Q4 2021 TechTarget Inc Earnings Call
[music].
Hello, everyone and welcome to the Tech target Q4, 2021 earnings release call.
Speaker 1: Hello everyone and welcome to the TechTarget Q4 2021 Earnings Release Call.
You'd like to ask a question at the end of the presentation. Please press star followed by one on your telephone keypad.
Speaker 1: If you'd like to ask a question at the end of the presentation, please press star followed by one on your telephone keypad. I'll now hand over to your host, Charlie Renwick of the General Counsel to begin. Charlie, please go ahead.
I'll hand over to your host Charlie Rennick General Counsel to begin Charlie. Please go ahead.
Thank you and good morning, joining me here today are Greg straight costs, our executive Chairman, Mike <unk>, Our Chief Executive Officer, and Dan <unk>, Our Chief Financial Officer before turning the call over to Greg I would like to remind everyone on the call of our earnings release process as previously announced in order to provide you with an update on the business in advance of the call we Poe.
Speaker 2: Thank you and good morning. Joining me here today are Greg Straykosch, our Executive Chairman, Mike Kutoya, our Chief Executive Officer, and Dan Norick, our Chief Financial Officer. Before turning the call over to Greg, I would like to remind everyone on the call of our earnings release process. As previously announced, in order to provide you with an update on the business in advance of the call, we've posted our shareholder letter on the Investor Relations section of our website and furnished it on an 8K. Following Greg's introductory remarks, the management team will be available to answer any questions.
Our shareholder letter on the Investor Relations section of our website and furnished it on an 8-K following greg's introductory remarks, the management team will be available to answer any questions any.
Speaker 2: Any statements made today by TechTarget that are not factual may be considered forward-looking statements. These forward-looking statements are based on assumptions and are not guarantees of our future performance. Factual results may differ materially from our forecast. Forward-looking statements involve a number of risks and uncertainties, including those discussed in the risk factors section of our filing.
Any statements made today by tech target that are not actual may be considered forward looking statements. These forward looking statements are based on assumptions and are not guarantees of our future performance actual results may differ materially from our forecast.
We're looking statements involve a number of risks and uncertainties, including those discussed in the risk factors section of our filings with the SEC. The company undertakes no obligation to revise or update any forward looking statements in order to reflect events that may arise. After this call except as required by law. We may also refer to financial measures not prepared in accordance with GAAP a reconciliation.
Speaker 2: company undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this call, except as required by law. We may also refer to financial measures not prepared in accordance with GAAP, a reconciliation of these non-GAAP financial measures to the most comparable GAAP measures accompanies our shareholder letter. With that, I'll turn the call over to Greg. Great. Thank you, Charlie.
<unk> of these non-GAAP financial measures to the most comparable GAAP measures accompanies our shareholder letter with that I'll turn the call over to Greg.
Alright, Thank you Charlie.
2021 was a banner year for tech target, we successfully integrated acquisitions enjoyed healthy revenue growth at over $100 million and adjusted EBITDA.
Speaker 2: Successfully integrated acquisitions, enjoyed healthy revenue growth, had over $100 million in adjusted EBITDA.
Speaker 2: and strengthen our balance sheet through strong free cash flow and a $400 million convertible debt offering that we completed in December .
Nathan our balance sheet through strong free cash flow and a $400 million convertible debt offering that we completed in December .
We remain optimistic about 2022 and beyond as we have for tail winds at our back.
Speaker 2: We remain optimistic about 2022 and beyond as we have four tailwinds at our back. The first tailwind is a healthy.
First tailwind at the healthy environment.
Speaker 2: The second tailwind is the modernization of the sales and marketing organizations through the use of data.
And the second tailwind as the modernization of the sales and marketing organization through the use of data.
Speaker 2: The third tailwind is growing compliance and sensitivity to privacy issues, which we benefit from because of our first party data and permission based audiences. And the fourth tailwind is the acceleration of the migration of face-to-face budgets online.
The third tailwind is growing compliance and sensitivity to privacy issues, which we benefit from because of our first party data and permission based audiences.
And the fourth tailwind is the acceleration of the migration of face to face budget online.
Speaker 2: Today we are releasing four annual metrics to demonstrate that our strategy is working and that we are executing at a high level. We are also releasing today annual guidance for 2022 with expected revenues between $310 million and $315 million and adjusted EBITDA between $120 million and $125 million. I will now.
Today, we are releasing port annual metrics that demonstrate that our strategy is working and they were executing at a high level. We are also releasing today annual guidance for 2022 with expected revenues between $310 million and $315 million and adjusted EBITDA between $120 million and 102.
$25 million.
We'll now open the call to questions.
Ladies and gentlemen, if you would like to ask a question. Please press star followed by one on your telephone keypad now.
Speaker 1: Ladies and gentlemen, if you would like to ask a question, please press Start followed by 1 on your telephone keypad now.
Thank you.
Our first question comes from Justin Patterson of Keybanc, Justin Your line is now open.
Speaker 1: Our first question comes from Justin Patterson of KeyBank. Justin, your line is now open.
Great. Thank you very much you discuss how priority engine is no longer a b.
Speaker 2: Great. Thank you very much.
Speaker 2: primary source of revenue growth, could you highlight some of the key products where you're seeing momentum? And I want you to think about the growth rates there. And then secondarily, just diving deeper into priority and.
Primary source of revenue growth could you highlight some of our key products, where you're saying momentum and how we should think about the growth rates. There and then secondarily just diving deeper into the priority Amgen could you compare and contrast.
The revenue opportunity for the marketing version versus the sales version given you already have a foothold in marketing department, how should we think about the pace of that sales product scaling out. Thank you.
Great. Thanks, Joseph This is Mike in terms of priority engine and.
Speaker 3: Thanks, Justin. This is Mike. In terms of priority engine, what we're seeing is really strong growth across all of our product lines. As we noted in the shareholder letter, the priority engine revenues grew 20% year over year. And that represents about 25% of our overall revenue.
Well, we're seeing really strong growth across all of our product lines and as we noted in the shareholder letter that priority engine revenues grew 20% year over year.
And that represents about 25% of our overall revenue.
Speaker 3: So our largest, you know, some of the other products that we talk about are purchase intent, data-driven, demand generation solutions. And we see those that would represent close to the, you know, 40 to 50% of our overall revenue, and those are growing at a very healthy clip. And the reason why we're seeing that growth is because of the tailwinds that Greg had mentioned on the introduction. Having a permission-based audience with all the privacy concerns and compliance issues out in the market, our customers really want to go.
Our largest some of the other products that we talk about our purchase intent data driven demand generation solutions.
And we see those that would represent close to the <unk>.
40% to 50% of our overall revenue and those are growing at a very healthy clip and the reason why we're seeing that grow.
Because of the tail winds that Greg mentioned on the introduction.
Having a permission based audience with all the privacy concerns and compliance issues out out in the market.
Our customers really want to go and engage in capture trusted and verified.
Speaker 3: and captured, trusted, and verified.
