Q3 2019 Earnings Call
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Thank you for calling applicants I pay deeply.
Oh, Yeah, I'm, calling for the part technology Q3 earnings call.
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First named Michael and my C. H HDL last name Mitch VI CH.
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$13 million [laughter], we're excited about the combined opportunity associated with the brink restaurant magic solution and are confident this will accelerate new customer opportunities. That's currently restaurant magic isn't advance conversations with several tier one restaurant organizations. The brink has yet to penetrate.
Equally important in Q3 was the growth we're seeing a customer bookings in the growth. We're continuing to see early in Q4 as we've said all your growth would begin the second half of the ER and the growth in bookings is the best leading indicator for himself to come. This growth is a direct result of breaking through technology bottlenecks says that the company is struggling for well over one year.
As we continue to grow our team and become more agile, we expect to continue to scale faster.
Additionally, before leading into our third quarter review, we have recently signed our first legacy tier one hardware customer to implement bring point of sale in older 3600 restaurants, just once again validates break in the marketplace is a leading cloud point of sale provider pretty interpret for enterprise restaurant.
No doubt our pipeline of restaurants deployed and drives our confidence in having a solid 2020 and beyond.
Now to review the third quarter. This afternoon, the company reported third quarter revenues of $45.4 million compared to $46.4 million in the third quarter last year, a 2.2% decrease.
This decrease was primarily due to lower contract revenues associated with our government business down 10.9% from the prior year.
Partially offsetting the contract ready decline was product revenue, increasing nearly 3% in the quarter in service revenue revenues growing 3.4% third quarter from last year.
We reported GAAP net loss of $6.2 million loss per share of 38 cents in the quarter compared to a GAAP net loss of $16.7 million in <unk> dollar and four cents loss per share in last year's third quarter on a non-GAAP basis reported net loss of $4.6 million in a loss per share of 28 cents in the quarter.
This compares to a non-GAAP net loss of $1 million.60 per loss per share last year.
non-GAAP adjustments are detailed in our press release I would now like to turn the call over to Brian for more detail reporting on the quarter's financial Brian .
Thank you Stephanie good afternoon, everyone I would that would take this opportunity to provide some additional details surrounding our third quarter results.
Product revenues were 15.9 million for the third quarter entered ended September Thirtyth 2019, an increase of 2.6% from the 15.5 million recorded for the same period in 2018.
Primarily driven by increased hardware attachment with brick installations, partially offset by decrease in core hardware.
Product revenues related to bring were 5.1 million an increase of 105% from 2.5 million for the same period in 2018.
Service revenues were 13.9 million for the third quarter, an increase of 3.4% and 13.5 million reported for the same period 2018.
Generally due to the growth and SAS, partially offset by decrease in core service revenue.
Service revenues related to break were 5.8 million an increase of 49% from 3.99 for the same period in 2018.
Bring service revenue includes all recurring revenue project management and installations.
Contract revenues of 15.5 million for the third quarter, a decrease of 10.9% from 17.4 million recorded in the same period in 2018.
The decrease was primarily driven by a reduction in eyes Saar solutions do conscious contraction of contract funding and timing delays deliveries transitioning into Q4 2019.
In regard to margin performance for the quarter.
Product margins in the quarter were 22.9% compared to 21.9% the same period in 2018, primarily due to favorable product mix shift.
Service margins for the quarter was 33.7 per cent compared to 23.9% recorded for the same period in 2018, primarily due to improved margins and SaaS and hardware services.
Government contract margins for the quarter were 5.8%.
Compared to 11% for the same period in 2018.
Primarily due to lower margin is our solutions and unfavorable contract mix within mission systems.
Now to operating expenses.
GAAP SGN a expenses increased to 9.5 million for the third quarter from 8 million the same period in 2018 and increased at 18.8%.
The company increased investments and bring sales and marketing point 7 million. In addition increases in addition to increases in equity compensation.
