Workiva (WK) 6 Nov 192019 Q3 Earnings call transcript

Good afternoon, my name is Dtamara and I will be your conference operator today. At this time, I would like to welcome everyone to the Workiva Incorporated Third Quarter 2019 Earnings Conference Call. [Operator Instructions]

Thank you. I'll turn the call over to Adam Terese, Director of Investor Relations. ahead. go Please

followed Thank call Quarter everyone. Chief begin joining for the we is Marty us comments Stuart today Financial Good and line to Miller, Earnings you Officer. questions. Conference Accounting Third then Vanderploeg Officer, Executive XXXX our turn we'll Klindt, our Call. Workiva's Chief from Officer, the afternoon, will Chief for by over This Jill with on afternoon, Also

XXth. call which A Relations access be our will Information replay November in release to replay until press website this is listed is of section. Investor the available on under today's the available

As a broadcast being also conference reminder, call is live via webcast. today's

statements I Before XXXX. financial that to and to today's our regarding performance, and would including everyone unknown guidance forward-looking statements quarter forward-looking remind known year future like fiscal we and and full risks for events call, begin, subject during are fourth These making we'll be uncertainties.

for statements of update any expectations our and from the occur reflect on cautions undertake that to only XX-K obligation are current report Workiva events that refer no the not and our All these Form future forward-looking statement made statements. reflect quarterly forward-looking guarantees factors that any actual cause we today XX-Q statements performance. after report to Company's could results Form to on materially this Please call. annual to differ

CEO, refer financial begin press turn course to earnings Vanderploeg. also Also Reconciliations let non-GAAP that, in are call, certain non-GAAP will to call With over we'll certain measures included during the release. and to information our the me additional Marty of we today's of measures. -- GAAP today's

call, XXth for thanks XXXX And Workiva is company. as to quarterly our Adam. which the a quarter joining public release you, Thank everyone third financial conference

which quarter, third our operating revenue of and guidance exceeded proud are results. for We

four In reporting. integrated Wdata, and our discussed call, EMEA, vectors, we global last growth our risk statutory

to number the updates, platform. four it across connectivity with solutions and way increasing Wdata improved changing across integration, With and many of applications integrate is deals controls systems progress our data Wdata people vectors. this with including is and and pleased our our size automatic workflows, quarter their are because customers all the capabilities, of work. We risk new enables our

spoke of Missoula's how Conference pasted reports. our Financial User city of The to Reporting data he resulting supervisor and checked September hand XX,XXX at copied about then in lines up and the previously

from reducing Now time the uses their automatically saving city update reports systems errors. Wdata and to daily, their source

the region. for EMEA. we their time, for solutions continue and of filings EMEA Demand current our strong as prospects same mandate to in in XXXX. sales increasing ESIP is first At Europe's customers impending the is ESIP support meetings prepare growth in regulatory up they number bookings driving and ramp with Therefore, our

which growth bookings SOX, enterprise solid see to audit risk integrated continued also solutions, management. risk and We includes our from

In addition, Federal the EMEA Government. we are U.S. expanding our and integrated risk solutions into

are We by our results quarter reporting. statutory go-to-market in global very pleased this

jurisdictions. our continue platform streamline validate entity numerous for demand in reporting We to multi to

market. We are this aggressively pursuing underserved large

announced recently channels augment and their which service to our We adds with advisory solutions platform our continue of to delivery financial strategic a and We partners. sales for alliance transformation. with Deloitte portfolio

Partner user In Global named our we year. our of addition, the conference, at KPMG, September

of our we connect, federal our of work strengthen of moderate help to This agencies enables all Last which report customers. and XX% up their to received information authorization month, security types. authorization our benefiting recognizes control FedRAMP level platform to the us of further higher

assessment, standard highest enterprises of continuous In for software. addition, the consider many security FedRAMP cloud monitoring and authorization commercial

X,XXX our We spent and customer customers where three are conference thrilled September, our with leaders, with days teams. largest Amplify in user and than R&D ever industry more

and be a connected prospects, that reporting Workiva data As the transparency will throughout than confident and force more am I to I world. ever customers continue visit in with driving

me over that, With Miller, let to Stuart CFO. it our turn

Thank you.

