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

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Unidentified Analyst: Got it. That’s super helpful. Thanks for that. And maybe just the quick follow-up on international. I know you guys provided a little color in the opening remarks and sounds like things are going well and maybe expanding that a little bit further, I guess, high level, your conviction on what international can be for you guys, has that €“ has it your conviction increased as you’ve kind of put some of the processes in place? And what is a good timeline to think about when international can start to become a material driver of revenue? Thanks.

Hardeep Gulati: Yes. We are already a market leader when it comes to international or schools or American education school across the globe, right? We have presence in 90 countries, pretty much every major American education school across the globe uses us. What we are seeing, especially over the last few years with bringing Schoology and other platforms, we even have country level deployments like country like Uruguay or Philippines, we have 300,000, 400,000 students as well. One of the key motions, what we have been is let’s bring the entire platform to international. And we started with actually boots on ground in Middle East, and what we are seeing is lot of not just international or private schools, we are seeing government schools, charter schools in these countries actually now asking for us not just one product, but they’re actually buying entire platform.

What is proving to us is that even internationally, there is nobody else who’s providing this comprehensive platform. And the need by these private and local schools is equally strong, especially coming out of COVID that these different countries are prioritizing the requirement to actually move to a platform. So we are actually seeing fairly good demand, I think, to follow up as we do think that over the next few years, international is going to become mature part of our growth. And we are definitely seeing some very good early signs, especially because there is no strong competition we are seeing either at the private schools or public schools or even at country level deployment. So we are really excited about what it’s going to bring to our growth over the next few years.

Eric Shander: Yes, and David, it’s Eric. I would just add that. As we’ve said before, good news for us is we’ve got the opportunity to continue to drive low double digit organic growth without international. So as Hardeep said, I mean, we’re extremely, extremely bullish around what we see and we’re going to take a very I think thoughtful approach in terms of how we expand internationally. But I do believe over the next few years it will be a fairly material part of the business and the good news is we’re going to do it in I think, a very metered fashion. But what we see in the early indications are extremely positive for us. So super excited about it.

Unidentified Analyst: Awesome. Thank you guys. Really appreciate it.

Hardeep Gulati: Thank you.

Operator: The next question is from Gabriela Borges with Goldman Sachs. Please go ahead.

Unidentified Analyst: Hi, this is Kelly on for Gabriela. Thank you for taking my question. First one is just where is Schoology continuing to gain share? Are you seeing any changes in the competitive landscape and any noticeable trends in the types of deals you’re seeing?

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