Q4 2019 Earnings Call
Yeah and welcome to.
Fourth quarter 2019, Investor Relations Conference call.
I would like to turn the conference over to Mr. Brian .
Go ahead.
Thank you Kathy.
Good afternoon, everyone. Thanks for joining us for progress off where its fiscal fourth quarter 2019 earnings call.
Today, our you'll get scooped up President and Chief Executive Officer, I told you all there's our chief financial Officer before we get started I'd like to remind you. The during this call we will discuss our own books for future financial and operating performance corporate strategies product plans cost initiatives and other information that might be considered forward looking.
These forward looking information represents progress softwares outlook and guidance only as of today and is subject to risks and uncertainties.
Please review our Safe Harbor statement regarding this information, which is available in today's earnings release as long as in the Investor Relations section of our website Congress dotcom.
Our software assumes no obligation to update the forward looking statements included in this call whether as a result of new developments or otherwise.
Additionally, on this call the revenue operating margin diluted earnings per share at adjusted free cash flow luxury with her true I want to non-GAAP basis.
On a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP numbers in our earnings release issued today.
Also please note that all 2018 amounts have been adjusted to reflect they actually six so six which we adopted effective December one 2018, using the full retrospective nothing.
Today, we published our financial press release on our website. This document contains the full details of our financial results for the fiscal fourth quarter 2019, and I recognize you reference it for specific details today's conference call will be recorded in its entirety. It would be available why a replay on our website in the Investor Relations section and the dock.
I'll now turn it over to get gosh.
Thank you Brian .
Good afternoon, everyone and thank you for attending our fourth quarter earnings call.
So you've seen them to talking and specialty or Q4 performance was even better than expected building out a very strong and 90.
Revenue if he has an operating margin.
The high end up our guidance.
And we achieved record free cash flow as well.
I'm very pleased with the operational and financial performance.
I thought business segment.
Let me be 26% for Q4 and 14% for the year.
Yes, 46% for Q4, and 22% for the full year and kind of thinking operating margin ended at 38%.
These already impressive results and I'm extremely proud of the hard work so cheap.
The success what seemed a bit switch is in large part of the reason you were able to me and then beat or you P.S. and margin guidance twice in the second half will be.
Demonstrating our ability to create value through acquisition.
Our free cash flow was about $9 million year over year them, all time high I live in $29 million.
And you're expecting 2020 degrees, but another $16 million to $21 million.
Again, and it doesn't fulfillment that illustrates our ability there will probably be profitable business.
Excellent cash conversion.
We also returned almost $50 million shareholders and 29 pm.
Moving on a quarterly dividend.
This was a third year then the role that we have begun to use our dividend is establishing it in 2016.
Which is another reflection.
Confidence, we have ongoing gas generation.
Overall, our businesses performed at or above expectations, while the year.
It should continue to exceed our government projection.
Very pleased with the momentum but.
Let's spend a few minutes with me are booked a fourth quarter and full year performance like Egypt for sex.
Starting with open like segment.
Open Mic is of course, our flagship, though and it's still going strong.
Oh, no business is very healthy.
But the goal to be continued to see.
Yes, when needed revenues, we do see from partners is filled at applications in Macau.
We also had a solid year from Openedge direct enterprise sales.
We didn't get very strong finish that helped weibo overachievement in the ballpark.
Well I hope ordering to me that expansion do you think about five six figures for civil a hole logs openedge direct customers.
These customers again, either organically or through acquisition.
Which results in the need for more licenses for that business critical openedge applications.
The largest of these views was really large once these mortgage loan provider.
Given by key factors.
The need for more licenses because of Dame formal girls.
And second by their need for additional technologies wouldn't be openedge sweep in preparation for that land upgrade Openedge 12.
You know not mentioned many times one of the music. So the continued strength of Openedge is ongoing focus on innovation.
Well the much 12, which has been used in early 2019.
I guess performing boardroom, we have ever could use and many other cost most important first want to take advantage of all the security and performance improvement in just like us.
Abridged wasn't love therefore.
So my business in two ways first by supporting of all to be strong retention.
By creating additional Debbie opportunity, we do not existing base.
As you know, it's which is not part of the ultimate segment as well and gotten used to perform well original expectations.
Revenue from bolt on medical it management and secure beautiful products has exceeded all projections.