Also, revenue in in in discussed, statutory of investing we've risk EMEA, markets bookings are and beating drive our to that reporting Marty QX global market. in so we accelerating been combined and each integrated Progress pipeline each has This of investment terms guidance been growth. progress Wdata, encouraging flexibility. our As to to these full convertible growth evaluating balance with opportunities is patient our recapitalized guidance for leading with and us be a in our thorough in raise XXXX revenue, cover the our note on significantly on later improving the sheet We guidance I'll year intend QX specifics financial successfully in investment. call. offering we

press in QX for the basis the of XXXX. that a and our results reconciliation and our to outperformed from on of of outlook of to GAAP We for stock-based third our interest Please total refer results revenue the is related non-GAAP expense guidance. We guidance generated about talk increase results our $XX.X quarter I'll financial and non-cash million, rest guidance convertible compensation and before third our release an XX.X% XXXX. to non-GAAP our notes. quarter. for Turning revenue a and quarter

out Breaking QX up Subscription support XXXX. revenue from $XX revenue million, was item. reporting by and XX.X% line

helps revenue for New same the in XXXX, XBRL growth XXXX. growth increase from XX.X% in solutions services services QX of last in strong conversions logos, of accounted and services nearly Professional new professional revenue quarter an QX. was all million the QX to drive solution-based licensing in $XX.X revenue year.

to return from services revenue to expect single-digit We QX. growth in professional

higher finished be from QX price Turning increase from of with sensitive. And companies, number customers to tend net Churn of XXXX. X,XXX a among new a increase XXXX. XXX to The customers was our smaller more supplemental XX QX metrics. gross net logos of QX, in which customers, QX was We strong.

XXX.X%. With to the compared was XXX.X% from Nearly retention came our to remained the compared support period and for our XX.X% for of subscription quarter quarter of quarter resilient, improved on, revenue rate delistings M&A last XXXX, Our rates third revenue bankruptcies. revenue for churn subscription revenue third support same half retention in and that and XXXX the our retention to XX.X% of the rate year.

XXXX. QX, In

subscription of from XX% with of number is over QX Our the XXX last at contracts contracts year. per up larger $XXX,XXX totaled The year XXXX encouraging. third progress customers in valued quarter

annual contract XXX up had For third XX% in results. customers at from $XXX,XXX quarter, the plus, QX we XXXX value

basis to gross profit ago. gross P&L, quarter a was was $XX.X year on out XX.X% in in QX, margin of Consolidated support to same of Breaking XX% gross XXXX. million compared a a latest XXXX. gross profit. points contraction $XX.X S&S versus the Subscription up in QX, gross down from was profit margin and Moving XX.X% equating the million XXX quarter QX XX.X% to revenue,

accounted decline. help customers the generation to next headcount server platform our upgrade to Additional costs and higher for

percentage the enhance development $XXX,XXX period R&D expense and a to QX from expense and compensation as equating to gross higher last Research XXX X% was this server and last margin was new markets. revenue in profit compared basis in gross to down million due $X.X in third due a additional services million year QX address up $XX.X expense. to services year XX.X% quarter investments talent Professional quarter the points to improved from XX.X% QX of year. last to same

$X.X QX G&A QX year marketing compensation Operating QX drive quarter guidance. compared better from points administrative expense a our XXXX totaled XXX reflecting and QX percentage last growth. XXX as XXXX. Workiva's expenses investment to in of contracted bookings of latest margin reduction loss XXX basis basis for to basis the million a in to million $X.X operating million Sales primarily XXXX. in was than $XX.X expenses. about was loss to an expenses down QX million improved the General of in increased $X.X operating to quarter points XX.X% compared to revenue due $XXX,XXX but points and XX.X%

our activities operating QX, multiyear $XXX deferred the implement equivalents $X.X provided cash statement. August. terms. XXXX, year XXXX, at with marketable our with same ago. from in million obligations of to million differ compared performance convertible billing an with At compared cash net and balance notes balance June as continue cash, securities XXXX, million XX, of of Turning and $XXX mainly in XX, totaled In to contracts cash increase a revenue totaled million, sheet driven $X.X we flow provided annual by quarter the September issuance cash Remaining from

to Turning guidance. our

For we to At million $XX.X revenue of in the a rate revenue growth we XXXX, to to range year. fourth midpoint, total QX to million. total last compared QX guiding quarter expect for of the are XX.X% from $XX.X

expect We QX. revenue in from growth professional return to to single-digit services

loss mentioned operating we non-GAAP investment reflecting million expect range earlier. from vectors, to to million We $X.X the growth $X.X in

revenue million. At full For is a the of XX%. are of this revenue million growth the year guidance XXXX, $XXX.X for range to midpoint updated for raising $XXX.X guidance, year we total to

