Qad (QADA) 20 Mar 192019 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the QAD Fiscal 2019 Fourth Quarter Financial Results Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. [Operator Instructions] As a reminder, the conference is being recorded. conference Chief the Bellamy. Officer, turn now over Accounting to, Kara I’ll go Please ahead.

welcome today’s everybody, to Hello, and call.

statements on the obligation begin, that forward-looking our call. forward-looking everybody reflect we actual statements understands update these are or Before I’d results risks that discussion like are subject may and cause from analyses. events expectations and certain could revise circumstances to to differ ensure that Such based uncertainties materially this those statements to to date anticipated. that to QAD or after undertakes of no contain forward-looking

SEC these For non-GAAP a and complete and pretax income, during this refer description XX-Q that the note of to and press QAD’s financial which A Securities filings website. call also with the is risks XX-K the we most discussing please company’s be is measure Please G. this Commission. financial Exchange is by uncertainties, measure release, today’s will GAAP defined as included measure Regulation non-GAAP non-GAAP in which directly to of reconciliation on a posted comparable

Now, the to Anton CEO, new call I’d turn our Chilton. over to like

full-year you, afternoon and thank and to discuss you Thank QAD’s fiscal Kara. fourth quarter joining today’s XXXX for Good call results.

our the President; on Pam Officer. Daniel call me Financial are Lender Chief Joining and Lopker,

As sad CEO is loss you may Lopker. my very know, as following last Karl the this first call year of

discuss I’ll a results. it change. allowed transition in and the to smooth has operations. now team leadership continue drive has our very executive the financial and to The over experience our However, effective been I continuity it turn business to Daniel say must management following of our the us that of team top our

revenue Total revenue. pre-tax with to higher Anton. due Subscription expectations, profit you, exceeded on and guidance. target license revenue was Thank

otherwise constant negligible. noted. to million, growth unless with was revenue a bottom are given was revenue, For XX.X negative on quarter, year currency X%. we million XX.X impact the XX% our of had compared a last from line the currency comments compared with to our in about QX, being November constant conversions and up and a was currency with impact Fourth year on X.X basis XX quarter added and million customers ago. the basis fourth year a XX% revenue grew to XX% XX XX% XX the In cloud Subscription prior increased and margins quarter brand-new. business. of for Subscription those the was revenue

and year. the For the revenue year, X% million, professional point Subscription year by for our to total grew to to up revenue Subscriptions by million, subscription margins growth improved X XX% last expectations. XXX million XX.X increased significantly driven XX.X percentage XX% in services. from exceeding XX%, from

both from on-premises fourth convergence about and in Maintenance and expect to we and driven last cloud We endeavor from required. was improve to software’s further X%, on business per to investments were full-year other the mostly X% as by quarter to down this may revenues of to our will be year, see a by year's shift service. decline X% continue basis. and to variability some but area The the

revenue quarter. services project. compared million year's Professional year last was four The continue. with to trend fourth implementation XX.X large this a expect We our of included million, multi-cycle prior XX.X

projects resulted of services fewer the XXXX we large the mainly first to With backlog. weaker lower in as to our large expected business that and the profit for full-year. later the breakeven quarter small passed close revenue a in business. XXXX, In in the half revenue fiscal we with implementation to in about closed expect EMEA margins quarter fiscal to resumed Services fourth last were have the expected decline of implementation XX%. The QX. this services for As year, discussed, during due is in and services achieved completion a previously finish combined the quarter

quarter and the buy be We licenses revenue License flat in XX%. total in and vertical the growth business. million. was for than XX Total for last food North revenue about consumer and expect industrial, XXXX the products than and compared greater automotive, sciences, XX%; fiscal a beverage, customers loss revenue was year XX%; fourth fourth By by geography, margins first support the was and to XX% high-tech as XX%; at to from and XX%; XX%; fourth to business. for XX%; America, quarter to year. in quarter, we the additional with productivity grew the Latin X% America, existing for improved the mainly in cloud XXX,XXX breakeven gains one their X%. our continue due the we EMEA, Pacific, achieved to margin deals XX%, XX% on prior and premises Asia closed our and year license to greater Gross In the life quarter, year

by and sales million in ASC versus the higher decline costs. a to partly totaled commission to Our year, due marketing XX.X offset adoption of million expense personnel XX.X last due XXX expense,