And bolt, where a large part of our Overachievement in Q4.
Along with solid sales execution ongoing investments in product development. Because also contributed if such a better performance as we did he was also both movement and what's up gold in the months following the acquisition.
As Weve Openedge and all the products. These development investments enable us to maintain what's been done it's switching recurring revenue and customer retention.
I'm also pleased to report that the anticipated $50 million slippage switchable synergies.
I wouldn't be realized by the end of 20 Monkey <unk> five months ahead of schedule and contribute to walk improved profitability for the full year.
Not only do RBC I said.
I'm pleased to say that it continues to perform as expected.
<unk> as a very healthy business, we've been extremely consistent annual contract value.
We are the market leader in relational database connectivity.
And with many major software companies, including nine of the top then yeah on their <expletive> for embedding do direct we didn't that blogs.
We also added significant new OEM or do you have this year.
Yes, based multi billion dollar global Budweiser intellect, when you're just thoughts themselves.
It's actually the multiyear deal with a marquee wonderful.
And the contribute meaningfully to the DC I used to be going forward.
You see I was also partially responsible for fourth quarter revenue Overachievement.
Resulting from a few multiple deals with them before.
We did if that was because of you would want to four largest well yes.
You do the tone of their contract from three to five years.
Walking your relationship with the ski OEM for an additional two years makes good economic and business sense for them and for us.
Well, let me see ideal that contributed to our Q4 Overachievement was a new direct to customer win.
Customer board economic and financial bump up in the Gulf much.
And did a chronic disease typically for that offering.
Do you see I'd be go southern construct first and then if you'd be in the high six figures.
This is the largest direct to customer do you.
Its history, which is a big exciting and pools, but <unk> continues to be the undisputed leader in premium data access market.
At the why didn't the best in class Security performance was good.
Or eating in these segments rebounded after a challenging spark to the here, but can you give your hoping stable business.
Q4 revenues looks like so maybe if you do they have come up in customers and expansion do you in the most six figures.
So a large deal cycle.
And that's these bookings grew 10% sequentially over the third quarter.
If you don't be products future market, leading innovative technology.
If you have is being the first to market in 2019 with it.
Why components for Microsoft laser.
The new like stuff and what the Bucknam developer.
And so I couldn't be being named.
It's like customer choice by Gartner for the third time.
In Q4 to 40, Mike.
Overall above our businesses are performing well.
And let me know efficiently one at the same time, keeping them hope you install our key elements of our strategy.
Autofocus media for a flight 20 and beyond.
Could you give M&A.
Which we project will go lives, 10% to 40% Daniel inorganic revenue gold and Weve scaling gosh.
We believe that off success will give switches repeatable and respond to.
At this type of M&A will create meaningful shareholder value over the long term.
We're focusing on M&A efforts some companies within the software infrastructure space, the Baltic that appeals to both like utilization as well as individual developers.
I want to emphasize that continue to follow our disciplined like here as we evaluate potential partners.
Our pipeline is healthy and we'd be current market conditions. We remain confident that can you can achieve our goal of doubling the size of our business in five years.
Well you 19 was an excellent year for progress.
And looking forward.
Yeah, well positioned for continued success.
In 29 2020 and beyond.
What was the wide movie feels a lot biden for 2020.
It really beautiful beautiful results for its rich as opposed to only seven months.
29, Pete.
We anticipate that you do not them to switch contribution was helped to drive total revenue growth of 4% to 5% for 2020, along with another 800 basis points of margin expansion.
Both the system would be below your expectations, we provided during last quarter school.
We continue to focus on running up isn't sufficient and anticipate operating margins of approximately 39% in 2020.
This represents a 400 basis points improvement was just 2018 levels and lots of accomplishment, but can be achieved by continued good life operating leverage across all functions for the business.
Going forward, we would not make a dog and operating margins into high Booties Ridge.
In addition to being polices revenue and profitability, we also anticipate $16 million to $21 million more in free cash flow in 2020, which is a significant increase.
Over 2021.
You keep margins are carefully balanced the continued investment in our business.
With blue over the past several years.
Focused targeted spending on products support and customer relationship management enables us to maintain and grow our recurring revenue.
And do a team and solidify our customer base.
And we continue to seek out opportunities while PD lemonade.
We we will maintain our shareholder friendly capital allocation policy, which includes both dividends and share buybacks.
