Siyata Mobile (SYTA) 15 Oct 212021 Q2 Earnings call transcript

Good day and welcome to the Siyata Mobile Second Quarter 2021 Financial Results and Corporate Update Conference Call. [Operator Instructions]. Please note this event is being recorded. I would now like to turn the conference over to Daniel Kim.

Good morning, everyone. the second joining call. XXXX for you Siyata quarter Mobile conference Thank Glenn I'm Marc our Bernstein, Sales, CEO, by VP and International Today our Gerald Seelenfreund joined our CFO, of Kennedy. and

for questions will presentation. be We at all end of the the available

contained rugged to this other course will management Laws. of include, of to forward-looking U.S. belief statements Federal of our better behind we our that are deliver imply pandemic us, Reform actual Act statements industry. cause forward-looking performance XX, are handsets American and for the our and section been presentation on make, acquisition quarters; product Form-XXF results Securities from annual goal carriers; to be content involve but future North reflect this worst events we other elsewhere and known press than projected. ever statements limited lines and ended the offerings; company's and including discussed December the is as this reach in statements call. differ and report statements update of The Securities subject our see those Securities and that driving Private of in in call, and the to and The During our factors that are Such Litigation the after call other and and the XXXX of the have trends the to the occur risk forward-looking it. coming that to revise year-over-year accompanies call, factors interpretations or forward-looking sale that various risks to as uncertainties future regarding continue to this this the strong today. and the Except unknown year today to the risks, with may profitability not Commission across publicly those express those circumstances and Siyata time Siyata to timing required in materially or that of in of uncertainties any contains the within growth information any the cautionary disclaims markets; law positioned statements XXXX European sensitive and These obligation particularly that the filed is revenue we information will monetize Mobile's only product the by accurate strategy; Exchange Mobile all in belief able release strong the sales

over call Marc. Now I'd the to like to turn

were faced systems, into buses with XXXX, customers Thank upgrading yellow to business, Daniel. still fewer COVID-XX The it's in vehicles customers. not their a enterprise of our spilled and with in many volatility orders constraints. we due have space created to COVID over impacting remained spending in due budget is Unfortunately, in of school lots customers parking challenges you, our XXXX, communication some and with commercial key our their our

both we quarter revenues As in sequentially declined and our our witnessed results, second year-over-year.

and are we disappointed remains that deliver quarter, coupled growth continue to to quarters shareholders the quarters. path strong in revenue financial gross coming on coming are the higher we for our I to our in with year-over-year performance we While goal our reach margins. for strong reiterate, believe organic profitability the growth with to

by year to due The specifically This to one in in this booster in would of have handsets increase United offset this relates year the the Without sales in XXXX. the increased XX, mainly Revenues by months ended amount sales XXXX million $X.X million. to results. to-date financial our the in marketplace, six discuss for a the sales six compared return $X.XX in was compared of $X.XX we'll QX merchandise in return decrease of a increase from States, million, sales time XX% million. is the to to customer Now the months of similar $X.X EMEA. prior rugged June industrial year-over-year

For negative in million. a was of second year, Net prior adjusted loss to versus $X.X for net prior $X quarter loss million $XXX,XXX second was of million, variance negative million negative the quarter the the year. $X.X EBITDA compared the $XX.X

This items, push there North easy an such of an SDX. of America. rugged net impairment goodwill then items device of $XXX,XXX. million. would Siyata's have in been is or handset loss these a offer were as Siyata $X.X IPXX including and device If and device its rugged Subsequent is However, million, impairment next to generation number we designed quarter environments. rated of PTT-only we critical unveiled impairment will second million, MCPTT. device, intangible in work first the is is to non-cash $X.X SDX to The inventory exclude also in use is $X.X talk non-cash harsh to mission that rugged first Siyata's the quarter, the adjusted It that

North in hospitality market, in cellular dealing we're multiple new innovative SDX and to unique also networks, this on this launch increase utilities, XXXX. As in we market, carriers With device launch the during this MCPTT and quarter, to the management. America expects in to transportation, then and SDX expect first their with device, not its but waste responder in only Siyata Europe

market been months year. last stable the in XXX% has over up same and first XXXX, growing of Our U.S. period with the sales in the market six booster

quarters quarters. believe we to in grow first multiple be the which both and as will rapidly coming government responders, well federal have customers, opportunities this large scale state in we continue the QX that will as We and closing expect market we with in following

to then and like discuss Glenn industry will market our discuss of back various pass that sales who line business, opportunities. Daniel who some would the the Kennedy, benefiting trends to I sales, to VP Now are dynamics our our will and

