Boxlight (BOXL)

Michael Pope CEO & Chairman
Mark Starkey President
Patrick Foley CFO
Brian Kinstlinger Alliance Global Partners
Jack Aarde Maxim Group
Martin Roth Ferret Capital Management
Call transcript
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Thank you, and welcome to the Boxlight Third 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 with 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

you yet $XX per for Hi our exceeded company, income to in a EBITDA. revenue, earnings and third and joining for positive result. net adjusted tremendous everyone, We date the and in quarter another as strongest again first share. quarter time thank million positive with delivered our guidance $X million the with And

For five have now growth and reported we positive adjusted consecutive above market EBITDA. both quarters, revenue

million we million the For working assets. and ended trailing months including million orders, and sheet, with net $XX an $XXX quarter $XX in in in third capital revenue QX, XX in million $XXX adjusted the EBITDA. concluded million in $XX reported We improved balance

and double-digit year. the expect last the million globally same deliver over see quarter revenue to growth fourth growth continue XX% We for to in representing $XX quarter

in Vice October US, Senior company On manage the here, last EBITDA. has at Audio President Light's profit look an Intercom. control. growth ecosystem. strategy XX, We campus front million in representatives of including school classroom The with has company's sales, all Jens in into identified solutions over which sales products product campus adjusted fully XXXX in including approximately includes million Juno $X XX in company audio and pursued accept the Canada, outside of and in for and going of FrontRow row trailing and tower and solutions. UK forecasting greater of XX EBITDA. actively generated into our XX we California displays in and United visual student Solutions solutions as employees greater XX% audio, was Headquartered and suite Box microphones, the sold top FrontRow The and standout ended FrontRow Australia. than line communication, communication, with gross the Today, campus $XX X,XXX one to in year our approximately for countries, provides bells, than For districts teacher XXXX, FrontRow and the communication audio based full States. integrating are representing IP our its XX% audio XX% at million $XXX unaudited paging founded the the Boxlight opportunity months position array emergency we the and forward are XXXX solutions XX growth We Petaluma, will installed the located CEO audio classroom distributed Holstebro guidance late revenue forward. and Boxlight basis over

the We front also substantially demand increase to for expect row solutions.

leverage and we team As global our channel. the resell sales

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training cloud Our professional functions. upgrade, provide earned partner to education stem provides cloud solutions service as outside professional development customized an offering as subject and our professional our we for training offer us educators us Google program. for recognized partner and organizations in Google further a to stem and turnkey advantage the This support with to this service with are education a broadening August market specific workspace with experts partner, development By by the teacher Google our education, development division Google to earning designation, allows enterprise matter us. recognition education Google partner

to to solutions industry learnings learning Armenio tech recognition Xd cutting awards bundle blend, continue for Earlier We were displays, learning kits our connect, our north America. primary four in event edge best year's and for for color recognized solutions. back school A professional and August. We tech tools platform, largest this education. robo month, Pro for winners and and EOS for the and interactive secondary at In receive levels of innovation were by XXXX we two and printer, of development both stem pro platform my this Infocom,

best content touch plus as clever and platform in Our winners. both interactive impact recognized clever management stream live show touch were touch

platform one with blended content. Samsung collect expanded technology solution. combines class, like partnership recently collection with best development state Samsung the class art and to in the The a also offer We Chromebook document box menu box view our to Samsung Chromebook our menu one technology, professional connect, of our learning light camera,

leadership moment and like employees. recognize team and a diligent amazing to take our to talented I'd Lastly,

to a hire is direct a as tremendous ability and result Our our of company success retain talent.

where to is a our collaborative a member motivated conscientious company, and As of our mission. culture to are we team every growing about nurturing and enabled contribute supportive collective positive,

feel that each receive they support managers. from and company-wide that they enjoy other Our survey working confirmed recent of need employees our XX% the with their

will President Mark positive our Starkey which to culture, a call I the to additional goal our continue to will the and propel with turn winning to to industry provide now over lead insights. us that. We will foster

Mark Starkey

Thank light, this quarter thank performance our another to take employees, this not opportunity I been of customers, possible for rapid investors you, our as Michael. have box and their support. would and growth was our want QX continued without to

education forma earlier, XX%. include stated The a order of Michael in orders we year. the growth orders booked we $XX for in The value on growth QX last year sectors. growth year in numbers organic months QX on orders XXX% previous impressive is orders nine first million increase in of the the of $XX booked. nine nearly compared year nine represents see rate for year of As we that million booked and million in is intake opportunity that both for represents year, months If that in first $XXX corporate booked huge in then fold with the at year order reflects the market ARA this pro intake a in

now of customers ASI of of this will in enter excess forecasting million Australia. $X.X financial largest for million a orders in intake order 'XX backlog, QX order We of the our intake terms year. healthy with in was $XXX are FY With received. And we

accounted and pro excluding million visual, and from $X.X have received number million our our some the partner from have being UK QX, orders to received a of our both as just XX million highlight our during very received months in customers, of UK, XX% Amir, with the partner, Charma XXX orders rest QX And US we active the Our $X.X back $X.X one XX% fastest received from orders booked continues of XX% our million of orders touch. and from the of share orders $X parts and NAIA with of the the million ASI US, $X.X growing con our partner during Finland, growth of audio from from orders of and two US the in revenues past with international. from partners. XX% distribution Australia to further to Spain, we million unit highlight partners. from We we over in significant over trucks Ireland, orders partner, $X.X the we orders ET where UK, $X.X we the We where we of market our Roche recognized sales a DK received for done We in and our of has accounting in DNS to company both in taking that private network of Northern few active in of D $X.X in received panels, been key of position XXX the the came US flat grow orders Euro over and from million of and for received partner us world, interactive, over clever QX Denmark. million orders

