Wix.com Ltd. (Wix) Q4 2024 Earnings Conference Call February 19, 2025 8:30 AM ET Company Participants Emily Liu - IR Avishai Abrahami - CEO and Co-Founder Nir Zohar - President and COO Lior Shemesh - CFO Conference Call Participants Ygal Arounian - Citigroup Elizabeth Porter - Morgan Stanley Deepak Mathivanan - Cantor Fitzgerald Josh Beck - Raymond James Andrew Boone - Citizens JMP Securities Operator Good day, and thank you for standing by. Welcome to the Wix Fourth Quarter and Full Year Earnings Conferenc ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for 2024 reached a record $535 million, reflecting a 13% increase in constant currency [9][25] - Free cash flow also set a record at $294 million, marking the fifth year in the past six with over 50% conversion of adjusted EBITDA to free cash flow [9][38] - Organic sales grew 4% for the full year, with adjusted EBITDA margins improving by 120 basis points on a constant currency basis [23][25] Business Line Data and Key Metrics Changes - Semiconductor solutions experienced a 14% organic growth, driven by improved fab utilization and demand for advanced packaging applications [27][29] - Circuitry solutions grew 12% organically, benefiting from investments in AI and data centers [30] - The assembly solutions business grew 1% organically, with low single-digit improvement in the second half of the year [36] Market Data and Key Metrics Changes - The electronics business grew 7% organically, while the industrial and specialty segment declined by 1% [24] - Demand for advanced packaging solutions is increasing, particularly in AI data centers and electric vehicles [19][30] - The industrial solutions segment saw a 2% organic decline, primarily due to lower commodity price-based surcharges and soft European industrial markets [36] Company Strategy and Development Direction - The company is focusing on high-value niches in the electronics industry, particularly in semiconductor and advanced packaging markets [12][42] - A strategic decision was made to sell McDermott Graphics Solutions for $325 million to enhance the portfolio and focus on higher growth areas [14][16] - The company aims to continue penetrating the fastest growing segments and expects high single-digit organic growth in the electronics segment for 2025 [43][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued demand growth in high-performance computing and data storage, which should drive product lines related to wafer level and advanced packaging [42] - There are uncertainties in the global industrial production outlook, with potential risks from tariffs impacting demand [46][85] - The company anticipates a $30 million impact from the sale of the graphics business and a $15 million foreign exchange headwind for 2025 [48][49] Other Important Information - The company generated a record $294 million in free cash flow, with a strong balance sheet and net leverage at 2.8 times [38][40] - Capital expenditures were higher than historical averages, with plans to invest in strategic projects supporting long-term growth [39][141] - R&D spending is expected to increase slightly as a percentage of sales, with investments in new labs and technology [150][156] Q&A Session Summary Question: How does the company view its relative performance compared to electronics markets? - The company outperformed the electronics market in 2024, with growth in high-value subsegments driving performance [61][63] Question: What are the expectations for margin expansion this year? - Margin expansion is expected to continue, driven by product mix and ongoing raw material deflation [137] Question: Can you provide insights on the PCB market expectations? - The advanced PCB market is expected to grow faster than trailing edge boards, with the company positioned to outperform [96][98] Question: What is the outlook for the company's business in China? - The company had a good year in China, with expectations for continued growth driven by the electric vehicle market [163][165]

Financial Data and Key Metrics Changes - The company reported adjusted pretax income of $147 million and adjusted EBITDA of $363 million for 2024, despite facing oversupplied agricultural markets with low prices and limited volatility [9][17] - Net income attributable to the company was $45 million or $1.31 per diluted share, compared to adjusted net income of $55 million or $1.59 per diluted share in Q4 2023 [16] - Full year gross profit decreased by 7% to $694 million from $745 million in 2023, primarily due to lower ethanol margins [17] Business Line Data and Key Metrics Changes - The trade segment reported record fourth quarter adjusted pretax income of $54 million, up from $47 million in Q4 2023, driven by strong harvest execution and stable elevation margins [22] - Renewables generated fourth quarter pretax income of $16 million, down from $33 million in 2023, with EBITDA of $40 million compared to $73 million in the previous year [25][26] - Nutrient and industrial business reported a slight increase in adjusted pretax income to $3 million, while full year EBITDA decreased to $57 million from $62 million in 2023 [27] Market Data and Key Metrics Changes - The company noted that the agricultural businesses were lower due to soft industry fundamentals and limited grower engagement [13] - The effective tax rate for the quarter was 20%, with a full year rate of 15%, influenced by federal tax credits related