Q1 2020 Earnings Call
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Thank you for standing by that's the conference operator.
Welcome to the Brightcove first quarter 2020, <unk> earnings call.
As a reminder, all participants are in listen only mode.
Stretches being recorded.
During the presentation, there will be an opportunity to ask questions.
Trying to question can you give me press Star then one thing or telephone keypad.
We need assistance during the conference call It may signal and upgraded by pressing star Andrew.
I'd now like to turn the conference over to Mr., Brian Daniel. Please go ahead Sir.
Good afternoon, and walk in a bright colors first quarter 2020 earnings call today, who will discuss the results of mass in our press release issued after market close.
On the color just right breaks out Chief Executive Officer, and Rob North break our Chief Financial Officer.
During the call we all makes it much when it's hard to maybe considered forward looking at are made pursuant to the safe Harbor provisions in the private Securities Litigation Reform Act at 1995.
Including statements Whats right for natural gas <unk> second fiscal quarter of 20, Twond. They expect the profitability of positive free cash flow opposition to execute our go to market strategy, our blades or expand our leadership position.
You mentioned, an upsell existing customers as well as our ability to acquire new customers.
Forward looking statements may be identified with the worst as we expect we anticipate upcoming or somewhere in the kitchen of the future expectations.
These statements reflect our views only as of today Snappier.
Our views subsequent date.
These statements are subject to a variety of risks uncertainties would cause actual results could differ materially from expectations.
In the effect of the close to 19 had done much of our business operations as well its impact on general economic and financial market conditions.
For a discussion of material risks and other important factors that can affect our actual results.
For those containers are most recently filed annual report on form 10-K, and it's up in the by or other FCC filings.
Also during the course today, it's called for a certain non-GAAP financial measures.
There's a reconciliation schedule showing GAAP versus non-GAAP results currently available in our press release issued after market close today.
Let me spend on our website at Www Dot Dot com.
In terms of the agenda for todays call, Jeff will provide a summary of your financial results.
And our operations and our view of our strategy, Rob will then finish with additional details regarding our first quarter <unk> results.
Walter I look for the second quarter its 2020.
Let me turn the call over to Josh.
Thanks, Brian and thanks to all of you for joining us today.
The World has changed dramatically since our last earnings call with the unprecedented global health crisis due to the cobot 19 outbreak in a significant deterioration.
Our first priority as a management team health and safety or ways their families and our customers. We quickly moved to enable each of our employees to work from home and have adapted our global sales demand generation and customer support efforts to align with customer needs.
Hi, I'm incredibly proud about every one of bright coke is pulled together.
Challenging circumstances to ensure we continue to help our customers maintain business success.
Today I will update you on our solid performance during the first quarter. The progress we have made on our strategic plan and how we're approaching the remainder of the year given the highly uncertain business environment.
Recent events have demonstrated that video is vital for both enterprises and consumers. We believe the product and platform investments. We've made in recent years combined with our deep domain expertise position brightcove well to benefit from this dynamic overtime.
As a leadership team it is our job to effectively manage through the near term challenges ahead, while remaining focused on the significant long term opportunities we are targeting.
Turning to our financial result briefly for the first quarter.
We delivered first quarter revenue of $46.7 million up 12% year over year, but below our guidance driven by a large customer liquidation, which we will discuss later.
Adjusted EBITDA was $3.7 million, which was up $2.4 million from the first quarter of 2019 and towards the high end of our guidance range.
Excluding the liquidation I just referenced we had a solid first quarter with sales performance and retention inline with our internal targets. We had strong adoption of brightcove products from several leading global enterprises and media organizations, including Merck, New England Sports network.
Dell Inc.
Hi, I'm, particularly pleased with the performance of Brightcove became our new OTI t. offerings that built on its initial success in the fourth quarter.
We are seeing significant interest in bright coke beacon from a wide variety of concept providers and regional broadcasters they need a powerful yet simple way to deliver a compelling O T T experience so they're viewers.
Consumers are looking for a wider array of video content now more than ever before opening up exciting possibilities for content providers. It did not exist even a few years ago.
