WalkMe (WKME) 21 Feb 242023 Q4 Earnings call transcript

Good morning, and thank you for joining the WalkMe Fourth Quarter and Full Year 2023 Earnings Call. I'm John Streppa, Investor Relations for WalkMe. And today, I'm joined by Dan Adika, CEO and Co-Founder; Scott Little, our Chief Revenue Officer; and Hagit Ynon, our Chief Financial Officer.

Before we begin, a few housekeeping items.

First, we're continuing to incorporate a video element to help showcase our technology and some of the great things we're achieving here at WalkMe. presentation. to or our be a the of you to website, available encourage conclusion live watch replay, our I go IR to ir.walkme.com following And which will

[Operator Instructions]

views forward-looking Certain make harbor and meaning Section Securities Section of statements of our of Litigation XXA the Reform Act Exchange provisions XXXX, XXXX information current Securities of of the statements today constitute safe expectations of to subject Act and and beyond we events. U.S. the risks, Securities Private XXE within control. statements may Act are the future and that of of forward-looking which the These uncertainties relate XXXX our to assumptions, are of some

the Securities XXXX, the factors, filed Commission filed for as number Risk XX-F outcomes of Exchange a those result including on and Factors additional forward-looking Form report statements the our information. materially may See in SEC. contained Actual or differ section of a XX, forth March February with from release set in press with XX, the on dated annual titled our XXXX, documents in other furnished the and information to

transparency its and used of respect evaluate operating performance operational metrics this future by enhance financial these today these intended or certain provide about and use in will addition, measures financial means financial we the information and operational results, presentation is for to and substitute key management We financial decision-making allow for non-GAAP to a that and for understanding accordance overall GAAP. non-GAAP useful as to prepared as period-to-period presented information in decision-making. discuss and metrics The metrics. of be greater In considered prospects isolation comparisons. with believe financial financial to not are with We measures a in the or information superior past

used and by our by indicators Further call, number of performance key management a this our industry. throughout provide often used competitors we will in

For see on the financial measures XX, non-GAAP reconciliation performance tables, press and our dated more February key the information release indicators, including XXXX.

regular company understanding to clip kicks Now new year, broader event debuted our AI We to, with we Please trust connecting and prepare forces the business to a more enjoy. we're kickoff come we're into organization. from the before wave where transformation of solid of to the about earlier change solving away off market remarks, we a Dan is unleash. ourselves narrative share are this specificity we our brief you'll how for helping problems adding prepared sales a companies the wanted

would full organizations have actually key this an the What support problem. problem. processes. of We've introduced is technology a that in the technology which that introduced been wrong value management potential. And using thought is these customers After X to we've and from and yet our decades that's underestimated technology we you've the the your what problem all is had a a people We into mean of we've about change, the because using them we're of is their aren't find gap way. digital fail that and have your people. to more hiding digital and to powerful transformation where ever, ourselves at for the unsustainable we rate On as between with goals. workflows to. paradox. friction we side, they're new they their have thinking most a this getting, projects And built change business your hear more our level transformation, And tools meet again not they friction meet their we that in technology we a There are, one when than access result, we've time technologies amount time people

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people. goals. And consequences fatigue The way the with their your getting in way new you achieving long set to employees. too Change ramp it's are of in taking has existing

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to work. helpful get of through notifications get and guidance natural people remain moment all interface interactive and answers conversational Your the kick language in-app of at compliant, in and stay flow to a need, off the tasks informed

platform software DeepUI, The is the a our proprietary WalkMe powered AI technology human that by way does. understands

friction recommendations friction delivered applications it web to a before automatically constant the commonly, it be eliminating problem. via in workflows to in make can application whether and for your that desktop adjusts support span and the is most or multiple that So It's hiding, workflows one underlying key often more mobile apps. becomes prepackaged change where and

you're get to global optimize all exactly the biggest that turned data-first workflow X,XXX customers know because you you These applications. by can approach to and other you workflow, friction started. where points, And an pick us unmatched have lets see when workflows have next. that you across ready, we want So your to

dashboards KPIs of that so over against keep billion transactions X you customize our that how can goals you and and track you're define. your for we processed leadership can customers. progressing can You year, Every

