Q2 2025 iPower Inc Earnings Call
Operator: Good afternoon, everyone, and thank you for participating in today's conference call to discuss iPower's financial results for its fiscal second quarter, 2025, ended December 31st, 2024.
Good afternoon, everyone and thank you for participating in today's conference call to discuss the eye powers financial results for its fiscal second quarter 2025 ended December 31st 2020 for joining US today are I powers, Chairman and CEO, Mr. Lawrence Dann and <unk>.
Operator: Joining us today are iPower's Chairman and CEO, Mr. Lawrence Tan, and the company's CFO, Mr. Kevin Vassily.
Kevin Vassily: Mr. Vassily, please go ahead. Thank you, Josh. Good afternoon, everyone.
<unk> CFO, Mr. Kevin Vasily.
Speaker Change: Mr. <unk>. Please go ahead.
Kevin Vassily: By now, everyone should have access to our fiscal second quarter 2025 earnings press release. which was issued earlier today at approximately 4 or 5 p.m. Eastern Time.
Speaker Change: Thank you Josh good afternoon, everyone.
Speaker Change: By now everyone should have access to our fiscal second quarter 2025 earnings press release.
Speaker Change: Which was issued earlier today at approximately four o'clock P M Eastern time.
Kevin Vassily: The release is available in the Investor Relations section of our website at meetipower.com. This call will also be available for webcast replay on our website. Following our prepared remarks, we'll open the call for questions.
Speaker Change: The release is available in the Investor Relations section of our website at meet I power Dot com. It's.
Speaker Change: This call will also be available for webcast replay on our website.
Speaker Change: Following our prepared remarks, well open the call for questions.
Kevin Vassily: Before I introduce Lawrence, I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. said they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans, strategies, projections, anticipated events and trends, the state of the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, changes, and circumstances that are difficult to predict, and many of which are outside of our control.
Speaker Change: Before I introduce Laurence I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward looking statements under the private Securities Litigation Reform Act of 1995.
Speaker Change: Forward looking statements are neither historical facts, nor assurances of future performance.
Speaker Change: They are based only on our current beliefs expectations and assumptions regarding the future of our business future plans strategies projections anticipated events and trends the state of the economy and other future conditions.
Speaker Change: Because forward looking statements relate to the future theyre subject to inherent uncertainties risks changes in circumstances that are difficult to predict.
Kevin Vassily: Our actual results and financial condition may differ materially from those indicated in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC, including our annual report on Form 10-K, which was filed with the SEC on September 20, 2024. do not place undue reliance on any of the forward-looking statements which are being made only as of the date of this call. except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statement.
Speaker Change: And many of which are outside of our control.
Speaker Change: Our actual results and financial condition may differ materially from those indicated in these forward looking statements.
Speaker Change: These forward looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC, including our annual report on Form 10-K, which was filed with the SEC on September 20th 2024.
Speaker Change: Not place undue reliance on any of the forward looking statements, which are being made only as of the date of this call.
Speaker Change: As required by law the company undertakes no obligation to revise or publicly release the results.
Kevin Vassily: Our presentation today also includes certain non-GAAP financial measures including adjusted net income, EPS, and supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation tables and other important information in the earnings press release and Form 8K we furnished to the SEC this afternoon.
Of any revision to any forward looking statements.
Speaker Change: Our presentation. Today also includes certain non-GAAP financial measures, including adjusted net income EPS as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules, you'll find reconciliation tables and other important information in there.
Speaker Change: Earnings press release and form 8-K, we furnished to the SEC. This afternoon.
Lawrence Tan: With that, I would now like to turn the call over to iPower's Chairman and CEO, Lawrence Tan. Thank you, Kevin, and good afternoon, everyone. We delivered strong results across all key financial metrics in our fiscal second quarter while further enhancing our super sweet plan. Throughout the quarter, we continued to optimize operations and strengthen our presence across both our established and emerging sales channels. We also remain focused on supply chain diversification by exploring new supply relationships beyond our existing network. reinforcing our commitment to build a more resilient and adaptable infrastructure. Our super sweet platform is gaining further momentum as we drive sales growth for partners with innovative product catalogs.
