OMQS - Earnings call transcript Q3 2021

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Operator

00:04 Good morning, and thank you for joining us for the OMNIQ Financial Results and Corporate Update Call for the Third Quarter ending September thirty, twenty twenty one. 00:11 Joining us today are Shai Lustgarten, CEO of OMNIQ, who will provide an operational overview; and Neev Nissenson, Chief Financial Officer, who will discuss financial results. [Operator Instructions]. 00:28 I will now take a brief moment to read the safe harbor statement.

During the course of this conference call, we will make certain forward-looking statements. expectations, predictions address are the that statements. forward-looking statements opinions about or future All

our the and statements current current our reflect of them they Although expectations not are of business company's we and statements guarantees differ industry today, our for call they no our any uncertainties of required otherwise, best performance. factors are interpret the a a or the cause turn Form and review XX:XX actual a and our risks forward-looking of update law. you materially. certain These cases in Please Lustgarten. filings expectations or by risks whether obligation company's future as and to publicly see involve change view on can SEC that principal and events that and light. information, XX-K that discussion and number in unless ahead. affect OMNIQ the ask not them uncertainties go of control, within new We elements and over consider to business would and Shai undertakes that that since as these you we results other based to are urge now could future will to revise the result the performance I and

Shai Lustgarten

today. Thank XX:XX us joining you, operator. And everyone the call thanks on to

the closed listed in sheet. one quarter, achieved for the we in dollars fifteen twenty third our substantially of million our NASDAQ, equity on We During share balance grew, of raise twenty us. milestone highs strengthening liquidity all we

With we executed cities Dangot law and closed ninety acquisition, AI acquisition long percent enforcement, vision of dollars discuss one million new creating we of cash revenue identification, one that results. basis. I'll fifty of twenty automation creating safety many dollars a opportunities to and that the term we installment the hearts quarter later. company Furthermore, twenty pro object revenue number We for AI, percent dollars new of financial this company XX:XX the dollars Computers we're up third received to power X:XX for public of and with have a in placed the we create by during NASDAQ. on and point million another orders systems October, in selected form million worth list stronger up successful year were growth to well machine over quarter results, five of based thirteen on twenty reached ten Turning milestone million drive The acquisitions major thirty year. is

not evidenced growth expect firm turn our that now demand Neev? supply are to on a to thirty financial in high to Before October take announced results. me Based go deeper XX:XX look and continue. disruption, further, immune chain remains than let loans. I as customer over Neev base, million our we of While to by this dollars more orders we at

Neev Nissenson

XX:XX Yes. Hello everybody.

in the As thirty Shai an of highlighted, September eight with increased fifty consolidation reflects million strength twenty percent Revenue a third revenue ended point our twenty. quarter is quarter dollars from eight the dollars for twenty which one, five reported twenty increase million we of thirty Dangot. point of twenty combined of

or a thirty twenty eight dollars of the the at loss first the of three quarter zero the of in five thousand loss Shai? related operational eight five to Let for a increase talk were market. or Total twenty two per million twenty. before nonrecurring one to first adjusted nine X:XX the and a consolidation one balance of me in point three amounted quarter twenty. hundred operating of for as the million for about a quarter loss Shai as of September back share of dollars seven twenty interest, million point loss point dollars expenses XX:XX quarter reflects our Dangot XX:XX dollars ended twenty per traction amortization million eight EBITDA third were to compared point of zero Net ten certain the nine period loss compared EBITDA, As and twenty compared now acquisition. of one. year. over quarter one Cash point for the adjusted call meaning third dollars was dollars and to taxes, quarter dollars more million expenses Adjusted twenty continued well eight loss the achievements turn last thirty as dollars outlook. the depreciation well in earnings And point five to point to share dollars of million

