Rubrik, Inc. (NYSE:RBRK) Q4 2025 Earnings Conference Call March 13, 2025 5:00 PM ET Company Participants Melissa Franchi ??? Vice President, Head-Investor Relations Bipul Sinha ??? Co-Founder, Chairman and Chief Executive Officer Kiran Choudary ??? Chief Financial Officer Conference Call Participants Saket Kalia ??? Barclays Kash Rangan ??? Goldman Sachs Fatima Boolani ??? Citigroup John DiFucci ??? Guggenheim Securities Andrew Nowinski ??? Wells Fargo Brad Zelnick ??? Deutsche Bank Eric Heath ??? KeyBanc C ...

Financial Data and Key Metrics Changes - For Q4 2024, the company's consolidated revenue was $137.8 million, a decrease of 4% from the previous year's fourth quarter. Adjusted EBITDA was $21.1 million, down 17% [5][6]. - The net debt to EBITDA ratio at the end of Q4 was 5.5 times, and 6.9 times on a lease-adjusted basis [28]. Business Line Data and Key Metrics Changes - U.S. operations saw a revenue decline of 3% and EBITDA down 8%. Retail and low-end customer segments remained weak due to macroeconomic factors [6][7]. - The new land-based facility in Caruthersville, Missouri, opened on November 1, 2024, with revenue and EBITDA up 27% and 32% respectively in the four months since opening [8][12]. - The Century Casino Hotel Cape Girardeau experienced an 11% increase in revenue and a 7% increase in EBITDA, driven by the new hotel and solid food and beverage sales [14][16]. Market Data and Key Metrics Changes - In Colorado, carded revenue grew by 12%, while uncarded revenue decreased by 30%, leading to a 7% overall revenue decline [18]. - The East segment, including Mountaineer Casino and Rocky Gap Casino Resort, faced a 7% revenue decline and a 29% drop in EBITDA, primarily due to lower-end customer performance [20][21]. Company Strategy and Development Direction - The company is focusing on operational discipline and efficiency improvements, with a clear path to higher EBITDA for 2025 and beyond [32][33]. - There are plans to finalize partnership agreements for sports betting in Missouri, expected to deliver incremental high-margin EBITDA [17][34]. Management's Comments on Operating Environment and Future Outlook - Management noted that the lower-end consumer segment remains a significant concern, impacting overall revenue forecasts [38][39]. - The company anticipates significant EBITDA and cash flow improvements in 2025, driven by recent growth capital initiatives and a reduction in capital expenditures [31][34]. Other Important Information - The company has no significant capital expenditures planned for 2025, expecting to spend just €4 million on growth projects and €14 million on maintenance CapEx [30][31]. - The company is considering divesting non-U.S. properties, particularly in Poland and Canada, due to lower contributions to EBITDA and cash flow [27][95]. Q&A Session Summary Question: What is the main driver of the lower estimates for 2025? - Management indicated that the lower-end consumer weakness is the primary driver of the lower estimates, while mid and upper tiers are performing well [38]. Question: How is the revenue decline at the Nugget being addressed? - Management noted that the decline in casino revenue is closely tied to hotel revenue, and efforts are being made to revitalize the property and increase conference business [44][45]. Question: What impact will the Alberta Gaming Commission's suspension of gaming machines have? - Management does not expect any meaningful negative impact, estimating it to be around half a percent [49]. Question: What is the strategy for online gaming and sports betting? - The company plans to partner with third parties for online gaming and sports betting, focusing on revenue sharing models [82]. Question: Is there a consideration for stock buybacks? - Management expressed interest in stock buybacks but is restricted by insider laws and blackout periods [108].

