Earnings Labs

Greenidge Generation Holdings Inc. (GREE)

Q3 2016 Earnings Call· Sun, Nov 6, 2016

$1.12

-5.08%

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Transcript

Operator

Operator

Good day, ladies and gentlemen and welcome to the Q3 2016 Support.com Inc. Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would like to introduce your host for today's conference Michelle Johnson, General Counsel, you may begin.

Michelle Johnson

Analyst

Thank you. Good afternoon, everyone. Joining me here today is Rick Bloom, our, our Interim President and Chief Executive Officer; and Roop Lakkaraju, our Chief Financial Officer and Chief Operating Officer. Before we begin, I would like to remind everyone that our remarks today will include forward-looking statements about our future financial results and other matters. There are a number of risks and uncertainties that could cause our actual results to differ materially from expectations. These risks are detailed in today's press release and the reports we filed with the SEC, all of which can be found through the Investor Relations page of our website at www.support.com. I would also like to point out that we will present certain non-GAAP information on this call. All numbers presented today are non-GAAP unless otherwise stated. The reconciliation of GAAP to non-GAAP financial measures is included with today's press release and also on our Investor Relations webpage. The statements we'll make on this conference call are based on information we know of as of today and we assume no obligation to update any of these statements. With that, I'll turn it over to our Interim President and CEO, Rick Bloom.

Richard Bloom

Analyst

Thanks, Michelle. Good afternoon, everyone thanks for joining our third quarter 2016 earnings conference call. I'll try to make a couple of comments and then I'll turn the call over to Roop who will discuss the quarter in more detail. As you know, I was elected by the Board in June of this year and since then, I as well as the rest of the Board have been working closely with the management team to more deeply understand the business and it's potential. I look forward to working with the entire team and the Support.com community and I'm excited about the prospects with the business and for delivering some shareholder value. I also look forward to speaking with all of you over the coming weeks as I get a little bit more situated in my new role. And with that, I'm going to turn the call over to Roop. Roop?

Roop Lakkaraju

Analyst

Thank you, Rick. Total revenue for Q3 was $15.5 million compared to $17.9 million in Q3 2015 and $14.9 million in Q2 2016. Services revenue for the quarter was $14.2 million compared to $16.6 million in Q3 of 2015 and $13.6 million in Q2 2016. Sequentially, services revenue increased as revenue from Comcast was higher due to onetime for more updates, they were pushed out to their wireless gateway subscribers which resulted in slightly higher call volume, as well as strength in our Office Depot as attached sales. The year-over-year decline is primarily due to Comcast customer experience improvement efforts. Software and other revenue was $1.4 million in Q3 2016, up from $1.3 million and in both Q3 2015 and Q2 2016. The Q3 2016 revenue mix was 91% services and 9% software compared to 93% and 7% in Q3 2015 and 91% and 9% in Q2 2016. In Q3 Comcast represented 60% of our total revenue and Office Depot represented 15%. I want to take a moment to provide some further detail around the third quarter's activity. The two services wins we now extend are July 2016 earnings conference call have launched as expected in Q3 2016. First, Sears; as a reminder this is a bundled offering combined with the Sears extended warranty to offer whole home hardware and tech support coverage. This is a new offering to the marketplace, it will start small with subscriptions expected to grow overtime. Sears is pleased with initial customer reaction to the offer. The second is target which was the large national retailer not named but announced on our July 2016 conference call. Targets 'My Target Tech' and program is now fully transitioned to Support.com, a short 69 days after selection. Our technology capabilities were an important differentiator in this competitive bid…

Operator

Operator

[Operator Instructions] And our first question comes from the line of Bill Fadgen [ph] from Craig-Hallum. Your line is now open.

Unidentified Analyst

Analyst

I'm here for Chad, thanks for taking the question. I guess first one, probably for Rick; real high level I guess -- you can roll -- I guess, can you kind of outline what the overall strategic plan is in your eyes as of right now? And related to that, have you been able to speak with some of your key customers, key partners, of course Comcast being one, about kind of the new strategy in your relationship with them?

Richard Bloom

Analyst

To answer your second question first, no; I've been here three days, I haven't had a chance to talk to the customers yet, although clearly, will undertake that effort shortly. And as for the change in strategy; I don't think or your question has to -- is there a change in strategy, I don't think any decisions with respect to that have been made. We're still trying to figure out exactly how we can help build the value and bring some of the pieces together in a way that is good for the business and so I don't think there is any big moves to talk about things are moving the way they were before.

Roop Lakkaraju

Analyst

And Joe just to add -- just a couple of additional comments related to the customers; Rick -- that we were coordinating potential customer conversations with Rick and our primary contacts at those customers. Those of us who do have lead relationships at those customers have been in contact with them; for example, myself with Comcast and others within our customer base and our executive ranks. So I just wanted to add that as well.

Richard Bloom

Analyst

We've been proactive.

Roop Lakkaraju

Analyst

That's right.

Unidentified Analyst

Analyst

Okay. But I guess based on the conversations you've had so far, I mean there are no like meaningful change -- just kind of keeping in touch and you wanted -- I guess to keep right in front of them but no meaningful change, no meaningful conversations yet?

Roop Lakkaraju

Analyst

Yes, there is no change in the business, I mean if you think about the guidance and the comments that we prepared today around -- the traction we've got around Cloud and that initial enterprise customer and the second enterprise customer, as well as the resetting the annual target brand of recurring revenue, as well as the progress on the services side where we continue to be focus on executing what we've been doing.

Unidentified Analyst

Analyst

And then I guess one quick follow-up; Rick, it looks like your title is Interim President and CEO, I assume there is a search underway for a permanent CEO. Are you looking internal/external and are there any specific qualities or specific background or characteristics that you're really trying to key in on?

Richard Bloom

Analyst

So far I'm not sure I can answer the question clearly because I think we're dealing with some things that happened really quickly here; and so we're still getting our arms around exactly what that might look like and what we need to do.

Unidentified Analyst

Analyst

All right, that will be all for me for now, thanks.

Richard Bloom

Analyst

Okay, thanks Jeff.

Operator

Operator

Thank you. And I would like to turn the call back over to Rick Bloom for closing remarks.

Roop Lakkaraju

Analyst

Yes, we just appreciate everybody. This is Roop Lakkaraju, I just want to say thanks for joining our call today. Thank you.

Richard Bloom

Analyst

Thanks, everybody.

Operator

Operator

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program. You may now disconnect. Everyone have a great day.