Zuora (ZUO) 3 Dec 202021 Q3 Earnings call transcript

Good afternoon. And welcome to Zuora's Third Quarter Fiscal 2021 Earnings Conference Call.

Joining us today for today's call are Zuora's Founder and CEO, Tien Tzuo, and CFO, Todd McElhatton. At this time, all participants are in a listen-only mode. After the presentation, there will be a question-and-answer session. Instructions]. [Operator would Relations, the for I Carolyn over to Investor Bass, introductory like that, call turn to With remarks. Please go ahead.

Thank Zuora's third call. and welcome XXXX afternoon conference you. earnings quarter Good fiscal to

for McElhatton, Zuora's Joining today Chief and our Officer. is today's are provide purpose Tzuo, to third outlook Zuora's me as Founder review well Financial Chief as the our Tien Executive and Officer, of upcoming call quarter. The Todd quarter financial results,

statements, and Some respect today responses including of forward-looking and with our include guidance. discussion outlook expectations, our to will financial

materially as a factors. our So, reminder, actual a of results of could variety differ as a result

You can we most release in find earnings our information regarding recent filings in SEC. the today the and factors issued with those

and our GAAP are Finally, we'll be press referring earnings to today, to included measures reconciliations several in measures non-GAAP release. related financial

we As to non-GAAP outside charges the from and measures. course litigation benefits exclude our of business financial a ordinary reminder, began

of filings, with visit Tien. or Relations copy me Zuora, links please at replay our release, of our over it turn learn let about to And investor.zuora.com. a press For website a earnings more our today's that, Investor to to SEC call

fiscal And with quarter joining Zuora's for Thanks, earnings you very our I'm us on call today thank Carolyn. third everyone quarter for XXXX. pleased third results.

few later. is subscription impact Todd will this gross And that revenue, margin, Let's backing quarter. We and from total revenue, cash a financial after a highlights flow. of walk exceeded through benefit key out the operating key including discuss expectations across one-time metrics, our even free the income

strong plan. $XXX,XXX history. breakeven in showing progress a We the flow customers We the free alliances in of got largest company's in integration six a partner, of over deal value. strategy. Over in reached potential We added ahead deals closed QX, fact, a land customers go go-to-market we expand We contract strong to systems showing of go-lives continued In of quarter our including involved XX motion. cash and annual milestone XXX live. upsells, XX the with had over new one-third one our

our and our than customers Finally, of agility, workflow, platform and adoption objects a increased our are we custom quarter capabilities using which These we had that recent of strong over two-thirds in like products. last are results our of already quarters. now things our are just the making most previous using customers launched tool, More that progress we analytics show of quarter. good we outlined

big First, opportunity big customer how more talked changing our quarters, in their companies rethink we indeed, how customers that they and innovate believe as preferences about brands we force we've subscription models. seeing previous subscribers. with are to bigger market resonates embrace And into brands turn

seeing grow. Our We're yield sizes. enterprise pipeline bigger continues to

per historical new customer trend adds Now of as see market, quarter the pace trends, you we net also may higher. you'll overall be see customer lighter but than up move ACV per

mentioned I indeed, meet resonating larger a as our on of last our these the platform our Second, mile of companies. last And of from with vendors the in is part hardest other differentiates this. is a needed subscription The with our ability to critical is And alike. running prospects Zuora is needs our business our platform part It the customers call, and agility. automation marketplace. what enables delivering truly platform

we is us otherwise allowed we platform win not It why to Our key has won. a successful. been have have reason would that deals

our demand experienced technology this on system in and revenue us really And that capitalize a say in QX, often automation important offerings for to to their our the relied SIs partners are increased continue heard integrators from demand. and subscription deepen. Indeed, journey. customers, you've those Thirdly, partner on

one that to with say that marketplace, shift we people, a the meet of enterprise systems, to on works not of demands order us heard in needed depends previous selling, quarters accounts. and scale that to you've Finally, and the in consistent just to one way

a I'll included minutes. we continue in our changes go-to-market this ago, year a sales from which focus. discuss organization results refining to more motion our see few We implemented and value our selling

