UserTesting (USER) 5 May 222022 Q1 Earnings call transcript

Good afternoon, everyone and welcome to the UserTesting First Quarter 2022 Earnings Conference Call for opening remarks and introductions. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I will now turn the call over to Erica Mannion at Sapphire Investor Relations. you. Thank ahead. go Please

March first of quarter good will Chief me Pexton, first Executive then will brief XXXX. Officer. and are the Chief from and XXXX. the by company's Andy financial Andy for review a with MacMillan, the XX, Officer for full second of the quarter results Jon begin business afternoon. ended quarter you the followed results today With UserTesting review Financial the outlook Thank for and year Jon

We open this expectations. that current differ then risks statements the will to Please call management's uncertainties note call that for that could and forward-looking results from questions. cause actual will include materially involve

affect contained website, our risk as on results, to and discussion the our website, the section refer release. in of actual the our as today's in For and a other could of please factors filings risks Investor press Relations and SEC's other discussed well material available SEC our important on factors risks important that the factors

should the accordance this this of U.S. with our be net in prepared net also be be be our in for, to in evaluates on GAAP. quarterly measures loss property accordance on in our non-GAAP issued financial These GAAP. report Relations understanding set can press material March not as from, provide webcast non-GAAP of regarding loss Information section evaluating the in copyright XXXX. to forth XX-Q to are measures discussion this website. the release afternoon found all contained and GAAP the considered We've Investor non-GAAP was how per is management of Please in investors will quarter with and company's or All for we measures rights Form measures XX, reserved. UserTesting note U.S. prepared with that measures reconciliation not non-GAAP with they superior isolation measures the and certain the included discussion includes performance. as company's filed non-GAAP including non-GAAP operating of believe share, information which the that ended substitutes sole means Additional in

I the Now, to Andy. turn to call over would like

us We thanks begin afternoon. Subscription this and with XX% a in with categorized with for highlights in customers, quarter everyone XXX,XXX reached prior a a the revenue financial year. Erica great XX% call XXX to some here We accounted total than for $XX quarter, from year-over-year. XX% from increase increase then customers, of joining record representing the had the and year-over-year. you, at quarter on reported momentum few the up million, for more those Thank first I'll business spending updates of which over revenue of XX% million, UserTesting. growing quarter discuss as revenue the we $XX an ARR, large our

Our XXXX rate QX was up total, net all year we ago. on consistent have customer from one customers XX% In across year platform, the XXX%, one approximately now dollar ago. segments retention from

global Industry over investment Survey. for found the in report XX% area based executives. the experience Ninth from The quarter feedback highlights publication UserTesting CX top of business Some a professionals of customer is included is XXXX the on Annual that and

business role nearly was based agree the XX% We from CEOs customer ROI success. key customer Study, the trends. CEOs of also to Customer financial published The of Empathy study global plays study, revealed to According empathy the fuels which understand XXX empathy on three overall performance. feedback in

customer to empathy. paid be must attention that agree CEOs First,

our see research on greater empathy day outcomes. business impact reflects deep what every products And better a and insights. with Second, customers. is interaction direct experiences customer to third, gain customer designing understanding. the is way overall we Customer takes best having This

three includes excited we're updates, release, which new important Turning into product recent some our features. about market recent

or is allows management different for business. teams This user the leveraging workspaces usage groups, across platform for of organization departments, for better First of management lines for capacity workspaces.

Second such ensure is most. time keywords can machine product insight customization. industry Customers terminology, as their now using to faster terms or to names insight with train that learning our models matter specific

is Third and managing that patients and and their to is directly a looking consumer more their compliant. health is Within network This customers. this customers believe every move broader conversation perspectives becoming This platform view know they're narrative this and an are UserTesting with We sharing customer the testing an confidently. process, where companies the with increasingly thoughts important, of single that user from information the and they honest that all through process. are of and participants experience screen that and the to to that feedback trusted or insights on to sharing is now from gather their enables feedback their strength contributor opt-in including HIPAA our recorded, aligns know own a being protected privacy UserTesting channel organization. securely gathered plays with opt-in feedback

