View, Inc.

Greetings and welcome to VU Inc's third quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Samuel Meehan, head of investor relations at VU. Thank you, Samuel. You may begin.

Good afternoon, everyone, and welcome to VU's third quarter 2023 earnings call. I am Samuel Meehan, Head of Investor Relations at VIEW. I'm here with Dr. Raul Mulfuri, our CEO, and Amy Reeves, our CFO. Before we begin, I'd like to remind you that after market closed today, VIEW issued a press release announcing its third quarter 2023 financial results, which you may access in the investor relations section of VIEW.com. As today's discussion includes forward-looking statements, please refer to our press release for a discussion of factors that could cause the company's actual performance to differ materially from those forward-looking statements. These forward-looking statements involve risks and uncertainties, many of which are beyond our control and could cause actual results to differ materially from our expectations. These forward-looking statements apply as of today and we undertake no obligation to update these statements after our call. For a more detailed description of certain factors that could cause actual results to differ, please refer to our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings, including quarterly reports on Form 10-Q. I would also like to remind you that during the call, we will discuss certain non-GAAP measures related to views performance. You can find the reconciliation of these measures, the nearest comparable GAAP measures, in the press releases. Unless otherwise stated, our comments during the call refer to non-GAAP results of operations. Now, I will turn the call over to our CEO, Dr. Rao Mopuri. Rao, over to you.

Thank you, Samuel, and thank you all for joining us this afternoon. During the call, we will address the results in the quarter, but also uplevel the conversation to provide context around where we are and where we're going. Over the past year, with the dual realities of challenges in the real estate industry, and the capital markets, we've continuously evolved our product, our operations, and our market approach to sustain our business, serve our customers, and importantly, continue to build long-term value at VIEW. I'm grateful for the support and belief from our customers and capital partners, and I'm proud of the VIEW team for focusing on the mission, being learning-oriented, being nimble and resilient, and delivering key outcomes for our customers and the company. The Q3 results are a testament to that. Now let me provide a quick recap of the key announcements and results we reported today. First, in the third quarter, we showed continued progress on our path to profitability and significantly improved gross margin. We grew revenues 61% year over year in the quarter. Gross margin was positive without the impact of the future production outlook adjustments that Amy will describe in detail. Second, we're executing on our platform on our plan to reduce structural fixed costs and to lower the required revenue break-even points of the business. The third quarter results show a steep decline year over year in both our factory fixed costs as well as our operating expenses. Combining the improved gross margins and lower structural fixed costs, we're making significant progress in reducing our quarterly cash burn. Going forward, we remain laser focused on cash management and growing the business to achieve profitability. Third, in October, we were pleased to announce a senior secured credit facility from an investor consortium comprised of strategic real estate investors, Cantor Fitzgerald, RXR, Anson, and Affinius. These strategic investors are leaders in the real estate industry, and we're excited to partner with them to unlock the next stage of news growth. Let's discuss our journey to gross margin in a little more detail. We made significant improvement to our gross margins year over year. This was a result of VUE team's focus, hard work, and continuous improvements made in several key aspects of our business. Anyone who knows a manufacturing-oriented hardware business with a new product category knows that this is a major inflection point in the business and proves out the unit economics, which in turn forms a basis for profitable growth in the future. For this milestone to materialize, several things needed to be delivered. First, continuous improvements in product architecture and material selection. Our fourth generation product has all the key characteristics needed to scale to a high volume mainstream product. Second, delivering on the key factory metrics while optimizing production and delivery costs and meticulously managing the supply chain. Third, continuing to scale the business with high quality profitable projects. And fourth, unlocking value for both our customers and VIEW with our fully integrated smart building platform and the investment tax credit. This journey is never a straight line to success, given all the inputs and moving parts, but the trend line is clear. Our financial performance continues to improve with scale, and this provides confidence towards a path to profitability. As we zoom out and look at the cost structure of the entire business, we're committed to reducing quarterly cash burn and getting the business to cash flow positive. We took additional actions in October to further lower our structural fixed costs, including reductions in factory fixed costs and operating expenses. These actions are expected to reduce our cost structure below the already realized year-over-year savings that were reported in our Q3 2023 results. We're able to make these cost improvements because we have made great progress to date on the product, our market approach, and the factory operations. On the product, as I've mentioned before, we completed the release of our mainstream Gen 4 product. We recently completed the upgrade of ViewNet and the software, and we fully released our multifamily offering. The maturity of the product means we're able to reduce R&D spend substantially. On the factory side, we're performing well across key operating metrics, which allow us to reduce overhead and production costs. We are delivering exceptional products to our customers with on-time shipments to large flagship projects across the country. As part of our focus on reducing quarterly cash burn, we made the strategic decision to rationalize our capacity ramp until we are cash flow positive. Consistent with this rationalized capacity plan and greater focus on our strategic accounts, and given the current demand dynamics, we're updating our full-year revenue outlook to be in the range of 110 million to 120 million, representing 13% year-over-year growth for 2023. Now turning to our customers and the market. While the real estate industry continues to deal with the headwinds of office segment challenges and high interest rates, we see multifamily residential development being a bit more resilient at the macro level. Our dual value proposition of sustainability and delighted users combined with the affordability of smart windows with the investment and tax credit plays well to the needs of the real estate developers in this segment. With these benefits, we continue to make progress in product evolution, awareness, and growth in the multifamily market. Just today, we announced that VUE has been selected for 1890 Cobb Avenue in Brooklyn, New York, developed by RXR. Likewise, developers nationwide are showing interest in VUE to differentiate their portfolios in a crowded market. As we continue to grow in this market, we expect that the multifamily residential segment will be a key driver of demand enabling VUE to reach profitability. With that, I'll hand it over to Amy to cover the financials. Amy, over to you.