OMQS - Earnings call transcript Q1 2024

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Operator

Hello, and welcome to the OMNIQ Corp.'s First Quarter 2024 Earnings Conference Call. My name is Holly, and I will be coordinating your call today. With us on the call are Mr. Shai Lustgarten, Chief Executive Officer and Acting Chief Financial Officer.

Today's call is being recorded, and you should have access to the company's first quarter 2024 earnings press release issued after the market closed yesterday. on Relations available website of is www.omniq.com. at information the section Investor OMNIQ's This

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

since current we reflect ask are and number they of not these see of certain them interpret a statements our best consider of light. expectations and and within uncertainties, and future based that that our guarantees industry today, can and risks Although current our in elements performance. our view expectations, they on the business involve These cases, as our and change control, that and not are in we them would you are

to other the to XX-Q affect of review update law. a information, discussion no the X-K, forms or results and SEC of that undertakes performance principal new and for the you unless risks differ future OMNIQ uncertainties any and the actual as result company's whether by factors company's We required revise and cause statements, that filings otherwise, or urge could a materially. publicly events to obligation business forward-looking

the prepared company taking the time be permits. remarks, Following as questions will

turn call will to CEO. Shai Lustgarten, Lustgarten, I Now the please over Mr. go ahead.

Shai Lustgarten

initiatives much, our for and strategic of analysts you've as we at I investors, us extend OMNIQ, appreciate the thank so recent and you welcome behalf team the entire our all future. to performance, progress for We operator. our taken and you Good morning, with the On a Thank the joining discuss vision us our be of today. guests. to time warm

enhance we and and insights are interest as us shareholder together. forward new with to continued OMNIQ milestones updates in strive and invaluable today. you our look We Your value sharing to achieve support to

Security Airport, to business We're our which sensitive existing continued First, the development upgrade advanced over our first announce DFW vision our of machine some and to this new of with our access our also for integrating technology excited I'll and key areas for developments new vision AI capabilities quarter. the from business control safety also public next project enhancing area of Homeland is using The capabilities the discuss enhance enhancement customers. a is highly machine suite of in customers solutions win to AI in attract new a area.

so intend by our health manage SaaS we remotely and this did called We performance in the developing We seeQ. systems our will of that essentially it new devices developed this place be can to our and track functionality. operation and to continue product field. analytics We deployed product the to manage consumers, performance develop the customers their to hardware-agnostic, on this and receive device have all X

management largest the move successfully Israel's kiosks by company. consumer OMNIQ to deployed let's Fintech. self-service energy quarter, Now first In were

Additionally, self-ordering expanding Ben-Gurion the restaurant new our to experience have our traveler markets. self-ordering with with a the enhancing platform a Airport at implement we secured chains global with solution deployed convenience, contract X fintech in major footprint further along U.S.-based

acquisition milestone the leader software a of expansion marking CodeBlocks development, in announce in We to significant Limited, the are into also happy sector. strategy a Fintech our fintech

mobile our business. and Now we'll IoT discuss computing

in contracts this area. significant won have We

us Nestle a device to order from sporting the upgrade and the our food contract notable international goods orders a chains, help XXX recent and Some our forward center million business a $X U.S. in retailer. in and supply a These U.S. logistics to market drive was business for purchase drug largest reinforce stores purchase one new leadership. major of the

a share have to I few updates Next, you. with

current is approval the OTCQX common common and of profitability Group organized focused companies. the by to The a phase investor-focused shares Markets view OTCQX the subject the designed efficiency. U.S. and X the the is securities and tier international trading lease as our of stock operational to application remain to We strategy establish company's our top on for now. listing markets on to an ongoing submitted over-the-counter have marketplace. we trading OTCQX QB situation Inc. First, of and OTC of temporary as in

actively strategic are avenue and plan exploring swift a We every executing return national exchange to to a our ensure listing.

commitment taken OMNIQ be to that the OMNIQ of OTC the standards remains premier and trading reflecting tier to OTCQX, the be In in on SEC filings. interim, market the transparency. requirements continue and and Please on all market, steps the will OTC listed we our the assured diligent fulfilling high have

unwavering of with business partnerships is customers. and return drive the and success. our the as of We're and our we strength XXX our acquisition long-term expansion Our model, business our evidenced in new will existing believe our Fortune our customers which proven consistent sustain profitability to by commitment of confident

plan our operational Next, strategic for efficiency. we will discuss

team management to Our is operational deeply committed enhancing efficiency.

