ITRI - Earnings call transcript Q3 2024

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Operator

Good day. Thank you for standing by. Welcome to Itron's Third Quarter 2024 Earnings Release 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

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

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

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

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

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

Thomas Deitrich

our by another to needs ahead of thank quarter joining our expectations everyone, future. Financial cash Paul. you results include per on reflect were our and substantial The the Thank and execution our million, continued for in delivered of $XXX third adjusted by Itron's $X.XX, share and EBITDA Slide non-GAAP million. demand for supports quarter energy morning team. third opportunities for growth are of of water fueled earnings flow you, of solid Good call. the pipeline shown X million, and $XX revenue quarter of of highlights $XX free market

Turning Slide to X.

bookings Valley bookings distribution Our GenX through the Cooperative first to Electric Grid million. selected receiving the third negotiations and partner and Valley was of distribution awardees with Department platform during Smart DOE, of our Arkansas third NRTC. for their complete grid the Arkansas $XXX $X include at intelligence grant backlog technology one Itron's quarter in automation quarter project. a program of Noteworthy end Energy were was billion the the quarter

their users. is Energy valve further Itron intelligence. and CenterPoint enhanced offer endpoints safety working The shutoff gas pressure edge Additionally, the integrated to safety safety demonstrates to of commercial This the to industrial commitment include an additional with capabilities with CenterPoint's Intelis expansion features sensing and of users.

any the calendar XXXX exception. no from bookings award as time project the latest that commented and expanded booking This Duke for regulatory of edge capabilities quarterly we our our can distributed register approach have backlog. extend award Finally, to in call, and our control. our given and quarter-to-quarter include to DERMS variability and processes to support funding period, due Energy we for increase to intelligence recognition disciplined can is prior In grid

'XX. We pace quarter, are regulatory of various the this pleased the quarter month processes and funding within first of with the fourth

or a for full result, book-to-bill As greater ratio the X:X conviction of for year. a we maintain

Now our results fourth outlook. quarter and Joan quarter third our will provide details of

Joan Hooper

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

million anticipated XX% and performance foreign income $XXX of from higher million an tax as operational of orders and $XX stronger last $XX revenue per of resolution in as per to net well revenue tax initially increase solid of or net by driven share share. quarter and in and shipments in Third earnings operational net early customer to expected. $XX audit. in and and than resulted benefited year-over-year non-GAAP was higher was fourth our income diluted quarter The million GAAP favorable by or less the than $X.XX a This basis driven approximately of prior XXXX. Gross The the levels diluted efficiencies. or million a margin expense. Both share points year. $X.XX share of improvement XX.X% per was GAAP was of income compares due operating income increased year interest XX per higher $X.XX

water segment growth Regarding due $XX and Solutions non-GAAP Network of Slide share was flow in on metrics versus quarter Solutions by of $X.XX basis, reflects sales and ago. basis, X. increased million and software. year XX% improvement X. Slide and million XX% increased diluted year-over-year, Device earnings operating year-over-year million year versus The business EBITDA ongoing a revenue revenue was a Free $XX XX% record per currency currency constant recurring increased $XX higher Non-GAAP is with revenue volume projects driven growth income million primarily a driven Non-GAAP associated deployments. Adjusted Outcomes revenue on was new a on primarily increased to constant by $XX $XX on net the in revenue or electric million ago. growth. Year-over-year services a income year-over-year. increased grew by strong XX% X% smart for QX $X.XX cash year-over-year. demand.

