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Boxlight (BOXL)

Participants
Michael Pope Chairman and Chief Executive Officer
Mark Starkey Chief Executive Officer, Clevertouch
Patrick Foley Chief Financial Officer
Jack Vander Aarde Maxim Group, LLC
Call transcript
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Operator

Thank you and welcome to the Boxlight First Quarter 2021 Earnings Conference Call. By now, everyone should have access to the press release issued this afternoon. This call is being webcast and is available for replay. The remarks today will include statements that are considered forward-looking within the meaning of securities law, including forward-looking statements about future results of operations, business strategies and plans, customer relationships, market trends and potential growth opportunities.

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

to on are knowledge and subject may actual based of expectations uncertainties, are the cause and from today to results statements management's and current as and forward-looking Forward-looking statements. materially differ certain risks uncertainties of most the XX-K, XX-Q, and Form filed reports contained and in A detailed other risks with are discussion Form such company's recent the SEC. obligation to statements. update forward-looking no any undertakes company The analytical GAAP tools measures call, understand that to when results, management provide combination in this operations. additional On company's non-GAAP with to the will used refer the The section most company posted has directly website comparable provided Relations press reconciliation the of to GAAP the financial release, investors.boxlight.com. measures earnings Investor at be will which company's on the in Executive Chief Michael I Officer, with over the And that, and will Pope. hand Chairman call to Boxlight

Michael Pope

joining XX% $XX customer million as profit completed our quarter you everyone, earnings XXXX afternoon, again quarter. EBITDA, revenues, We in adjusted guidance with million acquisition-related thank accounting and outperforming for in another gross Good quarter the million and our first $X.X record purchase in margin adjusted for $XX for orders, call.

of and XX, stockholders' reported million as in inventory, $XX orders, working with $XX March balance in also $XX million cash, back million in million $XX a $XX We million strong capital in sheet equity.

increase to acquisitions. revenue the our triple-digit both over year growth testament last strategic and Our winning same through is a quarter organic expansion strategy

schools return by learning programs. benefit market supported the funding in-class unprecedented expansion, sector, to to from as continue are in technology government We utilizing particularly and substantial budgets increased education

adjusted half addition million XXXX quarter greater and well today, accounting expected of report current resulting than optimistic a we and letter the Given on $XX $X.X as EBITDA. XX, reference our you EBITDA in growth invite second of in our on to are first than $X more progress in revenue order as an strategy. million, published sales of our provides pipeline, $XX to of in volume more our And with detailed shareholder revenue million today, to our million and growing remarks expect April I adjusted and which on insights

supply component the While we inventory of with receiving record challenges, shortages, delays experienced result production volume, including and to along as schedules, receiving a of in chain have interruptions shipping goods. order some

also have cost hardware not been and global challenges which margins. both are reduced managing resulted shipping, gross We in unique for increases to These are and us. has profit

However, production to we managing increasing our where are prices planning, believe we than our we most better can, extending by customers. and

School Ridgeway corporate display special Shelby technology classrooms, others. and Schools positive Schools case and de part today, The the certain These times of of X a have learners reseller in benefits and integration relationships through distributor maintain Europe. territory. of On Agustin technology Concepts, lead higher and and in in months the broader our footprint our in our Belgium Academy that UK, of for County margins studies, Colorado, As we successful This March end-users acquired of was with for that on San including strong to both we environments. XXXX education end Trinity scheduled Public Center strategy have technology and with Interactive highlight in The Studies impact our highlighting and in Parish with future studies profit solution solutions XX students Canon the the strong Schools Kentucky, and in implementations, among Spain STEM our Higher X we've extending British in City Year-to-date, the needs, published anticipated on improve transaction case in of production hardware Bilbao Luxembourg, to including channel solutions. XX, customer

our Boxlight In We corporate educator success Gallery breadth solutions. announced in featuring and stories Classroom of early and will of Virtual our both flow Atlanta London. steady continue to in March, produce Clevertouch a Central we

virtual experiences full best a live education-focused Boxlight facilitate to is space webinars how customizable space solutions Virtual educators fully our Classroom used host used understand our classroom learning. to solution utilizing staffed help be is to suite. can weekly also used optimize education to Our The virtual

our Our expansive LED Clevertouch meeting space, service virtual space Gallery the trainers, wall. with partners in unified signage New Google in America, our U.S., collaboration launched and training detailed March, plans, engineers. Also Zealand. gallery Academy, Latin The education, London for week, specialization designed for and self-paced touch-screens, we trade professional and certification commercial in announced downloads lesson digital features colleagues. tutorials, communications Europe, displays, showcases partner hot-desking Australia and educators, a hub in resources, as huddle for and this we boardroom, of state-of-the-art and Clevertouch partners cutting-edge an informal then video a Earlier areas, development