Speaker Change: With that I would now like to turn the call over to <unk>, Chairman and CEO Bardstown parts.
Speaker Change: Thank you Kevin.
Speaker Change: Good afternoon, everyone.
Speaker Change: We delivered strong results across all key financial metrics in our fiscal second quarter, while further enhancing our super suite platform.
Speaker Change: Throughout the quarter, we continued to optimize operations and strengthen our presence.
Ross: Ross, both our established and emerging sales channels.
Ross: We also remain focused on our supply chain diversification.
Ross: Exploring new supplier relationships beyond our existing networks.
Ross: Reinforcing our commitment to build a new more resilience.
Ross: Optical infrastructure.
Ross: Our Super Sweet platform is gaining further momentum as we drive sales growth.
Ross: Our partners with innovative product catalogs.
Lawrence Tan: additionally. The platform offers strategic insights that enhance our operational efficiency and competitive positioning in the market. SuperSweets continued revenue acceleration underscores the value we bring through our expertise in supply chain management.
Ross: Additionally.
Ross: The platform offers strategic insights to enhance our operational efficiency and competitive positioning in the market.
Ross: Super Suites continued revenue acceleration underscores the value we bring through our expertise in supply chain management.
Lawrence Tan: Fulfillment and Immersion Bias. As we advance our pipeline of prospective partners We are focused on scaling super suites capabilities and we anticipate it will grow as a larger share of our overall revenue mix.
Ross: Fulfillment and <unk>.
Ross: Merchandising.
Ross: As we advance our pipeline of.
Ross: Prospective partners.
Ross: We are focused on scaling super suites capabilities, and we anticipate it will grow.
Ross: As a larger share of our overall revenue mix.
Lawrence Tan: this quarter. We took meaningful steps to strengthen SuperSweep by integrating critical functions from value-added partners across logistics, merchandising, and data analytics to optimize our service offering. These enhancements reinforce our commitment to fostering a fully connected ecosystem where all partners collaborate towards a common goal. that is driving sales in both U.S. and international markets. By creating seamless integration across the supply chain, we empower our partners with the tools to expand efficiently, navigate shifty market dynamics, and optimize their operations for long-term success. This collaborative approach positions SuperSuite as a leading comprehensive solution for today's evolving e-commerce and supply chain landscape.
Ross: This quarter.
Ross: We took meaningful steps to strengthen super sweep by integrating critical functions from value added partners across logistics.
<unk>.
Ross: And data analytics to optimize our service offerings.
Ross: These enhancements reinforce our commitment.
Ross: To fostering a fully connected ecosystem, we're all partners collaborate towards a common goal.
Ross: That is driving sales in both U S and <unk>.
Ross: The national market.
Ross: By creating seamless integration across the supply chain, we empower our partners with the tools to expand efficiently navigate shifting market dynamics and optimize their operations for long term success.
Ross: This collaborative approach positions Super Sweet.
Ross: A leading comprehensive solutions for today's evolving e-commerce and supply chain landscape.
Lawrence Tan: We continue to make steady progress with our recently launched SuperSuite Supplier Portal as well. refining its capabilities to enhance supplier collaboration and streamline operations. This platform is designed to optimize supplier interactions by providing data insights, facilitating access to multiple sales channels, improving shipment efficiency, and enables seamless collaboration on merchandising strategies. As part of our ongoing innovation efforts, we are actively researching artificial intelligence applications to further enhance the platform's predictive analytics, automate routine processes, and provide smarter decision-making tools. Integrating these advanced features will enable us to foster stronger engagement between our suppliers, internal teams, and partners while driving greater efficiency across the supply chain.
Ross: We continue to make steady progress with our recently launched Super Sweet supplier portal as well.
Refining is capabilities.
Ross: Supplier collaboration and streamline operations.
Ross: This platform is designed to optimize supplier interactions by providing data insights facilitating access to multiple sales channels improve leading shipment by shipment efficiency and enables seamless collaboration on merchandising strategies.
Ross: As part of our ongoing innovation efforts.
Ross: We are actively researching artificial intelligence applications. So further enhanced our platform as a predictive analytics also made a routine processes and provide smarter decision making tools.
