Q1 2021 Bill.com Holdings Inc Earnings Call

Good morning, everyone I know what I'm sorry.

[music].

Good afternoon, and welcome to build Dot com the first quarter of fiscal 2021 earnings conference call.

Joining us today for todays call is bill Dot Com BT Renagel assert and CFO John ready at this time all participants are in a listen only mode. After the speakers presentation, there will be a question and answer session.

A question on that time, you will need to press star one on your telephone keypad. Please.

Please be advised that todays call is being recorded if you require any further assistance. Please press star then zero with that I would now like to turn the call over to John Rettig for introductory remarks John.

Thank you operator, welcome to build Macoms fiscal first quarter 2021 earnings conference call.

You see the earnings press release, a short time ago and furnished a form 8-K to the FCC.

The press release can be found on the Investor Relations section of our website.

With me on the call today is were now lets her chairman CEO and founder of Bill Dot Com.

Before we begin please remember that during the course of this call. We may make forward looking statements about the operations and future results of Dot com that involve many assumptions risks and uncertainties.

If any of these risks or uncertainties develop work in any of the assumptions prove incorrect.

Actual results could differ materially from those expressed or implied by our forward looking statements.

Okay.

And get paid Google Dot com.

We believe that we are operating one of the largest DDB networks in the United States.

Later I'll be talking more about how we are focused on growing and monetizing this network asthma.

During the quarter, we process 28 $8 billion in total payment volume for TPB, an increase of 31% every Q1 of the prior year.

This demonstrates the strong guessing demand for a popcorn and the new panic capabilities. We've added over the last 18 months.

He recently surveyed over 900 dot com customers using a third party firm.

Survey respondents represented a broad spectrum of company sizes industries and product usage.

It's really showcase still dot com strong value proposition with 97% of respondents, noting that bill dot com allows them to operate their businesses remotely.

Vast majority of says that bill Dot com enables them to digitize finish operation describe bill Dot com is essential to their operations.

Does this value proposition that leads or a platform becoming mission critical for customers and are strong customer and revenue retention metrics.

Customers that participated shared direct feedback, noting and I closed.

So dot com enabled us to switch the primarily electronic payments once our office switched to being believing note during the COVID-19 pandemic.

It was easy to learn but I onboard it to my new job at this company and easy to onboard vendors and to do real time sync with accounting software.

The payment process for international contractors, as much easier and more efficient being able to enter the bills equipped auto based on dot com is excellent.

We also are pleased to see that our customers continue to have high levels of satisfaction as reflected in G. Two independent peer to peer review research.

This year the dotcom nude further to the upper right on details grid for small business a T out a nation and took over the number one racing to be the clear theater in the eyes of F&B.

We remain in first place for market presence there.

I was reading this year was 485 on a scale of zero to five in this market Bromberg small business sentiment.

At the end of the day the satisfaction of value, we deliver to our customers can best be illustrated by a customer experience.

Manhattan Soccer five is one of the largest soccer clubs in New York State.

60 teams 1000 players and an annual budget of three and a half million dollars non-profit offers all levels of development competition.

Over the past few seasons, the paperwork from scores the managers and coaches was getting out of hand.

Each year, the auditors requires more detailed proof such as receive check stubs invoices, all of which had to be processed that back daughter, and then filed in the home office of Sam <unk> director of operations.

Dot com and no longer uses paper check.

He didn't think his workload and facilitating faster reimbursement for managers and coaches.

Damn also provided the honors direct access to Bellingham cutting out the time and just as importantly, the cost the audit.

He also transitioned all paper files the digital on our platform.

Noted and I quote.

I called Bill Dot Com by personal assistant I'm also the president of the youth Daugherty. It worked for dotcom I wouldn't have the cycles pursue my passion for developing and mentoring soccer players.

In addition to serving our customers were also focused on extending our ability gray value for more than two and a half million network numbers.

We work hard to temple by the process of getting customers their vendors and their clients to connect and do business, which creates a healthy flywheel effect.

For example, a platform intelligence includes data from suppliers, you're currently in the Bill Dot Com network.

For these suppliers restore pertinent information such as tax I D. You Miss address and other payment preferences.

The one in F&B joined our platform that new customer can instantly pay many vendors who are already in our network without going through the painful and time consuming process of collecting continental financial Bank account details.

Recently, we discussed our effort that increase in the number of card accepting suppliers enabled on a platform, which in turn increases are virtual card TBD.

