E2open Parent (ETWO) 12 Oct 222023 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the E2Open Fiscal Second Quarter 2023 Earnings Call. At this time, all participants have been placed on a listen only mode, we will open the floor for your questions and comments after the presentation. And it's now my pleasure to turn the floor over to your host, Adam Rogers. The floor is yours.

Good afternoon, everyone. would second welcome call. quarter I the all time, fiscal EXOpen ‘XX this like you to to At earnings conference am of Head Adam here I EXOpen. at Investor Relations Rogers, our will session. Chief by recorded Chief Marje up we’ll Officer, and Financial call a the Today’s comments call our Executive Michael for Farlekas, include Officer, followed then open Armstrong, from live Q&A will of available on this call be replay A website. our the is replay available to in Relations press release, the is in Information which at eXopen.com today’s listed Investor section. access

to earnings Michael in that, from the Reconciliations certain release, non-GAAP results in our over EXOpen Before amendments to are our to measures. including not risks today’s included discussion future we a performance. future regarding everyone our market finally, with these are website. cautions our of call, revise future financial information today’s and can to These performance, statements applicable during press encourage reports, fiscal of most price remind today’s obligating may factors recent Also Relations events. we and Farlekas. XXXX. light statements refer statements other statements or by year our our that we’ll And including certain any ourselves forward-looking events will stock. guarantees for known results I’d these we non-GAAP unknown We forward-looking or second risks are be begin, not of like forward-looking full GAAP you CEO, to that to turning and review of and new that to affect or quarter And of and complete the Investor guidance measures for our will during be which or these call XX-Q are future begin information viewed and and financial our making downloaded we additional subject call, uncertainties.

to thank of join the and the all our earnings for XXXX. you for time second quarter taking call fiscal you, Thank Adam,

for like are business. another to I'd members we More X,XXX quarter. team people great First, than thank anything, our nearly a

software Our our team. begins with great

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innovation. Next, our I'd to commercial recent like highlight and technical

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our steps impact incremental releases then positive our facilitate chain and planet GHG our see protect rights human and chain You'll improve optimize for quarterly and in and aim waste planning, platform's people unify supply labor, make the reporting. to supply inventory, compliance connected to and reduce emissions,

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MarketScape. named of from Vendor including IDC continues industry analysts. in overall for chain as This supply Finally, five the being planning holistic party five Assessments the planning, MarketScape recognition supply to includes EXopen gain leader third chain worldwide a

quarter, Nucleus value and financial summary, producing also very strong busy also we been productive very second while as the and a for tower the results. operational control matrix. XXXX In in recognized future, our have building are We in leader

We it I'll our the excited of to to year. our QX we turn opportunities Marje multiple go focused about performance and strategy. about remain front over on rest in us, our the financial are growth and detail of now executing more into for

and Michael, you, Thank afternoon, good everyone.

of dedication and are pleased navigate outlined stability to our ensure term the second our to investments for solutions focus Michael long headwinds, quarter macroeconomic the a own. our revenues interest where inflation the in reported the team. continue for end to the mentioned, believe us we path Like and sales the opportunity headwinds, have with not in we contracts our of term at with we're our year, the shortly subscriber and was need strategic for I cycles a testament base as firmly As that temporary by companies, our further range, of of changed. robust supply distracted company. results. We continue part foreign We geopolitical market volatility, and rate on Regardless well the high to make tireless will year. guidance detail growth the subscription end the clients other significant investment marketplace at as considerations of higher including stand and long ahead these spend elongated last fiscal of exchange rates, of where their macroeconomic plan of chain

exiting of unlock strategy highly we focused balancing growth, remain to cost savings as near taking profitability. a spend investing also to headcount and the of term office select spaces. by in standing keen on eye continuing We're eliminating part a duplicative While on systems and future, keep growth EXopen's approach measured long profitability

