ITRI - Earnings call transcript Q4 2024

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Operator

Good day, and thank you for standing by. Welcome to Itron's Fourth 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. ahead. go Please

Paul Vincent

Officer, welcome outlook. Call. and Officer; Fourth XXXX general Chief Quarter Joan results fourth Good provide and Deitrich, to Itron's Conference a Financial and President Tom Senior update Executive review President Earnings Itron's Hooper, quarter and morning, business Vice Itron's will and and Chief

presentation and release details related a to Earlier today, press is a call includes issued that information. release announcing today's conference Relations the also on call webcast through the company its replay Accompanying results. under webcast This corporate our available the tab. the is and Investor website

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

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

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

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

Thomas Deitrich

well fourth Paul. call. morning, producing financial Outcomes. the year our Solutions above segments during results full Network results you and joining capped record and team everyone, Good demonstrating you, and thank for for growth quarter, of our strategic our These progress. and Thank executed The Itron revenue expectations

the for $X.XX, on of of of $XXX include highlights flow fourth share quarter Financial X free per $XX and cash of detailed adjusted Slide non-GAAP are million, earnings $XX revenue million, million. EBITDA

Turning X. to Slide

$X.X opportunities of now quarter of adoption Beyond the related over XX a financial to new XX.X grid resiliency, by fourth results, Intelligence continued driven million grid stable automation, includes platform, Grid our billion, Market a healthy with which endpoints billion. pipeline intelligence bookings of remains shipped $X.X capacity, distributed safety licensed. highlights performance million and and applications include quarterly of record producing the the for demand level backlog record total

Turning to book-to-bill record The our year year-end bookings backlog X. XXXX billion XXXX to a of Slide X.XX. full contributed ratio of and $X.X

Outcomes Edge XX backlog Intelligence and associated content elements. million dominated our and platform endpoints including Grid by Solutions Network over Our is from segments, platform

the distributed Itron on-demand during XXX,XXX The technologies, Edge Potomac enabling with supported on smart Itron and demand of capacity. next the Power the intelligence their the QX, utilize area goals In fourth Itron's including to to system thermostats an generation capability. D.C. laying devices quarter. Washington, the program have continued periods. providing for load demand relationship Pepco's most Itron, reduce Pepco Electric's expansion company Selected business multiyear nearly flexible of and program. and non-wires path support control, has participant has control that the load direct extended during Grid response heavy Potomac impactful bookings an highlight our response demand offer and participants efficient creating Electric residential partnered serving load enrolled

in active Itron's one grid. to who the positioning through our connected metrology AMI an gas have and transition provides the their on agreement the technology, of Additionally, for future customers AMR signed working we various been of QX stages with Intelis longest-standing which

will maximize for solution Grid help safety and customers. Intelligence Edge this Our customer their

delighted We to a continue the benefits. gas that for innovation industry leading partner large the by to delivers are be trusted true with utilities

X:X The anticipate challenges opportunities. to result, intensifying. efficiency and ratio a to our pipeline is for a book-to-bill confront reliability, of customers related safety, at we as contributing strong of This And are resiliency least XXXX. our

the and outlook Now our for fourth to for quarter over Joan our I'll to provide XXXX. as year call as turn full well details results

Joan Hooper

XXXX Itron's fourth I'll Slide Tom. the for and to quarter. year turn XXXX X for GAAP Please year discussing Thank our of summary quarter full first before for results. and review results consolidated a you, full financial outlook the

$XX due GAAP Fourth efficiencies. Gross $XXX strong than million year-over-year. of of quarter higher both demand increased operational execution. margin was X% to revenue and mix was and product year share diluted by net $X.XX revenue The per by operational customer compared year. per XX basis higher levels improvement driven tax expense. higher last points driven XX.X% income, in prior million was $X.XX higher by operating $XX offset partially income of or of to interest The diluted million the or share and

income million $XX $X.XX year-over-year $XX quarter operating increased Regarding income. net per The income of was $X.XX Slide and or versus metrics a year Adjusted increased million non-GAAP $XX on Non-GAAP ago. year-over-year. year QX million X. million of million growth share ago. $XX Free operational EBITDA XX% XX%. the cash for reflects improvement a interest flow diluted in Non-GAAP versus earnings strong was $XX increased

segment Year-over-year strong year-over-year, Device driven revenue in due operational sales. Solutions primarily to revenue project X% basis, legacy XX% increased electric meter on year-over-year, services. decreased X% deployments new by currency revenue Network constant is by driven licenses an on execution. and Solutions revenue a by primarily decline expected grew grew software increased Slide X. Outcomes business growth and

