Tyler Nguyen's questions to TransAct Technologies Inc (TACT) leadership • Q3 2024
Question
Tyler Nguyen from ROTH Capital Partners asked a series of questions about the Foodservice Technology (FST) segment, including trends in average client size, initial order rates, key end markets for new clients, and the drivers behind expected conversion rate improvements. He also asked about the timeline for normalization in the casino market.
Answer
CEO John Dillon detailed the FST strategy, explaining the sales team targets clients with a potential of 50-100 units and uses a 'land-and-expand' approach, often starting with small trial orders. He identified key end markets as QSRs, convenience stores, sushi providers, restaurants, and food service management companies. Dillon attributed improving conversion rates to a refined, data-driven sales and marketing process. Regarding the casino market, he reiterated that the inventory glut from post-pandemic overbuying is still being worked through, with normalization expected in 2025.