Crexendo (CXDO) 9 May 232023 Q1 Earnings call transcript

Greetings. Welcome to the Crexendo First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the conference over to your host, Jeff Korn.

You may begin.

Mike. you, Thank and Call. everyone, the QX Crexendo Good welcome Conference XXXX afternoon, to

On locks. Doug Board. got our because today and me our hell joining the with call you Steve is are don't Buch, CSO. Vincent, changed Mihaylo, I know CFO; us the today Anand of COO; our Steve, Gaylor, I Jon in and Brinton, the here, CRO; Chairman our the Also And Ron President our how

gave me [indiscernible] key. a

I firing. show call Steve the I who for only should obviously, I'm that our I'm going and know grateful kidding, came I Now first start team on me his mean solo. very to here support

After will Doug will So on for do go that, questions. ask what and and to provide the going I'll some numbers, business a call Luke is and to up brief comments, I'll then more that, open give harbor detail Ron read after update I'm statement. provide ahead the safe the

would Luke, safe you So the please read harbor?

Jeff. Thanks,

business designed quarter revenues Before Reform growth and conference building integrating leading in sales new the offerings, continuing growth, as lean to in expect, well our our additional forward-looking successfully to other both a Securities through increasing The supporting first such believe, prepared to the of statements. greater companies for improving information infrastructure to the and were Private add-on remind was will statements. quality top estimate, expectation on provides concentrated our as drive and to organic and industry. its business combined the efforts The we about forward-looking remaining customers, call position in result sales strides of remarks legacy the cementing leading forward Litigation include financial execution line prioritizing supporting in and acquired everyone cutting this of the that forward-looking like results line existing Crexendo, believing initiatives similar recent and operational Specific performance the to the expenses on we expanded continued is the a necessary looking customers acquisitions, of new that strong safe harbor of UCaaS statements from a statements efficiency contain sales profitability bottom -- and XXXX provider words capable of a for the forward-looking leader begin, and building further and of identify new anticipate, drive Act to would maintain great to make organization, quantity momentum the business as footing statements.

detailed which more ended For the on such for may that except required a quarterly with to as Form discussion the XX, company's are XX-K the statements XXXX, no year company and only update and by of speak risk filed please SEC. refer of affect December date the and Form factors forward-looking statements XX-Qs as forward-looking undertakes operations statements, Crexendo's results, as law. to made, obligation These such the

call CEO, over Korn. Jeff the our turn Jeff? now will I back to

quarter, better the to we so to about Overall, straight to we speak pleased make. discuss a capital. changes more profitability need will we I line, more we what be very going Thank with this and to do for allocating I what are the shortly. be results we particularly where I shooter, bluntly need with tend will that recognize you, and Luke. intentional are our top our but increase we're

restrictions necessary and spending increases in cash spending our freeze I've implemented share revenue show income departments. of basic in the we mind, non-GAAP too imposed on that in XX% but well drive on substantial exception growth, bottom are not diluted for widespread year-over-year total do Our increase and that as per we a with as line. $X.XX net for hiring poised and or this items our directly are discretionary $XXX,XXX all top much With have common for replacement

grew operations we have the our flexibility lean acquisitions careful. continue and We, year, are grew In limited strategically and a this we driving sectors effective the business into quarters. our to to expand and will been fully primary in overstaffing. And correctly strategically organization. integrating and position, many and be Thankfully, Throughout and debt focus are not will optimizing with long-term legacy to unlike company. organic our on in while has by continue run strategy, growth obligations the and our able mounting future we we our

some This is through result still was MSP acquisition margins. working as has an that inherited business we varying services from profitability, thus the Regarding and natural of the lower-margin Allegiant. are of more

assimilated We also more meticulous business, well. the rolling MSP integration enjoyed members that will out initiative which a team have telecom a to an is believe can and business carefully expand manner. our the has smooth we that be get Allegiant into in

we While logistical still ironing been that ease exceptionally performance processes by come have and have board. are there on we residual some matters literally impressed of are the out, we

integrating to and our over efficiencies the operational We significant operations corporate next X see the acquisition direct into financial are both on quarters. and focused and expect

fully initiatives board working the Allegiant These and smaller intent and the to We cost the acquisitions the in also result ensure with business, the of that realignment basis. and in operations are are are the all realignment across divisions. will structure and a to cost synergies maximizing ultimately targeted efficiency really which to all we reporting recognize on -- in

