GTYH - Earnings call transcript Q4 2020 | GTY Technology Holdings Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the GTY Technology Q4 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, John Curran, CFO. Thank you. ahead. go Please

John Curran

me good and and fourth I'm Curran, call. John and Parass, is Thank CEO. GTY's like morning, to CFO, With conference earnings I'd year our today's welcome GTY's call full TJ you, XXXX everyone. on you quarter to

additional results will slides available that note any contains that differ call projected statements those result. The anticipated. our release is during we on We Forward-Looking the make financial and of view release materially GTY this Please to information release be or Please our cautionary heading you the be the at refer to earnings based Statements. about actual true found presentation www.gtytechnology.com. presenting the as on Any upon change, website. made the we on that statements may earnings we believe under often in today. today's our encourage from information our call may website Things to are earnings and or release forward-looking in however,

including recent associated refer risk You most including factors our list subsequent XX-K to for and SEC our applicable GTY, filings, also to SEC COVID-XX. of our with filings should Form a risks

comments, our business time into in hear pandemic for the will an you is impacting our future. the and As today undetermined

better to we results refer our useful we call, or investors if help understand are to trends. may they if investors the it we During non-GAAP financial or believe measures believe business will

call that, of two the over the comparable financial Exhibit GAAP can turn our of TJ. financial nearest their With release. measure see non-GAAP to You a measures reconciliation to earnings in I'll

TJ Parass

all Good us. John. joining afternoon for Thank and thank you you,

XXXX high with and we pleased with solid on the year a are our throughout quarter. We a note execution ended

to the more move a cloud government remind modern more highlighted and technologies. Pandemic them moment Before, solutions. I has into GTY's to a is governments quarter's results, everyone make needs best to modernize of efficient, mission this take on want for to we dig breed

offices twofold level employees. the to improve modeling is front bring of every and with government government focus modernize and to Our to citizens' experience solutions

So, they're able achieve efficiency. to optimal

call, XX% full XX%, John increased million GAAP XX% grew XXXX, grew to million discuss and fourth recurring revenue our for to and XX%, Most year-over-year, million. QX, in As From grew annual the $XX.X $XXX.X to $XX.X million later grew a full revenue for XX% to non-GAAP compared million, the will revenue year. $XX.X perspective, this year-over-year importantly ARR or quarter to $XX.X year.

customer adding new and through Finally, technologies we back local that customers over had new additions, our provides fourth in cover offices organizations. the and XXX brands customers six more in year. than quarter a and government for cloud the very industry-leading state year strong new the GTY of front XXX

and city own of a any hours year, solutions permits days process their projects needed two in then simple a Counter our as be begin permits business with City Open citizen attraction as of be XXX permits made online. Miami decipher the guarantee Counter ordinary the announced CityBase for those front-office incorporating XX the These will the directly or permits business like to all XX excited eCivis difficult a And the a someone environment. wins eCivis that process opening entrepreneurs empowers lot new Open considerable for with XX% customers to that revenue new as Open accelerated City removal walking for of and customer Omaha recently permit demonstrated start in five Counter Miami, grew through with be to initiative. many the and earned required. into a all ordinary strength will in complex them new in and and year helping mobile can like enables Open day. tree start Non-GAAP Let's to Counter. from QX momentum Counter's citizens their XXXX, device Open [ph] a have for XX% new by Florida. gain year-over-year. as most improvement. customers We're by the a year

As allows existing transparency applicants by online, Open this into to visibility eCivis accurate increase of to solution, check part zoning continue gain fee one-stop event special offering costs traction there estimates. new counter's real-time around with portal customers.