Our security grade. is enterprise

are workflow there. and only for professional In solve fact, world-class we and we like the problems every We you FedRAMP DAP, out enterprises have certified and almost application that support demand. services

when come we and know seen you confident to value So we've you us, to it can quickly. how before, get be to

professionals, work have so regional with. largest strongest have integrators the systems community the always of largest DAP partnerships you the it. in partners support We we And can the world you'Il to from

when industry This help analysts navigate adoption consistently folks. the is choose customers close partner #X rated Xx a through consistent the digital among and our constant can why is be return it. to WalkMe. they you see Change WalkMe we're why platform to

revenue recent enterprise Adriel's mission-critical I problem really demonstrates a transformational with a with We our an ended us. I million. consistent We guidance XXXX world. With from event. clip a Good is concluded SKO last morning, ARR everyone. largest WalkMe quarter. begin. like to $XXX for you hope solving of the year million, It enjoyed $XXX the how would was that, short XXXX companies with for in

improvement with the investing been needed customer did beginning our year, leadership structure and plan. since Chief few happy mainly and on it growth Officer, team. able forecast. $XX our cash happy We outstanding of some burning fast. our of drivers, the fast fast. generating on operational shifted we today. We highlights Customer The I'm added value while put in below and both a This a half, in how we business from to it macroeconomic accomplish our first in to million was a in transformation, this to XXXX. delivering in are and Although I'm in a within way our pressure profitable updated optimized profitable internal and strategic is focus over million foundation. as We've made to strengthen around, this future become quarters. ahead adapt on We company was to were our executive and Sunil customer cash flow, in original the line QX XXXX, our laser XXXX share with headwinds the Nagdev new and We focused deals, and of company achievement $XX in renewals we $XX expectation a decision all our value million excellence super our we

with partnerships continue driver our our It's and TAM. our to deep already in certification, global FedRAMP relationships upcoming revenue the an of marketplace our including accelerate growth into to which seller Mahindra, a contribution new to obtained to signs and a us invest others. We proving allowing order our in increasing offering AWS We early customers of We AWS our among sell Accenture, the We years. organization official top opportunity budgets. in partners, program growth signed federal expanded ARR. Tech we launched new significant showing some partner buy success our through to WalkMe their Propel Deloitte, became already and

launched X more million employees the enterprises unlock visibility On seen Discovery QX and stack full now, in tech have to worldwide, for we growing product XX% side, over tremendous their than success over WalkMe QX. into covering

offering workflow technologies. distribute new tracking continued unique visibility who customers, everyday adopting AI AI Shadow it enterprise AI our on our to We WalkMe top launched needs. for are workstation We to and their utilizing focused

management immediate and take change We ensuring foundation to giving need organizations are action and scale safety achieve enterprises the privacy. at they while

DeepUI of invest AI text technology. foundation interface We to lines in our a the to like every human. DeepUI learns existing proprietary and user action vision our of solution. product understand is AI It powerful and our advanced continue deeply a

influence the demand analyst growing On to from category, Forrester. This release and inquiries were testament Matrix ever. across in which our guides over different than cases was depth demonstrate the we and We're Wave. Gartner, use Market cycles, X all market of of and performers the a IDC from DAP saw the the the coming XXXX stronger and DAP digital Everest our leader entering hype star firms, workplace. including enterprises. We technology featuring Gartner PEAK saw We huge its of and major Forester leaders named the New

profitable and a team, We balance strong better a as with very sheet. cash generating are

million the changes DAP in have a in product our $X.X basis, flow are expectation, leading We and we're $X.X with a on surpassing offering wider ended felt and We strong results. QX high market. These free better the in record with QX, profitability profit our cash million year milestone. a a non-GAAP another operating generating

