Q2 2021 Inseego Corp Earnings Call
Hello, and welcome to in CECO Corp, second quarter 2021 financial results Conference call. Please note. Today's event is being recorded all participants will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.
After todays presentation, there will be an opportunity for analysts to ask questions to ask a question you May Press Star then 1 on your telephone keypad to withdraw your question. Please press Star then 2.
On the call today are Dan Mondor, Chairman and CEO Ashish Sharma precedent.
Bob Barbieri interim Chief Financial Officer, and other members of the management team.
During this call non-GAAP financial measures will be discussed a reconciliation to the most directly comparable GAAP financial measures is included in the earnings release, which is available on the investors section of the company's website.
An audio replay of this call will also be archived there.
Please also be advised that todays discussion will contain forward looking statements. These forward looking statements are not historical facts, but rather are based in the company's current expectations and beliefs for a discussion on factors that could cause actual results to differ materially from the expectations. Please refer to the risk factors described in our form 10-K.
10-Q, and other SEC filings, which are available on our website.
Please also refer to the cautionary note regarding forward looking statements section contained in today's press release I would now like to turn the call over to Dan Mondor, Chairman and CEO. Please go ahead.
Thank you operator, and Hello, everyone.
Thanks for joining the call today.
I'm pleased to report a very strong second quarter for an Siegel with revenue up 14% sequentially to $65.7 million and we approached breakeven adjusted EBITDA, both well ahead of consensus.
The strength in the second quarter was driven by continued growth in the sell through of our suite of <unk> hardware and software solutions on a highlight an important fact, our 5 day solutions now represent almost 29% of total revenue an increase of 182% over the second quarter on last year.
These remarkable results reflect the continued overall market growth and.
And customer adoption of a single 5 G products.
1 of the core reasons, we can meet our customers' growing demand for our products is our longstanding direct relationships with key component suppliers and manufacturing partners.
Unlike what other players are experiencing our business was not impacted this quarter by the global semiconductor supply shortage.
That said, we believe this challenging environment will last at least through the rest of the year.
We remain vigilant and have confidence that our supply chain is set up to support growth for the remainder of the year.
Our rapidly growing software as a service business also experienced similar strength.
Excluding C track, South Africa software, including C track rest of the World and see go manage grew 49% year over year, and subscriptions increased 10% sequentially and 139% year over year.
More on our software initiatives will be provided from Ashish.
After the close of the quarter, we successfully completed the sale of our <unk>, South Africa unit, which brought in more than $36 million to our balance sheet.
This gives us the financial flexibility to meet customer demand and continued to invest in our products, while striving for free cash flow positive.
So here, we are halfway through the year and we see great momentum in our business as we remain diligently focused on our transformation into a <unk> pure play company.
Back in May we stated they believe the second half of 2021 would be better than the first half and we remain confident in that expectation.
And here's why.
First we continue to see for G. L T cell through stabilize at levels higher than we had pre pandemic.
With 2 more for G. U S carrier launches planned for this quarter you will note that we now sell to the 4 largest mobile networks for the U S.
And our pipeline of opportunities with international carriers and enterprise customers continues to grow net net we expect continued robust demand for <unk> LTE solutions.
Second we continue to rollout 5 G product deployments with new carrier customers across the globe.
The reception to both our existing and new products as well as our software platform has been fantastic.
We are steadily building, our fixed wireless business and we see fixed wireless is a major contributor in the second half and 2022.
Third we continue to see strong sales of our software offering that not only adds to the top line, but improves the overall value proposition of our solutions with greater stickiness pricing power and as she goes overall margin profile.
And fourth I'm happy to report that we're seeing a dramatic increase in engagement and pipeline for our enterprise <unk> fixed wireless solutions.
These opportunities are being driven primarily by well known enterprises that are increasingly looking for ways to integrate <unk> into their workflows.
This quarter, we began to see our investment in this strategy pay off.
Ashish will go into more specifics on these but I would like to highlight that there are well over 100 companies trialling and purchasing and single 5 G solutions for primary connectivity use cases.
Customers represent a wide range of verticals from the department of defense.
State and local agencies to major global logistic companies automotive manufacturers global airlines retailers utility companies and many other fortune 1000 companies.
Given what I just discussed I am confident that the ground has been laid for a strong second half and I can only imagine what 2022 will look like.
With that let me turn the call over to Ashish to provide additional detail.
Yeah.