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

the diluted and by QX increased an per $X.XX $X.XX share record was Pre-tax by performance of quarterly non-GAAP driven improvement, share partially fall-through and higher share higher contributed profit, operating all-time $X.XX earnings Our revenue of gross per year-over-year. offset year-over-year operating expenses. per

per income foreign of in was share tax net resolution tax expense due to resulting earnings quarter a audit, Third favorable higher $XX million increase. $X.XX a reduced by a and

through points XX.X% was margin Slides results segment I'll prior a Turning Gross Gross was record the compared XX, XX.X%. Device operating up XX year. revenue QX Solutions and review margin margin to was $XXX million. year-over-year, with was was and reflecting of million basis and cost Solutions and margin efficiencies margin effective was of XXX XXX with margin management. Network gross operating up volume $XXX XX.X% basis operational and revenue points, XX.X%. operating

operational margin XXX basis another revenue This volume margin this Outcomes margin increased services operating XXX XX for level a quarter down margin was points, of mix cost. by record operating operating with increased was margin year-over-year gross and of basis basis margin revenue year-over-year, points of $XX and driven XX.X%. margin was was basis due XX% segment. million to lower XXX and and and revenue decreased Gross efficiencies. points Gross up points

the end the to XX. billion review debt third and and debt liquidity Turning was Total I'll debt was net of $X.XXX at quarter. $XXX Slide million.

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

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

rate, of versus share, this tax of an which of just For normalizing per assumes $X.XX non-GAAP share, an year. When this implies XX%. had XXXX rate rate range X% QX effective the an year-over-year. earnings X%. approximately tax expect But increase to is QX year of a QX QX diluted midpoint, of to or last effective a $X.XX per $X.XX effective of XXXX outlook decrease $X last At of tax XX% of we a

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

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

range outlook Our guidance. the share. share is non-GAAP per non-GAAP up prior the XXXX to versus versus $X.XX diluted per and midpoint, At earnings XX% estimate is $X.XX full EPS updated XX% year

combination normalizing targets not and for financial of loaded Investor March operating time, XXXX XXXX remain Although lower make formal provided bookings revenue a XXXX committed back-end performance this environment assume to at to XXXX. being growth at We very financial Day. provide reasonable we this guidance ahead year's to ready a expectations, it the are consistently the XXXX of profile

back Tom. Now I'll the call turn to

Thomas Deitrich

And Operational you, Joan. gains we coming the momentum expect quarter. Thank in rates is normalize and Customer are while growth efficiency to larger third clear. growing. during trends accrue continue demand the the to quarters,

direction the strategic portfolio confidence services our placed targets and remain XXXX products gives is appropriate. that of Our well broad innovative and us financial

from the influential industry are intelligence and the has executives, the resolve data full of have industry. how the it nature encouraging non-financial to that the necessary most few us water of shifted will annual and the recently ecosystem motivation of and This pace of with thought and get event, on interaction where across opening accelerate We serve a leaders and for edge done. our we customer to line other what is pressing is the from held complex and challenges Q&A, do note. discussions industry to today. Significantly, It display. clear Before partners resource was facing to Itron's the energy the power of there Inspire grid utility depth highlights leadership to

in which optimize findings industry. The ML and report broader thoughtful new accelerating time questions. Edge active the for are explored customers Edge of findings. Thank a of dramatically AI please conference, areas the research our utilization, which value utilities available industry, solution greater technologies, the trends utilities and resourcefulness Operator, for is artificial with engagement. analytics adoption. AI include And capture, AI I places The Inspire, the download data conjunction the executives and asset even utility review to AI Also within of for barrier infrastructure. simplifies considerations advancing to and our our Grid call key the report unsurprisingly, During focus that projects. everyone itron.com, expertise lack for intelligence already announced current Essentials AI Essentials we perhaps ML the at approaches to line report, Grid the sustainability of of on for cited today. utility as you encourage joining the open offering. to helping our consumer XX% related and progress, to adopt and released agile reflective machine adoption, value. we some greater process utility to enhancing are utility advanced learning XX%

Operator

Our Kallo first [Operator the line from with question Instructions] Ben Baird. of coming

Ben Kallo

clarify, about growth Congratulations the of be year. will next growth. I just on talked same Joan, you there year, not growth It's just want the quarter. to next when level

