mdf Commerce Inc Q3 2022 Earnings Call Transcript

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

Question: Saul Monrano - Laurentian Bank - Analyst : Good morning, Luc and Deborah. Thank you for my taking my questions. First of all, congrats on the record revenues for the quarter. So, my first question again is regarding Periscope. Luc alluded to the fact that we should expect another two to three more quarters where the fair value adjustment will take place. Could you give us any idea on the total amount that the company is anticipating to be realized for the fair value adjustment?

Question: Saul Monrano - Laurentian Bank - Analyst : Okay, that's very helpful. And moving on, regarding Unified Commerce, really appreciate the color you gave on what's been going on at Aldi. Just wanted to take a deeper dive into, first of all, how many -- could you provide color on how many stores the company has covered? How many Aldi stores in the UK? And what's the status on the NHS contract?

Question: Saul Monrano - Laurentian Bank - Analyst : Okay, but going forward do you see that there will be any easing of these challenges given what we're hearing in the news that the government over there is pretty much set to get rid of all the COVID-related restrictions by the end of February? So, what are your thoughts on that?

Question: Saul Monrano - Laurentian Bank - Analyst : Okay, moving on to the US side of things. So again, the strategic sourcing, or the eprocurement as it's called now, US-based platforms are performing really well. How much do you think it was because of the passing of the infrastructure bill in mid-November? Do you think that the company saw a lot of benefits within the quarter or is there a lot more to come in the coming quarters then? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2022 / 3:00PM, MDF.TO - Q3 2022 mdf Commerce Inc Earnings Call

Question: Saul Monrano - Laurentian Bank - Analyst : Okay, that's great color. And just one last question from me. So again, you were alluding to the fact that the rate increases are still an increasing issue, again, across the industry pretty much. Any updates on whether -- how the Ukrainian cost base is going, if it's working out as planned and any expected margin uplift from there? Thank you.

Question: Amr Ezzat - Echelon Wealth Partners - Analyst : I'd like to go back on your comments on Unified Commerce. With transaction volumes down to maybe let's call it the normalized level, what sort of growth rates should we be expecting going forward within that division? Like for the quarter you guys are at 4% year on year. I understand that it is a tougher comp last year, but the quarter before that I also think you were in high single-digit territory.

Question: Amr Ezzat - Echelon Wealth Partners - Analyst : No, no, that's great. Maybe if I could again on that. So, if I'm thinking about the pace of bookings in commerce going forward, is it fair to assume you are bidding on less projects within e-com versus call it a year ago? Is that a fair statement?

Question: Amr Ezzat - Echelon Wealth Partners - Analyst : Okay, that's good color. Then maybe for Deborah, can you give us a sense of what normalized operating expenses look like going forward? There are a couple of moving parts. You've got restructuring charges during the quarter. Then you guys spoke in your prepared remarks to wage inflation. So, do restructuring charges sort of taper off, but we do expect some wage inflation, so these two cancel out? Or how do you think about the OpEx?

Question: Amr Ezzat - Echelon Wealth Partners - Analyst : Okay. The sense that I'm getting here is obviously it's getting much more expensive to operate and hire. That's fair. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2022 / 3:00PM, MDF.TO - Q3 2022 mdf Commerce Inc Earnings Call

Question: Amr Ezzat - Echelon Wealth Partners - Analyst : Okay, maybe one last one. On the Board resignation, what color can you give us there in that like ClTment Gignac who are the honorable -- ClTment Gignac has non-incentives for a while now. Then is there anything to read in that both ClTment Gignac and Gilles Laporte are stepping down at the same time or is that a coincidence?

Question: Amr Ezzat - Echelon Wealth Partners - Analyst : Great, thanks. I'll pass it along.