TEUM - Earnings call transcript Q2 2019

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

Operator

Good day, and welcome to the Pareteum Corporation Second Quarter 2019 Financial Results Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Michael Bloom, Investor Relations. Please go ahead.

Michael Bloom

Thank you, and good afternoon, everyone. us earnings Corporation's conference results, joining June quarter call. for XXXX, XX, analyst you for second Pareteum ended Thank and investor Chief Mumby, Financial Global Officer; With Founder, Bozzo, Vice Co-Founder Chief Hal President, are Commercial Vic Officer Officer; Executive Officer; and Chief and Braelow, Rob Operating Chief us McCarthy, Sales Officer; Enterprise. O'Donnell, Turner, Ted and Denis Chief today Chairman Pareteum's Christine

for Earlier the released today, results quarter financial XX, June ended XXXX. Pareteum

visit not Pareteum's have If received www.pareteum.com. release, please page Pareteum's investor you earnings at

Following management's be will there a discussion, Q&A session.

conference During of Section the course Act making of XXE the be the Securities forward-looking of within this of of call, meaning the company Section and Act of the will XXXX Securities statements Exchange XXA XXXX.

future international performance, relationships assumptions any proposed any underlying products any Any new foregoing. regarding of about in anticipated the the any regarding a agreements, U.S. of success that company's to statement. management any for is company future any statements revenues, future of forward-looking a relating results. statements cautions historical the of includes and or statements belief, concerning new is includes expectations or regarding company's or products, statements for It statement statement statement economic statements any statements This projections the or plans, operations. of conditions financial cash, strategies earnings, you not objectives of that statements fact other markets, The and any also of

today. results that on subject actual to numerous of conference are this These cause expectations to those materially assumptions from date the uncertainties and call forward-looking and described differ statements are as based of risks and could

"Forward-looking future or and Pareteum to press do in in of and Commission. to today's risks. reflect statements," forward-looking public Securities does Investors update not reports the potential actual company to files assumes are events the Some periodic read Exchange no of should these these release risks the statements described that and or investors these outcomes intend with the section titled so. obligation

over and Mr. turn to With that, Chairman call would Executive like Officer, the Pareteum’s to Founder, I Hal Turner. Hal? Principal

Hal Turner

also their analysts you those from taking Pareteum. hear and to like our time are across thank very and in to world, the Mike, our vision who quarterly much listening update for I'd thank

Simply achieved materially by the of quarter a exceeded XXXX we beginning. revenues exceeded communications. our stated, $XX.X global just only have superb which $X many million QX. full by in six million. threshold. in very we're under was had In backlog days We expectations milestones. some analyst strategies. important growth QX, perspective, standalone crossed contract changed delivered and Pareteum, early This months these billion In really we've distance was just we've our We've our consensus cases achieved ambitious executing already have for yet year in $XX.X have and we This short in revenues accomplished revenue of

form customers. communications and control Cloud, an is shifted Our importantly of digital globally Cloud is digital gives our importantly most into engineering the of And our communications the hands software customers, shifting hands and and development of dependably. our this and by do of control we've of teams software and affordably into the age function by is driven We it to This of transformation. platform. both And core Smart Network. results are by after our Experience connected all Experience transformation. this

capability deployments in their capabilities software things of for the They creation services the and this control full that users innovation, all applications and of platform our of have command and like are applications. enabling connected of

super engineering APIs. by They're customers. transformative powered of the create software new teams Our brands Pareteum of development daily use thousands new by our cases, our solutions and and are used and

which of and world the person mission it. every transforming the are connecting with in the of we ease communications developers customers our our software use everything, By and

haven't fully hard much our do all work we heavy and aims any of laps lifting in However, to have our victory achieving aspirations. still We and yet. declared all of

Our customers, needs, everything. improving continuously each on clear their get with focus a and up teammates day

We so well that, worked for to which doing us. continue has expect

achieved prior The and six analyst ended and XXXX expectations months largest achieved disciplined and for these for of indicators because this million most full XX, has material during EBITDA profitability six are And June also execution of EBITDA $X.X material We results XX. June of to milestones $XXX,XXX ended previous months a QX the quarter Pareteum our QX. produced the for focus.

