Citrix Systems (CTXS) 23 Apr 202020 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the Citrix First Quarter 2020 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Traci Tsuchiguchi, Vice President of Investor Relations. Thank you. ma'am. ahead, go Please

Chief good today's and call. first will Chief President the and Executive Arlen joining President Vice Participating you us call and and Henshall, David for quarter Officer. be Officer; morning, Gigi, and thank Shenkman, everyone Financial for on Executive Thanks, XXXX earnings

under website. provision posted will remind differ to you subject materially the from today's conversation we Actual Please quarter uncertainties. law. are letter like note have These that anticipated. results Harbor to risks to expectations based I'd earnings forward-looking the statements US securities on made contain could and first are of and our our Safe Investor Relations statements that assumptions that those current

earnings differences SEC. reconciliation our the filings earnings defined by can website. various as our will page of our Additional at information concerning end non-GAAP the are the these Copies Investor the today's the on measures be and we measures SEC's and other SEC and A today's Relations of with company's letter found call letter Regulation or of the factors discuss financial from financial discussed non-GAAP in available Relations between the is Furthermore, on website. in -- website Investor G. on GAAP highlighted

to David, Now, our David? President turn to like it over Officer. I'd and Chief Executive

hope us. Good time. everyone is that morning healthy joining staying safe and I you this thank and during for

a due to the market our after moved conflicts call we’ve occur the that been tell, earnings the can week. companies this typically concentration to to you scheduling market before As that close have of report opens decrease

that critical importance the had be as morning, a first for reflecting unprecedented business quarter, pickup mission general very we you in have efforts. in our no saw our as nice to to in So to Citrix strong that doubt of earnings really work letter There's from a business remote as from a pandemic, result of continuity truly benefited customers released demand all in businesses. this early near-term we our this changed the

that view employers light. through will longer importantly, way a term, which we believe all More in employees work very different we and the

Over our the recognizing around organizations to a as world are that be trends cost these secular flexibility. believe will the to business long reduction tailwind run, benefits productivity, the and operational employee we really

said, of XXXX, certainly world. remain as output for the unknown balance due to impact economic around on That cautious going to consider our we COVID-XX that all the guidance financial is the have we

as as near-term However, based full-year end on quarter, well EPS. and raising first the pipeline, visibility we both into the the top outlook are strength our of our for revenue of

continue assess our comes So, we're economic for to of to scope life. the year as of second more going course, to half disruption information outlook of on the the

talk happy now it we're that, with and questions So the up to first for through quarter. open

[Operator Instructions] Wells Winslow from Fargo. of Our question first comes Phil from line the

line Your is now open.

if the are wonder QX. David, for have Thanks color of guys Obviously, question. question seeing into You a you're your just what give And all current you I my your to a quarter strong you in in of can for Yes. and families to that and healthy you best hear team. good wishes you. taking some results. first that visibility mentioned some the month? sort

one April Just just quick follow sort us, then maybe compared March to of up. and for

when surge going demand. was step at were the the a that you and back everybody obviously they to at business I'd there Phil. Sure, say March, top list, have in continuity to put realized look on QX, that if

So few we did things. a

for we February did of this. So back and these into prepare actually looking January latter part the to

limited very SMB number base of capacity licenses for call quickly access, customers to ramp and offerings our offerings, So other number things. customers them unique simplify for just of in installed offerings first a nonrenewable anticipation, to security, use with, a we we'll created etcetera;

so a in bit April Depends as a and well. and March continuing throughout pace. into geography uptick of terms by clearly of little some lot And the rate

If see very was EMEA and U.S. a across a results our over one you'll well. the more continuing quarter course general bit of that look based the see the and geos, on strong at you of as APAC results that this I

you are And term, clearly be to I put in step limited. to businesses. general place in going give QX, so companies and I connection and the realize the basics. Citrix but coming a will, that back chat they of app look overall, if that really the quarter, to somebody think to at activities triage, continuity or I'd ability just a mean, customers, really say, email the is in Medium important continue not when we incredibly business lot video related companies just to is

are now hundreds and on hundreds runs that we so having And people and stepping conversations applications. back business about their realizing of

important. Network also bottlenecks, are things So complete types continue those to the a going need raised. for connectivity, be infrastructure more to of is

