Call Start: 17:00 January 1, 0000 5:46 PM ET Porch Group, Inc. (NASDAQ:PRCH) Q3 2024 Earnings Conference Call November 7, 2024 17:00 ET Company Participants Lois Perkins - Head of Investor Relations Matt Ehrlichman - Chairman, Founder & Chief Executive Officer Shawn Tabak - Chief Financial Officer Nicole Pelley - Senior Vice President of Product & Technology Matthew Neagle - Chief Operating Officer Conference Call Participants John Campbell - Stephens Jason Helfstein - Oppenheimer Steven Hromin - Oppenheime ...

Financial Data and Key Metrics - Revenue in Q3 2024 was $22 million, down 13% YoY and 5% sequentially, primarily due to weakness in China and Asia Pacific [7] - Gross margin was $12.8 million or 58.1%, close to the 60% target despite a low revenue quarter [9] - GAAP operating loss was $1.9 million, while adjusted operating income was $800,000 or 3.8% of revenue [9] - Adjusted EBITDA was $1.3 million or 6% of revenue [9] - Cash flow used in operations was $0.8 million in Q3 2024, compared to $4.4 million provided in the same period last year [24] Business Line Performance - Americas revenue was down 12% YoY but stabilized sequentially, with preclinical sales declining 26% YoY due to COVID-related respiratory products and telemetry system software [13] - Cellular and Molecular (CMT) revenue grew 15% YoY in the Americas, showing modest sequential growth [14] - Europe revenue was down 12% YoY but stabilized sequentially, with preclinical sales down 21% YoY and CMT sales down 7% YoY [15] - APAC revenue was down 20% YoY and 20% sequentially, with preclinical sales down 32% YoY and CMT sales down 5% YoY [16] Market Performance - Americas and Europe markets are stabilizing, with flat sequential revenue for the last three quarters [8] - China and APAC markets saw further weakness in Q3, but are expected to stabilize or improve modestly going forward [8] - Global trailing 3-month order profile shows an inflection point to growth since June, with booking trends increasing for four months [17] Company Strategy and Industry Competition - The company successfully transitioned all U.S. operations to a modern ERP system, improving inventory and supply chain management [10] - Cost reduction actions in Q3 and early Q4 are expected to reduce operating expenses by $1 million per quarter starting in Q4 [11] - New product introductions, including the SoHo telemetry devices and VivaMARS neurobehavioral monitoring system, are expected to drive incremental growth [31][32] - The company is focusing on high-growth areas like electroporation, bioproduction, and Mesh MEA organoid platforms, with strong interest from biopharma and CRO customers [34][37] Management Commentary on Operating Environment and Future Outlook - Management expects Q4 revenue to range between $23 million and $26 million, with gross margins in the 59% to 60% range [41] - Adjusted EBITDA margins are expected to be in the mid-teens for Q4, with full-year EBITDA margins in the high single-digits [42] - The company is optimistic about 2025, with new products expected to drive high single-digit to double-digit growth [50][57] Other Important Information - The company settled a defined benefit plan in the U.K., removing future annuity payments and resulting in a noncash realized loss of $1.2 million [22] - Net debt at the end of Q3 2024 was slightly above the net debt at the end of the year, with minimal net borrowings against the revolver [25] - The company amended its credit agreement in Q3, limiting additional borrowings until annual financials are reported in March 2025 [26] Q&A Session Summary Question: CRO Dynamics and Revenue Contribution - CROs contribute about 25% of the company's global revenue, with mixed performance due to tightening budgets in biotech and pharma [44][45] - The company expects CRO demand to stabilize, with a return to normalized run rates in safety and assessment [45][52] Question: New Product Growth Potential - Electroporation and bioproduction segments are expected to grow at 20% or better, contributing 10% of current revenue [57] - Mesh MEA organoid platforms are expected to grow at a 50% to 100% CAGR, potentially adding 4-5 points of total compound growth to the business [58][59] Question: China Market Stability - The company sees signs of stabilization in China, particularly in academic research, but CRO and pharma spending remains weak [51][63] - The company expects China to stabilize and grow modestly, focusing on high-value, IP-protected products [63][66] Question: Mesh MEA Order and Shipment Lag - The company is ramping up production of Mesh MEA systems, with plans to increase biochip production tenfold by Q2 2025 [69][71] - Early adopters are showing strong interest, with potential for $1 million to $2 million in quarterly growth from these systems [68][71]

