Remark (MARK) 15 Nov 222022 Q3 Earnings call transcript

Good day, and welcome to the Remark Holdings Third Quarter 2022 Financial Results Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Fay Tian. Please go ahead.

Thank you, Justin. welcome conference Holdings' call. and XXXX third everyone, results financial afternoon, to fiscal Remark quarter Good I Investor Relations Fay for am Tian, Remark. Vice President of

Tao, Gatchell Security Executive call Chairman and Vice Tao Mr. the with recap to will Chief this on just opportunities Finance; is On our about Safety a Gatchell, other and we'll businesses Mr. our will third me update Brown President And some quarter of and an In Mr. Officer; development Kai-Shing provide Chief have with Robert recent Mr. Todd Mr. talk our Officer. and since results. financial Brown, and afternoon Remark's moment, our enjoy technology. business exciting

I Remark's Chairman businesses additional Executive Shing? with I any provide and the obligation Chief its over summary will and statements like call I the disclaimer turn Mr. SEC. Tao, expressly remarks, in some forward-looking Holdings take you or is that in to developments. to the those statutory the which hereof. included call to Remark results and uncertainties these Following statements will Mr. turn before recent forward-looking filings risks, Remark statements full and open over current would forward-looking date to we Holdings' opportunity be involve made reflect is update Remark's he today of the the or that Remark disclaims implied factors of expressed to differ Tao, any now statements. Officer, this to statements statements. on by color remind But these Holdings' after other a revise to Any questions. may forward-looking actual can This so forward-looking only call These statements disclaimer, materially cause views, could from

to to time execute to the first arena we’ve have our AI U.S., major us, we attached top further of million a in listen globally. plan with in to Remark will the our this just U.S. for to but indicator XX go scale to we as on. and over million than you the of the XX hub taking update on X.X the not quarter, foundation won continued build quarter ahead our third much annually. to sports continue update visitors platform but annual is with are detail Thank our a transportation visitors, here In into more to we a contract entertainment Starting Rob globally. what with major later and is confident third strong

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the Moving across Pacific.

full to loosened policies which continue six that our the Mobile three allow to China, in will in deployment to China's speed of branches. stringent zero the months, the will retail be of conclusion back next we and with With in National sometime us optimistic COVID Congress the to Party Bank China go are

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Our include Remark which bringing we at campuses million Smart highlights deployed solutions, for were total campuses, other over in our and excess than AI the they XX COVID stringent to policy, third more than Campus the in China, XXX more in students. quarter despite China, cover installations now zero X

now AI our projects. -- we evaluation have In the system launched addition, now we Smart In sell on we to completed that Construction sorry, the we've also on an will site -- XX recently previous in and completed have initially the compared of we XX quarter we done. project sell our platform, top XX -- of and third current student additional installations on safety what the using quarter use will -- that an industry, and installations I'm we completed installation and initial our -- building top during

Each our is to to and towards XX second project. and Our to -- at sites, initially as mentioned Continental the opens the positive initial in revenue UK generates total project quarter, and is up. momentum Atlantic our across Europe. the the construction last installation is $XXX,XXX to XX-site we China completion of expected I grow continue work In and

integrators our to expect next our expanding it footprint large partnered have to been existing to Similar and the technology and successful have positive over to we quite expand VMS We as in have the news there. platform quarter share companies with efficiently we up U.S., taking and effectively.

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about a our want business, over how got take to to we Rob go here. I talk pass the U.S. to I Before to back call over step

never believe a built like We technology venture up. or capital much our as the said we stronger since equity business began have our received build have to we from our competitors we've that, ground built business. Having private we

We from there over are deploying profitability we but not developed years, yet. benefiting the we technology are past the to scaling are as five

to continue business finance to our of public still the has ability operations always on support dependent shareholders. is capital Our and our the our markets dependent to and trust on been access

software in reverse initial naturally reason, we XXXX to and that are stock recurring, raise in requires to capturing our such QX winning we continue approve contracts, are recently into of described can massive NASDAQ For support. a which capital to proxy The split statement listing an the filed asking equity our QX in preserve our are shareholders so the and projects opportunities we hardware we XXXX. convert scalable, investment subscription in increased and annual fund

on Biden dilution expected confident it of combined I approve have has investment, are of filed our with AI-powered and the management earnings. of groundwork reverse our cash of for dilution Ionic in strong any interest the flow future such We return your one also is Ventures, each acknowledge been Safety by impacted in recently Remark to and more in a vote while of you, developing in provided we credit Safety of which Though therefore the as continuing proxy to with you the most, five described Platform. and of available investors or the proposal any the proposal recognize who advance shareholders, impact As discuss potential of and Smart Bill, to XX% hurt supported to leading Smart common issuance lays accretive to Infrastructure the line you deployment the us this funding support we Platform, our and commercial have thank Rob? fully with favor the shareholder has We patient largest remain convertible the past subordinated split statement. Holdings. of for stock stock of and debenture the our pursuant urge of our equity years,

