Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about BigBear.ai Holdings, Inc. (BBAI) .BigBear.ai currently has an average brok ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Revenue and Gross Margin - Revenue increased by $7.5 million (22.1%) in Q3 2024 compared to Q3 2023, driven by the Pangiam Acquisition, partially offset by decreased volumes in certain Air Force programs[172] - Gross margin for Q3 2024 was $10.8 million, up from $8.4 million in Q3 2023[171] - Revenues decreased by $0.2 million (0.2%) for the nine months ended September 30, 2024, compared to the same period in 2023, driven by the Pangiam Acquisition offset by decreased volume from the Air Force EPASS program[185] Operating and Net Loss - Operating loss for Q3 2024 was $10.5 million, compared to $8.2 million in Q3 2023[171] - Net loss for Q3 2024 was $12.2 million, compared to a net income of $4.0 million in Q3 2023[171] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(4.358) million, compared to $(6.870) million in the same period in 2023[199] Acquisition and Strategic Initiatives - The company completed the acquisition of Pangiam on February 29, 2024, enhancing its vision and edge AI portfolio[150] - Transaction expenses decreased by $1.4 million (100.0%) for the three months ended September 30, 2024, compared to the same period in 2023, due to the completion of the Pangiam Acquisition[178] - Research and development expenses increased by $5.5 million (183.9%) for the nine months ended September 30, 2024, compared to the same period in 2023, driven by increased headcount and the inclusion of Pangiam's results[188] Financial Performance and Expenses - Cost of revenues decreased to 74% of total revenues for the three months ended September 30, 2024, compared to 75% in the same period in 2023, driven by a higher mix of higher margin solutions[174] - SG&A expenses as a percentage of total revenues decreased to 42% for the three months ended September 30, 2024, compared to 46% in the same period in 2023, primarily due to higher revenue[175] - SG&A expenses as a percentage of total revenues increased to 51% for the nine months ended September 30, 2024, compared to 46% in the same period in 2023, driven by non-recurring strategic initiatives and integration costs[187] - Research and development expenses increased by $4.2 million (1194.6%) for the three months ended September 30, 2024, driven by increased headcount and timing of certain projects[176] Backlog and Contract Delays - Total backlog as of September 30, 2024, was $437.494 million, a significant increase from $167.810 million as of December 31, 2023[209] - Funded backlog as of September 30, 2024, was $77.422 million, compared to $30.112 million as of December 31, 2023[209] - The company anticipates potential delays in new contract awards due to the continuing resolution funding the U.S. government through December 20, 2024[156] - Geopolitical tensions in Ukraine, the Middle East, and the Pacific region have slowed the pace of contract awards, pushing revenue into subsequent periods[159] Liquidity and Financing - The company raised $20.6 million through the exercise of RDO warrants and $33.2 million through the exercise of PIPE warrants in early 2024[151][152] - The company entered into a Controlled Equity Offering sales agreement on May 10, 2024, allowing it to sell up to $150.0 million in common stock[213] - The company's primary sources of liquidity are cash flows from operations and access to credit facilities, with projected cash flow expected to meet needs for the next 12 months[210] - Available cash and cash equivalents increased to $65.584 million as of September 30, 2024, compared to $32.557 million as of December 31, 2023[217] - Net cash used in operating activities was $23.3 million for the nine months ended September 30, 2024, primarily due to a net loss of $22.2 million and unfavorable changes in net working capital[232] - Net cash provided by investing activities was $6.2 million for the nine months ended September 30, 2024, primarily from cash acquired in the Pangiam Acquisition[234] - Net cash provided by financing activities was $50.2 million for the nine months ended September 30, 2024, mainly from the exercise of PIPE and RDO warrants[235] - The Company entered into warrant exercise agreements, raising approximately $53.8 million from the exercise of PIPE and RDO warrants[229][230] Debt and Convertible Notes - Total debt remained at $200.0 million as of September 30, 2024, with unamortized issuance costs of $4.262 million[218][221] - The Company issued $200.0 million of unsecured convertible notes with a 6.0% annual interest rate, convertible into 18,844,600 shares of common stock[219][220] - The Company has a $25.0 million senior secured revolving credit facility with Bank of America, maturing on December 7, 2025[222][223] - The Company's long-term debt, net of unamortized issuance costs, was $195.738 million as of September 30, 2024[218] - The conversion rate for the Convertible Notes was adjusted to 94.2230 shares per $1,000 principal amount due to the average daily volume-weighted average price of the common stock being less than $10.00 during the preceding 30 trading days[245] - The adjusted conversion price is $10.61, and the Convertible Notes are convertible into 18,844,600 shares, excluding interest payments settled with shares[245] - The outstanding principal amount of the company's long-term debt as of September 30, 2024, was $200.0 million, excluding unamortized discounts and issuance costs of $4.3 million[245] Tax and Valuation - Income tax expense for the nine months ended September 30, 2024, was $22 million, a decrease of 56.9% compared to $51 million in the same period in 2023[196] - The effective tax rate for the nine months ended September 30, 2024, was consistent with the previous year, primarily influenced by state and local taxes, permanent differences, and discrete items[196] - The company maintains a full valuation allowance against its deferred tax assets as of September 30, 2024, due to uncertainty about their realization[197] - The Company performed a quantitative goodwill impairment test as of September 30, 2024, using a discount rate of 12.0%, and determined no impairment was necessary[241][242] - Goodwill impairment charge of $85.0 million was recognized for the nine months ended September 30, 2024, primarily due to a decrease in share price[192] Market Risk and Management - The company is exposed to market risk related to interest rates, primarily through fixed-rate long-term debt and revolving credit[245] - The company has policies and procedures in place to manage and mitigate market risks[247] National Defense Budget - The FY 2024 National Defense budget was set at $886 billion, with $842 billion allocated to the DoD base budget[154] - The FY 2025 National Defense budget request is $895 billion, with $850 billion proposed for the DoD base budget[155] Derivatives and Fair Value - Net decrease in fair value of derivatives was $1.3 million for the three months ended September 30, 2024, compared to a decrease of $15.7 million in the same period in 2023, primarily due to the settlement of warrants[180] - Net increase in fair value of derivatives was $14.8 million for the nine months ended September 30, 2024, compared to a decrease of $1.9 million in the same period in 2023, driven by fair value remeasurements of warrants[193] Free Cash Flow - Free cash flow for the nine months ended September 30, 2024, was $(31.013) million, compared to $(20.979) million in the same period in 2023[201] Senior Revolver Covenants - The company was in compliance with the Senior Revolver covenants as of September 30, 2024, but is currently unable to draw on it due to Adjusted EBITDA requirements[214]