Brightcove Beacon success demonstrates the significant market opportunity available when we marry our unmatched domain expertise with compelling and easy to use applications.
Right Coke Beacon customer wins from the first quarter include Onex media network and at Kings Army.
Brightcove signed a three year agreement Onex media network and God.
Onex will be acting as a content aggregator for some of the largest broadcasters and telcos and got a.
Using brightcove Beacon the company will be launching five apps across web.
Gross Android Android TV, and Apple TV with live streaming and bought in total five right Coke Beacon apps 10 channels of 24 by seven life and 4000 hours of live events.
Canes Army is a new upscale group fitness studio based out in New York City founded by two former soul cycle Super instructors well trained the likes of beyond say Oprah and David backup launched in January a canes Army offers in studio classes and will offer at home.
Workouts through mobile OTI T.S. using Brightcove Beacon the company will launch new apps. This summer the company selected brightcove for its reliability and scalability as well as bright codes reputation as a Brad with which I canes army wants to be associated.
We're also seeing good interest from digital marketers and solutions that are purpose built for their needs.
They have a growing need to make video and integral part of their marketing campaigns, but lack the tools to do so in an easy.
Mission and measurable matter.
We're continuing to invest in our marketing solutions to make it even easier to utilize video marketing campaigns and make brightcove, an integral part of their digital marketing Tech stack.
In line with our market segments strategy.
We recently introduced Brightcove engage our new purpose built internal communications out and write code continuum and new business continuity suite to support this list communications functions across the enterprise.
These offerings help customers address urgent and timely needs.
Brightcove engage which we released in early April is the third purpose built application we have launched in the past seven months.
Part of the product road map, we outlined last year Brightcove engage is the latest example of the steady progression of new innovation, we have introduced to the market.
Brightcove engage organizations can quickly and easily built branded mobile experiences to securely broadcast companywide live events like town halls, as well as on demand video such as Onboarding tutorials or internal news directly to an employee's mobile device without needing to utilizing.
Sensitive and time consuming developer and I T resources.
Hi, when many companies have their entire workforce working from home and experiencing rapidly changing business conditions being able to keep employs informed engaged has never been more important.
Early examples of how customers are planning to use brightcove engage include Wendy's, which will share a real time updates and crew member appreciation across its more than 200000 global employees.
Feel connection a Japanese base lifestyle and fitness Brad specializes in groups cycling exercise classes with over 40 studios located across the region.
Feel connection will streamline the onboarding of new hires and training of its large team of instructors on how to use the organizations bicycles as well as how to conduct classes.
And Barbary 50 year veteran of the law school experience, helping bar exam Annie's make the leap from lost due to lawyer will use brightcove engaged to provide video based training to losses and the professors to help prepare those students for the bar exam.
We released Brightcove continuum in direct response to market need to use video solutions to adjust how they work in response to cope with 19.
Brightcove continuum is an all in ones suite of video technologies that enables organizations to conduct critical business activity virtually and remains productive when their employees partners and customers are unable to meet face to face.
Right coax strong reputation for scalability reliability, and most importantly security make us a trusted partner for customers that are looking to use video in critical ways to keep their businesses moving forward Brightcove continue offerings serious video technology to help cousin organizations.
Right, which is central to our mission to help our customers and communities stay better conducted through video.
Another problem facing many customers as they adapt to the impact of covert 19 is an increase need for live video as part of their overall communications and engagement objectives.
To support these customers and help them through this difficult time Brightcove is offering 53 hours of H.D. live video for 90 days to support the community and help avoid disruptions to its operations.
Since we launched this livestream offer over 20 organizations upside down.
Organizations like the San Francisco Ballet, and Maricopa County Library, and global companies, including Hubie S and talk desk are able to reach their audiences through the power of live video.
We're also adapting and innovating in our go to market efforts due to the global cope with 19 pandemic entered protect the health and safety of our customers employees and broader community. Our play 2020 of that will not have a physical component in Boston This year.