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building and our are award-winning soon upon fruits of We momentum our of will labor. wave the a reveal technology

have that in a in months latest X.X hub the to product the have industries with annually. phases XX security that solutions. selected a competitive and million and aviation, Florida, model transportation sector million top verticals as business first clients evangelists America. process, retail South over U.S., providing highlight and we visitors team part implement who while than one leaders After the known sports been the and security a engaged passengers being QX We in was security are recruited in entertainment arenas winning more of projects analyzing few and public with. development spent entertainment the of and pass with annual of are past our in business industries professionals have former the well-respected through we have XX of One The been Nevada with private

players We the fans, safest experience to employees, guests, possible deliver performers. and arena are helping to

investigation analysis, clock. first trespassing Safety features alerts smoke detection, actionable data-driven and real-time detection security suspicious loitering, Smart detection improve fire with perimeter intrusion Our for This is around behavioral on phase and the to detection, intelligent of intelligence, the only breaches security insights of counting, Platform detection. and people integration potential object the allow the

this confident phase big are where more well subsequent quickly stadiums, be us expand sports the even and priority. arenas as many security hubs traffic the that as to first city allow into #X to phases is We importantly, and will other

operations in AI of Another largest of XX highlight that the one U.S., the streamlines solution airports providing in the with is passengers. million Remark annual that over QX a is

as quicker in which order, the turn ability to problem to alert gives experience. The intended. resources designated of conveyances stops such One mobile application and applications the are we solves conveyance time the inoperable a the in a of a working walkways by to operator provides a real escalators rapidly proper passenger providing working conveyance issue deploying when return resolve the the alerting within the area by as better operator

a technology One at addition, prevention. with used customer's location real while client. solution are learning the persons any customer prevent providing that goods. to known stolen at for revenues potentially The is In is for is to new control operators present of our committed increased we when loss application losses have our in deliverable example tests locations inventory time results the better previously are

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retail, projects sports are hospitality transportation, recent clients security prospective involved in the sectors. entertainment and venues, construction, Our and and

is in unpredictable organization. during in and I critical reputation As risk comes ability world, protect any for to forms. managing people, mentioned risk the many August an while be The assets call and to resilient

clients helping a and will providing resiliency let their Remark to us of quarter is our now Brown, built force an Finance, and for company success. on be the to present financial success. and look provide showcasing time, results of communities Todd? of focus risks that understanding Our forward remain and driving path will and I ability third around Thank you continued extensive for build behind Todd your future resilience I our vulnerabilities. through Vice And updates the assets, will for XXXX. of the President subservices

Thanks, Robert.

teams As been has to China's in policy. measures the hard COVID under stringent work to continue case, zero the the other continued effect have very implemented our China overcome to had lockdowns and of

of thereby Bank China deployment us which Party visitors Mobile happen However, and we policies have some closed since onset China's the of of believe China banking that three in six allowing loosening next months, that been will consumer Congress time of the National resume the branches COVID. in to the these with to our of the retail conclusion to branches,

to to complete including In larger deployments sites third of projects at full our million. which our than year Campus deployments look various Smart in a operations with advertising quarter which repeat revenue Total at we revenue the from about quarter, XXXX China time, $X.X school $X.X fantasy remained decreased a is were projects, $X.X able million quarter prior $X.X we current path, Despite $X.X daily by our from related year. all during put completion third essentially the primarily in construction same did completions in the business by U.S. quarter a in campuses. we to Revenue quarter XXX% in able contributed districts. contributed addition, schools of construction year. decrease third the in compared business the forward same the sports percentage a quarter, in of speed of $X.X Construction deployments XXX% revenue, to due China million, Campus last in fiscal to million of its resuming such these to amount the XXXX obstacles complete XXXX. being current to still third project quarter are for nearly school due increase grew XX.X% project the million AI gross total But of remaining primarily not the last XX.X% the compared same million our though year's the of represent year. in Smart profit profit in Gross prior of to period of the with the the of amount year's unchanged to revenue was

