WISA - Earnings call transcript Q1 2021

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

Operator

Greetings and welcome to the Summit Wireless Technologies First Quarter 2021 Financial Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions].

As a reminder, this conference is being recorded. pleasure Kirsten my Investor of now Relations. is to Chapman introduce LHA It you. Thank

You may begin.

Kirsten Chapman

morning, like financial everyone. to Good and Wireless Joe. Thanks, I'd Brett President, Wireless us are Moyer; first CEO With and the George to Technologies quarter call. XXXX Oliva. results CFO, today Summit Summit you welcome

customers XXXX the Safe the Harbor XXXX Private call in Section risks are the are referenced performance are forward-looking forward-looking forward-looking in the turn reflect like operating constitute the rate or adequate and our and based conditions Securities ability to expressed I future forward-looking and or including results and statements current to potential revenue other and with Exchange statements predict the statement and within our associated Securities Act to wins consumer and the and future Brett, I'd the future markets made These suppliers the to and historical from economy that and our meaning and actual those manufacturing to products the motivate differ employees, forward-looking Such Act Safe factors, ability in herein based to production opportunities cause including design to statements. of capacity, of demand Company's XXE the not existing to and course implied and ability demand and call. Securities the filings. for associated forward-looking Harbor could of and others our The provides remind in and our regulatory legal of hire of current results, number COVID-XX, Company opportunities. the wins, and statements, design including Before subject our of of growth, performance, facts on macro-economic secure XXA predict technological to that on everyone competition, for company's Statements available affecting uncertainties Act to XXXX. the Litigation about and of our of a effect the our during entering timing statements markets, the uncertainties information provide SEC materially contained developments customer the ability currently and financial are nature price expectations of supplies, statements Section by developments, today's and maintain competition, prospects with

the turn now the CEO, For more company's you to Brett. the detailed to filings. Please some I'll SEC of go over my business, of pleasure to call It's ahead, ongoing discussion refer uncertainties of Moyer. Summit the risks, various Brett

Brett Moyer

the Summit QX with Thank of today that ladies some and of investor and drivers and performance the to in quarter the outlined is welcome out in the position. reporting key go improvement a gross you, the we an QX margin record strong cash revenue This gentlemen exciting significant and growth Kirsten update. ending call. We'll we're company through

key to call March So milestones on your we laid part of and diligence, investors investors for refer still the due doing strategic the as new XX I out year-end where to a WiSA. plan you or education

participating each we or in transmitter with can the a it, multichannel, or the WiSA other have Summit TV modules, speaker so organizations. WiSA the to with each two each the stock organization. that over standard Now communicate knows the which chips, own side Summit products. standard for the wireless And symbol with IP Summit does WiSA of in we and we organization is brands organization, develop XX

but are we're about going year. So all the to that's a through going that talk brands quick overview. go We're this brands shipping not to XX

sixth like to TV. did some new added So a brands we there slide, that this call, in I'd outline starting the and are we last highlight

TV expect investors we you fifth with Tyson, holiday seasons. expect a to the announce and as since sixth between the like you a working So us and us to call, can can brand announced last WiSA just now

products. brands terms In overall of shipping

were there that IPO were the at around years ago, two-and-a-half six. those For

Now XX Technologies. this plus, as brands to XXXX. see and there's market say hit on XXXX can growth of we more you XX main drivers count companies are there's, our and increase products And using than available we'll consumer, for the page. Summit brand Three

any into with to all reminder or TV a eARC as ARC and a certified that small will SoundSend WiSA speakers. is which transmitter Just HDMI is plug connect connected

a Second initiative category. on is million the WiSA the objective is educate consumers to Wave. The

you LG give SoundSend to did and next-generation our that we just today going X. we which their it on May WiSA happy XXXX since week products technology, projectors. to And this it their Ready previously we're the All earlier XXth. announced on Hisense. has the update into updating quarter. next line as announce on extended are They to Ready WiSA also this their that an right, is March brand TV extended Now WiFi announced third They line. we the is not And

do started now that them. So seeing in included particular WiSA review out reviews which come already those go and research, And mention a is you we've on some important. can about up

On size, coolest the these are speaker slides the slides.