up a quarter-over-quarter already increase is QX full is $XX.X quarter million. a million, performance and to $X.X year was of $XX.X revenue of million Already XXX% exceeding Pareteum’s noted guidance. noted previous revenue $X.X revenue materially adjusted from EBITDA delivered year from EBITDA million million a year prior $XX.X million QX under our that results of We the quarter. actual XXX%. of to the XXX% is increase And mentioned XX% year-over-year delivered and ago. for from $XX.X This That's exceeds significant year's This as I've of million a that's significant increase we us. our our sequential increase $X.XX of just a ago. up XXXX our that's

customers XXXX expected global and model seeing to momentarily. inherent these are the the upon raising exceptional for you from year and communicate which our that's first Based are commitments results excitement we the and to I visibility will full business guidance, of results, our half we

continue the expected our expansion. and reflect is results the all Pareteum approximate our which services, experiences provide are of customers how accelerating strong This communication capabilities we great financial to intersecting Experience which core X,XXX Pareteum’s demand, Network. Cloud These worldwide. with customer is Smart are strong to These of

additional milestones in the for two QX also major company. resulted

inclusion profile has the made community. Russell in reflects the and XXXX first Pareteum was our investment the in raises Inclusion the The Indices Indices. progress institutional our among and that XXXX Russell

at was Nasdaq on second Pareteum held Cloud. May We Day of our previewed at Analyst commercial the The XX. launch Experience Pareteum this Power

customers family integration flexibility Cloud The the this API our growth services platform. and recurring Experience our Our through acquisitions Pareteum us analytics, brand through and SaaS based platform unified base. to model. in and long-term the under engagement, Experience opportunities software-based clear cross-sell path successful Cloud and combination significant strong a mobility, of mix richness represents customer a up-sell of powerful one visibility a and and Pareteum provides The its into achieving earnings revenue business gives support recent revenue intelligence of This and services power. significant to customer and

and the a now single through one accomplished software of now is unique our owned which occupy services. communication position limitless over added networks. APIs world's that We is unified the global value provides offering unified market control platform scale This and a largest in leveraging our

missing the Customers Experience layer marketplace. Cloud precisely are because represents in choosing the it service has Pareteum been that integrated the

their With customers customers and to Pareteum direct provide their and at customers to its digital our to this services totally mean by delivering a integrated fully Control I by is shifted controlled best. transformation has This brands, experiences solution, customers. demonstrably end-users. and the managed our

one fastest discreet is growing A this of our connected serve Cities, built well. applications. segments us point Smart illustrates Smart devices to of a City fabric for

enables streams. of their City control together Experience managed Our these one by management while Smart simplify platform applications creating application. to administrators control services and application be brings and delivered these enables to value each unique revenue operations single Pareteum The Cloud new

and streets. through that advertising for itself dynamic added has planned water on Cloud have we streetlight. the control in screens a Wi-Fi connectivity providing connectivity to also and U.S. in The efficiently the connectivity, lights for and Florida, the the example, Experience which and are events on community functioning ensures management monitors For every streetlight while provides levels postings

in street Network, collection deployment smart are many parking in Another systems, waste capabilities Brazil our and for particular using more of our example meters, apps following managing Experience Cloud these and the customers planned this water enablement deployment. devices for IoT Smart

beneficially reduce and We have Pareteum. municipality a the customers initiatives. their to win is services, improve growth and clearly costs, community It their win environmental Pareteum things. a This doing citizens. this win good clear our is their management Power for – eyes This is a contributed ongoing helped of for for we've

on strategic Cloud deployed Deutsche the specific citizens agreed Experience to Smart the infrastructure. and and target This operational customers deployments and at and compelling Analyst Wi-Fi is These and systems Day, enabling our very attainment. citizens with are ACN, Asian forward, their and successful Network Smart an in insights through based to in the Smart Experience Cloud businesses Power our in Network. the McKinsey train their such community model solutions customers connectivity City and of their their as City, others, implementation Telekom, bus Vodafone, propel a share maintain Pareteum In with of why assisting services. connectivity our This enable into Kyiv was to providing advertising us Ukraine,

