SKYX - Earnings call transcript Q2 2024

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Operator

Good day and welcome to SKYX Platforms Corp.

Second Quarter 2024 Investor Update Call. Today's webinar is being recorded.

Before we begin the formal presentation, I'd like to remind everyone that statements made on the call and webcast, including those regarding future financial results and industry prospects, are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the company's SEC filings for a list of associated risks, and we also refer you to the company's website for more supporting industry information. At this time, I would like to turn the webinar over to Rani Kohen, Executive Chairman of SKYX Platforms Corp. ahead. go please Sir,

Ran Kohen

afternoon and Welcome corporate Good quarter our earnings call update. to you. to everyone. second Thank

We will have the call. Steve Schmidt, our President, start with

So Schmidt. microphone the you. I'll to hand Thank Steve

Steven Schmidt

feel here my a of with that our very that Board, been take you've very, that our being obviously great start one chart It's our but management our continue to Rani. And let's attractive team, the you, with Thank investors. of advisers is you individuals we this seen, pride afternoon. off and We pleasure proud and to in have Sky.

believe additional and as of the second all overall the in believe add products to continue and company, we to organization. and and skill business these think people We believe they none the in relative in vision talent the they our future the have And warrants, they this joined capabilities. of to because Sky

and for we that important any it's critical organization. have So it,

it's because remind Next, everyone me think let our again mission we critical. of

many one have areas at industries there successful in our been products, Our the new just to homes mission and as X our save apply significantly products And simplified. we all costs, X and we're why and And of things: enthusiastic. so are But areas. these we these and and that do smart Sky, advanced save is of time buildings save and standard. advance lives, safe they're to we it's make

and make China, have issued pending and to XX globally, significant our applications progress now and U.S. a in India continue We patents We on including the Europe. patents our XX -- on product company patents. with

in global buildings and almost offices include a massive, and huge market. streams country monitoring over TAM homes think our every subscription have of that room And TAM Our every sale we and and location and being the licensing, revenue possibility you hotels the sales, of market $XXX expected billion, product making about royalties is spanning and rights. in addressable

ceiling our As first, have plug-and-play smart next, finally, and fans; products. lighting of really platform all-in-one lighting X we and know, generations sealing smart our technologies: plug-and-play home fans; you and our plug-and-play ceiling

of opportunities future in penetration growth programs. significant market and licensing All represent really terms these significant of

to Let's highlights. really financial on business move the and now

XXXX. million X on of estate smart home CEO, and of as restricted are XXXX, a products. sales of based quite world platform smart and their and the factors: through second, in are the million are our of even record stated somewhat revolutionize million the Canada as and mode. We sealing, for lighting is And COVID, equivalents revenues to cash first them year March smart and opening and cash, including renovating the We smart market; beginning industries, can the the we going XX for we fan, we million XX, the record in the and home XX, compared in crisis June compared many as $XX.X XXXX, this million is at recently by market in generated million continue we ceiling $XX.X our new and as U.S. plug-and-play first, improvement $XX.X slowdown were believe our And $XX on were AI, our decor back, a penetration suffering others. Wayfair of grow home, $XX.X home to home main In that home advanced in reported substantial of advanced among maintaining we of fact home strongly homes. area of significant cash second products. whole and the where revenue websites, market of quarter increasing real home advanced products. The to decor, sales XXXX $XX as second -- plug-and-play We people that for quarter reported the now of as lighting, declines

common is sales and referred payable to rapidly, into are Capital to converted enhance as cash when operations, often ours, the lower its company to its finance of cash such companies Model, its to its with position As trade the cost as leverages though Dell Working capital.

and we business and are XX,XXX market to are continue grow advanced thousands homes our tens Additional our expected financial of homes and of products in in products as nearly XXXX. and be penetration smart plug-and-play in to highlights, U.S. of our Canadian

for platform and our segments. e-commerce enhance decor websites home We educate penetration and of over continue market to to and professional to lighting utilize retail our XX both

builder become to expected cash product are We distribution to coming significantly will gross our enhance positive flow the sales the increase markets the in our months. during company to collaborations that our believe and channels. significantly market expect margin, XXXX our We to penetration continue through

now shift our me of some to Let collaborations. gears key

products announced And parallel some We Depot, are go stores. some Home to with products Home to into have we've just done recently our Depot's website, Home Depot. expected what into going of many

fans for are with we that have smart will stores, many stores, any products and revenue potentially products can goes potentially over that the to us. into only X,XXX that perform to increase Depot's emphasize to technology, include good smart it's expected the are in into to stores significantly those lighting well an our website, a go As smart their that chance ceiling Home plug-and-play product important Home from including bringing go products, substantial that opportunity generate those revenues Depot on

