Q2 2022 BTRS Holdings Inc Earnings Call
Good afternoon, ladies and gentlemen, thank you for standing by welcome to build Trust second quarter 2022 earnings Conference call. As a reminder, this conference call is being recorded I would now.
I'd like to turn the call over to John T. Williams head of Investor Relations to begin.
Thank you operator before we begin I'll remind you that today's call may contain forward looking statements, including our full year 2022 outlook the duration of the secular tailwind our expectations regarding the underlying trends in our business and our expectations and assumptions regarding our medium and long term targets. These forward looking statements are subject to numerous.
Risks and uncertainties, including those set forth in our most recent annual report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission on March nine 2022, and in subsequent reports that we file with the Securities and Exchange Commission from time to time that are available on the Investor Relations section of our website.
Including our quarterly report on Form 10-Q for the quarter ended June 32022.
Actual results may differ materially from any forward looking statements. We make today. These forward looking statements speak only as of today and the company does not assume any obligation or intend to update them, except as required by law. In addition, todays call may include non-GAAP measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measure.
A.
A reconciliation to the nearest GAAP measure can be found in today's earnings release, which is available on our web site hosting todays call are Flint Lane, Bill trusts, founder and Chief Executive Officer, and Mark shifting Bill trusts, Chief Financial Officer, I will now turn the call over to <unk> to begin.
Thanks, John and thank you everyone for joining the call today I am excited to share with you our results for the second quarter, which once again show incredible momentum across our business before I do I want to say just how proud I am of our amazing and talented <unk> team they've stayed laser focused on meeting our customers' needs and growing the business in a very challenge.
The macro environment, the unique build trust culture and values don't show up on our financial statements, but are a key part of Bill Trust success over the last two decades.
I'd like to start with some operational metrics and then I'll cover some recent business highlights our CFO . Mark 50, then will provide details on our performance and updated 2022 guidance.
I couldnt be happier about our Q2 performance I'm excited to report that we continued to execute against our plan and outperform relative to internal and external expectations. Despite the reported macroeconomic and market challenges the favorable secular trends around digitization and BTB payments are strong.
Software and payments segment growth of 35, 4% year over year was incredibly strong and drove highly profitable adjusted gross margins of 74, 1% up 241 basis points year over year.
Our total payment volume or TPB, which is the dollar value of customer payment transactions that we process on our platform increased 40% year over year to $26 2 billion.
Versus $18 8 billion in the year ago quarter.
<unk> sort of the business payments network or VPN, TBD increased 71% year over year in Q2 against the tough prior year comparison.
<unk> grew $2 4 billion in Q2 up 38% year over year, while <unk> growth continued to ramp higher to $1 1 billion.
A smaller contributor, but it more than tripled year over year.
Direct card revenue or <unk>, which is the revenue we generate from processing credit card payments through all of our solutions was $5 8 million or 57% year over year growth in our quarterly yield of six six basis points.
We are very happy with how our payments business is progressing with direct card revenue growth once again exceeding card volume growth and we still expect yield will grow into the teens over the long term helped by transaction growth on our payback.
And our new surcharges solutions now.
Now lets cover some observations and recent business highlights.
<unk> said before that in difficult economic environments. We believe CFO are naturally more aggressive in seeking out ways to increase efficiencies reduce complexity and accelerate cash flow all challenges that are solved by our software and payment solutions and we see this every day as our customers look to us for new ideas.
In June we were thrilled to host our annual Bill Trust insight event, where build trust customers and partners could interact and learn how to maximize the value of build trust solutions, we discussed actionable ideas across the whole spectrum, including best practices. They are automation trends shaping the future of the CFO office and the impact of virtual cards.
On our customers' day to day operations.
We also announced a new version of our popular online billing portal that makes it incredibly easy for our suppliers to accept credit cards without directly incurring card and fees through something called surcharges roughly half of our online billing customers don't accept credit cards today and believe we believe this is a big opportunity.
We have some customers live already and are landing new deals with this innovative approach to card acceptance, we covered a lot at insight and I encourage you to visit our website and watch the session replace they'll show you. How we are delivering innovation and why our customers are so happy with what we provide.
Also in June we hosted our first virtual investor session, where members of our senior leadership team spent an afternoon doing a deep dive into each of their areas of expertise. In addition, our president Steve Panaro interview, John Shellenberger, SVP of finance and Sunbelt rentals. They discussed the difficulties placed on AAR organizations by the acceleration.
