FiscalNote (NOTE) 9 Aug 232023 Q2 Earnings call transcript

Good morning, ladies and gentlemen, my name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the FiscalNote Second Quarter 2023 Earnings Conference Call. Today’s conference is being recorded and all lines have been placed on mute to prevent any background noise. [Operator Instructions]

Thank you, and I will now turn the conference over to Sara Buda, Vice President of Investor Relations.

begin. may You

to Welcome QX earnings XXXX Hi, the call. everyone. FiscalNote

These we During statements statements laws. to guarantees a may uncertainties. are related risks but call, future under are performance, of to securities variety forward-looking certain subject are make this rather not that our federal and of statements business

Our actual from materially in reflected results expectations could differ statements. any forward-looking

available affect risks on our and as of in discussion important important other a our system and SEC SEC’s factors release. the to the material filings results, EDGAR our actual well that risks For please as discussed refer could and earnings factors website today’s the other

earnings financial call. their Investor Relations release on and measures for will KPIs portions this of non-GAAP our Please be reconciliation to the conference to financial measures website of these discussed GAAP measure. our and Additionally, refer a most the other in comparable directly tables

like Co-Founder, FiscalNote’s the I’d call that, turn to Hwang. Tim over to With and CEO Chairman,

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in summary, improving front In us our compounding opportunities we’re growth executing the on model. today, of

continues demand is business to underpinned generate regulatory, large uncertainty that a durable products. and macro by growing geopolitical, Our of our operational environment for macroeconomic

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our structure long capitalize and growth aligned teams growth term. the accelerate have sales on in opportunity and our operational We to

provides building decision and are growth the million, X scaling on leaders, important company XXX% most As to billion to XXX business a makers that we XXX revenue focused unique compounding profitable world’s million, value recurring in beyond. XXX durable, this million, and

Now, it over details and turn let forward. going our Jon me on outlook to for the financials

on year. this going further morning. I’ll discuss I’m financial you, and providing also Thank for details performance time quarter. some what terms expect good Tim, spend to in the of to

Let me with start revenue.

On year-over-year basis million, year an impacting X% adjustment GAAP GAAP organic marking year on XX% XX%. revenue revenue Second and over deferred quarter after was non-GAAP growth the of $XX.X revenue a XXXX. basis, grew excluding

We by continue been forward. tuck-in this expect acquisitions. to accretive our track has This strategic record, moving continue we complemented growth deliver solid and organic performance to revenue

quarter our X% year Second of adjustment up recurring our again, organic XX% revenue, is once subscription strong XXXX, from total an revenue, noncash which XX% was This and the $XX.X on deferred increase in excluding an basis, model. showing ago revenue of a revenue million. makes

Our rate million over QX advisory XX% growth. million, was year of year-over-year $XXX,XXX year. and exited other in increase revenue total, with a $XXX run marking revenue $X.X We

basis rate XX%. retention, approximately metric or reflecting in NRR, on past plus quarter It was and run defined press as as revenue subsequent revenue growth beyond. is is net and defined baseline X% is the for release. million, serves during basis, ARR as nonsubscription $XXX organic earned an pro forma revenue revenue key XX rate Run a a our On months. the quarters management for a

accounts. our now Enterprise enterprise are retention customer and said, represent As we’ve fastest-growing, highest rates larger largest, strategic among group. NRR highest accounts

and strategic increasing marketing XX, steps taken total to the to this to sales more period an in drive of and annual of NRR. June We XX% recurring total same allocate XXXX. ARR, We million resources to to accounts revenue, or have grew expect $XXX as recently large compared increase

Organic on end. when a pro ARR of This to in as defined year was forma as last QX growth ARR our quarter $XXX rate compared basis. represents a million X% of

As we’ve half usual said, second our that seasonality. of we will anticipate the in place reflecting growth take year, most ARR the

we profit, at Looking enjoy strong margins. gross continue to

profit QX representing XX% Our gross million, $XX.X margin. a was

adjusted non-GAAP an amortization. gross quarter XX% after million representing profit second was Our for $XX.X margin profit adjusting gross

the approximately consistently XX% expenses. year, Total cost revenue, Our adjusted stock-based gross over $X.X year million excluding profit grew after excluding quarter. noncash in of margins quarter high range operating the remained expenses, compensation

