Inseego Corp (INSG) 2024 Q1 法說會逐字稿

Hello, and welcome to Inseego Corp's first quarter 2024, financial results conference call. Please note that today's event is being recorded. All participants today will be in a listen only mode. After today's presentation, there will be an opportunity for Q&A.

您好，歡迎您參加 Inseego Corp 2024 年第一季財務業績電話會議。請注意，今天的活動正在錄製中。今天所有參與者將處於只聽模式。今天的演講結束後，將有一個問答的機會。

On the call today are Phil Brace, Executive Chairman of Inseego Board of Directors, and Steven Gatoff, the Company's Chief Financial Officer. During this call, certain non-GAAP financial measures will be discussed. A reconciliation to the most directly comparable GAAP financial measures is included in the earnings release, which is available on the Investors section of the company's website. An audio replay of this call will also be archived there.

今天參加電話會議的有 Inseego 董事會執行主席 Phil Brace 和公司財務長 Steven Gatoff。在本次電話會議期間，將討論某些非公認會計準則財務指標。收益報告中包含了與最直接可比較的 GAAP 財務指標的調節，可在公司網站的投資者部分查看。這次通話的音訊重播也將存檔在那裡。

Please also be advised that today's discussion will contain forward looking statements. These forward-looking statements are not historical facts, but rather are based on the company's current expectations and beliefs. For discussion on factors that could cause actual results to differ materially from the expectations. Please refer to the risk factors described in the Company's Form 10-K, 10-Q and other SEC filings, which are available on the company's website.

另請注意，今天的討論將包含前瞻性陳述。這些前瞻性陳述並非歷史事實，而是基於公司目前的期望和信念。討論可能導致實際結果與預期有重大差異的因素。請參閱公司 10-K、10-Q 表格和其他 SEC 文件中所述的風險因素，這些文件可在公司網站上找到。

Please also refer to the cautionary note regarding forward-looking statements section contained in today's press release.

另請參閱今天新聞稿中包含的有關前瞻性陳述部分的警告說明。

With that, I'd like to turn the call over to Phil Brace, Executive Chairman of Inseego.

說到這裡，我想將電話轉給 Inseego 執行主席 Phil Brace。

Please go ahead.

請繼續。

Thank you, operator, and good afternoon, everyone. It's a pleasure to be here. I'd like to cover three topics with you today. First, I'd like to give you a quick summary of the Q1 results. Second I'd like to share some thoughts on our capital structure. And third, I'll provide some high-level view of the current quarter and focus areas ahead. I'll then turn the call over to Stephen, and we'll wrap up with some Q&A.

謝謝接線員，大家下午好。很高興來到這裡。今天我想和大家談三個話題。首先，我想向您簡單介紹一下第一季的結果。其次我想分享一些關於我們資本結構的想法。第三，我將提供對當前季度和未來重點領域的一些高層看法。然後我會將電話轉給史蒂芬，最後我們將進行一些問答。

Q1 2024 was a solid quarter for Inseego. Revenue came in at $45 million above our guidance and helped by strong year-over-year growth in our FWA business. Q1 adjusted EBITDA came in at $3.8 million, which was also better than expected and was driven by higher gross margin and lower operating expense. During the quarter, the sales organization launched a new channel program, which is an important part of starting to diversify the Company's revenue base and expand our go-to-market capabilities. We are already starting to see opportunities develop there.

2024 年第一季對 Inseego 來說是一個穩定的季度。由於 FWA 業務逐年強勁成長，營收比我們的預期高出 4,500 萬美元。第一季調整後 EBITDA 為 380 萬美元，也好於預期，這得益於毛利率上升和營運費用下降。本季度，銷售組織推出了新的通路計劃，這是開始實現公司收入基礎多元化和擴大我們的市場進入能力的重要組成部分。我們已經開始看到那裡出現的機會。

Finally, the Company also secured a significant renewal of its subscriber management platform at a major Tier one carrier customers. As I mentioned, on the last call addressing our capital structure is a significant focus for the company and the Board. While we still have much work to do the company's improved financial condition and business results give us confidence that there is a solution of particular note.

最後，該公司還獲得了主要一級營運商客戶的用戶管理平台的重大更新。正如我所提到的，在上次電話會議上，解決我們的資本結構問題是公司和董事會的重要關注點。雖然我們還有很多工作要做，但公司財務狀況和業務表現的改善讓我們相信有一個特別值得注意的解決方案。

We ended the quarter with more than $12 million in cash, which along with a $15 million prepayment on the subscriber management platform around the globe allowed us to repay our expensive ABL in April.