Financial Data and Key Metrics Changes - CION reported a quarterly net investment income of $0.35 per share for Q4 2024, down from $0.40 per share in Q3 2024, and a full-year net investment income of $1.79 per share, compared to $1.92 per share in 2023 [9][37][38] - The net asset value (NAV) decreased to $15.43 per share from $15.73 per share in Q3 2024, primarily due to fair value marks in the equity portfolio and the distribution of a special dividend [11][41] - Total assets were approximately $1.9 billion, with total equity of $821 million and total debt outstanding of $1.1 billion, resulting in a net debt-to-equity ratio of 1.27, up from 1.18 in Q3 2024 [39][40] Business Line Data and Key Metrics Changes - The company maintained a diverse revenue base, with net investment income reflecting interest income from core lending and accretion from transaction fees [10] - The weighted average yield on funded first lien debt investments was SOFR plus 7% for the quarter, with direct investments yielding approximately SOFR plus 6.1% [22] - Approximately 96% of new investment commitments were in first lien loans, with total new investment commitments of $106 million across 5 new and 15 existing portfolio companies [27][40] Market Data and Key Metrics Changes - The competitive landscape remains challenging, with historic capital inflows leading to lower coupon spreads and easing credit terms in the leveraged loan markets [19][20] - The company observed a significant increase in PIK income, primarily driven by the structured PIK term loan investment in Homer City Power [23] - Nonaccruals decreased from 1.85% of fair value in Q3 to 1.41% in Q4, indicating improved credit performance [32] Company Strategy and Development Direction - CION continues to focus on first lien investing at the top of the capital structure, utilizing secured yield enhancement provisions to drive yields [21] - The company remains selective in its investment approach, passing on a historically higher percentage of potential investments based on credit and pricing considerations [18] - The strategic transformation of David's Bridal into a more asset-light, digitally driven business model is expected to enhance market power in the broader wedding industry [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the credit performance of the portfolio, particularly as base rates remain elevated [12] - The company anticipates that the impact of balance sheet repositioning will be mitigated as it redeploys into its deal pipeline [11] - Management highlighted the importance of maintaining a flexible funding structure to adapt to market conditions in 2025 [16] Other Important Information - CION completed a public baby bond offering, raising $172.5 million in new unsecured fixed-rate notes due 2029 [44] - The company declared total distributions of $1.52 per share for 2024, with a trailing 12-month distribution yield of 9.6% based on average NAV [46] Q&A Session Summary Question: Can you provide details on David's Bridal's add-on investment this quarter? - The add-on was primarily nonrecurring, related to the first full merchandising season after emerging from bankruptcy, and included investments in a new digital marketplace [50][52] Question: Should we expect similar fourth-quarter investments and paydowns throughout the year? - Future activity will likely see significant paydowns on the revolver side, with a potential waterfall effect to the term loan later [54] Question: What is the status of the Homer City investment? - Significant redevelopment is underway, transitioning from a coal plant to a gas plant, with potential alignment with data center developments [56] Question: Can you provide insight into the competition for pricing and structure? - The company expects a continued trend of 60% add-on investments to existing portfolio companies, with a competitive market environment persisting [58][60] Question: Have you analyzed potential tariff impacts on portfolio companies? - The company actively discusses tariff impacts with portfolio companies, noting efforts to diversify production away from China [66][68]

Financial Data and Key Metrics Changes - Q4 revenue was $776 million, up 9% year-over-year, while fiscal 2025 revenue reached $3 billion, an 8% increase year-over-year [11][37] - Q4 billings were $923 million, up 11% year-over-year, and full-year fiscal 2025 billings increased by 7% year-over-year [37] - Non-GAAP operating margins were 29% in Q4 and 30% for fiscal 2025, both significant increases from fiscal 2024 [12][49] - Free cash flow for Q4 was $280 million, a 36% margin, and for fiscal 2025, it was $920 million, a 31% margin [51][52] Business Line Data and Key Metrics Changes - The introduction of Intelligent Agreement Management (IAM) has shown strong momentum, with IAM representing a high single-digit percentage of in-quarter deal volume for the direct channel [18][19] - Dollar net retention rate improved to 101% in Q4, up from 100% in Q3 and 98% in Q4 of fiscal 2024 [40] - Customer growth was 10% year-over-year, approaching 1.7 million customers [42] Market Data and Key Metrics Changes - International revenue in Q4 represented 28% of total revenue and grew 12% year-over-year [46] - Digital self-service revenue growth accelerated for the second consecutive quarter, reflecting improvements in self-service capabilities [26] - The number of large customers spending over $300,000 annually increased to 1,131 in Q4, marking the strongest quarter for large customer growth in two years [43] Company Strategy and Development Direction - The company aims to establish itself as the leading agreement platform through three strategic pillars: accelerating product innovation, strengthening omnichannel go-to-market capabilities, and increasing operating efficiency [10][36] - The focus for fiscal 2026 includes increasing value delivered to customers and expanding IAM's adoption across various customer segments [12][29] - The company plans to invest in self-service channels to enhance customer experience and drive growth [30][44] Management's Comments on Operating Environment and Future Outlook - Management noted that there have been no material changes in trends regarding envelope volume, indicating stability in the core e-signature business [87] - The company remains optimistic about the enterprise opportunity for IAM, with early signs of strong customer demand [74][76] - Management expects dollar net retention to be flat in Q1 of 2026 but anticipates moderate improvement throughout the year [40][114] Other Important Information - Non-GAAP gross margin for Q4 was 82.3%, slightly down from the prior year, impacted by ongoing cloud infrastructure migration [48] - The company repurchased $162 million of stock in Q4 and a total of $684 million in fiscal 2025, utilizing approximately 75% of annual free cash flow [55] - GAAP diluted EPS for Q4 was $0.39, compared to $0.13 last year, while non-GAAP diluted EPS was $0.86, up from $0.76 [57] Q&A Session Summary Question: Early reception of IAM in the enterprise space - Management reported encouraging early signs in both enterprise and international markets, with a strong value proposition for larger companies [74][76] Question: Understanding revenue growth guidance in relation to billings acceleration - Management explained that revenue growth lags behind billings due to the average contract duration, and they expect to see revenue acceleration as IAM ramps up [81][82] Question: Current macro environment impact on activity and expansion deals - Management indicated no material changes in envelope volume trends and noted diversification across sectors helps mitigate risks [88] Question: Preparedness of the sales team for solution sales - Management highlighted successful sales cycles in the SMB segment and ongoing training to prepare for more complex enterprise sales [93][96] Question: Opportunity for IAM at accounts - Management emphasized significant expansion opportunities across various functional areas within enterprises, indicating a strong potential uplift in customer spend [111][112] Question: Net dollar retention expectations - Management clarified that while they expect flat retention in Q1, they foresee gradual improvement throughout the year due to ongoing efforts [114] Question: Changes in the sales team and go-to-market strategy - Management characterized the changes as significant but manageable, with a focus on preparing the sales team for enterprise opportunities [121][122]

