Earnings call transcript Q2 2023

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

Operator

Good afternoon and welcome to Wrap Technologies Second Quarter 2023 Earnings Conference Call. My name is Nima Parikh and I’m the Chief Marketing Officer at Wrap.

Joining me today is our Wrap Technologies, Chief Executive Officer, Kevin Mullins; and our Chief Financial Officer, Chris DeAlmeida.

Following their prepared remarks, we will have a few questions submitted from shareholders.

I would like to remind everyone that this call will be recorded and made available for replay via a link in the Investor Relations section of the company’s website at ir.wrap.com.

that at parties receive ir.wrap.com stock asks investor on alerts company information. website relations to the all register interested the and Additionally, continue to

results today statements reminder to Safe the both differ are such risks as of to Litigation unknown during listeners, amended. a Securities provisions statements and certain known statements. Private could of As the pursuant and to Harbor cause call from uncertainties subject Act constitute the to Such forward-looking made statements actual made materially that XXXX forward-looking

obligation These risks as described statements. The in with release not of earnings to forward-looking in our any and the SEC. of fully our update and uncertainties call, the the made are and do this more forward-looking are date statements today we filings undertake

call to over our like CEO, I’d turn Kevin to Mullins. Now, the

Kevin Mullins

day, earnings XXXX are as in to way second an as quarter and and call. and exciting paving for welcome company results, Wrap I present and Good to interest our for developments that time pleased key strategic future I'm second our your quarter Technologies. the everyone, our some rewarding appreciate well

common First, I in and journey LLC, cash X.XX transformative solutions portfolio. This milestone investment The marks $XXX,XXX a am by share pivotal of stock, innovation Wrap management Intrensic, a in million continuous in a and worn to acquisition of player cloud-based camera technology. momentous growth. leading addition shares of to evidence our body thrilled and endeavor, our of backed

solutions outcomes horizon commitment reinforces growth transformative strategic law unwavering fold, forward as to and our public and we and we communities provider position empowering This solidify move as our together. driving seamlessly and safety dynamic By comprehensive a opportunities, Intrensic safer enforcement of into a of and move unlocks boundless our integrating worldwide.

cloud a to strategic offerings landmark enforcement brings body-worn perfectly also market. only management system cutting-edge, the diversify solutions. table based to and to acquisition, with but Intrensic all-encompassing we elevate cameras, security in to clientele vision expand our customers, fortify this broader digital law not state-of-the-art, evidence service and and existing our the a which seeking Through aligns our

With as by and suite of commitment continue relentless with its demands integrating law modern a capabilities solutions to domain reaffirms a sophisticated bolstered of technology paving ecosystem. way the acquisition, a this to drive integrated enforcement worldwide Intrensic's the comprehensive evolve. prominent policing with more be this Wrap will authority in cohesive, to own, our be for A empowering

welcoming in one-stop step By enforcement takes shop needs. preferred and family, law Intrensic towards significant into our becoming a for the security Wrap their technology

ally end-to-end, striving expanding an increasingly making will public Our to us complex options, agencies integrated, the portfolio encompass stay ahead indispensable for technology fully in advanced world. safety

for drive change As our forward, ability will customer strengths partners our and solutions. we move comprehensive to seeking propel impactful new Wrap's advanced technology global base united

our and no-harm Going reality but portfolio. to move We in exclusive continuing Cloud; and to together. safer forward, world public forward communities approach restraint Wrap will device. virtual platform; Wrap the enforcement empowering BolaWrap distinct remote apply training patented around our look our on our solutions and and cameras Body Reality, law offer driving Evidence three to complementary, outcomes, safety, to worn

of restructuring, Now a to our XXXX our for success. been quarter our results, turning has the second period future setting stage

large customer surge training of witnessing announce reality virtual last in sales of delighted we align a with overall as record our year's Wrap international Reality, are to XXXX, orders results to demand. in significant due which Even the platform, timing is our

opportunities. increasing our these to domestic our to and significantly both We half international into We cater and progress the contribute are we As market solutions the trajectory. for tap will demand markets. whose warm into the the year, potential our expanded sales like insights extend welcome optimistic we're and international to to to of immense in growth. and members second new growth also see about expertise thrilled our team recently our to board I our the would focusing a efforts in

to see with solution, global orders cornerstone existing for enforcement and underline law and continues number a international advanced growth in growing both BolaWrap, robust appeal. BolaWrap worldwide. agencies a new for are of we resonate Our large sales which departments, in We its talks

and rapidly year's high-stress earlier, Cloud mentioned sales and of skills solutions now scenarios leverage the expand global number outperformed platform expect in last officer We Wrap rapidly anticipate I we As Intrensic's six to in decision-making situations. sales our already enhance And unique Reality body to a in worldwide. platform force to Intrensic has camera months. on the increase just folding our are in Evidence

this major to full remain our strides of in vision With taken Wrap. cost in new We setting poised We've potential a and disciplines. the fortifying performance drive, to we year and benchmarks unlock are relentless future. clear operations the current committed and investing

