Q1 2023 MongoDB Inc Earnings Call
Questions and congrats to the team on a really outstanding set of results in Q1, I wanted to pick up on some of the dynamics of how long ago DB grows versus some of the other data platforms.
In the enterprise software space.
And so Dave when you think about potentially heading into a slowdown for the balance of the year, how does that sort of operational I think you've sort of discussed this in your script about thinking about Atlas as a portfolio of applications to what extent is there ability for customers who may have to be.
More operation efficient themselves to ration usage of Mongo DB the way they might do with a date.
Data warehousing solution or potentially a log analytics solution to what to what extent can they do that.
Just if you sort of walk through how does the slowdown.
Potentially get reflected among a D D model versus some of the other data platforms.
Yeah, Hi, Thanks for the question. So what I would say is first of all you know.
We the value we provide as well are well aligned with the value customers derived from their applications. In fact, when we talk to our customers. They are developing teams and obviously given the senior executives get upset if their applications are not being used sufficiently because by definition. They have built an application to improve our customer experience.
<unk> to enable new capabilities to drive more operational efficiency through increased automation. So that people are not using their applications something has gone wrong. So the more they use the application the more value. They are seeing so there's a direct correlation between the value they get from the apps running on longer the b and the value we get from those customers.
Other software companies that you mentioned I think are being forced to consider alternatives to be because there's a trend where there's a slight mismatch between price to value because as they suck in more data, it's not completely clear how much incremental value of that data is providing so we don't see that problem. What we do see is a second order effects.
And customers.
Maybe slowing down the usage of those applications it could be consumer applications it could be.
Trading applications could be a broad variety of applications and what we're seeing of the second order effects and as both Mike and I mentioned right now.
Those effects more on the self serve and the lower end of the market primarily in Europe , but thats why we have it.
Some judgment to give you the guidance that we have provided.
Thank you David and that framework.
<unk> was very very useful in terms of thinking about.
Some of the some of the puts and takes going on going onto the rest of the year.
We think in this sort of new regime.
And by higher interest rates, which had an impact on valuation in multiples.
Two questions. There as you think about operating the business and sort of you mentioned that as being a steward of capital. How are you thinking about operating longer you'd be in the sort of newer regime with respect to the growth versus profitability tradeoffs and then the corollary to that is that there's more software companies that might be interesting that might look.
Significantly cheaper than they were before so if you can talk to you about how this might impair.
Impact your thinking on M&A that's it.
That's it for me I really appreciate the year.
Sure. Thanks, Sanjay so on the first question in terms of how do we think about the business we frankly.
Our remaining fairly consistent obviously.
We're focused on the fundamentals we know we have a great product, we are expanding and innovating the product set every day Youll youll hear about some great announcements next week, hopefully you and others on this call can can attend the conference next week and so we feel really good about our product roadmap and investments, we're making and a lot of that roadmap roadmap is driven by direct customer feedback.
So we know that as we build these new capabilities there'll be drive even greater adoption of <unk> to be in these organizations.
And.
We've also said that we have a tiny share of the market we're vastly underpenetrated.
I have a really seasoned team, we know how to execute and so where we're continuing to add more capacity to our sales organization across all the different geos and segments. Now we look at all of these investments constantly where coffee evaluating our investments to making sure. We're getting the right returns and if we see a certain team not performing we are going to slow down.
Investments and really dig in as to what's going on there.
And I would say that.
We are just obviously going to continue to do that and be very careful Mike and I have been around a.
A long time, so we've seen the vicissitudes of the different markets and.
And we know that it's important to be disciplined and maintain our focus with regards to your second question around.
You were hinting at M&A first I, just want to say that the organic opportunity for US is amazing we still have tiny share.
We are we are remaining.
Very very focused on growing our business.
A huge opportunity to acquire lots of customers and we also have a lot of headroom in those customer accounts to grow our share of wallet.
As well that being said.
Clearly there could be some opportunities that arise we will be very disciplined.
Potentially look at companies that potentially accelerate our product roadmap.
Because there'll be a classic buy versus build decision.
So look at ways that maybe we can get access to unique talent.
And maybe we will also look at ways to expand it to adjacencies that maybe we're in a longer term roadmap that if an opportunity presents itself that we would consider but right now we're really focused on the organic opportunity because we still see a big opportunity in front of us.
I appreciate all the thoughts thanks guys.
