Earnings call transcript Q4 2022

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Operator

Good morning ladies and gentlemen and welcome to the Itron's Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded.

I will now hand the conference over to your speaker host today, David Means, Director of Investor Relations. Please go ahead.

David Means

Thank you, operator. to quarter welcome call. earnings and morning Itron's XXXX fourth conference Good issued today earlier press our We release announcing a results. The about press today's information call. release includes replay is webcast A available Relations website tab. to accompany remarks Investor this presentation our under the through on and call the our corporate on also

On today, Financial Chief Officer. Tom we Dietrich, Chief President and and the Officer; Vice and President call Executive Joan have Itron's Hooper, Senior

the call the Following to questions our will prepared process remarks, using operator open described. we the take

call the you financial and turn Before Tom, remind our to statement. I let me over of please harbor our presentation non-GAAP safe

release measures presentation understanding that of earnings available release earnings are GAAP Reconciliations our non-GAAP overall we and current financial between future performance. in Relations our Our information and on website. financial our of and the financial believe Investor non-GAAP enhances differences include and

forward-looking Materials to Exchange insight and update our with reports to any a our current today, duty in any not other Actual call in We and undertake forward-looking are future risks expectations assumptions will made XX, and discussed XX-K in that we that are section on statements. release that statements in today's from made February materially were appropriate of Factors forward-looking. during change presented to factors Form comments These company uncertainties. the and could of during making the to Commission. and Securities current filings comments, statements and All call are based these and expectations are conference or XXXX, attempt and environment. do financial results estimates good Risk of earnings be our subject this because the provide may differ materially this statements operating and faith

the please Deitrich. Now, to to CEO, our Page call Tom over of presentation and the X turn turn

Tom Deitrich

Good Thank us. morning for joining you and David. thank you,

was $XX $XXX from up EBITDA $X.XX. million but was You quarter earnings per a revenue the quarter, was fourth here will non-GAAP overview million. of share shortly is coming hear Joan Adjusted details brief and

direction. Our results components executed fourth the financial well to quarter of were that right EBITDA and quarter late which additional and step convert were expectations. supplied our in in The team the revenue unlocked ahead a deliver

X. Slide to Turning

achieved for which For billion. record the a total new backlog we reached level quarter, consecutive $X.X third

drove the Continued in is strong quarter approximately $X.X or year X.X. demand were ratio. $XXX X.X bookings The to book-to-bill a million fourth of book-to-bill bookings which billion ratio a full

Our be our key analytics bookings the distributed over technologies. driven intelligence continued to network in fourth and quarter by

XX% to of solution network Our outcomes the continue contribute over total to backlog. offerings

approval step Canada Ontario, their intelligence which AMI regulatory their distributed with solution. an to reliability, This Riva initiatives. our and grid capabilities support program consumer for X.X is forward engagement includes resiliency important service territory deploying across received Gen Itron in our moving X in

well leveraging utility our as the vertical, technology extended network SaaS partnership conjunction will fast-growing deploy city water an a and upgrading is our is the to strengthens in as contract In CPS and San Itron Energy distribution Itron's provide also to AMI automation now water network electricity water additional that sister Texas, our Detroit years Antonio, community of a and saws. gas which across technology in with managed XX-plus by services.

market-leading safety We solution, now begin our excited Energy. edge CPS gas of intelligence to are Intelis and deployment bringing to functionality increase

and massive LEDs provide to be city. public to impact beyond services, XXX,XXX the across able Itron resulting and traffic more network, sustainability. CLS the Paris France, and street Paris, improvements entered to with long-term deploying connecting Paris, Canopy savings a energy in energy than by cut up in citywide lighting will a innovative XX% Lastly, strategic collaboration in Coupled of breakthrough lights

business. like and insights turning from would operational some provide Now I the to to X, around updates Slide

aligned are pipeline robust a needs portfolio and our with our ahead customers' investments. have We technology of continued opportunities as

While typically Seasonally, are fourth continue. than quarter I quarter-to-quarter note bookings quarter. that the vary, the will first to we anticipate lower environment demand strong bookings

The some analog current power is supply component and semiconductors. deliveries near for environment specifically showing choppy in term, the improvement with

to as aggressively constraints, these levels inventory to including mitigate available will security. We becomes improve selected of it chain increasing work continue supply to components

remains we nor strong and support experienced any have material of backlog. Customer not cancellation expect

