SYZLF - Earnings call transcript Q1 2021

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Bill Wood

Hello, and welcome to the Q1 Earnings Call for Fiscal 2021. I'm Bill Wood, Sylogist President and CEO. With me today virtually is Xavier Shorter, our Chief Financial Officer. We'd like to walk you through our financial performance and major developments in the first quarter, which ended on December 31, 2020.

Before we get into it, I should note that this conference call may contain forward-looking statements relating to our future operations and profitability of the company, any of which are subject to risks, uncertainties and assumptions, and actual events or outcomes may differ materially from those we contemplate here. made no except obligation statements law, required forward-looking have we to such today, as and by Any revise them. to bottom which like button call. submit also direct to this attention I'd the questions at throughout the can of you screens, your use to your Q&A as with I and others questions offline. to and we few of answer Xavier allows, a will aim the will time follow up since the I've speaking joining you Sylogist of of in pleasure had some November. early with I many haven't with. are But on of with whom the today's speaking had there call pleasure

and non-profit, Foremost, see to let for me be very with here. say value I CSR growth in that as Sylogist I'm Having creation excited been and company upside. in the decades, space unique spaces sector public a almost three this the strong

of the X, a fiscal did begin Wilson's Thanks at place. in like Jim for K-XX make to months, always with spaces public landscape familiar developing Although SaaS growth the When year markets on growth mode we into and largely are non-profit, been in I've the to in and entered to spent and companies before strong and the it both markets. XXXX customer executing SaaS foundation CEO backed alignment across have on of developments. career FrontStream, leading through strategy discussion is we responsibility My bulk I so me. employee I've the and Sylogist, payments, only a and I a partnerships innovation about President position. some and at few strategic of transitioning was serve my very provider and on is accelerating to joining these spaces. private acquisitions. the with building experience Prior solutions considerable sector recent have passionate in me, corporate equity centered I'd Sylogist to organically Sylogist’s strong social focus Sylogist non-profit, for been we October leadership and happen. giving technology companies and the the

our new directors; is Craig Craig Directors SaaS businesses. and our to were we on position, renewed accepting July. have Barry we Fernandes a We investor growth, Foster, the value small Board in company. ensure focused on Chairman. to to First, companies Barry driving seasoned I of leading Sylogist experience Prior CEO rapid O'Neil extensive conversations the several Lester appointed and and and added creation Lester cap the had in two Board with aligned

leadership accelerating to their experience and the going We me valuable forward. team are. that I'm will be And executive and in confident Sylogist growth

just agreement began. Second, we on before more renewed and quarter broadened favorable even terms days Microsoft our with the

expansion and we Microsoft the and to our we expanded week we accelerate cloud-based that with expanded our revenue flow we have and and I it an an economics QX committed are we're position, customers’ pipeline to we is previously, transition the agreement are, further to see since competitive to ended, build continued leading a the being improved in commitment markets readiness. serve In opportunities bookings that and provider out from the Microsoft. expect key partnership than available foundation had us highlight slightly While new want the the support more than technical to that so already better cloud. of Even significantly have we to feature what to as

our potential debt shareholders. without strategy. acquisitions, facility general as use used pursue $XX inorganic interest and can that to initiatives accelerant First, we in this growth for low see strategic acquisitions purposes. corporate very diluting be on we rates, the transformative to hand, million credit closed With we a can and With of a access

delivering at customer track wallet retail the expand M&A I Demonstrated impressive driving record partnerships lead worked call, addition a expanding confident executive my and technology she development, I'm executing the last scalable, unifying to elevating earnings the reduce of solutions, integrating this company several We FrontStream, technology years role be she I'm leader in company, Technology and LoPresti platforms Terry Terry to Officer, brings and great Chief key acquisitions, welcomed OpEx technology strategy. institutional. Terry January. secure strategy Innovation to will Sylogist Investor committed where and also highly Sylogist payments Relations, by an both a share, play and and a She's our early CTO monetizing team. to and product for innovation. held will new our in and outstanding role, with an

broadly Investor appointment of as financial recent contact. you those more of point the of community Shirra today with of Relations Manager a Our and Rudy Corporate here dedicated provides and Development

