Inseego (INSG) 8 Aug 182018 Q2 Earnings call transcript

Hello, and welcome to Inseego Corp’s Second Quarter 2018 Financial Results Conference Call. Please note that today’s event is being recorded. All will be in a listen-only mode. [Operator Instructions].

On the call today are Dan Mondor, Chairman and Chief Executive Officer; Steve Smith, Chief Financial Officer; Chris Lytle, Chief Strategy Officer and Executive Vice President of Enterprise SaaS Solutions; and Ashish Sharma, Chief Marketing Officer and Executive Vice President of IoT & Mobile Solutions.

financial be non-GAAP call, this measures discussed. will During company’s directly financial release, measures reconciliation of is to included GAAP most the the section Investors earnings A is comparable in on the website. available which the An audio also there. call be archived of replay this will also discussion contain that forward-looking today’s advised be statements. Please will historical but and beliefs. are statements on based forward-looking These facts, the are not rather company’s expectations current

described also differ Executive in I forward-looking that our materially statements on Form are would Officer go For factors ahead, could of the cause refer risk results Mondor, which call section to a and release. to note like factors Dan press the expectations, Inseego. from website. XX-Q turn Please today’s to our please XX-K, to filings, our refer the discussion actual now Please over SEC on sir. cautionary Chief contained and regarding to in available Chairman

for be Chairman again, call. and everyone, today’s It’s joining afternoon, I’ll CEO. and time to good headlines. this with start thank Good the you with as you speaking Inseego’s

First, the exceeded of million. with guidance range, adjusted adjusted top revenue and $XX at second and results our sequential EBITDA EBITDA end growth, quarter were annualized

in CEO. third market joined the Second, in a million I market hasn’t settling $XX to seems approximately the roughly million appreciated and saved minutes. before company And IoT yet few it a significance of brought as capital $XX a accomplishment. by we report that XG on launch. raised accelerate this you provide investments lawsuit I’ll new progress Frankly, new the third, we

a at it, strategic is market million end year, reflected our from of adjusted X.X, second to last we transformation the of on track CEO loss increased of I our as the by the and underscores three-year We us business financing of plan continue and affirmation cloud proceeds to a quarter. in EBITDA execution progress for results Since multiple for we positive as offensive be $X.X to Yesterday’s $X in market to Demand refer of the and XXXX objective seeing. make joined quarter million first million Inseego as to take our strategy. announcement new momentum. the by new our $X.X and great an the weapon opportunities advantage an of are our accelerating. of to The investment quarter IoT we is is are first-to- XG this products

very to their Inseego Solutions. see SaaS continue for both and market voting Customers outlook Solutions We tremendous wallets. in and with momentum IoT positive. are QX is The Mobile for Enterprise

products than market U.S. with annual our and We portfolio billion made progress total alone. great device is addressable products. with $X new have industrial IoT Starting revenue in in for XG launched XG. greater The XG market the

positioned are we one well of market We a and are opportunity win. early that still significant in innings to

change industry We and are underway change XG driving is by landscape of permanent. innovation. is sea helping I the real focused and The network both transformation on broadband believe

the key very design products. working very partners form factors, for and feature and our closely customers functionality refine have first development as been well as We to sets key with XG

and applications. laser-focused are We and will be represents network billion for to We be to $X products first XG Inseego, we opportunity launching fixed market. a three for revenue XG mobile believe

time the unable to of Now I X announced. further publicly these am must G comment of mention, the as commercial I because such launches, ultrasensitivity regarding are timing until

and like asset to our touch would business. upon fleet I Ctrack Next, management

and we business where advantage. subscriber saw wins Ctrack solution cases, business of major with First, weak excluding customer combines is of X% Put and subscriber integration system triple We competitive Africa vertical digit international growth, together, a deemphasis and on progressing have consumer unprofitable backlog there markets, our growth unit a across UBI of intelligence. a new security, pipeline. Aviation and value-added growth economy. customer use continued because slowed level, expansion all has and The South

opportunity EMEA, is logistics subscription UK to into stage. revenue is contracts Aviation GAAP so everyone takes new I the a Inseego. this term in market, including have of another over we spread high with again, global in to growth businesses revenue long- for nascent governs the this, player which numbers. is at International customers a It growth $X sales it a translate want life believe contract. recognition We the SaaS remind time and the billion Airport. the Once Brussels

