Inseego Corp.

Hello, and welcome to NSEGO Corp's first quarter 2025 financial results conference call. Please note that today's event is being recorded. All participants today will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity for Q&A. To ask a question, please press star then one on your telephone keypad. To withdraw your question, please press pound then one. On the call today are Juho Sarvikas, Chief Executive Officer of INSEGO and Steven Gethoff, 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 investor relations section of the company's website. An audio replay of this call will also be archived there. 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 those 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. Please also refer to the cautionary note regarding forward-looking statements section contained in today's press release. With that, I'd like to turn the call over to Juho Savickas, Chief Executive Officer. Please go ahead.

Thank you, Operator, and thank you all for joining. This is my second earnings call as the CEO of Insigo, and I'm even more excited to be here today than the last time we spoke in February. I'm proud of the progress we've made executing the strategy I set in motion when I joined Insigo in January. We have a lot of work ahead of us, but we're getting it done. I want to thank the awesome Insigo team for their focus, energy, and commitment. Today, I will focus on two topics. First, I'll give you an overview of our Q1 results, Second, I'd like to share what I'm seeing in the business today and update you on the strategy that's underway and how it's laying the foundation for long-term growth. Let me start with a quick overview of our Q1 financial results that Stephen will take you through in more detail. We delivered revenue within guidance and adjusted EBITDA came in above expectations, even with softer hardware volumes. While revenue was impacted by some delayed carrier mobile program promotions and FWA orders, gross margin held strong on the favorable revenue mix. And importantly, we invested in key product and growth initiatives without compromising cost discipline as evident in the strong adjusted EBITDA results. Before I move on to strategy and execution, I want to share one of my key initiatives that we successfully executed in Q1. Inseego has a legacy of leading in wireless innovation and an exceptional team of industry-leading engineers in cellular modem and antenna technology. At Mobile World Congress in Barcelona this past March, we were the first OEM in the world to make a 5G advanced 3GPP release 18 data call with the new Qualcomm DragonWin Gen4 Elite FWA platform in our next generation cellular router. This accomplishment is a testament to Inseego's superior engineering capability, our strong partnership with Qualcomm, and our commitment to pioneer the latest and greatest in wireless technology. I am incredibly proud of the team and their unwavering dedication to make this happen. Our announcement has generated significant interest with carriers who are exploring new monetization opportunities for their network and positioning CGO well for the future. With that, let me pivot to the second topic. Over the course of my first four months with the company, my focus has been on laying the groundwork to implement our new strategy. I'm positioning Insigo to power the next generation of enterprise connectivity through software-defined, high-performance wireless networking solutions. We will position our solution portfolio to support a broad range of use cases across residential, SMB, enterprise, industrial, and IoT, and deliver performance, security, and flexibility at scale. These strategies anchored in wireless broadband, combining our MiFi and fixed wireless access hardware with cloud managed software solutions to deliver the features and capabilities that our end customers need to operate and grow their businesses. To deliver on this mission, I'm driving execution against two strategic vectors that I outlined on our first call in February. First, the execution and scaling of our FWA and MiFi business. And second, accelerating our software and services roadmap to create a full stack solution offering and transform Insigo into a true solutions company. Let's focus on the first strategic vector, execution and scaling FWA and MiFi. My immediate priority is to expand our footprint with large tier one carriers and multiple system operators or MSOs. This is the single largest and most immediate new and large TAM for us to capture. Today, our customer base for MiFi and FWA isn't where it needs to be. We are too concentrated, and that's something that I'm actively working to diversify. I've realigned our FWA and MiFi broad roadmaps to go after new customers and markets. In the last 90 days, we've introduced several new product plans to existing and new customers to accomplish this goal. I spend a lot of time on the road meeting these large customers to share our products and strategy, align business objectives, and prioritize opportunities. There's meaningful opportunity in front of us. of enterprise-grade wireless broadband solutions, and Insigo as a company that will partner with organizations to help them reach their business goals