Qualys (QLYS) 9 Aug 222022 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Qualys Second Quarter 2022 Investor Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to King. conference like speaker to now Blair today, would hand over the your I ahead. go Please

Thank you, good quarter Crystal, and XXXX Qualys' everyone, earnings second to call. afternoon, and welcome,

Thakar, Mi Kim, CFO. to results discuss Joining our and me Joo are today Sumedh and CEO; the our President

these remarks relate today's operating today, Before get press Any from or our to forward-looking differ cause filings we to obligation differ or and financial on this statements the or XX-K. our future Actual latest could would we that include SEC, based make results forward-looking materially remind you like on forth events Factors undertake a information no release we will including new to statements and these result our performance. results of may are I materially that statements call future in update started, that today and statements. that of generally Form future to as as XX-Q events. are with set assumptions

this both all remarks Investor reconciliation website. will press today's section a prepared non-GAAP the press measures presentation non-GAAP investor release. and present the included earnings is reminder, GAAP we GAAP to A And of release, measures. available as our financial on and are During call, Relations in of

with I'd now like turn to the So that, Sumedh. call over to

cash growth investment and go-to-market costs. and earnings CSOs complexity response sizes agents, pleased of focused to geopolitical We're innovation acceleration as and uncertainty, call. platforms generation cyber report operational drive welcome, growing risk quarter of Despite and threats scale. to second well to Blair, global driving security all cyber and organizations quarter continued as our macroeconomic CIOs reduce for Thanks, are within revenue times, to modernize everyone, as their strategy challenges another a flow we

stores, XX% our Vulnerability growth wins a include the and objectives. Management, these Cloud of continued and with customers down and competitive well will there of steady which to VMDR exhibiting Fortune approach customers global take XXX. companies I to of a In by market agencies, new and solution, as was partners. of QX, customers commitment successes multiple to the in have convenience customers making several multinational our is Response, Qualys worldwide. or and the our are financial broader quarter leading along moment help adoption Our existing in chain strong Key deployed the reflects sector platform opportunity, seen drive as Detection public expanding retail now the service with a share some VMDR Further we market platform

customer hybrid count asset competition, on given competitive management entered their and Europe-based over public, detection across front First, chosen capabilities Qualys with us seven-figure upsell customer platform's the a multiclub with environment. was unified Fortune adding matching for automated to the need assets, agreement performance, across VPN. the and VMDR, ease-of-use, into XXX expand while a existing superior and the patch interface its of speed without

Patch differentiators asset capabilities integrated agents, and response vulnerability alerting East solutions institution the to single new accurate platform, Asset ability win. VMDR customer a Qualys; the program with compared a all while CMDB market. complete context, on where and consolidating detection-only key integration, in to its The financial leading enhance a Middle abilities Management Cybersecurity Next, Management, in security in selected mid-six-figure significantly

partners and in America evolving which ecosystem. partner partner Europe We new launching cybersecurity executing regional signed further deliver expand MSS new up our our we've in May, go-to-market includes their agenda North two large our Since are managed to well, ability program already to services.

registrations by deal customer partners. new in increase an seeing we're Additionally, our

reach. expand we increase our platform, which our our brand our continues will strengthen to and in are partner awareness position, strengthen, broaden further share with anticipating market integration strategic an our ecosystem and As

customer agent. with other solutions showcased on assets our platform and Qualys' the differentiation in already taking the comprehensive over focus now most market case the innovation rapidly leadership risk X.X with same San the as in registrants, to exploitable quickly risk reducing vulnerabilities this by the posture. improving a attended itself Francisco Management of risk ITSM Patch focus a risk identifying at with help can QSC TruRisk, remediate to With we next speed. VMDR cornerstone they unified continues approach critical be differentiates the our side, Vulnerability thought on vulnerability by has on event with and integration, reporting-only their level. XXX year been Management Qualys. from strong programs year our for vulnerabilities At integrated of of platform security customers through On launch scoring

view unprecedented application Asset integrated External Natively and our asset instead risk point platform provides insights with Our adds recently time another into to announced and X.X a remediate Cybersecurity external recent capability new this to for experience scan assets. solutions all much as patching who patch opposed of just alternate Attack Qualys identified and operational vulnerabilities security Qualys' that capability. mean This reduction and of CISA. this with with as complete XX% research customers to shows the to IT most in include teams posture as can through feature. million the for on exposed by internal week, exploitable are vulnerability known validating our leverage to reporting visibility this blind customers, our XXX customers' Surface XXX-degree platforms we unknown help Management desire to patches with of that capability vulnerabilities the management solution an to instead organic for extension them. remediate we visibility agents have Management BlackHat with adding our asset Internet already At provide VMDR, over featuring just deployed on the spots the comprehensive