impacted include very and operations, communities of City pleased Cincinnati efficiently. their need more special to to though for that expanded manage COVID-XX and Orlando, in-person engagements portal. return a our We planning forward-looking Salt the are these has City Lake all Even events to event are aspects

utility the all how of automating segments by Moving on payment full and government our CityBase, the CityBase solves process to make government payments your and of harmonizing you cycle. payments platform. to often complex local

sprawling replacing and with the CityBase collection time platform, Our static, of on-time more dynamic by websites settlement makes a improving efficient cities and counties revenue up speeding overall new the our increasing XX citizens' than and governments sales alone. team funding XX to experience. CityBase more with reported fourth up including in full-year the quarter fourth tremendous local state a quarter while and

of and to new select and municipal bills pay payment the the platforms the online fees visitors CityBase Austin One mobile to ability City these was of via customers who devices. enable residents

sharing and and County was its Another online more this partner payment sale select unified than the Denver, of modernize point CityBase to with cash win for of payments the XXX,XXX the expansion and of current the residents. as customer cost customer City

solution, compliant grants and distribute governments and funds. and Moving on organizations funding, to E-service, health help their use stay manage E-service entities grant our used of government with is to management

and finance XX new the year year the distribute the global finished COVID quarter, the Department These bringing key all solid and for community services using new total pandemic, XXX% showed economic with Housing increase XX the approximately with XXXX. eCivis California and have and grants. of of eCivis California imagine Department eCivis solid disaster growth Community funding. a Affairs, market eCivis of momentum With development customers, governments around government in Forestry Development. adding Georgia federal with help customers and are in fourth in Fire the local over addition Community teamed of the Department a the assistance to programs products critical state and recovery Protection, of expanded agencies manage

Bonfire and sector significant Moving the Bonfire annual public for on bidding Corporation. Waterfront continues compliance. vendors, the platforms And vendors Bonfire sourcing the the public procurement for and quarter, offering who are our the sector. increase an XX%. customers be Bonfire [ph] signaling budgeting new one in and Furthermore, XX quarter on providers name platform, Questica of of Sherpa driving adding our of sign customers as a of Revitalization total year-end Bonfire's overcome fourth and budget new the opportunities. the County, XXXX growth we budgeting of added dealing in units helps terrific fourth in seems of customers premium to XXXX with leading governments RFP transparency seeking a cloud-based as in fastest-growing and had it these to experienced Toronto released County, XXX XXXX. complex bring year well ensuring Combined new Barnstable multiple XXXX, in solutions for some units Harris finally, both rendering performance public in XXX total was XX that To selecting the to the challenges to customers processes, new

the XX%. of Mexico the from million service provide Fort of enterprise City budgeting coupled this and City name Customers million Housing New middle and customer of range billion. the $XXX ranging our like market The from the the ranging Worth Authority year the and customer just market highlight budget of the budgets a market value solutions in County in million Abilene State scope Francisco and wins customer to enterprise few. with middle of of San notable retention which market with $XXX to from exceptional Texas So, $XXX our eCivis to a the over $XX the resulted to rate

year. mid-market In addition wins to financials, turn mentioned, And over our I impressive to showed with to let it specific John the team me John. this that the review growth

John Curran

Thanks, TJ.

challenging As earlier, was was TJ what strong a highlighted a year. otherwise QX finish

for also demand quarter by XXXX the the of improved in We in financial for significantly flow over we second million evidenced $XX were has logos TJ point quarter as I that products of up raised all new discussed remain should XX% in our and earlier. revenues GAAP to row. cash strong Our saw a positive we QX, in capital. out condition as new number our that the

our We'll in basis, XXXX non-GAAP compared on a XXXX, of an in GAAP our press XX%. QX Exhibit on our of detailed and results quarter, explanation results provide for $XX.X is Moving in XX%, QX of XXXX increase between GAAP the $XX.X increased subsequent in slide. a more On revenue in A revenue change reconciliation in a million X million included release. the our $XX.X with QX of of $XX million to QX revenue was with million to financial compared XXXX. non-GAAP

operating our total expenses, continued we QX million in of our in efforts $XX.X and non-GAAP XXXX. Fourth-quarter operating million expenses. our control and XXXX GAAP in million $X.X sequentially compared operating saw QX to $XX.X loss slight was with XXXX, of a cost loss decrease Turning a of

expenses. decreased $X.X the in in compared primarily QX revenue growth by million million Our fourth and quarter-over-quarter to operating quarter non-GAAP operating $X.X in decrease of loss driven with XXXX,

