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Boxlight (BOXL)

Participants
Michael Pope CEO & Chairman
Mark Starkey President
Patrick Foley CFO
Jacob Silverman Alliance Global Partners
Jack Aarde Maxim Group
Brian Kinstlinger Alliance Global Partners
Call transcript
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Operator

Thank you, ladies and gentlemen, and welcome to the Boxlight Second 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 the securities laws, 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.

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

Michael Pope

thank XXXX reporting million XX% Good quarter, record for accounting, and $XX adjusted in in $X outperforming our and for EBITDA. you acquisition-related We purchase million call. afternoon, delivered internal joining everyone, million guidance earnings as external another profit in second margin and orders, over targets, both our again, customer adjusted $XX gross quarter revenue,

For $X first in revenue, orders, in $XX EBITDA. half and million we of million $XXX the generated in adjusted million XXXX,

equity. second stockholders' the We also $XX in million including million balance healthy in $XX in million sheet, with concluded quarter in a $X inventory, $XX and cash, working million capital,

in to substantial and to strides our generate expect quarter sales, fulfilling QX the positive commitment in $XX strongest growth income. Backorders, are entered strong goal EBITDA, million towards leader. in million our and with net and and to making seasonally are $X our We We profitability, $XX adjusted industry improved we we million be

robust execution result to growth of our solutions and both Our strategy a customer is industry support. and a deliver best-in-class on strong

papers. the year. to customer financial published stories progress XX studies, our bringing - excuse call, our studies our in case XX improving well total success and case to have another calendar addition is XX this documented me, Since to our white last In performance, we success stories

from innovative College tech, such students Our Hull Greensburg, disabilities to such education, also Children made as the studies School We've where higher in benefit U.K. range Pennsylvania with for school case in diverse schools expanding Bennington, Nebraska, across underscore districts multi-campus as which years. These Heights Exceptional expected the institutions an the for technology Clelian in few more like open impact education from is schools enterprise on and X the schools public systems environments our have globe. strong next on studies solutions case impact to our within

Accessories general goods, Audio we addition, announced facilitates New extension a In centralized services, including X,XXX of institutions. Equipment needed technology, Visual and contracts by the for York to educational those services office Services. General The of X-year and Office close agreement State with

Google partners, available specialized are Program In both our Women-owned on products receive Google can that division Minority our Educators Advantage via a so Boxlight Partner EOS tools. on Our Owned and businesses. and businesses Cloud development Cloud reseller including joined May, contract Google this professional partner Cloud Service-Disabled focused the service as Education Veteran

options In meet diverse help learning team and parents, teachers, June, when Also teaching Financial education connect providing developed financing the guide introduced with all EOS EOS teachers June, payment of students, students. support district in all of professional their partnership our program, schools ways customer more equipped make offerings community. through The in help Our launched relief as educators ESSER is Services, understands involved benefit to social-emotional federal stakeholders, Capital, administrators, funding continually as academic designed we to strategies EOS investing need offerings with to the those that U.S. development of and programs including and TEQlease and and education design well Boxlight what education provide in better use in offerings best to technology technologies. effective progress learning support, criteria. families. customers decision-makers our more to

we Also, our improved June, robust InAVate Educator Clevertouch won from cutting-edge at In X were Technologies Hybrid this brand Award finalists won Growth Lab the With X coveted including solutions XXXX learning innovation technology Remote recognized classroom EdTech learning year our Classroom their technology that Cool Tool innovation. remains InAVation style and for Mobile for System. growth MyStemKits Learning, to Curriculum, In year. Our capitalization in continue platform named inclusion platform, as solutions for XD MimioClarity April, Award the Audio Microcap of Breakthrough our market place for MimioConnect Russell Printer, to and the EdTech announced were Magazine. the membership and rejoin portfolio Essentials value in for MimioSTEM be Awards indexes. selected our Robo appropriate awards, This the Best in we automatic the Bundle, EOS provides and blended Business Index. our June, blended for year MimioConnect of

I We are any outstanding been than in results. a provide never for are call a sales or more better over Mark industry solutions, equipped growing into excited President, additional With our history, company, or time to we uniquely insight will Starkey, best our There talent, and our today loyal with time exciting now has better our turn and and for positioned at industry our the to partner network. optimistic and that, future. the

