Surgepays Inc (SURG) 2022 Q2 法說會逐字稿

Good day, and welcome to the SurgePays, Inc. Second Quarter 2022 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Brian Prenoveau. Please go ahead.

美好的一天，歡迎參加 SurgePays, Inc. 2022 年第二季財報電話會議。今天的會議正在錄製中。這次，我想把會議交給 Brian Prenoveau。請繼續。

Thank you, operator, and good afternoon, everyone. Welcome to the SurgePays Second Quarter 2022 Earnings Webcast and Conference Call. Today's date is August 11, 2022, and on the call today from SurgePays are Brian Cox, President and Chief Executive Officer; and Tony Evers, Chief Financial Officer.

謝謝接線員，大家下午好。歡迎參加 SurgePays 2022 年第二季財報網路廣播和電話會議。今天的日期是 2022 年 8 月 11 日，SurgePays 總裁兼執行長 Brian Cox 今天接聽了電話；和財務長托尼·埃弗斯。

Before we begin, I'd like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For a discussion of such risks and uncertainties, please see SurgePays' most recent filings with the SEC.

在我們開始之前，我想提醒大家，本次電話會議可能包含根據1995 年《私人證券訴訟改革法案》定義的前瞻性陳述。這些陳述受到某些風險和不確定性的影響，可能導致實際結果與實際結果有所不同。實質上來自於前瞻性陳述中所表達的內容。有關此類風險和不確定性的討論，請參閱 SurgePays 最近向 SEC 提交的文件。

All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call.

今天發表的所有前瞻性聲明僅反映我們目前的預期，我們沒有義務更新任何聲明以反映本次電話會議後發生的事件。

Also, during the course of today's call, the company will be discussing one or more non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measure are included in the press release we issued this afternoon. Copies of today's press release are accessible on SurgePays' Investor Relations website, ir.surgepays.com. In addition, SurgePays' Form 10-Q for the quarter ended June 30, 2022, will also be available on SurgePays' Investor Relations website.

此外，在今天的電話會議期間，該公司將討論一項或多項非公認會計準則財務措施。我們今天下午發布的新聞稿中包含了這些非公認會計原則財務指標與最直接可比較的公認會計原則指標的調節表。今天新聞稿的副本可在 SurgePays 的投資者關係網站 ir.surgepays.com 上取得。此外，SurgePays 截至 2022 年 6 月 30 日的季度的 10-Q 表格也將在 SurgePays 的投資者關係網站上提供。

And now I'd like to turn the call over to President and Chief Executive Officer, Brian Cox.

現在我想將電話轉給總裁兼執行長布萊恩考克斯。

Thanks, Brian. We were tremendously busy in the second quarter of this year, and the hard work of the team is translating to not just growth, but growth with a strategic direction. Revenue exceeded $28 million for the second quarter, which is a 146% increase compared to last year. The revenue trajectory is in line with the growth path that we laid out earlier this year. So we're thrilled with the progress we've been making, but even more excited about where the company can go in the future.

謝謝，布萊恩。今年第二季我們非常忙碌，團隊的辛勤工作不僅轉化為成長，而且轉化為策略方向的成長。第二季營收超過 2,800 萬美元，比去年成長 146%。營收軌跡與我們今年稍早制定的成長路徑一致。因此，我們對所取得的進展感到非常興奮，但更對公司未來的發展感到興奮。

Last month, we announced that we had eclipsed 150,000 subscribers in our mobile broadband business through the Affordable Connectivity Program. Our target by the end of the year was 200,000 customers, which I believe we'll exceed. But I want to take time to speak more of the big picture about growing our business and the long-term opportunity that's available to us.

上個月，我們宣布透過平價連線計劃，我們的行動寬頻業務用戶數量已超過 15 萬名。我們到年底的目標是擁有 20 萬名客戶，我相信我們會超過這個目標。但我想花點時間多談談我們業務發展的大局以及我們可以獲得的長期機會。

The ACP program continues to provide affordable broadband Internet access to low-income households. Estimates vary, but we believe anywhere from 30 million to 50 million households are eligible for this program. This is all to say that while 200,000 subscribers is a nice goal for 2022, we believe there's significant room for growth beyond that, and we need to be strategic and long-term minded in our decision-making and how we operate the business.

ACP 計劃繼續為低收入家庭提供負擔得起的寬頻網路存取。估計有所不同，但我們相信有 3000 萬到 5000 萬個家庭有資格參加該計劃。這就是說，雖然 2022 年擁有 20 萬訂閱者是一個不錯的目標，但我們相信除此之外還有巨大的成長空間，我們在決策和經營業務時需要具有策略性和長期性。

Growth and progress are never linear, and we're working tirelessly to fine-tune our operations, analyze performance and tighten the screws where necessary. As an example, in some of our recent analysis, we noticed that our higher data users were driving up average usage costs. So we went back to our carriers. We negotiated a new wholesale plan, which would ensure that no user could use beyond the cost of $15 per month to us. By pushing heavy users to this plan, we can now hedge costs, which should allow us to drive our average cost back down to around $12 per month. Our estimates show this would be an immediate impact of roughly $100,000 in savings per month.

