Q4 2020 Earnings Call
A year 2020 earnings call.
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I would now like the hand, the conference over to your Speaker today, Peter Laue Docomo, Vice President Investor Relations. Please go ahead.
Good morning, and welcome on the call today, we have Josh James our founder and CEO, Bruce belt, our CFO and Julie Keogh or Chief Communications Officer, Julie will lead off with the are Safe Harbor statement and then on the call Julie Thanks, Pete Our press release was issued before market open and is posted on the Investor Relations section of our.
A website, where this call is also being webcast.
Statements made on this call include forward looking statements related to our business under federal Securities law, including statements about financial projections, the plans and expectations for our go to market strategy, our expectations for our sales a new business initiatives and our financial condition. These statements are subject to a variety of risks uncertainties and assumption.
And.
For a discussion of these risks and uncertainties. Please refer to documents we file with the FCC in particular today's press release and our most recently filed an annual report on form 10-K, and I'm. Most recently filed quarterly report on form 10-Q. In addition, our business faces risks associated with the cobot 19 outbreak.
These documents contain and identify important risk factors and other information that may cause our actual results to differ materially from those contained in our forward looking statements. In addition, during today's call. We will discuss non-GAAP financial measures, which we believe are useful as supplemental measures of don't must performance.
Then revenue unless otherwise stated we will be discussing our results of operations on a non-GAAP basis.
These non-GAAP measures should be considered in addition to and not as a substitute for or a nice relation from GAAP results.
Please refer to the tables in our earnings press release for a reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measure.
With that let me hand, it over to Josh Josh.
Thank you Julie and Hello, everyone. Thanks for joining the call.
We know a short notice, but we think it's important to share a strong Q4 performance for Q as soon as possible, particularly particularly given this crazy time that we're in.
We know as it relates to coded 19. This is a trying time and in times like these are most important focus is on our people and their families in regard to everyone's health and wellbeing weeks ago, we implemented common sense protocols, including putting restrictions on nonessential travel supporting work from home initiatives and change in the format of our annual user conference to online only.
Our thoughts are certainly with everyone who is affected at this time.
I'm going to keep my section short short and Sweet I want to make take the I want to take a more reflective view and highlighted the progress. We have made since we became a public company and then Bruce will cover this quarter's details.
So this is our seventh reported quarter as a public company in the last seven quarters alone. We've made significant progress on a number of metrics.
Number one our year over year subscription revenue growth has averaged 28% and has never been below 24% for any quarter number two our subscription gross margins have improved from 71%.
When we went public to 77% today.
Number three our gross retention rate has improved from 82% to 91% this quarter.
Number four are contracted annualized recurring revenue is now over $160 million a size and scale that gives us the ability to cash flow positive quickly if we need to.
Number five.
Our customers under multi year contracts have increased from 38% of our customer base. When we went public to 55% today.
Number six.
Over that same time period, our operating expenses have decreased from $55 million per quarter to $53 million per quarter. Despite our growth in recurring revenue.
Number seven we've decreased our quarterly cash burn from $36 million a quarter to now $15 million.
And lastly, number eight we've been able to accomplish all of this with the same head count level, we had about four years ago and.
And we still have sufficient capacity to continue to deliver significant value to our customers.
Also with an ample amount of cash to run our business. However, we need to in whatever environment. We're in.
I'm very pleased Im very pleased with these accomplishments in this past quarter, including signing one of the world's largest companies Amazon as a customer and I look forward to continuing to execute well against this large market opportunity before us.
The path to achieving a cash flow positive position.
With the cash on our balance sheet has become clear every quarter.
And with that I'll turn it over to the Bruce. Thank you Josh we're pleased to deliver solid Q4 again across all guided metrics.
I'll review the details behind this performance followed by providing first quarter fiscal 2021 full year guidance.
Our better than expected Q4 was driven by higher renewal rates strong up selling into our installed base and the entirety of our business delivering above expectations.
Our enterprise team capped off a record breaking second half of the year.
Our corporate team produced the largest them out of new AC HCV business for the company and was well above our beginning of the quarter expectation.
It is noteworthy that we achieved our results with minimal contribution from large deals.
With our top five new business deals comprising only 5% of our billings this quarter.
