Zix (ZIXI) 5 Aug 202020 Q2 Earnings call transcript

Good afternoon. Welcome to Zix Second Quarter 2020 Earnings Conference Call. My name is Michelle, and I'll be your operator today.

Joining us for today's presentation are the company's President and CEO, David Wagner; CFO, David Rockvam; and Vice President of Marketing, Geoff Bibby.

Following their remarks, we will open the call for your questions. company's remind available this in for Relations of to recorded will the like section made and replay the would everyone call that be Investor I website. via link

turn Now I Sir, proceed. call to Geoff please the would Bibby. over to like

you, and you our afternoon, for call. everyone, earnings quarter XXXX conference Good operator. joining Thank thank second

results those those differ that risks the could uncertainties to press from actual update also no of note conference important company that in and provides of financial materially closed is the the forward-looking of differ for copy Please release forward-looking Dave filings such this Rockvam. of of CFO, call the from in and XX-Q results forward-looking undertakes recent These performance events Wagner; statements subject with website Form today's that our most caution those course the SEC press our ended quarter note will we today, On factors cause second of at a obligation the could cause examples to statements. consider We the future we today, make market forward-looking June Dave results The the company. announcing you Investor to to It's materially www.zixcorp.com. a Relations in issued statements. have contained are section call, regarding our actual available statements risk Risk the release our the future to that statements to CEO, the this XXXX, we in After during XX, the our section and risks. which and in call. Factors XX-K and

prevent monitoring the measures ended our we the the the COVID-XX COVID-XX in described and on impact the as in business company demand both in various of in operate. The has and its such to fully ability products, on our changes behavior, actively operations and spread and and situation unprecedented customer June their disruptions been more ways, suppliers partners in spending Form XX-Q volatility quarterly travel. work the its the from employees' our to on and the our third-party patterns, our causing of including XXXX, are company impact and XX, quarter business affecting limitations in for world As report payment which

in circumstances on We results extent and impact on will unknowable and the ultimate the over length These of dictated to will and factors the currently response. depend the of our it the challenging also term. near our more taken by future these actions expect operational the continue, pandemic significance the be of of estimate COVID-XX particularly make time public business, financial management which government the duration performance and for that

Investor non-GAAP are we substitute We superior for financial and non-GAAP Relations in results. both company's consider call, intended measures release, which you isolation is be our the found the be today's in the to when considered GAAP can not or press performance. section measures of analyzing Non-GAAP reconciliation encourage to GAAP present measures certain financial to GAAP included will to During measures. on from, A a our of site. all

to going I'm for over opening that, turn the Dave Dave? remarks. call Wagner to his with Now

the and shift digital these with I'm and importance objectives journey the compliance continued This all continues customers financial our exceeded requires that thank In and we remote Thanks, and benefit Geoff. On an and adoption pandemic, platform profitable has component dramatic triage supporting in shift us quarter, time, our transformation measures. service and joining partners drive to transformation. during second for QX time our macro we compliance to businesses report tools Good around comprehensive the volatile quarter. all to proud afternoon, you, IT The positioning, expertise. sizes. from and to and drive we to times, empowering for issues The us and exasperated today. pandemic to the to our operating abrupt resiliency support productivity everyone, level, for provide more growth, and technology, more a secure of cloud our the further than our partners work customers' enabled are essential work our The resources emergency model of digital security the necessitated the lives, of customers assertively even becoming customers' work of strain solutions energy, and of journey. remote and compressed ever Zix of its the cloud dramatically security, abrupt of Under digital global has advantageous strategic line to before.

digital are demands tsunami on the work business partners face responders, to a so Our continuity. the of placed speak, first support in ensure to and them of remote

As more CFO, his new to value. return provide we the solutions and empowers secure and partners Zix's platform I call Dave our the deliver value Cloud matures, remarks, remote business will our turn modern details work add will on where can even discuss expect our Dave? short, in In on to focus compliance, to to and workplace. growth our increased Rockvam, our now Secure security drivers core over customers I outlook. areas financials. After

as footing absolute profitable delivered Echoing quarter, on an we you, us and as financial have Dave's of on to strong on back afternoon, EBITDA commitment during we basis, into adjusted head Dave, well both of remarks, guidance everyone. growth which consistently the our as year. half Thank second the our good generating the

the $XXX.X At up last year. totaled QX from of the in ARR XX% numbers million Now second let's talk about end of detail. our our quarter, more

driven on modern growth the customers' workplace, to move ARR which emphasis a Our by continued in puts heavy to adoption. secure our be continues cloud

