BGSF, Inc. (NYSE:BGSF) Q2 2023 Earnings Call Transcript

So it allows a bigger focus on defining who they go to see, when they go to see, we’re able to take revenue and tie it to that system to be able to tell if somebody — if we’ve spent a lot of revenue in this customer, in this pocket, it shows us white space, so we can go move into those areas where we maybe historically haven’t gone in the past. So super excited about that. That launched last week, went live last week. And I know that Kelly and Jen Roeder [ph], who has kind of heads up that project, have done a really good job in making sure that we are positioned to get the most out of that. So that’s an exciting move for us in property management.

Jeff Martin: Great. And then I know right after you purchased Arroyo, you had significant inbound interest in offshoring. Are you seeing some contracts come to fruition there? Maybe give us a sense of how the offshoring initiative is trending with clients.

Beth Garvey : And we are seeing activity in the offshoring side of it. And customers here in the U.S. are they’re starting out slow. So they’re giving us a shot saying, hey, give us two or three people to see what your capabilities are. But it’s kind of your foot in the door. And once we get people on the ground and in those departments, we definitely feel that that’s going to be an expansion in the departments that we have for Arroyo. It’s been super exciting. And Eric Peters and the team have really gone through and made sure that they are telling the story and leading with managed services and the capabilities of the Arroyo team.

Jeff Martin: Great. Thanks for the time.

Beth Garvey : Thanks, Jeff.

Operator: [Operator Instructions] Next question comes from Howard Halpern, Taglich Brothers. Howard, please go ahead.

Howard Halpern : Congratulations. Great quarter. In terms of the two acquisitions, how has that helped in terms of the cross-selling and building that type of pipeline for future projects?

Beth Garvey: Well, Howard, as you know, every acquisition that we’ve ever made has been a strategic acquisition as in, is there a capability that we need? Is there something that a customer has asked us for? And in both of the acquisitions, it was basically for those two things. And the managed services side of the Horn Solutions acquisition, as well as the abilities of our Colombia and India operations, has really given the sales team for professional, a really strong effort to be able to go out to the market and sell solutions across the board. And I think that that has excited the team. There’s a lot of motivation and a lot of energy. We’ve got a lot of different platforms that we’ve been landing pages that the marketing team has built that has allowed the sales team to really get out to market quickly.

So we’re just in the process, especially with the Arroyo acquisition, of building these things out. But every week we’re finding some new capability that that team has the ability to do and its super exciting to watch it unfold.

Howard Halpern : Okay. And within the real estate segment, have some of the wage pressures abated? Have you seen that occur?

Beth Garvey : I think on both segments we are not seeing the wage inflation that we saw in last year. I think that’s all kind of lined out and it is what it is right now. So we’re not seeing it be crazy like it was last year.

Howard Halpern : Okay. And then just a couple more in with the transaction keys. Are we going to see any more transaction keys going forward or did this round out from the acquisitions this quarter?