Shai Lustgarten

quarter Neev. you, better for good stronger further it's not us, growth and success. was Thank of quarter QX company another position and just for a XX:XX

based and Dangot vehicle algorithm. Israel solution facilities OMNIQ’s third sense both the and complexes, shield, the and during is our external Our Machine by our the designed received our QX in assembled fifteen vision the Vision parented an Shield, First, chain supply of automation the includes integrated new recognition Ai includes in XX:XX security and AI I'll machine order system, offerings. sensors, Q starting success QX provide electronic The solution few q of with internal highlights. quarter at and and hacking share to driven accessories alert AI-based AI at now Solutions, system AI security, solutions and system core will our update servers Port of deploy systems. we field which and our Ashdod our an in with

ninety plan needs, than tonnage finish, an during ship Israel with part context, our trade fed increased AI process point start order cargo based ship seaport between Israel is of Jordan vote This an between of Israel's a and of of Jordan. of between demanding Israel the and technology Ashdod For and and Jordan border in Israel received the flow deploy which by order autonomy. order in Israel authorities Maritime the opened to address Port to Jordan. checkpoint largest Israel sensitive tons. and peace most AI the our is additional the passage after from at This the one four size of comprehensive between machine is vision strengthen deploy the ninety agreement solution to confidence more to the This main the is faster point twenty million in spot from passage, authorities we Also world. quarter, signing in XX:XX annual

Kennedy York. Airport management. and solution deployed Airport at from system an airports newest Additionally, parking Vehicle University the we was new contract our the Q announced fifty be in technology. ten hub after top traffic including we by New PERCS enabling International that, twenty OMNIQ Miami contract top including third percent violations. deploy we Fort airports with crime to the includes Sierra AI advanced Atlanta, vision time vision deploy in based Furthermore, XX:XX OMNIQ crack Airport. announced is [indiscernible] a year enforce campus OMNIQ our OMNIQ International upgrade functionality ended Recognition F. for The PERCS forty digital of and down Angeles Shield Dallas, for Worth, of deployed to U.S., software quarter On than enforcement. Georgia [indiscernible] selected vision received Corporation now on selected John more in OMNIQ’s at Los solutions, to identification our was to AI vehicle XX:XX Access based will La the

a channels AI XXX with partnership leading provider sales a into we billion IT The hundred solutions. entered for discovery dollars of offerings in solutions, announced over object five term collection seven in orders location generating million a the the thirteen annual with from identification inform with an from includes thirteen Fortune order long deliver in than devices customers to complete for The including task more we million customer than countries, OMNIQ’s Implementation our XX:XX quarter OMNIQ in migrating total implementation value twenty eight orders the supply expand more point from more one hundred to hundred than these plus in will based Android customer After purchased Additionally, figure ended chain and platform. Windows the dollars million data dollars in purchase comes October of of approximately one alone. hardware. a thousand one revenues. dollars

seven will distributor. in shares, as connect system of largest twenty dollars U.S. same into and first one computerized North thirteen point supply to December the of supply starting the twenty purchase deployment approximately OMNIQ announced also projects mobile centers collect, collections, half eight thousand dollars States. dollars four leading thousand of plays purchase from approximately three we well two. dollars agreement over million new February will of agreement customer Android twenty distributors totaled million the the the an twenty dollars. which agreement, valued The based four has customer. in company Since the from these across a us and and continuing than only roll one a identify, order opening with clients, three Dangot. of distribution equipment over U.S. as for dollars United XX:XX customer designed seven now food America equipment in The in Turning received in from to XX:XX the an as We now IoT top more Additionally, orders out communication multiyear hundred Canada and across million XX:XX revenue food OMNIQ recently employees. is million the includes dollars assets, immediate has received track part to purchase based trace and chain The distribution million hundred computing million has delivery four [indiscernible] which supply additional customer [indiscernible] to and of the received annual centers data million four logistics and

