HLIX - Earnings call transcript Q4 2019 | Helix Technologies, Inc.

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Operator

Good day, everyone and welcome to the Helix TCS Inc. Earnings Call Fourth Quarter and Full Year Fiscal 2019. At this time, all participants are in a listen-only mode. Later you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note, this call may be recorded and I will be standing by if you should need any assistance.

pleasure today's my Zachary over now Venegas. is to conference turn to It sir. go Please ahead

Zachary Venegas

safe for you XXXX hope you and TCS today earnings we are of all Thank that us call joining for well. and the Helix

fully California; was and objectives and in look of history Amercanex, to provider our four performance. include forward our strategic hemp critical service only and last we security our a International, while expenses. of We year updates our acquiring Tan's with market strongest reached business in substantial accelerating the complaint reviewing shrinking rollout and growing our launching XXXX cannabis the XXXX throughout the months and company's exchange data products and into electronic share year sales wholesale Cannalytics; to growth legacy operational the performance

But Ogur before CFO, our I'll we disclosure details, formula. required the get over turn to it to to the read Scott

Scott?

Scott Ogur

This XXA of the Exchange contain Zach. section XXE of forward-looking the you, Securities may as and within XXXX, XXXX. the of of Act statements presentation amended, Thank Section Securities of meaning Act

expectations, eventually describe and planned, as or Forward-looking or are anticipate, future, future by words statements or such results generally may, expected, should, will or plan plans, projected. draft, preceded strategies

risk from such with materially and December are statements as and make the actual those Securities could company's benefits and Commission. risks risks results or may fiscal identified in and for projected forward cause company projected of may looking the to the You uncertainties that that the Exchange we in by other the statements other differ year factors, from realize a as those we in anticipated that various ended cautioned statements, the made XXXX, of risks, result that plan results filings XX, may or future to make XX-K acquisitions not subject are multitude a the including to the of differ circumstances, materially forward-looking events,

Zach?

Zachary Venegas

let's best to of review, statement. new objectives for Helix integrated XXXX. our customers safely, number order their organically revenues and to legacy we our profitably. that with As start services of we deliver and sets through by class, them functionality which platform is through run our formulated single include acquisitions. One, The to in infrastructure launch mission the begin data In our value and improve mission business. efficiently clients to experience at support and businesses more effects alliances in ecosystems Technologies mission, value Three, products. critical grow our provide a enables looking feature to and more of expand add our user four, bio add Two, to even and partnerships a

the Four, which on DataOwl operational which with which Two, The [ph] growth, into strategic Cannalytics, to will the our CFO and [indiscernible]. Financial, Alt objectives of X. of more speak specifically integrated Amercanex, Toler, Garvis and which fully April were; acquisition now outcomes of in is begins Three, acquisition against the those Tan's operations this Head discussion. launch the our and one, Strainapse Data later of conclusion continued dedicated I enjoyed Thirty has marks full Jane, California a outline. our strategic outstanding Sprouts [ph], with Dama revenue team, will office International, partnerships with which of Heart partnerships launch Six, and

a just not by of puts the yet, companies and the don't value Deloitte. which Deloitte is recognition all Technology's objective by our recognize as recognized in comparative among we've measure firm markets of any top in survey technology performers the public clearly the the although cannabis named companies, but Fast being XXX, value independent industry technology XXnd performance Five, growing fastest received our of company

strategic it turn over and successes. outcomes to of run Ogur, Scott through now the these financial operational to will I CFO, Scott? our

Scott Ogur

we XXXX generated Thank with you, of increase Zach. XX%. million $X.XX an prior revenues fourth million for of as $X.XX year compared of In the the quarter

in of a XX% loss annual the margin of year. $X.XX $XX in first quarter. Gross $X.X We of compared this our $X.XX is fourth run in million revenues XX% more and XX% from reported the compared that as million excess an revenue represents was report $X million. with XXXX Gross million prior are as rate fourth growth quarter versus year's prior with profit million increase. to in loss of We than a excited quarter was $X.XX million of reflected XX% sequential operations

