MultiSensor AI Announces First Quarter 2024 Results

Strong top-line expansion and balance sheet improvements support the foundation for further growth

HOUSTON, TX / ACCESSWIRE / May 16, 2024 / MultiSensor AI Holdings, Inc. (NASDAQ:MSAI), a pioneer in AI-powered industrial condition-based maintenance and process control solutions announced results for the first quarter ended March 31, 2024.

Financial Highlights for Q1 2024:

• Revenue increased 132% year over year from $980k to $2,275k
• Annual recurring revenue¹ increased more than 450% from approximately $425k to $2,500k
• Completed conversion of $7.05 million of convertible notes and other debts to equity
  (including conversions subsequent to Q1)

Strategic Business Highlights:

• The Company continued its revenue expansion with launch customers and initiated SaaS contract with new enterprise customers. Anticipated revenue scaling is expected from expansion of existing relationships and a robust pipeline of new customers.
• Completed corporate name change and re-branding from Infrared Cameras to MultiSensor AI.
• Announced multiple upgrades in scope and functionality of MSAI Cloud and MSAI Edge software platforms.
• Subsequent to quarter end, launched MSAI Inspections business, expanding service offerings to include additional sensor modalities and services to meet the needs of enterprise customers.
• On March 7^th announced the termination of an earnout provision that would have required the Company to issue up to 2.4 million shares of the Company's common stock to former stakeholders of Infrared Cameras.
• Also on March 7^th agreed to waive the lock-up restriction with respect to roughly 2.1 million shares of the Company's common stock.

David Gow, MultiSensor AI's Chair, commented: "Our strong first quarter results are an early indication of the future prospects for MultiSensor AI. During the quarter we demonstrated significant year-over-year growth, driven primarily by greater presence within our existing customer base and the addition of new relationships. We improved our equity free float by releasing restricted shareholders early from their lock-ups. By converting our debt obligations into equity we eliminated significant future cash payments for interest and principal liabilities. And by terminating the 2.4 million share earnout provision we eliminated a potential share overhang. Having a balance sheet that is nearly all equity positions the Company well for future growth."