Q3 2021 Altus Group Ltd Earnings Call
Thank you for standing by this is the conference operator, welcome to the Altice Group third quarter 2021 financial results Conference call.
As a reminder, all participants are in listen only mode and the conference is being recorded.
After the presentation there'll be an opportunity to ask questions.
To join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you May signal, an operator by pressing star Zero I would now like to turn the conference over to Camilla Bartosiewicz. Please go ahead.
Thank you good afternoon, everyone and welcome to Altus group's first quarter results conference call and webcast for the period ended September 30 of 2021. The news release announcing our results was issued after market close this afternoon and posted on our website, along with our interim MD&A and financial.
And our free press release announcing the signing of the definitive agreement to acquire.
Joining us today, our CEO, Mike Gordon and CFO, Angelo Bartolini, who will start with some prepared remarks, and then move right into Q&A session. If we miss any questions. Please contact me directly by email.
And John will begin by covering off our financial performance during the quarter and then Mike will provide an operational update and discuss today's announcement regarding the proposed acquisition of the army.
Before we get started please be advised that some of our remarks on this call may contain forward looking information also feature reminded that I'll just use of certain non-GAAP non enterprise measured and indicated.
Caters a financial and operational performance forward looking information and an explanation of these measures are detailed in todays news releases and in our latest reports on SEDAR.
Forward looking information discussed today is qualified by the cautionary statements included in those reports.
I'll now turn the call over to Angela.
Thanks, Camilla and thank you all for joining us this afternoon.
Our solid sales execution and improving operational efficiencies from the changes we made to our go to market brands continued to drive strong results, enabling us to deliver better than expected financial results for the third quarter.
We're very pleased with our performance and others here today very excited about the transformational innovation ahead of US enabled by the proposed acquisition of Rihanna me.
We're making solid progress against our strategic initiatives, which gives us a solid foundation for continued growth over the long term.
Turning to our financial results in Q3, I will discuss our growth rates on an as reported basis, and where relevant I will discuss the constant currency growth rates as well.
We're really pleased with the robust growth in our consolidated revenues up 12, 5% CAD $151 8 million and adjusted EBITDA up one 5% versus $24 4 million.
And currency, we were up 15, 5% and 5% respectively.
Ultrasound analytics delivered very strong results revenues were $65 million.
32% or 38% in constant currency.
Organic revenues were up 21% in constant currency.
We had double digit organic growth across all key business lines software data solutions and appraisal management benefiting from existing cost of customer cross sell and up sell and from new customer additions to our platforms.
Our organic constant currency growth is the highest it's been in four years.
A solid indicator of the effectiveness of our go to market strategies and the strength of the demand for our products and services.
Equally impressive our overtime revenues are key metric for our recurring revenues were $55 $1 million, which in constant currency represented a 38% year over year increase in 18% decrease organically.
Then 8% sequential increase.
We had solid growth across software subscription data subscriptions and appraisal management solutions.
In addition to the strong over time revenue growth total revenue growth also benefited from higher software consulting revenues, which provides strong indication of the investments companies are making in their technology platforms.
Adjusted EBITDA has shown strong improvement in the quarter of 22% to $11 7 million, 29% in constant currency.
Organic growth was 6% or 13% in constant currency and adjusted EBITDA margins were 18% and 17, 3% for the quarter and year to date, respectively.
Similar to last quarter earnings were impacted by a $1 million purchase price accounting adjustment to Finance Act as deferred revenues, which in turn had a 1% impact to our margin.
Our gross retention rates remain the industry, leading range across all of our software and data analytics solutions, many of which are considered to be a mission critical by our clients.
Our customer success team is laser focused on driving positive results for both net and gross retention.
One measure our AE software maintenance retention rate remains resilient at 95%.
Bookings growth continues to trend very strongly up 89% in Q3 in constant currency of which 77% was organic.
As you'll hear from Mike shortly.
We're making steady progress against our car transition plans also say the growth engine and all of this analytics is going strong and we're really pleased with the solid execution and all the key leading performance indicators are very positive trajectory.