over ARR. are comprises now total our QX We of ARR XX% of year that last grew pleased XX% cloud-based and

totaled year. New customers from quarter last up X,XXX, in the of X% QX

that the our beginning base renewals which new were into plus For the retention, quarter. installed the represents renewals just at second the by over quarter, dollar XX% available the of we had sales net divided

expected, later this As on will last rate And of down call. our from quarter. XXX% prior XX% touch just today's the on is run Dave over

that pleased in fill role From year. with environment, rate range our with mission-critical exceeded customers. second rates at in we guidance retention to a Revenue of increased grow were our are million revenue our good believe our from for able quarter $XX.X to which $XX.X the and million customers, ARR demonstrates We the last maintain solutions double-digit second that unprecedented million we the our same for quarter. of $XX.X quarter XX% the are The increasingly, to the This value must solution don't means that is a meaningful. Secure to we compounded allocated as everyone solutions area. data able remind Cloud. solution each our business become To the no with solutions. point, our that to be we This made our bundled a judgment longer that sales the manage to even I launch is use by more that want category perspective, compiled way and has in estimate this

the no Cloud our longer in to customers platform. the launch will is of for the for information platform. Cloud the legacy shareholders the the ultimately, With great available. came customers AppRiver on new were Secure the All on transition future QX, think of Secure moved business customers, only of that to In our Secure mind, platforms that value, but the will not Zix's this provide new Cloud, side from platform be onto well. and them, with as and of majority So that we partners

P&L. QX, mailbox, XX%. ZIX saw is In that July, the historic already of the add X.X platform makes us the more Secure currently have providing to customers more Zix new company. easy to number to and on to Shifting above to this back all partners side, On We our bodes well of well Cloud, and up onboard solutions, per across Zix average averaged ultimately Cloud strategy strong, a Secure those services we XX% valuable it we stickier customers think customers. and user-friendly our X.X that in for making new the

lowering exchange higher termination of was encryption increase which furloughing employees revenue dollar profit QX in mainly their second flattening in on-premise of last total hosted or million on the mainly or Office from and seats margin gross slightly due an Gross revenue QX of margin mainly impact COVID. came slightly to $XX.X and the This attributable lower the very additional to $XX.X combined or from was XXXX. from million of primarily due XX.X% customers quarter for of improvement to were XX.X% adjusted ARR Our quarter the down was total of dollars which customers. for revenue, gross licenses was dollars. basis year. a The revenue XXX, This with

GAAP growth. Gross our Going emphasis margin intellectual we the in launch $XX.X QX help higher year, property balance increased to dollar gross quarter. in Cloud last Secure and forward, million of QX we stock-based a putting Zix and on of are the in our with year expenses down of were partners on will due from mainly think sales basis this compensation margins $XX.X the to severance million

Our to completed of XX.X% quarter of adjusted total during primarily for due X.X% increase total the million revenue certain XXXX $X.X $X.X company or R&D projects the of compared for year-over-year QX the quarter The expenses million in dollar the of was were development second or to quarter. last revenue year.

of and nature due adjusted R&D higher we R&D a expenses of our QX our expense expect QX on QX the the lower in in to bit to slightly be actions We capitalization based expense software took little projects.

having for selling to partners, adjusted acquisition per and model total was in the our lower our over lowered our the and selling or success quarter, QX expenses marketing or compared marketing strategy in from and acquire model year. customers sales or revenue the from and CAC, of of wallet XX.X% as expense which X,XXX quarter go-to-market in last $X.X continued Our $X,XXX winning $XX.X of of shows revenue customers, new This low-cost share million our our to revenue of MSP percent cost gains total are million customer and we validating were customer. high-velocity XX.X%

of were million year. of a or reported total and On in loss a was second the diluted share. The to quarter common in revenue net quarter share loss $X.X $X.XX shareholders recorded of million $X.X loss we last diluted per a million of QX GAAP X.X% basis, or of attributable X.X% $X.X a expenses fully fully or down revenue, $X.XX loss of adjusted shareholders which For to net of total our for million or loss $X.XX general a common last a QX XXXX, administrative to attributable $X.X from compares per year. of of of the loss

million, and Our or $X.XX or million non-GAAP our $X.XX second deferred was per excluding deemed guidance. $X.XX dividends diluted $XX.X an in diluted our to from was of we tax share, finally, fully fully adjusted $X.X we QX income QX quarter adjusted above share $XX.X which And that million EBITDA increase year. in before $X compares year. totaled per last net million This last QX for reported reported of XXXX

XXXX percentage QX second adjusted of $X a Cash operations QX EBITDA million to As an for revenue, XXXX of over total was million, in QX of was XX.X% compared flow $X.X XX.X% for the from last of increase year. quarter XXXX.

ended our year, $X.X we have in our balance cash to $XX.X through This employee Turning own also program. of part for available and credit our awards to million borrowing helps does We repurchased the dilution. cash equity use approximately million of quarter This our $XX million revolving shares with but as our sheet. limit facility.

