EGOV - Earnings call transcript Q1 2019

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Operator

Good day, and welcome to the NIC 2019 First Quarter Earnings Announcement. Today's conference is being recorded.

At this time, I'd like to turn the conference over to Angela Davied. Please go ahead.

Angela Davied

Thank you, operator. welcome first and earnings everyone, afternoon, to quarter NIC's call. Good available quarter release our announcement also website for press XXXX egov.com/investor-relations. earnings our at NIC's is ago, The minutes first earnings corporate XX was release on issued

(XXX) can will and email You you. we to XXX-XXXX, headquarters information call our also at the

our slides we to the to go showing of website egov. webcast, as of at quarter This also so our online IR part are I everyone section encourage

Steve information and NIC's are our deliver NIC's, and open CEO, Officer, we'll us a Chief CFO for then Joining the following Herington; Financial on today cautionary Harry statement our will Kovzan, reading of questions. remarks, regarding prepared forward-looking CEO

statements. made do future regarding call company's that statements and which length business during performance historical the relating objectives relating not to renewals, expected company's statements share terms, potential statements or based. estimates, the the including relating the rate, years, expected potential this future of or statements constitute year These contract XXXX fiscal statements financial include to Any new the expected tax possible forward-looking projections, for future fiscal are relate current upon facts effective acquisitions potential plans, dividends other relating statements to repurchases assumptions statements and possible contracts those events, company's or statements operating results, and and to to

expectations that risks whole actual in subject government national state are These new ability current assumptions of political, contracts and sign to company the uncertainties, rights part, existing the and including agencies. and forward-looking federal, on the contracts, partners; differ to conditions, to competitive, renew results market cause business, and based termination local materially which its of regional social various and company are and or may statements from to in with Forward-looking include and economic, statements. risks the

incidents. and as acquire as candidates security to suitable acquired businesses and ability well integrate possible successfully The any data acquisition company's identify to

on uncertainties About any future. differ rely XX-K prediction sections recent Caution the included not Factors Statements and XX-Q and guarantee results should about as detailed Forward-Looking forward-looking from could materially a is company's and to that statements or actual with forward-looking and Risk You risks titled statement in the A of the cause of most filed such the discussion events forms SEC.

at statements during be are undertake only otherwise. may this made website as new filings no whether this These the of publicly, Any update statements events available revise law, applicable a date the forward-looking by call as future result we forward-looking or sec.gov. speak obligation any SEC's except of of call, at as or required to information,

Chief Now to introduce Officer my NIC's Herington, of pleasure it the Executive Chairman Harry Board. is and

Harry Herington

call, want our NIC value you, enable teams partners. things to to I To that demonstrates first, local Thank Three that Angela. delivers begin government an our truly our that the share the to that us partners. lead support effort the are about government industry

state. the NIC best Nebraska. solutions to third, Second, of three recently from often can to the our deploy that And to differentiators came innovation government spirit cost-to-cost. of the unique people and and no These at share practices our together support of quickly community and the partners ability cost

in were Nebraska's incurred that XX% Missouri catastrophic billion more were bas, all the flooding emergency. We've XX national and River has took damages. killed Three people than the across a about $X place heard of declared the counties state

as horrific. could farms the with far highways, water cities the Interstate the stretching vast eye The and turned scenes news on entire a as into were were see. lake retract,

team those Lincoln stepped Our up help do to in need. their in part to

support fellow and They NIC. they rallied flooded, on their Cornhuskers. their focused as Even were throughout own resources homes helping

but quickly website for of needed and services, helped a in launch Ricketts. Team that Nebraska aid same variety exactly state. the solution any Montana were forces what joined Governor, already all of all burden at Kansas, no in strong we added to due Texas would delivered, a not dealing which is agencies, with members cost Vermont, Nebraska emergency many state the on to and Pete those Illinois, time place the that the at need and the increased Nebraska workloads

some work are is making from the efforts over. Nebraska on hope help NIC This through strong together lives team small Nebraska about. my far exemplifies in it their their just struggles who difficult what proud working our members with get I is recovery But and am pulled is little this easier. very all that of time, our in to solution everyone way a

