Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| Throughout this time of organizational change, we have continued to build momentum through customer wins |
| We believe this should lead to long-term stockholder value creation |
| We are confident about the future of our advanced software and technology focus, and see tremendous potential for a SaaS business |
| We have a lot of very strong relationships with existing customers on the commercial side and on the government side, and we anticipate being able to enhance those with this new solution |
| I am pleased with the progress the team has made, and I am optimistic about our future as we move forward to serve customers with our robotics AI/ML software platform |
| So, these are really strong reasons for us feeling confident about taking a path of a SaaS business model using this advanced state of our AI/ML program that began in 2017, with the vision to use these technologies to greatly enhance capabilities in the robotic systems we were developing |
| In conclusion, by running a leaner business that is more efficient in reducing cash usage, the Company is in a stronger position to reach profitability |
| We are confident about the decision to focus on our AI/ML software and excited to build on the strong foundation that we’ve laid over many years, as we shared at our earnings call today |
| With years of Department of Defense-funded AI software development programs under our belt as well as ongoing DoD-funded contracts and one of the foremost authorities in the field leading our technology vision, we are well positioned to excel in redefining the use of software in the programming, training and management of industrial and other advanced robots in complex and dynamic environments |
| One of the reasons I am confident in taking the path of a SaaS model company is the advanced state of our AI/ML program that began in 2017, with a vision to use these technologies to greatly enhance the capabilities of our robotics systems |
| And then so, with his more than 40 years of experience and everything, we’re in a very good position to capitalize on this opportunity |
| Our AI/ML software platform is being developed to greatly reduce the time to program and train robotic systems, which we believe will accelerate implementation to a small fraction of the current approach, providing customers with significant increased productivity at a lower cost and in a more efficient manner |
| We believe we offer a compelling and differentiated value proposition with our software |
| Our goal is to outperform current AI approaches in both effectiveness and efficiency to create greater synergy between human workers and AI technology to enhance productivity and workflow agility |
| In addition to the expanded AI contract with the Air Force Research Laboratory, that I mentioned last quarter, we recently reported an additional important achievement |
| By decoupling our advanced AI/ML software from our own robotic systems, we believe we have the opportunity to reach a much broader market more quickly by targeting existing deployed robotic systems and new sales of third-party systems |
| This ability to continually learn and apply their learnings to new situations and challenges will enable these robotic systems to quickly adapt and continue to perform the desired task |
| After significant analysis, we identified subsea, aviation, solar and software as the four markets with the most potential for near-term revenue growth and acute customer need and the greatest traction in evolving markets |
| The common key differentiator of our robotic systems has been our advanced software, including our performance-enhancing artificial intelligence and machine learning capabilities |
| We believe that our AI software platform, which is applicable to the majority of the industrial robots being sold around the world, will enable a dramatic reduction in robotic training times, while also making industrial robots far more agile, meaning they can perform more tasks with greater variability, similar to how humans can perform a wide variety of tasks |
| And then we were fortunate enough to have Denis join the company in 2020 |
| We believe that there is a significant near and midterm market need and customer value proposition for the capabilities our software platform will provide |
| With the consideration of our cash position as well as third-party dependencies, customer decision timing and the cost and time to achieve a significant and steady revenue stream from our hardware products, it was clear that we should adjust course rapidly to rightsize the Company and get our cash usage down to a level that we believe will provide the best opportunity for success with our available resources |
| And then, it goes to even more sophisticated environment, and then does it in a closed-loop autonomy approach so that the software will help reduce costly workflow stoppages and prevent unnecessary downtimes for customers |
| Our decision to suspend commercialization efforts of our hardware products and focus on our software platform will result in significant cash savings and increased efficiencies throughout the organization, in large part by drastically reducing headcount |
| We believe this is the right thing to do |
| With more than 25 years of experience in the AI and ML technology space, Denis is an internationally recognized leader who has written more than 40 academic papers and holds several patents in applied controls for autonomous robotics and machine learning |
| This closed-loop autonomy approach is the key to how our software will help reduce costly workflow stoppages and prevent unnecessary downtime |
| By design, the success-based learning approach used by our software will enable robotic systems to perceive their environment and quickly adapt to changing circumstances by generalizing from their past experience |
| And those will be incremental upsells and cross-sells that we’ll be able to provide to them, so that they can take full advantage of the system to the extent that they need it, without requiring it upfront |
| Statement |
|---|
| Our SaaS business model is expected to result in sales and marketing decreasing by approximately 60% in the first quarter of 2024 from what it was in the third quarter of 2023 |
| Third quarter 2023 net loss was $29 million or a loss of $1.13 per share compared to a net loss of $22.5 million or a loss of $0.89 per share in the third quarter of the prior year |
| The only volatility I’d anticipate around that is if the sales come in faster than we thought |
| After adjusting for stock-based compensation expense, we also expect the implementation of our business realignment will result in general and administrative expenses trending down on a quarterly basis for the next two quarters |
| We made the decision to suspend our hardware commercialization efforts, implement a significant reduction in force and focus our resources on our AI platform |
| Third quarter non-GAAP net loss was $17 million or a non-GAAP loss of $0.66 per share compared to a non-GAAP net loss of $18.6 million or non-GAAP loss of $0.74 per share in 2022 |
| But our work did not stop there |
| Cost of revenue decreased to $1.2 million in Q3 2023 as compared to $3.6 million in Q3 2022, mainly due to decreased labor and material expenses charged to product development contracts during the quarter |
| General and administrative expenses were down 48% to $7.6 million in the third quarter, primarily due to reduced stock-based compensation expense of $6.8 million due to certain awards vesting in the prior year and reduced outstanding unvested awards due to employee terminations during the current year period |
| Research and development expenses were $10 million in the third quarter, down slightly from $10.5 million in the third quarter of 2022 |
| Sales and marketing expenses were $1.8 million, a decrease of 27% compared to the third quarter of 2022, due to a decrease in professional service fees related to third-party platform expenses utilized in data management of our products and services |
| With the need to ensure we have sufficient financial resources to pursue that opportunity, we have made the difficult decision to suspend for the foreseeable future, our subsea, aviation and solar robotics hardware commercial efforts |
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