Pareteum’s Pareteum’s of is and relationship positive extremely participation and been has by and customers excellent Cloud Experience accelerating rates of are our our Pareteum and vision testament adoption. the with increasing power momentum of support and global reception working Initial in the our evangelizing platform we to encouraged customers. their a customer

the journey the daily of good customers. cloud things happy our and validates do shifting of the on control each Pareteum make customer's and platform powering of communications with work All believe one strategy and teammates single to future We diligently a successful further our to strong always. a unified reception to

growth that Continuing the through to the to with sales visibility you strength relationships, some are pleased customer I'm share things our of now demonstrable of efforts. our with driving

subscribers. success wins. QX largest for company, MVNO Cloud search Network the service will backbone secure Cloud’s the company Wi-Fi global world Experience The and is Smart solution our its Experience coverage expanded use the Smart MVNO, for an and some in for for will their global Network and its Pareteum as Experience our Internet Here's sister their Network key enabling and fintech and will Cloud launch of company to advertising use in connectivity, connections use Smart serving which U.S. U.S. Wi-Fi A brand,

using loyalty deploy a stores. initially X Experience Throughout before Tier significant will to mobility providing on to experiences Cloud very and focusing entry retail create A leading targeting this In into markets. IoT services more meaningful IoT launch extending personalized Singapore its alerts, upon enterprise other MX so to offers company company in assist discounts and CRM mobile presence at it's operator Experience enable their and its customer European deploy the customers markets. Asia-Pacific locations. brands instance, network to is location Cloud shoppers will Connectivity and Asia, to will partner consumer, MX

Moving of Devicescape a our earnings the highly granted XX an leadership. acquired portfolio on, plans last From and we IP product solutions of operational standpoint, software complimentary are a strong our well ahead caliber and including call, set schedule. Devicescape patents, attractive second in executives as integration discussed in brings quarter. high

Cloud now our executive platform and team including offer his Fraser and Officer. Dave CEO, Gordon, and as former Experience Devicescape’s excellent for serves product John leadership Dave Architect, Chief Product portfolio. Additionally, our Pareteum’s Chief

shift indicative Now this the a the to new important it to revenue. using non-GAAP we've And to in looked I'm needed provide and business. sales, of of metrics going discuss is is methodical of its intake orders began important XX and recurring called discussed sales that as discussed and number. the to a beyond contractual revenue barometer drivers revenue billable in a our backlog, the month specially monthly – are We've revenues. backlog. transform view – the magnitude, up This we operational simply several and that simply as which, are our building contract under conversion which We value metric as a we growth company this XXXX been has

number, we month end the ended crease strong for million, We're revenue and referenced average at new quarterly and performance. the leap commitments demand also the also a over quarter. XXXX. a started that very of This million. QX, the $XXX our it's you the customers, inform per we've executives proud from teammates our under particularly that stakeholders very forward customers, of Putting milestone This understand day strong very perspective, sales the XX demonstrates contract our contract when opportunity billion. at from in of executed to sales the magnitude been help $X,XXX company has from metric one their backlog have useful we to as business way transform sales our $X.XX pleased secured backlogging we QX on into stood vivid whole at the quarter our I'm this to

revenues. as has the its order conversion us metric. internal backlog significant be external now and However, orders billable provides replaced We purpose new new now sales and metric into sales transparency XX It month served can now their growth into and will expected an coming successes strength periods. is guidance clearly and indicators see Therefore, it results growth. which financial in continued and reported our are the expected in our our their of the quarterly the revenues strongest provided annual

of retire report it performance QX We and this will as longer key no after backlog therefore formerly year. a indicator

of performance. providing and These we direct dollar we operational providing time-to-time may include to as be our net total connections, business. focus connections, and how metrics our indicators metrics customers more leading These other day-by-day the from demonstrate We may quarterly our total the may Now, of rate, when and will include expansion performance. on to they meaningful business manage business adds churn. quarter metrics indication our

was Our net QX reflecting XXX% our on light up-selling our expansion dollar cross-selling existing services this focus rate year-over-year, and laser is customer base. with

and is second of from the which of of term devices the increase at million devices X and year-over-year usage connected subscribers and quarter connections. quarter a million connections, up our addition of over this this increased connected in a net Our to XXXX, in for is total X.X on end million XXX% their the XX.XX devices QX, is

is all revenue pleasingly less the X.X% than across all and service low, that's churn business. annually customer in sources segments it's and Our of

churn our with low ability the expansion Our to high highlights our demonstrates paired services the we to it of scale provide value and our rate, customers the dollar business. net

our with we results leadership and The about upon our management Pareteum’s summary, executive future. customers very are optimistic our about team ongoing are and sales. In about very based We're delighted bullish performance. now

to in you our Denis the to few Denis, of yield come will followed for I guidance Now, we'll and his if then moments financial please. McCarthy Q&A. review discuss by will, performance, a back