three Now, business I enhance our vertical with our on the strategy, use of strength our expansion the financial and acquisition core and grow secure call to strategy the to pursue opportunities. XXXX diversify to continued and outlined last components our of business,

this I fronts these report am pleased delivered to all we quarter. of on

the that for First, platform this regulated a hemp Complia, founded has the XXXX earlier and morning licensing of we company best-in-class announced industries. in acquisition a cannabis highly developed Denver-based the

fact company aspects these regulatory according a for on industries. three cannabis regulation, and of to business they caregiver In credentials. are only licensing the focus current States employee The United the exclusively the registration primary and to licensing, Complia built patient in platform

the to legalized passing within believed of Of those the have legislation marijuana. We XX recreational NIC XX allow exceptional XX marijuana legalize are new there XX Currently medical market partners. states medical are cannabis relatively states industry. with marijuana, also states opportunities regulatory

are experiencing and Montana, processing states fantastic Maryland, NIC on in market enterprise contract Island. the licensing providing these for a in solution. already Each with in momentum payment is and four Rhode of states Complia's Oklahoma partner Complia we and NIC

aggressively strategic partnership those to the have the over past quite well Complia team opportunities and have year. pursued through come know a We

synergies realize could that quickly by achieved we result, a Complia. As acquiring be

includes the of the founders. the would part As which team company's acquisition, the three join NIC family Complia

ability edge, also modular highly greatly This and quickly marijuana Our Hawaii, system acquisition based Maine our to us solution certificates well a this medical custom scalable. is as expand licensing cutting enable configurable in experience and realize platform. as providing in deploy Oregon to would cloud

In fact, of other capable for industries. it several highly providing licensing is regulated

In acquisition a important additional This expand current an build begin this that use its only we it to and of system but for licensing. upon is hemp its form investment. as and focused aspect made platform is a cannabis great beginning types licensing, is the on a the

Steve This solutions in along financial with licensing the we country solutions discuss have licensing aspects the other of NIC the and suite of United most provider across the comprehensive of deployed a the the permitting the of makes moment. States. acquisition will in one

and our and expertise to and fit as vertical. acquisition dominant a ways permitting financial that expand in tuck-in of But strategy position deliver provider our needless that to in very say licensing to pursuing on excited strategic, I'm this cultural are us in a

also but news also contract to awarded we only drug vertical. our provide in health NIC Health have is as corporate, In prescription exchange new recently addition the to [ph] third-party Not RXGov report RxGov a days information by away was Nebraska's healthcare on life Complia Maryland, good within Initiative state's Information from monitoring acquisition, to Nebraska one the platform.

two secured assets. five Maryland months see pleased XX The than a to contract very and these taken technology and this contracts includes with acquiring have of base that Nebraska I'm in year renewal options. we RXGov and the one within two off business year less contract

lives. And the partners The and value also to health combat of our state recognizing Together to epidemic. transparency, will help Nebraska the we save and electronic none. partnering and Information opioid reporting that NIC Health Nebraska it's Thank second good new the states record to national see capabilities with integration are you Initiative. to at

an also added we automatically a This service our or Mississippi the fishing launched This to quarter the it state's our expertise months March, Recreation for to Outdoor hunting license Vertical. renewal allows have enthusiasts Wildlife, Department and of auto In service team later. outdoor Fisheries renew XX in in purchase Parks.

license government shop is can hot hunting at the example and This register license they auto That sporting NIC store Mississippi person is someone talked, in original renew one renew. paper this technology. local has bought fishing even online a the Digital just purchased. offered how the can goods automatically, advancing license first of or and go are this a a was of in topic is time bait and if license means regardless IDs that their I state to

outdoor relates quarter update this recreation to One YourPassNow. more

became in passes the park state NIC's state to first Jersey on the offer nation New YourPassNow recently platform.

