Qad (QADA) 27 May 202021 Q1 Earnings call transcript

Good afternoon and welcome to the QAD Financial Results for First Quarter of Fiscal Year 2021 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Kara Bellamy, Chief Accounting Officer. ahead. go Please

welcome and call. Hello, to everyone, today's

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

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

the call Anton CEO, Chilton. over our to turn I'll Now

thank Kara. for afternoon and quarter discuss you 'XX you, Thank to joining today's results. QAD's fiscal Good call first

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

global of in coming say, I and of countries to world I'm up driven year, force. This good recurring business. pandemic around QAD responded. the compared the which year. numbers momentum dramatically which of means have and Following strong our on incredibly change from to the a last as we total our we finished the accounts team to a period stay-at-home growth into good increasing way growth quarter, proud lockdown XX% with with constant shelter-in-place, XX% competitive the hitting the basis a From for revenues currency last now this saw orders responded same subscription of acceleration by position guidance mid-March, on

and wellbeing our their communities. health our firstly respective Our of the customers and priorities to safeguard employees, and were families

wanted That embraced feedback. work X% who of customers, year, a the combined project in X% for both period and year's to goals, professional improvements in first helps quarter. complete This support almost remote of came through working of initiatives with and ensure to we've improvements pleased year. the compared service the great with cloud uncertainty the first combined healthy levels. while continuity expense with with negative performance and projects implementation quarter opportunity for on fore progress. services automation or performing through upgrade to that we I'm no our professional those of interruption to those Work dip of the saw in methodology overnight result say on exemplified as margins adoption continuity in this also Secondly, in for focus achieved line effects switching our services bottom last we remote operating customers management and experience transformation with this digital last service increased significant drive us or period compared gave an our in by the work growth of upgraded a model, change started last to

discuss positioned it the over good strategic results. the While in confident Daniel financial shape, is the and in COVID-XX our uncertain, long-term of the remain business we I'll turn of short-to-medium targets. detail term effects remain the well we're achieve pandemic to to to our

we and prior by Licenses environment, over our environment, in us our were a post margins. both On deliver margins ability and support challenging basis, affected compared year's Currency revenue, implemented negative had enabled Subscription most saw you, actions and XXXX, impact customers as projects constant for fourth point forecasting professional a existing expected. to X.X resulted services which to year. current bottom-line compared expense a last improvement or to in business not the million last remotely the which of we to were customers X% first needing X profitability we a X improvement came on year. purposes. The successful maintenance a control the percentage add currency with subscription when in Even million quarter, use Thank quarter fiscal revenue total Anton. showed compared negative with users. and as impact

and revenue, we a year our declined first of and subscription quarter, CAGR subscription X X.X of million movements, a and quarter XX% a 'XX XX.X compare anticipated customers. quarter. with rolling by million from That professional compares cloud were deals million quarter the maintenance to same resulting last of there that declines million prior XX%. signed an We as currency and and conversions consistent the as year COVID-XX movement in partially was of currency revenue. licensed was movements the services, billings last offset three XX% of XXX,XXX On basis, our basis for crisis and as grew Maintenance cloud attrition million gains During of new movements which revenue by that currency revenue and pandemics, rate compared The quarter on to last decline relating year in year. were not same currency forecast. XX.X same a X.X within a and million currency for mainly a Total revenue X declined by Subscription incorporated were historical 'XX with XX.X XXX,XXX. the deals XX and a was mid-quarter remains grew result in the to with XX quarter in result periods. fiscal revenue subscription of were negatively into not the affected quarter X FY material created for anticipated the XX-month which constant experienced anticipated XX% which conversions, result to the accounted our with exchanges in first of business

million sequential year's rates. methodology been XXX,XXX pleased that We're offsetting that to enable implementation remain Professional movements. no services million transformation with currency revenue In as XX.X business addition, of despite was partner organization, already compared to longer up reduction million ability we our for year ago. and quarter was of first X%, professional and improve the remotely. Services the quarter. 'XX XXX% designed from X.X attrition licenses deliver good negative year, X% strategy see the X.X fiscal delivery services enhanced prior margin ongoing for a there expanding negative consistent in 'XX around effects network our totaled remote time our fiscal compared had with revenue to in million, QAD's for to and the sales License a lower Compared equaled quarter quarter digital first last the last revenue a from ago in services our continue was are footing. X% XX.X period. ongoing a fourth year this with