Denis McCarthy

the call thank and you, today. joining Hal, everyone for you Thank

very report second we're along for million, that XX%. with of gross the mentioned revenue margins achieved pleased $XX.X Hal As to of we've quarter

consummate prior milestone expectations. $X.X to million produced those months is and $X.X – This largest the prior it Pareteum our and completed result full XXXX a a However, the been six achieved is completed previous a during respectively quarter the both as analysts as June quarter and of for EBITDA ended dates. has million XX, execution quarter of full

Additionally for share. June common of $X.X have the we XXth, three of non-GAAP operations from months per $X.XX income million and ended earnings

acquisition organic our the These is accretive, stock-based million. accelerated Much achieved over we growth organic margins iPass the restructuring majority it The and compensation $X.X have EBITDA of costs million or an combined quarter of not adjusted of EBITDA Artilium gross approximately XX% and XX% closing total was but We $X million to of businesses. well. and growth Pareteum acquisition, drove Artilium as the of revenue. from of intended acquisition revenues the prior Adjustments to only $X.X adjustments of include and that are related and nature. of these nonrecurring in as

well this $X.X expenses percentage at was our and next XX% much continue We continue core and versus strength to million to earnings service stability sales opportunities of in revenue customers general and XX%, per or business rate our we team's over our as non-GAAP business ability new ability slower reflection our as as team’s our G&A than a those $X.XX XXXX, quarter. the periods. for over our continue of see our revenue A generate and and installed to reporting to administrative to growing of share delivery second get expect trend we of several service. of a generated the

we facilities. We we Appropriate activities. strong are to sheet to credit usual balance draw sheet, our the for and relatively leverage the that balance with continue funds positive need for from to feel add have do business we EBITDA additional the not capability quarter as a and to

of and/or opportunities. access growth based need our will pursue to our and on to be growth facilities organic Our acceleration capital credit inorganic

indicator growth. As are leading connections our stated for previously a

XX today at XX customers. mentioned, million stand of and X,XXX – connections million approximately under we now as just Hal and As

point only of XX connections. X ago single-digit months had and customers a less than we comparison As million

that this Our and balance come. we grow sheet revenue reflect and will revenue to for growth accounts receivable continue quarters to

of discussed of iPass. February As inclusive making on the closed full the previously, quarter iPass quarter acquisition first we second XXth, this

increased for XX over of we added customer of experience million this on revenue Pareteum Pareteum of annual XXXX alongside have newly platform base. which new of augmenting During which platform, into seeing has as been the And has the June an legacy the rate products customers, need the iPass are run three XXth. X introduced reached

Pareteum analysts areas. consensus has several exceeded in and expectations

those XXXX $XX.X of XXth, $XX.X $X.X estimate million those of the the expectations company and breakeven. sometime positive has in view the exceeds consensus, months achieved was would The Pareteum be for analysts’ achieved outperformed We $X June revenue ended of EPS and XXXX. per EBITDA and consensus respectively. achieving million of Our of share that for million, positive for over EBITDA non-GAAP estimates. half results million The three $X.XX EBITDA was expectations quarter, six second analyst

Additionally consensus million of estimates adjusted EBITDA by of $X.X over million $X $X.X exceeded million.

devices the impact which XX for their subscribers second key is over indicator network iPass end indicated the the Our quarter, usage the of of is our term performance connections, for includes acquisition. which and million of

our the we our bolster and we will guiding RSM with the development results a as second with next strong improve equipment. Milner and we of the processes. internal long-term financial us of vision audit company. to Squar our partner function internal quarter pleased expected for financial substantial control the strong foundation These are engaged results with enter the since of chapter quarter. support to our During first provide conclude, XXXX, They us us To

to I'll Hal that, the call. With to conclude yield back

Hal Turner

in raising for much. strong year in very exceptional estimates momentum our Denis, seeing full the thank QX results, upon you guidance. and exceeding including we're the we're our performance the our Based analyst consensus market,

to organic an XXXX for year updated $XXX now $XXX between guidance XXX% are that million. XXXX year-on-year. expected Our growth to revenues rate full implies follows: XXX% is from This million

cash and costs, net non-GAAP restructuring of share. growth expecting We operating and onetime earnings non-GAAP continued flows, EBITDA, income net per in strong are revenues, acquisition

operating onetime Again, and robust continue and flow. and EBITDA not net be revenue costs for XXXX additional are activity. any strategic acquisition expected growth strong to Adjusted throughout The cash restructuring their of accounting strong strategy growth fundamentals exceeding EBITDA are summary, will results for extremely shows we all a validation which for with our the pleased major Pareteum‘s of expectations. institutional investors. additional In QX

