IPW - Earnings call transcript Q2 2025

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 second quarter 2025 ended December 31, 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 Josh. available available release have the be www.meetipower.com. in press everyone website. This access our was Investor X:XX at today to second of earlier replay Time. afternoon, you, The now, is our everyone. section should release, Eastern at Thank webcast quarter will XXXX call

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

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

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

statements. materially Our financial and condition these may those actual indicated in differ forward-looking results from

on results obligation forward-looking the XX, any other on XX-K, statements, call. no any to forward-looking the SEC statements. time as report as not that the this of the undertakes to undue including which Except These company's SEC, release the or risks to time reliance was publicly Do with revision only September filings on subject law, are by Form date any statements which the revise are made forward-looking of are place being also of required of annual to company our in uncertainties filed and described from XXXX. with the

most supplemental directly been EPS business. presentation financial the also including in measures accordance reconciled measures All comparable rules. non-GAAP have today performance and adjusted net certain our includes of to with measures SEC measures, Our income, non-GAAP GAAP of

the earnings reconciliation SEC You'll find tables X-K Form and this and furnished the release we press afternoon. information in important other to

I With call and the now over CEO, like to Chairman Tan. Lawrence turn Lawrence? that, iPower's would to

Chenlong Tan

and financial results in everyone. delivered our across strong you, strengthen fiscal metrics presence continued We Kevin, operations Throughout while established we sales key and our further channels. our SuperSuite all second across afternoon, and emerging good quarter, to Thank the quarter, both our optimize platform. enhancing

adaptable beyond focused more remain existing exploring a diversification on supplier relationships to network, build also resilient new infrastructure. We and supply by our our commitment chain reinforcing

further Our with sales as SuperSuite is catalogs. drive platform gaining momentum we growth innovative partners for product

fulfillment Additionally, competitive management, the positioning our merchandising. offers chain underscores market. our the SuperSuite's value enhance expertise revenue through in and insights efficiency supply strategic operational continued acceleration the bring that in we platform and

partners, of As grow we will share focused are it we anticipate capabilities, mix. on of advance pipeline as larger overall our revenue scaling we our SuperSuite's prospective and a

from logistics, took meaningful partners data analytics offerings. optimize our merchandising strengthen steps by to and quarter, value-added functions we critical integrating This across service SuperSuite to

collaborate our international fostering common connected is market. fully in reinforce partners to commitment sales a where and enhancements U.S. all These driving a both that towards ecosystem goal

positions for expand evolving the tools integration solution e-commerce supply shifting partners long-term the comprehensive supply operations leading chain for as optimize we landscape. efficiently, empower and with chain, their This SuperSuite across dynamics today's success. seamless creating our to market approach a By navigate and collaborative

to interactions insights, capabilities well, by enable efficiency on make designed merchandising channels, refining access SuperSuite collaboration providing supplier facilitating continue steady its to portal multiple progress operations. as collaboration and strategies. recently optimize seamless improving We our data and streamline supplier is enhance with This to sales launched shipment to platform supplier

artificial further us smarter intelligence foster advanced the decision-making researching part As will enhance analytics, routine are greater and platform's enable suppliers' predictive the of these while ongoing partners driving teams applications chain. features across our supply Integrating to efficiency automate provide we engagement to tools. stronger actively innovation and processes internal our efforts, between

launch revenue We into our like have continued streams channels always as AliExpress. diversifying evidenced prioritized and by SuperSuite of the sales new our expansion

channel focusing record Our Amazon, expansion and a approach to operational on on we is sales channels presence strengthening our established well-defined track have where processes. like strategic, our proven

TikTok, avenues rapidly to at social commerce we for demographics momentum continue and to younger other in the and which sales -- channels and exposure the time, space marketplaces. brand Tmall, unlocks access expanding growth new same our like revenue We on build growing offer which

underscores to expanding enables comprehensive commitment and multichannel the in greater our Our partners globally efficiency a both scale. customers providing reach our across to that and channel to these and engage commitment U.S. with diverse solution

level, the structure continue in our we and results as gross At to expansion operating delivered our meaningful to business. efforts operating leverage optimize ongoing cost have margin our drive

commercial legacy our as we on data-driven, company. our shuttered are competency a now focused officially and as consumer core products technology-driven have business also hydroponics services We

chain, inventory healthier As have to we lead have which from as to continuing mentioned before, operate times we normalized to compared with us supply years. enables lower benefit recent are a level of