Marc. you, Thank

more it XXXX markets. a cellular last at agencies. two numerous announced subscribing American sixth subscribing positive marked we least FirstNet, over XX,XXX This July the at network with Over our agencies. dedicated each trends million quarter X,XXX In than connections to supports one consecutive have least FirstNet of connections for the years, experienced have and reported first new XXX,XXX responders X.X in end gained

the advantage base appreciate and FirstNet by mobile land or on year this solutions. we innovative grown push the cellular, to connections As are LMR, with of we the subscriber X to market Compared million continues subscribing well-positioned trend X,XXX Over our to to last its has PoC. agencies capitalize talk or over radio believe

X.X% perfect benefits the product any suited line, ideally the including in to shift Marc innovative from SDX from are expected LMR. to Siyata's $X.X generational discussed, CAGR, in phones, million grow feature PoC. offers market the rugged LMR or $X.X service According a SDX of As growing that is while to helping the million to Research, the is smart managing PoC than is of market PoC of of from difficulties current and generation at without XX.X%. PoC double growing is XX% the the the at XXXX more XXXX. LMR And shipments VDC annual upgrade to as

pass recent The in and every workers, that to With line robust shift As and of And growth vehicles, mentioned, consistent Virtually for to also the enterprise a XX remote previously roughly the Fortune environment, secure signals. other provides strong our increased enterprise is been not who demand enjoying expected to double just million security companies is been cellular reason for XXX have for home and is demand. number in government. sales but cellular Approximately are to globally I'd robust workers conductivity year. like the any this discuss benefit from the wish with that, complement has connectivity. booster these of enjoying. devices by sold industry, we who communication will by more warehouse XXXX. utilities driven business success Glenn trends can This cellular

Thank you, Dan.

of sales Looking sales product we at potential three each in see to our strong our funnel, categories. continue

we category, have devices projects due continuing are hold to put in-vehicle our with been in that trials XXXX to conduct in on COVID-XX. First,

their wireless who have with international us a seeing addition, XXXX UVXXX ended agencies device. has UVXXX, trials from in the ordered we quarter and the in including government We a our and the new initiated local previously is U.S. East several with after in and large ambulances purchase are fourth state Middle for demand growing proof-of-concept order in equipping additional carrier from country

larger across first million we continued three a Just releases released QX in-vehicle $X.X demand solutions. press and a shows cellular contractor also our of and than three defense POs unique for demonstrating after responders, totaling more handsets This our distributor. rugged

innovative device that trade new North rugged category, SDX a Secondly, critical handset supports talk shows carriers. been is device push rugged have traditional or carriers it and asking capture MCPTT key radios. to prelaunch carriers The IWCE. recently for has handset strong the to been because at cost device, SDX in display been wireless our using we two And kind from that American APCO way effective announced the we and wireless customers the or the two new exactly industry feedback called wireless product who have mission have to LMR of unique

and international SDX then category, American a quarter. quarter, throughout the to for U.S. and boosters and to in our product half cellular demand in Cellular cellular saw handset to major thirdly and first is objective our launch selling North in carrier quarter XXXX. with carriers rugged Our begin we launch new the additional continued the expanding this of And our booster following

called what we in their hope for Silk with categories. a to We're customers be state growing placed U.S. truly our we're will now Inc., recurring And leading on we're by large all signed governments, unique quarter based Just the we orders. our purchase very expect of distributor Worldwide Overall, pursuing first hand both seeing after adoption back solutions. the disruptive line federal with Marc of many and they which we new of booster responders, some very product first cellular all coming today and to pleased already booster the of I opportunities U.S. based acceptance what online remarks. closing expect will of rapid close continued months. have the also

laid growth, XXXX. the Thank strong confident foundation Siyata management will is for that you, Glenn. After deliver growth in having

solutions a continue multi-million we're that we that our volatility, pipe for continue especially to ours, In all business base in exceptional momentum a very with of the expanded this While three with a pandemic leverage customer innovative all are the our robust proud complementary. disruptive, customers summary, in provide will strong growing, we and categories. company very as of is have may like is quarter-on-quarter product the Management we it's team, pipeline. seasoned company which sales particular, hopeful offerings, product small for and dollar our of created refreshed our believe create

sales and to be a customers, will which operator to our also believe quarters. our on remarks. balance stand will for which opportunities questions. XXXX by our continue the next deliver excited of and capture We we and our the are of believe game That throughout generation goal reaching beyond. very kindly market, formal hope a we solutions, to significant you. With profitability concludes the that, focus changer drive SDX, We to the with coming including growing the Thank new open call to sales Siyata, in

