Financial Data and Key Metrics Changes - Revenue reached $310 million, up 15% year-over-year, marking the sixth consecutive quarter of revenue growth and the third straight quarter of double-digit year-over-year increases [4][12] - Earnings per share (EPS) was $0.22, up 29% from $0.17 in the prior year [12] - SaaS Annual Recurring Revenue (ARR) grew 24% year-over-year to $216 million [4][12] - Total bookings increased by 21% year-over-year, reflecting strong customer demand [13] Business Line Data and Key Metrics Changes - Product revenue was $194 million, growing 20% year-over-year and achieving six consecutive quarters of product revenue growth [13] - Subscription and support revenue totaled $116 million, up 9% year-over-year, with total recurring revenue growing 8% year-over-year, representing 36% of total revenue [14] - Non-GAAP gross margin was 61.3%, impacted by industry-wide increases in component costs [15] Market Data and Key Metrics Changes - Strong performance was noted in Asia-Pacific and EMEA regions, with significant new customer wins contributing to growth [14] - 36 customers spent over $1 million with the company in the quarter, up from 34 last quarter and 27 in the prior year [14] Company Strategy and Development Direction - The company is focused on expanding its market share through innovative technology solutions, including Extreme Fabric and Extreme Platform ONE, which leverage AI for enhanced networking capabilities [4][5] - The company aims to achieve a revenue growth target of 10% for the fiscal year 2026, with a strong emphasis on SaaS ARR growth in the low 20% range [11][17] - The company is positioning itself as a strategic alternative to incumbents, particularly in the public sector and hospitality markets [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to recover gross margins through price increases and operational efficiencies [15][20] - The company anticipates continued growth in large opportunities and believes fiscal 2026 will mark an inflection point in its growth trajectory [11] - Management highlighted the competitive landscape, noting confusion among competitors as an opportunity for the company to gain market share [28][70] Other Important Information - The company has been recognized as a leader in the 2025 MarketScape by IDC, highlighting its unique technology and deployment flexibility [5] - The company is committed to corporate responsibility, having reduced emissions by 34% since 2021 and aiming for 50% renewable electricity sourcing [11] Q&A Session Summary Question: Can you talk more about component price increases impacting gross margins? - Management acknowledged rising prices in memory and optics, implementing price increases to recover costs, with expectations to improve gross margins over time [20][21] Question: What is the impact of the federal government shutdown on your business? - Management indicated that the shutdown had little to no impact, with opportunities opening up in the federal market due to recent certifications [25] Question: How is the competitive environment with Cisco and Juniper? - Management noted confusion in the market due to HPE's acquisition of Juniper and Cisco's partner program overhaul, creating opportunities for the company [27][29] Question: What metrics do you have for Extreme Platform ONE's commercial introduction? - Management stated that it is early to present metrics but noted high adoption and excitement about the capabilities of Platform ONE [38][39] Question: What are the long-term gross margin targets? - Management maintained a long-term gross margin target of 64%-66%, with expectations for recovery in the near term [63][66]

Core Insights - Sylogist Ltd. reported strong Q1 2025 results, achieving record bookings and significant growth in SaaS revenue, indicating successful execution of its SaaS-focused strategy [2][3][7] Financial Performance - Total revenue for Q1 2025 was reported at $16.3 million, with a year-over-year growth of 3% [1] - SaaS Subscription revenue reached $7.8 million, reflecting a 15% year-over-year growth [1] - Annual Recurring Revenue (ARR) increased by 6% year-over-year to $44.3 million, while SaaS ARR grew by 15% to $31.4 million [7] - Bookings surged by 153% year-over-year to $23.1 million, including a significant contract valued at approximately $15 million with the Texas Office of the Attorney General [7] - Adjusted EBITDA margin was reported at 16.1%, equating to $2.62 million [7] Customer Satisfaction and Retention - The company achieved a Net Promoter Score (NPS) of 62, the highest in its history, indicating strong customer satisfaction [3] - SaaS Net Revenue Retention (NRR) stood at 108%, suggesting that existing customers are increasing their investments [3][7] Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.01 per share, scheduled for payment on June 11, 2025, to shareholders of record on May 30, 2025 [3] Strategic Outlook - The company is optimistic about the ongoing acceleration of high-margin SaaS revenue and the potential for operating leverage and scalability in the future [3]