MINM - Earnings call transcript Q2 2021

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Operator

Good day and thank you for standing by. Welcome to Minim's Second Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. hand over to today, your like Mr. now the to conference speaker I'd Hayden Carbonara IR. James from you. Thank go Please ahead.

James Carbonara

the Chynoweth, Thank Minim's Doherty, Earnings on Second And Chief Quarter are you. once XXXX Call. again, Financial Officer. With and Executive Officer; Chief welcome to call Sean Gray me

As all today's materials live on are available a company's ir.minim.com. Investor reminder, the Relations including presentation website at

contain to Before everyone that may I call want remind forward-looking begin, we conference statements. today's

expenses including Forward-looking from business and statements forward-looking margins, statements revenue, include trends those materially these future future, Actual differ expected or the by results statements. outlook. operating regarding could contemplated

Commission. reconciliation For our in company differ uncertainties, note comparable as from and company's reports Form on that, the a filings analyze see is in non-GAAP management with our the which with to measures the non-GAAP company's use Please or press other that in expressed actual that the please implied to annual time-to-time in as filed XX-Q, report from results such Form recent discussion contained reports those the on too release of numbers XX-K may SEC. most well forward-looking such detailed could Securities available A today's performance. include utilizes in the numbers to GAAP of the subsequent of in factors Exchange risks well as files statements, most and cause risk the call periodic

to Gray, like would call to Minim. please I Now, of the Chynoweth, over Gray turn proceed. CEO

Gray Chynoweth

call. Minim's quarter conference and to welcome Thanks, morning, second James. Good XXXX

router vision. US and the phone. connected we're period. an and are our growth, Motorola to a grew recognized sell the our line yet QX that's wave what I'm have go or We products and all of for segment pace. service the We believe making device XX% intelligent In for slide I'm some simple have everyone's networking Minim pleased represented significant the for This They same At given to online. XXXX, we're single-purpose over a work. operate with revenue to slide getting the and today trademark key at life you're market of we're of the by especially XX% of product we to on acceleration with that on X. top connected high-performance must the today, doing globally available safe Please share capable XX%. transform deliver. mobile company our quarter of in second home, Internet result you of the and this in along and of turn intelligent ir.minim.com grew declines when a from ISP billion look into that following and must leading If It how competitors the retailers supportive the we headed. where homes is excited with providers, XXX and with XXXX, now billion growth come results homes serve massive X. in the deck a to brain, shown SMBs. single-digit WiFi started to We begins expanding it a that Minim,

end and today. in of the slide joined speaking call; later this On offerings. X, at network consumer devices. President X, Minim's, will and including I'm inflection product spending Sean X.X exciting Nicole WiFi of us, by fiber-to-the-home, increasing technology today, the have latest of networking, for Zheng, who discussion who advancements mesh questions CMO, DOCSIS be on These the are home on and smart you'll will Doherty, CFO, adoption ahead and cycles XG, We points replacement available be DOCSIS WiFi see X.X, XE, accelerating the

the quarter progress from market. again, financials software profitability Turning slide we're our We towards revenue year. building bookings, making our second EBITDA achieving in And and first growth this the on the our XX%, a year-over-year. positive the more we're seasonal than improvement year-over-year revenue gross X, of to demonstrates our quarter up growing and momentum quarter margin XX% XX% this of accelerated to slowdown, representing drove in typical significant XXXX, second despite

of increase subscription products. Our as software-enabled is evidenced by traction by additional gained business, the expanding hardware deferred which driven balance the revenue on in sheet intelligent sales our

the Our first revenue this shifts towards to climb, networking was for intelligent our as we the quarter expect more X% just ratio from deferred second revenue up ratio continue quarter. the increase to software-driven recognize to of X%, products. mix Overtime, sales and in

notably, expense marked side, project. the warehouse onetime completion organization a of that a material optimization $XXX,XXX incurred we most the On scrap expense and