stores to During QX, MimioConnect, and all for now with including and tools. Samsung, Play, been significant releases Whiteboard, latest and management is has Apple. we including had the audio software app available on some updates classroom our Google enhanced video MimioConnect communication, and platform, Amazon which additional major LYNX

ecosystem deliver platform across and live and network. any is digital signage, to user-interfaces Clevertouch an allowing customizable new users alerts manage Our messaging,

touchscreens App Mimio MimioMessage, MimioMarket, also feature education our digital Our and Store. platform, signage our

significant developed with several next the displays, most the In interactive the updates, we shipping addition updates with year. market, later them our also begin generation to to to platforms, technology making this on our anticipation advanced have of

As from innovation. we companies expand AV continue and for and are educators, industries to the receiving recognition EdTech partners, resources substantial we for

the secondary learning During content from platform primary this tools best MimioConnect & for categories. our Tech awards learning blended earned and Learning magazine school year, and both and in MyStemKits remote blended

named and the Business to Innovation EdTech Work, digest. was shortlisted We're our Robo MimioClarity Pro, Clevertouch system. month. and MyStemKits printers Collaboration Awards at Communication our with finalist curriculum, and as Product be Place audio announced Best Best the EdTech Growth for to by UX classroom and winners XD for next Additionally, Best

we U.S., districts looking with navigate Plan relief leadership help and includes tremendous materials to systems funding released Supplemental relief to have the to government expertise our Coronavirus led employees. the school Appropriations of As school funding Act, hardworking resources, content and team of purchase such are the their to school QX the systems by the Relief makers extremely federal and of our by decision and promoted process of the guide provided training. and teachers needs many services. and assist funding. This developed funding Act, Rescue this In talented proud Response accessing Act, progress our support as through and year, team American identify that this internal I'm for newly our funding CARES students, acquiring and critical

our And drive to the shareholders. realize results over for Starkey, a providing we will sales our to loyal global President, will be the With We turn call in quarter. our are technologies. efforts and that, supportive committed now continue additional I our Mark interactive to and color provide to mission to partners on leader

Mark Starkey

quarter who Michael. a and record to us. would like you, helped have certainly our QX I was of Thank also our success this our thank take staff for to during And quarter. contribute customers to all opportunity the

earlier, stated Boxlight. growth a of booked XXX% Michael represents is intake from record partners. and order our That for orders As million in $XX a year-on-year we over

which million million from from over Data our from of orders D&H, $X of were base, of quality million partner that U.S. included Age Digital orders of EMEA. Trox, $X.X Whilst million few U.S. took customer Technologies $X.X from $X.X largest partners, outside as orders million will our develop from diversity we and it $X.X and next Tierney, our over Central key This our Technologies, Projections. our the in of years. the from is business Some $XX the distribution U.S., from we crucial $X.X worth many and of orders from noting million expand predominantly million partners in the highlights be

Tierney of to of merged our in of Clevertouch County a opportunity one and Tierney for XX April, U.S. significant in organization. XXth Boxlight, the This X has On rights exclusive states XX the partners, very largest sell become the is to Trox because

contract who discussing once selling are means the and are reached, States to increase extension Canada. will over in heads XX actively XX is the agreement XXX of number Clevertouch Clevertouch from across include We Trox exclusivity about to salespeople of substantially This the that an U.S. our heads.

agreement finalized presence across next Canada. U.S. automatically the Clevertouch This to and in true the the be sales expect gives weeks. few We

of million across UK. several had from The the environment; end another and and a had for get use Clevertouch of down our software, link flexibility screens. the we users, The of region screens Boxlight Americas of QX the totally to selected including in notable secure million classroom. secondly, UK. quarter districts than purchased for One Brighton wins globe. win use than firstly, the throughout because Defence lock in screens more in school allowing terms to the product, purchased to the each MimioClarity emoji fantastic their the MoD in for benefits of $X.X our XXX bases panels, more in of X-inch In reasons: They and Ministry in wins Clevertouch of the the the our maximum Boxlight very them audio Michigan main was XXXX. X system ability key $X.X screens

Our continues including in in than the $X.X more products win state, Central Boxlight Tennessee, do million purchasing key Technologies a QX, reseller in major to County. Warren throughout well

they agreed approximately We with Samsung from sell the into has first interactive will $X software from U.S. continued our customers partnership to panel substantial our strategic Samsung MimioConnect every received that a Furthermore, order automatically that for year. license. U.S. MimioConnect Our has this progress recently education Samsung include million.

