Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: You mentioned that sales cycles have elongated. What inning do you think you're in, in terms of seeing results from changes in the sales team?
A: (Dhrupad Trivedi - President & CEO) We are probably in the second or third inning. The typical sales cycle is 6 to 9 months, and as new processes and people ramp up fully, we are seeing the progression at this pace.
Q: How are the conversations going? Do you feel like you still have pricing power in this environment?
A: (Dhrupad Trivedi - President & CEO) There is broad inflationary cost pressure on input costs, which is well understood and accepted by our customers. Our focus is to drive margin through efficiency and operational gains, rather than through price increases.
Q: Could you talk about your capital allocation priorities and future room for buybacks?
A: (Dhrupad Trivedi - President & CEO) Our first priority is funding organic growth, followed by a balanced approach between dividends and buybacks for returning capital to shareholders. We have active buyback programs and are always looking for inorganic opportunities to accelerate our strategy.
Q: Do you feel like your business has hit an inflection point?
A: (Dhrupad Trivedi - President & CEO) Compared to 6 to 12 months ago, things are not worsening. We see our customers more engaged on actual projects, indicating a positive trend, although it's too early to declare an inflection point.
Q: Can you explain the underlying trends behind the mix of Service Provider and Enterprise segments in Q1?
A: (Dhrupad Trivedi - President & CEO) The Enterprise segment faced a challenging Q1 to Q1 comparison due to an unusually strong quarter last year. Service Provider growth in APJ was a result of delayed spending which materialized in Q1.
Q: What are your investment focuses in the sales process, especially regarding the Service Provider side?
A: (Dhrupad Trivedi - President & CEO) For Service Providers, the focus is on maintaining strong relationships and aligning our technical capabilities with their future directions. For the Enterprise side, the focus is on acquiring new customers and expanding our presence.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
