Boxlight (BOXL)

Stephen Hart Hayden Investor Relations
Mark Elliott Chief Executive Officer
Takesha Brown Chief Financial Officer
Michael Pope President
Brian Kinstlinger Alliance Global
John Nobile Taglich Brothers
Allen Klee Maxim Group
Keith Gil Carter, Terry & Company
Call transcript
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Good day ladies and gentlemen, and welcome to the Boxlight Corporation Second Quarter 2019 Earnings Results Call. All lines have been placed in a listen-only mode. And the floor will be open for questions and comments following the presentation. [Operator Instructions]

At this time, it is my pleasure to turn the floor over to your host, Stephen Hart with Hayden IR. yours. is floor the Sir,

Stephen Hart

today Thank and you, Earnings access second XXXX call issued the the X:XX close pm Eastern. available welcome Call. By for to This earlier was Conference which have being press Boxlight's the now, market earnings approximately webcast quarter is release, and after is everyone to should replay.

operations, will securities business considered forward-looking future meanings of laws In relationships forward-looking customers, are results and with our within market growth strategies that of remarks plans, our and include statements today, opportunity. about including we statements the the potential

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

the Forward-looking forward-looking risks knowledge the subject actual recent and differ most statements other detailed materially statements. and uncertainties discussion statements. current Form reports The and and to are of on any to today, SEC. are management's filed obligation expectations company XX-K certain XX-Q, A such as in cause are no uncertainties results update in from contained based our with and to Form forward-looking the of risks may and undertakes

call, GAAP this with provide will On analytical that non-GAAP operations. additional our to results tools understand us combination in refer when used measures we with to

financial investors.boxlight.com. reconciliations most provided our Investor the to will We have be on at our directly measures comparable the press GAAP in posted which at release, Relations website section

call to CEO, Boxlight's over the Mark hand now I'll Mark? that, with And Elliott.

Mark Elliott

profit with the to $X several quarter Stephen, million, million, all Thanks, backorders, of with $XX everyone. and of successful new speak We in you orders revenue closed million XX.X% of afternoon excited We're record solutions. gross customer and again. launch the second good of $XX.X

for have XXXX technologies the and of and this services and forefront at a K-XX to transition. beyond, of our evolve growth, new as learning revenue positioned improved margins and products are interactive continues classroom introduction services technology solid with Our and products us

RFPs of projects We see an awarded opportunities. continue to and and abundance new rollout previously

STEM learning largest the XXXX America ISTE attendants, of outstanding will nearly an XX,XXX growth we audio both and had education will with and contributors XXXX, where MyBot bottom of our the with and line North feel our ISTE conference to we future. solution be Additionally, magazine technology for for of in suite best significant in MimioClarity, by award recognized which products, also we our

of ISTE, next At customers from we our outstanding for Boxlight channel unveiled with partners. our and solutions generation Qwizdom both cloud-based and reviews

approach rigorous selected total outstanding as are our We proud implementation. in County RFP of X,XXX their to classrooms satisfactions tell story quite schools to our Boxlight process our in solution and selection have their they date while presented, Boxlight's customers and Clayton their continue letting they success

our incredibly like of customers to failure. report our strong cannot market The success third to in and health resource, be a year best we measured over risk-averse be should important quarters. Nothing the entire and which afford our sell continue that is and very business fourth expect

in we positioned three Over to our our better today the history. time at than million million we've past years, we to annual $XX are growth revenues and $XX million for from any grown believe $XX

through and our our deliver Our us as and reseller and team, with as interactive seasoned best-in-class is loyal partner award-winning network enables to product continued globally. ever and technology strong development management education sales force strong solutions market coupled our

markets. service partner, new welcome including and and to our in Hardware Dakota North We our South their Dakota this in is Texas. company Sussman Computer Virtuocomm in Ireland, in past confidence quarter Fiber and Nebraska, added several York, them reseller new for partners their management We thank New Georgia Data in Education partners Superior respective a best Services and

of have national relationship the competed with most partners CDWG, Solutions, and won opportunities Technology regional to our resellers Additionally, maintain including we other the several country. strong Howard strong we significant several as continue key for across Troxell, and

We family. our traction are we truly contributor through our American international progress sell EMEA consider and beginning to-date an them pleased We're channel partners particularly to exclusively the and extension continued Boxlight the and markets. growth. our of significant strongest are in Latin have We to a with network in partners industry of the and they see

key Schools In flat as EMEA market our by projectors with Germany our preferred software United partner selected we received Konan Kingdom panels in [indiscernible] we're a studios from their order the interactive solution and suite. Stonehenge for and in

key received and Akasi we America, partners Latin channel ComputeLand. our orders In from

of entire mission the classrooms economies to lower beyond solutions few solutions utilize plays change the States countries Each use We're connect companies change integrated one the to MimioTeach, same Mimio solution world software of of extend our solution our ease provide developing and including Our MicroCloud, our world. the the United to developed to approach. classroom lower-cost in of projector. and MimioFrame the with cost MimioStudio total providing core interactive in

cost reduction vendors on primary with our We profit margin product solutions of hardware result software continue increased a to from and services. realize key negotiating and margins gross mix growing better revenues with high as improving hardware

