E2open Parent (ETWO) 10 Jul 232024 Q1 Earnings call transcript

Greetings. Welcome to the E2open First Quarter Fiscal Year 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.

the to turn Buell. host, now will conference your over Dusty I

may You begin.

At would XXXX time, you afternoon, EXopen. Head this Good everyone. here Relations I I Dusty the at fiscal of Investor call. all EXopen like first conference quarter earnings am Buell, to welcome to

Today's Q&A the Officer; Executive After Marje Michael call those comments session. call and Farlekas; comments, Chief include our recorded open for Armstrong. live a our will we'll from Officer, Chief Financial

will be website Investor call is on the to A the Relations this replay on listed Relations which available company's Investor press at access our of also available release, Information investors.eXopen.com. website. in replay is today's

regarding for XXXX. Before quarter to today's everyone we year we during our and I'd financial full that remind like performance, including events fiscal future and forward-looking second guidance will begin, statements call, be making

known are our complete XX-Q of cautions applicable are a these statements statements subject forward-looking amendments or encourage These to unknown We to EXopen uncertainties. including for risks our that recent reports, performance. you guarantees and not any and future these market most of stock. new of and discussion results our finally, affect that forward-looking to or in or information And events. ourselves not revise price we're obligating our future or results these other our future of may statements factors the risks light review

included additional be our are investors.eXopen.com. non-GAAP Reconciliations can of measures. downloaded information from to today's non-GAAP release, financial today's measures website during Investor certain will GAAP and we at and Also, certain refer call, earnings viewed to Relations which in press

Michael our the turning And Farlekas. begin call with by we'll to CEO, over that,

some begin on first our as fiscal as quarter remarks strategic for Thank update joining you, everyone on thanks Dusty, us high-level key areas. an today. well focus performance I'll our and with to

strategic client potential. and stories our position indicate what on they important my to a growth highlight provide perspective market few our and I'll success go-forward

We'll guidance. second the for results quarter then your and call provide Finally, questions. quarter review financial first our will open we our up

led our Let's subscription was above total Overall, Subscription our of quarterly for our performance. revenue quarter our by of first solid quarter a begin business. end with first representing guidance. quarter revenue and $XXX million, high the XX% we had the

guidance, revenue. below our my leverage maintained drove high potential. slower at growth Despite we rate we we margins business X% and as FY'XX, than quarter, build faster beat we in subscription operating cash view QX during grew growth strong our continue to adjusted our Although period, flow experienced in is the profit in the EBITDA

call, delay scrutinize to growth closings macroenvironment. two current communicated our first large this the earnings their revenue long-range The the is As projects on a spend experiencing due softer in we primarily to we strategic subscription QX clients as deal of on are is a year factors: function continue

The more second being timing QX in weighted 'XX. first 'XX heavily is of a the of and churn half

in remained 'XX. far as trends close we the is the had It expected, FY'XX still longer macro new So of half similar to taking deals. to second overall have

I'll FY'XX. we from first a you that in more one those in the describe detail were able moments. several close were quarter, deals during to However, of delayed for few

professional clients Our technology projects. on larger ongoing impacted to of some by it. our That's business weaker spending services by continues services be

broader system reflect building also of Our professional part ecosystem of as robust services integrators growth results the strategy. signs success our in a early of

growth be bedrock is rate new as as subscription driving margin have revenue. of as SI attention very profitable principle consistent addition our revenue a services with as products well growth integrator our lower transition work attached of rate to focus a high the we of portion through we information on growth subscription This subscription little services to our our the ecosystem. will services strategy our than system As our reminder, cause that no

organic As our on drive last scale. to call, and an one that I sustainable from is can at acquisition-oriented rapid company priority emphasized EXopen for growth top transitioning quarter's

Over brand and the sales in professional are to hiring last year, regional we a refresh, operations. capabilities, taking and president bringing EMEA first new our leadership go-to-market multiple services strengthen actions our and including

QX, role Commercial our model step another with ratios potential we Today, to coverage for in join Randolph and newly for increase our During EXopen this sales will made high Officer. Greg we to changes process, that of took clients marketing. Chief spend the announcement reallocate created important sales account-based in

