Mayank Tandon

Mayank Tandon inquired about the casino gaming sales slowdown in October and November, its potential link to a government shutdown, and the implications of December's recovery for future sales momentum. He also asked for an update on the Marriott PMS mass rollout timing and its expected impact on short-term margins.

Answer

Ramesh Srinivasan (President and CEO, Agilysys) attributed the casino gaming slowdown to temporary factors, noting a strong December recovery, and declined to speculate on specific causes. Regarding Marriott PMS, he confirmed successful pilot completion and increasing implementation waves, assuring that fiscal year 2027 profitability would surpass fiscal year 2026, with the project contributing positively.

Mayank Tandon of Needham & Company asked about the observed weakness in casino gaming sales during October and November, inquiring if it was linked to a government shutdown and its potential impact on December's momentum. He also asked for an update on the Marriott PMS mass rollout timing and any short-term margin impacts.

Answer

President and CEO Ramesh Srinivasan stated that the company would not speculate on specific reasons for the temporary slowdown in casino gaming, noting a strong recovery in December and a return to normal sales levels. Regarding Marriott PMS, he confirmed the pilot phase was successful, implementation waves will steadily increase, and while not providing FY2027 guidance, he assured that profitability levels are expected to be higher than FY2026.

Mayank Tandon asked about the primary drivers behind Agilysys's record sales momentum, specifically whether it's due to increased market adoption of cloud solutions or Agilysys's enhanced brand recognition and product innovation. He also inquired about the long-term margin impact of the Marriott rollout, asking if it would be margin accretive or require significant upfront investments.

Answer

Ramesh Srinivasan, President and CEO, attributed the sales momentum primarily to the improved cloud-native product ecosystem, growing competitive advantages, and strategic additions to sales and senior staff. Dave Wood, CFO, and Ramesh Srinivasan confirmed that the Marriott rollout is expected to be margin accretive over time, with most necessary staff already in place and subscription revenue contributing to higher margins.

Mayank Tandon asked about the primary drivers behind Agilysys's record sales momentum, specifically whether it's due to increased market adoption of cloud solutions or enhanced brand recognition and product innovation from Agilysys.

Answer

Ramesh Srinivasan, President and CEO of Agilysys, attributed the momentum primarily to the improving product ecosystem, which is cloud-native and offers increasing competitive advantages. He also noted the significant addition of sales and senior staff, including Joe Yousef, who are opening major doors. Dave Wood, CFO, and Ramesh Srinivasan also discussed the long-term margin impact of the Marriott rollout, expecting it to be margin accretive and contribute to increased growth and margins.

Mayank Tandon of Needham & Company asked about the visibility into the full-year subscription revenue guidance and whether it is fully covered by existing contracts. He also inquired about potential upside drivers for subscription growth and the company's M&A strategy, including potential focus areas.

Answer

CEO Ramesh Srinivasan expressed high confidence in the subscription revenue outlook, citing excellent visibility from the current backlog and a significant inflection in both sales and implementation velocity over the past two quarters. He stated that achieving the annual targets depends on both the starting backlog and continued sales momentum. Regarding M&A, Srinivasan reiterated a patient and opportunistic approach, emphasizing strong organic growth potential. He noted that any potential deals would likely focus on either acquiring complementary products to fill ecosystem gaps or gaining market share.

Mayank Tandon asked for clarification on the updated FY25 guidance, seeking a breakdown of the organic versus Book4Time contribution to the new 38% subscription growth target. He also inquired about the embedded growth assumptions for the POS and PMS segments in the second half and questioned why margins were not expected to scale more significantly given the company's operating leverage.

Answer

CFO Dave Wood clarified that of the 38% subscription growth guidance, a little over 25% is organic, with the remainder from the Book4Time acquisition. He noted that PMS growth is expected to outpace the overall subscription rate, while POS is anticipated to recover. Regarding margins, Wood explained that while operating leverage is improving, an expected rebound in lower-margin product revenue in the second half will likely temper the overall gross margin, keeping it slightly below the current 63.3% level.

