Q2 2020 Brightcove Inc Earnings Call
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Please note this conference is being recorded.
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Good afternoon, and walking a breakout second quarter 2020 earnings call.
I discussed results announced in our press release issued after market close.
I have a collar, Jeff why Brightcove, Chief Executive Officer, and a lot bark breakouts Chief Financial Officer.
During the call, we'll make say much much better maybe considered forward looking.
I made clustered in the safe Harbor provisions of the private Securities Litigation Reform Act and 1990 side.
Our financial guidance for the third fiscal quarter twice warning a full year 2020.
Like the profitability of positive free cash flow architects and execute our go to market growth strategy.
Our ability to expand our leadership position our bodies to maintain upsides customers as wallboard blade in acquiring new customers.
Why don't you paid off in the identify the words, such as we expect we anticipate upcoming or similar indications that future expectations.
These statements reflect our views only as of today and should not be reflected apart.
Our view any subsequent date.
These statements are subject to a variety of western mass or do you have to cause actual results to differ materially from expectations. Accordingly affecting the covered my teams have done mecarbil celebrations <unk> impact on general economic national market conditions.
For a discussion I'm sorry, another important factor if it could affect or actual result.
Please refer to those contained in our most recently filed annual report on form 10-K, and updated by or other actually see violence.
Also during the course of today's call will refer to certain non-GAAP financial measures.
A reconciliation schedule showing GAAP versus non-GAAP results currently available.
Release issued after market close Tonight.
We found on our website at Www Dot Brightcove Dot com.
Turning to the agenda for todays call, Jeff will provide a summary of your financial results.
Not then operations at our review of our strategy.
Well I will first additional details regarding our second quarter 2020 result, as Walter I walk through the third quarter for your twice.
With that want to turn the call over to John.
Thanks, Brian and thanks to all of you for joining us today.
Before I review the quarter and update you on the business I would like to begin by acknowledging the overdue conversation about racial injustice, taking place across the country I have been inspired by the action our employees have taken to make bright coke a better more inclusive company. There's more that we can do and we are committed to listening.
And making real change in our business turning to our second quarter performance I am pleased to tell you that brightcove delivered very strong results on both the top and bottom line.
Our performance was driven by good sales execution around the world the strength of our product portfolio and the increasing lake strategic role of video in the enterprise I'm, particularly proud of every one of write code for their great work to deliver these results in the Mets the global Cobot 19 academic and.
Challenging economic environment, while working from home.
We believe our second quarter results are the strongest indication yet that our strategic plan to deliver breakout.
Certainly profitable growth is working.
It's Rob will detail later, we're confident that we have enough momentum and visibility into our business for the remainder of the year to again provide full year guidance turning to our financial results briefly for the second quarter, we delivered second quarter revenue of 47.9 billion up 1% year over year and well.
The head of our guidance adjusted EBITDA was 4.2 million, which was up significantly from a loss of 130000 in the second quarter of 2019 and exceeded the top end of our guidance by 3.2 million.
From a new sales perspective, we had the best quarter in our history.
Success was broad based including our strongest quarter ever in North America, the best sales quarter in EMEA in years and good demand in both Asia Pacific and in Japan.
We're pleased with the momentum were seeing in both new customer wins, which saw a notable improvement from recent quarter as well as improved performance in selling back into our installed base.
As discussed in recent earnings call the transformation of our sales team under the leadership of our Chief revenue Officer. Rick has said is complete and our team is performing well.
The combination of our strength and regional leadership the great New talent, we have added to our sales team and the comprehensive sales training and certification process. Each rep go through is paying off.
Our strategy to have dedicated teams that focus on strategic accounts, signing new customers and expanding video adoption within our installed base has also been at success.
The result is a more accountable selling process. The gives our rep everything they need to be as successful as possible.
I am thrilled with the progress we've made with our sales organization and believe there in a good position to build upon this momentum going forward.
The success of our sales team is in partnership with our marketing organization.
Just delivering a much improved demand generation program.
The changes in how people work due to cope it has presented us with unique opportunity to reimagine, how we engage with current and prospective customers.
Our team has done an excellent job in quickly identify and engaging those opportunities and if it's driving deeper more strategic discussions.
A great example was the highly successful launch a plate TV.
Built on Brightcove Beacon and brought to market in less than 60 days play TV is the industry's resource for all topics video it's been viewed by thousands in more than 70 countries and customers are using it to make decisions about their video strategy. For example, we had one large global.
