SPS Commerce (SPSC) 30 Oct 202020 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen. And thank you for standing by. Welcome to the SPS Commerce Third Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. Please be advised that today’s conference is being recorded. there a presentation answer speaker the will question-and be session. After to I for conference would Instructions] hand today, now speaker [Operator first like the your over Ms. to Blaszczyk. Irmina Thank you, ahead. please go

afternoon, XXXX Conference joining Good Thank you Call. and Commerce Quarter SPS for you. Third us everyone on thank

of obligation whether results furnished or and otherwise. of X-K call, the we Form more documents our the website, are via earlier website and the as release our our to these and expected Please forward-looking uncertainties spscommerce.com, to and could that a press actual a opinions of make results refer our result regarding are materially. increase no Please sec.gov. as to and involve and differ with the any date statements revise future retailers at detailed forward-looking COVID-XX particular our customers. to of of well specifically new that SEC's to today respect undertake events certain only from strategy These actual risks impact cause XX-K, our projections go-to-market will in our that Form for risk filings, of information, results. statements that projections could materially reflect today, the traction These as results, We performance update cause SEC or this description We with a forward-looking number publicly and SEC projections. other statements including differ factors and and to financial as affect note to our we financial may efforts our results available designed pandemic at on our uncertainty note penetration statements

Investor a easy historical spscommerce.com. we Relations datasheet addition, our for In of our section website on are reference providing

I discuss non-GAAP these is to including disclosures release each financial on measures will with our call per In earnings additional GAAP of share. our find EBITDA and these comparable our and posted will and turn regarding SEC, with reconciliations of that, our adjusted we measures, over which press measures adjusted you non-GAAP website, will today, with the filings call EBITDA During And Archie. measures. the

Thanks, Irmina consumer retail among an This XXXX, for the is adoption and acceleration fast-track quarter continues in strong as ecommerce. automation. activity a to pace We trend of third demand to shift resulting everyone. behavior trading welcome, delivered in in order fulfillment in partners EDI

For this by the outbreaks million. XX% Recurring third EBITDA on year revenue XX% dynamics. earlier a grew revenue $XX.X quarter, and long-lasting the risks million. to pandemic and of $XX.X retail caused impact disruptions chain XX% adjusted grew driving future to grew Supply are

the distributors, suppliers Changing relationships for make of through send relationships our retailers, retailers for only SPS’s retailers leading to various also systems network. order over fulfillment logistics shipping. trading Networks, EDI shopping with than and drop orders for fulfilling partner suppliers. season. announced with preferences solution. connections. our this fulfil ship XXX more with optimizing our hosting to methods has addition, partners, SPS automating index, with easier market exposure these a the to have leadership to complex supporting In for shopping X/Xrds preferred drop But online, product with SPS our integration partners indications, provider as a has retailers Sage customers. retail total, via turnkey holiday across markets. expertise market supplier more According and SPS implement most networks are in to solutions accelerated to Company drop store, pandemic Acumatica. by Quickbooks asking system or significant will five pickup the trend Desktop such position the XX,XXX a EDI cloud capabilities. IBM’s consumers EDI pickup the has curbside fulfilment of corner, Quickbooks SAP, Oracle is on is to SPS across ecommerce makes that annual as and and or all of ship through season trading with embrace ecommerce their improve NetSuite, nearly the customers deliver expanding orders types their drop verticals. the companies. leading all Right partnerships recently in Currently, consumers In We years. to expertise including includes as BXB in Enterprise Combined automation network XXXXs EDI we portion order and popular a ship of Quickbook committed across the our

America Commerce Our top that will North EDI five EDI stores create retail planning handle value other Coborn's SPS retail increased recently to will operations consolidated pet and in more of across efficient process. invoice a retail parent inventory and company one that visibility, pet grocery, more with use The all runs system Midwest. XXX supermarket. transactions of to provide growing a the order convenience, than reconciliation brands, in partnered for two company EDI liquor the

with modify retailers years found of They SPSs national as doubled growth SPS operational systems. with their in The Coborn’s implement or at engaged volumes in Commerce can in As automation the terms efficiency without the With also also Liberty producer profited accuracy, swap show. vendors network scale strategy to expansion Louis a company’s able and and be products payment solution their across expedite increased order order grocers. demand. than a to needing and Increasing and chocolate with fulfilment Sweets order business electronic fulfilment changes. can to to keep to increase result to up Quickbooks, growing update out implement of to complexities, the was current more logistics number now their speed two

several order enhance of and EDI effectively. quarters, EDI. business and solutions summary, streamline In XXs our full for for solution and SPS XXXXs SPS fulfilment. carrier an across supports we with partners to to XPLs, rely supply data their seen software trading shipping and in shipments demand themselves. The continue offers like chain past of and to Commerce have SPS improve system the service their them automation, the processes book acceleration up Over any customers allowing integrates speed retailers companies cost fulfilment quickly ShipStation who on analysis. retail distributors service Commerce connect scale to We to

