E2open Parent (ETWO) 10 Jul 242025 Q1 Earnings call transcript

Greetings. Welcome to the E2open Fiscal First Quarter 2025 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.

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

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

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

review today's call. on Dusty, highlights. during Thank that and our quarter you, finally, they EXopen's call you first some will open FY and outlook. potential thoughts reiterate my with results then we our on QX make sustainable fiscal full optimistic the thanks update our commercial commentary so and for I our mean provide me Marje accomplishments and about to will growth. for key for forward. begin questions. I'd on Then I'll to Greg quarter our factors ask the what the up first And like 'XX for joining everyone year strong, EXopen moving will to key

supply-related for comprehensive external environment, applications supply in is they purpose-built achieve and complex into of supply predictable orchestrate chains challenges. all and a outcomes combining to today's data software of complex for global chain volatile web to today's platform management aspects their companies ability visibility most need the relationships. EXopen's networks, First, activities and

and supply a network-centric, suite production to the chain, provides Our of delivery. from unified optimizing digital applications of tools managing for end-to-end set AI-enabled

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prediction the new mindset. provides as We insights into real-time us process applications a tools, things, and key the other supporting risk. And corporate-wide this management client is new satisfaction have a of retention introduced algorithm, monitor to among performance and indicators which risk fundamentally client such usage,

with downside and to for experienced effectively. Overall, to approaching finding included performance strategic margin number strengthen client-centric approach internal pleased no ways very a important renewals because executed came of client consistently clear larger material, the relationships in in and reductions and looking and clients. Moreover, have significant we into assessed now and client. confident of our view QX every scored over ARR this the several foundation with am new our forward-looking of accounts we FY am a next second through in significant specific strong reviewed securing of churn as half clients. sources renewal followed even for the by by report ahead individually improvement long the sequential the renewal and sight of renewal the of together year. work the we threshold half achieving in and tail This of that year year-over-year to risk retention each opportunity laying forward, for deliverable a meaningful QX, targets account-by-account line first 'XX by small surprises. I are ARR expand a new every We have an improvement scheduled we and quarter into of our in value this I

reduction so our this quarterly more normal a represented quarter beginning next and the efforts we on to all, of our level have renewals. And piece to I that early I much of of baseline the standard will EXopen's of we with have now FY fully retain review process am historical at of satisfaction renewals QX to evaluation risk return do a by line that the and we of and For part that XX is actively highly targets, that beneficial to This any of months EXopen's on the challenges, levels. are is execute made on proud we to turned EXopen ways possible. rate Based assessed mutually churn, disciplined first at confident retention ensure am in peak client with engaged business of the be run operating many schedule client year, fiscal cadence as we 'XX will colleagues corner regularly while still our these positive to developments, rolling-forward on churn work them.

metrics that and has that negative now growth it this move had major more the to Moreover, the Marje are right behind will provide as we also aspects moving forward. and development, impact a other I approach a our some financial direction, retention in to more our X look detail. us expansion client our in and pipeline revenue performance, time provide discuss activities few last such a place comments want will Given of Greg on QX tailwind disciplined of quarters, forward as we to to over which the allocating issue management performance is putting and my milestone bookings. I for growth-related have in on strategic

for delivering of closures in results were relatively the us the delays revenue but quarter subscription from upside. solid, timing deal prevented Our

pipeline delays deals client-specific the for and late-stage of of a ended due out we QX in slipping approval scheduled close, processes. quarter Although up the quarter large some to entered significant deals decision with

made in already June progress have in deals. We delayed closing those significant

year-to-date perspective, our are our internal we and getting for quickly up on bookings with remain caught So track plan from full a year targets.

