Earnings call transcript Q1 2024

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Operator

Good day and welcome to the Anterix Investor Conference Call. All participants are in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference to Natasha Vecchiarelli. madam. ahead go Please

Natasha Vecchiarelli

good Relations I'm I and Anterix call. to and President welcome Vecchiarelli, of the conference quarter Investor Corporate first morning, you Natasha everyone. Vice you Thank Communications, and

Rob me CFO; Gray, Guttman-McCabe, Schwartz, Joining Chris are President CEO; COO; and Communications Ryan and Regulatory and Chief Tim Gerbrandt, Officer. today

commercial during These future I'd future forward-looking events regarding are statements. are like begin, that undue performance, we place current assumptions call as remind you expectations reliance guidance. uncertainties. not we cautioned that to our this anticipated outlook will based on Before are on to to Investors make statements risks such our forward-looking and statements and and and subject

factors materially and files These to update for that After actual filings. do or results website. our the most on SEC's in questions. cause will SEC a from the Tim his be risks we undertake on to not the update Important Additionally, could call can differ remarks, expectations we'll duty recent our open provide any are provides company's website disclosed any Rob statements. accessed prepared and forward-looking quick

to With call that, over Rob. I'll the turn

Robert Schwartz

joining Thanks, and Natasha. everyone you thank Good for morning us.

utility the recent and already universe to to it's also our of highlighted that XX broadband generation LCRA that's signing use public transmission management Our focused and broadband utility attracting cases unique utility, territory is them We previous Texas. approximately service attention in of the as April a private customers water Anterix. power call XX,XXX additional providing most creating their spectrum LCRA new a deal, in counties of in on with and square mile

the and with contracts pace substantial us. do We to our laser will our I the of our acknowledge on start, price frustration to share customer that the is of of I on the investors asset sector that market in lost these stock spectrum continuing value opportunity. to valuable frustrations. lagging before We the and not focused we full demonstrate want cautious business utility capture remain further Now

two With today, I'll focus on that, areas.

our I'll the at investors First, on second, de progress pulse transactions. are industry's wireless in update on and spectrum a important you And market become that blocks facto to utility of update to broadband I'll between an of activities provide our intent request an give the customer scorecard, give solution. of range demonstrated a mission accomplishments building providing

see we with of our of to customers consistent measurable get investors before we intent market, way between address interim We the based introduced contracts transparent Demonstrated intended given well and to Intent of target reported. signs resulting with and sales complementing length is customer of providing that phases meaningful prolonged longer time contract. communicating our aligns the to stand-alone goal impact measure and progress DI our or pipeline the of scorecard the to and with sales previously the quantify customer tool see of February, in cycles of DI combined the fact This pace challenge we development This slower-than-anticipated a a and agreements.

progress potential and for this detailed value a contracting megahertz in We customer resulting our also believe of the of tool supports prospective and pipeline. provides our picture strength spectrum XXX confidence our towards

megahertz of and a our every over sales in measured intent XXX this tracked proceeds targeted contracted pursue billion private For is XX in to network. on wireless analysis, customer pipeline, representing indicators $X individual

and on intent or places total that participation more. indicators on indicates importance. assessment rate substantial panels megahertz based XX has is in with individually interviews, case to specific filings, indicators include, same membership contract. its that customer on These threshold, Board, these and consistently our of participation utility quarter-to-quarter. licenses, Anterix Strategic experimental continue score for this Each If a over We'll Utility XXX example, from the our to a Advisory weighted move of demonstrated use forward UBA weighted a

key with the with the contract share. specific number lastly, dollar for in of we'll of the three in those total value provides scoring along data associated metrics potential The the pipeline. This that utilities. proceeds net total individual indicators number utilities of threshold, are And utilities the DI increase that above recorded our

this April, $XXX our $XXX utilities third in time, above In just our DI that report update that approximately there after we shared million LCRA update. second representing million contract proceeds. threshold. over At the the DI the on in first had XX late in remained utilities highlighted Intent potential Demonstrated for threshold, we still of February provided proceeds. utilities threshold, year, crossed had contract contract were this announcing we in DI scorecard XX the our crossed still million, potential representing June, And the $XX XX provided In when

significant on indicators of We a number additional also reported progress of movement.

our measured our accounts. last June, Since across in report additional we activity