Financial Data and Key Metrics - Revenue for Q1 2025 increased by 4% to $8.4 million compared to $8.1 million in the same quarter last year [33] - Gross profit increased by 22% to $2.8 million, representing 34% of total revenue, up from 29% in the prior year [34] - Operating expenses rose by 23% to $3.3 million, driven by increased legal and consulting fees related to business development initiatives [35] - Net loss for the quarter was $1.6 million, or $0.04 per share, compared to a net loss of $1.3 million, or $0.04 per share, in the same quarter last year [36] - EBITDA loss for the quarter was $0.5 million, compared to a loss of $0.4 million in the prior year [37] - Cash and cash equivalents stood at $4.3 million as of September 30, 2024, up from $3.5 million as of June 30, 2024 [38] - Total debt was $3.9 million, and backlog totaled $21 million as of September 30, 2024 [38] Business Line Data and Key Metrics - Infrared components accounted for $2.6 million or 31% of total revenue [33] - Visible components contributed $3.3 million or 39% of total revenue [33] - Assemblies and modules generated $1.1 million or 13% of total revenue [33] - Engineering services revenue was $1.4 million or 17% of total revenue [33] - The company's transformation from a component supplier to a system provider has resulted in 30% of revenue coming from system-level solutions, up from a negligible amount prior to the strategic shift [10] Market Data and Key Metrics - Defense-related sales accounted for over 30% of total revenue, with most coming from the US market [17] - The European defense market is emerging as a growth opportunity, with recent wins in Europe validating the company's strategy [16][17] - The company expects significant growth in the European defense market, with some customers potentially becoming 10% customers [17] - The total addressable market (TAM) for thermal cameras is estimated at $9 billion and growing rapidly [18] Company Strategy and Industry Competition - The company's growth strategy is built on three pillars: proprietary cameras and optics, government and defense solutions, and new commercial applications [8] - The company is leveraging its proprietary BlackDiamond materials to replace Germanium in defense applications, with Phase 2 funding from the DoD to qualify additional materials [13][15] - The Lockheed Martin missile program represents a transformative opportunity, with potential annual revenues of $50 million to $100 million if Lockheed wins against Raytheon [26] - The company is also targeting the automotive market, particularly in thermal imaging for ADAS systems, driven by new NHTSA mandates [29] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation and growth trajectory, citing strong progress in defense, automotive, and camera solutions markets [40] - The company is well-positioned to capitalize on the growing demand for thermal imaging in both defense and commercial applications [18][29] - Management highlighted the potential for significant growth in the European defense market, driven by recent wins and the acquisition of a European defense license [17] - The company is focused on scaling production capabilities to meet increasing demand, particularly in defense and industrial applications [30] Other Important Information - The company recently launched a new Optical Gas Imaging (OGI) camera platform for detecting fugitive gas emissions in the oil and gas industry [22] - The company has integrated Visimid Technologies' expertise to develop advanced thermal cameras and imaging systems, creating a strong entry point in the system-level product market [18] - The company has achieved airworthy qualification for its subsystem in the Lockheed Martin missile program and is preparing for low-rate initial production [25] Q&A Session Summary Question: European Market Traction and Timeline for 10% Customers - The European defense market follows a similar timeline to the US, with large programs typically taking up to two years to move from development to production [42] - The FPV drone application is an exception, with faster adoption due to the use of commercial solutions [44] - The sales team in Europe is strong, but local partners may be needed in certain countries [45] Question: Lockheed Martin Program Timeline - The Lockheed Martin program is progressing rapidly, with airworthy qualification achieved and flight tests underway [46] - The timeline for the Lockheed decision remains fluid, with indications expected around September or October 2025 [46] Question: Camera Business Growth and Backlog - The camera business is expected to see strong growth in the second half of the fiscal year, driven by new product launches and customer budget cycles [48][49] - The backlog is flat year-over-year, but this reflects growth in other businesses after the loss of a major customer [66] Question: Gross Margins on Large Defense Contracts - Gross margins on large defense contracts are expected to be between 30% to 40%, driven by government accounting standards [56] Question: Industrial Camera Go-to-Market Strategy - The company has strengthened its go-to-market strategy for industrial cameras, with early traction seen in the oil and gas sector [70][71] - The company expects to see significant revenue growth from industrial cameras as customer budgets take effect in January 2025 [72] Question: Apache Modernization and Space Applications - The company is involved in modernization programs for platforms like the Apache helicopter, though specific details on contracts like Project Longbow were not disclosed [74] - The company is not directly involved in space collision avoidance systems but may be indirectly involved through LiDAR customers [81]

Viad Corp (NYSE:VVI) Q3 2024 Earnings Call Transcript November 7, 2024 5:00 PM ET Company Participants Carrie Long - Investor Relations Steve Moster - President and Chief Executive Officer Ellen Ingersoll - Chief Financial Officer David Barry - President-Pursuit Conference Call Participants Tyler Batory - Oppenheimer Bryan Maher - B. Riley Alex Fuhrman - Craig-Hallum Operator Good afternoon, My name is Jayla and I will be your conference operator today. At this time I would like to welcome everyone to the V ...