Thank you Dan for the past few years. The company has been investing in the state of the art Fuji fire and cloud solutions to form a powerful engine for business transformation and growth.
As you heard from Dan we had impressive momentum in Q2, which gives me great excitement and optimism for what's ahead.
We saw cash more demand across the business led by major market shifts.
Hybrid book digital transformation and continued strong uptake of our subscription based software offerings.
As Dan mentioned, our fiber broadband portfolio grew 182% year over year in Q2, and now represents almost 29% of total revenue and cloud software portfolio grew 49% year over year, which is now 20% of total revenue.
Combined these next generation products now represent almost half of total revenue.
Up from 44% of our business just last quarter, let me reiterate that because it's impressive.
For a new generation of products now represents almost half of total revenue and we're just getting started and.
And C goes end to end portfolio is laying the foundation towards 5 Decontrolled enterprise networks that can under numerous applications and extend reach 2 areas never connected before.
What an exciting time to be in the <unk> space now let me provide details on our key businesses, let's start with mobile broadband use.
We saw great growth in the quarter with this portfolio.
And as Dan mentioned earlier, we see no signs of that slowing down with 2 more for G launches on track for the third quarter in the U S.
Our <unk> solutions are proving to be perfect for the walk from any of their paradigm and our carrier customers are leveraging these solutions to provide amazing broadband experiences for a variety of use cases like employee remote connectivity. This is because these solutions are capable of delivering sustained for.
<unk> performance with gigabit plus speeds low latency and security.
Let me provide an example of a new use case we.
We are collaborating with a tier 1 carrier in western Europe for digital transformation. This program is powering the wide range of innovative use cases across multiple sectors.
1 such use case is for mission critical search and rescue efforts and Mitch over a 5 day mobile solutions are being leveraged to greatly improve time to locate and rescue injured persons.
By utilizing drones outfitted with location equipment and cameras.
Search and rescue teams can map unknown areas, especially areas with complex terrain before deploying the land team our solution is enabling real time mapping with ultrafast processing of massive data.
Use cases like this are not possible with the lower speeds and higher latency of legacy technologies.
Next let's talk about fixed wireless access in the first half of the year, We released a series of 5 G F to blood products, including 2 endo products and 2 rugged outdoor products, which were certified for use in many markets globally.
We also just released a new industry on 5 G gateway purpose built for vertical markets.
The response has been extremely positive and we believe 5 DFW a will be a major revenue driver for us moving forward.
In addition to anchor channel partners, who have been quick to adopt our portfolio. We secured for product awards with operators in the U S, Australia and the Middle East.
Also note that we now have 5.5 new products certified by both T mobile and the ITEN, including hotspots and after a delay.
These new products are the primary drivers of the dramatic increase in customer engagements and they will be instrumental in driving revenue growth in the coming quarters.
Let me highlight 3 factors that are driving the adoption of these 5 new parks.
First the 5 day networks continue to be rolled out at an aggressive pace and operators are looking to quickly capitalize on this newly added network capacity.
This is reinforced by the work for many of their paradigm and our growing enterprise customer pool.
Second the breadth and depth of our 5 G portfolio is resonating with customers our partners and customers tell us that in single products bring out the best in their networks no. Other vendor has the performance of our <unk> and <unk> solutions not.
Not only are in Tivo solutions fast, but they are extremely reliable and proven to deliver consistent throughput for long periods of time.
And our new fixed wireless outdoor products can also sustain better connection at exceptionally long distances.
In addition of our products are built with the security first mindset with multiple layers of security burden of a proprietary hard on operating system software, which is at the core of all of our devices and this environment with ransomware and security beaches dramatically rising.
Everyone is coming to the realization that security is 1 of the killer apps for <unk> <unk>.
The combination of performance and security is unique to <unk> Segal and creates a highly differentiated competitive advantage.
To put it simply no other company empowers users to connect wirelessly with confidence like an ego.
Third our strategic decision last year to increase our investments in go to market is yielding fantastic results I'm very pleased with our performance and momentum across all geographies all market segments and all product line.
We're building a strong pipeline of 5 G customer opportunities across many enterprise segments in our global markets allow.
Allow me to now go over some of the use cases that are driving this incredible growth and user engagement for our activewear products.
They look for many of their shift across the book has increased in demand when the pandemic began business continue to be a connect first was paramount and often meant that security considerations to the backseat. This created significant while on the booties to an enterprise's overall network 6.
Geraghty posture.
