Q2 2021 LiveVox Holdings Inc Earnings Call
Thank you for standing by this is the conference operator.
Welcome to the live box holdings second quarter, 2021 earnings call.
As a reminder, all participants are in listen only mode and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions.
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I would now like to turn the conference over to elective watch head of IR. Please go ahead.
Good afternoon, and thank you for your participation today with me on the call are Louisa Me, Chief Executive Officer, and co founder of Lifelock, and Greg Clevenger Executive Vice President and Chief Financial Officer before we get started I would like to remind you of the company's Safe Harbor language comments made during this conference call and webcast.
And any other company document contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties.
Any statement that refers to expectations projections or other characterizations of future events, including financial projections or future market conditions is a forward looking statements. The company's actual future results could differ materially from those expressed in such forward looking statements for any reason, including those listed in its SEC filings.
Lightbox assumes no obligation to update any forward looking statements. Please also note that past performance or market information is not a guarantee of future results certain information discussed on this conference call was derived from third party sources and has not been independently verified and accordingly, the company makes no representation.
Or warranty in respect of this information.
During this conference call. The company May discuss non-GAAP financial measures as defined by SEC regulation G. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP financial measure can be found in the earnings press release, which is available on the Investor Relations website www investors Dot Lightbox dotcom.
A recorded replay of this call it together with related materials will be available on our Investor Relations website investors don't like docs Dot com.
Light boxes, earning release and 10-Q are also available on the company's website.
With that I'll turn the call over to Lee to begin.
Good afternoon, everyone and thank you for joining US welcome to ally box, earning call our first as a public company.
My name is Louis semi and I am the CEO and co founder of <unk>. This moment has been 20 years in the making and we are very excited with how all of the pieces have come together to create a tremendous opportunity for la box and our shareholders.
Most of you know la box as a next generation cloud contact center platform that seamlessly integrate digital and voice communications.
Our M AI and workforce optimization to help enterprises drive customer service performance.
This year, our platform will facilitate more than 14 billion interactions on behalf of our customers.
Simply put our platform is more integrated than our competitors as digital engagement increasingly becomes the new storefront toward the enterprise lie boxes unique capabilities offer seamless out of the box integration between online touch points and contact center agents, providing our clients with a material advantage.
And growing revenue and improving customer experience not only is our platform primed and ready, but the market is as well Mckinsey estimates. The overall contact center software market is $27 billion currently and will grow to 83 billion over the next 10.
In years, our market focus the cloud contact center software space is currently only 10% 15% of the 27 billion of annual expense and has gained significant growth momentum as more enterprises look to adopt digital and AI capabilities by 2030 <unk>.
Do you expect the cloud to be nearly 100% of the market, providing a substantial macro tailwind for us to accelerate our revenue growth in terms of our financial results for the quarter. We achieved total revenue of $28.9 million up 28% year over year. This strong performance.
<unk> was fueled by the strength in our contract revenue, which grew 34% year over year to a record of $22.4 million in contract revenue is on target to be approximately $90 million for the full year, 2021, which would be approximately 25% growth over last year.
As a reminder, given the way our contract revenue works. This number is effectively locked in for the remainder of the year.
Although our contract revenue was strong our excess usage revenue is recovering more slowly than expected as COVID-19 related government consumer stimulus programs have reduced non contracted utilization on our platform.
Those programs have lasted longer and the recovery of our access usage revenue is taking longer than we had initially predicted to return to a normal pre COVID-19 level. Although these COVID-19 headwinds continue to slow our excess usage revenue recovery we have.
Multiple vectors for growing our contract driver, which I will review now one of our primary purposes for going public is to provide the company with increased resources to capitalize on this generational opportunity in the cloud contact center space.
With our entry into the public markets, we have added more than $100 million to our balance sheet and we are well positioned to increase our growth investment in particular, our go to market capacity, we are accelerating our investments in growth and generating more leads for our pipeline hiring more sales.
