Boxlight (BOXL)

Mark Elliott CEO
Takesha Brown CFO
Michael Pope President
Stephen Hart IR
John Nobile Taglich Brothers
Allen Klee Maxim Group
Hunter Diamond Diamond Equity Research
Call transcript
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Greetings, and welcome to the Boxlight Corporation Fourth Quarter 2018 Earnings Results Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. I would now like to turn the conference over to your host, Mr. Hart. Stephen you. Thank Mr. now may Hart, begin. you

Stephen Hart

to about Thank you webcast at fourth everyone approximately the release and access Corporation’s X.XX Eastern. is available Welcome operations, and of for considered forward-looking much. should are strategies was year-end being replay. today statements had now, is securities including to quarter By our XXXX our include Boxlight laws that relationships call. In of press potential our and call very partners earnings issued earnings will the remarks This opportunities. future have forward-looking plans, which conference and and statements the business market today, meaning results growth we with within and resellers

to addition, your questions. In make in may management additional forward-looking response statements

based from and today, knowledge A are forward-looking statements most may expectations certain and recent current materially management's are detailed and of are the risks uncertainties on differ the our of cause to risks and in and to uncertainties subject such contained statements. discussion results as actual Forward-looking XX-K that with us with additional will The to obligation analytical measures to undertakes no operations. call, in used forward the update provide On refer filed and any other company to we looking our understand non-GAAP SEC. GAAP statements. Form results combination when reports this tools with

call Mark Investor hand the measures reconciliations Elliott. We Officer, the the directly of press section to our in is Boxlight's financial that, which yours. Web the I'll release And have Chief be site GAAP call with now to to Relations provided comparable at Mark, our will posted most Executive over investors.boxlight.com.

Mark Elliott

good afternoon, Thank you, and everyone. Stephen,

fourth productive in you an We with had extremely again. the eventful XXXX, and We’re pleased to speak particularly quarter. all

the Our important and the continued strong after fourth quarter. back-to-school through momentum season

greater record the ended last million, exciting the XX.X quarterly Revenues XXXX history XXX% million, for grown adoption product growth including across up our for comparable XXXX the quarter Revenues key the successfully last increase was in markets existing continued year. our the in year and period an year. our to and network. of same totaled In to benefit States our We’ve fact, international quarter reseller $XX XX% sales of over pipeline product from company. United a of in the it want compared suite, Africa, revenue were and clients continues introductions learning largest trajectory dedicated help Middle time product through student our thank at growth sales the Latin with in history. the introductions, opportunity our Europe, Boxlight enhance outcomes. see classrooms, partners. significant and supportive to our to It has our in East, network future strategic the a India resulted into is an pipeline through reseller which improve in employees, our growth and continue our to We mission acquisitions. to and America, our I well engagement educators and in trusted

who to do implementation customer shareholder new the the was are success, for we do market, how test build value. is XXXX and technology best-in-class bid advocates. with greatest competitive we greatest is we delivering wins and successful have what doubt and our it we received without we number contract customers a our of Perhaps are to huge do work delivering beginning interactive the award-winning our a and just continuing and there While much the solutions education is global in the know to this

United needs review encourage Our We believe and spectrum right be to podcast sales realized allowing the site our complete available differentiator provide requirements. with States letting our they the our customer to and across consultative meet solutions. the partners for our customers’ channel approach a and Boxlight and customers unique our to strongly wide is you globally. Web on and from and Boxlight the value results and key have chosen in partners the have solution articulate We respected solution testimonials channel of a they why schools

United delivering the cannot criteria Connellsville schools mistake public to in expectations. provided is children. our the school County, testimonials and arena. more prospective Enterprise Georgia; their in of California; who their Customers plus recommendation clearly County, and sector Beach, They and a provide Huntington in in consortium We Kingdom a partners. are afford with Happy educating Trust, Carolina; to Pennsylvania; Tennessee; they’re achieving District School exceeding Buffalo risk are and make they results our and like schools Clayton and customers importantly are Boxlight simply Area their critical to misappropriating charter Beaufort responsibilities essentially have New willing hosting districts selection Academies share York; the XX McMinn glowing County, South in have to

Connellsville environment. is learning them Area thrive XXst school District, replaced a example, with from flat help in projectors that its rural south School to Pittsburg, Century CASD committed interactive existing CASD, Boxlight; of large tools X,XXX students panels For with would has district a providing

of in implementing As the district field XXX program is other Chromebooks teachers and for a the X X flat and alike. and of myriad that interactive playing technology a tools panels students part ProColor level with invested that to commitment, a help

Carolina’s education of Additionally, current School interactive District in the powerful Boxlight classrooms environments, with initiative of technology. hundreds transform with leaders outfitting latest into this in as Beaufort technology part rich partnered classrooms to South learning County

