GTY Technology Holdings Inc. (NASDAQ:GTYH) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 08:30 am ET

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GTY Technology Holdings Inc. (NASDAQ:GTYH) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
John Curran

were down 5% quarter-over-quarter. And our non-GAAP expenses were down by 11%. Sales and marketing expenses were up by 16%, due to our investments in incremental sales reps, which was more than offset by declines in our G&A expenses.

From a cash perspective, our balance decreased by $8.6 million to $16.9 million at the end of the quarter. A little more than half of this decrease was driven by one-time or deal-related payment. The remainder of the decrease was driven by operation.

Now let's take a quick review of our results for the business units. Budgeting continues to be a strong performing segment for us. Questica reported $3.5 million in non-GAAP revenue for the quarter, representing 43% growth year-on-year and 16% quarter-on-quarter.

Sherpa, our budgeting platform that specializes in large enterprise clients, reported $900,000 in non-GAAP revenue for Q3 of '19. Given the size and complexity of the deals for Sherpa, revenue can vary from quarter to quarter due to service delivery timing. Looking at it on a year-to-date basis, non-GAAP revenue for Sherpa was $3.3 million, representing 52% growth year-on-year.

Bonfire, our procurement platform, reported $1.3 million in non-GAAP revenue, representing growth of 55% year-on-year and 17% quarter-on-quarter. Continued strong performance in our procurement business in the marketplace.

eCivis, our grants management platform, reported $1.9 million in non-GAAP revenue, representing growth of 49% year-on-year and 23% quarter-on-quarter. We are seeing early success with our new Fund Max offering.

Open Counter, our permitting platform, reported $500,000 in non-GAAP revenue, representing growth of 35% year-on-year and a decline of 9% quarter-on-quarter. The decline from Q2 was related to the timing of professional services revenue delivery. The underlying subscription business is still growing nicely.

CityBase, our payments platform, reported $1.7 million in non-GAAP revenue, representing growth of 4% year-on-year and the decline of 26% quarter-on-quarter. As I noted earlier, there is some seasonal impact to CityBase's transactional revenue from Q2 to Q3.

Finally, I'd like to give you an update on guidance. We are currently in the middle of our 2020 budget process, and expect to wrap this up in December. We anticipate that we'll be ready to provide an update on guidance in the new year.

Operator, let's open it up for questions. And Steve will provide some closing comments after the Q&A.