So change just the -- modestly overall infrastructure. that plays our QX the position and in But the beyond. I'd will in Citrix customers say critical focus reinforces

And follow-up Great. just to Thanks, David. then on that.

and that strain place from about acceleration on out? If With shift been do you of see obviously, on-premise taking that partnerships one in play you some and types, do the an is maybe of talking things cloud about years the with to past the the think is will crisis data how and Microsoft. to the the the you’ve shift of centers, that deployment you is your several sort cloud over think

a that X but to on-prem. today, over Two I mean, in have on-premises. in XXX a still have base licenses at million if we And licenses against specifically roughly the and that balance you cloud million things, Bill. our you look is such we business QX, large

general, crisis crisis expansion flexible working. SaaS, So These industry, hit. and the that this trends for are we think seen to remote our of that business, in already really just we've whether were going that lot in this sheer adoption accelerate the overall on-prem, trends current more I the that a saw in the place across before is is cloud volume. But that

because I and is think to a example this realize just those -- and trends they really this models. overall an just a move business this the of businesses forward many that new these to were as event, technologies isn't will of reasons an serve accelerant one-time adopting the continue

Thanks, David. Great.

Thank you.

Our Bank. next question comes from of the line Keirstead from Karl Deutsche

Your open. line is now

a elevated collective this Arlen. David customers quarter portion licenses. levels those of questions. that you, could to continue ask assuming or taking you, a to and XQ mechanically use will advantage Thank at of to Dave, wanted I capacity Citrix, presume normalized help they're one of capacity I maybe for so congrats as new couple customers to plays deals, crisis. one limited on these out and describe operating you the how for phase price many more you the efforts programs for have company you you, Maybe negotiate through for to presume to I out back Burst point. going at come

So Burst maybe mechanically XQ your you normalized the a you to a X% of down out. that'll this could talk will could guidance growth back Obviously revs more through how work. end decel capacity rate. play how describe implies But maybe

about the that you're the world to I you very, think matter going I When specifically guidance. mean, crisis, A economic into orders mechanics, assuming is the lot talk be, our weeks. everyone uncertain went this view a of backdrop very shelter-in-place how Karl. the companies Sure, right. around were environment against a forward should of of

I now are that, get around not to globe. to realizing distributed the normalized think environment we're stepping vaccines people are a many back widely going and more back until

execution work more years. going them even permanent with or our And Burst operational really cloud licenses backdrop, quarters licenses. capacity becomes take be that quarters transition of that about believe helping So long-term few as that into the is and we customers. some decision over next the for certainly to right That's to part of these a

well. programs And do place so put as we'll to in that

the some Okay, reported that great. was upside Arlen, to then reported other quite issues the Arlen. get maybe And those? year-over-year. cash but the causing you the this deferred might Operating is Do could $X despite lift. feel not your there few solid, only per lift. you still collection response flow of be revenue up you. of cash huge other $X flow target that a share describing in actually free term metrics suspect X%, year? was for flat you dynamic lift, same cash some comfortable with but revs if the whether getting this And to confirm I didn't mind Thank payment revenues, massive metrics of of

Karl. the Thanks Yes. for question,

also the number subscription And within There's there. you there's a some obviously as factors and there's and the of said, of moving free subscription. license cash if mix in the in then in flex had we flow highlight, mix you saw, obviously revenue As up on-prem -- significant was this also XX%. at look pretty we And which you up were on perpetual up quarter, as a upfront. increase essentially, licenses, term come had we

our great that terms and within renew So cash flow but our do number those feel about we comfortable a the you're that. free things there's leaves move And we're for factors where of to right, how with those are as again, of you obviously us involved, thinking highlight. opportunity of go a we in year. But in performance terms