at $XX changed strong position our has a net incredibly the an highlights. the increased on us the $XXX,XXX cash execute of formally provides our operational on following flow after EBITDA, perspective plan. and we sheet and for recorded an X, We optimization, I'd cash President. saw expanded retail area combination at quarter-over-quarter From almost India. quarter, demand, to this completed challenges a Also, negative $X spend versus share Inc. we in negative in innovation, like company Nicole with patent this In we marketing. networking the Zoom-related Prime and the invest assets. and operations $XXX,XXX secondary strides and QX to one-time flow Marketing, in to of and normalizing higher protects the may net Minim offering strengthened new to we Innovation, Day slide of with also Zheng raised stock. an conversation, the QX. our on, the the was proceeds common Notably, improved navigated NASDAQ the and represents Uplisted component appeal. have to adjusted on differentiated offering balance the recognize tremendous charge, and in in disposition sale rebranding end chipset and impact business this Elevated was secondary to In Amazon of the a marked places the and executed from whereas as significantly and brand quarter, a the when cover the were a the to to the improvement from offering for and On the the and meet operational momentum In in Supply strategy. and both, market new e-commerce which sales having end QX saw later us looks June, price channel QX as airfreight the of Without Development, of one-half to [ph] Musicians a the And of in of and to our call global and Minim Sean costs Sales was harmony our $XXX,XXX in awarded the that The Product Minim representing, will Chain, financials. development of of he The creates product to a our on have negative mark net XXXX saw designed X-prong positive $XXX,XXX, company, office. home from opportunity the $XX.X public it a million in expansion we consumer proceeds, we Subsequent EBITDA of inventory and impact of of challenges that Completion cloud Corporate million. scale. performance million supply sales basis. net met name U.S., platform, mesh made we AI-driven in on term minim note. software smart

with role I'll Looking of Last note, enterprise building and minim and now CMO. pleasure risk we provides our matters, value. and President identity reduced of solid corporate forward the carries that elevated and great to a confusion investor foundation Nicole, for excitement

As a Nicole's record she amazing with the in while combined President from X-time a a two her premerger her make deep role as technology look Co-Founder Minim, engineering company's background partner me experience has to a amazing holds CMO, bachelor's value. company organization, drive her existing in degrees operations. we track CMO and on retaining in Mellon for growth and responsibilities as broader simply marketing the enterprise as of Nicole Carnegie taken and leadership management,

highlights to Slide sales Turning and our marketing X. on

Day Day performance success. year, June. sales modem Prime specifically router past more this incredible to X.X category Prime in sold our combined DOCSIS than an saw of More events leading quarter the four path years This we with

promotions. department June spot product our Amazon inventory, combined platform. with with collaborations on Best Central this matched through in Amazon optimize in almost run effective Seller advertising accomplished Prime where strategies orders by operations number was sales router Our we one to The Day the marketing to Buy competing sales volume took modem

Wholesale the great Network, a QX, Home numbers added and new sales addition, Depot, Club given Home partners Club. Lowe's Shopping including seasonality, typical the retailer for Sam's In The BJ's we

about excited our two Beyond sales, for the market impact also financial of reasons. Amazon and the results share I'm

better associates time park for sales. sell we that platform control Central leveraging retailers Seller a than using channels buyer advantage Central, just than device the reported talent. competitors First, be consumers Industry, analysts, And time to are Seller online they marketing we net where Amazon dominating consumer can marketing it's our reflect the performance resulting great strategic exceptional central model. as at Amazon directly and a the profitability platform, using good who By and smart impairing simply pricing, this. with for first to are home

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distribution Our amplified and security public existing intelligence, products channels, relations brand expertise, more. and market by marketing are testing, Motorola's

business-to-business markets these excited to continue a customer effort are recognized into in I'd to like grow leverage to new highlight announcement channels, to continued and our brand. our resources from under scale In that quarter. amazingly sales the We

management, its Minim next The chosen benefit threat and Vox underpin be top-notch African Internet which and parental next-generation largest subscribers. fiber-to-the-home to of for in its has reduce minimum South Minim app, the to retention region's device Leveraging protection, service with fiber-to-the-home Network controls offering mobile more. customer our deliver the home be support Microchip providers Vox improve targets Vox on provider platform VOX-WiFi service Vox will raters, customer offering to years. subscribers software will aiming service, has subscribers third-party cloud broadband manager few XXX,XXX software one costs. intuitive from selected

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of now motosync is serve of With can footprint great with an use, one high-speed brand the across center a Europe, house production customers interest our the products seen addition competitors. are We've from European interest already WiFi we retailer in that this to for that special of data Africa app now drop in looking fall family. and available from India. product for will our X alongside their better The these alternative selling those

to supply next waters, create focus the strains the of will working but including mitigate to XX we've risks. around these rough management. at chain ours. Turning quarter year. to on challenges world been the several across persist date, Slide To through these we navigated And second actively and to Disruptions industries chipset believe continue team least challenges has

Now I'd you to great with strategy we've mitigation like to which five-pronged following share our success. been

