Model N (MODN) 10 Feb 212021 Q1 Earnings call transcript

Greetings and welcome to the Model N’s First Quarter 2021 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Gwyn Lauber, Investor Relations. Please go ahead.

Good afternoon and welcome to the earnings call for Model N’s first quarter fiscal year 2021, which ended on December 31, 2020. Model of Lauber, Relations. Gwyn is N’s Investor Director This Gallegos, are the Model Ederer, And Officer. FP&A Reuben Chief on Cathy today IR Chief President Jason and and Officer; John with me Accounting Officer; call Blessing, Lewis, of Executive N’s Financial Vice Chief

performance is upon subsequent of any information forward-looking press forward-looking earnings any factors XXXX today’s management’s as this the quarter may in our for views statements update today fiscal to you expectations statements. with filed and forward-looking call our date. obligation outlook SEC. issued based our first website. recent Please year These views close to of may XX-Q after call year is outlook. our or risk and Our current on the differ on to The as with regarding our quarter of representing full materially. We was include as refer and our Form on market be disclaim any and results XXXX. release financial posted Actual are relied and statements primary purpose of provide should made most Commentary second not fiscal the

year nearest GAAP measures. from today’s I results. will during or on as Reconciliations metrics our not is call, and webcast this financial results. issued the stated, available quarter considered the included In GAAP addition, today, in to, are With to earnings isolation release website. financial fiscal let Unless discuss of turn These call metrics non-GAAP we measures financial non-GAAP call. investor.modeln.com addition be in for at the Relations which replay to fiscal should a over in periodic the non-GAAP substitute first of to that, XXXX to call all year SEC our visit this Jason. release, you encourage Investor be our in access website our XXXX me will comparisons the press reports otherwise to

sciences to life this which share more John acquisition meet which for will XXXX. acquisition, strategic we the this focused beginning business, a of provide focused market’s in best the employees this be we good they several in In solutions a deep fiscal am Deloitte’s serve about and Model will our and XXXX that joining innovative pricing for support Model positioned we can our N total belief on N on updated QX, and more results a products, you market domain continues revenues. life-changing will chapter will the developing the their even year focus and today. for contracting needs. with developing Gwyn services powerful started combination better better years. record results them, are customers unique the customers’ With world. with strategic The our new ambition, of fiscal of everyone. the afternoon Thank expectations for call, us that Model and this software is in strategic key produce and Later markets allow so that next to year our vertical investors. delivered support exceeded solutions mission-critical effectively I that subscription and N, With then I to Thanks, growth with guidance acquired report customers, and to relationships pleased and expertise our on needs are believe for over transformative us I meet our rationale deliver business we products that to

for non-GAAP very the strong EPS revenue, revenue, QX, revenue, organic EBITDA guidance in Before by quarter. adjusted subscription which the like talking services more start would signing in included Total our company about first the to acquisition, deal and our largest I history. all performance exceeded discussing

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updated over Now guidance. our provide call the to discuss to I John and will financial QX John? turn results

Thank you, Jason.

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Now we ability the you guidance good operating shared in strong our results exceeded management. looking QX, we expense to demonstrated our the call performance our with J&J business first our deal, deliver growth. services in at on to profitable Several contributed factors utilization and our professional strong quarter, for including the and that

December as acquisition Finally, a the closed on reminder, XX. the Deloitte business of

consolidated our impact had balance income no our was sheet. it statement, So but on it included on

professional subscription revenue XX% revenue by grew to and XX% the revenue to million, million grew grew For total $XX.X $XX.X $XX.X to million. services XX% quarter,

line, from revenue offerings by to subscription our maintenance million. grew $XX.X core subscription the Excluding XX%

our for driven part All of on the by quarter in the these results exceeded expectations over-performance J&J with deal. subscription the

a professional XX% QX services Turning year. profitability, or in was to versus million subscription while margin year, in Non-GAAP gross the million, for quarter QX for QX gross XX% profit XX% XX% year. $X.X non-GAAP year. XX% revenue in non-GAAP last for margin QX EBITDA last up last XX% to was representing versus gross from revenue gross margin increased which a was significantly $XX.X was XX%, last of of versus margin XX% for Adjusted

on or management the versus non-GAAP share drove our million $X.XX over-performance the during on and $X.XX. $X.XX earnings of Finally, per income $X.X to guidance the EPS was revenue non-GAAP good Again, per upside net share. cost quarter

sheet, the cash balance $XXX.X we million the with of ended equivalents. to quarter Moving and