成長和進步從來都不是線性的，我們正在不懈地努力調整我們的運營，分析績效並在必要時擰緊螺絲。例如，在我們最近的一些分析中，我們注意到較高的資料使用者正在推高平均使用成本。所以我們回到了我們的運營商那裡。我們協商了一項新的批發計劃，這將確保任何用戶的使用費用都不能超過我們每月 15 美元。透過推動大量用戶使用此計劃，我們現在可以對沖成本，這將使我們能夠將平均成本降低至每月約 12 美元。我們的估計表明，這將立即產生每月節省約 10 萬美元的效果。

We're not simply looking to get the highest subscriber level as quickly as possible. We're looking to build a successful business to maximize the opportunity that's been presented to us. One area where that's paramount is managing our cash and cash flow, deploying that cash in the best manner possible. I'd like to look at current assets as a gauge for where we've been, where we are and if we're on target.

我們不僅僅是希望盡快獲得最高的訂閱者等級。我們希望建立一個成功的企業，以最大限度地利用向我們提供的機會。最重要的一個領域是管理我們的現金和現金流，以盡可能最好的方式部署現金。我想把流動資產作為衡量我們過去、現在的狀況以及我們是否達到目標的衡量標準。

Accounts receivable has steadily increased throughout the year from $3.2 million at the end of 2021 to $5.6 million at the end of the first quarter to $8.3 million at the end of the second quarter. At the end of the second quarter, we had $8.7 million of cash compared to $3.4 million at the end of the first quarter. The June 30, 2022, cash total includes the final cash payments made for the acquisition of Torch Wireless. Where this available cash could have been used to buy tablets and add subscribers, we believe, and still believe, that the acquisition of Torch provides us with a much better long-term growth opportunity.

應收帳款全年穩定成長，從2021年底的320萬美元增至第一季末的560萬美元，再增至第二季末的830萬美元。第二季末，我們擁有 870 萬美元現金，而第一季末為 340 萬美元。截至 2022 年 6 月 30 日的現金總額包括為收購 Torch Wireless 支付的最終現金。如果這些可用現金可以用來購買平板電腦和增加用戶，我們相信並且仍然相信，收購 Torch 為我們提供了更好的長期成長機會。

Recall that with SurgePhone Wireless, we were only licensed to offer this program in 14 states. With the acquisition of Torch Wireless, we can now offer the program in all 50 states and can significantly ramp up wireless subscribers online. Torch has the additional benefit of also being a licensed lifeline carrier in certain states as well.

回想一下，對於 SurgePhone Wireless，我們僅獲得在 14 個州提供此計劃的許可。透過收購 Torch Wireless，我們現在可以在所有 50 個州提供該計劃，並可以大幅增加無線線上訂戶數量。 Torch 還有一個額外的好處，那就是在某些州也是獲得許可的生命線承運商。

In addition to Torch Wireless, in the second quarter, we purchased a client relationship management, or CRM, software platform that we had been using as a central nervous system for managing our wireless business. The CRM houses customer information, is integrated with underlying wireless carriers, manages the plans and metering, the customer service, compliance, billing and is connected to the FCC's database clearing house. We were expensed for this service on a per subscriber basis. And as subscribers increased, our costs also increased.

除了 Torch Wireless 之外，我們在第二季度還購買了客戶關係管理（CRM）軟體平台，我們一直將其用作管理無線業務的中樞神經系統。 CRM 保存客戶信息，與底層無線運營商集成，管理計劃和計量、客戶服務、合規性、計費，並連接到 FCC 的資料庫交換所。我們按每個訂戶支付這項服務的費用。隨著訂閱者的增加，我們的成本也隨之增加。

Looking at the growth opportunity and our internal goals for subscribers over the next few years, we made the strategic decision to buy the system outright and believe it will be cheaper to buy now than what the annual expense would be at 500,000 to 600,000 up to 1 million subscribers. The CRM platform has been rebranded as ShockWave, and interested parties can check it out by visiting shockwavecrm.com. That's shockwavecrm.com.

考慮到未來幾年的成長機會和我們對訂戶的內部目標，我們做出了直接購買該系統的戰略決策，並相信現在購買比每年 500,000 至 600,000 至 1 的費用更便宜。萬訂戶。該CRM平台已更名為ShockWave，有興趣的人士可以訪問shockwavecrm.com查看。那就是 shockwavecrm.com。

We're doubly excited about the ShockWave CRM because it can be licensed out to other companies as well and be another source of revenue for the company. The CRM currently has 6 other ACP and lifeline companies using the system and provides high-margin Software-as-a-Service revenue to our business. This isn't the main focus of SurgePays, but it does provide nice ancillary revenue stream to the company.

