Q: Can you explain why SaaS revenue appears flat despite the transition from on-premise licenses to cloud solutions? A: Stephen Sadler, CEO, explained that SaaS revenue is recognized over time, unlike product revenue which is recognized all at once. The decline in SaaS revenue is partly due to the acquisition of Lifesize, which had declining revenue due to product issues. Despite this, the revenue is higher than expected, and the SaaS segment is improving overall.

Q: How does the rapid adoption of AI in contact centers affect Enghouse's strategy? A: Stephen Sadler, CEO, stated that while competitors promote high adoption rates of AI, the actual financial results do not always reflect this. Enghouse focuses on practical AI applications, such as monitoring call sentiment, rather than relying on large language models. The company does not see the uptake of AI as significant as some competitors claim.

Q: With margins down year-over-year, do you expect to return to 30% margins soon? A: Stephen Sadler, CEO, noted that a large project in the Nordics, which was losing money, is transitioning to maintenance, which should improve margins. The company expects profitability to improve in the near future.

Q: Are you conducting an external search for a new President, or is the role no longer necessary? A: Stephen Sadler, CEO, mentioned that while they are always open to hiring good candidates, there is no active search for a President at this time. The organization is stabilizing, and they are considering internal promotions and potential management from future acquisitions.

Q: Can you provide insights into customer churn and renewal rates, especially with the transition to SaaS? A: Stephen Sadler, CEO, indicated that maintenance renewal rates are around 90%, with many customers still preferring on-prem solutions. The company offers both on-prem and cloud options, maintaining flexibility to meet customer preferences.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.