Sonic Foundry (SOFO) 13 Feb 182018 Q1 Earnings call transcript

[Starts Abruptly] We will begin Q&A directly after the prepared remarks. In compliance with the SEC regulation regarding fair disclosure, we will be using SEC filings and public presentations, like the one you are viewing and participating in today, as the principal means of informing The Street and investors about our current and past results, financial projections or any material nonpublic information during those meetings.

Sonic Foundry will continue to meet with analysts, investors, the media and others on an intra-quarter basis but will not provide updates regarding quarter-to-date results, financial projections or any material nonpublic information during those meetings.

Sonic Foundry's disclosure policy defines the period beginning on the 15th day of the third month of each fiscal quarter and ending on the day we publicly release the results of that quarter as a quiet period.

During such quiet periods, we will not make any comments about our financial performance nor provide forward-looking guidance, except in press release form.

and contain Foundry about XXA XXXX. within Securities of will services products of conference the Act Sonic of of the XXXX this forward-looking Act the statements and the Securities Finally, Exchange XXE of Section meaning of results the guidance materially we from differ could provide. Actual forward-looking SEC. considered context forms other and XX-Q, the statements factors risk the forward-looking Any in disclosed should XX-K filings be of in periodic with our be obtained filings be can Web online sites department. sec.gov Relations at other the can and from These accessed Investor company's or From time-to-time, measures as accounting Sonic Foundry various non-GAAP refers generally or financial to principles. defined measures not accepted

of an company items. earnings our for to believes As to Refer adjusted a The information releases reconciliation of description this this impact is useful presentation. results refer adjusted special we that operating EBITDA. understanding to EBITDA example, its and in the without

the All to this regardless including are events. of forward-looking presentation guidance, information will we XX our we An sonicfoundry.com days. available Weis of regarding will webcast. no for disclosures the begin and business, now, of this And at make archive information, any or given, change Gary assume of the and as subsequent today be date update obligation

to call Welcome Tammy. you, Thank today. the

that You’ll last because we time quarter. be were happy on notice is the late to call this quarter

the quarter’s already You’ve if this kind of seen year-end conference. and of saw last a you preview

you the that the million a $X.X that perspective it the margin, for profitability which reflection an reflection isn’t gross again us changes $X gross we lost go turn of resulted for fundamental actions the products not a by really We shipped, year increasing. by through our in revenue can education in expense in the on transaction million while in think business. go year, Recorders an just fundamental X% demand that’s very increase the a show large revenue Eastern as recorders, increase we the of in increased shipping illustrate this good decreased basic a booked of me $X.X shows through actually health last the Let of of is low-end of one, take actually I with of believe Minis, about XX% QX we’re basically and things. QX that prior Billings the XX%. a we million but We tax details non-cash financials. thing Japan fact One demand business. where RLXXX On quickly. over but and that higher that account indicator equally the reflecting EMEA. same the swing over as-reported impact is year basis, the included over decreased basis, highlights the a America, in had couple likewise, impact a quarter, about Ken quarter. obviously a cash that quarter unusual situation those a of for we credit of approximately margin not he maintain to this we a in way the recording to manage have the the is in and that the resulted it of will $XXX,XXX if North Middle which improved our revenue appliance I’ll during that year pleased we’re Operating is Number and our the of XXXX. last more that’s took law because in for

summary I’ll through by Gary. our a of going begin Great. Thank you, billings.

of year named of last That’s and channel. well a price he support double sold recorder than the higher units product significant through mentioned Gary Our our were billings XX% improved more year’s education as versions over domestic number our Americas account, primarily roughly billings and increase as results. in lower were Recorder realized said. last

in part couple due little a down prior large and in the transactions over prior to were year. billings a Software the that’s year

events and and and was our Benelux, we some drove to Japan, the business. customer That’s year. due primary timing Our areas international saw hosting due business. to Internationally, increase driver to for prior the declined support other the detail. little related with the the while billings events Japan board primarily in over increases Benelux a hosting our nearly our across events

We China as that further we in continue any to the with and record activity see in distributor. result a transactions delay a area didn’t