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

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

basis basis margin XX product gross Turning to I'll points Solutions up Outcomes operating record compared revenue points margin basis was increased was to XX.X% year-over-year XX segment operating $XX was due expenses. XX.X% due was to and product margin million, Gross expenses. to margin margin basis points to Device XX.X%. declined revenue basis operating revenue million due of and margin margin and the operating and million increased Gross points a XX%. higher-margin increased mix results year-over-year was mix, XX XXX and down to Slides a margin $XXX operating XXX Gross gross XX $XXX basis margin due Solutions up operating XX% with of was lower year-over-year, QX margin margin points revenue but XX, with was went XX.X%. points review year. operating prior due mix. gross of XXX through operating margin of Network with

records. Edge of of in $X.XX XXXX. versus and The Grid not several XXXX include reflecting a of revenue, very results For we customer million our conversion strong which of full solid did $XXX increased XXXX, results, XXXX occur grew of turn platform year XXXX, constrained operational Intelligence XX. recap new the adoption demand, and previously XX% set performance. will please to in was financial Revenue strong performance billion Slide

million efficiencies. segments or operational Itron a and was $X.XX $X.XX product Solutions of record earnings of both of new higher-margin Network compares a per in with margin XX.X% new new XXXX. basis revenue Non-GAAP million diluted Adjusted to was record record XXXX. or XX.X% Our a share record XX.X% at due in for $XXX was and revenue, up also compares mix delivered to Gross annual year-over-year XXXX. XXX Outcomes $XXX was in and points and EBITDA which

million record the flow achieved of the operational to X% increase $XX revenue free for was and prior to The X% Finally, compared higher $XXX million earnings a due interest company or in of year-over-year or income. revenue cash primarily new year. of

debt turn fourth and $X.XXX quarter. Total to was of billion review Now XX, please the the Slide million. and at debt debt liquidity $XXX I'll net was end

As billion. cash of was net and equivalents December and leverage X.Xx, XX, were $X.XX

our Slide to current for financial year XXXX turn outlook. full XX Please

bookings. First, pleased of quite was of bookings higher we than represented our XXXX over $X.X comment bookings We let total billion, XX% with were expected. the QX which on the and me total year

will we discussed into the back-end and As few the beyond translate calls, our time has typical to bookings for loaded revenue. XXXX revenue the factored last bookings XXXX the of during been revenue XXXX. this timing to new nature the bookings between means outlook current most frame And of

XXXX the to catch-up year-over-year to midpoint, to within a We million of approximately be $XXX But billion. when the growth. is normalizing anticipate flat revenue revenue, $X.X X%. represents year-over-year At this $X.X XXXX exclude the growth of billion range

At non-GAAP currently normalizing approximately mix XXXX of anticipate EPS outlook tax of to of fluctuate this and timing range growth year. $X.XX expect XX% settlements. We X%. tax assumes rates earnings for based EPS rate of effective the year-over-year XXXX the years, diluted $X.XX for tax XX% the range midpoint fall jurisdictional full on of to and a after the EPS to per Quarterly share. within could rate both an This we

updates fluid, The that obviously and environment, trade trade will assume the including policies. any our market our necessary note assumptions change call. on this is QX during to stable no a Please XXXX provide we very situation

a increase XX% Now to EPS $XXX for X% rate. the please $XXX within year-over-year a first tax to non-GAAP turn quarter anticipate outlook. growth the million, range share, the range normalizing after midpoint first QX We Slide $X.XX to be revenue anticipate which approximately is of to diluted million to our within for midpoint. quarter be at of a $X.XX year-over-year We per XX at

good flow increased revenue XXXX and expansion results Our free XXXX demonstrated our cash growth, targets progress toward financial margin for generation.

