Chris Sakai: Okay. Can you talk about your international opportunity? What were your best performing regions?
Jeff Korn: You want to take that on it?
Ron Vincent: Sure. I mean, yes, I think a lot of the growth that’s coming out as a percentage is actually coming out of the Australia region. Obviously, we have numerous partners in the UK, but our biggest partner acquisition here over the last couple of quarters has been in Australia, as we talked about at the last earnings call.
Chris Sakai: Okay. And then I guess last for me, would you guys ever consider reinstituting the dividend?
Jeff Korn: That is very low on my list of things I would consider, but I’ll never say never.
Ron Vincent: Yes. Right now, we’re looking at reinvesting back into the business, Chris, and I mean, I think that you can see that over the last couple of quarters is that by reinvesting back into the business, you’re seeing a nice spike in the revenue growth and the bottom line. And so, that’s really our focus right now is to reinvest back in the business.
Jeff Korn: We simply have better uses of the money by investing and doing acquisitions.
Chris Sakai: Okay. Great. Well, thanks.
Operator: Our next questioner is Maj Soueidan with GeoInvesting.
Maj Soueidan: Hi Jeff, how are you doing? Hi, Doug. I’ve got a quick question and it’s kind of on the acquisition front, really. I’m just curious what you’re seeing out there in terms of pricing of some of maybe some candidates you might be looking for and what areas you might be looking to kind of acquire companies into. And I noticed that Ooma I recently made an acquisition here on October 23. They bought a company, I guess called 2600HZ. I don’t know much about the company, but it seemed they paid like five times revenue, which I thought was interesting compared to where you guys are trading at today. I was wondering if you could talk about what that – what they bought. I don’t know, is there any kind of comparison to what you guys do so we can – yes,
Jeff Korn: Well, Maj, let me answer your second question first. And there is a lot of a similarity in that they are a platform provider, as are we. And I obviously am very excited that a platform provider with falling revenues and not nearly as fast growing as we are, we are the fastest growing platform in the country, the third largest, which is feature rich and best of breed, so if a falling revenue platform provider can get four times, five revenue, it’s obviously exciting to me. Nonetheless, obviously we’re not sitting here licking our chops. We’re here doing our best job every day to go ahead, but if that’s a precursor of what our value would be, that would be very exciting. But at this point, we really don’t know if it’s one off or that’s what the value of the platform is.
But again, our job here is to continue to make this company best every day, continue to improve the platform, continue to improve the revenues, and continue to keep it the fastest growing. And that obviously will increase our value no matter what outside values are. And to your first, I’m sorry, go ahead, sir.
Maj Soueidan: I’m sorry. Go ahead. I just remembered, on your first conference call, you talked about – I think someone asked you what would not make you sleep at night, and you had said someone coming and acquiring you for a price you think you’re much less than you’re worth at, right? So, I thought that was interesting.
Jeff Korn: It is interesting and that until the stock reaches a level that we all think it believes to, that still does keep me up at night. But the 4.5 times revenue on the platform reward does – will probably let me get a little better sleep this coming quarter.
Doug Gaylor: Yes, I think if you saw that press release, Maj, it highlighted that 2600HZ – again, you’re correct. I think they acquired it at 4.7 or 4.8 times revenue, but they were doing – they’ve got about 500,000 or 600,000 licensees on their platform. We’ve got three and a half million plus licensees on our platform. So, as we look at being the third largest and fastest growing platform out there, as Jeff said it’s, it was interesting to see such a high valuation. We feel like we’re extremely undervalued and that hopefully maybe resets the bar a little bit out there in the industry, but we know that we’re going to continue growing and we’re really focused on our growth and not what’s going on out there in the space. But that’s a very good comp for us to be able to refer to.
When it comes to our acquisitions of licensees or other opportunities, the Allegiant acquisition was a great opportunity for us. We acquired that for less than one times revenue. And I think if you look at just an ongoing revenue stream without a technology play, that’s probably where the valuations still come in at. From a potential acquisition strategy, we feel like our technology suite is pretty strong right now. So, our acquisition strategy would really be focusing on gaining customers and revenue stream.
JeffKorn: With that said, Maj, valuation depends upon what we’re looking at, what technology they may have, and what the value of the customers are. So, it’s hard to give a straight answer, but obviously, we don’t want to pay more than market value, but we want to acquire good customers and good technology, and some of that and maybe worth a premium. But we don’t have anything on the table at the moment, so it’s hard for me to give you a serious answer as to what we would pay for something.
Maj Soueidan: Okay. And can I ask two more questions or should I go back in the queue?
Jeff Korn: Go ahead. No, go ahead.
Maj Soueidan: Yes. So, I think you’ve also talked about, both you and Doug in the past about how some of the bigger competitors like RingCentral, for example, have to change the way that they compete in terms of how they comp their sales reps, where they were paying them aggressive sales comps when we had a low rate environment. I mean, and then they levered up to do that, which – and there was a long ROI on some of that investment. And I’m wondering, are you seeing that change now where they can’t do that anymore? Because as it’s maybe harder to borrow money to do that and finance those kind of costs. So, are you seeing any of that benefit, any of that going on? Is it benefiting you guys at all?