and of fourth and last million administrative XXXX General expense revenue and year. of lower last million or X.X to fourth for expenses total compared compensation stock fourth versus development X.X higher total R&D primarily sales completion period year. for XX% marketing revenue, FY XX% the Stock Channel year. percentage was expense of or costs and compensation both quarter last for of XX% The quarter year. last was The decrease fiscal subcontractors, XXXX million and of a was last related and XXXX the with year. million total of and advanced driven bonuses. expense supporting personnel the XX% fiscal higher million million revenue expense As for X.X XX% technologies. was revenue, was Islands by XX.X quarter the the XX% XX.X XXXX and X.X R&D in was increase the

million For the expense year, stock million. XX.X was compensation versus X.X

a quarter of X.X income year. versus GAAP year million XXX,XXX for million fourth year for versus was GAAP Our year's a Non-GAAP million million, a pre-tax pre-tax of X ago. loss loss with pre-tax was was a the of income our last million loss compared pre-tax last X.X and X pre-tax XX.X income

the in For QAD million totaled the share or $X.XX share income X.X ago. Class an last $X.XX X.X the for share for tax loss per of was utilization million X.X million fiscal of A expense Class $X.XX tax $X.XX of diluted and non-GAAP we net prior or last accrued Class diluted year. year. versus B the of one-time A per million or B Class mandatory versus last X $X.XX tax related totaled A per net per X.X million with XX.X U.S. resulted recording, B pre-tax $X.X one X.X through share, recorded for or $X.XX XXXX. diluted of per year, GAAP B We year tax was year, $X.XX XXXX, benefit million million credits, X.X year, In GAAP And and net for the million A tax XXX,XXX $X.XX class income further and net income year. GAAP the million the The and year expense repatriation. per in a compared million a of to with compared prior year share fiscal reform loss in income final XX.X and foreign calculation Class estimate calculation per of

the year For XXX.X ended fiscal X million. end compared fiscal in XXXX, the cash of We million we expect of with expense approximately million with equivalents, and XXXX. tax at XXX

million year, revenue XX for the in growth improved flow million Our XXXX, last fiscal with improved operations compared to reflecting from margins. continued and cash XX.X subscription

Our with million, million accounts the compared XXXX. at XX.X of receivable was XX.X fiscal end

healthy XX for versus fiscal days for outstanding XX period was XXXX fourth receivables. same using the quarter practices reflecting days DSOs and Our the count last year, back collection method the good

short-term licenses of X.X deferred on deferred XX XX of Our deferred million XX subscription professional X.X January balance ago, XXX.X was versus X.X versus of XX.X maintenance, versus year of it versus includes XX million million million. deferred million fees million XXX.X million X.X revenue versus and a million, and deferred million, million

maintenance our built annually and are be built recall, may subscription you can either quarterly. annually contracts If or contracts

providing Given subscription we the be growth practices, subscription statistics. our billings of annual variability will billing

XX% XX XXXX our up rate annual now revenue grew subscription XX%. XXX the our subscription run with subscription our billings months, financial for at And reached billings our finish I'll three-year mark. Over last review growth CAGR million guidance. by my the with has

last the our the immaturity and during will FY beginning revenue the of due funnel subscription slow the XXXX. fiscal growth quarter's this. the guidance exceptional anticipate we business And to flows enter mentioned we XXXX I of fiscal As that of at XXXX, at call, as end the into reflects

that, reaccelerate We software million. around revenue expect With pre-tax business. subscription the toward X cloud the our of first including quarters to during revenue we're subscription of have loss growth continued XXXX growth the million, decline and X mentioned to pre-tax With despite non-GAAP GAAP approaching FY flat shift relatively XX professional of licenses growth of to services of we to million quarter, to line million a business million XX X and top of of first to XX%. the a end and from million, million XX.X earlier and X that XXXX XX for million. revenue the expect I overall loss in few to service, XX% expecting revenue

including of approximately to XX Anton. that, anticipate For to of XXX you GAAP to XXX to a of subscription million With pre-tax the of pre-tax we revenue million. XXX break-even XX non-GAAP year, million, full million million, million XXX revenue a income back and

Thank you, Daniel.