of process of of which we our personnel, we a have work digital-based terms corporate in office to are productive after listing the Tempe, and a year. lease back in because In we of physical workforce, space which proven need hybrid the space, has our now selling for will be before the decreased line more in

to the of to savings need maintain of and the result operating and powered remains all provide system This customers in no the as classes that Crexendo Systems exceptional will better make intended All and operating on substantial longer We efficiencies X us increase are, cost to as a will a process, sure absolute substantial actions a us as continue to savings. be market. make systems company, part the these VIP. moving cost best are to they by NetSapiens allow that

savings crafting which and lead team customer in for messages generation time Organically, streams. in our are AI is additional on This starting systems customer The is to engineering of helpful the are other and into funds, to into and will we working we intelligence using sell. work a also improved will result team artificial and process AI already our additional up expanding functions. marketing and sales more free cost integrating supplement [indiscernible], experience. increase AI service

to am To line in I improve focused material wrap my remain our encouraged business line. portion, top on the the up bottom our by to that I need very results, to order happen changes but

We ourselves for have set up success.

are substantial We expect long-term the place. team I right with right initiatives profitability. the in

is built obligation that. goal the of drive the revenue, our the year to is to and excited the day proper every value. drive for that foundation in team Our remainder cash I remind future I am primary extremely our shareholder do we And about to profitability. improvements that have believe and

Ron support that, for I'll Thank and with interest to the And Crexendo. over call turn you Ron? the in financials. more your details on for

first $XX.X year. All quarter. million $X.X of $X.X the acquisition of first prior for million Jeff. to increase in of service increase million for revenue compared of XXXX to for quarter to of $X.X first acquisition XX% Allegiant the Financial Allegiant revenue million comparison. million the in quarter year. organic $X.X Service total million $X.X increase increased quarter the quarter right. the of revenue. for XX% the XX% the for compared contributed period-over-period revenue prior the was Total The XXXX first highlights revenue of contributed for the $X.X the Thank to you, increased and million

Organic revenue increase -- revenue or the of X% $XXX,XXX service for period.

$X.X revenue, revenue the million Solutions prior product XX% product in growth $XXX,XXX the first the for compared first for $X.X quarter organic of And for XX%. or quarter to increased first contributed increase prior XXX% of Software of the year. for Allegiant million the $XXX,XXX to while first to $X.X year. million quarter revenue contributed quarter increased the the compared

quarter the first XX% for margin First margins, service gross telecom XX% was QX of to the of gross year. XX%, Allegiant, excluding prior quarter margin compared

product gross expenses and XX% $X.X $X.X quarter XX%. year. for the million increased Software quarter XXXX million for prior XX% The contributed of margin, gross expenses. margin, Operating the to overall first compared additional the of operating to gross margin of first XX%, Solutions million acquisition those Allegiant $XX.X

quarter and The for first basic million of net the or of $X.XX loss of prior $XXX,XXX for That's diluted share the per or diluted basic first loss diluted year. per net $X.XX common $XXX,XXX loss basic prior basic quarter for compared to and compared was the per or common a $X.XX Non-GAAP loss quarter to of a $X.XX income diluted a quarter $X.X share. per and company million reported the share share income first net year. common as net of for the or and the non-GAAP common $X.X

to to adjusted quarter XXX compared to the EBITDA of our first the prior compared year. for for $XXX,XXX $XXX,XXX of the of -- $XXX,XXX quarter loss but prior a increased the loss a first $XXX,XXX of in first was the quarter first EBITDA year, the quarter for

December Our $X.X cash, compared $X.X at XXXX. cash to equivalents was XX, XX million at March million

used million compared same used for the period for to million used of year. activities Cash for compared year. Cash in the the period cash of $XXX,XXX X-month year. for the investing the same activities the investing of for financing period period of $X,XXX same operating prior $X.X the used X-month for to prior by the used for of $X.X period provided X-month for $XX,XXX compared of Cash the period activities to for $X,XXX activities prior

That COO, Gaylor, that, President it highlights. and operations. turn our and over comments concludes additional to With Doug I'll for on sales the

Ron. Thanks,

the highlighted business. organic core with our by started have impressive we shown As growth momentum, the by year in results, significant