XX the addition with OnPoint of and evaluated. classrooms then technology Boxlight bring panel Boxlight suite to partner comments other for ProColor I and from lessons. technology engaging in MimioStudio installed selection is were Georgia. was the ProColor a was dual a district Beaufort district. classrooms was results know partner district with million include I features achieving solutions and and recently size seems content Beaufort the services. followed XXX district the a process to the collaborative such more touch reseller formal classrooms a solution, of forward-thinking Labdiscs Touch Beach flat throughout were, told, $XXX regarded products, their ProColor assuring and first to vendors visiting the Boxlight rigorous solutions that for visiting hand for already is District. because creation schools delivery degree them impressed County satisfied in this a to and in expanding collaborative replace learning. including driving students with very their XX-inch, encourage process onscreen new with favoring customer of it District The single tables, in XXX of from classrooms. with The and School successfully definition for large Nothing bond nine evaluation gestures technologies and where process. MimioSpace XX easier simultaneously touch the to support and points interactive decision success. Its is and aims expanding XX engaging installed a evaluation collaborative to allowing MimioSpace as reseller, users X,XXX or district spearheading has Boxlight The approved installations. The environment. purchasing Boxlight approximately technology highly All collaborative touch to the more XXXU the interactive many a initiative. XX partnered highly in interactive systems existing County as quite panels The California up and initiative Huntington is by ultra-high Huntington premiere is result technology its BC even their School classrooms flat similar in interactivity Boxlight entire Boxlight district that collaborative sells City work provide see, Beaufort order transform so like County in hosted visit the learning XK-clarity displays displays’ also Our The to to

Georgia standards of are leadership Clayton and we ambitious Additionally, with district. high respected has the team for the Boxlight a Clayton X,XXX are of partner. has over is schedule tremendous on are of budget Clayton XXXX. students district on fifth-largest and plans since and the Boxlight nearly recognized and to their County with highly School district advocates state They total solution and another District, proud incredibly their classrooms July be with associated in partnership. installed XX,XXX especially very Howard school that as

district. made great future lot far XXXX. We will progress the this thus XXXX a of in outstanding in We in seeing and be from things

Some improve IT from creating will Google’s NDMS, the MimioStudio displays, Network our instructional Management the end-user refreshed live award-winning Boxlight widely-used G web interactive Boxlight can and of MimioStudio an of new control has flat their displays. research of had that and experience add Device recent months groups of web Education. individual look the contemporary to the be with the prepared been panel with gives interactive whereby a lesson dramatically. and integration centralized System, for in pages beyond updated controlling Suite enables interaction activities to NDMS and administrators we’ve Also introductions Mimio managed process, products which Live with XX allowing which of and network and events dimension pages undertaken. include scheduled also one introduction Boxlight embedded and place. be the

we Peter with Additionally, XXX designed Lambert Nigel a announce Boxlight developed activities partnership table. collaborative to ProColor and collection two for sequencing, developing internationally allow solutions exclusive labeling, for the touch touch-enabled proud skills the timelines. sorting, in Pearce, of this an interactive MimioInteract, market. engage activities recognized activities MimioInteract These matching, and essential software leaders in for students. with We K-XX build and

provides Learning students and the teachers with that school an both alike. and preschool for combined limitations. highly robots, to to STEM regardless Mimio K-XX and younger in and and classroom activity for of provides the is tutorials infrastructure interactive Mimio MicroCloud solution robotics software connectivity helps an anywhere receive activities. activities range to is passion needs. type modify make exploding lessons, globally MyBot, The product for cloud-enabled develop access curriculum, videos. these high or innovative are and students and complete cover robust an wide sector with each own a and another solution with skills educators curriculum. addition, environment for students even teachers out-of-the-box Through to are any in-classroom proud specifically a secure them innovative announce their ecosystem programming for to it new WiFi learning assist comprehensive to allowing a activities an the robotics. cohesive sample curriculum, from creating excellent that Management powerful Builder students Activity Mimio various collaborative of In a Internet These STEM table’s designed complete we adjust content, program has height lessons with resources The and Robotics a in platform ability MicroCloud and and existing The a world System and

partners rapidly older full clear technology We’re STEM replacement collaboration, Technology coupled and interactive world. acceptance group learning future This mainstream industry growing special among tablet, recognition The for of is Chromebook, environment. of and the demand there’s the districts assessment, technologies inclusion to Boxlight as and in to that growth. best exciting is the of such the and suited of continue school as instruction, across a differentiated whiteboards our will solutions fuel swing with [indiscernible] our and formative small products

at very optimistic about future We’re Boxlight. our

have incredible we proven Education EOS We at and industry with and onboard position complemented recently Robotics. that has with Qwizdom, talent been have the most Modern brought synergistic Cohuba, mergers every leadership

have our have claims and available total that with the proven anywhere. address a anyone market that needs services also offering growing customers than deliver sets results. statement, and better we solution dramatically best backup We products a With with solution real we tested, to

they blessed because not complete arena and failure then They recommend budgets incredible on the competitive and partner, the a Boxlight allows winning total also family and extensive with provide them who requirements to of is with select channel can solution to bids pilot We network right objective public anywhere customers’ Boxlight an is in because they we loyal and where option. choice solution that the consultative. value listen chose are an the all providers, best in world. be have the and for have a

to know our they we that’s over and continued Pope. recognition a and we a the success that, the partners our happy will President, confident turn With and deliver how together for we long that performance, channel customers solution are our future. term, successful and develop company referable shareholders, Our trust of With for team the customers Boxlight’s and and I’ll for Michael team employees. it this

Michael Pope

robotics and software Thanks, STEM Robotics, focus ecosystem Modern with developers month, will programming company Mark. focus on Robotics and K-XX developments. and was platform fulfill MyBot, innovative acquisition the Earlier passion to including learning a robotics. tools a them students graduates educators programming classroom. recent teaching this cohesive our will curriculum, robots, the of are students help STEM market. of in school other Modern today’s these My MyBot experiences for tutorials from announced receive educators, a videos. investor comments the solution cutting-edge a develop a K-XX Robotics M&A and By Boxlight’s engage we education strategy emerging education lessons, recent robotics create the that in workplace innovative we Mimio ready in conceived skills today coding are and Modern helps and and Through and to high for out-of-the-box to need powerful with and and the bringing complete who of hardware solutions developed that STEM software an robust in preschool meaningful acquisition fields.

