Q1 2021 Altus Group Ltd Earnings Call
[music].
And use release announcing our results was issued after market close of this afternoon and it's posted on our website along with our interim MD&A and financial statements.
Turning us today, our CEO, Mike Gordon and CFO Angelo Bartolini.
And we'll start with some prepared remarks, and then we'll move right into the Q&A session. If we miss any questions. Please contact me directly by email.
Angela will begin by covering off of our financial performance during the quarter and then Mike will provide an operational update before we get started please be advised that some of our remarks on this call may contain forward looking information and please be reminded that Altus group uses certain non-GAAP and non <unk> measures as indicators of the financial and.
Additional performance forward looking statements and and explanation of these measures are detailed in todays news release and and our related reports on Cedar.
And with that I'll now turn the call over to Angelo.
Thanks, Camilla and thank you all for joining us this afternoon.
Following a strong finish to 2020, we had a very productive start to the year moving at an accelerated pace against the number of strategic initiatives.
<unk> closing on two strategic acquisitions, and making solid progress on our cloud strategy and you'll hear from Mike today.
While delivering robust financial results across all of our key metrics and business segments.
We're starting to see the financial debt benefits of some of the changes we've been making to our go to market plans across the organization and more to come as we just starting to hit our stride.
Above all taken into consideration and the strong year over year of 42% bookings growth I'd also say analytics and Q1, the growing pipeline of future opportunities across the company and the strong backlog of property tax Appeals, we're feeling pretty good about our top line growth accelerating this year.
Turning to the quarter and business segments on a consolidated basis revenues were up four 5% to $137 2 million, while adjusted EBITDA was up 30% to $17 2 million.
Moving on our margins from 10% last year.
Nearly 13% and Q1.
As a reminder, our.
Our adjusted EBITDA results by.
By segment now include the new bonus treatment that we discussed on the last earnings call.
Basically we started to accrue variable compensation costs within the respective business units on a quarterly basis versus formally doing it and the corporate segment and we are reallocating to the views and Q4.
Our 2020 comparative results have been updated to reflect this new methodology.
And I'll just analytics, we had healthy growth across all key business lines.
And I was experienced in Q4, FX continued to be of headwind revs.
Revenues were up 5% to $54 2 million or 8% on a constant currency basis.
Of which overtime revenues are key metric were up 7% of $42 8 million or 10% on a constant currency basis.
This was all on an organic basis.
We also had a notable.
The improvement in adjusted EBITDA, which was up 23.
The 10.2 million or 30% and of constant currency basis.
With margins improving from 16% last year to nearly 19% this year.
To add some color on the revenue performance.
First as you are aware, we moved two of full subscription model since the start of 2020.
And although we still had some lagging perpetual deals and the comparative Q1 and 2020 number.
The revenue impact of our model transition is now largely behind us providing for a smoother year over year comparative performance as we move through 2021.
As mentioned.
<unk> continues to be of headwind and.
And is expected to remain and pressure point for Q2, as well, particularly on USD.
And when the exchange was 1009 Canadian to U S dollar and 2020 compared to <unk>.
Compared to $1 <unk> today.
With the addition of Finance act of starting in Q2 will be increasing our basket of currencies and FX impacts should be better mitigated.
Our overtime revenue base continues to build and we feel good about achieving double digit growth for full year 2021 on a constant currency basis.
And Q1 over time revenue growth was driven by higher subscription revenues, reflecting the stacking effect of the subscription revenue model of both current and past deals.
And overall higher license sales supported by steady customer expansion and the addition of cloud clients.
More on that from Mike shortly.
And we continue to sustain strong performance and appraisal management solutions.
And the healthy cadence of new client additions as well as our existing clients, adding more assets on our valuation management platform, which was recently rebranded as rguest value insight.
Reflecting our ongoing efforts to bring our analytics business closer.
In addition to healthy overtime revenue growth total revenue growth was also benefited from a recovery and our software consulting and education services and overall, we're pleased to see our AE software maintenance retention holding at an industry leading rate and continue to expect it will remain around them.
Mid 90% range.
The key highlight for Q1 disclosure of the introduction of the bookings metric for Altus analytics segment.
It's been a minute walk you through this.
Our bookings metric includes all of our altice analytics revenue streams, both overtime and nonrecurring.
For the recurring over time streams we.
We take the annual contract value for new sales and this includes software appraisal management solutions and.
And our data subscriptions on renewal accounts.
