SCKT - Earnings call transcript Q4 2024

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Operator

Welcome to the Socket Mobile, Inc. Q4 2024 Earnings Call. My name is Jen, and I will be your operator for today's call.

Before we begin, I'd like to remind everyone that this conference call may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities and Exchange Act of 1934 as amended. acceptance but and limited including and mobile timing, products. and include, mobile statements details market statements statements Socket distribution collection and Mobile in data data market in conditions forward-looking and are trends, the to, not regarding on predicting opportunities Such the products markets sales which of collection its products, sells may of anticipated; delayed may of successful that materially to a product acceptance factors, uncertainties, from products risks including Socket's of the and risk and may rolled distribution not statements of financial channels and happen and forward-looking opportunities to or sales markets not and happen risk well filed products application as of as partners the actual application the that availability reports anticipated; capital; described and be Exchange statements could market the components such may out other risk involve due but because current results and the as XX-K doing that so; the products Commission. Socket's Securities risks including, predicted may Form not Socket's the choose the as Socket's as differ number anticipated or distribute necessary in factors, to, not not in in in Such market technological, with results not limited manufacture that working or be XX-Q most acceptance recent vertical risk

to any undertake statements. obligation not update any does forward-looking such Socket

turn Officer; are may Officer. Chief and Kevin to Dave with Executive Chief call I the Business Officer; begin. Kevin over Financial today you me Mills. Chief Zhao, Mills, call Mills, the On will now Kevin Lynn Holmes,

Kevin Mills

today. everyone, you afternoon, Good and us thank operator. you, joining for Thank

XX.X% We revenue margins the the for slight for of recorded XXXX. of million, over increase XXXX XX.X%, over in increase recorded XXXX. a Our year an XX% $XX.X was

significant point XXXX. of products portion the million the a year related loss from industrial latter We of the Overall, we million, that targeted to slight Xtreme revenue would Xtreme Our improvement compensation. our employee market. The difficult A at $X.X add with in operating loss of a XXXX loss over equity operating $X.X a expectation year was was started the view. be from products. revenue are to able our in portion an XXXX

positive year, During our with solution a the level we experienced interest number feedback a and received good from customers. customers, of engaged of good on

much did any longer as However, expected. than we have result, the a not taken XXXX. in deployment evaluations have And we meaningful

do work industrial potential the to to to see and continuing a establish XXXX, will that market. deployments these revenue with expect customers grow in in are foothold us We our and enable

business. on we significant foundation we that currently platforms, support us spent $X.X in capture upgraded our to X data operating allowing R&D, Capture solutions. and all ways, be our our applications the of on We improvements XXXX, support million major to of SDK development cross which to the continues which our In the Capture our SDK, primarily base systems grow top and is

the XXXX. turn Dave will plans to our call outline Dave? like Holmes, now I'd for over said, that With to who

David Holmes

Thank afternoon, you, good Kevin, and everyone.

what Kevin milestones in significant in a to the achieved few XXXX, today, like on we bit and little a As XXXX. said, highlight that of about talk are I'd we focused

the with the our environments. focused products, on concentrated expanding industrial In market in primarily launch new of we on several presence XXXX, new markets

our scanning XX beginning customer. will in Tier this diversify entry we large has to space ruggedized category X this our The we taken a adoption to that market have beyond now in positive into help Although longer commitment and retail. expected, XXXX, industrial including investments from first off pay points proof our us several is our long-term point than Fortune business

designed industrial with airports. military-grade to conditions, customer configurations: and data different in significant X withstand solutions enable XtremeScan delivering scanning of to for environments. to high-quality opens difficult capabilities comprised XtremeScan harsh is in to for segments warehousing, represents iPhone. milestone family XtremeScan XtremeScan a commitment all line and demand robust the the is offering iPhones capture industrial, This our Case, durability. door most the that product designed our the ultimate product gas, Grip, XtremeScan performance in and new This oil manufacturing, customers

designed number we family single phone XXXX workers grew represents BYOD see with a who or yet growth in strong of use The XtremeScan both for The Bring introduction devices Your for personal underserved XtremeScan increasing several the of Device business Own product category significant potential. needs. Mag a where the and market