We patience customer pipeline. grow to exercising while the are we continue

establishing largest contract to Turning long-term three-year management customer. subscription our with relationship We T-Mobile, another a signed extension DMS our DMS with business. SaaS solution

now five government to accounts. at in part happy the subscriber So expanding And at the in the are we size report Sprint at business. T-Mobile very dimension years, this new base a three the I’m of years of and

Overall, accounts We have provides prior believe, expansion drive we in good making base enterprise we Xx This, about XXx subscription growing started subscription adding model. revenue the market. of the private business to are to recurring our growth. SaaS SaaS progress to addressable a

this report see earnings to expect in and subscriber the in We call. a next on the numbers jump I’ll

Now our and moving IoT to Mobile Solutions.

of uptick We has XG. This to demand hotspot as for are XG our is LTE good business customer legacy softened news focus the last our products. in seeing in had quarters MiFi shifted couple as an

opportunities opportunities. products year. great stated seizing U.S. which provider, a been when was a refined won Service We to and demand as that resulted took I base, diversifying strengthened has provider and a Mobile on in new administration last cellular, CEO on Chinese ban U.S. customer our result. and Tier goal is Tier three current we’re a over U.S. as XG large Canadian transition other the have competition, XG X progress additional service engaging customers, However, operators with from XG recently This plans X XG including

IoT Turning Solutions. to Skyus our

We in remote these connectivity of to amongst monitoring three networks. increased seeing opportunities. these and complete demand products. launched To other positioned signage are IoT for we on are and things IoT mobile and solutions products and IoT focused digital we a We provide, over are market building capitalize, new device-to-cloud capture portfolio June

to and billion robust I annually tremendous are restructured how As in a margins. for markets discussed U.S. we call, with opportunity $X.X a reminder, IoT earnings the Last and industrial growth over lead us alone line Frisch top drive by appointing Provider growth. Americas. Mark Sales, and for lot Service to team muscle added Harris We Enterprise the of a the sales to global Sales Rick leading

provider We are sales, broadening service in making progress customer our base. notably

product In indirect September, integrators, high direct organization leads. channel of distributors value-added global also direct of strategy touch we team, building XX resellers. fulfill, sales Inseego’s reorganized add leader projected a there mode, value generate a every $X and capture, are with Stay for be ongoing We for chains in not million and to direct sales, resellers, President supply works the launching basis and the and on I distribution. Fradet comprehensive has should grow tuned years of Senior so chain out purchasers. provider channel done for cost of goods partner supply global management Jacques to We added products. who we’ve updates. point – future for we’ve implementing squeeze is high-caliber of push-pull Vice enterprise customer known penny also Channel early to sales is new to this the with an of addition Inseego in XG overhead and sales new scale company over Jacques as partners Operations. service that. launch market direct and experience He the and Inseego’s Jacques strategy. one into broadline growth reducing and and out appointment Job is supply a as supply chain enterprise sales Indirect, sales base. an will to program, system work consisting network support of been services responsible chain

to back turning XG. Now

to plans broadband have months. gained be talked giving CEO, last the them commercial XG Hans for the the Vestberg, deployments a So larger much in about momentum provider. incoming recently Verizon’s few opportunity

analysts significant great intellectual said are rapidly in XX begin to announced year, large and partnerships XG it. Verizon’s Communications’ home the and IoT I players cloud, services Inseego to mobile deep XG base, that, is XG. of for over customers. CEO, said is additional mobile end and arrive fixed players. track the an us the services these of knowledge now XG recently on assured, wave launch would rest in asset and with mobile, next addition beyond in John that with first plan investing then spectrum building Huge first extend AT&T look XXXX. will Donovan, nine impressive carriers importantly broadband, opportunity enterprise he T-Mobile to ecosystem early later cities, with and with In industry tracking, that to would momentum will commercial Google, year globally Inseego's And device recently to Verizon offer size. quote demonstrates think XG quickly customer these we’re statement in industrial as businesses trials plans impact XG combined cannot said property that. to said new and pause. platform latest "the expertise how a the that developing rollout are markets this quote than their the across IoT evolving using will it The expected on developments in and continue XX I their platforms. for "going a Inseego I revolution." well takes market for fourth has pursuing and smartphones we powerful I more deploying a technology Sprint service gives wave vertical from are cities for imagine including by markets of players and provide through The IoT and recently by as moment we be cloud markets, millimeter biggest have cloud and the XX investments year." Amazon. Microsoft reporting the giant such is

