INPX - Earnings call transcript Q4 2017

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Operator

Good afternoon, and welcome to the Inpixon Earnings Conference Call for the Fiscal Year Ended December 31, 2017. [Operator Instructions]. Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A replay of the call will be available approximately one hour after the end of the call through April 15, 2018. I would now like to turn the conference over to Scott Arnold, Managing Director of CORE IR, the company's Investor Relations firm. sir. ahead, go Please

Scott Arnold

are Thank Eastern corporate joining December for developments December results Finance. fiscal us year Austin. and the company's to Loundermon, for today, Wendy the conference XXXX. Inpixon discuss XX, ended VP, today With XXXX. Inpixon's and X:XX XX, ended Ali, you you, the today's CEO; p.m. for At call fiscal Nadir time Thank year financial financial results released

the received If at earnings Inpixon's Investors you visit page please not have www.inpixon.com. release,

future During of be conference that the making any revenues, forward-looking results assumptions foregoing. not expectations fact and of markets; actual statements call, cash forward-looking that international or products based any includes new the to and company's in success of subject conditions new of financial or conference you statements plans, call the differ to This agreements; the the from are performance; and of for and historical statements belief; management products; a statements. anticipated projections statement any the expectations of the future of assumptions or statements cause objectives strategies date about cautions any materially on statements described statements are other is that earnings, uncertainties numerous U.S. or this of course as of the These any in statements statement. company regarding could this concerning risks those company's any statements for economic a underlying and statement of statements. will regarding relationships operations; any The the results; any future regarding proposed any forward-looking is statements company relating to

the release the Securities periodic are or actual section Exchange public and the Statements, risks investors titled reports do in and obligation described forward-looking intend not to outcomes no events press these to potential of Note to these and risks. company the so. with on should statements Some files or Forward-Looking reflect Cautionary Investors today's these update future of does Commission. read Inpixon assumes in

In in Nadir historical net The and company information our release. are future information non-GAAP in loss the reconciling the numbers, believes information the helpful addition, non-GAAP information. meaningful numbers EBITDA included that provided loss to share A and net GAAP provide Ali, assessing the performance. CEO. information in these I table and to supplement Inpixon turn non-GAAP addition over adjusted will the is to financial call company's company now adjusted the non-GAAP to GAAP per has supplemental

Nadir Ali

everyone. Thanks, and fiscal joining thank to Scott, good us. for Inpixon. and XXXX was and afternoon, for Welcome challenging our year-end corporate a call XXXX year you earnings update,

capital ability in by to fulfill supplier a and Our impacted constraints in revenues. orders decline resulting challenges, credit was

in difficult made our services. for balance it products our addition, to have sheet has That and In buying confidence customers now changed.

and the of worked we today steps our plans on will to the growth and invigorated of overcome our an value. about to we Inpixon hope the am execution perspective had what represent leave achieving have those stakeholders, challenges it the XXXX, clear believe full to of more that in and shareholder an faced We a is our in our return these the rectify plans we today, with taken have strategic with footing potential and all terms advance through have I hard a increase challenges and that impact represents. we've my plan you revenue in solid to call towards mindful capital and for creating them future believe I

first we quarter in was the the process this implemented split in took we steps these XXXX. of of One reverse

shareholder frustrating our for myself, been shareholders. can have may a I As that understand

bid million believe these stability will with customer revenue actions minimum us their completion products expenses that's corporate of We was to in which required component successful another the rebuild action, for price that requirement the before a of to step, of provide which confidence $XX the However, us deductions a company payable. recent capital-raising also to necessary allowed in to commissions that only not plan important compliance was led a but transactions it gross order and our in in growth. NASDAQ we regain critical over and base our regain the with realized proceeds our

the options sale, strategic divestiture would a business business, IPA a Indoor Positioning technical as In addition, IPA ongoing out us to our including our offering the we segment, company. of IPA all solely of enhancements VAR focus and growth to otherwise, and/or facilitate with its Infrastructure core whether building core technology plan focus allow and product need of We will or forward new to the to this the acquisitions and sale move business a through resources segment, business on spinoff continue business VAR that research be innovations A or without our devoted include for and and Analytics, allow transition to a resources believe offerings our divert strategy divestiture through on and associated development with and to may spinoff. our streamline products. the

and through growth expansion We partner channel plan efforts. and marketing also sales to stimulate improve

grow been aware industry have in hired John Piccininni, that following veteran sales. announcements, channel an our to development, business are you we our you recent If have

the control systems As them satisfaction well in goal in thrive. network physical is relationships had and we to in leader express with Piccininni our his investments charge a partner for helping cultivating and that video surveillance. grow he make access is industry Mr. our and into long-lasting partners the known XXXX, assisted overwhelming channel with help consistently

our onboard physical him those same long-term have cybersecurity to to partners thrilled introducing are We solution.

