Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 53

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 53
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 decrease of $1.97 million in interest
expense on loans, convertible loans and long-term debt, offset by an increase of $3.1 million in foreign exchange loss, net expenses.

Net loss

Net loss decreased by approximately $26.1 million,
or (32.9)%, to $53.2 million for the year ended December 31, 2024, compared to $79.3 million for the year ended December 31,
2023. The decrease was mainly due to an increase in revenues and a decrease in finance expenses, offset by an increase in our costs of
revenues and operating expenses, including, research and development expenses, sales and marketing expenses and general and administrative
expenses.

Key Business Metrics and Non-GAAP Financial
Measures

We monitor the key business
metrics set forth below to help us evaluate growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts,
and assess operational efficiencies. Our key business metrics are revenue backlog, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free
Cash Flow and Adjusted Net Loss. Increases or decreases in our key performance metrics may not correspond with increases or decreases
in our revenue.

Revenue Backlog

                             Year Ended                                      
                             December 31,                                    
  (in thousands of USD)      2024                          2023              
 ─────────────────────────────────────────────────────────────────────────────
  Revenue backlog            $                 30,716                32,694  

Revenue backlog is a key
business metric that we define as booked orders based on purchase orders or hard commitments (having a duration of less than one year)
that have not been shipped yet or have been shipped but not yet recognized as revenue. We consider revenue backlog to be a useful metric
for management and investors, because it is not affected by accounting standards, and, while its evaluated independently of our deferred
revenue pursuant to our revenue recognition policy, it can be an important indicator of our expected recognized revenue for the periods
following the measurement date. Our revenue backlog as of December 31, 2024 was approximately $30.7 million, compared to revenue
backlog of approximately $32.7 million as of December 31, 2023. The decrease was primarily attributable to an increase in sales
in 2024 in our aeronautics and safety tech business units compared to 2023.

EBITDA

                              Year Ended                                        
                              December 31,                                      
  (in