Looking forward, year. availability across we expect the improving supply

supplier across spectrum from underlying including rebalances. improvement the the the are macro supply China supply of potential overall automotive chain. with impacts global is reopening degree as the We expansion, level of demand volatility watching and chain situation supply capacity some industry the closely, full timing the in the The trend positive of inventory

out cost contracts have recent of flexibility have portion elevated. with rates a on improved the backlog. combined actions, pricing Input the Tactical pricing leveled and margin more remain inflation but costs component increased

our to continue to operations plan I want execute we announced cover manufacturing company a as we to streamline further operational Finally, performance. financial stated overhead and improve global that plan and strategy. When this our will complete, our

to to hand quarter XXXX outlook recently I of the plan. will Joan the off cover now and restructuring fourth our details results, launched

Joan Hooper

you. Thank

supply expectations fourth than than As additional from XXXX XXXX component I'll The fiscal on fourth expected. cover quarter, anticipated received of color more us had supply a first, of 'XX, performance our recognize year me to portion shift we provide was QX QX strong Tom anticipated so but mentioned, late the in and let allowing been and QX. revenue component results. in earlier ship quarter a more

and a was offset of summary our segment. revenue turn Fourth versus Solutions Network This Device X% GAAP the due to Solutions consolidated Revenue was decreased of quarter declined to in C&I year both and flat our for Outcomes higher revenue sale in decline of in our business constant by currency. results. last X gas Slide million year-over-year $XXX segments. Please

than favorable to share the in year, prior mix of the Gross basis higher million diluted elevated margin a $XX per or GAAP XXX costs. partially lower operating for The component by $X.XX net to XX.X%, quarter net improvement benefit. tax GAAP the was offset in or points higher income, offset due partially due per primarily with period a loss share million $X.XX by compares last income was of year. $XX current

Slide X. Adjusted million. $XX Non-GAAP Regarding $XX Non-GAAP was net or share. quarter non-GAAP metrics income income was million. $X.XX operating $XX EBITDA million per for was the on diluted

million QX, Free negative an in inventory. driven cash by was working in $XX increase flow capital, particularly

We will continue components they become to available. as invest in critical

a ramp The revenue year-over-year gas revenue or fourth the increase Slide driven The due constant of product by outcomes currency Network of at decline Revenue by revenue Network in Looking received a was business EMEA to supply a a the increase as due sale currency. $XX business million, in million $XX decline constant XX% or business. and deployments. was the in decline the higher our Solutions sales segment new X. currency. pruning. continued the was Solutions segment prepay constant product Solutions benefited partially million, Device million on component $XXX C&I the increase $X The in in software late was was quarter. license a million basis. well continuing to XX% was and as X% million, from $XX increase existing by on or extra $XXX offset

$XX million year. lower revenue foreign prior currency in versus changes Lastly, resulted the

year-over-year EPS non-GAAP on bridge Moving to Slide the XX.

of large than share $X.XX our negative impact The was expenses. share, a operating QX due tax profit per operating A year-over-year more XXXX. from year. negative positive and higher QX prior due $X.XX the booked down diluted per the non-GAAP gross a benefit of performance. tax Net impact had in Our offset to was lower impact performance operating per positive $X.XX EPS to tax fall-through of share $X.XX

compared segment increased operating by X%. $XXX Turning Network component and mix, due partially margin XX%. a XXX points XX, by partially fall-through increased basis due of margin the the Device gross million with the XX elevated improving to Solutions costs. was year. basis revenue gross I'll margin of of margin higher margin percentage Slides points XX QX million margin, higher offset business to Solutions through to revenue gross of of with by XX% results Operating $XXX expenses. prior with Gross discuss was operating offset

favorable to partially due fall-through and operating by basis offset million points from XXX higher with XX%. increased basis favorable due very mix, the was higher to increased XXX margin to margin increased costs. improved offset points to expenses. margin due prior XXX by gross of profit $XX component Gross basis points and mix lower increased operational XX% the of Operating revenue XX% gross solutions Gross Outcomes profit, XXX margin basis points due R&D the year of of partially investment. the of margin gross fall-through Operating efficiencies. higher higher