growth revenue we Investor efficiency in We growth. pursuit last cash XXXX, remain our March's discussed confident XXXX targets rate profitability on the continued of and remain at in normalize focused Day. during flow While will

call Tom. Now I'll back turn to the

Thomas Deitrich

Thank you, Joan.

of another conclude high to at executed teams and solid the organization results year. Our the a level across delivered quarter

goals, who related myriad to bookings success achieved flow free and as energy by These addition our ensuring be customers to grew. new only milestones the strategic challenges records revenue In of achieved, management progress of margins resources. can which and our water represent we cash a and face the being of several towards expanded important

built resilient continued have positioned Itron at are team success. and a and well for We experienced

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

Operator

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

Noah Kaye

into start cash us performance flow Well, a in maybe with on environment. demand cash like 'XX I for over first, give cash can here. flow get in strong kind conversion? maybe of some incremental sheet improvement bit 'XX, the generation sitting But free broad about the Joan, to have balance But cash, net got the attractive I'd to indications after leverage, here. factors. thinking some you're of I as free well just capital billion of here what really there's then on assume to where given $X you you're

talk M&A the in in to about pipeline, the term, any a billion what little cash? of you with M&A to $X bit and over near Just do us absence of plan

Joan Hooper

could and about Yes, for we're looking Tom then I'll take the M&A. at again first one, when talk

fall yes, expect we continued free flow XXXX. improvement go I through to from So XXXX and improvement would as continued cash

percent XX% if that that to for targets was revenue for cash towards talked about XXXX. to we Day, up about go Investor So free XXXX, of and XX% In continue for X.X%. you would I flow. the get recall, us expect to

I a good of are comments for bit of terms cash bonus payments, for whatever as the tax free revenue. of certain flow seasonality a that to But expect quarter-to-quarter. either whole in little increase or increase and So year my there's or percentage

on currently question is contributing cash. the Great EPS. about lot sitting It of a to actually

sit for at on But where a gave have. look on we're it's nice was EPS, the We're more above looking interest the not cash. if not interest we are we income because consensus really the you that and So cash rates issue guidance bank. to that's of of an obviously, quite we earning

So pipeline. about maybe, Tom, just talk our

Thomas Deitrich

to perspective, types technology. at can areas, offer planning active forward. various tend very be the we types customers Sure. all we remain outcomes that way Grid there. out from rounding operational the to are really be out that we at in M&A generally Intelligence our tend portfolio targets interested The of to of the They an things From looking in

and So be very want a will scalable we've that's sure the side on a that looking similar We types really contribute disciplined is of truly technology in perspective. been to we're make that just things be to -- from and really, a move something at. financial have that position

Noah Kaye

We're good demand shipped to back million starting operating got I specifically you've here to your think the in DI to some outcomes. But the XX leverage the environment Tom, go segment. see shift comments, field. to and a endpoints in just

said roughly applications that XX and I applications of million endpoint, still licensed revenue in lot the the suggests kind with you endpoints will, runway. of million has rate backlog. think XX of of kind another That awful you recurring if an adoption per

to a talk us bit over it? revenue year see you of recurring outcomes So see what little or the what for X? next portion about growth specifically, the kind And for of you

Thomas Deitrich

Outcomes about. a something That fastest-growing year-over-year basis. on our we to The 'XX be business business should 'XX good feel for is that

field for create Grid runway on applications. the underlying pointed out will, the Networking things A platform. the Intelligence Outcomes Edge in with terms that happening of the indeed if in expansion correctly growth of side of we You to out greenfield, that the lot you need is technologies, left to get

endpoint, that just you over one. applications, where apps did running math, the in absolutely XX per a many not you're If XX quick over a touch end world million see field, we million points

continue our that the have. customers choices to application we So expand

can continue choice. bigger post see parties We we a writing third to to store our application which enterprise applications, create on

started, the to there's be lot think getting So more is done. I really and ecosystem just a

capability resiliency, people analysis the utilities increase bolts It applications connectivity understanding about, we an capacity safety. doing It is and with nuts actually it's definitely what through assets to electrical is of happening. reliability, nonwires What would to what's location be these awareness. carrying where understanding are it's see it's need of is and

and you challenged a customers, out lot big So take our a for and competition a and nicely resolve on to creates using are accrues with, customers to return good technology, bite that of really the barrier high which things our software-only it can a investment of us.