a we increased last on reap brand, rewards numerous law with relationships of of training, forged As to solutions, share long-term development. and and I call, has innovative started the market Wrap worldwide. have mentioned established robust our research to marketing, investments the enforcement and agencies its

and hastening are our existing pace base. which new sales increasing we from adoption at rates We our close customer pipeline the expanding across

that with multifaceted and to model inside territories, outside sales a approach efficiency improve scalability. our priorities, established entails our targeted collaboration optimizing strategy we and between aligned operating that teams, our and adopted enhancing and sales well-defined our streamlining a Having

be this our will implementing able operating in orders expand we when By to quickly operation large model, later materialize year. leaner the

and we can are targets. we measures attain these With place, stimulate growth that in XXXX our confident

that rest outlined the deals; I've two. close which main accelerate of we They deployment three are expand One, we the priorities rate the as at into head year. are two, mentioned, this previously As and the operating I'm we underway we three, and with existing of say customers; seeing are reduce labor. non-essential well expenses. with our happy program already to fruits our

to our Chris over the I'd financial to results Chris. quarter. call the discuss Now, like for hand to

Chris DeAlmeida

business a for beyond. outlook our I'm the of going Kevin Good financial present developments. now afternoon, results second you an half for insight and overview give second comprehensive thank XXXX our of and and to our strategic into quarter providing everyone, and you

Despite the strong international half in expect million achieve of we XXXX, were quarter, $X.X prior second year, figure of able consistent by the close now revenues timing we of a which large the to period this orders, the in continued still certain same with sales. driven domestic to

in $X.X million to million. our prior moving up major from business This year stability the of is appeal, the revenues and a X% executing model robust revenue we're strategic process increase as changes. testament Americas, period, even In a solutions the saw from to $X.X our

reflection held a foundation we steady have revenues of the year-on-year, markets. strong in built international these Our

$XXX,XXX. quarter gross by the Our profit period, $XXX,XXX prior from for increased the from going XX% second year to

efficiency increase the to and healthy Operating gross in margin of by one-time for increase did manage XX% our mainly changes made off, a we to XX%. efforts year BolaWrap clearly costs have our paid costs the XXX organizational and this period Our same production related expenses our to from April. in reflected due is ago,

and However, commitment if reflecting expenses we our operational have exclude by operational these maintain would one-time items, ongoing decreased discipline. financial efficiency XXXX for to our XX%, QX,

costs. QX Unfortunately, these slightly did to XXXX our loss increase for one-time net due

one-time a year XX% items, million, the which the significant prior on would improvement been is our Excluding have net period. $X.X loss

Looking sheet, robust. balance remains at our it and healthy

of of million, had at end and closing investments the $XX of totaling we’re part the of This end proceeds cash at Stock initial compared to from the still Preferred short-term XXXX, equivalents, June. we As of cash, million Offering, process million which $XX.X the XX, $XX.X includes XXXX. the June Warrant in and

law On the of note period. I'm promising from ability have that of safety by expand agencies officer indicators of grown and market. footprint key pleased continue trained indicators, to our to share to XX%, performance increased enforcement by XX% number public These the our influence total and certified in have our prior year are the the instructors

operational and continued In strategic future XXXX. sheet, these announced value we and robust conclusion, our along strategic give of a shareholder for market position our half our performance acquisition us with success and believe the just financial second balance improvements initiatives, for long-term We well confidence combined that health creation. with us expansion, stronger and

operational by margin. our summary, XXXX despite QX, effectively, XX% year-on-year, to costs manage impressive and changes. appearing In amidst We've our profit continuing an ongoing improvements resilience profit gross while demonstrated organizational in increased gross XX%, resulting performance, flat strategic

Even for these our adjusted significantly expenses operational certified With costs. officer impacted influence our performance one-time expenses when of increased as improved and trained instructors, market rise. number is net agencies an loss, and on the our enforcement law

revenue position, complemented for sheet, is strong promising orders, a international for second by up Our well setting robust the XXXX. potential half of us a pending cash positive including balance our

value. creation our of in confidence All success, long-term elements Wrap reinforce of shareholder and Technology’s these future

for outlook Wrap. like discuss back I'd over call that, to to With Kevin our to the turn

Kevin Mullins

Thanks, Chris.

As Technologies the the to very opportunities and of and path new Wrap is of at soar I'm chart we poised heights myriad look journey, exciting and to thrilled growth juncture a transformative by future, to a ahead. success. unparalleled in our inspired

well Our a law and to training we immersive the bringing new experience flagship of agencies, to revolutionizing further in are gain is Reality, traction. BolaWrap, solution, global Wrap With perpetual them positioned enforcement paradigm learning.

services, managed, perfectly of with to cameras evidence Evidence with cloud-based transform addition is digital Cloud evidence on complements portfolio. Intrensic, streamline and integrated its and The body-worn how our

us. to significant opportunities offerings, we combined our capabilities market with the With sheet, before expanded that balance our of team suite integrated and combined these robust comprehensive prepared are in and are seize

about that them agencies extremely prospects providing communities. bullish outcomes be for growth preeminent worldwide, the innovative, safety our and effective to drive with safer I'm partner aim we safer for as public technology solutions

the for a the for for performance Wrap with has future the conclusion, confidence In half our outlook us of year, Technologies. second positive bright the coupled half, first in given

and position for line our team well success. product fortified us dedicated Our

continued vision. belief Thank and for you your

continue strong promising. to creating look performance, quarters. this and indeed We delivering is forward Wrap coming value Technologies are and growth, the driving in The excited future for further shareholder journey to

I back facilitate pre-selected questions now investors. we the Nima turn and the from received to Q&A over to call

Nima Parikh

submitted half compared were Thank of XXXX? does you, shareholders the questions Kevin, to look first following XXXX the of Kevin. how half interested and from second The parties.