variable higher in X% turn points recap than XXXX. to On XXXX. with $X.X $XXX and year further basis, capital was the X% our compared was per Now revenue higher XXXX in capital XX.X%, by offset compensation flow per Slide $X.XX decrease was share usage, was constant down free basis compared currency a XXXX. payments was year. to $XX lower cash the Free Revenue $XXX to in revenue was full adjusted million customer $X.XX results, down EBITDA from $X the component down approximately briefly was please of billion due million to flow versus when lower and of share million partially ability the Adjusted our The which higher cash year. shortages business, EBITDA, XX gas C&I revenue for X%. Gross with demand. expenditures. was Non-GAAP working limited decline margin was due to sale prior The earnings prior million in year-over-year fulfill only XX.

at liquidity $XXX Slide were at fourth equivalents was million. end quarter. flat of remained QX. and the and to Cash net end debt at $XXX of the Net Total leverage quarter end XX. the fourth of debt and was million I'll X.Xx the debt $XXX Turning the million. cover at

supply deliveries to I'd be revenue year XX. We the and year. range including do XXXX We of some somewhat be Please supply like year anticipate anticipate cautious to to improve throughout timing gradually nonlinear on provide our billion. expectations. constrained to continues the $X.XX will full $X.XX XXXX turn of the the to unpredictable, quarter within component we billion to you a that but in remain Slide as color environment start a

normalizing approximately share. for diluted continued be somewhat range XXXX guidance year segment. and is At At to variable our annual is We driven midpoint X%. growth. Devices year-over-year operational expense anticipate to in XX% by the by rate of our full an midpoint, XXXX. earnings $X.XX growth guidance a is This Outcomes growth in both in per years, X% this the the tax of muted in $X.XX approximately decline due EPS year-over-year increase This the partially to a within and non-GAAP segments, to expected offset the growth Networks compensation is

target costs XXXX. the variable to and not we payout The targeted at payout are in results compensation were planning in our XXXX achieve

heavily of be guidance will expected to half a effective our earnings Other dollar skewed Given and improvement the in euro full supply throughout the average year. assumptions of approximately full year non-GAAP $X.XX exchange tax the approximately the rate foreign gradual currency average are million. an outstanding XX%, shares for of $XX.X U.S. second year, of rate year to

quarter Now, first our to Slide outlook. for please turn XX

the Given which the range providing anticipate our of continued versus first QX. revenue a in in of is performance. QX view $XXX million our midpoint I be $XXX We volatility am component at supply, the to flat also quarter to million

EPS non-GAAP revenue anticipated slightly As anticipate contributing first delivery converted given supply in to supplied was my was is increase the This expense This to QX quarter. negative very the quarter initially much be to and and QX's $X.XX We the opening due a in product unexpected favorable lower be QX. comments, is $X.XX in to variable delivered mix first share. to revenue expense per range sequentially a an fourth late the I within down in mentioned compensation shift rate quarter in from higher in tax of to QX, XX%. diluted

the to XX%, While the amount rates on fluctuate based quarterly the will tax year onetime of earnings we true-ups. rate full anticipate XXXX any be and approximately

this required in to $X million. are grants is expecting rate the prior first QX For expect true-up Including expense increase related to stock be to of onetime the XX% in million a a overall tax impact XX%. true-up, of quarter, range the This we $X vest. of we in the of approximately tax

impact to In the continues results. constrained nature supply summary, and unpredictable component of our

supply However, to started in our of quarter. appear signs improvement fourth

We supply optimistic of XXXX. will see throughout are improvement availability we

is Slide on to details week, new a this actions our as of Directors the announcement plan a plan. asset-light to made streamline well Last manufacturing overall morning. XX of restructuring Please our Board includes operations approved and in company. strategy as our we overhead This further restructuring the turn continuation for

annualized generate cost project XXXX. by between early $XX savings $XX to million million. $XX should project and substantially We this expect million between $XX and be million The complete and

to back the And turn now I'll Tom. call

Tom Deitrich

distributed close approximately Thank our you, endpoints approximately operations To and capable today. today like intelligence expanding million million by I have Joan. shipped offerings. in highlighting applications DI date, would have X.X we to X

industry. next the ecosystem collaboration view our grid DI we the already and transforming city and of consumers. and industries. grid to how the With scalable manage that of long-term Smart transform consumer partnerships, energy partnership with Through relationship a accelerate builds the announced and new rapidly transform approach enable management of partnership cloud and changing platform and to meet and enable smart partnerships, a resiliency generation solutions the between how proven includes distributed will energy our their utilities improving recently utilities We to the demands innovative consumer Water our users upon to end a utility and Microsoft Energy resources. That will utility relationship for adoption with and

