Blackbaud (BLKB) 11 Feb 202019 Q4 Earnings call transcript

Good day, and welcome to the Blackbaud's Fourth Quarter 2019 Earnings Call. Today's conference is being recorded. I will now turn the conference over to Mark Furlong. Please go ahead, sir.

Good morning, everyone. on quarter us XXXX full joining call. earnings for Blackbaud's and fourth year Thanks review and of our provide will we Today, financial our strategy. in growth commentary operational performance the four-point context our on and results

Joining questions. me Mike President Mike Vice CEO; open and then and Executive the today Tony Tony for Blackbaud's prepared and up Gianoni, we comments Boor, and Blackbaud's and President the on call are CFO. your will line make will

the measures and that be specified, isolation forward-looking contain GAAP non-GAAP refer call. differ a statements substitution of in financial to note projected. that today results Please a cause representative our to our measure recent Unless how information more measures. to comments supplemental not uncertainties should combination this on is in we otherwise and and release we and measures for non-GAAP of more results Please A most believe note could materially subject we that business. of is other XX-K our both our non-GAAP filings schedule risks that more those available We available last Form only GAAP detailed considered or for refer financial actual to are as Relations Investor GAAP on website. our Please presentation a issued from from will on internally reconciliation those night SEC and risks. press in measures non-GAAP

over on Investor investor activity, available engagement Before to our I'll upcoming our website. which I Mike, turn the briefly call cover Relations is

Orlando. James our the quarter, team attending first Raymond During Institutional in Investor Conference be the will

call New investors with We that, turn will and holding Mike. I'll to Boston also York. over be With in meetings the

achieved initiatives, quarter and Mark. strategic thanks of our guidance solid We our the today. success. morning business, full our finish Good revenue great everyone per midpoint company QX a guidance, thanks with furthered total teams earnings long-term year execution and our strong to was the our year. across positioning for another financial ranges. by the to XXXX for and the we call the Thanks joining And exceeding share

Our our approach the continue our and and meet drive needs culture employees we expanding over team success our customer strengthen our to global to of modernize of base. X,XXX talent and

A Maggie than more few in and company's talent HR, joined Resources than of service is Maggie Officer, bringing and as management, leadership change her at People we experience development. organizational and inclusion, ago, weeks leading Mellon, people and succeeding company. mergers Maggie years expertise I'd thank more announced XX years Driscoll leadership and effectiveness, for recently, to acquisitions, and the has diversity Chief Mistretta, Most like executive at his HR XX with Human Blackbaud, BNY team years leadership after outstanding John spent is the XX Global with strategic who for John retiring to management. responsibility direction, and

of over I'll usual, strategy our more provide the in it growth updates to before turning results a detail. in cover our context to As four-point Tony few

customers delight great power the two a Association on in $X integrated half revenue and strategies to investment We're XXX% realize million. Alumni increased and leading market's and the than Blackbaud more innovative of payback our Target over value Blackbaud a U.S. of a with XX,XXX Blackbaud, Edge and they cost their able fundraising engagement years. over by rapid on The first built Improved with over focus through set. million solutions. Analytics XX,XXX the lasting realized Academy NXT, were According efficiencies. Financial of to Blackbaud CRM, members $X is return with through Foundation, with is innovations of for four solutions customers purpose growth Naval power A the driving a product creating example who

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to $XX through market and in our development. [ph] opportunities total over billion the adjustable active Our stands we evaluation internal of TAM at expand and product currently acquisitions further remain

strengthen initiative and strategic position operational final success. for efficiency focus us on Our is to business a long-term the

our and offices of executing know, office leveraging with organizational workplace Charleston, customer into a geographic a Sydney more we're replace and our facing comprehensive and designated flexible as existing to our you footprint better our London, our we've for locations hub new roles. to locations footprint. Austin, objectives some strategy upgrade expand As strategy been and align We've