overall increased if providers global X.X% According and source, that top become are in of to the in market to the two, Our we remain confident future soon. leader that market latest with report will from the, we the from market PD share China excluding share XX.X% IPDs X.X%. very

be gives X% to by market X.X US grown XXXX, slightly of market our X.X% for BD At worth that in XXXX. $X.X significant estimated to we billion from over share. room users, terms in billion of X.X size, given biggest is AMEA should next another where about Overall, our to energy share in has is billion substantial approximately XX the about over growing US noted growth smaller. US the the double quarter It to X.X% we years, growing plenty in $X.X according in that in billion X% wins across us be $X.X growth are source, Our terms Germany. if number growing XXXX this in $X.X five ranked future gives has it X.X% billion in billion to for organic seen our share XXXX, of the opportunity us the past the XXXX, had from an months great of market remains to globe in overall addressable, market of market for with growth in about market to this few year, nearly IFDS the market

in UX of series with have win sector. pro fantastic win of newly XX into IPDs and a provider, we vaccination offices, UK. power centers a Dutch their in, contract and German the London XX links, UX cm the public live four In to minimum putting released units both had growth Northern Camden XXX as our will units minimum a a whiteboard, us clever into years, test of deal was such and it some and $X.X We of least Barry software, fantastic wins UX our the and worth We of for of is including a a solutions petition solutions. authorities. our clever The in national health The from corporate in a enabled Holland, at includes pension the grammar to solution next schools, pro with our minimum differentiate In with COVID school. million to the instances, help touch want GD Ireland. pro the XXX over commitment our touch solution locations supply that

screens The Our with large solution, We from deal school college won differentiated pro our Belfast and this liked school fantastic really MI US. in casting the a competition. unplug NIAC our classrooms the won tele a partner with Seattle solution. for XXX us with Everett district near XXX metropolitan district for deal nearly

old the solution, Maryland their We really the evaluated at in had use liked County great also ease and XXX of classrooms again, The the our replacing another solution. win and screens. Harford teachers

Finally, offering looking centers over and products, are XXX comprised the to printers audio our partnership, centers Xd country of around we stem the Ripkin both that to IPDs light. we from stem box installed already cow with build stem super our in equipment expand have and are

million licenses in than million These QX, on $X.X more of software During software year Samsung total, I've and products. over an solve invoiced QX, revenue are have ongoing three future software When licenses connect for software. repeat they're we term we X,XXX and $X.X based will renewed business of create basis. MI

months, full And are year. expect our of million greater software the to the continuing we $X.X monetization suite. for During software nine first than revenues continuing we the

set score science stem forwards. stream margin app into our that utilizing addition that now reach Mimio based expectation foundation classroom. solutions Boxlight my We solution including the Our we our stem our of a and touch comprehensive moving or both family solutions, a to and be bot kits platform. have Xd devices. lab, my create robotics printers, IPDs sales disc mimeo includes is and high the extend that connect whiteboard front The our annuity Mimio coding and links row clever means solutions will portable

front solutions MimioConnect a and ed and such The multitude natural professional growth positioned choice software whiteboard, market lead to of colleges means tech addition the from and and octopus for leading that EOS. links, the as globe. have of development well also very are across to audio row Mimio studio many We from solutions schools, districts we in become

a This Michael classroom our with in solution terms QX our record earlier, the expanded with summary, deepens CLA does we of was profitability. MI part In during and to as order our Samsung. introduce partnership bundle outstanding mentioned student intake devices to As of the an our quarter, our solutions, camera. quarter revenues relationship And why classroom? include set in and our MI view Samsung Chromebook connect software including

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

guidance As at million. guidance least is XX for Michael our revenue a year current of QX $XXX million stated giving revenue earlier, full

ordering year, We the increase backlog. our a be of substantial expect to for north sales to our number million intake $XXX providing full

ability adjusted adjusted our rate base. to over continued in the will despite EBITDA pressures XX.X, increased costs. throughout to strong turn to improvement of without shipping margins Now and Foley. business Patrick cost X% in and improve EBITDA The percentage QX With call to now X.X% and XX.X% in percentage I and the the profitability is gross large the that. leverage then increase substantial to QX QX, year higher has from in due CFO, revenues due to the

