Model N (MODN) 7 Feb 232023 Q1 Earnings call transcript

Greetings, and welcome to Model N's First Quarter Fiscal 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Carolyn Bass, Investor Relations. you. Thank

begin. may You

Jason to This first Relations is me Chief today N. Welcome Officer; Chief XXXX John and for and earnings With Ederer, are call the call. Carolyn Officer. on Model Model afternoon. N's quarter Executive N's Financial fiscal Model Blessing, Good Bass, Investor

our issued release Our close market earnings was press and website. of the at is posted on

offer information an call The regarding of call for September primary today's is XXXX to statements. performance you ending fiscal purpose include may quarter and first our comments second with outlook quarter our this year and of The provide forward-looking made fiscal on XXXX. XX,

statements We statements or of Please risk views to representing and forward-looking our refer forward-looking These should disclaim management's the update of our our any upon with based expectations XX-Q today most subsequent any differ any as current as as may materially. filed to obligation recent in SEC. Form date. views not are outlook. on and be statements Actual factors relied

on during today's available call, measures earnings isolation financial website. included release financial GAAP in non-GAAP in for today, of addition, be Reconciliations the non-GAAP metrics is substitute which nearest discuss our the the GAAP will results. metrics considered a These to, should measures. addition from, non-GAAP or to in not we as In are we issued

first access today. and you Relations fiscal to the to call of at our press quarter replay the encourage release, I visit Investor SEC webcast our XXXX investor.modeln.com periodic reports website

our comparisons made fiscal results. in XXXX otherwise this financial call to Finally, unless be stated, year all will

call the turn me to over let that, Jason. with And

high revenue team I’m quarter on year. of welcome report start our range. our to posted to quarter our that very subscription at services and I’m the and guidance Thank you, professional total revenue, the results the that of we in pleased came to beat and proud call end first our today. expectations and Carolyn, strong

profitable driving growth to committed remain we ahead, year. throughout look we As the

to me. two that QX out important highlight like metrics stand to I'd

First, our SaaS ARR grew by year-over-year. XX%

obligations, our year-over-year. RPO, start reflects had performance In year. into a addition, which grew strong XX% remaining fiscal our visibility the our to or In short, good we business,

the Now of QX a the saw contribution I'd expansions, We of closed by numerous the in highlights transition, driven was from also from like renewals share signed healthy Success across new a base all the SaaS quarter. strong enjoyed business meaningful some areas to customer and we business. new board. logos,

transitions. with Starting SaaS

we XX to and pharma us. signed the N with During top customer journey begin their global cloud a company quarter, longtime Model a

advantage access SaaS allow platform innovations the to well will as as quickly them cost to give take Our more updates. them regulatory of and latest Model N effectively

N's the This to look on forward efficiently. to pharma just Model partnering objectives. more win with standard helping revenue the for of project operate is industry platform companies compliance customer committee their N steering global Model latest to and achieve sitting personally I’m this management example this and

development, In challenges, Lantheus optimization therapeutic complexity and scale manufacture In of Life as best-of-breed to had diagnostic several Lantheus product posted the new leader also Lantheus their which solution and QX, launches. address sought grown compliance a is logos. we established and wins and new Sciences, acquisitions we and with revenue in customer. a to products. in an signed commercialization AI-powered due

our regulatory as SAP. the integrating successful of compliance. N This managing State also products helping suite record includes Price pricing is commercial our Model and customers was U.S. to increasingly track Transparency while commercial in of critical Management. because contracting of global government also deep with complex selected maintain environment regulatory our win This experience and well as and

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such AbbVie, we company. strong top also expansions XX enjoyed a global customer example the our One quarter, at Sciences in Life During base. pharma is

into is us top merger mega that N with company Model being the great giants, expanded once standard and This fold is N XX global of organically pharma Allergan AbbVie's platform. the is a growing of Model again example through and chosen to another M&A. AbbVie their for pharma investment Following as Allergan, AbbVie where

Turning to High Tech.

