Senstar Technologies (SNT) 12 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to the Senstar Third Quarter 2024 Financial Results Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to hand over to Kim Rogers of Investor Relations. Thank you, and you may proceed, Kim.

Thank you, Claudia. for today. you thank and joining us Welcome, I for hosting thank the Senstar Technologies management of today's want to call. With us company are on the call from the Mr. and CEO; Haubert, Fabien Ms. Kelly, Alicia CFO.

call point Before they regarding statements will, guarantee only or performance. occur. that like predictions, start, future events projections to in company's statements we this other fact, I'd future conference that These may the forward-looking and contain or cannot out are Senstar

differ Actual with not from assume Exchange to events well the and any Commission. including the or as a those materially identified information. the and company systems other filed of security as market may does projected, in Senstar trends, changing update results competitive obligation of the risks nature as Securities industry that documents demand the result reduced by

during the considered should which will lieu of financial the financial conference comparable and in of be non-GAAP certain course not call, GAAP describe In we measures, in to addition addition, measures.

our have GAAP press with requirements. measures G Please comparable note Reg release, in directly non-GAAP that reconciled financial to most we in accordance the measures our

to refer reconciliations. our at the most www.senstartechnologies.com also directly and comparable can You related for financial measures website

Senstar I'll go the hand that, over CEO, call please With Haubert. Fabien Fabien, ahead. to now Technologies'

us Thank an financial our results. you, overview performance. today Starting of for Kim. Thank third you joining with review to quarter XXXX this quarter

normalization by was component favorable streamlining year. point The margin was and recent X% XX.X% mix. driven markets our year-to-date up QX Gross XXXX. a QX strong compared representing is the adjustments, increased product same activities, the revenue improvement XXXX compared and the period X% ongoing quarter over price Our last to by at primarily in increase to in an exceptionally XX%,

diligent a X.X% XX.X% QX control, our of and expense XXXX, from better. margin gross operating year-to-date. to Due aligns deliver with gross of decreased expenses X.X% XX% our by or margin to expectation Year-to-date,

in significant led our operating Our and with a in decrease a combined growth to revenue expansion, increase expenses profitability. gross margin

We with verticals the in U.S. and X.X% experienced along our in core QX encouraging in and EMEA, increase a X% in year-to-date. a XXXX growth trends revenue increase

quarter and and Our reflects our the this growth our potential strategic tailored high solutions. success sectors both of focus

Correctional facilities. sector increasing for enhanced advanced the security emphasis public on driven for in security, by this safety. technology growing is Demand

Our in in integrated resonate solution U.S., to modernization. are sector, correctional well especially investing continue facilities the this where in

position Our as contract leading our a an partner, offering to helped have increase trusted strengthen wins. in

Utilities. focused security This for well energy with vertical solar precision. addresses on to across needs increasingly and with farms, broad-based as continues data our sector security strongest generation is integrating and our these The solution infrastructure. telecom one centers, be infrastructure, monitoring of demand as critical

expanded and data our farms large growth infrastructure solar projects assets. protecting also centers prioritize increasingly of improved reflects underscoring the our regions offerings, utilities EMEA, U.S. in integrated in scalability solutions. In and APAC and the This our particular, have vital reliability where technology reach security and

Transport.

of in development the Our established our been market the security, Infrastructure rapidly. growth adoption seen We've and transportation recognizes of sector in transport of where new priority driven in which systems. mix transfers advancing monitoring by in particularly market our and entrants, solution is particularly as a need airport EMEA aligns demand modern strong with The remains has sector, EMEA, Asia. secure the for well the technology a customers

continue ways logistics protect and explore companies opportunities oil Logistics these critical slightly, sectors and gas see gas, enhance operational and oil to we and in while assets. declined efficiency in revenue to and as

industry, North oil and the positively in future America in and trends contribute and gas positive seeing particularly this hoping EMEA, we're We're in will quarters.

that sustained unique growth. initial new and customer the sales impact their MultiSensor, ourselves our to MultiSensor to we're innovative positioning these meet in products value product's verticals in like sectors Focusing promising, enhancing share market. highlighting fine-tuning critical the solution on from for and the needs with I'm are core happy

We proven VP beyond help initial our future video build this on record a our appointed technology solid and focused new and track background presence positions of expand enhance in Marketing traditional market Product our solutions. to The momentum. perimeter with Management a and

strategy in half development expand customers also The key aim Our existing global across end yielding are established bring driving verticals. market investments business already new share markets remains We XXXX. in markets focused on regions. made the while to in second new results, we on growth gaining to users in

Likewise, new with scaling sustainable pay meet growth identified are territories strong out. our projects seeing being and effort to to in our off are demand it. We're investments now beginning rolled

this encouraged dedicated and to conclusion, strategy remains The are we've executing In verticals. team strides the in driving we quarter by growth progress efficiency. Senstar operational our made our and key financial

