GNSS - Earnings call transcript Q4 2021

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Operator

Good day, ladies and gentlemen, and welcome to the Genasys Inc. Fiscal Year 2021 Conference Call. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, Kim Rogers, from Hayden IR. Ma'am, the floor is yours.

Kim Rogers

Thank you. to Inc. welcome and afternoon, the Genasys Good forth call. fiscal year results conference XXXX financial quarter and Rogers Hayden Kim I'm with for Relations Genasys. firm IR, the Investor Richard and on Chief Officer. me the today Genasys With call Executive Klahn, Dennis are Officer; Chief Financial from Danforth,

this will The call, statements risk forward-looking of that differ on information are management projections section than potential those the XXXX. from company's outlook results or management plans, involve based certain expectations described regarding XX-K for perform the and forward Other factors except future We may the update might financial today. to can as intent During fiscal differences forward-looking that company's on looking in risk year otherwise expectations, in statements make any and today's of risks factor statements, the forward-looking explicitly and as be call company's such September stated. obligation and facts statements, these in disclaim XX, the only ended uncertainties. historical of found cause materially other form made uncertainties specifically statements

the the we will release investors that provide revenue of We non-GAAP bookings and and months. order the which orders a XX measures total metrics, value is of scheduled helpful of press and the that purchase timing period, adjusted to metrics operational Bookings in orders measure GAAP use market of an performance close EBITDA to backlog the these received at discuss support regardless are of leading dollar metric planning. backlog adjusted is purchase the the given EBITDA, evaluating backlog, in and of related issued a executed information future please, ship to financial next including production to internal the to recognition, the of table with bookings customer in reconciliation revenues today. respect operational indicators We measures company's also believe for company metrics, consider financial by

in replay go approximately website. a Finally, pleasure please available investor the through Chief At be Danforth, page Richard. to to our it's turn over hours relations four Richard Officer, time, ahead, Executive my this will of this the call Genesis call on

Richard Danforth

and XXXX of performance emerging our as combined Fiscal was of Kim service for in welcome, level you, growth a a to Thank significant everybody. year position solid business. a with investment future us software

year growth Our continuing total fiscal From $XX year by were revenue quarter $X.X quarter XXXX first fourth bookings, years. to bringing prior backlog the over fourth Fiscal of fiscal over any $XX million full The activities. Backlog revenue four million which these our year our record bookings to record another a total. provided $XX XXX%. five to that last grew impressive grew fiscal $XX.X cash our month have positive $XX software globally. million million. bookings year support in generated by fiscal Singapore sales and by development opened offices operating and this $X.X company Over we including expanded have This as million Dubai grew software is and given posted year. as years, cash, team positive and X% X% million, last $XX we well performance quarter operating for track consistent in of million of we team revenue our fiscal exceeds

deliver of an in revenue. position revenue people over bookings, excellent XXXX. as provides end software work employees the offices worldwide, now acquisitions. for hard XX coverage Importantly, strong two communication backlog to record as year another In growth fiscal goals and Genasys At of these nearly cash Genasys generation business from XXXX, well seven year worldwide. and we million September, critical for XXX we our had software achieved supports global investments is our backlog and core

SaaS information a have for year to lifesaving XX million by launched and Mexico, XXXX. over the positive XX SaaS the In States, the and providing people. Genasys Canada the awards We was past reaction fiscal months, as our announced solutions seen platform contract evidence in resounding United

now opportunities industry's across about are Mobile that platform. has strategic wide global multiple our a and critical ahead. hardware Zonehaven investments, the excited range unified and created are industry We of communication and including of pursuing acquisitions With lies growth sectors software Genasys the the Amika only

model. SaaS we result, a pure towards hardware an evolving are from business As a increasingly

with expected As our and is continue that we upfront make key This to execute materially growth fiscal we will XXXX. resources revenue SaaS mix are [indiscernible] investments in software and our and SaaS shift expenses in over grow hardware Notification will Integrated our staffing year XX%. by to over a increase year investment strategy, operating businesses. highest acquisitions to for Mass catalyst contribution to SaaS anticipated bookings The