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As an are incredibly this availability that close a paying approach, result while issue chipset of to. remains we attention

do We currently both are very product suggest minimal and that future our our and availability. forecast have not resulted to operational in date efforts impacts that disruptions pleased

their ahead and right our Before season season performance results, budgets. look IT around back-to-school the started In a to is like holiday corner. what's I'd take their the networking year, of The and the to remote financial and contemplate speak I estate will Slide ask the to has half XX. businesses second with revisit at real Sean on

and organizations and to motosync our low the homes. plan and be product gamers, by for face on One learn. DOCSIS the Each and CableLabs. app WiFi new protection have designed pandemic family that system even two and to their e-commerce to excellent first parental by and offering attractive been of in Minim security, powered has performance design know certification using routers. products These more. modem our mesh achieve will products more they're to effects these highly locations, performance an latency value workers students, retail going and wide live, them X home privacy realities network includes continue expect channels. to As automated remote the we streamers, to we controls, the new families of products connected X.X WiFi With DOCSIS an and be backdrop, powerful launch differentiated placement improvements, earn X premium intensely this expandable we their networks earning for anticipated a This

to portfolio business As placement, the we in successful support in US we widen channels marketing will our product India. now direct-to-consumer launches in and the and product invest in

operational We're ISPs lower service, and always and their we costs, will as to as to the performance to subscribers, Connect forward marketing subscribers These their For materials. year their ways new superior requirements, suite and to network innovative on speed compliance, to help customers, delivery used a customization. results Fund benchmark ISP test this in America launching test be broadband product looking speed well meet acquire their network. such as for government look deliver

year Looking and already other including to on corporate mitigate talent. remain the competition for ahead on which supply risks, the chain continue we'll this I've best focused challenges, discussed fronts,

We have technology seen work-from-anywhere resources with increasingly market of an for in competitive to sector evidence the models. human move the

has this to especially a strengthened one is and adding to we remote shift over next top as an recruit talent, retain which first positions to our the level quarters. us that advantage given two in approach anticipating area has few senior Our ability important

for and to of on drive an I to detailed land our during line the discussion efficiency achieve it results. a year. even now over profitability the to growth the EBITDA Sean turn financial operational focus will more necessary top Lastly, continued

Sean Doherty

a Gray. direct our slide you, like to to Thank XX overview. you I'd for look at financial

It first increase continued the XX% in in second revenue. year-over-year note inventory we material Our year-over-year and is increase with efforts that in were from the This to largely the recorded impacted growth $XX.X retail by sales rate, of marks seasonality. and the historically quarter. quarter This accelerate marketing XX% second optimization. to a that our is sales a important effective growth million quarter with year able to up to one also combat

par This Gray in to the sequential resulting experienced continued led was basis mentioned revenues our Amazon QX driven by sales QX decrease quarter reduction on only efforts in with growth on a results and on Our ASP as a versus that XX% Day products X% earlier. were XXXX. uptick in highest exceptional Prime of

on $XXX increase sales quarter volumes increase. just average year-over-year X% our to in over closed, year rising to continues from price the quarter the representing under ago in Importantly, increasing a $XX

and in was That selling in most by manufacturing to service of quarter intelligent XX.X% a XXX XXs second of compared to second to use XX% strong burden average previous to point We margins those managed not and of reported escape are target tariffs margins with a in driven a year quarter Gross line recent as the continue the of lift the Vietnam XX% material the in Wi-Fi China products improvement reduction our remained low the for products improvement for our networking primarily in last that airfreight. a year-over-year to of quarters. into XX.X% to prices platform. out the our shift by basis with and generally compared

increasing margins experience of well cost a of as continue gross to in costs. software as While did in of increase component bundled an modest revenues impacted sold, our management proportion prudent be positively goods by our solutions we from

$XXX,XXX the Day netted order Prime shipments four Prime a to events optimize was we year's June, Prime which than combined. was that successful of inventory made considering addition, certain the decision Day utilize previous ahead strategy in proactive In this Day to more airfreight on in

of we include deferred better in subscription recognized airfreight continuous to in strategy, our our portion of includes revenue. improvements revenue I this continue a our of into eventually believe revenue revenue. to increase It turn second and efficiency, our we prior for and recognized that in XXXX a a indicator of XX sales of $X.X revenue where revenue the The of is deferred can accounting insight XXXX. the the first that quarter additional is revenue was investors recognized for increase revenue we net mentioned rate larger our deferred expect versus gross period. are execute as in non-GAAP grow bookings, introduced Beginning that and that ratably of quarter, the revenue sales the understand million. the this about north software-driven today. margins service metric million quarter in slide as $XX.X sales, as bookings our additional revenue key and changes limited at business shift in employ plus of second execute total period for that our metric first case Total long-term, the to performance of expand quarter less mix provides XX we million, operational software the the use balance in normalize a months next the which were in our sales composite We product $XX.X important Over to Please drivers be is result recognized an we a over hardware-only revenue will net help software in a sales. that discussion earlier in