innovation, brings organic of than of Over the robotics Robotics Barker Stephen years produce fourth our The an gross will Stephen in addition management of accretive of months. Education. and significant with trust The robotics that months, growing we through Boxlight was Robotics, are XX delivering extensive technology acquisition brain profit for in Boxlight committed wealth revenues our we strategic X the also adding XXXX, including to incredible complement who developing promise. more it’s greater brings acquisitions in by in and margins the accepted to sensors Vice STEM and our XX has than November of experience President talent and IPO Lego next expected on that role STEM last have Boxlight’s and programming XX Since million of over XX%. offerings. acquisition components growth Modern to

and selling provided Europe. like successfully United has suite a strong Cohuba greater to take team opportunities targeting and a XXXX opportunity penetrate of United market Tony new the report acquisitions. increase profit technology us sales that and gross Kingdom transaction The distribution and UK to the increase are operations our from complement integrated Cann. experience or our Promethean into potential. provides of we our acquired I’d in experienced provide Last progress founder, either network solution Specifically, regions. and moment partners a with acquisition reseller solutions add worldwide our we May, an of the that This Kingdom and the decades surrounding based

fiscal than Hunt Matt’s million presentation Qwizdom, of X year greater come we education we knowledge Matt over years or of our XX% June, education providing the classroom appointed has and we for sector. XX the over of and to total engagement acquired company sales January, as in XXXX In region. region. leadership an the sales Additionally, head expect solutions. EMEA from software Matt EMEA experience Under

of Our Qwizdom teaching the as effective acquisition partner of provided the Beamish as to solutions Also relationships software well more provided manage Darin the for acquisition who headed software Boxlight. software learning of research-based Darin facilitate around as globe efficient our of network talented Vice trusted comprehension. the software global innovative make President and designed and to roadmap. lead continues Software solution and Qwizdom serves a team by development and development

critical software and also future leader is interactive offering key strategy a provider software not is to merge innovative but to edge integrated have a cutting our product as of of of Our global only of technologies. element our point differentiation continuing backbone our the

several EOS Daniel and product of numerous evolving with us was or has of Boxlight, solution This most support educators key MimioStudio benefits for services. training, introduce MimioInteractive. November, led XX be new existing as the range to of acquisition to area acquisition complemented Mark our is suite this professional and the focus educators will Aleksandra ability a we an further The and education Last to has leverage and our in including ability importantly and Education, margins. to greater by believe meet total software Leis. development programs services complemented which This professional a company software consulting very of and our future. hardware and thrilled development year, We’re at acquired products attractive discussed, to drive possibilities provider professional product we enhancing our needs adoption help provide today’s technology the provided ongoing suite fully

division as gross to expect much we than total professional with to XX% Boxlight greater as revenues XX%. profit of margins As continues the scale, services our business produce

solution opportunities We our expect to as our additional XXXX globally enhance comprehensive to bring reach acquisition expand suite. and continue we

updates have that I immediately flow Lastly, two improved operating position. our cash have

as our And we’re Partners cash credit manage terms full operational our that enhance convertible better we of of a a a company, and important us XX-month Lind our favorable week on closed in to was our a in fixed second, and have undervalued form current positive bridge operating key I’m company after to million a price First, note our effectiveness. successfully able from and the us We with and a The suppliers public premium requirements The overall strategy stock year enabling with and happy announce maturity to obtain proceeds last investment market to execute conversion share. enable flow. $X to operations our currently it investment the to growth aggressive of the conversion to a a price is us will price. cash believe to at per $X

the working in include and will that, with thank for Lind increasing the turn Brown. Europe U.S. We several Partners call And solution. to and our in business. over capital market robotics completing of now including and CFO, inventory Takesha our coding levels our MyBot products, The I shared new their Mimio launch the Specifically, enthusiasm initiatives

