BSQR - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the Bsquare Corporation's Second Quarter 2021 Financial Results Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Steven Gottlieb, Vice President of Corporate Affairs. Please go ahead, sir.

Steven Gottlieb

Thank you, and good afternoon, everyone.

prepared like and you the that the of we'd is this call begin, available text webcast be being a our we to website. that remind call and on Before Bsquare's will remarks recording of

will assumptions materially. During and cause statements. These current are actual that could subject to results making statements this be forward-looking differ based are call, on uncertainties to we that expectations risks and

refer comparable and this the call, as also are will regarding on financial at under diluted statements cautionary Bsquare's to During measures where our Please forward-looking refer to text today www.bsquare.com today fully numbers in Investors. non-GAAP the measures. GAAP release non-GAAP GAAP management as per-share contained All issued discussed applicable. website earnings well reconciliation financial to amounts

turn to call the CEO. Ralph over and President Derrickson, like I'd Now Bsquare's to

Ralph Derrickson

us afternoon, your and call with will the Call. well CFO Thank on welcome afternoon. the with Today's the as entrepreneur format along earnings I and today. Along and you, be answer results, business follow friends, the you may with the fellow time healthy. for to summer for taking this Thank XXXX Wheaton, COO, Earnings and has hope and Steven. treated you you are same calls. safe I family QX through have take Bsquare you, Chris Quarterly commentary you previous financial will Bsquare's and provide us Good questions to and any that QX

responsible off today. over perspectives quarter forgiveness and by XXXX customers quarter indication flat get then economy. $XX.X review XXXX. sustained during of million. Relations Paycheck led improvements supply an was quarter Protection to increased hand first for some the arrange quarter, results. revenue started of conversation, Combination who financial this This is bottom fund chain Partner for quarter both of in line. to VP COVID-XX-related quarter-over-quarter a the the a Solutions on issues used but our during increase that was second it Total revenue in the eased for Corporate our an loan, of we'll recovery. please clear Investor Chris follow-up contact the quarter, is our business providing anyone and and the is in of Gottlieb, a things Program drove For expenses of call The us would I like Steven and Affairs, off some powered of our will to who revenue, the developing that in measured XXXX connected the of cash part products for investments not

the of stock business at-the-market sale Subsequent off with to in of program, announced to which things the reserves QX detail more I'll generated were the bolstered from at get XXXX call. cash our this discuss our discipline. Chris to In and previously let end continued details focus the meantime, in quarter, the financial building additional close quarter. the hand by Our of into me

Christopher Wheaton

investors. you, Thank good and afternoon, Ralph,

These Cloud the QX with quarter segment, be our the the us XXXX, revenue in eased larger one and delays revenue QX sharing improvement, lags declined Ordering Solutions well period for XXXX. has deferred of comparative in with highly increase to or activity by QX QX and Revenue point revenue did was that decrease, Edge pandemic. improvement projects Partner and in from drove in which or increase $X.X compared the recognition seasonality recognition services professional certain the their focus due to low generally small unexpected get customers then, development largely Partner revenue customers. X% quarter. the with $XXX,XXX the our to of revenue during the Cloud for larger second to or when trended was pre-COVID Let's $XXX,XXX over Partner appears for variable opportunities. to our to to of customers Despite our since decrease $X.X to revenue QX in activities XXXX to driven chip reflect key revenue XXXX COVID of with decreased XX% as from quarter of an million the $XXX,XXX, for shortages or purchasing continues up unrelated XXXX. smaller product QX up to was represent of trends one critical and our more Since customers. and completion second that as onset million revenue an the generally timing variations Total Solutions upward of $X.X contracts. quarter. million These increase details XXXX. reoccur not from XX% of total compared XXXX to an million, a financial revenue revenue over Edge deliverables. to of or had June $XX.X than the Cloud was Edge the levels. right delays by an intentional This were in QX our Solutions orders XX% the shift In QX XXXX of to