Speaker 3: IT buyers in the IT decision making process. And because of our owned and operated sites, content of sites, across all the major enterprise technology categories, our members come in, they're often permission based. We understand what they're doing based on the content that they're reading and that's very relevant for our customers because they want to know who's actually doing what in terms of engaging with content.
It buyers in the decision, making process and because of our owned and operated sites content of sites across all the major enterprise technology category. Our members come in they often their permission based we understand what they're doing based on the content that they are reading and that's very relevant for our customers because they want to know who's actually do.
What in terms of engaging with content.
Speaker 3: and how to follow up with them. So we're seeing everything across the board grow, and everything that we do across all of our suite of products is driven by our first-party purchase intent data, which is a good benefit for us. And in terms of the priority engine, yes, we've historically and we will continue to sell in a marketing department.
And how to follow up with them. So we're seeing everything across the board grow and everything that we do across all of our suite of products is driven by our first party purchase intent data, which is a good benefit for us and in terms of the priority engine, yes, we've historically and we will continue to sell on a marketing departments. There are two different use cases.
Speaker 3: There are two different use cases. The marketing departments will leverage that data to go...
The marketing departments will leverage our data to go.
Speaker 3: after very specific marketing initiatives like ABM strategies, going after specific accounts, competitive depositioning, what we noticed over the last couple of years was the data that our marketers were receiving from Priority Engine was getting leveraged by the sales team.
After very specific marketing initiatives like ABM strategies going after a certain specific accounts competitive the positioning.
What we noticed over the last couple of years worth of data that our marketers, we're receiving from priority engine was getting leverage five each sales teams and those sales teams, we're being able to identify which accounts that they should go target now that Dave has very similar but the way they use the data is very differently. So.
Speaker 3: And those sales teams were being able to identify which accounts that they should go target. Now the data is very similar, but the way they use the data is very differently. So what we did was we increased the, we had a launch in November , an update release, that really focused on the sales use case and updated user interface so sales reps could go out and see.
What we did was we increased the <unk>, we had a launch in November and update release that really focus on the sales use case and updated user interface. So sales reps can go and see.
Which individual prospects, where engagement, which individual content at a specific time and date. So we captured that timeline better user interface to manage their territory enable them to take the prospects and enter them into their CRM system understand which accounts and prospects within their territories.
Speaker 3: which individual prospects were engaged in it, which individual content at a specific time and date, so we captured that timeline, better user interface to manage their territory, enable them to take the prospects and enter them into their CRM system, understand which accounts and prospects within their territories.
Speaker 3: were engaging on their own vendor's website. So being able to capture that information and put it into a sales use case and into the sales process has been very beneficial. So we expect to see.
We're engaging on their own vendors website, so being able to can.
Capture that information and put it into a sales used case and into the sales process has been very beneficial so we expect to see.
Both on the marketing and sales side, the revenues grow being able to get sit the.
Speaker 3: Both on the marketing and sales side, the revenues grow. Being able to get the consistent data across marketing and sales helps create that bridge that's been missing between sales and marketing for years. So that's a big focus on that. And we think that both will enable growth across priority.
<unk> data across marketing and sales helps.
It helps create that bridge, that's been missing between sales and marketing for years. So that's a big focus on that and we think that bolt will enable growth across priority engine.
Speaker 2: Yeah, and one point I would add there is I just want to make sure this doesn't mis-contrude. Priority Engine is still our lead product offering and our very biggest growth opportunity. It's just that today, as Mike said, we're seeing strength across the board and all products are growing. But certainly Priority Engine is our biggest and best growth opportunity.
Yes, and one point I would add there is that's going to make sure. This isn't misconstrued priority engine is still our lead part product offering and are our very biggest growth opportunity.
It just it today all as Mike said, we're seeing strength across the board and.
And all products are growing but certainly priority engine is our is our biggest and best growth opportunity.
Great. Thank you.
Perfect. Thank you for your question Justin.
Our next question.
Speaker 1: Our next question comes from Aaron Kesler. Aaron, your line is now open.
It comes from Aaron Kessler Allen Your line is now open.
Speaker 2: Thank you. I just made a couple of questions. On the customer metrics, I appreciate that. Maybe you could provide a little bit more details around that, maybe specifically around some of the organic growth.
Thank you just a couple of questions on the customer metrics I appreciate that making it a little more details around that makes simply routes with organic growth from those customer metrics that would be helpful. And then secondly, just on the guidance for.
Speaker 2: from those customer metrics, that would be helpful. And then second, just on the guidance for, it looked like it was relatively in line with expectations. Q1 a little bit made light of estimates. It just implies a little bit of a sequential decline. Can you just discuss the sequential decline for Q1? Is that just more of the advertising-like products that would be more seasonal? And do you expect that to snap back more in Q2? Thank you.
And I'll look like it was relatively in line with expectations Q1, a little bit light of estimates.
It's a little bit of a sequential decline can you discuss the sequential decline for Q1 is that just some worthy advertising like product.
More seasonal and you expect that to snap back more in Q2. Thank you.
Speaker 3: Yeah, Aaron, on the Q1 sequester decline, that's normal based on budgets and seasonality. That's pretty consistent with previous years. So Q1's your lowest revenue number. IT vendors don't have all their budgets set until later in the quarter. And then you'll see Q2 ramp up. Q3 relatively consistent up a little bit from Q2. And then the biggest quarter is Q4. So I think if you look historically you'll see that the...
Darren on the <unk>.
Q1 sequential decline that's normal based on.
Budgets and seasonality and that's pretty consistent with previous years, So Q1 s your lowest revenue number.
Vendors don't have all of their budget set until later in the quarter and then Youll see Q2 ramp up Q3 relatively consistent up a little bit from Q2, and then the biggest quarter is Q4. So I think if you look historically youll see that.
Sequential.
Speaker 3: from Q4 to Q1 is roughly, you know, down 13 to 15%. In terms of
From Q4 to Q1 is roughly down 13% to 15%.
Yes in terms of.
In terms of the oil.
The annual numbers that we laid out.
Speaker 3: The annual numbers that were laid out, you know, we started to report on these numbers last year and, you know, we have our net revenue retention. We saw our total customers up eighty percent.
We sat in a report on these numbers last year and we have our net revenue retention, we saw total customers up 80%.
Speaker 3: Increase in $100,000 spenders up 80%. Increase in million-dollar customers up over 70%. And the story for these annual numbers are exactly what we wanted to prove out and what our thesis was for the acquisition of Brighton.
Increase in $100000 spend is up 80% increase in million dollar capital of over 70% in the story for these annual numbers are exactly what we wanted to prove out what our thesis was for the acquisition of bright talk.
Speaker 3: A, we saw organic growth, which we don't break down the organic versus the acquisition, but we saw healthy organic growth as well as acquisition growth. It really does validate why we made this acquisition. And A, we're selling at the same cost.
We have a we saw organic growth, which we don't break down the organic versus the acquisition, but we saw healthy organic growth as well as acquisition growth, but really it really does validate why we made this acquisition.
A we're selling at the same customers.