In Greg a who go-to-market leading is and organization sales highly keen executive, will such Technologies. Greg subscription CA has and as focus Quest rate. increasing accomplished led commercial high-performing at role, his enterprises with lead a teams Software growth software new on our our transformation

hands-on EXopen, in consists complex significant and similar those to our clients and He clients, selling large sales that platform. experience use to existing that utilizing at with cross-sell cycles are managing platform including solutions of of selling enterprise marketing has expand diverse a

He and Officer. to Commercial I'll closely for further role the new and organization our model out quarters our enhance for sales of fit repeatable the of organic great phase over a the growth. is and to coming build drive work Greg Chief EXopen's

first Ford call success builds with transformation. Before highlights automotive strength Marje, to quarter, exciting I the some and for that describe the remarks prior over we and large the industry quarter. on Motor closed concluding business first want Company project to in In from you a my turning EXopen's the

this multiple path network the platform enabling choice, win automotive our SaaS believe EXopen's It of chain supplier the We levers supply multi-tier strategy. to to collaboration the advances become largest provider ability of demonstrates on across EXopen industry. deliver

particularly for our connected to cross-sell opportunities proves clients our integrators for supply solutions also partners, engage multiple ability system and It demonstrates that are among integral business strategic the exemplifies for chain platform our projects. need It operations. large across

because value our platform organic This new as it growth. strategic leadership, special in potential partnerships technology project attention deserves see we in areas and the such highlights and

engaging basis on areas work prior business. strong build us to of iconic this additional provide for Our them with and relationships their collaborative a allowed client deep

traditional technology enough needs not heavily The of automotive that to a These economy. smart shift from engine global critical them globally constrained. to vehicles There combustion vehicles are and electric on the microchips of meet diverse components industry simply is are sensors. undergoing rely the internal major

As meet a customer industry constrained supply and now in same been cars that over the manage is to the much for years. industry way demand auto the past result, to challenged XX adapting has high-tech adapted

Our application an and purpose network are positioned this and to sector process. adapt help specifically the complex were built auto manufacturing for to increasingly ideally

experience connected in supply transformative across client ability platform. deep automotive with our chain win demonstrates multiple leaders, expand projects EXopen's solutions Through and implement to this EXopen's executing relationships

collaboration, to of network parties. reusable A transformational other chains. competitive deep and key for it global This namely, of XXX,XXX ingredient and connected software win wins our highlight in EXopen's network-centric this supply platform experience the quarter success, is large our complex nature our primary supplier serving customers advantages, unique our especially several with the

success also several quarter. We stories our first other from had

to a disruptions chain and to quarter, services the be and changes and quickly for demand, will provider inventory of across communications across its of chain EXopen's supply potential customer demand. more in client the stay During automate and the respond selected supply collaboration operations, logistics leading network, tools ahead IoT solutions application supply more manage transportation planning and able to advanced now

major a quarter. the leadership received also first during recognition technology Our

for For combination aspects network with that Systems. scalable requires of combining Magic named transportation the Transportation us achieve platform time, We multi-regional Management multimode improved EXopen the and key was this a first a in our global leader and management XXXX the muted believe Quadrant system highly Gartner position. at helped

the and second geographies. world's suites, metals industries quarter, go-lives and a number across in we This countries. solution completed multiple EXopen's product deploying of the mining During Rio Management operating Global XX Tinto, company Trade for includes largest

the of client base. Each our functionality quarter, we our software supply needs chain to diverse add to better new platform serve

global one the to enhancements shipments. GLO reduces Orchestration first released risk further and just Logistics associated during As example, that Global automates our Solution we or quarter, with

as These of previously all legs tasks against government or enhancements denied time-consuming automate restricted such and screening manual list shipments parties. of committed rebooking

I approach intelligence. Speaking comment company's to to our also on software innovation, broadly more artificial want about

clear our AI two want now solutions EXopen is to world's optimization element the make attention some companies. and global fully, software has of operations While decades. the enhance how world offerings commercialized I is learning to used be intelligence to paying of can inventory machine close artificial of that largest and sensing the for nearly support our AI demand that core more a

innovation process data AI We strategy. billions and our important transactions very remain flow our to through heavily to network detection. anomaly and the product as on rely of is such also that critical functions will AI perform

our software As power the leverage AI for all we our continue for benefit of our ways to further clients look the to investments and platform, we in make further of company. of will

company's our EXopen's to members to every for my team want demonstrating values operating world express thanks I around closing, principles Before X,XXX day. the talented and many

unique operate to to efficiently to innovate client proposition our success build stronger to commitment are to to key the we our value company's clients. Your provide relationships and and