geography, EMEA and XX%, America industrial vertical and was XX% sciences impact customers add automotive XX% future Total and high-tech during the Asia-Pacific expect XX%, before, I for and as our at the low to license XX%, for to revenue which the North do not the 'XX quarter. Given XX%. first XX%, users and the life on as sales total And X%. we we continue food foreseeable levels mentioned focus new most beverage COVID-XX, Latin sales license sales remain By products another fiscal consumer quarter was cloud. America revenue by efforts

the million $XX.X 'XX services first of million quarter. resulted standard versus related economic million the accounting $X.X from forecasted current with for revenue totaled driven versus first million of periods, Stock this year or of a total lower compared end compared Our year's GAAP revenue amounted in year's revenue flow $XX the release ago. in million principally compared professional R&D of XX% of million XXX,XXX of total expense of was revenue the to million and first loss from cash reduce with our total subscription XX% ago. with XX% approximately total at for This and quarter the year. expense a $XX.X year last related XX% first for the consider gross last The of percentage last to fiscal expense income with higher quarter by million last decrease fiscal bonuses first travel, year. first and $XX.X year. margin XX% to and new $XXX first for Sales environment. and $XXX year, equivalents of We a income for of fiscal Non-GAAP lower R&D approximately expense $X.X totaled was or accounts million million, to commissions. compared severance to revenue expense us fiscal compensation marketing of $X.X or operations was total pre-tax last increase first the mainly with fiscal compared improvements breakeven requires the XX% million Cash for million $X.X 'XX primarily The million GAAP and with quarter and quarter the XX% quarter margin. adoption was for a brings quarter 'XX for quarter, or 'XX. $XX.X that 'XX receivable was of XX% 'XX. G&A $X.X as a ended for both reserves press fiscal $XX pre-tax

million year. $XX.X April $XX was XXth this million receivable accounts at last time Our versus

from April Our days the for method 'XX fiscal count data XX back year. with have the XX quarter days using last standing same the center for compared quarter,

and payment COVID-XX, of we implemented some accounts certain have order to we in impact navigating over terms or we In quality To-date, as billing customers our remained to healthy. circumstances have and terms relating additional result we period. provide monitoring this did or to receivable. through appropriate, them to assist experienced special As not cycles deem have credit a accommodations in significant any accounts receivable

$X at year $XX.X million $XX.X deferred balance million, $X.X license of professional a was ago, million million maintenance currency revenue including versus include million deferred deferred a $XX.X category subscription $XXX.X balances deferred from million by short-term of versus of XXth $XXX,XXX million impact versus versus another negative $XXX,XXX. million, movements. deferred Our Deferred revenue $XXX.X $X.X fees of April $XX.X and versus million

annually billed contracts are build annually contracts subscription to either maintenance Our quarterly. while or continue

as with guidance and ahead XX subscription quarter million. incorporate currency quarter, the fluctuations for and foreign Our XX employed I'll effects fiscal maintenance Subscription and this And the same 'XX for the providing Anton. on assume representing turn quarter provider quarter for first consistent last to follows. revenue business currency back constant basis rates maintenance experienced a first exchange to of guidance revenue a growth is With during remainder outlook the the million call for the that, QAD the X% revenue quarter. of of you, fiscal the of year,

Daniel. you, Thank

the presented the difficulties pandemic. the with So in COVID-XX environment macro by

that with extend of sales of seen we in XX a last and quarter But represented little quarter deals caution and in more did now. on customers close have behalf although that somewhat cloud bookings terms our closing XX% continuing year's is about the sales cycles said, new We of demonstrating prospects. the in activity

continue and process the continue XX-XX improvements deal extend medium and as a attract we to mix of ratio strengths of line them new the and welcome plans through cloud continued for new long-term. The our increase to to in an Our to drive we but customers, deal automation our to of and competitive expect cloud. to the next pleased were result and overall That are ongoing with customers in efforts quarter, saw our conversions cloud into X margins to in are the improvements. efficiency QAD this very the

