ITRI - Earnings call transcript Q2 2024

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Operator

Good day. Thank you for standing by. Welcome to Itron's Second Quarter 2024 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, Paul Vincent, Vice President of Investor Relations. Please go ahead.

Paul Vincent

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

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

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

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

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

Thomas Deitrich

team. Revenue operational and revenue Paul. Solutions of consecutive the leverage for market by of quarter growth quarter call. year record free quarter a seventh results share second free quarter over revenue and profitability on the and are growth, for against highlights include non-GAAP execution thank stable strong demand. Financial adjusted and to in backdrop million, of joining you, XX% you discipline with million. Thank second reflect X Networked $XX our morning shown everyone, Outcomes continued per $XXX improvements supported last Good $X.XX, the earnings the our of cash by second of Itron's of marks and EBITDA segments. Operating in of million, cash flow of $XX flow Slide quarterly

Slide to Turning X.

was backlog end at for second the million. second of were quarter Our the $X.X quarter billion. Bookings $XXX

regulatory our second processes support below in timing year larger the pending quarter discipline. The book-to-bill to we than through target currently billion the of a working than the pace, are continues bookings and ratio on expectation will the governmental strong, the or later annual of skewed book-to-bill second our driven processes. The consumer to of likely megatrends. new with environmental year funding infrastructure, pipeline of appropriate bookings have of full processes X:X assuming and better customer our at in half progressing awards for be Although by more are that opportunities of these to typical. is our X:X, be an These measured progress $X bookings resulting

to more for in Itron's to management existing Examples address decision-making to real-time Technology. their operations be with critical strategy optimize needs. In committed that customer disconnects for committed their their adoption to cases. resources Intelligence key management XXX,XXX by through that the Public latest infrastructure planning numerous quarter. Rochester of ongoing conversion distribution, it through Energy increasing needs. is and solution enhanced expansion we comes use moves the vehicles, service and which technology quarter, upgrade and metering FirstEnergy's the support energy Itron to Our management, to future and and use data Intelis deployment grid technology. from endpoints backlog a towards advanced Grid above global deployment during remote Edge edge safety Itron to platform working gas asset of compute Intelligence are and these adding deployment a forward-thinking will additions of in of tools, generation drive-by when This and anomaly communication and in continued of consumer system FirstEnergy addresses automated customers our alerts, to grid high-value grid scalable technology endpoints of Edge face personalized adoption support approach to access Ohio, Utilities and renewable notable challenges with power increased active during our of challenges Also Minnesota agile enhance network an will continues second Grid highlighted adds ultrasonic cases. advanced territory, the of the edge than Spire installed grid driving deployment electric energy provides to the including XXX,XXX complexity more the for in solution all

provide year update guidance. second our Now of on our Joan full will details quarter an and

Joan Hooper

Thank Slide turn to consolidated Please results. X Tom. for of you, summary a GAAP

interest the offset or diluted GAAP expense. efficiencies. per $X.XX tax were to per levels share income of execution improvement million million points the higher XXX compares remaining of margin higher revenue the $XXX reflects supply-constrained or in which quarter year of was $X.XX XX% million diluted operating $XX favorable basis driven $XX mix by due Gross year-over-year operational year. last conversion Second of than by increased net previously The and and share partially operational to million revenue. prior was product and $XX higher XX.X% and solid income, of of

water operating was $XX EBITDA improvement income Regarding ago. reflects in diluted $XX non-GAAP by revenue revenue million quarter versus share income flow growth. Year-over-year cash by in growth X, increased share year segment revenue Slide diluted a QX increased for grew constrained X. XX% $X.XX of year-over-year. net business and versus Slide a non-GAAP per to higher year-over-year, revenue million increased increased driven Outcomes million by on XX% due or metrics project deployments. Adjusted primarily currency Device is the EMEA revenue previously on Solutions year-over-year ago. million year driven $XX and The the year-over-year, Free Networked revenue. growth $X.XX was Solutions sales. primarily increased of basis, $XX catch-up million a X% XX%. smart per Non-GAAP on constant earnings XX% services recurring of $XX