本季結束時，我們擁有超過 1,200 萬美元的現金，加上全球訂戶管理平台上的 1,500 萬美元預付款，使我們能夠在 4 月償還昂貴的 ABL。

As noted in the press release, the termination of the ABL decreases our interest expense meaningfully. Importantly, Selsun now provides us with the capacity to entertain other capital structures like secured debt. It will give us flexibility in terms of our ultimate capital structure and how we seek to restructure existing convertible notes.

正如新聞稿中所指出的，ABL 的終止大大減少了我們的利息支出。重要的是，Selsun 現在為我們提供了接受擔保債務等其他資本結構的能力。它將為我們的最終資本結構以及我們如何尋求重組現有可轉換票據提供靈活性。

The majority of the convertible notes are closely held and we are working on developing an acceptable solution. The Board is taking a deliberate, methodical approach and we are engaged with our legal and financial advisers who will keep investors updated over the coming quarters as we continue to make progress.

大部分可轉換票據均由少數人持有，我們正在努力製定可接受的解決方案。董事會正在採取深思熟慮、有條不紊的方法，我們正在與法律和財務顧問合作，隨著我們不斷取得進展，他們將在未來幾季向投資者通報最新情況。

With that, I'd like to turn briefly to our CEO search for progress. The interest has been robust, and we have identified a number of qualified candidates. Having said that, we are being thoughtful about moving forward, particularly as we navigate the important capital structure considerations I just talked about. Looking at the business, the outlook for the quarters for continued growth in revenue and profit. We are seeing good demand for our FWA business, and we are starting to see a rebound in the moment.

說到這裡，我想簡單談談我們的執行長尋求進展的問題。人們的興趣很濃厚，我們已經確定了一些合格的候選人。話雖如此，我們正在考慮向前推進，特別是在我們考慮我剛才談到的重要資本結構考慮因素時。業務方面，展望各季度營收及利潤持續成長。我們看到 FWA 業務的需求良好，並且目前開始反彈。

We are looking ahead to the back half of the year and beyond, as we're also building a number of exciting new product and software opportunities in both the carrier and the MSO space based on the strength of our roadmap.

我們展望今年下半年及以後，因為我們還在營運商和 MSO 領域基於我們路線圖的實力打造了許多令人興奮的新產品和軟體機會。

With that, I'd like to thank the team at Inseego, who work every day to make these things happen.

在此，我要感謝 Inseego 的團隊，他們每天都在努力實現這些目標。

I'm glad to take any questions in a few minutes right now. I'd like to pass the call over to Steve.

我很高興立即在幾分鐘內回答任何問題。我想把電話轉給史蒂夫。

Thanks, Phil. Good afternoon, everyone. I look forward to covering three things with you today. First, I'll take you through the Q1 2024 financial results. Second, I'd like to address some new language that the accounting rules require we have in our 10-Q that's getting filed tonight. And third, I'll provide some color on the business and our guidance for Q2 as Phil noted, we'll of course, wrap up by opening the call to your questions.

謝謝，菲爾。大家下午好。我期待今天與您討論三件事。首先，我將帶您了解 2024 年第一季的財務表現。其次，我想談談會計規則要求我們在今晚提交的 10-Q 中使用的一些新語言。第三，我將提供一些有關業務的資訊以及我們對第二季度的指導，正如菲爾指出的那樣，我們當然會開始回答您的問題來結束。

And with that, let's start with our Q1 results. Total revenue came in above guidance and $2.2 million or more than 5% higher sequentially at $45 million. Overall performance in the FWA product both sequentially and year over year and growth in our telematics and subscriber management platform offerings called contributed to better than anticipated revenue performance on a general uptick in demand and sales execution in the quarter.

接下來，讓我們從第一季的結果開始。總營收高於預期，達到 4,500 萬美元，比上一季成長 220 萬美元，增幅超過 5%。FWA 產品的整體表現（連續和同比）以及我們的遠端資訊處理和用戶管理平台產品的成長，在本季度需求和銷售執行普遍上升的情況下，推動了收入表現優於預期。

As we've talked about previously, while we expected Q1 mobile hotspot revenue to be down on the transition of the 4G product end-of-life in the previous quarter. The mobile hotspot business came in ahead of expectations in Q1 on carrier uptake of our 5G products.

