Wix.com (WIX) Q2 2025 Earnings Call August 06, 2025 08:30 AM ET Speaker0Thank you for standing by. Hello, and welcome to Wix Second Quarter twenty twenty five Earnings Conference Call. Please note that this call is being recorded. I will now hand the call over to the Wix team. Please go ahead.Speaker1Thanks and good morning everyone. Welcome to Wix's Second Quarter twenty twenty five Earnings Call. Joining me today to discuss our results are Abhishai Abrahami, CEO and Co Founder Nir Zohar, President and Co ...

Financial Data and Key Metrics Changes - For Q2 2025, revenue was $184.6 million, up 14.6% year over year, with subscription revenue growing 15.7% and cloud revenue increasing by 29.9% [5][26] - Adjusted EBITDA rose to $38.4 million, representing an EBITDA margin of 20.8% [5][30] - Annual recurring revenue (ARR) grew 16.1% to $636.6 million, with average annual revenue per customer increasing 12.7% to $142.6 thousand [5][27] - Gross revenue retention (GRR) remained at 95%, while net revenue retention (NRR) decreased to 108%, down from 109% in Q1 2025 [6][28] Business Line Data and Key Metrics Changes - Subscription revenue increased to $157.8 million, while services revenue grew 8.3% to $26.7 million [27] - Cloud revenue was $86.2 million, up 29.9% year over year, with Ecosio contributing $3.4 million to revenue [27] - Ecosio's ARR reached $10.8 million, a 33% increase from the prior quarter [13][27] Market Data and Key Metrics Changes - The company noted a slowdown in ERP migrations, elongating deal cycles and impacting pipeline build [6][7] - In Europe, there was strong momentum driven by the upcoming e-invoicing mandates, particularly in Belgium, France, and Germany [13][20] Company Strategy and Development Direction - The company is focused on leveraging cloud ERP upgrade cycles and addressing regulatory changes globally to drive growth [8][11] - Investments in AI and e-invoicing solutions are prioritized to enhance customer experience and operational efficiency [15][16] - The company aims to maintain a strong position in the enterprise market, with a focus on expanding its global compliance platform [14][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic factors impacting customer activity and necessitating a reduction in full-year guidance [4][6] - Despite short-term challenges, management remains confident in long-term growth drivers, including e-invoicing and cloud migrations [8][48] - The company is taking steps to control expenses and improve adjusted EBITDA margins while focusing on long-term strategic goals [7][25] Other Important Information - The company ended Q2 2025 with over $284.4 million in unrestricted cash and cash equivalents, along with $300 million of unused availability under its line of credit [31] - Guidance for Q3 2025 expects revenues of $190 million to $193 million and adjusted EBITDA of $38 million to $40 million [32] Q&A Session Summary Question: Impact of macro factors on guidance - Management indicated that the macro impact primarily affects entitlements and deal activity, leading to a cautious revenue outlook [36][37] Question: E-invoicing adoption rates - Management noted that the end-to-end offering is differentiating and that early customers are expanding their coverage, indicating strong adoption [40][41] Question: Long-term growth outlook - Management remains confident in long-term growth despite short-term deceleration, citing strong regulatory tailwinds and customer durability [46][48] Question: Changes in hiring plans - Management is adjusting hiring plans to focus on strategic areas while leveraging internal efficiencies [49][50] Question: Progression of the quarter - Management observed a strong start in Q1, but noted softness in May and June, impacting deal cycles [55][56] Question: SAP deal activity - Management indicated that uncertainty in the macro environment is causing delays in cloud transformation decisions among customers [57][58] Question: E-invoicing opportunities in Europe - Management highlighted the competitive landscape and the importance of being a single provider across multiple jurisdictions [99][100]

Payoneer Global (PAYO) Q2 2025 Earnings Call August 06, 2025 08:30 AM ET Speaker0Good morning. Thank you for standing by. Welcome to Payoneer's Second Quarter twenty twenty five Earnings Conference Call. At this time, all lines have been placed on mute to prevent any background noise. Following the speakers' remarks, we will open the lines for your questions.As a reminder, this conference call is being recorded. I would now like to turn the call over to Michelle Wang, Payoneer's Vice President of Investor R ...