Allegiant was our segment, with in XX% increase contributions revenue acquisition, the Software organic growth growth highlighted their XXXX revenue Our XX% combined our XX% saw revenue Solutions year-over-year from numbers. greater-than-expected from a organic QX which by

revenue foundation include does Allegiant's with build for to XX% year. quarter, remainder $XX.X a backlog, The for backlog in our combined the in the the our on of solid million us which gave increase not

months. a telecom on XX backlog solutions customers to the significantly report existing We As is that software numbers. XX some our services and values will to QX our reminder, the remaining anticipate over Allegiant with be our included of and include, our next will that scale in for contract the a sliding will backlog add be recognized

were further solid, mentioned, numbers continue Jeff our as to costs from acquisitions to well remain managing revenue business. focused on grow As the but our we synergies as optimizing

benefit over speak. we we Against these actually improve look times as industry recessionary that have believe quarters the cut to and are to we cost as ways our of what I see industry. strong costs businesses initiatives productivity, continue substantial our efficiency the demand and exactly macroeconomic on next X UCaaS recognize and that the in and solutions backdrop growth savings uncertainty, We can and identified for is that broader executing offer.

we migration has due first quarter on small, end widespread part in level million This target the X businesses strong end of our double of in we million QX. facilitated bookings users the platform growth had The agents. the us X.X eclipse by to us Crexendo to XXXX midsize licensees sales and June to see the from for and the in continue has enterprise cloud helped to been users and put on

new cross-selling the Our opportunities. Crexendo, board on internal significant expectations, which we with grow, drives turn they also for need our licensees We additional the number services our and additional on throughout year. that of which X software from come licensees organic in as of the and quarter, a added remainder anticipate is track licensees solutions licensees --

posted results end installations the quarterly number segment Our a customer driven impressive also by cloud Services in users. adoption resulting Telecom new increased record quarter, for of by

meaningfully traditional Crexendo to program grow agent Our continues as well.

agent partnerships added our strong for OTG with quarter, newest the have and Consulting master and Distributors the large Jenne also master we Talaris X during as quarter. Our performances agent

scale. of to the a our working number partners, look as build continues of we forward companies to with program continue growing We roster and to

network margins our was by which with mentioned, the and services service margins for UCaaS contributions. along Services Ron and offers additional declined quarter, respectively, XX%, Allegiant revenue their to margins from Telecom product and As XX% offering. managed Allegiant lower driven

pulling customer through service Some much of offerings. help a complete lower of a in these ultimately margin services higher are spend bundle but in

margins to Services Telecom increased the we the to from the we numbers without on continue improve XX% Our XX%. expect to company And Services return to integrate and range as certain margins Telecom Allegiant's offerings. quickly profitability XX%

expect technology a we by continue and margins typical therefore, to to usage with quarter, increased Because fueled Software is see Our logos stack growth these improve XX% our margins rate. costs the Solutions for increased licensees. and not have XX% proprietary, the organic to add new do nicely associated growth we as

recognized the to and report, as premier Support leader review is leader the Business in Voice-over-IP Usability Our in award-winning which awarding and be the technology VoIP, GX, recognized in Do including a by continues Best awards. to XXXX multiple Best services space, business Easiest QX site the us being software With, the with along as awards, spring

a During Insight in our multiple instances Also the terms performance newly as QX, had or Service of and platform reviews. CCaaS reception from during our released we numbers on Application we the our front, technology offering and Software the Management released for installed have of quarter. Center licensees Solutions order Contact great

centers, text, provides customer for center applications. chatbots customer stands e-mail, engagement call call including larger for for which CX Our experience, offering, automations and omnichannel

with and set us strategy game helped set of revenue being helped strong us set anticipate the growth, Our us plan we what combined for has apart a up our and for the company. banner has year -- execution

in map to end-user With keep strategic improving growing that shareholders. partners offerings, platform will We deliver we believe and We have the and we'll well, are quarters returns of fastest-growing come. against the solution to the extremely us and attract are direct and our our positioned managing along our and executing our the we'll with the for committed offering we licensee fundamentals to road UCaaS continue the the continue in new our in of combination industry, strong to business. best customers and allowing country, margins network

I will back for Jeff further now any to turn it over comments.

