Q1 2021 Pros Holdings Inc Earnings Call
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Greetings welcome to Pros holdings first quarter 2021 earnings conference call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded I would now like to turn the conference over to Belinda over to put senior manager of Investor Relations.
Thank you you may begin.
Thank you operator, good afternoon, everyone and thank you for joining US our earnings press release, SEC filings and a replay of today's call can be found on the Investor Relations section of our website at pros dotcom our.
Our prepared remarks will also be available on our website immediately following the call and will be replaced by the official transcript, which includes participant questions once available.
With me on today's call is Andras, Reiner, President and Chief Executive Officer, and Stefan Schulz Chief Financial Officer.
Please note that some of the commentary today will include forward looking statements, including without limitation, those about our strategy future business prospects and market opportunities and our financial projections and actual results could differ materially from such statements and are forecast in particular, there is significant uncertainty around the duration and <unk>.
Pact of COVID-19. This means that results could change at any time and the contemplated impact of COVID-19 on the company's business results and outlook is the best estimate based on the information available as of today.
For more information please refer to the risk factors described in our SEC filings.
Pros assumes no obligation to update any forward looking statements to reflect future events or circumstances.
As a reminder, during the call we will discuss non-GAAP metrics reconciliations between each non-GAAP measure and the most directly comparable GAAP measure to the extent to which available without unreasonable effort are available in our earnings press release with that I'll turn the call over to you Andres.
Thank you Bill and good afternoon, everyone and thank you for joining us on today's call I'm pleased to share the last quarter, we exceeded the high end of our guidance range across all metrics. We're encouraged by the demand for solutions in the market opportunity in front of us as the macro environment continues to recover.
Enterprises are increasingly looking for ways to sell their products and services digitally.
Industry analysts now expect digital sales to overtake direct sales is the primary <unk> channel by the end of 2021.
Organizations need more than ever a platform they can deliver a true omni channel sales experience.
The pros platform has been uniquely designed to optimize selling across direct in digital channels.
Last quarter, we welcomed new b to B customers, we're embracing the shift to digital selling.
One example is the Luxe U S based provider of business technology and payment services.
With millions of customers across multiple divisions deluxe needed a scalable solution that could centralize and optimize omni channel price management day.
<unk> will leverage or AI powered platform to analyze customers' buying patterns developed real time market, winning price recommendations and identify cross selling upsell opportunities.
With pros the lax will provide their customers seek consistent and personalized buying experience across direct and digital sales channels driving higher win rates same fueling their long term growth.
On the travel side of our business, we're seeing signs of improvement the recovery of domestic in leisure travel in the U S is underway with the rollout of vaccines. We're also seeing improvements in specific overseas markets like China, and Australia, Although it will take time for the industry to fully re.
Recover globally, we're starting to see airlines look to the future and our solutions are at the heart of where they're looking to go.
Airlines are looking to deliver self service digital buying experience to their customers for all their offerings.
Whether you'll be passenger group corporate or cargo sales were bringing to market new innovations in all of these areas and are delivering them to our customers with a fully connected sales experience in our platform.
Airlines are anticipating it pent up demand for travel as the recovery progresses, and they will need a sharp focus on delivering highly personalized suffers the drive conversion of passenger sales in Q1, we launched our approach dynamic offers giving airlines did powered to deliver per.
Life's fear seat in ancillary products and bundles to their customers through any distribution channel.
Powered by AI pros dynamic offers continuously learns passenger preferences everything from seed preferences to ancillary two locations of travel.
In Taylor suffers two those preferences driving higher win rates and better customer experience.
With our corporate sales solution airlines can create manage in renew personalized contracts did include pre negotiated discounts on fears in ancillary services for their clients.
Or AI powered price guidance in omni channel selling capabilities automate contract negotiations for corporate sales teams in enable customers to self serve contracts online. So that airlines can bring business Flyers back to this guys even faster.
Similarly, or air cargo solution empowers airlines to deliver per slice quoting contracts to customers through direct and digital channels.
