Flotek Surpasses 2024 Annual Guidance with Strong Fourth Quarter and Full-Year Results

Core Insights - Flotek Industries reported its strongest quarterly results of 2024 in terms of revenue, gross profit, net income, and adjusted EBITDA for Q4 2024 [1][5][7] - The company achieved a significant increase in operational efficiency and service quality, marking the highest profitability metrics in nearly a decade [2][4] - Flotek's technology portfolio expanded with the introduction of three new Data Analytics solutions, leading to a notable transformation in service revenue [3][4] Financial Performance - Total revenues for Q4 2024 were $50.8 million, a 20$42.2 million in Q4 2023 [5][7] - Gross profit for Q4 2024 was $12.3 million, up 30$9.4 million in Q4 2023, with a gross margin of 24% [7][18] - Net income for Q4 2024 was $4.4 million, or$0.14 per diluted share, compared to $2.1 million, or$0.07 per diluted share, in Q4 2023 [7][18] Yearly Overview - Full-year 2024 total revenues were $187.0 million, slightly down from$188.1 million in 2023 [5][7] - Full-year gross profit increased to $39.4 million from$24.3 million in 2023, reflecting a strong operational performance [8][18] - Adjusted EBITDA for 2024 reached $20.3 million, significantly up from$1.5 million in 2023, exceeding guidance by 10% [7][18] Segment Performance - Chemistry Technologies segment reported external revenues of $21.1 million in Q4 2024, up from$18.0 million in Q4 2023, while related party revenues increased to $27.2 million [6][18] - Data Analytics segment saw a 124% increase in service revenue compared to Q4 2023, indicating a shift from product to service offerings [3][7] Future Outlook - The integration of Data and Chemistry is expected to drive innovations in the energy and infrastructure markets, enhancing customer asset returns and reducing costs [4][8] - Flotek plans to issue 2025 guidance alongside its Q1 2025 financial results [10]