purchase Now Garden convenience and passes those visiting annual pass XX park their state can YourPassNow. any using of now using a park an the digital sells Each have of the state year parks purchase a smartphone those state pass. New visiting State will annual Jersey's of I'm thousands to glad

continues contract Pennsylvania. XXXX. shared for Pennsylvania and March extending another to our finalized As first Oklahoma contract with one Thank contract both two enterprise contract you recently, partners through Pennsylvania renewals secure and November We contracts is while XXXX, our Oklahoma rebids in The our continues earlier year. focus Oklahoma and I renewals. the primary through

in innovative know projects have year. states convenience are City I delivering We digital way in even the on our teams under more in focused and coming Oklahoma Harrisburg and government both

leading product that He joined April and complex and we week in XX. organizations roadmaps. team last Officer, we a a hired the background technology announced NIC had Finally, Technology Anderson Chief strong Brian experience brings on outstanding

XXXX. local Software Brian Lexmark President Lexmark began Officer recently Perceptive career Most product Kansas for and served Vice Software as Technology management engineer his Chief as Enterprise led a and in Executive has organizations. based after software he various acquired for Division

aspect Brian's will the be artificial on and will cloud vision to advancements including technology technologies other innovation, skills a that nearly know every in staff we addition I and with expertise have already great disrupt society. of intelligence

about more and There of vision and strong on as will There all as during meeting. NIC. off I are technology traction. It year market kick NIC expertise leader, We for gaining to incredible to seeing annual vertical a tomorrow the we secured of right and enhance building acquisition. momentum Brian exciting contracts, that welcome overseeing NIC stockholder much, and share had of family. NIC guidance new types are come the business was shared important I our the in elements more much our closed for all we XXXX, my is we aspects strategy is this our opportunities an at

For over Chief Officer, to Steve Financial now, I'll turn the NIC's call Steve? Kovzan.

Stephen Kovzan

per Harry. prior Thank for have the you, we in quarter. share compared out earned to the call quarter. to the quarter XXXX, $X.XX one item non-core $X.XX In year first I of

the of Officer Operating for costs severance million previously per earnings departure $X.X $X.X. approximately our reflect reduced by as approximately Chief former disclosed, share results which Our

get into slight state Report our results with in have the term change the in use quarter enterprise consolidated the to portal XX-Q notice the state for the same core you of business. to will our feel of and into state term enterprise. a terminology replaced services. segment Quarterly Before will reflects In core costs now short, relating continue and earnings better our and At revenues software scope in Form release we broader categories scale I the and two which we direct enterprise we the on level,

unchanged. The composition both are of

break We our a I one this notable out will and change administrative moment. which also other two quarter categories made expenses to on in into touch selling

$XX.X to as revenues payment revenues processing the disclosed. results lower decreased from year for X% the the from core X% which contract we've largely compared to prior driven Total revenues quarter. commenced XXXX, Xst, the legacy the Moving on Texas by state down with contract on enterprise to quarter previously September million new

year the For of prior the from contract $XX.X revenues Texas enterprise to quarter. compared legacy quarter million current million from new in comparison $X.X the processing purposes in revenues payment state the contract included

XX% payment years. increased the government key strong Breaking transaction over history same in Same as major year by double from the driven interactive a Total services DHR state of revenues the revenues components prior quarter. of IGS growth several state revenues digit same handful or states the state based first service. prior Same transaction XX% quarter growth. and increased record down several as quarter or the for for revenue based year up processing other were state quarter a services well driver reaching X%

revenue growth of of received the from state we As in expect remainder year. a state we quarter anniversary XXXX the marks to price the year. one for moderate of last increase somewhat a first current level DHR the same item, housekeeping Thus

the And states. quarter refer to lastly revenues projects we development of by across same-state as and timing software services the materials software multiple development timing revenues X% for which driven various formally decreased

and our revenues which basis for management fixed management portal While a same-state we development refer Indiana the decreased fee from for to the formally management contract On quarter. revenues as were X% quarter. combined flat revenues fee same-state fixed

federal from and and pre-employment expect be resulted the the up screening of highest recreation.gov revenue mainly seasonality year Software revenues approximately from year $X.X the continued $XXX,XXX the quarter, Services service over quarters totaled growth in one outstanding we the well XX% along a for quarter. as This quarter volume performance million which recreation.gov from during program generated strong for the standpoint quarter. XXXX a revenues the which first prior launched stellar the of X, October of with second to as

