Earnings call transcript Q4 2022

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Operator

Greetings. And welcome to the View, Inc.’s Fourth Quarter and Full Year 2022 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

pleasure Relations your at my Head Samuel now Investor of View. is to host, introduce Meehan, It Thank you, Samuel.

You may begin.

Samuel Meehan

Meehan, call. Good View’s afternoon, here Amy am with earnings CEO; Mulpuri, I Reeves, fourth to Investor Samuel I and quarter and Dr. at everyone. full year am And View. Head of welcome our our Relations Rao XXXX CFO.

a XXXX quarter like after market results. View issued Before and that closed fourth its year you we press to begin, announcing remind financial I’d full release today,

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

discussion As these actual from our factors performance a forward-looking that today’s release of materially differ forward-looking includes to statements. statements, please discussion company’s to press refer could the cause for

beyond materially and to of our These obligation actual update results our our from today, cause no to forward-looking statements statements involve which these control and and statements could apply differ risks These uncertainty, expectations. after forward-looking many undertake as we are call. of

description that annual quarterly report filings Form XX-K For including on recent with most of our a subsequent filings, our and certain the to XX-Q. actual more could results on differ, refer factors reports detailed SEC, please to including cause Form

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

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

CEO, Rao, over Mulpuri. to to Rao will I our Now the call over turn you.

Dr. Rao Mulpuri

us our details and performance and this call, developments Thank remarks, the In go our important all and will joining our will business. into afternoon. XXXX since you, Samuel, Amy highlights discuss the of financial address thank for you I prepared on our last

execution issued time I in of achieved revenues relentless the business. $XXX above dedication million did and year collective XXXX we history our the last am in first and to am company’s record year. The I very team a an job team’s the within View efforts, range report outstanding and View building guidance for our excited that in with proud

was critical year the company for notable with a several XXXX accomplishments.

a First, historical the manage a smarter. what field while are tremendous fundamentally make and customers steadfast and in underlying is this products is that importantly, partners create to hitting company, most chain supply and the more for capabilities, revenues manufacturing the milestone $XXX buildings service, that sustainable, million journey is to and in effort healthier

Second, moving products. to

We Our neutral on colors by our fourth opportunity be ramped well The going benchmark cover product for plasma growing industry of forward. by shortly. the will the new sector. and generation proprietary residential capitalize launched users more Smart multifamily our coatings glass Windows now is owners this large designers, the up. fully and in received will to and are residential detail buildings in produced I

greater and successfully This product View customers. the the seamlessly performance for ramped support real solutions with up estate Building customer of Platform, Smart Window allows We in a design, Building and offering. Smart provide cost our the optimizing and most integrated importantly, our best fully Smart control working ecosystem, envelope,

real estate, business We high our Building to $XX am digital to this of million in I revenue business the technologies, to SaaS continue margin accelerate Smart transformation pleased to in in that report XXXX. cloud-based innovate grew

field and to operations capabilities. within yield manufacturing, continue our improving chain supply operational efficiencies in our Third, scale and

We awareness and have plenty grow for we footprint demand of our drive headroom as capacity products. in to existing our

a included part Windows more the legislative The to on Smart as XX% infrastructure. credit. investment transition Windows win were the effort accelerate in Federal major sustainable a XXXX Smart a in had in View tax the of Government XX% provides now tax we our broader credit U.S. Fourth, as to to

business this is strategic company partners become that and a create we was the in who positive of thrilled change million looking have are a real completed $XXX in This our our capital our great in customers to estate investing are journey. we also raise are led and industry. Fifth, by great that investors validation

of note lending change macro real have and industry. of more that to and by rates, for that and combination and These balanced need challenging including important secular challenges uncertainty smarter. interest spite all all caused we experiential, are It’s impacts rising uncertainty markets tailwinds achieved upgrade of the the of lingering this in in healthier buildings View, build industry’s the are the The estate environment. in pandemic to sustainable, the

to key high desire to work continue Now and facing Office space pressures their Despite from employers estate this, and and renovations verticals. companies cycle. Further, science models footprint. labs quite see are market and the properties see we continue to quality that bring reassessing in strong required differentiated doing to is real turning repositioning hybrid are back grow see we to their employees to life market. and well this also buildings work aging continue we in of the

focusing View, is to States passenger sustainability very every the airport a On United major which experience. in for airports, strong on and sector is