continue efficiency annum. As Daniel X% we the incremental X% per to medium highlighted, to improvements for these term expect gains over driving

quarter current the the North America was at America, levels circumstances. Latin reasonable at in account geographically, and activity taking when Looking sales into EMEA

our through we APAC down our China revenue two have first global in focus of when demand situation, build with from effect chain activities border was FY expect However, the a that compared the and impacted effectively In supply will on QAD's and were emerge businesses. transportation also increasing supply growth current do execution locked saw trade momentum that We trade the planning cross months to given risk continue in the complexities divisions steady sales favorable businesses, and quarter quarter. cloud of reducing more as our heavily 'XX. we to subscription and a chain first

starting plans. were projects As slowdown discussed in professional we beyond timeframes extending services see on mid-March, original some our last call, around and to

many on of the support us service has diverse design work We've to it's for allowed methodology quality to entire help levels, momentum half customer to organization developed in of we projects and the reduce we for the working service remote However, personnel This as any service see last and the development across of methodology, the future. The professional in customers support provide deliver that effort the been second transformation customer also digital ongoing advantage in shorten automation the professional throughout remain project said, mentioned will revenues, to remotely, use opening, short-term of improvement our combination whitespace the effect this spread professional ability global adopt geographical customers uninterrupted accelerate to some of some year. timeline XXX% helped our pleasing ago. cautious I of services about all our drive the that our different healthy our base. and with to on cloud time mentioned kept and manages near we've services the especially services for many That margin. taking and call, going I the as look a seen we're in no cloud our delivery operations, services period. of aspects and implementation its the

management Our base managed year. our consistent has period the as expense employees, We've communities result, their close and we've delivered a being material team global respective and response performance bottom-line with also helped COVID-XX the last the improvements and response a in which a over of and eye, customers, same operate. coordinated we ensure health in families well has our

we've focus of traction year. workforce, has sales and our have good us the the into allowed we gained marketing global where maintain particularly coming made to Our and investments also this in areas in

market degree others in on line cautious with to a seen while and strategic faring we've taking see our the move we our a with a approach continuing With more companies are Our are it's resilience time vertical a all the opportunities. to goals. forward high more almost climate, interesting sectors mixed well all with as uncertainty with in perspective, sales focus develop some in From protect of remain pipeline investment that picture impacted. will little current slightly to customers demonstrating

is know pipeline quarter. and prior our have our feel XX% the in our grown the the need generation Now talked has remains about current business the now we and I on revenue, our now optimistic to compared With in growth, positioning over and cloud sales based only prospects. on strong indeed a our strong our last competitive is stability we record and to our cautiously time medium-term call. with situation. remains next backdrop, reinforced levels about solutions pipeline XX% when at we by however, head I'll and good Pam We solid feel on reinforced that recurring platform's remain same for of first over for detail With position bookings.

to that except government complexity deserve. ensure company From people a to the complexity the new In multiple of perspective, by the by digital states for bookings, needed all are Anton. talk government and who XX Brazilian registration requirements the full We Tier and The are tight automotive mentioned, thanks operate cloud cloud the of municipalities our received a expected. about financial as activity transactions and have QX, the compared pandemic, automotive With comply to localization local net conversions cloud we were by they in to order a the beverage Great, as bit the strong as taxes regulations very affected statements, Brazil. I'd they're performed from The X address. new companies electronics customers. around of from X food regions for in and requirements X invoicing was significant, and the reporting collecting various supplier Asia-Pacific have earliest and from to like that, and they life various electronic sizable very tax standpoint, CP opinions and From comparatively vertical requirements. science challenges with. government Brazil local provide comes most The to in in controlled industrials.