XX now crossing DI $XXX the proceeds. crossed DI proceeds. than to contract X that threshold, in the contract utilities more representing As the potential beyond And represent $XXX more that, than that potential million of in there close are have are threshold next today, utilities million

In have An the demonstrated DI scorecard DI Several progress months, XX June. been of recorded also asked about progress of on since indicators we've of threshold, below have of seen in scorecard our period incremental total new a XX total positive this DI by we intent indicators than measurement recorded X introduced we've utilities report February. customers since throughout intent on the for measurable less DI across additional of a you movement scorecard. that the our six on

we created broadband of beginning attributable recorded solution scorecard directly page The de website. June, on our DI is broader Relations our facto the to Additionally, utility are our Investor and efforts the individual for wireless an available updates on results these sector. to become captures infographic the that in

to since we've more. focus to We been work had partner the broadband a date, our wireless Utility Anterix Strategic contracts our with have and our the based available. wide believe Alliance active the the of utilities have Board, XXX% and being is Advisory broadband ecosystem area utilities of that spectrum Broadband utility We through our successful outcome closing private this within to on committed strongly five

our potential unique current and Advisory Authority. ability utilities, nine Amarin, we're Strategic excited addition Excel, new we've The of key a our Power identify are Dominion, New Evergy, report customers. Exelon, and the York to Northwestern, priorities executive collectively of solutions Southern, to pursue Through the from Board Utility had Board, level that and consists senior of including LCRA,

broadband the industry. or dedicated of association In we in aid Alliance, development addition, and A to to networks collaborative the of UBBA. industry the Utility adoption private Broadband continue the growth advancing

which a utility the operate their in two array who's turned network from services innovator than of our announced wireless that members who solutions broad listed of success May Energy since XXX and mark, broadband CenterPoint utility it leading as XXX surpassed passed that be collectively UBBA and of Energy, June, had XXX private to and on more has couldn't offering XXX capture newest program, that cofounding service In It's equipment our and companies focused Duke ecosystem this UVA leadership. build, another plan, any investments. member industry wireless technology the active prouder its with and value Anterix of program organization. megahertz of own require critical finally, and the members. Anterix now And LCRA utilities

our an the on element I'll near- thought an in positioning. of important increasing strategic and with update leadership industry, conclude presence our long-term

the as work and sort key that consistently to It's the industry, value our ecosystem, Beyond Utility new UBBA, educate is Strategic big our and necessity Board educational Advisory with our on stakeholders a small the market, and private of pioneers networks. of effort no broadband undertaking. of goal is a

trusted every just getting customers as explaining to opportunity, Anterix, the region broadcast each the utility, number why well means alone, and less nothing megahertz participated LTE for than more, the thought have at spoken For the leadership right industry word In the conferences, insights nation. it on out, not and few the panels specific regulators its we be its pieces from and XXX of private providing IEEE at publications. our diligent, answer we webinars is industry last months industry, need insightful a and written Nark, as own in and but to EEI, for

enough these but sought that continue and will facto solution. all efforts thought de customer reflected only to communications, as in Our goal not will utilities broadband out of the impact is leader intent utility believe cumulative a high also now demonstrated is drive by of themselves, regulators our team's it's becoming contracts that lead the We Anterix scorecard our is and to by on profile media. the

turn for to And over with update. it that, financial brief a I'll Tim

Timothy Gray

approximately week. broadband $XX delivering Rob. I'm our first excel pleased we that share Spectrum licenses, after last million received to milestone for Thanks,

the customers are funded proceeds near-term additional to also to delivery remainder expect fiscal million additional current We the flow of 'XX. fully year. forecast receive across of cash of our debt-free, remain milestones $XX roughly for free this fiscal have on We based and spread

a shares anticipate approximately a the using repurchase leveraging Excel. plan during week this the available we to current quarter we remainder and majority have the As program, in funds by from our efficiently $XX million last reminder, of we of received

to significantly the more plan place prior the approval. in subject plan to to Board intend robust expiration we a of Additionally, put current

the I'll to that, questions. operator over With turn for it

Operator

Flannery first Morgan [Operator Simon comes Instructions]The Stanley. from from question