income was an severance new of Operating lower and in profits primarily resulting operating processing for significantly This quarter income payment Texas the the revenues from from decreased XX% aforementioned XX% legacy and contract XX% down quarter. prior the by the year in driven contract, executive to cost. margin

you and also items, our administrative enterprise of and note expenses selling support. will and and As breakout administrative selling line I alluded the into to product technology earlier two

audit public communications of executive corporate a relatively category internal legal, category administrative The for new Historically, low been accounting, administration. selling growth for NIC. has this and traditional resources, and expenses level and finance, consist sales human marketing, relations, cost and

enterprise new security I.T, category manage secure that consists to develop, solutions enterprise micro-services government our as our centrally centrally infrastructure support well product and primarily our other vertical data products and technology product platform internal center and GovXGo development payment expenses related The of licensing, and and recreation, teams healthcare and our corporate and including and developed including citizen-centric platforms. as platform agency outdoor solutions processing hosted

these expense. for platforms growth create this we our breaking compared selling years, a cost is as NIC, investments of stepped associated a more growth trajectory making category the up view to has of our in to administrative traditional are costs recent the objective In clearer it technology and the higher in and been so out

One on this final note change.

the We basis XXXX the Relations category XXXX. former our quarterly year to the Investor on XXXX, reconciling totals breaking and single included for two have website the slide on a section fiscal of categories a out new and and

of and look expenses in compared revenues X% year closer quarter XX% at quarter. for increased prior the these administrative the as percentage expense total a in selling quarter were taking and XX% results for Now, the our categories, a to

Excluding executive and in nominal have growth flat would revenues. as severance total expense both costs, selling of administrative and been essentially a percentage dollars

prior of XX% driven higher and and the technology increased to product was technology our and Enterprise infrastructure a to costs The related as X% to X% development revenues prior continued by quarter total were for costs. to support citizen-centric quarter. enhancements percentage to costs platform increase GovXGo

which in by up executive tax are driven purpose. prior of effective costs a the for significant our the XX% Finally, rate portion that severance quarter, income from not-deductible XX% quarter, year was tax for

unlike As for cash $XX over of the The which based acquisition. three contract technology $X ability on new earnout Complia wins consisted acquisition, of in to price this closing years. was an a full was million million purchase business up next with RxGov acquisition asset the a on

for this we acquisition we this modestly While licensing highly services a allocation not Harry take of and the yet price, diluted our platform have intend serve focused to licensing the regulated platform the earnings broaden to within Also mentioned provide finalized as currently and and purchase hemp what platform to industries anticipate will very investments other currently other the we is is make scalable the be industries. a and year. cannabis

rely not guidance, on should to soon practicable. you our we issued as which previously Perhaps, hope as update EPS

our guidance However, unchanged. annual revenue remains

subscription from our Going monitoring RxGov SaaS fees states, forward, licensing be the Like implementation to software mentioned and category. from costs Complia partner prescription be revenues annual Harry will in and and Complia's generated services the expect regulatory four solution, fees. from contracts revenues reported solution ongoing we in existing upfront NIC drug cannabis

ideal fairy acquisition of tuck-in provide additional will second followed for Complia July. was But acquisitions now, earnings ways to for echo Complia quarter asset details we (ph) In on that RxGov sentiment August. our an believe the many our NIC. I script We financial in hope call last

expertise, early In the network. relationships digital strong will stage developed enterprise deep built sales government leading strength, platform had the young a sense that a founders built, financial with purpose that from state relationship benefit we industry NIC's company and of a nationwide technology that

to types expands dramatically and our another licensing increases in platform in solution. further best expertise class multiple market our Complia of with speed

solution XX GovXGo. solution in plus our recently their it and Complia processing with may Oklahoma future less there applicability fact payment integrates already we seamlessly with deployed than believe In be days,

With turning call welcoming close to Complia I the family to back that, will by NIC team and the over Harry. the

Harry Herington

that start off XXXX. progress strategy We're three growth pronged of making on great several Steve. in revenue earlier I to level and the quarterly outlined We a we're and Thanks, the generated solid highest this same our year. we've state seen past years

We government make solutions modular, deployable and state configurable, needs continue tailored of rapidly with best variety government a service to platforms. provider the to a specific be continue of for the best the digital

operator, that for we question. the open will With up call now

Operator

you. Thank D.A. to first Peter Davidson Heckmann [Operator go Instructions] and with We'll Company.