Thank open today. you, Operator, line for questions. for the joining everyone, please some

Operator

[Operator the line Noah Instructions] coming first question Our of Kaye Oppenheimer. from with

Noah Kaye

the your And interest Can talk you pick Tom, January? release, might for to more sense I DI the different revenue seeing around from a coming in about gotten manifest in really offerings? want little you a of give the like ecosystem And in think some you've right are off up what following with the around maybe us remarks XXXX players start strongly but the you opportunities DI expansion of left DI Who demand look the of revenue the the in this where model I the platform. actually you from? bit to mentioned would announcement

Tom Deitrich

they think Sure. a that companies Noah. it companies. types of period an is ecosystem Certainly, as large applications well model solve. to from as to of a on interest revenue the that a power on to kind subscription per our application is or see are from small tend used It and a that whether are for hosting that a get. the basis swath of higher mix engagement application basis. little to where there whether third portion trying utilities industry. that efficiency it's great be then to as used bit problem time it's of We host their a working and the Thanks, revenue a of DI in is accrues applications in a a a dependent third-party a what party, want or Itron usage The more we consumer model, owned of broad be own we are they're develop there's applications. if and a of certain per fee terms that really on depends time to it's in partners interested. of applications things a types applications. It's Revenue quite largely of And maybe on

applications then case and is in stabilized layering in deployed, initial the where timing. and case are right they or it You're services. incremental AMI start utility a of by terms as Think the networks of use

how to by the prerecorded tends follow now like it. X million that's of maybe the point more remarks on in months it or running to field and the where terms you're about in in in endpoint applications of so terms mentioned per sometimes applications deployments I So XX see scalability multiple our in kind running model starting smartphone of of today, end a X oftentimes parallel in

Noah Kaye

on XQ. had outlook. XQ Very clarifying to a do some thread sounded like around for to shift revenue from want leave couple of for ask others just of what helpful. questions 'XX It we that means outcomes. the might I into it pull the I

add XQ not the outlook bit just I seems little improvement. revenue is year like the to it have with if really XQ, for So full much a annualizing would been

the in improving assuming So your terms for And kind outlook if just that given of I the rate? increase the kind run of revenue throughout comments go level wonder the a chain, we are of bit. up around as square year? of is we expectations could conservative what little you supply How

Joan Hooper

Yes.

at me a stab Let take that.

after are on that excite supply able we current right is the what improvement now, view our year. upside say Certainly, provided current that based in would of the gradual expect arise. that the is the view. with to is to to So there suppliers when our outlook extent will terms we suppliers expectations discussions But the we through

to And so would we would the be all continue things the year. grow being expect normal, we point, QX low to through

And it's as if think see assumption or revenue midpoint But is than So do range. over which the higher we pretty around the wide. of kind range, be X%. growth somewhere the high the said, you the different I of of low-end take end you a range will of the would

Tom Deitrich

revenue. to terms way unpack the fourth we're upside to is if And quarter it's of definitely point turn -- able add demonstrated one of color additional the that, that I in potential the products being eager that team We technology very components an turning customers the of quarter in really job the provide. got exceptional and did we that for and are late the

we half to of as there volatility improving mentioned, Joan in supply and in want be turn the as them of those do in a we a get to variations some be timing, will the with position terms view components, year as certainly over quickly of can. year. that So We think, as first the we

Operator

of our from question And with Cowen. Jeff next coming Osborne the line

Jeff Osborne

one semiconductor quick the for of was the full impact Just Which you a the wondering, here. couple quarter can Joan, think... do year? was and I ones quantify what you

Joan Hooper

pretty quarters quarter the to in prior the say was would similar I we XXXX. experienced Yes, fourth

million year, the the we constraints. constrained somewhere than so revenue But probably maybe or had a it, million $XXX quarter, better of was $XXX exiting that about call of QX. So because slightly

Jeff Osborne

quick to housekeeping the And majority cost $XX restructuring, Got then of of million, is that $XX The the goods couple there. million it. savings on just the on line? of a

Joan Hooper

XX% is I'd the say so in line. Yes. or of good cost

Jeff Osborne

And And outsourced you then was what do of be it. Got sort production mix? to that the what post these then anticipate actions?