Turning to the CRE consulting segment, our results were on par with the prior year.
Our property tax revenues were up one 5% to $58 5 million and earnings were up 1% to 22 and a half million dollars.
As discussed in our business update during the quarter Covid related disruption and appeal settlement delays in the U S and in the U K constant revenue variability.
This translated into anticipated third quarter revenues to be deferred into future quarters. So I think we've seen play out before.
As a result revenues in the U S and the U K, we're on par with the prior year on a constant currency basis.
The growth in Canada was driven by strong performance in Ontario, and Alberta.
Overall, we're on track to deliver a record revenue and earnings year for property tax in 2021 with growing scale, a robust backlog of appeals and our ongoing digital improvement our performance is becoming more balanced across our key markets to help us mitigate the inherent quarterly variability.
Our property tax bookings are up year over year, and as we deliver on our digitization initiatives and go to market programs. We.
We remain very well positioned for the long term.
As you'll hear from us at the Investor Day, we're positioning the business for the very attractive opportunity ahead of us become more tech enabled and operationally efficient.
And finally, our valuation and cost advisory businesses continued to deliver steady performance with solid reflection of their market leadership revenues were up 2% to $28 3 million and earnings were $3 9 million.
Lou mentioned, we also wanted to discuss the proposed acquisition of Rihanna me on today's call, which is scheduled to close tomorrow given that today is a bank holiday.
Mike will cover off the strategic rationale and I'll spend a couple of minutes now on their financials as we have factored the proposed acquisition into our updated financial guidance for the year.
First this is a very exciting and highly strategic acquisition for us that really propels our data strategy. The synergies are significant and both the revenue and cost side of the equation.
The acquisition also immediately improves our overtime revenue profile as we layer on these additional fast growing recurring revenues.
On a trailing 12 month basis to September 30th their total revenues were $18 3 million.
Their annual recurring revenues are expected to be $21 million by year end and expect it to grow to the to the mid to high $20 million range next year.
On the earnings front adjusted EBIT loss was $16 9 million also on a TTM basis.
The loss largely reflects real enemies investments focused on user growth revenue acceleration and on platform development.
With the anticipated synergies beginning soon after the close of the transaction and into early next year, we expect nominal impact to our earnings for 2022, and we expect we aren't to me to be accretive to earnings in 2023.
Notwithstanding we are enemies impact to the Altus analytics adjusted EBITDA in 2022, when do you still expect a year over year improvement in Altice analytics EBITDA margins for full year 2022.
The purchase price of two $201 5 million represents roughly and I didn't know have multiple on their 2021.
A R R.
In line with recent comparable transactions in the market and replace reflects today's environment for scarce high growth data and our analytics companies.
As we think about the value creation potential ahead of us over the next couple of years and how it will fuel growth and enabled transformative innovation. We expect the returns from this transaction will be extremely attractive as it will give us an increased position in the CRE data and analytics space.
Again, very strategic transaction for us.
So factoring and Rihanna me.
<unk> increased our full year 2021, consolidated consolidated revenue guidance, calling for year over year growth in the range of 10, and a half to 11, 5%.
And our adjusted EBITDA guidance, which would have been on the top end of our previous range is now being adjusted to reflect the impact of these losses.
A table of our updated financial guidance by business segment is available in our press release or as detailed in our MD&A.
With robust financial flexibility flexibility, we are well positioned to acquire we ought to be for approximately 250 million Canadian.
Which will be funded primarily by a combination of cash on hand. In addition to our credit facility of approximately $100 million with a total of approximately 338 debt subsequent to the acquisition.
We estimate this.
We'll bring our funded debt to adjusted EBITDA leverage ratio to approximately three times.
Still maintaining healthy room to our maximum covenant of four times, we're comfortable being at this level in the near term as we see a significant deleverage path to the low twos by the end of 2022 through a combination of debt repayments and higher adjusted EBITA.
With that I'll now turn it over to Mike.
