Q3 2020 Agora Inc Earnings Call
[music].
And gentlemen, thank you for student body and the world.
Uh huh.
<unk> Q 2025 minutes or so.
The sign all the participants are made the listen only mode. There will be a presentation followed by a question and answer session at which time if you wish to ask the question. He will lead the presses farm and one on your telephone I must advise you that just kind of range is being recorded.
Without legs and have begun for and so with your speakers and mixed feeling that Chad. Thank you. Please go ahead.
Thank you operator of the in a in a good one and the one of my Name's Fiona I and the Investor Relations director at current interest will join the younger <unk> third quarter 2020 earnings conference call joining.
Joining me today are Tony Jones, founder, Chairman and CEO, and the general Wong CFO or earn interest that press release and a slide deck can be found on our IR website at <unk> and last.
Got her dog the ride the Io Rick.
Reconciliations between our GAAP and the non-GAAP results can be found in our earnings press release.
And of course, we will make forward looking statements about our future financial performance and the other a few treatment and the trends including guidance. These statements are only predictions that are based on what we believe today and actual results may differ materially. These forward looking statements are subject to risks uncertainties assumptions and the other.
Other factors that could affect our financial results and performance of our business as well and just to discuss them and detailed in our filings with the FTC, including todays earnings press release, and the risk factors and the other information contained in the final put back the relating to our initial public offering of.
<unk> assumes no obligation to update any forward looking statements. We may make on today's call with that let me turn it over to Tony.
Thank you got plenty political.
Hello and <unk>.
Yes.
All right. Thank you <unk> and welcome everyone to our call.
This is the first quarter two loans on views of what I read from the cold and suits and <unk>.
God coating nights and gradually fleet all improved late May and early June.
Thank you and resolve the true true called Smart coli non current on with good the good work another quarter and.
And the result with revenue of Golar 31, eight meeting for the broker and increase the bond percentage year over year.
Oh, a member of the adjusted applications reached more than 240 fold and no book and Burke, our the yearly unfold and per month in Q3 of our number of active users reached more than 800.
Oh up maybe 5% year over year.
Also touched on the computer and gone and then all the root harm and.
The new corridor, and both mature Lukas as much of an illness and gaming and merging the group of such an institution and which was not.
The ultimate goal the pullback.
And although put off.
The ecosystem and this quarter the PUC.
Great and how the cooler and called all of our marketing and zone.
Hey, good and.
Amazing there and Oh.
Our economy from the Bush would come from.
With more than the.
And with more than eight problems with the food and the and code of Salt and built the judge.
The the reorder.
100, and we got the current and over 100 come off and all of the award.
We also had all of our garden town and.
With more than 130 of got off to any of the competition.
Moving on from the acquired one of the 35% with sort of already responded.
And quickly of them the lack of going all the startup program.
Where the reserve increase.
Platform route credit.
And the dedicated present goes with the board that.
Oh boy, we constantly the corn sort of an early stage comfortably and the Lucia and absolutely the merger of New places for ARX <unk> oncology.
And our team from the country the discussion will focus not only with the rig.
Only with what the today and how to lose emerging tomorrow, and the looser or in the Lakers RT of completion and build the future of together.
The traditional cost of goods.
The patient is all about the change of leisure.
Great and the current gold Wilkinson Goodman UK, it's required a lot more than the it.
This is about creating a share more.
Please for the call to you and.
In Europe the.
The loser with work of our cars and and prove pillars of route on the bid.
Sure.
In the rock because the energy bill and the because of.
The groups compact.
You are for the war.
More of them to redo and war, but also you could but the core much of the denoting signaling Oh were true you and what's your environment Akamai.
Okay and then.
Oh, the length of the jobs, the albeit conquering them of the Russia was the because of the issue and thought we compute autoclaves, although the we have and partner with leading the growth part of the good Friday.
Now many of the future can be easily you buy the walker of problems and all the problem all kind of make a rural of problem. The.
And we'll go up a flow of developing any real time and given applications.
Sure Hong Kong also depends on having more.
And do the upgrade clearances that relates realize.
That is why we are really in all of our experience level of grid or ex already.
The Echo the girl, we will not let you know that the number of units the already all of premiums quality.
But we will also guarantee all the pro from on the core core networks and the critical and dealer service channel.
During the quarter.
On the audio who is the.
We live with the and transmission that and.
Since its launch we have funds of dozens of well known and during our conference call and ours.
Of course flow.
