Q3 2019 Earnings Call
And I'll be your conference operator today at this time I will try to welcome everyone to the Workiva incorporated third quarter 2019 earnings Conference call.
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I'll turn call over to Adam trees director of Investor Relations. Please go ahead.
Good afternoon, everyone. Thank you for joining us for Akiva third quarter 2019 earnings Conference call. This afternoon will begin with comments about Chief Executive Officer, Marty that are flow followed by our Chief Financial Officer, Stuart Miller, and then we'll turn the call the call over to questions.
Also on the line today, its Gelclair Chief Accounting Officer.
A replay of this call will be available until November 13th information to access the replacements in today's press release, which is available on our website under the Investor Relations section.
As a reminder, today's conference call is also being broadcast live via webcast.
Before we begin I'd like to remind everyone that during today's call.
Forward looking statements regarding future events and financial performance, including guidance for our fourth quarter and full fiscal year 2019.
These forward looking statements are subject to known and unknown risks and uncertainties Workiva cautions that these statements are not guarantees I teach performance all forward looking statements made today reflect our current expectations only and we undertake no obligation to update any statements to reflect the events that occur after this call.
Please refer to the company's annual report on Form 10-K in quarterly report on Form 10-Q for factors that could cause our actual results could differ materially from any forward looking statements.
Also during the course of today's call will refer to certain non-GAAP financial measures reconciliations of non gap to GAAP measures. Certain additional information are also included in today's earnings press release, but that will become a turn the call over to our CEO Marty Vanderpol.
Thank you Adam and thanks to everyone for joining the Workiva third quarter 2019 conference call, which is our Twentyth quarterly financial release as a public company.
We are proud of our third quarter, which exceeded guidance for revenue and operating results.
In our last call we discussed our for growth factors W. data AMEA integrated risk and global statutory reporting.
We're pleased with our progress this quarter across all four vectors.
W. data is increasing the number and size of deals across many of our solutions because it enables our customers to integrate their systems and applications with our platform.
With new capabilities, including automatic data updates workflows improved productivity and risk and controls integration.
To be data is changing the way people work.
The city of Missoula, his financial reporting supervisor spoke at our user conference in September about how he previously copied and pasted up to 6000 60000 lines of data.
And then hand check the resulting reports.
Now the city users W. data to automatically update their reports from their source systems daily saving time and reducing errors.
Demand for our current solutions is driving strong bookings growth in the EMEA region.
At the same time, Europe's impending ease up regulatory mandate is increasing our number of meetings with customers and prospects as they prepare for their first Isa filings in 2021.
Therefore, we continue to ramp up sales and support in EMEA.
We also continue to see solid bookings growth from our integrated risk solutions, which include Sox audit and enterprise risk management.
In addition, we're expanding our integrated risk solutions into EMEA and the U.S. Federal government.
We're very pleased this quarter by our go to market results in global statutory reporting we continue to validate demand for our platform to streamline multi entity reporting in numerous jurisdictions. We are aggressively pursuing this large underserved market.
We continue to augment our sales and delivery channels with advisory and service partners.
We recently announced that strategic alliance with the Lloyd.
Which adds to our platform to their portfolio of solutions for financial transformation.
In addition at our September user conference, we named KPMG, our global partner of the year.
Last month, we received fed ramp moderate authorization, which recognizes our work to further strengthen the security of our platform benefiting all of our customers.
This higher level of authorization enables us to help federal agencies connect control and report up to 80% of their information types.
In addition, many commercial enterprises consider fed ramp the highest standard of security assessment authorization and continuous monitoring for cloud software.
We are thrilled with our largest ever amplify user conference in September where more than 1800 customers an industry leader spend three days with our R&D and customer teams.
As I visit with customers and prospects I'm more confident than ever that were keeble will continue to be a driving force in data transparency and connected reporting throughout the world.
With that let me turn it over to Stuart Miller, our CFO .
Thank you as Marty discussed we've been investing in AMEA W. data.
Integrated risk and global statutory reporting to drive revenue growth.
Progress in each of these growth markets has been so encouraging in terms of bookings and pipeline that we are accelerating our investment in each market.
This progress combined with beating our Q3 guidance is leading us to raise our guidance on full year 2019 revenue I'll cover the specifics on guidance later in the call.
Also as you know, we successfully recapitalized, our balance sheet and Q3 with a convertible note offering significantly improving our financial flexibility, we intend to be patient and thorough and evaluating opportunities for investment.