Takesha Brown

was the of XX, XX, slight expenses the compared for a for product compared million, ended compared XX, X.X or the Operating for XX total EBITDA XX.X% year loss to including was ended $X.XX to December assets, XXXX. to for X.X XXXX million ended million of XX, for the sales XX, XX, General the year diluted share Carolina Boxlight XX, was December for million With The growing Operating or XXXX million, Boxlight’s December per X Georgia. million, XXXX months Revenue compared the to X.X a per for XX, for concentration ended months ended Gross At X XXXX. in an December The questions. an X.X QX gross XX.X December and ended profit the increase an summary, the million for a of three we administrative for $X.XX to December December three or XX, months diluted million to XXXX and loss debt panel X.X look million the delivered year XX.X% projects XX, XX.X% loss XXXX. to XXXX. Net $X.XX the three share ended ended compared margin a for to months in XX% X.X compared million the XXXX. XXXX. Beaufort, million, XXXX. the Clayton XX, ended year by ended of was X.X XX, X.X of or XX% million resulting X.X of year-over-year compared now million, loss review X.X ended loss the or XX, for of X.X XXXX months million, XXXX December December million increase December was compared per was December months interactive X.X X X December XX, X.X EPS three are profit up solution sales volume or ended December with months of EPS of have resulting full ended year XX, compared XX% XX, ended of resulting ended December Adjusted XX.X $X.XX X.X XXXX, XX, December million XXX% Net will December cash, X.X months years XXXX XX, decrease XXX% for December ended margin had for the diluted year results. X.X XXXX compared in the the XXXX million million was year were XX, to EBITDA the reflects ended resulting XX, was share to million million, decline increase open XX.X months million two for for the XX.X% the months to The XXXX. X.X compared three year-over-year results. year of increase XX, an XXXX. December to to the for the compared X.X South Gross compared million for we’ll December of greater XXXX XX.X for three ended ended for and increase large XXXX. And was that, for margins, driven X of December decrease for the call gross months the ended three adoption million, primarily ended year an to the XXXX XX, with December full increase diluted XXXX product year a pleased increased was decrease months three issued of ended year million, margin and the December was due X.X XXXX XX.X XX% many million XXXX County, XX, X.X ended year an were December suite. on ended to December gross XX, XX% share XXXX million loss space the XX, decrease XXXX. Revenue XX.X million was for million, an growth XX XXXX. to XXXX growth for for the slight or was our year and December for XX% December to for year ended X.X million year year ended per was year to the three for I December December X.X XX, for Adjusted for compared loss ended million come. Michael. Thanks, or X.X three X.X lower XXXX. an XX% XXXX. ended now to compared for million increase million million, ended rapidly XXXX. XX, three XX, three X.X outstanding. We to the months the compared this X.X million or for million forward shares The XX, to the XX, year ended December In the million million December the The December was ended of three and ended months for loss Revenue million the XX, for December XXXX year expenses XXXX. million XX, increase XX% for XX, December year XXXX Research of XXXX. larger development three


you. this conducting Thank a be time, will At we question-and-answer session. [Operator Instructions].

Our the first line John Nobile questions. proceed your question of from with Brothers. comes Please of Taglich

John Nobile

for in looking much you million XXXX a to and few congratulations afternoon. to profit year about Good for with in into good the enjoying it looking that mentioned Hello. generate And see the the Boxlight. quarter. about obviously numbers we’re do how hours, produced taking But markets have press the over things. hour, and in a I too. Thanks on to you XX% up questions. was know Robotics, in XXXX and in the for I impressive. please? results, what wanted it The this just release fourth already $X so after After acquisition my by very traction the had at revenue of share this way $X revenues the it did here it’s margins I’m get Modern But

Mark Elliott

that. take I’ll Yes,

for thanks as always. John, So, joining

under additional course to think that tremendous so it re-launching going solution the did XXXX current about plus at you on And year. full be $X are of our and Mimio launching we’ll look million some plan solutions first year a that have robotics as brand. we And 'XX, we in

John Nobile

potential the talk you hoping little looking actually about of a you could Okay. company a mentioned just last this actually there I’m do and generated in And market now Obviously revenue at that technology. you’re And is how week robotics expecting – million big a million. classroom? believe over just growth you the X acquired in X for you for

to just and try of potential an get the growth So please. market the idea

Mark Elliott

economies because from is STEM look in this a is it that advantages building robotics and Everybody right people the common here to and Well, engineering logic. to for way the recognizes the and is market sector globally. mathematics most have and programming great teach the they for area huge

conference on area side be biggest any to so you there. And going right is the the go STEM, to robotics

seeing our tremendous excitement of channel so part a partners. And we’re on

of from One the is school. having the they and there elementary, Lego’s group, have developed Barker’s providers experience a three with groups within high been sector and Stephen Lego an largest And for middle solution solutions in have insider this we advantages are he’s different lot school that and real [indiscernible] level area into toys. to robots right a believe. from which and They’re capabilities with programming teach [indiscernible] there. you being utilize not the allow to Python of simple the These that Google then is able move

product leader Lego channel So because sector it’s that direct. a our the partners in like a sell this is and in United they States

the of for real, have that that’s looking lot value customers can and been have with a a grow partners channel our solution So add.

hot a market. is very, robotics So very

Michael Pope

but X.X market it’s puts and to to grow John, in going XXXX. so billion XXXX think I about it fragmented, it’s Yes, market-to-market million at pretty $XXX by

to send country can really be that the there’s the We any part in you the globe going and district and travel one. research, mentioned Mark that’s as doubt you of no around some it’s school conversation. but to also So other

John Nobile

-- I’m sorry, you might

Mark Elliott

product One and STEM popular tie MyBot it capabilities which have their the this in advantage doing have the into to and also in suite is we solutions sector. we Robotics with and we’re solution Labdisc, all be the with another existing of our Modern very is we’ll our together MimioStudio is integrating able

John Nobile

I from market. said, XXX didn’t to what they and projected get that for go this what about to into on But you look an the just I this. just markets Thanks what Thanks. year? market in of Mike color what missed I Okay. – want said. was to that research idea was it,

Michael Pope

billion XXX a and XXXX. to X.X in that That’s can send have those we send I can by That’s right. they can you. I you million about the out growing – pull I to reports there one. John, all see XXXX, of it few recent

John Nobile

And you And great. began? this a could was to would light I’d could I with relationship your I that to appreciate Purchase relationship with specifically benefitted you know expect. had your into you since what this into look shed relationship has bit going to press your Troxell, talk I sales that. hoping Program little even that myself about was how a -- the some I’m Illinois be Technology but that release about hoping