Financial Data and Key Metrics Changes - AlTi Global, Inc. generated $207 million in revenues for 2024, with a significant increase in recurring management fees to 96% from 77% in 2023 [10][38] - Consolidated adjusted EBITDA was $17 million for the year, while the core wealth management and capital solutions segment delivered adjusted EBITDA of $37 million with a 19% margin [11][40] - Consolidated operating expenses decreased by $54 million to $292 million compared to 2023, primarily due to reductions in compensation expenses and professional fees [41][42] Business Line Data and Key Metrics Changes - In the core wealth and capital solutions segment, revenues were $198 million for the year and $51 million in Q4, with management fees growing 13% in Q4 [39] - Assets under management and advisement grew 15% year over year, driven by the inclusion of East End and Envoy, along with solid portfolio performance [10][39] Market Data and Key Metrics Changes - The ultrahigh net worth segment is identified as the fastest-growing market in wealth management, with a $102 trillion addressable market growing at 7% compounding [17] - The company has made significant strides in expanding its international presence, particularly in Germany, which is the third-largest ultrahigh net worth market in the world [23][25] Company Strategy and Development Direction - The company aims to become the world's leading independent ultrahigh net worth wealth management firm, focusing on alternatives and impacts [6] - Strategic partnerships, such as with AllianzX and Constellation Wealth Capital, are pivotal for growth and expanding service offerings [12][14] - The company is actively pursuing strategic acquisitions and divestitures to sharpen its focus on core recurring revenue businesses [28][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its strategy and drive profitable growth, particularly through cost optimization initiatives [36][47] - The company is at a critical inflection point, poised for significant profitable growth and value creation in 2025 and beyond [7][8] Other Important Information - The company has implemented zero-based budgeting (ZBB) to streamline costs and maximize resource efficiency [33][43] - The company has no bank debt on its balance sheet as of year-end, providing flexibility for future growth initiatives [45] Q&A Session Summary Question: Could you talk a little bit more about the acquisition in Germany and why it makes strategic sense? - Management highlighted Germany as a strategic market due to its size and the fit of Contura as a premier independent operator [52] Question: Following the deal in Germany, can you talk about where you are on deploying capital? - Management indicated they have $65 million available for acquisitions and an active pipeline for organic growth [55] Question: Is there anything else that we should expect from the strategic review on real estate? - Management confirmed that the review was complete and the divestment process is in the final stages [57][59] Question: Could you talk a little about the normalized operating expenses? - Management stated that expenses are expected to be lower going forward due to the comprehensive review of all expenses under the ZBB methodology [62][64] Question: What are you seeing on the M&A, arbitrage, pipeline? - Management noted that the regulatory environment for M&A has improved, leading to a constructive outlook for increased M&A activity [67]

Karat Packaging, Inc. (NASDAQ:KRT) Q4 2024 Earnings Conference Call March 13, 2025 5:00 PM ET Company Participants Roger Pondel - PondelWilkinson Inc., Investor Relations Alan Yu - Chairman and Chief Executive Officer Jian Guo - Chief Financial Officer Conference Call Participants Ryan Meyers - Lake Street Capital Markets Jake Bartlett - Truist Securities Brian Butler - Stifel Michael Francis - William Blair Roger Pondell Good afternoon, everyone. Welcome to Karat Packaging's 2024 fourth quarter conference ...

