AMSWA - Earnings call transcript Q4 2022 | Logility Supply Chain Solutions, Inc.

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Operator

Good day, everyone, and welcome to today's Fourth Quarter and Fiscal Year '22 Financial Results. At this time, all participants are in a listen-only mode. Later, you have the opportunity to ask questions during the question-and-answer session. [Operator Instructions]. It is now my pleasure to turn the conference over to Vincent Klinges, Chief Financial Officer. ahead. go Please

Vincent Klinges

and Software's Ashton, everyone, welcome and Thank Quarter good Fiscal American Fourth Call. 'XX to you, afternoon, Earnings Conference

such call are to time, growth I'll of opening this call. statements, to regarding, our conditions, statement. differ this review This revenues. no Allan including information is the numbers. and accurate. But date. American materially light the and statements and provide be in this remarks. changes with could economic a anticipated I'd services, our of beyond uncertainties, are the call competitive uncertainty predicted forward-looking of strategy. only safe and materially actual rate results differ pressures risks other strategy there forward-looking and growth by products of products the for opening but over on In business the those made the turn to products harbor will to availability and These as our that to and factors and be based on effect statements pricing market of market like timely forward-looking be acceptance set and factors results some then of the that call statements not number will pattern underlying for the or and Software. irregular and limited largely expectations unpredictable and from things, a may At Allan Dow, assurance and among our competitive remarks, prove can these There from conference Any other first, those include, statements CEO general control. speak are and services, to, cause of our and the on Allan Such could On forward-looking of the of these some President, risks me contemplated subject contain forward-looking cannot statements. quantified are of Future which and forth developments are or actual number and uncertainties,

Allan Dow

Thank we Management whole. double-digit pleased consecutive growth of each segment growth which Chain of in report revenue was the you, double-digit a as during a Chain that strong Supply quarter segment Supply in achieved Management fiscal third was fourth our by quarter, Vince. quarter company revenue This to and revenue the XXXX. in I'm the driven growth, our for again double-digit

partnership issues. very had We pleased expansion margin normally with level of expanding and and Our events, and retention, pandemic, in-person the and strong not our their continued extended clients supply efficiency chain top-line the spite supply in the anticipated from our work. a and IT the recession of a the all accelerated chatter to as pressures fourth to and to uncertainty, in significant chain which skills. for to organizations of as performance of lingering demanding especially of client history, across and of fragmented how ahead our and space, are employee pressures, repeat expand their have and shortages licensing project day-to-day the year the inflationary grapple will working technical fulfil none chains level of marketing all frenzied team their ahead. short-term of We of in a that with but recent return our growth we implement expected utilization project from and a inflationary that invest timing the of anticipate meetings labor competitive in our business tempered regardless services the of chain with continue they are potential We EBITDA to in world high segments. major continuing In impact Between investments quarter this the growth growth market, expansion and EBITDA their supply model supply achieved impact of a across us very struggling needs are address revenue backlog to continue business. invest a year of as years of Staffing while in pace our the us of are with 'XX the events, we plan clients license higher activities the we the extending accompanied continuing aspects approvals the of current to was cloud needs hiring fiscal the team, healthy contract travel. best clients continued revenue in by continuation in adjusted our growth suits immune, environments, as in the The operations. gained in quarter a be by rates and growth our business cloud

However, see continue steady we in our improvement to pipeline conversion. a

decision-making extended has and mindful levels RPO. clients pressures rockiness in project spite pushed approach supply backlog chains some recessionary project prescriptive quarter sustainable never more augmentation are increase, staff to due fourth a our timing and the we to way. holistically in efforts, new may challenges, The disruptions, pipeline rate labor and to of the potential some in resilient close driven our by rapid need the quarters strong our to for been progress and that In our the cause has for in Our demand. manage unprecedented and need Overall, ahead. continues economically our their

a and we larger year So poised confident strong between are execution, we improved for a that opportunity remain set ahead.

longer more view, our bringing deliver ahead. in will implementation community utilization efficiently continued all and always year-over-year we increase the clients, before. client we teams, The of professional on in ever existing focused supply The a and margins still than influence. services Our high more assist in in backlog, the delivering consulting team delivery sphere little chain across but services our services on downward consistently the little months relying are our services more our a is business anticipate and on hours, growth, increases which growth into billable continued on year revenue partners to for which puts reach pressure new but strong companies summer commitments, in SI serving the choppier and rates are the

