National Research (NRC) - 2020 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Recurring contract value at the end of Q1 2020 was $140.4 million, representing an 11% growth year-over-year [6] - Q1 2020 revenue was $33.9 million, an increase of 8% compared to Q1 2019 [8] - Net income for Q1 2020 was $11.8 million, compared to $8.2 million in 2019 [14] Business Line Data and Key Metrics Changes - Recurring contract value for the Digital Voice of the Customer platform solutions increased to $102.9 million from $77.6 million year-over-year [7] - Digital Voice of the Customer platform solutions accounted for 69% of total revenue in Q1 2020, up from 58% in Q1 2019 [8] Market Data and Key Metrics Changes - Health care system clients with agreements for multiple solutions represented 28% of the client base at the end of Q1 2020, up from 25% in the same period last year [7] Company Strategy and Development Direction - The company acknowledges the uncertainty in the economic environment due to the COVID-19 pandemic and anticipates that sales, revenue, and margin expansion may not follow past growth trends [6] - The shift in revenue mix from legacy solutions to Voice of the Customer platform revenue is noted as a strategic focus [10] Management's Comments on Operating Environment and Future Outlook - Management expressed gratitude to frontline caregivers during the COVID-19 pandemic and recognized the potential extended financial impact on the healthcare sector [5] - The company refrained from speculating on the specific impacts of the pandemic on clients or its own operations [6] Other Important Information - Total operating expenses for Q1 2020 were $22.7 million, an increase of 9% compared to the prior year [9] - Selling, general, and administrative expenses increased to $8.7 million in Q1 2020, primarily due to higher salary and benefit costs [12] Q&A Session Summary - The call concluded with a message of support for those on the front lines battling the pandemic, but no specific questions or answers were recorded in the provided content [16]