We're on advancing these we build excited delivering and long-term successes to as to goals. shareholders value continue our our

the to will financial and pass our CFO, please results. call Now Alicia, I review the go Alicia Kelly. ahead

you, Thank Fabien.

of invest U.S. X key compared third the million, X.X% Growth was XXXX. $X quarter but the growth was of an of XX%. the the of from sales of significant in for quarter of increase with third revenue verticals, in growth in reported experienced saw most sales the correctional in modernization. million was $X.X revenue as XXXX our We facilities Our all

segment. and in year. in the oil sales versus EMEA in Incremental of same quarter, and nature. this regions reported slight QX last the utility in sales but gas, an transportation declines Other were material nothing saw increase reported period XX%

versus had a XX% to versus all X% for third quarter other compared as X% XX%; in versus ago and change regions The of XX% geographical percentage XXXX a XX%; as the both periods. of follows: APAC, X% EMEA, North versus America, America, than of less revenue quarter is the Latin year breakdown XX%; XX%

of to gross reported margin increases period. quarter the XXXX. in margins in XX.X% of fourth gross compared in ago to price year The primarily of mix revenue, third XX% The and due product was quarter increase up the

$X.X for streamlining is the our implemented the in gross to million of quarter our and resources decrease corporate ago prior the increase of Our down third drove that margin we our significant year realignment in period. income The $X.X in year's XXXX. compared operating structure strong operating million, and the $XXX,XXX to quarter. increase X.X% million, expenses lower third The a $X.X of to expenses operating result were compared an in a

group our in report monetary than the currency the income year. was period and the the third liabilities a accounting regularly our in the Financial the $XXX,XXX denominated expense we compared of is valuation effect year accordance with adjustments of quarter financial in last this noncash currencies due of GAAP. mainly to in assets operating in entities $XX,XXX of a other functional of to third of This

of attributable third share or or per was net Technologies compared the in Net Senstar Senstar the $X.X to shareholders to a in income share million third $X.XX Technologies of shareholders to quarter attributable negative last quarter $X.XX $XXX,XXX loss year. per

of $X operational acquisitions. The approximately third the the $X.X compared was assets amortization in from of corporate for quarter expenses expenses to company's EBITDA Senstar's quarter $XXX,XXX third to year. contribution The are historical sorry, intangible million. -- million the the were last Added for third public platform and quarter

like of and or concludes XX, remarks. were deposits we That call to Cash would open per $XX.X now. $X.XX as bank XXXX, questions short-term my the to share. and million Operator, cash equivalents September

[ from [ question Instructions] The ]. from Danny first Levine] [Operator comes LevCo

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devices. every is basically, developing intelligence. working generic our like the we're for improving intelligence manufacturers of industry, -- So basically in we're our -- the on sensor the AI And word

on We signals working have Difficulty] My in video AI of already company. And we basically in performance the intelligence. yes. our and -- apologies some working strengthening general, So basically... [Technical and we're analyze we're knowledge

In forth? terms your of products for their any so is companies, in for terms facilities purposes and demand security there of AI

So everywhere from intelligence your bit requested I'm question this technologies. customers our solutions extent, getting we're AI our basically basically of available sure increasing properly. a more want the I'm is The and we're basically, least by solution working, need And on who for to striving at using improving intelligence. more

a facilities terms forth? to the they Right. is basically of so And for do the what ask their itself, demand AI corporations, sector trying and have product in your I'm securing that

I question. your So I'm we're getting fully not I'm sure apologize. -- do

verticals we're are So high and okay, transport, are well military mostly. The X correction, and utilities, attention basically airports very verticals these we're on X on the have on And focusing verticals. logistics, we're and focusing gas, to oil control. as -- border and serving we main

provide yes, on basically expecting us way more to us they're the to provide are -- solutions, and -- it. And verticals more those asking they're intelligence which intelligence using

] question & Liddy Co. The [ Ken from Liddy Oppenheimer (sic) from next comes Ted

I on MultiSensor? Do in seem you from Liddy. be the as growth This see impact to revenue wanted as is a in just optimistic. know, MultiSensor, material the to Ken very you XXXX far

the that is we're we So customers, the of sense which reacting lot number basically -- can we're and the positively interest to type interesting is had have a different not we providing we forward-looking generated some addressing. extremely statements. sales, for in What now of -- say of market of

it's secondly, of how think portion we're terms now. in But that too any So going ourselves early to we're not providing too are -- And first statement. forward-looking where we we much early it's is of -- generate. it's to all,

saying the as expect in profitable quarter? you profitability, given fourth in comfortable low to far the you that are expenses, be As

not the on the be giving we're forward-looking of we're statements at basically year. end So going where to

the Could you areas more of and verticals. mentioned a about market bit there. And some for your solar farms, you new Okay. talk opportunity little

plants, we high see in demands, it's which the And a we're absolutely. addressing basically, pretty there. farm investing raise of and green we build, we're to verticals. utilities. currently addressing in and farm everywhere oil see farm ourselves gas is part And protect And -- well it Solar a these company a of some within in we as vertical we big is this the -- lot we're of a the already, Yes, basically progress and solar solar world It's in classify seeing basically demand see much energy.