Financial Data and Key Metrics Changes - The company generated positive free cash flow for the third consecutive quarter, achieving $13 million in Q2, marking the first time in its history for positive cash flow in the first half of the year [26][20] - Gross margins expanded by 50 basis points year over year and 120 basis points sequentially, driven by a favorable product mix and pricing discipline [7][22] - Adjusted EBITDA for Q2 was $111 million, with a sequential margin growth of 180 basis points [25][21] Business Line Data and Key Metrics Changes - In Banking, revenue increased by $50 million sequentially, with gross margin up 140 basis points year over year and 180 basis points sequentially [27][28] - Retail saw sequential growth in order entry, revenue, and backlog in Q2, although gross margin decreased by 70 basis points sequentially and 190 basis points year over year [29][30] - The company reported a product backlog of approximately $980 million at the end of Q2, up from $900 million at the end of Q1, with a 10% year-over-year growth in product orders [21][6] Market Data and Key Metrics Changes - The company is capitalizing on the $32 billion banking and retail automation market, with strong demand for advanced ATMs and AI-driven checkout solutions [9][10] - In the Middle East, the introduction of dual power ATMs has opened new customer opportunities, while in India, compact and energy-efficient ATMs are expected to drive growth [11][12][56] Company Strategy and Development Direction - The company is focused on a three-year growth plan, emphasizing disciplined growth and profitability through branch automation and AI-driven solutions [8][9] - The strategy includes local manufacturing to enhance service capabilities and reduce costs, particularly in North America and India [14][56] - The company aims to maintain a strong balance sheet while targeting nearly doubling free cash flow generation by 2027 [34][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the higher end of revenue, adjusted EBITDA, and free cash flow guidance for the year, supported by strong demand and backlog [31][33] - The company anticipates a recovery in the retail business in the second half of the year, driven by ongoing projects and a growing pipeline in North America [30][38] - Management highlighted the importance of continuous improvement and lean operations to enhance productivity and customer satisfaction [16][18] Other Important Information - The company repurchased $30 million worth of shares during the quarter, reflecting its commitment to returning capital to shareholders [7][34] - The effective non-GAAP tax rate for the year is expected to be in the range of 40% to 45%, with a long-term goal of reducing it to the low to mid-30s by 2027 [32][75] Q&A Session Summary Question: Confidence in retail business recovery - Management noted a higher mix of point of sale revenue impacting margins but expressed optimism about sequential improvements in revenue and operating profit [43][44] Question: Teller Cash Recyclers (TCR) adoption rates - Management indicated that they are in the third or fourth inning of TCR adoption, with significant opportunities for cross-selling between ATMs and teller services [50][53] Question: Indian market opportunities - The company is confident in achieving similar margins for compact ATMs in India, with a focus on growing the installed base and service annuity [56][57] Question: Retail and product gross margin expectations - Management expects improvements in retail margins in Q3 and Q4, driven by growth efforts and new software features [58][59] Question: Impact of tariffs on costs - Management clarified that the reduction in tariff impact is due to localized manufacturing and operational efficiencies [62][64]

Financial Data and Key Metrics Changes - Second quarter revenue was $148 million, reflecting a 2% decrease compared to 2024, but organic growth was 6% when adjusting for the divestiture of the Advanced Rehabilitation business [19][21] - Adjusted earnings per share increased by 31% to $0.21, while adjusted EBITDA margin was 23%, indicating strong gross margin stability [8][22] - Adjusted net income rose 45% to $18 million, driven by lower interest expenses and reduced employee equity-based compensation [23] Business Line Data and Key Metrics Changes - Surgical Solutions revenue grew by 11%, with strong double-digit growth in Ultrasonics [21] - Restorative Therapies experienced a 32% decrease in revenue due to the divestiture, but organic growth was 11% when excluding this impact [22] - Pain Treatments revenue increased by 1%, with organic growth estimated at 4% to 5% [21][36] Market Data and Key Metrics Changes - International segment revenue increased by 12%, with organic growth climbing 24% [22] - The pain treatment market is expected to grow above 20% annually in the US, with a total addressable market of approximately $2 billion [12] Company Strategy and Development Direction - The company aims to drive above-market revenue growth, expand profitability, and accelerate free cash flow generation [8][18] - Focus on expanding the PNS market with the recent clearance of StimTrial and Telesman, which are expected to generate significant revenue [12][15] - Plans for a limited commercial release of new products in the third quarter, with broader rollout expected in