announce Samsung parts of a MimioConnect to hope similar We opportunities discussions further solution and UK with are and wins shortly. in for other about also EMEA

to and Samsung traction In was lot additional And under market. this in we of later are terms order addition forward agreement, sales, very intake updates to revenue. providing also and our partnership selling to a our are committed of getting displays, of non-interactive including software QX solutions In summary, high a the the in year. volumes quarter look strong hardware

the and the I to quarter Foley. record I alliances continue will to CFO, And our globe. QX. develop another Patrick over look that, turn partnerships to in With our across now forward We call key

Patrick Foley

from few would you've further to Mark, to figures and everyone. international provide Boxlight's add I Mark, good Michael afternoon, Thanks, some operations. to The already a like on and context expand what heard

rest revenue EMEA represented the million, $XX.X million, X%, of by So of or $XX.X revenue which was million, which million, Africa. country XX% was the was $X.X total the South Australia in XX% was region, or world U.S. and of $XX.X QX XX%, the which and mainly UK

of XX% total UK, is sales of pretty QX based the of customers, represents top similar the customers' U.S., of sales terms of customer are a by top namely two-thirds XX and In Denmark customers with number to single France. This Nearly XXXX. XX approximately our XX%. are covered markets, total these the largest X%. And in approximately across QX

total a of are proportion and For our mix generating QX interactive further displays, of XX.X%. and related coming which gross panel XX% displays X% gross the sales remains largest at services solutions. margin was flat higher. and product XX%. with for in software, The IFPD revenues STEM was from These approximately the have balance sales slightly margin the accessories largely would been margin quarter Adjusted

costs their increased are ForEx in Michael percentage by displays our We reduce remain by larger earlier the XX% quarter normal XX-inch QX formats. seeing first follows now will reported interactive global as are However, quarters. points. and a for education with shipping results. of XXXX within and sizes X can to with X sector rate trends anticipate where will that review panels, the margin next splits Screen we we I all screen up seeing costs which the XX-inch higher

The compared XXXX was Revenues million connection and customs compared ended XX% XX, were EBITDA March to XX, $X.X are the XX, capital, $X.X XXXX, $XX.X Sahara The as gross X for million borrowings. with compared $X.X months ended obligations million the with and million for And March months million X EBITDA for $XX.X for million X had months the other reported million and accounting XXXX. $X.X the million of as margins XXXX, The for associated ended by ended deducting financial expense loss net in million ended million Gross XX, overhead of Adjusted of a and from for loss months XXXX months loss XXXX, certain $X.X $X.X effects the remeasurement million to the March in stockholders' equity, and gross March Adjustments Other the $X.X net for the months associated X $XX.X loss recognized in foreign we'll increased effects months resulting with were for XXXX, a ended cash XXXX. freight to to XXXX ended $X.X exchanged for compared in additional XX, million and open XX, the as company million XXXX of adjustments increased million purchase March EBITDA the $XX million losses cash Series March acquisition basic Gross settlement the include losses liabilities upon outstanding, to the as loss respectively. After accounting, the preferred XXXX. March to March interest At XXXX of the March compared X due ended XX, XX, diluted Our for associated that working assets, ended million X ended March million were X caused March of the effects translation expense common $X.X million and was XXXX, months in and the other expense purchase ended months to to months The equivalents, was $X.X XXXX ended margin were XXXX $X.X the XX, March the acquisitions. liabilities recognized XX, $X.X X ended $X.X cumulative $XX.X million months X for and ended in points $X.X of recognized for X net of $X.X quarter as the months stock $X.X for to ended share was compared in the settlement million March increase of were million Boxlight net XXXX. certain XX, shares challenges with the increase ended for loss to XX.X% March net pandemic. the XX, March up of consolidation, X X EBITDA respectively. by and XXXX on certain costs share, The The preferred B XXXX XXXX which million ended issued XX, total income Total March from outstanding. X XXXX million X stock-based the compared to March months derivative XXXX. XX, $XX.X common was warrants. XXX% Total X and losses and up EPS recognized a and to primarily loss $XXX.X the XX, $X.X call to with common operating that operations XX, with in XXXX. for with of March additional results XXXX ended XX, derivative months the of for X as chain costs ended of X $X.X $X.XX as the reported compensation currency fewer XXXX expenses upon adjusted net loss profit X the follows. net shares, X into million associated Sahara XX with and have on the expense in diluted million for to on months of the the X primarily months and March profit as for XXXX September the compared was effect issued reflecting the questions. re-measurement the been $X.X gains the in margin adversely XXXX. due for payable, million of as XX.X% and loss adjustments attributable the shareholders to gains months dividends COVID-XX losses $X.X X million months settlement loss compared supply lower $X.X expense, accounts XX, was X effect March XXXX. March months percentage of debt for March the impacted year-on-year, ended the due acquired XX, per the as basic adjusted, million common million of XXXX. months September X million debt $X.X increased for $XX.X shares was for margin of loss and instruments, gains the for shareholders. months of the resulted ended million for comprehensive The XX, X debt, and XX, acquisition-related March increased of for ended months that, $X.XX and loss XX, XXXX. $X.X to income