Thank you Sanjay.
Thank you next question comes from Brad Reback.
Of Stifel.
Please proceed.
Great. Thanks, very much maybe getting a little tactical with the first question.
Any sense of what consumption trends look like in the month of May from a high level were they consistent with April or did they change and they change across the customer base at all.
Yes, sure. So just to quickly recap for everyone. What we described in terms of what we saw in Q1 was a moderation in the growth in the latter part of the quarter, particularly among self.
Self serve and mid market, primarily in EMEA and that slower growth in Europe that slower growth masked the underlying usage activity of the application and is consistent with that macro slowdown we saw.
Very strong new business.
Throughout.
And we saw no increases in churn.
In May when you scroll forward and say, okay that was the behavior at the latter part of Q1 anything incrementally changed in Q2 in May I think the only things worth calling out in may were that that slower self serve growth started to manifest itself in the U S and was not contained to Europe and then.
The second thing I would say is as it relates to Europe Europe .
Europe did not.
Grow more slowly that do not further deteriorate.
EMEA has stabilized.
And that's really kind of the key incremental insight for the early may data.
That's great Super helpful. And then Dave maybe from a high level, obviously Atlas is the key to growth here going forward and it's been a phenomenal engine.
As you look forward do you think it can become 90% of the business down the road or 80% maybe.
Maybe I'm getting ahead of the analyst day here, but any way to sort of.
Besides that up thanks.
Yes, I would say Brad that.
Atlas is the key growth engine for our business you will expect us to definitely get to those kinds of share of revenue over time, I'm not ready to commit as to how quickly that will happen as you know.
Our EA business is quite strong we still have lots of large customers who are aggressively deploying our EA product.
And we.
We don't see that.
Changing with our installed base, but but clearly the long term trend is for Atlas to become a bigger bigger piece of our business. There is no question about that.
Awesome, Thanks, very much guys.
Thanks, Brett.
Thank you next question comes from Raimo <unk> of Barclays. Please proceed.
Okay.
Yeah.
Raimo, we can't hear you if you're on mute.
Yes.
Sorry about that thank.
Thank you.
The question I had is like.
As we kind of.
You talked about the macro volatility et cetera, what are you seeing in terms of.
People speaking about migration project strong like the higher cost.
Oracle et cetera in this sort of environment.
Demand driver for you or do you see that slowing down because people are just kind of more important looking like how do I have to think about that because that was something that was kind of really start to get good momentum.
No as you mentioned.
And our sales could be ours at the beginning of Q2, there's a lot of.
Our confidence about the option to win new business one of those areas is potentially.
Going after a lot of the legacy Tech stacks, who are very expensive very brittle.
And in some ways this macro environment can be a catalyst for them to potentially.
Re platform off those legacy platforms. We have many use cases, where we can we can should demonstrate 40% plus cost savings off the existing tech stack and also allows the customer to be in a much more modern agile and scalable infrastructure. So it's not going to be the only sales motion, we pursue but clearly.
The sales motion there.
We will.
Especially at the large enterprise.
Have a lot of focus on.
Okay, and then one follow up for Michael.
If you think about the changing environment can you talk a little bit about your approach to investment in the <unk>.
I'm curious like how how much is the macro environment kind of driving the investment in the different parts of the investment can you just speak to that in terms of like the flexibility that you're after.
All the best.
Yes, certainly so I think our general approach to investment has been specifically oriented towards the long term and we've talked about this many times over the years that we've taken this approach to sort of balance of sustainable growth. If you will we're very early on and penetrating our market.
Entity and so it continues to make sense to build out our footprint covered specifically within.
The sales and market side, we have very very thin footprint coverage.
We have exceptionally high win rates for transactions. When we are in the mix and we just want to make sure. We're in them enough. We continue to like the unit economics and the returns that we're getting on those investments.
And as Dave and I have mentioned many times before we monitor those very closely and very Granularly, that's not a that's not a newer recent behavior at Mongo DB, but it's one that we've observed for many many years and then on the R&D side.
We'll talk obviously more about at <unk> World.
We're continuing to build out the platform we have made.
Meaningful investments in R&D and we've gotten good returns on those those take a little longer to prove out and aren't quite as easy to model in a spreadsheet, but if you look at obviously in launching and building amount going to be in the first place.
Launching Atlas several years ago now expanding the platform et cetera, we feel really good about what we're seeing in the customer adoption.
