Dril-Quip, Inc. (NYSE:DRQ) Q4 2023 Earnings Conference Call February 27, 2024 10:00 AM ET

Company Participants

Erin Fazio - Investor Relations

Jeff Bird - President and Chief Executive Officer

Kyle McClure - Vice President and Chief Financial Officer

Conference Call Participants

Eddie Kim - Barclays

Operator

Good morning and welcome to Dril-Quip’s Fourth Quarter and Full Year 2023 Earnings Call. [Operator Instructions] As a reminder, this call is being recorded. At this time, I would like to turn the call over to Erin Fazio, Corporate Finance Director for Dril-Quip. Please go ahead.

Erin Fazio

Thank you, and good morning. We appreciate you joining us on today’s call. An updated investor presentation has been posted under the Investors tab on the company’s website along with the earnings press release. This call is being recorded and a replay will be made available on the company’s website following the call.

Before we begin, I would like to remind you that Dril-Quip’s comments may include forward-looking statements and discuss non-GAAP financial measures. It should be noted that a variety of factors could cause Dril-Quip’s actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements. Please refer to the fourth quarter 2023 financial and operational results announcement we released yesterday for a full disclosure on forward-looking statements and reconciliations of non-GAAP measures.

Speaking on the call today from Dril-Quip, we have Jeff Bird, President and Chief Executive Officer; and Kyle McClure, Vice President and Chief Financial Officer.

I would now like to turn the call over to Jeff Bird.

Jeff Bird

Thank you, Erin and thank you all for joining us today. Dril-Quip delivered strong fourth quarter results, marking a pivotal year with double-digit growth in both annual revenue and adjusted EBITDA, showcasing significant progress towards our longer-term financial, operational and strategic objectives.

Total revenue grew 17% year-over-year and our fourth quarter organic revenue was the highest quarter achieved since pre-pandemic. Net bookings in the quarter were $123 million, an increase of $76 million sequentially and above our expectations for the quarter. There were several notable orders in the quarter. The largest was for subsea production systems or trees for approximately $40 million. Orders for trees, as we’ve mentioned, tend to be very large, discrete events that can shift materially from period to period depending on the customers’ schedules. This project includes three trees plus various accessories, which will be delivered over the next 2 years in Australia.