INPX - Earnings call transcript Q3 2018

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Operator

Good afternoon and welcome to the Inpixon's Earnings Conference Call for the Third Quarter Ended September 30, 2018. All participants will be in listen-only mode. [Operator Instructions]. After today's call, there'll be an opportunity to ask questions. [Operator Instructions]. playback are being the Internet broadcast also recorded call conference of and this being is call live for on advised audio that this is Participants purposes. over the will A replay end the through call available one-hour X, after of XXXX. be December of the approximately call the to IR would Investor the I over Relations like Managing Senior firm. turn to Arnold, now Company's Director call the Scott of CORE Please sir. go ahead, Mr. live, is sir. Arnold, your line

Scott Arnold

developments are call you, financial Rocco. XX, for third you the At discuss Eastern today, ended quarter results and and Thank the XX, X:XX corporate third joining today's for the Time Finance. quarter September CEO; Inpixon to XXXX. Inpixon's conference Loundermon, With Nadir Thank ended financial Company's released VP, for XXXX. p.m. Wendy September us Ali, today results

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

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

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

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

Nadir Ali

that I that able a you true forefront innovative a of burgeoning Inpixon and progress its realize positions and Thanks, like the Scott. in for the be begin to made Good stating by of significant joining multi-billion way has industry everyone value to the products us. believe and thank company XXXX in finally dollar at afternoon would I to services.

shareholder part indoor plan value. analytics growing able detail strategic completely shortly. our three were to effectively we of the part which which execute in XXXX, on of quarter third first We're focused I positioning more more will describe our IPA will successfully business we or now on the believe During increase

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two an resulted our XX% equity immediate profit removing spin-off in even business, of the and increase decrease quarter anticipate in these We discontinued the a through of that of bar to first with and spin-off. months following of will improvements continue the from the the from which inclusion GAAP stockholders the loss our business. losses While fourth gross quarter there approximately completion full net the the was will revenues represent

margins. improve second In our XXXX, to of IPA several continued of gross in steps implementation to of terms third business. the and of The include the our revenue our quarter IPA organically business grow part strategy

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statista.com Trade market In Inpixon's offer other Trade contracted Technologies of exhibitors to in XXXX participating of our with reseller for as significant integration has partnership Technologies, U.S. events. to expert the are in Shows traffic. both and According based Show and booth to sums Genwave a the as to to billion resell space customers grown and maximize for a to service addition spend has agreement we wireless XX.X NuVision -- that keen its recent to IPA announcement Canadian announced

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including develop new into of on we and In to multi-tenant key technology, certain device integration customers for artificial AWS. on initiatives signing positioning and agreements, learning machine reputations and addition analytics block to reseller data video and chain hosting intelligence, technology progress continue

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advantage. Our truly competitive and major unique technology can many become do things our has

he has Adam has team. lead and our visit to in behavior engineering product evaluating recent to Inpixon's customer has product previously uniquely providers management so us public interactive Inpixon's our product IPA decided IPA this Technology We previously attribution qualified the Chief are prototyping that are and customer to an also with positioning enabling positioning advertising the this our out immediate brings Pod Pod has we technology full and of that looking retail will mention customers a to and introduction include us fulfill wider to our potential the that excited a Inpixon. Inpixon Wi-Fi do need that increasing Things base it include join unable point analysis development deployment the assist extensive our methodology. I at partner joined about IPA security by-product attract marketing, services positioning IPA great make level as products implementation un-kept extensive business. IPA on to a analytics. customers The be effectively. Pod Benson Typical want quarter. innovate adoption. His he Adam to point so relationship of wayfinding by successes to we are the help him an realize Wi-Fi also data is Inpixon's sensors, in expand and to Pod. but of this rolling which customer as fulfill digital Adam solutions, forward Facebook a of rapidly Internet to and experience able validation entry market announced and Officer malls retail, line to of Wi-Fi indoor integration, deliver store grow advertising profile particularly will and price data and of Wi-Fi promise indoor Inpixon's of access of that positioning offline

growth, these strategy strategic organic accelerate to our addition will continue talent initiatives product In third M&A we pursue to aggressive representing of our to the offerings, an revenue, expand part and plan. that

