Q1 2020 Earnings Call
[music].
Welcome to the first quarter 2020 quotient earnings conference call. During the call all participants will be on all listen only mode. After the presentation. We will conduct a question and answer session at that time anyone with a question should lift the phone receiver and press the star followed by the number one.
On your telephone keypad.
To cancel the question please press the pound sign.
If at any time during the conference you need to reach an operator. Please press star followed by zero as a reminder, this conference is being recorded and will be available for replay from the Investor Relations section on the questions website.
Following this call I will now like to turn the call over to Stacie Clements Vice President of Investor Relations. Thank you Ms. Clements you may begin.
Thank you operator, let me right now can try first quarter 2020, our income on the call with me today or the CEO. Stephen goal you can't stay here, Yes, Oh, it's got masking the.
The company stockholder lender has been posted on the IR section of our corporate website investors quotient Dot com alongside our press release earnings presentation, and the interest of timely as summarized supposed to stockholders letter for todays call and well make a jumping in particular.
Before we begin please note that during this call. We look forward looking statements. These forward looking statements include projections for a second quarter and full year 2020, our ability to manage our business your liquidity and you capture marketing dollars during and after the cobot 19 pandemic brands plans to repo caused a delay campaigns later in your question.
Commerce, the important promotions to TPG strain recessionary period.
These plans tricky spending on at this nice effectiveness of our cost control measures and our ability to live again, [laughter] operating expenses as well as the expected growth and investments in our business generally well be looking statements are based on information available to you and the good faith beliefs of management team as a 10 minute call and are subject to known and.
Mm risks and uncertainties that could cause actual performance as a result to differ materially.
Additional information about factors that could potentially impact our financial results can be found in today's press release and then the risk factors identified in our annual report on form 10-K filed with the FCC on much second 20, plenty and our future filings with the FCC, we disclaim any obligation to update information contained in these forward looking statement, whether as a result.
The new information patron or otherwise. Please note that with the exception of revenue operating expenses gross margins and Netlist financial measures discussed today are on non-GAAP basis and have been adjusted to exclude certain expenses a reconciliation between GAAP and non-GAAP measures can be found in the financial results press release issued.
Okay and on this slide posted on the company's website with that I'll now turn call over Steven.
Hello, everyone and welcome to our Q1 2020 earnings call.
Hope that everyone is healthy and staying safe during these most challenging of times.
I want to take a moment to acknowledge the hard work and dedication by so many people first responders healthcare workers delivery drivers food and grocery strata and all other community members that help bring a central needs and services to everyone <unk>.
These prepared remarks will be abbreviated leave more time for Q anyway, and it did pre recorded to avoid any technology interruptions, given we're all working remotely.
I'll start by saying that our number one priority continues to be the safety of our employees customers partners and shoppers.
March 13th our global team has been working remotely under a well established business continuity program and we don't foresee any significant operational impact from working remotely.
I'm incredibly proud of our team their dedication focus and agility has been nothing short of inspiring.
As you've seen from our release in the last few weeks of the quarter brands began delaying or pausing campaigns due to the rapidly changing cobiz 19 situation.
Revenue in the first quarter was $98.8 million and as a result of Cobiz 19 came in below the low end of guidance by 7%.
On the plus side, we delivered $5.1 million of adjusted EBITDA, 60% above the top end of guidance due to a higher proportion of revenue from promotions, coupled with a focus on cost control within the quarter that lowered total operating expenses are.
Our promotions offerings carry a higher gross margin that our media offerings and with the unemployment rate at its highest level in recent memory. We expect promotions to continue to be a focus for shoppers and north TPG and retailer partners for the foreseeable future.
[noise] January and February delivered revenue as expected with impact from covert 19, starting in mid March shoppers began to self isolate to stay healthy.
Many retailers in Cpgs have experienced significantly higher sales over these past weeks shopper Soc pantries cooked more at home and prepared for shelter in place mandates for extended periods of time.