With dynamic price as they consider capacity constraints in changing market conditions airlines empowered their recovery with our solution by optimizing cargo revenue, while delivering incredible customer experience.
Our market leading innovations for airlines are why in Q1, we were thrilled to welcome United Airlines is a new pros customer.
As senior price is seek solutions to win in digital marketplaces, we're seeing an increased reliance on AI and machine learning to drive business results.
Proceeds at pioneer improving leader of AI and I'm proud to share that last quarter, we received the Nag rule.
2021 AI Excellence award for machine learning.
We've been at the forefront of business AI for decades.
Tenuously delivering leading edge innovations.
We're advanced AI and machine learning algorithms using in symbol approach to combine multiple models to deliver the best outcome possible.
Our models are also adaptive they self learn and recalibrate based on user interactions indeed as signals.
The strength of Rei is proven by the significant ROI, we deliver through win rate improvement revenue growth and margin uplift for our customers.
Or AI powered platform supports everything from customer demand forecasts to willingness to pay predictions to extensible AI algorithms in more we're redefining AI with these market, leading innovations and delivering them with the flexibility speed.
In security required to support global enterprises.
Or had less highly scalable AI capabilities can adapt tweeny digital sales motion.
Which gives companies the power to Taylor online buying experiences to their brand.
Proceeds the first digital selling platform to bring extensible and AI models to market.
Customers can now couple the power over AI and omni channel capabilities with their own science to deliver new digital selling innovations.
HP, Inc, and Siemens both longtime pros customers are adopting our latest innovations in using more extensible and AI algorithms.
H b migrated towards SaaS solution last quarter and will use our AI powered price optimization and extensible capabilities to create more winning offers.
Siemens is expanding their global smart see PQ solution to use our dynamic price algorithms extended with their own science to power digital selling.
We're excited about partnering with the lax each P Siemens and United among others on their digital selling journeys.
Before I close I'd like to sharing an update on our leadership team I'm thrilled to welcome Katrina clear to pros as her new Chief marketing Officer.
Katrina is responsible for global marketing strategy with a focus on optimizing demand generation deepening engagement and increasing brand visibility.
In closing thank you to our amazing global team for continuing to make pros and incredible company.
Thank you to our customers partners and shareholders for your ongoing support of pros.
With that I'd like to turn the call over to Stefan to cover our financial performance and outlook.
Thank you Andres good afternoon hope all of your well on staying safe.
It is hard to believe it has been over a year since we began working virtually due to the pandemic.
While we are still mostly virtual it pros our team continues to execute and support our customers without missing a beat.
Our first quarter results were a nice way to start 2021.
Subscription revenue and total revenue were $42.6 million and $61.4 million, respectively, both exceeding the high end of our guidance.
Our first quarter recurring revenue was 85% of our total revenue in.
And our gross revenue retention rate for the trailing 12 months was approximately 88%.
Now adjusting for COVID-19 related impacts our retention rate would have been approximately 92%.
We expect to drive increases in our revenue retention throughout the year and anticipate ending the year back in the low 90% range.
Our non-GAAP subscription gross margins were 69%, which is down year over year and sequentially.
The decline in subscription margins is primarily due to the revenue impact from some of our travel customers who were significantly impacted by COVID-19.
While we were able to reduce some of our costs the impact on revenue did affect our subscription margins. We expect these margins will start improving again in the second half of 2021.
Our expense lowering initiatives from Twenty-twenty did carry forward into 2021 where total expenses declined by 8% in the first quarter because.
Because of these savings are overall profitability improved compared to last year.
Adjusted EBITDA loss was $9 $4 million as compared to $11.4 million last year.
Now, we do anticipate increasing our investments as we progressed through the year. So the expense savings experienced in the first quarter will be slightly less than the remaining quarters of 2021.
Our trailing 12 months calculated billings improved sequentially due to strong billings in the first quarter.