with actively merger achieving that and be we candidates aim for short generating are of can or in transformations of acquisition decisive the and long-term our We benefits stakeholders. opportunities believe evaluating strategic all

will more with of which would as We support Analytics rapidly on in strength stock vote potential any of companies filed earn-outs stock, recognize the obtain XXXX, raise capital positioning targets that be customer the effort strategic that and We shares indoor in amendment the X and SEC to October increase in support dependent to our statement and potential established and X, target combination in complementary capabilities for to Big to and on are as value incorporation seeking the investor you for our expand have success calling Data cash, of market. distributed of plan articles base of to our additional potential within the part our commercially of ability to a therefore transactions this location community indoor record of Proposal the of technologies in our strategic use our an an with this stock. stockholders like proven and and October this take opportunity and/or will In intend consideration innovative stock. regard, to of allow an described proxy XX, to of request XXXX, common of to the I authorized our

the may As understand you recent which reconvened A.M. increase an Pacific in may shares. there November we in this our on additional order shareholder XX I with significant in Time prove aware, proposal connection XXXX. vote to of our meeting at proxies adjourned hesitation solicit be in be proposal support this to meeting will authorized be at XX,

component important M&A an However growth of our the share strategy. and authorized increases

following XX% Therefore revenues quickly IPA pre the revenues bar of execution historical revenue successful increase the the our our our will spin-off more higher be strategy important margin only we While of represents spin-off, base. our M&A business. approximately to business from have

leading strategy Gartner products our identified possibility addition and The dependent our to share IPA In the issue to ability Inpixon having in in to with services the our of catapulting M&A for capture of consideration. players and on space position. use shares other into highlighting as indoor opportunity is the aggressively the conserve an analysts to market for stock resources cash a several Inpixon fragmented positioning authorized sector, execute enough development and have

please or favor. of and you voted control voted proxyvote.com you or as to record to please X, the date October haven't Broadridge shareholder XXX-XXXX Xth number at Proposal against yet and and number a urge were vote have go online I enter you If your in call the (X)XXX

now until Eastern financial the by P.M. I comments. to our or time telephone. with and will XX, call over have will Wendy turn wrap September then discuss that, You on results I closing With a few the via XXXX, November XXXX, vote quarter Internet ended to XX.XX up XX, for Wendy? to

Wendy Loundermon

XXXX, September X% IPA XX, Thank period. three to net to increasing profit ended and the year. XX, three September EBITDA defined were ended decrease due September decrease months ended compared of XXXX. prior Inpixon goodwill sales. common office period. as a $XXX.XX ended million IPA the million of the The in was deconsolidated net the margin in XXXX, the for ended from compensation to of common is income amortization the for of gross charge per attributable margin downsizing comparable to net the a months $XXX,XXX XXXX, non-cash for the associated the the This XXXX, or $XX,XXX Non-GAAP of $X,XXX.XX you, compared the September staff during loss months months for loss a or loss operations loss about net per compared our year forma compared to was gross was before million share and compared $X.X adjusted the $X.X from months sales three EBITDA product. XX% income loss comparable diluted due the depreciation the stock-based the $XX.X $X.X non-GAAP September provision, share the included was The for prior compared Net GAAP and period Nadir. period XXXX. of or XX, ended XXXX, This taxes higher expense was in and for was items, benefit attributable Adjusted GAAP $X.X increase three was to XX, three September $X.XX million XX, to stockholders loss plus XX, three is year increase This in quarter loss occupancy revenues prior XXXX. loss per million costs September million $X.XX for primarily September with in XX% the and adjustments locations ended gross to primarily basic the of the in and net for compared $XXX,XXX for interest, three profit profit the non-recurring XXXX. ended for $XXX,XXX to the year for prior months XXXX, Pro period is $XXX,XXX other to income or same for in approximately items, XX, for to XX, for and impairment period. months XXXX, $X.X in compensation. share