MimioTeach, High include our NDMS, margin margin Software Suite. Solution Qwizdom High includes Boxlight peripherals. and solutions MimioFrame, and MimioInteract MimioMyBot, integrated Boxlight software hardware Unplug'd,

Our professional including our continues development complete team MimioStudio certification Spanish. in offerings program to English a developing expand and

as for Unplug'd, developing well Boxlight, are the they for Qwizdom courses Boxlight MimioMyBot, software solution. online training self-paced as training Additionally, certification NDMS,

and the to Westell, Italy, as realized Docebo, to software Como to Exertis, prestigious [ph], Plainarm quarter, [ph] technology Essay, C-Touch, and our Case market Qwizdom key interactive team a the record support such Touch, ELO, continues few. ViewSonic, including second Galaxy customers classroom and we providers name Our

XX XX X classrooms. in nearly learning in million class in supported countries whole languages installed Our are and solutions

robotic. encompass learning learning collaborative assessment solutions for Our

XXX-plus winning assist and contracts. global reseller identifying that positioning partners We in have

for approach Boxlight allowing unique consultative right recent meet key requirements. be to our their Our differentiator provide complete value is sales to and solution solution channels partners a the and customers'

Schools school in new as School Texas, District County Montgomery preferred Utah, We chosen Provo United second Virginia, Colorado. including in West Washington quarter School Independent also the in as We the District in Anacortes North were County Orange in District in by rewarded multiple School as Cove were Chesapeake contracts State Schools in Beaufort district solutions Schools Carolina, Maryland. in well Stonehenge District Schools in in Owosso Kingdom, and School Michigan,

largest approximately XX classrooms. in district States over and the United XX,XXX-plus students with school XXX,XXX The

was Diego Additionally, District Unified selected San XXX,XXX School XX Boxlight students. district States the over in with United largest the school in

four will that The installed Board partner year quarter approximately interactive in purchase when classrooms over in on by XXth Boxlight of XX-inch classroom in following result second a flat our August X,XXX approved for per the Boxlight began for panels May and Troxell end X,XXX the X,XXX years. five-year the

of customers' of all of typified Boxlight's local trusted channel a of itself. welcome advisors record as were built new partner’s a track which that being customers they districts to the our whom our solutions selection rigorous school with We criteria extremely proud serve. focus requirements success We with on existing experiences these are on history and process where is stringent integrated

Our School in Henry Georgia, Schools second Georgia, District with and in Georgia, Atlanta Alvin in Schools in Clayton by County Texas Public implementation ISD Highland Schools District in quarter results were continued additionally School Collier Parish County Texas, driven Florida, in Tangipahoa in District Park Louisiana. School roll-out County

we by profit. predictability and resulted provides and our introduce as nature implementations continues our of gross increased recurring integrated business model. an customers visibility revenue complete in additional additional with business for to Our solutions evolve and success This

new for on to significant to and counties technology rollouts. Majority cycles. services are products in awarding throughout for States districts with the with multi-year cycle. Once contracts School five-year seven-year the company additional replacement business in position is typically district, in obtain likely ideal school upgrade United replacement and the call of an and next a is

relationship recurring Clayton great Schools Our of example Public nature. is with County a this

contract and XXXX, June with of our approximately Mimio included suite flat and XX X,XXX QX classrooms XXXX. and in Network MimioPath. XX installation and XX included awarded to innovative schools. solution in $XX classroom was interactive Previously Boxlight MimioBoard, This completed of Mimio panels elementary, middle MimioStudio, Peripherals MimioMobile install MimioView Mimio in The was high million comprised

ongoing to knowledge in County were programs skills, support to their of usage District solutions. services quarter, to of Subsequently effective during and an training, necessary provide second and practices Clayton X,XXX awarded for teachers are a classroom. facilitate best integrated comprehensive additional available classroom School Boxlight of the regarding professional These program technology we contract with implementation development their provide educators three

