Earnings call transcript Q1 2023

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Operator

Good afternoon, and welcome to Inpixon's Business Update Call. All participants will be in a listen-only mode. [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 telephone replay of the call will be available approximately one hour after the end of the call through May 22, 2023.

I would now like to turn the call over to Alexandra Schilt, Vice President of Crescendo Communications, LLC, the company's Investor Relations firm. ahead. go Please

Alexandra Schilt

today thank Chief discuss and its joining conference Wendy With today's first Chief the Good Officer; Officer. Executive corporate you developments to and us XXXX. XX, Inpixon's ended the for Nadir and call Ali, quarter company's company's afternoon, Loundermon, March for are Financial financial XXXX results

first XX, XXXX. March Inpixon financial Today, ending released results quarter for its XXXX

at please If you visit release, ir.inpixon.com. have Relations Investor earnings not the page received company's Inpixon's

markets, limited of statements foregoing. any our any securities of any COVID-XX in future proposed U.S. not about on statements any success call, any not statements the new includes regarding to attributed The belief anticipated is of or conference will of future regarding the partnerships, for other underlying those agreements, to, or management the be on for company's regarding relationships that products cash, regarding plans, statements and and economic or of statements. this but of During statement. any the course fact impact of transactions statements the conditions products forward-looking of acquisitions company company revenues, any company's statements earnings, any to or or any statements customers, making of the This historical strategies instruments, any international of including, the the regarding solutions, company's forward-looking relating a objectives or and statement statements valuation new a company's any operations, operations, concerning the the any or you future completed projection business, cautions assumptions statements planned that is financial of impact the strategic expectations any the performance, anticipated statements results, statement

the from and forward-looking as actual in materially assumptions of to results statements to risks differ conference statements. numerous are the and date based expectations on those that this uncertainties could call, These and of described subject are cause

Some of reports in and the Safe Securities of section public described periodic company these the with Commission. Harbor release the press the Exchange today's filed risks are in and

potential actual to or no these or does Investors these obligation reflect outcomes not events should investors all Inpixon so. forward-looking risks. and assumes statements future intend to of do to update read

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

I Please will go Nadir turn to CEO. call Inpixon's the Ali, over ahead. now

Nadir Ali

offer Inpixon Services achievement anticipated for respective as them and accordingly to during sale we joining our Workplace and benefit Enterprise March our good or our publicly-traded for our business I'll the strategic two Thanks, Alexandra, on that opportunity a allowed to thank growth. Real-Time customers. with solution upside XXXX developments. quarter its we a first this of believe retain first XX, significant along partners Apps was significant both further line also of to comprehensive while most We continuing discuss forward work quarter other refocus as for from to resources This Experience corporate to lines, Location XXXX CXApp, created 'XX. was or look in shareholders companies, and the that transaction our the Business business sets you and our call afternoon noting conference our everyone, and progress by resellers Inpixon start allowing accomplishment with and for RTLS

which been our forward, the the results is continuing Experience that of periods operations Business reflected when going financial have operations, for call, to this Workplace spin-off. the results, completion the from of from note In we and discuss please prior our excluded

still consolidated line P&L that ops the in business. a for You below see the number discontinued will

increase 'XX pleased for growth, for business help first objectives a our with for and reduced the first while the I'm to the to XX% to support of line that, This $X.X pursue will value our in balance prior revenue progress of strong enable our $XX continue expenses say same opportunities period At cash same With 'XX, in the with shareholders. we to we us operating equivalents. for year. our in quarter of the quarter to remaining of when make the million in over to strategic million also goal a maximizing cash reporting and time, meaningful maintaining compared growth sheet terms

achieve similar grow are And expenses to we process with shareholders, enterprise to the opportunities on we that due our flow that believe total also positive transaction involving a will the our pursuing value was CXApp revenue and and continues advance. beneficial what diligence increase negotiation to of RTS to faster, streamline we respect cash benefit for the regard, the company's line strategic focused transaction. achieved while potential with In