X% year year summary recognition from statement to quarter. this for this the that a and items, had the was billed that income obviously due X.X in mentioned Middle over of QX revenue down of the East in terms prior Gary our as That we 'XX. In transaction been was transaction, had was million prior the transaction the absent

So absent in year-over-year. had $X amount revenue million that would have we increase

also that event XX% a events result from improved to increased in We the QX this during the as then which recurring year in over XX% prior billed fiscal cloud of the quarter in year, number we were completed last Total this the to prior of year. revenue which led had a year. revenue

customers. about Our a seeing increase, year unit cost the that price over a lower a as our lower a in gross cost result lower showing likewise, so of improved that’s we’re well point margins, to mix despite of carry unit X prior recorders recorders, our slightly those as as the increase

as another a of we were this through QX do I’ll a one have in more chart reduction, year go follows we little employee That’s that incentives. I year. of said, other Our result cost, operating last a travel completed primarily that well in expenses that reflecting below last as detail.

deferred That’s That’s in federal carry a the We change our do laws. was as long-term tax Another the pretty on non-cash significant liability significant tax That’s books. the a credit. change quarter. Gary of tax a result this liability. mentioned

result as result a on as down the Given a the as recorded that different come fact this income liability that significant the X.X from a the to year have number, tax rate results the now combination to of rate in in that hits the a The million the using led of credit that year. then applied statement. old a income as that’s rates credit change the of operating of X.X last result our XXX,XXX significant improved reduction million the of towards and well results

some our a transaction more the year. wasn’t the prior significant is that the change metrics billed income but the transaction had in had with prior it the of The lower the XXX XXX of XXX is version count Minis. we of units big and which distorted ASP the for that terms mix that contributor included in period. In sell Middle recorded fact other reflective East to statement, is obviously the the we billed, towards lower recorders we unit recorders due to pretty that which was That that we

XX% without Middle earlier, I As East transaction. increased billings our mentioned that about recorder

East recorded related commission last decrease well The operating the Middle the had related as on other other some as marketing as to Last supplies the prior in that direction. year. external year. was that year. remaining cost a and development in was we well Our one we or of impact and some travel, associated over last a exceptionally initiatives category we took recorded was QX remaining headcount go primarily year The product that as costs included significant an transaction transaction large selling decrease based

million saw costs costs. the cost in to collections which is our in goodwill we led XXX,XXX balance that’s related that extended during associated current which greater from additional assets Our seasonal. reduction quarter general of last of costs reductions to good some and had with accounting $X sheet, administrative a and about intangibles cost offset extent terms and that accounts review and On increased and the this we our which customer other receivable, our reflect primarily impact

had corresponding the current quarters fiscal is decrease The first activity We fourth swing working improvement in reduction liabilities greater in third led in and a Working seasonal reductions in capital likewise have in cash reflects our a $X.X $X from the our in reduction. revenue to capital unearned million million and operations. quarter. a fiscal which and

current from first of cash in year. $XXX,XXX have versus of nearly the last operations cash in $XXX,XXX the used quarter operations quarter in We generated

is decrease tax of I balance in change long-term sheet significant the earlier. The mentioned course other liability the deferred

You’ll see of that the those liabilities. in reduction

XXX,XXX issuance fashion result issuances was raised completed the same we with during which in was was of the the which quarter, the preferred in had handled we that XXXX the that stock of of year. During summer November last of

that for primary the fact a transaction We had that date. for also currently similar is an we ago weeks that insider preferred once that stock we we transactions automatically. investor current The from going that accomplished those as transaction shareholder same our stock investor few being X% $X is that a for discount. transactions to approval seek preferred the will were It’s a given all had those until into that announced announced with million note sold accounted and a approval we convert shareholders the at and

the Silicon obviously consistent with the We also you’ve September That prior which of X.X have with Silicon for our XXXX. be is in Bank in with in Likewise, completion January off of balance XXXX, and that so million same been following is Valley end. Partners is Valley the debt while. year credit nearing is will that paid zero. us we for paid We term debt a balance Growth balance a full term as with our of of Bank revolving line had of of if note May now

run turn us back trends. over a I’ll So at the will through point, few of this business who to Gary the presentation