Joan Hooper

give Yes. Well, in revenue catch-up guidance 'XX. is, in but people we're wanted position we to things. a of million remember a make yet, of not sure One 'XX couple to $XXX obviously I had

is another you fact So that the XXXX, bookings grow so careful loaded and factor. normalized be that on back-end the are a

said no I've really different So than what previous on calls.

you much 'XX to only than the at current the growth from compounded look to was 'XX If X.X% higher targets, we to so expected. estimates it's growth 'XX because get the X%

the with careful be from growth rates. just expected We 'XX. So to a never 'XX linear

Ben Kallo

you next going on just you the deals Could quarter. to the for the question last strength couple behind talk then there market years? of of about And just bookings of expect or quarters that out the you in and this kind the continue state is have of kind that the guys

Thomas Deitrich

to better disruption alive Thanks, we're advantage trends water, remains extremely doing all And of like safety, those gas able are deal positioned The a or climate think managing Ben. increasing and Tom that. I needs with demand of well well. or The to market here. take utilities constructive. of be things to job

in seeing regulatory process. We well were definitely have funding like and remarks. of say, XX% that book-to-bill X:X are $X referenced that is of really I to would behind referenced and the front. that Last for seen over regulatory We the year prepared something quarter, is us, basis progress on progress, I closer awards probably pending underlying XX%, that's the full in on process now definitely what billion a I the

ahead and market. about largely results. has, I to you of good our around perform QX, feeling the the overall in gave that So a Europe quarter global least Americas, but third On bit commentary through expectations, little just was a the at level, the saw continued

Operator

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

Jeffrey Osborne

billion right, the you that Maybe that you trying to to you XX% the that said were Is $X follow-up quarter. in came fourth after October just of in bookings Tom. heard you're quarter? to last the on point, XX% and for way couch mentioned strong I If then

Thomas Deitrich

to booking close. we've we achieve a you're point the But billion quite yet. that quite, seen time, a $X I year It certainly, expect But doesn't Well, we ratio. on the not of last progress regulatory the that mean on as the front. X:X to referenced registered book-to-bill it's the for

color a I market progress. the excited just little remain So give we of to and feeling as context about curtain people that what And pretty bit ahead. wanted we behind to give the why see to about the opportunity good

Jeffrey Osborne

Got both, just clear, regulatory the it. some be just referring given requires there if to to front from it were federal federal Program? awards and the is GRIP both And you're state that

Thomas Deitrich

primarily bookings international that Yes. funding with It's a X. some things the And gave. the associated commentary combination are there's but have into the lumped we again, it's of activities and it, those Americas, government

Jeffrey Osborne

you've Devices of to Perfect. And then And expect in in ones. And retrospect, evolved all the frame then strength the segment? debt done? the that Can what's offering in few recent you year? pipeline months? that light that just quick next do how you past has water the M&A X the -- you would other And for in how just year continue

Thomas Deitrich

And Water into to -- What get me really expect start holding to period industry, it for some performing again terms channels of million We a year. fourth running The on our bit at means the thus the that are as reduce basis. And above little water. constraints to has continue let and the million-plus expectations that of we in times at global above is for on lead far the run would you set after certainly the a devices we look good. been are to chains that don't of last I have amount bit. to on with across So we're can quarter supply know that maybe quarters, start a inventory I X that kind that. next extended in customers supply the $XXX lead pull times year. expectations see tends been as back normalize our $XXX starting level, rate. rather

mean So anyway I quarters. the coming But do think in is doesn't supply get turns over just itself. the probably more that effect It's that backwards. accordion going rate chain the slows the down market the you

really ways say be the other placed have a in acquisition On present sheet will something segments where we accelerate what across that's edge position obviously are more, many intelligence with that something scalable we move for. in really when grid growing a balance of the than those looking themselves, of the place we'll be platform puts the that is with to lot accelerate company, seeking our We're but market as want rate. themselves. what we're looking very really something that to those many, attention would a in past. our looking and market. that customers. will add side. We those opportunities We're That's M&A sharing And present the it we to for commentary very of and even is on that the outcomes in for the I our similar mentioned active would pleased front, our good faster to opportunities some that What growth It's opportunities. that are us bit

