E2open Parent (ETWO) 29 Apr 242024 Q4 Earnings call transcript

Greetings. Welcome to the E2open Fourth Quarter and Fiscal Year 2024 Earnings Call. [Operator Instructions] Please note, this conference is being recorded.

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

You may begin.

everyone. afternoon, Good I the time, XXXX to you welcome Conference At Fiscal would Fourth to EXopen Year Quarter all Call. this like and Earnings Full call Investor I Executive Chief Armstrong. our Appel, Officer, here Head Chief Dusty Commercial Andrew recorded of Chief Randolph, am at from Buell, Officer, EXopen. Today's Greg will our our Financial include comments Marje Relations and Officer,

on call A open company's available Following for session. in listed transcript call which our website on we'll Relations this investors.eXopen.com. the also Relations release, is Q&A the to replay those will website. of at this comments, live a and today's access press Investor available be is Investor Information replay

statements forward-looking I'd everyone and call, EXopen Before events subject during cautions These for we financial price risks performance, remind to these and amendments for including review are our these applicable statements uncertainties. or like XXXX. fiscal affect future any are our that encourage reports, or risks complete stock. to market full begin, XX-K year future regarding known and We that statements discussion unknown other most first of recent guidance forward-looking factors quarter future be the our of a you of may that making including to our today's we our not guarantees and results will performance. and

at Investor press to release, our and be information GAAP to and information or results additional earnings included refer of investors.eXopen.com. revise downloaded Relations are in ourselves viewed to these in obligating call, Reconciliations today's can non-GAAP website not measures events. future or measures. from our financial which new are Also, certain light non-GAAP statements we of finally, during And certain we'll forward-looking today's

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

on questions. Overall, state improved growth. our then you, to with in organization. pleased for Then that for in sales reaccelerate on is to key work fiscal quarter that number thanks and progress I'm shown has and year results well revenue engagement to our our will ask Marje sustainable shared implementing everyone up made we organic review company update say execution fourth and fourth the previously solid our cash guidance. fiscal we've and the and and for thoughts with conversion. with fiscal results begin on some open he to today's were will full commercial and call I'll on strong, you continue And the Dusty, a plan 'XX importantly, in our quarter's operational strategy financial call. we returning we of leading the you, the Thank EXopen I'll of quarter provide we And and call. including have the business finally, expectations line profitability joining 'XX to to perform our flow. last previewed client areas, growth. organic to Greg

quarter, key We the evidence during are And in tangible right this of the we areas. on saw track.

I'm confident While time the do them can key have reasonable and we we the over we quarters, still frame. identified to issues address have a in coming work

provides forward, move are supply we we well volatility we which tailwind for for our demand strong EXopen, reasons supply to Global for solutions. providing highly is As chain a have chain many of This positioned opportunity attractive capture. optimism. differentiated market an

companies working core move products. and and absolutely that most with important activities of of they world's privilege on the the sell their make, how operations, are have their We largest

industry transform leaders as these chains increase flexibility We they partners their are visibility, supply to and efficiency. to long-term

a spanning our our To and clients broad clients entire serve and management in set impact multi-tier EXopen network to platform across distinction through our put in to we robust complex face. with do to simply, time partner our manufacturing. single Uniquely Our providers our channels And Powered and demand logistics our mission largest of enduring is value platform logistics clear: agencies. it by enables accessible and channel industry, and activities links retailers, the success. measurable industry's air this customs our supply integrates to use deliver chain. those determines collaboratively is to multi-mode success suppliers, service the clients. a What software our with and real trade applications supply diverse capabilities distributors, and planning

as commerce In December, in consistently named network IDC analysts leader time of solution strength by cloud-based leader multi-enterprise third supply April, the category in multi-tenant And Industry selected chain management providers. a the Gartner. transportation EXopen for EXopen recognize software. again by a the our was consecutive of was

