Q1 2020 Earnings Call
Yeah.
[music].
[laughter].
But they welcome to the talents first quarter 2020 earnings calls.
Stays conference is being recorded.
This time I would like some conference over to Lauren Sloane. Please go ahead.
Thank you. This is long file an investor relations for talent and I'm pleased to welcome you to challenge first quarter fiscal year 2020 conference call with me on the call today, Italian C.E.O. quite they'll be not and P.F.L. Adam I.
Not quite good today's presentation or executives will make forward looking statements within the meaning of the federal security.
Forward looking statements generally you relate to future events or future financial operating performance and involve known and unknown risks uncertainties in other factors that may cause our actual results before my third achievements to defer materially from those contemplated by these forward looking statements.
Forward looking statements made in this presentation included but they're not limited statements related to our business and financial performance expectations and guidance for future period.
Vacations regarding strategic product initiative, and they're related benefits our expectations regarding the market, including the impact of the Kobe 19 pandemic on our market isn't that an operation or expectation. Some beliefs regarding these matters may not materialize an actual resulted feature period are subject to read and uncertainties that.
Card actual results to different materially and that was contemplated protected or high but any forward looking statements.
These risks include those set forth in the press release that we issued earlier today as well is that it's more fully described in the risk factor section of our form 10, K. <unk> in other reports and filings with the Securities and Exchange Commission.
The forward looking statements in his presentation are based on the information available to rise up to date here at you should not rely on that makes predictions the future events and we just playing any obligation to update any forward looking statements, except as required by law.
Please note that other than revenue as otherwise specifically stated the financial measures. They discussed on this call the on a non got basis.
<unk> financial measures are intended to be considered in isolation, whereas a substitute for results prepared in accordance with that we had provided reconciliation <unk> non got financial measures on the most directly comparable gap I didn't feel much or in our press release.
Allen customers that reference by name today.
<unk> any vendor product or service and they are not advise any company or selection or use at technologies products services offenders.
Now, let me turn their <unk>.
Thank you Lauren welcome to our Q1 2020 earnings call. We hope you are all faith and while we're pleased to report extra <unk>. Despite the complexities related to the cup at night cheap tend to like this is the first quarter for nearly half a talent executive team, including myself, we had a great.
Be able to accomplish in our first quarter not made tremendous progress as such I wouldn't expect my gratitude to the entire Caliente, we're delivering a fantastic quarter. We achieved record revenue of 68 million. We ended the quarter with 246 million in total A.R.R., which was up 22% on a constant current.
He basis Archie one performance was driven by the growth of dark cloud solution.
Wild Air are now stands at 61 million up 154% on a conflict current p. basis, and we now have over 2500 12 customers.
We are living in an unprecedented environment, we collectively coupon club at night P. 10 at night and as such talented taken the number of measures to ensure we navigate effectively through these times, particularly to ensure the safety of our employees.
Best support our customers and partners.
I hope our customers. We quickly responded by creating a cause it 90 task force to respond rapidly the customer inquiry.
Helen business strategy is focused on showing our customers the value count when cheaper by utilizing data to drive business outcome.
Our mission is to make data useful for all organizations and ensure that are customer's always kind of access to the trust the data they need to be successful.
I hope it 19 has amplify could be for fast and accurate data now more than ever and the value talent can provide at this P.J. business partner for customers have grown even stronger.
In many cases, our customers have pivoted, how big are using <unk> a number of customers like the logo pharmaceutical companies are now using dark leashes and their work to analyze cause it 19.
Oh hospital, such as Dutch Hospital data or you can challenge to report because the data for National Health Records that sounds.
Researchers are you can count when to organize and integrate their clinical trial data, which includes club at night T. testing.
We're proud of the will go and check played in enabling our customers intermission.
Since joining challenge we have focused on three key areas bent directly feel our growth strategy.
Areas will make a foundation for efficient long-term sustainable growth and will continue to be the theme we expand throughout the here, let me walking through D. buried the focus and then provide Q1 highlight which demonstrate the progress we are making.
First we're building a world class global field marketing and customer success organization that will drive growth and fulfill our objective being the leading global data integration and integrity platform.
Includes you define a complete go to market P.
Can maximize demand increasing sales execution and delivered quicktime devalue for our customers.