now with one, factor Olufsen, available. price at that around is Bang look just it If & and very that cool we've a form high you rotating announced

first The the extending Dolby it thin system X.X Atmos some tall this extend speakers highly from actually but Lithe. the there using and innovative design company sophisticated available It's in is not Radiance, is is a columns of to And are IP Harman available is proprietary other audio U.S. is into then internationally. the really the Harman's.

of let the with custom in any are connect So real to ceiling speakers that'll speaker working installers, speakers, our partners they have ceiling. that

we Dolby of to great sound a the actually you will they So finally, And distribution. of to here. in well, typo bouncing morning that, not calibrated installed in ceiling, Japan. aggressively give Onkyo the is This already will move out marketing Onkyo, down. international ceiling simulated it back will up see And they coming sound. the not to Dolby a announced SPHERE, are sounds launched the top and going bar, in has the And this speakers this you then Atmos the be SOUND

As update presentation, competing for one the most we've Stevie there's But this this picked already a for happen a year. awards, on shows for. We'll will there now; more every electronics software eye the new the the probably four SoundSend product. pushing recent And industry and another and updates given features SoundSend in has this is software a candy SoundSend release we're award, twice now as up new May. consumer you be in the out that just strong recognition one brand

the just Japan. to see get internationally, still be starting first Wave. it's Samsung biggest think see as spec be So costs Association, two using marketing a catalyst as this analytics products is out, there's start making on by WiSA and UK just and mission category it. the like and sure a lower this then from WiSA beyond the this say see mission to educated they as a TVs probably setting category. they the will as for our is this I technical retailer will I the category, getting able benefits see HDMI WiSA to the products WiSA so we help, system, the of And And quarter, year. countries a the that you'll distributed making consumers make as simplicity the Right, you think is up brands Bluetooth if about sure website. sure as we'll build

to back LGs growth. some shopping start So traffic launch seasonality with we to $XXX,XXX increase to There's guided that have saw consumer been in in consumer, the We reporting We pattern. had out XXXX. QX.

clearly visitors WiSA to last year. and Still came we'll a to but million the various XXX% XXX So visitors websites. on this year track QX in from QX more projecting this in is than growth it still down that QX, reach year

mentioned, I now cost down WiSA's increase by to marketing consumer our we're working drive leveraging of the Okay, to we planned, Analytics, and members awareness. as

with we largest they networks for EV out VP our IPO, mind, Disney is digital Wendy of the and and comes She charging Yahoo their one to So Jive. of and new space objective that member Wilson. added from board, world's Marketing the marketing a did just ChargePoint, of in

into building you'll Wave able for we and then up, be will So Amazon. and And her vehicle coming we're our be WiSA participating that members. see guidance looking on forward to to powerful a store opening the WiSA a

products, cover will all the is not WiSA listed any been but product in U.S. So certified. this that that has

aggregate into one for We will consumer. storefront the

place this in WiSA be WiSA everything Ready will we So if do They on has see that projector Amazon into transmitter, will WiSA, think and TVs. search see been will though the Ready from see will They from for the I'd I site aggregated. like And will LG. the that Hisense. see makes And -- help companies promote come They speakers, to make is receiver will or either it George. choose, companies the Amazon think or choice bundles they LG they that a and a and TV easier also finally, those for turn with bundles WiSA call consumer validate convenient that, in speaker world. AV And for -- to companies create to over to the it category. the it

George Oliva

Brett. Thanks

was to Revenue QX QX QX compared for quarter XX.X% quarter in in over in the was improve XXX% of revenue Gross XX.X%, XX.X% margin record report us. another to million. an to continued over increase happy XXXX. are $X.X We XXXX. same to That's and

included $XXX,XXX previously charges March Our improved of $X.X came guidance at the at $X.X million OpEx that that to non-cash we of $X million below million gave. Cash in was XXst.

continue charges. sequentially of current $X.X up The over is QX expected non-cash In guidance, be OpEx to include XXX% will revenue from expected XXXX. which of QX about improve to be to we expect to the increase $XXX,XXX approximately million, gross is XX.X%. margin terms

XX-months QX, be $X at at end you trailing million forecast of If to on over XX-months. trailing look our the we

Brett Moyer

George. you, Thank right. All

are the got consumer So that from WiSA I'll to market questions. products with market, to we've certified. driving it for number that, And or We're expanded and up we to a a up we've in great open think us. position in be of education industry, the coming dramatically year about

Operator

you. Thank

conducting Instructions]. now will We be session. a [Operator question-and-answer

with from Jack your Aarde Vander the proceed question. first Our questions come Please of with Group. Maxim line

Jack Vander Aarde

Hi, Hey, George. Great. Brett.