Turning to our third quarter results in financial outlook for the rest of 29 team.
I'll talk about our results and guidance on a non-GAAP basis that is before stock based compensation.
And noncash interest expense related to our convertible notes.
Please refer to our press release for a reconciliation of our non gap in gap results and guidance.
We outperformed our revenue guidance for the quarter, we generated total revenue in the third quarter of $74.2 million, an increase of 21.9% from Q3 2018.
Breaking out revenue by reporting line item.
Subscription and support revenue was $63 million up 22.8% from Q3 2018.
New logos, new solutions and conversions to solution based licensing helps drive strong revenue growth in Q3 29 team.
Professional services revenue was $11.2 million in Q3, 2019, an increase of 16.6% from the same quarter last year.
XBRL services accounted for nearly all of the growth and professional services revenue in Q3.
We expect revenue for professional services to return to single digit growth in Q4.
Turning to our supplemental metrics.
We finished Q3 with 3454 customers a net increase of 165 customers from Q3 2018.
On a net increase of 33 customers from Q2 2019.
The gross number of new logos was strong.
Churn in Q3 was higher among smaller companies, which tend to be more price sensitive.
Our revenue retention rates remained resilient, our subscription and support revenue retention rate was 94.5% for the third quarter 2019 compared to 95.9% for the same period last year.
Nearly half of our revenue churn in the quarter came from M&A de listings and bankruptcies.
With that on to our subscription and support revenue retention rate improved to 112.8% for the third quarter 2019 compared to 104.7% in Q3 2018.
Our progress with larger subscription contracts is encouraging the number of contracts valued at over $100000 per year totaled 611 in the third quarter of 2019 up 54% from Q3 last year.
For annual contract value.
At $150000, plus we had 261 customers in the third quarter up 51% from Q3 2018 results.
Moving down the PML.
Gross profit was $53.3 million in Q3 up 17% from the same quarter a year ago.
Consolidated gross margin was 71.8% in the late this quarter versus 74.8% in Q3 2018.
Breaking out gross profit subscription and support gross profit was $52.5 million equating to a gross margin of 83.3% on SMS revenue a contraction of 120 basis points compared to Q3 2018 additional head count to help upgrade.
Customers to our next generation platform and higher server costs accounted for the decline.
Professional services gross profit in the third quarter was $800000 equating to a 7% gross margin down $1.4 million from the same period last year due to investments in additional talent to enhance services and address new markets.
Research and development expense in Q3 was $20.6 million of 12.4% from Q3 last year due to higher compensation and server expense.
R&D expense as a percentage of revenue improved 240 basis points this quarter to 27.8% compared to Q3 last year.
Sales and marketing expense for the quarter increased 35.8% from Q3 last year to $30.8 million, reflecting investment to drive bookings growth.
General and administrative expenses totaled $8.1 million in Q3 down $100000 compared to Q3 2018.
Given a expenses as a percentage of revenue improved 270 basis points to 10.9% due primarily to a reduction of compensation expenses.
Operating loss was $6.3 million in Q3, 2019 compared to an operating loss of $3.8 million in Q3 2018.
For Keyw is operating margin contract contracted 220 basis points in the late this quarter, but was about 230 basis points better than our guidance.
Turning to our balance sheet and cash flow statement.
At September 30, 2019.
Cash cash equivalents in marketable securities totaled $485 million, an increase of $347 million compared with the balance at June 30, 2019, driven mainly by our issuance of convertible notes in August .
In Q3, 2019, net cash provided from operating activities totaled $4.7 million compared with cash provided of $7.6 million in the same quarter a year ago.
Remaining performance obligations continue to differ from deferred revenue as we implement multi year contracts with annual billing terms.
Turning to our guidance.
For the fourth quarter 2019, we expect total revenue to range from $75.3 million to $75.8 million.
At the midpoint, we are guiding to a growth rate of 17.2% for total revenue in Q4 compared to Q4 last year, we expect revenue from professional services to return to single digit growth in Q4.
We expect non-GAAP operating loss to range from $8.3 million to $8.8 million, reflecting investment in the growth sectors, We mentioned earlier.
For full year 2019, we are raising guidance for total revenue to a range of to $92.92 million to $93.4 million.
At the midpoint of this updated guidance.
Revenue growth for the years, 20%.