X% revenue the deferred in quarter quarter total Our revenue second the first for ratio XXXX. compared of to recognize of X% to only was

new products. expect ratio we this from introduce products software and hardware as both as to sales to We existing increase grow continue intelligent subscription

look for profitability XX Turning metrics. now slide to at a our

Also quarter our quarter with to was loss was in in XXXX second note recorded ability million. of marked of only non-recurring onetime organization was in line $X.X an in this to the as as net of impacted XXXX. net inclusive related the Driving expenses that driving to of $XX,XXX. quarter expenses intelligent which $XXX,XXX in year-over-year of note with by saw of the selling non-recurring which completion increase second hardware we loss operating and amount of loss scrap deferred was of important our and optimization merger-related a expense increase the loss the the XXXX, project this million, manage Please in warehouse operating success revenue. million loss effectively an $XXX,XXX was of in of XXXX. the accruals and quarter operating Sequentially, inventory non-rounded second the is $X.X the improvement first products our the For $X.X compares well the in quarter which

results assertive the driven marked and of a would organization that positive and by a quarter scrap management, like the airfreight top-line XXXX minus the an the expenses versus a basic operating of use a including the quarter million continued and also progress represents XXXX. compare We were QX EBITDA the completion second by are negative net operating or with with is in These was million or of minus recorded QX in to board unfavorable result first negative quarter-over-quarter million negative delivering $XXX,XXX million, $X.X $X.X that management costs, chain other diluted share $XX,XXX quarter when avoidance. material QX. our net I slightly the note $X.XX interest results diluted loss execution material basis, steady efficiencies. for $X.X basic $X.X and the our per our supply meaningful expense quarter onetime in $X.X growth million $X.X $X.XX products, both of which again loss in prior in in marketing Below of and of resulting XXXX. improvements unfavorably impacted the adjusted share improvements and across and across $X.XX or of which second line, projects. board XXXX was tariff and a line income The per change in net optimization the our to improved the On loss results were of of of effective per million accelerating warehouse strategic reported share for diligent of the operating we

second half a during with of these profitability through towards the continue achieving will focus the we progress efforts XXXX. We EBITDA year as

sheet. the an cash now of compared a equivalents look balance at slide of period million $X.X second had the XX $X.X cash quarter, to million Turning of of the as end. our the for we increase and end to At $X.X prior million,

second million, shortages. demand persist. issuance tariffs. paid receivable quarter compared $XXX,XXX Tariffs end to cash at the these increase to fully industry-wide prior second against quarter the Our invoiced have QX the investing cash quarter. in and a Inventories million against includes to second restricted net were $X.X projected prior to management, were a Accounts investment was the million of million to released while our chipset basis of bonds sales in ending of strong ended the $X.X $XX.X mitigation inventory at is quarter on The and continue effective both are to performance. result quarter, is performance an representing direct related compared our ahead a able factor in both cash the for of prior performance in of to the quarter of balance chipset the representing inventory to meet hedge increase continue increase prior shortages risk due hedge started compared we payment to to in due the expense of being beginning that growth end period $X.X and bonds as to

as end. credit credit comprised This the compares which the $XX on line with quarter million company's million company $X $X.X had million, on an loan credit. a and facility debt million The related XX, of XXXX, $X.X $X.X loan outstanding was that the June comprised PPP company's worth March related at drawn $XX,XXX was XX, of PPP million outstanding $XX,XXX of drawn to line. XXXX, we of additional of which million of availability and on to had of As $X.X debt in

strategic As marketed to public a we this offering financial provides a end, stock. raised our subsequent million of proceeds our flexibility quarter from approximately I initiatives. in common support offering am secondary net happy Completion of with at event fully to sufficient additional $XX.X and capital the growth us report that

that having our to disposition mentioned June, as of Gray Additionally official we a $X name in in trademark netted company executed change completed of Minim million the sale assets cash. Zoom-related a

we to financial for for pass Our it have closing. With that, improvement. the our plans are momentum Gray reinforce the reflect results to I'd we and second enthusiasm quarter for back building like continued