stepping told quarter up to investor to are call and this this earnings pleased well. ways sure our and story is often like quarterly outreach we're Sylogist other very Financially, we one, We were with committed serve. the make the examining resilience of and is up from we given last of mission business' face especially quarter the the economic nature Revenue critical solutions. same showing our environments in the year, challenging markets results, the COVID in significantly told

did transition offices. interruption have of the our was safety our one to other operations a already without team as Our workforce pandemic, in to we of able prior working much work members were largely to of work-from-home and the that remotely proceeded effectively for

unprecedented some we year. due to Although this solid through expect will pandemic, been closings activity have accelerate the bookings delayed bookings and new deal see pipeline

these from take in include remarkably stronger. is I our getting QX, you should things a few they strong position and If offer a points. Sylogist away

all contemporary of in build product integrate, going with to Microsoft, a stronger customer partnership us creation. to even through And Xavier those the We and which and and value have executing to and advantage a to drive M&A. to proven experience talented community, a now intend detail. over financials to of take and it we sticky turn full growth forward more like I'd take dedicated platform on suite team, a highly

Xavier Shorter

Financial I'm Shorter, Sylogist’s Bill. Xavier Thanks, Officer. Chief

vertical This material leading high and this industry revenue we Most a to EBITDA As quarter. QX strong notably, in in sector XXXX growth XX% Bill professional from InfoStrat to and acquired in our million government InfoStrat was public reflects April. increase services in division. margins. a revenue. X.X part rose seen was our in largely from have said, X.X growth revenue InfoStrat, overall Due quarter we which saw million last QX our

no live especially other from its a in partially X.X EBITDA in This which captured lower was search. implementation profit is project to pleased globe, QX customers. are in revenue XXXX. our number also due was our million, reflects associated grow million from X.X million software completed and This to our partially created to and our is that revenue of one-time NPO margin a for Adjusted comparator. X% recruiting a our revenue the notable an but pandemic longer the face revenue secure an down QX recurring new fees increase the since We see to $XX material headwinds, services, new increase this customer customer international multiyear has for than that in in of implementation in the now XXXX economic streams, with XXXX. This CEO prior on costs year is professional credit across revenue successfully means also by facility

margin However, to adjusted even our resulting forefront our with EBITDA profitability ordinary XX% put these out continues the fees, industry. of the at of our

$XX.X our In and a normalized total, some decrease of quarter to X.X more subscription to Earnings per primarily buyout in is software lower $XX in revenue XXXX last and is deferred million our up were we dividends was share our orientation the as historically the in strong driven current in in million, creation. acquisition services, $X.XX overall We now per cash, resources XX% a balance our end million XXXX course professional share facility, spent had this bid XX% liabilities which finished of the ago. has in a majority down credit from oriented us that USD than contracts. million the value ample with value million Our Return In QX, The gross contracts, quarter level, XXX,XXX QX normal million last with headwinds QX our no year. profit loss represent repurchases. growth margins profit Operating from up in [ph] year. invest shareholders, $X.XXX as year issuer our to remains per QX X.X in executive compared payables sheet other share Together $X.XX, for than expenses strong. normal ever. We annually a dividends compensation this from we QX InfoStrat loss due reducing fell QX, encountered which and At share billed and to the comparative U.S. as effect. and remained revenue dollar Quarterly one-time of $X.X investors its by was on up maintenance course million to revenue. the the were in redistributed currency to significantly $XX.X $X from following period QX are gives and revenue. our XXXX. of margin

Bill Wood

about I'd Sylogist efficiently historically can expect by bit speaking operate Thanks, going profitably. conclude and what customers value has a deliver us you Xavier. to forward. to from like sought to and

done sharing the our and company we've my work success With criteria. to the planning new value ago, and I continues, past after Terry in strategic the Over hiring a CTIO forward taking very to support, adding in weeks and well. That LoPresti, future. more about the creation growth that these aboard Shortly years, came look few I Board’s launched through few those process. a we're

the a themes. While would I'd the like to detailed broad few discussion of be premature, share future

organic First, we drive growth. are options considering range to of a

up my care now Our to the any experience. company's The stacks opportunity opinion and line competitor is potential. customer growth top technology very and with unlock well in

on customer the complementary slide explore payment in into our that looking on new opportunities possibly expand the to in monetization customer platforms, market and gain acquisitions significant ARR, streams grow bookings density already our side, of horizontally we increase our offerings. inorganic occurring the our On attention to technology strategic leverage to are markets,