Mayank Tandon inquired if EverQuote's billion-dollar revenue target is organic or includes M&A, and about its underlying drivers. He also asked whether margin expansion would primarily come from VMM improvement or operating leverage.

Answer

Jayme Mendal (CEO, EverQuote) confirmed the billion-dollar revenue target is organic, driven by AI products, new traffic channels, and non-auto vertical growth. Joseph Sanborn (CFO, EverQuote) added that M&A could supplement but isn't necessary. For margins, Joseph Sanborn stated that 100-150 basis points of annual adjusted EBITDA margin expansion would come from operating leverage and disciplined technology investments, with VMM expected to remain in the high 20s.

Mayank Tandon of Needham & Company asked for guidance on Q4 seasonality for key metrics and sought more detail on the company's roadmap to $1 billion in revenue, particularly regarding organic growth versus M&A.

Answer

CFO Joseph Sanborn indicated Q4 revenue typically sees a low single-digit sequential decline, with VMM in the high 20s and EBITDA margins near current levels. CEO Jayme Mendal stated the $1 billion goal is achievable organically through AI-driven product performance and channel expansion, with M&A being a potential accelerant, not a requirement.

Mayank Tandon asked about the budget penetration with top customers and the headroom for growth with existing clients versus acquiring new ones. He also inquired about the company's priorities for capital allocation.

Answer

Executive Jayme Mendal detailed that growth is not budget-constrained but is unlocked by different levers: expanding the agent base for captive carriers, and driving more efficiency for large digital carriers who have performance-based spending. Executive Joseph Sanborn outlined three capital allocation priorities: 1) organic, long-term investments in technology and AI; 2) disciplined, P&C-focused M&A that is cash-flow accretive; and 3) considering share buybacks while being mindful of the impact on the public float.

Mayank Tandon requested a breakdown of growth drivers between traffic and monetization and asked about the company's capital allocation strategy, particularly regarding M&A, given its strong balance sheet.

Answer

CEO Jayme Mendal described growth as a balanced story between consumer volume and monetization, with a slight edge to monetization. CFO Joseph Sanborn detailed a capital allocation strategy focused on organic tech investment, disciplined P&C-focused M&A, and potential share buybacks to build long-term value.

Mayank Tandon inquired about the business exposure to the new FCC one-to-one consent rule and its potential financial impact. He also asked about the longevity of the growth tailwind from carriers re-entering states.

Answer

CEO Jayme Mendal explained the FCC rule affects about 25-30% of the business (agency/offline leads) and will lead to lower volume but higher-quality, higher-priced leads. CFO Joseph Sanborn added that while Q1 2025 growth will be more muted than the typical seasonal step-up, the company expects to normalize by mid-year. Sanborn also noted that while the carrier recovery is in its "mid to late innings," there is still room for growth as more carriers and large states like California come back online.

Mayank Tandon asked for clarity on the subscription growth ramp for the second half of the year, given the timing of the Burger King rollout, and inquired about the potential ARPU uplift from recent multi-product deal wins.

Answer

CFO Bryan Menar confirmed that while year-over-year growth metrics are affected by the slower first half, incremental quarter-over-quarter growth is expected to accelerate in Q3 and Q4. CEO Savneet Singh added that hardware revenue, which spiked in Q2, should normalize. Singh explained that multi-product deals can increase ARPU by 60% to 100%, citing an example where a typical $2,500 per store POS deal expanded to nearly $8,000 per store with the full product suite.

Mayank Tandon of Needham & Company, LLC inquired about the cadence of revenue growth for the remainder of the year, the potential to exceed the 20% organic ARR growth target given recent wins like Burger King, and requested more details on the five new logos won in the quarter.