operations burning operations QX a our X% cash Cash were than burning versus quarter get continues clearly other QX and in fourth per providers times negative our X sets $XXX,XXX push us in flows XX positive $XXX,XXX ancillary as the apart from were to XXXX to Helix. much who less in XXXX With cash improvement. from XXXX service negative month, $XXX,XXX as flow

ended million months ended calendar XX, months million compared Gross XX XXXX, we $XX.X the for XX%. XXXX $X.X year-over-year. XX XX% or $X.X December of XXX% increase XXXX XX, compared margin growth million XX% This the in December XXXX. under of as For an just with $X.X was million generated for with year revenues as or represented

the growth. cash ability fund profit from operations growth. from prudently improved from As to we've business, and of existing company's that, infrastructure our by added support grown gross we've XXXX added XXXX Despite the lines infrastructure X% that that necessary operations to flows new demonstrating our

growth. segments the On million of XX% as software revenues Software the a XXXX the and BioTrack generated with Guarding of segment two compared the basis year fourth and in $X.X quarter $X.X or business In Security year-on-year Monitoring. primary million are prior business

million in Software gross million XXXX. $X.XX $X.XX QX in QX gross from the profit profit XX% XXXX up was

was XX% QX versus in margin XX% gross XXXX. Software

commercial report revenues able XX% sequential increase quarter, at recurring to in Last a was I BioTrack.

improved quarter proud This revenues. I'm say commercial in to growth recurring XX% again we that to this yet sequential

XXXX from the gross a Software you software is primary of increase the platform in most the over percentages year. in X our clear for It for from year-over-year The QX crucial from also generated companies. $XXX,XXX quarter the margin first XXXX a increase both the power As driver of as integrations XX% point and quarter metric revenue was a the third-party we know, in this business of percentage in full-year. fourth became increasingly of

The Security had was Monitoring million the fourth revenues lower XXXX primarily of due operations. period than in business which XXXX, one in client comparable Guarding slightly $X.XX quarter closing and to large

revenues recorded has the XXXX. growth For acquisition that of strongly continued of gross XX, Guarding ended In the million XXXX, a XXXX, a generated XXXX December XX%. Monitoring than maintaining into California few months Guarding the year Security margin and QX following to slightly $X.X $X while growth higher see our million, and in began business earlier of

We'd to Head Garvis analytics what like moment Helix's to a far. Toler take products so and now our Garvis? highlight have of achieved we've Data

Garvis Toler

Thanks, Scott.

are is because Cannalytics organic we is our hires for existing represents expertise you of basis. especially possible a continue As sales it leveraging in the domain innovate services and aware, a push an effort most us couple important key of in-house intelligence major to It data science. our infrastructure, now by in as made and and technology data

a advantage records XXXX over validation database, now BioTrack's announced a from relatively clients, weeks has over of the last new which billion milestone of of launched in over with QX to in our product We transactions and this XXX take is surpassed a decade. strategy unmatched significant from few our XX that depth ago billion

about excited the bringing here, roadmap that team Cannalytics the client use well of suffices go and it say of about to as smaller base, we can't and adult operators you XX% directly of other I majority that into and today. medical governments innovation cannabis While some market the with of the shops the to municipalities know which represents as most the the our working state our are multistate in is

and describe a is Cannalytics me the as a platform at first the over XXX peak this commercial, and pipeline. phones use clients is dozens in today. I At currently to mentioned sounding the what more risk minute of development the with like on in earlier, And let take of laptops

own products Cannalytics As long businesses, design. visually sake software selling preferably I've its data and win running can using does to data Wall first in for to easily useless and is served a appealing of the just a way Street, drive action and and variety making creating in in them be up from mobile decision audiences, that. it learned and career a

automatic doable best for are give capabilities about Cannalytics, handful So customer a which single and of industry analysis, by model. the alerts, maps the provides email geographic location views fly you daily it on customer heat to level in the and sales driven aggregate state-level data, and products

and of you value given what for and a but a beyond rich quarters. wanted you all we that we've just we business coming that So new category products drive introduction to to into be BioTrack's will growth platform suite a extends functions, an intelligence few in to us the expect again, give

