Veea Inc. Reports 98% Revenue Decline and $47.5 Million Net Loss for Fiscal Year 2024

Plum Acquisition Corp. I, now operating as Veea Inc. following its business combination on September 13, 2024, reported significant financial changes in its 10-K filing for the fiscal year ending December 31, 2024. The company generated revenue of $141,760, a stark decline of 98% from $9.1 million in 2023. This drop was primarily attributed to the absence of substantial licensing income, which had previously contributed approximately $9 million in the prior year. The cost of goods sold also decreased by 82% to $83,290, reflecting the reduced revenue generation.

Operating expenses surged to $84.1 million, up from $19 million in 2023, driven by a $55 million transaction cost related to the earn-out share liability, which is contingent on achieving specific stock price milestones. Other notable increases included product development expenses, which rose by 98% to $1.4 million, and sales and marketing expenses, which increased by 277% to $811,537. General and administrative expenses also saw a significant rise of 55%, totaling $26.6 million, largely due to increased share-based compensation and professional fees associated with the business combination.

The company reported a net loss of $47.5 million for 2024, compared to a loss of $15.6 million in 2023. This loss was influenced by various factors, including the substantial increase in operating expenses and a loss on the initial issuance of convertible notes amounting to $1.8 million. Additionally, Veea recognized a UK R&D tax credit of $1.3 million, which partially offset the losses. The company’s accumulated deficit reached $217.8 million as of December 31, 2024.

Veea's operational metrics indicate a focus on expanding its market presence, particularly in sectors such as digital equity, energy sustainability, and smart retail. The company has developed a range of products, including the VeeaHub, which integrates various technologies for edge computing. As of the end of 2024, Veea employed 45 full-time staff and is actively pursuing strategic partnerships to enhance its distribution channels and reduce customer churn.

Looking ahead, Veea anticipates continued revenue growth driven by hardware sales, licenses, and subscriptions. The company plans to leverage its existing cash reserves, anticipated tax refunds, and potential equity financing to fund operations over the next twelve months. However, Veea acknowledges the inherent risks associated with its growth strategy, including the need for additional funding and the challenges of navigating a competitive market landscape.