Our focus has been on increasing our recurring revenue base and I'm pleased that our subscription revenue grew 24% year over year, driven by an improved mix of new subscription versus services revenue and by improving retention rates.
I also wanted to highlight how encouraged I am by the continued improvement in our existing customer lifetime value or LTV profile.
As both retention and recurring gross margin continued to show incremental improvement.
Significant benefit of the SaaS model is that strong improving LTV fundamentals provide a core of financial visibility and periods of external market uncertainty.
Recurring revenue base is broadly spread across a wide range of industries, we do not have significant concentration in any one industry with no industry, representing more than 15% of A.R. and most representing significantly less than that.
As John also mentioned our gross retention rate was 91%. In addition to better than expected retention Q4 billings benefited from about 2 million of renewals in connection with Upsells.
We had expected these renewals become in the first quarter fiscal year 2021.
This did not affect our reported retention rate, but it does influence our Q1 billings guidance.
We achieved a net revenue retention rate of 120% and our North America enterprise business.
We now have 55% of our customers under multiyear contracts at the end of Q4 compared to 42% at the end of Q4 last year.
Our remaining performance obligations or ARPO grew 17% compared to the same quarter last year.
Our Q4 revenue was 46.2 million a year over year increase a 17% subscription revenue represented 86% of total revenue.
International revenue in the quarter represented 25% of total revenue compared to 24% in Q3.
Our subscription gross margin was 77% up more than two percentage points from 74% in Q4 last year.
We plan to obtain additional leverage out of our subscription cost of revenue overtime as we continue to effectively manage our datacenter operations through finding efficiencies better utilization of certain services and continuing to optimize our software that runs the double platform.
We believe we can achieve subscription gross margins of over 80% in the long term.
In Q4 operating expenses increased by just under 7% from last year.
Even though revenue increased by 17% year over year.
We did take a top cost reduction action in Q4, and our non Japan APEC region.
Due to underperformance relative to the investments we have been making in that region.
We will redeploy those savings in North America, where we're finding great success.
The net effect of increased revenue, while effectively managing costs allowed us to improve our operating margin by 12 full percentage points from the same quarter last year.
Our net loss was 23.7 million in net loss per share was 85 cents. This is based on 28 million.
Weighted average shares outstanding basic and diluted.
Turning now to our balance sheet as of January 31, we had cash cash equivalents in short term investments of approximately 99 million and amount. We believe is more than sufficient to allow us to become cash flow positive.
Our adjusted net cash used in operations was 15.3 million and improvement of.
Point 9 million over the prior quarter, and a 45% reduction compared to Q4 the prior year.
Now to discuss what we expect in Q1 in fiscal year 21.
We are very aware of the uncertain environment and our planning for different scenarios.
Our guidance does not factor in a downturn our slowdown because at this point, we have not felt any material effects on our business.
In fact in Japan.
Where there is more societal upheaval, we continue to close business.
We believe this is in part because our product set our products that helps drive revenue.
Find efficiencies and help businesses operate remotely.
I would say that relative to companies that rely on large amounts of new business from new customers.
We are in a better position because our current topline is driven by a large dickey renewal base.
The majority of which is under multiyear contracts.
Our new business comes mostly from current customers.
Better easier to sell to that obtaining new customers.
And most of our quota carrying reps, primarily so over the phone, which is an asset when traveling as restricted.
Also we've been able to grow our business without increasing costs and have demonstrated an ability to control and even cut costs if needed.
We're entering fiscal year 21, with 20% more pipeline than we had at the same time last year as result of all the work we've we've been doing to improve marketing operations.
On the sales plays.
Form relationships with partners and automate the proof of concept process.
With that as background, we expect Q1 billings of between 40 million in 44 million.
Had 2 million and renewals not been build in Q4, our billings guidance would have been 42 million to 46 million.
We're planning for fiscal 21 billings to be between $205 million and 210 million.
We are planning on our Q1 operating expenses to be up from Q4.
Although we are excited about having double palooza online.
And have over 5000 registered rents already our operating expenses are driven impart by our annual user conference costs that cannot be recovered.
And higher payroll related expenses in Q1.
For the year, we expect our operating expenses to be up slightly from fiscal year 20.
We expect Q1 adjusted net net cash used in operations of approximately 14 million.
Expect full year adjusted net cash used in operations of approximately 50 million.
