IPW - Earnings call 1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss iPower's financial results for its fiscal year first quarter 2024 ending September 30, 2023.

Joining us today are iPower's Chairman and CEO, Mr. Lawrence Tan; and the company's CFO, Mr. Kevin Vassily. Mr. ahead. go please Vassily,

Kevin Dean Vassily

p.m. Good website our By on earnings fiscal issued also Relations for approximately which operator. available available release have the be meetipower.com. in press everyone website. This access our was Investor X.XX at today to first of earlier replay time. afternoon, you, The now, is our everyone. section should release, Eastern at Thank webcast quarter will XXXX call

questions. we'll Following the open our your for remarks, prepared call

I like conference certain and statements Before I'd comments made Litigation webcast forward-looking that Lawrence, remind listeners XXXX. Securities introduce to considered Act Private on call under of Reform this the are

and are future they regarding projections, are economy and future, risks statements conditions. Because future the that assumptions and circumstances they of historical to only control. plans of of subject our statements anticipated the and future to are state events beliefs, assurances performance. other are our of inherent and uncertainties, expectations Forward-looking predict, maybe the Instead, often strategies, relate business, and facts to on neither outside nor based future trends, our difficult changes current forward-looking

was including are the risks no to annual these from and release of Our financial forward-looking those CEO, undue Chairman made I'd XXXX. Do subject Lawrence? to by are any in date. differ with forward-looking statements. With our publicly as Form over time condition in SEC forward-looking filed iPower's being only to undertakes the to which reliance time as the and statements, the obligation with law, other this place revision to also statements on turn Except call Tan. which SEC, or statements. like Lawrence report filings materially results any not now of actual indicated required that, revise forward-looking any company to the uncertainties that These described on from September may and results are XX-K, company's XX, the on

Chenlong Tan

And good Kevin. you, afternoon, Thank everyone.

in During product generate was quarter invest record demand. to the second total revenue continued that as products over products for said, the shelving rate to in our chain as On were delivered period. We have comp again, supply and high fans, of is overcoming stated That to in-house and $X across run resilient and high-quality growth by material This calls, of in we the part consumer the mix QX annualized and due suite deeper. the demand will in partnerships, XX% marked present now generating fiscal to to growth sales the revenue. Sales non-hydroponics ago our furniture. we our hydroponics, for strong well million remain previous as the and our categories quarter, strong accounted results pergola products our in space we providing the approximately XX% super of beyond a our diversify year to outdoor desire committed revenue. Diving over dictated once of quantity continued hydroponics revenue. continue consecutive which

content-driven channels ecosystem our commerce reputation, our to into virtuous fortify while began also We social fostering drive to a of tap brand product. to

trusted and products product The For short-form which only based program in build platform, to algorithm the featuring video present us drive a of will our leverage approved example, an influencers users but allow present also to of review their activity. TikTok's TikTok's we not by testimonials. on are repertoire will impressions seller our feed the high-quality short-form videos will to our right

monthly generating approximately $XXX,XXX are revenue. chain mentioned with is earlier, I As super we the ramp partnerships, which of supply pleased our suite in now

supply a benefit super and us working pipeline our chain, from partners fulfillment portfolio through add partnership with expertise merchandising. innovative is are to strategic value the goal supply could product super momentum in with solid suite offering reminder, business gaining growth chain is of and prospective a that of we As suite our The to rich partnerships.

as that insights of this are area from We are accelerating efforts we early with from pleased the our these business. gaining as invaluable results well

OpEx. Turning to

of We inventory make with to expenses. continue headway our warehousing reduction and

We key which are efforts levels, the to reduce of an also That benefit to on gross at sales demand cost of our to see now programs impact have beginning between the operating level is in margin. said, of realize having begun shift sales at higher expansion. platforms, through X a inventory our operating our margin we

moving to We are pull working through these several fees forward. to levers offset action various have items and

look resilient we portfolio of XXXX, is high-quality, to consumer demand product. our for As calendar affordable

right the and will to mix, Kevin to improvements our have which our made taking greater highlight are diversify efficiencies material sheet, balance shortly. achieve revenue We steps operational