Our leadership powering global prominent supply plays role the is in also our platform chains. apparent from

deeply For companies Fortune across have of the large been global products XXXX years, EXopen's out carry a commerce. share that embedded universe of

point. Here this illustrate are of just a metrics few to the

Our XXX,XXX billion has platform now transactions connected processes and supply annually. parties XX chain

freight ocean handles bookings. ecosystem logistics Our of all XX%

and trade compliance global jurisdictions performed capabilities import restricted and annual global XXX billion screening. trade solution party provides export Our XX and

networks. channel software Our and tiers million managed connected more our of and $XX orders across annual resellers enables X partners annual year XXX a million of than our shipments payments and million for billion $XX extended applications multiple channel customers' incentive supplier supply collaboration

that if to care. situations, the of our distribution is software. relationships, so the competitive of a why impact uniqueness in unmatched and and subscription several with highest Given These component deals I show strength mission-critical operational electronic is such EXopen's validate continue portfolio CEO dedication client fourth we health clear retail, the provide the in a impact, once us global is EXopen of In scale closed passionate supply regarded. diverse about the again the and value. the chain our deliver platform large people. companies our well highly They company manufacturing, complex goods often, wins quarter, to when to major in selects recognition believe consumer leading companies lead projects major not as always, as world's it But and areas is trust

select distinctive we impact with client-centric market not a EXopen. when make And solutions to it they for a by difficult and backed demonstrate to very or approach, we selling customer that go

entire centricity my have brought a approach I to client same EXopen. career, priority, and the made I've top For

Just Europe last event part clients and with of EXopen's along important XXX Connect I partners. Amsterdam, in took week, most Annual our in

I world's the attended that needs customer-led X-day sessions During chain complex the of companies. highlighted some event, pivotal role the addressing and software of supply EXopen of leading

and deliver track seven terrific some we're impact come that and talking I of and relationships. had extend view those pleased of and doing about with larger that our to eight and privilege meeting progress, back was we're and with implementations value solutions that the a work clients distinctive I to we're on or

In March the accept CEO becoming fact, CEO our stands dozens X and EXopen's I the months of In most is have in deliver. with products conversations large what in me value this distinctive permanent year. out unique had part, to role of is clients convinced ago, since this what Interim

company customers client XX fulfilling supply customer solution For while application using fully using costs have application utilization capital shipment used than leading increase uses and more our global working achieved has consumer iconic single reduced our by carrier of on costs. when in A countries parcel XXX% major an X/X solution global a example, automate filings multiple a has of expedite trade this times process reduction agreements goods trade in planning our A transportation orders end has to a XX% by inventory-related to our free by reduced technology XX%. customs logistics applications interface. supplier its

consistently drive delivering this will EXopen it themes Meanwhile, product products. value personally we partner our invest to a Communicating our highly CEO. Clearly, distinctive clearly as vision. is valued do we will companies and I to and in are continue the use that everything long-term that

product fiscal supply which new Just family supplier network a capability last within is week, of launch we discovery first announced our our applications. 'XX, of major

have In addition, our X we quarter, platform, for we which features new roll across done each years. out

delivering of behavior clients. is innovations time predictable our a by highly valued Following

management a monitors global Our combines prime our content And over example repository complete this. is personnel for proprietary of worldwide trade EXopen's staff jurisdictions a trade trade with XXX our industry's database. trade updates Global solution knowledge solution XXX rules across application global most and changes. of the any global best-in-class trade

data global combination of advantage major rules an full to and free controls. empowers around volatile savings dual-use stricter sanctions programs customers forced our agreements the labor, with of take EXopen. in of and And trade data is application real-time duty arena a ever and and compliant for trade, This differentiator stay

net Finally, which retention with I of year want fiscal to And XX%, best-in-class returning of ago. EXopen to emphasize of the ended retention approximately importance from XX%. gross approximately a down are retention We levels. 'XX

quickly putting the tried management is analysis experienced However, place. churn I shown very true of that which higher personally with has our we have 'XX, processes that are fiscal in and we much this of led controllable in in-depth

significantly in and improved progress the in we trajectory last quarter, stabilizing have visibility its made into forward. moving churn Just have now

retention More is a across client-centric broadly, entire our the company. instilling high key to consistently mindset

We of do a this will in ways. variety

We expectations implementations. our will exceed on clients'

measurable will unique We deliver value. and

a project, large client add or small. client and transformational With at deliver us We future clients then integrators value-added we will willing delighted EXopen the for impact leading relationships business. approach, every to partners. and can build we first, referenceable our closely cake for help long with systems will result the which work engagement EXopen, will win clients every can term, in By this putting to

that has the of at already to this just plan other returning our do. been of has business, to that fiscal efforts touches positive And with results solutions were distinctive double-digit client company generated We conclusion, growth everything organic the cornerstone to and we confident successful elements and Delivering it and differentiated am In is led of 'XX plan value, open our major I've the while enjoyed approach build few rates a ago. growth our the achievable acceleration with at companies. the momentum. years that I very clients progress throughout growth on core many

business we to customers employees, in our and the success While benefit shareholders. made changes are the our will are still direction work have we our moving the right that ultimately do, for to our groundwork and we laying have

go-to-market an Greg I'll to now ask provide activities on update our

Thank you, Andrew.