Simon Flannery

just cash in the us broader Just or still with of of an about Is and can the parts it you give for is balance frustrations this us why the the it's with it what do Tim, remind even the other with And equipment clarification it's Rob, providers sort Thank now, industry. you utility approval? very Is the appropriate on much. delays on are? expected? Can taking than you of then, you Great. you others thanks you management, the with on the syncing issues modernization? an longer here what about for grid layers how key a talking buybacks. opened update of the think think just whether we Maybe layers company? just

Timothy Gray

is Hey this Simon, Tim.

least that to this got. coming flows of $XX a and going in also $XXX in the $XXX still million that Of we've our coming look that with $XXX we've like I we've the to stand-alone, signed contracts cash received piece, we're have got year million, of that the like as we've at that year. traditionally, don't million On the from OpEx, but balance a to to date, cover have cash at at I'd look million

where cash shares with buy comfortable cash being able So current with balance. I'm the position is to back with our

Simon Flannery

a just And think you of us remind cash Great. OpEx is? what year

Timothy Gray

million, Roughly $XX $XX million.

Simon Flannery

Thank you.

Robert Schwartz

make from it they they And and your are front the detail them probably are right? our to These and our on they of a And and those went cautious of we XX-year I our point, the time so some way. regulators, also, run decisions, second same our the about we're more the that kind process of takes nation's customers, decisions XX-, the have Simon, in while the April terms get XX-, agreements. multiple in that complexity you decades, cautious grid way along agreement seeing long multi-decades, the when current into issues because electric think to time, make we to the for call learnings end organizations as know, of they have committing, that at institutions of

front long end, of contracts. but long So end back equivalently

Board not activity progress just working the through talked of our the part from can example, are see followers. yet mind but each all of years that here. -- unique leaders as be are step see participation really going, customers, participation, forward have you other other time executives I and We've it in is the pioneers momentum influencing the are USAB, that Strategic it they're get of the are Utility forward, time provider customers. facto I Advisory Part is move now of my thought senior really while to that out what I we industry in inspiring for organizations ago we their mean, it about, takes a seen very to the learning and who set de This that committing in open as XX now that to signed

roll are their up Designated deals require of in own own into through make multiple of their April ways complex they deals, then larger doing that experimental whether all efforts as as talked utilities each these just in about we're to Intent, doing about which company USAB through quantification they're state our their forward, pipeline, and how decision. in to X-figure their we holding of That's That's with where move regulatory decisions through a bring individual licenses work. a that the pilots, and organizations. we've whether There those great it's other need leadership to sign, them it. The back more a talked we're the need have it's of their environment, opcos broader working

sector at whole but progress. So happy as measured can which five the see entire five the to see signed, Intent, embedded, the have frustrating we that wide from a complicated, We're we're we've last it are time unfortunate decisions indications they three here, so at a going on like this, at not X,XXX. takes we're Demonstrated just an but are we're these while strong closing get seeing, as batting one LTE a give new all the happening, that it's we're speed working optimism. including sector and us customers it's over made private years, the once area again, that to these from while that It's for

Simon Flannery

opportunity the you And us can on of then expanding of any addressable kind the more color anything on give sort mentioned your market, You opportunity? that? water

Timothy Gray

Yes.

right? that It's approached spending the think time. say, originally is look expenditures. have our interesting. We and year sector. to could that our clearly to of over alternatives at can like spending eye committed, follow opportunity Simon, $XXX The We're a the a I been ways utility which I that sector at bull's is as it it's a sectors be billion them. you we long for spectrum monetize is fair, There's utility in within few looking us to monetize where capital you've in

if up states you signed want added doesn't five else it that proceeds service territory do already sectors, what everything you look to even the the in likely, And we've with other so XX contracted across have private when markets, on going now. add? you most know, the you as equal utilities in Ryan, we and the for

Ryan Gerbrandt

of with that as thing one push first broadband of drive company use cases focused gets established power example just utilities cases different the and Rolodex these water the Colorado the that, on the we River a of do it's networks get and add they're to think the as utilities great Yes, too, the The the continuing need I space to from this of transmission underpin a place. in that and LCR And But in management lot cases, cases just they value. brings to that I them lower what of forward through a explore these working the as distribution ultimately Ryan use in here. add, been of the corelationship unique through set for. When we're underpinnings most value as responsible all think relatively captured with we've attention a we've Simon, I'll is with pipeline this, ultimately how now, to grow use through public importantly why utility. they use additional new

use that establishing A how business do big foundation is in in that utility of rooted the part we to the cases. with case a of work build

up So they a the the driving or on understand brand-new they're of the help not, in a a cumulative of kind broadband. full kind of transformation of market scope because whether all it valuable this utility potential opens

Simon Flannery

Thank you.

