Group 1 - ePlus inc. will release its earnings on August 7, 2025, after market close, and will host a conference call at 4:30 p.m. ET to discuss the financial results for the three months ended June 30, 2025 [1] - The conference call will be accessible via a live audio webcast and a toll-free domestic call-in number, with an international number also provided [2] - A replay of the conference call will be available approximately two hours after the call and will remain accessible until August 14, 2025 [2] Group 2 - ePlus is a customer-first, services-led industry leader that offers transformative technology solutions and services, including artificial intelligence, security, cloud and data center, networking, and collaboration [3] - The company has over 2,100 employees and has been in operation for more than three decades, providing specialized and broad levels of experience and knowledge [3] - ePlus is headquartered in Virginia and has locations in the United States, United Kingdom, Europe, and Asia-Pacific [3]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $108.6 million, representing a 15% year-over-year growth [14] - Adjusted EBITDA for Q2 was $21.4 million, with an adjusted EBITDA margin of 20%, an improvement of 80 basis points from the previous year [14] - Free cash flow totaled $25 million, up 21% year-over-year [14] Business Line Data and Key Metrics Changes - Marketplace revenue was $74.7 million, driven by 3.4 million active buyers and a spend per buyer of $318 [15] - Services revenue reached $34 million, representing a year-over-year growth of 8431% [16] - Over 50% of GMV on the Marketplace came from transactions over $200, indicating a shift towards larger, more complex projects [16] Market Data and Key Metrics Changes - Strong demand for AI-related services was noted, with categories such as AI agents and workflow automation experiencing five to tenfold growth over the past six months [6][75] - The company is seeing robust growth in key verticals such as programming and tech, digital marketing, and video animation [5][64] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance its marketplace, with plans to integrate Fiverr's talent network into AI-driven workflows [9] - Fiverr aims to expand its value-added services and maintain a balanced approach between growth and profitability [15] - The company is committed to reaching a 25% adjusted EBITDA margin by 2027 and achieving a 40% CAGR in free cash generation for the three years ending in 2027 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural tailwinds within the marketplace segment, particularly around AI and upmarket adoption, which are expected to offset broader economic headwinds [16] - The company reiterated its revenue and adjusted EBITDA guidance for the full year 2025, expecting revenue to be in the range of $425 million to $438 million [17] Other Important Information - The company is actively exploring strategic partnerships to enhance its AI capabilities and improve customer experiences [58] - Fiverr Go, an AI assistant for freelancers, has shown strong engagement and conversion uplift [12] Q&A Session Summary Question: What key investments are needed to unlock continued scaling of service revenue? - Management expects service revenue to continue growing at a healthy double-digit rate, driven by value-added services and synergies between AutoDS and Fiverr [23] Question: Can you elaborate on the managed services offering and the progress in upmarket strategy? - Managed services are part of the upmarket strategy, with over 50% of business coming from transactions over $200, indicating a shift towards more sophisticated customer needs [28] Question: How is the balance of supply and demand in the marketplace? - The company is in a good position regarding supply and demand, with AI-native freelancers enhancing service offerings [36] Question: What is the outlook for marketplace growth? - Management believes that efforts around AI and upmarket strategies will lead to growth, even without macroeconomic improvements [38] Question: How does AI impact entry-level jobs and demand for Fiverr services? - AI is elevating the capabilities of entry-level workers, allowing them to perform more complex tasks, which benefits Fiverr's service offerings [42] Question: Can you provide insights on the mix of recurring versus transactional revenue in services? - Services revenue is primarily from promoted gigs, Seller Plus, and AutoDS, with ongoing momentum in all areas [46] Question: What is the visibility on marketplace growth and the mix shift between complex and simple services? - Management is optimistic that the mix shift towards complex services will eventually lead to marketplace growth, despite current macroeconomic conditions [54]

