ePlus inc. (NASDAQ:PLUS) Q1 2021 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 04:30 pm ET

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ePlus inc. (NASDAQ:PLUS) Q1 2021 Earnings Conference Call - Final Transcript

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Q & A
Executive
Mark Marron

[Operator Instructions] Our first question is from Maggie Nolan with William Blair. Your line is open.

Analyst
Ted Starck-King

Hi, Mark and Elaine, it's Ted on for Maggie. Can you talk about the demand environment for products and services as the quarter progressed into July and August here as well? Has the demand for our products trough do you think and is it reasonable to expect continuation of growth for the services kind of at the same level we saw during the first quarter?

Executive
Mark Marron

So, first of all, hey, Ted. How are you? And tell Maggie we said congrats on the birth of her daughter. Okay?

Analyst
Ted Starck-King

Yeah, will do.

Executive
Mark Marron

All right. So, a couple of different things. I think when we talked about last quarter, we had talked about that April was kind of in line. So I'll talk about this quarter and then I'll try to give you a little bit going into this quarter, meaning July through September quarter for us. So, April was kind of line with expectations. Overall, the quarter kind of wound up that we thought the way it would. We had a little bit of slowdown at the end of the quarter, some of the projects slowed down, couldn't get on site with some of the services. So even though we had growth of 4.4% on our services overall, there were some opportunities that we couldn't get on site.

The demand that we saw was a little different than -- I won't say different than normal, we were in the right focus area, so everything was really around workforce enablement -- remote workforce enablement that includes collaboration, communication, lot of companies didn't have data center capacity, believe it or not, for all of remote users that they were dealing with, a lot of companies were looking at security solutions in terms of kind of secure access as people were trying to access data from their home and a lot of folks were moving quickly to the cloud. So, for the quarter, it was kind of in line with expectations a little slow going into the end of the quarter, it would be for Q1.

For Q2, it's kind of along the same line, so I can only speak to July, it was kind of in line of where we expected. We still have good visibility into our pipeline overall. Services is a little challenging for a couple of different reasons, one, getting on site, some of the schools not being able to get on site for example, staffing, some of the folks have slowed down a little bit on staffing. But with that said, we've seen pickups in other areas on services with our consultative services and customers looking at our annuity services, but that would be it at a high level.

Analyst
Ted Starck-King

Okay, great. That's really helpful. Can you talk about the higher education in the same local market exposure there and just kind of what you're seeing from a budget standpoint, just given everything that's going on