is resonating very well. The combination of our best-in-class hardware, our internally developed Edge Router OS, which is our on-device software, and Insigo Connect SaaS cloud management platform delivered through a dual go-to-market motion is a compelling and differentiated offering. In FWA specifically, there is a strong demand for enterprise-grade solutions for carriers to sell to their S&P and enterprise customers. Additionally, with the MSOs, there is significant opportunity in residential failover, S&P, and enterprise solutions. As we are engaging large carriers with our new MiFi portfolio, I'm getting great feedback on our solutions that can cater to both consumer and enterprise markets. There is a great opportunity to drive consolidation here with a purpose-built product that meets the needs of both markets. We've done a lot of great work this past quarter and have a compelling set of new opportunities that we're working on. Our target continues to be to deliver year-over-year growth in 2025, and we're focused on closing these deals with an engaged set of new carrier customer expansion and MSO opportunities that we have visibility of today. I've also overhauled our supply chain and engineering strategy in the past 90 days, identifying significant opportunities to reduce cost, improve operational efficiency, and enable scale. This also involves ensuring that we have the right ODM and CM partnerships to support our ambition. I spent time with key component vendors, ODMs, and manufacturing partners, sharing our strategy, aligning on requirements, and evaluating long-term strategic fits. It has been great to see the excitement from the supplier base to be part of our growth journey. These efforts have already enabled us to expand our MiFi portfolio from premium tier down to mid-tier. As I'm talking about supply chain, it makes sense to pause for a moment to discuss the global tariff and macroeconomic environment, which remains very fluid. We've taken deliberate steps to mitigate impacts and develop manufacturing optionality to safeguard as best as we can for potential disruptions and unfavorable economic outcomes. Our primary manufacturing sites are based in Taiwan and Vietnam, which reduces our direct exposure to potential U.S.-China tariffs. Additionally, our product's HTS code is currently exempt from tariffs. This situation is evolving constantly, and we are monitoring it very closely. Inseego is an American company with critical intellectual property designed and developed in the United States. With that, I'd like to discuss my second strategic vector, accelerating our software and services roadmap to create a full-stack solution offering. Beyond scaling our FWA and MiFi business, my focus is on evolving Inseego from what has historically been a fairly hardware-centric business to becoming a full solution provider. There are two components to this process. First, Insigo Connect, our device management SaaS platform. At the beginning of 2025, we embarked on a mission to enable APIs for our partners to integrate Insigo Connect into their management platforms. Today, these APIs are already at our partners for testing. This is a huge TAM unlock that is applicable for large carrier MSOs and MSPs, both in the channel and direct. In parallel, we have a resource roadmap to graduate Insego Connect to large enterprise, IoT, and industrial environments. Insego Connect sits on top of our router OS and our Insego design modules, making it a full-stack solution that will deliver extraordinary value to an expanded set of customers and markets later this year and beyond. Second, Insigo Subscribe, our subscriber management platform, is a great solution and a strategic contributor to our broader solution-centric strategy. We have undertaken a new investment and expansion plan on this platform and look forward to updating you more as this moves forward over the coming few quarters. Driving and building on these two SaaS offerings, I look forward to expanding Insigo's annual reoccurring revenue opportunity, growing top-line revenue, and delivering extraordinary value to our customers and partners. To support our strategy, we have been enhancing our team with exceptional talent and expertise across various functions and disciplines. Most recently, we welcomed George Mulhern, former CEO of Cradlepoint, to our board of directors. George's extensive background and leadership experience in shaping the enterprise wireless networking industry will provide tremendous value as we scale and accelerate our transformation into an enterprise solution provider. The dynamics of engineering and manufacturing broadband devices are both cyclical and long-term by nature. Product development and customer purchasing cycles typically span 9 to 12 months. While we've implemented quick and significant adjustments in the last 90 days, the larger impact from them is further out. The key to success lies in the precise execution of aligning our roadmap, strengthening customer engagement, and maintaining disciplined focus. This approach ensures we position ourselves to excel both in the current cycle and those to come.

With that, I'd like to hand it over to Stephen. Thank you, Hope. Hi, everyone. Thanks for joining us.