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

revenue higher performance EPS improvement of year-over-year to per $X.XX gross per share $X.XX Pretax diluted Our $X.XX $X.XX profit, driven and Higher $X.XX a expense and expenses. foreign share. year-over-year tax a had QX share non-GAAP year-over-year impact share. of impact increased the offset fall-through operating operating and by higher contributed of negative share per diluted per had by partially currency count negative per share,

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

mix lower up record Networked for million, Outcomes margin to revenue Gross revenue XXX points margin for record favorable XX.X% margin of margin Gross margin due XXX margin margin points product the a year-over-year, operational services quarterly basis $XX a XXX and revenue year-over-year, XX.X%. decreased and mix operating due and segment XXX increased with segment. basis to points was the level and basis of a operating was points efficiencies. quarter was This gross down basis increased costs. and was operating

Slide million maturing XXXX. M&A. net XX, debt includes particularly to was Total end [ the our in was at billion, $XXX [ notes and and transaction This ] to ] was that the I'll debt flexibility, recent second our the coupon strategic improved $XXX and million. Turning X.XXX% issued quarter. recently $X.XXX it liquidity existing million convertible coupon maturing and review liquidity convertible X% well-executed as notes in debt of This relates XXXX a financing significantly $XXX

of X.Xx and net were million. leverage equivalents and was As XX, June cash $XXX

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

expect midpoint, this we the of share. $X.XX an last of EPS, year. implies a non-GAAP range diluted For per per At diluted per diluted share $X.XX $X.XX QX increase of to versus share

from our year revenue Now please we our increase versus in XXXX $X.XXX billion $X.XXX within XX% the this turn We February. a $X.XXX X% anticipate billion the of to to an an midpoint, and XX full to outlook. XXXX annual versus provided be range billion At prior range update for now XXXX of XXXX billion to Slide guidance. represents to $X.XXX annual

of revenue is expectations. demand driving operational revenue. be impacted and strong the customer Earnings also higher will fall-through higher positively Continued execution the by

QX and given mix jurisdictional a Our non-GAAP versus interest versus of per financing EPS effective impact tax in midpoint, and February approximately per is mid-June versus The per is buyback. We and updated both assumes the non-GAAP accretive This range to $X.XX $X.XX the The share. in share diluted $X.XX reflected XX% the to could outlook settlements. we guidance estimate tax timing per year rate. At estimate on will be XXXX share is share based the full EPS diluted updated up year net and share the share approximately share. to the prior EPS, fluctuate tax is XXXX year impact guidance. transaction income the guidance $X.XX rate completed full the revised of recent per our $X.XX benefit $X.XX is full XX% the actual per guidance. XX% The

our has the operating operations the operating availability past environment environment Our a year the we're over realized significant meaningfully X this leverage more quarters. as time supply over levels normal past versus utilization financial frame, recovered performance accelerated and now improved. Having of entering catch-up and

latter Lastly, now projects later XXXX expected to anticipated. the will bookings as skew the noted, are as revenue more part than likely to this of year, XXXX previously will which start impact Tom

the turn I'll to Tom. Now call back

Thomas Deitrich

customers. maintain footprint access the to great modernization and progress achieve duration forefront identifying to an create happening recently the utilities customers clear is commitment Joan. are we at The events. our savings areas progress providing public. and also power. magnitude frequency, what and challenge continue company's and in with Itron's and resource the energy XXXX environmental to energy to and dynamic to water Report, Unfortunately, visibility during greenhouse covers customer commitment start stakeholders, avoid Extreme to advancing X.X and of helping and hurricane you, include by increasing Sustainability continues customers, grid the of strong use gas accurate tons extends programs for these cities provide Thank improve more to At sustainability Beryl recently reduce edge these support and a from the to and distribution consumer our was to Beryl cope Itron's such and across supporting solutions increase fashion resourceful while report while asset their stewards. of of utilities the Itron, Hurricane Houston, shares day-to-day management disruptions customers and management million their operations to early its into the left technology The solving uncommonly impacts need weather and and Texas. without problem of while metric rates. details be Grid Corporate the at critical published response an events and world grid our customers through to increasingly the own high-impact be the our to to intensity. our initiatives. Key millions our provides energy in outages responsible platform types of with efforts Itron's us, on should in climate most of helping time expected support engagement events our which hardening timely of and of sustainability assets for ranging their water approaches to the working can of like goals, as Intelligence least control is all challenges location effective occur. Digitization technology-enabled capabilities software-driven enhancing Edge to demand the to Visibility our at season. emissions Itron's most