Ross: Integrating these advanced features will enable us to foster stronger engagement between our suppliers internal teams and partners, while driving greater efficiency across the supply chain.
Lawrence Tan: We have always prioritized diversifying our revenue streams. as evidenced by the launch of SuperSuite and our continued expansion into new sales channels like AliExpress. Our approach to channel expansion is strategic. focusing on strengthening our presence. on our established channels like Amazon, where we have a proven sales track record and well-defined operational process. We, at the same time, we continue to build a momentum on other channels like TikTok. which offer access to a younger demographics and a growing social commerce space. and Teemu which unlocks new avenues for brand exposure and sales growth in rapidly expanding marketplaces.
Ross: We have always proud highest prioritized diversity in.
Ross: Our revenue streams.
Ross: Emitters by the launch of a Super Sweet and our continued expansion into new sales channels like aliexpress.
Ross: Our approach to channel expansion is strategic.
Ross: Focusing on strengthening our presence.
Ross: On our established channels like Amazon, where we have a proven sales.
Ross: Record and well defined operational processes.
Ross: We at the same time, we continue to build momentum on other channels like tick tock.
Ross: Which offer access to a younger demographics and the growing social commerce space and.
Ross: And Tmall, which unlocks new revenue avenues.
Ross: <unk> four brand exposure and our sales growth and rapidly expanding marketplaces.
Lawrence Tan: Our commitment to expanding across these diverse channels underscores our commitment to providing a comprehensive multi-channel solution that enables our partners to reach and engage customers both in the U.S. and globally with greater efficiency and scale. At the operating level, our ongoing efforts to optimize our cost structure have delivered meaningful results as we continue to drive gross margin expansion and operating leverage in our business.
Ross: Our commitment to expanding across these diverse channel and this causes our commitment to providing a comprehensive multichannel solution that enables our partners to reach and engage customers both in the U S and globally with greater.
Ross: Efficiency and scale.
Ross: At the operating level, our ongoing efforts to optimize our cost structure have delivered meaningful results as we continue to drive gross margin expansion and operating leverage in our business.
Lawrence Tan: We also have officially shuttered our legacy commercial hydroproducts business, as we are now focused on our core competency as a data-driven, technology-driven consumer products and services company. As we have mentioned before, we are continuing to benefit from a healthier supply chain, which enables us to operate with lower levels of inventory than lead times have normalized compared to recent years. As of December 31st, 2024, we reduced our inventory level by approximately 12% compared to June 30, 2024. As we often say, we remain committed to enhancing operational efficiency and building a more resilient, adaptable supply chain. A key part of the strategy is our ongoing effort to diversify our supplier network, reducing dependency on any single region, and strengthening our ability to navigate global supply chain fluctuations.
Ross: We also have efficiently shuttered, our legacy commercial hydroponics business.
Ross: We are now focused on our core competency as a data driven technology, driven consumer products and services company.
Ross: As we have mentioned before we are continuing to benefit from a healthier supply chain, which enables us to operate with lower level of inventory.
Ross: Times have normalized compared to recent years.
Ross: As of December 31, 2024, we reduced our inventory level by approximately 12% compared to June 32024.
Ross: As we often say we remain committed to enhancing operational efficiency and building a more resilient adaptable supply chain.
Ross: A key part of our strategy is our ongoing effort to diversify our supplier network.
Ross: <unk> dependency on any single region, and strengthening our ability to navigate the global supply chain fluctuations.
Lawrence Tan: Last quarter, we took a significant step forward by expanding our manufacturing base to Vietnam. Reinforcing sustainability of our resource strategy for both customers and partners. As we further diversify and begin generating sales with these new suppliers We expect to see many more benefits. including lower production and logistic costs. our optimized supply chain will also be able to react more quickly.
Ross: Last quarter, we took a significant step forward by expanding our manufacturing base to Vietnam.
Ross: David.
Ross: Our sourcing strategy for most customers.
Ross: And.
Ross: Yeah.
Ross: Okay.
Ross: And in general being shot.
At least.
Ross: Yes.
Ross: We expect to see before Dennis.
Ross: Including lower production and logistic costs.
Ross: Our optimized supply chain.
Ross: We'll still be able to react quickly.