On the renewal contracts, we cannot only the incremental portion that was not and our revenue base previously.
And for the nonrecurring onetime engagements such as consulting and training and due diligence work, we take the total contract value.
In Q1, we posted an impressive 42% bookings growth.
Which actually would have been 46% on a constant currency basis.
And we finished the quarter with a growing pipeline of future opportunities.
The recurring bookings and the value of each new contract adds for already significant level of overtime revenues and supports our ability to achieve healthy over time revenue growth and the coming quarters.
With the nonrecurring bookings this will be reflected and point in time revenue and the coming quarters as we deliver on these engagements.
Also as you know starting in Q2.
And we'll be including finance active and strategy and analytics.
Stratagem is on early stage company within the tractive market opportunity and finance active has a very attractive established financial profile.
Steady top line growth supported by large cap mid.
The mid Ninety's gross retention and 90% recurring.
Reinforcing how mission critical it is to clients.
As a reminder, we will record a purchase price accounting adjustment to the deferred revenue <unk>.
Impacting margins this year.
Taking into consideration of the accounting adjustment to Finance Act as deferred revenues combined with our investment and to accelerating our data strategy, including building out the strategy of analytics platform. We expect our full year margins will be similar to last years, and we should see an acceleration next year.
On the whole, we still feel good about delivering double digit earnings growth this year.
As we look ahead, we feel good about the opportunities for 2020 one from the strong Q1 bookings as our pipeline builds and sales activities ramp up and as S&P SMB volume and software services continued to rebound gradually.
Mike will provide an update on our cloud migration journey. So I'll move ahead to our CRE consulting segment the.
And the property tax it was another solid quarter, the tempered a bit by ongoing settlement delays and the U S. I'll say reinforcing the resiliency and geographic geographically diversified model.
Our Q1 revenues were up 4% to $54 7 million and earnings were up 19% to $11 1 million growth was driven by a double digit increase and the U K, where we had a higher case settlement volumes and robust earnings and robust growth in Canada, where settlement volumes remained healthy.
And the U S. Our pipeline is strong, but the COVID-19 related delays and settlements that we saw in Q4 persisted into Q1.
As you know the pandemic impact was mostly related to the anticipated timing of settlements basically the opportunity didn't go away rather it just gets pushed out into the future quarters.
And I would add the pandemic has also impacted some of our typical cyclical trends such as both in the U K and more recently, Ontario cycles, extending till the end of 2022.
Overall, it was a solid quarter is characterized by appeals.
Primarily by drawing on a credit facilities, while stride of them with purchase with cash on hand.
Factory and this and funded that to eat get the ratio would mood, she just or two times range still maintaining a strong financial position.
With that on now turn it over to Mike.
Things and as well and good afternoon, everyone.
And you just heard we had a solid start to the year and we're getting our growth engine going.
I'm really pleased with the progress over the last several months and and like to congratulate and my colleagues on their strong execution.
Having covered a lot of ground on our last earnings call I'll use my times, a day to provide and update on our cloud transition progress or integration plans for finance active and how the shredded them analytics plan of form and team fit within our data strategy and update on how we are progressing against the number of organizational and if.
She lives.
And Q1, we were in building mode revamping, our sales structures and go to market plans, adding executive talent refreshing strategies and expanding our platform with new capabilities to accelerate our move into the debt and data market Adjacencies the.
It was a busy period and the momentum continues into cute too.
Starting with our cloud migration journey accelerating August enterprise cloud adoption, both with our existing clients and with our new clients is our top priority.
Nothing is more important to us than that.
Our focus this year is on customers that will derive the highest value and who are best positioned for a quick and seamless transition.
We've been rig revamping, our sales processes and product priorities by customer segment around that including tailoring, our sales and marketing approach by customer second.
On top are dedicated cloud Tiger team is prioritizing high value transition opportunities by proactively addressing all of the client decision factors, including selling on value by addressing and pressing pains and gains solved via the cloud capabilities.
And it's predominantly for August enterprise, but there's also includes our other software products and this is higher than any quarter of it that we had in 2020.
With the growing pipeline of opportunities I continue to feel good about our goal to contract about 30% of our top 25 customers by the end of the year.
Through of revamped product roadmap and sales structure of this year I believe the pole will become more convincing.
The conversations I am having with our largest clients reinforced and and this is of strategic priority for them. So really it comes down to the timing it wouldn't most suitable for them.