We expect total revenues exceed to from million. this $X additional contract

course educators collaborating participating online their tools will to in want. customized the via are they program, as EOS knowledge Mimio on way, in participants This well as moderator and program, wherever part imparts provide use instructor-led of with course to delivered Google asking colleagues. and an be questions Certifications whenever convenient and facilitate which the to feedback As Boxlight how Classroom, most

and training will access shared Google and support support as Google provide will also specialists learning as all face-to-face digital will onsite and our on-demand be sessions. teachers for and to and group through which Sites. Classrooms resources, training materials have Teachers webinars virtual well through Additionally, classroom

third liaisons. the at technology Suite. Clayton will liaisons for basics. of to the G training The the gives provide program, company tools teachers teachers serving provide County as opportunity XX EOS of take their via the the For support materials over prepare beyond use and will will who part This be also far training full-time campuses Mimio program

extensive implementation. learning support, enhance Interactive takes to them tools goals, With engage provide tools and support in instructional will immediate purposeful that teachers Clayton County's in-depth students it vision technology experience their be to EOS’ can time, skillful and realized. feedback empower activities for but

be in County this another toward and team our our development using to and with base their technology on approach professional in Boxlight solutions training XXXX replicated our in focus EOS expect beyond success is total for that We the customer’s commitment our and of throughout customer and yet incredible classrooms. and example taken Clayton services teachers

and provide solutions deliver back classroom to up proven with and passive proud to results with available are set our We best statements. services for claims products customers the the that

bids anywhere. real dramatically we address arena growing than competitive are We're public in We a winning have the better extensive on market anyone needs pilots. with with that

providers because complete a we choose loyal Our partnered continue family Boxlight solution. proven and of provide a who network, to incredible have channel choice total

meeting, improve in our and and solution in experience Boxlight go ready is Executives may successful having music This to commitment our proven learning make a to channel of school student outcomes. new try exciting Account Boxlight engagement their in an recent but classroom, will a one at experiences time to As with vendors, It's enhance with help ultimately to my district mission our district. a partner ears. they're and it's obviously they presented when partner educators to

in want continuing our to I market best-in-class thank build the for do to There's partners. education customers, in and global solutions trusted dedicated more our to technology delivering award-winning value. supportive interactive much our employees, shareholder and our

our it Michael to President, With turn over Pope. that, I'll

Michael Pope

M&A strategy. today of My our expansion technology solution will and Mark. continued innovation, Boxlight's Thanks comments focus our total suite, on

our As solution stated, and differentiation. backbone offering and our of is integrated hardware to Mark the product complete key with our software

Our of ability element leader to innovate global provider to for education. strategy a our interactive technologies is of as a future critical emerge and

introduced and In our launched and most June, industries Philadelphia. several products new ISTE we of at innovative XXXX in largest significant trade shows one

Mark were magazine. we MimioClarity our mentioned, that recognized MyBot and Learning solution proud Show programming to from audio solution ISTE and both of announce for Best robotics & As receiving we're classroom awards Tech with

strain A greatest selected system professional leading in struggle audio promise students editors large, for products the distribution the and the fatigue, in and students. Many voice show with MimioClarity have classrooms, be develop mind. to heard in noisy panel EdTech disengagement the most to the in classroom industry. and teaches that We and the of or judges teachers impact

XX-watt the microphones’ a wireless battery come have microphones light-weight microphones a is the lanyard. a microphone up life. handheld simultaneously. is captured long, worn to on Students receiver MimioClarity, with amplifier teacher’s XX-hour a both and multichannel connect can microphone With by The voice pass-around four

classroom allow for MimioClarity that networked utilizes room work an to only multiple, ability within allows audio existing and to amplifier. Additional networked connected each resources. integrations, microphones as same technology can inputs school’s the Specific connectivity multi-media Boxlight's

facilitates the robotics. Our Mimio server, a robotic bundle and classroom is the education skills wireless MicroCloud XX and establishes MyBot robotic kits development MyBot system engineering programming, community of the of in core Mimio or local XX available packs that in

to immediate, with Mimio teachers to allows students MyBots tutorials, guides, mobile provides Mimio the access extensive building from create lessons the we systems that set STEM reference them. can and a machines used explore on-device community. advanced for flexible components This and have mechanical videos, engineering Bundling expandable curriculum, and to material students to MicroCloud other educational be of and mechanisms. the wireless stationary principles create simple robotics This developed

cameras. and for sophisticated by Educators education MyBot infrastructure, building The the changes, components, adding joysticks to kits’ and expensive can STEM such or capacities advanced network structures sensors, also servos, workstations. requirement expand as for and students create obstacles removes the more robotic common

the to to documentation start no There order the all and Fusion the controller, coding drag-and-drop connections start is skills intuitive cable a and install grow built is environment environment no so to browser and All in software, into learning. their students need in software An a as languages allows simple easy-to-use a into are to and powerful programming develop. robot. interface students

with into We we Giant Education MyBot robot Buzz the partnership learning. Working five STEAM recently schools MyBot years Moon mission a million educational Mars programming we on to solution. tremendous with ignite reach new Map and ShareSpace to five partnership Family ShareSpace’s Aldrin math tools offer is students three will exciting passing Foundation science. Giant next over an system. provide and focus students million and STEAM educational of expect a our to with together robotics Aldrin innovative entered programs for endorsement our the and K-XX This for Family Mimio extend with to Together the Foundation and Buzz

continue opportunities margins. that our target and gross growth acquisition accretive and our We increase revenue profit accelerate to strategic

either solutions that opportunities new two, one, complement our existing worldwide targeting are we solution distribution that our or Specifically, integrated technology expand add suite.