early 2026 [15][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue and adjusted EBITDA guidance, despite challenges from foreign exchange and tariffs [28][29] - The company is well-positioned for sustained growth, with expectations for cash flow from operations to nearly double compared to the previous year [24][25] Other Important Information - The company was recognized as one of the top 10 companies to work for in North Carolina, highlighting positive employee engagement [18] - Recent refinancing of credit facilities improved liquidity and reduced annual interest expenses [27] Q&A Session Summary Question: Can you remind us what growth would have been year over year on an organic basis if not for that favorable rebate adjustment in 2Q 2024? - Management indicated that normalized growth would be around 4% to 5% [32][33] Question: What was the volume growth for Duralane in the quarter? - Management noted that Duralane continues to be a strong driver, with performance slightly above market growth in the mid-single digits [36] Question: What was BGS growth in the quarter? - BGS experienced high single-digit growth in the second quarter, with expectations for continued acceleration [40][42] Question: Can you provide more color on Exagen's strength in the quarter? - Growth in Exagen was attributed to improved commercial effectiveness and stronger execution from the sales team [48][50] Question: What are the expectations for R&D spending in the future? - R&D investment is expected to ramp up as the company focuses on expanding its Ultrasonics and PNS platforms [56][58] Question: What drove the increase in tariff expectations? - The expected tariff impact increased to approximately $3 million, primarily affecting the back half of the year [67][68]

Griffon (GFF) Q3 2025 Earnings Call August 06, 2025 08:30 AM ET Speaker0Greetings, and welcome to Griffin Corporation's Fiscal Third Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. The question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Griffin Corporation's CFO, Brian Harris.Please go ahead, sir.Speaker1Thank you. Good morning, and welcome to ...

Financial Data and Key Metrics Changes - For Q2 2025, total net revenue was $5.3 million, down from $9.5 million in Q2 2024, primarily due to lower recognition of deferred revenue related to the YUTIQ product rights [21][22] - Operating expenses increased to $67.6 million from $44 million in the prior year, driven by higher clinical trial costs [22] - Net loss for the quarter was $59.4 million, or $0.85 per share, compared to a net loss of $30.8 million, or $0.58 per share, in the prior year [22] Business Line Data and Key Metrics Changes - The company has transitioned from specialty pharma to a clinical-stage biopharmaceutical company, focusing on the development of Duravu for wet AMD and DME [7][8] - Enrollment for the Phase III trials (Lugano and Lucia) was completed ahead of schedule, with over 800 patients enrolled [8][15] Market Data and Key Metrics Changes - The wet AMD market is valued at $10 billion and is currently dominated by anti-VEGF biologics [9][10] - Duravu aims to address the need for improved durability in treatment, with a proposed six-month dosing interval compared to the average two-month interval for current treatments [14][10] Company Strategy and Development Direction - The company is focused on advancing Duravu as a new treatment paradigm in retinal diseases, with plans for an NDA filing anticipated following positive Phase III data [18][24] - A state-of-the-art cGMP manufacturing facility has been established to support commercial production of Duravu [8][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming top-line data for the Phase III trials, expected in mid-2026, and emphasized the importance of a differentiated product profile for Duravu [16][24] - The company is well-capitalized, with cash and investments totaling $256 million, expected to support operations into 2027 [20][22] Other Important Information - The company has eliminated debt and extended its cash runway, positioning itself favorably for future developments [8][20] - Positive feedback from the retina community was noted, highlighting excitement for the potential of Duravu [88] Q&A Session Summary Question: Can you speak to the overall trial conduct of the pivotal studies in wet AMD? - The company has a strong phase III study experience and is focused on ensuring protocol adherence and patient safety during the trial conduct [28][30] Question: What are the expectations regarding the cadence of safety updates? - Periodic updates on safety will be provided, although a specific cadence has not been established yet [39] Question: Can you elaborate on the rescue criteria for the trials? - The rescue criteria are designed to ensure that only patients who truly need additional treatment are rescued, based on specific clinical indicators [42][44] Question: What is the baseline division between naive and previously treated patients? - The target was a 75-25% ratio of naive to previously treated patients, which was successfully achieved [50] Question: What feedback has been received from the physician community regarding the ASRS? - Positive feedback was received, with physicians expressing excitement about the potential of Duravu and its new mechanism of action [88] Question: Will there be another data safety monitoring committee meeting before the first data readout? - Yes, there will be at least two data safety monitoring committee meetings before the top-line results [99]