asset able can people of track on more technologies assets, we safety a highly movements operations. of physical committed position and things business. determine real-time primarily and throughout MarketsandMarkets. reach. systems supply and for visualize automation expected huge enables location solutions, a GPS This according location advanced of personnel map, chain actionable growth to in reach objects facility and the same XXXX, market areas to as large the of time, the is be location the into the frequency or used to live RTLS radio IoT, to key remain billion that continuously delivers to $XX.X facilities applications, This At RTLS and customers data management and to leverages is integrated to of by such not our digitally

technologies, movement market. enables of us including to we solve variety greater factors. assets in WiFi, location locate ultra-wideband, comprehensive Few of integrate customers can, the Chirp, cases the and GPS, utilization RFID which more allow than technologies provide track and and to of use real-time technologies our can like and line-up BLE, accuracy These their most with wide form competitors competitors LiDAR,

platform, of systems, Technology which and intelligence. valuable our Open customers technology communicates obtain productivity, intelligence, drive this complete stack and Agnostic decision-making operations. implementation data-driven other reduced streamline automation workflows By a facilities leveraging our their the and and data increase With about they to costs, learn actionable third-party and more with enable integrates can and

Independent our watchers third-party position. validate market leadership

acknowledged being second stated people the specific Location Industrial the is execute. location recently evaluation assets completeness Gartner Innovation no critical also the leader IoT of criteria named This Quadrant, earlier IoT in Quadrant example, ability vision our time a being leader this a Magic of report in The by and Award. in to World of Magic Inpixon longer space. year, and the Gartner compliance, based This For Indoor even Product optional, for analyze recipient capability address on more Services. the their And cost named but our and fifth location XXXX opportunities overall consecutive the for indoor new and as meet their Year required Infrastructure the use optimization. marks should of that based Gartner to safety, was and assess scenarios. multiple on and vendors operation us named year leaders significantly,

and believe committed solution business accelerated will cases supports full remain variety and improved enhanced stack innovation of operations, cost use multitude an that result providing a our and to RTLS a focus, been of in have and to streamlined path in structure we We to a industries, profitability.

I'll Wendy, financials. to you turn to that, our it With discuss

Wendy Loundermon

you, Thank Nadir.

both period basis flows consolidated in presented with for previously presented for all presented the operations Nadir continuing applicable consolidated discontinued both completion a consolidated to results additional as As periods the CXApp have in information. operations results prior from The are accordance of continuing Please operations. for Experience businesses Enterprise to segment operations the spin-off. discontinued of and on statements guidance, XX-Q such, income the of statements mentioned, for refer accounting the as Apps excluded cash and Workplace are been and the of

months Revenues million, the to ended Indoor sales XX%. $X.X Gross the for an for the XX%, in margin comparable million, the increase million, RTLS the period. $X.X of lines. to sales XX, from was three XX, XX, for to million year, XXXX year, comparable ended period prior Intelligence the $X.X the product March the March of profit were XXXX This months the $X.X This XX%. months three was primarily gross in prior component profit ended profit for to compared compared the during period gross due margin and Aware representing approximately increase for profit is XX% the a an three the or gross attributable ended XX, for in million the approximately three months increase mix in The March or increase $X.X compared is XXXX. to March increase XXXX of

million compensation, deferred $XX.X the fees, approximately were of profits, compared in provision was for loss XXXX XX, is of year. period the the $X.X March XXXX. ended months $XX.X three decrease three continuing XX, three months the March professional the legal for in from for the expenses attributable prior primarily operations Operating Net million to months and lower ended expense, $XX.X the million loss expenses This approximately ended $X.X This tax and million, of year. operating XXXX primarily to for was million. million and gross million $X.X lower approximately expense and to of period comparable XX, $XX.X offset higher prior March the $X.X by million, attributable in million approximately increase a $X.X comparable

before XXXX amortization, XX, a non-recurring taxes, a EBITDA EBITDA items, prior is for defined Non-GAAP as of net period. was income to or adjustments compared income and adjusted noncash plus stock-based provision of Non-GAAP $X.X the depreciation ended or year for items, interest, other loss income million March expense loss items, months for including and compensation. million $X.X loss for the adjusted three

three share adjustments, is and for Pro of prior common adjusted per compensation, equity for stock-based securities, net onetime share a per charges, gain losses $X.XX $X.XX costs. XX, per to share and loss diluted forma of defined basic the including and year transaction from unrealized for March and other compared period. loss items, months share amortization loss intangibles share of ended costs, as a Non-GAAP diluted per basic for the and non-cash was acquisition XXXX, net a net including and loss non-GAAP loss

we As in XX, XXXX, of had equivalents. March and cash $XX.X million and cash approximately cash

now call Nadir. the comments, over turn to my This and I would like back concludes to

