Park City Group, Inc. (NASDAQ:PCYG) Q3 2022 Results Earnings Conference Call May 16, 2022 4:15 PM ET

Company Participants

Jeff Stanlis - FNK IR

Randy Fields - Chairman and CEO

John Merrill - Chief Financial Officer

Conference Call Participants

Tom Forte - D.A. Davidson

Operator

Greetings, and welcome to the Park City Group Fiscal Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeff Stanlis of FNK IR. Thank you, Mr. Stanlis. You may begin.

Jeff Stanlis

Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Park City Group's fiscal third quarter earnings call. Hosting the call today are Randy Fields, Park City Group's Chairman and CEO; and John Merrill, Park City Group's CFO.

Before we begin, I would like to remind everyone that the call could contain forward-looking statements about Park City Group within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not subject to historical facts. Such forward-looking statements are based upon current beliefs and expectations. Park City Group management are subject to risks and uncertainties, which could cause actual results to differ from those forward-looking statements. Such risks are fully discussed in the company's filings with the Securities and Exchange Commission. The information set forth herein should be considered in light of such risks. Park City Group does not assume any obligation to update information contained in this conference call. Shortly after the market closed today, the company issued a press release over viewing the financial results that we will discuss on today's call. Investors can visit the Investor Relations section of the company's website at parkcitygroup.com to access this press release.

With all that said, I would now like to turn the call over to John Merrill. John, the call is yours.

John Merrill

Thanks, Jeff, and good afternoon, everyone. Our transition to a SaaS company is complete. 100% of our revenue is recurring. Our strategy is very simple, grow recurring revenue, control costs through a combination of increased productivity and cost management, increased net income, accelerate EPS, buy back shares and drive cash.

Recurring revenue grew 7% year-over-year and 8% year-to-date. We ended the quarter with an exit rate of recurring revenue of $18.6 million. What does that mean? That means signed contracts in hand at March 31, 2022, that are billing monthly multiplied times 12, will generate $18.6 million of recurring revenue in the subsequent 12 months if we just stand still.