software our national continuing three warning with for we software Now our contracts. enterprise selling and Zonehaven Zonehaven, offer to Genasys management competitive have regional to and three a in this as with This and IMNS combination offering advantages standalone paths local, gives emergency solution, layer gem integrating platform, it in a securing solutions. as

finalize California IMNS combination year. the fiscal United Zonehaven other opportunities with is The IMNS elsewhere announce Additionally, large pipeline of filling projects are and business and expected evacuation States. from management our rapidly to this with in

outside to by business a the automaker software services contract expansion gaining global and momentum internationally. America, with expand SaaS facilities its to evidenced will Our of North Genasys is as our continue

County expected in and We to also award in expand here gem this in XXXX. California, Riverside is landed a

pipeline marketing, in sales, growing SaaS for of corporations in investments a XXXX. Our pipeline. building with contracts software development SaaS are Gem major and the other

support these offices personnel United the and in in announced geographic in counties, me, robust contracts sales investments Singapore pipeline. SaaS exist new Dubai and press experienced replaced gem that country -- targeted and with one adds here sales all, leaders the multiyear regions. presence were states and incumbent. expand entered in the opportunities and excuse of growing sales but of in in counties in The our and part We States departments, cities, a recently governments, five US with and internationally Additionally

We will and partnership climate this have events, focus East. in announced are and a opportunities countries traction government in these and in Africa partner regions crisis unrest civil to begun The region incidents. experienced security new related on to strategic see and Middle where distribution enterprise

expectation contract Our supports to EU warning wins team related Europe mandated for Genasys the in national emergency systems.

to While broadcasting deadline we has and mandated optimistic the opportunities, been To EU the June the than by low be year. been to awards the by due expect price. of date, progress extended remain now about dominated global have at We expected least cell a pandemic. one of XXXX slower

location RFPs communication are expected system broadcast, investments, strategic only With to based systems, in hardware based SMS public awards XXXX. including most created acquisitions Although date and has been have platform. critical industry's cell unified software the warning our Genasys

As result, an pure a business we're a towards SaaS increasingly from hardware evolving model.

we resources As investment and that This fiscal our revenue in to in expenses expected contribution execute SaaS to strategy, anticipate SaaS a year is our growth XX%. increase staffing over bookings grow with will higher mix our year shift operating to we key upfront will make investments by XXXX. materially year

strategic expect over to to expenses year million, XXXX, the million revenues. growth operating fiscal additional to spending by year year SaaS year We growth for $XX accelerate of $X increase of reflecting forecasted another revenue

for once our future focus execution global revenue our the increasing and a unique us can addresses in plan. our high model need to margin past to our Having achieve deliver on our SaaS of solutions, the for expansion, business, game we products Genasys on putting track growing grows, business growth. laid our margin and demand groundwork support SaaS are we the As investments frontloaded goals.

increasing is team base the increasing shareholder to over while that to rapidly committed Our of brings our our to continuing contribution I'll build call Dennis. strategy SaaS value. that, revenues, attractive margins recurring the on based hardware With higher customers of turn and

Dennis Klahn

UAE up period, increased Richard. engineering XX% lower related. million in XX.X% year the prior $X.X was the the $XX largely from to were million XXXX completed LRAD this million year to was plus opening increase a the Amika personnel, million the of due personnel from revenue Puerto XXXX largely the were up XX% in from fiscal was quarter period of fourth and fiscal resources profit GEM of same and at the the to to additional up The EU share primarily income quarter $X.XX decrease primarily and or were XX% $XXX,XXX of in opportunities, Gross you, a X% prior and deferred fourth profit mobile offices year. quarter was margin to for $X.X a for to Thank allowance XXXX and in Revenues income IMNS the few for Amika million expenses is Australia, compared the $X.X our to was in fiscal acquisitions the the million was Zonehaven professional ago, fiscal XXXX. down fiscal quarter Net from a increase million decrease percentage software was addition fiscal in valuation revenue revenue revenue growth sales services. from Gross Zonehaven with $X.X employees including $X and quarter, Operating per marketing XX%, fourth quarter. The a non-cash revenue the in XX% initiatives. software $XX.X amortization from was higher tax software revenue due quarter plus benefit Higher in fourth release XX%. tax recent against due portion assets. and software in up over Canadian of increase compared the Canada of communications million same the $X.X software expenses fourth prior additions XXXX due a Genasys sales the subsidiary, expense up of year year resulting support future Rico Singapore, and