we QX, timing, results. While deal our results to EXopen we in the backlog, quarter. we finish entering we professional to quarterly well services of up shortfalls year a and 'XX bookings and services much changes as experienced QX to clients. In more FY rate, are importantly, have already timing a positioned the Having are into professional vary positive made at client-centric through growth made as the material after yielding higher some accelerate business, at for a due sometimes can work strongly with move committed traction we healthy and base with our accelerate unbilled largely the gaining chose

now the interoperability, Although existing to leadership, dividends rebalance and growth. And solutions make we Under prospects PS revenues Moreover, future subsequent our know and activity delayed required look a is key right work. the clients software. realization working EXopen is satisfaction normalize are portfolio and us best our clients from their focused high in value of solutions organization ensure into redirect high as high-value to some for to of promoters in into expect backlog, PS best-in-class we evolutions PS resources out to billable PS investments I this get which are for through client new some best from itself. existing future, net away the will clients supply solutions. sustainable us we chain quarters confident that their we strong revenue the client on sell ultimately satisfaction the improvements as importantly, and they to these make. generating new our for delivering pay value reference The With am of with turning QX now client client our that in trade-off were to investments toward in

I Before over comments. would to the like turn additional X Greg, call I make to

the the review be engaged are announced go-to-market is its in on We all activities. now The provide the review in forward comment and soon update company. And review while not running an for on strategic to ask our our review express the appropriate. With sharing putting that, to Greg to today, second, to look outcome also in completion as process shareholders many want strategic customers, growth also taking anticipate and our work as with and strong employees to First, path management colleagues for for my a my their their and our future back support I company team to all the thanks of EXopen and sincere review our while on that the we the progressing, questions business on and on March. EXopen the I I future. to of we near will want building fully a contributions great will

Andrew. foundation you, XX to Thank EXopen hard the organization strong, sustainable commercial working ago, for generating Since months been growth. I our joined has lay

made have lead on fronts. functions. into brought progress our tangible We to experienced We've commercial critical most company multiple the leaders

aspects are integrated, to growth we aligned development immediate with sales we our importantly, our pipeline we term, pipeline long-term culture the and are front-end else, function disciplined of are of organizational EXopen's our mutually core and all quarter. sum, sales opportunities. with implementations, values, for organization We the of our cadence. After growth and for value most our beneficial marketing pipeline relationships. In one managing to quickly and just strategy clients now marketing realigned are that proposition, not not scrubbing moving building from all into fully building a operational commercial our the teams our And long above delighting rebuilding our capabilities software high-quality deals have

do, have have we and full the advantage very to tools need organization of attractive still be organization. high-performing have that market occupies. a we We the basic EXopen I'm in encouraged growth we generated While now work the momentum the to sales commercial take by

new far value marketplace logo second their we and distinct Clients that in most provide customers. demonstrating place the to 'XX, solutions cross-sell of us winning complex FY and by blue-chip opportunities As strength in during their for continue with our did clients the 'XX, FY our in half important to supply chain can solve trust the are challenges. so we

our automate regulatory to sanctions continuing transportation management reduce broad X-figure across software to We costs in wins transportation increasingly provide management. With and robust flexibility documentation, trade and successfully are time. strategic are seeing areas to shipping compliance demand we global recent ARR including respond disruptions that the of for applications complexity, in rise, and real portfolio, risk risks competing customs

to such have respond these long in we demand broad customer collaboration, tailwind also mapping planning to for I across term and ARR in fully are as beyond. be areas plan solution new We the to products success functionality where having for our Supplier product of bookings resilient launched to Discovery over supplier our a 'XX traceability. and and our and needs trends growing the to innovative supplier grow expect and portfolio and FY provide Network