Okay, terrific. Thank you both.

you. Thank

of next line Bellini Sachs. comes from Our the Heather from question Goldman

is now Your line open.

of the Great. a quick for call morning. you hosting taking in And Arlen you. thank questions -- and and the David Thank the questions. couple Quick

term just are pay saying from kind -- have as people we terms ability licenses convert? like your Also, you far seeing the And for that in a to this I quarter to are wanted longer as the could happen was it us of us start or terms? on so of is I about Is or wouldn't those? who long in. renewals hearing the Just time, was to what specifics the from on mentioning. see So terms. -- follow-up we asking the as they about can discounts follow-up. about, Is what customers, in on of some those limited Karl it seeing just a been tell for whether months? is David, for before you're had quarter, it there three it vendors? payment or with no licenses, month those you what to in of just ask you been we’ve we're them are situation duration even people you're share line can Is long Is use what up people then just anything of then, than variable? more you’re you And -- the on suggested, this seeing their not But bills what thought existing limited license, use other how have

Sure, Heather.

question, -- first that second you first of me part don’t of the the Let jump why the part on take Arlen, that part. in then

was customers somewhat it structure license customized based the year I'd that the say So that But point on at in a or overall, less. time. what needed overall was

in and that engagement expected. we where and a remote are beyond long come said expectation So the regardless once takes, benefits didn't when we between hadn't of them were employee I to will that work. just of are place They capacity. out it we savings is somewhere Burst what productivity is how certainly where we as they extended that one cost to a this, to level -- really customers intended licenses, that non-renewable land The I are context, is realizing none again, similar of that, Most comes of talked of and it year. the earlier, that

of real conferences. so they're travel, going original is at major attendance assumptions, And some questioning footprint, and whether back estate their that

term, our longer for will secular these so continue this business. a -- will environment good I be that that's change, And expect very to

of crisis fact, XX% ago that just pointing In to a out remote released has that passed. days they're few companies once Gartner the expand going a work survey believe

customers I of our place conversion as we short-term of as changes years. well a that will in think help combination pandemic, through the put both many occur broad quarters the secular over it's licenses of to course that or

then, Arlen, payment on terms. And the

looked of we're what needs terms on was limited. customers' we out collections. request back were terms, at it we Certainly, sensitive obviously we pretty terms really payment of that it the saw of finger for was nothing payment really in in terms or our the number of and of and responsive. frankly the discounting the to extended as and I we But through deals honestly quarter Heather, ordinary on went or pulse kept Yes,

long-term this are to line some just other And people that David, us from you you time? not you just trying down be any this for people environment, ticking only quite then, want Do might start conserve about here? paying multiple color item, in my upfront question is could for have deferred to given Should cash. just give to we given revenue expect years

you because time. if But, XX% back at the you our growth point put in all duration place. half up to step in obviously hard of our revenue shorter and at capacity I committed year-over-year look versus, and and XX% was I in know, forecast at we it's future that last this Yes, of down back general, XX%, came year. in look mean, the it don’t term

acceleration. So did we a see broad

list what I engaged it'll of very strategic be those couple think in But of how going infrastructure are the over very prioritizing. roles company's and are importance continue people of depend businesses are keep to keep in of terms high the to effective the customers to individual next that quarters to remotely, general, impacted. is on the

and into back come are. those of we'll some dynamics when that better on we what have visibility report So,

Thank you again.

Thank you.

comes Mark Research. Moerdler of Bernstein question from next line the from Our

now line is Your open.

quarter Thank due were congratulations you questions. got you. the on existing and and stays capacity, an implementing it? customers clients And two I've to more was question. follow-up everyone and strong in buying then the seeing workspace buying beat healthy. And call safe David, this uptick workspace predominantly new a or on hope the

Sure, Karl answer have large of for that footprint Citrix about in is medium a just say we world. now. that business I of the right (sic) I'd the context mean, and hundreds in has [Mark]. thousands accounts every the

come of our earlier you've however, XX% in customers. presentations, workers from into the generally of most our And, as we're some definition, by those in about does seen knowledge available penetrated businesses. So business existing

