Kaleyra, Inc. (NYSE:KLR) Q4 2022 Earnings Call Transcript

Dario Calogero: Well, I’ll take this one. In general, large accounts, all of them are going through a vendor consolidation process because since the messaging space is extremely fragmented on different geographies, in last year, you had maybe 15 to 25 vendors to sell the same service, but we show the geographies, if you are a global service provider like most of the U.S. large companies, especially digital bank or the software established one. Single sourcing is typically in some specific industries, especially in banking and financial services because it is a very significant piece of integration of software, middleware. So switching vendor implies also to run a very significant migration project that is somehow cumbersome.

But I would say, as long as the sector, the market is getting into the maturity phase, there’s more rationalization of the partnership entangled with. So many customers that were using 15 or 20 providers in the last years. Now they are consolidating on 3 to 5. And we obviously ran to be one of these 3 to 5 because we tend to provide high-quality services, especially towards the route where we have zero one-off interconnection and we are best of breed in terms of quality.

Operator: At this time, this concludes our question-and-answer session. I’d now like to turn the call back over to Mr. Calogero for his closing remarks.

Dario Calogero: So thank you very much, operator. Thank you, you all for joining us on today’s call. As always, we would like to thank our extensive worldwide network of partners and investors as well as our employees for their continued support. Operator?

Operator: I would like to remind everyone that a recording of today’s call will be available for replay via a link available in the Investors section of the company’s website. Thank you for joining us today for Kaleyra’s Fourth Quarter and Full Year 2022 Earnings Conference Call. You may now disconnect.