Now, let's see commodity pandemic, we've seen demand extend beyond work from home as enterprises look to create more flexible work environment for their workforces.
Our <unk> portfolio is a natural choice as it improves on the already impressive capabilities of our mobile hotspots with stronger antennas that are heat dissipation that allows for 24 by 7 use.
And centralized cloud management.
Another growing use case is the branch office on remote location connectivity.
Whereas in the past wireless was used as a backup the capabilities of our 5 G products allow enterprises to make wireless their primary source of broadband.
For example, we're working with household name retail outlets by deep inside shopping malls.
Heavy equipment manufacturer wanting to implement digital twin application at a remote location.
In our global airline to light a secure wireless connectivity at all day of gates just to name a few.
With a record breaking long distance connectivity capabilities for <unk>.
Locations, such as secluded industrial parks, the moat logistics centers pop up emergency response centers and and other rural and outdoor settings can be lit up with high speed wireless axis and no time, we've seen this in action now to trials and pilots across the globe.
They are also working with the police department and 1 of the largest metro areas here in the United States. They are piloting an application to deploy new innovative counterterrorism tactics leveraging a rainmaker after blue 2010 millimeter wave solution to enable a secure and reliable lives.
FEMA for guest awareness video or D edge, where fiber would just not be economically feasible.
Another exciting pilot leveraging other 5 G. After Louis CBS is the department of Defense Testbed powered by a handful of partners to demonstrate a smart their house for a military logistics space.
Secure fiber network ensures that necessarily material is ready to deploy around the world at a moment's notice.
In this example in Siegel 5 day solutions are enabling several applications, including the timeless vehicles for inventory management machine learning for inventory tracking and augmented reality for improved workforce efficiency.
Again, these incredible use cases and applications were not possible before with other broadband technologies.
Lastly, let me cover the progress of our software business that continues to perform well.
During the first half of this year, we added over 65, new large enterprise customers to our Antigua manage software subscription customer base major retailers and wholesalers are using our cloud to securely connect configure and monitor our patients and distributed locations. We will continue to drive.
New cloud innovations to improve our software attach rates.
In closing I'm proud of the 5 G and cloud innovations, we've been bringing to market, which are driving such phenomenal growth for its eagle our unique ability to bring out the best in our network is making a siegel the partner of choice to deliver 5 <unk> solutions for the enterprise our team will continue.
The rapid pace of innovation. So we can continue fueling the fantastic growth, we are seeing with <unk> and now I would like to hand, the call over to Bob.
Thank you Ashish let.
Let me now review the results for second quarter fiscal 2021.
For a start I would like to remind everyone that year over year comparisons will be impacted by the pandemic driven surge for current and <unk> hotspots, which began in the June quarter last year and continued through the remainder of fiscal 2020.
That demand for our latest generation for G products has now normalized at a level higher than where it was pretty fast on it with that let us get into the results.
Q2 revenue was $65.7 million up 14% from the prior quarter's $57.6 million. The strong result was driven by 5 G solution revenue, which was up 71% sequentially and 182% from the prior year.
Second quarter, Iot <unk> mobile solutions revenue was $51.8 million up 27% quarter over quarter due to the strength of the <unk> solution sales accelerating sell through of <unk> products led to strong reorders in the quarter for more current partners T mobile in particular.
Enterprise SaaS solutions revenue of $13.9 million was down 5.3% from Q1 and up 21, 8% from Q2 of 2020.
The year over year increase resulted from continued subscriber growth and ctrip for us the world that we're now able to recognize as COVID-19 related restrictions have eased in some countries, allowing <unk> to install our Iot modules.
Cash at the end of Q2 was $40.4 million and includes $5.8 million of cash classified as held for sale as well as $3.7 million of restricted cash related to the sale of <unk> South Africa. The decrease on our cash balance was reflective of increased R&D spending on slide 2 per.
Products and net working capital adjustments.
We continue to diligently manage use of cash, including working capital and we expect cash burn will steadily decline in the coming quarters consistent with our free cash flow positive Gulfport in Sudan with.
With respect to the sale of Ctrip South Africa. The deal closed on July 31, with net proceeds of approximately $36.6 million you will see that amount reflected on the balance sheet. When we report our Q3 results.
From this point forward I will focus on non-GAAP measures a reconciliation from GAAP to non-GAAP is detailed in our earnings release and is found on our IR web page.
Gross margin for the Iot and mobile business was 24% down from 26, 1% in the prior quarter, but up from 23% in the prior year for the.