We expect non-GAAP operating loss to range from $13.6 million to $14.1 million. We continue to book to believe operating cash flow for full year 2019 will be in the low $30 million.
Turning to 2020.
So on our preliminary basis, we expect total revenue in 2020 to exceed $340 million.
Our preliminary guidance reflects that a substantial majority of our subscription revenue will be priced on the solution based licensing model by year end 2019.
We expect the growth rate is subscription and support revenue to continue to outpace the growth rate of professional services revenue.
We expect our margin on non-GAAP operating loss to decline in 2020 relative to 2019, consistent with our planned investments in our growth sectors.
We plan to offer detailed guidance on our outlook for 2020 on our next call I think we're now ready to take your questions. Operator, we're ready to begin the Q in a session.
Thank you as a reminder to ask a question you will need to press star one on your telephone to withdraw your question. Please press the pound Vicki.
Please standby why we compile the kidney roster.
Your first responses from Terry Tillman of Suntrust Robinson. Please go ahead.
Hi, gentlemen, can you hear me okay.
Jerry.
Yep.
Job in the quarter.
That's the first question sort it does.
They are about a little bit on the guidance for next year I don't actually I've done the calculations, but could you give us some sort of kind of directional commentary on the subscription revenue.
You know kind of breaking that apart versus the total 340 million.
Trying to gauge kind of the vitality of micro first total revenue.
Thanks, Terry we have historically not done that.
You know subsea services revenue is is.
Pretty volatile can be volatile and.
It's pretty hard for us to predict some of it gets sold and deliberate in that within the same quarter.
Our our long term guidance on.
The mix of revenue.
As you know.
Over time, we're expecting it to be sort of 85% subscription and 15% services. So we're still we're still heading in that direction on an annual basis, and we did say of course that we expect subscription revenue growth.
Growth rate to exceed the growth rate in professional services. It's also very early to be talking too much about 2020, but we wanted to give.
The streets.
Some idea of what we're thinking.
No I understood understood maybe a follow up question and I know, it's going to have.
Simpler material implications for 20, and it is too early but we'll get lots of questions about Europe . It seems like you have an event driven catalyst there with the the regulatory mandates. So I would just love some perspective from you or Marty in terms of what are you seeing how does it looks like it's going to shake out in terms of the buying pattern as we move through 2020.
And even into 2021 around trying to get ones health in order around the new mandate. Thank you.
Well, you're right you're right about one thing it's really early.
Well, we definitely have seen.
An influx of customers and prospects wanting to discuss it with us.
Been very promising.
And we've also seen.
Larger customers that are already engaging with us in terms of putting the other plans and actually buying so.
We're still very optimistic on the high end I think we have good visibility.
Maybe the 500 largest or thousand largest customers on the low end, we're very optimistic to although there are slower they don't get going as quickly and.
And it's just hard to say, but we're getting great response, revving lunches and breakfast that around to Youssef and we've had great luck getting people that come to those so we're quite optimistic.
Yes, maybe Marty.
Since you're on a role there you do have four key kind of growth sectors here.
Of the four and I'm sure you're proud of them all excited about all of them, but given just three months removed from the last time, we got together in terms of the earnings call. One of the for kind of surprising you. The most in terms of just kind of where you are versus maybe the expectation.
On the positive side. Thank you.
Well I know you guys want me to say these two are doing great, but it's really interesting they're all quite different.
And.
W. data, it's it's been really encouraging the last quarter, we've seen the substantial growth in pipe and bookings.
Albeit off a fairly small number, but it's really starting to pick up and.
And the customers love it we get saw much crude oil from customers. So we're very optimistic about that.
The global statutory reporting.
Really had a great quarter.
And.
So to the EMEA, so it's real and then.
The thing about.
Integrated risk is that it's the.
The largest right now in terms of building off.
Base for growth and they showed solid growth as well so.
I can't pick my favorite child, I really feel pretty strongly about all four of them.
All right well thank you.
Your next responses from Rob Oliver of Baird. Please go ahead.
Great. Thanks, It's Matt Lemenager on for Rob. This afternoon, thanks for taking the question.
I was one on.
Larger customer deals the customers greater than 100000, and greater 150000 continued to accelerate again this quarter and I assume solution based licensing kind of helping drive that do we kind of reach a point in the fourth quarter or perhaps the first quarter I guess, either part of your store, where we think that levels off I know that Europe , you've talked about those being.