Ken. Thanks,

the think recommitments quarter first that first I combination is thing quarter of a both one and talk expansions. like – to about wins, I’d

logos which of schools pretty this. of three higher with significant this to expansion, existing to scope talk recommitments and the the the that would It’s means means new education. brand which think associated our Most customer, deals. wins you into are these chart about renewal on or divided people that’s hosting We’ve categories; adding I recognize new support see substantial. all

a took room-based project. University about example was Berkeley win. talk three the fact competitor competitor. let’s examples. us in this a of where into situation It displaced a new integrator that So a involved is an project we in The is

our which sure you’ve of pay their for of to in program business State, is recorder the because with into becomes relation is and They NC It schools is have with before. sophisticated three-year Business to in have of will I’m and cloud. win that that year the cloud each basically refresh. very XX-classroom of amortizing the School ability our every to bid Mediasite signed refreshes long-time State. than an support done We transaction recorders re-upped they’ve They’re customer. services. the the with cost due also service are that. an again Humanities on a total we The base annualized, our recognize successful centralized usage the couple the new College decided getting on name refresh a in NC a you refresh London is their for addition calls one have into that and integrators been a construction is these this they to recorder very a campus. general expanding The they a the integrators’ have They refresh. project. means business time for This What at at where is basically more if hundred of has the done commitment do their schools of video the that fee the university right a a we

also represent our provide but value the put customers. they we existing and not with second relationship our just the the strong customers two to our that support in Mediasite of the All technology continued

again Mediasite participated about systems this AV States in show. Europe and the recently the United Europe. as systems in the make we customers. partners, essentially at relationships typically standards. in expand AV to largest our technology. allows basically It that recorder conference integrated to things and this room. our much changes We to valuable family high-quality It’s to or from year’s we their connect that talk cultivate announced our AV a very world’s technologies more integration NDI to want resellers we gotten and and in and integration connections very and our allows some one or partners way other one of positive to recording between appliance addition meeting We recorder and a devices customers a a classroom to go additions I cases show highlighted that and products This with demonstrate our with flexibly really is we’ve in a and Just to the very some feedback in technology NewTek's our show. capability our flexible this direct this year’s one

to to all of We the a of spend products and also we about our various enhancements talked I’m made that a time going positioning at little show these. few of the bit

that right-sized have customers that what have about to to desire is rooms a or means aren’t content. talked classrooms our And meeting approach customer capturing all same. have We the the before

auditorium XXX, kinds them. that literally small drives room-type classrooms very lot they can to a students of cost some schools attached very be requirement in of lower auditorium meeting same sophisticated who a kind have classrooms that technology. That are XXX, classrooms like but And very of have We there’s really classrooms to capture in implement at set for point But recording have of to those would able be those classrooms XXX attending. a those also that with high-end our input much recorders.

range. And a so now we have full

their want across a the entire though recorder is also solution. And which business. of Catch that is that what appliance found customers capture really drives that our Mediasite we software campus. the for We price solution have completeness that aggressively We technology existing

many appliances, in goes equipped recording sophisticated capture want sources audio the and the that is which but price AV the that’s software important that connection server aspect are and the where lower with equipment come there to video a which is between the matter classroom either meant for of equipped on you great device prosumer can a the than RLXXX XXX something we center. capture appliance interface is where cost, we to captured of whenever remote classrooms the professionally the the to There’s an on attaching the requirements very the be so device. case environment where then content to Mini call server to that sensitive to devices recording terms published in of the RL for hosting connections to what next loss equipment the a to potential be lower in sense content of down this content aggressive server, are step that’s network And and our an capture really customers With recording one in And content. happens the connectivity our not in classrooms could our of aren’t very and of AV is what competitive no outside of and fact world because set the more later be locally the again with back. point allows a do

and So construct deploy customer that our wide a our about technology. the given that the of is really options we’ve solutions range all for we they customers as

The us demand comments other facilitate and thing to do seeing a real from And students, compose educator that and we’re means for new discussions video. student polling engagement engagement. student the to quizzes social is to take helping

optimized highly our from set Mediasite have by where release capability really addressed environment in Mediasite And communicate education. multicasting of our to that does support server mostly the see of to events through we requirement Deliver corporate software Our with X.X, latest features includes Ramp these our executives the want very that finally has rich behind-the-firewall product employees. now to our a for of that continue streaming strong customers, demand and a And to live firewall. provided communications implements customers for behind spectrum

