LogicMark (LGMK) 12 Nov 242024 Q3 Earnings call transcript

Good afternoon, and thank you for participating in today's third quarter 2024 conference call. Chia-Lin Simmons, Chief Executive Officer and Mark Archer, Chief Financial Officer, are joining me from LogicMark today.

During this call, management will be making forward-looking statements, including statements that address LogicMark's expectations for future performance or operational results, and anticipated product launches.

Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements.

For more information about this risk, please refer to the risk factors described in LogicMark's most recently filed annual report on Form 10-K and subsequent periodic reports filed with the SEC and LogicMark's press release that accompanies this call, particularly the cautionary statements in it. EBITDA call in reference Securities GAAP Regulation of including this measures non-GAAP Exchange financial on to XXXX, defined reconciled as G adjusted measures. made may directly to include financial Act the Statements most is comparable which of the company's contains of Management that time-sensitive is only as the information November EBITDA performance. The XX, content with insight provides that believes operating investors of today, XXXX. adjusted into non-GAAP overall this call accurate obligation required to or update that by any law, to as occur call. any information disclaims Except revise publicly LogicMark this or reflect circumstances events after

now to to is the ahead. Chia-Lin call It over my pleasure go Simmons. Please turn

in and improved key that welcome, Kathleen, pleased I'm we you, third to results delivered financial share gains metrics. Thank quarter everyone. double-digit with

Our XX%, increase million, revenue KPI a this period our to by $X.X the same profit XX% to contribution want was year. $X.X we employees XX% progress. consecutive maintained to the reflects congratulate on margin to and a last their gross last compared Gross X improved for quarters. critical I have the of and million

While strategy. to unit also and we these efficiently. still can quarter operate third believe go-to-market grow I our validate sales our reflect our have results we numbers much commitment accomplish,

of new is and because intellectual marketing products tremendous research safety all our and creation through the and our portfolio, LogicMark now work has We're hardware the sales personal done progress software great and growing footprint and of in systems. property in a solutions provider, efforts. making emergency team development, response expanded a that

XX/X superior notify the as end customer services boundary when there. care and that great integrated for emergency its to the device features. support the X-way been set service It U.S.-based has Mini fog well caregivers Freedom Our care. with received previously as for geofencing doesn't many These technology, patented dispatches communications detection well exits mapped include Alert

location and always-on the location features days, facilitates iOS service Also enhanced a services provide which app, days the a battery offers mode of has fog which in life set price. location an GPS in safety The both tacking of standby companion extended and for FA mode is and accurate a emergency Mini detection. Android. X terrific monitoring for XX for enables notifications, That's and on caretaker included

Yesterday the Day, served was faithfully men women our have Veterans to country. a time honor brave who and

to quality We working veterans' with to Veterans solutions of are continue the Administration provide that enhance life. privileged many

sales veteran with a retailer small expanding by recent our Service-disabled, Black channels to veteran-owned strengthens reach more even community Knight, veteran-owned audience. vital also broader service-disabled, and like Black in called business to play commitment further a businesses a Our marketing in devices the partnership our SDVOSBs small care essential more products assistive other accessible resellers ecosystem, to like health PERS role Knight customers. especially other and and the making

This to the continue excellent solutions those innovative new our supporting country. to to is aligns collaboration seamlessly base who expanding in deliver and potential growing given customer care with much have our sales. there our to Needless so say, mission economy,

market the of we problem caregiving only is widening with part only gap opportunity solved a is VA can capture. the with be relationship technology. can outstanding Our The that

be per XX Americans XX,XXX age rate X Baby over a over XXXX, X are day. By XX. in at boomers of of will turning the

XXXX. is for the $XX.XX projected to market opportunity So living and independent by reach aging, billion

Personal are safety a to in the safety we personal addition alone fares began markets. to our are we fear PERS company at afraid the reinvented we When Smart safety avoid a XXXX. to approach social to crime. high, outdoor XX% XX% Why? billion reach activities established market. night. ago, is market opportunity X have women due footprint of to also at personal $XX.X this by devices, personal In and X-decade PERS adults safety projected of transforming walk years the of

Since important patents. portfolio many and then, Directors, found of our Board product staff our and new expanded strengthened we've

XX Our focused May AI includes many patents and XXXX, IP filed that since portfolio of XX, ML. May on now allowed with and patents total are issued, XXXX -- XX

I'm pleased to that progress, the of attracting safety. in are are attention interested who our Given say we our many

growth on focus excellence will Our operational and sales continue.