licensing a types quarter-to-quarter, in where depending noisy about having deals level below ultimately that XX% that individual little to bit licensing content space revenue of QX quarter the you some think as XX% going What we still did and was onetime recurring is things of sort. that It's be in land. have definitely saw inside We a that fourth outcome of on number we to number.

for continue land ahead. the is XX% lumpiness revenue grow. expect a So little we outcome us think bit in to But over years to that the of as recurring space I the right place

Operator

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

Ben Kallo

Just you Noah a then electricity following on up just rates have if kind utility about on America there, in, tie there's increased North you deals? big region, talk maybe just commissions the from Could kind public And if by demand have of I follow-up. demand could pushback so any And of and just environment. much? because just then

Thomas Deitrich

Sure.

safety that strong So capacity quarters, pipeline resiliency automation. to the so very prior start customers with It commented and opportunities. of increases, in invest need remains as in the I've

has funnel better basis. never opportunity been global So the on a

those global Australia remained places continues Asia to view. America and On globe are bit market certain a above the the and continue being forever. 'XX. that basis, in strong. of cautious the We're there lead water approach probably expect remain North say, bit list. Europe, very we at in on in top That pack, would a ] its the opportunities is New [ which as Pacific, little would to also I clearly probably Zealand definitely Europe punched more has a of there doesn't weight taking flat. a around

flows and overall. and in of a revenue the a is as the we'll backlog turns So how watch business terms of bit short-term it that bookings through that more

characterize So would that's it. how I

front. On the big deal

there deals are and large are there deals. small always, As

over Our deals more than bookings in customers. well it individual XXX quarter had fourth XXX with

outcomes it market a So we still on. and XX% overall. plus wide is very that It's to operate swap continue networks

So to that to business or that do targeting to our the rather we're grow parts of grow starting so. continue

very still environment, constructive. Relative regulatory to it's the

and see are hoping. a absolutely a rates basis. for way is global think longer perhaps the on people about bit but as clearly, than proven it, it are higher to utility deals, constructive a decent environment So we very interest still a little commissions Higher were

Ben Kallo

competitors assume some [ of then there's the I don't water if made -- know back applications competitive word to for and just be on at a business turnover your competitive maybe is to I there's word competitive the ], comment Landis have you And being Could about you written see that little And that, just circling then about [indiscernible] sale, environment, know use, a that. the you you've environment? I about guys kind just but don't network. how more depth? in talk a

Thomas Deitrich

I So close into in downloadable agents today. our I applications the field in anywhere we language, million Grid competition think have distributed the XX pretty substantial is lead Edge endpoints in the already certainly Intelligence to a think don't and intelligence, endpoints. the landed

clearly of want innovate competitors are make about game to and these there respect we sure to So our but in capabilities of we we'll, overall. play competition, are course, the and that marketplace types talking the continue

So I for already applications pretty think is investors nice for of for good infrastructure incremental in good and and for and cases us when landed is the us our top good scenario it people on that overall. a add And field. customers that's use that our

competitive uncertainty their is business There is in changes a in to model future. the lot say, ways making of, to find the more various everyone marketplace as competition looking I would with in be

competition grow our our So can lot a and and time spending help thinking more we faster. business about what time about customers less do to

Operator

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

Jeffrey Osborne

Tom, [indiscernible] of expect the 'XX, a above spread Just Would similar throughout back-end on the year? or a you the couple even But more year a out of on nature rapid-fire. bit the quick X. for loaded bookings book-to-bill ones,

Thomas Deitrich

it say quarter-to-quarter things would what always would like. look to difficult I that Yes. as predict is to

'XX, right see be I it today. So of of hockey forecast perfectly what like the that to the in rich definitely now, wouldn't linear sense year X:X for we big lot wouldn't stick had necessarily a expect opportunities a I But either. based have makes and we but on visibility still quarter-to-quarter pipeline