Instead, we will launch play TV, our new streaming experience filled with less watch content from the world The video.
Play TV is built on Brightcove Beacon and will launch in bad.
It will be available globally at no cost on mobile devices, and the web and there will be a variety of ways to engage with play TV content 24 seven.
You can watch lives speakers or choose videos from a channel programming guide or similar to Netflix pick videos based on your area of interest.
All play TV content will be updated on an ongoing basis and will become a trusted resource for people interested in video to turn to again and again.
We're already seeing a lot of interest in play TV and look forward to bringing exciting video content to viewers across the world.
I'd now like to highlight some important customer wins and renewals from the first quarter.
In the first quarter del had to renewals one for Dell technologies, and one for Dell Inc. a heritage Ooyala customer.
Dell technologies uses brightcove for quarterly town halls conferences and other bets.
<unk> Inc. uses brightcove to deliver product videos out too and support videos with both Dell technologies and dealt a bright coax supports internal and external video needs across the company.
A multiyear brightcove customer Merck is one of the largest pharmaceutical Brad in the world.
Mark uses brightcove video to market its wide range of advancements in products.
Using video marketing suite Enterprise Gallery, and a wholly dedicated account to distributing content in China, Merck sees brightcove as a strategic partner as it continues to expand its use of video.
A new win New England Sports network Knutsen is using brightcove to power its OTI apps.
Then chose brightcove because of our strong reputation in the market and its compelling need to move from a previous vendor.
Our scalability reliability and reputation helped to secure the deal.
Nike uses brightcove video for it if it's external video marketing activities.
In the past quarter Nike renewed its relationship with bright cope with a significant increase in deal size.
This renewal and increase is due to Nike's trust in PREIT codes infrastructure to always be reliable into securely stream external videos.
Our expanded agreement with Nike is a great example of the proactive selling effort we are striving for.
I want to congratulate the sales team on this when it's a great example of the tremendous talent, we have brought to bright go and the positive impact of our new sales strategies.
Looking ahead, our performance in the first quarter and the market reception for our new products are an encouraging validation of our strategy.
We recognize that we now face a much different economy compared to the beginning of the year I.
I would like to outline for you how we're thinking about the remainder of 2020.
I would note. The coven 19 represents an unprecedented challenge for all of US and is changing market dynamics more quickly than we have ever seen.
We have been quick to react to customer market and employee needs and we plan to continue to do so.
This is our view as of now and we will continue to evaluate and adjust as needed if conditions warrant.
From a demand perspective, we're getting mixed signals from the market.
Positively, we're thinking increasing the number of inbound inquiries from prospective enterprise and media customers about what our video offerings can provide to their businesses. We're fortunate to have already completed the buildout enablement training of our sales organization.
I am pleased with how our teams are engaging with these prospects and believe we are set up well to accelerate growth as the high levels of uncertainty in the market again to recede.
In the near term the level of disruption in the market is expected to make it more challenging to close new business and the second quarter and possibly longer.
In addition, some existing media and contents customers are facing significant headwinds in their own businesses as a result of the pandemic or other market conditions and these headwinds may pose some risk to certain renewals.
For example in late March we learned that.
A new OTI t. provider in Asia was going into liquidation.
From a strategy perspective, we have three priorities.
The safety and well being up our employees their families and our customers.
Protecting the cash flow the business.
And maintaining our ability to execute against our long term strategy.
Regarding protecting cash flow, we will experience some natural cost savings due to lower travel and entertainment expenses and lower variable marketing expenses as we move if that's like our annual play conference to a virtual format.
As we discussed last quarter, we are focused on driving productivity improvements across all spending categories.
And that remains true today.
Regarding our ability to execute we will continually evaluate curtain areas of spin and reallocate resources as needed to fund our growth initiatives.
Our focus areas for investment are enhancing the capabilities of our portfolio of purpose built applications.
Identifying new potential opportunities.
Overall I continue to feel good about the opportunities ahead right.
A customer recently shared that the team remoteness of the pandemic brought into focus the power of video and it's vital role in keeping human connections across the organization.