We to expect non-GAAP operating million. $XX.X $XX.X from million to range loss

the flow for full year believe will to [$XX cash continue low be millions] We operating in XXXX

XXXX. to Turning

XXXX expect we basis, preliminary exceed a total on $XXX to in million. revenue So

year-end licensing majority substantial of the a preliminary XXXX. will reflects priced based subscription Our by on solution be that guidance our revenue model

the expect of rate subscription revenue. growth revenue and growth professional of outpace support services the We rate continue to to

We next expect in in non-GAAP detailed consistent We on our guidance our relative planned operating growth on loss to for to call. investments outlook on margin to our plan XXXX offer our with XXXX vectors. XXXX decline our

take And begin we're session. the think, I And Q&A we're your now ready questions. to operator, to ready

Robinson. is Please response Instructions] SunTrust Tillman from Your [Operator of go you. Thank ahead. Terry first

gentlemen. me Can Hey, you okay? hear

Hi, Terry.

Yes.

us the I That the haven't little some million. of sort I hear that total could commentary don't the versus guidance kind breaking guess part bit directional $XXX on the you about to job quarter. on but nice calculation, subscription I a on of give year. Stuart. kind next revenue Solid done question, first was of for the the actually,

that the growth Just trying of total of to gauge revenue? vitality kind versus

Terry. Thanks,

is predict. be and Services revenue We hard that. is it's pretty pretty have -- to can us for done historically -- not or volatile

Some within of same the it delivered and quarter. sold

it guidance of over and we're XX% be long-term as you of time, expecting on services. subscription know, revenue, XX% the sort Our mix to

expect rate growth So growth to of we exceed And some to in but an that services. It's much annual professional the revenue to idea also heading too on thinking. talking were Street what early rate say, we're basis. that in about wanted get we the growth we subscription of very be XXXX direction still we course, did --

know maybe like question material I event-driven and Well, have for but have still implications understood. you understood, get I regulatory you of early catalyst an and about with It No, to 'XX follow-up potential Europe. the is going there seems mandate. questions it's it lots a

what around into of you. Marty, pattern shake to does we trying in out terms and it some even the terms [Ph] are So through or look just it's Thank mandate. the you to as perspective new one's XXXX order you I from going of around health like how love in move XXXX and seeing in buying would get

are that But discuss to And it and wanting engaging Well seen us with about influx of an also together it's prospects seen that's and larger we've you're thing, customers customers putting actually very definitely we plans have early. us, right buying. already promising. one right, really you're been with terms in of

So we're still very optimistic on high-end. the

X,XXX I visibility XXX customers. have ESOP think, versus good -- the the [Ph] we largest largest, maybe

low the to slower, very response. too And although don't they're they say, getting we're get end, hard going are but we just optimistic as it's great On quickly.

are and ESOP great come having around we've to people and breakfast getting to that had those. We lunches luck

we're optimistic. So quite

expectation, are since key Marty call. time have kind we most removed you maybe four you're got four given just of vectors kind in versus the surprising of the there, growth maybe [Ph] them terms on of earnings What and of four last Thank do the of you're months in Yes, but a the kind of three you and all the the of the proud roll excited you positive side. about where them, you. I'm Of terms from all on are sure just together here.

really different me customers We've quite two it's they're Well, say, want seen albeit it's the these and I But fairly encouraging up kudos starting from so customers. substantial it. to a it's and growth all much number, are interesting, been last quarter. pick We off but doing really know love get guys to with really in you the Wdata, pipe great. bookings small and

great that. we're a quarter. really statutory The reporting, optimistic global had So about very

And so did EMEA.

building right thing now is -- real largest showed terms as it's it's of risk and and off solid then growth in they a integrated that base for the well. So about growth the

I So really but pick pretty I can't strongly child about feel my of them. all favorite four

you. thank well All right,

Your of Oliver Please next ahead. response from Baird. go is Rob

think assume I helping guess, of point first that. for and solution-based drive this you quarter again or guess some kind we Marty new that the platform on sales maybe come that of trying the larger to just XXX,XXX that know kind net about, think of It's question. customers greater on customers will XXX,XXX afternoon, we kind licensing. about the larger being over for but Great, than in think anniversary a quarter than deals, the either levels customers thanks the thanks. and reach talked greater initially, perhaps Stuart, greater XXX,XXX -- I in this should people XXX where expectation licensing fourth start quarter, XXX,XXX for Do to or how Matt than I Lemenager of and the one solution-based those as customer that in be continue accelerate the to Rob you've off, those Europe, on taking about I growth

is growth Well, as that by the only itself not a ADS and customers. on customers we add also increases Global a but on. to I on much something it larger really in deal vectors it, the, our really our when is statutory our existing ADS It expect look of at new another Wdata slow lot well. augments down reporting, of that typically one customers don't of

really on want feeling keeping add that we're growing side. customer the in numbers terms anything? good of to Stuart, large So those about you

