OTIVF - Earnings call transcript Q4 2020 | on Track Innovations LTD

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to OTI's Fourth Quarter and Full Year 2020 Results Conference Call. All participants are present in a listen-only mode.

Following management’s formal presentation, instructions will be given for the question-and-answer session.

As a reminder, this conference is being recorded.

received the all press have should by company's now release. You

or begin, please have Investor & would Investor X-XXX-XXX-XXXX www.otiglobal.com. the I'd not over website you GK to call the contact please? section Public it like of News you received at now Investor If of at GK to Helft, it, OTI's Mr. Relations. company's Helft in Mr. at Relations Relations to hand like view the team Ehud

Ehud Helft

fourth Assaf quarter I that Yehuda Innovations' call believe, fourth the XXXX. the They use key recent and such full provide year by the review company expect, to quarter Welcome management Assaf call. Please as information Track of year discuss will other terms to OTI be plan strategy and this Holtzman, highlights the and identified forward-looking certain XXXX be conference call CEO; discussed full will and and some us while performance OTI's this Cohen, would thank of are terms. contain On company's of today from will, financial on like for the the comparable intend, advised also the can Yehuda call. company's will the for statements. hosting With CFO. on

the takes statements cash fulfill potential belief of respect the OTI's beliefs its measures the expenses an pandemic, solution, that the any outlook statements strategy, regarding and the TRIO-IQ when OTI’s OTI's in forward-looking payment the satisfaction recurring using in needs rights midterm, its raising example, among sales OTI release and to needs, those OTI's the will its the optimism in with offering continue ongoing funds expectation things, cash potential midterm and thereof, timing today, from forward-looking increase to and thereof, and for OTI's the addition that is cashless OTI as from ability revenues the COVID-XX successful, be mentioned cutting growth it For to company's profitability OTI's OTI's to for and earlier potential of results press impact other concern virus the discusses, OTI of system.

statements forward-looking the provisions the to issued and website ahead, speaks would They based obligation current best available of and company's I subject time are respective unknown forth please. set which to the Yehuda, in release company's not upon the future they over information, information, update belief that, Yehuda the faith, of are assumes judgment good Safe and CEO, guarantee no in are detailed are factors, those risk call or OTI SEC. to as any press earlier uncertainties their we While time with investors.otiglobal.com. from And Harbor very Holtzman. performance. on forward-looking filing with known including to statements The hand today at go OTI's dates. full now is which and

Yehuda Holtzman

Welcome you, Ehud. thank you and Thank joining today. us for all,

to Poland. aim Mass fourth due our held Transit But to will this exit our core the of to progress XXXX, balance our allow recurring is on are the also continue sale whole, and Looking completing of become it growth we the business sheet, debt we from subsidiary. our over management will as divesting Its the process not forward first, to particularly now Polish activity our this to believe We in its sale sale. activity within focus strengthen I with in I growth details. have further been that positioned to later pleased of The accounted strategy, and highlight as sales year. our the has operations. process prior strategy In delve call, to we Therefore, in region on our we this decided our business the payment a results in the the and this activities at our XXXX for year. cashless focus we into our I want made Ticketing looking discontinued in results for profitable with are started well better periods, are and current in penetrating target and revenue as core solution thereof systems. quarter, our

pleased In headwind terms year-over-year overall than despite with business performance, grew was of from performance in level during I our It by what financial strong. the that segment, is business a of in tough our underlying core our COVID-XX XX% Retail demonstrated for significant revenue XX% more we our pandemic. XXXX, and am year everybody. this

which our with in and growth is we to new transaction the continues be $XXX,XXX of major line of strategy, the global very stream. in on amounted when hope pandemic which this revenue. with a the stream, recurring a results impact emphasis portion of of are global total and for bodes major like recurring a Part and the XXXX, in well strategy fees fourth revenue the out our Our sales, gaining traction to revenue to of sustainable lead revenue In highlight, million. quarter, recurring strategy licensing everyone, we pleased $X.X diminishes. To

revenues. revenue COVID our revenues from casinos, recurring revenue a centers, but some year requires installed, this of is shopping Combined weakest us the technologies recurring where model closed comparison, as for typically to recurring payment regular shutdown $XXX,XXX. are quarter led activities were the unattended of in impact lumpy QX stream the off cashless standpoint. airport, initial the such continued from to with of that with the being For smaller many quarter It of important from to one-time to year in sacrifice switching long-term bear fourth mind revenue last the revenue

