PWSC - PowerSchool Holdings Inc. (PWSC) Q1 2024 Earnings Call Transcript
2024-05-07 22:20:24 ET
PowerSchool Holdings, Inc. (PWSC)
Q1 2024 Results Conference Call
May 07, 2024 05:00 PM ET
Company Participants
Shane Harrison - Senior Vice President of Investor Relations
Hardeep Gulati - Chief Executive Officer
Eric Shander - Chief Financial Officer
Conference Call Participants
Dan Bergstrom - RBC Capital Markets
Jessica Wang - Raymond James
Saket Kalia - Barclays
Brent Thill - Jefferies
Pat McIlwee - William Blair
George McGreehan - Bank of America Securities
Rich Hilliker - UBS
Joe Vruwink - Baird
Fred Havemeyer - Macquarie
Ryan MacDonald - Needham & Company
Brett Knoblauch - Cantor Fritzgerald
Presentation
Operator
Good day, and welcome to the PowerSchool First Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note this event is being recorded.
I would like now to turn the conference over to Shane Harrison, Senior Vice President of Investor Relations. Please go ahead.
Shane Harrison
Welcome, everyone, to PowerSchool's earnings conference call for the first quarter ended March 31, 2024. I wanted to first let you know that we posted a slide deck to the Investor Relations section of our website that accompanies our remarks here. On the call today, we have Power Schools CEO, Hardeep Gulati; and President and CFO, Eric Shander.
Before getting started, I'd like to emphasize that this call, including the Q&A portion, will include statements related to the expected future results for our company which are, therefore, forward-looking statements.
Our actual results may differ materially from our projections due to a number of risks and uncertainties. The risks and uncertainties that forward-looking statements are subject to are described in our earnings release and other SEC filings. Today's remarks will also include references to non-GAAP financial measures.
Additional information, including definitions and reconciliations between non-GAAP financial information to the GAAP financial information is provided in the corresponding press release and results presentation, which are both posted on PowerSchool's Investor Relations website at investors.powerschool.com. A replay of this call will also be posted to the same website.
With that, let me now turn the call over to Hardeep.
Hardeep Gulati
Thank you, Shane, and thank you, everyone, for joining us today. We are starting 2024 with continued strong momentum, beating the midpoint of our revenue outlook and exceeding the high end of our outlook for adjusted EBITDA. ARR grew 18% year-over-year, while NRR improved 30 basis points sequentially to 107%. First quarter revenue totaled $185 million, up 16% year-over-year, and subscription and support revenue growing 18% to $167 million.
Adjusted EBITDA improved 24% year-over-year to $61 million, representing a 33% margin, an expansion of over 2 percentage points year-over-year. These first quarter results showcase the robustness of software spend in K2 market and the continued demand and stickiness of our market-leading mission-critical solutions that drive better education outcomes in power educators and help districts run more efficiently....
PowerSchool Holdings, Inc. (PWSC) Q1 2024 Earnings Call Transcript