$X.X for Of recognition changes $X.X executed our to was the the common market due Net has the investment On we cash Our million share the XXXX, of at operating totaled of Ventures, debenture disclosed those by last convertible a XX, the nine $XX.X year million XX, a September year. from compared September a raised third during accounts with million prior operating million revaluation XXXX. loss accounts we revenue we of of ended only several during the the the of in included the in are expense million a of quarter third Ionic and minimis necessary deals COVID to Inc., The on the in company's since gain million certain line in categories. was and conditions. XXXX quarter increase balance such XXXX $X.XX operating macroeconomic increases operating for bad third discussed our XX, a $XX.X $XX our of our of increased activities or Sharecare, million evaluation Net was giving to also loss throughout credit in significantly in diluted compared a debt and measures used quarter our a was operating of diluted light the such China cash customers. per to we income value the provision we and XX, September declined million the as $X.XX offset in stock in $X.X million per us access in need fund expense prior Such an hardware of call. share third or loss the net that quarter cash receivable to balance comparable software customers' related of in increase year expenses, was today's result development largest whom have with We and quarter action ongoing agreement issuance December XXXX, million assets bad $X.X XXXX. showed $XX.X of the entity third the ended of equity from months beyond. the stock an executing to of debt of we zero support The $XX.X to year. quarter in prior $X.X recently de

common we stockholders to a mentioned, previously reverse XX% special potential convertible vital of and to a these meeting of continue of stock Shing of which accretion. pursuant stockholders stock vote the operational or As contract wins as favor asking more proposal our to on allowing positive and XXXX, line to split Approval X, shareholder the in are earnings holding at we December Ionic the of with access is are approve equity Ventures. to of us and a proposals issuance performance to markets, capital leads proposal credit to and debenture long-term

I call these request to As proposals. vote of a our with over that in And would Fay. result, that, the will respectfully back I shareholders favor too turn

questions questions. caller. to that, that With possible -- you, open minimum to lag with soon as and operator operator, Todd. with back turn the be between each the will queue time up the Thank We now so call there encourage back call the to as I'll callers conference we'll

please you queue could how with the instruct questions? their Justin, to up callers

Integrity [Operator And our Wagner Advisors. Instructions] will question first Steve from come Wealth with

-- much that this All all Hi, -- you. of amazing obviously, really so good is that a like forward time approved, that vision to it's had right, there any there today are fruition. announcements on. a you've you company is to, developed well. that to for Shing for and technology, Hopefully so management shareholders of call. about great to known a talked based you it can for queue lot have very that. coming the the like on profitability line here's give you've is to was assumption -- proposals team. everybody. profitability, alluded the business have these always hear you some looking Is I've Thank look able Are you question encouragement. It that my you And you Would that question to is that it feels feels and the be passion hosting able to and in XXXX? my to in the and be path executed

Yes well in the like a will the calls, how and think selling will our is We Like will, Obviously, ourselves, happen be certainly profitable. Continental very are certainly that next Europe. and think it with if UK we're talking the to of what on to it if reopens profitability in U.S. China continues terms just that -- software I'd we've way day previous then we we the on end I the we we -- short scalable the about working -- talked sooner in have solutions. And answer. give by we our of think say we're year about model.

model QX very our is we is to where our of profitable, year targeting are be lean scalable. revenue business and So next

is the mentioned Thank was from think, I that that call Did -- from on the had retrieved got touch I But of voice strained. from I that's a bit flu, time right? done? only a get saw being $X.X million. balance that has revenue, $XXX,XXX already is If is and that. been little is I apologize little a you hard China so come for the But I my operations. U.S. I business getting correct, revenue the of you today,

Yes.