Mark Starkey

this to not revenues quarter profitability, support. their Boxlight to opportunity without growth terms Thank and and continued employees, of another investors, impossible record our our of for you, thank customers QX I in Michael. be want and was take would this orders, as level our

of we numbers and earlier, booked million a million, then for growth than was growth is XXX% corporate represents the for represents a sectors. order education booked year-on-year over intake orders If the pro HX orders year, both The in As and huge The in a $XX in Michael growth in market intake organic forma more last value for orders year-on-year see in is XXX%. we which Sahara of that $XXX growth. order XXX% in rate QX. record opportunity QX Boxlight. reflects stated we That include in

$X.X significant million Age orders during million Unit Howard from of the million and the Africa, $XX.X $X.X EET million D&H, from $X.X million in of $X.X Some Australia, in Central Atlanta in and distribution South in AV Maybach QX U.S. in Tierney, $X.X Europarts the X%. our $XX.X for accounting from Northern from Solutions QX, total, In DK million partner, million in of the Digital IDNS including schools, Solutions from Solutions Outside XX% our Denmark the million Technology million Ireland. ASI Public NOX, and U.S. Technologies. received EMEA $X.X partner, U.K., million Data $X.X from in from included from $X.X U.S., from million million Finland, from Projections, of we from our our rest orders of $X.X from with orders, accounted Interactive key XX% million for orders $X.X in world, for booked $X.X

market In that for we U.K. interactive in top flat X the very in to panel terms hardware, remain share, of soon. #X expect to our the move and

UAE, Belgium, the Austria, position Netherlands, market in Spain, Africa, we top have IFPDs. and the are Denmark, for Finland, Sweden, Australia, #X provider and In a X Switzerland, We share Slovenia. Ireland, South also

opportunity In new remains significant ranked XX sales months, the Germany, in we reflects our doubling for the X see for team the where are another in quarter. opportunity we U.S., sales share #X. we to growth. This that we And our growth in force. where market the biggest market the #X in Germany, due ranked we recruit the in next are room have XX sales and significant U.S., with are X% hired past in Our heads heads investment organic approximately

the in QX on warehouse to our our managing sufficient and or fulfill targets. are and inventory have seas capital We well our working facilities stock either

and win California, out screens to to of a wins school than the to a quarter we our X,XXX end-users, than very with In district terms had business we be school to XXX $X more panels continue chose expected In worth we who expect In more over HX. another do in more X,XXX to of XXX ordered panels another district, Mimio large of QX. with who than had ProColor a QX in in Maryland, to large In across that million. more in we with Georgia, globe. screens X,XXX law classrooms, a significant started grow have to we panels and roll up than stands district ordered fantastic

base. We interest have seen see our customer double U.S. solutions more than STEM the pipeline we in in our for within these and QX, growing

screens, touch Real the and sector, purchased great players including of U.K. We've chose booking some of the wins ecosystem can great for also corporate Blue sell had screens. These a and sector, leading how some a the examples SISI also ecosystem, wins their UX media headquarters, in including a a RIO, our corporate U.K. range solution great entire customers. Clevertouch company Ideas both and we new education-based with who panels, light Clevertouch in QIAGEN including Organization, the are police had bioinformatics into our in U.K. room We Pro Clevertouch who full a Labs, non-interactive force in

term-based sold for will repeat we licenses are are when basis create licenses QX, software on During future than more Samsung business they and ongoing software products. renewed. an These X,XXX X-year MimioConnect

of In and sell licenses software the product attached $X.X in OKTOPUS. X,XXX had to as from to Samsung's MimioConnect total, MimioConnect expect software is sales. We during HX more million HX hardware sales than we

software our Clevertouch expect monetization revenues our HX Solution. of for we products, of these suite, greater are in We software LYNX Whiteboard in million exploring $X.X than the and particular,

be create stream annuity LYNX high-margin the and Our expectation SaaS-based and a of will is that moving our whiteboard solutions forward. MimioConnect foundation

panels. and of solutions our range range These corporate for order education In Clevertouch will the QX our Mimio will an in QX. use quarter important in growing both is demand terms markets profitability. XK solutions and revenue, summary, provide for see and outstanding ability. we customers launching This interactive intake, we with terms their new both camera and during tracking of be Zoom, full products, In WebEx to as on Teams, was

traction and channel. in out our to Our sales we market, continue the build solutions are gaining

is As due margins business percentage million. with gross guidance improvement and ability leverage The or adjusted higher in to Michael without stated XX% of $X the of for adjusted EBITDA substantially earlier, revenue is base. the our the EBITDA QX profitability revenues million cost increasing current approximately and $XX to

than excess the intake million. QX $XXX revenues $XXX to will of XX-month ended forecasted will With Foley. be and the now Our end greater be our order turn Patrick trailing for that, the million September over XXth will I of XX-month call our of period at in CFO,