I'm proud of the platform and purpose built applications, we have developed to address the most important video needs in the market.
Combined with its industry, leading innovation and our strong and fully aligned product sales and marketing teams.
Confident we want to navigate the challenging situation and ahead and come out on the other side with an even stronger position to drive breakout growth.
I'm proud of the Brightcove team and their clear focus on supporting our customers and making them successful in this difficult time.
With that let me turn the call over to Rob to walk you through the numbers Rob.
Thank you, Jeff and good afternoon, everyone, Oh, let's start by expressing my sympathy to all those impacted by the coven 19 crisis and extending my thanks to all of the frontline workers, who are helping the world deal with this crisis.
I will begin with a detailed review of our first quarter walk through our short term response to the current situation and then I will finish with our outlook for the second quarter of 2020.
As Jeff mentioned in late March we learned that book, our largest customer had gone into liquidation.
The loss of hook reduce both our revenue and adjusted EBITDA by $1.2 million in the quarter. In addition, the customer loss had a meaningful impact our 12 month backlog and our recurring dollar retention rate.
Total revenue in the first quarter was $46.7 million, which is below our guidance range.
We were tracking slightly above the high end of our range through late March prior to learning of books insolvency.
Breaking revenue down further subscription and support revenue was $44.7 million and professional services revenue was $2 million.
12 month backlog, which we define as the aggregate amount of committed subscription revenue related to future performance obligations in the next 12 months was $100.5 million.
This represents a 9% year over year increase 4% of which was organic growth.
Adjusting for the $3.9 million existing backlog related that book that was written down during the quarter backlog grew 13%.
On a geographic basis, we generated 54% of our revenue in North America during the quarter and 46% International.
Breaking down international revenue, a little more Europe generated 18% of our revenue in Japan in Asia Pacific generated 28% of revenue during the quarter.
Let me know turned to the supplemental supplemental metrics, we share on a quarterly basis.
Our recurring dollar retention rate in the first quarter was 88%, which was below our target range of low to mid nineties.
Excluding the impact of hook recurring dollar retention rate was 95%.
Our focus on customer success, and improving our retention processes are having a positive impact on our business.
But customer count at the end of the first quarter was 3498.
Both of which 2293 were classified as premium customers.
Looking at our ARPU within our premium customer base, our annualized revenue for premium customer was $84600, which was up 9% year over year and excludes our entry level pricing for starter customers, which averaged $4500 in annualized revenue.
Looking at our results on a GAAP basis, our gross profit was $28 million operating loss was $7.1 million loss per share was 20 cents for the quarter.
Turning to our non-GAAP results, our non-GAAP gross profit in the quarter was $28.8 million compared to $25.5 million in the year ago period and represented a gross margin of 62%.
Subscription and support revenue represented approximately 96% of our total revenue and generated a 64% gross margin in the quarter compared to a 65% gross margin in the first quarter 2019.
Non-GAAP income from operations was $2.3 million in the first quarter compared to non-GAAP income from operations of $19000 into first quarter of 29 team.
Adjusted EBITDA was $3.7 million in the first quarter compared to $1.3 million in the year ago period and at the high end of our guidance range for the quarter.
Without the impact of book, we would have beaten the top end of our guidance range significantly.
Our profitability performance reflects the positive impact our focus on driving productivity improvements throughout the company.
Non-GAAP net income per share was four cents based on 39.4 million weighted average shares outstanding.
This compares to a net loss per share of one cents.
36.7 million weighted average shares outstanding in the year ago period.
Turning to the balance sheet and cash flow, we ended the quarter with cash and cash equivalents.
$32.1 million.
During the quarter, we drew down $10 million from our existing $30 million revolving credit facility.
While we are adequately capitalized we believed it was prudent to play some additional liquidity on our balance sheet given the uncertain economic situation.
During the first quarter, we generated $2.4 billion and cash flow from operations and free cash flow was negative $300000 after taking into account $2.7 million and capital expenditures and capitalized internal use software.