我們對 ShockWave CRM 倍感興奮，因為它也可以授權給其他公司，成為公司的另一個收入來源。 CRM 目前有另外 6 家 ACP 和生命線公司使用該系統，並為我們的業務提供高利潤的軟體即服務收入。這不是 SurgePays 的主要關注點，但它確實為公司提供了不錯的輔助收入來源。

I wanted to highlight these opportunities to demonstrate how our team is thinking about the overall potential of this business. The cash used for Torch Wireless and to purchase the CRM could have easily been used to buy more tablets, sign up subscribers and pump our numbers for the second quarter. However, we believe that's short-term thinking.

我想強調這些機會，以展示我們的團隊如何考慮該業務的整體潛力。用於 Torch Wireless 和購買 CRM 的現金本可以輕鬆用於購買更多平板電腦、註冊訂戶並增加第二季度的數量。然而，我們認為這是短期想法。

In our analysis, the cash used to buy Torch and the CRM provide a far greater payoff down the road. We have the ability to offer ACP in all 50 states. We can manage our customer base more efficiently. We believe we can lower costs, all while continue to grow our subscriber base at a really impressive rate.

根據我們的分析，用於購買 Torch 和 CRM 的現金將在未來提供更大的回報。我們有能力在所有 50 個州提供 ACP。我們可以更有效地管理我們的客戶群。我們相信我們可以降低成本，同時繼續以令人印象深刻的速度成長我們的用戶群。

Going forward, we continue to balance the need for growth with the cash flow provided and the cash opportunities. We've discussed various financing opportunities in the past, and we are close to obtaining a receivables financing line. We believe a more significant line of credit, backed by the U.S. government receivable, will allow us to ramp our wireless subscriber growth over a longer period of time with less dilution.

展望未來，我們將繼續平衡成長需求與提供的現金流量和現金機會。我們過去討論過各種融資機會，而且我們即將獲得應收帳款融資額度。我們相信，在美國政府應收帳款的支持下，更重要的信貸額度將使我們能夠在更長的時間內以更少的稀釋程度提高無線用戶的成長。

Yes, this was probably not the easiest route and has created more strain on the management team than a simple equity raise. However, we think the hard work and longer time frame is worth it as we can raise money to fund growth while not diluting shareholders and keeping float essentially the same as where it was when we listed on the Nasdaq.

是的，這可能不是最簡單的途徑，而且比簡單的股權融資給管理團隊帶來了更大的壓力。然而，我們認為艱苦的工作和更長的時間框架是值得的，因為我們可以籌集資金為增長提供資金，同時不會稀釋股東並保持流通量與我們在納斯達克上市時基本相同。

I honestly couldn't be more excited about all of the progress we've made as a company, but also how much more we can achieve. I'm extremely proud of how much we've been able to accomplish in a short amount of time and that the results are starting to be demonstrated in our financial results.

老實說，我對我們作為一家公司所取得的所有進步以及我們能夠取得的成就感到非常興奮。我對我們在短時間內所取得的成就感到非常自豪，而這些成果已開始在我們的財務表現中得到體現。

Revenue growth is accelerating. We're learning more and more about our subscriber base each month. We have more cash to fund the growth and more tools at our disposal today than we did 3 or 6 months ago to drive growth even further.

收入成長正在加速。每個月我們都會越來越多地了解我們的訂戶群。與三、六個月前相比，我們今天擁有更多的現金來為成長提供資金，也可以使用更多的工具來進一步推動成長。

As I've said before, we believe we are uniquely positioned to best offer these products and services to the underbanked and underserved because for so long, these communities have been overlooked by larger corporations. The ACP program is a great government initiative that provides invaluable Internet access to households that previously could not afford it. We want to gauge success by growing revenue and profit, obviously, but also believe we can do this by providing valuable services that most of us on this call take for granted.

正如我之前所說，我們相信我們處於獨特的地位，可以最好地為銀行服務不足和服務不足的人群提供這些產品和服務，因為長期以來，這些社區一直被大公司忽視。 ACP 計劃是一項偉大的政府舉措，為以前無力負擔的家庭提供了寶貴的網路存取服務。顯然，我們希望透過增加收入和利潤來衡量成功，但也相信我們可以透過提供有價值的服務來實現這一目標，而我們大多數人在這次電話會議上都認為這是理所當然的。

Being a licensed provider of mobile broadband is a perfect complement to our existing business of providing financial services to underbanked and underserved communities. We still have a goal to reach $1 billion in annual sales with profitable growth and in communities that haven't been adequately addressed. We are now operating a business that has the ability to grow organically or through accretive acquisitions and better serve our customers.