organic fourth to our execute fiscal During our continued quarter, playbook. growth we

organization on putting with Our now value-added first relationships long-term entire our and them. aligned customers commercial is building

impressive transformational me. is a of PTC. and software announce joined continue North has Sector Steve EXopen our Baird and President talent commercial I'm organizations our Services team. as [ He directly excited me. SAP, record track and an delivering SVP Apptio new that leading as ARR reporting We to as Steve a has high-performance experienced also executive bring America sales to in to firms directly EXopen I'm new and addition ] to growth leadership equally pleased as joined proven has as has Global such very to Nordinic background reporting that a fantastic sales Mark

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was the high-performing results. place quickly existing at new we new to conversion In QX, leadership effective to with are level put won a And ranging organization, deal than and rates establish we focus half EXopen drove families QX, disciplined These initial enablement improve in deals execution. from 'XX. of then clients. first across of product multiple sales producing elements and cadence My near-term sales sales efforts FY a key a important operational much already in-quarter to in did as higher at

we With future sales capacity to ensuring these opportunities. growth. A and go-to-market position now is more highest pivoting are in to effort aligned place, blocks cornerstone that talent optimally for our EXopen are growth changes of to designed to our building higher targeted basic model our this

farmer Specifically, and be existing client highly parallel, that focused level a account-focused and responsible experienced we existing will long-term both driving client the growth These cross-sell responsible retention in product-specialized forming product we and satisfaction sellers of consist for client will will within accounts. new strategy. These partnerships that build are skilled are solely growth for are teams are teams maximizing our In for creating vital logo teams hunter teams. base.

returning As alignment, commercial we levels. our and success to will retention bookings implement world-class this measure primary of be new in acceleration

and critical variety this we base, existing executing are logo new cross-selling system X end, our proactive our partners namely tailored integrator client business. in To a measures our leveraging areas: expanding of

for vector a Given is pursuing our are cross-selling EXopen systematic customer far growth existing fashion large we now more critical base, in than a the that in past.

similar then deep product-specific led we have identify use penetration for successful current on strong clients. these has existing now we and with and Based present team into cases product a Our detailed of opportunities by with $X opportunity, key have dive cross-sell deep this clients into insights this product quantify work, We client billion cross-sell. visibility industry on focusing areas where and opportunities base. our that line to with use size to

And we penetration, potential. upside solution identified modest with very but addition, accounts in significant have another low XXX ARR

We level to are in campaigns rolling out targeted areas. cross-sell aggressively product both

this growth power well-executed for I expect largest of the cross-sell, current and of future be major source applications. supply contract example of We illustrate To EXopen the manufacturers would to the a client, one of world's cite of the user a EXopen.

supply win into positioning selected recently actions. GLO orchestrating or by solutions client future met multi-mobile that in needs. as EXopen's Global the them uses We to unexpected the stage EXopen orchestration provide clients industry-leading journey. achieved real-time solution shipments identify This by with partner be next tools this events important visibility their Logistics immediate cross-sell resolve to and chain and to long-term a corrective GLO

organization meeting move enhance will in my realigned and To also fourth the scrubbed have To not consistent probability. directly We've pipeline quarter, new inflow ensure stringent of capabilities leadership, our responsibility. growth we commercial early-stage of into under fit report EXopen's further sales this the prospects. strategic high-quality sales function, the win pipeline has of our top criteria we funnel which for that deals, marketing

now to pipeline foundation already now the have growth. pipeline direction. improved this With we in in accelerate moving rates By pipeline the the approach result-oriented our place future we've management, a is growing achieved, conversion to combining high-quality with right

collaboration Another promising proactive is integrators. growth for vector systems with EXopen

approach Andrew needs then our with co-sell that to account have SI well. teams select clients EXopen's and strong is with to in well closely team. goal product jointly supply bring and match forge together I working the worked The is go-to-market This offerings partnerships alongside identify with SIs. chain sales to

FY of of become SI-related Our a can and This partners our future 'XX, in contributor services as grown the materially the pipeline increased projects pipeline growth. half strategy SI well. back that evidence has of revenue major is our our to SI

weighted years, to and We our are has planning steps also logo targeted In procurement business. been toward for logo solutions. deals transportation new competition new grow taking point recent of

