Earnings call transcript Q3 2022

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Operator

Greetings and welcome to View, Inc’s Third Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. [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.

begin. may You

Samuel Meehan

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

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

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

that a could please we many statements, the of refer our update discussion these no forward-looking of to after results expectations. actual includes from obligation our for which factors forward-looking statements cause statements our performance those discussion today's call. actual uncertainties, involve are As from and risks beyond forward-looking cause These forward-looking These and as press undertake company's to could differ apply materially materially and control release to to statements differ statements. our today, of

actual a today more SEC differ, and X-k. website description factors Form to of earnings please SEC certain For file with could and detailed our on Form posted being release the filed results our refer today, with to on our XX-Q the cause that

remind discuss during to you like call we the will I also performance. would certain to related measures non-GAAP that View’s

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

Rao Mulpuri

you I'm very Amy we go and for business. of address remarks, financial us the earnings proud last joining thank as outlook. View track Samuel into all In our on the the our details team execute year with the continue prepared pleased will full I'm on and since developments and XXXX our Thank results growth quarter call important I'll this of to our you, performance afternoon. our for View’s to in call and

financial been scaling through need our in and At and our also a period for the and that products. our a customer difficult and base loves XX a uncertain level, products, to we've years amazing picture technology with macro We've last big capital markets. year restatement, an environment a operations, raise spent building difficult serving half the

This impact the company the several credit. in namely ITC, financing business fronts, investment profitability. View the XXX% With the taking getting and to are growth, place, pivotal was to capitalize of all decisive quarter tax continued now for focused we're actions and on on this revenue

the from particular from revenue contribution on and execute our we lines all Building growth First growth, our to trajectory momentum continue on product Smart strong Platform. with

$XX XXXX. growth, of which compared and For to sequential growth QX revenues we're represents XX% XXXX, XX% million, QX reporting

While and about the real customers estate industry we in confident uncertainty, is and our the tailwinds secular industry our adopt products. going to through continuing change the feel

achieve the guidance our a quarter revenue full the – in million across upgrade are our need sustainable, smarter. key revenues healthier, This that range this year. company momentum remain of and expect We all in is million fourth the experiential, market buildings build $XXX driven $XXX for the by record year and occurring to track and of industry's XXXX segments on more to to

convertible We $XXX raise capital financing. of a completed the onto sale Second million notes. through

we know, this As due markets being of the out and over couldn't you access a markets to last the restatement capital summer. year locked the until

With value to to get is to the macro our tough, capitalized in continue well financing, While to testament created in path and profitability. we've the this environment continued growth environment execute plans business. capital this a we're to raising the

estate our New to actually Equally York financing accelerate investing look exciting our a assets financing partnership estate with we with industry. business. forward excited We're is with of real lead apartments. customers transformation that real investors. strengthen over prominent to of multifamily RXR, of portfolio this RXR the It's management was them billion the developer X,XXX and $XX under strategic The led our and to estate over this importantly, working investor real are in by in the

the of were USAA smarter, that I'm forward Strategies by our pleased Real the and perfectly. a excited Paribas has a deep other real of of to Funds the mission and moving Scott for in estate estate this believer Asset change financing, ecosystem Estate, industry with our Group real announce His big along also partner joined for Anson Board and strategic BNP Rechler, sustainable more to the welcome of knowledge better Directors. I'm in positive Scott the ahead. Management. to estate journey and Chairman couldn't industry building Scott View View’s think of and real CEO better, the in RXR, Environmental is drive investors brings buildings. match team experience

about and let's signed Windows the talk The Smart a ITC The interest. the moment expected windows, of ITC smart Inflation for to catalyst now installed The we that same a of of for was widespread eligible tax importance to energy cost as a of ITC. to storage. of and game solar Act energy in tax Reduction Windows window. of and the the drive View XX% Smart credit the wind, on in in adoption Windows law as August new increase to we the conventional credit, for Smart is are alongside and Finally, and massive same seen a recently Smart for includes our adoption Windows. have into now this the do net XXXX changing be the solar, XX% dramatic fully legislation expected property are wind, a Smart customers, the was customer Windows. is cost

of minute on ways. take it critical in the fundamentally ITC bit business deeper as is three impact a our changing into business go Let our a to me