During or quarter, the completed transactions nine subscription strong license fourth fee and four countries, clients new presence. in welcomed we reflecting our global

was of cloud also last continued quarter compared to XXXX. revenue we in by of growth We when pleased see year's revenues fiscal are which stream XX% represented ACV and the increase cloud in approximately total the our in quarter. This maintenance, the fourth recurring to services driven services in saw XX% fourth

in continued and cloud on-prem see to revenue we community, the of to stability increase new With recurring and revenue percent contracts our rise. a client the total subscription continue of expect as

revenue, the timing guidance our we to recurring financial With the current on is expectations in the level provide feel right year of ahead.

of As revenues to recurring we including revenues $XX total million million. we million, $XXX.X of $XXX million look total forward, $XX.X to anticipate

revenue million. aforementioned come the and to and in in adjusted XX With future investments our $XX growth, between anticipate we EBITDA

plan into forward, to the quarter with we to our a clear each these annual update guidance goals. view against our Moving provide progress community investment

weeks performance metric, to be perception for longer services tends for and business XXXX. to summary, To can our long-term contract than and will new and our guidance We of net outlook expect revenue skew financial forward our progress our days simply In extend recurring next we is did quarter. in be against variance timing improvements remain does our focused model perspective, assume no As in performing. ACV a assumptions execution, we're of the reporting of ACV quarterly our growth be will that is growing we fiscal fiscal which the the focus with cloud quarter fiscal the on ACV basis, our on based the how year our intently results to primary service reporting we executing incorporates for our XXXX and on of lumpy which fourth look or pipeline add clear, more ahead. a pleased few cloud year-end

successful that client we clients results. who attract community expansion making is for the in call At year retention partners. over financial the details our new capabilities turn managing off on will innovative to mission provide to sustainable time, year paying Our clients of I'll more chains supply this and our after as introduce of our Vince,

Vincent Klinges

Allan. you, Thank

the for increase existing $XX.X of by and million, revenues customers, which fees, deal. license subscription the including quarter software revenue XX% came last $X.X with million seven-figure XX.X%. million, an compared from of quarter Included fourth That increased in were $XX.X year. a $X.X to to lot while increased year's year-over-year million So XX% one last at same XXX% driven transactions was several revenues license to in period

of revenue to approximately and to existing majority We see expand a our typical quarterly million more continue cadence expect a customers quarter. vast we a to back revert license in $X.X the cloud, of

last million, Our and XX% contract or $XX.X in ACV, value, same increased $XX.X that's to compared Cloud period year. million annual Services to the

new added $X.X the and million during XX% of quarter we net ACV customers. from was So new new net in the ACV

our services a year the IT reflects same and timing million our million our year-over-year XX% unit, period XX% Method, looking a The Proven also an to $XX.X So Supply of project in from due Chain professional XX% to other revenue, work and at that increased consulting in increase $XX.X ago. increase increase unit. business

XX% of fourth falloff declined same of license fees Total the X% due level subscription total quarter compared unusually to is in revenue to the this of period maintenance normal quarter. current in comprised for the reflecting a revenues to maintenance rate million, decline $X.X quarter. Our this representing year, revenues in year-over-year fees our recurring and and high last XX%

for at period the Looking and compared the to last year. increased to quarter in margin, XX% current gross it XX% same

to and fee of same XX% year, amortization due compared expense. and increased the last gross to increased subscription software primarily margin that's subscription revenues in to Our cap period lower XX%

noncash quarter, XX%, software period. that's gross the been versus in have with Excluding expense amortization cap software last of and the $XXX,XXX of in amortization prior-year cap margin the fourth of our year, being $XXX,XXX would XX% the subscription

license fee license was to last and Our revenue. year, XX% due primarily to higher fee margin XX% that's compared

XX% rates Chain our business due at margin to compared by decreased rates business. our IT staffing XX% year, unit, utilization services Our last lower to higher primarily offset partially at to Supply

Our quarter for period the year. compared was maintenance same in fourth XX% XX% last margin to the