Recent product updates such as the API capabilities and the single Federated sign on stand out is key value ads for the larger customers, who no doubt recognized the many strategic benefits of being on cloud based platforms.
The strong bookings performance and Q1 was very encouraging supporting are positive outlook for the year to deliver double digit overtime revenue growth on of constant currency basis.
On the product roadmap, we're sustaining of good pace of product innovation from our product development teams are.
A big part of the pole into the cloud will be driven by customers getting more value from the cloud. So we're focused on building out the platform with new functionality and product releases and March we launched the already API connector and on May 10th we're launching the August cloud warehouse.
This is the dynamic data warehouse solution that will enable investment managers to run customer reports from there hosted August enterprise and August Holly on his models.
Which also facilitates the integration of August data with popular B I tools, such as tableau power B I quilt.
And even the customers one data warehouses.
Throughout this offering our customers will have a single data model facilitating reports that drill down from investor level through to the investment.
Building and least levels.
Do you use cases are plentiful.
For analysts and asset managers, they can slice and dice the outputs from their models to better understand the drivers behind the projected performance of their portfolios run scenario comparisons for what day of analysis on potential acquisitions.
Or future market conditions for.
For the fund managers there'll be better equipped from the fund reporting on project the results and can now overlay with non August data for their reports.
And finally for the it professionals it's of Streamlines enterprise architecture that help standardize on VA tools throughout the organizations to group create compelling efficiencies.
And again this is only available at the customers through and the active H E or August tally on cloud subscription.
Now turning to the recent acquisitions.
The acquisition of finance active is of critical step to accelerate our growth and the debt asset class a high value adjacency that fits very well with our strategic roadmap and addresses growing client demand.
We have about a month under our belt since closing and integration is progressing smoothly with the head of our product strategy factory, who is also based on Paris running integration, we of a well designed integration blue plant with the solid track record of integrating acquired companies.
And the near term, we're focused on delivering the original finance active budget and minimizing any disruption to their daily business, while we assess their business processes procedures and systems.
Our recent efforts have been on the HR finance and.
Case, and we're extremes with back office and integrations.
But most importantly, we have also.
Quickly assembled the Swat team with members from both sides and start to leverage our combined capabilities to tap into cross selling opportunities.
We're targeting near term opportunities predominantly focused on common clients and debt valuation and North America, and then also selling August cloud more fully into the European sector.
Our initial focus is on the back and office integration to help bring our team's closer together and then we'll move to the front and platform integration moving them to a cloud infrastructure and product integration.
We're also really excited about this week's acquisition of Strategem analytics and early stage day to science as a service company focus on the real estate and state sector.
This will be foundational to our data strategy and another strong deliverable against our strategic priorities.
The strategy analytics platform integrates vast amounts of granular local demographic and economic datasets, the generate predictive models and analytical tools that enable their clients to better understand the factors influencing the market and build more accurate models and forecasts of.
Of particular interest the strength of them engine Leverages machine learning capabilities to process large amounts of data and identify correlations between data points. This helps clients better understand what is happening in real time.
The CRE market is on a journey looking for greater intelligence and higher performance. We think that there are three distinct phases in this journey.
One is focused on what happened.
Two shifts to why it happened and.
And phase III focuses on what will happen next.
And as I discussed on and the last call the data opportunity, we're narrowing and on is combining real time data driven insights with predictive analytics and alert capabilities.
Really we have tools and solutions and look backwards of what happens straddled him will help us breech the gap too why it happened space too bye accelerating our plans at least two years and position us to rapidly transition to phase III predicting what's next.
Strand of them analytics will be a core component of our data strategy, combining valuable data science talent and technology.
Other with our appraisal management solutions through August value insight and with our August software applications to develop uniquely focused.
Assets on the real estate market.
As you heard me say before 2021 is a key execution year, and we're investing and our growth engine across all of all of this related to that our focus remains on building out the infrastructure and go to market strategies to accelerate growth over the long term.
Reflecting on a revamped sales and marketing efforts. We are also planning the focus more of our market and spend this year unqualified lead generation across all of our businesses.
This is a shift from historically being overweight on brand awareness and something we could successfully scale across various various geographies for all of our businesses we.
We have hired a new chief marketing Officer, Ernie Clark, who just started this week as well and as part of his 90 day plan. His focused is on our demand generation framework and brand strategy, having worked with the Ernie and the past I of full confidence and the value, we can and lock through a customer and product focus and marketing <unk>.
