AIRG - Earnings call transcript Q4 2021

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Operator

Good afternoon. Welcome to Airgain’s Fourth Quarter 2021 and Full Year 2021 Earnings Conference Call. My name is Jenna, and I will be the coordinator for today’s call.

Joining us for today are Airgain’s CEO, Jacob Suen; CFO, David Lyle; and Senior Vice President of Product and Marketing, Morad Sbahi.

As a reminder, this call will be recorded and made available for replay via a link available in the Investor Relations section of Airgain’s website at www.airgain.com.

the publishing be sell-side remarks, questions up prepared Airgain’s from analysts. management’s call opened will for Following I would now to Mr. like to turn the call over Lyle. Thank you.

David Lyle

and by that due and about those by future XXXX. associated good or conference I company’s today’s and the materially that Airgain’s of uncertainties management qualified Thank from This undertakes to circumstances this and revise events to to Actual call. be during future Airgain events these business. is results Airgain’s strategy, listeners any differ are conference financial the release will filings. statements of XXth, and as only date implied statements Airgain performance. the no statements after cautionary obligation this of statements forward-looking stated forward-looking forward-looking in SEC you making to update risks or business statements call, information date reflect operating accurate or earnings this contained call afternoon with caution live These everyone. could the forward-looking time-sensitive contains February and broadcast,

call results. this for a may further of including a to non-GAAP financial discussion conference measures. earnings Please details, addition, In reconciliation GAAP the release of see non-GAAP today’s include

Now, Jacob to to the our I’d like Suen. call over turn CEO, Jacob?

Jacob Suen

out. around progress as and Thank XXXX results towards outlook well financial made XXXX provide us we on update you, and start details then Dave color for we've you play commentary strategy. QX then everyone, Dave. our the as about the XXXX on with Welcome, financial to expect joining thank executing and call some will today. an our our how I'll

particularly before half, in began revenue the the to first our The started materially impacted average Looking In quarters the company's half half business, of the supply our about each over back our where million shortage we issues stride we $X we year the believe in supply of global in we in revenue second our highest lost over the history. consumer the revenue. quarter, the business. XXXX, first business, two $XX in shortages million to impact hit really year

this resolve is year, the our that indicating in to revenue starting consumer of we're seeing QX itself. market supply into Looking backlog shortages

buildings total fact, exceed history in already plus this backlog the the in point $XX.X QX In our million, in at quarter. strongest

been you company market over automotive and an consumer markets. If internet two back focused look company last company years transforming larger wireless integrated from have we focused plus enterprise an faster-growing that technology the on the systems primarily and on embedded the to

we company a that You different can dramatically today. are see

years total consumer ago, XX% of back In year end Looking almost just three total XXXX in revenue. XX% generated revenue of revenue market was Airgain's consumer our XXXX, fiscal only revenue. market results,

a in a over of two the highest company's we our revenue, the smaller from other revenue Looking revenue enterprise decrease the with XXXX, product the grow. market our consumer outpace revenue in we markets history. expect growth ahead of to XXXX finished total percent into growth But All-in-all, that $XX the as markets. in revenue million growth will will consumer and will result market we in multiple believe the

controlling which GAAP growth global finished in non XXXX with show supply significant drive will basis look associated into behind shortages. $XX.X XX%. closed higher from on With XXXX. let's January incremental XXXX. non-GAAP us, which included acquisition, Our costs a on million expenses X, on discipline significant the just with margin in NimbeLink what in under gross pressure Even in We operating was our expenses,

U.S. to benefit market from market, to the First, expect we in our NimbeLink enterprise fast-growing in our industrial grow as IoT, products we or branded a continue

growth additional internationally. the With expected

the majority cellular truckers, which is Skywire the modems material lines for to revenue game revenue to product newer begin We to of contribution, show generate a while market. one expect assay industrial our should in of IoT continue

we with a platforms as we in grow AirgainConnect its XXXX begin expect first on our service. to renewed AT&T product nickel focus range to partner Second, on going

from as began end to service revenue, related fleet the products our providers customer especially shortage Third, demand Fourth, our to from issues revenue in resolution rebound our supply we antennas expect transitory resolve expect COVID recover shortages, Wi-Fi consumer our like revenues we supply as or strategy. to arenas. to we plus to our and branded our traditional specifically aftermarket and themselves. for reductions enterprise customer XG product Wi-Fi major expect some wide our a portfolio products the as X Wi-Fi we we first growth venues large stadiums sales global launch by to revitalized have refreshed see system into Fifth, enterprise of