Thanks, Angela and good afternoon, everyone hears a lot to cover today. So I'll focus my time on a quick cloud transition update cover off some of the operational changes at Altice analytics, and then dive right into the strategic fit of reality.
Accelerating Argus enterprise cloud adoption remains a top priority for us and we're tracking right on plan.
I am very pleased to share. This week, we reached our 2008 E cloud customer milestone. This includes both new <unk> customers as well as those who have migrated from a legacy on premise version, representing a solid base of <unk> customers and thousands of users in our cloud ecosystem.
Also worth pointing out we continue to have strong add on purchase rates for our software products and we've been consistent in adding new customers each quarter and in Q3, we accelerated this by adding 338, new software logos, putting us over 870 year to date.
Clearly, we still have a lot of runway in our large addressable market. This is substantially higher than what we were adding in 2020 and a solid reflection of our improved go to market posture and our focus on developing our inside sales customer success and new sales strategies.
In Q3, we saw a consistent trend of more medium sized businesses moving to the cloud, finishing the quarter with 29% of our total Argus enterprise user base contracted on Argus cloud platform.
That's approximately triple the customer base at the same time last year.
Trend is consistent with our expectation that we'll finish the year between 35% to 40% penetration and we expect a good inflection point next year, especially as more of our larger customers have indicated interest and plan to move in the coming quarters.
Earlier. This week, we released Argus enterprise version for tea and the collaboration service feature on Argus cloud.
In this release multiple requests from large and multinational CRE organizations have now been satisfied.
These improvements are universally applicable to our target market for large multi product deals that will use Argus enterprise as the basis for their business planning functions.
For users who upgrade to version 14 on Argus cloud they'll have access to our collaboration service functionality.
This feature allows administrators to add guest users into their cloud environments with control over how they will access and collaborate on Argus enterprise files.
Effectively this allows customers to spend less time, managing the final transfer involved in the complex processes, such as budgeting, where valuations and gain more trust from the data that they're working on.
Collectively we believe these updates will help drive Argus cloud adoption and retention and continued to expand our global Argus enterprise market.
Coinciding with the release of Argus Enterprise, 14th we also announced to our customers that it marks the final version that the software will be available on premise.
Beginning with version 14 that one all updates will only be available on Argus cloud.
We also announced at the end of support for AE 12.1 or older by June 30th 2022.
Requiring customers to upgrade to version 13 or 14 to remain are supported versions of the software.
Given the importance of the model capability between versions and being on a supported software.
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Well I can definitely say that was user my part clearly.
On the tech oriented data, who doesn't know how to hit the right Budd let.
Let me move on.
Going forward as <unk> talked before that we're under a simple focused and execution oriented operating model that will unify our go to market service delivery and customer success teams.
We believe as we move forward. This ubiquitous model that unifies, our valuation investment and asset management capabilities into a single cloud based platform that integrates numerous key workflows and enhances data driven insights for the CRE industry.
Finance active strategy analytics and now Rihanna me will integrate into this new model.
While we are looking forward to sharing more information on that at our upcoming Investor Day on December nine this new model will continue to enhance our go to market model and will allow us to continue to grow bookings and revenue more effectively bill.
Building on the improvements this year.
Overall will be better positioned to bring more value to clients by helping them solve their biggest problems in a holistic way shifting from a product to a solution orientation that will address more of the customer value chain above all we will scale more effectively and efficiently going forward.
Bringing consistency avoid.
<unk> of effort and offer a far more attractive employee value proposition.
Having done similar transitions with Jim Hannan before throughout our careers I'm very optimistic about the value we can unlock for our clients and our business and I have full confidence in Jim's execution.
We've done it successfully before and the model is best suited for where we're taking our altus analytics business, particularly as we build upon our data and analytics solutions.
This now brings us to re army.
As we've been discussing on our past earnings call, we have been accelerating our efforts on driving product innovation with predictive analytics and data organically.
Organically through our data strategy initiatives and through the acquisition of strategy analytics platform earlier this year.
The timing is indeed critical.
