The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Nick Agostino - Laurentian Bank Securities, Inc. - Analyst
: Yes, good morning. Okay, so a few questions on my part. First, Bill, with regards to that three-year contract that you renegotiated, are there any
other contracts or any other relationships that maybe are at a similar jeopardy because you said that there was no -- these contracts were at risk
late this year? Or are there any other contracts that are in a similar situation either for fiscal 2022 or even fiscal 2023, where you might need to offer
similar pricing discounts?
Question: Nick Agostino - Laurentian Bank Securities, Inc. - Analyst
: Okay. Appreciate that color. And then looking at -- because you spoke about rule of 40, obviously this quarter, when you look at your EBITDA margin
and your overall revenue growth, I think you're north of 60%. But at the same time, when I look at your EBITDA margin, it has been coming down
from the 50% level. Like this quarter, you're down to 30%. Just maybe give us an idea as to how -- when you guys are looking at the business and
how you're modeling the business, where do you guys see the floor when it comes to the EBITDA margin side of the whole equation?
Question: Nick Agostino - Laurentian Bank Securities, Inc. - Analyst
: Okay. But just to confirm, you did say that those impacts you saw through the first quarter -- that those are, I guess, pretty much behind you right
now?
Question: Nick Agostino - Laurentian Bank Securities, Inc. - Analyst
: Okay, and then my follow-up question with regards to professional services -- certainly, very strong number in the quarter, $2.9 million. You've
obviously -- you've got that those contracts you guys called out back in November of last year. And then you've got the professional services
component tied to these new three-year contracts. Maybe any color you guys can provide as far as the run rate that we should be thinking about
when it comes to professional services as we move through fiscal 2022? Should we be thinking of a $3 million plus run rate over the next few
quarters?
Question: Nick Agostino - Laurentian Bank Securities, Inc. - Analyst
: Okay. And then my last question, obviously, just within the US market, the infrastructure bill or bills have made their way through the house. Have
you guys started to see any of those funds flow down to some of your customers and therefore start to see the benefits of that? Or is that something
we should anticipate through the rest of this year? And I'll leave it there.
Question: Nick Agostino - Laurentian Bank Securities, Inc. - Analyst
: Okay. Great. Thank you.
Question: Gavin Fairweather - Cormark Securities, Inc. - Analyst
: Hey, good morning. I thought we'd start out on organic growth. You outlined some of the headwinds that the business on in Q1 that led to the
negative in the quarter, but obviously, you remain confident in your high single-digit target for fiscal 2022 overall. So I was hoping you could just
provide a bit more color on what you're seeing in the pipeline in terms of new revenue from the base and new logos as well, just to help us bridge
that gap between Q1 and your fiscal 2022 expectations.
Question: Gavin Fairweather - Cormark Securities, Inc. - Analyst
: That's great. And then just within the Bellamy and SunPac customer communities, can you give us a sense of what level of interest there is in those
communities in upgrading or migrating to cloud? And then maybe you could just provide us with some color on kind of the revenue list for you
on the recurring and from a services perspective as you execute on those migrations?
Question: Gavin Fairweather - Cormark Securities, Inc. - Analyst
: That's great. And then maybe from a product R&D perspective, I know one of your priorities is getting to market with navigator for municipalities.
Can you just provide us an update on that initiative? When you expect to be in market and how you're thinking about the ability to win new logos
with that product?
Question: Gavin Fairweather - Cormark Securities, Inc. - Analyst
: That's great. And then just lastly for me, obviously, the credit facility moving up to $125 million from $75 million, previously. And obviously the
thought process I would imagine is tied to M&A. So perhaps you can just give us an update on the deal flow that you're seeing in the deal environment
that you're encountering out there?
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MAY 12, 2022 / 5:00PM, SYZ.TO - Q2 2022 Sylogist Ltd Earnings Call
Question: Gavin Fairweather - Cormark Securities, Inc. - Analyst
: Great. That's it for me. Thanks so much.
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