Let's these into four of each things. drill

seeing subscription brands are continue big to we models. First, the embrace

We move global partnership up enterprise companies. continue to find market and with

Elite During meetings [ph], in we retailers electronic The the including started quarter, US. brands like core with markets Fuji Catalogue high manufacturing, top companies the three tech, of one this big of our media, [ph], in Xerox, Café

medium big Siemens companies tech and brands Infrastructure. in Thomson in like Smart We and including Sonos, continue to across manufacturing, Bosch and MediaXX; Panasonic Reuters publishing execute Services, go-lives industries Automotive

to case with the here. seeking service brands Elite launch very touchpoints big retail helping a them subscribers. recurring steady, Café into help out as them that is goods to give a predictable continue will revenue. across We're dynamic seeing turn their customers of use We consumer, interesting well space. customer we're And source a entire base and packaged regular this play as consumer subscription the

of companies continue with of XXX a tech $XXX,XXX. Japan, the our our five or In addition Fuji number we clients five sources we're at market. with end customers hardware new quarter. to top business, total high group constitutes the manufacturers. at all printer reaching very working manufacturing the large helping over of our now of We're them the subscription launch of help grow over flexible This Xerox, to ACVs a competitive find And within continue the with now multifunction of third of We XX% growth. services

customers ultimately and So, for shift to significant these a subscription continue growth expansion businesses towards models. enterprise represent opportunity their brand big they as larger

part this by success enterprise a Platform, customer particularly believe platform Let Its deals suite now our me of color developer within that on launched is the key are that in offering. Zuora Central being to shift year. due is these tools differentiator, more our We in some big to a of large is we provide earlier competitive which of used large base. This fields. features now two-thirds our closing the we've had progress the

important? of for your How the Think or experience. whether today. great key life driven health, laptop, by or of the delivering learning more. is food, you access entertainment it platform phone from own is that why winning your it's a Well, economy much of or subscription part services is a So subscription

recognizing changing are from these adapt customer, not know Delivering great touchpoint they and of touchpoint renewals, expectations. a experience expectations to easy. credit a chargebacks Every like That's every and have activation, is actions. payments, charging provisioning meet operations plethora Our internal like service requires even automation subscriber or facing coordination across is the operations suspensions, companies operations to upgrades, usage, like so or Customer critical. why shipping, cards, revenue. financial

deliver great You experience subscriber a automation. can't without

with largest another added XX quarter. one auto manufacturers. X For example, the top we We this work of

millions on Now powered all imagine the of cars road, services. by connected

car tools services, their finding platform customers music auto workflow enable parking of delivering subscribing number that customers. Our today or a they're listening to orchestrate to value capabilities, to successfully from our add-on thereby the to spots, enhancing connected

by at the automating We integrations agility. platforms, in you lose while scale our this way old is And so However, hard-coding deliver legacy important. agility. your why maintaining automation on platform is

their and tools company are quarter, streaming services, fact, video buying factor to of companies result. with in platform us In into that in It tools quickly tangible own efficiently top customers. to These platform In needs sticky those launch expand allow the this and as a files repair trust our one because our short, this and its the its manage to value them real our this customer more allow makes US last benefits platform gives a will integrate their is as solve using helps [ph]. Zuora three business. much needed decision mile and enhance agility logistical it retailers cited companies it and key programs, warranty electronic

now our Let review integration system our me progress with partners.