Climb from the prior quarter was due to product mix more specifically much stronger hardware sales versus Q1, we expect gross margin to steadily improve through the year as.
As we see a higher mix of <unk> and software revenue.
This dynamic is visible in the 100 basis point improvement from Q2 fiscal 2020 enterprise SaaS solutions gross margin was approximately 60%, which is roughly in line with the prior quarter and prior year. Our Q2 operating expense was $28 million up $1.3 million from the prior quarter and up from 20.
$2.9 million in the prior year the.
The increase in operating expense year over year reflects the investments we have made to take advantage of the considerable <unk> opportunities we are pursuing.
The significant increase in engagement and the opportunity pipeline is clear evidence we were right in pursuing this path.
Q2, net loss was $8.7 million or 8 cents, a share compared with a loss of $7.7 million or 8 cents a share on the prior quarter and a loss of $1.3 million or 1 penny and the year before.
Our adjusted EBITDA loss of $51000 improves on the prior quarter's loss of 868000, but is down from the pandemic 8 EBITDA gain of $4.3 million last year for.
For additional details on non-GAAP and adjusted EBITDA results. Please refer to the reconciliation tables in our press release finally, some thoughts for the rest of 2021, we have seen a significant expansion of our sales pipeline with the carriers, especially with our fixed wireless products and from enterprises and as a result, we remain confident.
To reiterate the second half for the year will be stronger than the first day. In addition, we expect to see Iot and mobile growth sequentially for the rest of this fiscal year.
With that let me turn it back to Dan produce closing remarks.
Thanks, Bob.
Before moving to Q&A I want to welcome Stephanie borrowers to our board of directors.
Stephanie brings a wealth of experience in international Relations and government Affairs, and we're delighted to average or in our board.
She will be instrumental in opening new global markets for <unk> Segal by helping us with our security supply chain and government approval aspects of our <unk> products.
On the CFO search we continue to make good progress and we have narrowed our list of candidates.
That said Bob has been doing an excellent job.
I am in no great Rush and plan on taking the necessary time to find the right candidate.
While there will have the experience and capabilities to support the growth of our next generation <unk> and software solutions.
I will conclude by expressing my sincere thanks to our dedicated employees, who continue to execute so amazingly well in these challenging times.
They are the driving force behind the strong second quarter and the tremendous growth in our opportunity pipeline and I can't thank them enough there.
There are accomplishments gives us even more confidence in our ability to become a high growth high margin <unk> and software as a service global solutions company.
Thanks again, everyone.
We will now begin the question and answer session to ask a question you May Press Star then 1 on your Touchtone phone. If you are using a speakerphone. Please pick up your handset before pressing the keys.
Anytime Youre question, that's penetrating you would like to withdraw your question. Please press Star then 2.
At this time, we will pause momentarily to assemble our roster.
Okay.
Our first question will come from John Marchetti with Stifel. Please go ahead.
Thanks, very much and thanks, guys for taking the question.
If I can just start first on the on the <unk> sale can you, let us know what revenue was for the portion of that business that you're divesting in the first half adjusted I'm, assuming given your comment about a better second half over first we need to exclude that out I just want to make sure that we have a sense of what that revenue is that we should be.
Counting for.
Yes, Hi, John.
Thanks very much.
Good question.
Bob was jumping and ready to answer so take it away Bob Yeah. Thanks, a lot.
If you with respect to South Africa in the first 2 quarters.
For the amount of revenue generated was $14.2 million.
And the.
July balls.
In terms of about 2.5 because we saw exactly at the end of the mall.
Yes. Thank you very much that's helpful. There and if I can just follow up with a question on the margin, but I want to make sure that I understand this correctly.
You clearly saw more <unk> in the quarter all of that very very positive. So I was a little bit surprised that net margins took a step back here given the growth that we're seeing in <unk> and the software portfolio.
Is it solely a function of more <unk> mifi hotspots versus something fixed wireless access or things of that nature. Just you can help me understand that dynamic just so we can think about that as we're looking out over the next several quarters and into 'twenty 2.
Yes, Thanks John.
Well the overall margin for our <unk> products is better than our <unk> products.
That said our fixed wireless access products are even better than our hotspots, we believe.
There'll be a large improvement on an overall 5 <unk> solutions gross margin and especially we have the value added software.
<unk> for the hardware economies of scale learnings.
And we did we did through the journey and for G.
