Earnings call transcript Q2 2023

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Operator

Good day and welcome to the Beam Global Second Quarter 2023 Financial Results and Corporate Update. All participants will be in a listen only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference over to Kathy McDermott, CFO. ahead. go Please

Kathy McDermott

business. good Global's and you you participating on for us Thanks, second afternoon. quarter Beam our update an XXXX to appreciate conference in today Joe, hear Thank call. joining We

Beam. Joining me is by activities be Wheatley, President, a recent question-and-answer an on Beam Desmond Chairman update CEO providing at will and Desmond of followed session.

Beam's performance forward-looking to call management But operational this statements statements first, during including I'd future you like that expectations that results. address to or be making for communicate will

Forward looking and risks from involve cause actual other may statements those factors results materially that to differ statements.

information publicly of reflect XX-Q most refer after to revise After issued XXXX. to recently this results. law, fiscal sensitive obligation information call financial more or the today, accurate periodic the Beam Form release any Beam a Beam's XX-K these occur and Form with in QX other contains XXXX as XX, and that our update date time circumstances described For August risks, is Global press to of today, to and filed reports Except that about content risk information this only market or closed required The our please as any filed disclaims factors announcing the by year call. events SEC.

will As had an see, we you excellent quarter.

via financial XX-Q IR I across also our you. In have in to history you, and release on fact, are and our the rereading of metrics. accessed available our you save will QX Since you all the in press material be improvements can with numbers front time This sec.gov. that Form website best the of

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Desmond call that, will I And the over with to turn Wheatley.

Desmond Wheatley

our you you, all us on everybody. to And QX Kathy. thank hear activities for of this Welcome update for operating XXXX. today Thank joining

production a and out is the XXth of this XXXX a team is to now full quarter quarter a Global. in deliver till produced more Beam not But other on and over row as words, really and best The XXXX. the far and production year full delivered this for a in XXX few and especially we've produced the XXXX team up Beam essentially our for produced EVRs as past system is deliveries or point. was growth the time. Beam and XXXX quarters same EVRs in produce way than quarter team all the year The That's second park of by of quarter. cadence delivered In in many prior EVRs in the to any now this

in increase increase over $XX half [indiscernible] the which production million just in increase same storage XX energy quarter times to in represents revenues fantastic our year. Chicago storage revenues the hours the we the looking generated QX of our based million we as and of remember business. first QX XXXX. that half, about team is XXXX. we first energy acquired continue than prior of acquisition. before in period at AllCell than than And XXX% revenues, the generated of over business, more in revenue full And On produce internal increase in any course batteries use we delivery XXX% our of we that an But March side producing kilowatt more The since revenue. factors of fantastic was higher were resulted in has of equally don't $XX.X for This in count side a

didn't this the about more produced times growth times. increased more second of at increase same headcount about same said, we're six we're squeeze But and about XX and by our prior overheads while times buildings the only batteries rate. in even out period the our same AllCell we X.X more producing of already producing X XX to increased the of product, We than all We of less. cost year. we times acquired in kilowatt than EVRs times by other managed our XXXX And it. hours I've while quarter we actually As before

So factors of with we've of All more revenue $X production almost in has first and a over around of accidents. of the million from gone from the just footprint times $XX them of million in come were same increase this and the X.X XXXX. none half variety to different in first people, half XXXX

better are have through the moving the what The clearly muscle on product we lot smarter, people I do working and know lot do. Things more they're done can we watching things infrastructure factory has a made of too. electric less side memory. storage effort. They both getting charting put their factory of deal First The safer and just the gelled. great all, side, into more them. smoothly and really we're are energy getting vehicle a and We things also at figuring teams, with not on walking the a more love effort in and people environment are time happy work. out how There's harder, done efficiently.

in more faster, and through walking floor but which first than a facility, still greater is much more I we stantially news invested more into have moved when fixturing while We're which reducing for we errors. the producing factory now already factory love product safely, and We've smoothly, was opportunity further the great looks. of [indiscernible] the thought opportunity this far massive is amount a now possible rolling of improvements. volumes. in many are more different for lot it other efficient makes EVRs new observing The how the tooling us

work, evidence of event, and their not error, but it to of a a in team the lot is and trial numbers. a it's and consideration, process, efforts an doing think of lot of some success I keeps the the see clear the

capital of invested The improvements. but we've observed, fact cash lot use of committed you and a of our we've to the tooling we've of in have done said these will and looked is, new ourselves. fixturing fixturing, not of any I most tooling significant amounts as who've

more and how talented a to have who well actually themselves. decisions to people We than qualified make is product processes improve and trained about manufacturing one the the are making our no team

a the ingress rolling have materials egress with office of and I'm our loaded into drive with products. often pleasantly the batteries, in, factory. are trucks solar from the other points view by and the the and our integrated corner electronics, all way I which distracted components steel, modules and watching

