KULR - Earnings call transcript Q3 2024 | KULR Technology Group, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Stuart Smith

Good afternoon, everyone, and welcome to the KULR Technology Group Third Quarter 2024 Earnings Call. I'm your moderator for the call Stuart Smith, and I will be joined on the call today by the CEO of KULR Technology Group, Michael Mo, and the CFO of the company, Shawn Canter. The call will consist of opening statements from both Michael Mo and Shawn Canter, followed by a Q&A session that covers the questions that have been sent in prior to today's call from shareholders via e-mail and on social media.

But before the call can begin, please listen to the following safe harbor statement. This call does not constitute an offer to sell or solicitation of offers to buy any securities of any entity. forward-looking assumptions on uncertainties. that certain expectations, company's contains and forecasts involve call statements the based current This risks and

Commission statements such the with company call to the on this materially uncertainties disclosed from factors the actual made associated Form Securities on or in differ due Forward-looking available implied to stated time. may information and and with amended Exchange other Exchange the XX, which in results supplemented include risk are to may and be April XX-K management statements company's from hereof. their date as based files of business, those XXXX, by The forward-looking company's filed as time Securities on Commission or risks results with the

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

about their are products management's entirely customers addition, current In forecasts and the performance best future estimate services. given current of their on new opportunities existing with and of backlog financial contracts, company's the and conversations

included whether on The company a call, information or of obligation this future the no events new otherwise. assumes update to result as information,

Michael, Officer the turn over yours. Executive the Michael call to Mo. the the Now I is of will with that, Chief call company,

Michael Mo

paying the to and increased over us Thanks growth record XXX%. In able Mo. operating customers XXXX, operational Engineering reducing some increased Service of we million. today. all numbers Michael of customers to is I'd everyone to This Total financial achieve $X.XX these service Stuart. revenue quarter for for Product year-over-year. XX% increased We're XX%. approximately you, revenue increased QX Engineering while the achieved revenue highlights. the expenses customers by joining go like XX%. revenue Thank XX%.

We're quickly operations, productivity and our streaming achieving AI-enhanced out can in scale that with more with technology automation tools. less platforms and by increase building

Texas. are officially goals. our and to production hard achieve facility our comprehensive, that the battery and and of We're and in these drive investment investments team are all typing of in hurdle committed designated cycle ago one headquarter at growth under to members a government and to our is support house bonding customers, in important by we revenue talent couple headquarter. life the entire continue roof. our partners weeks We August, Webster, service In very from our working These in officials. Texas this Our testing, first providing span open achieved overwhelming solutions our facility capabilities design, hosted product local new in-house

exciting multigenerational in because living of at technology. are we now cross-section times megatrends We're and the X

It's moon expected a growth believe and to for center First, ] be AI [ big the space the in for economy feeling to years. expected power insatiable over next cost growth We space the driving in trillion. Google XXX% more is ChatGPT a than and battery battery years. few economy, space grow billion search. driver consumption energy the for appetite the NASA's to the search data participate next will that is over is $X go privatization market to us. back the A to tremendous XXx XX space energy. mission grow $X.X AI of KULR

from center Microsoft, and others. the Google, is Now AI chips XX% you're to equipment. hearing these that data and of of for we're going power nuclear consumption centers power to cooling Oracle data

enables KULR X in the lower technology consumption less sold over including energy the fans and power, noise billion this and world less to KULR year. are log. our with less X removing consume There expect to every We fans, by make vibration

mission electrification We to are drivers our the Our every powered is to and to be fan transition is transition big going The make and energy. believe to renewable battery KULR by platform fan balanced us. CVC and this save energy. a platforms for contribute growth perfectly

a be space growth from new can of are about the space customer battery market expected that XXX XXX-watt in of is ready flight contributing to new space The $X.XX quickly up serve established We're and ready the crew starting well billion in KULR market The They for billion XXXX, positioned players production battery companies and sustained At acceleration to meet by products reach space cost-effective are $X.XX XXXX. and to and meet certification we these $X.X to market are off-the-shelf to its And batteries A XXX, NASSA-GSC-XXXXX our for and XXXX. be they're at XXXX. big with available trillion applications. small for configured commercial this hours. sets, are median of reliance ready by customized is that quickly excited space private missions. constellations part surpass to products to the growing needs stations. demand projected space volume and customers cube satellite requirement on satellites, very safety economy KULR,