Yes, pretty appreciable gross margin improvement over time, better inventory supply chain cost that said there was premiums for our spot market purchases as well as higher freight and shipping costs that we saw in the quarter for all the reasons that I think the market as well.
<unk>.
Great and then maybe 1 last 1 for me and I'll jump out just on the on the software side should we expect more applications launched this calendar year or is that more of a 'twenty 2 event.
Yes, let me, let me turn it over to Ashish Hey, John Good question. So.
We do expect to launch some new solutions data. This year. In addition to continuing to add more functionality and more features.
Listing desperate maintenance solutions, so there would be some new ones coming out.
We do continue to exist.
The existing ones.
Great. Thank you very much.
Thank you John.
Our next question will come from Lance Vitanza with Cowen and company. Please go ahead.
Hi, Thanks, Thanks, guys for taking the questions and congratulations on the nice quarter I wanted to actually ask about the pipeline in the enterprise channel.
Actually I don't know for Dan or someone mentioned that.
Net there is now well over I think the phrase was well over 100 customers Trialing and buying right now and then there was the list of all the different types.
I wanted to try to get a sense for how close or far you are from converting the pipeline for revenue, but it sounded like from that statement that maybe youre already beginning.
Okay.
From the press release and the language regarding the improved revenues on the back half versus the first half it sounds like that's largely attributable to the enterprise pipeline being being sort of converted.
Is that right am I reading it the right way and was enterprise was it measurable was there a contribution in <unk> was a measurable will it be measurable in Q3.
How should we be thinking about that thanks.
Yeah, Hi, Lance Thanks for the question.
Well as you know on enterprise and <unk> is what we're referencing.
We're just getting going.
Really when the comment was you're right 100, plus <unk> customers in our enterprise pipeline, but that's from zero in may so.
As for the incredible growth.
And some of the we can't name names, but largest corporations and brands in the world very very impressive <unk> pipeline theyre looking to adopt them. So.
We have good visibility on the pipeline.
Projects and defined we understand the scope of the budget start times for the.
The decision makers are who cuts to pose that sort of thing and the selection process. So in terms of timeline to answer your question.
To start dates.
For the pipeline, we're referencing can be anywhere from 30 days to a few months and the other part of your question. Yes. There was the <unk> enterprise revenue in Q2, but it was a very very small number as you can imagine so we do see that ratchet ramping up quite quite nicely.
Okay.
Okay and then my other question was.
Think about 5 plus cloud that if I got it right that improved sequentially to 49% I think you said, 49% of revenue from 44% in the first quarter and I think it was the <unk> piece went from 20% to <unk> 29 per se the cloud piece, if I got it right that actually.
As a percentage of revenues went down even though the revenue grew 49% year on year. So was that I guess it was just that when you have got 5 gp's tripling year over year then.
That piece is going to get smaller it but are you pleased with sort of the way that those 2 are growing relative to 1 another.
Well very very pleased and I think you hit on the denominator was a different number so yes.
Yes larger numbers Saturday.
The ratios.
We're different 5 G is clearly going gangbusters.
I think overall, if you look at the <unk>, 49% up from where it was a year ago on last quarter.
The way I've said it as we're getting the growth in the areas we want to get the growth. Those are the those are the engines that we invested in.
Incredible market traction the numbers speak for themselves. So we.
We expect to see that growth curve continuing.
Great if I could just squeeze in 1 more on the cash balance.
If I just take the $37 million from the sales to track and added to the $30 million.
That you reported is that sort of the weighted you pro forma cash balance is kind of $67 million or will there be some taxes payable there and I'm. Just wondering I know you mentioned that you think that the burn is going to decline I think you'd mentioned noticeably over the next few quarters.
On a straight math basis, you mean 20 million burn versus 67 million pro forma cash, it's only 3 or 4 quarters worth of cash are you feeling comfortable with your liquidity position.
Would there be perhaps a need to to raise incremental capital at this stage.
Yes, I'll ask Bob to comment just a slight correction it was $40 million.
Cash at Q2 end, but your question sorry, I apologize.
No problem no problem.
There was there were some things associated with Q2 that were if you will specific to Q2.
If you will some 1 time cash burn aspects and we want to.
Bob I'll ask you to to explain that so we can go go through that but we do see cash burn.
It was high because of the working capital changes and we've certainly seen a steady decline going forward, but Bob can give you some of the color on the Q2 cash use of cash.
So Lance a couple things first just on terms of.
The raw cash amount.
In the.
Held for sale.