We remain committed to allocating approximately 25% <unk> annual free cash flow could be.
And also plant that was being share buybacks in 2020 with the goal of offsetting the annual dilution from our equity.
So in summary, I'm really proud of the year, we've had to 20 Nike. We stayed focused in Q4, finishing the year strong and worked hard to sustain that momentum in 2020.
Our businesses all help.
And it's which is performing better than expected.
Which we anticipate will continue this year.
Be positive on the financial performance, we are projecting for 2020 and the opportunity for PD lemonade to contribute to our efforts to drive.
Shareholder value.
I'd like to thank our shareholders again for their support and look forward to meeting with many of you over the next 12 months.
You know all involved or do you also seem to be announcement the false retirement, so before I hand, the call over him I'd like to say a few words <unk> contribution to progress during his to your tenure as our CFO .
All has been instrumental in all aspects of all business and operating strategy.
In addition to watch <unk> performance margin on the are under stewardship. He has played a critical role you know go forward M&A strategy and with a major driver behind our capital allocation policy.
Well, it's maybe I'm sorry, Paul do it to see you go but I certainly understand and appreciate that he wants to move along too much deserved retirement, I wish and nothing but the best.
I'm not doing things or to Paul you walk Q4 performance in more detail and outline a financial expectations for Q1 and for the full year 2020.
Okay.
Thank you to turn where do you have gosh and good afternoon everyone.
As a reminder, all the numbers I'll be referring to my remarks on a non-GAAP basis.
I'm very pleased we have fourth quarter full year financial performance.
Fourth quarter total revenue was 123.
$4 million <unk>.
$4.4 million above the high end of all garbage.
Primarily due to the whole thing we anticipate the license sales of Openedge that switch and do see Oh.
Our earnings per share of 79 cents for the quarter.
46% year over year.
For sure.
But the guidance range.
For full year.
Total revenue was $432 million increased 40% compared to 22.
Earnings per share was $2 each particular regions all 50 cents.
One through person.
22.
Looking at a consolidated revenue for the quarter compared to Q4 last year.
For revenue of $123.4 million increased 26% to watch here.
20, several personal told the constant currency.
The year over year impact if exchange rates went up fourth quarter Robby.
Negative $1.2 million.
Why to its revenue of $39.4 million increased by 31% from a year ago at actual exchange or.
By 40% on a touch controller.
Yeah, Chris was due to the license revenue from that switch as well as of the wall of hand lumber multi year term OEM contracts with and I do see I've said.
That's compared to last year.
Maintenance and services revenue was $84 million decrease of 20% year over year actual exchange rate.
Hey, 21% the constant currency basis.
This increase was primarily due to the addition of UBS.
Turning to full year revenues compared to prior year total revenue of $432 million.
Oh peed pitches versus last year.
Actual exchange rates.
Supersalon on a constant currency basis.
Year over year those types of exchange rate on a full year revenue was a negative $7.3 million.
Our two its revenue of $122.7 million.
Foosball, 23% for many years ago quite short surgery.
The 20 talk to side.
On the top central which reduces the.
The increase was primarily due to the license revenue from mix, which is what was the renewal of a higher number of multi year OEM contracts.
She I'd say.
Maintenance and services revenue was $390.2 million well to do love infrastructure that you exchange rate.
12 person on a constant currency.
This increase was again due primarily to making sure that switch.
Turning now to a lucky strike, but with all comparisons versus 28 years constant currency.
Openedge revenue was 92 point it.
For the fourth quarter.
27% versus Q4.
Last year.
Full year revenue was $322.8 million.
60% compared to like.
If you choose a partner driver behind both portal.
<unk>.
We're very pleased that fall in love with management.
Sure data file transfer product, Colombia, switching performing better than.
So Jeff.
Lots, which reviews from our Openedge paused the channel continues to be stable, it's another solid quarter and your thoughts related domes Gamal Hollis News report their applications in the Paul.
We also had a strong quarter formal openedge direct enterprise.
Q4.
Several large deals with customers purchase.
Maybe capacity because wall has added functionality.
I need it as they prepare to up the token edged wall.
Full year largely Charles from these customers grew slightly.
Maintenance renewal rates been seems to be strong well over 90% boat shoe for multiple years.
Turning to our do you see on segment revenue for the quarter was $12.2 million more than doubled the rather than Q4 was.