During Q1, we brought supplier enablement entirely inhouse, employing our own vendor AI and matching logic automate this critical function.

Controlling this process ourselves and and we've improved our ability to identify card accepting suppliers and pay them more quickly.

Our own employees are better equipped than a third party to promote the benefits or a virtual card payments to our customers suppliers.

These efforts we are seeing earliest success, adding the long tail suppliers. So our network.

You believe there's plenty of opportunity ahead as.

As we continue to focus on creating a better user experience for suppliers. We have also been expanding our payment capabilities. So that we can pay vendors faster.

On a prior call.

We were adding faster payment functionality by leveraging the realtime Turner networks from the clearinghouse.

Probably real time payments rail has been used primarily for consumer opinions to date.

We believe that there are interesting applications for being a payment.

According to a recent survey conducted by Mastercard and payments Dot com.

2% of companies stated that they intend to Dodge realtime payments within the next few years.

We also hear from our own customers in network members that enabling realtime payment's been an important use case.

Leveraging the Israel. This past border, we began rolling out a new feature called since then transfer with instant transfer our network doctors can get pay 24, seven and their funds are available immediately.

The currently charge there should be an AD valorem fee for the service.

It's been transfer is currently in pilot mode, and we are pleased with early engagement data.

It's the latest payment innovation demonstrates our continued efforts to deliver value to both sides of our network.

Finally, I'd like to highlight another indicator of includes platform engagement the growing use of our native mobile app.

September the number of Dot com mobile app download almost doubled year on year.

There are a number of active mobile users hit an all time high at the end of the corridor.

Attribute this increase in mobile usage to better promotion of it and the customers desktop experience and be a deep linking to the mobile app and our worst slow related emails.

Looking ahead, we're also expect a higher level of mobile usage by our network members.

Driven by innovations like the instant transfer product mentioned earlier.

<unk>, let me update you on the progress with our go to market initiatives, starting with the status of our newest financial institution partners.

Turning to our partnership was Keybanc.

<unk> became generally available for its business banking customers in October and for the commercial banking customers. This week.

We are very pleased with how quickly we were able to stand up this partnership despite the unexpected challenges presented by COVID-19 from March through September.

With respect her and your relationship with Wells Fargo integration is now fluffy and we began piling our service inside the banks commercial electronic office portal in October.

This means that the top three commercial bank in the country are now leveraging our white label solution.

We are excited about helping them and all of our bank partners better serve their customers.

Finally, we continue to work closely on the design and integration of are fine for them to serve the F&B customers with one of the top three small business bank in the U S.

Forward to being able to announce details of our launch fans here in calendar 2021.

The County channel continues to be a strong part our customer acquisition ecosystem.

Ah relationships with over 5000 accounting firm partners accounted for 51% of our total customers and 46% for total revenue physical twenty-twenty.

Like most snb's that are now working from home Accountants are operating kind of similar setting unable to go to their off.

As a result, we have seen increased interest in our work from anywhere value proposition, particularly from family office and wealth management firms you'll ever some of the same tools that accounting firms is to serve their clients.

Remote work resonates more and more of the count as.

I would like to highlight one of our accounting partners counsel.

150 employees and hunters appliance county, as an outsource provider a back opposite county nature functions for meeting technology and venture backed companies.

County relies on Dubai Con to serve customers, such as Osama bin South bias intercom and Cora the name of Q.

And are there jeanie, you're gonna all commenting on the benefits of using their lifetime I've never met work environment as she stated and I quote.

Southeast clients utilize dot com and they realize the benefits it provides including the flexibility to operate their businesses remote.

Let me turn it over the accounting functions have an entirely paper based client in Seattle at the beginning of the Lockdown for all employees were immediately ordered staying home.

They were very concerned about being able to pay the bills and see their business funny with no interruptions.

We were able to quickly pay for the company that Bill Dot Coms cloud based service overnight.

Without a doubt momentum we have in flight 21 that our platform simplifies business for our customers and their network, making it easier for them to focus on what they do best now.

Now I'll turn the call over to John to review our financials John.

Thanks for day.

Today I will provide a brief overview of our fiscal first quarter 2021 financial results and discuss our outlook for the fiscal second quarter of 2021.

As a quick reminder, today's discussion includes non-GAAP financial measures.

Please refer to the tables in our earnings press release for a reconciliation from non-GAAP to the most directly comparable GAAP financial measure but.

With that background, let me turn to our financial results.

We delivered solid first quarter results with strong year over year growth in total and core revenue as well as strong non-GAAP gross margin.