to at our SIs. among to our relationship alliances Deloitte, and bear These this of know, established Capgemini, Zuora partnerships we onset you realigned with efforts are the with others. EY our PwC, fruit. As has year, Accenture, strong deepen team beginning

our SI for a In fact, QX, agreement transformation large a embedded digital initiatives. formal has including with solution Zuora company enterprise their we in stack technology signing services into who relationships expanded

in importantly, number as sourcing dramatically their activity this agreement and the we actively by ACV deals of SI We that influencing nearly of deal Japan PBC from a partners. number and joint sourced manufacturers, Zuora. and over our as-a-service seeing consultants largest Most France. now some certified new Sis even of partners well that of an signed closed we of partner ACV customers world's doubled increased Our to deals as partner Catalogue, year. were through we're market QX, a in that sourced quarter-over-quarter year-over-year with to include large XXX% In our The the solution increase retailer several bring automobile Consulting

and believe initiatives, for quality ahead. our the we the an subscriptions we the in And, on pleased fact, SI but quarter it we XX SI and gross one-third well we are are shift to business improve. makes go-lives In of of margins we overall towards easier expect global our early current based partner. over to this services, pipeline continued our away progress with in momentum of had SI involved Indeed, from we're to still continue positioned that the our as ecosystem course, see

they update are working provide changes me on let Finally, short how answer well. The an are working. is go-to-market our new

plus, subscription industry-leading we tools. believe has management past the decade Zuora Over sophisticated the that most built

we With market how these in a changes we opened arsenal, go-to-market. products required our which opportunity, up large in

drive the serve steady the evidenced off past levels methodology, to selling the with our largest we space also We wins focused leading Specifically, individual on improvement to that in of complement of relationships starting higher number addressable of to the needed by our we are their number team and a have of customer where enterprise the own to skills moved implemented Everyone these is Group. selling full to hunter this all a win success. return customers. upsell of sales have shifted to a higher on team enterprise relationship, the All customer a one These that customer formed reps including quality pipeline. We selling opportunities. moved model growth farmer in customers, from rates model entire the emphasizes the our as newly to set from having upsells pay same a quarter, changes larger to throughout accounts contributed Subscribed We on of and enterprise the the go-to-market year. focus investments on over our customers, believe leads value Strategy market. we

team. the monitor sales distribution the team by we and of addition, In

We are market scale us in consistent go-to-market contribute that sales efforts. seeing additional organization, productivity increased these throughout initiatives confidence to will our more giving our

into delivering continued higher execution Lastly, strong we improvements as we are translate In we meaningful made value. for short, long-term poised and in believe retention have expect initiatives over ahead. time, Zuora's look to go-to-market net this dollar lifetime we we greater

call over detail. discuss financials Todd to turn the me to our more Todd? let Now, in

And Thanks, everyone the call thanks today. Tien. joining for

key financial with our our I'm leverage our operating across Our of in one flow third expectations metrics. particularly We quarter show additional cash performance posted exceeded model. quarter ability plan. to pleased free breakeven ahead

ahead, additional look company. efficient drive we build and we more margin improvements a As to plan

Let QX noted good me review our operating was larger traction in enterprise by the earlier. segment as Tien margins. highlighted

noted, customer with a over ended largest deals customers enterprises. historical a in in year-over-year continues success deals added ACV closed deal an total XX% larger This including Looking $XXX,XXX, as we of we our larger result the higher levels, and we quarter. added company's size the business. represent our XXX ACV, the $XXX,XXX And six than customers, In history. the to selling of at QX, as new We reflecting group customers in customer over XX% of Tien primarily growth. with in was of XX

our As of M&A. with churn result impacted the we QX level a as pandemic call, we quarter of a in and higher on were prior the discussed

for XX% QX quarter term, we at flat aim indeed In to to our to be the in improve metric. our quarter-over-quarter with we from As average. toughest the quarter shared this transpired. and Long churn. dollar churn historical we decrease qX, XX%. QX, net prior And you, was saw expected retention return we This

will weigh lapse metric a we lagging of as higher we experienced track this indicator. As metric we a trailing result, level over net reminder, a time. in And The as ahead in on this a looking this is XX-month churn basis. dollar on QX retention

they Process Turning is linearly through to transaction billion revenue of to as customers systems gain platform. our But quarterly over track as the understanding not is customers' transaction it volume quarter, much volume, which helpful of in business our our in the does represents our year-over-year growth. running processed volume how $XX efficiencies XX% scale.