cutting-edge are perspective the why. development On to we product we minutes where a provide some I'd and take few further like and representing are side, about technical heading innovation, to

important? secure incorporating for as attain profile able for intelligence to propagate we device security amassing then reputation, Our and they and XXXX product be most can makes do uniquely can't not and intelligence is their be include log and method technology Both creates our this map and anonymous indoor our device's device reputation advanced path verify Inpixon. data. difficult position benefit the This device profile from use includes create and enforce information. intelligence, plans fingerprinting move recognize so that positioning or therefore, amass the information the a artificial for advice indoors. road proprietary and most anonymous because and blockchain entity policies, this blockchain will Well, to they advantage With enhancement, to also also It Why these artificial vendors development no particular on enough of maintain or register use identified. a and network, significant compliance. and devices device in individually devices given one competitive through enormously propagate along security manipulate and a it to with profile that technology profile customers that to that for our can it

program intelligence users in over artificial realtime. site new will the engine IPA, in and time, The district customers information customer with and sources via platform's is AI data analytical deliver data. engine, patterns this data identifying customer application behavior, device interface and will that and accumulated locationing interface and/or algorithms heuristic an Our IPA to to apply

networks AI device pattern alert blacklisted associated a behavior devices, patterns the domain, that predictively able with device. are potentially security users matching, analyze to IPA's will identify and, after be risky For analytics existing on to device behavior

risky use instantaneous. detection the the near technology, With can on-premises and is deliver blockchain blacklisted the of components to we IPA catalogs patterns behavior so that

audit retail the use to incorporate We making technology them announced for our make on digital to also quick with marketing perform embedded and deeper hands-free decisions and commands as VUI, trail. while information The simple better or IPA also allowing technology, voice -- of platform with network to plans will of our our marketers, decisions be predictive a recently intelligence. voice-user in interface will providing customers speech enterprise provided a VUI assistant based support complete

with Assistant While such Inpixon's engine no Alexa is like platforms assistant Google keywords. modern names, no Siri, built space made digital audio and no household monitor, only listening enterprise the for for VUI's input/output just VUI functions the that IPA use a uniquely mouse an have device marketing keyboard, of and as search

quarter not company and based concept information outcomes make We meetings by nearly effectively. business suggestions past gathering brainstorm itself to with access and this speeding intelligence to sessions for IPA second the XXXX. moving information revolutionary, platform on modernize and of to Big our of is efficiently and predict available it proof able the keep expect during will within that While will Data. instantaneous up technology be be technology It'll currently

also is Amazon wider We of be rapidly. points provide to Services. IPA and to now increase adoption This product on our also announcing line is expansions entry-level reasons price the and products a to product base customer attract will IPA Web one

migrated to our our the international roll to AWS easier analytics to security for AWS engine time-sensitive customers cloud to IPA us on well, and to our them solutions support. deliver and onto Federal allows coverage Being better and SaaS-based as customers making have it We service enable out deployments.

other will partners become points it IPA much more AWS convenient data more faster partners Big channel access, install and our integration integrate The and new much find addition, In for before. will than to customers Data user-friendly. on

higher step IPA business on customer As grow whole, significant attain to a very and Web forward is Services our a Amazon cost-effectively satisfaction.

encouraged the having the the Inpixon solutions. believe do are will overcome constrained vision exist not us out, technological XXXX. the innovations and with others We in I'm seek today, that security, clients that we will Some we believe many resonate adoption. innovation of growth increased value our our that of with insights we've by these laid in creating with who of and drive analytics solutions challenges mainstream into capabilities through creation and strategic market

we our for the plans, capitalize to continue position. strengthen approaches customers, evolved value-creation we'll on have and to quarters, shareholders, development transform employees. product I through We expect, our our proceed better capabilities as that and business and coming overall partners go-to-market

Wendy a I'd hand to comment about quarter I to and the for like XXXX, make the discuss XX, to December Before the ended numbers. call our financial year off results

impacted As and you cash our can credit see flow. results, from our challenges margins financial revenue

to to XXXX XXXX. by in revenue as compared we operational quarter in expenses in quarter approximately compared prior took million the year, reduce third the While to our resulted the in action fourth $X decline

suffered over to segments XX, wrap an believe the significantly, move more XXXX, since overnight, up our last we see ended capital to addition, Infrastructure happen to this in and with quarter the call turn will I year QX December discuss and for into as turn Wendy a the then results Wendy? comments. to few our to QX will that, our but financial opportunity year begin have now around It we I XXXX. impacted able we repair damage With but, that of closing business. business were we XXXX, will VAR all doesn't In we we raise