We have to just at a significant year over year increase based on the schedule renewals of our multiyear Oh, yes.
During the quarter, we also extended the term well the significant Oh young tranche one.
Im sorry, new direct customer both contribute contributing to better than expected walking you through Q4.
Yeah, I'll walk into a full year, it's $40 million it includes 73% versus 28.
As a reminder, our results can fluctuate quarterly continues to do you see our chosen.
For the timing of a warm renewals.
Associated charter treatment younger age to fix so soon.
We've done a student interest it's what do you need to come the plenty of these multi year over year.
2020, whether you will be lower due to the small number of scheduled renewals, making our year over year to persist for DCR more challenging.
As Weve discussed throughout the year, we believe it will portrait remains for most effective where she's all worried or do you feel like the <unk>.
We could treat you expect ACB to be $30 million to $33 million to 21, consistent with our actual performance the 29 too.
[noise] for aren't they do these second lovey was $19.6 million for the quarter up 1% compared to Q4 22.
Well the mutual full year was 76.4 of them.
But you probably won't be clauses.
As expected total bookings were $21.7 million for the quarter essentially flat to Q4 last year.
$78.1 million for the full year fell 4% versus 22.
Turning to expenses total cost in operating expenses were $76.1 million for the quarter.
Well for 2% come true for 28.
The $269.7 million.
Full year up 10% versus last year.
The increase for both Q4 in the full year, you put them all to the addition of Ipswich.
Partially offset by lower expenses due to efficiencies, we country, it's real or in our business.
Structures wallets alone to four as a result, the largest tuition to decrease the investment in our kinda talk.
As I noted during last quarter's call if it's Paul Lytle barbecues expectations in this area.
We assess the carrying value to be associated turntable afterwards.
Quoted a charge of $24.1 million.
Q4.
It impacts our reported GAAP results.
Operating income was $47.3 million for the quarter, all $16.3 million or 53% versus Q4 22.
Full year operating income was $162.3 billion, an increase of $28.3 million were 21% versus last year.
The two for one of my team operating margin was 33 person <unk>, almost 700 basis points <unk> to four walls.
Full year operating margin was 30 of this phone.
400 basis points target within our expectations and an improvement of more than 200 basis points.
22.
Q4, New plc settlement on June .
25 cents higher than last year and full year repeals was $2, it's 69 cents.
50 cents improvement versus 22.
Moving on to a few BACE be trashed walnut.
The trumpet he does this quarter with a strong balance sheet.
Cash cash equivalents short term investments of $174 million.
<unk> debt principal balance at the end of Q4.
297 million at all.
Yeah. So for Q4, 20, <unk> Jude sponsorships that.
<unk> figures sequentially, but my days versus Q4 last year.
Oh, Hey, all balls to produce significantly if you ended the year due to the timing of bonus true to for it as a result, we anticipate hopeful watching the fiscal fourth.
Deferred revenues as $177 million with young with water.
$41 million compared to 428 to due primarily to the addition of Vips, which the food.
As a reminder, I just would love to do downstairs law.
Which preacquisition deferred revenue, which is eliminated and purchase county I forget.
Cool that's revenue.
non-GAAP results and guidance, but in the 12 hour true business performance.
Adjusted free cash flow was $37 million for the quarter compared to $23 million in Q4 of loss.
You know leftward saw.
$129 million for the full year Cortone hundred 21.
The 22.
Well look at Churchill business outlook.
And Guy that's the 20 Twond just consistent with the preliminary outlook, we provided during our last call.
It's just took 20 twond, we looked at food that's true stable hard margin core business, while also pursuing accretive acquisitions that fit like 20, Twond guard does not incorporate any additional position.
With that in mind, it's that 2020 lucky to be between 448 to 455 million.
<unk> for football Purslane 29 to both actual church was no touch controller to do.
We anticipate a tortue translation impact on a 20 twond.
He was approximately negative 600000 wall.
The year over year wasn't <unk> increase is driven by the phone source.
Full year, rather than you thought you should come up so much worse is almost 70 amongst the 29.
Softer flattish revenues from our Openedge maybe Andy.
And lastly, although we expect they see view like DC I said, there will be made on church for fiscal 2032, the $33 million I mentioned earlier, we do anticipate a year over year decrease in DC I'd rather.
Couple of Baltimore Southern Peterson.