Tom Deitrich

think another XX%, external probably I are it X% quarter-to-quarter internal, takes up today. probably XX% so. running And We around maybe this or

So above amount in the by of finish the XX% outsourced terms meaningfully we time production. it off of

Jeff Osborne

then Got Obviously, on Tom, a my last just great one, book-to-bill. was it. QX. And the

of about that we be it softer above be a the how you're You you the just that bit level QX to anticipate quoting? Or think implied seasonally. one for would year? Do should activity

Tom Deitrich

We X:X pipeline or year the based the remains EV they opportunities strong do above reliability of full rich, from be side as will consumer that needs think resiliency integration. book-to-bill customers well be on and applications, for as terms whether definitely new technology very and very for our

rich we're seasonality provide opportunities a a in it come just as only So set said, the and bring through. bit with contracts is quarter-to-quarter individual of will what I as caution lumpy of bookings. on the of normal timing year would will well That bullish little terms be

Operator

Moore question line And our the Hutton next Group. from coming of EF Chip

Chip Moore

the So their solutions. meet some It advanced I more like and at seems you're customers for the regulatory more wanted are that your ask more to mechanisms goals. something one states Is looking environment. performance-based of on to with seeing

Tom Deitrich

now underneath of capitalization technology changes type the Indeed, is is each one -- the allow some the way. of XX for XX right regulatory nearly of or the models and amount understand environment need those and states along continues new rates the of plenty out performance-based of about to that new

the moving the model regulatory is in enabling direction in. So technologies of investing we've the been that in general,

Chip Moore

us on hear. of and back talked sort color the for you guidance. mix Can half any on cadence perhaps give of Great And margins year? the the in weighting you of for Joan, implications about the cadence to

Joan Hooper

were at to I year, being they look mean, full would full they 'XX. year the for pretty I margins similar what would we say in Yes. what

synergies more level. we to fortunate of certainly, also you get as more get absorption So things out would factory production that supply, even the the create therefore, we're benefit less and but

say, first the the slower XX pretty in grow are levels consistent. and full I through would the start then Those year, for will quarter year. So out

year. gross margin I for say QX similar So to quarter, first to would the be of the last

Chip Moore

new And helpful. programs we more just with on Joan, abreast on the program? restructuring, you can housekeeping, where super That's us remind us the just the prior are to just keep

Joan Hooper

program XXXX basically The complete. Yes. is

initially the we And early when still so XXXX a If complete payback little little we plan. should be than booked those gotten maybe which less next higher just has all program on are had year bit we are expected bit on working mostly our because the first and a track. anything, severance we

plan. is -- be according really those the out And $XX So one 'XX, early by should $XX be are cash will million. million complete to again, the this savings going to

So really no impact on cash 'XX. for

Chip Moore

it. Got

Okay.

charge And there? there one like on was an It sorry, software project. Any impairment a more looked last one.

Joan Hooper

years terms functionality we we Yes. the project really that We and had able in out the were struggle vendor born to a software deliver couple that going project to being cloud-based with software of the was continue for last of expecting.

as So what we made about we in total project basically QX well costs capitalize costs having $X.X income a up ended off a as million. exit of both to that for and to determination external was write

Operator

our from line Kashy with coming Piper Sandler. question And next of Harrison the

Kashy Harrison

So you've up came XXXX to indicated I in slightly XXXX XX% previously 'XX. of which of, think, is XX% sales. target at from XX% OpEx

OpEx 'XX target. level your confidence for how you're And progression then about the just thinking is where and of the so XXXX I'm curious on

Joan Hooper

Yes.