Of AP solutions, and how the build trust solutions helped streamline their operation five.
Finally, we provided some updated guidance on our path to profitability, which has been which has been an area of investor interest over the last six months and the topic Mark will address in his prepared remarks.
I'd like to I'd now like to update you on our great sales performance to provide context, we had our highest sales bookings quarter ever in the fourth quarter of 2021 than in the first quarter of this year, we signed the most new customers ever and in this last quarter. We broke both those records with most the most bookings in the most new customers signed in the quarter contributing to this.
Great momentum our wins on a new collections platform acquired as part of the Icontrol acquisition now let me share a few customer specific stories.
Our relationship with <unk> is a great example of our relentless focus on driving customer success.
<unk> is the largest privately owned distributor of specialty building materials in the United States, a high growth company with more than 400 operating locations nationwide. They have acquired several existing build trust customer over the years as a result, we recently partnered to deliver credit invoicing payments, Andy invoice connect across their entire enterprise.
These existing relationships allowed their leadership to clearly see the benefits of working with build trust and how we align with them to drive success.
Another customer that has seen clear benefits from build trust is mainland are Raymond company, and a leading material handling equipment distributor happy and growing business payments network customer mainland finance manager a harless told us during a build trust insight session in June about his company success, and now being able to automatically invoice into accounts payable portals through BP.
Then.
And he told us that the term AP portal fatigue is an understatement and we know it's a major issue for back office teams to manually input invoices into customers' AP portals like Cooper or a rebound.
He also told us that the number of mainland customers using portals is growing every single week, but it's no longer something that stress about or even think about invoice delivery through VPN helped Eddie and his team overcome the struggled to support their customers' diverse invoice delivery and payment requirements and thanks to build trust no. One on his team is doing manual invoice entry.
We've also made great strides on the partner front and our recent partnership with proceeds software makers of our heavy duty truck and commercial vehicle dealer management system is a powerful example of how our solutions can integrate with other systems to maximize supplier of electronic payments.
<unk> software is now integrated with exceed proceeds dealer management software and offers their customers a complete solution for automated electronic invoicing and digital payments as well as our access to our business payments network, enabling them to avoid the labor and expense manually king invoice data and giving the ability to accept payments through their preferred channels.
<unk>.
One of the big growth areas to build trust is the business payments network or VPN I'd like to take a few minutes to discuss why is a core part of our strategy first <unk> is a truly open network and our impressive roster of partners, including visa JP Morgan Chase Cooper American Express and over 30, others, coupled with our position as the only open <unk>.
Payments network that publishes volume and growth rates as clear evidence of our leadership position versus our competition second we believe that digital lock box will be a must have for any IR department much like online billing sites are the BPL digital lockbox automates, the receipts of ACTH credit card and wire transfer payments and also.
For delivery of invoices into or 150 different AP portals.
We've seen huge interest to hear from our customers banks and the card brands.
Ultimately, we believe our competitive advantage with VPN comes from our origins and the accounts receivable space, our understanding of it and our set of capabilities developed over the last 20 plus years around how to solve for supplier pinpoints, particularly the acceptance of electronic payment methods acceptance on the supplier side of the transaction represents a significant barrier to the dessert.
Sensation of BTB payments and we believe we have all the tools to overcome this barrier and are in fact solving for it over and over again as evidenced by our growth in collaboration with World Class Partners. We were first to market. We were born from the supplier side and we made the decision to open up our capabilities to partners from the beginning.
All of these factors have been the key ingredients to our success, which we expect to only continue into the future in a market in which <unk> opportunity remains incredibly large.
We're all we're very excited about the rest of the year and beyond and have a strong supplier and partner pipeline. We also remain very focused on profitable growth expanding gross margins and driving cash flow and are equally committed to managing expenses and protecting our strong balance sheet as we aim to meet or exceed the profitability timing that we recently laid out.
A key theme that I, often point back to an earnings and Investor calls is that we continue to do the things. We said we do given the current macroeconomic environment. That's been a challenge for many I'd like to reiterate the strength of our position we have a solid balance sheet zero debt accelerating growth and we believe we are well positioned to win because we have the best solutions that are designed to consistently deliver great.
<unk> for our customers.
Our automation and Digitization solution seek to address the urgent problems that CFO and back offices are currently facing like high labor costs rising interest rates supply chain challenges market volatility volatility and work from anywhere trends simply put we believe we are ideally positioned to deliver with so many businesses need we.
