VirTra, Inc. (NASDAQ:VTSI) Q1 2024 Earnings Conference Call May 14, 2024 4:30 PM ET

Company Participants

John Givens - CEO
Alanna Boudreau - CFO

Conference Call Participants

Jaeson Schmidt - Lake Street Capital Markets

Operator

Good afternoon, and welcome to VirTra's First Quarter 2024 Earnings Conference Call. My name is Robert, and I will be your operator for today's call. Joining us for today's presentation are the company's CEO, John Givens; and CFO, Alanna Boudreau. Following their remarks, we will open the call for questions.

Before we begin the call, I'd like to provide VirTra's safe harbor statement that includes cautions regarding forward-looking statements made during this call. During this presentation, management may discuss financial projections, information or expectations about the company's products and services or markets or otherwise make statements about the future, which are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. The company does not undertake any obligation to update them as required by law.

Finally, I'd like to remind everyone that this call will be made available for replay via a link in the Investor Relations section on the company's website at www.virtra.com.

Now, I'd like to turn the call over to VirTra's CEO, Mr. John Givens. Thank you and you may proceed, sir.

John Givens

Thank you, operator, and thank you, everybody for joining us this afternoon. After the markets closed today, we issued a press release that provided our financial results for the first quarter ending March 31, 2024, along with the highlighted business accomplishments. Today, I'll begin by discussing our first quarter performance and strategic achievements, including our progress with the V-XR platform and our military market engagements before handling over to Alanna for a detailed financial review. After that, I'll provide some concluding remarks before we move on to questions and answers.

Our first quarter performance was not where we want it to be. Revenue dipped to $8.1 million, a figure that frankly reflects our current challenges as much as it highlights our potential. While we maintain a strong gross margin of 67%, the decrease in revenue was an indicator that our new sales initiatives need to be accelerated. We are facing external headwinds, notably from cyclical budget decisions and the impact from the U.S. government's continuing resolutions. These are not excuses, but the realities, and we are tackling them head-on.