game-changing standard smart the and ceiling industries, lighting, Licensing make partnership related home, GE licensing by technologies platform receptacle, with to tech, including GE's smart electrical. progress is its signed U.S. advanced make ceiling markets. recently to and and collaboration AI, and home SKYX's with including to for related X-year continues licensing outlet and for initiatives the global SKYX agreement to it various products, fans and buildings and our SKYX's Next, goal homes

to in Next, markets. And several financial, then Ruee backing with collaborations have Appliances, Chinese got manufacturing distribution substantial areas, European manufacturer, mass supplier the announced collaboration for our collaboration global provides Chinese lighting the we and a as we've over including production world U.S. Lighting. world-leading SKYX being with prior, and will U.S. capabilities collaborations and industry, these This all markets. lighting years collaborations leading for including online, retail. and Quoizel, U.S., standard the And channels company, of Golden professional the XXX with in with SKYX's leading company, lighting lighting be advanced and products with company, Kichler, the collaboration smart lighting

and light. As new market. we're of I recessed a global plug-and-play mentioned patents, China, include comes global SKYX's advanced market started recessed is We Kong The smart, Canada, prior, global multibillion to patents light our U.S., significant production when it unit making recessed plug-and-play our light new progress. Mexico. patented Hong

recessed controlled globally with wires, saves Home and advanced and cost lives. phone an electrical SKYX's are Samsung. voice control, plug-and-play recessed installed Apple's hazardous Global Amazon solution light SKYX's and simple recessed of lights plug-and-play works As with app, be through light billions can Alexa, enables that installation SKYX's Siri,

smart financials. U.S. for U.S. company's bringing covering are in India. the property X recent over It additional and in and patents, sensors, internationally issued global the and patents, safety smart Canada issuance electrical to China, smart also patents, recessed and existing in in new and to addition Mexico platform enhanced the XX New take of the technologies AI-related Europe, the performance patents industries advanced let fan of plug-and-play intellectual advanced Mexico global pending SKYX internationally, and the portfolio patents Len? you who and turn patent issued and home includes Sokolow, in patents XX AI a smart additional and India, SKYX's for that, of including of ceiling plug-and-play and over lighting to smart X through smart me plug, the including will Len home home advanced home heater. With now sensors co-CEO, and AI, home, new which light, enable China, meeting our Europe, and total

Leonard Sokolow

Steve, much. you, very Thank Yes.

that's they just to And to Capital Model. We sales able time were cash as or leverage to to [indiscernible] many our the often within span. and Just as of cash have direct rapid with referred Steve to of over million could sales as $XX.X to initially, to as XXXX common able Working payables cost our sales our And standard stated, favorable enhance trade $XX.X the rapidly, such the reported payables June quarter quarter receivables second capital. that were be well XX, the as revolutionized our our their million elaborate, X XX, are of cash as XXXX. as to and the smart equivalents, to revenue in restricted reiterate plug-and-play $XX million, when XXXX, products companies as compared record to that the Dell customers, ours, cash compared Dell vendor is days March position X of really e-commerce into XXXX. sales converted $XX.X of second XXx as know, including to and to increased they collect as in a in million We cash, lower computer

XX So enhances it generated from cash conversion could working to be and the significantly days. that XX cycle the And capital. liquidity

to it's -- in EBITDA interest, a net depreciation in that and before great we Just million press had measure some reduction had relationship an also, release Ruee loss our dots amortization million quarter of as as to XXXX. second the and a call went $X.X $X.X we that in the payments, non-GAAP first to the our that and the also conversion connect quarter cash adjusted enhances in taxes, cycle. We $X.X that million compared share-based EBITDA, adjusted reduction are cash for

in X% QX keep mind key view, very filings. revenues XX% in addition expenses good increased in decreased XX% quarter it our to XX% million, million. to net a million, to $XX.X loss, just in second of loss to a our the Our non-cash million distill are $X.X of margin our the to a -- gross XXXX, amounted to non-GAAP compared $X.X $X.X direction, addition increased the metrics million, XX.X%; of compare expenses reflected in our quarterly amounted results basis amounted of decreased operating following: $XX.X $X.X loss XX% $X.X million. a gross it's to in $X.X XXXX. And million; a XXXX to our net as increased This to some When to non-cash adjusted loss it's just cash million; a of of the to of loss basis to to cash our perspective, net this down million $X.X loss EBITDA of that our and, QX measure to and $XX.X we second operating profit in million quarter

adjusted cash So our XX% operations then $X.X our million $X used million. to decreased decreased XX% in to as loss and EBITDA

wanted and trends we favorable numbers So were reflected course, quarter-to-quarter, in these our something so filings. extremely our that to emphasize our that metrics of are,

turn could to Rani. over if So Rani, it I please.