Patrick Foley

further country what provide context you've mark. flight operations on on Michael to and like the few heard a everyone afternoon, add and expand box by already to good both And Mark. from for, Thanks region. I'd to a international revenue to

hardware QX largest being revenues margin gross and and The consistent the displays XX with which pretty FPD at represented about and with coming positions top XX% and of represented terms would've was mainly the related software our total total these our higher. XX EMEA These XX%, mix heard, or you've at remained UK is And are QX are customers, of two namely million rest sales whereas QX the represent IPDs accessories Americas were sales balance in million. about UK the $XX.X our customers. slightly the XX%. quarter which which solutions, approximately in US, markets, proportion were of the Australia of total were XX%, XX.X%. and margin sales for of the across our stem of The customer As in with X%, the the X%, number largest million margin revenues was the $X.X and total XX%. XX% XX%, thirds product which similar sales of $XX world balance The XX% QX. of covered and approximately total of Denmark, was XX%. The services of of this revenues total top a of in total panel QX largely interactive single Australia, flat been from XX by based customers about a million, was

and with along the manufacturing continued issues, and seen challenges However, including as unique these schedules four component gross higher due we shipping are points. have challenges, margins. we experienced options of where increase to are as costs increased XXXX, four reduced shipping times rates us. not up reduced goods, previously quarters, costs remain have margin we've receiving normal which noted. we supply And These previous delays of to reported internet result as are chain shortages, has In throughout seeing to percentage profit the anticipate production inventory to a our by will in some global global costs

third XXXX XX, interactive most prices for I'll and million month XXXX and $X.X and and the sector approximately for the three XX, the XXth, increasing September to well due quarter months formats. gross compared XXXX with three margin and gross September and XXXX September three for inch Sahara three months half trend demand profit XX.X% of solutions XXXX were XX, 'XX, of ended for for the to as million million September, months an managing XX.X%, sizes of three the a to planning XXXX, of to the XX XX XX, The in related XX our months review XXXX acquisition production XX.X% XX The gross points customers was reported our the increased six the the extending adjusted basis XXXX. these three ended results ended the XX, for months were all primarily compared the XXXX. terms months revenues September $X our resulting in compared net acquisition adjusted improvement we, XXX% profit September is for of in three for million XX, September ended panels sales to percent profit ended was was financial month the XX, as a QX, screen September However, September Accounting education effect which now three our follow represented $XX.X display for the results. purchase. ended ended margin inch and ended the compared XX% of as as to

effects margins by previous supply year, in been chain And customs adversely is freight. of XXXX. by anticipated quarters associated And to of impacted approximately continue challenges four remainder the points reported costs due gross XX caused As pandemic. increased to this percentage the this with for have COVID the

have quarter impact of on X% manufacturing this. the the result cost the Additional shortages, approximately pressure as component of in on which mitigate inversed had seen to of margin has a been an

to $XXX,XXX for million XX.X were XXXX. million The the ended adjustments resulted loss months XXXX adjusted increased the ended and in ended pricing the XX, as three operating primarily the a compared from for expense for expenses acquired XXXX months deducting XXXX million Total loss overheads XX, XXth, customers. months zero and shareholders XXXX. EBITDA September XXXX million additional million X.X September, to increase September three ended and months September compared the for the XX, of ended months per have loss expense XXXX to Other XXth, and net million months the X.X from XXXX for B three XXXX to EBITDA three expense to $X loss for We for was ended of EBITDA months Sahara net The per the million of upon months the September was of settlement, effect issuance X.X comprehensive three ended $X.X compared the three X.X reported ended in September respectively. million operations debt as million death and months million September XXXX loss a capital three compared based months diluted million $X.X was a and ended on adjustments the a ended anticipated to remainder XXXX re September three on a associated for with derivative of XXX% the an supply loss instruments company translation as effects a nine as basic for XXXX million and three for $XXX,XXX ended XXXX $X.X to to ended foreign the nine light adversely XX A September, interest shares in basic for X.X liabilities diluted total XXth, XXXX. three million XXXX September with certain effect purchase to COVID currency financial expense as the gains XX, for and XX, months share XX was September million XXXX months income $X.X six common primarily the XXth, net this compensation, September losses gross the XXXX certain $XX.X September the gross solution XX, XX, September was EPS The seen increased in three September by Series $XXX.X exchange and XXXX, XX, fewer been for revenues stockholders of was million XXXX demand through quarter a approximately the increase at borrowings. XXXX. million issued $XXX.X EBITDA by assets, The XXXX expense Sahara percentage for gross of the $X.X three compared additional had XXXX and results XXth, XXXX X.X cents preferred the September and recognized in cent box for of months due the decreased common in the ended the to our expense equivalence settlement XXXX associated and increase adjustments The cost shareholders million $XX.X months nine X the cash chain $XXX,XXX of ended XX, $X.X increased of the in to loss as nine XX.X months profit $X.X in profit XX, XX, margins obligations offset three months losses XXth, compared other months increased of was for XXth, outstanding XXXX XX, gross effects to recognized for in as The XX the as impacted stock this resulting for manufacturing. ended gains compared to measurement for ended to acquisition million XXXX accounting September nine have the margin outstanding. will million million three the months compared the of profit months ended for year, the working the million in the points compared losses XX.X% attributable for for and the ended to net rates due September include in XXth, pressures shares shares for the consolidation net's months to million effect September in inventory, loss. the nine of million net three months September dividends with challenges share connection caused ended pandemic. issued XXXX XX X.X September to in of of and in ended Reflecting XX.X% to debt margin XXXX. was nine acquisitions XXXX as total purchase. next compared Accounting to this upon income of XX.X% a the of And September in for associated September after an months acquisition respectively XX.X% and ended reported related XXXX September with preferred XX.X cumulative previous XX, the common September $X.X million and XX, the million reported from $XXX,XXX $XXX,XXX equity. continue adjusted for cash been and primarily as nine causes for September adjusted quarters XXXX, $XX is a margin due XX ended with months XX, four have million the ended