Normalizing Next, for to include $XX.X revenue did came high results. of XX% decreased grew let that guidance. QX our not QX year-over-year to one-time is our year-over-year revenue the services end growing above $XX Professional revenue million. highest the Note resulted the to million still for revenue XX% mix financial guidance. with we which XX% of this, margin by million, integrator line review of improve years. our our work over in revenue. represented total $XX.X services to primarily included This QX total our $X.X in me QX, our million, toward subscription In shifting subscription revenue. revenue driven Subscription system non-recurring in partners. quarter. of a in higher three subscription our subscription level benefit QX the in our strategy This This is revenue to

margins, to make at continue Looking we our strides.

of a successful We revenue driving subscription have at higher revenue. as percent the been of mix total

points at basis gross XX%, channel, from improved. X%, As in our consistent were improvement gross was what blended we with subscription the the past gross margins margin over year. quarter closed prior QX of gross calls. Non-GAAP we margins drive margin to XXX XX%. with services the an Non-GAAP shared you more Non-GAAP professional on SI services

and by our loss to over the as breakeven well continue led with reflecting operating of $X.X office and our Non-GAAP SI more breakeven will benefit. year. services spend was of expectations. we improvement effective management with This operating in partners. was trusted on of We to improving a margins quarter, prior as a the one-time events driven coupled additional gross reduced run million as combination engage T&E, on ahead leverage a breakeven The drive basis spend non-GAAP cost the profit well

billings to subscriptions reflecting $XX.X a Calculated quarter. year-over-year, prior dramatic million, of improvement in flow. and from turn billings XX% cash was let's QX the Now, growth

to have our to after market to primarily managed We planned the the But modest for a wins. due improvement metric up outperform we prior enterprise quarter.

collections was driven $X.X one-time flow Moving breakeven, expectations, the to benefit million, during over CapEx lower net for of insurance costs, of Total our numbers. strong the $X QX cash million quarter activities quarter. flow ahead was cash recoveries. by and the

we expect by positive, QX, flow seasonality. to driven be usual cash For QX the

we leverage on last I business, cash quarter, that important flow and improve mentioned pleased As our good making I'm we're it's and progress in our metric. we believe create free efficiencies operating

with in million in cash, roughly the and to we quarter. $XXX.X ended the Turning with quarter cash line cash prior equivalents,

manage We continue the with and prudent have a spending be position respect business. maintained levels to to cash healthy to

stock million we was quarter-over-quarter QX. of of Overall, in using the reported that continued shares the solid fully share diluted as Our count We end see performance quarter enterprise growing. approximately signs XXX.X treasury the method. our pipeline is

continue disciplined be in very We investments. to our

larger SI customers experienced with have our We and working partners. success with

let's Now, financial to turn our outlook.

to model resilient, business shift to a uncertainty to see we business of the in changes our partners. subscription but SI Our We're economic continue making services to continues to the working more number market. revenue and be

continues when to versus revenue opportunity. we share loss of and revenue $X.XX to last our as our calculated loss of of about $XX long-term we make non-GAAP of For million; on $XX XXX the topic, persist, fiscal ever average economic optimistic X% operating subscription expect outstanding revenue QX, strides quarter. to The $XX team of to non-GAAP we approximately total are assuming face a per subscription while posted QX year-over-year a I to a XX% In we shares million; enthusiastic billings Zuora million continue million; long-term approximately net grow expect compare about weighted to we $X.X expect bookings uncertainty tough $X.XX, to to of near-term Zuora's guidance be million million; highest growth. $XX subscription $X.X million great year closing, to

to go-to-market quickly will innovate invest and roadmap, diligent changes look our are showing remaining in the traction, our we on respond the while which ahead environment. to product fiscal to agile macro to initiatives, need we continue As about and XXXX, in to

for I Tien Now, call your Operator? and will the open questions. up

your [Operator question Sachs. the Merwin Instructions]. from first comes of Chris And line Goldman from