At the same time grocery E commerce, I historically small component of overall sales surged to unprecedented levels, putting in even sharper focus on digital shopper engagement something that quotient is uniquely prepared for.
Supply chains are now starting to stabilize and we believe mid March two early may well have been impacted the most.
Early signs that we've seen the worse are appearing and brands are starting to rebook delayed or pause campaigns for June and into Q3 Oh.
Already bookings for Q3 are higher than historical trends at this point in Q2, and our pipeline is strong.
As I mentioned on our last earnings call, we have a healthy pipeline of new retailers and today, we are excited to announce to more retailer additions.
We have signed 711 entre retailer right, you, adding a new vertical convenient stores or C stores to the quotient network and bringing digital savings directly to shoppers through their seven rewards loyalty program.
711 has been widely recognized as an innovator in digital initiatives 711 is the largest retailers beer sales in the United States and now adult beverage brands can utilize our national alcohol rebate solution to drive sales to millions of 711 shoppers.
And last we ship launched quotient digital paperless coupons across is 90 plus retailer network. This partnership represents our first same day delivery service and marketplace retailer on the quotient retailer network and comes at an unprecedented time went online grocery delivery services has seen significant.
Growth and increased consumer demand.
True retailer Ikea, we now bring the same CPG valued to ship members in 5000 cities through their website an app.
We are excited to welcome both 711 and shipped to the quotient network and with an active pipe.
Line of additional retailers and verticals, we look forward to additional network expansion announcement over.
And then did growth in grocery E commerce, which was already predicted to grow approximately 19% in 2020.
But today's environment will likely push this growth rate, even higher for the foreseeable future.
Quotient is uniquely positioned to benefit from the shift as existing and new retailers build out their ecommerce grocery platforms, incorporating promotions and media informed by data and analytics that quotient provides.
The more shoppers engaged with E commerce grocery to more digital opportunity, we have to connect cpgs retailers and shoppers.
Offline paper coupons are finally, starting to reach their end of life.
The offline freestanding inserts RFS eyes are expected to lose over 20% of their coupon distribution from leading cpgs over the course of 2020 and 2021.
As a result, the value of the other side diminishes, we expect other CPG will follow and a portion of these dollars will shift to digital as the market leader in digital promotions, we expect quotient will benefit from the shift.
Some retailers as a result of Kobe 19 have stopped accepting paper coupons altogether and have directed shoppers to their digital paperless coupon programs. Many grocery delivery services have also stopped accepting paper coupons. We believe these measures will further accelerate the adoption of digital paperless coupons.
It's also important to note that a recessionary period has historically experienced higher coupon usage another tailwind for digital paperless coupons growth.
In 2009, Cpgs distributed more coupon than any year in the preceding three decades and redemption rates increased 27% over 2008.
Lastly, we believe digital will benefit from them.
So the incentive dollars that Cpgs had planned to spend on sponsored events professional sports and specific.
Quotient is ideally positioned to help ship those dollars to working media that drive sales.
We built our business around the large secular shift to digital.
The current environment is accelerating this shift faster than ever as consumers change their shopping behaviors and retailers in CPG rise to meet the challenges of today.
The strategic value quotient provides differentiates us from others and keeps us focused on both the immediate term industry needs and the long term opportunities of tomorrow and with that I'll turn the call over to Pan.
Thank you Steven and good afternoon, everyone I'll keep my remarks, threes and encourage you ought to be before prepared financial results posted on our website for additional detail.
Revenue was 98.8 million below guidance, even mentioned earlier media revenue in Q1 was 40% total revenue and grew 13% year over year effective corporate 19 primary impacted our media business.
Promotions revenue in Q1 was 60% of total revenue and declined 6% year over year, which included expected declines in digital print, 27% and specialty retail up 20% year over year.
On a trailing 12 month basis, our top 20 cohort grew 22 person.