and our they've we've First, and proven on customers, the team has demand. upfront In been. acceleration View friction remaining was mass now is since premium. moment. is the in incremental a product that the last rapid capacity ITC remove capitalize busiest adoption market ITC, expected contracting to months two customers, to place and seen to The the ever and infrastructure our our pipeline, to in leading this on investment a

real to construction industry, order change structural estate has the in significant the the Second economics. required upfront drive infrastructure. and and on In capacity our business industry in investments unit

create reductions. unit place. ITC know, loved in ability our our we're significant fourth ramp support field product increases our fixed investments on costs model, already to and are large in our we of visibility you investments also accelerates well customers, in leverage volume scale. we've projects execute earlier lead estate shipping economies very have by now resulting key capacity. business massive made our upfront in and These production The As is in cost generation that to long geographies item achieve in the resources real

revenue product of operation. delight components deliver Third, the Building Building from Smart We're Glass solution and profit dramatic Platform, customers sell This seeing with to to fully Smart a beneficial system Smart time where categories, you at and also at Glass, let's building. digital create to following allows Platform the ship capture a And for and we Smart as Smart project. to scale a have more Smart and installed customers from know, as about per This Early used talk three window is Smart our acceleration a us skin Technologies. Glass full providing we last year occupancy to gross Building users the smart the product complete Building we shift mix. a is we started our Platform more of ITC. upfront the the to which

by our growth, summarize profitability it View’s and only increasing demand, expanding turbocharges and economics top-line smart ITC also but gross To not accelerates window improving unit adoption profit.

ahead. journey let about Now talk our me

profitable year we loyal expect the top product, range and full pipeline place View $XXX and growing tier a million growth. to significant million $XXX a Today market has capacity of milestone customer for base, a a in the infrastructure backlog, in XXXX, For and to the revenues leading top-line a company. support

targeting the in to significant ITC, we're our tailwind revenues With double XXXX. from

Importantly, targeting positive to margin gross we're XXXX. in also become

over you. With that, the hand I'll cover Amy to over Amy, to financials. it to

Amy Reeves

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

non-GAAP stated, refer in we non-GAAP press comments my unless note non-cash results to started, the of As release. stock-based expense. please which operations, to reconciliations get otherwise exclude refer compensation Please our that

$XX Glass, year-over-year from product across XXXX we which increase including QX due growth reported For of Smart all Building XX% million, Smart and Building Platform, quarter, the represents lines, a to Technologies. revenue Smart

the million Our year-over-year represents of XX% $XX revenue increase. year-to-date

and QX factory. XXXX delivery production decreased year-over-year a Our revenues cost partially improved decreased of and new associated in recently factory Building from revenues Platform implemented the X% the of accruals driven primarily initiatives non-GAAP with management, offset requirements increased costs inventory in the QX in by higher loss cost Smart higher savings contract by XXXX,

company's the to Building costs fixed a as mix percentage Cost growing revenues of favorable to revenues product. the of benefit our reflecting of continue over and shifts revenues Platform Smart improve manufacturing

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

in strong our milestones as our margin We progress we the and through in expect towards to gross continued see forecast we revenue XXXX. of profitability remainder as XXXX growth leverage

development was driven of operational million XXXX. attributable expenses, XXXX savings R&D This XXXX, a QX in research initiatives charge of in efficiencies. non-GAAP decrease and completion realization we focus The projects $XX Turning XX% expenses to operating primarily of incurred expense View from was QX $XX.X reduction decrease depreciation in by decrease a and in the one-time on remaining to a following as the million. QX cost of

generation with We call product, and and behind ramp well in Smart continued as of discussed Building Technologies the Building our our spend. we R&D non-GAAP the our Smart as new of anticipate As a Platform, moderation of fourth our earnings launch launch product offerings a last us.

relatively expenses, than of We which from SG&A was $X million million flat non-GAAP increase XXXX. a QX incurred $XX.X with in an less

the largely the compliance the infrastructure of our XXXX. in to as at the maintain non-GAAP grow expense to public continue support remainder business, this a and year, percentage company and for of place revenues SG&A our and As mentioned, is Rao to decrease expect customers in we required

this to we and our have profitability our we loss, over This reflecting towards million to $XX.X progressed leverage accumulates in the compared QX grips built revenue XXXX, a million a As infrastructure the [ph]. XXXX our QX $XX.X adjusted EBITDA expenses of quarter leverage milestones.