Jack is to drive bookings signing up more distribution partners to increase our market reach adding more features to increase our revenue per client and shrinking our time to implement new customers and products.
Even though we have just started many of these investments were already seeing promising results. This includes adding approximately 35% more resources to sales and marketing Jeff since the beginning of the year building a channel team from scratch.
To focus on partners, who by the way have already signed agreements with terrorists and Intel assist both of whom are major channel organization and this team is also in discussions to add several additional partners in the near future.
We are also seeing 10% of our new sales bookings in the second quarter from the agent channel versus zero zero in the first quarter.
And we are building relations with third party analysts for example, just a couple of weeks ago Forrester published a total economic impact study on the benefits of our platform powered by Omnichannel Communications and purpose built CRM. The results were very positive highlighted by a 220.
9% return on investment based on Foresters direct interviews with several of our customers I encourage you to take a look at the study which is available on our website and.
In addition to our sales and marketing investments the second quarter was another incredible milestone for la box in terms of product innovation setting the stage for us to continue to increase our revenue per customer and increase our speed of implementation. We released over 60 product features starting the quarter with a focus on AI self service.
Contact center compliance as well as ease of use for example in Q2, we launched our enhanced chat bot builder, which helps clients to optimize messaging conversations and improve customer self service out of the box. The tool comes pre integrated with our CRM suite and WP capabilities allows clients to eat.
Seasonally launched box within minutes. Additionally, we have enhanced our AI virtual agent product by embedding real time monitoring and quality management tools, which enhance feedback loops for clients, who are better able to optimize virtual agents in minutes rather than months or contact center CRM platform continues.
Is to be focused on helping agents to optimize every customer interaction with our AI virtual agents and bought library clients can seamlessly integrate third party platforms automate processes prevent errors and boost agent productivity delivering better customer experience and greater efficiency improvements in our staff.
And our delivery process, including out of the box solution enables us to onboard new customers, 25% faster than just where we were at the beginning of the year. These pre configured modules contain contact center industry best practice configuration across our platform with automated training content available to help expert.
<unk> platform optimization and in terms of the new star shaken regulations, we have taken the necessary steps to ensure that all our clients continue to abide by the new set of FCC standards, which impact contact centers with the call attestation and authentication framework in place as part of our latest.
Release clients can be assured that all their calls are properly delivered and received through the carrier networks and that consumers are provided with proper notifications per the new regulations with that I'll now turn it over to Greg to cover our financials in more detail.
Thanks, Louis and good afternoon, everyone I want to start first by reviewing various pieces of our revenue with you to make sure. We're all on the same page about how the revenue components that we talked to you about relate to the revenue components that you hear other SaaS software and <unk> software providers talk about.
Like most SaaS software companies are revenue is comprised of recurring subscription revenue and nonrecurring professional services revenue, we've had very little nonrecurring professional services revenue historically, 1% to 2% in fact, so the vast vast majority of our revenue is recurring subscription revenue 98% to 99%.
Quickly and like other CCAR software providers are subscription revenue is comprised of usage revenue under contract, which we call contract revenue and revenue that we bill customers for usage above the minimum value that they've committed to us under contract, which we call excess usage revenue.
The contract revenue in the excess usage revenue are based upon usage of some form for example minutes of voice number of two way messages hours of speech analytic processing time seat licenses of our software products like CRM and <unk> and other usage based metrics. It's all usage of some sort just some falls under the.
A minimum contract value and some is in excess of the minimums as described earlier.
We kept all the relationship between our total revenue in our contract revenue the usage multiplier, which is simply total revenue divided by contract revenue.
Prior to the COVID-19 pandemic the usage multiplier was fairly constant each quarter, averaging 155 with little quarter over quarter variability in fact less than 2% variance in each quarter going back to even before the beginning of 2019.
So with all that as a backdrop I'll now walk you through our results for the quarter.
