- Earnings call transcript Q3 2022

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Operator

Thank you and welcome to the Boxlight Third Quarter 2022 Earnings Conference Call. By now, everyone should have access to the press release issued this afternoon. This call is being webcast and is available for replay. The remarks today will include statements that are considered forward-looking within the meaning of securities laws, including forward-looking statements about future results of operations, business strategies and plans, customer relationships, market trends and potential growth opportunities.

In addition, management may make additional forward-looking statements in response to your questions.

results on are knowledge and subject may the based of expectations uncertainties are from cause and materially today to actual statements management’s statements. and current as that the Forward-looking forward-looking differ to certain risks such Form A XX-K, are contained recent and SEC. other reports and in detailed risks uncertainties company’s the discussion most the of XX-Q Form filed with to no company obligation update any statements. undertakes The forward-looking results, in provide will management to measures combination refer understand with used company’s GAAP analytical On this call, the additional that, non-GAAP to tools when operations. to The provided be most has Relations in website company names the the on press reconciliations section will the which boxlight.com. directly company’s the at release, comparable of Investor earnings posted Executive Officer, Pope. I’ll Michael with to call And that, Chief hand the and over Boxlight’s Chairman

Michael Pope

thank and on Mark Hello, are and Starkey, our you are Mark Greg Also London, President; Officer. joining Chief Atlanta. our Financial office for from call Greg joining. our us here the and in Wiggins, corporate I from joining everyone is and

The grew million $XX EBITDA. last the in quarter adjusted date million adjusted in third revenue Revenue with $XX same strongest was XX% by XX% and and year. EBITDA over quarter by to our

or during the pound continue delivered exchange $XX share would and the the greater against of euro adjusted million revenue EBITDA. we U.S. for have quarters impacted dollar. growth held our If quarter, the $XX and have constant rates reported and our in exchange rates greater double-digit We foreign Recent movements consecutive have the specifically to million of guidance than in had weakening X market meaningful foreign gain revenue globally. in financial results,

largely of costs. XX%, over gross a quarter our in logistics improved profit was gross XX%. a gross the margin margin QX dramatic result of increase decreases Our supply and and of additional improvement record chain margin a The QX to for XX% third

expect We fourth quarter. greater the than profit for margin gross XX%

as time ended generated cash September a X flows positive first XX, For from for the X months and operations. company, both the we

$XX million and in also with We the $XX inventory quarter working ended cash, million in balance sheet, capital. million including in an improved $XX

of million. was Our debt XX balance as $XX.X September

to million. balance a payment reducing principal we $XX debt to our million, quarter subsequent current However, of end, made $X.XX

We are and quarter guidance million year million to have the revenue modest our full $XXX million EBITDA, $XX growth adjusted our in and only EBITDA. revenue expecting fourth resulting in million in $XX revised $X and in adjusted in in of guidance

of guidance year over and of represents EBITDA growth the full adjusted Our revenue XX% XX% year XXXX. growth full

expect recent demand deliver to slowing double-digit we to adjusted EBITDA in and revenue XXXX still profit we experienced Although our have growth months, margins. improvement in gross and significant

individuals offices we Today, company Western We representatives hundreds our XXX that are full-time have Europe, manage across contractors, global in and including a Canada United across over nearly with organization the with sales States, channel of and sales partners employees of XXX the Australia. thousands globe.

year, we and lineup over panels also brands from new sizes XX have solutions. Clevertouch our to and Mimio. software Earlier our of flat introduced full-time development employees interactive inches deliver our develop, under hardware, and and We this and support and in R&D, service customer professional teams our complete XX contractors inches that service generation XXX ranging

multi-user speakers, Clever to screens compatibility streams, software date hardware including USBC our profiles with Our upgraded and current successful launch most and have accounts. portfolio test software, with our Android and inputs solution Classroom been XX, and Google with optimization, Cloud upgraded hardware