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA loss of CAD 60.3 million for Q4 2024, with cash used in operating activities amounting to CAD 76.9 million [14] - Total shipments for Q4 2024 reached 549,000 tons, a 6.3% increase compared to the same quarter last year, while net sales realization averaged CAD 976 per ton, down from CAD 1,079 per ton in the prior year [15] - For the full year 2024, the company shipped 2 million net tons, down from 2.1 million net tons in the previous year, with net sales realizations averaging CAD 1,107 per ton, a decrease of 5.6% [18] - Steel revenue for Q4 2024 was CAD 536 million, a decline of 3.8% year-over-year, while the cost per ton of steel products sold averaged CAD 1,032, similar to the prior year [16][19] Business Line Data and Key Metrics Changes - Plate shipments for Q4 2024 reached approximately 82,000 tons, up from 73,000 tons in Q3 2024, with expectations for Q1 2025 plate production to be directionally higher [5] - The company is dynamically adjusting its product mix between plate and coil products based on market conditions and contractual obligations, focusing on higher-margin products [6] Market Data and Key Metrics Changes - The company noted that the Canadian market is currently oversupplied with coil and undersupplied with plate, which may lead to price increases for plate products [37] - The implementation of tariffs on Canadian steel and aluminum imports has introduced uncertainty into the North American steel market, but the company expects a rational dialogue to restore normal trade [11] Company Strategy and Development Direction - The company is focused on completing its electric arc furnace (EAF) project, with first steel production expected in April 2025, which is anticipated to enhance operational efficiency and cost structure [8][25] - The transition to EAF steelmaking is seen as a long-term strategy to strengthen the company's position in the market and improve its ability to navigate uncertainties [11][25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenging market conditions due to tariff uncertainty, soft demand, and other macroeconomic factors affecting customer behavior [4] - Despite these challenges, the company remains optimistic about the upcoming EAF operations and the potential for increased production and market share in the plate segment [25][72] Other Important Information - The cumulative investment for the EAF project was CAD 740 million as of December 31, 2024, with expectations to complete the project within 5% of the upper budget range [10] - The company expects to release approximately CAD 100 million of working capital from March 2024 to March 2025 [17] Q&A Session Summary Question: Clarification on the Blast Furnace outage duration and costs - The outage lasted a couple of days to a week due to extreme weather conditions, with no significant costs involved [31][32] Question: Impact of tariffs on EBITDA generation - The company indicated that with current pricing, it could break even or generate a small profit despite the 25% tariff on shipments to the US [34][35] Question: Canadian sheet prices and potential oversupply - The Canadian market is currently oversupplied with coil and undersupplied with plate, which may lead to price increases for plate products [37] Question: Mitigation strategies in response to tariffs - The company is focused on cost reduction initiatives and transitioning to EAF production as a primary strategy to lower costs [45][46] Question: Expected insurance payout and timing - The company expects around CAD 100 million from insurance, with CAD 20 to CAD 25 million anticipated in the next month [52][54] Question: Volume expectations for 2025 - The company anticipates total shipments for the year to be between 2.1 million to 2.2 million tons, with a focus on increasing plate production [98]