As customers efficiency for accelerate, discuss to are financial shopping preferences environment. our and in results. turn omnichannel help increase to rapidly a changing automation over Kim consumer to we well-positioned now it I’ll our

year-over-year. and driven strong a delivered momentum quarter X% customers XXth increase $XX.X We XXXX. revenue Archie. revenue XX% of our in last Thanks, recurring year-over-year grew consecutive XX% total XX,XXX. revenue fulfilment of number which represented was this increased approximately of growth. a by third QX Revenue strong quarter to over year XX% of Recurring million, The year-over-year quarter grew

For was up X% QX, year-over-year approximately while it’s at share XXXX.

QX compared increase quarter For the EBITDA was quarter, ended the million, of of a We year. total last million. $XX.X adjusted $XXX cash in with XX% to approximately investments

guidance. turning Now, to

fourth XXXX, in range be revenue the to quarter the of of million expect For $XX.X to we million. the $XX

We to $XX.X be of to million. expect adjusted EBITDA in $XX the range million

diluted share fully weighted to approximately approximately We $X.XX average shares. $X.XX expect fully shares be dilutive with to per earnings of XX.X outstanding million

of $X.XX non-GAAP $X.X diluted approximately approximately million expense of $X.XX to Depreciation of with million. expect compensation amortization to stock-based $X.X approximately share expense expense be and approximately earnings We million. $X.X per

have magnitude the infections the duration the on and activity. around that and second wave impact the continue pandemic economic a We to of may uncertainty monitor if

pressure which bankruptcies the We’re on retailers, also account possibility of all closures negatively business. impact continued prolonged of taking store and would into our

the expect continued we in however fulfilments see year, softness of the For remains remainder we analytics, to strong. expect

approximately of representing million a XX% the we XXXX. the to $XXX.X over full-year, in million range For be $XXX.X expect revenue to growth

million $XX.X We in million expect growth XX% the XXXX. XX% adjusted to EBITDA of to over representing be $XX to range

We million average outstanding shares. per share with expect approximately fully XX.X be diluted to approximately $XX a earnings a dilutive fully at to weighted shares $X

$XX non-GAAP of per $X.XX a million. $X.X million, expense Depreciation with share approximately expense approximately million. expect $X.XX of earnings We diluted and of expense amortization a $XX.X to approximately stock-based be compensation to approximately

For the net effective earnings. on basis, year a quarterly rate a calculated GAAP tax the should remainder pre-tax investors XX% of model on

provide to detailed in $XX XXXX. EBITDA we on deliver For guidance adjusted earnings million purposes to however annual call, our $XX XXXX, QX expect million for we’ll modelling conference in

of adjusted pace achieve model, ability remain Given summary, have leverage of In EDI XX%. retail and business our our we adoption. history staff’s long-term target in of to in the the accelerated margin operating our trends resilience our EBITDA recent of strong confident

expect driving for call ecommerce, We embrace I’d that, this for demand and trend adapt the to retailers fulfilment as and suppliers our With to open solution. continue questions. like

Blair. Thank from of you. William first [Operator question our Instructions] Pfau We now Matt from the comes have line

open. now is line Your

Taking my question.

you it that neutral somewhat and second from like bankruptcies seems perspective. you that So, expect then, was could to your providing you expecting that it more higher XXXX. your a the like April, growth entered from or were you negative ultimately of to you it earnings in pandemic of COVID seems tier that the reported when going rate. kind And in were when a maybe quarter like guys call your to now for we be But results, could impact thinking churn it growth be growth perhaps tailwind had the commentary seems

us SPS the So, had you of thinking walk has COVID maybe Commerce sort on could how just through impact past months. over on seven from the you are

Sure, Matt.