To the timing of OEM.
Furniture, we'd yes, we expect full year earnings per share of 2087 cents $2 and 90 twos.
The new proof of 18 to 23 cents.
Our seventh to Nonpersonal versus 29 too.
Yeah, that's a period of currency translation impact on our 2020 bps, there's multiple cheers.
Oh, if you have to targets flux football.
<unk> <unk>.
Excluding the impact of ups, we expect lower operating expenses for 20, twond compared to 22.
Second.
Expected tax rate of approximately 20%.
It's hard not 29 too.
Charles like 2020 bps guidance includes by.
$50 million Shouldnt purchases, we are talking to keep a younger ones.
We continue to believe that share repurchases provided solid longest returns to shareholders.
Just a with a thoughtful all attrition policy.
As it is to buyback shares the levels sufficient to offset the annual dilution from our standpoint.
Of course, we have the additional flexibility to recruit.
Good deals or suspend buybacks, depending on the side they timing if I'm going to pivot.
Well as market conditions.
We expect approximately three to four cents of Rvps improvement to the full year.
To be due to we're talking to 6 million share repurchases.
It's football operating margin for 20, twond to be approximately 30 and our personal.
An improvement.
Hundredbasis points, when compared to 29 to <unk>.
We continue to target operating margins in the high 30 range going forward more confidence in our ability to run our operations efficiently, while also making investments required to sustain has strong.
Our adjusted free cash flow guidance for 20 Twond.
We have a hunting 45.
Hundred $50 million, an improved $16 billion to $21 billion versus one.
A business continues to generate strong cash flows.
Okay, increasing 20 twond.
Every time early by improved profitability.
Higher collection.
Turning to adult it's that she wants one to one split rather than to be between one 113 on though.
The year over year included 23% to 26%.
If we pools and anticipated currency translation impacts of approximately negative 500000 goal.
On a possibly going to basis increase is expected to be one between 27%.
The increase was primarily due to the addition of books.
As well as much higher rather you from you see all.
Just a trusted to more than doubled versus Q1 of last year.
Real time, and although we torture.
Although we expect full you love it because if you actually declined by approximately 72%. The majority of using impact will be in Q2 to three which are both expected to decrease more than 50% year over year.
<unk> earnings per share.
He wants them to 71 cents for the first quarter.
That's a 50 cents due to one of last year and includes 30% to 42%.
This is a part of the way to <unk> contribution, but also the ongoing efforts to manage our business, especially when.
We expect that spoke to split she wants to decrease year over year excluded the impact such that.
It's best to talk to translation impact on Q1.
It's probably too.
In closing I'm very pleased with our strong finish for 20 won't be.
Positive all for 20 Twond.
Which is better than expected revenue and earnings per share in Q4.
And with ups, which performing better than our original business.
We are well positioned to sustain our momentum in 2021 deal.
Delivered record adjusted free cash flow the 21 team.
So Jeff can vary significantly improves the 20 twond.
Perhaps the best indication wallboard fishing approach to running their Trump.
It would continues to be thoughtful prudent and making investments.
Will strengthen.
Well on a personal though.
Honor and privilege to serve the fear fall for progress over the last three years.
Probably what we've been here that the topless units on.
I'm very confident because the company with the good news there can be taking over as CFO .
Paul This is well positioned to deliver.
Its financial goals for 20 Twond.
Lastly, golf.
Sure.
With that.
Turning over to go after June .
Thank you Paul.
That concludes our formal remarks for today I'd now like to open up the call to your question I ask that you keep your remarks to your primary question and one follow up.
I'll hand over to the operator to conduct culinary session.
If you look like.
<unk>.
<unk>.
<unk>.
<unk>.
Sure.
[laughter].
Hi.
Start asking a question.
Your first question.
<unk>.
Oh, Great Blackbird Scott.
Let's see congrats Paul and Greg.
Yeah, that's works of art.
I hope you get one of those.
Uh huh.
[laughter] started to stop.
Yeah, so yeah, so I want to out.
The your best you made a remark about you upgrades to open as well.
Providing.
Good.
And.
That's an opportunity.
Yeah.
<unk>.
Oh functionality.
Monitor grace and upside in terms of.
Functionality expansion from those upgrades or or is it more about.
