AIRG - Earnings call transcript Q3 2024

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Operator

Good afternoon. Welcome to Airgain's Third Quarter 2024 Earnings Conference Call. My name is Sherry, and I will be your operator for today's call.

Joining us today are Airgain's President and CEO, Jacob Suen; and CFO, Michael Elbaz.

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

the analysts. be remarks, from for prepared covering Airgain's management's call open will questions Following listeners during as caution operating forward-looking business I that and performance. statements be management strategy about making will future financial events future well Airgain's the as and call, Airgain's statements the Actual forward-looking company's materially business. by differ and risks could those stated to results implied uncertainties or from these due associated with

after call in contains statements live date These this Airgain information date filings. by today's contained earnings statements revise to the qualified statements SEC the release no update are undertakes accurate forward-looking This broadcast, of is any to cautionary conference time-sensitive that of call. circumstances XXXX. only forward-looking conference Airgain's and events the reflect obligation or November as XX, this of or

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

Jacob to like would to I CEO, Now call turn over Airgain's Suen. the Jacob?

Jacob Suen

operator. and Thank our will before company us for floor a we the of Good for Michael before to through the who you thoughts brief and financials CFO, I our outlook. will overview call begin then joining Elbaz, questions. thank today. turning over I'll you quarterly walk with you, QX closing for performance our everyone, and afternoon, return the open

certification analysts connectivity be our entire design I may simplify like to carrier to would and the connectivity we into investors to At solutions. across from results, value dive quarterly Airgain we integrated product familiar who wireless with Airgain, and Before any chain less us. introduce

for deploy, to ultimately the enhancing and solutions is customers. to mission make Our and partners integrate, connectivity straightforward, creating maintain our that easy are understand, wireless experience

for a solutions. years of systems ranging product portfolio antennas tracking, developed vehicle networking network embedded robust experience and repeater fixed With smart have and to access, over modems in comprehensive and asset wireless design, from cellular we antenna custom XX

global we address in for serving commitment consumer, technologies, wireless to growth. needs a well market's and and worldwide. expanding leader are enterprise confident fuel innovation to wireless addressable long-term through and solutions, sustainable are our automotive Today, positioned are we we surging, Demand the With emerging markets evolving that is industry-leading will connectivity connectivity market solutions.

QX factor. of achieved less sequential quarter, continued which antennas exceeded range. We driven was successful the million, our launch our sales We the to remain strong while Fleet year growth over increase quarter. this for in robust macroeconomic automotive despite a applications, a and guidance of growth despite This sales Turning than our largely consumer performance. in by enterprise of revenue reported AirgainConnect which last severe embedded midpoint X% challenges, $XX.X slightly sales second market our softer

broader to router systems opening and a XG saw validating gateway. Wi-Fi sales and X an the certification that certification well of opportunities key partner of performance, including critical I our AC-Fleet in milestone, operators, This also U.S. with X from bodies. industry to antenna across pleased as markets. technology's network commercialization ensuring T-Mobile We AT&T, Tier AirgainConnect as vehicle Fleet is share our achieved along am sales MSO initial major uptick a our compatibility

markets. X core Turning our to

this to ramp us first Wi-Fi market market a our router performance growth consumer quarter, marking saw exceptional QX of up XXXX. shipments system significantly. shipments last best QX, After MSO Our Tier delivered our QX X in in initial since X of antenna

connectivity steadily demand the generating in $X X initial with Tier X continue $X.X the industry. across for Additionally, solutions in highlights gaining accelerate to This growth Wi-Fi over impressive QX, an shipments shipments million our increase adoption revenue, antenna million second embedded strong MNO advanced following momentum quarter.

