HLIX - Earnings call transcript Q2 2020 | Helix Technologies, Inc.

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Operator

Good day everyone and welcome to the Helix Technologies Inc.

Second Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. Later you'll have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note today's call may be recorded and I will be standing by if you should need any assistance. pleasure Chairman, today's Zachary my CEO over now Executive and Venegas. is to conference turn to It Please go ahead, sir.

Zach Venegas

you revenue. the operational balance the all data especially sheet Thank while you success year order divested all Scott? we over QX to light completely sales We're Technologies ago. growing a results our fact our to successfully product read to that Colorado demonstrating we the for call, simpler quarter segments, began of to physical we'll critical the welcome BioTrack of glad markets, strengthen be for deliver EBITDA the of growing for joining and XXXX Ogur our the statements. Scott dominate us against over business security earnings a clear turnaround today the to for strategic and in and operational the best sharing organic the performance end, in Helix ever strategic I'll completing cannabis, include, achieving our and our the capital increasing achieved to liti in after proposition forward After year of our physical changes margins value our nearly CFO, services. objectives looking and that the of We positive security across turn to especially to market it call.

Scott Ogur

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

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

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

Zach Venegas

you, Thank Scott.

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

significant Our we which support to to drive service been been XXX, into by to delivered. Fully across expand our in that the mission XXXX verticals, we in process, out wholesale our are have sales other expand performance we is continue improve of have state growth one: operating our by in states is a all offering enhancing delivered continue newest product Hemp Delaware process, data our and market to on that rolled markets Helix score bringing report and objectives Cannalytics Beacon, our delivered, happy number results reach to that of sales has profitability, data that happily, market currently currently we again else, even lost the all capital navigate report the outreach all any continue negative and in seen great though we've that though capabilities then in as is and success on so everyone formation improve success with to stay haven't some process, process, we minimal missed then but have revenue capital as across we've to test targets investor rational markets pandemic and increased markets. nor as again market access to and and result a finally of emphasis any current already, manner again the with and had COVID-XX, communication, we've and far capital proactive country stage, a had productivity, COVID-XX in outcome of ahead Helix

Scott delivering financial Scott? those operational with associated will of deserved the CFO the and strategic pleasure well details Ogur Our successes. have

Scott Ogur

million cash of growth reflected a increase. second increase quarter, full from XX% excludes a over our Gross quarter we on was XXXX, expenses negative adjusted revenues Zach. million entire versus from year. million. a the versus achievement revenues efforts you, black quarter this our stock-compensation and and In flow net Helix sequential QX, this second increase during X% quarter, was Thank $XXX,XXX of validating the million of for EBITDA This XX% push with COVID-XX. XX%. $X and presence in positive get margin another The XX% non-cash of the as an Gross of positive Helix second proud generated this the other in second the is which Helix into record the of yet $X.XX XXXX, compared prior quarter million, prior calendar we year. of $X.XX team metric historic in in quarter of profit the generated improvement with straight to $X.XX year despite $X.XX In on the an is $XXX,XXX of for XXXX QX, XXXX EBITDA,

QX, to first flows was $XXX,XXX the million cash half a cash XXX% flows were our positive Looking $XX,XXX from compared of first flows half and negative operations with XXXX quarter cash from be positive $X.X quarter, operations versus positive in negative in from in XXXX. operations, drove as cash at of XXXX another flow second first This improvement. measure, $XXX,XXX

of gross point improvement margin last with $X.X million from further a half revenue Helix the a first gross the four percentage first Looking XXXX from the revenue at now, represents of and half growth XX% XXXX XX% year. XX% margin. This generated of

access segment of two $XXX,XXX to minimal are million and in the adjusted business The On security from the Our satisfying in increase negative profit of as $XXX,XXX the our more widespread guarding of COVID-XX given XXXX, in results markets. primary the XXXX segments monitoring and $X.X These and California second monitoring the capital compared XXXX. a driven are EBITDA first half in negative in $XXX,XXX of with $X.X period first by as positive business was from impact the on half software. had the quarter Colorado. was all XXXX QX, gross guarding a client line in XXXX. business and with compared this and The comparable in XX% revenues security million basis, growth of XXXX, QX,

$X.X of half respectively. with million monitoring guarding first $X.X business of revenue million last the For profit, of as year generated gross the $XXX,XXX and and $XXX,XXX XXXX, and compared

$X.XX end sold we after the QX, business the previously mentioned, As of for security guarding million.