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

nine This savings it Our and $XX.X operating now for efficiencies identify areas ended net million XXXX. approximately the back in the September cash XXXX. to realize cost used to like turn comments XX, was create over concludes where in The operations continues operating can I and Nadir. call company months my to

Nadir Ali

Thanks, Wendy.

our demonstrate on business demand. create decisions. relevant to created need corporate advantage speed important derived We can Using data. fulfill that data logistics facility, said be and between create delivering Inpixon operations more and streamline I call, this data and to make By and and a to facts helpful customers for the location about the up tremendous actionable the continue key will our competitive last based specific the company solutions As our information enable visualizing relationships better analyzing processes. analytics location ability in provides innovative has and to and IPA predicted growth movement and data a are

effort an up the value. opportunity. ready challenging for grow finding and that, increase global businesses, on call we to been we questions. are customer new to domestic look to realizing focused are partners, we our to going is to century XXst closing of forward our in with opportunities. Now in support We objectives Greenfield this their and and strategy strategic on M&A Rocco, our has shareholders addition increasing execute Inpixon and the channel path the base, With our open thank know executing but shareholder

Operator

equity this Silver we you. Thank first International. questions [Operator address Sylva from And go minutes At have of ahead. allotted Ross XX time, today's question comes analysts. to from Instructions]. Please

Ross Silver

for the taking and time. me Nadir Wendy the the successful you question, on quarter and thank and time for the the Thank Excuse for you congrats spin-off.

first question a your I you that were that The on of correctly? in can with orders for increasing, associate mean revenues I is comments have I I was I heard I purchase did and and think sort that basis you -- increasing go-forward is hear this

Nadir Ali

to absolutely license based lead models, and Yes, different Ross. increased model a We based. two will POs thanks pricing Yes, increased offer SaaS revenue.

on POs received to both we will will certain and mix we orders licenses have subscription hardware in that is types a well own the as of there. So like software steady based may those so are we the there's quarters revenue that a what growing of absolutely a of and to in correlation quarter customers sell government our see especially but quarter-to-quarter spikes that in we revenue our particular the as

Ross Silver

Okay.

this orders? not correctly you're you one-time seeing So relates hearing to a as is that I'm if continued it bump growth purchase

Nadir Ali

Yes.

We grow that continue the we focused as are and forward expect to move especially business. now the building we XXX% IPA on revenue

Ross Silver

you another to relates And as as a little call, Got then okay. acquisitions are any talked constrained question relates way acquisition? it, the it bit on in you about it

Nadir Ali

are constraint as authorized the the I land and that opportunities grabbing share soon as proxy, IPA X to that's I think the Well certainly think there what shares in attractive in consolidation some opportunities possible to the think or I market there important is out the us. important. mean Proposal We why referred and as that's could we space. But be our

plus. those those is transactions having make happen shares available definitely to a So

Ross Silver

correctly. you So, okay, so hear

the seems and it some some opportunities on, might I share side. opportunities interested be of may sounds so more be Okay, like these guess on there it like

that's all helpful. very well Okay, that's -- right,

Nadir Ali

earn-outs, a the support long-term going cash our we use stock, component are offer forward, is these that and some to want definitely right. shareholders potential will We big but stock and will company

stock So to I of think it transactions. the makes types sense use these to do

Ross Silver

in because then That's that assuming that assume? your more just we haven't compliance the for conjunction Thank is was last just due I question capital raise helpful. administrative have good side NASDAQ you with to a that seen hear. the just was to that's And of Okay, to the on reverse fair you. maintain

Nadir Ali

Yes, take absolutely. We could our risk NASDAQ not issues. with a compliance

So we reverse. went the ahead and implemented

Ross Silver

progress. the the to questions and Well, have great. quarter to that's you, on Okay, congrats and continuing your following I thank look forward all

Nadir Ali

Ross. Thanks

Operator

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

Nadir Ali

right. in good Inpixon and All support updating you continued look progress. everyone. a to again you forward your Have for Thank on We interest our day.

Operator

included. not today’s Thank Thank attending presentation. you, sir. The conference for has you

have disconnect You a may wonderful day. now and

XTI Aerospace (XTIA) 5 Nov 182018 Q3 Earnings call transcript