Total revenue for Q1 was $46.2 million representing growth of 31% over Q1 2020.

Q1 revenue exceeded our expectations as customers continue to expand their use of our platform.

Core revenue, which represents subscription and transaction fees was $43.8 million in Q1 and grew 53% year over year.

To provide additional detail on core revenue Q1 subscription revenue increased to $24.6 million, representing 36% growth from Q1 of 2020.

This growth was driven primarily by the increase in customers on our platform.

We're also starting to see the impact of the anniversary of our fiscal 2020 subscription price increase which was phased in beginning in Q1 2020 and continued through Q3 2012. This.

This will lead to tougher comparisons in year over year subscription revenue growth over the next several quarters.

Transaction revenue increased to $19.2 million in Q1 accelerating to 83% year over year growth in.

Condition channels, where are horizontal go to market approach results and no significant concentration.

In fact, no partner accounted for more than 3% of total revenue in fiscal 2020.

Our net new customer results in Q1, we're influenced by a few factors that undiscussed on our prior call, including the expiration of the 90 day pre subscription promotion and fewer new customers from our account channel because tax season moved from April to July of this year.

We also added viewer quickbooks simple bill pay customers as we began shifting our focus to quickbooks online advanced where we are targeting larger customers with significantly more attractive unit economics.

As I outlined on our last call for the next few quarters, we expect lower quarterly net customer adds before our newest financial institution partnership start to ramp.

With the progress, we're making and improving monetization of our existing customer base through transactions. The net new customer metric will become less meaningful as we scale.

Looking at total payment volume during the quarter, we process 28, 8 billion and TPB on our platform an increase of 31% year over year.

We processed over six 5 million payment transactions during Q1, which was up 16% sequentially. After two quarters of sequential decline.

We believe that this increase in transactions is illustrative of SMB, starting to get back to more normalised business activity compared to the prior quarter.

Moving onto gross margin and are operating results are non-GAAP gross margin for the quarter was 77%. We continue to expect gross margin in the range of 70, 577% in the near term primarily as a result of infrastructure investments, we're making to support our financial institution partners as well as reduced float revenue from the low into.

Train environment.

Turning to a non-GAAP operating expenses.

R&D expense was $15.5 million per quarter or 34% of revenue an increase from 31% of revenue in the first quarter of fiscal 2020.

As I mentioned on our queue for call, we increased our R&D hiring to support product development work related to the new financial institution partnerships that we signed earlier this calendar year.

Sales and marketing expenses were $11.9 million or 26% of revenue in queue on a fiscal 2021, a decrease from 29% of revenue in Q1 of fiscal 2020.

Or spend level or go to market sales and marketing capabilities was consistent with the level of spending queue for.

G&A expenses were 11 $9 million or 26% of revenue compared to 27% of revenue in Q1 of fiscal 2020.

As a reminder, unlike other software companies are G&A expenses reflect our investments and risk management and regulatory compliance, which are a core part of our competitive advantage related to our payment capabilities.

Looking ahead, we expect to see continued investments in this area.

And Q1 or non-GAAP operating loss was three 7 million versus three $5 million in Q1 of last year and are non-GAAP net loss was two 8 million or a loss of four cents per share based on 82 million basic waited shares outstanding.

Because we had a loss on a gap basis are diluted share count was the same as the basic share count for both gap and non-GAAP EPS calculations.

Okay, R&D hiring to support the product development work related to our new financial institution partnerships and continued development of our payment products.

The bank projects involve complex integrations with long lead times, and we will be increasing R&D spend from the prior quarter to fulfill our bank partner's needs.

We will continue our disciplined approach with regards to the sales and marketing investment, we will increase our investment in sales and marketing as opportunities and economics dictate.

On the bottom line, we expect to report a non-GAAP net loss in the range of six eight to five 8 billion and a non-GAAP EPS loss of eight to seven on a per share basis based on a share count of approximately $81.2 million basic weighted average chairs for Q2.

In addition, we expect stock based compensation expenses are approximately $11 million to $12 million in queue to a fiscal 2021 and capital expenditures for our new headquarters and other requirements to be approximately $8 million to $9 million in queue to a fiscal 2021.

In closing on the guidance topic, while we expect near term economic uncertainty to persist were very excited about the long term opportunity and we will continue to invest in innovate to support smbs, while remaining diligent and agile about the need to respond quickly to changes in the macro environment.

Now Renee and I will open up the call for your questions.

