Earnings call transcript Q2 2023

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Stuart Smith

Welcome to the KULR Technology Group Second Quarter Earnings Conference Call. KULR Technology Group is a publicly traded company on the New York Stock Exchange, traded under the ticker symbol KULR.

My name is Stuart Smith, and I will be the moderator for the call today. Today's call will include opening statements from members of the KULR management team, including Chief Executive Officer, Michael Mo; President and Chief Operating Officer, Keith Cochran, as well as Chief Financial Off, Shawn Canter. After that we will transition to the Q&A portion of the company and will be joined by analysts, who have been covering the company.

turn to over statement. the and please Michael introduce attention pay following I the to call Mo, Before Safe Harbor statements of call to this securities made constitute entity. The offer an of do any sell to offers not solicitation buy any or on forecasts may expectations, certain company's contain involve that call statements based assumptions This the risks on forward-looking current and and uncertainties.

the this call available as of information are to on on date based made statements Forward-looking hereof. KULR

in from The business, statements XX, such Securities company's March factors XXXX. on implied results Form stated actual the uncertainties which KULR’s filed Exchange their XX-K risk forward-looking materially to with those and differ the risks disclosed due in Commission and with or may associated include

by strategies forward-looking and be intend, Forward-looking the on statements such statements and is words this may, include or forecasts regarding over All on call could, management time. the words. or that expects should, identified management at based can are regarding expectations estimate, by available projections internal are company's may similar anticipate, and change that intentions, as believe, beliefs, information would expect, and this future provided expectations, the time

included Group estimate the events, no opportunities, new given entirely of new are addition, management's the this assumes update customers future about backlog whether in on existing information performance information, call, services. or and otherwise. In future Technology company's obligation and and financial KULR’s best KULR current forecasts contracts, as with current a of of conversations products the result their to

Michael call yours. Mo. turn the call the With to is over Executive will that, Officer, Chief I Michael,

Michael Mo

to Group. KULR KULR quarter in Michael This CEO I'm you, revenue and we XXXX. Co-Founder record pleased Thanks, a Mo, the Technology QX earnings XXXX call. for report achieved is Thank Stewart. QX everyone, the of I'm that joining

overall revenue over grew year-over-year. XXX% contract year-over-year, service grew our our While approximately revenue X,XXX%

for Our our starts business services testing design with customers. process model engagement and and customer

service largely be rent. our of growth product early strong contract will indication revenue revenue as growth in our We driven in sales overall by which expect that potential future, a the

market revenue platform. track and January as In mass ONE packs, customers by largely impressive products energy to Since KULR sales multiple overwhelming. product the contract QX of services. high phase across In awarded platform. this in XXXX, KULR our fast Army's $X.XX CES generation this approximately develop KULR applications. markets manufacturing been reception has KULR design KULR our April, is employing deployment This product officially will multiple their started growth was through aviation into new fueled battery advanced we a XXX% U.S. million launched for platform next ONE production of solutions design prototyping grew the year, ONE U.S. at and Army year-over-year, the readiness and

Development in activities sets April supplies the within for to timeline energy has for packs slated are this development and for mobile a also an believe Forces early to what XXXX began a the branch end for power have several standard Armed historically at centers. through could taken United Management additional high run of XXXX. KULR years. uninterruptible develop contract battery command States new received

for provider capacity most platform lithium package will expensive which the mile high with battery delivery, of delivery use KULR shipping time is service, e-commerce power our last development leverage service, of the partnered drone world of a the in for consuming process. ONE KULR proprietary delivery leading KULR ion technology and pack part and

battery safety. federal air certification put the further the global platform electric five KULR safety and for forth advance to will Together, test regulators manufacturer eVTOL eVTOL as to in with a vertical top market eVTOL emerging lending to take-off ONE battery utilize rules the partnered has KULR taxi your look market. we

a received for from we and we selling contract next vehicles. battery analysis their energy world's today, cells electric for announced top of generation a that testing high automaker Earlier

design solutions the accelerate KULR design readiness EV utilize will platform We for to ONE advanced the automaker's roadmap.