And immersive experience should be available for any size Oscar.
It's going to affect and cooler of real good.
Interrupting the kind of and scale zinc.
I think the the bar beginning we have the run our platform and could be highly credible for example, recently, we supported and price.
The Krishnan customer and South Asia with more than 50000 come current really user month fully dropped the cost.
Attleboro, we feel real time business should be our of available anywhere and.
I robot and the and App, so that the results to our third pillar we'd be for the full.
For the good to become the data we have the making our technology broadly available and moving to adopt we're coming because of the supporting all popular of crudes and systems browsers and the upcoming remarks.
Reported earlier this year, we add yes negative and the part of the critical release of supported as the current new this quarter. We also released our and really I became booking and RFP and SDK and I would see devices.
Which will release more space for our team Nucleases gross.
As we discussed in the past, we have seen a spare and entrepreneurs who has some good ideas of lock the time resources. The Buda out from scratch. So we want to make it even easier for anyone to create eight there are the past.
For this reason, we launched a GOR accretion application pies and of goodwill RPM and theater.
Although the education the path.
You can create an online education, and precision, which while limiting the coding whether it's one on one classroom small class four and dropped to the large class. It's massive the member of the Moon.
The gross RP App builder book yield of step Florida.
Whether you are seasoned block per or problem and we can now create the product ready and production production of production ready confronted.
With no coding and all the matter of minutes and we can then customize the design and the less with by the presentation of the App metal is based on the unique requirements.
Lots of note the loot.
All of the content and part of the production a quick scope of our success in this quarter, we made steady progresses and enhancing our operational and ours such hub that profit and software gross.
Access the amendment and into and encryption.
Recently, we were awarded three and all sort of because the all information security management system, which quarter of accounts to our rigorous the currency profit and strengthened the cost per pound of girl and.
Now let me turn this over to two more who will review our financial results.
Thank you and home.
Hello, everyone. Let me start by first veering financial results for the kids we.
And then I'll discuss our outlook.
Total revenue grew 81% year over year gross.
Yes, all of those 40.8 minutes and this.
The quarter on income.
Which is mainly due to increased the volume proposal the.
Yes of course.
As of September we had probably.
One of the 400 billion minutes of new commitments per month on average.
And you probably already know the cold imagine the NAMIC has been well contained in China and make money.
Our average most of my activities and grow.
Gradually return to normal.
Are the result from the it really doesn't.
But almost no current.
Cobot and time.
And that means that the division Q3 was still significantly higher than you think you're lucky.
The snacking, increasing penetration of compacts true do kind of engagement and our activity.
And the long terms and conditions.
The huge yep and lack of.
We haven't had was during the steel and heightened levels due to gross our market expansion efforts.
And the prolonged impact of coming out of this.
The ramp on use cases passion and dedication Mercury line and dependent continued gross margin.
Our trading hub non constant currency dollar based net Benjamin one per se.
And then on September.
This number and has been positively impacted by the strength of usage and do the Copenhagen Force.
Fortunately the situation and good luck in China and hopefully.
The other regions as well the knowledge.
And we'll.
We expect our expense will likely come back the level similar to what we saw the company and.
The team and pulmonary.
Now turning to the cost expense and margin.
Please note that users of our products and timing of a hard and marketing initiatives might fluctuate from quarter to quarter, let's call the profitability the fluctuate significantly as well.
Nevertheless, we remain focused on capturing the long term gross opportunities and keep making investments on the nation.
Well my popcorn income items.
I will focus on non-GAAP income, which excludes share based compensation.
Non-GAAP gross margin for the third quarter was 62.5%.
The 6.8% lower and lower than Q3 last week and.
4.1 personal loans and can convert.
The decrease in gross margin were mainly the group international expansion and we didn't hire new cost of true cost per.
Russia.
Welcome to Asia.
American and motion.
Well that makes sense the.
Gross margin was also affected by higher bandwidth and try and.
And well the main Chinese Telecom company leader and nationwide presence of course.
Non-GAAP R&D expenses.
Yes, or no 7.6, and then in terms of maybe.
The percentage year over year and.
And we continue to be the R&D team.
Non-GAAP R&D expenses were relatively flat and 737 point Fivex and look to the in the quarter compared to 77 point discussing interest in last year.
The innovation and critical path items.
The continued enough the Minnesota.
R&D capabilities.
And to further strengthen our technology leadership and pardon what is the occupancy.
Non-GAAP sales and marketing.