For the trailing 12 months, our calculated billings decreased 14% year over year.
And the decrease continues to be primarily driven by certain one time billing events that occurred back in the fourth quarter of 2019.
Our free cash flow burn was $4.6 million during the first quarter, which was approximately a $21 million improvement over last year.
We had another strong quarter of cash collections.
We were able to collect a substantial majority of the remaining payment deferrals previously offered to customers last year.
The amount of remaining unpaid deferrals offered to our airline customers. During COVID-19 is now less than $4 million and no longer a significant component of our accounts receivable. So we will not be referencing this amount as we go forward.
We exited the first quarter with $323 $9 million of cash and investments.
And continue to have access to an additional $50 million through our unused line of credit.
We ended the quarter with 54 quota carrying personnel up slightly from year end.
As previously discussed we expect to increase the number of quota carrying personnel throughout the year and exit the year with more than 60.
Before turning to guidance I would like to discuss the impact of COVID-19 on our reported financial results.
In 2020, we experienced headwinds to new bookings customer contract restructurings customer bankruptcies and project delays because of COVID-19.
These headwinds had implications for the first quarter and to some extent will continue to impact the rest of this year.
We expect our subscription revenue to grow in the second quarter and the full year, but the growth rate will be lower than our subscription bookings as the revenue recognition impact will lag the subscription bookings.
From a travel perspective, we are seeing increased demand for leisure travel, especially in the United States and parts of Asia Pacific Power.
However business travel appears to be recovering at a slower pace in.
In addition, even though we have seen increases in passenger volumes in the United States and parts of Asia Pacific a good portion of our travel business is in international regions, where passenger volumes are still down.
We anticipate that many of our international customers will recover at a slower pace.
And so now for our second quarter guidance.
We expect subscription revenue to be in the range of $43 million to $43.5 million and total revenue to be in the range of $61 million to $62 million.
We expect second quarter, adjusted EBITDA loss to be between nine and $10 million and lastly, with an estimated non-GAAP tax rate of 22%, we anticipate second quarter non-GAAP loss per share between 'twenty, one and 23 cents per share based on an estimated 44.3 million share.
Shares outstanding.
And even though we understand it will take time for the global travel industry to recover we feel confident enough in the stabilization of the macro environment and the momentum we're seeing in our business to reinstate annual guidance.
So for the year, we're guiding to the following.
Total revenues of between $250.5 million to $253.5 million.
Subscription revenue of between 176.5 to $179 $5 million.
EBITDA loss of between 33 and $36 million.
And free cash flow burn of between 35 and $39 million.
We're also expecting to see our air or grow in 2021 and are guiding to ending a R. R of $211 million to $216 million.
Also during the quarter, we adopted a new accounting standard for the convertible debt on.
Our convertible debt is now presented on the balance sheet at par value rather than the discounted balance this new accounting standard did not have any impact on our non-GAAP operating results or cash flows.
In closing it was an unprecedented year for all of us and I'm incredibly proud of our team for executing to our mission throughout the past year.
As we start to emerge from the pandemic, we are very well positioned to return to the growth trajectory, we experienced before the pandemic.
Thank you for your support of pros and we look forward to speaking with you at our upcoming events.
I will now turn the call back over to the operator for questions operator.
Thank you.
To ask a question. Please press star one on your telephone keypad.
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Our first question is from Chelsea <unk> with Northland Capital markets. Please proceed.
Yes, Thank you and congratulations on the strong results, especially the billings very impressive I believe those up 18% year over year in the quarter.
And up relative to pre pandemic levels as well is that correct.
Yeah failure.
You got from math right.
Alright good.
So, let's just first talk about the quarter real quickly you did come in above.
Guidance on all the metrics, but what would you say is a top two drivers of that.
Yeah. This is andres.
Overall, we're very pleased with the sales execution.
Especially on the beta beside travels continuing to do well as well.
But definitely continues to be impacted.
From COVID-19, but overall on the beta beside North America, and Europe performed very well and I would say.