The focus is on enabling our business to run more I can't read through digital experiences, including discovery trial purchase deployment adoption to an expansion of our solution.
Second operating exceeding scale required we instrument our business to support ball human philosophy, a bit broke that we are targeting.
This means optimizing every aspect of our operational system prophecies inflamatory.
Third expanding our leadership in the industry around intubation across all elements of data integration M. data integrity, I expect us to be the market and thought leaders, serving our customers need from traditional each you out and E.L.P. integration could be just reading it'd be on.
Actually cheating on these areas of focus one sure we bring the most valuable products in the market that anticipate the needs of our customers, making it easy for them to engage you receive service and support they're a high volume low touch model that not only benefits our customers, but also were shareholder.
Let me now share hobbies efforts are already showing up in our T. one result.
In the face of the global pandemic and disruptive economic conditions. The team led by our fiero inputs they'll brand executed a strong quarter customer growth. An overall performance was largely driven by early improvements in her field discipline targeted at improving the effectiveness and efficiency of our field cost that this was.
Demonstrated by holding all she feels performance metrics upbringing already average feel size hail cycle and when rate in line with past performance, while showing improvement on in quarter I find execution. The team drove the material increase in the person as a closed expansion business developed from in quarter source and nurtured.
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Additionally, here see execution benefits in all theater across the Globe for example in the media during the first 90 days to team developed and implemented new Wrigley field prophecies to drive consistent unpredictable business in the enterprise and mid market segment.
These prophecies directly contributed to a strong Q1 finish in India.
We expect to see the strength of R.D.F.T. in clay significant bowl our future growth.
APEC also quoted material role in the outcome of a quarter at the higher sales growth region, and we're very pleased with her performance given the impact that the pandemic with salt earlier in that region.
Continues to be the largest contributor to work <unk> footprint and we're excited about the opportunity indoor EM at the cloud market research.
And finally, our ability to execute with speed was demonstrated the power bark friction with model, where here, we sell shorter sales cycles and faster time to value for our customers bits and many other difficulties will be critical to our future and our ability to drive skills are low touch low cost a customer acquisition.
Building a customer first mentality is critical to a world class go to market organization.
Jamie Kaiser are cheap customer officer is leading this area to deliver a few more customers employment adoption and expansion experience to every customer enabling them to maximize value from the talent data fabric platform in the first make you gave me the gun. This work to improve the experience for our customers by realigning our customers success.
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And despite promote work and curtailed travel adjustments you know far more than 70% of our club customers go live with their perceive cases and under 60 days.
While we're adults in these conditions will continue over the months ahead, you're pleased with the impact already evident in our Q1 result.
As companies continue to drive digital transformations, the need for a data fabric platform becomes controls how businesses are run.
I believe that fat will only become more pronounced businesses thinks about their own operating plants in the post covered 19 world.
Toxic business leader there were a few things that come up consistently.
Customers are working instrumented businesses with the goal of the neighborly real time exchanges and business prophecy.
I can't air looking to enhance every part of the customer experience with digital touch point.
Initiatives demands the immediate access to trust the data that talented people because of this afford those the opportunity to be at the center of help companies wanting their businesses.
Third here P.A. progressing and our customers are using and valuing data. This is as in it not only in our customers. These cases, but also has become a parent as we are now having discussions elevated in the organization, which focus on top talent can be a search you get business partner not think we'd use case for specific project.
Let me walk you through a few customer stories during the quarter that demonstrated our strategic win and ability to expand relationships with existing customers. These reflects the universal need an appeal a bar completion set attract a wide range of companies from across industries.
Notable new went <unk> liter unsustainable wastes any energy solution, but it's actually 2 billion a year and revenue.
<unk> is aggressively pursuing a cloud data and analytics strategy can maximize the efficiency of its facility and minimize downtime.
<unk> and <unk> the literary continuous flow of trust the data in pits predicted and prescriptive analytics engine.
Their data has become the common language that encourages cooperation across departments for mutual date.
<unk> organizational silos could bond second relying enough data to quickly identified revenue and profit optimization opportunity. After a few short <unk> <unk> see at cost of delivering new value to the business is decreasing and accelerated right.
