NTN - Earnings call transcript Q2 2018 | Eterna Therapeutics Inc.

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

Operator

Good day, ladies and gentlemen, and welcome to the Q2 2018 NTN Buzztime, Inc. Earnings Conference Call. [Operator Instructions].

As a reminder, this call is being recorded. I would now like to introduce your host for today's conference, Kirsten Chapman, from LHA.

begin. may You

Kirsten Chapman

Good us Sara. XXXX and you thank conference Thank for afternoon, the joining today and quarter NTN for call you, webcast. everyone, Buzztime's results second

are open the for Allen today Joining and call Ram prepared we'll the questions. CFO, us remarks, Wolff. CEO, After Krishnan;

company Potential the that Before consumer we and acceptance results for [Technical statements my to Such the reason. based factors on Ram. that results rapidly game forward-looking to over to, actual required ahead, Difficulty] Except are call. to actual information the update Difficulty] Difficulty] to known other and projections conference materially ability intellectual remind interactive Buffalo during Difficulty] cause SEC around comply to industry; statements call me risks, [Technical and technology; [Technical [Technical company's described [Technical West [Technical during turn filings. by not Difficulty] management uncertainties or could growth streams to undertakes other pleasure call, Difficulty] [Technical facilities nature East our other competitive company's company's relationship is entertainment any credit [Technical plans. and with or Difficulty] conference or begin, statements limited expressed with from expectations the revise Difficulty] obligation financial and as cause changing forward-looking Bank; make in and ownership the of maintain and let the Side products, with Difficulty] unknown based growth and publicly or [Technical and related to materially may new implied be to revenue go any now consumer of expectations. our uncertainties more no our Please any this payment statements include, historical It's risks Wild games improve you ability the and our sir. to this may about and the that Wings, differ to future satisfy subject but The or property of results law, results different the obligations fully under call adoption current forward-looking ability are our

Ram Krishnan

and for all joining Kirsten, thank you, Thank you today. us

to the our progress continue steady We platform on and make goals. business

revenues second to For up $XXX,XXX, quarter consecutive and positive The to positive million. X for from year. XXXX achieved again prior compared EBITDA X% XXXX, was quarters. $X.X increased has XX% now EBITDA company at

more Now I into go will much financial detail.

let's So with operational start progress.

on couple have the thought of tablet focused past relationships. chain order payment, and and we to years, improving been was adding the we Over critical expanding which

quarter, announced respect costs, to quality with With simplifying extensions Now Buffalo focused tablets Wild locations our with and in customer, Wings, and our improving bar partnerships. last and most we appeal, both that our we importantly, newest our were within on at I are order lowering going live largest broadening pay product and installation industry solution. beyond corporate the long-term and with XX

card credit a quarter, We're processing stores. also franchise the of high-volume at transactions During location. added we those a

Some as result guest solution, appreciates that we faster high in payment guests turn tremendous insights. can as believe the XX%, generate and which table can

target with KPIs. against services both performing technology pleased are how very our are We and the

the be accelerator. As the growth restaurant Brands, Wild noted Wild Buffalo previously, Arby's, We're Wings, Brands, during the Wings. Buffalo the management acquired working part Inspire Inspire with first and which to is quarter of excited multi-brand

brand to the achieve they on their We best goals, the their continue integration. of how deploy to Buzztime work with process go experience through team as to

improve and that's part with all grocery our mode. where ordering there the to are kitchen; restaurant location and concurrently all mode We deployments. In as tablets. table is Buzztime before payment be store happy virtually and first happen and First, are now break many credit with our use guests. two at and through will orders One good chain, serverless, order We processing lines, and or card service orders have independence QRS have also an went their independent is the or gone with order believe payments are will of able integrate live QSR and they differences: operators must more accommodates long launch to payment in assignments. and markets several in location The quick be the with QSR tablets we will help a new another may August, productivity not mode loyalty, to sent labor to second, and plan may

and sales the marketing. On

design and sales count financial customer stable base market Factors XX, decreased point that customer to as end. out own site I'm compared to improving our report way from the include and half leading to held XX% its -- base, offsetting making lead has continues stress, hardware to of of Overall, attrition which attrition. X are manufacture positioned, installed June Playmaker performance at Our been our March terminations to first classic our we're better quarter's the and through site XX. pleased XXXX.

experiences customers. We better for are our delivering

our XX%. cases fact, on current quality rates of tablets we greater In the at decreased in rates than prepared produced by generation

quarter. several We second successful promotions also have during the

our tied Trivia tied to Some to the games Sweepstakes are Buzztime new Soccer. and play related,

engines, our last monthly popular crowd to to base services. our weeks the We term, lower-cost To get and simplified requires revamping to rights. offerings. Bar, are compete on entry-level over game cost and modules market The annual top management can been night. long line there, management well and appeal, But we our all single-player of reduce Smartest content is that have for pleaser which the started fan system mobile our our earn bragging up Bar To as several are installations the hardware, gearing we growth focused games. developing Smartest over engages now increase a us and of price as event,