Thank your point, and the you, At Ron, comments additional I'm ready this to you, up thank Doug, for and open the for just call information. questions.

our Lake comes [Operator Street. us And to Eric question Martinuzzi from Instructions] first from

XX% new a market. numbers something to with licensees the that. it the new are sort strong perpetual Or form wanted good tough so I probably But see are aboard. it? is do of a dive subscription? there coming licensees people the Software that that that growth, On to in How into sounds the that had taking like the to wondering QX, just what it's for Is outperformance Solutions, that license? X factor

I'll okay. Jon Jon? let that. answer That's

Yes.

we're very So mix get attractive. Both perpetual licensees offers are of to license, continuing a and subscription.

as them. have solution the our based of that We attachment choose new us that product delivering to well, additional centers get we also gives mix which continue on a actually revenue licensees data data to the control host us for them to in centers and

at Solutions truth -- was trend So different And there one of where in their starts one the X. come question if us. look because just continues isn't they of we -- one having no you part from is excited over it with generally UCaaS -- our your a be are from from, about we're Crexendo time, Software do journey the to division

from to the very higher and platforms, us. coming of are to of licensees good more have new them both competitive of all the mix lower west end end of join the all market, continue almost So or a them at

to And to Eric, upgrades lot add we coming as just from of well. to Eric, -- our existing see to also add licensees that that, a

add increases more So need organic see our we've licenses you our about as in licensees through their they segment. business, got now in platform, if to the using Software think our to which, growth fact continue they XXX-plus platform with Solutions turn, the revenue

business? you're would be historically, QX. expect to Software trend break that but the Okay. as Is from that business, up there And anything think I would just I formal for Solutions that that giving know not to we guidance, about QX

ups and to see when do migrations downs upgrades. comes and it We some Yes.

in about So some licensees, when we had XXX think nice existing we our upgrades QX.

So a that's not consistent cadence.

continues So the we see choppiness segment. Software little to continue there's just be percentage in QX, as upgrades extremely or in that discussed see happening that, same some how number earlier, will increase. that existing we of upgrades Solutions depending may a determine may guarantees the increases and you we're But we'll we see to to on be licensees. when with extremely, see fact strong may have But no it if perpetual, due our subscriptions that positive we'll

Okay. was business, the And then Allegiant that strong.

it, think was XX%... you what said, XX%, I

over did of increase what XXXX. they XX% QX in

Yes.

XX% So your that Was with growth. expectations? in line

had opportunities some that was large nice during they It their were that fruition funnel in through to the came quarter.

exist Allegiant. we're for excited opportunities opportunities on of of the that extremely amount the So about the horizon pipeline and

of out really first gates with a quarter strong us a sign. right So is the always positive

-- eye spending. freeze, did And to as talking we discretionary conclusion? then And headcount on about at Is what Okay. here, that any hiring costs are on that there know other involved well? keeping an point come restrictions we're I reductions

came particularly a my looking [Josh], deep may receivables that are there to to headwinds recession. a our thus We're have there manage concern that seen doing. be customers concern huge in event monitoring is and far, economic I that carefully conclusion but not We've at we downturn. the how a and smaller

everything We we have almost need.

I So I've on the And we in the in really we of sufficient staff, will and need have a budget right especially list everybody hiring. reorganization, substantial the we have think and complete freeze for taken don't there's position, put wish out expenses. when

essential replace positions. will We

until some clarity freeze, watching not we're front. we economic a our dollars very growth but the and it's complete our has hiring on improved, carefully So just organic very, have

out quarter the question be the the me. million. year can thoughts on then get And you on us leaseback? cash the we'll Last to where cash from headquarters $X.X sale The you you any assumption for -- at finish was give out the Okay. expect finished What's cash-wise? to able

Yes.

of of where anticipate add got that this to we're the that on should upwards have hoping to Ron, week. sheet. you balance think $X million about contract do consummated. that, building intent we comment the... a going sale, letter want cash We've to the signed So to We

is We're letter intent. assurance hoping it there's goes to of that. Obviously, more be Let no me of clear a it contract.

Ron, Now to if want answer. you

Yes.

far don't on we're think So the I cash, as that guidance burning cash. as

X as flow at receivable, the from cash of of $X.X it our slight the payables had negative, $XXX,XXX] payrolls you of operating If the we our a is million that in look as increase down but just to for March. activities quarter we little to majority [$XXX,XXX in timing during and change accounts attributed paid had in about which payrolls, quarter, a looks well

fluctuations but about not cash, in burn. just concerned So cash we're continued

So we're expecting from XXXX. cash positive in ops

full the year. For

Yes.

on Congrats Okay. the quarter.

