Financial Data and Key Metrics Changes - The company's first quarter revenue was $72 million, a decrease of $4 million year over year, with adjusted EBITDA of $14.5 million, showing a slight decline [5][22] - Adjusted EBITDA margin improved by 60 basis points to 20%, and cash flow from operations increased to $2.9 million, up $1 million from the same period last year [6][26] - Free cash flow for the first quarter was $600,000, marking the second consecutive quarter of positive free cash flow [6][27] - The net loss for the first quarter was $14.9 million, an improvement from $17.6 million in the prior year [26] Business Line Data and Key Metrics Changes - IoT Connectivity revenue decreased approximately 7% year over year to $53.9 million, representing 75% of total revenue [22] - IoT Solutions revenue increased approximately 1% year over year to $18.2 million, accounting for 25% of total revenue [22] - Non-GAAP IoT Connectivity margin decreased by 200 basis points to 58.8%, while IoT Solutions margin increased by 370 basis points to 39.9% [23] Market Data and Key Metrics Changes - Total connections at the end of the first quarter reached 19.8 million, an increase of 1.5 million year over year [23] - Average revenue per user (ARPU) decreased to $0.91 from CAD 1.05 in Q1 2024, attributed to a mix of lower ARPU use cases [23][46] Company Strategy and Development Direction - The company aims to be a trusted global leader in IoT connectivity solutions, focusing on customer intimacy, product innovation, profitable growth, operational excellence, and building a winning culture [14][20] - The strategic roadmap includes growing the existing customer base, prioritizing new business in key verticals, and leveraging AI tools for digital marketing growth [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the financial results in Q2, driven by strong connectivity revenue and no impact from tariff policies thus far [6][29] - The company maintains its guidance for 2025, expecting revenue between $288 million and $298 million, adjusted EBITDA between $62 million and $67 million, and free cash flow between $10 million and $14 million [29][30] Other Important Information - The company has shifted to using estimated annual recurring revenue (eARR) to better illustrate its recurring revenue business model [8][9] - The total connectivity pipeline includes nearly $52 million in eARR from new opportunities and nearly $30 million from existing customers [10] Q&A Session Summary Question: Can you provide historical numbers for eARR and insights on current sales cycles? - Management indicated that historical comparisons for eARR are not available but will follow up on this. Sales cycles have not elongated and may have even compressed due to tariff uncertainties [34][36][38] Question: What is the normalized OpEx number going forward? - The normalized operating expenses are expected to be around $25 million, excluding integration costs [40][42] Question: Will ARPU continue to be pressured by new business? - ARPU is expected to remain around $0.91, but could decrease if more lower ARPU use cases are added. The previous year had a spike in usage that inflated ARPU [44][46] Question: What is the demand environment in healthcare? - The healthcare sector is experiencing growth, with connected health being a significant area of focus for the company [59][61] Question: How did the Winnebago deal come about? - The Winnebago deal was competitive, with a sales cycle of around nine months, and includes a minimum revenue commitment [56][58][66] Question: What is the balance of demand from new versus existing customers? - Approximately 70-75% of demand is expected to come from new logos, with the remainder from existing customers expanding their deployments [67][70]

Financial Data and Key Metrics Changes - The company reported a total revenue of CAD286 million for 2024, an increase of CAD9.5 million or 3% year over year [21] - Adjusted EBITDA for the year was CAD53.1 million, a decrease of CAD2.5 million compared to the prior year [29] - Free cash flow improved significantly to CAD1.6 million in Q4 2024, compared to a negative CAD15.5 million in the prior year [31] - The net loss for Q4 2024 was CAD25.4 million, an improvement from CAD33.6 million in the prior year [27] Business Line Data and Key Metrics Changes - IoT connectivity revenue for Q4 2024 was CAD56.5 million, up 2% year over year, representing 77% of total revenue [20] - IoT Solutions revenue declined 2% year over year to CAD16.8 million, accounting for 23% of fourth quarter revenue [20] - Non-GAAP IoT connectivity margin increased by 300 basis points year over year to 59.3% [21] - Non-GAAP IoT Solutions margin improved by 1,500 basis points year over year to 48.1% [21] Market Data and Key Metrics Changes - Total connections at the end of Q4 2024 were 19.7 million, an increase of 1.2 million year over year [6] - Average revenue per user (ARPU) for Q4 was $0.97, down from $0.99 in Q4 2023 [24] - The company closed $29 million in total contract value (TCV) in Q4 2024, with 68% related to IoT connectivity [10] Company Strategy and Development Direction - The company is focused on operational excellence and has launched several AI projects to drive efficiency and support profitable growth [7] - The strategic focus is on profitable growth and recurring connectivity revenue, which increased by CAD24.5 million or 12% year over year [6] - The company plans to shift from TCV to estimated annual recurring revenue (EARR) to better reflect its recurring revenue business model [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting revenue growth driven by IoT connections and improvements in adjusted EBITDA and free cash flow [34] - The company is cautious about potential impacts from evolving tariff policies but believes its recurring revenue model provides insulation against external pressures [34] - The