We believe we will be able to exit this year with a quarterly cash burn rate that gives investors the confidence they're looking for that we can achieve our cash flow positive status with the cast we have on the balance sheet.
Not a formal guidance for the first for the first quarter fiscal year 21, we expect GAAP revenue the in the range of 46 million to 47 million.
We expect non-GAAP net loss per share basic and diluted of one dollar for dollar eight.
This assumes 28.4 million weighted average shares outstanding basic and diluted.
For the full year fiscal 21, we expect GAAP revenue to be in the range of 192 million 298 million.
Representing year over year growth of 11% to 14%.
We expect non-GAAP net loss per share basic and diluted of 3022 cents to 3032 cents. This.
This assumes 29.2 million weighted average shares outstanding basic and diluted.
In closing, we're pleased with our results for Q4.
I look forward to our fiscal 21 year.
Please join us on March 18th for Docomo Palooza online.
And our analyst and Investor program.
You can register for those that demo Palooza dotcom.
With that we'll open up the call for questions.
Operator, please do so.
Thank you.
To ask a question.
The press Star then.
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Our first question comes from the line of sight.
With Morgan Stanley. Your line is now open.
Good morning, and thank you for taking the questions and congrats on the beat on billings this quarter.
Bruce I wanted to talk little bit about guidance and thank you for walking through some of the assumptions on on Q1 and for the full year, specifically as it relates to the enterprise sales.
Sales team how are you thinking about the potential traveled assumptions I understand you have.
Quite a lot of carry a quota carrying capacity I'm doing inside sales, but in terms of just the.
The enterprise sales force, how much of how much contribution sort of assumed and full year guidance now what sort of disruptions are you anticipating in terms of the ability to close deals because of you know people on the office or you know just not getting enough faced headed for those customers.
Yeah. So.
We one of the.
Nice assets, we have going into the quarter as just a strong pipeline that's been building nicely up to this point.
And we think those activities that we've been doing.
Ought to continue to build the pipeline.
Even against the fact that.
Our some of our sales team not all of it but some of it has historically.
Conducted the meetings in person.
We think in this environment.
Given corporate America, and maybe across the World generally is all facing the same issue.
And we're all.
Making the best efforts, we can run the business as normal.
So I think and part of its a hope that part of a thing.
Is that.
We're all going to be quite accommodating of doing business over the telephone in fact.
It might be and like generate a new normal that's even more healthy then the historical way we've done business.
The other comforting a fact is that.
A lot of business, particularly in the enterprise, we get from our current customers and that's very that so much easier to do over the phone because the relationships already developed.
So we you know a very aware of what the pipeline answer enterprise.
With the activity levels are we think we just baked in.
Normal.
Caution into the numbers.
Nobody really knows.
How the.
You know how the current environment is going to play out.
But we generally think we're well positioned or have a lot going for.
And we'll continue to keep the business activity as high as possible even against the.
Travel slowed down, but it's not a travel doctors to travel slowdown.
Understood and maybe for my follow up is just to.
A follow up on your remarks, then a more add does adverse scenario can you sort of walk through the levers you have that just those at your disposal to sort of.
Could you can make progress on the cash cash burn side of the equation appreciate it. Thanks.
Yes, well on the topline, we're just going to really step up the activity from the telesales effort.
And.
No just get even more aggressive on where we think we can do and probably deploy more resources to protect the topline.
On the cost structure.
We have just.
Ample room to operate today, which really translates into.
We have the capacity to cut back the costs, if we need to.
Ill.
Note that Josh and I have been through this before.
We we know when we get to a point where.
There is a real slowdown facing us, it's pretty clear and away it was going to happen.
And we took aggressive action.
And if we get to that point, we'll have to do the same we hope it doesn't play out that way, but the reality is that.
The world's going to slow down that we're going to have to react to it so.
So.
Looking at the cost structure.
Very very aggressively and.
As I pointed out my notes.
We had already made a move what we did not like the retire where we're getting on our investment or we'll redeploy it.
We'll do that with a different lens, if we find a slowdown as we're facing a slowdown.
Appreciate it thanks, Josh.
Thank you. My next question comes from the line of Bhavan, Suri with William Blair and company. Your line is now open.
Hey, guys, let me Echo my congrats, especially on the LTV to CAC metrics I was a really good to see I guess I wanted to just push a little bit.