closed N a of adjacent global several of to drive one We our leadership that business upsell was the Solidigm High Intel. core semiconductor out the spin-out, the industry is other Technology, selected in example Further, provider their segments. strategy Solidigm continue we land One QX, is opportunities extending during Tech. leverage Model position as our spun of in paying by flash dividends, and At of technology expand into time systems. and

and Solidigm has Cloud After Deal and of expand to added usage and going on Pricing Data live Revenue continued successfully Channel Cloud recently Global modules. their Management Revenue Management,

ago, usage. Solidigm signed year company expand recall, their a new may Model to global continuing to you on and as just N we it's great and this a live customer As see

example components ongoing stations. Enphase Enphase. leveraged adding support EV our quarter, be is N company the of involve their footprint we Model In how to with solutions Tech growth. by complex can expanded Management partners storage Enphase inverters, also technology High their manufactures relationship the develops to adjacent that additional Data is and a similar During that a and our Enphase expanded and markets micro semiconductor energy channels Channel QX, in solar also charging industry. distribution great technical battery

services. Turning to professional

and to to continues robust. quarter be the very an remains off fiscal kick our year. all-time backlog demand another very services had strong team Professional Our high, near

latest live. Following update Model and had this several N's customers quarter successfully release, we the take product during go

well management which Global Price payment of and Tech on of keeping High latest as for for companies and went our as This a innovation. once SaaS pharmaceutical med this our solution cohort during update large again proves to update current QX, customers new proposition A value Management application our live improvements leveraging our companies. tech includes customers our out core

live do is and continue Speaking of of a time Moderna. of new on to budget. successful getting The on customers latest go-lives, this example job terrific we

platform. focuses biotechnology As you know, that Moderna on disease its by company a pharmaceutical and leveraging leading combating mRNA is vaccine

they a solution the them help pandemic, Moderna's to Revenue Management scale their during As needed business processes. grew

decisions journey Price in Tender Management how companies international effectively reference products and Management started pricing, product in sequence across EMEA to countries. We our Moderna more with distribute helps launches their more with informed which our make to price on product Moderna Global EMEA. then Global and added

turned Management how in based consume QX, and delivery products. This can our wants Model how operations. Then we illustration land customer model is U.S. a solutions great Business and on N Services Moderna expand to to Revenue to of us to a our its support tailor commercial how allows flexible

product update. include our a that cloud our customers this savings dashboard investment Model in quarter, the fall innovation continued This products customer release Highlights latest in our shows to processing to N. industry-leading platform. of our commitment released on and new continuous During to we XXXX release volumes value demonstrates real-time deliver also our and

This on is delivering example great vision. a us and analytics of data our

analytics several drugs made off regulatory updates We better Medicaid companies patent to protection. application support visualize enhanced features We a we better manage delivered new also deal coming to changes, help and help delivered pharma to profitability. also

XXX today, opportunities report, identifies manufacturers. for we issued marks This pharmaceutical, for earlier revenue management. challenges and is survey executives responsible C-suite more directly on new of result XXXX Revenue State This of Finally, medtech and report. fifth our report pressing based our annual a the which Of high-tech than

As organizations solutions than the current continue economic more of important ever. are the and climate, quality technology navigate reliability to

one a The second row. the include, impacting this report revenue from disruption management supply year’s top is chain the highlights in year three for number theme

believe staffing products executives of Revenue State help processes. to expertise negatively due customers issues And impact is XX% insights create quoting. These bring management Second, life-changing downloading of to revenue their industry billions their XXXX encourage and inaccurate like losing by our pricing and of I market. and all finally, the issues their that from us to report empower or ineffective modeln.com. understand to dollars report our how read to at it you of website XX%

to and this thank with our our off year company are results partner leverage great growth around pleased these course, values the DARE who while I’m year execution of our in of model bottom customers and also to so continue I and proud to that core continued the SaaS world like ARR about saying the the a reflection I by on and us, and would dedication enters kicked also showing We strong the ahead. great with our QX am posted, closely excited that a solid am environment we of I conclude their with line. culture. me Let