I'll start with our second quarter revenue results and a reminder, that all non-GAAP financial figures that I discuss are reconciled in the Investor Relations section.
On our website.
Our total revenue for the second quarter was $28.9 million, 28% higher than the second quarter of last year and 3% higher than the first quarter of 2021 underpinned by continued strength in our contract revenue.
Like I mentioned earlier, our total revenue was more than 98% subscription revenue and less than 2% professional services revenue consistent with the historical split in this quarter.
The primary component of our subscription revenue or contract revenue was $22.4 million in the second quarter, which was 34% higher than the second quarter of last year and 8% higher than the first quarter of 2021 Contra.
Contract revenue remained strong and predictable underpinned by strong new sales bookings and our continued healthy net revenue retention, which improved to 105% for the quarter versus 99% last quarter.
Remember net revenue retention is a trailing metric measuring the recurring subscription revenue from customers in the last four quarters versus the recurring subscription revenue from those same customers in the four quarters of the prior period, assuming only customers, which had recurring revenue in that prior period four quarters.
We believe that this metric will continue to improve for the next several quarters as fewer of the pre pandemic quarters are captured in the calculation.
And I'll remind you that our pre pandemic net revenue retention was in the 114% to 120% range in the 10 consecutive quarters, leading up to the beginning of the pandemic.
Our new sales bookings, which are new added revenue commitments under contract and are driving our strong contract revenue growth and are confident outlook in that regard were up 37% in the first half of this year versus the same period last year, which was impacted in the first quarter by the onset of the pandemic.
We are seeing strong momentum in our pipeline, which we believe will drive sustainable growth in our contract revenue going forward.
The average number of products signed up for by new logos in the quarter was five four on average up from $3 nine in the second quarter of last year and one three in the second quarter of 2019.
As Louis described earlier, our new products are clearly in demand by our new customers and are helping us to drive new business, both through our direct sales channel and the agent channel that we launched earlier. This year. These new products also represent new and exciting white space opportunities with our existing customers, giving us the ability to bring more products to our existing customer base and <unk>.
Our expand sales motion.
The other component of our subscription revenue our excess usage revenue totaled $6.5 million for the second quarter, 12% higher year over year, but 9% lower than the first quarter of 2021.
The usage multiplier for the second quarter, which as I noted before as total revenue divided by contract revenue was $1. Two nine this quarter lower than the 135, we achieved in the second quarter of last year and last quarter at significantly lower than the relatively steady 155 average that we experienced in the period, leading up to the beginning of the panel.
<unk> in fact, a 1.29 usage multiplier is the lowest quarterly level that we have ever experienced.
While we have been expecting the impact of the direct financial stimulus that consumers have received over the course of the pandemic to abate and allow the consumer credit markets to return to a more normal operating cadence.
<unk> delinquency rates have remained low and declining since the beginning of the pandemic. According to current data from the New York Federal Reserve, reflecting an uptake in forbearance as provided by both the cares Act and voluntarily offered by lenders. The forbearance is coupled with the direct financial stimulus and extended and enhanced unemployment benefits.
Have allowed consumers to redirect their cash flow from rent abatements, and lower cost mortgage and student loan debt and forbearance towards paying down higher cost credit card debt, thus actively reducing those outstanding balances at allowing our collections customers to achieve their collections targets with less servicing activity than a normal marketing.
Market conditions. This has directly impacted call activity and the collections vertical that drove 37% of our revenue last year. However.
However, we are seeing recent signs in our customers activity to point towards increased collections activity in the coming months and quarters and recently released data again from the New York Federal Reserve indicates that the most recent measure of the number of new credit inquiries, which is an indicator of consumer credit demand showed nearly a four person.
Increase in the second quarter over the previous quarter after having declined since the second quarter of 2020.
Notwithstanding that note of optimism for the collections vertical it remains very difficult for us to predict when this will translate into increased usage.