So continue penetration. room to of we have a lot to expand

thousand the across have sized distribution in the we come as but new So a large We broad the medium net where that's on bulk small, from. would more add did quarter, tend customers to over those well such business companies. be

on Thanks. buying were clients would purchasing? you color give or networking, then color they any networking the us special more can And this Excellent. Were appreciated. on some discounting, licenses hardware Was software? Which products beat? be term

[Mark]. flexibly whole license -- is (sic) hybrid, the a customers Networking share resonates. deployment talked share ability of Karl whether about and pooled that is calls. the different that continuing prior a which Sure, on-prem The a capacity in models, to story allows etcetera we've is to deliver bunch similar trends in capacity cloud, across

of that's And primary the been overall. the so driver business

point total at networking our look you If will continued to software That's that accounted earnings move of for letter, pretty XX% revenue. we out up dramatically.

good seen we've So results there.

first We over also pointed out that networking subscription increased in quarter the XXX% year-over-year.

trends that a it's the before. So of we have continuation seen

it. I you, Thank Excellent. stay safe. appreciate And

Mark. All right. Thanks,

Thank you.

Our next from of question Pritchard comes from Citi. the Walter line

is open. now line Your

couple side questions A plans. around for the product David. on Hey, your you just of

fare quarter? thinking to type forth, you that strategic the projects relates the it that of of you the in up that given of like how and phase-out about did business see you've sort just trade so How in your the this in half. second could change highlighted, then things weaken that first on are landscape? a As perpetual, what's interested And been year,

was trade deprioritized customers teams On quarter. ramp around I were on their our first in getting to up Sure. trade the clock debugged, up certainly the focus infrastructure up, help working etcetera. just mean,

first the repeat part please? didn't have start lot over to a And time focus question, pivot we you of that of quarters. to the on So of back Could I couple we'll mean next your to whole that.

perpetual all, -- ultimately out. and you I position, given looking just that change were in the Oh, the How year -- for think, the thinking were a yes, about we're does licenses on phasing does at environment on the you in mean, those -- now? I at that you're how where

change. to we really we've that expect think no this do stated, end by as real so Walter, I the year. mean, of I

sales exact started We to haven't really make said our transaction. date. and to already and an driving the end life of continue changes of we've Well, others deprioritize terms in that subscription compensation

say unique but haven't that will, environment, We in this customers be of sensitive I'd plans really our to course, changed.

Thanks questions. you. the taking thank Great, for

you. Thank

the Singh of question comes from Morgan next Stanley. Sanjit Our for line

line open. Your is now

taking really Thank questions on QX. impressive a the you for congrats and

you. Thank

Arlen, to withdrawing number of guidance. with, Maybe taken tact full-year couple peers your have a start frankly of a of their the Had questions.

you what sort David And the strong half. mentioned, is question as confidence? my but first going really more are sort of Obviously, so second is, had you gives QX, uncertain a to of we a

are are what earlier work returning does that of some account? into guys So assumptions full-year? People guide later. the made versus to confidence underlying to the you take the gave how you to that And

you through guidance? walk if the of around all some Just fundamental of sort assumptions giving

Thanks.

thinking in. of see quarter. terms David been the And terms in I we the in trend about how the about think said, relevance upon. you I of And we're the good and we've executing that we're second as that think feel strategy

we will in customers significant. and with our continuing pretty we said, So see enablement, ourselves an is half continue. the part year back uncertainty of the important being the conversation around incredibly remote be and work of amount of to that think That

terms So half confident we'll customers' a In we as we where we feel more the if execution. of our end in economically. near-term of frankly we we're are terms I the and there's the needs lot think picture where the of in in understand -- remain half. our back We overall understand economic I year just back uncertainty and think

on Heather's it. then question Got to opportunity. And maybe, longer around term David, follow-up the

technology this have where the that see demand? forward recently potential after meaningful past fruit surge in use coming incentives low a verticals you to that just ultimately? the get penetration sort what really go What are terms limited crisis coming short-term of we information is You sort of licenses? more What going in of of this near-term these adopt the of could about much has of of into could you that penetration workers. in in given XX% stated that hanging way sort under-penetrated What terms most

answer that a the it's Arlen loss is been roles able performed with to think of having security can without I be world the we're customers what really similar articulated to that important. of remotely a is mean, lot engagement, around we've prove just conversation I productivity, etcetera.

