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: Kevin Krishnaratne - Scotiabank - Analyst
: Hey there. Good morning team. Maybe first for Deborah, a couple of clarifications or thoughts on the cash flows. Cash from ops was a negative $1
million in Q2. How do we think about -- going forward, you talked about working capital variations. You might also book some restructuring in Q3.
So I'm just curious if we can -- how do we think about CFO over Q3 and Q4?
Question: Kevin Krishnaratne - Scotiabank - Analyst
: Okay, appreciate it. Okay. Maybe to Luc, Deborah as well. The eprocurement is doing well. Ever so slightly though, if you go from Q1 to Q2, it was
down just a smidge right to $20.3 million to $20.2 million. I'm just wondering what happened there. But more importantly, going forward, it looks
like you talked about the 30 counties that are signed up $2 million of ARR. If we just take that $2 million, you know, divided by four the quarter, do
you see sort of the Q3 number go up by $0.5 million? How do you think about that as a tailwind? And how do you think about the pipeline of similar
opportunities going forward? And how that might benefit the numbers into Q4 and beyond?
Question: Kevin Krishnaratne - Scotiabank - Analyst
: See, you talked about the $2 million ARR from multiple mid-market counties. How does the Hawaii contract size relative to that $2 million are a
bunch of counties?
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NOVEMBER 08, 2023 / 2:00PM, MDF.TO - Q2 2024 mdf Commerce Inc Earnings Call
Question: Kevin Krishnaratne - Scotiabank - Analyst
: No worries. That is more than helpful. Thanks for that context, Luc. Just a couple of more then. I may have misheard positive contributions for sure
on the EBITDA and marketplaces, did you say that ecommerce is also profitable? Can you just talk about maybe what the EBITDA margin profile?
I know you did 13%-ish in the quarter overall, but any way to think about how each business line is performing from a profitability perspective?
Question: Kevin Krishnaratne - Scotiabank - Analyst
: Okay, got it. And just the last one from me and thanks for that. So the strategy for ecom, how do you see it fitting into the overall strategy for mdf.
It sounds certainly like all the real momentum is in eprocurement, but now you've got ecommerce stabilized from a profitability perspective. Are
you thinking about pushing a bit harder on that side of the business How do you think about opportunities there? I'm just trying to really think
about your view on ecommerce in the context of the broader mdf story. Thanks.
Question: Kevin Krishnaratne - Scotiabank - Analyst
: Got it. Okay. Thanks for all that. Makes sense, and I'll pass the line. Thanks, guys.
Question: Jesse Pytlak - Cormark Securities - Analyst
: Hey, good morning. Kevin already touched on many of the things I wanted to ask about, but maybe we could talk a little bit more about the pipeline.
You did have a lot of wins in the past two quarters. Can you just speak to your ability to refill it here? The $2 million that has come out, have you
been able to backfill that with other engagements?
Question: Jesse Pytlak - Cormark Securities - Analyst
: Sure. Just on your pipeline, you've announced several wins this quarter and last quarter. As those convert into contracts now, have you been able
to refill your pipeline with new potential pipeline as well?
Question: Jesse Pytlak - Cormark Securities - Analyst
: All right. Wonderful. And then just a quick modeling question. How should we think about the lost revenue from the closure of those two marketplaces
that you've spoken to?
Question: Jesse Pytlak - Cormark Securities - Analyst
: Okay. I understand. That's all for me. Thank you.
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