Inseego Corp. (NASDAQ:INSG) Q3 2021 Earnings Conference Call November 3, 2021 5:00 PM ET Company Participants Dan Mondor – Chairman and Chief Executive Officer Ashish Sharma – President Bob Barbieri – Chief Financial Officer Conference Call Participants Lance Vitanza – Cowen & Co. Scott Searle – Roth Capital Operator Hello, and welcome to Inseego Corp's Third Quarter 2021 Financial Results Conference Call. Please note, today's event is being recorded. [Operator Instructions] On the call today are Dan Mondor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-38358 INSEEGO CORP. (Exact name of registrant as specified in its charter) Delaware 81-3377646 (State or Other Jurisdiction of Incorporatio ...

Inseego Corporation (NASDAQ:INSG) Q2 2021 Earnings Conference Call August 4, 2021 5:00 PM ET Corporate Participants Dan Mondor - Chairman and Chief Executive Officer Ashish Sharma - President Bob Barbieri - Interim Chief Financial Officer ConferenceCall Participants John Marchetti - Stifel Lance Vitanza - Cowen and Company Daniel Park - Canaccord Genuity Aditya Dagaonkar - Northland Capital Operator Hello and welcome to Inseego Corp.'s Second Quarter 2021 Financial Results Conference Call. Please note, toda ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) In Q1 2021, Inseego Corp. reported slightly increased net revenues, a narrowed net loss, and strengthened cash, with assets held for sale [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$251.4 million** by March 31, 2021, driven by assets held for sale, while stockholders' deficit significantly improved Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 (Unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $54,030 | $40,015 | | Assets held for sale | $41,696 | $— | | Total current assets | $162,416 | $114,108 | | Total assets | $251,389 | $227,394 | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $84,712 | $75,712 | | 2025 Notes, net | $158,620 | $165,147 | | Total liabilities | $252,852 | $255,293 | | Total stockholders' deficit | ($1,463) | ($27,899) | - Assets and liabilities held for sale, valued at **$41.7 million** and **$10.1 million** respectively, relate to the expected sale of the Ctrack South Africa operations[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2021 net revenues increased slightly, gross profit improved, but operating loss widened due to higher R&D and S&M expenses Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Total net revenues | $57,597 | $56,840 | | Gross profit | $18,473 | $17,227 | | Operating loss | ($16,196) | ($7,740) | | Net loss attributable to Inseego Corp. | ($17,173) | ($18,198) | | Net loss per common share (Basic and diluted) | ($0.18) | ($0.20) | Revenue by Segment (in thousands) | Segment | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | IoT & Mobile Solutions | $42,959 | $42,415 | | Enterprise SaaS Solutions | $14,638 | $14,425 | - Operating expenses increased significantly year-over-year, with Research and development up **77%** to **$14.6 million** and Sales and marketing up **26%** to **$11.0 million**[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2021 saw positive operating cash flow, significant cash used in investing, and substantial cash provided by financing activities Summary of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $973 | $328 | | Net cash used in investing activities | ($9,396) | ($4,857) | | Net cash provided by financing activities | $29,547 | $26,314 | | **Net increase in cash** | **$19,535** | **$18,467** | - Financing activities in Q1 2021 were primarily driven by **$29.4 million** in net proceeds from a public offering, contrasting with Q1 2020 financing mainly from a **$25.0 million** issuance of Series E preferred stock[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail COVID-19 and semiconductor risks, the pending Ctrack South Africa sale, debt structure, increased share-based compensation, and high customer revenue concentration - The company is exposed to risks from the COVID-19 pandemic and a global semiconductor supply shortage, which could impact customers and material supply[20](index=20&type=chunk)[21](index=21&type=chunk) - On February 24, 2021, the company agreed to sell its Ctrack South Africa operations for approximately **$35.4 million** (**528.9 million ZAR**), with **$41.7 million** in assets and **$10.1 million** in liabilities related to this business classified as held for sale as of March 31, 2021[52](index=52&type=chunk)[55](index=55&type=chunk) - As of March 31, 2021, the company's outstanding debt primarily consisted of **$161.9 million** in principal amount of **3.25%** convertible senior notes due 2025[25](index=25&type=chunk) - Share-based compensation expense increased to **$9.1 million** in Q1 2021, up from **$1.6 million** in Q1 2020, largely due to **$7.0 million** in immediately vested RSUs granted as fiscal 2020 annual bonuses[84](index=84&type=chunk) - In Q1 2021, two customers accounted for **60.8%** of net revenues, and **51.2%** of net accounts receivable[96](index=96&type=chunk)[98](index=98&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 revenue growth driven by 5G products, improved gross margin, increased operating expenses, and strengthened liquidity [Business Overview and Strategy](index=24&type=section&id=Business%20Overview%20and%20Strategy) Inseego focuses on 4G/5G wireless, IIoT, and cloud solutions, strategically divesting Ctrack operations to streamline its core business - The company designs and develops fixed and mobile wireless solutions (4G and 5G NR), industrial IoT (IIoT), and cloud solutions for a global customer base[118](index=118&type=chunk) - A definitive agreement was signed on February 24, 2021, to sell the Ctrack South Africa operations in an all-cash transaction for **528.9 million ZAR** (approx. **$35.4 million USD**), with the sale expected to close in the second quarter of fiscal 2021[120](index=120&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q1 2021 net revenues increased slightly, gross margin improved, while operating expenses rose significantly due to 5G development and bonus timing Net Revenues by Product Category (in thousands) | Product Category | Q1 2021 | Q1 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | IoT & Mobile Solutions | $42,959 | $42,415 | $544 | 1.3% | | Enterprise SaaS Solutions | $14,638 | $14,425 | $213 | 1.5% | | **Total** | **$57,597** | **$56,840** | **$757** | **1.3%** | - Gross margin increased to **32.1%** in Q1 2021 from **30.3%** in Q1 2020, primarily due to a favorable mix of Inseego Subscribe revenue[142](index=142&type=chunk) - Research and development expenses increased to **$14.6 million** (**25.3%** of net revenues) from **$8.2 million** (**14.5%** of net revenues) YoY, due to 5G product program spending and the timing of bonus grants[143](index=143&type=chunk) - Sales, marketing, and general & administrative expenses also increased year-over-year, largely due to the timing of bonus grant payouts to employees[144](index=144&type=chunk)[145](index=145&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity was strengthened by an ATM offering, with management confident in sufficient cash for the next twelve months - The company ended Q1 2021 with **$59.6 million** in cash and cash equivalents, including **$5.5 million** classified as held-for-sale[152](index=152&type=chunk) - In January 2021, the company sold **1.5 million** shares of common stock through an ATM offering, raising net proceeds of **$29.4 million**[157](index=157&type=chunk) - Management believes that cash and cash equivalents, along with anticipated cash flows from operations, will be sufficient to meet cash flow needs for the next twelve months[158](index=158&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is foreign currency exchange rate fluctuations, expected to decrease after the Ctrack South Africa divestiture - The company's primary market risk is foreign currency exchange risk, with sales in foreign currencies accounting for approximately **25.2%** of total revenue in Q1 2021[179](index=179&type=chunk) - A hypothetical **10%** change in foreign currency exchange rates would have impacted revenue by approximately **$1.5 million** for the quarter ended March 31, 2021[179](index=179&type=chunk) - Foreign exchange risk is expected to decrease after the divestiture of the Ctrack South Africa operations is completed[179](index=179&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls in Q1 2021 - Management, including the CEO and principal financial officer, concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[181](index=181&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[182](index=182&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not expect a material adverse effect on its financials - The company is party to various legal proceedings in the ordinary course of business but does not expect them to have a material adverse effect on its financial condition or results[184](index=184&type=chunk)[185](index=185&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) A key risk factor is the global semiconductor supply shortage, potentially impacting costs, component supply, and production timelines - A key risk factor is the global semiconductor supply shortage, which could increase costs and disrupt the supply of components for the company's 5G and 4G products[187](index=187&type=chunk) - If the company cannot mitigate the impact of the semiconductor shortage, supply chain disruptions may have a material adverse impact on its financial condition, results of operations, and cash flows[189](index=189&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the period - None[190](index=190&type=chunk) [Item 3. Defaults Upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the period - None[191](index=191&type=chunk) [Item 4. Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[192](index=192&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No other information is reported for the period - None[193](index=193&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed, including agreements for the Ctrack divestiture and ATM offering - Key exhibits filed include the Share Purchase Agreement for the Ctrack divestiture, various service and license agreements related to the sale, and the Equity Distribution Agreement with Canaccord Genuity LLC[194](index=194&type=chunk)

Financial Data and Key Metrics Changes - The company reported a Q1 revenue of $57.6 million, up approximately 1.5% year-over-year, with a significant increase in combined 5G and software as a service revenue by 120% compared to the previous year [6][33] - Gross margins improved to over 35%, up approximately 400 basis points year-over-year, reflecting a higher mix of 5G and software revenue [6][39] - Cash at the end of Q1 was nearly $60 million, an increase of almost $20 million from Q4 2020, driven by net proceeds from an ATM offering and solid cash collection [36] Business Line Data and Key Metrics Changes - IoT and mobile solutions revenue was $43 million, up 1.3% year-over-year but down 40% from Q4 2020 [34] - Enterprise SaaS revenue for Q1 was $14.6 million, up 4.8% quarter-over-quarter and relatively flat year-over-year [35] - The SaaS business represented 24% of total revenue in Q1, with a quarter-over-quarter growth of 11.5% and a year-over-year growth of 175.7% [14][28] Market Data and Key Metrics Changes - The company is making solid progress in international markets with initial 5G customer deployments, although establishing business in new regions is taking longer [9] - T-Mobile has become the largest 5G customer, with the launch of the 5G Wi-Fi hotspot contributing significantly to revenue [8][49] - The company expects 5G sales to exceed 4G sales in the second half of the year [82] Company Strategy and Development Direction - The company is focused on becoming a pure play 5G company, divesting non-target businesses like Ctrack in South Africa to concentrate on 5G opportunities [15][16] - The 5G fixed wireless access products are seen as a major growth driver, with significant traction in both consumer and enterprise markets [11][12] - The company aims to leverage its software solutions to enhance customer engagement and recurring revenue streams [13][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and growth potential, citing strong demand for 5G products and software solutions [6][48] - The global semiconductor shortage has not yet impacted the business, with proactive measures taken to secure supply [17][64] - The second half of 2021 is expected to be stronger than the first half, driven by 5G sales growth and new carrier deployments [43][72] Other Important Information - The company has reduced its headcount by over 540 people, leading to an increase in revenue per employee to over $600,000 on a pro forma basis [16] - The company is experiencing a transformation towards more software subscriptions, with a significant increase in recurring software revenue [28] Q&A Session Summary Question: How do we think about the enterprise opportunity contributing to second half growth? - Management indicated that the enterprise 5G portfolio is beginning to contribute and expects a ramp in the second half of the year [51][53] Question: Is there a better margin profile with enterprise products compared to mobile hotspots? - Management confirmed that enterprise products generally have a higher gross margin profile, expected to be in the mid-40s [54] Question: How should we think about the cadence for the IoT and mobile solutions businesses? - Management noted that 4G demand levels are above pre-COVID levels and expects a stronger second half driven by newer generation products [60][61] Question: What is the outlook for gross margin trends given component constraints? - Management stated that while they have secured component