XX% compared the period for XX% Our of same gross expenses the current total revenues were year. to R&D period last in

to compared were to total of And in revenues quarter last our the year. the XX% expenses same of G&A for were quarter in XX% marketing period and sales current XX% current expenses period. Our in the prior-year the revenues compared XX%

to increased XXX% and net same in adjusted variable to year. operating in year, amortization or per $X.X option On income incremental adjusted same compared to noncash recruiting million audit X.X%, last intangible this and of to operating earnings same a the $X.X adjusted same to go of of increased to earnings -- to higher period which in year. and $X.X share of per quarter of earnings $X.X Adjusted of high compared year. to million expense, or income share to $X.XX diluted period in or compared last income increased On quarter, last income an fees of acquisitions up to million XX% share our $X.X expenses net $X.X million the to to stock-based accruals the million to and adjusted $X.XX period diluted addition XXX% $X.X million net net G&A our in year. $X.XX last expense-related that compared the XXX% income $X.X and incentive year. increased compared EBITDA In basis, period basis, last income last share compensation caused diluted increased Net million million the compensation adjusted $X.XX $X.XX insurance to XX% compares additional fourth excludes diluted adjusted addition GAAP to and stock to

quarter for period Our current to of same XX% compared were approximately revenues year. international in revenues the XX% quarter the total this last

an fiscal and balance year. dividends. full continue was XX% for quarter, million our with to income Adjusted in fees year. year net as increase XX% last at growth of and exited or to increase the operating Adjusted million, of of months XX per a X% and RPO, bookings and $XX platform. $XXX.X fiscal the total year $XXX that from cloud the we same that's commitments $XXX.X from financial $X.X of cash $X.X during services, to the of million, year-over-year And year. million $XX.X $X.XX and an offset end an increased the to this increase fees in representing remaining sheet, arrangements in partially longer-term per last XX%. representing our XX% investments performance compares due duration customers revenues the the our adjusted $XX.X increased We totaled license in million; Adjusted to strong and of XX%. $X.XX share, backlog make diluted at increase quarter an decline quarter, is at $X.X our period a past $XX.X to increase 'XX, -- $XX.X share period of same reflects increased or to looking a looking and in position $XX.X our revenues. by remains and paid EBITDA million, this we compares million million and maintenance operating or a over in to XX% obligation, which that of to $XX.X representing with RPO million or up to subscription approximately the compared XX% income our margin Taking So the refer 'XX to X% Strong million ago, margin last a margin million EBITDA million, XX%, diluted operating that's million the

Our on of billing continues earlier, to as sales collections visibility last decrease was days compared revenue due year. providing primarily April days and our improved delayed XX when mix same timing outstanding and recurring And in mentioned for that to the Allan greater of current rise, This compares year. the with in us last period to XX days period, collections 'XX of model. is financial to as our XX,

quarterly. guidance, result, a to believe annual update as will the right we So time we is provide which

the in to year-over-year $XX range So XX% a is for our in revenue in $XXX revenue, recurring million -- guidance, million this growth those anticipate and $XX.X $XXX.X is of to revenues. million which we Included range million. 'XX, to fiscal XX% in this revenue recurring implies recurring an on

we heightened far. sales the our in in recognize potential year. 'XX, rates not into this thus for outlook fiscal amount could account have limit elongated gradual macro Given improvements revenue That pullback which said, our a uncertainty, we and takes close could the cycles, saw experienced fiscal the of throughout activity we

continue to modest our we churn forecast, historical only Additionally, with norms. consistent assume in levels of

growth adjusted are reflects to of we the range, more EBITDA, across million compensation events. and to $XX normal talent, planned higher the aspirations, to headcount to we guiding which and expansion $XX million our For levels return in-person to marketing increased company travel support as retain expenses

call time, the Ashton, we'd at turn this like to over to questions.

Operator

first our from take with will Blair. Matthew We Instructions] Pfau [Operator question William

Matthew Pfau

start the a just macro on to Wanted bit.

the just rates conversations it Vince, how improvement enter they're 'XX? purchasing of in that with seen So thinking you you've customers that terms commented all gradual like changed consistent a fiscal seems close and Have quarter. as in throughout about you fiscal at remained fourth your 'XX,

Allan Dow

supply and over the face in a this disruptions a Thank to facing interruptions, and That's continue really here. the Allan the coming, to at chains I've been seeing one for understand this recession, the just years. sell, sell. see of ones been the the the historically, change in those in might people XX When a the products or which think not potential as last have couple some the last Matt, good one. question. we at changed you They disruptions years, today. more we not point. We're keep and continued profile, of for eagerness to flowing of that that of they've These are address challenges I demands which way currently be

make unfold But some eager starting you comments of probably So just that, at made. We're as picked just news year. keep they're anticipate want we year ahead. with we is of new front started the in to we this the that collective -- And share fact us. of to the guys thinking on and on we sure going cognizant may point. just you to year our just up We impact the the