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

diversify strengthening strategy a chain. we effort committed is and building we A the to global say, efficiency region ongoing supplier As supply any reducing key operational our enhancing fluctuations. part resilient, of ability chain often and more dependency navigate single our on to our network, supply remain adaptable to

a sourcing both step expanding by partners. of and Last forward quarter, we manufacturing reinforcing for base Vietnam, took our customers our to stability significant strategy the

we expect lower these including logistics and we to generating production As suppliers, with costs. benefits, begin meaningful sales diversify see further and

supports also macro competitive enhanced and able us chain changes, to our to react quickly business. efficiencies offer structure ensure margins reducing iPower We that flexible elevated plan exposure These long-term to cost enable lead optimize our a will involve strengthen supplier and more identifying growing Our to our further position to and new robust, optimized will potentially our for be more growth. supply restrictions. sustainable pricing, supply cost chain continue import partnerships times,

and our our positioned momentum we build ahead, initiatives. to execute Looking are on strategic well

continue expanding will partners. capabilities our investing in enhance and while for channels further drive SuperSuite its We sales greater to value our

We infrastructure to evolving strengthening positioned iPower for deep our of in well chain that supports supply every are long-term resilient, and supply our partners. and management drive warehousing our aspect a we By of growth e-commerce, ensuring both merchandising, the logistics. leveraging chain, efficient demand committed to chain are and supply expertise optimization,

chain we as position end-to-end our we we forward, to M&A adapting opportunities As on as agile, solutions. potential stay move reinforce leader will in supply capitalize dynamics and market a

the I in to our CFO, over more our Vassily, Kevin take you now call turn through will detail. to financial results

Kevin Dean Vassily

ago referenced Thanks, QX quarter, in I'll otherwise, into commentary the to fiscal the so comparison is Lawrence. Unless year dive results. right all variance

Total largest profit to product revenue XXXX. channel of million partner. supply compared in quarter to our by Gross greater second the XXXX $XX.X primarily fiscal fiscal driven million business $XX.X same $X.X XX% our fiscal the sales chain SuperSuite million quarter The compared of increase increased second growth in as in $X.X of to the as to was quarter increased XX% million. XXXX to in well

ago points to a revenue, gross was in increased XX negotiations. supplier driven year margin period. by through improved key compared XX% The in of the percentage primarily As margin increase basis pricing XX.X% to gross

attributable for same in fiscal quarter to channel XX% improved second fiscal attributable in million for The XXXX. iPower expenses in same compared selling to iPower for the Net QX of to share Total $X.X per the improved and or $X.X fiscal per $X.XX to loss net primarily the compared loss partner. million in expenses a a period to period was to fiscal income by operating $X.XX fulfillment largest expenses operating million driven $X.X related or lower million XXXX. decrease our of $X.X share to

December equivalents balance Moving June to million XX, cash of and million sheet. the XXXX, XXXX. $X.X as to XX, were $X.X of compared Cash as

As a XXXX. debt $X.X of XX, compared $X.X result million was by paydown, of as to June to total million XX% reduced debt our

another implemented expansion nearly of continue leverage. improved year, from reduced optimization As period Lawrence we margin we gross mentioned earlier, We've initiatives fiscal by and obligations debt benefit reflected to last our by the also operating our $X growth our our enable goals initiatives, in These to ahead. June on million execute our sheet. to compared reflecting strengthening should us to with accelerating XX, our commitment business SuperSuite coupled XXXX, balance

for concludes up prepared We'll it questions. This now Operator? open my remarks.

Operator

Our comes Wuilloud Tower question Research. Water first Thierry from with

Thierry Wuilloud

business, if slow right, main categories, questions kind few with mean, quarter, fan factors? a A on would your the sales. seasonality other the we In product fourth I of look seasonality, fans. the there be other are any driver But for quarter there product at the

Chenlong Tan

bit line our quarter. -- on doesn't of better business business. products perform especially We fourth season end that the but well, the a on performed a quarter little that's have retail like I'm Historically maybe with share side mean... smaller hydroponics online for clearly quarter, than sorry, the It quarter fourth like

Thierry Wuilloud

Okay. one question more sales. on the product Maybe

You But of revenues. letting letting closing rather and hydroponics of shuttered why I just that actually know go? smaller of it your you've become been business kind the it, said it deemphasizing business. smaller you and commercial it percentage down line a than --

Chenlong Tan

to a to have and it business. retailer transitioning here much, to we platform. much services online a ago. contributing to revenue for to -- from numbers hydroponics. SuperSuite no with supplier as a longer meaningfully become and business contribute hydroponic facilitate like platform ourselves to that sales now offline our connecting financial retailer more steps we just meaningful the globally. it are down online We potentially categories transitioning before, that's from the not across a services categories -- any anyway merchandising are and long goal chains, our online hasn't as sales also with to accomplish commercial multi-category seller and By And to hydroponics channels ourselves like growing other And compared goal, wasn't retailer the It multiple shuttered that logistics, -- provider for

Kevin Dean Vassily

And Thierry, it's Kevin. Yes.