Of costs that, acquisitions year-over-year and to year, a increase. the we quarter, expenses OpEx, a approximately of acquisitions, million due over decrease of for Tim for sales $X.X increase total sales operating accounted as about $X were quarter from excluding million Within noncash from of $XX.X other referenced. $X Sequentially noncash stock-based largely declined last and marketing year million expenses. an last as structure, $XXX,XXX quarter, the realigned million but compensation

of part $XXX,XXX million, increased from from were expenses efficiencies. to R&D $X.X QX $XXX,XXX but increase due year, last a about in a reduction

$X.X last over from and acquisitions approximately a quarter. driven relatively were flat costs year, increase by million Editorial partially million, $X.X year

million. expenses for by G&A the an ago, $X largely noncash stock-based expense $X in million, year of of million approximately quarter driven were increase comp a $XX.X an increase from

year $X million, was Excluding public to $XX.X company an noncash costs. largely due stock-based comp, over increase of year, million G&A approximately about

reflecting and seasonality benefit stock-based expense. G&A reduction some $X QX by Looking almost plans, cost from million, our lower sequentially from expense declined QX, comp

This in of $XX million was operating million includes for stock-based loss $X The comp. total. QX

proxy expense Our going expense depending a million, good million, rates. cash which our is forward total on quarterly interest interest $X.X of $X.X interest is which cash expense for was

loss agreement million a our holder. pre-listing exchange recorded a of to with GPO, also $X.X We noncash related note

The for under reconciled is million we held a was disclosed. exchange agreement, press net our our EBITDA million, $X.X QX canceled shares terms for loss of number new this issuing note the GPO by a GAAP release. In adjusted $XX.X previously to loss of in which

of cash cash XX. $XX.X remains June Our equivalents as and of solid balance sheet with million

capital initiatives. sufficient to operations have We and our support fund growth

of helped is EBITDA reduction plan and to XXXX million driving million to expense in cost in $X QX. operating annualized in-year adjusted $XX $XX savings improve million. $XX actions savings million our These of to Our

in pulled Given have positive of now guidance. will one adjusted profitability trajectory, quarter our our we point ahead goal. EBITDA of forward the FiscalNote QX, reach profitability inflection previous

our brings This to me guidance.

million. to QX. QX, adjusted $XX to be roughly improvement EBITDA prior This expect For our million guidance an positive to revenue is million, of in of breakeven over and expect we $XX we $XXX,XXX $X

year, the growth For full GAAP year, of $XXX million the of over revenue marking are we acquisition XX% to XX% to including of including guidance, million, Dragonfly. year providing $XXX

unprofitable sufficient greater products Run a continued are XX% decision inclusive prior position decisions to Ultimately, and for team merit narrow visibility. the reflect revenue on decision sales short-term current efficiency previously This the $XXX sunset our focus to company million, is of growth. into of of to conversion million to due that profitable to is large investment lower to a realign rate of enterprises. impact and more to This revenue these to achieving range $XXX range with representing XXXX, Dragonfly. not consistent accelerate growth our long-term XX% our the and than increased provided slightly

to We million gross $X expect full approximately and year adjusted adjusted loss at XX%, between million. EBITDA a $X continue margins

quarter, the mentioned, we and these gross to to first place, margins, in platform a quarter. As margin our reporting implies We EBITDA profit continue guidance remarkable manage strong fourth positive continue XXXX XX% in a forward in to of XX% from the we to have the year-end results adjusted Tim X% operating improvement early adjusted our deliver as look leverage costs.

of revenue to EBITDA. drive strong expect incremental We conversion adjusted to

reach adjusted to will the inflection quarters. point we cash EBITDA us free enable positive deliver flow in margins operating the of profitability, coming As leverage

acquisition strategic Our program. and supportive the company’s of lenders flexible remain focused are

of conditions. million certain $XX subject debt capacity approximately to have We

opportunities to to are growth M&A accretive We selective continue profitability. pursue and that will

we give stock transaction course, earn-outs of to with structured structures heavily price, focused And on that terms are and stock given weighted dilution. upside minimal consideration long-term our with

propelling the secular solutions There profitable business world’s decision deliver makers. business and to compounding In as closing, drive mission-critical growth become our most sustainable to trends demand. top-line are to providing a continues creating we important management

in and throughout leverage our to drive efficiencies new to continue organization. growth We investments AI the drive opportunities

forward revenue, and have gross we earlier to And FiscalNote cost the QX, in our long-term scale value. adjusted strong be EBITDA than expected. adjusted now and EBITDA drive and pulling management, quarter adjusted expectations recurring With a are expect margins, to ongoing capital operational and structure profitable we

will With now to the that, open up I Operator? call questions.