improve first our of cash last of half XXXX. On operations burn half our million. second we would the call, used total earnings year, the in in that the anticipated During said cash we $XXX

improvement and growth from the cash realization leverage burn –or this capital as This to efficiencies lower by improved management, decrease of restatement, compared are QX million higher in cash followed the pleased $XX management. We on increase operations by reduced leverage year and $XX administrative the that cash in savings was capital revenues, a and the used the XXXX. focus year million quarter, used half significant used remainder We the used the from in in general to the certain in cost to in of report third as reflect driven spend, of we operations cash working that of revenue completion anticipate our working continue operational and and initiatives. to first was

of Rao stated the call, profitability. at are business on start As the XXX% the we getting to focused

We namely a dedicated have and to customers keys realizing focus on the in the operational scale efficiencies to targeted committed projects, and management. the top-line revenue infrastructure our our economics capital working and and with we execution, right to growth, with our support place finally, are factory profitability, growing and

With questions. that operator, open for we’ll

Operator

a Raymond you. go James. first of [Operator from Molchanov question have line with ahead. We Thank Pavel the Instructions] Please

Pavel Molchanov

taking the question. for Thanks

what as profitable. game about, plan, ask first me obviously which becoming recently mentioned is the Let you

should positive end that XXXX. gross set margin You by turn the of

of expected, time EBITDA as what anticipate the is happens turn amount to additional that you positive? Assuming for

Rao Mulpuri

Yes, Pavel. hi

not timing EBITDA some of guidance give context, positive, helpful. about but let you we’re giving me So, the precise that’s

going quarter we about G&A we from public to we’re on needs, reduce mentioned out, pointed a as prepared and So, sales $XX based to unit QX continue right as OpEx burn to as million, remarks, $XX based we manage run of our on to or the economics unit in the and on course, the properly cash R&D in the expect the size economics improving company path, ramp company. significantly reducing needs million to to about revenue, marketing march to QX revenue Amy we our and

continue And we to cash get better. burn expect to that

not sequentially So path the in get have improvement we’ll gross also better. we but but only see in margin, profitability. the bigger it the bumpiness to should Obviously picture, quarter-to-quarter, do continued

capacity. And this factory of margin of next remember, positive So, and set milestones. full at for capitalized our still well be a will achieve year we are we gross when its fraction next

more we costs, we’ll So, those more that over still have fixed and units. amortizing all be

at will, So that if a point profitability you once we pay turn margin year to hit think gross away, crank we’re profit we quarterly next of starts the on to positive the that getting because to one basis, OpEx. for gross

also way fixed can and made is be fixed our to incremental in gross our and about and form factory the revenue those to they’re is in the of margin. we’ve form think costs, upfront significant the business investments in of kind every OpEx, in so investments And costs but of, dollar accretive

And crank gross more so we away do that after one positive. to anticipate be margin it’s positive EBITDA that

Pavel Molchanov

Okay.

XX% the as margin from a Given you your of about kind steady remember the not curtain process number. I fabs the up just realistic? are fact the has billion. about gross run a the margin you So, that long updated were that profile? you Inflation long-term thinking wall XX%, state stack from Act the still the and talking said $X Is gross in Reduction plus billion revenue doubled to $X annually full panels, What’s the potential selling

Rao Mulpuri

inherently to gross our now, components. gross of window being selling parts. kind say capture coded system dollars have had, we per since revenue we’re unit an a window profit, we if than let’s question not you foot shipped, slightly or full in will per just Yes, more lower efficiencies profit. just sold plan pure to building buildings no margin of but a be piece I and about technology reality, to or shipped a because more have square still has lot the a in expect it, a the absolute lot built and But of, full mean capture system We per

guiding not at that moment. of we’re So, this percent the and

Pavel Molchanov

Right.

to subsidy credit? United produced the way tax Okay. Understood. will glass new the U.S. the question U.S. will of is that a coming offered year. competitive be in My from next landscape the third that trying you Do starting market about as be outside into that of, because States electrochromic the chase anticipate