me, into could company I have favor misleading with marketplace, be the things that I company chips said some fear, show shareholder others create brief stacked as doubt. a our and As we observe to perspective wanted the and propagation share may Recently to a in also folks me in against a and the you. with Pareteum. segue Q&A, uncertainty of We bet our see untruthful Pareteum

a our and trust results, This teammates strong every right show person have observe bit our over for will Our continuing little is more, business the by for me. Pareteum execution speak we the that we to the overarching things consistent integrity driven do to And about we of thinking apply is and area our themselves. continue the with to all the growth stakeholders. every of

We remain are, expect we to strong very we about have bullishly Pareteum. been and

$XX not when growth does just revenues Our forward have XXX% XXXX of personal stunning as we've QX business $XX.X of of growth million, with company just to compounded is reviewing execution. and doing growth are revenues our transformed rendition a specifically million, sort indicators intensive happen. very growth are that we the had in months, factually well $XXX annually. what shown. revenues that's staggering on range is XX short reflecting XXXX This positive. $XX.X think XXX% plan I a, guidance XXXX current were growth XXXX and We've of our And revenues were growth or QX million. million, Pareteum The were in evident, XXXX, XXXX

on work execution of Our professional their Experience our teammates our are business. a to Network. results all responding whole daily well hard are across with extremely the global Cloud basis to from our discipline and by Customers Smart produced

They mission, platforms, us more incumbents, a Network. positioned shifted most connected, inflexible have we're for the communications, doing we'd called is beginning the delivers And the just we're and for are of continue are to is Pareteum, us our Pareteum, we days This actually they things This in fulfillment importantly Experience profitability. this built managed for customers. they early intend of while power everything. Pareteum control us, growth and tell they're every tell in doing tell better increasing future we of us we're to and Smart Pareteum very They secure the it's tired customers. because connecting best-in-class to them, with dealing Cloud services. We good person selecting our now, it it, uniquely revenue the better

Vic, operator Now you with from to I'll Christine, that, call, are for on lot to Vic, going Ted. yield Denis, please. Rob Rob this our Christine and and QX&A a hear with

Operator

our Oppenheimer. we'll Thank question first Tim you. [Operator And Horan from Instructions] take with

Tim Horan

great offload, they and a assuming us and contract, guys, that or the questions handles must color you quality. me. happy products I international of you am is quarter. large company the and with around trialing more using a that. to some services? technology they they're Thanks I'm Two roaming Wi-Fi the brand connect contract be? – maybe for awhile And for been you Denis, But from search the pretty a can for and that assuming other have –how new that's give maybe can can new And use

rest to the like of you. And then the receivable, can look and the again the comment What for on you seem that trend Thank caused year? that grow just might substantially? what pretty Ted, accounts

Denis McCarthy

give yes short-term a do more before. out Denis that expect – enterprise but with has has you it grow of is company quickly to to little I done give that that us her here, quite work before color a us that would can yield customer, sales on – I’d say substantially, Christine We team. the come

Hal Turner

Christine?

Christine Braelow

to do so. so Thanks Denis, yes, happy

base. number from can using enterprise. of enterprise the experience is their a also on the cloud where has we're it own years as customer review else basis So terrestrial with are possibility indicated is the what focusing Denis that it we at They is this look currently we network, had for is tremendous a the and so initial for global growth service and Wi-Fi with in available has a employee smart bring as our an and

a have and with So rich history this long enterprise. we

Ted O'Donnell

Sorry.

Tim Horan

ahead. Go

Ted O'Donnell

I think also on company, We it. could that of invest have an MVNO brand they might search

have you also. offload, the the So MVNO – I won

Tim Horan

Okay, great.

Christine Braelow

Correct, yes.

a So MVNO, well we're relationship base, as our employee have own with offloading is both. Wi-Fi so as with it the

Tim Horan

offload, quarter or kind the and – it of… that’s is at MVNO brand in was that new all that

Christine Braelow

Correct. Yes, new. and the brand that’s in quarter it is

Operator

move question the that that, IR you… enough on to or we should is Tim, Okay.

Tim Horan

Yes. I win connected of just did the the guess long they do for technology the quality a how – trial handoffs? from contract last that you based to handle I mean, the on Thanks. that on did LTE to Wi-Fi?