also risk of opportunity, scale, remediation to Qualys platform. and we protection In of can are our offer anyone environment, current of we given can continue our generate will to speed at natively in platform security will innovation, value further grow macroeconomic our outlook market quarter results the in remediating Qualys Especially XXXX. gap that and cash and the software integrate, prevention reducing Mi we acquisitions developed and discuss and quarter and for I detail point between our customers initiatives of extendable for platform While more we that, as organically Joo second in year platform. out to competition. security a they extend close cyber assortment summary, the and offering the believe platform and see the products believe many the bring they that risk get providers invest cloud-based is tightly With single third through the integrated over integrated assemble capabilities that to to claim difficult the our to full don't to coming because call more turn key

good and Sumedh, Thanks, afternoon.

I with X% XX%. XX% second growth $XXX.X ago XXXX from of XX% Before revenue, comparisons LTM the Similarly, year to for for Management otherwise. time, solution last revenue to the the Revenues stated I'd growth over We're unless and in with earnings share. year. in on billings consistent per from to prior figures quarter that like contributed current Patch all to financial calculated non-GAAP, are to period. note of based performance continued, QX, are both double-digit announce financial start, over period bookings and strong our pleased for growth our first In grew grew rates million, year the except growth XX% and up

Qualys adoption to demonstrating by customers, growth of addition our product distinct strong contributed Management from ability differentiation. bookings drive In Patch new X% existing to to customers, through

spanning size to helping new turn onto existing to single Qualys Our by organizations increased by LTM wider seamless for enabling customers cloud, efficiently deal Qualys on-prem a mobile as increase is visibility their from posture. X% ago. organizations a network-connected associated the both average and average respond applications, deal to environment. Through and to of XX% real-time agent, of range container of integration size workflows security a and year continued threat secure LTM devices

such, and fragile, customers customer. are most looking to at to As extend needs difficult value operationalize deliver time for struggle their significantly solve to remediation pressing Qualys to help point increasingly the legacy solutions to security

year and different, XXX with continued by us. with from $XXX,XXX XX% This Qualys more spending excited of a solutions represents XX%, penetration VMDR, we're with of increased a the customer customers customer And adoption now growth This was XX% adoption period. or ago. large quarter at up spend from a no ago total continued year

the by and our resonating representing proven share cash for margin. scalable landscape our excess of shares second generated to adopting the legacy of in quarter capital has coverage performance XXXX margin. the to point meet cash to to the while our our of cash and $X.X from that's continue customers, $XX.X outstanding last single-agent of Shifting capital now year, the to leverage model security With repurchase with million We our CSOs over million, was QX, to profitable second shareholders. flow. and market looking shares. the platform and agenda during confidence scalable was strategic With $XXX strengthening million our The XXX was today's strong currently Adjusted was plan are platform full phasing and into staff expenditure our the for million free volatility. a deploy to authorized continue for we quarter drive cloud threat significant sustainable second a and margins are Qualys, to Our and cash the resilience on years, strong compliance approach demands and increasingly invested for over four platforms uncertainty remain leveraging cloud And the guidance and $X.XX. to we continue for demonstrated agile, of Year-to-date time operations to the of easy year-to-date EBITDA future to and costs. return is $XXX,XXX XXXX XX%. million that out XX% In invest we our $XX.X time manage, XXXX million, and continues organizations back of solutions rest CIOs superior representing EPS XX% model both margin repurchase to including quarter flow and on position. $XX.X been and quarter third our to growth our environment. focused of reduce business business native, to easy remaining bolster to over repurchases,

or $XXX and million. the to compares now bottom prior our end the for million year $XXX million revenue million, XX% to to range representing in guidance raising top $XXX.X of of year This the revenue growth. full $XXX.X to full guidance of a be are We

to the mid-XXs. our our planned in This increase growth be strategic In an range revised full in margin raising EBITDA from profitability, $X.XX. year. guidance are terms now Partners to of this range $X.XX of of implies prior investment of year the second half strategy. the in This reflects the we to $X.XX EPS to guidance $X.XX in the remain

focus So capacity investments Alongside is will functions. as management our leverage continue investing current our the we increase to enhancing network our expand large program well sales in drive in our profitable relationships to growth to and and their product as capabilities, partner business. on further and support initiatives distribution marketing digital in this,

we third be quarter, $XXX.X range million million, For to a growth. expect which $XXX.X represents the revenue the to XX% in of

the of to expect We be $X.XX range $X.XX. EPS to in

$X.X Our to million planned capital expenditures in QX is $X.X approximately million.