Pharmaceutical company that watch 70 different videos on plate TV as part of their diligence process before signing a deal with us in the quarter that type of engagement is unheard of and not something that can be delivered through traditional channels.
Play TV is also a great example for how to bring an OTI T. service life in a short period of time with built in industry best practices.
Another example of our responsiveness to customer needs with the recent launch a bright cope virtual a bad experiences this offering quickly and easily allows customers to deliver high quality virtual or that.
We have made it easier than ever for customers to deliver high quality engaging video content around the world while remaining in control, a branding and user experience and demonstrating real business value to it sponsors.
The final part of our go to market strategy is building out a channel program. Just recently, we announced the expansion of the Brightcove Global partner program.
Opening bright coats portfolio to abroad ecosystem of channel partners developers and agencies, who reach enterprise and media organizations. One of the key new programs is the master license partner, who can for the first time deliver our video technology and solutions I think managed service.
We believe this is an exciting way to make our technology available to a broader set of customers. It puts the full brightcove platform within reach of all sizes clients.
From a product perspective, we're seeing adoption across our product portfolio.
Whether it is providing a compelling OLTP experience, capturing the attention of correct or prospective customers or engaging with that's supporting your employees video is how business gets done today.
We have the world's most scalable and performing platform that can handle all types of use cases from the simple and fast to the large and highly complex for example, virtual and live events are seeing tremendous growth.
While the limitation on physical events due to cope it has been a catalyst for companies to look at virtual at bats forward thinking companies know the future of intense involves a hybrid model.
Difficult events will have to have a virtual experience to reach attendees that are unable to attend in person hybrid in bets increase ROI and expanded reach its no longer and either or it's both companies that seem to vast opportunities ahead with virtual events and there is no going back.
Some of the recent events powered by Brightcove include large customer conferences like surface now knowledge 2020.
Docusign momentum lie and talk death open talk 2020 virtual <unk>.
The and they'd be show express, which has been accessed by over 40000 industry professionals sets launch.
Great example of the unique value a virtual events was freightway lie at home a three day of that with 85 video presentation and 200 commercials viewed by 90000 unique visitors, who watched 250000 video streams session and 5 million minutes uptime.
We're also establishing brightcove as we go to vendor to power live virtual concerts and entertainment events, including the drop kick Murphy's streaming out of Fenway concert joined by Bruce Springsteen, which has had more than 9 million lives and on demand views through June.
The Metropolitan Opera is at home Gala, where more than 750000 viewers watched live performances by more than 40 artists from around the world.
The Tanglewood 2020 online festival, which will continue the Boston Symphony orchestras tradition of light summer classical music concerts that dates back to 1937.
And Willie Nelson 47th annual fourth of July picnic, which was live streamed across multiple web sites and available on Sirius XM will eat Roadhouse channel.
In addition to the strength of our core platform, we're seeing strong interest in the new innovation. We've recently brought to market right Coke Beacon has quickly established itself as the best Oh, P.T. offerings and Brightcove as the leader in this market, we signed a number of deals in the quarter and we're also beginning to see larger deals.
Sizes.
We're seeing a clear shift in the use of video in the enterprise as organizations are now looking for media grade solution for internal communication virtual in live events marketing and sales efforts and training.
Right.
[music] to video Index will show Enterprise video increased by 93% in the second quarter compared to a year ago and 132% for the first half of the year.
One example of this shift is with enterprise organizations, who do to cobot suddenly have a remote and distributed workforce and now want to engage directly with employees and partners through a corporate TV like experience.
Right. So beacon provides this reach in a fast flexible media grade quality experience content is available on a broad set of devices in apps web and smart TV.
Example, we had a large global pharmaceutical customer choose brightcove BK to directly engage with employees and customers demonstrating OTI t. capabilities are relevant across all our core market segments.
Internal communication digital marketing and business continuity are also top five priorities for most enterprises and having purpose built application and packages for these use cases is getting bright coping Paul had a growing number of deals.
Coping gauge campaign and continuum are driving more strategic conversations with customers and are an important part of our product portfolio.
I'd now like to highlight a few of our key customer wins from the quarter.
Masterclass as a virtual education platform for viewers to learn from the world's best known figures and celebrities in music, Phil Collins area Arts photography, and more in early March the company launched on all of the main Oh TT platforms and celebrated its fifth birthday as a company.