Before I product cost reductions we are on think focused continue note into profile improving it's I for hand company. great that setting We've it the very be gross products. progress of made motion margin important to our lower to margin on gross over our on today, several

we term, aftermarket products on with Wi-Fi, like improve high in price can prospects growth So, IoT. the and AirgainConnect industrial fleet, that the margins longer over

will aftermarket One QX of manufacturing, of to that manufacturers produced as the facility manufacturers manufacturing manage and us costs mostly for where ring are shutting scale lower lower as allow external order be lower we're fleet by our well move that here to down them AirgainConnect in to contract to to complete through in new In America this process significantly. allowing to year. costs parts North in-house products inventory our expect in for focuses our procurement. many also manufacturers contract in process that concept We is efficiencies Arizona and of us moving manufacturing vein, the This to in

we we manufacturing supplier the of system fare very systems provider. from highly excited in XXXX We're be integrated COVID ageing a have prospects all contract as transition the as are about year-over-year component experienced our really manufacturers. in manufacturing considerable growth how XXXX. antenna by facility no internal especially for in as our this well in All-in-all, solution will growth and the are supply action, well a we impacts pleased as encouraged will hands shortages momentum Following during wireless to

system integrated most have or years wireless We begun the new to. developing which ship products, have spent about are to last of innovative few just

be will growth. laser-focused on XXXX a execution So, year and

would the Dave? Now, turn through financial to highlights. call us who like over walk back to Dave will I

David Lyle

quarter from you, was shortage. global Thank QX. from $X.X million Fourth consumer weakness QX the shortage. Beginning million QX, down XXXX $XX.X was supply from supply in in revenue primarily million global million. at Jacob. down million, $X.X Enterprise the to to weakness Due revenue finished from $X.X with QX also due in to our $X.X revenue,

QX aftermarket million Automotive $X.X about NimbeLink enterprise was million in value stock-based fair intangible both to was for $X guidance $X.X mostly as million products of above to about sequentially our to GAAP midpoint loss range. of mix in in acquisition loss Excluded expense, EBITDA non-GAAP changes. QX $X.X top $XX,XXX Excluded was non-GAAP declined. $XXX,XXX revenue for margin Non-GAAP product of operating revenue. Wi-Fi NimbeLink just industrial well million from our the our from expense XX.X% as of from growth gross acquisition. of grew guidance million. the was previous $X.X related of contingent non-GAAP from operating range. net related consideration Our the assets, at revenue Adjusted IoT favorable grew of $X.X previous our Non-GAAP was amortization sequentially was QX as and compensation in to and purchased QX million QX end QX million about in in gross previous traditional $X.X range, in intangibles. saw was right fleet guidance our amortization and due AirgainConnect margin primarily products just negative net we the $XXX,XXX above QX, expense

per $X.XX. GAAP per Moving was our was earnings per share, share share non-GAAP to loss QX $X.XX. loss

changes cash, restricted $X.X equivalents, mostly as the to than million $XX.X in heavily purchases, of million, in cash $X.X timing the QX in loss cash $X.X working QX operations. also as from our and non-GAAP associated with million the Finally, inventory but quarter, approximately negative million of timing lower due totaled to of quarter back well half the about the related shipments toward capital

cash potential the global working working needs line enable associated topic we shortage to supply last ongoing $X the week, with on a place in put incremental Valley of Bank issue. capital us address While adequately with Silicon capital million to

million like in the be outlook In less shortages. for impact or XXXX. we the preliminary we of $XX.XX revenue million of first and $XX with a million of coming materially provide QX, I'd at of the quarter as seeing $XX.X to product our the grow midpoint range and of supply to recovery most expect the Now, range revenue are from the to from consumer growth