Market Overview - The first half of 2025 experienced increased volatility and uncertainty due to President Trump's tariffs and a faster-than-expected cooling of inflation, leading to market recovery [1] - Recent months have shown favorable market conditions with easing trade tensions and a reduction in the Middle East crisis [1] Stock Performance and Recommendations - Optimism regarding artificial intelligence is expected to continue supporting stock prices, particularly in technology sectors [2] - Cooling inflation raises expectations for potential rate cuts starting in September 2025, contributing to a positive market outlook [2] - Stocks such as Cracker Barrel Old Country Store (CBRL), BGSF, ArcBest Corporation (ARCB), Cardinal Health (CAH), and AutoNation (AN) are recommended for monitoring as the second half of 2025 begins [2][6] Screening Strategy - A screening strategy has been developed to identify stocks based on improving broker recommendations and upward revisions in earnings estimates over the past four weeks [3] - The price/sales ratio is included as a valuation metric, focusing on companies with strong top-line performance [3] Screening Criteria - The top 75 companies with net upgrades in broker ratings over the last four weeks are identified [4] - The top 10 stocks with the highest percentage change in earnings estimates for the upcoming quarter are highlighted [4] - Companies in the bottom 10% of price-to-sales ratios are included for better valuation [4] Company Highlights - Cracker Barrel is focusing on menu innovation and pricing strategies to drive growth, introducing new offerings to attract customers [5] - BGSF has seen a 25% increase in shares over the past month and has a Zacks Rank 1, with earnings estimates rising over 300% in the last 60 days [7] - ArcBest is improving productivity and service quality, expecting a 52.1% increase in earnings per share for 2026 compared to 2025 [8] - Cardinal Health is undergoing strategic improvements to revitalize its business model, with its Medical segment expected to drive growth [9][10] - AutoNation's diversified product portfolio and strategic acquisitions support its market position, currently holding a Zacks Rank 3 [11]

Summary of Kindrel's Conference Call Company Overview - **Company**: Kindrel - **Industry**: Technology Services, specifically focused on mission-critical infrastructure services - **Key Services**: Designing, modernizing, and managing complex IT environments [3][4] Core Strategies and Changes - **Three A's Strategy**: - **Alliances**: Strengthening partnerships with major tech providers like Microsoft, Google, AWS, Dell, SAP, and Cisco to broaden service offerings [3][4] - **Advanced Delivery**: Enhancing service efficiency and quality while achieving cost savings [4] - **Accounts Initiative**: Improving profitability from previously unprofitable revenue streams [4] - **Cultural Transformation**: Emphasizing a flat and fast organizational structure to drive progress [4] - **Return to Growth**: Achieved positive constant currency revenue growth in the most recent quarter [4][5] Financial Performance and Outlook - **Revenue Growth**: - Achieved 26% revenue growth and 46-47% growth in signings for consulting services [8][8] - Positive revenue growth outlook for fiscal year 2026, with 75-80% of revenue coming from existing contracts [16][17] - **Fiscal Year 2026 Guidance**: - Projected adjusted pretax income of $725 million, an increase of $240 million from the previous year [17] - Expected adjusted free cash flow of approximately $550 million [17] - **Medium-Term Targets**: - Aiming for over $1 billion in annual cash flow and adjusted pretax income exceeding $1.2 billion by fiscal year 2028 [18][19] Market Position and Competitive Advantage - **Insulation from Macro Environment**: Kindrel's services are mission-critical and non-discretionary, providing significant insulation from macroeconomic volatility [6][11] - **Growth Drivers**: - Key themes include cloud migration, modernization, cybersecurity, AI-related services, and ERP work, particularly with SAP [9][10] - Strong demand for end-to-end solutions, enhancing customer relationships [10] Client Engagement and Market Trends - **Diverse Client Base**: Engagements vary by end market, with consistent demand for technology to drive business outcomes [12][13] - **Regulatory Impact**: Financial services are particularly affected by regulatory changes, increasing demand for security and resiliency [14][15] Consulting Services Growth - **Consulting Contribution**: - Consulting has grown from 10% to 20% of total revenue, with expectations to exceed 25% [29][34] - Projected to continue double-digit growth, contributing significantly to overall revenue growth [35] - **Tech Debt Management**: Kindrel's ability to identify and address tech debt presents ongoing opportunities for consulting services [31][32] IBM Relationship - **Vendor Relationship**: Kindrel procures approximately $2 billion in software from IBM annually, with costs previously increasing by $200 million per year [44][45] - **Cost Management**: Anticipated end of significant cost increases related to IBM, with future price increases being more manageable [45][46] Conclusion - Kindrel is positioned for sustained growth through strategic partnerships, a focus on mission-critical services, and a robust consulting practice, while effectively managing costs and navigating macroeconomic challenges.

