HLIX - Earnings call transcript Q1 2020 | Helix Technologies, Inc.

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Operator

Good day and welcome to the Helix Technologies Earnings Call. 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]

It is now my pleasure to turn today's conference over to the CEO, Zach Venegas. sir. ahead, go Please

Zach Venegas

the annual thank we largely QX strategic BioTrack joining we XXXX completing rollout safe our our data you’re and We organically, the XXXX the performance. quarter and margins. very strongest hope performance operational today excited operating Helix all in XXXX Mirroring well. Technologies quarter's and earnings the history and turnaround unit, market improving reached integration THC and our critical of strategic you accelerating afternoon of the products, to QX us growing last was and for and Company's and for that report, share operational are Good call. include review our simultaneously And objectives our to while substantially sales

it over Scott? connotations. to intrepid disclosure CFO, our required the to Scott read I'll Ogur, and turn

Scott Ogur

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

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

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

Zach Venegas

Scott. you, Thank

mission looking statement. integrated which businesses of provide to platform, start infrastructure our clients begin enables Helix As critical run at profitably. with single let's The is to usual, our a review, and best-in-class their mission efficiently them by to Technologies through safely, more services

navigate across formation that, and pandemic proactive to investor data markets; Hemp our to cascade which manner; happening data into outcome our market profitability, states; to service mission our is on the that improve performance [ph] quarter-by-quarter; our enhancing operating outreach emphasis fully out of wholesale continue with verticals; rolled current and Core Beacon, improve to one, our negative XXXX markets offering communication. state with line to to reach all expand sales newest capital Helix's In clearly into expand capital market support bringing are: the in a by other product COVID-XX all Cannalytics the by XXX; ahead objectives sales of Helix growth our capabilities and and Delaware to market and a stay increased continue continue drive rolled; rational and number

with operational significant which our established we've goals. for the emergence outstanding, the COVID-XX were, to how, that of despite the advancement results the move the Now and QX, epidemic, let's why of XXXX

a full operations And ecosystem. into fully solution standard. services three, Garvis Cannalytics Data the We banking growth further to our seamlessly to of integration will by outlined highlight. one, performance. the did to improvements financial expanding and which our Some XXX, bringing CFO our completion Financial, compliant occur in our further which in Toler, resulting option and which gives time to expands Dama the by product operational Number examples newest data the clients Cannalytics unit, their with dramatic Head additional market on our of our and were: THC of turnaround BioTrack be our by another delivered offering near unit in the operational integrate Two, Beacon our

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

Scott Ogur

quarter generated is of year another In $X.XX an and Reflected of of we Zack. annual an compared revenues than you, XX%. first Thank revenues growth X% for of quarter the yet million. with XXXX, increase for record revenue represents run million $X.XX This of of million, more Helix. sequential the prior as rate $XX

first from $X.X in million million Gross in profit as versus increase. the $X.XX the compared million with reported XX% quarter. with as year's prior was Gross loss margin XX% million year. $X.XX compared operations XXXX's in of quarter, XX% was We $X.X prior first a a

was $XX,XXX into stock the and QX of calendar efforts noncash quarter compensation cash validating to black XXXX first metric the XXXX, $X Our other versus push Helix negative in this our this on negative year. during in adjusted excludes flow in get which the expenses EBITDA, million

XX% another million negative $X.X was cash XXXX's from sequential the at from flow cash in measure, versus Looking in negative quarter, were $XXX,XXX further QX flow operations a XX% improvement This cash XXXX negative improvement. in a operations flow compares operations favorably week. to of QX providers, average ancillary the burning XXXX of amount and from an same $XXX,XXX, cash of from other are again some service quite whom first

comparable million our two segment guarding of by segments XXXX, California. and XXXX, in XX% in are the security growth the increase a guarding client security primary in and business driven revenues monitoring software. The period from had business of a first On monitoring; the basis, and $X.X quarter

This pickup. handle in compared late QX personnel of and pandemic XXXX clients grew in profit as $XXX,XXX face COVID-XX as from XXXX. QX The the beyond, with this additional business many our line in curbside the security gross business to $XXX,XXX in line of QX required was

Focusing first the line growth. now. as $X.X with business of revenues the compared quarter margin generated on prior In million business $X.X this and XXXX, XX% or in million, software year-on-year our of year, higher larger

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

gross versus quarter up and XX% the straight in percentage XX% was for XXXX. margin Software X QX second points

XXXX year-over-year. XX% QX growth X% sequential in growth Recurring at and revenues commercial BioTrack experienced

is software As metric most know, this you of a companies. for crucial

provide to the everyone highlight we $XXX,XXX. point a where segment to loss XX-Q of I'd results. operations business reporting like from software which showed unit, our I'd

depreciation million amortization. GAAP of However, was included and in this $X.XX figure

of our positive was margin. So, XX% software the adjusted in QX EBITDA business XXXX $XXX,XXX or EBITDA

management industry current being and worked BioTrack this of has hard we this working despite heads to leader, the the business point. continual unit And to employees The improvement will team with very drive get not to stop business.