It's not year over year, and all three cohorts together grew 12% year over year.
GAAP gross margin for Q1 was 38.1% includes an increased $1 million in amortization of intangible assets you can now acquisition.
Non-GAAP gross margin in the quarter was 45.1%.
Gross margins benefited from a higher proportion of promotion revenue in the quarter upset by an increase in fixed cost.
Primarily from headcount investments made in anticipation of delivering higher revenue.
As we noted last quarter, we continue to be highly focused on improving gross margins through the year as a step toward improvement we set a goal of 50% non-GAAP gross margin by the end of the year and we're on track with initiatives, we outlined in February to help get there.
GAAP and non-GAAP operating expenses were slightly up year over year, but declined by roughly $2 million quarter over quarter, we continued to manage costs, and that's where appropriate while providing greater efficiencies in the business.
For example, we implemented a more efficient go to market model and revise our.
In addition structure.
We also closed hiring and reduced marketing spend.
Brian as we continue to manage costs into Q2 on lower revenue, which was all cobot monkey.
Cpgs was in spending we feel confident not operating plan to begin hiring is originally intended and to support our long term growth.
In this scenario total operating expenses for the year would be missed.
It's single did.
He adjusted EBITDA expansion for this year will not be as much as we originally anticipated, but we're confident that will give an expansion 2021 as revenue picks that huh.
We delivered $5.1 million of adjusted EBITDA in Q1, 2020 above the top end up the range, primarily due to product mix and lower operating expenses in the quarter.
Looking at cash in the first quarter, we spent approximately $30 million related to the apology earn out we ended the year with cash and cash equivalent to approximately $200 million cashews and operations for the quarter was 8.9 million dollar, but it included 15.4 million somebody over achievement award associated with the oncology acquisition.
Excluding the operating cash flows for Q1 would have been positive 6.5 million.
Turning to guidance as a reminder, equal first we made a change to a portion of our media business, which will impact our revenue growth rate in gross margin going forward revenue from certain media products are now being recognized on a net basis as opposed to grow this change in our media business has no impact to our net income or adjusted EBITDA. However, it does impact our year over year growth rate.
We are adjusting our forecast as a result of cobot 19, we have spent time with our CPG customers in April working with them to plan and we've got some marketing campaign that were affected by the impact of Coca 19.
Well campaigns were delayed or put on hold during April. We're now seeing you were delayed and more stabilization in our bookings.
Marketing plans are starting up again and you campaigns are continuations of existing campaign are generally expected to start up again in June and July.
We believe Q2 will be the marks the second quarter with the back half you're starting to show growth camping and start to getting deployed.
Although we believe we should benefit from the accelerated pace of Cpgs and retailers shift to digital we remain cautious around timing as a result, we are widening our guidance range.
For the full year 2020, we now expect revenues to be in the range of 430 million to 470 million or approximately 3% growth the midpoint for.
For the second quarter 2020, we expect revenue should be in the range of $80 million to $90 million.
Well, there's still some uncertainty about winning business will pick back up again, we believe that used to be revenues will reflect a return to year over your growth.
Adjusted EBITDA for the full year 2020 is expected to be in the range of $40 million to $55 million.
For the second quarter 2020, we expect adjusted EBITDA to be in the range of zero to $3 million.
Given our current levels of investment in the business, we could be cash from negative in Q2. However, the business has leverage and we have cost control measures in place given our current level of investment in the business, we expect to be cash flow breakeven or slightly positive if revenues kind of above 90 million given that we expect people to return to cash flow positive in Q3.
If the impact from coping 19% longer than expected, we would take a hard look at our cost structure and make the changes we would need to preserve cash we remain agile and focus on the balance between cost structure cash preservation and the long term opportunities that we have to grow the business.
In summary, although we have short term impact in our business for 2020, we believe that long term opportunity is greater than it's ever been the current environment is amplifying the need for digital first strategy and we are excited about our growth opportunity given our market leading position.