to quarter Star. reviewing first We targeted cadences, drive of are our the internal teams. and also as highest defining focus North algorithm. flow across a cash That and longer processes taken efficiencies is our free to EXopen, team in have long term aligned to the additional full growth drive structures, term medium my operating we approach CFO In and internally improvements standardizing towards

for In of reduce focus allow looking addition and fundamentals identifying business. risk operational from to a true the on results efficiencies, ways for our and financial we're also to the noise that

revenue, of around not to only we cost, volatility providing any eliminate rupee exposure we portion the which hedged why We not hedge the that hedge. denominated future where Indian quarter natural euro pound, cost a this revenue both Indian do our a As item. currency, rupee chose an is example, have we this cost and to or have cost

up, eliminate business. organization opportunistically transparency drive or complexities leverage operating look further We over to sum order to in To all financial simplification, future will and hedge with the the focus for and time. the volatility scale on efficiency is pure across

to will flow and We continue fuel they line growth, but long continuously compounding ensure eye top carefully in invest term growth. decisions all evaluate we free are ROI towards to the business with also positive, to cash the will

then get will touch to briefly I details our the the acquisitions integrating on to an results, update progress begin by second to Now our recent and our fiscal quarter, guidance. of reviewing with our quarter finish

open to the call questions. Thereafter, Michael and I your will

foreign rate from XX.X% on decrease year of growth constant rate basis. organic revenue of from fluctuations. foreign growth fluctuations. XXXX, fiscal a organic on when $XXX,XXX X.X% $X.X in second revenue an press impact As the talk to a form a half of an a is exchange available a on basis X.X% of quarter GAAP adjusting increase services negative on or quick revenue million, and at basis eXopen.com. measures Professional form In pro in Relations million our of impact currency other ‘XX, a organic will our constant basis about when We a reported which reflecting adjusting Investor year reflecting website for X.X% on $XX.X over basis. results GAAP the a basis a XX.X% million, note, currency of first In revenue over were or show on the pro reconciliation a a release, our the of non the negative I section constant rate in for in fiscal exchange grew currency a $XXX.X growth year subscription year subscription we

focus part than subscription overall strategy as our subscription revenues durable high faster revenue. growing our to services revenues Our are of on margin

ecosystem integrators our these with growth expansion revenues order as the revenue shortly. to subscription planned to previous we our strategically shifting on partnerships call, As details provide in system our part channel investments acceleration. future our will of we new services more I on earnings aid mentioned of are

revenues However, negative to there of balance in are impacts normalize quarter we services that the were expect to also the addressing year. our some and temporary the

QX, was to constrained capacity were This than to was we turnover due available. broader did our us of as mostly not prior First, which industry quarters part in higher services as capture normal trends. much allow in wide revenue as

We and attrition have focused as issues to overall has bringing see historical training on through new hires expect backed to abate moved our these levels.

rate exchange Second, than and of second million I providing from X.X% would negative for also $XXX.X of note revenue both reflecting basis. constant $X.X that total issues We a hours are revenue impact currency a total pro the in are on balance In temporary currency adjusting year. expect revenues total longer a constant we for quarter reported when a in Again, a to of our to of logistics taking half X.X% grew the basis impact business form fiscal a growth first depressed on the trends the product revenue fiscal foreign the fluctuations. we million, on organic slightly XX.X% XXXX, as basis resulted addressing free or and the migrations a organic expected are improve project. complete

constant basis 'XX or basis currency basis. second pro a to on the in constant Our XX.X% margin period in of a on Gross was second a fiscal fiscal comparable increase currency increase compared form a gross for in million was profit the quarter on XX.X% or the a reflecting fiscal 'XX. $XXX.X X.X% XX.X% quarter, X.X%

impacted we by section the detail. is Our several specific not to posted Investor help gross ago eXopen.com. pulling year slides in walk of These Relations present that prepared to also through margin items of the were are couple Adam up period. supplemental was a slides the

The an first million had negative year FX, year represents which impact. the bar slide over on approximate $X

year margin, The this impact present the not shows system to $X strategic gross million ago period. bar which but was quarter, integrator in second