AV how partners So also in part to we who show they are increased technology all their just interest customers at really not integrate talked our customers’ that requirements. of these the our of about on but the generating want into features meet

So to that it any to moderate remarks. prepared I’ll turn concludes the over questions. now Tammy

you. Thank

in Are First the And East the changing the is with Middle play? in market? Middle large still Middle East. question is the East deals what about

answer play. deals in yes, simple still are the the Well, is

use are these in pipeline at these play ready of Again, but frustration our wanting they new you’ve kinds to of our they transactions continues build. related before not you’ve describe timing heard to for it. those only sometimes these before fact are to attended based deals most customers are calls and both transactions and to equipment in building In if they Ken are I construction procure on because not

equipped University, So able of where since we look we’re school, buildings that preferred more of construction. And been success of we’ve I many equipment the under But driven opportunity. capture that to technology in constructed. There’s being three the to that vendor those already we’ve by that. think we Kuwait buildings forward in three buildings more tremendous are ship had have into

produce probably have when going on to set in We six the that the sure I’m some not enough They’ll close certainly are hundreds to part be pipeline of because those are Ken recorders inventory And close. to to There other is needing opportunities large-scale but time going in making Middle to always eight can ready. the East shipped. that? customer challenge has expectations of of when opportunities that in the literally another of we the lead have those result was

What Middle is with the changing East?

immediate with project. end AV that and design have Frankly, we’ve in big in customer expecting market now new of and up their a solution more approaching into actually a East hundred Middle user is the to we we rooms in between change a customers needs haven’t integrator to lot had It’s put to in that the a us couple go that paradigm has building us be when to less an productive or thing building. use There’s immediate same solution That though the seen a continues What application use. past. a application. the another actual having in seeing buy for and terms of of an to an fit ready implement difference technology contract we’re more are the when to

into kinds close. same won’t risk when because those customers detail, of examples it again, go the going and to pipeline are the We it’s to several of seeing any has more I

there University are a opportunities about In major Teikyo other lot hear Japan in but Japan? we

are. there Yes,

I level have sophisticated think example university an piece of we a use multiple I guess market. Japan focused where they high would into classrooms. our I pieces. Japan two Teikyo very dissect an always campuses. the a is because is And A very integration provide in business technology at into we

provide We other is opportunity haven’t Teikyo. yet Teikyo look to our but the technology classrooms, penetrated we all have the other forward of we and in with to in very the strong of campuses campuses, in relationship more

that several have do other universities We looking pilot are to programs.

that track. all of kind of So on continues

the quarter, to that usually But second who This our a in quarter, on due is so conferences also capture strength part they pharmaceuticals that now quarter is use industry we’re in our Japan. we the strong quarter strongest to and of historically events focus technology present. have forth

Do partners in Mediasite? like targets see Mediasite? in an that Do interest Japan goals Sony have include they sales taking you for

of country process. an have the Sony in a partner quality culture. delicate U.S. to the bids. is role associated the our whether in sales bid. it’s Japan partner. The whether technically on with it’s and facilitate Sony not our our But Japan of the obviously. earned And here is terms a or it’s of focused They’re a very quality are performance-based we in Sony straightforward is whether or their goal do them stripes Europe they is We’ve with bringing Japan. our support very existing to aggressively as additional a of question answer and challenging is technology. employees forward They products in our in not management always process, very uptake

the Asia about questions region. Pacific More

You’ve have any covered about China? Japan. updates Do you

China. bit little a about talk can I Yes,

of about develop with our exclusivity which results. their that recall that their have discussion to Chinese allow the that in fallen seeing that was to we them association China originally went into to our a will who make scope commitment with based we And had from had a on a They development You commitment enabling ability partner potential distributors, and are market. as we’ve other behind Neusoft revenue back have they revenue Chinese and obviously with us doing. willing

pursue in economical added We South Korea. opportunities to a have also very resource

change East for to look the market that. of it. timing Chinese power the to the continue lack the in we looking Middle unfortunately to of grow. So It’s understanding We terms like

