ITRI - Earnings call 3 2023

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

Operator

Good day, ladies and gentlemen. Welcome to Itron's Third Quarter 2023 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. Please note that today's conference is being recorded. the President to of hand Paul speaker now Vice Vincent, Investor will conference your over host, I Relations. Please go ahead.

Paul Vincent

Good Quarter the general also and a a issued XXXX Itron's its release third Itron's to business call and includes Chief Itron's update information. details Call. Vice results will Hooper, welcome Executive Deitrich, replay review press Officer, Joan to available presentation through is release company Chief the the President morning, on results. Accompanying Tom today, related and the under webcast and President tab. announcing outlook. website Investor conference and Senior is call webcast quarter Earlier and Financial Earnings and This today's corporate and Relations Conference our Officer; that Third provide a

be Following operator the the remarks, call prepared the for questions using process open described. will

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

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

of turn Now please as our Tom Deitrich, presentation his to Page our remarks. X begins CEO,

Thomas Deitrich

demand gas was improved and edge XXXX. Good an quarter, improved million, highlights aligned to share Paul. environment revenue. the execution of increased us QX increase include: efficiency flow $X.XX, XXXX. operations cash third Operational year-over-year grid of needs QX was asset supply with year-over-year. the accelerate services Itron's revenue safety, energy digitalization, level joining. critical and XX% coupled utilization, come. electrification, and strategic for an EBITDA third X% the per a XX% was of are to by since from closely $XXX the to that organization. in $X.XX supported Non-GAAP give confidence accelerating compared transition, during and to for for $XX increase with consumer you, year-over-year trends years sequentially Adjusted team morning, highest Thank million, the improving our The by of $XX earnings activity impressive Thank broader everyone. improvement and performance you water to many million, global continued our of quarter an XXX% million $XX Free customer positioning investments

which had to expected improved more has year, into that have fulfillment than chain pull into the execution of coming us XXXX was XXXX. constrained supply has the anticipated team's allowed to Portions of Our supply some enabled activity previously in the quickly revenue. occur we

and towards $X.X of quarter our approval. capital volatility improve continue Outcomes rate. are a of during backlog Slide grid noting billion assured steady visibility is least we continue bookings. resiliency, Bookings within nature related to expectations, on These the customers and with uncertainty. our turns consisting to at are deployments for Network awards total and The to return Projects were ending nondiscretionary service term and been have tend long million annual line in their experience $X of contracts, to agility years Turning visibility, assurance billion and most who and assets. several critical are and segments. deploying to third backlog projects and is Solutions $XXX durable our revenue backlog with are projects activity funding projects of that worth represents date regulatory nature with comprised in be signed It to of the periods we infrastructure, bookings to XXXX relationships, of our and in as modernization in progress X. and economic

supports and operating this data the Asia for Our Itron funnel under utility of the that decarbonization by to future distribution increasingly reach grid constructive to incentives network infrastructure to accelerate the topic Pacific stability expand This Singapore on In across operational an supported that utilities and support in Exelon efficiencies our companies the more value and and areas transition, Power trends grid opportunity the expand and on resulting Itron's Exelon's reliability, for of technology increased globally their of enables opportunity commercial and effort companies. operations The macro applications. this awards Act new the growing excellent extend Exelon's clear intelligence. on bookings focus modernization to policies confronting due is for we award signed few underscores valuable continuing energy or with continue the to to note. grant grades during There grid to into are in a innovation targets. available throughout related its of resiliency, grid which field utilize and analytics Jobs Investment focus agreement utilization to that customers recently outcomes edge grow is challenges quarter and and Itron distribution to expansion return an to announced has sustainability the awarded regulatory Infrastructure further smart Exelon IIJA, are infrastructure, highlights of Itron. September, in include grid agreement with Itron's the investment business areas unlock with regions, operating area ongoing expansion the solution, of optimizer

to recently we efficient sizable periods. switches, IntelliPEAK users demand effectively support response critical operations. project customers' during began more enable project and provide and load more will Additionally, end which control This benefit manage a load grid our our

turning quarter to expansion. Now cover the and QX Slide X, margin consecutive the revenue around will business. operational XXXX fourth growth insights from I some is of