Lawrence Tan: involved in microchains. using our exposure to elevated lead times, costs, and potentially import restrictions. These enhanced efficiencies will enable us to offer more competitive pricing. strengthening our margins. and position iPower for long-term sustainable growth. We plan to continue identifying new supplier partnerships to further optimize our cost structure and ensure a robust, flexible supply chain. that supports our growing business. Looking ahead, we are well positioned to build on our momentum and execute our strategical initiatives. We will continue expanding our sales channels while further investing in SuperSuite to enhance its capabilities and drive greater value for our partners.
Ross: And both the macro changes.
Ross: Using our exposure to the lead times.
Ross: And potential.
Ross: Restrictions.
Ross: These efficiencies will enable us to offer more competitive pricing.
Ross: Strengthen our margins.
Ross: Positioning <unk> for long term sustainable growth.
Ross: We plan to continue identifying new supplier partnerships to further optimize our cost structure.
Ross: Sure <unk>.
Ross: Bust flexible supply chain.
Ross: That supports our growing business.
Ross: Looking ahead, we are well positioned to build on our momentum and execute our strategical initiatives.
Ross: We will continue expanding our sales channels, while further investing in super suite to enhance its capabilities and drive greater value for our partners.
Lawrence Tan: We are committed to strengthening every aspect of our supply chain, ensuring a resilient, efficient infrastructure that supports the evolving demand of e-commerce, supply chain management, and logistics. By leveraging our deep expertise in supply chain optimization, warehousing, and merchandising, we are well-positioned to drive long-term growth, both in iPower and our partners.
Ross: We are committed to strengthening every aspect of our supply chain, ensuring a resilient efficient infrastructure that supports evolving demand of e-commerce supply chain management and logistics.
Ross: By leveraging our deep expertise in supply chain optimization warehousing and merchandising.
Ross: Well well positioned such as long term holds.
Lawrence Tan: we move forward. We will stage our adaptation to market dynamics and catalyze potential M&A opportunities. as we inform our position as a leader in end-to-end applied solutions.
Ross: Both power and our partners.
Ross: We look forward.
All statements child.
Ross: And to market dynamics.
Ross: Kirk lives.
Ross: So M&A option fees.
Ross: As in <unk>.
Ross: Okay.
Ross: And and applied facilities.
Kevin Vassily: I will now turn the call over to our CFO, Kevin Vassily, to discuss our financial results in more detail. Thanks, Lauren. Unless referenced otherwise, all variance commentary is in comparison to the year-ago quarter. So, I'll dive right into the fiscal Q2 results. Total revenue in the fiscal second quarter of 2025 increased 14% to $19.1 million. to 16.8 million. The increase was driven primarily by growth in our super-sweet supply chain business. as well as greater product sales to our largest channel partners. Gross profit in the fiscal second quarter of 2025 increased 15%. 8.4 million compared to 7.3 million in the same quarter of fiscal 2024.
Ross: I will now turn the call over to our CFO rapidly to confuse our structural risk in mortgage.
Ross: But.
Speaker Change: Thanks Laurent.
Speaker Change: Well unless I referenced otherwise all variance commentary is in comparison to the year ago quarter. So I'll dive right into the fiscal Q2 results.
Speaker Change: Total revenue in the fiscal second quarter of 2025 increased 14% to.
Speaker Change: To $90 1 million.
Speaker Change: <unk> to $16 eight.
Speaker Change: 8 million the increase was driven primarily by growth in our Super Sweet supply chain business.
Speaker Change: As well as greater product sales to our largest channel partner.
Speaker Change: Gross profit in the fiscal second quarter of 2025 increased 15% to.
Speaker Change: So $8 4 million compared to $7 3 million in the same quarter of fiscal 2024.
Kevin Vassily: As a percentage of revenue, gross margin increased 40 basis points to 44 percent. compared to 43.6% in the year-ago period. The increase in gross margin was primarily driven by improved pricing through key supplier negotiations. Total operating expenses for fiscal Q2 improved 22% to $7.7 million, compared to $9.9 million for the same period in fiscal 2024. Decrease in operating expenses was driven primarily by lower selling and fulfillment expenses related to our largest channel partners. Net income attributable to iPower in the second fiscal quarter improved to $0.2 million, or one cent per share. compared to a net loss attributable to iPower of $1.9 million.