During the quarter. We also earned the business of Fortune 100 manufacture working with Accenture the customer who go the cloud Datamart in eight of US together member dealers across the country access to real time information such a hard send you a good story in pricing as well as real kind of equipment kind of activity for predicted services.
Maintenance, our ability to connect to a wide range of data sources and deliver high quality data real time or T. for this went.
A large <unk> retail or involved in the automotive industry was another logo when per talented Q1 with thousands of retail locations across the U.S. in Canada. The retailer wanting to sit liver, a seamless customer experience and be better visibility across their entire supply chain.
To achieve these schools the company needed to improve the data pipeline to with cloud datawarehouse competing against I.B.M., how and demonstrated the speed efficiency and expertise to operate successfully in the company feels like environment and help them realize the full potential other club infrastructure.
So keeping the power of our fiction was channel and our ability to expand relationships with password efficiently last quarter. We earned a business from US mid size information services company.
Over a 10 bake sale cycle, the entirety could play Oprah email <unk> customers upgraded from a page you go self service model to an enterprise double subscription plan to give them the volume and predict what costs needed to continue to grow their business.
We also time expansion agreement with the leading provider of credit rating services for global capital markets.
Talented equals the company to still be mounted data it didn't just and improve the data quality. The rating provider has been on call 24, seven respond quickly to market expectations. During the current crisis by integrating political macroeconomic and industry expertise into their analyses to deliver connected view, how good night too.
Oh and Pat over a range of scenario with <unk>. The company can certified package and Monotype, it's trusted data set.
As part of protected to innovate continually to assert our market leadership in the first quarter, we announce the winter release of power and David favour. Our last ship platform. The latest update continues to strengthen our club capability in partnership with new advance support from Microsoft Badger <unk> Web services.
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He's also introduces a new data inventory at that company baited governance program by rapidly detailing what information they have where it's located and who has access to it. In addition, the went to release offers new tool to ensure the quality of data within a company. This includes in in flight data quality feature.
Bad data before <unk> and an automatic trucks for that delivers an immediate health assessment corporate information.
We continue to strengthen our relationship with our ecosystem partner, we reach my expanded our partnership with data breaks to provide reliable quality data from machine learning workload to quickly and like unlocked insight for users business neat you also announced the availability of talent cloud in Microsoft as her marketplace as part of our.
Hurt to reach more customers operating on <unk>.
We believe our continued cooperation with our partners will help elevate or message on the strategic value of data integration and data integrity.
The remainder of 2020, we will stay focused on her strategic initiatives to build a sustainable growth engine enhance our position in the market and prepares for a strong future with a watchful eye on the macro environment legal balance the near term conditions with it broke mindset and keep a relentless focus on the three key objectives, we have already begun to lay the foundation.
Or 81, we will continue to invest in building out our world class failed marketing customer success team with a focus on execution, an alignment in the field and across the organization.
Develop digital capabilities to support the customer life cycle, while evolving our relationship in support of our customers to become strategic business partner.
Optimization of our internal systems will be managed through a centralized dedicated team focused on laying a foundation for high growth.
<unk> across the business.
And finally in the area of innovation and driving leadership in the market, we will focus on helping our customer solve the biggest problem surrounding data and ensuring we play material well and how they use data to make critical business decisions and drive business outcomes.
We will further stand upon our data intelligence capability by exposing quality metrics would transport that allow all users have confidence in their data and bust their decision, making additionally, we look to expand the spectrum of data types that we make available to create more real time contact around critical beta assets.
The data is an active dynamic and ever changing series of events in our role to ensure the entirety of it can be effectively and efficiently leverage fire customers.
<unk> three areas of focus will lay the foundation for long term growth and position talent to capitalize on the market said for the clout.
Now let me tie these comments on our vision for talent and the area of enhancements my earlier comments on the impact of covered 19 on our business.
With every goodness, we are not abusing macro economic impact and we do expect headwinds as a result of Coca 19.
Expecting in pact in demand, but it's consistent with other areas and software and reflect overall budgetary constraints.
We have shifted our demand generation strategy to compensate for the vacuum and lies event increasing our digital make wasn't intentional strategy coming into this year and the current situation as only push the faster and further our businesses well diversified across segments, we just didn't industry.