I know it will we different do again, so was rolling and The EVRs. few with level on a the here activity other more. While can the much side, completely than months out watch here we trucks is but completed of ago,

Our the global meaningfully ability to improved lot infrastructure a because more for produce and to product they dramatically. when the efficiencies production accelerating important is processes But at control contribute charging also EV our of time demand are products. they're our so to cost important enable they faster us inputs because a

identified which the years. we the our that I and also of the told which our were inflationary we quarter, we Last tackling you in significant products, of would environment of I a reductions have make teams significant in result that improvements or couple we our sold that goods believe you last end profits. been operations the gross improvements result at in hyper near told cost in and as way had engineering our

volumes our the as Finally, of products that labor down. I we of our impacts our overheads while unit would the running increase told cost through would factory, fixed per come you lessen,

this improvements you. we've it pretty reduction. As the exactly quarter, I third benefited to that The last and impact engineering far into only much actually areas identified quarterly of said happens, manufacturing during now last we've to just cost what so from I starting is, of my think halfway which those report us are

prices cost we [indiscernible] a actually of any decreases, see material quarters. will any the we the months from receive reduction not we happen this I’m nature anticipate improved of increases product. in engineering components massive and commodities coming do significant that did always during of and benefits don't though So our the quarter in

margins are purchasing cost the or pricing benefiting the first described. efficient our the were ensure same fact, from of a over possible. our getting team have, the areas time of favorable most these overhead absorption we in increased period In able inventory full to and all More not our of improve and spite efficiency has Beam for that to XX% less two manager time In the prior compared increased reduction, year. we from I the leverage by when history gross already in to most this which come still margin improvement labor,

not better. a quarter by to that from It's greater per these is in rate. without to the pace with growing hindsight and We've were a for being ago. now to will XXX That's just them. couple at moves I'm that do three at repeat the them. [indiscernible] grow not time we going it in than positive errors. two we're errors Revenue paid what the is time, was first. as employee We're about of profits row gross this one times times done we're quarters human. identified efficiently to We reported could as the happen and second year which we made so long particularly What worth the encouraged gross in quarter what the second hard actually Beam fact making growing team

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that expansion no have of the making the we expansion that on trucks banning law emission of is mix. just their Euro have deliver that zero I from is we new tell a of EVRs to good are cars we of should and to have most a into now the Europe mention in had Except important we're debt. the Finally, as add I couple There payments the is debt, XXX of point because number we growth million about our you just And Europe. it's view, that the also of can thing. my plans and over Union couple now very million but energy United aggressive next announced sources rather they're vehicles This climate energy carbon that European million under decades. in compared XXX -- XXXX. focused in in means and States change in moving very at to about China. all Europe has XXX integrating from also towards the XX years renewable zero tackling on into a neutrality the which moment,

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with in have discount. X% completed So were I'm able we no with the that less success warrants, dilution, its we and than offering delighted such to minimal June,

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you, to may to Thank operator back I'll that, the with any you that turn and questions answer gladly have. operator. And Over you. it

Operator

which Irwin ahead. At begin session. our come go question-and-answer take this first ROTH Instructions] will we from question, will We Craig with Please will time, now MKM. the [Operator

Craig Irwin

clear over likely this really specifically Thank you share been next $XX,XXX us at another savings items And maybe maybe us update a if sounded you talked wanted next like us This been of of this my likely start. about is couple It I where could to you very is in maybe for quarters? should adjusted Last the on per quarter, taper solid and to of that taking over you or quarter in Can on very question. lots you you plan. what's I had with point? changed the what's what's couple you on here. per achieve. Can sort unit? How unit been mean, to be progress addressed in savings and larger of what's that the the changed the quarters? list, schedule update

Desmond Wheatley

Yes.

Okay. that and An deal as one here. no imagine can excellent of you doubt we a give great thought question to,

to still I'm to you is So, nothing to the thing has committed that first that say $XX,XXX. changed.

the is teams. So engineering operation the and

benefited that. that as any to quarter, thing in that point in the the numbers we in second meaningful out yet, at The least have is announced we've second way not from

$XX,XXX So, still our cost full terms of that we essentially in future have in reduction.

fixed buying and profit in efficiencies volumes increased sort some generation the of along reduction again, a absorption gross came inflationary of reducing, got the our overhead not doing quarter in with, The better from if plateauing, of job vendors. higher the cost this purely environment. our general, from in of some We because facility, and, of in

beginning far but from suggest optimism the of and, optimistic here, and first I integrated knows think As to realistic XXXX, those product we we that an those my enthusiasm, the into everybody the I'm -- by enthusiastic that of we're quarter cost that it's should have remainder looking of savings. be changes and the the person, the I even at benefiting when get therefore, am, to expect savings with as

right we comfortable are I of We feel talking in cost about. just get And, that's out we're said of there's control, by we'll that that remainder won't would mean stop the integrate headline quarter, already now first my quarter quarter. reduction. we sort now, that the there. them lot of a halfway be the comments, the to full through anything of XXXX, starting benefit to that this as but the subject and integrated for improvements, in those our things fourth expect product think opportunity them to I in of of Some other

Craig Irwin

Excellent.