$X in strong, end our the predictable against In of full year of out net on outlook debt our metrics, million to $XXX.X our of the free April, debt cash terms million and structure we flow us coupled XXXX, The the sheet we balance capital EBITDA million debt $XX annualized and quarter. costs generation took of positions favorably with $XX had adjusted at million for obligations. business our of of

internal-use million, at to XXXX QX, a XXXX. for of guidance of software Our purchases leverage us our maximum below the year-end putting and were quarter and other adjusted X.X of the approximately permitted consisted leverage which well of $X.X primarily development. business ratio $XX EBITDA million CapEx of $XX million capitalized for X.XX second ratio of end normal implies intangibles

other the year net full to $XX $XX We cap for of intangibles to million expect be CapEx and million approximately software XXXX amortization.

expect We approximately to depreciation and for adjusted also XXXX. $XX amortization be year full million the

XXXX, year. of XX, of $XX the which million $XX.X a last decrease of June X% was at end backlog at Our million, QX was from

business. model, judge as As more to backlog a as customers turn for metric a delivers is moving We progress to our monthly billings metric we backlog. the lower more our our previously, are prefer which mentioned a not and and of better of in health strong look to growth which at a

XX% up year. $XX.X gross to For XXXX, in from quarter the billings last million second QX total of were million $XX.X

growth XXXX, market for and implies range of Now currently $X.XX quarter is turning same common and and we a to Fully our XX% revenue on GAAP between share to stockholders expect year rate of to expected In financial the range XX% based QX, loss $XX is which $XX.X third expectations. compared in quarter. to a per ago million attributable diluted a conditions current which loss million, to a be of $X.XX. guidance loss the to

fully forecasting attributable share are before $X.XX. and in non-GAAP and common We diluted earnings per excluding $X.XX to the deferred dividends adjusted stockholders expense deemed range tax to of be

visibility, for have We range full on XX.X approximate approximately total of XX% we for be XXXX. expect to share the current our share figures XXXX. EBITDA year of million revenue. are on count based XX% fiscal revenue adjusted guidance increased per to QX our The Based an basic

We an and of between XX% compared range and and are to between revenue an million, to organic XX% increase forecasting basis. XXXX to $XXX million currently XX% representing on $XXX X%

an our XXXX. for of XX% cash fully share basic million attributable count is increase the million are we flow attributable and between $XX be loss generate GAAP a to forecasted fiscal basis, a expect figures on or to adjusted $XX a to $X.XX year-over-year Based range XX% be million We share to and of On between range non-GAAP outlook, The XXXX. stockholders loss expect per is total between per based XX% share Adjusted to current for to in on a the approximate compared strong approximately diluted to of expected XX% to in share XX.X revenue stockholders $X.XX common year for year. EBITDA $X.XX. and of continued XXXX. in earnings $X.XX of per of XXXX to a common range loss to free

my approximately our $X.X million facility, This in interest credit are down is bank financial on lower from rates. expense estimates We completes to forecasting earlier interest which due summary.

analysis more plan we recent to which investor our Dave? to website as detailed a XX-Q, to by presentation. our For please file Also refer our Relations results, release well earnings as financial view XX. visit of today's August Investor most our

our our execution of I growth of in review Thanks, Dave. now will strategy the primary X context drivers.

the Zix growth wins customer first both acquisition. We sides AppRiver Our the had is noteworthy on and driver some the in of new quarter business.

diverse archiving, quarter industries, top in care, for direct X of health a the side, in including the proven X new X X far of which both included changer in data on First, top our legal, to X be wins has in wins in customers. were a and of these included our game in wins and set migration-as-a-service, construction manufacturing. Two X

This was a in experienced for that win advanced in that March a following down construction included customer new largest for QX their attack Our in solution encryption protection. looking advanced threat they took X-figure a a and productivity, is week. threat proven customer network malware deal