Operator.

Well, ladies and gentlemen at this time.

So asking questions. These priced stars followed by one on your telephone keypad again that is star one to asking questions. We will Paul for just a moment to compile the community last day.

Yeah. My first question is from the lineup Brad itself with Bank of America.

Great. Thanks, so much guys. Congratulations at a nice quarter I wanted to ask about the transaction business almost like a nice move it to take right.

That would be calculated and you called out virtual card as an area of strength I wanted to just ask about that at cross border. I know is also ramping I wanted to you know any color you could provide on on those two offerings.

Offerings and how they track during the quarter.

Thanks, Brad good to hear your voice.

What's driving the growth is something that we're happy about we'd have a lot more to do.

When we look at the growth opportunities across international car, there's just lots more work for us to do we're going to keep doing it.

That's great that's great. Thanks for a day and then one more if I may just on the same topic.

On cross border I think you were you were clear last quarter that you see over time, the virtual card business potentially reaching five to 10 per cent of transactions are there any targets or thoughts on where cross border could ramp too over the longer term.

There's two components to the cross border payment right. One is the the dollars that are just flowing through our system. But then the second part is how much of that is going as a local currency and FX and so I think the the guidance that we provided is that we think the transaction percentage on the network on the payment volume somewhere between 10.

20%.

But that we also think and this is the more important driver of the revenue that the long term opportunity is for us to get the FX revenue in the 40% to 50% range now that's the long term I think at the the annual guidance that we gave last quarter was that were right around 25%. So we have plenty of work to do to.

Get there and.

And that's not something we see obviously in the next quarter something that we're going to work towards.

That's great. Thanks, so much for today thank.

Thank you.

Your next question I from the line of notchback linked to Keybanc.

Thank you too.

Good to hear your voice as well.

And there was a very.

<unk> environment to come up with guidance.

I'm just kind of curious as you went through the quarter.

The months I'm, just curious about maybe how so.

<unk>.

<unk> pointed out relative to expectations and any any surprises co out there.

There are a couple of components that obviously drive the business there is new customer acquisition than theirs.

Payment volume that goes across the platform and we did have a good healthy ads in the quarter and and we still think that's part of the carryover from the 10 day, making the immediacy of people, saying and now I've got to operate my business.

Cross.

Either if you will and so.

The new revenue from those customers.

And as impactful so it really is the.

The TPB rebounding that really drove the transaction revenue and so what we saw was that I think would be opening up and unfortunately across the country. We also did see increased cases in the summer, but as the economy opened up we did see people, saying, okay <unk>.

Ambulance package kept me in business during the clothes months and now I can kind of open up and find a way to make it work and so we did CTV rebounded TPB per transaction that is still lower than it was prior to dependent but the overall PPV rebounded and so it was it was good to see and I think on the in the August call.

We had started to see that which is why we mess message that there is resilience there.

But it continued obviously and I would say we feel good about where businesses now, though there is obviously a lot of uncertainty and and now with cases Covid cases at the highest level they've ever been it's it's hard to know what that means going into the winter months.

Okay.

That's good to hear very helpful. I also wanted to ask about.

To transfer product you've been in pilot move for a couple of months. So I know, it's very early but I'm just kind of curious about maybe where you could see that.

Getting into the product portfolio, maybe what some of the use case early use cases that your let's see.

Yeah, our mission is to make it simple to connect and do business and that's why I started the company 14 years ago was to focus on just really eliminating all the hassle that businesses have whether it's tracking their documents to workflow or their payments.

The action across the network and ultimately drive business results because there will be.

Business model attached to some payment since there is an opportunity for us to to.

Take risks and we're going to manage that risk appropriately, but also have a revenue model from it.

Really helpful figured it.

Thank you just.

Your next question is from the line of branch Bray flying that with Pipers handler.

Thank you and good afternoon will stick on the topic of instant transfer one question and one follow up on this.

And we tell them that you're going to get paid in your account next Wednesday, if you'd like to have it today. There is an AD valorem model that we have built in that we're building in and learning about right and so if you look at the other folks that are doing instant payments, whether it's a square or Paypal or venmo. There is typically.

<unk> kind of a risk fee. If you will that goes to the supplier if they want the money now and that's the way we're thinking about it but.

Improving activities that.

Was generally throughout the quarter there is a small bit of.

Nuance to the transactions based on the business days.

Region across our customer base, but lower.

A little bit softer demand at the top of the funnel and so I think thats part of this uncertainty that everybody is having in the economy right now is just understanding.