'XX. see did supply that in fall to the 'XX 'XX. kind XXXX we and point, saw expect And that of of targets strength we in in So at did not continue the the in we

out to So think year the while going in I met a of XX% longer-term is backlog. so will said, our XXXX. longer-term target. just still I believe the as are through we work those That would to be OpEx XX% targets the say or don't I those that's pushed targets. It's be target

component. because supply I it delayed been has think of the

not expect to it be long-term So rate XXXX. do targets

Kashy Harrison

flow. just just free as to touch I then And for -- my to just follow-up, cash Helpful. on to ask wanted question a

thinking XXXX? chain think in And supply Solutions then Network flow How during some under in generated the XXXX. you the is you recovery we get you how sort quarter cash to of think just that are flow? -- environment do potential of extent million you free that free What cash do use $XXX about unlock and million I per about $X revenue.

Joan Hooper

Yes.

actually tune million positive of for of 'XX. $XX It So a continuing the a million quarter negative in $X the cash and around in all was fourth that lot the flow to to invest inventory. was was

One we'll for as for and available second paid. due capitalizing yet. tax make the for get have that all haven't the some R&D. XXXX of components were necessary. we've is else My haven't crude XXXX expecting which forced tax is issue change continue to Those laws tax overturned flow the the things. happened large couple payments negative reform they we for free So to test is as the we have from with well cash those become international legislative We tough bigger sure to as but expectation got essentially components and everybody X the in relate is really that One a full audits But reasons. you to cash quarter. settling year to

bit capitalization R&D quite the tax So law cash tax to creates relative the current a of payments. larger

example, up year-over-year. something tax like is So as be to an $XX alone million going cash just

the will continue in to we as grow working business. addition, In we capital invest

of typically growth happens, to our continue grow. we grow So the receivables guidance you've that as we'll I to And when mentioned, kind in make and business. is sure

more it also large positive. the discretionary by full like team. expect half. where be starting X for I quarter first the improve And nonexecutive the QX expect the to year, second expect to the flow we $XX half, cash time are QX the to to turn again, cash to minus be bonus of So the something is payments range year, the in will negative. million get for to versus the the we negative pay I to full million. $XX for is earnings so a keep while in But and rating it's minus

Operator

next the line Baird. And our coming Kallo question of from with Ben

Ben Kallo

the Congrats on bookings.

and quarter all. variety bookings not because new some at Tom, a effect of plans prices projects more for the of environment able follow-ups. electricity been that maybe, then to utilities, of being quickly, this but have smaller just of explains maybe I'll of implement beauty than And all it Just reports they couple and there's co-op

Tom Deitrich

Very good.

environment are your bookings to maybe whether there. you the NAVs utility continues the continued growth and pipeline The things lot for for need environment large growth in investment correctly resiliency it and or the means prepare investment solar opportunities, need of very are stated, or distribution be of like an to awful robust. So in The in grid. small reliability, rooftop

range of again, we projects I've investing backlog what future are of and growth driving applications. that investments a for on really about and from demand decade smaller interface grid that called hear the but of will point in say that have the your be multiyear are you seen put card, municipalities water up continues that range today. our about us to widespread. broaden something is of third-party network the us bring good for like terms very on from intelligence expand. So And range based bookings of see is allows work into feel to utilities in company. bullish electricity terms been and and aggressively cities will it certainly growth investing the broad probably and systems needs of affordability and in opportunities The out energy future the to, The that going On others that's prices. continue devices we I delaying on would a launched certainly big IOUs to DI types of There been distributed very smart customers. and hasn't directly customers. product and panels We investor that aging is

Ben Kallo

if of or got that inflationary pricing? to going backlog portion do environment. able we we margins forward? And that And with customers before how And impacts backlog think just you're a how reprice and was to the about signed

Tom Deitrich

protection a in on than to little That overhang us a that able Sure. that I has year and that a bit The work I where last contracts in better amount little a operations plus are with bit still pricing price over the then on more sometimes additional. for has majority sometimes we've flexibility specifically a to in been more can gone new you in one inflation. that anything around That have bookings of of against prior you've been we new of environment. bookings place year achieve ago. doing to inflationary that and work Joan, provide agreements haven't changing change our well. And got add and a say said, been the would jump fair to perhaps, want to we increase. vast

would through I into So to protected. backlog, deliveries of but a do as new that continue than of projects that and the a terms it's X/X they in But it probably what happen, as where stuff we size terms pitch margin perspective. of off inflation from above that less in half We're is. gets have zipco a us and margin rolls roll better say [ph]