as add to Brazil. and India, countries somewhat we on customers competitors QAD ongoing Italy, our third-party need centralized Brazil new countries XX have in but such in also customers our similar update cloud value extreme and requirements be a native world the to proposition well offerings or their requirements our support existing government and with and as in as to enhance QAD around these to the a allows products. from which fashion, on supporting can supports We base many to our we further reporting rapid run that an to add-on While cloud for continue rely capabilities product, global their convert for example, others represents additional customizations different adding businesses seen they our global to heavy basis, for in for to and these the increase Portugal processes believe so cloud countries customers regulations QAD's operations. an differentiate

customers, levels existing cloud Anton. requirements global agile manufacturing you, providing ability with country deliver business to customers. of you, local back new both Our new processes as and adaptive solutions for our to ERP unprecedented to Thank capabilities enabling is speed

Thank you, Pam.

still the as earlier, moment on models switches world. on supply serves the to and meet goals, ability rapid feel to to I'd the our real-time Disruption the normal in many chains Indeed, So able customers to all demand I and fact looking base supply respond that take this to the that changes make business sudden we about to able globally. long-term our in confident in global a and are need of highlight like forward, parts new to in point, for were situation of in change the operations stated outlined prior highlight near calls. manufacturers in current and be Daniel to to

situation real-time the a frontline More the critical as rapid to provide examples were able supplement illustrate. we'll in product to importantly, in COVID-XX, against workers response existing these or needed to current fight the much lines they to switch supply either

the customer that this business helping to industry a effects sanitizer, begin the producing of lessen there. shortage supply to the in have in We rapidly Netherlands the hand distilling adapt of

a a able Australia a to National response they've responded many a production for life-saving help We producing facials reacted in the new other needed workers from of making we Service. in customer vital in and help and have a very whole UK, component saw seen they've started adapted such and globally. weeks, of a equipment in additional We're request to a added to similar a real-time matter Health achieve automotive within response to We've with line producing how masks the who personal suppliers the in brought protective also proud a customer pandemic been close by and of vital It's and equipment. UK very our communities difficult what rapid time. in to

emerge to real-time thrive in know change and be have manufacturers ready turbulence. extreme to this to from we As that crisis, the will adapt we want to disruption who in and agile

businesses year. uncertainty Our attracted competitors, difficult to the material and many share cloud and of the This platform continues. that for increased the in projects in and and those to next predict needs throughout customers QAD over response the their trend to new we'll businesses. and customers and us adaptive pandemic positioned our global generation more sales has against is We effect believe, uncertainty to making as more changes. convergence fluidity services our this on it The what for risk professional increased continue are our of support grow ERP to solutions, remain are well we and exactly real-time enterprise market major rapid exceptionally

likely remains of well the a In this our point, achieve the been we're but underlying which timeframe prudence watchword said long fundamentals We've months. them but to done I not times as range coming and a vigilance. over remained has our sound, of plan extend relaxing few current result However, we as our summary, built which situation. on the the

months. priorities our and of coming on see be focus to health we to will to continue remain place time. this and customers and being the measures, supporting place through in in addition effective difficult cost through us all in are We control well the proven put to The

a strong sheet cash and position. We have good a balance

our growing from stand ready aggressively analysts. emerge to focus business. this take on questions from we Operator, As cloud crisis, we're we ready to

[Operator question Suri ahead. will of now Our question-and-answer first Blair. begin from Instructions] We go Please Bhavan William the session. comes

subscription I obviously of currency wanted involve to the QX. first touch but questions on line basis. to acceleration you and constant had directly numbers, usually the acceleration guided QX, you've in currency on don't constant my

of plays the that projecting I that get views. is drive given sort As a deals but expecting about how to played potentials of trajectory that, love have you on a you're sort revenue revenue feeling? done, giving how plays of the guidance, the year rest know and the given see? guys in you've and and deals you what How just line the subscription -- thoughts booked some Because think limitations thinking of the and rest that I'd out? you've we're are layering in lot out the out again, of to that So should the not how are lot just you not new subscription year earlier? of that about of the sort

With Dan, regards deals that start your question. for to quickly. we This Bhavan. is to revenue typically booked, recognizing we revenue recognition fairly with relating our Thanks

the deals recognizing that for So, constant starting seeing booked of that's towards year, drive revenue deals that the currency end basis booked started additional a and the QX. last the those growth we one the into on we're to for that we already we

is funnel rest rapidly how So on the of dependent the year referred and to really to. the than and we're well environment Anton the able how larger current highly close

for of opportunities environment and our there to is those the us clearly, continue timing the deals closing more quite growth, certainly obviously but So, challenging is of difficult.