Insight Customer previously New fuel, and Waste and FullStory, Airways usage in very excited We're customers Management. ServiceNow, known Canada Parkland have included as quarter Post, expanding Corporation, Cars these first Volvo to British transactions growth our wins Platform. adopting HP, of the and Human WM

increased In make recent who international continue the international the will of Canada. of revenue. We period, QX year compared quarter the lead presence, to Solomon, operations in hire and including our revenue prior XX% XX% first total represented with growing Jeff investments in

of to With insights and the with As the of updating over to in financial results I'll turn future. that, more to and the we're we customers, detail. to see human industry in more it ways all to Jon look excited about our empathy discuss build come. for you looking more quarters We forward

today. and you good of consecutive metrics. the quarter than saw was financial greater performance year-over-year over we XX% the Andy our to announce revenue first Thank I'm It everyone. with afternoon XXXX for excited quarter of consistent many and results fifth growth

of the prior revenue financial key in Subscription record million, period. Revenue the highlights. XX% first an a to the was of XX%. $XX with begin compared quarter year million increased Let's increase $XX

first As to we was by a mentioned that our in remediation the subscription liability. call, sales favorable adjustment related quarter the increased accounting earnings million revenue on potential of last there $X.X tax an

of benefit, been that would even growth. it total accounting revenue growth That revenue remediation rate plus accounting and fifth adjustment again still sales have XX%. quarter efforts our have subscription XX% rate the growth adjustment of the been would tax year-over-year was behind consecutive the and us Excluding our with XX% that puts majority

rate quarter Calculated lightest is an quarter of our of strongest. increase seasonally our net consistent the quarter XXX% first quarter with first year-over-year. QX in year Historically, seasonally were billings, the first with $XX dollar Our billings XXXX. million, retention the of for was the being XX%

I'll about earnings Operating talk A $XX.X still in million be flow, would in was quarter, that XX% which excluding to The the unless of in I press gross $X.X $X.X otherwise specified. period. compares increased loss first and to XX%, benefit minus referring the measures been margin margins operating favorably year the XX% subscription million, accounting cash free ago prior period. million of As margin operating the minus minus expenses, non-GAAP the compares release. revenue quarter in which reconciliation to have year and included GAAP was in today's to measures operating loss, is non-GAAP the

COVID of and are flow of lower However, our quarter than some as cash. lower travel the quarters, margin items a quarter. in for second expenses our There Free of million benefited earnings and minus cash XX%. with of flow in remainder quarter from few QX in the a the expected cash marketing mentioned free note with on $XXX spend. the rescheduled free run was flow were cash year. $XX.X as well restricted which we impacting We last ended minus the QX million were for events, rate third the call, as

an we First, premium annually annual million, policy the going which nearly public [ph] forward. will of our recurring company payment of $X paid DNO insurance be

Gross we of third, was quarter tax in mostly remediation are this balance margin on both and improvement was roughly up And from period. prior cash in again, And were behind XXX liabilities, to which XXX historical points us still XX XX%, quarter, prior Second, to quarter days consistent in with and the approximately those gross first point. was XX% $X.X XXX higher sheet. compared to year efforts periods. our margin which than basis quarter, over accrued ago million day subscription was outstanding the settle sales the but sales the days, at the already an paid first the

the Turning to XX% and sales to QX year revenue was in prior XX% period. in expenses, operating compared of marketing

growth the in hiring over the over to continue to quarters We the quarters few continue invest our sales and and have leadership last to awareness and market. and in plan next increased marketing drive position two

period. which first compared quarter, of see was in to of some G&A XX% revenue in leverage prior revenue continue year the quarter of XX% in to expense prior expense revenue the R&D in first the year period. the was in compared XX% XX% to We