Well.
Some of the 5.9 net income.
Of the sponsors in Europe and.
The attributable income.
<unk> expenses and increased and price.
Okay, and marketing expenses represented 90.2 per cent per kilogram in the quarter.
Compared to 25 point, you put him into the Lucky.
With me and with that again, demonstrating the efficiency.
And the ability of us develop of the consumer loans.
Non-GAAP operating expenses.
Well the points moving interest.
One of the simple personal.
Now moving Kim thanks.
Pension and professional services and I think the commission certain management.
Just on the surface and the 2.8% couple of revenue quarter comparison.
Okay and on one business as well.
Non-GAAP operating loss was one point of limited translating grew 4.2% non-GAAP operating loss margin of course.
Good day.
Well north of 1.9 and consumer.
Adjusted EBITDA and net.
One of our sales teams.
And so.
And that is once we put the market impact revenue.
1.1, good market and consumer.
Turning to cash flow.
Operating cash flow of much of the 1.9 million interest.
Compared to the market.
The 4000.
Free cash flow of method 5.1 million compared to net of one point assuming.
Net cash flow in country, mainly because the purpose of.
And medical equipment and.
And on top of the fund through our network.
Moving on the balance sheet.
And this gives me the.
Yes on the six come good simple man in cash cash equivalents per day.
And then I think.
Exactly yes.
Hi, good the 41 million and in the country.
The decrease was because of the metrics the cash flow 5.1 million and payment of loans.
Our professional service fees related to our IPO.
Welcome to the garden.
Moving back and do and compressed and environment.
Okay and model.
Our historical experience and all the time.
Our guidance on price.
The revenue the sacramental assumption and the subject to change based on current net.
And then to the impact of because of my economic.
With that or.
For the full year 2012.
We maintain our previous guidance of total revenue for.
And.
I suspect that moving the range.
Of wasn't coming on line one third of.
Which would present the.
Okay and maybe.
Now the supplements and one of 2% year over year.
In closing we.
Execution performance and because we.
And I'd like the patient.
The Hamilton lump of investment on the recent and of the continuing with the product developer and customer of ours.
Thank you to the entire current and everyone and hope you are healthy and fit.
Most of them up for question.
Thank you so much.
Ladies and gentlemen, we will now begin to question and answer session. As a reminder, if you wish to ask the question.
And the press Star and one on your telephone and wait for your name to be an average if you wish to cancel your request. Please press the hash key again, it's the star in one if you wish to ask the question.
And our first question comes from the line of the young Li from Morgan Stanley.
Hi, Michelle strength.
And for the opportunity to ask questions sort of questions from my side of the first one is the current measurement the update us in terms of the progress of penetrating some of my education customers some of their big cash use cases.
Always the big potential there and the previous and management mentioned that.
Some of the customers doing testing could.
Could you please update us.
The growth of progress.
The the kind of question is the related was competition, we store from a phone the rating movements from your peers the of the aftermarket.
Of our private the capital market. Please the update us. The if you have and is there any of more intensified competition.
One of pitching customers the or a battery.
Entry and customers.
And the third question is related with the gross margin also true.
The.
The more mentioned that there was a ton of telco raise the price or do you see any risk the of the other two were also very for price you future and of which will be the gross margin trend. The if the next few quarters. Thank you.
Okay, and I'll talk about the ER.
Progresses on the UK and especially for the larger classroom there and it's true that we are actively working with customers on the big called Super of small class.
UK says because this is the length of floater in on the helping the either of you know student and teacher experience. The large cost comes from use because of.
The the UK reflect the you know sort of okay.
And I'm going to take a cost base, the hundreds of volume or even tens of thousands of other students. The in one of the same profit.
That the there could be a elite and turn teach them together, but the day.
Their data and the cost moving through May.
Maybe I did turn to fit the minute, we feed and the.
And it will be you know you know of or there would be the.
For small groups of four to six.
And the small dip and the kind of work on and funny and discuss the each other or even like the form of competition the year nor gross.
And the compete on the is going to win and also in the third question.
And then come back to the opera that come back to the large customer and sessions the with the format called and so the.
The efficiency of large profit and in the rapid the of smartphone small hospitals and the like.
The the completion could launch within the small cost and will further enhance the students the attention of broker and.
The the you know comes and the teach the and the due to each of the hope not the cost and section it's going to significantly increase the living the outcome.
And there are several other or the interest expenses or you know.