not a record to Solutions margin improving to levels trend. have a very return chain performance Network across conditions pre-pandemic a for meaningfully asset expansion talent component improved and maximize segment utilization deliberate manufacturing revenue in chain the level, we We manufacturing and new expect Supply measures leverage device product portfolio have in initiatives accelerates. times resulted operating solutions. and At introductions, taken activity new and These supply demand quarterly although as improved, optimization, organizations our the production have gross and record do contributed lead to near accelerated. for term, output have our the

proactive continue our will needed adjusting increased and strategies to We chain management chain as our managing supply to be volatility. inventory in the global supply address

the backlog upgraded continues is as to that edge solutions awareness needs. past digitalization of longer replaced. no consists be future or grid Our of growing meet related Customer to aging the infrastructure increasingly projects

a at and edge grid runway of solutions see provider leading the we scale, intelligence long very of As ahead. opportunity

emissions. on thoughtfully reduce impact we and when continue planet, people to our our we Lastly, consider

more than up of alone, own ratio This generated. avoid During from helped XXXX. customers Itron's to XXXX This will XXXx offerings carbon Itron's and solutions operations expand. continue XXXx the our rates as our breadth in is grow adoption

the a year. financial to outlook Joan provide I quarter update ask Now will our and the remainder third the of for for

Joan Hooper

Tom. of our third for consolidated Please Thank GAAP results. quarter. I'll latest for quarter results you, summary cover turn first and the then the outlook a fourth Slide X to provide

income realized to was by of $X.XX share for $XX margin XXXX. compares diluted increased The ramped. due higher XX% to was XXX million quarter and our by offset product of strong and better-than-expected income, level was resulting higher supply year operating QX and our of in points or $XXX the of year execution, than chain revenue increased quarter efficiencies conditions million million customers. Third the margin Gross favorable due since to higher operational XX.X%, partially volumes diluted per last per $X.XX expansion GAAP ahead prior taxes. very operational as highest year-over-year, or driven the net better basis and to in expectations mix $X share shipments

Solutions currency year-over-year $XXX $XX increase primarily last and non-GAAP was growth water basis, due sales. Non-GAAP revenue $XX or the constant million or million, to Non-GAAP from or Network since by XX% metrics year-over-year EBITDA quarter a business a income in revenue year. to Slide improvement due the X. a million, revenue was or Solutions $X.XX over increasing $XXX recurring ago. segment Device on primarily million Slide million are XX% increased revenue in The per share million million constant quarterly record XXXX. highest for a operating also $XXX up on $XX to $X comparisons was million Regarding X. in which $XX growth increase on of income continued Year-over-year higher shipments. supply chain $XX of $X.XX due net was $XX versus EBITDA year conditions, enabled Adjusted million services. diluted of currency, was QX Outcomes the $XX XX% an million meter up was year. million, of prior

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

count Pretax operating operating per diluted from gross performance share. expense $X.XX had per share impact a per positive share, share and impact non-GAAP offset year. QX year-over-year $X.XX share Our $X.XX of had had Higher and fall-through of was profit, to prior per up by higher due impact FX the a negative partially $X.XX EPS of higher the tax negative expenses. a $X.XX

Solutions and XX points, million prior a review operating basis value of XXX margin reflecting revenue margin Gross of $XXX results points and year-over-year, operating margin product through and XX. margin will year. was was operational Device segment basis mix higher up efficiencies. compared XXX XX.X% up with to Slides QX the XX%. gross was I with Turning

XXX decreased is decreased activity of on mix basis increased Outcomes map. as portfolio Network Solutions to of lumpier, revenue operating expenses. license revenue margin increased was points basis and XX.X% basis software license profit Operating We periods. to margin partially very favorable generally XXX are to of product Gross Gross points XXX was very the lower which gross XX.X%. $XX gross with higher due gross higher and Operating was margin comparisons their $XXX software improved lower margin improvement leverage. road onetime and operational increased they recurring XXXX pleased points devices as in product XX.X% and and can XX.X%. impact margin margin execute profitability between services. of year-over-year XXX basis margin offset points million margin million, high typically was throughout with by efficiencies. due due fall-through gross revenue the

by an revolver $XX further credit QX, to credit undrawn Slide at equivalents X.Xx objectives. cover end agreement higher debt This on support to working growth million flexibility of the debt remained debt quarter. in Cash growth. QX. the $XXX that was the amended million in and was through is and quarter facility offset $XXX third cash million up I'll $XX million. $XXX opportunities it at strategic XX. at partially were million liquidity provides at end we Turning leverage Total execute related capital net currently our and flat to end million. year-over-year of increase the Free driven the to by of third flow extend $XXX Recently, XXXX. the profitability, business our to was and Net