Jeffrey Osborne

Mexico. but comes articulate, chain that, Got you of tariffs anything some it, that there may tariff can the supply closures, we that on a about manufacturing I be to folks? should region. And in you notable believe sure think just there, you is steel on don't there Mexico have then I XX% copper, from wasn't any it. like impact given How

Thomas Deitrich

Yes.

on it's think depend it components as are Mexico. definitely what operating coming fair in amount going to I like. the from looks details of to with We a

is to for raw isn't the meaningful amount something we market any out of So coming sense us. that that We have watch on. meaningful have in. import in for China details metals a a don't

like So in those to might that as quarters But important. are aren't the we look mindful ahead. necessarily Mexico, what

in is That plan supply In we're just inventory make do again, terms on supply one to of certainly chain a our be in and a we -- there sure off chain again. last carry much make I would we're as position to a the could of to we is sorry, give try event tariffs flexibility make possibility comment cognizant more sure us bit accordingly. that

Jeffrey Osborne

that jurisdiction not juncture more on Got from it. yet? you quick in That's follow-up just at that that started permanent any a that or intermediate topic. that suppliers, they're at not qualification event Have not alternative of helpful. point, the And maybe

Thomas Deitrich

make the very and a meaningful a to more engineering, solution. the I environment. It's a other part really program takes around would the think, isn't investments way current perfect I a have multi-sourcing uncertain, hard bit do it's one or We create globe. It large just but It in of it world. the strong Yes. solution, say, to is,

Jeffrey Osborne

services I if is curious, aren't Got defined relates relates you XX% there I'm competitors type is including I makes in, well as it. any that revenue. outcomes, type page us being peers? excluding you is But on Networks squeeze maybe it Services. Outcomes, certainly last one as that or excluding And you including or maybe talk different services highlighting percentage about how the could a one know they it people just same are those are similar and and describe when as the folks had, you remind I of services relative pages just Network could to both as be parties their focus to your or of to reporting? managed that it metrics on of maybe may you or applications

Thomas Deitrich

Yes.

sure and For our on facts clear numbers make it. and that me figures, let I'm

So quarter-to-quarter, of kind in P&L. is QX of software bookings of services probably and XX% Networks in XX% a so the Outcomes, the and as of is software revenue can the of number. small a software in and -- that's and Where overall and total The terms total our there run the to it backlog, vary that in that we Outcomes, plus but new slice majority is percentage XX% are but oftentimes of Networks XX% in services. is is indeed services

services Software revenue, is overall. and portion managed services of which obviously, a and Outcomes, have both that

I what clear differences So different classifies just terms don't that do for for there's on I is probably I believe areas. us. them. know of in can what accounting in am I do the it But competition some

Operator

Sutton the BNP Paribas. of Our next line from question Moses with coming

Unknown Analyst

think a business just should to near-term Sutton. into base Moses Outcomes [indiscernible] As you is How continues quarter on to as the continue lumpiness to quarter. 'XX closer this picture your we will how one-off get on trying margins to Congrats ramp? and on recurring go moves, about targets, pace. can for as This impact for a but builds servicing the 'XX

Joan Hooper

kind the the about Yes. you're certainly talked I full the quarter-to-quarter. about, Outcomes variability have nature from would increase of versus I expect to going margins we've 'XX. gross But year, full think to the year subscale If given

QX, percent. get allowed would gross -- year, onetime improve So again, -- expect XX%. wouldn't I continue go revenue to to for we to It's of I to off which be that full baseline lumpy. Outcomes us to don't I margin new license think we their not the the did have the I caution a But in lot of. that's to continue you

Operator

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

Martin Malloy

first Congratulations on to I question. the wanted a strong year ask you put together.

If maybe could ABB those GE us ] you companies with and got partnerships progressing? an Vernova on you've update and the how give like [ are

Thomas Deitrich

pilots Sure. customers are in stage I They today. is, with them, the call that will

customer think a about make to want both starting technology. to to be wired properly really from to partners So the sure how the use lead the We platforms help to the got of customer. together we've able

yet in generating not where part revenue is it a strong So stage through on interest the customers. P&L, certainly the but of

we behind helpful much to help The of continue the very couple is definitely and partnerships continue are faster ways this customer just to Mobility and of technology mind as feedback we a new thesis closely GE strong can House, is question. partnerships. our customers or that, work them of with one I Schneider, those absorb we Vernova, Microsoft, answer various your do [indiscernible] that to get top that

Martin Malloy

release wanted press to December. the I about from LUMA follow-up question. then ask And Okay.