And like you know the virtual workplace and the also from gaming and social and this case as well and I'll say the onset of Skus and we're also working on some of other interesting use cases as well.
Oh above the competition, it's true that the I think this year, maybe all of these we boast coli to cost again and the of course all of you know and the deals in the public market on the phone there are more of the accomplishments and had the space and.
There are no home on.
On the ratings for the current Oh, no of small companies or our new profit rollout in the space.
And so as we think the you know.
Those are indicate the potential and the opportunities and ARPU of hot industry recognized by more and more people, but you know today and the ice. The current halt early wrote develop and I think also shows the industry of gradually coming into a consists of the with.
This is not the old Oh, sorry.
Oh, no similar to the of our conference or other in the crux of certified to the Compton, rather it's the whole years and upstream focused on the 800 gets the more.
Oh, yeah, and the concept of the timing different it's more and more being adopted the.
Line by all of the industry peers and the.
Got off the old RPC, the happy hour early production and jobs and approved the right.
And the involved with the new calmer and the competition, while the also saying and our Uh huh.
Our when compared to the operation and you know quite clear and the spot, but the unit technical and RP malt lot of and photonics.
While the performance to still to interest and each of these two have different requirements and the in order to support all of you know as I mentioned, our path of space the core of hundreds or thousands of the from new business and the it also requires different forces among the word aspect of.
Of the solution working with our customers we have two of the source of the more than on the how good a use case the was the certain water or the which has been used in the media, but some of it.
Of India the us.
Our bid and the net of the electrics and accelerate for sure and also unique and in the end.
Adjusted for the.
And do our per month share or five we also by far and has the largest of community arts and it's.
Really the titanfall and new apps and just how the him off they.
They support by far the widest range platform and broken and pop up.
Oh the remarks.
Well I'll just ask the question Mark.
So.
As to the health of raising the price range.
And not expect that to happen with the.
Moving to telcos.
Given the.
The one that means the price this quarter.
Question on the has the lowest price of loans.
Yes, I was going to be too.
Mhm pardon GAAP.
And I presume the summit judgment because of the more.
The summer in the spring and help.
So the two nights pain and.
Mhm contained.
As to the general trends on the gross margin.
And I'd.
Right and what the second site gross margin expansion and also.
In the.
The slightly longer.
And I think we can enhance the gross margin so anyway.
And the one soon the only in the nation.
And more generic products and visitors. So that's always the passionately create more value for customers and the.
And the current market and Thats why would the.
The Martin your R&D the heavy.
Secondly, ex the only <unk>.
Great well into the Coke.
Okay, and the chart and some of the twins level of point of difference and.
Well the use cases and near the high Posco commodity eat it and we'll be able to achieve our current gross market.
Huh.
And lastly.
We continue to reduce our standard.
And sort of the cost to enhance my vision and that the you use of the switches.
So we are.
[laughter] loans.
One of the month to month of.
Sales gross margin.
And in the near term.
Because the all the doctors will take time to.
The impact of accounts. So we do expect gross margin to remain on the question.
And I can see.
The client Nikin.
From what we saw the kitchen.
Thank you.
Thank you so much.
Once again, ladies and gentlemen, it cyber and one if you wish to ask the question and our next question comes from the line of Emerson Chen from Bank of America Your line yourself and.
Hi, Thank and Max Smith.
Has the question. My first question is regarding the Althea Upton and King day.
What are the use cases filed the most challenging therapy the results.
The.
And how should we look at logical area of policies in force.
Is it going to the higher let's say you through flow Ventas UK day working for the ensuing baby as of the.
I see.
The.
Secondly.
Our revenue in sales equal, 80% year on year, and we maintain our full year guidance and.
And in Q4 revenue.
Oh, 40%.
So can you give us a little color or the reasons as high as the so.
For and what we have seen so far.
The fourth.
My last question is regarding the core revenue.
I just wasn't get the rough sense of how much of Copel constitute the.
Revenue for Q3.
I suppose the should be coming from overseas market. So how much percentage of revenue to be the overseas. Thank you.
Sure.
I'll take the our view on the first question and.
Actually in general I think our team fit the many tenants and almost all UK.
The upgrade think there are many tenants are in arm in the group here and I was talking about the the fountain and Uh huh.
And the opening remarks like the share count audio support all of the different compared to our and Fiberock and you could start with the you know how to create and also you know and sales are.
No no drop true.
From Bard small one two of our larger and.