成為獲得許可的行動寬頻提供者是對我們為銀行服務不足和服務不足的社區提供金融服務的現有業務的完美補充。我們的目標仍然是年銷售額達到 10 億美元，並實現獲利成長，並在尚未充分解決的社區中實現這一目標。我們現在經營的業務有能力有機成長或透過增值收購來更好地服務我們的客戶。

I'll turn the call over to Tony to provide a brief review of the financial results before summarizing today's call. Tony?

在總結今天的電話會議之前，我會將電話轉給托尼，以簡要回顧財務表現。托尼？

Thank you, Brian, and good afternoon, everyone. I will begin by overview of the second quarter's financial results. For the quarter, we reported revenues of $28 million compared to $11.4 million in the second quarter of 2021, representing an increase of 146%. This was primarily attributable to the subscriber growth in our mobile broadband business, as Brian has discussed.

謝謝你，布萊恩，大家下午好。我將首先概述第二季的財務表現。我們報告的本季營收為 2,800 萬美元，而 2021 年第二季的營收為 1,140 萬美元，成長了 146%。正如布萊恩所討論的，這主要歸因於我們行動寬頻業務的用戶成長。

Gross profit increased 65% in the second quarter to $2.2 million compared to $1.3 million in the year ago period. SG&A expenses increased 11% in the second quarter compared to the second quarter of last year. The increase in the quarter was primarily driven by the professional fees and other costs associated with the company's move to Nasdaq in November largely insurance -- largely made up of insurance premiums.

第二季毛利成長 65%，達到 220 萬美元，去年同期為 130 萬美元。與去年第二季相比，第二季的 SG&A 費用增加了 11%。該季度的成長主要是由專業費用和與該公司 11 月搬到納斯達克相關的其他成本（主要是保險費）推動的。

Loss from operations narrowed to a loss of $847,000 from a $1.4 million loss in last year's second quarter. Net loss for the second quarter was $973,000 or a loss of $0.07 per share compared to a net loss of $214,000 or a loss of $0.07 per share in the second quarter of 2022 -- or second quarter of 2021.

營運虧損從去年第二季的 140 萬美元虧損收窄至 84.7 萬美元。第二季淨虧損為 973,000 美元，即每股虧損 0.07 美元，而 2022 年第二季或 2021 年第二季的淨虧損為 214,000 美元，即每股虧損 0.07 美元。

The second quarter of 2021 benefited from several nonrecurring items, including a $646,000 benefit from a change in the fair value of liabilities. We also had a $701,000 gain on settlement of liabilities and a $1.9 million benefit from amortization of debt discount, all in the second quarter of 2021. For quarter 2 2022, EBITDA was a loss of $85,973 close to breakeven.

2021 年第二季受惠於多項非經常性項目，其中包括負債公允價值變動帶來的 646,000 美元收益。我們還從債務清償中獲得了701,000 美元的收益，並從債務折扣攤銷中獲得了190 萬美元的收益，所有這些都發生在2021 年第二季度。2022 年第二季度，EBITDA 虧損85,973 美元，接近損益平衡。

Turning to the balance sheet, liquidity and cash flow. Our cash balance, as Brian has mentioned, as of June 30 was $8.7 million compared to $6.3 million at the end of 2021. Accounts receivable has increased by over $5 million as wireless subscriber growth increased to $8.3 million. The receivable is from the U.S. government for the mobile broadband subsidy. Payment usually occurs approximately 30 to 60 days after a new customer is verified and signed up.

轉向資產負債表、流動性和現金流。正如布萊恩所提到的，截至6 月30 日，我們的現金餘額為870 萬美元，而2021 年底為630 萬美元。隨著無線用戶成長至830 萬美元，應收帳款增加了超過500 萬美元。應收帳款來自美國政府的行動寬頻補貼。付款通常在新客戶經過驗證並註冊後約 30 至 60 天發生。

As Brian briefly mentioned in his remarks, we made cash payments of $800,000 to complete the Torch Wireless acquisition and $300,000 payment for the CRM system. Given our strengthened financial position, higher cash balance and capital structure, our cash allocation priorities are focused on investing in the business and maintaining ample liquidity for future growth.

正如 Brian 在演講中簡要提到的，我們支付了 80 萬美元現金來完成對 Torch Wireless 的收購，並支付了 30 萬美元購買了 CRM 系統。鑑於我們的財務狀況有所增強、現金餘額和資本結構有所改善，我們的現金分配重點是投資於業務並為未來成長保持充足的流動性。

I will now pass the call back to Brian for some closing remarks Brian?

