The following is a summary of the PowerSchool Holdings, Inc. (PWSC) Q1 2024 Earnings Call Transcript:
Financial Performance:
PowerSchool reported Q1 revenue of $185 million, showing a growth of 16% year-over-year.
Subscription and support revenue grew by 18% to $167 million.
Adjusted EBITDA improved by 24% YoY to $61 million, representing a 33% margin, an increase of over 2 percentage points from the previous year.
Annual Recurring Revenue grew by 18%, while Net Revenue Retention improved by 30 basis points sequentially to 107%.
For Q2 2024, the company predicts a total revenue in the range of $192 million to $197 million, with the total revenue for the year expected to be between $786 million and $792 million.
Full-year adjusted EBITDA is forecasted to be between $268 million to $273 million.
Since 2019, the company has more than doubled its revenue and almost tripled its adjusted EBITDA.
Business Progress:
The company exceeded Q1 revenue outlook and adjusted EBITDA expectations, carrying momentum into 2024.
Notable cross-sell wins were observed with several school districts.
PowerSchool expanded its presence in the Middle East, Latin America, and India.
The acquisition of Allovue strengthened the company's suite of K-12 data and analytics tools.
The launch of PowerBuddy, an AI-driven tool, is aimed at supporting teachers and integrating seamlessly within Schoology and performance matters.
The company continues to focus on cross-selling of products, prioritizing data and analytics products, budgeting solutions, and parent engagement communication solutions.
PowerSchool identified high-growth, untapped markets including the Middle East, Latin America, and India as key focus areas for long-term growth.
The company successfully landed a significant deal with Indiana Department of Education, marking the largest special programs opportunity to date.
More details: PowerSchool IR
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