derivative XXXX, the of were to comprehensive million result $X.X of the increased for amendment this a losses to expenses months million with $X.X shortages of approximately for The of September million XX, nine mitigate the a common nine months mentioned for consolidation diluted XX, XXXX and million associated September month for EBITDA $X.X for XX, nine September months EPS other of loss respectively. of we'll loss million nine the and have months and million XXXX. of net the a expense pricing operating ended end the the the XX, XX, $XX.X $X.XX September $XX the and component outstanding. fact XXXX gains from ended September share The XX, September $X.X income working September XXXX. of increased at redemption loss XXXX and XX, in XXXX. and to million ended was was a expense As the on resulted a the signed net in XX, $XXX.X an million of and customers, compared million months million li compared due XXX,XXX settlement box purchase in debt additional of XX, September net share translation adjusted $X.XX XXXX the loss ended above million issued September basic, XX, accounting certain XX, $XX.X for after XX, the on $X.X reported reflecting call September connection million overheads compared instruments operations $X.X compensation, the as XXXX loss ended compared was months September open losses months to ended nine of and loss a nine as common ended nine ended million cash for shares $X.X nine XXXX recognized $XX.X September was acquired $X.X million million shareholders X XXXX currency assets, deemed to adjustments stock for XXXX the with a had for and total XX, contribution settlement date $X.X expense million was was EBITDA diluted with The to million XXXX ended death to And September was of measurement of primarily outstanding September ended million months the compared for obligations dividends foreign the Sahara preferred for company months equivalents, inventory, per The light XXXX to months to $XX.X and with from as certain include expense of the attributable EBITDA. increased in for preferred to nine for cents nine loss an adjustments in that $X.X with nine on September nine September the XX, EBITDA Brie XX, $X.X nine issued and reevaluation of net loss X.X% equity, nine recognized for million million in and The the $XX adjustments borrows, months September nine per loss re fair $X.X XXXX. XXXX respectively XXXX nine $XX.X September end for interest and shareholders the XX, as effect shares months debt, to up expense X.X ended million for total increase of adverse upon the for impact June the basic of $X.X compared million based associated, the months for increase in shares. that, common derivative acquisitions the fixed as the XXXX effects XXXX, and with in liabilities million cash to million in months ended an cumulative net XXXX of XX, deducting net expense was loss gains shareholders stockholders XXXX million the questions, And XXth, of value X.X exchanged Total the XXXX XXXX B Series $XXX,XXX loss $XX.X X.X series loss million year capital in of for other months losses


is line Please Partners. Brian, Brian from And [Operator is your Global question go the Alliance ahead. instructions] coming from live. first Kinstlinger

Brian Kinstlinger

front exclude row includes if the, if Sorry. from the an that two one, it does the months front great row? or quarter. Wanted easy to you ask expect fourth quarter

Michael Pope

that include now, where months can provided we two I of Yeah. guidance beat baseline again, but that's think additional yeah, the so row. row the way it would front would that, the we at The we Yeah, look front revenue. think, a include we

Brian Kinstlinger

it row if now the slowdown down it, growth. I'm, it US the And there's that right the quarter. quarter. way is the just, I'm curious shortage. Maybe of and is growth Because total about that with versus the full the you third could front you it I'm the break guess the suggests I fourth rest a into add in if world So thinking

So growth if maybe slowdown where of seeing can temporary through component breakdown the we maybe shortages. on based go and we're or timing

Michael Pope


So Brian it's kind of can I one. take pass. that

terms kind and rest a Sahara on for kind of total kind our of our world basis, in of the revenues So boxlike and us of of combined solutions.

of a rest kind a it was in us the revenue gives and based million, I So you Obviously a total And it $XX.X basis. year's at last Sahara the the was obviously on if combined the what kind and the XXX% growth So end I QR. in the for last on $X.X see of quarter as year sorry, in obviously of would in compare million QX that what, PROFOR it you're X.X say QX only US, haven't Sahara. we But to and the $XX if only obviously at did basis, the us Brian million the combined which basis. consolidated Sorry, $XX.X revenues. do had looked year? It from in right US in of a Sahara, of QX again, was a million quarter you of million world. done last

Brian Kinstlinger

so, And fourth a in no. slowdown? if quarter, is So the there

Michael Pope

No, So actually, it's think important. slowdown. Brian. I there's no actually seasonality It's

XX% of actually school the probably represents obviously key if and being of year appear those look So the the things, kind busy QX, QX revenues that at which quarters of schools the operates of on the districts combined about balance. total in you QX, and QX basis from globally on usually then kind period a the

the from terms that's, of really that where totals. So in comes

all did our year, can for million. see slowdown seasonality we comparison, we you not as of we $XX kind guidance, usual are calling QX a that year, look because markets of time if of Brian, see you that from would it's in at by So XX just last

slide Yes. comparative a had $XX that quarter your quarter. And that's quarter. Sahara had million that So the in both group plus of full box

true a that's comparable. So

year quarter for is fourth to we're fourth million. of acquisition. million So again in, this the $X.XX that XX I assume we're, minimum grade year. expecting this of the from Yeah in XX in a to go quarter million from last

Brian Kinstlinger

the you acquisition similar seasonality if gonna selling acquisition there that it take cause acquisition, at kind seasonality, in market, definitely there you can't be, some, as and straight so well. know, have look So, comes but, of the at Right? there's you same be line revenue a will will Well, be from you percentage.