During our new financial institution partners, we know that those aren't really going to ramp for a few quarters. So there is there are sort of in between now now in there we have.

Slightly lower expectations have been we've had particularly coming out of queue for where we saw a pretty significant.

Pretty significant spike.

Because of the early days of the pandemic and just generally speaking with our strategy for monetization, which is increasingly leaning towards transactions.

It's probably fair to say that just the absolute customer numbers on a quarterly basis, probably become slightly less meaningful.

It's really helpful to online class and I wanted to just ask you.

Margins on operating margins I guess, if I look at the last two quarters there.

Your next question is from the line of some odd some line help with Jefferies.

Hi, This is Nate marrying on for Mike Thanks for taking the questions.

So can you talk a little bit more about bringing your virtual card supplier effort in house.

He actually doing to get these suppliers said apply your virtual card program and how far along are you in these efforts and then can that's ultimately lead you to hitting your your more long term target rijkaard faster.

Hi capabilities and the data that we have with the.

Human touch.

Connecting with the suppliers real time.

Definitely versus someone just buying a piece of the side of the solution. Thanks.

Yeah I think.

Offering the complete package of both a T N E. R does create a different different sales message and we do have a <unk>.

Gardner.

Each acquisition vehicles that we have and I think as we as Tom comes up to speed and ends up.

Coming up with his game plan I think part of that will be an opportunity to say how do we invest more in any of those channels to drive the growth that we want to see so at this point, what we've seen with mid market as it continues to resonate well with customer.

And to invest and in lead growth as well as sales growth and it's.

We feel good about the opportunity there Israel. The complexity is definitely real for businesses without our solution and simplicity that we have across every type of ammo vehicle out there really does resonate with customers.

Okay, great. Thanks, so much for me.

Okay. Thanks, Chris.

Your next question based on the line of can to help you with the economy three parents.

Hi, Renee and John Good afternoon Hope your hope you well thanks for taking my question.

I'm just wondering if you could talk about the virtual card acceptance are you have you seen greater virtual card adoption across certain types of suppliers either by its size or industry.

Or are there certain suppliers, where you're seeing a lower acceptance in terms of that virtual card.

We are.

Would say still.

Learning on that front, if you will write I mean, that's part of the automation and the supplier enablement that we just talked about the teams or that's why we wanted to bring in house because there is.

I guess.

Connective tissue that needs to happen between understanding our data and connecting with suppliers understanding what suppliers, one and we want to be in a position to kind of obviously accelerate the business and deliver delightful experience for both supplier. So at this point, we've not seen anything that would say Oh, we should not talk to the <unk>.

<unk>. So we should talk to these suppliers, we're seeing that suppliers want to get paid as quickly as.

Buys this quarter, where we see that.

Further down the line.

Yes, Hi, Matt we what we saw was you know accounts were obviously busy with the tax deadline in July.

But then they kind of came back and one of things I think we mentioned in the press release was just as you know some accounts actually get involved with wealth management and so we saw some good uptick.

From that part of the business as well so I would say that there was no one channel that kind of came in strong I do think accounts. We the reason I bring out the accountants, because we mentioned that they were going to be a little bit slow in July and they were but then they they came back and had a good quarter overall so.

Lots of good demand across the quarter.

Across all of the channels and nothing specific to kind of call out and it's in on that on the new banks It is kind.

Kind of early right I mean wells Fargo's now in pilot and Keybanc just went live this week.

In GA. So it's I think I think we'll know more obviously in the next quarter to be able to tell you.

Correction about how we're thinking about it.

And then anything on the distribution strategy anything new and Hakan I mean, it seems to me like like partnerships with some of the bank Tech companies like a Q2 are now can be for Fi asset types or dig it seems like your product would fit really well with.

Their corporate customers.

And.

It seems like an yes.

Yes, there is a lot of opportunities on distribution and nothing that we're going to share today, but what I can say is the first and foremost important thing for us to doing that and the company is to focus on the incredible distribution opportunities that we have with wells Fargo Keybanc and and.

The third.

The largest small business bank in the country, we want to talk to some of this makes the country getting that right like that's all new obviously, our existing partner. So I think we have a lot of distribution.

Yes, well to go to and and I am asking the team to focus on that we are obviously talking to plenty of people that nothing that we can share at this point.

And then is there anything last question on the product pipeline I know you talked about supply chain finance at one point, but is there anything.

