MITQ - Earnings call transcript Q4 2024 | Moving iMage Technologies, Inc.

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Operator

Greetings, and welcome to the Moving iMage Technologies Fourth Quarter and Fiscal Year End 2024 Earnings Call. [Operator Instructions] It is now my pleasure to introduce your host, Brian Siegel, Vice President of Investor Relations and Strategic Communications. Thank you.

You may begin.

Brian Siegel

Thank you, operator. to Technologies welcome and conference and webcast. morning, Moving earnings iMmage call Good is Phil Sales and provide me our a Chairman With today overview business CEO, Delgado, will overview, and Executive strategy and Joe Bill an Co-Founder, Rafnson, VP Marketing, of Greene. and CFO, who provide industry will who

the that our website. of you of today's those section not seen release, Investors it For have is available on

are results discussed mean forward-looking believe, that Before that information in beginning, the except or everyone but risk in I this results of estimates the filed information, there expect, are can that contained will remind assurances on risks factors presentation be SEC. would from is and several quarterly writing, best for or anticipated with no those matters statements. differ statements like involve of the the and that could materially like historical Words this as Actual company's Further our actually reports annual expected future company's to uncertainties. these events anticipate, take place.

to I'd to away. it Take call the Now Phil. over turn like

Philip Rafnson

excellent Thank of positioned everyone and or industry. iMage is MiT first today. profitability. joining with a business We're quarter to you, strong of MIT. Moving tale future marked about excited the Technologies, growth was We Fiscal and the XXXX Phil environments. results, cutting-edge technologies. Rafnson, broader of began lead truly And with Brian. different X vastly revenue cinema thanks I'm to entertainment by CEO where us

our halted quarter second strikes, we and significantly momentum affected writer results. was built actors fourth the the However, by through which

for budgets the but environment generating process This were were and strikes MiT focused who long-term unable value, their created customers to success. a consequently spend remain near-term positioning budgeting their until on Our tough we for resolved. initiate

These higher-margin not MiT our During and repurchased proactive eCaddy forward strategies enhancing future the are for recurring in our aligning period, operational We development actions with our we most CineQC, steps implemented with go-to-market market, cost stock and prospects. Translator, also as and challenging recently only open revenue us took emerging $XXX,XXX products strengthen opportunities. growth but future to such reductions. in the annualized move this efficiency,

period return market. successfully growth June demand this with and the the company months. we with films saw a regain for cinema footing initiatives believe blockbuster over experiences, as We resurgence By quarter, and the the of premium operating past leverage we industry growing its despite the position the navigated to XX we've a greater result executed of a revitalized cinema the driving strikes strategic

a leader as and forward. in positioned exhibitors MiT of momentum ride for solutions wave this to industry well growth the innovative capitalize on moving is technology

we're high-quality exhibitors viewing confident responding advanced investing in and Consumers immersive in projection, the ahead, by the environments, strength Looking immersive are demanding of and continued industry. audio are premium amenities.

stay excited. in next are chains upgrades theaters to we're cinema demand technologies. to The X, competitive, States over in investing heavily. why X Number Here's over plan Canada driving will follow the our largest United invest billion further for the Smaller and years. suit $X.X X chains

significant shift, cycle. we're life. of years. opportunities. Number entering The X cycle first is this last servers lasted The X, we mandatory upgrade as and reach in already projectors tech new cinema Today, and end a of innings the cycle upgrade industry just see

years. upgrade projector to million representing alone potential XXX over For in us $XX over the $XX one next projectors, medium-sized plans X example, alone million for to just sales customer

players. investments by strategic major X, Number

Drafthouse Pictures strong acquired Sony the of future in recently Cinemas, theatrical confidence signaling Alamo releases.

theater into requires MiT. Number offerings. rentals, gaming to equipment. versatile, X, Cinemas are diversification expect and expanding accelerate which further high-performance and present for We growth events, this live of opportunities corporate

to meet and Our solutions product MiT perfectly other evolving position MoveEsports these needs.