turn please be between XX fourth XX% quarter year-over-year growth. for midpoint $XXX million. represents revenue range to of quarter outlook. updated The to Slide anticipate $XXX Now million We this fourth our to

negative rate to At The per we non-GAAP $X.XX last of rate For growth $X.XX muted in is XX% of X% be minus QX the this year. QX in share. up the tax X% to EPS, to last a due year. expect versus is diluted range QX of midpoint, of year-over-year of effective

component of improvement midpoint annual revenue be expectations represents XX very please in This a XX% Initially, a February. initial out revenue range to Obviously, our QX higher year now full to provided and are At represents we to we of are $X.XX range $XXX our per between The that an more very able at by shipments summary, driven the execution $X.XX strong than customers XXXX outlook. year are $X.XX diluted which of versus in are million guidance backlog. higher have customers, share Now from revenue and the increase on earnings midpoint, XXXX in ahead deliver had guidance and took enabled most recovery margins resulting the recovery expected. with earlier to of faster-than-expected XXXX. February. advantage component to $X.XX In positive guidance increase and of turn this initial higher billion, our Slide in Incorporating to to impact availability, update pleased expected pleased share. EPS guidance, expectations. non-GAAP we is We full our revenue a for the billion issued now a updated our XXXX. in the to this annual in shipments gross was more significantly of realized we which supply faster-than-expected $X.XX per an of operational us a ship delivered this revenue

focused to expanding evident is which initiatives margins In profitability, on cash addition, flow. in improve remain increased our we and

balance with sheet a positioned well support are flexible We objectives. to strategic our

back call to turn Tom. I'll Now the

Thomas Deitrich

you, Joan. Thank

and change related success and aligns in distributed with how consumed accelerating, results objectives. with efforts the quarter metric critical convergence coordinating a third is are needs deeply is strategy invested of our reflect produced, our execution. of customers. evolving Itron, is of our Our preparation and magnitude Customer for being to business energy customers' our and we The the

Our minds This the in ecosystem unique annual our and customer industry held event from insights to partners San commitment diverse and showcases plan water the of developers Antonio, event industries. future in industry energy Itron the attended the to together including by recently and technology together. executives, bring experts, best share channel Inspire

water of During providing the serve. municipalities wide energy they event, and continually this utilities, to are reminded secure the in of cities and affordable we communities range and reliable, confront challenges,

obligation who tremendous innovate, work their in collectively problems that increasingly complex to to to into solve all they missions our an grateful and help goes creating our We to Inspire, and amount continue future A Itron learn arise reminded I'm prepared participated. of also be for customers are of environment as fulfill and have is like dynamic. a

joining important, all please and this Operator, line actions you event for future. on the open work take can focus us us sustainable in Thank helps of Your for more is pursuit truly we a questions. some today.

Operator

you. Thank

the Cowen. TD Our coming with Osborne from first question Jeffrey line of

Jeffrey Osborne

backlog become we on just a components pulling Tom, since lapsing and you're would if just semiconductors? 'XX about where of would lot a How the the margin of backlog we a the do about the XX inflation XXXX itself I protected point the in P&L, have you more you there's more was of will as of some through that the question essence, cost think could some forward time that walk some start for available. higher imagine into meaningful and flowing do curious think through, backlog. in wasn't I inflation have a protected How expansion.

Thomas Deitrich

frame. The portion maybe months right Sure. through billion $X.X around call pre-inflation next, the roll The it, should a Jeff. Thanks, touch XX repriced the run call meaning backlog now right that up, in the or time is, of backlog it, XX%, been indexed. of has total the priced unrepriced majority above of

sense bookings, of improve things are a into roll it that we some rolling split is they that backlog margins backlog. new that we're pre-pandemic repriced, stand. now, gives something The the we and So meaning as you of will that indeed of where through

Jeffrey Osborne

other to And that get more lower that as maybe rolled and Are the one starting need? a to the you maybe were just you or Are industries bit. challenging in topic. areas semiconductors seeing side past you industrial some follow-up on see in have analog on cost over auto either that

Thomas Deitrich

much say general, has Sure. supply that I would in been better.

are improving. with Lead still start of pretty your on supply the hands let's basics putting components, long. So the times

a you flat the themselves seen cost profile, would overall. retraction I get to times meaningful pretty in haven't we relative So say lead the costs,

haven't yet of the longer, meaningful semiconductor we on but is seen level whether just cost any any retraction We aren't components, mechanical seeing or that increases related.