expect flow we and durable product of full our highly geopolitical cost upside the and the large to on scalable the opportunity, more are is we QX in XXXX, million with the becoming maintain drive our are believe pleased growth profitability and differentiation of conclusion, investments that but leveraging and strong customers Europe, in a with $XX term. conscious growing For while In cash long believe million. particularly line the from positioned the cautious market industry-leading back with this model to range our their we situation, $XX macroeconomic on budgets. and remain security well top year to We offsetting over results

higher levels I agent dynamic questions. value answer of of and associated of to vendors with playing the are your and well We interest see see consolidating Qualys. a With that, to single Sumedh will any customer happy continue that to proposition for

RBC Capital will [Operator our question Dan first from Markets. Instructions] from come Bergstrom And

line open. is Your

for the partnership Hedberg. spend, them? higher impressive platform you down seeing customer Matt into It's think those the customer of the that's Could with I have driving larger that spend. $XXX,XXX and real Dan around you maybe part presentation, Sales you're that trends Bergstrom adoption customers and a drill

Yes.

last a they I VMDR, think what focused is customers and customers, which of I sort one as get these now, that we of in deployed the years, right those Europe. that example seeing of with on we're few gave

Cybersecurity adding looking We Asset Management. at are are VMDR. expanding with Management, additional Qualys licenses for additionally They also Patch

see value sort additional deploy VM of us actually able differentiators I to I that we the other in them but helping are position space expand additional continue where to to -- also don't will Qualys in now think out from additional license, overall, of that players, and by to offered add Qualys. is of get customers, think, right they upsell those the the able an VM able market for be being they existing right? also So, products from capabilities VM to now

are their in success terms overall, this well their cybersecurity can of very We that because, And and partners makes that into the of these stack mean deal what to excited customers also integrated with about strategic pretty essentially are at large these us point, we programs. sizes. strategic

value customers. we more to so opportunity bring for conversations that the us these what customers to with And as visibility large on can gain have we creates more

Mi. Joo for maybe then And

bit remarks, marketing? in talk about channel here into you perhaps the and weighing of on leaning lot prepared you how head investment mix over this that second the half on a little count, the the into prepared previously? in more Are but about the talk kind channel digital the There's you're of than touched remarks. call investment 'XX, here a can You of in

and did shorter through And the indicators are We business. that's terms investments their initiatives growth new we a early well us. and in program this And leverage accelerate our the in that direct seeing for and that in thinking were with year. definitely announce out partnership can are. partners, We working of are we we term we balancing seeing earlier

And us, in areas. so investing are for all so we

investment look As a as we does our partnerships, increasing the that guidance marketing increasing at said marketing in growth. EBITDA margin, a healthy as if you for that And take before, to and as product the headcount the indicate well. happens well digital be

our next Trust we'll from Thank you. Fishbein take Joel Securities. from And question

Your line is open.

a question have to quick Joo that. follow-up I Mi,

are to just visibility update the of just channel? to an not for on You hiring the where guidance year. love had also with initiated the confidence accelerate in in sales. in the half your investment give back the also you some us Can you that, get And for

Yes. Happy that. address to

the of spend the as we I far faster to increase year. had and think that at year, beginning this more

see think spend. in that think our bit behind year. the some a demonstrated definitely And last by I progress, little on what we've that there, With I made hiring. we're than that's we increase better

QX marketing, So we've for X% prior example, growth just look the a versus growth, decreasing. we've a spend, I think And is that, if the been taking last years as that's year-to-date look a Even non-gas year-over-year you that year. XX% to seen in growth take sales the at at period two XX% and the highest in recent years. same

that this We're sales and So than up more XX. last know net the marketing was the year, headcount that I half by up of in only first by year.

in So, in and to forward. to ability increase continue more we're optimistic our people going hire spend

the just That guidance. was into your then visibility And great.