to the new leadership our with exceeds the fourth conversion continue product the several XX% So from cloud. about opportunity the of market XX% the cloud new wins. business opportunity of from last market share customers the the year, quarter from customers cloud new with of came available us existing increases important far In in our growth saw conversions, and our particularly future. customers from driving on-premise business Clearly,

away emphasis on competitors. from new to increase winning continue will We customers our our

our the both geography. we and about I'd cloud one-third capabilities. of as like to solution came to most market, highlights existing customers to added cloud addition the additional our of the capacity North businesses. had additional year, our In business a America, from on-premise review cloud finish now some mature in by or new strong they customers,

could the regions. cloud quarters. to cloud our fastest designed year, acceleration however, management of business number EMEA, and experienced from had execution over suffering both of changes Pacific Latin signal America back get Asia couple a various implemented in EMEA of the and track those adoption We've a in next an on disappointing already growth the issues. this

record the while solid did and and well, their DynaSys performed both performance they XXXX. I'm a the in solutions. have team of cloud particularly pleased growth accounts of funnel significant impressive prior for not the FY they match Precision advancement year, showed and divisions, strategic Our our in which built with

is and strong. CP, expect do we funnel through food cloud to sciences Looking reaccelerate at electronics our industrial and in verticals, perform behind. business and to automotive Globally, XXXX well, growth lagged continue our life and as while FY beverage our

month In of in we've bookings prior year in achieved met first quarter, quarter. fact, the the one first our already

Our to generally the constant of experience. to available machine user In to will class a our as a low-code enabling critical This real solution also industry significant planning last visibility In continuing This operations Channel solutions ever-accelerating is for production context. three-year driving our at we've too. our time we've Difficulty] rate. capability XX where grow, of those with with customers. conjunction and decision XX applications plan an where sees and [Technical pace. payoff be we a applications transforming of our world description driving personalized pleased challenges momentum world in improved of applying efficiency QAD that and We've live. continues to now efforts to customers, business have progress labs and as already platform customers made initiatives, machines QAD a With to excess XX% processes. cloud even have enterprise today, thrive well adapt manufacturing real in business been margins provides of cloud our customers portfolio, that cloud product We're anytime. the in revenues to information, the deploying We cloud Islands, time, in Serving accessible solution to as automation seen currently anywhere, up our with support respect Channel delivers our continuous discrete digital our processes in business. personalize as in also growth in annualized Islands tomorrow. extend is and work a connecting flexibility improve no-code customers the forecasting [indiscernible] to is kind develop also status on help launched AI providing learning delivered and year, QAD transformation with to applications the customers a

R&D to continue will invest in areas. these effort We

year. Looking time ahead, last the is in our strong grow to continues same the up funnel cloud looking comparison to and with XX% value

marketing and business back support to in globally on the as growth expect our increase growth capacity services goals. we we shape. generation the regains We our year continue end that professional And to recover to of lead expect sales with as business in a focus EMEA our those

in our combined investments R&D have material making in XXXX. capabilities sales an are enhancing will our we're investments to We impact fiscal when globally, making which profitability with in

developing front, training and We're we're lead generation capability, as field extensive the methodology processes. organizational sales in extended an increasing sales On sales global inside as our with coupling this our force. well on

cloud to cyber Our with impressive as availability being solution world-class with security physical strength-to-strength continues from well application performance standards. go as and in numbers, compliant

around over our extending half reach capability a more and of And Pam? year. this of launch Pam. global in over platform. now our business the that, the little We the about will to second data with go enterprise talk also in a cloud center she'll I'll With details hand be more China

Anton. Thanks

me, Okay. can hear You right?

for So, customers ERP that year new a years since conversions XXXX. to customers, sold We FY XX year. started XX customers, Cloud This XX were those Of FY XX was in were from XXXX gain on-premise. ago watershed XXXX selling XX-fold FY increase five QAD new XX in Cloud. cloud plus we and year and customers

offering very of a terms now and QAD most growth the an stages cloud. at rate mid-size architecture customer report, Its reference ERPs modular for their technology, their roadmap has starting for satisfaction run reported a large well of overall where for is of strong QAD it and definitely of response moved high Cloud operational where October first published loyal at placed QAD the ERP, year $XXX support from a and positions has to It's a this stated for enterprises. excess Quadrant In was issues. the are XX, We Gartner in QAD with million and On future. customer base. the Gartner Magic XXXX, to engine visionary. scored as have extremely