If terms give what's more on you maybe the can in going of there us installation? of timing any color backlog,

Thomas Deitrich

Very to service platform. It PREPA is distribution the Intelligence support pleased reliability Sure. full on of Grid an grid. to important improve their is and resiliency of the electrical our modernization That the LUMA, island. the and Edge project

for it's got and in So it. Outcomes strong both content Networks

really getting is project started. just The

is revenue the of most XXXX. is a think I rather for the ahead. years immediately big than that in something pop So

X-year time to will that X- roll So out and overall, it think frame. probably project a it in as typical of

Operator

Capital from coming Moore ROTH of line question with Partners. Chip the next Our

Chip Moore

to ask one wanted just outlook XXXX. I on the for

the bookings the year. in back-end I some European think out you factored last You've And around business. water conservatism loaded meter called

maybe drive risks you Just think outlook biggest help you results. then to and better-than-expected think what us could about that the

Joan Hooper

Yes.

bit caution more I'd just look not Just flat at give you Again, year-over-year. a the to little to color.

normalize do to really revenue. catch-up You have 'XX the for

it X% So growth. gets about you

year-over-year. Within unusually bit. because I said, we're little suffering a being down to the strong probably water. with there are cautious And expect an Devices would certainly, our 'XX in as Tom Europe economies They had segments, be

million. to strong be very, Networks to catch-up. Networks, another I expect very because would That's indicated, the flat 'XX, low came And Tom growth really expect have the revenue to we in as $XXX of Outcomes that all year.

of the there's know lot a don't risk to line. I that top

As is policy. we the earnings mentioned trade haven't in we any new assumed outlook

that So biggest But environment gives really macro accordingly. risk a as if again, the that big update to would we'll the us extent be happens, probably the trade headwind.

Chip Moore

just follow-up targets. a on those And Joan. helpful, trajectory margins on and XXXX maybe Very

You last some end year. at of actions, cost just I think, completed the

Just kind of path. how revisit and think you those about that

Joan Hooper

Yes. in Again, at I did good we was our I get X% to relative line mean and 'XX to X% actuals, a off place the it we're it top think trajectory time the XXXX. to to X% revenue CAGR for I from like X% guidance need if range just the just strong get to 'XX 'XX, 'XX. to really 'XX. and the 'XX something Well, you for to update gave you to

in So we're my the hitting line targets. No well of top issues our way. on view

profile really and doing free increase on I good, cash hitting flow gross think, for the we're generation. Also, margin

targets not year. worried into too about well. an those hitting everybody not to caution earlier to accelerate try as them So I

to continue us see Let how things evolve.

factories aggregate, savings, does -- cost a X million of that the there 'XX shut And In 'XX. not still has XXXX. of is did down we then of maybe tail mentioned, over you end have at that's $XX backlog As indexation. the

pathway the So on that's us the year-over-year maybe towards to way. mentioned a headwind other question, get earlier targets. But gross margin 'XX going as the and in expect I'd I improve an

Operator

with from our And next [indiscernible] Canaccord question line the Genuity. coming

Unknown Analyst

Moeller. You have for Andrew on Austin

approval appears ended given in the bookings delays Just quarters, record first mind it this and $X.X with in mentioned quarter. bookings the regulatory the quarterly here, in previous process billion the

maybe through in terms the the second year? these mentioned In half of revenue deals I think recognition you the flowing from do contracts, P&L of see you these the XXXX.

color So if you appreciate I'd some could there, it. provide

Joan Hooper

Yes.

what our X Just the let prepared revenue typical I to to in starting said XX bookings reiterate kind months. of comments me the is is