And call Marje? I'd hand our like financial Marje now to to results. review to quarter over first the

finance Thank notable by had you, an with want as year afternoon, accomplishments. EXopen the and Michael, team to I the productive good to thanking we've everyone. incredibly start start several

improvements live went driving and logistics finance We the variety of and functions cash focused acquired operational across our our flow leadership the with business, efficiency completed team. on company ERP drove build-out multiple a integration of of

top rate. despite EXopen the first profitability growth achieve strong quarter, and drive leverage These efforts operating helped during normal the below line

I'm one-year proud accomplished mark what I anniversary As the of short the in EXopen, finance CFO a has of time. my team as

revenue XXXX I'll year-over-year quarter organic Turning on guidance. and currency and for Subscription $XXX.X of quarter with the constant X.X% XXXX adjusting our and then was in of negative a full-year fiscal million, when exchange to X.X% close first by $X.X fluctuations. basis our fiscal reflecting rate from the first QX impact an results, million discussion growth start foreign reviewing FY'XX a

came first to the quarter. of guidance on fluctuations. foreign than fiscal to large our growth due quarter earlier exchange revenue revenue high expected the of for the reflecting that rate during timing a XX.X% $XXX million, negative negative basis services above million impact and and when subscription was adjusting Our range, XX.X% in other million currency end $XXX closed Professional year-over-year the of constant an primarily deals negative in million $X.X a $XX.X organic from

revenues we On from sequentially of quarter first were QX our expected our last fiscal to decline earnings that FY'XX. call, our 'XX services noted

revenue to to services partners. system strategy We expected to our integrator have decline this part undertaken in the due transition we

important revenues to on large service came However, traditionally been ongoing an services that due spending weak revenues in projects the have than baseline service expected us. of weaker continuing QX trend of by for source customers primarily

to Michael brought services strategic services integrators, profitable partners our into These franchise new and work enhance our organization drive subscription our as changes faster our continue go-to-market growth. to means noted us as our earlier, a even reorganize leadership part maintain to future plan as to have function. of As larger help we recently shift should pivot services we

We're our positive seeing engagements. existing with PS discussing momentum on expanding projects customer new and base

was revenue slightly year. to over further be X.X% half quarter in a the $XXX.X negative the to to constant basis growth quarter organic second impact We of after growth foreign the for X.X% adjusting revenue $X.X on a and year-over-year of expect prior-year in higher quarter million the currency flat fluctuations. million, negative services first reflecting and from the improve fiscal second exchange sequentially sequentially Total for

compared first fiscal to million, services or organic lower to second currency on XX.X% mainly in service prior-year constant X.X% quarter margin decrease as in to reflecting resource first expect basis. on which currency gross margins, Gross improves. The basis gross was quarter. we professional the of was half reduction X.X% quarter the the XX.X% constant our $XXX.X improve an and on QX due decrease in Turning was profit utilization XXXX, a XX.X% profit, basis in a year-over-year a small to the

and EBITDA, our increase million in to an first currency on the million EBITDA basis. Turning was X.X% a prior-year adjusted constant X.X% compared to $XX.X quarter, $XX.X quarter of

adjusted EBITDA compared was constant XX.X% quarter margin prior-year basis First XX.X% EBITDA margin the currency on quarter. a of to or for XX.X%

headcount-related which contractors facilities, during cost operating the which actions consulting, More benefits our business. we our quarter adjusted the and the as an grew EBITDA as run ability total in in of well quarter incremental to than spend demonstrates on revenue is benefit fundamental leverage, from lower first broadly, first continued how performance to realize reflects again This EBITDA faster growth the

efficient one drive we focus line, needed cost to growth is our goal are an to our discipline. number invest we committed and and maintain operational While the top strong will as structure on accelerating

quarter. charge loss profitability, during ] for Finishing of up a quarter million. on the net million the $XXX.X of [ goodwill loss fiscal impairment XXXX was first net non-cash XXXX figure $XXX.X includes This (sic)

