Financial Data and Key Metrics Changes - Revenue for Q1 FY 2025 increased by 12% to $61.7 million from $55.1 million in Q1 FY 2024, reflecting organic growth of 10% and approximately $1 million from a recent acquisition [9] - Adjusted EBITDA rose by 17% to $16.4 million, with an adjusted EBITDA margin of 26.5%, up from 25.4% in the prior year [11] - Annual recurring revenues increased by 7.6% to $193.3 million compared to $179.6 million in Q1 FY 2024 [10] Business Line Data and Key Metrics Changes - SaaS revenue grew by 16%, contributing significantly to overall revenue growth [5] - Payments revenue increased by 7%, with expectations for SaaS and payments revenues to outpace other revenue forms for the remainder of the year [10] - Non-recurring software license sales surged to $2.7 million in Q1 FY 2025 from $400,000 in Q1 FY 2024, although total software license sales for FY 2025 are expected to be similar to FY 2024 [10] Market Data and Key Metrics Changes - Public sector revenues increased by 12% to $48.8 million, representing 79% of total revenues, driven by recurring revenue streams [12] - Healthcare segment revenues rose by 14% to $13.2 million, primarily due to recurring software services and non-recurring software license sales [13] Company Strategy and Development Direction - The company emphasizes integrating payments within its vertical market software base, particularly in utilities and permitting [6] - M&A remains a crucial part of the company's strategy, focusing on acquisitions in the public sector vertical to enhance market penetration and product offerings [20][21] - The company is transitioning legacy contracts to a SaaS model and upgrading products to meet current market demands [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, expecting high single-digit organic revenue growth and adjusted EBITDA margin improvement [16] - The company anticipates a strong pipeline for M&A opportunities, particularly in the public sector, with no significant changes in the competitive landscape [20][60] Other Important Information - The company has a strong balance sheet with a cash balance of $85.6 million and $450 million of borrowing capacity on its revolving credit [15] - Guidance for FY 2025 includes revenue expectations of $243 million to $263 million and adjusted EBITDA of $63 million to $71.5 million [16] Q&A Session Summary Question: Improvement in healthcare segment growth - Management noted that most one-time software license sales were in the healthcare segment, expecting low single-digit growth for healthcare this year [35] Question: Revenue cadence and license pull forward - Management confirmed that approximately $1.8 million was the license pull forward from Q2 to Q1 [36] Question: Margin expansion expectations - Management indicated that Q3 has historically been the low point for margins, with expectations for similar trends this year [39] Question: Update on large utility customer project - Management reported that the project is progressing well, with revenue expected to stair-step up from approximately $3 million to $5 million this year [39] Question: Long-term opportunities with larger utilities - Management highlighted a positive competitive landscape driven by the need to upgrade legacy software, with increasing demand for their products and services [44] Question: Differences in M&A opportunities - Management stated that their sweet spot for acquisitions remains between $2 million and $5 million in EBITDA, with no significant changes in the competitive environment [58] Question: Organic growth drivers - Management provided insights into the high single-digit organic growth, attributing it to new logos and existing projects, with a net dollar retention rate of 100% [73]