<unk> E Tech market is maturing and consolidating point solution providers at a much faster pace than in the past not dissimilar to what I saw unfold in the financial services industry, a couple of decades ago.
Scaled category owning leaders are emerging in the market is forming this compels us to move fast to protect our strong business moats and stay ahead of the demand curve when.
When the opportunity with Rihanna <unk> emerged we wanted to move quickly as high quality assets like theirs are rare in our space and the strategic fit was spot on.
We're also pleased to have been able to come to terms outside of the sales process. The strategic fit between our companies was obvious to both parties, enabling transformative innovation that can only be achieved together.
And as you heard from Angelo today, the transaction is financially compelling.
Enemy will enhance our growth profile, particularly in annual recurring revenue growth and there are robust synergies ahead. There is a solid plan to improve their profitability to become accretive to our adjusted EBITDA and cash flow by 2023.
But this acquisition is also highly strategic for us.
The combination of <unk> AI powered data platforms with offices suite of software data and analytics capabilities creates a very compelling client offering that will enable our clients to better manage performance and risk within their CRE portfolios with data driven insights and.
And eventually predictive analytics and alert capabilities, it's significantly accelerates our transformational innovation in AI predictive data analytics by better positioning us technologically with data science and analytics expertise and with a robust data set to add analytics into workflows that not only look back.
At what happened and why we'll.
So look forward to the machine learning informing us on what might happen next.
So let me take a couple of seconds to take you through the vision.
Real estate investment activities are becoming more complex as equity investors Chase alpha while managing data manner.
Managed risks take advantage of the growing demand for real estate as an alternative investment and given the global fight for talent are looking to do all of this at scale with more automation and intelligence.
Altice currently serves the top global investors with our integrated valuation management Argus software and performance management solutions, we have been executing on our strategy to transition from descriptive and diagnostic solutions into predictive and eventually prescriptive offerings.
Following extensive client validation third party research and industry analysis, we have identified that data automation asset, scoring predictive analytics and decision optimization as being opportunities to expand our value to our customers.
The acquisition of strategy analytics was the first step in this process fast tracking the go to market timeline for predictive analytics by at least two years the.
The addition of <unk> will be foundational to and accelerates our innovation and data strategy to solve key CRE challenges with real time data driven insights predictive analytics and alert capabilities.
The team over there provides us with the following.
Ah powered and highly automated data management or an organization technology extensive CRE data coverage across the entire U S CRE markets.
Hey, scalable web platform to deliver insights.
And key talent and resources with a very strong cultural fit with Argus.
Okay Richard circuits in the entire re army team has done an exceptional job leveraging AI and machine learning to solve key data management challenges in the CRE industry and unveil hidden data relationships integrating Rihanna on these data and technical capabilities with our recently acquired strategy analytics.
Platform for predictive analytics will enable us to deliver analytics at scale and we integrated together with our foundational Argus software solutions will be transformational for the CRE industry, our clients will be able to gain deep insights on their CRE assets in a way we believe has never been done before.
Our combined use cases will be highly differentiated encompassing data management opportunity and acquisition analytics property, scoring CRE market data and data ingestion technology. In addition to the strong strategic fit re army meets all the criteria that we seek in our acquisition.
For all <unk>, a strong market presence and strategic adjacent end market geography, modern technology and cloud solutions. It addresses a critical workflow for our product roadmap, our strong install base with mutual cross selling potential potential for very high financial returns and of course a.
Strong talents and cultural fit.
We're inheriting a very well run business with a talented team that aligns with our Altice group employees.
But fundamentally the potential future returns are especially attractive and as there is a solid plan for how we make a one plus one equal three by coming together.
We're extremely excited about our coming together and look forward to sharing more information on our product roadmap at our Investor day on December 9th.
In closing, we will finish off the year in a very strong position heading into 2022 or.
Our growth engine and Altus analytics is going strong with all the key leading performance indicators on a very positive trajectory. Our cloud transition is on plan and set up for a good inflection point this year and next year.