We over results on in Kevin? call the detail. are continue prospective acquisition financial more as through we Kevin as growth our well opportunities to initiatives. I'll to well, capitalize profitable you our Vassily, and executing take our now turn positioned CFO,

Kevin Dean Vassily

$XX.X variance Lawrence driven growth from ago quarter to year our all-time strong mentioned an earlier, fiscal record the otherwise, company. part compared by super as the well in Unless in for increased when Thanks, year. million suite our all from in-house results. The sales quarter into offerings X% our as prior was is referenced, was the product $XX supply revenue dive Total to million commentary we increase to Lawrence. chain prior compared QX the sales portfolio. year

$XX.X basis. Gross in XXXX proud have first drive on of quarter fiscal year-over-year $XX profit same quarter continued to we're million the XX% fiscal in to the So compared to to increased a million growth XXXX. of

compared higher-priced primarily ago our basis operating to $X.X The is primarily year gross to XXXX. in fiscal product to margin first same inventory. Total increased margin the in Decrease fulfilling same points XX% the as increase loss loss gross period. was goodwill, the of loss period $X.XX fiscal quarter improvement impairment share favorable for decrease million much and a driven for driven per through worked fiscal period improved million loss $XX.X a having QX driven loss expenses. revenue, expenses by by offset the for attributable The compared million million of $X.X $X.X $XX more in mix by as lower to in well XXX of was $X.XX percentage per to XX.X% a improved As of profit XXXX. gross to of in XX.X% a partially a operating loss or by on expenses. Net higher or in net iPower compared net million aforementioned selling increased the share and in

$XXX,XXX net allowed compared to year. to of to reduction of than sheet. to million XX, chain Moving to $X compared million less improved XXXX. at us of by The $X balance June $X.X were million as of to flow and Increase the Total primarily from XXXX. debt equivalents supply inventory. QX compared prior on resulted XX, continued compared as XX, was business June XX, as fiscal cash stood by in decrease to the our down fiscal run million June XXXX, to as a $X.X the conditions million in September was to operations debt $X.X Cash driven that significantly million XX% have in pay XXXX. Cash levels $X.X for with efforts improving $XX.X million debt, driven lower

levels we state. a inventory our view are stable with in as earlier, mentioned Lawrence better As alignment what

prepared gross to XX, with a June of savings, XX, goods continue strong as portfolio think business, flow our for drive coupled well foundation improve lower demand successfully to to XXXX. Between brought and us strong to is and super remarks, we open September As cost of as XXXX questions. our compared down of we've got products now XX% to in the promising to to sold return it place concludes margins, a we'll approximately start our suite continued feel profitability. This for inventory like million up in in-house warehouse by our we we've $XX

Operator

coming [Operator Fortune be first of ROTH Instructions] from MKM. Our question will Scott

Unknown Analyst

is on a This good quarter. Congrats Scott. on Nick for

through TikTok, Can kind that selling on me, a And days? be just provide seeing in what And on you are would platform question hold products of a as color TikTok. the maybe on that if First could more seller on taking on early of that platform? economics you're just for the helpful. step little just what you

Chenlong Tan

ramping over pretty There many right the not and other kitchen the What kitchen while months TikTok. answers on TikTok will now. Okay. really the have are on growth X and is is mixed up think last I home, goods that Hopefully, and sell a your -- big the we home a sellers have But sales beauty, while that's platform TikTok, best categories. fashion quickly and from question. coming

Kevin Dean Vassily

margins least now, there right And the the normalized -- a kind to we products as economic platform. TikTok sold margin Yes. ramps of attractive that's be the more for are in side, going on at Nick,

initial their Amazon, merchant the we They're attractive. call this shipping some also the that which So they're equivalent also at like in of kind let's would is orders, them is subsidizing of on account point. pay fees lower equivalent

kind how So while kind place. they long of economic of in on model will haven't be that really given guidance attractive

I the intend believe make this a formidable that in think U.S. platform to we they

so drive economics going place can perspective attractive least future. on some our are continue extent to more the foreseeable merchant compelling, be fees traffic the for orders to the the from the these TikTok And for are that push we're because particularly, to subsidized and and to we -- to initial from shipping in going at to time, try

Chenlong Tan

soon. and -- think Amazon, it go for They They a any with will time don't will compete last Tmall away while to Facebook I alignment.