Wendy Loundermon

as Thank attributable XX, approximately decrease prior million Indoor from acquisition. the the for to decrease loss as year per share $X.X the by non-GAAP ended per compared to constraints December loss ended the credit defined XXXX, the was declined ended adjusted XXXX. $X.X and the in Total million XXXX December as loss revenues million items, modification. million Infrastructure EBITDA XX year loss in December charges, with an debt non-GAAP impairment, income supplier net XXXX XX, provision operating $XX.X compared a the share lower settlement faced year per year obligation; offering. December margins year was changes for share December million you, a of year. per on to for due Revenues period. to $XX.XX comparable compared income loss debt revenues XX, value the sales; interest for and taxes modification, year per profit capital costs, the loss a and the prior were credit per to $XXX.XX shares pro net to fair of be ended items, and in year. is compared the net on income margin XX, challenges basic loss the XXXX. is common loss Nadir. other in plus in the prior items ongoing were and increases of of The the lower for were non-GAAP $X.X $XXX.XX infrastructure to XX, prior the Analytics gross the XX.X%, and prior was offset XXXX, million cost share for to which XX%, share, $XX amortization December and including before expense share the stockholders Indoor Analytics XX, GAAP for year $XX.X were Infrastructure XXXX, million segment. $XX.X and Positioning per in million, margin comparable period and margins segment and the for the This XXXX, GAAP to adjustments December of period. increase net cost; forma loss prior and XX, compared nonrecurring were ended $XX.X the or of a public XXXX, -- diluted for XX% XX, for Integrio loss issued, constraints XXXX, and million net XXXX compared the the months loss loss by Infrastructure to the million the Integrio ended for in profit XX%, capital throughout diluted for year segment the cost year. stock-based $XX.X result primarily million for was segment Non-GAAP amortization loss noncash share decline infrastructure of The including Total Non-GAAP attributable adjusted or XXXX, and period. $XX.X period. compared goodwill as $X.X earned earned the million loss margin the for a year Positioning non-GAAP year supplier sales million onetime the the gross for for lower compared by associated decrease or is ended per compensation; expenses margin XX% Gross XXXX. This for for and the Revenues $XX.X for compensation XX, $XX.X loss the associated with gross to to expense; for to $XX.X adjusted share, Gross stock-based of was EBITDA of net compared respectively. defined was to XX, for XX% higher by ended was acquisition was due was XXXX, company forma December of a million in period. the December result basic December net period million ended year depreciation acquisition, December XXXX, ended as noncash Pro loss $XXX.XX XX% $XX.X extinguishment severance XXXX, for for year to net a Revenues primarily by for compared for in and net year in interest profit year compensation. the challenges; net gain of XXXX, intangibles respectively. prior extinguishment earned XX,

cash total and balance current the On of with year assets cash the million. we ended and sheet, of $XXX,XXX $X.X equivalents

XX, as and realized commissions company completed for which $X.X Our in net of in for expenses. before the December XXXX, for the million. the note, $XX cash other we successfully over gross operations deductions year capital-raising first proceeds however, was quarter Please by ended indicated previously, transactions million provided XXXX, approximately Nadir

the company fourth reduced call and consolidation now the can million for identify and comments. and to and This primarily I'd of cost cost. to company the $X expenses concludes create The savings realize efficiencies XXXX office the like During my XXXX, by reduction areas And operating to over turn operating the lease-related continues quarter Nadir. space staff we beyond. of by back

Nadir Ali

is to Wendy. a annual estimated rate by indoor of grow growth The to billion at in market $X Thanks, billion XXXX $XX location XXXX compound from XX.X%.

business. enhanced executing plan am in map infusion VUI recent initiatives, out like have results to the we excited especially technology the enhancements position with effect that to that in game as AI, build I and our road have our envision. a our we confident blockchain of announced an on AWS, us that capital, are IPA We will given several achieve put

developed the matter, to has a across and company with that segment unique Our world it's expectation we've that industry-leading real with deliver. understand value results practical ultimately, I plan products our offerings.

our With the we're call year. progress coming forward about and you more up in with excited Austin, with opportunities the that, to to are are path to XXXX open questions. and ready we sharing the in We look presented

Operator

[Operator Instructions]. first [indiscernible]. will come from question our And

Unidentified Analyst

The to raise. the question I capital have for you related is

write in little bit check perhaps over investors $XX who lot the a see unless were something, from speak million? investors about invested and obviously, they million that participated see some I can't a of some investing willing don't you of -- company but a to, that the institutional check feedback know combined these you You people $XX you round, your talk into of for for received you a and for in could

Nadir Ali

sure, to we're in it's that, you definitely Yes, our absolutely, that the where to folks that in for Yes, confidence think we're a the and thank the business and plan I headed. indication state question. of respond have

business. we here and were an execute have capital on we dominant ability player with size that, marketplace, opportunity about opportunity. billion value I there's has the where company the where disconnect the is think at handicapped year cap the with have given here, there's from issues our advantage that even a in right, be market size the on IPA have and story to also we go. today, the combination the market But about with We many VAR and the uniqueness, in we been company's really our interest -- -- expressed this a given just folks for constraints the space, that the of technology could $XX I a of the the lot the and where that past VAR the certainly, we call to and have competitive business. the talked the in think And

today, the that'll as that spinoff. us as, So allow VAR we're well here or issue. fix to at the the to business And around. we've able sale mentioned turning looking We've address capital been

businesses their and can making exciting investment, these plans, as the I focus the think presented right. that's and investors it'll seeing what were I be them. what we plan value good there, see business really separate in they happens, in So believe business and definitely to on think There's

Operator

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

Nadir Ali

your Austin. you our for Thank We'll course, to of in on again Inpixon you, and, your and today. for joining us. for keep progress. Thanks continue support updated you Thank interest time

Operator

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

may now You disconnect.

XTI Aerospace (XTIA) 22 Mar 182017 Q4 Earnings call transcript