Earnings call transcript Q1 2023

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Operator

Good day, and thank you for standing by. Welcome to the Views First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to Samuel Meehan, Head of Investor Relations. Have a great day.

Samuel Meehan

welcome First and Call. XXXX everyone, afternoon, to Quarter Views' Earnings Good Samuel Relations Investor Head View. I'm of at Mean, I'm here with Dr. Rao Reeves, Mulpuri, our Amy CFO. our CEO; and

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

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

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

description a annual Views XX-Q. subsequent results refer quarterly Form differ, I'd please actual non-GAAP more the factors including reports that call, remind certain filings, For like to most during cause filings measures SEC, detailed will that performance. XX-K we you could on and to on the Form discuss our our related of to including certain to with report recent

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

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

Rao Mulpuri

go-to-market opportunities. this I'll of macro relate remarks, our you I'll and including environment the the they to environment, challenges reach go-forward Samuel, and go last cover thank dynamics how and the and performance on for business. our the estate will all developments address and industry important navigating enhanced I'll financial joining to structure view afternoon. since cost prepared real details in our you, into profitability, approach. Thank Amy strategy this specifically we're call, terms us Then In cover our as of our

our in market; and the availability industry with is and main is secular customers interest at sector is stress and the real through very continue more that Views higher issues: the a drive of two plenty low changes two, less going the office moment, the adoption windows. challenges, on gain One, the view, through But about every underlying significant macro. expect journey about estate and of The cycle. trend, a of credit. to macro, Despite in market leading under the View given are the lack First, rates there's at share we contending been and market the opportunity but of smart share market for these we're to dynamics has

Now turning segment. to the office

pressure ViewSmart and to a for attractive overall to moving it best better provide and While to work. are worst. Class is and their perfect the provides doing be make offices office occupant are [ph] building experience. top the Class since regulations demanding under for are change owners a back climate of planet. in the that office the B office are Building do amenitized come order are bad, and superior This comply better a view windows quality A suffering to leases to drives the of renewing occupants into the that adoption better they tenants also combination offices flight highly with around building C the spaces new is demand and employees and for for their

verticals. other regarding real Now estate

we the in U.S., a of prior and housing that As calls, have a across we pipeline well-known continues the sector noted of projects fact now. significant the a be to in have there multifamily shortage it's

both repeat in and as existing continue as of and number grow to new know, we in airports. business well airports additional you notable expansions As a renovations airports with are terminal in U.S.

America. North installations significant have resilient real across institutional segments of in Both the office and buildings commercial compared much also estate. cycle We to these in are more hospitals medical

to describe strategy path and go-forward let our Now me profitability.

become last our took the $XX details actions XXXX first and structure in into of of like we are cost XXXX realized that fixed these realigned on financial we XXXX. the savings in to results. We the announced in It's provide quarter effective the completed improvements and million. above we to go-forward structural QX first business earnings by be actions reduce more call, I'd As note costs that our approximately our to beyond and year-over-year our expect strategy. to annual quarter start will important these

First, cost. regarding factory our fixed

and our costs. supply we performance of iterative the moving building. to strides process create our components. to integrated smart being capacity of fixed more than very high and overhead us to our investments That dedication capacity QX, in costs factory work our in the vendor ordinary product customers. to in a had an from with a high-tech substantial chain connected transitioning delivery the to of us just manufacturing rationalize required which resulting optimize is smart when performance, the first now adjusted we've know, team, higher chain, from you with hard the overall XXXX, Also platform, in for vertically for for made supply improvement. Smartclass to quarter has rather unique process allows system our and As skin well building make Through significant efficiency quality on-time lower our years and matured operational process our reflect the and them and improved In we performing

more our factory scale company This and project. in of infrastructure delivery it delivery believe change all already together, that cost per also will to while the built current have for to manufacturing removes we our inefficiencies reducing is Putting the and profitability. and we chains it significant customers supply deliver us allow across allows efficiently to