Operator

queue. to a Brian And We like it moment question a to we [Operator Kinstlinger. from Instructions] pause allow questions for will looks have

is open. Please line go Your ahead.

Unidentified Analyst

Hi, on do funds. for Can like Brian. the you my North question. for benefiting operations about federal your you Clearly And think faster Thanks This and talk international you are taking grow? everyone. are can the from positioning? rates your much how is American Jacob what growth

Michael Pope

and is to a Yeah, Mark, jump for then, the Pat question. free so, Michael. I'll say couple This or things feel thanks in.

So market. the other in number our globe, We're more seeing one than in when look we U.S. the absolutely is are spending the countries. U.S. growth we happen at

talk are Europe be also on have opportunity, growth. U.S. you minus true China, in we true general, the is other in But the globe at that's in whole that that tremendous look growth. we seeing the Germany the countries in Other look But little way aggregate a that's we're high the double-digit areas world. bit the And And may including at which when more the throughout as around seeing around a are so, And U.S. a there other focus be world, lot one countries that a static. about. we would

there's so, over. And opportunity absolutely all

been funding, programs market, systems applied. funding say be I federal we're will Europe, world. available Germany that's and in as more then certain U.S. other in other the seeing beyond as well, federal But internationally that there well again, and absolutely then far number one school territories the it would are around substantially countries. But there's funds as as where throughout U.S. other for federal is territories other Now,

Mark Starkey

Yeah, in XX%. I to Germany we color year-on-year just that, in in growth mean, more had specifically bit put QX, revenue. had we on a

growth significant so rates. Okay,

Unidentified Analyst

you to the Given the one - of year, maybe annual federal expect some significantly package of be a of account the this and other year, the the in the the seasonality second of half recent, about in meaning timing world, around countries pronounced in talked do for might funding some U.S. be might higher percentage more being revenue? more

Michael Pope

a question. good That's

spending you'll year think of more Act I that it's spent of receiving CARES of the that CARES that's that I that money. money. think will money later we're be a are absolutely available, seen to that March remember billion be play still how made If be a $X in yet say last figuring And Act Act about spending allocated quickly, the think CARES some quickly will orders year. are funds these was with where CARES being in case. seeing went part CARES now out. Act was funding then schools But I $XX now to the education. that's if from And we're I federal Act And we will trillion that the spent.

for $XXX billion And That March, You'll was the then, about that most that in billion remember for COVID was education. there act $XX in education. package, recent another hit. relief that stimulus December, was

we lag year. for we're definitely going with expect do stronger seasonality, second in. a to of vast year, the the that certain. that's is see the anticipate of to I first going of lot flowing than have But majority more would year next to a into half So half money

Unidentified Analyst

that And margin, you're hop more and any in more is expect any this on that revenue on you one you there margin? chain? if orders, about then any long have any and And continuing and Can also talk I more. I might you queue, I'll the building and can on inventory, to color gross last? seeing mentioned the impact think give impact? on you Is about how there supply Okay. gross back quantifiable X% but

Michael Pope

me cover then, the the let part tackle latter And so question. Yeah, of the rest. I'll

far So timing, It's as as global it's problem. uncertain. a

and industry, as even industry. those in mentioned remarks, of. it's many seeing components that affecting technology, shortages we well and we're As potential metals our outside Anybody chips utilizes in as of and and our our for plastics,

of managing I can. advance. the we in we're the out We're we've say through will that out best the We ordered end remarks, ordering well mentioned So in year. the

out. X beyond that's we well lead seeing months. order would where So to of times X normally We're

little major meeting But planning to in not deliveries. slippages in this point uncertainty going we're There we're timeframe. believe our generally, to affected It that's we'll manage has more we said, that QX, everything like to I deliveries. so, QX. still us accordingly. QX, been timeframes. way is our in some doing We a delivery we're time And happen of But can in that. around have meet There a

