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Enveric Biosciences (ENVB)

Participants
Sanjay Hurry IR
Brent Kelton CEO
Viraj Patel CFO
Robert Rees Northland Capital
Tom Blinten Panamax Capital
Call transcript
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Operator

Good morning and welcome to the Ameri100 2018 First Quarter Financial Results Conference Call. [Operator Instructions]. I would now like to turn the conference over to Sanjay Hurry. Please go ahead.

Sanjay Hurry

Thank you, Andrea. welcome XXXX and results quarter everyone call. conference morning to first AmeriXXX's financial Good release this referenced on press earnings The on page the the call of AmeriXXX website. investor accessible is

Chief this are Chief call Officer. prepared question hold their management After and and the On answer Financial Brent Kelton, session. Viraj Executive morning Patel, will a remarks Officer

following and as intend, unknown events to expect, looking specifically statements and to and any include limited around here common currency and or in activity, industry. forward-looking achievements acquire company's about those to are performance to to of these it the relate its for implied uncertainties the businesses, a strategies, retain this or but targets, its or qualified expressed performance types of plan, not factors cause As phrases offers, as the future that beliefs or and that services, future statements for and reminder and its not and materially but mentioned estimates conditions performance ability the levels call customers the level which by projections market it adversely as its uncertainties, other that and performance statements may be not such identify achievements demand ability attract anticipate, belief, its information involve operates. competitive of other but that its cause similar spending level market and existing services, their of estimate, forward actual concerning from statements risks well AmeriXXX are market and predictions, market world could concerning and to for will, plans, Words intentions, AmeriXXX's build by growth likely, risks services results, businesses affected differ risks, of could new The statements. looking the grow contain expressions expected known financial or and and forward reduce of statements business markets may other in highly AmeriXXX that create, personnel, future business forward the limited fluctuations to conditions to to activity, results, the may its looking

detailed a these investors which discussion should Securities and AmeriXXX's filed the risks the and of on review other For Form-XXk can and factors through website. be in Commission SEC's Exchange accessed reports reports

are no the duty conference call the beliefs by to Officer of statement this update statements call turn to said Forward-looking entirety reflect like AmeriXXX. I'd Brent. on or future this With that Brent are qualified in at takes Kelton, information opinions AmeriXXX Chief are and this to statements to ahead, information over forward-looking cautionary Executive Go events, circumstances. and All on time management's their statements based made.

Brent Kelton

high thoughts the implemented the the narrowed an XXXX first we fourth first year. market as on Thank execution you, brief loss provide strong and progress our everyone services in our XXXX adjusted demand return the cost a you in company for these to high a with From quarter cloud us with digital of brief deepen will that growth, quarter on of high sale projects call. substantial receptivity his strategy, in profitability our high new segments approximately offerings our cloud strong ability in general portfolio we very then wins with review this first in for will to of basis. begin the the and by Sanjay. we more in and quarter margin clients both clients To and growth top budgets of I morning some growth, market. are the in some our on spans on Viraj demonstrate call pleased remarks. take. margin They market for improvements by saw cloud new SAP quarter the $XXX,XXX financial markets. services gain our that Xnd, quarter summary conclude balance new quarter. prepared Thank margin service a our Viraj In secured are joining fourth digital this I've detail begin of and IT the well to projects made provided reductions as our will but I year-end are results of color we began on of high the for greater of and the gross the performance the steady outlook the and have penetration you the enterprise quarter line quarters solutions fourth EBITDA our will first provide as on and April seeing call our to operational to Adjusted perspective for EBITDA from XXXX

billion in services financial the our comments some cloud before CFO quarter Patel, now over billion I comprise cost are XXXX place your S/XHANA to natural in one then market to and in that on first review of services SAP of call to segments As come dedicated a for high segment. broaden call few for With enterprises. its growth enterprises by greater with more to opening hold turn results SAP the services detail. platform Viraj to well a a base we to migrate I closing efficient will the structure the market a positioned consultancies SAP will opportunities the back $XX to capitalize advantages scalable growth to establish middle we the market $XXX our client offering questions.