could they expected, few Gartner for references also As our a mentioned technology. new only find

to enterprise generation partner platform, requirements name QAD So, references. low-code, year, releasing internal with and the ERP years. today that is adaptive requirements our standard enterprises it built QAD system that as that on rollout delivering a and be which that QAD that this new is enables their product next a the adaptive is set now a this XX implement adapts – no-code has time, our evolving longer our of we prudent then depth to to a and delivers that. sell survive continuous to which and out. next applications, markets quick with component where is system QAD the to mention ERP should thrive, project in support extend will Channel been a we the provides practices need Well, be They No future I their we this build always in enterprise our that the customers even name to their customers the ERP disruption greater the here adapt those basically Island ERP, to business the to Cloud that gaining standard focused install past, on is At provide since product install and respond needs. that QAD response and way needs Channel under can Island, industry for in operations, QAD adapted [indiscernible] the Fundamentally, and in we serve and application business solution the that for change being a expect an and disrupted. customers business on are manufacture it adaptable and effectively been to change need QAD change rapid system has in adapted rapidly continues and basis. to while to takes need and for environment. years a utilizing partners To run in ERP accelerating. will best provides ability manufacturing our

platform enhancements same the is to products In for general building fact, release. on that our future QAD

technology. an change So, really in amazing

from So, and intuitive device our no any enables efficient an client customers site the code. any fashion location and to from QAD access in an adaptive interface download employees ERP application or requiring

QAD expect provide come. foundation years that that the application for adaptive will to the We last will

products, continuing up-time. technologies it learning, to point like in data of providing It manner. is be market manufacturing lakes robust machine enterprises be spearheaded Cloud via build quickly and Many ERP emerging will a to We XXX% controlled areas and the that not Unlike will XXX% and in many digital twins. in them to to with cloud requirements and a is complex or exploiting solution. Labs, efficient near foundation on these Enterprise QAD allows a us needs QAD bring solution, be per

did years just but a decade could ago, industrial companies for both the complex For solutions, cloud not for cloud. that serve. this be even for think and we to accomplished financial felt in we that manufacturing this Contrary thinking, analysts was ERPs not the point future,

embracing see ERP to our Given Thanks technologies Back to and years here next ERPs on. take our great so XX it feels new technologies. we the in market. certainly achieved. the the our It this ours took in forward XX for manufacturing and history success we much. record Anton. be and as Cloud later of to that was track really to we move exploit looking capabilities you, our fast and I'm years and

Thank you, Pam.

our funnel a So, we're capabilities sales investing and strong capacity business. deliver new to we in marketing and have a

see the period in is the this growth navigate serve, change to uniquely ourselves we When senior and digital with solution cloud pervasive to of and executive of help business. we driving our that’s uncertainty. portfolio management completely industries at that transformation Our the disruption manufacturers compensation aligned look capability, we placed and

customer wins providing our for leadership that about future new with a gains, QAD. of driving the growth. for growth We're basis market is confident next position share and solutions excited and cloud strong continued the phase have We

you We questions? the will now please for could instructions take questions live. give Operator,

question Instructions] from Sidoti and Company. Our come go ahead. Please [ph] first [Operator will with Certainly. Mr. Farooq

had Daniel, Hi. taking I Thanks regarding my you. question the for guidance. is question maybe for this question, a

revenues guidance your because in for am fiscal it they're growth sort going of flat terms assumes will I it be like In be year-over-year? of expenses your or wrong reading XXXX, there to that look

correct. that's Yes,

services the revenue the and do is expect the business my the remarks, prepared a we to and as I decline the mentioned that On our during given side, in there to line down, despite on-premises is we – business. maintenance coming top professional shifting – fact relatively we the as that licenses the is see cloud, growth subscription business from be flat in will natural

we making of So, marketing as R&D. that a our are Anton both investments sales on and mentioned number and

spending sales We're On XXX over in adding account-based X what marketing side, in planning that call and – marketing we we're the add the and group. close advertising. to we're to million people

continue we'll side, R&D to technologies. develop as the Channel our well advanced the On Islands, as

professional plus XX in So, area. there's about headcount additional those fees

areas So, those are investments. the see additional to two you're where going some main

one if I more follow-up, may. And Okay.

going be statistics. to think growth you future? you're the be key a – that's that a going mentioned Is billings gauge investors do QAD's toward for You that to to to evaluate, shifting growth metric for get in

a that. absolutely. will key metric we and be It providing Yes, is

months our on XX% grew I last a As mentioned, the XX%. XX basis growth subscription was by and the three-year over billings

Thank you.