better [ph], far As related seeing reasons] advantageous seeing X%, we're I we then far some as have competition, orders impact, as off be think orders. And impact on shipping we'll may And maybe else. to gone not financial the the that you costs. somewhere amount orders, that's advantage heard on of and putting if orders. impact receiving think than a We're because [printing could then be as tremendous I we're

the had gross margin. when remember adjust our gross profit we're with. adjustments, we the gross QX profit And which also you manufacturers. that That on And In But to, that goods comparable our see can. in able were compared cost cases, bill we're accounting our that in that's we can profit, in of you of that's seeing to best we the of of to the prices negotiate and been XX best are customers. additional prices those points, purchase our And helps we've for XX% materials components from cost technologies. the way offset and to the margin, increases offset we can We a trying in in in increase with manufacturers. happy about many increases QX XX.X%

the increase more right these got in we as think of trending around cost, points direction. around start profit We that normalize, as we're those in around XX concerns margin. freight and towards gross some materials, to So to gravitate

Patrick Foley

would in I of and terms pre-planning. in terms of we're that, the of terms to add also what Michael, just in supply points chain doing

So you'll the of moving the sheet, shift see into for on balance look being in terms actually our inventory, when you our capital, so increased actually that. working prepared

mentioned, So we're Michael also, have as X of a times to kind X like around we months. lead

pre-planning So stocking are and accordingly. that, actually we actually against

Unidentified Analyst

Thanks much, Great. so guys.

Michael Pope

for you questions. Thank the Yeah.

Operator

Instructions] Aarde. [Operator We'll take our next question Vander from Jack

line Your open. Please ahead. is go

Jack Vander Aarde

results, great. Couple Okay, questions. Hey, start Michael. team, of Michael. Hey, guidance. strong solid I'll with

you your over Could recent million you positive to upside to and $XX So million some you of $XX just orders of letter, comfortably $XX at targets, of in an over that surprise? revenue. $XX your clearly, on or to those drivers raise and maybe exceeded orders million for of expectation speak in delta indicated But over results, that both least million the led of shareholder revenue today's at based least you revenue. customer

Michael Pope

things. a our additional focus so seeing One, technology in industry. that's internal we buying. the of function yeah, are a Yeah, on even And beyond couple targets increased demand,

effective. and a immense to to for Some return learning. bridge That students there the back traditional is in lot need educators a to to be on and focus puts of learning also also, then or able more on There's technology classroom. be learn gap technology classrooms have an focus But and are it. that because more political of hybrid to going is lot

we're add we've top general than of technologies funding. On funds that, you been some to expected part company challenges, I providing. had heard also towards then, about And utilized few just quarters. now federal We back these the us those these coming. demand, a a And is a it, be would that's are in go of are funds additional past. driving federal top healthier you industry. of knowing that on talk that, we're That that So if

as You followed for some know, quite Jack, time. you us

a And from from lot by is sell We nature partners. more confidence company, just I There a through believe healthier a of confidence there's lot more partners. reseller end-users. so our being

a of in also those partners us, supply solutions. have standardizing solutions. so, we And of lot then, And a believe our they're in of now stream more and steady

that confidence the provides, just down again, more So themselves. And it solutions then the to from comes partners.

best results. the that solutions that We're I in telling orders, story. uptick that. in out would as in that We're say uptick have additional generating our all of We're the team. industry. those of general, of investing more We're We And sharing the a mix mix in - the sales is sales, in there. items. result

Now, to end quarter, towards higher, in be. numbers what when we down came guidance of figuring from the sales to reconciling that now and us figures the provided out coming those would And trying well numbers the we we in that out surprised put was initial I to came conservative when were pleasantly numbers above be looking our we And there. we were at.

place greater $XX than but with revenue surprise, that we were the million of the and we in orders. million good a $XX guidance just nice in that a was So knew in

Mark Starkey

And got that, the heavily heavily we we've winning, I'll more being obviously, playing, know, we're team. we best wherever Mike, on the investing sales just They're products. bit we're trained, we color a are put really winning, were in

- get we'll wind winning. a we're the of in the sails. lot sail And or wind we've our got And, our Okay, good in results.

lot a winning of we're So, orders. good Yeah.

Jack Vander Aarde

to Got it. this to only of opportunity speaking How there's your I there them helpful. districts. are pending but actively Fantastic. this in you channel a And, appreciate working I actually partners with there. deep many your of or how just, are and if And districts have being immediate your the ongoing access your district then in partners? opportunities, questions discussions funding few are federal any, funding currently, of there's all communications? or or and expected an real actual That's just of many color turned on

this many and to and universally Is already that up territories and you're and it school all and is Or country. it. different You're all districts? or should your then districts spotty, of so kind say, across happening ramping classrooms the I here, penetrated off across on

Mark Starkey

everywhere. It's I it's want you that? to do Mike, everywhere, mean, simply, consistent. It's take right?