[noise] I you know Stephen Jungle. It is about you know capacity expansion as needed and and it gives about retention I actually want to talk about retention first because as you know you know keeping that core business, a stable and keeping them with us.
And keeping our renewal rates as high as they have been is really the primary goal of doing what we've been doing on methodic side them customer customer support side.
So go back really is is the primary Oh, you know function, yes, you know or you know.
It does create the opportunity or could eventually get additional revenue opportunities, but primarily thought two feet expansion.
Got it got it Okay, and then obviously M&A.
We know how did we have a good idea carry our.
You had.
Home run with it slips.
Thank you.
The pipeline to had.
You looked at <unk>.
<unk> kind of looking at the state of your.
Progress towards the next deal.
Feel like this.
Is there a material change from 90 days ago.
It was still fairly form it in your remarks I'd like you are talking to go do a deal. This year, maybe just any additional color. There you can give us.
So you know if either it is its first of all thank you for you find the marks about if switch you know we have old is to continue to target that because it's just like Ipswich going forward, which began yeah, then get greater scale and these cash flows.
Our pipeline continues to spend the.
We see potential opportunity.
For future transactions within the software infrastructure space.
You know with the current market conditions. We are so confident that he can execute them does M&A strategy and double up business.
You know where they need to you know I don't want to forget specific timelines on because that always been creates a a I'm not a realistic go up a pressure that because it's something you become are you going to relax look like they have to me but deadline.
Yes, that's right we are sacrosanct.
And so he will stick to what criteria, but I mean, despite saying that I I'm confident that you can actually execute on this so I feel good.
Steve.
So.
Hello.
Yes people are still there.
Yeah Okay.
Okay. Thanks.
Yeah. Thanks.
Congrats.
Oh that's worth.
Great. Thanks.
Next question next question.
National Security.
Hey, guys congrats on the core and congrats Paul.
Thank you Matt.
Sure.
You I think you mentioned in the prepared for barcode scanner yeah. They.
Maybe indesit, a little better products, so that switch as they came in or if they choose auction diversions. There maybe a couple other products that you highlighted that maybe part of the reason for the upon the top outside of the business. This quarter. So I'm curious how you think about no whether you'll continue to invest in Ipswich or.
Other opportunities to continue driving organic growth in that business.
So you know a match we need good question you know the.
There isn't there could be couple Gotta go up in that business. You know there that business is ahead of projections that he had a but you know from our perspective, the investment that we're making very similar to what we're doing with all of all the products I would just to make sure that that business stay strong you know, we don't see you know much easier.
<unk>.
You know growing organically.
With that the public portfolio. So it is can be more about again retention keeping a solid keeping the momentum going which we believe we can do.
You know I actually see topline growth, primarily coming back from acquisitions. A you know the are the biggest component of Oh are you know.
Slide 20 guidance, though in terms of topline revenue growth is the full years contribution of Ipswich, right, which is offset by de <unk> as Paul said because of timing or for young people. So that really is is really what is driving it.
You know we continue to invest in it to make sure that the customer stay with US you stated, we keep a competitive product and the business momentum continues.
Okay. Thanks, I guess my follow up.
The with respect to the large threat you see ideal.
Can you point out any key factors are factor that caused the over the finish line I think you mentioned that it was competitive so you know.
I guess, how did you get there and do you see and I guess should we see that the worn off or is that she's items, maybe if there was an expansion of the DC I town.
The board direct customers.
So right now Matt I don't have enough of a trend to call. It eight a. you know.
A trend right I mean are we don't have an update appointing site, but that said we have the best offering one this view for US a was a combination of factors. It was a combination of the depth of the capability of all connectivity. So not just the fact that we have brought connectivity given.
The large number of data sources, but the level of upon it would be in the depth of that contact with the capabilities or hi, the scalability performance and security or really the key differentiators, there a and really big continued to be why.
Direct as one of the OEM customers continue to use this use this technology over and over and over again, but I don't I don't see this has a big you know a change you know driver and changing the trajectory of <unk> at this point.
Great. Thank you.
Hey, Thanks, Matt.
<unk>.
Well take our next question.
Hi, Good evening, let me just start out by saying nice job on the quarter and Paul Congratulations on your off your retirement [noise].
Thank you Mark right that thing Thank you Mark.
Just a couple of questions, you're just going back to DCR Yogesh in your prepared remarks, you called out a handful of positive developments in that business.