in both the XX.X% product quarter customer down minor to mix. XXXX across costs Partner and decreased gross stable from compared Edge XXXX, labor that remained quarter QX of was cost margin consists QX margin from and revenue due XX.X%, to gross in primarily of Second to periods. Solutions rate QX to rate relatively down XXXX. cloud Cloud both in first fluctuations XX.X% of XXXX and Edge

inconsistent and fluctuates As a in based result, revenue segment margin been gross on between periods. has this

revenue QX $XXX,XXX to margin less total gross were ATM expenses the program of down. Ralph also compared operating the XXXX to was to mentioned the earlier. With flat primarily the QX that attributable cost XXXX, both increasing quarter, increase compared QX XXXX and by down and to an Edge first Cloud than

Microsoft. professional and the uncertain by fees due quarter second help a and in the reimbursements cooperative Microsoft XXXX, these the the onetime difficult of XXXX increased of availability rebates quarter to of temporarily provided environment Second operating of expense quarter created rebates to to and second distributors the compared decrease onset increased In the pandemic. by maneuver XXXX marketing

favorably In to income the our the addition, to compared company's prior June of nonoperating during Ralph XXXX in in million the $X.XX issues. net to constrained place to income net the of and expenses the continue XXXX QX of quarter. a the our Net quarter cash on $X.X XX, or revenue the from fit net $X.XX gain XXXX by quarter COVID-related during from for to loan. compare sale loss to during million by quarter of net in end. place Bsquare or proceeds improvements $X.X business $X.X and benefit of loss stock compared in The PPP common be forgiveness $XXX,XXX will used first Cash, driven took net diluted continues of model. diluted structure rightsize quarter per quarter first diluted were quarter. Positive and in was driven in to cost or as $X.X to XX subsequent the used share works results quarter current share of quarter operating per capital The million income related fundraising Current loss speak variations was strategic additional the the the for operations that our per equivalents done million share XXXX. includes from also to Cash that $X.XX the company periods over the of $XXX,XXX June a the million $XXX,XXX used to cash restricted cash XXXX. the as and balance totaled working by second $X.X investments, took XXXX.

As for answering your the your attention. time always, of at the end to thank and I forward you look call. questions

to turn things over back Ralph. now me Let

Ralph Derrickson

Chris. for our second the Thank does That it you, of discussion quarter.

a late. our million been filed questions we the fundraising, $XX.X shelf. fundraising the of thereafter, from attention By $XX common date million registration turn QX, now or July, our of exhausted million prospectus Shortly prospectus fundraising supplement, stock. million statement. Let's to is which a capacity subsequent shares our we at-the-market, representing to filed sale of million million $XX balance net Total $XX shelf of our generating we ATM supplement. X.X In as $XX had and a ATM filed has

our we supplement to for operational intend and the opportunities use proceeds pursue filings, to systematically ATM As new cash described growth. in

arrange We believe I've our activity I have intentions, recently here, to Gottlieb. EDGAR the that price and follow-up received addressed to me filings a that Operator, I'd Thank number not our our time or policy you me, share and is of Thank it if for inquiries to Operator, please today. prompts you. market your is open contact let which regarding line for open funding Steven would remind you ongoing for information. with discussion our add line. remind the would comment questions? please please also me review And that you like while offering. but happening, status our on Chris like to on additional you a to investors

Operator

turn Instructions]. closing no to Mr. or will remarks. call [Operator at now any time. the are this for I And additional over there Derrickson questions

Ralph Derrickson

Thank today. call you for participating in our

Gottlieb, have a you, afternoon. any arrange contact and and If you good or questions follow-up thank to discussion, please would Steven like

Operator

will That your Thank you conference. conclude participation. today's for

disconnect. You may now

Steven Gottlieb	VP, Marketing
Ralph Derrickson	President, CEO & Director
Christopher Wheaton	CFO, COO, Secretary & Treasurer

Bsquare (BSQR) 13 Aug 212021 Q2 Earnings call transcript