Christine Braelow

Sure.

it And for was over won trial on base. experience so quality, yes, So of quality improved definitely were minus they their about plus for was months looking the timeframe. user three

Tim Horan

Congratulation. color then great. receivable and would be on the accounts Yes, any Ted

Ted O'Donnell

the increase this with coming AR If we third then plateau probably that the for year, to then and down process look collection and down of fourth continue in QX and come just bit then in a XXXX. of start quarters little to of

that going and and and we ahead comfortable very half looking first ahead were vigilantly quarter and very go we're to but – ahead this year into this at the we're lead strong of of next year. and go feel ahead sales going second collections the So the that going will generating,

Denis McCarthy

just Tim. it sorry - And

Tim Horan

I the are where on to quite about made share as would we and elucidating. it comment Denis, levels? in this that with you was we auditor our want ask us thought this

Denis McCarthy

Yes.

growing that months to which Plateau year a was look and we first and our $XX Ted processes I grown of were with revenue that where and receivables – come mentioned overall really – third that had continue then the fourth they the to the that million, with nine from late what quarter how million over think and strong to have of feel space and last $X quarter to and effectively comfortable reflects see at comparable to companies next of internal the and that they're are year. this reflects the company continuing the growth and they fourth will quarter in growth they health the it rapid over down had

Tim Horan

on as have increase lastly stable And just Right. that or debt relatively it’s expense that, or been decline? an

Ted O'Donnell

to a the We falling last this this going upon and certain timing go on future, of basically to continue but debt and and it procedures in going we're we're from and like in to depending $X.X look of first $X.X for and that same in and increase we in flat, allowance in right the this second did the ahead relatively quarter million current bit the debt the little was it million quarter, normal ahead now. then went go out quarter range collections, that

Tim Horan

you. Thank

Ted O'Donnell

Pleasure.

Operator

we’ll Next Sutton hear with from Craig-Hallum. George

George Sutton

guys. Thank you, nice results

So know one implement it one gone is obviously are, the to and need all of the with the business winning up. you you I that's challenges the of reasons DSOs have

So about anything ramp to you're And doing up side? doing the any on what can you implementation talk you key yet with team are the partners?

Hal Turner

it and you and standpoint. Denis, Vic the you want management account to customer to to then I'd on the fall comment like from address that since service deployment product in advocacy

Denis McCarthy

thanks Sure, George. Yes. the for question, and Hal,

us new months in who mentioned as a time joined very bear Bringing on the Gordon, platform, brought particularly from person improvements Carroll Conor and have John did that three market to last technology half who and two senior a the and markets We deployments improve Asia. we with, as over our Dave and cloud America software to Fraser in side Devicescape. enter with Latin into has our along delved operation Hal accelerated in the to

coin, we six our So rapid we pace over say as would we've months, the continue next nine add with we to the us calls accelerated to as inbound the do a the let ahead still have as lot sales and growth will ability what seen receiving see on the and demand I of Vic a challenge more major keep to deploy, marketplace. to now it for speak him our I'll a we're bit. But growth platform in

Vic Bozzo

Yes.

Denis. thanks, So,

the contract call delivery which coming but service prospect customer we So as sales through service is both in we're cross-sell, from in into a advocacy the the that's is delivery, down, account what And working moment is heavily management up-sell, for addition the with in function. identified negotiated. to the also build investing it's hand-in-hand being equation

And be sales so, envision advocacy, as force. customer large our generally our as to growing we

farm sales investment we management, So is advocacy services X,XXX customer our cross-sell accounts, of side to being Cloud. to most brought the and new particular, Experience the in several account customer all strong to the close merging messaging and together through side in candidly with of and up-sell Wi-Fi commercial the see from In have we in of our to base. really our opportunity

it's from see process on helping the growing, forward unleashing But customer then up-sell is our the future. sales and we delivery and minute And new is the key that's and cross-sell the begins team opportunities. into advocacy focused globally it growing and already through service the is

George Sutton

Hal, I what very in talk you very thought about clear market City addressable the overall that. your Florida Cities? doing example help be Smart you Super. for will the enhance tangible, to of Smart of was Can terms

Hal Turner

look course total And into a over approximately the billion, of when can. is I Yes, of we you of years about XXX market our it portion market at out billion IoT billion. down three XXX the that, take of total XXX addressable if of

billion next clearly address segments If we least that where you in, range we're down at weaving we start two the years. to can that the XX are, the in we think that

example, discreet let's demonstrably our a work which opportunity. capture to have as on huge will have with how to an who change better platform of really have only we I meter to you more a water could applications, profile the partners say, will working tell that So we're upside. the reading this understand fraction control

that is actually Cities, do I've my way Cynthia but Vic to you as to is view. given it call the like may at look applications, Smart on turn with we to Vic? individual just has at with we on look and the what I'd So it grow the