And as David mentioned, a lot of our roadmap is really customer driven.
And so we continue to see good returns there and so we're not radically alter.
Altering our perception to try and keep up with either of the current market environment or.
<unk> current investor sentiment under the view that we as the long term stewards of the business need to have.
On outlook and our goal is to sort of maximize the long term opportunity and that's what we're continuing to do.
Okay. Thank you.
Thank you.
The next question comes from Brett <unk> of Piper Sandler.
Please proceed.
Thank you good afternoon.
First question here, Michael a little surprised to see Atlas gross I think for the fourth straight quarter remained above 80%. We've seen other consumption models start to see bigger moderations can you just parse out the durability of Atlas growth across <unk>.
New workloads in existing workloads you flagged.
Potential slowdown that you expect in the piece of new workloads this quarter in self serve and mid market.
Do you see any sort of big major changes to existing customers that are running on Atlas just trying to parse those two parts of the business.
Is the consumption durability different for new versus existing.
Yes, so most of the growth in any given quarter. It comes from the applications that you have at the beginning of the quarter.
And when we talk about sort of the.
What we expect kind of cohort behavior that is what we're speaking about there's very little.
Generally.
Generalizing, but theres very little.
The impact of new applications have because there's new workloads tend to start smaller.
Unless it's a large migration or something like that and so we do.
Those trends that we were describing about that slower growth from the existing.
Applications in self serve and mid market in Europe are describing that pattern that behavior in terms of looking ahead and trying to apply our best judgment about where do we see things happening in the latter part.
The remainder of this year.
We're assuming that self serve moderation in growth.
That moved in May from only being in Europe to being in the U S. We're assuming that that persists, we're assuming that the mid market mirrors.
That behavior in terms of migrating from EMEA to the U S and that that exhibits that slower growth that we've seen in Europe in the <unk> market and we're also assuming that the enterprise is not immune to these macroeconomic factors, although they tend to be not as affected as much and that's what leads to.
The impact on the full year, and so that a little more than 1% sequential headwind on Atlas that's about $2 million.
<unk> quantified and then given the compounding of Atlas growth rate winds up being about $4 million to $5 million of an impact in Q2.
When you add into further compounding and then the broadening as we're assuming wind up being about 30% to $35 million.
For the full year, obviously I'd also throw in as Youre, starting to talk about kind of durability, usually that means people thinking about growth rates, we've talked about sort of the strength.
In outlet growth in Q3 and in Q4 in particular, so the back half of the year also has very strong comparables. When you start to think about year over year growth rates and everything else, but the sort of underlying fundamentals.
Outlets continue to be quite strong.
The new new business market has been very strong as we win new workloads.
And the existing workloads are growing just not quite as robustly.
As we have historically seen so hopefully that's helpful. Brian .
Helpful color a lot of detail just a quick follow up for Dave here.
Yet.
Again risk into the forecast makes a ton of sense, but direct customer growth was still up 45% added 4400, new direct customers what's driving.
Enterprise adoption. So far are you seeing any sort of change and I suspect, we'll hear a lot more from customers next week, but what are you hearing on on the enterprise side given.
Those metrics there continue to be very strong.
Yes, so Brent what I'd say is in some ways, what I said in the prepared remarks as companies continue to embed software into their value proposition they need to.
Build those custom software applications on a more modern platform that enables them to innovate quickly.
Clearly proven that especially during COVID-19 that the fastest way to.
Digital presence is to use among the DB.
We enable a broad set of workloads. So people don't have to learn new technologies and have a very convoluted back end architecture and for those applications that need.
It really.
Pushed the limits of performance and scale. There is no other platform that's better so when it comes to all of those things we feel like we're really well positioned.
And I would tell you that.
Our sales force is quite bullish about.
The opportunity to win new workloads.
For those exact reasons and.
And and that's why we feel really good about the long term health of this business.
Got it very clear thank you.
I would just add Brent maybe just sort of go back to your other question just to make sure that it's clear that we think about the behavior of new workloads and then the growth of existing workloads, obviously the growth of existing workloads is most relevant in the short term when you think about the long term impact of the long term opportunity.
The biggest growth driver there is winning of new workloads.
You were sort of indicating.
Thank you next question comes from Phil Winslow of Credit Suisse.
Please proceed.