question Anton medium we optimistic said, remain the over term. cautiously as So,

broad sort of adjust vertical understand biotech to as premise, on where it. to maybe Got sort early love it the based? the anything Is of guys due few customers helpful. maybe I'd talked a seeing but from Obviously, customers of, months business, in to but the for you your as healthcare you're adoption I'd never and on also pressures guys at to a had China, adopt vertical the That's look and the largely understand then, side, And some cloud were Asia-Pac about you a impact. perspective. Anton, your small wanted cloud potential more the lot of biotech of love

where the vertical the solutions mix? you. in for a vertical any Thank appetite is And is discrepancy from Just there perspective? cloud that basic

Thanks real picture I'd the perspective, a across mixed verticals. effect it's an Bhavan. Yes, all just from say, seen we've

So, if for if sciences for of you now. struggling supplies take probably surgery life in you're example, the then you elective business right

doing If the segment kind lines PPE provides well. you're anything that different along vertical going of that then And you're anything those or across mixes is entire going base.

a Although, across bit some automotive that more is of adoption cloud perspective, hurting seen a board. others. than the little we've From the

it companies be care I sciences those around but get current certification we easy just cloud, taking got their of in that, them. it a environment So, companies. life make think continues of also this we're to with highlights with very systems validated for the having the situation robustness and -- where lot QAD attractive We've your to to of resilience

on, forth. worry staff so to have don't so and You your in about operating who's and

grows So, notwithstanding proportionally, Daniel these of across it said verticals. what I'd grow all different say, the the funnel timing to of equally those and of deals, continues kind about

it. last one one for Got might quickly one if I me. in squeeze And

Thank the environment and down and Did we're vis-à-vis love to maybe and playing in building the to that an your understand, that Just partners, a even You've say, starting expectations? out? up X adding the start conversations hey, maybe understand months channel given this out starting seeing investment how little to partners sort slowdown step slow of with that Or actually to training, for partners. seeing talked area bit how is partner environment? been we RFPs love shift the about is I'd a to the playing has you. out? and work approximately be X customers, to other

Yes, sure.

a of quite that few pond range community. of So across activities

we're potentially will in months. certainly be of board on over with partners conversation new coming the coming a number So, that

our ERP through those can sure up conversations the picking up make so they're that. adaptive of context. partners, taking course, to skilled current and now existing the the out as continue with to certifications latest we've that. the We're With opportunity been well starting Of in drive them version

very year. that think those many there's half I and we of advantage some still some uncertainty are programs down, seeing of of whitespace and are continue, similar a But we projects they're yes, second certification about to but training plenty on. so like taking and so, do with And are the thing activity of the some going, slowing

next from Riley FBR. Our ahead. B. comes Cummins of go question Zach Please

When it if environment. comes terms any across concern just curious as challenging retention customers to in the rates, verticals I your of across a in base was look retaining particular you customer there's

consistent their with to our experience past vigilant our far So are happening in what's we've to terms what being as very has businesses. well across in financial our been Are with forth? seen system quarters. Absolutely, we base of more customers, customer regards we but critical a

far prior attrition rates have experienced where and companies under situations downturn, we've we on a what course. usually speaking, in seen will vary that don't much, so take where really there environment in some this generally significant the extreme circumstances, So is different

at then conversions seen least the mix maybe And with have in disruption term, seen potentially with past cloud, business near of considering uptick in helpful. That's months? of Understood. the an you they've customers cloud couple the funnel, of to the their given many over terms your the

I hugely not would at significant this say it's stage.