Unidentified Analyst

Hi, guys. Pete on is for This today. Alexis

in more that So on some our like insight scale right love competitors are pretty Complia the offerings you're to in that same licensing competitive opportunity firstly, seeing unique the would area? And fairly any you we other you some unique sounds cannabis terms is the are you see solution. would offering are has a NIC's already that Or now? sale? say of seeing of It

Harry Herington

don't I Alexis, Harry -- Herington. it's Hey, believe

be provide of regulatory - they've this some, a others in for to what that another use, we First seed I off or cannabis. that is not here solution, medical NIC to want agencies is component the that it What to provide we which sell piece I previously it. - suite, Complia recreational what is through a have partners acquisition, with whether sure make clarify

the got we far thing. would other never I what is realm, out as have in of the plenty speak we with hemp, marijuana the say but there very as licensing along excited ahead opportunities, I cannabis, opportunities And just of there,

strong. very market So I would that say is

Unidentified Analyst

nice a you Great. just too. then housekeeping. Thanks, was the recX what and to the And stop in little you meet tell it's [ph] quarter? Harry us Can revenue

Stephen Kovzan

Yes, $XXX,XXX. the the was be and the first of revenue from - I it think think from We a the year it highest we earlier mentioned will second in the probably standpoint. quarters about seasonality recreation.gov first

Unidentified Analyst

sounds then some That's then just And permitting revenue option, Okay. licensing that. are and any helpful. other expanding over more Thank Illinois on outlook you. lot you transactional update the into on it the have for And the of states. permitting you a do for opportunities like

you to do other a ready? still you solution might have expecting similar are So be and that when to any states idea market

Harry Herington

a going to of and answer is That it since break question look business-facing it, first permitting so that's were down, jump that we has these - when based. XXXX, core I been citizen-facing, will it of of as long a lot as I'm very NIC licensing is Steve launching and function transactional of part applications - started far in a

we that continue with And so, great absolutely. it expand expect hope that out elsewhere. there, a take along this, enterprise to and Illinois Illinois, is And solution with to

and This two cases that fit the nicely that going us it enterprise to one I'm else front. scalable solution, them suite past is at very put a even to be whether depending the some XX done able for is comprehensive excited. have here over agency what a also or single on a between we've opportunity, in services, of in very the of be very we years, the

as far anything Steve to revenue, is you As want but there add?

Stephen Kovzan

so. don't I No, think

the and there of be with of Illinois, in that at completing I shortly. stages the kind base think final should terms we're platform we're of done

Unidentified Analyst

you. Thank Great. Okay.

Harry Herington

you. Thank

Operator

from Vafi next Joseph with Capital. our to Loop question go we'll And

Joseph Vafi

guys. on that afternoon. same-state Hey, Good Good results. growth. Congrats

on little bit Complia. more a Just

our competitors Just coupling give Just the at Or idea this marketplace exactly, there any solutions out there. other solutions point? if today? just together other there own in their - competitive is leading to an states is are

Harry Herington

quarter. this. you we're is thank is on had for only Harry the Absolutely. the the Joseph, and on very then Complia excited. focused company that just been this Yes, compliment entirely

say with. other there that this didn't I past, in of are So would companies out in compete them would with space, some some say compete

a there. I out variety variety, tell companies couldn't I you would there is there's the say so numbers, And a

ones ones to As same kept evaluated we we look NIC a the over from comfortable scalable solid one past the the standpoint, a were coming available, with We back at that we when it. system. years, they partnering is this looked that were who is the company. feels This we opportunities and responding of to built is other system, a where the couple said they've this

strong this that a And so is class I feel first solution. very

Joseph Vafi

is great. the of managerial pipeline point I acquisitions pipeline? the this your How from the to accelerator think And obviously bigger management positioned And foot M&A continue a look the on as historically. kind the and have does from to company bandwidth view That's here? on of -