on to R&D. Second,

color, our neutral aesthetics on on been calls, quality. last prior and transition met product. feedback mentioned visual from and generation have year are we completed in we That terrific was As now fourth customers has with

cost secure, to install. and of easier lower circuit is an reductions of of This semiconductors We and continued completed our area advantage also network Law in in is Moore's effectively R&D tracks recently the cost that next-generation that more design. benefits taking

these completion both mainstream we of The and expenses initiatives to Gen substantially. our to R&D this X intend allowed product. product, us profitability of reduce is get to now of

marketing. talk let sales about me Now and

regarding marketing. First,

Our efficient has customers last spend allows of be the This best in are promoters markets, going our the of major up With each forward. our of U.S. product. product key significantly to marketing year. the us more with in our installations awareness gone

the Next, on to sales effort.

customers portfolios in standard are of the what These markets. our treating as on separate and constantly now the ability to renovating. we're across buildings have few down spent years invest building reference view Instead key last we we who building installations large markets, each and and decision, building platform focused accounts. also awareness more their a are are portfolios. customers and While to getting of as market-leading These upmarkets sustainability focused importantly, be a in increasingly design tend choosing and have customers equally call

these also selling a This costs. repeat reducing penetrate makes lot acquisition business. we we more significant effort the enjoy Once accounts, effectively our efficient, customer

effort and of is for So a achieve go-forward very mainstream putting a the structure. place about we ready that's cost profitable us the customers our the sales have efficient thoughtful been on focused developed product also fully believe a ramp-up, manufacturing in the with combined the platform all and We've more scale. it to that and infrastructure processes of together, today, business. structure gives we And maturation

we plan holding we Specifically, until costs fixed this at on our level achieve profitability.

both points and total, for the up to these reductions represent business fixed significantly set lower lower In and positive a gross breakeven EBITDA positive. cost structure margin

achieved did we customers the to which being investment revenue, revenue Last tax was was company. Historically, million to pointing a Turning side that the the credit year, out enacted. significant for $XXX It's this milestone windows. business. for a significant smart of worth premium our paid the prior in

window credit window. a Going making that forward, tax smart the the cost about premium, as removes traditional same the

forward. result, this now interest, a window be uptick customer going growth our seeing the a As of our spectrum anticipate effectively significant a incorporated we in across and demand cost smart drive portfolios. will We're momentum bigger customers' can

call, have $XXX $XXX to our a at XX% the revenue the or of mentioned a of backlog XXXX midpoint our that are to in we last XXXX the million already of XXXX range. on As guiding committed growth exceeds be we revenues. we million Today, range for outlook

was to some time, margins on project. Now on January able window and credit. Windows able for And cost ITC is higher Vu value enacted about the X. per to today, profit same details customers are Smart around same for window. to as the vastly At investment tax superior better a traditional capture the a get

the enable and View program putting established quarter, ITC made key of the see in to benefiting projects. progress educating This building substantial the ITC. smart our with place operational guarantee investment we tax on from the for industry customers insurance a an window will customers. our credit, of these and believe support qualifying building for credit tax customers blocks blocks rapid the in for we We acceleration place

Finally, today, financing. we we're that $XXX announced million pursuing

million strategic announced As noteholders estate was led and year RXR regarding existing last financing. shareholders closed $XXX and real with in the currently financing that we you today's We're know, other by investors. discussions our

the over in to this we give Given lower lowering over company that, our financials. is to it with profitability. to fixed strategy the breakeven this hand costs With point, progress quarter you. our we made the Amy, structural Amy financing, and that cover I'll to

Amy Reeves

I everyone. afternoon, be the first for quarter will financial good the and covering Raul, you, of Thank results XXXX.