Zix products care provider new a with was QX per new customer phenomenal X that wins. in top customer because in again health support. was our X our We win averaged major of Another customer attracted to

in MSP than net XX which was total in the the QX, over sales more new business brings QX side on we and full In to up of QX, products. XXX record across our the of transacting and X,XXX a continuing from our partners AppRiver X,XXX at total February. achieved were trials, indirect QX, we exceeding we trials business suite trials end. of we protection On driven quarter under threat the net advanced X,XXX just of customers on in record by The MSP legacy archive and XX,XXX. to momentum, we XX seeing side, the In increases new established approximately our primarily increasing by added count in our added bringing of the our began side record partners. June, direct encryption, in per customer prior both added and week, monthly Late

advanced in of threat enhanced our to trial also which contributed localized U.K. IP IP in launched the activity. trials. trials XX% also increased June for We new total the June, were product market

our partner we've a trends business In terms large base, overall since time seen March, substantial stabilization of frame. April the across

from our an in new seeing slight we increase we additional reported QX you earnings April, uptick and customers, churn drop-off If a call from were in May, in of approximately business recall in a XX% that in existing customers. real

second began QX As we the both move the importantly, to total, moderated for and increase to quarter, business and off QX, through business almost the XX% existing customer In from new customers in existing increase to customers XXXX. was churn more the recover.

add-ons with we But the sign. the the a government. we fact term encryption-only the X is in focus, one top prior was sign. the remains and encryption our healthy XX healthy consistent approximately customers were pre-COVID work increase customers top we customers. help and we're X seeing hit business our also base macro business remotely time sales the businesses opportunities and contract in more to health is are backdrop July. existing X and environment, X and has which remain view a loved in and net seeing would and core the partners now second to periods, In add-ons in a resulting add-ons. July, is teams QX, with are which to guarded We their by of the through Cross-selling and strong was The digitally the direct growth we segue to average sales months, largely we seeing have were our However, transform upsell pleased a to that accounts. June June are recovered of have in levels. into is we the All think bar our success driver, care of recovery top existing in our good to That overall in but

side, MSP for the the customers XX% to in sales the XXXX. XX% MRR of increase compares This in On to accounted only quarter. existing QX

call, of experienced deceleration orders from and existing customers March on previewed As April. we a our we May in

hope, though, recover our to quickly. consumption-based, we month-to-month customers our model As and allowed flexible, partners billing

of For July, demands from MRR this it. served Office for customer anticipated has always continued the existing a from work existing month XXX, also cloud are in seeing was exchange COVID in better the to work-from-home hosted In by accelerated we by incentive of increase driven migration our XX% Microsoft's that Teams from customers. We've base, the adoption. but and migration, home and customer are

third driver, retention. our to increasing growth Moving

company retention QX is primarily prior XX% Our the that existing dollar to XXX% net reviewed. in total sales to quarter. was I This to compared reduced in customers due just

work. addition, In in lost business ARR, but number trends modestly we of of and terms exchange terms our was clearly that the both in very encryption on-premise cloud COVID has encryption as OEM Churn customer large in is hosted secure a meaningful up remote moderate of towards and seats. accelerated

encouraged are company the about even launch customer for initial net base back prospects. makes more of successful that long-term the acceptance positive XXX%. our us over month of our We by total The enthusiastic growth and Secure retention July, was Cloud

doubled that like and compliance, accomplishment would foundation Board, values highlight are the I Building the months, closing, to programs, have on the of Before really and proud focus an ESG. upon our XX Societal leadership past Environmental, our or on team in Governance we and down I of.

the guides our of ISS. we QX, daily This have the recognition performance established basis. a practices received to Zix decision-making and that on prime ESG speaks framework quality best for rating from corporate During ESG a status

to top are as to for well of with in respect publicly stakeholders of traded which companies all we We our we bodes the of rating that places proud this think grow. us continue ESG, decile

in positive continue uptick encouraged indicators by team's the business and we enthusiasm, and experiencing momentum overall are July. third energy our into development engagement ignited our in forward, progress customer quarter. initial providing we're QX we has in activities The and Looking the as

macro However, environment. we remain cognizant the of the in challenges

challenges. is with Some of and struggling, health our care our smaller customers are unprecedented system dealing

transform to successfully customers by these their are the digitally businesses. we opportunities the excited help cloud have and transition We to

than results we a in we are April. demonstrate now that more feared Our planful back and in state July much QX in

financial are foundation. We by also strong encouraged our

Further, generating rate are effective and with on. helping we our We the we evidenced on $XX environment, partners, year, deliver strong million strategy them transformation continued credit acquisition. Digital resources ability workplace. a we Secure remain of achieve Together positioned our be available ready to provide leading to on significant right reiterating in Cloud confident our to we customer remarks. adjusted questions. is solutions flow, cloud capitalize accelerate, of the That our new are as the this free in businesses modern are well email We and the outlook continuing our for facilities. cash have over remote secure, and becoming provider the for for to of Operator, concludes by EBITDA open compliance security, and prepared of trends work of call is our efficient productivity vision to businesses all we're our and sizes. need cash

[Operator Instructions].

