Q1 2021 Ritchie Bros. Auctioneers Inc Earnings Call
Okay.
Okay.
Good morning, My name is Mike and I will be your conference operator today at this time I would like to welcome everyone to the Ritchie Brothers Auctioneers first quarter conference call.
All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there'll be a question and answer session.
If you would like to ask a question. During this time simply press Star then the number one on your telephone keypad.
If you'd like to withdraw your question press the pound Keith. Thank you I will now turn the call over to Mr. Samir retired Vice President of Investor Relations and marketing intelligence to open the conference call.
Mr. <unk> you may begin your conference.
Hello, and good morning, and thank you for joining us on today's call to discuss our first quarter 2021 results joining.
Joining me today are Andrew <unk>, our Chief Executive Officer, and Sharon Driscoll, our Chief Financial Officer, along with other members of the management team, who will be available for the Q&A portion of this call.
The following discussion will include forward looking statements comments that are not a statement of fact, including projections of future earnings revenue gross transaction value and other items are considered forward looking and involves risks and uncertainties.
Risks and uncertainties that could cause our actual financial and operating results to differ significantly from our forward looking statements are detailed in our FTC and Canadian Securities filings available on our Investor Relations website at Investor Day Ritchie Bros. Dot Com. We encourage you to review our earnings release and form 10-Q, which are available.
On our website as well as Edgar and SEDAR.
On this call we will discuss certain non-GAAP financial measures for the identification of non-GAAP financial measures. The most directly comparable GAAP financial measures and a reconciliation between the two see our earnings release and form 10-Q price.
The slides accompany our commentary today. These slides can be viewed through the life or recorded webcast or downloaded from our website. All figures discussed today are in U S dollars.
Unless otherwise indicated.
I'll now turn the call over to Anne Founder's day.
Yeah.
Thank you Samir and good.
Good morning to everyone joining our call today.
I would like to start the call by thanking and congratulating all our team members. It has been a difficult 12 months and our team continues to focus on the needs of our customers with an unwavering commitment to health and safety.
We continue to see the environment is dynamic and despite the continued uncertainty our omni channel platform continues to deliver strong outcomes for our customers and robust financial results for shareholders.
G. P V increased 11% service revenue increased 13% and adjusted operating income increased 31%.
These numbers underscore the leverage in our model and Sharon will walk you through the numbers shortly.
Let me talk a little bit about how the quarter progressed.
When you last heard from US in February we indicated we were seeing uncertainty in the environment.
Our published results for our Orlando auction clearly showed consignor, we're taking a wait and see approach.
In response to constrained supply conventional wisdom would have been to save cost and pulled back on marketing.
Instead, we doubled down on our commitment to drive the very best outcome for our customers and by increasing demand through higher levels of marketing spend.
For our buyers we continue to upgrade our digital experience and for our sellers, we continue to improve our digital marketing techniques and bundled regional events to bolster demand in dry used equipment pricing.
Our actions led to Orlando and Houston seeing strong improvements in pricing of used equipment compared to last year.
And we leveraged this strong pricing as a rallying cry for our sales organization to help consign hers game content.
We are very happy with the first quarter, However, I want to note that year over year comparisons.
We will become less meaningful as we get later into this year as COVID-19 heavily distorted our typical seasonality in 2020.
We continue to have an intense focus on the customer and fiercely dry all components within our control.
So we are able to cope with external headwinds and manage the volatility while benefiting when the environment changed.
Overall, the environment continues to be uneven with pockets of strength like residential offset by pockets of weakness like non residential construction and conditions are also varying significantly around the globe.
This dynamic is causing lumpiness of supply and the second quarter is off to a slower start.
Some can finals are busy others are waiting to see what happens.
Just continuously changing macro developments tiny size and scope of infrastructure stimulus.
Tax changes vaccine distribution we.
No there have been issues with equipment production, given the supply chain as well, while COVID-19 wages on in certain parts of the world.
The customer remains core to everything we do and we are executing in areas that are in our control our digital marketing team continues to deliver demand for our global buyer base with a 42% increase in bids per lot sold.
We believe this demand generation is helping to drive increases of used equipment pricing.
We also continue to drive strong operating leverage in the quarter with our COVID-19 protocols very much in place.