However, complex not marketing we are plays on customers limitations across sales strengths, are supply chains. recognizing do stand-alone it. This trend multi-mode, in disconnected point and to applications capitalize plays collaboration well the specific increasingly support inherent and EXopen that to multi-tier running

recently logo major EXopen's competitive We supply the our link deal and unique critical vision. closing chain key winning client's highly. scored new was space. by the planning of to the supplier very electronics success planning consumer first element planning The a highly a supply new ability deal in EXopen's a to evaluated application well-known collaboration, the But client,

commentary around I Finally, some provide to churn. want

churn While our remain healthy, contracts. large within customer retention we elevated smaller have of long metrics seen tail our

commercial priority a account-by-account retention. stabilize in implementing now top are improve to the cadence, a and of we is seeing are signs We weekly detailed progress. team's positive churn This plan and operational

the we renewals stories on These the in return our we as curve of instilling retention engagement by show renewals. with value. for had that the successful at-risk quarters, case, where last discipline bend success tripling operational upsells, client, driving long-term on of X early with result ARR the a partnerships proactive a example, the over one clients can and culture engagement downsell potential several For into

very organization months. I the that client-centric our X made that have am summary, the In last proud we the over changes way embraced growth-oriented has commercial of

the what for we improved of FY accelerating to to 'XX We growth as performance we rates and EXopen return move beyond. FY do drive and return in through foundation have a growth a to 'XX, clear expect need we double-digit laying to view to

I'll this to the At financial and a guidance. over time, turn call results for of our Marje discussion

our you, with our full fiscal then Thank quarter close year XXXX review Greg. discussion results, Today, will FY I guidance. and and 'XX a fourth of

EXopen and employees sincere dedication my this to year. want energy thanks the fiscal you've first, express to I all shown But for

my us continuing of By have clearly EXopen. and way. that know has the I can you fantastic changes potential our making move a at company's a to the along also this positive been realize we're year experience enthusiasm all tremendous While we transition, one, for team share

So thank you all.

to to high was quarter million, the Subscription fourth fiscal $XXX turning the XXXX $XXX $XXX.X million Now results. million end our in above revenue of guidance.

this While on a increased X.X% subscription represented a revenue sequentially X first decline year-over-year for the basis, in quarters. time

that bookings have on and subscription compared up quarter during improved had row As a track as of deals to also on sign Andrew large of the EXopen and closed QX. conversion deal is we first the in in noted, we are X following This we at improved several the quarters marks momentum. a growth-oriented 'XX, half positive FY changes generating made in-quarter QX,

by our note I line that revenue QX was expectations, elevated negatively would with in churn. impacted

Andrew As we're on in get confident outlined, Greg road to our return year. as we stabilizing and this through normal historical progress map we levels to made retention have churn, and

$XXX.X year revenue an and relevant undertake experience one growth EXopen's product Full million comprehensive to consistent growth. For R&D reacceleration XXXX, total in commercial performance was grew plan reflected X.X%. long-standing and now strong, a fiscal our organic close We with teams. with subscription transition M&A-focused to collaboration company with have from leadership new growth ongoing year

wide logo the holidays. business. fewer slightly, plan of hours as very the this in fiscal $XX.X down revenue our other XX.X%. and to but a service was for see fourth given a We EPS strategy due customer services quarter opportunity as Sequential space, reminder, attractive has and fourth significant revenue Professional achievable large workable million, TAM, focused decline existing new was reflecting quarter

performance QX fiscal good ended a backlog. and following QX in bookings improved higher with saw year the business the PS business Our

stronger to a foundation to broader have new a to organizational improvements These business PS the PS beyond. provide collaboration and commercial sales for our led execution on our with made during 'XX team. Overall, better FY build and leader we changes have solid

progress reversed believe in the we modest sharp decline it revenue and growth the Given that we have in business, services now FY 'XX. made, will return we've our to

fourth of a decline the X.X% year Total million, quarter revenue for the was fiscal reflecting $XXX.X over prior quarter.

For XXXX, year-over-year. decline a $XXX.X total full X.X% reflecting revenue year was of million fiscal

to in quarter was to quarter year the X.X% for gross as our year. non-GAAP prior in quarter. the efforts reflecting margin XX.X% XX.X% to gross our year gross gross In our XXXX for improvement in of fourth $XXX.X driven where profit Turning even The well a to compared performance year of revenue million, full was fiscal well XX.X% as proactive fourth full was operational prior the year subscription below PS versus potential Non-GAAP decline drive in was year-over-year. gross a margin Non-GAAP profit. higher was fiscal mix a XX.X% the margin by revenue XXXX, compared efficiency.