I'll now turn the call over to the operator for questions.
[noise] certainly as a reminder to ask a question you will need to press star and the number one on your telephone keypad.
Withdraw your question. Please press the pound sign a pause for just a moment to compile the Q and a roster.
Your first question comes from the line of credit catcher area with RBC capital markets. Please go ahead. Your line is open.
Okay. Thank you two questions.
First on getting can you. Please talk about the recent news from I bought on Walmart and.
Oh that changes the landscape if at all and then second is on just the overall AD market. You said a just the advertising environment. He said mid March through May and potentially June will be you will see headwinds, but you're seeing positive a positive sign for Q.
<unk>.
I guess can you talk about how your conversations have trended with the top three CPG.
What they have been over what the conversations have been around and what signed up improvement have you seen from late March to mid April to end of April so far okay. Thank you.
Great Hi try to thank you, it's Steven tall I'll I'll just the first question generally we don't talk about a other folks the industry, but there was some confusion generated by that if you go to visit a I bought as App now there's actually a notice of into this program is powered by I bought up and not affiliated with Walmart grocery I think there with just some confusion in the Mark.
And places like that they got with some sort of a Walmart sponsored a war on it were connected product. So nobody got system of vendor announcement.
On the AD market question.
Yeah. So you know a middle of March or April may.
You know, we certainly felt the effects of out of stock situations.
Cpgs and retailers really just working as hard as they could you make sure they could supply people with a with a necessity that they needed and paused were delayed a lot of the both marketing and promotional activity. I mean, you just to make sense right. If you're a sharper going into a store ordering online there's no reason to promote.
Her product that is either is an out of stock situation or or flying off the shows on its own having said that budgets are budgets and oh by the paused or delayed programs are now being talked about Q3 in Q4, turning them back on so it's a bit of a compressed spring because those budgets will get deployed.
Later on in the year in addition.
Some other events have taken place this year the Olympics got postponed out a year or sporting events, clearly and unfortunately have been put on hold there's a lot of confusion around media spend and so in a year like this and particularly in election year over an awful lot of advertising dollars take over the Airways CPG.
Ladies and CPG is in partnership with retailers are talking and talking with us about how to deploy those dollars into working dollars solar they continue to support shoppers that are going to need support this year unemployment rate high recession clear or may be worse. So that's what we're seeing we're seeing the compression this spring and the release of it.
In Q3 in Q4 those are the conversations we're having with our with our partners now.
Okay. Thank you Stephen if I could add one more please.
One thing what is expected and that from the accounting change in the Q2 guidance.
Hi, it's one of this town I'll answer that question.
So yeah.
You're referring to the change that we made in our media business, where now we are delivering certain media services in a different way that meets to a different accounting answer that I'm not beginning April 1st So in Q2, we're going to be booking that revenue net instead of gross when we did our earnings release in February we estimated that for the year.
It was going to be an impact of about 33 million, we haven't updated that forecast and I'm not will provide an updated forecast today, what I will try and do it provides historical information on it forecasting in this environment.
That level of detail you know one specific product line is challenging so I'm not updating those numbers today.
Okay. Thank you Pam <unk>.
Thanks Rhonda.
Your next question comes from the line of Steven Frankel with Dougherty. Please go ahead. Your line is open.
Hi, good afternoon, Steven and Pan maybe start like clarifying a couple comments in the in the text you supply are you talking about a revenue mix going back to 46, 47% a media are you talking about that for the full year.
Where is that a Q2 comp.
Yeah. So let me let me expand on that a little bit I think the way to think about the product mix going forward.
I put it this way it if we talk we returned when economic situation that that close to what we were like before Cobot 19, then I would expect the product mix to stay around that 46, 47% media revenue that we experience at the end of last.
A year.
I would expect that to just to be relatively consistent between 20.