Patrick Foley

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

the which of U.K. total by EMEA XX XX%. U.K., $X.X Denmark, which XX%, million, million. revenue which region, of across the revenue XX% was country QX, the Australia. largest the was The single $XX.X is approximately the and Americas, XX% was U.S., was XX%, million, U.S. of markets, of X%, top Finland. For the the QX customers mainly based $XX.X and $XX in of with world or are Australia, $XX.X million, our total rest sales in customer these number The and namely at a million, represent

XX Just top approximately to quarter the over XXXX. X/X of similar our position pretty which total X sales XX%, is are by covered customers,

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

However, higher Xx that as We XXXX. by shipping reported points. remain costs are have previously, we costs reduced up where to throughout increased will normal rate X global percentage margin seeing anticipate

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

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

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

production through on As XXXX of months times X puts planning to capital. working certain and lead XXXX, of X additional anticipated with commenced on hardware have already scheduled of solutions, which today, on end the pressure QX we

we have and formats. results. increased to XX-inch We negotiating second our review have education with XXXX, XX% from our which follows the up sales, by to was seeing manufacturers as facility these display $XX screen Sallyport's Commercial will XX% shift been quarter with of mitigated and million. of interactive larger with XX-inch all terms million approximately $X somewhat In improved trends this key panels, QX sector now I Finance, we credit represented the

X XXXX, June XX, Gross increased XX.X% results XX, as financial XX, months due primarily XX.X% acquisition-related the XXXX, were June X the compared for the to of XX, X margin $XX.X margin to compared the September XX, months adjusted, XXXX. XXXX XX, solutions. the net XXXX, months X months follows: $X.X $XX.X ended XXXX Our the June ended XXXX, was $X.X Gross million June profit reported the as ended to adjusted June and ended was effect of in as for resulting ended million Sahara XX, for months for to accounting. revenue XX.X% as XXX% gross for X margin were as X for months the XXXX. compared a the in profit our months June demand for for million ended ended The X and acquisition increase million for June purchase was

As effects X with settlement the for XXXX, percentage certain XX, were net September reported XX, June XXXX. to expense million of resulted as of months XX, XXXX. in by challenges a points to the COVID-XX XXXX. of in supply months as additional $X.X compared with the This of XXXX X the margins throughout for to for months to due $XX.X from The June costs expenses of QX and for XXXX, XXXX, June approximately The pandemic. recognized months months due been have to freight income increase expense customs The certain for million compared exchanged borrowings, acquired common reported upon $X.X warrants. operations $X.X X derivative is Sahara ended ended associated additional stock XXXX, anticipated June other losses chain costs adversely increase expense net in the the debt expense and recognized was million Other increased that obligations caused increased X ended overhead impacted net the were net remeasurement gross XX, a for associated operating compared months Total ended of X of ended the of continue in loss XX, associated shares, with associated of XXXX. $X.X X $X.X June was as primarily for the loss that of common interest million million the million increased ended with liabilities $X.X the company XXXX. million million million X $X.X XX, were to June expense $X.X gains on by

expense XXXX. net of profits the to ended comprehensive beginning $X.X XXXX, X XXXX XXXX. XX, over the attributable fixed Our value of X.X change The loss U.K. signed and shareholders foreign adjustments the XXXX. with for statutory Series liabilities deducting and deemed the excuse the tax $XXX,XXX $X.X on and Series revaluation rate dividend X, to XXXX, June cumulative the million to U.K. for respectively. $X.X income Total of current say, the reflecting ended redemption quarter months GBPXXX,XXX, I following should rate translation preferred the June for on me, $XXX,XXX the U.K. contribution XXXX taxpayers B to billion, of shareholders loss amendment B and months and XXXX Bill X consolidation. with June After fair the was in common X.X Finance XX% XX, currency tax was shareholders XX, remeasurement effect $XXX,XXX million April June XX% booking in the following from a The - to required in increase tax deferred an provides