Now million growth $XXX million, of of on XX%. guidance to guidance, a $XXX we million range of full by raising rate to the year revenue XXXX for the a our to are new representing new $X.X XX%

rate quarter, to to second million a XX%. of the For expect we $XX.X XX% $XX.X million or revenue growth of

year, which of the points basis revenue full a guidance. margins is are XX% XX%, to by improving non-GAAP we to driven For range expected XXX minus by our the new minus increased operating

of to we in minus quarter minus range second the For margins expect XX%. operating non-GAAP the XX%

to customer other year events. this events, guidance return travel planned increase expense the increased and percentage as of including to of of and addresses in a expense we hiring, programs, marketing pre-COVID planned kickoff, recent third the expect a impact and club, and have in-person We and conference second our operating We marketing in sales margin full believe revenue sales levels the increase. sales quarters as spend full

net For XXX the between and weighted $X.XX, $X.XX full the shares million expect outstanding. year we per minus assuming non-GAAP minus share average loss

session agreements One of the For questions. and we'll point assuming the for X. loss restrictions will of expect share the of end particularly weighted pleased are begin on we call under May Q&A second shares with market quarter. customer operating per underwriters lockup that Operator, opportunity about that, before you reminder growth, opening excited negative with prompt to ahead the of we margins prior with We million UserTesting the large we the the revenues, average the please are net outstanding. XXX.X questions? non-GAAP for we immediately Overall, With record strong of is the a and lockup IPO, terms open will the last us. customers quarter, $X.XX, achieved improved our all trading

Instructions] [Operator The Thank from line please go you. Thank first Truist. of with you, the Terry Tillman comes ahead. question

next great you of hometown my the with are the to or call haven't on yet, come Atlanta, share Yes, afternoon. book. my so taking it's good to now the to hey, But ask nice. of Andy, earnings congrats my knowledge here done about on a Thanks so and for in book questions. to that's questions employer on I'm going have and to I Jon, see And kind the quarter. on my top

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investments So Are these public public? early two are bit after Jon, there you a of market and And of examples return see thank company green going some early a market the indicators? of, had early followup from of as the we're good new a early seeing go And presence that some of where or share about hey, could some you've of a you. indicators then reported, to some of increased kind that? on any little now awareness maybe you got I kind quarters and also, for shoots you what

that be Terry. think more credibility good public need, I as awareness. folks we is, say, on company scale awareness new the company, than I it's of is category, capability I and mean, public But awareness, great and a being us of event things one being Yeah, the kind solution think we to to the the helps question, people obviously, a helped having I the app deploying IPO that board an a so of trigger new think a the purely has company a it of I pull obviously drive drive on have and confidence. would of that awareness getting public

that kind talked and a benefit we've research on think capacity, in can definitely and still of get we're And We're but early business, driving driving in we're a organization about, of insight, awareness. around say an a really it's that more cases. awareness I this like a and very been think even I fast, actionable, before, marketing to possible. where more product early I is days use human our just in this the still you illuminating team team as real

Got it, okay.

you asked customer things. new when narrative, see, real also one real you of show of things obvious People we experience on Once you Terry sort it customer. does, a you cases, someone or use our sort sorry, about these innovation as call and that would person, in provide that where retrospect. user, I'm to be like user platform innovative do is say see what it's a feedback what you of to we it is a see give UserTesting continue folks I that see

ago templates. testing some and of We technologies. out kinds templates We We getting press for testing the cases. that about important, so we talking feedback we Metaverse on increasingly talked messages three friendly release, put around use I about illuminating as there, eco it's a did really continue see think about products had about eco in to becomes weeks those new people and all us

Okay, just a follow then got And up maybe question. it.

was XXX%. the as I quoted think revenue On net retention it

was seeing the and could growth, I transpire it the think How do or XXXX, rest think customer you're how you, a what around of congrats. know it on terms about that's to of and going expansion of kind and of how consistent sales XQ. Thank year guess in the I down new the from about we move a based for year? bit. then think I rest with little point we do affect XQ that

is XXX with The Terry. year consistent Yes, a ago.

a XXX customers as million three and year and quarter $X a a we blended service quarters. I of low it's and a and good number. We good as five so XXX did think over last the We year. at an at a had quarter $XX,XXX XXX

sense have that's going kind our been right of that. going XXX we've you But is kind that so the and lot into five again, that a think and of gives last there's trend marks a where So I a now. you quarters enough keeping of line of forward we're three where

Alright, thanks lot. a

The next Murthy go ahead. comes JPMorgan. you. Mark Please with question Thank from

and for Murphy. congrats quarter. Mark for the guys, [indiscernible] Hey is this on question Thanks taking the