creativeness of proven a playbook and with have acquisition track a upside. We record integration recognizing

planning and stable, M&A defining public top growth of In strength focusing continue offerings expansion. to resilience. In to for our our line process, Sylogist we part secure on prioritizing and our relative key and revenue growth of verticals. organic fundamental will NPO, to solutions the value again innovative customer will a NGO, Sylogist be be K-XX creation, and highlight in like and the sector As deliver we conclusion, strategic I'd targeted will communities. balance

margins its while the with execution economic the I turmoil. I that We and in focus, are Appreciating of to to the growing and be a that success. essence, is done. is alignment things uncomfortable time Know paramount plan of the but consider to get focus, and face many, ask for tend future pace COVID revenue maintaining healthy to to resources

in thoughtful our as relative to for be house is and time your few growth now will will evaluating in shape in Our Thank good I allows. you Sylogist. and we interest take shareholder questions interest. options and Xavier time a

Unidentified Company Representative

you, Thank Bill.

first the corresponding thoughts can share go-forward a how few on blend inorganic Bill, you're question, the thinking and of organic and you about strategy growth? So Sylogist's

Bill Wood

that question. for Thanks

our with our facility more a strong credit more access very larger, position strengthen we're position tuck-ins, to and possibly transformative opportunities. related needed, accelerate may in and M&A complementary new to include strong to Given go-to-market which competitiveness, even cash if IP targets our

substantial in in We’ll partner On customer we’ll efforts in markets making R&D, Sylogist we we'll creation terms sales of practice and leverage terms the to and opportunities. investments and high areas be the channel and customer leaning thought enjoys looking focusing side, in be satisfaction be opportunities. best expertise feel on leadership that the of organic direct value best present success. those

We our significant increasing repurposed, new opportunity be also are to as customers to already that to importantly, to ARR trust a and bring in-house and need and commitment us. and LTV, ultimately simply capabilities have their

Unidentified Company Representative

Thank you.

which So large the quarter. is and that should that the implementation customer naturally which subsequent year, was going reduces you project question, completed implementation Xavier, service now we mentioned forward? live How next the last in a revenue about means think

Xavier Shorter

upgrades implementation there will new be installed multi-state, were previous across required. That as a come years globe. said, that out, sites versions multi-year in was this the So

to have upgrades. So do they'll

with well as regular customer, So of there maintenance ongoing continual will upgrades a that associated be cadence and as support.

revenue ongoing forward, So of say customer. is and large, Microsoft. central of won't see the to as that we you well going upgrade implementation, that let's terms as getting This latest be maintenance support but getting in from will version

Unidentified Company Representative

did next this Bill, Tech valuations past M&A company Thank strategy? you. How few the have risen over dramatically your for years. question’s you. affect

Bill Wood

They spaces serve equity in certainly have the private has as years. been awakened and we community especially in very and the recent active

criteria companies, in we and again, be our through our underpinned modeling. consideration of strong lens value Given our aggressive. creation a feel position, financial of how In our we by drives is business, strategic, the can it

we experience radar not on approach, have, our in potentially sale opportunity under close and for and others, I and the can talk deals that to we of the themselves those relationships an of are others. us Additionally, gives may believe and identify radar this as approach space consider that companies given the being to without them

Unidentified Company Representative

Thank you.

are expect Xavier, as quarter, mentioned in going aren't fell mix revenue. revenue that an of subscription which professional part closer you a services, So, this what profit to part margins forward? profitable this anomaly or is because we should revenue larger Is this as

Xavier Shorter

takes to out Well, April in acquired fully and we pointed that to an we're -- roughly last XX back integrate acquisition. I still so months it InfoStrat year, us XX

be a more are of focused We services. a in to that business versus of product process reorienting

And services, of time. products and will see revenue, commands which revenue subscription that as prioritize going maintenance more margin forward. take will drive that drive we that more higher a more will we So

we So that profile integrate we as InfoStrat, margin see should expand.

Unidentified Company Representative

you. Thank

is well, one as Next Xavier. you for

You is mentioned currency considered Sylogist currency currency material to you headwinds How to contributor fluctuations? have as hedging? reduce And ever market vulnerable profit a margins.