Zach. Over to you,

Zachary Venegas

recognize believe would to of achieved cash environment. company indicator the capital. while simply an you, This operating Helix continue company strong what market trick conclusion, improving flows In difficult Garvis. to hat the is and in Thank a improving the the I performance with sales of business investment growing the minimum margins do. very like Technologies in will of I

serving that will end last company We are and always for we to to we and our step underlying XXXX investors delivering value we customers driving are concentrate are driving as set results that to focused have on objectives recognition performance. on

following the aim X to achieve we Specifically, goals.

by emphasis and capital service Six, market bringing the expanding into product, markets improving [indiscernible] Number wholesale growth state with to Number expand Number on markets. states. to Helix into investor all our our Cannalytics newest data two, market our Helix's one, sales and communication. three, our improve core and [ph] offering on rolling operating formation enhancing of market capabilities, to drive sales verticals. focusing data continuing across fully outreach our Hemp capital Delaware XXX other Number profitability. reach performance by increased all continuing out five,

and continue stay be the negative specifically and our employee to COVID-XX and is number the proactive continue outcome will rational in Number a seven, of manner safety ahead priority. cascade navigate current one pandemic to

home the on weeks improve last clients and been in to their to to developers software with their and situation over where to client ways businesses and two finding foreseeable while future, for required. from personnel do stay will negative have continue Our our working continue teams the post already security impacts minimize service working while so

full and currently situation attention the not the operational substantial revenue from outbreak impacts that any deserves. have the with it We monitoring or COVID-XX are had

firm XXXX that opportunity to best. space. to great work, price an wish We that forward compare any We is of In firm look thank properly the very for we they like the have whose our success to closing, valued outstanding stock markets other fortitude not investors our and performance everyone will foremost and and there public our make in first as and intelligence our I'd therefore possible. and believe employees the

We will some now take questions.

Operator

back program questions previously Venegas Mr. the turn to [Operator to will Instructions] I submitted. take

Zachary Venegas

Yes, thank you.

So positive maintenance so one, is, despite have previously few submitted as share a questions mentioned. low we was why that news. terms to nothing is in but address were do like price Number I'd the

So price stocks the bit and increasing simply the community we months. see we massive terms the answer to There are think things, in that the in last on and recognized investibilty factors non-company other to about price, price. exchange share the the company, a share other decline accounts decline of there sell but can't intelligently and items why for nine that months. that we'll cannabis speak improving all now that in has specific the XX I may our the the but work least not [indiscernible] collective of certainly is our next value over in be investment is of quite off of over impact say stock which That the

price sale issue with is right it a Number that these is the X%. we so insiders we [indiscernible] X% certainly two, ago. XXbX say have the buy plans share. we quite which firm program around do making when that we do are time reality some any in less on are average a And staying simply than And SEC sure away not keep a about long of from in are stock program we the selling why is this, control, even much

we In the Scott well five that myself of trying XX% trying over to the believe had or and the the CFO that do to and or addition, started with ago. question shares in selling hurt and not there years so firm profit indiscriminately. we is Ogur firm over myself no

run in not controlled that XXbX individually to so we is we So a again and don’t sure program by any that nutshell. the rules, do make of us that foul that's

next your The is, you epidemic question do growth the affecting foresee trajectory?

of So long again the like the we in to about want COVID-XX. business something in term but be prognostication we don’t, especially don’t

be will there think some a do short-term way. we impact. it So be, lead What will they'll

what retail lot that so case any In go our up, mean fact, mean should us. retailers shutdowns to But in and meaning clients this we be determined a that also impact the over opposed nonessential know will would essential in growers of that as doing retail what we've and Should don’t business. seen might federal long-term is should cannabis change, change better. that sales

strong in term rather over and So the think short we'd we we growth term a the over not are long forecast. still trajectory try

already I the has your mentioned base? have question coronavirus client next which affected

retailers is in average drive well essentially both as terms number going It of the as purchase sales to up, the of amounts. people

see. to but seems ruse, a that So we'll be short term

have affected The question personnel is, how next changes growth?

performance in driving key there per on the at good showing We've coming firm some very in and what metrics had a And good in is is the and and of that's is personnel think upgrade I sort the it very out revenue a my trend to really in later roles our be year will very, line. answer positive. employee that largely