Brett Moyer

Hey, Jack.

Jack Vander Aarde

Congrats all to results.

Brett Moyer

Thank you.

Jack Vander Aarde

see I'll question for good taking and for my Plus the guidance, thanks Right, strong with start to you. questions. a

just existing One, this you be could but up. add what location, relative can secondly, mean any are region add what you here. I provide momentum? strategic display it Maybe how year. later you this does to potential anything provide color? partners, any a for you large us means for another your to expectation are, two-part descriptive you partners as an to that'd display mentioned two What that these mentions, kind know you helpful to You more remind size partners? business or then your And provide explicit able of partners question obvious maybe can't

Brett Moyer

so I'm -- business I'm say go beyond more well-recognized two saying not our so I -- going Well, just both brands. yes, comments. to would not they're

I both think in the they're XX. top

leave But And more it one right. year, we're this to was last call there so that, going comment. at

Now there's two more comment.

continue the give competence one reason SoundSend. help of we business we this make TV perspective, build a brought stay. that's ecosystem products the So and companies that's products, Ready to here progress. From the And standard lot a a WiSA is certainly to speaker that to out

speaker they do a wireless and right. guys So of be the SoundSend the bunch know a there speakers can TVs is there'll

the connected into experience, to and been easier experience, WiSA because it's if you're TV. has cheaper SoundSend all consumer Now to it's integrated it's cheaper a because a Ready but of TVs, doing TV form connection the consumer

is us terms this. great brand for In -- when of enabling, brand building, so support TVs great the is

Jack Vander Aarde

that color, Got sales provide Just WiSA awareness a topics, some help open pretty adds like switching WiSA with another and it. seems also that Brett. imagine maybe just to from overall plans accelerate would Amazon Thanks. brand And your the can more storefront? you consumers helpful big perspective, then on deal. color I my channel. That's really

a like opportunity, any large provide potential you if more could color seems Just there.

Brett Moyer

do we think be it's catalyst, Well, a going right. to

But to is, this I will product do So into that production through how hey, transforms big it whole go increases certified and is they sales, P&L that the think sales, got out of stuff, the several quarters benefit if first take the back the WiSA category. right. only, because

XX, are as Ready So there, all right. XX, of whatever the X, all are brands TVs Amazon's you in what the that worried they'll go number retailers see the doing. but about well, We'll that WiSA see there's

yes, this It So of it of retailers world, both as real world. the to category tells focus of tells the tells well buys the your on on the -- a just it your you need floor. best any website prons retail that as the is and

Jack Vander Aarde

Got it.

cede just provided, expect and informal least floor. just then guidance, directional the then ask Okay. want that, That's helpful at you on I'll second but touch I'll revenue one the guidance maybe sort XXX% of more And quarter to question That too. growth of a -- year-over-year? I on you

Brett Moyer

Correct.

Jack Vander Aarde

you sequential implies least like kind And expect result. XXX%. first at of That this you open-ended I seems at it look least guess also growth in with quarter at

And it members? with strong But the supply guiding potential like retail vote and a just this there's all just seems talk about stores level and the it up the seems visibility? then partners, retail you're like market? COVID of to things more. for still retail of also that improving you constraints So here opening growth. and it it's just and Can what your confidence shift like play into confidence Is with Is your brand your maybe are revenue shortage. the

what's factors growth driving into revenue visibility your So -- can that playing for about just that? your the you and talk

Brett Moyer

in got you Jack, Okay. five one. questions

it going give So a try. I'm to

So QX demand record are right we another quarter the expect from you so do when -- side. in

that our from locked strong are in customer of and consumers from from reassessing we as the value well QX of the and side, people value the as COVID in system. are their the both quarters. COVID So think demand of think because people their entertainment amount is fair QX a house, of there We

the in And think how shapes a based I through orders looking see year that'll on Christmas through be to everybody QX. will seen, got the the I right. we've think strong up So seasons September, continue we've bookings

supporting production there lot companies. a of on it's parts, supply, critical June moment. at environment, And and own consumer chips, the firm fully delivery don't world firm is we have limiting, being change any could see chips terms for out product. with right electronics our and commitments of through commitments customers Currently, the we tough the we for world radio run. a our -- all through now QX quarter but That's our In auto

