IPW - Earnings call transcript Q1 2025

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Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss iPower's financial results for its fiscal first quarter 2025 ended September 30, 2024.

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 Liz. 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

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

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

Chenlong Tan

third Kevin, reduction continuing year-over-year good define maintained cost We the our in quarter while afternoon, a momentum in expansion to expenses. operating you, Thank to and leading and everyone. gross margin a solid structure,

made we the we partners. our are increasingly SuperSuite our key as chain, By SuperSuite onboarding service in platform. chain supply valuable across solution Additionally, supply capabilities, progress enhancing partners our positioning expanding an for

We also customer components offerings By continued to analytics prospective on further a end-to-end our robust work today's strengthened complex by newer and Shop on pipeline such TikTok our across these broadened our merchandising, supply and solution and diverse e-commerce, logistics, as sales partners, comprehensive reach integrating essential base. supply our technology through we a business, AliExpress presence with platforms sales and adding service expanding of Temu, our enhance a SuperSuite In launching offerings. equipped aligning is to data SuperSuite management for logistics. channels, chain needs components, marketing, seamless address chain to with and

of engagement end better platform, supply operational effectively the navigate We to quarter, designed our enabling serve in needs, SuperSuite are scale segment to to align launched workflow which sales, strengthening partners and supplier partner streamline our suppliers plans we interactions, SaaS our better customers. the their the chain the with is between represents to data optimize shipments optimize online and among committed suppliers, and transformative supplier collaborate This each market At This features. and platform other impactful multiple product and clients. our channels, team demand. market SuperSuite's sales potential, unlocking merchandising enabling offers, access submit more enables step evolving our our a in platform gain and valuable seamless key full insight, on

channels, our channel and AliExpress, growing access to which marketplace. partner by sales expand such another U.S. continued others. includes we granting As our platforms I joins Amazon Shop our TikTok U.S. Lender, major earlier, Walmart.com, Amazon XP, chain to sales supply several AliExpress on launching list as of mentioned

enables further reach our access solution driving to to multichannel a our our partners entire robust enhancing sales to on AliExpress underscore offering across U.S. and committed and dedication platform. value consumers are market We that efficiently. more Launching effectively

from We operating led continue for optimizing initiatives to implemented year, quarter. the benefit the expansion margin fiscal and gross last to lower which expenses

that are suppliers no as growth SuperSuite, our of supply with to our healthier we can have also worth inventory We operate and normalized. generation. with leading business flow cash need elevated with levels to improved benefiting It's environment international inventories, of lower times from chain a lead longer also maintain noting a level the

reduced XX, of XX, XXXX. approximately June levels our XX% by inventory As XXXX, we September compared to

we before, effort, this to our chain we to from our In significant diversify the Vietnam, chain. operations shipment supply new base firmly manufacturing order further purchase manufacturer, maximize of efficiency. customers partner this a supply to our committed are we first To for we in and mentioned strengthening a strategy milestone As in optimizing our resilience partners. with both diversified our September, completed marking ongoing our new

from enable anticipate to more logistics begin to products reduced sales, us and U.S. the As expense. offer arrive growth. competitive while for pricing These sustainable essential and benefiting margins, production lowered commence an long-term improving in we factor costs will

aspect further role infrastructure By meets CFO, and each scalable Kevin? ahead, more e-commerce, we positions Kevin I serve supply supply to Vassily, are now chain that logistics. over areas, Looking our turn adapt not market these through the a approach and innovation. leader also driving continue financial market-leading reliable changes a evolving to our strengthening will our you our to SuperSuite that we support better take of e-commerce holistic in resilient us will a in from can the and to to call more growth. only efficiencies, to optimization need partners' building as platform inventory fulfillment, more of solution provide needs but results management chain This bolster faster, solidifying detail. to

Kevin Dean Vassily

growth the million to was million. $XX.X to commentary comparison was year decrease Unless activity in by The Lawrence. offset higher ago our of fiscal promotional chain the ago Total first in was $XX.X driven inventory. by year XXXX. to related million of Gross quarter was referenced the period XXXX quarter supply to compared in the in Thanks, down first in quarter is same quarter. $X.X profit fiscal compared million $XX variance the primarily selling partially SuperSuite revenue This otherwise, fiscal all offerings.

primarily in $X lower to reserves. for marketing attributable promotional driven lower primarily resulting approximately selling partially credit period. compared same Net activity. The percentage $X.X a same combination iPower year increased share improved the from negotiations supplier share quarter fulfillment XXXX. was margin and optimizations. expenses a million of offset As by was by expenses and as in $X.XX first write-downs of in period $X.X fiscal to XX.X% million through to the key in revenue, driven or gross loss The inventory or and and QX $XX by loss attributable $X.XX compared in to net operating per gross XX loss period operating points basis of the million was This margin in compared XX% XX.X% to of fiscal the for of fiscal expenses per was certain million iPower pricing ago to $XX.X XXXX. decrease million Total to improved increase in

we of commitment will up $XX be on that reduced as $X.X XXXX. new lender a revolving of Chase, with million The X.XX% to the credit the X compared balance We're confidence $XX equivalents XXXX. of revolving execute $X.X and Total Chase growing XX, million us the institution pleased at Yesterday, debt $X.X to vote XX, our XX, On agreement, was of look to the plus XX% September sheet. facility leading new partnership X.X%. million as by SOFR renewal accordion to feature XXXX. obtain million on November JPMorgan cash and goals. million to were June to XXXX, our a as borrowing of maturity forward Cash to to would allow facility from our announced $X.X Moving a June like to by has commitments an we with the additional secured JPMorgan with as extending compared interest years of million.