Itron's XXXx in XXXX XX% During years rates during were customers by owned of produced lowest focus time for I results. In loss ahead gas we management, than emissions work closing, our of encouraging. our Itron's in alone. avoid but We goal working more behalf our greenhouse resulted maintaining second team emissions the time our environment our a line. enabled our full target these on Last history. On a quarter a that for our results demanding reduction achieved team XXXX, X emissions of in to safe am our to least, not certainly recordable and XXXX, the initial owned grateful

We have much to work achieve our contribute goals. to unfinished more an

future We to Operator, today. are for call engage. Thank our eager the excited for you line joining some questions. and the please for again open

Operator

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

Noah Kaye

I actually the growth with segments time led believe first So this of XXXX. amongst the the and Outcomes, first all segment we'll since start percentage-wise the quarter is

lower good the on your to inflection When Investor a does growth call, Outcomes positively? you to impacts, One, that from pathway as the And quarters outlined? this. for So on setup over of both to parts the vision there. more see do in that Day? when think, lead but a gross coming inflect know the sustainably margins about margin, see the then quarter And margins towards Two seeing segment, this earnings top was I there, the to talked still on operating last or bit I back income. trending is margin targets line a start sort we you

Thomas Deitrich

Thank that take here. one. you, can I Noah. Very good. Tom

it portion that though through, the much and led on the we the And really of to in targets line onetime Difficulty] portfolio It's little there's we back-office more here projects And of line. the starting the a the is on see very what were revenue portion various revenue We really, to revenue record line. there you're Outcomes us the Outcomes. to a quarter. That are show software us move saw [Technical for the now pleased portfolio. So with in growth accruing Outcomes the things bit integration in the through showing couple of SaaS services Outcomes starts towards and was new there. is to or leads starting us. it what of what knew the said, margin Investor XXXX Outcomes the of side given more roll and of to the growing components Networks into And ahead underlying you systems of out for on the was was lower Day. than particular, What rather gross laid segment. the That's tilted of with strength still the to the margin last all that's off quarters growth structural what that catch-up during services of nothing is

is that XXs for still the the kind ZIP low So overall. right Outcomes code margin gross of segment

in little said, to finally we've starting it pleased several the It's happen. a progress. moving the we would to business it So It what working that continue this for I of isn't to towards. structural. really expect things with margin is is quarters. really much be bit of lumpy, we're get the What That does more It to general trajectory more direction, bit the and growth been pattern? itself. a longer take sustainably is about mix that scale the and right had. more to the types into It's

Noah Kaye

remarks, color, for since during up of Hurricane discussion the And Tom. was prepared want on follow there that that. to I Thanks a Beryl, Okay.

without that by was there I that power And always it's think we're way, think some challenges. for I weeks. storm great and had the customers people you several have were and to ERCOT down -- public broadly the has But some response the I pretty criticized. think aware for

you need does capabilities, do So Itron's of when it help Where response you opportunity services to capabilities? capabilities extent and event, words, and is ability natural the Itron's offer? benefit disasters? this your tell at from those evolution And is company? what more for to to improved other a challenge In an potentially that with what to of do where this look the extent you grow that what to you using your customers about

Thomas Deitrich

category the Yes. I definitely for put in us. opportunity it of

as invest can to use the that as platform, you grid continue and Intelligence outage to We well Edge in management. Grid put resiliency capability on

to for get scene vegetation can you where the correct be faster. crime and out proactive figure When and outage like can an that an things you to it should capability in sense. to a You use management outage put able have occur, of the

we've care up you truck and some some to trees fully. against critical where of take revving Here's got the vegetation that infrastructure, roll more could

is get for go like more So ago, now. not, and that it investment in often accrues we're that and the question but type category moving portfolio, our new our our eager the of reliability and think direction and utility and moment definitely Outcomes get revenue the of it's sadly in of of definitely infrastructure essential that deployed to we're segment with is with overall part we working to opportunity in happening the in are the we that us resilience relates to into. Those floods absolutely storms to customers a of than world engage we're things That and deployed. back customers -- something the fires

