Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| We will be better poised to capitalize on the expansive opportunities within Asia |
| Adjusted EBITDA as a percentage of revenues improved to 35.6% for Q1 '24 from 35.4% for Q1 '23, reflecting cost efficiencies gained from an internal realignment within verticals we discussed on the Q4 call |
| And then not we've been public six years, we have to make a change and this we're very excited about it is this should put us on and a good spot over the next three or four years |
| We believe these businesses have significant opportunities for growth |
| Our revenue yield improved modestly to 148 basis points for the quarter from 145 basis points for Q1 '23 |
| We have built and acquired best in class technologies, attracted amazing customers and most importantly, assembled an incredible team |
| So a better balance sheet |
| I'm extremely proud of the I |
| Our balance sheet remained strong and well positioned for '24 |
| We've always believed in our scale and our expertise in payments gave us an edge |
| This business has appropriate leadership, sales and support to operate on a stand-alone basis, and we are confident that it will attract be attractive to many potential buyers |
| Revenues for our merchant services segment increased 8% to $35.4 million for Q1 '24 from $32.8 million for Q1 '23, reflecting broad-based growth in our ISOISV |
| ARR increased 9% to $317 million for Q1 '24, a new record, compared to $290 million for Q1 '23 |
| So in a quarter like on onetime revenues, it's remarkable we could keep the margin as we did flat on the internal realignment is ongoing and continues |
| The segment's adjusted EBITDA improved 7% to $20.2 million for Q1 2024 from $18.9 million for Q1 2023 |
| Our revenue yield moved up a few basis points with continued expense control |
| The sale of the merchant services business would generate capital that the Company would expect to deploy to pay down debt and can be used with additional strategic application towards M&A in our three target verticals, our focus will continue to be growing our industry leading software businesses and public sector, health care and education, which we believe are the optimal platforms to deliver enhanced shareholder value over the long term |
| Revenues for the first quarter of fiscal '24 increased 7% to $92 million from $86 million for Q1 in 2023, reflecting organic growth and acquisitions |
| This is a leader in the market and we believe it has tremendous potential with increased attention and resources of external ownership is led by a highly respected industry veterans with decades of experience and their sales and technology teams are formidable and top-notch |
| We currently expect to resume high single-digit organic revenue growth in fiscal '25 as Manitoba gets back to a normal cadence, our opportunities in the utilities market progresses, and the SaaS transition becomes less of a short-term drag |
| Third, we'd like the opportunity of the sale because we believe it is beneficial to our customers, our employees and our shareholders |
| Revenues in our software and services segment increased 6% to $56.6 million for Q1 '24 from $53.2 million for Q1 '23, reflecting growth in healthcare and public sector, including education |
| But first, I'd like to highlight the results of our first quarter of fiscal year 20 for revenue and EBITDA were both 7% higher in Q1 over the same quarter last year, and ARR |
| Adjusted EBITDA for our merchant services segment increased 14% to $10.7 million for Q1 '24 from $9.4 million for Q1 '23, outpacing revenues |
| We started this company and we knew the business well, we understood the power of consistent recurring revenue that could be unlocked when we add value to our customers and take care of them |
| The adjusted EBITDA margins in both the software and services segment and merchant services segment improved but were offset by an increase in our corporate expenses, principally healthcare insurance costs and duplicative hosting costs as we transition from our private cloud with Rackspace to AWS and Microsoft Azure |
| Our pipeline continues to be robust with Target Companies largely in public sector and health care verticals |
| We're excited about the next couple of months, and I appreciate everybody's time this morning |
| Adjusted EBITDA increased 7% to $25.2 million for Q1 '24 from $23.6 million for Q1 '23 |
| grew at 9% |
| Statement |
|---|
| We have been deliberately replacing one-time software sales with recurring revenues such as SaaS and currently expect one-time software sales to be $5 million lower in fiscal '24 compared with fiscal '23 |
| Celtic acquisition anniversary this quarter and declined by $1 million Q1 to Q1, reflecting the strike in Manitoba, which we discussed on our Q4 conference call |
| The transition is happening a little faster than expected |
| Maybe first, Clay, just on the lower revenue outlook |
| Anything else to call out on the kind of the reduced our outlook for the top line? Clay Whitson No, I think you if you've that's the correct point, just to do some math around that, what would have been $5 million of one-time license revenue might turn into 800,000 of SaaS revenue because let's assume a three year contract and maybe it comes in halfway through the year |
| As we have communicated in the past, software license sales are the most variable and difficult revenue stream for us to forecast |
| John Davis And then last one me for me quickly, just on the EPS guide, it looks like the majority of that is just higher interest expense you're eight or $0.09 and a few pennies for slightly lower EBITDA |
| There's been a lot of delays it seems like things have pushed back and most of it is at this date or county level |
| Revenues from software licenses fell to just $0.7 million for Q1 2024 from $1.2 million for Q1 2023, and an average of $2.7 million per quarter in fiscal '23 |
| So while the strike is over, the project has continued to push out as they kind of had to ramp back up and get people back to actually the table of stakeholders that reengage |
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