Speaker 3: We're selling very complimentary products. We're, you know, the TechTarget side selling content syndication and text-based solutions, as well as Priority Engine, and on the BrightTalk side, webinars and virtual events. And so when we have existing customers, they become more engaged with our entire portfolio and spend more of their combined offerings with us. And as we deliver those revenues and the increased revenues, we have the very similar operating margins.
<unk> very complementary products, where all the tech target sites, all content syndication and tax based solutions as well as priority engine and on the <unk>.
Writes oxide webinars and virtual event and so when we have existing customers as they become more engaged with our entire portfolio and spend more of their combined offerings with us and as we deliver those revenues and increased revenues. We have the very civil operating margins. So youll see the healthy margins as we have resulted in this.
Speaker 3: So you'll see the healthy margins as we've resulted in this quarter at 40%. So in terms of the overall question, we're seeing a good balance between the organic as well as to the acquisition, and that really does validate the thesis of why we made that acquisition.
440%. So in terms of your overall question, we're seeing a good balance between the organic as well so the acquisition and that's really does validate the thesis of why we made that acquisition.
Speaker 4: Great, thank you. And maybe quickly on the healthcare IT after this new made recently, just any updates on that in terms of the progress with integration?
Great. Thank you and maybe quickly on the health care. It acquisition you made recently just any updates on that in terms of the progress with integration.
You know that we closed out on August <unk> and <unk>.
Speaker 3: You know that we closed down on August 1st and right now we've done a few low hanging fruit things in terms of the operational side.
Right now we've done a few low hanging fruit things in terms on the operational side, but we are enabling <unk> to continue to arise and we our plans for that will be to launch new products into that market watch new segments in priority engine and be able to leverage some of our channel products on the <unk> side to help with the audience and lead generation opportunities.
Speaker 3: We are enabling Xtelligent to continue to run, and our plans for that will be to launch new products into that market, launch new segments and priority engines, be able to leverage some of our channel products on the BrightTalk side to help with the audience and lead generation opportunities in Xtelligent. But that integration will happen throughout the middle and end of this year in terms of operationalizing and laying out those new products.
<unk> and <unk>, but that integration will happen throughout the end of this throughout the middle and end of this year in terms of operationalized laying out those new products.
Great. Thanks, so much.
Sure.
Speaker 1: Perfect, thank you for your question Aaron. Our next question comes from Bavin Shah of Deutsche Bank. Bavin, your line is now open.
Perfect. Thank you for your question Eric. Our next question comes from <unk> Shah of Deutsche Bank. Robyn. Your line is now open.
Yes.
Speaker 5: Great, thanks for taking my question. Just maybe on that point that you talked about of what you're seeing in terms of BrightTalk, can you just maybe talk about exactly one of the areas where you're seeing a good cross-sell opportunity and what's driving that and kind of what's resonating with customers?
Great. Thanks for taking my question just maybe on that point that you talked about of what Youre seeing in terms of the bright talk can you just maybe talk about exactly what are the areas, where you're seeing good cross sell opportunity and what's driving that and kind of what's resonating with customers.
Sure.
Speaker 3: So above and on, if you look back at the acquisition and why we made that acquisition, there were several reasons. One, their permission-based audience, their content strategy, and the ability to throw off really valuable first-party purchase intent data, but also the complementary product offering. If you look at TechTarget, we're very text-based, white papers that are fueling all the information, our editorial teams, and all that gets captured into our priority engine platform.
So Bob and on if you look back at the acquisition of why we made that acquisition there were several reasons one there.
Their permission based audience their content strategy and the ability to throw off really valuable first party purchase intent data, but also the complementary product offering.
That's the target we're very you know.
Tax base White papers.
They're doing all the information our editorial teams and all of that gets captured into our priority engine platform.
Speaker 3: BrightTalk is very webinar, virtual based type of information, buyers going on to research different topics. They'll spend 20, 30, 40 minutes on a webinar, and that is so very much complementary. So in terms of the low hanging fruit, in 2021, what we did was we let both organizations run fair.
<unk> is very webinar virtual based type of information buyers going on to research different broad topics.
Band 2030, 40 minutes on a web webinar and that is so very much complementary so in terms of the low hanging fruit in 2021, what we did was we've led both organizations run fairly separately, but where we would identify accounts that were spending with Brian talk but not spending.
Speaker 3: But where we would identify accounts that were spending with BrightTalk but not spending with TechTarget or spending with TechTarget and not spending with BrightTalk, we would start introducing each other's sales force into those accounts to show the complete story, text-based, webinar-based, virtual-based, bringing it all together, being able to engage with buying team members, and then capturing that intent.
With tech target, our spending with tech target not spend it with bright stock we would start introducing each other's sales force into those accounts to show the complete story tax base webinar based virtual base, bringing it all together being able to engage with buying team members and then capturing that intent.
Speaker 3: And delivering that through priority entry was a really big value. We've accelerated that where our customers want a mixed-media vehicle strategy. They want an end-to-end solution. And so we are identifying...
And delivering that through priority Angela really big value, we've accelerated that where our customers want a mixed media vehicles strategy. They want an end to end solution and so we are identified not only customers that are spending with us with one side and not the other customers that are spending with ball how do you tie.
Speaker 3: not only customers that are spending with us and with one side and not the other, but customers that are spending with both.
Speaker 3: How do you tie that together and align it? And then how do we actually...
That together in a line and then how do we actually bring what we're delivering a work on this content to close strategy, where we can get in with some of our analysts and experts even earlier in the stage to help our customers with their messaging and strategic positioning through content creation that can then be delivered and exit.
Speaker 3: bring what we're delivering, what we're calling this content-to-close strategy, where we can get in with some of our analysts and experts even earlier in the stage to help our customers with their messaging and strategic positioning through content creation that can then be delivered and executed through webinars, as well as text-based, and ultimately capturing the priority engine platform and deliver it back to our customers to help them close more deals. That's where we see a lot of the synergies in the end-to-end capability.
Cute it through Webinars as well as tax base and ultimately Catherine the priority engine platform and delivered back to our customers to help them close more deals that's where we see a lot of the synergies in the end to end capabilities.
Speaker 2: I'll add in a little piece of information here. There's dozens of vendors competing for these deals, and most vendors get eliminated without ever getting a chance to talk to the vendor. The way the vendors have responded by that is they are producing a tremendous amount of content. If you go to any software vendors...
That's helpful.
All information here.
Most.
It doesn't the vendors in competing for these deals and most vendors get eliminated without ever get a chance to talk to the vendor. So the way the vendors that responded by that is they are.
Producing a tremendous amount of content if you go to any software vendors.
Speaker 2: website, you'll see that they have multiple white papers and multiple webinars. And TechTarget has been the leading...
Website youll see that they have multiple white papers and multiple webinars and tech target has been the leading.
You have your vendor produce white papers basic.
Speaker 2: you know, basically forever. And Brighttalk is the leading distributor of vendor produced webinars. So a very natural fit, a similar product offering, but done with separate budgets. So those product offerings were very complimentary and really set itself up for a very healthy cross selling opportunity.
Basically forever and bright park is a leading distributor of vendor produce webinars. So a very natural fit a similar product offering but.
Done with separate budget, so those product offerings.
They're very complementary and really set itself up for a very healthy cross selling opportunity.