Noah Kaye

guess intelligence at broadly utilizing I uptick that that's in I'm portfolio. customers are even capabilities it, management be the response coming Right. what the services, the here, should to in the distributed and that you potentially across of with outage Beryl? happened last, that the more what kind getting seen interest base customer call embedded in quarters over Have

Thomas Deitrich

Absolutely.

much like situation there. things opportunity is in sure, for wildfire West areas the is management meaning interest seen the in of broader management, an vegetation clearly where in we've very So that U.S. a Coast prevalent, type

our ahead. government well reliability. in So in is portfolio for gives what activities increased. Their again, lot us and years clearly as conversations invest are this also of high. about a resilience interest of level There's again, funding that has to And of the that with customers portion the optimism area

Operator

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

Jeffrey Osborne

the just question Tom, or set of IP-compliant? existing up migration software that like utility. the those itself of aren't kind not Would would path? have to meters have even maybe even work been the the on to need in to around I follow meters upgraded bulk back installed wanted or prior Houston some be XXXX XXXX Yes. with they the

Thomas Deitrich

to There's right terminology Yes. probably there. path a use migration the is

So clearly, that customers lot but of with or like be if you could a full of on a wouldn't would replace to set ongoing selective territories. a something necessarily our a be want deploy an It hardware, to of basis. it basis you need kind deploy intelligence, new and across the rip setup distributed

Jeffrey Osborne

And year I or broader in narrative and then load around the much around ago call far, integration, a the it's X just the folks customers, more curious think EV it. you with conversations maybe renewable earnings much and I'm just prior from with utilities past X cycles, the so Got more in past, was reporting been but growth.

and I'm load in help the areas growth just to EVs, and to which at previously? renewables can in investors particular prior Itron seem efficiencies to sort DI of and by maybe impacted as curious, positioning so aren't least out alternatives squeeze what that nonwires do manage the of grid of and be And

Thomas Deitrich

Well, first X overall or already growth, load touched data the yes, more or the number your you where in manufacturing, changing but patterns, have that in or sorry, more of with factors. also are reliability behind storms batteries them meter PVs more centers, load with of different onshoring that itself. -- meters resilience are We and a struggling then certainly, changes utilities of prior and question, EVs

in investments are to of So of to made the things connectivity. capabilities And to we've Intelligence have it Swiss you Grid down is it platform. pull need blade we platform. It the exactly one solve comes to almost of what Number that Edge Knife, a types that that today. out Army all allows problem it do able goes happening, be you the but use to to like those all

assets you've four, edge together. can to assets. connect You are can those you them know start optimize they into that got out the work you is develop visibility to the grid. And what Three them have of to control you is at to of start Two are.

nonwires a in that alternative. apply can you So

So coordinate hey, the you let's can this power Say use assets. from battery.

using customer-controlled develop to plant power assets. virtual start capability Let's

and reliability. Let's think use can ways that about for we it resiliency

up than capabilities all with absolutely in think the a that the That's use problems that mouse can industry. why against. absolutely here, a about you it we I'm in others So complex way and trap they're talking utilities deal helps better the range have different we of

Jeffrey Osborne

typical scrutiny I just the the end mentioned Perfect. that 'XX, Is one weighted you the seem What from X-part part bookings X-month, process to wanted could If of on make. you that of in. Joan maybe you year. that will just what then on are towards X a be seem are half there lag that some first a squeeze softer has through? the remind could -- I implying the to eyes? that point is in that one up follow any regulatory already to if have trying of to or just of or the but be risk us your the that. she the it's that last awards question is, question back is was -- going of X-month, installation? technically on XX-month that to approval the And Joan And hurdles regulatory a the start

Thomas Deitrich

right. Right,

lot is shift the underneath could conservative we about, bookings booked, is than really, sticky. I although really away. So a pending the that is time. $X somewhat to in there's that. reasons number go billion it And probably And And is -- Once it it's normal very, larger of It contract that doesn't very approval. the it's talked sign reason it is makes I really do and The overall. award discipline that, our but perhaps X are regulatory sticky. that think bookings bookings

are and days inflation a complex need of as all higher, utilities as upgrade are transmission, higher, distribution little more rates The these given Generation, that challenges regulatory consumers tend be expansion. Interest commissions. are a well face to first is the one is bit paying approvals struggling in bills.