other And access mainstream companies of it a realities have for much as footprints, and rethink estate had real world as cases talent in go they so group to back of a continuity. business well their don't employees, even tool the that where many access beyond some been their remote the becomes operational step ability around and more seen drivers long-term in offices perk, limited a places while real

I think increased the beyond visibility continuity historically, business when situation what it people, which to we’re and has more focused the also was right tended to be now systems infrastructure. well around it of comes

is conversation of the to their continue to so now can to of operate And abilities, businesses Board a regardless level that sure best situation. this make

people businesses. is employee the a workspace, possible And new of time. and with Longer So I continues and on very pronounced strategic helping our productivity employee to all importance be it needs need that will as probably more now, the Right I think also and to is value will the overall of that over and the -- us, needs a customers. as we've talk companies the short-term that, means around because we employee for for obviously, and it's vendor term, digital think certainly overall be increase impactful to solutions make expose productive been proposition continues about our productive. the really with of that engagement, Citrix much as experience strategic increase focused conversation of lot some the what this

you. Thank David. [indiscernible], the Appreciate

you. Thank

Raymond comes Majek of Our from the Robert next question from line James.

open. now is line Your

Congrats on the quarter. strong

the teens home, have think the question. from in penetration for is I we higher in from of U.S now. benefiting these rates, your mid how out year? which work balances but You're follow-up two unemployed high results and percentage about right should driving to shift drivers it How is this one to this

subsegment the workers or of our by job the is we knowledge as total day-to-day. a base employee Robert, that that when are their operated critical we utilize pool, at always customers look those into compute opportunity part

employment. roles those at look remotely, to which performed tend really be not we just can total So

-- the been in economy a seeds. short-term so Citrix of really it's that And the impacted unfortunate segments for been most well, wouldn't have the typical have opportunity

how bit how the an differently. going the the little that there, obviously, economic overall we're a And important year impact it's well. individual so play think balance said, it's over very there's that's of we as out to and customers environment a through to and going sensitive balance That to of one and

limited That's licenses? use to you level to helpful. license and use And full any what upgrade upgrades limited into from Have and you full-year the what's the of full price the see difference started customers the baked the the have between guide?

because at specific But was answer programs no out to you the price question than it were these customer less say, the overall bit a easy I'd license. a lot the a way of there's of there, bespoke. little traditional half that a pricing were look and of if

of terms a upgrading once have months people about that In have yet. talk it, early our we We'll it's belt. that to under couple too conversation of

Thanks a lot.

you. Thank

Ittai question Kidron line of comes the next from from Oppenheimer. Our

Your now line open. is

like And some everybody that. on work echo peers for of my Thanks. good the We keeping Couple questions comments safe. me. I'd of and appreciate to

First hospitality troubled SMB verticals and some the on could on of more to the talk like is business how tied much of about travel, or like? into the maybe perhaps Arlen, exposures, your --

Yes.

on We as workers. a a just we we very, very as the knowledge have seen articulated, broad think And I you’ve David and very that obviously been high base. years, over to focus through have customer have analysis tend

impact our I that a horizontal approach think is is. into what on part of have But as that's some business generally in not an or baked anything we it's as do as diversified and ours So, the that's would have is analysis. our and say business would in obviously you an exposure overweight how a

up, substantially about networking And is it. everybody cloud talking business, I follow at Got your benefit should looking been a then think here. what's on how from as going

business more whether little view going this pick complicated, there that's move everything any vertical up really on Your I SSP that a basis. visibility should but well, bit that on? given year-over-year on the is in didn't as know is revenue

a The SSP business. business you as know, is choppy

bit, it represents it revenue As at point. was a but this of you honestly, our mentioned, off about X%

And continue we'll of decrease see our so continue will a that buy SSPs as continuing products also overall to revenue. to to percentage

luck Good good. Very guys.

