Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to View Inc.s Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. The question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

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

Samuel Meehan

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

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

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

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

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

during I'd performance. measures related will the like to you to discuss remind that View's we call, certain non-GAAP

non-GAAP the to find can refer Unless release. press otherwise in of nearest the the stated, measures call You reconciliation comments GAAP of the these operations. to comparable our during measures results

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

Rao Mulpuri

the today. us recap you and afternoon. Samuel, joining key A we of thank you, announcements Thank make this for quick all

the profitability. execution we an and results our demonstrate focused second towards First, had excellent quarter

at our XX% year-over-year reaffirmed the guidance of we full revenue Second, midpoint. year growth

critical first in the a to forecasting margin margin, gross point the achieves XXXX. of we're for Third, This which business. company a will represents be inflection gross our the third positive time positive quarter reach

$XXX the lead cash with capital expected million flow for to million to financing our is with company executed enable positive investor, we $XXX strategy. a term three sheet the of current Finally, a additional to get

talk spend Let's a mission. our about minute and

For view to products a infrastructure the work societal for that last hard at full-stack better. the years, been XX at we've build transform

impacts is up of harsh short society us term long-term now of the that everyone change, waking the many realities to right recognize of climate effects the are impacting now. While acute

witnessed this in reality. we for wildfires, and these address communities life while The to also warming large better impacted solutions generations. providing issues floods unprepared heat populations. Just events extreme last few future Many new of world urgent the oceans, quality large that of these months, are needs for

fight me day It our technology is place. at fight the fired in this world to mission make single a that up View better order to to the everyone and gets bring and scale every

growth in quarter XX% second the year-over-year. We recorded discuss let's revenue Now of detail. more

As I been commercial residential cycle business the our call, in completed has office resilient current in that multifamily from real we of majority compared a mentioned sector last majority the sector, estate. to our to in more pivot

vertical. this tax credit tailwinds provided In for in expansion addition, the has our

And We growth top-line early drive us the the platform are key with line of throughout the executing projects of remainder sight help our projects accounts. that in the stages will these multifamily year. several of gives

and QX into visibility that With QX.

We for have reaffirm the confidence revenue guidance year. full to the our

cost fixed actions detailed the call, earnings we to structure. we took On reduce our

these off. proof are efforts The is paying an point second that quarter important

release a and year-over-year X of Gen from and improved expenses QX reflects improved mainstream minus minus following significantly more Total XX% gross strategy, our multifamily XXXX in Our R&D margin lower G&A to Spend offering. go-to-market and product efficient XXXX. QX spend, our in XX% lower operating XXX% the

start to We country. across and I've our customer about business required leverage scale. from to has operations and footprint model ready with built how been calls the be significant the earnings support scale manufacturing past quite vocal a our on that our sizable company

there's an those recognizes leverage. to create View efficiently. this business when vertically now This point. benefits dynamic the integrated that of the As technology scale is inflection the upfront it point scales companies. And investments business inflection easier tailwinds to common hitting make hardware is

In grew the million. second revenues our gross and $XX quarter, by our million improved by $X year-over-year, loss

benefit expect Going forward, as we revenues. to grow we leverage to continue from this our

View positive. Now This to for company testament to the announce been elements to value. significant expect targeting products most milestone are: margin be path gross looking go-to-market excited the third quality high our for quarter, achieving to that I'm The on the positive and is revenue enhanced profitability. the focus the add ahead the a we first, to gross View team opportunities a our achieving We've relentless key by strategy. where margin

be on enabled. more tech more These are We're that sustainable, and transformation industry leaders and healthier also growing focused serving should driving buildings strategic experiential, platform modern real our the accounts. in estate, and that are believe in

an recently the We're interest margin. from parity enacted as both us margins. conventional windows a to ITC Windows affordability well Credit, Today, still benefits enabling is deliver Tax cost at also capture to which and seeing Investment Smart our the healthy uplift as in customers' View

a costs, which The includes in And today. we XX important projects The factory, well the point. country. lower profitability large process manufacturing is a efficient in breakeven comes worked with critical of the perfect years. the overhead. tirelessly over It delivering at to get that we lower and driver today has note across gross the factory to enable footprint second to expect from team our place margin is more past operation have to reductions our revenue factory and This fixed

seeing View we're the due controls costs completed costs last an This of improvements the significantly We reduced products, network upgrade and unit product the to industrialization. lower while improved we and over completed on Net, benefit generation execution next Finally, recently our year. work improving infrastructure. of

on improved to new see projects. the impact starting financial as architecture out We're we the initial roll

we're customers room to there believe production Platform. This buildings. our learning continuous with capture. their cost, working additional design, delivery recognize value vertically in for of optimize also continue is benefits our We to and still cycle, Smart we a closely and cost integrated is Building And

close my we've the remarks, progress towards scaling To significant out made profitability. prepared business

results The second of the in gross margin is until third we We've business working. and we achieve proof on the structural profitability. points our to positive current are significantly And the that achieve costs these quarter. plan expect holding at quarter the fixed levels plan fixed costs reduced

