Financial Data and Key Metrics Changes - The company's second quarter revenue was $500,000, with $300,000 from Acelsius and $200,000 from management fees of the Inventis ESG fund [24] - General and administrative expenses were approximately $18.6 million, down from $19.7 million in the prior quarter [26] - EBITDA for the quarter was a loss of approximately $135 million, with adjusted EBITDA showing an improvement to a loss of $16.2 million from a loss of $21.8 million in the first quarter [27] Business Line Data and Key Metrics Changes - Acelsius generated $300,000 in revenue, marking its continued growth in the data center liquid cooling market [24] - The company has engaged with its first hyperscaler for a proof of concept system, with expectations for further engagements [9][10] - The contracted go-to-market partner network has grown to 21, an increase of over 100% since the beginning of 2025 [11] Market Data and Key Metrics Changes - The data center liquid cooling market is experiencing rapid growth, driven by the increasing adoption of AI workloads [25] - A UBS analysis indicated that 100% of surveyed IT organizations plan to deploy AI workloads, with 14% already having done so [7] - Hyperscalers are projected to spend approximately $350 billion on data centers this year, with expectations to increase to $400 billion next year [47] Company Strategy and Development Direction - The company is focused on establishing itself as a leader in the two-phase directed chip liquid cooling market, leveraging its differentiated technology [17] - The management emphasizes the importance of building relationships with key industry players, including hyperscalers and OEMs [9][10] - The company has plans to open a demonstration point in the Bay Area to showcase its technology [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on growth expectations, citing increasing bookings and a shift towards larger production orders [36][38] - The management noted that the adoption cycle for their technology is progressing as expected, with early signs of traction in the market [39] - There is a strong belief that the company's operating model is underappreciated by the market, with significant value creation opportunities ahead [18] Other Important Information - The company issued convertible debentures totaling $30 million, improving its capital position [28] - The balance sheet showed an increase in cash to $12 million, up from $11.1 million at the end of the previous year [29] - The company is actively managing its cash flow and is focused on additional capital raises to support growth opportunities [31] Q&A Session Summary Question: Commentary on revenue growth inflection in the second half of the year - Management indicated that there has been significant activity and that bookings are expected to increase, reflecting traction at Acelsius [34][35] Question: Insights on the first hyperscaler proof of concept - Management confirmed that the initial proof of concept is a significant milestone and that successful trials could lead to large-scale orders [45][46] Question: Feedback on thermal simulation accuracy for AI workloads - Management explained that their thermal test vehicles allow for accurate simulations of high-density workloads at a fraction of the cost, with positive feedback from initial deployments [58][66]
Innventure, Inc.(INV) - 2025 Q2 - Earnings Call Transcript