Specifically was clients number solutions in extended of frames. their deals pushed healthy, EXopen time QX, while a demand of for material large the quarter as out decision

deals full nearly result, productive subscription into these bookings quarter, targets. despite pipeline deals. to already say revenue June, have that a had positioned meet planned, we received heading month well of our just half pleased QX expected. of we a closed strong a and are into lighter and over QX, very a we I'm than year benefit delayed We As to came the in an we our from new than less in-quarter

culture On has immersed of understands needs flywheel integrating growth keenly Mark focused with implementations, new of in and EXopen. fundamentals satisfaction client and unlocking its our success the professional are and benefits side to operations and that organic business, services self-reinforcing our the clients. key group Nordick, a that of leader, on himself of are cross-sell the our flawless for Mark is better

to investments and growth to value positioning clear The we with X QX first relationships made opportunities. benefits, high so. client address opportunities Mark's tangible including the FY already realization. in securing to investments doing large key to the ratably services opportunities these of into retention use risks we professional key early client the impact from table delivered capture During for Rather renewals invest ROI and months resources these clients improving job, we taking upside that QX relationships, on client have our near-term important our off improve cross-sell client more across key in identified than decided 'XX, accelerate positive

$XX these As value the co-investing strategic of technology one client just subscription upgrade contract of multiyear example a QX. platform we during highly by secured legacy the relationship, a an investments, growth-oriented renewal of total million client's in

from the margin our from the resources investments accelerating in existing these clients future to of backlog, first quarter the PS both of investing PS our required away and While billable reallocate in which the is decision PS growth into quarter. work us delayed right execution a gross perspective, impacted clearly revenue and

back meet we we in our shape company the we to and opportunity have we bookings well mode, turn takes in future subscription of temporary QX full in a that year, in through delight positive remain commercial And gain flexible taking QX do investments should momentum clients investment move margin support plan. And is quickly of FY in second the and In approach, possible. QX the for PS put into path QX, we will revenue client year, as As materially a mandate year ROI detailed the that growth. bookings encountered volume and half. to EXopen's net are the are and investment to high full we road 'XX but while experienced conclusion, confident that the to we the delays, clear some we client in promoters importantly, executed us and the the value position to organization map closing provide with across during them a will accelerate to while and we whatever took it satisfaction EXopen, on PS now impact QX, are in will work growth decline commercial quickly clients as execution of that normalize. In our and a gap client we good to our sustainable

to track 'XX, through as results and move of today, to we over FY a improvements together a bookings accelerate churn the we continued drive I'll us on for Marje time, our financial of turn position discussion this which and should for stronger As 'XX. At call are FY guidance.

QX and on $XXX comment million million, to our Today, Greg. XXXX quarter midpoint you, the first first the and at our but fiscal guidance. X.X% was quarter of fiscal year-over-year year decline I results Subscription $XXX of a full revenue our guidance. $XXX.X Thank will million in review

we longer where as closed customers deals mentioned, some large upside QX, new revenue limited was to business. took during important delays, Although make decisions Greg by many about deal

of already deals slipped have several QX. closed We the in

able the renewals, we In we're our complete the first of addition, during quarter, and retention. to managed quarter proactively ahead targets for internal

move retention first half. Professional As we in $XX.X decline year-over-year the plan, improvement accelerate in revenue and improve our fiscal both of continue our we a reflecting execute XX.X%. bookings further million, metrics in second to year as we our the quarter services the the growth with to still momentum fiscal and expect through other to was fastest

and driven renewals prioritized by nonbillable ensuring the delighting on over our resources weaker Greg ensure during expectations. client and work. which By forward to projects reallocation we bringing supporting Andrew PS high-quality billable doing by in are time, mentioned, investments As investments the quarter, the so, client needed customers, of and budget implementations revenues exceed on to were invested our

We will prior needed, that forward going the year. invest 'XX billable to PS and clients continue client flat work to will be revenue we as satisfaction anticipate in roughly our that for focus normalize our FY but mix and and on will nonbillable of

attached was QX, fiscal that were business through backlog revenue as a work a continue for over X.X% year, fiscal the quarter first quarter. of of and support to $XXX.X the healthy close revenue the Our of delayed backlog. to additional year pick has should PS services business Total generation we the our decline prior remainder million, from deals up

the services gross reflecting QX, smaller million, professional mainly compared of flowed line. a gross to in The extent, the to the hours Turning gross slight the first was was X.X% XXXX, in fiscal to decrease quarter profit. a the consolidated year In XX.X% decline of PS gross unbilled non-GAAP due quarter was in Non-GAAP prior margin $XXX.X XX.X% year-over-year. and to margin profit gross first acceleration which impacted margin quarter. through, into margin on our