Now our first question Chad Craig-Hallum. Bennett will come of from

than about those existing we rates -- you of or speak, some think, net X.X in of so of we like the X, the seems see lot quicker talked XXX%. too where over in back SKUs, seems the you early new would it So interesting commentary back I June Cloud don't actually this are the it's to we're things can thought. has to -- Obviously, of I too to whether attach adoption -- to phenomenal X. I it have early at? rebound know, on the net are kind about of quantitative I point. mean, metrics the qualitative normal sounds want anybody yes, our where but first been get add-ons is think to Is reacceleration, it that but over guess, environment, unique look month a I Secure I and into just a like, now expansion, mean, like then It July. and to

Thanks for comments. Yes. those

pleased really are with Secure Cloud. We

And that then threat that's trial about the had relatively pleased June with we've they really talked the we're that's talked exactly about, quickly. That are as things recovery by our had really records, archive billing the rebounded draw We April, advanced solution, encryption. nature being driven activity the we and of seeing. quickly, what the the have in down monthly and

seeing really new So that from the customer net XX of channel good we're partners in, leaning XX. adoption, out new we're up

is those Chad. good. but So drive are are digging metrics, into environment The really trends attach great, our not and team trends good, the our is

And just then one the commentary quarter. follow-up, in your you on maybe on saw churn the

think of I we're encryption on-prem kind that then you percentage is the of normal, kind I kind guess, insight, about what today type exchange-hosted the to that, maybe it's give talked you churn again, or the any of maybe and can of churn. a represents there? the of because kind back mute but risk business of point

let the the is great. numbers. But well positioned I'll news give on the side. Okay, good we're cloud really Dave

So XX%, from down revenue the hundreds, our changed though was to net in tens XXX% of and was basis even the points, quarter. churn not customer churn -- the

rotation, environment. on-prem is shifting And XXX, platforms the of the case kind the Office from customers the a those terms us, margin-neutral price to in environments staying the so they're equation encryption cloud what the get margins of impacted. we're Hex the constant, to with but are seeing relatively technology it's In but of is price

the servers. mess don't go trends aware want been people we've of with happened in business. those COVID is What and with that So in IT are to

the to us to to take out cloud. looking our take they're of And partners and that so move really that fully the equation us -- and to

that on. capitalizing that's rotation the So we're

XX% like is cloud-based -- said our what now. of kind coming from businesses we the business And Yes. of numbers look

the So million. if of which at to million our be $X you that defense our base, total is mean look that other $X.X key is would line, -- consumer product part would which

rotate to for on-prem probably to exchange XX% all through will -- So not you be there's we of And our or hosted that that, of move to either us cloud. outside Those under them lots losses, need our right? get be from won't opportunities to cloud. XX% those

think can the our move we launch. over well those if with over Secure Cloud not So XX% more, cloud, to of we time,

Security. King of will Colliers question come Andrew Our next from

of So feature Cloud? the it versus give versus legacy legacy, functionality being looking And XX% cloud is to there? can an board choosing of what's at why the little on customers or of Secure is us secure bit idea a that more going on you

Yes. has with in lot launched officially Andrews, Secure do the our that A of timing, so Cloud mid-April. to

Secure So there in bring getting are the the to transitioned the on new that Cloud. customers into Dave just sales the quarter show to where bring second momentum cycles were dedicated expect customer we're sales some particularly and long July to cycles then of still we place in number all able customers. the we'll as over shared the customers zones, time large for our weren't

Cloud them mail a vast want Secure Some indicated, of our coming to Dave now. of customers, their very way. directly keep But majority on the flow in very are dedicated as

even get in XX%, for in And Cloud-type timing Yes. that be those Secure you pulled And male a was that to even on it said, a lot allowing have caught up tiny going of type that we're yes, customers a in if it that back part. aren't tiny, -- numbers. come further, little Zix bit we exactly what that Dave customer

of Dave that go you the for that in the build on to parity take are to as the full on-prem and Cloud core into you to out, quickly. more we those pretty the some up XXs small get feature were feature And if we're products as ones the reason So continue us functionality -- not it'll may come on the into get on then said, of just staying older Secure XXs And be, maybe a on that high across. customers on-prem few there, some customers or Cloud. to on we'll get Secure those,

to the of year. pretty be by a climb continue to end number and high that expect we So the percent

on you could then conversion Great. on And of dive COVID a the on in the to trials? bit the little impact