Speaker Change: As a percentage of revenue gross margin increased 40 basis points to 44%.
Compared to 43, 6% in the year ago period.
Speaker Change: The increase in gross margin was primarily driven by improved pricing through with key supplier negotiations.
Speaker Change: Total operating expenses for fiscal Q2 improved 22% to $7 7 million.
Speaker Change: Compared to $9 9 million for the same period in fiscal 2024.
Speaker Change: Decrease in operating expenses was driven primarily by lower selling and fulfillment expenses related to our largest channel partner.
Speaker Change: Net income attributable to eye power in the second fiscal quarter improved $2 2 million.
Speaker Change: <unk> per share <unk>.
Speaker Change: Compared to a net loss attributable to <unk> of $1 9 million or a loss of <unk> <unk> per share for the same period in fiscal 2024.
Kevin Vassily: or a loss of $0.06 per share for the same period in fiscal 2024. Moving to the balance sheet, cash and cash equivalents were $2.9 million as of December 31st, 2024. compared to $7.4 million as of June 30, 2024. As a result of our debt pay down, total debt was reduced by 31% to $4.4 million, compared to $6.3 million as of June 30, 2024. Lawrence mentioned earlier, we continue to benefit from the optimization initiatives we implemented last fiscal year. reflected by another period of gross margin expansion and improved operating leverage. We've also reduced our debt obligations by nearly $2 million compared to June 30, 2024, reflecting our commitment to strengthening our balance sheet.
Moving to the balance sheet.
Speaker Change: Cash and cash equivalents were $2 9 million as of December 31, 2024.
Speaker Change: Compared to seven 4 million as of June 32024.
Speaker Change: As a result of our debt pay down total debt was reduced by 31% to $4 4 million compared to $6 3 million as of June 32024.
Speaker Change: As Lawrence mentioned earlier, we continue to benefit from the optimization initiatives, we implemented last fiscal year.
Lawrence: Reflected by another period of gross margin expansion and improved operating leverage.
Speaker Change: We've also reduced our debt obligations by nearly $2 million compared to June 32024, reflecting our commitment to strengthening our balance.
Kevin Vassily: These initiatives, coupled with our accelerating growth and our super sweet business. should enable us to execute on our goals ahead.
Lawrence: Balance sheet.
Lawrence: These initiatives, coupled with our accelerating growth in our Super Sweet business.
Lawrence: Should enable us to execute on our goals ahead.
Kevin Vassily: This concludes my prepared remarks.
Kevin Vassily: We will now open it up for questions. Thank you.
Lawrence: This concludes my prepared remarks, we will now open it up for questions operator.
Operator: As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. One moment for questions.
Speaker Change: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, one moment for questions.
Thierry Wuilloud: Our first question comes from Thierry Wuilloud with Water Tower Research. You may proceed.
Operator: Our first question comes from Gary <unk> with water Tower Research you May proceed.
Thierry Wuilloud: Yes, good afternoon, Kevin and Lauren. Thierry Wuilloud, Chenlong Tan, Kevin Vassily, iPower few questions on the product sales. In the fourth quarter if we look at seasonality, I mean the main the main driver there would be would be the fans the fan business, right? Kind of a slow quarter for fans but with your other product categories are there any other seasonality factors? We have clearly products that perform especially exceedingly well in the fourth quarter. Historically, the hydroponics line of business, on the retail side, performed well, a little better than the quarter on the fourth quarter, I'm sorry, December quarter and maybe March quarter, but that's a smaller share of this.
Speaker Change: Yes, good afternoon, Kevin and Orange.
Operator: <unk>.
Operator: Two questions on the product sales.
Operator: In the fourth quarter, if we look at seasonality and in the main the main driver there would be would be defended.
Operator: The defense business right.
Operator: Sure.
Operator: Third quarter for sand, but with your other product categories are there any other seasonality factors.
Operator: Okay.
Operator: We clearly like Florida that pharma is excellent.
Operator: Exceeding.
Operator: For the fourth quarter.
Operator: B.
Operator: Part B the hydroponics.
Operator: Differences in language retail side.
Operator: <unk> performed well.
