VISL - Earnings call transcript Q1 2024 | Vislink Technologies, Inc.

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Operator

Good morning. Welcome to Vislink's First Quarter 2024 Earnings Conference Call. My name is Marliese, and I will be your operator for today's call.

Joining us today for today's presentation are the company's CEO, Mickey Miller; and CFO, Mike Bond, who will report results for the first quarter ended March 31, 2024. A copy of the press release is available on the company's website.

call, which like statements includes this the safe provide made begin call. statement, harbor cautions we I to would Vislink's during Before regarding forward-looking within call make which laws, of Private pursuant harbor include during Securities will safe made of the the of Management forward-looking federal statements are statements XXXX. provisions the to securities Litigation meaning the Act that the Reform this historical be in contained call facts forward-looking be statements not of that Any statements to should deemed statements. are without examination various company's of including, and limitation, expectations are the trends statements, upon financial current forward-looking All our assumptions. operating based and estimates These statements differ actual from and these that materially results or anticipated could implied by involve cause material risks those forward-looking to or events statements. uncertainties

you Accordingly, rely not should on these statements.

future risks business, or financial the the by turn the or as with Mickey associated ahead. And of information as Sir, a conference law, disclaims is Commission. filings This company's except update this list please any that whether the Securities intention or and company's over projections and the Exchange events, required call like forward-looking otherwise. of call Mr. please to any only statements, Vislink time-sensitive live would to May I contains XX, accurate now broadcast morning, links XXXX. of CEO, with because the uncertainties to obligation, see or the go For revise information, Miller. new

Carleton Miller

ended results XXXX, release us the for with our This March quarter, SEC provided our everyone, Thank we and business issued with accomplishments. along joining today. and that you, you, XX, for key press thank operator, financial first the XX-K morning, a filed

go-to-market discuss X-year updates strategies. target I'll performance our towards highlighting and updates our come recent discussing developments first to then markets, call our a our our on overview within I'll by financial results. As our I'll start back discuss product goals. the Afterwards, and Mike for to pass call, to progress brief today's financial quarter key

With that, made, enthusiasm our about let by Vislink. optimism, strides expressing our the me begin we've and for

This has operational from driven fueled the solidified X foundation, increase, $X.X that platform In XXXX The our increase current and we robust first geopolitical to reinforced with MilGov sales million. Vislink's the growth opportunities a directly market was year-over-year substantial presence. resulting BMS of adoption given investment by asset achieved increased to factors, primarily ago revenue These we opened XX% financial our have by leverage. demonstrating customers, reaching acquisition. quarter operating years further and by AeroLink governmental of QX, the strategic implemented initiatives combined landscape, the gains

Our continuous are Livelink. been and both results media our focus designed top as early newer financial higher-margin we strong met has on products these and ramp sales sectors. to products and bottom will strategically rollouts led product and up. Livelink the military, Vislink's government, Cliq serve and expect with Cliq interest, innovation line to that have sports recent With like enhance

needs are demonstrating in to customers in progress market. and our the preferences developing fit We continued LinkMatrix target of

hardware offerings XX% from our proven by growing in to revenue and first integrate are service in into of revenue XX% software our quarter, XXXX. promote represent LinkMatrix as and Our successful, efforts up total software the services demonstrated to

V AVDS are drive the Additionally, our of introduction platform Air-to-Anywhere growth. Dragonfly and further poised to

enhances management strategy total ecosystem revenue proposition not various X years use channels our this that anticipate newer but are part our products of only revenue device through approach traction, becoming This nearly total will intensifying We revenue. last the cases, year. the higher-margin XX% also LinkMatrix. showing over an are which increasing as by value across and sales of we introduced products unlocks evidenced our marketing initiatives, We our our

at valued entering weighted largest are as quarter. working are the we our sales about we our ahead, pandemic, with the million trajectory, $XX pipeline second optimistic Looking since

are as to solutions Control markets Command expand we involvement our or engaging and opportunities in such Additionally, new existing in Drone our leverage Drone to actively CX.

sales We recent are are invigorated by product the to our ramp and up continuing launches. our support efforts marketing built we've momentum and to

proceed, to of achieve our the XXXX. we flow cash cash track to end we on flow As by positive are aim and neutrality by be XXXX