Super Insightful that's helpful. There and just given the early success you had with bright Park I mean, how do you think about the appetite for potential future M&A going forward or is it still a bit of digestion paired with both bright bottlenecks indulgence.
Speaker 5: Super insightful, that's helpful there. And just given the early success you had with BrightTalk, I mean, how do you think about the appetite for potential future M&A going forward? Or is it still a bit of digesting period with both BrightTalk and Xtelgence?
No I mean, we we are very.
Speaker 3: when it comes to M&A, and we're having many, you know, we have regular discussions, Marvin, about what fits, and some of the criteria that we've talked about before is still very consistent today. You know, we're looking at different content strategies, good relevant content, permission-based audience, the ability to throw off first-party purchase intent data.
Opportunistic when it comes to the M&A and we are having many we have regular discussions Barton about what beds in some of the criteria that we've talked about before is still very consistent today.
Looking at different content strategies, good relevant content permission based audience the ability to throw off first party purchase intent data.
Speaker 3: as well as other complementary product lines. So we are actively, we continuously look at and have discussions.
As well.
Other complementary.
Product lines. So we are actively we continuously look at and have discussions.
Speaker 3: And we don't have anything to report today, but it's something that we'll keep our eyes on.
We don't have anything to report today, but it's something that we'll keep our occupier izod.
Speaker 5: Thanks, Michael. Just for the last one for me, in terms of your guidance for 2022, how are you thinking about some maybe marketing budgets potentially moving back towards face-to-face events? Is that a potential headwind going forward? Just fully appreciating that Online Solutions are here today. Are you going to maybe see a shift a little bit towards in-person user conferences and the like? Yeah.
Got it. Thanks, Thanks, Michael just the last one.
For me in terms of your guidance for 'twenty. Two how are you thinking about some maybe marketing budget potentially moving back towards face to face events is that a potential headwind going forward just fully appreciating that I'll ask solutions are here to stay or are you going to maybe see a shift a little bit towards.
In person user conferences and alike.
Yes, I think that the major shift has obviously gone from face to face events to online and digital I don't think face to face event will go away.
Speaker 3: has obviously gone from face-to-face events to online and digital. I don't think face-to-face events will go away. And I think there will be some pockets of face-to-face events, which is normal. I mean, sellers want to get out and meet clients face-to-face. There will be some events out there. I think a good analogy that we had used, I think in the last earnings call, which we talked to other folks.
And I think there'll be some pockets of face to face events, which is normal I mean sellers want to get out and meet clients face to face there'll be some events out there I think a good analogy that we had used.
I think in our last earnings call, which we talked to other folks is it's almost like the newspaper business right like newspapers, you know everything you get 99% of your information online but.
Speaker 3: is it's almost like the newspaper business, right? Like newspapers, you know, everything, you get 99% of your information online, but.
Speaker 3: Every once in a while you still want to get a newspaper and it's still out there and it's still available for people that want to pick up that newspaper. I think the face-to-face events will still be out there, but I think once you switch from...
Every once in a while you don't want to get a newspaper and it's still out there and its still available for people that want to pick up that newspaper I think the face to face events will still be out there, but I think once you switch from.
Speaker 3: You know, the other analogy, from an analog to digital type of mindset, it's really hard to go back. A, you can scale the business more with the digital, you can measure it more, and it's more cost-effective. So, I think you hit it right. There might be a...I don't think there's going to be a tailwind coming back at us. I think there'll be a place for face-to-face events. I think it'll be pretty small. Great. Thanks for taking my question.
The other analogy from an analog to digital type of mindset, it's really hard to go back and you can scale the business more of the digital you can measure it more and it's more cost effective. So I think you hit it right there might be I don't think theres going to be a tailwind coming back at US I think there will be a place for face to face events I think it will be pretty small.
Great. Thanks for taking my questions and congrats on the strong ammonia.
Thank you.
Thank you for your questions Marvin.
Speaker 1: Thank you for your questions, Babin. Our next question comes from Greg Burns of Sidity. Greg, your line is now open.
Our next question comes from Greg Burns of Sidoti Greg. Your line is now open.
Good morning.
Speaker 4: Good morning. Just looking at the guide, I guess like the midpoint of the EBITDA margin is around 39%. I think you had previously messaged last quarter about targeting over 40% EBITDA margins. Can you just talk about what's implied in the guidance and is that a function of just the mix of revenue that you see going forward?
I'm just looking at the guide I guess like the midpoint of the EBITDA margin is.
It's around 39% I think you had previously message.
Last quarter Bob.
Targeting over 40% EBITDA margins can you just talk about what's implied in the guidance and is that a function of just the mix of revenue that you see going forward.
I think the exact midpoint, it's 39 at the high end of the range its the 40%.
Speaker 3: I think at the exact midpoint, it's 39. At the high end of the range, it's the 40%. I believe, based on what you see in those Q4 results, that we achieved 40%, even on margin. We believe that we're gonna be able to achieve that for the year in 2022. You know, that percentage, it's part of a range, and it's a small range based on a, you know, a 300.
I believe based on your CNS Q4 results that we achieved 40% EBITA margin, we believe that we're going to be able to achieve that for the year in 2022.
You know that percentages, it's part of our range and it's a small range based on.
A 300.
Speaker 3: $15 million number, it's a fairly small and historically been a pretty accurate range, so I just think it's just rounding.
$15 million number it's a fairly small and it historically historically been a pretty accurate range. So I just think it's just rounding.
Okay.
Speaker 4: And then when we look at the customer metrics, what percent of those customers are utilizing kind of the priority engine for a sales use case? I'm just trying to get a sense of where we are in terms of.
And then when we look at the <unk>.
The customer metrics what percent of those customers are utilizing kind of priority engine for a sales used case I'm just trying to get a sense of where you are in terms of.
Starting to penetrate that market and how much of your business is currently tied to that sales use case.
Speaker 4: starting to penetrate that market and how much of your business is currently tied to that sales use case.
Yes, that's a good question so.
Speaker 3: Yeah, that's a good question. So like we watched the updated version in Q4, so I think in a.
We watched the updated version in Q4, so I think.
In the past sales, we're using a priority engine, while we didn't have it any seat license type of arrangement on that so that is brand new.
Speaker 3: Sales were using a priority engine, but we didn't have any seat license type of arrangement on that. So that is brand new.
Speaker 3: So there's a difference. People were using it, but we weren't necessarily monetizing it by this modular approach. Starting in Q1, we have the marketing use case, and now we have the sales use case where we're starting to, you know, sell it based on the features and functionality, the workflow, the user interface, and also see licenses for sales reps. So it's very early. We've seen.
So there's a difference people were using it but we werent necessarily monetizing it but as module approach starting in Q1, we have the marketing marketing our use case and now we have the sales use case, where we're starting to.
Solid based on the features and functionality of the workflow of the user interface and also seat licenses for sales reps. So it's very early we've seen <unk>.
Speaker 3: strong adoption on this. And as we go through the year, we'll continue to monitor that. But the appetite is there for salespeople to get access to the data that we have been delivering to marketing departments. They want it in a different manner. So this has been a good move for both our customers and for us to have a modular approach that really suits the need for what our customers need.