BGSF, Inc. (NYSE:BGSF) Q3 2024 Earnings Conference Call November 7, 2024 9:00 AM ET Company Participants Sandy Martin - Managing Director-Three Part Advisors Beth Garvey - Chair, President and Chief Executive Officer John Barnett - Chief Financial Officer Conference Call Participants Operator Good morning, everyone. Welcome to the BGSF, Inc. Fiscal 2024 Third Quarter Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I will now turn the conferen ...

Fossil Group, Inc. (NASDAQ:FOSL) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Christine Greany - The Blueshirt Group Franco Fogliato - Director & CEO Andrew Skobe - Interim CFO Conference Call Participants Operator Good afternoon, ladies and gentlemen, and welcome to the Fossil Group Third Quarter 2024 Earnings Call. At this time, all parties are in listen-only mode. This conference call is being recorded and may not be reproduced in whole or in part without written perm ...

Immunic, Inc. (NASDAQ:IMUX) Q3 2024 Earnings Conference Call November 7, 2024 8:00 AM ET Company Participants Jessica Breu - Vice President Investor Relations and Communications Daniel Vitt - Chief Executive Officer and Director Glenn Whaley - Chief Financial Officer Jason Tardio - President and Chief Operating Officer Conference Call Participants William Wood - B. Riley Matt Cowper - Leerink Partners Matt Kaplan - Ladenburg Operator Good morning, and welcome to Immunic’s Third Quarter 2024 Earnings Call. M ...

FIGS, Inc. (NYSE:FIGS) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET Company Participants Tom Shaw - Senior Vice President, Investor Relations Trina Spear - Co-Founder & Chief Executive Officer Sarah Oughtred - Chief Financial Officer Conference Call Participants Dana Telsey - Telsey Group Josh Reiss - Raymond James Bob Drbul - Guggenheim Brooke Roach - Goldman Sachs Brian Nagel - Oppenheimer Lorraine Hutchinson - Bank of America Matt Koranda - ROTH Capital Nathan Feather - Morgan Stanley Joh ...

Financial Data and Key Metrics Changes - The company reported record third quarter results with revenue increasing by 74% year-over-year to $372.5 million, driven by a 76% increase in closed transactions [11][32] - Gross profit for Q3 2024 was $32.1 million, up from $18.8 million in Q3 2023, contributing to adjusted EBITDA of $13.3 million, a significant improvement from $3.5 million in the prior year [12][43] - The net loss narrowed to $2.6 million in Q3 2024 from a net loss of $4 million in Q3 2023, reflecting improved operational efficiency [42] Business Line Data and Key Metrics Changes - The mortgage and title business lines grew by a combined 97% year-over-year, with mortgage revenue increasing over 200% [13] - Revenue from ancillary businesses totaled $2.6 million, a 97% increase compared to Q3 2023, driven by 236% growth in One Real Mortgage [33] Market Data and Key Metrics Changes - The total value of homes transacted over the platform increased to $14.4 billion in Q3 2024, a 78% year-over-year increase [46] - The median sale price of properties sold by agents was $383,000, representing a 4% year-over-year increase [46] Company Strategy and Development Direction - The company aims to redefine the role of real estate brokerage by providing agents with a technology platform that eliminates the need for physical office space and enhances agent productivity through AI tools like Leo Copilot [7][52] - Future plans include rolling out a consumer-facing product to streamline client experiences and enhance the attachment of higher-margin ancillary services [9] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding a meaningful recovery in the housing market until mortgage rates stabilize in the mid-5% range, but remains focused on delivering exceptional value to agents and clients [14][15] - The company believes it is well-prepared to succeed regardless of broader market conditions, as demonstrated by the success of its recent RISE Conference [15] Other Important Information - The company ended Q3 with 21,770 agents, a 79% increase year-over-year, and has added over 700 agents since the start of Q4 2024 [13] - The headcount efficiency ratio improved significantly, with one full-time employee supporting 140 agents, up from 101 a year ago [48] Q&A Session Summary Question: Sustainability of Operating Leverage - Management confirmed that the operating leverage is sustainable, with a focus on efficiency and automation despite additional regulatory requirements [58][59] Question: Revenue Churn - Management noted that revenue churn has remained low due to the value created on the platform for high-producing agents [62] Question: Agent Recruiting Pipeline - Management indicated that Q4 typically sees stronger agent additions and is optimistic about the pipeline for 2025 [66] Question: Real Wallet Usage - Early feedback on Real Wallet has been positive, with over $100,000 spent on debit cards shortly after launch [69] Question: Ancillary Services Growth Target - Management aims to increase attach rates for ancillary services to double digits, leveraging technology to enhance integration [73] Question: NAR Settlement Impact - Management believes that any potential commission rate drops could accelerate growth as agents seek better brokerage options [80] Question: Future Expansion Plans - The company plans to focus on maximizing growth in the U.S. and Canada before considering international expansion [89]