Last quarter, we talked about how we changed our organization to drive growth and execution at a global scale.
And this quarter, we continue to follow through on that commitment.
I am pleased to announce that Sam Wyant has accepted the position of international strategic account leadership to help bring the best practices. He led in North America to our international markets.
And now over to share.
Thank you Anne and good morning, everyone.
Overall, we are pleased with our total GDP growth of 11% year on year or 8% year on year on a constant currency basis.
Led by geographic strength in Canada and international.
All our channels contributed to growth.
<unk> by strong used equipment prices for the quarter compared to last year.
I would like to add some color around our GTD growth.
First G T be sold in the U S grew by only 2%. However, this growth was hampered by the lack of internationally sourced equipment at our Orlando auction this year.
Last year, a meaningful part of our G. T V in Orlando came from international Consignor.
That source of supply for 2021 with significantly reduced given continued COVID-19 driven challenges.
Looking at G. T V sourced only in the U S growth was in the high single digits.
Additionally, I would note that G. T V benefited approximately $8 million in the quarter. When we net the auction shifts compared to last year due to COVID-19 related changes to our auction calendar.
Combined with the headwind of the non repeats of the hour.
Las Vegas Con Expo event.
And a collector car event.
With these shifts total number of auction sale days increased 7% to 93 days in the quarter compared to 87 days last year and total lots sold increased 15% year on year.
As Anne noted as we go through 2021, the year on year comparisons are going to be difficult given the impact of COVID-19 on our auction calendar as well as international border restrictions that we experienced last year.
We think that looking at G. T V volume growth over Q1, 2019 base is a good comparison to assist investors with the filtering out of COVID-19 noise and provide a better sense of the underlying trends on.
On that basis, our GTA V grew eight five per cent.
Total service revenue grew 13% year on year and using 2019 as the basis for comparison for the same reasons as previously stated service revenue increased $19 five per cent.
We continue to think that service revenue growth is the best indicator of overall top line performance for our business model and most reflective of underlying business trends in the corner.
Our cautious tone going into the quarter was warranted given Orlando was tracking down $45 million or nearly 20% compared to its 2020 pre COVID-19 event results.
And we saw some of the Texas auction building slowly as we witnessed consignor hesitancy as they took a wait and see approach due to some of the aforementioned macro issues.
The exceptionally strong price results at Orlando answered some of those concerns and contributed to the 15% increase in lot growth process during the quarter.
As Anne noted the environment continues to be dynamic and we continue to see lumpiness as our two Q is off to a stone cold start in the U S. Similar to what we experienced at the beginning of Q1.
We saw an eight 4% reduction in cost of services due to our COVID-19 protocols and our pivot to a 100% online bidding on sales day.
It is important to note that as you think about the second quarter and the rest of the year, we will be cycling over our COVID-19 protocols and would not expect further decline in cost of services year on year.
These actions drove a strong operating leverage with a 31% increase in adjusted operating income and 19% increase in adjusted earnings per share.
Note that our cost of services are flat compared to first quarter 2019. Despite G. T V being up eight 5% in the same timeframe underscoring the leverage in our model.
I also want to specifically discuss acquisition related costs incurred in the quarter associated with the Rev services transaction.
As part of the acquisition the company incurred $2 9 million of acquisition related costs in the quarter.
Of which $2 5 million of those costs related to the amortization of share based continuing employment costs.
We continue to expect the amortization of share based continuing employment costs will total approximately $10 3 million in 2021.
These costs will not be adjusted out of our future earnings I think well will be recurring charges. However will be visible on this acquisition related cost line on the face of the statements.
Before I turn to auctions and marketplaces I would note that our other services segment revenue increased 24% year on year due to the $5 6 million full quarter contribution from Rev services and strong growth in Ritchie brothers financial services, partially offset by lower <unk>.
Hillary and logistics revenue.
Now onto auctions and marketplaces.
<unk> service revenue grew 10% with A&M service revenue as a percentage of total G. T V coming in at a solid $13 four per cent for the quarter.
It is important to note once again the contract mix can significantly skew total revenue growth depending on consigned, there's preference for how the deals are structured.
We are agnostic between service and the inventory oriented contracts and stand ready to serve our customers in any capacity they so choose.