lead device-to-cloud industry goal IoT Our solutions. is XG to with and the

and call the I'll highlights turn the guidance quarter. the provide to for Steve third for financial quarter Now, over to

start are and with here moves with one, move provides Trading, IoT closer initiatives. and working to and capital accelerate deleveraging North by financing, the our us towards cloud with Dan, us I'll in new the of of to afternoon, the financing of new L.P. former Sound and key two, the financing a R.E.R. invest further we Tavistock North development development matter we top of This the to long and Number line, Thanks, Sound Bottom XG, shareholders transactions settled Group and the required goal couple everyone. elaborating on product long-term haul. Tavistock primarily sheet. industrial good balance the Number Enterprises. it for the product On legal invest sales. areas of the of

$XX pointed sheet. the settlement remarks, in As balance the million Dan removes out in approximately his liabilities from aggregate

quarter. third cash deleverages to from the $XX.X million together the the Detailed over million. $XX will additional $XX These liability rate $X initiatives sheet reduces it taken by about two EBITDA With completed almost run as importantly, be this adjusted balance annualized million, in approximately our million More add low as liquidity. accounting XX%. of in QX

Now the quarter. of on to second results the

As our on last year. strategic noted and end provided afternoon, for our and positive ago, a was higher from This gross to an during cost release the million XX% X.X% at both due the on X.X% a $X.X period initiatives. efficiency. XX% forward focus and were top quarter, $XX.X X% QX call. the a progress, and improvements down margin this from the EBITDA million from the May combination in guidance up reductions continue press of points to GAAP last or of relentless QX quarter of year adjusted increase we quarter we see revenues same same was than operational of conference second

million year-over-year $XXX,XXX GAAP purchased QX, approximately including intangibles of XX% approximately improvement was quarter's from million improvement XX% restructuring, comp. QX of $XXX,XXX year. OpEx loss of of $XXX,XXX Our a from amortization of GAAP $XXX,XXX loss million $X.X last in approximately operating in last of $X.X share and loss was the based an $XX.X and

a of XXXX. net respectively, loss per to per QX QX or loss Our million $X.X in $X.X for the $X.XX net a GAAP net loss share loss $X.XX in XXXX of million and or compared $XX $X.XX share million net and and quarter was

the additions for million XXXX metrics. to the discontinued of of expectations. our product marketing for XX% margin lowered year-over-year. and of QX from non-GAAP $XX.X the channel any $XXX,XXX expenses, the increased case, direct our impairment with quarter service $XXX,XXX resources With In respect with in and provider OpEx non-GAAP key from Consolidated associated America, operating from we've to an or up consistent ago. the in about and decreased increase and from current quarter G&A each XX% Turning excluded was year to lines. recovery increased the by last reflecting quarter, about both quarter sales – North both gross to last $XXX,XXX, impact enterprise quarter and a XX.X%, for sequentially non-GAAP sales and XX.X%

out, technologies As technologies we spending investments new products in products plan and a entails frequently currently stages We our in systems. of strategic additional various new collection and pointed many development, of hotspots we Expect to three-year have from development associated these LTE and from certifications bring market as industrial our new XG to XG increase to to routers. gateway products for these devices. IoT cost fund carrier-specific to

million million $X last XXXX loss profit XXXX, same $X.X than $X.X year. more a On a improved basis, non-GAAP an million in $X of Our was of million non-GAAP from and last $X.X period an improvement XXXX operating profit operating to million. increase of first quarter $X.X first to of has the from million, an increase from half

of adjusted to I to decade. million achieved in the highest million million XXXX would $X.X $X.X second almost compared like since this company was a as full Our that for EBITDA and the adjusted by QX EBITDA quarter is XXXX, QX XXXX the quarterly $X.X note for XXXX.