transition the Airgain vary among technologies. rates remains to at the of adoption forefront cutting-edge MSOs, While wireless

maintaining about this solidifying momentum optimistic Tier our space. this evolving begin leadership in X XXXX, Looking early plans ahead, further to to with MSO are another in shipments we

demand during result reduction a will X moderation We QX, in anticipate which shipments in the for a in upcoming quarter. Wi-Fi

impact robust ongoing QX, Wi-Fi typical growth trajectory. of factors we optimistic in by the long-term transition accelerating about our the our solution. driven the We remain prospects, following X the strengthen and seasonal collectively believe MNO these However, adoptions industry growth

advanced these QX, over and increase sales confidence market antennas for initial are million, this we In navigate public This AC-Fleet. reached are by innovative strong automotive In industry for our and in establishing, solutions of quarter, we the encouraged inventory sales on positive demand vehicles, us the to aftermarket $X.X the increase our even ability driven our this transportation Despite second where solutions primarily concentrate quarter, of and market, amid RECONXX we effectively progress for headwinds, automotive for we demand safety shipments quarter. achieved million market gives delivering persistent in momentum reflecting uncertainties. higher growing rising sequential a solutions our in challenges. sales $X.X a by fourth

This and Customer regarding on total a phase our highly networks. cost quarter, for positive, customers provides ownership. the performance, and solution's feedback a ease lower completing compact the this believe all-in-one advantage concept AT&T T-Mobile including use achievement trials We final from key certification approvals a time-to-market particularly and of with form AC-Fleet, factor. production of was been use for has

with trials trials to international and expected customer shipments nearly as XX progress. expanded markets, across increase domestic to have these We

unlock both we Additionally, revenue coming internationally, months, further should and the carrier new streams. which anticipate domestically in certifications

municipalities. with XG, QX, high-performance for designed counties rugged momentum outdoor fleet connectivity and RECONXX antenna, and XG continue vehicles, to public safety in Our gain deliver specifically to

optimism, encouraging. While highly cautious strong the is product RECONXX this warrants interest longer of cycle the sales for

us primed finish are momentum growth, ahead, of certifications for the continued Fleet. setting anticipate for by confident QX, in customer year. up strong a the additional the fueled market Looking we strong automotive to is AirgainConnect trials We and

previous to Enterprise a surge while $X.X sales by driven sales Finally, and was portfolio. embedded $X.X the slowdown expand our QX multiple tracker embedded million, sales quarter. saw lower to The new of to QX, reflects decline decreased design asset in custom larger-than-anticipated enterprise market QX, down continue to in due after compared from temporary modem in million wins. we modems a dip This primarily drop products. our a

sales excess first indicating into impacted inventory, X of surplus XXXX. product half customers may by custom extend Additionally, were this with the major

these While they inventory pressure actively our revenue, challenges aren't new, the steps are lessen move continue we forward. as but to we to taking impact

logistics progress in sectors temperature-sensitive with asset to applications, strategy, railcar assets. the broadening focus of and We include our our health high-value, to beyond care continue specifically IoT make transport strong aerial tracker

over beginning ideal order like sector, for and autonomously by life manual with airplane unique battery intelligence, This significantly year detect shipments removes FAA asset seamless for broad has demands market functionality of a critical from medical temperature This IoT XXXX. landing an compliance AT-Flight tracking with care major The launched extended initial temperature-sensitive a validation artificial powered care health any operating and vaccines advanced is strong in already to the by ensures QX automatically a and user provider, mode, offering anticipate enhances newly events. pharmaceuticals. of switching and the the Our AT-Flight purchase health assets built tracker, degrees regulations down device we a range, and AI-driven XX C, minus takeoff received designed that convenience. intervention is to for feature need to

stringent railcar-focused year. the wins railcar and that features In the sector, with tracker's unique portfolio configurations we last to connectivity, clinical a announced the environmental demands sector with leverage provides tailored our longevity expanded the meet specialized advantages, including on opportunity our build design cellular This to of asset have us competitive battery market. and