Next, Riley we from have Securities. Josh B. Nichols

Yes. [Kat for] This Nichols. is Josh in coming

So my seeing first what And of is, opportunities in integration? acquisition in question for what are seeing terms gross you the you margin you guys are expansion? of terms for

and the take part the I'll discuss second acquisition, it. of to or I'll Doug let Ron

As we call, I much of acquisition have discussed NetSapiens the really during completed. the

people are all really because who Everybody rolling Allegiant, We around of some working. and going because work people moving of sleeves the were the company. And is their can there divisions of it's well. across up quite

prepared that, the a what of in more we're I'm ready by and think As it but plan. very, too working my what make be. much encouraged I to discuss very the us on will far said company not realignment we're I results remarks, costs reduce and our I'm working with should help and questions,

can there's existing up doing and that. strong agreements, But haven't Kat, come we And contracts yet. synergies Yes. we're renegotiate but some recognized as as there, we

remarks And into far some I integrate margins margins but gross as we down. first own through So Software nicely getting to next track, increased look prepared margins you leasing back significant we technology as those Solutions That have quarter segment, over the right and increase at anticipate I mean, expected margins the the go, the organization, few gross we on those continue because stack. the quarters. my obviously, that we will in that came as if as cost was anticipate savings discussed

margins without consistently at acquisition, heading the inclusion to in the synergies on that the again, confident XX% that's Telecom of direction. And of Telecom the prior range come the with up we're the you increase XX% XX% rapidly. acquisition. to of been look will the then Services acquisition, We've And on at margin very gross the margin those right XX% Services, that to if

it what Let me Solutions to lower customer. Allegiant a pure much a MSP a amount stickier are Software or because every to margins margins never fair taking margins much for difficult involve is margin will we services. customer big leave. just the margin to add business of telecom an because simply resold be not concern It But as a higher and act business are me time they the little gain makes that the is that more is it

the concerned essentially that it, out I'm So so they go of down is will difference. and lower that be fact which the broke us. the the because margins always sell will separately that and of margin a can margins something Allegiant sold But Doug why to if slightly based making not services. we're be that there And customer see too you slightly married is other, a the upon a Ron lot affects

from me. talk terms seeing in then And about Great. you're other what particular? Australia in one little maybe foreign a more bit adoption markets, Can you in Okay. of just

Yes.

to quick give more. me going Anand a give Buch, little to just over I'm then Let turn it highlight, and to bit you a

outside the we've in cloud communications States. look talked our international markets, in and presentations at we investor in the the adoption and about past states when the of So the of

at. so you And the United the to adoption that XX% you reports numbers on look are States, look if the about depending at XX%,

customers of the over that's of still U.S. in the there's the majority haven't actually migrated highest some world cloud. that the the So in And to probably today.

in opportunity X our QX. in European you international with market, at extremely and look pleased out much we that And saw the to those Australian cloud the the results percentage we're much, there's even lower market which if adoption communications, means efforts markets. So more of

that, you little And more so give bit Anand have detail. add to I'll to a

Yes.

that think continue providers the and data across to to [XX-odd] I I mean, see as we kind I -- think of probably we're what service internationally up that that. a board, I Just Doug think around is echo was whole, saying

see with team. As and growth small that also numbers, through significant quite from you'll very the you came area the actually a that dig highly efficient

out of And of legacy continue this off that space. the in so platforms There to Also, kind migration mentioned there. in are inputs that today before competing as the kind of and the our the both partners think of Cisco exist I some a Microsoft. the see we've likes of moving and there and that are we are ecosystem partners of today number of with are then and looking off

we we're are surgical but see it So given out doing there a opportunities very have to bigger lot of very size and to our being that continue [indiscernible]. of improvement about the And the of kind the players in that area. tactical team, relative we

Sakai Research. from Our next Chris is question Singular

Just affect can are I -- your how not guys spending, growth to freeze about and your through guess and were your if restricting going you hiring new ability a this growth? will you talk handle

it. If Chris, I our doing thought we wouldn't it be growth, affected

technology we to not I We mean have this is and perpetual. sufficient have expand. staff sufficient

at at you As look back. in most the they're our people of people look most the cutting to of sector,

I during the are we prepared need because size we remarks, to during have right growth. be COVID. for on didn't we substantial and hire a that go many do We're my to and at didn't for we As mentioned that too people where tear

confident do we'll highly am next and the year, we reevaluate great. I'm confident year, staff quite confident was this this I have, but in I will position the and in We technology

year of us. have last salespeople you increases additional of already some that end some if at at we've the hired the for positions, look contributed revenue-driving And significant