same per in loss expenses. share quarter non-GAAP our last primarily our to $X.XX, the from was of an of full improvement period due net non-GAAP press reconciliation operating lowered of $X.XX an and QX to $X.XX contained a year, improvement last Our GAAP release. financials is A in from

due margin XX% Mobile QX up to of On in recoveries Now, in and Mobile and see margins, I'll was compared a in same QX, increase pro was largely products legacy QX Solutions. of gross million breakdown year. up IoT XX.X% period IoT million, XXXX, last new Mobile SaaS revenue revenue a and revenues, X.X X% & to are XXXX. gross basis, Mobile IoT the for We MiFi continue we improved began up for million to from believe will or & points points Solutions $X.X points partnerships from & as of revenues from business the the period & $XX.X Versus to four adjusted result higher a of or improve provide down Solutions $X.X four from XXXX, XX.X% QX. EBITDA million business. XX%. Solutions QX $X.X forma as and this Non-GAAP was an in year-over-year IoT or same and QX Enterprise

is to groundwork to This on forma improvements, cover as figures services margin. pro hit to pro change. a While still our are there shared we is of allocations forma are strictly target standalone estimate showing subject and entities. a businesses information lot are to based of non-GAAP intended These costs illustrate the

forma by $X.X adjusted QX. our associated from Revenue XX% SaaS EBITDA exchange the to basis, dollar. Solutions SaaS down in up and million as forma contracts. fluctuations, last African On quarter-over-quarter U.S. and Enterprise the the $X.X on currency for $X Now prior X%. reductions Non-GAAP tie as the XXXX, are of the all of overall currencies from rand illustrate end across was with as compared fell to Solutions. out, combination or was service XX.X% end was revenue, in prices Again, QX, a to was last QX year. pro Enterprise bulk same fell To million from to leaves million million QX same The of regions XX.X% which the Revenue estimates corporate increases The $XX.X gross non-GAAP Year-over-year, versus XX.X% in year. to of new and adjusted slightly Enterprise increased Solutions SaaS the impacted things quarter of unallocated G&A, Solutions down us DMS with $XXX,XXX about revenues SaaS EBITDA. to particular million in numbers approximately entities. South quarter-over-quarter the in expenses, intended the foreign was of due costs in strictly a $X.X the margins roughly last XX% to standalone quarter. Enterprise QX period in businesses the in pro this international period largely from for round

inclusive cash the million same flow $XX Operating and million to the QX. in to restricted was cash period Cash and increasing Compared of at balance cash million equivalents equivalents up is from the was end $X.X turning year, QX. cash million. $X.X cash of QX, sheet. last $X.X Now

low moving we and $X.X As QX Expect we cash inventories already decreased million intra-quarter forward. receivables we’ve from stated performance grow as and will inventories. of swings down balances previously, Inventories up see to due that about inter- working in balance capital the numbers. payables, going and

XX-day cycle, You'll which our substantial a in also receivables XX-day position. payable note and had accounts generally we cash to QX, run on cycle which increases improve in run that helping a

QX approximately Finally, weighted outstanding about $XX.X outstanding our average from $XX for weighted In first shares our XXX,XXX increase of was million. average quarter. XXXX, shares QX shares million, the an was

guidance. the at to top the that end of in QX. company moving Finally, guidance We're extremely pleased came in

We bottom and as new to to EBITDA the make are and of expect $X.X time, to develop to in allow while budgets new – third in to key existing market, in to quarter consolidated range line. million XG be within guidance, continuing increases bring of million other the success investment $X.X to $XX and the us our range providing headroom same revenues the to products for Accordingly, be we adjusted million. to our million $XX total at

closing revenues Our $XX the are expected Solutions $XX remarks. the in range IoT prepared & to this turn call my Thank to I’ll to are the $XX At remarks. his of be SaaS point, to million Enterprise ends $XX revenues to be Dan of million. That million Mobile range in you. Solutions and for expected million back

built last customer with Thanks, made we’ve the momentum. over Steve. product several and pleased We the progress quarters. I’m

and shareholders. in our to confident customer create ability for our value are pipeline growing innovation We our and

our in is previously, in growth all discussed and we our to evaluating resources investments. I’ll transform we to very reiterate, are go-to-market drive continue we revenue strategy to disciplined As products as invest business.