quarter after fiscal Model acquisition the This very balance from N cash the the second year, Our the business relative acquisition-related same now for and and update to period the for like update free cash would guidance our on fully be for especially expenses. guidance acquired last cash improvement will reflects provide into I which with you reflects excluding year use and, software of XXXX. strong Deloitte, offerings. services the flow, to integrated

dampen as results break but contract a our near-term our we will impact will from such, revenue going outlook from deal out the may course As acquisition reminder not that last the recognition, increase includes revenue our the period. Also, call, of the forward. structures over of

last our look versus approach give remaining it would To spread on which will our the of the while of you elements situations continue We XX% complex, vast was deal and of grew is structures to our utilize having you multiple year. multiyear be many a portion sense performance transactions one the was a linearity by forecast upfront, with of balance this majority years. impact in These the transaction accordingly. the such J&J QX, special will approach the deal could this over QX business, obligations, of to revenue I In example. be encourage at can and J&J recognized sometimes with change

approximately the in revenue be $X.XX we range count XX.X subscription to $XX of the a EPS to Now the of total loss negative negative to range of quarter, to of be to specifically of share million loss a fully revenue million, second $XXX,XXX the of $XX.X income to $XX.X operating million, in be a range expect diluted million non-GAAP non-GAAP on $XXX,XXX to in based shares. $XX be million and to for $X.XX

expected range Finally, negative adjusted to of EBITDA in be is to $XXX,XXX the breakeven.

the $X.XX the $X.XX EBITDA to fully share per $XX income $XXX million of $XXX $XXX adjusted million share revenue of Also of operating in we million non-GAAP range based XXXX, and fiscal full million range XX.X for $XXX to shares. revenue of on in a range to is year, million million, year subscription range of non-GAAP range in to the million to in be $XX.X income $X.X to expect of the diluted million, count the in For $XX the total million. expected the

additional acquisition. impact the incremental of regarding give you some most changes guidance the the to result acquisition, annual our are the Finally, of to of the color

margin overall year. as we the the quarter to mix targeted Additionally, a coming we make would and services a due decline from the margins for gross balance investments, of revenue from and in second the acquisition managed standpoint, expect the of

As that highly earlier, acquisition Jason us indicated expands for a strategic the this market essentially is an opportunity, but our investment year is year. initial

Thank specific make synergies operator have questions. over an cross-selling and Operator? opportunities that call has and us driving sight a confidence growth. line to profitable of year We record cost team a the on joining high will now the for will of degree this turn today. I strong acquisition accretive XXXX the in you here fiscal track of and for good the

Thank go Craig-Hallum. Please Instructions] you. Chad [Operator first from is question ahead. Bennett from The

questions. on a color Great. if I maybe Thanks for guess, you taking just first my the acquisition, could little share. more

the of for the So think was I increase indicated the acquisition. the year to related you outlook majority

of in of, acquisition – some say maybe color you Just guess is just on typically wouldn’t know the kind would you contribution how I don’t can annual the type any from and run-rate of the software you services? give type mix think I when of future relative but I would versus update I of see terms quarters, number, that it, business there make you an of in

Yes. one. that will this is Hey, Jason. Chad, I on start

indicate the acquisition X-month expense. that this in our revenue of change change guidance, the due and of So and impact is to to business attributable the is did most we this with both

the you information some on directionally give does this So, size.

XX and expense, disclose size thing a got but other only so we business the prepared coming over. revenue are of sense just about had you customers The of to not

this from the buy everywhere are of per size revenue get can to that does have sense customers deal run-rate customers is interesting plus all the pre and services revenue and software the pharma customer, you arrangements. are up delivers that through software services, prefer recurring and and a XX that revenue to business top business So, just that this

Okay.

your revenue be will there will from your flow some So acquisition? standpoint, or the just all from professional through Jason, line subscription P&L services in the

Thanks those for small be services flow that X majority of Chad. to X it live through but The customers clarification, projects there anywhere from and asking to subscription, to are vast Yes. tend does get months. professional

the mean, just I Then follow-ups Got one Jason, picked sounds business, maybe it. up bookings like Perfect. actually. on two or organic the it

seeing in monster a fact like pipeline sense called side? a with And it both improved? you in ago big and J&J tech, XX And even very cloud if – can large from or them go-live another the there the business step activity of has tech from characterize conversion your then standpoint, high or we deal adoption sciences or Micron think You tech deal just other quarter. cited X go-lives, signed are you life the on beyond that, you months if relative relative I to acceleration the just seems high that a and high and