SGN expenses associated with internal investigation for the quarter 4.1 million as compared to 23 million for the third quarter 2018.
non-GAAP SG Nay was 8.4 million up 1.3 million or 18% versus Q3 2018.
non-GAAP SGN any adjustments for Q3 2019 included point 1 million related to the investigation of conduct in China, Singapore offices, and point 9 million for equity based compensation.
Research and development expenses were 3.4 million for third quarter, an increase of point 4 million for the from 3 million for the same period in 2018.
Driven by point 5 million increase brink software development.
Now to provide information on the company's cash flow and balance sheet position.
Cash used in operating activities was 9.6 million for the nine months ended September Thirtyth 2019, compared to 2 million of cash used by operations for the same period in 2018.
The variance is driven by an increase in before tax losses.
Cash used in investing activities was 11.6 million for the first nine months of this year versus 4.9 million for the first nine months of 2018.
On September Thirtyth 2019, the company acquired the assets a three EMS drive through communication systems business for 7 million in cash to broaden the company restaurant technology portfolio.
Additional investing activities during the first nine months since 2019.
Capital expenditures, a 2.4 million primarily related to the implementation of or enterprise resource planning system, and 2.3 million and costs associated with investments in a restaurant retail software platforms compared to 3 million and 3.1 million respectively for the nine months ended September Thirtyth 2018.
Cash provided by financing activities was 65 million.
First nine months in 2019 versus cash provided by financing activities of 6.6 million to the same period in 2018.
The increase was primarily driven by the proceeds of the notes net of issuance costs and repayment in full of all amounts outstanding under the credit agreement.
Partially offset by the final payment related to the brink acquisition.
As of September Thirtyth 2019 inventory balance was 19.1 million a decrease of 3.7 million from December 30, Onest 2018.
Inventory turns were three X for both domestic and international operations.
Accounts receivable 28.6 million increased 2.49, or 9% compared to December 30, Onest 2018.
The receivable balances broken down between the government segment of 9.5 million and the restaurant retail segment of 19.1 million.
The restaurant retail segment days sales outstanding increased from 52 days as of December 2018 to 58 days as of September 2019.
Government day sales outstanding increased from 45 days as of December 2018 to 54 days as of September 2019.
I would now like to turn the call somebody to review our business performance in the quarter.
Now to your segment performance air or for brink at the end of Q3 is now $17.9 million, an increase of $4.1 million and 30% from year ago, and a $1.4 million increase from sequential Q2 2019.
This air numbers built off restaurants being invoice as September 15th 2019 in the quarter. We completed implementation of 630, new stores would would rank. The total number of restaurants now active with cars, leading cloud solution total over 9300 sites as of October 14th.
New bookings in the quarter totaled 961 sites, 41% increase from the sequential second quarter and are open order backlog now stands at 682 stores.
ASP monthly subscription rate signed by new customers in Q3 average comfortably over $200 per month importantly, we now feel that we have broken through earlier bottlenecks and feel comfortable that we can book in excess of 1000 stores stores per quarter going forward [noise].
Harbor revenues associated with bring deployment at more than doubled from Q3 2018 as integrated par solution continues to be valued by restaurant owners and operators.
At the recent foodservice technology show, we introduced our PARP payment processing solution par payment services as par is now a payment facilitator and will be aggressively marketing our processing solutions to new customers as well as up sell through existing brink users. It will take some time for this revenue stream to ramp and impact our results. What we are eager to expand the revenue streams with our restaurant.
Customers and we believe this important offering as part of an integrated solution.
Remain laser focused on increasing velocity of our brink implementation plans and our current line of sight is accelerated has accelerated in building throughout 2020.
We are investing in our product development organization to meet our aggressive growth plans and to penetrate additional segment in the industry principally table service.
We will be interesting table service a table service brink version in early 2020 that will immediately enhance our addressable market by two X traditional table service restaurants, no may require a more detailed point of sale solution as their businesses are more complex that complexity will drive higher subscription rates for brink and restaurant magic, which is an exciting opportunity for us.
We are convinced this is a natural progression for integrated suffer offerings and I look forward to updating you on our progress.
