Boxlight(US:BOXL)2023-05-11 02:20Financial Data and Key Metrics Changes - For Q1 2023, the company reported revenues of $41.2 million, a decrease of 18.6% compared to $50.6 million in Q1 2022, primarily due to softer demand and foreign exchange rate changes [60][50] - Gross profit for Q1 2023 was $15.1 million, with a gross profit margin of 36.8%, an increase of 1,190 basis points from the previous year [12][50] - The company reported a net loss of $2.9 million for Q1 2023, an improvement from a net loss of $4.9 million in Q1 2022 [43][62] - Adjusted EBITDA for Q1 2023 was $3.3 million, up from $1.2 million in Q1 2022, reflecting a 171% increase [50][62] Business Line Data and Key Metrics Changes - Hardware accounted for approximately 90% of total revenues in Q1 2023, with flat panel displays making up about 69% of that [84] - The company has seen a significant increase in gross profit margins, driven by lower manufacturing and freight costs, with expectations of maintaining margins above 30% in the near term [15][70] Market Data and Key Metrics Changes - Order intake in Q1 was $41.5 million, down 35% year-on-year, with 50% from the U.S., 47% from EMEA, and 3% from Asia-Pac [22] - Despite the decline in order intake, the company increased its market share in the U.S. from 5.3% to 7% and in EMEA from 5.6% to 6.2% year-on-year [22] Company Strategy and Development Direction - The company aims for modest single-digit revenue growth for the full year 2023, with expectations for stronger performance in the second half of the year [33][16] - The company is focusing on enhancing its product suite and has launched new products, including LED video walls and collaboration solutions [36][55] - There is a strategic emphasis on expanding into the corporate market, particularly in Germany, where margins are higher [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to revenue growth in the second half of the year, citing significant government funds available for education technology solutions [52][41] - The company anticipates increased order activity in Q3 and Q4, driven by pent-up demand following a slowdown in the first half of the year [65][90] Other Important Information - The company has a strong balance sheet with $11 million in cash and $62 million in working capital as of March 31, 2023 [33][44] - The company is considering a reverse stock split to maintain its NASDAQ listing due to stock price challenges [53][134] Q&A Session Summary Question: What gives confidence in achieving single-digit revenue growth despite a decline in orders? - Management indicated that there is significant activity in the pipeline, especially in the U.S., and expects school districts to start ordering soon, likely in Q3 and Q4 [90][121] Question: Are tenders actual orders or RFPs? - Tenders are larger projects where school districts request bids from several vendors, and the company is seeing an increase in these opportunities [92][90] Question: What is the outlook for gross profit margins? - Management expects gross profit margins to remain above 30%, although they may come down from the current high levels due to competitive pricing pressures [70][94] Question: What is the status of the company's partnerships, particularly with Bluum? - The company maintains a significant relationship with Bluum, which was its second-largest partner in Q1, and is actively working on numerous bids with them [138][139] Question: Why is the company requesting an increase in the share incentive plan? - The increase is to ensure there are enough shares available to meet future needs, not necessarily to issue them immediately [112][113]