Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Have you seen any changes in the gross retention side of the bookings environment due to federal grant funding impacts? A: Michael Gianoni, CEO: Our solutions are not in the fund flow of federal grants, and we haven't seen any impact on sales bookings, pipeline, or customer retention. The biggest test was during COVID, and we lost no customers. Our platforms are more critical now for revenue sources from individual donors.
Q: How did the transactional business perform relative to expectations in Q1, and how does it impact the mid-single-digit organic growth outlook? A: Anthony Boor, CFO: Transactions were the biggest driver of overperformance in Q1, with about 9% growth. We included some incremental transaction revenue related to LA wildfires in our guide. Viral giving events could provide additional upside.
Q: What macroeconomic factors were considered in maintaining guidance for 2025, and is there increased confidence in mid-single-digit-plus growth? A: Michael Gianoni, CEO: Most of our customers don't rely on federal grants, and we haven't seen an impact on bookings or retention. We maintain guidance assuming no material macro changes. We saw some plus in Q1 but are not changing the guide yet.
Q: What is the outlook for net new bookings and the pipeline for 2025? A: Michael Gianoni, CEO: The pivot to focus on new logos is behind us, and new bookings are up substantially in Q1. The pipeline looks good across the vertical markets we serve.
Q: How are international markets performing compared to domestic opportunities? A: Michael Gianoni, CEO: We're doing well in Asia Pacific and Europe. JustGiving is performing well, with strong brand recognition in the UK and Europe. There's also significant interest in our YourCause platform for employee engagement.
Q: What gives you confidence in the resiliency of your end market demand environment? A: Michael Gianoni, CEO: Our end markets are healthy, and our innovation is resonating with customers. We've introduced AI capabilities, better integration, and improved user experience, driving good results in new logos and cross-selling.
Q: How are contract renewals progressing, and is there any seasonality to be aware of? A: Michael Gianoni, CEO: Customer retention remains high, and the transition to three-year contracts is now normal. Renewals are higher at the end of Q2 and early Q3.
Q: Will you consider increasing the share buyback program if the target is met early? A: Anthony Boor, CFO: We are well on our way to the 3% to 5% target for 2025. We will continue to evaluate market conditions, share price, and debt levels to decide on any changes to the buyback program.
Q: How do you plan to monetize AI technologies? A: Michael Gianoni, CEO: We've embedded AI and predictive analytics in our solutions without separate charges. We are exploring monetization models for agentic AI in the future.
Q: How does currency fluctuation impact your financial outlook? A: Anthony Boor, CFO: Currency movements are more favorable now compared to when we set guidance, potentially providing a tailwind if current trends hold.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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