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

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Hardeep Gulati: Yes. No, we actually €“ one of the opportunities we are looking at really is the international expansion, and having more not just Middle East as one of the things, but actually expanding similarly more international capabilities across other geographies where we are similarly seeing some inbounds and good demand. And we are definitely €“ we have a very strong sales team. I always say that we have the best sales team, not just in terms of coverage, but actually in terms of the partnership because we have expertise around different areas. And being able to really leverage some of the experience of our new CRO, which €“ who came from Oracle and has built global FCM brand for Oracle, we’re really excited about how that would help us translate this into a global brand.

Saket Kalia: Very helpful. Thanks guys.

Hardeep Gulati: Thank you.

Operator: The next question is from Koji Ikeda with BofA Securities. Please go ahead.

Koji Ikeda: Hey, Hardeep, hey, Eric. Eric, congrats on the new promotion here for President, congratulations on that. I wanted to ask you guys a question, thinking about the low double-digit organic growth comment that you had earlier. And in context to the product wheel that you guys have, think about the unified classroom, administration, talent, communities and home. Could you help us maybe understand as we think about the growth algorithm over the next year to 1.5 years of which one of these five parts of this wheel are you most excited about or maybe could contribute the most to the growth algorithm over the next 12 months?

Hardeep Gulati: Sure. Koji, let me take that and if Eric has €“ wants to add something, I’ll ask him to jump in. Koji, if you think of where the biggest part of the business of our student solution. And while we’re €“ in the pandemic, we have talked about that we were recording high single-digit growth, we’re actually seeing it to be almost double digit even post-pandemic with transformation opportunity with a very large, not just deals like Stride, but territory or country level options as well that exists out there. So that gives us a very strong confidence. We kind of shared bringing one of the fourth large district in Canada here this year with Peel. So these are momentum, which makes us very confident about the entire student solution.

I think there’s a lot of antiquated systems out there. And as districts have gone through the COVID, they know that they need an upgrade. They are dealing with a lot of data security aspects and integration issues as well. Districts who have integrated systems, their insurances are going higher because if they are not able to provide the right secure and solutions, and these districts are making a priority to actually upgrade their back-end systems. So we are kind of in a very strong position to leverage that. Our classroom continues to be double-digit growth. It had seen good growth over the COVID and pre-COVID and even post-COVID with all these different components, as you mentioned, it’s just not LMS, it’s assessment, it’s behavior, it’s special ed, it’s Naviance brought in so that we are excited about that combination.

Nobody else offers that breadth. And then our talent management, definitely post-COVID there has been a big demand on that. We’ve seen some state-level opportunities we shared year-to-date. We have been growing double digit on that as well. So those are good signs that we think we’re going to continue to partner with these districts. Insight is one of the biggest growth areas. That’s where we are seeing huge growth, and we expect that to really continue, especially with the innovations we are bringing in. I think we are in a very unique position. There’s nobody else who can really match with providing such a comprehensive analytics to not just districts, but even state level. So we are in a very fortunate position to be partnering with districts on that.

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