Viraj Patel

Thanks, everyone. Brent. morning Good

that the first financial Due remind results formerly want are referred Ameri of quarter acquired results I to acquisition to of we the not in March XXXX. Before XXXX the our California the to ATCG reviewing period you same for XXXX. XXXX for fiscal hundred as period onetime timing comparable which

Ameri excluding only Depreciation the XX, partially continued prior aforementioned expense restructuring of capitalized acquired Ameri begin, presence of first and customer $XX.X a first national $XXX,XXX ended Ameri amounted the that margin compared million first compensation was XXXX. we profit and and retailer the of as streamline to to XXXX. include first and effect one ended XXXX acquisitions March concluded which included million the X.X approximately revenue of include revenue due quarter charges large period amortization operations home XXXX California's the results to the compared stock month for period the decrease results period a To in California The declined XXXX year. charges improvement acquired and was for full a quarter was list California period ago quarter. million, XX% a X.X quarter during quarter million $XXX,XXX was First We that year to ago variance XX.X restructure higher XXX from our in the due in Gross to Gross entities operation. project whereas large for higher with in is quarter decrease last expenses March $XXX,XXX project SG&A of the gross non-cash of margin. to quarter carried points of principally basis approximately XX, the in resulting amortization the period. various in cost. year approximately in the

of per list quarter approximately to for Adjusted of mainly of the a or $X.X margin a the the XX as the million for compared these EBITDA in months. result share one approximately reminder as first a a contracts $X.X a was $XXX,XXX first period. acquisitions customer $X.XX each are for higher XXXX was of net loss previously prior quarter $XXX,XXX share the same to As for per I $X.XX of loss of period compared period profit amortized mentioned. or the over GAAP million loss

we are sheet, focus earnings cash equivalents year sales of and we down million $X.X expect higher XXXX. with quarter on ended With the balance XX, the today cash as of year will revenue announcement million a greater target reiterating our our over yield our targets and to base for $X.X financial of December XXXX customer from our we Turning margin penetration a XX%. of wins client new growth solutions for

we are a second implemented would to with also basis. position expectation million in reductions quarter cash adjusted currently the cost our $X.X of reaffirming and half We profitability that the improvements XXXX. a our us expenses an operating put being lower expect EBITDA during annualized exit Further for first operational on

sustained we EBITDA XXXX. I presently in in and result are loan to and new with that adjusted contained a us bank EBITDA make adjusted not not expect we with lender. put our agreement would compliance such targeting positive various full profitability the noncompliance As waivers one further the our work to to comment, or deliver advise would are covenants year us for it they with like would

new concludes a prepared the our securing per continues needs Brent. per fund and agreement working our begun We the bank my process and of have turn the capital past the and current to as This call now back practices. I'll lender as remarks to

Brent Kelton

Viraj. you, Thank

adjusted You've year. over improvements year the growth for first on in of of year targets XX% financial revenue our the to just cost and for and financial half track half already heard goals profitability put process adjusted full reductions for profitability year operational EBITDA reaffirm us the EBITDA the Viraj year. during our of Gross first meet and the margin,

steps dedicated growth. tools fourth I'm trained consolidation line the our top through full internal report quarter I support our solution on sales focus in that of the them our you some about and to of the necessary off unify giving sales stack. to the initiatives call drive were sales acquired our sales taken pleased completed resources growth being through to integration have kick our higher personnel personnel take team me solutions we across margin talked that Let undertaking we financial in completed meeting of and year XXXX. On the an a and

broader We that class sales world by capabilities today its organization have a place can represent solutions and team. the in a effectively supported force

to will rolling process the retroactive incensed drive be compensation projects. the the new business gross margin that May in and currently higher to are engage that team out sales Xst solutions to structure sales a of solutions to close team We

ability is our penetrate client base to more to new client Our fully integral and sales to engagements. our force

all As the the are acquired the and leverage unification effort the expand on brand dedicated in their in across growing path. of key marketplace this starting component in enterprises on marketplace. companies few AmeriXXX ourselves already brand just our proactively to is and marketing SAP under consultants are of front one reputation we A of migration positioning

which first weekend. that a was external was launching in website this last process over done The new step

attended Next we month makers chosen current industry's and that Sapphire to in conference SAP's is we have will to largest be is CIOs by launch Now CMOs enterprises Now, and our exhibiting annual IT brand basically clients unified where the attendance. Sapphire prospective spin. of at decision user event AmeriXXX

to Orlando clients. host in our team solutions and with meet sales large and our targeted from booth, staff perspective people XX have will We clients