Yes.

just little mean Wdata I I'd it sales risk stat largely Marty So existing sales, about to bit reporting add-on both, sales to largely saying, a integrated customers. is little logos, is say, the add-on if four leans toward EMEA new to think existing is vectors, you about customers. bit global is largely about maybe what about add-on of a is And echo

-- are customers. So or are on existing of heavily to sales add-on entirely either three focused vectors the of sort addition to

contract in size. So that's the larger deals, about confident the growth why, larger we're

And fourth is doing We're we're a than the people lot I one of lunches -- and the and that. Okay, -- guess breakfasts into -- and think and I of other kind I we're what Street got kind income question of a one ramping bit what I hiring on breakfasts operating goes guidance quarter all lot the and but lunches, was what of had just for curious in the sales the know it's Europe that's it. has. lower a the

for the So the that fourth of kind just -- into goes what quarter?

Sure.

a investing stat a it I risk we've growth of not marketing the lot reflect earlier. -- in well mentioned in in also, as in it's Europe in my hired Wdata. in So new It's and sales, it different, -- as the that integrated COO and talk we're is in does global acceleration in but and and

earlier. that mentioned So I it really reflects the acceleration comments in my

Okay, thanks, Stuart.

Thank you, Matt.

Morgan your Please response Stanley. ahead. from is Stan, your you, is next Zlotsky go Please of Thank line Stan ahead. go open.

I Hey guys, little sort pick year. sort at bit a it it in did all. under-investment related a growth from to up I XX% this had the up earlier in was increase the growth on I hiring head was think, in maybe at of which half, count is, in it much bit the this QX, is was a single-digit mean, of so of How an first Hamza a up Fodderwala again on in all a noticed for was investment. catch-up I Stan just Zlotsky. the question of

were question. was we count that's analysis for faster really doing -- growth in effect that's people a we the -- seeing just made what starts to year. Thanks growth to you earlier digit this on trigger the vectors, hire know, the flat in, XXXX head were build, Hamza. that head when to from that the -- relatively third It quarter. our conference takes on flat-to-single pulled and We we while the it so count as you're the on We to call. that comments So, in new

out I pretty investment. when I clear it well. invest just we going as flat under don't helm I to, the 'XX, kept wanted think to we to are really head I -- that we was as want mean, figure comment and the in. Marty. is I took I This view that on we in count what to

a growth unless And were doing that want tested high of so was we those due these period that thoughtful. time jump on all were confidence, and vectors. didn't diligence the were very we things, different we stuff so We really into of level we had that -- that to

all primary feel and we focus. said now, start very confident growth now, we've as always invest to so of them to our we're going and And in four is

Got it.

from me. it Thank that's Okay, you.

Thanks, Hamza.

response go from Please Stifel. next of ahead. Your is Roderick Tom

Thanks afternoon. good my taking for Hi, questions.

to Stuart, this I'll Maybe Marty. in. free one throw So first at chime feel you.

had like is approach You've that a the expected. earlier licensing, benefits than year sort now, of the looks you've up good wrapping full think that. It of seen, solution-based I testing from darn traction that pretty

So you'll the in price-sensitive lift or year. bit base Marty, saw in the this that benefit level mentioned to you for price terms some get that. talk at customers. just you churn little a little through the the you end by lower Can average in of about the customer bit success of of end a

will to perhaps So is, of was over newer at markets just pricing execution part how to get last perhaps, the acceleration much solution-based little attribute we that as through then several byproduct growth and should better things and that a the opposed as of third quarters, nature. we and general in the that that look just question

Well anythings to chime to most Stuart's. questions it I will him. of will add. turn those in I want on that were I

So Stuart. go ahead,

Yes.