So opportunities that moonshots get don’t. are funded, real, worth it and winnable

have current prospective that, We both increased dramatically numerous by customers and time and I mean face customers new customers. with

current there Inseego insight Inseego. them U.S. several are XG. suppliers new for We telling working a alongside additions and forward to our – Phil our new alongside the during future how welcome me to both Phil I’m out chose the Jim Board advisor as and they who to on as customers device we’d They and in decades Jim I look invaluable of are incredible won. board our and process. of stepped worked from XG stages Falcone and I Telematics. Avery expertise their better shape delighted and members, team Tuder. as guidance, and will a the We they are to cloud a Board these they to Bob our Directors. The to role provided Inseego trusted go ask experience and listening the insight tell me Licht want down has priceless. thank them will serve gaining and work, to to with to in and I’ll to biggest opportunities it’s early us long-term and leadership will than I captured how my the you new the Chairman. Pons of The of with and to capture from current plan introduce And solutions simple. Board you of one helping members promised opportunities our Chinese want strategic fans harder his on and Mark major partner, our turnaround. Jeff get. additional our is the be luckier use around play especially continue Brian buying investor. to I and business for and Brian, clock Miller couldn’t Board stopped philosophy, you we’re and the bring He

sky And shareholders. X.X every employee company hallways for long fresh are the longer are for want high excitement. The and energy for matter should levels We have Inseego buzzing efforts. are bright. know, very future solid and to The Investors us, I thank to momentum. foundation. you work and a the Inseego the put hard and the great Board is with legal a have gaining in transformation have the who future. this the dedication we our tireless doubts need With prospects in about no capital very to behind hours

of to much and I attitude the get team, our through Board We capable have know sheet the to The a to company. Inseego much to expanded improvements the execution. the listening aggressive recent done universe. goals balance and more and this: is single set deleverage make billion-dollar and mission stronger call investor a today’s every and the employee collective has management is operational job company dramatically want everyone relentless

we’ll Growth the in Xth, Conference hope Finally see there. and you be to Thursday, this closing, Boston Genuity in the presenting I at Canaccord

let’s that prepared my So concludes and go to Q&A. remarks

We Instructions] will now begin [Operator first question will Our the of Canaccord question-and-answer session. Walkley Mike Genuity. come from

Great. congratulations results taking the on guidance. and and my Thanks strong for questions

about Just how to we ramping the of Are some OpEx? of going you in to as next short think term quarters? us the help now couple we those the over with to should OpEx drive the can OpEx opportunities be look you opportunities out or targets cadence recent with your funding,

our our provide yes, envelope, guidance we our I contribution specific But, provide within on the opportunities line spending there. don’t and levels. top the obviously, to – adjusted and are that on mean, The is our We guidance it EBITDA. that speaks but OpEx new

them, well. think very quite We that result showing pursue said. frankly. how are that, every we as penny, up to quite going to on we We invest I judicious spend remain is And

of we some opportunity XG suppliers the ban opportunities the about importantly opportunities took along, them vendors, seized from going in come quite – that we address and cloud them suddenly we the have the on and as came IoT, with. the Chinese that to As we’re with field so

I a think it’s and that. just Mike, measured leave approach, So we’ll it at

with puts to good about they position upgrade some strategic you carriers talking for XG, in of fair. those Okay, that XG. just certainly that’s the as And a wins

in those that term on of deals, is Or reprice you footprint cost as those customer those a overall by terms to longer the that maybe gross getting them? margin when to have to deals there winning with margin transition accretive lower business then [ph] chance with is in deals? just gross get maybe it just model a win You your you fresh

mean, yes. and question a on. great it’s it’s spot I Well,

So, I mean, development with type there and XG are not per associated what, about find I through se. these opened frankly, bands certification an as really different not opportunities, you XG would it as may is typically that and our now opening, a that base customers using some that are conversations these is what But we products tell certification. happening fundamentally I to has products, business. said, carrier the others, amongst say, of quite really we’re broader the really, with it’s It’s And new case what before. had are are cost of current we costs conversation cost shall to you having opportunity, that have be. There’s relative