What we saw in the first quarter with a heavy mix towards promo revenue because the media business with the one that dropped off when or shell, where M.D. and TPG when to pull back on marketing so.
In a highly recessionary environment, we looked back at what happened in 2008, 2009, and it's wrong.
Environment for promotions, so in a recessionary environment I would expect the promotion revenue to be a higher mix and it might you know would be closer to something like what we saw in Q1, which was 60% promo and only 40% media. So it's hard to predict at this point, but I do think that as you know as we run into.
Lost jobs and people concerned about into there'll be more mix towards promo.
Okay, and then one more numbers question before a true you before I Steven's question.
Last quarter, when you gave annual guidance going back to the previous question about this accounting adjustment you you gave us an apples to apples number. So if the current guidance is now plus 3% at the midpoint.
What would that be adjusted for this accounting change.
Yeah that would require that I like that update my forecast for that part of the business.
Which is going to be really challenging to give a forecast for specific part of the business given where we're at I'm just overall in our guidance like we expanded our guidance range to a $40 million range, just because we're not sure where this year turns out so it's going to be too difficult for me to forecast that right.
Now and I'm still not going to update those numbers today.
Okay can't told me for trying and then and Steven could you talk about Oh.
The different opportunities you might have going after the.
C store category and into what excites you about the 711.
Relationship and how long does it take to ramp something like that.
Sure. So since a great. It's a great question I'm I'm I'm getting with excitement if it's such a great channel is so important to many of our CPG.
Clients will give you think about beverage categories adult beverage category snack food. They were really I'm really I'm, an awful lot of opportunity there and 711, just got to has got a very well regarded enlarge loyalty program, they're considered to be real leaders when it comes to digital a lot of.
First from 711, the other first 24 hours a lot of things you know grew out of the 711 a brand. So I'm, particularly excited about adult beverage category 711th largest your seller in the U.S. and so you know you like like we had been reading a lot about alcohol consumption.
During the current or the current environment I will say is public service announcement reputed to weaken the immune system I'll, just say that out loud, but but I'm I'm actually I'm Super excited this is a vertical that I've been interested in for very long time, so and there's more to come it's great.
Okay, and then obviously other plans you had for the year like the the point of sale couponing.
Have been put on hold given the situation.
How about with the E commerce uptick what's going on with your page search.
Oh, Hi, So I look I can't talk about things are on an outdoor I can say is that.
We never had a pipeline this robust we've got engagement with more retailers now at one time than we've ever had before and that includes the beginning days of launching retailer I Q and there is a very heavy a very heavy focus is very sharp focus on E commerce, but not just E commerce as a standalone.
As a standalone channel, it's really how do you agree the experience so that the E commerce experience mirrors that of the physical store experience because when all this is over whenever that is there will want to be a return to some normalcy ecommerce school has established a new baseline for sure. So the that's sort of in.
I mean, the growth of of E. Commerce traditionally has given has been given a real accelerant.
Hi.
It's really about how retailers can synthesize the too so that when a sharper decides to do an ecommerce transaction or an in store transaction were split their shopping or make decisions week by week. They have the same opportunities for discounting and that happens in a product search it happens in lit building it happens in discount discovery also.
So real quick I think you said something about the Pos couponing on hold it it's actually the paper couponing has been put on hold I might I'm sure. That's what you meant but just wanted to be clear digital paperless couponing has not been put on hold is if the if the acceptance of paper couponing that has been put on hold by a bunch of retail.
Yes.
Great, Yes, that's what I was referring to thank you.
Thank you.
Your next question comes from a line of Ralph Schackart with William Blair. Please go ahead. Your line is open.
Good afternoon, Stephen I'll start with you just maybe circling back to your a up a site comments, where blue said industries forecasted declined about 20% in 20 and take the same Britain 2021, just given the unfortunate situation with co that are there any conversations you're down from your industry partners or.
Your customers about up a site, perhaps to clip declining at a faster rate you know given what's going on the current environment and then if so.