Operator

comes The go Walter from next Piecyk LightShed. ahead. from question Please

Walter Piecyk

much the your don't purchases Rob, Chris leases spectrum just of what is if how us I'm that are you to what fund the just I the like we what help some maybe new mean, but result of again and the Biden's may stuff, of have of upgrade necessarily lot I administration. election? away? falls to not can the call, given grid time is there, kind How and lead getting order ultimately goal. is, a have long utilities it upcoming on to Or out curious if review funding into new or of reach we sticky a in of these government know programs remind in Then opportunities but stuff the change? administration a that changes in

Robert Schwartz

question. Great Walt. Sure, Yes.

broadband middle programs. about on on years. seen of -- of talked are are what has programs. BIO The IIJ I little the ones that they're of we're and programs. So a The side, programs that mile is are a there we've multitude focused number the And GRIP other side, range know over side, the a one a this. on we've these bit

ones were that the filed the for first just people So years. for two

phase, and tranche. money will of we this see next years. with available these in we programs two that that So two-year in did excited over first again participate that number utilities the We're first a

a in customers concept reported also We've grants mile received it's and or given were green our for the forward up the process. middle and decision-making deployments. those light potential programs move press, the been applications seen, Those number customers that papers to thumbs and to of

past, so pipeline forward. to move we opportunities we've as back And them been we're opportunities to see to excited said that accelerate, these in may programs have because to stimulate, the further our as move in

continue see fully programs don't be future ready to the of the beyond tranche. two-year gone They're used three funded, process. they're I of way range over that and any the this they've through those years where because don't the next

programs think they I Walt, use of around. sticky I to So see one your them are words, being and

working types the consultants legislation funding. actively for be the working folks to are they Department with at and of of meeting working continue the are on community. and Capitol programs We're with considered consistently we're ensure as with Hill the with or to that We these written utility Energy that in

Walter Piecyk

So it, ask let more me I directly. guess,

and be I some necessarily use alternatives not could them basically a of be casualty believer there. in versus of energy I'm up a Trump of those blow come under that electric a out helping in administration not would in forward assume administration? less would that he's opportunity utilities, blowing where going his couldn't he probably other mean maybe assuming the Trump I'm something if So I again, you're up electric Similarly, into terms during but then aware And was there programs? wrong,

Robert Schwartz

Right.

see were as that interpret range necessity in are is let success. Absolutely. of language putting the in Could not the for thing the a and had these we happy So benefits. me They differently? of us additive. Department obviously we a there legislative neat by a start saying in Energy drive hand and see new But a to administration our have programs to come

private think Army knife is what I calls Rob the provides. it Swiss LTE

integration integration funding the of benefits in or The sort Army can Swiss or and tools knife also mitigation wildfire LTE. of of legislative the It the the language capture cybersecurity support that recognizes renewable that support can energy. element the data of of analysis private

forward. if that it's even or differently elements element up an and not interpreted. so Energy, encapsulated always of interpreted pretty by much in excited language LTE it are underpins but however many were again, additive it's So there that about going private new necessity, thought a we've about we're a But that as set Department benefits it

Walter Piecyk

Yes, thank you.

Robert Schwartz

Yep.

Operator

The from next from Instructions] question ahead. Cusic [Operator Please comes Philip JPMorgan. go

Philip Cusick

to any to customer criteria or up? like detail sort customer Can that It of guys. as to more of Hi to tier negotiated? what's getting of looks changes you versus X. from a within sort give up moved terms customers, that highest what not get someone in potential go And Tier ready sort us Tier tell or closer you and people anything contracted us of quite of additional can X