Yes.

visibility our into how momentum guidance our the customers. our at business current We lot current of similar business. discussion a in of other our look we With informed The our that and billings, I to peers that uncertainty the the by is trajectory play think think that deals momentum said, with have in I is the right recognize our is there. companies. that now

to We continue ability accelerate. are our optimistic to in

we next thinking informed finding really informed balance the the guidance, after growth months that. be is had terms can revenue of last increase investments, is our that tell and at we'll revenue achieving confident investments, this think we by at non-GAAP a ability as the right at then of of the really that a in terms to look XX% take what feel in the deliver And that's initiatives and you the in and the year. in in to our second beginning in through If in the year, We by half our in look realize that that taking EPS, what able acceleration six implies healthy guidance. you

Capital Thank from Nehal our you. Chokshi will question come from Markets. next And Northland

Your line is open.

hear you can Yes, me?

Yes.

up Is a correct? billings, on year-over-year. Short-term strong was that Congrats that XX% quarter. Great.

That's right.

a in represents that And deceleration. Okay. deceleration slight What's narrative that billings? short-term the behind slight

business. fluctuate to the that other the of with to that term, the certainty this time, of in see said, our the on do on more volatile from tend quarter-to-quarter, now renewal do deals because on that's delay. the even to not point revenue, and top the us reason hedge basis, we because companies billings. billings near side market, I the that's reflected But and slight what timing the you'll seeing that right happens in some revenue are is of and in normalized is, I that means think, the that do just especially Quarterly the an duration in all with That said, tick Part our down. would current LTM we for the and headwinds have

Mi, Joo terms actually but then, there, mentioned in you play macroeconomic seeing cautious in on remain of especially that And you billings? or out that Okay. concerns are EMEA, bookings you also your through

do We -- our we're rightfully discussions, bit so. a cautious, in little see

think But be on it's I our all discussions that high business. significant demand. on with think we companies that customers, We to are. don't impact a going see still our a based our

at that although their budget is friendly. prioritizing a and spend vendor right the the our the guidance. And Company as they whole not in have is sure that security the to reflected spend their that's spend investment think are I decreasing, and scrutinizing looking make

D.A. Kessinger next you. question will And our Thank Rudy from Davidson. come from

open. is line Your

years. several the in versus guide, largest up think On I the of in revenue, beats of put terms your last one the beat the you've

past the quarter new VMDR? just as products specifically, really opposed solid existing If in more so you customers, into other drove in it maybe despite was macro? some more of Just what to you from the maybe the customers, the where the expansion could quarter upside the management, bucket saw upside out

Yes.

I as the signed. we're think that early indicators seeing right now,

think products. into is We're seeing first We've Patch this our an the always newer Management. we that I our upside we've speak there's now. adoption that know some color time provided kind as right products newer that like of happening to

So bookings Management I the of bookings. where by more that well. than material business. Management for more the felt as mean of our X% X% may we first even And is be our encouraging this Patch Patch new that, And the was fact quarter us came from to

to at XXX%. rate, So net expansion which our dollar remained that's contributed

I that more are are more the existing We other well there's opportunities. view strong customers X% and cash solutions. is still current why the retention think With a in small, customers so given starting seeing out upon increase as provider, multiple that's to for cross-sell it it with of pull It's as just and that now. and business customers, we situation, on do does opportunity cloud looking that that a us as to management to our security huge upside. starting consolidate there said, think very security focused And

back versus you'll the know Got you had wanted sounds bit said S&M to think channel from hit headcount previously leaning headcount double-digit you it. double-digit sales direct. year. circling like But year And no? the or just growth in that do towards I this it still you hit hiring, this you're more then in on commentary, a growth Certainly, S&M

yes. Yes,

target still on are that. we So, for

account as investment. avenues sales still are growing. to and but marketing balanced digits, double well have The other sure a by We that to make we approach looking into we're has are targeting we

Thank from from Hamza next will you. Fodderwala And come Morgan question Stanley. our

open. is line Your

a for Sumedh, you. question

of versus that last of discovery portfolio others? thinking there within there years. seeing over its advice out broadened management the be I'm ever. security compliance IT color give across seeing can like and where has demand Qualys a prioritization asset more or Are vulnerability portfolio you're Any maybe would than you more helpful? few areas any really Just

great a question. Yes, that's

million what I provided color the with growth testament as are a we reduce from VMDR. deployed becoming these bookings, I have to think the from the we we customers, that think the report XXX have our on that them. we vulnerability, customers today, on is to if business have for a Qualys continue just agents not not Patch fact it for patches help you right, look but also critical at Management, very fact But to really just see healthy in the

is to on multiple those I'll asset And the has So asset, traditionally while issues tell go focused you you Management Management Asset are the you me of Vulnerability have Management, out. just The and Patch and aspects if bring really what across helped then on the hand-in-hand. broadening the figure Vulnerability Management, really it together. platform go customers different tell

