American Software Inc (NASDAQ:AMSWA) Q4 2019 Earnings Conference Call Transcript

Jun 19, 2019 • 05:00 pm ET

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American Software Inc (NASDAQ:AMSWA) Q4 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Absolutely. (Operator Instructions) We'll go and take our first question from Matt from William Blair. Please go ahead. Your line is open.

Analyst
Matthew Pfau

Hey, Allan and Vince, can you guys hear me okay?

Executive
Vincent Klinges

Yeah.

Executive
H. Allan Dow

Yeah, Matt, we can hear you.

Analyst
Matthew Pfau

Great. So, first, it sounds like the deals that were delayed, those have been closed, so that issue has been rectified. What about in general on the sales cycles, have they returned to a more normal cadence or are you still seeing them a bit of long-dated?

Executive
H. Allan Dow

There's a mix, Matt. That's a good question. We are still seeing some areas where the cycle is longer than we have traditionally seen, but we're also now seeing some acceleration. We've got a number of those contracts that we actually closed this quarter that are shorter than we had seen over the last fiscal year. So, we're encouraged by that. We think that it's a combination of some of the market conditions settling out with the reality that they need to move forward regardless of some of the macroeconomic conditions and various things that are happening across the globe, but also the impact that Mac has had and helping us position a stronger "Get Started Now" message.

Analyst
Matthew Pfau

And are fears over tariffs having any impact, either positive or negative, on your business?

Executive
H. Allan Dow

It's an interesting -- another interesting one. It's actually both. So some of the acceleration has come as a result of companies realizing that this dynamic environment is probably going to continue when you think about tariffs and trade wars and Brexit and all the different things that are going on rather than -- a few companies have rather than just be fearful of them back down, they're saying this is the new reality we have to act. On the other hand, we've had companies that said, this new news given us pause and made up is nervous, so we're going to wait and see a little bit. So we're seeing some of both actually. So it's kind of a strange environment right now.

Analyst
Matthew Pfau

Got it. And in terms of investments for the next fiscal year, you talked about some of the strategies Mac has implemented and they have already started to show some results. Is there additional investment there needed in the segment case in your strategy and also the strategy to, perhaps, sign larger deals as well as bring on some partners and any other key areas you would call out as investments for the upcoming fiscal year?

Executive
Vincent Klinges

Well, the primary investment is, under Mac's leadership, we are expanding the sales team. So that's an effort that will come forward for us. We believe that the shortened sales cycle -- we -- could actually have an impact on the back half of the year, near the end of the year from that investment. Some of the other things are really just strategically how do we position, how do we organize. So they don't require a financial investment, it requires an