Potentially impact the business, perhaps in 2000 and further in 21.
Sure I'll Oh, so we actually you know we projected it over 20% and we're talking declines were telling US we have them you know we have data over 20% of the value in the appetite will be gone 2021.
In some of that will start in 20, so not not 20% each year, but having said that the recent events have actually caused some CPG to take earlier action and so we do know of cases, where.
People have come out to be up if I entirely.
That may not sustain itself for the whole year, but we do know we do know that that has happened and I would expect it that would continue to accelerate from here because again, having dollars allocated to a vehicle that has got longer lead cycles means that when something not accepted in store.
Got you don't really on you know uncertain now whether or not you know the virus will.
Slow down in the summer heat or have a resurgence.
And so having your dollars locked up in the vehicle. It doesn't give you the kind of real time ability to move around is a risk for people and you know the other thing I, probably should have said it earlier, but I've just stated now.
These types of events unprecedented obviously, but happening in the first part of the year gives brands and retailers an opportunity to think about how they reallocate their budgets.
When ER when something like this or something like this would have happened in September October November during back to school Thanksgiving season, you know, there's really no time to think about how to redeploy those budgets and so I think I think that there's some really good thinking going on right now about being stuck in vehicles that may not be available to show.
Offers during the course of the year and how they can move those dollars elsewhere and what we're hearing and actually we put it in our shareholder or stockholder letter sorry. Some quotes from CPG is about moving dollars into working dollars median working dollars and that's exactly the swim lane that we that we were in.
Okay. The coal is helpful. And then maybe one for Pam I believe them during the <unk> prepared remarks that you're really talking about revising up some commission structure. Just curious if you could provide any extra color on that thanks.
Yeah, So what I would say there as you know we've talked in the past about how Scott rafting came into the company and really was focusing on our go to market efficiency and improving all of those processes. We did some key hires in Q4 anyway.
<unk> revenue.
A new manager for customer success.
With this new talent and some other changes.
On the overall efficiency at the go to market model has improved and we've done that by investing more heavily in inside sales and does not have lead customer support teams. We've got a new marketing BP and we're consolidating all of the marketing resources around the company to do more effective approach.
Marketing so all those things are helping us.
I kinda streamline our go to market model and reduce account management that overall produces a mission Bay.
Okay. Thanks to the myself.
Thank you.
Your next question comes from the line of Elliot Alper with D.A. Davidson. Please go ahead. Your line is open.
Great. Thanks, you mentioned, the Q3 bookings are higher than historical trends from booking delays or how should we think about the cadence of your annual guidance and how many different from the past.
Hi, Yeah, so I'm talking about down a little bit.
We have done a lot of work on a you're talking about go to market and part of that is really getting better visibility into pipeline and booking.
You know, we think we've got better visibility into the pipeline today than we have ever before.
And with that we can compare how we're doing relative to quota and plant relative to prior quarter.
And we're seeing a strengthened the pipeline for Q3 that that we wouldn't have seen at this point in time another quarter. So it gives us some confidence about the second half a year.
When we came out with the guidance revenue guidance for the year I would just.
Hey, you know the original.
Revenue guidance for 2020 had a midpoint of about 490.
And if you take a look at where we're after the first half the year between Q1 actuals in Q2 Guy.
We really comes down from what our expectations War.
For 90 number just in the first half were down maybe 30 $35 million, which would bring you down to more or like for 60 midpoint, what could be five midpoint something like that.
We put the top end of the guide for 70, because we do think that's a reasonable possibility that all of these marketing campaigns that were paused or delayed will be restarted again in June July August and will be done on top of existing campaigns and plans to CPG customers have which might result in even a higher how to wear off than we originally forecast.
Thanks.
But the low end to the range accounts for the fact that we just don't know timing and so you know right. Now we think that Q3 is going to be strong quarter, and it's going to be very consistent with what we would have expected pre cobot 19, but it's also possible that this thing drags on and it doesn't come back as fast as we originally anticipated or maybe that's a little bit.