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

we from primarily growth of we quarter, of continue building as represents year-over-year this XXXX, products due an the X% platform For our shift smart our to increase line business. million, momentum in to $XX reported revenue strategically which to QX

continue high-quality and of shift to development we the approach to relationships supporting projects. this their XXXX to expect differentiated with focus We our throughout as on see customers

benefit non-GAAP smart of of lower offset impairment, platform with our product XXXX cost place than of decreased revenues in the and initiatives cost XXXX during associated of reflecting X% which factory in savings put QX building cost increased of higher more the levels our inventory the revenues. Our year-over-year, delivery

Cost continue and of favorable as revenues mix percentage to the smart revenue, products. manufacturing building company's costs to growing the fixed benefit improve a the revenues over of reflecting our platform shift of

grow additional and Ron gross our see that our to our operational costs discussed through improve the leverage in we as efficiencies expect realize earlier. We revenues, fixed lower margin structural impact our measures of continued the

sequentially percentage we improve quarter As that a and as revenues a gross to continue expect both XXXX as will this each result, XXXX, margin to compared of year. during

cost of XXXX, primarily was projects driven Turning decrease initiatives incurred in by we in We place to well late and QX completion as the non-GAAP as a XX%. realization certain in expense year-over-year operating XXXX. development This the of savings R&D million $XX research expenses. of that in put decrease

incurred following lower non-GAAP and following that We marketing well put million in on in decreased in expenses as the XX% sales legal our lower $X we -- late well cost as expenses lower in completion XXXX. the half SG&A place accounting XXXX fees second of XXXX, restatement savings year-over-year, reflecting as and our of spend as which initiatives in QX

to in lower We earlier. quarter cost March, and that as put second the in see realize quarterly discussed savings the further Ray even of place in we expect we R&D SG&A XXXX beginning which expense

of $XX reflecting the loss million lower our quarter QX impact an of of compared adjusted XXXX, the to XXXX, in expenses. first EBITDA we For $XX reported million

adjusted our We to of expect improvement EBITDA year. loss continued this see

leverage in used to Cash were from cash. first to XXXX burn the with million, place. the improve in million $XX continue the structure quarter anticipate our our was improvement that driven to our compared cost cost higher will following by quarter million turning $XX for last course initiatives of We that over recent lower cash in revenues year. savings $XX fixed of put operations an XXXX, first Now of

progress cash this we cash that mentioned, as our result cash, of Due We quarter. burn -- in beginning sequential cash these $XXX balance the million strengthen expect as operator, our sheet but on the for and our the as quarter, $XXX hand and improvement XXXX. annualized on million. each we XX, With the our pursuing million to and actions approximately Ron in million we and that, the in the should of of our to we'll We third call, We as second operating investments In impact December are to support compared of previously the to to mentioned us into questions. need, earlier open of third year. As we to of we XXXX. quarter and of quarter sufficient fund with burn anticipate short-term savings anticipated restructuring requirements actively fully a light investments be realize profitability. will believe path currently the equivalents the on $XX cash short-term through of $XXX cash impact this capital financing to will not cash ended end quarter our

Operator

first comes [Operator question the of from Instructions] Our you. Thank . line

Pavel Molchanov

Thanks.

the precise and Viu's with you start insured the what insurance and have that more created. me tax Let providing you is the Can little what service? be role a being protocol in is credit

Rao Mulpuri

Yes.

So you for Pavel, thank that.

projects So know, is as a because credit. for -- we XX% well. as the of XX% tax credit credit qualify we you XX% our to a domestic And are most manufacturer

that The the covers estimate you community are that still percent domestic you still manufacturing. a There's The the can kicker XX% credit, regulations our is properties, the the out. then So based on interpretation for is XX or of is from XX there's tax up -- brownfield to regs for out project and credit XX%. -- broadly way And energy for of a how estimate tax the get coming written. IRS. the coming Section certain law entire in