About 60% or two thirds of the deal it's coming from net new opportunities. So overall really pleased with the results.
Okay, well that's great.
And I presume that the strong billings is what's behind the confidence to guide to a sequential uptick in subscription revenue as well as providing the.
Full year guidance, but when I look at the.
June quarter subscription revenue guidance, it is up modestly well why not a bigger sequential uptick.
Yeah, So nicole.
You're right about the assumption that was two things one it was seeing the billing the improvement in Q1 also seeing what we're seeing in terms of our pipeline as we go forward.
But there is a there is a time.
You know, there's a time lag a bit between when we had the bookings and when that revenue starts to come on line and I think as you look at our year as it's going to play out you'll start to see the layering effect of those bookings really start to help our subscription revenue.
In the third and fourth quarters, especially it's going to be a little slow out of the gate, but we'll see that benefiting us as we get into the latter half of 2021.
A question for Andre you mentioned that you've seen the adoption of extensible AI. All goes I think HP and Siemens are two companies that you had mentioned.
What type of incremental value.
His pro able to get.
Customers adopting subtle lucked out relative to current call for core offering on the B to B side.
Yeah, No. That's a great question. So I would tell you that on <unk>.
Now, we Thor AI whenever they really amazing keep the deli case issue can extend our algorithm. So a customer can actually augment and bring in their own algorithm and be able to run both or algorithms in their algorithms, which allow us and the full power of book.
Our omni channel capabilities with the speed performance security by being able to very easily extend and augment the algorithms and the dose cases long term pros customers HP had been using or AI price guidance, we're now almost a decade.
And that is continuing to innovate on their own algorithms and we've been able to prove the value on.
Are there additional enhancements to the algorithm.
That will drive a significant ROI for them and in the case of a Siemens had been as smart CPG customer and it's now extending to bring the full guidance capability.
As well, it's on maintain and we're one of the first AI company to allow not just to bring in algorithms that would be able to augment.
Which we think it's part of the future as companies.
Embed data scientists within the organization is giving them the canvas to innovate with speed.
But leverage the full platform capabilities of our platform.
Okay, great. Thank you congratulations on a good quarter.
Thank you. Thank you.
Our next question is from Scott Berg with Needham and company. Please proceed.
Hi, Andreas and Stefan Congrats on a good quarter I guess a couple from me first of all Andres you mentioned, you're welcome United Airlines.
Our customer fold here on the quarter can you tell us a little bit more about that contract is that on the passenger side or maybe the cargo side and maybe what the extent of that opportunity with them looks like.
Yeah, I would tell you very excited to welcome United very proud to have them as part of a customer can tell you. We can't officially share day area, but I will tell you is one of our new areas of innovation that we're doing said very strategic project for United in any area that we've been innovating.
<unk> and solutions that we've launched more.
More recently to the market.
It is an area that will allow us to start innovating together due to innovate further in the future.
And they're very excited about working with United I think it really proves that a lot of the innovations that we've been doing in travel is really where the market is needing to go.
And as I talked in my prepared remarks, I think it division in travel.
Really moving to a full digital sales motion for passenger groups cargo and the contract side of the business.
It's really resonating in the market.
Got it helpful and then.
Stefan you talked about giving full year guidance first time, you've obviously given it in about a year.
And your increased confidence in the business I guess, what are you seeing the biggest delta from 90 days ago, roughly from where we are today in terms of that increased confidence.
Yes, Scott I'd say, it's in three areas.
One was the.
The successful billings quarter, we had in Q1 that certainly has a lot to do with the second thing was the.
On the pipeline and the and I'd say, the overall sentiment that we're seeing from customers and prospects and how they're approaching our sales team and then the third thing would be.
I think the stability in the overall macro environment.
When we look back at last year, we were seeing customers, especially on the on the airline side asking for relief asking for some form of concessions.
While those aren't completely gone they have they largely.