Jack Vander Aarde

my then in Does for follow-up with help quarter or June third was of demand satisfy the that set actually month, question, ability commitments for for kind last your which your a guys. more walk delivery just holiday that one that that nicely season? and is strong you does through run That firm up to that production that you quarter, to

Brett Moyer

So we parts place critical POs did all in substantial November. back on October and

can a inventory modules just supply around moved in balance, little fast bit, delivery we and as coming as build So a now. but have dates out from about them our and are right going as

Jack Vander Aarde

Fantastic I'll hear. results Congrats Excellent. to on solid the again. hop back in queue.

Brett Moyer

Jack. Thanks, right. All

Operator

you. Thank

next Wainwright. your the DeDe H.C. comes line from Our Kevin question with proceed question. with Please of

Kevin DeDe

Brett. Hi,

Brett Moyer

Hi, Kevin.

Kevin DeDe

Thank you my for taking call.

to can possible one as going too. I'm pack So as many into see if I

I beg So advance. in forgiveness

Brett Moyer

Okay.

Kevin DeDe

given your that improve so your year that right, again would gross said, love the color going strong a margin mind to know Now you it's financial model TV was for taking on plus I sequentially. -- what's color question. margin, All us through you the George just gross surprisingly the target

is your us through just mind wouldn't you break-even? maybe and on what hoping for an taking give your year, us was idea I the So general expectation

Brett Moyer

talk let's so too. Yes, margin

said target for six that is quarters, get We to points. quarters XX our have to eight

and to little that year, started QX. You we range, the again in change last see into a more in QX in QX, XX% And got bit right.

continue time. that'll we expect the to XX be or So just to shy over margin, points close of full-year

Kevin DeDe

Okay.

Brett Moyer

Okay.

Kevin DeDe

And, yes, that's that's, great. okay,

report your you that. would insight than be March? some see give think, that well did looked to you you might do able better on so hasn't suggest don't changed. just why you like I us It So that in Could

Brett Moyer

mix. Kevin, factors, of right. couple a there's There's So

of some right. slightly higher our, the have customers pricing, So newer

the gets There's over fixed amortized higher cost fact launch right. phase, So dollars, more were revenue, with that OpEx when more the we of aggressive. revenue also the we were in

Kevin DeDe

Absolutely.

enough. Okay, fair

Brett Moyer

the So, those two are components.

Kevin DeDe

is? enough. a Okay, I environment difficult supply, you're Back XQ fair issue; to on delivery you give us semiconductor customers to okay I semiconductor What understand just the QX. Can light of suspect guess in feeling versus your meet through globally? timing insight schedule sales your some

Brett Moyer

Well, okay.

anticipated the talk all let's we us peers deliver is June in orders. to through in about And orders consumer support for place plus critical sales So open October. to quarters have

be the think -- our customers we supported. So will fully

Now, for the we rough have is hedge share We I only And there. for fight commitments share of our you it's of out world allocation. a our gave allocation.

have supply QX, good And we think so QX we a chain.

Kevin DeDe

were to I'd I count? you in the warrants it's seen I me exercised. haven't imagine, XX-Q, there outstanding; to Could Okay. insight Could but some speak knew share some obviously, mean, us you of probably it that I sort seems yet. many have that give the

So what yet could just left that be you exercised? think on some insight be open might that and

Brett Moyer

Yes.

do actual can you to numbers. ready the George, So get

-- available you it had If

George Oliva

Yes.

So the so -- the -- QX

Brett Moyer

hold on. on, hold But

George Oliva

Right.

Brett Moyer

Let a right. unexercised of amount in substantial is me still the warrants, just money say there

warrants the funding is over still plan fundamental record. So us, to be source time. dribble that the non-dilutive And we plan that of in a of expect a to

So George, you can go through share count.

George Oliva

QX was it the so shares Yes, XX million, was just X.XX under million.

Kevin DeDe

Okay.

