Enghouse Systems Ltd Q3 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Deepak Kaushal - BMO Capital Markets Equity Research - Analyst : It's good to be back on these calls. I just wanted to dig in -- can you guys hear me okay?

Question: Deepak Kaushal - BMO Capital Markets Equity Research - Analyst : Fantastic. I just want to dig in more on the M&A pipeline, Steve. Can you give us kind of a sense qualitatively, if not quantitatively, the mix between smaller versus larger opportunities? And it seems like the first couple, to start, have been tuck-ins. Is that just the nature of how this -- you expect the profile to happen, the smaller ones first and the larger ones later? And maybe some color on that, if you can.

Question: Deepak Kaushal - BMO Capital Markets Equity Research - Analyst : Got it. And from a buyer's perspective, you're obviously buying and you're seeing more. But in a falling -- as rates continue to rise and valuations continue to fall, like are you ready to pull the trigger on these things now? Or do you kind of wait a quarter or 2? How do you kind of think about pacing yourself through this trend and -- when the flood gates open? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2022 / 12:45PM, ENGH.TO - Q3 2022 Enghouse Systems Ltd Earnings Call

Question: Deepak Kaushal - BMO Capital Markets Equity Research - Analyst : Makes sense. Appreciate that. And Vince, maybe just a follow-up with you on the perpetual to SaaS conversions in IMG. When you convert a perpetual license to SaaS, how long does it take to break even on the economics there? And are you seeing a pickup in add-on features when you convert to SaaS?

Question: Deepak Kaushal - BMO Capital Markets Equity Research - Analyst : Yes, got it. When you forego the perpetual renewal, how long does it take up to make that acquisition? You need like 2 years of SaaS or 1.5 years of SaaS?

Question: Deepak Kaushal - BMO Capital Markets Equity Research - Analyst : 3 year. Okay. Okay. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 09, 2022 / 12:45PM, ENGH.TO - Q3 2022 Enghouse Systems Ltd Earnings Call

Question: Deepak Kaushal - BMO Capital Markets Equity Research - Analyst : Okay. And can you give us a sense then what percentage of IMG today is on perpetual versus SaaS? And when we might -- I guess, do you have any targets for an inflection point on when you might pass the halfway point on conversions?

Question: Deepak Kaushal - BMO Capital Markets Equity Research - Analyst : Okay. That's helpful. And since it's been so long that I've been on the call, if I may ask one more question. You guys are in lots of various international markets. Are there any notable areas of relative resilience or relative weakness internationally that might be worth understanding or flagging?

Question: Deepak Kaushal - BMO Capital Markets Equity Research - Analyst : Got it. What about Latin America? You had some new operations in Mexico, Brazil, any notable mentions there?