X share of million million XXXX. $X.X gains/losses quarter $X.XX of effect the for remeasurement the loss months from million ended the for EBITDA June effects diluted and as respectively. $XX.X ended XXXX, and June and XX, connection $X.X With in Adjustments XX, X.X months million and $X.X per compared $X.X EBITDA and basic to XX, for million the X $X.XX the X XXXX. outstanding million X recognized the to a had instruments, million XX, million million settlement The months adjustments was the stockholders' ended assets, common XXXX, $X.X gain per ended in acquisitions. and ended in million and working the months for cash liabilities, $X.X June of XXXX, as net derivative June million stock-based was June compared Boxlight XX, in $XXX.X the debt, in to months $XX.X EBITDA X and At XXXX capital, compared outstanding. gain X compensation debt for with the months equivalents, was share loss June ended shares shares in XX, of basic $XX.X for ended June the XX.X XX, XXXX, certain June loss XXXX. expense, Adjusted $X.X XX, months EBITDA issued loss for X diluted loss and equity, cash include XXXX, million purchase accounting million preferred issued, gains/losses of the to total upon EPS

for XX, results financial acquisition June XXXX, of XX, X $X.X compared million margin the the the as compared months X the X the XX, for XXX% our X in months June Sahara as X that June solutions. XXXX XXXX was accounting, X revenues and purchase as adjusted months due demand to to months was acquisition-related for was ended $XX.X June XX, to of XXXX. Our effect increase ended ended ended months resulting XX, were were gross margin net the X for profit for ended the in XX, XX.X% XX.X%, XX.X% for a follows: reported adjusted primarily the $XX.X and for million as the Gross June XXXX, for million ended margin increased for profit XX, months XXXX, September Gross to compared $XX.X months June XXXX. the as ended XXXX, million June

increased As associated reported with XX, X customs costs with operating additional million Sahara losses recognized as $X.X for XXXX. the of million Other million in settlement of impacted expense operations XXXX, the by for XXXX, obligations The and the of net XX, XXXX the were XXXX. $X.X caused ended June been $X.X increase with expense from approximately challenges debt was $X.X $X.X X due expense X throughout months is $XX.X that in of effects for XXXX. of the increased increased million adversely chain by shares, of $X.X QX upon costs income compared associated months remeasurements liabilities COVID-XX to Total the continue losses XXXX, X the exchanged increase percentage resulted borrowings, net X months associated gross acquired on primarily to of associated This anticipated to for expenses was to XX, warrants. margins were freight the June months common stock September million additional million common points in ended ended and June certain have income for the XX, pandemic. with as due ended the of June in interest recognized expense that million other were XXXX. The supply certain to compared overhead derivative

stock-based assets, shares million open and stockholders' include in connection X.X was debt EBITDA the instruments, At XXXX, ended $X.X up share XX, issued $X.XX in the June $X.X $X.XX for we'll the million X of June diluted ended for cash XXXX. June on a ended attributable months the loss ended Finance loss for months compared a current common net for an months As X, compared million respectively. shares to adjustments capital, of call loss to questions. XXXX. was million in Bill X June EBITDA Total With signed for XXXX. as tax $XXX,XXX million the to XXXX, $X.X income months provides to $X.X $XX.X certain XXXX, $XXX,XXX XX, of the $X.X effect June for and months was amendments that, was foreign the with Series and GBPXXX,XXX and million tax $XXX.X and as gain XX, basic XX, a U.K. loss adjustments cumulative beginning and and in currency redemption common the for preferred to Series XXXX. of June million per June with $X.X purchase reflecting the XX, B X.X XXXX. June million million in $XX.X XX, sorry, total issued, - liabilities equity, ended X upon and XX% over Adjustments fixed and a the basic of months translation settlement remeasurement rate share $X.X loss XXXX, of redeemed expense and following fair loss XX, taxpayers a ended to XXXX the liabilities, $XX.X B loss above, XXXX, from X Boxlight compared working ended the in diluted X million months and XX, the an June quarter XXXX preferred EPS derivative comprehensive $X.X deferred noted to After gains/losses million U.K. value accounting change the the to had XX, was shareholders $X.X increase outstanding. ended dividends in and million per in of the EBITDA consolidation, XX, deducting XX% debt, the equivalents, X effect for outstanding ended million the This X.X EBITDA required for profit our months net statutory June gains/losses June cash and XXXX. U.K. to shareholders the loss rate X $X.X the deemed of and loss acquisitions. of XXXX, effect the with X million, months book the Adjusted XX, contribution shareholders million XXXX million the tax June for XX.X revaluation with year-to-date respectively. April expense, recognized The from X compensation for remeasurement for The following XXXX,