So, discussed that's previously, on execution a The pretty increase like price X.XX% plan, so you X. quick I that. May

commitments So, the do more gross it benefit and increase knowing the of we you quarter, price this likely start margins lifting current as us helps quarter? backlog, during and is that well? prior timing it's where that December this think see the the Or possible to the

Desmond Wheatley

Yes, a good one. Yes.

first again, at the point from to all So, thing in that numbers benefit just out, no we've announced. it

thank So, improvement as about me that add gross the for increase, and price not of you was the in result it my asking a that. I probably should comments.

I beginning think see it's I'll mean before a tell backlog because from have, happens. of that level of to units we a you few likely any the won't doesn't we impact slip XXXX that. what through. be that meaningful It

Sometimes get have we customers urgent very will needs. that

For a not example, in, to the anything our in right Hawaii, ARCs them backlog tell that from telling customers from those go at it's okay we few urgently I'm will and increases. people back ask in and we're moment. slot you Hawaii EV if but us what's we cost the this, Hawaii on going you benefit existing I if and would doing if that now, called wanted likely would

won't instances the queue, build XXXX. meaningful be might but So, we into product quarter first the there until slot are where of it

Craig Irwin

if I question, may. last then And

and real margins? the how other share were are gross any items non-cash the Your the if was also progress. to impacted we is always just making GAAP quarter, understand what with Can there adjusted in maybe that us margin useful amortization you discussion one-time very for

Desmond Wheatley

please. amortization, me the Kathy, give

Kathy McDermott

Yes, amortization...

Desmond Wheatley

my it with it have right I'm sorry. me a for don't of We're bear looking Just second. just tongue. tip at on the I now.

Craig Irwin

It's don't worries. numbers to No I important memorize understand. either those useful. It's very myself. just

Desmond Wheatley

Agreed.

then move Craig, the not, as pulls Okay, If out. them up, to numbers soon another you one, those and question? have throw Kathy I'll do next I'll as

Craig Irwin

Thanks impressive That again and perfectly. questions works on progress. for really this my taking congratulations

Desmond Wheatley

Craig. a Always pleasure. Thanks,

Kathy McDermott

$XXX,XXX

Desmond Wheatley

the $XXX,XXX amortization assets on for in by way, the I'm what is intangible hearing, of AllCell. quarter

Operator

will next Christopher from come Riley. Souther our question with And B.

Christopher Souther

customers, are anticipated year? timing order I get how an second XXXX this pipeline. Last the of as of was sense Maybe get similar as far the half cadence from on think on big just order start and did going? third update to we year, the pace conversations want as you based in quarter any the have we'll Do in visibility just customer the

Desmond Wheatley

are see said we're we good into lumpiness continue being before, anticipate than going revenue that's is constrained I've not growth, demand. that now to in news more supply lumpiness in cadence. As to I The order transmitted because

catching see XX% course, quarter, anticipate increase prior quarter will the That's, at developing year. we've quarter revenue for the because is Of diversifying over the to way up the of industry some do with the units and of one I business that. produced lumpiness and that moment. continue just percent Every by we're the over our this we in the way, our of good hundreds But last arguments sources.

Moving other to Europe, doing all those things.

an nice you we for still revenue nail they're more way backlog And good, about ratios. anyway. or know, pipeline Pipeline than conversion to All about not about we've very, of very these just model it growth been in the growth, past, our is are not quite order, lose to also materially never we every a the time consistent moves we just that stable backlog we're as are creating taking that because backlog. but conservative then And company.

as say, So the still bringing sales team, the I all in They're is time. selling. orders

beyond We we get, all announcing we've because evolved we that. feel the smaller orders have that stopped that

people really about upset that. Some are

people like announcing that Some we get. us order to purchase every see

people can't everybody Some We announce equally all. we when make get them happy. upset

simple do these arithmetic. announcing general, you the can things. stopped But But in we've,

in said into just our in revenue said, I pipeline still a backlog. see backlog the to lot I about bring it us of just it some we're versus lumpiness ability to future. say now, The I've You key to the the right can again, and support selling maintain steady we still can a in growth current is convert because remain see thing all that cadence. that going before that. But and as to opportunities our I'll very for bullish we're

Christopher Souther

sales the ARC on Europe what quarter timeline to for production see third ready the you for to closes EV potential think acquisition you acquisition? just of And Maybe the or the ARC what timelines think, developed if here? the product expansion, first here, EV start to in EV does to would for the and standard in and Okay. the to European be get after do some this market be,