Operator

question coming with of Kaye Oppenheimer. the next from Noah Our line

Noah Kaye

of the usage whether Tom, stage you evolve to mean kind managing you Grid higher visibility a December. XX DI available for composition launch talk these range say, of your the early And a for about adoption see that that, or of at it's we bundled to just Edge that Are we over, Essentials, the is actually for understand next recurring the more outcomes what just mentioned revenue, pretty can solution until that an But not revenue really outcomes just the that within XX rapidly? And terms kind of this of does broadly is commercially more utilities. to now of mix margin? months? going I of how in let's what inflection? network mean that is growing should solution

Thomas Deitrich

different of X asked. that question to out concepts pull important you I are So think the that

platform as different infrastructure. it featured of a First in DI agility field, management you in have That capable and perform you the they equipment intelligence. At what's lot more When and of there point, efficiency through something, edge. an lot of That XX energy distributed foremost, pretty out are a to allows and fielded in use or or robust edge things got that advantage utility out able be endpoints a as of that. of put the millions applications very is offering. lot for like where things capability grid like buy of this utilities, you are edge IOUs, millions that intelligence a to you need full your of you distributed the or in that in engagement than consumer like kinds million grid as a more can a resource it backlog, take larger ground, large applications inside grid of backlog running think that for safety much have said, to is things we've

and endpoint, As able a say the the analytics, the perhaps utility massive intelligence IT about. software, that we to what edge integrate towards the muni capability network, for department customers, packages a a ability it is of DI to the is into broaden midsized it more kinds in Essentials that and box really co-op It Edge the really doesn't offering. up overall that or easy Grid head-end DI grid to be makes all take have capability

think So this it out with for us more customers about the broadens serving important capability. opportunity as we

doing. some innovation the Grid adoption, The again, eye we someone's that's really super about they Essentials of all something our for there. past Edge look if market what see what or field years, idea So in about the might applications to put able rather than out in The do is of is able innovation customers the years is spark to which is we're in months what excited utilities. being quarters about. Relative be you and pace typical cycle measured in prototype in to to the

becomes is our robust So part business of something pace of very in a this innovation grows, and years ahead. that the

hope of question. unpacks I your pulls that sort in that X together mentioned threads So and you the

Noah Kaye

the Tom. follow-up think next... for over the recurring does, right, It and we the within really mix, segment. that implications trend about should Outcomes And growth the around How of the was revenues

Thomas Deitrich

more and and Indeed, those of quarter-to-quarter what and and that to back lumpy the bounce But will Indeed, last Outcomes put missed that tilted we some back business scale range even laid of one. definitely XXs gets a -- I until will certainly towards think little in I for to a was is bit to ahead. sorry, it a would that quarters towards services it targets it quarter in the the depending mix in more heft. we I XXXX see we that quarter revenue second margin still certainly, that little be SaaS We what saw expect see. on bit bit you into one. licensing Outcomes missed revenue one-time the and kind bit more out types little think services. of more the was a swinging gross

Noah Kaye

Great.

Joan. again, for allowances. release normalized one frame a relates follow-up rate guide business quick help that Taxes, the But good Just you sort sure valuation for should of the I'm more going of tax out this forward? be what can if to us quarter. not

Joan Hooper

Yes. say rate. would about I probably a XX% would normalized be

many pertained the to many, settlement XXXX to a a tax the per to ago, 'XX. favorable audit $XX was $X.XX years that alluded or this yes, quarter, basically of So I share the million foreign

So reserves books. And yes, those. we on once the release were to some able we audit, settled we our had

if really are you I predict, was to anomaly. would ignore about that But So discretes, hard an say XX%. which

