Boxlight Corporation Q1 FY2024 earnings call

• Dale Strang joined as CEO in early January and has been focusing on refocusing the company on reliable and efficient execution. - Approximately $5 million in fixed costs have been eliminated through streamlining product lines and work processes. - The first quarter results showed positive adjusted EBITDA, exceeding internal expectations despite one-time severance costs. - Boxlight has the broadest product offering in the market, spanning various price and specification tiers, and was recognized by Time Magazine as one of the World's Top 250 EdTech Companies. - The company has a refocused customer-centric sales approach, with customers transitioning to upgrades and enhancements. - Successful acquisitions in the past have expanded the product offering. - Greg Wiggins mentioned an additional $2 million bridge loan was provided by lenders in mid-April to meet short-term working capital needs, and efforts are ongoing to replace the debt facility.

In the first quarter of 2024, Boxlight's revenue was $37.1 million. EMEA revenues accounted for 54% ($20.2 million) of total revenues, Americas revenues made up 42% ($15.3 million), and other markets contributed 4% ($1.6 million). Flat panel displays constituted approximately 71% of total revenues, audio solutions represented 11%, and the remaining was from device accessories, software, professional services, and STEM solutions. Gross profit for the quarter was $12.8 million, with a gross profit margin of 34.5%, a decrease of 230 basis points from the prior year period due to changes in product mix.

• The company expects full-year revenues to remain flat year-over-year. - For Q2 2024, revenues are expected to be approximately $43 million to $45 million. - Adjusted EBITDA for Q2 2024 is forecasted to be $2 million to $3 million. - The company is focused on managing operating expenses, particularly controlling fixed G&A costs to align with forecasted revenues. - Approximately 50 positions have been eliminated, saving $5 million annually, and other cost-saving measures like reducing third-party R&D expenditures are in process.

• Market conditions for interactive flat panel displays remain somewhat soft in the near term. - Challenges in the maturing market, including competition. - Uncertainty regarding the process of refinancing debt and finding more favorable terms.

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: Order trends were generally consistent with revenue, down about 10% in Q1, similar trends seen so far in Q2, pipeline remains strong but second half of the year is harder to project.

Q: Can you talk about the progress you're making with FrontRow?

A: Recognized FrontRow has different sale dynamics, invested in attention, elevated FrontRow management, working on different go-to-market process.

Q: Any thoughts on when you expect to make progress on refinancing or addressing the debt?

A: Options are independent of the stock, actively engaged with certain options.