the reset discussed, of value the of offering our as previously IPO per $XX EXopen's carrying because using significantly was part As share. price of transaction goodwill it increased

took value potential to price the a declines. that triggering goodwill requires in events, important triggering note for by to carrying monitor impairment continually was It the our share companies share GAAP QX including price decline businesses. evaluating is place event that want not the our to We acquired issues QX operational our by emphasize driven performance following of to impairment FY'XX that or earnings charge release. related products was any

cash turning flow. Now to

first quarter, the fiscal generated A to is to finance of capital driving collections of broader testament which cash During adjusted improvements million the we this the quarter, commitment working was performance strong driver a $XX.X flows. flow primary during cash operating the good year. team's

our the of the of strong view cash in and an capital business cash in combination we model in Growth optimize a flow seek future be to a source I and being structure objective as of due seasonal strategic expect would note lower indicator sequentially advantage growth. annual flow our a important as financial in as core bonuses cash cash our competitive flexibility the now we we second team quarter. fund continues and growth for management QX, our flow factors paid that of beginning of to to

this hard I guidance, our EXopen our to to to synergy our Since acquisition update process and integration logistics. and provide turning integration transaction drive Before related teams want targets. meet closing cost an to worked of have multiple XXXX, operating the in on efforts

ERP projected over we quarter, integration logistics to were of just transaction the acquisitions, of end report to platform. operations now pleased is for existing the very With instance. logistics our us, $XX business be single four also have of EXopen's I'm first and originally behind we that pleased exceeded synergy total after and the project are that a entities into this the our on logistics to completed I'm complete ERP targets million. integration the shortly report substantially all synergies

the we year my for fiscal savings on action synergy approximately now have of QX of XXXX million As and $XX.X results. synergy end $XX.X in remarks completes realize of expect to QX, This million our full FY'XX.

a I'll of financial this discussion At point, turn guidance. to

X.X% the prior quarter compared first second a for This million X.X% of the as terms FY'XX second growth rate year, guidance fiscal be of In revenue new of subscription the to $XXX range in represents this quarter we quarter. to expect million. of year to $XXX to fiscal

full Turning fiscal year XXXX. to

guidance we issued We quarter, reminder, last are the year as following reiterating a the of which full consists elements.

million We million expect subscription revenue in the range $XXX of to $XXX for FY'XX.

be million within FY'XX expect to million. $XXX $XXX We revenue the range to total of

We profit to of expect within FY'XX range gross XX%. margin XX% be a to

of key adjusted FY'XX On EBITDA of margin, for million. EBITDA margin XX% cash range expect formal $XXX XX% in million additional to flow the of range EBITDA, quarter on we adjusted fourth around drivers within FY'XX. This also providing Finally, for revenue, details to be provide to $XXX FY'XX. our implies an certain earnings to addition call, guidance generation we adjusted

performance a related our to the place year. a I the we an year importance cash we on off and continue on expectations as robust be performance. flow cash generation to would our strong indicator, with update we're FY'XX cash flow expect provide start to strong for strong key a like flow cash QX to Emphasizing Overall,

changed. not to cash. in working FY'XX, expectation CapEx revenue drive drivers include be a capital key expect X% our We year-over-year modest plan in significant In use capital cash versus to an FY'XX terms in and M&A CapEx. X% revenue has of which We full still of year improvements related working around FY'XX to approximately be it expect of flow, of for still FY'XX

be to approximately increase $XX rates. market range an sustained We now through net curve of year-end to million last a within million fed LIBOR million, $XX higher of because estimate interest provided our primarily reflecting revised funds steepened, the our has is $X expectations from fiscal quarter. expect increase SOFR cash This for

benefit callers of into and the moved money cash interest includes to have rate on cash year generation that QX rising earning during income full we receipts are for executed the also rates. strong cash because we now our projection new the Our due interest of interest

were in including Finally, FY'XX. integration, we to be expect which costs in million one-time $XX lower still cash FY'XX M&A substantially

for of strong leverage our to the fiscal four net still year. Given times by to FY'XX generation, outlook reduce the or below our cash we expect end

we sum To flow investing on revenue organic up, continue to growth. driving focus cash in foundation to and while our faster strategically business profitability the for lay