As and around clarifications you so know, on. saw some EVs you

to of firms, industry versed aspects clarity. to that not they're as those the is further for making firms we and know, meantime, And decisions firms, tax the this of well come credits new. different this there's insurance codes, subject tax you But investment given an around of itself are looking the legal energy customers So subject in our are out year. getting they're and in later expect accounting

we backs what we place that guarantee and have can so a that we our in And credit our for third-party is program customers, the insurance guarantee. have

a at and tax where credit project million million investment future, but they're the $XX project get windows the is the credit service, a the that may expect be $XX to be and imagine will smart making is investment program. So in time that our of making they customer a which a put credit, availability today being in by guaranteed in the sometime decision

Pavel Molchanov

taking balance XXXX Have Right. dollars, on on your guiding for the And that example, you could kind you're estimated the essentially potential be on you're of to? sheet? given company that hook sales liability this for based

Rao Mulpuri

Yes.

we're actually sheet. not balance it So our taking on

a That's situations. We common small have insurance paid an for And types that. policy in fee guarantee. that these the there's of pretty covers

and it, a third-party still would we by and the it's of So get backed the revenue insurer. benefit full

Pavel Molchanov

Okay.

me for guidance. indicated revenue Let terms positive to the before in of you X? turning above gross see can of turn ago, the X to for remember gross margin margin guidance, kind XXXX Good that initial the think latest months you reinstating you get guidance XXXX. the year. end when What's you some gave of I expectation when

Rao Mulpuri

Yes.

more we're value way more allows on amount very the value on fixed system margins, infrastructure focused margins profitability. That better of building higher a getting and has growth Pavel, business talked to benefit about, is the So all volume into running is profitability. focused have us that we more the taking us as deliver meant one to traditionally, accretive And and as the you high The putting the of we're that the strategy higher-quality where things expanding gives of smart new to true vertical path that have a we tax by our know, antidote fully any to of operation, business And for mean would credit platform which of an burn. with efficiently. faster lot be volumes capture and we cost.

for better square that shipped, foot of means able we're per example. capture margin All to

our than lower side, breakeven points. and the that our positive know, EBITDA will and which sales at get delivery you G&A, supply in gross levels and manufacturing, in lower is reduced revenue we're of our to and also our R&D, not support margin able chain only in volume levels having planned cost, the in commitments the to field you and our past. see also On had positive we fulfilling to customers, as cost but marketing

projects kind on a customers ago. delivering we could right So strategy in way this than thought and year of the a more a we efficient focused realigned that's is while

will The this net end by not the if close, margin of very, get impact right of positive that around is very we gross year.

created we're line the keeping we're strategy capture getting we've where to there. get time So to there, a -- we're but able value in better

of But we a Now as time in about whether the ago. we given slightly same projects slightly around positive, we'll get thought on the to margin mix quarter. did we profitability achieve depends write our line X have negative months gross remains

Pavel Molchanov

the maybe proposed today. then million ask offering, you Okay. that finally, about announced convertible And I'll $XXX

Your thus for or of strategic was with Or say, should arrangement your far, investors I similar the this are for too aiming traditional a kind RXR. of partner, to Do you or convert -- only say? envision last first convert convert? and more you financial early course,

Rao Mulpuri

I largest a changes. long as think go we'll bit world, me going But in to companies asset our the let you us product, specific. successful is real the to it's being through that industry company class changes, and And to the know, medium term. in benefactor you, estate tell be continue early and massive will industry of the like our be through

pockets the of of are not them. that of one is industry, RXR real estate, entities companies. manage only And available and growth there emerging capital invest in within but Now portfolios to have technologies

in the the thoughts had looking to terms them As in similar many help fund and in of they're announced we financing, that like and for had develop others change for and the ours. have ability change the we've very last companies industry

a they're in investor in support And And round diligence insights beneficial us class in has user the last invest, worked evolve to different product, by of were than not, how having investors enhancement. how that get industry they with is base of what their down had is the dynamics, that sizes. group we it projects bring X a the as evolve successful impacting to collective are and the rates get and to sizes as our to on, they The be that to subsegment to and our ability beauty being learning of our the in prior able product closely working view of into we more operators, them. that user compared get collaboration the interest investor for and we're been we to hugely should able of We iterative due example, designs. it one product XX

benefits our manufacturing and in That delivery running our has enormous chain on-time well in operation. supply in as as costs.

