Boxlight Corporation

Good afternoon and welcome to the BoxLight Corporation third quarter financial results call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. You could submit a question via the web at any time by typing them in the ask question field. Type in your question and hit submit. For questions from the phone lines, you may press star 1 to access the queue. Please note that this conference is being recorded. I will now turn the conference over to our host, Jeff Stanliss of FNK IR. You may begin.

Thank you, Operator, and thank you, everyone, for joining. Earlier today, BoxLight issued a press release providing an operational update and discussing financial results for the third quarter ended September 30, 2024. This release is available on the Investor Relations section of the company's website at www.boxlight.com. Hosting the call today are Dale Strang, Chief Executive Officer, and Greg Wiggins, the company's Chief Financial Officer. Before we begin, I would like to remind participants that during the call, management will be making forward-looking statements. These statements may contain information about BoxLight's view of its future expectations, plans, and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors, including, but not limited to, risks and uncertainties associated with its ability to maintain and grow its business, variability of operating results, its development and introduction of new products and services, marketing and other business development initiatives, and competition in the industry, among other things. BoxLight encourages you to review other factors that may affect its future results and performance in BoxLight's filings with the Securities and Exchange Commission. The company does not undertake and specifically disclaims any obligation to update or revise such forward-looking statements to reflect new circumstances or unanticipated events as they occur, except as required by law. And with that, I'd like to now turn the call over to Dale Stray, CEO of BoxLight. Dale, the call is yours.

Thank you, Jeff, and thank you to everyone for joining us today. Over the past several months, BlockSlide has proven its ability to efficiently operate in what is a challenging environment while still positioning the company to thrive in anticipation of improved market conditions. We're continuing to align our expenses with our current revenue levels, and we're effectively communicating our strategic advantages to the market while simultaneously strengthening our product and solution suites. Primary goal of the company is to clearly and effectively deliver increased value to our partners, customers, and stakeholders. We're laser focused on simplifying our business and our solutions, our messaging, and ultimately having that be reflected with more efficient operational expenses. A current example of this focus, we are simplifying our brand structure in which our major product lines will be organized under three solution categories. Our worldwide IFPD and display products will all be under the Clevertouch label. Front row will be our global brand for all audio and communication solutions, while our STEM solutions, curricula, software, professional development will continue to feature Mimeo and EOS identities. Everything we do will carry the quote-unquote buy BoxLight umbrella company brand. We'll be rolling these changes out through the first half of 2025. Among the benefits of these moves, we now have the ability to offer the highly regarded Clevertouch IFPD brand to our entire market, specifically the US and Americans. We'll have a unified product lineup and a unified roadmap for our entire customer base globally. We'll have a simplified supply chain and logistics mechanisms, all while leveraging the Clevertouch front row and Mimeo brand equity that's been created by decades of dedicated market presence. We believe this clarity and expanded opportunity for our sales partners will provide flexibility, a heightened focus, and will benefit our partners and customers alike. We plan these adjustments carefully with the needs of these customers and partners top of mind. All services and warranties will remain exactly as our customers have come to expect, and the new user experience we provide will be the best of the best in technology with ease of use in mind so users can select a user experience that's familiar to them. We've had preliminary conversations with partners about these plans to consolidate, and it's been very well received. Our internal teams share this enthusiasm. So streamlining our brands and products is critical to our long-term success. Equally critical is a constant attention to building on what is the most robust end-to-end suite of solutions in our industry. BoxLight's broad portfolio gives us a significant competitive advantage against other players in the industry who often participate in one or maybe two areas, and often with an inferior set of solutions. Here's one example of our ongoing focus. We recently launched the new upgraded Impact Max 2 interactive panel. This panel comes with upgraded storage, an exclusive chipset for a faster, more intuitive display, and a unique first-of-its-kind multi-configuration UI, all at a very competitive price point. We will have a number of product line expansions to announce in the months and weeks to come that will support both our education and our enterprise customers' modernization efforts. BoxLite solutions continue to win industry acclaim. Recently, our CleverTouch Edge won a prestigious ProAV Best in Market Award for 2024. We also achieved an important Cyber Essentials certification, demonstrating our commitment to product safety and security across our whole product line. I'd also note that, as expected, our new front row Unity and front row TimeSign solutions, which I discussed on our last call, are now shipping. Both products support another important growth opportunity for BoxLight pertaining to school safety and communications. And as such, we're receiving very positive, encouraging feedback. As we continue to expand the ecosystem of compatible BoxLight audio and video solutions, We're giving customers a simple interface to communicate broadly or narrowly to address threats and improve school-wide communication. As part of this, we're adding integration partnerships between BoxLight and major third-party emergency management platforms, and we expect to add additional related platforms in the months to come. I believe we're better positioned today than we were at the beginning of 2024. We have a more robust suite of solutions, a more streamlined go-to-market message, We've expanded our sales channels, we've deepened our offerings, and we're aligning our teams. But IFPD demand remains soft versus prior periods, particularly in some of our largest markets, particularly in the U.S. Europe has been notably stronger than the U.S. For example, returns in Germany and Belgium in Q3 were up 29 percent and 18 percent, respectively. And this benefits us. due to our global presence. But as I said, we're aligning all of our resources with our current revenue reality, all while strengthening our business for the better days ahead. This will enable us to meet our profitability targets despite persistent revenue headwinds. We're bullish on the long-term outlook for our market. Our classroom solutions featuring campus communications convergence, addressing school safety and security needs, Our ever-improving digital signage platform and our growth in higher ed and enterprise markets all represent growth areas that will only enhance our core position in K-12 interactive classrooms. As I've said, this progress will likely not be linear, with challenging market conditions making quarter-to-quarter volatility an ongoing reality. But we are on the right path. With that, I'll now turn the call over to Greg to discuss our third quarter results.