GNSS - Earnings call transcript Q1 2025

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

Operator

Good day, ladies and gentlemen, and welcome to the Genasys Inc. Fiscal First Quarter 2025 Conference Call. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, Brian Alger, SVP, Investor Relations and Corporate Development. Welcome, Brian, the floor is yours.

Brian Alger

Good afternoon. XXXX Results Fiscal Call. Genasys' to First Conference Quarter Welcome and SVP, for I Alger, Relations Corporate am Brian Investor Development Genasys. company's With me CEO; the our Richard are CFO. on the and call Dennis today Danforth, Klahn,

and forward-looking call, today's the expectations, these and The and management in certain make company's differ statements. future During the statements results projections performance financial described may will company's regarding plans, risks uncertainties. involve outlook materially forward-looking from

found in Factors disclaim facts, the cause be forward-looking and forward-looking as and XX, stated. of differences except uncertainties the other call are made of and fiscal September explicitly XX, for risks obligation Risk that this XXXX. February statements potential specifically management's the intent update company's to Other might based any on statements such ended XX-K or those expectations on section the Factors than can today, Form historical information We of statements XXXX. year

adjusted operational discuss also provide to will We to which investors we performance. with net evaluating helpful including non-GAAP backlog believe information respect measures and and adjusted company's loss, the metrics, EBITDA, financial bookings,

For release the reconciliation by the see in the company of press metrics, to today. adjusted table financial a GAAP at market close please of the issued EBITDA

that revenue We in metric timing recognition. the executed to measures backlog and period orders the support of related consider revenues dollar customer's an leading given metrics purchase operational bookings total and use regardless production is of these indicators future of internal planning. a a Bookings of value

the orders ship next received months. Backlog that is are in purchase a to measure XX of scheduled

X Investor page call this on replay the approximately a of be the website. will Relations available company's through Finally, hours in

turn my Genasy's this pleasure over Richard Officer, the at to Now Danforth. Richard? it's call time, Executive Chief to

Richard Danforth

everyone. and Thank you, welcome, Brian,

fiscal year's to a pleased is that are than prior quarter. report the good substantially start, off better to XXXX We

are am January's time week dangerous the enrolled of discussing in not get we creating some Los high humidity. and California. These that low second that experienced I extremely spend a to I event, during into uncommon Angeles very historic weather Genasy's Southern Before with quarter, fires aware sure fires national winds the want but all involvement the in news. combined made January, results of you of international County

Days issued before happen, notices communication and anything were and across the ready. a unprecedented and plethora were did different customers ignited across as various an by result, X agencies. occurred, however, services, than greater coordination weather was our country, a far requiring previously of of experienced. What fires amount anything we

the of first the Angeles work United together. the to fight Emergency part The but shift fires across and keep it Western streams What people technological the scale response wasn't scale as upon responders send stood to Los just mutual comprehensive a aid Southern a out was of across and advancements California unprecedented. fires, engagement States that from enabled of safe. beyond to the

very Unfortunately, County L.A. the Genasys Protect Lahaina uncommon. high ], all areas. purchase The to recall developing winds, from Paradise devastating lesson to [ are fast-moving prior We our by all wildfires communities tubs tragedies led and interface can from driven Solution. the and Genasys an urban fires those near devastating not learned images

What to is the on So and Los Angeles the images to are Lahaina. communities of County of Elan and is across Paradise, the Plan different the demonstrably the similar homes devastation Without of saved the L.A. Genasys partners properties lives Utilizing eerily life. timely of use evacuated safely through were Protect citizens. [indiscernible] Protect question, platform. of the thousands human successfully and its County Genasys hundreds toll

communicated continuous for events managers, over in time, communication [ that adverse responders were Los Angeles emergency with just fire As management. changes Genasys several XXX the we over ] state emergency sitting personnel county, site, weeks. Over side-by-side And lasted federal county-wide zone Throughout all were and were of days. X the with status event, on of country community. the the know, course

being hundreds customer Xx on standpoint, impacted in Genasys around Genasys experience processing the of capacity also X success At implemented that and most Protect in emergency the website the Genasys a active Lessons Service the number be more informed scaling development Genasys enable and information platform orders requests per the Not and magnitude million From with learned during from jumped country month. thousands protocols. accurate impacted fires proved continuously of the did resilient, than to out, XXX,XXX Genasys app point, Genasys extreme incredibly And of X month over families peak this drew traffic. managers and of up to get zones. were users of January residents, Genasys but only during the the ones of word and users the loved second. official