Gone away and so that that level of stability plus the what we're seeing in the first quarter on what we're seeing as we look forward.
It was really reminding us of what it looked like free COVID-19 and so.
That's what gave us the confidence to feel like we can put numbers out that.
We feel.
You know are very much achievable.
Great and then last one from me on the growth investments that are coming in the model. The second half of the year. If you were to handicap those numbers how much goes into the <unk> side of the business do you think Andres versus maybe true.
With the improvement hopefully coming there.
Yeah, So I would tell you like.
<unk> is driving the majority of the growth.
And we'll continue to drive through the year and we're really pleased with you know really send side Q3 of last year. It's been gradually improving I can tell you in Q1, we saw continued to see the improvement and I can tell you from what we're seeing in the rest.
The year that the demand overall has continued to pickup cigna.
Significant more rfps and <unk> and I would tell you that from a sales cycle of sales productivity, we're seeing good improvements.
Okay.
Great. That's all I have thanks for taking my question strength.
You.
Yeah.
Our next question is from Tom Roderick with Stifel. Please proceed.
Hi, it's Max on for Tom Thanks for taking my questions I guess I want to start Stuart with free cash flow.
Collections again, because it's in the second quarter on an ROE that there is a pretty nice.
Unexpected collections from customers as it would have to do with the contract negotiations and airlines kind of coming back quicker than expected.
Well I think to some extent I mean, we had.
Right at the outset and probably into the middle days of when we were in the heaviest parts of COVID-19.
We we offered some some extended payment terms for some of our airline customers.
You may recall that that spike at the end of our second quarter last year and so as we went through the end of 2020 and into the early days of 2021, we did see.
Some of those extended terms, where the airlines did pay those those invoices and that certainly was a help to us to your point in the fourth quarter and in the first quarter of this year I think one other thing that.
I implied in other parts of the discussion, but I did not.
Is it clear are specifically say as it relates to free cash flow.
In the quarter, but we had a couple of other things that contributed in addition to the strong collections.
We also had the.
Expense savings that I referenced.
The 8% savings that we had year over year, certainly had a part on that and then notably we add.
And incentive payment that was drastically lower.
The first part of 2021 and say what it was in 2020.
Clearly, we had arguably the best year on the company's history in 2019, which which really resulted in a fairly large incentive payout in 2021, and we had the opposite because of COVID-19 that occurred in 2020 that impacted 2021.
Got it that's helpful. And then just kind of thinking about those contract negotiations on where those airline customers may be left are you guys seeing.
Nice recovery in that area.
Or is it still kind of a second half 'twenty one early 'twenty two before theres really any meaningful contribution to the bookings.
Yeah, I would tell you that right now we're not seeing a meaningful change to those contracts and don't expect them to see this year, we expect that did come in.
As the day the passenger demand continues to improve you know and I would say more towards next year, rather than this year on the back half.
Got it thanks nice quarter guys.
Thank you.
Yes.
Our next question is from Stan <unk> with Morgan Stanley. Please proceed.
Perfect. Thank you so much guys and congratulations on a good start to the year.
Couple of questions from my end.
And maybe I'll.
Try to ask it a different way on on the United piece.
Perhaps yeah.
Why after all these years, they decided to become a customer.
Because clearly there's a big airline there we're doing a lot of stuff on their own and now coming out of COVID-19.
They decided to kind of rip off the band it and work with you rather than doing it themselves.
What is there any kind of coincidence that those things happened simultaneously.
Coincidentally.
I would say that that they're continuing to innovate and I would tell you United has a very strong R&D team that's built their own technology and I think that a lot of our platform strategy has been designed in a way to allow customers both beta being travel.
On to extend our platform.
If you look at a lot of our investment in innovation in our platform is giving them a and this too to really innovate even faster. So I would tell you they're going to continue to innovate there we're not going to stop their innovation.
But theyre going to have areas, where where we can give them.
<unk> faster time to value.
Because we're leveraging our platform. So I think we're creating a real win win scenario with them where.