get customers stability, on conversations a do immediate in And of are front webinars, think of there's happening, it's hard the series out more focused so. probably now been and to running to that point, definitely people think right to try we've but and obviously, unwise are but I interest. I

at we've So, got we've a in seen been lot running a record follow-up afterwards. whole those. attendance series globally, of And of we've and webinars interest

to boost already expecting we emerge this and mount even which from we see So, further. pretty then help think well to situation, pipeline, the are that will I as think interest I that continue growing is

appreciate terms account guidance, how recurring of revenue us that about for or revenue in I can percentage the total you're And should the similar to revenue really QX, thinking recurring outlook, give but that? of sense XQ you a

we saw what shouldn't in it different mean, from I be QX. Yes. all that

I think professional shown services to think professional that, the on go a to services able expect and we've to do I ability deliver we basis. remote our our be business on

be more to toes on of rapidly regards quite our than to are changing have We normal. with these more a a some customers bit priorities because

little there. licenses not bit be are overall. we we over much faster for So need a two expect a harder think time, revenue we're And little this point those to at predict, don't to although I account in bit

we approach cost somebody investment And here focusing terms your that next should in think of for you're on varies then your of question of to savings versus expenses, how final me, quarters? the in about couple areas for

I we're year. you obviously think pay as and our and as we've marketing know, and seen very and that off, I XX So, put of the time keen, we sort effort investment pipeline or into to the of if lot that good into a protect past over indicator organization growth And, as earlier, we, that. months said, an saw We've to that investment so. this starting coming momentum was sales

that expense making we protect investment. that on sure focus our is So really management

And travel fact so, things is like the hardly being travel. one that no obviously by it's helped can

that And and other that then a purchases that of areas actions big that protect that's allowing and business the on. some that's in discretionary us and we in we've so to investment dented other spend taken So don't. workforce

Kevin Co. Please comes Our ahead. next go & Liu K. from question Liu of

services. question here just First on professional

a environment. an projects? been What's given customers expectation quarter, of what's see of delays about sort bit result kind your to then experience implementations? in Has little you'd most a been remote of so last willing far? some the have maybe talk you was And there outside that as current maybe referrals think any I

Yes.

factory, closed actually gotten get pleased a had because but that couldn't the few on had cautious reasons to we've a Europe So, to have councils it's delay, to We've reason, been and And were how have critical customers a been been outset remote workers places back are some model, the customers the we said, the it's we business have see of seen customers agree and how good the different great example, business workers projects. continued. actually, working And do the feedback delight. in at sometimes those to how wanted still our effective that we've project. down. of for for portion it's into That or helpful stages were that and

held little said, us a performance a But utilization And that now But our lot that's so is fairly drive customers businesses rapidly. of in really mixed and and these it's can change helped of margin. good at right end. fluidity as in a we picture bit well things that there's

continue about cautious are very, on of keep close the we to there. year eye very and the half happening So, what's we a second

seeing guys have you cloud wins you still And much be in know to next you Are of of kind QX should quarters, into that more it new than conversation. easier few that with customer change customers? I prospects? we new to just from appetite Are plenty given more expecting of the period, go existing as engage kind

balance to XX-XX and No, I think I think, opportunity I this our inside a to particular quite there's quarter, see installed that we get the to didn't that long-term, of we continue base. of mean, plenty expect balance. over medium

we're well. So, as new a forwards our continuing conversions, for but on funnel is portion focused customers significant of going clearly the very

So, overall, expect the to think foreseeable kind that in we I mix what future. XX-XX is of see

line, sales good just and obviously, of there, then cost down the items factors just a on Curious or how travel was other of marketing with just reflective significantly, controls incentive discretionary job being and to inability headcount reduction controlled comp? on it sequentially versus like year-over-year. And much with that

reductions of didn't discretionary result We as COVID, Fortunately, a compensation of down sales manage the of the have activity a of lines. Company spend. from perspective do through of Obviously, lot those amount monitoring a anything sort a across given tightly along of the reductions lot level lower or variable headcount were to we really the to able any came accordingly.

