Release Date: April 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- accesso Technology Group PLC (LOQPF, Financial) reported a revenue of $152.3 million for 2024, slightly above the upper end of their guidance range.
- The company achieved a cash EBITDA margin of 15%, surpassing initial expectations.
- accesso Technology Group PLC (LOQPF) has a strong global presence, operating in 33 countries with over 1,200 customers.
- The company is actively exploring new growth opportunities, including expanding their share of wallet through cross-selling and upselling strategies.
- accesso Technology Group PLC (LOQPF) is investing in new technologies, including AI and composable commerce, to enhance product offerings and operational efficiency.
Negative Points
- The company faces softer macroeconomic conditions across all geographies, impacting growth expectations.
- Visitor attendance was generally flat in 2024, with some operators experiencing nominal gains.
- The ski sector experienced less than optimal conditions, affecting transactional volume and operator buying decisions.
- accesso Technology Group PLC (LOQPF) anticipates challenges in exceeding the 5.3% growth achieved in 2024 due to market uncertainties.
- The legal process in the Middle East is slow, affecting the timeline for contract finalizations.
Q & A Highlights
Q: Can you provide an update on the relationship with Cedar Fair and Six Flags, including any discussions on renewals or revenue opportunities?
A: Steve Brown, CEO: We have a strong relationship with both Cedar Fair and Six Flags, being a key provider for them. While I can't elaborate on specifics due to sensitivity, I can say that we are in a strong position with these clients, and if there were any concerns, we would have flagged them in our results statement.
Q: Regarding the Middle East clients, how should we think about the potential total contract value and its impact over time?
A: Steve Brown, CEO: The Middle East contracts are primarily Horizon product sales with license and maintenance agreements. While I can't disclose the total contract value, we expect around $2 million in revenue this year, mainly from implementation and consultation work. The recurring revenue will come from maintenance and support.
Q: What is the average annual sales price (ASP) for accesso Freedom, and are there any significant contracts in the pipeline?
A: Matthew Boyle, CFO: The ASP for accesso Freedom ranges from $25,000 to $75,000 annually, depending on the size and scale of the resort. We have two significant contracts in the pipeline, each expected to be around $200,000 annually, indicating that not all contracts will be small.
Q: Can you elaborate on the seasonality of your business and how it affects revenue?
A: Matthew Boyle, CFO: Our business is heavily weighted towards holiday periods, with significant revenue coming in during Easter, national holidays in the US, and the summer months. This seasonality is driven by our major customers in theme parks and attractions.
Q: How are you managing costs, and what are the key areas of focus for cost control?
A: Steve Brown, CEO: We focus on labor efficiency and technology costs. We're exploring AI tools to enhance developer productivity and reduce technical debt. Additionally, we're optimizing server costs and reallocating resources to support commercial efforts, ensuring every dollar spent is leveraged effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