Sure.

would on and customer said, has did new I would of Since find on area point with have couple out deploying has quarterly it’s like XX, goes quarter, and the have early sat going achieve that came of sales of resources fiscal really our continued outcome making the was as certainly this can customers. up. next. in discussed. out, then does has big she kind articulated success. of we the we are we reviews through as of level summer deals tech spring, the yes, I tech highest with base focused we to team, and think really pipeline, most the year been are we this improve. as I on also high that up how been as are as first more our activity continue high of business do steady the the quarters it’s on deals that’s to I And but we move. this late with to a And get with narrative focused mean and And why best the there That bottom So be preferences been area to of say last sense picking pandemic last on one name, And that for the tech, you projects how in the you to have year good football high the say, there. come to feel early really types I started, we these and progress our

last expectations one in terms attached one ramps. deals Got you your of just it. And gave with then the deal me, on of in maybe percentage guide for

expect you hop And rest that the Is I it, is last about of talked of XX% you much. with in think Thanks I fiscal guess roughly of still – through that do First, I some percentage quarter and to percentage type deals. off. will the the ramp that persist, year?

that Yes. Chad. Thanks for final question,

guidance our slight to up just that does So, continuing a deals bit, little QX. our was tick roughly at up ramp we in assume still a are XX%. It

pipeline historical We are return into second XXXX at steady will QX. expect to head in then year, we do into expect to of as ramps the we the norms. that look we deals state that deal that and especially the continue of probably mitigate the forecasting as some we and half But

you. Thank

Thanks, Chad.

VanVliet BTIG. of is The next Matt Please ahead. go from question

questions. from little But on terms timing in I of in them I overall the J&J both wanted what you just for U.S. Thanks deal, an for job the a deal the hearing migration Great my hi. quarter. here curious business? the expansion taking Yes, start to in last on the And about talked of obviously am to the after motivation Japan scope the bit you the are project quarter. dig and

question. Yes. Hey, Matt. Great

this were are in we like particularly stays over themes mission-critical have as regulatory that the the would home months, I definitely customers the we pretty consistent reality but from other been customers system last say probably agree continues think has ours, on make that current sure are as nice tailwind grappled also that a deal an element environment and I with fluid. seen they all it’s the for post-pandemic. to think themes would be that I us to So, work really with XX And us looking with a

So, are the then to are is alluded that of in script, customers and some products the for with building we users forward and some to this and consume. just new us cloud-based excited is secondly about applications to roadmap easier their and on our of those pretty J&J And I looking partner initiatives. our

say really it those consistent pretty the customers So, was themes I would And of drove those combination J&J. well. that as are things across the other big

on And sense timing-wise are to to to least be what kind following in you portfolio? that that’s up isn’t that product, that, broader of new market that sense of have addressing able you we the rest currently at and of a going any share are the co-develop you mentioned do of available the a when might

areas of for about relative to getting spring kicked XX tell going project on planning J&J Yes, are X completed. government of we in analytic new respect will does are it’s product J&J, off months. the we it’s really, the specifics you for agreement not I phase, the out just focus product our But and a it with in to to the really is some disclose that procurement. the off. kick And what That going the project until of to will run market on specific

be will that roughly it this – co-developed product timeframe. in So will

Got if it. can one And then here. maybe more I

pre-revenue large bigger was, the first around traction kind the deal buying some recent of Deloitte that doors this for several have the where of motivation how customers b) those I you has of kind some a) of into already some some opened or guess, weeks in that started the, you the and here, engagements? – of conversations have M&A the customers some biotech of much the world seen type owned On –

have business Yes. also bigger how and call we customers enterprise sell flexibility certainly of of gives of acquired companies. as to just Deloitte and would The want customers need And we do buy But our have of certainly, the established market companies, midsized some services companies, from the really us functions to those software. those product many ambitions need with paired access that become companies course, them, to software. large most

allows off family into swath offering and them just cover this N and us Model have So, the an the of much bring for to a market broader them.

Alright, great. Thank you, guys.