George Oliva

is X in a like Brett as exercise approximately that's with And million $X.XX weighted average of price mentioned, warrants. outstanding shares there

Kevin DeDe

more, couple big Okay. is probably this think Awesome. I one. A the

the obviously, hoping on you're great addition marketing to side. the with experience digital Now, to board, you leverage the made

VISA visits up Your March. are through

Brett Moyer

WiSA visits are visits. up, baby, WiSA

Kevin DeDe

WiSA. visits. Yes. WiSA

Okay. a to on that still and some us your with you how to program that background. in web analytics share lots the convert Give you you've been insight now. of struggle please, I could obviously. for But there's know, few working Maybe that this seen take you them. advantage? given running Brett, quarters those you. program obviously, with Thank intend how visits, us I

Brett Moyer

Yes.

program are lot with run WiSA, the of we right. around ads that now to layers But So there's in is a right. phase to right that,

that probably get people that website XXX,XXX if brand So impressions. to -- that's you if right? million WiSA you -- I X come a if Did there's see that

George Oliva

Yes.

Brett Moyer

there, And websites. who you X returns see the million WiSA to that's So brand can about from impressions.

only not But who is more know is know, do to WiSA research. returning of aware who you now, you WiSA. to So also

So and you remarket and them. go now identify to can back then Google and to both in that person Facebook,

You can identify people by region.

launching single have if in So them every six Onkyo ability Sound came think tell from about their Well, Sphere right. is Japan the the I to in that you person last months, Japan. for

WiSA to people directly the to marketing, come why to they last say, look, So go months we're XXXXs -- doing back and those have not our in the already of ability six know we're something have own and about go remarket that going them. after and but

If lot think Europe, stuff. brands we in about I from or European you probably X,XXX think of -- QX consumers we got doing about, high-level We'll a have X,XXX right. X,XXX

So those or company to aggregated UK the versus remarket and allows people country, can be aggregated that. by them the by Mainland,

the that's going So them now to have what brands data, that use the back and it. to showing we we're how

to this again, they use them shake fall during show it what season. is do, have can use to it, the data get and ready So the it to them how down,

show goes of three of the or Typically, a that one products. Harman category leader, have we we've brands WiSA Klipsch broad will that simple in that'll ways page category what it's used then other landing the page. story, right. it, a talk the we that's the it consumer but think up exists. if good, run set WiSA And mind Kevin, call And then about best, better, that Enclave some the Now, building been about the in WiSA ads category premium mid-tier, the to as the Platin as you price come or

example another we that's the build can use to So category. how it

product directly of able one pages, they on are them click to those to send a consumers able retailer. -- those we're to go when Now,

sent all of Amazon the send Amazon that B&H we've people people Best Klipsch, those just three is of products. we've Well, of to up can store now to we we've see store one Buy, sent the to to people the advantages anybody into So the all photo; Amazon. sent opening

Kevin DeDe

Okay.

I little complying thing But listen; Okay. that Thank of regs. the bit? guess GDPR to a you. in that just stands speak could have confidence you the I tremendous sort in out your and you team and with

Brett Moyer

privacy? of terms In

Kevin DeDe

Yes.

Brett Moyer

From for of running perspective, consumer. already our ways us So to reach we've we're adjustments, to effective ways on a one the for is full Facebook. a adjusted most lot right And of compliance. lookalike the there's ample now least at out campaigns in

in, build we're still around and that as able So the have to WiSA. Google consumers actually come still -- to we profiles have still are them. Facebook visited able tag people

came throw like the of will people visitors. let's So and those their at on people algorithms XXX WiSA's one look advertising say run those Facebook -- their and page. just -- campaigns, campaigns WiSA's in people at look XXX XXX to to in into landing Well, that

So rights. anybody's we we model privacy engaged. who already around haven't are campaigns has But have we used; able violate to

-- So you at look

Kevin DeDe

Right.

-- watched it. So watched you Yes, speaking you for you anonymous. so just I you, watched it's data over apologize the but

Brett Moyer

that, does We right? Facebook just tags. have Well,

Kevin DeDe

Okay.

Brett Moyer

they don't any idea who have I are.

Kevin DeDe

Okay, right.