EBITDA. to Turning

$XX.X as EBITDA XX.X% XX.X% Our margin down partially investments quarter revenues by was Adjusted as client year-over-year to well lower million, due in first to the during the offset mentioned a margin, $XX.X compared earlier, a and year quarter similar adjusted quarter. efficiencies. was prior spend million the EBITDA

EBITDA adjusted This on temporarily products. our During reinvest margin continued our despite approach motion to with prior and reflects focus strong management EBITDA and revenues, keen softer our our consistent our performance driving back-office efficiencies margins QX, in consistent remained disciplined cost and go-to-market year. clients,

Our non-GAAP year-over-year G&A driven to our spend across HR, expenses by lower departments, as corporate support facilities in layers down teams and due functions. XX% headcount QX we have consolidated were management across mainly optimized finance efficiencies and

streamline our estate and to continued also We footprint. global facilities real

to forward, reduce driving ways expect our and costs processes. efficiencies find automation G&A We and legal accounting, going additional across finance, HR to

in QX spend Our non-GAAP was sales flat year-over-year. and marketing

organization where invest However, we're in consolidated overhead having commercial in leaders our finally, we in have and built marketing into of significantly area product are and marketing team, capacity. And recent additions. brought launches as our reinvesting continuing by organization, sales reducing we to several go-to-market evidenced product an announcements our functionality and dollars new those development

that to our down best-in-class additional investments in offshoring changes headcount holding a Our year-over-year allowing continued spend find and non-GAAP us result products. of R&D strategy nearly R&D process while is as savings has and flat allowed successful

sequentially generated and our $XX.X This in focus million a optimize metric cash operating is performance positive cash result levers, higher our several processes. efforts flow. flow collections to accounts and generation cash Now which adjusted focused including reflects key continued turning both strong cash receivable our year-over-year. We as on of to QX,

to million $XXX.X factors, quarter to expect and the note of that strong annual sequentially. million for and equivalents, ended of of would flow million continue lowest $XX.X seasonal performance our cash I year full $XX.X cash increase still We year. We cash of cash payment QX with an June. year-over-year QX typically ahead, is including generation various our during the bonus due Looking cash

underlying results. my like cash second and financial fiscal At to discussion. strong of our and full is of Continued to model our business the completes remarks performance I'd indicator important on an this flexibility. This of evidence strength fiscal our strength and is point, financial QX further quarter our year turn guidance

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

QX close or that slipped closed guidance to QX. after the beginning the QX's revenue Our are of impact subscription incorporates of deals expected

expect outlook outlook As deals discussed timing the year our these earlier, on within first has modest the fiscal delays the for we full as our to are impact half. bookings a close having not but revenue year, changed

XXXX. 'XX XX, range $XXX FY we provided expect guidance in revenue the Regarding guidance, million. still $XXX are reaffirming full FY million We April our 'XX subscription year on of to

expect we momentum 'XX the drivers, In revenue XX%. year. We to gross FY stronger the expect of move of to impact expect still to terms We XX% second still total 'XX becoming we 'XX, to still million. build to the FY within the through FY half $XXX be key the of performance bookings in $XXX revenue range with as range be profit within million of margin

still 'XX. million to expect have and are profitability XX% commitment $XXX strong for FY what 'XX which adjusted XX% within achieved represents of growth. we of with FY to adjusted metrics million, These we as be profitability to reaccelerate reflect $XXX 'XX also an EBITDA FY range margin consistent We the EBITDA our maintain to in

expect commentary as the cash last operating 'XX are cash discussed flow same still remain gave last quarter. adjusted we the flow. growing following to We around 'XX, reaffirming also FY the cash on FY compared 'XX FY to We and call we flow as drivers quarter's earnings

the the same of $XX collars and last that the expected of range to working described rate interest interest to based improvements capital plan on our expect in consistent use be We working to prior of in we and FY net year. impact of drive assumptions capital expect cash. Cash 'XX a be approximately quarter. 'XX, be is CapEx modest to X% revenue interest expense million with million to FY income $XX We of