Turning to EBITDA.

on quarter EBITDA compared prior in XX.X% a XX.X% fourth a million Our million to on margin $XX.X was $XX.X the year margin quarter.

the billion X.X%. fiscal for XX.X% XXXX was full efficiency in million the EBITDA took and year, The XXXX, year up from the we net loss on year full loss our earlier in full net margin the operational year on Adjusted XXXX impairment XX.X%, charges EBITDA Finishing adjusted prior was included an fiscal For $XXX.X to of of as to increase $XXX.X figure compared remained fiscal up fiscal prior of million billion. was the focused $XX.X versus million commitment we that fourth profitability. quarter for full year. and fiscal XXXX $X.X goodwill $X.X reflected noncash was loss year profitability, fiscal net

cash Now turning flow. to

operating consistent metric million performance fourth generated of We $XXX.X flow, indicator as as of XXXX strong million key $XX.X important cash flow strength. respectively. adjusted an view and our quarter financial year, and During cash full the fiscal we fiscal and a

cash level fiscal year generation And cash our rising so our pleased with and conversion. we're of

strong performance, equivalents. the As costs cash we with with a cash a increase year. $XXX.X FY This this year's even result represents of fiscal impact of 'XX during year-over-year $XX.X of cash certain million million ended the nonrecurring and cash of

and QX I'd our provide our point, first At fiscal remarks fiscal thoughts on key our 'XX forecasted performance. guidance this full financial to our 'XX quarter FY and This introduce year of completes around my drivers like FY results. and

subscription representing $XXX at of range X% We in the expect X% the revenue $XXX to end. of low million FY and end 'XX a of year-over-year decline growth high at million, the

we we In of the expect the to momentum of 'XX bookings impact as move in performance terms through key with half year. build second becoming the drivers, revenue FY stronger

the decisions, exit Together, all remain now. timing fiscal customer to subscription given expect retention actions FY as but year addition, previous we taking elevated given FY forward. the the higher 'XX we're business well 'XX, In steadily position churn revenue for improve should in going trends to midyear, growth these of early we after the

revenue as to of FY the For fiscal 'XX, to compared subscription quarter. $XXX of million of to a the quarter in the we million, first range first decline representing prior expect year X.X% $XXX X.X%

rate growth with comments drivers. impacts performance consistent of QX The the earlier the FY around our is timing 'XX

FY revenue X.X% growth total 'XX, million at $XXX in of decline expect FY year-over-year low to the range million 'XX high $XXX representing of We end a to and of end. the at be within the X.X%

professional Our our business. forecast includes total revenue services

We PS mid-single-digit our improved growth over prior quarters last in business' by to back revenue FY generating the baseline. build the and PS business towards 'XX expect X bookings backlog higher on

to this gross we to the targets range underlying core 'XX is year. achieved of be roughly FY strong profit of fiscal within Overall, XX%. XX% business. expect a range our year midpoint of subscription the software last gross to reflect for The our what margin We new margin flat fundamentals

consistent FY X.X% is performance reflects reaccelerate to a last end margin represents to 'XX. we as profitability, the to end and expect do on our EBITDA decline and X.X% an work growth up and adjusted we growth. year's to profitability be $XXX within of maintain of This the at EBITDA commitment the implies low for $XXX to at of necessary Finishing of 'XX FY XX% with the This million range million. XX% high adjusted

innovation, as efficiencies in experience, sales flawless and client-focused resources on We productivity. order operational to will such in to product implementation, up continue areas for focus investment driving customer free

around generating FY importance the flow, want some we our generation expectations. strong in comments place provide cash I to 'XX cash Given

cash expect to 'XX. drivers 'XX FY as Overall, A couple we operating compared flow cash of flow consider. grow in adjusted to to FY

We expect of approximately net working collars with to interest use working FY a is drive expected modest Cash plan of required of of we that expense the interest meet in the in rate to the $XX be to repayments year. 'XX forward 'XX, cash. term of expect CapEx improvements per income our follows loan capital range that limited This that capital impact prior be to excess outlook revenue interest FY around be X% million consistent to We SOFR and curve and current of investment and $XX the $X.X assumes million. are our amortization internal forecast quarter. regarding of cash million to