will the fiscal and John to QX With John? turn discuss year to that, now and XXXX. results for guidance I over provide our call financial QX

and Jason, today. afternoon to the good Thank on everyone you, call

a believe we full As we the track fiscal start for right Jason we solid to and had are noted, year. on XXXX, that

revenue themes ARR One, about that our approach was the quarter highlighting the delivering our first both business by profitability, strength demonstrated The balanced business. SaaS retention growth and our as underlying RPO growth, improving net of and key of of growth. a two, and emergent continuation we’ve the been SaaS

grew end $XX.X our Subscription guidance of by top at XX% upper financial Looking increased million, and of exceeded XX% also million our which specifically for $XX.X the the revenue to quarter. our first the revenue range. to Total results exceeded guidance. end

revenue and guidance the professional was grew of at $XX.X to end Lastly, services XX% million upper range. our year-over-year by

we’ll numbers a In our provided non-GAAP in profitability, release. earnings of mind results be terms please of that reconciliation discussing our full is in our keep and

profit XX to improve, XX.X% year, of continued the in QX prior was basis subscription points. as of For compared gross XX% revenue non-GAAP gross year an last a margin of revenue. Non-GAAP $XX.X QX SaaS improvement the in quarter, increased margin XX.X% total XX.X% of subscription first million, representing versus percentage total a to hitting as gross

was year. last XX.X% professional XX.X% services gross in QX compared to margin Non-GAAP

sustainable, year on business with line As what and not we several operating saw said Professional XX% be our we margins QX. expect now, Services was in would to in more for have we this gross north quarters of

a is As Jason change mentioned, in not demand. this

utilization. the In of backlog services rather over but is our remains mix the professional for avoiding specific managing fact, required robust, and projects challenge resources

or million Adjusted Adjusted in XX% which to EBITDA the the per high first non-GAAP was XXXX, and finally, an the increase million, $X.XX year. guidance fiscal $X.X our end quarter XX.X% margin first EBITDA within net XX% of our And income compared of to $X.X quarter was at of share, range. was from guidance. improved last

driver Key and first the of to our overall in transition our business revenue. the quarter, results accelerating SaaS is

SaaS our $XX.X reached of QX, was over an increase QX $XXX.X year. million, which ARR of For last million

Our QX and SaaS in accelerating growth of has SaaS QX in from now quarters are as XX% from XX% been XX% we ARR benefiting the rate last transitions. QX to over couple in

addition, upsell QX, and sell In it our which XXX% our getting cross also reflects in hit ability net activity. retention from boost SaaS is SaaS customers, right number transition now but a to successfully

our another noted fiscal SaaS accelerating. revenue, QX, subscription revenue the we revenue year XX% SaaS proof to total of call, point revenue with on As contributing of this improved ratio full XX% of our total that SaaS represented last is In our subscription transition XXXX. for

versus our revenue versus million a convertible QX partially with by cash increases At line of with in of high our we’ve In was SaaS million debt. million and timing million up down last declines sheet, of the $X.X terms the $X.X September equivalents, on been deferred from balance Current typical our to biannual quarter annual revenue, ended $XXX.X revenue. the offset seeing QX which was up end level, but the bonus we in and $XX.X payouts the of due in maintenance deferred seasonality, and year. in payment sequentially interest deferred

depending fluctuate of on other As cycles, renewals the a timing factors. reminder, invoicing can revenue deferred and

revenue, RPO on performance focus of of In also an as our predictability we remaining deferred obligations business. indicator the to future addition or

$XXX.X key been which million, The For on our SaaS total $XXX.X the larger balance representing up has year-over-year of a to to tend RPO be longer-term with portion million, our we’ve was up The of basis. transitions, year-over-year. of XX% QX, our growth to XX% total been success RPO driver RPO grew current which deals. was having

