NIC Inc. (NASDAQ:EGOV) Q4 2014 Earnings Conference Call - Final Transcript

Feb 05, 2015 • 04:30 pm ET


NIC Inc. (NASDAQ:EGOV) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, and welcome to the NIC Inc. Fourth Quarter 2014 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Angela David. Please go ahead.

Angela Davied

Thank you, Whitney. Good afternoon, everyone, and welcome to NIC's Fourth Quarter Earnings Call. The press release for NIC's fourth quarter 2014 earnings announcement was issued 30 minutes ago, and our earnings release is also available on our corporate website at You may also call our headquarters at (877) 234-3468, and we will email the information to you.Following a reading of our cautionary statement regarding forward-looking information, CEO, Harry Herington; Chief Operating Officer, Robert Knapp; and Steve Kovzan, NIC's Chief Financial Officer, will deliver prepared remarks. Then, we'll open for questions.

(Forward Looking cautionary Statements)

Now it is my pleasure to introduce Harry Herington, NIC's Chief Executive Officer and Chairman of the board.

Harry H. Herington

Thank you, Angela. Welcome to our fourth quarter earnings call, and thank you for joining us today. Since the earliest days of NIC, we believe certain core elements were critical to sustaining a successful business. First, we placed our focus on citizens and businesses. We wanted to improve government interactions for them and making dealing with government more efficient and more convenient. We also decided early on, it was important

Harry H. Herington

to develop a funding mechanism that was steady in good government budgetary times as well as times of government budget shortfalls. This resulted in our self-funded model with its recurring revenue streams. And finally, we have always had a long-term focus, concentrating more on making the right investments and decisions that will grow our business years into the future.

These core tenets hold true today and delivered solid financial results this past year. Our core business performed exactly as it was designed to. Existing and prospective partners continued to see the value of our model. We kept innovating and creating new ways to make government experiences better, and we grew existing services that drove healthy organic growth. Specifically, this year, our Connecticut portal got up and running. Our team focused on making it easier to conduct business with the Department of Motor Vehicles.

We also signed a master contract, and just recently, finalized agreements with the State of Louisiana to commence the pilot phase of the Department of Public Safety, which will require substantial investment on our part in 2015, that Robert and Steve will discuss in greater detail.We had a record year of contract renewals and rebids with 6 new long-term contracts signed.

We launched nearly 40 new government mobile applications and hundreds of new eGovernment services, and securely processed more than $20 billion in payments on behalf of our government partners. And we accomplished all of this while maintaining a strong, new state pipeline and a high level of interest in our self-funded model. In fact, South Dakota recently issued a Request for Proposal for self-funded eGovernment services, and we are optimistic that additional RFPs will be released this