Operator

[Operator Instructions].

Your first coming Kinstlinger. question Brian is from

Jacob Silverman

on Jacob few. Brian. have a on Congrats I quarter. for the

may I queue So get the back after. in

your I And outside update the I quarter. how in in to then you're an elsewhere? to wanted touch terms on schools, I demand for guidance was of much adoption of this what through what is the the get kind First, for U.S.? U.S., wanted third from of seeing terms for especially of in of and funding you're Europe seeing K XX in curious

Mark Starkey

I that Mike, would to want you one jump in? or take can

Michael Pope

and can Yes. feel Maybe you start, I in. Yes.

Mark Starkey

Yes.

So look, good well. question. getting very But also We're seeing we're is demand in EMEA exceptionally demand the everywhere. strong The U.S. across demand exceptionally strong. strong, as

U.S. In But then just going and guidance, terms we're in in demand, don't broadly, a me. number slightly be exact over saw terms of EMEA. probably QX I the the the QX it's we similar what to of to have in lower XX% in split But demand huge of front in everywhere. It's seeing

Michael Pope

Yes.

I think it well, Mark. covered you

reported we sales So at QX, percentage Pat of were XX% what sales larger if and look about quarters which a our from U.S. that and from QX mentioned flipped of yes, you where previous we had XX%. U.S. Jacob, you look, EMEA was for around from the the if from our then

the you're where see think of much more the stronger. same is the to throughout U.S. rest going to going the of be I year,

Jacob Silverman

Backorders in million do much how of $XX the the quarter? expect to third recognize Okay. you And

Michael Pope

should number there'll a that should so third additional still and to us bulk be bringing of sales million. we're majority all minimum gets the that quarter. recognize the be we within if orders, the the of recognized $XX Yes, beyond course, that, And that of not of backorder that,

Jacob Silverman

and One back Okay. more I'll in jump queue. the

fourth with could continue give You was margin in investments but few over upwards you growth, a costs? outcomes I freight - us Or with the chain supply EBITDA impacts remarks, talked coupled do gross ticking if about margin prepared around expect the bit it for some the on a in quarter, you of the in we and curious shipping range next should uncertainty foresee quarters? to in

Mark Starkey

on jump to want you Michael? Do that,

Patrick Foley

think of we Pat. holding it's I currently kind the will of as Yes, kind are. So Jacob, see they margins

the as in everyone We second know the world for have continuing part increased of costs we far increased June. the continue likely throughout shipping the There the and that, as post-pandemic, well seen XXXX. of and to of of kind shipping pressure costs that's on even rest to year has so been kind

So key of is by kind been the maintain and margins. we we passing possible the terms explained And prices to support actually have to and where revisiting some of doing as with kind increase and on and the those things manufacturers of of actually out mitigations, core. one actually doing renegotiating also some that that basic

improve we what doing on we're can So to that. actually

will outcome a it think I be similar there. likely with maybe little uptick

Mark Starkey

Yes.

I a good think answer, that's Pat.

to little add a more bit color. just So

we So margin if for you or guidance look provided The at about about margin. QX QX, XX% EBITDA our was XX.X%. is XX% EBITDA

relatively place. And steady as the of So use, profit in margin, profit gross same to gross held you be to rest QX. I I the from again, margin think that's we then far ought a that QX And similar safe number through the we year. rest throughout of can as think year, the a

Operator

next Your Aarde. coming question Jack is from

Jack Aarde

guidance Okay. on results again. and solid Congrats strong

obviously, business perhaps revenue, importantly, more was but Sahara business So both organic from, strong, the contributor, a was strong just question, strong. first exceptionally exceptionally

combined it looks plus half revenue also basis, revenue all fact, second was just your actually first on quarter. revenue just like In more the second quarter in the XXXX a historical total combined, than XXXX

a quite transformation. that's So

like First, organic remind I something said you the percent. organic quarter? guidance revenue me think the revenue or what can you guys second growth for was XXX-plus pro forma

Mark Starkey

Yes.

