Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Nice to see the improvement in healthcare. It accelerated to 14%. How should we think about that for the rest of the year? A: Most of the one-time software license sales were in the healthcare segment. We still expect low single-digit growth for healthcare this year.
Q: Can you talk about the longer-term opportunity with larger utilities and the competitive landscape? A: The landscape is positive, driven by the need to upgrade legacy software. We are actively involved, especially with our portal component, and see increasing demand. We are not constrained and expect a steady ramp-up in this area.
Q: Are you seeing any differences between larger and smaller M&A opportunities within your pipeline? A: Historically, our sweet spot has been between $2 million and $5 million in EBITDA. We do look at deals larger than $5 million but tend to pass on those below $1 million. The competitive environment hasn't changed, and we're seeing a consistent number of deals.
Q: Could you expand on opportunities to further integrate payments products? A: We integrate payments where the use case demands it, particularly in government agencies. This provides certainty of execution and superior reconciliation processes. We are also assessing existing products to integrate payments where applicable.
Q: Can you provide more detail on the drivers of high single-digit organic growth this year? A: Our net dollar retention was 100%, excluding payments. We expect inflation to contribute slightly in the future, with the remainder coming from new logos. Large customers can swing this number, as seen in recent years.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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