Thank Latimore you. [Operator our from Markets. And instructions] Capital we first will question Mike Northland with take

Your line is open.

Great. Congrats lot. strong Thanks Yes. the outlook a on here. and results

you of to As year expectations, compare the how How your first here, years? bookings the looking? is the half tend obviously to does relative look I half. second to coverage to be higher guess, than it that pipeline prior

Hi, Mike. Thanks It’s Jon Slabaugh. the question. for

let pipeline, here. And I’ve closely he works him Resnik take Rich, I’ll question. with Regarding Josh that and got

Yes. thanks for Hey, the question. Mike,

yes, in the we’ve We work we promising. that we’ve how talked which higher pipeline we in of far productivity, some as QX think driving changes sectors focused – and in – looking the so both teams into sales going is organization, on. of terms about terms to made So, be the are

So, we’re for headed right half. where we’re now, the second feeling good about

a And Great. can government? that look versus enterprise little also vertical skewed versus talk here, commercial it Is then bit does logos anything mix. to you more the pipeline, And it new – within like about more you upsells? maybe

Yes.

public sector. and – a balance sector it’s enterprise sector So, public and private of

the retention. all on We some growth are considered, it’s but But we’re macro seeing new good challenging we’re little in compared this, like – with new things more logo still logo always seeing, as a – on environment side. a side the

track. And the of sorry, What may Mike, your lost rest I question? have was

if the has to, mix new versus prior relative changed logo upsells wondering Just say, pipeline of years.

No. compared years. I mean, prior to steady relatively it’s

than going is be said, to consistent. it’s logo in but macro, new little I harder like So, relatively this always a retention,

And of on are pipeline looking deal What is the just you Connector, the seeing? Risk that? sizes interested? very verticals are What interesting kind How kind launch. then of for

Yes.

we’re pretty pipeline. actually – pipeline seeing and industries. across broad applicable It’s build So, there the is product good a

to deals average relatively multiple of we’re good six in to be a deal tiers going. So, lot compared generally And large we ACV. sizes play our that’s be got to where but feeling We’ve figures. expect expect these pricing about

Hey, Mike.

to question. that lot call, by in we earlier to on our with going rates alluded are earnings the in largest in very We last driven of kind enterprises. And with just but something – Just your script kind that our of to seeing enterprise of jump is group. large your a kind the NRR to back good of being traction this

So, businesses we’re that new are kind expansion new XXX a capabilities amount Fortune adding our XXX, quite talking data sets, seeing by large Fortune onto of adding platform. of

And so, large board the manufacturing, other in across QX, pretty a healthcare, wins we much expansionary saw retail, energy, pretty even just and in sectors.

underlying So, those from we as capabilities, should our mix could large compound larger new revenue businesses and over to a add be enterprise of to continue that, customers expect larger time, coming those overall.

All right. Makes Thank you. sense.

next with MKM. ROTH Baldry question our from will take Richard We

open. line Your is

help side? obvious a people no, well, where about probably guess it AI any from alleviate around talk – AI confusion that. easier make won’t you on the will the maybe do odd bit Thanks. think I I the hearing Can think the And is at little say, they FiscalNote. question I you but answer what

Yes. Yes.

data way the two of things it in the we we’re of think that is some within areas, in right? like kind retooling customer fronts, we So, acquisition, about automate or capabilities. are internal for using So, our some doing we’re of that, so can acquisition AI? things there our operating where And already instance, expenses

of largely OpenAI’s and Bard, we’ve partnerships Microsoft our market R&D, within so extend with so seen that I have executed because Bing, ourselves forth. we leadership ChatGPT, Google Specifically the think on and

to and reduce these large-language our with R&D us expenses able sort be models of to the things by like. those load And enable sharing the

relative you’re operating And seeing so, this expenses. that’s reduction to R&D expense why in

a of we is obviously those level and also having day, of the to product. things business are need profitability. great great at nice But business, build the great have some end Now, to by drive obviously a and some determined a

decade-long And investment FiscalNoteGPT, information, of instance, that see we’re you legal can combining of and language in, have and unlocking where the launch that to data, summarization in ability things for for of regulatory – kind to that that capabilities all models to the so, us, of our able with sort new our overall. that and own other like question-and-answer capabilities, are able then to combine be systems, be things the we create

sort capabilities this unparalleled also are is be capabilities overall. that reducing of of creating new these to think operating to terms of in of the create it just and able expenses So, I types ability combination

shifts that’s you And a segment sort any these it’s sales whether causing technology it’s people think interested pipeline, more of about the emerging – like slowing rapidly broadening confusion talk you in of sales going do of this are cycle? Or types can lot on. solutions? now just AI you think it’s Do