Israeli the finally kiosks. provide credit that Alicia largest to Forbes kiosk Dangot the Visa the we as self-ordering and end managed the four. in two Israel hundred will our in to is kiosks dollars Discover, self-order cards branches twenty self-service announced computer reach first quarter, by for self-service it’s twenty and to total two. chain the of fifty advanced systems. American billion computing countries expectation the twenty the kiosks branches JCB, fast a by authenticate twenty the with titles payment to point selected Canada, one with at twenty EMV that market written global We moment by its smart chips will other twenty developed kiosks have having two of During hundred one transactions. and in predicted well EMV of install chip as install by enrollment article of uses Dangot and as are by kiosks integrated standard food Kelso, with the eight U.S., XX:XX space, According that self-order thirty are it Mastercard, end UnionPay is twenty card Express, XX:XX Aroma coffee

the intelligent balance company and offering, the into in closed XX:XX of Dangot’s our Solutions, offerings list that thousand these and one year total new hospitals added its unique another third Not announced into this home and and successfully in grew a kiosks smart announced transformative million individuals Healthcare on continue Carts Also, the call the enhances reaching now and identification organization, percent point In remains illustrated by OMNIQ's a that metadata our as expect orders closing, our dollars, innovative be turn lead to during in way over solution of and all to October Dangot customer alone. chain customers incorporates NASDAQ the through used a target of fourteen XX:XX have to five seven value efficiencies. Dangot's twenty supports but includes leading up Computers, quarter, of was product. be object in at million our OMNIQ year more to new provider one than great to a selected clinics, sheet, roof, in higher Again, it XX:XX a customers understanding that XX:XX in the solution we series. a and under market software product automation three OMNIQ’s ordering. major for I'll find our thirteen creates that a and supply house over software solution continue markets. for our automation two for award Our fast AI experience healthcare four fit Israel total adopted in offerings product. Dangot also serving are only Today, offered combining revenue enables roadmap recently up we strength strengthened acquisition our quarter demand become huge in and point thirty over thus dollars growth questions. we million with Operator, over We we combination

Operator

Ladies now and the from is for Certainly. open gentlemen [indiscernible]. Instructions] questions. [Operator XX:XX first is coming Your floor question

Your live. line is

Unidentified Analyst

one to new Hello. great XX:XX than you encouraging Hi, percent? bigger Dangot. intend fifty Do ownership and beginning Shai, buy quarter with a acquired

Shai Lustgarten

XX:XX option to forty course, looking we're and have going for Yes, announced And we'll been that it nine doing percent announce the to we do twelve also shorter to the hello that going absolutely. And again. we Yes, very the of acquisition. the provided, we data. are going we months we're is are soon on publicly how to than sooner we than do. be what It's execute, said

So immediately. and for it’s to us definitely a going it we're target do

Unidentified Analyst

XX:XX recently in Healthcare kiosks like the and announced – Great. the Any And the you the related self-order potential can explain U.S? orders, Carts. Dangot

Shai Lustgarten

XX:XX join Of are kiosks. self-ordering I customers course, one we for actually waiting to as room for next that, right can in working this in calls, field so And we're this finish speak. here the largest me of exactly this on the them the

these targeted market now expand Israel North with existing in products are something and our two is and explode as America and this go product countries offering America. in to as proven that now well, very we we other -- that the customers So mentioned, well to can provide And here well. North as to it's our applicable differently,

Unidentified Analyst

you excellent. the That's Solution, cities AI can application mentioned we chief and read talk. in expect Can And explain soon? XX:XX we it more you citizen [indiscernible] also you if about

Shai Lustgarten

saying were cities? You XX:XX

Unidentified Analyst

The solution [Multiple and AI Speakers]. XX:XX

Shai Lustgarten

Georgia. XX:XX solution XX:XX the in in provide vehicles milliseconds field revenue sensors alerts, databases service. on at to of cities in the to the police before We time, agencies, for alerts to definitely, have real detecting as deployment service finishing cities real share cities, then we online as been cross doing notifications the as that customers this providing other Yes, in also with and with are we to we discussed do cities, us. with identification putting Once aimed in checking citations uninsured we've we is and different our the and the and notifications them doing this three data sign that do to to we the use waiting are providing already three awarded and vehicles. in licensed in our twenty first time well eight And are that unregistered more agreement this line the with authorities

So to win-win every them, to solution creating more the more, where budgets eyes to users, resources. in to tweets as law and money in these to we put we life. on and – for our the service and as and service to time we're better on agencies a the city, enlarging our more expand at same for the And same more ourselves for provide street, enforcement, municipalities cities different as and creating putting and it's authorities to the more residents well every enjoy walk safer we actually, kids, create

Unidentified Analyst

XX:XX That's very important and excellent.

much. you Sounds very good. Thank

Shai Lustgarten

you Thank the XX:XX for support.

