Acquisition Of Decision Point Analytics Will Start Contributing From Q2: Latent View Analytics

If the company has extended the timeline for completion of its first tranche of Decision Point Analytics, the acquisition that it made by about 120 days. So Rajan Sethu Ramen, who is the Chief Executive Officer of the company joins us now. Rajan, thank you for joining in. First up, if you could explain that what exactly has led to this change in the timeline or delay in closure of this acquisition? And has there been any impact on this or change in the financial terms? Not really no impact on the financial terms or anything. It is just the normal course of digging through the details. I mean given that they have operations in LATAM, it does meant that we need to understand some of the numbers and stuff better. At this point in time, I would say that we do not have any kind of flags or anything right that we want to raise. It is going as per what we expected. It is just that some of the numbers and the information has been, it is taken some time. We are confident that we will be able to close it in the next few days. I know that the time frame that we have taken in terms of informing has been a little longer, but the overall plan itself is not delayed significantly. So we are expecting that we will close it fairly quickly. OK. So there is no risk of deal falling through according to you in that case, Mr. Sedaraman, can you give us a sense of when will it starting contributing to your consolidated numbers? You are indicated from quarter two is when revenue contribution will come in or will it shift to the second-half? And in that case, does it mean your revenue growth guidance of 25 to 30% growth continues? Yeah, we are expecting that the consolidation will start happening from Q2. We are not expecting any push out from there on. In fact, if things go well, it should be for the full quarter itself, right. So that is where we are at this point in time. The organic growth guidance we had given earlier was kind of similar to what we did last year. I would say that we are in the same thing. I mean somewhere around 16 to 20% is where we have from organic standpoint inorganic. Of course we will know better. The signs are very strong though. In fact, both the decision point and the Laden view teams, the front end teams have been working very closely together and we have been able to take them into a whole bunch of our accounts with the new RGM and GPD capabilities. And they have been able to do the same thing right with our supply chain and R&D innovation capabilities. So things are looking fairly promising at this time, right, in terms of the synergy benefits coming through us. So what happens to this 25 to 30% target because of this deal, you know extending And since you're saying that there is a possibility that you get the entire quarterly revenues for the second quarter, that implies that maybe the deal would you know be done in the next couple of days itself, right? That's true. So we are expecting a closure in the next few days at least that's the information that I have based on the interactions we have been having so far. So hopefully, I mean now, yeah, most of the most of the quarters earnings we should be able to consolidate. OK. And that one 1 1/2 month consolidation that you were expecting earlier in the first quarter itself that hasn't come by. So how much would the impact of that be in your overall sales for this year? So last year they did about $12 million, so roughly $1,000,000 per month. I mean we were expecting that we will have about at 25% growth on on that number. So if you take that about a month impact would be to the tune of about 1.25 million, $1.25 million. So approximately $2,000,000 is what the impact would be right for the 1 1/2 month delay. OK, All right. So let's also talk about the other aspects of your business quarter four step it because of some decisions getting delayed, right. So one of them could be this particular deal as well. What is quarter two looking like so far And I'm sorry we are not into quarter 2 yet, but what is the idea in terms of demand going forward for quarter one? You were looking at 67% quarter one quarter growth as you were pursuing some largest opportunities. Are they on track now? So the yeah, the opportunities are there, but I had alluded that the sluggishness is something that that we were witnessing right when we did the quarterly earnings call. We have had a few closures which are in the half a million mark, but there are also been delays, OK, for with some of that. So I'm expecting that the first quarter itself now will be, I mean while the growth will be there, I mean in terms of actual revenues now we will be able to share it better right after we close the quarter and the numbers second quarter, we feel that it will be better than the first quarter. I mean there should be a pickup on the back of some of the closures that we have had, right, which have come later in the in the first quarter. So the revenue pickup should be there overall for the year, as I said, right, we are probably looking at somewhere between a 16 to 20% kind of a number. So how much lower will the first quarter be versus the six to seven percent QO Q target that you had? We'll be able to confirm that only after we close the numbers among them. So I can't comment on it right now, but it will be a tad lower than that 6 to 7%. And what about the exit margins of 25% that you have, Would you maintain that? No, I mean the exit margins you mean from the last quarter of the of the last year, from the last year to this the end of this year? Yeah, no first quarter is always impacted by wage hikes and compensation are just which is why the entire year is what I'm looking at. For the entire year. I think we should be good, OK. I mean, we will probably be closer to the 23% kind of a mark. I don't know whether we will get to the 25%. It also depends on the revenue optic itself. As you had said earlier, the investment profile that is not going to change significantly in terms of what we are spending on the front end and the marketing. So operating leverage will start kicking in as the revenue trajectory picks up. So at this point in time, based on what we see, we should be good for a 23% kind of a margin, right, close to that kind of OK. All right. You know, you had also formed a partnership with NVIDIA on the generative AI tech stack. Is there any revenue which we can attribute to this? And is this something which would come by in the first half of this fiscal or otherwise? It could take more time than that? Yeah, I mean, I don't know whether we can attribute revenue already. I mean in the first half of the year potentially there will be opportunities that we will close that will lead to revenue. In the second-half of the year, there have been 2-3 pilots that we have done along with NVIDIA tech people and architects helping us with their tech stack. There is at least one real opportunity that is looking like it will get closed in the next 1-2 months itself. We will know better right as we close some of those conversations. I mean, of course the key here is to validate and then confirm that the combination of the NVIDIA GPU's and their A tech stack would be the right decision for the client given the particular use case. And NVIDIA has also been guiding us what kind of use cases right will will make sense. So this is something that we are evaluating right in those pilots and the Pocs that we are executing. So hopefully something in the second-half of the year. OK. All right. So we'll touch base with you, of course, after quarter one numbers and when there is more clarity on this NVIDIA deal as well. Mr. Sethu Rahman, thank you so much for joining us today and answering all those questions. That's the word coming in from Latent View Analytics. Time for a break now. Aditya Agarwal had research and investments at Invest for Eddie, will join in with some trading strategies on the other side. Stay here.