That said inventory sales continued to be lumpy, increasing 39% driven by all regions.
Our international region faced easier comps given the COVID-19 driven border closures last year.
While the U S saw benefits from construction deals and non rolling stock sub planet coming back online.
Canada also saw benefits from two large construction deals.
Inventory rates increased 229 basis points to 12% compared to last year.
Our disciplined approach to at risk deals, particularly inventory contracts.
Bind with very strong used equipment prices drove these results and we are very pleased with overall rate performance during the quarter.
Overall, our SG&A increased 18% year on year, which does exceed our service revenue growth of 13% in the quarter.
SG&A growth was impacted by significantly stronger performance based incentive increases.
Severance foreign exchange impacts. The addition of Rev services employees.
And executive management changes that begin to comp fully in Q2 of 2021.
Excluding the bonus share based compensation and severance impacts in the quarter.
Our SG&A grew only $4 four per cent.
We think the $4 four per cent is a better basis of core SG&A growth.
Because in 2020, the uncertainty of the moment requires little to no incentive accrual versus our very strong performance results in our current quarter.
Although our travel advertising and promotion expense was down year on year. We anticipate these costs to start escalating from current levels given the pace of vaccine deployment, particularly in the U S.
We are a sales driven organization and our talented sales force and eager to get back on the road developing and cultivating customer relationships as it is becoming safer to do so.
Our balance sheet and liquidity remain in a very strong position with our leverage decreasing to 1.0 times on an adjusted net debt to trailing four quarter EBITDA basis.
We had very strong cash flow in the quarter and I am pleased to note that operating free cash flow to net income came in at 213% on a trailing four quarter basis, well ahead of our 100% evergreen target.
I would like to add my thanks to our dedicated employees for their continued focus on health and safety and continued to resolve to meet the needs of our customers. It has been an unprecedented 12 months with unique challenges, but I am very proud of the team with that let me turn the call back to Anne.
Thanks Sharon.
I am very pleased with the progress we are making on our new strategy to become the trusted global marketplace for insight services and transaction solutions for commercial assets let.
Let me run through the key developments by pillar in the last 90 days.
To help us drive long term value creation.
Customer experience.
As described last quarter, we now have a dedicated seller and buyer team who are responsible for delivering the best customer experience.
The seller team made enhancements to our regional events to drive more demand while the buyer team continues to make strides digitally with virtual yard walks and enhanced video was of equipment to build buyer confidence.
Employee experience.
We are engaging with our employees by asking them what is important to them for our ESG related social giving initiatives and we are in the process of Crowdsourcing a list of those ideas.
Modern architecture in the quarter, we completed the roadmap for our modern architecture and successfully launched our cloud based inspection micro Sir.
Inventory management system.
We are taking our first step in creating an industry wide equipment Vin like system and enhancing our equipment valuation tools between Ritchie brothers and routes services.
Lastly, accelerating growth.
We are seeing very positive signs with our satellite sites internationally with not only incremental G. T D like new buyers and sellers, we are encouraged by the Kpis.
And are now rolling new site into our third and fourth quarter plants.
We are in the early stages of the new sales coverage model in Texas and now that we have a team in place we are learning a lot about how it works and using these learnings to quickly refine our strategy.
Lastly, as you heard me indicate earlier.
We are rolling out strategic accounts globally.
Now turning to current trends and outlook I would like to share some considerations for the remainder of 2021.
Our priority remains unchanged number one the health and safety of our employees, while focusing on execution.
Our execution priorities are growth in a constrained environment.
<unk> the execution of our strategic pillars.
Keeping a tight control on costs.
Focusing on our true north improving our customers' experience.
We continue to see upside opportunity balanced by uncertainty and risks as well.
We see some consignor is beginning to focus on cash flow and inventory management to achieve their liquidity.
In 2020, we did not see the level of distress supply, we expected and think theres more to come here.
<unk> begin to apply more pressure to the FERC or delinquent accounts.
We are also watching for both timing and magnitude of government stimulus to begin driving infrastructure spend we also see potential to confine ores that are on the fence.
Start to act in terms of equipment disposals, and fleet realignment due to the strong equipment pricing environment.
All that said.