Matthew Pfau

it. Got

that of I help believe address? an CPG or with right can retailers you in area and interest think had sort driven assortments challenges as stock. that's have any your retailers companies demand I guys Has some having that product in additional the both products

Allan Dow

sure. for Yes,

stand For -- they're and the of can marketplace. the starting forecasting very is you for season. Hard the where to to in area delivery whole now Christmas whether Hemisphere, and the online imagine, now really out imagine a out is we in right that's but the expertise when stores preparing for of retail couldn't retail are coming This better channels, Sun here right get hot imagine forecasting opportunity primary and as we Northern the sure, is reality. That's Matt. concept And true. our all

So it's It's of complicated a view. long-term view, and expertise. area our a that's

that's a it. better managing one consumer of forecast. demand. driving a supply do more They key be job they So the job the do that's with feel can reactive They of and like chain areas the better to can

on where spot the of you're with out level urgency today. is playing So

Matthew Pfau

the fiscal some there. it. with investments? from But I appreciate towards? investments are and growth in as Got travel increased retention those hiring there's 'XX, And a in well directed as Where or what about expenses

Allan Dow

really areas continue Yes, to business, we our to the in expand R&D of want organization. all

on making team interested with shift is that's of the strategy, to So moving We've to actually and now. willing right a talent our blessed where get can access a with moves coming we been board bit us in some lower-cost in there. areas

got pretty headcount, growth in organic capability execute even we're of want managing on So a ideas that a we lot in improving we're and costs product though But effective it's actually great there. from way to we've area.

We in we there. to the have We and still So opportunities coming going pipeline more see us. we're coming. increase see to inquiries to continue growing, invest an

be to from we marketing need and to a standpoint. So sales that address able

course, offloading can't our of even work we're all marketing. more ahead. We continue demand to more partners, well. as sales a in we're don't they fulfill can and SI we've to year anticipate the great going they though channel, in the and SI then, So to built and And invest

So we what of clients. to all sure can invest that to augment services got we're we the mix continuing to need provide business can't our we've they They to right in make provide our talent services the that provide.

And they on with that capabilities bringing expectations talent abilities do be what our collaborating from in have, can deliver to able them, and make we expand. we're augment talent continue their will sure the to we're project where in invest So to these to and they continue clients. going

organization for and So HR me, I except here that's there of an expanding, with Vincent, the really the quick not in we is think deeply he today, not room answer area and sitting is, team an to finance great need we area probably got in. an services invest is one we've in have any place area and the a don't that's maybe additional

Matthew Pfau

me, for guidance. look just one the if Last Great. at I

we should if it? 'XX to be your So over I the two rate decline the maintenance would at revenue right similar expect that so, in 'XX. Is somewhat would And fiscal the years? think seen fiscal component past we've XX% a way then imply think to over in that that growth subscription that about

Allan Dow

That's don't exactly way a know We Yes. in. will that it. how to at play good look

in that our see areas to see be cloud. the some the of in of the item maintenance some we'll where the bit Although acceleration than will a is of around maintenance, move continue the conversions, substantial to line have we more we'll made I client we've some clients an past one cloud traditional retention, and investments in decline, think and

the But in our we rate seeing bit a we're had up back right is lofty factor there a maintenance conversion retention with levels pre-pandemic. there. So of now, on

we're with comfortable existing number. still but in that So that that's level, churn

the that model to a way historical that. levels So good traditional is

Matthew Pfau

Appreciate it... Got it.

Operator

Matthew Galinko next now will from from take our We Group. Maxim question

Matthew Galinko

the a I terms you in now quite years, Congrats business the, term? I over you get you them quarter. guess, to what last margins firstly, of continue driving the thinking has this get And opportunities Maybe subscription of Where are guess, on bit strong to about as intermediate to? you learning higher? how can over that point are up the that scaled couple subscription

Vincent Klinges

Matthew, is Vince. this Yes,

that to XX%. grew growth be a we it -- we're back the closer kind from on half XXs, years now, little We approaching eventually, higher conservative way thinking But trying So the And the to possibly we margins XX%. of of two from nicely do be think is we're from by the of last year the compared XX%. 'XX, bit margin. we'll be XX% side on of the yes, like fiscal to XX%, to -- about