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Overall, there is a lot of progress happening across the organization.
And is Angela said, we're just starting to hit our stride and beginning the C returns on our investments and improving and other areas of the business debt in my experience are leading indicators for future revenue growth both of all of this analytics and and property tests.
And property tax the integration under of global operating model is going extremely well bye.
By one measure we're seeing notable improvements and business development activities and leagues and although we don't report. This on this metric externally at this point our property tax bookings with solid and Q1, another strong indicator of our market share growth.
The global coordination on our Digitization initiatives is in progress too and our programs of started on digitally and digitizing all pieces of our tax workflow in our three national jurisdictions. We are on track with our plans, which will allow us to realize more value for our clients.
In addition, and we're also seeing and improved M&A environment for property tax. So we will be opportunistic as attractive opportunities arise where one of the largest and fastest growing tax virus, <unk> globally, with and attractive growth opportunity and of consolidating industry.
With our new market leadership, and the buildup of our tech and data platforms, we have a unique opportunity to and more tax practices to our platform and meaningfully enhance their values by strengthening their delivery models and client and outcomes through technology data and analytics.
As I start to wrap up.
We're really excited about the opportunities ahead of us with our long growth runway for our existing all of this analytic solutions, new opportunities and the debt and data adjacencies and with the untapped opportunity to really evolved property tax we remain very advantageously position to reach.
<unk> potential.
We do have a lot of work ahead, but we have a solid strategy and the best team and our industry to execute upon it and.
And closing I wanted to thank our customers for their continued commitment to all of this and to congratulate our employees again for the solid execution and Q1.
Let's open up the line for questions now operator.
Thank you we will and now begin the question and answer session.
To join the question key you may price of staff and the one on your telephone keypad.
Hear of tie and acknowledging on the crest. If you like anything of speak of hang please pick up your handset before pressing any key too.
Do you withdraw and your question please press stock and K.
You know of fast question.
And it's from the Chick teeth the.
National Bank financial please go ahead.
Yes. Thank you.
Just the sort of a broad question the start off with with the sort of the U S. Leading the charge on the reopening are you generally seeing the.
[noise] cadence improving in terms of the pipe line of prospects here.
I think that when you look at the pipelines the pipelines and the U S businesses are really strong Richard and what we're seeing all all cross.
Pretty much all our businesses that are pipelines or improve and we.
We did do a fairly good job of maintaining solid pipelines during.
Probably some of the worst times of the pandemic, but what I do is and what we're starting to see with our pipelines and what we saw with our first quarter bookings is that we're.
We're seeing a lot of strength coming out of the things and we had expect and some of this as we started talking to our customers and you are starting to position themselves over the next couple of years.
Okay, that's great.
And my next question has to do with the.
The August the warehouses sounds like an exciting opportunity just wondering if it's possible for you the kind of help us the size what that incremental opportunity and maybe if we sort of look at.
Our numbers and growth here over the next year.
Well, it's it's.
We do have price points on it and we certainly can take you through through those we definitely see this is a good upsell for us because as we look at bridging art or stratagem into our art as cloud. The argot date of warehouse becomes incredibly important for the ability to curate and.
And migrate the data effectively.
So right now.
And what we're seeing is going into the queue three and queue force since we're releasing it really and the middle of this quarter, we're seeing a very strong pipeline on it and the least with what I've seen from our team's we probably have somewhere between 20 and 30 opportunities.
Okay, Great and just the last one from you on straddled them.
Sounds like an exciting transaction.
Do they have kind of the roster of.
Sort of of moving your twin size clients already and just trying to get a sense of I don't know the company at all.
[noise].
There are there are there are a small startup, but what really.
Got her attention and they already had a number of good sized clients that overlap with our clients that and between Matt and getting and understanding of like how their machine learning engine work. We thought that this would just be a great addition to.
And the August cloud.
Warehouse, what we Wanna do on data and we thought that you know and talking to those customers, we got nothing but great returns. So they they do have some meaningful and the large customers.
Okay. That's great. Thank you.
Thank you and.
Next question comes from Daniel Chang and tedious to carry please go ahead.
Hi, Thanks, and just wanted to get some clarity on the overtime revenue looks like it declined by 2% sequentially. So just wonder if you can help me understand that.
Why that is when caught adoption increased eight percentage points sequentially and then the maintenance retention rate remain consists of the mid 90% range and I know you mentioned FX, but I think that was on a year of your basis is that the only thing that's going on here and was there something else.