And lastly, about the degree I could we need to continue to pour all the tour and per say mark sometimes the offers the not really need on the.
All of those are the most framework of course, but of the ones who have the ability and the availability of the support for that topic of the mid true sales force or outcomes to build the arts and because of the would accompany those of you are the ones that have the most support for almost all of course, we want.
The my potentially use.
And don't know.
They are the are definitely and a hard one.
Because the you know the.
Definitely in the end the board committees and are more no or the net [laughter] transmission and less et cetera, but.
But oh, there's the more even like or no.
Average classroom experience and I was just talking about being a day or tens of thousands of concur concurrence do the and they can break out the you know mid of SAP and.
Two of the you know probably the bulk of small groups.
Groups, and then from a need for like the.
Some of the discussion or competition within the group and come back and the.
Another no seconds and with all the has all Dr. non you know your pro and both ways and all goes on and do have some.
And our talents and.
How the design the technical infrastructure because of how to imagine the student and she.
Teachers could come from all of the war and.
And I'll use different treatment or non devices, the drawing the sessions and but they all of these are two halves of the same high level qualities and shortens.
Okay.
The second question about the revenue guidance.
I would say we are coming up the Justin and.
As of quarter on quarter of note the schools.
As always we want to be the question regarding the markets.
And going well.
The next meeting.
And you're guiding to quickly and accurately.
So the change of pace.
Yes.
Uh huh.
The Q4, so far I will assume the encouraged by what we have seen some countries force and.
No no no.
And that does conclude.
And as to the.
The revenue mix impact from corporate accounts.
Thats hard to sort of.
The se.
And with almost no net impact from Covidien China.
And the outside China.
Contribution out of the China, one of the more than 20% of more.
More than on the kitchen.
Okay and intellectual.
And Uh huh.
And say back on the bottom of of course.
And it's probably I think the majority of the Columbus and was due to.
And Mark expansion.
Oh yeah.
And the smaller the.
And there's no question, there could be because of how come to that and.
Good day.
[noise].
Okay, and you're still here.
Okay and.
The he disconnected his line.
Thank you yes.
Yeah, we'll move onto our next question.
The of from the line of Rich Valera from the Tam. Your line is now open.
Thank you and and thanks for the upturn and you ask the questions here first.
Just wanted to clarify the comments on Q4, I apologize, but the line is.
The difficult the here, but.
The single did you say that you did not expect a quarter over quarter decline in Q4, and just wanted to make sure I understood. What your comments were with respect to the issue for outlook.
Sure.
The Q4 is the only.
On the Hopper soon so its still too early to say, but that's what the.
I wanted to clarify what we're not guiding the Q on Q slowdown.
Okay. That's that's perfect.
[music].
And then you've had a couple of quarters of really strong new customer growth I think probably two of the strongest quarters and.
And your history in Q2, and Q3 and I'm wondering if you can talk about when you expect to see them starting to generate revenue and and maybe if you've seen any.
Early signs of of those added in Q2, starting to generate revenue and just how we should think about those contributing to future revenue growth.
Sure.
In general and new customers will take of three to six months because of the ramp up.
And the Sac and actually saying, yes.
The difference is the Uh huh.
Fluctuation from six to kick loans, it's much much much bigger interconnect.
Many of the patient customer weakens the Kaufman.
January February and we're certainly have very high usage.
Part of me.
The technical difficulty.
The surely.
And given the situation back and they have to.
And had to go with it and whatever.
In Asia. So you have the initially and then.
Channel the Oakland late May early June and music would fall and that's why it's a lot harder to two telecom and.
Net income for the general moving through that Oh, the 20% so the customers and will continue to generate revenue.
And just moving the needle and patent was the.
The heavily discounted.
Understood and and final question for me.
In terms of customer concentration I think last quarter, you didnt actually have any 10% customers, but I believe you had two customers that were 9% of revenue I was wondering if you could comment on.
Who your largest customers this quarter, how big they were and maybe the status of the as to 9% customers from last quarter. Thank you.
Sure.
This quarter, we had one customer slightly of conversion.
And then top Ken Posner with some of these having bridget.
And the 10 doesn't go up and the was the.
One of the key members and customers last quarter.
And the other customer of smaller.
Okay and explain.
Oh the.
Some of the and Cushing and cases, especially for.
The public schools and its now the no from the here.
And if we don't would flow back.
Got it the tree helpful. Thank you for taking the questions.