BigBear.ai's Q3 report arrived with interesting comments about how governments are approaching AI spending.BigBear.ai (BBAI -8.52%) stock is losing ground in Wednesday's trading. The company's share price was down 8.5% as of 1 p.m. ET. Meanwhile, the S&P 500 (^GSPC 2.31%) index was up 2.2%After the market closed yesterday, BigBear.ai published its third-quarter results. While the company's earnings came in better than anticipated, sales fell short of expectations -- and management's forward guidance did not ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

BigBear.ai Holdings, Inc. (BBAI) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.07. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this company would post a loss of $0.07 per share when it actually produced a loss of $0.04, delivering a surprise of 42.86%.Over the last four quarters, the compan ...

Revenue and Financial Performance - Revenue increased 22.1% to $41.5 million in Q3 2024 compared to $34.0 million in Q3 2023[1][4] - Q3 2024 revenue increased to $41.505 million, up from $33.988 million in Q3 2023, representing a 22.1% growth[26] - Nine months ended September 30, 2024 revenue was $114.409 million, slightly down from $114.601 million in the same period of 2023[26] - Full-year 2024 revenue guidance affirmed between $165 million and $180 million[1][16] Gross Margin - Gross margin improved to 25.9% in Q3 2024 from 24.7% in Q3 2023[1][4] - Q3 2024 gross margin improved to 25.9%, up from 24.7% in Q3 2023[26] - Nine months ended September 30, 2024 gross margin improved to 25.2%, up from 24.1% in the same period of 2023[26] Net Loss and Income - Net loss of $12.2 million in Q3 2024 compared to net income of $4.0 million in Q3 2023[1][4] - Q3 2024 net loss was $12.176 million, compared to a net income of $3.999 million in Q3 2023[26] - Net loss for the nine months ended September 30, 2024, was $(149,060) thousand, compared to $(39,110) thousand for the same period in 2023[21] - Nine months ended September 30, 2024 net loss widened to $149.060 million, compared to $39.110 million in the same period of 2023[26] Adjusted EBITDA - Non-GAAP Adjusted EBITDA of $0.9 million in Q3 2024, up from $0.2 million in Q3 2023[1][6] - Q3 2024 Adjusted EBITDA improved to $948 thousand, up from $157 thousand in Q3 2023[26] - Nine months ended September 30, 2024 Adjusted EBITDA was $(4.358) million, an improvement from $(6.870) million in the same period of 2023[26] - Q3 2024 Adjusted EBITDA margin improved to 2.3%, up from 0.5% in Q3 2023[26] - Nine months ended September 30, 2024 Adjusted EBITDA margin improved to (3.8)%, up from (6.0)% in the same period of 2023[26] Contracts and Backlog - Ending backlog of $437 million as of September 30, 2024[6] - Awarded a 5-year $165 million contract for U.S. Army's GFIM-OE production services[7] - Received a shared IDIQ contract with FAA worth up to $2.4 billion over 10 years[8] Operational Highlights - Deployed biometric boarding solution veriScan at Denver International Airport, impacting 46,600 international passengers[9] - Demonstrated ConductorOS AI orchestration platform at DoD's RDER T-REX24-2 event[10] Balance Sheet and Liquidity - Total assets increased to $354,083 thousand as of September 30, 2024, compared to $199,910 thousand as of December 31, 2023, reflecting significant growth[20] - Cash and cash equivalents rose to $65,584 thousand as of September 30, 2024, up from $32,557 thousand as of December 31, 2023, indicating improved liquidity[20] - Goodwill increased to $118,621 thousand as of September 30, 2024, compared to $48,683 thousand as of December 31, 2023, due to business acquisitions[20] - Total