<unk> and as we go through the year, we'll continue to monitor that but the appetite is there for salespeople to get them to get access to the data that we have been delivering to marketing departments. They want it in a different manner. So this has been a good move for both our customers and for us to have a modular approach that really suits them.
Need for what our customer needs. It most of the times our customers wanted for both marketing and sales. So when you have that situation and you have the same da data being delivered cut up and you know.
Speaker 3: And most of the times, our customers want it for both marketing and sales. So when you have that situation, and you have the same data being delivered and cut up and, you know...
Speaker 3: delivered to each of the constituents in the way they need it and want it and consume it, that should be a really good positive tailwind for us.
Delivered to each of the constituents and the way they need it and want it and consume it that should be a really good positive tailwind for us.
Speaker 2: Yeah, and that's very early days and why we're excited about it is we have the opportunity.
Yes, Okay very early days and why we're excited about it because we have the opportunity to.
<unk> sell the sales version to all of our marketing use case customers that we have a separate module.
Speaker 2: sell the sales version to all of our marketing use case customers, now we have a separate module. And historically, we've always focused on selling to the 1,500 largest IT organizations that had a sophisticated enough marketing organization to take advantage of our services. But now with the sales use case, we think that opens up the market to about 18,000 software companies.
And historically, we've always focused on time to the.
<unk> thousand 500 largest IQ organizations that had a sophisticated enough marketing organization to take advantage of our services, but now with the sales use case, we think that opens up the market to about 18000 software companies. So a huge expansion of our Tam by having a separate sales module available to sell.
Speaker 2: So a huge expansion of our team by having this separate sales module available to sell. But in terms of your question, it's top of the first inning, very early days.
In terms of your question is it.
The first thing.
Early days.
Okay, great. Thank you.
Perfect. Thank you for your questions Greg.
Speaker 1: Perfect. Thank you for your questions, Greg. Our next question comes from Jason Crayer of Craig Hallam. Jason, your line is now open.
Our next question comes from Jason <unk> of Craig Hallum, Jason Your line is now open.
Okay.
Speaker 6: Thank you guys. I wanted to stay with that same theme. So just, just going back to that platform upgrade from November , wanted to see if there's any early feedback that you've been provided. And then maybe if you can just talk about the selling process as you go to market to a marketing team versus going to market to a sales team and just curious if there are any particular challenges going to the sales teams or, or any particular like benefits as you go in separately, just kind of what your sales guys are seeing as they go to market.
Thank you guys I wanted to stay with that same theme. So just going back to that platform upgrade from November wanted to see if theres any early feedback that you've been provided and then maybe if you can just talk about the selling process as you go to market to a marketing team versus go into market to our sales team and just curious if there are any.
Particular challenges going into the sales teams or or any particular like benefited Hugo and separately just kind of what your sales guys are seeing as they go to market separately.
Yes, Jason that's a good question in terms of the selling process. Many times, we will continue to work with marketing and have them bring in their sales counterpart.
Speaker 3: Right. Yeah, Jason, that's a good question. In terms of the selling process, many times we'll continue to work with marketing and have them bring in their sales counterpart.
And when you can get marketing and sales on the same page or an in line in line with an investment that they are going to make that's a win win for everybody. So ourselves will go and they'll work on the Mark Mark will show how they use their their data from priority engine and what they're doing and what they are looking for we will bring in or asked to be brought in.
Speaker 3: When you get marketing and sales on the same page or in line with an investment that they're going to make, that's a win-win for everybody. So our sellers will go in, they'll work on the marketing, we'll show how they use their...
Speaker 3: their data from Priority Engine and what they're doing and what they're looking for. We'll bring in or ask to be brought in the head of inside sales, a sales executive, show them the data, show how we can carve it up and portray this and showcase this for both of their use cases, and it works pretty well.
The head of inside sales or sales executive show them. The data show, how we can carve it up.
Portray this and showcase this for both of their use cases, and it works pretty well now.
Speaker 3: If, you know, if a marketing person doesn't want to, you know, buy the solution from us, that doesn't say that our teams won't go to a sales leader and go in through the sales door as well, and then work inversely, and go back to sales, and then go back to marketing later on. But having them get a seat at the table together.
Martin person doesn't want to.
By the solution from us that doesn't say that our teams will go to a sales leader and go in to the sales door as well and then working inversely and go back sales and then go back to marketing later on but having them get a seat at the table together to talk about how the data in the platform can work for both of them.
Speaker 3: To talk about how the data and the platform can work for both of their needs and their KPIs is a pretty powerful sales meeting, and it's a high get it factor.
Their needs and their Kpis is a pretty powerful sales meeting and it's the I get it factor in terms of.
Your other question was base it was sort of a follow up to the previous one where we are we are fairly early innings on this.
Speaker 3: Your other question was sort of a follow-up to the previous one, where we are fairly early innings on this. We watched the sales use case, the early results of our launch, which is in Q4, it's only been a month or two, is that we've seen an uptick in sales usage.
We have been what we watch the sales use case the early results of our launch which was in Q4, it's only been a month or two is that we've seen it uptick in sales usage and engagement and what we'll do is we'll look at how often sales reps are in the tool how long they are and it's all how many patients when they are in the plan.
Speaker 3: and engagement. And what we'll do is we'll look at how often sales reps are in the tool, how long they're in the tool, how many pages when they're in the platform are they looking at. Early signs first inning very positive.
Or are they looking at early signs for sending very positive.
Speaker 6: As you look at that process longer term, I'm just curious because you talked about, you know, you've got, you're going in to a sales opportunity with a marketing guy and with the sales guy. Do you envision having some of your sales reps being equipped to, you know, sell both the sales and the marketing? And do you see that as kind of an opportunity to maybe have better success going into these opportunities?
As you look at that process longer term I'm, just curious because you've talked about you've got.
Youre going in to a sales opportunity with a marketing guy and with the sales Guy do you envision having some of your sales reps being equipped to sell.
Sell both the sales and the marketing and do you see that as kind of an opportunity to maybe have better success going into these opportunities.
Speaker 3: Yes, our reps will sell both the sales and marketing if that was your question.
Yes.
Our reps will sell both the sales and marketing dose if that was your question and.
Speaker 3: Getting those guys together is a good dynamic to have. So our sales teams will walk in, we'll have one sales rep on our side, engage in the account, work with marketing, work with the client sales team together, then bring them in together, and then say, okay, here's how it works for both of you. And I think that's kind of the playbook that will land out.
Getting those guys to gather is going to be.
Good dynamic to have so our sales teams will work in we will have one sales rep on our side.
Engaged in the account work with marketing work with their with our client sales team together and then bring them together and then say okay. Here's how it works for both of you and I think thats, the thats kind of the playbook that we're laying out.
Speaker 6: Okay, okay. You clarified that. Thank you. And then I just wanted to understand this content to closed solution a little bit better. You kind of alluded to it earlier, but wondering if you can talk more about just that go to market process. Yeah, that's a
Okay. Okay, you clarified that thank you and then I just wanted to understand this content to closed solution a little bit better you kind of alluded to it earlier, but wondering if you can talk more about just that go to market process.