So, they estimate specific hard of matter the to on SBL as were than of it try last we've we to of of I be us if It's first, points. mentioned Tom, sort couple benefit it to sort more mentioned would customers their basis But a that. have the daily SBL. beyond But a on I think of spent, about misleading as hundred to spent a talking call, as the one that how people not determining level affected be have would call. last the because take time think of last which, what would isolate of, the they I'll it's sales time

of there the So longer-term benefit are couple of SBL benefits.

it experienced of prospects Number seeing that sales. forward. number use case one. then on they of for one get users new within specific and better become two, the increases -- going day with it with -- it use calling on who price That's we're for at the platform that of customers our their Wdesk logos every One our might and the number each is for increases

on that's So to know all I have to -- Marty, if that. that's the you if comment want anything don't all to good. else been

issue, real in a I'll churn of of the we've has a address Yes, the for result pleasant of experienced SBL. lack terms The churn, just surprise us quick. really been churn actually as

the of Some customers one didn't value they're the because the or two, add quite only on rate. the actually modeled market end because of small organizations. We lower churn maybe higher they see would

So we've of having through already. pleased and gotten that with very those been a lot

that of much SBL we're think the rate. that on seeing I churn effect is, pretty

Good, good. great. That's Very helpful.

you, Okay. I'll this RPO just And is this then follow to one my an Stuart, up, directly question. aim

of it's numbers, growth. in XXs your look it one So, was and RPO the total than I'm on little is RPO there you're at When growing even I that low-to-mid favorites, total the sure. a accelerating, faster

if really little talk in picked look we bit interesting current modeling a at than more of good for. and bit I through that's XXs. the dynamic So you Can in are we and has that is than long-term up saw the deferreds also slower growing high that, the a

what to function about to platform love a or willing selling who you're that perhaps to would more but how selling selling Thanks. hear to make some commitments you're So them, strikes seeing you're longer-term to that's that. to of I the it customers just perhaps or me you're

Yes.

And multi-year remaining script there. obligations from year billing we annual because but have mainly have mentioned the contracts, typically is So implementing I difference been that three some this differ terms. revenue think the contracts, performance in deferred I main

It's that So that main X XX for -- there. are would the contracts XD, [Ph] explain GRC absolutely in space. standard difference the example

so contracts. we're for seeing more just, multi-year And for we're demand customers

Okay, excellent.

So still to basis. on XXX. recognized all on daily ratably clear, be a that's Those just GRC driven. ASC even And are

revenue ASC pull no that. So associated with XXX Right. forward

correct. is That

Excellent.

jump me. from back guys, queue. I'll Okay, in you job. that's nice Think it

Please ahead. you, Grondahl Mike from is go Thank Securities. your response Northland next from

kind Yes, profile? rank guys. margin your Could good vectors, of of their in, you terms four evening, in growth

No, I a platform. view, would mean. -- to mean subscription since we're Mike, all on subscribing the say, same our basis, I I they're

to costs, at of so customer the our success subscription close pretty customers at least all price them. And minus the same is for -- margin price

new costs Now on that services matures side, there you'll have see services and the PS when line, fairly is product a software we market, that margin. definitely higher on but client see will -- you we're as a so, the gross side, consistent pure not will in the

that's Got can I kind the converter, more leaned was I acquisition you just that of I pipeline. the understand. the And Have comment but then And okay, since you into margin, thinking guess, at operating all, what's current it. on thinking? just

certainly have at a we we to opportunities. been No activity acquisitions will which acquisitions strategy. our commercial that and so, acquisitions strategy, will in plan to investment our years and certainly fund the patient Well for we space existing at according raised objective in we have we imminent. be thanks. and Yea, looking and plan have part looking clear money three is to increased a that one to And execute accelerate -- our and

you. Thank okay. it, Got

Thanks, Mike.

you, next Thank James. from from Please Peterson ahead. Brian response Raymond go your is

wanted at about were Brian. ongoing that here around call. to of a taking ask I service for guys. and bit new Hi more for your little Kevin partners will starting product. lot my strategy. provide are a There Amplify Thanks implementations on partner the

been is your partner ecosystem contributing and mix to So with Europe, you maybe of some marketing of I how think point how sales guess, investments and outside do and the deals that in about that of as related going leverage recent some potential a partners forward? the of

definitely first really the resulted They the partners. U.S. lot actually believe definitely that from in we're they have implementing together. nice relationships some lot product, make interest for of can realized driven in actually demand a of getting at take the incoming the a and is has so I'll money -- that. has really The and put they us product activity is The what that seeing crack -- there Marty. is this Well, the

two of put terms the a on from definitely we're about thing In seeing in a I'm starting going to to is and while to a year tick speed acceleration number. that up not bookings number deliver to those But where -- partners -- know I'll year to see to small that get to we're sell partners but they is bookings, partners that types or a you up. things. tell all take investment three and again they off how it, it they of can coming