First had fears and look environment of of are a in the is thing macro versus I customers agency and on guys since talking more in that's that geopolitically your point. any markets you causing the you and any particularly in you any to kind of guys And of are volatility effects harder, that a you. efficient all of becoming Europe? if vein, that, seeing kind is, of options the at then guys Thank a effective solution tougher kind globally a and of little much lot bit cost are more other similar

Hey question. RD the thanks for

have not in Europe Those You are either large selling know, in -- a Ukraine globally locations. specific in right exposure. a now, those we those but that lot spot markets in Generally, see of the and in for very that well. consistent in us a demand particular, areas we employees region or are don't continue have Russia, to in we direct as don't hot

have where does mean We whatever are customers. that out users, uncertainty is to their one to a is there and figure the of uncertainty reason, what our when solution their customers for that trying things

variety I folks don't to today that. wide for macro a see think continuing I good trend think we see help serve of We're demand I -- And a to that that figure strong execution. see out. don't we to reason. And so use continuing cases we're changing

just hires I still on kind of channels little the sales the That's what vein, guys made and another stages, recently help can it. of a there? of know partners you helpful, importantly, kind drive you. are thank that you guys and to and but bit kind know they're then a Got I made And early in seeing guys speak you

numbers about an in us talked that partnerships to which those more a quantitative see telling on we process would for One highlights understand not sort into. maybe that's measurement. to But are a Yes, lean had some is can saw particular in We we customers even they out Quantum areas. we opportunity with feedback side QX partner dig channel. are quantitative that several talked as call that I area large the I we ContentSquare, historically Metric here with partner big We opportunity our we platform the joint with them IPO in deeper through them. different have to about and of our it's data of that get qualitative and what think want use when that

lean into as want fast Adobe. to way and of emerging Qualtrics, And would get I agencies we're to more continue themselves, with working with to of with a a agencies feedback that over interests more where that We performant real have going characteristics, of like this they of have folks see, in to are sort part partnerships closely a we And our continuing clients, unique say, but to kind which the market. we're on market in pretty some we into time one getting but to unique impact. provide it's think early service

we're positive to early, partnerships. but say develop in continuing I'd an and those invest So area signs,

you, congrats quarter. on and the Great, thank

you. Thank

Thanks.

next and you. Berg from The Please ahead. Co. Scott with question Thank comes Needham go

cases like to companies use key of was regards congrats what or month used Shoptalk Jon, kind brands looks key can and we while at quarter feature wanted a technologies does technology to of some the the But I Is platform? about there different the functionality it with were, kept a like. kind back the looking to we're already off the their the the as try up I use opportunity open thanks be should how of of was And this We the ecommerce with Metaverse. one it new Conference other ago Metaverse. word customers in attended using coming think and questions more that what an the about extension for we of taking mentioned, UserTesting market are of platform? for theme retailing start on or what word maybe you is my it a of Hi, Andy UserTesting use and to Terry's platform Andy, cases good and Metaverse tag how questions. think

the as compelling that's to that enables really from starts they're learning market the it current get in our we feedback Metaverse folks in being extension think today I an have in customers interested something solution if about.

like an the platform Our you thing heard many Metaverse, you R&D investments, the earlier have hardware. what where Metaverse video solution can is your do The that imagine to investments Metaverse. what doesn't operating it's require to them to in ways and sharing take as all a testing and -- we evolves convert main our a experience on We're see be sort speak constantly. that game customers in around making in those desktop anyone the some Jon the almost call would in We to shopping of a continue Metaverse, Metaverse, and mobile for organization it in in will also the the the of to playing someone organization. whatever on or in might to I are it can enables we that iterate investments highlight

us all it like gap because customers like think when it just Metaverse, this people are is that And shopping called Metaverse. the bridges about customer, the in Metaverse, the are in our people powerful they're that how and about UserTesting really going in Here's we the empathy these what meet be case. thing might many how talked they the organizations that's to really thinking of be looks or with what it I kinds my are themselves not time spending to in customers that

of shared organization. And so solution go distribute understanding users real can get their they current and using our for that around that kind quickly out and Metaverse, then feedback