There remains risk as the implications of COVID-19 continues to cloud the outlook.
We have all heard from Oems in terms of various supply chain issues inhibiting their ability to produce equipment currently or later this year.
Although the U S have made remarkable progress on the vaccine global timetables for vaccine distribution continue to be murky and with newer strength of COVID-19. We think there is a risk of additional border restrictions.
Lastly, we continue to carefully monitor any potential changes in the sentiment, which could impact the equipment the ban and soften the current pricing environment as we progressed through the quarter.
All in all our tone and outlook remain cautiously optimistic.
With that operator, please open the line for questions.
At this time I would like to remind everyone in order to ask a question you will need to press star one on your telephone.
To withdraw your question press the pound key.
We will pause for a moment to compile the Q&A roster.
Your first question comes from Craig Kennison from Baird.
Yeah.
Hey, good morning. Thank you for taking my question really wanted to take a look at the second quarter and the balance of the year and get a sense for the number of auction sale days that you have in Q2 in particular as we tried to narrow down what the expectation should be for gross transaction value.
So Craig Hi, Sharon I can I can take that question.
I think our auction calendar is fairly fluid throughout the quarter.
What I would.
Project, what we sort of see today is that it's probably in a similar range as what we experienced in Q1, albeit I would point out that our current month anybody that scraping would certainly see a shift in the other direction as the COVID-19 related auction calendar shifts from last.
Year start to cycle over each other so particular at particularly L a and Montreal.
But I.
I would say use a similar kind of.
Outlook.
As was used as we resulted in for Q1.
That's helpful. Sharon, but just to be clear is similar in that you expect roughly 7% growth in the number of selling days or similar in terms of G. TV, what's the metric youre anchoring on.
The number of days.
Not the growth in the number but the actual number.
Yeah, the actual number of days.
And I'm, sorry to press, but what is how does that compare versus last year.
Shamir Guide me, if we've given that information out or if it's available on the website you could certainly see it in terms of calendar days that we have.
Presented on the website.
Okay, we'll take a look at that thank you so much I'll get back in the queue.
Your next question comes from Michael <unk> from Scotiabank.
Yes.
Hey, good morning insurance.
We're obviously reading a lot about the tight heavy equipment inventories in the U S.
Feels similar to 2017.
A lot of differences as well with COVID-19 and a shift to online and the completed integration of.
Our implied net but ritchie as U S. G. T V has proven a lot more resilient.
Two inventory tightness this cycle versus last can you comment on.
Some of the major differences that is driving the better performance.
Yeah, So Michael Hi, It's Dan I'll start and then Sharon can add some color having not been here in 2017.
So you know the team are really pride themselves on really looking at the world. The way you guys first not me, which is in our control and out of our control. So let's just use Q1 as the example.
We were coming into the quarter, we got very very clear signals that there would be equipment tightness.
Orlando, if you kind of take out the pricing effect ex post we were looking at in Orlando down about 30%.
And primarily driven by you know folks, saying, hey, listen I'm going to hold on I'm going to hold onto my equipment.
And Ah Con Expo that we knew wouldn't repeat the biggest con Expo. So we were staring down a fairly healthy year on year comp.
And so the team stood tall and said okay what.
Our true North our true North is driving the best outcome for our customers. So instead of kind of.
Saving cost pulling back on marketing kind of we'll call. It conventional wisdom no. We are going to double down we are going to drive demand. We are going to drive the best outcome. We can for whatever customers. We have we will then use that as a rallying cry to any customers that are sitting on the fence.
To bring them forward to say look look at the results. We're driving so it's like a shade of gray come on in a very very clean by kind of that.
That playbook, playing out almost verbatim the way that I describe it and.
And Super proud of the team for not flinching standing call understanding the things that we can drive which is really the demand side could then result in a great price for our customers. Our consigned cars, and then kind of bring them into the market that was kind of the.
The backdrop of how it played out.
Let me pause here Sharon anything to add these are the kind of 2017.
But I think the only difference I would point to as the demand environment is significantly different than 2017, because we are clearly seeing.
Robust demand across all set.
Sectors, whereas in 17, you were really relying on demand for products shifting.
Between.
Structure, sorry between oil and gas into construction and were really starting to see kind of all sectors demand is quite strong.