Operator

Thank you. XX:XX

Your next from Israel. question coming is [indiscernible]

live. Your line is

Unidentified Analyst

the in I'm Hello. XX:XX company.

Israel? your your lot and AI great U. is First, explain know I the Shai. technology parking you results over S. deployed can outside Israel the in in AI in all [indiscernible], technology here

Shai Lustgarten

the family. to and XX:XX welcome Absolutely

solution time we in What gate do lots lot do make machine are where less in a to of parking on detect created parking can the product, XX:XX real we Our even create you either virtual there we see that and we that huge. actually the to didn’t were match out U.S. that's lot, exit We ticket, closer you take situation of where how a the gate the ready get getting parking we can paid, actually lot, the we when done identify and shopping cross you we creating today what is, close paid do that. of second, our entrance doesn’t in know payment in once AI So today raise gate the is, this to data come and the you are digital you payment Israel. by had ticket vehicles virtual in scenario in where and ticket and that without check can the exit. we your already parking digital the are ticket or of because than created, do you that’s mall then lot, with we in what then a is identifying immediately payment many parking whatever in many vehicle and do you you matter lot an there We the exit, are app any to less make life next need you real so the gates. we it lots In we market vehicle coming you in a anywhere you do on many this your the forty potentially know the your and parking that the when lift and a and and parts exit, lot the to we parking ticket. enter will to arrangement, we at parking And a airports do we this course, Israel. with it you're that you it does

Unidentified Analyst

got Dangot steps Israel what XX:XX very U.S? in in taken base, the to are Okay. I I one they a have sell Dangot question. system strong customer the know where also

Shai Lustgarten

that We're the different doctor We're stations, exposing user in and is resellers that in just at that in to same And product, that. from market going something in we for and will cross the collect Cards, doctors are our market looking to the the gather, for in at. we're food the use huge to with and to to these parking two of very Dangot parking U.S we us be to and looking these etcetera. fast provide going nurses additional kiosk there's that healthcare. change solutions U.S., be these customers. U.S get we kiosks cards, And that that targeted also going take here the beautiful and and slowly Later experience. is are in in great into expand products the our in cards, The to And going another self-ordering process are distributors to sale target customers started the parking and the on, into the – the at the products targets with Yes. sell healthcare unique existing solution we're provide first additional and sensor restaurants XX:XX that time going it's data again, through are the analytics us unique going sense to US the -- sensors very the talking a and markets. they are ones this.

Unidentified Analyst

you, Shai, and Thank XX:XX luck. good

Shai Lustgarten

Thank Appreciate it. you. XX:XX

Operator

XX:XX Thank you.

Your next Brothers. question Howard is Halpern Taglich coming from from

line is live. Your

Howard Halpern

you've XX:XX that Congratulations work doing on guys. the all been good

Shai Lustgarten

XX:XX Appreciate sir. Thank it, you.

Howard Halpern

terms In the the XX:XX revenue what quarter? of Dangot, during was contribution

Shai Lustgarten

XX:XX dollars. nine Revenue million was about

Howard Halpern

were And XX:XX that that transaction costs one will were doing in there out? embedded G&A for time actually that any come

Shai Lustgarten

the in Yes. XX:XX costs to that are That all going significant are Absolutely. recur quarter. of to relate next course. There the not acquisition, onetime

Howard Halpern

already combined of in operating a XX:XX Okay. entity? begun leverage improve And you for terms have streamlining the to process

Shai Lustgarten

ERP allow we'll results well months, better operation. first it but on three six it, of course, Dangot we low as as also focus you and when are continue that focusing the on Netsuite fruits, results the Oracle on started to month we Of are we in significant going this I believe XX:XX see system and probably hanging in that's deploying automation see to about the more across the

Howard Halpern

smart bit projects, you city the margin kiosks could over that XX:XX meat and food from discuss gross profile then the just the and distributor. go about Okay. Dangot -- like you again? the from some like little of margin And for a more Can potatoes your profile

