Dale Foster: That’s right. That’s the good news. It’s all on us. I mean, we can make those choices. So, yeah, we’ll take all the blame of that as well. But we feel that we have enough feelers out there where we can actually know a little better than putting your finger in the wind and saying, hey, we’re going to go after this market, or the vendors are approaching us and saying, hey, can you guys help us in this situation because we’ve had budget cuts and we can actually fund you through the channel via margin. And we’re like, yeah, we’ll double down on that. We’ve built a team with Delinea and they’ve just been a great partner for us. And you’ll see those numbers continue to grow with Delinea.
Howard Root: Okay, great. Well, congrats on the quarter. The 16% revenue growth, great overall year-over-year, and challenges come up, but you guys are addressing it. Thanks, again.
Dale Foster: Thanks, Howard.
Operator: Our next question comes from Bill Dezellem from Tieton Capital. Please proceed.
Bill Dezellem: Thank you. A couple of questions. First of all, allow me to circle back to your February 20 press release referencing Global Technologies. That release seemed a little bit different than your typical, typical release. Would you please talk about that relationship and what it means or does not mean?
Dale Foster: Yeah. Thanks, Bill. So Global Technologies, they’re diverse supply. And we’re getting asked more and more from our customer base and some of our vendors that we will have a partnership or a division that does for a diverse and secure supply chain. So we’ve done this. We’ve known the founders of Global Technology. They’re actually also – vendors. So it’s early stages, but we have big customers that need that. We’re looking at a government side of that as well, if you’re familiar with the 8(a) [ph] program. So my background is the fed space, so it’s the government contracts are key to that. So nothing that I can report right now that, hey, we’ve had all these big wins, but it’s definitely another component of Climb that we need to have as a diverse supplier. And that’s why we built – we put that relationship together.
Bill Dezellem: And so you broke up in part of that answer. But essentially this isn’t a joint venture, it’s not an acquisition. But you’re working together specifically for the federal face space. Is that the essence?
Dale Foster: No, the federal peace will come. Right now, it’s really in our larger partners as we have a diverse supply chain. But yeah, it’s early on those, but I’m saying we’re going to take advantage of the federal side of that as well. But it still can be state and local. It’s with our customer base and our vendors that are looking for a diversity partner.
Bill Dezellem: Great. Thank you. And then relative to your Line Card, I know in this type of a business you’ve experienced it before, and as have other firms. You just end up with a vendor or a few vendors that take off in the marketplace and you end up being a big beneficiary of their success. So the question is, how many vendors on your Line Card today do you see that you think could explode in a good way, revenues just jumping in the next year or two?
Dale Foster: Yeah. If I opened it up to my management team, we would argue over those top five or six. And here’s what we do. Just like when we pick a vendor, we bet on the jockeys that are running that vendor with what their go to market is for the channel. The same thing as far as them expanding, because we’ve seen what they’ve done in the past. But then there’s a lot of outside factors. If you look at the majority of our vendors are not probably cash flow positive, right. They’re out of the start of phase. They’re still taking in dollars to grow out their channel teams. So it depends on where we get them in their life cycle. I would say right now, if it was Dale Foster, I’m going to put my money on three vendors. I would pick three of our vendors.
It would take off on that side and one of my sales leaders would pick three other ones, probably. So we do have a pretty good robust pipeline where we think, hey, we’re going to see some real expansion. The quickest thing in distribution is, like I said earlier, is like a share shift piece of it. And we’re seeing that happen and it’s just good when these bigger behemoth distributors just move in a little different direction or it gets messy, all the advantages come to us where they need somebody that’s much more of a targeted team.
Bill Dezellem: Great. Thank you. Appreciate the help.
Dale Foster: Thanks, Bill.
Operator: Our next question comes from Vincent Colicchio from Barrington Research. Please proceed.
Vincent Colicchio: Yeah, one more for me. The share gain you’re seeing with certain software vendors from distributors, large distributors, are they largely quite small emerging companies, or are they, some of them decent size?
Dale Foster: I guess it depends on what you mean by that, Vince. I mean decent size. You know, we look at a vendor, if they can get to $100 million, that would be a mid to large vendor for us. If you look at Sophos, $800 million, SolarWinds, $400 mil or $500 million. So some sizable vendors on that side. But that’s what I would consider is some of the larger ones. And we’re seeing more of those. Here’s what happens in our market typically, and that is as these customers, or, I’m sorry, vendors get larger, they look for more efficient ways to get to the market. And then the key word is how do they scale it? Right? How do they scale their business? We’re talking to one right now that says, hey, we need to scale and we can’t do it by adding another 80 sales reps.