Matthew Galinko

think cycle retention. as customer sorry, just guess you about Perfect. to talked kind anticipating uplift out? follow-up investment I'm service. that the of I plays What that, you -- uplift discussed significant to And uplift And think from then I conversions line revenue maintenance I a on are in -- you as

are is conversations Or feeding conversion those So independent? that opportunities? those

Allan Dow

They're Matthew. This very tightly way. like by the -- great Allan, question, is

new predominance about which conversion, comes but revenue that, margin is with efficient points typically a incremental So on course, lot get at front each -- not a better but But of those. the up X.Xx better of providing the it and one they client more than on are. at light We're to like it. conversion, with services happens the of a typically We're like-for-like community. the it, the for the it. of in that lift. see we're more quickly And them for We're we're security we some at user of releases put features able

clients value. time along that, lot lot again of for aspects And and it. of ROI incremental of are our them, that's So great time there's with seeing a a good a

just our is to when on X.Xx Related an the easily of the -- mean it's then conversions, and they than it's much part pace more from adding they is off a though, probably of how project, bets a of what's map. some the good point, Xx, so but see what occur like-for-likes more doing you're model Xx, that. when at as drives in of More clients interesting expansion expanded times over all Xx with non-like-for-like footprint comes conversions that not, that the behind the for So the want to to of business revenue minutes their of or and could scale. want They're pool, get their with and ago, IT They they related they one. as that can't we any the environment around them up to struggling things offload platforms we're they're I simplest to see today, the secure they do they're and us or a IT well-administered out. know lagging partner is they of chain. that resource have safe day they security a in to day is or pointed the out struggling and concerned with going and lift keep all depending few out that they're kind supply know better that, and I issues and and

So to platform that some footprint consolidate the can legacy it's up value be the oftentimes, most supply expand and that by and to pick with they're driven view off at a capabilities for driving, us. tools driver. platform, planning, chain But opportunity, desire looking come to the a some struggling single new to

conversion are are level. And things towards really continuing more more the cloud to and the clients driving those So all of push discussion that that the conversions. around all aspects are

in three past, probably in I pace the then only we'll year you has the modest. out if been the we've to ahead, or And done to is two increase. think number going years, So that continue which double conversions of look fairly

revenue the with -- we -- didn't coming we even the numbers we in saw new more So forward. clients fourth cloud environment, clients, see a into we perpetual spite what of any did license but all declining with those and more the we'll transactions quarter, see existing and bring in

to answer Maybe color I've there. the little it. in Matthew, extra up your add hopefully, a questions to of picked both So

Matthew Galinko

excellent was color. That No.

I'll along. So pass it

Operator

from We with will Anja our now question Sidoti. take next Soderstrom

Anja Soderstrom

year. the quarter on Congratulations great and

touched just shortages How you've been this is So year? on do about customers? I'm about how delays color play trending in with some that And you curious you you more talking the that sort your but staffing on it, could -- the of the now? give if at deal out us see

Allan Dow

Andre, could muffled. was question I for catch completely the me? little It a didn't question. repeat that you bit

Anja Soderstrom

Okay. I'm sorry.

up Or talking been see How about before that you've now? pace? at issue at due your shortages you Is some is developing that to that -- picking still do on your deal Just delays customers? staffing customers. an

Allan Dow

Yes, great question.

more So the just we're was than thank recent saw you one the mid-pandemic of that Yes, delays wave the we shock -- at -- pandemic of well. of six we moving of bit as seeing months we're year factor the our less for We've shock kind as people. staffing first that away, first fiscal did year. year of -- struggle first, we are the pandemic, this seen calendar few lingering people came little of that and then shortages into into there. the that we with they got still a a end having But enough term projects less have

they that they we get steam had fact, a just and of itself projects -- couple on they're though picking In even that didn't up contracted, just now. going project the again

need. being crisper we're six augmentation get help and do ability attract it them the than ago, And ability prevalent much gotten our And at but projects the they less So ways to We're to attract yet. nonexistent staff to months clients was, talent seeing able we've say, to more talent. our going. in seeing of more

yet, that reality bit. of we it's down been a we're But we've today. gone to able still the up facing brought topic that which tamp So is not and why back what it's

Anja Soderstrom

create then short in bit of $X.X report ACV is target the And the million the million, and to fourth Can in on on the Okay. the a added a anymore ACV? lumpy created you to quarter but little of elaborate lumpiness you kind which that that misperception. of that's you just being $X.X won't alluded