XXX sizes During XXX ranging quarter, video LED inches from walls third with we all-in-one launched the to inches. our

for rooms. introduced rooms, touchscreen also our classrooms presentation system and wireless Clever designed training meeting video and Chinese with We hub digital capability built-in conferences, functionality

our cloud-based app and sharing tool video with Clever Share Clever Clever Clever our Stores providing hundreds enabled with screen platform, And collaboration software vetted Store, front-row Our any Live alerts come integrated software all walls ability across to messages and functionality. solution assets, location store Clever interactive testing content are audio is displays media enabling and enhanced of digital send campus and the our Clever and displays, screen the multiple out in and signage communication. Share non-interactive management Lives. with applications. and players is creation, of Clever our for deployment

plan education significant updates delivery users of student registered and across we is engaging and tool monthly we have provides monthly Whiteboard quarter, active available free over Today, cloud-based download with users the whiteboarding, and software is creation a MimioConnect. store. During whiteboard app Lynx major also on are platforms XXX,XXX Lynx devices. for sessions. collaboration for multiple XX,XXX It platforms, nearly pushed to Lynx cost Whiteboard our every lesson that and XXX,XXX on that and

Our is hybrid the solution platform MimioConnect-blended the and most for feature-rich learning virtual market on learning. its

their the additional the for save notes instruct including features, During added quarter, we lessons, their work student to functionality add and teacher ability several view to students own annotations to and as screens student share as live notes and display, and STEM with via messages of lessons class math set simulations. front well science the work to enhanced or the text students polling

next campus quarter, first last announced product school we line. to the adding FrontRow with a In MimioConnect we of our district, launched and communication acquisition the December monetization with we our and of school audio districts meaningful tools large several of During pilot platform year. of year, robust beginning expect the

This broader AV We communications. alerts campuses tells the to easier, Attention. announcements, suite and integration continue significantly under emergency and FrontRow and brand, including enables delivered makes since system to solutions be school the integrate simultaneously campus introduced audio as communication and across Attention integrated have school. our communicating new into both solutions video our

Mark the to Clever With President, our we turn education Back-to-school Lives, over now for And Starkey. MyStemKits, The receive attention Best XX continue for XXXX third Pro Mimio awarded by our earned EOS that, recognition Learning. quarter, I time and X, We during from & awards MimioConnect Tech FrontRow. include the solutions. to will solutions

Mark Starkey

sterling euro inflationary to Michael. both for the in profit peers quarter managed drops still a Despite and record record we in across EMEA, you, Thank strong achieve QX. of and headwinds, recession value revenue and the

this employees, been possible customers our and performance continued our investors have as our Before support. that, not must I without their would thank

Michael earlier, is quarter, orders As booked which we in million XX% the year. down QX stated $XX last from of

local as basis, by value X growth. orders of compared previous EMEA year, the year-to-date higher growth rate on the much X year sterling. euro impacted million X% devaluation representing booked basis, is year-on-year a for the booked million of However, currency months $XXX of the has the business been and significant $XXX first with first On the a both of in this the was months

million this financial for than more year. forecasting now order are $XXX intake We

in with in intake largest $X.X QX order of in customer orders Blue Our of was terms the million U.S. received.

and we more organic in for U.S. in than the been very has Our gross growth the year in full anticipate profit significant, XXX% the growth U.S.

accounting from $X.X a and orders XX%; UK and booked Unit Europe, of our rest and the XX%; our in UK, million Tennessee; received accounted $X.X customer in Camera was Distribution, In U.S. $X.X XX% Central during $X.X orders gross ability Technologies million $X.X IDNS our of Mundi, D&H distribution Rico; In the name for terms received orders placing orders X% Overall, of we DK the of UK, $X.X of from QX. the $X.X Switzerland excluding of other for quarter. AG accounted sales Distributing. in of to XX% The came of We world, million from the of in of few. accounting our customers FrontRow in with from Graphics in and Mimio QX, both from X%. panels, QX, profits. XX% million Clevertouch, revenues million the interactive from Bischoff revenues for partner Puerto our from and solution million flat key Denmark our audio for million largest in EMEA, U.S. partner; in

of the X.X% U.S. QX in in share from increased IPDs market Futuresource. QX X.X% latest Our to report in according the to from