As Jeff mentioned, we have to be priorities for the company as we navigate that covert 19 crisis.
Safety and well being of our employees their families that our customers.
Protecting their cash flow the business and maintaining our ability to execute against our long term growth strategy.
With those priorities in mind, we took several immediate actions this quarter.
Actions included.
Moving to a fully remote work from home workforce in mid March as a crisis accelerated around the world.
Emanating all travel in the short term it all non essential travel for the remainder of the year.
Implementing a substantial pause in hiring until we have better visibility into long term impacts of the current crashes and freezing salaries across the organization for the remainder of the year.
We believe that these actions put us in position to continue to execute on our longer term strategy, while protecting our employees customers and overall health of the business.
I'd now like to finish by providing a thinking at how we're approaching the rest of 2020, and then finishing with an update to our guidance.
The high level of uncertainty related to the covert 19 pandemic and the associated economic impact will make it more difficult to close new business in the second quarter and potentially longer than expected at the beginning of the yet.
We'll also introduced a level of risk the part of our existing customer base that was not anticipated.
We have a diverse customer portfolio, however, certain segments on the extreme stress given the current market conditions.
These segments include areas such as live sports, we're all sporting events or castle.
Avon OTI T. models, where AD revenue is dropping in viewership and costs are rising.
And those industries directly impacted by the crisis, such as airlines in retail.
Well the near term environment presents challenges I want to reiterate Jeff earlier comments, we're seeing good demand trends from some of our core targeted customer segments, such as protein direct to consumer corporate communications.
We believe this positions us to begin growing faster and the current uncertainty in the market fades.
Since the crisis began we have been stress testing our models and running numerous scenarios varying assumptions.
Given the uncertainty of the duration of the health crisis, and the timing of any economic recovery. There was a wide range of outcomes for the year.
I don't believe there was a realistic way to assign probabilities to any of these assumptions at this time.
As a result, we are withdrawing our expectations for the full year 2020, and will only be guiding for the second quarter.
We will reassess providing a full year outlook on our next earnings call. We're continually evaluating the business and have plans in place to take further actions circumstances warrant.
Be clear in the various scenarios, we read we have sufficient liquidity.
The second quarter, we're targeting revenue of $44.5 million $46 million, including approximately $2.2 million of professional services revenue.
Well, our profitability perspective, we expect non-GAAP operating income to be a loss of $200000 to $1.7 million and adjusted EBITDA, maybe it's meeting loss of $500000 to gain of $1 million.
Non-GAAP net loss per share is expected to be any range of one cents a five cents based on 39.3 million weighted average shares outstanding.
Summarize we made good progress on our strategic initiatives to reach our goals rig up growth and improved profitability. We are responding to the unprecedented challenges posed by coven 19, with a strategic approach that protects our employees customers and the business. We are focused on executing against our plan and are confident of our ability to work through the.
And drive faster growth in the future.
That will now take your questions operator, we're ready to begin QNX.
<unk>.
Certainly sir.
We will now begin the question answer session.
And the question can you give me press Star then one on your telephone keypad.
You will hear its own acknowledging or requests.
Using a speakerphone please pick up your had 75% many key.
Let me try your question. Please press Star then too.
No pause for a moment this college starting in Q.
Your first question comes from the crowd B. Riley FBR. Please go ahead.
Great. Thanks for taking my question.
And appreciate all the detail all things considered with this macro backdrop one of the started out first a quick housekeeping question as it relates to overall usage could you maybe just comment on overages in the quarter.
Yeah sure. Thanks lead Overages in the quarter were about $2 million.
The little bit higher than the original forecast of 1.6 going into the a guide for the rest of the year, we brought those back down to 1.6 for the quarter.
Got it up and then as it relates to your second quarter guidance.
Would you anticipate overages to remain elevated and then second part of the quarterly guidance.
Is there any assumption for potential bankruptcies or liquidations similar to what you saw with Herc in Q1.
Yeah, so uptick take both of those in terms of the guidance for the quarter, what we put back into the guidance is that $1.6 million for the overage number but down from the two quarter over quarter.