We blockchain, be Technologies a reality, will business disruptive certain session certain intelligence fundamentally such disruptive IoT. artificial also leading virtual how machine as and learning, models. technologies on are changing or technology

we scheduled SAP group and buying host that directly input roadmap be and from very partnered X specific clients plans. our have meetings a in are past to team. out to clients booth that of XX attendance of anywhere this term also appreciation discuss stop near to place and with of client We their a evening. our sales them invite select with reaching hosting people XXXX one contacts has our nice over from current to to Each clients prospective We've by and personally get from a solutions in will

is of industry experience and team They be solution thoughts cloud take clients heart a on Sapphire. a at by solutions and/or busy expertise guide also our with significant but advantage roadmaps is a the that the delivery leaders strategic are sales approach. competitive give our advance digital and will to not in leaders selling SAP at only role Our to market us backed very teams the solution respected who

As Last supplier leading we're consumer and packaging business development of and our our with new announced win a manufacturer products. beverage part a North building week migration and storage food of opportunity American client with SAP. we also initiatives collaboration a

future subsidiaries demonstrates close solution project a this win SAP securing securing its to and addition opportunities. award opportunities that new and within In growing collaboration this holds client based with and our

SAP needs. and trusted deployment have their a win-win a and show right clients both as for customers that can In is we SAPs partner transformation turn SAP digital is their We demonstrated solution near we and in SAP companies our speak SAP current for future Sapphire remain It that are roadmap. sales to further and line enhance at sales senior costs will our closely our and with monitor joint in Concurrently activities this with leadership. continue we disciplined our managing and to opportunities. intend visibility strategically spending strategic to

improvement to quarter are These As greater operating have cash have we about productivity given implemented of cost the cost as savings where annualized expense million solutions we designed Viraj actions are generate together an full the profitable with today. hope of I a in basis produce on exit designed X.X XXXX. second year. noted and prepared and focus measures remarks to on the profitability sales you are more we my sense a reductions for

the to and organization my to a are term strategic sustain well for secure more call our and with singular as We migration you vision SAP we Operator and with our a together prepared with remarks. tailwind serving unique growth platform infrastructure can This open a growth unified questions. efficient positioned market position for profitability concludes a success. with are please long

Operator

Instructions]. [Operator

Northland go of Our Rees first from Robert Please Capital. question ahead. comes

Robert Rees

just I maybe plans the bit for you customer the was could a just wins existing new some about to - if breakout how trying Viraj in wins maybe customers customer kind base. go little customer forward talk understand whole wondering of and between new

Brent Kelton

Brent. is off start will chime Viraj needed This can and Sure. in. if I

kind just to little add win. on bit those me comments a of color new the let more So

to you solution pressure we those and on look I three wins QX at of or released think leases had kind just that then wins had announced we project one eight a of of with we far point. actually if in So we've total and we've so QX several announced this up based

those ones from but split digital and and - those in exciting are clients of quick size of between that on in are and engaged the XX as us of far are were half QX deals those thing XXXX in wins expand wins another those the just project $XX in for just about I in know actively Also just are of all are current the clients. net beyond minute the and new that well space, around or of of we're clients past half So currently could pipeline tracking about those those of - those talk clients for look have current is out doing of about with and and that work are and specifically cloud enterprise. they on four very we revenue weighted pipeline those clients. And and then that is for roughly new QX five opportunities sales if you note so glancing a a others million them mean are

So they fit exactly within our strategic stack.