$XX to range in $XX range million for $XX to and In be of professional $XX fiscal terms remainder XXXX the of revenue with we million services million total of revenue second expect $XX.X our outlook in in for the the the million of million of to range million. $XX.X revenue the quarter, subscription to

to we We expect shares. of count to a million. to the share million of $X be on are for in XX.X range adjusted range diluted expecting share $X.XX And of fully $X million based EBITDA $X.XX per non-GAAP EPS, a approximately

For be to a fiscal million million. to subscription million in revenue adjusted improvement range and to we revenue be fiscal the in in $XXX our million, subscription performance and non-GAAP XXXX, to In reiterating full total our EBITDA $XX range and year SaaS of reflecting to $XXX raising guidance the of $XXX to $XXX for for continued per XXXX, services which of revenue share, are we $XX QX, of the total summary, for year. range and expect million for revenue outlook earnings margin million revenue calls versus last in strong professional be the

We expect based approximately of XX.X in EBITDA in non-GAAP to a million be count shares. fully $X.XX the on share of to million to $XX million diluted adjusted range per and share $X.XX be the to of EPS range $XX

A second for few XXXX. quarter fiscal guidance regarding and our the reminders

some subscription payroll increased are taxes including to and elements for other quarter, second compared QX benefits. two of days to seasonal the there First, and fewer expenses revenue

treasury accounting and versus as fiscal new includes method. share fully for we standards convertible method of the X start Second, approximately the our regards adopted the to diluted traditional year converted the shares at count million if with the debt,

but maintenance FYXXXX. guidance ongoing the Finally, in driving decline our expect in maintenance transition offset ARR of steeper which we declines we business that revenue last call our XX% growth, is noted accelerated model, or SaaS On to partially reflects by our revenue. more by earnings quarter,

level guidance comparison to be expect in difficult. ARR, to do to last QX we at year again growth more easier with the and rate While not QX growth do elevated comparisons provide on we more year-over-year specific SaaS SaaS in and QX transitions due moderated the an an as get

year, full expect of growth our target we comfortably long-term ARR the For above SaaS to be XX%.

year. SaaS expect a trend of net also similar follow to retention this the growth course SaaS over ARR We to

that In we we track summary, well in executed the believed on QX are and year. for

We as we retention, profitability. our build to growth, and strong committed RPO continue metrics continued by and SaaS net momentum to business SaaS on evidenced in remain SaaS ARR improvement

to the for I’ll that, Operator? With any turn the questions. call over operator

question comes from Thank line with the you. proceed first Matt with [Operator VanVliet Instructions] Please of Our BTIG. your question.

the gotten about that new And taking transitions Yes. question. look that Good another the you yet you’ve pipeline remaining SaaS I like the I any importantly, afternoon. you out customers, should at through? guess, you haven’t top Thanks more gotten pharma there of forward? XX for announced maybe feel major much logos as to workloads how existing overall potential you guess, here, do think – for of migrate when we how going

I’ll Jason, that. is afternoon. This good answer Matt,

I’ll yes, points So a data couple share. of

we who number started at we the our XX% And as or transitioned transition. quarter talked was a had that either we beginning just year, about said of customers then fiscal were at now last of So ago, XX%. their

so plus under in with our of of got customers And are transition that XX% now or that quarter we’ve transitioning. have the belt made process this

will we for the year, an end-of-life And have do that’s at where stop of this end products. our support regulatory date looming we providing

for it, good XX% XX% pretty so good we’ve move this And into year, call that. to that’s to visibility pretty carrot got a that and remaining,

on an progress we to XX to on to our the make model. And SaaS move. was progress. of effect had we’ve quarter that’s just and customers our it because transitions continue important the continue us be on that made remaining few was we for So bullish top one This business

it’s of And maybe Are knowing any to question projects, maybe customers the willingness take just these there. macro the seeing on decision-making. to a on speeding the you that are secondary due migration that the of economy impacting the or kind there, conversely curious efficiencies the the overall up of is how macro? the platform and of future-proofing maybe Just sort things impacting

not the and transitions, one platforms. in their SaaS unsupported has to respect compliance macro go an with become afford of Pharma on just those regulatory issue discussions. Certainly, to cannot companies Yes. core