I will address what the implications of this unpredictability on our excess usage revenue has on our forward looking guidance in a moment and why we believe it's temporary.
Our adjusted gross margin for the second quarter was 62% after adjusting out nearly $10 million from our cost of service for cash and equity bonuses related to the spec transaction that were earned by individuals whose departments roll up into that cost line.
This compares to 62% in the second quarter of last year, and 64% last quarter.
Our adjusted EBITDA for the quarter was a negative $2.6 million versus a loss of 300000 in the second quarter of last year, and 200000 last quarter, reflecting the aggressive investments, we're making across the business to capitalize on the vast and growing <unk> market opportunity, which Louis described earlier in the call.
Despite our excess usage revenue not performing as we expected. This quarter, we are not adjusting our spending accordingly, we are continuing to lean heavily into the opportunity and our adjusted EBITDA loss reflects that aggressive spending posture this quarter.
Our earnings per share for the quarter were a negative $1.12 on both basic and diluted basis significantly impacted by the $69 million of stock based compensation and long term equity incentive bonus payouts triggered by the closing of the spec transaction.
Our capex for the quarter totaled $300000, which is a relatively normal level for this business, reflecting the fact that we are able to successfully leverage the public cloud and don't have the need for ongoing capex to support our own data centers like many other <unk> software providers.
We also ended the quarter with $55 million of debt and $161 million of cash. However, after adjusting out certain non standard non operating payables such as the cash portion of bonuses to be paid to current and former employees as a result of the spansion spec transaction and spec related transaction expenses.
That were unpaid as of June 30th pro forma cash for the business combination at the end of the quarter was $125 million.
Finally, our forward looking guidance for.
For the third quarter, we expect our contract revenue to land between 22, and a half and $23 million, which would be 23% to 26% higher than the third quarter of last year. We expect our total revenue for the third quarter to be between 29 and $30 million assuming that the usage multiplier remains at its current pandemic.
Impacted level and the $1 two nine range versus the pre pandemic level of 155.
While we continue to believe that some of the signs that we're seeing in the credit markets point towards a recovery path in this metric and in our excess usage revenue in particular, there are just too many unknowns out there today to stake our near term guidance on a set recovery path to normal that we have no control over including the impact of the Delta variant and any future variance on overall.
All economic activity and any future stimulus of any form that the federal and state governments might extend to consumers.
We're taking the same posture with respect to our 2021 full year revenue guidance as well for the full year, we're guiding to $117 million to $119 million in total revenue underpinned by 89, 5% to $95 million of contract revenue, which is consistent with the indications we've given in the past with respect to contract.
Revenue, which remains strong and much more predictable.
At these ranges of outcomes are year over year growth in total revenue would be 14% to 16% in the year over year growth in contract revenue would be 24% to 26%.
While we're not giving formal guidance with respect to 2022 revenue at this point given the strength of our subscription business model, we have strong visibility into contract revenue growth and are able to reaffirm.
Year over year growth rate and contract revenue of 25% clearly with strong contract revenue growth as our base a recovery towards a more normal economic environment will provide a significant tailwind for us when it comes and provide a substantial uplift in our total revenue growth rate when it does happen and.
With that I'll turn it back over to Louis to wrap up.
Thanks, Craig before we go to Q&A I'd like to focus your attention on what I believe are the key takeaways from this call.
Most importantly, our 2021 contract revenue has a very high degree of visibility and has a clear path to grow 24% to 26% this year.
We're making very strong progress on our go to market investments, which should result in contract revenue growth of at least 25% in 2022 as well.
We're currently executing on multiple vectors to further accelerate our future growth, including doubling our sales and marketing head count accelerating investment in our channel partner programs and driving continued product innovation I have never been more excited about our products for opportunities than I am right now and I believe.
That we are perfectly positioned to benefit from a generational shift of the contact center software market from on premise to the cloud.
And lastly, I want you all to know that my box management incentives are solidly aligned with our shareholders.