Your next question comes from Cherilyn Radbourne from TD Securities.
Yeah.
Thanks, very much and good morning.
So the company is always press released the results with large auctions and that's really all that investors have to go on to judge how the business is performing between quarters, which is <unk>.
Pretty important I think as we navigate an unusual cycle and for the last two quarters at least as large auctions haven't necessarily paint the full picture. So I'm just curious whether the company has given thought to do need to possibly disclose other metrics to provide better visibility to the investment community.
Yeah, Hi, Sharon I'm, sorry, Oh, perfect high share over to you okay.
Okay Sterling.
I will take that and I'll, let them and kind of close off.
I think one of the things that we have added to the press releases has been.
Regional sales. So I think we have added some additional color most recently with with the releases of those events you know cleared.
Clearly, we look at different opportunities and you know what we did incorporate into this Q is some additional metrics for comparison, albeit is based on quarter releases not not in quarter.
Updates.
But I think certainly.
We're open to feedback in terms of any information that investors or analysts might find helpful. We're continuing to look at ways that we can make that more.
More visible and helpful.
But also in the quarter.
It is.
Auctions are.
Very public so that information is out there on a on a regular basis anyway.
And I don't have anything else that you.
Yeah, just echoing Sharon's words on.
Our commitment is to.
Help you guys with looking at the business the way that we look at the business right and so for us.
Really the headline.
Is that we we want to get to a place where.
And you actually saw it in our Q.
Instead of focusing on live and online which is really an antiquated.
The trick when 100% of our transactions are on line.
We are focusing very much on what are the true metrics for sellers that we can be driving which is really kind of the demand generation and the pricing what are the metrics that we're driving for buyers.
Which is selection and confidence and how does that translate in transplants in the digital world to kind of.
Ultimately to bids per item, but how do you know how much people are clicking in how long they're spending on each page like all of these kind of digital metrics.
So.
Completely echo Sharon's words, we in that new mindset. We are we stand open and want to provide metrics to you guys to see the world that way since we're no longer pay putting all our exit in the basket of these large live events, but more putting all of our runs in the basket.
So driving the very best experience for our sellers and the very best experience for our buyers.
Your next question comes from Gary <unk> from Barrington Research.
Hey, good morning, everyone.
This statistic here bids per lot up 42% is pretty interesting to me, but I was wondering do you have that comped against Q1 19.
How does a great question, Gary I don't have it in front of me, but we will pull it while we're still in the Q&A section and so before we close out the call.
We will we will we will pull the staff.
Your next question comes from Larry de Maria from William Blair.
Hi, Thanks, Good morning, a couple.
Couple of quick questions here first to clarify the auction day.
I guess I want to go back to the website to look for.
Does that I assume that includes all the AG day auctions as well.
First part and then the second part can you just talk about the up four 4% core SG&A growth.
We should be modeling for Q.
Q2 through Q4 somewhere in that 4% 5% range.
One other comment or should we be looking at something different just to clarify that thank you.
Yeah, So Larry it's Sharon I'll handle both of the questions. So first the auction days, yes. It would include any AG day.
Selling as well.
So it would be inclusive of everything online as well as all the different formats.
And then the.
Discussion around SG&A was less a forward looking comment it was more just to put current quarter SG&A performance into context versus revenue growth.
So because there were significant puts and takes into that number. We just wanted to kind of unpack. It. So that you could look at it and then make determinations around.
How you would view it goes forward.
A couple of things I would note the <unk>.
FX pressure.
Just like we called out a normalization on GTA V because of FX. The counter to that is that our costs equally increase due to FX, particularly because of the head count.
And the administrative offices and and the sales teams and operations teams that we have in Canada as well as across the globe, particularly in the Netherlands, So that FX impact will carry on for future quarters.
Lee.
We are optimistic.
Mystic on our performance and hope that the bonus component also carries on.
But that's not a given and the.
The severance would also have been.
More of a one time event, there, albeit not unusual in the quarter. So therefore, it was not adjusted out and the increase in the rest of employees that also will carry on and be non comparable year on year SG&A ad.
As a reminder, if you'd like to ask a question press star one.
If you would like to go into queue for a follow up question. Please press star one.
Your next question comes from Michael Feniger from Bank of America.