the XX%, in year $XX.X on $XX.X And from debt $XX.X million increased non-GAAP from full in XX%, basis, million XXXX. $XX.X For million our revenue XXXX, XXXX. increased a revenue million

non-GAAP compared operating non-GAAP quarters, with change to $XXX.X GAAP decreased in loss provide to XXXX. our compared previous XXXX, $XX.X $XX.X more on little full-year our we to million color $XX.X in with the For wanted million narrowed And with Consistent operating in revenue. a million XXXX. the million loss

within XX% recurring a is As by for for basis full and volumes by year the year-over-year CityBase driven our revenue grew payment revenues XX%. you our by on see business. seasonal in QX can basis. chart, strong recurring quarter by this revenue a XX% the grew on Recurring grew quarter-over-quarter

percentage of revenue revenue revenue can time. from expect decline due software we to also professional kiosks we over revenue And large includes sales service and of services quarter to our percentage that to the base as continues recurring revenue projects. to license of sales a as a timing Our vary as of to Other decline expect grow. quarter of

digits We growing other to mid expect revenue range services low and recurring XXXX. revenue single high for grow the XX% expect with compared in and our to roughly by XXXX the will see

grow our continue revenue sheet, balance other and there will higher we in to three like base terms business. look of discuss. continue Taking as I dollar recurring to growth service our be areas at and subscription and are Our would a revenue percentage to

by The our in change decreased which this is our by driven the collections. quarter first strong receivable $XXX,XXX continued

payable The due is to second accruals the severance and an accounts in payments. a of area $XXX,XXX, quarter, decrease primarily

which invoiced in have we area we the the earned our associated deferred quarter the started QX. of the $X.X million The amount burn and with cash. increased third From excess an subscription is million $XXX,XXX. revenue billing we in down quarter perspective, revenue quarter. cash ended increase perspective, of represents in with This From our operating this was outflow a in from in million $XX.X $XXX,XXX roughly $X.X amount

We out the in $X.X million. an quarter in strong in also our paid $XXX,XXX than working at behind higher primary interest CapEx and in billings $XXX,XXX the change $XXX,XXX inflow capital drivers perspective were quarter. From expected and collections the severance, in

deferrals. received tax payroll also in $XXX,XXX We about stimulus from U.S funding

we Finally, of implement we from efforts, net current ability experienced sales raising on our $XX.X million in churn tariffs low to new view believe we $X includes into proceeds to reduction $XX.X have financing XXXX. perspective, date, and cash, cost products, debt our equity. we sufficient and in rates million generated Based million the activities, have additional our this our

quarter Turning for full-year XXXX. and the first to our outlook

quarter XX% For approximately or in be to we year-over-year million growth. of the the revenue $XX to XXXX, total $XX.X expect million first range

revenue will approximately be For the growth full XXXX, of million growth. $XX $XX grow or total faster our range year-over-year overall million the expect ARR to than in to year we revenue XX% revenue. material continue environment our We the don't our base reductions in of business budgets about expect we to build the as recurring near-term. improvements in in of customers; concerned we our remain

be for in full severance. XXXX excluding We the expect interest year cash flow operations from positive to

that which year invoicing year than the things distribution However, the negative let's second first seasonal half to half turn and in of With of cash will in our be the flow cause lower back first us the second to TJ. renewal half positive the is in the of half. the

TJ Parass

Thank you, John.

XXXX reflect As our a which customers. to look take XXXX, moment a wanted was to year challenging on towards we for very I

pandemic a our from to customers of hold, scrambled As employees working transition as took home. many

customers. certainly by our our by a affected the been base shortfalls overall to supported reforms and the because as property Government many the of The increased The are focus remote of increased budget significantly an costs, Our customer's which specifically, are stable of there services XXXX, core created customers. on while COVID support and revenues GTY's revenues services. based more increasing and however in the to contactless constituents. tax. was are operation of pandemic like all to others governments Prior But efficiency general taxes, sales for provide was variable tax. and continuing Cloud support. on change has trend lower variety operations, primary become importance of solutions to tax to contactless variable for government efficient, government services pandemic has technologies. activity very The volumes such cloud to [ph] more designed and this inherently solutions and move