Larger platform sales and maybe some of those will be net new customers that come in greater than 100000, initially, but just trying to think about how how should people think about that expectation for the growth in customers 100 over 100000, as we start to kind of anniversary the solution based licensing.
Well the when we really look at it I really don't expect that to slow down w. data buying in of itself is.
Something that a lot of our customers add on it and not only increases our ats on new customers, but it also augments the ABS on.
Existing customers.
Global statutory reporting another one of our growth factors is.
Typically a much larger deal as well. So we were were feeling really good about that in terms of keeping those.
Those numbers growing on the large customer sites, where you want to add anything yet. So I would you say immediate echoed Marty saying, if you think about the four vectors EMEA is largely about new logos.
Stat Global Stat reporting is largely about add on sales w. data is largely about AD sales to existing customers.
In integrated risk is a little bit of both.
It may be leans, a little bit towards add on sales to existing customers. So so three of the three of the vectors are sort of our either heavily or entirely focused on add on sales to additions to existing customers. So that's why we're confident about the growth in the larger deals larger.
Contract size.
Okay got it and then one other one I have is on.
Operating income.
For the fourth quarter, and just curious kind of what I.
I know, we're ramping in Europe , and we're hiring salespeople and all that we're doing a lot of breakfast and lunch is that's a lot of breakfast and lunch is but.
The the question I guess is what goes into I think it's kind of a bit.
Lower than what the street has that just kind of the.
What goes into that for the fourth quarter.
Sure. So it's not all its not a lot different but it is it does reflect the acceleration of the growth that I mentioned in my head.
Talk earlier.
It's also we've hired a new COO and.
We're investing in.
And marketing as well as in sales in Europe , and in global Stat, and in integrated risk and NW data. So it really reflects the acceleration that I mentioned in my comments earlier.
Okay. Thanks.
Thank you Matt.
Thank you your next responses from Stan Zlotsky of Morgan Stanley . Please go ahead.
Daniel.
Hey, guys. This is hamza fodderwala.
Since lucky.
I just had a question on the the increase in investment.
How much of it.
Was it sort of a catch up.
On hiring at all I mean I noticed.
The head count growth did pick up a little bit.
In Q3 with it was up 17%.
Was up from sort of.
Single digit growth in the first half so was it at all.
Related to maybe a bit of an under investment earlier in there.
So hamzah. Thanks to the question we were head count was relatively flat in 2018 and.
We when we were doing the analysis on the new growth sectors.
We.
Pull the trigger on that earlier this year, we made comments to that effect on our conference call. It just it just at the head count starts to.
Build as takes a while to hire people in.
So that's that's really what you're seeing from flat to single digit too to faster growth in the third quarter.
This is Marty I, just want to comment on that as well.
We really don't view it as under investment I mean, I think us pretty clear when I took the helm that we're going to.
We kept the headcount flattened 18 than we wanted to figure out what to invest in and so we were very thoughtful we tested the all that stuff.
And we didnt want to jump into these things unless we had a high level of confidence. So really that was the period of time that we were we're doing that due diligence on those different growth vectors and so now.
We feel very confident in all four of them and.
Now, we're going to start to invest and.
And.
As we've always said growth is our primary focus.
Got it okay. That's it from me thank you.
Thanks.
Your next responses from Tom Roderick of Stifel. Please go ahead.
Hi, good afternoon. Thanks for taking my question so.
Marty maybe also this first one that you still feel free to chime in you've had the benefits now a full year of started testing the solution based licensing you've seen I think pretty darn good traction from that.
It looks like you know that that approach is wrapping up earlier than expected so you'll get through the customer base by the end of this year can you just talk a little bit about you know the success level you saw in that in terms of lift in average price for the benefit to that.
Marty you mentioned, a little bit of churn at the lower end first and price sensitive customers. So perhaps I was little byproduct that we'll get through and then perhaps a third part of that question is just as we look at the acceleration in growth over the last several quarters, how much should we attribute to the to the solution based pricing as opposed to just general.
Better execution, and newer markets and things that nature.
Well most of those questions were most those questions were stores alternative to hammer I'll chime in I know you things that I want to add so go ahead, yes, so Tom I'll take the last one first which.
Yes, as we've mentioned the last call it's.
Hard to isolate SPL because of.