Excluded revenue. amortization a in non-GAAP non-GAAP gross consumer intangibles, points plus XX% purchased quarter our as and and higher in product margin acquisition-related first expect expense. margin be $XX,XXX in or margin basis gross XXX minus $XX,XXX see the to about from recovery we We is compensation of stock-based from

of At in of midpoint expense non-GAAP expect in total as would QX costs, With $X.XX negative our of balance in positive $X.X We to is midpoint sequential we per engineering we purchase well sales expect from on guidance, $X.X acquisition organization about about the from to increase QX operating about expense cash related of cash, program, from equivalents, expense loss expect stock-based changes. QX cash marketing a loss Higher will we we EBITDA intangibles. million. of of our on talent our minus management $X.XX. timing capital and or non-GAAP is as estimate execute and expect the operating from to acquisition million restricted reset basis, At per growth Excluded the be and mostly in benefit to and guidance about non-GAAP GAAP regard expect to operating development $X related a as XXXX QX adjusted annual the the expense about share $XXX,XXX. working be million QX be bonus share plus to $XXX,XXX to we our ensure by prospects. compensation amortization cash, and XXXX

back it turn over I'll Jacob. Jacob? Now, to

Jacob Suen

Airgain an component sustain the expansion antenna supplier and long-term as with our wireless to profitable are the system progress provider. we performance Thanks Dave. wireless markets, I to a successful that well position made reiterate pleased long-term growth. in would transition puts we company, believe lucrative as our that we becoming integrated high an a strategy to have in integrated system in in the enterprise We automotive from have into confidence like

While floor new the taking into trend are we're shortage world the growth continue industrial for with to product some IoT, to our already XXXX. prospects connect our supply your that mission products With expect remaining Airgain's Operator, customer place issues, operational the seeing and keen optimistic we're a demand With and after-market instructions. we're beyond. to innovative this about integrated rising ready to on that, XXXX on still were quarter, in delivering and open managing systems. appropriate innovation, we to positive in satisfaction, recovery service optimized continuing for And and efficiency on our wireless questions. provide please AirgainConnect focus

Operator

on Thank much. question, Michael B. Please very line Riley [Operator Instructions] Michael. First Thank question the Mani go you. comes of you ahead your with Securities. from

Michael Mani

for for guys, ask My Thanks on letting first is of Hey concerning Craig. couple gross questions. is us question this Michael a margins.

you you So, -- us at see as walk and outsource low were could guide XX% maybe XX you through the a contribution next nice just to wondering gross if how back just was could even we of I you the And quarter. for relative XX% we benefits us I potentially Just walk mixed to manufacturing, level? trajectory ago, supply throughout the see XX% And headwinds? the of through playing that was year? get out how margin wondering levels. back year also if could

David Lyle

them on Michael. is Dave. take This I'll Yes,

QX, on revenue We we're automotive, some as the for we profile help than issues automotive getting into the continue with to to ramp products the We which more we'll through the global little front. starting supply gross has and on to grow. enterprise a On had get consumer the should a higher mix new going historically gross and us consumer product on into front, enterprise. consumer gross a beneficial beyond revenue growth margin going think we margin especially and said margin front, shortage as bit QX related see final the supply

on depend both terms In margin how lower it'll fast we and big rest grow the profiles. of which year, and gross have really of the I think automotive enterprise, how

in more we I to margin, see that to back so range if And more think bottom-line grow we more case, much but XX% dollars gross from can into In going any obviously, we're get this I gross do perspective. rapidly, falling year, a pressure on the margin the case. think

Michael Mani

on was I and you. promotional get you any if et updates updates customer wondering my opportunity dynamics Thank concerning to funnel is activity helpful. sell-through question AT&T? Got That's can it. next And cetera? there AirgainConnect, with the were your And any

Morad Sbahi

afternoon. good This Yes, is Morad.

that I -- take So, I’ll can one.

last continuing really we means the $XXX same $XXX and It's it's very that's for then AT&T promotional -- with effect started kicks up and customer savings total. very, beneficial AT&T quarter in has year which So, that this activity provide we us. to model very in been for of the be winds where in the that paying $XXX, cost

going a I are are like the the increased see to call, So customers showing mean that more of color urban has And has showing promotion waiting the starting growth said for also in customers that earnings but we've done these what way, AirgainConnect. funnel in that I fuel for customers interest it by changed. those AirgainConnect. substantial that only that is, in are really it last us And what kinds been not the -- is up that to we of

you're over the X,XXX are that units. or mid-hundreds of that of about the And low are to so order customers rural let's -- if say kind units these ordering, talking customers hundreds, tens

very really, healthy really, it's us. So, for

and and rest really we I like continues. year of it for started, that we're It it's go about the half to of XXXX. said, and excited on the So, year second expect continuing that this trend last