These large secular tailwind will persist for some time, we have been and will continue to be aggressive and take advantage of these opportunities with that I'll hand, it over to our CFO Mark shifting to discuss our second quarter results and updated financial outlook.
Thanks, Lynn and good afternoon, everyone. As flip noted we're very pleased with our strong Q2 results on a year over year basis net revenue grew 28, 5% software and payments segment revenue grew 35, 4% and adjusted gross profit grew 32, 9%, reflecting an adjusted gross.
Margin of 74, 1%.
241 basis point expansion versus Q2 2021.
Our highly profitable software and payments segment was again the major driver of margin expansion with 85% segment gross margins in the quarter.
We would like to note that during the quarter movement in the euro relative to the dollar represented an approximately $250000 headwind compared to our original forecast.
On an organic basis net revenue in the quarter was $36 9 million.
Year over year increase of 16, 9% from the year ago period software and payments revenue was $30 5 million a year over year increase of 24% and adjusted gross profit was $27 8 million a year.
Year over year increase of 22, 6%.
Strong net dollar retention and growth in car TPB indirect card revenue, where again key contributors to our strong performance.
As expected Q2 print revenue declined three 5% to $4 3 million as print.
Volumes continue their shift to digital.
Nevertheless, our print gross margins continue to expand year over year, as we create greater operational efficiency and manage costs closely in this declining revenue segment.
Services and other revenue was $3 million.
Up 18, 6% year over year.
Adjusted EBITDA was a loss of $4 2 million.
Versus a loss of $3 million in <unk>.
<unk> 2021.
Modestly better than our expectations, excluding stock based comp and other add backs to adjusted EBITDA operating expenses were $34 3 million.
Up 34% year over year and in line with our expectations for the.
The year over year increase reflects the first full quarter.
<unk> of our European operations, and the impact of second half hires last year, we continue to expect lower adjusted EBITDA losses in the second half relative to the first half of the year as we position ourselves to become adjusted EBITDA positive over the course of next year, which I will discuss in further detail shortly.
Excluding stock based comp and other add backs to adjusted EBITDA Research and development expenses were $14 1 million versus $10 1 million in the prior year period, driven by product development labor costs and incremental European R&D expenses that were not in our results last year.
Sales and marketing expenses were $10 $7 million.
Versus $8 8 million in the prior year period, primarily due to additional investments in direct sales and channel distribution efforts.
We are very pleased the results of these investments, where we continue to maintain greater than six to one LTV to CAC.
<unk> to grow highly profitable software and payments revenue Gen.
General and administrative expenses were $9 5 million versus $6 7 million in Q2 2021 with most of that increase attributable to supporting our international expansion.
We ended the quarter with $148 million in cash and equivalents and short term marketable securities on our balance sheet and no debt.
Our share count at quarter end was 164 million basic shares and 171 million fully diluted shares, including Rfu's and all estimated current potentially issuable common shares tied to in the money employee options.
Now on to our full year 2022 guidance, we are raising the lower end of the guidance range of each of our net revenue at our software and payments segment revenue by $1 million.
We now expect 2022, net revenue of $166 million to $171 million or $168 $5 million at the midpoint and software and payments segment revenue of 134 to 139 billion.
Our $136 $5 million at the midpoint, our adjusted gross margin in Q2 exceeded our expectations and we now believe that outperformance should be sustainable for the remainder of the year, our new projected full year adjusted gross margin range.
93, 7% to 74, 1% or 73, 9% at the midpoint.
Now expect adjusted gross profit of 122, 5% to $126 5 million or $124 5 million at the midpoint.
We plan to reinvest that excess profitability into the business. This year and continue to expect adjusted EBITDA.
Negative $14 million to negative $16 million.
Negative $15 million at the midpoint.
And updating our guidance we are balancing our belief that the underlying trends in our business will remain strong throughout the remainder of the year with a recognition that we are operating in a highly volatile global macro environment. In addition, while our European operations are doing well on a constant currency basis, we are factoring in a remainder of the year.
<unk> $700000 to $1 million foreign currency headwind to our revenue.
As for our medium and long term outlooks, we now expect to be free cash flow positive for full year 2023, and as recently updated in June . We also expect to be adjusted EBITDA positive sometime during the second or third quarter of 2023, and adjusted EBITDA positive for the full year 2024.
These targets of course exclude the impact of any future M&A and assume no major macroeconomic disruption that might cause us to reevaluate our strategy or spending.