Now to review, our hardware and services business. We recently closed on the acquisition of three Ams drive through communications business and are pleased with the business to date in fact, the businesses exceeded our initial expectations. We can now can't count Starbucks Wendy's Burger King in many other large tier one concepts as current customers that we previously did not have relationship with these new relationship.
Ships will be driving high level customer conversations regarding the entire part portfolio with them.
Isn't it this is an ideal opportunity for us to showcase brink and now restaurant magic to these large tier one organizations.
For a restaurant segments, we are ending 2019 moment with momentum as we look to accelerate our bookings implementations in 2020. Our priorities include the rapid growth of the now combined brink restaurant magic offering leveraging pars unique infrastructure to achieve our financial objectives and transitioning our major accounts into additional new business opportunities globally.
On a path to accomplishing our long term operating objectives of accelerated growth predict of critical profits and enhancing shareholder value.
Now to review our government segment, our government business continues to be impacted by the timing of certain contracts ending and the started but new contract awards evidenced by the increase in our backlog at the end of Q3, two $160 million an increase from $153 million at the end of Q2.
We have confidence this significant backlog will provide a solid base for improved 2020, we continue to see contract opportunities, where we can leverage our expertise in industry Nonperformance excellence specifically in value added revenue contracts that include more direct labor and high Tech contract work with our Intel solutions business line.
Mission continues to be focused on solving complex problems for our government customers through our continued innovation deep experience passion and strong market reputation for excellence.
As a company I'm happy to report that we recently went live with our new ERP system. This new operational system as it significantly improved execution capabilities and proper priorities as we begin to feel at the positive impact immediately in this fourth quarter.
Updating you on news, we relate to relate to you last quarter. We recently closed on the divestiture of the sure check business line.
This is an important step for our company as we continue to high intercompany focus on our restaurant technology platform and ensure all necessary resources are directed in available to execute our strategy.
In closing the third quarter was an important step forward and pars transformation, we have momentum in our software business as brink bookings have re accelerated and we'll continue to do so.
The acquisition of restaurant Magic and our upcoming payment is payments business or the beginning of growth of our growth plans to expand our wallet within the restaurant transformations are never quick and easy in our transformation is no exception.
That said I'm proud of the progress our team has made to date.
I'm proud of the proxy team has made and I'm, particularly proud of the part teams focus grit and resiliency.
This concludes our funnel for more marks and I'll now turn the call over to the operator start the question and answer session.
Ladies and gentlemen, if you have a question at this time. Please press Star then that number one key on your touched on telephone.
Question has been answered or you wish to remove yourself from the Q press the pound key.
Your first question comes from the line of Samad Samana of Jefferies. Your line is now open.
Hi. Thank you this is our new on for some odd.
Few questions I guess just to start off with on the rest from Magic acquisition.
I guess you talked about.
The strategy behind that but could you give us some idea.
What the margins and the growth looks like for this company on its on its own and any impact you have on cash from operations going forward.
Sure Yeah.
Absolutely. So it's a restaurant magic is a very high quality product.
You know today I'd say a run rate is near $8 million, we it's growing expected to grow somewhere to 11 to 13 by the end of next year and we feel pretty confident in the business. This is the ability to hit that near 50, 50, near 50 or above 50% growth.
The gross margins, it's business as our traditional software margins.
Anywhere from 70, 80% and.
The operating margins as we go have you always suggests it will sort of be dependent on growth.
If there are growth opportunities hope, we'll continue to cloud our opex back into sales and marketing.
So from gross margin perspective, though they're very healthy traditional software margins.
And as I said the growth profiles is quite exciting and I'd. One thing we forgot to mention that things also interesting is that the churn is great and churn is right now less than 3%, so very very high quality business.
Okay great.
And then.
Could you see that they have you guys have some common customers.
Work together could you talk about how your footprint kind of differs like how much was that an overlap.
I think if you could just explain how the customer base, we bought in a restaurant by that kind of overlaps.
Sure as we said we said they were about 5300 active sites a little more than that.
After the call is not a detailed breakdown of where we have overlap but.