on These implemented reducing concentrating to costs optimize operational at numbers, in subscription more. results allocation, product with expanding results operations to results, profitability. see This showing our profitability. large and expecting reducing the we're further a higher-profit is initiatives sales partnerships regain have improvements includes are growing until lines measures as we QX looking at and out QX streamline towards towards designed efforts and such reducing when financial efficiency, markets, setting those existing robust products basis and products, without revenues. that measures beyond path We costs our strategic utilizing value customers our and plan increasing in resource sustained add aimed a to This operational coming and

we increasing growth, This trends presents solutions as our market for solutions. the current AI aligned market OMNIQ new operate are opportunities fintech about significant Now believe expansion innovative integration well industries, is in provide we'll Across are solutions the with financial we that transformation, good and rapid position and as needs, these talk we both digital in, a such existing customers. to by to Fintech. technology-driven strategic experiencing actively value to demand for that driven product in the add OMNIQ solutions and The We ahead excellence our so customer-centric dynamics, markets. solutions us all competitors customers and can enhance are stay in distinguish our our on influencing leveraging are advanced automated to our trends we positions and operational that where market. offerings through competitors we on to competitive partnerships. continues market and strongly consumer, innovations these against itself technology believe from focus

experienced previous Next, In about XX% the the we reaching financials. XXXX, by million. quarter let's talk first of Revenues from financial $XX.X rose improvements. quarter, strong

hit of a XXXX. high million. last year same profit margin up XX%, quarter Gross XX% in from $X reaching significantly last of gross the Our up XXX%, soared XX% quarter from the record and by

with overall an by XX%, leading total to decreasing reduction to operating last in quarter our compared reduced successfully first SG&A year. also expenses the expenses of XX% We expenses

from in the to million $X of XX% in Our operating reduction loss $X.X first of XXXX. Similarly, our XX%. decreased drastic XXXX a million quarter saw net by loss

per on $X.X a cost $X.XX per the foreign partly from of loss period improved to has demonstrate reflect operations a excellence million, from in also efforts operational our The operational effective commitment XX%. reduction $X.XX XX% not management Additionally, our share currency total in the which These continuing our effects shown The strategy. but share enhancing quarter comprehensive exchange. to losses focus financial reflect only same These achievements value, the year-over-year. basic to shareholder from due loss remaining was for reduction was loss last year. loss the

significant financial effectively We've in manage noticeable and streamlined This leading quarter, a OMNIQ stability. losses. towards to has successfully made decrease operations strides costs

excellence to Our improving indicator operational a is focused of efforts only sales. commitment clear also not are driving our for line, shareholders. creation but and bottom our our This progress value

-- Q&A. over now I'll Operator, Thank for turn the time the you. to back

Operator

[Operator Moran Acquisition.com. question first Pober Instructions] for is today Your from with

Moran Pober

Good have questions, X job on I results. the improved please.

it continue level? continue Like see it? at important please the achieve next do Like you cost as is What plan profitability? Fintech you it business cuts, so explain for product this think? the third Is the is, mix? to Or second can one segment? higher talk it about do you First is question, with what will engine? is My how margin? it the And gross please you question see do growth you my the the quarters? OMNIQ more can an expected Is

Shai Lustgarten

questions. Moran. Thank you, I appreciate the

the our of simple. the course, additional for and, this Regarding very is next next forward the year for going quarter, only quarters not but question, the quarter, first plan

focused We've on reached profitability. are nice We revenues.

thus, We thing we best efforts. cuts. cost have year. and gives us and very course, focus -- And our the by going And ability profitability. execute, a of clear it profitable simple that's something very the And simple of that continue to that of the our but as this these on becoming a to fruits getting That's continue our continued visibility very noticed it's towards revenue simple company our quickly demonstrated in shown growth continue $XXX not growth and shareholders. million We've a and profitability company, our was that's strategy, is, course, I the think, year. be that's to for already

pie continue higher continue market footprint second machine allows the of And this of revenue the our introduced products that on AI comes portion pie grow higher that AI pie. vision we factors. Regarding revenue product, serve. is revenue margins. these in it grow margins, develop in question to that and have different that, we the the to the us machine to course, our total markets mainly with due And -- products product, to the One, yes, vision to X and increase

before, The of now. of is allows that that what to part we're our sold. cuts, margins. We're all cutting other this exactly that working this and year goods XXXX increasing continue factor And cost is that said our the we've right? per on going calls our to experiencing in of discussed cost is we thus, the plan many plan us Again, is and be

Fintech the today that go we is that significantly provide retailers, solutions a Fintech. decided system serve. already customers serve that already that fintech Fortune that the we growing as customers. the different software our other many call different in are solutions, systems of XXX total year-over-year. customers. we to Regarding It's XXX, providing Fortune Fortune Fortune markets market the -- existing go because is a complete it hardware to total we we to We in here point-of-sale and is Fortune XXX, our solutions part invest to XXX already products solutions, And a market

is continue and it growth and manage one very as which to of We by our course, in customers how Today, we existing customers footprint a transactions. total we already of that customers. fintech and, bringing see going new XX,XXX XX,XXX, our on a to the existing is selling we that businesses financial grow exposing course, serve engine, and our nice already it aimed see solutions, their as well. in That to approximately

us products AI allows vision about systems, it you this last markets data-driven are you Same I solid hope thing very and next-gen if path to data is I The data. OMNIQ. precise, the consumers, fintech, with as that which thing our products allows pick to imagine today This answers are, questions. more letting up fintech. course, trends us better us much us providing identify that of get sensors will, it even our would the one to product of bring in supports, that the can say, thus we IoT as another

Operator

is [ for ]. today Silici, next from Your OX Pavlina question

Unknown Analyst

few months you. X so I for ago, A announced company the -- questions have

project? of months for Can The does the of part already on a ago, the $XX it revenue first the announced company been us the few execution And that selected million. update approximately of a one has announced project? include is you the project

Shai Lustgarten

Can you repeat second question, the please.