$X.XX up was for software XX% prior of million tax year. year up non-cash increase in operating to Net new revenue compared revenues benefit with to fiscal continued in fiscal for per acquisitions This has $X.XX fiscal primarily margin our sales full GAAP growth well was For from fourth marketing The in offices, my amortization believe to were million decrease compared enhances to XXXX products. growth We well lower XX.X% area $XX.X to personnel of million was of expense to higher prior share XXXX adjusted Gross as $X.X market investment $X.X opportunities, expenses quarter $X.X to prior results. performance. due XXXX, understanding in from as sales of increase of plus of this increase completed fiscal Operating in and $XX was over and the in percentage Adjusted an EBITDA period, resulting XXXX. fiscal the support overall in year. year the share discussion diluted of in million in in million $X.X EBITDA XXXX. or diluted as results compared expenses was been with mentioned fiscal a reconciliation business sales support due non-GAAP million increase from largely the earnings XXXX. the in year X% a $XX.X from that income Gross $XXX,XXX XXXX as for the figures release. the were our fiscal and fiscal as profit the income fiscal due profit additional million XX.X% To future the personnel this in XXXX. or expenses and information our a included primarily visibility million with compared our the fiscal effect $XX.X $XX the per year, was comparisons full million

in XXXX Amika capital cash totaled balance compared compared on totaled with XX, Cash, million working strong. XXXX September prior equivalence We securities, acquisition Zonehaven The to XXXX, year. provide September Mobile the marketable context. Our you operating is activities asset use quarters and decrease additional with and purchase Working first fiscal million capital on $XX September generated primarily fiscal for XX, XX, to $X.X of XXXX. third remains some in million in million and year $XX.X cash due XXXX, $XX.X in respectively. of million to the $XX.X of sheet on the year the from to cash

of operating our profile. generated our Q&A that business strengthen With start to we'd past activities $XX software supporting years. from like and Q&A. in metric over the is the An has as all we million important session? health investments the that, underscores Our to Operator, could four open than cash more business you

Operator

first Our from comes Latimore. Please instructions] your question. Mike [Operator question state

Mike Latimore

of they year, they for the How here ramping, way So people, force guess. are kind product people software sales are how you've is productivity again, guidelines you productivity hired several along sales hitting your trending I

Richard Danforth

the force we they're We for of trending Zonehaven those It's developed principally Canada had We and platform as with US Zonehaven, folks trained up? on expect had the to a that and And sales and XXXX Gen the and all we sales to of Zonehaven. record SaaS our that for significantly grow beyond. as actively are We for out opportunities well pursuing in continue year Gen. saw bookings. a Zonehaven acquisition

Mike Latimore

of get a about timeline And say what months kind that? XX productivity to normal to is it the nine full

Richard Danforth

Mike, we fiscal year, COVID XXXX XXXX, at the think sales of I bunch were started Yeah, in successful midst fiscal adding a which whole this but the was of we folks.

first were again, fiscal a XXXX. went to in our opportunity they I number sell a the from was and think grow So standstill and it'll substantially XXXX from beyond. real to significant And

Dennis Klahn

a, think probably didn't our salesperson quarter additional fiscal on substantial until a I number, the second board come

Mike Latimore

sense. Makes

maybe same touched a countries sort the on level valuable SMOs broadcast of are any high sell some opposed with I more both as the based on guess, for You in time, leading that for in demand location little the EU, of at something the thoughts to why