with of XXX place million, the can and $X that right $XX scale. in We've subscription proven reached a new required We engine paying over customers measure processes and to revenue over in X% customers at DAP produce XXXX year-over-year grew us and our by high the WalkMe the we ARR. cash million XX in

now our the accelerating XXXX. growth marks of to end QX in ARR transformational net we phase, and turn

path clear as XXXX in aim growth, ARR Our new growth double a double-digit XXXX. ahead very we ARR net which in will XXXX is drive to to the revenue a acceleration

delivering We drivers, the DAP accelerating product true GXK years, our driving and source strategic our growth our about as focusing excited on by continue ecosystem which customers partner key to faster enterprise workflows value I'm our opportunities X companies, show a invest for in our strength the GTM our consistently throughout of upcoming last from business, in growing enterprise on roadmap. revenue. expansion

accelerators. customer be workflow Workflow changer how the will in WalkMe in to customer which value greater also will we base sell retention be of game with a value. will is ensure key on We a the contributor launch and expansions. and faster to to result deliver This faster value, accelerators customer delivering positioned focus our higher

product version a enterprise true workstation of employees. exciting new evolving workflow our into Another copilots product is that for is our

the of next support for summarize, exciting play many innovations announcements workplace XXXX us. will key a the I in and our technology want the at coming AI how regarding of vision be in upcoming take XXXX. up employees execution partners, DAP our growth in value I'm role few have will the for in in their enterprise and adoption. To months for and to mission. the year customers generation very the investors, ARR a and of your We thrilled exciting DAP thank and the and more you moment a next scale. And continued our accelerate our to and to amazing execution thank to aiming team all belief customers deliver for

to workplace, of will future and We the are we and shaping our digital scale continue innovate business.

Scott, you. over to Now our CRO. to I'll Scott, over hand it

tightly Thanks, Dan. our cycle clear third accelerate net We've we a as on had shifted sentiment. as in I across new a full using now made nearly for already ARR team services a a head change. I've with changes. the customers. go-to-market is seen CRO, our energized by to sales we in streamlined the foster business In our customers. want lot of for deployment The the is XX%. highest coordinated seat to value deep identify the our tied the team is the scope and experiencing the team on services customer's outcome-based territories our time DAP. We're priorities, transition success and organization, with solutions customers value. and and discovery applications. to an into with quality This the we've to XXXX quarter, outcome-driven just We strategy XXXX, year to developing relationships as value realign expansion life revamped started from best workflows methodology to big echo well, The of handoff of focus potential, implementation new work deliver decrease to happier accounts model creates Dan's selling workflows the business selling our the critical foundation time purpose than the growth. our will with now the customer to as accelerates successful to this based land a The rather we've which

value internally base group coverage resources to across our which our coverage our now over factor value the sales for churn success critical for a processes for transformation our successful across our We improve opportunities. benefit business will focusing and have XXXX. in of workflow and to us redirected twofold. outcome-based base We've of creation big XXXX, CS expanding highlighting renewal in renewal was on on customer workflows platform focused XX% This scope the new

GXK expansion the customers, areas, with and new First, by enterprise public and will our sector throughout increasing risk churn accelerate of reducing top enable expanding These our laser-focused by partners. net growth large us and second, to opportunities. XXXX. We're business benefits U.S. on

certification year expectation. team our kicking from sector multiple XXXX off that well a above public deals had were great to with Our in landing FedRAMP-ready

deals as ripe on larger And just of market. take much plan with so market, DAP the deals to being WalkMe provider been we U.S. doubling their be in our for U.S. The federal sector is getting We're the advantage of opportunity. than FedRAMP-ready opportunity. XXXX, longer sole positioned continue progress this started. the to public is to footprint in traditional expand U.S. tend that's enterprise In about duration. very made contribution we land well federal We're extend can our and excited far. particular,

a entire to an and business. phenomenal their the out job Our enablement organization. contribution partner done a of overall expect program partner grow program continue We've is part integral will building world-class our

