Cognex Corporation (NASDAQ:CGNX) Q1 2024 Earnings Call Transcript

Jairam Nathan: Okay, great. Finally, [indiscernible] this competitor, they kind of equate revenue growth to employees, employee headcount increases, and just wanted to kind of–I understand if I look at sales per employee or marketing per employee for you guys for the Emerging Customer, it would not be as high as it is currently, just because of the nature of large customers in your current mix. But when you look at–and I understand it’s early days, but how is sales per employee on the Emerging Customer tracking, or how do you expect it to track compared to the current average? Is that one way you get to $50 million? I’m just trying to understand what’s the potential here.

Robert Willett: Yes, for competitive reasons, that’s not necessarily data that we share at this point, but certainly, yes, Emerging Customers, we have much more modest expectations for them out of the gate. We expect to see good improvement, and obviously our emerging customer initiative, we hope will create sales people which will go on and manage larger accounts in future, so a nice feeding ground for that. But certainly, it’s going to dilute sales per salesperson in the initial years.

Jairam Nathan: Okay, do you think it will be high? If I kind of look at your best Emerging Customer employee or salesperson, can you give us an idea of how their tracking was, the average or–

Nathan McCurren: Yes Jairam, this initiative will naturally ramp over time, and so we’ll expect to see more revenue as we go on; but I think we’re not going to give an actual number on what we expect for each of those heads versus a more tenured sales employee.

Jairam Nathan: Okay, thank you.

Operator: Thank you, and we have reached the end of the question and answer session. I’ll now turn the call back over to Rob Willett for closing comments.

Robert Willett: Well, thank you for joining us this morning. Thank you for your interesting questions. We’ve enjoyed talking with you, and we look forward to speaking with you again on next quarter’s call.

Operator: This does conclude today’s conference, and you may disconnect your lines at this time. Thank you for your participation.