to cellulosic ethanol production [18] Company Strategy and Development Direction - The company is focusing on integrating operations with Skyland Grain to optimize outcomes and enhance its presence in the North American agricultural supply chain [14][31] - A new segment reporting structure will be implemented in 2025 to streamline operational efficiency and enhance collaboration across trade and nutrient businesses [29] - The company anticipates an increase in US corn planted acres, which is expected to benefit its nutrient and agronomy business [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the agribusiness outlook despite challenges from lower grain prices and reduced farmer engagement [32] - The company plans to continue investing in projects aimed at reducing carbon intensity in ethanol production and expanding renewable diesel feedstock merchandising [37][39] - Management acknowledged uncertainty around the regulatory environment but remains committed to responsible decision-making to optimize shareholder value [39] Other Important Information - The company generated cash flow from operations of $100 million in Q4 2024, down from $122 million in Q4 2023, with a year-end cash position of $562 million [19][20] - Capital spending for the year was $149 million, with a long-term debt to EBITDA ratio of 1.8 times, below the target of less than 2.5 times [21] Q&A Session Summary Question: Can you elaborate on the investment opportunities around lowering carbon intensity? - Management indicated that the return profile of these investments is evolving and will be included in the capital expenditure environment as clarity increases [42][44] Question: What are the expected synergies from the consolidation of the NNI and Trade Group? - Management noted that while there are opportunities for consolidation, the primary goal is to create a unified solution for producers, enhancing operational efficiency [45][47] Question: How did the company manage to deliver solid results despite margin compression in ethanol? - Management attributed the strong performance to effective execution of their business model, focusing on controllable costs and maximizing core operations [49][51] Question: What are the potential impacts of trade tariffs on the business? - Management stated that the company is not significantly affected by major tariff swings due to its domestic focus, although some aspects may be impacted [56][58] Question: Can you provide an update on the integration of Skyland? - Management confirmed that the integration is progressing well, with expectations for a $30 to $40 million EBITDA contribution in 2025 [59][62] Question: How does the nutrient input requirement differ between corn and soybeans? - Management explained that corn requires substantially more nutrient input, leading to higher margins compared to other crops [68] Question: What is the outlook for the merchandising environment for corn in 2025? - Management noted that recent price appreciation has led to increased optimism among farmers, although some may have sold their crops prematurely [81][84]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $983 million, with annual recurring revenue (ARR) at $2.26 billion and earnings per share (EPS) at $0.89, all exceeding the midpoint of guidance [4][5] - On an as-adjusted basis, revenue increased by 9% for the quarter and 6% for the year, with ARR up 16% [5][26] - Gross margins improved to 71.7%, marking the first time exceeding 70%, with EBITDA margins ending at 27.2% for 2024 [5][9] Business Line Data and Key Metrics Changes - AECO segment reported 18% ARR growth for both the quarter and the year, with operating income at 31.2% [28] - Field Systems experienced a slight decline in revenue for the year but saw a 2% increase in the fourth quarter, with ARR growth at 21% [30][31] - Transportation and Logistics segment reported 8% growth in both revenue and ARR for the quarter and year, driven by the MAPS and Transporeon businesses [32] Market Data and Key Metrics Changes - North America remains the strongest market, particularly in data centers and energy sectors, with a healthy sentiment among customers [47][49] - The freight market remains challenging, but Transporeon achieved record bookings in both the fourth quarter and the year [14][98] Company Strategy and Development Direction - The company’s strategy, termed "Connect and Scale," focuses on digitizing and transforming work in construction, geospatial, and transportation industries, with a combined addressable market exceeding $70 billion [7][10] - The company aims to achieve $3 billion in ARR, $4 billion in revenue, and 30% EBITDA margins by 2027 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macro environment, noting strong hiring trends among customers as a catalyst for technology adoption [50] - The company anticipates continued growth in recurring revenue and is well-positioned to capitalize on future opportunities, particularly in AI and data-centric solutions [16][17] Other Important Information - The company has initiated a $1 billion share repurchase program and remains committed to executing its capital allocation strategy [20][22] - The divestiture of the mobility business was completed, and the company is focused on tuck-in acquisitions to enhance its offerings [19][21] Q&A Session Summary Question: Current macro environment and customer sentiment - Management noted that North