It's a matter of determining what time the salespeople would have spent how they would have spent their time if they were not talking to the customers about SPL, but I think as I mentioned in the last call. We we think it affected as Bailey as a benefit of a couple of hundred basis points.
But beyond that sort of level of estimate it would be sort of misleading to try to be more specific than that.
So the benefit of SPL.
There are couple of longer term benefits one of the one is it it increases.
The price for the the.
Platform.
On new logos going forward. This number one number two.
It increases the number of users at each of our customers who.
Get experience with W. desk, and then become better prospects for calling on for their specific use cases that they might use every day and.
We're seeing that with our.
In sales so that's all that's all been to the good.
I don't have more if you want to have any also comment on August address the churn issue real quick.
The churn has been a really.
Pleasant surprise for us in terms of the lack of churn, we've actually experienced as or reduce as a as a result of SBL.
Some of the customers on the lower end of the market.
Didnt see the value because they would only add maybe one or two because theyre quite small organizations.
We actually model the higher churn rate. So we've been very pleased with that and.
Having gotten through.
Laterals already I think that that is we've pretty much seeing the ex the effective SPL on churn rate.
Good good very helpful. Thats, great. Okay, and then my follow up Steward I'll just team. This one directly you. This is the RPL question. So one of your favorite I'm sure when I look at that our PEO number. So total is accelerating its growing a little faster than even it wasn't here in the low to mid Fortys there on total RPL growth.
So that's that's really interesting and good and if I look at current this growing.
You know a bit slower than that and high Twentys can you talk to that dynamic of that we saw also in the long term deferred this picked up a little bit more than we are modeling for so it just strikes me that perhaps you're seeing some customers willing to make longer term.
Commitments to the platform, perhaps that's a function of who you're selling two or what you're selling to or how you're selling to them, but would love to hear more about that thanks.
Yes, so I think that the main difference there.
And I mentioned this in the script is.
Yes.
Remaining performance obligations differ from deferred revenue, mainly because we have been implementing some multi year contracts typically three year contracts, but has annual billing terms.
So that would explain the main difference there.
Let's say three Threed three one contracts are absolutely standard for example, and.
RC space and so we're just we're seeing more demand for customers for multiyear contracts.
Okay excellent so thats GRC, driven and just to be clear even on six six those are all still recognized ratably on a daily basis. So no revenue was six cents ex pull forward associated with that right.
That is correct.
Excellent. Okay. That's it from me I'll jump back in queue. Thank you guys nice job.
Thank you your next responses from Mike Grondahl from Northland Securities. Please go ahead.
Yes, good evening guys.
Could you rank your for growth vectors kind of it in terms of their margin profile.
Oh.
No I mean, I, Mike I would say since we're.
Our view on a subscription basis, they're all subscribing to the same platform.
And so our cost.
At least at customers the price subscription price minus customer success is pretty close to the same margin for all of them now there. There is when we're in a new market.
We definitely will have higher client services costs is that product matures and so you'll see.
That on the PS line, but on the pure software side not the services side, you will see a fairly consistent gross margin.
Got it and I guess I was thinking more operating margin, but but but that's okay I understand.
And then can you comment at all just on the acquisition pipeline.
Have you lead into that converted or just kind of whats the current thinking.
Yes, thanks, well so.
We have been certainly looking at acquisitions for three years and and.
By we raise the money in part to to fund acquisitions, and we certainly have.
Increased our activity in that space in looking at investment opportunities.
No acquisitions eminent.
We plan to be patient and we plan to execute according to you know to our strategy, which is one that will have a.
Clear commercial objective and will accelerate our existing strategy.
Got it okay. Thank you.
Thanks, Mike.
Thank you your next responses from Brian Peterson from Raymond James. Please go ahead.
Hi, guys, Kevin here on for Brian Thanks for taking my call.
I wanted to ask a little bit more about your partner strategy. There were lot of new partners at amplify that are starting implementations and will provide ongoing service around the product.
So I guess, how was the partner ecosystem in that mix than contributing with some of your recent deals and maybe related to that outside of some of the sales and marketing investments in Europe . How do you think about partners as a potential point to leverage going forward.
Oh, well this is Marty the I'll take the first crack at that the.
What we're seeing in the U.S. is.
A lot of interest from the partners they definitely realized that there's demand for the product.
They definitely.
Leave they can make money.
Actually implementing the product and so that is really driven a lot of in call incoming activity actually and as resulted in us getting some really nice relationships put together.