I XX%, QX. in think, end, our high of the came bookings annual why that's So XXXX

as we so been last the didn't 'XX. revenue into quarters, we've of signaling several And much for expect to in come that

there's months getting then terms of start a a in started. X of revenue to down. kind time And time project, the frame is sort typically kind then and goes of So over of increases then that XX and within

revenue just took X% the to the in as look you all I into that it's mentioned, So we to at XXXX off the if X% get 'XX, -- CAGR account 'XX required guidance. 'XX. to targets the of And from

growth expect 'XX. and we accelerate to in 'XX So again

Unknown Analyst

a it. And just follow-up. Got

at in approval of in that $X.X over that through again, quarter it, the, call process looking Just past the bookings removing regulatory billion the going this $X couple quarters. were billion bookings

in how expected did XXXX? the Or like For thinking should business the quarter in $XXX bookings. could million this that? we be about that per year, be Is cadence

Thomas Deitrich

The little Yes. lumpy be bookings a will quarter-to-quarter. bit

to difficult it's us So happen. as it the when discipline we given down very something to quarter will exact to an call use bookings for

a but So to I would much of would hockey quarter-to-quarter, of as stick, little until brace not book expect QX you waiting quite everything for a it I be lumpiness to this bit year.

kind But of So the expect flatter total, I or a would greater be profile. X:X bit of it in book-to-bill to a little for year.

bookings can math to So X.X% be X.X% the on there. and the of ought if from on you range, what kind was really our outlook to revenue go do

Unknown Analyst

more Got could in. if just I it. And squeeze one

the California demand Edge in QX in endpoints 'XX, looking any in the Grid for of has wildfires? Intelligence uptick there aftermath like Just in at been

Thomas Deitrich

in floods to impacts, or technology our wildfire of tragic everybody or out the customers matter. situation, dealing fires it really sorts Certainly, it's absolutely go hearts we hurricanes, with helpful whether our is been The affected that. is provide a California and all that's doesn't very by environmental that

and what the to in of we're visibility working coast California. in better on PG&E widely. the down and wildfire California, grid, including clearly edge deploy I the at to areas got country, have out customers across with our quite room got A You've up honestly the mitigation wildfire originally grow that And technology in developed of prone mind. think to Northern we've lot with was our technology more that's

Operator

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

Scott Graham

in that then operating maybe I'll that it spend Is have that had X were December you actually the or just to little keep expenses about? these higher spend money better-than-expected segments. X a I kind X X. was of in questions. you maybe some saw quarter underway of a and off? that bit The some that What

Joan Hooper

of our the are the our Not year timing go segments our are throughout investments they sometimes team outside some or year. monitor services really. both making Again, it's through and the the and of corporate whether -- can we expenses

for annual focus And I XX% of of been more we've across revenue, company, spending if XX% range the of right is up So to the we the level targeting. within that we look ended segments. that on at XX.X% which

Scott Graham

Yes.

there. Are in low way ahead. product? utilities AI. direct this electric spending them simply indirect you obviously, their of so And it, center industrial DeepSeek now, lot talking talk let's You The utilities obviously, of more ] about the environment will. of years news back not burning, hearing other markets. light data [ base needs some where, things hearing wide them, have There's service if need The is of capital Obviously, in call you with your you the back question rolling such out in you power maybe many customers? about to I'm been a a or but are months cooler the that anything companies call ago, about AI, roll stocks, them right some of about serve the from kind cheaper speculation X.X

Thomas Deitrich

Not at no. all,

certainly So It's -- is also XXXX, I multiple very but years. by data use amount is poster centers, we at XX% of manufacturing. The driven is the XX% the here, of AI the growth child you need by trends strong driven that it's as all. reshoring growth factors. driven in XXXX. noticed, more a direction by any That seen more That by amount over trend. by We haven't as next just if electricity dramatic of electricity

and say, well change. So and no alive would I

and much Utilities with deal to keep up it. find demand to the out increase struggling are very a way with

So and it's long-term takes quarter-to-quarter ebb a trajectory time. and flow, infrastructure building a long

and So expect quarters and and years change I that the alive ahead. to well, don't in