America is performing well, particularly in data centers and energy markets, with healthy overall sentiment despite some regional differences [47][49] Question: Impact of tariffs on financials - Management indicated that the exposure to tariffs is minimal due to the shift towards software services, and contingency plans are in place [52][54] Question: 2025 guidance and growth expectations - Management expects about two-thirds of ARR growth to come from existing customers, with significant opportunities for cross-selling and up-selling [58][59] Question: AI and operational efficiency - Management sees potential for operational efficiencies through AI, particularly in R&D and customer support functions, but quantifying this impact remains challenging [60][64] Question: Unique data and product enhancements - Management highlighted the unique ability to connect physical and digital workflows, which positions the company well for future product innovations [69][72] Question: Federal government business impact - The federal government business is expected to be flat in 2025, with ongoing subscription conversions contributing to growth [78] Question: TC1 rollout and growth contribution - Management expressed confidence in the TC1 rollout across regions, with strong customer feedback and bookings performance [82][84] Question: Transporeon performance and future outlook - Transporeon achieved record bookings despite a challenging freight market, and management expects strong performance when the market recovers [98][124] Question: Share repurchase plan and M&A impact - Management plans to initiate repurchases in Q1 and Q2, with flexibility to pursue M&A opportunities without compromising share repurchase commitments [131][133]

Karyopharm Therapeutics Inc. (NASDAQ:KPTI) Q4 2024 Earnings Call February 19, 2025 8:00 AM ET Company Participants Brendan Strong - SVP, IR Richard Paulson - President and CEO Reshma Rangwala - CMO & Head of Research Sohanya Cheng - CCO & Head of Business Development Lori Macomber - EVP, CFO, & Treasurer Conference Call Participants Colleen Kusy - Baird Maury Raycroft - Jefferies Unidentified Analyst - Barclays Jonathan Chang - Leerink Partners Unidentified Analyst - RBC Capital Markets Ed White - H.C. Wain ...

Financial Data and Key Metrics Changes - The underlying net income for 2024 increased by 14% year-on-year to approximately $300 million [14][63] - The core combined ratio for 2024 improved to 91%, a 2.4 percentage point improvement compared to the previous year [15][63] - The underlying return on equity for 2024 was 14.6%, at the upper end of the target range of 12% to 15% [16][63] - The diluted book value per share grew by 9.8% for the full year 2024 [63] Business Line Data and Key Metrics Changes - Continuing lines gross premiums written grew by 21% in the fourth quarter, with net premiums written increasing by 28% [19][54] - For the full year, continuing lines growth was 10%, with insurance and services growing by 14% and reinsurance by 5% [21][67] - The accident and health segment saw double-digit growth, while casualty remained roughly flat [20][76] Market Data and Key Metrics Changes - The property book grew by 25% in 2024, benefiting from the hard market in US catastrophe reinsurance [70] - The specialty segment experienced a gross premium written increase of 38% in 2024 [73] - The reinsurance segment saw a 5% increase in premiums, with notable growth in Bermuda property and specialty lines [68] Company Strategy and Development Direction - The company aims to focus on improving business performance following the completion of its major reshaping efforts [10][96] - There is a commitment to maintaining underwriting discipline and targeting growth in areas that align with profitability and risk targets [20][76] - The company is rationalizing its equity stakes in MGAs, reducing from 36 to 20, to focus on core underwriting capabilities [35][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong operational performance and the effectiveness of reshaping actions taken [9][45] - The company anticipates that the impact of previous underwriting decisions will diminish going forward, allowing for improved performance [21][63] - Management highlighted the importance of supporting customers affected by recent catastrophic events, such as the California wildfires [25][26] Other Important Information - The company returned over $1 billion to investors in 2024, significantly improving its balance sheet and structure [13][45] - The CMIG transaction is expected to be accretive to book value by 4% and increase earnings per share by over 20% [12][44] - The company has maintained a strong financial position with a BSCR capital ratio of 214% and a debt to capital ratio of 24.8% [44][91] Q&A Session Summary Question: What are the expectations for future premium growth? - Management expects headline premium growth in 2025 to be similar to the continuing lines premium growth in 2024, despite the impact of runoff being insignificant [67] Question: How is the company addressing the recent catastrophic losses? - The company has implemented retrocession protection to mitigate earnings volatility and is committed to supporting affected customers [28][26] Question: What is the outlook for the MGA strategy? - The company is focused on strengthening its MGA distribution strategy and has entered into 19 new or expanding partnerships in 2024 [32]