a data compatible iPhone decision-makers feel fully quickly XX% become With the investing adaptable will durable, is users. XXe industrial XXe trusted it with for future-forward that technology. businesses capture young life, device XtremeScan, people are the This with commitment XXe. to cost-effective enhanced environments. platform, resistance, device choice iPhone a the allows industrial and and to is for iPhone clarity about in. is customers U.S. of believe the suited with in easier. device empower extra-long durable, the XXe sectors. Over an drop lot iPhone good makes enterprise We iPhone are demanding they expected iOS industrial combined battery for ideally XtremeScan go-to

and a with workflows. workers, and an these customers people mistakes for familiar obvious the As needs XtremeScan frontline industrial iPhone become capture help and choice and to XXe become training devices with employers into digitizing operating system deploy data maximize experience well-known productivity. with can can their minimize workforce move user for

around AI-powered introducing customer which website, by we invested Alfred also scanning developer capabilities enable they XXXX their developers and we with best-in-class and developer world Alfred. mobile developer apps. to our their products, call into apps helping can the is new support into our portal new Capture support, a experience in so SDK our multilingual in Beyond integrate

as more and complete Ultimately, base. us will we diversify sustainable product customer Our company. extend our make retail new a and capture this our more investments will become on data dependent technology and reach less

With Lynn that, more over on turn I'll details results. it for Lynn? financial our to

Lynn Zhao

Thanks, Dave. Good afternoon, everyone.

margin $XX from to by million, of Section the Tax in compared of XX.X% production we across allocation in year the was XXXX. Jobs and the requiring reached payroll-related revenue expenditures. reflect loss $X.XX costs an Both rose higher costs. for to a benefits $XX.X per salary loss million XXXX, in X.X% increased $X.XX of due volumes. from million XXXX, the compared $X.X driven Gross increased up overhead of XXXX. and Our to primarily XXXX. million expenses adjustments XXXX, from higher Operating million of $X.X XXXX, in to reflecting manufacturing XX.X%, R&D year-over-year XX.X% The $XX.X to increase to XXXX in Act compared net and years Cuts share loss reported XXXX In in XXX capitalization adoption of operating expenses amortization

$XXX,XXX $X XXXX million in compared for negative to XXXX. EBITDA was a negative Adjusted

from to $XXX,XXX, the XXXX million, Operating from from QX $X.X up QX compared marking QX million, million was XXXX XX% preceding decrease XXXX. loss year-over-year EBITDA Gross loss XX% in margin QX reached QX quarter the in $X.X of QX a QX in for X.X% Revenue in increased and operating year-over-year loss $XX,XXX was QX sequential the compared in We XXXX. XX% and $X QX for in $X.X X.X% quarter. grew adjusted expenses loss $XXX,XXX but in preceding from XXXX QX to sequentially XXXX million recorded year the $XXX,XXX a increase, $X.X up XXXX. in and quarter. and to $XXX,XXX XX.X% prior QX a million in XX%

tax Diluted of share included benefits million, QX earnings per in respectively. $XXX,XXX in quarters was $X.X and compared $X.XX income to QX $X.XX XXXX. Both

balance Turning to million. sheet. XXXX We balance with $X.X a our of ended cash

in spent and the capital raised notes. million issuance $X During million subordinated ] million the [ year, operations $X.X invested we of $X.X convertible in expenditure, through

to stood million $X.X XXXX, level of As a earlier. of $X.X reserves net December XX, inventory at million year our compared

This prepared remarks. wraps our up

hand the I'll call to the Now operator for questions. over

Operator

Instructions] our investor. Swanson, come question Steve [Operator first And will from

Unknown Shareholder

Are much? foresee do year? And how cash And so, happening? raise any if this need we going when to you that to

Kevin Mills

year. not have we Currently raise to cash any plans this do

cash. the with start we enough year So

We be be any positive. we bit now. our right don't X a on this then cash raise in to we expect months of expect a to cash expect cash, but year But the to half the first little strain second

current the that's plan. So

Operator

Instructions] further this it no at you. time. to there back conference appears questions [Operator are the Kevin, And I'll turn

Kevin Mills

I'd thank like operator. everyone and all a to you, just you wish Thank afternoon. participating for Thank you. good

Operator

today's conference call. you concludes this And attending. Thank for

Socket Mobile (SCKT) 25 Feb 252024 Q4 Earnings call transcript