現在我將把電話轉回給布萊恩，請他發表一些結束語 布萊恩？

Thanks, Tony. As a company, our North Star is building a successful organization that provides access to mobile broadband and essential financial services to households and communities where they aren't readily accessible. We believe we are cornering the underbank market both at home, around their local communities and in the local stores where they shop. If we do this successfully, we will tap into a huge market with tremendous growth potential.

謝謝，托尼。作為一家公司，我們的北極星正在建立一個成功的組織，為難以訪問的家庭和社區提供行動寬頻和基本金融服務。我們相信，我們正在壟斷國內、當地社區周圍以及他們購物的當地商店的銀行資金不足市場。如果我們成功做到這一點，我們將進入一個具有巨大成長潛力的巨大市場。

The hard work our team has done is starting to really show in our financial results. We've demonstrated how the growth in revenue is trending towards profitability and how the company is generating more cash. With more cash, we can reinvest in the business to gain wireless subscribers, increase our geographic reach and improve the overall performance of the company. We aren't focused on making each quarter look as rosy as possible.

我們團隊所做的辛勤工作開始真正體現在我們的財務表現中。我們已經展示了收入的成長如何趨於獲利以及公司如何產生更多現金。有了更多現金，我們就可以對業務進行再投資，以贏得無線用戶、擴大我們的地理覆蓋範圍並提高公司的整體業績。我們並不專注於讓每季看起來盡可能美好。

We are thinking longer term about where this company can be 2, 3, 5 years down the road with a significantly larger customer base and the ability to expand our revenue streams within this market. We couldn't be more excited about the opportunities ahead of us, and we are looking forward to sharing our progress with shareholders, employees and partners. I want to thank all the employees at SurgePays. Lastly, I greatly appreciate the support and interest of our shareholders as we continue this journey of growth.

我們正在更長遠地思考這家公司在 2、3、5 年後的發展方向，擁有更大的客戶群，並且有能力擴大我們在這個市場的收入來源。我們對眼前的機會感到無比興奮，並期待與股東、員工和合作夥伴分享我們的進步。我要感謝 SurgePays 的所有員工。最後，我非常感謝股東在我們繼續這趟成長之旅時的支持和興趣。

We will now open up the call to questions. Operator?

我們現在開始接受提問。操作員？

(Operator Instructions) And our first question will come from Michael Diana with Maxim Group.

（操作員說明）我們的第一個問題將來自 Maxim Group 的 Michael Diana。

So you mentioned 30 million to 50 million households potentially eligible for ACP. And I know at previous investor conferences and all you've talked about certainly growing not just this year but continuing to grow next year. So what gives you confidence that these potential subscribers are still going to be there next year or 2 years from now?

您提到有 3000 萬到 5000 萬個家庭可能有資格享受 ACP。我知道在之前的投資者會議上以及您所談論的所有內容肯定不僅在今年增長，而且在明年繼續增長。那麼，是什麼讓您相信這些潛在訂閱者明年或兩年後仍然會存在？

Thanks, Michael. I appreciate the question. What I think what gives me the most confidence is the demand that we see when we go into these areas that -- and I don't want to have the cliche underserved and to where we just kind of wash over that word. When we go into these communities and we -- our salespeople set up these tents and the line wraps around the corner until the folks there at the tent run out of devices, that lets me know, obviously, there's a need. And I think there's an intersect of the fact that it's a product that people want and need. So I think that's how we've hit a little bit of a synergistic home run.

謝謝，麥可。我很欣賞這個問題。我認為最給我信心的是當我們進入這些領域時我們看到的需求——我不想讓陳詞濫調得不到充分服務，也不想我們只是把這個詞洗掉。當我們進入這些社區時，我們的銷售人員搭建了這些帳篷，隊伍在拐角處纏繞，直到帳篷裡的人們用完設備，這讓我知道，顯然，有需求。我認為這是人們想要和需要的產品這一事實的交叉點。所以我認為這就是我們取得協同本壘打的方式。

There's different markets that I think you're going to see online when it comes to what more of the White House and other people are referring to. And I think a lot of these companies are going to be targeting existing customers, like, say, for example, the elderly who are already paying for services that now would just get a discount to their service. I don't know that necessarily there's a large group of folks, millions of folks in low-income neighborhoods who are going to be surfing on White House web pages to find access to mobile broadband.

當談到白宮和其他人所指的更多內容時，我認為您會在網路上看到不同的市場。我認為許多這樣的公司將瞄準現有客戶，例如已經為服務付費的老年人，現在他們只會獲得服務折扣。我不知道是否一定有一大群人，數百萬低收入社區的人會在白宮網頁上瀏覽行動寬頻。

So I think the fact that we actually roll up our sleeves and go into these communities, where we already are, by the way, and that's our home, and we go in there and we set that up, that's how I believe it's cornering using our -- a little bit -- I don't want to call it a competitive advantage, but it's more home to us. And that's where we -- and we're also not a big cable company just trying to get, again, pass on discounts to existing customers. We believe that our market is transient. Most of our customer base doesn't have broadband fixed wired Internet. So that's why I believe that there's such a significant uptick.