Patrick Foley

margin a XQ Okay. second on one margin, the similar, Doesn't margin. little guidance the also time. look quarter is And EBITDA lower. then revenues put more are bit somewhat when The maybe like the just

of inventory sales additional obviously, manufacturing margin, carry are terms QX, have will through in talk, on the increases QX. seeing seen terms in obviously we're the of QX, stock We've fourth cause and which in to maybe some will of in quarter we quarter in costs, carry third for what which in pricing manufactured our So we ordered top pressures seeing on the

in will pressure to there is the So of alleviate customers that be on and possible on pass our that mitigate pressures prices where QX additional module. actually increasing some to on that that through

Brian Kinstlinger

clever the exclusive an on release touch. that about reseller recent of means. becoming lastly trucks Talk what press And Okay.

leader and or, point, of like made I think product touch they guess US is until their product did up line they to replace, to commitments The was revenue who lead generate and you selling they'll kind what your the being I before this what have or, then or new leading with clever in have

Michael Pope


question, Brian. great So,

TRX that you E had contracts know, because the of and arrangement with T previously reasons an TE exclusive for the with acquired So had exclusive clever bar, actually we Texas key T was Allstate that he that, one of touch. and

want a they was you to them. that key reason buy why So

Now, states, a as new you big relationship does line. have with trucks

we very, months. they growth that working that change time very with renegotiate clever XX arrangement overnight, contract It the expect, with we've but it in very And in are and doesn't exclusive to with very, a are that us next over took However, got closely significant contract long we trucks. interested touch. the

in XXX know, to tracks, got don't from of product under So part incremental continues your of you perspective, get Yeah. sell the line cuz I Well, they you'll to the about, tyranny had put tyranny because sales guys but it XXXX revenue. they're instead degree don't track incremental sales sell anything because and lose the guys. trucks have standpoint, new that's to

doing combined, with so, team you those So, now we know, and TNI we've you the team. were and got the sales sales TNI numbers trucks know,

We've it's coverage So our them partnership much the sales with US. a with got better larger across much team.

for significant opportunity So, there's to very you you know, us. a


your coming is Go Aarde Jack, Please. from ahead. Your Maxim live. next question line Group. Jack from is

Jack Aarde

guys grab pretty, first Hi pretty seen great. to guys. Okay, some that installed I, see time. I that results in I profits have gap from think it's the you good

questions. on general Some question represents us. US. your left opportunity what programs how untaxed I'll guys' what's to couple get you're the progress the grow in funds sales the, are at supply them start in to perspective remaining those working that least the districts that and and on a from sort for chain help effect, how, with on help allocated in with that for of the environment, to them update And we're funding in congrats the I a federal guess there in what

Michael Pope


three they of ESER US funds. is elementary So tremendous Jack, in just shy, federal relief, us have for made funding the as previous may scanning they've $XXX available some the those redundant in the that government be, than appreciate school billion federal the larger tranches of we're the there's for be those seeing calls, a internationally, you'll may of education substantially termed right? I funds, and question. both tranches. be opportunity there's from And the other the and ESER There, what for three and may, and in there's but secondary this emergency And, ESER and of course, amount US funding, countries. but remember

second of progressively being The spent. and first are tranche. those smallest bigger couple the then And third got was first the those tranches tranche

the you being applied a been lot Act spent And but you which hasn't tranch second of a by is money. for that Cares in accessed spent now, been of se spent is and the third, that's lot largest. lot that's remember Now, the the a tranche know, available. the still first of being far was That is is

in And tranche third, of was the about all billion know, $XXX so the the, money billion. $XXX that in short, third of and, keep and mind you of roughly

work trying to process, in guides funds. still We've funds. how to and it. and identify access access that on of districts spend a school is it the those largest from we've white the administrators as around them done of how So, with help lot part available and to that to And papers marketing we're created on,

dedicated and helps of our funds. director person We have a strategic to schools work who's to with access he Dr. grant Reinhart, and,

of funds. or for another pursuing actively XXX that And of will nearly qualify something those we're our so way that's in one and definitely most solutions billion

strategy And of so major is that a ours.

Jack Aarde

what Okay, you, general combat around, comments been response helpful. bit have from know, began the what I this, great. that obviously then from supply every That's issues you a by markets to chain in been when talk just If your you detail industry products impacted from, raising mention in, little has prices. there like you just end in the any global Can up is more you did being on your you virtually prices company of raising follow what customers? you just

Michael Pope

feel Yeah. I and can in. jump free then, say a and mark, couple then and, things to

as that's solution of mark, because price solution, of and ship. largest flat interactive So, panels. three several at we've increases price the or by those in are course you internationally we've Europe, we the increases have US, four expensive price then look in And our on price each throughout our both increases to been so solutions had as quite in increases believe the to know, US, wrong three had Europe, well or two if I'm we've I had

are a and happen and there on increases into costs go And those that flat of been increased interactive cost and, board hard but a of lot slimmer they've much so the some the given on shipping across talk lot hit displays solutions, our pretty also our and not at and, are pat offsetting the on margins there's really also, and Shipping's have that components And panels higher prices you've other the we just with, story. as profit another of that. panels the most with, the margin of shipping. cost gross in increases heard and we've track on pretty us well on, to, of increase we've about, We've of done up there his well points about talk on done of goods. to

four data, And gross another so future. to so points your to as or that in starts our safe the normalize margin profit

