VIEW - Earnings call transcript Q2 2022 | View Inc.

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Operator

Good day and welcome to your View, Incorporated Second Quarter 2022 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Samuel Meehan, Head of Investor Relations at View. Thank you, Samuel.

You may begin.

Samuel Meehan

welcome QX and earnings everyone afternoon, to XXXX view's call. Good Relations Meehan, Head Samuel at of I'm Investor View. with here I'm Dr. Rao Mulpuri, our CFO. our CEO; and Amy Reeves,

Before a to closed we QX like that results. begin, market after, XXXX remind financial today, release press you issued announcing its View I'd

access view.com. press section this may in the You Relations Investor release of

those discussion would performance forward-looking could cause that to like includes discussion to to today's you the factors materially please refer that I measures performance. our View's call, discuss company's of actual forward-looking press to remind As we statements, related release also certain differ from for statements. a during the non-GAAP will

You GAAP can the over press these measures the of Rao, measures to the in reconciliation nearest release. comparable you. find to

Rao Mulpuri

thank earnings all for you us and call afternoon. joining View's for you, Thank this Samuel

our the of we've QX briefly remarks, on business, passing market our results. and and in with is and results on customers, made through that I'll fundraising the the Congress. currently the QX importance our provide Starting recent federal finally, development legislation commentary our was announced progress prepared During describe and

the QX of $XXX we're half For XX%. to $XX in $XX growth XX% on in year-over-year track million of revenues million $XXX to the to XXXX, achieve of of million. guidance XXXX With that $XX million confirm to our and reporting second range we're revenues range million, representing

and traction products. our is by cloud repeat both Our healthy strong of driven being ASPs building conversion, growth smart platform customer smart building and business,

made in XXXX, and customer the well including $XXX to and particularly scale infrastructure full with inherent building be support as Our fixed in the model, We've increases revenues a in of are the only leverage stack than to we vertically starting scale, revenue will investments, capacity. business we deliver sales infrastructure. integrated over a able half as already is high-margin deliver driver the and capital full we of at as $X at fundamental equipment year. billion business incremental see In requires this of in grow and we're product. of At costs. our This more million as capacity second investments business significant technology

we vertical. customers signature with market-leading a installations reminder, major each in have already As

growth strong increasing healthy and pipeline repeat Our by driven market is awareness behavior, backlog. broader purchase and a

in investment the Act leads While we also great development climate to climate exciting continue represents on country's And by U.S. new windows. in largest on and front. you technologies. we of policy a the related I its want impact The energy potential the effort smart front to change and been XXXX security single with legislative the ensure Congress in make to the adoption, progress solutions. share long adoption also applaud has market climate of change Inflation Reduction on leader change tremendous The to an country

energy and the use the as Specifically for XX% retrofit to of is of the country an buildings new Improving with installed been the and capital office, commercialize industry and will energy-efficient modernize of develop Decades care, invested the of have to credit. cost in the windows in of buildings. the across research education of and with as proven emissions years to already the health impactful energy benefits. envelope is reduce smart usage Smart significant same technology a windows energy sectors been most U.S. and build and highly windows glass and energy emissions. transportation as reducing residential, such to View, also smart windows create ways coming in scale. the of There drive been do will smart adoption opportunity buildings. of make consumed has solar the and and one windows are largest energy expect sector U.S. the smart smart represent manufacturing historically is same all high-tech, existing expansion we part ITC to catalyst massive the buildings American tax included for significantly Buildings Faster smart footprint traditional windows while massive a for This of widespread And with carbon investment for windows. to wind. high-paying ready technologies jobs. the to adoption have

spoke let on Now, cash in end substantial to reported financing. update on equity we've our have better been working June, stock an we give common we million while to diligently working period. me balance that to no a $XXX into financing progress management. of spend We're additional we our on burn drive and QX the next capital under we've million lower entered committed you net G&A option on sheet. of in revenues which with the making over a announced XX-month View up cash and raise. debt reductions $XXX higher sell of the We XXXX, in Since through half cash at last XXXX; capital Today, you second facility we of also

update Now, on our and customers. an market the

state are As spite for the some is a growth three for high of well going In in economy positioned is through macro also flux, these reasons. industry estate the real volatility. of trends, we

we're First, experiences of driven health. by focused secular industry sustainability, user transformation the and digital and adoption on trends better

market of major very all real And are broad smart we stages what vertical a the adoption? verticals. third, estate Second, across customer the base early have glass

some around you each give I'll of the key Now, context verticals.