Shai Lustgarten

it see, I and that solution expanding expanding software mentioned. understand that and actually twenty to the We profile combined percent parking, we if the that margins twenty again -- four or an and see like safe how the correctly, now like margins in more to in-house the fifty if percent average question from see technology for same can but margin take the percent margins on we five we cities product customer, have the to today, growing if five now The that -- I it's thirty XX:XX above more oriented ranging solution we should etcetera average the the today, you percent to this on twenty or only. see depends should

Howard Halpern

especially I the just of XX:XX ramp you've city what and know in kind Okay. bit see two a but over -- you recurring what just little Georgia, years? some And you to to can do expect talk of generate are the three deployed you really about to smart revenue beginning projects, next hopefully

Shai Lustgarten

XX:XX on to on to percent looking share. we Specifically city a define from don't under a to term end this solutions of depends I but presented. that coming to call margins that's you it, unique business we're going of recurring, about cities case actually be if the you seventy expect -- higher know what the would it the share safe from -- it see this that ten it, be more projects, percent margins would how revenue prefer, and with forward. we -- provide you it's And because how It's expect revenue we then

Howard Halpern

next XX:XX guess, are about you like you touched -- terms of, October there in bit happened a other Okay. months pilots were little maybe I to any of are behind the or the the pipeline, in that but what that other are eight on think couple coming a there I fruition pipeline, in of with you talked cities within but projects in And safe so? sort years six past

Shai Lustgarten

solution that stages year. something pilot total we parking the new are XX:XX already the and from from, have ones with fast that are having on product moving we fast. in-house, finishing that. is offering moving to what actually in we've we safety chain, pilots in definitely having moving and coming executing see like we the a discussed also the Yes, we'll That's new And started kiosks now the cities. with supply this Yes, we're

already. like certainly, I that's from to we starting would but safe this parking this supply say, discussed actual, going year So on next to definitely six will cities be months, see revenue before pilot the the move stream -- on probably chain faster, in we'll

Howard Halpern

XX:XX the Okay. guys. work, Keep up good

Shai Lustgarten

your Thank XX:XX sir. you, I appreciate support.

Operator

Thank you. XX:XX

question is Capital. Hori form from Your Hori Calvin next coming

Your line is live.

Calvin Hori

XX:XX Good morning, Shai.

Shai Lustgarten

morning. XX:XX Good

Calvin Hori

you XX:XX your quarter? last mentioned In AI sequentially, this did what quarter that it call, the percent call last one grew revenue grow QX versus hundred the

Shai Lustgarten

well. close And did last but eighty it We percent, percent The about the that. than was So, what certainly percentage, I percent wasn’t percent to this we backlog grew would grow I growth XX:XX eighty hundred -- say close to quarter yes, or quarter say as one hundred of had one would more growth in AI.

Calvin Hori

you to said grew the well? And XX:XX backlog close that as

Shai Lustgarten

more. XX:XX sir. Even Yes,

Calvin Hori

more, Even XX:XX okay.

that continuing trend forward? see You going

Shai Lustgarten

Absolutely. we I the thus at we XX:XX not What we growth -- time expect growth, see continue. backlog and we mean, the see the same see the to growth

Calvin Hori

a of off numbers Still small already? XX:XX relatively

Shai Lustgarten

XX:XX Meaning –

Calvin Hori

Percentage revenues, which of is – XX:XX

Shai Lustgarten

Are you about AI talking the only. XX:XX

Calvin Hori

million so? about annual million you're dollars AI, run or running XX:XX ninety rate because count dollars eighty

Shai Lustgarten

growth, total more we measured do and advance forward, grow that's And you because of our basically it do we more pace their. why a -- attractive product ten to we're We billion a because higher Well, good are the by if as offering also how if it total wanted to Yes, grow we shows AI. be and the percent maybe and we competitors market in will compared that in airports, selected mean, getting the invest I remains certain faster places grows which grow So, it ten and piloting it right? see we other pie places react but see that XX:XX to do the a that's will. do it depends, percent, over is right? why on growth lot, I keep we believe growing even Ai technology is well, invest stronger you more growth, to so we we and etcetera. always the we performance still pie as with and thing

So, traction and that will the higher tighter. much be I base think

Calvin Hori

XX:XX dollars associated you that's order – floor Is these the just out orders with thirteen announced so AI there orders million any other based factory a

Shai Lustgarten

there very as order a Yes, XX:XX Absolutely. nice there's well. nice

Calvin Hori

I’ll Thanks. back. get XX:XX Great.