Finally, to FY we to net decline our nonrecurring year-end well the cash on we as expect in fiscal for significantly Based our during FY prior leverage 'XX as costs adjusted year. 'XX 'XX year, FY for EBITDA compared below be as now cash expect guidance to generation outlook

organic EXopen point transition Xx. one In conclusion, FY to sustainable important that inflection positioned marked from 'XX double-digit to is deliver, an in opens company growth. M&A-focused an

performance the support far the long-tenured their 'XX, our growth-oriented Major FY of high new we our the strategically to we showed leadership And the software for customers engagement. and cash on plan our client-centric underlying business, We was half signs year. model. fiscal momentum of trust large, Moreover, continue place important again the to a changes our to as business talent year in company While strong the in implementing delivered and this quality we teams experience into progress industry potential, second by of in organization. the demonstrating make of us profitability our flow, revenue below growth, experienced EXopen selecting building reaccelerate to brought across these strength and clear during

a on look EXopen's FY forward as 'XX return double-digit and We for in lay successes we to strong growth. foundation to these building

until keenly so announcement Before planned, is March that comment acknowledge management and will doing assure closing, can review. team The strategic our as I not but is we a our appropriate. on in further experienced proceed plans. Meanwhile, our proceeding joining want focused you with EXopen the conducting is you that prepared to entire review forward I thank to our as employee customers I year. remarks. today, everyone fiscal are concludes executing look us for growth we That to and we our connecting and base want through serving

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

Quintero from Instructions] with first Stanley. [Operator Our Morgan question Chris comes

you EXopen And the you products great better call prioritized got around months wanted and few both with clearly But to ask board Greg, on to and Andrew be and I've churn. been gone two today. hold questions. have the have now a the to today. even I on for that

from product you meaningful So what in? your perspective, share gain maybe into and market areas to are really leaning

growth on Between any second from? new new logos? do cross-selling, to Is partners And the And hear looking growth. where the outlined, flip deemphasize? then you the helpful. there you expect are are you great question, that side, that would higher color, be the it Really Greater of come to the more to for about that SI the or tailored three measures really

to questions. hear from Great Yes. Yes. Chris you. Great

the To dream. product that families win capabilities, literally we product have products in the key X months X told across with platform my team salesperson's we the of organization I've and is the have can industries. topic, this on now I've this that with our and for recruiting market, what And to each company. that the that of people the each into take breadth at So is competitiveness been a multiple our first product the we I'm category

provider, being vision the products end-to-end an this we chain have back supply to it have we And of and up.

with go proven toe, I And providers can and go in toe and that the we so we've win. it's toe my an incredibly solution it. made but marketable we remarks point best to the opening can in to platform, marketplace toe

them. every to of we're that, and strength drive product quite each category So frankly, growth with has able

and our think in core And to X helping are with a of the significant deeper starting partners. we're ramped up pipeline about First And see the established SI over with partnerships, all, we've really a momentum if logos. those you vectors significant new improvement relationship growth around drive last months and

to new -- improvements that contribute effective. been most and of is driving will but partnerships certainly So the X clearly the were driving them growth has SI all logos

The Hotchkiss with Adam next Goldman question comes Sachs. from

Greg, you think I'm about curious to for Great Andrew and business. the how normalized the path churn

can if here with and you structural remediate that You a tail year of think just gross of a was been are you more exited more more the proactive? through being challenging historically. on you something renewal that full challenges at-risk execution? in you think Or just some is bit Is improve mentioned a anything ways the there's Or this of being that function getting think where business XX% there the business? you it on was it's that immediate can makes accounts longer before. curious just of to these I'm fully this cycle retention, I if through based missing the the

Yes.

I think the answer actually. straightforward, is pretty

Greg being organization we But retention of for or as churn lower Maureen we in get cycle, I become about become enterprise the for client-centric talked the client-centric. intro, right, it, said churn, are just I churn. or rates my some that call -- long-tail of client-centric need to the a and think to about the than ahead about basically the talked enterprise it's

many, I I'd guess, I'd just at managing and there's look normally, about it situations, There's many, nothing so say. not systemic. say, more a there's many just And it is

very a way. Greg and go-to-market functions tailored way really has support question help of frankly, the structuring at in to to cohorts we care for are customer us terms also should that talked approach. add the the churn your quite -- And all way organization, both tail a in versus well. -- long long the a the segmenting in and tail different enterprise to Just effective that reduce as to the look and it's about

on the Greg, talent of then, shift and That's Maria, what Okay. Greg here? really useful. be sales as of to curious achieving resource guidance go-to-market function and sales had about history think to looked I'm of And been how relative part capacity as implemented and you SI And and mentioned what some given has you in the Is acquisition side just do attrition and the the of the investment. changes changes this targeted retention you've I'd some these all like a then, this have around reallocation investment teams curious

a Yes. We sales. in have do capacity Adam. Yes. problem essentially Thanks, not

number have attainment necessary getting six quota-carrying growth. reasonable drive level sustain a long-term of to we in that lacked We sellers the we'll a and productivity productivity issue the