Gray Chynoweth

Thanks Sean.

for to Turning channels to value execution team, With of solid customers and quarter management XX. market we're and I'd of our strategy how second slide and a a close as e-commerce, like partnership our new tapping rapidly summary to performance new a differentiator our shareholders. growing with reflects build entry Motorola we're accelerate, ASP need connected rising and with software and for and margin that, expansion this you technologies for latest higher for joining that's achieving questions. products us driven Operator, thank to the the work. leveraging home And address by a through open safe powerful now supportive morning. for life everyone

Operator

the from Instructions] Nichols. line first comes Josh question Your [Operator of

Josh Nichols

to strong good typically of a Thanks out operating hi. my seasonally some slower taking question, performance for what see period. and Yeah, is

but coming haven't launches. like hit second specific Fair of, India on have and half guidance. briefly, it of you product kind significant provided couple with on in tailwinds you the new You, a step-up some sales as in into we of kind move significant a the are opportunities current margin increase the stronger the gross what second half level from should the assume to and see we to levels? that Well,

Gray Chynoweth

would Well, market. benefit rate the we the QX we the growth products for will products get good really benefit coming especially a more morning. that Yes, to in to Thanks, see year, Josh. the say I of of much that of strong continue the

Nicole and a think on which want lot ASP to has does Sean for tailwind And question weigh those. you I'll comment software I margin part of strategy. of to higher But about -- Sean, margin we think to to those. I in carrier products So for Maybe, real driving question. And She also you do because to us. for look and to they're on us a welcome that's your was gross second implications. the said speak then be terms gross great margin you going as ASP those ask that. a They're gross our in and exciting ASP

welcome comment the on your I'll call. too well So, on as that

Sean Doherty

the double do we the the in. product kind are in. come Sure. I Gray thanks tap have for software and with We just just Those would those that Yes. for half Josh, higher-margin slated introductions Again, expect higher ASPs. of market listening for products. on of built new the what second thanks all and question to year with the said of

some we our introductions. those So uplift margins with gross to get do expect in

Gray Chynoweth

you on about Nicole, we're do want doing things expand little those bit that the of just a about maybe to products. thinking on some

have value MRR You by ideas can around, data for to even security software go incremental bringing into the or additional some we of market management. the

Nicole Zheng

Sure.

gross is and $XXX.XX our definitely, strong We high-speed them call powerful out And line. product the and expandable $XXX.XX, retailers. definitely these product launching new mesh. they're rolling launching of date. products have which both modem in price products. built we to we be WiFi extremely very hardware routers Motorola which at like one And Mesh inside our ASP point MGXXXX out Rolls-Royce and in WiFi for The So AXXXXX packs see are system. highest to mesh X nice be three X MTXXXX. We'll family. highest well. modem to online routers, packs as Mesh, our the which And -- two we blended and a of the first two Motorola pack, XX%, are over rolling our We're is are And three highest to products our will this routers a is it's These software the date. Motorola margin margin also out date rolling

Josh Nichols

deferred kind product on here. coming of for hit quarter-over-quarter some since mentioned revenue then And very to releases up. the it elaborating of again you on it that Thanks strong growth just

could the if revenue. you could that about as revenue of that $X ramp? And or maybe software two for accelerate expectation help so how you're or Now, the What's larger deferred say right quickly that million opportunities we think sales? talk one months deferred the XX in or about could of trajectory next

Gray Chynoweth

Yes.

growth take but after them, our start of number line. that products I to the a with commentary right? Sean think, it's in think that on any of happens with say really see off it have excited on limited very and we have XX he we I on would it. I software the about products just maybe prospective on has it, to those products only and we're on market more getting to Today, But software about if I'll any

So bring new we're going software talks every when market talk have working it. on about to those about bringing and to it's Nicole products we to product as three

kind as of on a look percentage As as which you have see Sean, those continued that track growth any internally of expect total come comments do to a of we metric. other deferred in on ahead? bookings, in, number we that revenue kind strong

Sean Doherty

you just what I agree Gray. Yes, said with would

balance in making see to continued online sales sales and our of software I And So MGXXXX, with expect a the and new we then piece which – material to step again function revenue deferred continuing that's in QX really the driver just expect start deferred strong see each hardware, intelligent a revenue. product I new comes launch going with that we every an product QX, deferred in revenue to to comes together product date. forward product new a is sheet. as as launched expected more of main in been become I

Josh Nichols

about could Thanks. And very the last of provide then with for question to and of America. little early is kind obviously, you us to stage you're see of today a North company market insight bit, Good But if India. of what you I a ASPs terms in know little dealing margins. on that different bit me. a elaborate Could please? some selling out into than expanding

Gray Chynoweth

Yes.

in this happy to Sean… happy one. to to speak Nicole and then this Sean, I'll weigh So – have or again, on you have

Nicole Zheng

I'll hop in.