But to things are and also are entire that new of summaries new to context we capable us that. same document a new The and also doing we regulatory insights think that time, our the So, automatically ability value the pull these and populate benefit have and create we expanding customers, immediately. these ability, products. like enabling capabilities at the I to create right? right, are going what Word of the customers automated for summary capabilities, instance, up to are existing provide to adding from customers today to

is Connector great Risk example. So, a

within risk, so software market. we FiscalNote, supporting played enter supply and on forth. market in can the the have, focused enterprise, have analytics sustainability, focus new new that chain so software, leverage chain and of and supply folks now, on we we’ve we buyer create are who a data historically and kind the not on the because And

opportunity really it’s AI-driven combination us so, total drives And that new addressable drives innovation revenue a overall. market that this for new of

contribution maybe out Europe versus the the mismatch revenue. between you to overregulated And how of called sort

do got? And to they’ve international careful on the capacities, they’ve up be how – gotten you you’d about your feel adding you’re the headcount sales So, you Thanks. reach efficiencies even do there? think costs, over being

XX% in stages as kind market. We comes But And this little Europe in definitely European our the today I’ll revenue Substantially a on early from of portion of compound are XX%, from the Asia. I that of Josh let comes bit. Asia. lower of growth and mentioned,

that Obviously, market. still markets know, in that it the capacity, we your way a very if each there’s doing long-term to the you are infrastructure. but in anything us in thoughtful in growth country to sustainable definitely expanding compounding and infrastructure build I European end. don’t are and wanted early enables But and the of We stages, of so building Josh, in drives have we’re sort we’re else

Yes. Sure, and generally in and add Tim. of time. Europe both products growth demand there, opportunity I our strong that can we just a are lot for see organically inorganically We speaking, Asia. for over seeing

bases strong both operations areas. of in have We

and We throughout Korea, Asia, have offices including Singapore, Australia. Europe

there, opportunity of take of lot a see strong expect we we and in a advantage so, to very that way. And

congrats improvement. And Great, profitability on thanks. the

We will VanVliet take our next question from BTIG. with Matt

Your line is open.

Yes, morning. thanks. the time this Appreciate

commentary it’s Just AI on bit and ways in maybe on sort little the the of of a number a platform the drives embedded is Obviously, that really additional front. one engine more been all in of this.

the expect this of products way fact functionality you’d the kind like AI-focused have and you into further have the you as or FiscalNoteGPT, to to embedding extent with customer this more – something what in? existing kind and or road see product expertise of to generative in partnerships really that other of is product the a look it portfolio? on delineate just is across kind Or leaning the of a do map Google of at you expect OpenAI. something tremendous But We monetize AI is directly sort more

Yes.

touch to base point. bit little just on that So, FiscalNoteGPT a

regulatory, information. first we’re So, statutory, excited and models and incorporating large-language policy very AI FiscalNoteGPT. by proprietary the generative legislative, platform for It’s

generative AI it. stakes. table be summarize systems, customers and to such need view are insights, an embedded the is customers because timely of as long-term the in them going in FiscalNoteGPT platforms platform issues. concerns do are think with that We emerging interesting it I generate new these to that expect our things And other or that the identify like interaction a it to in in is itself. They opportunity sense enables

for for ability, with software companies. to instance, leverage the in so And language instance, our other models, partnership

revenue our leverage of to applications are the to the and we APIs, to build all them able for see mid in long new be to streams those on capabilities it, top new term. that them For

the so, launch this creating that product is and doing for legal platform in we’re kind participate customers, and it’s to our overall. applications regulatory the but of not for we’re we’re And capability around a and with platform essentially ecosystem the what partners technology new – that delivering just other

growth Okay, this Or Any XXXX, a which then sure we’re – is just this can sunsetting. talked plan? that wanting at key products? previous versus of focusing of or very maybe of is make And products, headwind share And look year adjusting does revenue about present the here, does helpful. you impact forward models to to resources you what but how the kind importantly, more growth as fiscal around in it importantly, you appropriately? impact our specifics maybe more the understanding kind much how exact

Yeah.

line of look single then I’ll Josh would over potential, start we product I’ll to line at and pass allocate at philosophically and kind EBITDA impact every Jon then it margin, up growth say here. is against and that we what and capital. gross But company, I off, So, our dynamically

that So, mostly resources have against in potential. grow the fastest case, technology products most profitability and our the the people and