Yes, that's a good question so.
Speaker 3: Based on what we have to offer today, it's pretty unique. I don't think there's anybody else that can do it.
Based on what we have to offer today, it's pretty unique.
Sure.
Does anybody else that can do it.
Speaker 3: Through our analysts and our publishers and market experts, we now have the ability, and we're actually doing this, of engaging with accounts at different levels and early in this whole cycle. So as accounts are looking at...
Our analysts and our publishers market experts, we now have the ability and we're actually doing this.
Engaging with accounts at different levels and early in this whole cycle.
So as accounts are looking at.
Speaker 3: organizing and trying to figure out their strategic method.
Organizing and trying to figure out their strategic messaging and what's their play in the market they need to do that with relevant content.
Speaker 3: and what's their play in the market, they need to do that with relevant content.
Speaker 3: And so being able to have an analyst group, our publishers, our market experts, working with those customers, but at different levels within heads of product, C-levels, you know, AR, like different avenues within those accounts, they're helping them craft and create their concept to a content strategy. And now being able to take that content...
And so being able to have an analyst growth. Our publishers are market experts working with those customers, but at different levels within heads of product C levels.
Like different avenues within those accounts, they're helping them craft and create their concept to our content strategy and now being able to take that content.
Speaker 3: and implement it into a purchase intent-led sales and marketing enablement program, whether it's through virtual events, webinars, custom content, case studies, customs content syndication, and all the way through to the platform where we're engaging and identifying and delivering.
And implementing it into eight.
Purchase intent led sales and marketing enablement program, whether it's through virtual events Webinars custom content case studies customers content syndication and all the way through to the platform, where we're engaging in identifying and delivering.
Speaker 3: which accounts and which buyers that they should prioritize and sell to in order to help them close. And by this year, we'll really have a focus on tighter integrations into our customers' workflow to help with a bidirectional data feed, to help them with their opportunities and pipeline and close one launch reports. We have that strategic end-to-end campaign.
Which accounts in which buyers that they should prioritize and sell to in order to help them close.
This year, we really haven't focused on tighter integration into our customers' workflow to help with a bidirectional data feed to help them with their opportunities and pipeline and closed one loss reports, we have that strategic end to end campaign.
Almost closed loop capability from content to again, helping our customers close more business.
Speaker 3: almost closed-loop capability from content to again helping our customers close more business.
And sorry to keep asking questions, but I'm, just curious because that content to close occurs earlier in that life cycle, how do you monetize the solution.
Speaker 6: And sorry to keep asking questions, but I'm just curious because that content to close occurs earlier in that life cycle. How do you monetize this solution?
Well, we will be charging for our customers all need really good content.
Speaker 3: Well, we will be charging for the car. Our customers all need really good content. And it's really hard for our customers to generate and produce really good content.
And it's really hard for our customers to generate and produce really good content.
Speaker 3: And so our opportunity here is our Custom Content and Analyst Division to go in there and say, we understand your markets, we understand your competitive landscape. We also understand the technology landscape, the validation opportunity. So when we go out there and help with this content creation arm.
And so our opportunity here is our custom content and analysts division to go in there and say we understand your markets. We understand the competitive landscape. We also wanted to stand the technology landscape the validation opportunity. So when we go out there and help this content creation arm.
Speaker 3: We're going to charge them for that. But there's a big value for our customers because they don't want to go out there and...
Got to charge them for that but there is a big value for our customers because they don't want to go out there and.
Use.
Speaker 3: ineffective content, hire more content producers when they can have the really good strategists like us helping them craft that. As the content gets billed, it's in a multimedia format, it then needs to get executed through a campaign. Hence, that's where the Bright Talk and Tech Target and Xtelj, all this stuff comes in where we can have that integrated campaign to help them engage with permission based
Ineffective content higher more content producers when they get out.
Really good strategist like us helping them craft that as the content gets built it's in a multimedia format that needs to get executed through a campaign, hence that's where the bright talk in tech target Nextel of it also comes in where we can have that integrated campaign to help them engage with permission based.
Speaker 3: you know, audience members that we own and then help close the loop on the back end with a platform priority engine to show them, you know, better attribution and ROI.
You know audience members that we own and then how close the loop on the back of the platform priority engine to show them better attribution and ROI.
Got it helpful. Thank you.
Speaker 1: Thanks for your questions Jason. Our next question comes from Brian Virgin of Cowan. Brian , your line is now open.
Thanks for your questions. Jason next question comes from Bryan Bergin of Cowen Brian . Your line is now open.
Speaker 5: Hi, good morning guys, thank you. First one, can you provide an update on specific initiatives underway to expand the international presence? Maybe talk about regions that are highest priority for you and any key barriers to consider.
Hi, Good morning, guys. Thank you.
First one can you provide an update on specific initiatives underway to expand the international presence maybe talk about regions that our highest priority for you and any key barriers to consider.
Speaker 3: Yep, Brian , on the international side, you know, we are in throughout EMEA.
Yes, Brian on the international side, we are in.
Our EMEA.
Offices in Singapore Sydney.
Speaker 3: Offices in Singapore, Sydney, Mexico, and
Mexico.
And India.
Speaker 3: And, you know, right now we still have a lot of room in those areas, so.
And.
Right now we still have a lot we still have a lot of room in those areas. So.
Speaker 3: The other reason why we made the acquisition of BrightTalk is that they had offices in very similar areas, too. So we're in the right places. We're still seeing a big transition from face-to-face. You look at the international business, and you look at the tailwinds that we talk about in the catalyst, and this whole shift from face-to-face to online, that was really prominent in the international markets, throughout EMEA and throughout APJ.
The other reason why we made the acquisition of Wright talk is that they are offices and very similar areas too. So we feel we're in the right places.
We're still seeing a big transition from face to face or as you look at the international business and you look at the tailwind that we talked about in the catalyst in this whole shift from face to face so online that was really.
Prominent in the international markets throughout EMEA and through on a P. J, so being able to go out there and focus on grabbing those we'll call field marketing dollars.
Speaker 3: Being able to go out there and focus on grabbing those, we'll call it field marketing dollars, enablement dollars, bringing them online and digital, we have a long way to go on that and we're seeing good success and our international business is, you know, growing at a healthy rate. We'll continue to invest.
Enablement dollars, bringing them online and digital we have a long way to go on that and we're seeing good success in our international business.
As you know growing at a healthy healthy rate will continue to invest.
Speaker 3: in those same regions right now with more sales, marketing, customer success.
In those same regions right now.
With more sales marketing.
Customer success.
Speaker 3: Because, again, as we roll out Priority Engine and we get to the international pieces where it's more of a sales use case, we'll need more support, which we've already lined up in the budget, to help support sales users in those regions as well. So we're going to stick in those regions and continue to focus on that because we still have a long way to go.
Because again as we rollout priority engine and we get to the international pieces, where it's more of a sales used case will need more support which we are already lined up in the budget to help support sales users in those regions as well so we're going to stick in those regions and continue to focus on that because we still have a long way to go.