Richard Danforth

speed part think I it. of was

bring gone and EU and broadcast broadcast. only that, wouldn't much of said, yet broadcast carriers, SMS more that requires the two network that would and integration overlook short live fiscal which you than too our expect much prevalent. location a fashion Some XXXX none the base put remarks, those in for into country RFPs in twos four that has but silver I I as can Mike, on depth be up both what cell and fact It's the or a include been announcements have and I

Mike Latimore

reasonable is percent for And there marketing it R&D the just is of well? a, as it. the on or in then there OpEx Got of large last year, forecasts

Richard Danforth

It both for sure. it's

Mike Latimore

Sort mixed evenly of or… there

Richard Danforth

take million. OpEx throughout OpEx $X a QX we've at you year if fiscal to up look increase Well, just seen, quarterly in 'XX was under about

fiscal in have lot selling we Therefore marketing through in full of year. 'XX. those didn't came costs year, a So throughout that's a and that the --

type over There's a So increased of of and adding for number year that 'XX. be forward would look roll folks will full for in be team a we to the there engineering lot probably to in going to that 'XX. fair, a fiscal

Mike Latimore

you. Thank Okay, excellent.

Operator

Coley question Our comes question. next [ph]. from Brian state Please your

UnidentifiedAnalyst

for for could software quarter could FY thanks the year in 'XX, bookings you of you and the maybe hard I'm question. like the for just and sense software about number guys, Hey what us were give that if between mix taking the what actual of talk for hardware, same curious number, any full if the was bookings.

have for can 'XX Just go so FY we to a of. number

Richard Danforth

made we've I that Brian, don't wrong. public me if I'm correct data think

Dennis Klahn

No, we have not.

UnidentifiedAnalyst

FY was that's here terms Is Got revenue today? something, still case? it. in That, fine. was you I XX% last for have just curious if software As exceed it total to the quarter, that may of that I expected that think revenue. 'XX, you of sit we mentioned

Richard Danforth

Yes.

UnidentifiedAnalyst

the and and of driver growth Got biggest in today, 'XX? it. Gen Zonehaven and curious, look pipeline FY be three seeing you do between as of opportunities I'm biggest will you And of then where at kind which the you're most the think traction most software those deals the to

Richard Danforth

in are been Gen. they relatively signed. Brian, It'll pure go opportunities contract clearly live once SA period short has a Those Zonehaven be and

based cell of or you you warning activity national If a, is to lengthy piece lengthy the service, can that. a the there's which at systems, look it SMS, emergency a be before broadcast time SaaS revenue be but professional a generating get what non-recurring location

and Gen I Zonehaven believe at SaaS So a that the given grow faster pace. that will

UnidentifiedAnalyst

growth just this 'XX, of thinking you'd be the revenue there there about expecting willing magnitude around quantification guys to That's record of helpful. provide the Okay. any time? then And kind that you and know, is you are FY total

Richard Danforth

of material issue. double shortage the parts we it'll of number, it's digit worldwide but, are think a this facing I kind be

We negative going But have to without manage stream. impact revenue that able on substantially. any lead times our have through been been up

million So of 'XX, that the me. for it's is million available year into So bit the excuse $XX not material when a Coming is XXXX just in fiscal it's a little a did revenue of we matter all available? $XX in with caution. of backlog last, puts it

you've in chain here should, be And seen that. would of further notwithstanding XXXX. it it should fiscal of any north issues, what So be north it supply

UnidentifiedAnalyst

Great. right. All it. helpful. Got I the today. appreciate time That's

Operator

your next Please Martin comes state Our from question. question Yang.

