Sterling Check Corp. (NASDAQ:STER) Q3 2023 Earnings Call Transcript

In terms of individual deals, we never comment on individual wins or individual losses from competitors. It’s just a practice that we have. So I’m not going to be able to give specifics on that. What I will say is we did in Q3, get back to the 96% retention rate that we had had in the last year, and we have been running at 95%. So we were pleased to see that improvement. Again, just one point, that staying within our range. We expect to stay in our range next year. We see nothing that would change that. So hopefully, that gives you color on if there are any losses, which there always are, what their sizes are, we don’t talk on specific clients or specific deals.

Shlomo Rosenbaum: Thank you.

Operator: Our last question comes from Jason Celino from KeyBanc. Please go ahead.

Devin Au: Hi good morning Josh and Peter. This is actually Devin on for Jason today. Just one question from us and I also want to ask about your pipeline. I know you mentioned it’s still really strong, expecting deals to close. But just want to ask, just given macro and companies kind of tightening their budget further, have you seen more companies may be more inclined to stay with their current providers that might have resulted in kind of no action from some of your opportunities in the pipeline lately?

Joshua Peirez: Thanks for the question. No. I think we’re seeing, if anything, more RFPs, as we mentioned last call, that’s why the pipeline is larger. We’re continuing to see really good opportunities in all markets and all verticals around the world. So we haven’t seen that trend. If anything, I think it would be the opposite, that they’re more likely to want to move if that were true, particularly if they’re unhappy with their current provider. I think that our view overall is that those trends tend to benefit us and the other big players because when people are looking to move, they’re going to see what we’re able to provide and continue that consolidation trend around the larger players in the market who can offer better services, more services. And of course, we like our chances against the other guys as well.

Devin Au: Great, thank you.

Operator: We have no further questions on the call. So I’ll hand back to the Sterling team to wrap up.

Joshua Peirez: Thank you all for joining us today and we look forward to talking to you soon. Thank you.

Operator: This concludes today’s conference. Thank you all for joining. You may now disconnect.