Q3 2024 Enghouse Systems Ltd Earnings Call Transcript
Key Points
- Revenue increased by 17.6% to $130.5 million in Q3 2024 compared to Q3 2023.
- Recurring revenue grew by 22.8% to $88.8 million, representing 68.1% of total revenue.
- Net income rose to $20.6 million from $17.6 million in Q3 2023.
- Adjusted EBITDA increased by 12.9% to $37.7 million, achieving a 28.9% margin.
- Cash, cash equivalents, and short-term investments reached near record highs at $258.7 million.
- Decline in software licenses revenue due to decreased demand for on-prem software.
- SaaS revenue, while growing, is less profitable compared to traditional revenue streams.
- Integration of SeaChange acquisition not yet at standard profitability levels.
- Increased R&D expenses due to acquisitions, SaaS, and AI initiatives.
- Competitors facing financial difficulties, indicating a challenging industry environment.
Good morning, ladies and gentlemen, and welcome to the Enghouse's Q3 2024 conference call.
(Operator Instructions)
This call is being recorded on Friday, September 6, 2024.
I'd now like to turn the conference over to Stephen Sadler, Chairman and CEO.
Good morning, everybody. I'm here today with Vince Mifsud, Global President; Rob Medved, VP, Finance; and Todd May, VP, Legal Counsel.
Before we begin, I'll have Todd read our forward disclaimer.
Certain statements made may be forward-looking by their nature. Such forward-looking statements are subject to various risks and uncertainties, including those mentioned in this continuous disclosure filings such as its area, which could cause the company's actual results and experience to differ materially from anticipated results or other expectations. Undue reliance should not be placed
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