Centuries question just on on guidance you know Josh you touched on you know quarter seeing growth at less than 24%.
The Guy it's both revenue and billings seems conservative just any more color what else you baked in there sort of I know Bruce you said sort of normal conservatism.
Think about it pipeline is 20% higher than what it's been you've seen net dollar retention rates go to 120% for enterprise just trying to sounds are the conservatism of the level of conservatism baked in here, given you're not expecting sort of a global slowdown just trying to say about part, yes, Josh I would say first that we are.
The the metrics that you just quarter to the ones that we're seeing that are really positive.
We're seeing a lot of.
Great Positivity also coming from the city the sales plays that we're running the.
The new messaging, that's really resonating with our team and how they get out in front of our customers.
The way that customers are talking to us about future plans and how you go through and look at the big deals that you get in a quarter and most of them or customers that have been a customer for a few years and their standardizing on you. So there's a lot of there's a lot of great things taking place.
But at the same time, we're definitely aware that the worlds a different place than it was two months ago.
So, although we haven't seen material impact on our business we haven't seen.
Things happened to the contrary like Bruce mentioned in Japan.
Where there are much more of a lock down then we are in the us.
All the kids got sent home over 50 employees over there colonists, saying, we're going to work from home because no one's much in our kids.
So we were very curious about how that business was going to perform and yet we are getting new new deals in new contracts.
So I think I don't know Thats exactly how the U.S. responds if we're in a similar situation, but business is still getting done so as Bruce mentioned I think people are going to be pretty.
Open to trying to do business over the phone. This is a different kind of an environment than the bubble bursting in 2000 or.
You know the.
The bank melt down that we had in 2008. This is I think kind of a call to to the humankind. We've got a band together and figured this thing out and I think we're going to see a different response when it comes of that doesn't mean, it's not going be negative an overwhelming but I think it's going to be.
Different kind of set of experiences than than we've had before in other downturns. Yeah. I think I think I just have to take this.
This Ah moment just to say.
We set guidance.
The way, we we normally do but it would be very imprudent for us sitting here today, saying, what's going on that environment to expect a big beat.
So I'm just got stating the obvious given the Mark it's really just based on the macro environment.
Got it got it Super helpful. And then I just wanted to touch a little bit on bake offs. Specifically are you talked the last couple quarters doing more bake offs seeing really good win rates on these opportunities. We can demonstrate the nature of the platform just love to understand how that wasn't Q4.
And how much of his focus area you guys sort of thinking about that in 2021 to think about your sales plays the idea of bake offs, bringing data and how you're thinking sort of about investing in that area. Given the win rate. So let us know how to quarter was the plan around sort of those plc vehicles sequentially. One thank you.
Yeah. Those plc is definitely go well for us and it's.
Not necessarily a huge area of investment relative to anything new that we're doing other than the expense associated with doing it.
But it's it's a motion that we certainly understand it I think is more getting the sales reps to have that be one of the steps that they automatically go too.
Making sure that they don't shied away from it making sure that they all understand that hey, when we do this hurt our close rates go up and so I think it's a motion that you're seeing the sales team and management team. The sales management team. They understand that this is extremely helpful for us and she'll can still continue to see us do it more and more.
And if you look at the big contracts that we won last quarter and the same thing the big ones in our pipeline today in almost all those cases there is there's a plc, that's taking place as well that really helps convince those customers and get some comfortable with with standardizing in a meaningful way.
Got it. Thank you guys. Thank you.
Thank you. Our next question comes from the line of Pat Walravens JMP Securities. Your line is now open.
Oh, great. Thank you.
And congratulations on Q4 you guys.
Thanks, Pat So Josh I guess.
My first question would be are you seeing it may be too soon but so are you seeing any.
Of your customers or prospects.
Hi, budgets or delay projects.
Yet because of the.
The current environment.
We haven't seen them cut projects and or delayed projects yet we've just seen.
A lack of travel.
We've seen a lack of conferences and that's definitely something that I think I'm sure everyone is trying to adjust to you look at your marketing pipeline in your budget in the way, it's allocated and you've got a bunch of units in there.
And that means you got to generate those leads a different way so flexing other muscles that you have.
And businesses still getting done there's still individual meetings that are taking place people aren't going to conferences and not going where there is.
A ton of people that are that are in close contact with each other but.