Where we are complementing each other and now the beauty of our cloud platform now is that it is extensible.
And it allows them to innovate in conjunction with us, but not having to build everything from the ground up.
In the areas I think it is also a testament to the airlines want to automate every aspect of their sales motion digital.
And the areas that we've been innovating on our exactly around those areas. So I think it did validate.
On a lot of our roadmap and innovation in us continuing to innovate during the downturn.
And we knew that that airlines when they come out they're going to have to innovate and and.
And our solutions, we believe are market leading.
Okay perfect.
That's very helpful and maybe switching over to the.
So the <unk> side of the business.
It certainly feels like.
On the selling the selling environment is improving and that's that's partly from you know the what gives you the confidence to increase our and actually provide net increase provide full year guidance.
Is there anything else happening in the on the <unk> side as you know, there's almost like some kind of pent up demand.
For business transformation type of solutions coming out of COVID-19, where everybody was so focused on basic business continuity and now theyre really refocusing their budgets for 2021 on really pushing their businesses forward.
Yes, and I would tell you in general we've seen on much more consistency in our sales cycles.
Overall as.
As we look at the pipeline the demand on the none.
<unk> of Rfps, and how well we're executing on.
Think that gave us the confidence in the market I would tell you. The same themes around digital selling are really resonating and b to be a lot more <unk> companies start thinking about self serve commerce and not just how they're powering the ecommerce, but marketplaces and being ready.
The notion of AI empowering AI for sales around price guidance and offer optimization is resonating really well in our innovations there with our new guidance for both negotiated price guidance in non negotiated free digital channels is resonating really well and we're seeing.
<unk>.
Yields.
<unk> be more consistent in terms of improving to historical norms from a sales cycle time perspective.
And that's what gave us really the confidence also knowing that travel has stabilized.
The combination of both of those really gave us the confidence to provide full year guidance.
Perfect. Thank you so much.
Thanks.
Our next question is from Jackson Adler with J P. Morgan. Please proceed.
Thanks for taking my questions.
First one on pulling up on the guidance.
And then.
Relative to what may be step than you were expecting last quarter. I think we are looking for year over year growth.
I know, it's nitpicky, but now that the new midpoint is more like flat to down and.
With travel picking up does that kind of imply that.
Maybe the <unk> side of things is.
On on balance a little bit below your previous expectations.
No I would say <unk> is actually.
If I compare to where I was thinking 90 days ago, I would say that we feel better about <unk>.
<unk> I think we.
We feel also slightly better about about travel what I would say about our guidance overall as you know on.
Our guidance process is very similar to what we did a year ago and that.
We do the modeling and we do the assumptions and basically put numbers out there we have a pretty high degree of confidence we can achieve.
Okay Gotcha that makes sense.
And then the follow up.
Without naming names here, but.
Could we just size the potential wallet for let's say a top tier.
Airline carrier.
What do the largest airlines potentially what could they spend with a with a bumper like pros.
It's.
It's several million dollars.
When you look at the entire portfolio, especially if you like you said if you are talking about a large airline.
It could be yes, it could be.
And you know call it in the high single digits.
<unk> is a $1 per year on subscription fees.
Okay, Yeah, that's great. Thank you.
Thank you.
Our next question is from Chad Bennett with Craig Hallum Capital Group. Please proceed.
Great. Thanks for taking my questions. So maybe first for Andres just send the b to B side, just curious, especially year to date, we've seen a significant amount of commodity or input inflation from a macro standpoint, and I mean, knowing you guys fairly well on your vertical exposure on the <unk>.
Syed.
Whether it's the chemicals energy piece or food and consumables or auto industrial.
You know I I would think and you know maybe you don't want it necessarily highlight inflation, but I would think you would be the ideal solution for those sub verticals kind of dealing with pretty pretty pronounced inflation. These days, just any any kind of comment on and if that's true.
Inspiring and the pipeline and in what what you feel or are seeing there yeah, not Chad that says apps.
