Enghouse Systems Ltd Q4 2024 Earnings Call Transcript

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

Question: Daniel Chan - TD Cowen - Analyst : Hi, good morning, Steve. I understand that the licenses revenue decline may be a result of the cloud transition, but shouldn't we see a resulting growth in the SaaS revenues with the transition as well. If we look at total SaaS revenue, that was somewhat flat year-over-year and sequentially

Question: Daniel Chan - TD Cowen - Analyst : Yeah, appreciate that. And that's very helpful color. Steve, so if I just look at the customer call center transition from on-prem to cloud, if I was just looking at that SaaS that is growing, right? The customer -- the call center.

Question: Daniel Chan - TD Cowen - Analyst : Okay. That's awful. Thanks Steve. And then maybe a question on AI in the past, you've stated that fears of adoption of AI in the contact center are overblown. Many of your competitors are touting high tax rates of Gen-AI. And in our conversations with executives imply broader adoption of Gen-AI for customer support next year. So does this quick adoption of Gen-AI change your view on that technologies market appeal?

Question: Daniel Chan - TD Cowen - Analyst : Great, thanks, Steve.

Question: Erin Kyle - CIBC Capital Markets - Analyst : Hi, good morning. It's Erin Kyle on for Stephanie Price. I just had a question on profitability and the margin profile. So to focus on profitability in

Question: Erin Kyle - CIBC Capital Markets - Analyst : Okay. Thank you. That's helpful there. I actually also wanted to ask one question, just a clarifying question the business, the organization that you commented on earlier. You're reorganizing into the two business units, and you've moved up some staff internally. I just want to clarify, are you still conducting an external search to replace the President role or have you reorganized in a sense that role is no longer necessary.

Question: Erin Kyle - CIBC Capital Markets - Analyst : Okay. Thank you very.

Question: Paul Treiber - RBC Capital Markets - Analyst : So, thanks very much and good morning. Just a question on the underlying business. I mean, you mentioned a number of moving parts. Can you speak to renewal rates and customer churn and how that's been trending and what I mean by in renewal rates if you couldn't include, when you see an upgrade from or switch from on-premise to SaaS, where churn is just completely migration away from Enghouse. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 13, 2024 / 1:45PM, ENGH.TO - Q4 2024 Enghouse Systems Ltd Earnings Call

Question: Paul Treiber - RBC Capital Markets - Analyst : And you mentioned you are seeing growth in your in your SaaS business. Can you, -- are there any metrics or is there any way that you can quantify the magnitude of growth that would help, investors understand that business better?

Question: Paul Treiber - RBC Capital Markets - Analyst : And switching gears to Capital allocation. When you look at the Capital deployed on acquisitions over the last couple of years and it's probably being below, what most investors would have expected. Is that primarily a gap between pricing expectations in the market versus what you're willing to pay. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 13, 2024 / 1:45PM, ENGH.TO - Q4 2024 Enghouse Systems Ltd Earnings Call And then, the cash is built up, at what point do you start returning that cash to shareholders perhaps more aggressively than what you've done with share buybacks?

Question: Paul Treiber - RBC Capital Markets - Analyst : And in terms of potential acquisition candidates, you mentioned there's some larger companies out there. Are you looking at larger ones or would the profile be similar to the ones that you've done pretty much in the past?

Question: Paul Treiber - RBC Capital Markets - Analyst : Okay. Thanks for taking the questions.