We're certainly seeing usage increase given the overall crisis, but I want to be a little conservative there as it depends on where customers are in the contracts and given the overall macro environment I don't want to get out of rescues.
In terms of the second question I think we're addressing that through widening the range a little bit.
To give us a little bit more downside protection, if there are any economic.
Trends that continue.
Got it and then.
You know a few puts and takes obviously.
Hook being one of them, but also some.
Positive with customer engagement, you started kind of a year really emphasizing double digit bookings growth I'm no at the world has changed but you know is there still confidence that perhaps absent the near term headwinds are hooked as well as some uncertainty around renewal.
Well that perhaps you could see that double digit bookings growth in the second half again.
Yes, good point, we obviously, we're not quoting bookings were now tracking to backlog, but.
As we said we feel very good about where the sales team is the sales team really came together we've got the rights sales leaders around the world. We've got the right people in place the training the discipline metrics. They all came together and we saw that in the first quarter you can't control the Mark.
But we feel very very good about the things that we can't control going into this year.
Got it and then last question for me, obviously Youve debuted multiple significant product launches as it relates to the rest of the year in terms of product pipeline are there any other products on tap or at least in the pipeline to law.
Before year end or it's just focus what you've kind of release since last September.
At this point in time, we feel pretty good about what we've done it we yeah. We've put a lot of innovation out there more than than we have for many many years and we think that we've addressed all the sweet spots as a target markets in doing this now it's up to us to to execute its up to marketing to bill.
All the strong pipeline and get the word out it's up to sales to close those deals will continue to do a lot of process enhancements will continue to focus on making sure. Our platform is the most reliable in most secure in the world. We feel like we have really everything we need right now to position our.
Celtra breakout growth this year feel very good about that.
Got it I'll get back into queue. Thank you for taking my questions guys.
Thank you thanks.
The next question comes from Steven Frankel of Dougherty. Please go ahead.
Good afternoon, Chesapeake just a follow up on the sales productivity. A question you know throughout 2019, you seem to have a an issue with <unk> renewals and are you, saying now that.
Excellent.
The basic mechanics of making sure accounts get renewal than any drive upside.
<unk>.
That piece of the business you feel is in the right place now.
And we feel good about where we are we can't control a customers in solvency of course, and we're grateful dead as we look at the portfolio. We really don't have any big customers that are having significant if they weren't a fail or leave have a a significant impact.
On on the business. So we feel good about that that diversity.
Customers that we have we also feel good about the salesforce and their ability to go out and acquire business.
And it gets bigger deals on average too. So we again, we feel very very good about the things that we can control more than we have in a long time.
And in terms of the sequential decline in premium customers, how much of that was too low or customers that just decided not to convert to you and went away versus a churn industry additional branco base.
We didn't have much well up yeah go ahead Rob.
[laughter] tend to stay the same thing there wasn't a ton of reality <unk> that came out of that the reality is it is the the lower end customers that were churning off maybe as you can tell from the script that the ASP is our continuing that trend into right direction up sequentially quarter over quarter end up 9% year over year.
Okay, and then Rob Lowe, you've got the microphone.
To address the gross margin declined sequentially you know there was a theory that.
But you got people off the legacy will allow us platform, we see lifting gross margins are.
What's driving that decline in and how do you get gross margins back up again.
Yeah, the reality is quarter core quarter over quarter in particular I didn't talk about this directly in the script, though is that's almost directly related to hook.
We lost about a million dollars. So that 1.2 right out of the subscription topline, but we provided the service for the entire corridor.
[noise], Okay. So that.
That assuming Q2, you don't lose another large customer gross margins look more like they did in the back half of 2090.
That's the intent yes.
Okay.
And Jeff last quarter, you talked about spending an incremental and it was a million and a half dollars potentially create another product it sounds like from your earlier comments that.
He decided not to go forward with that investment at this time.
Well, we like the results. We got this this is a case, where where it can you get the best return in the least amount of time with the least impact on the business and we feel very good about the results that we got from that research. It makes us feel good about the long term future the business for now we want to be opera.