Vic Bozzo

what recall as and you it is Cynthia on Yes, said, and described to if as we just opportunities. echo described the fabric Hal call, a we discreet, it, of connections

discreet segments not And so streetlamp, an market, of in it's applications been each being is groups overall sell what multiple post who is those products. that lamp, run Hal that are discreet but there those that it's that if within but and different within is describing cases just and light there by take that – you many within – applications, of

to really So control we single see the give that. mechanism opportunity one to

as market And pretty grows, think is, mentioned. accessible it the so but it's as I Hal that large

Hal Turner

comments might and the said. better Vic size that that any on Cynthia, reflect And the I've market things

Cynthia Lawton

don't I add. think I No, to have anything

Hal Turner

Okay.

George Sutton

in it backlog I it if relative could – away increase going know significant deals as you many opportunities a One curious us and is give in I size one, go you to within public are indicator, if that, significant but smaller seek how sense of I'm And that just other a quick to signed? quarter-over-quarter. could a the was

Hal Turner

to turn going that, he we have And of that enterprises Rob Mumby Yes, Remember IoT. service to the vast and since we I'm for segments, majority drives it. providers, can. communication three

how give Rob? spread that a So out, Rob was flavor of can you

Rob Mumby

have well Yes, in didn't sure. medium we – ones. one have deal large several have a we would Hi, general, some smaller month we I say then that just and and even

customers enabling with from a of we next and WhatsApp you is small in means, all in was where businesses know from. signing, So interested of and diversified, we're standpoint, point want large a we're at both. it's mobile we're at because, so it customer look large just garage all mix risk coming some the changer not you but on shop by sizes game And very destruction a a counting never one

that So does help?

George Sutton

That's perfect.

Hal Turner

very your much question. for Thank you George

Vic Bozzo

to add George, what I just just one thing Rob said. want to

to whole sales to A this – the in you that transaction upside. because a these Rob that's I on that down a quarter, going to of into discrete XX customers kinds we're sales. fall is mentioned what do to selling for lot significant day means that about take somewhere have of average and we $X the really growth XX good, the talking terms potential the really million $X that but in what about very, very are range, consider the real of million If

company we great Wing website, our called a potential about York company, On a and talked example really in of big, small be got really quick. a New that’s a it's to

transactions. So we're kinds looking those of for

George Sutton

guys. Thanks Perfect.

Vic Bozzo

Welcome.

Operator

Mike Latimore Northland Capital Market. from hear with will we Next

Mike Latimore

are just Yes, little color there? or great couple can regions little was more Thanks. growth strong Great. it based, on or really quarter, you kind Maybe, broad in which sequential were very a are big guess here the more growth give Turner. Just at. the more diverse? and then ramping the you I sequential there second particularly on results is customers of color a a of it

Hal Turner

dig to want you the Denis, from that into standpoint? financial Okay.

Denis McCarthy

data in over existing growth do customers million strength those that revenue particularly during to but iPass And of our into to the referenced grown we significant customers Kingdom, up first, the run also dig roughly broad in in and quarter. legacy I some have sales Europe based in we Africa second prepared Yes, the from team notes, United the continue my customers new And $X very contract implemented they are very the see nice saw rate. the in it is specifics, that from three in XX growth, deployed quarter. to

So, based are Experience and the U.S. strong Africa with growth. the still a of as and phase, cross are sell platform, I we're maintain out poised of significant that well, seeing broad the pretty for new growth. would Asia are enterprise iPass in say we prepared Europe but strength

Mike Latimore

the how of And Just versus is fees versus that on great? subscription AI of else? little color sort something be that would implementation service growth, a much on

Ted O'Donnell

me go – let ahead. ahead go Well,

Hal Turner

ahead Go Ted.