KPMG such As and to Michael disclosed mentioned, systems with in fiscal as 'XX. ecosystem This have is the previously go investing spend global of market capabilities million an training $XX integrators developing and building part Accenture. we investment been staff for

Third, we common to XXXX line. September and costs and items quarter of COVID quarter, as as period. currency to I also addition representing as logistics in million promotions. increase increases fiscal basis impacting we're infrastructure, quarter form an pro versus both to post not a approach. $X standard EXopen this market the specific that Adjusted in fiscal EXopen's to were QX basis, promotions year, items year present led FX are work These into EBITDA gross margin while from we're lastly, $X This over products discussed timing on of adjusting earlier approximate logistics year year over benefit second this our and legacy expenses will margin in a margin XX.X% to and approximate ago walk compared fiscal to XXXX 'XX on a TME we also integrated in-person EBITDA was overall through approximately prior constant for our year to the year fell a third year transition timing upgrading the on is impact an year in the environment. the million our To to the EBITDA the second move other second million was $XX.X difference million. $X basis. Adjusted of over returned EBITDA to have an go integrating merit our our drag their to with acquisition last purely negative a And represent merit June quarter the XXXX to a quarter year. the that XXXX and platform was year EBITDA specific last These as quarter, basis. XX.X% of XX.X% during you or our

exposures, to are hedges other cost euro natural pound, our and the currencies. additional the have along largest with which line in costs currency We top

to bar previously investment for The second quarter. in 'XX investment total ecosystem, marketing totaled on second disclosed which the internal year and million in $X fiscal the million system integrator refers spend, the slide, $XX support investment spend,

therefore of and million slide, within As margin of line. the prior balance sits the the The $X to million approximately $X in $X million spend we integrator the relates gross of Investment showed our and is the and than $X quarter, last just OpEx started impacts to million rate had the only approximate EBITDA. now less year. for reached has run spend ramp part totaling system

was before. Finally, year logistics an COGS year is EBITDA, of OpEx Adjusted for COGS inclusive of to negative flow a XXXX merit higher through as impact quarter flow increases for impact was OpEx promotions earlier. of described $X double cash line representing $X.XX. adjusted million impact synergies quarter XX.X% and free share second approximately EBITDA. from $XX.X no per nearly represent Adjusted and earnings offset both the items. negative explained And million, of as second unlevered represents again, the the over There which

driving acquisition. flow line and provide to discussed cash bottom As be on update important before, priorities wanted a also continue brief to us. recent I our free for profitability

than mentioned free platform a services higher for For to EXopen's due products hours common a Logistyx, integrated as a revenues seeing lower additional before, the upgrading infrastructure and to Logistyx costs result. work We're longer expected. with is as bit legacy taking expected transition some than

expect XX% fiscal XX% to fiscal million. be related rate of starting to of cost year However, projected run approximately to to rate realize materialize logistics the end. the OpEx $XX over synergies. recent savings We we still just remain savings and end by by the on on track combination run to with action our were XX% of Total XXXX synergies

related announced of phase $XX complete we X, acquisition. BluJay year, the our Last that turning September target combination BluJay be the execution synergy our our BluJay closed XXXX. was than total integration to more to projected of Now that to solutions on nearly with million. We're

size fiscal of integrate amount synergies huge company feel the to able nearly as months. stated Back end about of the We second a lift selling the have integration excited that and quarter. the the synergies. continued very We have of with cross opportunities being of are half our beyond cost end about we actioned and XX is over It XXX% is complete. good our surpassed in BluJay combination these

guidance. to on Now

ranges revenue for currency our maintaining are basis We initial XXXX. a fiscal constant guidance on

the since latest we last rate. especially provided our rate adjusted Given the exchange and to euro, moves additional British foreign have in pound guidance we guidance,

million includes We is the headwind compared of to time FX revenue $XXX last million earnings. GAAP negative from fiscal expect an Our to to year range over for $XXX we the approximately FX. million subscription which an impact million, negative now expected year now be XXXX in reported additional $XX $X

over revenue year organic currency expected Total be subscription year year including range to XX.X%. reported. FX. of approximately of is last in growth range be to a now impact additional $XXX an to million expected the in negative $XXX over expect is million fiscal headwind the time Our million, now from constant GAAP FX XXXX We million the $XX $X year revenue for XX.X% since to we