that the anticipate ready vaccine be spending will most current market than As economy and XXXX continue be in that at stabilizing will until the and in its distributed. when the of factors impact largely later we revenues turn anticipate XXXX. return We year like should to the pace XXXX, economy anticipated stimulus higher could all our opportunity. to are of about favorably tax There we

currently them. our we XXXX are forecast anticipating While factors, keeping eye these close a on and

our a the XXXX revenues growth. XX% will thank thank and enthusiastic I in XX% was a We big focus last inorganic to the summary, GTY for GAAP adjustment customer our been strong growth, expanding cost government satisfaction, year. the efforts staff be risen in want management, growing great to by questions. challenge. a flow to to double-digit over quarter we and our achieved have COVID a to that, and were opportunities I'd and cloud R&D a the the like reviewing at everyone strength year. second for demonstrated quarter turn with it be solid to top-line take you over In row. continue minute company's their for solutions, for operator about government's transition and to It's continued high the and We achieved our and With the experienced in and efforts, trend up quarter core the in cloud. achieved year this positive for cash organically, to

Operator

question from Scott with [Operator Needham. Instructions] Our first Berg comes

is open. line Your

Scott Berg

here along some more the versus in now on John. governments? of talked current much the a to customers about How unwilling short-term we maybe maybe good taking I half expecting are much or Hi, two, that and to the think should some start TJ, in Congrats second and for I concerns local maybe have versus year. processes quarter environment. because the spend signing is all and new thanks processes I just let's they of about for their guess, off the questions. moving you change developments budgetary in that not there of internal as hear state deal TJ maybe positive the

TJ Parass

Thanks, Scott.

from would just you're broken that. we and working getting so home XXXX, So, do they couple by like I if were early it were back were answers of is back to was to lot to that, getting rewind say to processes

close some trying we're then, a were of and on we're that. of have cut a the on they the goes. that both budget And If starting that need states and [ph] sides looking back that on lot keeping Cloud for to and back or eyes budget are they're keep on that technology equation anticipating us. fleet we're they reporting an seen of are expecting, past to solutions automation is that the for the processes eye help finding, to eye bit a the on their shortfalls work other improve to were that of turning Now staffing to thing not get they that

withdraw declining what how of much and they So happened. I actually think sense in revenues anticipation back a

we're start got see of being this on we've we close will keeping the budget up a as we're now budgets business large year So, close seeing and those a they budget information eye the watching and a that. lot unit,

Scott Berg

in believe we'll in perspective, $XX full the release Got growth XX you talk the quarter. million million you press it. John growth a And of numbers accelerate of confidence think maybe follow-up which In about use from the talk XX% %to does going revenue rate here I $XX growth and then is, year? rate, to the ARR guidance quarter XX% the your XX% year, first we round the But through growth the part which for year Helpful. your about to in how ‘XX. kind and shape fourth that is mirror modeling of balance the should in

John Curran

Scott. question, good Yes, Sure.

of a out a we little bit coming of have QX. headwind So,

and, fourth perspective So, we tick normal cadence. decline normally to a up their going would again did see as QX, to the payment we CityBase actually seasonality in from it's see the QX volume in from quarter

we're for So seasonal come year is their anticipating back. pattern that to the going

lower highest QX. normally QX, So, they period with the QX would QX, see being higher lower

XXXX. anticipating to that are we re-emerge So, pattern in

So little QX headwind why to related a a volumes payment from got that dropping. explains we've bit of QX to

Scott Berg

helpful. Great, Thank you.