正如我們之前談到的，雖然我們預計第一季行動熱點收入將因上一季 4G 產品生命週期結束的過渡而下降。由於營運商對我們 5G 產品的採用，第一季行動熱點業務的表現超出了預期。

FWA also saw good carrier demand in Q1 that drove year-over-year revenue growth of nearly 20% The higher growth, higher margin FWA product now constitutes about a third of the company's revenue up from 23% in the same quarter of 2023.

FWA 在第一季也看到了良好的營運商需求，推動營收年增近20%。為23%。

Looking at services and other revenue, as I mentioned, the telematics business came in ahead of expectations and at its highest quarterly revenue ever on good continued demand of the business. In addition, to the telematics contribution to growth, Q1 revenue from our subscribed SaaS offering also came in ahead of expectations and was up sequentially over Q4.

就服務和其他收入而言，正如我所提到的，遠端資訊處理業務超出了預期，並且由於業務的持續良好需求而達到了有史以來最高的季度收入。此外，除了遠端資訊處理對成長的貢獻之外，我們訂購的 SaaS 產品的第一季營收也超出了預期，並且比第四季連續成長。

As Phil mentioned, we were pleased that one of our key carrier partners signed a new deal with us during the quarter. It began on April 1 and provides Inseego with increased revenue and profitability for the next two years as we manage the investment and growth in our FWA and mobility businesses.

正如菲爾所提到的，我們很高興我們的一個主要營運商合作夥伴在本季與我們簽署了一項新協議。它於 4 月 1 日開始，隨著我們管理 FWA 和行動業務的投資和成長，Inseego 在未來兩年內將增加收入和獲利能力。

Moving onto gross margin, Q1 gross margin percentage came in at 38.7% on a non-GAAP basis. This was among the highest level in seven quarters and like the prior quarter and Q4 was impacted by some one-time items. Product gross margin benefited from a one-time pickup from components rebates, while services and other margin was lower on a higher proportion of professional services revenue in the subscriber business in Q1 that we don't expect to continue going forward.

說到毛利率，以非公認會計準則計算，第一季毛利率為 38.7%。這是七個季度以來的最高水平之一，與上一季一樣，第四季度也受到了一些一次性項目的影響。產品毛利率受益於組件回扣的一次性回升，而服務和其他利潤率則較低，因為第一季訂戶業務中專業服務收入的比例較高，我們預計這一趨勢不會持續下去。

Looking at non-GAAP operating expenses, Q1 came in favorable to Q4 and in line with expectations. Sequential efficiencies in R&D and reductions in depreciation and amortization expense were partially offset by executive severance costs and G&A, In the first quarter. We continue to take a disciplined approach to managing our spend across the organizations, Favory pipeline and revenue, generating sales and marketing spend and differentiation oriented R&D spend.

從非 GAAP 營運費用來看，第一季優於第四季度，符合預期。第一季度，研發的連續效率以及折舊和攤銷費用的減少被高階主管遣散費和一般管理費用部分抵銷。我們繼續採取嚴格的方法來管理整個組織的支出、Favory 通路和收入、產生銷售和行銷支出以及以差異化為導向的研發支出。

Also note and so far as overall expenses in Q1. For the first time in several years, the company's P&L contains accrued expense for incentive bonus plans for the company's employees. Previously, no such incentive was accrued or paid. With Inseego as improving operating performance, growing profitability and increasing free cash flow, we're pleased to be able to return to more market based compensation arrangements for the terrific group of employees that are driving the turnaround here in the business.

另請注意第一季的整體支出。多年來，該公司的損益表首次包含了公司員工激勵獎金計畫的應計費用。此前，沒有累積或支付此類獎勵。隨著 Inseego 經營績效的改善、獲利能力的提高和自由現金流的增加，我們很高興能夠為推動業務扭虧為盈的優秀員工群體回歸更多基於市場的薪酬安排。

Putting this all together, the favorable revenue performance and more focused operating expense resulted in Q1 adjusted EBITDA coming in higher than anticipated at $3.8 billion, a margin of nearly 9% and the fifth consecutive quarter of positive adjusted EBITDA.

總而言之，良好的營收表現和更集中的營運費用導致第一季調整後 EBITDA 高於預期，達到 38 億美元，利潤率接近 9%，並且是連續第五個季度調整後 EBITDA 為正值。

Wrapping up our Q1 results with balance sheet cash improved meaningfully from year end coming in at $12.3 million at March 31. And while we had $4.7 million drawn on our credit facility at the end of Q1, as Phil mentioned, we voluntarily paid that off and terminated the ABL facility in April.