Yes.
Hey, everyone. Thanks for.
Taking my questions just to be clear are you not returning to live in person auctions.
Hearing that some smaller re.
Your competitors are planning to open back up.
In person at.
At least in the U.
I'm curious if you guys are not planning to do that.
In 2021, and just to follow up I think we saw something about <unk>.
Implementation at a higher buyer fee share any way you could help us quantify that if that is the case.
And how to think about that for the remaining three quarters of the impact that could have on rate.
So its share in here why don't I start on the fee question and then I will pass the operations comment over to Anne.
I think a couple of things I would say that the C.
Fees are a journey around value that you provide to both sellers and buyers.
You know a constant determination of whether that fee structure.
Matches, the value that you're providing.
And so so clearly it is something that we do.
And we look at on a regular basis.
In terms of assisting with modeling.
We've done fee increases in the past I would say that the net.
This fee is not dissimilar to kind of the most recent b.
Uptick that we took them, but certainly we don't give.
We're looking estimates of what this would would do to our results, but I would certainly look to past fee increases as some indication of what this could.
Due to our results.
And Michael It's Ann let me just pick it up from there. So the way we look at fees like the last day conversations that we had with you guys and the market was more around the fee harmonization kind of bringing the last pieces of the iron Planet and Ritchie brothers integration on line.
But the way we're thinking about fees is.
At the end our cost continue to go up and.
And we look at our competitive environment on fees and judge ourselves against it.
It's a normal practice, that's what most industries most most people do on a regular basis call. It annual.
Just kind of review where are we where are we versus the market and is there.
No.
How do we stack up is there opportunity or candidly, but we need to go the other way.
So just expect us to be kind of a normal course of an evaluation cycle with no obvious.
Output, because it's really going to be kind of market driven if you will and that's what happened here, we saw small opportunities all kind of aligning more to general market practices.
With a backdrop of obviously as you've heard from everyone ever increasing cost base and us really dragging.
Really incredible solutions for customers.
Increased marketing.
Increased digital solutions.
We are proud to do them, the resulting in the exact output, which is a great pricing.
And the backdrop is.
Hum.
The obviously our ability to cover some of that with this price increase.
And then for your first question can you just I want to make sure I answer it as intended can you just restate what is it what is it you're trying to understand about the operations and the loss.
Just one moment please.
The online I'm curious if there will be with vaccinations, increasing in the U S. We are hearing some smaller players are having people back at auction houses of in person I'm curious how you guys are viewing that right now as you guys have shifted during <unk>.
But with the safety protocols, if there's any shifting back with with the reopening thats underway, yet and so we have really gone to great lengths kudos to our operations team led by John Kessler, Our Chief operating officer to Deconstruct single day and really younger.
Stand again with our true north being the best experience for sellers and then the best experience for buyers. So, let's just kind of get on this journey together so for sellers, what sellers really need by and large is an ability to easily drop their equipment. So that Ritchie brothers can take care of custody and control right.
<unk> expected praised the marketed sell it and get them the most money.
And so we are very clear in those kpis and driving to do exactly that to get that equipment showcase the right way.
And kind of drive demand for the higher.
Even before COVID-19, 70% of the actual auction day transactions were happening online anyway.
So we really dug deep into what is it the buyers in.
And first and foremost they need selection. So obviously size matters greatly and you saw us taking steps in combining regional events.
Into kind of more mega events, if you will to give that selection to buyers.
By our results in the concepts and so theres two ways to gain that confidence right. One is in person and we've allowed even during COVID-19.
Albeit with scheduling and social distancing buyers to come in kind of kick the tires of the equipment, they're making big bets.
We literally have.
People come to Edmonton last week, thousands of people come to Orlando.
In a COVID-19 safe environment at the same time, we're leaning heavily on digital tools right because again, even before COVID-19 70 per cent of the buyers didn't come. So we are doing videos I think you've heard us say last time, we talked we broke Youtube.
With the number of video uploads, we did but we do our ironclad inspections with videos, we even launched a concierge walk through service of our yards so that for customers that wanted to.
See what was out there.
Our very knowledgeable staff that the yard can take them through it. So it's very much with an eye towards that when it's safe to do so we're going to continue those practices are really driving what is it the buyers want.