More uncertainty for the longer so.
The bottom into that range accounts for those kind of scenario.
Okay, Great and then off the cpgs rebuilding their pipelines kind of on the other side of cobot, how are they thinking about their marketing campaign contract differently.
You talked about better visibility could they be signing shorter term contracts that could reduce visibility.
Hi, Stephen So no remember we do most of our planning on an annual plan basis lying lining up to the.
Fiscal years of our clients and so they have budget allocated and and then businesses booked you know against that against that a budget that's already been pre allocated so no. It the other thing how I'll just add just to add onto what a would Pam said before that visits business for a long time I stepped away from a little bit and came back.
Our systems for understanding our pipeline understanding our forecast holding holding people accountable have never been better than they are today and so you know as you've seen we've made a lot of changes in management structure. The company since we've been back since I've been back and since got join and.
That really gives us a lot more comfort on how do we look at you know how do we look at how do we forecast, whereas historically, it's been a little bit hard to pin down just wanted to add that.
Okay, great. Thank you both.
Thank you.
[noise] and our last question comes from the line of match and learn with Bank of America. Please go ahead. Your line is open.
Great Hi, guys. Steven you sit up portion of the I suppose I share will go to digital as they lose 20% and that was.
Their distribution.
I'm sure that we'll probably end up being higher given that the death of paper coupons.
But.
Well, we would've rescope, if it's not go into digital wire.
Is there a change in cpgs.
Interest in promotions is the total number of discounted dollars change.
Hi, Matt.
You know a total number of discount dollars really doesn't change very much at all year over year, you see you see a macro things happening like in 2000, a 2008 nine no sorry huge lift in the amount of promotions that were deployed in the redemption rates I went off and that was because the recessionary period.
But you know, we say a portion of it a portion could range anywhere from you know $1.99 right Oh without these year over 100, and so you know I think I think I think that's more of job that's more of a style comment than it is a substance comment. There is are we think a large portion I mean I think.
A large portion would shift to digital provided on a like for like basis promotions move from from analog to digital.
And also did you see any.
At least the change in how people have been shopping.
With the closure of restaurants, and everything else and kind of grocery stores seen items being you quoted and off the shelf did you see anything.
It happened really quickly with house Cpgs reacted to their promotional budget. They spent on your platform, which you know is inflexible and be able to be changed immediately as opposed to you know emphasize what you're talking 60 weeks.
Hi, good talking to you that they would have to make their decisions.
Yeah, Yeah, we certainly did and that's absolutely right like one of the benefits of a platform like ours in particularly our platform because of its because of its integrated nature is that you can make very quick decisions and react to the market and that happens if you want to deploy where you want to Paul you want to pull back and so mid March you know when things really started to get difficult.
<unk> our platform allowed cpgs to save pause that program delayed the launch of that program or pause that program is currently running and we will re launch it or we will launch it or you know when we when we've returned to a situation where we have stock and so that works you know to our favor sometimes and against us.
Sometimes from a you know from a pure economic basis in the long run. Its ultimately this type of environment. This type of platform and capability to give cpgs and retailers that comfort to deploy dollars knowing that they can stop and start them you know as they need to respond ultimately the end of the day numbered number one most important thing is a shopper and it.
As long as you can make decisions quickly on a platform like ours to satisfy the needs of the shopper that's gonna be something that people are interested in.
Great. Thank you guys.
Thank you that.
There are no further questions at this time I will now turn the call back over to management for any closing remarks.
Thank you operator, and thank you all for joining US today as we enter this next phase of change with grocery E commerce coming into its own and Cpgs and retailers working more closely than ever before on their digital first strategies. We believe quotient with the largest crossed retailer network of CPG sales in the U.S. is well positioned for growth.
Thank you again and stay safe everyone.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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