截至 3 月 31 日，資產負債表現金較年末顯著改善，達 1,230 萬美元。正如 Phil 所提到的，雖然我們在第一季末從信貸額度中提取了 470 萬美元，但我們自願還清了這筆貸款，並在 4 月終止了 ABL 額度。

Additionally, the combination of the $15 million upfront payment on the subscriber renewal in April 2024. And our improving financial profile has provided the company with the liquidity on hand to finance our working capital needs going forward.

此外，還包括 2024 年 4 月訂戶續約的 1,500 萬美元預付款。我們不斷改善的財務狀況為公司提供了現有的流動資金，以滿足我們未來的營運資金需求。

With that, I'd like to move to my second topic today and call out some new language that's going to be in our 10-Q that's getting filed tonight. That relates to the accounting rules around our outstanding convertible notes. As you heard Phil say, we're being methodical and thoughtful about how we move forward to achieve an outcomes that's optimized for our stockholders and relevant stakeholders in restructuring and refinancing the convertible notes.

說到這裡，我想進入今天的第二個主題，並指出一些新的語言，這些語言將出現在我們今晚提交的 10-Q 中。這與我們未償還可轉換票據的會計規則有關。正如您聽到菲爾所說的那樣，我們正在有條不紊、深思熟慮地思考如何前進，以在可轉換票據重組和再融資方面實現對股東和相關利益相關者最優化的結果。

With the maturity of the notes now technically being one year out in May 2025, the accounting rules dictate that we include wording in our 10-Q that's typically referred to as going-concern language. Because while we are engaged with our bondholders to restructure and refinance the notes, we cannot be 100% assured that the desired restructuring and refinancing will be accomplished.

從技術上講，票據的到期日為 2025 年 5 月，會計規則要求我們在 10-Q 中包含通常稱為持續經營語言的措辭。因為雖然我們正在與債券持有人合作對票據進行重組和再融資，但我們不能 100% 保證能夠完成預期的重組和再融資。

It shouldn't go without noting that Inseego is in a positive and fairly uncommon position and including this required accounting disclosure, were profitable on an adjusted EBITDA basis were free cash flow positive. We don't need any financing for operations, and we're continuing to improve our near term liquidity.

值得注意的是，Inseego 處於積極且相當不尋常的地位，包括這項要求的會計揭露，在調整後的 EBITDA 基礎上實現盈利，且自由現金流為正。我們不需要任何營運融資，我們正在繼續改善短期流動性。

With that, let's turn to the third discussion topic on what we see in the current quarter. On product revenue, there are two drivers of higher revenue in Q2 over Q1. First, we're seeing strong carrier demand for our mobile products from a combination of increased structural demand as well as some more perishable in-quarter promotions at one of our carrier customers.

接下來，讓我們轉向第三個討論主題，即我們在本季看到的情況。在產品收入方面，有兩個因素導致第二季收入高於第一季。首先，我們看到營運商對我們的行動產品的強勁需求，這是由於結構性需求的增加以及我們的一個運營商客戶的一些更容易消失的季度促銷活動的結合。

Second, we're continuing to see growth in FWA in Q2 and early traction from the Q1 relaunch and rebranding of the Inseego channel program. Inseego Ignite services and other revenue was also seen sequential revenue growth in Q2, driven by the increased revenue from a subscriber model that's adding a combination of SaaS subscription expansion and additional professional services revenue.

其次，我們繼續看到第二季 FWA 的成長以及第一季重新啟動和 Inseego 通路計畫品牌重塑帶來的早期吸引力。Inseego Ignite 服務和其他收入在第二季也較上季成長，這是由於訂閱者模式增加了收入，該模式增加了 SaaS 訂閱擴充功能和額外的專業服務收入。

Pulling this together, Q2 non-GAAP gross margin percentage is expected to be down slightly on product mix as the high margin subscriber revenue is offset by an even greater increase in the lower gross margin [momentum]. Q2 non-GAAP operating expenses are expected to be relatively flat on a dollar basis over Q1.

綜合考慮，第二季產品組合的非 GAAP 毛利率預計將略有下降，因為高毛利率的用戶收入被較低毛利率的更大增長所抵消[勢頭]。以美元計算，第二季非公認會計準則營運費用預計將與第一季相對持平。

And so considering all this, we're providing the following guidance for Q2 2024. Total revenue in a range of $52 million to $56 million and adjusted EBITDA in the range of $6.5 million to $7.5 million.