Sure.

William Please come Blair. Suri the question Bhavan next with ahead. Our go from will

Anton you guess the love you airport, questions, some macro? did to even is maybe would be, as join – But what the and and of for for used EMEA. thanks globally have global you're impact seen color Pam, hear EMEA, to can slowdown You at any you I tariffs in more automotive what Hi sort look for impact color and about China, discrete love with, and little the XX be understand in China? to when for are any to hear what fiscal and there? not on apologize my trending economy, background may – love to your manufacturing talk seeing at start of seeing tied off look try noise. taking but see then happened outlook macro the you macro it years guys, so in I macro I'm would how I'd the maybe if you Just even for manufacturing to and to so you're

expectations a that of Yes, take customers, around in on Right, and think sure, impact is I it can the has tariffs there what's uncertainty the we going generally China. as of flowed we not heavily do can parts into lot said, in of year. area various this in our through and with this around I that more I'd say Bhavan. an obviously, world. is investing what we're our That part year Indeed, see funnel

that was a about going. of is part So, marketing organization. we economy that's On was there specific is still see pretty opportunity issue, where that and believe the investment more manufacturing the to question, healthy. sales we a execution – QAD market EMEA, your economy That the don't that, within

for a So, we've of who's the and taken Gardner, our place division led We've in years. over leader successfully to the changes. put make QAD time been there, long part a some few last opportunity new precision a Steve

to with but bit industry we're we vehicle that year a expecting this sales engine the firing there's seeing see sales in bright So, on get nervousness certainly too. cylinders automotive market down, more and through – We all in little marketing spots that. the him

there's funnel the overall seen not So, that are moment. people times to – growth we've flow I'd at people – about the but talking pipeline say impact them, our are uncertain through

sort visibility half. you half that get how guide, I'll confidence then, else the everything the the first at half calls, closures or of Okay, that – the and at and – much that I invoicing you've you even do for in of But even you of second at and have a just But that, look second. certain you things sort in is for about QX to I when amount when good to about the shape deal the earnings reacceleration? look year. that's timing which guess and it ask guide you you I did bag guess do you confidence been to and of occur? look a where discussed and you second you subscription, happen like last existing and in versus have I a Like quarter feel this [indiscernible] didn't talked it, month we have You in of in you a one or month how so obviously see quarter year the that could duration, reacceleration? visibility has to of some booked much closing, feel

good about feeling We're the pipeline.

As been that you has cloud too. in by Global said that our or of and to overall putting over do Head work of I generation And the said point, in a and part up last organization growth successfully QAD Ed’s my Sales, go more led time was prepared we've Again, and American and long That's North to capability still Ed statement, XX%. obviously to Boclair. few There's appointed spearheaded out the investment capacity business. a of new funnel years. the is for funnel. And close part Ed that's actually the place the organization in lead that

So, a competitor’s we're where around into some We've basis. some on business to dividends. appointments made development, expecting really of senior our pay we focus penetrating that have

that going the cloud after QAD the would and from we believe that so, we have. accounts And solutions specific benefit offerings

and that drive business. what the and in in and put go that we're growth to the with state go funnel with building we've the and confident that people of we're place – behind So, to

Got it. Ed [indiscernible]. Got Congrats it.

the guess and maybe, despite turning If little it's sort subscription model, of to the it's at of a million. I for look the I lower bit the QX, if financials. we'd now than guidance I promotion look look half, sort $X of full-year guidance, about by acceleration but stronger I’d – So, expected like, back nice Ed. at at of

like below or moving I XX is probably Daniel subscription, at Anton [down if but maybe feels Services number maybe revenue there. And by And using So, through parts subscription X]. our so it consensus I'm will full-year million, million. like walk guidance XX and look the impact estimates in. the jump us that's

investors those So, I help it follow-up. then moving maybe look I've me wrong, so And one that and through for more does have like? think maybe just parts got what

I'll Bhavan, sure, Sure, Yes. cover that.

