Jesse Sobelson

Jesse Sobelson inquired about the significant decrease in churn and the sequential increase in mobile subscribers, asking for the main factors driving this improvement, such as multiplay strategy, increased digital engagement, or specific retention initiatives. He also asked about the implications of VEON's transition to an independent tower ownership model for Kyivstar's operational flexibility, costs, and balance sheet.

Answer

Oleksandr Komarov, CEO of Kyivstar Group, attributed the customer base dynamics to an overall market decline from reduced double SIM penetration and the growth of multiplay customers within Kyivstar, driven by digital service engagement, which now represents over 30% penetration and contributes more than 45% of total revenue. Kaan Terzioğlu, Chairman of the Board, clarified that Ukraine already has a standalone Ukrainian Tower Company, owned by VEON, operating on arm's length contracts with Kyivstar, and the strategy is for it to serve multiple operators for value creation and efficiencies. Boris Nalshik, CFO, added that Kyivstar's $353 million lease liabilities are predominantly to the Ukrainian Tower Company on arm's length terms, and no changes are expected due to ownership shifts.

Jesse Sobelson inquired about the significant decrease in churn rate and the sequential increase in mobile subscribers, asking for the main factors driving this improvement, specifically if it was due to the multiplay strategy, increased digital engagement, or particular retention initiatives. He also asked about the implications of VEON's announced transition to an independent tower ownership model for Kyivstar's operational flexibility, potential costs, and balance sheet.

Answer

Oleksandr Komarov, CEO of Kyivstar Group, explained that customer base dynamics reflect an overall market decline due to reduced double SIM penetration, offset by growth in multiplay customers driven by engagement in digital services. Kaan Terzioğlu, Chairman of the Board, clarified VEON's asset-light strategy for towers, noting the Ukrainian Tower Company is a standalone entity serving multiple operators on an arm's length basis. Boris Nalshik, CFO, added that lease liabilities on Kyivstar's balance sheet are predominantly to the Ukrainian Tower Company, and no changes are expected due to any ownership shifts.

Jesse Sobelson asked about the motivation behind choosing a SPAC structure for Kyivstar's public listing, VEON's future ownership stake, and how the company balances liquidity with maintaining control of the asset.

Answer

CEO Kaan Terzioğlu explained that the De-SPAC process was chosen for deal certainty and speed, championing the 'Invest in Ukraine Now' initiative. He noted Kyivstar's successful NASDAQ listing at 2.3 times its net equity value. VEON is open to further diluting its nearly 90% stake to allow more Ukrainian and international investors to participate in Kyivstar's growth.

Jesse Sobelson inquired about VEON's strategic rationale for listing Kyivstar via a SPAC structure and the company's future intentions regarding its nearly 90% ownership stake, balancing liquidity generation with maintaining control.

Answer

Kaan Terzioğlu, CEO of VEON, explained that the SPAC process was chosen for deal certainty and speed, aligning with the 'Invest in Ukraine Now' initiative. He affirmed VEON's openness to further dilute its stake to allow more Ukrainian and international investors to participate in Kyivstar's growth.

Jesse Sobelson asked for specifics on what needs to convert to support the guided revenue acceleration and questioned Veritone's differentiation in regulated industries like defense versus platforms like Palantir or Microsoft.

Answer

Co-Founder, CEO, President & Director Ryan Steelberg explained that the 'GoGet' revenue needed to achieve the Q3 guidance is the smallest it has ever been, with many opportunities already contracted. He highlighted Veritone's differentiation through its model-agnostic aiWARE platform, which manages the full end-to-end data stack, and its unique ability to tokenize unstructured audio and video at massive scale. Steelberg also noted the platform's flexibility to be deployed in secure, air-gapped environments, a key advantage in regulated sectors.

Jesse Sobelson of D. Boral Capital asked a broader question about how Veritone is balancing R&D investments for the accelerating VDR business against its profitability targets. He also asked what key milestones, beyond converting the backlog, would define success for VDR through the end of the year.