因此，考慮到所有這些，我們為 2024 年第二季提供以下指導。總收入在 5,200 萬美元至 5,600 萬美元之間，調整後的 EBITDA 在 650 萬美元至 750 萬美元之間。

In closing, we're pleased with the results that we delivered in Q1, and we're encouraged by the several positive dynamics going on in the business that are driving greater revenue and profitability in Q2.

最後，我們對第一季的業績感到滿意，並且我們對業務中正在發生的一些積極動態感到鼓舞，這些積極動態正在推動第二季度的收入和盈利能力的提高。

With that, we appreciate your time and support, and we're glad to open the call for questions.

在此，我們感謝您的時間和支持，我們很高興開始提問。

Operator,

操作員，

Tore Svanberg with Stifel.

Tore Svanberg 與 Stifel。

Thank you, and congratulations on the continuous progress here. So my first question is on the Q2 guidance. So just from a mix perspective. Just so I understand this. So product revenue obviously up, but carrier up more than fixed wireless. And then what were some of the moving parts on the on the services again, please.

謝謝您，並祝賀您在這裡不斷取得進步。所以我的第一個問題是關於第二季的指導。所以只是從混合的角度來看。就這樣我明白了這一點。因此產品收入明顯上升，但營運商的增幅超過固定無線。那麼服務中的一些活動部件是什麼，請再說一次。

Sure Tore, It's Steven. So on what we talked about was that the subscriber renewals coming in and we were successful in negotiating a higher revenue for that. And so in services and others, the subscriber business that's driving the bigger increase in revenue on that piece. And as you said, in product revenue, we talked about the increased revenue coming from both [mobile] and FWA.

當然是托雷，我是史蒂文。因此，我們談論的是訂戶續訂的情況，我們成功地為此談判獲得了更高的收入。因此，在服務和其他領域，訂戶業務推動了該領域收入的更大成長。正如您所說，在產品收入方面，我們談到了來自[行動]和 FWA 的收入增加。

Great.

偉大的。

And as my follow-up, this sort of new language that's coming in the 10-Q, so is this sort of a recent accounting rule change or was this kind of more you were notified about. This is just typical language that you have to include?

作為我的後續行動，這種新語言將在 10-Q 中出現，這是最近的會計規則變化，還是您收到的更多通知。這只是您必須包含的典型語言？

Neither of those we were not notified of at all. It's really a self reporting description in the footnotes of the financials. And it really is a standard, if you will, accounting requirements for what they define as a going concern. And so they look to say, okay, you're one year out from the maturity of the notes, the $163 billion of notes in the capital structure. And so because those are now within one year, they're considered current.

我們根本沒有收到任何通知。這實際上是財務報告腳註中的自我報告描述。如果你願意的話，這確實是他們定義的持續經營的會計要求的標準。所以他們會說，好吧，距離票據到期還有一年，資本結構中的 1,630 億美元票據。因此，由於這些內容現在不到一年，因此它們被認為是最新的。

And so if you look technically at the cash balances, not $160. And so that's a that requires triggers the disclosure of that language the quote going-concern language because of the capital structure.

因此，如果從技術上看現金餘額，不是 160 美元。因此，由於資本結構的原因，這需要觸發該語言的揭露，即報價持續經營語言。

Sounds good.

聽起來不錯。

Actually, just one last one. You mentioned telematics revenue reaching a record and this quarter, is that business expected to be up as well in the June quarter, or we'll take a breather?

其實，只是最後一張。您提到本季遠距資訊處理收入創下歷史新高，該業務預計在六月季度也會有所成長，還是我們會休息一下？

Probably more of the latter. We were pleased that in the first quarter it did nicely coming off of 2023, but our expectations are that it kind of considered continues at a consistent approach.

恐怕後者更多。我們很高興看到 2023 年第一季表現良好，但我們的期望是，它會以一致的方式繼續下去。

Great.

偉大的。

Thank you.

謝謝。

Lance Vitanza, TD Cowen.

蘭斯·維坦扎，TD·考恩。

Thanks, guys. And first off, congratulations. Great quarter. I guess. Let me just start with the first quarter and we'll get to the guidance in a second. But revenue was up 5% sequentially. I assume that's the right way to analyze revenue growth at this stage. And so I'm just wondering if there's anything unusual there from a timing perspective, either. I'm guessing not pulled forward given the guidance.