MIT and We're right to transforming To cinema is in sustained perfectly confident In our Thank forward aligns drive the our and is heart moviegoing and the experience. to at with Joe? innovations shift you. growth offerings. technological it. of delivering solutions summary, world-class enhance ability premiumization the industry continue

Jose Delgado

and everyone. Phil, morning, good you, Thank

fuel seeing years confident share in our fiscal to business As that optimism and make head rates will one higher this efforts profitability we're of the core promising challenges, but driver growth key cinema mentioned, across of future. on a XXXX is of come. Starting technology upgrade A significant Phil strong posed we growth them we're cycle. and transformation with a and signs even initiatives. stage its the progress to of face key These business, the setting are several continue our for model

X next their laser need than newer to to projectors will be life years, cycle the the technology. will in from of on with variables. and projectors XX,XXX These reach range $XXX,XXX price overall more replaced depending Over brightness $XX,XXX and and end

Caddy every million in capture won't cycle, more portfolio, the we're added complement even and of time, And these cycle, opportunity, our confidence for introduced growth avenues XXX reached we $XX over we diversified, more brand giving the additionally, sales. While margin since us annual proprietary which Many ADA us offerings expansion. products. and upgrades compliance upgrade last and products the having experience higher-margin of last this and we've to gives during our

global a LEA margin, in not the apart distribution larger only with products power cinema partnership twice excited industry be where out a with standard, also for the we warranty them competitors. amplifiers but about rights that's LEA's market. their from the stand smart to continue setting have carry We Professional, our higher

and giving us or about is The TAM about of will opportunity here this total to estimate need $XXX total million a replacement $XX installed million valued tremendous. that this $XX the at XX% annually, year. is space We market of million to addressable market per X% in base

plan with to results by several positive inroads circuits successfully If making within wrap expansion months. others with end. in pivotal testing already we test should XX European potential talks We're as our expected LEA top we strategy to where is customers. start in cinema already Europe XX XXXX. Moreover, to the flowing orders to in we're see fiscal begin and next up expect, We with completed year's are one as XX

about talk some aimed most we've adapt creating and SandBox's to Sandbox refined fundraising But with exciting more the eSports, eSports, cinema opportunities company, efforts. let's focused much a eSports market, beyond delays Initially developed strategy. starting little initiative we league Now due it. with a the where at some our our of face of extended as

approach from fundraising to we've its Sandbox evolved relying instead While shifts Sandbox's eSports rollout. our on launching solely of to operations,

are large eSport already leagues support allows leaders these pivot circuits. discussions theater in We've begun with to and to to theater pursuing several circuits leagues direct us ready independently. active rollout internal we're eSports This engage and with that infrastructure sales marketing with of to

business sites front, point Sandbox Likely in launch and of major the League the country. these related at in boost strategy. will Florida further Once overall this Play to milestone preparing early revenues. the the are across U.S., expansion their On several an important we our the in which a XXXX, our operational, turning for we leagues rest they're anticipate eSports now significantly and as rest see of

for interest. a direct provide be as fiscal international coming we've eSports-related our revenue takes line. a will to zero hold, generated sales strategy sales in XXXX had significant we and Also, fiscal in MIT confident XXXX, years. our nice bottom Sandbox become a already contribution the eSports that and We're in incremental garnered revenue any up driver will ramps Since

this a geographic years. expect of as our So be in we well to the strategy part expansion coming

be a experience existing technology-infused not millions just designed now truly upgrades, We're integrated of on to everything potential specifically about here and plus potential and A our introducing both about just an seats applications fan talking could new stadiums venue we're suite product mobile advertising, excited promotions cupholders immense. for streams. to about exciting arenas. services drinks. These smart opportunities. What's to all Think into hold cupholders, the And fan that offering. the ordering Caddy offer very that we're our eCaddy sponsor-driven single ever-growing won't that be enhancing arena about revenue stadium of build experience with of is with from is opportunity pipeline talking groundbreaking The retrofitted and eCaddy really it. we're and about. They'll and

feedback finalizing be venues. as for from proposals sports will already key for executives Major arenas. in major Baseball now prototypes other tremendous field technology These submitting prototypes. begin design and and We've we and We're the stadiums received testing League select with

into stadiums opportunity. potential technology unlimited millions various tens worldwide. platform in will even goal of the The prototypes we're And hand, with nearly only with customers sports venues, deeper multibillion-dollar and of adapt in that engage potentially beginning. and the that's have target this with ability eCaddy arena and a we to with partners discussions XXXX. tests But our initiating Once of entertainment the offers for market tapping potential field seats

tools high-margin technology-driven can to engagement eCaddy revenue demand and the believe We generate it will only significant as grow. reoccurring for continue scales fan