is second solutions improved opportunities. and with successful are half concrete acquisition examples STEM bring additional to our revenues Our increased providing of and offerings we international acquisition strategy strategy, software the that expect results desired XXXX our growing service

CFO, With over that our now will call Brown. turn I the to Takesha

Takesha Brown

three half our or of million, will to million million $XX.X XX, of and significantly. increase Revenue gross improved note, services. the products is results. the additional an existing for Michael. margin first months June attributable volumes Thanks, review was quarter primarily increase profit sales $X.X second to the for compared products, ended and June for Of The XXXX now months three XXXX I in increase $X.X ended XXXX. and XX, gross new XX% our

months XXXX. ended to The $X.X increase three June ended $X.X gross three the to the months for months June XX, million XX, for ended of was June for compared was months three XX, XXXX XX% three XX, profit XX.X% the XXXX the compared for Gross $X.X June million an million resulting ended margin XXXX.

million ended the three million, compared a June ended the ended for for to or XX, for XX, a three ended XX, loss XXXX. EBITDA Adjusted million loss was June months Operating of the three decrease the months XX% million $X.X of XXXX three months decrease $X.X for $X compared $X.X XX% million June to $X.X June XXXX million or was a months XX, XXXX. $X.X

decrease months months for Net million to loss $X.XX $X.X XX, liabilities. June in due ended revenue, The XX, resulting million a percentage of XXXX. the loss $X.X operating of a in XX, the XXXX three fair June diluted diluted revenue was change three share increased a million compared ended June decrease XXXX. loss XX% the the in as $X.X the net EPS or and months ended for value per June primarily of $X.XX the for to XX, compared three derivative ended months was The per share XXXX to three for was decrease expenses

ended Now first June six million compared our on Revenue six increase million months of million, was the to the XX, of June performance an months to for X% $X.X for XXXX half financial XXXX. for $XX.X XXXX. ended or $XX.X the XX,

June was XX, XX% six the resulting $X.X $X.X to margin million profit million June XXXX $X.X months June six XXXX. was or decrease million million an for six the months six a months gross Gross $X.X ending Operating XX% months ended ended June XX, for to XX, months of months for the XXXX $X.X XX, XX, XXXX. loss XXXX. compared to of million, XX% for XX, for the ended six was June the XXXX June increase million the compared $X compared ended for The ended six

$X.X flat to million XXXX months six compared Adjusted was for XX, XX, compared six XXXX. ended remaining loss million, the June million ended six EBITDA XXXX. $X.X the was for June or six ended $X.X relatively June increase Net months an months million the loss ended X% June XXXX of XX, $X.X months XX, to the for

related to per resulting and in of months change margins. expense months with derivative diluted for The ended net due increased $X.XX offset sales increase June June in was XXXX XXXX. EPS the interest loss loss The diluted to XX, the XX, value compared by $X.XX increases was six liabilities primarily to higher share fair for six the the ended share per

support summary, to approximately profit second our revenue margin quarter growth of and XXXX. the XX% XX% least second are in In half we of plan growth for the guidance pleased our at and gross with

that, up for the With call questions. we'll open


you. Please Thank Our for open questions. Alliance first with Brian [Operator The now Global. floor from the your question question. state Kinstlinger Instructions] is comes

Brian Kinstlinger

guys. to in and in a so queue of XXXX? record maybe first the few first going the XXXX some quarter Great bookings provide were then bookings. for to then I'm Thanks the the what more. Can Hi, for about much. you hear half of ask a get comparison and back

Takesha Brown

Hey, have tracked disclosed not our Brian. we or bookings. Historically, on

However, we've a decided basis. forward disclose on that them we go will

Brian Kinstlinger

years said they percentages XXXX put but us just how first a or I'm more? those into they to than you there give understand half I tracking has were So, higher maybe were sense? how consistent, on tracked? bookings past? mean, does slightly record to I bookings. Were much the fairly to the perspective, were trying Or mean, compare a you

Takesha Brown

be on and something call. that next at we performed we back our look but far prepared it to go and as looked Well, take we analysis -- when as didn't the at can percentages, quarter, we a that that discuss the for wasn't

Brian Kinstlinger

it second helpful. the in into should about we look be quarter in the when third how conversion that where most bookings, half? we think how revenue, then, be would of And for can May a sense occurred Okay. converts at

Takesha Brown

the would Yes. anticipate that of be in that quarter. We would recognized third the majority