transition be customer base. SaaS continued very certainly So our prioritized within highly to

of broadly companies a investing. particularly We changes to signals, say just issues and to table demand some inventory coming the comment in as haven’t and coming maybe certainly in seen coming back more And the and back sciences. macro. continues major And demand I’d on also and any life strong channel issues out be pent-up high-tech pandemic there’s

in a not first for huge quarter. So impact us our

Thank Great. you. right. All

of Baird. line question. W. next comes with proceed the from Our your Vruwink Robert Joe question with Please

everyone. are up was, popped added is Hi, that established on start an maybe that does the this more Moderna actually of one choosing I question provide common then constraints think, back be, installed think available lead services? guess, have you tend when the going resources direction you that State asked Do Business customers I the can I’ll contracting the quarter. there. the Revenue And out Report, since have Maybe Cloud or might Services B to of franchise customers consultants part potential question, to they Services uptake within How anecdote about thing Thanks. to that Business those the your in Revenue base?

Jason. great is actually That’s this Joe, a question.

and we’ve around I’m We’ve But the have talked we previously. the started in actually pattern a started see have to this customer products business of few not base. a base. what We to logos services mix – but first. see not in sure also mentioned, is we’ve pattern software materialize Moderna the had about this

in driven market it or believe Management there, group fairly Business here proposition nascent, Tender not, value U.S. Global is but well fairly a staffed, the very use with proposition Moderna, access in out the their because is resonated interesting, for strongly tenders of and so the was – Services being Moderna strong function them. And Europe

teams interesting strong you see then to said, the Report. of continue portfolio to that services And and services that that strategic them for as and with broader the pick I we and really said to of very as people offer, on up needs. component John help across us And customers domain their our expertise addition a yes, for as Revenue we demand coming of their State are to

a I report just be pertain because the things And then customers N. more revenue actually A were interesting thought lot I’ll that to data great. how That’s few is there. in stick of Model there detail of using with could

So I suppose ultimately. this question, is a net retention

areas contributors overall so just interest revenue with two But go? near-term relatively is that these be small by were the your dedicated guess to that in to tend One then that second geography, source. bigger management. these Where associated that not one today. a consolidated was around does solution if some specific use kind of I highlighted. would And platform-based analytics geography, sort net this contributors or are you retention time frame? of for Could

qualitative make I’ll that. a on comments couple of Yes.

calls, where landed U.S. year, moved definitely Baxter Europe As moved in big earlier have was the mighty Europe – think an you another a and team of company to there to of as small interesting that excuse and we’ve been victories. past the different one talked the about then at in these I but investing that’s look Moderna this me, in of driving to we’ve segment things example, when is a we brand and sold And name some one companies

in so we atypical saw the to it two like cases. centralized geographically have And not buying be those is

scratched that launches the a example sequence certainly do in a that that We on Europe, I And in haven’t decisions needs and to products that is to is geographies yet. a come. what’s customers on across And price how product different those teams so and the of have having front, can offer today, pricing dedicated reference the great is surface products helps interesting market make then to I analytics we some of even analytic international better important. say would product think we and very cater

Europe. initial products was that of with landed one that actually at coincidentally, the we Moderna And in

getting look you bit it the think lot of that transitions. getting something boost dollar that SaaS retention today, in upsell and from analytics, a the as talked John net remarks, a as when So – opportunity of through driving SaaS that’s from not in his It’s at we a future little really is more and a expansion But cross-sell about of terms that and that’s a transitions. of number geographic on today. pull major really boost I

leave good. it you. Thank Okay. Very I’ll there.

Thanks, Joe.