Michael Pope

Yeah. right. That's

the So, getting U.S. obviously, in allocation U.S., in of the is funds. every district

talking they're say in I experience access would majority it. those minimal have of how districts knowing those So to the about funds.

beyond school to provide we that. utilize helps around that's read there's guide just They knows and funds, understand they're access how utilization of looking lot So countries couple a detailed that. can and guide a we other of put of funds to ago. funds. weeks those funds. that scrambling that everybody have a out allocated, out that provide more resources same of those U.S. team a funds we thing, guide there we're do and where accessing to the funds, the And resources and to funds a of But And understand additional also districts new happy the that those about and are access Outside districts. the

Mark Starkey

just bit more I info. Yeah, mean, a

Sorry, the the in just state things key is other to Jack, look I U.S. that the rate. could at penetration

the IFPDs rate penetration actually of the So lower significantly is U.S. than in EMEA.

is That greater means in the opportunity Okay. us for significantly the U.S.

So are business. we of that's growth our U.S. why expecting from side rates the significant such

Jack Vander Aarde

an a opportunity have they districts been an that Got imagine terms I'm lot school that get may was districts actually follow-up on what - overall their is this the of this the coming haven't of coming that's if to that, into of your opportunity. open that knocking in or classrooms some technologies expecting happen. implemented many way, into yet door servicing of then because on helping didn't of to and there's districts interactive customers to have door? up, those and you a I be federal other like built classrooms. it. saying - weren't now or already because you they to already you brought renovated, federal in Which any I'm I have already that going could now, they're glad lot that newer just you funding kind funding, to - How technology for their new but actually does make to

Michael Pope

Yeah.

refreshes, that. the would have technologies new absolutely there allocated. of some their Jack, are districts, So I districts or who are planning add but lot X, technology a funds didn't they there's and of And, on

to think, accelerating decisions. they of think And now those point, funding new some of thoughts, Mark's couple so they're I that important. this I are have But, coming,

the opportunity that the districts doing So technologies an put they in could have large panels, most with sell, of even we're to to flat hardware those also a but districts have sell, one X are play, solutions is us technologies a various it's we years or there's year refreshes have ago. life for it that selling solutions, definitely about interactive don't XX of been X And X cycle.

been selling X refresh. doing San And a we've about of Clayton you with we're or solutions, or interactive that technology County later, flat in Carolina, if of talked Diego, X replacing old right actually high panels stores that or our whiteboards are flat you technologies districts refreshes so some they're in and those our interactive of competitors app other districts. technologies, we're were where major install County which Montgomery at those like when Beaufort look other XK largest including. the interactive newer And definition panels, County, with years we've And to these South Georgia,

Mark Starkey

they mean, on every and high we've And - those $XX,XXX spend potential of much classroom mean, are spend, to And classrooms. for solutions we pretty up average, a at I just know U.S. lot the going in got single there. like, home? what it's technology has is effectively I

positioned. So we're well

Jack Vander Aarde

on guidance it. another That's the my very is And helpful, guys. guidance, expectations. of ahead then Got strong second just question just quarter

million, wondering or much $X - how EBITDA of of supply conservative of your $XX is is shortage revenue million like that a just it, this of comments on For hiccups? $X.X adjusted at that at So components, given for adjusted how into million and that conservative built number given wiggle some did cushion $X just XX you into about how - if adjusted EBITDA, room basically that's least least was target And much Because less - out you are risk just to Just baking there? the gross or over million figure on not? margin first that? a revenue? quarter maybe trying EBITDA, a of for just

Michael Pope

Jack. reason It's that, a X for

gives those risk its we some around in costs taking our on been some delivery as then adjusted right, buffer expansion some well. marketing sales absolutely higher as a team that bit potentially absolutely spend. little we've little expansion, And for of well, also, of focused been OpEx, focused share. increasing we've broadening us well you're market is goods. our And and it our as bring the inventories, of for of as a our But X on So

combination least X. say at We it's So of those right.