We further efforts are for to our are crucial revenue and and we operational are continuously growth work These cost measures. operations, proactively enhancements profitability. drive we evolving and enhance identifying areas saving as ongoing

CFO, the Bond, our pass of provide our to Before detailed results quarter. call over I financial for go overview Mike? a Mike further, first I'll to the

Michael Bond

good and Mickey, morning, you, everyone. Thank

first the results for Looking our at quarter. financial

period. product to is Total expand million sales up jump reach, prior our the revenue gross a in and to support and period. push in was markets. XX% The XXXX. Our to to million, margin $X.X year year a million from total increased quarter This software on margin we revenue $X.X revenue. and driven mix million increased in marketing improvement period government $X.X $X.X reflects and in a the $XX.X the were and in to year-over-year sales compared and efficiency Gross lines. for by our our up increase million, from million expenses QX from focus operating military million services period. XX%, greater increase in to profit of the primarily up new the $X.X change The profit prior Gross sequential from $X.X due was in as increased prior year in higher prior year

to $X.XX cost prior enhance our $X.XX shareholders ongoing improvement loss per underscores to of a demonstrating million year our million, measures. our $X.X share of a $X.X revenue the improved This $X.X attributable and more period. direct focus strategic or strategic effectiveness increased product from of loss efficiency. to the profitability categories. period. per in common year down to $X million efforts a now loss our from result higher improvement on the Net prior of loss margins, improved in our Turning Operating profitable and management or share operational million This to is

balance our to now sheet. Moving

improvements our maintain a a clear the us, compared for and at in quarter $XX.X first March have million cash and million investments working December robust cash compared in we shown short-term XX, $XX.X $XX.X priority XXXX, performance Improving to at the top stood XXXX. to As XX, December of million capital of million $XX.X end XX, cash QX. XXXX. of at usage at We remains

expect our continued the capital quarters. working We see improvements to coming in turns in

public markets. product supports partnerships, two aim These key sheet balance and flexibility, past sales restructure integrate have acquisitions to the and actively strong improvement making over years to redesign rejuvenate sectors. defense begun to MilGov within profitability moves our expand our significant safety and pursue market efforts our acquisitions our Our our summary, In X results. our in our enabling us bear operational channels especially and the in the capabilities strategic fruit, cost to base, line, reach a

I'll we positive As prepared our growth concludes progress remarks. further XXXX, solidify This into these are turn back expected trajectory. to my initiatives Mickey. it now to

Carleton Miller

Thanks, Mike. the BMS show updates. markets, AeroLink the largely to impressive of platform operational driven the successful to Returning assets. momentum further solutions. In sales our we integration This growth, our by propelled by MilGov of is continue growth

new field is our partners, successfully Air-To-Anywear long-term These This decisions to LiveLink customers. revenue quarter, on for streams three efficiently. platform, police OEM to help Notably, the developing our achieved European offering more included in department status build we with predictable our relationships future. bring a revenue deploying helping video prominent with and addition OEMs drive allocate resources LiveLink to introduction, AeroLink MilGov from more supplier are the live approved more and driving to with new proactive focus

reflects a continue. the solid our we've prior markets, maintained the like consistent we Olympics performance production With on demand In to continued the horizon, live for the with revenue This contributions trend period. products. this stability events with expect the year

significant experiences. series, XX,XXX which events potential the future VR Race AXRL like and Our in the attracted and fans, enhancements AR industry involvement underscores broader applications for in

not This strategic our capabilities about It's focus new our technology in is and anticipates the will existing software sales Turning coming increasing products anticipate incorporating this XXXX. our contribute sales the key growth augment platform The AVDS ensuring our updates. This that demand. about our analytics of will to years We accelerate functionality Air-to-Anywhere and all almost digital product platform. service of advanced significantly that of sales our by just our quality in solutions, solutions. driver market enriching volumes. A is that

of introduction product XXXX NAB at V Dragonfly a The represents lineup. in our key advancement strategic

specifically video miniature UAVs transmission transmitter, ever it's compact where smallest V mobility for devices, Dragonfly high-quality, from package. in designed dynamic and delivering POV size Vislink's video live a excels As real-time and body-worn in environments are critical. capture cameras,

the Moving forward, our broader surveillance with detection is crowd trafficking, analysis surveillance. our our broadcast media response, video this experiences such sports such enhancing emergency and enhance and technology strategic processing. as advancement or activities This line aims border improve through solutions and control, to In into expansion, AI to harness are integrate more. as applications of drug and to we strategy and

