PowerSchool Holdings, Inc. (NYSE:PWSC) Q3 2022 Earnings Call Transcript

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So you can see the momentum is pretty strong if they were install base with each of them. There’s still a small contribution to our overall numbers, but we do expect them to start becoming more material down the road in the next few years.

Eric Shander: Yes, and Stephen and Eric, I would just add on since you asked financially, while we don’t provide any specifics as we’ve spoken to a lot of you, we do have pretty aggressive business cases that we put together in terms of what we want out of these acquisitions. And I can tell you every single one that we’ve done the share while smaller, and as Hardeep mentioned, the contribution is a little bit less. Every single one of them is well ahead of the financial business cases that we originally put together and we really do look for accretion in a pretty short period of time. So we couldn’t be more pleased with the financial benefits we see this year. And then obviously, as we really get them to be integrated more into the platform some of the benefits we’ll see into next year and beyond.

Stephen Sheldon: Got it. Thanks for all the color and congrats on the strong results.

Hardeep Gulati: Thank you.

Eric Shander: Thanks, Stephen.

Operator: The next question is from Brent Thill with Jefferies. Please go ahead.

Unidentified Analyst: Hey guys. This is David on for Brent. Thanks so much for taking the questions. Maybe to kick off, on the issues facing K-12 schools, obviously, the big ones being teacher shortages and learning loss. Just curious, are you seeing customers flock more to your products that help to address some of these issues? And maybe are they driving out size growth, you’re seeing higher adoption there, maybe as like adoption in LMS starts to fade, just any color there would be helpful?

Hardeep Gulati: Yes, sure. David, I think we kind of have been talking about last few quarters. One of our best selling product has been our Unified Insights product, primarily to your point about the learning loss, one of the biggest challenges most of the districts are facing is how do we even know where is the learning loss, how much of the learning loss, which strategies and interventions would actually work? In fact, we talked about launching a new innovation of multitier system of support MTSS. We are already seeing not only Unified Insights growth throughout the year, we’re actually now seeing strong adoption of our MTSS. We have one state deals in this year. We have continued to see extremely well including large districts like Plano, which bought our entire platform, including Unified Insights, Corpus Christi is another great example of these districts.

We’re actually adopting these Unified Insights to help them address these learning loss. And I already mentioned about the talent as well. I think when you look at almost working with the districts to help address million jobs of teacher and not just on the recruiting new teachers, but managing almost 750,000 plus substitute teacher over the quarter, we are kind of right in the middle of helping these districts deal with all these challenges and it’s actually creating more level of trust and partnership with these districts. So they’re adopting more of our platform components, including some of our add-ons we talked about.

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