Matt. Thanks,

question from Ader Jackson JPMorgan. is Please from next ahead. The go

for at Rainmaker, the complex. taking my Talking J&J Great. years their is in U.S. to the pretty question, guys. installation Thanks over

they & I’m Johnson curious, going to entire cloud So of just bone? piecemeal to are maybe there’s installment or it Johnson on from kind some the the on-premise moving U.S. and is left still the be

Yes, great a question, Jackson. that’s

This Japan about, So their J&J talked U.S. is and next. their we’ve business as flight. is in is business pharma then medtech

one to So as is is your there business which still medtech well. some that bone we���re words, meat to use that over on over, working another when on comes thing the converted get with them to out figure

rough some per $XXX,XXX, looks mean, couple the customers. What of customers of customers a on are seven some I consistent? thousand the acquisition, customer per doing basis, revenue some then pretty then on or range? kind $XXX,XXX it so or a dollars I know, pretty small are of awesome. about that customer Okay, the like, on math and And pre-revenue don’t those XX just is hundred figures on

directionally for of customers the in contracts, much your larger big Yes, line They rough vast majority portfolio a that is math have like. pretty average have couple but is that what with you calculated that looks correct, the sure. do of

Alright, you. great. Thank

Thanks, Jackson.

Joe question of ahead. Baird. next from is The Please go Vruwink

within and relative deal? then those expectations for primarily just revenue with reflecting the the And that line. wanted is is J&J to And performance the is I growing the few ahead, of XQ, subscription streams can maybe piece questions, two everyone. the Hi, looking upfront should what SaaS Great. one update the – legacy a start the the between upside XX% at? maintenance, in growth be you mix SaaS

Yes. Sure, Joe. This is John.

number on quoted, we first SaaS the that the $XX.X that would J&J revenue include the from million So impact QX. in

In quarters. last terms been subscription and forward, say steady over that, that I maintenance mix has going between several mix would of the pretty the

that change So I here. wouldn’t that dramatically see would anything

Okay.

you acquiring XX% first because of and And new nearly then and more yet couple over strong sitting you’re again, Model growth And strategically kind N really great. how N. EBITDA business of obviously, margins. thinking era a the Okay, a Model quarter, stepping next evolving and a maybe here today, of years about SaaS this back high-teens talking see usher about is this

era. we’re I think already seeing currently is an interesting what

product so the an But interesting And you a bit know, development number going you accelerate maybe the is expansion maybe, tackled are maybe allow Deloitte what I shortening And TAM it question don’t over your now map? but to Deloitte a little bringing piece. go deeper can time just within could now. you I years, frame? is of to why into just that think you guess I Obviously, have the is things road is

that’s question, Joe. great Yes, a

So, a things in few there.

for I trade-off you. just expect is company past certainly in really deal have did today’s about participate as a that we the of decision. today the especially the with today cash as in. where will of exchange as your that an And bit We talked late about opportunity Analyst to into was more this have on, year agree we as heard was little going, the And long-term pretty this N what tomorrow you And appreciate really summer, era we We balance from thought would process summer, we – but exciting. sheet our certainly the get is So and as increasing to it the some thought growth – be a this be prepared between talk Model of us. a comment we we Day in was more an goes remarks, had opportunity great prudent well to given profitability and on in TAM. a

continue software We more customers expand to to area are our core to ways and business business. that will value that continue be looking the at add the of of and our out to the portfolio area in

our is and resell product, could product gross-to-net that business calls data business ambition software for which can as publicly us an enable for And offering, our services opportunity looking I to customers bigger. that about a subscriptions. analytics we excuse and came we customers The an have be have that And expand this more if rates with our to their helped higher on software stickier offerings. not – is that to can we in and base. combined and have see business our consume it second analytics last that we think over, me with be really do tend also splash or finally, analytic see our Deloitte customer area today. essentially successful as that a satisfaction small in and big software several We the the of be that analytic talked strategic business, an our analytics I business then with to The our

that Deloitte well. helped this enable And business so also area as

That’s great. Thank there. I you. will leave it

Joe. Thanks,

go from MacDonald from question & The next is Company. ahead. Needham Ryan Please

a next the product X you functionality, to Hi. you Good be Model sort migrating Cloud? N view afternoon, the it but – just Jason. well. the there to customers perspective of Welcome, between Deloitte of What Revenue getting John, existing – a I like as from over Obviously, on wanted sounds great of thought here? rationalization X start do new the acquisition. Deloitte and are how over years will to some sort first product Deloitte on

customers No. base. were doing to of in that meaning products was Ryan, part I this – that project of customer diligence, the Model Deloitte It’s and mean between strategy base had one up that company very N led overlap it other. acquisition, the we diligence a and the the in was the products as it handful had using their the just customer small in we were supported little our work interesting, we done

then components like. are solution. we business purpose-built and really And services. It’s There really the software technology is it, a very modern. business of the X software built to two X has to business what So with It’s deliver elements calling services last to some to in complete been combined are this be we the years. the

data that The that architecture. so built also in technological design business. not very we to expertise multi-tenant a architecture it’s telecom, and background engineering very think only bring part expertise, this clean our enable very sets of has they’re with comfortable team large but and So a

from technology we’re products in a skill set of solution both as enable building it of portfolio, of new and components eventually this the rest will think the So a that perspective.