we XXXX, cloud in of accessibility services, for footage and our Additionally, secured ensuring storage protection. data and AVDS distribution

protection We continue our data. customers' the prioritize to of

technologies services. quality We're of to also their enhance our common base simplifying boosting eSIM and developments in systems, provisioning management and our efficiency These including capabilities, and architecture integrated management our component and operations. scalability leverage improving costs, circuit the remote while our effectiveness system reducing

product have and we connectivity, our areas: introductions, increased driving strategies, to traction trial communications. transport, AVDS, market potential video and go-to-market video with see our across our data considerable for gained QX, continue usage. new control live drone focus efforts four As growth interest and In

our to key into traction where vehicles data connectivity We transport, We in are and and essential. trials heavily technology venues in role plays from are bonded and a gained various this a focused firm interest in growing cameras convert cellular market live orders. on connected demonstrations revenue video QX

technology advancing future align discussions market. meet that the requirements needs are of our to participants ensuring road and their with evolving map, OEM with key innovations understand our Vislink's We

As Drone traction are I we CX. mentioned, seeing in

fast expect While be this emerging ahead. the market, we it to an in is years growing

expanding meaningful the the leaders, has partners the having are strong of technology from our feedback overwhelmingly conversations OEM suite. reach market confirming and industry our been positive, with and demand and key the We

our is launches in of support of the significant our advancements move growth extending targeted functionality This role align the to software in our influence and product on forward we and XXXX, our aims recent our will transition As and AVDS tuned accelerate to increase MilGov We the strategy Air-to-Anywhere our finally This remain reach visual and in line. solutions, to quality service-based of markets. platform across the revenue and with streams. improve focused sales volumes markets. goal our

as aim largest XXXX. XXXX by for continuous the work are positive the of Our end key strategic flow post-pandemic efficiency. operational sales a experienced, and elements are efforts to by we in backlog and neutrality flow we've These pipeline, in strong cash bolstered cash achieve improvements

by are positive energized to maintaining start momentum. the dedicated to we are ahead, and Looking the year this

are initiatives and meeting to strategic Our ongoing targets beyond. for drive us ambitious poised this toward QX solid year foundation from and the our

we clear driving consistently base. our the As value and instructions. we market our business confident our on expansion, we innovation With excellence to progress, appropriate opportunities capitalize Operator, continue for the are on focus are refining cost positioned a we well and and please will continue to and stakeholders. operational reduce ahead are provide model

Operator

At Kinstlinger this from from Instructions] Partners. Alliance our Global we Brian question time, [Operator will take first

Brian Kinstlinger

Nice results. I have lots of questions.

question. The first, financial-related a

the set, gross over look As and range next what pipeline of at and depending to of come on customer Or, of I sustainable? you year, is the think X.X do gross investors backlog, the the years? makeup expect the you mix should guess, is margin margin your products

Carleton Miller

numbers. over it pipeline, But is on we live events. at hit turn key I'll tailwinds for then demand to I things. that the One, think X look Mike our the when One see. and insatiable there's for we that

U.S. were XXX in shows the entertainment top events. live sporting think I or

MilGov need the is landscape the given -- area in, piece then for we But safety security. strong. that's geopolitical that the political and an live landscape, So all

there. a So we see large driver

typically higher see is that bit area us. margin So opportunities in as for we that area little more a

you Mike, maybe that? to can some So give color

Michael Bond

mix Yes. And a Brian, we're of Mickey we had newer forward, move as our as of seeing kind mentioned. higher products,

products, we pretty we're exit increases older of margin. seeing in as some our some And drastic of the kind so

things margin. older the in whereas XXs/low some old our days, high had XXs of So

seeing upper low XXs. we're more to Now in XXs the

continue more new we put can to the we're high as XXs going to into start So products the of seeing mix, XXs/low margin.

Brian Kinstlinger

can had last talked you size older upgrade opportunity then the super the that for That's quarter customer just you you customer And helpful. for base? Which think set? the cycle DMS about some technology. about I talk Can Great.

