National Research (NRC) 2 Aug 232023 Q2 Earnings call transcript

Hello and welcome to today’s National Research Corporation Second Quarter 2023 Earnings Call. My name is Bailey and I will be your moderator for today. [Operator Instructions] I’d now like to pass the conference over to Kevin Karas, Chief Financial Officer. Please go ahead.

Thank you, Bailey and welcome everyone to National Research Corporation’s 2023 second quarter earnings call. Karas, CFO. Kevin is name the company’s My And Stacy, our on the is Linda call today Vice joining me President of Finance.

I’d any may continue, conditions of we like Linda Linda? ask Before to today’s related call. to made forward-looking be that statements as part to review

that pursuant actual those Kevin. company made results statements the to materially conference from or anticipated. provisions Private to This uncertainties These of are and you, Act Securities includes forward-looking outcomes risks Thank related Safe Harbor Litigation that currently forward-looking statements of to call the involve could cause the XXXX. differ Reform

For the could affect company’s further Exchange the see the facts with please and Securities results, information about filings Commission. the company’s that future

With that, I’ll it to turn back you, Kevin.

everyone. Thanks, Linda. again, And welcome,

quarters, force we our program. supporting several focused on expanded significantly and rollout spend past of human sales the have the our understanding marketing Over

representing our from rollout growth from program is successful line of understanding several our has XX%, program the it’s clients of increase with been the human converting has in resulted XX% very in effective resources of current early quarter of with in solutions from of program in the of which compared adoption opportunities in While new second second marketing human stronger and new understanding years logos days, Today, sales the momentum partner XXXX. to and two-thirds a in for been we pipeline gained one-third organizations. the clients a results material value are adoption building real-time Contract which ago. expansion sales sales by XXXX, existing quarter

our then the back call call turn for review me the to and over open Linda questions. performance Let financial to

in the including Revenue We of $XXX.X quarter other of million TRCV, compared solutions. the a of non-core in solutions. increase closure for the to our for ended X%, by XXXX our Thank with TRCV the core second decreased partially operations Canadian discontinuation X% quarter attributed Kevin. and you, of XXXX to second quarter

respective metric most renewal or under assuming Our upsells, total their the recent next annual revenue the contracts for as increases end. quarter TRCV projected periods, of price the represents cancellations measured all renewable downsells,

decreased income of due brand development. decline to expenses growth expand the in primarily compared sales second to in XX% XXXX of quarter of quarter $XXX,XXX Operating XXXX, revenue by support the second recognition the and for marketing and to

been of our the cost with have We quarter. were results this focusing alignment and requirements business positive structure on the

a expansion, able gross Although reduce we X.X% increased marketing quarter spending income quarter first in margin as improvement the consolidated in a and margin sales X.X% and to we XXXX. were to expenses, of operating resulting for operating the compared second

compared future other XX% changes the of exercise alignment of second in XXXX implementing share-based will The compensation was margin in effective increased quarterly benefits XXXX, primarily rate enable XX% quarters. are due to cost improvement quarter continued We that the in tax tax to awards. from

the payments growth XXXX, morning. projects, of for The for growth, company’s during its and for innovation million XXXX. million as shareholder $X $X.X capital and and company of maintained activity acquisition dividends second In comments this dividend repurchases. funded share Board well as priorities funding including investments innovation merger of internal allocation and repurchases Directors share quarter the my concludes for million That $X.X and

to I turn Kevin. will now call back the you,

This prepared remarks. completes our

questions. to ask will you I open call Bailey, the So to any

you. Thank

today, sharing look to to for your time forward our close quarter. we thanking like and results again next would by Just everyone

This participation. call. concludes Thank for conference all you your today’s

now disconnect your lines. may You