I'd say at least a couple of thousand of those are direct overlap and I think what's important to highlight here as we've been working with restaurant magic for many years as our as one of our back office providers for the brink solution and we've had a fantastic time working with them operating with them and have had been impressed the entire way and so our history and having shared custom.
Probably the roadmap for this deal.
But I suggested they are in a number of conversations that we're not a which is part of our excitement around the deal.
Okay, and I guess, you read through some of the merits of the acquisition, but could you delve into how you think your go to market approach on bigger you're kind of talking about it now, but how does how do you think it changes when you are in the two companies have kind of integrated together.
Sure. So sprinkle always been open platform, we will not go to our customers enforced undertake restaurant magic or or an error or any other product for that matter.
Well, we have realize over time as that as we get into conversations about changing the point of sale product at a restaurant, we're often asked or suggested to push them to other products out there and with the brink solution. We've always found the restaurant magic product to be a nice fit and so as we've seen at some of our largest customer is one way of upgrade the point of sale.
Assistant they've also update the back office in a number of other products and so we think going to market together.
Help accelerate growth and I think a restaurant magic as a company has a limited sales and marketing footprint today, and our AR and we have a much larger one and so we expect some immediate revenue synergies as our team gets out there and starts are letting the world know about the restaurant match a product we expect some uplift there, but our go to market is not too dissimilar than we go today, except now that we.
How about another product in our bag and so that our customer acquisition costs can now be spread over two products.
And I guess you mentioned you you guys are already working together thought these products kind of already integrated together.
They are there okay. So there isn't a huge ramp up I've sort of on the technology stack.
I would say that you get the ramp up will be on sales and marketing and look at a restaurant magic has been incredibly well a efficiently run a instead of sales and marketing there is relatively limited and that's where we'll still see most of our efforts early on.
And then down the road, we think there's a lot of room to product innovation. Our team is very excited to see what we could come up next with would be a solution than I think.
Excuse me it wouldnt be exaggeration to say between the point of sale in the back office, you're running the two most important overdone likely the seamless important products within the restaurant and I think there's a there's an opportunity to create some work down the road.
Just just a few more if you Matt.
On the slate deal.
On.
Just in general like on M&A.
Could you talk about like are you would how you're thinking about it now look at this is a sizeable deal. Your are you done with making major acquisitions are you still have an opportunity for you for you or do you see gaps in your portfolio post the steel.
Oh, it's in our main focus is still scaling up brand guys. You saw we've been able to accelerate bookings again as we break it broken through some technology bottlenecks and we expect that to continue throughout 2020.
That is always the main focus capturing that footprint that market share.
But there's no question, there's more opportunity for us to expand our product portfolio and that extension may come through M&A as we did here, but it may also come through our partnership program and other products or it may come from US building product and one of our great hopes is as we continue to work through the backlog that you've heard over this last year from our customers will also start creating new product and so we see a lot.
Out of interesting opportunities out there for further M&A.
But.
I'd say gold one two and three is the scale our existing product.
Okay, and then on the hardware side could you just talked about.
Some of the factor is that the vendors had the large hardware client could you talk where some of the factors that drove that Ben what did you compete with.
And then I have one follow up thanks.
Yes, and just a clarification. So this was a what we call legacy hardware customer a longtime customer of our hardware business that we've now transition to a brink customer which is the first example that happening in our portfolio.
I think I could say we competed against everybody in the point of sale space given the size of the customer you can assume that everybody really tried to participate in like either three or four firms that we can deal with the most where we're in there I think we won for a number of reasons. Obviously there was a many many are.
Relationship built off of trust, we've done a really good job servicing this customer for a long time and so there was a level of trust there.
And then most importantly, our product one and I think the combination of having a very long term relationship built on trust builds on mutual respect.
In service combined with what we think is the best product for them made that made that possible.
And the final question just in general like now that you have put the companies together, but how should we just generally.
Think about decor business of brink asked one is organic growth for bring going into 2020 like.
If you could give us some idea or how do you how do you think like what level it'll be.