FY nonrecurring expect decline as prior cash 'XX in year. costs to significantly compared to We

FY outlook year-end generation year, to for EXopen fiscal QX, adjusted guidance our turned on to the quarter, we Xx. In leverage a cash our based 'XX in path. corner made net the EBITDA in as believe conclusion, the well as fiscal during 'XX successfully below that revenue for during FY work progress issues Finally, our recent be we we first growth we on that continued growth. back have our the notably, Andrew put Most on as retention sustainable mentioned, expect hurt

was While as the full in limited to timing as to investments revenue due accelerate well PS delayed we're FY QX on to in positioned move client as upside our of meet revenue the guidance relationships, several through growth deals 'XX. and still bookings large subscription well nonbillable of targets track year we and acceleration

we our look cash EBITDA to the adjusted through the the we flow, concludes everyone do our us and we and for fundamentals and to Q&A prepared open thank of move fiscal session. margins continuing our demonstrating strong underlying so, joining forward Operator, expect business line the I maintain model. That year. as dialogue begin again today, want attractive As to we remarks. please

with [Operator question Instructions] comes from Adam Hotchkiss Sachs. Our first Goldman

the gives start, confidence the of commitments the you getting I'm of throughout scrubbing with confidence specifics just done on this on of aggressively improvement on the relative than and Is what just specifics soft can you to gives ahead there year. curious, your well give just in printed you've you first to sort on and and churn out quarter past? result going renewals, a in or acceleration improvement you what more you more engaging Just what would useful. be pipeline the any if

This is Andrew.

over in series many So managers workshops we client account in as, been over, and the are these assessed accounts client cases, the individually XXX-plus both threshold pretty every what where well of with well gives reviewed have we have have is confidence low commitments. a us And a that as clients. whatever, teams

conjunction that, for And where account-by-account our renewals and new issue with to statistics. a time, at and is -- there's we an one so have process in used renewals, do managing them that's our effectively, the

other have operational We of measures effectiveness.

evaluation And us churned have a we over we had we and looked very the leading churn And and the model, that XXX to churn, of at to understand so then the that the place. team. really indicators every account all 'XX proactive from all drivers and of where led 'XX, contracts with what each were used

for or to example, rule is, So XX% renewal, we up more know basically, the what's something and are renew if confident going not above that or know -- at we you the price, if that's coming necessary. then it we teams where of about list. with contacts account the goes deep and on are discussions customer we analytics, And do the have we all then outside the for

are takes was Okay, a away I did of waiting there? takes incredibly and maybe Andrew. services. about have and about That then just professional Could an those on the reallocation helpful. satisfaction were on puts the the who from pushing how Or you puts on sort for And Does decision? resource just wanted backlog that? quick offsetting and more talk out what follow-up you some of that customers even impact this PS think around

of got client on these said end, is I management, been calls, in churn what script, my as priority. satisfaction retention, #X number that Let me see In if -- a the discussed -- as priority, right, a has top I was right. the