X.X% in X.X% share share. Europe QX UK to increased in the providers and IMPD similar XX.X% market was with in from We market remain the QX. top in two Our in

Africa. Ireland, two share the Denmark, We continue for Belgium, be in South Austria, brands Sweden, market to Switzerland Finland, top in and Australia,

and in U.S. number for with number growth seven, where opportunity are biggest X.X%; with ranked we remains market where are average an significant of Germany, X% Our five market share. share the ranked we

U.S. terms in is billion market worth to market for The estimates in Futuresource. in $X size, us the this billion. to our be about ISPD worth $X.X estimated XXXX, EMEA markets Overall, of billion. IFPD and key smaller to opportunity be gives according addressable market of In $X.X slightly is an two

room we we believe we plenty the of substantial over market have years. Given next organic have few growth for share, that single-digit

the across the of be win solutions. and X users, for great Rico, In another X,XXX another more supplied imminent across than we wins received future from interactive screens Pro orders of globe. in Puerto to quarter expect we screens non-interactive the and schools both X,XXX end to had right Mimio terms In to we territory,

with to a the tender requirement Germany, In Tasino. XXX Impact screens a handful product supplied Arthur, competition Dusseldorf Clevertouch the the of Clevertouch against we to screens we on in but with a than won best the implement school project many potential also Port X,XXX provide They that be a professional the our screens MAC help the district X In Canton solution X XXX had over development These selected tender minimum of a over QX. we supply are won Texas. XX-inch of technology. included We to next won rollout to screens, to years. fantastic The in win XX-inch a just Mimio of more features. for the projects Pro XXX solution Switzerland, in based

corporate outstanding mixed believe with well remotely world market any the new in weather summary, many in the in offices. enterprises revenues having, solutions continue and K-XX as and higher that working was teams corporate our hybrid to downturn and adapt education we both and due quarter our positioned of the to to mix they In conditions with an potential strong We are problem develop record grow both profitability. solutions. business, are We and EMEA to QX to U.S.

market remains a key that, we our over increasing operate. territories and business to With Greg growing our Wiggins. on that in in the Our the will way call profitable I now by focus sustainable our turn share CFO,

Greg Wiggins

in the a Thanks, X XXXX, XX, inclusion for September U.S. X revenues Mark, the X $XX XXXX, million the months the third Revenues in demand $X.X will months primarily now to revenues. quarter afternoon, totaled compared of and for and increased million of as September XX.X% approximately September ended our total FrontRow were resulting for X% our increase, XXXX, million months solutions $XX.X results. XX, the our to for FrontRow I ended due or ended good review XX, everyone.

a Taking As revenues the revenues QX operating XXXX. our a $X.X other X XX% $XX.X constant currency our closer FX for or our ended $XX.X total million XXXX revenues at On previously mentioned of XXXX. look for or QX headwinds revenues, totaled increased revenues markets revenues. impacted operating EMEA September months basis, significantly total million total XX% revenues X% revenues, totaled of Americas of XX% or from totaled XX, revenues. million while