Friedman what happens is the cash that we have gotten after the sale closed on.
For a little bit under $7 million accrues to us but is on the line of the assets held for sale and then second we have restricted cash of about $3.7 million for a period of about 12 or exactly 12 months and for closure and that will be our cash and that is just filled separately.
Lee.
<unk> from <unk>.
Farquhar better terms on a rep and warranty standpoint on the sale, but that is our cash and then if you add those together thats, where you get to a $40 million as Dan mentioned and then going forward.
And how do you think about it in the first quarter a couple of things 1 is the company paid its bonuses and restricted stock in the first quarter.
And that had an impact and that we basically held taxes from the employees at our cash accounts in the first quarter, but then relieve them on the second quarter.
Through our outside payroll company, so that was about $7 million on.
On the and impacts on the cash movement.
The remainder was certainly just the movement from quarter to quarter, we had.
So less rebates only because of unit.
If you look at for Q3 and Q4 prior year versus the lower Q1 revenue certainly less free base for urban Theres about a 1 quarter lag so that contributed.
Bolt on Qualcomm rebates all current yes.
For for more of a cash burn and then that will reverse itself going forward because of the step up on revenue to Q2.
As well as some other in and out on working capital certainly when you have a lower like for Q1 revenue number you. Your accounts receivable activity is less on your recovery and then that will reverse itself because of the strength of Q2 as we move forward. So hopefully that's a little bit of color where the other thing is.
Dan mentioned, we are managing that cash burn down and Thats the goal.
That's how we're executing.
Thanks, guys I appreciate it.
Again.
Again, if you have a question. Please press Star then 1.
Our next question will come from Mike Walkley with Canaccord Genuity. Please go ahead.
Okay.
Hey, guys. Good afternoon. This is Daniel on for Mark Thanks for taking my question.
Just a quick 1 for me could you just give us a sense of the timing on some of the new carrier launches or as you mentioned moving forward.
Yeah, Hi, Thanks for your question.
Well we have.
It's part of our pipeline, we have a number of launches.
We expect to occur this quarter and going forward. The pipeline has a pretty long tail on at different stages.
So.
Can't really give specific answers as to numbers, but.
Again, it goes back to a very healthy pipeline and in terms of the carrier pipeline, it's a longer cycle sales cycle as you can imagine so.
The engagement from testing the products to approval for certification to launch it takes time, but we.
We expect to expand our carrier customer base going forward.
I think at any moment in time.
Right now we've got something like 30, Rfps that we're responding to.
Again, it's a function of healthy pipeline, but we expect to have and we expect to announce the steady flow of.
Of new carrier customers. That's number 1 number 2 it's additional product slots within our customers already have.
That's another aspect.
Our next question will come from Mike Latimore with Northland Capital. Please go ahead.
Hi, This is the other day on behalf of Mike Lattimore.
Could you tell me how many 10 percentage customers did you have.
10% customers.
Okay.
While Bob is looking for numbers.
The answer I'm going to give us too.
Okay.
Okay can you give me like what why that a neutral person day just to total revenue of these 2 customers.
No we're not going to we don't break out.
The actual revenue dollars so.
<unk>.
That's just not something that we discussed because we do not want to.
Identify revenue numbers for any specific customer. So we just don't provide that kind of breakout.
Alright, alright on.
On the mobile and Iot pipeline.
What percentage of it is international.
Ashish.
Yes, it did not.
On a lot at this point <unk> got a nice pipeline, we had some new customers, but the majority of the value of some time from North America.
Oh, yes.
Thank you for revenue answer relative to pipeline so.
Not a lot of international revenue currently.
So on a relative basis, because the international market is a new market and where we're building products and our go to market teams the pipeline on a percentage basis would be much higher than the current revenue on a percentage basis.
That helps.
Alright, great.
Thank you.
Thanks.
This concludes our question and answer session I would like to turn the conference back over to Dan Mondor for any closing remarks.
Well, thank you operator.
I will say this and just to wrap up the <unk> team is executing exceptionally well and every part of the company.
As you saw we are seeing growing customer adoption of our <unk> and software solutions with carriers.
And the market reception of our newly launched enterprise portfolio is incredible.
We have highly differentiated products on our go to market teams have never been stronger.
So you put it all together these are the reasons behind our pipeline of opportunities being the largest in recent company history.
So net net we've laid the groundwork for a strong second half as we discussed and I think an amazing 2022. So thanks again everyone.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.