Jeffrey Osborne

you've new there in that, regulatory is would then a it's And quoting categorize quickly, it. flip chasing. wanted projects year, you billion on RFP and that you and maybe for Got you're not the if in then the the touch $X I then backlog, bookings, goal just would how could very activity? And think are awaiting you quoting of that activity that said the approval the necessarily

If helpful. on you through you $X billion achieved mechanics had goal the the walk be could how of just would

Thomas Deitrich

Sure.

had amount very and weighted, of the that's year. is beginning of half year-to-date since line back out. that thought we've with the the bookings in be So bookings playing expectations indeed what's We would

In terms line or more of we have making the billion the to that. $X for good year, sight of very

You have diagnosed. correctly

steps, as view land more. our the should in and contracts are us that through awards signed final the good a were getting going working which perhaps year to have regulatory We that through or approval, where meaning gives items

levels, feeling very quoting robust. very them I to So as good. would characterize Relative

We focused resiliency on awful lot an as going reliability. improving with and of on customers have activities they are

to So are like energy or Europe. ability customers they all as reliable, rates to rooftop things be good and strong, resources and in North a ongoing continue and of turn energy Europe, to and Pacific stable laid managed distributed continue we've that batteries or handle grow to the deal primarily our investment EVs distributed to resilient, grid. area those volume, investments. make whether strong rates increasing are resources there management vegetation management water outage need these with Asia very the business in seen and solar, scenario out infrastructure as specifically, But ensure water be that And America is to reacting of would in in continues things I've

pleased relative a activity through and gives regional flavor the back strong we with overall. as So visibility to very XXXX. the bit bookings is the head quoting of year you But that a positioning, little into of the

Jeffrey Osborne

Thank have. I you. all That's hear. to great That's

Thomas Deitrich

Jeff. Thanks,

Operator

the Rice Company. Martin Our & with next Johnson question of coming Malloy line from

Martin Malloy

Solutions revenues picked question up Outcomes maybe revenue about Can bit. the is the that segment you we talk shipments solutions the this us Network when quite Year-to-date, should timing it's and your on occurring? outcome shipments have Congratulations to of pickup a an the for look through My network been the in there. strong the occurred that increase in related segment endpoints this quarter. year

Joan Hooper

it Yes, think about I'll a general, frame. In to we of XX- in take that. time kind XX-month a

So to indicated to period. on to as great that networks sort the ramp, we really news, in outcomes would has XX- it's lag expect and you XX-month started of follow

fact I from the caution, our The given the other line, to can about there but top that get and SaaS-based. have onetime lumpiness in you sometimes past business some we we've very just outcomes that about would grow talked quarter-to-quarter in the more are optimistic is come be license thing again, revenue, continue ability be to it it

Martin Malloy

also Okay. look the would annual remind we basis, the my considered revenue us And and maybe then on over of outcomes it outcome be question you the segment. the what reoccurring is follow-up If an could percentage non-licensing.

Thomas Deitrich

total Sure. of about business outcomes piece. amount outcomes in The the XX% the revenue recurring of is

by quarterly Okay. It a up move percentage basis. can a and on down points few

things provide of more out, some well continues As business things it form let's say, number Joan get to to you're we that as take that over nature. there, margin X, where creep in the for services, run as average someone or upward. would would pointed as you'll and ongoing have accretive, closer It XX last, will which recurring that down. probably scale you activities XX%. network they maintenance recurring sometimes the the right SaaS-based at but think if of services you gets revenue generally that But lumpy are percentage in onetime We X quarters,

so. So year probably or XX on I next the over the think XX to XX today

Martin Malloy

Great. Appreciate the response.