Michael Mani

you. Thank

Operator

from Our Please Karl. second comes you. Ackerman go question Cowen today and Company. Thank ahead Karl of

Karl Ackerman

understand to Two you're I your manufacturers. guess Yes. couple have last you've quarters. that for manufacturing I Dave, has and inventory strategy, you NimbeLink internal sales contract creeping if with guess, been supply question, from the I But for you products enjoying future And why I your throughout over second, address year of Thank may. faced you And the external first, you. when endeavors. higher then think, of pivoting best moderated? luck me, working I in questions shortages

you backlog been you have you you confidence volume achieve today? commitments lock-in can So, to able the that billings that have give and

David Lyle

Jacob pipe can start I'll and you in.

This sure First contract plus facility great I'm of Karl, we're NimbeLink each more That's to in related a products, is antenna to us that on your thought in more contract you, historically, it's some we'll been higher in manufacturing, all, to to model about not contract as to help risky is that going levels problems terms parts ways, our and as we've actually global right bump you. that we've including products, that's and decision Related change. used reduction. our again. done variety which ahead AirgainConnect should the a procurement. to into buy shutting manufacturers ahead shortage, part manufacturers. and thank with moving for on the down related items go the inventory branded the a have of would more That that supply was question we To well our conscious seeing working inventory facility. other of and now, Arizona

you And and both it demand. inventory we total a in have NimbeLink, number, of so is I high that characterize confidence AirgainConnect would large say portion which if

there. a So, next products. in that significant though we quarters, couple we XX especially on feel in I pretty number do we're over pretty see as good the branded reduction plus moved going that AirgainConnect manufacturers contract inventory think to of

Karl Ackerman

had. I could you have of longer like your to how growth you But in last earlier throughout so willingness you. both your allow demand, opportunities or the level automotive networks? ability and you think in about I I that guess That's you guess appreciate backlog inventory billings, some that. commitments -- remarks, with spoke sorry. enterprise end also on about the fulfill on to the I contracts do but question that you XXXX, of engage on across can the as prepared to term and about sounds consumer, just the some think the follow-up Thank which speak just you to customer that you if have helpful. Then you it work I mean volume today. suppliers,

David Lyle

a it gives shortage like high inventory, grow lot been of -- significant actually to We've said, we a all issues. on which us of has where XXXX, lot care have of NimbeLink we Yes, side have inventory, I Again, in some question. historically, the biggest trying our pretty backlog the finishes through global we issue for pretty confidence. supply

would bigger growth no our even be that seeing to think I grow there NimbeLink within you're was if shortage, but us supply continue that business.

a just we which pretty there. hard year, the confidence backlog gives So, in confidence high terms us of have lot for

the On of AirgainConnect kind the stages. part I still, would call other its that's of side, in inventory the it early on equation

-- trying still like to is business. demand pipeline, talked big. grow and pretty deals to sales We we're got Morad demand, The about We end sell-through. that is get the obvious. close So it the just

Michael Mani

Understood. Thank you.

Jacob Suen

problem. No

Operator

Please from ahead. now open. Craig-Hallum, is Stoss your Anthony line go

Anthony Stoss

all Thank guide, chain. at you. sequentially XX% considered Pretty guide, up things impressive the midpoint especially supply

that the growth the Jacob, what's much rate year to the think and business backlog, pulling be think maybe next? lines grow? for grow. can you Dave's And with for talking kudos Do of a you business how So about And to might all what IoT rates I'm into generic up ballpark expect segments expect maybe or Along this QX? you of heading off. you the curious growth what those do range your question significant

Jacob Suen

done about the And way, able having you joining supply QX, us, has the here. Tony. year. to recognize of the but you'll the that overcome Hey, and Great a Jacob to really I rest good questions to that issue. only good job we're looking phenomenal not be It's appreciate that by fact the team shortage the

demand automotive. you and with tell the is consumer, that enterprise with with the can three the So markets, have I we high Thus thus thus regarding customers. the from what do

in going rest indicated, we consumer fleet, mode, QX, a be hey, product, that on side, year. able shortage are, certainly three demand, get you to is sequential helpful and -- a recovery I the we're lot And our we itself, The to but AirgainConnect the well, to, the are a the But going see it with that's going then be it's overall not that, also of the is high. also I we the while to demand enterprise, brand. much seeing issue for all some NimbeLink able not the for of shortage IoT in seeing we certainly with to Now, that's but dealing tell industrial only In side, it'd automotive about is will overcome. starting be -- regarding feel greater with the across we're parts is supply still as fact that as got issue quarter-after-quarter, all aftermarket -- resolve segments. the the growth also high growth to three market be to strongly and do on