Ted O'Donnell

in our ramping vast or as When that adding-on going up with the at work for services well. look services path, us is ahead are we that of ahead most us and of it implementation, with go majority new and ahead and folks going is

Mike Latimore

there? on sort comfy and think little the in should responding you in it a down then third XQ fourth clear then – the XQ. that what you quarter in just Is about be bit – to then going little bit we in that quarter? of Is And plateauing a and up talked of then

Hal Turner

in that active the fourth ramp into well we third up as quarter, as now, right upcoming then Actually, ramp few good level ahead go to be in it that probably as this are the questions and more start of especially back coming see year, into and ahead on to like quarter – starting then now gradual in so a that amount deployments us. end see for the go we're the right ramping we're would the coming up of same to quarter right a as this in first we and quarter next of

Mike Latimore

it's Okay. that can based, you of the sort good we think on what just I – sort – of iPads kind about terms haven't what's ballpark through And other? Experience of still thing? many of know really gone early, into in cycle the yet, of too know should I kind an but Cloud on a like you average sales

Hal Turner

that take please? Christine, can you

Christine Braelow

Sure. Happy too.

really where most getting traction the are with multinationals. we're remember So,

making a decision little So organization larger time frame takes bit in a of time.

year. point, discussion So up a and in decision I end run POC six likely we way were a on the track short-term, so the where a the we'll towards the think the think from we're seeing that that and to frame of at so, months now actually this see And or months right we're two time QX. I That's next then a seeing. a is anywhere about in

contact single pointed – It's and of it's interest the bringing conversation out lot side. have. very the there's value, level it's of exciting more to had from point enterprise tremendous a We're a an Hal as exciting

a just it's we're proof. and very will expect those tighten those and I So a overall, having to reception. conversation little have mature good we we conversations seeing because cycles wins, sales some up see that start But bit as we're exciting to

Mike Latimore

Yes.

great. like lot. Sounds a Thanks

Hal Turner

Thanks Mike.

Operator

Street Bruce We Goldfarb Instructions] [Operator will Capital Markets. now Lake with hear from

Bruce Goldfarb

largest great terms Most you lot to is months? Denis, and XX have – of you see just Hal, changing Do made, of under Hi revenue revenue Ted, – the the the Guys. the in revenue a that Everybody, questions. under contract, guys most your next of couple quarter contract on over with a customers. progress congrats of all XX

Hal Turner

customers revenue under closely, XX% much as to contract. mistaken, going the if that I'm under are not that correct? largest And our is actually Bruce, Yes. Is we believe, represent is the now total I customer of pretty than really less large look at this Dennis, XX%.

Denis McCarthy

get norm great to the base. the become in And contracts, range last, diversification call base in our Hal. $X as it they see XXXX. XX% to have likely alluded customers while I million overall customer. the XX closing largest $X direction that as an drops Absolutely, continue think larger implemented, And a continue the a of to our in the earlier from now which in speaks it range that XX% the to our have that part trend let's and become days, We and these of growing X,XXX to customer growth million XX% and in XX% those customer as

Bruce Goldfarb

Europe, it you one you kind given of question, but are then just or push weakness deal guys last out seeing some Great. the real are Europe in And any seeing strength sounded any you. just Thank in like delays? macro

Hal Turner

one you Vic, that? two might deals. of you tell the closer I I be don't you address any a can but can see to little or

Vic Bozzo

our on Yes, as that structure. our well. have of I bit coming affect haven't seen really will that we disruptive into say I new funnel entrants deal quite a

any be economics. macro the clearly what's we're is part flow But now. not that, on going right indicator seeing on Europe slowdown an could, in based that of disruption in that so And the deal

seems there's favor. fact, work landscape, more increasing there's opportunity competitive feels which like our In to because, it in

Bruce Goldfarb

got. all Congrats I've That's results. on your Great.

Hal Turner

you you we one question? have more so much. time do thank Bruce, think Thank for Ted, you.

Ted O'Donnell

more. One

Operator

Allen question from with of Klee final Group. the the will got day come I've Maxim

Allen Klee

the your can your debt sweet, and how what you us tell – at Short was the total quarter. of much end

Hal Turner

that, to let turn to number. I'll give I Denis an Denis exact for have but you

Denis McCarthy

XX. $XX the sheet as Sure. balance million June of on

Allen Klee

Okay. Thank you so much.

Hal Turner

Bye-bye, Well, with you Ted, to Denis, Rob, everyone much. Christine, Vic, we you to all call. Thanks you now, very thank seeing Allen. look so thank thank the course in we'll for joining Mike, I due conclude all and that forward much. want and

Operator

for conference today's call. your conclude you participation. Thank does This

You may now disconnect.

PARETEUM (TEUM) 7 Aug 192019 Q2 Earnings call transcript