Our trusted working we some strategy. integral GSI on the And change practices, partners the management as are a their transformations an in to world. their contributor business of largest of are part

realized partners business partner we Our uplift net XX% see partners is of public or X/X in sourced ARR. in we we us, When XXXX, value higher. of influenced XX% new over see and over ARR. our average and opportunities greater bigger they source even ecosystem, our expansion. for customers, of stickier engage our When deals impact on implemented deals nearly sector new an The the for

year customers opportunity footprint. to with a This us are deliver for clear enhance crystal customer customers non-GXK expand. when prove expand workflow a and our us our great we our value, are group is we to what target It customers value us these average, GXK On paying. represents as expand. base We key we our for to total. GXK XX% of are paying represents XXX whose ARR Xx our ended Lastly, continue over customers the over

a an global XX,XXX users. first landed WalkMe with over With on from procurement follow encouraging percentage platform highlight go NASDAQ drive by across in to of company new transactions increasing they This as platform navigation, customer that pharmaceutical and the to global simplifying involving the of XXXX. WalkMe, the to process focused implementation want easing new when example, I structured setup the the the spend investing intended through users technology. initial business XXX

buying engagement the they the with saw of they interactions. year, software users XX% their improvement first of WalkMe which the of NPS directed In time, over and in XX% was reach right outcome an their to score, intended their saw the They investment. channel

and we it year We're with to could and this Big-D XXXX. with expansions excited our is that add a these to team, Smith, BDO new on now Distributing among do other Core they a a ahead and for we Following this excellence The others, cohesive success, clear is in value. and customers Company say alignment great Group, in our DS organization the expanded us of many focused Group, Centre their value about hand like with go-to-market professional Flight capabilities of Crow, our as drive that services clients customers XXXX, and in I'd customer We're us focused execution customer expanded turn, to established as accelerating Hotel more. recognize that, go-to-market quarter, great WalkMe, the center processes. Accelerating as purpose entire we Hagit. they construction, sales, we're expand to opportunities the a am to example workflows thank Canada the we and from sell. With larger Travel revenue such benefit over National or thrilled Republic value on mission-critical and when added to I can organization of our path for what In fourth success streams. such between prove we our

for we XXXX, has CFO, negative a where I unprofitable free with free fundamentals a generated $XX This XXXX, rebuild hi, a huge the These WalkMe When in company XX XXXX. From share cash a our of have to on $X of million to are over high-growth made loss cash. an achievements which entire WalkMe, million of XXXX year. that for and areas, since and company structure ending operating excellence. company $XX over in with as clear excellence. become year-over-year entire Scott, a improvement operational leap a a QX million you, percentage focus an on flow XXXX the profitable and optimize was our an cash points burning path million towards Thank $XX we our and to focus took was achievement we with over of compared is of $XX a a role flow transformational year in million year proud a to in everyone. loss of a profitable steering on way. been operating organization scaling adjusting internal now profitable huge a margin I'm company WalkMe just result of non-GAAP the of improvement XXXX direct cost a X the in changes in operational non-GAAP

focus in continue and with By efficient by aligning to with our on accelerate with will our customer-facing We path services to unit go-to-market transition professional our are our current our we to teams revenue value subscription be as of continue to mind, time this XXXX. line on effective of growth partner our improving in higher the now XX% more economics, with ecosystem structure business margin and top investment and positioned we execution of strategy.

of growth, base to key priorities Our value ARR shift for with on business expansion outcome-driven our our main driving as customer workflows. customer retention and we improving DAP XXXX focus

Rule we from flow incremental X in Using XXXX. investments. to on XXXX over XX, margin, of improve As balancing XX we continue free we our to are in improved cash

numbers. We expenses, like would net income improve margin, discussing note that, expect to on and to continue when operating turn operating non-GAAP be to beyond. With free and flow, will I referring to that in let's metric XXXX numbers. cash to I this gross and