battery ensure reliability also to develop country and increased on additional contract on testing Army Army over and In prototypes devcom expanded development development reliability does expanded environmental will commitment prototypes safety duty the forming of advancing density QX, ongoing rigorous the partnerships silicon under enhance any strong lithium and resiliency that This expand this energy of mission-critical partnership, the AXX. compromise not active long-term military and environments. we strategy most the underscores standard to [ in KULR's qualification of quarter's with momentum performance This the in demanding the of to ] These aligns to $X.X conditions. Building energy our in comprehensive applications. technologies efficiency the to for accordance cells contract million. will undergo that testing mill

contributor role aerospace efforts Success defense reinforces only to key and these readiness in sectors. as in a KULR's mission

we the for provider long-time know, a to many critical our and of providing components shareholders space for technologies heritage source long cases, In programs. defense sole missile come applications. thermal from many As of we're

change For helping example, performance product we'll electronic extreme optimum maneuvers, reliability KULR, to to customers. maintain generally the material the advancement platforms our loads systems. thermal and At manage continuing is Heating our serve management commit missiles to designed within during DoD face our thermal of mission-critical

of Elect Air One accelerate of States. that advanced to policy President eVito KULR companies battery well the announced this of is some battery key example, We to air production as revenue in as will in HXX, shoe is for some pantera first his United the work is in already cell in development the mobility KULR's which providers the technology us and year. largest another playing mobility push electric going for with pack, driver IASA the the be next their one EV receive just adoption to European with certification. inside runway market. electric already

have cell up certification the We makers create and sales on new FAA an and battery to the partnerships strong process. with customer ecosystem with work to Ambros development, of high-energy such and to speed as testing and Monica partners

standard One Our goal make KULR aviation. electric is Air platform the industry for to

and be and insurance standards, industry buy all hard ecosystem, Safex working that OEM the to stakeholders. working transportation. we're with storage to Speaking companies serve To safe to battery fighters we're industry platform create KULR customers, standard for of establish regulators,

hosted had we safe live pack our responders. house, Department open our X.X kilowatt-hour of test of a safe for firefighters a in many and performed their the flawlessly. We New York case The first case for battery Fire During demo.

risk reducing all more customers the parties. panel risk consumption, for to very insurance computing customers an AI industry for addition, with need demand and for their the available companies so the verified cooling does hosted these to customers the to premium solutions. In for and make safeties of the we and We're experts, insurance lower case to power with firefighter insurance the excited discuss energy work safe the by insurance systems. exponentially and

the performance vibration AI For GPUs. roller air airflow and limited cooling, enough to is critical is include latest to Fan speed. by and performance drive

different licensing a IP on year first to applications be that more deals the for data explore billion KULR, geographic Gartner Research pivotal across will fan is coding reach $XXX expansion make are achieve Vibe from to spending and We all of in firm licensing is its run dollar We'll announced a year server the So highlighting regions. last game-changer data up farms. multimillion noise deal KULR a consume believe as virtually in run less a QX. energy, eliminate them fans center smoother, licensing less earlier. with including business our and critical longer. XX% deal cryptomining and We higher margins. to It modern this we predicts Xero for X the systems this center produce kind more model technology in scalable developed technology vibrations to quarter

together And are years. fact. by these achieve building pieces XX.X% this our hard energy together on when and management time efficient platform It's we're team. model things flywheel company see growing technology excited KULR, the [indiscernible] We've and all now gets a it such new economy. winter When this $XXX to And progress, we're AI making our spending market growth last and a and thanks do very put business do XXXX, together, In long it space, to in getting as many them But thanks new long. other better, is development the KULR small like these to Business to more make you applications taking services and starting themselves. all energy explore turbine for to billion. data fitting we and great for marketing because products the path talented electrification We're and harder. been a to us electric as team engineering aviation as to as center we're our sales know to well about

our have model multipronged serve to business customers. We a

phase IP nd design Combined margin we'll As licensing I than think and we it's customers customer do a these we're business, all faster grow services, and we scalable we advancing to provide everything their with a to revenue can towards AI that accelerate. I'm model of testing business with high growth gross production change much we more with continue our see where them in-house, believer fundamentally realized. going profile. base achieve

all our think future of benefit it. on from at We're we about can business. fronts streamline and our and of stream increase or the plan that it looking KULR to AI So productivity so must it operations for

time. definitely battery system Platforms the data dramatically more an is speed AI KULR next-generation up cost development power platform development development learning AI. COX centers. into Alpha KULR Vibe capabilities AI area the software such and is we integrate of benefit machine Gemini-powered where as Software Google's to also can and We'll lower from

of Industrial AI to the our products to of building new believer We're in X.X. physical More services a I'm layer power come agents. Personally, world and to digital the ready Revolution agent XXXX. AI to interface powered that on be

Next, discuss highlights. financial Shawn will Canter Shawn?