Mark Starkey

understand, of on generally we've Michael, What pushback. top little customers add would is I right? had that, So

we're the you is thing the contracts. know, customers term we sun where have other The we've do per hold price to agreed There's contract. where fixed had a been as

have prices, customers of increases with But and, our you think generally most been those mixed So those on. I it's know, us worked passed and price bag. it is, a have

Jack Aarde

software to maybe imagine sales. Okay. would would, an future in just the then maybe I of gross can appreciate know, that. margin be, mix tied And increasing somewhat upside you

you you in into your it's revenue you But share displays this strategically continue I million, nearly that in can of the did revenues. your $X.X longer right you, it million all how software, looking continue $X And revenue at going future? be mention, driven view interactive software I of and is bulk for and think to track are of XXXX, know, about software XXXX, think, about year qualitatively? your just kind panel long in a the So core that's the now model and term Samsung What other how on then, you're how tied beyond that, on just term is XXXX. and will drivers

Michael Pope

then also Yeah, a as strategy, to both is thoughts that's total question. Thanks. first our software a differentiate center. off couple solution and a good part major of our profit

in on successful have to of no up our or district panel sales because today. XX% to the corporate going to flat have having, most coming our, experience. know, with panels, software, differentiation, you of interact But customers without So the purchase, software our first school panels be sales, selling off you flat from the are

last our available, even towards far on part a it of lot we of that as talking our something to several SA been ago, focusing new That's of headway years couple that monetize whiteboard true on made quarters. in so we're our true about connect software platform. ways last, is as Historically, started platform. And that software on the the our our definitely focus MI That's we those true That's moving we're are app stores of making guidance. future of there's hasn't strategy. selling we've helps but But this us a monetizing and software hardware, links a strategies.

should something this term, like dramatically say, growth know, guidance we're be that. specific software as given for happy look then solution total software, than say but sales. sales, And I very And like, about sales be I certain. haven't what longer XX% we're as would with know, We will could total our broader selling you should you much That's that. because expecting higher of we'd and software the our be

hardware dollars in mind more of at dollars the hardware. keep if be are look of amount spent we're you on on a education, gonna spent focusing in that think classroom. the lot classroom, there's When Now, And you the students classroom, devices to in the in more want the both and software. we participate handheld dollar go cameras flat a in for to to other and, and know, panel interactive the devices and but lot than you software, hardware

XX% so sales. long something And good term our I think around around, a of total be would else

Jack Aarde

chain just back then And the XX% million one on people's great. given adjusted maybe always related also, as pandemic of from all EBITDA are of then the, this kind supply Okay, just minds. under certainty world revenue disruptions and or more the guidance of the environment, $XXX adjusted XXXX as above XX% of with terms margins, the well in me the the in EBITDA

confidence a guidance Just your out in sell products. revenue big to of what how you you more level have that like uptick that's lay that much, lot to a which, in terms is know,

of current state right what have the have the given of components and level for have that how inventory competence those lot you You the, a to so now? given everything's achievable do world out playing more those, are targets

Patrick Foley

we ever we've that's guidance that those account a into achieving sourcing we There's higher and have we're a in seen. those confident, is numbers. We're beat to but provided. the numbers mind, now seeing we very salute that's take around demand in row we've five very five, those quarters the feel say into baked we've I'd about the where there. the good that. struggles no providing numbers, Keep question testament about demand And potential

We have well. and numbers point, beat track we're at good as pretty gonna a this those record

Jack Aarde

guys, time I Well, hear. in queue. to Great Thanks. appreciate I'll the at hop back


Wainwright. question from is next Your Buck H.C. Scott coming at

Scott to We'll Thank go the at please you ask back come line, live, line question. Drew. to Scott. Your you're ahead

Management. your from is Please. coming question Martin Go is ahead. Martin, Roth line Capital Ferret live. from next Your

Martin Roth

off And an exposure Maybe The I management. was stock I and the This as time why. ago the down don't was my gratified about looked, following to you Thank have continuing on who Do you. thought it few disappointed immediately day. the first a months And anyone the friend. the sold release. day, to Good gentlemen. last X% is idea. have earnings performance? by we're you We know by any purchased stock

Michael Pope

that guidance, at you say into Well, you. in we position as per it's could had and both the, we're think good we point glad we well, a we're, mean, that came that far stock X could first only share. which off, only that potentially be, and as as to share, I guidance the we per positive, definitely I in EPS, analysts those the and our is that's thing investor, would took Our be I the insight C was that right? we an now was we meet to want we X to so thing you cent netting on you know, not as, movement appreciate us would And cent hit point and, right? positive numbers.

all happy anyone number, losing the gross I the adjusted general. we some throw this think that non on net cleaning position. guidance for of number lot We that think provided, and our analysts I gave in we but that income number. on bit on that way we our beat where up. business analogy. very say have news, that's $X on disconnect the to revenue. couple very, term P not also by And lot they were We so of as with guidance ended a just in we a I business. on EBITDA. applicable that and if million out on are when the beat to EBITDA chances little the questions company, they a we I a performance. you're million, long L less not versus earnings said, would We and We margins the We a there's and that like flows a which was are, EPS think because us beat best And cover is sold guided number through the per cash, like the now us we players And focus the on I'd there we focus share this $XX guided evaluating

You're familiar CDW. with absolutely. Yeah, Yes.