We Lantern's began and in which QX last in applications to Lantern markets. fail-over opportunities revenue lie slower-than-expected Shipments extension indoor transition quarter, American product, for outdoor of solutions from contributed small to our primary uses. enterprises a and for residential due FWA commercial minimally network to North believe

actively to While lengthy, cycle the win are design these pursuing is sales applications. we

of expect we short-term Looking us portfolio some a modest pipeline the confident custom expanding sales as our well are products, sales XXXX, ahead to challenges. quarter-over-quarter we in enterprise normalize. Despite position inventory uptick these and navigate softness in rest levels product temporary to

encouraged are strong Overall, lines quarter. the demonstrated product momentum key across we by several this

capitalize a belief and broad us on product growth positions reinforcing Our rebound. well in to our emerging diverse sustained portfolio opportunities,

communicated, previously for supplier to from solutions. to a of end-to-end delivering solely becoming comprehensive wireless that component of our evolving provider long-term shift our solutions strategic a actively system have the being positioning meet are we As Airgain demands advancing commitment market, This we transformation highlights the success.

solutions. growth maximizing centers X primary into and established Our wireless integrated business on pillars: expanding our strategy

business, are First, automotive products, consumer, our component-based modems, aftermarket custom executing strength embedded in our This and lies committed enterprise established embedded automotive where Airgain's applications. and includes products we antennas across deployed to solutions. traditional

recent in the significant quarters. have built we chain Over achieved the strong across milestones and value partnerships year,

Looking ongoing driven substantial antenna X factors, network several antenna expansion with the across ramp-up of of design within operators ahead, embedded mobile by we and key established markets. see these RECONXX and Wi-Fi pipeline both and automotive MSO categories, opportunities wins Tier enterprise including sales the X shipments product

growth for growing of market portfolio solutions Alongside strong solutions, in established business, customer solutions system growth road are XXXX opportunities we established success. the us. business. for allows optimistic presence of potential our most With our our pipeline, which asset tracking and and the areas upside product leverage beyond. long-term significant of us main wireless focus include the growth our in expertise our as our foundation we strategic expanding connectivity potential This see XG about and to map Key driver in and components represent

increasingly chain Our advanced other asset specialized applications. tracking solutions in supply management transportation, utilized are and

where and suite leverage foundation cloud-based portfolio including revenue for establishing streams. our services higher-margin have sustainable we our through offerings. device multiple These sectors brand premium year, strong tracking for subscription-based past offers our our the our customers enablement Over dashboards. can while recurring expand a potential strategy platform focus value This innovation enhance we with long-term components, revenue NimbeLink to on and refined product to

our open areas in repeater Lighthouse for significantly accelerating across difficult-to-reach XG XG growth opportunities coverage with network products Our across our up substantial way, the adoption connectivity multiple largest enhances controlled sectors drivers growth in in addressing operators, Leading industry. network the smart smart series mobile repeaters. connectivity challenges

Vehicle key growth area. another networking,

is AirgainConnect and mission-critical vehicle gateway communications. Fleet designed Wi-Fi connectivity GPS Our and support to essential cellular, public safety management, fleet for delivering

connectivity the for our access. offices, wireless and suite Fixed FWA Rounding demand homes small improve product wireless high-speed meeting Internet. to broadband opportunities, for rising is growth accessible the designed out Lantern

approach the market this solutions. strong a we potential, shows taking outdoor toward While as product are shifts measured

us residential in settings its transportation, us the XG growth is offerings solutions and fast-evolving needs Together, giving to confidence landscape. strong, XG Airgain's meet safety from enable our XXXX. to diverse for Interest in public within systems connectivity potential and commercial

connecting vision world of a reality. by wireless becoming making our steadily Airgain, is At the simple

the from we With closer devices Our network edge. connectivity precise expanding to connect intelligent range world core suite asset the and quality, of to and both and solutions connections, across enabling to ensure wireless is tracking connectivity designed cellular high-performance in are bringing in technology, coverage building from delivering to of complexities innovative applications challenging technology, of us simplifying environments. products expand outdoor ubiquitous. Airgain wireless optimize broad the seamlessly coverage to By enhancing is down is effortless breaking stable a where signal a

repeaters, reality, As remarkable the product becomes XXXX market our from SAM a company, XXXX line $X.X $X.X evolve, market component billion as as This into substantial advanced increasing addressable solutions capitalize connectivity in markets, XXXX. billion systems $X.X gateways expanding significant and our reflects $X.X demand these solutions. significant position high-growth provider rapidly serviceable underscoring we by wireless are sectors driven market opportunities controlled within our landscape. in reaching smart by which in vehicle expansion to to for entry us also is projected expanded our a at our network by ability and capture capturing strategic XXXX. with growth billion to billion This vision such comprehensive transformation a Collectively, a on rapidly share

