CalAmp Corp. (NASDAQ:CAMP) Q1 2023 Earnings Conference Call June 23, 2022 5:00 PM ET

Company Participants

Joel Achramowicz - Managing Director, The Shelton Group, IR

Jeff Gardner - President and CEO

Kurt Binder - CFO

Conference Call Participants

Mike Walkley - Canaccord Genuity

George Notter - Jefferies

Mike Latimore - Northland Capital Markets

Scott Searle - ROTH Capital

Jerry Revich - Goldman Sachs

Orin Hirschman - AIGH Investment Partners

Operator

Welcome to CalAmp’s First Quarter 2023 Financial Results Conference Call. As a reminder, this call is being recorded.

I would now like to introduce your host of today’s conference call, Joel Achramowicz, Managing Director of Shelton Group, CalAmp’s Investor Relations Firm. Joel, you may begin.

Joel Achramowicz

Good afternoon and welcome to CalAmp’s fiscal first quarter 2023 financial results conference call. I am Joel Achramowicz, Managing Director of Shelton Group, CalAmp’s Investor Relations firm. With us today are CalAmp’s President and Chief Executive Officer, Jeff Gardner; and Chief Financial Officer, Kurt Binder.

Before we begin, I’d like to remind you that this call may contain forward-looking statements. While these forward-looking statements reflect CalAmp’s best current judgment, they are subject to risks and uncertainties that could cause actual results to differ materially from those implied by these forward-looking projections.

These risk factors are discussed in our periodic SEC filings and in the earnings release issued today, which are available on our website. We undertake no obligation to revise or update any forward-looking statements to reflect future events or circumstances.

Now, Jeff will begin today’s call with a review of the company’s operational highlights and then Kurt will provide a more detailed review of the financial results followed by a question-and-answer session.

With that, it’s my great pleasure to turn the call over to CalAmp’s President and CEO, Jeff Gardner. Jeff, please go ahead.

Jeff Gardner

Thank you, Joel, and thanks to all of you for joining us on the call today. We continue to make progress on converting customers to recurring subscription contracts. Our first quarter software and subscription services revenue grew 13% year-over-year to $39.6 million, representing approximately 61% of the total revenue for the first quarter. This represents the second consecutive quarter our software and subscription services revenue exceeded 60% of total revenue.

During the quarter, we converted another 10% of eligible customers accumulatively representing over one-third of our total base, with the goal of completing the rest of the conversions by the end of the current fiscal year. In the quarter, we secured new customers such as Brigham Young University and Grupo Salinas, the second largest business group in Mexico, among others.