Thomas Deitrich

Martin. Thanks,

Operator

Pavel with from next the Molchanov coming of Raymond Our James. line question

Graham Price

first I This for on Pavel. me. for is Price Graham guess one

on the that talk question, on water previous into You could if And but bit touched a called in segment. XXXX. that just rolls in for think how out it little little strength further I Devices a a was I bit wondering strength you you and

Thomas Deitrich

Sure.

given part it we So Europe continues or seen communications printed. water Americas, Europe. has we year. we've year which the that of is quarter the really it less efficiency, of strength. so we came into move have metering, on we Water primarily in more we to reducing footprint, to in automating portfolio, than just through we'll been It we stronger solution. the that continue services, is expected, pace at the the the leaks what's strength along In into But the our networks was that into watch as next stronger driving had quarter really specifically this results water as and investment we've continued Certainly, in and Europe, is for the seen third we improving monitor certainly fourth that than go year. anticipated. most the automating expected and just And in

it's with contributed I segment year. XX little think to very in premature the Water the a like, That the but business present devices dramatically margin what has forecast pleased through the improving of much is that of look to exactly gross levels devices performance really some would in this year-over-year.

Graham Price

mentioned dealt for And of kind the you've at my screw follow-up, times, longer pretty Golden this it. Got concept over era is much bottlenecks the that lead of that the point? past, with you've but is in

Thomas Deitrich

Certainly, are of I XX% in level we mismatched right are golden to components that will, some inventory and our have say in things but plus direction. moving you those continue been still if would the screws, sets recovered, of see today, about there

it has helped revenue. certainly, the chain, has supply think I normalized that and so And

those would be year, of some nice the into able of team Golden to turn and getting taking being of has delivery of thought and deliver coming those and We're we screws So operation advantage done the really into that we 'XX. pull our customers. things chain a forward installed the in with goods able them only supply to teams, finished in job components

of part team. So it a on the rolling through, all successful has effort been the the very way

Graham Price

Great I'll along. it pass Understood. hear. to

Thomas Deitrich

Graham. you, Thank

Operator

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

Ben Kallo

just outcomes. talk about, talking well deals, Tom, both networking as is you side as congrats the quarter. I to environment guys Hey for the guess, North on on maybe to new can us America

to you utility up. a out at talk with as have I pushing the about a how new we get Just going wondering customers balance level? utility rates follow-up. Then about higher rates just of PTC infrastructure I'm lot

Thomas Deitrich

Very good.

So there couple to question. are layers your a of

strong quoting some assets. for weeks, reducing that managing the foremost, I safety earlier, and whether improving in resource remains reliability, you're doing a energy overall and outlined underlying of about just distributed resiliency, first the better robust or causes management operation, So efficiency talking activity job of the

are some approvals types good have of our those going utilities cases improve we they lot We the that with process, fuels to at earlier, expectations needs which, and would field acute again, rate as are bookings QX. of visibility. see the There absolutely for today. continuing into replace customers the we into today, and of the very activity of along pace All hinted that the that and do and I gives a expect. case have us rolled quoting out we haven't finish at into the assets are awards, as rate backlog It moving in is yet

$X Those were in in in range last, that billion awarded. billion. of We was government just revenue American approved in just about also and announced funding in $X starting those of the money energy at the beyond. probably space. the shows be $X least approximately maybe awardees and weeks projects for start IIJA us North of to to X XXXX see There billion electricity let's say, terms were or the up some towards That

big are at look from away bit a good this balance overall. near-term good as implement still we're the P&L means of kind service a the brand or a rate some rolling for through only our which this upgrade and in the that in a in to And and policies, expensive is ahead. which provide the of don't but of in investment is that tailwind than less transmission the necessarily see regulatory is still expensive perhaps that bit business a and making projects, reliable or in doing our So faster upgrade it to our Oftentimes, the good it's little need the grid environment and I resilient less pace making. than to distribution and gives years portion some generation the but investments big things decisions of of nonwires easier helpful iron, approach of the us customers terms cases,

Ben Kallo

of then Can how outcomes we you of about that. on move P&L, for a forward tail changes kind outcomes? to just networking. also as the follow-up Just your the in some in mix backlog. not in mix us think And from of And backlog help then out just devices your years,

how Just give this evolves going forward. us sense a to all of

Thomas Deitrich

to. Sure. Happy

So the billion there, roll X through where of $X.X to based P&L. years that's will is that's total backlog, and today. that backlog the approximately the networks X about That is outcomes majority XX% the

devices forward, In businesses about mix $XXX would going stays do terms think or But I the and of grow. that per business to quarter. will at expect that I that plus million minus networks continue the outcomes

that of the So our you sense terms you years in the give mix of will some what of business. should expect over next couple of

Ben Kallo

guys. again, Congrats

Thomas Deitrich

Thank you.