Especially in the enterprise space the big meetings are still taking place. So it's not something that we're seeing the sector business. Yet. It's just you kind of be interests are not recognize that.
Changes taking place.
Hopefully, there's a there's a new normal and we get to new normal relatively quickly.
If there is not a normal quickly than we're prepared we're prepared for that as well.
But that's why I highlighted Japan was it was fascinating to me and actually shocking to me when.
I'm laying there my bet at night, and I get to get an alert on my phone from don't want to pick it up in Oh, you just closed the deal in Japan like what I think we closed the deal in Japan, and two days layered seem to happen again I'm like this is kind of crazy and.
One of wasn't new logo, even so.
I think the the great.
But we also have is something that Bruce mentioned, but the fact that a big chunk of our new revenue that comes in every quarter.
His upsells from our current customer base that we invested a lot to build.
But that I think gives us some.
Not as much risk as you might see otherwise since you can go back to that customer base for the already familiar with you and you can do business over the phone and through video conferencing.
Awesome. Thank you and then.
Can you just talk about the you mentioned that you did a deal with Amazon and in that same vein.
It's not the partnership with Mark with Microsoft and what's going on it sounds like.
Yes, our ecosystem continues to evolve and in developed we're very excited about it we're continuing to invest in it into it.
With those acquisitions. It also placed in a short period of time it created an opportunity for a lot of people looking for a new dance partner. We also had many customers come to us and say.
We really like we've been doing this for the last couple of years can you help us do this with.
And get this data out to all of our customers. So it's the ecosystem is really starting to become a part of our business that you have a lot of confidence in the future of and Microsoft's part of that Amazon is a part of this.
And then the.
Amazon is a customer mentioned that I made.
That's outside of the ecosystem, that's just them as a traditional customer.
Great. Thank you.
Thank you.
Thank you. Our next question comes from the line of Brad Zelnick with Credit Suisse. Your line is now open.
Excellent. Thanks, so much for taking the question and congrats as well.
On a nice close to the to the year I was hoping to get an update on on your go to market and it was surprising actually to hear that your top five deals in the quarter represented no more than 5% of bookings just because it for most software companies that are selling valuable solutions into enterprises.
You would think Q4 is actually when the magic happens that's when you're seeing that large deals. So just as you think about the target market and how you're going after it and we think about the you know the stratification from large enterprise down to the SMB wherever you are making the investments and and focusing the reps and where you incentivizing them to go this year.
Well, we've got our reps split up into a few team. So we have a strategic accounts team which is essentially.
Fortune 500, and the private 100 and so.
Thats there that's their patch and they go into to sell into there and and if you look at our big customers. Yes. This last quarter I think that was more making the point that.
We were able to hit our numbers without anybody swing it in a meaningful way and maybe would have even been larger I had we had you know any monster deals in there, but if you look at our top 10 customers base by a or are they grew the total number grew pretty substantially you have some.
Really big customers, we have all 10 of our customers are more than a million dollars in air our top 10.
So we have definitely a really healthy strong big strategic enterprise business and.
We also have a business, it's focused on the $1 billion to $5 billion and revenue band.
And a bunch of folks that are focused on that and then we have a corporate team that's focused on sub $1 billion, that's 100% done over the phone and then we have entered our international business. After that so that's how we break it down and.
When you put budson seats focused on different patches and you end up getting sales in those areas. So it's not really about incentives that we put its more about the people that we put in those seats.
It makes sense, Josh and maybe if I can follow up with one for Bruce it's great to hear all of the.
He evidenced that that's driving strong net net expansion and retention that you've talked about can you maybe give us a sense of the different levers whether its price increases number seats for existing use cases.
New use cases in company divisions that you're breaking into how should we think about the dimensions there. Thanks.
Yeah. The tier two big drivers are you know within a certain use case, certainly expanding the number of users.
And we're getting better and better at making that move be much more substantial than where you have in the past.
And the other is certainly I would say almost unlimited number of use cases.
So we're finding.
What's where it and account.
And they really experience I call. It the magic Adele mall that they can finally do things on their phone later than ever do before and get information. They never thought it was available to them.
You know in real time.
Just spills over to the executives who are sponsoring this counterparts.