supply, they expect to see gross margins improve steadily throughout the year [62][64] Question: What is the pipeline for adding new carrier customers for 5G? - Management expressed optimism about fixed wireless opportunities and ongoing conversations with carriers, expecting significant growth in the second half [66][67] Question: How much did international revenue contribute in terms of percentage? - Management did not break out international revenue as a percentage but confirmed it is growing [81] Question: When might 5G sales exceed 4G sales? - Management expects 5G sales to exceed 4G sales in the back half of the year [82] Question: Did you see any pickup related to Franklin Wireless recall? - Management clarified that their products do not overlap with lower-end products and thus have not been affected [85]

Financial Data and Key Metrics Changes - In Q4 2020, net revenue was $86.1 million, down 4.6% sequentially but up 64.5% year-over-year [39] - Gross margins for the IoT and Mobile Business were 25.6%, up approximately 160 basis points sequentially and up 880 basis points year-over-year [43] - Total company gross margins for Q4 were 31.6%, up approximately 180 basis points sequentially [45] - Non-GAAP net loss for Q4 was negative $6.9 million, or a loss of $0.07 per share [48] Business Line Data and Key Metrics Changes - IoT and Mobile Solutions revenue was $72.1 million, down 6.8% from Q3, with stable demand for legacy 4G products [39] - Inseego Manage software subscriptions grew 18% quarter-over-quarter and 231% year-over-year, reaching over 3.5 million subscriptions [40] - Enterprise SaaS solutions revenue was $14 million, up $8.3 million from the prior quarter [40] Market Data and Key Metrics Changes - Approximately 12% of total revenue came from 5G products in 2020, with significant wins in North America, EMEA, and Asia Pacific [5][39] - The South African Rand showed positive trends, with the exchange rate improving from 16.8 to 14.6 during the quarter [41] Company Strategy and Development Direction - The company aims to expand its product footprint with multiple 5G product slots and launch a comprehensive 5G enterprise portfolio [11] - Focus on geographic expansion and building a global fixed wireless access business [25] - The strategy includes enhancing the software platform, Inseego Manage, to drive recurring revenue [36][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory of 5G revenue, expecting the second half of 2021 to be stronger than the first half [52] - The company is optimistic about becoming the global 5G technology partner of choice for carriers and enterprises, with a combined addressable market exceeding $50 billion [55] Other Important Information - The sale of Ctrack South Africa is expected to close in Q2 2021, allowing the company to focus on higher growth regions [50] - The company has not seen an impact from component shortages but is preparing for potential longer lead times from suppliers [87] Q&A Session Summary Question: Clarification on the 12% 5G revenue - The 12% figure refers to the entire year, not just Q4 [59] Question: Expectations for enterprise contribution in 2021 - The enterprise market is now a primary focus, with expectations for significant growth due to new 5G products and channel partner recruitment [71] Question: Impact of Inseego Manage subscriptions on revenue and margins - The subscription business is expected to drive strong double-digit growth and is highly accretive to margins [106] Question: Run rate of the Ctrack South Africa business - Ctrack South Africa accounted for roughly half of the Ctrack line business [84] Question: Pricing dynamics in the Ctrack business outside South Africa - The remaining Ctrack businesses in other regions are expected to have a higher average revenue per user compared to South Africa [96]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38358 INSEEGO CORP. None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-38358 INSEEGO CORP. (Exact name of registrant as specified in its charter) Delaware 81-3377646 (State or Other Jurisdiction of Incorpo ...

Inseego Corp. (NASDAQ:INSG) Q3 2020 Earnings Conference Call November 5, 2020 5:00 PM ET Company Participants Dan Mondor - Chairman and Chief Executive Officer Craig Foster - Executive Vice President and Chief Financial Officer Ashish Sharma - President of IoT and Mobile Solutions Conference Call Participants Jaeson Schmidt - Lake Street Capital Markets, LLC Lance Vitanza - Cowen and Company, LLC Scott Fessler - Stifel, Nicolaus & Company, Inc. Scott Searle - ROTH Capital Partners, LLC Operator Good afterno ...