the expansions, large from minus five And has ARR for platform, And least where think Got bounced kind your what forward around growth spend the above it how on XXXX in quarters plus one before more in obviously, then that. in or opportunity quarterly those that XXXk done of more you but of customers your helpful. historically? ticking material the at there were the over year a threshold, XXXk or they followup is last XXXk it, land we those come right customer a that's XX perspective, over step-up additions from should each going about areas? that versus might kind to the Does to have and are of

when way They to Other Yes, and organization to opportunities are They find becomes the most bit are awareness to a say see time levels, below gets people And are other earlier cases. expand that credibility like, see where out of it, as threshold. is that we there. drive see is do above XXXk word new, as and I companies feedback. Wow! this customers that there think aware from from in information then in land use and and they and And opportunity folks think you kind I land time. our both. they're little answer see we'll those land. of for the more of higher a that get Terry, that is customers, we I largest into it, to doing growing that something This my more think point are about this threshold we larger into land well, But

to play. would I it's that just to is think So over we're remind mark, like XXXk and a an done. XXXk, expansion two punch once mostly not then one, like if it's we're We not continue folks also we're grow. to just And I

large customers, as show them to above once demarcation we that's just we So but of grow sort well. XXXk, that drew a continue line they're to

six-figure moment, we there's expands some you than frankly, add can as there's deals, they opportunities Andy on that six-figure said, deals sorry, expand big -- expand or Scott And but that every once that which also aha I'll just occur. quarter. both happening are sides, know, land are Andy, more we're have there And that six-figure have

the quarter. Great. have. Congrats I on again all That's strong

Thanks, Scott.

Thanks, Scott.

you. William Blair. line go next Thank question The [ph] Roberts Please from comes with Jake of the ahead.

for question. Hey, guys, taking thanks my

that or Just for level where XXX,XXX new cohort, of kind can use value engagement, show outside you of have origins and research the up you you land like starting are expanding and U.S. of those to just marketing to still from Are on that an when understand get the kind perspective, of really business cases development? plus to product platform CX and really those scale, usage now? within the departments smaller individual follow so the just trying units to in you landing expand model right

Yes, do pretty mix sometimes a and seat are But eco there brand are messaging, like Hi, both. getting say we if than sort friendly reaching in being The who mind about collar have see sort audiences. doing to It's ourselves of that we launched footprint C-level Jake. going in would products. great can blue cases doing question. frontline key on executives top That's hand, and pride of audiences, teams. do thinking by think their and work and I executives. new And just going session out in great about past of doing and top we again get showing mind more one with seat are more to they're And able quarter visibility about a We of for to pretty the substantial sort more internally. really we're more in I templates, for seat talked how that on of certain stories value. we go of with growth and heard testing companies of unit also some lot and doing the that. inclusive the things that diverse use we

that getting say, teams tactical that's mix. it's with would a thing product, the run even much a visibility and and doing might organization, frontline a sometimes so in they're real designer, usage are maybe individual really gamut really using it's higher our it's the but important, I sometimes So the or project

up a then And question. just follow thanks. Great,

XX, to the run with partners, flex some you've help hundreds of they of And quantitative terms think with in You anything curious of mentioned rolled tests quantitative customers partnerships seen but have platform's adoption take more I'm moving XX, you drive actually out those where the that instead since X, space of cadence? platform of study approach forward? you a start if that your model, analytics kind functionality typical type that is of could the there

great it's a Jake, question.

think quickly investment customers clear, do was product originally the decide larger run opening just sample pricing have how rolled interactive pricing the that you banking mostly model line right now ability about over up and to time sizes enable team. about ever about will, you machine We up at. right to our flows But to you, to customer really those our product. capabilities match that. out with But think to sample thought be have does start the model the also isn't to the then in substantively where for things now we about more come having we your and is learning, path do that to product line heads our point customers going. on I you're we're does to not have us clear that to you If more where of question, much like the want and want sample and in our work use do We It's are, we've that make product do core sure I'd way some works, yet demand with say do and that, but the see something in where are to with help sizes, larger strategy. sizes, the in analyze packaged them. up it narratives We product experience makes sense be that our how really that as for we'll a for the customers we work a and if buying

good. sounds questions and for taking great quarter. on the thanks Great, again my congrats Well,

Jake. Thanks

Raymond Please The with question the you. James. go next from Peterson of Thank ahead. Brian comes line

and the Hi, question for quarters. the congrats gentlemen, taking on thanks

you So HIPAA compliance. Andy, want with to just start I on the

also You verticals to evolves know, And out the maybe you I'd guys. curious, you from guess, perspective, to product? or opportunity, you obviously, different that's a do segment I'm What to think just as How do think contributory relates different think key a hurdle do them I like certain it you And go healthcare get it caters network particularly, a need people do for that of be way? the about curious. the types and that? you vertical?