That's was growth the orders, organic orders, QX in growth. organic Just XXX%.

Jack Aarde

Got you.

clarity in growth in back well And orders XXXX? would see second, organic the half appreciate And I how then as then you of XXXX? you organic expect Okay. do during a the there. growth orders in to robust continue

Michael Pope

Yes.

more don't lot unprecedented Jack, think expect seeing that. of demand much We're that more a So a a we're to plan solutions. on going is see for slowdown. of our of the we And I lot or we answer seeing

We haven't se, of for given but sales million guidance provide guidance on $XX the that orders in QX. per we did

we today, would out expect But as far again, don't on we've based guided. as I that's seeing we're say So a slowdown. what

the to One, driven going of uptick in several we've And by team. in our quarters. over see that's things. demand a been couple investing continued You're next sales

We it's heads that's the example. as in heads You of XX in We seeing that. starting education, funds seeing U.S. the The believe is, course, well competing spending that have unprecedented of one coming larger quite talk right the growing heard Mark best by our and another compete and market the And two, our of of U.S., most with industry to the ESSER federal fastest-growing categories add - we're would in because We're in, almost allocated particular, sales our Number We more market. which solutions we're we which the we budgets as billion now, in I Germany in market. about be on example to added sales in well then was two solutions. strongest team. are money. supplemented spent. $XXX added more that

that's increased going beyond. not a out best combination the solutions demand. to a this on two. a couple quarter So it's team is and This and resulting great And growing, of market, years system down lot or of money a slow the going of in a in is in

Jack Aarde

this lot moves, sales of just the to follow-up fuel - of funding general. Fantastic know in hear. last I the half made what a one you a aspect you year on done made Great. then is of in you've of actually guys first really federal And to could have the actually, points here quarter,

trending point or moves kind such traction a that You've how get on lot help districts to is progressing? funding noticeable how federal to you there to educated that's as purchase describe made or can receive any evidence technology your education now to, just yours. of - How of to

Michael Pope

Yes, coming the now know, we funds. is are money orders right substantial from in where we receiving federal fact,

into put these working, have we for efforts measurable we the receive absolutely and support able that the teams And to So system be results. to play supplementing we are apply funds. districts and that's the absolutely have working districts,

it's districts, or I substantial. tell Now haven't will reported but we numbers that specific specific you

Jack Aarde

I'll kind third Mimio the quarter of one then you Fantastic. and in provided just can outlook hop you me, think back quarter? And Samsung an have I said for queue. second One, the or you expect then And initial a number in then And just more sold? you were target again that review the I'll of about licenses what follow-up. question licenses and

Mark Starkey

Yes.

sold we products. Mimio than relates Samsung QX, That X,XXX during obviously, licenses. So more to all

being Samsung. for licenses We are attached guidance So to basically, gave where HX.

more And expect sold X,XXX again revenues, licenses, of in expect Samsung. than software revenues, HX. $X.X to be million MimioConnect We attached we to licenses than more terms in total

looking we build of So how part are software our business. at out the we

develop especially also coming at that that model, whiteboard, quarters. and will MimioConnect on we and are the developing work be We looking something SaaS over LYNX around and

Jack Aarde

Got as quick to it. just And follow-up then that. a

licenses licenses are in these so how In just sold? sourced. pushing licenses can sold, Samsung of being are about terms than these of an talk terms you were of these Just quarter? playing more active channel how sales role how the the are sales being last Is they being dynamic

Mark Starkey

look, seeing they we - the are, significant I mean, line. yes, Yes. are is bottom

U.S. any Obviously, the all sold in large very our - automatically opportunities education include but We and establishments is IFPD in with software. will education U.S. Samsung, MimioConnect the are in the sector the hardware seeing Samsung of the Samsung significant some