Absolutely I think that that's an area the more.
Volatility that there is.
On the more that that companies have to drive real time price and real time price changes and I think that in general what we're seeing with the market is that companies were historically b to B Watson uncommon that you would change price maybe quarterly maybe annual.
That cant happen anymore, you can't you really have to be much more dynamic and that's where you know the power of our platform in our algorithm sorry I E.
As as any change is happening.
You were able to drive those changes dynamically.
And not not have to go through.
Rigorous process to go through.
So overall I think that is a component I think the other component is that the area of moving to digital and a lot more companies are.
Really believing that they will sell digital it's Gardner is expecting now indeed, a b that 50% of the BW transactions will happen in a digital channel by the end of this year, we're seeing some of our customers already doing 70% of their business and digital channels.
And Gartner is predicting that by 2025, 80% of <unk> transactions will happen in digital channels to do that.
You need to be able to provide a real time market price that customers will buy them.
You can see it if you put a static price that's not relevant to the market youre not going to close business and that digital channel will be just said digital catalog. So I think those two trends.
You know are definitely helping us on the <unk> side.
Where do you think you are in terms of true.
AI product adoption.
On the <unk> side of the business and in your base do you is.
Is it still fairly early there.
I would say is very high I would tell you it's rare for us on.
Not to have say new deals not to have AI being a core component.
Whereas historical you would see more price management I would say on.
Companies are starting with AI.
So they have to make sure.
Pretty significantly got it and then maybe one quick one for force Stephane just Stephanie if you look at.
I think someone pointed out, but but recurring deferred revs were up pretty nicely sequentially.
It is.
From this baseline in March should that should recurring deferred revs continued to improve sequentially throughout the year or or are there still going to be some puts and takes to that that piece.
Yes, so there will definitely be some puts and takes to it so.
We had a very strong Q1, which is which is consistent with what we've seen in the past like in.
Q1 of 2020, we saw something very similar.
So, yes, I would say that overall, we expect to see calculated billings.
As an output from the deferred revenues.
Show nice growth throughout the year I would tell you that deferred revenues.
Current deferred revenue to your point are going to be kind of moving up and down depending on the seasonality and when those invoices are going to come to got.
Got it thanks, and nice job on the quarter end and are looking forward to seeing improvement throughout the year.
Thank you. Thank you.
Our next question is from Jason <unk> with Keybanc capital markets. Please proceed.
Hi, This is actually doesn't on for Jason Tonight.
A question on B to B.
You mentioned, North America, and Europe had a particularly strong quarter.
But could you dive into the sub segments and comment on some of the industries that you're seeing there.
Doing better or that are still lagging in the pace of recovery during the quarter.
We're seeing strength in industries like industrial manufacturing healthcare distribution and services I would say those are.
Some of the industries, where we're seeing.
On particular strength.
Yeah.
Great and just one more from me could you provide some commentary on how the linearity on business trended and both could be to be on travel segments. During the quarter on any color you can provide on that.
I would say that we.
We'd love to have a very linear quarter, where its a third a third a third I would say that was not the case in the first quarter.
But I will say as we look at the second quarter, we are seeing much more of a return to a linearity.
Form of bookings so it's just the way the deals lined up in the first quarter that.
They were a little skewed towards the end.
Great. Thank you.
Thank you.
Ladies and gentlemen, we have reached the end of the question and answer session I would like to turn the call back over to.
Linda over to put for closing comments.
Thank you for listening to today's call. We look forward to speaking with you at conferences and events. This quarter, we will be attending the Needham technology and media conference on May 18th the J P. Morgan Technology and media conference on May 24th the Stifel Cross sector Conference on June eight the Bank of America Securities Conference on June nine.
And the Baird Global consumer Technology and services conference on June 10th.
Do you have any questions. Following today's call. Please contact us at IR at pros Dot com, Thank you and goodbye.
This concludes today's conference you may disconnect your lines at this time and thank you for your participation.
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