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $8 million, representing a 14.6% increase compared to the same quarter in the prior year [4] - Managed services revenue totaled $7.9 million, growing 18.1% year-over-year, while bookings declined to $7.5 million from $9.3 million in the prior year [5] - SaaS revenue decreased to $60,953 from $256,341 in the same quarter of the previous year, reflecting a strategic decision to reduce marketing support for SaaS offerings [6] - Net loss for Q1 2025 was $142,800, or negative $0.01 per share, compared to a net loss of $3.3 million, or negative $0.20 per share, in Q1 2024 [8] - Adjusted EBITDA was negative $76,850, an improvement from negative $3.4 million in the prior year quarter [8] - Cash and investments as of March 31, 2025, totaled $52.2 million, an increase of $1.1 million from the beginning of the quarter [9] Business Line Data and Key Metrics Changes - Managed services revenue from continuing operations, excluding $500,000 from HUSU in the prior year, rose 27.6% year-over-year [5] - Managed services backlog, representing unrecognized revenue from ongoing contracts, totaled $14.9 million as of March 31, 2025 [5] Company Strategy and Development Direction - The company has committed to accelerating its path to profitability by simplifying its organizational structure and focusing on high-growth market segments [12][13] - A strategic decision was made to exit international markets to reduce geopolitical and currency risks, focusing instead on the U.S. market [12] - The company aims to enhance its managed services and improve its service offerings while exploring organic growth and acquisition opportunities [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that the sales pipeline is growing with higher quality clients and larger deal sizes [24][25] - Despite economic uncertainties, management sees positive signs in long-term growth and believes that the current marketing category offers more controllable spending options for clients [25][26] - The company plans to continue its $10 million share repurchase program, indicating confidence in its undervalued shares [16] Other Important Information - The company announced a tender offer to repurchase the remaining 8.7 million shares of its previously announced $10 million stock buyback program [4][10] - The tender offer is set to commence on May 16, 2025, with a pricing range based on the company's 90-day volume-weighted average price [10] Q&A Session Summary Question: What are the expected gross margins for the remainder of the year? - Management indicated that margins are expected to remain stable, with some fluctuations based on service mix [19][20] Question: Are cost-cutting measures complete, and is the current cost structure sustainable? - Management confirmed that some cost reductions are structural, and while they may hire more staff, the current cost structure is deemed sustainable [21][22] Question: Is there evidence of clients pulling back on advertising spending due to economic concerns? - Management noted that while there is uncertainty, their pipeline is growing, and they are engaging with higher-end clients, indicating a positive outlook [24][25] Question: What is the status of M&A opportunities? - Management is opportunistically exploring M&A opportunities but is cautious about ensuring organizational readiness for integration [28][29]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was approximately $8,000,000, representing a 14.6% increase compared to the same quarter in the prior year [4] - Managed services revenue totaled $7,900,000, growing 18.1% year-over-year, while bookings declined to $7,500,000 from $9,300,000 in the prior year [5] - Net loss for Q1 2025 was $142,800, or negative $0.01 per share, compared to a net loss of $3,300,000, or negative $0.20 per share, in Q1 2024 [8] - Adjusted EBITDA was negative $76,850, an improvement from negative $3,400,000 in the prior year quarter [8] - Cash and investments as of March 31, 2025, totaled $52,200,000, an increase of $1,100,000 from the beginning of the quarter [9] Business Line Data and Key Metrics Changes - SaaS revenue decreased to $60,953 in Q1 2025 from $256,341 in the same quarter of the prior year, reflecting a strategic decision to reduce marketing support for SaaS offerings [6] - Total cost of revenue was $4,400,000, or 55.2% of revenue, compared to $4,000,000, or 57.1% of revenue, in the prior year quarter [6] Market Data and Key Metrics Changes - The company exited international markets to focus on the U.S., reducing exposure to geopolitical, tariff, and currency risks [12] - The sales pipeline is trending upward with larger opportunities from higher quality clients [14] Company Strategy and Development Direction - The company is committed to accelerating its path to profitability by simplifying its organizational structure and focusing on high-growth market segments [12][13] - A new go-to-market model has been implemented, emphasizing managed services and enhancing service offerings [13][14] - The company plans to continue its $10,000,000 share repurchase program, believing its shares are undervalued [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges uncertainty in the economy but reports a growing pipeline and increasing quality of client engagements [25] - There are indications that some clients are viewing the company's services as a more controllable marketing spend compared to traditional advertising [26] - The company is exploring M&A opportunities but is cautious about valuations and ensuring organizational readiness for integration [29][30] Other Important Information - The company announced a tender offer to repurchase up to 8,700,000 shares, which is part of its ongoing buyback program [10] - The company has no debt on its balance sheet, positioning it well for future growth and acquisition opportunities [9][11] Q&A Session Summary Question: Can you elaborate on gross margins for the remainder of the year? - Management indicated that margins are expected to be stable, with some fluctuations based on service mix [19][20] Question: Are cost-cutting measures complete? - Management stated that while some costs are structural, they are positioned to manage expenses effectively while still aiming for growth [20][21] Question: Is there evidence of clients pulling back on advertising dollars? - Management noted that while there is uncertainty, the pipeline is growing, and clients are increasingly engaging in substantial conversations [25][26] Question: What about M&A opportunities? - Management is cautiously exploring M&A opportunities and ramping up relationships with investment bankers, ensuring readiness for potential integrations [29][30]

