OMNIQ Corp. (NASDAQ:OMQS) Q4 2022 Earnings Call Transcript

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Unidentified Analyst: Okay. So you’ve got two others that want to start testing this year?

Shai Lustgarten: Yes.

Unidentified Analyst: Okay, great. All right. Well, listen, thank you very much. I think all that’s certainly helpful for me.

Shai Lustgarten: Thank you, sir. I appreciate your support.

Operator: With the interest of time, our final question will be coming from Curt Stauffer, Seven Summit Capital.

Curt Stauffer: Hi, Shai. This is Curt Stauffer. How are you?

Shai Lustgarten: Hello. How are you?

Curt Stauffer: Good. Congratulations on your growth. And I just have a question related to your sales effort in terms of sales reps that are currently employed and what growth you see in your sales rep numbers this year and then going into 2024?

Shai Lustgarten: Thank you. Yes, like we discussed also before, our focus is to, not – I wouldn’t say, in large, our sales force, our sales force today really is sufficient to what we need. If we need to grow it or reduce it, nothing is significant there. It sounds like we need to double or increase it by a third to reach our objectives. Now we’re very comfortable with what – with the sales force that we have today. The focus though is on growing the sales channel and making it a more larger one in each vector, in each market that we penetrated, say cities, retail, restaurants, fast food, et cetera, et cetera. So that is our focus of schools, universities, all of that. That is our focus to really establish a good and firm and stable sales channel that is trained to resell our equipment, our products in each of the sectors that we’ve penetrated.

Curt Stauffer: Okay. So you’re saying you’re going to — you’re relying resellers as opposed to direct sales force.

Shai Lustgarten: We do rely on our, of course, existing sales force, but in order to achieve the scalability and potential in the market, there is no way we can reach 16,000 – more than 16,000 small and medium cities by ourselves. So we are getting today the revenue and the amazing potential we have comes from our direct sales and that’s the opportunity here because we’re doing it ourselves and it’s doing well. So imagine when we have a firm sales channel, the growth of these companies yet to come.

Curt Stauffer: Is your sales force that’s in place now? How is it structured? Is it regional? Is it regional by geography or is it by business line? Or is it by customer type?

Shai Lustgarten: First period is by business line. Then within the business line, it tries to be geographically. But in many — in some of the cases, in some of the business lines, it is account based and the relationships we have for so long with different accounts. For example, in the supply chain market where we have direct and we don’t need to use resellers there. We have direct relationships with all of our customers there, all of the sales is done directly and each of these customers, Fortune 100, 500 customers we have there can double the company switching into the AI products. So these are direct sales. For example, if we go into safe cities, you’re talking about today getting the sales. What happens is that we’re making the sales directly and only few cases came from reseller, but most of the sales will come from the reseller channel going forward.

Because like I said, there is no way we can do this ourselves and it is geographically divided between the salespeople. So it depends on the business line.

Curt Stauffer: All right. Thank you very much.

Shai Lustgarten: I appreciate it. Thank you.

Operator: We have reached the end of the question-and-answer session. And I will now turn the call over to Shai for closing remarks.

Shai Lustgarten: So again, it was a pleasure talking to you all, and thank you for your continued support and looking forward talking to you soon on our next conference call. Thank you, everyone.

Operator: This concludes today’s conference and you may disconnect your lines at this time. Thank you for your cooperation.

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