continue projects U.S. San and across O’Hare, major to has Dallas-Fort Francisco, York and New airports, renovations LaGuardia, terminals Phoenix added ongoing at and installations active Boston others. We including and new View Worth, among country many see Memphis, being Chicago Charlotte the Logan,

facilities. across as become services the employees to ambulatory for installations care and grow to office patient and as are every Next, care this sector. signature in have in post-COVID well has healthcare and North is medical for well sector America hospitals, positioned important healthcare Sustainability, several we environment. continuing View leader own experience the very their build buildings

to a additional cities many requires of turning relative the that be residential in this multifamily Now States United to added sector, There’s in shortage capacity which shown nationwide. has housing the strength in severe cycle.

building last and excitement and seen year we have great We residential owners our alike. released from residents multifamily product

for and applications designed Our residential user. the specifically around built product engineered is suite a of the we setting individual multifamily

in example, the up, they View the wake gradually to gently wake-up start dark light. up Windows clear, their Essentially, program their mobile sleep time. sunrise. to View and morning wants users the can with user a residents are users mode their app. For waking recently Smart apartments mode natural in Sleep allows When day at launched predetermined until ready the cool we on keep to and

and are gaining this selected this in large market sector. largest Seattle, Smart multifamily project for in to-date several York. including of notable is area, project and RXR represents in View’s Hamilton Views Broadway we Earlier multifamily, the with Boston, scale We area, Windows Sven in mixed-use This important along New projects in and Green latest York New very that projects XXXX Toronto announced Vancouver. DC their momentum week, the

value that focused buildings. with to customers on our platform ahead, nationwide the see portfolios and want their in product are higher Looking large in differentiate key multifamily we vertical

high We redoubling the to friction, health narrower quality profitability. sales institutional focus efficient and repeat to reduce are business and our us customers care. A path our allows also on enable business more airports sector, of drive around focus a these notably

look environment, projects. tough to In XXXX, we particularly accomplishments some customers build estate last not the for delays seen year in Now real all have the our shifting and existing of ahead. uncertain. from And their is gears We surprisingly, to year. that on macro know our

already backlog we have of exceeds these revenues. XXXX that for committed headwinds, spite XXXX a In

about before, business is macro adoption. As our less more we said and the have about

We and have growth in a beyond. drive XXXX project healthy to substantial pipeline

point milestones efficiencies to the profitability so our lower lower continue recognizing fixed to that to breakeven we in drive uncertainty order steps we significantly markets, costs the can level. at the have and proactive achieve revenue and In a taken

talking We will coming on call shortly. detail QX XXXX be about more our earnings in up

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

Amy Reeves

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

started, note the my Samuel non-GAAP refer stated, get beginning results release. reconciliations that otherwise as of we the the call. of comments described in by our to operations refer to please non-GAAP unless As Please discussed press at

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

see continue Building We in business to strategic this transition to and Platform expect the in acceleration continue our towards XXXX. an Smart

a Smart are ago, projects quarter, not of the also the year fourth the project. size the we of but increasing increased For number Platform compared average we Building to only

For and driven million Technology growth, to $XXX to and revenue the of Smart million strong $XXX reported we compared million, representing Building in our full Building XXXX The products. by guidance $XX of momentum was growth our year revenue million. XXXX, in Platform within $XXX XX% year-over-year Smart

accruals, Our QX achieved revenues. from higher XXXX XX% year-over-year inventory lower increased in XXXX and QX benefited loss cost from of enhancements non-GAAP revenues driven primarily in revenues operational of impairments raw materials levels contract QX new by of a factory. our decrease cost for XXXX,

offset by and factory. year revenues was year-over-year driven operational the non-GAAP our in primarily efficiencies factory from partially which For year XXXX, full by XXXX, X% full of capacity, revenues cost ramping of increased higher the better our

accruals in from We in XXXX. loss also decrease benefited a contract new

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

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

taken. leverage structural improve lower the see to have our efficiencies expect grow in proactive margin gross our we continued operational our We we revenues, as measures our through fixed and costs

initiatives. and operating cost This research primarily of decrease million from by certain in the and projects completion expense XX% $XX driven in expenses. R&D non-GAAP of XXXX. incurred to a QX was View XXXX, of Turning decrease QX development savings major realization

these in continue expect We to XXXX. improvements

expenses, SG&A We X% which to incurred in increased compared XXXX. non-GAAP $XX million QX

measures We to take business of expect going lower the cost SG&A and proactive be expense continue lower to to structural the forward.