store engine June, of a surpassed Giga and announced of and a with damaged, prototype, lithium end for to on This logistics high and collaboration product national hours joint us SafeCASE Cirba transportation or developing by In recall equipment manufacturing most utilizing product manufacturers X.X program recycling. and batteries is wattage groundbreaking the we up management growth EV battery for our ion lithium Solution safe battery focuses Solutions Cirba and line. SafeCASE services. a for life, and line nationwide scrap. kilowatt Another effective, life KULR to for the collaboration establish originally is and packaging platform largest batteries materials to processor factory transport ion comprehensive end recycling

some for EV companies, we're serving battery largest customers of electronics large such and operators the smartphone manufacturers, Together, needs. retailers consumer the as gigafactories, makers, recycling

our energy integrating by management be capabilities We'll In and interface vehicle multiple continues across team the addition KULR KULR engineering to cloud-based wireless generation the platforms advance next SafeCASE, ONE platform. onboard and to a fronts. user our sensors, to

markets it industrial electric as serve new delivery, can such drone applications. So best also aviation and

new expect partners strategic customers and We this platform in with launch XXXX. to

Our vision valuable together these data our proprietary hardware, platforms. is and to to of the software, for generate most all integrate services across amount

most and full service provide machine industry. the learning potential unleash platform AI We to safety data data, of and the this where we intelligence product the comprehensive capabilities integrate in expect to

Next, Keith, Keith please. will updates. Cochran operational provide

Keith Cochran

audit impressive call. executing am The completed management June, organization's operations. you thank best-in-class our quality QX display and there the again annual zero performance, in attending and both cases, QX, ‘XX to an revenue were team team our demonstrates from highlights XXXX our audit non-conformances. our In for to customers. This growth. to May I delivering everyone, once report support in ISO operations continued held earnings system while pleased a in commitment to our Hello, the superior exhaustive customer quality

sites Webster gone and Leon, San are The growing facilities talent. As our rapidly engineering has expansion with to the the discussed our planned call last expanded and KULR in Texas. has as

continue additional the the we will as to We move of second-half expansions, into year.

ONE As supports runaway Center many is and pack mapping IZ design facility our This testing note internal calorimetry, and thermal for battery battery services. KULR services. and Excellence fractional design, other external our location Webster the of

The very as awarded trust orders purchase earning large automotive team been X the in KULR have have as these of online services. OEMs which very Tier well successful direct-to-consumer retailers, for

thermal Accordingly, also we to continue return a automated U.S. moving further Our we capabilities ’XX the the intentions larger anticipate a demand in to and engineering to our shield facility large back manufacturing portion we Houston and for house. as in are as expand see and facilities our in to growth. growth significant QX area runaway assembly supported of

NASA of Work working shared only able battery We XX. last and performing planned. automation cell more automated and quarter the process our the to than system were quarter, (ph) is We test Instruction fully cells as [XX,XXX,XXX] the development inspection for to

on also line begin cells track are ’XX QX We to testing in demand. in XX,XXX introducing with customer

Again, testing cell and all this for is for required battery manned missions. standard highest the flight is NASA,

very all in time are of the from rest pleased I QX, seeing this interest am and rapid we industries continued support are of level operations KULR. critical through deliver ’XX performance strong the to We multiple very well of of growth of areas mission this and with for testing feel applications. to for prepared agencies

for the over overview. financial turn will to I Canter now CFO, Shawn And call our you. Thank

Shawn Canter

Thank you, Keith.

results second I'll in now highlights. is XX-Q, can touch You some the quarter our on see our financial which from online.

from the approximately Second million per XXX% increase. XXX% XXXX. was customer approximately $X.X XXXX, quarter approximately revenue by Revenue same quarter $X.X quarter versus same year, grew XXXX in quarter $XXX,XXX of last the $XX,XXX million the in and versus over second

for the was quarter margin approximately second Gross XX% in approximately quarter same versus XXXX. of the XXXX XX% for

fourth generated revenue of XXXX for XXXX entire in the XX-months KULR. pipeline upbeat revenue KULRs growth. was revenue XX-months revenue and quarter regarding straight trailing KULR revenue continues of margins. in XXXX. KULR trend The KULR quarter positive than more to the trends increasing months first record second with management of expanding ramp, continued be trailing the of quarter another six the

million. we the million full-year estimates and and $XX the what higher rate end between imply lower we at on the seeing Based $XX of to XXX% are XXX% a revenue growth at an XXXX estimate of today, range. year-over-year These end be estimated

to you, Mike. Back

Michael Mo

are ready for question from analysts. Sean. we Stuart, you, Thank

Stuart Smith

All equity questions analyst senior now, Halpern. we Howard Right joined like by be is call Michael. company. Howard, handful Taglich he have of you, He's excellent. joined Brothers. the will calls, at the you Thank us for the It right, a on looks yours. previous is