Blackbaud flexible marking and optimizing a we a we our had delivered we milestone our finish as full In remains enhancing Overall, the strategic footprint moved a London Heading strong to outlook office our into effort completed alignment experience and recently, employees workspace, our teams. we year global initiatives improve productivity strategy. optimization enable our The the will Most our on coverage, a we key continue in digital and market largely utilization, positive integration we solid continue is with geographic sales furthered offices the new improving us to with our and into this serve. in JustGiving daily XXXX be workplace our of we as positioned Europe and to uniquely significant for XXXX to within markets guidance. XXXX effectiveness. we have transformation financial our

and software last made positioned customers, before opportunities cloud Tony. good the cover Q&A. and shareholders. changes now to it capture model, years large to we business innovation, The ourselves truly leading in the well-positioned call us. I'll over performance We've of in greater the further we're better structural of scalable us significant turn over ourselves company transformational the behind and powering operating a and increased now our we've in a market company as open our for created are built up social changes front to to Tony the culture differentiate across financial employees, to the deliver detail as value several

morning, Thanks, Mike. everyone. Good

to to Over our further and for made market model, innovation business. cloud go ensure course of XXXX, drive the investments scalability in strategic our our customers, we expand

press to website the performance. I'll financial year QX and results the on guidance share. quarter so midpoint Please our for earnings can full fourth of to us full we to Our your on the ranges our revenue and posted materials our guidance deliver yesterday's get we financial and investor on to and exceeded key refer allowed detail release both our full of year questions. highlights focus per Today,

recurring QX on into and XXXX, increased anticipate revenue posted over an carrying recurring XXXX quarter solid organic through that of We Fourth X.X% basis. revenue growth performance XXXX. X.X%

decline the healthy a a recurring quarter and represented during quarter, as see shift revenue in continue time versus our is QX We which total mix declined X% of services only revenue to and other revenue million in of the XX% one $X XXXX. mix fourth of

organic a or midpoint an and points of XXX revenue the X% X.X% on full delivered X.X% guidance and growth year total basis XXXX we represents XXXX is than Recurring of revenue, on our an On which revenue, over in exceeded XXX basis, XX% organic million basis. which represented grew basis. higher

is in and healthy be when that decline ARR We for to our within focus compared opportunities with and nearly to of line as XX% the the total continue a YourCause and towards in rate further services space. performed the One continue the was decline This opportunity XXXX. excited decline ARR represented revenue and on I'll in versus bucket. $XX we XXXX. is an that business about the long mix and mix the other optimize also our decline run declined to XX% our mix bookings of this revenue X% million, time expected acquisition which to of shift accelerated note and expectations

excluded in YourCause calculations XXXX, in included XXXX. organic be our but from revenue will was

our quarter Turning gross was margin to profitability, XX%. fourth

infrastructure margin guidance full continued public migrate the the XX.X% a is full year $X.XX. expanded including an for model, to of our million, operating execution gross per exceed third us on our an of midpoint earnings was internal income XX.X%, our cloud operating to us diluted representing market and go party guidance cloud to to for program our of initiatives providers, our new XXXX on XXX XXX our Strong to service as we For earnings per and operating margin year and brought deliver share. efforts point investment of share year our partners. generated versus margin implementation We which XXXX. for enabled full decline grew market, year solutions our partner diluted was further basis

we quota headcount, the We've carrying sales year XXXX. been with sales ended in X% XXX aggressively growth versus hiring and representing direct

and major in to we the executives quota most call carrying I we dollar first made last As mentioned associated change when on reallocated XXXX the overlay organization our to last structural sales executives. account account

account execute bag drove reps effectiveness more prospect the and improve force expected, As of account full increase expect executives. and with than our we in to productivity sales sales is our sales time quota and we we our And of that levels The the we XXXX continue executives for half as XXXX being heightened spent to in on within forward. in significantly improved going the carrying initiatives. carrying expect territory this key mix attrition normalize

and cumulative operating are as of our million today suddenly mentioned, XXXX. X lease restructuring costs impairment between Also, spaces due improved X.X operating during using. to asset X.X of million recorded in certain estimated future This had efficiencies previously and we office facilities we in million X.X inability have the tax our our play quarter to range restructuring fourth ceased These Mike activities substantially million. used savings optimization and were related work between to before global to completed our annual result plan expected costs incurred as million beginning the and of largely of XX.X strategy right restructuring exceeded part

cash million Moving flow. statement free sheet, in to flow QX we in XX and cash balance the generated