XXXX, revenues fourth of and compared of over quarter our For of adjusted expenses QX EBITDA reported the in million, $XX growth. higher an line top XXXX, we reflecting leverage loss to million our $XX the

year driven Last of million savings restatement million, operations cash by in $XXX following burn our in higher management, our of expense leverage improve in focus cost full full used the the to G&A year said we would on $XXX Cash XXXX improved capital XXXX. completion realization compared was second anticipated the the year, we and reduced initiatives. half, working revenues, from the for

used the year, half the During first totaled million. our operations $XXX in cash of

we significant half of operations cash reduction. pleased used the the cash in are year, today to report in a that in $XXX We XX% reducing of million, made strides second with representing burn

late savings in million. this reduce our breakeven in and Rao cost in savings point. approximately costs combined cost $XX reduce of the these took initiatives an actions year improve burn order cash we estimate actions and we have week, to other mentioned, As place, to result took annualized cash our will put and we we actions with last fixed When fixed

We in expect these starting half of our financials to realize second the savings XXXX. in

million we notes as our be we QX focus efficient cash and place, the through on to in ended to a us of our equivalents of In plans year investments. an year million $XXX with the our and capital sale With financing cash, completed $XXX convertible path short-term XXXX, savings senior raising this cost additional business will progress profitability. on an support and growing

that, will for Operator, open we With up questions.

Operator

line question Thank you. first with the proceed And Please Instructions] question. James. comes [Operator of Raymond Molchanov Pavel with our your from

Pavel Molchanov

for Thanks questions. taking the

start at least At revenue XXXX. when latest let’s the that reported, that? you outlook reaffirming doubling Are approximately or in you last on last with XXXX. about what’s you So year, the million today end the talked for of $XXX

Dr. Rao Mulpuri

Yeah.

the capital So, seeing estate as markets. relates are as recent in events said transition, Pavel, it particularly a go we in to industry our through obviously, we remarks, real

we significant our As But we revenues I than pipeline committed and XXXX spite a mentioned sorting in existing projects remarks, of we have our several we had greater projects. that, out speak. of XXXX customers in through is as push backlog of are our have

only So the the significant year, you come today we to that growth and come holistic time to also prepared a we speak. story back give more we breakeven shortly guidance we but be back taking are are point just today impact and do will that, expect to not yet, with of not significant the range we a with XXXX next a reductions

Pavel Molchanov

on of That’s same And relates is about by be to question still guess, or a gross previously the as talked I to determined? table that the clear. XXXX, Okay. positive end getting margin, to about margin you it gross

Dr. Rao Mulpuri

we our and the business, with in actions customers actions are grow goal. our are Yeah. are lower being in can prudent the macro, serve we our our taking, invest point. obviously, And That’s will we recognizing I you committing Those business. our but breakeven how to tell we

we back same with the speak will next to the So I will we come be plan anticipate the the lower milestones have, remain you hit to you goals should that But than when profitability time. details our levels think in past. we we more new at the lot a with revenue and able

Pavel Molchanov

Okay.

Okay. That is hear. good to

in this non-sensitive compared verticals remarks. to the certainly, your building you little bit say becoming all economically kind and the a traditional multifamily resilient office about to thinking or of of the of touched the that most So Is on market, it space? fair is

Dr. Rao Mulpuri

Yeah.

need post-pandemic to A So, people downturn, giving office, will question to back came as of and economy an the that anticipated took there’s capacity think, put everybody space. market it in overcapacity of total with are demand. second, bluntly, come actually I now it office lot right say is for not probably, companies the so mildly and number back, a the one, everybody up current

But as bright are some mentioned, spots, continue. I will there renovations

the reposition, XXX only built energy need up. For And there’s need then renovation have one existing also being even with there’s every to buildings penalties and do new business. a but the we people of coming are deal building resilient not to and in that upturn, for some repositioning a

part that of think be will it strong. we So

strong. As and enough general, of residential science shortage trends, I is in deliver is and a macro those to terrible. life there Multifamily built in being of overall not example, to urbanization. homes spite office are But broader for mentioned, the housing is for

projects see we feel with interest the will a to rates That well in and set pipeline next built. that we where real being built and be projects positioned But of have will access you this environment segment and funding of fortunate haves sector cycle. customers will that in have So estate. likely we and will have-nots too be the multifamily are built and these