Operator

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

Joseph Osha

looks and what give to a you that and mix the bookings at a year, question revenue for sort additional little if this I'm to realizing the wondering Noah's you're in the of sense coming us can as how like end try relative an on round billion that bit, bolus this Following of of quarter's bookings $X now? of the

Thomas Deitrich

it heavily be will backlog our skewed To Networks very that's to bookings towards Outcomes. position honest, themselves is as similar today. be and The

true third Networks that lot $X that little quarter suspect existing the backlog of growing billion looks example, bookings fourth that that I is mix. The And portfolio plus networks and of terms of portion Outcomes. is bit in in in So themselves. an outcomes faster a quarter revenue would but terms than of a like that's as bookings XX% the also

is for the the year and higher bit a So bookings it edge mix software today outcomes rate a platform all within along and intelligence or that. with the than underneath go What's that was X services itself. it's associated quite ago that, grid

offering types flows it that I of all discussion outlined So the from earlier.

Joseph Osha

mind, kind trying in business can should revenue that the get out -- possible look to here we looks what that and think as of Or it ship of actual with tell XXXX devices, and of of Now what is some mix in obviously, book representative that there's terms actually XXXX? as XXXX shorter-term I'm actual backlog more figure might to in what the like like? being in we the revenue mix you

Thomas Deitrich

Yes.

remarks. probably that we've a the basis rates code our prepared that a our think and rate Outcomes business, probably run to Networks whereas the devices continues about above in, to side talked bit on grow the that ZIP be in $XXX that million like is more the I right to

think think more than that, be to to other way a turns-based the of I be good tends portions that So itself. about the a our would business. Devices bit business

truly talking lot doesn't a So long-term that that the about. through we're flow of trends backlog

Joan Hooper

look that those level you segment are for And Investor the at Day, if I would provided XXXX Yes. say appropriate. we in targets still

Joseph Osha

would you quickly 'XX. the in for this understand of into the up Can just fact booking to 'XX, that into by revenue? bookings the it showing strength follow-up, 'XX to in just very about given roll forward show a bit we revenue? stuff that making first maybe you've 'XX bookings and the hitting perhaps anything little think spoken, What XXXX say up as trying shows how half a Joan, not XXXX window now is is up about going then revenue. clearly to And Okay. I'm

Joan Hooper

think we've booking month mean, each I close to is from bit lag you until deal what X flow. to sort is but of revenue I a different, a when XX assuming Yes. been a little time starts obviously, the

Operator

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

Pavel Molchanov

past straight these outcomes, is If X is Or at kind there Are of segment growth year-over-year sudden? kind that last which growth years. quarters of of we that X structural in one-offs? all higher probably look meaningfully is the than some double-digits, explains double-digit a the change

Thomas Deitrich

Remember of tilted factors Well, I number think a recurring outcomes lot towards there's the inside that a of of revenue. there. revenue be tends to

So show a top it And on takes a that. do little we bit it of booking, slice time up. every time to a small adds of

it's revenue So to follow. as on was to to a trend bit to revenue just previous customers got and we've that of in of flow mentioned going running on by, following on years it. And we've catch from the in of top normal revenue started that of for constrained network It's when starts to get usually networks gone shortages and -- that up some that the component calls, up -- due time some outcomes then Outcomes seen.

in about as which can that terms of grow of ahead one where targets, continue why it excited we've is outlined are in towards That's the it's growing, quarters faster Outcomes is revenue, growing yielded 'XX between business, maybe the terms month you lag But in see networks recurring it largely the we of that through So which growth. and Outcomes. XX to segments. showing our what tilted we

Pavel Molchanov

the Can of euphoria, follow-up context talk virtual headlines about well. lot of Right. In you on development, that in a the recently guess, within would of be AI A is virtual power role the kind power Itron playing outcomes? as plants. plant outcomes which I about