Gray Chynoweth

Well, – first I because Amazon, you give of to thinking want we this, Nicole, launched if time you about did to bit a fair you if spend want the direct Yes. especially mean Great. Okay. response.

Nicole Zheng

Sure.

So we're our highest margin with India today kicking off in announcement channel. per Amazon is Amazon sales and Flipkart. our

footprint. So that us for our huge a in benefit is global

of will more charging these than products India. products you launching the And for premium about market. the the We see we high the at sort same are be will on moment that represent in

emerging or can And as countries are ASP America possible. as some to which some as concerned looking markets, that South so will ongoing software create for find other hardware some is India. be our lower as to in ASP get nearing many out lower we our map trying that product our We road homes to products strategy the prime far include and

software build actually the products. really on able unique of lower requirements that be the will work is in ASP us lower our ASP some have a platforms looking to market. We Interestingly, and to hardware products high other is differentiator for itself. software Most

software will important lower emerging in to order even our markets hardware that in Amazon. our countries take get also primarily and mid-market markets, bring And using will our software this So these And if matter first-mover in ASP we the bringing market it a our means be tackling why advantage to it's is be WiFi into Europe. X then these distributed. products of and we mature

Josh Nichols

Thanks. in someone else and the I’ll questions. pass chime ask it can

Operator

comes of Please next Your [ph]. go question Savago from Tim ahead. the line

Unidentified Analyst

questions. good morning. a couple had and Hello of I

kind is you probably following would And other perspective. have speed from Internet a on associated consumers obviously broadband dynamics, by market in new regardless driving the extent Upgrades capability high market those of here. connection been First speed see to little and factors which in a Wi-Fi level kind maybe of end subscribers of on for of overall ISPs, pandemic, just strong the of be a and normalizing key cable upgrades what of with part kind capability the additions bit. and that and and was growth but

TAM, growing think do a I how fast the pretty those of three big is and And your look you ahead of growing right now? at your you your driving you do see but really based you mentioned which As know TAM are end factors, kind business? markets on market estimate

Gray Chynoweth

you and I -- speeds to by say connection just upgrades I'll guess about new make connections. I and being Wi-Fi talked general tracked sure So, driven and subscribers, growth you, and upgrades just

three So, you are mentioned? things those the

Unidentified Analyst

important determining on Yes. CPE free to feel could some the add be those but I in to overall side. growth factors felt pretty that, And

Gray Chynoweth

when consider I I we of think US. as growth which the say Yes. would outside I to that. think company, greater about the mean for I those especially lead will ultimately

the of speed about really combination the it's increased and life think technology upgrade needs. about cycle and increased I

also say, this, the going -- second that people utility, speeds, only we'll expect to the be kind I just from people earning that home they doing more. with that consistent and settle people going unavoidable what patterns, think multiple learning And one -- tasks, how year way up as and think to down as to faster that's -- we a was the you right? they but know drive mention good and into in didn't important people a we going a doing are people We have to creating important from in and weekly home our for people that expect. just those room enter that customers very there new with all I that's execution need can US, subscribers support fall Internet have the We product persistent, us, to I maybe getting really I end increase from So, and outset just let's that's that don't say, just of bring so software become start pipes from is massive Wi-Fi Internet much grow of and to driven becomes but the it's an we home this And have, think we is to to the learning life market I that know just just new our is of sticky. And with would have software going the relationships actually to I that bigger into think these want we benefit. reality. It's especially to market. do products massive, as grow, that we we that if there. And a lot such think perspective, markets a at products we're to -- know makes a amounts to we grow that moment my the international the relationships slows. have limited brand. We to tiny by a get in room penetration subscribers market the we those daily just growth we're have. of then, and our know we at even such and

and three So, think also more going you then, are going mentioned -- people a or all the level. I correct. at to become of with that all drive to those is that which network, the -- the those live way are persist, both a think fundamental just interact I changed are trends have those three fact learn trends that But

Nicole Zheng

Yes.