Unknown Analyst

sense. several highest No, And in that just side. appreciate the spread on the I that. me, quarters. makes margin for second then It's gross

us the understand Just help cadence there.

out mix You and business ramping. the services kind of called

should see into here margins forward of Just side the assuming accretion, moving sense ramps, that just the of your as you balance ongoing XXXX.

Kevin Dean Vassily

I'll one. Yes. take Lawrence, that

the of number So given multivariable just I quarter, equation. margin product is of size -- the which calculation catalog say every I'll our what and reiterate a SKUs, the the is gross

the inventory So we last that accumulating thing for that's and cost sure, happened through started us is benefiting of year. bit we've higher quite is one a worked that

lower costs products So they inventory than costs last costs, much when with we're those built or those we were are year. freight container burdening

skew is would on said above a the product that And average, given our of while So the mix down. quarter in demand. gross say quarter, or other function end the is of in can in environment, we've I sells margins are steady up certainly helping. But that's a customer that that any kind state is any What in given what thing past XX%. sales

a with at that SKUs fortunate sold we clip. our margins kind individual were of a gross XX% faster of lot higher quarter, than This

what see fluctuation quarters, over equal. I all steady-state continue But environment, that margins stay that is for sure. several a gross the that should think being still next So things some in you'll I think would say to above XX%, we

towards. continue margins that's market But selling what helpful. products quarter, given we any and are. the so in individual will And Hopefully, to that's dictate what gross are those work will what

Operator

Thierry from Water of coming be Wuilloud Our Tower will next question Research.

Thierry Wuilloud

the on quarter. the struck Congratulations Yes. margin. by gross I was

I the you explanation think appreciate I gave.

in activity. you the what super mentioned some businesses? You Is from you in release getting it give invaluable what you suite you in means? Can insight comment were and I'm getting curious comments data? that business additional you're mean. the getting Are us that your insights other some prepared

Chenlong Tan

Sure.

on through the supply data, We During the supply business of react working a market. organization, how functioning as launching successfully operates started the with couple partners how the with the -- side. partner super learn partners, we chain we within suite their they chain to

fields. collected the strengths so we with can help other environment more side the us success are we in them model more can the of where partnership our internal like how the it's facilitating chain So business they supply react this to with successfully. different in future formed expand that each the data to and utilize that and the Those better points we behavior work side, to external the on

Thierry Wuilloud

and to mentioned the identifying process does push TikTok. influencers -- if your you products influencers? is selecting that portfolio I'm it in or selling pull? you out on And products are it Or Great. well is work? who curious are Are are How that it's products? you reaching

Chenlong Tan

the we launched become successful we the can And on the products launched products very find Initially, a we we the limited top platform. on based become we look placed very the their the for based on some and performer. And -- product data and of while for initially, sets market then and out on influencers. understanding category after our

Now actively us. influenced we contacting have

very process So passed way we like like the I period. both feel cold-start that already become of instead now, initial has

Thierry Wuilloud

more partners is And million run are planning Or suite super annualized any can thoughts rate. then on mentioned you you a there? Okay. adding year? the us give But $X on finally, this you

Chenlong Tan

attract made Yes. of these success very And expand in services on. There to are with more we high-quality partners with. to to add we'll work pipelines And will plan partners It's business, that prospective partners continue to that if our us. naturally, category. partners be work to

Thierry Wuilloud

Okay.

So $X for that this end million we from up year than might higher business?

Chenlong Tan

I -- think -- will we'll won't go probably growth, down. I it go only

Operator

the the session. concludes over This for like I would you. Q&A call remarks. Kevin Thank closing to back to turn

Kevin Dean Vassily

you, Okay. dialing We release. Thank to earnings in QX rolls for when to you. you, operator. and speaking our you Thank all everyone, Thank again look on participating QX forward around.

Operator

Thank call. you for conference joining today's

disconnect. all may You

iPower (IPW) 14 Nov 232024 Q1 Earnings call transcript