Mark Elliott

[Multiple Speakers]

John Nobile

me, Excuse Iowa. that was

Mark Elliott

Iowa, with yes. That was

John Nobile

And that correct? was through Troxell,

Mark Elliott

was part Troxell absolutely. That of as with a there,

John Nobile

And should about what you know as XXXX could hoping for talking I concerned? All in that’s as quantify look XX-inch, even because was mean, I was right. just XX-inch what it we and if that far panels

Mark Elliott

Well, professionals million K-XX XX with the we’re together there a a success $XXX been relationship and over seasoned with won Diego on got of has us Troxell by sales with business comprehensive including you a and winning for extremely one competing referenced with we’ve in year in with there. They’re proud solutions. the lot with started years educational around than respected San places Iowa successfully. XXX well in suite many It bids the delivering we been And Troxell. multiple and company They’ve many, a a for they’re our United in from just bid States. classrooms in them of working community.

had executive we’ve multiple their we’ve us, and Troxell together, management planning So them. had sessions and with meetings team

each everywhere. of with them with across each We’re conferences individually and participating their working of managers the with and channel teams in tradeshows our country

things on as XX option that for seeing huge and the as advantage are entrenched about that excited to with enhances across a to is are reach people Troxell United States going we’re us. as it our have go we’re bids us. they an very when they well like and leaders So that And that, in respected have

John Nobile

getting have into bit little you add just you just idea another talk week added could and resellers? with upon to expanded Obviously that more reseller get you have the networks an of more more how I recently there’s you near-term any if reseller will past do just I believe about plans network. a that. trying your in I’m believe If much one. actually just that expansion

Mark Elliott

they Well, when time adding come to all us. the we are them

attractive. very opportunity So we program, strong have a sales that John, registration is

the they if do partners and in educate with business confidence it. win with work, school a they and set that should districts We that of have our go they the high stage that rewarded allows an to them knowing get degree should the they if they approach the for that

list preferred either get or approach the they partner an get we approach, have So there. they price

a And in recruiting advantage partners. that’s so and adding us huge

team do in these I opportunities we with them and are there. profile, and of across geographic and and great in sales we yet. not also in has together is prestigious rolling sales they’ve we’ve earlier, States have County of And with very opened them won operations field EMEA. United and not we’re So nothing those of they partnering had success and CDWG some a some County in everywhere only we Again, multistate are covered Howard outside that they have tying want reps have people area. won a But and Troxell, Howard to with don’t XX lot working the districts but got implementation Kingdom like and the sales another reps We’ve but Buford we multiple some CDW. And with districts with XX together they their bids sells that similar us. districts, leadership the said XX we Computers XX school exposure so the together. as multiregional, they up sales Clayton in to were we concern. to But areas the very executive now inside out And and school familiar have hundreds at United with successful for only organization the work we’re

some then regionally United part tell are those partners, you channel our we’re they of and they and States sell as strong partners. so team. the through everywhere in our are except and have of the really partners of of don’t proud family And will we others. And just We part our

the like a So don’t an go together exclusively, of work They direct. are they us. we with we the and and do lose together and approach, we partnered win part them. that we’ve together extension with They like our them fact

are we’ve a from week of meeting prior been with we brought to bring a that been in of in from us had So our competitive coming Promethean I with channel the competitors had able and advantage resellers had my whole coming smart we’ve our practically this Promethean for time just that partners now. a lot several week last it’s big and years all company to us in. have one resellers all and we

because continue will it So nothing sells success. like

And want that able whole go They and so wonderful that so be integrated provide allow the of success a meet in that advantage have truly we just to them develop They gives solutions and to and relationships to many want suite then requirements, are tied they customers’ that’s be with and requirements. the because what solution to products of that them can take that want listen why they in and and consultative. one product be long-term solutions suite meet benefit that in that’s they come not and successfully a these a offer products different the of and right we value-added they resellers. again feel can have for they but of and our


question proceed next Klee Allen Maxim Please line Our from of your questions. Group. comes with of the

Allen Klee

Hi. Yes.

quarter of margin. that Just you higher secondly that the two acquisitions, the at that were rate to the you on is for this XX%, no to would to end at of at looking hit saying provided, And these growth of acquisitions, you’re XX% revenue there that. in that layering if does XX%, of And some be of XX% expected higher. seem which them end of low it imply acquisitions? to then the you least margins that guidance low be One are questions but

– on even what grow opportunity goal there’s comment those If kind maybe maybe and seemed just it that could time original of exceed an me for your Thank to number of you So over longer term seem XX%. you. to two.

Michael Pope

Thanks the Allen. for call, joining

feel the that growth, confident on number. So pretty of XX% revenue we

we we in can 'XX And I if that you don’t number. an number for grew provided growth confident year last that of there. we we’ll organic but that expect course remember grow 'XX, a of so you of similar in know well again feel north is number. and And like did we

those will to acquired be growth will not be But our acquisitions that acquisitions, if rate. coming in of go out revenue XXXX, existing included various course So and figure. in part close XX% from we that of those the course of were

So that was of first question. the part the

the margin second we be XX% think that question stumble we profit in in gross a on And of we where little of margins. our mentioned in had should profit part I the QX. a was what business expect profit to a gross bit QX gross

profit we just everybody happy able that services so to to and lot hit now are gross higher like ought which offering of absolutely mentioned a you to that because And forward, were be in to products of number. that you that provide and business margin growth margin. going But new expect we’re