Right. So it's part of the backbone of the masterclass subscriber experience powering the video on demand content as well as being an outlet for their recently launched lie sessions.
Tasty trade is the fastest growing financial network in the World Tasty trade currently produces eight hours of live original programming each week day to provide financial information investment strategies and entertainment related to options trading and the stock market deliberate through bright Coke life.
Actually trade signed a multiyear contract with Brightcove this past quarter.
Arthur J. Gallagher and company, the U.S. based global insurance brokerage and risk management services for.
In mid March with the coping pandemic situation developing the company asked its global NPL employee base to work from home.
At this point it also pivoted to video communication to keep employees abreast of company updates as they unfold it to boost morale be updates on company in sales pursuits, and ensure compliance and safety with newly implemented processes.
Security is critical to the company and we are grateful they recognize our ability to securely deliver the though.
The real hip hop network is the first 20, Fourseven hip hop stringing service dedicated to real hip hop lifestyle and culture. The real hip hop network was founded with the quest to preserve real hip hop and elevate every aspect of hip hop culture, They selected Brightcove and Brightcove beacon to re.
Launch it out TT apps on iOS web Android fire Roque, you, an apple devices. They chose us due to the fact that we are the most reliable and scalable solution out there.
I'd like to finish by discussing our expectations for the second half of the year.
We continue to see good growth in the number and quality of inbound inquiries from prospective customers and our installed base, which is a positive side, both market demand and how our investment in demand generation and sales enablement are paying off.
An important area of focus will be a virtual events, which are becoming the new standard for enterprises, we see significant growth in this area and we intend to capitalize on that opportunity going forward.
While we're pleased with our second quarter performance and position heading into the second half of the year. We continue to expect the uncertain economic situation will present, some near term challenges in closing new business.
Overall, I would say the business conditions have improved since April but they are not yet back to normal.
One area, where we have been pleasantly surprised is how customers in certain markets like live sports have fared during the pandemic. Our lives sports customers have performed better than we expected and if show great resilience in finding ways to be successful without its traditional live events.
In terms of renewals, we continue to make progress on building a more predictable renewals process. This includes proactively managing customers. We believe may be a higher risk of churn into the future.
Our focus in the second half is to make further improve it and get retention rates back to at least our historical average.
The second half of the year, we will remain focused on our three priorities, which are guiding our decision, making and leaving to good results first the safety and well being up our employees their families at our customers.
Next protecting the cash flow of the business and finally, maintaining our ability to execute against our long term growth strategy.
We had a very strong cash flow quarter in the second quarter, and we're confident we will generate positive free cash flow for the year.
We're making good progress on driving productivity improvements across the entire business and reallocating existing spending towards higher ROI projects.
That's a video market continues to rapidly and Paul we will continue to make investments and strengthen our existing solutions and identifying new opportunities for brightcove to create more value for our customers.
Before I turn it over to Rob I want to share a change in our executive leadership team.
Charles True Chief product Officer is leaving Brightcove and I'm excited to announce the meet at all and it's been appointed Brightcove Chief product officer. The meet that will drive the next chapter of bright coax product innovation, managing the project product management engineering and operations functions.
The meta has previously advised bright coax global services team and led the successful who Yala integration program.
Prior to her work with Brightcove, the meet up with senior Vice President Chief product Officer at elusive, where she led engineering product management and cloud ops and Dev ops. She was previously he VP product strategy and engineering at Delta.
Prior to that and to me to help several position in product management at J.D.A. I partnered closely with me that in previous roles and know she will bring world class leadership deep market insight at a relentless focus on innovation to bright copes product organization.
Summarize right Coke delivered impressive second quarter results. We believe we are at the early stages of mass adoption of video in the enterprise and that Cove. It is videos evolutionary moment.
The investments, we made to our product and in our go to market teams are paying off.
Positioned brightcove well to be one of the winners in this market. We're focused on building upon our success in the second quarter. So we can deliver the full promise of video to our customers and generate consistent profitable breakout growth to our shareholders overtime.
With that let me turn the call over to Rob to walk you through the numbers Rob.
Thank you, Jeff and good afternoon, everyone I.
I will begin with a detailed review of our second quarter, and then I will finish with our outlook for the third quarter in the full year 2020.
Total revenue in the second quarter was $47.9 million.
This is well above our guidance range due primarily to better than expected bookings early in the quarter.