I the wanted large about to deal in quarter. the ask

signed. Was Could there was platform was in that the the was about maybe product deal? included you largest customer billing core a well, other deal. just more the share mentioned it love more was to things? hear bit you I'd just in in, maybe industry what there a or Thanks. what it [indiscernible] think ever I about you as bit that

retailers customers to go for right something waiting But is the that. are the It store than But retail those relationship? it story realizing big a words, one think to with it's brands. lot billing was The the their the the it do They're into now. to deeper broader In website And more deal bet. have electronic deepen see on the customer for industry, or management subscribers. going customers. e-commerce is was not retailers. certainly, deep of with turn a on what's constant the fantastic And I going a these shift interactions to customers relationships. The think they big, into three other the to purchase to or more the subscription Obviously, as come to got top to got that of sufficient. in platform. strategic translate for was going brands system. the we product, stores retail They've from a their much They've how but

the as to opportunities create well. as we upsell have into the As continue success, will customers we we other customer to get implementation,

follow-up. Maybe just a

that for I Obviously, a analytics. both are rates think think also both two-thirds are quarter should more of retention using of and improving you mentioned products. about how how forward? and benefiting of you're analytics, of we think for a about platform going net attach bit Can charging those you and your strong talk those using customers remarks the of in very prepared platform I customers attach

product. customer part a to have is net We've strategy sticky You great got over drive our base. a we retention dollar up can time ability see our the and very of key

towards to that us larger skew You've are companies have seen going longevity.

the is so, for suite important. go us products broader sales ability of and after back a initial And to sell really the

what of not of the by adoption on they're about. priced based in different we're feeling lines. at different we're to we these ways. primarily out really It good functionality really, of we're have, yet our really but the break ready point And So, product revenue system. depends, are the products sort this The where

products well. more I to like that. be to it's little see before very market think we're everything as these do But I'd able that promising bit we new a to mature bring

This is more too. Todd. Maybe a little bit color

customers you're aware, to the platform. platform, three got the are as we've ability editions upgrade. the utilizing we'll And have As different in

We we have have Enterprise, we have Growth, Nine.

And a so, give get this have the they upgrade more functionality. reason will to customers and as of use use certainly of out the more platform

Next of from question the Stan comes Stanley. Zlotsky from line Morgan

is I Hi, for questions everyone. guys. Stan. This two have Calvin just Chu on you for

motion know, first are in of terms you out is, a continuing see go-to-market I partners and you, that going build where more practices trending I could ecosystem? next And to mentioned and what seeing both a little great. the as over you are The quarters? you few wanted how one it of around out to And comment just partner bit sounds know it. the you on

feel good. We really

at was SI that past implementation. you this went quarter, the our an there If in involved of look customers that one-third mentioned we've statistics, live

going is transformation digital to, around they're be they're as companies they what's based space, the playing technologies, really next doing turning at customer-centric phrased these available know They I And all are that actually these product when products, phase around them the with excited subscription just think with them. and vast that's the realizing revenue. Zuora. revenues. look revenue physical are Internet. we're that is And real the digital to not these are happening building right? recurring large, are to And that about revenue, Turning are What revenues. manufacturing, connected transformation. new or to into practices And they're practices right? Sis of streams but around launching you tend are these it building to digital SIs reality I this by you

really big, are the that. Sis a so, part big And of

a or it's transformation what key out practices, as initiatives. seeing is, their all your their of about your digital monetizing to so, digital customer because monetizing trying digital build grow that And transformation we're part relationship, we they're are