And so looking feel We number. gave comfortable that we’re we giving an you a if you’re we That’s going XX%. But range. and XXXX to additional course or beyond provide to want to don’t tick exact up can closer be, of a be guidance. we north And better what get as future. that a there XX% margin why we’ll into for even business of the feel

Allen Klee

just or the that if specifically of That’s the maybe little can of give anything margin color an at a related higher the was that And just to in you mix of lower said Just all-time you it? makeup your businesses? high. versus great. you Could terms say on anything pipeline then margin

Mark Elliott

our fact I’ve lower mix have solutions margin we’re that. can flat come partners complementary alongside and panels that that be items talked channel there we right getting in good Well, that earlier, as a like like certainly peripheral the about

we flat without So come and as fact be peripheral with have start just some integrated other And that and districts examples because they [indiscernible] into a suite a cameras, there. would loading nearly the in right competition there. solutions then the it’s our devices but and of lot back school that add much panel tables solutions that

Mimio interactive then so solutions We we MimioFrame the but there of towards there. skewed classrooms coupled they brings for $X,XXX where a this seeing as essentially desire is that huge have. XX any that’s with [ph] the good world also as on newer that with approach a it manage advantage. may environment to Internet mix have Management And the from separate we’re the them it like allows Internet And global without needing having less our points again another can the is some operating they right MimioStudio be bringing them to Learning connection touch take have allows pipeline, get Academy of resources there Khan connection. to far them an developing than it and economies globally is there our projector complete not as which panels software they ideal flat that Micro-Cloud got or them with into that anything the and into or and economies we’re It’s that

partners of other XX one, our they’ve taking had there our from EOS. do got of in that’s had products available them the areas. allows we to to advantage that it be only development. two, catalogue then take all and what us, over are training we’ve face-to-face We significant we’re And really that that the orders we’ve get as products right grow. gives on a with of account of or on channel solutions solutions about starting are to a orders that it them Clearly these that they globally And with classes and of either on-demand. things from and excitement that And of to lot is the and lot in, advantage the positions of So we professional of come are want development us ensures there. to best are community the professional using suite into able technology higher margin talk some a then about there. in And side, credibility add which all you that additional

Michael Pope

various providing bit just will lot not a in versus the hardware breaking would software a give future, to around to like bit start and from right, the look markets. we’ll add trying services that clarity something specifically what more it you report we globe segments, on other U.S. we’re information or the now that revenue That’s down right on little a Allen, do I of figure. from little

report quarters. our future for in now that figures. But do we revenue to start we’ll So to just

Allen Klee

wrong, into. Could little you. CyberTek. for might brings? talk the me about Thank with, that Bahwan how days I’m Two you It Okay. say there announced that opportunity to geography think seemed about the and you to this a to a new you going you it that move be position ago their partnership

Mark Elliott

The be one the Links referenced just familiar asked and you that we’ve Critical with would one I’m not been there. the Mimio Micro-Cloud.

Allen Klee


Mark Elliott

was – Could what the you Allen? you Michael, the know name company – do again, of

Allen Klee

Mimio solutions bring be might wrong, saying the to to Bahwan CyberTek East. classroom I it Middle

Mark Elliott

channel a Oman. out strong partner very partner. channel That’s channel partner, of They a are

they’ve a with them presence they East. So Middle so the resources a release recent press and and and in we’ve considerable got got selected us

a very it’s our excited family channel partner of for we’re and us about providers. So to channel adding them

Allen Klee

the you be doing competitive recently Okay. that there right there that’s changed have, My more you last anything that question share. to everything consistent? your seem – maybe solution doing and be would to be winning you competitors think given pretty do on is it’s could the comment than Is you any seem been you competitively are environment your in comment or

Mark Elliott

on And traditionally are and over protect these base solution existing at been their and little talked trying for last providers had then others come they where to while can the school something a And in Promethean call the are opportunity recognize I’d there’s solution OnPoint We’ve there. in companies just that I Smart about consistent. that time they solutions what we growing price. in districts that will beat interactive can’t just come had traditionally that in failure. we’ve have discussion, just one that and a say afford it’s but that whiteboards, that’s the as market

a there with successful. [ph], pointer an finger know winning up price be trick can are one that’s have end on we’re the with to that up complete in there, and with a together pony, out we lot have you with end a objective why not that so all they they just solution. that’s of because up product, If issues and they this are ingredients of And they’re bids tied they these come a installation that end

the can that we’re whole our with successful so events customers them. that’s foundation on And developing why is hosting sales do built force. And

We’re having webinars.

to customers is areas district doing things in surrounding what doing ultimate lot We’re sales. and And how the and to invite and come a they and that us why. school with marketing where look at they’re in for of our

that be to our our we deliver up delivering ones Let and say said that the what live customers and on we’re message we promises. our

a that positioned competitors and in with able the successfully. that areas have be to of to well able to Promethean those with developed rich schools lessons Smart XX being and the we’re of got So to operate We’ve MimioStudio. do over run years history XX

the that’s So all what that that The they have give all value. is got districts solutions we’ve them then protects we that do and other competitive the integrated in term reseller and advantages investment surround and allow value-added love, add the true all they it lessons and the really things are huge our because is all lessons to us relationships. they about are channel partners what some