Thomas Deitrich

the are battery a is that's load solar as of it pump. a maybe edge whether it of Correct. a or assets, your is control whether as capabilities at There pool or existing to that a in garage lot simple something are out assets the grid, adding rooftop

optimization what lot of the able the software and has the of So to control capability for grid Outcomes is of good those going house the on. assets really to be it within a

to supply and because of demand ripe edge. more is grids, out for and hotspots our it whether the those showing growth are And at us in as opportunities VPP, ago, and up being called that's are constraints the which virtual very and the quarters So more Outcomes load growing assets customers' local or to pull power EV off the plant utilize need just in house example something you be Grid everything. to is you a really it don't announced whether pull a Edge in and to able have is more going DI you out and balance those app you supply Optimizer, demand of centers we that perfect to a to able to kind way figure the the everything data battery out to house balance segment. Several is can't of all able that be of of on afford a the area, able got some application of edge about charge to quite and to be where supply to grid upsize

and You got in outcomes can the exactly where which customers. to make a comes the assets is field to scene have bit more you agile, our help the

Operator

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

Austin Moeller

quarter. the on Congrats

question first here. my Just

water water mirror for the the center meters expect data for to centers, do due for demand grid to increase meters electricity needed the Given in demand coolant? the you data demand on

Thomas Deitrich

I infrastructure think on think segment that the done electrical in on level. side. entire that that years needs but electricity ahead, lot to for a there water as continue be us to probably grow will a outpaces growth the Water electricity more as global is an outpaces I

are bit but growth think towards both electricity aspirations I So more in segments, probably tilted a our over water.

Austin Moeller

the in And inventory did the just still in we remains? get Okay. And the just this that of quarter significant a non-inflation a margin? How gross follow-up. index much reflection reduction on

Thomas Deitrich

Yes.

that bit of as left Our environment next the of the months. operating backlog through still is QX. through it is is will either indexed end for repriced in, less XX% that flow remaining, that flow than the Most we over XX%-ish a or are XX% of today new is XX to within -- it, that call

through that So we're period. almost

that noted we the backlog side starts today. As for it, to call certainly, a will of QX more that of a to expect new bit But bookings ahead. equation right that quarter add be to quarters come and we heavy the XX%-XX% in,

Operator

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

Scott Graham

of Joan, down Did I thought you CAGR 'XX assumed math What should to back up kind or that same between revenue 'XX, implied, wanted of with 'XX revenue I come X.X% is, you and down. growth for I'm I say mean say, the on your wondering to number, X%. to heard I I down? go course. or

Joan Hooper

don't believe. say I I didn't either,

first to was comment billion, and XX% a what of appropriate, and is, of range to relating the targets $X.X would are $X.X to we had be So still I range was XX%. revenue EBITDA billion that XXXX

Day, actuals. So time the the Investor we of charts at we did anchored 'XX

get the the targets, to was revenue of -- it 'XX from to X% a the to CAGR to X%. 'XX actuals So

than lot a is 'XX However, stronger 'XX.

required So expect if midpoint, said to to you line. the we the, that call X% take you guidance is to we be at annual it, all the don't forward again, a what's get going X.X% is straight updated to 'XX get targets. And the

a you premature again, some growth. at would point, to 'XX. got about it's normalized I it's the So this caution I But people, talk too growth to off do -- expect 'XX. would

that million of out catch-up take nature year one-time to was $XXX full in recur. our which estimate, got You won't

Scott Graham

Got Very much it. Yes. appreciated.

ask both you The other is and for of more Tom. to I wanted question kind

thought believe this maybe of that and this greatly kind earlier So only million, $X let's as, to couple, billion $X number. of I pipeline several say, when was provided you has graduated hundred year. billion moving your a this targets

would did comment it your Could contemplate that. suggest that So you on that? not guidance