look I and questions. us and your Thank dialog continuing remarks. With joining prepared for the we to Michael that our to concludes as the take are today move That you we throughout ready forward year. all

and Operator, please the begin up line the open session. Q&A

we will Our from Instructions] proceed. [Operator first with Hotchkiss question At time, a this Please session. question-and-answer Adam Sachs. conducting be comes Goldman

for very Great. Thanks questions. taking much my

about You sales talked level sales reallocation a the some you in business Could of that's ramping does for of coverage there about a efforts and reorganizing been like driving what you look spend the little timeframe so what bit the and your that talk new reallocation, How growth. spend then of efforts think organic is? the little think much. that And bit about going? terms guys? sales about how around just outcomes organic you right that when Thanks for

year work your our more the early really change done have the thanks, kind kind we've most change that clients and to part voice. we've through Yes, opportunity. Adam. to Good is more of the in most largest the worked Hey, we so of where allocating hear and of the fiscal resource of

So we'll headcount in we the adding half year. next the as start kind into work additional of of middle and year, back

step we our the the that all through back other see it of and where year kind we think of we expect with getting should growth initiatives behind rest and be. to us of that lift have the idea up is to would So now the

Great. Marje that the anything read And being That's you on like to super in subscription Michael. in uncertain prudent it first results the macroenvironment? revenue despite than helpful, the just guidance, quarter, then strong just other maintain pretty around looks the there

our Yeah, very guidance above thank our proud question, of We're for Adam. coming range. results in the you QX

As mentioned quarter, things overall sets. closing We good really ago expected. think in my prudent range really in large maintain the the which had in would guidance I sort it say remarks, it year. some but is was again and was as timing two progressing of prepared it sign, early deals again it's we that's to a earlier the set due to of months primarily And are

update no year So full guidance. to

helpful. of you first costs? that you that headwinds Just really services wanted more may is And a That's understand the you services how that touch on business. Great. the things saw quarter sense get one-time more of the give discretionary parsed implementation would great just like one in like then in the revenue mentioned of quarter to to of revenue impacted me, Thanks. just how last some out much base number. that exposed from things be ongoing versus services some us between Could on to you and color be the

Yeah, thanks for that.

amount adjust have the fair upgrade a been and ongoing long of high-tech for work us a platform large tweak implementation, services and many the continually have using We years. customers our eight many with mostly they to XX who've where from been customers time, very of

know, macro conditions of that companies got desire profitable. last were the year, bit suffering to own we get a you curtailed and period, saw their really little as technology most these from this after a That more all bit in

which is out, think of We and I a of of percentage that large it it's broken has a haven't fairly that down. basis on reset why year-on-year that really kind come kind but

of half to that in that on. get as the work back back as kind you kind comes of expect year of We normalize the

business, integrators is system to that I'll our that on we revenue are as of our to services service that other giving The part of thing starting the up some strategy mention growth materialize. the

the low that attach with subscription side lastly, having then rates, we of are mostly network And on additional products our very business. come

to and So forward. that we things which now, in subscription to our decouple continue growth from going those for affecting services are is units rate our of three expect business kind why

Really Thanks, Michael. Great. Thanks, Marje. helpful.

Thanks, Adam.

question Taylor Please from with The McGinnis comes proceed. next UBS.

so Yeah. much my Thanks taking Hi. question. for

I about is sounds thoughts you're The the expectations I the like is, is, to of the changes impacts first some can but one made that share yet, new you changes, just But normalization sales there. of disruption comfort in that curious and line have last quarter, see second just or Greg and any guidance I know, you of started on anticipating front? the the role. you're this Marje, have to, know this that there you've starting some this any him on like And sales part you've how it for just some top you the talked future high-level talked with then on if anything question or not your level curious margins? hasn't

thanks Taylor, question. Yes. for the

the the a of kind of now way decade, necessary in requirement kind was with operationally as our the We almost we've We so. this the and titled it company became part operations past rapidly. built doing that of strategy, that articulated, idea our growth for As was oriented. did over that that and COO, very attention we was it because our business years scaling business of XXx profitable around and eight on centered

we world us need scaled this brings -- that's forward. leader from of $X.X and that all with want going build our a around part team less has really mostly billion have to is on process we're and plan and where companies that we experiences that at and getting to those what's of necessary be how sales scale multi-step is of Greg place the understanding attributes large sales-driven for his kind for kind selling repeatable companies organic and regular to up way that of think I in part a the to really grown

about the part super them just have process, excited thrilled the next of it's then of to really that. forward terms go think and our I So in

been we've incremental along making the steps, next way. of terms these In steps

improvement as a we Marje? build rapid engine. a incremental repeatable just So organic dramatic very kind shift, but I expect of sales don't or