gaming Last our as hub work to leveraging and display TVs. I cross-network that the is prior our the our and TV many our from tablet a this build that services. TV this into stack quarter, play our for and this technology and and introduced device products with experiences our content to displaying We on-site, hub -- our goes game investment same site about play updating android all the type simpler also We're using engines, smaller, same talk high-quality packs new let's to lower-cost, technology. new So in-store and install content-type tablets the power envision through -- through synchronizing different hub. onto our android managing

a they're app network. Entertainment type we Imagine display each we to schedule it all if have that Network be videos, content, to able schedulable to TV desire. still internally and Apple be TV system our of is stated and accomplished will quarter, or that. content example, in release drawn, an customer's For run Last goal web dynamic content, QX, can like Roku

our in-house. running version are We first

progress, market and I'll our going the with new platform. bus making X mobile team usually launch lot which also the mobile compelling price. QX. and tablet live to this a happen way this -- of included run ride product elaborate bit First on since trialing to solid what's standards Buzztime's around on trivia, one first night to is meet our which a cases. are mode, is a of We'll in slow free are world the use seeing we current we their enable our to us will We're and mobile-only example a in host hours. corporate little more. time Currently, be last to two revolve We with make end their app intended trivia, week based lighter their we're by live drive year areas: released we've get some to our tablet Typically, game I'll Last up offering events the and early mobile of market. to used host It been lasting at An event tablet per Hopefully, they testing or entry-level of to a on traffic. of version offerings a by event. quarter, our release, event, games quarter,

creates games a is or games offerings. more our market. version foresee venue mobile a on guest our price devices, lowest completed own These flexibility directly their free offering for be be and mobile players greater mode casino tablet will tablets their device. network We of which of our do This let the investments can a in on will portion in mobile future, which second and our our trivia to mobile-only attractive critical play must in inside a Venues Our enable to product. offer be play the investment to network. system work venue development

XXX,XXX procured doing in plays, game: really hour from out second during first broad of per these our with rolled an -- games release, Previously, sometimes over quarter, significant Soccer. we the of internally Buzztime average Additionally, types now at play. well It's an billed single-player with arcade third-party aggregators, cost. we

a the promotions, leaderboards audience attract demographic give hit where will Buzztime days games the will traditional we've can as single-player and us help and and fully develop player. multiplayer and believe fraction modes, broader deploy expand Now rhythm generate from tie these games our of we and own add games a a branded and experience. into XX cost. games as us and trivia allow fast new poker Building the to we These

become are and For Forest We our to critical gates games. games launch which strategy players. deploy Roller content now partners. other ready will Rush, to our all game fresh are Go three to licensing pay This well-known beyond more Content Invaders our to formats. and to Smash,

as future. essential believe the On we model partnerships, our stated are partnerships we business the in before, to

different success we partners buyers further local ad our reach, by to in can to ad right front partners the sales believe size, that Those of thereby, A more our effect. hope network of and making of we being first larger the agreements the half work our should the marketing sell price advertisers these we networks increases see attract partners network. revenue time expect As it to use chance during down, the increases these fruits our enabling should to subsidizing our to their the building advertisers, off expand buyers. Based larger market Lower present we at year. size to next network and working are with more attractive with the creating prices on pay our and increase pipeline, inventory. We to drive with to and year, we to focuses several prices right of a network lower our signed which cost. partners with ad partners

added offering a Finally, we resale means market we've tablet potential other the to of our as or means platform expand quarter, of to first a technology, spoken to pleased by about contract our announced tablet our platform share the for verticals. this a another technology and and appeal it as specifically, thousand a platform can Last making, agreement. quarter. and with since We're revenue we're begin X-figure progress I a color vertical. we've the several more tablets, with provide little We'll

and partner the their local leveraging both jails. system Our operating to our services is to hardware deliver

or jails As sentences. smaller a clarification, for point are are people processing of or serving who awaiting generally trial

inmates these are We this enabling them revenue grow sensor provides this market with adding their access games. over We've is and partner player single with keeping and a course, with for lot expanded found the legal modifications, several that to to agreement fit we share the these partnership services, and next educational of material, our a Our entertainment. services, think to a with a to years. potential great of connected family, with tablets, by

will we share in games generated. the fee. available, we'll player also content, single revenue at Our licensing the while be And are a

received with game trivia recognized bonus quarter. revenue a the and QX to second selling orders our content in of in other to first verticals began Additionally, Games selling Scientific We as respect XXXX. and

several a games are expect here. we're We to create exciting the lot initiatives that opportunities deliver even single had to to The more more to come into third the that of quarter. together. go begin are building to working in on licensing them locations potential [indiscernible] player critical are There see

the financials. I over want to Alan go Now,

Allen Wolff

Ram. you, Thank

other an Decreases the games, initiatives our revenue. second per that For hardware XXXX, lease revenue stream. hardware time the compared count increase report new a $X.X quarter, recognized revenue mentioned as related I'm of in X increase XXXX. which in million site included on to average by elaborate in for lower sales, as million, the to quarter site are during of former in subscription key revenue, type of in revenue I'll Equipment to $X.X and sales call. the revenue we our equipment revenue is were includes revenue which due another second to revenue revenue, lower for content was first an of our well and pleased which we the minute. a for quarter licensing that part offset past revenue

these from opportunity combined, we X,XXX future. relatively still revenue ended initial XXXX. flat is start $XXX,XXX with compared the roughly of great quarter our first believe Although, quarter small is the categories at the when total our sites, this We for to

of XX, sites sites, As X,XXX up platform June to from our quarter. end at of grew tablet the last X,XXX

Our our installed XX% tablet of platform comprises over now just base.