Breaking revenue down further subscription and support revenue was $45.6 million and professional services revenue was $2.3 million.
So both backlog, which we define as the aggregate amount of committed subscription revenue related to future performance obligations. In the next 12 months was $108.8 million. This represents a 1% year over year increase.
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 our revenue during the quarter.
Let me now turning to the supplemental metrics, we share on a quarterly basis.
Our recurring dollar retention rate in the second quarter was 80.1%, which was below our target range of low to mid nineties.
There were a couple of factors impacting retention rate in the quarter first we had a Japanese customer who acquired a competitive OVC in the market and brought the majority of their traffic in house.
Second as.
As we anniversary the Ooyala transaction there were several legacy customers, who are still letting gotta yells platform that did not renew.
We have now migrated nearly all of do you all installed base and don't anticipate further material impacts to retention rate.
Generating an improved consistent retention rate is a core focus for us and we believe we have the systems and processes in place to be successful.
Our customer count at the end of the second quarter was 3423 Oh.
Some of which 2279 were classified as premium customers.
Looking at our ARPU within our premium customer base.
Annualized revenue for premium customer was $87200, which was up 4% year over year and excludes our entry level pricing for starter customers, which averaged $4400 an annualized revenue.
Looking at our results on a GAAP basis, our gross profit was $28 million operating loss was $1.2 million and loss per share was three cents for the quarter.
Turning to our non-GAAP results, our non-GAAP gross profit in the second quarter was $28.6 million compared to $26.8 million in a year ago period and represented a gross margin of 60%.
Subscription and support revenue represented 95% of our total revenue and generated a 62% gross margin in the quarter compared to a 58% gross margin in the second quarter of 2019.
Non-GAAP income from operations was $3.1 million in second quarter compared to non-GAAP loss from operations of $1.5 million in the second quarter of 29 team.
Adjusted EBITDA was $4.2 million in second quarter compared to a negative $130000 in a year ago period and above the high end of our guidance range for the quarter.
We're pleased with the improvements in profitability, which reflects the impact on our steps to improve productivity and reallocate existing spend towards our growth initiatives.
On a year over year basis, we also benefited from our play user conference being virtual this year.
Non-GAAP net income per share was seven cents based on 40 million weighted average shares outstanding.
This compares to a net loss per share of four cents, a 38 million weighted average shares outstanding in a year ago period.
Turning to the balance sheet in cash flow, we ended the quarter with cash and cash equivalence of $27.8 million.
During the quarter, we repaid $5 billion of the $10 million, we drew down, but our revolving credit facility last quarter.
During the second quarter, we generated $2.9 million and cash flow from operation and free cash flow was $516000. After taking account $2.3 million in capital expenditures and capitalized internal use software.
We're pleased with our cash flow performance in the quarter, which reflects our improved profitability.
I would now like to finish.
By providing an updated outlook for the third quarter and the full year 2020.
As Jeff mentioned, we're pleased with the trends, we're seeing in the business and the level of interest and sales activity in our pipeline.
We believe this is a positive indicator for future growth.
However, we are still facing an uncertain economic environment and the remains a level of uncertainty on the timing of when deals will close.
With that in my based on the strength of our second quarter performance from current trends for the second half of the year, we are comfortable providing both third quarter and full year 2020 guide.
So the third quarter, we are targeting revenue of $46 million to $47 million, including approximately $2.5 million of professional services revenue.
From a profitability perspective, we expect non-GAAP operating income to be a loss of $500000 to breakeven and adjusted EBITDA to be between $800000 at what point $3 million.
Non-GAAP net income per share is expected to be in a range of a loss of one cents a two cents based on 39.6 million weighted average shares outstanding.
For the full year, we're targeting revenue of $186 million to $188 million, including approximately $9.4 million of professional services rather.
Well profitability perspective, we expect non-GAAP operating income of $5.3 million to $6.3 million and adjusted EBITDA to be in between $10 million at $11 million.
Non-GAAP net income per share is expected to be in the range of eight cents to 10 cents based on 40.2 million weighted average shares outstanding.
Our adjusted EBITDA guidance reflects the third consecutive year of annual growth.
For the full year, we're now targeting free cash flow of $1 million to $3 million.
Summarize our second quarter results demonstrated the positive impact on investments in product at our go to market team are having on the business.
Our product leadership, and a dynamic market put spike over in a good position to deliver improved top and bottom line performance overtime.