Yeah, absolutely.

the incremental top lot the about, Just there to And that we talked is team the change line, changes of our impact on in terms guidance. year. go-to-market terms of when about this and guidance the again to of that the part the our full year, year all right, what's a we add for reiterating of it's we're guidance, plan to we've contemplated set talked but for again, impact go the investments nothing cost sort no is really in update, sales plan change this way, and part same to overall, all of of the from to

Awesome. you then implied the question we about my Super growth saw revenue, when in of what improving we like subscription you you talked services half And about or helpful. sequential versus guidance last back sequential in it saw is, the full talked a improving think revenue for XQ. versus on about, what XQ, the basis, what's sounds year

in is that what curious giving perspective that guys I about in a you guess some could quarter seeing numbers? the just that comfort deals some maybe you are closed that So bookings we recovery from or those talked large you see

absolutely. Yeah,

than and the So again months as overall, discussed and of impact. two you're in stabilizing, very primarily weighted we large really some as of what seeing half, we not which deals as the of then, is would more the closed the terms business macro year. half mentioned, churn for better different it's sort as be seen in we But anything referencing, have in terms expected macro being I this but that's mentioned, driven say, first encouraging. had half to And mentioned subscription ago you second the that QX, we're first expect we

some months again, changes really that to terms in And some based be and business, flat hopeful we're and up we two services And what mentioned slightly the half will side, leadership new excited very the signs taking we second better of momentum real we and sort last spoke as the there in no really then on do on when services the QX be of earlier, in are seeing to are initial the revenues saw we that of we just expect about change on ago. the signs. encouraging

comes Fred Okay. with from The Credit question Please Suisse. proceed. next Lee

bit, Marje. more the Hi, half being you. tougher just to because for about talked to you macro if deteriorated 'XX. it on or bit macro, from Last Good if little just second stabilized end hear but deteriorated just into I be from quarter, half the QX, was stabilized just fiscal from a fiscal sequentially just Michael of if wondering it's crystal wondering and little clear to like than last it's -- QX? spend to I sounds first it was quarter a QX the

How of mean I the it on is our Fred. choppy. it's deteriorated. of freight kind it's I -- think doing? you're other market don't parts side, Hi, you especially still in still of trying still to kind at the And its look business, work through process.

think it's But I think it's just On choppy. deteriorating. the trucking the don't side, you see over I place. really that all

is doing well. Some not so companies some doing well, company

choppy this not I'd But So side at now. I deteriorating deteriorating, -- it's it's I'd point. say how more right would just than think the on it's more stabilizing I That's say characterize it. for

acquisitions. good question related appetite for hear. to My is incremental That's Okay. your to second

of peak integration synergies the behind the it's in the logistics company, it sounds been that have have like your like marketplace most private come largely valuations Now interest? sounds enough realized, to

Yeah. Listen, that. we we acquisitions grow have business mechanism through our through great a and

to However, revenue now need size, scaled the that's way rate organization really our realize in a we potential business on focus growth and kind our sales organic we are of focus. a sustainable see, regular our more as for of kind primary us attention to we really a

when being. for I high. terms primary it price don't companies going our time be I don't primary yet focus are there pretty think come in to be of a yet And the valuations, market, will forever, these focus it's and smaller I think look, still time think but our is to expectations there's all

build a organic now can. think an engine know we sales I is to for great So us we that time

growth Got it. conviction of look the how quarters? is churn and trend revenue, is going kind as Thank half just your half implied couple the in gain we the the through your you. My in subscription of of to over in do declining year, you. the back conviction downtick the last that back we Thank question related to numbers next

done Yeah, analysis this page we on Fred. looked and of of lot kind a of we've it Sunday, at on

that are and So And ticked year. up understanding we churn remember, a world our happened the we a way it this strong where into and in it to specific having in just churn conviction have of QX we it year this normalizes. a back of very pretty in that a happen have that happened have half next clients that and class half the bit, first of

it normalize and then we a an we we then and for go year. kind indicator next of get where So were, that revenue impact kind be as as back of into and that to has expect we obviously expect better to lagging

