PowerSchool Holdings, Inc. (NYSE:PWSC) Q3 2022 Earnings Call Transcript

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Hardeep Gulati: Yes, we actually still are €“ when you look at our win rates, they have been pretty consistent at par with the competitors. Especially, we have one large competitor. We are kind of very similar to both in terms of win rate as well as market share. When you look at in terms of number of students. Take example, some of our large deployments at LA and Miami, that’s million student between those two itself. So when you factor this number of students, we are at Baltimore City when I shared is actually a great testament of a large district going through an RFP process and actually selecting us. They don’t even use over asides, but they do use platform components like Navion and Talent, which actually came into important part of their decision making.

So we really continue to see the fact that not only our CIS, but our market share in other areas like talent, like professional learning, like classroom broadly is going to further help our competitive win rates in this. But right now we are continue to win at par with the market. As we’ve shared in the past, during the COVID, we almost saw 4 million to 5 million students almost getting per year. Now we are kind of back to what we have seen pre COVID levels about 1 million to 2 million students is what we are expecting, we are at par with that.

Unidentified Analyst: Great, thank you. And then just as a follow-up, what are customers telling you are the biggest gaps in their portfolio? And how can you share with us those discussions are informing your organic product roadmap and your M&A priorities?

Hardeep Gulati: A lot of the stuff, what we are seeing it has been the things which we have addressed with our products. I think if you’ll see our, both of our checking acquisitions around curriculum on messaging and attendance intervention around social emotional have been directly based on the feedback from our customers. Our some of the innovation on MTSS, which helps them manage interventions across all these different areas. Our Connected Intelligence, which let’s them not just connect their data sitting in PowerSchool, but bring data from an external system including partnering with their communities to bring almost a full longitudinal view. We’re actually seeing very strong demand on that, and that’s directly based on what we are seeing market.

There is a broader, again, more adoption of platform rather than looking at individual products. And that’s why you see a tons of product innovation, and what you’re seeing a demand is across not just one product, but actually looking at how to platform so they are not having to connect all this data, and they’re not having to deal with data security issues around that. And we’re €“ that’s where our innovations are very differentiated.

Unidentified Analyst: Thank you. Congrats on the quarter.

Operator: The next question is from Matt Hedberg with RBC Capital Markets. Please go ahead.

Matt Hedberg: Great. Thanks for taking my questions and congrats, Eric as well from us, well-deserved. Eric, I know you don’t guide to ARR, but I know you provided a little bit of context historically. The last few years, you’ve added, I think, maybe $10 million to $15 million of net ARR into Q4. Is there anything different about this year’s seasonality wise from an ARR perspective?

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