Ran Kohen

This this be and recessed light announced smart plug the Those we hazardous plug market on thank our becomes it on of you the call as in press here take -- utilizing taking door release We're our said and still light, the this this good earlier, that product other a provides thousands XX,XXX time people unit things as very are a for again, one see smart enhancing through call builders large All We're including smart potential play. spend go someone patent a hopefully. or multibillion great production. minutes, expected light rhythm it's to a and lights high okay? us about tens next controlled to some that also recessed the ladder, wires hope month. go or new fronts by we Apple's we XX them, of going and you, points able the Thank a coming talk or and here. it within Home, said, but on working more as and and It very Google people announce them covered, light product one some to the this, we'll is Alexa, talking iPhone variety ways. penetration, of in be a a be couple nearly year we're the -- Great to of started month within to products, the ceiling ladder, play, this This our small homedepot.com. that touching for you, now we're smart. We still all-in-one homes can fixture, patents, in is we people on small, Steve, slide quarter install in room razor Siri, and Samsung fixtures, hats, here, fans and many as to and can several product. And new blade there's is, on XX model. homes are months. We're it here smart other less a talk are use provides projects announced we capability of and Lenny. of and to that This and chandelier, your part market. with what platform and or excitement us recessed excited we A of recessed just use if opens

Depot. also fan the with compatible and the chandeliers, products not of good we'll X-inch kid we'll product showing but rooms, expect have in with [ taste great all can are chandeliers the for ] that Home you see, of the that for and see definitely to smart round globally. We're only X-inch, As holiday products a some capable, smart lighting provides lights down a light go we'll square products those for also it addition this potential the and can X-inch going the markets of smart here that has and you have X-inch and and provides here fans market lighting U.S. size are to we to also size, huge recessed road that have

have fans, fans. smart ceiling will ceiling We

products a of sell X them, what sell [ remind pack to call is us. over also CES pack, products to go addressable significant everyone, the big U.S. products The to we'll be other and signs, an and the Steve with well awards, market such also product goes ] to and for websites, product All have we and lights, commercial market in X a only. Obviously, to razor will and Depot company, go to with stores. parallel of as we that and big Home expect X,XXX of -- have as Home mentioned, ceiling now one variety Depot be the the website, have as Depot, heater some also to And but pack, can smart we got pack and packages this. on on wall even with exit revenues website. And patented going are we apartments, and really this, we that chance products the do. as substantial can the with homes stores stores announced continue applications, going billion only a the good all-in-one products mentioned, market X also residential have be Steve ceiling launching will that to XX We and to We'll fans. online, into in and after Depot. Home X quite perform our that's XX home a we we of but The expected Home X.X launch to our play emergency not sconces, outlet,

to year, here dollars mentioned, X hotels, Steve license mentioned, every to quite Our doing and of hope won we'll on better, whole to have standard mentioned performance many as all-in-one CES capabilities going we product enhance licensing the performance homes AI and of within so span, have. We well we Wi-Fi, rather large here. And to fast, we but smart product. our also initiatives and things, and earlier, to hour with and smart great buildings the as capabilities, industries cetera. of in can progress And in Other of seal platform or patents, homes. as or said, performance it code the GE as as et said, put and the as so software, happen many we as sound, or days do smoke voice the can this chips minutes Steve we're ], that can we're weeks on capabilities getting within instantly our utilize excitement license close of awards Licensing. here, buildings, transform license than can technologies real companies can provide we including sooner we an a we a only rather really in plug we're do including achievements lot to to and you start smart millions can our estate and spending homes, smart [ and packages one we we GE and enhancing the as spending various believe And other there's around year we production and addressed detectors, it, detectors also electronic not things this can play, home. license hope many and And and than it some

already we filed, it's mandatory long a We're XX long a time, process. Eric in that's after to Jacobson that again, the you year become Earley process. that always over this members have team application, to know, code lead are everything confident as the said, years I As last and have Mark our needed to application very as we mandatory

in machine, the and to name, you generic get So as Manufacturing about by progress voted our buildings with comes. In more this as Electrical past safety. here, and as things Code see still Institute that's making condition. It's and hope got We ANSI, we homes create approved, we're we news. the standards this in actually XX we Electrical it the and years Standardization that to slow did a XX can got share you good when the National but that's into comes segments approval National meantime, major the WSDR NEMA, time the historical American