Thank you.

Thank you.

question of from comes Our the next Ader Blair. Jason line William from

open. now is line Your

got Thank I've questions. two you.

want million understand you business $XXX on Windows And the your pointed competitive as what you I mean? see question, to in continuity. guys actually out First, from Virtual letter that threat the second does then Desktop? a do What a

people that. So provide we it, a quarter first while influenced tagged part of other to more business in just propositions of periods. continuity. our do is that while a continuity the intended the It parts certainly of been in core we've obviously when of prior that And deliver during metric, just business in quarter. solution, little this mean seen to of much of bit of has insights the question, at into concentration as doesn't weren't what our just terms giving look drivers around it part increased. we higher it by be But the qualitative how it's is than was the was color value business specifically incremental we wanted business a some And our one always

from the traditional letter, ARR our did did further about look specific ARR, So all meet in capacity exclude wanted on licenses the guidance we we you definition. down then we calculation. more get of just not talk those temporary They at And to when Burst that. if

well. in future We people as more look at ARR to don't it in said, number those to of those more will structures, successful if be those so, additive expect permanent be are we to quarters. there in converting as have And

those much quantification us came licenses? from you use the of how a Can of give bookings limited

it's latter, but worth in over $XX million revenue period. the in It's the of

the And thanks. on then Okay, Windows Desktop? Virtual

Yes.

we to Microsoft. very work So continue with closely

capacity, standpoint pretty have Virtual Citrix continue Virtual of are joint of are looking that a desktops a offering as Desktop a just I but be functioning conversations We good have deploying that few fully zones most a lot from managed Azure not resource Azure use at Windows a as can have like to Citrix that on top mixed as with a to that that on in include We Continue go-to-market in of offer Cloud. really Citrix or desktop. Think that's saw from the customers Desktop of all everything WVD that going resource to capacity And that base capabilities managed zone WVD have on a focused the QX. environment, for around Citrix customers think uptick sits customers engagement quarters. Cloud, primary turnkey next focus be Windows continue things that natively. to even the Citrix on-prem, to DaaS around

can't WVD And serve pane of sort glass? as single of that

different really different sets, scope they are different Well, capability focus. technology and of a

been additive And up this most our point, so of it's for to customers.

Thanks.

you. Thank

question next Our comes Kirk of from the line ISI. Materne from Evercore

line now open. is Your

and to much sense then discussions about little have more conversations. from about of of in is you home of broader transformation of the look talked can David, more everyone shift a about rethink work here into discussion right about conversations sort your out strategy that once get a up. becoming of many think, get a on versus sort Obviously, bit. sort of and I the days it Thanks. hope Board-level conversation things and call a, me people now about the transition digital bit was the what's to broader really today doing sort so just your And employees little on of set just these the talk we to the home. of of on got as these their days months subscription future term much settled very guess of I everybody versus we are going really are a Thanks and curious, then from thinking trying get X well. I Yes. term just level sort are near-term? how I just or I work was the just of licenses to trying longer point of longer focused is kind now within how from is set

Good question, Kirk.

I think March, to organizations, now. those just them every they here spending obviously And was try they conversation with on more personal of month focused and just possibly basis, types could. the on frankly, I in and hospitals as was of up as quickly get a about time ramped