And that's that's a business you typically don't see too many of those and I was just wondering if you could you know it strikes me that something has changed I was wondering if you could maybe address any internal changes you've made at the company a interpret your discharge business.
You know I think you know Mark is we have a continued focus on on our core business is a you know whether it be sai or or any others in it is a.
It is that continued focus we continued to also come out with new capabilities and invest in those technologies. So all those things how Ah that said right.
I do want to a it'll be careful inox. They suddenly be that I'll. You know we were seeing a great trend among direct customers, even when we do you lose share that but we all feel good about the BPCI business. If this can be a solid business as you know mark the direct part of that business is really quite small thing.
So the overall business a if he does it really tiny part of the business. So so you know that would have to move meaningfully for us to then start seeing something.
That is meaningful to progress as a whole.
Great. Thank you and then.
Last quarter, you announced a bigger operations, rather convey business for being scaled back up pretty meaningfully I was wondering if for all the.
Scale back activity shows I've actually taking place yet.
Yes, they have a we completed those those changes.
And you know we still have some investment in that area, a mark because we do see some opportunities there, but it has been scaled back significantly and our 2020 guidance includes.
The scaled back.
Investment in that area and so.
Yep, all that was completed.
Okay, Great and then finally, you called out in your prepared remarks.
Direct <unk> director.
To be truck to open a steel I was wanting to just give some additional color.
<unk> Peters her.
Prepared remarks around the deal.
Yes. So so the one that I highlighted were was a large you know mortgage company and financial company that does Mark. It is they you know the key there was a baby or the large part of the view was more than the expansion side because that business is going to need more more licenses due to.
Although the the bigger bigger footprint that they need of of the product. There was also a component to it which was related to you know and there's no technologies from within the only speech so that they would get ready to how big do Openedge 12, as you know Openedge 12 has.
So I'm, not just performance and security, but some additional capabilities and characteristics as well and and so to get school you them full advantage of those they need to.
Sometimes by additional products, we Didnt next week. So so that was an additional sort of cherry on top of opinion that'd be.
We also saw some something some deals with direct customers.
Which were around compliance and and a and those are good deals as well. So so we had to openedge had his or her to you know good solid.
Q4 in the direct business again, as as Mark you're well aware that direct business, what we use quite lumpy a it depends on when these customers wanting to their into their thresholds and and feelings on there on that capacity and so on and so far.
So so it isn't something that you know it is a you know steady repeatable all the time type of thing, but yeah, we'd be happy that whenever it happens it helps us make sure.
Bad debt it offsets the little bit of churn that happens inside the OE directors.
Okay, great. Thank you and Paul Congratulations again on a retirement that's all for me.
Thank you Mark.
Sure.
Yes.
Hi, good run them congratulations on that great quarter, and good outlook for 2020 M. call on that good luck with your asset.
Hi, I'm actually there's been a lot of good questions asked already.
Just wondering if you had anything that you could call out there.
I'm not geographic basis, just isn't anything to call out.
And Ah Ah. Thank you very much a four for the confluence regarding the quarter and lead performance you don't tell me.
Oh, you know overall, a geographic perspective as you might be aware you know if switch is predominantly in north American business.
And so the North America performance and year over year growth.
In in Q4 was significantly higher because of that compared to other reasons.
You know overall.
No. It was a good performance across the board across all regions.
You know we had a Ah Ah you know a solid performance across any a lot diamond <unk> as well.
Okay, and I must also.
Thanks again on yeah.
[noise] <unk>.
Thank you all for joining the call today as a reminder, we plan on releasing financial result for our fiscal first quarter of 2020 on Thursday March 26, 2020, after the financial markets close and holding the conference call. The same day at five PM Eastern time.
I'll now turn the call turn the call oversee Oh gosh for his closing remarks.
Thanks, Brian .
And excellent 2019 is behind us and we're well positioned for success going forward with continued strong execution minute focus unbeatable accretive M&A.
The company's that strong as it has ever been financially.
And Anthony Folger brings a wealth of knowledge and experience as we moved into the CFO role.
He is committed to our strategy and I'm confident he shares I'll focus on driving long term shareholder value.
I look forward to introducing him doing about blind that's to us once he starts out with us.
In February and thank you again for joining us today and I look forward to speaking with you over the next quarter's conference call.
Can buy.
Thank you for your participation.