Xavier Shorter

at exchange bulk in strategic cash acquisitions. report of of mainly foreign dry north on so Canadian, hedging we just maybe and given future. state of other hedge or happening we our fluctuations. to that. like initiatives, XX% is looking exploring weirdness of the the the powder susceptible be We Well, now exotic, pandemic, ways, like anything from at we and execute some away currency looked are entertaining stayed bound as anything the But economy Historically, business start could kind in on and we've in our the what's to

Unidentified Company Representative

you. Thank

for you, is Bill. question Next

about at are helm that seeing there a few excited that the that for concerned are or you're surprising Sylogist? now been So things for you've months, you're

Bill Wood

a did in of untapped as But homework before potential that. tried that the joining bit I realities relative but over for I and could not And little to believed to thanks a have And be as XX of generally opening I now The maybe my had being here. true, Yes, there's products in for days understated seat to highlight remarks. heard. in those themselves undoubtedly, a contemporary. I out of the what amount only proved are considerable company. the much

able much value of strong done. upside believe create back serve. been some there the particular the customer been between thing of within our to have in and on thoughtful. opportunity talent the we believe I pull sharing verticals that to IP I that's hasn't team think held I respective there get things is be the necessarily very is do place to the is the teams as acquisitions through of a the

system, our we strong we're I Xavier ability that being federal done they the make able additive have be result they're to the in the so that. the have forward. data there going elsewhere. extraordinarily digesting the before, level and going that and deliver the visibility we have access verticals and Microsoft that InfoStrat a terms of have utilized of And and side But to customers other expertise big that are the efficiently services the I make how to scaled be data mentioned interesting, business state merchant at is as recognized, in as is sure I been ability as strategic. easy more and dynamics delivering streams a even can a to solutions to those as sure need in and the think productized that I said about capabilities think ERP payment division, back to platform now of through they I'm our highlighted potentially and and intelligence our monetize on way on supporting. pulled

Unidentified Company Representative

now. plans you. company going speak Bill, and few through the that. a related like if we've that had I is you planning questions and could the was Thank priorities wondering things strategic to to process

Bill Wood

evaluation where needed alignment organic of sharing landscape assets our weaknesses sure how see in readiness where and well think That's strongest, to that we we as talent be that's so we preparedness we have. inorganic market the respective as the teams, that of terms being as technologies with have the different the Well, opportunities well a blended the make strengths a to the comes communication. sure first appreciate talent position we occurring, about see teams’ have We teams fully as combination make and can top-down going our of on state to that from execute. to that we able

in goals, to shared out share is reaching we strategy that The wellness largely to is as another, with has like The They well our and don't them focus what underleveraged is of about serve aren't this which when are in overall about improvements themselves general connected one accountable giving of communities as think other us we they idea I company, competitive. terms the in. forward would point, customer component another to see informed communities, how to feels one the move just been areas they their to how as the our unique go-forward are of that us see in competitive. that ability talk successes such with

them in best we've very dollars another. and marketing than learned one practices a of And speak best our from provider be partner in we as both customers. as better share product the that company ideas, strengthen time the about leaders if and of is is customers’ opportunity an thought far a that voice we can practices, so, voice market sprinkling This you our knowledge service of energy their And much therefore, to a buzz being really need being with our really to to how with terms market, that in and sharing around. lessons and of differentiate and part idea use just give the it own the well learned as market to conversation, create lessons with out

Unidentified Company Representative

you. Thank

Bill Wood

one what focused the ownership Jim of we going success more. both Out and [ph], the next are defined the terms and our the a but to the we on What the XX around term how we come blend items? with those to in associated months, purpose are Then talent, year that that has broader resourcing measure near and three. will plan in the IP of action What window, recruiting goals? are XX which ourselves two then look and really align over those will at execute ultimately years add and in basically make sure to that? can then XX-month terms of and one goals, to that are against

Unidentified Company Representative

Great. you, you, Bill. Thank Thank Xavier.

I think there. we'll up wrap

didn't of For get to, up whose questions follow you with offline. those you we we’ll

expect you for respond please that. to Thank So attending. a

Xavier Shorter

you. Thank

Bill Wood

Thank you everyone.

Sylogist (SYZLF) 11 Feb 212021 Q1 Earnings call transcript