Boxlight Corporation (NASDAQ:BOXL) Q2 2023 Earnings Conference Call August 9, 2023 4:30 PM ET
Company Participants
Michael Pope - Chairman and Chief Executive Officer
Mark Starkey - President
Greg Wiggins - Chief Financial Officer
Conference Call Participants
Brian Kinstlinger - Alliance Global Partners
Jack Vander Aarde - Maxim Group
Operator
Thank you and welcome to the Boxlight Second Quarter 2023 Earnings Conference Call. By now, everyone should have access to the press release issued this afternoon. This call is being webcast and is available for replay. The remarks today will include statements that are considered forward-looking within the meanings of securities laws, including forward-looking statements about future results of operations, business strategies and plans, customer relationships, market trends and potential growth opportunities. In addition, management may make additional forward-looking statements in response to your questions.
Forward-looking statements are based on management’s current knowledge and expectation as of today and are subject to certain risks and uncertainties and may cause the actual results to differ materially from the forward-looking statements. A detailed discussion of such risks and uncertainties are contained in the company’s most recent Form 10-K, Form 10-Q and other reports filed with the SEC. The company undertakes no obligation to update any forward-looking statements.
On this call, management will refer to non-GAAP measures that when used in combination with GAAP results provide additional analytical tools to understand the company’s operations. The company has provided reconciliations to the most directly comparable GAAP financial measures in the earnings press release, which will be posted on the Investor Relations section of the company’s website at boxlight.com.
And with that, I will hand the call over to Boxlight’s Chairman and Chief Executive Officer, Michael Pope.
Michael Pope
Hello, everyone and thank you for joining our Q2 earnings call. After my remarks, you will also hear from Mark Starkey, our President and Greg Wiggins, our Chief Financial Officer.
For the second quarter, we delivered $47 million in revenue, $18 million in gross profit, and $5.4 million in adjusted EBITDA. With softer demand across the industry, our revenues declined by 21% over Q2 2022. However, our gross profit improved by 6% and adjusted EBITDA improved by 4%. Our strong profitability was largely a result of our record gross profit margin. For the second quarter, we reported 30% in gross margin, an increase of 970 basis points over Q2 2022.
Our balance sheet also improved during the quarter. As of June 30, we reported $65 million in working capital, including $60 million in cash and $38 million in inventory. Our debt balance at quarter end was $52 million. Subsequent to quarter end, we paid down our debt facility by an additional $3 million resulting in a current debt balance of approximately $49 million. We are revising our revenue guidance for the second half of 2023 and now expect to deliver $60 million for the third quarter and $110 million in revenue for the second half of the year.