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

Amy Reeves

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

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

million, we a momentum to For strategically primarily XX% which the year-over-year continue product of due QX the to in growth Platform XXXX, revenue we from ship $XX this increase our quarter Building reported as our to business. represents of line Smart

We offering. over driven also year business within by smart mix saw nice a year that our product growth in glass

is our a product Building given customer And inherent platform our be offering, advantages offering go to Platform. product this Smart fully Window to on forward this expect integrated primary basis. Smart the we and reception

XX% QX cost of revenues over period. XXXX, non-GAAP for of increased XXXX the revenue from growth QX significantly year same year less than Our X%

and reflects product our of our product mix over offering. with cost Smart the our our in driven the the cost associated and during put the by shift favorable year Smart delivery benefit revenues fixed Glass of leverage lower costs in We increased by reduced fixed the Platform These savings This XXXX. our of higher initiatives offset in Building field year first place factory of and the XXXX were of half revenues. cost

margin manufacturing Smart mix are forecasting of the smart in We product and costs. benefit A improved favorable over delivery third Platform Building in efficiencies shift a to now XXXX, remaining fixed positive the quarter product. business, reach in reflecting the revenues our growing glass of our lower gross costs of

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

compared XXXX, lower fees sales XX%, the reflecting restatement our expenses accounting legal following in We well QX expenses on non-GAAP XXXX, and incurred lower the as decreased and in our spend of SG&A $XX following as million completion in QX to XXXX, initiatives. first which marketing saving of half cost

reflecting XXXX, impact the quarter of For to XXXX, higher the of million operating and loss gross revenues, compared EBITDA lower million, $XX we margins reported improving QX in second expenses. of an adjusted $XX

to quarter. to adjusted continue improvement forecast margin positive see the achievement gross We by at EBITDA led in in the third of expect

company, levels adjusted our continue this gross operating cost improvement expect we margin achieve our As drive fixed profitability and a structure until EBITDA current we to as to in at revenues as growth. hold will

XXXX quarter a used first improvement to cash. and turning Now of quarter of sequential compared of improvement was second in $XX XXXX. for Cash quarter from million, XXXX $XX $XX the the operations of second to a million million the

half leverage used cash fixed relating anticipate of to by a our included initiatives. second cost driven that from costs. of and cash improve XXXX to lower QX, cost following recent XXXX, the restructuring operations use Our saving the revenues million cash with in higher $X burn We continue structure will

on $XXX of need, through not term to investments we quarter XXXX. a March our the cash of progress capital call, mentioned In earlier and as and million actively believe us $XX financing September we cash short but sufficient operating support cash and We XX, as light are ended our to fund XXXX. should hand this pursuing to currently in Rao profitability. be $XXX million of the We into requirements as on path with equivalents to cash compared million anticipated

over it With that for will we operator, questions. turn

Operator

Thank you.

now you. conducting will Instructions] [Operator be We question-and-answer Thank session. a

question first James. is Pavel Please from Raymond proceed. with Molchanov Our

Pavel Molchanov

taking question. for Thanks Nice. the

sheet. Let with non-binding me the start term million off $XXX

clarify, convertible straight first of debt? is you all, can or it is So this

Rao Mulpuri

to on today, Pavel, facility. senior And, debt a weeks. we're this debt sources to all secured we focused of it's open financing, So but closing continue But announced as facility in that we the coming facility. a be is obviously

Pavel Molchanov

okay. Understood,

revenue to good a And margin gross about positive, basis? positive that margin cash So depreciation, to solely on or getting was gross maintained. guidance as talked inclusive in you Is that QX. see of

Rao Mulpuri

includes depreciation. Yeah,

Pavel Molchanov

but positive scale there cost shift of other What so In manufacturing, the are drivers Can you ramping, economies kind gross be input some about presumably to pricing? of that? talk et and is margin? Okay. going drives words, towards cetera revenue

Rao Mulpuri

our drive can a progression us. margin. from a And margin. is Yeah, that business, there Pavel, were many in went we quarter. as for when that's on we gross our this over point in website, little this we to negative XXX% a major to zero inflection coming have see the presentation, And public, posted components you imagine, in you'll Because up

The components are many.

important is not the only revenue. capture top-line, also of most Clearly, the customers, point right that focus helping at of you the which it's for hitting to value. points As the the quality is scale, out, the one we're on volume, allows us but projects, where right but price is credit tax our right affordable the

in is inefficiencies our Platform eliminate us allowing the reduce Building delivery Smart of The to product.

make are not only clearly, how mistakes So together come and sites. they without we the installed they components, on how job but how

cost. So that helps us capture value, reduced

components firing and making obviously, like improvements. on all key continuous manufacturing, In cylinders were throughput yield