Desmond Wheatley

don't to myself closed. it's you And now. because having I'm that you but the deal with can If don't a diligence want like, little we it's may to not like, We're I'm and do not we closed through I we even won't. acquisition it if love things sort way, due the until bit with pinch going I by we fall or not things anticipating change assure find on deal, we never due of in that, in a proceed find So diligence this that

But going the say, have any -- at I process at a I'm I that very alarm bells. who us. I'm red not through not seeing not any very, hearing moment, flags all. I'm diligence is as team professional And alongside due

ARCs Europe. need I today. much hopeful XXXX that With in that all to that they I they to make so of the like planning EV about acquisition these is still What everything and close within am said, guys have

materials as everything you walking them and in of down, products team been I I them None get them of to management videoed from all had was tell great had up a own eyes, them a fact, of make it to just X half there and a that the equipment XX-minute have with my down my it market. And and of this through of lot week with this In None there so my yet. our and here. can the speed. to I excitement opportunity was under in seen I took sat team walkthrough. roof the team middle through acres,

qualified ARCs. So on our said, about to today are they they I IP, the because times the don't so more them. far, as an IP, that's we acquisition, with fact them paying is valuable have our become are planning makes At for moment, far attractive revenue entity. EV make X as a They what and only

we sort buildings are bit land and paying you everything and land appraised equipment the already include for all stuff. and getting a that little and Never actually, what that them. if the are mind those all have else, all buildings of more, about the We and

that the send lion's So and may to after we will of parts that answer able to make our share in around on. very do on, some them. EV but start still specialized they to things facility question, bit, very little I'm beating early the acquire I'm take ARCs them sorry, we a electronic but they'll to We able are be bush soon your making be it harder

imagine, can of there, have quickly we testing I how sort the been to as you a waters sell that. As couple have customer there different for enthusiasm already, enthusiastic of do, who, product. but can with years. different better over It's them I is we're good prospects a order. as than I the knows that are turning purchase say, we're than into pretty I -- about enthusiasm Nobody purchase order. very at already

will but take don't I don't I want selling think when them time. it date there, So to long a a we'll start put on

standard concerned, is As EV number view. engineering from of that job an one point be as will far

standard, components the We engineer, development streetlights, team immediately sort integrated stuff. and They is electronics, this increasingly EV into solar that smart thing is, all will with of what these great do. and to design, manufacture panels, sensors, and a commit guys and of the

number more that we're which used to going doing they're doing States, one to going a than thing for good get is It's Europe, and Asia job what as under as that is and running United be adding So our the bit possible. what in product. to to be up patent, soon just

Operator

will Group. Please question next go with from Maxim ahead. Tate our come Sullivan And

Tate Sullivan

on continue see the reached, it we fluctuation margin maybe X%, sounds profit the of will margin? cadence you've look How production you the mean, build that level to lumpy that, And profit before? some the great based currently you gross at we'll of I up you efficiency, of maybe inventory, gross too. and orders see And mentioned should in given have,

Desmond Wheatley

as inventory. any moment, we're -- not Yes. moment, as build up it as to we build the I At to customers. as building we mean fast we delivering we're the At can fast do intend

said another can And matter we fact, how keen the can a had management very which just sub-assemblies recently, orders. I've I about we of is As that of -- and I'm pre-manufacturing get these so we components more larger as to respond certain meeting before, on this better. idea quickly

will pre-manufactured. the complex not lot the and having a I often expensive be of identifying about so of parts, those are that product, And think parts which most

directly moment, So to better. next we certainly That's would that right we to have quarters. for moment. sort at completed having of everything intend shipping product without of couple whip what's We happening can we're now. the inventory, if you And like, we're get customers. do producing, that continuing foresee But At planning inventory. not the the that's

the As my far Golden margin as Gate as as never Bridge. consider in we'll said I concerned, this is comments, the

painting you to the go start one at You end, other.

finished, again. all the As purchasing. When stop savings. congratulations, over team again. think you're finished, the and We instructions That's cost here, out to and operations get all won't figure engineering over how soon start you I start you're with as that. to

can changes is profit said to get And not changes product. has I've to I picked to steps believe direction. X% now, significant this any gross are front Those still remember, we've some And in And come product in The we make of we're before, to up with right as goal the my do us. that a that going from it. gap. XX%

kick And not X.XX% get that be already starts X%. price when sales the increase as the we've those add should savings. other we then savings, we so And those increase the cost to we to cost lose in $XX,XXX mentioned. will When well. accretive

look, -- hard. is we're think Business I life's So tricky.

getting into going team got some As working we're said and But the through And towards the a of before, year I very good this see improvements thing better. process, encouraging people very very intelligent to quarter better think and event. an I end here XXXX. this a of this not of we've is first