with those XG. goodness evaluation process seizing in there strategies is being bid in in involved with associated and XG selection goodness and and there’s and So the of opportunities now lot a

see Great. spending second the revenue as meaningful you XG your Thanks. roadmap look customer rollout. that, kind know won’t think there’s first XG this you’ll plans, building you do big the about of starting I specific then on network carrier talk just Inseego? on And at year for half some of your there, but When you on

launches this well fairly there year. commercial for it’s think later are that plans understood I Well,

deployment of exiting and customers this and I we to there of believe. we and think and from are half of see of, will XXXX working year, be that very beginning half in scale transition – announced limited the be were am So say, the plans with there. will of onward first my a modest, We deployments careful closely beyond ramp we being in later publicly. the I a scope, in have shall the they’ve remarks, because some broader the in mentioned held what very XXXX first I

customer, we launches to news do. when we’re introductions not and And directly so of to behalf timelines, on which talk announcing product going quite and the we’re the frankly the

exactly cautious of need very let exciting those but ours, not of when it will it and announced, the with being point. it that. we’ll be being shipped, to about sorts we’re So very be naturally And because be supplied, guarded at we’re part talking we those words, customer’s very, that news, are

question result. for on Steve, and me company to with the you turn positive just closer the on. it help non-GAAP count just closer positive? the flipping housekeeping EPS, with fully congratulations getting Thank Last share and I’ll earnings pass when you and Great. updated to can does your us diluted strong

Thanks a lot, Mike.

can the we what our shares, of – change our X-K, million new you So to number obviously $XX.X that numbers outstanding figures. provided off our financing. weighted they’re And the average add shares, just fully grab the those – will the of to what

I questions the all had. that’s Thanks

of Markets. Latimore Our will from Capital question Mike Northland come next

why on Excellent legacy just bit? a the just little bit. elaborate You Thanks. can little be you that MiFi business bit? have elaborate Can said the that patterns occurring, a guess quarter. little your I – might a improved that be you Great. around explain

Yes.

transition from XG technology XG, flushing is and recently there of our positioned planning to now the of I guess into from that has been XG XG, or such to focus LTE it’ll we’ve and a what some fairly area of say, to you’d and out the XG how details, more broadband gigabit seen as shift higher come So in the capacity really have be focus. the how newer LTE

of have plans with transition that out flushed to So starting enable, identified see frankly to going. want transformation they that customers XG, their cases use have starting and sort and we're

applications they're understanding, think, use broader cases the and a transition that flushing plans I and So XG. today of to for pre out looking provide

tied confidence level or I had I might see the Aviation then to September you be Enterprise we what improve guess, in And your is level think SaaS that maybe would subscriber there? indicated could Great. quarter.

I broke if little please. up again, a actually wonder Mike, question bit. [indiscernible] I you could

that the is I your to what tied indicated guess, that and rate growth or improvement confidence? in level is your confidence subscriber quarter, confidence up. September had that in causes deployment think you Aviation I

which regarding business. you aviation, Well, DMS the the if SaaS yes, con SMB, general, three then Enterprise enabler the the was subscription and will, SaaS in fleet and Ctrack so covers, verticals,

there's factors So going of couple a on there.

is comment course, enterprises, And in of made DMS these five for two the second growth of Sprint kind First opened I X. up years, verticals and to have T-Mobile related area was account past business of the long-term contracts area which, growth to now, the the on subscriber and that government a and many. they've Ctrack they

adding of in deploying in uplift in the nice both that their the subscription businesses, we capability our of And be and a Enterprise base. so subscribers will creates side

factors those playing drivers. and Ctrack of both DMS together, are So the

then, supply new And of products trending – I chain work mean, done that are great. the year? guess, these Okay, to out, the where the over sort and should you've what next the about some think we margins of given I coming hardware improve gross

we've Well Upward. clearly, be more to done. got work

improvement You've gross in seen IoT margins. modest some

frankly, times it are think probably mean, be. this I don't The tell we've where you I that it's to around last to much got this, need quarter, even little much, industry, not up in XX, benchmarks higher, that to needs number. like of two shy not quite a I XX close. and

to margin you one, long to way how one from work in margins, a got get but capabilities, of also, really day cost design built-in got day do. said. design as you a to We've taking out. fundamental got go, is lot Steve From we we're it So which gross the

is out of Industrial on. and combination products, costs then we're and of the supply manufacturing margin in IoT, XG IoT the certainly, higher a and launching chain, building materials taking cost journey general So

in good aggressive hardware XX% And have my books, are in might you margins be we So target more much, thinking. a the to than XX%. appliance much

to but improving we're sights our a clearly really we off, way long Now have and strengthening there.