Carleton Miller

that position challenges that Yes. a we given going to they weren't at When those through, look customer the base, BMS that customers help upgrade. in were

transition working are are they BMS a so of support So these have their line customers what of is and cycle. designed higher with XX- we've now newer therefore, in the a technology we video better quality. on then needs to period. newer Many them them work then higher transition done to XX-month with And, make the a their be a work needs product, throughputs, lot migrate sure with the life to platforms, product able into period, to maintain will the product along compression, and which to to their with they're on customers

that the -- opportunity mentioned upgrades $XX that time. be customer for every in it's those base, of one pre-COVID which the context will of So basically in within million point needing us, range single customers at some we've

Brian Kinstlinger

question Are Great. the the market products. -- about Dragonfly the Maybe Obviously, target take they model new Are do And three there? And then release customers? us these the Can brand-new price? highlighted for initial -- three-part through either in you your a pieces? they -- average quantify announced how Or you've recently. press selling a I are know you think customers? existing a it's in we addressable recurring customer? for lastly

Carleton Miller

Yes.

in for Dragonfly new have in X V. are customers that the Those new existing So Those we've both and terms and and LiveLink all that customers. of last would introductions had been include the Cliq, months. products,

So is public customers solution, a from through to basically customer proprietary solutions, a base, all or connected XG options does existing or private an gives either what that have that LinkMatrix. COFDM the our

those sales. we Trojan are to way a products, drive basically the So look they and at services software recurring horse

of exists opens new a and with but us. it current up So customers, for opportunities lot that -- markets one number our

bringing the In fact, around to opportunity LiveLink, video on our belt-attached large that LiveLinks on a we was the live group police for first from Europe. delivered cloud in

of type market sleek, that And with the so and allows high-density be mobile. very see we'll to same a size Cliq package up us very LiveLink with it opens thing. Similarly type of it for now that slim,

overall So service customers supports also to UIs. plan only more it existing our not drive our broaden software the through but opportunity for sales

Brian Kinstlinger

products? Is either value, there think about relatively these How average contract they small? do for selling think about relatively Are way I or that? a to total of they price, Are large? some

Carleton Miller

Yes.

or as the one best it, a size will to our include think multiple about order products for of use need case. typically, way I different they types their think demands those

they trying deploy upon LiveLink, sets. achieve. It's have uniformity they case the operations. safety, they're may a have a may or live what to case then in have And public So Cliqs, and they're of and workflows use you'll current DragonFly typically, broadcast, their is the what because they integrating in several a see around dependent some what may they and to into want basically highly

So standardize we'll size. certain to a package around try

Brian Kinstlinger

what that about Is And are. in investment Maybe then increased you investments those people? talked that Is and Okay. marketing. break down sales advertising?

Carleton Miller

We've people. capability. is additional #X The Yes. had sales

has instance kicking overall but be sales that sales Vislink. are the that force instance we'll We effort, integrated an people. And BMS we've will of overall slow, off force go into had at which largely SEO incremental, and the it's

well. So that as increased

Brian Kinstlinger

you I've I those mentioned Great. approved able OEMs I you right, is three if identify heard supplier, you to OEMs, got think, are a who you Last as question are?

Carleton Miller

there very to particular market radios, the globally. we allow technologies way. an And see need and radio, around it's beam Drone got a Command we've forming, that's two for for -- But and see And manned that that It's bonding the us. in -- resilient us can't. channel I and the address them it efficient have say tremendous that one taking is and of can emerging that We are We bonding, huge we us think Control. others is aircraft I a potential unmanned. really potential area that and software-defined

So that but in in about a we're early that. us revenues market. have huge still really really We think be in that market do currently It's could today, the excited we for future. that upside

Operator

our back concludes some session. to go turn call remarks. this the to for And ahead. like question-and-answer I'd over Please Mickey closing

Carleton Miller

everyone. today, us joining for you Thank

stride the significant journey. work strong team from of our This testament our forward quarter A investors. marks support the in a and our hard to

our continues to drive delivery direction. in to revolutionize through video technology innovative advanced Our mission markets strategic MilGov capture and

reflect strategic Thank that solid by we on With As the we for lie ahead. financial can are and energized momentum a to reach maintain and we are direction, continued this a you successful we opportunities a your new that confident support. clear the start foundation and year, trust heights. Operator?

Operator

Thank you today us Quarter very XXXX much joining Vislink's for for First Call. Conference

disconnect, now may You great have a day. and

Vislink (VISL) 15 May 242024 Q1 Earnings call transcript