Robert Rees

product maybe then expect path. or or And customers digital pretty clients, you the XXXX? and think of ton much stay a look same XXXX about you kind migration you you this Perfect. trends thinking if change forward with cloud beyond they'll Do facing new do are to trends those with how etcetera those

Brent Kelton

particularly now XXXX and which see core moving we specific but e-commerce are very to those in of know focused certain by are the S/XHANA. that are I to space core that's a waiting core being think is more necessarily deadline, mean in are they more and new the more not more beyond will as we driven by concentration I they which somewhat which right deadline are between I as that - some ERP that driven shift digital stand XXXX and think not is by is to what because kind factors customers ERP you again cloud split will what's driven the that projects evenly are success projects

good some cloud public will based Now be or either but a on premise cloud. of some in of be be them will of still those will versus number those private a they'll be cloud

Robert Rees

going seasonality that one How think know your the forward reiterated Got I Viraj side? think about we or for should as that we the guidance. about you've maybe financial you. model here, Maybe revenue on

Viraj Patel

of we I happen there a Brent don't definitely that these as and good perspective each on lot to higher things XX% you will expect trend have be than better also seasonality QX each to QX think to we a we be are growth. our and he much numbers. to like the Sapphire things you of higher so know So full year-over-year top our than at from expect of QX expect know said quarters in we we revenue in year QX and be other expect trend goes

Robert Rees

Is I When only half into account of do. anything remainder know of second year work there you kind track people as anything there close and out Is taken clients of haven't you you there as because about ability out don't the there that stuff the - go yet. into that get I and plays that - this think to the get holidays think done. you about maybe this

Brent Kelton

necessarily, right the core selling now. really into year so we're the basically time Not of

QX and and with So really are people as really a our IT in and beginning course so of Sapphire big the allocating marketing and then when budgets well. QX up their spending to for budgets that it's technology spend and are we're with ramp - of the

closing be QX strongest generation of years those even those breaks. you and challenge and of always over Thanksgiving months deals Christmas of obviously is and know and tend little year a out course a of of QX and to usually QX spreads on I sometimes the deals. end So the bit revenue with mean deals

client don't bit current that's just be deployed hard our those to keep major, this to not out projects that in I but not to during of most think accounted going and able do are on a to year the working pushing and We a negotiation be teams periods their of that's for. billing anything little sometimes with

Robert Rees

I more question. one quick will ask

is How etcetera, projects. would I you the of So new projects offset then in or you and pricing and increase are in say the I think kind do any about mean the to guess pressure with of what hours new seeing you do pricing the terms it. as going customers you billable environment

Brent Kelton

now and others SAP to in and in in pricing is much it's which expect of rate our we so end highest wave more command pricing than the demand right supply run at Pricing pretty moment - we uptick for the pricing very of the the Actually the with of core bill pretty digital pretty pricing fairly for because the space experienced front areas know of e-commerce cloud migration area strong, of this at through strong is board part certain resources high across the and is is beginning even strong example to think [indiscernible] strong World but least in you Hybris. remain is and this now. very with the Again I kind year. most S/XHANA business be strong the ERP of very

So getting at we're lot a the not pressure of moment. price

Operator

[Operator Instructions].

from question next ahead. Tom go comes Please Panamax Our Capital. Blinten of

Tom Blinten

increase see do blockchain? Brent, activity you any or in

Brent Kelton

announcement increasing a chain. this is blockchain if made just SAP you about SAP very initiative discussions So officially week supply the closely around an in and world follow actually launching blockchain

kind talking that a been already building to a little that opportunity them make see started see where the they've where formal play of it So we behind offerings. area announcement some for and while the that's because nice but about big about want have it's practice to scenes we we

identify really and the cost sense a funding trying clients from technology at So discussion standpoint, from very make and it's that this standpoint. point standpoint, to a still with a much phase from use process business cases really

capability on on us trying yet, it to presentation one be and we but we about will Sapphire be feel and blockchain want of work will be really finally kind far think in continue and front so fitting right week some that the and projects we them but them announcement really to and with are continue on not about to of of SAP, around formal want making we install SAP necessary them no opportunities that's be this how the with not of So world to what started specifically but initially base really debunk part talking our may we our session out much in we SAP with we of on of I space will being phase. feel us SAP to opportunities that, very come to for behind that it some will we the were see that of will even and are glad very - out Sapphire know going opportunity be of build within the couple focused myths blockchain but it start our a identification still I but like closely the with more new we opportunities

Operator

session. conference answer Instructions]. [Operator any to like This to for closing over and back turn Kelton remarks. concludes Brent I our question would the

Brent Kelton

us very we will this talk next for appreciate it to much morning the time Thank and for on and and the joining we you call. you

Operator

concluded. today's has The now presentation. Thank attending you for conference

may You disconnect. now