such the in from and team high-profile and and critical with industries firefighter Operational the It Genasys fire Recently the improving state, Fire performance is where chiefs Summit, the overstate [ of operations how Protect emerging EMS fire are event. join servicing of the proud partners impossible California a Technology goal at safety. across and of operations to we technology

platform the their County in the In of Residents responders the arrived risk, to first saving of Genasys confirmed Bernardo community an orders that from of We ago. X show the mission enables of time primary emergencies by presented and [ lives fast to unseen. ] changing minutes evacuation's at the after protecting Genasys first Protect logs to notifications and accuracy communication less a where received weeks the than software our and equates speed fire accomplish Diego warnings and provides account response for response rapidly X lives. incredibly able responders were the minute-by-minute San response. that

first the supporting received recently, Rico. the design was group the meaningful When in million. also spoke, we of approval Genasys third received in were project received the California customers with January, Southern of we And $X While last approximately headway we making in deposit have million second of dams. of we written a and on have had deposit Puerto $X we

and our hardware is groups. teams engineers the components installation X first of coordinate well of Procurement with various working to local on are the underway,

Importantly, completed the milestone provisioning first we generator. to major XX-kilowatt a of recently

for backlog will As first revenues in be the a Puerto our ARR. recorded year-on-year quarter. software results our reflect Rico quarter hardware largely result, second December improvement fiscal on The and

expenses in decrease improved expenses In margins profit of increase quarter, Importantly, we an $XXX,XXX. a both realized sequentially. in gross and $XXX,XXX gross of and operating the operating

business. see we Looking forward over year, fiscal continued in hardware both this balance to the our expect improvement and of software

the enforcement demand projects Rico international certainly LRAD rebound law our products traditional levels. to to drive greatest While pre-COVID impact, going are towards Puerto for the continues

is public and significantly Additionally, the of acoustics value and is critical becoming infrastructure apparent more our increasingly for proposition pipeline for expanding protection safety opportunities.

Recently, order continues [ Finally, our be and a the the communication are regularly United across with ] robust. spans X U.S. we work we received United follow-on branches to Navy trailers and States supporting with mobile for the for the equipment. DoD States Army

We continue program. to CROWS see progress with the AHD

As under FY to and was most 'XX aware, in put contract. in for place this put of be is yet funding you are

award will to I of expect underway timing get am the and months. program the coming in become the certain more clear the

over steadily are our up, fiscal the realize several and XXXX months. acceleration ramping In is next to we eager summary, business the in

predictability from a with software outlook to the broadening coming improve visibility continues and pipeline XXXX, our increased offerings. Beyond and

turn in I'll -- the call to the outlook Dennis Now, over greater through financial detail. Dennis? and go to in an greater

Dennis Klahn

from quarter. year-over-year. prior quarter significant December was increased County. Thank year points revenue growth up we XX% grew ago XX.X% XX% In in in XXXX, the In the Hardware Alert additional 'XX, first fiscal software revenue quarter, nearly XX% grew XX Gross profit of year-over-year. Total generated Angeles the year-over-year, you, over the the revenue an recurring Genasys Richard. quarter order Los including versus in the fiscal first year quarter margin period. revenue of software

reflect This quarter's of higher a revenue the this revenue and segments results quarter. and in the both hardware mix of software favorable benefit

from continue favorable a to the of quarter margins percentage recurring channel. reflects increases, revenue a benefit through sale whilst as hardware sales sales increase a this as . Software X-point software

Quarterly in first versus Conversely, this for SG&A last project. that an including quarter the costs X-point year's was increase services, million included quarter. expenses The in primary million $X.X quarter, professional drag related to Puerto margin. operating on planning-related was year's Rico $X.X last order a were the

expenses GAAP compared million operating quarterly a loss operating quarter. quarter loss of remainder slightly $X.X We be basis, our similar On an will $X.X higher was the of anticipate fiscal year million, throughout to fiscal ago the in year. or operating first this

stock with net this of excludes negative Adjusted was improvement million fiscal in of noncash in other of million the significant fiscal quarter the compensation the GAAP the $X year's last including adjustment EBITDA, value from a million, $X.X loss a the to $X.X quarter first negative XXXX. which May. was issued quarterly term fair to million, $X.X loan related first income warrants,