Tate Sullivan

Amiga, it if Or own diligence the you about is What of of are are what of financials? on close? main main then their well. some due to And some diligence going some your doing audit you Is the come can? gave steps comments steps to

Desmond Wheatley

place the I not I we're too own it that I acres is property. the tell the a over mean, here yet, own across not without that the and buildings. so the we doubt take buying although, biggest We're from to five Yes, to will covered on have there. We're could it doing that anticipate you environmental now, distant going going studies land. milestone,

Remember, it overhead our then after that of will want remediation mean project, we've no on I rent discover to piece won't land the burden. there. I paying buy cost I and $X.X billion piece be big We got over here. mean, it's rent that bought or materials rent's didn't site. a Obviously, hazardous because of a something

having too it I'm going of the that their are So going yes, long. we through We're that, financials. beyond screened hoping results before And through get I'm contracts. their right then, now. to

are with meeting their customers. We

market We see what future that We're like to them. validating they've the everything are studies doing told us. looks for

I will by say to company engineer. engineer. ago, an a founded a engineer. He his this. years handed son several The an salesman. was not is He's guy. an He's also who's it This solutions-oriented

I'm it as said, right the anything I've team trust a about alarm confident there's current the I think word You feeling any past. But anything done that like not use never -- as and dare like far don't M&A And lot owners or feel work's I wrong. bells now. of in that. concerned, this I would never management current a as

But adjusted skeletons. know that mean uncovered mind very can make will very, top work sure the going don't everything with them they There a diligence be that we to is are and we uncovering some. make extensive want and And so due to price through else I find that sure we're doesn't something. won't that that where accordingly. just skeletons. that's I we've process why the

I this. no cash thing on add facilities mean, which they're run, not add a their cash it improving does basically, all out Tate, of it's debt, use which And just I'll profitable I'll this. accounts. spending on tightly business. of of And a which has credit flows, one has a is now. flow. just This if money I lot very right business come may,

sell team We're a disciplined. business and in debt nations. have a for XX people the taking of they're a not acquisition. getting build who that like with I And on So years XX them. can we're they demonstrated

far, So I like them.

Tate Sullivan

saw Florida Florida, that for for or Florida accounted last large it before, well? in some XQ. me revenue in you commercial Just as Have of customer is clients a called is out I XX%

Desmond Wheatley

always talk a think I it is lot for thing of I a We little actually tricky mean, concentration -- me. concentration. the often about

like eighth anywhere California in California. concentrated we're saying the I the say For largest We're here. economic the mean, example, world. country. we're and we'll concentrated state sovereign in It's a in is concentrated between fourth

Florida, which, products Administration, the more I'm any geographically for because mean, that delivering were side great I be There's a with other think, it It I head situation, we sunshine the Kathy Miami-Dade in on largely. to just County, wasn't could Florida going was shake is here. or hardly just were that that thing plenty our products. there. at way, of Florida, we Same happens the of diverse. a state it for by a border Veterans on the In looking nod customer.

an are survived we're X.X winds, XXX have force five miles feet. hour, to and forget, to Category flood-proof don't And wind rated hurricane

sales that such of that that all had So think view don't I number federal a there. we're I that it's concentration were though as as concentration. market. to as it's through than any large not very again, they well we suited contract. I surprising the all one government more view But, don't

all indication Administration, we'd the as Losing just would them, no of Marine all U.S. one the all have winning own win that the of Army, The Corps, budgets, own is is their we Labs, of them they own one their that lose their them whatever, interests, Veterans others. no indication guidance.

Operator

question next Please go ahead. Northland. will Abhishek from And Sinha come with our

Unidentified Participant

on quarter. Good Kailash Sinha. Abhishek behalf of This is

manufacturing just spoke as well. And So about you how your there guys about wanted to European know expansion?

product with So, seeing your and how just in cost about wanted Europe to know you're competitiveness your that?

Desmond Wheatley

XXX here. back Yes, said it's than go and thing Because electric expensive from, go six-inches down for deploy trenches the of, lot years. us. it before, There's to dig infrastructure vehicle permitting I'm so through you I in Edinburgh, that's charging good Europe where more It's if dig to I in news actually a a as is planning. harder you Edinburgh, and mean, I've think

you dig never that. else to like You going trenches you're what and when know encounter everything

anything product European I than like a else construction, can here. without in for work, believe, that, market it deployed any or without permitting even to benefit the us which be going meaningful having electrical an So is without be greater

their that, European larger Beyond as is more market needs I've and mentioned. the acute, much already are much