the I next we that So they to help be financing and this the to heavily it diligence question, medium to have view to should class story think answer involved long succeed and same ability of in in group investors and confident your expect term. be us frankly, about because

Pavel Molchanov

Let out gave more March headwinds me broadly. actually guess, we zoom it was estate about months talked, versus commercial guidance, If one in in ago, squeeze original I again, X the more real in. you XXXX when you

had or little this in compared do how more airport of mix high-rise? versus 'XX now to you real to that a to or 'XX commercial in time terms customer So mix you've macro different much observe sales -- kind the landscape versus estate, multifamily be expect of the year

Rao Mulpuri

how estate. real macro that. of I'll Number two and a on one, question. it from points have Great impacts view Yes.

Our planning this around soon. that not is anytime turn will

in an all planning sectors challenged real estate which for environment couple of fully So next for the will years. we be of are

industry and a very assumption tech but believe serving us that Now not if grows true, better upside. does as that's because we a low from as be share, that the market a it here safe for may at company

and you segments, projects. know, In science we've traditionally, and in office strong been terms very as of office-oriented life

largest We've our made to -- year. pivot that make that last pipeline projects in pivot of started is And today, multifamily.

sliding major And in today, we our all X, of the product, a to that's with the product really, our the more with there's the ready have way the et multifamily impactable to you app with so buildings windows, X years and shift weren't ready with control that is consumer, to our then are where also the multifamily the I tend using ago, a we is interact cetera. swinging office doors, in now would being component environment. BXC operable, someone say And fully timing panels apartment from

be completed for ready that we've multifamily. So all of work to

other We also and major number and those had same repeat coming great to buying installations us with a portfolios multifamily back. feedback from portfolios. data And are have of now now expanding

Some ability have actually heavily developer to to U.S. in multifamily geographies heavily themselves customers the office in pivot multiple from of our the

also views and the they're where moving multifamily. to to that's So symmetry more able creating of deliver kind more multifamily

tell sector flight transition. of science So office said that's time, you, been that, let the Having as of still growing airports. this know, doing in that a in me we're number to as as office Throughout discussed. life because to well quality we you and multifamily offices renovations the we've

We're or hospitals new we're ones. hospitals in fourth well well. many I we've airports, airports better in single of buildings. build we're and a where airports or in number office And these they to also and been well large then U.S. of a in on as of dozen this well or and in as mean, projects. multiple some some are project speaking, third these so number of is positioned a of with our a investing year as now Canada renovate them medical U.S. there care as relatively and Airports in cycle, as segment health every

our transitioned customers first question, anyway. The a where have but money macro we it we're order macro significantly is factoring verticals your than build-out. our going is think in So worse to to and worse how is forward be, to about pipeline there the there used we yes, and to

Pavel Molchanov

good. Very

Rao Mulpuri

Thank you.

Operator

concludes this it I'll the you. Q&A hand of call. to back the section And Rob, Great.

Rao Mulpuri

point made our We lot the for Vu today. a actions start the profitability. of you to Thank year. reduce to all progress call for has our structure lowered breakeven took cost joining and

$XXX With focused strategy grow financing, and on to again company to our this sales get expect is of look XXXX raise We that to revenue call. profitability. to all intend million our the approach. that, earnings Thank We to you. with we QX using speaking forward I with financing, you our continue our

Operator

Thank your in does the program. today's conference. for you conclude participation This

You may now disconnect.

View Inc. - Ordinary Shares (VIEW) 9 May 232023 Q1 Earnings call transcript