So, different takes. there puts is and

we’ve side, an acceleration fulfillment the seen On there.

related A take the we’re in QX XX% would an about dynamics was the to need of that to manner of sort maybe faster their what otherwise in a are that suppliers. retailers seeing fulfilment is our growth approximately growth in from increase So, that we’re which year-over-year QX adoption digital with QX. have there rate was and than lot seeing

adoption. currently fulfilment seeing growth a So, it the on side Analytics a and rate as we’re seeing we’re positive there. relates slower actually

rates continuing we’re softness that year-over-year area see seen growth forward. that and so an quarter softness a we going have about we the anticipate analytics, X% For on is to on

relates increase is That we’d early we going that to potentially see yet that is little As just we to there. that churn, that’s know happen after holidays too seen XXXX. something bankruptcies that to a worried, and do potentially an into have there know. too to QX, something what is not think Again, really the in it early but

was the period, about there where to X% bankruptcies. to were Going back time from We X% XXXX, impacted economy. and difficult churn XXXX

coming what as So we’ve seen through, demonstrated fulfilment. yes, very positive relates it it’s to

not as churn that Softness if relates and and impact analytics we an see have had it we in bankruptcies. to

Kim. I’ll pass Very helpful. That’s from it thanks, And on. me,

Thank you.

of line the comes Our Ikeda from Koji next from question Oppenheimer.

is now line open. Your

a ads, Archie, congratulations. enabled anything And XX to on there and for like it six net is note programs Kim months? it quarter, particular pipeline a the out then, you there? I on Hey and I looking looks enabled my quarter is campaigns questions. net was the ask taking wanted thanks to community about nice for to guess next how Is net looking customer further, over XXX. there for question the really community Great

say scene I retail general programs really on both implementing job. a in nice Yes, in there new done would And also the selling tough a retail has but environment.

really about why that’s feel so team. of the has that we And very the so, they’re and foresee we strong. continue to reasons staid to strong They’ve focused, one a nice good done be job of that executing. really And it’s performance been going fulfillment

with Thanks, back to the of I think say this really chains for follow-up taking just And And the SPS seems be here negative Matt. it’s going Archie back that for tomorrow, imply a is a step I third opening bigger about either like the the suppliers Kind follow-up mean for fully, one business. are Kim. their went commerce, got point is stores retailers thinking thinking supply the that Commerce earlier Archie. retail from the shift to that about in really this back or with And future? way if would something there to you the question digital the would this normal It up a and here or quarter world an would results on benefiting to here.

forefront. hands-free move obviously But ship is just supply whole Well, a and focus some to chains general, that’s Koji tailwinds. I been drop automated on created efficient, the say in your would the making

work rid a big bills Just having to retailers touching home. very slips. what? to of get well. That and packing you’re doesn’t of now Well, early working deal from things you’re that. was the purchase orders, People are mailing small If at days guess like that mailing

towards there’s and in a think overall for an positive which clients chain XXXX fulfilment. we is supply I see the in retail trend So, just XXXX which tougher automating did

for great Thanks, Thanks on guys, the congrats my really taking Archie. question quarter.

Thank you, Koji.

you. Thank

the from from comes Our Needham. next question Scott Berg line of

is line Your now open.

talk ship and congrats both and today. I rolled the you involvement but and two on you even good quarters quarter. over the what’s to Kim what’s is side. pandemic is within system, as guess the concept taking impact partner business Archie the their out? tailwinds partner Hi my Archie impact? with with your the clearly eco just two the talked questions been digital about Kim, like in like And on your have about But drop hope here. about last our Obviously, there you new has

Well, ERP I have think surprise. to there. actually That implementations a mean along Scott, going about that’s that’s moving been positive we happen April seems been time in well. real the concerned were was to very period what fairly I

Now, remember many times implementation. we’re that in the later

what to of whatsoever. an not a been very has it’s happened some it of So, pre-COVID. But team indication has also an that of executed headwind well is indication and fulfilment

margins again. perspective, in Kim. Got I quarter, noticed almost gross touching you’re it, from helpful. a XX% the And then, follow-up

the should about over as first to time kind get is to be levels that that you. or XX% you you so since basis points the Thank we’ve net can helping mid-XXs think XX% Do XXXX. now you how of the couple we leverage of seen over I would next getting the frame think there the away years. closer couple think But XX%’s I from next proper margins gain it. gross you’re helpful. opportunity? of years XX think or

Sure, Scott.