outlook for 2025 includes revenue guidance of CAD288 million to CAD298 million, reflecting a 2% year-over-year growth [35] Other Important Information - The company has seen significant activity in its IoT connectivity pipeline, particularly in connected health and logistics [14] - The IoT market is expected to grow rapidly, with the number of connected devices projected to surpass 96 billion by 2030 [16] - eSIM adoption is accelerating, with the market expected to grow from 368 million units in 2024 to 1.6 billion by 2030 [17] Q&A Session Summary Question: Drivers of connections and ARPU changes - Management noted that the increase in connections was primarily from low ARPU cases, which contributed to the decline in ARPU [40][41] Question: Market development and demand - Management indicated that while low ARPU use cases contributed to growth, there are also opportunities in higher-margin areas like connected health and retail [43] Question: Revenue guidance and pricing dynamics - Management explained that the conservative revenue guidance reflects a focus on profitable growth and the exit from unprofitable contracts [46] Question: Delay in 10-K filing - Management clarified that the delay was due to specific audit items and expects to be on time for future filings [53] Question: Balance sheet restructuring - Management is open to exploring options for balance sheet improvement but is focused on operational performance [56] Question: Guidance specifics for 2025 - Management indicated that IoT Solutions revenue is expected to remain flat, with a focus on improving gross margins [64] Question: AI and eSIM integration - Management highlighted ongoing discussions with customers about leveraging AI for better decision-making and the growing importance of eSIM technology [79]

Financial Data and Key Metrics Changes - The company reported total revenue for Q4 2024 of CAD 73.3 million, an increase of CAD 0.8 million or 1% year over year [20] - Adjusted EBITDA for Q4 was CAD 14 million, an increase of CAD 0.2 million or approximately 1.1% compared to the prior year [27] - Free cash flow for Q4 was positive CAD 1.6 million, a significant improvement from negative CAD 15.5 million in the prior year [30] - For the full year 2024, total revenue increased CAD 9.5 million or 3% to CAD 286.1 million [21] - The net loss for Q4 was CAD 25.4 million, an improvement from CAD 33.6 million in the prior year [26] Business Line Data and Key Metrics Changes - IoT connectivity revenue for Q4 was CAD 56.5 million, up 2% year over year, representing 77% of total revenue [20] - IoT Solutions revenue declined 2% year over year to CAD 16.8 million, accounting for 23% of total revenue [20] - For the full year, IoT connectivity revenue increased 12% to CAD 226.9 million, representing 79% of total revenue [21] - Non-GAAP IoT connectivity margin was up 300 basis points year over year to 59.3% [21] - Non-GAAP IoT Solutions margin increased 1,500 basis points year over year to 48.1% [21] Market Data and Key Metrics Changes - Total connections at the end of Q4 were 19.7 million, an increase of 1.2 million year over year [6] - Average revenue per user (ARPU) for Q4 was $0.97, down from $0.99 in Q4 2023 [23] - The company expects the IoT market to grow rapidly, with connected devices projected to surpass 96 billion by 2030, growing at a CAGR of over 20% [15] Company Strategy and Development Direction - The company is focused on operational excellence and has launched several AI projects to drive efficiency and support profitable growth [7] - The shift from total contract value (TCV) to estimated annual recurring revenue (EARR) is aimed at better illustrating the recurring revenue business model [11] - The company is committed to delivering innovative high-value solutions that drive growth and success for customers [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, expecting revenue growth driven by IoT connections and improvements in adjusted EBITDA and free cash flow [34] - The company is mindful of evolving tariff policies that could create uncertainty for customers, but believes its recurring revenue model provides insulation against these pressures [34] - Guidance for 2025 includes revenue in the range of CAD 288 million to CAD 298 million, reflecting a 2% year-over-year growth [35] Other Important Information - Operating expenses in Q4 increased by CAD 4.8 million or 9.7% year over year, primarily due to unrealized foreign exchange losses [25] - The company plans to continue focusing on profitable growth while rationalizing unprofitable contracts and product lines [47] Q&A Session Summary Question: What were the drivers of connections and ARPU? - Management noted that the increase in connections came from low ARPU cases, which were not present for the full quarter, leading to a decrease in ARPU [40][41] Question: Is the low ARPU indicative of market development? - Management indicated that while low ARPU cases contributed to growth, they are not the only source of demand, with growth also seen in connected health and retail sectors [44] Question: What is the guidance for 2025 regarding hardware? - Management stated that they do not expect significant growth or decline in IoT Solutions, and they are moving away from lower-margin hardware deals [63] Question: Are customers slowing down their deployments? - Management has not seen a slowdown in customer demand but is being cautious due to potential tariff impacts [71] Question: How does AI factor into product evolution? - Management highlighted active conversations with customers about using AI to leverage collected data for better decision-making and new revenue streams [80] Question: What are the debt coverage targets? - Management indicated there is no specific target for debt coverage but emphasized a focus on improving cash flows and potentially paying down debt as cash flow improves [83]