Answer

CEO Savneet Singh reaffirmed the target of 20%+ organic growth for the year, anticipating a significant ramp-up in Q3 and Q4 driven by major rollouts. He noted that while Q1 and Q2 growth would be similar, the second half will see a strong pickup in both revenue and EBITDA. Singh confirmed that of seven Tier 1 deals in the pipeline a year ago, four have now been won. He clarified that new deals are increasingly multiproduct but could not disclose specific customer ARR metrics due to confidentiality.

Mayank Tandon inquired about the expanded Burger King partnership, asking if the upsell would alter the original rollout timeline and the previously estimated low-$20 million ARR opportunity. He also asked for guidance on the quarterly cadence for revenue and margins in 2025.

Answer

CEO and President Savneet Singh confirmed the timeline would be pushed out by approximately one quarter, with a temporary slowdown in Q1 2025 for coordination, followed by an acceleration from Q2. He stated the upsell 'significantly adds to the ARR' and projected that both revenue growth and margin expansion would meaningfully accelerate in the second half of 2025.

Mayank Tandon inquired about the status of large deal activity mentioned at the start of 2024 and its potential to accelerate organic ARR growth. He also asked for an update on the integration of the Stuzo (PAR Retail) and TASK acquisitions, including any surprises and cross-sell progress.

Answer

CEO Savneet Singh stated there is a good chance of closing more large deals this year, but the growth plan is not dependent on them. Regarding M&A, Singh described the PAR Retail (Stuzo) integration as a "fantastic experience," noting the C-store food service thesis is proving correct. He added that while it's early for the TASK Group, its platform is "special" and provides a critical international arm for future growth.

Mayank Tandon of Needham & Company asked for metrics on customer churn and onboarding amid tariff uncertainty, and inquired about the strategic motivation for opening a new technology hub in Gurgaon, India.

Answer

CEO John Caplan stated that revenue retention has improved modestly and that ICP retention is significantly higher, with no signs of customer reticence to onboard. CFO Bea Ordonez explained the India hub is a strategic investment to ensure resilience and tap into a large tech talent pool, which will be managed within the company's existing financial targets.

Mayank Tandon inquired about the strategy behind sales and marketing investments for targeting larger ICPs and asked about the potential levers for outperformance in 2025.

Answer

CEO John Caplan explained that the go-to-market strategy prioritizes specific countries and verticals, with sales incentives focused on high-value ICPs, while overall headcount remains stable. CFO Bea Ordonez identified a stable macro environment, continued B2B momentum, and sustained market share gains in e-commerce as key potential drivers for outperformance in 2025.

Mayank Tandon of Needham & Company asked about the robustness of the sales pipeline, the pace of deal conversions, and the company's confidence level in its full-year revenue guidance. He also inquired about key underlying business drivers, including the pricing climate, leverage on utilization, and future hiring plans.

Answer

CFO Anil Doradla explained that the low end of the guidance is supported by existing work and acquisitions. CEO Leonard Livschitz added that while the pipeline is very strong, particularly for data and AI projects, the company remains cautious due to macro uncertainties. He noted that pricing for innovative projects is favorable, but there is pressure in traditional business, leading to a strategic focus on scaling in India and adopting value-based models like GAIN. Headcount will continue to grow, aligned with demand in strategic areas.

Mayank Tandon asked for an update on new logo acquisition and vertical traction, as well as the expected cadence for gross and EBITDA margins for Q2 and the full year.

Answer

CEO Leonard Livschitz explained their '80-15-5' new business strategy, highlighting that Q1 saw a strong ramp-up from logos acquired in 2024. CFO Anil Doradla noted the Q1 margin benefited from fixed-price contract timing and the guided Q2 downtick reflects investments in AI and talent. For the full year, Doradla expects margin expansion, while Livschitz added that scaling key locations and growing client accounts to the $5M-$20M range will improve operational efficiency.

Mayank Tandon inquired about the primary drivers behind the 21.2% midpoint growth forecast for 2025, specifically asking about the impact of recruiting, pricing, and utilization. He also sought clarification on the M&A contribution embedded in the guidance and the source of visibility for the full-year forecast.