Harry Herington

ones into careful, company core would been say it larger many past, absolutely learned make I early did larger integrate around And ones. what really can the you the find years we've have is of your we in XXXXs is this what does in is Those one business. a you since then. sure and fold our be back

I would sized nice say at this acquisition, one - limited. it's not we're but a

on beat I be before, opportunity several actually got others. We bid $XXX great. we mentioned think that and thought I after that we a out million to

evaluating We next or whether to for that we mean, going and looking And after that that value. aggressively opportunities. technology right I step. yes, the take are we are bring that can be solutions it ones conservatively

Stephen Kovzan

the Steve they're that, last these both we be Harry and kind like NIC comfortable of there. that have be to is bandwidth pretty evaluate within out would and to that tuck-in thing of acquisitions feel into think The that made we Complia, family now and add this the acquisitions with able opportunities only ideal with I be is year, the still other might Joe, I integrate RxGov should said deliberate we've very quickly that

Joseph Vafi

sorry. I'm And I price, the missed, What Got Steve. was purchase it. just again?

Harry Herington

front earnout based payment, on million million to up wins and - new next three $XX $X a options the the years. contract cash So, upfront over

Joseph Vafi

for look lot. the Congrats final just then announced. that What relative two one like the the contract of waterfall that coming expirations renewal renewals bid? up Thanks you And a schedule does to question from renewables. on on are Great. kind or here

Stephen Kovzan

that there's either expect say another probably I this where to procurement process states think issued. we're open RFP an an to I process, there's four five four RFPs be of generally there's year rebid or speaking, part would Joe, we

Over of think year, four or five. the the course next numbers the I

Joseph Vafi

Okay. on would And renewals? rate run be revenue the what those idea, give overall an

Stephen Kovzan

top quarter XX-Q I disclosed that we but which don't our file every have of just in we’ll it tomorrow. off my the - we head, we

So, that should state go have be contracts includes also also and there. where options, we enterprise out - - that enterprise we state where rebid. - states And contracts will includes go number renewal have through where and a competitive that expect where we full

Joseph Vafi

Got results. a Thanks lot. it. Good Great.

Harry Herington

Thank you very much.

Operator

we'll with And John go Campbell to next Stephens.

Unidentified Analyst

is John. for this guys, Hey, on Carter

Harry Herington

Hi, Carter.

Unidentified Analyst

recreational you, both side are Are recreational marijuana Complia How of Hi. legalized, or one you different guys? XX side states, those? cover you the have XX for that the legalized On contracts the for now there versus contract legalize acquisition it medical mentioned only use.

Stephen Kovzan

I that Yes, that most solution have generally they both speaking, for states think do either typically one licensing both. or have

Unidentified Analyst

Okay.

sort platform, come that a played did on a the did right use other or for all they have anybody they of states, that platform at with contract use that this don't they they of XX or us vendors And Okay. now? have

Harry Herington

in reason they In of place the there then have process got, partnered we're the which that's the just we've just all them. excited states in about some legislation And them, they of the with put passed opportunity. that there's we have competitors now of the mentioned and of getting course some that that out I before states of

Unidentified Analyst

Okay.

any One on the that's win other there new Yes, developments Is the Nebraska on update outside helpful your RxGov solution. that. for Okay. more sales pipeline. of on

last that the earnings years you opportunities with I you mentioned come XX expects all? guys win. next that change three this the On bid Nebraska to call, for Does think at to

Harry Herington\

that we pipeline with able see to a and we're excited show there, in is come you to Nebraska, and about expecting momentum for state out out the one of that solution that And there still partner there's the the we're that tremendous tell them momentum. the value crisis very own have. this and I'll we're No, type our

assimilated seamlessly we're these integrating solutions very demonstrates quickly earlier, got possible. mentioned now Steve moving Nebraska Nebraska demonstrate is, as and forward just we've and we've It aggressively. how that Maryland those

Unidentified Analyst

That's Thanks, Got guys. helpful. That's you. for me. it

Harry Herington\

Thank you.

