Software Acquisition Group Inc. III (NASDAQ:SWAG) Q2 2023 Earnings Call Transcript

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Robert Smith: Well, that helps a lot. And just one last question. Just looking at macro trends. What are you seeing for your customers’ marketing budgets? And how do you think that that’s going to affect the rest of your year?

Andy Shape: Sure. So marketing budgets, we have — we have heard within the industry. I haven’t seen any specific stats, but we have heard within the industry that a lot of our suppliers and customers had seen a slowdown in business, maybe not going backwards, but maybe not as much growth as we have seen in the past. We’re seeing growth, but one of the things that we are recognizing are not as many orders but larger orders. So what we have found is our customers are really taking larger initiatives and really putting more towards those initiatives that are a little bit more targeted rather than mass blanketed. So again, with our bookings that we currently have of over $15 million worth of bookings, we’re confident that these large orders will hit in Q3 — or they are going to hit in Q3 and Q4 with additional revenue, incremental revenue that we’re very confident that we’ll see very strong Q3 and Q4, especially Q4 numbers because a lot of that revenue is going to hit then, and we’re very optimistic about the long-term spending between holiday, holiday bookings in a strong second half of the year.

Operator: [Operator Instructions] We have a question from Mike [indiscernible] who is an investor.

Unidentified Analyst : Stock is trading around $1.30. Where do you and the Board stand or discuss or think about buybacks?

Andy Shape: Sure. So we do have a buyback in place where, historically, I think we spent about $3 million on buybacks, and we have approved up to $10 million for buyback. And it’s really balancing preservation of cash and using that versus buying back the stock. So one of the things that we look at is a combination of why we went public. We went public to use that money to accelerate our growth and really to go and create something special within this industry because we feel like there’s such an opportunity within the promotional products industry to become a true leader. So balancing between building long-term value in the company, becoming a true industry leader versus buying back shares as well. So we look at a fine balance between them, and we will take advantage of that when we see it as we have in the past, and we have — as I mentioned, I think we have about $6 million or $7 million left to take advantage of that if we find that to our bank and to our shareholders.

Operator: We currently have no further questions in queue at this time, so I will hand it back to management for any closing remarks they may have.

Andy Shape: Great. Well, thank you, everybody, for joining. We’re optimistic about Stran, our future and where we are today and where we’re going in the future. So thank you. Please stay in touch with us and keep watching. We have a lot to happen in the next few months and excited to report on that. Thank you.

Operator: Thank you, ladies and gentlemen. This does conclude today’s conference, and you may disconnect your lines at this time, and we thank you for your participation.

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