Operator: A little better than that.
Operator: Quarter on quarter.
Operator: And the quarter end.
Operator: Maybe quarter, but.
Operator: That's.
Operator: A smaller smaller share.
Thierry Wuilloud: It doesn't impact quite a bit.
Operator: Yes.
Operator: It doesn't.
Operator: Quite a bit.
Lawrence Tan: Okay, maybe one more question on the product sales. You said you shuttered the commercial hydroponics business. I know you've been de-emphasizing it, and it's become a smaller and smaller percentage of your revenues, but why actually closing down that line of business rather than kind of letting it, you know, just letting it go? We are transitioning ourselves from a hydroponics that are online retailer to a multi-category retailer across multiple categories, with other categories growing much, much more meaningfully compared to hydroponics. And we are also transitioning ourselves from just an online retailer to a services provider with a super sweet platform.
Operator: Okay.
Operator: Okay.
Operator: Maybe one more question on the product sales you said you started the commercial hydroponics business.
Operator: I know you've been deemphasizing it and.
Operator: It's become a smaller and smaller percentage of your revenues, but.
Operator: Why actually closing down that line of business, rather than kind of netting just heading would go.
Operator: We are we were transitioning our soul of <unk>.
Operator: From a hydroponic center on a retailer too.
Operator: A multi category retailer.
Operator: Across the multiple Cabot rates.
Operator: With other categories growing much much more meaningfully.
Operator: Paired with our products and we are also.
Operator: Transitioning our self from a.
Operator: Retailer too.
Lawrence Tan: And that's our goal to become a platform that's connecting supplier chains, logistics, merchandising, and potentially financial services to and for the sales, to facilitate sales for online and offline channels here and globally. As a step to accomplish that goal, we have shuttered down the commercial and Hydroponics business. It now no longer contribute to our business revenue as it wasn't contributing any meaningful numbers anyway before.
Operator: A services provider with a super Sweet platform.
Operator: And Thats, our goal to become a platform that connecting supplier chains.
Operator: Logistics of merchandising.
Operator: Potentially finance financial services to four.
Operator: For the sales.
Operator: <unk> sales for online and offline channels.
Operator: Globally.
Operator: Bye.
Operator: That's to accomplish that.
Operator: The goal, we have shuttered down the commercial.
Operator: Hydroponics business.
Operator: Now the loan growth.
Operator: <unk> contributes.
Operator: Two our business revenue as it has.
Operator: It wasn't.
Operator: <unk>.
Operator: Any meaningful numbers anyway before.
Thierry Wuilloud: Not long ago... Okay.
Operator: Right.
Kevin Vassily: Yes, and Thierry, it's Kevin. Just to be clear, this is the commercial side, so this would be... the business where we were selling product directly to commercial operators. We still do have... Hydro is part of the product portfolio and it and we're selling that through our online channels to consumers.
Operator: Not long ago.
Operator: Okay, Yes.
Operator: Larry It's Kevin.
Speaker Change: To be clear this is the commercial side. So this would be.
Speaker Change: The business, where we were selling product directly to <unk>.
Speaker Change: Commercial operators.
Speaker Change: We still do have.
Speaker Change: Hydro is part of the product portfolio and it.
Speaker Change: And we're selling that through our online channels to consumers.
Thierry Wuilloud: But it's the commercial piece that we've we've officially shuttered. OK.
Speaker Change: But it's the commercial piece that we've we've officially shuttered.
Thierry Wuilloud: Okay, great. Moving on to SuperSuite, can you give us an update of how many partners you currently have? And then you talk about a strong pipeline.
Speaker Change: Okay.
Speaker Change: Okay great.
Speaker Change: <unk>.
Speaker Change: Moving onto Super Suite can you give us an update of how many partners. You currently have and then you talked about a strong pipeline I'm kind of curious.
Lawrence Tan: I'm kind of curious, is there... you know, their limit in terms of how many new partners you can onboard on a on a quarterly basis or what kind of what's going to drive that business going forward? Yeah, well, while I don't think the numbers of the partners indicate much, what I can share with you is that we have now last quarter, like December quarter, it, the super sweet side of business contributes about 20% of the sales. So it's growing much, much, it's growing fast. Yeah, maybe another piece of Another piece of data you can use, Thierry, it's, it's roughly a $16 million a year run rate, so that's up pretty meaningfully from kind of the prior year.