I'd very, with it's I So other estate, term large lot my that we realization of more travel, mean, discussions around as from of office more in were on they a focused longer focused conferences types really cases in customers. over the on work very and are companies, real those many in though, people benefits say things. time, of peers home There's the as so. around productive conversations and about on going are

think your to at of broad broad on say a -- meta much it's think trends not early your just that place, available just that much set should realizing as we've thought that I that in then of are capabilities employee base, a be a this it's of infrastructure. limited are basis part is I too more people subset can that and conversations but to but be of got looked overall

think in talk So drivers relatively the I'd the and early, place. it's are say but certainly about that we trends long-term I

little I of there the of again, terms from that trying for think, a is related you again X, together to relationships were calls with now. in just more, somewhat starting not perhaps all could to partners, the I just expansion, that think months GSIs, but put solutions a in normalize maybe and tomorrow, bigger some everybody go-to-market comprehensive think up And your deal your set in things inbound trying to X whenever But X, way, here more bit? with bigger to to deals I those

partners anything. technology a position partners, pre-announce large go-to-market and course, not of in a opportunities we're Kirk, we with of number are, of to working kind but through

and Let's we'll them. completed then things we wait till about get talk

Okay. That's very fair. much. Thanks

Thank you.

question from RBC Matt next Markets. Our line comes of the Hedberg from Capital

Your now open. line is

business how these looking Great. Thanks sell in sense may questions. well your I'm bespoke a you’ve of are all helping I these you curious out. of of, how seats? seats? for use of the the some prepared when your taking do basis all continuity or do end my across guys And Glad guess, long at and plan to terms you for limited base quarter, be full existing David, us

mean, part to the I will to. talked April. of licenses, customer obviously a of the that Second them have customers, use we that I the by Matt, we will that subset mean, announced base limited a say we've end of hundreds reaches have question, that phasing of I specifically no, thousands. we’ve we the into be out

part program that will the of phase out. So

delivering is also course, a have large initiatives arisen of out Of been that there, to other of things customers set customers on a customer have focused bottleneck. in maybe not across that a going environments as recognized be There lot go-to-market, just we're a but stepped that of entire focused in businesses realized that period VPN time takes like Citrix, general infrastructure of solution. something back more and or took the complete they that a short-term protracted solutions very a more over

benefits of employee think employee engagement, same be of into months And complete I of those So it having been flexibility, workspace. the three have a on ago. conversations will kind of that the more productivity, longer types cloud, focused are we'd discussions digital transition and will then term,

COVID some like those maybe that plays are SD-WAN, that your some of but do post they your And sorts of and mentioned that CIOs sorts VPN, they out. really -- are interesting, super guess, businesses? terms we of how that I comment somewhere you you of will will CIOs noting How in That's between really, found think today what you where where remote those see I other think impacts of think pre-COVID workers. settle -- about helpful. were then businesses

say effect there. I solutions, these of are those at looking capabilities network similar secondary customers short-term remarks, Well, going capacity looking and that, performance, back and prior of my at overall would the to some

we probably more opportunities follow so, with long-term. will through And

Great. a guys. lot, Thanks

you. Thank

Thank you.

from Our of the next Jefferies. comes question line Brent from Thill

is line Your now open.

Good morning.

the year based on you go-to-market, unchanged to you going leave seeing into this? On your this accelerate are your what you're plan or quota-carrying do going capacity

looking an we're different think organization number still I of I in Well, at hiring. plans. a general we mean, as are

what still are success, hiring areas, balance we of based are customer a number will we capacity, quota-carrying in engineering, us. front that and and the other of hiring still are on opportunities We just

can unique and just important customers the we what most on re-planning few balance the XXXX. and them for the focus and are what obviously help Given around whatnot strategies priorities is circumstances of over environment, current to a

deferred the going that? why have on the accelerate can forward that importance I we're line just many faster that not going you anticipate just forward? asked think revenue you And of item, talk will growth. seeing to Do

year-over-year. think I that on about you is think number, think I focus as how through committed revenue we're which this transition, to going more up it's much future XX% important

a happen. a between there about which I the things all our particularly important and million talked is noise think indicator, we deferred more much and about, $XXX that that's of unbilled, lot we as number Brent, of other prepayments So is in added

So we focus real place future on think that is committed to revenue. the

helpful. Very Thanks.