多謝你們。首先，恭喜你。很棒的季度。我猜。讓我從第一季開始，我們將在第二季討論指引。但營收季增了 5%。我認為這是分析現階段收入成長的正確方法。所以我只是想知道從時間角度來看是否有什麼不尋常的地方。我猜在指導下不會向前推進。

But, perhaps that got pushed out of the fourth quarter of last year and into the first quarter?

但是，也許這已經從去年第四季推遲到第一季了？

On a much peace facility in general?

一般而言，是在一個和平設施上嗎？

On revenue?

靠收入？

The short answer is no, there was nothing meaningfully that got to your both your good points and questions.

簡短的回答是否定的，沒有任何有意義的東西可以表達你的優點和問題。

Nothing meaningful that got pushed from Q4 into Q1 nothing that got pulled from Q2 into Q1, is it pretty some pretty in-quarter demand gen and execution quarter.

從第四季推到第一季沒有任何有意義的事情，從第二季到第一季也沒有任何有意義的事情，這是否是相當不錯的季度內需求產生和執行季度。

Okay. Okay, great. And then so on the second quarter guide, right. So it is 20% sequential growth at the midpoint. And I'm wondering how much of that is an artifact of the prepayment that you took in April? I assume that you're not recognizing the $15 it's a prepayment.

好的。好的，太好了。然後是第二季指南，對吧。因此，中點環比增長為 20%。我想知道其中有多少是您四月預付款的結果？我假設您沒有意識到 15 美元是預付款。

Right.

正確的。

So how much of that $15 million are you recognizing in the second quarter? And then can you give us just at least a rough feel for how quickly the rest of that prepayment will be recognized as revenue over the balance of the year going forward?

那麼，您在第二季度確認了這 1500 萬美元中的多少？然後，您能否至少讓我們大致了解一下，剩餘的預付款將多快被確認為未來一年剩餘時間的收入？

Sure.

當然。

The easy answer both conceptually, business-wise and financially is the prepayment does not affect revenue recognition at all zero. So it just affects cash.

從概念上、業務上和財務上來說，簡單的答案是預付款對收入確認的影響完全為零。所以它只影響現金。

We had more cash on hand, which was helpful.

我們手頭上有更多現金，這很有幫助。

That contract is basically taken straight-line ratably over the two year period. So the fact that we had prepayment upfront has zero impact on the P&L on revenue recognition.

該合約基本上是在兩年期間按直線比例計算的。因此，我們預付預付款的事實對收入確認的損益表的影響為零。

It's recognized ratably over the period.

在此期間，它得到了廣泛認可。

Okay, great. So then I guess my question is you've got how much confidence do you have in the visibility of revenues at this point? And what's changed because it was that long ago and I know this predates you, but that it wasn't that long ago that the leadership of this company was fairly adamant that they had virtually no visibility?

好的，太好了。那麼我想我的問題是，您對目前收入的可見度有多大信心？發生了什麼變化，因為那是很久以前的事了，我知道這比你早，但就在不久前，這家公司的領導層還相當堅定地認為他們幾乎沒有知名度？

Yes, it's a fair.

是的，這是公平的。

And understandable question, and Phil and I will tag team on it a bit.

這是可以理解的問題，菲爾和我會在這個問題上標記一下團隊。

But yes, the news on guidance looking at Q2 the quarter, we're in, as we said, we are bullish on the business itself on the product business, specifically. There's a lot of activity going on in the second half of the quarter kind of right now, which is which is why you see us saying, okay, that's there's some demand that we think it looks potentially perishable, meaning it's in-quarter promotion. And the big question is going to be, as we know some of the new team and others as we evolve the business and grow more is how the increase in demand and how that increase in the channel program and how well they've done how much of that is sustainable growth in Q3 and Q4?

但是，是的，關於本季第二季的指導消息，正如我們所說，我們看好業務本身，特別是產品業務。現在本季後半段有很多活動正在進行，這就是為什麼你看到我們說，好吧，有一些需求，我們認為它看起來可能會消失，這意味著它是季度內促銷。最大的問題是，隨著我們業務的發展和成長，我們知道一些新團隊和其他團隊的需求如何增加，通路計畫如何增加，以及他們做得如何其中第三季和第四季的可持續成長是什麼？

So right now, we're not being presumptuous on what we think we can do. We're encouraged right now and so the visibility comes because I think and we'll tag team on this as it's a combination of increase in demand and longer term. So that helps by definition.