所以我認為事實上我們捲起袖子走進這些社區，順便說一下，我們已經在那裡，那是我們的家，我們進去並建立了它，這就是我相信它正在使用的方式我們的——一點點——我不想稱之為競爭優勢，但它更像是我們的家。這就是我們——而且我們也不是一家只是試圖再次向現有客戶提供折扣的大型有線電視公司。我們相信我們的市場是短暫的。我們的客戶群大多數沒有寬頻固定有線網路。這就是為什麼我相信會有如此顯著的上升。

And as I referenced in my -- some of my points there. The second quarter was an introspective quarter of, okay, hey, this is -- we've proved out this model. This is going to work. If we're at 0.5 million subscribers, what would I do today, what would I look back on and see what are the incremental costs that we can avoid such as -- like we talked about buying ShockWave. What are some of the things we can do now to not look back. I mean, we could have saved a couple of million dollars had we done it this way.

正如我在我的文章中提到的——我的一些觀點。第二季度是一個反思的季度，好吧，嘿，這是——我們已經證明了這個模型。這會起作用的。如果我們有 50 萬訂閱者，我今天會做什麼，我會回顧什麼，看看我們可以避免哪些增量成本，例如 - 就像我們談論購買 ShockWave 一樣。現在我們可以做哪些事情來避免回頭看。我的意思是，如果我們這樣做的話，我們可以節省幾百萬美元。

So that's really what -- we finally got a large enough sample once we equipped 100,000 subscribers to really start diving in and also geographically coast-to-coast because customer usage patterns are not the same in different parts of the country. So that's what gives me the belief that we can -- definitely, which we've talked about this far exceeds some of the numbers that we've put out there, but do so in a way to maximize the profit that we can make from each subscriber.

這就是真正的情況——一旦我們配備了100,000 名訂閱者，我們終於獲得了足夠大的樣本，可以真正開始深入研究，並且在地理上也可以從東海岸到東海岸，因為全國不同地區的客戶使用模式並不相同。所以這讓我相信我們可以——當然，我們已經討論過的遠遠超出了我們公佈的一些數字，但這樣做的方式是為了最大化我們可以從中獲得的利潤每個訂戶。

Okay. And asked a little different ways and based on what you just said. So I think you're saying there aren't that many, if any, other companies out there doing exactly what you're doing?

好的。並根據您剛才所說的內容提出了一些不同的方式。所以我認為你是說沒有那麼多（如果有的話）其他公司在做你正在做的事情？

I think there's always going to be companies that -- I mean, anytime you're successful, there's going to be people mimicking what you do. I think what's really interesting, the companies who are capitalized like us are going to be your larger companies that do more of a fixed line or fixed, I call it, fixed wire broadband, the traditional go in the side of the house of the apartment and have a modem in the house. Those are going to be the larger capitalized companies.

我認為總是會有一些公司——我的意思是，只要你成功，就會有人模仿你所做的事情。我認為真正有趣的是，像我們這樣資本充足的公司將是更大的公司，它們做更多的固定線路或固定，我稱之為固定有線寬頻，傳統的走在公寓房子的一側並在家裡有一個調製解調器。這些將是資本規模較大的公司。

The wireless companies who are attempting to do it the same way we are not able to do it at the scale that we are because they're not capitalized like we are. So we very rarely, if ever, this is the reports we get back from our frontline folks, very rarely do we ever see or, let's say, we get boxed out or bump into competitors out there on the street. And then you have quite a few of the other wireless companies that are doing SIM only, which -- and just -- I don't want to glaze over that.

試圖以與我們相同的方式做到這一點的無線公司無法以我們的規模做到這一點，因為他們的資本不像我們。因此，我們很少（如果有的話）從一線人員那裡得到這樣的報告，我們很少看到，或者說，我們被排除在外，或在街上遇到競爭對手。還有很多其他無線公司只做 SIM 卡業務，我不想對此視而不見。

These are devices, which is a tablet, which is the way that we -- that we put the service out. We have an 8-inch tablet, 8- to 10-inch tablet and it can also be used as a hotspot. Some of the other larger wireless companies are not going to tablet route. They're simply doing the SIM only, and then hoping that folks already have a tablet that they could put that SIM card in and use that to get their access to the Internet. I believe this market is an instant gratification market. Anytime somebody could see a tablet that's valued at $150 or so, and if you walk away with that tablet in hand, I think we'll always get that customer.