the actually are they to they so of each to in our opinion, they more do Management are Patch see looking with built And or see solution that a help VMDR into is Management Qualys and that visibility in get leverage external terms other inventory. who likely, also bringing Cybersecurity they Asset attack of is that asset lot can surface customers go into them when

all that with for to how especially them, of in environment out vulnerabilities Management the to see as as first be your would then solutions how than assets to value, your our current macroeconomic Vulnerability can looking critical, they get that surrounding we more more additional can I become and find already they more conversations start get all So have. the they they are important continues fix the customers functions, and call

demonstrated they're to just amount the It Qualys exportable put who other it some put looking and to tools it, difference of in why scan Cybersecurity Qualys as that for Qualys are we marked area time, to that's research excited do those XX and and that to patch, were and of be kind top of versus takes today, multiple patch. takes are that customers to There Asset fix teams. and starting so them focus some vulnerabilities using which actually of out. we the Management and a out to that the asset Management scan multiple really most was who quite are to the we And able we to where a quite to for tools an see are reduce customers using bit in with time Patch of was take find

the amount time a helping are it of doing them really broader platform adoption. when takes We they're reduce

So see. we the within areas I think those that the are platform

also course, Asset Patch things things. But like tend other buy and really other Cybersecurity being purchase seeing and in and instead of account take VMDR. we deal directly purchase So have the sizes Management go Management customers file business which reflected coming new our with of VMDR are where VMDR the Management integrity few we Patch into to that only off first of getting monitoring Management and kind just and and is a Cybersecurity that Asset

So that question. hopefully, answers your

Yes, understand currency, OpEx, local revenue, of currency. on on to negative but the exposure super about your just is believe, which priced is Joo positive potential because local And the impact was understand I of FX. you've I Maybe XX% side, hedged. just there, that for and OpEx wanted is XX% got that I Mi the in helpful. then

think we there should dollar aware headwind XX months? then we over for revenue was the side, maybe should on front side? OpEx the the Just any of that the how on the you be stronger next And benefiting margin the about on side billing

we side. you hedging revenue place, Yes. on program, expense have Because said, forward just of both in contracts our the like and

offsetting. it's with in Year-to-date, on said, greater hedging for don't we annual some see basis. on benefits this But half not second how an now. seeing caused material of become it's and year. be hedge, really that I we're of revenue. that we're right right still are -- it a programs working because will our It seeing we that and the part is, significant could so It the gains or the now And us losses what don't

same expense hedged our losses expenses. of we the which thing, side, INR, see offset each XX% less. the more like other or benefits about the is On and We

of why being that's a the don't couple in I it see months either. it in so for the for us next material hasn't years. us been margin, material on XX last And

Yun Loop will Kim from question our you. Capital. from next And Thank come

Your line is open.

solid update helping new nicely, trend of give acquisition? overall is on product among existing us Joo on quarter, customer you mentioned terms Congrats can a has with front. in points new Sumedh, your XXXX? acquisition VMDR around strategy acquisition, customer kind you Mi. very new the to your But how out Obviously, portfolio regarding another play What been large Sumedh you continues strategy and expanded data Global of VMDR your especially the and especially some customers. customer

Yes.

to think, at with the new we pleased are right seeing level, with just I a add color very high what now. we are business

we As the in for have quarters. that few changes in making investments you know, last area been

effective bring these to lot that that set ends programs. that solution they we average size, deploying right together. business and new able are becoming show in terms talking along the a for operationalizing with multiple these so, what of are with in increase purchase customers, were is we we're and the to bookings now, combined of seen and up -- things interesting And quite when the quarter them, seeing actually value is right, them with a we we're in situation the cost the them And which competitive exciting can more us have for our that this amongst highest which in deal because us tells that

to So to it's very in of then later. take not for size as reflecting it's the be really that business, things the these solutions see okay, that's not our and of deploying initially the being able able And buy take of things. other that. this some out where these point cost coming they're these Patch bag, side of the to for think of customers helpful I on then, that's deal X% in is new at And value reflecting average only up, quarter. being Right of Management reduction the of well is just have able going to the out VMDR say, the a in we'll look

think days, seeing I overall, the So momentum side. on but quite that business with pleased new early we are the

rate And has past a years. every or to the of not point to sequentially, understand or down? VMDR to the for fairly certain potentially peak increased the X% Great. penetration quarter consistently trying just slow penetration Okay. couple then at whether Obviously, X%

you kind a of entering and also of as us time? rate can anniversary perhaps are the that time half? -- third slow of Now second first third bit there around If half for expectation just some you renewals is much that you're then any or give you VMDR mix maybe of second sense your on slated this that how year the VMDR release, for if customers up adoption VMDR versus your can hit