We're adding value to clients through our product innovation and as evidenced by our strong bookings growth. Our new go to market plans are effective driving strong execution and this is a great precursor to our new operating model for 2022.
On the CRE consulting side.
Taxes now transitioned on their global model and making good progress against our Digitization agenda. Many of the changes we have been making this year at all say analytics will be the focus for tax next year. In addition, we're seeing phenomenal progress in our cost business units.
Is there a focus on sales has increased immensely will.
We will be entering the new year with substantially improved it infrastructure and we delivered on our goal of moving our strategic market Adjacencies and debt and data analytics.
All of this puts us in a very strong position to head into 2022 to continue growing our business and creating additional value for our shareholders.
To my colleagues congratulations for a another solid quarter.
It has been a busy year and I appreciate all your hard work and dedication to our mission.
I'd also love to welcome the <unk> team to Altice as well as their customers and partners. We're glad to have you join us at a very exciting chapter in our growth journey as we continue to drive transformational innovation in the market.
To our shareholders and analysts we appreciate your ongoing support as we continue to transition Altice and we look forward to welcoming you at our Investor Day on December 9th both in person in New York and virtually.
Please don't forget to register in advance on our web site. Okay now, let's open the line for questions operator.
Thank you we will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request.
You are using a speakerphone please pick up your handset before pressing any Keith.
Withdraw your question. Please press Star then two we will pause for a moment of callers join the queue.
Our first question comes from Yuri Lynk of Canaccord Genuity. Please go ahead.
Hey, good evening and good evening, everyone and congratulations on the Ah interesting acquisition.
Hey, Gary.
Hey, Eric.
Just on the you know what I mean.
It seems like it's.
Fairly transactional driven tool in terms of.
The solutions that it provides and.
No.
AE is the valuation portfolio management.
Benchmarking in there as well so just maybe a bit more detail on how your your existing users.
Be interested in and the.
The offering for me on me or is it all about stepping out into into adjacent markets.
Just what's the maybe a little more detail on how it all ties in.
No sure I think that.
It's obviously an adjacency for us so that's an easy thing for us to go into but I think that as we looked at.
The solution set that they had we were <unk>.
Very drawn to their knowledge graph analytics as well as their ability to.
Put a unique identifier on.
Key assets in the CRE space and when we looked at that and the ability to bring that into our data that's sitting on the Rguest platform. We felt that those two pieces along with what we were building in strategy.
Around investment management analytics as well as.
Valuation analytics, we felt that those things would be.
<unk> into <unk>.
How people would run their models using rguest so in the short term.
We're going to be leveraging those that platform.
In coordination with August but in the long term you're going to see this pulling together on the cloud platform, where people will be able to leverage the analytics running and the machine learning running right with their Argos valuation models, while they're sitting in rguest collaborating with their other users and at the same time being.
To pull data in other.
Asset insights in and that's how we're looking to improve it. So it's yes, we're stepping out into an adjacency, but very much we are trying to build upon our valuation and risk management and help our customers make better decisions around their assets.
Okay.
Thanks.
Just a clarification question Angelo referenced.
Altus analytics Martin you still expect margin increases next year.
On the EBITDA line is that correct helps analytics.
Yes, yes, that's correct Gary.
Just keeping it simple.
Oh, good just wanted to sure I heard that right okay.
Congrats I'll get back in the queue.
Thanks, Gary.
Our next question comes from Daniel Chan of TD Securities. Please go ahead.
Hi, good evening sounds like a pretty interesting asset there I think it was probably maybe just three years ago that we were talking about the market readiness of CRE to just move to the cloud and the hesitancy to do that.
What gives you comfort that the market is now ready to take on something like AI ml in the workplace.
I think that a lot of things have changed I mean, obviously I've only been here a year. So I can't talk about three years ago, but what I would say is.
I think the market really absorbed some punches from COVID-19.
I think that when they start looking at new ways to look at the industry and and and actually start evaluating things.
Tools that have been used in financial services for years and access to data and alerts and like I talked about the knowledge graph or a unique identifier had been done in other places in the past and as we've been looking through and mapping the data that we have from our customers and how we can bring more value to them. This is some.