Our year total be XX.X%. revenue organic to to XX.X% constant year over expected is currency growth

natural range maintain to our reaffirming due control profit FX gross in line guidance headwind to continue announced million GAAP of year also earlier. We to the our to EBITDA $XX to incremental non described adjusted in focus and expect be the the hedges FX previously range our despite top cost We're EBITDA margin can to guidance our for We as million strategic investments. keen $XXX XX%. the XX% million of after $XXX our

$XXX X.X% on guidance. over year to XX.X% range of year quickly XXXX This year GAAP to third guidance subscription be to of a Now currency fiscal touch range revenue a $XXX basis. the million an over million, $X including the to on rate QX growth represents FX for in constant year million headwind. is expected quarter

to driven recognition and our change slightly near than fluctuate our revenue growth full of impacts subject do transactions. new are may indicative to be base As in from from churn several cases a variability. close volumes long deals based large but expect quarter small our rates there of sales these that larger not elongated quarter part growth third the third pipeline, term quarter, subscription on. generally year and last sales, to in we impacting pushed trajectory start growth pressure the macro lower mainly Annual the term for We we're which quarter, reminder, to cycles trend. quarterly second more and macro There of are discussed impacts line revenue, lag renewals some in also quarter. quarter, growth strong business. our subscription is that our quarter third top into to see rates we given the when recognize the in is one to subject timing We growth rates several driven already did a the These Europe, is of still quarter volume

As you to growth next Michael and strong joining cash updating excited North in to to focused ready we us be towards Q&A We forward investing we're for now discussed an positioned Star. eye year to Michael like the earlier, ahead free our your questions. the progress on term this flow remain platform, with Thank a I that, With we growth, incredibly well quarter. We capable finishing long look team would Operator, execute everyone today. the software opportunities have to significant see and an compounding take large us and and you begin strong results strategy. TAM, of our highly and session. strategy

the coming [Operator gentlemen, Our with first Bennett floor live. is from is Craig line question Hallum. and questions. is Chad Ladies you. Instructions] Thank Chad, opened for your

[Technical my questions. Difficulty] taking

what housekeeping So -- was the an goodwill to? you recorded in a XXX idea I Can quick of give I just for see you us impairment roughly related that $XX Marje. -- maybe think quarter. million question a

Thank absolutely. you so Craig, for Yes, question. much, the

given So market similar in had of This decline just companies that's take the moves. have impairment. was to other by But goodwill a required to and that, impairment is the price triggered stock audit GAAP impairment our stock an price. GAAP required conditions just that

it. Got

rates of about And in if a I then terms specific on spot elongated spring I something is container while. company of been is couple And cycles have think think appreciate I correct, container and macro points? rates Okay. length Michael, bookings in kind summer. for been on Is mean, whole And rates of I indicators OTR. and of it deals just data rates of the and coming the in mean, and ocean the off the for tough a there kind since macro just the the throughout compression a in commentary those road have the kind -- talked I deal significantly EMEA. of your ocean or while data that Marje over

some pointed quarter. to I in the deals tech sector last think in you EMEA

standpoint, of what to So from of specifically just kind you're guide reiterating half trying from still you're a kind second seeing company while constant reconcile specific a currency basis?

