Nogin, Inc. (NASDAQ:NOGN) Q2 2023 Earnings Call Transcript

Shahriyar Rahmati: Yes. I think that it’s also — our approach in working with our clients is more of a partnership model versus sort of a vendor model. And while a lot of folks say that, I think our economic model screens it from the hill tops. And the way that we engage with prospects is one where we, first and foremost, aim to really understand their business and ensure that we’re building a relationship based on solving an underpinning. So we do that with extremely high transparency in collaboration with them. So it’s not an instance of forcing square pegs into round holes, it’s one where we’re making sure that for the benefit of both parties, what we’re discussing is both the right thing and the right time for both of us and their business.

I think the folks that we’ve brought on board has something to do with that as well in terms of the expertise and depth in e-commerce at scale across multiple different industries and the ability to meet our clients where they are and help articulate a credible road map in resonance, but is 80% a normal win rate, of course. But the multiple times through the year, we sort of — Jon and I joked about it internally, as long as we keep going to the table every single time with everything we’ve got to build value that’s sustainable for clients, we’ll see how that number progresses. And we’re not that fixated on it. were really just fixated on continued growth of the right targets that we’re meeting with and making sure that we’re creating attributable demonstrable value.

Jonathan Huberman: And let me add one more thing. And I think you know this, but I’m not sure all our listeners do. We really don’t have a direct competitor. There’s lots of different ways to do e-commerce, but most of them are do-it-yourself one form or another, whether it’s with a very large company like Salesforce or Delby or with Shopify. But with any of those, you need a team, you need an SI, you need third-party partners, you need to do it yourself, build it like a set of Legos one way or another. With us, it’s a different story. We come to the table with a platform, with the team and that enables folks who want that to go to market very quickly with that in typically less than 60 days and very efficiently. And so when — if that’s what they’re looking for, if they’re unhappy what they’ve done in the past or what they’re currently doing or like many of our B2B clients have never thought about going using a D2C platform, both to D2C and to B2B, which is typical, we bring them a solution that can be easily adopted with 0 CapEx, and that’s what gets them excited.

Jack Vander Aarde: Fantastic. I appreciate the color. If I can just sneak one more in more moderated. You mentioned that you’re going to — you’re working towards exiting the business where you’re the licensee that shows up in the product revenue and that’s moving — it’s moving parts. Just — but it’s going to impact the guide. Obviously, it’s got to be factored in some way. So can you just help me out, maybe when you look at the product revenue line, it did about $4.7 million in the second quarter. Are we expecting that in the third quarter to kind of be at that same level? Or is it going to wind down regardless of your plans to exit the business?

Jonathan Huberman: Shahriyar, do you want to comment on that?