Ryan Gerbrandt

XX how kind it's mean are looking progressing looking I is different that here. factors at. we're of what the question. a these Phil, can mean, variety Excellent the utilities of Ryan at metrics you we're in imagine, as Yes, across I

scorecard how may it's we that of effect of from though the a measure are above that to the it's Intent. threshold line. let do of all look the couple in So them kind above of what the really we cumulative effect But both, one it a those single elements you we the opportunities mean one, below hard as because it distinguish Demonstrated the all ultimately me even at of line develop continue to perspective, describe terms give examples of a combination I'll move and

and to the every their develop through be our to to focus with opportunities to end, that with is to specifically the they and a couple and worked having executive measures the on end that a really, us continue important organization. were and obviously, drive the topic game the end line to to primary able to responsibility here executive get drives that's is the we've through help That contracts. A stakeholding items continuing we've as it as on that and calls I've couple day above them. state the part, champions a about them got, And as single pick we closer I'll these sit takes is the close they customers their the promote talked the of stakeholder before of across line of been one example and work realizing drive progressing the program closer sitting very above utility as just the to we've

of one elements team. moved that's so that we've this with And the

I've it allocation, tracked utilities when The around they're they formulating just for how this and perspective other their was how with decisions do as comes a make where they a how truly and assign you to have how a labor ways constrained variety around and money them. utilities for in what different turn people putting and measure allocate lot allocate matters they reasons. program allocations are to But team they what of attention in conscious always relatively of a one internally of do and budget

another with kind a And approvals, getting at these of it such closing for indicator so put driving through to one I stage it's the deals call team we're through decisions, and as of the we're as working them. negotiations been the what it's end as progress the ultimately together, trying on things ready to

the And sits so of kind that's one that above line.

seen there's we're the there's of rest is months. where, the and that activity develop up handful sit obviously, last all faster indicators out, terms And to of because call them movement different the more in progress the of customer, about demonstrate of we've pipeline in One where they had how the also five movement done and that and in six as ability continuing that's I've of seeing the line. volume to one through, ones utilities threshold to below just the coming they've we're the We and talked way a more customer promote the below more metrics one potential just things. this general

got to work. They've they're kind of working also these internal the brought sponsor. things as budget, an track They've executive promote outside an organization, be an firm, together. expertise be external also where I They've allocating evaluate a making time and able of centers, an to to the they're already to of, to created a where commitment resources a plan signed in indicator put the again, cost budget which together to invest and components third-party kind putting of necessary the able

generally since movements seeing as Rob the XX activity in move are a how at types examples as highlighted, just the that February, it amongst all through things picture they're we're here we big this of the moving those through. in positively just So we've other tracking terms seeing of I'm way and which of things of way seen their of started it of look just I total

Philip Cusick

thanks Okay, guys.

Ryan Gerbrandt

you. Thank

Operator

The today's from ahead. for last call go George comes Craig-Hallum. Please from Sutton question

George Sutton

you. Thank

X,XXX your a begin Ericsson like course, was and NRTC, with said had seen megahertz out something you XXX fit that the moving roll as that does they've would have as We West that partnership they're And they, successful. How into of Kentucky How on move pipeline? forward? that which, know, would trial marketing utilities. represents

Robert Schwartz

know, also happen Rural well. members is are Anybody on, Their well. as They're utilities as National for So to start. I'll to we a organization as add operate often don't Association. Telecommunications be wants the the who are right? by question, rural for NRTC veterans led Nextel great George. telcos those that Thanks

a got we've alliance. So close

work about to most drive segment talk whom what the we what municipal be able the in with right? think opportunities, rural smaller of They're and our continue develop to see got are pipeline. they of opportunities great customers, to co-ops not to top a opportunity. As I next organizations, to in is of them of They've we

and services that metering kinds include vendors for other a They've could products, for equipment. systems, been many channel of and

in that's done they've support I So next of customers. a get likely, purchasing other which systems. could bulk deployment way that of And to we segment think

is focused As initially the where see know, that which that's a segment larger we're starting demand is, and to already we you money in growing on IOUs, opportunity. we're the but see really

Ryan Gerbrandt

kind Yes. I targeting I'll and mean, digitalization industry-wide pipeline. just reflective they of the It's communications, and are unique seen and to, that the a I've just add robustness. a little needs think announcements bit primary there. adding for I in the we're stuff to even IOUs, broad it's of not resiliency though and the customer

so capabilities can another for that in I they ported potentially, to-be-built of a start they landscape where the George, channel of services be as another either advantage as what advantages, said, this some LTE what it in uncommon not think take looking down, is to at seen and to network And Rob other is frankly, area private other explore and IOU, do we've terms others. can looking provide utilities like-minded provided to example, constituents, services energy to other an

used of try a to just able that, is example other commercialization great to who've Company be Southern to services, services industrial customers. for own their their referenced that to network, not but offer we

a go see they forward. those we'll certainly, few so of develop of And as kind opportunities