Michael Pope

comprehensive I good our And clear Mark. then going suite the more as a going of And the well number over they’ve not market, into we last product just Allen, if integrated you’re and into XX that have you’re we’re market And into that’s are months the competitors to at you offer Promethean, the much the of solution overview, where case. would to see many and a school right. you introduced and look what going year see anything, products the we’ve not solutions. as new tremendous and and last you’re of that over to to see districts. Smart how go see And introduced look differentiation look all points suite also we’re add, that of the a is That’s product that one one that innovating the then total software growing solution, price whereas so we can that

we’re and we’re And feel this because so be that’s landscape, have and space goal where like we clearly in way. competitive a evolving market our we think a we feel as leader on to pretty like as they’re we stagnant far

Allen Klee

much. so you Thank

Mark Elliott

you, Great Thank questions. Allen.


of with Equity questions. question comes Diamond Hunter Our Diamond of from line your the next Research. Please proceed

Hunter Diamond

and on guys congratulations great Firstly, quarter results, impressive. annual very the

quick One on two questions. of profit So just gross sort touched have the to this. and you I relates

recent You’re that were to panels. of were to there XX.X% Clayton Carolina; in sort to these XX% year deals they down two Georgia County, projecting South XX%, interactive the due since it yet for pulled

what of of guys why in panels, that’s selection? you keep On [indiscernible] second wouldn’t that sort AR the because the I’m think just related seeing other or or think just So to would people or terms for you reality pick of wondering acquisitions more in – just will are new is like thinking purchasing and and I popular BR, be the products of the space to are interactive you question this products? going virtual what not mix

Takesha Brown

Hi, Hunter. I’ll to the take margin. that regards gross picture in profit

is we in the margin get arrangements [indiscernible] communicated that some these needed to profit County of financing to One it be into But products. have large two able of things the a enter for that that. operation we Buford fund to the was as two that was and right, equipment related our some the margin So able all and previous impacted Clayton also be to to the to fact conversations kind of product. lot panels, of basically flat in addition we’ve

Mark Elliott

into installation, and board school Because to months. the into about the said, way. six the initially in successful years do they members Clayton going how by accelerated We saw it two been went move going County we’re after to schools had was over it everybody it initial two and superintendent excited not how to was years. Which and want the rollout and up and

meet existing had in there we that price. that to their some we put demand much at right So higher we inventory had had it to purchased

Takesha Brown

for had When Right. utilizing – that inventory. didn’t them, we in cost take higher of budget that we consideration proposal the already them some we’ve we products been into for the original did

that. is Mark in to regards So right

So I think it’s like three things.

So It’s to had the be to margin the it. the financing that And arrangements fact it’s to fund product that enter lower able that. a into item. we it’s panels then are

going we higher can forward. margin if So two our how those take to see of you product the kind items, path little you get of

Hunter Diamond

okay, sense. Right, makes it

Mark Elliott

got we’ve if they’ll out lot pipeline state that or contracts in-purchase buy of of and go just pilot will up they are either a it to pipeline’s lining extensive bid. And through [ph] off our or they there the districts On have growing. they do

Public deploy going in know School several year don’t Then been a we to they’re thing. decides XXX do there. X,XXX have back at in they’ve type you how Clayton we bids these. Now the that to won deploying bang XXXX and Atlanta that big a hundred,

now a uncertainty referendum just from that coming to classrooms. going did, told they’ll [indiscernible] they had to back we’ve but there’s standpoint get and of they they’re San a was passed So for the be lot this Diego bid. to specifying want their valuation of It the been whether look that And out XXX, We then initially X,XXX funded. of time they bid. because had they’re at

and profits, but to very sustained going So have to our have they that recognize we there we there. work it’s be margins with closely manufacturers

a certain may we over typically term then So implementations buy down. came they’re but can at years, three working or longer just price the – and two cost

a within tremendously be these and we margins products we’ve selling that. time products or And solutions have and customer back our So better and helps us the peripheral lot and then lower the improve to back in by. come in And as mergers will able upselling allowed with base. complementary that going of done position to goes us by

Hunter Diamond


Michael Pope

of I’ll tackle next the the part question. Hunter,

for So this call, is joining the Michael. Thanks Hunter.

So you AR and asked about BR.

absolutely at. are technologies we’re looking So those

quarters federal opportunities. and well to to [ph] content technologies at absolutely has today cost and have quotes state as an that’s bit and various as those [ph]. have very is ties and key ones technologies other And our of virtual have heavily. Also content that you in think you as cost in months lot or opportunities looking do lesson The have with reality to standards But been it’s to those out a down ways I as an going I and have something we’re continually cost at issue that we So technologies and those especially application that for there, education a as that on to we’re future of think requirements. make plans sure have more have prohibitive we’re little and you and just looking away. the be a come

Mark Elliott

they got no segment out shortage they’ve for time us Companies solutions great or a great ideas are that recognize there’s the of coming Hunter, of because there. to niche. all there

support all the get allow is that have and the sales don’t and want. to they what However, the they reach everything to marketing them and the global

we’d we great come in, us how companies like every like can you, to we contacting you solutions like what saying to we week have have work together. to with So have and we’d see we’d talk

So so was we EOS. sorted that, through. a and we’ve Qwizdom them find Modern example great was – Robotics was of so

in the police and end in almost gone are technology was And so that choices where can there the incorporate use XXXX not there’s how other of It’s the altogether, more classroom. overwhelmed talk there. than spectrum advantage no there have case The holds it is I we then the shortage And have software school so in options. car presentations and it simplify the too That’s of with classroom. we that teachers about to because in a that we a give a we was today. many

one our the in then that them so And approach look navigate integrate that there. and use toolset it approach. it having on simplify to opposed let like make sit And I all at our shelf. that We we and them to we in different multiply through easy and software interface we at that simplify they for this use did to solutions was to learned the did one intuitive them they technology these as when want to allows and Apple so is them fact to