Hey, guys. Thanks for taking my question Congrats on a strong start to the year, you've talked about different demands being placed on databases from simple key value look ups complex analytics aggregations graph trends versus et cetera.
Contracts, you've talked about the industry moving towards the concept of just multimodal.
Databases, obviously, you've had some pretty significant enhancement enhancements there.
With search comes to mind, obviously, what are you hearing from customers about as we're consolidating multiple data models on the market would you be especially as let's say budgets get tightened people look to consolidate consolidate vendors and then Michael.
Michael in terms of a follow up I appreciate the color on self service in mid market, but curious you've had a lot of success on these focus very large accounts, just curious what youre seeing and hearing from them.
Sure.
Thanks, Bill So so first of all I would tell you that.
That is core to our strategy is to enable customers to run more and more types of workloads on longer that would be we think the document model is truly the best way to work with data and we enable so many different capabilities to your point Keith.
Key value graph time series search et cetera, and we continue to build out the platform stay stay tuned for some really interesting and cool announcements next week hopefully you can attend.
And.
It's part and parcel of our strategy and we think that message is even more.
Irrelevant.
And has more residents in a in a more challenging macro environment, because the cost of learning managing and supporting all of these bespoke technologies just becomes untenable for most customers most no customer I talked to wants to run.
Let alone four versus 717 different databases and so the fact that they can consolidate onto one platform have one elegant development developer experience one unified data set of data.
As well as a platform that can scale to support.
The most demanding requirements becomes very attractive and all by the way also runs across different cloud providers right. So not.
But not limited to any one cloud provider or they have a diversity of geographic coverage. So for all those reasons, we feel like we're really well positioned especially in an environment, where these individual point solutions will look far less attractive.
Michael you want to fill in your question on the focus yes, yes, yes.
On your question on our focus accounts we've seen.
Very good progress on those as a reminder, these are accounts, where there's already cleared of all going to be.
Attraction attraction and so the focus here is increasing our footprint within those accounts right. So this is really about expanding new workloads.
Gaining additional mission critical.
Applications, perhaps penetrating other business lines our divisions.
Within the account.
It's something that we're now in the third year of doing we've continued to expand that to a wider and wider range of accounts and gotten more and more intelligent what prerequisites needed to be.
In place in order to make sure that as we add the additional resources around those accounts that we can get the most out of those and so far we've been very pleased.
Awesome. Thanks, guys see you next week.
Terrific. Thanks Bill.
Thank you next question comes from Karl Keirstead of UBS.
Please proceed okay, okay, great. Thanks.
Michael just to put my my positive hat on here Youre absorbing a $30 million to $35 million revenue hit in fiscal 'twenty three but you raised your full year revenue guidance by $11 million. So that tells me that ex the macro impact.
Youre actually raising by 41% to $46 million, which is substantially above the Q1 beat and substantially above the full year guidance raise last April quarter. So clearly something is going very right in the business. So I wanted to ask you.
What that is what one or two things that contributed to that ex macro.
<unk> raised thank you.
Yes, Thanks, Carl No we feel really good about the business as both Dave and I have talked about in the prepared remarks, when we think about.
The market opportunity that we're going after the product market fit of the success that we're having within accounts, whether thats Atlas accounts, which obviously get a lot of the headlines, but as you've seen over the last probably three quarters.
The strength and resilience of EMEA, as well and people, who want to still self manage and aren't ready for public cloud adoption.
Regardless of sort of mode of consumption of our engagement with us the <unk> to be value prop resonates and so again I think it mostly just speaks to the size of the market. The success that we're having.
I always worry about words like.
Inflection or some of these other things, but we're seeing real.
Traction in accounts that I think about the breadth of use cases the types of workloads. The mission criticality that were that were being selected for whether it's a de novo application or a migration of an existing application.
Speaks to the traction and success that we're having in the market and then overlay that with.
A lot of just good execution and market. It all adds up to a very positive picture.
Got it okay. Thanks, and then.
Go ahead, sorry, Carl I, just wanted to add a couple of data points.
Our software software has now been downloaded at least from our side alone 265 million times that's more.
More downloads.
Downloads this year than the first 11 years of the company's history. The second thing is the platform message is really resonating to the earlier question customers want to consolidate on the leading platform and we're seeing a lot of interest.
And demand from customers to consolidate more and more workloads on top of them on the DB and the third data point is that we're seeing broad based performance across our sales force.