In on summary, long-term have challenges, goals made significant despite external progress. our focused remain industry we and

Our positioned markets cinema as growth business eCaddy in and eSports legacy our is emerging new potential. like ever, particularly filled as are initiatives, with strongly and

about recent recovers as incredibly pay and way. look in you hit strikes, setbacks, our Hollywood to we ahead, the a still including excited forward key from off stages, As expect we're the early what's in we but to We're these updated industry we milestones. big strategies the keeping

thank turn to Brian. Brian? that, it I'll over you With all. and I

Brian Siegel

in with our the everyone, QX. earnings strong growth Joe, started profits attending Thanks, and XX% thank for you, solid revenue call. and We year

in year into largely transitional actors gross the This due a evolved decline the to which strikes, and increased. shift industry impacted margin beginning the However, losses second was writers flattened revenue non-GAAP quarter. as period entire fiscal our and

spending with a to XXXX taking X box customer to caused freeze of and time up clients our office temporary resolution, strikes The for recover to even the their took finalize in budgets. the months after some it

for and initial related we from theater XX%, by million. these a cycle of chains reaching purposes purchases testing products LEA from Drafthouse, for major for saw was $X.X our Revenue to QX. projectors growth Despite challenges, significant the momentum grew Alamo This upgrade the project and servers. driven in technology completion encouraging orders

was a $XX was year. revenue the fourth profit prior year, quarter X.X% from increase million, million. at Gross flat the for full the For $X.X

margin points seat gross to declined XXX of operating utilization. margin due order However, a well primarily the but basis low-margin, high fulfillment lower as large capacity as by

capacity gross XXX changes down gross points, margin profit in decreased the with year, XX.X% For by and basis full product mix utilization. reflecting

compared million operating operating GAAP side, to $X.X was to $X.X totaled $X.X the On GAAP year. compared last year. loss expense last $X.X million million million expenses

results our the year. from million in to year's fiscal $X.X did in Notably, last last recur XXXX. $X onetime operating For million narrowed full not year, included which $X million loss write-offs,

net last year. $X.XX per $X.X million improved to QX per to for $X.XX loss or million compared share GAAP $X.X share or

were and $X.XX share For per improvement million full and million in $X.X loss the $X.XX, and $X.X year, net an per fiscal share GAAP loss from XXXX.

loss was per per share net QX million share year. $X.X basis, last to $X.X million or non-GAAP $X.XX or a On $X.XX compared

For net $X.X the full last compared of share year, were million and the reflecting $X.XX non-GAAP loss year, per and to $X.X absence loss write-offs. last year's $X.XX million and

Looking ended at continue with a shares $X.X equivalents. to return total million we fiscal cash Despite of the program our our shares shareholders, the repurchased. the year industry cash headwinds, year XXX,XXX value million during buyback we approximately to balance and with repurchasing sheet, in completing X

revenue million This threshold Looking annually, across mentioned year $XX fiscal our to levels in of we measures included Phil expenses us we earlier, streamlining fiscal of rate will the achieve $XXX,XXX lower expect as help by 'XX. compensation this took million ahead gross company. realize all to margin. to expense These on run at breakeven about proactively of $X.X actions depending approximately to and a marketing XXXX, reduce

profitability. Additionally, achieve we EPS the we further share our will buyback completed, enhance once program

year, our advancing In we strike remain summary, are of focused many behind the industry which growth on impacted scenes. progressing this the while the initiatives, broader

any for are IR For that. continue follow our strategies our to month, on encourage an well the X, releases will we and we through earnings iMage keep developments unfold, growth site news. updates press plan next providing our milestones upgrade to where we announce integrated or eye at our and Moving us so on over you Also, orders as key committed investors, out handle emerging at calls we as to to

accelerate general, on XX IR heading into In better XX. Micro our of will Joe Main are the the at we calendar and LD end event feeling I year and plan to October about activities. be prospects and

the attending, through we to contact happy up conference directly, encourage be those For or me I'll facilitate. meetings portal you and one-on-one set to

us during joining are today, forward questions, to for our again look speaking we are Thank call you and you next November. in any. ready we Operator, if with for there

Operator

conclude Therefore, and we at this And there teleconference. today's time. this does no do participation. [Operator Instructions] for thank your are We you, you questions thank

time. your disconnect may this You lines at

Moving iMage (MITQ) 27 Sep 242024 Q4 Earnings call transcript