Rao Mulpuri

of manufacturer market. of manufacturing Well, do U.S. coming least currently, from as or components and don’t the competitors, some planet, big proving foreign business. to good on for that them the they’re way I a moment, share see at at window We clearly for But commercially based that that’s people, some and proving the good we’re U.S. great it’s a smart viable we’re it’s have at moment. think, our a We elsewhere. is have anybody we’re the a

I’d people should be can interest more this be more disappointed interested. you as if there in space. So, imagine, aren’t

the and technology, we’re this you naturally move world think I the So, take time room for resources. dumb be build paving build windows the more Windows the build into way But Smart there’ll for the operations, to players. as to to like know, to field businesses

this this why been several doing taken and the this of for years investment effort. kind capital last mean, what is is we’ve it’s and I and

then energy Smart the a as So there’s written the to credit, such properties content. have would Inflation have in but component, and up which all somebody base just domestic for I additional XX%, would that. Act catch think Reduction to a investment to And tax be law for but not credit for Windows, XX%

domestic we So obviously as manufacturer, qualify. a

foreign that. to a obviously if manufacturer for they So wouldn’t in, come were qualify

located. there’s then depending another for energy And on they’re XX% properties where

So, and for to have into I time scratch somebody of But technologies bigger scale. to the they’d start answer domestic disadvantage your being much that think, content. build have from XX% question factor the would these it is, the

Pavel Molchanov

talked the while. getting home footprint haven’t this a for And you about residential looking Are to builders? what’s still establish we lastly then there? on so, residential the timetable And opportunity, for if a with

Rao Mulpuri

single we of desk campuses, a home? including sales build-to-suits build, do in it’s and can it’s renovations office, great into or get most my you and probably spec question, course did Then well we’re in not, incoming you know, started is cities. it common we’ve major As office we’re and now doing the Yes, and believe we airports known airports. corporate traditionally in our

We’ve our We’re now a smart in can and the think, build without States. multi-family. United fastest And hospitals growing right about airports today is don’t XX airport window. across segment I modern a you done

glass So XX, apartment have XX heat a views of they kind and XXXX story glare. but have towers XXX of and units, which theoretically, XX, incredible has, issues a they’re you imagine can building great XX, to

brilliant environment, customer we the residential And our with we best so is way a deliver a actually our way the for we like BXB base that in today, contract our and the a what product, the way found product, engage product we our is business is suited support. sale

one be of of very where in the moment quantities site, a can to for that’s into And we wouldn’t so focused from view, properties, single-family on primary point and although reason multi-family, it’s product our a think brilliant staying wise brilliant it same the in profitability. large path single-family a we’re at home. business large We to going yet, deliver is

to at up harder, our profit ability We’re will just not the and jump think we should I be set single-family capture into moment.

residential, gaining then, those we’re window. So with lot the all with and reasons that app interacts learning for of user then the way interact a the humans behavior, on

we should a a and BXC single-family. there profitable with But the to stay port gaining So, window help without and how environment with the business build single-family very say easily able of plant engage be ton electronics engage into we app, the have that’s over learning say in fill we’re people that in touching to tuned a residential. and this and I’d I going

So segment for on get but focused multi-family actually residential those moment for all someday staying us reasons, as ready the at it we’re a helps single-family.

Pavel Molchanov

much very Thank it. Got guys. you

Operator

at are closing floor back to this for Dr. Over you, to to over sir. There like the time. Rao no turn comments. Mulpuri questions you. further Thank I’d And

Rao Mulpuri

the of View call Thank joining we’ve today. so and accomplished you team far. proud for what Extremely all the

key and capacity and have growth and scale support the and business place the the to an our inherent that’s industry poised milestones look we’re again efficiently In in forward and moment targeting our we’re call. from Thank infrastructure and our we QX of you. as for in for business business leverage achievement to our XXXX, grow at all growth. the tremendous in to for View benefit customer incredible We’re the you And XXXX, on we talking profitability we model.

Operator

today’s Thank call. this Ladies concludes gentlemen, and you. conference

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

View Inc. - Ordinary Shares (VIEW) 8 Nov 222022 Q3 Earnings call transcript