The So of things, think for at you rate a more goes it the case you a So through pending funding part times. bit total some rest how regulatory of as of all of covered the it those the do commission, complicated federal portion That's a that? makes in example as the of rate all answer. prioritize has utility, do bigger bookings how in the case part process the cost of the is the an then IIJA into That's of government case. the being funding. us larger of side extra to step with the government, do and where that by

ramps rate before bookings then the Joan from means So a typical project towards pace time really as board. bookings and category the should you starts so -- X-month I mentioned, do is got math portion pending the get a a of point. time bookings the do center usual. I that you second that the that to booking are and XX-month think little range, more year, being the And more given of could one until now, do sort begin the moving, the half across but usually than the lag you project see other, things can tends a say, sometimes of the in the to bit be, kind taking X-month, extra which step of that X-month, bit from then cases, is to would that larger those just that we in

may trying So like. look want like. about to or at ought be that what to least that 'XX what not just it today. We're We does profile transparent give about timing guide look you 'XX and to thoughts

Operator

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

Ben Kallo

that in you record were Tom, just Maybe help quarter. mentioned And in back terms could going you see the through then of whether backlog shift there it the Outcomes some Outcomes piece services the to in next Outcomes? talk if that takes us question. I'll business, into just your or see what's to if quarter have Maybe of there. then -- follow-up that takes 'XX? we'll we'll how And kind of margin higher-margin And it a

Thomas Deitrich

start we to to segment backlog, by additional Networks plus typical maybe do exercise top services got able of network a overall, then you systems tends you've get to it The out happen on When the all the use together case, use your get capabilities know installed and back The on it or what portfolio. doing to the you deploying simple additional would be data, the start profile office that. and more revenue just that business to but case use on on more the to start layer tends don't is and then start to side Sure. and first of to which actual and wired SaaS is AMI to the by is software that capabilities, work, to break it's make that those layer Outcomes. capability, of be XX% then unit be

under a the the we feel bounce XX% quarter-to-quarter, recent I scale Investor in So I you years around that XX%, still Day. little margin profile targeting, but the general little a saw that what that is that we're project second moving very little is do and bit but size margins Outcomes the ] the it's get of in happens, profile, ahead, that towards given as project, about mileage the over business, bit revenue bit you quarter. for that to think [ varies what a generally out and -- we'll and for the laid exactly good

Ben Kallo

do growth, about M&A of there? just complexity the on of then valuations And kind the serve, changed Or to has the talking maybe that M&A utilities you you us front? guys ability has on update emphasis on an reduced Could environment of just the you it the because load give for your M&A? that out

Thomas Deitrich

Okay.

to portfolio expand against. that to problems to our in build no platform a organically it flexible put up the to we solve wanted We change know allows aspirations inorganically. or they So to our use our are customers

down to just think the come are probably that higher sense. in generalized to the we which can M&A want grow there. do the which to inorganic we they were, the space. I generally Clearly, anything, a valuations clearly a but front, for bit in options change no have from portfolio where Outcomes So faster what Outcomes hardware of tend if than on valuations, the than organically, leads that in software area are portion

in of the So something really something for no we're scalable reach tilted our change to towards that's and us and breadth looking truly is Outcomes, allows portfolio. aspiration. expand What that

Operator

line Guggenheim Partners. next Joseph the our coming question And Osha from of with

Joseph Osha

one I folks. just have question,

midpoint these year. the at comments guide, of made some ended you've up that Looking you've with where for bookings up the next looking this at of year about showing your

So a guide CAGR, your to conservative by point, only math, you're midpoint the of at my me. at seems this looking which 'XX X%

I today about if no, to you XXXX but answer for comment willing out suspect that put range wondering have implications I'm be wondering, might Analyst I'm a So the the at that we're make Meeting? hearing numbers is you that the

Joan Hooper

Yes. say to the change expected of to that out be ago. 'XX. 'XX to numbers all ranges I we line We months 'XX, and way never the 'XX put a from couple straight a there no the would it