As we've years. this XX doing coming now you for up know, been

that metrics of operation. all work key manufacturing at has So processing team hard the been improving a

significant. is Overhead

but you out, managing absorbed, significant we've fixed But at very significant even As a that costs. are still is we beyond have those you better gotten point costs depreciation, under number. know, depreciation

able we've on the Moore's cabling, from industry in sensors. capability to periods these the especially I window then time the for chips came all short so connectors, side, of of the improvements, It's Many the to controllers, product the follow electronics, same law. the cost. you're the them And of double clearly, the made

they're to able sites. and pass job how through. we're them those But source So efficiently on also more installed

And of point us together those to are achieve so positive. for of coming gross margin this all

But one happen it in didn't day.

of to tell this our means see own we in which look pay this we've provides path the to bills, profitability. go this beauty rest the margins enable to XX will is point. at have over that progression of marching growth been now you'll quarters, our team, chopping way XX the top-line at its And us us away the towards the point, generate. If that paying by factory of bills, you continued OpEx is The or at I the last

Pavel Molchanov

me let that way. And turning given so now ask guess margin for guidance gross you've I this it positive.

EBITDA If ready you're that can becoming not about that positive, to needs what to before give outlook? happen talk you

Rao Mulpuri

years. we hitting Yeah, the do within next anticipate that two

of ahead And being growth. past. we're I the in cash gross executing think we've margin and about positive, We're also expected burn plan. set managing our that thoughtful our equally

half. around our burn, we're is as But being revenues. down of making game we has as that's that, in you our been thinking going that sure with growth. know appropriate go in to continue ramp cut And this a So cash roughly to

To most important right burn answer for your question growth. that is antidote for the now us

the quite operations doing continues were that right post-pandemic, through moved right of saw to short there's we supply. the the office product have significant going housing in in we from We well we place. but majority And but the right customer into today. in multifamily sector be is development you sector, narrative effects, And that today, in where happening shortage because building segments. of our right the We're place, have base in

institutional hospitals. business So it's very resilient addition a other in airports, and like sector to

our of multifamily now If our pipeline, is our area biggest is outlook pipeline. in

to So is help continued going majority profitability we office multifamily the to that traction tax from us credit to and in and with majority moved beyond. get sector

Pavel Molchanov

last maybe stable reductions? to had achieve that with and And forward? in further anticipate that Or cost you you going question. assume corporate do just R&D structure June stays we The Should room SG&A quarter. the

Rao Mulpuri

of Yeah, that key And profitability. maintaining kind On be achieve you level we break and should the that sales is reason the until expect marketing. into we'd for components. it at down that let's

to the infrastructure to the in serve place platform grow those with. have accounts. And accounts We going we're our are

And to more so invest in we marketing. sales don't and need

are our anything, existing is buildings tools. if marketing becoming our best And easier, marketing because completed our

have we a experiential is nearby. a need the product, of now buildings a building View XX we do America. to bring in play is all highly we to know, in customer markets practically you key all And As North

have significant our the business customers, side, On they're promote promoting helping product customers our and are delighted but repeat also existing the we enthusiastic from product. sales or and existing

of the So quite affordability by simple, has sales tax become the marketing and especially credit. aided

of the been field, we've R&D, product the has from years we've that of iterative the taking product generations been In four through over A in XX-plus learning development. issues customers, in lot improvements. the last had

well. Gen X we install colors, the our Our right right them at product to electronics the as the easier made cost, right performance, are the has right and quality,

our Our apps continues AI, relatively software improve. We're to is the software, our building small. and that of our cost but

is R&D factory at our continuing our And aimed to run better.

with improvement yield on improvement, equipment our the electronics. focus to continue managing suppliers we So

profitability, development. focused on So it's opposed industrialization as feature very on to getting to more

And then the know, of as all public biggest as With significantly to you with ago, compared G&A drop through well. our a on a went us, related see year is that company you G&A, we the to restatement have that behind financials. lower we

you to cost a components, those maintain ago. of from going XX% all of profitability. through that the we've expect add year taken OpEx when So forward out And we nearly

Pavel Molchanov

the fit update. Great we

Operator

Thank you.

at proceed Dr. this As turning further Please questions there back are time, to comments. no call closing am Mulpuri sir. I the for Rao

Rao Mulpuri

of point. and and perseverance to the moment Thank us proud I'm this the you is team's View an View's through today. all get important for This joining call for dedication

we've past loved developed is customers. XX a mainstream product years Over by that the our

manufacturing have and ready process scale. to a is that We footprint

is sales a accounts structure leading We taken a the we industry right And more to verticals a partnered profitable the on that have strategic focused effort actions which business. for cost build is efficient as with achieve growth. company can a at right we've and

well outlook Thank quarter that, speaking third results earnings the to second XXXX profitability. you demonstrate are to plan working Our and I is QX on all quarter that you. we in look and With again executing call. with forward the path

Operator

today's Thank for Thank teleconference. concludes you participation. you. This your

lines. your disconnect now may You

View Inc. - Ordinary Shares (VIEW) 10 Aug 232023 Q2 Earnings call transcript