Operator

go And next Prestopino Instructions] we'll Research. [Operator Barrington to with Gary

Gary Prestopino

down Hey, this I get on couldn't Good afternoon. write so want Complia. I Hi. clarity enough quick to here,

XX me XX XX states legal marijuana, states that have Let medical, have legal say recreational have just there's marijuana that use or marijuana.

right with now. Complia you've -- states that with got four got working You've you're

other states kind there's it do now. licensing they same XX provides don't to of Complia providing requirement other or thing or out need right this have The that competitors there adapt the

Harry Herington\

may with the Gary licensing think I just various in XX of may oversight states I provide clarify, these regulatory companies, ways, and would internally. industries to may say it other they work other they do

also it's and what's done state. We Maine, to we in as with various So hard I Hawaii, -- every say Oregon aspects well. work regulatory on think -- work of cannabis permitting licensing and

state. by state varies it So,

Gary Prestopino

some So, out there. I guess entities probably there's

it you platform can industry this attractive marijuana the scalable for what's into scalable the that portable the marijuana other just requirements, applications. factor it licensing to that ordered be for into or and it besides just so it's fact made it's differentiating and is that the medical So other or

Stephen Kovzan

number the both, they're solutions they market, reason bit when this on, at different went that's through we little and impressed have evaluated they what go [ph] they're one only have, extremely meticulous, we one, a looked they the this early through and only others and they when employees the looked and of of got and come It's at -- very a the comprehensive physicians they've for it the marijuana, partnered as term of potentially I'm built we we of suite with were elements where in hemp at credentials medical just providing to were when they employees the let's the for licensing cannabis types for after, them. with up the doing in that the where that looked they down -- there right the for caregivers, start patients, missing

even at didn't go could that. We where beyond look we

financial, to got regulated. be know licenses this other would be -- lot looking different at it realized whether leveraged we highly are industries, we be whether As quickly be a would other a that could professional lot of them medical, in started of and their technology, it

how And extremely that tires at kicking worth how a it the But more very it built team technology just when and so the with hemp the looking we can was bring we us. there it started and that, started valuable scale deployed stand-alone and was presence was became this asset is with cannabis was impressed you beyond the even realized now it was it with and truly for an than it. market,

about this. excited So I'm very

Gary Prestopino

Okay.

a the Just the and based drove couple ISG? same that revenues more talk about of of questions. state Can services some transaction you

Stephen Kovzan

Yes, would quarter expected of driver growth payment Gary, earnings on couple for were kick New that ago this states probably starting recall some we I to processing to payment contract nice state-wide biggest this is that's our time mentioned in the call that won Steve. year there Jersey, previous see we the processing say had were the we some a in. the

some as in increases Also and in well. states Texas we've in had handful in of Texas sizable Indiana a of Indiana, processing in payment revenues terms other

myself, the I category. be are say the some say of Texas for you're asking Texas primary same I of growth. drivers want of included to in So the just same not state correct would I would would those When states

and New Indiana mainly other handful and states. of a Jersey So

Gary Prestopino

when with Okay. you And initial guidance, lastly severance? the -- contemplated was that your then gave was the

Stephen Kovzan

No it that the quarter we mentioned excluded severance. last had

Gary Prestopino

Okay. Thank you.

Stephen Kovzan

You bet. Thanks.

Operator

remarks. any call speakers or our time, this additional the to over back hand I closing And at for

Harry Herington

Thank everyone Central, Vicky. of XXXX afternoon. the tomorrow listen Hotel our joined everyone Oread campus at great And attend Meeting in the person Kansas. afternoon. Stockholder you University North this The Annual in you to to everybody Kansas have on to thank you, A.M. invite I a and Thank me, at of come see XX:XX located who

Operator

today's for thank you That participation. does conference. your conclude We

Nic (EGOV) 6 May 192019 Q1 Earnings call transcript