customer get So, in believe type of XX’s sort adjusted EBITDA when it’s for a margin. of those quarter. were business XX%. see quarters of to that meet our of question a we few on back margin may our more little will to QX, approximately We sort much the an bring that example a be say with opportunity. ago, some another success add do The to Kelly margin as you bit better not quarter some on as in less the as of to well EBITDA again the sort think of mid’ish XX% needs one range. we as versus customers we be at annual any adding up, to was on longer-term least look hiring get In And example. mid-XX% we an those can which I yesterday resources comes basis always type to existing at low-XXs specific of when adjusted In you going measures future years we’ll

sort to annual a at looking at to to margin again our So, better way expectation improvements look But of get is that versus an until lens probably at gross to continue low-XXs. we’ll make least again, we the it’s it on it specific quarter.

Thanks Got quarter. congrats the to and it, quite Kim, helpful. you on great

you. Thank

comes question Baird. Vruwink the next Our line of Joe from from

Your line open. is now

would Kim, Great, something typical long the million for And initial end out. hello everyone. $XX EBITDA, XXXX million I appreciate you of if can to think next thinking start the $XX EBITDA the correctly, I suggest than XX% to the I is at growth. less year heard way

performance bit specifically number? in a to type that need are fold high of expensive XXXX that to type probably any be work the for or disciplined But assumptions sense that on specific and makes maybe any into might that driving back of there be So, planning. discreets

Sure A Joe, about when think for question. we’re looking things of I year. next the couple appreciate to

First of a while we’ve exceeded year. relative all for expectations year our what this the we’re actually EBITDA we’re position in actually to are nicely

levels travelling some Apart have Think a we’re because able area, gave of the most this again gave, future part. Obviously, are for the our are next Also, XX% meeting which that, prolong what going there it average is currently are resources So, the well more When can discretionary great. for our to customer of year, are been Because the not typical existing customers. people we our efficiency. is expectations of been occurring lower spend that fabulous a excess and we’ve of adding year more we’re just year, we of and therefore attrition employees are you needs of about which customers have as is success there this because little as to spend. not pandemic. which we’re so get a is we area that what our closer in and output higher implied and sales we the be to in guidance seeing is making forward think bit the as sure particularly XX%.

of back So, that to our increase then but there And point headcount certainly the pre-pandemic. areas. et but will than seeing two in XXXX. would of in bit cetera. what we levels hope to those relative hard sort are be be certainly that anticipate to And folks in our an XXXX to think little predict Again are being level at to travelling, at historical I we some to in more is the not a back we’ll normal. some office, But hopefully more back point

maybe that other really think are different annual ahead the those into taken account years we’ve XXXX a and we bit some two things dollars. So, EBITDA little that than to the as

that’s great, and since And any to decomposing perhaps to The it of ’XX. as the leading that maybe the wallet or quarter of helpful. does just growth. current your share compare contrast ’XX, you growth then, if the sort there, revenue and indicator about thinking Okay environment serve contribution point acceleration

that your So, more. really my leaning thinking customers that on existing the are SPS in-network is fact

basis to wallet maybe potential. we contrast share of customers prevent environment ’XX of there in next kind XX does other possibility that imply what I course, but know churn was then you’re that you your that basis on tell but kind of church existing the of later about the maybe that could or certainly Because don’t does more XXX months? point is today ultimately it words points much XXX with about use the is worry ’XX way the have to your of seeing and or seem solution. Of But model more don’t to what maybe durable today is indicative if a an the

Sure.

our when a on fall they’re think fulfilment couple to of going So, different about customers, you buckets.

So, customers using more those that there more retailers using of is a fulfilment volume historical. how to they’re activity with of us, that it documents of group are think than more

in of as in in some increase drop an increase And up example. ship, those ecommerce of form the trends show the the

are industries customers areas. so, other however than pandemic were to which And light in revenue into challenged more our the set verticals in from There positive customers trends or of we’re those customers. are those sub more a and that are translating of seeing that are some

And what this point some or at as go sort of XXXX. what some unknown holiday and so, those into retailers we is is suppliers season to happened of of through those a

of more So, again sections a sections nimble in electronic be that they’re those more are as are for needing well customers way. performing to well extremely as retail that where in

seeing or I just We’re and the it’s early too what other know some bankruptcies be higher in could sections, positive think outcome higher term. a potentially to

you thank Okay, very much.