So there that at investments account were with situations were risk. making putting a to selected the solved and dissatisfaction issues set of causing where clients those additional --

that were obviously And but in the way and so industry going forward to is what in other effectively call implementation those clients a to pull was called of unbilled, effectively -- affect clients. not invest there so timing any made in the our we of our

on with not led were completely to, a style There on pretty was existing the the just no in change. satisfied cases, that some and was clients. positive there some solution renewals impact So material negative clients whole and impact their

question from with next comes Quintero Stanley. The Chris Morgan

of QX deal closure already is Great those thoughts half year. closed think the year? to just curious in the was almost about always weak the delays continue to for more I delays. the a wanted given a ask will to it Or your do but quarter? June, Do you these expectation see rest hear seasonally of and of impact, think you throughout onetime

it's we don't cycle. to focus macro-related Thanks look, And But from issues. Greg. to do question. you. deal we Chris, Great what accelerating contributors on focus hear on are for key what the the the are

create us issue continuing set on just second directly those really the we're that be were our executive super able seen engagement One of is effectively, where saw accelerate level primarily to of over X issue every second is to the driving at that the really overall deal to to satisfied, as see those mentioned to my with it, quarters, you the and forward. pleased level we we've base. And ensuring ensuring at business going drive broader the effectively, when do focusing and we opening this cycles. deals massive just velocity at user The customer level, pipeline that in with, customers half. drive a team associated opportunities of I areas of improvements. a we're in remarks, June, and convert In clients providing. technology our we the able quantifiable value we engagement deal and incredibly they're have the that the I'm to is last And our focus what significant for well, don't and expect cases serving with on maniacally on our to in heavily customers many we've primary focused

of resulted I about that work to And a those on results into what are detail more maybe maybe want pro Can customers? some that follow nonbillable some up of for that services you specific positive from examples of super go you work? Got it. helpful, bit that little the That's the change. Greg. And did what

Yes.

obviously and critically -- long-term the projects, -- that set with example it have a situations year large professional significant and broad have added are delays we a got products X QX, know, the we there an got you that of in implementation resources had mix. services resulted Europe those a a We as funded situations an allocation we business to well ensure we've projects to or extension a additional essentially that into in their is time good what their were we we we capabilities that was in implementations. have It our solution projects in and is time, the delivered client of obviously, our that we in that certain have on And expecting, accelerated important. And frame contract. where implemented we are making the customers noticed and sure outcome. They resource with the

As opening a client. in services the order a large that the runway to a mentioned long-term we've client free in I provided we upgrade where ensure remarks, very with very, we large had got very for

forward just that we in that And point to success significant retention the we single the addressing priority important so that issues. QX we're us, I is remarks think ensure our opening and I pulled we the for the making year in that most we made throughout were client made the planned investments that

comes question Taylor with next from The UBS. McGinnis

is one just delays, more the little there. cause of a love bit first The the get color deal in terms of to I'd

into the like have potentially do second So sales a disruption give you it any that trajectory we and that to that as any deal decline there? made? And the the weighing changes parlay decisions? about color Was billings those there guys was can to year on the subscription from you part XQ think question, delays then of might related throughout you additional as macro growth X%, more these compared how of think

delays. think delays. deal to Yes. I'll don't cause there's on systemic one the I take root the deal

involve have for because you sudden have units I executives like or making you think cycles decisions. multiple make, of do multiple the conversations who you The clients more the the more strategic cycles their business we questions. all involve

value-oriented become our more also slightly odd our doesn't with sales quarter mix in as process, -- multiproduct run we more sales And in you world. the we general as process, calendar inevitably our so into become

isn't a coverage there change. there's urgency deal in the and a that they nothing to right, behavior sales done. have, a from a But in like and February close May So might systemic get be that sales quarter

a a just we have we winning of point to stage, It's a single number the in if. The think either and have me and not them that won get of them. x -- substantial of have QX deals other are deep statistic we that from conversations we just have where the to having lost is that been so they're pushed we're late that have which not matter says the when, -- one, once has I we been a we QX, portion, positive

Yes.

on terms Taylor, Just in billings. question to add, your of

at there's billings. look you when in So our billings, seasonality

because the FY trajectory is improve down year, our is due as in our help of in bookings about rest discussed, the QX you we've QX revenues with the you decline mainly with know. billings the growth So consistent half, But to we decline half seasonality second trends. Obviously, second that of year-over-year billings with half, is quarter, expect versus as churn is the typically and second weakest, to factors 'XX our the the seasonality. also prior QX of as in the think that strongest sequential in historical and along year-over-year. should billings