Financial Data and Key Metrics Changes - For fiscal year 2024, total revenue exceeded $6.7 billion for the first time, representing a 24% increase from the prior year and a 22% organic growth [15][44] - Adjusted EBITDA for the full year was $605 million, a 30% increase from 2023, with an adjusted EBITDA margin of 9%, up 50 basis points [44][60] - The company achieved a record contract awards of $7 billion, a 17% increase over 2023, with a win rate of 71%, the highest in company history [16][17] Business Line Data and Key Metrics Changes - Federal Solutions segment revenue increased by 33% year-over-year, driven by organic growth of 30% and contributions from acquisitions [48] - Critical Infrastructure segment revenue increased by 13% for the full year, primarily organic growth, with adjusted EBITDA increasing by 8% [52][53] - In Q4 2024, Federal Solutions revenue increased by 19%, while Critical Infrastructure revenue increased by 12% [46][50] Market Data and Key Metrics Changes - The company reported strong growth in critical infrastructure protection and cyber markets, with growth rates of 31% and 24% respectively in Q4 2024 [40] - The backlog at the end of Q4 totaled $8.9 billion, up 4% from the previous year, with a funded backlog at 66%, the highest since the IPO [59][121] Company Strategy and Development Direction - The company is focused on high-growth areas such as artificial intelligence, cyber, and environmental remediation, with plans to continue strategic acquisitions [15][29] - The company aims to leverage its unique portfolio in federal and critical infrastructure markets, aligning with government priorities and increasing infrastructure spending [11][33] - The strategy includes moving up the value chain and differentiating with advanced technology and digital enablement [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong alignment with government priorities and ongoing global infrastructure spending [67] - The company anticipates organic growth in 2025, despite some expected lower volumes on certain contracts, with guidance for revenue between $7.0 billion and $7.5 billion [59][60] - Management highlighted the importance of maintaining a strong balance sheet to support strategic investments and acquisitions [65] Other Important Information - The company completed two significant acquisitions in 2024, enhancing capabilities in federal solutions and critical infrastructure [26][27] - Parsons was recognized as one of America's most trusted companies by Forbes, and its Kicking Horse Canyon project received a prestigious award [30] Q&A Session Summary Question: Update on confidential customer and project - Management confirmed that the option year two has been exercised, valued at $242 million, but noted a related program has been paused, impacting completion [70][72] Question: Procurement environment and contract awards - Management indicated a slower procurement environment but noted an increase in extensions and ceiling increases, with less than 5% of business up for recompete [78][79] Question: Guidance for 2025 and impact of confidential contract - Guidance includes the full negotiated amount for the option year, with potential for adjustments based on related program developments [116][82] Question: Role with FAA and current projects - Management highlighted ongoing support for the FAA with a significant contract, emphasizing opportunities for modernization and safety improvements [105][108] Question: Clarification on margin expectations - Management discussed expectations for margin progression, indicating some compression in federal business but growth in critical infrastructure margins [130]

Financial Data and Key Metrics Changes - Consolidated delivered sales reached $522 million, up 4% year-over-year [8][36] - Non-GAAP operating margin expanded by 20 basis points to 6.8% [9][36] - GAAP diluted EPS was $0.68, compared to $0.66 in the prior year [37] Business Segment Data and Key Metrics Changes - Retail segment sales increased by 11% to $228 million, driven by same-store sales growth [9][38] - Wholesale segment delivered sales grew by 2% to $363 million, supported by the North America La-Z-Boy brand [40] - Joybird reported delivered sales of $37 million, up 9% year-over-year, achieving breakeven operating profit [41][28] Market Data and Key Metrics Changes - Total written sales for the company-owned retail segment increased by 15% year-over-year [13] - Written same-store sales for the entire La-Z-Boy Furniture Galleries network increased by 5% [14] - The furniture and home furnishing industry grew by 5% during the fiscal third quarter [15] Company Strategy and Development Direction - The Century Vision strategy aims to drive top-line growth at double the market rate and maintain double-digit operating margins [17][50] - The company plans to expand its La-Z-Boy Furniture Galleries network to over 400 stores in the coming years [19] - A focus on enhancing brand reach through strategic partnerships and expanding distribution channels is emphasized [22][76] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a volatile operating environment but remains optimistic about growth opportunities despite industry challenges [11][33] - The company expects fourth-quarter delivered sales in the range of $545 million and non-GAAP operating margin between 8.5% and 9.5% [50] - Management is monitoring the evolving global tariff and trade environment while planning for