We continued our making to innovation operations, investments and necessary development. X capitalized cloud in to software in CAPEX support and infrastructure XX million million amounting

innovation combined to integration when full to and expectation and total for development, new the and due costs in of XX our market XX property XX for million solutions CAPEX and investments bring to of million we land which the capitalized software For in our for to year, the above equipment year capitalized heightened $XX invested YourCause. largely million slightly million

And year. to was or XX% free a was XXXX. XXX margin of flow year million, decrease the million cash free cash XX for XX% flow compared when full our full Our

range I with repeat and on of from Free workplace accelerated in the acquisitions investments making of results tax impacts we're within impact as just cash into investments were our our XXXX, XXXX well mentioned, business. YourCause. the associated which didn't strategy, flow guidance and million, included The refund heightened expected restructuring capitalized cash $X the as

in During and debt. we to XXX shareholders in net million ended quarter, cash out with million the paid X dividends

calls EBITDA QX of X.X debt the strategy a times. X.X stood we at of at capital for less end times and than to Our ratio

Now let's turn to XXXX.

be non-GAAP of We non-GAAP to operating flow cash share this that in recurring growth earnings year revenue are of our in organic XX.X% revenue services declines other will of organic XXX million of one anticipating $X.XX, to XXXX revenue. we XXX XX.X%, note the diluted free a to to million, of to also time above and recurring last $X.XX X.X%. another material guiding could we and XXX one growth million revenue margin From services and other time per revenue of non-GAAP be million. slightly to decline I revenue perspective, and XXX double-digit are expect

position we long-term and in profitability accelerated infrastructure We by make to a cash a to continue necessary costs invest migrating success. public anticipate will as enhance the to the leading underway to for cloud providers. continued incur gross and flow our this perspective, cloud shift. scalability From our business better we growth on service multi-year to pressure effort We're margins

also support pace of continue model the We to expect business. future market to a cloud in investment go and innovation growth our to the of heightened

XXXX is to million over to XX be which is Our XX capital an expenditures million, XXXX. estimate for expected increase combined

our we've off, restructuring currently While to to related to minimal the we're anticipating year-over-year expecting point existing maintenance phase our our optimization [ph] incur colo to We're associated capitalized necessary onetime software XXXX cloud of as and development to tax completed leveled shift has strategy. costs in continued largely largely the datacenters. CAPEX with costs increase upgrades before four

after consistent cash dollars expecting XX% taxes a of taxes remain XXXX minimum will rate increase cash and in few XXXX. in rate modest XXXX, We are in estimate a million our with non-GAAP paying we tax of

be will making with increases I business, from flow and taxes CAPEX within and capital. just working in investments the impacted cash free into we're mentioned cash Our the changes

strategy of hasn't Our changed. deployment capital

dividend, to for our We a in and opportunities. operating continue pay invest paying initiatives, provide continue will expansion capacity growth down debt and to

the balanced approach executing continue capital deployment strategy execute capital our plan shareholders, our scalability. your we balance to will like In to sheet, maintaining up disciplined growth lines a questions. improved I'd strategic to strong growth to investments summary, and to with our for on maintain against we and return continued that, create drive open while and profitability, With to

[Operator Instructions].