I well stated. exactly that's Yes, think

that healthcare certification a I HIPAA helps is opportunity after vertical for think us the big and us the go opportunity.

One we of an and of with opt-in contributors, product product lot qualified And work obviously things. needs is we anonymized have have these our healthcare whom a many an you about just contributor. of network talk where a is, entirely typically large

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think I opportunity great us. So for it's a

helps I more and reaching think you're with efficiently healthcare more see us to that related do opportunities, and into effectively us and confidence. and more the going certification out

we follow a that? stepping sales would drive of sales maybe you investments for that you incremental to marketing next few kind year over Is should XXXX? and And of or you something When up expect I mentioned hear. up more this could to return the on expect that in a know the that bookings quarters. Jon. Good think some

we've know I the delivered number. happy a with Yes, few But period it's a we've so magic to been payback different and output. far, calculate marketing into money ways lot pretty that. of and sales the engine, there's proportionally put

impact. an is coming we going that. sales to reconnecting together. start customers. our more, to don't back that I are again, think, looking important or away, immediately with get It's I that going know see going COVID customers and to together think their with We that extra team traveling have to getting forward and spend and it's

in -- of go So events the magic with know to I in-person right where marketplace. are an don't then to if they'll be but be have have short the are we also in it's potential, return And bit the user little it impact immediate to term. going might three months. But a these way number in an

thanks Jon. Understood,

from Thank the Baird. of Rob line with comes Please go you. next The ahead. question Oliver

afternoon, guys. Great. taking Thank Hi, questions. my for good you

I flushed had for out the I contributing? more obviously flex which of just people, a not you large was add I expand Scott great up time from First you, is, convert cases IPO, you're could the model And little customers other current momentum expansion if all side, know, actively adding, model, a were question wondering with be follow you to and I but that bit and on that's momentum color and then around and might here. if flex use on just guys you Jon. the quick customer know helping those you whether of seeing at know curious, the seats some the the guys nice how seeking

I appreciate the question. Yes,

be price customers on make know, more to designed flex not pricing You to in that and focused model is that been to a they sense it over is is a you and transparent customers. that the But our tend of time. clear amazing when buy way it we've increase really structure on the idea

seeing I performance strong model. think under so, pricing And we're that new the

was and it's accounts, numbers. the majority pricing of where to larger enabling model, that necessarily in sense now flex on quarter we're We're adoption usage revenue on point and way to in us majority new the over. of in kind model, which our was it a expand pricing a again, most not drive a especially in to really customers up see forcing flex the and the is revenue at idea. the convert think, the I makes model the of shows and But them, customers

the how and with we're working, result is So happy is the delivering. model I think really

workforce I tester around tester And any guess, for changes much. then just or as on their pricing or any Jon, side, Great, observations first homes changes Thanks then else around corollary it? appreciate the into guys to very people out and back thanks, just just leaving anything Andy in you you, with tester that and going engagement it. perceive the capacity I one either

tester the again capacity Rob, in of kind the that's no Similar has hey of network availability, so really business. contributor changes or strength plenty got Yes, and that, a for pricing there.

