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| Statement |
|---|
| Subscription revenue increased sequentially $1.6 million and was better than the FY ‘24 expectation for sequential revenue increases |
| So this year first half, we made a much better start to the year than even last year |
| Overall, fiscal 2024 April to September was our best first half of fiscal year sales, comfortably better than the first half last year |
| Fiscal 2023 last year, was of course our best ever full year of sales and we are off to a significantly better start halfway through this year |
| July to September was a good sales quarter for virtually all the sales verticals across gaming casinos, resorts, cruise ships, hotels, managed foodservice providers and international regions |
| Sales from non-gaming resorts, hotels and cruise ships were particularly stellar and increasing because our market share levels in these areas are still low with major growth possibilities ahead |
| And some of the color we have given if this quarter was one of our best, but the first half of the year was our best first half of the year of any year as far as sales is concerned, and comfortably higher than last year |
| Our competitive positioning strength is increasing with every passing month |
| Because when you're growing 20-plus-percent year-over-year, it's kind of like an expectation that every quarter is going to be kind of the best ever |
| But us increasing the guidance of revenue also has to do with our sales doing very well and winning new opportunities at a faster pace |
| Nehal Chokshi Okay, so to be clear, the main reason why you're raising guidance is because you did have a really strong ACV bookings quarter within the September quarter? Dave Wood Yeah, Nehal, we have a strong sales quarter and even despite the large revenue increase, I mean, keep in mind our backlog is still at near record levels |
| FSM continues to improve, and we had our best half of sales internationally ever before -- than ever before |
| We think we have done well executing on our strategy to fill the gap and expect our escalating product and technology-driven competitive advantages to continue to drive good business momentum in this huge total addressable market space |
| We think that momentum will have good staying power even in a possible challenging macroeconomic environment |
| Our sales win-loss ratios continue to be at impressive levels |
| One of the highlights of sales success during the first half of fiscal 2024 was the rapidly increasing sales productivity of quota-carrying sales personnel hired during the past couple of years post-COVID |
| It has been particularly high in the resorts and cruise ships and hotels, that space, but gaming casinos continues to do very well |
| In addition, the number of marketing-generated sales accepted opportunities focused on new customers and new properties, generated by innovative and effective marketing efforts continues to improve |
| Nice to see this big revenue and a big guidance uptick |
| And a great quarter |
| POS were well established, high competitive strength, but still low market share in many areas, both geographical and sales verticals |
| We seems to be -- we seem to be ahead of the competitors as far as POS is concerned because we've had a long track record with it, well established product, lot of good stories in the field |
| So the best way I would describe it is our progress with midsize management companies continues to improve |
| FSM, I would say, continues to show a steady improvement from the depth of the COVID days |
| I mean, they've done a tremendous job with revenue through the first half of the year, but there's still ramp left on that team, which their gross margin should continue to increase |
| New customer deal sizes remains at impressively high levels |
| So the win-loss ratios are very good when customers look at our product demos and nobody else is doing this kind of end-to-end ecosystem innovation |
| There are many countries in the world where we have to establish ourselves more because apart from the product superiority and the ecosystem superiority, they also require customers who will give them the comfort feel that yes, we went with these products and we are doing well |
| Fiscal 2024 Q2 revenue was a record $58.6 million, the seventh consecutive record revenue quarter, close to 23% higher than the comparable prior year period |
| The year-over-year quarter revenue increase of $10.9 million is the highest we've ever seen |
| Statement |
|---|
| As expected, gross margin was affected in the first half of the year as we continue to ramp up the services team |
| So there were clearly some big large operators, particularly in the gaming space, that have had some cybersecurity issues |
| We cannot say the technology providers of this industry have done too well keeping up with the innovation needs due to among other reasons, a lack of focus on end-to-end hospitality needs and far less than needed research and development investments |
| It is possible that we may not feel any negative effects even if there are any ripples or the level of the water shrinks a bit, unless it becomes an enormous drought that overwhelms everything |
| We've gone through the tough phase when we had to make significant cost investments in order to drive medium term growth and you're aware of that |
| Number one, cybersecurity incidents are not new in hospitality |
| Some decisions do get postponed, George, but none of them get canceled, and those kinds of decisions being postponed because they are focused on getting themselves back or tightening cybersecurity around themselves does not too badly affect our sales or anything |
| The truth is, we are not seeing any signs of slowdown in business momentum |
| So it's not any direct impact or something we are too worried about from a sales or revenue growth standpoint |
| We've not seen any noticeable negative effects of macroeconomic challenges |
| But that has got nothing to do with the sales progress we talked about |
| So number one, what happened a few months ago is not new |
| But what we are worried about is making sure we are there to help the customers whenever required and we do help several customers during the year |
| As far as sales is concerned, when you finish a quarter, every quarter you start from zero and you have to build it back again |
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