Ben Kallo

And just lastly, outcomes. just us of maybe could the especially of cadence remind you

other saw then up just before the something like how trajectory margin it hit things get but different the more profile. think I implemented of revenue service I tick with and service else

Tom Deitrich

Sure.

side outcomes the helpful. are steps things that So a I few think of on

period of line to a outcomes of that materially time. let's outcomes that come good would months bit revenue majority The meaningful after very of it network call that of of deployment above why margin timing a gross generally, number which to to terms what The changes margin project tends So roughly sort even be. revenue. to or has project timing, is long or revenues, compared time but a the the timing And network run understand which staff a service-based the little XX% revenue in revenue is of devices. that's higher to of over is recurring year the it, tends XX

So SaaS get agreements, time. think revenue I managed XX-year service or a so long period over of very you that

Operator

next line of our Now Price coming with Graham question the from James. Raymond from

Pavel Molchanov

there of in look companies? here. perspective in from private kind you as improvement recessionary asked Molchanov M&A question at is few an months Pavel Same ago of quasi I multiples this a It's any terms environment,

Tom Deitrich

coming say, hardware valuations down large-scale tend the be difference There's valuations higher. seen a tends meaningful little. I rich and to but still a that a valuations still coming valuations between compared think But where would bit software indeed, valuation pretty traditional are are enterprise valuations software down. certainly that software to down a bit. to you've be I coming

Pavel Molchanov

update Can up but I mean appetite also one extreme it's the these slice demand would outcomes response. dynamics which obviously demand response pushes ISOs for business. you imagine of I get an Okay. on get among we weather

Tom Deitrich

shave what peak world response demand off not capability along seen using continues the I've traditional nicely. let's that demand and only And solar pretty more deal effectively. with move very a rooftop normal of Indeed, charge that as from response, how to more the honestly, kind like EVs when pressure things is practice situation, using much much a to a and of high to capability course understand

of heading the So for demand think and a kind management with moving our accomplish response I localized where industry lot we cases. those resource control energy both much tends a it's from to peak a discussions use customers of be of more distributed to situation shaving have of the is

Operator

And our & Johnson line coming Marin question Company. Rice Malloy the from with of next

Martin Malloy

would that guidance. variable And margin I about? talked higher. per that help comp to, the also, I of the would have the you And guiding be wanted anticipated gross revenue magnitude Could give the be ask for in maybe us you that appreciated about would help any on side. earnings of to share terms the some level for profit you're the

Joan Hooper

Yes.

profit I the think I gross already. answered

full above or slightly an level. at from I XXXX So think annual year perspective, the

terms to be the is In that about not to higher you've continue bit of going as scale talked sort at the a revenue of level. I OpEx, think little we're

in imply to would which higher comps. mentioned percentage I and So 'XX lot OpEx also as is similar dollar And 'XX. on of a for XXXX between variable that it's think I think the call, OpEx, the a

about don't it variable really I our enough to much we So comp want was exactly materially that it. but how mentioned talk is

discussion other point. The versus for in the XXXX, point I is we would thing to EPS you XXXX normalized

in 'XX 'XX was tax the tax X%. rate overall The XX%. rate is in So

the to $X.XX in of normalize is the It tax statute position better guidance we've they're our current in roughly X%. the so we on And would than our to 'XX. been year-to-year. supplier of frame. August guidance $X.XX midpoint so view limitations extent discrete had based time mostly in on more the guidance update can And a favorable the XXXX lot of linked have to for predictable, rate expirations a built again, And same the commitments. that, we'll be

Martin Malloy

Okay, of that's down network much that is that of solutions. terms how how record helpful. the maybe what And Then in backlog of can much here, is break you outcomes? --

Joan Hooper

XX% change quarter. doesn't quarter from is over Yes. materially It to outcomes. and I networks much mean,

Operator

the remarks. any Dietrich I will you. to for back call And closing Mr. Thank over turn now Tom

Tom Deitrich

you Very joining forward updating us today. on QX. for all. to look good. Thank progress Thanks, our after all you We

Operator

conference for Ladies today. gentlemen, your you conclude for that our does Thank and participation.

disconnect. may now You

Itron (ITRI) 27 Feb 232022 Q4 Earnings call transcript