All executives at the vice president level and above have at least 50% of their post public equity incentive compensation in the form of performance stock units that only best when certain stock price thresholds have been met from $12.15 to $17.50 a share.
With that I want to thank all of you for attending our first conference call as a public company and I, especially want to thank all our employees and customers who have been with US along this journey. So far now operator will you. Please provide instructions for Q&A.
Absolutely we will now begin the question and answer his question to join the question queue.
Press Star then one on your telephone keypad.
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The first question comes from Mike Latimore with Northland Capital markets. Please go ahead.
Excellent. Thanks, a lot yes, congratulations on the results first earnings call here.
It sounds like bookings were strong can you give a little more color into the bookings themselves.
The types of products.
Really seem to have traction in the quarter and maybe a little color on new customers versus up sell.
Okay.
Yes.
Mike before Louis is going to answer that but before I want to make a correction to I had a typo in my script, just so everyone knows.
EPS was negative dollar and eight cents a share this quarter not a net negative dollar 12, just wanted to point that out and then.
We will take your question Greg.
Thanks, Mike.
Yes, the bookings the bookings, where we're definitely strong this quarter and.
Customers are looking more and more for I would say our full platform and I think you heard that and in some of the stats that Greg provided and the number of new applications that are new customers are adopting a tough.
It's up it's up substantially and I think and I think the bigger theme here is that.
Enterprises in general really want to add.
Digital and they want to add AI capabilities to a lot of their workflows and so when <unk> comes in with its more integrated suite that makes that easier to do frankly, they're just they're taken us up on that and that's why you see them gravitating to more of a platform by which includes a greater number.
<unk> features as Greg pointed out.
Okay, Great and I think I heard you say that 10% of the bookings in the quarter came from the channel partners Zara.
Yes, that's correct.
The channel has I would say.
Performed very well.
We are.
We're excited about the potential there.
The receptivity that we've gotten from the channel partners are are strong.
They see us as a very helpful new partner for them and so we've just started that so that has that has plenty of room to run.
Yes, 10%.
Number for a few months.
And then you talked a little bit about just the fed reserve statistics, but can you talk about what youre seeing in terms of your own usage patterns, maybe over the last month or two or are you also seeing kind of stability and kind of usage.
Last month or two.
I mean, we are seeing.
Usage tick up.
It's just gone slower than we anticipated and of course, it's not hard to trace that back to the spike in.
Cases from the Delta variant and then the extension of stimulus programs from.
From from the government.
Yes, okay great.
Great. Thanks, a lot good luck.
Thanks, Mike.
The next question comes from James Fish with Piper Sandler. Please go ahead.
Hey, guys well put together.
Repaired remarks here I think you guys laid out here that it's really on the usage side and that's really out of your hands more on the government and congrats on completing the deal as well maybe just to start it off.
The comments made about the differentiation you know a big differentiator for you guys is the integration consolidation capabilities.
What are you seeing with your overall customers looking to add agents versus move towards more of the bot driven.
Just with speech IQ and second how is the attached this quarter of WSI and CRM.
Yeah.
W. A foe and the CRM attach rates.
I mean that that remained strong and I would say that the agent population is still growing pretty well I think that.
Right now.
<unk> is something that people really want to use and they are using and really a variety of use cases, but it's still on I would say a rather small scale and much of it is still really in the I would say the proof of concept phase and they are still determining how.
Aggressively there they are going to be enrolling it out I mean, everybody wants to try it everybody wants to have it and they're really now just kind of wrapping their hands around just how how aggressively they want to roll it out at this moment.
Makes sense.
Appreciate the details Greg on the guide I mean.
I think top of mind here after hours as you know.
How are you guys thinking for the second half part in kind of a 2022 contract revenue target in terms of when are you guys kind of embedding that collections vertical usage to really return at this point is it does it kind of that January timeframe I think it was the latest that it's gone through on the government.