Joan Hooper

think Yes. that's I'd be don't I -- case. the

it to about getting we $X it It's funnel expected. delay a what would $X saying talking with booking. the So what have through not the billion than is higher a it's billion call we're in

any of don't terms So issue change I think the targets a approvals. would to we that of the market The in see $X regulatory in demand us we terms laid 'XX is out. that billion timing get

Thomas Deitrich

there is year which But or note below bookings bit in of the That's Joan our Yes. is whatever, the X We a of we something still that, this that referenced. well X:X, year first greater. started today. a book-to-bill which like QX, that, what saying the of X:X quarters with side X.X%, X.X%, on were means okay, catch-up belief

So it's some change the shift fundamental themselves bookings rather more marketplace. year timing the the on or within in than

Scott Graham

If been the on steady in of to range. operating has basis, Understood. a in just the X call XX% sneak the thing? in go-forward XX% X% you XX%, could last Are last incremental this just more like it, one range, quarters with sort sort that non-GAAP type low-XXs of this comfortable margin this Joan, fairly in XX% I in. quarter,

Joan Hooper

you anchor but in that 'XX What the XX% can to XX%. to 'XX again, not I would to operating targets Again, we Yes. income, which out, of weren't a is of talk that you percentage position revenue gave, guidance. EBITDA figure

going some quarter-to-quarter, to variability. get from you're So

our for OpEx example, did an We customer QX. event. just tend As us in will go up to

of have marketing of spend, outside travel, We a services. lot a lot

vary So it out laid will 'XX we appropriate. quarter-to-quarter, for still are I targets but the think

Operator

Capital of [Operator Instructions] Partners. the next Our with ROTH question from Moore coming Chip line

Chip Moore

clarification. a do I just wanted to guess I

which I think that 'XX, of be you headwind. with pull some Joan, coming referenced, incremental forward an from would some

I growth that. think but the just expand there, we dynamics on maybe understand

Joan Hooper

that. if ball we mean, the $XX than guidance we we range up higher about it million Yes. QX, our for at provided gave revenue at so midpoint, try to not look low that ended million, you you the We was number. did I when $XXX

'XX customers some be they that we want shipments the in and obviously, QX. when work of to occurred shipments terms expected with actually would QX or have we in So early

we trying all that's were So point out. to

Thomas Deitrich

move, start can overt. stride their right was nothing QX. It particularly that's faster. as they is market It installation little in and little projects you a the the there dynamic And in bit go us. The once accelerate direction just was Yes. hit really moving kind the what of things generally, to saw crews a for

Chip Moore

and Yes, Perfect. And my maybe not material. for QX. follow-up the particularly on outlook just

stepped And implies the you're I on growth that think with Anything then in just OpEx, that bit. some I year-end product with maybe think mind? what backlog? there dynamics margin down I in you the trajectory, of next anything referenced Joan, the some seeing but to Or a guess, of margins year keep mix? maybe,

Joan Hooper

Yes.

start really slightly QX, so. of on would is strong or it, I of the that call Most if range again, $XX say, top down performance devices. our is So million the I line, QX from for midpoint

devices $XXX QX. think maybe over typically about quarter. $XXX as mentioned, were So as million little Tom They in we a a million

an booked EPS quite in high. On that obviously really got the benefit was you've standpoint, QX. factor to So tax in

nothing don't QX. the to margin, that to not got It recur just closing perspective, we're gross to guide going so of that's That's factories. in right there process in So a our is particular gross to slightly From flat be there. but $X.XX maybe X or last quarter typically the down, higher and then we OpEx. in margin

a factory we get another, typically of lack as one from bit of ramping productivity factored as you're that you well. in So little to and

Operator

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

Thomas Deitrich

you, Thank Olivia.

We team. are the performance of progress pleased certainly with and our the

is strategy see to about play and excited we the the points in where proof starting heading. You're future are the the market and out,

So look for today. forward to updating everyone next joining quarter. you Thank

Operator

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

may You now disconnect.

Itron (ITRI) 31 Oct 242024 Q3 Earnings call transcript