And that we're getting very very good at making the case internally and helping our champion spread the use within groups and then what we do that we're also very good at bundling that into a reasonable size deal and our deal sizes have been going.
On average so those are those are two big levers and.
Yeah, we intend to be.
Pursue those quite aggressively, particularly given this environment because again.
It just so much easier to work with the customer you already have and we know we have.
Use case after use case after use case.
Demonstrates very high value.
With support from.
The business people within our customer base. So those are two of the big key levers we have the we'll certainly take advantage of going forward.
Thanks first.
You're welcome.
Thank you. Our next question comes from the line of Derrick Wood with Cowen and company. Your line is now open.
Thank you good morning ill Echo my congratulations on a quarter first one Josh.
Obviously, a pension can talk the consolidation in the space in 2019, I mean, how how are you feeling about the competitive landscape and I'm wondering that obviously you guys are seen strength on the corporate side do you think that has anything to do with kind of the change in the competitive landscape some of the independent vendors getting acquired and that opening.
A lot more opportunity for you.
Yeah, I mean, we're definitely the consolidation is has made us the strong independent and.
The one also that's agnostic for our customers in terms of where they can where they can store their data and.
They want to have someone that can partner with all of the big vendors because most of our customers use all of those vendors and as you know some of our competitors went to those went to those big vendors. So.
That's that's definitely made us the I think a very attractive partner when it comes the ecosystem and then I think it's just also been really fun to have people recognize our business I mean, we have customers and partners.
Who seem to recognize some of those metrics I talked about the beginning the fact that weve never had a cut a quarter grow less than 24% or subscription revenue that we have a gross margin and 77% gross retention rate 91%.
We're getting to be a decent size in terms of scale. We've got a lot of multiyear contracts more than 55% and then to also see that all that take place when we've got our cash burn down to 15 million, where there's clearly a huge focus on getting that number as low as possible as quickly as possible.
I think we're just in a really good spot to be create partners for our customers and our partners over the long haul.
Got it thanks.
Bruce maybe one for you services revenue was down year over year I think there was a tough comp with some onetime <unk> and there are a year ago, but how are you thinking about your services business and whether you want to grow or perhaps shrink. It then and try to leverage more partners, but what's the assumption as you look at your guidance for the new here.
Yeah, I mean, we really don't think of it as a separate business I mean services is there to make sure that we deliver the value to the customer they expect effect as possible.
And.
That is the you're right in that it had a tough compare to compared to last year because of some of the onetime items that we reported on.
So we'll just I mean generally it'll be steady stay the same percentage roughly because there's just not a lot of variability and.
What customers generally asked for it it's pretty standard. So you know our real focus is just get the recurring revenue up that's really the.
Margin rich Cas generate generating engine and services is just there to support it. So model wise you know it can change as a percentage of revenue on the new business I from time to time, but.
There's not a big focus on it.
We don't want to see a lot of their ability and the and it we don't mind if its shrinks actually is if we're able to deliver this value with less services that they see good for business in our opinion so.
So that's just that's our philosophy behind how we think about that line item.
Great.
Thank you.
Q.
Thank you. Our next question comes on the line of Jennifer Lowe with <unk>. Your line is now open.
Great. Thank you I wanted to follow up on the question that Brad asked a little bit earlier around the different.
Both within the sales organization you'd mentioned that there was some cost savings in Asia Pac and that were being reinvested into the U.S. and maybe to get more specific on that you know as you invest in to the U.S. sales organization. You know how are you apportioning those investments between the different strategies as.
Sales personnel and if that being informed at all by some of that the uncertainty on the macro cyber potentially telesales might be a little bit more durable our or is it you know how are you thinking about the appropriate places to put those investments.
The real metric that we're focusing on his attack.
So we know high return items versus low and we're just going to rebalance kind of the cat portfolio.
To just optimize where we get out of it and that's across both sales and marketing.
So the problem with a pack was it was.
They had nice growth and then we demand as we get CAC in line with certain benchmarks and it did not happen and so we just had to be.
Brutal what the dollars and say, we're just going to reallocated to other areas of business that have higher returns on our money and that's that's the basic way, we do it and it can be across the portfolio of 50 different thing.
And we'll continue to do that because we just have to get CAC in a position that lets us get the growth. This business deserves. So we're just monkey video rating and Iterating Iterating and I'm very impressed what I'm, saying, what we're doing it on the sales plays and marketing operations. That's just putting so much more rigor into that.