X% year-over-year. by X% XX% grew by represents subscription revenue million the the Our XX%. with quarter of $XXX subscription for million, was growth year-over-year, margin We total year the and year-over-year revenue for the fourth for for gross quarter $XX year, and which full

the maintain to expect level margin XXXX. We throughout subscription

our line and This down revenue to for services and partner internal shift XX% the professional Our last of project. in compared compared with QX was $X.X QX to is QX strategy outcome-based year. down million, to slightly

the ahead workforce group. to We now for by to sequential XX% our over driven the our utilization slight year continued customer to resources continues. PS trend revenue gross we a decline PS improve better as coverage improve the within forecasting as margin in QX, success reallocated are in

margin X% XX%, $XX.X million, was was XX% total up year. for from year-over-year. Our QX gross QX profit in up last Gross

maintain expect throughout profitability level of this XXXX. to We

For we a QX a we last seen OpEx, remained and on profitability. have trend in improving row, quarters operating X positive the our leverage for

Our structure were balancing enables growth and flexible OpEx representing scale profitability. million, expenses of XX% R&D $XX.X by revenue.

We continue $X.X have claims to of invest last expenses in marketing we our for XX.X QX a income now average the revenue, we in $XX sales income for last core action certain AI XX% of platform, shares diluted strategic I weighted G&A expense. QX million Net principle the of and a improvement million for in loss connection XX% Net was compared in core year. of million to accelerate This onetime and QX of from QX loss or capabilities. Sales million or in capacity $XX.X of XX% year. outstanding X.X% a data improvement loss to with like from loss was $XX.X XXXX. in fully of revenue, million year. GAAP share in to per to expenses attributed our classification last was employees. saw negative revenue, XX% year. lawsuit note products income of a year. the $X.X XXXX. is Net last an million that quarter QX marketing $X.X from in a or and nonrecurring our class of in this and structure, was X.X% $X.X of growth of QX were below in in excludes WalkMe to XXXX related last a settlement $X would were of or XX.X% million exempt of With the $X.XX to million quarter QX compared QX an million to $X.XX, of using million a compared expense income $X.X operating

$X.X improvement million in QX cash in $X.X from an a cash flow, generated of we $XX.X of QX, last and In QX the million generated free in burn year. million

expect level, quarter flow cash with last XX% seasonality positive cash will $XXX but we a short-term it and in management in was to flow, given year a the negative We XX% year. cash Our free deposits margin million the for cycle. On marketable maintain free compared our cash ended equivalent, securities. to fluctuate

to guidance. Turning now

growth in XXXX the services low subscription new growth revenue we to Given each on year-over-year quarter face ARR revenue, first the with our continued and in to quarter in decline professional we in headwinds XXXX. revenue moderate the net while in expect accelerate be a basis

will seasonality revenue strategy. with year delivery partner QX a we marketing decline towards similar some to our PS continue as transition show OpEx, of a OpEx fluctuation line Our slight the due our in from in plan On sales level we with to maintain and throughout events.

of overall the in slightly we range the in non-GAAP revenue income million. of of growing well expect We $X.X a to $X.X are revenue a for said, growth. With first and XXXX, at million new rate operating than while that our expenses million now lower to $XX.X positioned to accelerate range million business, our $XX.X net quarter a

range now year For will million. Thank $XX in operating take non-GAAP $XXX revenue to the of million of in the and income $XXX million expect And range we the your $X million you. full to now XXXX, questions. we of

will We from the Instructions] Berg turn now Wells portion from question Fargo. will to be first call. of Our [Operator Michael Q&A

by be Kumar Sachs. will question Goldman from Second Kevin

drivers this Congrats and about these some are help understand If key reacceleration improvement, between to on into the macro of in go-to-market that? driving layering new dig what just alignment, the some guidance, those Maybe quarter. in of you what's I reacceleration drivers. us on. what's either embedded can think key just the products wanted exciting

will Michael. it. take Sure, I

saw HX, see improvement churn. we script, the moving both gross ARR in new said and we as and So we to pressure on improvement in started forward on the mainly

as we on grow in the XXXX, as or second and ARR in can net ARR the revenue mainly new So the XXXX we XXXX subscription we're the in double said, ARR net revenue. net acceleration the seeing improving, if half new new see on to will we

will drive that we're ARR is revenue per as adding quarter, So acceleration new more the indicator. net the as ARR