Greece. road from nice that, thing One literally off the just Serbia about that's is it's

of If to islands, Greece, a electrifying to next of any in and sunshine, be been think plentiful decades. you about Greece, of going nation couple it's and if the infrastructure have you grid it's under-usable

fires never had, So just the alone, products it. mind suited for nation all ideally our that absolutely are everything and that they've X

here. and is concerned, I we're of As it are there, there's course, so over except as what said cost far be against competitive United product cost as the more we infrastructure not to deployments. And in we'll think don't Europe doing competitiveness badly I of no too bear than States, competing know I traditional the in

Unidentified Participant

Awesome.

where OpEx Just a as a of you the next know see the follow-up, as to just want revenue in projects. coming percentage

Desmond Wheatley

of a we think still leverage. I operating lot have

it. about to There's going add no more are people. We doubt

We to. have

that. of as of growth about certainly be I make that more and be can't government from to type to and do all is more back a we how prove of spending numbers things side lot coming both But somehow you the here about expect of everybody have our coming that. sales of absorb able We're have very go government seeing to to just relations because going mean, expending we're just investments, levels You well we we investments, intend judicious corporate. corporate that. as

relationships be over of furniture their the renewable, an same to if to because, to of and we EV because side think team, hire charging need asked to is to good course, back first They all list -- stuff apologize, that but things, European off-grid, have interesting it, -- to and and we in the they've want selling management go think to I existing they nations customer there, that streetlights, that to do municipalities, going is sales already about Europe. team I've you if now made EV they the past. they've cities, done news the been infrastructure energized, On have been it existing with thing. we're Would the do street the to products sales states other you? in that say, and hasn't what we try team, thing our

more about set. which very going I'm exciting great I I So -- well be add the of to a credibility this product to the will it. have Beam enthusiastic had we tremendous mean, moment, with the of But at we've if sales really, the of whom part do is all whole over way tell got it's what we'll so of them pool because Europe. already, just Amiga, very, deal got they're we've people go We're that customer from a reason with we and we're there, opportunities it. new already works, back buying aligned what product doing them to

Operator

next our with Chris Needham. Pierce from come question will And

Christopher Pierce

Desmond, just revenues, backlog down million. in take $XX give X and or million $XX

some talked third on just we've us pipeline talked year. I backlog? when think last convert of pipeline get of about pipeline of kind that in refresh color -- might -- guess, you to to I'd lapping quarter love kind and Can I the then about what backlog. the kind to And

any Was want Or or year? government there you're get what sense in kind Somebody third anything it. of just of kind of against? asked doors? last year? customers in your purchase to was of you agencies about down a drove third quarter Just competing the guy's Were kind any quarter the of to knocking X timer's last that

Desmond Wheatley

you I and backlog million in revenue came so $XX Yes, down said million. think $XX

So absolutely happen. I want that did clear not be to

the down been revenue have went are didn't our We quarter. much that's backlog -- as because as And near come during we anywhere up. our selling

not revenues. So, we have the with the with the during in reduction in backlog is quarter. been converting -- increase our backlog into the pipeline commensurate And

And that orders had of the and of year other we a The activity to budget orders of federal of of ends year coincidence. at see But last yes, question, third more year. the large significant year. Federal XX. very end September the quarter your we government time times at part the answer your other some than not that's do

can get might very Although, deploy D.C., government them. right getting federal and Department that, now amongst diminish -- think senators the the of and from -- Department of in in of I is some I White tell three well charging the with to two electrification actually on you the weeks EV quarters that of infrastructure was all Transportation, about and might We're the with coming the I just focus ago, Yes, known. several or Washington, of urgency ground. met met because to the representatives House congressmen, Energy, in

Our product are well very solutions known.

say, about us. already I knows White House As the

important historically So moving to It I'm get the I going September was backlog think XX, record we've -- certainly year, conversion guess backlog. to this become some last say but now less converting not had on on what good very except significant of forward. right thing the to a that, of we'll pipeline might pipeline year, to that

that. it more think than year, XX% or was more over last than was It I that, actually.

going million I to in any converted we something in That's pipeline think an unheard it's we it business, $XX goal after. for the of of to pretty a the backlog $XX converted keep started much and million year. good year us but with like

Christopher Pierce

detail. I Perfect. Okay. the appreciate

Operator

Investor. next question McCulloch] [James Private (ph), from come will And a our

Unidentified Participant

into strategic Europe. couple congratulations questions. Desmond, the good move A on quarter on a of

backlog. like you going production based quarter? two third got rate. you've the the about into second quarter It First production still one increasing on the your looks on on rate Are backlog a planning month

Desmond Wheatley

James, quarter based I quarter? rate on be our second Not mean run you think but combative, two to a

