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]
Inseego (INSG) - 2020 Q4 - Earnings Call Transcript