Financial Data and Key Metrics Changes - Q2 net investment income per share was $0.47, representing an annualized yield on book value of 10.7%, exceeding regular dividend payout by 12% [6][7] - Q2 earnings per share were $0.37, reflecting an annualized return on book value of 8.3% [7] - Net asset value per share was $17.56, down $0.08 from the prior quarter [7][24] - Total investment income increased to $71 million from $66.8 million in the previous quarter [22] - Net investment income for the quarter was $30.6 million, down from $32.1 million in the prior quarter [24] Business Line Data and Key Metrics Changes - New investment fundings during Q2 totaled $530 million, with $242 million into 12 new companies and $273 million into 81 existing companies [15] - 93% of new fundings were in first lien senior secured loans, indicating a focus on downside management [16] - The investment portfolio at fair value was approximately $2.5 billion across 185 portfolio companies [18] Market Data and Key Metrics Changes - Gross originations were $530 million, up 73% year over year [9] - The weighted average spread of new originations was over 580 basis points [11] - 62% of outstanding debt was in floating rate debt, positioning the company favorably in a higher interest rate environment [25] Company Strategy and Development Direction - The company remains focused on investing in the middle market to drive attractive returns for investors [28] - The strategy includes leveraging Bain Capital's platform advantage to source investment opportunities [10] - The company aims to maintain a disciplined underwriting approach while navigating competitive market conditions [11] Management's Comments on Operating Environment and Future Outlook - Management noted increased market volatility due to higher tariffs but observed a return to normalized deal volume [8] - The company is well-positioned to navigate the current market environment despite spread compression [11] - Dividend coverage remains strong, with a focus on maintaining an attractive dividend policy [13] Other Important Information - The company declared a third-quarter dividend of $0.42 per share, with total dividends for the third quarter amounting to $0.45 per share [7] - Non-accrual investments represented 1.7% of the total investment portfolio, with a slight uptick due to one new addition [12][21] Q&A Session Summary Question: What drove the decision to refinance the 2019 middle market securitization? - The refinancing was driven by attractive pricing opportunities in the market, allowing the company to issue at a lower cost compared to the previous securitization [31][32] Question: How would you characterize the origination activity for the quarter? - The activity was roughly 50% new company originations and 50% existing company add-ons, driven by strong relationships and expanded outreach in the middle market [34][35] Question: Can those investments eventually be sold down into the JVs? - Yes, the investments are primarily first lien loans that fit well into the joint ventures if the company decides to move them in future quarters [36]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $226 million, up 12% year-on-year, with EBITDA margins expanding by 60 basis points to 6% [33][34] - Consolidated sales reached approximately $3.7 billion, an increase of $25 million compared to Q3 fiscal year 2024, driven by $84 million of favorable FX [34][35] - Adjusted net income was $38 million, or $0.45 per share [34] Business Line Data and Key Metrics Changes - In The Americas, improved business performance of $20 million was primarily driven by favorable commercial actions and lower input costs, despite lower net engineering recoveries [39] - EMEA saw a positive business performance of approximately $6 million, offset by lower volume and mix [40] - Asia's results improved year-on-year by $12 million, with EBITDA margin expanding by 150 basis points [41] Market Data and Key Metrics Changes - The Americas outperformed industry volumes, while EMEA and Asia faced ongoing customer volume and mix headwinds [8][15] - Sales in China underperformed industry production, primarily due to lower volumes from traditional luxury OEM customers [35][41] - The company expects to capitalize on growth opportunities with local China OEMs, despite near-term pressure on revenue from China [18][19] Company Strategy and Development Direction - The company is focused on leveraging its competitive advantages in innovation and operational execution to win new business, particularly in the context of U.S. onshoring [7][20] - The management emphasized a balanced capital allocation plan, including share repurchases and maintaining a strong cash balance [14][31] - The company anticipates significant U.S. onshoring opportunities with minimal incremental investment, aiming to capture a share of the estimated 600,000 units of annual vehicles potentially moving to the U.S. [23][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage tariff impacts, with net tariff expenses expected to decrease in Q4 [16][40] - The company is optimistic about achieving mid-single-digit EBITDA margins in EMEA over the