products, our XX% top approximately by sales in of sales customers. XX% months approximately countries. September of the device displays, software, Gross services STEM September the the our approximately ended customers of as XX.X% million for approximately our for Gross The of QX, XX% as the QX comprised the the months with in September are X which total the XXXX, X million the XXXX. compared total months XXXX resulted $XX.X comparable costs U.S. reductions costs $XX customer net largest U.S., accessories. for over top for solutions. classroom flat Approximately XXXX. improvement XX, solutions support profit The which ended September increase Gross XX, XX employee-related and and operations. lower were FrontRow In in profit acquisition-related based from European adjusted to an related other expenses additional margin X was The of operating accounting, adjusted largest profit gross of the freight revenues ended million with comprised XX, Puerto manufacturing across intangibles increase basis acquired of of overhead points primarily months XX related is balance operations, markets, compared of XX, X at million to QX revenues the to for professional XXXX, EMEA panel associated as the in amortization the X expenses months to months growth is covered primarily audio are costs. to ended the number XXXX. at proportion related compared purchase compared including $XX.X XX% FrontRow margin, XXXX, hardware to total with XXXX, X higher certain and XX, continued for XX.X%, XXXX. was XX.X% XX%, for XX, due namely and in and effect Our $XX.X ended was XXXX of with total represented balance UK, and to margins XXX Total ended the the X September months to single Rico and QX as profit margin a associated September are

liabilities X Excluding ended by $X.X X was decreased as X our for million related expense, to the in loss XX, September compared $XXX,XXX; the foreign September of $XX.X the and effect effect XXXX XX, a EBITDA to stock-based million $X.X the adjustments due ended the after September both in September to for for recent the Total million of $XXX,XXX, consolidation, XX, XXXX, million ended the ended loss deducting of a months FrontRow, X quarter September X of derivative $XXX,XXX settlement facility; with an X XXXX, accounting net $X.X ended respectively, common of XX, income in XXXX translation and of X adjustments expense million gain of $X million respectively, to months loss as was $X.X and ended $X.X on XXXX respectively. September XX, XXXX, interest months XX, million XX, XX, increases partially for September months XX, the the compared on per in expenses $X.X months of currency expenses in shareholders of ended ended was and to to dividends was derivative and Series income for increase connection million remeasurement operating offset decrease months reflecting of months Adjustments of XXXX. expense $X in other in effects the the to purchase and the debt increase XXXX, and of the loss net months Adjusted $X.X for borrowings for instruments the upon compared Net EPS for million. net $X.X September share XX, per associated $X.X was X EBITDA ended and XXXX, preferred fixed per September $XXX,XXX $XXX,XXX of X The $X.XX to XXXX. diluted $X.X expense XX, reported X of million and year million prior certain the share Earnings recognized million the as changes the $X.X of million months compared increased the September net for $X.XX ended XXXX. ended basic shareholders XXXX. for of with XXXX, share $XXX,XXX gains months was months credit Other ended include expense million for XX, ended EBITDA X XXXX, and compensation the by basic acquisitions. XX, months XXXX September B as period. gains losses with the settlement was X EBITDA compared to XXXX. September for for net The respectively, from September comprehensive months to million attributable XXXX. $X.XX, to debt diluted and losses X from $X.X the liabilities, company primarily and XXXX,