And Helpful. you products just the on a launched. quick follow-up then

a -- wanted more In technology is strategy? Or meaningful I your alignment of you're the terms it be in go-to-market leveraging products? just a that of how to is that. on and clear

So And as looking main one things we are customers. the a we focusing of at always on enterprise full did, say, WalkMe as we enterprise and we're large platform.

feature full a mentioned, the So makes giving going to sets that action data platform, visibility, use customers. them we the case-based of a the as and what experience, from we're them, that's connection specific DAP

to to And So that's, approach expanding I to more the value customers, holistic we're companies us. think more we drive a giving how digital they're the would say, with those transformation.

So at entire we day, letting how do end of those with worsened our grow a us more did and and price we're to approach. in change [indiscernible] much customers we platform, basically the than pricing the flexible the

complete overall, a solution DAP. to So it's just

Our next question will Morgan Kumar Baer Josh Goldman by Sachs, from from Stanley. be followed from Kevin

thinking in I expectations And Have trough are wanted kind of of kind terms up touch kind for how to churn XXXX there and guidance? we rate. and of you net reached and the kind about your expansion? retention that implied of of what's guess kind on of I a in moving

Kevin, it's Dan.

and QX at it's think we tough the yes, say we're would XXXX quarter. XXXX. -- So QX I

So trailing we're on the data X quarters. showing the

ARR, get the that we're we to numbers at well. net least the the the as will X it going saying new expectation. as, double And retention That's obviously, net it quarters, see So trailing on we we're back. will out bounce show our when of quarters,

XXXX execution of maybe and and on and kind about of you're an quarter kind then great. kind how in in terms federal of how thinking That's update is And the how kind pipe of here? is of just developing the there

guys. We one, from that had good quarter that perspective a with take federal. can I very

always other And saw have on that in double is which in enough we confidence good the that, for taken pipeline XXXX. than remarks expectation prepared my You over expected, the has we're hear. to we building team that

big put the just excited areas big I operating I very we're It's said, investment So additional like and resources beginning, annual it's for a plan. us. about it. one highlight that year And in for of the in a my

Radke Tyler Morgan from from be Citi. from Our Stanley, Josh by Baer next question followed will

of in enterprise. are customers huge are saving so payback own saying seems they're an like adoption productivity And impressive. ROI, that digital hundreds attractive just hours, your thousands time, of quick just extremely Like reports your to dollars, millions

So over prospective to what main forward? getting challenges do with line? could the adopt And looking hurdles? mind, then hoping the the in that some and you Like of improve that help you in are customers to can through talk what

will I it. take Sure.

would divide the heard I I and So phenomenal, is few reports. X. to ROI it One,

education. and company category. why latest category, from IDC, invented call, in the and with a narrative. open of a market think is one lot there even I the is the we're the This today's We we're new

So something that's that down. we're doubling

we're started, the of would And piece and XXXX, beginning and was second to say was XXXX, near large enterprise. enterprise we our that I seeing results. end something the That shift the of

million just customer taking doing, is the laser-focused that, show not it's the So if having the we're seeing And that how much starting ARR. on product, it's is $X average company that growing. everything to it's over sales, result, it's the of they entire marketing pay And partners, it number, results. we're

at over up. staying is a $X us million, starting it's digit, paying So to not low when the go actually it's customer