As Colin said earlier, we believe <unk> could not be in a better position than we are today and we will continue to be focused and disciplined as we drive results over the remainder of the year beyond thanks again for joining the call and we're happy to answer your questions. Operator, Please open the lines.
We will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you'll hear Kevin acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.
I'll pause for a moment as Colin has joined the queue.
Okay.
The first question is from Bob Napoli from William Blair. Please go ahead.
Thank you good afternoon nice job.
Thanks, Mark good to see Steve and team. So just a question I think you said that this quarter was the largest.
Bookings quarter, and the largest number of new customers added can you maybe give a little more color on the momentum in sales and what has been driving.
The momentum and do you see that do you have visibility on that continuing into 2000 and the.
<unk> three has there been a macro any macro hit to the momentum there.
Yes sure Thanks, Bob for the question.
Yes, I think there is a variety of things that are coming into play here certainly there is increased focus on.
<unk> the office of the CFO right. The CFO organization is under a lot of pressure related to cost and we have a variety of solutions that help there.
We are.
I have talked a lot over the last two years about our increased emphasis on sales and marketing.
Pending there.
<unk> is just purely execution our team is doing really well, we've got great people, who know how to scale.
Is manifesting itself in.
A lot of sales success.
Certainly we don't think that this is.
Ending anytime soon where we're getting modest contributions from the partner channel, which we've shared in the past, we think will be a big contributor in the future.
And with the total addressable market that we're going after there's plenty of room for us to grow.
Thank you.
And then just on the direct card revenue has some pretty good momentum.
Software and payments into direct card revenue.
Is that what is primarily driving your confidence that the high margin as our high margin products and turning profitable.
And the timeline that you suggested.
And also.
The confidence in your long term operating model it.
So any just any commentary around confidence in the long term operating model direct card revenue software and payments driving is that what's driving the visibility to your.
Turning profitable.
Following the market, yes, sorry go ahead.
Okay. It's a few things at play.
Yeah.
We were on a trajectory already I mean, our business model was to be adjusted EBITDA positive. This is not a <unk>.
Page and direction for US we are accelerating.
Bit the timeframe in which we want to achieve that.
What we're seeing in terms of the visibility is not just the direct card revenue, but the incredible strength of our software platform. So it is a great. It's great to have a platform with that integrated capability.
Leading with either software or payments and then letting the other one come along as part of that land and expand relationships. So the direct card revenue continues to grow at a great pace TPB continues to grow at a great pace, we haven't seen anything.
Changing that trajectory and then software seems to be doing fantastic and as Glenn said, we're in an environment, where cfos like myself are looking for opportunities for greater efficiency.
Our cost and Thats exactly playing to our strength. So it really is a combination.
Getting to where we wanted to get to it was really moderating some of the expenditures that we were having that had perhaps a longer term payback and we're focusing more on more immediate.
One to two year horizon, not necessarily three and beyond and that is what we're doing we're not we don't have to get rid of employees colleagues we.
Have a great growth platform and we're just managing the growth of our expense.
Great. Thank you appreciate it.
Yep.
The next question is from Ken San Guang from J P. Morgan. Please go ahead.
Yes. Thank you so much good results here, especially on the gross profit gross margin it looks like you've been pretty bullish here in your commentary.
<unk> had like I was talking about the momentum from our bookings and new sales perspective, and I hear the caution as well you recognize.
The macro so I'm just trying to think about how you are.
Weighing all of those things as you adjust your outlook it looks like you.
We raised the bottom end on some of the items, but I'm curious just your confidence level here.
And.
Sort of keeping that momentum going versus conservatism or are you banking a lot of this upside and reinvesting to insure getting to those earlier profitability targets just just China.
Read between the lines and understand the outlook a little bit better if that makes sense. Thanks.
Thanks, Tien tsin.
Yes, I think we have tried as a public company too.
Share with investors, what we think is going to happen and then more importantly go do that.
As the years progress, we'd like to tighten the range you can give more certainty.
Because we have a good sense of what's going on in our world and we can be pretty predictive there.
When things like.
FX come into play and we don't have a good predictor on that we can be less certain about those guidance, but we've factored in.
What kind of FX headwinds, we could get and still raised our guidance so without the effects of FX, perhaps we would've been more bold, but theres some uncertainty there.
What is in our control is our execution and it starts with.
Making sure we're investing in our solutions, making sure we're investing in our go to market strategy and then consistently delivering on sales success in the financial results. So we have proven over the year and a half or so of being a public company that.
We have accelerated our growth.