to Let corporate office. me turn

increased there is healthy, on life of are biotech more than expected want experience the than employees growth office, Biotech have about that to. X are to In growth. high buildings anxiety doubling return designing sciences, to double next Science private federal companies the to XX in While and years. some experience into funding to to inviting rather wake Life that in down spaces especially office the pandemic continue and the

tower to key science foot Trade, and happy of Boston. recent life the square have flagship won in World And buildings. several win science XX-story, XX We we're XXX,XXX a life announce office

new existing terminals mission. airport the in core targets is this major United Every terminals States actively sustainability renovating airports. set to turning and has around Now, designing and

Additionally, Dallas now View and Memphis, Charlotte, Fort Phoenix the San experience. U.S., smart In being is the windows LaGuardia, including Airports. than enjoyed O'Hare, Francisco, focused are installed on designing windows View XX more in Sky Chicago to a Logan, QX, and Seattle Boston Worth industry in Harbor terminals passenger we airports major at smart few. name

building Residents Kirkland in buildings of Bond experience shortages million buildings, the the AD Boston, heart Seattle about Now, this including in in I'll Amy rents evidence Greystar multifamily you. has and and enjoy power multifamily Ontario, let currently over significant into Amy, in over With residential the health been in complex for Park in View owners. York, sector. Virginia, the installed have and me we Atria in it value New by we And particularly and lease-ups several feet that by hand designed as Multifamily Exo square over vertical. and talk sustained X.X to the And high-rise a expect XX-story to of development years faster multifamily growth results and next higher benefits see View housing strong is to windows. a of strong that, the to Sven, cover smart Canada. Dresden, persist. a financials. over

Amy Reeves

and for XXXX. the Rao good financial QX you, afternoon, results I Thank be will everyone. covering

and we and the due are glass to expected smart half million in produced projects offset revenue X% technologies building timing of mostly XXXX of quarter, For that the QX $XX revenues. building a of be to shift year-over-year XXXX, by which from platform smart represents higher second reported decrease smart

year of first $XX XX% half our to million. half year-over-year First XXXX. And in revenue from of increase represents $XXX of million for the range XXXX full track $XXX with plan on the revenue a we are of million XXXX

revenue higher by levels reserves. a cost year-over-year levels and inventory The of from revenues, lower million building of revenue reflects in loss higher and expense, of of our yields, new following the $XX decrease Our XXXX factory $XX the with product of in QX XXXX million, cost increased smart of compensation representing levels second contract accruals, higher platform stock-based half decrease. decreased mix factory scaling higher costs associated XX% to lower of partially the costs factory offset

a percent significantly margin year-over-year. as improved of a As gross result, sales

We in of strong expect to see forecast to half growth we second XXXX. in continue our as model leverage the

million to digital in XXXX, XXXX. and from decline View research QX industrial remained a well of X% accelerate network expenses. operating $XX buildings. as investing QX in costs the the in next-generation committed our panel smart product, our to to Turning and We development about including as transformation incurred window technology of

audit product With our of and launch offerings smart as as generation to attributable of prior million we in $X behind QX building accounting administrative and of with legal was a expenses $XX an moderation restatement from statements. XXXX. new and primarily consulting, us, $X financial We increase expenses, the platform of general technologies half XXXX. of selling, and building million our in second incurred the associated R&D the or and This smart XX% panel the spend of anticipate well million fourth increase period ramp

restatement conclusion XXXX. will financial XXXX. the in expenses of Form from QX million With in quarterly compared our be of of of accumulates the following expect This and operations a $XX the for to XXXX GAAP lower the to a periods, XXXX interim our report loss XX-K filing our our QX second million G&A of we $XX significantly loss half

in compared to QX QX $XX $XX Our loss million net comprehensive of and in GAAP XXXX was million loss XXXX. a

cash used reflecting in activities financial outstanding, related a as XXXX in shares compared of associated current expenses and Our million was XXX Net the for restatement increased and first as offering operating of shares. million expanded higher costs half work. with $XXX of incurred well half product as to capacity factory first result million is the the $XXX XXXX,

through cash following reduce half unit said economics. working driving management, have and completion before, spend anticipate of the improved of the we XXXX in factory we administrative the restatement moderate will second capital burn higher and general revenues As

additional the have to to million. equity earlier As are we sources facility for Samuel. our balance committed Rao With back I'll in mentioned strengthen $XXX pursuing secured capital pass up call, sheet. it And actively to a that, of we

Samuel Meehan

you, Thank Amy.

from questions portion begin the will some we've call with investors. We Q&A of today's consistent heard

at can e-mailing submit View Investor Relations you ir@view.com. reference, questions For by

home Rao; grow you The Francisco have about question is for and sector getting New concerns San hit. in the Rao. like York from to office the backdrop? questions macro first work able consistently Cities hardest trends. and we're is with how, this been of you, softness Rao,

Rao Mulpuri

a the But Look, this a play X from beings. days social specifically, them culture you the reality people publicly thrive. go that out of from single over. and an business think X box to a that to employees. as doesn't of its sense belonging are can't want you among at innovate, need of The is they create Yes. are the for office to to And truth And fairly home more about connection debate continues is a work to moment.