George Sutton

have other One on I Obviously, Gordy the you XXX that you, referenced. are question active ecosystem. companies, a number working with you people believe a of

customers You have five today.

different represented XXX just this therefore, sort of suggesting being you a by those current XXX those of very are spending Can go that opportunity, any about to by opportunity? after what's examples companies done seeing companies than talk bigger obviously, opportunity base. your So

Ryan Gerbrandt

it the Yes. their but can't trajectory specifics, to Yes. participating you're I inform of the understanding market. helps ecosystem of speak right in the because in they're that general

of hold with LTE private to any with trying them and we journey chips in priorities associating their the development of what their and to they product informs to of those are where that the customers form get like is business in in prospective invite understand and for by infrastructure and see about an do kind forecast speak to volumetrically investment where and and so case, them event And and the overall kind critical they're and solutions collective, going, we drive annual what R&D customers devices together, services. end we inputs

they're And the so particular paying that's attention. reason why

to C-level that add reason ecosystem. by which value top Advisory and On ecosystem, it, is of me the announced Utility specific lens that it's the a other Let us one is governance why participate association and members That utilities our in with another too. can formation Strategic extract this, of we an having proposition our structure. Board,

we've sit sessions member having that And group, ago so and down that and them in face-to-face Austin, with mind, having not the today because to through them on all the spectrum. now with on room with share that I'll them, back the at we the they're experiences talking been the in and not executives keep long utilities, as and existing EEI from customers were having just in reflect their C-level opportunity

from drive participation something seeing the from and collectively, have set got large that those influence we've talking next so that hearing through so other learned we're utilities utilities lessons of call collectively of importantly, And the the collective. other more form about some and are we priorities that utilities firsthand there that we the are before that them gone can

these market of bring move did is them with big we to value able of outcomes programs programs broadband collective these tackle the the value helps put goal. is because going The together extracted. to bring and they're we to developing, final we this can is real extract collectively, together honestly, the picture to the point like that our where to to the into just aren't deliver find so It's create ultimately necessarily the can more our adopt aspects ecosystem that to with we back where rapidly way heads that cybersecurity tighter the be faster, and forward which the the that to utilities, the try solutions

Christopher Guttman-McCabe

George, it's And Chris.

members. asked about them sort what those products. activity had of You developing of XXX-plus seeing how been have and full of type they sort A -- third of one from we're

Ericsson. numbers companies XX XXX are those the In fact, have to Motorola I think and products enabled GE already it's and like key megahertz like and Cisco products broadband-enabled

sector call utility themes available of already have sector and and another the have ready. developed wireless So we so these the commercially the XX products, are they're and what or showcase both some who in

or XXX year. of So to to this year, can XX customers. utilities in That building towers either active we're We're equipment. year our enabled with this demonstrate being be deployment A aligns see of exciting going is they that are of have XXX utility infrastructure. actively megahertz built really networks right? offer the Anterix deploying what already or number terms to RAN, our putting going of an up utility plus seeing products sensibly This

George Sutton

you, Thanks Got guys. perfect.

Christopher Guttman-McCabe

you. Thank

Operator

our Schwartz question-and-answer to concludes I over conference for to back session. now Rob like the any This turn would remarks. closing

Robert Schwartz

operator. you, Thank

of will no Just intend With in close, pipeline. we just and do advantage see buy stock progress But I as and We from really all, to We in the activity that take very mistake. consistent developing much. stock. you everybody's today. we mind, price, and the lagging appreciate shared intent us, prices and said you throughout contracts time frustrates We signs our make we doubt. no back in use future. Thank to we proceeds Tim with patience market our of slowly confident earlier, as said, see these our as remain our

Operator

you very concluded. now for The presentation. conference Thank today's attending much has

now may disconnect Goodbye. your You lines.

Anterix (ATEX) 2 Aug 232024 Q1 Earnings call transcript