Operator: [Operator Instructions] Our next question comes from the line of George Sutton with Craig-Hallum.
George Sutton: Bill, you mentioned the opportunity to double your TAM through Asia. Can you talk about what the selling strategy is into that market? Are you purely going direct? Are you going through partners? Can you just give us a sense of how you attack that?
Bill Angrick: Thank you for the question. We’re leveraging, Gary — excuse me, Craig, the — George, excuse me, the current infrastructure that we have in Asia. We have been in China for over a decade serving CAG relationships. These are multinational companies that need asset management and sales support. We have a very strong leader in Asia, ex-McKinsey consultant has been with us for over now almost 15 years. So what we did is we took advantage of our physical presence there, and added a regional sales organization to extend the Machinio platform into those markets, and we sell direct. Now we sell very efficiently through a variety of sort of digital inside sales practices, George, and that allows us to hit the ground running quickly and ensure profitable growth.
The reality is that there is a big interest in being able to move equipment — used equipment outside of the region, and that’s tapping into Machinio’s presence throughout the U.S., North America, Europe, a lot of buyers. And we’re seeing good adoption of the solution, albeit it’s a small base that we’re starting with. But we had some revenue already on Machinio platform with subscribers before we opened up a sales presence there. And now we’re just redoubling the value proposition and getting that in front of more interesting relationships. And these are small — these are not small companies. And an example I gave, XCMG, is a pretty large player. And again, it feeds that ecosystem, more supply equals more buying activity and people now know that we’re open for business in Mainland China and Asia, and there’s more product availability.
So we expect that organic growth to accelerate over time.
George Sutton: So I wondered if Jorge could just walk through the CAG, any sort of quantification of the CAG deals that slipped in the quarter? What’s closed thus far in the Q2 quarter and how much of that do you ultimately expect to get in Q2?
Jorge Celaya: So George, I’ll say is what I said in the remarks that most of the deals there was — I can tell you there was probably a half dozen and most of them have been transacted in January. We expect most of them to be in this next quarter, maybe 1 or 1.5 partially will slip into the next quarter. But we expect CAG to have a very strong March quarter, right, the one coming up, not only because we had already planned that it was going to have a pretty solid quarter, but then you compound that with the catch-up on these. And really, they were all December transactions. But that CAG from time to time has these slippages, especially when they’re international more complex transactions.
George Sutton: Well, again, a half dozen transactions equating to about how much in GMV? Or is there a — you called it out as one of the reasons for some of the challenges in the first quarter. I’m just curious how much of that…
Jorge Celaya: I’m not going to do transaction quantification, George. But what I’m calling out is on the shortfall, I guess, to be, if you want to call it that, on those two particular segments from what we expected, at least, it was those — delays in those transactions and then as I said, some of the product mix market issues in retail.
Bill Angrick: Remember, this is all happening in a public marketplace too. So one can see what’s being listed and sold, real time in the marketplace. And we’ve had some really good results in the current quarter, George, that are illustrating the types of transactions that have rolled over. But I think it’s fair to say that absent some delays, we wouldn’t have been at the low end of the range. It would have been near the high end of the range collectively. So those are things that we continue to manage. And again, we’re in the long game. I mean we’re about building the highest recovery, the most liquid buyer base, making sure that we’re covering every industry where there’s growth opportunities. And I know in your world, it’s very important to have a precise model quarter-to-quarter.
In our world, we’re really looking to deliver the best value to clients on a continuous basis. And that’s our goal. That’s how we invest. That’s how we think about the growth strategy. And I think the combination of some of the modernization that we’ve done with GovDeals with the opportunity to integrate, a lot of the tools that everyone in every industry is utilizing, sort of AI tools and machine-driven — one-to-one marketing, that’s all helping us win in the marketplace, and we’re excited about the business pipeline and feel like we’ve got the right services in a very differentiated marketplace experience to win and convert more opportunities in retail and the capital assets segment and we talked about Machinio. So I think we’re well positioned to what the needs are currently in the market, and that’s why we’re going to continue to grow.
George Sutton: Got you. Bill, this was almost the first conference call in America that did not include the term AI, but you did slip it in. So congratulations. That’s it for me.
Bill Angrick: That was an unintended interruption of the streak.
Operator: Thank you for your questions. This concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.