We remain focused on executing on our strategic plan and continuing to be responsive to customer need they just to rapidly shifting business conditions due to cope.
With that we will now take your questions operator, we're ready to begin queuing it.
And at this time, we will be conducting a question and answer session. If you like to ask your question. Please press star one or any telephone keypad, a confirmation tone will indicate your line is into question Q you make crushed car too if you like to remove your question from the Q, who participates using speaker equipment, it maybe necessary to pick up your hands it before pricing.
Start keys, one moment, please Robbie poll for questions.
Our first question is from Mike matter more from Northland Capital markets. Please proceed with your question.
Great. Thanks, what are not very nice quarter nice to see the execution in the industry tailwind picking up here.
No I just wanted to touch on a one comment you made it said it was the best sales a corridor and the company's history. So just to clarify that's about it was the best bookings quarter in company history is that right.
Hey, Mike. Thanks. This is Jeff, Yes, obviously, we don't.
Hi, Matt on bookings, but you can read into that exactly what you're saying the.
Great traction are very very fast start for the quarter also.
Where we saw a nice uptick in deals getting close literally from the very very beginning of a quarter and a and it didn't let up throughout the quarter also very very.
Healthy pipeline marketing pipeline generation in corridor, and a very very healthy close rate.
Which we believe can be repeated one of the key reasons why we were comfortable reinstating guidance.
Great and then.
So just on the bookings slow as he said you started off the corridor well I guess on did it sort of build throughout the quarter like was June the strongest month as the quarter.
Yes, it what yet it was yep.
Okay great.
And then the other thing I just want to clarify did you say you think you might feel they get back to normal dollar retention rates in the second half there.
That's our intact. We we've spent a lot of time looking at what is up for renewal what the relative health of the of the customer is the nature of the contract a lot of either legacy deals.
That that we're still dealing with and so as we go through that rationale.
We feel pretty good about about how the second half looks but we're not taking anything for granted we're all are with us.
Yeah.
And I guess just last question. It seems like it's you know the demand for your core products is kind of across the board I guess, that's the one question second is the biggest incremental area of demand. These lie that answers that okay.
Yeah, certainly in the last you know 45 days as a core to the live events skyrocketed for all the obvious reasons is that we've shared and that you would expect.
Everyone is trying to figure out how to connect with everyone else and everyone's live events have been canceled.
Fortune 1000 customers spend 1% to 3% of their revenues on a events.
Some are pretty high and heavily regulated industries, where their care restricted in their ability to do traditional marketing and so a live events become very important. So we've certainly seen an uptick in that and and we expect that to continue and as we noted earlier, we think the future is hybrid and as we talked to some of the.
The pure a best companies that are out there because as you can imagine we're in discussions with them. They don't think that we will ever go back to 100% five a bets that the actual ideal model is a hybrid model, where yes, there will be alive, a bad for where you're pushing your brand to your most loyal page.
Fronts.
And but the same time.
The nice thing about a virtual event is it goes on or not you know for example, our play TV.
Replaced our three they live event in May but it continues to live we continue to put up content people continue to jump in and consume and engage so the virtual events.
Can go on and on throughout the year.
Okay, great. Thanks, a lot good luck.
Thanks, Mike.
Our next question is from Steven Frankel from Khalif. Please proceed with your question.
Hi, good afternoon, Jeff and.
Thank you congratulations.
So I wanted to start with the.
Double checking on whether or not you still believe this is a double digit growth business.
Yes, I do absolutely okay.
Okay, and then maybe trying to understand that the bridge to get there.
When we look at the impressive growth in premium ARPU per customer how much of that is coming from new customers coming in at significantly higher.
ARPU on us starting basis versus successfully upselling the installed base as it's rolling over.
Yes, Steve. This is this is Rob we've we've actually got a pretty successful and pretty balanced approach to that so we're able to mine the existing customer rates and land new customers.
Lets can you say, it's coming from both and if you as you hit it and your discussion around the occurring retention rate in the back half of the year.
Are we getting close to the bottom in terms of the premium customers that you landed in the past that you're probably not a strategic vendor force or they're not likely to renew and so we could be close to a.
Time, where the premium customer count starts to level out and maybe grow.
I think that's fair to say you know certainly.
With that kind of sales team that we have now.
And the heightened discipline that we haven't how were screening prospects and turning them into customers. The structure of the deals the pricing of the deals and the nature of the kinds of problems that were solving all of those things. We expect will lead to a sticking to us that starts to approach a traditional.