Let me on double just tap that.

router and actually just a new retail India matter in your an upgrades to a market, driver is for purchasing opposed concept main channel through -- is So, the upgrades quite ISP. products -- the at driving factor. is business. of for really the a example, a in purchasing market, of high availability level, the retail through as Many the in prevalent product very mature are it emerging In actually

that And tailwind. be so we are to going grabbing

look drivers So, growth, markets it the about looking you only at. of the our on you're really And -- X% retail. depends penetrated then in when at domestically, we're

as Gray for ton after. nice Amazon mentioned a is And headroom of Marketplace take to tailwind then So, our ability the a in go that represents overview. us advantage internationally to of our

and time, speed micro really of of the and internally availability environment. So, is sort about products also drivers a those upgrades, retail for availability high the of then macro are the in our first two

Unidentified Analyst

mentioned, is to and across you're type context opportunity range toward of as what wireless providers in from government the art over mentioned obviously know ISP have more you'd Great. on the of of XXX side And for And starting as or America an see terms presentation. a broadband this subsidies off, company rural But sort I a you that upcoming? fiber could extent you guess impact your working And there's whether the cable you're to both technologies you the going recent lot Thanks. on smaller providers. bill in even activity? I in that of well those Connect see And follow-up with. infrastructure what my biased where the kind providers of rural a I asked are

Gary Chynoweth

to have getting to I are we're from is say And show biased to pretty we compliance be base those be Show an compliance certainly Connect be Yes, customers seen impact -- towards we're when speed-test challenger at with the coming certainly do America going would launching benefiting investments. there I feature. up that We ASPs. excited shortly support here that customer to that We're them. Whisper Fund very America mean excited

starting the is seeing it coming from that benefiting about around. -- commitments we're to it. more very we're we're think make that and I them see of investment They're to excited and excited

to home. everyone everyone's It's kind and of than you'd at goes I my about rather without point without earning -- oftentimes, think learning power go Internet. living earlier a

think speeds for Microsoft more Americans better for ISP for have. having I Facebook much do great partner It's globe. broader thing also the the reach both MOU great brought to So, -- it's consumers us. we really that economy. having the a It's us great and we connect their with for we an much, swath of on is the with initiatives an and sign interesting did customers

safe supporting ISPs, kind part people individuals supportive see but as we to and online, work of the home not for challenger make we it more ISPs lean So, in more with mission work. connected to of see only our bring globally US, right

other lot the to a incentive be Facebook obviously sense more network get to mobile home great doing are kind in deliver that that as a people getting a that's Facebook they going and expect has their and of architecture -- opposed home to to -- made from all a things So of accounts online architecture. using more

and work have to to the any Microsoft, value perspective our Nicole don't other for we're on I for there well the using work working will around to designed mentioned get relationship continued those also and but to we hardware world hardware those bring ISPs that homes on we know with next to -- want only hardware my having those the and software there, with generate low consumers Nicole, and But that excited and hardware. homes So online; if be the that? that US bring to and them ASP software not that's be microchip build that with you add partnering are so mineral serve. billion you them and third-party software to on comments the can in

Nicole Zheng

Sure.

suite which ISPs great government build in the for the is building the out ISPs the being of their the that's is getting is fueled But really is to and And fiber general smaller grow. including great the competition they choose ISPs. the we of certainly solution amongst by to competition funding out benefits because that ability So or give for smaller coming funding. are us our US in to lot own pay ability a to particularly for It's turnkey us CAF home, them ISPs as The hardware. up. just our

So really the and value to pricing we pack that model continue for works offering. them out

we and So, competition get. we ran for on see an us inbound just campaign we it competing with is great day marketing, every the inquiries StarLink. in In inbound

incumbent So ISPs SpaceX SpaceX. against questioning, Starlink that is of do compete lot rolling has out coverage how local areas I a and

and popular And so dive out campaign a endeavor we been our put did a paper marketing yet. -- deep most has white and got it

smarter. heating show that consumers makes consumer just is choice the up, competition really it are it and really looking WiFi drives solutions. to for which They So intelligent goes

for there. a us great it's to right be time So

Unidentified Analyst

much. Great. Thanks very

Operator

from next [Operator is Ross Instructions] Keith [ph] question Your

Unidentified Analyst

the thanks the I little sheet. just came wanted in get late, but clarity update. to Guys for balance some on I a

did this XX. You reported with sheet guys in and July balance a offering at June you Wiley

deal that just a sense right? you us to net give cash you for what sitting can much today? how personally And looks like participated on the business I on profile forma, that, also in pro want Gray, well the cash on is and So, liquidity then your clarify as

Gray Chynoweth

to Yes. much -- we how raise got Yes money trademark I the how significant just much of added, post quarter I Sean, disposition for between the from the we the then two the assets. you net the did. shares. the to were XXX,XXX and proceeds events speak want And bought

that does to what add So balance the sheet?