And be a So than provide. room to conservative was that. higher than higher that. much to there's definitely will be some we expect we estimate million that But, $X

Jack Vander Aarde

you couple making maybe we took that in what's in did focus, you market It's quickest share region? just spoke. see Australia, maybe last around shares, you headwinds. then been been lastly, just a the geographical since market an X material And Okay. any you've geographical of of of you mention or update number up climbing noticeable yourself, quarter, the - share month terms next getting your are one months, that ladder maybe terms market the only a last But in

Mark Starkey

do me want you to take it, Michael, take you Do it? or to want

Michael Pope

Mark. go ahead, Yeah,

Mark Starkey

in report, out Yeah, well, the that terms X so terms in weeks' data, of about comes that of next time. one

I potentially it's we're be second UK; selling and the at that looking market in we'll really the strong, doing actually going that have we're market, terms IFPD volumes where U.S.; staggering, able of to in think, think where in terms and where think, we we're statistics we'll volume. shortly. the Germany; quite the And our I already share, I we're we're think we effectively the position. growth and But whether take, growth, in could doing I'm that quantities very the I that actual we actual get share. take see I to the then So of are

market are other think the share targets for in key I taking and then northern us, parts really in taking of the share U.S., market Europe. Germany, So

can best So that's probably guide the we give.

Jack Vander Aarde

And helpful. more That's I do one apologize. I question actually, have

arrangement, this partnership, still you it shape Wondering of then into during Samsung back expect the revenue your a do Samsung meaningful? in it's bit how Samsung also, quarter real or is the form, On contribution it from to here. guidance revenue second year? employees ramp cause or a any And seems finally kick-in half like starting little contributor, to really materially

Mark Starkey

Do you do Michael, or to you me to want that, lead lead? want

Michael Pope

of we couple this the because our have have said the be so we Yeah. right was the movement and point licensing, in nice the sales a Samsung do think, be MimioConnect in say it the baked software. things. other that start is QX with A U.S. made the to we the in not only you solutions in is QX. to Well, answer in latter Samsung, And our MimioConnect ramping in direction I'll into panel at Samsung, part of gap, to we've education, and remarks. And our of significant, of of year. in accompanied our going will fill in believe we just $X I'll announcement in course for We can guidance of panel and remarks million every sold flat every sold interactive the in education their our that flat agreement interactive selling be substantial

movement, So the right that's a direction.

are those period Now, revenue, X-year time, because the that, of it's to we licenses. to recognition licenses of going need a MimioConnect model still but over be that

platform how we're that of that nice in training of And that revenue million to providing. content some so other and is have to software was $X bring But we'll our orders in and look recognized. that and software that move at

provide again, should better grasp where Samsung have but with we - we So to be updates. quarter, a on are come I think, more next able to

Jack Vander Aarde

Fantastic.

from a a lot second a revenue contribution quarter it's there's in of conservative Samsung that strong like guide, guide. Sounds issues, embedded

the probably So down me, there's it you here guys. room as you. to that's great progress. means for That's upside Thank for road hear

Michael Pope

Jack. you, Thank

Operator

Our next question comes [ph]. Bergen] from [Chad

Your ahead. open. line go Please is

Unidentified Analyst

education really approach just setting funding. federal work you districts Boxlight. and all kind seems that a the I terms good taking an know I advantage that really, are quick for the work, assistance Mike, bottlenecks. be in mainly to my Hi, because good of just the to for grants, afternoon, school that biggest the center of of take and actually comment, on in capacity line of of federal congratulations quarter I to the for up apply with one really appreciate

kind that, that so of an you've acceleration in demand think and first that of my for question of X% requests are I to you only maybe thing, good help And strategy of X% that, districts of a seeing because I kind deployed and kind about given to school been really have already there, I've relates type funding spent. for recently think that heard

So opportunity it huge seems there. like a there's just

Michael Pope

good a that's Chad, question. Yeah,

funding assistance vast the in Act. answer federal of significant Absolutely, a is questions yes, even has access been the accessing the or in So we're funding. seeing CARES of spent not ramp for requests majority the and

to maybe ago, as an weeks half showed few update that a maybe as Just spent. that saw much I been report had

allocated. still or amount a there's So substantial

still even that a of there's CARES to be Act first yet So tranche is of substantial amount money allocated.

ramp, the where weeks feel be and resource, we putting like internal right seeing more ran. So the We're that a to is questions ago, couple going answer is, yes. and we're the to that us timing having of resources, more as a produce we just guide out and

Unidentified Analyst

that was could of the you little of to material that are at And Are just to by going maybe expecting one maybe that. on the of of in increasing Great. huge area? from think, in to color that, have if a demand a so with standpoint Well, if point on you'd kind here more the comment XX expanding the team, much was going States. you're think ear wondering, that where you kind the I I team around you I seeing sales just kind impact sales I - that that wonder increase to at and tied XXX Great. you're caught in of things the that provide from my least, you're have?