Thank you so much once again, ladies and gentlemen, if you wish to ask the question. It is star and one on your telephone again, it's starting one if you wish to ask the question.
And ladies and gentlemen.
The starting line if you would like to ask the question.
And there were no further question at this time, it's true you may continue.
Thank you operator and its journey.
If any investors or research analysts have any questions. Please feel free to reach out to us the hour and I.
Our email or any of our IR website, todays and cash and also the presentation is available.
On our IR.
Hi, Aswell and thank you everybody.
Thank you thank you and.
And that does conclude the conference for today. Thank you for participating you may all now disconnect.
[music].
[music].
[music].
The ladies and gentlemen, and thank you for standby and the welcome to <unk> and three.
Three Q 2020, and your financial themselves.
The sign all the participants and I'm gonna listen and I'll be married there will be a presentation followed by a question and answer session at the which time if you wish to ask the question you will need Nebraska, Barbara and one on your telephone and how much of advice for that this country and just being recorded I would have liked to have the conference over to your speakers and this feeling of.
<unk>. Thank you. Please go ahead.
Thank you the operator, the evening and a good one day of the one my name's deal and I I and the master of relation with Doctor at either of them and go for joining of go up there quarter of 2020 earnings Conference call. Joining me today or 20, Joe founder of German and the C E O and the gym go along the C. F O R. R.
And it turns out press of relief and a slight <unk> can be found on our website at in.
And left her doctor had the I O.
Conciliations between hour gap and and non-GAAP results can be found in our earnings press release during.
During the call we won't make forward looking statements about our future of furniture for a woman and the other of your treatment and the trends including items. These statements are only predictions that are based on what we believe today and the actual results may differ materially. These forward looking statements are subject to of it and.
Certainties assumptions and other factors that could affect our furniture the results and performance of our business.
And just to get to discuss them and details and our filings with the S. E C, including today's earnings press release, and the risk factors and the other information contained in the find out the the fact of relating to our initial public offering a.
Go out some no obligation to update and it will will look at the payments wait and they make on today's call with that let me turn it over to Tony.
Thank you got plenty.
Welcome.
Hello.
Yeah.
Alright, Thank you and welcome and you want to all of you call.
This is the first quarter of 220 of Douglas at three.
Three four and the Covid interest you can kinda.
COVID-19, glagolitic read off lately and.
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And you've been resolved the children cause my code and kind of with yoga do work another quarter of an author.
The results.
Revenue dollar 31, big meeting put in for the corner.
And the inquiry, maybe 1% of vehicle you.
All the member of rejected applications reached more than 240000 and though.
September.
Yearly 10000 per month, and two three I'll remember off after the yogurt reached more than 1800.
Of 95 per cent.
All settled China the company Who's gone and then all of the time.
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Thank you to the entire of course.
And everyone and hope you'll housing and fish.
And that's open up the question.
Thank you so much.
Ladies and gentlemen, and you're allowed to get into question and answer session. As a reminder, if you wish to ask the question you will need the past the as far and one on your telephone and wait for your name to be analysis have you wish to cancel the your request for the rest of the Ashby again, it's the star in one if you wish to ask the question.
And the first question comes from the line of the calendar from Oregon Cindy.
And the shelves.
And for the opportunity to ask questions sort of of.
Of questions from my side of the.
First one is the could imagine and the update off and come off the progress of penetrating online education customer come up there the class to use cases.
Oh, we see the potential there and the previous and management of sufficient gotcha.
Some of the customers doing testing could.
Could you please the update us.
The World progress.
That's the kind of question is the related with competition, we saw some fond of raising movements from your peers. So you the cut.
Of the market.
A private and a couple of Margaret could you. Please the update of you. If you have any any more intensified the competition and.
<unk> pitching customers or penetrating.
Penetrating customers.
The third of the questions. It's the relation with the gross margin the ultra look.
The symbol of mentioned and that was trying to telco raise the price.
Two of see any risk of of the other two and we're also very surprised your future.
And the woods.
Will be the.
Gross margin tragedy and the next few of quarters. Thank you.
Okay.
I'll talk about the.
Progressive on line.
And especially for the the Marsha costume.
It's true that the the.
Actually looking to the.
Customers for the.
They called Super small costs.
UK says because this is the one step further in the head of.
The neither of speed and.
And two two and experience and large task customer and use goodness.
Lucas reflective.
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Take of costs visa.
Hundreds of volume, even tens of thousands of the other students in the other day.