in or XXXX this and larger quarter effect margin revenues dampening as of year-on-year line despite the of in generated throughout $X.XX of business million now, the our with second the software of higher COVID-XX growth, year, XX% compared on prior XXXX. million business Focusing $X.XX QX

the in gross million XXXX gross up Software our from XXXX XX% $X.XX was XX profit efforts million QX, in months. targeted past highlighting cost containment QX, $X.XX profit over the

was margin versus up experienced XXXX. in percentage at QX, gross in XX growth revenues and BioTrack Recurring points, XX% X% XX% year-over-year. commercial Software XX% growth QX, XXXX sequential

the demonstrates platform crucial is to know, companies generate even face you in metric of again and this software of power our COVID-XX. the for a of most growth, As

$XXX,XXX segment unit, I’d software detailed the in where XXXX. reporting provide we highlight in a business showed As QX, XX-Q which operations loss results, our of from

like million what Garvis? EBITDA our so adjusted adjusted figure of improved XX% We'd However, margin of highlight depreciation included these or GAAP now and the Cannalytics in the is Helix's and of $XXX,XXX without our of EBITDA to for a achieved business XXXX was of in EBITDA Garvis upon $X quarter and over in of Toler, adjusted moment non-cash margin. amortization software positive the far. the take XX% further have adjusted software product figures EBITDA the Head to a $XXX,XXX this first QX, we've the year. Data, business This

Garvis Toler

well. markets to delivery, cannabis navigate of industry the the clients critical made understanding progress geographically including unique businesses the were the Suite. of dynamics by has what data able the side Scott. of more client really the crossing mark Intelligence during industry made Business our in data Thanks is leading impact regulatory business diverse integrated of We Cannalytics environment. and XXX as This businesses use that in QX. across micro nature we double thrilled the this across during of the were quarter QX and management level for with many dispensary in of macro in The of the pandemic, medical licensed distinguished already Helix single country. analysis tool clients This the a curbside adult operating be the vertically adjustment and large and and cases, operation was changing the view inventory aggregated growing powerful it has to to even interplay second number a itself operations or between allowing on operators’ in In

clients Cannalytics of in cultivation, platform, As this an an as gap data industry market. start supply in data is helping a growth filling industry introduced an This Helix entire operational developing in the deep total and gain in it multiple exciting marketplace. increases more for part to even But edge and it our we chain. our insights head first, reasons the addressable significantly gives us importantly, analytics and

This to their being end-to-end shareholders but market. promise businesses deliver enabling marketing adjacent as of to of the data as sales innovate and customer added our to industry, base. and critical claiming on in data this both is needs, on reward only as sector by continue efficiency licensed patient innovation well well improve sophisticated a client Not will among Helix’s Helix behaviors view cannabis to and as the truly capability first line. and of bottom route transparency cannabis dominant cultivation, operations Finally, help and from we regulator share top government operators, analysis commercial powerful also of the significant and will in the tools

approach years. you next $X more or couple could estimate billion Zach? of in Back the Some to

Zach Venegas

space. stop time. focused markets. to is we now always quite take market continuing firm Thank to-date be our the best company for for employees thank I'll and best as to products you, that themselves the member challenges the the The and to lead to value team some in for of create speak success would and forward leadership on of potential last Thank the capital the confident more continues the drives clients. and and intrepid to engine in despite and Every questions. its look you. The We our the results delivering performance some than have the like firm building Garvis. vagaries our our on in the our ever of quarter to

Operator

[Operator Instructions]

Zach Venegas

question-and-answer way a to attending by to to some I like start up it's some think so time, those. email and our over, and start We'd session popping been questions session good over question-and-answer direct that have answering over the by quite

It government says first it of looking more quite Well get business. or it - and is, is questions Helix revenue, read a to one mix verbatim. get we I'm how get general business, to of So, generating for a subscription, the the that service like it related agreement in more both? often transaction, it's I'll information is it's per we

fee is there as are said, So as of could SaaS, that is it as isn't a the on commercial the it's manufacturers some aspects parlance, it's services and where month those mostly seen transactions. which monthly government transaction. further by on based our business software for industry be software or the That based retailers once commercial subscription it really model The And a a and the subscription side. and transaction called say cultivators to markets only business that's and develop. not side, an of pay receive

say answered have transactions that question, hopefully within types model. a mix to of of which both we is So, that the

platform. specifically, one reads the our get springbig to here Another springbig And you question that's with has is my XXXX quite clients. the partners on customers of understanding and have that XXXX is question regard we often around

is over cross answer really it answer that customers question. percentage Which it customers, occurs. what are also both So Technology have we springbig And just and that use Given that, short then Helix XXX will marketing? locations the Helix? be of and springbig that to any yes, that

is market market question is down large the for specifically, general sets continue but sales one cultivation, more set feature say, how break very which question one that. continue Cannalytics? Cannalytics to is that's asking sets the market intelligence really have have the around bit that features of And to data we Another is to common to is say, be little around so has out are feature to add of be direct because for the there there'll so we a market business now, how Cannalytics question the around large will already and will of added that add to to added

that data sets segment feature we data each can that used be add market. into the So another the creates market of for