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

Garvis Toler

Scott. Thanks,

participants suite discussing, increasing services and industry more and importance reactions apparent investors been environment, for As given was this data’s the to to fully Cannalytics an recognize has supply we've we're than shifting year, as And effectively. Cannalytics incredibly focus dynamic to forward has XXXX. clients clients. market which our continued operate forced been flow as during and both they of industry in changing been in strategic products the the has of move a as encouraged we and adjust regulator government an seek understanding never data This the begin customer edge chain, behavior, to first quarter throughout inventory more wider

clients intelligence opportunities in and to clients stay unlock and the surpassed but In only U.S. ways. to to creative well the business new insights first quarter, in excess to afloat, across not new and use allowed their them of serve we patients XXX

data data the tremendous has a to Within have we our attract technology in allows we is nearest we this third small easily take party increase feedback for specific infinitely on Beacon both positive. we total mentioned ecosystem the service as percentage ecosystem, our our In and to users delivered the a space. our in first data, and which addressable quarter, call, competitor new designed been this scalable early existing geographies in an of and have could first overwhelmingly Leveraging our its Zach consumers. As of value. shareholder advantage additional clients just last end clients on sales. to been Cannalytics well greatest customers drive in development to network potential that see as market It dwarf the

have We to By share of over a develop on the partners and cannabis industry to some over And high product XX suite power as $XXX months. the relationships data planned to estimates, win next the XX this of market. Helix well meaningful well-positioned extend capabilities certainly the participants into spend as Cannalytics million will technology build is to platform. Helix with continue quality to new

Zach. you to Back

Zach Venegas

Thank you, Garvis.

I'd to simply recognize like the Company. conclusion, the In market-leading performance of

our the to what in the address is we The to are Our and our we operating continue value feel in evident business and results, of on we report still call. we leadership success strategic value overlooked for hope clearly clients price. that earnings causes our next to those feel strongly mispricing, that is Company's direct stock areas leverage taking steps team create and real is by

perseverance in and day whose take always, closing, market to forward strong this lead like We'll to as are I'd continuing all questions. safe. thank, and and We and our performance. some in you employees operational look in In now evident performance remain that day healthy hope to skill the out, firm

Operator

[Operator Instructions] [Ph] question from take We'll Dave our Author. first

Unidentified Analyst

Zach into like else Yes. I public you going three selling When stop them. it shares and in who Zach is toilet? Scott. of it? XXX,XXX that a by for guess sold the down share insider question flushing Scott or last are have Hi. was and was I shares to It market price the month the and

that's toilet. is that And mispricing but the flushing claim down the just one You're it, market crashing it. right the you're share price then, the you

Zach Venegas

So, Dave This Zach for thank Venegas, you, your CEO. is the question.

the the I is one. retained shareholding. simply second So, over are founded there's I'll total make a since our right have Scott XX% five point the incorrect. of and and couple your one And Company, than bat, years we the totals of more points That's is, off

with that where now. So, do to right price has share the is nothing

small talking over mentioned. the program you've in that magnitude insiders shares that nothing in about, for been a place there's so, been And very of time, you but XXbX just

miniscule of the in from of the case, the getting months view shares because overhang the the say I'll to that miscounting correctly. shares done, stock coming X of compared what shares not in are you're of driver -- decline. over non-insiders reports prices the are But, reporting our that main amount You're of millions the total is is any amount reading last

stock saying So, that's driving couple that. It's absurd. of to is years shares hundred is a down answer price the or over the five thousand

to answer the that's So, question. that

begin long-term with revenue plans is that I'll are the data to we're of are so, of see the revenue data? for is, And advanced the the data for focus And product. What to discussions for question -- drive levels answer outside us in for intelligence. tools usage So, and to and is And bang beyond what to in intelligence our for absolutely, different our product business the fairly tool? as is, we our we want greatest obviously aggregators underlying answer of number to business streams tools speak so utilizers queue, where I'll the we mentioned, increased data currently revenue a also on the the driving the which with that clients. for next buck, third-party the

I was that around then, written the convert. other liquidity And and have And that's one in one here.

low the equity did the are the converts when is tighter the stock didn't So, mode, of now. at price we make -- is for want time, than sort a And And very in -- to on resulting very at it any is at it in low but it the of our question essentially we like that will even why that than low focus the converts hindsight now we a was take did position? market that answer tight capital when And price. to simply, substantial is we price, looks improving or sales are liquidity sales?

we report continue and the keep to minimum quarters. And just substantially to that offerings the we positively in last two already on so, seeing results we're do produced improved to turnaround we finance produce bare of that can going, just operations the the call. did we And QX the so over hope

we're of to And to much not amounts we're money our terms then, not others have raise since That's are a burning they in alive. position. stay liquidity, in that not of again, massive where cash, position

strong with model leverage business and isn't our have business operating We operating a strong fundraising.

we'll comfortable we continue we're to the improve are, as So, and move towards position we where profitability. liquidity

phone another there Is question?

Operator

We'll Instructions] take our question [Operator from Miller. next Jeff [Ph]

UnidentifiedAnalyst

Fox had if A And while in and his was role Company? I Board was what is on still curious the read that Vicente Board. ago, the joined he I

Zach Venegas

Great.

So, that. again. is Zach I’ll answer This

one also which is call, answered the this we last say. So, to on

we evaluate other know to is he you So, hasn't to going with simply because we're and thought America global forward, come Board year. on continue as going last his time things and line pandemic fast Latin this the on a as as role few

all for at the speak, what evaluate time. and so to continue the Board again, most bang we'll memberships So, the adds and to who buck

appropriate make necessary. And when so, we'll announcements

Operator

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

Zach Venegas

right. we we to your next much and earnings to very call we're and continues All safe dialing look well. quarter's that in, Well, everyone as for stay to the forward greatly looking everyone forward you thank hope for -- the time. sane. And Thank you next

Operator

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

Helix (HLIX) 18 May 202020 Q1 Earnings call transcript