But we're not in a sales organization, where there's 80 20 rule, where 20% of the salespeople are killing it and 80% are trying to get their first deal. We are really seeing broad based performance across the sales organization, which gives us again incremental confidence about.
Pursuing this large market opportunity.
Great and then maybe as a follow up David Mike one of the risks that I was trying to evaluate and I think investors were.
So it was basically mongo DB its exposure to call. It the nexgen cloud Internet Fintech companies kind of loosely the coin basis of the world you are well aware that snowflake called out that customer cohort as hitting.
Hitting the brakes on spending and that translated to a usage hit first snowflake did that cohort.
<unk> your revenue performance in the quarter and maybe you could comment about your exposure to that group I think that might be of interest. Thank you.
Yes. So the short answer is no we didn't see any impact from that cohort.
I'd tell you again.
A database or.
Or LTP platform is very different than a data warehouse, we are really well aligned to the value that customers derive from their site or their application or or the platform and so.
No.
Strong.
Alignment, there and we feel really good about our business because it is highly diversified.
We have no real revenue concentration.
And we have customers.
We have.
Company you mentioned, we have six times as many of our customers as they do so we're highly diversified across industries geo sectors.
And customer segment types.
Okay, great. Thanks for that.
Thanks Carl.
Thank you. The next question comes from Jason <unk> of William Blair.
Please proceed.
Thank you.
Just to be clear guys have you seen any leading indicators or warning signs in the enterprise market.
And then beyond usage of existing apps.
Have you seen any impact on new App starts.
The short answer is we have not seen any signs sorry.
Alright.
Alright.
Maybe I'll start and then you can add.
The short answer is we're not seeing any impact on the enterprise side and our.
In terms of acquisition of new workloads was very strong in Q1, and so on both fronts, we feel good about the business, but again.
Michael's comments earlier, where we're not presuming that this <unk>.
Macroeconomic impact is just going to be limited to the low end. So we are assuming that there will be some.
But modest impact to the high end of the market.
Gotcha, Okay, Michael do you want to say something.
No that was it.
Exact same thing.
Alright, and then one quick follow up just on the previous question I know that.
Talk to talk about some of the Fintech and the crypto stuff, but.
When you talked about may being a little slower in the U S kind of in the mid market self serve.
Some of that is kind of the silicon Valley.
Let's say bubble, but just a lot of these startups, maybe are pulling back and we start to see some layoffs.
Theres, obviously, some some revaluation going on did you see any of that and do you expect that to be.
A significant headwind.
Yes, so I would say that the the.
The modest pullback in growth rates, we saw was not around like pricing optimizations of the infrastructure is really a second order effects of their own app growth. So that's so it's not about them shutting down apps or them turning off.
Parts of the infrastructure, it's really moderation of the expansion rates of those applications again databases are not things that you turn on and turn off and frankly, even if a startup is having.
Challenges, we will be there most of the startups have built among <unk>. That's their main business. So the last thing they're going to shut off.
Is going to be the among the <unk> application and again I want to remind you that our customer base is highly highly diversified our exposure to the this early stage market is quite low and.
And again, we would be in the must have category in terms of expenditures.
And just to clarify.
Jason just to clarify what we said in terms of the incremental observations that we've seen from the early may results.
Or just that self service.
<unk> started to mirror self service in the U S started to mirror the patterns.
Self service in EMEA, not the mid market just to be clear avoid any confusion there.
Understood. Thank you guys. Good luck.
Sure.
Thank you Jason.
Yeah.
Thank you.
Our next question comes from <unk>.
Cash rondon.
Goldman Sachs. Please proceed.
Alright, Thank you very much congrats on the quarter.
Just to get your perspective, Dave or Mike.
Michael whoever wants to jump in when you look at the consumption side of the business.
Say what.
<unk>.
Are the sensitivities that youre modeling, if we enter a slow economic environment.
The best way to think about what kinds of industries, maybe that's.
Or what kinds of use cases do you anticipate.
Slower consumption growth rates, how does your model behavior in response to those kinds of changes are you.
Are you capped with respect to the downside in the event that boost consumption trends start to go south.
How does your model.
Zig zag with what's happening at the customer level what degree of installation.
To ensure that your business is protected thank you so much.
Yes, sure we talked about this in the end what really drives the consumption is the underlying behavior of the customers application.
So they don't tend to be these extreme.
Changes.