Pavel Molchanov

you maybe Reduction the said back And Inflation Act. Okay. then, what lastly, to regarding

that to construction tax is the of credit that Is for, fact facing? tax pretty reasons, of obvious may this for be are will one credit it the prospective clear. more difficult that of impaired bank customers lending kinds would headwinds product year they monetize is the that make initiatives eligibility that for the all be the So for we eligible

Dr. Rao Mulpuri

think so, Pavel. don’t I

gets So, built is first not project our above or take of all, whether rate. a it’s

amount So, have of go Y to they let’s of X get say, and million project, debt. it’s a amount $XXX equity

they best multiple about in rented sense, an still does once building the gets built. rented there be not rented, rented, that, that have at what There’s the But in it best either given always but or and rate rates. any may get market, being buildings only at whether the building anxiety gets

about credit in last in to to some is than it put have are time, the people and ways for allows So looking essentially what differentiate the tax cases as owner amenity for might we have cost they lower does talked with the same this would traditional windows.

are they So we to at build are to the going a extent a building tax positioned from of well point credit all, view.

operable, The other office wouldn’t the has as for evolved. transition engineered couple know, has been have able doors, this residential product multifamily, our right, over make of product We itself years should to doors, from last that the mentioned bifolds. thing to swinging not if fact of, is, terms the we we in have sliding you

power transfers that. We have for

an finally, in where consumer central located versus the the setting the then controls are run windows, ability in to the electronics and have apartment of apps. We terms

experiential be of apartments build country more more product across developers that be that is ready, fleets, the they all sustainable execute of market have to are and our ready. would So We tend that have in. owner the to relationships. now with thousands resident spaces want are a in to people looking that are the is to large buys repeat the These tens leading ability

some so money importantly, moment, obviously energy, at differentiate save it they but helps their them Yes, it this helps in property.

well is being as long reasons, those View the as credit. is positioned with the built, tax for So project

Pavel Molchanov

Actually, in more. you squeeze Okay. when one

the financed. recent which airport definition several market, by publicly announcements is about had You

sector in sensitive do projects, as airports role publicly private envision financed are mix this construction. What not years? revenue we nearly playing you your compared previous economically So including as year to

Dr. Rao Mulpuri

Great Yeah. question.

be projects, for number that talked airports, have projects well. tend sector are mean example, resilient airports healthcare, a public funding. So I in to very These we works about, we FAA in as of there’s as downturns.

you in airport, construction as both see the renovation out will being sure are is broadly existing terminals spent. came of I major that of There’s stimulus and expansion. still that infrastructure funding am you traveling, in U.S. Every the

also the a they and that passenger looks things telling by to instructed a in expanding that for experience not are which experience are better air the the better it’s two on-the-ground are is the only them And great director we things two they airlines airport provide, passenger leads experience every a airline. for

sustainable. looking better are but be So facilities, they for build airports to looking they are to also

them we legislation, may those, private not back because in of the from IRS since as to Remember, were in paying tax sector a rebate entities where new allows both some the the now the tax check and credit credit with these not the So well the we can the in sell to burden, only serve applies non-tax past. winning get credit. a have tax you they premium

for So cycle public it that private already credit point, in as very to were included in but only sector, the well because this tax sector, positioned are airports. products as applies is your not sustainable strong, a that’s why investment to View all we and well

So quite we expect that to do sector. in well

Pavel Molchanov

will right. you, Thank All guys. it I there. leave

Dr. Rao Mulpuri

Okay.

Operator

I call of And question-and-answer we now remarks. turn end the back have Rao over Mulpuri reached session. the closing for our to will

Dr. Rao Mulpuri

speaking XXXX the again call. topline. have operational accomplished QX today. look proud exciting for year efficiency year the earnings was the View I you forward of our as record XXXX a extremely joining company and continue on XXXX Thank what team for and with you. for so and all call the to on Thank to we grow our focus you be an I all View will am far. we

Operator

at Thank your conference participation. your you today’s time. may you this lines for and concludes this And disconnect

Amy Reeves

Good bye.

View Inc. - Ordinary Shares (VIEW) 29 Mar 232022 Q4 Earnings call transcript