So is leading beginning world And including GE as really we're on collaborations Steve with co-team is that the products said, the a earlier, starting we really that like beginning feel this major you. to to that of, other our ceiling and really and in like optimistic, think we new we of Home happen variety we share Depot companies. with lighting leaders, with as said open and

part some first we Q&A being will we're now working I start So if if we But think additional and and on will conclude this we share here. call we that there that addressing can of they is things the Q&A prevail, definitely. said, with hope to that be able

guide and Q&A. us it the So to up I'll the with turn please host,

Operator

with from Legg question Michael Instructions] Our Benchmark first Company. [Operator the comes

Michael Legg

Congrats phase, Wanted Ruee on Just on into very Can a the quarter, on ties relationship all touch the Home little you big. you those Appliances Depot of gives we that Depot, very please. that with up to fast power? production the bit that the expand kind Home could and how record X, capacity the to financial be and as everyone. comment ramp obviously enter just on

Ran Kohen

some it the Those smart Appliances a us the for of collaborations some and the collaborations, works other those also have us products. Michael, relationships, Schmidt great large relationships plug-and-play after Michael, to sell from enables question. Steve Dell help our including this variety products provide And of -- and Co-CEO is that advanced Lenny pay and and have we we us we in varieties product those as mentioned, products Sokolow, way Model. Ruee the

So and gross in and and type helping type distribution opening the recessed variety as to down us collaborations lights margins, us as well backing those channels advanced smart with road, -- in ceiling smart financial open and of certain help in of of and the heater. products and fans

us manufacturer an Ruee and here, major having relationships U.S. very well. and Europe large world-leading Appliances, the largest, extremely approved big in known. So companies it's world, China the biggest in He's those in are He's factor. I the strategic company improvement vendor in think, the home all a very and and lighting as collaborating the with here and quite

relationship long-term and can So strategic improve we those are believe our and we margins capitalize and range, channels. both distribution significantly extremely that

Michael Legg

get and big tried to other other with whole any amongst obviously, kind reputation come that made question. of you? touch And just on the that's Great. in is retailers? board announcement, because Home you news. And Depot retailers one then Have how Since more expanded the of

Ran Kohen

of we we we're discussing. potentially I can't and a there's that that discussions different share of think that I discuss yet, think we them in can with are some type that retailers but

of this I and very Home beginning Depot able of us, a sooner is we're there's and we'll to other think, for definitely some than and and factor in company decor a improvement, new home we I looking us, them it other that be leading be announce think but that targets home in relationship major really can around into, hope proud later. sectors for

Michael Legg

quarter. Great. the Congratulations on

Operator

with McCann Capital. Our comes from Pat next Noble question

Patrick McCann

builder to first Just channel, on couple since regarding builder the as and I have the got any a My tangible with question that wondering recent developments with as the had Depot, any there's congratulations do then channel more Home nice result. or if as a talk to to acceleration builders far coming happened announcement in you quarter. specifically was the

Ran Kohen

the active that there's and hope We are that a in very channel, to we'll share. lot we be builder able

with on address now back the the smart flush of and revenues and to we Currently, builder Going what including that mainly developments key and manufacturers, those we production, hope for quite definitely recessed definitely our plug-and-play product down-the-road our to the we're chandeliers, go on products. lights, end. And variety announced as our, product those exit call on we're previous part to we started be Ruee, more question, signs our to go and we ceiling regarding some we certain the collaborating to and door builders. with sconces, but and channel started -- lights mounts, lines opening relationship this we the that's is of here, active down able fans, are emergency to plug-and-play chandeliers share pendants, vendors, wall working get --

Patrick McCann

you updates positive you a if without to reduced to question you in you this burn mentioned in there? cash XXXX to get any cash remarks and cash that you additional cash burn. have -- additional Do positive I the just perspective, need do past quarter. funding? are you flow I funding positive needs flow need funding from there Great. need And was flow was Or tools would a other be? believe would wondering cash the anticipate then turn relating the be in XXXX prepared targeting your my still the

Ran Kohen

our call all that with as and just it Michael CEO, the have we -- selling us position. cash. we're on really we probably Schmidt to our We're I well, Dell as lucky $XX.X Sokolow, So million cash mentioned, the can Steve because Lenny this announced, helps think in websites XX model, in

collaborations us vendors, we that have dollars. So spend help big with that we the to don't helps need also in those us

that Michael the our feel we get the into of to really gross collaborations. and confident and of model, we we So to we those start margins XXXX those what as have our country. calls that because a positive, management cash rolling bring cash path strongly that we call bring positive can terms us products here, feel And we in Dell growing can more because

Patrick McCann

Great. And again, congratulations on the quarter.