Capital. please The question Okay. comes Mark from Loop Schappel next with Mark, proceed.

to -- Hi. some Michael that question. drivers my additional some deepen with also decision provide you you're And little I taking details you. was more using? wondering, if looks a the your if relationship I products solutions win. Good of details give it comments, the starting you of maybe the the on wondering could appreciate was or for afternoon. like what Thank Ford their you I with or just were could but for them? comments on

us, not more important really and great details. Yeah, Unfortunately, a now. are it couldn't and into was of a go great be we're they're any happier, to win, able to been company kind obviously obviously, they're have iconic super company

big us lift, thankful appreciation to are name. for That them big a allow I their a have them. use to for We was

supply with about time, X there, knows automotive comment perspective. this I mass that is supply I long readily I can chains a chains. a a And X I automobiles need see industry, available. things Automotive everyone in chain suppliers. and the speak little available need bit and Tier multi-tier a I X, generalized and materials, for supply are Mark, made that made need from aluminum, readily are tires, automotive about This what

a years that on change is that and basis. happened has The the three last in more componentry much materials constrained the global is supply

they really actually can has is day production supply impact produce So understanding what a deeper on what every big into a line. company constrained their chain, to supply a

the further that to a And they like, but complete, doesn't base able supply problem that's the have right we'll XX what confidence it, industry into reworked. the much literally have ago, to have making chip look a that of years XX.X% be out the chain. to car is be more not looks network-based do the connected the high-tech which with saw This has has to same more can supply

an that that's perspective automotive talking I've industry industry I many -- and companies. So been have to automotive

change our that and terms happening than with of auto the them that industry, So release. give great I what I've I comments within a we're made about is of and in speak industry really other press kind just Ford's auto want perspective company in but any the doing to you the the can't more

quarter back that something saw secondly, is comments wondering your going you And your the or growth if noted thought potential. in appreciate quarters? you in was then I was those you there. prepared guidance prior to was what was the clarity I that company's you remarks, to led well you just above still remarks, that to this just subscription there some below add

just of to grow potential. that a to more think just is organically, business have allow kind a potential general get to think we I bit and this business change Mark. kind this I comment, I to of me to have clarification, we you No, our that appreciate make.

margin a I that's these do levels think guidance and has quarter, clarification. nothing but it the very So this, possible We think long-term with plus. that's an have to XX% out there important at we with that's

we on kind business. a of think margins do company. high very can We We a unique us makes are both, which focused generating in

we terms we some That's potential of that care take potential grow have believe operational greater things to meant below and to have our what in of by I go-to-market. and I our

I That's appreciate Thanks. that. all me. from

Thanks.

Okay. next Chad. proceed, is Chad The Bennett with question Craig-Hallum. Please from

for Thanks question. Great. my taking

want So understand make deal sure the just large to I commentary.

that you you the then one there quarter. Marje, deals you Michael recouped indicated are deals large your prior in And I in wise? think, earlier remarks that commentary prepared hit several that actually large were from those same indicated quarter, this I quarters, in saw think the

to hear in they And those and said which deal. we our a to of happen able There a large voice, what the quarter, happened get of because revenue had given push with the grown, deal signed a to had is, that's We large from lot good as out are earlier the days of pretty good saying pipeline revenue kind large helped we're kind quarter Yeah, last deals. perspective. us because we somewhat flow. impactful that quarterly -- we Yeah, of has some Chad. think I and time, of we

the of a think they are one catch. I good same. That's So

Okay.

some, here So mind, some effectively incrementally I you growth quarter subscription year-over-year guess you recoup and flat with second X.X% for it, subscription of, mid billings year-over-year. in that and for your guided call calculated added were you growth X% the if

the people So other asked think have on this call. I

guess, got and in it's are macro expecting to high churn I'm in So midpoint. the the half. kind not see you are saying get half half, and improve we where reacceleration your a improving QX second second significant -- of I we How second relative the in in in the the conviction, you QX to do bar, but to to were to pretty where billings

So I'm understand the to trying of just there? kind logic

I -- Chad, logistics normalizing QX, you're think not think X% you're doing happy year ago. was what from I the growth, over out billings in But when at is it to maybe impact So, looking

Subscription billings?