You know, we like the products that are out there for getting good feedback from the market and the right thing for us to do is to take advantage of that immediate opportunity.
But again, that's does set us up well for the longer term to when when we decided to pull the trigger.
Okay, Great. That's all the questions I have for now thank you.
Thank you I see.
Once again, if you have a question. Please press Star then one.
Your next question comes from Mike Latimore Northland Capital markets. Please go ahead.
Yeah. Thanks.
Can you give a little more color on you know maybe what your top 10 customers contributed <unk> percent of revenue.
Customers Huh.
Yeah sure our largest customer is just under 2% a top 10 customers are 14% of revenue.
[noise] trends.
And you.
No that youre.
ARPU is increased nicely year over year.
I'm wondering what are you heard me contributing factors there.
I think it's a number of things I think but we've got.
[laughter] most call we always have to any [laughter], Jeff why don't you take we both want to answer it [laughter]. Yeah go ahead take it Rob and then I'll direct you ended or Rod go ahead Rob.
Great. Thank you [laughter] yeah.
Yeah, Mike just talking about it in his script, we're seeing real productivity improvements from the Salesforce, you've got the Salesforce, where we want their performance to be and they're continuing to go after our existing customers and expanding and going after larger deals from the from the new business.
[noise] I'll expand on that just a little bit.
I'm not just a great robs correct, but.
It wasn't that long ago, when the focus was let's just get the renewal or if a customer reaches out to us and wants to add something let's do it now since the Salesforce is very actively using that opportunity to open doors, if you're interested in this portion.
Introduced us to other parts of the business here are the things that we can do for other parts of the business and that's that's rethink some really really nice rewards and we only started with that lots of opportunities in the enterprises in which we're already present.
[noise] [laughter].
About getting.
A decent amount again.
The set of products I guess.
The new customer pipeline actually higher now or just trying to tend to read that filing it.
That's the pipeline is growing.
Hmm and a lot of it has to do with the work that we did in getting new products out there. That's that's getting some good traction and obviously there is about coming from Koeppen 19 as enterprises in particular I recognize that they've got to find a way to I mean, just fundamentally first survival standpoint maintain business.
Nobody but also there they are witnessing the fact that they can close business they can engage with suppliers and employees.
They can improve the quality of engagement.
With video where that takes us we'll see again as as Rob noted, it's tempered with the fact that we don't we also need our customers to remains healthy and some customers are struggling right now with the with the scope it.
[noise] [laughter] last question.
In terms of.
Customers that are struggling anymore on the media side or enterprise.
Category.
Our.
Our either those categories those start categories weaker.
They would they they look exactly like you would expect it still look like those those companies that have a heavy reliance on Avon.
Seen advertising revenues drop.
At the same time, they're optimistic that when we come out of this is that will pick up again there are certainly.
Seeing impact from that and then very very clearly those are those customers that did live streaming of sports events are struggling right now they feel good about the fact that they're positioned well when this comes back they think that the viewership we'll come back to the vengeance Uh huh.
They can't yeah, they can't make that happened on their own those two probably are the ones that we're working with the most closely.
Okay makes sense.
[laughter].
Thank you.
Thanks, Mike.
Once again the harder question. Please press Star then one.
No no more questions at this time I would now let's go over to Mr., Jeff Lang for closing remarks.
Thank you operator, thanks, everyone for dialing in again it was a it was an incredible amount of momentum and some exciting wins as we went into the quarter. We certainly didn't see cope with 19 coming no one did.
In spite of that are very very solid results and again the things that we can control a we've never felt better about that for now what's most important is to support the safety and health of our employees to make sure that cash flows continue to remain positive and strong anticipate.
Attention to the long term health of the business. We think we struck the right balance we feel very very good about those parts of the business that are in our control and and we are definitely executing at a much much higher rate. Thanks, everyone stay safe stay healthy.
Thank you.
This concludes todays conference call you may disconnect. Your lines. Thank you for participating on the Pleasant day.
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