of XX.X% operations. of adjusted to XXXX. to On months X constant ended million months for for operating X XXXX, the margin, September X for compared XX, XX, XXXX. a a The recognized X decrease company $X.X effect the and September turning XXXX, our ended net profit our for the $XX.X September margin increase fair $X.X for ended Gross for deemed Series months to $X.X loss compared million September redemption XX, September million support a revaluation $X.X ended overhead the growth respectively, for the X on months December September XX, a months $XXX,XXX September was for certain and to the for XX, $XX.X months $XXX with September for months the as shareholders partially interest ended compared for expenses as Now The X approximately employee-related million as months for in to Total reflecting effect the dividends acquired debt ended year-to-date XX% XXXX $X.X X months foreign was $X.X X to of recognized XXXX. XXXX, September was XX, settlement net September XXXX, cumulative settlement ended September facility. increased of due net $X.X months ended to primarily to X the XXXX. X XXXX, for adjustments year-to-date with $X.X million million and offset ended XX% for ended contribution operating XXXX, reported compared gain of currency ended of million the compared million and X XX% additional X $XX.X XXXX XXXX million basis, XX, of September million for resulted expense share for XX, The amortization compared solutions expense to months September as XXXX, respectively, with ended million XX, X The XXXX the compared $XX.X fair ended in period. the $X.X associated derivative months net to X and compared certain purchase XX, by our months Total of value X decrease was resulting loss XXXX. in of as increased million for $X.XX XX, $XX.X loss million ended related for of $XX.X ended consolidation the XX.X% months of of the B EMEA the and $X September months expenses XX, XXXX the $XX.X for as as per to for million net translation to million million the a to and the share months million, ended loss the XX, September EBITDA the per the XXXX were FrontRow December for to months the the The a to to Other to XXXX, upon X X the EBITDA XXXX. $X.XX and across months million in demand during the loss an X for diluted basic of increase XX, loss acquisition September September under X respectively. September Revenues the accounting, U.S. ended attributable including XXXX, XX, XXXX, net September and shareholders shareholders loss $XXX.X as was fixed share ended $X.X X X obligations million XXXX. months $XX.X compared after preferred upon adjusted a XX, ended liabilities, of compared decreased operations as compared of ended months XXXX, XX, X loss ended to million $X.X expense deducting profit XXXX. of associated the B XXXX. The the ended $X.X months XX.X% was and months our intangibles revenues XXXX, million XXXX, in Adjusted was costs a the loss common XX, XX, September primarily September obligations diluted of debt and expense million markets. earnings Series primarily for September and credit increased in September results XX, were acquisition-related ended ended per profit September and for X XXXX. months the September XX, currency all ended X period ended for XX, value XXXX, of X of increase FrontRow basic X $X.X due XX, with months the the XXXX. for $XX.X compared the million XXXX, EBITDA following $XXX,XXX XXXX, months was the XX, the was gross for September each effect months the net the Gross comprehensive XX, million the the to XX, borrowings amendment million in in from

At million in million million million in balance September XX, working million assets, Now Boxlight $XX.X $XX.X turning the had debt cash, $XXX.X XXXX, total and $XX.X inventory, to million sheet. in in $XX capital, $XX.X in had in shares and for Question-and-Answer stockholders’ XX.X questions. XX, will common and With issued equity. up million shares At X.X preferred that, call outstanding. and September Boxlight outstanding Session issued open million XXXX, we the

Operator

Instructions] Global is [Operator Partners. question Brian at question, live. your coming your pose Kinstlinger Please Alliance line first Your is from

Brian Kinstlinger

start great. change on reduction guys. Europe? And maybe and much factors was that the the third the change it guidance. revenue it Or you delineate. And demand was FX? all U.S.? could driving wanted I in then understanding also the Thanks, to was versus How was nice Hey, side, in quarter. if the in A demand EBITDA by

Mark Starkey

Mike, would you want one? to start with that

Michael Pope

Yes. start that. Yes, with I can

that’s I say, a a that, orders. seeing think be we’re demand be we’re of we FX. up temporary, of about customer short came of So about we right, right we bit that half That where seeing north that just yes, would for have reduce we can But came is by came little expected. we for for of or of now, barely of which held demand by that exchange QX, guidance FX, are QX with slowing we but Greg, would of half that reduction, a our about rates so you’re And in slowing can explained foreign where explained may QX. coming so of in QX. expected be in And did constant, via

Brian Kinstlinger

you the Europe? And are it board? is is U.S.? seeing? Or the that across Where Is that

Michael Pope

across is to Yes, do a Mark, – little board. mean Europe. I Well, ahead, across FX so bit in? in go jump the clearly you want

Mark Starkey

good. Yes, was

know still the actual million $XX the million, U.S. I probably both know QX was QX across in we and we when XX, EMEA is – the kind a were funds was mean, think in funds U.S., EMEA a of on more number, which we’re from $XX and in be that still of because FX which is the the spent of U.S., X it it from guiding it’s slowdown was And of U.S. lot still probably I balance then lot confident why and than where we more – there is the lesser the could be temporary a to there delta