In terms of bookings were starting to see that tick up.
Hi, I'm not going to put a number on it but we're definitely seeing an acceleration in bookings coming from partners again off a small number but I'll tell you. The thing about partners is that partners as a two or three year investment.
That they take a while to to get up to speed to where they can deliver and they know how to sell it and all those types of things. So I'm very pleased with the rate, we're adding partners very pleased with the rate that partners are bringing us.
Leads and actual deals and overall I think the growth rate. We have there has been has been very promising is going to be a big part of next year frankly.
In Europe .
We're obviously starting to scale partners, there as well, we're not as well established there so it's a little bit behind but it's going to be a big part of the strategy there as well.
Partners I think playing a more important role and all those countries have different cultural aspects and so we're definitely going to connect with the some of the same partners just their local offices in Europe , and Thats already underway, but behind where we're at North America.
Got it that's helpful. Maybe one more can you talk about the near term implications of getting the federal moderate authorization I know, it's only been a few weeks, but what's in some of the early feedback I guess from your government vertical sales team just in terms of that potentially opening more doors for you guys.
Yes, I think that.
We're going to.
Again, it's off a small number but we're going to see some nice nice growth out of the federal government over the next few years.
Theres been a lot of interest in the can the GRC, our I shouldn't say GRC, but our controls and audit and.
You are m. solutions.
We've already had some sales there and the and the financial reporting has also starting to pick up so I think thats going to.
Grow nicely over the next few years.
I also want to say that you know.
All of our commercial customers are getting much more sophisticated in their ability to assess security.
Of SaaS solutions, when we first started back in 2008 in 2010, when we launched the product we are often times, maybe the first or second or third Sop these companies that ever utilized.
And so we were an early pioneer there and the sophistication of our commercial customers has just follow has gone up early steep learning curve and so.
There's a lot of things we have to continually invest into.
To get our security to the point, where.
Our customers have confidence is just an ongoing investment.
And.
So fed ramp was a big part of that it's a big step forward, we tell every commercial customer.
When we ever security reviews with customers are we discuss security with prospects that were fed ramp authorized and that covers a lot of questions. You just say that in a coffers.
What percentage of the questions. They have because they know what that implies in terms of internal controls and and monitoring.
Continuous monitoring so.
It's going to be a big deal for us up across all of our customers and that and it will start to grow the federal government. We tend to go into these things when the time is right.
Maybe just a little conservatively at times, but we're really think that we're ready to step into the now that we have federal moderate and we have a good gauge on the solutions, we can sell the federal government and I think it will.
Be a nice growth another nice growth vector for us so fed ramp moderate as Marty mentioned in his original talk here.
Broadens our reach to 80% of the information types that.
The federal government users. So it was a significant expansion for us.
Understood. Thanks, guys.
Thank you.
Thank you have a response from the line of Tom Roderick of Stifel. Please go ahead.
All right gentlemen, this falls under the yes, they can't get rid of me. This falls into the category of don't feed the bears so [laughter] Stuart I appreciate the the topline look at 2020 and as I sort of instead of running through the numbers just for the fourth quarter and thinking about what it means for Opex. It strikes me that will probably be somewhere in the ballpark.
60 to 63, maybe a little bit above that and non-GAAP operating expense.
Without I'm gathering you, probably didnt want to give a full year look on profitability otherwise you probably would have done that but would love to know you're thinking as to the run rate we would build into our models here for Q are there any sort of onetime marketing push benefits or pull ins to that number or would you sort of encouraged us to thing.
Talk about their run rate on Opex that we'd model here for Q as a as a nice starting point going into 2020 in other words kind of keep building off that for it as opposed to a pull back in Q1 any thoughts on how we are kind of consider opex modeling for for next year.
Oh for next year for 22, I thought you are talking about 2019, which we gave specific guidance, yes, no just thinking.
Forward after Q4.
So what I said.
Tom just to recap I said that we expect our margin on non-GAAP operating loss to decline in 2020 relative to 2019.
Consistent with their planned investments in growth factors in that we give more.
Specific guidance at our on our next call, but you're right. It's too early for us to to be much more specific than that.
Okay. Good enough today given overall thank you.
Thank you.
There are no further responses in the queue at this time do you have any closing remarks.
Well, thank you very much.
Thank you for joining us today.
This concludes today's conference call you may now disconnect.
Everyone else has left the call.