Our sets markets. long-term growth success a strategy connectivity strong across high-demand substantial foundation for

leader capitalizing multifaceted in demand advanced for long-term growth solutions. our wireless while growth actively connectivity as commitment positioning to strategy a underscores substantial Overall, our our current Airgain

to quarter third financial our quarter. fourth With over Michael? that, and results the I the to turn discuss Michael will call outlook XXXX for

Michael Elbaz

Thank you, Jacob.

financial release. including to reconciliations, our Information into diving refers of to earnings non-GAAP be measures, the and figures. the note review financial can guidance found Before numbers, please non-GAAP my in our GAAP that about non-GAAP results

to Now quarter results. third let's our turn

our of initial $X QX. strong reached demand shipments sequential increase guidance our driven Tier our Jacob million. antennas $XX.X performance QX As strong came of $X.X following sequential for million, midpoint market. and consumer X above MSO million, sales at mentioned, the just in driven Consumer This increase a X X% $XX in largely XX% by by of million, a sales year-over-year an marks growth, Wi-Fi

our momentum we excess of customers. million, the third sales primarily products million MNO X in AirgainConnect driven experienced strategic decrease Fleet. initial inventory sequential sales in in aftermarket levels of came sales at $X.X $X.X million. increased our continued quarter. Additionally, FWA sales Tier due our antenna custom by to shipments and Enterprise $X.X sales the lower Automotive sequentially, was reflecting were impacted by a This million, IoT decline of X with $X.X up

and and QX at a was of products gross points, gross margin improvement our cost launch favorable in Year-over-year, XX.X%, basis enterprise the reflecting margin year. automotive mix. primarily stronger This a aftermarket came by margins markets. to improved of result reduction points high-performance XXX past initiatives enterprise in XXX up continuous the sales due over sequentially, basis and

expect expansion in gross further coming AirgainConnect ahead, we solutions Lighthouse margin quarters. Looking support and the our to

QX in and however, prototypes, investment XX% expenses project flat operating remaining as in and due increased Lighthouse as stable. roughly year-over-year The sequentially. increase rose higher sales increase personnel certifications was This driven expenses. by our remained reflects platforms. well functions, million, and million, expenses totaled testing our increase AirgainConnect engineering development sales expenses $X.X expenses, by primarily investments Year-over-year, while including the engineering G&A in to and a $X.X

enter we further their in new to a these expect As in we phase platforms. growth, X invest

from was $X.X by quarter. the at margin, Non-GAAP million breakeven. higher flat. negative while operating and QX million, driven in prior sales increase adjusted EBITDA EPS sequential gross improvement This remained expenses improved came was an in $X.X

As $X.X revenue of $X.X $X.X negative September EBITDA, XX, million, million was linearity led to XXXX, our cash cash adjusted balance flow down a Despite sequentially. challenges million. operating positive of

because million, receivable balance $X.X Net $X.X of million, revenue higher was linearity lower which $XX.X million sequentially was sequentially. accounts inventory million challenges. Our the $X.X was

fourth ending XX, December moving quarter XXXX. Now to our for outlook the

provide gross be believe we key to quarterly we and a for expenses, As overall of and sales, EPS non-GAAP reminder, performance our margin metrics as business. non-GAAP guidance adjusted EBITDA, indicators for these the

$XX.X X% million project of increase fourth midpoint year. QX and For we last the between sales with of million. $XX.X a a a quarter growth midpoint over and million XXXX, sequential XX% The $XX.X represents

fourth be in midpoint The to fourth or the expect non-GAAP We gross to the sequential XX.X% margin XX% increase range gross in the at for quarter XX.X% midpoint. of margin. represents the

customer midpoint EPS to expenses We be be million is wins. expect and on $X.X AC-Fleet at EBITDA Adjusted we $X.X expected the $X.XX driving guidance. and remain Non-GAAP the focused of expected as of guidance. the approximately operating to developing Lighthouse trials is the at be platforms, design million to supporting midpoint the

his like would closing to call turn I Now to Jacob? over thoughts. the Jacob for back