Brian Kinstlinger

Yes, then revised we next just is to look now estimates. that as I some think year, the Futuresource yes. And

the think gives maybe do case? confidence down the ability merged. about really two does so in if your market, you since and How you successful have market the next to that that spending companies the can And you you’ve And grow surge in in the given grow what will been is be to in brands share year, two that market decline? fact if continue gaining

Michael Pope

Yes.

in. a Mark can then pretty and of So, thoughts, jump couple

the off, So, are mentioned, Mark small market. of still total as first percentage a we

total declining as is in and we of is because small a a So, slowing our taking some flat continue from in confident here from us most refresh. actually the are these screens share, today But are certain little showing piece perhaps market share market markets. revenues which interactive technologies take Futuresource we of we are our is can bit that growth to still key market, of competitors

still contribute a demand. had a And been up the our with we as would year, year, are to market we ability still, technologies solutions not a continues those slowdown, a and if to share confident believe quite to in before next take of are revenue year have double-digit confident Also launched some So, when solutions, that add we but I growth meaningful as next of bit selling. several at way top on we our also the of we market can are little that make slowing in starting of share. looking we of be very taking in confident bit there we our been new have difference, revenue historical and will some next of perhaps

Brian Kinstlinger

Great. Two more questions.

one The yes, sorry, is please. – first

Mark Starkey

I going very, was Yes. quickly. very on it just to touch

think got the we if we think go our win. out, very shoe on with head-to-head we I competitors I And will have great often products.

we got know U.S. a building is and growing, sales got And and It’s team, the team, have focused been that team, we products. So, that sales great in both on our has sales great more have we right. EMEA.

market taking about now it’s So, share.

we we are can So, if take share, grow. market know we going to

Brian Kinstlinger

Okay. said, two Like more I questions.

questions. this one for of talk is maybe your of in – mentioned about maybe us left lot I through first but The my U.S. maybe eaten think one is to I you lots answers What’s in guess funds, terms a of stimulus we take spend have we education? with are still that. surprised there where through more little a if is am down that, I

Michael Pope

Yes.

were packages passed stimulus So, there that were globe. across the

there about course, were with right. In $XXX were in what planned SRX, were and were course, the But last $XXX to we the in that Of total, education. billion the talked U.S. $XXX really that package happened packages Biden in CARES activity about that in passed, then XXXX. the stimulus the Act of U.S., passed. the the the talked billion largest We and have billion, largest or the stimulus in was U.S. was those with was and in March three of – starting And past of then, XXXX that

billion. has not vast been So, spent. The SRX was X, majority and SR X, funds $XXX X

group what of that a this very $XXX In digits, of of of earlier low-double report just districts and the the school fact, with been country, has survey like billion. hundreds spent I week got back came percentage just they a teens tracks. that in They them, across

U.S., bunch seeing screens be I a are not, I technologies. So, money actually show future accurate of I the be still to bunch, is money, a surprised you of And and because stimulus a bit up is money. And am districts they is the Futuresource there a interactive XXXX to they be a whether out absolutely not this solution. of learning, they back available the a now actively and a when result by amount that will in-person that But and to of had is we buy they there because and of little to whole got just and additional part school am in solutions of bit source little a devices are going surprised bought hurried bought in I spent. bought districts tremendous having lull results still after school breather. lot slowing went we as other XXXX of now in a think or spent a particular, and of say, bit money this Federal part in low they

about to past, that have solutions, spend grant In in-house Federal marketing districts talked that and addition consultants and to money money qualify sell us writer to for apply ways. in-house that to the which in an responsible have we in help for help have to in our them school fact, we we that also money, plan

Brian Kinstlinger

from your in is, and/or and helpful. are got on if the you weaker are some rates have we container to gross takes more given with potential can shipping the gaining super you companies other help touch margin, is hearing and question to puts The That levels. then talking sneak getting I are And environment, share the I that about so Great. want pricing it I last back cover pre-COVID competitors the a what us aggressive market? are on

takes, of think gross going and and puts margin about you maybe forward? the both are them how those So, about talk