And upon very have distributors is dependent our to distributor transactions. frankly or we the now level affect interest We’re those high.

past Foundry the Sonic government in forward ever going Has in been or programs? involved training

years I’m only ask speak on maybe I’ll to to Ken last that. the hesitating only because before several I and can comment

that We have in definite are a been programs conducted training some partner. usually involved through

large think we the our government have a used there’s training is directly the technology have I Sandia once defense employees. to using another of product. product secured customer example So who Sandia, been But how But totally visibility of and we have ship where entities very Sandia facilitate we into Labs or number ours. involved. actual not into the no they’re contractors it’s a is been of

but any it that. not internally you --? So for the at we lab, training yes, with connected using personnel they are are have directly Do

customers right. That’s in a used of to sold We’ve training they’re applications. number and primarily military

is consolidation lecture current the trends the for business? capture What in

seen is that market Well, I it. like guess that we what would have as big to the have we not is we as compete in

the not and it is a look people look market see they “video not of size we are our because our at what market. large very multibillion-dollar of at as they Now addressing. That’s video, capable market,” unfortunately who the business

we at change opportunities see ears are would don’t this frankly going to our to going But something’s are called fast for market the juncture. like open happy lecture direct use that a you is always capture, total that dynamic. that present We And much of line. technology the at kind eyes to our way that, for look that in you and narrow consolidation Whenever to something happen. certainly as we how market any that evidence we not are of are hear for a But absolutely fact, slice along with leader but something certainly the a slice. indicate there’s nothing see do that in growing. narrow of more we convinced we’re have that addressing would We

does Do technology? two-parter. Can a in anyone Mediasite is Join audiences? stream else Join similar video calls you conference growing a And have see demand? to This larger

three I me and answer here. three-part. one number after Remind A two number

was, do now. working believe recognize. live I we a question is that support streaming? are We It on requirement that first we The

But running of to We soon that an we will is industrial a up we wrappings environment. available as to complexity the There have and lab making product. a around strength as be that. it in complete the fair as amount enhancement that,

As of cloud we we Join part service our sell run as We you know, and Join an two modes. run in on-premise as service. Join

think in I first part be that service. the streaming introduced live the cloud would

demand second part see related was mostly remote the Join. the in The capture now a Mediasite in right We classrooms demand they it facilities I into the lecture. to we but is for virtual our technology. together believe because institution Mediasite. uniquely increasing primary educational multiple for wants reality Yes, to cobble a want requires higher class obviously single education where and it integration do that driver it the But probably that that’s a that demand Join like way with making look regular to

The have this was third anybody does technology? part else

that to think totally video regard. I many you. more are capture there in ours out of capability. the themselves Obviously of derivative We unique claim like There sources and But of capture I of gave multiple just it’s answer the allow focused lay quality kind that have vendors people conference. we’re you the a the on is that who wouldn’t Yes, video-conferencing out capture. the

continue increase to company? still Foundry mentioned impairment for see was to the it losses that has million more will Do goodwill. $XX.X call Sonic this that about in last the charges goodwill you During related

it Well, you when fair adjustment to goodwill write value. you to an make

a K.K. further number, are we that Mediasite in to write and of obviously the charge QX you the original that end only there’s took when the close of which we the in Mediasite be goodwill of XXXX. risk the category Japan. The Netherlands creators there and in adjustment. that was was of operation it Japan, The the which impairment purchases our So back MediaMission at a was the purchased in could result was

price. stock at stock we’ll watch led should initial you and we the drivers indicator review The since consistent of well all first that was can price would again. the to is has of be So stock it significant been the driver look that the December. watch that an as A that the drop price fairly

QX The year. other good we indicator in good expect to continue have is results rest forward through going results Japan and of had this them in fiscal results to the Japan.

value. So no, down fair when to risk certainly I anticipate you but it that there’s don’t write-downs have that related we’ll write further some to

able you of And these individual to break been Mediasite Join, and growth Mediasite Mediasite My out have and revenue rates growth components Are large Cloud? drivers?