various scenarios [51][117] Other Important Information - La-Z-Boy was named to Forbes' list of America's best large employers for 2025 [56] - The company has a strong balance sheet with $315 million in cash and no externally funded debt [46] Q&A Session Summary Question: Can you provide insights on the trends throughout the quarter? - Management noted that strength was strongest during the holiday period, with overall year-on-year strength across all three months of the quarter [62] Question: What are the expectations for operating margins in the fourth quarter? - Management highlighted that core North America La-Z-Boy wholesale business has shown margin expansion, while challenges remain in the international business [68][70] Question: What is the status of strategic partnerships? - Management confirmed ongoing investments in comfort studios and emphasized the importance of existing partnerships while exploring new opportunities [74][78] Question: How is the core wholesale segment performing? - Management expressed satisfaction with progress in the core North America wholesale business, noting improvements in supply chain efficiency [85] Question: What is the outlook for Joybird? - Management indicated that Joybird is positioned for growth with plans to open three to four new stores next year, while maintaining financial discipline [106]

Perion Network Ltd. (NASDAQ:PERI) Q4 2024 Earnings Conference Call February 19, 2025 8:30 AM ET Company Participants Tal Jacobson - Chief Executive Officer Elad Tzubery - Chief Financial Officer Conference Call Participants Andrew Marok - Raymond James Jason Helfstein - Oppenheimer Eric Martinuzzi - Lake Street Laura Martin - Needham & Co. Jeff Martin - ROTH Capital Operator Hello, everybody, and welcome to the Perion Network Ltd. fourth quarter and full year 2024 earnings conference call. Today's conferenc ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $103.7 million, up 13% year-over-year, accelerating from 8% growth in Q3 2024 [25] - Adjusted EBITDA for Q4 was $20.7 million, with an adjusted EBITDA margin of 20%, an improvement of 240 basis points from a year earlier [25][26] - For the full year 2024, Marketplace revenue was $303.1 million, with a 27.6% take rate [28] - Services revenue was $88.4 million, representing year-over-year growth of 62% and contributing 23% to total revenue [30] Business Line Data and Key Metrics Changes - Marketplace revenue growth is expected to be muted in 2025 due to macroeconomic conditions, but larger projects are showing robust growth [29] - Services revenue is anticipated to continue growing at a healthy double-digit rate, with contributions to total revenue expected to exceed 30% in 2025 [31] Market Data and Key Metrics Changes - The number of annual active buyers was 3.6 million, with an annual spend per buyer of $302 [28] - Buyers spending over $10,000 showed resilient growth, while overall active buyers did not grow due to macro headwinds [28] Company Strategy and Development Direction - The company aims to pursue quality of revenue and upmarket opportunities in the Marketplace segment while expanding offerings in the Services segment [8] - Fiverr Go was launched as an open platform for personalized AI tools, designed to empower freelancers and reshape the power dynamic between creators and AI [13][14] - The Freelancer Equity Program was introduced to give top-performing freelancers equity shares in Fiverr, fostering loyalty and engagement [22][114] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for 2025, despite macroeconomic challenges [7][26] - The company believes that a macro rebound will eventually benefit Marketplace revenue growth [29] - Management highlighted the importance of maintaining a talent-focused approach and empowering freelancers amid economic pressures [10][12] Other Important Information - Fiverr hosted about 100 community events in 2024, with over 100,000 registrations, emphasizing its commitment to the freelancer community [11] - The company is focused on optimizing the quality of revenue and expanding into larger buyers and complex projects [26] Q&A Session Summary Question: How will Fiverr Go help conversion and what is the impact on margins? - Fiverr Go is designed to enhance conversion by providing instant responses to customer inquiries, which is crucial for conversion rates [37] - Investments in Fiverr Go will continue, but guidance reflects expected improvements in EBITDA despite these investments [42] Question: Will Fiverr Go expand to all categories? - Currently, Fiverr Go operates in 60 categories, with plans to expand further as technology develops [48][50] Question: What drives higher spend per buyer in newer cohorts? - Factors include quality improvements, complex projects handled by Dynamic Matching, and a focus on high-value buyers [56] Question: How does Fiverr Go impact pricing and deflationary aspects? - Fiverr Go allows freelancers to maintain control over pricing, ensuring that human involvement remains integral to the creative process [102] Question: What is the outlook for Services revenue and advertising? - Services revenue is expected to grow significantly, with advertising products evolving and providing additional monetization opportunities [100] Question: Is there seasonality in Services revenue? - Services revenue is expected to exhibit flat behavior throughout the year, with no significant seasonality identified [107]