So added that deploy. We to easier data more with we have added platform. ROI customers a is products lot allow to the measure work do. our pleased super to faster, the and capabilities We're a lot will that of of we

with to we actually start doing data strategy the products, today, have deployment where when of if and full ROI. it. a faster So you issues When full can have build WalkMe, a you in actually show to you're have content, you you you need a need

piece it live go at a with a group we Sunil goal We happening to X customers few our live to customers. trying And to have started go of set delivering and pilots as we value data are May expansions has we're faster. already between to show XXXX, is when we're that faster around third actually are happier. the fast obviously the weeks. X when And the have The

just focused we, put laser transformational lot value a the customers. seeing was of the deliver to are when results, and value year. effort how not when we side We I but as fundamentals as on the -- company, deliver how financial of to saw a on just a XXXX our So you business, the said, you're

flexible competitive Any Very it. on And know, you Got then your more landscape. any changes the just could pricing? comment helpful. hoping to to response

on pleased we performers, a leaders leading more, competitive the putting would we're tell same seeing We far And that more. star are effort we we're landscape. I growing you, category by We're see want so So the that. and lot we're and see category. want to of the to

And DAP, well. they our fact we And educating on a that us, doing huge still competition companies overall, the it's biggest we're and that for greenfield. are is need so really

pricing are start allowing did companies standpoint, So what we on to actually smarter. is, the we

value, expansion. to better sales the a actually path showing and So for cycle we have then the And we want land. shorten once we're on clear the

early it's the so So to data. launch We'd we're in far, the results. pleased it summer. still But with share

of JMP. Our Radke next Walravens followed Pat question from by line the will Tyler from Citi, come from

] [ is Pride This for Tyler. on Matt

has I what DAP been in curious the anticipate historically a see secondly, growth slowdown caused into Just quarter. should in growth? And slowdown XQ stronger DAP next we a year?

think we as accelerate And and net mainly the pressure will Overall, well. from the think all accelerate sales across that carrying metrics would will net down in it quarters, obviously said, segments, it's now the But we numbers. I in we we well those say mainly as So some And as as accelerate that we're ARR macro. came still it go as we from HX, as the new I was got actually starting ARR, the as new to our we're and up retention. think those said, will in troughed.

going macro Any forward? reads since

even an And better. it's us, tell that that solved. is that that after we, foresee just much HX, not you but adapt -- company, macro become would the in I I'm I tell I you So to Oracle to situation. for future, it's the would say a can as

standing and for the waiting So to we're improve. here macro not

technology We in we even downturn value have and economy. a bring our

sheet, for looking have Any in you cash of interested to your change flow lastly, story. over you'd $XXX at? technologies appetite areas million or free the accelerating And cash balance it. on that Got M&A? And be specific any

for the I way same. we're you And our would more category appetite the the at is us I the right We're we're massive. generating that looking it looking timing. Obviously, much would gives quarter-over-quarter. cash when tell confidence say stayed DAP

it, grow So opportunities, But headwind. organically. there this obviously, macro is there use. vehicle we you if was see we big a else when lot generating obviously, is how we're room nothing can in will And little I interesting now will a that a that, looking it's moment. confidence add that and a to that quarter-over-quarter. of I but tell would we're But quarter-over-quarter, cash, changing bit seeing profitable were Yes, and the at this we're

from Scott Our Pat Walravens next followed call Berg JMP, -- come by from our next will Needham. from questions

is Cole for Austin This Pat. on

about I partners. to ask So wanted

behind XXXX? So Propel I'm do is more those these tailwind can guys your And wondering, you big that to can business. better GSIs partners leverage partners? help are you how a manage there your in

that happy I'm We we -- one. more believe that of we regional partner absolutely we the Remember, just wide to [ ] And have variety we've Yes, do the support styles GSIs. SIs in there's more space. take can a that have got us. than partner

