{"id":131560,"date":"2022-07-22T04:28:46","date_gmt":"2022-07-22T08:28:46","guid":{"rendered":"https:\/\/44.250.171.167\/?p=131560"},"modified":"2022-10-06T04:35:07","modified_gmt":"2022-10-06T08:35:07","slug":"newgen-software-technologies-limited-q1-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q1-fy23-earnings-conference-call-insights\/","title":{"rendered":"Newgen Software Technologies Limited Q1 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p><iframe loading=\"lazy\" title=\"Newgen Software Technologies Limited Q1 FY23 Earnings Concall\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/le4H1ngVL68?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><strong>Key highlights from Newgen Software Technologies Limited (<a href=\"https:\/\/44.250.171.167\/symbol\/NEWGEN\/\">NEWGEN<\/a>) Q1 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>NEWGEN said it is increasingly seeing growth in cloud subscription business which grew by 33%. Cloud and subscription revenue put together have now reached 38% of total revenue. This shift, the company said, is expected to lower the seasonality and lead to more uniform revenues across the quarters.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>Akshat Agarwal of Jefferies asked why the company is seeing a steady decline in new logo additions over the past several quarters. Virender Jeet CEO replied that historically NEWGEN has been able to generate 50-60 logos a year. Also NEWGEN has deliberately moved away from channel based sales that used to generate larger momentum of logos.<\/li>\n<\/ul>\n<ul>\n<li>Akshat Agarwal of Jefferies also asked the company was expecting step-up in growth in the US markets, driven by partnerships with GSIs. Virender Jeet CEO replied that in last 6 quarters, NEWGEN had a one-time PPP revenue which was generally between INR5-8 crores in every quarter that was not sustainable and recoverable. Secondly, NEWGEN has completely shifted from license sales. \u00a0On the GSI side, the funnel is positive but the deal flows are not as expected.<\/li>\n<\/ul>\n<ul>\n<li>Sachin Jain with Carnelian asked about qualitative input on the GSI front as NEWGEN\u2019s efforts towards US is not showing meaningful traction. Virender Jeet CEO replied that in US in the direct sale business, during COVID NEWGEN didn\u2019t see long term potential in some of that account base. So there was a deliberate pivot of leaving a large part of that and going to slightly larger accounts.<\/li>\n<\/ul>\n<ul>\n<li>Sachin Jain with Carnelian also asked about the number of deals for GSI for this year. Virender Jeet CEO replied that the company is expecting around 15 deals coming from this channel.<\/li>\n<\/ul>\n<ul>\n<li>Girish Shetty of Banyan Tree asked about the average ticket size of the six logos acquired. Virender Jeet CEO replied that these are all larger logos, maybe around $400-500K would be the average ticket size.<\/li>\n<\/ul>\n<ul>\n<li>Girish Shetty of Banyan Tree asked about attrition for 1Q23 and the total number of employees. Virender Jeet CEO said the employees are around 3,350 and attrition is slightly better than last quarter, but not seeing a significant shift in attritions yet. The planned attrition for 2Q23 is showing a decline of 5-6%.<\/li>\n<\/ul>\n<ul>\n<li>Saurabh Sadhwani with Sahasrar Capital enquired if India business momentum will be sustained throughout the year. Virender Jeet CEO said that whatever business happens is now more sustainable as the base of the business has gone up and the jerkiness is going away. So the India growth achieved in 1Q23 NEWGEN should be able to maintain and grow on those numbers.<\/li>\n<\/ul>\n<ul>\n<li>Saurabh Sadhwani with Sahasrar Capital asked how many of the new logos are subscription based. Virender Jeet CEO clarified that one of them in India is licensed and rest is subscription.<\/li>\n<\/ul>\n<ul>\n<li>Saurabh Sadhwani with Sahasrar Capital enquired if the costs will stay flattish or going to increase for employee and travel expenses. Virender Jeet CEO said that it will be slightly more in 2Q23 and then declining in 3Q23 and 4Q23.<\/li>\n<\/ul>\n<ul>\n<li>Ankush Agrawal of Surge Capital asked that what kind of increase in the cost has been budgeted for FY23. Virender Jeet CEO clarified that overall the cost may increase in around 18-19%.<\/li>\n<\/ul>\n<ul>\n<li>Ankush Agrawal of Surge Capital also asked about the long term sustainable growth target. Virender Jeet CEO answered that it\u2019s difficult to predict. But looking at historical data, NEWGEN has been able to grow at 20% of growth with much lower cost to growth of around 13-15%. In future, with every 10% revenue growth, NEWGEN can manage between 6% or 7% of cost.