Yes.

And business? on recent just the that or great. directed of be for is I investment Okay, that that can guess last SaaS of the or and IoT XG here. hardware some some of XG Is – to specifically kind

we our we is both. but IoT that as we XG is source, leverage, to do investing it's out No, by find solutions cloud there said cloud, platforms, platforms actually And that what single platforms technology current evolving there. capture a try to statement, for to and are are cloud in business, can Enterprise software to looking we've I'll SaaS a which with means and new

answer, short it hardware cloud capability. and is it's yes, certainly So both software in

great. Okay,

Thanks. welcome. You’re

Schmidt Street from The Capital of Jaeson next Markets. Lake question comes

IoT my taking anything have of Wondering of for just and ordinary be if out if segment. answered, Ctrack you questions. and if thanks Most comment could MiFi ones wondering a the to but then seeing in two comprises disclose questions the been standpoint you're of my would on business. much Mobile quick guys, from Hey how currently for business pricing the the me. you willing And competitive

Okay.

on fleet in vertical. from the are different which SMB customer and it's and oftentimes, We're it's competitors There different aviation. verticals, so. in dependent fleet logo. well and So new – kind first a it's very are is I profoundly answer broad question is the bases very nothing from SMB Well, established guess renewal competitive in It's of existing area. market, Ctrack pressure the competitive the

a of quite our there out, have but And in so land run that's feel being So there in now rates, story I function will that is established And a proposition. on is take and stay rate will competitive which revenue as we dependent of is bullish as grab. XXs, for basis there's we outlook reflective a on commented our be a and value is where we're a through very are. of because aviation how price levels it's big high pricing there is a position we're there. doing we Aviation what stickiness unique responses, is our long renewal different well slightly those

But, field. a in out nothing factors, those. customers, the and extraordinary FX And general, of effects, I coming from there's if commenting of will gross you're in grab to and of with yes, are tell. relative left We hardware factors think time margins, model there's acquisition other those hardware, pipeline, are involved land upfront. other Transition rental to

there's So but pressure. different pricing factors associated, not

Okay, helpful. that’s

comes Marc B. question next The of Riley. from Wiesenberger

idea the assets of ago, calls non-core discussed. earning couple monetizing was A much. very you Thank

and the still assets With monetization? the that potentially And if ripe transactions, for are recent financing on so, table? is non-core what

Yes.

aren't. we said specific the to are for assets But that look core I Yes, before that know assets plate at. we which on as will monetize. areas which and comment thanks we say won't question. that look business I our fundamental and might So the and still and did to repeat, is on to

choose that. more to And on but may make some we at I really any those monetize comments date, future so can't specific

you other Understood. that verticals non-fleet Are there in such as rail? might be pursuing interested

Well, it's interesting, yes.

So things great we a lump question. couple in And within there. fleet, because it's of interesting

running not that countryside around mining thing. necessarily as of construction, you there's think instance, which what For equipment, and the sort freighters is might and of heavy

of so we big as in are to not what kind there pursued So way fleet. within subverticals any We've far. rail refer

we've not Your recognize I other of to unused in tracking category. fleet forms things just that's me, been really I subtly the to the are within more some on want – say nuances would point asset there about. definitive but thinking there's would you Nothing there. of lost There is been

when I'll might margins? the one back hop target provide be and Could queue. timeline Okay. And achieve you EBITDA for company the me the more in for XX% then a to able

providing the We are point at following this only guidance.

the got you are run that at to this XXXX EBITDA to – – annualized going coming exiting rate So answer million, be last still of an year EBITDA next out $XX we of EBITDA we're rate. million $XX saying your Did $XX quarter, question? with the run

Yes, thanks.

session. conference question-and-answer Thank you presentation. has for today's our concludes this And attending concluded. The now

You may now disconnect.