Yes, so I think you're going to seek a continued acceleration. So bookings are a a great way to track our future installs and bookings. This quarter were almost 8000 I think it'll continue to expand next quarter in all 3020, and so we expect next year to to be Matt significantly faster growth in this year and.
We're not providing formal guidance, we feel pretty confident our ability to accelerate the growth and where we are today and I think this quarter's bookings were just the beginning of that.
Perfect. Thank you all thanks for answering question I go back into queue. Thank you.
Okay, and ladies and gentlemen, if you have a question at this time. Please press star that's number one key on their touched on telephone. If your question that's been answered or you wish to move yourself from the Q press the pound.
Next question comes from the line item, we Didnt have CW capital. Your line is now open.
Hey, a sub need the great job on the quarter.
So can you give us a little update on the pipeline of new logos deals we've heard through scuttle about that many large brands, rather piloting or upside down with brink recently, you know some of which you will actually go shared boost with the conferences I think youre with restaurant magic with with churches chicken parties and.
Carl Junior Yogurt land Burger King Panda Express ADW. These are all things, we've kind of seen oh through some our channel work can you can talk about pipeline the competitive landscape why these tier ones are choosing brink and.
And you. We also are that Q1 of your competitors actually seeing some customers need their platform to sign up with Frank I mean can you talk little bit about landscape in enterprise and and the pipeline of new logos.
Sure I can't talk about any specific logos or wins that we haven't disclosed yet, but oh I'll focus on the core of your question, which is why.
You know brink from day, one was built for that community. These these large enterprise.
Customers.
I've always appreciate the design and I think the workload to bring product and hence we've continued to windows large logos amongst increased competition.
The reason I think you know where we're seeing some acceleration is is it's not that it's new demand I think its demand that was always there was actually our ability to access that demand and I'd say for the last year or so we haven't been nearly as aggressive as we want it to be on the sales and marketing side, because we had a relatively large backlog of development a very large back.
Doug on infrastructure, and so we've been climbing aggressively out of that starting with our capital raise which led to a lot of hiring a lot of changes and so I think we are not through all that yet, but as we continue to climb out of that you will see not only gross in.
New large signings like the one we had this last quarter, but it also seems to some acceleration in the logos. We've already signed that we haven't fully penetrated and but its core the bring product was really built for that enterprise market and we continue to win because the product is differentiates itself. It's not much more more than that I think the other thing that we've we're taking advantage of is that or cut.
Of course has continued to come to us. It on this idea of wanting to be their partner one to their solution provider and there's a great deal of trust part has been business in this space for over 40 years and that really matters to enterprise customer that we're gonna be here for another 40 years and so we had this great reputation of service, we there's great reputation and product and and now we're just honestly on leasing.
Our team to actually go after that where if I'd say for the last year, we've had to hold back.
Got it and this is a follow up I think to err on the Bob's question from Jefferies.
Some of the larger ones that we spoke into like Pizza Hut and I've said, you'll look you know they want to go with break and they haven't got with anyone else because they haven't had the functionality yet no one of the things they talked about was back in the house.
You know can you talk little bit about the M&A pipeline I mean, I know, obviously, you want to grow organically, but I think in one of your medium articles and podcast you talked a lot about your appreciation for what Mark Leonard has done it at constellation and obviously M&A uplink and Paul will look different we think better or more like self salesforce dot com and being protocol with.
Real cross selling synergies, what you're seeing with restaurant magic in terms of having similar customers. I mean can you talk a little bit about the pipeline and can you.
Can you talk to me look I'm, just doing so back to the Diablo math, but I mean, it seems as if.
You guys could be 60 million LR, not including payments at the end of this year I mean do you think it's possible with M&A that you guys could get you know kind of close to 100 million today or by the end of next year or into 2020.
So I think it's hard for me to share the pipeline because as you know it's competitive market and.
But but I'd say this what what we focus on first amongst all else is if we add a product to our our solution doesn't make the customer better a lot of what we're really what I think we brought ourselves back to is one of the foundation of brink, which is how do we serve our customers really underlying that word serve and we lost sight of that for some time and so.