Our platform platform so. do platform the you is subscription the of gives only insights, really that to the [indiscernible] agility, automation It's economy. the the best

you levels. with second my question. the macro Could comment over On that where sales going to overall churn few and I the productivity the to do normal that has mentioned next you quarters, bit with on you a returned quarter? especially environment? And see know within COVID

look we've Calvin, levels the to that at we had. would stay historical

in So, where same been we've we range the feel we'll like be prior.

we're guess to and productivity, from sales that productivity that that would where I improvements is, And continue the thing other expect have say from seen we happened we've force. The be. to pleased I sales with the see a there we in really changes it

from And your of from question comes line next Jefferies. Thill Brent the

increased in quarter. to one is Luv the is seen partner is traction. that some see digital sort focus and office But good the offices are front the to to This having XXXX, themes of in focus transformation. Thill. was that enterprise It checks on like back It's on XXXX. Congrats the Brent of be we've the guys going in ask the our And for go-to-market you nice motion pipelines, on Sodha if a sounds will. question a you I wanted improvement.

so, you there pipelines? what of sort in we up are like pent-up as you next come seeing And year? next maybe demand look there the year, a see could the that back Is to

centric words Yeah. say, of been companies subscription world. the product a if it, it. office businesses, the at it's and office product. front might dated, And when you back The a sold accounted view that that businesses. front the the product, always look made sense would bit are lot the that of fulfilled, for were office And the of a office, shipping subscription right? back be it for And definition collected you division I very little they've

spinning span on for and subscriber the look those experiences to experiences account subscribers don't that. they customers. and front center have calling card at your start with build the it billing they have call your example, companies. span or office those the or office, the telecom to customer They like the the some win the is, sitting realizing salesperson, most And about those are talk that a life your home, and night your important. to they're shows up. food now, on if the service Sunday things what to in future picking – up are at going more just right credit having And For to without whether back right, a are companies it's then think great up phone, They own changing

work they you You in done. that up. and forward. are a in Those get shows going demand will Entertainment subscription to they the realize order so, subscription Companies customer-centric that, do management experiences platform. realize have that put to

broader seeing subscription we're of what COVID place have situation is we the the in business model. That's business the shelter to is efforts so, really go to say only And companies' future. accelerating customer-centric on build a sense model

in more weren't go traction some additional the on that. we like up I you're Excel Thank changes. you And or replacing sounds guess, needs? as you're the of competitors mainly it having It you. is maybe who go-to-market with legacy more one terms are seeing the one meeting systems competitors, market,

business. billing launches doing where spreadsheets. of lot A greenfield We opportunity. times time the It's a first we Excel replaced a subscription actually they're replaced launching we're homegrown it's systems,

the my things though, do as my okay of that us thing starts right? market, those enterprise we're backbone, In subscriptions within but lot one really, application. I backbone launch go of integrating of big software It's this we brand X%, up And the is – work subscription when running those we important. my XX% something enterprise becoming platform a then XX would is types So, say, to the is becoming XX%, on more it's mainstream, get – doing that this less. companies. integrate a with of you're new more existing And have in where days really the are XX%, the customers is and focus on to application I how existing up really important side, see going revenues, into really, to as or situations,

line question next Canaccord. of Joseph the your And from comes Vafi from

like quarter of little lot this if to Tien, you this bit quarter on a than results platform of the a heard here. maybe couple. a get the Nice product? see of see a we follow-up last it'd of about one, that. in wondering, little it terms secondly, a as good I'm kind platform last kind just of then seems number where customer a And quarter that usage? then was be breakout on bit And interesting after to metric more

secret platform mission think which do I system, gradual their times, last platform the companies, that's mile about software is of time. And customization, especially the lot we evolution something the a this large become critical a These all important. companies, lies. where the sauce a strategies of really