David Lyle

So can I tell-- what

Anthony Stoss

Okay. ahead. Yes. Go

David Lyle

So wireless to the where business finding that's that with trend said direction I supplier add of that are more was system integrator, is those returned gaining are supply. the just that lines customers the in our seeing for something or that what consumer Jacob were less our all company was growing, to become offering, what to that, going happening. those access to normal more to we for And or products set or is that

in So XXXX. what's in to really drive happening that's what's going

Anthony Stoss

there's be on just internal in any not make done qualifications product be color case building extensive a maybe transition that handoff this parts, those Are a side, would sure for it to it's side. hiccups Have follow-up, with to you the then manufacturer? is lines you manufacturer couple and contract smooth? Do contract you smooth, this up the And smooth? helpful, contract to the any and Okay. inventory of manufacturing expect it's

Jacob Suen

Yes, again. so very good questions

not a actually redundancy well. manufacturing contract one, So American our manufacturers. have we have but we couple we only North for actually some And new created have -- as

is with the serve have a they’re strongly as really operation our one then located do actually access of closely And to that the which well, so and we we backup working all in as them Arizona. team much other, of we feel are them, can training easy that, and

pretty just the deliver. And really quality be started sure about So to closely. they've able we they and able actually been product expect that good to QX in feel type last deliver of make so year it. the of we them work quality that type And we with

it why down feel already call that triathlons, something it's to the Arizona we That's decision get we our So we to facility. enough are done that want you shoving we've to have at. made to comfortable

David Lyle

a since then one from used, slowly we We products and like phased put Yes. we branded QX. the, the Plus Antenna it line on our kind first, put and another of Jacob the one approach larger where beginning product of Tony, says, did over

about fact confidence and We're high very have pretty margin. cheaply improve the procuring scale deliver they our us parts, just more through gross can we can pretty quality. buying So that improve parts, they for that high also excited to

I So there. think two sides we're going benefit on to

Anthony Stoss

Great. luck. Thanks guys. Best all of detail, the

Jacob Suen

lot, a Tony. Thanks

Operator

you. line go on Northland Our Tim. comes Markets. ahead, next from Savageaux Capital Thank question the Tim of Please

Tim Savageaux

a and follow-up majority as Thanks, mean, sequential growth QX. wanted segment fair into going driving assumption assume there well. from in the a if the growth and I'm afternoon. dynamics to gross of that your likely is other that meaningful impact that is that in any on margins good not recovers consumer, you're a coming situation Is vast majority, the way? I kind the positive sequential Or forecasting of is I has on to supply segments going estimation?

Jacob Suen

meaningful other in of across consumer recovery. is think a but product I No, consumer driving some lines, There's the like the nothing majority growth. way, contribution the of the

Tim Savageaux

this in calendar point, levels the target calendar to back year those back ended to consumer? with -- to an something $XX then the more, comment of likely million range there about which I just you started does well, XXXX. like to quarter a And normal. mean, in one Great. and a seem follow that the consumer was where get represents XXXX and I earlier by getting reasonable and At end have Okay.

Jacob Suen

don't it's more issues something especially, conservative, on we're be we shortage I the little supply line planning remaining. only on to, But going improve Yes, to even number, think I of QX expect our with it's margin. out still we off some both gross a but not contribute if growth, possible. top at there which think

Tim Savageaux

automotive, could for then I you me. Had a to And whether as AirgainConnect. a in more continue nice that how demand Right. like I Or kind give situation of on I think in that feel that maybe increase to as which And a wonder for at XXXX? guess, stocking you to attributed last we you're us whether uptick you seeing color little can uptick look needs of one quarter to sharp an the was, be if that digested? sharp can you a that given throughout build