Our comes Please from of line Craig-Hallum. the question. with next your with Bennett proceed Chad question

questions. taking job Nice on for Thanks again the Great. my quarter.

on along I we core and been a for got high-tech life since something I long because adjacencies the adjacencies how Jason, And out are pipeline in – it something from bit. seems I’ve you N, call a from sciences and think high-tech. in guess, just a really lot opening go-to-market very but I maybe looking know interesting. or a talk So – Model couple don’t on or you is there, approaching from Can laser-focused opportunity sciences you looked standpoint, and ton heard biz like semi I or far you that’s about, you’ve life core on know that the that a how you up biz think I what pointed the these it’s

a sciences well couple there’s it’s our We things base of the as I first life about and in about the new you exists I as say. it today. good question, exists space in our wheelhouse we’re from white Yes, expansion that as I in Chad. script. guess excited I high-tech would foremost, and geographic and noticing mean, excited a logos remain it customer today. appreciate

adjacencies. into a actively don’t and on we sales going spend so And today lot marketing

about, the illustrating that also we’re about this nice quarter as job in what’s do wins think, a today. markets the I the full a And even I characterize not talked of possible from of I art But future. away today in would deviation these I wins talked the standard

and products and heavily reward play are sciences things and in complex sciences, our well for are where recognition, look the some there to the regulated distribute of life pattern products. you channel those at incentives If life

complex side, a And channel, that pattern. product a that’s then high-tech good highly channel multi-tier are engineered if the a it’s fit pretty multi-tier – on high-tech products distributed the through for

fit we win, in, know about them, And can if And will of so been come opportunistic the with returns we’re patterns these good. we we the them. that and and pursue where customers these situations early have they some

Got Maybe it. for I it. John. appreciate one

mean, in for it you net three standpoint, next Just a of And quarter we in ARR a year, SaaS net you to new rest think grow Does in similar, quarter. the new up of sequentially the ARR new terms you good SaaS I very cadence of way the that year-over-year quarters? the it’s ARR seasonally, from put should Thanks. address SaaS whether about want year? ARR at then the one? it Any if as look to net December SaaS last

address Yes. that your upfront just Thanks, the try way. to Chad. of Maybe reiterate that we question and made I’ll comments couple a

we on that shy we see ARR, and stay how just we some commentary very terms to in provide year color did want guidance think but the I providing of SaaS specific try to out. laying of want

the quarters, accelerating growth transitions as we’ve actually been over seen this SaaS – back of couple benefiting And the SaaS in last ARR goes we’ve from particular. over last

XX% number up, year-over-year you’ve so seen the tick hitting growth And few QX. quarters, in that last

and comparison where expect we easier But on the it also be as to get an an second we elevated to target, as a we in over to of we expect at But get know, growth of QX, little again tougher year-over-year half year, have year. a long-term to level and number, QX QX look as you moderate this out comparisons year, course so at based is the we of little for do bit comparisons QX the then do XX%. would of year. that those last Our bit the this year-over-year

I we dollar SaaS metric would then similarly, of would trend. type same net retention just And add, to the follow the expect

was of and And see second the first then the over elevated over and a of the it little the as expect so moderate little we year. to half that a QX year bit in half bit would

you, And one quick it. last – then Got John. maybe one sorry, for

was margin, Just how it's about subscription It year-over-year improvement. obviously gross forward. on going – to showed that significant think

think so I Should you of Or do of there? I'll Then this much. sequentially. it around was improvement kind it to kind stay level? expect Thanks see hop flattish further off.

question. Yes. for No, thanks the

So a couple of things there.

in I that QX, would increased we what first, reflected say, the getting largely we're SaaS mix from saw So revenue.

at And total improvement when year line, is that couple we year. helps higher improving piece look so was of that us. the QX And of margin, saw an QX points and you subscription so there at the SaaS of that it a mix this versus in last

payroll cloud that. One in taxes headcount-related seasonal thing organization. that headcount-related over team, our that like I year, this and have hit on hosting QX, uptick course, have, would the expenses for things do our a balance line, caution we of you of in expenses support do And we

And progress general, making good do will in so has to with SaaS. the and also. that to it shift But line a that we're of impact lot

job much, so nice you thank again. it, Got

Yes, Chad.