Brian Kinstlinger

I'll and in more back then Two get Right. the queue.

orders? I'm some the are During about bookings. out any press mean, there were so, talking one there I you've in if standout elaborate? or that big had releases the can if you quarter, curious, stood and past two

Mark Elliott

We orders. some did have Yes. outstanding

in bit we'll San we ordered there. on. in that about end and we an was had second X,XXX the installed there's and talked the outstanding right them rest order the Diego, little the We've by installed August of it think, of XXX about Certainly, earlier the XXX have a I they've quarter. discussion of

also an ordered after We significant a We had X,XXX about have. that there purchase a against County ordered that that solutions number Montgomery is they round a second Schools Atlanta had pilot. extensive This with they've units classrooms done another XXX of Public of their us.

So that's had. that we've rollout a multi-year

And our a Interactive installed County order XXX very in Projectors nearly Henry for area. that of Georgia nice in about

new from lot as existing were a rollouts, So and as coming so continue. we of and from our customers them customers, there far

Brian Kinstlinger

Right. And then…

Mark Elliott

is then go -- Which ahead. sorry. I'm

Brian Kinstlinger

about you Maybe pipeline? in or deal are then, sizes seeing you larger Are substantially anecdotally context that able to at pipeline? the more some the within Are there great. talk general? would market conditions RFPs Are qualify be least on

Mark Elliott

some proud I'd they districts. we've RFPs and say flat. are relatively their RFPs come There school we're seeing out of We're numbers very won those, major seen we because and a of win lot The out. ones large in big Yes. are come we've and objective

the and County and have our done done a market Public of successfully. that RFP, but about of Beaufort the not thing that will County, good out that Atlanta school others time look an because Clayton and implementations may put go take Schools South successfully, another Carolina, they at like is, larger lot to districts But we've

we that to work And our we in much that's our customers so, allowing advantage big and why so tell that's have story. do a

and what be and success You'll like see customers or things these that. also at. that's customers customer visits, potential to hosting podcasts look We'll stories because want

they demand United world there, the replacement whiteboards is existing installed States the the million think of in the So XX were world the happening interactive RFP is globally. and is market around the the there, interactive I nearly whiteboards throughout

will this optimistic So we're continue.

that's our customer's the plans lesson that ideal Promethean for investment such advantage is from have in we come have developed. we existing big replacement because competitors have. or for us, from competitive and their to The solutions a They protect as teachers Smart

growing. So, the pipeline is

a our take our have partners system, and predicting us and better an with in placing the We demand orders in then our with to job excellent it our done get manufacturers. into job working information helps do

Brian Kinstlinger

Thank you so much. Yeah.

Michael Pope

seeing high-growth I to seeing add was in numbers. still real What quickly. we're going industry, we're

And we with is internally expand we're happening to numbers, record everyone absolutely and are That what's internally seeing seeing as add is more increasing, globally. and well. so what consistent

Brian Kinstlinger

Great. Thank you.

Mark Elliott

Brian. you, Thank



question comes next Nobile Taglich from Our John Brothers. with

John Nobile

I large I afternoon, market robotics for a Good thanks metrics just have taking my Hi. guys that growing back to made this acquisition March? any progress get It's if into in questions. wanted robotics was Modern on I and provide in could that and girl, know hoping, your you the Robotics education of and here. market. since market. you market

Mark Elliott

We've Stephen Yeah. a it in a an done the or we been merger who The Robotics. bro we've a Robotics key for ideal lagos call for us developed and robotics had we in edge, the with the the feel as past. Stevens solution leader great provider world onboard role And job. is Barker acquisition Modern

it key, are their And because the programming in all developing the to students students. tied everywhere and countries in. economies skills growth obviously the enhance involved so of Robotics able they're economic is back into that allows to of they be countries

key. So, is Robotics

think classrooms there, has they Buzz I lunar selected got have MARS maps right have. Aldrin that fact we their foundation the now that with or solution us. Foundation their the Aldrin X,XXX And Math Our about

that see of landing, And are continuing this expand. with that lunar anniversary the XXth we've year they the to

with solution that and going and be with and their our like with MyBot bundled to things and content, other make. our map with to together will curriculum questions we them So market with

for already with to look involved our you if the we at X,XXX into that them least So, they're going will classrooms robots back XX at math. in, five be

the seeing is we're pipeline to -- the this app MyBot year. get across there growing. then Robotics, Modern We board, So earlier had and our with

in being lot that not pipeline. the but request now specifications and building RFPs we in And -- RFPs, have so, are our and in built are of a specifications

So and us we with to and We the to in tremendous an continue for got incredibly see background expect the to behind grow. resources product we've the competitive allow market growth think this. to it

John Nobile

third some Mike, revenue not see Foundation. kicking we the this the be quarter, from sure from that -- In Aldrin might I'm when in. exactly