Just this commercial clear, the side. be to is

hydro the be that selling would But of to do channels business portfolio commercial consumers. product our commercial it's this part we're product we still We directly and were as officially piece the online to through shuttered. we've the have So where operators. that selling

Thierry Wuilloud

Okay.

Okay. Great.

about us that you kind Moving Can of kind you of is -- update quarterly you give I'm forward? of a going on going can how pipeline. And you terms drive partners many business there how a on then an new what's strong what in basis? Or curious, to a SuperSuite. partners limit onboard to currently talked of have? many

Chenlong Tan

Yes.

indicate think the partners don't December the much, numbers that like XX% is quarter, side of -- contributes we quarter, I share -- last -- of now the While it I business about can SuperSuite what of the sales. you have the with

growing much it's fast. it's much, -- growing So

Kevin Dean Vassily

can another a million Maybe data use, year piece $XX of run roughly Yes. It's rate. you Thierry.

prior the year. of So kind pretty that's up meaningfully from

Thierry Wuilloud

at Yes. time, year, on right? recall, $X million million $X if were more run Last I or this annual you rate, a,

Kevin Dean Vassily

We well might a it -- now. I but definitely this we are that year, higher below where think little last right we than were time was

absolutely gaining and we're approach. with So progress momentum this

Thierry Wuilloud

Okay. things go? kind how And stay pipeline any the of there way to describe of tuned new just partners see or and is

Chenlong Tan

time, -- difficulty] I we can partners that very we you tell healthy sign is We are with stages. a different actively board at We at this have are sort of partners [Technical we What like them of that potential on engaging not number a continuously.

Thierry Wuilloud

I of summarize he Kevin, you understanding kind time Lawrence. had Okay. said. can a Maybe hard what

Kevin Dean Vassily

up. No, can that take we -- in how connection Thierry, the we is bad. take breaking about follow-up that call. Yes, it's

Thierry Wuilloud

heard and impact pushing relationship relationship. even attractive? you one Can more does kind mean, that it reduce anecdotically I Or last way? continuing thoughts Okay. the smaller you had that around I've on some question. of you there? And players of that? that dynamic maybe -- in those comment XP the Amazon of like of towards kind more to of fact type a out relationships And -- healthy was I that it whole their one kind of make any have any does just

Chenlong Tan

concentrating get that's -- resources the are probably Okay. reclarify, And that actually, actually talking smaller better impact meaning like about for that's I we good Yes, to relationship thing think to XP larger ones. don't us. focusing they Just a equation? servicing on to good, and vendors, you it's are Amazon moving

Kevin Dean Vassily

X less starting where And that inviting year prior aggressive to probably to the onto think into yes, pandemic, that suppliers dynamic was happening a first-party the in pretty that Thierry, of set. I the is terms weaknesses that something observed we've cetera, the the think, I Amazon some platform. execution months expectations operating maybe had pandemic, of of had a But and little some vendors et revealed that history, with Amazon in

that during time. the some measures. this view, our view think fairly for period, we on I on that been executed that going so well Reiterating And has is Lawrence's Amazon metrics actually

of our it anything, relationship there. if has strengthened kind And

in for the be very, ability us to natural of to you're share to of kind XP attention opposed of platform. think because a a market competitors some kind ways, you're your I selling off can platform amongst consumer very So as when that differentiate set trying large third-party in Amazon's on better opportunity to get

So we we're right encouraged what now. by see

Operator

the closing like Vassily remarks. call I back to for turn to Kevin any would now over

Kevin Dean Vassily

to want We today. we speaking near conferences care. again, again and everyone Thanks the some forward Well, thank dialing future. in for at take earnings call our you in for to quarter with and March look potentially release and

Operator

you concludes for This conference. you. participation. the Thank Thank your

You may now disconnect.

iPower (IPW) 13 Feb 252025 Q2 Earnings call transcript