to to As addition our margin in our the put made and deliver in optimize sheet continued in balance as that, starting structure enable quarter facility our prepared operating cost for debt the cost is with improvements fruit. our XXXX. for We on now open it further also believe $X in We've SuperSuite by concluded obligations recently fiscal will first It's extended this optimized expenses. Chase. work our I reflected JPMorgan total in goals us combined we've expansion actions, we've reduced our our business and fiscal questions. With We'll remarks. credit growth with these Lawrence to bear to reduction of this gross year-over-year million mentioned earlier, to structure quarter's nearly

Operator

Our Thierry Water Research. Instructions] Tower with comes question [Operator from first Wuilloud

Thierry Wuilloud

housekeeping start me Maybe let of couple items. with a

as had that what service service you expenses. to related and information Can to? some You income us give some

Kevin Dean Vassily

got, we've we part So And X sales other the are our business. wholesale components on of of SuperSuite with related as agreements fee-for-service lines. kind One have side is partners. or resale the the business of

piece. of fee-for-service decided overall disclose line. as I revenue, the part business it So the we of that that service fees are because was, to think, part enough And materially

Thierry Wuilloud

other balance item statement? that income Does had sheet write-down. a is household through million it adjustment? inventory The go you just was the $X.X Or a

Kevin Dean Vassily

the that through No, goes income statement.

million of think, I related it roughly loss, So the that of was operating $X.X to million, write-downs. the in $X.X was

Thierry Wuilloud

going the main line, top line again, it feels think of color was Or as you're your at it had same baseline you you online we give that are the should forward? Or of should in we forward? we inventory the at strategies range million quarters Can there you where some a last like baseline look a we a were going how Is quarter. quarter? think affected If from partner. $XX by the in some different us top of on,

Kevin Dean Vassily

a I think close to being baseline. probably that's

out; quarter historical extraordinarily rightly I seasonal relative was think pointed you patterns. last to our year December

activity. we're far, the not point. of at about quarter seeing through so least that type at this We're so And only halfway

see now of least downtrend. the seasonal at of to don't we So type kind same expect

we, transition, Two, high-cost of efficient last with well, negotiating have to partners. some in the inventory our to did quarter, One, one. promotional that that was of been inventory year that chain, the I product other it as an the as through but from in prior last think process for we is a Lawrence delays here, we manufacturing of getting part summer. move too, stages extraordinarily think pretty last buildup, of looking saw things. over the out, so work the supply to I get comparison year, impacted And thing active point we pointing was that could more strong inventory by in out -- was couple

that. do bit of the a to effect it and had an We had demand. a didn't no that We're of but was that too. a that transition, dampening through top be enough believe line, There so have bit the impact, on little will a on And we line. top longer just that product drag

from standpoint line a think there, the to of think reasonable number of pull. that's we other do can So to ability is from resume. that can I what the any I continue baseline it And the levers our business we to then grow a to top without think about expect number? the

Thierry Wuilloud

So during just Vietnam product the bit of switched so to over little there you understand, there was in some delay maybe getting of and some a I quarter? production that

Kevin Dean Vassily

supplier Vietnam well. coming switching suppliers some as Well, the to and of new a new China within combination on

Thierry Wuilloud

Any TikTok I'm still or or second attractive and -- equally at you've new channel last really Temu, kind those beyond be you wondering channels, still XX X a going of there's to to? strong of the partner. you? for we Or attention equally to months Over your affiliate. you announced so, the should they're if beginning Alibaba X pay the promising main

Chenlong Tan

putting their Temu platform efforts internal but best are orders already, the teams more pretty with and is product team. think AliExpress to adjust marketing still in but probably their they're We portfolio behind our the among new. policies strongest We're small, I The the working them are and X, and has still of together fits among X far. adjust. strategies of got some the potential. to working best so their and working the with with they

administration. Now fate new TikTok, clear of the the TikTok wasn't with now

a other than portfolio has much hope the continue business. the product But to Temu still it our think I better fits X. better much, again,

options want X you attention X Temu to if So do. the will put of on

Thierry Wuilloud

low the forward? teens give you think your Is What SuperSuite in update of us an previous revenue percentage the going were SuperSuite? the I on you that quarter. terms right Can in trajectory? maybe expectations there in for are