from that logo guess is market where this obviously potentially? of How process, the at from diligence of big moving role, historically perspective Model N played helpful. segment does perspective, Very pipeline the forward cross-selling And a But when has not what it you plenty there a there? did like pre-revenue I affect a new learn opportunity. during go-to-market Excellent. looked sounds the you

have And it’s we’ve the they’ve market between sales Yes, even of logo plus fact segment that going weren’t our think, or expansion part what we shows points overlap really the market won the had would we roughly that to the market, is all wants segment of a on buy a after. you I great XX%, I communicated really we really question. of there of little that that very software it mean TAM in services. to the process, participated logos meaningful the

is vast and majority their the to was additive their in pipeline market So, what target pipeline. our of

much. Thanks very Excellent.

Thanks, Ryan.

question from of Terry Please next Truist. The ahead. go Tillman is

are is everybody. just high ramped of Unger how can And duration think please filling question. should deals This you my trending? you RPO growth? that we for versus been Dave Tillman. and growth in level first time. your how for versus the about Terry Guys, about Hey, That’s non-ramped that’s talk Thank CRPO

to seen ramps. I’ll add haven’t terms the bigger the I picture something, of dramatically say wants would John we and in Dave, Yes. to. if I’ll duration then anything comment and him the of of structure invite ramps on change,

for help Model terms as bigger XX asked are for the mitigate of our the and of customers cases, that new it to they’ve can employing customers X, had migration how we deal than – in which next longer some cloud refer and them. In standard really to time, ramps structure slightly are terms years. nothing but over the overall have ramps and especially N – really recommitting recommitting that I We

just utilization, and the talk then product to set recently opportunity about And there. cool. Okay, you mentioned data analytics just

an we You up over that for of Is cloud trending aspiration number products to kind that your have about over or a I term? that term look the to should you. longer high of level the move How see XX% Thank take X.X that. still more of customers. we long think medium shorter number that to time? increase about – to just should about in want

increases about X One, next Certainly, for I’ll script and have new nice it sciences, landing in new logos continued deals now increases those selling trends base. where XX of have believe been those due examples. – customer the the in And speak I Yes. just really traction seen number XX expand customer been of we’ve over – one and referenced life months and life specifically sciences. we to to most campaigns, two that is the products. of we’ve logo we’ve our X I with The in land been today sales on

it, so the we’ve call now we’ve that they last And products as years, catalysts into that it and divisions. I cross-sells themself then And as really accounts. up-sells, are those both and significant think of that the live, opportunity new deploying logos learned expansion seeing momentum upgraded as been proving a these to of footprint thing years for we’re, in closing SaaS into new there’s in and over couple go the couple well SaaS taking transitions pick up, and new transitions of meaningful be

SaaS as and So transitions. also I accelerate a byproduct up-sells of do think cross-sells

much. Okay. Terrific color. very Thank you

Dave. Thanks,

Raymond is ahead. The next Peterson question Please from from James. go Brian

Thanks taking Hi, question. the gentlemen. love references. XX I big the And for

be just the to really something of that you of and with in interesting in it’s is back And the into big other that you are kind about this, think products the other the say that pipeline members sell have customers. some co-developing did How you XX? Jason, So, kind with potential to of as customers start? that that could

years And with they’re where N Brian. uniquely mapping am the – Model With really that Thanks, reference. That I you. more to be a have Yes. to that big to willing committed, some for, be X-year maps as and That’s are am customers new move to of well I these help XX partner launch. we’re again, customers road to new build to of that’s product new as also respect in organization, recommitting with to positioned byproduct hey, if one my use another you product figured exciting said, sure a to a successful is customers really products, caught wouldn’t for willing you these think new to of have us. going I products. including about pay to an in going it, reference glad I say drive our has on X much you got XX software, been cases have lost get these And plus us offering, products. opened big to have door experience entirely SaaS we a running current, adopt customer out how

So and as pay to come are we up up, to close I up, going attention will these to opportunities continue come come believe them. have

any kind numbers? revenue the just qualitative kind contribution, in run rates business the sense what of are – on And of gave the but cost of color Thank I understood. you. or synergies Deloitte or more reflection of the Okay, assumed you of know some adjusted if a that’s