So I'm It's very the part pleased and actual very bringing leads promising. a rate with there next the us has the year going And very big been I we rate rate to pleased we're frankly. deals. adding of be -- with overall, partners, growth been partners are that think has have

obviously as well. as well Europe, to not scale We're there. there In we're partners established starting

those it's a at going partners definitely countries the behind, different the and going I a their connect already we're important have all offices part way. think with of more be role North to under behind cultural it's and So in so little as same playing that's a but America. well. bit we're and where of local some big aspects just strategy the to there in -- But Europe Partners,

sales team. weeks, more. been it's of Maybe some authorization. the one the it. only know Government vertical of what's I Can from your Got few a getting feedback early you near-term That's been FedRAMP the about talk helpful. moderate implications but guess I

that you small of opening guys. potentially doors for terms in Just

lot we're the -- to off We've that Government had growth the also over reporting see our but solutions. Yes, number, audit and it's Federal I starting And going ERM few been a pick in to is of some GRC, we're shouldn't small sales to There the but some there. GRC controls interest a think next -- the out already the years. has up. again of financial going nice and say I

third in these the to XXXX were all we nicely few I So maybe the second our of want also XXXX, had that, security in to we When assess ever to first oftentimes companies first back when I sophisticated are in years. solutions. SaaS much grow app their launched over utilized. customers more commercial next or of the say we started or getting ability going product, that's SaaS think

we has has And really sophistication customers our so were -- gone learning followed up the there a just early an commercial steep curve. and of pioneer

And get where customers the ongoing lot to things have just of our an confidence. so to our investment. there we It's to have continually is a security invest into point

And a so big was with customers that. customer part security a big authorized we every FedRAMP reviews security forward. when of questions. have It's lot and we're We our prospects of FedRAMP tell the a step covers discuss that we that with commercial or

monitoring. and that of know a say internal just implies and continuous You [Ph] of that in they it they in have what monitoring, comforts because big percentage the controls questions terms

on for go into things time So grow will our and be it's We have I us to big Government, nice it another conservatively into we're have Federal to growth, the these be think will start the sell going really when the Maybe at FedRAMP times a Federal but Government. a the can we to a think gauge for deal tend just growth is across little all of right. us. customers vector and we a step that nice ready to and the, that we moderate now we solutions good it

So FedRAMP moderate.

As Marty Federal XX% reach the original here Government broadens types, uses. mentioned the information to our talk in his that of

significant a for was it us. So expansion

guys. Understood. Thanks,

Thank you.

you. Thank

We Please Stifel. of have Roderick a ahead. Tom response from go the of line

feed bears. falls right. This category -- into me. falls don't All the the you of, of the rid yes, get this into can't Gentlemen,

strikes quarter topline of thinking XX the OpEx. ballpark for numbers, probably appreciate non-GAAP I fourth expense. just the and about maybe -- look sort [Ph], be the me XX, and operating a and the above Stuart, bit what little It for through in at the -- as that XXXX So I that of it we'll means running somewhere sort of

there year gathering, or here to you would that. sort any full to give probably our know we the rate you year? benefits probably think Are -- encourage XXXX, to run of OpEx build have love pullback look to would forward consider thoughts thinking on OpEx on a number going as profitability, that otherwise pull that sort in into Any how for modeling Without push to as I'm into on you want one-time or marketing into point run models your model keep XQ here didn't other about opposed starting XQ. would of done rate But off a for for nice as we in us kind a that QX. next of that we kind of building would words,

guidance thought I For next for on. you're we gave 'XX, about year talking XXXX, specific which

Yes, no.

it after how QX? play about forward thinking Just

Yes.

So relative what on to planned decline more said that. I early specific we call. much guidance give right, just margin vectors next consistent But us more and I XXXX to to recap, on you're be our we our growth it's that for too to our in loss with non-GAAP operating specific said XXXX in investments that expect Tom, than

Thank [indiscernible]. enough. good Okay, you.

you. Thank

closing no are at further queue the any you responses in Do have remarks. this There time.

thank very much. you Well,

Thank you concludes for today's joining us today. this call. conference

may You disconnect. now