So, to obviously the growing we’re into in reallocate time, going that we’re are to going from faster do is seeing what capital market. things time we’re to

we pull and and and Risk So, profitability. saw very, product try very we of sales growing off more growth if R&D and into Connector for resources Risk Connector throw different was it marketing instance, to a more quickly, drive

the we rate of or way capital for some But the that variability different degree revenue, – product like. on GAAP an revenues run of and high lines revenue. do we on of largely because way so, recognize ARR allocating we basis, And a will in the of different create largely sunsetting kind probably that’s that visibility recognize because on and level ongoing of product have lines

continue – know, But think don’t we we’ve so, to future. on at grown else trying we focus But I have EBITDA into the everything had we’re override before, anything on And kind drive do add said current going want are margin that end? your to moment EBITDA to profitability the double-digit margin adjusted I that be as – of to that very Josh, as we dynamic. Jon, you do the

strong a growth we took on our we impairment a but I’ll the it. feel area didn’t and Matt, point the ESG charge ESG business portfolio to finer just around see. a equilibrium that’s have made on still the the like term, for long think is we of little traction wanted bit tool product. Sure. put disclosures We that that benchmarking

will as to why run But to long-term like the an which decided generally the for want of impact, realignment is on of we areas. we for narrowed that revenue kind a rate and into growth will drive back end see. that and forward force, That year. feel enterprise, more the contributor we the we of range in large So, the to other focusing sales partially we ultimately, make get focus profile of kind have the up

right. All Thank Great. you.

Rudy We Davidson. will question Kessinger take next our with from D.A.

Your line is open.

It’s growth continues improvement I in year-over-year metrics in assumptions Great. of second sales acceleration to in such the in to a just the rates as as close Thank you What an guide want that? dig assuming fairly showing into on you. are aggressive and basis. productivity? as assuming terms on the the far half. you Are look guide that

aware half second the about that software of only in company that this to You’re the that’s guiding of public I’m year.

and kind Josh years midpoint Thanks, prior to on quarters, range And in third pipeline at close in like forward. fourth kind the coverage, of of prior the closely we what rates as of talked closely validate and a kind I’ll the we about, monitor to those look be the we’ve we go as say two is Rudy. precedent forward what determine feel assumptions based the years we put of what as expect saw and

second about envision burn to about just we cash maybe should in second balance half? in How Or $XX.X bottoming? differently, interest put million then And Okay. cash on in think you be do got expense where you cash relative half. that the cash flow or the your

we But go-forward year. provide of meet it’s and filings, really year. in to to collections and part the of in securities any seasonality but low and stand. don’t positions safety kind cash no will going looking of level haven’t December adequate is that specific the forward, end feel models kind as kind and end look requirements of comfortable Obviously, cash like we the the the balance we provided The the – I different of at see QX of of that point, this, of a operate being is closely the rebuild cash of the at continue cash we at year. we where have, guidance certainly closely first around significant pretty our this quarter, all next such have we we’re

you. it Thank That’s it. Got for me.

Mike our Hutton. [Operator from Albanese question take instructions] we E.F. will And next with

open. line Your is

Hi. my Yes. Thanks taking for question.

the launched well. want of regarding of the I wins. kind number last guess, a new to, burn, this Just kind build cash, as then products, to patent off you’ve additional product cash relates partnerships, new some But and obviously, pipeline of

can the can expectations your into on continually maybe of relates you to the XXXX. us bit year tell give moving as color into and that of innovating. your forward? back And capital mean, Essentially, I more you you’re half kind R&D expenditure us what a little

actually of or may decrease that flat quarter. our don’t of and been kind neighborhood remain running really So, cash time. have per increasing We kind expenses $X little in over of bit capital the a million foresee

We a to the of market, internal capstoning over will of we’ve that I are down. XX to feel of as expenses last kind those begin we months. number been the projects like, come working on kind bring

as source given additional the ones. we a cash, interest continue well. of source at as that… are that, And growing cash to of revenue deferred we’ve interest then Is those expense income Other big some the kind – Obviously, balances look guidance of around increase. subscription as than as cash two

it. Got

you. Okay. Thank

Is that Mike? for, what looking you were

chance general initiatives you well. any few any been take to last got that cost-cutting at the here. adjusted mean, learnings up your basis the Yes, that’s have moved just this an I seems you on quarter. like hood And or of general takeaways major really least Obviously, going under question a It over a a helpful. a then lastly, more the of profitability look quarters or and here? is EBITDA expectations by

a look details efficiency did organization. process there, I go multiple the to of to think to an dig us gave the the to but through we really it’s us acquisitions for Josh into It for bring I’ll opportunity let through. good been ways kind

of I operations if on more the Josh, that going and that. don’t you ways to to continue some focused to forward. we’ll integrate add And We to on legacy do want also seamlessly.

