Sylogist Ltd Q4 2024 Earnings Call Transcript

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

Question: Amr Ezzat - Ventum Financial Corp. - Analyst : Good morning. Thanks for taking my questions. My first one is on the shifting political landscape and I guess all the federal budget cuts. Bill, I was wondering if you could give us some color on how you see that impacting your key verticals particularly education and municipal customers who might rely on federal funding. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 13, 2025 / 12:30PM, SYZ.TO - Q4 2024 Sylogist Ltd Earnings Call

Question: Amr Ezzat - Ventum Financial Corp. - Analyst : Understood. In your MD&A, you reiterated your SaaS ARR growth guidance for 2025 of like 20% to 25%, very appropriate given that it's 2025 Does that guidance take into account, I guess, the turbulence you're sort of seeing specifically in the NGO space? And maybe you could walk us through the different factors that would effectively take you to the high end of that range or the low end of that range?

Question: Amr Ezzat - Ventum Financial Corp. - Analyst : Okay. So on the very strong bookings prints for the quarter, can you walk us through I know you don't give always all the segmentation, but can you give us like the mix by vertical? Like I'm interested in whether you saw a lot of traction in gov. Then like is there a handful of like small contracts, is there one big large contract in there Or is it very broad based? How do we think about that?

Question: Amr Ezzat - Ventum Financial Corp. - Analyst : If you'll allow me one more, in that bookings number, do we have anything new in the for victim services suites or not yet? We do. Okay, fantastic. Thanks. I'll pass the line.You'll allow me one more, in that booking number, do we have anything new for victim services suite or not yet?

Question: Amr Ezzat - Ventum Financial Corp. - Analyst : Okay. Fantastic. Thanks. I'll pass the line.

Question: Gavin Fairweather - Cormark Securities Inc. - Analyst : Hey, good morning. Thanks for taking my question. Maybe to start, just in terms of the partner strategy, maybe we can get a bit more details in terms of what you're seeing in the curious for your assessment of how your partners are maturing in terms of their ability to sell, ability to implement, and if you could hiring patterns or resourcing patterns that you're seeing in that base, that would be helpful.

Question: Gavin Fairweather - Cormark Securities Inc. - Analyst : That's great to hear. Appreciate that. And maybe just kind of building off that in terms of the professional services side, maybe if you can touch on the outlook, I'm sure you want to take another bill or see how's the backlog entering 2025 and as you're kind of starting to hand off more of the PS work to partners in 2017, how should we be thinking about the evolution of that top line?

Question: Gavin Fairweather - Cormark Securities Inc. - Analyst : Yes, that's great. I appreciate the comments. And then just lastly for me, you've kind of done the big lift on the R&D side in terms of launching your new product. So how would you describe kind of the R&D priorities going forward across your product suite in terms of areas that could drive additional revenue for you or drive it as you win rate?

Question: Gavin Fairweather - Cormark Securities Inc. - Analyst : Appreciate it. Thank you. I'll pass on.

Question: Daniel Rosenberg - Paradigm Capital - Analyst : Good morning, Bill and Sujeet. My first question was around your comments about the delivery team. You mentioned some incremental costs in supporting your partners, partner channel strategy and getting up to speed. So I was just wondering how we should think about a baseline margin profile. Are there additional costs to come on as that delivery team is built up or has it all been completed to date? And then just as a follow-up, how have you seen or what do you expect that to support? Is it win rates or speed to delivery? What kind of things are you looking at to support your partner channel strategy?

Question: Daniel Rosenberg - Paradigm Capital - Analyst : Thanks for that. And I guess continuing on the theme of the partner channels, I was wondering if you could explain if there are any differences between head gov and mission and pursuing partners, like is it a different group of partners for each one? What are the synergies or just differences in the go to market between the business lines?

Question: Daniel Rosenberg - Paradigm Capital - Analyst : Okay. Good to hear. And so in the quarter, a lot of the KPIs are pointing to success of the channel partners, Adri, but I was curious about the NPS score. Just what are the drivers that you are seeing customers appreciate driving that NPS score? If you could just elaborate on some of the factors that you think are changing that are supporting continued improvement there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 13, 2025 / 12:30PM, SYZ.TO - Q4 2024 Sylogist Ltd Earnings Call

Question: Daniel Rosenberg - Paradigm Capital - Analyst : Thanks for taking my questions.

Question: Suthan Sukumar - Stifel Canada Inc. - Analyst : Good morning, gents, and congrats on this sustained SaaS momentum. It's great to see. For my first question, I wanted to touch on NRR. I saw the sequential improvement. I'm just curious, is that more of a function of kind of routine upgrades, usage expansion or is that more related to add on of new solutions and capabilities?

Question: Suthan Sukumar - Stifel Canada Inc. - Analyst : Great. That's helpful. What do you what are you anticipating? What might be a more active renewal cycle considering the initial, call it, SaaS customers that you brought on for non profit when you first re platformed? And what are you thinking about sort of the expansion upsell opportunity there versus just overall retention of that initial cohort? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 13, 2025 / 12:30PM, SYZ.TO - Q4 2024 Sylogist Ltd Earnings Call

Question: Suthan Sukumar - Stifel Canada Inc. - Analyst : I think it's I'd say it will be both, but I just really focus on that initial cohort of SaaS customers that came on to that came on mission when you first kind of rolled out that new offering?

Question: Suthan Sukumar - Stifel Canada Inc. - Analyst : That's great to hear. For next question, guys, I want to touch on what are penetration rates like today for both the ERP and CRM aspects of your end to end solution? I'm just kind of curious how that looks within the existing base of customers and how that might also look for some of the net new deals that you guys are signing?

Question: Suthan Sukumar - Stifel Canada Inc. - Analyst : Okay. Awesome. Thank you for taking my questions. I'll pass the line.