Yes, great question.

market, by which launched on reduce differentiator to of really risk the remediation. been our with And everybody X.X capabilities for within to want significant leverage in I purpose, really be which well VMDR the we really the remediation for launch, the is received have significantly significantly. tools and time continue along continues two of think VMDR, innovating VMDR capabilities was in our ranking, bringing and rating, market, on VM recently, with where bring why to to terms ahead really the to risk stay years is we customers, in we that else we focusing additional exactly of ITSM a to ability opinion, quite

of together at, rest kind the capabilities cohort So, look purchase can customers VMDR. I and that with capabilities of the think makeup really then just on that that VMDR they our of it's not that

which some get So to then excited to External it get bring to assets VMDR adoption can so them how we easier the additional add additional capabilities, launching, these as see with, Attack Surface launched their into these and been to just has which value did this of agents, our we continue which VMDR purview. innovate see of benefit that the get make more VMDR to and adopt to they customers with can additional for them X.X Management, we from adjacent also we're capabilities strategy week capabilities, VMDR, are

So, -- think We're there's there [Audio I seeing VMDR, we that customers have who is see early Gap]. adopted adopters.

are adopting So, adopted who that customers the We're some we I are -- there's seeing adopters. think VMDR, early on who that. that, have is customers see sidelines

maybe and towards not there's application customers We then and for get bolus a for the of today, them we may leveraging of board, are to working VM on be obviously more rest scanning. that cohort innovation

that to multiple we look an from angles. look at opportunity So forward, upside but continue different us remains it for to

take Thank Goldman Sachs. Brian our from question from you. And Essex we'll next

Your line is open.

on A question. Brian. Charlie is quick for This

more getting essentially about in impact FX talk outside are marketing can of the I Like So, U.S., discounts that expensive be of for deal, instance, color the would top of strength associated? sales how you But and mentioned on a whole? like the impacted huge as FX impact that there just more wasn't like you your Is great. because line. a the dollar? Any has know pricing the

Yes.

in aware ability because things we integrated are especially think continue macroeconomic around the conditions, that about more capabilities the the having value with are of the our to conversations obviously are of to be way a add cautious we heading, than rather the and I we platform different customers, are but positive of pure being play.

have provide customer of budget do can of solutions customers have been have can we or the us terms really right? to for discounting. way, to the in only help Management, point instead So that maximum discounting value where them one the that focus more Management, it when overall the that are rather than VMDR, opportunity their told conversations, Those happening and show stay Cybersecurity, that help to continue thing to Europe, been on get cost Patch given. about these they value reduce Asset to of they out additional that conversations in now going customers addition competitive are getting into being conversations excited in So we recently the positive they sure us make

continue our through well to evolves, multiple things have, but positioned disposal with we with these monitor on we than to we value show stack that we at that just the and environment feel have discounting. the see customers So work overall again, additional how rather to focusing

you. Got another I And guess question.

operations expand any Q-or-Q. from you seasonality cash that decently thing? be If that a color just regarding Is would Just great. could over declined

Yes.

tends Our to cash flow fluctuate.

similar the And but that's for balance. flow so they provide whether normalize AR does be the mainly from prepaid ago also years the year-to-date, And been at from where in color down be have to operating might two why flow or we quarter it cash XX%, it where the one year-to-date. due cash look our fluctuation on

question our Henderson from we'll Thank Company. Needham from Alex take & you. And last

Your line is open.

your that it related. portfolio? degree I kind I context not the economic of is, tough has delta, gotten portfolio which that a the and relative product a little looked you bring are new that of are environment? can against -- and of how much has much callable how in this benefit obviously their how One companies positive And in a question, question you to or environment conversely, for pricing you when about had these how was wins, getting a allowed environment? it to under expressed two to who different better product the were how pricing of seen macro know they're are bit in this into about bit foreign actually translation? reacting to talk have questions, you a i.e., have a is they down can Europe overcome might order range in ask, the last you little to pretty last much having harsh that environment but And struggling And displacing additional you of talk significantly that XX% quarter currency in

possible first. answer I'll the ones

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Thank Thank conference you. And this does your conclude today's call. question-and-answer for session and patience. you

You wonderful may now day. disconnect. have a Everyone,