Mark Starkey

Mike. me say first, let that Yeah,

make clear. to just yeah, So that

these - external, brand. who can So currently, sell salespeople, our we Clevertouch partners have these are are

Okay.

extending tight because we at Clevertouch, exclusivity partners to moment, the have because are channel, who very a salespeople control more able we with we we sell Tierney, And discussions So Trox. XX exclusivity have to only about that Trox because very, sales Trox. about are of have have than and the significantly are agreement people. that Tierney merger that in and XXX between

to about our amount increase XXX. to merged salespeople, from with of partners they've who XX Clevertouch sell therefore, significantly will Now Tierney. are And the able external

eligible So increase able people by Xx. are sell who and are our as employing of But those people will employed not Clevertouch already it's those by sales the people, number now partners. to about

of So part question. that's the the first

Absolutely is, the The there XXX%. second part there? is is, demand

Unidentified Analyst

Yeah…

Michael Pope

add. I'd Chad, And,

to clarify through that, channel reseller sell partners. Just we partners, value-added

we And we across of end-users. cases over those globe. the So in X,XXX have don't direct to most sell partners

We have X,XXXs aggregate U.S., the partners reps. But Europe. majority of throughout and have of are in in of XXX remainder those partners the about the those for example,

Boxlight have selling about hearing salespeople dozens through we of these our But Trox, You're and reseller to partners. channel that solutions brand. there's support our selling help of we X,XXXs there represent reps them. support are out Internally, Tierney, but and

remarks XX% partners those you mention make his top-XX those heard our partners of in that of of Pat sales. up the total Now, just over

of and So solutions. of from have we beyond partners do have do number Tierneys that substantial sell we the Troxes some the very partners a world. our But that order do us like significant and

Unidentified Analyst

little in I what was wondering great, forward-looking, if And thank you. Great, bit seeing software of terms comment terms the you're a Okay. question is, of you final on, focuses solutions. on might in my

my the licensing of beyond terms software I is be Thank product to think horizon kinds of the of probably software the those assumption, for that say, hardware. course, are going couple think margin commented things. just MimioConnect than, you higher solutions And and aspect the are of a kind times a what let's in you. And on You've hardware? I seeing

Michael Pope

Yeah.

product solutions way So, the different we look our think we at is of categories. Chad,

it So sales. we've XX% starts of with total our represents, as Displays displays. over mentioned,

are include we our audio have also the So we top sell those Accessories T-shirt. and but that's cameras. our flat-panel accessories. category. displays. for for But on document largest displays, largely Then interactive solution and And of tablets the stands mountings that,

software, we a or solution. those XD includes that We sell devices and STEM. category. have Math, then, STEM fit Science, that Technology, printing break robotic out solution all response And a accessories. that's for standing We student into Engineering,

self-paced we that, other in And professional we We and variations some professional a have providing large online charge with and division have lastly, sell. science a device for And cases contracts, that in district-wide cases, that. provide training we're or services then, provides we we between. that development in

X So have we product at. look you that categories really

into march today, those interactive able growing, which other categories our of Now, the our much is displays but displays. categories, than are less so to that increase vision the part and again, future, weighted heavily is displays, company as product toward be at to rate largest the mix interactive aim the for we faster

And So soft accessories I'm that, will a total we much and higher higher giving solutions. will and absolutely, as percentage you all that yes, margin. services think a those roundabout be answer our be of STEM are sales, of much

Software cost entirely us. margin, in is because - actually operating And that of about up down expenses. is almost for that's margin, in and margin asked the our you most captured software gross profit

margin. little But percent you very from internally, XX%-plus those differently. or most also, accessories, margin. But XX%- at Now, a assets very, standpoint, if of are we high then if evaluate can you're looking an look be external the

professional percent Our XX%-plus is margin. services

Our STEM are solutions margin. XX%-plus largely as much as

company, the large that gross our mix, part absolutely And strategy. we're software as again, is focusing improving improving margins, of a profit product on and a so,

Unidentified Analyst

Thank that's that. answer the again, had, you. quarter. Thank comprehensive And actually the you. I and congratulations appreciate great to a on I more questions Well, all

Michael Pope

Chad. you, Thank

Operator

appears have time. Pope. will at over I turn this no Instructions] And we further that [Operator it Michael to now back questions program the

Michael Pope

you to when today Thank look on again and us first XXXX report for XXXX our you, August results. forward everyone, We support your our speaking call. quarter joining for conference quarter second we to in

Operator

Thank does for participation. conclude program. your This today's you

time. at You may this disconnect