have handy. figures don’t I the them for

We – period they do vary and from have seen period. to

So wouldn’t over two, offering we But say that growth significant consistent the years. to be accurate in cloud seen have three our I last they’re think.

of could Join We last on forward. have in was an it a seen seeing. lending that but growth lot we’re that so, those first revenue going certainly introduced some saw which Join and of significant certainly increase annual recurring making is licensing combination initial impact we’re year the fast I number two to in software. of a the think changes it hasn’t amount The grown towards a or significant have in growth as

for We have moving infrastructure. license annual own related toward capture license functional do a for model. for software. two product cloud for the do which one opportunity, there’s the and their And to a licensed part we’re is licenses services. our into more to have I enhancements want we would wherever is which believe cloud-based Join; are our of – add obviously flavors moving annual But more software, in that still on-premise we an I who customers an And the market and Join lecture perpetual of

coming you see in from sales current do in growth fiscal the Where year?

in is of way company. the terms about short that we answer the growth think are our The across seeing growth – almost we billings in expecting board

bit little is again a in is the can somewhat growth EMEA a area. is United some So of from as dependent presentation see talked growth growth we’ve strong see a Eastern area. in quarter We these business Japan. about Benelux the Japan. upon States The this Middle you do transactions.

will the almost I assumptions I path. on. the year mix be should every area growth we that the growth, to year going seen want entitled to say are about I are last to down some business we setting expectations were being in appliances go about that of sell. capitalize I our we plan don’t seeing we But think think cautious the that of made put for the signs when that together so of we bad that we results the we’ve recording

Going we’ve rectified that. this year into

plan good think we distribution models. recorder I a have against the of takings very various the for

segment high And will be they so there’s business anticipating think the performance. modest growth will we’re we’re of segment anticipating growth. we But where that and be performance another but no low

And the product categories, cost we continue and Right. to in quarters. lower of see definitely service our growth in terms over versions expect to

we a results. we’ll than are But see growth very more those don’t in in lower indicator significant QX. to So an seem versions. customers saw cost that interested early always be those I year-over-year believe that double

the well. we’ll the will our a And continue performer and been from Catch I that growth see continued just software. released seeing that two year-over-year that I been some we Minis. So as that’s has XXXs for or three do us annualized think the years contribute do believe Catch, We the have so growth trend cloud I in last that will a towards strong in license and believe

Right.

can Can comment this Foundry many followed think They’re webcasts I doing very for I interactivity live you when or I demand. live? watch I onto like and to value and the live the log events is on years and webinars tried sometimes Sonic webcasting of have informative great. on

a Boy, that’s nifty question. of kind

a public in that way I to small video interactive as companies use of think minority present results. the we’re technology

and my in I results minority. what want lot I I would do say. them coaching you because of think to a really that And are the go have their ever CFO remember any of we days on video IBM can Obviously to unequivocally IBM simply live there’s can’t we in room a tell at that. the don’t back people to

the give just of and number us a the we of but And think one, the the to But it’s forth. use an two rich the showcase see which present number the to have way here and because picture to, audio. opportunity we way I also so both We the see two as technology media, in the technology you slides, us. try you information to sitting

unfortunately valuable company results to The another Not is live So business we in view events has think piece. subject do public the that. altogether. that it’s do everybody earnings

of conference viewing I terms LDI also they remote terms really not use for of the content. conferences our but and partnership have technology attendees capturing we think their making and of to their on-demand the we live later the attendees with the in enjoy in just available the what content

an event. part totally agree that people added of really comment the events value would I business your does staging that So with provide for

have capital. Several additional you additional the in expect considered allowing questions in raising to near to future? you process? need about And participate the capital Do shareholders

was on. the one of that announced which tranche – We transaction executed first had

on expect we the So to tranche. do execute second

necessary we I think we would we if we decide the haven’t in do terms it’s on in take of it. the what that future, avenue expect concluded to

loan We a infrastructure. small look amount hosting of used the potentially words, other gear for in we capital have. to could acquisitions our for could make loans that look the So increasing leases well. towards to that to additional we or extent in have at a of need evaluate additional we We two lesser used could as equity term term to any terms that we

have place I allowing improve done amount in the that at and payoff of sheet. debt think we’ve a pretty transactions the put us this that to in point balance good us

their Silicon is very would with to Valley I with finance Bank add companies cash We requirements, pursue a did two Historically, of that. financing kind path years three about lots deal ago, very guess a loans years do. different of Growth ago? go you’ve have seen receivables. things again use of different standard I for revolver down Partners that right. you to us what, been thing avenues common term our to for The The