you. Thank

question comes Roderick next Our the from of Tom Stifel. from line

now line open. Your is

Hey for I Kim, Archie. to hi questions. offer Thanks congratulations. like taking my

come You the use been partners. since on other demands we side. think Archie, out long acceleration you a it’s And time the phrase heard clearly to retail of the and this your stronger weathered it I storm relates as

up about fix it ecommerce bit you of sort So, kind acceleration a sort bit that that more and and or things of sort in mind. multiyear kind long-term go ask ship less seeing running a are asked strategies is just ERP of love dynamic. are here some about the the talk Koji a sense the commitment their a your your you it question things some upgrades, level hitting for of looping business. secular and you secular you Talk they maybe of with just upgrades, I’d that making a in this beyond deeper things and EDI. they’re just like trend commitments a from of opposed or if of little temporary what to on other little more could And Are transforming seeing that And to doing as get patch hear drop maybe that project gives really bit little don’t you ecommerce you are I’ll but of that.

Yes.

the just and pet I think, instead of et we retailers into overall grocery cetera. stores when segment segmenting

that the at is kind is big accelerating goods that luxury We’re this. there through really is of then that negative to looking that performing retailers are especially There side. retailers there more a this is and businesses normal are been are in retailers

automated. of bit as out to So, dynamic they product need are when have they mode, labels re-see are. onboard need and that they’re out where things there they don’t and They with how weren’t build not They different the slips to the are to suppliers on suppliers make was automatically packed. capacity sure If was a responses into and barcode doing it need coming all knowing have They no need are quickly. distribution quickly that little the they the center time real acceleration to quickly. packing of completely and it it

So, those the in big cases, chain. retail demand to there supply is automate to able be a

increased are in suppliers and faster think those past I onboard the like past for demand was XX we’ve is interesting. instance which in they’ve than had is even to for the very hours. COSCO There increased something highlighted

for in supply focused efficient. say to would that an I are on is can they hours the I add just so to much suppliers then middle, haven’t back more there sales Now the and on so There’s go supply for efficiency their is they hurting different a supply get to ones at suppliers. they cycle going. just in chains the think been in supply to the That they being chain. written then, adjust need we’re order retailers that they think shipping, there much done camp. adapt I needing if with sure this then to They little there increased are bit because looking it And receive is an to that make and need awareness overall chains need to the and the sometimes drop

are And If past there’s just drop pandemic, shipping. to get the lot you they at a them dynamics. then of looking think can also be

an increased focus think chains more supply there So, efficient. on making is and just I

that buy and a industry can industry of and shot balance solution is more and of to be dynamic quarters and worry other growth. the to with a it’s long the think suppliers strong a And and sheet retailers are very more XX likely them obvious by in and from leader. leader I to here the that clear growth, going here a private their row we’re buy we’re they set SPS not out around long-term give Profitable happening that not financials. the if that them, what’s for is small to company doesn’t and

So, a sales also SPS team I job rest of the our pack. think the has from done Commerce very differentiating good of

Yes, period the that the so look of What level on think nice mean and to you in, segment that’s we’re a see. really even that Is that analytics is though structure dynamic analytics a sort the which have. clearly one fantastic it’s side by the of reignite on ton a you it’s of good. I demand of nature And you’ve time is that for back analytics? is to which do growing on little When consumed because that at the momentum is foot But changes brakes the bit the secular changes for that’s business. this quarter. that demand just sort a got clearly the to fulfilment analytics, momentum what that

back The April I dead, in the were golf was were be going they crushed. no about will like industry is there the you came dead, golf. underneath they demand open, mean that unprecedented year. industries confidence look one courses I golf that customers business that play were mean is industry the golf they can’t different just think their strong. to Under off think remain an that Right, structure covers, we that biggest just have I

did customers what had that now really reduce they’re at they actually needed actually look contract, So, try adding. to we analytics their and

completely like the look are in today. And it’s see this, there’s a what going world well are they’re industries again, to we changed so, May. just stayed then other closed demand. And and are more can’t going May, what to have and up continue pretty especially as that buying April, apparel, cetera. to and remain of actually obviously when with buying think and with demand saying the you that from like not quickly level are up. is it fancy because the new now. some mean April not of look were we people suit, you’re things in really say back down purses we there’s you’re et a I and industries I in Are dressing strong. But the people And we luxury done down confidence goods you just looks home, keep mean, I that

more it’s do got that think and I time the So, they’re it have to they confidence spend value. and to that that they can that get discretionary implement

jump I’ll in Yes, appreciate great Archie. you, that Thank queue commentary. the back but was I fantastic, it.