And so sales clear standards heavily that's measuring performance weekly very on and a those why set talent, in we've We've invested organization obviously and we've sales basis. the enablement. for standards top-graded

that is products sellers you salespeople, highly in -- sales the my it's opening and we that I've capacity do right capacity yes, specialized the reallocating piece positioning to when in so more invest need product here in I shifting, heard is And that we months focus to both are experienced remarks, the think we X been with other the on new that value. to what engaged I've cross-sell logo bring are with not

tend and a those than You in talk his more lot about of attention we we're value positioning heard the remarks, business a Andrew get lot to not. win capabilities, quantifiable when

focused. where And so that's we're

next with The Taylor UBS. from is question McGinnis

the on first productivity one Maybe sales the just piece. is

changes you it's Can ramp what could trended recently. recently. And all made some imagine time an take have to the sales of would force. just So given guys the idea that I sales more you going give has to productivity maybe you us

potential expect materialize more So those... could like uptick that when stability do and you a see to productivity

data the driven. was think, is that that data Yes, thanks the Yes. for Taylor, very look, question. execution-focused companies model implemented previous was operating as twp I did that an I at

got tremendous visibility measuring that into we're metrics business. And we've the so the

at right is components both and QX in now, in in-quarter and in-quarter our And hard conversion improvements conversion. number rates. seen so if I'm two we've key one, And super QX driving you that the measurable look

is And of been Clearly, pipeline the the on second all, component pipeline. is my over always philosophy The has quality pipeline. important of be, first quantity but quality it should first. sufficiency measured

that a saw So we been scrubbing to, with the accelerate initiatives in out we've pipeline. significant a we went to able pipeline partnership decline and process, pipeline marketing we rolled our through extent. through a And certain

pipeline. So but highly pipeline it's we're seeing momentum in inspected again,

notion improve. continue is rates that will the to conversion So our

talked Great. decline But look guide, the implies on question will back rev sequential after second XQ? guys the what in you tied a sequential at it And And just be XQ about. partly just then if improvements you said. my some that subscription the of is a this maybe increase I to of

touch and the throughout maybe acceleration an just softness weakness a you some at it as that, can follow-up, driving in macro, of then what's the on guide, so productivity that's whether So the look the sales we if year implies year. full rev

in some . that color level the churn that's embedded can So of on guide? just NRR provide you

Yes, the question. Taylor, for thanks

over length place management year and QX just than elevated it. Andrew during customer remarks, put it's long at how reduce decisions So our prepared here, as that already more advance. Greg remains to again, these understand are in a very, that's made taking But really impacting given as we clear just due practices the made we've decisions a quarter and very QX. to the and in issues, ago, the mentioned what's discussed churn

of when the they're us And underlying that's about, our some the plan, confidence that's the you conversion revenue. really and giving to of our show But that we when And on accounts growth some it specifically vending, conversion depending rates, in and metrics the and guidance. in gain the up quarter we're look really takes different and we've building near churn execution rates for reacceleration churn improved [ really blocks trajectory really what time impacted at even the the as that you're growth, what's executing terms talked really what's seeing progress already in you just in overall ], pipeline in the guidance. traction think to on to about it

Loop Schappel Capital Up next, with Mark Markets. have we

sales just address year? some discuss you the the And plans in that I color with an the to the pace update of the you the the Greg, churn appreciate front, the organization. sales Could issue low on months. just turnover to turnover respect past XX have sales company at been the keeping has quarter? on XX over and coming last seen that you've maybe over

over the We've last thanks months here. Mark, question. Yes. issues for the not been X seen since retention issue I've attrition

darling rehired point back in opportunity they In the modern And people of several greater because come kind fact, folks they of see some pastures. been and to organization the hip to really to providers solution from happening market. it's those see left the see we've come the what's encouraging that

high top standards. effectively are, outside sales So standards have attrition like the improving set quality any our But seen of organization managed organization, performance have of grading. through overall very any we not we and now normal we sales the industry so we are

an product to global building Andrew, groups from quarter? interest trade question, groups, then the Was TMS demand sensing. on respect what And see various you Great. during product categories it the or with most earlier the did customers or like

Yes.