We platform and count the site to site of for anticipate tablet fluctuation will classic the continue year. migrating remainder some the in

expenses. by quarter second increase to direct hardware an was in direct equipment offset quarter of million decreases freight costs associated wages, revenue were primarily $X.X and $X.X Second costs depreciation up the and from due of in The million, increase XXXX. miscellaneous field, with in the other in

mix due of down a the quarter. shift revenue from in was margin our second quarter XXXX the gross in to quarter during Second XX% XX%,

decreased for lower the $X.X period year, million quarter, to the employee-related SG&A For last million expenses due expenses. from to same primarily $X.X

our We yield try company the to to spend long continue best results and to for in the financial optimize resources term. the

XX As from of XXX we full-time today, down at last employees, time this year. have

anticipate we million approximately expense down XXXX. year, $XX full from of SG&A the $XX.X million, in For

loss quarter, per to share, $XXX,XXX $X.XX the net $X.XX per For $XXX,XXX or compared a loss period. in improvement year the prior or was second share XX% the

XX% the and an and quarter half pleased for XXXX. the was ninth team EBITDA prior is our by quarter. from operational EBITDA with $XXX,XXX year increasing quarter, initiatives, the in EBITDA of are the how consecutive EBITDA performance positive our executing our We $XXX,XXX in marking of first of strong

primary cash of XXX,XXX a we At existing Difficulty] have of under XXXX, facility a shares compared issuing our [Technical bank to of X-month covenant June $X.X EBITDA compliance credit net million XXXX. were included quarter million of We covenants. at adjusted we positive equivalent quarter and stock our for $X.X XX, common all at million our million raised $X.X in As which $X.X end, second with and of EBITDA proceeds of end anticipate and trailing with financing, to remain half we lender. were by group a year-end the

of our at in was in ability flow our with half development company by reflecting investment provided operate first flow XXXX, the consistent we operation invested cash CapEx $XXX,XXX $XXX,XXX, to activities neutral. XXXX. cash roughly software have For Year-to-date, the and

end. to million $X X $X.X capital working million $X.X Our over negative increased million from -- to at year-end quarter at XXXX

As recall, reclassified may we of earlier with our to this short-term a portion long-term you loan debt. year, our primary lender from

The and Strong the first has us half believe equity regulation had positive results: path expense to which sheet, of with XXXX shareholder of EBITDA regain put the performance, compliance strengthening consistent a balance NYSE we for several management requirement. on the

revenue. new will the we second line will I shareholder focus, call While also back top this turn continue anticipate Ram. over XXXX for with of by now half drive value launching we to and performance the increasing products

Ram Krishnan

Alan. Thanks,

like to meeting. would corporate recent close, annual review our Before I I governance in

Changing profile, market Directors. the improve creating Thomas new new have will were perspective. and composition relevant Simtob a and These have to of Last out helped and and X and our board energy complement experience. continuously and bringing Board to different a governance new our changes industry from board from individuals, the opportunities our impact sought makeup year, Greg board. Richard both of out seek We appointed

have spite last votes of positive XX% a stockholders We XX% on to to Our read transformed year. approximately believe offering, report than they votes from what that votes turnout overarching late master experiences. an We one service delivering of average these been being the range a both a this director platform our director votes this received one supported on business build more healthy of than through might X on almost are to and sustainable and a based tenant guest our engagement the Overall, records, Since was year composition multi-market long-term nominees most last strategy multiproduct, did X exceptional we've cast. appreciate received greater of reviewed affirmations from XX% business. year, voting a company direction. in XX% of we XXXX, recently the We based of nominees our year, board their and voting support boards, shareholder you proxies. implementing received

We we through content and And our have to company. stronger, create long enhanced areas challenges a opportunities. term. and the for continue expand of created for assets to those invested persevered make the software in platform, advances based using in player more the hardware valuable company experience to improvements guest We and

quarters the to product, and of positive net for new the we're the have take signing. lot your of your please value to believe And line our new The patience we progress, flexibility, come. distribution We in the and Operator, losses. to Changing yet X is as creating Now products. launching. and our in interest to EBITDA We're adopt improvements partnerships the and we as platforms course advertising a expect well best company new straight delivered and we're markets support. services the that open committed we we're and questions. made of [indiscernible]. for for the Thanks,

Ram Krishnan

talk the for Sara. today. everyone you again Thank in quarter. you, great Have day. Thank We'll you, joining a to

Operator

for This Ladies does conference. in participating thank program. and today's conclude gentlemen, today's you

a disconnect. may You all great day. Everyone, have

Eterna Therapeutics (ERNA) 5 Aug 182018 Q2 Earnings call transcript