So were made, at we if bookings than we we been is have targets the XXXX. be for end Tom of transparent provided in they The of different would the commentary with the behind they the as that if up just just on they 'XX, beginning is revenue to stand that end 'XX. described rollout of

growth. in $XXX got the at the doing consensus sure current to that, consensus 'XX for really look normalize for 'XX. And the out that make you numbers 'XX of X% catch-up already if we million is had So current there, you just you

catch-up you But be you're effect So kind midpoint careful right 'XX, in to if that of 'XX the of of because it's more like you 'XX. again, to the that guidance X% got take CAGR. updated

Joseph Osha

I going 'XX off, okay, through Well, bit even down to but on off correct this your assuming X% X% you your math, that make a that comments or to 'XX if that 'XX comp? at guide looking mean, seem because doesn't single-digit then, at doesn't organically me. are business drill fall implies and sense low of growth, grow to you run that which 'XX the of midpoint about to I'm even

Joan Hooper

Well, overall again, of kind Investor of you time off looking 'XX I at growth 'XX, based numbers X% if the the on look to market the Day, X% were company. at think at we of kind for

did not targets, put described 'XX But if 'XX, that's that. stimulus. than probably So as also a organic. it the lower That's it's again, you any no And off bit certainly, we M&A. anchor we

higher still in we So that, stand. hopefully, described but it's back March numbers than the that

Operator

Johnson line line open. the check our next your button. from Company. Martin mute Rice coming And Please Malloy your Malloy, of & Martin question with is

Martin Malloy

that. Sorry about

question update announced the and how give an this you GE one partnerships are those me with going? maybe morning. Just was you've I Vernova and could us Schneider if on for wondering

Thomas Deitrich

Happy to.

So those excited as partnerships that alive behind and well we're playing The and out hope. is it we something absolutely would underlying about. thesis

many technology. Our struggle of customers with speed with keeping in the up cases really

more, I'll together it, them them by pre-integration how and sure cope faster work the ideas new out things later a saves we help at box, So of on. infrastructure than our with call time lot can come better and that making customer that doing changes, the it

today, discussions with on in customers, pilot cases, ahead. those fruitful acceleration hope technology very partners again, with of specific very concert going number projects to a revenue and years the So in which we or targeting some in will demonstrations, lead

with playbook want So I is use would say to by bench growing partners that technology we quarter. and of that alive that the and well

Operator

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

Pavel Molchanov

Can just that preview based gave the utility drill 'XX explain kind beyond down of that? of activity. might what you you that in prepared saying Can revenue sneak remarks of Yes. contracting on 'XX certain meant by shift you you this on kind

Joan Hooper

Sure.

there just be to XX-month time only given time that question bookings skewed first booked is response to in other is that So careful us $XXX to an is remind be 'XX that the being something look into X-month at it's profile 'XX it natural when latter the of converts made 'XX. comment, more to of million of catch-up I early was too the all, again, you the we I'd line growth, frame. revenue thought in guidance. revenue and for to to of part just year, that The you between a prudent again, say, Tom for and to it giving earlier 'XX, that described kind of 'XX forget existed just when normalize But don't

on had 'XX. we that commentary the of kind that's so And

Pavel Molchanov

post-COVID rolling finally? we that's then through? I also useful. obviously the legacy are flow 'XX that contracts on pricing kind looking of margin remember, to perspective, kind you from off. that had of are close kind And latest How a Okay. of roll-off ahead Yes, some to the what's

Thomas Deitrich

cost I in say much with see working pricing into expect on marketplace being going to changes far 'XX are that price and would certainly that projects I is new would the today. based the pricing it stay more indexed say roll out. start there what we moving ledger the bookings well the positive and would model Sure. in cope side out and generally it on your side overall, the well with it's deployed of of to to pricing thus the -- and question, on able

coming ZIP in we revenue closing in On and benefit that When a you still those left the bookings numerator XX% going with got second probably will the the out new but of XX-XX, through some place still roll in have factories this of meaning same bad that's the to that itself. we change to of still that prepriced overall, not denominator year. XXXX, XX-XX and in be. are half backlog Again, is backlog of to in itself, we're code get

So helpful us. for is that's and helpful overall pricing

So direction executing is the well. is and moving like the team business the

Operator

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

Kashy Harrison

that I the revenue demand? but could earlier, So was pull drivers just much this increased I How faster apologies increased versus this the of forward you conversion if just speak year. of to expectations of missed or is a wondering if backlog