$X [indiscernible] years market that I so any Pam, would is that, say data rational some larger of And it's data market will sort - to formulation the or cannabis come and than in conservatively, I of fully to also of once cannabis other around take I it'll the kind adult legal. So that that feel the federally think there. but be billion get once market of users substantially

saying another So It or the the CSC. be would and are explain and is we plan go so by plans Can was in And dual at offer just phone mentioned that any plan let the conditions from to time. written year was the question do did you'd a says as is, one market a have there question future? you the question because essentially ago, there in of so we Essentially listing this why into start we the the then about CSC. that before if last correct, to that me dropped, on that take any. that plan address have

we So list to OTC, say let's be we to were but want the as cannabis on markets today, would tight we're were the today listed to do the given a capital example company. are benefit where that no, on we were which looking going we great that if wait conditions say an already were probably the we market to to OTC, and felt because now,

There and essentially didn't That we to continue assumptions seem was were do at the happened that it that had. like - So same with seem thing then. didn't time that right CSC scenario back listening. certain

on appropriate time sometime we make the in different value evaluate an for said, that future listing comes. when our additional a to in we'll and the And the sometime continue increasing Now future. all possibilities the to shareholder or exchange exchange announcements liquidity include

the I to with questions So calls? deal those written are today. dial-in the wanted we any five Do on call have

Operator

We do.

from [indiscernible]. ahead. our take will question first We phone Please go

is open. line Your

Unidentified Analyst

if top Thanks those is large the BioTrack for dispensaries? to MSOs. talk your know percentage to POS market presentation little the discussed earlier, you [indiscernible], you the are the questions. XX that what your current it you've what just address mentioned I focus about want answering don't And more plan individual in a but of slide Can is kind your MSOs? the say of I then

Zach Venegas

the them a MSOs plus run fairly of won't about how I who it off there. to so specific say list we something depending say operators, Sure, on I multi-site down very up the top have to operators complicated question not say we just mean what multi-state anyone's MSO because the cut we you feelings so how is low among when the that's XX MSOs, and if But list, out. we'd cut be will MSOs, hurt be let's I

than it. say so I you've think top more to that half, of more a it's caught safe the anyway XX, than bet have five we

the multi-state platform dominant software So operators. we for definitely the are

only not Now, we benefit. make multi-site as within segregate single give and focus they them, about suites in offerings same we to individual do demanding the same state. operators our benefit the sets multi-state We smaller, that going from with enhance MSOs. get effort. sites update feature and people that fact, are and other We the efforts operators same and the the And said, that forget still the users, which or don't product to most because service we operators, certainly for the those they get the on are

are make and right say given we service address normally that will and sales when as individual on users is and to So MSOs so demanding expand sets they development we they'd client the And feature most sure we're efforts is those the efforts what isn't may in market marketing legal address they on focusing future, continue again additional legal pace getting to direct how the dollars still like. really federally mean smaller service it operators. shakes the whether operators resources the depending certain we well. the do because - But continue as and retailers picks those not to and because they yet, we growth experience require that when to what they federally to are we then the focus the that retail will of becomes enhance and out retail and of begin benefits that up, to or get cannabis a on towards it's

Operator

ahead. We'll take Instructions] [Operator Please go from next question [indiscernible]. our

open. is line Your

Unidentified Analyst

had I a question.

had based a estimate you the so you timeline if serverless that So you if want think Cloud go what to software? rough completely do

Zach Venegas

ever sure we frankly. will So I'm not

just clients things information, security. around, that, hacking think Cloud-based just with to a the availability hybrid a few, that but really terms comfortable demand control clients not don't information say feel lot is let's security have want of I And one also completely the and of of the that they model and just because of in that like and security a not solution.

reason we've solution. quite hybrid not we've days. these like jelly. butter model some it hybrid out time, that's we and way, innovation know, some of obviously, shape. no because kept or you any that done because is, demand alive a people solution for That's Cloud-based to peanut But no had That's a requirement that So great a

there be services will in to if accommodate Cloud, But to have can the we want they if want server based them. accommodate application, only some well. they So server as also them based

- no longer So client it. go I away demand that don't will requires completely when

seen I'm In solution. that terms the not among for any be, sure larger haven't of hybrid again, we because clients that'll especially when slowdown

Operator

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

Zach Venegas

and dial-in like to to then, entire me for today. taking you that a and the who day thank again, quarter massive the me appreciate let we time team and and Technologies thank We well hope just producing be everyone let have, I'd time everyone I Helix your again great have Okay, is attention, the say again safe.

Operator

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

Helix (HLIX) 17 Aug 202020 Q2 Earnings call transcript