stockholders' equity improved to $98,433 thousand as of September 30, 2024, from a deficit of $(67,335) thousand as of December 31, 2023[20] Cash Flow and Financing - Net cash used in operating activities for the nine months ended September 30, 2024, was $(23,313) thousand, compared to $(18,233) thousand for the same period in 2023[21] - Acquisition of business, net of cash acquired, amounted to $13,935 thousand in the nine months ended September 30, 2024[21] - Proceeds from issuance of shares for exercised RDO and PIPE warrants, Private Placement, and Registered Direct Offering shares totaled $53,809 thousand in the nine months ended September 30, 2024[21] - Net increase in cash and cash equivalents for the nine months ended September 30, 2024, was $33,027 thousand, compared to $19,552 thousand for the same period in 2023[21] Non-GAAP Financial Measures - BigBear.ai uses non-GAAP financial measures such as EBITDA, Adjusted EBITDA, and Recurring SG&A to provide supplemental information about financial performance[32][36] - Adjusted EBITDA is defined as EBITDA adjusted for equity-based compensation, restructuring charges, and other non-recurring items[36] - Adjusted EBITDA Margin is calculated as Adjusted EBITDA as a percentage of Revenue[37] - Recurring SG&A excludes equity-based compensation, non-recurring strategic initiatives, and litigation costs[37] - BigBear.ai does not reconcile forward-looking non-GAAP measures to GAAP due to unpredictability of certain GAAP elements[40] - The company believes non-GAAP measures offer useful insights for comparing financial results across periods and with other companies[34][38] - Non-GAAP measures exclude significant expenses and income required by GAAP, limiting their comparability[39] - BigBear.ai provides reconciliations of non-GAAP measures to the most directly comparable GAAP measures[41] Company Overview - The company operates in AI-powered decision intelligence solutions for national security, digital identity, and supply chain management[43] - BigBear.ai is publicly traded on the NYSE under the symbol BBAI[43] Impairment and Other Expenses - Goodwill impairment of $85,000 thousand was recorded in the nine months ended September 30, 2024[21]

BigBear.ai Holdings, Inc. (BBAI) ended the recent trading session at $1.58, demonstrating a -0.63% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 0.8%.Prior to today's trading, shares of the company had gained 6.71% over the past month. This has outpaced the Computer and Technology sector's loss of 0.01% and the S&P 500's loss of 0.97% in that time.The investment community will be paying clo ...

BigBear.ai (BBAI) on Monday announced that it has been awarded a five-year, $165.15 million sole-source prime contract by the U.S. Army for Global Force Information Management (GFIM) Production Services. Building on its previous collaboration with the Army since 2021, where BBAI has worked to transform 15 legacy systems into a unified intelligent automation platform, this contract will further support the development and deployment of GFIM-OE capabilities. The project aims to deliver a dynamic and interoper ...

Investors in the artificial intelligence (AI) specialist got some much-needed good news.Shares of BigBear.ai (BBAI 14.60%) got a much-needed boost on Monday, surging as much as 13.7%. As of 11:37 a.m. ET, the stock was still up 13.1%.The catalyst that sent the artificial intelligence (AI) specialist higher was word the company had scored a big contract.The U.S. Army's digital transformationIn a press release Monday morning, BearBear announced a new five-year $165.2 million contract to produce a next-generat ...