Speaker 7: Okay, helpful. And then what's the underlying growth target for priority engine in that 2022 outlook? And just following up on one of the prior questions around potential online to face to face shift, can you help us just frame how you think about normalized growth pace in the non priority engine business?
Okay helpful and then whats the underlying growth target for priority engine in that 2022 outlook and just following up on one of the prior questions around potential online to face to face ship. How can you help us just frame how to think about normalized growth pace in the non priority engine business over time.
Yes, that's a good question.
Speaker 3: Yeah, that's a good question. I, you know, I, I think with the priority engine numbers.
I think with the priority engine numbers.
You know, we would probably say very similar to the overall numbers high teens to 20% growth.
Speaker 3: You know, we would probably say, you know, very similar to the overall numbers, high teams to 20% growth.
<unk>.
Again, we are in.
Then in terms of the.
Online numbers outside of priority engine.
Speaker 3: Yeah, pretty similar. I mean, we have a really large, as we mentioned, like.
Pretty similar I mean, we have a really large.
<unk> like <unk>.
Speaker 3: To me, all of our products are purchase intent led, first party purchase intent led.
EMEA jet like our all of our products our purchase intent led first party purchase intent led.
Speaker 3: So we're seeing good growth across the me engine, which is more your content syndication and also through our branding elements because of our own and operated sites, Google limited third party cookies, people really wanna focus on trusted and verified audience members, that's really important. So I would say we see the overall growth, very similar to the non-product side, 20% non-priority engine products and 20% plus as well.
So we're seeing good growth across the EMEA region, which is more of your content syndication and also through our branding elements because of our own.
Sides, Google Limited third party cookies people really want to focus on trusted and verified audience members that that's really important so I would say we would see the overall growth very similar to the non.
Non product side, 20% non priority engine products of 20% plus as well.
Okay. Thanks, just a quick one on margins. So the key is to hitting that 40% EBITDA margin level, just to talk about mix in GM versus potential SG&A leverage.
Speaker 7: Okay, thanks. Just a quick one on margins. So the keys to hitting that 40% EBITDA margin level, just talk about mix and GM versus potential SG&A leverage.
Speaker 3: You know, the margins are consistent across all the products that it's all revenue growth. The operating leverage that we have, if we hit our revenue targets, we'll hit up 40 percent. If we exceed them, we'll beat the 40 percent.
The margins are consistent across all the product set.
Our revenue growth the operating leverage that we have we hit our revenue targets, we will hit our 40% we exceed them, we will be at the 40%.
Thank you very much.
Speaker 1: Thank you for your questions Brian . Our next question comes from Joshua Riley of Needham. Joshua, your line is now open.
Okay. Thank you for your questions Brian .
Our next question comes from Joshua Reilly of Needham Joshua Your line is now one item.
Hey, guys. Thanks for taking my question.
Speaker 8: Hey, guys, thanks for taking my questions. So starting off, we've seen generally strong results from big legacy tech, as well as some of the more modern cloud vendors. Is that consistent with what you're seeing in terms of spending by customer segment? And then what are you hearing from?
So starting off we have seen generally strong results from big legacy taxes as well as some of the more modern cloud vendors.
That consistent with what Youre seeing in terms of spending by customer segment and then what are you hearing from.
Just more broadly customers in terms of their willingness to grow their spend.
Speaker 8: you know, more broadly customers in terms of their willingness to grow their spend over the coming year given some of the economic uncertainty now with interest
Over the coming year, given some of the economic uncertainty now with interest rates.
Speaker 3: Yeah, uh, Joshua, in terms of, um, big tech.
Yes, Joshua in terms of.
Big tax.
Speaker 3: And, you know, bro, I would say this week, we have about, we have a legacy.
And growth I would say this week we.
We have about we have a legacy.
Speaker 3: global ten accounts. Now, those aren't our largest accounts, but those are, you know,
Global 10 accounts now those on our largest accounts, but those are you know.
What you just called Big leg is big Tech legacy accounts and non represent about.
Speaker 3: what you just call big tech legacy accounts, and those represent about, you know.
Speaker 3: 17 to 20% of our overall business within any quarter. And they're growing at a decent rate. Everything else.
17% to 20% of our overall business within any quarter and theyre growing at a decent rate.
Everything else.
Speaker 3: all the way to the other 2,600 customers, we're seeing a good balance across all of them. D.C.-backed, large...
All the way through the other 2600 customers.
We're seeing a good balance across all of them VC backed large.
Speaker 3: SAS-based organizations. So right now, I would say, I would summarize it. By every region, by every product mix, and by every customer class, it's been really well-balanced and really exceeded expectations. Going to your second question in terms of growth, is there any concern out there in the market? I know the inflation numbers came out today, and they were high, you know, you're hearing about cost pressures. We, for us, based
SaaS based organizations. So right now I would say I would summarize it by every region by every product mix and by every customer class, it's been really well balanced and really exceeded expectations going to your second question in terms of growth is there any concern out there in the market I know the inflation numbers came out today and they will.
You're hearing about cost pressures.
We for us.
Based on the way our business is set up.
Speaker 3: It's not directly impacting us today, where you might see something if it impacts some of our customers where their, where their, their cost models are falling off or getting a little bit tough. But as of right now, we have had no signs that our customers are slowing down.
Not directly impacting us today.
You might see something if it impacts some of our customers where there were there the cost models have fallen off or getting a little bit tough, but as of right. Now we have had no signs that our customers are slowing down investing in.
Speaker 3: Investing in, you know, intent-led, you know, purchase-intent-driven marketing and sales solutions to help grow their market share, they do understand it's really critical for them to be in front of audiences at all times. And if you look at the dynamics of our customer base over the last 10 years,
Intent led led.
Event, driven marketing and sales solutions to help grow their market share. They do understand it's really critical for them to be in front of audiences at all times and if you look at the dynamics of our customer base over the last 10 years, it's changed dramatically it used to be we used to have a predominantly at all.
Speaker 3: it's changed dramatically. It used to be we used to have a predominantly all on-prem hardware, some software types that would be selling units. Now most of our customers are SaaS-based, cloud-based.
On Prem hardware some software types that will be selling units now most of our customers are SaaS based cloud based.
Speaker 3: They're selling solutions and their customers are running their businesses on those solutions. So that definitely plays into our advantage in terms of the whole evolution of the enterprise IT market and where it is today. So right now, I don't see any pullback and
<unk> solutions in the air customers.
We are running their businesses on those solutions. So that definitely plays into our advantage in terms of the whole evolution of the enterprise market and where it is today so.
Right now I don't see any pullback.
Speaker 3: All indicators saying it's going to be a good year for us based on the guidance that we put up.
All indicators, saying it is going to be a good year for us based on the result based on the guidance that we put up.
Speaker 8: Okay, great. And then one more for me here. When you look at the annual net revenue retention of 150% for 2021, clearly a lot of that was driven by having BrightTalk to cross-sell for the first time. Going forward though, what do you guys think is a more sustainable rate for NRR here? And then should we expect another strong year given the penetration of BrightTalk still as early into the core tech target?