Creased, our profit margins demonstrated a path to profitability and just announced.
Next year, we'll be cash flow positive. So I think this is what we want is the business and I think investors will appreciate that as well.
Yes for sure and then just my quick follow up I guess I have to ask you about consolidation we've seen some.
Consolidation in the sector a lot of press around consolidation as well I know you've done a few acquisitions yourselves. So I'm just curious.
<unk> updated thinking around consolidation.
As a theme here fun.
Yeah, we're looking at acquisitions as a big part of.
Our strategy long term as you know we have done two acquisitions in the last eight or nine months and those are going well private valuations have started to come down along with their public comps. So we are.
Looking at a lot of different things and we think.
Averaging one to two deals a year is something that we want to focus on but we want to do the right deals not just doing deals for the sake of doing deals.
Got you. Thank you for the time.
Thanks, David.
Okay.
The next question is from Andrew Schmidt from Citi. Please go ahead.
Hey, guys. Thanks for taking my questions and good steady quarter here.
I wanted to dig into the sales momentum here.
No.
It seems like to me that there is clearly a step up in terms of opportunities here just because you have.
Pretty significantly enhance your distribution, maybe you can comment on that and then I guess the corollary.
Has your have your win rates.
So of course correspondingly stepped up as you reinvest in the platform add more modules things like that just just any can give us in terms of breadth of opportunities you see versus when rates any color there would be helpful. Thanks.
Okay.
Yeah, we don't publicly share what our win rates are we do track that internally sometimes.
Sometimes that can be misleading if youre looking at opportunities that are not been what we call our target customer profile like we're not going after new BDC business for instance, but those opportunities do present themselves, but we do know is when we invest in sales and marketing we do get a return on that and we measure that.
And that's our LTV to CAC ratio, which is generally north of north.
North of six.
Yes.
Most of the execution has been from build trust personnel and our own sales and marketing.
Efforts, we have shared that we've got lots of partner opportunities that we're pursuing many of which we've announced over the last 12 months.
Those take a little longer to ramp up but those will start contributing.
In the second half of this year. So there's no reason why we can't continue to grow our execution sales marketing just on the backs of our own team and we think the partner approach will help turbocharge that getting back to the point around the total addressable market. There is plenty of market to go around.
We would we'd love to beat our competition every single time, but that is not required we win when we win.
It is healthy to have competition to keep them on making us on their toes, but nobody stacks up to our sets of solutions Nobody has things like the business payments network nobody has the capabilities around our digital lock box of our integrated receivable set so we're very very happy with our competitive positioning, but we don't need all of our competitors to go away for us to succeed we just need to continue to drive sales successes.
Financial success.
Yes. Thank you that makes a lot of sense I appreciate that.
And then I guess another question just on visibility I know that's been a theme here. It seems like you guys have pretty good visibility heading into the back half into next year, but.
One of the things when I think about visibility.
Payment volumes and clearly I'm, a believer in the secular growth year.
And that should continue but payments.
Payment volumes are influenced by economic activity. So if you could just maybe discuss.
What youre seeing.
At a.
Industry level in terms of customer behavior, whether you've seen any changes in that.
What you are baking in for the back half.
Just given the macro uncertainty any color there would be helpful. Thanks a lot.
Mark you want take a shot at that.
Sure.
Andrew we have we have seen nothing at a macro level that.
Affecting our models.
Round growth in paint.
Payment volumes and overall TBD I think we're seeing clearly the.
Impacts in certain sectors of the economy.
From interest rate changes.
Some slowdowns, but overall, it's not affecting our customer base. So we do believe everything we're seeing is a continuation of strong growth as.
As we get to next year.
If next year is.
<unk> different ballgame from where we are today, we'll have to reevaluate things, but we see nothing on the horizon that should be impacting the growth.
<unk> for the remainder of the year.
Perfect. Thank you Mark I appreciate the comments you had a good quarter.
Sure.
The next question is from <unk> Tandon from Needham. Please go ahead.
Thank you Clinton Mark congrats on the quarter.
Linda I wanted to just maybe if you could dissect the bookings a little bit more in detail given the strong activity.
See any strength in certain markets specific verticals or was it pretty broad based any color around the bookings trends would be helpful.
The only thing we teased out is we are having success with our new collections platform that we got as part of the Icontrol acquisition back in October .
And they had very little success in the U S. They really weren't focused there, but we've been successful in cross selling that into our into our U S base, but.
But we've had.
We have a variety of different sales go to market motions as you know we.