Jacob Suen

Michael. Thanks,

the a open Before would with like we for floor I to leave final questions, you thoughts. few

team's our proud strategic First, unwavering Airgain's incredibly commitment I map. road of am to

time lines. AC-Fleet initiatives, We under tight several and including product executing Lighthouse groundbreaking are

only As true to key of but team's our staying strength dedications testament also with meeting milestones, leadership. of and today, commitments the a we on are track our our not

recovery. Second, potential the we about remain and optimistic industry market broader

While we have certain made strides expansion reach. have segments innovation, challenges, significant geographic in product partnership product and faced

Our navigate investments new industry-wide product sales an inventory us launches position in adjustments. and to well force expanded

focused in confident returns execution We quarters the that ahead. resilience are will drive and meaningful our

our to central products our value Finally, remain innovative proposition.

asset our to regions As coverage and represent the to the the for connectivity increased XG challenges, solutions. Many demand shift opportunity grow. industry untapped still evolves tracking Wi-Fi for with X, potential continues global ongoing

as address key innovations industry from apart, future and help repeater, of These players. connectivity smart and in set Lighthouse major critical FWA connectivity. us a Fleet, AirgainConnect strong player the positioning solutions garner these smart next-generation Airgain interest needs Our

order we time is from reducing competitive to uniquely expanding am to of repeater I the cost ownership. its while Lighthouse's performance. have MNO. that an received network Lighthouse our market This positioned international first pleased very overall announce customers' commercial Lighthouse deployment, the advantage and validates and enhancing ease of coverage accelerate for smart With installation to in milestone

stage development Looking all sets ahead, significant markets. XXXX, customer initiatives specifically expansion our our our driven by Fleet growth X Lighthouse, the execution on AirgainConnect product of trials, for and across ongoing and in

the operator, open that, With call please Q&A. for

Operator

Stoss first Anthony is [Operator Craig-Hallum from Capital question Instructions] Group. with Our

Anthony Stoss

Jacob, customer a your maybe thanks it you for some production? ongoing expect Can point turn on there got of trials? to first them Lighthouse. How in be? put detail order. you've might on I the of the finer know terms volume many you do When into

about more to AirgainConnect also, I'd love Fleet. And Similar then question. hear the

be quarters. might You talked the you sense fully many next when a about of give ramped. do of coming us qualifications a that think and bunch of that's over couple how Maybe

Jacob Suen

want I couple a of answer sure I So your to just make questions.

talked trials. about you the First,

in for they and to continue we to AC-Fleet, the internationally, the the primarily So domestically closing the here ongoing, U.S. expect have although are call, as grow we roughly I as XX we're in that and that indicated out domestically And trials both year.

We are doing trials the Lighthouse. also for

to QX. We expected X complete quarter, this have

in We one also well. as pending domestically that's have

Anthony Stoss

And it. yet? excuse to Got for you know QX haven't additional you Wi-Fi up products in QX, in with me, expect launched Wi-Fi many mentioned then down I -- consumer X How but other then you MSO customers enterprise likely X. or your be your launching back

Jacob Suen

Yes.

-- encouraging. customers, which really in far first all, U.S., X are won there as of one MSOs. as the of And X is both Wi-Fi of we So major really them these

So timing of it's issue. a more

strong because and why in accelerate actually to that the first QX. that's continue. deployment, major we had really we MSO, it's started their For And growth expect QX a they we actually actually -- shipment have in

next also MNO. product of indoor with addition, half MSO, FWA the Now well. I say, And we're that That's start, deployment more second we working on as year. expect first would the to in

Michael Elbaz

Michael. Tony, And this is

moderation the we a on the expect QX, have, -- line. the in be negative your do in revenue, The mainly expect impact QX, clarification tends so which to was a seasonal Just that strong. In we do because QX on question. we product consumer quick

Anthony Stoss

customers? last tracker. And do you sense health you if to trying additional get could major care question, auto I'm how it. health the to ramp. your a airplane provider product how with this is? squeeze that mode Jacob, one think more. have on that you I'm trials Got care I a big expect to Is market of do that a congrats in for curious, Just

Jacob Suen

Yes. questions. Great Yes.

different would I So apply it market, certainly, to say a certainly application. could still niche but

fact that are to with able something the think now we is I develop intelligence. artificial

that's think I really something.