We would not have acquired restaurant magical we did not thinking at our customer customers' lives better and so I think a little bit different than investment business, where you're acquiring streams of cash flow here. It's all about serving our customers and I would tell you in a restaurant industry.
There's a lot of opportunity to expand what we do today.
And we've talked about in the past, but the point of sale product is not even 15% of the spend of an individual restaurant.
And so there's a lot of room for us to expand whether we built product partner or acquire to be a lot more to that to that into that restaurant not to mention all the products around the horizon in one of the things that I think is under appreciated about this market is that as the entire restaurant stack moves to the cloud his entire restaurants that becomes color virtual you had this up that the market.
Could you expand their products you couldn't dream of meeting two years ago, but it could become absolutely needed now and that will continue for a long time and so.
I think theres a lot of opportunity for M&A, I think theres a lot of opportunity for us to build product and Ah I think we wouldn't be here. If we didn't think we could continue to do that but first and foremost again, our priorities we have to get brink in more stores, where obsessed with growing that's that footprint and our expansion in table service is just part of that part that equation.
Okay, just just kind of following up on that I mean, obviously I think what you're trying to say is look you know look at our duck 9000 is the stack and not including payments and you know obviously as time progresses in restaurants grow and cloud kitchen, all around the restaurants are going to be doing more a b, we're going to need more hsas and so 9000.
This is one of this today.
But that's going to grow and we're going to be opportunistic maybe maybe going down the line in terms of payments and table service.
So it seems to me that a lot of your competitors are basically been getting locking in their customers into payment contracts by giving away the hardware when we run so back in the you obviously its restaurants different but you know the all I see it kind of giving away hardware or giving a discount dan or entering into some sort of lease and earning 80 basis points that on a new.
Million dollars restaurant I mean, that's that's a 8000 bucks year you run it out five years, that's 40 Grand I mean.
Cash on cash in terms of of doing that and payments or are pretty incredible I mean can you talk about kind of your strategy to proliferate payments and maybe it even maybe you can even pair payments with soft. So you get 3000, alongside US and you get 8000, all payments and you can.
Start really cranking up they are how do you think about that.
There's a lot there. So it's I'd say this I think us getting into the payment business. Yes. This is something we should have done a long time ago and it's been a competitive disadvantage. We are now in it I think it's important for a couple of reasons. The first is absolutely we should be giving integrate integrated payment solutions to restaurants, it's better for them. It's obviously, great business for us with no.
On a lot of uplift on the call it the customer acquisition cost, particularly in the call. It the very franchise organizations or NR Downmarket restaurants. The second part of it is it gives us a lot of flexibility in how we can.
Make the the upfront cost to our customers lower which is right now we have theres capex to roll up brink. If you want to upgrade your hardware you don't always need to what many customers do and by locking in a payments through a payment stream, we're able to help that restaurant push off that capex.
And so it's absolutely something we're looking to do where we can offer you know effectively free hardware upfront for becoming a payment partner of ours and just give us more flexibility to go after certain types of customers. We haven't gone after particularly in the table service market. So so we're very excited about it because I think it give us not only give us a new revenue stream, where our competitors have then and we havent, but also gives us.
Some flexibility for more creative deals, particularly for some fast growing chains were that capex really matters.
Yes on the table service side.
Brink is in the table source market today, we've got one hundreds of stores running table service and I think one our newly should bring identified really on wells, mostly pixels, mostly table service right. I mean, you have like a lot of thousands of pixel installed already Craig.
That's right and so I think we feel pretty excited about that we were aren't as far from an incredibly high quality table source product as we had originally thought we were and so we've accelerated development table service, we expect meaningful contribution to the table service in 2020.
And as you suggested there is there opportunity is because with there are markets of the world, where we have a very very strong table service product that we think.
We should be able to convert over to bring in time.
From a pricing perspective, I mean, when we talk to people in table service restaurants, I mean, some people could be paying $40000 or some ridiculous number for a comparable table service product I mean, obviously.
These are bigger and there's more terminals, but I mean, those those table service I mean, you know not including payments, which you could probably bundle also I mean, you're talking multiples of what you're charging for break correct. I mean, we're talking well into the before digit thousands now.