really we churn, when say be don't look it portfolio of would I like products, our or the a products. on across variation material the at I whether sales So see

at all So they're equally demand. in very carefully. it We looked

take demand client we or where lot -- in that we not continue a the think a a have lot capacity, that I approach before. for that's and we're solutions see headed approach, and we're heading to broad of a of we

Bennett Chad from comes Hallum. with. Craig question Next

I've network and quarters point just the thinking in on growth think in you in -- last there? the what your curious, EXopen and you're don't curious heard couple bullet Network be had think of of about that I a potentially release how I about the just I'm monetizing could opportunity press the

Yes.

that have have distinctive answer capabilities, asked, we content you a or that than I'll very is which broader am live to I world. think a in you it I -- you little open when live a believer competition-based that

expect solution. . to through can't want your distinctive every you to content your act client So

end be Paula through by network, And front we have to somebody we're to else now open business. the value to to multichannel that them so GR with dissimilar not as move us and content, global ] be get having we in partner And I business us we sold strategy their to think I trade time that and our the we all fact if or about easy, the long strategy as their talk the content. resident SI sold we forward, grow front to distinctive business help the strategics where our going grow is end [ that sense the as it the that having

leverage their our the I situations they there It value. the orawhatever can business to content, are the through And content do. end of as grow really front properly to which any it's where compensated matter doesn't if want the for bulk or whether as long that we're is

or cross-sell/upsell Are couple there way it. the product a necessarily standpoint. then just on Got question asking not maybe of is seeing you're early And products or naturally in a a or different frequently, a X or think the for maybe pipeline X just are X maybe of from standpoint, products, just of I or early should fit prior demand sold maybe the you're together? point suites X demand rebuild more that products cross the sold that be and seeing up

what noticed, supplier capabilities, very there question, as Chad. the our Yes. of joined market. are distinctive for Thanks I the in for a was somewhat the when supplier And collaboration -- Look, stand-alone execution market planning hesitation know, deals. multi-tier company compete super we've fuel from the multi-tier really force the what that positioning and was started go the it that perspective of combination on well. to head-to-head responded sales planning when a And we realized clear we you

to taking huge we've focus that market. So made on a

about global the from as transportation the just think other have our capability think perspective, and trade you I system. logistics is management we piece a

If PMS doesn't We're combination trade to a trade, taking global market. seeing conversely global doesn't a customer solutions unique customer TMS market global obviously, that those and have opportunity cross-sell. to trade the taking have

sort of a on we through and product focusing motion products, have to all $X really people have instead as accountable analysis grow path making this and we holding utilize And it Andrew products Yes. space especially detailed terms which kind We team product of close plan cooperation to $X well a our about whitespace reactivate billion that by portfolio had billion a back just very undertook product by our company cross-sell and finance. said, and now operationalizing with what of really are that the how that clear of wide very, ties talked white now is sort of the internally. few industry, the commercial we analysis and as in for really a netified through to

America. with is Bank Next Andrew Obin of

Ridley-Lane Andrew. is This on David for

for Jay company today? Blue the the gross the XX%. as Is retention open it that is Before acquisition, was goal to right

working that we to table to line just and would have is vision. felt like his start on around. add previously that. driver and Andrew and really getting and be don't is I That we were. stated, the well some the retention for building I to Andrew maybe churn and it potential has would the forward. retention. But by our well is by to the top say, goal get we our will specific I it's plans, important to operationalizing brought committed throughout have would -- we say no And I again, how to to And or it where buy growth all accountability above. But going back historically I product, very, to that think would say that the think very is on client-centric It's metrics below very churn organization the were anything we get growth. color obviously, a about we're mindset can really what as cohort, But detailed back bookings churn where as double-digit and getting by reducing guidance, overall

ever Yes. mean, clients want and only they reason should lot do if having disappear. would add get they of a spent look, churn Yes. I is the at looking mindset logical thing they only churn bored, no my time the either I that to is

under the own rest is control. our all. That's Now

disappeared of terms worry, it. bought. in said means in number led I years they when basically, that what were or a for lost seen that's So company I know. we I they [indiscernible]. don't I a that I've X

kind then very to as get be continuing in expecting the half in follow-up, of worse you to be churn second, last then full seeing you improving quick with through you your guess, are a about Got and 'XX? elevated year it. on went first were year churn . given as churn the And commentary fiscal I because similar

the question. for you Thank

As you looking to that we but specifically think to when year. about we lower guide to or it, directionally, would year-over-year how churn you're say at don't know, this is I report it churn plan

you. Thank

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