Well, primarily yes.
And that's the biggest impact when you're looking at it and.
And Canadian dollars.
But yeah that would that would have been the biggest impact on a year over year basis definitely and do you think.
<unk>.
On the sequential basis do you have the metric and the constant currency.
The sequential metric.
Well, if you went back to the last quarter, you'll you'll you'll see our overtime revenues.
And you'll see you should see.
Alright, I believe the sick.
From last quarter.
Okay.
And then and if we kind of I want to I just wanted to make sure we understand the new bookings metric properly and I Wanna make sure that we're using it correctly.
Usually use and a book to bill metric and.
And you mentioned that you are taking the annual contract value of recurring sales. So I just Wanna make sure if you're if you're signing a three year contract worth $300 and total you would only be including of $100 does that and your bookings by the trick is that correct that is correct. That's correct. Okay and do you have a sense of.
What the bookings would be if you had included the total contract value of of all deals.
Sorry, do we have that we.
Well, we could we haven't disclosed that metric.
Okay.
Yeah.
Alright, Thanks, a lot that's all I think.
Daniel the den.
Daniel just for Edification, most of our long term contracts tend to be Angelo as of Thursday between three and five years.
Three to four years.
Three to four years, we do we do have we do have a few of them are five years.
But in general the tend to be and that three to four year range.
Okay.
And the reason and hence the reason why we picked on like an annual contract value. Daniel So that we could take a look at that over time in case of total contract value, we got pushed on a little bit and one direction.
Okay. Thank you.
Thank you Yeah. On next question comes from Stephen The class and capital markets. Please go ahead.
Thank you good evening.
Okay, and I just think of question.
Hi, Mike.
Hi, and as well.
The question regarding the the 2021.
[noise] margin guidance for sort of flat guard slot margins year over year I know you didn't have the previous.
Margin guidance on the table, but can you can you just talk a little bit about if you looked at sort of where where consensus was on the margin for 2021 and versus where it is going to be on of flat year over year basis. Can you are you able to identify how much of that delta is related to the finance active purchase price of counting adjustment and how much of it is related to.
Investments and data, including the stretto down the platform.
Yeah. It Steven it's a bit of a combination of of of all of those factors, so definitely bringing on strategy.
As an early stage is going to have a small ah smaller and pack the.
Transaction, given that we're having to take that debt discount and it's actually it's not evenly weighted throughout the the quarters. It's it actually impacts you earlier and the year. So the biggest quarter of impact would be the queue too and then it tends to.
The trail off that will see most of the hitting this year.
And then it has some of the investments that we have been making and some of our key strategic initiatives such as data.
And and and a little bit on the on the debt side as well. So it's a combination of all of those factors.
Okay.
Okay. Okay.
And and when you think about I guess is the third of is it fair to characterize the majority of the impact and 2021 is the.
Purchase accounting adjustment.
My first question and and secondly.
<unk>.
How much the you expect the investments the trickle into 2022 or is the expectation of this will be isolated.
Or largely large the expense or or or recognize the 2021.
Yeah, the there'll be baked from the most part into this year.
Sort of on a run rate basis, I mean, and they'll probably they'll impact the little bit on of go forward basis, and the early part, but but next year.
<unk> C.
A resumption of of the growth and our margin.
So we should start seeing a back to a steady incline and margin.
As we as we move into 2022.
Okay. Okay. Okay. Thank you and then maybe just finally.
You talked about your new appraisal of management clients positively impacting the numbers as well as positive.
Like you mentioned 270, new oldest analytics clients can you just talk a little bit about where where of those clients are coming from is there any way to characterize the size of their geography or or anything like that.
Yeah. That's that's fair question I think well so first of all of the 270, new all the sandwiches customers those were all software customers the ones that I mentioned.
So first of off that some tackle care of software and and and the predominant.
And the predominant place that they're buying into is obviously are August enterprise on the cloud sweet.
These customers do tend to be on the smaller side of of the equation.
When we sit back and we have newer new customers.
They tend to be a number of seats up to 10 to 15 seats. So I think from the perspective, they're not going to be our largest customers, but in some cases, they're ones that we expect to grow over time, because and these are new new not necessarily of new portfolio.
We also expect.
We expect them to increase over time.
And it was from to be to be fair and he came from.
North American Europe.
Okay. That's that's great. Thank you.
