Inseego Corp. (NASDAQ:INSG) Q4 2018 Earnings Conference Call Transcript

Mar 07, 2019 • 05:00 pm ET


Inseego Corp. (NASDAQ:INSG) Q4 2018 Earnings Conference Call Transcript


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Hello, and welcome to Inseego Corp.'s Fourth Quarter and Full Year 2018 Financial Results Conference Call. Please note that today's event is being recorded. All participants will be in a listen-only mode. (Operator Instructions)

On the call today are Dan Mondor, Chairman and CEO; Steve Smith, Executive Vice President and Chief Financial Officer; Ashish Sharma, Chief Marketing Officer and Executive Vice President of IoT & Mobile Solutions; and John Weldon, Senior Vice President of Enterprise SaaS Solutions.

During this call, 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 Investors 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 a discussion on factors that could cause actual results to differ materially from expectations, please refer to the risk factors described in our Form 10-K, 10-Q and other SEC filings, which are available on our website. Please also refer to the cautionary note regarding forward-looking statements in the section contained in today's press release.

I would now like to turn the call over to Dan Mondor, Chairman and CEO of Inseego. Please go ahead.

Dan Mondor

Thank you, Good afternoon, everyone. It's great to be speaking with you again, and thanks for joining today's call. I'll start with the main headline. We entered 2018 with a very strong fourth quarter performance, including outstanding top and bottom line growth and expanded customer base in North America and worldwide. We believe that the combination of our market leading gigabit 4G LTE and 5G NR innovation and positive industry dynamics will enable us to further extend our leadership position in 2019 and beyond.

I'll start with a few highlights of our recent progress. First, consolidated Q4 results came in at the top end of guidance with very strong revenue growth and record adjusted EBITDA. Q4 revenue grew 11% sequentially and 20% year-over-year. Adjusted EBITDA of $5.8 million, easily met our stated objective of exiting the year with an annualized adjusted EBITDA in the $20 million to $25 million range. Adjusted EBITDA was the highest in nearly a decade and took us above 10% EBITDA margins and is a major step towards our objective of further balance sheet deleverage.

Second, Inseego is addressing the global 5G market opportunity for mobile hotspots and fixed wireless access. So how is that? Our secret sauce is a universal platform architecture for 4G LTE and 5G millimeter wave and sub-6 gigahertz products. Together with our partners, Inseego has become an industry thought leader by showcasing new 5G use cases in numerous live demonstrations. For example, augmented reality for first responders, virtual reality telemedicine, AI robotics and live streaming of 4K video and others. Inseego has real working devices that show attendees can pick up and operate. They're