committed are tools. leading-edge of everyone's technology to We machine by and implementing learning enhance developing solutions utilizing and life quality that AI

for to the Our us dedication with technology creating innovative proprietary Care towards Village a and drive care continues to building economy. forward solutions

over Mark to to financial the results. further call comment on I'll turn the

Chia-Lin. you, results. Thank team our entire The your shares third quarter Yes. enthusiasm for

increase Guardian to monitored Alert released Mini year. PERS quarter $X.X both improved the a Plus XXX sales million drove of reflects compared revenue last product of the Freedom Alert Higher device same quarter results. and recently XX% legacy Third our the

compared of fact, with the $X.X in EBITDA noncash FA in profit expenses to gross XXX of XXXX. attributable spending margin XX%, million loss the million the in constant year. from In was $X.X the same higher-margin sales net second quarter of the the add of units depreciation third last the Net quarter improved in charges. shift which over the quarter the quarter the offset Adjusted than third units mini Adjusted quarters. the offset in the the and with was year, loss to of operating And to in third over $X.X a last the million quarter an third and compared quarter year. last expense. was $X.X third the cost second in XXXX. million higher Gross quarter virtually $XXX,XXX, X% general flat with XXXX quarter of loss quarter. same for -- for XX% back compensation XX EBITDA rose $X.X million, remaining X,XXX administrative common million shareholders improvement in expense a stock-based last period $X.X Lower includes of was third same quarter lower loss this pressures. Total quarter X to The for products were was

was in the year. net share per last of fully period And net basis, same diluted $X.XX share loss a with on $X.XX loss a per the compared

As August gross approximately in that registered of million. completion And proceeds. XX, million in balance in reflects was our of the secondary this resulted September offering cash $X.X balance a $X.X

the this At I'd like to open for call up questions. time, Kathleen?

And from comes first M. question the Instructions] of line your Marin. [Operator

have I of questions. a couple

based the third So Mini, just it gaining numbers the you the Alert appears on it's in quarter. cited, Freedom to be traction

you're conduct So product? the us more specifically, you for a give increased you can And activities little what color on new bit you're did there, promotional thinking? what some seeing

certainly thank the On our Marla, additional has see sort as And of will pass fantastic Mark -- we in additional have if side, marketing ordinary. well product have out of actually feedback sense a and was, really well. as the he then that's a participated I to but activities, for created answer to product. it we off the In of, question. nothing we you sort of

our example, In features the space. business in, fact, one for and that government probably than competitors richer has better

we so what and very, a in seeing been result And of that. products. services as have going I enhanced think sharing active out that's the those you're very And of

So this actually sort mid a around beginning -- we product quarter. of launched of second second past of quarter year

the doing of really that you're out think ground and message product And services. sharing getting of that enhanced about lot a is its and improvement the and the so work there we're seeing I

positioning see message sharing are to that reps, some say some I you so with you that partners, the your when meeting terms accelerate? in mean just you that of of how you're continue with And traction when

absolutely. Sure,

of we our So on sales the spend a force. ground now time lot with

Speaking government with all, example, veterans for just administration. of the divisions businesses

really them putting competitors collaterals send the well, as the and one so in we've the our out our products really a are counting in that of it's we the It those marketing unique product And and from is actually the and that all features is brand-new of beefed differentiated right? up basically that system, product, market.

spending with veterans the spent on well. time actually Also, the e-mail, veterans lot pricing we're communicating basically competitive. as a as is so sort think, in we the how in small in small via business speak structure, them very business And that differentiated to sharing I the sort things calls administration really product that is, like directly a and time of conventions person, days, to selling of also basically different some the of

conferences us the walk have. amazing look, LogicMark that we veterans summer want really, product those this And about so unit and that's the to heard it do we say, we've I attended have when to think, and that in we've helps in the

We're And really are to we both as that's well. Related spending a message businesses store. media. time our this further so us in more enhancing think helped I message those social consumer in that bit enhancing our Amazon little side,

of and so actually And showing traction well. initial that's some -- level as

Got it.