Joan Hooper

to Tom add Yes, I then and start, in. want can may

in growth Europe really segment, at I which say water has particularly would in if look initial the unexpected sales. Devices our it's So I -- outperformed expectations, in

that a water there's a this upgrades not have year for So going Europe in on. customers, of for big growth to pretty our us technology and we that's lot planned on new would

So that's one. the first

faster of a some is network now just Outcomes the caught is one we that deployments second up. have than where little going The expected expected. we've would bit probably we about

Thomas Deitrich

a overall. I it's think accurate good and summary

Kashy Harrison

appreciate that given just just recently PJM like this your of color. just a second to just added a but with then had products, like this? plant bit and implications my and And wondering events couple days area one, little I is given ago, I continue you theoretically, the for was events into demand. power about if within your the it that see happened it. fresh think this know certain a Got record we auction if demand customers for discussions retirements how to the I factor

Thomas Deitrich

Yes.

it's comments in, our they think mind my no absolutely customers, I of moment. be on all of for are the to I matter if the U.S.-centric U.S. the which that part of isolate

it or than the So years call I'll on has XX is more years territories, it growth Load different PJM the XX been next, over years growing. essentially it, but can very not the flat things. or broadly. XX only previous that growth. fact now it and XX years Everyone that where about was was changes it's growing, it it's of and But speculate now rate X,

This of how to And excited up invested that tech an the a distribution comes area off the but years, and of with on where investment number showing existing pressure it needs buying you've and is a improve bring to got to when it efficiency, upgrades say? efficiency system. And setup tremendous things, we be. clearly out we're see have it got in would to to online, it we've purchases, that companies as just generation well could it grid, out also the lot big pay bulk of for that bulk as power that means your play cope puts ahead. you've on get improve and of the overall transmission. distribution You really side it more where -- but private We terms off to power in generation and in mega-tech a shall years hustle mega-cap taking

portion customers. Everybody's level say us of got problems for of associated that So it's I would unique with some to opportunity country. a tremendous our and the not any it, to help

Operator

of coming Moore with line from ROTH Chip the Our next question [indiscernible].

Chip Moore

back the to XXXX. wanted to trajectory go I on Yes.

you framed next funding year play to very mentioned government think out here think of for a And in I role starting Tom, some well. dynamics I approvals. you the

should maybe think not view we if embedded benefit yet? that in about how stimulus longer-term the that's Just potential of

Thomas Deitrich

happen. the me like. starting to awards it didn't exactly If like. Program, to round use XXXX handicap for difficult Very uncertainty timing Yes. what the Clearly, small looks IIJA knowing are funding those on put try GRIP try first a it to just and out. of into We segment what with targets came very the I to awards that really the looks

month, office will with in I it customer think grid year. fourth say. public agreement the and very administers deployment funds The a quarter made that last first those I last between just the was of was became just the

and flow the upside. spent, When but 'XX now it that accelerate, agreement quarter was money still but awards in difficult the to should and to that it of -- first second of eventually quarter 'XX time announced difficult customers can the call you call, to maybe it and, see getting round to looks us, what the money like, of time it's lag rather, of see time of that's you that actual comes, second through. I'm the to is out is will only numbers. signed through the to hopeful from So XXXX, lot off our get call it, start timing first lag 'XX flowing why the of the very quarter, and can fourth in that going bill kept to it a it that that 'XX until we

Chip Moore

it, helpful. that's Perfect. maybe just Appreciate No, one. Tom. last And

your terms terms sort leaders conversations, Just of in I adoption. guess, edge in of this in intelligence laggards of with and space

you are over those how I conversations you guess, think, that about tail Just developing And evolve? seeing do opportunity how time?