next few years, driven by restructuring benefits and new business awards [17][40] - The management team believes that strong business performance will continue into 2026, despite uncertainties related to production volumes [60][61] Other Important Information - The company generated strong free cash flow of $115 million in Q3, maintaining a strong cash balance of $860 million and ample liquidity of $1.7 billion [14][44] - The company repurchased $50 million of its stock in Q3, bringing total repurchases for the fiscal year to $75 million, or approximately 4% of outstanding shares [14][44] Q&A Session Summary Question: Clarification on Nissan business and onshoring opportunity - Management confirmed that the Nissan business moving to the U.S. represents incremental revenue, estimated between $150 million to $200 million starting in 2026 [51][52] Question: Guidance on business performance into 2026 - Management indicated that business performance is expected to be a positive factor heading into 2026, with production volumes being a key variable [60][61] Question: Guidance for sales and EBITDA - Management explained that the increase in sales guidance was primarily due to FX impacts, which have a low margin pull-through effect [64] Question: Competitive advantage from local footprint - Management highlighted that the cost of establishing a JIT plant in the U.S. ranges from $20 million to $30 million, emphasizing the importance of customer relationships and delivery track record [83][84] Question: Margin performance and restructuring in Europe - Management indicated that achieving mid-single-digit EBITDA margins in Europe will require stability in production and successful execution of restructuring plans over the next few years [106][107]

Financial Data and Key Metrics Changes - For Q2 2025, Lexicon Pharmaceuticals reported revenues of $28.9 million, a significant increase from $1.6 million in Q2 2024, primarily driven by $27.5 million in licensing revenue from Novo Nordisk [24] - The net income for Q2 2025 was $3.3 million, or $0.01 per share, compared to a net loss of $53.4 million, or $0.17 per share, in the same period of 2024 [25] - Total operating expenses decreased by $31.9 million quarter over quarter, reflecting the company's strategic repositioning as an R&D-focused entity [27] Business Line Data and Key Metrics Changes - Research and development expenses for Q2 2025 decreased to $15.7 million from $17.6 million in Q2 2024, mainly due to lower external research expenses on the PROGRESS clinical trial [25] - Selling, general, and administrative expenses decreased to $9.4 million in Q2 2025 from $39.2 million in 2024, attributed to reduced marketing efforts for MPEFA [25] Market Data and Key Metrics Changes - The company is actively pursuing regulatory approvals for sotagliflozin in various international markets, including the UAE, Saudi Arabia, Canada, Australia, New Zealand, and several Southeast Asian countries [31] - The ongoing Phase III SONATA study for sotagliflozin is the only registrational trial currently evaluating treatment in both obstructive and non-obstructive hypertrophic cardiomyopathy (HCM) [20] Company Strategy and Development Direction - Lexicon is focused on advancing its innovative portfolio of potential medicines, with a strategic pivot towards R&D that has taken shape in 2025 [6] - The company aims to maximize the potential of its drug candidates through partnerships, particularly with Novo Nordisk for LX9851 and Viatris for sotagliflozin [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress of their R&D programs and the potential for pilavapitan to become a transformative therapy for patients with neuropathic pain [14] - The company anticipates presenting full progress data for pilavapitan in Q3 2025 and is preparing for an end-of-Phase II meeting [33] Other Important Information - The company ended Q2 2025 with $168 million in cash and short-term investments, down from $238 million at the end of 2024 [26] - Lexicon expects to recognize the remaining $17.5 million of licensing revenue from the Novo agreement in the second half of 2025 [26] Q&A Session Summary Question: Can you walk us through the SOTA CROSS trial and its design? - Management explained that the SOTA CROSS trial is designed to evaluate therapeutic options for non-obstructive HCM, with a crossover design allowing patients to serve as their own control [42] Question: How does the company plan to take advantage of the push for non-opioid pain medications? - Management highlighted their engagement with legislative efforts supporting non-opioid medications and expressed optimism about the potential for pilavapitan in this context [48] Question: What is Novo's plan for the Phase I study in obesity? - Management indicated that Novo is expected to vigorously pursue the Phase I program for LX9851, with a focus on oral and combination therapies [56] Question: How does the recent Vertex announcement impact confidence in the pain market? - Management expressed increased confidence in their own neuropathic pain program, citing successful Phase II results with pilavapitan [72] Question: Will an echo be required for patients if sotagliflozin is approved? - Management stated that while an echo will be part of the study protocol, it may not be a major impediment for patient suitability if approved [78]