So now, Jeff currently when at, replacing somebody the we're well growth that But an is we we as see. option. said, staffed extremely, look right always to extremely continue

with solutions a a with on from Doug revenue we're remarks on to in is opportunities cloud will opportunities. are touched third-party Jon. sources coming the won too, a some larger channel And existing just provider Chris, talked that in with from targeting GX we perspective. staff we're to Anand software are renew the same Cisco and the others. GX.com, Microsoft the more this getting largest our his that side. awards you that the growth We're getting software couple side, us I the which of coming with for is going larger service little the give organically color, the prepared of through and opportunities pain And provider. areas communications on us like about

hiring sales and sustain we not So a reach level effectiveness can't doesn't growth. our mean higher more revenue people of

And not direct and have dealer channel, we of the forget, still they cost, driving Chris, which don't is are sales. a any our

costs rest have the exist. up, looking contractual at as come economy uncertainties negotiating of a reducing runway position this and substantially. discussed, we through will down year the organizations we power, as or much to as We where some combined we all just are go for are. combine taking all the of certain positions, we and we year next reevaluate upon a we the the in will when year, have And we we're in better force where But obviously, precautionary through longer no the contracts that and we we have Doug obligations substantial the we're reevaluated together, And depending costs growth. expect have

did for -- this quarter? backlog mention you the was what can you then And Okay. mention

our I -- backlog -- increased so to $XX.X to think million. increased backlog

verify number that just me for I'm you. Let sorry.

million, was Backlog Okay. XX% increased of $XX.XX to QX last which up from year.

saw our that the have again, backlog. did nice our for backlog. that include We'll report. we Allegiant a calculated And increase not number So in QX

talk All you Great. And migration you from customer more can seen Avaya? Okay. about -- right. any have

when -- of Avaya accounts their accounts. and acquisition, the about we do. customer actually, some Allegiant see in We their that think base are We

resellers interest at seen And have alternative. lot from lot so Avaya We've we a looking a Crexendo of got as there. changes of out an

thing our of there's some with for us. obviously, a challenges when And so competitors, that's good

customers gladly So us we take Avaya and welcome to them. call care all of of up those we'll

Northland We with Latimore from [Operator now hear Instructions] Mike Securities.

for quarter. then a questions two This is great you we for today. guys Logan [indiscernible] Mike. And on got

First one, some And your guys drivers growth of key do around information count? provide you current subscriber subscribers? are for some what

want Ron, you to that? do take

Yes.

X now, QX, So right we users. announced end in we eclipsed count million subscriber

today. through direct And platform our over that our That's So the our of majority [workers platform. the a of] that licensees end using and direct X offering. through is our the offerings licensees direct and number combination obviously, users offerings of of end through our users on our our to coming all is of users million XX,XXX

about So increase to add Crexendo manage to all using numbers, their licensees as our those our run their more are when are think business numbers and obviously And platforms. continue business. that their customers we more platform people those to and those

X of those million remarks So we platform those numbers we acquired doubling well when in numbers XXXX. of anticipate in end July my user we I of to plus, that we the mentioned what be in anticipate, had as

And expecting cash then flow you to year? be positive coming this Perfect. are guys free

and [Ron] already we answered yes. that said,

BroadSoft, Yes. All biggest of the business? Okay. is subscribers software your right. owner In to telecom

Yes.

you our segments, we've if two think So segment. competitors different in got each competitors, about

on services So and don't telecom initial see Microsoft through them and the formats, resellers. side, we we their BroadSoft see

Telecom And side, so competitors being on we the XxX typically Services and and see RingCentral others. Vonage

Microsoft's provider the platform the we largest On and side the side, And we're being platform in the respectively, platform see the Solutions U.S. #X BroadSoft and providers. on Metaswitch third Software that's where equation of #X, the

-- how seats, charging Cisco, it's because again, it's different very us price a functionality more But just a much and think our you always not are and Microsoft Cisco there. out if model expensive. we you for as much has competition more completely that a we ourselves big look and competitive that And model, about sessions, makes have feature on see we at plan. when charging than difference license, So been has product particularly model Microsoft and if per our present lesser that not a with

call now end will Jeff closing turn remarks. the the question-and-answer to session, reached over Korn I for have and our We of

in call this of our to want I to Well, listening you and for to our look you very calling forward thank quarter and all second quarter, And we results. much. thank

This may time. disconnect for your concludes today's Thank call, your lines conference and participation. you at this you