Michael Pope

with reality I’d globe. in technologies Hunter the major have we whatnot year walked companies here to have the of we as with companies time but add as were part the see And to solution. well. around the us have will in if the Absolutely. to ISCE virtual conferences of floor, And new or course you and dozens too attend and education every And of all also dozens of Bett coming go all that London we or you that [ph] you those meet would go U.S. their

be it be roll successful ready at in and just out. So sure to comes company market want making the Once that’s classroom. it’s really case, to we again, going that the the it’s around to it

Hunter Diamond

Apple. makes you It’s Right. funny perfect sense. That mentioned

Just infrastructure. the sort of bidding you you they’re going when in that and they massive topic. a ones education for go say Are you’re Would most Obviously they your have bids? formal are really? or team like competitive not competitor with biggest who you when

Mark Elliott

of Not consumer things really. part like When I huge now a more education that. and It’s become was Apple, like with overall revenues. our was electronics much

great we the far iPads Apple got budget solutions things there, other side, So what may But do. but as we and interactive complement as with their for compete dollars. laptops them with and they

deployment be of them. them to work to take project iPads and like Apple or interact ability screen Chromebooks with large need You’ve on or to together the that, the got a able able things they and and to those devices be

we because the sooner do and technology what and is technologies wants seeing outcomes. and the achievement just doing those helping it in which love enhance to ensures enhances we everyone what type So of is complements fact

Michael Pope

That’s right.

core the is have, Apple Apple software. that we have, interactive we those. any Hunter, accessories we Our the we doesn’t software software have, different that displays provide from provide of The very

of and as to Google in put compete any companies well. we’re gaps. be today the technology education district. guys. – with in going Amazon into as their because or don’t of larger And Apple. the that’s to want these Apple of district true So can we them all We of the is fill school fans We going products alongside Any school

Mark Elliott


Michael Pope

services we’re can on of that the getting None business either. We put them the because and side complement. same school services software to accessories in those thing. the plan love Microsoft, also. we that provide or in the go companies technologies Yes, hardware districts in well districts of We school side or as put into those and

Hunter Diamond

I they has any aware But had of to Right. they familiar. education an All to you obviously I more a Obviously, I MacBooks, That but sure everyone campus, wasn’t wasn’t yours. makes it. offering platform. I’ve go iPad, similar Apple, just perfect. just if had even college knew been sense. strong right,

Mark Elliott

and people here brought we Great of I out do. a and They to lot and there us with company to of came Promethean went Boxlight. when we moved

them, Google. change in whole the we is and the the Hewlett-Packard know like complemented Apple them and classroom and that to we we Microsoft and and with So classroom, Boxlight in approach change world like people at have and here added

same We’re after to is educational thing going the outcomes. all which enhance

Hunter Diamond


for thank time. your Okay, Great answers. you

Mark Elliott

Thanks. Thank you. questions, Great Hunter.


the line John Our follow-up Brothers. Taglich proceed a next question is with your question follow-up from Nobile of question. of Please

John Nobile


last know XXXX. mentioned it would sales that I in question. generate that call one about of Just was quick total EOS XX%

services Now achieve generate? acquisition we gross Robotics, just of I’m still could your in of sales this? if And services? track on can do if XX% you you it Are would talk your total looks about what curious of like to margins bit from about maybe Modern light little a

Michael Pope

question. great Yes,

talked opportunity XX%, So professional services or we XXXX. in I Education mentioned we I that don’t when know quarter EOS think about last

specifically 'XX. be, but don’t may we mentioned it believe right, Now I

We’ve again be. I earnings it read expected We it we But to just on think our XX% we mark. the – on some that be mentioned we that announce our well. script started hope would That’s us. and but as to believe already haven’t we that doing near where close pretty we through mentioned that we guidance, in to given to to ought is we that. group think we’ll wins that specific well have really future for which XXXX grow

Michael Pope

be X,XXX solution the for developing side similar already Labdisc County solutions. like EOS in of developing school that And our we’re done team the with they’re implementations they’ve for lesson things plans on there Broward and in Robotics can Modern utilized training large where our and Labdisc plans purchased where training they

we’re the training So EOS everything hand-in-hand complements team just the there goes and it doing. and

going every everything provide. of so to And and it’s be that integral part we solution an

John Nobile

if products, to margins imagine for on the services, higher I And gross than Okay. it’s some expect? what could would light shed you

Michael Pope

margins on mentioned of so That’s be the of X-X. That’s North XX, in We’ve right. of north the that. north we’ll right. services business, XX% past

said of north XX%. So we of north robotics XX%;

John Nobile

have. Thank you. all I That’s

Michael Pope



There would are conference. audio to for of no over questions portion conference to the management like closing remarks. further turn the now back over I the

Mark Elliott

great today Well, from your for everyone joining and look call. for out speaking you thanks with quarter. to we And questions us conference next on forward there support our and

everybody. thanks So

Takesha Brown

Thank you.

Michael Pope

you. Thank


conference. today’s you Thank your This for concludes participation.

your rest your may a lines disconnect at and time wonderful You this of day. have