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Newgen Software Technologies Limited (NEWGEN) Q1 FY23 Earnings Concall Management Update: NEWGEN said it is increasingly seeing growth in cloud subscription business which grew by 33%. Cloud and subscription revenue put together have now reached 38% of total revenue. This shift, the company said, is expected to lower the seasonality and lead [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"Newgen Software Technologies Limited Q1 FY23 Earnings Conference Call Insights #NEWGEN #Q1 #FY23","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[8986,8532],"class_list":["post-131560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-information-technology","tag-technology"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":138726,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":131560,"position":0},"title":"Newgen Software Technologies Limited Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"January 18, 2023","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q3 FY23 Earnings Concall Management Update: [00:03:37] NEWGEN said it is seeing increased adoption of subscription based business model, with the company\u2019s overall subscription revenue growing 37% YoY. [00:09:44] The company said that FY23 is marked by the continuing impact of elevated\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":126436,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q3-fy22-earnings-conference-call-summary\/","url_meta":{"origin":131560,"position":1},"title":"Newgen Software Technologies Limited Q3 FY22 Earnings Conference Call Summary","author":"Praveen","date":"January 19, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=lMWFAFWJzS0 Key highlights from Newgen Software Technologies Limited (NEWGEN) Q3 FY22 Earnings Concall Management Update: NEWGEN commented that it saw acceleration in business from existing customers and healthy operating margins. The company\u2019s subscription revenue continues to be the strongest component, seeing 20% growth YoY. Q&A Highlights: Analyst Dipesh Mehta asked\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128927,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":131560,"position":2},"title":"Newgen Software Technologies Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 5, 2022","format":false,"excerpt":"https:\/\/youtu.be\/KGCQVEOvYGQ Key highlights from Newgen Software Technologies Limited (NEWGEN) Q4 FY22 Earnings Concall Management Update: NEWGEN said that of the 530-odd customers, 38 customers witnessed billing of over INR5 crores in FY22 compared to 26 customers in FY21. Q&A Highlights: Sarang Sanil from RW Investment asked about the GSI percentage\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":144833,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":131560,"position":3},"title":"Newgen Software Technologies Limited Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"May 3, 2023","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q4 FY23 Earnings Concall Management Update: [00:02:14] NEWGEN said it crossed the total income milestone of INR1,000 crore in FY23. Q&A Highlights: [00:12:13] Baidik Sarkar from Unifi Capital asked how does the systemic banking crisis in the U.S. affect the company\u2019s pipeline\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":154984,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":131560,"position":4},"title":"Newgen Software Technologies Limited Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"October 17, 2023","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q2 FY24 Earnings Concall Revenue Growth Across Geographies Newgen witnessed robust 30% YoY revenue growth to INR293 crores in Q2 FY24. Strong growth seen in India region with 38% YoY growth; significant orders from public and private banks. EMEA region grew 34%\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":157776,"url":"https:\/\/alphastreet.com\/india\/newgen-software-technologies-limited-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":131560,"position":5},"title":"Newgen Software Technologies Limited Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 17, 2024","format":false,"excerpt":"Key highlights from Newgen Software Technologies Limited (NEWGEN) Q3 FY24 Earnings Concall Financial Performance Revenue at INR 324 crores, up 27% year-over-year. Profit after tax at INR 68 crores, up 45%. Healthy growth across geographies like India, EMEA, APAC, Americas. Annuity revenues comprise 59% of total at INR 191 crores.\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/131560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=131560"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/131560\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=131560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=131560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=131560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}