Need in order to make their selections and what are sellers need and we will we will take our cues from there but for.
For the key activities that are happening, we're bringing them in one digital.
Formats, and allowing the physical to continue while the bidding is.
It went from 70% to 100% online.
And before we take the next question we have an answer.
That since 2019, so the bids per lot sold since Q1 2021.
42% they are up about 50%.
Since 19, because we were almost flat.
Q1, 2020, we had a very turbulent startup COVID-19. If you will in the back half of Q1 of 2020.
Hmm.
Believe that answered your question Michael.
Your next question comes from Brian <unk> from Raymond James.
Thanks, Good morning, everybody.
Just hoping to get more color on the alliance formed with Gordon brothers, what can we expect to see from that partnership.
Hello, Brian It's Dan let me start.
We'll take a question.
So we are very proud with our partnership with Gordon Brothers, we've partnered with them for some time, it's not new we did however, formalize it in our Australia region.
And there it's really targeted at the kind of.
Bankruptcy and insolvency space. So we're bringing the two best elements of the companies were.
Gordon Brothers really focuses on bankruptcy and solvency, we focus on the disposition of those assets when they come through we have formalized that partnership.
And are very very excited to bring that to life.
This is a tried and true partner for us all around the world.
<unk> worked together in other regions.
And in Australia, we have just strengthen that partnership and kind of made the basis of the way we go to market in that region in the bankruptcy and insolvency space.
And your next question comes from Michael Feniger from Bank of America.
Hey, guys, sorry, just just a follow up I'm curious and if you guys can give any color on IMS inventory manage it like anything you can provide from the beginning of the year in terms of.
Fleet uptake.
The signing of any kpis around that.
So we can have an idea of how that that.
That initiative and strategies tracking.
Yeah. So Michael we're still committed to giving you guys kpis kind of on a regular basis and we're working on what those should be.
So really the way to think about I am mass is the underlying functionality and then kind of the usage. So in terms of usage, we're looking at a metric of unique monthly users.
And looking at that metric on a rolling basis looking at on an on a year on year.
So kind of on a rolling basis.
We're up.
Q4 were up just a little bit over 10% and unique users.
But candidly the bigger story and I am asked since the acquisition of Rouse, we're really focusing on the fundamentals so Ralph had pricing tools in the marketplace about the facto leader in kind of third party agnostic pricing information Ritchie brothers, we went to great lengths and I wish we'll publish our valuation tool.
So we spent a great part of Q1 really bringing the methodologies together to ensure we are giving customers. The very best the greatest the latest real time information at the same time, we've spoken before about the need to kind of get a point of view on so thats, where buyers theres a transparency tool.
Quitman, so getting have been like a common way for customers to be able to understand equipment and access it.
I'll spend a great deal of Q1, putting those plans in place so really as we take a look at IMS think about kind of the fundamentals of biomass.
On the pricing.
Kind of cloud solution, if you will the Vin system on the one side and then on the other side, even while we get those fundamentals in place continuing to drive.
Unique users and monitoring how there.
Using the data.
And and to inform us on what are the value added pieces to keep adding to the equation.
There are no further questions at this time I will turn the call back over to the presenters.
Yeah.
Thank you so much for joining us I'm going to close it out because I believe severe dropped off.
The call dropped on him so.
So how about the Suzanne and I will thank everyone on behalf of some of your share in and I and the executive leadership team and once again, thank our entire team member base for driving an incredible quarter, but really being there for our customers and each other every step of the way.
So very much.
This.
Today's conference call. Thank you for participating you may now disconnect.
Okay.
[music].
Yes.
Okay.
Yes.
[music].
Total revenue.
[music].
Yeah.
Yeah.
Sure.
Yeah.
Uh huh.
Thanks.
Yeah.
[music].
Yes.
Okay.
Yes.
Okay.
Yeah.
[music].
Hum.
[music].
Yes.
Yes.
Yeah.
Great.
[music].
Okay.
Yeah.
[music].
Hum.
[music].
Okay.
Okay.
The growth.
Okay.
[music].
Okay.
No.
Okay.
[music].
Okay.
And the growth.
Okay.
[music].
Yes.
[music].
Yes.
[music].