What I am obviously, you're working on a number of different things I was wondering if you could give us any color.

No.

What's most important.

Besides yet you talked about Tonight.

All right I mean it.

One of the things that I was really excited about in this quarter is that we crossed 100000 customers and that is a significant milestone and it's something that I know, it's an elite group of businesses that serve that many other small businesses and so in our focus and you know this the market is just massive in front of US our focus is how do we get from that one.

The the the.

It really powerful part of the model that we have is that we go in and we do what we say we're going to do with our bank partners and then they have an opportunity to say, let's do more together and Thats, what weve seen in general and something that we're going to keep doing so I can't say that we are going to just do one or the other.

Is that both need to have a.

Great product strategy with a lot of simplicity because this is going into the early majority late majority part of the market and it's just we recognized I understand it's going to be a little bit different than what it was to get here.

And then looking at the overall product portfolio, what you might do well.

Whether that's mimicking what what some some of the competitors in the enterprise are doing for broader set of capabilities with their customers.

But what's what's kind of the mindset between build versus buy.

And kind of what the overall M&A pipeline might look like.

Understanding that.

A little more cash on the balance sheet, because there was not too long ago.

Yes.

And it's not just the cash right one of the reasons that I wanted to go public was to have a currency. In addition to the capital to be able to be opportunistic about how we can extend the platform and we've got a very strong platform that was purpose built from the ground up to serve and automate financial processes for Smbs and.

This process is that we built from the ground up or ATP and they are now there's opportunities to extend that platform and add other things onto the platform and we're we definitely are aware of lots of opportunities. We would say that kind of expense spend management is an area that we think is interesting to think about we would say.

At HR and payroll is an area that could be interesting to think about.

We would say that theres, an opportunity for us to continue to look at working capital efficiency for Smbs and so.

None of that is something that.

There were going to do right now, but when you asked the broad question about how do you think about it I would probably to say right. Now we're we're going to stay focused on how do we extend the platform of 18. They are most closely and go from there.

We have time for one more analyst. Your final question is from the line of Jeff Kent, well with Guggenheim.

Hey, Thanks for taking my question on this result here and thanks for allowing me to join these calls I appreciate it on I just want to touch on a question from earlier and ask you about what you're seeing with your customer base and payment transactions on so.

Now you're at 103000 customers is almost 104000 customers on transactions were 6.5 million lives numbers were ahead of where we were for the quarter. So so you're growing faster.

And transactions are expanding nicely. So I just wanted to ask you if we can drill down a little bit.

On the characteristics of your customer base right now.

<unk> expenses very quickly.

And as you broadening out your own product lineup.

You seeing new customers that are more likely to be users of these newer products like virtual card.

We are cross border.

On the new adds the kind that we'll we'll lean into these higher value products. I guess is one way of asking can you can you just talk a little bit about that.

Because that will help us get a better sense of product you get down call. It 12 to 18 months from now thanks very much.

Thank you thanks, Jeff the on the virtual card business.

Just a little bit of clarity at this point.

We do all the matching and we view route attainment to occur at the supplier that excessive virtual card. So our customers don't have a choice in that matter. We go to the fastest method of payment. So that our customers can know that their vendor supplier has been paid quickly and efficiently and is reconciled so.

On that test.

Customers, that's not something that is.

They're making decision on.

On the on the international payments, we have seen I would say in the Midmarket companies that we that we bring on that international payments can be something that they're interested in and want to make sure that we have a solution for and our our simplicity and in the cleaning us of how we provide that solution is.

Sometimes the reason as to why we acquire the market customers. So all in all.

I would say what we already knew from our business before we entered either business was that the transactions.

Across our platform there were international transactions that businesses were doing that they were going outside of dot com and there were a virtual card transactions.

That were happening that could have half werent doing and so we have.

A real opportunity to kind of enable that.

For our our customers and what we've seen is that thats its not something it ends up being additive when there, especially international payments when they are considering our solution.

I appreciate that and if I could ask you a quick follow up on you have been in this business for a long time and I guess the question is.

To get done from a remote business perspective, and mobile will be continue to be a part of that is stronger part of that.

Okay.

Thank you I just want to say thanks, everyone for joining today's call and we really appreciate your so ongoing support as shareholders and stakeholders in our business. So thank you.

This concludes the deal that comes first quarter fiscal 2021 earnings conference call. Thank you for your participation you may now disconnect.

Yes.

Okay.

[music].

Absolutely.

[noise] [laughter].

Oh no.