SAP, We MSP have we our relationships with relationships for with have partners. other example, OEM

all address it to of with trying Propel. we're So

One, support us. generate our from ability two, process. does two them us. they the -- us to be to Propel visibility pipeline for it the self-sufficient for us and for onboarding need things And and and it with streamlines them gives And clients through the the for they that

partners. was lot So But overall to done. for get is We we my in We're plan very on improved of and it. it performance pleased. and this a 'XX and required was time the needed businesses that effort spent something

an revenue like that And then more have eye we is for 'XX, touch. to

us concurs, go very to XXXX the an relationships the they else, to touch, the touch almost And for an SAP to a all have guys selling on that is light kinds more marketing in revenue the as agreement and light from implementation. but land revenue do the example do, that in use So eye they all we sell XXXX. deal is try those coming the clients agreement in all something and of of and working that an more see we're with paper would the be with concurred we to

gives it. that for hopefully, feel you So a

our And come Scott Berg will last Needham. question from from

for the Congrats on This the strategy kind is Scott. sales changes sales quarter. on you maybe in go-to-market how earlier. of wondering And is just the the you was Has change was talked if Michael adjusting energy improved to some about force the or the could on changes? of initially double-click I shift since Rackers these announced?

who energy from what tell but really rare the associated are for with sales away I was come not sales the me us. the would with charts the kickoff. let impressed take saying, people is when kickoff presented, it. and of focus you was the not Listen, I off It's energy the only sales hey,

ever for of the in. one I've of end So January, us the at best that participated

So very with pleased that.

those especially that is at culminate to the significant do then SKO changes making not easy announcement. process year And and listen, changes, when changes, you're throughout

they've got turned to salespeople And listen, make they what a to that They how understand be compete. They they success to and plan And customer to want with our go then So you at that, good. make our straightforward. want really sell. loose did sell. and sales kickoff want pretty sure with to want alignment partner to good money. are team know product They tell we a I good services what our counterparts and would and professional comp was that's to

mentioned a But to it double-click I for prepared things my that, of you, remarks. on couple as in

But [indiscernible], we it that are businesses a that It to and related is workflow problem the and to of have First is. whatever it support. about we've always or thought led terms a that workflow-led moving cash for that we workflow obvious, discovery foremost, clients. business actually seem may in a to coordination applications or implementing but

and they But workflows saw our most profitable tend They that cross what Our do really, business that clients reason. largest, DAP we really one they're for are are to stickiest, way about DAP know clients? applications. multiple they are important and our

products you probably you're your in sales oftentimes, not a or got of products, organization, just other DealHub or cash burn... order If Clari to Salesforce one a a involved you're Gong those shop, handful or of

workflows, for personalized automation both they multiple support the the cross applications. at real-time good we're and So

style. we create are it. important organically. it's we're We that understand tons like clients successful customers in work delivering implementations, just important do and of And and just easily it [indiscernible] didn't well, it's that Fargo, look So client, we've not for we've we statements our the talk back did to of really large us. the it the -- always talked Wells for to really, haven't and to the in the got talked of about where and client kind tie past, in naturally client tons we to but sorry, so the value implement done that but We've when We style, we client who did really, systemically. that can partners In significant it at them. places get from really

running reports and fact of got so successful. up One XXXX we've to that you've good major of operationalize we're we've to a but done a we of I've so year. we're in of doing great that's a the you first And highlighted excited land sales And after have what it's with our educated set Hopefully, why And got that's about 'XX view the on and stuff. got the it and the But partner implementation a teams because great makes second now to Nagdev, to client, it's that and XXX That's the Sunil half you. what of work chart, is go client it. kind into that they're that for in on in coming transition systemically. got is straightforward changes those We that function just us got sell. to that's the us. helping more for behind of heavy who that sense from changes kickoff. is And

back our questions. that yours. it [indiscernible] you, turn remarks. Dan everybody, will And now Dan, for And closing floor for the section. I to Q&A Thank Adika the over -- is will

Thanks, John.

for over want I to thank generating amazing. $XX execution in XXXX, in amazing XXXX. from So moving I employees my XXXX That's to over in our in as absolutely said script, $XX million million losing

know hearing us. So you're guys, I

call you you participated. for believing who joined thank the vision. quarter. And And support See obviously, So thank for our partners, thank investors, and you. and for next customers, the everyone you