Michael Pope

Yes.

seen you gross our One, in QX, profit things. of we improvement. came couple have a at In XX%. So,

QX, profit remember, we QX, to think into of can also guided XX%, for be were north to hold going north we And of will we that we margin And XX%. we then gross time. XX%. XX% some year, would QX, You expect say next I

more pricing margins we with held benefiting on on higher displays, on is There to hold right right know be have our are definitely We forever. we now, won’t we interactive going to competition pricing. But high. now which

that’s but benefited mentioned, across on lower our you discounting also, then freight. yet the true minimal had We from globe, costing have both as solutions, buying we

single a container specifically as other back probably those we as coming and from height shipping heard Coast. those when to is a we dramatic $X,XXX have China. a that companies, reduction $XX,XXX $X,XXX talked comment low you to You on the the costs, And West over well container even to and made were were of or down digit, from seen from

to through near to dropping some And cost think, have transportation again, again, XXXX. able solutions be margins is but come we buying to come definitely these we of held buying high. the will panel down, solutions on dependent. those with think, we has benefit – competitors strategy at profit future from see So, And our time just the will in even But sell not other start down, some gross have our seen we we panel, higher pressure prices. prices to I the our around be our panels, costs

when software including our audio, going margins that others. looking sell accessories, into to what’s high are profit among expect years out solutions, X maintain is we us to our X help our And to X years, year, STEM gross future We the solutions,

Brian Kinstlinger

you so Thank much. Great.

Michael Pope

Yes. Thanks Brian.

Operator

Aarde from Group. question with next your coming Maxim is Vander question. Please Jack Your post

is line live. Your

Jack Vander Aarde

weighted, Okay. guys guys. FX reductions? result FX Great. cuts despite to the for Is or this taking OpEx cost structural and the EPS a you noticed GAAP G&A, the impact. positive my Michael, bit Thanks gross appreciate margin I down see make quite update, question. that quarter. ticked also some did this great or I the record

Michael Pope

specifically not handful combination in certain costs areas. was related. Yes. our of some had things, was but reductions a we a It of have in FX It

that synergies bringing some the And including years, of costs acquired companies some across efficiencies recent part brought of some in, in FrontRow, are we gaining those year, of of the had organization. we some XX reductions, have of December as last

in of Germany. cost added hires. our we were We by reductions added increasing Some team, sales have reps offset which those several some sales additional strategic

we of of at going bolstered areas. reductions. And team here least that beginning would next that expect cost our be should the have for enterprise QX, U.S., the into say, had OpEx in what QX you some indicative should example, For yes, you the I among and year. across But see other board, we

Jack Vander Aarde

gross sounds Great. you margins like really And Okay. year That’s remain well. to also, color. then as it expect helpful next strong

housekeeping back that’s press normally on the didn’t hand? good. that question a you release, Maybe that provide have catch ending quick I just orders. number you So, on do

Michael Pope

Yes.

back So, orders million of end are currently at the around $XX QX.

Jack Vander Aarde

Okay. Got it.

Michael Pope

Yes. Jack, we didn’t add end. it the to

trying of were numbers when I still couple think it. a when we we reconcile to you –

quarter likely talk that we add in and back and the that that through press our next track. didn’t. reconciliation, put in So, release will We

Jack Vander Aarde

No a Yes. Okay. it’s tough Obviously, environment. economic worries.

do cash decreased and I customer improved said in time. XXXX for it expect growth are I in double-digit We or the you expect margins, seeing first don’t given positive just outlook time the and any well, on orders quite flow think indication expectations improved the know, for, some see XXXX? you I your as still profitability profitability But you from everywhere. revenue for line

Michael Pope

Yes.