I’m us. Yes. was view conditions on for macroeconomic Thanks, Chad, it and the what question. -- I for means differentiating the of then our focusing Yes,

that's really I a built to continue business on we lots ways high-tech given to Europe quarter. view while. of of It in in some seeing can numbers. hit going model So to we We've but that a similar is, elongation. are to of more and win elongations for some we is existing expectation a of with last revenue our kind our customers, and the year. the different for and we environment lot comes my think for us, and have the testimony as world, this our a that absorb our subscription resiliency difficult It's indicated new maintain I can our guide still it's from revenue those

it's decent and new -- then think I to I it. one you've over been a part of And to five think last X.X in it. off, close team just million the And really the investments, last $XX six Got ramped go the since maybe just to but I'll -- for and Michael, I logo that's years hop me think one quarters. market

of team kind Just environment us and the off. I'll Thanks. has of current hop And logo sense that in give progressed? new activity then how a

million $XX macro a for in to it the on is continue more that though started get see it's The is is initial It logos thanks. last existing year. new more we to of difficult to than good new subscriptions. environment, progress to client this The year and overall team that. Yes, logo get really ramp say fair challenged

think increased I pipeline net sequentially XX% our that look and bit, continues seeing and we've a month And little new of grow bookings been our we're be mid-XXs. new that month. had to the strong on logos pipeline but from historically our to dip

existing a And this customers your been growth with into because entering of It's the little I new just to a and XXXX, which get in that means, and And logos, think I've maintain affects through logo realizing slowing more not want and sees. mostly economy, it So us new temporary everybody side for easier take XXXX. customers on reasons. the it to bit risks.

one right So environment quarters. is three we a which it’s to don't that, see going be macro, really now anything next tougher the to for

taking Thanks my it. Got for questions.

Thanks Chad.

you're have Mark, we Loop with next Capital. Up live. Mark Schappel

Mark. Hey,

it that few you believe watching that business for was new taking Hey, Question were question. thank quarter, customers. a business. services closely last you my for mentioned for I

You to could update on that on saw an going you were delaying eye some projects and provide? keep Any you that.

Yes, I we this. see the think and demand of Marje there kind on touched

and One profile. from we of additional two impacts the don't sources margin business services is the the kind subscription have to part revenue our mean, any services because our I'll our detachment come at We are services three. positive that seeing continued -- two with and that of say is, growth. overall and gross I growth the

we a little a transition of I normal, is, everybody that. more ramped think new the everyone saw to January was timeframe the subject the saw attrition seeing we because constraints had through of -- great we're then of and -- people lot we were up. two other The capacity as of getting December, in And bit than and

a You our have you remember deployed of have kind Asia period. notice to services where of lot in

the the affects that outside So both on us and inside.

to But showing a seen So been business and size a And how touched ethos have we've to is what grow of that business X. And it's capacity business. that on issues in companies the bit for able kind on. smaller is in million. March up of kind absorb long that business that $XX then we terms is, QX that's Marje great about our a with constraint. customers Logistyx, of of and been for inherit oftentimes on we the all And of we we've business, term. take And acquired

that's a of So see are in little driving those services impacts kind we normalized. the two of of gotten Overall, terms revenue. a actually little the more bit flatness high-tech really in bit environment,

and down ramp have large going people now actually some slowed with were slow we're very seeing that down the up think to some I projects.

We've logistics little fixed of seen capacity I of or quarter and I continue constraint slower in than the bit do quarters to think out two. issue So of next plan that here the services think business now a and kind will for this grow several wash subscription. will our

and Okay, remarks wondering was maybe great. deals then the you're provide prepared just Thanks. details question, QX additional bit you to overgrowth bit I about a seeing back from you in if countries industries your this? pushing wise, And particular, a I on in could on and little spot circling where earlier your said macro Ocean or And in to around rates. some comments Europe? what bookings little But appreciate just QX

do I contract we've When say, kind think more we of time, wait to one especially it intended the where really just seen checks. category review. right they means new get it's side always in a a logo of falls five kind the for revisit, companies. want Which companies sign to let's years. okay, lot a that's This will okay. a contracts that always of signed of of And on with in is cases, into the to more last of three us, select companies scrutiny they and couple just contract kind

choppy I of think the condition that's just that in very a kind market now. companies identifying is right overall

interest You cross but of currents rates and in the employment. clear of lot have slowdown, have then you full with economic environment indicators happening that's a

really are How do reconcile So companies like of to I think everybody points. all trying data like figure you out we those are.