I our the above think average we in had quarter. a was gross probably that margin long-term

to So grow I some that volume. the into think seasonally, potential more have we

a looking probably think I target we're XX% is at. that longer-term, So

I came this So in we last XX% at quarter. think

little how think but we're and bit a it. be But mean. the some that's about probably there'll I flows, think above we ebbs So

okay, it. I Great, appreciate again thanks guys,

Thanks, Rob.

ahead. comes question next line go The you. Piper with Brent Thank the from Sandler. Please Bracelin of

questions. for for is guys, Hi, today. Rudolph this Brent my you on Thank taking Hannah

one, have are about propositions, And you a conjunction how you that? just relative very stickiness of in or using different percent platform do Qualtrics value I that to but a what you like something First like your Medallia? think to customers a understand

the to many too Thanks have don't hard customers feedback. we'd additional customer for Sure. mechanisms question, Hannah. would that pressed be say for I find getting

surveys is the think quantitative industry. kind in of I feedback that pretty common and

us So survey customers running certainly UserTesting. actually a in through again I using them the are will those of tools will use of a they would those most often vendors lot our and for frontload, tools, though, of putting example, concert And expect a survey, are with where itself included. mix by

should it after back feedback in this they sure get the they probably underneath blast to the ask that. qualitative and the make those people three and before question you questions way, results, then and our you question, platform wonder understand So a end, people out on on if going people XXXX four that get did they'll you're that dig and answer why sits

that's are good think partnerships us. for those I why typically

great uncertainty really a And did put those to confidence giving much see now out? given you numbers cushion bake it's just demand right Jon, helpful. then you strong of guidance, you into guess, what's Right, there. I in the the and out macro really how

we we think at first Yes, information a in as in of I pretty and get look further we have our the away that front had quarter. from big our we us, beat IPO,

but pencils. that sharpening revenue to quarter, another and our beat keep down trend intend the line side, we This on good coming

last to should kind seen QX expectation of numbers out the that are for put than tried responsible, two the beats we smaller you've So quarters. be but much

Okay, thank you.

you. the next of comes Schwartz ahead. Brian line The from Thank question with go Oppenheimer. Please

and on Hi, you're subbing everywhere? any Brian lot was or quarter seeing color this Any wondering and that a that is healthcare. for touched know specific in taking platform like I would on on are about guys of more? if adopt HIPAA Is my the seeing verticals Schwartz. from spoke you because more the were Friedman thank question. demand I vertical there's for be Congrats great. you there you Ari healthcare demand kind the from

Ari. the healthcare one I far demand HIPAA say say untapped play insofar in was card as is so would entry ways an Thanks, market. I many certification I think the to would an in the

that it quite do have don't demand. a bit major into us a executing I HIPAA but allows the wouldn't vertical think was been us. for I We customers, And So know that we that have going healthcare more. certification some say area I push start into to

to continue the of see based broad solution. adoption We

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next line ahead. Instructions] Yun [Operator go Kim of Markets. question The Loop comes with from Capital Please

a and Thank Congrats on solid Andy quarter Jon. you.

First, for it. thanks the book, Andy enjoyed reading

market the quality know, the a us new current rate the and higher seeing are going work costs around acquire contributor your you also, any labor back on people is the the So higher but something you and higher quarter to given of read. You in to obviously maybe also churn follow any margin make network, to all a at it are lot maintain kind verticalized, jewel, the of cost seeing that question network? of ask, network? physically, contributors? highlight? a gross to any of And the to otherwise, or thanks. And more then trend do good trend was are solution templates have wanted highlight you contributor some that starting particular your state do the obviously I tell I the crown you just which up to the of to want Obviously, you some want

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I Okay, QX to to especially size seasonality your as about and should understand billing QX and the think how regards QX in seasonality? quick Jon year's a last will great. seasonality a around And strongest, that obviously, Is billings, deal we then gets larger question weakest be QX and good being the But billings larger. proxy?

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seasonality probably long-term, see, confident think light I the that you so we're normal a that's right to And then little way but the than bit would we're go. more

Okay, much. great. Thank you so

Thanks.

question-and-answer Ladies closing and the to to like end reached would we gentlemen, for of McMillan turn back and I remarks. session call the Andy you. Thank have

the Haim. the excited and We book to time emceeing than empathy human got to read you, doing. think job. that you we're now and the you ever. a that the really for for nice folks appreciate those a with for questions. that's We the appreciate market it. maybe activities of helping understanding product call took took and Thank do I doing customers. we're everybody wrote, that we've a it's interest build the you. time more really you, that their an Thank we and Thank such through that in

your your appreciate time forward you in and the involvement to to business next we talking So and quarter. look

This concludes conference. today's you. Thank

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