you with the the that to much double in business people So But a National the certainly, bulk compared very will the the the The came were follow of up of lot given we year, which would And say were from with expect. that Todd we quarter bulk specific situation. -- bulk for definitely again, on breakdown. will certainly, than Party conclusion up -- happy economy -- China, the I than about more as open the seeing Congress, signs the China last sooner of we're number. that third

handling a instance, in that some very already announcements had -- seen couple positive sector, over very been property has to markets they're how recent has Asia response You've and for days. say, the with the last of the

yes. So,

the of just would our I foundation, is say U.S. to to kind business us basically, this another step So for here quarter that build grow in

customers. integrated the our with that very real, to have us. they operators VMS technology need and the is We We've show largest

and so next finish And and about across -- it's year, that. line. But so QX tackling and getting over blocking of really, the course QX of we're the very really just excited

for Okay. example, all on, say, update Can at -- at business all? you Brightline give the an

at point. certainly weeks, over we Well, we will this the believe. do six I that next can't But

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centers, No, Yes, subway Yes. supermarkets, high you think industries. a just deals across with It traffic. mentioned, certainly different anywhere home it as I metro, station absolutely. I touches of mean, and lot with

the certainly, much what kind center, Miami, I large York in in be Depot clear the very like to situation. it it of lot. lot that stuff home happens as a L.A., contracts where has Lowe's to, call, Anywhere bidding a like metro stations cities New past relates of quarter's Chicago, involved to alluded and City. in means Just I traffic a by for or we're And a we've Home think airports mean

that that our that's a So requirement potential customers need. something is

more we very we're works and well in way see customer provide vendor. be is it. solutions XX features will that those because type where don't to has Hopefully, really one that our the really technology to -- that. XX do even able -- work other groups we we the other providing to like just importantly of with But So us

the in Systems you out that this with I've connection Okay. or all super it the mean, that that, I'm And XXX other announcement. release anything put day, Milestone with this. have different a on would do got like read completely to But over it a sounded of intelligent good really different? is not I few times. They've customers...

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with -- platform, the so the largest to and we now Genetec signed the something deal customers, just you right? we them, that. very their give with two make that able push us to their much and But once of it's across So they faster example, were to Milestone So about can security we're are all sell-through integrate and to customers. an excited much

Any create are Okay, that you we shareholder at that bit time that? some to feelings tried a last this proposals challenge avenue can Have to all been smooth Remark get in make past. It's it the with on these the through? right. then time? guys of a confident has base opposed given to as And you

Yes.

believe it's always shareholders and so the do are we're do believe -- you're ahead. feel sellers shareholder in to are and the to right And have that base that out our short our their have they have believe naysayers that. we've prospects confuse and true hard we in confident I done and But try we there noise built through what see reason, shareholder in, base, we that sometimes and There handicap that. predominantly the you're a the have we if on long-term -- been think But that of retail we work and us. for kind building are certainly conceive smoke, about confident facts. and so the

of keep you line just -- contracted other everything until will terms give afloat the in revenue finance that And time any sources? these that Okay. you get financing. Can $X.X long million for how we

Well, So business we're I line, tap it's think this think quarter how we're it's have signed we see that obviously equity as and a that lot prospects whistles we But a bunch there's to mentioned, -- million within us the saying, a going thing it's bells where So end today rather at I right? allow able and to $XX shareholders valuations year." to of be to very we next favorable imminently the be of "Oh, -- that. to to them credit than what we'll will more or are able that a -- on as of much tap shareholders, at better of doing. recognize next that we happening

quiet want competitors where tell money because we is. don't the to have purpose on We been our

comfortable our definitely are then, we're pretty call, type are us because the investors we'll listening working so much with of past in very feel competitors. on so has until as soon, sharing hurt this comfortable deal customers are, who and to what But our And more them. it

sending Okay. final thought thought, One work, putting that to one having you the for They and times, mildly. of And are that's got the final that's fair challenging then Shing. -- it's Is reverse It like it you're feels with that like message talking that that. to about: that feels things things you're be conjunction in a interpretation? very but it do can thank like those Good lot contracts, news, out. split. very the some with just A of

Yes.

reverse operations speaks what really to we strong we behind to had split can a we do want our get This us think wouldn't unless fundamental We to really we right. XXX% where You're it. be. that's news and

your Well, work, hard time. of keep enough it taken I good. you. hard let's thank rolling. obviously, And Very appreciate team's I've your your work.

Instructions] [Operator the conference I'll conclude you. that session. question-and-answer the And does now turn over to back

hours Justin, through a Call. Thank XX in XXXX Holdings evening. Remark replay everyone, in for will available Third link Have release. our A Financial Results the approximately issued you. you, Quarter press October Thank thank be X you, good and Conference participating in same

you. today's excellent thank Have participation. We does That your an do Thank conclude day. conference. you for