We question question-and-answer Please from will Moore now the [ph]. Instructions] [Operator go ahead. Our CFA comes first session. from begin Tim

nice have third here. quarter any given September's Tim can really see. of can maybe to four how was markets step important maybe Moore that us and know Zacks. the color their other Was sales you if it from sales I've kind been? a Australia been And give similar get level that finished? on quarter you back, or down inroads take maybe dominant The is I'm we might times wondering Telstra to company granularity there Congratulations to on, that. magnitude if first to just this speak some how week news But with to

thanks so Okay, call. for the

that not it soon. an for it's another, years. I one want something it's thing that this important big since you because First X on did think least adopt a the also that -- going can anytime for even We are Android so to and run Telstra period. we we continuing operators of will good it. us because shows allows with upgrade And to we we're launched two be end-of-life to at is it's said, say all, at is with go and product, very today, with that us, or launch device Telstra offer and least it that we actually to be it very relevant be It's to with for long And the working to for to it it UVXXX. now customers. a XX Android us. And like device carrier And happy think

better in be than of QX QX right? QX, course our QX, products. call Regarding said We adoption on a We the all three sales, see good this and very categories. will do of

that's COVID our very, business. are working their using that's they're kicked strong. business connected, in more of see from because so been boosters And is to booster have more they and people very we Our need very part and warehouses since and strong home

get Our we very, orders have we're waiting UVXXX, to finished orders, very we and or are large we middle just either get mainly getting in And our that but And we're trials product, of trials, the still the That the the in scale have, were rugged that orders QX. for sales budgets have again that done; the totally that main to sales we've customers some we Europe. the product. pipeline But or that still sold that that to we to in got that in markets said, And actually large year. so sure product. But getting we was or after. were handsets some make we're decide multiple we the very trials until us Those handsets, dead I rugged market in very QX, like were Israel. now, in last a our relevant. it's for going adopt

return at you going they or that you I significant to saw phones the And tell all. COVID can of those that not did it a in very, see we products were markets. you're QX. During that those same see rugged customers relevant in way buying But very

for we the the and before, market. to to going opportunity That's going us. specifically QX, new going for and SDX, American see You're be as totally forward, in North it is QX, because a mentioned

to get in QX. not very on a able definitely our is And achievable around we see that I we to quarters. It's think that's that that to mentioned that And times I And categories, get call, in I coming think all we as getting be we're It's can possible. we something that, a say better on And the in the in in revenue that if as said, going profitability, the is profitability three So million like you're think the to sky few traction. reach had goal can't we basis. QX. than quarters. to reach pie a dream, it's To to. $X.X coming have it's quarterly

Urgent to pretty impressed webinar catch no, that's the in a color had and to No, SDX Good on helpful the August hear. I was chance it. Communications by

you what XXXX. sales kind wondering, to can next and successfully maybe being Europe maybe just in expecting America out if you're I'm that either if Now, you speak trials year. you potential Europe of underway North pilots confidence know, And to in on in for give they're rolled already

Yeah.

States, So on, States. we in have leading multiple carriers with going the United United the carriers both trials in

starting trials Europe. now are also We in

will So the I tier. think is that follow going Europe it second to States, United be definitely probably

we launch a tens units the the The the price is size in from of year, would very, $XXX, nothing potential market, scale, of you going that this believe to not color. well Sometime over question level going to the very year we'll mission market. of is around But also we're to device the in be able this in just year. level. critical market half for large the the even thousands first about anywhere the push market. next lowest Europe. is price to be is being your give units to to of There That be on talk to cost XXX,XXX a hopeful that scratching That size be is of it because that this

would units XX,XXX $XX units $X about be million, about million. is every So XXX,XXX

second be could responders, very but to The not also push carriers all what yellow second also AT&T utilities, interested the called Mobile, very, are that buses, interested And the could in is Verizon right? it with also responder responders, into in Those responders. best first it responders. management, both are and critical market. first first TNT drivers, tier to FirstNet device. getting way first is very, waste a And first talk they're mission considered it only could very do tier and of All school be be

is the perfect because because this So device it's in LMR have the case. you to, a from upgrade don't very unique,

on past saw very new the right. radio it's a the for upgrade, device, them you XX If used taking years, that's this very, webinar, easy for anybody

You you anything, have push don't button, the choose learn you it. to really channel, and that's the