這些是設備，是平板電腦，這是我們提供服務的方式。我們有8英寸的平板電腦，8到10英寸的平板電腦，它也可以用作熱點。其他一些較大的無線公司不會走平板電腦路線。他們只是簡單地只做 SIM 卡，然後希望人們已經擁有一台平板電腦，可以將 SIM 卡放入其中並使用它來訪問互聯網。我相信這個市場是一個即時滿足的市場。任何時候，只要有人看到一台價值 150 美元左右的平板電腦，並且如果您拿著該平板電腦走開，我想我們總會吸引到這樣的客戶。

And the next question will come from Ed Woo with Ascendiant Capital.

下一個問題將由 Ascendiant Capital 的 Ed Woo 提出。

Yes. Congratulations on the quarter and on the growth. My question is, as we head into some uncertain economic environment, do you think that, that actually helps your business or hurts your business with the weakening macro environment?

是的。恭喜本季和成長。我的問題是，當我們進入一些不確定的經濟環境時，您認為，隨著宏觀環境的疲軟，這實際上對您的業務有幫助還是有損您的業務？

Thanks, Ed, for the question. That's an interesting one. I get asked that a lot. And I always want to navigate that carefully because I obviously never want to wish hard times on anyone. That's definitely not how we have built our company. It's to provide essential services and things that people need to help people.

謝謝埃德提出這個問題。這是一個有趣的事情。我常被問到這個問題。我總是想小心翼翼地導航，因為我顯然不想讓任何人經歷困難。這絕對不是我們建立公司的方式。它是為了提供人們所需的基本服務和東西來幫助人們。

But what it does is, I believe it increases our potential customer pool because it adds -- the way that the economy, inflation, gas prices and what have you, it's obviously, as we've seen some of the -- from the national numbers here, it's increasing the people who are dropping down into our, let's just call it, the socioeconomic status of qualifying for our service.

但它的作用是，我相信它增加了我們的潛在客戶群，因為它增加了——經濟、通貨膨脹、汽油價格以及你所擁有的東西的方式，很明顯，正如我們所看到的一些— —來自全國的這裡的數字，它正在增加越來越多的人進入我們的，讓我們稱之為，有資格獲得我們服務的社會經濟地位。

So I always want to be careful on how I say tough times for folks. I don't want to sound it's a beneficiary, but rather, it gives us the opportunity to help those folks. So I don't see -- it definitely doesn't create a hindrance. I mean, it increases our potential customer pool. Likewise, the -- one of the -- one of my challenges in looking at some of the government numbers for potential of this program, it's very difficult to pinpoint the immigrants.

所以我總是要小心地表達人們的艱難時刻。我不想聽起來它是受益者，而是它讓我們有機會幫助這些人。所以我不認為——這絕對不會造成障礙。我的意思是，它增加了我們的潛在客戶群。同樣，我在查看一些政府數據以了解該計劃的潛力時面臨的挑戰之一是，很難確定移民。

I don't know that there's a perfect dialed in number of how many immigrants there are out there that are undocumented. And this is one of the few government programs. It's the only communication program that -- where you can qualify as an undocumented immigrant, under the WIC program, which we've talked about that before. It's a program that people can qualify for to make sure that their children have baby formula, diapers and what have you. It's the WIC, W-I-C.

我不知道有多少無證移民的準確撥打號碼。這是為數不多的政府計劃之一。這是唯一一個您可以根據 WIC 計劃獲得無證移民資格的溝通計劃，我們之前已經討論過該計劃。人們有資格參加這個計劃，以確保他們的孩子有嬰兒配方奶粉、尿布等。這就是 WIC，W-I-C。

So if you're on WIC, you qualify for this program. So that's one reason why I think my personal opinion is I think that the potential for the market is greater than what we even discussed on the call. But -- so the more immigrants that come into the country and the more folks that may be having a little bit of difficulty, yes, I think it increases our customer pull. But again, I don't want to celebrate that, but it is an opportunity for us to help more folks.

因此，如果您加入了 WIC，您就有資格參加該計劃。因此，這就是我個人認為市場潛力比我們在電話會議中討論的還要大的原因之一。但是，進入這個國家的移民越多，遇到困難的人就越多，是的，我認為這會增加我們的客戶吸引力。但同樣，我不想慶祝這一點，但這是我們幫助更多人的機會。

Well, I definitely know that your customers are appreciative of the product that you guys give. And then my last question is on supply -- longer-term supply chain and then inflation. Any impact on your business longer term, especially possibly getting more tablets?

嗯，我絕對知道您的客戶非常感謝您們提供的產品。我的最後一個問題是關於供應——長期供應鏈，然後是通貨膨脹。從長遠來看，對您的業務有什麼影響，尤其是可能獲得更多平板電腦？

Ed, I'm actually glad you asked that question. I wasn't going to get into this today because there's -- there's obviously things that we're looking at as we talked about tightening the screws is kind of the way I always tell my guys. Find ways to keep the screws tight. Find ways to make more money on the same drops of sweat that we're already dropping so that we can attain more tomorrow.