Financial Data and Key Metrics Changes - The company reported a consolidated operating income of $1.5 million in Q4 2024, down from $4.6 million in Q4 2023 [21] - Adjusted EBITDA decreased to $2.1 million from $4.9 million year-over-year [21] - The company recorded a net loss of $200,000 or one cent per diluted share, compared to net income of $4.9 million or thirteen cents per diluted share in the same quarter last year [22] - Stockholders' equity increased to $65.2 million as of December 31, 2024, up from $61.1 million a year earlier [23] - The company ended the year with no long-term debt and a cash balance bolstered by operations and investment activities [24] Business Line Data and Key Metrics Changes - The industrial assets division reported operating income of $800,000 in Q4 2024, down from $1.6 million in the prior year [16] - The financial assets division reported total operating income of $1.9 million, while the brokerage business recorded $1.7 million, down from $2.7 million in Q4 2023 [18] Market Data and Key Metrics Changes - The company noted a significant increase in defaults and charge-offs, indicating a robust market for auctioneers in the coming months [10][13] - The demand for used equipment is at an all-time high due to supply chain tightening and potential tariff impacts on new equipment [12] Company Strategy and Development Direction - The company is focusing on expanding its warehouse and staffing to meet increased demand and asset flow [8] - M&A efforts are producing multiple prospects, with a focus on capitalizing on opportunities in the current economic environment [9][26] - The company is optimistic about the auction market in 2025, anticipating increased activity due to economic pressures leading to more defaults and asset liquidations [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges and capitalize on market opportunities [14] - The CEO highlighted the importance of maintaining profitability and a strong balance sheet to seize new opportunities [27] - Management acknowledged the challenges faced in 2024 but remains positive about the future, citing a strong pipeline of opportunities [28] Other Important Information - The company repurchased approximately 1.3 million shares in the open market during fiscal 2024, with $3 million remaining under the share repurchase program [25] - A new mortgage loan agreement for $4.1 million was entered into for the company's new corporate headquarters, which will provide expanded office and warehouse space [26] Q&A Session Summary Question: Did you increase any more provisions on the loan book? - Management stated that they have not increased or substantially decreased the reserve against the loan book, maintaining a consistent reserve level [31] Question: What is needed to grow the brokerage business? - The CEO indicated that an increase in defaults would lead to more charge-offs, which would benefit the brokerage business in the future [39] Question: What is the capacity to serve the market now? - The CEO mentioned that the company has expanded its capacity significantly, allowing for more asset relocation and acquisitions [49] Question: Are you able to take advantage of higher interest rates on cash balances? - Management confirmed that they are utilizing short-term vehicles to earn interest income, but are primarily focused on deploying cash into the business [111] Question: What is the current status of non-accrual loans? - Management disclosed that the amount in non-accrual status is approximately $22 million to $23 million [75] Question: How is management compensation structured? - Management compensation is variable and based on performance, with bonuses tied to the company's profitability [89]

HeartBeam, Inc. (NASDAQ:BEAT) Q4 2024 Results Conference Call March 13, 2025 4:30 PM ET Company Participants Rob Eno - Chief Executive Officer Tim Cruickshank - Chief Financial Officer Operator Greetings, and welcome to the HeartBeam, Inc. Fourth Quarter and Full Year 2024 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. Before we begin the for ...

Financial Data and Key Metrics Changes - North America system-wide sales reached $465 million, up 21% year over year [10] - North America quarterly run rate average unit volumes increased to $668,000, up 9% year over year [40] - Total members at quarter end stood at 813,000, up 15% year over year [10] - Adjusted EBITDA for 2024 was $116.2 million, up 16% compared to the prior year [58] - Net loss for the fourth quarter was $62.5 million, compared to a net loss of $12.3 million in the prior year [55] Business Line Data and Key Metrics Changes - Franchise revenue for the quarter was $45.3 million, up 17% year over year [43] - Equipment revenue declined by 22% year over year to $12.7 million [44] - Merchandise revenue was down 34% year over year to $6.1 million [45] - Franchise marketing fund revenue increased by 23% year over year to $9.2 million [46] Market Data and Key Metrics Changes - System-wide sales for 2024 increased approximately 23% to $1.7 billion from $1.4 billion in 2023 [40] - Same-store sales for the full year were 7% [40] - The volume of licenses sold was lower due to a pause in sales while updating franchise disclosure documents [39] Company Strategy and Development Direction - The company is focused on building a senior management team to scale operations profitably [13] - Plans to expand international footprint, particularly for Club Pilates, with leadership in Europe and Asia [21] - Emphasis on innovation and data-driven decision-making to enhance member experience and operational efficiency [24][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the business, including operational issues and a need for structural changes [26][29] - 2025 is viewed as a year for foundation building, with expectations for growth to reaccelerate in subsequent years [30] - The company aims to improve franchisee profitability and is reviewing its brand portfolio for better capital allocation [31][112] Other Important Information - The company restated 2023 financial statements due to accounting errors related to inventory and compliance [33][34] - Total long-term debt increased to $352.4 million as of December 31, 2024, from $328.5 million the previous year [68] Q&A Session Summary Question: Can you help us understand the comp performance that is embedded in the 2025 system sales guidance? - The guidance assumes mid single-digit comp growth, with Club Pilates historically performing better [79] Question: Can you provide an update on the franchise recruiting process? - A new Chief Development Officer has been hired, and functions are now unified under one leadership [81] Question: What is your assessment of StretchLab in terms of negative comps? - Management is actively reviewing StretchLab's model and exploring ways to improve franchisee communication and marketing [91][95] Question: Can you clarify thoughts around studio closures? - The company is taking a conservative approach to underperforming studios, aiming for a healthier system [103] Question: What are the expectations for international expansion? - The company plans to have on-the-ground leadership in Europe and Asia to support franchise operations [99]