XQ to Perfect. and in I that deals and And you the start XQ. look implies churn pushed like into subscription still you it it when talked about question then quarter-over-quarter a so my But decline. is, last were XQ, are bookings at sounds improve revenue the from expecting guide, to

are you just those assumptions a I maybe that the us can conservatism? guess Is deals it what delayed comments? Is that just get further? risk driving there the So square that reflects guide? additional help some guide

Yes, absolutely.

churn of you mentioned delays, impacted the in so is that. in of from revenue the prepared and lag QX of indicator well of should acceleration So So really kind there, and deal of impact second churn, expect in from the build a the then as to QX, guidance sort remarks the sort QX sort the and right? the a up impact as my see on by peak saw of half bookings, bookings And we of sort impact. is churn I have build as a we catch right, the lagging always improve

Mark [Operator Capital. Instructions] with comes The Schappel Loop next question from

don't an around issue the you in expect that to an noted deal deals, be forward. Greg, earlier slipped going the question delays to you response

a around execution that. you if internal slipped additional concern? color than an provide you wondering around deals can this gives you issue additional what just could just Just rather confidence. Maybe of just more Was macro color of provide were because it

know, made well broadening in on pretty and as Mark, deals the organization you our pipeline, in-quarter the and deals terms on deals. refocused in just significant we've of midsized structure large as our our a and as Look, execution changes focus both Yes. overall on

And organization. so we're making significant the progress. We integrated the into marketing commercial organization

the days on dramatically The scrubbed, out XX board, first pipeline. cleaned we've

of And effective higher so were that added a areas industry what really the have rate solutions and win incredibly opportunities and on. high-quality in back focused we've the the is

set terms So with we the the often. focusing types that more tremendous in the and said before, renewals opportunities and a accounts making clients highly relationships we're I broader projects to on momentum drive in penetration, and team, engagement And our within their customers both sure of broader satisfied engaged on they're win on existing there. engaging we're cross-sell of of our as a just of seeing

to continue as little -- to more our And I so of if work closing going the that we validates we you have win deals maybe are deals, bit these take we're I June longer, able have and again, pipeline, to a what on. what extend our to they that breadth mentioned of about saw kind confidence do broaden and the

X just the in sales investment rates? EBITDA go low growth now, the execution to then, That's months Andrew, been almost about through market cycle to Do closer with kind another range. hovering believe bring you've you with up helpful. Great. firm to And mid-XX% the of to company margins needs

No.

about think it differently. I

where I company culture we at at of we think client do versus us about do. is the of of the of the what the center a what center the reorientation

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

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And then clarify. to I just Good. wanted

it a quarters? a Or churn? in the is through of step-down, half. second normalized of year you So that the here peak expect but step a by to saying X sort churn we churn the had pronounced Are I there quarter of go kind is levels you returning level more was the I thought in or first X down more fiscal in wrong, nonlinear may have of of step-down, I as the beginning second 'XX. kind there guess of it's ratable next on half still

the show, will that right? You a unpredictable XXX-plus pretty What early Hard pretty is account-by-account that's say step-down specific. see on the linear can't material. each But of But later. then be it next a each more Companies side facts on the situations that what other, on. an that based right? assessment review, ones, of things so you in that in and the the just little causes material drive than and buy to a big quarters, be the step-down X should should I everything, predict on the based with bit

add said, don't say peak we just don't obviously, as churn. we but this we expect guide to that, churn and would QX, to it, report -- I to

big That's also subscription It's expect a to churn QX, expectation second of to And getting growth the accelerating We our obviously. of see normalized the to revenue improvement. half, back contributor by sort balance reduction we levels. as better results well build, of in the QX confidence confidence what's but the coming expected down the really our underlying for of the where year. seeing bookings and than sit as now is in churn

Okay.

further questions in no have queue. We

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