Operator

next Maxim Jack comes Vander question with Our Group. from

Jack Vander Aarde

Okay, operating great. the I and to uptick guys. expenses in in question the material appreciate update XQ decrease sure. see A revenue for Great big maybe for Rani.

I your you just timing briefly provide mentioned think But the can on heard and I significance it update X platform during an of prepared Gen you launch upcoming remarks. overall all-in-one maybe product? the

Ran Kohen

Yes.

of second regulations well is and is expectation half such you working production communication. performing. have just towards quarter. good shape towards We're you smoke this the to and FCC Q start end the UL, platform Our the as, in and have We're for probably as next or fine-tuning in detecting

control also for to important and So conduct us, that our manual. Sigma what's very quality and to is us complete Six fine-tuning requires

first product this here. of a really, all is great it our fine-tuning decided on tests platforms. to product. smart, we're And it don't have smart is conducted happy our we for demand additional with products, sure launching because it's that what in could responsibly. launched plug-and-play we did final as testing The we doing all-in-one to Generation but with market, X, we're earlier, working And that also, we and the what launch, just And conduct have we exactly We that There's very generation we're surprises. smart make product. our the great we we call

we to feel comfortable production. mass So the enough start

after chance think So quality all good months, of control next and start the testing. manuals the have production we that's we couple where it a complete stands. in regulation we And the to

Jack Vander Aarde

later year? And Ruee to additional with half in great. the sort with see of maybe Appliances Ruee, gross and back on an for this provide maybe -- color production uplift the we'll year a just of because maybe you collaboration the follow-up progress then of if margins Okay, Can time by and regard update maybe next or in next Lenny. some line

Leonard Sokolow

Sure.

Michael we've So really, bring -- able financial in products, that our and discussed, and collaboration ability as manufacturer model, with partner I the -- are of multidimensional Europe, for only of not they with their U.S., global -- table, global to but think what we're flexibility to to respect our cash partnership, to China, there's the and understand lighting, knowledge also conversion lighting sales with we large they have that make and it. -- the the big cycle. for But to it's cycle the they channels Dell that's they flexibility terms they base big the They favorable a service leverage it's have, that similar stores box boys. have the course,

of So expand [ a good and to foil market ] terms there very for it's really the us able another with that them. Was in being growing nuance to question, Jack?

Jack Vander Aarde

it are latest next be follow sounds actively how up thoughts I are speak I was to they they Can the get to arrangement? active your that GE you what's And relationship. encouraging. on will your latest with you just a question relates as No, I on model? your business will covered year -- And active though to with that. just the think that GE by thoughts, today? it. looking much pretty how the And Maybe

Ran Kohen

very with press lot release a on preparation seeing As in a far great We as in the to calls to active, we're weekly a us scenes on world and behind and new going ceiling. as opportunity, what GE the the open active stated GE. conduct there's

than smart just is every a perform GE mentioned ceiling, in some we deja We're creating to will in top light home this a very in as really our as performance and building this because smart Steve know, one expect to created ceiling. enhances then on products started the with significantly bulb better, earlier global world that going center GE license world. And a the location would be home, vu, it's Edison [ receptacle, with say we to XX% of As of all every able created that tech standards the ] every the to that in the we the more of of Edison base also you fixtures, our the responsible model. have famous most

to as careful we that definitely, the in field using collaborations in our road some that main share So And arrange what with hope start But hopefully with for we discussions. We and towards main great a and be about factor. industries. and that and will believe hope big near months, all will in we a here we'll we GE's experience do be and factor will hope initiatives, a down some plan some the we're future. starting serious having that, you such to very move that, discussions be forward able the part licensing of coming several to next things, we're

Jack Vander Aarde

appreciate strong momentum and it. on I continued it. guys. Got the results Congrats

Operator

We Cohen question-and-answer have would over turn end our floor to to session. the Rani like the back remarks. for I reached now of closing

Ran Kohen

our with next looking forward hear earning Well, Steve thank you, the the Thank prior here. more call. net you, Sokolow, hopefully, us great our team mark for hopefully, And Lenny call. have for for and share call. to some Schmidt. members thank audience, you, everyone, you on Thank we earnings update thankful we'll here, you'll you, to the financial believe that things And to

once So announce obviously. And we're will, we're happen, to able things. if we working they them, interesting on some

much. very you thank So

to forward of all soon. Looking you talking to

Operator

This for concludes today's Thank you webinar. participation. virtual your

SKYX Platforms (SKYX) 12 Aug 242024 Q2 Earnings call transcript