Michael Pope

We having absolutely another XXX we've targeting and the approach orders. States. their rollout initially are our into XXX with school They to districts them. MyBots the Aldrin package the plan this -- seeing already ordered Foundation go XXX of the stage for with complete and initial to a We're expect them take then and year, for we end solution throughout schools of this United

And some Aldrin they scale. backing and going on then in to we're And think see the very Aldrin with prestige starting going we're have, the confident continued there supporting half. significant Buzz exposure, see that and some I Foundations and we're orders to

John Nobile

the great that's first an had Obviously first revenue? an that's so but of half the boost guidance. the was to guidance? mostly and the of combination driver just last And services start. services hardware anticipate actually margins improved. everything But two wanted hardware, from for higher pretty your this probably you is principal you sure year second not But the like what of year, included your quarters -- coming for year, that Okay. increasing half, already margins. off XX.X%. the the just but if for what a have actually margin of hence then about Well, of Because half impressive gross might the first the which gross this I I'm how looks But I have much mentioned I business, just margin far, your in only year, the curious would idea But for you've the impressive, a it's the I'm not what get could year? imagine from also that. of whole talk XX.X% level it already

Takesha Brown

Takesha. this is Hi,

Michael Pope

Takesha. ahead, Go

Takesha Brown


couple there's So a things. of

So, and revenue it heavily mix one the which of the not which primary in sector, it’s services higher of total weighted is driver our course. services margin. part -- is primary heavily not the sector, But product is is weighted of the software

a second which of the However, was Clayton drove and for that there orders are quarter of we the In margin our half margins, take some XXXX, large other first consideration. we deliveries quarter down Beaufort. on That and into of initial things couple lower second the had XXXX. from

addition, freight we a have In figured a lot by international through contracts our a company entered to that as way look is providers we've of to taken we've have provider. that out related an us for and really specifically a of into, cost freight going at one our lower

mix products and XQ, So don't we a with have that in a XXXX services both that two software. had decrease product margins a initial we're lower getting in situation big We higher freight. and includes have we profit for the delivery those of

John Nobile


revenue at combination may guided margin, So that should this we're higher be XX% with continue -- Is you even XXXX. that our correct? lower obviously in helped services freight see for services… of first your a and the and level obviously margins, but around it at hardware the least obviously, which is but the level cost, at mean half, forward increase I going we was

Takesha Brown


see I we're as margins will percentage the year of start XX% we'll and we think of in we'll uptick the to continue in the that software we an to from what at this remainder robotics as the services, anticipating see well. And and for an see as well. see That's and next increase level. this

John Nobile

hopefully your currently of of business And that have I'm about your an amount What a to these the amount overseas business, contracts? is great. see idea, amount you trying That's from now? your do get where of metrics, And business. growth year overseas in what from

Michael Pope

solutions. grow XXXX. probably economies, only also about for we’re rest developing countries to it to world United now going we the cost XX% of but as it's Right that revenues and the positioned in is it we're of outside anticipating need not And of the in our ideally -- there lower be the expect States

like that access hard said means that's anywhere in cost change we allow the and approach world. in that classroom, to to Internet. the focused every in get having we've And solutions gain Our the to world student them why lower change so the are

Our example Mimio there. MicroCloud which is a of solutions great that

and they So rest access the technologies, all grow. show the of enhances it to interactive achievement. learning continue that it's to it's of and going to to proven learning world, want The

And our become total to about expect we time going XX% probably that so it's revenues. over of

John Nobile

and open just Okay. others. I'll up for it I final have one question

County, included the mentioned that with you which call, call, little school week additional over additional. it and there on a were an you $X mentioned last obviously on-site the believe district, On specialist Clayton million last and this was awarded was programs, services located $XXX,XXX I contract you at

So of we're program. Clayton for County that million at in $X looking close

So including assuming Clayton how the for scalable, and school for with professional County increase of services in way services type handling districts curious Boxlight on-site believe I'm your do is contact the other required contracts? of you go that specialists, division just this personnel

Mark Elliott

them. development The all basically and contract in Pheonix training team started built absolutely think a major of where of their outsource out is an foundation. professional this We with with I handed EOs in over it to specializing incredible scalable. was an district

is of So, developing have midst a other this can with be they they districts something district large the and of have everything all in that everywhere. been right used

our our professional a to to the overviews to them. presentations services, have not an teach opinion, channel development schools and we're to have use a in the channel focus because complete increased So, it's managers partners in to program have and how include our by going technology and certification and travesty

right having that the is our having What's I tools and the to having that Mimio the presentation that -- Clayton out something Studio suite the is if that turns Boxlight a where of -- County all think, in whole like things? use car these a analogy had supercar. they there that came movie fancy in