My 20% of our customer base. It then high impact industries, including travel retail and energy.
This is likely to be where we will see pressure on sales and renew old budgets are tight.
We are closely focus on key leading indicator for performance and will adjust if necessary for the environment at the same time, we will not lose sight of the investments and strategic decisions, we need to make to create long term value for our customers and shareholders are cloud air are skilled and broke seek toward significant progress to date, an underscore the importance of.
These investments.
Our ability to prove value to our customers as they navigate this period will be a testing ground for our strategy I, we will emerge stronger and more efficient as a result, with the clarity admission and focus this establishes in how we operate.
Encouraged by our strong performing P.T., one as well as the piece of demand and when you already we see in Q. too.
I'll conclude thinking our employees customers and partners talent purpose are guiding principle, if the change the way the world makes decisions, we come together as a team with the resolve to deliver on that purpose and the opportunity.
And with that I will turn the call Adam.
Oh go crystals, thanks to our employees for their as all response to cope in 92 and their dedication to our customers and partners.
Walking through our results for the quarter and provide context on the impact of the crisis or outlook.
We're very pleased with our performance into war consistency of execution agility or the sale June and visibility in the pipeline. We're all strong for the entire core.
We're done quickly to the situation, it's all little Bucks to work through one results.
They are all grew to 245.9 doing interviews with Q1 appointed to push you're on your on the culture encourage you basis.
Had a large impact consequential that new or August quarter, the mask or strong performance.
There are groups of 61.1 million compared to 53.9 million if you're looking for a 24.4 million of U.M. Q1, while she was represented 154% you're on your couch in current to grow.
Oh continued club religion was clear <unk>, which included 1.3 more migration bile improvements customers the score.
As of March 31st we don't have more than 2500 cloud customers.
We ended the quarter with 598 customers at 100000 or more or they are 20% you're on your.
She was represents 66% overall <unk>.
The quarter ended March 31st our dollar Bayes net experience you rate was 111% in constant currency.
<unk>, we'll put some pressure on the new old an experiment this year that may affect this metric.
The little revenue for the first quarter with 68.1 going up 18 for sure you're on your in above the higher that are God's range.
Description revenue for the first quarter with six me about 9 million of 22% you're on your or 24% on a concert currency basis.
Professional services revenue with 7.2 million first quarter increase of eight per cent you're on your.
Which stated professional services slowed as clouds sales hadn't quite a load professional services attached compared to on premise too.
We expect this trend to could choose for the year.
It's Crystal mentioned, we felt strong performance in the we're pleased with the continued string today packed and more room.
But we will geographic diversification is a positive.
Depended they compare and recovery will vary across the globe.
Before moving the profit or loss items, I would like to point out that unless otherwise specified all expenses and profitability metrics I will be discussing going forward or non gap results.
Reconciliation between our <unk> can be found in our earnings press release issue today, which is posted on your industrial relations portions of our website.
The first quarter or total gross margin was 79% and subscription gross margin.
87%.
We expect a modest impact of gross margins in 2020 as you can choose scaling a cloud operations.
Special services gross margin was 12% quarter.
We encourage in operating loss recorder, 3.8 million or 6% compared to the operating loss of 9.4 million or 16% and the first quarter of 2092.
This improvement was partly due to the official using a business and partly to lower expenses such as to when you do the code.
Free cash flow for the courtroom was 0.4 million compared to negative 8.4 million in the prior your crew gosh in cash equivalent.
177.8 million as of March 31st 2020.
Let me summarize some of the person takes shape, you know thinking before moving to outlook.
Closely monitoring leading indicators your costs type one generation dual cycles renewals ever suitable to a former forecast.
We did did impact on pipelines or Richard Q1 from Cobras and shit for those strategies fully to digital and bird fool them.
Appears to be back on the light trajectory now from a little a base.
A handful would be as we're back to have you heard of March which we all sat with other short cycle transactions <unk>.
Being conservative on sale cycles, and closes quarter, given the expected budgetary constraints.
We're watching customers and highly impacted industries closely fool renewals <unk> I was mentioned earlier, we did see some pressure overindulge down channels into one for now our forecasts assume you're just looking to the second how come to you.
There was a given marketing costs are efficiency, we had a few requests for flexible putting the terms, but nothing particular significant.