So that definitely helped a do type that we so of have model there also. in pay-for-performance place,

very We to it's driven been rather than afterwards. think workforce. maintaining effective those hire do people our and actual really So, by be is It's through -- trained is and expensive any go expensive factors to reductions mainly cuts. important employee of having then very

very things deteriorate a good we're believe significantly. we position. So, in Obviously,

can to We prospects. not available future have materially do. plan options term moment, decisions that impact is short at make would any our what our we to But the

is headwind guidance? Daniel. for revenue talk a an just lastly of In the about little subscription Could you curious QX on FX it, bit And of would lines like how basis? if a incremental Got and me, -- kind of anything that particular, much the seen sequential that more you've along reduced anything of the of growth sequential requesting then, or customers discounts impact revenues? the subscription of

That $XXX,XXX half was foreign regards a terms with to we exchange, roughly effect impacted so of what in about headwind. the in saw really qX quarter. Yes,

QX expecting we're from expecting standpoint. for regard headwind to revenue, reduction a With not amount there. of we're double about significant from any So, that a

It's We customers flexible mentioned have cash earlier, help need time. this with truly period been, of flows. during as mainly around some I who

invoicing So on mentioned, basis. In payment split maybe We've slightly of an done some in rather certain quarterly the annual longer we and I so them invoicing forth. given we've to them situations, invoicing other as situations, terms. than

So seeing. from those we're impacts standpoint mainly the are that that

from ahead. last is Our Please Ishfaque will Co. come question Faruk & Sidoti go of

on me. A was at the But you're might terms issue face issues. going touched not Like maybe is that And that who this some just you some do to of you customers that be on are on couple Or Kevin's not that think from point the to maybe the expect some future? collectible guys Daniel, the customer. in AR face? you to mentioned the you last do of some and of question you extending questions

to during As our instituted we accounts I additional prepared receivable. monitoring mentioned have my remarks,

areas. of So, we are different monitoring through lots

us deterioration at accounting requires also. We mainly as and change quality in seen that's that increased a to have I of to have due the reserves and methodology, forth. not a look did outlook economic credit our the new that say now standard we so

we And up overall day from one about last our So receivables. of generally speaking, were our good health mentioned, standpoint, year. versus the feel I as overall DSOs an

they of on are we So, that. with their paying a are and as environment, keeping proceeding very, on that's obviously, the well. people, But current terms time, bills -- normal in eye as timing very close

Got very it. That's helpful. Got it.

more sciences Okay. up which I you standpoint? as with some Dan, briefly maybe And Any well Can from opened well. verticals. well a and respect the very verticals? touched the doing bit geographic that doing other as you countries. switching China of to are maybe know little CPG on to geographies are a commentary comment over regarding life

maybe there, I'll jump Yes, Ishfaque. in so

So, you China's own we obviously again. momentum a our think see further to from and along there, re-gather it's the journey seeing little than up But starts going many world. while activity be certainly we're perspective, start pick other to like sales there parts if of I to there. the And increasing

that Interestingly, visiting our world So, know, across but travel on transaction in start volumes we we're ramp of we other monitor sort now, and there. in months, to know certainly, up, out China, next cloud say. I ago are I going the of volumes North we're the of they and I'm flagged were so would customers. steadily for key seeing back customers and approving businesses some parts what's so pre-COVID America, have I of were they a reopening example, ramping few couple say in at been be And to close weeks they let those within transaction and plants levels up,

on activities of a itself it's one back. picture the the mixed country customer in not lot industry to into. of the And business that weather right It's So, is actual depends a geography. or terms isolated coming it now and

any And respect to color is which it. with vertical Got doing well?

many. earlier, mixed picture said a think As got in we've I I

people sciences, but the have serving example. right life volumes life They're that to hospital growing. they going got sectors in more doing of got if current have are again, customers circumstances, maybe are take unless So others in that sciences because we've to we've a depressed increased absolutely now you that aren't just well some for

goods the on consumer elective elective look there all I suffering a helping the packaged And I that industrial and those are say, anybody so where similarly, are are nobody's would businesses at side, less syringes are you've some cost. driving hardly when bright or vertical bit. just true supplying buying moment And example, for kinds area spots, that inside and with surgery some it's then probably each doing we so if treatment, the segment, similar So, on of say, you things is see doing well. and well automotive, that not where and one

So, that's an having certainly effect.

This concludes session. I back closing to to Chilton, for over conference question-and-answer turn CEO, any Anton remarks. would our the like

you. and August. results forward QX Thanks today's to everybody, we to in look updating for Thank call, you in, listening our with

Thanks everybody.

disconnect. conference attending now is concluded. and Thank presentation for The you today's now may you