Okay, Great and then one more for me here when you look at the annual net revenue retention of 150% for 2021, clearly a lot of that was driven by having bright tack to cross sell for the first time going forward, though what do you guys think is a more sustainable rate for NR here and then should we expect another strong year given the <unk>.
On attrition of <unk> still is early into the core tech target customer base.
Speaker 3: Yeah, I think I've mentioned two things in the NRR number, the 150% number. I mean, as I mentioned earlier, the huge benefit of the acquisition was, you know.
Yes, I think.
I've mentioned two things on the NR number the 150% number I mean as I mentioned earlier.
The huge benefit of the acquisition was.
Speaker 3: being able to have existing customers become more engaged and spend more with our combined offerings, that whole complimentary product suite.
Being able to have existing customers become more engaged and spend more of our combined offerings at all complimentary product suite virtual events Webinars content syndication is huge so this really played out the way we thought when we were on the call last year, we talked about the benefits of this acquisition why we're doing this.
Speaker 3: virtual events, webinars, content syndication was huge. So this really played out the way we thought. When we were on the call last year, we talked about the benefits of this acquisition, why we're doing this acquisition, selling to the same customers, and moving forward from there and seeing success. That has proven out. In terms of expectations, I would say that if I'm looking at this a year down the road, I would think that the expectations would be
And selling to the same customers.
Moving forward from there and seeing success that has proven out.
In terms of expectations.
I would say that if I'm looking at this a year down the road I would think that the expectations would be the strong ones that we had in 2020 in 2019.
Speaker 3: The strong ones that we had in 2020 and 2019, about 120%. We'll see how this plays out. But they're going to be healthy either way. But the 150% really did help validate the thesis of why we made this acquisition and that it's working.
About 120%, we'll see how this plays out, but they're going to be healthy either way.
But the 150% and are really did help validate the thesis of why we made this acquisition and that it's working.
Got it thanks guys.
Thank you.
Speaker 1: Thank you for your questions Joshua. Our next question comes from Eric Martinuzzi of Lake Street. Eric, your line is now open.
Thank you for your question as Joshua Our next question comes from Eric <unk> of Lake Street, Eric Your line is now open.
Speaker 9: Just a clarification and then a question. On the revenue guidance, is there any adjusted revenue in either the Q1 or the 2022 revenue guidance?
Just a clarification and then a question on the revenue guidance is there any adjusted revenue in either Q1 or the 2022 revenue guidance.
Speaker 3: what revenue? I just did. No, that's all GAAP revenue.
I think what revenue adjusted now that's all GAAP revenue.
Okay.
Alright, and then on the.
Speaker 9: All right. And then I'm curious on the headcount. Where did we finish the headcount at the end of 2021? And then what's the plan for investing in headcount in 2022? Where does that go to by the end of the year?
Curious on the head count where do we finish the head count.
The end of 2021, and then what's the plan for investing in head count in 2022, where does that go to by the end of the year.
Speaker 3: Our headcount was roughly approximately $1,000. Eric, I don't have the exact number on. And we are hiring and still we expect the headcount to go up. That headcount to go up 10% this year.
Our head count was down.
Roughly approximately a thousand Eric I don't have the exact number on and.
We are hiring and still we expect that head count to go up.
Net head count to go up 10% this year.
Okay, and the primary focus of the hiring.
Speaker 3: Product development, customer success, sales.
Product development customer success sales.
Speaker 5: All right, that covers the waterfront. Thanks, guys. Thanks.
Alright that covers the waterfront thanks guys.
Thanks.
Thank you for your questions Eric.
Our next question comes from Pendulum Bureau of J P. Morgan Pendulum. Your line is now open.
Speaker 1: Our next question comes from Pindulim Borah of JP Morgan. Pindulim, your line is now open.
Oh, great. Thank you for squeezing me in.
Speaker 10: Most of my questions have been answered but one question that I have was when I'm doing an organic kind of calculation, I know you don't give inorganic control.
Most of my questions have been answered, but one question that I had was when I'm doing an organic kind of calculation I know you don't give inorganic contributions, but it seems like the guidance implies about an 18%.
Speaker 10: growth, which should be a little bit of a deceleration from, say, mid-20s organic growth last year.
Growth, which which should be a little bit of a deceleration from say mid <unk> organic growth last year.
Speaker 10: You obviously have a new sales product. You outlined the four trends out there, which I'm guessing it's actually, most of them are actually strengthening. Is there an outside chance that that organic growth, you know, everything, everything
You, obviously have a new sales product you outlined the four trends out there, which.
Guessing it's actually most of them are actually strengthening.
Is there an outside chance that that organic growth.
Everything.
<unk> done at the end of the year could actually be close to 25% or accelerate or would you say this is Jim.
The law of large number and it's bound to decelerate.
Speaker 3: A couple of things on that. Yeah, we don't we didn't break out as we talked about the last call our organic versus, you know, combined. But in terms of growth, like, if you look at the business, and you look at our improved business profile over the years, even pre pandemic at a smaller number, we were growing in high single digits to low double digits.
Yes couple of things on that yes, we don't we didn't break out as we talked about in our last call.
Organic versus.
Combined but in terms of like if you look at the business and you look at our improved business profile over the years, even pre pandemic at a smaller number we were growing at high single digits to low double digits and now were at high teens.
Speaker 3: And now we're at high teens, we're, you know, to 20% growth. So our whole business profile has improved tremendously, almost 2X. Now you have larger numbers, you know, back then we're $120 million, $115 million company, we're $300 million organization now. But to answer your question, you know, this is, you know, a range that we see, that we feel that we can meet. Now,
Up to 20% growth. So are our business profile has improved tremendously almost two weeks now you have larger numbers back then were $120 million $115 million company were 300 million dollar organization now.
But to answer your question. This is a range that we see that we feel that we can meet now.
Yes.
Speaker 3: Increased improvements and you know the markets and you know, everything works perfectly the adoption, you know on the sales use case
Increased improvements in the markets.
Everything works perfectly the adoption on the sales use case could there be upside to the number there could be but we're on January February 10th right now and we're trying to provide the best guidance at what I would call what we call internally at a two <unk> improvement of the business profile from a few years ago.
Speaker 3: Could there be upside to the number? There could be. But we're on January , February 10th right now, and we're trying to provide the best guidance at what I would call, what we call internally, at a two X improvement of the business profile from a few years ago based on the growth rates at larger numbers. I think this is a really good.
Based on the growth rates at larger numbers.
I think this is a really good <unk>.
Speaker 3: Projection, forecast, and we're going to hopefully go execute, hit, and beat it.
<unk> forecasts and we're going to hopefully go execute hit beat it.
Got it thank you very much.
Thank you for your questions pendulum.
Speaker 1: At this time we currently have no further questions, therefore this concludes today's call. You may now disconnect your lines and have a lovely day.
At this time, we currently have no further questions. Therefore this concludes today's call you may now disconnect your lines and have a lovely day.
Speaker 11: ?? ?? ?? ?? ?? ?? ??
Okay.
Okay.
[music].
Okay.
Yes.
Sure.