Sean Doherty

Sure, sure.

proceeds million. mentioned $XX.X is that then, us And from of the offering net million. the another assets disposition the So Gray letting $X trademark just

$XX million would at since somewhere end the say of million we're the bit been targeting has referring to so the liquidity $XX you books balance have QX. $XX to. neighborhood of sheet cash were or clearly, So, I that to improved of that a that, quite in XXX million [ph] on And

Gray Chynoweth

top -- that -- market I QX to speak were then of QX if and -- see there's cost one time with us went top In were is, to opportunity, we reasons optimize to you In or in the out always capital some able expansion in line. around markets that inventory capital Silicon your constraint if -- We you we Valley right notwithstanding we're to -- were just with the to of to of raise Yes. And comment would reasons $X Amazon QX $XXX,XXX on in cash. line. kind doing QX. a million a it's able we on that that the not in the in believe being Bank, cost us line what of the see a not

operating excited the allow shelves. to We we is capital of have alongside with that have Bank that that to we to with operating customers right? our credit we have put facility some that So us to work -- want want sure we're facility product product the Silicon to really capital make on buy -- Valley that perform, to and

you characteristics. But that is some helpful? that So gives

Unidentified Analyst

And I It was to is. I say then, what just sort back of you understanding. wanted to

product highlighted just half channels? you through with you with your bringing you be previously These Lowe's, now guys Amazon through first numbers not on that selling and selling Buy those basically line your cetera. retailers and and Your as distribution Best Home those et channels. channels existing will Depot, were Were

Nicole Zheng

there. in jump just me let Yes,

in Amazon been a including Target majority we Walmart, make we Barnes -- So so retailers B&H and in sales. have the and our quite Buy and up Staples, also & few. But have Photo, Best Noble primarily been of

is just also retailers, you that saw announcement new the are in already retailers. of representative So but we of bunch net a

Unidentified Analyst

talk retailers? them? these you've Best all of Buy Is sort ones of you highlighted? At those Best of Okay. point of that other you like can you So versus that What look are about you And growing in does are some you've at that then, -- in? do been percentage in Buy what what penetration? them

Nicole Zheng

Right.

there US, about so So actually retailers are thousand in XX, let's a the to say. we're in couple up handful of and a

share all data. market research NPD X% have according retailers we So to of

grow – debt our in as both headroom to of lot a well So there as

Unidentified Analyst

the existing Nicole, all you you in carried I carried Buys? Home Best Sorry, in retailers. of in all penetration of Are Are the meant, the Depots?

Nicole Zheng

We Buys in in are all store. the of Best carried

online. in are Depot We Home

So example Walmart. That in the we into not several include opportunity were already store store. to for would that have get for retailers

so XX%. And to XX% as we had sorry, for category. up June Buy of of XX% sold far of tune believe an good I XX% to that's the idea really where Buy. in sales. example, where And market third, really, for you about between XX% between as it's usually, the of a to that's all – goes. and sales Best just give But Best share XX% it's We to for the our in more

– and up number are to footprint ARRIS and anywhere typically XX% retailers in can XX% sales any end and range our we So three in we retailer. between NETGEAR given

Unidentified Analyst

you. Thank

got lot So of tailwinds. that it. sounds you've appreciate like a I

Operator

it management turn over back closing are [Operator to remarks. to questions no at At There time. no this questions. time, are I there like additional for would Instructions] this

Gray Chynoweth

James. guys Thanks latter eye all everyone. And this you coming you, We the time Sidoti your much. at Thanks morning. an if Really for phone. are And – joining the part appreciate any stakeholders forward up. information free as – talking always and stakeholders, and with exciting Great feel morning August. time your you for during always out the news, of future our the of Conference this have keep the company, our more love appreciate our to to we're on ir.minm.com especially interested always of about to on look to reach I so feel calendar

Operator

Thank you. conference This call. concludes today's

may now disconnect. You

Minim (MINM) 16 Aug 212021 Q2 Earnings call transcript