Ideanomics(US:IDEX)2019-05-02 02:40Financial Data and Key Metrics Changes - Revenue for Q1 2019 was $26.9 million, a decrease of approximately $158.9 million or 86% compared to $185.9 million in Q1 2018, primarily due to a shift in business focus from logistics management to digital business consulting services [16][17] - Gross profit for Q1 2019 was approximately $26.7 million, representing an increase of 6,689% from $0.393 million in Q1 2018, with a gross profit margin of 99% compared to 0% in 2018 [19][22] - Net earnings per share for Q1 2019 was $0.19, compared to a loss per share of $0.05 in the same period in 2018 [22] Business Line Data and Key Metrics Changes - The company has transitioned from logistics management to digital asset management services, resulting in a significant reduction in cost of revenues from $185.5 million in Q1 2018 to $0.257 million in Q1 2019 [16][18] - The digital asset management services have contributed to the high gross margin due to low incremental costs associated with delivering these services [20] Market Data and Key Metrics Changes - The company has signed agreements with major banking partners in China to support electric bus lease financing activities, indicating a strategic focus on the electric vehicle market [9] - The company is working on establishing a significant presence in the ASEAN region, particularly in Malaysia, to leverage Chinese manufacturing capabilities for electric vehicles [33][36] Company Strategy and Development Direction - The company is focusing on building a comprehensive end-to-end value chain for CleanTech and Greentech electric vehicles, including financing, manufacturing, and sales [25][26] - The strategy includes expanding into the electric bus market in China and Malaysia, with plans to establish assembly plants and partnerships with local governments [33][34] - The company aims to become a leader in the tour bus market in China, targeting the sale of 200,000 buses over the next three years [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability throughout 2019, driven by digital asset management and electric vehicle financing [24][44] - The company is actively engaging with institutional investors to communicate its growth potential and revenue generation capabilities [53][54] - Management acknowledged the need for cost adjustments to optimize operations and improve margins moving forward [55][56] Other Important Information - The company has divested some legacy assets from its old media business, which has positively impacted Q1 results [12] - The company is in the process of integrating CommentsRadar into its Grapevine division to enhance influencer marketing capabilities [9] Q&A Session Summary Question: Can you explain the difference between the reported revenue and the upfront payment from GT Dollar? - Management clarified that the upfront payments were recorded differently due to the timing of service delivery and tax advice [48] Question: What is the company's plan for converting tokens received from GT Dollar? - Management indicated that they are cautiously converting tokens into high liquidity coins like Bitcoin and Ethereum, while avoiding flooding the market [50] Question: What is management doing to increase institutional ownership? - Management is actively engaging with institutional investors and has begun discussions to attract investments as revenues from electric vehicle deals materialize [53][54] Question: Can you provide an update on bond sales? - Management confirmed that asset packages are being prepared for underwriters, and they expect to bring them to market soon [65][66]