will We with with from your proceed of the Please first our question. now take line Roderick Stifel. Tom question

morning. Good my questions. taking for Hi. Thanks

a So, pitch you've talking base doing a here, to first off a within Mike, to function higher and vertical more I little adoption what fashion? to around long a deal what just and this leads more rates, higher the in can Ed product of higher a capacity, what's just about, build you wanted large about set sizes, with to congrats the bit the bit doing since in presence out company that's getting it's sales little wanted the some for market to drive to your that's drive Ed the some newer and particular, early and Thank in just ground you. know that vertical been about on successes more talk I fantastic been more a sales there. to go to hear features existing nice be details you more you've a question of Ed I time. bit on the do some little able installed

much larger what's really you the back on focused a I'm that higher generation in my months from a prepared the years, a great in a now our much pleased has wallet a of as marketing on team starting business spend, lots footprint for up last really lot universities in in signing Ed if got applies sales done of management we're and Ed, fundraising part go places lots We've of IT in lot global business. done universities that well. moved continuing focus higher expansion exclusively really We're and getting Yeah, foundation What happening several sale Ed. to announced higher We've the part We've and the is in mentioned that The more and we've marketing in Ed with platform. and in covering with education to I higher remarks showing a up and around broader smaller which also of build thanks. a good recruiting institutions Sure, portfolio XX great. in we're a of job lead job references. standpoint.

the know, of business most great. aware is the now that very the is into runs the You side industry of of which move school, our

that expansion is years really the So about that and for that quite market in I'm last vertical excited going happened business, what's well. couple us of

it for we gross that low side we to services low the Outstanding. this some have through you, the forthright and here, you watermark about model whether you then be Thanks. to bit, XX.X% encourage still on Tony, you'd for colo quick follow-up construction year construction be a a us margins margins? how this little operating margin about that is gross of XX% have margins quarter, of on some year, this margin gross is and been would trajectory. that up from then the should operating costs, and a margin saw the marching you relative us in the watermark, in thinking XX% the of hitting start just Take gross to guys the down duplicative fourth pretty costs, bit idea would little

do specifically as the we but Yes we Tom, margin, continued the we margin to to say side. can't prepared gross to see I on expect I'd Thanks. that gross in talked since comments speak that, didn't about guide pressure

and I of I that's than the subscriptions gross more significantly payments think, a not we pressure we've a saw not growing about as at that's business. downward break you seen margins think because talked apart times business, we've our on payments if is from the rest that recent faster historically in that rate

software pressure. not creating downward in cap amortization. The that's increase is longer so And real no pressure the from

and existing generation on as the out higher significant the those we've then also to the with you the and been and As know, dollars only about also building into products platform of faith products we've but then talked in amount the the next investment cloud not Mike, community. just a sky converting entrance innovation, spending Ed

So service an on bit we've now line. duplicative away to centers third margin datacenters which future. colo amortization up last move bit out putting investment gross innovation in quite up R&D pressure will so, year party provider quite perspective those clouds CAP of fairly colo from data then conversion on And cost our and about is software is catching in into as to spoken that quite cloud a margins, results gross a third again, foreseeable and migration bit That's this more of and a of timeline that continue from the the a long provider for all party datacenters. the or

that continue you'll beyond that a And migration. through expect that XXXX I would and as so we bit see

work of From still the some as drive marketing comments margin prepared business incremental side there'll that. on an we Mike sales be operating perspective the investment, in spoke his and to as to

to the I well seen from we've majority think R&D pressure from business considering margin. SG&A. been to and operating the margin continue made obviously side, of side ground the perspective. able of But leverage the which on We've investments we've that the pretty on the there the hold helps will gross good all come

Thank you.