Operator

Research from coming Seaport Scott Graham with line the question Partners. Our of next

Scott Graham

about sort I months. is suggest was this and in a look, you from real margins that half repriced a half than second gross XX% out to over math. is sales. about XX% than the could it margins and on I the been Tom, be the of of Does the next kind repriced more your Congratulations gets little XX-month XX? and this that That print. of pretty And nice half is comment, wondering first there in backlog know gross meaningfully XX not fuzzy and will roll has higher last

Thomas Deitrich

set guidance when want Yes. be into thoughtful I that much get year. we'll We XXXX that to we and next read early I Scott. would know it, into don't

majority think overall. you've number. utilization So next in our we got as when the pre-pandemic what is approximately mix There's in things other a up backlog. and could call, with price. the XX certainly happen roll will that I through that inflation February months well set and that can XXXX But is do move as there we beyond would really where down factors of

up through So the the pleased too it. about is we best backlog, that think I be get XXXX, next way of amount backlog yet forward think some on allowed don't through want of able XX pre-inflation the and of us to of the the that chew probably we priced months. over we'll to what to with we rolling pace the But far remaining move have to pull are of ourselves ahead some just majority

Scott Graham

Okay.

bit or equally the the The I quoting and a is that saying more also little other question But of certainly decline but days your with maybe understand and supply activity that. in compression the robust. all is bookings speculative, you're chain maybe

a that in is chain. lower Is X-quarter just you're kind this essentially event the this? adjust the in bookings decline on of days thinking wondering, So I'm what to to

Thomas Deitrich

I X our deferred Certainly, with the are bit had. elevated backlog there's of because each other. they we Well, that a was think and revenue components, involved

some little in backlog of this of didn't commented than number times. deferred supply held that just half burned It through more back component fulfill. of was So as lose at was We it. we've a bit we a point, on took a maybe little the that And stuff revenue. still to

the that we'll So and the still some of backlog. fulfill as it through components backlog, move and get we is in

come to And when deployments. a lumpy terms that The that projects it actual second ebb bookings, in flow. new is as of little piece it and tend comes the bit of large heaps network can to piece in big bookings is always

it new be just we're up about kind bounces rolling I as think thinking QX, X-quarter X-quarter you about the X:X a rolling for easier levels. And think of that about those touch start to a talking of amount to above the that it's maybe number from if average bookings.

to constituent So keep separate. there there's I X components are think important that

up and We quoting are backlog months with we the very the our discussions have customers, activity show that in with ahead. and pleased in will the

Operator

Stephens Karl Our from with of Colson the Inc. coming line question next

Karl Colson

a guys talk And into Just to help you chains. on you expectations? for assumptions XQ question us some much How revenue are the maybe all quick improvement supply can baking by through margins? of situate and segment

Joan Hooper

Yes.

Let of color. me bit give little a

in in So segments. a expect would year-over-year perspective, X from revenue all we growth QX

comfortable we're with that. So

to terms similar In would what I supply we've QX. specific chain of say, in assumptions, seen

But from trouble of big great no the So improvement we're area. out that. certainly,

issues QX. So expecting significant in we're any not

had, we bit a again, margins, expect In strong lower kind QX. record device terms I a of all In and margins, than QX. margins mix. for function of very network to QX, of be Currently, little them would

down for expectations sequentially, still those but will little be bit our year-over-year. QX So come is a up

Karl Colson

Can to on refresh then term of since XX, we And what on you double-digit margins. either. of us you've maybe it kind like terms initiatives thinking trying I'm XX. guide I'm and seems COVID executed in as But you're to to kind guys highlight do we're some that margins not the EBITDA improve productivity. of helpful. not of longer approach trying approaching Super to

Joan Hooper

if But which we to of goals. near-term start. Again, back to margin, about can EBITDA to you at about I think about I XX%. XX% is years our too Investor Yes, ago, back midterm near right X talking look XX% way still last talked getting premature the Day be margins the kind

year the exactly know there. we'll don't I So get

years we of ago is planning We is an of talked about much to on right a targets. only those. are currently in X still changed probably where But would thing the position overall probably size updated at the device be update end the smaller. materially The are targets Day that's for the business say 'XX percentage I the Investor we'll QX,

gross kind So XX% to to we XX% for business. sold that We've EBITDA you've that the terms continued of a the of that And this a for. margin in the we're overall, of quarter. gross said, we I record still shooting is had target devices seen that target portfolio. margin. piece Like prune But