Yes. Jon. Sure, Yes.

So, I and of Mike, been review organization mean all our a entire top-to-bottom it’s our operations. really

around a And realignment growth. as before, Tim sustainable about and it’s said profitable

being products new potential. And matter we’ve products to decisions make then areas very of And aren’t of other Enterprise shifting quickly and decisively launched we’re line to highest growth resources so, us, that willing like profile with core on in that that a but it’s been Connector. the being Risk for a also segment profitable seeking. that

future better teams technology platform We’ve is made and how that leveraging teams, more entire it of efficiently, operational our with And profitability. throughout. driving changes in in model for throughout providing really addition AI operate and the growth realigning to operate, for terms shifting that a the I us think to

Got Well, congrats it. and quarter. on a taking thank for nice my you questions,

you. Thank

with question Riley we Cummins our B. final Securities. will Zach from take And

line Your is open.

and Thanks that you in morning. little kind of Can the here incremental seeing some of really upon the been what from build resources my reallocation of sales last of made within the of of were approach Good go-to-market force? those just changes for more a of couple you Kind key what terms kind bit months? taking changes questions. the you’ve Yes, thanks. in

is This that. Sure. can take Josh. I

discussed of shift So, a as we’ve enterprise. lot to

a strategic like accounts, away the go shifting from adding to accounts new largest So, accounts after smaller some resources SMB. team

customer our and and to retention We cross-sell. have better drive realigned account teams upsell success management

much and really – talked we’ve profitable Henderson, growth of entirety the about. be forward a headcount on really and drive enablement towards leadership focused optimizing lot of sales organization. the and Officer, having our that Chief improved also organization sales direction We rigorous new having the and real have scaling a it, operational We’ve in so, organization the engine to that kind operations able management the Revenue finely been establish tuned behind and a strong to throughout come in performance Richard being more over

pricing, significant customer around even with growth efforts initiatives and and into further things about success, further And we’ve we while drive through further drive partnership continuing management, gone I’ll the still have about to underway a and spoke – strategy, earlier, change bundling, to talked Peraton. amount we’ve and on upsell improve optimizing like leaning of then our things already, and relationship products like packaging Tim add cross-sell, to account things our previously like which with that

to continuing We’re already traction. go And further seeing some partnerships into well. as

sentiment. year, Understood. of the you And seen any of buying especially final question the of kind government agencies of kind mean, last saw your at end and you just last maybe really material customer overall for of beginning I have from what is me of patterns enterprise in change here around customers in terms this versus year? couple months

in of community quarters, lot in we we’re past I our some would what some reason. on terms what in and budget would core that particular, to our cycles of offerings. and we’ve products policy strength and we’ve in terms see Yes. a seeing seen sales with enterprise consistent – about talked say I in continue that resilience continued the see Overall, in side, sentiment, elongated challenges to we’ve of for say,

our Dragonfly. seeing We’re of demand strong intelligence for security out

mentioned I lot as Connector. the of board, before, across interest, A across Risk in sectors

for we’re chains because for and intertwined enterprises risk geopolitical, to vulnerabilities about say security large in all large turn enterprise. macroeconomic, we also enterprises with And increasing us associated the can we’re are intelligence So, concerns seeing a combined are issues that having those their seeing I’d offer it. and around supply

focused clients and sanctions been Taiwan, where about so, And to we large who implications, view – macroeconomic so, China a Fortune impacts. negative and offset can now have a looking have regions tariffs, related concerned they from tensions XXX potential invest with manufacturer to on at we and as looking who’s impacts policy are for other global and

what’s with forward. a growth and their we for globally bottom So, how is trying happening to they large can seeing about plans concerns continue enterprises of line make lot are paths going

quarter. questions, luck for my and Understood. the best taking rest with of the of Well, thanks

you. Thank

turn are time. Mr. I closing And there for Tim the no back call remarks. at now will questions this to further Hwang

forward for business. call jumping here. Appreciate profitability growth everybody. on growing and everybody, you, on our Thank to on a Thank continuing delivering we And plan, to the Great. time. just look the you, company long-term execute

We this your you today’s for call. And participation. concludes conference thank

may You now disconnect.