Nadir Ali

discussion? us right. Wendy. please the could All Thanks, Q&A Alexandra, lead you through

Alexandra Schilt

our you in release, quarter, Yes, last interested now. call to address thanks, their suggested those questions conference advance. in We'd Like questions like announcement submit we parties Nadir. press for

where Some we those to were our best so did them of reconcile duplicated, possible.

we'll you call, free to the and If follow-up to any respond possible. questions Investor Relations sure as be as have quickly further with after please feel

the material business? question when nonbinding first LOI for can expect is, Our a update investors the RTLS on

Nadir Ali

Yes.

its to now, of business within bit company a is reference call little know, to event. you material the I on the this triggering did So, a just updates couple required of a but days report as

of will we or definitive provided can discuss, we soon but don't that do, we a line be now, as updates required. As have agreement a as time as

Alexandra Schilt

Nadir. Thank you,

question, next used outstanding increased what using shares for? the Our proceeds the by the has are ATM,

Nadir Ali

Yes.

that to fund resources As plans. want the we have our operations our execute towards company to on cash we strategic works profitability, successfully sufficient ensure and

a to economic During flexibly particularly prices achieve at raise ATM capital what's objectives. in us volatile allows the facility market our been market, order favorable to more

that's I So, say I for think would what that.

Alexandra Schilt

you. Thank

shareholders? do Our you value received the and NASDAQ how for restoring stock have intend price with on you regarding notice deflated, next question; compliance, from

Nadir Ali

So, of bid price we receipt have compliance publicly notice. the disclosed the

company We fruition, that, our we'll And opportunities was RTLS that, opportunity and value to our our to of I if example is we mid-April. of additional be good can actively as addition progress shareholders. continue pursuing another is to spin-off in think beneficial mentioned, we other the our a strategic believe that business growth apps provide recent believe anticipate also will the for in on shareholders. working business of brought enterprise line, on for that the

Alexandra Schilt

Nadir. you, Thank

have few marketing. related sales questions mostly to and a We

accelerate payment? we've So, upfront to were in it now size, working industries And contract together what dedicated is recurring targeting teams them are handle starts geographies are or to What share customers penetration? names? single you there it streams, with, revenue the have grouped and specific sales you here. the typical when future? current mainly you with any you can And and details any on big is and a Do

Nadir Ali

right, okay. All

me something, great sure and geographies to no I in and if Currently, let me Africa. America, top questions. let So, are North those Europe, order cover make particular I missed try our but Asia, South all know

increase direct and of stream integrators. as that and appropriate. steady a received world those we the partners, However, use all most We opportunities sales and around are distributors indirect both from force sales pursue such a

have you've but some we to $X often competitive We're size, specifics over others deal sales previous services our of don't of hardware and fortunate a thousand a there. order terms wide can due that recurring range one-time hundreds in and of signs contracts some to seen mix million, revenue, announcements be revenue reasons, so, our including with types dollars In revenue. disclose of of

We focusing are the recurring more building on more revenue more and and piece.

filing. page, to And there's info And this by absolutely our section expand XX-K share brand overview and our customers, not website information are as portion we have in name for with. and yes, our A global many and them corporate the customers, we're the very customers' on more company land of other liberty listed clients way, without to in large consent. continue and type numerous their recent customers, our notable on of at clients on are our we of

Alexandra Schilt

all. the close. them much, turn you for back I'll Thank very it section. covered you does think Q&A you Nadir. the conclude That to I

Nadir Ali

right. Thanks, for Alexandra, now. and and forward I our as thank shareholders you. you unfold. with Thank providing we're think as the we all call and to look more support Jenny, today, updates developments us good the appreciate joining All of always, you

Operator

This much. does call. conference very you today's Thank conclude

XTI Aerospace (XTIA) 15 May 232023 Q1 Earnings call transcript