Anterix Inc.

Good day, everyone, and welcome to the Antarex Third Quarter Investor Update. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Natasha Vaccarelli. Ma'am, the floor is yours.

Thank you, and good morning, everyone. I'm Natasha Vaccarelli, Vice President of Investor Relations and Corporate Communications, and I welcome you to the Antarex Third Quarter Conference Call. Joining me today are Rob Schwartz, President and CEO, Ryan Gerbrandt, COO, Tim Gray, CFO, and Chris Gutman-McCabe, Chief Regulatory and Communications Officer. Before we begin, I'd like to remind you that we will make forward-looking statements during this call regarding future events and our anticipated future performance, such as our commercial outlook and guidance. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Investors are cautioned not to place undue reliance on forward-looking statements. Additionally, we do not undertake any duty to update any forward-looking statements. Important factors and risks that could cause actual results to differ materially from the company's expectations are disclosed in our most recent SEC filings. These files can be accessed on our website or on the SEC's website. After Rob and Ryan provide their prepared remarks, we'll open the call for questions. With that, I'll turn the call over to Rob.

Thanks, Natasha. Good morning everyone and thank you for joining us today. As our first call of 2023, I want to take stock on where we are as a company. We fully understand that this was a difficult past year for investors, both in the markets overall and specifically for Enteric stockholders. Like any pioneering business defining a new market, when we embarked on this journey several years ago, we made some initial assumptions, some that we got right and some that we got wrong. To be clear, the value of our pipeline remains strong, with potential contract proceeds of well over $3 billion. As I've said in the past, I am confident we have the right product driven by the right team, and are pursuing the right sector at the right time. Today I'm going to talk you through a few of the lessons we've learned in this past year and describe how we've evolved our efforts to put that knowledge to use. We're also going to give greater transparency on our current customer progress with a measure we call demonstrated intent. And we'll discuss why we no longer intend to provide projections on contracts given the challenges of predicting contract timings. First, as we've elaborated upon previously, the process to get to contract with utility is incredibly more complex in many cases than we originally envisioned. Leasing spectrum is deeply interwoven into a growing list of disparate yet significant grid modernization issues facing utility leaders, including resiliency, cybersecurity, and decarbonization. While these act as a major force to implement change, they also dramatically expand the breadth of analysis, costs, and decision-making process each utility undertakes. This decision-making process requires us to obtain broad support from executives throughout the utility, including leaders in holding companies, operating companies, and functional areas. While this process continues to escalate and enhance the visibility of our value proposition, it has substantially increased the complexity of their decision-making, and as a result, makes timing less predictable. Accordingly, to support this broad and complex decision-making process, We've realized that consistent and extensive education is critical. We support the utility decision-making by engaging and educating across the entire organization to get to yes, even including utility regulators and industry associations. These efforts do help ensure that we're on the right path towards completion, but they don't necessarily give us greater clarity on timing. We also continue to see that solutions are key to utility adoption. We've accordingly initiated several well-received programs. Many of our utility discussions have pivoted from spectrum to use cases that demonstrate the strategic and economic benefits of 900 megahertz private broadband and become a necessary element of business case justifications on the path to contracting. We continue to widen the lens to share a range of these valuable outcomes with our potential utility customers. through numerous forums, including the Utilities Strategic Advisory Board, the Enterix Active Ecosystem, Utility Broadband Alliance, EEI, EPRI, and other major industry groups. And while there is some similarity of process and procedure between utilities, each has their own distinct way of approaching a private wireless broadband opportunity. And we need to clearly identify and adapt to each of utilities' processes. So while we are not seeing necessarily a shortening of the cycle time in getting the contract, we do see a strong influence from existing customers to their peers that impacts their desire and intent to move forward. We set out believing that we could have some greater influence on the timing of getting a utility to contract, and therefore an ability to predict within a range of certainty. But the reality is we can't do that with any real precision. The complexity of the unique nature of each opportunity directly impacts the timing of the process. That said, we can see with greater clarity and measure is the total scale of the market opportunity. We are creating a market that previously did not exist. We are taking utilities through a broadband adoption process that they've not been through before. We've experienced and learned to manage through unforeseen issues causing delays like CEO successions, procurement process changes, competitive actions, and more. While this pioneering role can mean a slower pace of adoption, for us it confirms that we know we have a unique product with a unique value proposition at a unique time for the utility industry. All of these learnings do challenge us on how to give appropriate guidance to investors on a business in a market in which we have a high level of confidence but not a high level of control of timing. As a result, we've determined that we should evolve the way we communicate to investors about our future customer opportunities. We've concluded that starting today and going forward, Enterix will not provide timing projections, but instead will provide what we believe is a transparent and fact-based scorecard that we've defined as demonstrated intent. What we know is that we see significant signs of customer intent before we get to contract. It's why we say that it's not a matter of if, but when. This intent is tangible, at times publicly visible, and is measurable. I'll now turn over to Ryan to take you through this in further detail, and then I'll wrap it up with some concluding remarks.