So in that think other Europe, in that very, in sense, the a And has starting large even selling right Israel interested extremely we're in markets global now, to trials markets are they we We're think appeal. very that soon. that it scale And and going we it this be has product. potential. in in

that's that for product good us. think we be So very a to going

last that's helpful And housekeeping that. similar my it's quarter, into a hear actually good is on I and noticed very the in of impairment quick you're impairment what sized question. the quarter this really little slow if year it color just quarter just question inventory go was a you to now taken one on maybe the last to with Can And impairments taken and pretty light moving fourth these inventory going done all forward, you're a this the shed the maybe that product. for comfortable commentary. and

to felt To think aggressively it doesn't not still there that it fact of forward. leave had was to nearly if few don't impair we we're we product. happening know, we're throwing that this and it conservative Because out this see that it that rate it. your again, enough, sellable that on was or it also they they question, intangibles, that we amortized to And and the just be we UVXXX, sold it's out, that that lower be the believe of mainly a it's that that the the and mean done able of our A The quarter, that said, to automatically years sellable. we substantial intangible selling on didn't in in not going saw forward. those the impairment them lot have that we devices impair some you that, accountants one sell like not if least still also And have sales still we it another over and two think at is going QX, they okay? years being inventory even and inventory. they And was not not going and because I we by feel size impaired

to any like that be you're not coming So the write-offs in think sensing kind that question, going of I to your quarters.

That's Thank questions. I it. you. it my appreciate for

Our question from Instructions] next ahead. Group. [Operator from will Maxim Vander Aarde come Jack Go

good better And guys. kind quarter. But a morning, you've new Great, product answer where returned. of questions quite this. details into catch questions. more any a I Thanks order customer is discussed, taking already product that to understand detail, I kind didn't wants sure to of that with just then category I'll some now. bit on not I'm so they're what of couple was growth and for the my ask opportunities, maybe about dug the it's on which And start your located and who want return that. in but greater customer

end. sell winning that customer see common to something buying Yeah, they they to And we not with took them. States. because the wanted had that tender. us They Because devices business. it. them taken so at tender up were asked felt you're were we in win they they large And year, keep are working in going therefore us. forward. They it's tender the last win our we scale And a that able they they're and that still were not to to not it the ended going a in to going relationship customer. it's U.S. that And not they allowed And that thought to going That's products that all it. from return then return with other And to United product.

and So with. back. thing. can customer agreed we're sell to And working think that through we we it's And reason that's that it's actually we onetime again, of it's that take a it a a devices the lot still

color the Okay, there. sense. that Appreciate makes

and maybe overall of terms in gears the where Marc switch the you're of it's where sales in me kind you then to for heading at Let we're team, today, again. headcount

you and overall So I think around people, were headcount? force earnings XX is today, sales Where's that, headcount for last particularly, where's call the last something headcount. time around the we at guys like spoke, in

our they those force, sales want So people I that's we sales. is for altogether, all another both sales. do and and sales online technical we say have to people two eight in have And support then that

our with too feel during directly we part they the big people two performing. a past is go now, not of very And let that that because sales headcount. big. of too think the sales six we We But right actually months, online to business good We So consumers. boost we small. that think felt don't it's don't it's were our

have also and understand person because AT&T if is a with that You he Verizon, with somebody both AT&T. who's working can't working speaking AT&T, to be accept not Verizon will

for for a been sales very for We person AT&T, we've we a which sales T-Mobile, have we've sales to into. Verizon, hard get specifically working that a person customer a person is had

who We We who's sales. two that the for on work Europe Canada, Israel people sales, have right? have does in and and also in international Glenn call, those

the that accounts. a lot sense of bit of people general, lean don't We're in very a color. have we in on just the So little working

way people one work has that is two person we are want business for be have to And the if for that large the to us. each these have then with You it set up another you booster doing which account, carriers.

working that booster we are sales people the So accounts. two on have are that

that we So sales again, up breakdown the -- the have force. sales current that's But headcount. able both in we'll sales and the to our R&D up not side the and the logistic in have on the and I place, sort dramatically side can on ramp side. sales on we And side up of think ramp sales with the be the and that team ramp of to on support

helpful. And gears Glenn, Glenn maybe then order appreciate purchase remarks. for in well. mentioned he the for That's UVXXX. quarter prepared I a mentioned after fantastic. fourth just I'll I quarter there as ended the you the the second received because the this for you ended think Okay, question your switch color since

want four after included that on was that, quarter in to second that's purchase Just get is that not clarity orders the -- revenue?

actually And East Yeah, placed a they now stages Mideast XXXX. customer. is different Middle have customer, four orders thanks, customer That purchase in at Jack. beginning

different So a of as ambulances country. been products throughout are those deploying they've variety phases in their

it's time. encouraging So encouraging adopting entire it's perspective, and them out hundreds they're us, multiple not not a them and to ordering It's understand, order love throughout what organization. we at our are And from because because to that see. that's just orders. It's repeat customers small onetime quantities. see their just rolling we we a It's