Chenlong Tan

places sales. future connector connect successfully of to or The SuperSuite conducting the today accounts the U.S. central including sales overall and platform consumers, in our offline. is XX% online the a every about aspect of to

Now logistic partners. by that, have saying we

announce And -- having financing a suppliers are we will with. though we new with SuperSuite even with chain didn't which partners benefit have is testing We work platform, logistic we -- which board. joined is publicly, are Ant partnership products International, that to Zyla, on supply the potentially another into subsidiary which that for X have a

to that period get time to snowballing see the board. to X we a start of I'm the on X supply chain reduce believe in them partners, like we having pretty supply cash biggest chain on the start usually board. having us And that have inventories. base thing the supply things. to is supply made the in driver up board good future. on chain that X helping is will in a pretty further of need we supply months going on -- growing for pick are partners Now our one chain you its And in coming One the And side, the confident growth them stocking But pipeline selling future. have our to I and growing having supply will have board also is the sales platform, become progress of for partners the after help on having in, chains. And growth chain the and

the will inventories as not for United purchasing prepare secondly, States. or it maintaining for incoming tariff help the are or Now importing to in the increase potential we responsible us

So that getting also than and with places China, will and manufacturers other other we in the potential more researching the help. we're States. efforts in are Together getting partners United

not for It is that So I branded chain well. also as supply for the are SuperSuite outside, chains the just manufacturer supply think U.S. is

focus for for So main next at foreseeable least the is the the SuperSuite platform future. me,

Thierry Wuilloud

when much upcoming percentage try looking to of introduced move you tariffs. increase Or kind I'm production increases along at potentially looking greater what around whole the are you wondering time also you're reaction. in mentioned I'm passed last You a you and at mean, how and I the wondering your to else or? the Vietnam Would you situation. lessons tariffs situation? the from reaction, happens? price learned were how competitors' consumers' just nothing whole of

Chenlong Tan

had increase, few of We for years. -- since have that that SuperSuite XX% started impact efforts. been last of Ever this one the we preparing the we is

working now my also and have particular but has buy some we inventories. supply -- partnership, on us the view just partners, in the So who is which that Everyone their for the only event. chain this plans us manufacture not with ones this that ones for the are we

who of no effectively, those everyone part categories unfortunately, we could face outside for them the as And believe could countries have of the the ones worst in produce to and cost to problem. manufacturers, move same I China. consumers. The already of suppliers other case, a have some but our no So manufacture alternatively the choices, since evaluated plan out and product will not China, the the pass

marketing it and Now of who but be case, not raising in price the to sourcing, that, the can be like has doing merchandising, like sales. to can fulfillment who still doesn't effectively since to a is down the everyone good the while -- that have, forced day, more event do for end it comes effectively to mean

Now we do that well. part, pretty

for huge could avoid on It's will us. is just mean that that I not what it. So people the act tariff, a ones

the China to be going market will like For that price countries just the activity. can other but manufacturer, whole be increase, substitutions ones no the to it's

raise End same, the just price. it the the not. be will are day, We will everyone of

as that's low are maintain better our strong worst to mean raise, that partners long quick as good knows? part that's flexible, I have years But in potential case. and be with doesn't quick a I but who and adapt and when not and bad. is X change It act prepare effectively to most to ourselves, we able Trump, prepared it our have the China efficiently, ago. and inventory will we So well, suffers much talk be partners. Maybe and thing and do talk than think the important think always impact case a I

Thierry Wuilloud

Maybe X revenue, I baseline a about at talked We a last from last nice where I'm over or mid- the forward? you range X gross mean that pickup for a for been to looking that's going ago. and Is question XX XX, high XXs. Kevin. were the you've and reasonable margins quarters, also months in the

Kevin Dean Vassily

over with uplift call well. little Vietnam on a you're as referenced did Yes, made I was unit with let's years will so. the move a The issue, last, of function the What move supply supply move is it, that we the in that the that cost chain. that. think help work intent seeing with bit our of I X.X bringing down

so are And where gross feel we on that good side. margins about

So that that right one costs. behaving nicely. But is could container swing target. container quite I costs thing the now, should that think be The are

So I attention higher now. a gross the to would the that work looking think really suggest people But pay margin at that set line control, bar we I there. we've can are

are people targeting good and to So for a think gross modeling. place we for be feel feel like where I about decent margins that's

Chenlong Tan

start be you thing where model want the than more for model, because on lower that traditional margin product our one add And buy off, SuperSuite see gross I to SuperSuite we to then and the different will to in-house If it. it's take our sell. may

in, But expenses purchase information. the I'll cost. more you give a lot built So in you'll until just then, see of

Operator

Vassily Kevin to closing the to for question-and-answer concludes today's back That session. like I'd turn call remarks.

Kevin Dean Vassily

Bye. to again in upcoming the us on We Have everyone, day. call. Thank look speaking for you forward a good quarter. the you, with joining

Operator

Thank This concludes conference you participating. for call. today's

now may disconnect. You

iPower (IPW) 14 Nov 242025 Q1 Earnings call transcript