Thing that we heard is we've been putting together our product roadmaps that are that customers want to go there they need to get more out of what what was historically point solutions in 2018, and they really want these enterprise solutions and I think that if you look at what we're doing with this is we are really building an enterprise risk management and.
<unk> solution to really help.
Our CRE customers manage their defeat their decisions more effectively.
And make it in a very quick and educated way and I think as we do that that unlocked a huge amount of value for them as they are trying to manage their portfolios, whether they're doing it from an investment management perspective, whether they are doing it from an asset management perspective, or whether they are servicing.
Their customers and so I think.
There was some.
There was probably some skepticism a number of years ago, but I think that skepticism has broken and people are looking at these things and they know they need to move to these things fairly quickly and we're seeing very good demand.
That sounds good it makes a lot of sense.
It sounds like Theres, a lot of good cross sell opportunities here as well how will you be charging for Rihanna me is it kind of like an annual subscription per user as an add on to your Argus enterprise.
If so what is the customer overlap you got whats your Argus users.
So Rihanna has historically been what I would call the tier maybe the tier two tier three and tier four space and they have phenomenal coverage across all assets in the U S and they have some tier one suppliers are some tier one customers. We're expecting the fit is right into argus into all our tier one and tier two.
Customers and offering this as an add on to Rguest, but also adding it in.
Add on with.
With strategy and I think that as we price this youre going to see we're going to leverage the pricing models.
<unk> historically been user based pricing, but youll see transactional based pricing <unk> asset based pricing. So we'll be finalizing those models as we move.
The platforms together, but our goal is to make it easy to pull up in the Rguest platform.
The data and analytics into one platform. So they don't have to leave and look at multiple platforms to do valuation and risk management.
Okay that makes sense and then maybe one question on cloud you mentioned that youre going to and support for anything below $8 13.
Can you give us an update on how much of their user bases on on that.
On those versions.
Oh, that's a good question I think there is.
I think there's probably a.
A couple of thousand users down there I'm guessing right now, but we've had one of the things that we've done is we've talked to our biggest users who are using.
12, one and below and confirmed with them and told them before we announce that this was going to happen. So the preponderance of those users.
Our prepared to make a move now we would like them to move to the cloud, but we will support them if they want to move to an on premise version as well.
Got it thank you.
Okay.
Our next question comes from.
Our next question comes from Stephen Macleod of BMO capital markets. Please go ahead.
Thank you good evening.
Just wondering do you think you're on.
Hey, Mike Thank you.
Wanted to follow up when you would think just about Adriano me can you give a little bit of color on sort of what the recent growth rate has been.
In terms of the revenue growth.
Yeah on an error.
Plan with what Theyre doing what they are doing what we believe they're going to finish 2021 <unk> compared to 2020, it's over 25% and we think that we will be able to enhance that with cross sell next year as we bring that into our customer set.
If you look at their long term growth that had been in the 25% to 30% range. If you look at a CAGR they had some step back.
In.
As Covid came in but the team the management team did a very good job at directing the shift through.
The Covid timeframe and we're very impressed with what they are building.
Great and.
On the 20th present that you said there.
Is that from today to the end of 2021 is that what you meant.
Oh, sorry at the end of 2020.
That's right and so what we know what we're looking at data when I compare if I compare where they will be and we've gone through this with them at the end of 2021 to compare to what they finished at 2022 I'm sorry with a finished in 2020 there.
Our growth will be over 25%.
From the end of Q2, what we're expecting as we expect that growth rate to increase maybe into the mid thirty's.
I see I see.
Okay. Okay, that's great.
And just looking on the reality of what I say it looks like they do.
Commercial mostly commercial but also it looks like some residential unless I'm seeing that wrong.
Is there a portion of their business that is focused on the residential market or is it all commercial.
It's all commercial there.
There might be a couple of things that trail into like what I would call multifamily, but it's all commercial.
Okay, that's great.