Fast company.
We also believe that for media companies.
Products like Beacon, our OTI T. solution are naturally much much more sticky then just selling and Ob p. platform and so we feel good about that and then finally, we talked on.
Okay.
We intend to have a robust partner community of both providers and sellers resellers distributors or channels, but also technology partners that that will find it attractive to sell their AD ends.
In two into our platform as we open that up so broadening the apps rapidly.
Allows customers to see greater value for their unique needs.
And that that will help keep the platform in place.
Okay, Great and Rob what were Overages in the quarter.
Overages were about 1.6 million so that they actually in the quarter. They weren't a huge contributor to the beat the beat was actually driven by the at the sales execution and getting those deals done earlier in the quarter.
Well, that's that's a great.
Selling and any commentary on the current quarter in terms of whether that.
Pacing that you saw in the June quarter has continued.
Thus far in the early days the Q3.
Yeah, no we're not going to we're not going to comment on that I know, we did build some conservatism into the model and one good quarter of sales execution, if not a trend.
Two quick orders are all too.
Well [laughter].
[laughter].
[noise] alright, great. Thank you.
Thank you Steve.
And again, if anyone has any questions. You may proceed start wine telephone keypad.
Our next question is from the crowd from B. Riley FBR. Please proceed with your question.
Great. Thanks for taking my questions and congrats on solid execution.
First question just wanted to.
Maybe you could provide a little color on the extent to the momentum in the quarter was.
The promotional program you guys kind of called out on the last call a contributor to some of that closing momentum that you talked about in the quarter or was there conversion of those promotions.
Yes. It was as many of you may not remember we as soon as the crisis hit we announced a free live streaming program for up to 50 hours plus some consulting to help customers stand up and have a good experience.
Those led to some conversions in the some nice business deals for us and in fact, we've got a nice pipeline that came out of that sales team is engaging with that with customers on that.
Got it and then secondly.
Gross margin tick down in the quarter and I think.
Based on some of the commentary last quarter that there was an expectation for an improvement in the second half I guess, what caused the downtick and what are the revised expectations for gross margins the rest of the here.
Yes, so what we size you know we've got a ratable revenue model. So we saw that straight line and we saw an uptick of some of the usage.
<unk> costs that we have running through gross margin. So as we saw kind of video usage explode. We saw some of our costs a run higher than we thought they were going to.
And as we get into the back half of the year as as you know we've got the model, whereas the customer goes over but entitlement. They go into Overdues. So expect that to a right itself a little bit in the back half of the year.
Got it and then last question for me you guys kind of had a proactive approach with certain customers and verticals that were impacted by cobot related shuts shut downs I think sports was included in that or a lot of those measures.
Remediated and I guess is there any still embedded uncertainty around customer credit risk or anything like that in terms of.
Customer bankruptcies or any such thing in the second half.
We're certainly watching it closely.
As I noted, we we're actually quite impressed with the resourcefulness.
The of the sports related live streaming customers. They they scoured the market and they found content to post for example, Australia have picked up on the Korean Baseball League. It turns out there are quite a lot of policies that playing in that league. It's essentially the same time zone.
I've got a lot of traction for them.
India found cricket leagues that we're playing in the Caribbean and they started streaming those to get great success. So.
Yeah, when their backs, we're up against the wall. They got very very resourceful and they found content and people are so hungry for content there watching it. So we don't know what to borrow will bring but but we're in all of the resourcefulness some of our customers.
Got it thanks for taking my questions guys.
Thank you Lake.
We have reached entered a question and answer session and I'll now turn the call over to Jaffray for closing remarks.
Thanks, Shomali and thanks, everyone for joining in this one was a lot of fun. We're excited about the momentum that we're carrying into the second half the year. That's why we were comfortable giving out guidance, we know that our products more than ever our highly relevant as I said recently and in an interview with a with a member of the press this really.
He is an evolutionary moment for video not revolutionary It is natural for people to gravitate to find new and better ways to connect with one another video is a very natural way to do it so that certainly why we see some initial pops from a the cobot crisis. We also see that this is Ben.
Very very sustainable for us and then finally I'm thrilled with a with the dynamics of our sales and marketing team in engaging in winning in the marketplace. Thanks, everyone stay safe and well be talking to you next quarter bye.
This concludes todays conference and you may disconnect. Your lines at this time. Thank you for your participation.