Great.

no, is I makes too. good question. a there sign. then sense clarification maybe appreciate just as Okay, one the makes That more well. final that And that

upon game your in Marc. seems of your pretty a touched this Siyata this America, like You've quite of what catalysts. terms big of could -- a But changer it and growth revenue bit penetration terms the already, just be SDX in also on

the So hand sold in haven't your it or SDX at or later point, all ruggedized on this been at like this sounds devices in least the until U.S. year.

portfolio your have we your in the whole, to represent sales actually will now U.S.? products there. mind this full the U.S. color any a overall will in as Just just catalyst, So a jumpstart of because

Just help seems get could momentum. like it's the synergistic, really to

around So category, going we're least being it's that what again, device. the card, very device, that good handset month, device, to a being Mil saying a great telling the a the operators the and, from us takes device It the absolutely. and whatever. including is the is This I'm that are not to vehicle the That's selling provider niche a out including that rugged, that, Spec device in we're with small cost going SIM push-to-talk, a at. it's to customers player it's a cheap but and it's okay, come us answer it's The that's including expensive a okay? to pricing and device, okay. It's Absolutely. $XX

to and same construction So XX to necessarily think connect time to want speak give be to about the their they a to All XXX Samsung do the same didn't time. company. for at They them able an device. want $XXX is people people at workers

So saves for very are device, literally going right $XXX pay in using card And we cellular as give lot SIM if have what it's putting companies, to right? it's of walking security a able an customer now be people is the the want that these device, carriers, handheld an now have going companies, on doesn't think a of them a utilities, it's -- right card SIM that's away customers subsidize. basically there's again, AT&T them. solve much. can The It's And radios. other instead market. parks, that to to responders, In radios of you endless inside, can not words, their tool device And to effective. They $XXX they interest. the that around it's construction hand, it's to and we it's it's literally are be take get their to the a with sell hospitalities, amusement cost first -- it's to

going it. is most the the this least expensive way So least, to do be to

obviously And So it. excited. going be major been we're time on it's changer of us, we've we're for for lot we've you to focus spending And lot been we putting of tell on it. us. a can think a game a And that very

the team on from Verizon follow-up so a rugged Great, actually the Or do you -- you or sales organization under asked one front, that. this that have sales categories? it going to how handset product sales question sales And relates a have perspective? wireless team? of about multiple carriers do you this and -- each fall selling for my sales first I to kind you or are of this dedicated, Or the are leader kind for more just from a

question. great a That's

who's charge, of have account. person in the He the webinar So on DePue. AT&T a charge if you the Jason the is saw named in SDX, we guy

the it train SDX, now sales to be UVXXX. able Okay, sell be AT&T his to And And going he selling sells customers. their to is okay. to he's people to job

leverage a be go So there's units, AT&T obviously don't have that so customers, try get sit down the sit to with UVXXX. our to to with it X,XXX doing buy and force they're he's Until AT&T down their go do to And wants customer to a take every the to sales then and customer close them to now each we a if with and to right? able to that end we device. going customer he'll been that large to few

products have in going Now to his portfolio. he's two

Okay, thing we had T-Mobile at we thing had independent. the the the Verizon, are booster guys same same and

do They're guys market. booster to dealers, across hears is to that's they And do, they're boosters, Jason carriers different But boosters, he that's two opportunity selling the it selling an area somebody to selling over all and if comes is across also they So those to their not model. they that it. our or which guys, will at needs necessarily booster expertise. a pass sell sell All that team, AT&T of the carriers.

it. Got

the Okay, touch. that's and appreciate forward. update, helpful. the in going very guys you Wish quarterly I be we'll best

I Thank appreciate it. you much. very

any turn to This Seelenfreund Marc I'd our closing back conference session. like for over concludes to the question-and-answer remarks.

Scott. Thank you,

much a quarter this do disappointing So to coming the that better we us. we're think for going But in is obviously, quarters.

us our portfolio, will in that and reach our coupled And focused, portfolio to we grow exciting as profitability, And have goal dramatically those together, that are laser an think said, to main I customers. the quarters. dollar to multi-billion two base, product allow get to coming our and we the product assets We company customer is we point. have

change going questions this that we you do much. around it's to company. and you anybody would pains soon. the as Thank turn that at view ask very we me to like call, you're me growing very believe of and a much, small welcome email time. Thank very or any to So But after more call

thank The conference has today's attending presentation. for now concluded you

now may disconnect. You