Thank you Yeah. On next question comes from Boy Yang line from the <unk> capital markets. Please go ahead.
Hey, Thanks for taking my question first saw on I guess and.
And the type of the condemning on it.
He's still seeing COVID-19, having and Python sales sales bookings.
Bookings seem pretty strong Q1, do you think of it.
The sequel, his accelerates even more as in the past and then.
Oh.
From from your lips, the God's ears right.
[laughter] no I think I think list and we see we see strong pipelines developing and.
And I think that what we're going to stating.
At least from our all Samlet ex business for sure is we're expecting bookings to continue to be strong with us and and and what we can see.
And the near term and we're expecting them to have the strong bookings year of this year as to the acceleration of that.
Some of that is going to be based off of.
Maybe hopefully COVID-19 relaxing a little bit and.
Some of that is going to be on a new sales and marketing go to market strategies and some of that is going to be on a new what we put together on new products. So I.
R. R expect is that our expectation of that we're going to continue to wrap up our bookings this year and.
And what we're seeing with our pipelines right now our hope is that that will continue all the way through every quarter of this year.
Okay got it.
And then on property tax.
On the strongest tons of how the case elements of trust, so far and the us.
And once the into the queue to.
So.
We're starting to see we we're starting to feel better as the as the year goes on I mean, obviously, we saw a slowdown well.
One of the earlier question.
One of the earlier questions, where the was that you know as the U S opens up.
I think that there's still such a backlog.
Of cases for them to work through and the United States that works.
We're trying to be patient here, but we're starting to see we're starting to see already some returns the normal.
Okay got it thanks for taking my questions.
Thank you once again and if you had a question please press star and one.
Yeah. On next question comes from <unk> from staff O T and P. Please go ahead.
Hey, guys. Good evening. Thanks for taking my question I joined a bit late so I apologize if I have the time being repetitive.
Mike did you guys disclose how many enterprise customer and you converted this quarter.
The cloud and subscription versus looking the last quarter.
We disclose that we went from 14% contracted of 22%.
But the mix of that I mean, I know that you had a target or do you have a target or how many large enterprise numbers and do you want to get done this year.
Seem to recall it was late and.
And we're still we're still we're still we're still we're still on track and we didn't disclose any.
Anything new on the.
Okay. Okay.
And.
And just moving on the tax you mentioned and improved M&A environment and talks of of what can you tell us about what's caused on a prisoner you seen that on the evaluation fighter and following the seller combination any kind of call you and give us on the <unk>.
And be honest I think that the way that we're looking at it is is we're making our moves into digitizing that business and building out the foundational technical elements Deepak I think that the the view is that it's easier for us to take a look at those businesses and put them on our platforms.
And Additionally, I think that COVID-19. So that's the first thing that's internally and the second thing the put out there is that COVID-19 has started to put.
Put pressure on some smaller firms and as a result of they think there is an opportunity for us to.
Two.
Potentially take advantage of that and so that's what we're looking at those two factors gives us some focus at the market could be pretty good for us.
Okay Fantastic and then just on the the point of Octave and you said you put together a swat team to start looking across selling.
As you look to bring their debt products to North America, and you already had any preliminary discussions of the customers and and so you have a sense of.
Of what.
The sales cycles might be and what the requirements might be for the product to make the kind of north American ready at the stage and is that something the tongue of of course.
We've already had discussions with north American clients were already.
And conversations with them we.
We believe that the requirements that they have are pretty standard as compared to what.
And what we have and Europe, there might be and little work here and there, but our hope is that we'll start seeing.
Those opportunities being sold.
I would love to see those opportunities, starting and Q too, but we're forecasting Q3 and Q4.
Okay, and and and is there just the last follow up and that is there generally and is there an incumbent that you're replacing or you just replacing all the annual processes.
And what is the competitive landscape look like from that perspective.
It's old manual processes, and what I would call.
Services oriented solutions.
Okay. Okay I.
I guess I could keep asking you follow up but.
All part of the line [laughter].
Thank you.
This concludes the question and answer session I would now like to turn the conference back out of it can make the closing the Knox.
Thank you operator.
Everyone. We thank you for your attention today and for your interest is always and all of this group.
If anyone has the additional questions.
Please contact Miller directly and this concludes our question and answer session and thank you once again.
Thank you.
The <unk> today's conference call you May now disconnect. Your line. Thank you took the case of painting and how 'bout the second day.