Thank you.

comes Lenschow question from from the of Our Raimo next line Barclays.

now open. line is Your

echo the colleagues. from Hey, my analyst comments thank earlier I Two and questions. you

First, or mentioned April, continue is pretty emergency emergency the got March, in that use there? coming much people -- are you. more two in in for on but And limited you or situations on are what behavior Thank April, or buying or already you you you Is are one. of did we the done seeing program March enterprise in SMB on there? the partners what more is versus from moment? enterprise terms question extended and are at versus SMB there the you that saw still the to that like SMB, question of that you've seeing what the have stress David, are with side hearing That's kind

for it throughout has SMB a actually relatively is part of time, period us, this very our resilient Yes. been small business. overall but of

won't we So needle. the move

March sure of of a was exactly in that same emergency huge I'm I the more has there from of down would up qualify but intensity of certainly and step the not becomes then come geo-by-geo. terms way, it that middle level In buying, a sector-by-sector, a

as type And you course two. a work-from-home moved States, United over As example, is the situation. regions quite a Japan, of in into It I into more than time. shelter-in-place, early the the it call, at over how pretty part didn't much the a saw pace across week quickly or went for you or spike much of mentioned was reflection Asia, that a see different at just was that Asia-Pacific, mode countries gradual that this of

obviously I capacity think burst customers. we for level So but certainly that will a high see of still our it's priority not item purchasing,

you. Thank Okay.

Thank you.

Our next Reback Stifel. question line from from Brad of the comes

Your line is now open.

you Great. some front, Thanks COVID very much. A the have couple to get of is maybe do quick aggressive on ones. as financial see opportunity situation privates stress? an this more potentially M&A David,

accelerate companies landscape, hard mean, in an point are from what we looking comes it's exactly plans, opportunities continue at I very the at looking is, to adjacencies know very of it making right for the that very there and looking and map disciplined sure or at maintain right that we price benefits close course, view, but thinking to to internal tell. to to say intent existing backdrop to filter, of bring our individual will a Hard demonstrable. I can when road our the that aggressive the we are the be transaction

into base impact And up forward Great. the do take you've going COVID that long implement few customer a Thanks. you those of forward? your future. types it would may going sets times Citrix's mentioned to changes? And themselves does expectation this on How structure structurally how think your then, impact

a it delivering future I fortunate the comes I very This to what Well, business, is our XX of own we for been position. years. in mean, we're work have when mean, do. we

it a other and more step that's work to we're work from at and our our take efficiently in performed XXX% be say certain they to foresight challenges. the But can't of going pretty us, limited in raises said, we’ve months into better somewhere it own work-from-home good part and a two and into back There that person home roles so infrastructure, way are able we’re as number look distributed few probably remotely so, practices balance than visibility a is middle. be had can highly industries. just that for had practical workforce. even remotely and as though That to this. for been prepared own very now And the I'd a more pronounced we we've

systems, we frame, testing through And gone drills stress and the January some so, in whatnot. had time our large-scale of

without it without we a mean, hiccup. work-from-home, So XXX% into as did I we -- moved a

We basis have internal the that already XXXX. of for be decided an we traveling won't on balance

you events would our just where we are As environmental we’ve few practical standpoint. Those next an most expect, quarters. over are of from realities the the large-scale canceled of

companies as things focus as sets think to will you as happen, lot skill efficient are Citrix other be the going forward. I back to with We a certainly something to efficient forward. up on are most to as in-person step are need way other person is building the There and in of that look and that meetings well go at is going digitally going but customers to

much. Thanks Great. very

would Thank Henshall, you. I'm further questions. David the like back closing for At this time, call turn over showing remarks. to I no CEO, to

thank for everyone morning. you again, So, joining this call the

look to in going the our talking Have please We the three safe. we our and of interest shareholders. best look great you decision customers, global communities, our we're, all you and forward day, a quarter and our engaging As our to to business economic again course, this to months. operate with many uncertainty, to employees, of virtually ahead in make of this stay

Thank concludes call. you and today's this conference participating. Ladies gentlemen, for

now may disconnect. You