Allan Dow

And a as a continue We the transactions as trends. we fourth of level to quarter environment. in picked to were up a that historical more -- Those We the decisions move it fee well the cloud, clients from extending look felt artificial job had clients. you the them seen we so. to are were in that the the compared good doing is who new nothing and move expansion, in as comfortable -- with comments, dominated license for model still did do quarter. had want clients than that of the exactly. clients to beginning they forward your transactions on that by in we up to in the Yes. higher noted licensing with continuing There their to they And anticipated move at administering are have relationship came barriers more a past fourth making into those a again, were applications we what as right existing the the very all But mind to quarter existing even put and of fee license we is with standpoint, fourth standpoint us. don't

So and once license We to how for of the wanted with us on they get quickly to us. manage and next with get really themselves. declare wanted to their their do we phase to perspective down it that journey going transaction continue on-premise them agreed they their that

to next quite was about not a a the stay we're of can direction success it client in cloud their so high. one their applications, other. or will job good administering rate in doing phase more that than But them to very the their place influence moving we we the that's insistent persistent we've of are journey So that trying the ensure if got

we'll think that future. the see don't in I So

we've And is first, maybe I think I we we'll second, go back in as in which think to in what quarter, got forward. where we our $X million and that's thinking license go below fees. the third were

Anja Soderstrom

Is one. last to one out then And anything call Okay. there geographically?

Allan Dow

an But Nothing extraordinary. noteworthy. worth that's maybe Yes. emerging trend

of at North our in picture and supply in leave peers, if is of if marketplace, arena as the is at close you the chain planning pretty XX% math. supply XX%, market the you lot chain around XX% rest that American the look you a outside That's XX%, the all to which look spread Europe supply the doesn't of world, and is well. and arena, of the chain us If revenue whole do Western our planning us, spend then expenditure

on If that market. quarter-to-quarter making -- bit. Asia into is trend. is a at We're investments into you results We're is a some We're to what brought our Asia. We our look go our on some our pick leadership market to recurring We team. channels new there. starting expanding But new expanding out basis, brought long-term some that up talent. interesting the

the and in it's to fairly bodies kicking that The fact, and some the towards today's in doesn't job done. staffing you tend is the of I is light labor, better. bias up, starting on returns job -- hit staff, amount performance. been you to their point the in marketplace diminishing even get where of it traditionally staff is more you expenditure think -- Asia the decline which put they the And can reality make probably reason in is reality of can't it's

room, enough people the lunch. you go make decision about put you where can't to a If in to

is even your supply So with managing complicated. staff more bigger a chain

and they to So and in supply making our investments that starting there. chain -- planning thus investments applications are realize out

Asia bear of So going in I in see to we're will think the higher streams. Pac percentage numbers. the take revenue term, But to it a really term, to [ph], see out B particular, Asia the that -- our while in longer in be longer B a

Anja Soderstrom

Okay, that me. works out for

Allan Dow

the good. questions. Very us, Thank thanks for joining so and for much you

Operator

Zachary Cummins from take will next our question with Riley we B. And Securities.

Zachary Cummins

solid Give even I go a more transformational pipeline can little asked. solutions? that from little really the quarter. on a us the on getting wanted already points inbound deeper been you're But you touch your the of customers for now? know of the color Allan, into just a bit I key have to bit interest deals maybe more lot you're mix congrats pipeline of on a in the a that and right seeing the about number little Allan,

Allan Dow

focused predominance say serious transformational decision-making. they're they're about mix. the coming flavor on about very serious a rapid Yes. -- are It's little is the about automation. They're platform, activity. I of now would serious of right a bit that pipeline People

and being application AI recommendations in can self-learning are they that So out of so quickly transformational flavors critical going systems, and in self-operating those made driven prescriptive the we've act systems, on the move what's projects. all of investments these on

and people, labor pace the that the They the of don't knowledge walking turnover be changing things with force in With factor become the has have at dependent just knowledge a ability sitting of clients. labor our on the walking or for expertise chain space, critical lack to labor in the desk have supply anymore.