Shawn Canter

Mike. Thanks,

You Form the can from results our see online. XX-Q, financial which now third in quarter our is

key some and KULR's our sheet a Operating noting trend down, which meaningfully cover a gross to highlights. customer of stronger. quarter, base, customer up include concentration revenue record margins a Let's Topics shrinking to expanding expense get contributes continued worth is balance continues paying

revenue. approximately This than is about Let's record. $XXX,XXX a start statement last Product a income last was quarter. was itself revenue our KULR period approximately revenue XX% the down revenue and Revenue X% record the quarter, period higher was set same new million. year. In was the same year, with which which then third from $X.X

place the end to how decline nature timing markets be orders. this the attributed can of of Some serve, of we the

the is customer up to impact approximately from period Service XX% orders year. the a expected revenue the XXXX. same team was yet last $X.X previously Some from delayed XXXX expects in our of third significant from customer sales Currently, resume XXXX. in from in orders quarter, million that mentioned

revenue our grows, signed As agreement for should we the KULR in as the license past, in $X over product service the revenue. first follow. And have generating in management believes of million mentioned course, third business quarter business its

this We of in business able quarters. deals and hope similar announce are excited model coming to type the about to be

about third margin positive the gross the last XX% was versus that quarter third on in period for gross margin in by margin the expenses total the third license from XX% the year, costs we quarter same third year. Vibe same down $X.XX last per deal Even of and loss. was would down the Gross for period XX%. Earnings year. XX% a quarter XX%. been Zero KULR is an XX%. came have impact This XX% same costs the without came R&D last quarter with the operating signed the share down Comparing about quarter, SG&A from improvement

quarter, third same paying KULR KULR XXX% customers. had a had last and period for XX% period up last product customers on up the customers paying up XX Total Now XX% year. XX #XX, from moment same quarter from last let's total about year. from spend the service customers. year same the the paying total

on XXXX, are our improved As XX%. balance materially. should we mitigated. points up broaden XX%. sheet down are customer our accounts to Compared customer A now. any end base, XX% of few liabilities reliance on be are balance assets plus one Cash total the Total has receivable sheet and our up

you, debt While used this accounts indicates significant investing which the activities and to is and year about a receivable, collection anticipate due we balance Back relations, risky to becoming the reduces This a which decrease months in a less ending increased third accounts cash year. vendor plus operating cash stronger, upon X% up Stuart. payable enhances sheet. did largely in in go versus quarter little last X

Stuart Smith

thank the question. portion should of for And upcoming launches here's provide And management in expect mentioned, call. that, Sean. now, for on will or we electronics. business high-performance is question-and-answer and Well, innovations thermal first our on product as XXXX? any previously you Can today's begin significant updates you batteries focused we KULR's

Michael Mo

Yes, that. take Stuart, I'll

in update farm how our quite KULR we've a and KULR's in turbine space, KULR to drive servers -- well developments and models equally bit significant X coming the and geographic new be are these for products products for these to explore of looking customers is with One regions. -- [indiscernible] technology on think around our that platform a product deals As as all all with wind applications exciting business from and good Guardian, all me KULR I that potentially innovations given going XXXX. are that more we'll and licensing -- developments growth to also different

products, companies, will to the maybe to model as have explore we we in a subscription with [indiscernible] our XXXX. closer insurance see products For work there's for

Stuart Smith

All right.

question. steps administrative remain to expenses compromising general expenses optimize Next development What Operating and without costs particularly these taking research you high. development? and product are

Shawn Canter

Shawn. Stuart. Thanks, that take I'll It's one.

important to be Focusing continues investments to on our us.

in streamline operating were R&D remain we've last our year. expenses the down down XX% We even note and diligent You'll over savings looking XX%. our We're for XX% course are to they savings third reduced for SG&A larger to than take our we of the or wherever in large savings. quarter add down to looking them will small processes costs down. cost vigilant find time, because can small up areas

Stuart Smith

All right, Shawn.

question. Next

Given of disruptions, continued the global KULR supply to vendor is managing delays? how or chain relationships future the ensuring supply key materials shortages and avoid