Thomas Deitrich

or are to to continue why thing customer We in same of it. the see only electricity would conversations they they this The isn't create competitive about the at starting need space talk the that think can't where the and they this that in nearly about on I use could side accelerate. things area. how any do least competitors thinking capability

that today. So X,XXX have be there's about on we customers global I think market are over in continue And thereabouts in were already or are deployment Today, to a there active the we and absolutely scale. customers or booked. XX ahead

being able So you game this in deploy the that the terms to ahead in that's see early still runway today. movers much can are beyond the of

Operator

line with And our Moeller next question the of coming Canaccord. Austin from

Austin Moeller

quarter. Nice

year? terms be in utility driving contract over any the that or with projects either specific momentum should Are Just thinking the specific question a size of backlog in we about next there my first here. more

Thomas Deitrich

a bookings pending ] It billion or I Clearly, I for that appropriate category. there's, name, me know, be before that are to XX don't there so number about, but are wouldn't in that out them talked by of of counting them. [ stopped that roughly $X call I

So pretty a a not on broad wildly customer. dependent range. single It's

Austin Moeller

old evenly of be the And where That's back-end Okay. QX? Is we in loaded, flowing of more should terms inflation backlog as pretty at not to another just out QX? that that helpful. QX, indexed? we question, was expect are Or

Thomas Deitrich

pushing It's it clearly frame. I it's on time overall. of portions some are out deployment based ahead would flowing say

The kind So range of flows roughly majority we that ], ] will, in range. XX-XX [ there of through if that in the are today. XX still where it's 'XX, still out [ you that's 'XX

we've different slid track not So our what things into few quarter a a about overall, spoken than have but maybe wildly or before, expectations. X,

Operator

Partners. the from Scott Seaport of Instructions] our Graham question [Operator line coming Research And next with

Scott Graham

are little quarter. of just even stack because speak, all -- incremental and the normalized is just is case it here just slower, nice sales in seems of wondering, And just to you in on margin your it's obviously, the are just now due just up And quarter a rise? here each behind maybe creeping be people bit that. or where that production their past which on lines Yes. we're comparisons incremental the that I and what seeing of is your have as to I'm seats sort Joan, second a wanted the margin, you,

Joan Hooper

I it at by look Well, our again, would segments.

were significant That's primarily the really few particularly the the years a portfolio. in in look years, at of a they couple going XXs where XXs were. you really improvement pruning last if ago a mid-teens and and to this it's by now Devices Devices, to back it's driven year the year. They in compared last -- So

had very company years they've and on much on last focus doing case strong growth margin several asking job they've a out product the few but fabulous bigger improvement, and done Devices business unprofitable lines that. In So Networks, quarters. line the getting in to a We've we ago. really were been top of active of in that not margin

think a of I it's product combination mix.

others. margin factories. you then, rich as of of constrained mentioned, up more that revenue caught previously certain products as So in the gives us the than more our are we've And volume on course,

you standpoint, an a so absorption margin benefit. get And from

the that and volumes as a about Outcomes solutions product And in. little operational the various of bit, that's down efficiencies with mix segment. and think a coming Outcomes. both that within of mix So really are Tom of more the covered Outcomes associated actually is function the

Scott Graham

Okay. and And I hoping appreciate a on congratulations pipeline a big Tom, it bigger it. there. -- award To can that. of for that billion? you -- of guys would you some the was $X into unbundle of getting a maybe you, solving it bit us in number I'm just just ever though. I solutions lot that that's are been. Is of little than you was those -- hoping share more you've you're parts the And just more today oriented

Thomas Deitrich

optimize management usage out to and decisions biggest richer at visibility the the portion those to connectivity able assets out Grid grab -- being is gives notion get or network control putting wildfires more this much it that and at assets management the or able platform. of to vegetation The of edge control Edge Being a to you It's of the edge. intelligent Intelligence networking would of or make able much to the of be edge. around edge capability data outage able to assets being out

Edge So speak backlog often. heard about or that Intelligence pending us largest you've Grid quite projects of that the is bar platform that none, portion that

Scott Graham

Yes.

going jump So then? up the are probably XXXX endpoints there in to

Thomas Deitrich

growth and we in it. you'll backlog clearly of And be that it steady projects, portion see growing what's Yes, today. Absolutely. as book quarter. overall will every still That's new

will endpoints that XX think do I that over quarter-after-quarter. a we So DI-enabled the to little grow number think, million, of I about, continue today, talk

Operator

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

Thomas Deitrich

again look quarter. Thank We joining you forward the today. for call all to next updating you

Operator

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

Itron (ITRI) 1 Aug 242024 Q2 Earnings call transcript