所以現在，我們不會對我們認為我們能做的事情妄自菲薄。我們現在受到了鼓勵，因此可見性出現了，因為我認為我們將在這一點上標記團隊，因為這是需求成長和長期的結合。所以從定義上來說這很有幫助。

And then also our view is there's just a different rigor and cadence in the Business Department and the sales team to track the business differently. Everything is in Salesforce. We have a pipeline review call where we talked about, what two, three, what Q4 look like now. And so there's just a different construct of how we look at the business than perhaps was here a year ago with different folks. So that's certainly part of it. And that's probably a bit of an uptick in demand in the market.

我們的觀點是，業務部門和銷售團隊的嚴格性和節奏不同，以不同的方式追蹤業務。一切都在 Salesforce 中。我們召開了一次管道審查電話會議，討論了第二、第三、第四季現在的情況。因此，與一年前不同的人相比，我們看待業務的方式可能有所不同。所以這肯定是其中的一部分。這可能是市場需求的一點上升。

I think just in general, what we're seeing strong demand across the board from our FWA products. Steve mentioned we've got some promotional activity that we're trying to take advantage of that came when the sun shines the well for the quarter.

我認為總的來說，我們看到 FWA 產品的全面強勁需求。史蒂夫提到我們有一些促銷活動，我們正試圖利用這個季度陽光明媚的時候進行的活動。

So I think we've got something that we're trying to take advantage of and the subscriber renewal helps helps as well. So this is a situation where we had some a bit of a tailwind given by giving the best of our strong product roadmap the customer acceptance has been good and them.

所以我認為我們已經有了一些我們正在嘗試利用的東西，訂閱者續訂也有所幫助。因此，在這種情況下，我們透過提供我們強大的產品路線圖的最佳部分而獲得了一些順風，客戶接受度很好。

We'll just go from there.

我們就從那裡出發。

If I could just squeeze one more in before I jump back in queue. The fact that this carrier was incentivized to give you a $15 million prepayment. That suggests to me that the pricing trends that you guys are seeing are most likely in your favor and that the carrier was trying to get ahead of perhaps, you know, escalating prices over overtime. Is that is that reasonable read or were there some other factors that were not privy to behind the scenes that might have driven that, that that prepayment?

如果我能在重新排隊之前再擠一瓶就好了。事實上，這家營運商會向您支付 1500 萬美元的預付款。在我看來，這表明你們所看到的定價趨勢很可能對你們有利，而承運商正試圖搶先一步，你知道，隨著時間的推移，價格可能會不斷上漲。這是合理的解讀還是有其他一些不知情的幕後因素可能導致了這種情況，即預付款？

Thanks.

謝謝。

Look, I think that I mean, you'll see the effect of that particular note renewal in our financials. And so you can make assumptions about what that is that you know, the particular prepayments and we work very closely with this customer for many years.

聽著，我想我的意思是，您會在我們的財務狀況中看到該特定票據更新的影響。因此，您可以對您所了解的情況、特定的預付款做出假設，並且我們與該客戶多年來一直密切合作。

This product's been embedded for a long time. And we had a we had it was one facet of a multifaceted negotiation, and we were able to successfully negotiate. And so that's that I would read much more into it than that.

該產品已經嵌入很長時間了。我們有一個多方面談判的一個方面，我們能夠成功地進行談判。所以我會讀更多的內容。

Thanks very much, Jason.

非常感謝，傑森。

Next we have a follow-up question from Tore Svanberg.

接下來我們有來自 Tore Svanberg 的後續問題。

Yes, thank you, Phil. I had a question on the channel program. You noted. So this is something that's going to diversify the revenue base. Could you talk about what some of the areas that you are targeting from that program and also from an OpEx perspective, what does that program necessarily mean? I obviously assume that's already included in your 2Q guidance. But even beyond that, would you have to invest more OpEx dollars to get that program up and running?

是的，謝謝你，菲爾。我對頻道節目有疑問。你注意到了。因此，這將使收入基礎多樣化。您能否談談您從該計劃中瞄準的一些領域以及從營運支出的角度來看，該計劃意味著什麼？我顯然認為這已經包含在你們的第二季指導中。但除此之外，您是否還需要投入更多的營運支出來啟動並運行該計劃？

Yes, we tried to best answer that. And now Steven can jump in here from our I mean. So what we're trying to do here and historically the Company has said the revenue profile. The Company has been dominated by very large carrier customers, and we're very thankful to have them and they mean a lot to us and that's an important part of the business for us.