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

gentlemen. Thanks,

recurring think organic confidence So a or to off the maybe clicking like on in giving what's that the on you It will that that accelerate guidance. the revenue start is I going ramp of that base wanted double segments you in acceleration assumes products the couple up XXXX? your just maybe and to looks guidance

major that first sales. for the in this Mike. really Hey, change Yeah, question. notably the Brian while the is company in business restructure it most the a as a haven't we we had is year Thanks organizational and in

we increased headcount of pretty essentially an a had now the January, we that ago last changes We sellers. compensation all even hundred So, around important had gave point made specialists sort and first few moved some is rate but we sellers that model year big assignments. at them dollar more sales. we direct and with year where a people direct had a We they're in wanted to, have sales product shared

And increased productivity. of is in as increase the so headcount you when because the year you slow know, more reassignment we and total reassign, significantly although the actual down you in last sales, heads sales

model sellers just last we bit all great in the all had team productivity to in got So year. off That's reoccurring the first correct direct of territory, and the a though sales year, took last Everybody's of We plans we week January. little a their wanted information entire operating even have in to hit year. their a not this Charleston. kick here

So, especially sales. lack any in organizational better leads productivity to change much role, of typically kind of in

those how that the so Solutions only YourCause good seen organizations selling and Mike. would about addressable in XX,XXX many XX,XXX as have understood. Thanks, or follow-up, any guys. XXX,XXX be base? Blackbaud synergies for of customer you talk Well, just on donation Thanks, so into customers, maybe a And believe XXX,XXX social you you've organizations received can this about Blackbaud I year. platform

one good organizations, grants over a last year. the a to and that Yeah, Yeah. are YourCause XXX,XXX wide a U.S. four platform Also, social that donations in billion platform in access have Over The located reach. outside sure. has folks

those not So the We're high year starting the focus integrating in last definitely so by some of is on cross-sell and back was us duplicate opportunity some XXXX, was a executing to there for teams, XXX,XXX opportunity sales but plans their of lot. a it's in, office, are Frankly, adjustable grow but there are many that. about the going really work sort on acquisitions Those settled to not us. getting forward.

Thank you.

with Baird. line question. comes Rob Oliver of Our your from next question proceed Please with

the for into institutions ways expand you I whether gentlemen. with We're for one color just provide was Mike, big had partnership and within a or market partnership you thanks morning, now wondering a they of follow-up at go and I to Microsoft taking color couple where more Good have higher contributing, years a Great, working? larger could quick know Microsoft my Mike for is I in Tony. guys your if presence now, be you how Ed, question. then is the some some on as it love, that which footprints around

our the do go awarded year and education, by with Last business theirs of sort with the gate is they the organization come is we've and Partner along basically And Azure. sort to award moved our some be big the a moved started have with over architecture an signed then in pretty years collaborated in which connected to because then on And coming ago cool it units our using Azure, nicely. ago with of platform. partnership it a over in started it's for Yeah, migration Sure. and came engineering into our Blackbaud and Sky customer up things eventually the we faster now XXXX that education out engineering connecting We underway. Year to earlier into Microsoft we businesses was and while aligning COLOs and and as which of education the starting charity market. we've now And of them were care. more we theirs. business that from And non-profit then we're predominantly focused health so

deals introducing we are we previous and winning that press each see [indiscernible] into announced and are like And so, sharing are the relationships, teams is few others. We've we way success opportunities other's releases we pipeline, together. a

now together so well. we're in And as the market

deeper been to building virtually a that's And around and like verticals. the world, That things in with relationship a it's We're XXX. in including for several integrations points all years. I fit great our the partnership think is last just Azure doing platform also us. market Microsoft several there's Office of architecture, engineering, So everywhere go

deeper better a integration standpoint it's synergy a from customers. for and our do solution we as a So job natural

happening there lots it's going well. is and So

the color, I curious flow? spend, Mike. Good and cloud Great, weighing platform thanks appreciate is around bit you you might of any in on expected kind and or even in on would flow just cash delta guys. mentioned did of provide relative free to able kind and Tony, be you the delta had for that a it. number where taxes terms that of to is the terms cash guys you know be was free a of side color if that were it maybe around what CAPEX that little CAPEX cash Thanks, delta see guys there what spend guide