I'm So very our they leaders where business. what that hearing this for to go want thoughtful create than have want environments to rather corporate people is bodes from corporate to go; well

the of secular new and macro of to of on, this we may this is is are particular still the trend there's macro plenty very be View all. really environment, While and depressed, shine. spite going first In where builds renovations favorable

Second, a We environment through remember, building leaders software the sense, the inviting actually for their tool as more to and fact, are corporate work employees with their corporate continually experience to for sell their better, engage create a employees. material. static and don't of In improve we health a in product a a our apps we and with employees. tenants

big spite of trends exactly questions the better in the leaders macro by reason, play. that that are creating the driving remain corporate industry, secular where in and is facilities we for that the So

Samuel Meehan

where gives Rao, What multifamily, the in View claiming and you've you traction on in commercial you traditionally, growth much can segment? is focused succeed sector. more confidence been this that And

Rao Mulpuri

Yes.

highly So View is building any really. beneficial window in

the in is started in product journey cases, While and the connection in getting projects a York, real real et segment assets. the we new residential in faster residents. apartments and now our and owners we initial creates decision-making and and user. commercial many multifamily And doing The commercial delivery us higher rates. of own commercial estate segment strong to very New past corporate for learned the see app, brilliant couple building estate companies is same the that the of very residential over estate, similar leased we with years What the are that engagement the and strong real environment through emotional fact, our are with is in cetera, telling Boston,

with we're So premium this about View. segment. severe that's very, they're in And the with this is excited growing to very able be cycle. of And with shortage to underwrite this a housing, very the resilient going segment

Samuel Meehan

And you. Amy, the next question is for

comfortable the How in the you that And reduction half do last claimed in of quarterly changing year. you second achieve this? cash have investors burn get During to structurally this will significant this? call, are you a what with

Amy Reeves

a driving key There Sure. this. few are factors are that

First, completion we significantly half. lower G&A of second following in restatement expect expenses our will our do be half first the the

broad we chain the that customer done present will meet use to and issues the year. world year with supply continue this materials that securing today, our great our of a needs has team Second, in are job into next later to

down So And burn go as come half some half. the in growing to revenues business, did costs do unit great in given have thing result, result, expect And that we investments we of cash the our is capital revenues then, And go significant those in our finally, a up. that taper first this down working do a we year. the as our as does about in off the costs have fixed rapidly. our second

Samuel Meehan

follow on to in second achieve And margin half gross that, margin key the achieve stated the you've Amy, positive? What gross to you'll elements are next up year. positive of

Amy Reeves

Sure.

I base, rapidly cost financials. is and fixed As expected growth revenues in confidence And in over the XXXX our have a to we growing our beyond. said, accretive

the and that year. we've As expect to positive be we margin already achieve in second made we investments in with the gross next of half that capacity,

Samuel Meehan

that? do deliver Rao, be you you what need technology. that order and your in higher you hit growth very can have to do targets, volumes unique process to confidence to Why a appears ever

Rao Mulpuri

Yes.

long So a build this journey been learning our to the cycles. drive to capacity and has

years, learning And cycles, new technology, continuously volumes. it. as on So any now over been XX we've after process we've our with scale-up last growing the successful of working perfected improving the many while

fourth we've And to our to improvements product. in Second, we're product. a made significant mainstream now get product generation

mainstream that The We for ramping. line is have now specs manufacturing things the a elements easier. And we on ramp the and out that locked, product drive output the impact have With uptime product becomes are speed, much a yield. like things handle good that key growth.

we with investments So customer we demand make. continue very we've the meet already made to being improvements about able the increasing and confident to feel our

Samuel Meehan

clear it’s needs Rao, And the company soon. additional capital

how generated, confidence you being markets able funding? public raise the are be gaining you With will to that