Well managing are hiring and expenses careful years and boundary with situation, we'd do plan to adjust our spending a lot of coat.
Waiting on them into monkey investments.
Shorten your for investment gallstone to market product inoculations, more efficiently scale and enhance our market position.
<unk> increase versus initial expectations.
No more than $5 million for the year.
Outlook for Q2 reflects these assumptions in foreign exchange rate as of April 30th 2020.
The second quarter of 2020 total revenue is expected to be in the range of 65 million to 67.
Assumed the one person had one subscription grow from anthrax and a little over $1 million sequential the calling in professional services.
No one got lost for operations is expected to be in the range of 2 million to nine them.
Don gotten that loss was expected to near the range of 10.6 million to 9.6 million.
Found out that lost per share is expected to be in a range of 34 shows to 31. So.
Based on a basis in diluted whether to other share account of 31.5 million shares.
Two two and two three will account for most of the expected cash burn for the year.
Given the macro uncertainties at this time were withdrawn off all your Twentytwenty God's will continue to provide quarterly guy.
Oh, you when the economic outlook stabilizes.
Do you want to focus on cloudy or are for a moment.
Well there are all his rouge significant scale explosive growth.
We're excited about us trajectory come along scroll and Q1 the option from here.
Well in South qualified also to our initial target for the year with a demand drivers an opportunity remained strong for new customers and expansion.
I do expect cope with will dampen customer demand for migration projects in the new term.
Continue to report <unk> quarter, including the impact them or versions. So you can track our progress.
The current environment underscores the importance of <unk> interest for businesses to gain insight into their operations and make decisions quickly and the components.
We will continue to invest in product innovation to advance our technological leadership or go to market strategies, we continue to deliver the best customer experiences all priorities in line with the objectives Crystal disgust.
<unk> to emerge from the crisis, even stronger as a company with that.
All the questions operator.
Thank you.
Ladies and gentlemen, if you wish soccer crush not this time three signals are pressing star one on your telephone keep up [noise].
Season toward the mute function on your telephone switched off to allow your signal for each other equipment.
Again butter star one to ask a question.
Take a brief post all participants opportunities to signal for question.
Our first question today comes from David Griffin of William Glare.
Oh.
Good afternoon, but you were taking my questions and rather than to solve reforms here Oh. So you mentioned that around 20% of the customer bases and a higher impacted industries, which is helpful.
And if you can just kind of expand on that a little bit and did you just talk about what you're hearing from customers in those industries.
As it pertains to you know, but dental down. So later in the year or you know maybe slick deals or even a you know some signs about you know, it's like the changes or or request for changes in the contractor ends up in the germs and things of that nature.
Mm.
Sure I, David Yeah, Let me go ahead and how to answer a few of those pieces and then I'll get out on the shot it some of the these are things that we're looking at you know what we're seeing right now is they're kind of two two things that are occurring one is the conversations we're having with our conference today.
Okay is that there's a.
Customer that fit into that 80% that really have a reason to want to look at intellicenter business in ways that they've never have to look out before that's causing them to have a conversation with the 20% that you're referring to are really the industries that we're seeing wisely and half is that are are really hitting the pause button would be the best.
The way I would explain it and and either because of other priorities or because of budgetary constraints there taking a moment they'll focus on other thing because of what we're seeing is that we're having a much more <unk> relationship on on that 80% and that's what we're getting super prescriptions, and indeed conversations or have.
And the impact that we can have on those businesses and then on the 20% you know we're seeing that there you know they're thing that we're going to be long. He later on in the future year or hitting the pause button you know for for a period of time that will you know will revert back to so if.
The combination of both of those and I think at this point.
That where we see a very positive flying in in the area of 80%. We're we're having good trajectory and then the where we have a little bit of uncertainty in terms of the timing on the other 20% than Adam I don't know if you have yeah. I'll. Just later on I think the Christmas commentary on on the costs and it's kind of a pause is important.
For US right now I think a lot of companies or just.
I'm going out the situation trying to determine where things go from your and his result projects, we can wait or the decisions that you know what you've got to be made if you're in one of those industries is totally reasonable that you want to take a couple weeks and see how things unfold. The important for you if you're the man environment overall and be underlined.
