Q3 2022 National Research Corp Earnings Call

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Thank you for joining today's conference call May have your first name.

Yes, Hi, this is from Rachel R E C H E L.

Ooh.

Last name.

It's Smith S M I T H.

And your affiliation.

Yes.

I'm with ore that's H E R E.

Yeah.

Yeah.

Who.

New clients, so health care systems that.

Our new to NRC health it.

I'm joined in.

Adding human understanding program to the services will be providing for them.

Okay, that's really good.

And so the sales forces it sounds like continues to expand can you give us an update on our sales force.

And changes that are ongoing with the sales force.

Sure George the focus is on Sn.

Essentially increasing the number of sales associates that we have.

I think like a lot of companies you know, we saw a little bit higher turnover rate over the last couple of years and you know we've been.

Actively looking to you know not only backfill, where we had open positions, but we're also looking now to increasing our overall sales force as we move forward.

You know in alignment with the fact that we are seeing an increase in the pipeline. So there are more opportunities that are.

But are there for us to follow up on and therefore, we want to increase the overall number of salespeople that we have so that's really our focus right now.

That's that's helpful and on the pipeline can you give us a little more color.

Bolt on.

Potential upsells with existing clients as well as new client adds.

Generally speaking our.

At any point in time the opportunities that are in the pipeline are generally.

Fairly split between upsell and cross sell opportunities of existing clients as well as opportunities for new organizations that are not currently doing business with us. So in terms of dollar amount its generally fairly evenly split.

And I would say that's the case today in terms of what we're seeing and the growth that we're seeing.

We have increased the number of new opportunities.

Got it.

Now on expenses it looks like they continue to.

Trend higher this quarter.

These discrete investments or would you say that they're more permanent or at least longer lived step up too.

<unk> expenses.

Yes.

You know one of the biggest increases.

As in our marketing expenses, and we've made a pretty significant investment this year both in staff.

And.

Patients that were doing in terms of some advertising and targeted programs that we have not done in the past. So we really believe that and.

And we're starting to see results already in terms of increase.

Lead generation so the increase in.

Marketing spend relatively speaking that that will continue.

Going into the future and we believe that that will pay off in terms of incremental sales and growth in contract value.

Some of the other areas, where we did increase spending.

Are going to be more discrete some of the automation investments are really discrete investments that we're finishing up that will pay off in the future in terms of associate productivity.

But really those are more one time investments.

Yes.

Yes.

And are any of the investments.

I know you guys are working on doing some work on your headquarters or are any of these investments flowing through the P&L or is that mostly the cash flow.

At this point the vast majority of those costs are being capitalized we did have some.

Some expense running through the P&L in 2021.

And early this year as some renovation or demolition work was being done but at this point and going forward those costs are essentially all capitalized.

Yeah.

Great.

Thanks, a lot guys.

Youre welcome.

Thank you.

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Okay.

Okay. At this time I would like to pass the conference back over to Kevin for any closing remarks.

Thank you Billy I just wanted to thank everyone for their time today and say that we look forward to sharing our results again next quarter. Thank you.

That concludes today's conference call. Thank you all for your participation you may now disconnect your lines.

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Yes.

Yeah.

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