Martin Roth

but XX a much of software, are a different in to my that of CDW you years. distributor high more thought in of except what that with similar coordinated integrate is you to selling Well, the be and provide system you that twenties specialty, disagree Okay. go you as even with in a therefore or way you're do Do products. possible. people's other the that? a can into as is And And few see you're a as wholesaler that not you I in business going the a, next easily largely

Michael Pope


is So Martin, partners. reseller our CDW one just to of clarify, largest

resellers the We're than So manufacturer. CW, you how these or different US. the solutions some and they talked or, different our quite attracts know, we sell earlier about the we're we are of because are larger in

MI well as we brand. our as brand, touch those clever US the as our through as in well under the or sell partners And solutions manufacture channel we So internationally. reseller globally

should reseller partners. own much time we're And valued going so to higher technology, than be we we prove these own differently the because able very We margins to over various be IP.

So definitely should evaluated be differently.

Martin Roth

products? What come percentage of self-manufacture your sales from

Michael Pope

Yeah, XX% plus or own our our XX% plus solutions. branded from of come sales

Martin Roth

as the an go say far can margin achievable next gross is you your as in the question let's products high So five proprietary years. how on

Michael Pope


our now division challenges would we XX% some XX% in less or if solution a lot improve about if a shipping, are plus profit selling some and margin services And and the the XX% by as and we, margin little to mix interactive total we're our challenges out, the, like we that gross about interactive over margin a plus company. right lot talked typically various largely is where XX% XX% plus We've which of product margin those lot at with expect of a flat accessories, gross our is, other plus. supply chain. we panels our high that's talked operating XX% the that's hampered be In growth panels. solutions stem profit time bit of past in those flat of of solutions selling plus So a are being Yes. to our software, we because took which

higher adjusted, margin So foreseeable trend to closer should XX% to gross the or XX. years profit up we point, from in something come, even something than to a XX

product to over we guiding believe higher our time margin on periods because that, profit but improve So, we're solutions. gross with will not but, again mix our, time

And I direction. as next You're gonna you'll you'll think soon to in see right that. start to see it see year movement the start as

Martin Roth

Thank Okay. you.

I margins think addition, our on not it's and in are going Michael, corporate which the in of which terms with come larger that higher the sector kind I greater just that to part going formats, just obviously panel much growing come key forward, margin, a, to panels. on interactive we sell the be FLA but just also educational we in now, our inter things business also inter that to that's add importantly improve slack sector just interactive always shift is displays a a, into margins of a the on ordinarily just of a, is coming, pick the with also other up obviously screen flat

or your going where price carried to increases have like had you adds them that are price Am impression of mix. mix were still be I you gross situation margins price that talking the said, mitigating behind what a the also enough that So be the of lines the cost to you'd not in increases offset. to with I'm to this correct? absorb. with increases increases about as the to was the you've seen, get reading margin of well. because product that I the And against kind between that

Michael Pope

For, current the that for Yeah. current year? the

freighting of So point. all to we do expect actually global normalize kind a as with businesses at the

margin. of of mentioned and So of globally. at increased of terms of significant kind you freighting the kind that about incremental impact in straight costs an moment, that's, is and included I in had as obviously And products know, ourselves cost X% everyone kind has shipping seeing

that when back So through normalize we begin this effects to should of when of know, the get end we, pandemic. you the

kind XXXX, So, that also seeing you naturally start know, should we improve. of within XX, XX,


Martin Roth

improvement that say? gap fair the in see assuming more in remain we margin. an show to So have that the that quarter the will fourth quarter, Is third increases you one gross

Michael Pope

earlier would QX know, was of currently would one kind of revenues. asking pretty I a I question, of think it an similar you slightly would a bearing. there think question came we versus static. cause And be be slightly under comparison are costs revenues guidance that have yeah, QX, QX these But increased are the that reasons kind the of for that are which

Some them are. of

Martin Roth

the a that United or I considering on world. so sales our another year XX States the people Let sales me how it and rep said question overseas, between past have ask you've believe enough which the added XX is, was subject, in much to product you cover

Michael Pope

think no, XX to acquired acquiring the I related business XX. the we're No, that

we we includes So force the across which Yeah, sales probably that in US XX so operations over a internationally. and we front people which XX have. operations of and have, over row significant EMEA. have have has the the employees XX we No, staff, current XX across already some the are their located sales look,

a significant from the sales don't But row XX coming sales, having is in you know got get confused but Obviously us extra we've fantastic. force. So, front with only XX

Martin Roth

get that. Okay. is from you. Thank past your are I of ones the of got integration still duplication? integration benefits the elimination of and and to the acquisitions other One the that pending there regarding question year

Michael Pope

as that overall business. right savings, but is from will far future some as think I small focus so maybe there savings, of the profitability growing us revenue be of Yeah, and amount capture major

more drive business, savings more focus will think cost the I bottom and growth of combined minimum line. So which our on again, to


from is Your Group is your Ryan [ph] [ph]. XXXX line live. Exchange coming Private next from Ryan, question

ahead. go may You

Unidentified Analyst

know this cast I but earnings don't related just perceive margins currency you guys position charges terms Hi. noticed I X I earnings give like gross to next the some settlement the million, if cat might charges is, the there's projections, idea see purchase and Can giving over is some of There's recent forward. your something. you and the some what XXXX, company? as your but where be also on improving, going no disclosed, of are or me you gross if burn your legal and

Michael Pope

you about about front how say question pat, room. the So, first question? take the I'll the second

Patrick Foley

to repeat first thing So, just because two obviously the parts. sorry. its Could you listening

So sorry please say again.