pipeline. I right a row several case overall. excess And making that's of what quarters now in a to from for pipeline in slower we think The that just decision is And year. the close. main means indicator for been us our grow little past continues to

kind in of this other environment. that's anything month environment. happen really kind I’d don't of but bit longer normal see kind we close just than too some little this to that in I take two nothing think of might a this overall it's So to say specific, or tends deals,

quarter see question. strengths quarters? you certain one products trends final And then any in do this wise, or Thanks. versus Product particular other

also we and with really Uber XXX,XXX done mentioned participant differentiator our what but to of us. we've our can deliver Freight really It's interesting were for significant to We've We've clients. value that's owners, the just And network, now biggest are participants. kind important add we to they most that's Yes. ways important brand identifying solutions mote. pretty the in that our important to not

beginnings So marketplace. is starting an we of Uber a effectively Freight example of that the are where

So are interesting a of for lot that's really for people service. who that us to coming

trade one. they well. the and other actually whom, the heavily that's see ship where to I can one that's we're data is think when, And what big of in global of you investing areas in kind terms a of that as is I continuation have really interest lot seeing of in, because -- and their Accenture that of

big like now. really of I right two highlight to kind are the those So areas

all That's you. Thank me. Great. from

Thanks, Mark.

line. Andrew, next, Up America. of we have your Andrew with Obin Instructions] Bank [Operator

the Good Ridley-Lane steps contracts Andrew. evening. talk current to that? escalators environment? the increase or any David or customers you This to you on on about new receptive taken is in Have pricing pricing annual for price Could

flow discount quarters average directly doesn't since contracts we extend of price our three is we the is, two did of down contracts with rate It list renew. we have our And we raised price. found year about nature to because our actually contracts us overall going contracts. on we taking of We've price consistently. of the focus one of taken I of business. always taking We're have business We price also of pricing on for our list do things raising services the our and that pretty that been year. in taken -- really the is our -- terms just we call of kind also price, through our what additional XX% while for We've it, past, ago. that kind services in but And average, sales, that

had now that been put price a from ago dramatic it's when and you through. they're we had are just two to think our to pushback that CPI, our business I in or have current lot flow we two zero easier do seeing agents. the one on to years you and of much So also taking doesn't indicative rate we immediate [indiscernible] where escalators, But able have basically are quarters. It that into contracts and impact an

much in that’s of becoming terms A normally more escalators lot that's Now acceptable ago. we a period couple backed getting itself. than got CPI years contract the within push of of

So share I taking think pricing is everybody certainly of real definitely for there. idea the and we're our

Got it. it strategic obviously with alliances And integrators. to then time ramp systems takes

for would ’XX us you like sort in look year help XXXX. So frame could of you fiscal calendar what success

that influencing would of You think pipeline. relationship? XX% I What kind partners of like from success look the mentioned

Yes. question. Thanks for the

into it categories. think I comes really three

having more million on And deploy we've first can have The year, thought over our to than this is even of about. larger have that said, software. a a ecosystem people $XX as way actually is, ever track we lot. It's we which

really going plan. that's on So as

real part of I that. asymptote same to of and a particular our big invest folks actually around with of great the this as we're and more not to I two next those thirds ramp So metric us what and I happen far, so see kind take us have deals really this them us more hope in as chain is, partners That cases. this concept where a the customer We've that, bring EXopen to was kind had start big think in That's platform. take time the back that to XX% sporadic agreement going about little I'll an is we year. deals the in influence kind is or already integrated think of that to will these going -- is see going going for have tracking of it's strategy. for see indicator a We for this into deals been more have as the I then going to of look seven end the take we this now and our more us. to is kind But to we'll deal end get that partnerships back But about talking able part the to out metric think be proposition a figure outside-in And would -- the there. of we'll maybe talked kind actually and time. be investment idea interested to be the And then again, started towards formed slowly. completely and seen in to they they of of buy we're supply the one is investing many how us then year half opportunity us to we time. see to bringing going them different get to real had Is reason and platform, to we ’XX think a when where they and -- bring QX and maybe that we