Joe of Our your question. with next question proceed Truist. comes from Meares the Please line with

color you're picked they product the much so I'm Transparency Price appreciate was on it specifically there for I modules doing And up. hear Thanks curious the the how on to the just Lantheus, interesting quantitative customers new with or current question. have as and logos that taking guys. attach with rates landed well. you as logos. new any Management around comments Hey, State one if for of you qualitative that

question, the for Thanks Yes. Joe.

they're continue is even over state we few strong. and build states quarters demand has release years. importantly, reported the the Pfizer since year, couple And more to forecast new partnered see enforcement next last to with price the transparency last been the And product, stepping enforcement robust this and be now we've as to So up rules. pretty enacting over we continue to of for

turning existing is customers a would definitely Transparency pipeline, and Management not – it's at this as logo if part And Price to product. new us they're and a looking of So pipeline garnered logos to well. a our new in a about our I it's say base of and of it's as our base, deal, bit quite got just also lot of well every in we've the every part tied And interest customer State as deal.

good So add-on product. good a got easy it It's it, it's us a solves It's but been with issue. for wedge fairly a major get footprint product into implementation been a new to logos.

State been yes, product Management So Transparency us. for Price a good has

Awesome. hear. Great to

Solidigm. Management I Tender like material for much XXXX. Thanks drivers these talked think had year. Management of potential what questions. some the for percentage quarter as exiting if in are there in and It and with this growth you've could I'm now a the very you Price success just revenue Global right about they be sounded Global curious

Yes. Certainly land. are and – and implies, we their important list both is as by manage and Management Global specifically Tender XX the Global project Price of rest customers used the products our world Management name that an Global to Price in Europe. in and way U.S. price Management both

that So global is pretty the fit pharma for product much product market universal for companies.

that years that's so a number over honestly, product quite now, product. of seller been good not a And a is it's us for but a that's new

process. are is Management health where run a for through pharmaceutical through tendering centralized tailored really geographies Tender Global purchasing ministries processes

tailored That's And that is is for been so really to companies. demand it Europe on. brisk newer and product we first specifically it has geography focused because a the relatively again pharma

the Price talked just Management, Moderna Tender of we've with recent that logos that Global combination, as most new And about, one-two Global some being one. punch big Management, with landed we've

So the in how terms also products wallet they're share, terms account. land they're in we and important expand then of up of and open opportunity an in important products

Thanks again.

Joe. Thanks

proceed comes Needham question with your from of Please Ryan & the with next Our MacDonald line question. Company.

talked of AbbVie-Allergan questions you have in deal sort you about the Thanks quarter, about opportunity existing and sort with also and the nice a the Jason, the for on quarter. of taking excitement the my within Q&A in the congrats base.

Just all to just when here, curious, of that what and in like you've the what comes Thanks. we've acquisition. past the given seen looks table few M&A the purely over an seen deals, historically the that expansion M&A terms opportunity from post years opportunity

That's question, a Ryan. good

AbbVie and case N, the this seen get the and M&A in the have combined potentially have benefited balance, is company, same product exact we not for potentially catalyst we've and with expand two footprint, M&A transaction Allergan usage, that the see, and footprint the to will geographies. us the others a and typical we so On Model of pattern that companies well, from in, will as is this a with

has Again, M&A a for has, us. and for front good and in So us. upsell get to opportunity speaking, been nice catalyst been customers cross-sell a of generally

payroll That's moving for taxes. some updated of the about helpful. the talked in maybe on maybe terms within John, some guidance, the seasonality then of and business John. higher And parts you one

step there adjusted forward at investments is is guide second Thanks. we – the the for Or by in second going other into tax additional versus that you're primarily As is I second pulling guess, down covered hit incremental perhaps quarter, the then the look payments? the that being back that's that quarter EBITDA that quarter, half? to

maybe of there. a threads different Sure. Yes. in No, couple

side revenue is first, So of on just – actually itself, things. two factors. really One reflect it's the with guidance the to

round revenue, about have that in million so fewer We of two cost of subscription us days subscription revenue. $X numbers