Thanks. Thanks, Tom.

Thank you.

Jason Our next Celino Markets. Capital line question KeyBanc of from the comes from

Your now is open. line

for QX projects for at to thanks fitting typically here. their maybe on any the focus off Kim, found bigger Was Archie put some we in that Retailers me some stream in in Hi QX season. the of or? and all pull holiday

things just question the side. Week drop tech the because you triple more incredibly that an was I as volume I It’s ship it’s a know normal the drop think have fascinating strong, at week. double And our our like time one Cyber on team volume it’s we’re use seeing still than busy and because now ship,

holiday or is wondering really an the or acceleration. what season does You’re like look

QX. covers signing off some up lower enablement of work is in although the we’ve underneath sometimes activity need. be done interesting campaigns we’re the think was to what’s QX, kick it just seen in getting I And those and other that able to

through that difference numbers are probably those deals strong in you QX see from enablement when in a campaigns, XXst. So, December signed community were September

activity implementation So, just when comes. out know. the is just underneath But this I roll I the covers don’t and

they I holiday that nervous ship probably want get is will is place can way in we’re again product December UPS And on like. not would to fluid do to XXnd, the in December to at product. by get under customers going are the very be season think recommend do house you it, two and And my if you more know FedEx And it you’re that the going somebody’s of supply can of capacity on many retailers I if XXth, I or I order a what’s I XXXX. what to the the in that drop focus days. disappointed they environment getting be about chains

products some Yes. now, of like some –- And second they a I bit they That’s lot pace of of need. a retailers talk people are of of spend, little just doing adding lot what sounds one this upgrading the understand EDI’ed some right provider, is on talk more? around it incremental it this quite will more think well ship. yes them about makes the question, option. relative to of these can just these accelerated it sense, me but like who’re my Help some are some you drop of Maybe version, dollars are and sounds seems dynamic EDI are reinvesting they are standardizing a than

for looking a suppliers that have. expanding different supplier drop others partners new are investing different One is the there number their they ship. they’re Because their and they really are looking think is just networks, two ship for couple trading new suppliers, they’re of can footprint, I dynamics. drop expanding of

of So, of our trading expanding we monetized expanding relationships. be number they by what addressable market which really to total consider are partner the is total

that and lot you they chain work-from-home significantly the or a So, there that’s doing manually, are just a in feeling you suppliers that they pain more business have see that I supply think of stressed. already are you I with a think see

today need overnight If build you the you to going product center very also you’re distribution can’t you you because a not need stressed chain, it to to move be able need to expensive. either it automate distribution just to another you center to have supply it’s which or automate and and do

there’s focus think I So, a lot of there.

use mandate far less they on the the rule book as and their As most rule putting are the book. or retailers work all retailers focusing more that do do work a they suppliers way that build or is

that that. far anybody a of certain requiring does we know EDI provider, don’t As as

agent onboarding Commerce would that SPS their for do we what have the retailer Now, suppliers. the of want all provider to one is be and be

we or So, a they they use can either can and it. use certify legacy a and test competitor Commerce SPS would software or

think their them dollar when they because really if use to what use they a their against EDI EDI to that. solution to a that advise for large would force only I retailer a the effective has supplier have to force provider, we Commerce, try way own be multi-billion SPS suppliers that’s happens to them specific

So, approach our the customers. for a that’s approach we think we right always and do long-term non-inclusive

– I call. Okay, for great. No, you, the thank

Thank you.

line JMP question Our comes of from Walravens next the from Pat Securities.

is now line open. Your

for for our you on Joe Thank Hi, this taking is question. Pat.

around current you We’re guys about the environment. just thinking further? curious are M&A Any you how in can comment here

selling. is really although the fact is criteria environment is disciplined. and is valuations This remain making different, are which There people we’re much same to the it’s and about the M&A I to X) higher expansion think be very product Pure is very X) going which that Geographic customer continue on we focused main our three X) would say acceleration. acquisition, roadmap is

some it are well, doing the are we’re hurting, so we like past. in have approaching Some

be We continue active, market, to that and have sure in small our it. continue we continue to we capital to the competitors deploy know to be ready make we that are out

the course. very So, in much we’re stay

you. thank Great,

Instructions] you now Thank [Operator for gentlemen. today’s and participating, you. Thank you concludes conference Thank call. you This disconnect. may ladies