Michael Pope


Mark Elliott

the use car. Transformers, right normal them basically and got how there. transformer all just you you But The so then don't the things if a it to

and of sudden sort thing So, thing. this and we you teach they all train and got and feature hey this them a that's know, of

having just are the it's and technology, Clayton County they certification still So make work. we're it in to be tied having not because the proud training proving to

country systems absolute to for standard think how the going to be they're I an And working. make across

and So, and it hearing percentage the continue grow invested and And recognize that really the this much will benefits them professional that's why just technology they district getting a is development that tools technology, but using and why to more what's in all of not can this it. be have area of have we about this and in key. we services effectively you'll scalable using the every so to you is seeing the

Michael Pope

is Michael. here the that James, our more to XX% gave guidance Hey about year. We expect professional past of comment, in by services we be one next revenue

that for think, term, a model I Clayton think we good And still revenues look we're well that should our district. Our it long be that. for even stills, going school total that true at I internally. County, And sales higher that above holds right? to a XX% total be is than from County, of Clayton

think I XX% future, number the into a that model and as good to about next think use you by you got as year. model so, And

John Nobile

just to you obviously school to manpower, sure, personal for I the each district going need required the the you're had wanted manpower because the training. make there

not of now it's issue. with even So to. what this into an not to segment XXXX I was that's trying get That's growth an basically issue right

Mark Elliott

It's to a professional lot their out training not would to be a are flexible teachers experience more they of doing work in tied A schedule. love development taking advantage that lot. there and and but of having retiring,

is So the supply not issue. an

is Qwizdom other develop to the out side that growth also products certification interactive of side. those we've as the of solutions for As utilize, manufacturers far commitment a occupancy Qwizdom and training software which made of

our So, are to that again sure make effectively. using we using it's want they somebody they're it else's solutions, hardware, our

started I in we've suite. a So soon position in the the for certification we'll octopus month of rolling think developing the Qwizdom next out be

the people to that this So, we won't I available problem are something that is any with. do supply of think scaling

John Nobile

great. have. question. That’s I Okay. That’s taking all my you Thank for

Mark Elliott

John. questions. you, Thank Great



Maxim Group. questions. Please with Our your next state Allen question from Klee comes

Allen Klee

just a saying support XX% of wrote to say Yes. whole revenue Hi. for just your I year XXXX the related you second outlook. the sentence on growth, for half? you wanted at revenue When are least the growth XX% or clarification guidance you you

Michael Pope

Yes. Good question, Allen.

guidance had for the course, of whole for XX% initially, year. we So the

slower, little first you're as bit quarters first The two into coming is the quarter a aware, or year. the

XX% hit to at say, year. so, for least should have the second see we revised And of the we half that

that, saying notice the So of expect at look as approximately year, you half that will use the year that growth the actual we XX% but should XX%, XX% you that was upped gross to you're as you'll that well, guidance Previously profit for modeling, we'll I can But the second second we're gross of XX% guidance. course, of and profit. the then, QX, for add QX.

Allen Klee

give might on Okay. Thank that. EBITDA margins? and you you And could turn you about think then, you rates you positive? Could what growth guesstimate adjusted sense a for you're us saying when based

Michael Pope


If at of you about our revenue, were see of EBITDA about numbers that $XX.X look million loss at you'll adjusted $XXX,XXX. current

that, add a be -- or roughly, to right? of $XX call that, $XX little positive is Cash flow to, million million expense, be interest of roughly you going Then of million higher EBITDA looking $X positive right? about number. cash for closer million adjusted million that just at if revenue $X So, EBITDA you're than another We're because north mark slightly $XX.X about that it, in positive flow. at may the

Allen Klee


$XX revenue million you could positive? around, be EBITDA So do you add adjusted think in you

Michael Pope

Approximately, yes. That's accurate.

Allen Klee

to close pretty you're What right now.


Michael Pope

that should last look provided we quarter. That's at QX for hit guidance next you'll we if say, right. Yes. And you year, the plus right

Allen Klee

get sometimes panels the that then, great. a where how add Diego you begin customers. -- you other else flat to anywhere you've in can be buy spoken seen you then, future. the think for happening? San yet And you purchases with will then And few some customer and -- Okay, have in about a things might that of Are or that on like

Mark Elliott

approval For, XXXX San next this had year. will the Diego, the quarter and of which we of XXX of X,XXX them -- in the then the XXXX first for be in we're board they about installed

with device they they're out, network that our talking our rolling we're but looking be robotic to are solution. management that going we'll absolutely be So about at us now systems, session and are software, doing training our

and for to it easier sense together makes them, so use. it's it makes just It integrated because

we will So that. see

audio it in every But Mimio the was the document guess, absolutely. Now, discussions place We're one already, I some district that other camera. select they and, with devices has there did single San but in and Diego of them.

