Itron IncITRI
Scheduled
Itron Inc Oppenheimer 29th Annual Technology, Internet & Communications Conference
Review the key takeaways and the transcript of this earnings call.
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Key takeaways
- As of the end of Q2, the company shipped about 18 million DAI-enabled endpoints, representing approximately 20% year-over-year growth, though this is still a small percentage of total meters deployed.
- Licensed apps for DAI-enabled endpoints grew nearly 50% year over year, reaching close to 28 million licenses.
- The outcomes backlog exceeded $1 billion of the total $4.4 billion backlog.
- The company increased inventory slightly this quarter and maintains a strong balance sheet with $745 million in cash and about 1.5 billion in liquidity, and 2.3 times leverage.
- The resiliency segment, bolstered by two recent acquisitions (Urban and Locus View), is expected to grow fastest in recurring revenue and contribute positively to earnings per share by the end of the year and be accretive by 2028.
- Gross margins on new DAI endpoints are higher than legacy AMI endpoints, with average selling prices increasing from $80-$90 to $120-$140 per endpoint.
- Pricing escalators indexed to inflation protect margins against component cost increases, including memory pricing.
- The company invests about 9% of revenue in R&D, focusing on growth segments like outcomes and resiliency, and is leveraging AI tools to improve product development efficiency and cycle times.
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