Oppenheimer. [Operator Instructions] Liddy from a is question Ken follow-up question The from next

I categorize as you expand have to wanted what centers. data Yes. on you

Interesting.

data for utilities storage what for for hard data. centers basically, center, is on-demand, disk where places basically all and So data syringe basically we -- which distribution host call video

So are they one that work. the

think I data everywhere. -- I very hard is think it's to be

foreseeing storage the of basically or So video provider on-demand basically or provide who big main services. category Internet is clouded the any

build bit high a you is provide confidentiality of and to centers data for requires lot It's of storing of would hard I a Then have type limitless. say where which banking everywhere their disk different data institutions, basically where basically services. own customers protection. a financial level

data third focusing party. That's We're small It's data the for addressing I question. needs. are not hope providing only protecting. large where own we're company I centers to These their today. provider, answered we're your centers service

and Have and farming, you of infrastructure the NVIDIA? of some centers, they for mining for I some the the follow-up. for a Bitcoin Intel critical like you did. Yes, there miners markets looked the do the companies have at like data

of but So among we're in those data follow are everywhere well. the as We request centers. on on people trying others, particular, those focus to didn't building

comes The question from next a who investor. is private Joseph Judge,

illegal track technology like wondering, some and your I that was play deporting think them helping will immigrants role you any down? do with

safer we're Never world on making directly. what doing We're basically... to trying strive and people in the

too. Thing got yet. get the that border secure big like I'm southern can including Canada, help I right, really the -- Canada, with with border, but guess, you And hopefully, contract not hoping border because their security know border, I Israel, some you Israel you've ours in

attempts. And try to areas So and we're we're on when whole between people -- safer. planet to the countries, intrusion we're sure there's in making make that entity, make working to worldwide we can basically on sure a X trying every separation Canadian detect X

borders this ] indeed, of one and we're markets direction. safer striving the the make world And covering, we're [ in is to

the can -- we more happy contribute to help, more be the and are we will our... it we'll the So more

in you at government look possibly that? because the you you certain And have some -- believe helping say, with Yes, down like part I people are tags. will zoom going the to any And tags? also to enforcement being track to of law their technology to by and people's able be federal play

in to to the wherever When information, action doing first mission and it players try it is other authorities any we'll So to not intrusion to the directly. What verticals our leave is, them securing we this take track report mainly there. basically detect it. we're we're duty is and to provide today or our to basically

Our nature. the situational job understand to -- today which is provide to intrusion there basically is awareness, try whether or or not an the

basically sensor to find of to with do is best then identify Our it an the parties accuracy, work the goes to other together attempt try intrusion follow-up who happening, where the work. and

comes Disler Holdings. Mike from AMX The from next question

an just very results, than more longer been I've a so for X-decade holder of focus answer. gratified done. rather question company shareholder, direct than time. with following well My As trajectory to the really the a and the your is long I'm

you vertical Ken, data you you And X questions you through power the your and to working that security spoke it just utilities are business, one is, as to of they for center pursuing, garner already utility you entree themselves. providing you that hand-in-hand center cetera, as but X as be an primary try ago to automatic the utility the who could both centers verticals. seems would therefore, of that And -- -- well have these the et the data providing the be as will data have be

and to to on I opportunity appreciate it. to execute. I'd in substantial. And ability And that way. But don't I vast I think patronizing have sound to think I'm point out. And I have luck just want you the the out. a if mean shareholder you wish is I guys you just trying now help any any comments, that.

much possibility to the they great power well the comment. this themselves, centers as infrastructure the because to the It's indeed aiming so of love protecting them. you on for centers Thank data why exactly top really we data give to transmit secure and data

strategy, the So we're we're our putting aligned totally efforts. where with and that's

I doubt. have no

for And you in thank us. your years trust and investment XX

we reached Fabien call Thank to you, closing have gentlemen, I'd remarks. the of like the now back sir. you very much. end to and Ladies Haubert Thank session. question-and-answer for the turn

quarters. for day. you management of updates forward a of good Senstar, you continued in the So and look our on We the like long-term interest I'd to behalf to of with thank support business. your more coming Have sharing

Thank gentlemen, does Thank that you very much. much Ladies so for and joining conference. conclude us. today's you

your disconnect You lines. may now