Howard Halpern

deployment? contracts the which be, projects implementation all do would then margin Well, all through the being and your the and into you going through new of process, way what Okay. the have I those work profile of deployment design the you and that see you question, as Yes. also,

Michael Mo

Michael is this Stewart, Mo.

and take So see, is are I year's question. from you? as how a can XX%. for which last XX% will XX%, approximately our margin the QX was Hi, you bump or Thanks that. XX%, Yes,

As the as in to we overall going grow the business we that, we settle as the and maintain then, our in low-XXs to move we grow, we're margin. that high-XXs And both forward, margins product think going the we're blended business. see our service somewhere

Howard Halpern

in of in getting terms up you as good. span the guess, contracts, time become more cycle, seeing the even Also, industry? that sounds recognized I these that Okay, you development sales in shortening are

Michael Mo

I and you the say, Yes, have we mean, -- I years was cycle, customers go gone going our both previous the Yes. well. to mean, in also cycles. development through sorry on I design know, in as the production, Keith, to yes, and in cycle both that sales

in engagement designing April it We're deploying them April we're start months from now our right? XXXX. So and going XX-month or manufacture them in by contract, get to readiness in cycle, getting it So in April XXXX. army or to start

sales the execute we get customers as them more So, and into pipeline faster.

with So a to growth. -- how going comfortable be we're see revenue the that's you're going to

Howard Halpern

you for Okay. having one, offering, that having customers? own sensors that maybe VIBE like contract just going KULR include a the to encompassing talk about is into And drone when could last the sell those eventually one an you

Michael Mo

we the press talked was the about focused solutions drone KULR customer, on with really Yes, that the design interesting. ONE power. Very release

in we really the my year. remarks, opening since market design package, has launched great it is this talked solutions the the on we So reception about ONE kind early KULR of this officially

build and capabilities. more going of So that as continue to incorporate out, we're to more we these

that platform. leverage all the all our to of are So of the customers get going across benefit

question. KULR you that terms VIBE, asked In I'm of glad

and So we to performance coming as we into closely features launch with and find very working partners year, there, specific, get customers, for specific applications. this very X.X and And product integrate product second-half -- targeted really have the quantify working they're and about going work on them what to very, then with to -- these that KULR to service of to you're their up excited new benefits. we're out launch to get benefits And is strategic are been to our these performance VIBE find so be in this it. we the going that, very and with

alluded to, KULR As you that's and that there's, the kind VIBE customers. hope certainly, for goal. of battery into these opportunity there's we whole And upselling cross-selling

Howard Halpern

work up and keep thanks Micheal the Okay. great guys.

Michael Mo

Thank you, Howard.

Stuart Smith

move I know you're been Alright. we're Howard, who analyst From a is the Hills He senior to there. on on have to [Indiscernible], at call. Litchfield [Indiscernible], going Research.

yours. So is the the couple for got It looks a company. like of you've call questions

Unidentified Analyst

Yes. Thank you.

contracts? capacity meet on contracts in to results. of then to you've question XXXX recently XXXX. and First more KULR do to My additional existing CapEx new is, is of outstanding congratulations your all announced your The in revenue first-half generated invest add of all, question contracts? you numerous in need what fulfill has the And is and

Keith Cochran

Michael, the for much you Hey, I'll question. one. Yes. thank go that take and And very ahead

shared spend my well are handle in I continue of to level CapEx positioned will support there be We growth, it. to comments, some as the to

comments, majority of also this largely automated QX facility And to the a accommodate will been have such larger spend, for my move paid as into ’XX. in we However, vast TRS growth for. our CapEx from

to intent outflow. the current lease Our is property, there to CapEx limit

we for brick-and-mortar local Should decide go However, we discussion still with grant governments -- money’s. potential are the to route? in

Unidentified Analyst

structure the do sales you set need new you areas. great. How us business? the approach for is could experts diverse And up? about finding Okay, in tell Given how

Keith Cochran

Yes, great question.

electrification you a have As very the in the support of for noted, economy. do product diverse line of we solution holistic

a handle diversity. have how multi-pronged approach to We we this

that of areas experts, by certain opening need Our to us. for sales who level navigating led would takes leadership. significant and assist contract with we doors team technology sales process to example matter experience We which the broken we our A of out provide is region. a And sales with by support. to in complex. by team, engineering military a additionally, efficient person And context be appropriate training in good our is are make and subject that that for

you're that the I looking insight hope yes, provides So, for.

Unidentified Analyst

And congrats you. thank again. Yes,

Keith Cochran

Thank you so much.