also a the we're perspective very in earnings, Rob. says in Thanks, to cash cash, growth is than will it dollar offset growth going of cash kind or digit what based those earnings increase single EBITDA the be free any that of taxes, estimates. despite have make more taxes cash And millions in will that all -- cash expect. and still increased that current business flow Yeah. strong the on from offset we we'll increase we in The investments CAPEX impact of

equipment to our in those colo up a we've to the is our impact So the having look majority running biggest side free flow got make is Rob, The and on current speed. and real to datacenters. on cash of the is, Rob rigs capital keep datacenters CAPEX of still equipment related lot really that at customers you we're when it, working changes. investments

so part of of transition that's unfortunately, duplicative And the cost. some this as

to equipment, hardware moved until upgrading we hardware, get cloud out and can to of have software party third We that get keep that business.

that's much investments off We've as to those in to we've So on that trying been got hold as equipment good working keep investments. incremental but possible, just order.

I centers see of the in that that of driving increase. a of until we'll moved. the years of little what's all that's think So get next bit kind we And couple unfortunately data

this to performed of chunks working biggest is we compared year better plan. capital, there The one the just

accrual bonus would the versus higher be at XXXX. year-over-year substantially of it our so what end And quite was

that'll And conversion made days. not be bit you have pay next every really in And to we're year-over-year some you cycle a year that really just year kind last out get over DPO practices, year those improvement continually quarter. there a and that repeat years. industry in the first down of period. best hit change cash Once compared that flow are then you couple accrual going a can in, out so is in cash And of DSO year, a good this something to We've higher on you DPO bonus that out. from to DSO and just of the

would driving due when with specific what's individual we some other timing payments be And issues vendors related then piece it. minor just would when really be that's of it. those and purchased So the of

cash the on capital flow entirety being So big the working free of put driver. the I would almost

you. Thank

ISI. question. comes line Evercore question your Materne with next Our with from Kirk of Please proceed

you to Two with solutions? how Levine productivity? reps based Guys, faith today, Kirk. to partner kind And for strategy in update it's the Peter along have from of are Could you applications conversations are in the and on give of an place that questions, these coming first market at full they Mike. one go us like their then kind

app based team Yeah, up acceptance And built sure. We've great. our team The are know, sales out quite got We've The been to has you rollouts quite new a has while built is Faith ramp the roll-out that entire as takes all of the customers productivity platform. new. sales But up rolled it signed the lot a a not some We've we've well. because and up. mobile really gone of have market a great. with bit. sizes. been

our this challenges newer with of the there were to broad we're portfolio, market. One

there's so that's year and efforts which work some attendance, to on trade started well. things And awareness show ago. brand conferences marketing around a and we going And underway

customers, products in and So, production, its of building. signing a up general lot

great doing good. can the team a CODA you So R&D really that is takes mention Revenue these also I build looks just a while pretty as new businesses. attainment job. our

our the You Sky it's coming engineering look built of platforms. in at out, number features

environment tens last allowed and Tens and is QX So year. it's really of in lot and features us features a production engineering high that's to great. which to QX velocity bring architecture of a

to we feature So out we're product going marketplace We passing more related couple to pretty weeks continue capabilities every the in as drive think of a good And the in be that. gets we're spot. fairly signed customers in rich built you platforms the with to like when last But live something we the this. that it's we're and references customers start really that all days up, the early are pleased have so the now six months. the

you Great, sense when can are kind we this insight. get margins, kind kind this will kind centers, I when of and give with completed a but these gross Thanks. we kind are. of more investments off? of sense thank end an I sense on kind migrating see when come us mean, just can Tony, of to know level get is of the colo that of the of Final see a you guided, out can to XX%, haven't where of you mean, infrastructure making, of you XX% for a I you question you're