For good introduction governance doesn't really change.
We're just thinking about it.
It'll be the shift and so we'll keep watching carefully and I think towards the backup keep twos and starting to some you know is typically are ramping into a closes we'll have a better sense for how impact and those custom was really are.
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A little bit of it.
At all and I think a lot of our conservatism is mainly just about the level of certain versus.
Clear trends that were already observing or business.
Yeah that's helpful.
And then my second question is around migration activity from hopeful Disclosers. There I was hoping you know where you can talk a little bit more about the nature of the 1.3 million of club migrations and kind of where pipeline of over there came in relative to your expectations.
On the customers that Margaret during the quarter.
Just to get some color on whether you saw on expenses and later and maybe just are actually what the overall conversion rate was like.
Yeah. So so.
So for the for the pool My <unk>, you know a relatively small number but we didn't expect it to do you know <unk> anyways.
So we're pretty pleased with where we're.
But you know as I mentioned in my third comments, we do think that you'll just you'd have an impact or do you haven't done their environment for for those project you know they take time, they take resources and those are precious commodity for any business right now.
Yeah, It doesn't come down to the demands over more there's just a question when our customers can prioritize it.
There was a a decent amount of expansion associated with those deals at 1.3, just to reiterate the way. We described it really reflects just the on print body, which the crowd.
We're not gonna break out exactly how much expansion the rose, but it is a trend that we've seen and you know my collisions we've done.
In terms of your for the color on on what those really comes as though it's a mix. There are some customers that are up for renewal and I think cloud isn't natural kind of evolution or or upgrade path. There's others that have a bigger cloud my version strategy shift visual transformation that was that as part of.
Really is a mix another good religion or last during school, we got really dedicated team was designed to to build the pipeline here to to the pattern matching identify kind of what the motion to me personally.
Perspective, or so that we can that's the wind resources and and just frankly make sure classrooms are successful as it makes a club.
Okay, Great Oh, that's very helpful. That's over me.
Our next question comes from <unk> Lemon show Oh Barclay.
He thinks we're taking my Christian and hope your stay safe and a.
It would start Crystallynn, Adam the Crystal first Christmas for you I'm going to have a follow up for Adam.
When you started to one big <unk> around the seals motion worse to kind of try to engage slightly more strategically each car I've tried to sell more a value like wonder if you've seen from your skills for us and how that take you up that message and and bring that message into the market, obviously I'm aware like recorded.
It's all a little bit different no, but like what have you seen in terms of early signs of people kind of signing up to that kind of near positioning.
Yeah.
Nice to hear from you I'm over time, certainly pleased with the results of the quarter I I think it was she did a really really well in the base of a number of things, but specifically answer. Your question. You know this is an evolution to taking place that will continue to take place over I think inherited this year.
But what I'm hearing that is really masking the need of the market right now is a conversation around donnelley quickly to solving problems, but the elevation of the conversation to other business and constituents within the organization does around health and quality and integrity of the data. So we're we're really.
Seeing things land are specifically around not just how we can facilitate the the data moving but also how we can do that in a way that ensure that is good quality data and the governance of that data and so those conversations I'm starting to you don't really take hold in in the form of.
Only be able to elevate can conversation, but to also be something that I think people value more now than ever wherever for people to look at patterns of data that they they can trust to gain for business and the <unk> required now for people to really consider you know how they're going to operate in the face of uncertainty is.
Comes down to be able to talk to the data and get access to all of it as quickly as possible. So the conversations have started to take place I think in a in a way that and sewing up so not only massive current conditions, but in a way that I think will continue to increase our value with her her are going to interface or customers.
Okay. Thank you and one for Adam like if you think about renewal receivables et cetera like it do you like what are your training there in terms of like is it more the lady or is it more like a slightly you know lower negotiation.
So you have to kind of disliking more flexible and that will impact cash a little bit because you know obviously need to work with their customers like can you can almost double click on that a little bit.
Yeah, having too so <unk> I I didn't mention we didn't do a little bit higher down sell trend you know.
One then we had expected and so we think that that's largely overlapping with some of those highly interactive industries that are customers there that either negotiated a little bit load on the rule or decided to forgo you know a handful of licensing do they had with us.
