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| Statement |
|---|
| federal budget approval, recent bookings and the Puerto Rico selection bolster our confidence in approaching fiscal 2022 levels of hardware revenue, despite the exceptional low performance in the first quarter |
| Recent wins and the continuing deal activity and pipeline expansion give us greater confidence in our second-half of '24 and our fiscal 2025 outlook |
| So, if you have that plus our normal business, you're going to have significant absorption and gross margins on the balance of the business, balance of the base of the factory will enjoy the improvement, the improvement to the contribution margin from normal activities |
| Genasys had the highest score, beating the competition in all evaluation categories |
| It really should be apparent to everyone that the Genasys Protect platform, that includes both software and hardware, has an enormous potential |
| In 2023, we successfully grew our recurring software revenues each quarter |
| On a more positive note, software gross margins improved nearly 15 percentage points year-over-year |
| Recurring software revenue grew 85% year-over-year |
| Our Software business continues to gain momentum and build sale |
| And as I said, the base business will also benefit from that increased absorption |
| And to reiterate, our recurring software revenues were up 34% sequentially and nearly 85% year-over-year |
| In the first quarter of fiscal 2024, that growth accelerated to 85% year-over-year |
| The Ladris piece, as I mentioned a moment ago, we can have a pretty good uptick in both ARR and revenue from that, as I mentioned the 390k just for one county |
| And as a result, ARR for our CONNECT business grew nearly 18% sequentially in the first quarter as part of Genasys Protect |
| federal budget is approved in the March time frame, we expect to be profitable on our adjusted EBITDA basis in the second-half of 2024 |
| So, the cross-selling opportunity is clearly there, and we've achieved it |
| Unchanged from our outlook in December, we are confident that the software revenues for fiscal 2024 will at least double over fiscal 2023 |
| And we remain optimistic for the year, with an outlook unchanged from our prior conference call |
| Coming into this year, we had exceptional low hardware backlog |
| Similarly, we are getting significant leverage from our partnership with Ladris, which provides our Traffic AI solution |
| As Richard mentioned, we continue to expect software revenues to at least double in fiscal 2024, and hardware revenues should rebound close to fiscal 2022 levels |
| However, this puts us in a different position in the critical infrastructure protection marketplace, that there are dam projects all around the world, there are dam project here in San Diego, there are dam projects in South America and Europe that we are chasing, not to the size of Puerto Rico, but it will certainly give us great credentials and a calling card to further the CIP kind of vertical |
| We continue to expect adjusted EBITDA loss to improve in fiscal 2024 and fiscal 2023 |
| And we are also seeing new and growing interest for our software solutions as well |
| As compared to the same prior year period, total software revenue increased 57% to $1.4 million |
| Our engagements are getting larger, but they're also becoming more comprehensive as the advantages of our platform approach became more evident |
| Synergies from the acquisition of Evertel are beginning to be realized |
| Puerto Rico is a Genasys Protect win |
| In fact, it's almost double what we booked in Q1 of '23 versus '24 |
| The strategic vision of Genasys Protect is being realized |
| Statement |
|---|
| The drop in gross profit was attributable to lower hardware revenue in this year's quarter and the related reduction in overhead absorption |
| Gross profit margin was 34% in the fiscal first quarter, a decline of 12 percentage points or $3.4 million in the prior year period |
| Adjusted EBITDA, which excludes non-cash stock compensation, was a negative $6.1 million, compared to last year's negative $2.4 million |
| The year-over-year decline in adjusted EBITDA was due to the lower hardware revenues and subsequent reduced overhead absorption |
| Revenues for the first quarter of this fiscal year for $4.4 million, a decrease of 58% over the prior year's record first quarter revenue |
| More than offsetting that growth, hardware revenue decreased 72% to $2.9 million |
| On a full year, we continue to expect to report a negative adjusted EBITDA, though improved quite a bit from fiscal 2023 |
| Historically, hardware bookings in Q1 is the lowest quarter |
| government was unable to pick up the orders until the first week of January |
| Though quarterly revenues were substantially lower than prior year, hardware bookings were in line with first quarter historical averages, and up nearly 90% versus the prior year's quarter |
| We'll have to win something like that |
| On a GAAP basis, our first fiscal quarter operating loss was $7.2 million, compared to a loss of $3.5 million in the year-ago quarter |
| So, it can be a significant hit to us if it doesn't pass |
| And it looks like we've lost Brian |
| Is that becoming a bigger portion of the pipeline going forward? Richard Danforth A civil unrest involves local police |
| There has been a delay with our filing service, and we apologize for the delay in this call |
| As Richard mentioned, Genasys started fiscal 2024 with exceptionally low hardware backlog |
| Though there remains near-term uncertainty around the timing of the U.S |
| Mass notification messages and 60-year-old sirens are not adequate |
| In addition to a low backlog entering the quarter, we also had nearly $1.5 million of revenue that was booked and built during the December quarter, but the U.S |
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