So that the.
And.
Teach them together, but the.
They are there and the cost will be through and maybe 10 to 15 minutes and feelings.
Bill will be.
And would there be.
For small groups of sorts of six and two small kids and they kind of work on assignments and discuss with each other or even like the formal competition and review of small group of.
Compete on and he is going to.
I want the Internet.
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Format comments the.
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And and black and Blue.
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The competition, it's true that the I think this year maybe.
Deals with both collate the cost of them in and.
And of course all of the.
The bill in the public market.
So there are more of confidence that you had the standard and.
Only day.
And the school if you turn to.
Small companies or on the new Crawford rollout and the experience.
So we think of.
Those.
Indicates the potential and up to the E. R. P path industry, the recognized more and more people.
Today, and the I'd say <unk> fairly Roosevelt and I think also shows industry of gradually coming into of completes us the.
It's not the.
Stuff similar to you of that conference of all other and across the.
Of all certified.
No confidence rather it's the whole new industry the focus on the hunting engagement.
And the concept of Blue has engagement is more.
And more being of dark.
The the refined by all in the.
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The commerce and and the competition.
And we also saying.
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Part of the information.
Quite clear and the spot.
Technical a R T and the walls a lot of 10 per chatting.
Performance of scale of features and each day.
And how people and requirements and also.
The support.
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And it also the car and for artists among words.
Of the solution.
King of our customers, we have the up the.
Most of the more of the.
With the second one.
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And the power.
All of it and and that's and the matrix and ex all of it also.
And the.
Today.
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We also have.
Of the largest for the community.
Nearly tenfold and few apps and just.
Eight the court by far the lettuce.
Platform and Brooklyn and.
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So.
As to the.
Help moving the quiet and.
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Kevin.
The one definitely the price of this quarter and.
And let me have the lowest price among sheet and the.
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Margaret.
I mentioned earlier.
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Slightly longer.
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Anyway.
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Emulation great.
Great more.
Teachers, so that's the only the documents criminal and kind of our customers and.
And then can.
And the entire Margaret and that's one of them.
At the back to you and do the Heaven.
And secondly.
Great.
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Some of the twins.
Quantity range.
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Hospital Hum of you needed and we'll be able to achieve hargrove Hargrove Margaret overcome it.
And the last name.
And will continue to refuse.
And what sort of a color scheme of options.
Migration and.
February.
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Wow per month.
About the gross Margaret and.
And the near term.
Because we all of these answers and will take time to.
And be reflected in the accounts.
Gross margin team of Meg and depression.
And I can see.
Hi, Nicholas.
What can result.
Thank you.
Thank you so much.
It amazes and gentlemen, it's time and one if you wish to ask the question and our next question comes from the the line of Amerson Chen from the Bank of America Your line of shallow and.
Hi, thank and the excellent.
The question.
My first question regarding the outfit.
And some day.
What's out there and he was.
Casey.
How does change the 30th of that Bill.
And would be.
And how should we looked at.
Failure of houses.
Is it going to be higher that day. It was for the floor. If there's a few of taken working or the.
And can Davis of.
The city.
Secondly.
Revenue and salespeople 80 per cent.
And the maintain out for the of guidance and then.
Q whole retinue of the fall.
40 per se.
So can you give us of all color of the reason.
Okay. So so.
And what we have seen so far.
Two four.
My last question and so we got and a coffee.
I just want to get the rough sense of how much the corporate conduct the.
Yeah of course.
Please.
I suppose they should be coming from overseas and market. So how much percentage of revenue.
The Bill 50, thank you.
Sure.
And I'll take the art and you could it's crunch here and.
Actually in general I think our team and.
Fit the maybe trying to and and almost all of your business that day.
They think there are many challenge.
And and the three P. R. I was talking about the.
And and <unk>.
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And you could start with the you know how to create eggs and also you know and sales and.
Gotcha.
From one small one two of our large and.
And lastly, about ubiquity I could we need to of completely support all cool and frameworks, sometimes the offer is not really neat and all.
All of those framework framework of force.
And the long to have the ability and the amount of the also support for that and confidence for women the truth.
Of happens to build the arts and mucus a flavor of confidence of the.
The the ones that have the most of the port for on the call of course, the wrong and my.
Potentially use and.
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And a.
Harlem.
Because the.
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More you know.
The transmission sunglasses et cetera.
The.
But.
Even like the.
Large caution experience and I was just talking about being made of or tens of thousands can cook on current students and they kind of break called and.