Answer

Executive Ryan Steelberg responded that VDR leverages the existing aiWARE platform, so significant new capital investment is not immediately required, allowing the company to generate revenue from prior investments. Key milestones for VDR success include expanding beyond existing data assets, which has been achieved, and representing both the sell-side (IP owners) and buy-side (hyperscalers). A critical upcoming milestone is demonstrating the ability to sell the same data asset to multiple buyers, which he noted is very close to being achieved. He also highlighted the expansion into new data types like security and public service data.

Jesse Sobelson of Debora Capital asked for specific business catalysts driving the company's growth inflection beyond the anniversary of consumption headwinds, and inquired about the expected timeline to reach cash operating breakeven and long-term profitability targets.

Answer

Executive Ryan Steelberg identified the Veritone Data Refinery (VDR) and the public sector as the primary growth drivers, noting VDR is exceeding expectations with major contracts already secured. He also mentioned the company is actively deploying solutions into Department of Defense facilities. Executive Michael Zemetra projected that the company could reach breakeven in the second half of 2026.

Jesse Sobelson of D. Boral Capital inquired about the industrial pipeline, asking for details on customer traction and the timing of revenue impact. He also asked about the defense vertical, specifically regarding the new autonomous drone solution, targeted agencies, and timelines for prototypes.

Answer

CEO Sumit Sharma detailed the industrial focus on AGV/AMRs with a retrofittable 'bolt-on' solution for existing forklift fleets. CFO Anubhav Verma added that revenues from this vertical are expected in the second half of 2025 and into 2026. Regarding defense, Sharma and CTO Glen DeVos explained that the planned drone demonstrator will showcase capabilities like autonomous navigation in GPS-denied areas and real-time map sharing to attract partnerships, leveraging existing sensor fusion and perception software.

Jesse Sobelson of D. Boral Capital asked if MicroVision is pursuing equity investments through strategic defense alliances and whether the defense vertical represents an incremental opportunity on top of the existing $30-$50 million revenue outlook. He also sought to clarify the types of commercial arrangements being considered.

Answer

CFO Anubhav Verma stated that the company is currently focused on commercial arrangements rather than equity investments in the defense sector. He confirmed that the $30-$50 million revenue outlook is driven primarily by the industrial vertical and that any revenue from defense would be incremental. Verma elaborated that defense contracts would likely involve ED&T (engineering, design, and testing) revenue, analogous to NRE payments, and that the company is also exploring monetization of its AR intellectual property through various partnership structures.

Jesse Sobelson sought clarification on the ZF manufacturing agreement, asking about the $30-$50 million figure. He also requested an update on realistic timelines for automotive RFQs converting to revenue and inquired about the company's strategy regarding potential M&A to accelerate growth in perception solutions.

Answer

Chief Financial Officer Anubhav Verma clarified the $30-$50 million is the anticipated customer demand over 12-18 months, for which MicroVision has secured production capacity from its partner ZF. On automotive RFQs, CEO Sumit Sharma and CTO Glen DeVos explained that timelines are elongating as OEMs reformulate their ADAS strategies, delaying decisions. Regarding M&A, Sumit Sharma noted that while the company has a mature perception core and prefers organic growth, it remains open to strategic acquisitions that could accelerate customer programs.

Jesse Sobelson asked for an update on international expansion, inquiring how international markets have performed recently and if there was specific interest in any particular geographies.

Answer

CEO Jeff Korn responded that international expansion continues to perform well. He highlighted that the migration to Oracle Cloud Infrastructure (OCI) makes physical location almost irrelevant, allowing the company to easily open a data center in any country with a single customer instance. While they can expand anywhere, the primary focus remains on Europe and Australia.

Jesse Sobelson asked about the apparent discrepancy between a rising gross backlog and a declining next-12-months revenue recognition from that backlog, as well as trends in average revenue per user (ARPU) and any new large contract signings.

Answer

CFO Ron Vincent explained the backlog dynamic is due to typical Q1 seasonality in new sales bookings. COO Doug Gaylor and CFO Ron Vincent provided ARPU figures, with retail at ~$20/user and software solutions at $64.25. CEO Jeffrey Korn confirmed no new 7-figure contracts were signed in the quarter.

Jesse Sobelson asked about Crexendo's capital allocation priorities for its nearly doubled cash reserves, inquiring about acquisitions, R&D, or shareholder returns. He also requested quantification of client migrations from competitors like Cisco and Microsoft.