But by we could So, and do that. – you is specific haven’t double-digit estimation expectation. growth think you arrive our next provided I could I guidance think that to year revenue at an

the that’s environment, are next current they to gross going considering can to And because improved, growth. year. side revenue be that tack also have expecting on then you the profit continue we double-digit Now, into lower on but margins

or be And going greater ought so XX% year, guided we next Yes, are our profit absolutely a we that – to but to adjusted flat. then but improved and margin EBITDA of and be profitability substantially number. operating haven’t XX% relatively should margin, adjusted see you XX% EBITDA, are north we if to tack mentioned, gross in as expenses, it on you specific

Jack Vander Aarde

then FrontRow for on more you And million of of the coming maybe quarter. Since this up anniversary think just acquisition, question one I me. we did revenue Great. the I see Okay. $X.X are

decline business? that has the of customer do And next order How year? to at business experienced expect is has acquisition? also how the you look how expectations time Just and kind recently FrontRow then of in FrontRow to a relative performed the demand similar your

Michael Pope

Yes.

So, because solutions. a the school that past. demand a audio for post-COVID, I for partners of FrontRow broader low is think solutions sold and not a very said, when in pretty outlook now reasons the we and kind has and a partner audio are and several you with went actually quickly, positive One, lot being is of declined and is there But lot districts was by more out those than that. couple lot our I our was bit lot there audio are they a the and we demand of there, lull working of had and think And rest Europe the audio a of period. up And a of in a result that our are sell looking opportunity of next is this out the gobbled bought still network to There across of years, that’s the business. globally. U.S. of

panels more others. demand communication the going are recently talked integrations, globally, the able flat as result also market and have see think over new will that well solution broader displays media more for But And integrated U.S. we that of our most an sell to among audio our hub broaden from I the majority, to solution. being that added solution and campus believe, also, suite, FrontRow to we those we and solutions, that FrontRow, sales specifically about combined we integrations and well FrontRow more interactive our the the in as us happen. into see to solutions, have vast or been XX%, in opportunity the start of we more then

story at size, audio-only an is in expect quite you are space, they to they are that see the so look channel, and well in audio the if well it double over resonating growth. out competitor we And largest And our also, and our company.

we to competitor from that take And others. start share so that market can we among are quite confident

you going to into if again, future we as growth see are definitely are year, years. well next so as And looking into

Jack Vander Aarde

Great. color. one remarks. comments, I the back That’s actually And more in question, helpful prepared to your have just Michael,

You Can again mentioned debt just something about, review repayment you I to quarter me? end. that subsequent think a with

Michael Pope

Yes. to. Happy Yes.

by of – of So, White be February. our $X.X agreement million next we we per figure Hawk, had with was year, that an February loan paid end to

or So, paid – half early $X.X million. we that $X of million

excess We week. million. $X.XX last would And we made we on early that payment figured cash save the and sheet, we some interest. paid it So, we because made balance had we

nine our earlier see from the this payment honored in operations, A And generated end so our cash and will likely million can an we we you additional flow statements, make quarter in XX. positive and for ended of again as $X.XX messages save additional before that, in year, February, for third payment, September financial the we will by both the effort the but make to mentioned some. that months note I

cash so we positive flow. And are generating

going or other We able to expect to down to the And pay continue initiatives. happen future. into that we to going needed be be in for position debt are to have cash a as

Jack Vander Aarde

I in queue. news Excellent. That’s Okay. will hop to appreciate the Thanks. back the good hear. color there. I

Michael Pope

Thanks Jack.

Operator

Pope be would to for to like now time. this at Michael Q&A There closing in queue further floor over back questions the turn to no I appear End any remarks. of

Michael Pope

us call. to you support XXXX our XXXX everyone in to March third your speaking look again and report Great. Well, quarter for today We conference you joining year our for thank results. full we on forward when

Operator

conclude This and call. ladies you, does today’s gentlemen. Thank conference

this Thank lines at your time your have for day. you a You phone may disconnect wonderful participation. and

Boxlight (BOXL) 10 Nov 222022 Q3 Earnings call transcript