Airgain's enter be to AI first in The able history to market, market. new this exciting

And the other able in be case, this with what's sectors to to work the that, ability technology to able to using health but we excited predictability, many to -- That's well. with ability care, have getting us possibilities. about that really different as can the be

be So is we're as sectors mentioned still seeing the to applied I earlier, the niche, a particular multiple this can although in technology future. market

Anthony Stoss

Very our next good, you at conference. week Jacob. We'll see

Operator

with [Operator from Instructions] Our question next is Capital Tim Markets. Northland Savageaux

Timothy Savageaux

Congrats to at sort would expect as a commercial to do these that Tier initial of one what have a of And ship? overall on better this any And focus advanced that? customer. order network more XG also, infrastructure know scenario, the that's view as broader kind commitment customer to get in when want you from quarter. you well. major if be wonder in a deployment I that initial you such opportunity an mentioned significant order. if trials, pretty on as the I opportunity I another you rollout real solid of part X

Jacob Suen

of of -- to QX, trials more In the It's And actually you half I'm were picked have and QX actually year, It's numerous actually Great QX. a one to then exciting done And we deployment. in up. glad about actual the been expecting we questions, happening. pertaining Tim. that's things this this it happen is that indicating of previously. discussing we've next lot as first times than

a the of many. it's first really that's anticipated. one earlier pleased I'm order, happening is already only it And deployment was that than happening. this In And actually

that we We with particular able this hoping a scale we'll other are customers be are much well. working and to deployment MNO. on bigger as And them contract replicate to with

we're people market now what the we table. is what seeing value And a attacking that bringing we're and really are to

of to talked what just repeater to time It's solution less about I'll accomplish right? that. able give is X Lighthouse will are smart the astounding them colors, Whereas X months, One than you couple able with weeks. So alternative network we're the we take X to We a our to market. unique do solution.

to thing what this other means And does only is working are And just actual that product actually it's do with a so actually forward. that on this and opportunity. customers one product that's This as unique of We're the sale. questions, the mean? hope we're not sale. to deployment. we going the going your maintenance, about we to that recurring have more providing revenue than service answers a doing be them I move as Tim. new We're Lighthouse what's the And

Timothy Savageaux

wonder I outlook, business, those sort but don't components I got I I don't kind you of down appreciate I about know your you can and growth about us. than if I And systems accelerating when that for your talked you break in newer in of the And you know business 'XX. certainly, baseline talked if doubling. more you your heard think right, market prospects it. And addressable for if

there? growth accelerating and outlook expecting across growth regard in with guess, the all segments? much for you thinking, from built how But in At are I to material XG you own your revenue your side least have growth that

Michael Elbaz

is this Michael. Tim,

a gateway vehicle is Lighthouse. at and with give you is the guidance AirgainConnect the without without from just bit businesses, this provide some repeater the both it smart platform. AirgainConnect doubling beyond And Lighthouse network to so point. correct, you're SAM also of and any with color coming the the is type But this of So existing altogether, on early QX to platform

the asset that and growth year-over-year we well consumer businesses inventory But for tracker some slight have, some also that time, same as with too. we this at of in the challenges. and because of existing even excess example, the FWA, the expect headwinds along IoT in antenna growth we of But have having currently we're terms of do primarily some on

mainly From win from early the the a to wins. design because also and overall of sales or size visibility is don't complete tell, bit also, we for a is the very we that customer had have a we network was with example, over received back that part just been with have trial Lighthouse a order, in But to of mentioned elongated. we AC-Fleet, live QX. the This working is This sales this cycle the for commercial design of that year.