Thomas Deitrich

forward. we for the just networks. Devices said takes goes an is add factory what consolidation Maybe that do here a but a which more is In until also underway, of where XXXX, from business, devices part important end comments probably I'll Joan of to couple happens the what have

months to some through in there pricing consolidation of the pre-pandemic factory roll scale. well as the and as next is XX have It of a that outcomes. game We in really

move in towards longer-term improve ride We our have the just and to things on those place. margins the we We've and top there target have up. Joan minds that line But the are we actions will as outlined. key the got infrastructure that

Operator

no the in Tom over time. any Mr. now queue call And Deitrich to the for further turn I at will see closing I questions back this remarks.

queued now up. have We

Okay. Would him? to like me you take

Joan Hooper

got if yes. questions, you Yes, any

Operator

up line queued of just coming one Noah Apologies Kaye. the from

Noah Kaye

in putting appreciate demand in. our But we'd us about are. earlier. wanted I underlying hand we thought to here ask just EMEA. raise I I you

quality devices. in see as of obviously, seeing like of to demand this projects to I sense you think at the you here. the about good Devices of setup which business. get segment want But EMEA to just But you're chain broadly But better you've for did a serving just margin balance understand improvement environment in a a job and sounds in prioritized it. talking want It networks. are being Because much improve supply about more and on? selective just growth demand you're you underlying bidding and point

Thomas Deitrich

Sure.

had of we've for and are in So an We've to about I we selective our which baked specifically now. good and there's We've year-to-date around to what response watch is than guidance about in in for in a EMEA, QX, been to an what we beyond about we think now is what bidding EMEA But thought earlier flat talked would as through the perhaps where will year. into as question, we it we stable Certainly, water kind certainly coming what stable right lots EMEA, set we market, the been that are turns little into guidance seen traction seen on. is and macroeconomic expect to stronger and for that's 'XX QX. overall. and XXXX situation

Noah Kaye

Day outcomes. already could a you this good of of want flavor of outcomes, you then, terms Tom, we'd going the don't quarter But thunder bit And drive real in wondering you're interest sort Okay. is on get outcomes of and additional to I the point? preview from where in spend some really steal just us to will but on from what a Investor if this awards XQ, to at applications. you're growth customers love any some getting the where gave little more just have

Thomas Deitrich

Sure.

would deal outcome an every networks every not to say we that with component of it. but XX% in comes we well, book along that I deal, XX%, deals book, the So

So the those by be X talked What They We then doing something are visibility visibility Joan time happening businesses the out earlier of are linked, maybe although assets. need infrastructure to see intelligent in and X.X to upgrading better do improved at terms really edge of about grid. doing? is X people P&L, years. to that control are really they the year, as for what with the offset, understand of tend all

beyond. it when energy capable So management, ahead packages for for space are things which the like revenue assurance distributed the visibility those really intelligence, the more deployed analytics the we a nice year. have to increases, of that drive DI confidence more are derms for million than into visibility, improving to certainly we DI get for We'll endpoints gives aligned and up starts app the outage open macro that will the trends the today, and efficiency and greenfield very resource distributed of do over safety continue. and units X needs and well trends things outcomes Those customer revenue Day us specific Investor next very year applications aspects

Noah Kaye

those don't going endpoints applications. or of it's in using start I points helpful. if Yes. possible rates per helpful. points terms appreciate endpoint some to Not continue take data deployed the are for in forward. data endpoints if or provide Wondering available field point providing And of That's is but DI you those of, you can DI if us would some that today, certainly have percentage revenue the the on sure data those that multiple you endpoints very on I

Thomas Deitrich

with of We sort to would Right. with those stay views It's Good But say coming be on quarters question, try very in Noah, and we'll want and about data. we're much meaningful those that thoughts. thinking very aligned to tuned. to forward I market how develop the ahead. we agreed

Noah Kaye

Okay.

you. to forward Looking that. Thank

Thomas Deitrich

Excellent.

Operator

closing over turn remarks. I to you, back will call the now any sir, for

Thomas Deitrich

you, all Thank good. Thank for you joining. Olivia. Very

for a again months. day. forward looking to more are a And good now, in We have few reporting

Operator

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

now may You disconnect.

Itron (ITRI) 2 Nov 232023 Q3 Earnings call transcript