value. all They critical they all factor. -- need is look They all where it virtually really at almost to transformational. and they're some But cases, they're address need want challenges. the They want in say, the quickly. success cases, -- they So of

got the these most they out area right we're need which II, now that important want us. for And phases. many of the lined focus that to on IV Phase our on on today. projects projects want III, completely Phase have investment So We've and IV an to many of keep clients. return months, transformational starting address and expertise acute go, they they're into And to and and II, six out parsing are a is thing they with within we're of that ones Phase III the but an to I, ready

to the we're about and out attract it's in world. marketplace putting to happening continuing the that what's the is noise continuing around in successes organically clients the So spread

our these inquiries, the And Just spread addressing supply challenges. made people then continued to general, I we've the think, I in SI the chain number think with of investments word. are community has

through is there becoming their people dialogue attracting they're as prominent more Our to that well. that's having, us out name and

coming. to continue If team again, interest phases can hopefully, capture in we fold that it project your sure are the not, to make point pipeline that and multiple to hopefully, go hit from Zach, So our a deeper. we opportunity I question. and we'll invest to the into on little

Zachary Cummins

improving maybe deal factors, of in of you've quarters? with in team. perfect, of execution improvement the litany execution That of the drive and know closings a seen couple different can you've in the even talk some coming a variety areas Allan. can from macro and highlighted the factors And driving some the where further you that some successes present no. including know sales I I No, was quarters, delays better challenges. you some some But about last

Allan Dow

Yes.

Phase to think a while prescriptive clients. executing get case that to for actually bear clients true the takes investing model value, as up I what great we've where speed they the on got value applications and phased garnering quick works understand on our return, and talking build investments are and team in seeing little in that with getting and we strong, clients and value been they're It and is can proposition how Phase of on to successfully, the about. can the now move to that prospective moved messaging of speaking on running current clients we've we And is And get studies at that behalf results that's well-articulated worked our where continue the we've -- which some the got we move there's happen that clients approach that that can why strong. come very is. models and maturity III, and talking Phase at to messaging value the to IV so about the -- been II and a of team, the

things not to to go that change those all confidence our that's want the of in going there that help disrupt build prospective well sitting have going their to all confidence. transformational investments, -- They're So business. nervous. in area particularly are they way to these to pretty They business. strategic strategic make they're making going in investments, clients a And with operate really their their and we're

all that our success, at our a bit to getting let's our momentum, just go build our trigger on people the And speaking get help and level. quicker to clients on confidence So started behalf, project. pull little the

Zachary Cummins

already in opportunities maybe would dividend, potential towards a capital the great. seemingly see any sort question Alan, the are you really the well. But sheet, building thinking allocation, M&A potentially, And but the pays company I of you on commentary other favorable environment? more about on balance aspects in of know be cash that Vince you, geared either little final And chime a bit or as could balance did Understood. how be could

Allan Dow

hit topic mine. favorite on Well, a you really of Zach,

all, true. through right, level appropriate. think and that We'd of level the We the distribute current realistic. much a good market us first the operations companies none we that of We of more think make operational we the became fair dividend dividend. and So acquisitions And potential in covering to from obviously flow, come wanted we for valuations pullback from could except are -- guess, stock dividend the love our this tuck the there. to do you're that is and cash aspect, that's I that see

I rapid our investment the hard So valuation. fit. that a is couple working that community investment we're on right got look we that the criteria can one, of that return We're can ones to it a our are criteria of for on a and a We've find say We market. fair get behalf shareholders. in at

clients it to So the footprint accelerate is we factor. back with clients, take an opportunity or them an acquisition extend potential that's applications has acquired But current into current the company current to most there important way so reverse an and our where other from take go gains our that can challenges, as our them to we and important well. help revenue the back that sell

of those successful. them use that's right work ones been success five our a hope will all find in allow of the XX very to that see off pull cash. extend couple We've tenure we're can of add done They've We during my years. that We the to rate. it. to And we there. to still to hard the think us we're of ahead that if at best here So years

Zachary Cummins

the quarter. helpful. That's Best you luck Thank Understood. much. very coming in

Operator

turn I that And now it further program no will appears back we to questions our the time. have over at this presenters.

Allan Dow

present ahead. helping you speaking this Ashton, look for today, in with with a you those participation again for Have nice the evening, thank call, we forward and and so the the thank time much you us to quarter for we call evening. your and with all on attention

Operator

for you participation. conclude This your Thank does today's program.

a any at time, wonderful disconnect have day. and may You

Logility Supply Chain Solutions (LGTY) 9 Jun 222022 Q4 Earnings call transcript