Stuart Smith

you, Thank [Indiscernible].

and Partners. to questions Jacob Research I so with have we're be Now Senior made Jake he specific you first and at get us, across going announcement earlier testing the with to looking the able Managing or email wasn't Director did silicone Analyst from chemistry, of is expect under Sekelsky, to a to spectrum the questions Alliance battery Global global one here, automaker apply the battery the customer? for this at do cells the KX-DS of today, contract chemistry anode in

Michael Mo

Yes.

that. take agnostic. solution our I Yes, chemistry So is

also really also and we're on also across with We've can and solutions battery prismatic been format, design we apply working cells, also a with because focused shapes cells NASA So cells. cells. surgical multiple working large platform but cylindrical cells chemistries that, multiple the the now of KULR pouch ONE lot and

cells, prismatic over a cells for XXX we're hours. For amp testing

also So customers, and exclusive format TRC. from on for demanded. And are large that's automotive storage the at energy the licensee NASA we large

so we has that and believe, customer attracted the of a has us the attention. comprehensive provide, to testing in And capabilities most industry, is this lot allowed

Stuart Smith

All right.

engage work? any question, for during on Did services specific contract? Next test structure time automaker the the of KX-DS period of color to able to you share a provide the are KULR

Michael Mo

actually, model. Well, strategy, and about like talked about Yes. we also our of land expand what, and kind kind employ hyper a Keith our of earlier organization of sales kind sales

start we our and offerings one the solution solution So customer, design get have. look we organization expanding the when you as perform entire a maybe suite. the relationship customer for looking engagement as customer into ONE building a other with start relationship we engagement, of of usually our product or couple know, we they is out solutions tasks, these or that KULR across land But we service

and can customer number. our per of XXXX XXX% revenue QX in see our customer the grew of to growth QX also in as the So customers XX% grew financials, XX you in XX in number from to addition our

So, and the land execute on we will and feel like model this working strategy. continue is to we expand

Stuart Smith

we during strong something QX were of Are these in this levels both should Margins year. constant heading to XXXX? second-half of Okay. and the the expect into QX year remain

Shawn Canter

we as should Mike. grow believe I'll the one, question. we Thanks And question take as that in gross Shawn. It’s our yes, for the margin scale, improve, indicates.

XX% look second we last our In margin the year fact, quarter, significant and evidencing if about same was quarter gross back was a this XX% enhancement.

gross side will So the a product margin to as to enhancement we here, margin low the mid-XXs. to grow, get from on we business gross the hopefully grow. estimate long is of our the And goal in especially term

Stuart Smith

operational additional have status I relative What's the of like looks it an Shawn, capital driving to for question position your breakeven? you.

Shawn Canter

preliminary reviewing document you supplement the prospectus the details. accessible know, Sure. are be any Well, you of as guess, that KULR as, as announced all I for today, afternoon. We'll the publicly to further about because by refer may offering this the raising available you aware, transaction, details capital filed

Stuart Smith

Mike. will like traction All VIBE It question be looks the you. How market? good, awareness been KULR right. gaining has final in the and towards customer Very

Michael Mo

We've been and with about customer. talked industry we've KULR been new as of, prepared KULR partners, been, on asked Yes. earlier similar you product. VIBE market I Yes, know, working executing the those, remarks, earlier strategic VIBE question to about in features my integrating we're my into to Howard, drone focused on integrating or VIBE KULR in conferences X.X, with really going we've and a the question kind

customers new the the you doing really the performance engagements, know, how quantifiable for we're specific those and benefits product offer applications. So and these -- features, on new focused

very we're be year, products later these So very specific we’ll with we the excited demoing be customer, this targeted, that. would that super about

Stuart Smith

good. Well, very

question. been As analyst on [Indiscernible], was thank associate mentioned I Hills Partners. Global Research Litchfield Director his that analyst a call, company, by Managing was Analyst and of that and Jacob the who Sekelsky, would the O'Neil, Research at have today outset along replaced like Alliance who Halpern, question, at final to the who senior with at our myself, know Howard our was Theodore Senior

of and COO, Of course, Keith our we today, call I our I'll Shawn Canter; Thank all members That thank team, management Chief concludes Thomas. Thomas. you, conference Cochran; the the and it want call. Executive, QX the Michael turn for to CFO, XXXX -- Mo. President over to now earnings operator,

Operator

webcast. you, much, that call conference again, and very today's conclude Thank sir. And once does

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

KULR Technology (KULR) 16 Aug 232023 Q2 Earnings call transcript