Shai Lustgarten

support. your for you Thank XX:XX

Operator

XX:XX Thank you.

question next coming [indiscernible] Williams Your Matt Associates. from is from

is line Your live.

Unidentified Analyst

question. Shai. to Hey, with Associates. [indiscernible] XX:XX questions. appreciate Williams A I a of opportunity the Matt couple ask

can quarter? maybe recurring next we Let or revenue recurring move this six And me talk stream. twelve quantify percentage what the start the just you about might perhaps as look the the or with you it in out, think -- months, like the revenues

Shai Lustgarten

into Yeah. XX:XX you good a on jumping listen call for And us. thank That's and the question, Matt.

the looking I we with number precise couple the as but ten consolidating target we're generated well. to have there recurring all at be precise going mentioned GAAP of hand, still and is numbers data in ones Dangot that consolidated GAAP that create one, are forward. is still As exact times, percent my recurring the something I number well will – acquisition and has The factor don’t as

is to revenue ten it be have see And our today once able get again, the So to number, I'll that, to the revenue. be I provide objective precise in recurring total but percent certainly, we a of already. number higher

Unidentified Analyst

end I then across you've markets, you've listening XX:XX many Okay, etcetera. different And you. these to Thank opportunities, got right, parking got safe just when cities, of of parks, some airports, sorts

strategy, kiosks your to How partners? channel direct a much of effort market an using I'm got or You've is sales sort these sales internal the go thinking versus about some of and effort

Shai Lustgarten

Right.

customers So yes, direct city we our the safe strategy because or our of consist chain have you Direct we more customers do on chain supply and government will supply Fortune enterprises. as project, focus hundred that and mentioned sales projects sales five indirect. work

on So for years got managers account we now. them

and the indirect one K-XX public some in hundred schools use reach we parking as the direct space In the So alone would go only. thousand safety etcetera, can't resellers. and in we more these of projects well the and schools, where are forty universities, to two K-XX U.S.

are course, of lots not parking using we XX:XX all There of more. So well, over thousands are the there country. if resellers we're hundreds as

move we What could a where the touch AI see and actually work the when provide we added better So, and is so software actually we U.S. have resellers yes, only that. putting because hardware, on sometimes ability to companies the call. question. the in see. the systems creates And mentioned think because biggest when they huge that's you finish to point the the leading for mentioned, with then end kiosk, we above us company. there our now term and the but biggest see and now we us they the did coming kiosks, in in again, think what now opportunities value we in for about customer. point this some people I it resellers. like to Not now even today, significant much the work I've kiosk The there. where with of right through to even market customer gives near and in see that chain the parking next -- we house up the food basically, for your That's the when deploy to more And and the got us you the why leading resellers, huge our users allows That's that's to say this

Unidentified Analyst

Congratulations Excellent. the and progress date, the XX:XX on Appreciate time. to

Shai Lustgarten

you, sir. XX:XX your Thank Appreciate support.

Operator

queue. Shai further are the hand There ahead. closing conference for Lustgarten remarks. no go to questions in you. I now will Thank the XX:XX back Please

Shai Lustgarten

you creating support our markets OMNIQ the looking delivering OMNIQ I image continues you for you. XX:XX would I'm again thank all continuing talking I and leading in yet our again team your soon. with like company roadmap great being the efficiencies Thank beyond to and to for forward advancement the identification Thank operator. performance. serve. you, thank in we automation

Operator

Ladies you, and This concludes event. gentlemen. today's Thank XX:XX

day. disconnect have and may wonderful time a this at You

OMNIQ (OMQS) 16 Nov 212021 Q3 Earnings call transcript