If I look back to Covid, which is the early startup covered which is probably the greatest point of short term disruption even in that period. What we saw was a sort of broad based but modest decline in the growth rate.
So.
And even in covered when you had very specific situations as it related to travel and hospitality industries and everything else, we still wound up finding those people needing to.
Pivot and adapt their business and I remember.
Doing well.
A meaningful deal with a large U S airline, which is sort of shocking in those early days.
Other things and so I.
I think it's more about broadly mapping the macroeconomic activity as opposed to some.
No.
Much more abrupt.
<unk> up or down I think partly that's the benefit of having a very diversified customer base.
Not just geographically not just by industry.
And size of company and everything else, but also by application and so we've talked about this behavior before the same kinds of things that.
Prevent people from flying drive people indoors and to do more gaming or so as you have a larger and larger portfolio.
You may not be perfectly hedged are perfectly offset but there is a wide range of different underlying macro factors that drive.
Different use cases at different directions, and again thats the benefit of having a large portfolio across tens and tens of thousands of.
Customers and across the breadth of use cases, and so I think the best thing to say is that.
Closely mapped it approximates.
What we see in terms of underlying application usage, which most directly tied to macroeconomic activity.
Got it very very clear.
With respect to your modeling is there any consideration at all to make the model, maybe a bit more subscription like in bit less consumption since the economic downturn.
Little bit more and predictably too.
Consumption models, not that's totally okay, but just curious to get your perspective on any changes that you might be contemplating.
Yes, I think for customers.
One of the value propositions that they appreciate about cloud products is you only pay for what you consume I think for us compared to some others, it's not quite.
As big an issue or as big a disconnect because the value associated with the consumption is so directly tied to the value that they're getting out of the application.
That thats.
We don't really tend to suffer from some of the divergences that other people do in terms of what happens with runaway consumption and therefore bills that seem quite disproportionate relative to the value and so I think it's a fairly at this point fundamental part of cloud business models is that you're only paying for what you consume.
And so I wouldn't foresee any near term changes to that.
Thanks, Michael.
Thank you.
The next question comes from Fred Meyer.
Meyer from Mcguire.
Please proceed.
Hey.
Hey, Thank you very much.
Congratulations on the Q1 results I wanted to ask about.
All of US have asked about consumption trends, but I'm curious to ask about some of the pre committed trends or consumption plans that we had discussed I recall that a couple of quarters ago didn't outsize cohort of customers that decided to pre purchase some substantial quantities.
Utilization just ahead of their own expansion and net new workload plans. So when we're talking about the consumption trends that you were discussing of course in the self serve channel.
Do you see any sort of change in the cadence of consumption or plans or expansion or net new workloads that are coming online with its existing customers you have that already had expansion plans in place.
Yes, thanks for that no in general what we see for folks who are willing.
Want to make commitments.
There is obviously a high degree of confidence in their deployments and usage and so we see very robust consumption patterns with those folks typically even when your consume even when you are committing in excess of current consumption.
You are usually not committing in excess of intended consumption.
So whether that's the customer and you believe in application is growing or you know youre going to be moving over a bunch of other applications.
So the underlying consumption behaviors in those customers continues to perform well.
Okay. Thank you and then if I can get one more in here I just like to ask you also recently launched.
Self service adoption through or adoption through TCP as another channel I just wanted to ask generally how are those cloud channels progressing across.
The self serve market places there.
Yes, so so we've launched.
We're on the console of both the GTP and AWS and the early signs are very promising.
Obviously it allows us to access as you can imagine both of those companies have incredibly large customer bases and people are on the console is all the time, so now that when they do a search.
Formality be they'll see Atlas and so so the early signs have been very promising and it's just additive channel for us.
Dave Michael Thank you.
Thank you Fred.
Thank you that concludes our time of Q&A.
I will now pass the conference back over to Dave.
Sorry for closing remarks.
Thanks Danielle.
Again, thank you for your time I just wanted to reiterate we had an excellent quarter customers across different industries geos segments are using more going to be to run. The most mission critical workloads, our confidence in winning new business continues to be high we remain on track to deliver another year of strong growth as well as improving profitability in spite of a more challenging macroeconomic.
And last but not least I would like to invite all of you to our investor session that we are going to have on June 7th in New York City at marketing World with that thank you for your time today take care Bye bye.
The conference call. Thank you for your participation you may now disconnect your lines.