Sell into our customers quite aggressively we have a new logo team we have vertical teams that go after specific verticals and.
I wouldn't point to any of them sort of carrying the day. It was strong success across the entire team.
Got it.
I know youre not seeing it right now just given your confidence in your projections, but I think one of the questions. We've been getting of course is just around churn.
For our companies. So maybe if you could give us any perspective are you seeing any changes there has it been pretty stable what sort of expectations do you have in terms of churn or retention rates of your customers that's embedded in your guidance.
It sure does not something build trust has ever experienced a lot of.
We offer incredibly sticky service and we drive we try really hard to.
Make our customers happy and deliver positive outcomes. All the time you were one of the few soft SaaS SaaS businesses that doesn't have a retention team as you know our contracts just automatically renew each year.
And we don't see a lot of churn occasionally somebody will get bought or will go bankruptcy. We will see some churns that we don't have a lot of legacy <unk> business, which turns a little bit.
Turns faster, but there's not a lot of that left so theres nothing that we would point to that says.
Churn is going to change.
Change is high Ninety's in terms of retention already so there's nothing of concern to us Mark anything you want to add.
No I think it goes back to your answer to an earlier question and maybe this is also somewhat of a response to Andrew's question as well as this one.
We recognize that these risks do exist in the market is highly volatile and so we <unk>.
Factor that into how we think about the guide and the extent to which we would raise the upper end of the range versus tightening at the lower end, where we're saying yeah, we feel actually really good about things but.
We're not oblivious to the fact that these risks exist.
We factored them in as we as we believe in a prudent manner and as.
As Glenn said and I'll say, we're not seeing any of that today, but.
That's how we that's how we factored in.
Makes sense. Thank you so much.
Thank you.
The next question is from Sanjay <unk> from <unk>. Please go ahead.
Thanks, most of my questions have been asked but maybe I'll just.
Refresh some of the questions and see if I can get a better answer just maybe if we think about the business historically in periods of economic weakness.
How does the business behave like I mean, how should we think about.
Choppy or macro and how it impacts your business I understand plant you mentioned mid accelerates how your customers might think about automation, but what have you seen in the past.
Yeah. Good question so the.
The financial crisis.
In <unk> <unk>.
There was a sort of similar dynamic at play there.
Organizations were really.
Not investing aggressively in new solutions, because they were worried about the payback period, we generally don't charge a lot of money for our services or SaaS fee with an ROI measured in months not years with tons of testimonials from customers that saw those kinds of cost savings and these are not soft savings rate in.
Maybe you'll be able to save some money here or there. This is real savings in postage and materials that head count.
In a rising interest rate environment getting your money faster that's real money that you don't have to take.
On the credit line or something like that so we've experienced these kinds of tough financial times top macro times and generally we do really well and we've just put up three great quarters from a sales and marketing perspective.
You can't tease out exactly why that is is it about investment is it about performance is it about macro environment honestly, it's a little bit about all of those things and plus.
Our ability just to continue to execute on the mission, we set out to do so.
We don't look for tough financial times, but tough financial times actually help us a little bit countercyclical in that way.
Perfect and then maybe just to follow up on some of your comments from Tianjin <unk> questions on.
Just strategic alternatives.
Maybe you can just talk about what's out there in terms of strategic alternatives would it be more bolt on type.
Acquisitions that you'd consider I mean, obviously, we've seen a pretty pretty significant dislocation in valuations across the board.
How should we think about.
How youre playbook.
Has evolved if anything.
I think we're looking we're looking at things of a variety of sizes. There is obviously <unk>.
Far more smaller companies than there are companies of scale.
We continue to look for things in around the office of the CFO that we think would be good to cross sell into our existing base and there is.
Plenty of targets out there.
Could be geographies, where we're not represented it could be additional solutions around something like sales order automation could be something around merchant acquiring which would be a good play for the business payments network.
But we're roughly six months from our last acquisition.
As I said earlier, we're looking at lots of things Kent can share more than that but.
<unk> remains a big focus for us.
Okay perfect. Thank you very much.
Thank you.
This concludes the question and answer session I would like to turn the conference back over to Lynn for any closing remarks.
Okay. Once again, thank you everybody for.
Being interested in the build trust story.
An interesting year for sure from a macro perspective.
Continue to focus on driving outstanding results and I think over the long term that is going to be the right strategy. So again, thanks for the interest and build trust and look forward to.
See you on the next quarterly call take care everybody.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
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