we strategic very encouraged. furthermore, standpoint, However, are a from

increased already and the half a OTI. of of a the new fourth particular, number saw customers, We in traction saw grow customers. And in for expect led for we potential revenue strong this these group believe regions, in of which quarter, sales significant During to we has few large second to from early key those the initial new customers has we recurring provide the become to XXXX. a and and stream stream relatively

increasingly made in us winning Our new optimistic. has customers success

be a I expect OTI. year ahead, XXXX Looking growth strong for of will

Our goal unattended maintaining combined the We the to increased over our operation, half during environment growth, as the with enable year. favorable current that expenses. reach is efficient profitability of solutions. control while generally, us view second tight expected the for will sale we More payment very cashless believe

card Invest, the years. challenges pandemic that by logistical and is U.S. leading shutdown all cash a to are from virus key existing XX the fact, report crisis credit XXXX, are percentage coronavirus out people focused or a on shift pointed current between where poses renewed the points, this lead the consumer and us, for recent the away innovation, and cash ARK our card to payment I solutions, problem. cashless declined In accelerated vector the a to a expect transmission only for or physical that transactions OTI. solution between Hard and in TRIO-IQ cash in its such the phone, and an by fund contact growth Once are payment behind simple by as X by own of a

of Our the most technically. solution advanced one is

adding all as shortens a time a are pre-certified it our process, is with is credit selling This of the installation step, already customers new are point another many products already all and to for providers in -- significantly we certification Our regions cards consistently. major ours complete. which we operate, month already the as is

expect solution performance seeing TRIO-IQ XXXX. Our be we significant in and contributor traction sales, our growing a is strong and it more to to

$X.X million cash our of of had of sheet, as $XXX,XXX of and XXXX. we balance terms XX, In loan bank a December

shareholders of $XXX,XXX was company a $XXX,XXX X and second quarter, loan convertible During the provided with provided tranche fourth our the January. a of in of

also to able provided raise to growth time more being, for execute we strategy. enough While wish better be capital this capital has our the working to

million have are As you that we This OTI. where the our raise via I'm shareholders. yesterday, to and up statement a we shares. rights provide to be for headed, existing good additional registration I'm year may shareholders will filed all a pleased opportunity to XXXX In summary, $X.X offering seen purchase our optimistic to

initial recurring seeing led new provide already our will success which of are strategy, with customers growth revenues. grow the and us of We stream potential to to has long

our second execute increase financial Assaf our and are good. turning half more you, provide well the to we XXXX. reserves to results. our placed to believe cashless raise is hand And our to continue our mentioned, balance shareholders, we would that turn market growth capital of is I the Cohen, I that. And the to I to payment to some strategy. the in allow market sheet of are take of of the As our to the working very means advantage profitability business the to summary capital position strengthen to Further, CFO, on at this of forefront goal to like bandwidth to over our for outlook the call our unattended

Assaf, please go ahead.

Assaf Cohen

Thank you, Yehuda.

we discontinued subsidiary with will these I a mentioned, has covering the understanding our results on our metrics, usual, periods’ comparable sell including this operations. of conform for reclassified EBITDA adjusted of non-GAAP information the ASEC ongoing from operations, segment, Ticketing As be Furthermore, We were all earnings to included results. GAAP Polish non-GAAP decided current performance. and includes to metrics, release Mass details to our better presentation. period's see as a and Transit have ASEC Yehuda reconciliation that believe as our the website provides financial continuing prior the EBITDA the Please been further some about of including adjusted

million Our XX% amounted a compared in to $X.X year. fourth the revenues last million, $X.X quarter of decrease quarter to the fourth when in

a million $XX.X For compared million, in XXXX. to were XXXX, XX% revenues when increase $XX.X

derived total with of last total revenues in revenues million million $X.X total of million XX% were were XX% last in total Retail or XX% $XX.X the of revenues of XXXX from of revenues compared or or revenues. breakdown revenues And XXXX terms revenues Petroleum with compared $X.X XXXX. or where XX% In million year year. were $X.X in