we to and ago So, subscription sell as a today. on already basically quarter first the well side, see we're of expected the mentioned as on last quarter, call that part still slower on my seeing the year what growth the in we – that and

mentioned earlier, north our billings, I as overall in growth the subscription just of mark. XX% our So,

over expect few that growth we to quarters, So, not the to accelerate. first

expect at the We that the growth accelerate year. of to end

that that's where a we mechanical from subscription So revenue the going. standpoint, see

if the quarters probably the probably, expect to bit there, were out of end what back that say the mentioned, seeing But, first would models toward as So, to look I the we're may at high, be I compared – the earlier I might year, of year regard the there. very mentioned, we business, be services a today. we a to standpoint as expect the following the for from be XX% professional getting line, top close overall decline year I or a good a revenue to With the in also. so that to XX% mark us again and position about putting revenue, would

last In mainly maintenance continue this on-premises is year business decline driven implementations the will maintenance converting down it addition where and was come to our from to to that cloud. by our that,

– a rates business very, remain then actually the cancellation And is our – actually as at levels. historical So, to healthy. shifting also as business we re-up They're cloud, as well. the very decline from the will that is basis, are business licenses

for So, up in year. that quite combination growth revenue of the this three make although subscription declines lines, doesn't and

my touches follow that on then And it. up. Got

a of I more driving need Xx next do sort Is support to of said and existing the could upside growth discussed but and maintenance new that think coming and need to customers that? mix quite really lot not to that needs this out actually Anton get add you've new to you think, bit, growth you not in you year, new does kind customers, do think new between about maintain and customers combination? XX-XX. I have if that customers? to small this that deals, to pipeline, existing or I on customers and it think or three growth, it's XX% think like if which to look over in mix two So, Ed But even XX-XX years we've how do year sustain to you about what the we XX% think about XX% go think the you about a up, more same today,

Yes.

me Anton let start for question, let to So, me that additional then pass it I'll with color. over

of potential we generally, think, customers. tremendous terms new are I seeing in now

Over shift be that to So, a new I continue XX-XX emphasis, believe, shift, a I it think – new will of that and from percentage time combination greater to customers. that will customers. both to conversions

Pam quoted a and basis customers – we XXXX of year, a conversion of customers, In number seeing greater Anton I'm comments. will in of terms and did great than have this year already customers number already we new in a we've customer this number sure in to add my – a fact, of on FY

I fairly big on-premise I long is in expect good a tail to install areas. that with in think, on absolutely. mean, both do base line Yes, that at, to too. short, those potential be the we go We left this, obviously but have a

placed, manufacturers With that those pretty of maintain – uniquely changes flexible factor get now, think growth the all platform product that an we large be as much of and technology, of speed my at that platform to is try we capability where for unprecedented view, levels deployment is meet target rates, a combination are in these and they we to will have. we more right on global And the see coming. we have, new so, business the of a disruptions the enterprise important these and

to there an go and we competitor's us and new base, grab so, those for clients. see go and opportunity target And there's our

and – I support says. Daniel So what

next see over the I base think, few too. percentage for big more but of favor shift we'll there's in to years, years in the that the install business, many come still opportunity new

my it. Got color. you and it. for guys, Thanks taking the Got questions, for thank

Thanks, Bhavan.

Please ahead. to Zach with now Cummins go We'll you. Thank FBR. Riley B. go

afternoon. question. Hi. taking Good Thanks my for

half actions talk that that region? talk you of leadership some can EMEA issues XXXX? have in the I but know of get some other to to So, planned rebound you've more the about kind can you you in second changes, of the business about made the

I Sure can that. Zach, yes, absolutely, take

really yes, and sales and the our there, in sales over had some shrinkage lead force. those activities side generation we the execution So, in we saw on

direct acquisition of a different supporting adoption global, approach generation the addition going marked new and taken a the sales is of that'll number team, regions. stronger and both sales growing rolling And created sales the positions, to out] of level corporate to be we is helping where new lead capability. in all we've what there inside with I new too. taking [Ed lead that across which people capability And marketing, call Steve our think then nurturing to very as actions the in around effect. We've to it And we're our looking that's a our in new have with with ability are enablement a And investing that finally so, generation heavily a and adopted well how We're pulling marketing executives. addition of sales there's position Gardner. account-based support we've management. global processes drive much with will consistency of as marketing, we function, an process the Also, methods at in sales