that And that so to and there, we're delivered there that progress as and QX AC-Fleet we expecting is some were and the of device hoping on to shipments fact have the the when be initial we fact we year, parts. the it with in where have are for to in the stage growth early commercialization are poised for in we sets now next right some to us the are part be expecting of that we believe we're Lighthouse those

Timothy Savageaux

that to uptick modest enterprise. question is in we Great. modest up commentary. recovery I of like $X relevant in mentioned of midpoint? of me, of the looks only it consumer growth your in a bit auto the or driver mean, that million a plus -- kind one in for there main be final implying And AC-Fleet a pullback guiding maybe Should you terms sequential and

Michael Elbaz

overall of lack those this the for initiatives. we specifically market. that the on is visibility, primarily be will driven the automotive And also range the guidance. growth reason wider by sequential have It's the new Yes, on

Operator

is with from Capital Partners. Our Scott ROTH Searle next question

Scott Searle

some that, provide but I hopped time the to little like that go there was guys headwinds I clear color Sierra seems front, the through NimbeLink call any on second, earlier. Wireless, I this converting in if the that addressing on on. got It of now, with you terms as have to covered if I apologize across of there the inventory. been in have you is think, that bit of think, wanted is pilot top on been And Lighthouse. you've that revenue. And I activity some sounds a like up think to well. there's to going line a I'm void working terms just starting plus into further of wondering significant ineffectively I late, marketplace. industry It

seeing kind as wondering overall what how module the you're of the So thinking into and you of in NimbeLink, activity we along the tracking with go goes the space, the I'm that year are design and about and end things XXXX?

Michael Elbaz

I'll Scott. you, start. Thank

expect some and on initial do quarter. we we a see Lighthouse, see revenue challenges. headwinds we the QX NimbeLink persistent did in the And lines, product inventory on do some So from

the that we becoming broader have and product "inventory more overall year Now is much last now correction" specific. customer seen

really, the where products, strategic year. extend that that so experiencing custom IoT had the of we us X this hitting it's as customers in well first And excess may half mentioned have too year are of we And through some inventory. it next

bit on. tracker, are definitely investing And a so that Jacob? some while we asset with are driving that, there are quite pockets of especially growth, we

Jacob Suen

Yes.

expect the markets. -- give that XXXX. in that's next do quarter, we're we growth overall, seeing But seasonality, that, going the beyond we're all while to as of into inventory don't at guidance of the year, enter can our be end of since we the I share expected. some think that look, some color think corrections, Certainly, I the I X

we're seeing the with consumer, the that uptick the With X, the with Wi-Fi MNO, with indoor with FWA.

We growth versus in will XXXX. that it XXXX be expect the

AirgainConnect with now but sustain we market, the feel AC-Fleet, FWA, so Lantern Lighthouse, contributor, the certainly With think Fleet, expect it's growth. really comfortable the additional the to so with enterprise, that big help in we the more to regards with. the And I automotive that

that We as position well. that's help going also enterprise within really us think to well for growth the

nice growth. expecting all, we're in So all a

half, first correction. we still inventory have with some the may Although deal to

that seeing But half. we really we're mentioned, the the do industry-wide it's that tail -- you of you're space, end seeing by the thing. the As first at on expect same end to IoT

Operator

will our this question-and-answer time, conclude this At session.

you question Airgain's contact closing your not would may Mr. over Suen back Investor Relations at airg@gateway-grp.com. for to answered, I was like remarks. team If now to the call turn

Jacob Suen

thank efforts behind tireless appreciation to invaluable for are I the all today. force and continued with outstanding driving you for us conclude our also joining look more sharing to extend want We success. I would trust special their in our for and our to our updates They may Thank future. their like Operator, contributions. in team to the now the support you you vision. investors forward call.

Operator

you us Third Call. for Quarter Earnings Thank you. XXXX joining Airgain's today for Thank

You now may disconnect.

Airgain (AIRG) 12 Nov 242024 Q3 Earnings call transcript