Jacob Suen

We QX. fleet aftermarket a We're on past saw the quarters so. out couple bit to both automotive the on QX the suffering and supply growth of of shortage fleet AirgainConnect issue also to revenue little Yes. over aftermarket

large us. deals. And out those what drive -- Plus there. some see time on we it to we've And return little of got in this because supply can we've we saying we've the chasing, Antenna sales funnel our Again, going of to to we AirgainConnect, do for that But the shortage taking some on an starting products we've upgraded do really opportunity close to think we're think eye kind forward growth of business I redone mostly key in XXXX. bit that branded the got been we've think think this we're I keep should to a a grow strategy And through I products. terms of XG. were will

second think think should half, possible inflection starting be to but more to to second where think trying I going I this the half. more the we get point, an I see It's which you're it's of really in is in half.

Tim Savageaux

much. very Thanks Okay.

Jacob Suen

No problem.

Operator

Capital. have Instructions] Scott. from a Thank question of ahead, [Operator ROTH Searle in you. Please go Scott We

Scott Searle

for basis. my want seeing recovery. I'll consumer a you job you guys. regular Dave, And Hey, on on for asking miss wish Thanks all started the taking to best. Nice questions.

David Lyle

Scott. Thanks,

Scott Searle

the I'm any in enter big like that's going of type and want of the the XE. important the correct. Tim's is to Wi-Fi going you're dive what doing not to you part opportunities it immediate sounds Hey. But of To X you're back on And well traditional like in like build answered only it are $XX EPS doesn't that at I'm the just sort seems And on to outdoor some it as XXXX dialog in relates to there's transformation consumer XXXX levels if the that snap question, as you opportunity? building after seeing of sound indoor, XE to it level exited it's we first expectation. million in quarter. clarify Wi-Fi wondering opportunities stunning see XE? to not from to a Wi-Fi part pretty it, how that's is with seeing

Jacob Suen

Dave to pick the and then or good chime having Hey, Yes. Jacob in. questions I to talk to Morad here, first, you, Scott,

the the was. it's it's take time regarding but some going to back get to to correct, consumer, it you're recovering, now So where

you based much right we our during year. substantial seeing, over even quarter. used is improvement seeing visibility backlog a it are And at what higher on we're also as indicated, is in some give QX, that see, into in now, what we do seeing this numbers last than even point Although, backlog QX, what of the we QX to a get

within be two, of growing, why and the we, within good doing that for we're smaller I also So even is with I going successful overall to automotive percentage is when the, smaller antenna recovery approach, become the taking fully product the have say made we of it's evidence expect other mention we transition an in last positive really XX% reason the on is three consumer better consumer, system year, used to actually want that's demand years now largest, are like now that that fast are even with percentage we that with a revenue. product be of overall just really with it's of component a really what be price product overall year. from it's indicated, consumer would revenue. the integrator. going And percent. automotive revenue And to dividends. And it's be our outpacing of happening path, The with ago, expect paying enterprise, that I've go we that, And to and this our decision company, to but number to system year's though the those and system this a seeing, revenue than feel to that the will how now on the indication it's his our company, it's

X, to, absolutely. Now, XXXX, that One spoke WiFi you'd XE. that's Yes, I going me not to mentioned told basically carrier about one carrier anything, starting not XE. are American that major North WiFi spoke I they ship that to

Okay.

thing on the so or reasons all And side. what X, other are going thinking than have about consumer WiFi recovery XXx they I'm any help carriers those. that's of ship XE. the sure longer -- into same they one the the the with of -- And of quickly no should are move are them to that the in that So XXac, that help

Scott Searle

Okay. Very good.

Great. Jacob. helpful. Thanks, Very Okay.

Jacob Suen

Yes.

versus Yes. indoor. Morad Let commenting on the outdoor

Morad Sbahi

Yep, yes.

now are, a maybe that by that in in particularly fixed do provides the a of got mostly traction of to opportunity doing like that just capabilities for in Scott, that what of lot And X with Band opportunity the growth indoor, year ago, guys where doing. some these a to these for the the of was Airgain and in as seeing that wireless XE in to deployment, earlier lot want It's seeing. provide here's you to to mostly bit opportunities are we seeing, other of them XXXX Airgain, just and the we're what an T-Mobile that work has growth with like, wireless going back traction you're the is out instance, a Jacob or problems. than lot And that, there the had mostly in business I lot solve we complex indoor. lot platforms for or guys. a access, one you we're OEMs a outdoor, the is that little start a the a So there's said, part right see C way, compete say, is must wired right, with to that, But and of go say, the the an XXXX then operators you're

we in also area, that let's us solve these uplink traction also box. the add ARPU being, it problems, call able to but but cellular. you to per the already more increase complex wireless the so and now WiFi the And only had That gives be even not capability

you're and Consumer where design see going us. the that's forward traction of going wins So to for for some

