Genasys Inc.

hey ladies and gentlemen and welcome to the genesis incorporated fiscal third quarter 2023 conference call all lines have been placed on a listen-only mode and the floor will be open for questions and comments following the presentation if you should require assistance throughout the conference please press star 0 to reach a live operator at this time it is my pleasure to turn the floor over to your host brian alger SVP of Investor Relations and Corporate Development. Sir, the floor is yours.

Thank you, Karen. Good afternoon. Welcome to Genesis' fiscal 2023 third quarter financial results conference call. I am Brian Alger, SVP, Investor Relations and Corporate Development for Genesis. With me on the call today are Richard Danforth, Chief Executive Officer, and Dennis Klon, Chief Financial Officer. During today's call, management will make forward-looking statements regarding the company's plans, expectations, outlook, and future financial performance that involve certain risks and uncertainties. The company's results may differ materially from the projections described in these forward-looking statements. Factors that might cause such differences and other potential risks and uncertainties can be found in the risk factors section of the company's Form 10-K for the fiscal year ended September 30, 2022. Other than statements of historical facts, forward-looking statements made on this call are based only on the information and management expectations as of today, August 10, 2023. We explicitly disclaim any intent or obligation to update those forward-looking statements except as otherwise specifically stated. We'll also discuss non-GAAP financial measures and operational metrics, including adjusted EBITDA bookings. which we believe provide helpful information to investors with respect to evaluating the company's performance. For reconciliation of adjusted EBITDA to GAAP financial metrics, please see the table on the press release issued by the company at the close of the market today. We consider bookings and backlog to be leading indicators of future revenues and use those metrics to support production planning. Bookings is an internal operational metric that measures the total dollar value of customer purchase orders executed in a given period, regardless of the timing of the related revenue recognition. Backlog is a measure of purchase orders received that are scheduled to ship in the next 12 months. Finally, a replay of this call will be available in approximately four hours through the investor relations page on the company's website. Now, at this time, it's my pleasure to turn the call over to Genesis' CEO, Richard Danforth. Richard?

Thank you, Brian, and welcome, everyone. As expected, financial results for the fiscal third quarter improved significantly sequentially, and revenues were in line with the prior year's quarter. Software bookings and revenue were in line with expectation, while hardware bookings once again saw delays. Our hardware pipeline, including approximately $25 million of bookings that have shifted from fiscal 2023 to 2024, continues to expand. Third quarter recurring revenue was up 47% year over year, and a year-to-date software bookings are up 180%. While hardware revenues have been difficult to forecast, the steady growth and expansion of our software recurring revenue is gaining momentum. Recent competitive wins in Colorado, Texas, and the East Coast of the United States further demonstrate the value we are delivering with Genesys Protect. Based on existing orders and orders currently in contracting, we have secured over $5 million of ARR in less than eight quarters. Earlier this week, we launched our new corporate identity and the Genesys Protect platform. Genesys Protect combines the most comprehensive preparedness, response, and analytical solution to keep people, assets, and operations protected against the impacts of natural and manmade disasters. We expect the efforts made to date, combined with the rollout of the new Genesys Protect sales and marketing initiatives, to further accelerate software revenue growth next fiscal year. Genesys is the leader in protective communication. We are the only provider with a complete solution of emergency planning, notification, and management offerings. Genesys Protect enables our customers to be ready for any what-if scenario. Ready means organizations and enterprises have the confidence that comes from knowing their response plans have been fully tested. Ready means aggregating a wealth of trusted data sources that give our customers unmatched real-time visibility into their people, their assets, and their environment. Ready means tapping robust modeling and simulation of critical events before they occur to test the validity response plans. Ready means filtering out false alarms and reacting to real threats faster. Ready means being able to handle any situation from predictable disruptions to large-scale unexpected events, even when multiple events are happening at the same time. Ready means upholding a duty of care to keep everybody safe and informed by delivering the right message to the right people at the right time. Ready means constantly evolving, using data and insights from one incident response to drive better, more efficient outcomes in the next. As natural disasters, extreme weather, social and political unrest, crime, infrastructure failures, increase in severity and frequency, we have responded by consolidating our portfolio of products to help our customers be ready when it matters. If you haven't been on our website recently, I strongly suggest you go to explore the details on our solutions and numerous customer testimonials in our resource pages. As I mentioned at the top of my remarks, we have seen a strong software momentum with numerous competitive wins in the domestic public sector outside of California, including the replacement of an incumbent system for a whole state. Like most of our contracts in California, each of these recent wins were competitive and against much larger incumbents. We believe our customer first philosophy demonstrated by our product innovation and customer success practices has been a key deciding factor. Last month, Genesis responded to an RFP from the state of Florida for a statewide notification system supporting its 24 million residents and visitors. The process is intensely competitive, though relatively quick. By the time we report next quarter's results, we will know if we have been selected or not. Needless to say, we believe we have the best and most complete offering for our friends from the Sunshine State. As we enter August, fire season is becoming more intense and the need for comprehensive solutions that enable planning and real-time emergency management is increasingly evident. Already this year, there have been major fires that started in California and spread into Nevada. The York fire burned more than 100,000 acres. Though the fire was largely in the remote and lightly populated Mojave Desert region in California, that is not always the case. as it has been yet another reminder of the perennial dangers that exist as we saw this week in Maui. Our hearts go out to the family and friends of the dozens of people that have lost their lives or have been injured in this unprecedented fire. Genesis Protect offers an unmatched capacity for our customers to not just notify constituents about emergency and non-emergency incidents, but to use our data modeling planning, and simulation functionality to support the full lifecycle of any crisis before, during, and after. The momentum we have built thus far is impressive, and we expect to see an acceleration in software bookings and revenue as more customers become aware of our differentiation. On the LRAD front, we will continue our industry-leading position. Our hardware offerings are an important differentiator in our communication channels for Genesys customers. I want to provide a little color on the hardware activity. As I mentioned earlier, there is over 25 million of hardware bookings linked to four separate opportunities we have already been selected for or are the only known option that are now expected to book in fiscal 2024. Beyond that, our hardware pipeline continues to grow, new opportunities including the recently announced $900 million IDIQ from the United States Air Force. Genesis is one of 70 companies that were included in that award. Additionally, there are other opportunities for the U.S. Army that have yet to be quantified through task orders. Now I'd like to turn the call over to Dennis to go through the financials outlook in greater detail.