Kevin Mullins

be half. shaping when of promising, Nima. for the Thank you, up outlook The quite to second compared first XXXX the half is to

in we as with the first for are landscape earlier, robust regions, second second unpredictable means for clearer a nature of mentioned that us a pipeline the half. with while have discussions the the borders international Firstly, half potential seeing a some positive with may coupled Advanced provide subdued, regulatory clients, XXXX. been of outlook international we half

efficiencies are results our in XXXX, half and continuous the the of in improvement of operational from the costs speed first delivery half gained XXXX. positive On initiatives of of expected yield terms to operational front, the second in

higher mix product a due anticipate which also to and margins, more initiatives. favorable We are strategic

this expect serve certain in worth latter we the very we noting well, to historically, to uptick this part XXXX true seasonal adds see markets optimism. hold year, that and of as It's the in demand a in our also and

in I'll also presented just really strategies challenges, our of say of summary, provided first a re-find prepare to with its own opportunities half us it while what XXXX for XXXX. half enhance many offerings, our stronger were, of the set

value very all enthusiastic the committed months to partners. about our we are and ahead So shareholders of our we're and delivering to

Nima Parikh

This Intrensic I'm Thank and next why direct now? you, Why question Chris. to to Kevin. going

Chris DeAlmeida

now, Nima. the Wrap why innovation our our why core and is the There's and safety on Intrensic, Thanks, been has in of Intrensic One forefront alignment several rooted of sense? it to competencies. why does decisions security. make different always for acquire reasons of respective and

a with our our under customer through but advanced umbrella, not only combined the combined evidence to which the comprehensive offering solutions. bundled other relationships anticipate some and clients enhanced Also, the Wrap existing by value more to digital deepening integrated with base, also clients. more table Intrensic brings management Intrensic offers solution we with our when products, our expanding solutions,

streams kind move This current markets. that is new longstanding revenue us a and relationships for of our helps position in fortifies

digital why for up, Technologies question, an opportunities, to Wrap remain world. kind strategic why It's the leader strategic. It's an and a now? in Intrensic, as of kind sum our harnesses move sets just that it market, the future of So to industry increasingly serves with stage current to holistically of the

we our are drive confident stake. We're this acquisition excited that about for significant value and we’ll

Nima Parikh

finally, And then Chris. Intrensic help Thanks, how does XXXX?

Kevin Mullins

expected additional a of knowledge, the that tap value, saying, of our wealth And some accretive what's has financial relationships, but improvements. contribution to what into also into brings, a Certainly and implications integration proposition. to listened setting work us these of add health the just our for revenue on value. very to day to immediately overall us when agencies our specific with. We at performance. in to increased able reinforcing will profitability Intrensic We listened We and Intrensic offerings suite, expertise, plugin. to shareholders. the a the one like to a look path be portfolio we partners It our marginal a It's enhance accretive you It's our not listened streams, allows earnings, our value significant XXXX. product

us Intrensic also means multiple presence, There markets open opportunities. complements there. across integrated offer It built It There customer of we new and into market reoccurring solutions, for and segments. footprint, Technologies expansion be upsell to industry. nature models within is doors sectors are creating opportunities and positions favorably can gives products. established to the different both relationships furthermore our new bundled this. cross-selling, This broaden to revenue geographically and Wrap able the their

that requires something innovation, into fast is as tech market, but in very also CAD the landscape, There's public able It's to Intrensic Staying And only is ahead too safety. unique, integration. in such RMS. especially also technology that's not being but and solutions integrate other a evolving synergy. a

suite solutions of more sophisticated what at beyond. look is needs It to us pivotal operational base. products for our customer comparing growth you When efficiencies it now, XXXX in our the this really allows then and our are really to really of and user alignment This drives in cater it to enhances whole strategy and into our experience.

finally, So to those it doesn't navigate our landscape, emerging acquisition XXXX opportunities. evolving essence to enhanced commitment add amplifies both better say public very excellence can is it. and is safety to a portfolio, integrating Intrensic By testament growth, can just capabilities, capitalize in deliver what I'll domestically to we're equipped value The a and internationally. at stakeholders. our We our to innovation, to Wrap. these on We just

Nima Parikh

Q&A concludes you the call. you of Wrap joining Quarter Earnings XXXX Second Thank today us both, our Thank Call. Chris. That Conference and Technologies Kevin portion for for

any have us out our questions, website If via ir.wrap.com. you reach to please at

disconnect. now may You

Wrap (WRAP) 10 Aug 232023 Q2 Earnings call transcript