Yes, correct. So table service restaurants are significant pricing actually higher than quick service fast casual wear the vast majority of our sales are today, usually at least a factor of too.
At least a factor of too, but presumably more okay. That's great. We've been doing some channel working it looks like you guys have been making a lot of big hires and you know you're hiring like Crazy I get Lincoln, sending the message has asked me if I'd like to work at par Oh.
Are there any other bottlenecks in terms of this being a much larger company or where maybe said another way I mean, if the Neil New deal pipeline is so good and the JV published.
What is standing in our way of installing a lot more units I mean, we talked a little bit about giving people hardware and people, there's the capex and so now the of the balance.
The gross or maybe you can start I mean look a lot of these comes just looked like financing business as you give a small restaurant 25 Grand hardware and you get the payment stream and SAS I mean, how do you think about now that you've got scale capital what is standing in your way in terms of really accelerating the installation or more units or or is it pelham imminent.
So I think we've removed a lot of the bottlenecks and I think where we're starting to see breakthrough.
Are we anywhere near where we need to be no, but from where we started the year, we're in a dramatically different place.
How do we get there we continue to higher very very high quality talent and what we've been announced as people have only when we do I think you know we are investors. The impressed I think our customers have already been impressed but it will be our ability to continue to attract and retain great talent will be the key for us to scale. We have I believe we are at a point where.
That that hurdle, we had throughout this year is starting to relieve really saying I think thats why we see our bookings accelerating this quarter I think they're going to accelerate again next quarter and we really feel confident 2020 will be a big year for us. So we feel we removed a lot of bottlenecks and.
Every quarter I get more excited about our opportunity to ramp because we have more talent.
More bodies to help us actually get things done, but we've still got will always to go in and we're continuing to find great talent. So.
Feel free to apply any time soon thank you.
Last question.
Lightspeed and some of these other companies I mean, you guys.
Have traded I guess historically at a major discount to the rest of the group and I would say some of that was related to legacy governance issues in some of it would probably related to scale and personnel, but I mean think about it right. We've got dairy Queen we probably just side D. CKD, we've got three major tier tier one logos we've got good.
Great staff, we've got you we got capital we've got payments, we got restaurant Magic No. I mean, why is this thing still trading at it at a massive massive discount to everyone else you know given that we've got a huge runway in front of it and all this additional aon bar and hard to opportunity I mean, why do you think.
That is obviously your cost of capital matters to the extent, they're going to continue to do M&A.
Did you guys feel like you guys have a path forward to kind of narrowing the valuation gap you that selling government I mean, I don't know I mean, I'm just kind of curious your thought processes kind of in terms of kind of narrowing your cost of capital. We obviously restaurant measure is a wonderful deal and it can be accretive, but you know when you want to buy a $30 million SaaS company.
Any it's going to cost more to your entity to higher cost of capital I mean.
How do you think about getting there.
Yes, and I know, we're well aware that the importance of the cost of our capital given the space that we're in and the competitors that we have probably looking to buy the same assets were looking to buy.
So I think there's a lot there and I'm going to narrow and say.
We've come along really long way in a short period of time, when we started the year we were.
In a situation, where we had and I'd say customers are very disappointed us we had a workforce that yet wasn't energized wasnt empowered and we didn't have money and it was on a long way to rectify that were and so I think our ability to close what might be a potential valuation gap is going to be us just executing and I think a as you saw this call.
I would actually accelerating bookings I think if we continue to accelerate bookings we continue to sign these new logos and we prove out the that one plus when it goes through restaurant Magic I think the stock price will take care of itself.
Very good well look I, Oh look forward to see you allocate the capital Walla Walla kind of creating deals that have relevant when a cross selling it thinks it looks like a great great opportunity very excited for it.
Thank you.
I'm showing no further questions at this time I would like to turn the conference back to some neat thing for closing remarks.
Thank you all for joining we look forward to updating you next quarter.
Ladies and gentlemen. This concludes today's conference. Thank you for your participation you may now disconnect.
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