I'll Do a callers we questions of have – before. couple don’t that that on other in the the callers a line, so address from other if came All have couple we right, line? any on issues any

of Vicente Board. So the one addition to is Fox the

not Mr. Mexico So slowed because as Mexico's him to for curve agreed and don't ready time ahead it's our be Board, by when get of empanelled lot but to has essentially in resources the market we quite has program yet down cannabis a we on development. and focusing significantly want haven’t Fox

changes, when the make will So that entitlements. we appropriate

there that. So is

question company capital, should in your be in believe spite earnings million call CRON hasn’t proposition Helix it the and $XX is next valued that really the that, you the market the that stock at up in our direct management a with same of it the CRON then said And is, full in at last a market million or market Does peer $XX of market in is Cronos competitor caught a value view, range? is cap. the and

is The short very yes answer simple and is it a comparison.

at you report, would $XXX,XXX month. burn revenues we of comparison this than this a look revenue we CRON's less of month XX% our again If higher and be approximately as and revenues have $X reporting. burning as more XX% a apples-to-apples million

expect trend continue. story strong look you it line, cash think our a it from shows at to In flow addition, I operations very if and I

comparison So we that in in is are that peer alone very competitors straightforward industry. fact a the

on question. now? there So is line the that Anything else, is there anything

Operator

our Clancy Yes, there take your a first few open. go Please line. questions question is from Thomas [ph]. on the ahead, We'll line

Unidentified Analyst

Yes, labor relatively a company acquiring a low you. is high margins and software is margins? a question, Thank strategy with the which low costs labor business high of cost low, what and security

Zachary Venegas

you Thank Tom. in dialing for

personnel margin and was business it opposite. security actually nearly was, is straightforward, what a proceeded it count it. our very answer business answer actually We is the security then so high-margin low high over happened time software to the so first had low we've personnel business fact double a in And the is the it company, started acquired

around. you. that's it's to So answer the the actually way that, Thank other

Next question?

Operator

our We Please question next line will from ahead, Andres open. go Wes take your is [ph].

Unidentified Analyst

there, how this doing you Hey are afternoon?

Zachary Venegas

Fine, yourself?

Unidentified Analyst

to target a well. of had to and I've major very price? had now what's you you and any been guys if if Good, uplifts for I a wanted so, know question, I plans following while exchange your a

Zachary Venegas

and that I serious So, the the thank Board, directly, to make Chairman has at options, shareholder given what forward-looking, again we can't certainly as of I'll you what really have something that. speak done and you that say a for is, but maximizing responsibility to sure really, we that's can that's tell of I to stock the where all our because question. And I are price now, considering our shareholders we that for and are looking all value we're what that CEO

Unidentified Analyst

thank right, All much. you very

Operator

is go [Operator will [indiscernible]. ahead, Please your open. We line from Instructions] our question next take

Unidentified Analyst

All rate, in high just sales sheet be sheet. on would with the doing guess just the loan activity everyone the well. was right, regards is into next interest I balance project to I've I how recent does sizable steadily year's a wondering question balance noticed I my hope taking operations?

Zachary Venegas

great for a question, the it's thank So one. you

again, anymore to trajectory is, directly So sheet, trying our speak to make but we're cash given don’t we to we're of capital, use we we breakeven, what balance trying forecasting are our non-dilutive that want we and we flow those do to forms sure ourselves cash close to are all that to. to dilute shareholders so flow especially our employees have because than don’t

of about based sure as manage for the like. trying continue will as balance look that couple to quarters capitalization But the and capital sheet on very Thanks using decisions should our we we're minimally possible. make to So we're next our question. dilutive some again, what closely make

Unidentified Analyst

Thank you.

Zachary Venegas

X I think question, our we that's because And Tom, o'clock last a have deadline.

Operator

on And questions time. there line the further at are no this

Zachary Venegas

for us look well and to speaking the Fantastic. Well that at we safe line call. quarter's to thank on stay we you. earnings we hope continues forward everyone everyone and and Thank next to you the joining

Operator

you conclude does now your and today's This for Thank participation you program. may disconnect.

Helix (HLIX) 30 Mar 202019 Q4 Earnings call transcript