Okay.

seeing, for push direct-to-consumer company that's just and So give with something I to any said a terms been you what have mentioned just the of know And about if on really I recently. follow-up sales, online satisfied early that sort or you you a there too the of growing Amazon store. the things Can are way color you're say? it's us in still you're --

satisfied never be bring Well, via going I'm ever. through. shareholder every e-commerce My we channel that to the more job to value is go

not through it's a on said, of go It too bit They a them. It's difficult had an early shipping that terms folks tell placements. platform those we for seller little to as is who to with difficult sort on. actually So I think do Amazon. -- are working experience to easy of in have and

certainly always well. take of as minuses bite and sort are And They a so out of pluses margins that. of doing your there

And and consumer. so reach the but -- methodologies sort the to of it channels reach of to one best end is

program may make of are warranty sort sure available of directly from that And all actively transparency brands version so not participating used that that's Amazon, a we're product programs not to and us the sort is have in it. people on the of of to on buying us different

We the things the are as shipping to quickly basically handed Amazon possible help channels. all very those us that doing easily as actually having Amazon and get of and the -- customer through as products focused on

doing of very and so work. But worked we're we're in there. toll anyone about lot a takes a excited ever it work who's as that it's Amazon, And the

sort to often of of I that to get we're through we're our succeeding think with is so clearly of working And customer. slowly work all layers Amazon to so. different challenges And the sort there, and

Okay. And a then bit. gears switching little

remarks your mentioned patent been you prepared growing. and in So it's position, the

line going -- down obviously, working you're the the now on. would time how you So how right are the you with about down be possibly potentially you to given potentially road, the of things subject on third are other portfolio the feeling road, to But what's some parties? thinking that licensing IP about have, technology

Yes.

We've are company margins along at for Mark in with I But great and hardware as are our actually been that that interested very saying also we're that's I seeing company. everybody and just hardware that really in proud margins executive than question. my industry. being that high interested since and that been working a a more ensuring working joined know, steadfastly software very technology think the I'm LogicMark, shareholders that on ensuring in they're we out all company. have we the typically team

first see the so visible very And on. soon, -- the we're very launches of product of actually of the that working a you'll one launch ecosystem highly

it's And certainly you're doing to strong is so have, patents building people I strategy. see portfolio actually not that this very of work a very the but lot happen with IP Oftentimes to an that file and a fruitful certainly, is company we we technology when that think products which you portfolio I basically coinciding strategic. think approach new with trying entered doing, companies, you're the that focus on We with the promise. build just

the we've put done so we're great it upon more this that stumble portfolio from also built they or to sort right we IP products of if our so some have one very would that technology people we've what basically we've so the strategic here make implementing, perspective an but to around license structures is very sort And from actually IPs that of likely for [SIPs] us and IP because want -- forth. don't of

about about which very been AI a and things, exciting. we're And building versus is and importantly, shooting an Gen of there's that AI of I we've of company. those sort think talk all portfolio. And lot And applied most AI thoughtful randomly very so

by stuff. caring if where that of photos It's to we're right? we're better, so work to see very because personal safety applied ones, learning that here fun. applications, is we excited see the wouldn't it and we text the loved want And AI of all saw ultimately, the But right? like health fun and and doing. to and kind application excited all we're That's about work that of apply into so AI always very AI our doing work all And the AI to be we're really the the machine

Great. last Okay. question from me. And

a of kind feedback target early getting launching a there. for Aster. product out is since your different you, demographic new technology of still any you too market It launch Or meaningful or represents it Aster? getting since Are way yet?

bit I make to tend a always market to adjusted for too is that well sure think early. everything It little takes that time it's really fit. product

sandwich of night, afraid who's one only customer. I'm I a probably As generation afraid XX% people there, don't walk much myself, little by a I'm as at one woman night that at and bit many of may of women my who think be on to to walk the out

as beauty the the a lot testing we've and so talking product, as we're we're focus adjustments product moving and to groups today, doing is of in of spent initial the many very new package. time And really product have actually of actually well to making the software We a where of is ways hardware the sort right? company that directionally forward. This interesting and is

it provide and of is a hear opportunity us back that hardware-only so sort way longer in we sort And loop refresh a adapt. to company, bit that feedback of actually gives if a enhance a were building customers of you to just cycle and from as

And so marketplace from constantly enhancing and product. basically get feedback you us constantly the see the

too again, activities in a of as take little early, product market bit you'll to the really actually cool so see us QX on And lot a but also new well.

questions. your appreciate So

over turn to for Simmons questions There Instructions] closing time. back Chia-Lin the will at [Operator call further no the remarks. this I are

Thank Board, investors. the you, for our for I'd In like joining everyone, to thank as call. thank employees well closing, And you, this for the Kathleen. as everybody support attending call and from continued

to strides significant in continue safety will We and landscape. the personal technology make care

our of the And As Thank website season holiday also for wish holidays, Thanksgiving logimark.com I'd be a loved to and ones. sure gift like ideas you. celebration. joyous we check approach your some everyone to for

concludes that for you all Ladies and gentlemen, joining. today's call. Thank

may disconnect. You now