Financial Data and Key Metrics Changes - The first quarter revenue was $88.7 million, a slight increase of 0.2% from $88.5 million in Q1 2024 [16] - Non-GAAP gross profit was $29.7 million, down 8.6% from $32.5 million in Q1 2024, with a non-GAAP gross margin of 33.5% compared to 36.7% in the prior year [16][20] - Non-GAAP net income for Q1 2025 was $2.6 million or $0.03 per diluted share, down from $4.7 million or $0.05 per diluted share in Q1 2024 [20] Business Line Data and Key Metrics Changes - Revenue from India was $42.9 million, an increase of 65% year over year, with bookings at the highest level since Q1 2024 [9][10] - North America revenue was $17.6 million, rebounding from $13.4 million in Q4 2024, with contributions from E2E Technologies included [10][16] - Managed services are a strategic priority, with strong interest observed at Mobile World Congress, indicating a shift towards software-driven services [8] Market Data and Key Metrics Changes - The company noted strong demand for microwave and millimeter wave products, particularly in North America and Europe [7] - E2E Technologies' bookings in Q1 outperformed expectations, contributing to revenue in line with forecasts [9] - The tariff dynamics are creating instability for certain customers, particularly in private networks, but overall customer activity remains steady [11] Company Strategy and Development Direction - The company is focused on expanding its presence in private networks and millimeter wave markets, with ongoing evaluations of strategic M&A opportunities [12][13] - The acquisition of E2E Technologies is expected to enhance capabilities in private networks, particularly in the energy and utilities sector [9] - The shift to software-driven services is anticipated to increase annual recurring revenue and improve margins compared to traditional hardware business [8] Management's Comments on Operating Environment and Future Outlook - Management reiterated the 2025 revenue guidance of $390 million to $430 million, expecting a significant uptick in the second half of the year, primarily driven by India [23][37] - The company remains vigilant regarding tariff impacts but believes the net effect on profitability will be minimal [12] - Positive demand signals were observed during the Mobile World Congress, reinforcing the company's strategic alignment for long-term success [6] Other Important Information - The cash position at the end of Q1 2025 was $27.7 million, down from $35.3 million at the end of 2024, primarily due to acquisition-related cash payments [21] - Inventory increased slightly to $62.3 million as preparations for new E band products are underway [21] Q&A Session Summary Question: Strength in bookings in India - Management indicated that bookings are not concentrated on a single customer but distributed among two main customers, with potential for a third significant project [24][25] Question: Potential significant opportunity in North America - Management described opportunities in North America as potentially meaningful, with estimates of over $10 million annually for a few years [27] Question: Gross margin expansion opportunities - Management noted that gross margin expansion could come from improved revenue mix, economies of scale, and increased sales of software and private network solutions [28][29] Question: Growth in India and its importance - Management confirmed that the main growth uptick is expected in the second half of the year, driven by significant deployments in India [37] Question: Impact of tariffs on customer decision timelines - Management reported no significant changes in buying patterns from CSPs, although there were some hesitations in closing deals on private networks [40] Question: Demand for private networks and geographic performance - Management highlighted increased interest in point-to-multipoint solutions and noted successful POCs in both North America and Europe [41][42] Question: Competitive environment in North America and Europe - Management observed no major changes in competition but noted increased interest in replacing Chinese vendors in Europe [50][51]

Company Leadership - Trigyn Technologies Ltd. has appointed Vikram Chandna as the new Chief Executive Officer, effective immediately, and he will be based in the USA [1][2] - Vikram Chandna will provide strategic leadership, focusing on scalable profitability and strengthening client relationships while driving growth and transformation initiatives [2][3] Executive Background - Vikram Chandna previously served as Vertical Business Unit Head for Financial Services and Hi-Tech at Birlasoft and has held significant leadership roles at Capgemini and Wipro Technologies [3] - His professional experience spans multiple regions, including Japan, India, and the United States, providing a cross-cultural perspective to Trigyn's global operations [3] Company Overview - Trigyn Technologies Ltd. is a global provider of IT services, solutions, and staffing, catering to public sector entities, international organizations, and major corporations [4] - The company emphasizes advanced technologies, innovation, and service excellence, offering customized solutions in areas such as cloud computing, cybersecurity, AI, data analytics, application development, and managed services [4]