Flotek Industries, Inc. (NYSE:FTK) Q3 2023 Earnings Call Transcript

This has become more and more and more important. And that’s why I think we’re in a really good position to continue to improve our gross margin base.

Bond Clement : Hi, Gerry, it’s Bond. I’ll just add a little bit. Just to give you a framework of the dollars Ryan’s talking about. So our transactional, which we define as non-ProFrac chemistry business in Q3 did just over $16 million of revenue. During the first quarter of this year, that was $9.2 million of revenue.

Gerry Sweeney : Got it. That’s helpful. And again, little bit newer. But Ryan, I think you were just talking about a 12- to 18-month sales cycle. Can you — if you’re comfortable with this, maybe just describing what your current sort of backlog or pipeline or how many entities you’re talking with today and maybe even conversion rates or something along those lines if you could or would.

Ryan Ezell: Yes. That’s a great question. I think in terms of the details, provides quite a bit of color, not only the diversification of our revenue stack, but also the strength of pursuits, they are in play right now. If I was to refer back to say, in 2021, our revenue stack was represented by 2 customers that had over 90% of our revenue. If you were to go now on the transaction of our chemistry base, we don’t have a single customer that represents more than 8%. And so we’ve seen a significant diversification, in terms of who we’re getting revenue from and that change over there. And I would say that almost 50% of our revenue that came in Q3 was attributable to new customers, which is fantastic. And then if I look at our pipeline, that starts through Q4 and roll through the end of next year, we’ve got almost $400 million worth of opportunities identified in our domestic and international business.

And so we’re really excited about what some of those opportunities are. And again, as I look at it, if I see, these technologies that we have moved into the forefront for these E&P operators as well as helping and growing our relationship with the pressure pumping companies, we’re in a really good position there.

Operator: [Operator Instructions] This concludes our question-and-answer session. Now I’d like to turn the conference back over to Mr. Larry Busnardo for closing remarks.

Larry Busnardo : Thank you again for joining us today on our call. We know it’s a busy morning with other calls within the industry, so please feel free to reach out to Bond if you have any additional questions. Thanks again, and have a good day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.