help capability. And capabilities, really continue And them we're launching got the talked so, things. continues tools And the those pretty ability about cooking will. to query to in recently, if some labs, that our amazing new there's right? other really, objects, is you needs do system companies custom for We've – advance. quarter, things custom are to evolve to platform customize every the important. And to meet we their Most exact

we was trying it it said so, of south And was remember XXX quarter last I'm to what adoption, today. in number but of terms we the said

every And the have they that ultimately companies all enables. our want do so, to specific our because is needs the expectation platform will really really one that platform of they use that

had kind bit of upsells one-timers at prepared And cadence rate look it that said a of an then, you QX is metric the business XX-month feel Tien's metric. or run on But the And there in on retention at it's get it any right of of remarks, think way retention, kind XXX to opinion trailing know I for now? view the or or in to basis quarter. I Todd, of maybe kind a on in dollar a net of just on the of kind a of a kind little least excluding net

QX. think think net feel at at importantly, more upsells trailing said, retention, But about look would dollar more said decreased metric, we I actually we out good look as case. the We turned you that toughest. turn, I And the actual thought our would that But the you retention, really look had. XX% we at be if when I we improved QX we importantly, the definitely be from to year-over-year.

I that not that right on perspective, churn move aim we're only forward the my from continue track the on think we'll to to color with but gives And the retention. the down, keep upsells. So,

bigger them of Is coming online Is bigger enterprises. actually with metric sneak maybe you they just then of are Thanks fair it say a larger most say that Or just do some for fair ACV in. $XXX,XXX to that smaller? initially it – And at to I'll sometimes deals? of and the that you're out more call signing start lot. – one that kind these

range. can is launch. We little a It And anything a what bit we of do part from small it's do. a

sure right, forward. already That's to of business, success $X got launch. foundation to, need look, power the power there's platform. got that of base for going find be demand I I And to a because your pleasantly billion idea got that so, pent-up growth by a the your and the subscription of and let's you'd your on Look, company customer All that want get you to says, Typically, you've I've I've let's my really something. of customers. be brand, into in how. And way that the to an the not surprised launch subscriptions put your together, the move going the

frankly, And really going of quite I so, think businesses power the path subscription see of and The pricing them cloud that's as bit with And result. to in range a to sizes capability. you're deal or more. power a size the usage that's start the company to to businesses, And the quite the over seven digits size [indiscernible] wants consumption to with, to ability worth have but be grow the the a time right? general,

we be more And from It time looks have Needham. Berg like from Scott that one will question. for

a good on Congrats quarter.

deals those is next quarters, the look maybe I you the talked any the about of you kind over those Platform would pipeline more bit, a the out signed in little Tien, Zuora different recently guess or if buy the transactions all, of pre-pandemic? of Central maybe than zooming First at that deals are that of how couple recovery customers composition and the business. you just

Tien Scott, something deals you standpoint with being certainly we had able little starting a flexibility launch I start, bit larger. as a with have we some that saw think quarter, been we if to earlier, know, traction nice said small seeing that we of this a or add and do start from a as more larger,

good subscription of you push healthier the quick plateau do see mix company. of the you'd your going Or to overall we've Is what mix that partners, with than revenue kind here? for were out level is XX/XX a Todd, XX/XX actually of the and progressing a certainly the historically follow-up, As quarter. mentioned But seen should that level what be the revenues forward? further? mix XX%

but I can it don't given we see that that, we've know guidance see lower. specific on certainly where I going

community. I think have it's healthy us certainly to really a SI for important

take it really to from quarter. saw them traction gives practices, the good we this an we're continue SI which the pipeline, to build us opportunity happy for work also, on. build to And build they to As

perspective, from the XX% So term certainly I longer see my going can it services. below

So, final management the remarks. over any now, for back call to turn I will

thank for session. with you to I in earnings us will want I much. close QX call. everybody And that, the Thank the joining very

today's conference call. Thank joining for you

lines. disconnect You may now your