Yes, it was three about ago. years

with Right. what And sources total come we of warrants other has financing capital to that round financing with lending evaluate kind We competitive latest and have stock through of style be. cost did you of financing. would frankly preferred the the was that think that of it that of

of with what we’ve So pleased very results we’re the done.

I said. I echo Ken what would think

whenever for activities. – we or most the for to vehicle will those have requirement purchase equipment looking we think We’re a fund attractive we look whatever, either

is as online been in of Chegg UX been it as particular education Why companies services such areas is disconnect? successful lecture the in Why online their successful? capture quite and have delivering that and companies haven’t

Well, going my what of really handful only I I’m capture offer opinion opinion. an focus think a and it’s who or pure lecture personal I’ll on There’s providers to call content video management.

for them. – technology market. students capturing is to of market was audience That customer two? the do and We’re or or business the whoever addressing buying the make associates what kind the to commitment a to like same one content that. we’re direct And Companies requires the of all

UX. and Chegg

don’t outsource pieces a UX is tutor composition their a to essence customers and model the the a not their they service just but of lot education of service. broader to lecture outsource administrative capture lecture also old They provide provide in the education. as

concept capture. that person-to-person life company now students Again mentioned for is out lecture a think than other really into rental I company different university tutoring has that providing you video. of started as and the the very book graduated using

So that with our products compete do. what and address we don’t doesn’t really market that

thought Has video new operational in and order any take another opportunities? platform there been enterprise with synergies technical of advantage merging provider market and of to

value. earlier, As to enhance don’t possibility said preclude I any we shareholder

to to kind a if we’ve nothing parties identified do that be have pursue you’re actively do opportunities, that done to pursue we’ve we confident little you it in ears think involved – with that our target them where the we’ll eyes always and it. to aggressive to pursue how done I that’s pretty We’ve an we’ve want transaction, keep the of very not working going action it that. and but open got done fit. that take to to company actively We’ll a right

Can you second guidance for color the any quarter? give on

yes; specific no. numbers, Color,

first was the outcome quarter think I a us. very pleasant for

our to I plan. I expectation. are overset internal on I first second – want is not since think would would and second quarters, to not the strongest anybody’s quarter the ever quarter track our

year it does realistic and is for account not quite plan this Our a lot of growth.

was better the still terms slightly actually right. in QX. That’s of early plan. And than our in we’re QX quarter

that pushing towards the So happens our we’re precise we’re achieving we’re – even know the not in ready lot don’t we But QX. guidance, quarter certainly plan to if of end a provide yet. at

quarter and us we is track for increment. very rare It XX-day on have it to based during performance a

have quarter revenue greater XX, of during XX we XX, idea the we cetera. reviews et So day you revenue for XX, day to the is how of end quarter. XX% It some than give just that develop day is day our almost unheard of

that Ken doesn’t plan. So the about of I terribly it quarter. get we’re when we say indicator good is excited the something or not necessary It’s full it predict a ahead for but outcome

current look spending CapEx the for the does year? like What

this It’s modest ongoing. any yet. leads at identified don’t That’s spending. big point capital that we’ve We have for

not delivery it’s nothing product at anything that average. last we certainly ways did even what of years our of So the into we build and though had plan, to look improve over in continue than significant so more not services. But the significant, on can plan customer couple we the we’ve

complex. our [ph] the for And that biggest processors buying hosting Del driver is of

sometimes recorders for it’s XXX,XXX, our Right. It’s well. up providing that adds as XXX,XXX. to and That area events

questions. further no are There Okay.

for Well, thank your questions. you all

one. quarter with As this probably presentation on in see I that days we’ll for Thanks about my time and the again. next XX in you said means start, the we’re

Thank you.