So, of of so have this we towards regions those track. realized to end the that back on year, we'll but in globally, the the benefits get benefits expect all particularly back EMEA, will across see

focus taking past Understood, seen couple changes your from is the sounds customers now of there terms that's that some a of you've any been the really competitive context. shifting like quarters? competitive away landscape major landscape, over in the the helpful Has of competitors. to in And it then more your of

there. couple and customers over past take I with not time, over I'd just as And away are coming but of manufacturers. quarters, you just that X, global XX-year is the seen projects, what mean, we've if right. changes moving larger automotive particularly all the in the changes huge say, from example, market an the implementation in

the years. it's of in, are on. can't connected electrification cycles vehicles, being spanned really chain, and that how and kinds software XX proliferation so implementation of to to bought and rapidly And X, that afford that of what's be companies and made. pressure, kind to in being those for it's vehicles they OEMs entire of vehicles New coming changing supply The in adapt

of that XX roll so, to And we we've hundreds out We it. tens and literally know proven in we can sites do months. can

pressures these new those extremely in as we to changes to competitive the they our general. need allows think allow to flexibility those from enterprise pressures and the in platform will And to so, see and that deploy they keep customers consumers adapting with then with technology new new – rapidly, got industry but platform, making they've the

growing ERP really [Indiscernible] what competitors with ERP retreating offering been it seems I are larger to traditionally say companies that a kind to in has struggling cloud viable that point solutions. the come up our instead of

basis, companies on in position. that want I particularly we're Thanks. do for think global solution, excellent an the So, cloud

then and me. for final question Great,

What's out what's QAD the plan customers really that live gone customers this applications to going kind started this You’ve the adaptive roll gotten forward? of sort out more to from really then feedback rolled aggressively the customers some to at of early and point. the and of have your you've get of

is So, the of some in the both initial feedback experience. terms of great, user

application important. with decisions or our having another and like The leave rich time. solution capability, real or make really helping That's without informed that. like in go to to get they're application is to of well to personalized business So, quick things the able accessibility information out as or excel intelligence analytics embedded the something

machines think, to are I adopters of with. and the the the status status in of added right process just we're increasing execution, things throughout the production we've – that surface – visibility something floor production of platform. technology on advanced down stuff, power starting As so our customers with the of then, shop are manufacturing of like of enterprise we're that early the that's to entire the scratch the And delighted course, the process that

build talked the of future, context. ability upgrade ability Safeguarding the the new about powerful. or application no-code that's application be the applications extend for to earlier, low-code, we to business and going the in something really a even As I it's think

just in the so, that. And of stages we're early

customers rollout some a targets launching year aggressively the May and on this pickup the year So, perspective, to – we've lines probably have of out at early and from proving XX QAD Solutions period. moving going in the we're that enterprise Explore we to program then that be this had set adopter through our build platform have, Orleans. in New event channel to our upwards capability and And Adaptive through

luck Understood. coming the thanks questions, color my taking and very helpful in year. good and again that's for Well,

Zach. Thanks

you, Thank Zach.

question Ryback from ahead. go Stifel. next Brad with will Thank you. And come Please

very Thanks in of are platform, Great. a accelerate to much. position Channel the Anton, Islands completion with now the you activity? M&A

and look We're add to and to look continue footprint that will solutions our M&A at functional customers our really solution want for to our certainly of – enhance remain consistent to activity and application. – going be complementary we core the the that value policy

to So, for yes, an be we're something it's ongoing sure basis. looking going at on

on of follow Thanks. Great, XX-XX what and while be sense you one the up, existing customer billing may account cloud is side? us of a new quick can of, sort give growth, versus

Yes, sure Brad.

conversions the billing revenue in On side, bring initially. the more

about new XX-XX, customers. conversions it's about So with even to though regards a XX-XX it's to

revenue all take customers time. to New and the just longer bring over deploy

much. Great. very Thank you

Sure.

time, Chilton. turn this Thank like back Anton the conference to you. to And at I'd

and And May your attendance Okay. Good for you updating Well, quarter to questions. for everybody, in our bye your thank results. look first again you with we forward now.

on p.m. this replay after today conference for Ladies March and available midnight Wednesday, XX. X:XX be will gentlemen, through

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