Speaker Change: Yeah.
Speaker Change: No.
Speaker Change: The limit in terms of how many new partners you can onboard on a quarterly basis.
Speaker Change: What kind of what's going to drive that business going forward.
Speaker Change: Yes, well while.
Speaker Change: I don't think the number itself.
Speaker Change: <unk>.
Speaker Change: In the case.
Speaker Change: March.
Speaker Change: What I can share with you is that we have.
Speaker Change: Now last quarter like the second quarter.
Speaker Change: The supervisory side of the business contributes about 20% of sales so it's growing.
Speaker Change: Yeah.
Speaker Change: It's growing costs.
Speaker Change: Yes, maybe another piece of.
Speaker Change: <unk>.
Speaker Change: The other piece of data you can use periods, it's roughly.
Speaker Change: $16 million.
Speaker Change: For a year run rate, so that's up pretty meaningfully from the prior year.
Thierry Wuilloud: Yeah, last year at this time you were more on a if I recall, two or three million annual run rate, right? I think we were a little higher than that this time last year, but it was definitely well below where we are right now, so we're absolutely gaining progress and momentum with this approach.
Speaker Change: Oh.
Speaker Change: Yes.
Speaker Change: Tom you were more on a if I recall tool at 3 million annual run rate right.
Speaker Change: I think we were a little higher than that at this time last year, but.
Speaker Change: Okay. It was definitely it was definitely.
Speaker Change: Uh huh.
Speaker Change: Well below where we are right now so.
Speaker Change: We're absolutely gaining.
Speaker Change: Progress on multiple momentum with this.
Lawrence Tan: And is there any way to describe the pipeline of new partners or kind of just stay tuned and see? See how things go. We, at this time, we have a very healthy number of partners that we are actively engaging at different stages. We find them on board. What I can tell you is that we are not short of partners to work with.
Speaker Change: With his approach.
Speaker Change: Okay.
And is there any way to describe the pipeline of new partners or kind of just stay tuned and see.
Speaker Change: Yeah.
Speaker Change: How can it go.
Speaker Change: Okay.
Speaker Change: At this time, we have.
Speaker Change: Yes.
Speaker Change: Very healthy.
Speaker Change: Like a number of partners.
Speaker Change: <unk>.
Speaker Change: To be engaged.
Speaker Change: Okay.
Speaker Change: As we buy cinema.
Speaker Change: Okay.
Speaker Change: Washington.
Speaker Change: Just tell you that status.
Speaker Change: We are not far off.
Thierry Wuilloud: We are very interested in working with iPower.
Speaker Change: Sure.
Speaker Change: But with different partners.
Speaker Change: But their interest.
Speaker Change: Super.
Speaker Change: Sure.
Thierry Wuilloud: Okay, Kevin, I had a hard time understanding it all and maybe you can kind of summarize what he said. Yeah, that connection is breaking up. As of right now, it's her, her, her, still, bad. No, it's bad.
Speaker Change: Okay, Kevin I had a hard time understanding at all and maybe you can kind of summarize what he said.
Speaker Change: Yes that connection is breaking up.
Speaker Change: As of now.
Speaker Change: Sure.
Speaker Change: Kurt.
Thierry Wuilloud: Thierry, how about we take that call in the follow-up call? Okay. And I have just one last question. I've kind of heard anecdotally that Amazon was kind of continuing to reduce their 1P relationships and kind of pushing some of the smaller players out of that type of relationship. Can you like comment on that? And does it impact you in any way? I mean, does it make the fact that you have a healthy relationship maybe even more attractive or any thoughts around that whole dynamic? Just to re-clarify, are you talking about like Amazon moving smaller vendors when people are interested in the equation?
Speaker Change: Got it.
Terry: Now, it's bad Terry how about we take that we can take that.
Terry: And the follow up call Okay.
Terry: Just one more quick one last question.
Terry: Kind of head and neck.
Terry: <unk> quickly that Amazon was kind of continuing to reduce their <unk>.
<unk> relationships and kind of pushing some of the smaller players.