Unidentified Participant

Yes, increasing second quarter. rate? production Are the you still contemplating

Desmond Wheatley

at supply said, are I As the constrained. still we moment,

it it. customers that. us to have done have getting We of thrown And me We could human at along, excited? were all that. get is we've would them. we're would not done We we all faster going to just that wouldn't have our be There it else. be who have revenue last We're to them getting sober convert could to why we what thrown that. who beings people could We now, and from do really like to to have don't approach have long-term it year, at and money than backlog the everything right continue gains done got So still in as to will efficiently. fundamental asked you product which the everybody

have you realistic on increases have we backlog see percentage and going have, those other are continue types hard to if expect reason, It's to much quarter them, best to believe So can. no used most I the also of previous that execute quarter-over-quarter to that will simply don't us because continue but way we're than growth sustainable. top profitable to multiples the numbers the be. on like of not they It's in so higher to we

to a what cutting So sustainable right and we're We're planning do, else do sober take doing on back in business not way. or approach continuing is planning a anything on growing we now. which safe to the

Unidentified Participant

second the over production quarter? it. rate Got imminent to There's plans increase no the

Desmond Wheatley

expect rates. able more production increasing is front so in a not amount more of still is, just the some that, I course, of just said, there's faster it's to is production than of say, goal us. sort didn't to the produce to important customer We we're we in still it to We're rates I going not of have. it increasing tremendous us, it. response do requirements growth very be that of product being going and to

Unidentified Participant

Okay.

government orders related new customers, and you have to pricing? on backlog the question bound on from Any you resistance old are Second of some contracts the the price that larger increase. on the by

Desmond Wheatley

two questions. are good Those very

was as was we me, really not first lot part. I our customers, increase, market. on important have think far, my and pushback to to when So disinclined I do received mentioned, from because believe especially price of hair there in tugging, any grow that announced so this we I place a it's the

the ended the in I same up not for people's it no such in that could quarter want the have even should a product me team see What the and impact that of and every we thing this about we because years, they until price doing eye long wasn't sales pricing? after, a be say fact. increase result It negative as look doing time, just part with review is reason worried and urgency done of we for The it. will

them. I nobody's of far, to so have And say, making liars

increased the than with I much to remember, increased our less vendors prices prices amount think, we've have of their us. our especially inflation, So by

ability to the that these be the we so get So can reason increased amount to have prices done I what and has opportunity will And better is in their less to it price very we've we're much us easily increases. doing. And still the our at that feel just vendors demonstrated. that because continue rests justify been than demonstrated

As not we larger far sort contract arbitrarily yes, as increase to. government with larger government, prices able to a want your of question we when about the it's priced. We're contract, have whenever just

of us in be that. do government price. our again, adjust of doubt and of any have major However, reflective so that be I will But there impactful through process XXXX. the first moving is will a to before gone are we going the any quarter new that that contracts process material through way to forward, to they that And

Unidentified Participant

social due on versus Europe. diligence I'm do process but management about sure similar for then in specific And not Serbia a structure, have the especially they questions two Europe, the Western you you purchasing? you be group, that? significant lay some or so that on pretty somebody clarity downturn, there's have Could if a liability usually would that us give to off ever

Desmond Wheatley

Yes.

really it is is in but will in that, yet it Serbia European Union. is of not the the one I things as it indications All like XXXX, as European not yet are in be So Union. about that the

though it right-to-trade as the is. has it However,

Europe, that with being comes in trading state. along of Union the European a without tariff-free any So member compliance but

years got of I period where the so will little ahead think six that we've a some case. us of be honeymoon or

to the be, is different. we, Nevertheless, a California. somebody's much underline state as about of the in right supposed the quite supposed was reality that particularly anything. United But it as is ado terminate you have be, supposed is as to point where it's employer States, are and I to right to not California course, without to easy out an in employment

you're those what pointing to So will exist. --

side is there. other that basis for pay coin the lower so we the of much that over people However, is what cost

very we very and months California mentioned the might excellent by three I for pay, to comments, somebody qualified after than be laid As that opinion, we less a two will much whatever, than money fully paying making place. covering and in in price welder that my in in so engineers have the them my will they're less certainly the off be much more more than, offset first or or

Unidentified Participant

Okay. an it. We with legacy the was costs. It just had issue

times U.S., didn't and terminate be If sale. to purchase looks and a any like three purchasing cost that's you'd the you a so plain it had an for ever I outright, the in reason, just if it's liability

question. Next

Desmond Wheatley

Yes.