是的，我們試著最好地回答這個問題。現在史蒂文可以從我們的我的意思跳到這裡。因此，我們在這裡嘗試做的事情以及公司歷史上已經說過的收入狀況。該公司一直由大型營運商客戶主導，我們非常感謝他們，他們對我們意義重大，這是我們業務的重要組成部分。

Obviously, also for our own duty perspective, we need to diversify that revenue base. So we're not as dependent on those large customers and so some things that happens there is a 10 those customers tend to be focused on more specialized, higher value solutions where we're partners solution. And frankly, the sales team has had experience some of the new sales team that we're bringing on have experienced in building programs around that. And that's going to be part of our revenue diversification strategy going forward.

顯然，從我們自己的職責角度來看，我們需要讓收入基礎多樣化。因此，我們不那麼依賴那些大客戶，因此，有 10 個客戶往往會專注於更專業、更高價值的解決方案，而我們是合作夥伴的解決方案。坦白說，銷售團隊已經擁有一些經驗，我們正在引進的一些新銷售團隊在圍繞這一點建立專案方面也有經驗。這將成為我們未來收入多元化策略的一部分。

With respect to additional costs, whereas our goal is to actually reallocate existing capital to fund that self-fund that. So I would not expect any significant change in our cost profile as a result of doing that, we're choosing orders where we spend the money.

關於額外成本，而我們的目標是實際重新分配現有資本，為自籌資金提供資金。因此，我預期我們的成本狀況不會因此而發生任何重大變化，我們會選擇花錢的訂單。

That's great perspective.

這是一個很棒的觀點。

Thank you.

謝謝。

And next we have a follow-up from Lance Vitanza.

接下來我們有蘭斯·維坦扎 (Lance Vitanza) 的後續報導。

Please go ahead.

請繼續。

Hey, thanks, guys.

嘿，謝謝，夥計們。

Thanks for Let me jump back in here. I wanted to ask about cash balance at the end of the first quarter. So before the prepayment came in, you are you'd put up $12 million of cash, which was actually recognizing it's not a lot in absolute dollars, but it was well, it had been we had estimated and I'm just hoping you could maybe explain that the beat in your cash at the end of the quarter seemed considerably larger than the beat in EBITDA, and we're pleased to see both.

謝謝你讓我跳回這裡。我想問一下第一季末的現金餘額。所以在預付款到來之前，你已經投入了 1200 萬美元的現金，這實際上是認識到這在絕對美元上並不是很多，但很好，這是我們估計的，我只是希望你能也許可以解釋一下，季度末現金的成長似乎比EBITDA 的成長要大得多，我們很高興看到兩者。

But so I'm guessing that you had some favorable working capital inflows in the first quarter. Is that correct? And if so, will those reverse later in the year? I'm just thinking about how we should model your cash flows from here on out?

但我猜第一季的營運資金流入情況良好。那是對的嗎？如果是這樣，今年稍後情況會逆轉嗎？我只是在考慮從現在開始我們應該如何模擬您的現金流？

Yes, that's right.

恩，那就對了。

I think essentially recall the conversation we had from Q4 where the cash flow at year end and the cash balance was a little bit lighter. And so there's a view that that was a timing difference between Q4 and Q1.

我認為基本上回想起我們在第四季的對話，當時年末的現金流和現金餘額有點少。因此有人認為這是第四季和第一季之間的時間差異。

So if you look at the two together, it's pretty consistent quarter to quarter. And so one, we expect a bit of a uptick in Q2, as you would suspect with.

因此，如果你把兩者放在一起看，你會發現每個季度的情況都非常一致。因此，我們預計第二季度會出現一些上升，正如您所懷疑的那樣。

The core business growing and the growth and EBITDA profitability growing and then we'll see what happens in the back half of the year, but we expected to be up consistent.

核心業務的成長、成長和 EBITDA 獲利能力的成長，然後我們將看到下半年會發生什麼，但我們預計會保持一致。

Great.

偉大的。

This concludes our question and answer session.

我們的問答環節到此結束。

And that concludes our conference. Thank you for attending today's presentation. You may now disconnect.

我們的會議到此結束。感謝您參加今天的演講。您現在可以斷開連線。