This $X.X marketable of by first for to million first quarter with compared $XXX,XXX, loss deposit including quarter. million the million of Puerto equivalents dams $X fiscal Cash year-end. prior this totaled compares XXXX's the received an net activities and first group of operating XX, securities fiscal XXXX, in provided cash in of the fiscal was the million year as in Rico. $XX.X Cash, December of $XX.X as

group deposit million. for approval we quarter, designs for a $XX nearly Recently, Subsequent of the second third expected is end the written the for of dams. deposit The third to the on the we received $X.X received million. group

of upon customer XX dams groups. X each the of will in purchase the XX% remaining these We the price of receive acceptance

in I'd how through the Now our for expectations the Puerto update project on like to Rico everyone current financials. flow

have work the group the in against seen, is received group of to us deliver on inventory deposits the implementation materials in cash plans procure installation allowing we This to being of the each As of group. the necessary and each dams. are for advance

completion utilize Our the of project. of the current that Rico most significant on revenue we will the percentage Puerto is elements for expectation recognition methodology

milestones the gets of first revenue and indicated, with June quarter be Richard group first recorded achieved revenues recognition significant hardware in when the more coming with As will quarter underway. deliveries our project and this we've initial implementation the of

recognition POC details completion. steady significant to still of contribution until accounting Once through relatively revenues are a half project revenue finalized, expect the we fiscal of anticipate begins, the this recognize being While the year. don't second

pipeline well million, of million turnaround Genasys' expanding With $X.X the opportunities, financial backlog including is of $XX underway. has and that ARR to grown

Richard Neaton

you, Thank Dennis.

operator, up for are open call Now the Q&A. we to ready

Operator

from Capital. take Mike [Operator Instructions] question our first Northland from We'll Latimore

Mike Latimore

in just more frames deployment a on Rico. the bit clarity maybe Yes, time little Puerto

be to the get You bit I I in June deployed? you the and guess quarter more bigger would Or expect important be the half. more dams get to year standpoint, then pattern kind second how but a do great. many some revenue, from to dam rec maybe little there's rev . of a a in think, other on that are deployments of little metrics detail this

Richard Danforth

Mike, the begun island. has the process on

The will first challenging, and one, group first will second group new parallel with bit. every the course, begin in be of But the the staggered like little just a most thing. third

on share get substantially So to expect lion's I revenue think through those work of from the the island, we the groups. being the done X

what these at point. Now, running this to that's Mike, but we're

Mike Latimore

makes That sense.

about see you would $XX talked receipt You the getting group fourth Do the could million third be that think end? by on on a fiscal eventually. year cash group cash you

Richard Danforth

but Unlikely. Mike. that try, won't that's It's not off, a we ways

as let's close. So answer that we

Mike Latimore

even in And on can Southern you there little of a that I elaborate a on bit acoustic you guess, you bit? that opportunity area talked generally. opportunities of little California? Got L.A. then touched Is the -- sort for it. the

Richard Danforth

the the traffic e-mails, is. since website TV we're all occurred, getting on through the inbound our huge. is There fires inbound and

LRAD think of from opportunities what's on see more a I in we'll consequence and perspective So a software the as L.A. going fires. much

Operator

question we'll Instructions] [Operator from from take Capital. our Woo Ascendiant And next Ed

Edward Woo

Congratulations you progress, the quarter? on what the Yes. was disclose after first the all do backlog

Richard Danforth

Dennis . did, Dennis?

Dennis Klahn

. hardware. in million $XX It's

Edward Woo

enter? getting as in congratulations a this Then people lot are increase [indiscernible] success or Okay. a fire market very obviously, and potential potential seeing in chaotic the had during my you're have you visibility noticed that a any more as to who question competition on is is you time.

Richard Danforth

if we it. No, see to little No, a that soon little that happens, too a It's haven't. haven't. it's No. -- probably we But

Operator

our [Operator from Instructions] Scott And from . next we'll ROTH question take Searle Capital.

Scott Searle

the the a not in going those only no supply with of negative forward? of factor that ] Nice high rolling business, And to terms you guys released to that that help issues. having understand still prepared from had start to against of the terms -- of the could administrations change chain secure gating kind if us see initially you then impact a constraints How in been but finally ability PREPA There ability [ maybe Richard, to a for now are PREPA? is start out. impact level, just funds positive or to is have projects.