next, Credit Up Fred, your is with Fred live. have we Okay. Lee Suisse. line

recently? more the the remind there by trending congratulations That's you Michael. and my on And for and synergies. duration contract had you BluJay. on quick a And question Marje Thank renewals taking Hey, question. been I if way, could us the have how fantastic. historical XXX%

as then year. they contract Yes, of I a companies auto think a were they found would start on look contracts they we and and have like subsequent year have this, have this their not kind to renew a of three annual -- as ability -- acquired most kind lot, would the have to we

it's several contract, not a quite longevity, look of but So several have if duration the as actually length contract but ours, was three cycles. long written kind you as was a contract very although long, their as years, at they years, of the

opportunity creating add we also for just can setting next a to client like in line really been of actually isn't contract in year And years renewal an auto three an really but like demarcation terms Our like and auto would where not we and always something contract just actually best and where And our to to of strategy talk really kind a has that. looks that to ends renew. found environment renew, have about the change where three helps that us points. we the of there deal the price where we'd to

to to kind a of wash through year going So that's system. two the or take

three question, renewal, were to your answer taking all tell the own. renew. can't to of our to contracts through at kind the that auto story year those we most whole on do Since systematically contracts, another So the time try we adjust on and renewal. on go but three And doesn't of that that because term year some of obviously

have kind We makes with work to that that adjustment. sense. Does to them of make

sense. Got makes it. It does Thank you.

thus far? And renewal from you the away auto would so how renew getting success characterize

percent think -- churn. to were I just kind in running it's at down the mean of a X% think running well, now they I plus were related and a numbers, at we're X%, kind five-ish little I now We below of on percent, number. X

So -- overall that with on we've we've seen to lower historically And strategy. ability here our we've our BluJay. to important churn, seen pretty seen

of going. of we're So I indicative think renewals how those kind that's seeing

to strategy I to just want some part think gross subscription. churn important churn. that gross context put include of that's number. drive I That's on in lower just is pretty our reductions churn

much cost would client of than be X%. churn We'll much, less So churn. that our out

pro the sounded That's Logistyx of most very more it. on a gross Got from is quick margin behind a go? issues. It you. is there and or like bit helpful. little that you. platform drag Thank Thank services And company to the question the

Yes, one? Marje, do that check want to you

Yes, hi, absolutely. Fred. And

would everything and want very that that we be I We right parts are of working it to thoughtful there still that do the we is make sure say So way. through.

it to you'll ongoing see disclose again transparent should the an couple it in of basis next but trickle trailing quarters, that still we'll and through and some of on make as be be off So sure well.

Got it.

question was the asked regard And down earlier. thank Okay, is to with final my goodwill write you. that

was to? asset that which Sorry, specific

by It's stock The value. consolidated UI auditor company for triggered price entire the requirement again. on company the the goodwill. It's the entire based move it's or entire --

Okay.

So allocation? your larger specific just asset up specific portion wondering I asset? there any was was a is that bottoms by asset that from was goodwill if a typically to

reporting on in So a as this basis. unit different driven, auditors all periodic things such traditional companies one multiple looks but value it holistic Again, basis, everything auditor company do multiples, to DCF your is that ask at a announced. it's

Got it.

take this very We you offline. you. Okay. Thank could much. Thank

Great.

Fred. Thanks

the call There remarks. This further back closing the turn in call. are portion to I'd queue. management for now the completes Q&A no to of questions like

want for and team. that a accomplishing Thank taking how excited visit as Yes. just of kind you continuing we're very all the to very I to about the excited we're business. about everybody time recap, to we're today build We're

so. seeing you great in a to XX look Have all days day. forward So or

Thank gentlemen. you, and today's This ladies conclude does call. conference

your disconnect phone participation. you this and your have may at time wonderful You for Thank lines a day.