Answer

COO Yury Gryzlov explained that growth is supported by their established global recruiting and training 'machine' across 19 countries. CFO Anil Doradla clarified that organic growth was 12.8% YoY in Q4 and is expected in the low teens for 2025. CEO Leonard Livschitz added that visibility is high due to winning more large RFPs and securing larger, longer-tenure programs, giving them confidence in the full-year guidance.

Mayank Tandon asked for clarification on the Q4 M&A revenue contribution, the sustainability of organic growth trends, and the current pricing environment.

Answer

CFO Anil Doradla confirmed a 10% M&A revenue contribution for Q4 and stated that organic growth is driven by fundamental factors like billable headcount, not artificial budget flushes. CEO Leonard Livschitz added that while October was strong, guidance remains conservative due to December holidays. He also noted that pricing is improving on new technology-led engagements and is stable for legacy business, a trend COO Yury Gryzlov confirmed for Europe.

Mayank Tandon from Needham & Company asked if potential banking deregulation was creating a tailwind for tech spending and inquired about the forward-looking balance between user growth and ARPU growth as primary revenue drivers.

Answer

CEO Alex Shootman asserted that digital banking and account opening are non-discretionary systems, with spending remaining consistent regardless of the regulatory environment. CFO Bryan Hill stated that growth levers should remain consistent, with user growth around 12% and organic ARPU expansion at 6-7%. He noted that successful cross-selling of Mantle could further accelerate ARPU growth over time.

Mayank Tandon of Needham & Company asked about customer feedback on potential banking deregulation and what factors might cause banks to slow their digital transformation spending.

Answer

CEO Alex Shootman noted that clients view potential 'open banking' deregulation as an offensive opportunity to gain market share with the right technology. He stated that while clients are managing expenses, digital banking projects are considered mandatory and non-discretionary. He characterized Alkami's outlook as 'rational optimists,' acknowledging macro risks but having seen no impact on demand to date.

Mayank Tandon asked about the expected cadence of revenue growth and operating margins throughout fiscal 2026, including the split between organic and M&A contributions. He also requested more details on the two recently signed large deals, including their potential revenue impact, the services being provided, and the health of the large-deal pipeline.

Answer

Executive David Mackey projected a seasonally soft Q1 with flat to slightly up revenue due to productivity give-backs, and an operating margin of 17-17.5% due to wage hikes and deal ramp costs, with sequential improvement expected thereafter. He detailed the large deals: one in risk operations for a payments platform and another in operations for corporate travel management, both with annual contract values over $10 million. CEO Keshav Murugesh confirmed the large-deal pipeline remains healthy with several late-stage conversations.

Mayank Tandon asked for a timeline on when major headwinds would abate to provide a cleaner view of growth and inquired about margin expectations for the second half of the year and the long-term path back to the low-20s percentage range.

Answer

Executive David Mackey stated that on a sequential basis, the major headwinds from client losses will have largely abated by Q3. He projected that adjusted operating margins would expand in Q3 and Q4, returning to the low-20s range by the fourth quarter. He noted that full-year margins are impacted by an 'expense coverage issue,' as WNS will not scale back strategic investments despite the temporary revenue dip. CEO Keshav Murugesh emphasized the company's focus is now on driving growth.

Mayank Tandon asked about NCR Voyix's platform conversion strategy, inquiring about the timeline to increase the current 20% adoption rate and the resulting impact on the P&L. He also requested directional guidance for fiscal 2025.

Answer

CEO David Wilkinson confirmed the platform strategy is performing well, driving higher ARR and customer satisfaction, and noted an aggressive plan to accelerate conversions. CFO Brian Webb-Walsh added that platform subscriptions carry the highest margin. Regarding 2025, Webb-Walsh stated formal guidance will come in February but affirmed the company expects to grow from its pro forma 2024 base.