Partly because we really unpack the customer mature and so I think that those are all count that as long as we can continue to make them successful, we'll expand you know over a long term.
My priority is absolutely maintaining your or base as we think about discussion.
Customers and so we've got some flexibility with our balance sheet to manage plus we'll building terms or payment schedules and to the extent. We can help customers that are that are you feeling a little bit more the pension is environment.
We're able to do that and you know because they'll accrue to to the benefit of a relationship.
Example of of of a company and the travel space that you know came to us requested flexible goings given their own Castillo crunch.
Able to negotiate a two year transaction, but quarterly payments as a perfect example, something that I think is a win win we're we're helping them get through this tough period, but we all several lock in a long term relationship.
Okay. Thank you hold on.
Oh. The next question comes from <unk> of need them.
Well good afternoon <unk> on the results.
Crucial as long as you could talk a little more about the execution around elevating your strategic message you've got a soft and what you got a couple of different variables going on one is just again talking about the strategic value of childhood and you're there variable you took you dress was sort of diverting more towards digital channels. So how do we think about the the net effect.
We used to.
Variables on your business or any or two earlier are there any changes that you see in terms of she'll cycles, you'll so I was just moving through the pipeline any commentary around though.
Yeah, I I'm happy to I think they're the first thing is that looking at holding in Q1 would be a key metrics that I mentioned study I see was was one of the first time, but it's starting to take hold relative to what we would have expected to see some impact on those under other conditions.
As well and when you start to look across the globe and start to see consistency and the performance and the way that we're executing <unk> the ability to balance the the conditions that we base with bringing in a new high he knew rigor as well as.
Elevating the message that that's a lot of it your arms around quite frankly, instead of the ability to do the Porter and the way that we did.
Looks to be a really good indication that the the beginning of of the process is really taking hole against being very early signs and keeps you in as something similar to seeing if I have to agree sorry. So I think the the message resonates because it has an opportunity to not only saw the current problem in front of people today.
Around the necessity of data, but they can trust and it'll continue as when you see the winter release that we were referencing the ability to really look at those tough for them to be able to pick something tangible to people that they have the ability have confidence insists that they're making based on our our ability to.
To to give them kind of the health of their data. If you will when you when you look at how we operate it would just the other people on creating a digital you know motion that's really important she's not only are are a business today, but how will continue to evolve our our business and really making sure that we can find ways of.
Upbringing customers through and supporting them and quite frankly, expanding our relationship with them through the entire how for life cycle in a very you know digital way that allows them to sell for where where needed and also allows us to provide things in a very timely manner in in a way that showed up at her for our customer.
And so the the productivity the efficiencies that we convene within our business has an opportunity personality server conference better or whatever but also running a business more effectively so I see this you as complementary ones. The how we run the business and the other is the you know the message that we haven't value, we bring and both are in.
Early stages of a ball thing, but I'm very pleased with the way that it's showing up especially in light of of the condition.
Oh, that's great really proceedings are you happy to around that and then it's just as a follow up question. Your animals, one or two good maybe taxi to keep your outlook a bit by region. If you could specifically wondering about you know they tax that's historically been your fastest growing region. There was you know perhaps first impacted by the cool.
Teen situation too. So I was wondering if there's any rebound you might be sitting there and other things are opening up or any sort of lessons learned you know geographically, but you could see you on your business.
Yeah. Good question. So I'll just reiterate one thing the Christmas walking through the execution was really strong across the whole glow.
This last quarter, and we were really pleased to see that consistency.
And so I think that that's a really good set up as we go into cute too.
APEC actually did very well into one and was our strongest grocery drum again and started to be a pre birthdays.
We have no higher expectations.
That they maintain that hydro position I wouldn't say that it's particularly tied to an expectation that they're further through recovery this point versus other regions.
I think it's a little too soon to tell if you know.
<unk>, there's really moving back up forgot you know, Singapore, and some other countries and seem a little bit of reverting back from what they thought we could we go so we're going to watch it carefully but.
Let's see the underlying printable from your perspective from God is really the consistency so into one were able to maintain you do.
Right that's actually color.
Mm.
Ladies and gentlemen, Hmm cute snakes question last recession, and also <unk> first quarter 2020 earnings call.
Do you for your participation you may know disconnect.
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