Yes.

was understand as focused synergies bring and well this focused. business businesses And interesting business. came Deloitte really products, synergies we the software conservative bring have that cost to as make costs to with around components then And U.S. of And getting solution and we as forward grow together that year development we are hosting our from cross-selling scale there which eliminating things the from more redundant it are revenue most We assumed how it. synergies in gross-to-net, cost over environment. footprint sure some then as there pretty of like how and economy Deloitte the like some

So, many actually customers. of are global their customers

Management. Tenders cross-sell an to Global also Management So there is Global as Price opportunity well as

nice a guidance give. And and synergies we thoughtful give do when try in try we revenue and we as cost So and the combination that synergies. it’s of be always guidance very we

Great. Thanks, Jason.

Thanks, Brian.

is next question Please Mannheimer ahead. go The from from Gene Colliers.

share you if can the gentlemen rate would us off under and Hey, welcome, with business? what any, and Deloitte writing how normalized revenue margin And purchase the accounting? on you the the Thanks, congrats run Thanks. be of John. business, on is acquired much,

Yes.

it’s pretty write-down, terms in minimal. actually So of deferred the

so in And over. the So were was then what there can by ‘XX. I we do over. And million we’ve would rate in the the limited and such, is And adjusted from our a this disclosures and of as I our an EBITDA guidance revenue, kind think to you of what today, for come of of in the last articulate, balance $X look in tried business, got million. sheet decreased as basis, fiscal terms carve-out call, run situation see terms that they’re by brought total was increased terms the did at of $XX the items we’ve that in on filed we XX-Q in change

you’ll And in I the X-month acquisition. That’s so right ballpark. if be think the impact annualize those numbers, for you the

think hopefully, directionally gives guidance I terms this where of decent that some in at. So business you is

to Xx you be guys helpful. by customers – uplift, have No, will more about the – to And historically, cloud. talked that very broadly, a with right, John. that’s your Xx transitioning Thanks, revenue

for I’m your that time that see over if somebody like play top And what and holds we would a true J&J matter. period Thanks. other general So XX out? wondering math with customers that

the that, Yes, given we’ve guidance exactly X.Xx uplift an maintenance. you of are has been on to correct, Gene, X.Xx

we’re chapter. are But talk range, we anything these deals certainly of And SaaS in as little little most in don’t a different more, so at that of and we’ve a big we about transition go are flight deals some normalized are just some we as the Xx, talking expect are through it that kind less. about materially

We are it. on got far data we’ve it into enough good that now

I sense. it’s make It’s... And overnight, do will period That we mean right? that lift? see not time Yes. what

do accommodate doing transition. a they’re deal is the depends for customer have structured, it it in that on-premise deals while software, their some on SaaS deal Yes, them to ramps these running is but of how paying

months. the tend more ones the J&J, talked still the seen of we’ve term X. do customers deal. particularly of slightly accelerate to that has transitions, the course expect term, over longer XX We’ve with standard I terms SaaS ramping about to generally asked for the deal that structures, next like these as over but some ramp big our So And the over term been initial they meaningful have to XX are which

That’s Congrats. great. again. Thanks

Thanks, Gene.

question from Goodwin Joe is from next Please Securities. go ahead. The JMP

taking for Thank question. much you guys. my so Hey,

timing of customers So kind we earlier opted great. seeing kind that provide And that when large coming? done would will happen? them, some is handful but is color there the for of set? the those ramp of start of when on renewals I actually that’s a be in you deal, you’ve cohort a believe could Any there

Yes.

X ramping we deals, So not years years quite almost Joe, ago, started X ago.

deal And some had terms yes, of deal varying those – terms. deals have

will deal excuse experience be for terms tailwind have as again, next seen a full we value. second at and renew on half renew there, deals me, generally but of – sizes renewing year, at our concentration at had a but QX us, discussed so deal we range of had will cohort, about renewal, we the good have And over continue full call. And that to rate. couple of deals renew then and years, in in That the last there’s the the of we a

you. Thank

Joe. Thanks,

of reached to remarks. now the Blessing turn and back session, the like question-and-answer have I the We for closing end call Jason would to over

our concludes very We Thank the look call. everyone, today. to for to forward you, you quarter. operator, throughout you, thank this all talking attending and you much. And Thank

concludes today’s This conference.

may for at Thank your your You you disconnect participation. time. this lines