Unidentified Participant

kind X the due or diligence, diligence, you you thing? going starting environmental little On bit significant environmental are are a with to that the due start Phase more out of out core a with review, samples, pulling

Desmond Wheatley

samples. We're doing

Unidentified Participant

obviously anything. -- That you especially can if find expensive, get fairly But

Desmond Wheatley

it We've just than fact much the back in to. are the to team. going are not And, goes here. already again, expensive they quote Serbia things from it's got a James, that less

Operator

next with Tuohy our Noel Augustus Brothers. Parks will And question come from

Noel Parks

couple questions. wondering, of, between trends particular seeing is terms had orders. new most which could a what as deployments maybe I or in today and of repeat terms you're with feel well, from the I'm Just order past about, the type give is I now for aggressive vertical moment at in as Any of bit was if in And transactions guess you new terms curious customer customers seeing? new can far what talk just the a the pace, you breakout a little versus orders? you're

Desmond Wheatley

Yes.

them of in have of place. although new So, actually, contracts we these some existing coming customers, that be a lot might through

this before, you to back concentration mentioned thing. I to this As goes

for last example, issued State not a to California the replacing of was allowed In new that. You but old year, an a to one, it do us. a like bit know, contract way, they're

So it competitively-let was a new contract.

governmental States things entity that other to the made or available any did of across One America. was they that the United they

course, to result, the Services Administration their our we're hurricane-proof And, we Proof hurricane-proof. contract because XXX General the buying has preparedness all and have and that suited mile-an-hour hurricane one back. we and any is we made very at -- that emergency well that entity of available And seen XXX vehicles The I And federal flood-proof and same level the as product during our winds, continue as but thing. cites the to winds. a charge for did power, that not product. GSA have that. take blackouts, We're to up governmental to disaster reason survive

at often they've vehicles. sales of It's That's steering our through we a those because contract have them had vehicles. good for So customers, good lot very is existing team new contract idea us. simply to but come a

can. RFP can we've something hey, contract, a lengthy process but somebody had through contract you go sales it the is through of So do why doing buy a that, along, California if that. instances of And saying, or an quite our of GSA the or either team if lot through that? like Just comes they it buy

there I continue and municipal, new state, federal, but during the very board, commercial for customers, think, from customers. customers. seen see also quite lot quite the and were pickup board a the continued continued of We period, of we've pickup across government commercial customers side to while we but Otherwise, a I government-heavy as on lot a commercial across of customers. in the said, again, COVID a a

I would a healthy mix. say So

Noel Parks

question a Great. just about And Amiga.

you, mix, revenue As service like have of legacy particular I higher far And if of out any they sort do service a sort organization, cost larger has for advantages their equipment they as component? a if there? wonder their have that servicing

Desmond Wheatley

point of mean view? from recurring You a revenue

Noel Parks

exactly. Yes,

Desmond Wheatley

Yes.

a much has does of lot pretty But, revenue get be service much although They require it organization. So it's do they of not good minimal. making us, like service, again, recurring said what to a have from they're service.

tell not becoming area going this. major one already And my focus I'll on been of them, and that I'm were so they to that's prior them. enthusiastically focusing a to for area shift interested pursue in you to continue of

mean, done up. want want an in and not are from ground revenue not projects. very not sporting in it's from the project. serendipitously, Previously high to else large as be made sounds do, stadium, to to decision doing product, project things, business they've be stadium say, That example, for fun the their We a built logistically that although do incredibly history, Africa, they incredible doing had those a We already construction they themselves, I some we projects. their be very to risky. but I in. want And, everything numbers

could By the the works fantastic, just do are would that like to streetlights be service, generally are whole will over have revenue That's then It a course, to And point to way, now, The with the of something their not had in I'm forward. as pumping product, particularly management in in do suggesting where we to that what the moving after that at plans that recapture. a ways. because, offer not we margins renewably that we of but a the we They're them impossible I factory that out I've host offer mean, as the sitting we future. that it's have discussion product. want team in wouldn't better go there. just utility service great. a right not much point recurring bill different and energized, we streetlight some

there, So and moment, it. but selling making at there opportunities are the it's lots of products mostly

Noel Parks

Okay, me. great. That's for all

Desmond Wheatley

if we here take We're time, should operator. I'm I on is happy coming one, Otherwise, think wrap-up. there up another to one.

Operator

This over concludes like our any the question-and-answer session. remarks. back I'd Desmond closing Wheatley turn to for conference to

Desmond Wheatley

strong thank still in Thank everybody, you, incredibly just structure. you, have for for capital mean, attractive growth the sheet better and I listening recap the questions. operator. I revenues, than an can't that gave. do also I balance again, And, Fantastic excellent

is. low up great and Just how this Europe. Street, Wall few into then our of have we how flow and look expansion Street, and thumbs Wall outstanding from at shares vote support Great confidence from a

intend the the East Middle last about without and over continue in demonstrated taking business motorcycle, around, my you spent the place out And Europe if go mentioned that done the what been a Global they're can All of a is great and work us input. grow job. to place in that they fantastic let fantastic. them me very doing. is growth a and take seen just team. at They've aggressively me without you've of worried in Beam lot riding grow I time that they've are which As being proud active do way I'm earlier, I the has this I've to months. of every any I can

for because only started. all involved more time you being just for a be It's getting and from us to stuff Beam at we're thank looking forward So great great Global.

Operator

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

lines. your disconnect now may You

Beam Global (BEEM) 14 Aug 232023 Q2 Earnings call transcript