And then I guess, when you think about where the where the RF.
Is today versus where you where you want it to be and you talked about sort of the accretive the accretion in 2023.
Are most of those if most of that growth coming from cross selling.
Leveraging the platform owners or are there other things you can do to pull other levers.
To drive that growth no I think theres a couple of different ways that we looked at the revenue and how we looked at what Theyre doing so first off they are a very good sales team and they've been doing a great job.
Improving upon their retention from their customer success to their go to market teams.
Well, we've just looked at as we just took what we thought that their growth rate would be going into next year.
And we're shifting a little bit of it we're going to ask them to shift a little bit of their focus to some of the tier one and tier two customers along with our teams and then we think that is going to be the difference between.
What they are achieving today to what we think will go into next year. So our belief is that we're going to be.
Talking to our larger.
Customers and walking them through the value of the analytics and the data that they have along with the cross sell that we believe that will bring with the strategy and analytics that we already have as well and pulling that together with the data that we have on Argus. So.
My view is we tend to we put out there about a 35% to 36% growth curve for us for next year and the year thereafter at the same point.
We think that we will see a good amount of the growth also coming in.
Our strategy and models, so that is separated still and as we pull things together in 2023, as we bring our <unk> business in Canada together with Rihanna me together with strategy to them I think we will be producing something that will be.
<unk>.
It's closer to $100 million in revenue.
We believe that we'll get into the 20% to 25% range and EBITDA. So the three of those businesses combined so our goal is to bring those businesses together into a data.
Data unit.
Okay. That's.
That's great color. Thank you Mike.
Yeah.
Our next question comes from Richard Tse of National Bank Financial. Please go ahead.
Thank you Mike.
Just wondering how long do you think it'll take to integrates Riyadh I mean, it was straight up them in I guess in a related question do you have to have those assets integrated before you go to market.
No. So to your second question, we don't need to those assets, we got our our sales plans and we've been working with their team to put that together immediately we will start to hit the market.
As soon as we finalize the.
Solution sales solution tomorrow actually a number of our executives will be meeting with their executives in New York Tomorrow.
I'm talking to you guys. So I'll be up here and I'll be down there on Monday, and Tuesday, So I think.
We don't need that to be integrated now as to some of the other use cases that we want to get too and some of the further growth items, that's where we wanted to get the integration to especially when you get into the analytics side and especially the alerting side that we've been talking about Richard <unk>.
Finding the changes on.
The data and how that would relate when it comes to valuation and risk management that would be something that we'd want to alert that we would want those alerts can be working on and we won't we would want that to integrate directly into rguest. So that rguest would be telling people something is changing.
Okay, Okay, and then to sort of your <unk> question at the beginning here could you maybe sort of share with US. An example of the most sort of common use case.
You know what I mean, it would put off for your existing customer base.
Yeah sure I think that's the use case that we wanted to get out there really quick really quickly and a non integrated way is for them to be able to open up.
The data profiles in acw, where they can look at <unk> data in and we would go right into their web interface and they could actually take a look at how that data is changing and make decisions on their valuation.
Next year, where we'd like to get to is we'd like a pipe that data directly in and integrate that right into August so youre pulling that rate in youre looking at your valuation and you're making a change right then and there and then what we would like to do then you could use.
The strength of strategy.
And be able to do optimization and portfolio management and run stimulations on what Youre seeing happening there.
So I guess I'd put it in a box.
Kind of evolve as we integrate the businesses together.
Hey.
And just one last one for me you know, you're clearly, making a pretty concerted effort to get further in the tech. So when you look at the property tax business today is that still concerned strategic or or is it sort of now the dilutive given what you're trying to do here.
Fair question it.
It is absolutely strategic I should probably I mean today was a day that we talk more on altus analytics for sure, but what we look at with the data and analytics that we have sitting down and talking with Alex Probyn. We are absolutely, bringing this technology into tax and I think that as we sit back.
Talk about what we're going to be doing in tax next year, we're going to be really focusing on building those task platforms out so that we can share data back and forth with assets from rguest to our tax platforms and be able to push that forward with Rihanna mean strategy. So tax is incredibly important and we will be.