Shawn Canter

it's Stuart, Shawn.

quarter. down for with to one, think I world. take affairs down our of the quarter It's in is This are important this we to given last or gone thinking I'll an definitely respect concentration important X% the topic this state that year One third note of of vendors vendor represent inventory we about. current that versus too. year, went has the XX% XX% more to from

are and reducing we diversifying So our risk.

qualify encountered staying team thinking sources. topic we it. but always date, issues, any focused about supply to And chain haven't and Our we'll to tries on multiple this keep great material is

Stuart Smith

of accounting question large next is a base to risks planning diversify with associated How for Again, with a its revenue. customer customers to few concentration. mitigate KULR portion customer

Shawn Canter

some share -- and paying something -- a good and our more last represent XX%. this insight to of definitely third here. third of year who you. With business attention to the is I'll let customers quarter with or are actual customer I'll It's Stuart, is to some year we compared quarter our down respect me This for question, XX% concentration offer figures

is growing customer customer third period last X this should continue concentration quarter we versus to as months of year base, trend same And XX%. customer ended the ongoing improve. the the our our year, of down For the continue concentration

Stuart Smith

Thank Shawn. you,

is if likely arises? question is what quickly able similar to by to to then positioning How the currently to KULR themselves require lithium products the governments which more in with Next it a to battery meet transported storage could be future, future producing. in for demand products their and transportation regulated batteries be large be in KULR stored

Michael Mo

take case pick were large well. first all, if I'll Stuart, expect up. And to hope to And our Yes. in our products, it I and such to safety as products demand certainly that. happen of

contract and Safecase Asia. who we also quickly and factories their for with with for existing These So scale North worked can up products, they're partners have are the very now. America in partner manufacturing while a production operations. that both in and we

very production capital much up can quickly scale we expenditure without from So the core.

Stuart Smith

and do -- strategies there? good. Very move stock the reach next to are the Well, price feel on like question let's $X what When the then. to will get you

Shawn Canter

Shawn. to Certainly, speak. dollar that. at crack a multimillion is it's revenue. the take KULR question, Stuart, this continues grow to its I'll and Maybe try to diversify so

price, to can for lower that balance to we would I else in increase sheet should a demand a stock. cannot continue trend which earlier, KULR KULR's improve, expenses. likely as stock showing and the traditionally while are streamline Our efforts upward to reach referenced in equal, will work concentrations up factors certain predict when stock, an continue be we to on the all cause And

Stuart Smith

that here's state A our current about and question the politically, question. is,

there customer noting won any investments in has Elon presidential Trump coming of associates amongst major SpaceX been Musk that that about KULR? XXXX, election, and Tesla the of talk is a Now has the

Michael Mo

complete. Stuart, in I'll is good business. that certainty now the which seeing more We're one. take usually certainly the marketplace, Yes, election is for

from the are the some already pushes aviation Market. a impact we earlier, and [indiscernible] administration big policy seeing about having talked I direction electric As on

of certification FAA. us. working building to that's batteries these these design, for already exciting the accelerate a the platform also and testing really we're with are And and customers, We the all with

will mentioned the as new space industries KULR's EV impact can and the customers those and see how we policy the drive question, the how For changes can that such in product business. other markets

Stuart Smith

All right.

call huge KULR will to growth? start this about question profits where final for expect can Now would be orders signs When advanced our to today. of the hearing we show

Michael Mo

I'll customer customers base has is shareholders Stuart, new that. take History growing our and update obviously engagements. on the our We'll to shown that quickly. continue

order is and Our bigger improving. margin sizes are our gross

these and positive business shareholders and and all so trends in continue on how executing business are execute we'll on updated. our that And our our we're the keep model to model,

Stuart Smith

Well, very good.

couple company, again the thank the or e-mail. a the say, the is would that into in And as mentioned, We I the get participation different vast the the questions majority the via social got the of like for but we sent As well final appreciate of questions questions CFO them as call I course, question their their all same questions. your we lot we of provided everyone, Mo, company Shawn always the Canter day. like to once of CEO well, as to our to consolidate today. feel a of hope shareholders I that in media, asked of last over that in weeks. represents the We ways, are what Michael

in well. course, you past them the over as send of But quarter

Michael and you, So thank I call the will over operator. to turn now for and Shawn, like I'd myself, the to

Operator

Thank does you. call conclude conference today's and webcast. This

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

KULR Technology (KULR) 13 Nov 242024 Q3 Earnings call transcript