And then we have new Chief revenue Officer, who is just extremely disciplined with data.
Metrics and cadence and between the two that gives us a lot of input and determining where the dollars how to go and we're really going to be aggressive about it this year.
[laughter] also and I can find I'm proud to get questions Brad.
Hi, I. It was also a little surprised cannot see more large deals in Q4, I know you've talked in the past about some of these deals that slipped out as earlier in the area that we're kind of kicking around out there to maybe two questions on that first you know did some of those deals that have been in the pipeline convert in Q4 are those still in the pipe heading into.
Okay fiscal 21, and secondly, you had to the extent that some of those large deals get didn't necessarily land in Q4 is that sort of a purposeful.
<unk> on your perspective, and just in terms of how you're selling an entrance into the revamps being made and they go to market strategy and we should expect that going forward or is it just get idiosyncrasy of when things close.
Yes, I think I think I think we're over indexing on that that comment that we made we shouldn't we may we made with a different intention.
But when you look at the business, we have more large deals in our pipeline than we've ever had so.
That's a big a big part of a business going forward and most of his driven because customers are using our product and they are coming to us and saying.
We need to standardize on what we're doing with you and we have a handful of really large pool season are taking place right now.
So that's definitely a big part of a business will continue to be a big part of our business. The particular on that quarterly you're referencing.
I think one of those deals had no decision.
But the rest of those deals either closed or are in the pipeline still.
And I would add.
Going into this uncertain environment for us to be able to post the numbers, we did without the big deal, which is actually what I wanted to see happening I wanted to see basic basic.
Growth not relying on them and then when they come in I would like to see outsize growth. Yeah. So on the fact that we have smaller transactions higher volumes.
Not overly reliant on the monster deals just to kind of hit our guidance I think just very positive attribute of our financial profile as we sit here today.
Great. Thank you.
Can I get any man.
Thank you. Our next question comes from the line of Jack Andrew.
Gentlemen company.
No.
Good morning, Thanks for taking my question I was wondering if you could just drill down a little bit more on what sales place books are really resonating for you. These days is it something focusing specifically on the office of the CFO or CMO or what else is really.
Helping you these days.
Yeah, I think Jack this is John Miller.
Yeah, Chief strategy Officer, Let me, let me take that a little bit. This is the this is an initiative that I've been driving so a couple a couple of things one is we really kind of.
Been able to solidify the messaging for the company.
Down to some some key value propositions and we just tell our customers that we offer them be I leverage.
Cloud scale in record time.
And each of those three components of that statement really core value propositions, the demo selling into customers.
And where we're seeing that matter is in the lines of business, where we've been focusing the sales team. So those would be the finance organization sales organization, the marketing organization and the product organization.
And these organizations are all driven by the need to get results very very fast and they have to do it at scale and they do that by leveraging these systems that theyve got in place in the investments that they've already made.
So as we as we work with the sales team to hone the value proposition into those four lines of business.
I wouldn't say that there is one that standing out in particular, there all moving moving quite nicely in the sales team is absorbing those value props to go directly to those lines of business and solve business problems.
The deliver.
That deliver these kinds of business results at really incredible speeds. Unlike any other systems that they are using.
Great well appreciate the perspective on that just as a follow up then could you maybe just update us in terms of maybe some of the process is that you have now to ensure that I T is not necessarily an impediment to to your sales cycle and how do you make sure that I T doesn't view docomo is potentially a competitive to what they're doing.
Sure sure good question, well and I'll go back to that to that statement B. I leverage cloud scale in record time.
When we talk about leverage what we mean is that the systems and investments that that I'd. He has put in place or other investments that are that are in place around your employees other processes.
In the vast majority of cases, there's not a reason to rip the statement the those investments out it's about getting leverage from that.
Lot of those systems are great at what they do they have either got a first mile problem or last mile problem, how do I get data into them more efficiently how do I get data out of the more efficiently and in a more insightful actionable way and so there is a very strong complement there and so our position with I T is a very complimentary one.
Where we're helping them leverage their investments and get.
Get a time to value that.
It is much shorter than they've experienced in the past we view it very complementary.
Great Thanks, and congratulations on the results.
Thank you.
Thank you.
We have no further questions in the queue at this time.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.