Yahoo Finance Boxlight Corp (BOXL) Q1 2024 Earnings Call Transcript Highlights: Navigating Challenges with ...
Revenue: Q1 2024 revenue was $37.1 million, a decrease of 9.9% from $41.2 million in Q1 2023.
Gross Profit: $12.8 million for Q1 2024, down from $15.1 million in the prior year period.
Gross Margin: 34.5% in Q1 2024, a decrease of 230 basis points from Q1 2023.
Net Loss: $7.1 million in Q1 2024, compared to a net loss of $2.9 million in Q1 2023.
Earnings Per Share (EPS): Negative $0.76 per basic and diluted share for Q1 2024, compared to negative $0.35 in Q1 2023.
Adjusted EBITDA: $0.2 million in Q1 2024, a significant decrease from $3.3 million in Q1 2023.
Operating Expenses: $16.4 million in Q1 2024, including $940,000 in severance charges, up from $15.3 million in Q1 2023.
Cash Position: $11.8 million as of March 31, 2024.
Total Assets: $142.4 million as of March 31, 2024.
Debt: Net debt of $38.5 million after issuance costs as of March 31, 2024.
Stockholders' Equity: $9.1 million as of March 31, 2024.
Release Date: May 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Boxlight Corp (NASDAQ:BOXL) achieved positive adjusted EBITDA, surpassing internal expectations for the quarter.
The company successfully reduced approximately $5 million in fixed costs through streamlining efforts.
Boxlight Corp (NASDAQ:BOXL) was recognized by Time Magazine as one of the world's top 250 ad tech companies, highlighting its strong market position.
Revenue for the quarter was $37 million, exceeding the forecasted $34 million.
Boxlight Corp (NASDAQ:BOXL) has a broad and comprehensive product suite, allowing it to meet diverse customer needs and maintain competitive advantage.
Negative Points
Boxlight Corp (NASDAQ:BOXL) reported a net loss of $7.1 million for the quarter.
The company experienced a 9.9% decrease in revenue compared to the same quarter the previous year.
Gross profit margin decreased by 230 basis points compared to the same period last year, primarily due to changes in product mix.
The market for interactive flat-panel displays remains soft, posing challenges for growth in this segment.
Despite cost-cutting measures, the company incurred severance charges of approximately $940,000 due to headcount reductions.
Q & A Highlights
Q: Can you talk about the order trends in the first quarter as well as how those trends have continued or maybe not continued in the second quarter thus far? A: (Gregory Wiggins - CFO) Order trends in Q1 were down about 10%, consistent with our revenue decline. Similar trends are observed in Q2 so far. Visibility for the rest of the year is limited, but the pipeline remains strong, and we are cautiously optimistic about returning to order growth as the year progresses.
Q: What gives you the confidence that you can be flat year over year in terms of revenue? A: (Gregory Wiggins - CFO) The expectation of returning to traditional seasonal spikes in Q2 and Q3, which were disrupted post-COVID, gives us confidence. We anticipate that this normalization will help maintain our revenue flat year over year.
Q: Can you talk about the progress you're making with Front Row? A: (Dale Strang - CEO) Significant attention has been given to the Front Row product category, recognizing its unique market demands. We've adjusted our sales approach to better match these demands and are seeing encouraging signs of increased demand and awareness for audio products in education.
Q: Any thoughts on when you expect to make progress on refinancing or addressing the debt? A: (Dale Strang - CEO) We are actively engaged with options that are independent of our stock performance to address our debt situation. We are exploring various solutions to find the most beneficial terms for our refinancing needs.
Q: What are your thoughts on gross margin given the strong performance this quarter? A: (Dale Strang - CEO) We are maintaining a conservative outlook due to potential price compression and changes in buying mix. The mix of audio versus video sales can significantly impact gross margins, and while we don't foresee a large downturn, mild compression is expected.
Q: How confident are you in the guidance provided for the second quarter, and how conservative is it? A: (Gregory Wiggins - CFO) The guidance is based on refined internal processes and better market interaction, which has improved our forecasting accuracy. We've implemented accountability changes and cost control disciplines that give us optimism for maintaining momentum throughout the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