And I guess is there a difference and the usage multiplier today in collections versus engagement any way to quantify that.
But we don't actually quantify the difference in the multiplier across.
The customer use case segments.
We don't do that but from the from the perspective of <unk>.
Going forward, we've had we've had months where it feels like we have momentum on the upside and then it kind of rolls over the next months and that's been a little bit of a pattern in the last few months and while we do see.
Not just positive signs in the actual usage, but statistics from the outside that are kind of bearing out some of the underpinnings of what could be a real recovery in the collection space. Some of the fed statistics that I cited those are new.
There's been a decline in credit card origination from the very beginning of the pandemic to have that being.
A pickup or indications of a pickup just tell you that that coupled with with.
Not all stimulus is going away and have obviously some of it is being extended.
But.
The indications are that there are more credit card applications being made and taken up in terms of origination and that will translate into more collections.
60 days are now 90 days from now whenever when things start to go sour and a portion of those.
Credit card so we do.
<unk> that we're on a path to recovery, but we have seen ups and downs over this period of time that makes it just really hard for us to stick a stake in the ground on something Thats really hard for us to predict and say that it's going to improve.
Improve in any mark fashion, which is why we're we're saying look we are in a range and we have been over the past few months and we're going to assume given everything thats going on in the world.
That impact this that we're just going to stay in that range and we hope there is more upside to that than downside.
And as I said, we have indications.
For us to believe that that there is a lot more upside than downside in that but.
And part of the reason that we're taking that posture as jets is with so much momentum in our bookings and in our contracted revenue, we really just want to focus in on that and and stay aggressive in growing that because it's such an enormous potential for us.
Got it if I can sneak in one more maybe.
Way to quantify if we're talking bookings strength here I think we were given.
Got it.
<unk> was around $100 million of $97 million.
Way too.
Disclose that metric right now.
Yes.
The I think it's 144 I want to say, it's 144, so it has gone up.
Substantially from where it was in a lot of that is around I'm, sorry, $1.42, I'm being corrected the key is going to be out here.
Next hour or so you'll see it but.
Yes.
We've had a big concerted effort to instead.
Instead of allowing auto renew contracts to auto renew for a year to be proactive and locking in longer term contracts. So as as customers are coming up for renewals were locking them into much longer contracts and so it's kind of hard to tease out what what's from from longer term renewals and whats from new bookings.
And as we have done consistently in the past, we're not going to talk about bookings necessarily and set expectations for what bookings might be because of the.
The lumpy nature of them, but but we are we are very satisfied with where we are in terms of bookings and relative to the investments that we're making in and feel like we've got a lot of traction there and that gives us the confidence in the contracted numbers at least that we're laying out there for you.
No that's a great number Greg helpful guys. Thanks.
Thank you. Thank you.
The next question comes from Tom Roderick with Stifel. Please go ahead.
Yes, Great Hi, Louise Hi, Greg Hi, <unk>. Thanks for taking my questions. So I guess I'll kind of bring it back to your opening comments and ask how it informs the way you kind of want to run the business, but if we think about the secular tailwind and the committed revenues and new bookings that all seems to be going.
In a remarkably solid fashion and then there is the part of the business, that's a little bit out of your control, which we.
Certainly it would be on the collection side and some of the usage multiplier associated with that.
So I guess the question is how do you sort of manage the right cost structure of the business. How do you manage your go to market, while you've got one one secular tailwind and maybe some near term pandemic related headwinds taking place there is a little bit of a push and Paul you've got obviously decided how to right size the business and thanks for the long term, but love to hear you.
Philosophy on that.
Yes look.
The the excess usage is going to recover it's not really a question.
If it's a question of when but as far as how we're approaching the business. We are simply pulling that out of the equation and just focusing the operations around bookings and around contracted revenue and investing as aggressive as Lee as we can to drive those numbers and again, we just.
We love our pathway there we've got great momentum on it.