Answer

CEO Jeffrey Korn stated that acquisitions, including smaller AI firms, and share repurchases are all being considered, noting that the valuation gap for potential M&A targets is narrowing. President & COO Doug Gaylor added that in 2024, Crexendo onboarded 7 Microsoft Metaswitch and 3 Cisco BroadSoft licensees, highlighting a strong pipeline driven by market disruption and the stickiness of these new customers.

Jesse Sobelson of D. Vorel Capital asked how the hybrid model complements the fully electric VX4 in the market strategy and what key technical learnings came from recent wing-borne flight tests.

Answer

CEO Stuart Simpson and CCO Michael Cervenka explained the hybrid's complementary role. Simpson highlighted the significant military opportunity for the only European eVTOL player, while Cervenka noted the hybrid targets longer-range missions and helicopter displacement, avoiding cannibalization of the short-range electric market. Simpson added that the main technical learning from flight tests was that the aircraft's design is 'brilliant' and performed exactly as modeled, de-risking the path to full transition.

Jesse Sobelson of D. Vorel Capital asked how the hybrid aircraft complements the all-electric model in the broader market strategy and what significant technical learnings from recent wing-borne tests will influence the final certified VX4 design.

Answer

CEO Stuart Simpson and CCO Michael Cervenka explained the hybrid and electric models are complementary. The electric VX4 targets short-range commercial routes, while the hybrid addresses longer-range missions, helicopter displacement, and a wide spectrum of defense applications. Regarding test learnings, Simpson stated the primary takeaway was that the aircraft's design is 'brilliant' and performed exactly as modeled, validating the concept and keeping them on track for certification.

Jesse Sobelson of D. Vorel Capital asked how the hybrid aircraft complements the fully electric model in the broader market strategy. He also inquired about the most significant technical learnings from the recent wing-borne flight tests and their influence on the final certified design.

Answer

CEO Stuart Simpson and Chief Commercial & Strategy Officer Michael Cervenka explained the hybrid model is highly complementary, targeting the significant defense market and longer-range commercial routes, such as helicopter displacement, without cannibalizing the short-range urban and regional missions of the all-electric version. Simpson stated the key learning from flight tests was that the aircraft performed 'brilliantly' and exactly as modeled, validating the design and keeping the program on track for full transition without requiring design changes.

Jesse Sobelson from D. Boral Capital asked for more detail on the second-half financial outlook, questioning if Q3 and Q4 would be similar given the strong annual guidance. He also inquired if the strong working capital performance in the quarter was seasonal or a sustainable source of cash flow.

Answer

President & CEO Brady Murphy stated that financial activity in Q3 and Q4 is expected to be relatively similar, though not at the record pace of the first half. SVP & CFO Elijio Serrano attributed the strong cash from working capital to collections from a large CS Neptune project and seasonality in Northern Europe, but affirmed that he still expects to increase free cash flow from the base business in the second half of the year.

Jesse Sobelson from Boral Capital Management requested clarification on the first-half 2025 adjusted EBITDA guidance, questioning the drivers behind the range.

Answer

CFO Elijio V. Serrano and CEO Brady Murphy clarified that the $57 million to $65 million guidance range applies to the entire first half of 2025, not just the second quarter. They identified the timing of large, lumpy deepwater projects as the primary variable determining performance within that range. VP Kurt Hallead added that the spread of the range is consistent with what was initially provided.

Jesse Sobelson requested more details on the PureFlow electrolyte business with Eos Energy, specifically regarding production capacity and the anticipated impact on margins.

Answer

CFO Elijio Serrano detailed the business's evolution from selling PureFlow (high-purity zinc bromide) to blending the full electrolyte for Eos. He confirmed that TETRA has expanded its West Memphis facility and is now prepared to meet Eos's demand as it ramps up production. While declining to provide specific figures, he stated the margins are expected to be consistent with those in the oil and gas sector.

Jesse Sobelson from D. Boral Capital Management sought confirmation that the lower Q2 revenue guidance was due to recent divestitures. He also asked for an update on the pro forma balance sheet, including cash from the TimeBase sale and the current debt level, and inquired about the Board's strategic review process.