Operator

question next Our Jeff comes Craig-Hallum. with Van Instructions] [Operator Rhee from

line open. Your is

Jeff Van Rhee

revenue thanks several. Great, it the other for questions. John relates as have you the you to your my splits, Do the think is believe. I've I got counter which numbers products? shared key Open I taking for

John Curran

So around budgeting XX%, just bonfire XX%, XX%. combined XX%, and eCivis CityBase under

Jeff Van Rhee

in the QX around Okay, what's that's services? you of in commented expectation the terms to professional helpful. a services lumpy the And QX implicit then implicit what's guide being there,

John Curran

it We're a to expecting be higher little QX. than

Jeff Van Rhee

TJ, maybe relates as the guess bookings. I then, And Okay. it to

you customers. curious, few full have Just a bookings you of obviously a may illusions mean added get number I we and lot don't

quarter? the value expectations of very, September quarter customer very in booking's out signed the capture, seemingly the curious your good I'm coming about So, maybe versus

TJ Parass

So on center? a relative

Jeff Van Rhee

you sort this the of Yes, variation quarter. on your Did any as you in mean, did coming line expectations compare sense post. you'd how to you just progressed? what quarter with was thought see I some the into

TJ Parass

Yes, good question.

of in QX. what a expected So, little ahead we we were

Jeff Van Rhee

churn did obviously churn are? how the you products? Did what the you the it on front; as customers versus a tax any, versus driver there budget see tax any was the And churn depends said, the you Okay. and quarter flows in then products property right from standpoint end is What notable? see stable on other amongst in revenue variation there within start that use

TJ Parass

saw typically to the were. was was [ph] session numbers in looking effects COVID to published, the I just over relative I the actually XXXX, stayed we but comparing just see Churn what contraction them Yes, churn quite we at overall, but more as higher the numbers. a bit then churn little XXXX, in happy same we churn like about saw XXXX as bit little a the net then

Jeff Van Rhee

have Fair maybe by-product kind it capture it looking the enough. And might the standout, and a was the like what give that challenged then budgeting and terms of very again, one a the the at the was at most certainly of bookings in bookings for year-end number you when looked into us end the or quarter least strong was maybe at side. you end But look of there was the in customer customer, budgeting that maybe what glimpse drivers. sort customer

product So you headwind did see in the where momentum stat, the quarter? see do most most you the kind the just what of and within

TJ Parass

we quarter I saw, you this year. mean in Well, amazing numbers saw bonfire this are

good some their pick seeing posted starting up. seen you're well, there are of is you've mid-market, movement So, Cost consistent is numbers a [ph] growth. what to

lot revenue some flows quarter, them in the in described had the sales past as we've a in require later. CityBase we of onboard Some that that great last in

so kind their they in a had uptick significant, sales. they've of So

have the year. Our pick permitting been that a because pandemic, been the bit of little area up ones had of quarter. this counter the They're open down this has a good

like pretty doing year they So from year. are with been last the are has and what up good

a eCivis of gives also. that certainly up and is little idea quarter that hope grants I bit So, you this an

Jeff Van Rhee

Yes.

on in sales What's TJ, change Okay, then structurally structural one, move sales. org should think great. list about just in the goals of your in maturing to-do And focusing terms kind is on of in ‘XX? we of for ‘XX just terms what your you're last

TJ Parass

Great question.

sales are last they XXXX we that hired matured, bookings team making the really team -- these sure that now So [indiscernible] we've last increases. our in been year, the mature through in focused QX

what's that; teams. of focus to so and now expansion thing there growth expand on Second is in start successful so on to

a call across cross-pollination, making work would call works, learning sales, and what sure what of sharing know, we're units. lot those internally You are call the experiences what talks doesn't different I we them business Ted about

largely greenfield a focus their XXXX highly with want that growth For so we focused to because sure we to expect the in much we business make the they own that. units teams, it's keep see organic stay sales teams and on

Jeff Van Rhee

questions. my taking Appreciate for Thanks great. it. Okay,

Operator

turn the remarks. There at questions further back call closing I'll time. are no company to over for this the

TJ Parass

talking I to and you quarter. thank to want next forward everyone say look just

Operator

concludes This conference today's call.

disconnect. You may now

John Curran	Chief Financial Officer
TJ Parass	Chief Executive Officer
Scott Berg	Needham
Jeff Van Rhee	Craig-Hallum

GTY Technology (GTYH) 17 Feb 212020 Q4 Earnings call transcript