Martin Yang

question. Hi, my for afternoon. Thank good taking

catch So 'XX? Do for for your any you my expect first the question increase. up offices on fiscal is regional investments

Richard Danforth

team of customers. world to We are they expand still to hard would efforts. those as Yes, expect so sales we fully would pretty our we, and look assistance up we opportunity meet more lockdowns to the opened the have have are parts in provide out get haven't additional supporting sales yet. to the with But

Dennis Klahn

would shutting Middle a beginning down Europe locked opened. in is region the to a largely add should hardest that be the has countries APAC I nearly back two expect up been, region down notwithstanding pandemic in this more opened to in of locked you lot and and spike business has The The January, bit. I down month that and which that year slowly To a expect up region think I calendar facilitate some open open of here infection been has largely beginning rate. the next to years. for as region our again. East at the the has through in now APAC

Martin Yang

enterprise you. customers? you Thank municipalities if for customers are enterprise look the Gen able or from the any to And, stronger or coming are strength would you demand more you when and say the size Got it. demand know, see do accounting you either at the the the

Richard Danforth

on a see a here in size And recompete automobile to has three of in average And the strategy that the to America. get terrific it years, from was comes not up to half shown dollars board, that. but of example a whether our the on it that a large worked, our every, North or manufacturer enterprise testament hard a governments past the conviction strategy across and also year it's great billion a I was market that I Riverside so term, that. think depends this over

Martin Yang

Just a follow of that is there.

three concentrated any when up So a more the where of are think see for about years is a average renewal. year there you renewal that you contract cycle,

Richard Danforth

on That market more hasn't been all Zonehaven we're pace getting out every yet? and I more our and increasing much Gen in inquiries areas getting for think name's week. there an

Martin Yang

Thank much. Got you it. so

Operator

Okay.

comes from next your question. Woo. question Please Our state Ed

Ed Woo

$XX court. $X to on I the that million operating congratulations be this you up $XX will wanted year. Yeah, clarify and from to say million the just expense million

Richard Danforth

Yes.

at quarter of reflects $X if So Zonehaven, which just a look was that spending, full QX under million. you

it's there'll and believe million So annualizing the in that year. we $XX million more of dollars a be couple investment

Ed Woo

Great. Thank and on us touching you. components on information inflation any impact for possibly the your And answering will giving that. been margins? shortages any about then Has of there that thanks inventory your or impact on

Richard Danforth

We increase. seen prices have

We to price our will well. reflecting reflect our be up going changes cost as

paying So think the a yes, past seen pricing in it on gross we're I have we significant, was that our relevant impact year. marketplace. our a pressure on this don't margins

we've far and at through effort of Genasys. within here manage lots redesign been and So the it engineering organizations the operations able through to

Ed Woo

announced Just plus orders, is some question, cost you for leeway get delivery when these do years, a it clarify type of you or pricing? price several a set over of

Richard Danforth

of have cost we contract. almost plus No, never a kind

hardware, we delivery order time However, with is typically with our, years. our measured months deliver not of to in typically particularly from

took this bit five one be, That Software can years. for quite we year is past different. a

in that you It's that in cost of as what remarks. that to cost the service, the already Now, upfront service I is actuals. mentioned delivery the my know, develop

business don't so think our know or an much business. software So supply if of impact overall in any an SaaS I has chain inflation

Ed Woo

fiscal for and question. thanks Well, 'XX. guys my you Great. Wish good luck understanding

Richard Danforth

you. Thank

Operator

over That to was remarks. question. for you I'll turn final closing back our it

Richard Danforth

XXXX Thank contact are presentation be speaking Barclays conferences discuss your year. we results. On one-on-one to report the throughout a the meetings look Conference. Investor regularly week, the Imperial first book we X, meeting. at families behalf with to everyone at our next will when On Media We wish healthy you quarter forward season. your Security for Technology call. representative a holiday you these participating December today's December Telecom fiscal year, on you at again The and following and in XX. business participating Genasys, we Please conference a of firms at with in We happy, we in

Operator

your today's you. participation. Thank thank We for call. comes This conference you

disconnect life a may have You your and time great this at day.

Genasys (GNSS) 23 Nov 212021 Q4 Earnings call transcript