Financial Data and Key Metrics - Q3 2024 revenue was $688 million, above the high end of guidance and down 19% YoY [6][18] - Adjusted EBITDA was $74 million, above consensus estimates but down 45% YoY [6][29] - Net income was $7 million, down 87% YoY, with GAAP diluted EPS of $0.18 and adjusted EPS of $0.61 [30] - Days sales outstanding (DSO) improved to 60 days, a 10-day reduction since the start of 2024 [31] - Operating cash flow was $67 million, with capital expenditures of $19 million [31] Business Segment Performance Nurse and Allied Solutions - Revenue was $399 million, down 30% YoY and 10% sequentially, driven by lower volume and rates in travel nurse and allied staffing [15][21] - Travel nurse revenue was $244 million, down 37% YoY, while allied revenue was $141 million, down 16% YoY [22] - Segment operating margin was 8.8%, down 570 basis points YoY, impacted by lower gross margins and deleveraging of SG&A expenses [23] Physician and Leadership Solutions - Revenue was $181 million, up 13% YoY due to the MSDR acquisition but down 3% sequentially [16][24] - Locum tenens revenue was $142 million, up 26% YoY, while interim leadership and search revenues declined [25] - Segment operating margin was 10%, down 350 basis points YoY, primarily due to lower gross margins [26] Technology and Workforce Solutions - Revenue was $108 million, down 11% YoY, with language services up 13% YoY but VMS revenue down 34% YoY [17][27] - Segment gross margin was 57.9%, down from 65% YoY, driven by a revenue mix shift away from higher-margin VMS and outsourced solutions [28] Market and Industry Trends - Demand for travel nurse staffing has increased 60% from the April low but remains 35% below 2019 levels [8] - Unfilled orders for nurse and allied staffing increased from 9% last quarter to 14% in Q3, indicating pricing challenges [8][9] - Some clients are raising bill rates for hard-to-fill specialties, signaling a potential normalization in the staffing market [39] - The industry is experiencing margin pressure due to competition and wage inflation, but conditions are expected to improve in 2025 [10][38] Strategic Direction and Competitive Landscape - The company is focusing on technology-driven solutions, such as the WorkWise platform, to enhance workforce planning and client engagement [13][14] - AMN has achieved a net positive MSP win-loss score for 2024, reflecting improved competitive positioning [13] - The company is leveraging its broad solution set to help clients build sustainable workforce strategies, with top clients using an average of 10 solutions [14][92] Management Commentary on Operating Environment and Outlook - Management noted signs of market stabilization, with increasing demand for travel nurse staffing and stable bill rates [7][39] - The company expects labor scarcity to reemerge as a key industry driver in 2025, with potential margin improvements as market conditions normalize [10][38] - Q4 2024 revenue guidance is $685 million to $705 million, with adjusted EBITDA margin expected to be 9.2% to 9.7% [33][34] Other Important Information - The company paid down $60 million of revolver debt in Q3, bringing the year-to-date paydown to $175 million [32] - AMN increased its maximum leverage covenant on the revolving line of credit from 4x to 4.5x through the end of 2025 [32] - The international nurse business, impacted by visa retrogression, is expected to taper off in Q2 2025 and resume growth by the end of 2025 [89][90] Q&A Session Summary Margin Outlook and SG&A - Management discussed potential gross margin improvements through favorable business mix and bill-pay spread recovery [42][43] - SG&A expenses are expected to remain stable, with potential leverage as higher-margin businesses grow [44] Language Services Growth - Language services revenue grew 13% YoY in Q3, with strong client demand and high gross margins [46] - The business is expected to grow at double-digit rates with gross margins above 40% [47] Travel Nurse Demand and Pricing - Travel nurse demand has improved since April but remains below pre-pandemic levels [80] - Some clients are raising bill rates for hard-to-fill specialties, indicating potential market normalization [39][52] VMS and MSP Trends - VMS revenue declined in Q3 and is expected to decline further in Q4, reflecting broader market trends [54] - AMN has achieved a net win position in MSPs for 2024, driven by improved competitive positioning [54][78] International Nurse Business - The international nurse business, impacted by visa retrogression, is expected to taper off in Q2 2025 and resume growth by the end of 2025 [89][90] - A $100 million increase in international nurse revenue would improve consolidated adjusted EBITDA margin by 100 basis points [58] Labor Disruption and Seasonal Trends - Q4 guidance includes $45 million in non-recurring revenue from labor disruptions, which is not expected to recur in Q1 [36][65] - Seasonal orders, particularly winter orders, are expected to support Q1 2025 performance [86] Industry Consolidation and Competitive Landscape - Management expects industry consolidation driven by client demand for tech-enabled solutions and market fragmentation [84] - AMN is focused on acquiring capabilities that enhance its competitive positioning or scale opportunities [84]