Richard Danforth

answer Frankly, supply the but the Scott, administration, are managing well, catch the are We're to the will of in chain. supply chain. it From gate beginning, quickly. the up question, very first There issues then a through them. affect us. change

it's -- spending we're to public affect defense see an think But in the business perhaps than something from I going administration think to we're something I a this is is from safety more perspective, in the likely increase everybody. past.

Scott Searle

X if could And questions. the Okay. California guess maybe on I up wildfires. follow I

very time, in to were right? some on of First some of has number relatively number the of inbound in So opportunity terms [ if wondering gone on curious could us alerts events in comments. I'm happened for was a ] I'd events. all counties of period represented Genasys some multiple despite and be look high-profile what Florida. other the contained the in you it give the occurred of incidents, that you're wonder past strong did you the you that -- if might shortened provided. on or thoughts if were the some, this a provide performance, or terms unlike Carolinas those terms press because when that some terms in we whether of I created. of context quantify how activity it terms is, [indiscernible] But the of out at System, Same what thing PoPs seeing? false be in in was that's I magnitude there Protect that well There updates well the also view that as of for weeks, were went guess about could there's

Richard Danforth

to LA out on in and been ] iPoS County's moment. fires, of the a I'll negative Genasys that there we went system, part alert to the on alert alert a back the was Scott, an [ of the system. But lot that are we There's press, are response get that as national

alert So across out. an multiple channels went

a received than the less X All except -- to defaulted and entire geography that the warning. were In [ ] of canceled. county. wasn't less them the channel, than minutes, intended and that's an It in was Lea In was evacuation. was it it

changes alleviate subsequently We've Genasys. a ever put of in help happening place from with happened to what couple . software that's So that again.

been experienced centers the sent. days were be was are thousands at events, messages most that in And they all received, that catastrophic overwhelmed, So here the There like have of been noise that going have issue some networks that we Genasys. cellular infrastructure, in cases, the which certainly around were after to and of major L.A. they

the of there of lives, ground. performance the you tens the that a to to of over Scott, acres at thousands this of if look burned of Genasys of System, saving X Protect fire lasted weeks, As thousands from homes tens X perspective over fires was

XX And smaller much be that measured you happen and life. that and parametrically seen compare fires or likely in it potentially are have We County, would L.A. much just the if in duration XX to other shorter in of X,XXX. would loss

recent and LA fires images in passed of out car time's Nobody their I'll did burnt people the in in first terrific away and fires. So remind car LA Emergency job in way. of a people fires. everybody safe their responders Office and and past Management of died keeping these of

the was of L.A. -- on performance Genasys County both the the Protect and So terrific on behalf platform.

Scott Searle

Protect as that we in about of what quantify otherwise, is of there sort 'XX? you And helpful. a way or and inbounds it, of the Richard, call as that's to performance System the represents result intermediate and 'XX the terms opportunity that of arising potentially a think I'll what Very Genasys Great. start opportunity -- to

Richard Danforth

in that been want we There County is, Scott. platform. has -- including me, I and in have but it, of own L.A. don't their cities front communities

think we'll into we so speak, quantify . clears, position move to in quarter. the better the as next a smoke that when I So to be

Scott Searle

Got you.

time I when and terms P&L? of could impact see the could, cross current that in to go resolution line on expected start it's of if you back I the starting to So just front, wanted to to

Richard Danforth

That's X questions.

mentioned evident I will more think I the say in exact some timing, . are there And think for my coming coming in there very is Yes, the all -- positive really in as remarks, months. months. That's can I signs. become about that the I now.

Operator

to this I'd the turn for remarks. [Operator floor Alger time. Instructions] closing back Brian be There at questions no to appears further to like

Brian Alger

XX, Great. be one-on-ones in March, we'll Dana company's give a March throughout available today's heads participating I be Tech be to day shortly. the in XX, February tomorrow, that annual [ here you in the will call. Conference. conference of the participating the the Thank with A participating loss everyone, up [ want Genasys replay on call Virtual also you, and website for ] And all ]. will XX AGP on in Point in

and on X regarding look and comment actively our with strongly networks, you LinkedIn, where your second to next to that and happening. are update on particularly company fiscal quarter results. Protect again the we Good customers Genasys news the serve, speaking recommend information and activity follow XXXX We we quarter post night. as products events social on and Additional Genasys, report they we forward and you

Operator

Ladies and gentlemen, for does your participation. We conclude you today's teleconference. this thank

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

Genasys (GNSS) 11 Feb 252025 Q1 Earnings call transcript