Terry: Towards.
Terry: Adam.
Terry: That type of relationship.
Terry: Can you comment on that and does it impact you in any way.
Terry: The fact that you have a healthy relationship.
Terry: Maybe even more attractive or less.
Terry: Any any any thoughts around that dynamic there.
Terry: And just to clarify.
Terry: Are you talking about like Amazons building smaller vendors <unk>, yes.
Lawrence Tan: Okay, yeah, we don't get impact. And actually, that's probably good, meaning that they are concentrating resources to focusing on better servicing larger ones.
Terry: Okay, Yes.
Terry: We don't get impact and actually that's probably good.
Terry: Meaning that they are costly.
Terry: Resources to focusing all.
Kevin Vassily: And that's actually, I think it's a good thing for us. Okay, and yeah, Thierry, that is that dynamic is something that we've observed. probably starting, you know, six months to a year into the pandemic where, you know, I think Amazon would pretty aggressive in inviting suppliers prior to that onto the first party platform. But the pandemic, I think, revealed some of the weaknesses that some of the vendors maybe with a little less operating history, etc. had in terms of execution and expectations that Amazon had set. And so, I think this has been going on for some time.
Terry: Better servicing larger ones.
Terry: That's actually.
Terry: I think it's a good good.
Terry: Great for us.
Terry: Yes, the theory that that dynamic is something that we've observed.
Terry: Happening.
Terry: Probably.
Terry: Probably starting six months to a year into the pandemic where.
Terry: I think Amazon was.
Terry: Pretty aggressive and inviting suppliers prior to that onto the first party platform.
Terry: But the pandemic I think revealed some of the weaknesses that yeah.
Terry: Some of the.
Speaker Change: Anders maybe with a little less operating history et cetera.
Speaker Change: <unk> had in terms of execution and expectations that Amazon et cetera. So.
Speaker Change: This has been going on for some time.
Lawrence Tan: Reiterating Lawrence's view, our view is that. during that period. Weeeee We actually executed fairly well on the metrics that Amazon measures, and if anything, it has strengthened our kind of relationship there. So in some ways, that can be a natural kind of market share opportunity for us.
Laurent: Laurent This view our view is that.
Speaker Change: During that period.
Laurent: No we.
Speaker Change: We actually executed fairly well on the metrics that Amazon.
Speaker Change: Measures.
Speaker Change: And if anything it has strengthened our kind of relationship there so.
Speaker Change: In some ways that can be a natural kind of market share opportunity for us.
Lawrence Tan: I think you're better off in your ability to kind of get consumer attention when you're selling to Amazon's 1P platform as opposed to trying to differentiate amongst a very, very large set of competitors on a third-party platform, so we're encouraged by what we see right now.
Speaker Change: Because I think you're you're better off.
Speaker Change: And your ability to kind of get consumer attention when you are selling.
Speaker Change: To Amazon's one platform as opposed to trying to differentiate.
Speaker Change: Amongst the.
Speaker Change: Very very large set of competitors on the third party platform. So we're we're encouraged by what we see right now.
Thierry Wuilloud: Great.
Thierry Wuilloud: Well, that does it for me. Thank you, guys. Okay. Thanks, Thierry. Thank you.
Speaker Change: Great well that does it for me. Thank you guys.
Other: Okay. Thanks Derek.
Kevin Vassily: I would now like to turn the call back over to Kevin Vassily for any closing remarks. Well, we want to thank everyone for dialing in today. We look forward to speaking with you again for our March quarter earnings release and call and potentially at some conferences in the near future.
Kevin Vasily: Thank you I would now like to turn the call back over to Kevin <unk> for any closing remarks.
Kevin Vasily: Well, we want to thank everyone for dialing in today, we look forward to speaking with you again for our March quarter.
Kevin Vasily: Earnings release and call and potentially at some conferences in the near future. Thanks, again and take care.
Operator: Thanks again and take care. Thank you.
Operator: This concludes the conference. Thank you for your participation.
Operator: You may now disconnect.
Kevin Vasily: Thank you. This concludes the conference. Thank you for your participation you may now disconnect.
Kevin Vasily: Okay.
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Kevin Vasily: Okay.
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