like And that's is just or not channel our one-trick a of a the partners one things pony. about we're that point us, solution that

be other or of entry and it that go districts voting and We've have where partners all panels there. channel right then document into projectors. can areas these in off us with won levels devices to doesn't different and with grown gone of with Our or flat just in we've cameras they've

channel approach, So years because grow can with a over consulted to in based build they and relationships then with solution that. working continue from the love that their go they partners us, have they build on out and

So it's we're happening every board across that involved the district with. and

Michael Pope


professional right? biggest contract. part I about with think we initial example came the of services Allen million is that talked the Where in wasn't and back they over that won Clayton County, of contract we $X

launched this, solutions more in these, Clarity that you're So in that launched a of of MimioClarity solution fourth that's going So right? lot to-date. in lot example we robotics year. a quarter to we our quarter lot next probably think keep solution I of just the of these – mind it, biggest But starting a just see this

Mark Elliott

gone County you lab in. additional solutions and other where like places know in others And disk in we we've in have brought as will we in see Broward had where

all a different and involved trying different and it's training. selected that that systems partners these by finger-pointing they the look don't approaches want sales team. And our part overall of a and and interfaces our because solutions different us, customers to have it's to have our and messaging our they big at when channel So advantage with get to integrate

Allen Klee

Okay. just Is of revenues you relatively know you with your for Thank what you last that think everything. seasonality and potential based backlog be versus you. installations the way question us XQ? and XQ a now is My on in could how there will help

Michael Pope


this is XX% it's what kind of point that's the QX it. that it's it really just be see. we to was bit company see fourth quite pushed saw So, year you kind was or of typically say typically a quarter. it's year, into of north I lifecycle total to our mean, going Allen hard in there our last to of hard But

actually larger was our than So the fourth third quarter year. quarter last

something quarter, XQ a lighter going bit little to QX to us tough to a XX% then revenue, of out put But to a to is XX% total trail like largest slowest going quarter. it's going That's our numbers is QX quarter-by-quarter. is So little typically, QX for that is our be right? and going be bit,

already some to originally little We gave trying So, put past, we're expected. and than orders a but shifting where we've last we them quarters hesitant in quarters that happens, to there into were guidance. see different the our shifted just general we're contracts few it because the is or

Allen Klee

much. very you Thank Okay.



comes Keith question. next question with Carter, Company. Terry state Please from Gil & Our your

Keith Gil

the that how Yeah. And recurring you your year? visibility model Congratulations on quarter. leads aspects market? and the on describe of the strong expand a Can in over your business

Mark Elliott

years, But School that we are that. looking to like is at timeframe XXXX were after to budgets be all over the of can that assets, and having winning the they their we're the renewal the The within contracts we County they with element success into that Clayton, grow on board rolling predictability they from little excitement they they that of where continue licenses software, and way saw the months. and six Public it to deploy, we the example confusing annual initially there like, that thought started teachers the fact obviously that which going classrooms becomes time get but the the Atlanta at a and that, recurring two members With a things in collapse in the and X,XXX to there out we by an that has work multiyear us students us an districts lot to gives were they decided based with that contract. multiyear is

and along. multiyear talk variability can school then that you our we in you there's adding when there see them So, general also we're rollouts we into But as district, a about peripheral can that with right in go have solutions the there. of fact kind

gives are people customer our a channel our growing position more we're with So in as forecast our something better and that that's us that much predictability, sales a lot partners us. and base to

Michael Pope

is as That's along opportunity technology. that for other good not contract is to way the only I an well, also there but this And add during or services, Mark. up-sell solutions

mentioned has it typically part refresh the the a seven So That in Mark five of years. refreshes to as cycle. life bringing call,

large school standardize into years pick go us we district, So are we that to and that. services a technology or refresh to they of reflect is time going from hardware in to because on they're if again, new going not solution software implementation learning all seven to successful curve a have it's do when five an that to

contracts And so a that. that start future start years to now, we're of won We're more a more going to we're in we but to young and winning more see of going us lot previously to company again. see

Keith Gil

you. Thank

Mark Elliott

Keith. you, Thank



Kinstlinger Global. state question. Brian from comes question Please next Alliance your Our with

Brian Kinstlinger

to asked. two. try I hit were Actually star my just of Both questions

I it again later. we’ll So, appreciate talk and

Mark Elliott

All right.

Michael Pope

Thanks, Brian.

Mark Elliott

you. glad and answer great them be had to questions will again you we And for


in further questions queue. no are the there And

Mark Elliott

everyone support joining conference with us that call, second we Bye-bye. quarter speaking Well, lot. for forward your today and on to you Thanks with thanks on quarter. and our look Okay. for next a


you thank for We call. conference participation. today's concludes This you. your Thank

You at this have a lines your may day. great and time disconnect