Brett Moyer

shots These Now, of, that which right. the buyers, come is a ads. are through a use and tell on aren't in ad, aren't page ad for if a clicked you this, right. review on or the real email critical, all people clicked Platin that's or XXX the way Facebook, from These I somebody out done research product in purchase. This an something these going an they some they mean right. buy coupon. from say, that store, on landing people their Once sales Platin of didn’t is can address promotional out get hey, you If store,

the retarget farther we the down retarget people anonymously, purchasers. because So they listing effectively look like but we there's the can channel can tighter get

Kevin DeDe

Okay, okay.

Brett Moyer

made That sense.

Kevin DeDe

all absolutely. was black huge sort Yes, curious. to no, feedbacks. those Anecdotal a my just in I was of, yes -- little of just sort was brain just just next I I yes, holes that it apologize

really you it go I through. appreciate So time the take

Brett Moyer

buy in selling need a responsibility expertise convert five a similar, and what tell to has charging a so experience, and We -- right. very there's I so she stations you to buy and that them still real somebody lot in -- to if there's theater, up audio needles to got want We whole job right. our -- digitally Wendy is have Well, search EV this to a learn. about think home a is sophistication for has right. vehicles, a market, a level beyond did come soundbar, some do -- of this. P&L a we somebody think to will haystack, to it's that board Narrow you to to she find it people who can used wants currently to Look, deep you find we

Kevin DeDe

Well, okay. just anecdotal a and you. Sonos here yes, Okay, in so its very Partner little home, for because selection. disgruntled at system it's limited a feedback runs

we it's greatly So just the open customers system it. But what appreciate provides worth. an that for see collectively advantages thank Brett, you again,

Brett Moyer

the Well, thanks for questions.

Operator

Thank you.

Our next question Ascendiant question. Ed of Please proceed comes Woo with line with your from the Capital.

Ed Woo

the being holding to Yes, hearing able supplies you possibly congratulations back to also, partners. manage release year, products they having more your on their maybe congratulations on quarter, and is to My customer issues terms Are about shortages. on in being question this are able of semiconductor more? ability any and the ship

Brett Moyer

chasing chasing holding and the So a right. good so chasing. chasing But they're have And the work far nobody's good hear our us supply, we have back. so dates, there all we they're customers do. They're is a just it order like widespread and book continue Everybody's we it industry shortages we time, capacity. inventory, to launch across for

Ed Woo

an this products it planning any So your as year. launch issue you that as of don't partners of terms see are the to

oh, it, saying, significantly you because any from supply heard them issues. we're of or was delayed, we can't this do our having haven't know, own You

Brett Moyer

customer six get Because it, may our weeks. issue weeks, launch. about doesn't talk out. stop just issues building The production, as it organization, right, to all you're validation we not going eight to weeks, supply spend the and two them if delay general, by this in time the base. think an a fight you and certifying, I and time It going runs, fight designing, testing, you to supply you're get holdup, So

we remember I cost you're was were I year, So up. similar Because designs you design or said work there certainly And China, cost just launches. when call, may with going to four launches. that may it because now, moving back, same it weeks, not COVID. the weeks the in the designs. But said, and went if the you sales hold a lost thing peaking. is thing weeks timing We're not challenged -- four, is We're you that COVID, not was on But right. a around. but COVID lose or six it on week, We Asia six right of eight losing in didn't not losing last it's

Ed Woo

it then the And seems most especially international, U.S. of marketing. and in your Europe marketing my is question that last Great. that is is in about, focus correct what

Brett Moyer

So Wave, about the WiSA if expect the I yes. in work at active moment, you're talking more from see Europeans And answer is would to the QX.

brands different to programs struggle offer of out our They're lot getting a in are we're on have without they're We where out that sorted languages Europe, focused members, in with. to analytics first we our territory different. have premium But brands. slightly the and to knowledge good large a

Ed Woo

answering my good luck. questions, for Great. thank you and Well

Brett Moyer

Thanks, Ed.

Operator

time. There [Operator you. management back call like for Instructions]. no to the at any to I questions are closing comments. Thank hand further this would over

Brett Moyer

hard update joining thank Well, QX. our to like gentlemen the today. I'd to and and working forward great thank thank team. to results. look in next you. our like to call ladies for ladies, you, Team I'd is customers the Thank deliver

Operator

does participation. conclude for teleconference. today's This you Thank your

You Have your may disconnect day. at a lines time. this great

WiSA (WISA) 12 May 212021 Q1 Earnings call transcript