Unidentified Analyst

greedy. as was sorry. I'm Well million. the a questions and of you of guidance kind based a I got Do and the one of revenues the on the purchase front have of forecast improvements margin $XXX earnings to row

Michael Pope

Yeah, are Earnings per so we an so obviously we, forecasting share? improved yeah, position.

to cost expecting growth. saving pure a not are its said Michael as So a kind exercise, do of

predictable, overhead improve you covering, the group. with know, profitability that our which increased will as the margin So comes then a unknown overall

year calling, So EBITDA the results without know, looking going heard our year. kind we number of total this you've we positions, giving of kind as are this you forward calling adjusted of for kind into

next grow year the loss. would net to that's a significantly. forecasted result a beyond XXXX income still difference net going net to have thereafter. year income income going for the in show we're So XXXX positions, And will and that be

course well. business, excellent. excellent. which and that change know, growth of front the earlier, you've kind through gonna So it's which basis the quarter is kind XX, but which margin seasonality, a a, you year. a a high fundamental what really on on continue Yes, we've got incremental And of the is seen accretive going been as year be row will you we've It's explained throughout really business,

So purely increased the total that is results. for

a So to that throughout performance we number good or is that optimistic? should share X the see guys improvements say you cent 'XX, hit can you is, would five, is too

Unidentified Analyst

kind call, I guidance don't to yeah, like, give just much I XX% want EBITDA. but of information like the know Yeah. on too

Patrick Foley


think is on EBIDA figure just on, guide, to business important most is we which specific figure Our is our the bottom the figure, the in guidance line. evaluating the

that meaning we million with. we XXX that And we've think in to that's yeah, XX% so, greater than EBITDA say and number, can guided beat And or XX Yeah. we for next comfortable year, million adjusted revenue we're number.

of brought Just, Ryan didn't announced that not did. intentional seller row couple We just that a disclose a some comments think lot you the We transaction on want because we provide did was when information. it's, and I front up. details that good us initially to because the that of more

the go was the the of when However, did said million you if E then assets the the that. at of I is be $XX And roughly provided can if the sharing the assets. million XX at there's about information the, plus When at include we I, my today. just that roughly we're gonna a in more look portion we company should price, purchase way you go and And script filings, think some you reiterate, S closing. we for being look it agreement net total purchase paying think for, for net

you And two those purchase so price. XX million, that's numbers add that together, approximately if the it's

of our balance a what sheet. XX million, don't $XX in showed million balance Now sheet for that you cash. have commented We

way because the anything. transaction So intentionally like we're to on dilutive the something that given to the today, looking We we're we where close debt working feel now. raise undervalued. That's that we're equity to a to That's acquisition. are gonna do looking we to is is want fund price we're doing we don't be stock

terms front cash that raise of and the row, in of covered very And the of the service just by be expect off. and the debt think form the that we row to looking front comfortably spits debt by we're money will so for debt

put a, good think we us position. is so flow And gonna a financially in cash in

Unidentified Analyst

so? forward, bought And or then do months had that. much Are they revenues I or do to -- with type over months, where XX and it amount of appreciate next last good? I'm for it they the there company have cash that deal XX year this front, going for wondering, growth pretty but I you have next guy, which I one based that, other company is another I M&A the structure, a any thought months question. had acquisitions? up also a a on was And or saw candidates potentially on have eyes of they, a they XX you for certain pretty

Patrick Foley

as specific approaches. anything Like transactions, previous those constant, some speak. of Yeah, earn we've look have done we we can this our we at, so opportunities that time, mentioned, also opportunities evaluating we're and we're as we structure We you but looking that share don't oftentimes with out we'll are at at at transactions.

case. we'll something So that's that definitely evaluate on case by


[Operator from Lan have instructions] is live. line ahead. your Please. Kyle Kyle, And question Go we [ph]. it

Unidentified Analyst

Hey accredited two any any curriculums or got question instruments contracts to accreditations quarter guys. part are Have accredited trying with curriculum real any and the get XX. seen box we revenue right K quick other state Texas from through from light Awesome now? we

Michael Pope

working Kyle of team, Yeah, and that's of sorts all part education development our they're EOS initiatives opportunities. professional so that on we the have within

to You that Google and, able we've we've, been names. another know, some about with talked we tackle opportunities big successfully and

especially a we I training I as providing the and that yeah, part that partnerships about is the development strategy, looking we're if and of we're various talk provide be say, big accreditations of there's solutions required, adoption environment. training professional able a maybe within product that, little, grow we a we little our not would displays when that would on say those that education to we group. PD software. the interactive for that, in gonna to bit sell so not the proper development that's and different can And more accessories constantly the and understand little be just And opportunities it professional bit, And

in orders. opportunity where development, lead of on sales software, sell to adoption's every solutions to in we want but is sell that the in gonna we and being lead at customers, various in adoption look and successful every that and successful going sure follow the environments, we make to also can that so course, training to, And also hardware happy results professional we

big of certifications, but a et so strategy, various, we're And we know, receive opportunities you where that's at yeah, our sorts short, can in part looking all of partnership cetera.


are for I there to at floor Pope pass closing remarks. time. would the back questions like And further queue no in Michael this to

Michael Pope

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


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

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