Yeah.

Okay.

But you go with specifically through to happy numbers later. those

Sure.

But I logistics think taking the not you're out last from year.

annualized, should right? logistics Well, have

Yeah.

that, to from over normalized I'd to growth like So wanted just but But, just X%. year-over-year billings follow-up sorry, -- logistics, question, subscription correct for that I was

full logistics, Didn't am year also quarter I Okay. you the last the wrong? have or

normalization the balances that from walk quarter. change that in that that's you the out receivables. to need a It's But from through happy to normalized So works. a how accounts normalize basically --

Okay.

expect the to improvement And best that's any second half, so you don't ask it? in macro maybe way the

build it be, -- seeing our year. expected overall to we're lot we're we as a the expecting think Craig, of I for I build didn't and think into as of of kind we kind plan macro said,

as I expected. progressing So are things think

a modules how penetration to four many think three, then, Okay. in about have from customers standpoint? just is more than way there a And Michael, the two, existing base today,

do of larger specifically, were customers a And with at customers. work, of that, which the we especially the lot added. of We more that two BluJay know and acquisitions, had last some addition

kind are or seeing one incremental have We still but them pickup, of bring of either we when them many in. two

in definition, with they single company a that's by solution come because -- a at. So point as all that coming

So that process overnight. happen doesn't

adding examples kind one today. and have on to mentioned We of of clients many the solutions call we've

that But continues. process

I are They potential But supply see with incremented us. the applications have our because a just success really change change success already that already clients long-term is don't there know their business already single overnight. them is they chain we the don't us because more think people out over have in time, that's of in partner. access now probability proven

back solutions. around is we me our because What have takes to question growth lot about conviction Mark's a of

time. over going lot just it's us away and chain for that the have our those their of back gets only customers customers, We of a time. increases to to a supply because need nature long-term of matter penetrating over strategy Which and go aren't software

taking my Thanks questions. for it. Got

voice. your to Great. hear Good

of The America. Please comes Obin next question with from Andrew Bank proceed.

for Good Andrew evening. Obin. David on is This Ridley-Lane

subscription this of expecting the bookings, churn at that sort of basis wondering second sequentially? implies the So elevated bit in sequential of you what revenue. is the sort of quarter on looked and it are much a that on just for if what puts you're guidance last How just what versus and takes

main is the churn And half quarter mentioned, we talked bookings in specific here. big that don't and guidance, we've churn say, has prior would of -- quarter first you I in obviously, the about the elevated a provide this again, has churn that. impact as but part

couple more on And the think the sort are the signs I client you far to was thing that see large of so you, shifted bookings are know the starting to, have it. mentioned but of starting that's based broadly, year, Got I this on then behavior that you improving? client you wins,

don't large it's of But big -- had overall. a come in very deals that for companies are say items because writing we for this think at were they're I judicious ticket cautious partly our that I'd about I long still a point. long-term time very see through. commitments number pipeline And really

approved the things really to that to rushing has steps. not multiple do do get go changed. that think through that don't they're So I

So increased the duration in We is see our -- that. has pipelines.

Now they lot a obviously, goes have And shoes a bit. you means then go, when it tick bit. a down of our up that

or in I sentiment don't at this change think But there's point. a of behavior lot

have inflation, monetary aggressive the you an understand increasingly time I have high still think high employment this are you people trying to environment macro at same and where policy.

year we're think looks I on. out what to the So like trying as that figure goes

forecasted And is not to out trying five quarters to quarters. I And for there's or six happen. a last the happen been going recession now or figure is everybody think that

to be a So for and I bit think with us, -- this honest in last particular to I that think a is our bit, of a markets, going normal normal is you.

Understood. Thank very much. you

you. Great. Thank

We have in no questions further queue.

This may this the your Thank participation. time. and question-and-answer your lines have the for today's reached conference you end disconnect session. you of at concludes We

you. Thank