Operator

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

Kashy Harrison

the XXXX in momentum. on results Congrats the commercial

suggest there market XX-month the year-over-year, was it, guiding call to 'XX you would more 'XX? than on guidance. ship if lower the with have what down, to in is that, The was my some projects expect that what's is you us book flat question Or you're backlog play? maybe maybe a that you're unpack revenues wondering could help at XX-ish revs, but percent other it and year? perhaps So first seeing you drives and factor the in XX-month just that backlog what you behind flat that can I this gives confidence

Joan Hooper

I was going a to of say, quite bit have we visibility customers. by

very quarter So which not in what mentioned, much months. is to is I month bookings are they're of XX back-end the revenue lower for loaded of we is again, the part compared in and of the XX next we the expecting the reason bookings, the so had

months they're the in post backlog. So piece therefore, of the XX

of the the So yes, element understanding outlook of we terms the ship some pipeline we're of of is with kind the projects. seeing that fiscal gave and timing confident there current and year. book But in in

Thomas Deitrich

Yes. think you I important that look revenue. And also the it's catch-up at

backlog compared XXXX, we to December million XX, that was so by where today. So $XXX higher stand XX-month or

from was little to So a QX backlog that. there's bit up of slightly XX-month QX.

and our Joan see So note what about exactly things is the how out. visibility customers that rolling talked we we

That XX-month customers deployment much in very frame. of forecasting terms are based project their on backlog is also what time

move So the down, and their how in progressing as profiles installation phase well. it are can through up depending projects development and on

Kashy Harrison

there. business commentary little. a on I it. a if -- maybe Do know Got -- us above because won up the Tom, if range. think I in it front, that So more very And build wide with the you the you book-to-bill with a the that on can last an the help year-over-year then Wondering that bookings help pertains indicated basis you the just 'XX? could And could absolute refine $X.X than book-to-bill the or you X you is us X. 'XX. you billion in on that I to help bookings then be appreciate as all year --

of also share talk Just is Maybe how market that gains? growth if rates, you that about versus be helpful. market could would curious win much

Thomas Deitrich

Sure.

an It as today. give can and you that X:X beyond still we good is cycles things of regulatory predict about exact or as estimate point. greater book-to-bill So becomes very to difficult

number [ is bookings sense to if our would X X be. X where So of that you gives on ], the X outlook revenue some for

So this to at bookings point. a don't year-over-year hazard guess want I of

look year, the what through progress pace like. will become of it much more to we wins the clear As really would as

and On ratios, very is at of nice for better definitely visibility for control rate see strong win-loss of of infrastructure need offerings, the for edge the agile portfolio our the pipeline certainly we the out of the share fueling in notion win of grid, gains a strong us. and take-up the space, a opportunities need and electricity

the the So electricity, I little there's space, very think in of fueled in and the the growth the shift portfolio the -- a gas certainly bit the but in by reflective share strength of in of probably marketplace. there,

Kashy Harrison

more could I That's helpful. sneak maybe If one just in.

Just on that over a natural inventory you Understanding I for, year now. a that trade. a think, on been have question buffer you've working

to us bit about So I'm that how of us a your risk on to give gross you from then you gives would can quickly pass Mexico just can help you cushion. little And that any there But think tariffs sensitivities any curious, customers? are margins? that

Thomas Deitrich

Yes.

in what customers On to responsible both we business directions. of the do our and want clearly, notion customers, pricing people we and be hope with

very on overall. much ability to and it specifics pass the patterns the on the fact depends So costs,

of details the absence So may regime it's tariff real in forecast like. any difficult what look to of the

overall. it's grid based pace timing and changes that resiliency policy of What but reliability, change and their the very certainly exists, capital-constrained is I ultimately I in would in say on world that the it a place. that It customers need projects clear destination performance, trade that could to and the the their don't improve think alter doesn't

for strong in administration support reliability. grid got and We've resiliency the

And something heard for important that, I resiliency ] the is is that's country testimony from grid strategy. of for important that reshoring You that his a Wright think larger Secretary and [ confirmation during fundamentally important.

Operator

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

Thomas Deitrich

Thank everyone Thanks. you today. QX. all for Until We after joining forward to updating then. look our call

Operator

This now concludes participating, all for today's conference you and call. disconnect. you Thank may

Itron (ITRI) 25 Feb 252024 Q4 Earnings call transcript