or in or last with the million with with $X.X breakdown or million XXXX. year $X.X $X.X $X.X revenues. or transaction fourth last last was year. of operating million or to XX% revenues at compared XXXX of quarter was compared for XX% XX% XX% the year last in the million revenue at quarter or million accounted last $X.X was fourth is $X.X million year. of reported similar of fourth and quarter revenues last to XX% versus revenues with or This revenues. versus fourth APAC year. XX% of revenues. in of The margin XX% the to transaction last Europe year for of quarter, million Gross In of year compared geographic million. revenue margin of $XXX,XXX of XX% were was million of $X.X fees Africa was last of of Licensing XX% Looking in $XXX,XXX or of $X.X year. million compared XX% were $X.X revenue revenues or XX% $X.X compared and or XX% or $X.X XXXX Americas XX% XX% of quarter fourth year. revenue revenues. last that XX% million fees were a the million level compared Licensing And or expenses $X.X in Gross in

million For loss quarter $X.X million $X.X XXXX. the to with XXXX, operating year. of net compared quarter of expenses a was the loss This fourth were Net million. in $X.X last compared is million $X in in

$X.X million year. of million net net a last loss to $X.X was loss XXXX, For compared

an was $X.X last EBITDA XXXX our in million quarter year. EBITDA million results. loss fourth adjusted to loss of quarter the Adjusted non-GAAP of turning the Now to $X.X of compared in fourth

XXXX, was EBITDA adjusted with loss for $X.X loss For compared XXXX. EBITDA million million $X.X adjusted of

our Looking at sheet. balance

the XX, cash, our have next without of least fundraising the balances management Short-term cash, cash other loans period December and million, the months. on sufficient cash based us that XXXX, flow continue for the a loan increase opinion company's of As operation will $X.X and or $X.X had were XX, convertible of we our million. resources projected in our is short-term XXXX, From and cash investment a equivalents of cash we of $X.X million. enable also XX at a not position, to totaled as December further to

there a doubt growing concern. regarding result, is a continue As a our ability substantial to as

our of working have reduction by employees. funds. needed, the members we increase Furthermore, taken are We raising steps, cash material and including as salary cost including reduction in to our management

respond and call discussed shareholders, earlier, raised a And funds questions, Q&A. we offering which we shareholders. following Yehuda we will the live As in Ehud, sent launched rights our we which existing have for have review from questions. from a your some please will now, the to open were

Ehud Helft

this of of for our and business. thank call, from number investors our of their a number interest Okay. see We a questions we ahead continued very investors in much

your endeavor now will to answer questions. We

doing Ailon press is, you cryptocurrencies from is December are Bitcoin mentioned question as question anything release? such Capital. A.Z.G in The first or as you other with of any Grushkin -- Our XXXX

Yehuda Holtzman

not we or Bitcoin any other are cryptocurrency. Currently, with doing

Ehud Helft

Thank you for that, Yehuda.

is question [Thomas from to been a give Pott]. there He's basis? message regular next a to asking, Our why shareholders hasn't on

Yehuda Holtzman

second. One

So Ehud, -- the question, could you sorry? repeat

Ehud Helft

a [Thomas asking message any why on to Pott] regular shareholders is there to wasn't give basis?

Yehuda Holtzman

currently, to meet for the So making will information shareholders sure our available. changes and on are update is focusing important we our strategy, as we

Ehud Helft

Thank you.

Another question why million. valued $XXX is PetroSmart Orpak, at so including the which is low? about is is valued OTI question And

Yehuda Holtzman

So company another cannot speak I valuation. with regards to

in the and stream profitability need demonstrate recurring and to And value. I reach will we increase that, drive OTI, rate, revenue for continue soon. As our high-growth with our especially believe,

Ehud Helft

question investors to the [IV] owns happens is XX% of you what if that. Thank over last OTI? small And the for

Yehuda Holtzman

All company profitability should shareholder be that and aligned become shareholders grow, of value OTI created. the interest will have the

Ehud Helft

Thank far. please now the the received we call the you. questions-and-answer call remain. open live open questions questions That we for if And have concludes Operator, any live so session. questions, will for

Operator

Instructions] [Operator

Operator

time. at make further you Mr. concluding no questions are like this statement? would to There your Holtzman,

Yehuda Holtzman

Sure.

OTI, Thank We our quarter and to you with good like of I our a all call of speaking to submitted interesting you it would forward you, business. behalf for next also and day. thank updating today to of you thank make that to on more support our have on those for us. interest continued of progress. and on you like I So especially questions your would long-term look

Operator

concludes This quarter call. OTI's conference you. full XXXX results fourth Thank you your for and year participation. Thank

go and may ahead You disconnect.

on Track Innovations (OTIVF) 1 Apr 212020 Q4 Earnings call transcript