Answer

CFO and Chief Investment Officer Jon Slabaugh confirmed the sequential decline in Q2 revenue guidance is solely attributable to the divestitures of Dragonfly and Oxford. He also noted the TimeBase sale would generate approximately $6.5 million, with about half used for debt reduction. CEO Joshua Resnik added that while the Board is always considering options to maximize shareholder value, the majority of portfolio divestitures are likely complete.

Jesse Sobelson of Craig-Hallum Capital Group inquired about the initial customer adoption rates and feedback for the new PolicyNote platform, and also asked about the company's future target leverage ratio and the timeline to achieve it.

Answer

President and CEO Josh Resnik addressed the PolicyNote question, stating that while specific adoption numbers are not disclosed, the company is seeing strong engagement with the platform's AI features and receiving positive qualitative feedback. CFO and CIO Jon Slabaugh responded on leverage, explaining the goal is to reduce it to the 2x to 3x range over the foreseeable future by growing EBITDA and paying down debt.

Jesse Sobelson asked about FiscalNote's medium-term target capital structure, specifically regarding the net debt-to-EBITDA ratio and the strategy to achieve it. He also followed up on the customer reception and recent developments for the company's new AI-powered Copilot products.

Answer

Jon Slabaugh, CFO and Chief Investment Officer, addressed the capital structure, stating the company is focused on reducing its overall cost of capital and will continue to find ways to deleverage to enhance long-term equity value. Joshua Resnik, President and COO, discussed the AI Copilots, noting strong customer uptake and positive engagement metrics for the Global Intelligence Copilot and valuable learnings from the Policy Copilot that are being integrated into core products.

Jesse Sobelson of Water Tower Research inquired about the revenue timing for the first solid-state circuit breaker (SSCB) design win, the number of additional SSCB customers in evaluation, the potential for more design wins in 2025, and the timeline for a funded program with Stellantis for EV contactors.

Answer

Executive Timothy Burns clarified that the projected 'several hundred thousand' in revenue from the first design win is for the first 12 months of the customer's product launch, not just H2 2025. He also noted over half a dozen large companies are evaluating the technology for SSCBs, with typical industrial design cycles around one year. Executive R. Brdar confirmed the company is targeting more design wins in 2025 and expects to receive funding from the new Stellantis EV contactor program during 2025.

Jesse Sobelson of D. Boral Capital inquired about the expected price point for lidar solutions in OEM negotiations and asked about the company's guidance on the timeline from the ramp of Apollo B-sample shipments to commercialization in production vehicles.

Answer

CEO Matthew Fisch addressed pricing by stating that for high-performance, next-generation lidar, the price would be 'well below $1,000,' potentially in the '$500 or in that range' at scale, noting their Tier 1 partnership provides significant supply chain leverage. Regarding the commercialization timeline, executive Conor Tierney stated that the company has not provided long-term guidance. However, Matthew Fisch added that the typical automotive development cycle is two to three years after a contract is awarded.

Jesse Sobelson asked for an updated timeline on bringing the new helium assets online and inquired about the company's M&A strategy, specifically whether the long-term plan is to become a pure-play industrial gas company or to retain certain oil and gas assets.

Answer

CEO Ryan Smith stated that full cycle production-to-sales for the helium project is anticipated around the fourth quarter of the following year, contingent on drilling 3-5 wells and constructing a processing plant. He confirmed the ultimate goal is to create a pure-play industrial gas platform by opportunistically divesting non-core E&P assets over time, while future M&A will focus on expanding the industrial gas business rather than acquiring more E&P properties.

Jesse Sobelson, an analyst, inquired about American Resources' ReElement division, specifically the recent demonstration of 99.5% purity rare earth ore refining, its commercial scale-up timeline, and the technology's applicability to lithium brines.

Answer

Chairman and CEO Mark Jensen clarified that the 99.5% purity meets magnet-grade standards and the demonstration was lab-scale based on a customer's sample, noting efficacy improves with volume. He confirmed they are moving forward with procuring equipment for the Marion facility. Jensen also affirmed the technology is highly applicable to lithium brines, significantly simplifying the DLE process for partners under the 'Powered by ReElement' model.