Seven Oh.
Two.
Solid and both of those small.
And groups and then maybe.
Maybe for like the.
Install the discussion or competition within the group and come back and.
Another seconds and all of the.
All of the actor you know.
Program the way all of those.
Have some.
Talents.
How the design the technical infrastructure, because you have to imagine the Max and student and Cheetah.
Teachers could come from all of the war and.
And I'll use different equipment or the license to join the sessions, but the all of these are to have and the same high level cause the for the curtains.
Okay.
And the second question about that and you have some guidance.
I would say yeah cause I'm not suggesting.
Quote of them quarter of telecom.
Oh, that's always the.
I want to be aggressive alright, and the markets.
And <unk>.
And that's and and.
HM HM.
Just the gardens of quickly.
Things have been changed.
Technician.
Well cute for so far and we'll see.
Yeah, and encouraged five one of the next.
And so I'm trying to force.
And hopefully we'll be moving.
And that those kind of course.
And as to the.
Robin the Mexican impact from Quebec.
Oh, that's right and truthfully I would say.
And.
And I was I was almost no impact.
And packed Covid and China.
Okay, China seven contribution of all the time of the more of a.
And 20 per se.
The modem.
Kitchen.
Okay and.
Furniture and.
And that I wouldn't say that kind of a simple.
October.
Okay, and the majority of the conflict.
You too.
Mark expansion.
Alright.
And the smaller.
Small portion of it.
And could you help them to the man.
And.
Okay and this new year.
Okay and the he disconnected his line.
Thank you.
Yeah, we'll move on to our next question.
<unk> of from the line of the reach Valera family of <unk>. Your line is now open.
Thank you and and thanks for the opportunity to ask the questions. Here first just wanted to clarify the comments on Q4, I apologize, but the line is.
The difficult the here, but.
The Jumbo did you say that you did not expect a quarter over quarter decline in Q4, and just wanted to make sure I understood. What your comments were with respect to the Q4 outlook.
Sure obviously Q1 is the only.
And this was also grown into sales.
I wanted to clarify.
We're not guiding and Q on Q slowdown.
Okay that's perfect.
And then you've had a couple of quarters of really strong new customer growth I think probably two of the strongest quarters and your history in Q2 in Q3 and I'm wondering if you can talk about when you expect to see them starting to generate revenue and and maybe if you've seen any.
Early signs of of those added in Q2, starting to generate revenue and just how we should think about those contributing to future revenue growth.
In general and new customer connect three to six months for the ramp up and.
And the SEC Natalie same day.
Well the equipment Cynthia.
Fluctuation from six to 12 months, it's much much much bigger interconnect.
Yes, the question coking coal and the platinum.
No problem and.
And finally had very high usage.
Backlog the.
Technical difficulty and.
Sure.
And given the situation back and they have to.
And had to cope with it.
Whatever.
So you have very high range again.
And the open make known early June and you.
The could fall and.
And that's why it's a lot harder to tell from the.
Net income for the channel feedback.
Okay, and so the customers and will continue to contribute revenue.
Adjusted moving to ensure and patent laws.
The.
Very heavily discounted.
Understood and final question for me and.
In terms of customer concentration I think last quarter, you didnt actually have any 10% customers, but I believe you had two customers that were 9% of revenue I was wondering if you could comment on crude.
Who your largest customers this quarter, how big they were.
Maybe the status of the as to 9% customers from last quarter. Thank you.
Sure.
Quarter, we had one customer slightly of Emerson.
And then top 10 total of 77%.
And the.
And does the customer was the.
Loans in two new members and customers last quarter.
And the other cost number of smaller.
Okay and explain.
Oh the.
Some of the and Christian and cases, especially for.
Public schools and the smarter nope.
The two of the fallback.
Got it the tree helpful. Thank you for taking the questions.
Thank you so much once again, ladies and gentlemen, if you wish to ask the question. It is star and one on your telephone again, it's the starting one if you wish to ask the question.
And ladies and gentlemen.
The starting line if you would like to ask the question.
The Reno further question at this time, it's true see you may continue.
Thank you operator.
Its journey.
As any investors or research analysts have any questions. Please feel free to reach out to us the hour.
The email or any of our IR website todays and.
GAAP cash and also the presentation is available.
On our IR.
Yes, well thank you everybody.
Thank you thank you and.
And that does conclude the conference for today, Thank you for participating.
Now disconnect.