PowerSchool Holdings, Inc. (NYSE:PWSC) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET
Company Participants
Shane Harrison – Senior Vice President-Investor Relations
Hardeep Gulati – Chief Executive Officer
Eric Shander – Chief Financial Officer
Conference Call Participants
Stephen Sheldon – William Blair
Brian Peterson – Raymond James
Fred Havemeyer – Macquarie
Saket Kalia – Barclays
Brent Thill – Jefferies
Matt Hedberg – RBC Capital Markets
Rich Hilliker – Credit Suisse
Brett Knoblauch – Cantor Fitzgerald
Operator
Good afternoon, ladies and gentlemen, and welcome to the PowerSchool First Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.
I would now like to turn the call over to Shane Harrison, Senior Vice President, Investor Relations. Please go ahead.
Shane Harrison
Thank you, operator. Welcome, everyone, to PowerSchool’s earnings conference call for the first quarter ended March 31, 2023. I wanted to first let you know that we posted a slide deck to the Investor Relations section of our website that accompanies our remarks here. On the call today, we have PowerSchool’s CEO, Hardeep Gulati; and CFO, Eric Shander.
Before getting started, I’d like to emphasize that this call, including the Q&A portion, will include statements related to the expected future results of our company, which are therefore forward-looking statements. Our actual results may differ materially from our projections due to a number of risks and uncertainties. The risks and uncertainties that forward-looking statements are subject to are described in our earnings release and other SEC filings.
Today’s remarks will also include references to non-GAAP financial measures. Additional information, including definitions and reconciliations between non-GAAP financial information to the GAAP financial information is provided in the corresponding press release and results presentation, which are both posted on PowerSchool’s investor website at investors.powerschool.com.
A replay of this call will also be posted to the same website.
Let me now turn the call over to Hardeep.
Hardeep Gulati
Thank you, Shane, and thank you, everyone, for joining us today. Our 2023 is off to a great start. In Q1, we continued to grow our ARR 10% year-over-year and significantly expanded our adjusted EBITDA margins. We also won a record amount of new logo bookings, saw continued large deal demand from districts and state level opportunities, and made progress on our international expansion.
Q1 results are summarized on Slide 4. First quarter revenue reached $159 million with subscription and support revenue growing 9% to $141 million. Our adjusted EBITDA grew 16% to $49 million, representing a 31% margin, an expansion of nearly three percentage points year-over-year. Net revenue retention remained strong at 109.1%, increasing 240 basis points year-over-year, helping drive ARR to $612 million.