Rao Mulpuri

raise have not moment. restatement in after raised a We the is started the at important on of would thing we this this Yes, process most to this restatement, conclusion we're the working the ago. long the capital If for capital June. time

of While is the positive macro environment tough, us. View has for things lot uniquely a going

of is decade and have points with a customers our after First, scale that transformative that on in large creation R&D, at product a proof doing projects. very great we value producing

to this revenues in forward you to And significant years company the get that. the we're at scale. made we've $X investments Second, operations of our billion of to about year, XX% over as projecting know, be

still is journey have. that we front with of XX% in the already of us footprint So

the we're favor secular exactly large trends delivering. product a the and have We market

credit process at investment a in of Congress. what that solar with of panel. similar good. sight and profitability. expected So demonstrating importantly, growth as today, conclusion to also investors. And a strong for eligible We product get for market our the credit our the be we have we're represents is timing to And is feel the in upside huge is you this to disclosed the And the all very tax

Samuel Meehan

Operator, to you Thanks much. call so Q&A today's portion may questions. We're the the for of begin now ready open call. now

Operator

And with we question James. Pavel Raymond take Instructions] first do [Operator from our Molchanov

Pavel Molchanov

line; a gets assuming across Let to me choice you the with the have start will it finish reconciliation bill, make.

the can price the this some let tax margin way. you that drive of the entire the customer How demand the sense and in credit credit tax kind making you choice? your capture raise product or capture could for are thinking You of and about

Rao Mulpuri

ASPs prices around happy Today, of a up. Pavel, we customers value, margin initially, time, I And to to these how thank rising able to ASPs been discounting or were by priced scale. the our more. we've us and events. pass very types our react our the you have Yes, mean, realized ability it's great product we're make of on question case, and way their over In our as for lower market. us they've impactful an to always our our businesses with benefits of some were to at

to primary our focus our produce is So very and for we healthy. margin costs us drive the so down that a ASPs great are

How Now to see margin will our that as expect to financials. first hopefully, does ability of should become is, customers your easier. tax impact much now take this premium the because to how we that question, with us credit and thing now gets this and be shared underwrite huge a advantage this opportunity much their to the implemented, as of see our

We serve more good capacity importantly, we'll make can modelled build here make haven't our you yet our to them out. to be able to as is fast sure clearly, and But we serve need. affordable business as can judgments. imagine, focus as But product that and growing our to that is customers

Pavel Molchanov

Okay.

Let me turn to the balance sheet.

mentioned you industry on to any IP, involve also of that partner. the at kind might an patents, you plan and that with You of monetizing strategic Are table? issue. Is that equity you collaboration that selling non-dilutive to technology; any can some commitment upon selling options draw the convert looking

Rao Mulpuri

business our behind completed. the So existing Pavel, of customer with very ones them. our near-term a tons is we enjoy focus repeat they've already base. we've got And serve to And projects healthy

very complete a in there and geographies us #X we're built contemplating goal. demonstrate great in we potential or not economics, this them our succeed. that. we've the North And in those yes. as customers. it's time network this Potentially, At as laser-focused on future, to to engaging serve. this now, raise, team And you will directly build that right be we market. with But field, serving whether point, in and those for focus sell architects partnerships? our other accomplish the more in fantastic on know, market. current here our builders, to That's our capital And is working deliver we building of We're on focus help owners delivering primary we markets, And that American those the are So will directly serving markets on here and in today, focus projects. be customers with our

Pavel Molchanov

to, chain. relates supply I as Last to the guess, wanted thing Okay. it about ask I

We are in of What's you're is the -- commodities. that important Obviously, your that seeing raw purchasing. most some with glass inflationary material cooling off happening are various you glass cost buy?

Rao Mulpuri

Yes.

So seen at materials, as the already. those buy materials, and last inputs you materials, increases, of primarily which buy the into commodities some raw And cases, for plasma in know significant that have And two seen know, energy some raw we of the raw commodity are like some example, we high cases, and things apply. increases high as two. you end because in coatings drive we labor commodities in primary moderate prices we've year or the both purity

on economy And the don't businesses. order cost is is not does we environment in to a But -- even to broadly, other we our the percent seeing first down with commodities cost own relatively slowing of compete to the the that. reductions of as business certainly built low compared commodities. We think will depend I in And see there. And prices I expect is seeing we're already it. think of that. some our

So fixated two, on we're given those that. not really

headed not things purposes. us. understanding and where are planning for that's for of We But Pavel, major our start factor the focused first a to are keenly

Operator

turn floor Mulpuri I'd Dr. further comments. the this questions. to closing There are over time, Rao no for back like to At

Rao Mulpuri

the you today. Thank forward Well, look journey on call. exciting better. call for And in thank to to We're the change you the to world you. all QX an talking all our we for joining

Operator

concludes This teleconference. today's

participation. your your You time. lines may at Thank disconnect this you for

View Inc. - Ordinary Shares (VIEW) 9 Aug 222022 Q2 Earnings call transcript