Yes. to terms to continues at Really of the we to that continue the conversion exposed improve are perform more IP of partners converge. rates, conversions, as Zix the the right and Zix more to in IP, prior continues

up conversions through So and then And we was the we've into and month tough. seen April in the July, Again, strong. the obviously, talked the trial that real picking June trial March, of June. are May that about record activity,

will of question from next Nehal Capital. Our Chokshi Northland come

Nice come bit end. and a range above the to of little guidance Yes. results to in the the higher tightening

So that's great.

to that want I somewhat net mentioned, -- the mute dollar I here. XX% you on and stick So to up, it's still to want back of double-click but XX% as guys expansion some to given gone it's

mention in large of factor OEM the we more was Can much did And a customer. that why give play an lost? downtick? that a details another of You And impact customer? you was about how little loss it that did OEM

Yes.

was -- it OEM, because user very So price an low. was per the it through was

So it X implement I it on it but when we that was product a our through -- products, implementation an XX.XX%. implemented. It was get a account, below and rate we always had is We it. or was sell users not figures, ARR quite of number guess, OEM --

of getting about One good that our implementations partners OEM was not done. nearly

so making the and outfront -- that we happen. the And -- OEM. person to weren't were We

So partner. that renewed it renewal was a X-year didn't our with get OEM

increase to given That tough. existing customers is do Great. the macro pre-COVID odd recovering what driving net seems think a that Okay. to pretty And levels? this you bit remains

Yes.

two things. think -- I we're

knowledge small around are we're health hospitality box, have lots the On care business and and e-mail because These workers, we're even of not because decline, we worker. though rebilling customers.

a at even smaller quickly. remote then from -- worked is users we allowed seeing that be so to getting to us lose we're customer. lost home. the customers, where are had then And businesses And recover work, all didn't more we contraction, work set And we the

need accounts bringing secure partners, we our especially effective. we're on to modern And new offer MSP are XXX so the that on Office workplaces they because and be bringing

July not is the it feel out the position. easy about. we're we And clearly, think rebound, good But June, right we in So there.

[Operator Instructions].

will of Our from Wedbush. next come Daniel question Ives

on just the question. follow-up maybe other So

and June, In guys you've marketing that trajectory, seen of believe of from you terms natural anything are -- you few just it's there months? attacking a the last rebound and just July in terms what or customer is doing as different the campaigns,

and COVID, really them. like part just how really give done well. and product. We They've rebound Cloud from they're we're it job they've are working a lots where and executing team Secure deliver. and the launched goes sales and leadership especially also is focused the a what partners the And I really delivering focused since it, asked to credit team. actually they've focused give of and nice natural spent paid, measured year think sales too. activity it's to gotten Trial of -- that or would all product I the positioned. I credit, think to on gotten we're a and and Cloud with to us Secure We

-- as we to the Europe our causing for that in follow-on the At to delivery -- the value head for expect point, of especially summer threat lot enhancements introduced the really continue as we to an our through capitalize the uptick, to into in are the so And we've partners. fall. continue uptick advanced this MSP product a summer, we throughout localization causing the really and

Okay, great.

forward thinking terms in in Now and T&E just things in there's temporary that the are sustainable? term of how terms longer just about versus going of interest number a cost that the are lower you more maybe environment, of things, given structure, obviously,

Yes.

it you So work. earnings at line be really our that's made down the the we expense that at look was way we or think We'll back, be call, continuing being don't the this We're last and -- little things road, meaningful just and are but of prospects. do safe, right partner see we don't but leases a when if but the I good We'll in for safe, won't office bottom will size until year. they time come with pleased showing that conferences growth. profitable when safe it's up. to time, calendar there around and by think it's when that to and through reduction new the really engage out the as effectiveness driving travel it's remember the spring we right time a remote it's

to this this session. question-and-answer the call remarks. now to turn closing over our At back I'd for time, management concludes like

forward look Well, thank attention our and again on you QX you speaking all in earnings to with for your and we days. time XX call,

joining Zix XXXX today for for you Second Thank Call. Earnings us Quarter

disconnect. now may You