QX or, to that's piece second the – to is QX of calendar first me, year. expenses, pardon due the The being the quarter related and

we December and to other so quarter. benefits compared payroll the And have higher taxes

that those rolling really So factors two it's into that. are

investments sequentially couple that sales you and generally, And making our think last then if been and QX look operating see of business. of in the making in been marketing investments then And in quarters, the back results at and probably in in particular. QX, terms starting last go over in year expenses you'll and QX fiscal have we and select just R&D looking I more we've

focus as So model our product those well. to on and we continue underlying are capacity, sales and the

the appreciate there. I clarification Excellent.

the comes Securities. line Goodwin question your with proceed of Joe from Please next JMP question. with Our

taking for I questions. the much so disclose thanks in that. you had revenue Great, my quarter? of missed John, you first if did maintenance I apologize the amount

just did do update on that, annual basis. not We an that so we'll

year, on so that million XXXX, And in not thought down we this at our but end more be fiscal did just And update That or would will going last to maintenance indicate be annual believe metric. call revenue the that I we of an had maintenance we revenue. XX% we're quarterly. $XX.X

Understood.

Yes. Okay.

that going of think Can license in the forward? license believe that revenue of term you about I and so we about term should maybe $XX stability about subscription then you And million revenue the talk Okay. stream or have line. just how still

your I the down where gotten It's sure what overly not is not disclosed have frankly, subscription say comes I'm material. level, that number something pretty we've small in not and would million some $XX in the But That's from. Yes. that still to past. do we license line. a term activity

the across show and are things of, standardize last people today, State came more different trying more to conversations single management looking leverage reaching they've in Report Revenue guess companies out regions. share expand, I then efficiencies in with half the finding is become having that are that they and businesses? Are – systems me for are seeing these globally, those frequently, a And maybe in on guess question their as platform? more captured type additional acquired of kind survey I you of that revenue company's to or actually of nearly different cohesive Okay.

Yes, in suite U.S. product tenders our that of time. here Europe over is this I we one. that the companies full will products unified and that there's using answer example, take expand consolidated of layer then vendor, for on the of definitely having continue to Joe, sit And are, products Jason. that scale I for in economy global mean simple some is do yes. reporting analytics and X top mean of provide I'll will the the

their who with talked environment. with needs keep yes, up call, mean, specifically on Moderna and customers increasingly So as looking can X fit about the for we across different geographies – I are fluid vendor regulatory I this

definitely So that's tailwind for a us.

you. thank Great,

Joe. Thanks

one question. for time have We last

from Peterson question. of Our with Please the with Raymond next question comes Brian line James. your proceed

Brian. Hey, for Thanks Johnathan McCary on this for is taking question. the

with solutions. you post anticipate and a thinking transition So into transition that sales investing growth balancing of of qualitatively lot sunsetting see guys how narrative? you Thanks. growth, there? after marketing of the just margins I'm and the you trending that Do kind more on-premise curious SaaS about are driving recent the Or how

I mean, the Thanks I question, of Yes. there. a there's things couple say would for Johnathan.

to have coming and from who portfolio reported we a more product other bookings hit throughout of things we opportunities. majority actually space course, sell last the of where strong has really are and of the point broadly than SaaS the logo As opportunity and gone it's into the our we the through customer a have tipping One, white year, new then, reflective things. a two transitions, conversion; SaaS of balance

really I have And as hit year. tipping been the that. that driving have today. seen argue you John And to noted the in sales investing last selectively with prior that would and really we So really I put talked the then point of we about, one answers product just in marketing business SaaS component what's when that after for that life the transitions. questions, is

Got it. Thanks.

Thank you.

our for question-and-answer call to the turn session. Blessing I'd That concludes Jason back over like closing remarks. to

you, today. everyone to and Thank operator, for you joining thank us

are Thanks we road out a person. and discussed Model profitable for many this with in XXXX quarter started the our delivered at today, investor to again once going look and you As to joining seeing good today's of N I again be on night. strong great and growth. forward quarter events year have call, and on fiscal several a John

you does Ladies and your Thank participation. this for gentlemen, teleconference. today’s conclude

your a wonderful disconnect have may You And day. this lines at time.