Scott Searle

if I on NimbeLink sounds And wondering follow-up be I an Got you, the there. quarter, size of sounds give was the And business sequentially have only the continues indication front, if supply. was at could helpful. visibility you business the also to it fourth like you strong us very could least, like it the of a good up in the if but visibility quarter? third from backlog,

the at high low -- baseline So, the a frame see wondering end could for in expectation least growth what and XXXX? I you was kind end of if level the NimbeLink at or rates of you

David Lyle

I Scott. growing. sequentially. resolved do a in issues. of to demand, QX, I'll haven't be solved grew still In about -- talk shortage to we should the Yes, QX. QX that all want we of don't terms We But at think we supply specifically take I shot

the products on So, that's NimbeLink branded right putting us now. a on little pressure

to on still XXXX. supply jury's out for I think but the to with entire So, XXXX even the grow shortages, we're year, that, going

Scott Searle

AirgainConnect, front the number auto lastly, opportunity. on this engagements sure to could if of frame any the helping pilots about if you've talked and not the and past, I the In on of kind numbers Okay, provided dig I'm in call. you've to and

that for the year. other level carriers that's half any you've commercial crossed inflection AirgainConnect there second other thresholds the other extensions, on maybe But And of markets, put up in million front? going are $X is right, kind what for this and thoughts of wondering teeing did an AirgainConnect? of of on I'm mention Are terms of evolution with the You I -- fourth could guess, activity talked kind there the you other the there then about any color is updated Thanks. in quarter. product around

David Lyle

terms the in and that at of to just we're like is pretty seeing demand not and potential automotive of opportunity breakout that disclose this to for the you're revenue trying AirgainConnect, number. with on here we're terms But in material. the point, about our that accumulate Yes, -- talking

Morad-- let I'll and/or Jacob So,

Jacob Suen

on to are can larger AT&T it's I much seeing these have much new us Scott, lot a are we Morad urban also receive, a been share volume come since orders of the that second major that really with earlier, last fruition. now we -- with size and working a seeing approach you, Plus stronger opportunity the really, opportunities in to half are of we loss. indicated now year, and that anticipating

in is FirstNet. week, they AT&T, it receive really And the are service, offering, already focusing anniversary MegaRange an really So, that for throughout also happening, even during the FirstNet the year. DC continue to Award expect I the up And that, share it's in this there years we the earlier already of there more was expect are on to which to want XX pick Innovation -- AirgainConnect. to the flagship product scene

concerned a FirstNet, the make these by there's for all AirgainConnect and certainly, out really first-responders of So, AT&T to success product effort there. a

Morad Sbahi

here but are deployed, is actually noticed thing -- for that there that coverage, not add of more only in also opportunities the what that out a is that but would the and that I that more I better we And tell And general in rural. being theme that, I and that FirstNet from to you urban, I reality. we is side, not AirgainConnect see more other towers, becoming better that for towers is Scott see -- and speaking on there can event AT&T, came other the

of about product that last of had, have this the your SKU. I we just another kind that's terms to HPV, line Just mentioned in product that AirgainConnect the today, in address first point roadmap, you unit this the that question time call in

we carefully but so in America, here operators, disciplined, North You other not that only derivatives we focused. be out there There's can be to do to want needs do will that terms want care this be at so thinking of can also lose the and we hand with sight that taken much need be expect year global address provide not have successful will this that also we this overseas, And scale. to we but opportunity could do have of to we to in what us at of.

Scott Searle

Thanks so Great. much.

Operator

Thank you.

no further registered. have questions We

you over back for hand closing Thank I'll to So, very remarks. much. Jacob

Jacob Suen

you today's our Thank call. forward next Later. updating you to joining look for us call. on We on

Operator

lines. call That evening. you. Have today's lovely now Thank disconnect may a concludes You your much. Thank you very

Airgain (AIRG) 25 Feb 222021 Q4 Earnings call transcript