And we're talking to you about the results that we've had to date, but.
We've dramatically increased our investments.
Just starting this year and those haven't really played out in our bookings and contracted numbers yet.
Small impact there, but the bulk of that impact really comes.
Later in the year and into 'twenty, two where it really drives our numbers and so that's that's our focus and we're thinking about our business in terms of bookings and in terms of contracted revenue and when that excess usage.
Returned that'll be great and that'll be gravy on top but that's just not our focus.
Understood No. That's helpful and then bigger picture the product portfolio is just so much more expansive than it was four or five years ago, a couple of years ago, and certainly the picture from W. <unk> and CRM and Omnichannel in messaging and so much your customers can do I'd love to understand.
A little bit better how that impacts whether it's inbound or outbound the way that your customers are using you I know you I don't think <unk> broken out that mix of inbound versus outbound communications.
But would love to sort of understand thematic Lee how that trend might be shifting and if the shift is more towards say inbound does that create heightened attach rate on some of these newer features or is it really across the board and yell at perhaps AI is a good way to talk about that that impacts both inbound and outbound on the call front, but but love to hear your take on that thanks.
Yes look we're more inbound then we.
And then we've been historically, that's a natural outgrowth of adding a lot more feature capability, but I'll say that.
In general what customers are looking to do is really engage with the consumers and so I think the framework that we talk about with our customers is really more of a blended framework than it is an inbound or outbound framework.
One of the things that customers really use our platform for.
Is four event triggers so because we have a very rich set of API and a very rich set of features you can have an event.
Now that would trigger an SMS you could have an event that would trigger an E. Mail you could have an event that would trigger a phone call you could have those connected driven by inbound event or driven by a point in time are driven by another data element and so it's really more I would say, it's not so much about shifting from outbound to inbound.
<unk> and more so as just facilitating kind of a blended full.
Engagement model that does that that makes sense.
Yeah, that's super helpful. I appreciate the commentary and congratulations on your on your first quarter out of the gates.
Ill jump back in the queue. Thank you.
Thank you Tom Thank you.
Once again, if you have a question. Please press Star then one.
The next question comes from Joseph <unk> with Benchmark Company. Please go ahead.
Okay.
Hey, guys. This is Joe <unk> on for Mark Chapelle, Thanks for taking my questions.
So just to start what products or modules with.
Wood products or modules do your sales reps typically lead with when pursuing new customers.
Well, we have five core land bundles.
They include a speech analytics land bundle.
A two way messaging land bundle.
Outbound.
And blended Omnichannel bundle.
Hey.
AI virtual agent bundle.
A inbound.
Agent experience bundle and so those those five bundles are or how we how we kind of opened the conversation with customers with.
Kind of our land.
Part of our sales process.
Okay.
Alright awesome. Thank you for the color.
I guess what size contact centers are your solutions seeing the most traction and during the past few quarters.
We're doing really well with the with the enterprise segment.
And.
In particular.
Middle market and larger enterprises kind of are.
Are most attracted to kind of.
Taking their digital engagement and their AI capabilities to the next level. So that's really where our products are most appealing right now.
That's great. Thank you and then just to finish off.
Sure Greg with respect to your historical usage multiplier. What gives you guys. The confidence that that uses multiple io will revert back to that 155 X pre COVID-19 level once the pandemic subsides.
Well, we just we think that that's a.
A normal operating level for the kind of customers that we target in terms of the amount that they prefer to have under contract versus <unk>.
<unk> on top we saw a lot of stability in that over over a long period of time.
Prior to the pandemic and we.
Don't know of any any reason why we shouldnt be at that same level once things get back to a normal kind of credit market cadence and so that is kind of the level that we're expecting we're going to get to at some point.
Okay, great very helpful. Thanks, again for taking my questions and congrats on the first quarter. Thanks, guys.
Thank you. Thank you.
This concludes the question and answer session and today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.
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