Unknown Analyst

one Would of the include -- revenue is X like question, already this execution Does This project. the actually parts. answer announced part first the the of you to first.

Shai Lustgarten

Okay.

that these the us. with can are project. customer chain they equipment us food So past. awarded already We have providing project, a leading yes, to we expand centers, of already to products, year, conducted but and lot and ended that a successfully, distribution a et orders because the mentioned, stores, not the over is that cetera, like across footprint involved board operations, space been expand selected IoT have the company. but it larger-scale of across came providing products I older warehouses, first call the items older customer with to and them now are selected we already they there. project been these come been And such we've we Last We've It to the provided, and pilots are our XXX pending we at products, the really board this pilots, in Fortune have in. it the currently

same because was That us that our for orders shows specific because and the currently ones even pilots an potential business same the same not this budget from actually from sign the are receive us them ones, amazing million customer from product which purchase that we same $XX we and passed from our they the budget that for increased purchase that project not have already product customer, the with orders are trusting further all other but even us use provided are and one. the smaller product, budgets that of

feedback. So positive we are very seeing

We are now. $XX the first million already every are we with technology. this this the come orders specific from day providing customer And budget to expecting

Unknown Analyst

second And question Understood. there unique in company Can HOV INCA update you I'm few XX, announced train new the announcements us a September is on face Israeli others. please And referring recognition like project were AI, management. features to cloud issues? regarding the here, these and

Shai Lustgarten

we and the R&D a And done research to lot work, we of R&D of cloud us to for one our our customers. of manage the infrastructures for is the to to our Yes, in and to the biggest more deploy rapidly management that systems. Certainly. allows This work, development. solutions R&D one over invested clients, our are complete expenses -- expand cloud, to have

than deployments working. only in have AI XX,XXX lanes, XX,XXX XX,XXX We the systems now U.S., more

with do also able class We've is power that, through that to infrastructure the the on being our and to that that So increase product. been AI having done. computing

is allows And This the objects the things machine do also pilot really servers. the signed cloud such course, and provided the higher much computing provide, on product virtual identify are stronger as much these And to concluded industries that and the of the where accuracy our already what train to and that reach use can number at of identify that ability out we from projects, different infrastructure or look risks. computer, over with system, crowd because to allow where to we a platform identification AI providing expand like we weaker, there, market, we outcomes vision of us -- the servers go people is come can work from. and of this power faster, we much allows virtual to additional of but the us -- us the a trains do we where one use the in product, we with

before out saving. of the identify he are increasing customer, life risk in the and notifications event that alert anyone and there, provide. alert, them One a crowd of we before us are alert that end increase biggest we crowds this that before a we the accident that's this to to identify situation an we that we situation where it that can we then the wanted due can risks we life-threatening at, risks on alerts it we could create life-saving doing or numbers wants this where the We specifically identify is becomes happens, in us of crowd up to are when can risky and an create happened, this where customer people way situation deployed authorities kind that people the can platform -- every of

that So project. regarding specific that's

is many that which And did really allows the a market. reference for other product out a train and the have national to going great whole this specific it we of with us a fact that relevant is company is customer, customers, to this course,

trained that algorithms we it call The we the specific engine moved other X number we vehicle our immediately interest do, engine. passengers algorithms, the the HOV. the the what identify we the mentioned, our you call we patented from that of trained engine, industries. in What to have, We

with product one, in that military the the presence And identify ministers Ministers are significant product, the also the pilots Prime commercial one. second vehicle. is then was and And are, commercial today it's as partly go growth HOV enforce a defense with deploying after product something very which conducting market, engine the on to one largest, the that that other say, of the already milestone be and this in defense identify we're -- we're but would we in regulations, there course, one. and U.S. integrator actually I well. a this we in but lanes not are In first again, able one, of vehicles enforceable, focusing HOV our the was The in the different side, not achieved governments a commercial the to the are that also people to only the huge is, the on

Operator

call [Operator session, Instructions] turn now Shai end the remarks. the We for will over I closing have reached question-and-answer of the and to

Shai Lustgarten

all you your participation today. Thank operator. you, Thank for

we As call, for want gratitude this and interest belief in close ongoing to your express I OMNIQ. deep my

commitment excellence. Your and support fuels our innovation to

forward OMNIQ road future. to OMNIQ a amazing us are achieving joining the move with the of a and exciting forward about that we so and day. brighter, our this appreciate also of Together, for you. much. the and ahead towards team, We daily. partnerships Thank excited again Have continuing are achievements Thank employees era we we profitable trust look once driving are more you today. your wonderful thank We achievement. into an journey We you as

Operator

This this you disconnect participation. your may time. Thank lines concludes you and at today's for conference, your

OMNIQ (OMQS) 16 May 242024 Q1 Earnings call transcript