Transformative for us.
Okay, great. Thank you.
Our next question comes from Paul Treiber of RBC capital markets. Please go ahead.
Oh, thanks, very much and good afternoon.
You mentioned.
Several times that you can see the combination.
Of all consumer and army is transformational for the industry. When you look at the landscape. The competitive landscape you know other players yeah startups and even larger players how unique do you feel that the assets and the technology that you now have put together are in this space.
I think fundamentally we will be the definitive leaders when it comes to valuation and risk management and commercial real estate I think that when you take a look at our technology platforms and the breadth of our functionality that we have in Argus is broader than everything we've had that embedded in.
With our our large tier one and tier two providers and bringing together.
And analytics at platform, which we've been already starting to talk to our customers with along with an adviser are advisory solutions and now you bring together like a knowledge graph that can kind of take a look at things for you and bring and do the matching algorithms I think that's incredibly transformation.
I feel like our technology is going to be leading in this industry I think that as you know as we sit back and talk to you all in the next month or so about our our roadmaps, you'll see what we're trying to do with our platforms going forward and I think the platforms from a perspective of.
<unk> will be leading with analytics will be following that up with data, but you have to also follow that up with the workflow and the Decisioning. That's there and I think those are those four things we have and we're building out pretty well. So we feel really good and again when I talk about our space. It is valuation and risk management for the Decisioning in.
Commercial real estate so to US we think we've got something that it will be very hard to compete with.
And you've made a number of acquisitions this year fairly large ones and <unk>.
When you look at the roadmap and do you feel like there's anything missing from a product roadmap when a view in the sort of the medium term do you think is crucial or maybe another way of putting it is like what is the.
The thing that that willingness to continue to make acquisitions ignoring the financial.
From them from a capacity point of view.
Paul That's a very fair question I'll put it this way I sit back and we talk.
With our product teams I talk with Jorge long ago.
Those are all the time to sit back and like where we're putting things together as we look at things, we're looking across the value chain and the value chain for us when we moved into finance active there was debt, but that also helps us on.
Some of the construction side of things and I think that as we look across the value chain from a build aspect to an asset acquisition to the asset management and flash investment management to the disposal I think that in any case and where we have a gap in that area, you'll see us.
Looking either too.
Acquire a point solution to fill that and build something or partner with a third party.
That's helpful.
And last question for me and just following up from Richard's question just on integration.
How should we think about the the level of product integration.
Or are you thinking of just you know fairly light integration through AP is or should we think of.
You know that you see a need for a deep rewrite of the different code bases like is that is that a necessity and then in the near term or not.
I don't think it's at either end of the spectrum.
When I look at it I would think about it with our teams I think about it in the layers. We look at the different layers and I would tell you that I think the integration layer.
<unk> has.
We will be calling the integration layer that we leverage with harvest and so I think youre going to see us. Our teams are already been working together with their teams on what should be.
But what should be brought forward what should it be separated how we should be looking at these things together all of these are cloud based solutions, we have some things on the Rguest platform that we want to bring it into a server list kind of technology very similar to like where are we on EMEA and strategy.
And this is something that youll see those things.
Moving the Argus enterprise solution along faster.
Okay. Thank you I'll pipeline.
Once again, if you have a question. Please press Star then one.
This concludes the question and answer session I would like to turn the conference back over to Mike Gordon for any closing remarks.
Well. Thank you for all your attention and for your interest in Altice group and we do look forward to hosting all of you next month at our Investor Day on December 9th if anyone has any additional questions. Please contact Camilla directly she knows how to work with all of you.
Well again, thanks, Thank my team and the entire Altice and Rihanna <unk> team for a job well done looking forward to finishing off a great year. Thanks for your time and have a great evening.
Okay.
This concludes today's conference call should you have any further questions. Please contact Camilla Bartoshevich at Altus Group you may disconnect. Your lines. Thank you for participating and have a pleasant day.
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