艾德，我真的很高興你問這個問題。我今天不打算討論這個問題，因為當我們談論擰緊螺絲時，顯然我們正在考慮一些事情，這是我總是告訴我的人的方式。找到保持螺絲緊固的方法。想辦法用我們已經付出的同樣的汗水賺更多的錢，這樣我們就能在明天獲得更多。

One of those -- one of the big reasons why I couldn't be more excited about obtaining this -- the line of credit based on receivables is it's going to allow us to buy tablets in advance. And for those of you guys in this market of products and global sourcing, just-in-time purchasing is always going to be the most expensive type of purchasing because you're basically getting what's available right then at the price it's available for, and that's why we're seeing anywhere from $80 to $88 a tablet.

其中之一——我對獲得這項專案感到無比興奮的重要原因之一——基於應收帳款的信用額度將允許我們提前購買平板電腦。對於這個產品和全球採購市場中的人們來說，及時採購始終是最昂貴的採購類型，因為您基本上是以當時可用的價格獲得可用的產品，並且這就是為什麼我們看到一台平板電腦的價格在80 美元到88 美元之間。

If we have the capital -- and the reason we're doing that is because we're cash flowing and we're being very careful what I call redline growth. We're hitting our numbers internally, and then we're running out of tablets that month. We hit our numbers and sometimes, we hit them too fast and we run out too soon. But I was never willing to do a capital raise and dilute the company and just to achieve more sales.

如果我們有資本——我們這樣做的原因是因為我們有現金流，而且我們非常小心我所說的紅線成長。我們在內部達到了目標，然後那個月我們的平板電腦就用完了。我們達到了目標，有時，我們達到的速度太快，很快就耗盡了。但我從來不願意僅為了獲得更多的銷售額而籌集資金並稀釋公司的股權。

So with us having access to capital, no, it won't -- the supply chain doesn't affect us at all. It actually will enhance our ability to get those tablets for less because if I can put in an order with a deposit today, and I can get -- I can wait because I don't have to do just in time because I'm not using the money we made yesterday to buy tablets for tomorrow, then I can look and see a price that's closer to $72 to $75, which is huge.

因此，隨著我們能夠獲得資本，不，不會——供應鏈根本不會影響我們。它實際上會增強我們以更少的價格購買這些平板電腦的能力，因為如果我今天可以下訂單並支付押金，我就可以得到——我可以等待，因為我不必及時做，因為我不是用我們昨天賺的錢購買明天的平板電腦，然後我可以看到接近72 至75 美元的價格，這是巨大的。

It doesn't sound like much saving $10 to $15 a tablet, but when you're looking at 30,000, 40,000, 50,000 a month, that's a significant difference. So again, we're a beneficiary as long. As we can pay that money upfront and as long as we don't need that money tomorrow and I can wait and get those tablets next month, the supply chain is actually helping us out. And I think that we've leveraged our relationships with the distributors. We are the first call that these guys make.

一台平板電腦聽起來並沒有節省 10 到 15 美元，但當你考慮每月 30,000、40,000、50,000 美元時，這是一個顯著的差異。再說一遍，我們一直都是受益者。由於我們可以預先支付這筆錢，只要我們明天不需要這筆錢，並且我可以等待下個月拿到這些平板電腦，供應鏈實際上正在幫助我們。我認為我們已經利用了與分銷商的關係。我們是這些人打的第一通電話。

Michael asked a call about some of the other companies. A lot of the companies who do the model we do are smaller. Well, if I'm buying 30,000 tablets from you a month and a smaller company is buying 2,000 tablets from you, you call me first. So that's 1 reason that we've -- we don't run out of tablets because of supply chain. We run out of tablets because we've hit our max allocation of tablets we're willing to purchase for that month.

麥可打電話詢問了一些其他公司的情況。許多採用我們模式的公司規模都較小。好吧，如果我每個月向您購買 30,000 台平板電腦，而一家較小的公司向您購買 2,000 台平板電腦，您可以先給我打電話。這就是我們的原因之一——由於供應鏈的原因，我們不會用完平板電腦。我們的平板電腦用完了，因為我們已經達到了當月願意購買的平板電腦的最大分配量。

Sounds great, and I wish you guys good luck.

聽起來不錯，祝你們好運。

Thanks, Ed.

謝謝，艾德。

Thank you. And that does conclude the question-and-answer session. I'll now turn the conference back over to you for any additional or closing remarks.

謝謝。問答環節到此結束。現在我將把會議轉回給您，請您發表補充或結束語。

Thank you, everybody, for joining us today. You can now disconnect.

謝謝大家今天加入我們。您現在可以斷開連線。

Thank you. And that does conclude today's conference. We do thank you for your participation. Have an excellent day.

謝謝。今天的會議到此結束。我們非常感謝您的參與。祝你有美好的一天。