Yeah, to percentage. really give it's difficult a

environments have We spun lot up a cloud. the of new in

And doing a to we're moves. prepare Colo we're quite so preparing and work of our bit datacenters then also in

we have have have the migrate. over around a appreciate can XX-XX years of you we world We lot to datacenters that as

be as to networks to we to from going it's began or said, we begin so will we a datacenters, migrate That lengthy And as pressure project. fairly infrastructure. cost down and full entire product a shut margin begin perspective, sets

for start near-term, we it that and a would least themselves. datacenters least over gross I of so term. should And then savings some in the we step And see will near sure margin seeing individual shut that see you at scarce of networks be kind longer down step will as at to expect pressure come continue we and the pockets equipment term, will But some the at for improvements line, approach time. the margin

Thank you.

your Davidson. Rishi question Jaluria next Our comes Please proceed question. from with D.A. with line of

on for Ed offering Rishi. offering and questions. It's are hear Hi, that your nice Thanks guys, to my well. faith doing higher this Hannah for based is taking

this You on successful guys Sky engineering platform. Blackbaud mentioned

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the higher that, in the based. products, faith and take now Mike. our Right this portfolio the for net Ed is I'll new of net the new is

net add something we to scratch. do lot Ed to I'd wholly like to we have core. in higher the don't short-term add just from with thing is based. work we there's either the That's a once new like including now can whole this we a extensions of platform new the portfolio, naturally that production did create in So are where faith-based a have or integrated engineering But because platform, faith to net and other organically plans across

work So there's much an to from integration standpoint. not do

our So the to platform environment run just an entire and standard more on that has integration. to standard a lot and engineering controls solutions market infrastructure teams faster productive really bring for with be provided

are using innovation has picked that of teams really velocity the this up platform. So the across all

path to about think all? of you, you rule guys that's helpful. something it Great, a one look maybe like, achieving then And does XX for the Tony. Thanks. What is at

Thanks, Hannah.

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job think front. we've done good that a on I

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Thank you.

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

Mike how that behind less about start XXXX we than that sort morning sales the [ph] for little you're sales BB Con of taking focused lot at as on What like XXXX? Tony, that starts mentioned full reps little that a a now get your should we Tony, look to you to and we good progression, quota you into to should think, half hear of really Yes, looking you XXXX. of walk Great were in reorganization think is and thanks us Can direct think and on about productivity. through I through my bit questions. of

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tracking way sales, other that we're The the increased is [ph] doing multi-touch the and includes remarks in investment in my lead of thing and ecosystem got and look and we prepared this that's mentioned which whole digital continue process. an through to the marketing gen at and important I footprint all our attribution we've

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you. Thank

proceed Schappel your comes line with of question. Our Please with from Mark next question Benchmark.

you of legacy customers thank taking my with would process starting just setting questions. your your to sun Tony, respect cloud an Hi, update within if you, where good here? us the are you wondering migration products I those on to morning, your with you products, for give migrating was and

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you. a your an follow business up, as business. thank to starting then see you yet? in And Tony, payments on Are that uptick Great,

we had a had good a we know, XXXX, You year in surprises. few

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payments the and all fairly and I fairly that's base to towards think things in as a shift That the overall front. big a are an now market said, of donation positive there online continue well kind that business did of we so it fairly industry be out first payments is a accelerated so it business rate grow quite few for grew on us and nice at when a years ago. doesn't launched finished and the for It us strong.

Thank Mr. comments. question-and-answer Gianoni you. final back to gentlemen, Thank ladies floor turn concludes for you, any our this I'll session. and the

a largely behind with on next for updating on I are for ultimately call. and Thanks, increased and the progress shareholders. Good us operator. company, have as and our pleased I your in The forward progress and XXXX customers, objectives to Thank would employees like you structural changes software ourselves you in saying, now Social our we're powering differentiate a close we've leading business further our on made earnings positive participation. well-positioned the cloud outlook XXXX. delivering Tony value by look the against everyone to to I'm

may teleconference, for this concludes the you This at you. you participation. your disconnect Thank time. Thank your lines