So how basically that. our with that's will along revenues grow

to make in - the We with deal quarter, a expect have space that this in did we did announced - to the education into Samsung effectively But more traction plenty as last of sell U.S. gets them year. grow software we sure Samsung we we and we

Jack Aarde

it Great back I'll the queue. that's hear. me, Okay. results. to guys. Again, for Fantastic in jump

Operator

Instructions]. you. Thank [Operator

Kyle next Laflamme. Your question coming is from

Unidentified Analyst

quarter. Great

have a of the or be when I hell quarter about know that? release. question. real revenue guys asked a actually. you'll My you just man a had funding government able report to Do guys You from the quick

Mark Starkey

that The from are revenue the - question. for now. reporting we thanks Kyle,

that spent. those are be we ESSER from was hit last initial first year, to The and to next of March the recognizing now being June group Cares Those year funds. when of the of spent was was II, which Act, funds and that year, $XX the end so but fund. Act, billion, of this initial funds those was we're got funding starting that CRRSA billion was funds revenue the tranche ESSER that passed. year, last are Fund was deadline was those that just hearing allocated in use is back So fact, are the and That that another $XX.X last all extended,

way that's going going put ESSER that's all be billion, Biden hit But revenue. We the to and is will may spent through in what to right was is is extended. plan which through we're through, we XXXX XXXX. believe, seeing. was American be another recognize now, It course, The plus that Act, place III, that last of the Rescue batch, the $XXX Plant

that tranche, the you're that's CARES money. the but spending our several to years, are right funding out So was now spent being for from solutions seeing first see Act which we going next

Unidentified Analyst

Awesome.

Operator

coming Your from question is next Kinstlinger. Brian

Brian Kinstlinger

ongoing more. conversations merger, the there, beginning Tierney us Can how updates following and on going relationship, Two and to see give any recent it's how benefits? you're with if are your Trox the any you

Mark Starkey

take to want that you Do one, Michael?

Michael Pope

Yes. I'll take Yes, that.

yes. So

partner both that partners you're a our wasn't partners. the was as large year. that, Trox are significant was of behind. too with in so merger, industry, those very Tierney #X aware, So far actually far this

that significant was for so strong. relationship when both together, they an merge our is still But And absolutely us. with event

As doing with have, across maintain where the the nearly reps agreement are them. agreement, numbers. to our We've those and understand, We're we exclusivity And an supporting place. we they But for the Mimio down is on Clevertouch merge, And going which to XXX Tierney which our working to their U.S., working still able teams. is put in had is we're be works which in as the focus they an sell to them some of them main to support that well. to in our as brand with big consolidate focus. them brand expect doubled U.S. going They're Clevertouch to continue solutions we're already our on companies

large sales with. a are be have they So force, force partnered want and that we they a to

big with again, Anything that to of have so on Mark, a some that? add, them. and expect we numbers relationship great group out really And

Mark Starkey

Yes.

I Michael. well, covered you think it

relationship. a we've - got it's fantastic think I

well. their very engaged we're throughout great much right We are And things business at expecting as the there. exact level

Brian Kinstlinger

right. All

the is interest to seeing recently services. Clevertouch curious much And you're mentioned some how and call, progressing also on press professional sales there? that how just releases, You market

Mark Starkey

to? Clevertough you're Do you referring sales in that what Is mean corporate?

Brian Kinstlinger

corporate, Yes, yes. for

Michael Pope

Mark. ahead, Go

Mark Starkey

that I the out sales don't sales. impacted from we more yes, our see separately. education break COVID with force corporate mean, in opportunities a corporate team. But U.S. to separate sales We compared invested huge sales know significantly We have we've were there. much numbers just recently

quarter's I think the announced last that I in actually results.

our coming But probably EMEA, XX% the starting room are from corporate. there just there we're And corporate. it in has growth very, the of XX%, in And in So U.S. revenues margins in higher is for significant. corporate. very

Brian Kinstlinger

Congrats the on again. quarter

Operator

Please for questions you. back There Instructions]. further queue. Thank Pope to no the [Operator in will I remarks. ahead. conference are you. Thank hand now closing the Michael go

Michael Pope

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

Operator

this conclude Thank you, ladies and gentlemen, does event. today's

disconnect at and Thank a may for You wonderful you have participation. day. time, this your