Resideo Technologies, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 28, 2024. The company achieved net revenue of $1,828 million for the three months ended September 28, 2024, marking a 17.6% increase from $1,554 million in the same period of 2023. For the nine months, net revenue rose to $4,903 million, up 4.2% from $4,705 million year-over-year. The growth was primarily driven by the acquisition of Snap One, which contributed $251 million to the quarterly revenue, alongside higher sales volumes.
Gross profit for the third quarter increased to $524 million, compared to $417 million in the prior year, reflecting a gross margin of 28.7%, an improvement of 180 basis points. This increase was attributed to lower manufacturing costs and favorable impacts from acquisitions, despite some offsetting factors such as lower sales volumes and unfavorable margin mix shifts.
However, net income for the quarter decreased slightly to $20 million from $21 million in the previous year, while net income for the nine months fell to $93 million from $128 million. The decline in net income was influenced by increased operating expenses, which rose to $398 million for the quarter, up from $308 million in 2023, largely due to costs associated with the Snap One acquisition.
Restructuring expenses decreased to $28 million for the third quarter, down from $38 million in the same period last year. The company also reported a significant increase in long-term debt, which rose to $1,983 million as of September 28, 2024, compared to $1,396 million at the end of 2023. This increase was primarily due to financing related to the Snap One acquisition, which was completed in June 2024 for an aggregate purchase price of $1.4 billion.
Cash flow from operations improved to $241 million for the nine months ended September 28, 2024, compared to $177 million in the same period of 2023. The company also reported a net cash increase from financing activities, totaling $1,043 million, driven by $1,176 million in incremental term loan borrowings and $482 million from the issuance of preferred stock.
Overall, Resideo's strategic acquisition of Snap One has expanded its market presence and product portfolio, particularly in the smart home and audio-visual sectors, while also introducing new operational challenges and financial obligations.
About RESIDEO TECHNOLOGIES, INC.
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