Q3 2022 CSG Systems International Inc Earnings Call
Pre pharmacy retailers to help improve their digital customer engagement.
Turning to slide five I will reiterate four strategic objectives that will help <unk> create more shareholder value and allow followers of our story to track our progress <unk> aspires to deliver long term organic revenue growth in the 2% to 6% range striving to consistent.
<unk> be at or above the midpoint of this range combined with highly disciplined accretive and strategic and organic growth.
We aim to add operating scale and expand our operating leverage by growing top and bottom line by more than 50% to $1 $5 billion in revenue by year end 2025, we.
We strive to be the number one SaaS provider of choice for global communication service providers by providing the most value, adding technology platforms and by being easier to do business with that are competitors and finally, we plan to diversify revenue even more as we expand and big faster growth industry vertical.
<unk> with more direct sales and channel partners success in retail government financial services health care technology and more.
Moving to slide six you can see that we have performed well in the first nine months against all four objectives on strategic revenue growth, we reported $800 million in total year to date revenue through the first nine months of the year, resulting in four 2% quarter over quarter growth.
On the right hand side of slide six we believe the <unk> high recurring revenue SaaS business model and our strong healthy balance sheet make us a safe attractive harbor in the midst of macroeconomic uncertainty by 2025, we aspire to gain scale in the markets, where we compete and Jenna.
<unk> over $1 $5 billion in annual revenue, which implies the CSC will add over $500 million in profitable recurring revenue by 2025.
We aspire to expand <unk> operating leverage and use our strong balance sheet to deliver non-GAAP EPS growth that meets or exceeds revenue growth exactly as we did in Q3 and for full year to date 2022, even with the margin pressure we faced in the first half of the year.
On this last point that will continually reinforce a key principle for the CST board of directors and management team.
Investors can be assured that team <unk> is laser focused on creating shareholder value and growing profitable revenue not building empires, nor adding empty calories, we will maintain a disciplined and high return on invested capital mindset as we explore a wide range of strategic moves to create more value.
Turning to slide seven we had good successes in Q3 on our goal to be the number one technology provider of choice for communication service providers globally, and our continued success with both North American and global Csp's prove that we are executing well against this strategic priority.
It is great to see the CST grew revenue, 5% sequentially quarter over quarter combined at our two largest north American cable broadband customers. In Q3, a result boosted by continued subscriber migrations and additional spend on ancillary services.
And we also won more business the global telecom market at the beginning of Q3, we signed a giant win with a leading telecom operator in Latin America and the Caribbean. This deal highlights the power of our holistic offering for global Csp's. This deal includes our leading revenue management solution.
<unk> encompass product catalog and our <unk> customer engagement offering. It is a powerful example of how we are truly helping the world's largest global telecom operators.
It all channels what does this mean for brands in a wide range of industry verticals.
No entry price points rapid launch of 90 days or less turning customer data into powerful insights and faster return on investment.
The investment we've made in this innovative digital customer engagement SaaS platform continues to translate into very good sales wins in a wide variety of industries we.
We closed a key win for exponents suite of products and a leading pay TV company in today's world, where streaming is gaining market share <unk> is delivering new approaches to engage retain and grow customers specifically our customer journey orchestration tool will help this customer improve their already award winning.
Customer satisfaction across many use cases, including their consumers promotional roll off experience.
Turning to slide eight since 2017, <unk> has grown revenue from exciting new industry verticals from 7% of total 2017, CSP revenue to 25% in Q3 2022.
Being a partner of choice for big brands, and higher growth industry verticals, where we help them digitize and modernize their customer engagement and integrated payments continues to be a big game changer for <unk> and for our customers.
Last year, we won and later expanded deals with two of the largest drugstore chains in the U S and one of the largest retailers in the world, who all selected <unk> software to power the retail and clinic customer engagements. Our solution is increasingly important to all three of these large customers given the unprecedented.
The number of inbound requests that health care providers retail pharmacies and government agencies are getting related to vaccinations appointments and prescriptions I am pleased to report that during Q3, we won and signed a large new expansion to our relationship with one of these top three U S drug.
Store chains.
Specifically, our <unk> suite of solutions will power critical engagement programs for this brand, including their storefronts and with their loyalty rewards program.
Additionally, our solution will layer on customer engagement intelligence, enabling this retailer to gain critical insights into individual consumer experiences.
Two other great digital customer engagement wins from this quarter came in the healthcare space exact sciences, a medical company that specializes in the detection of early stage cancers engaged us to help digitize their customer experience and implement our customer journey orchestration tool, which allows them.
To offer a more personalized patient experience.
We also had a great win at E clinical works a cloud based health care software company that focuses on improving healthcare outcomes.
Clinical works is now using our solutions to increase patient engagement, while digitizing and creating new customer journeys.
And the payments market our growth is a testament to our industry, leading SaaS integrated payments platform <unk> provides award winning payment platforms to nearly 95000 active merchants and ISP partners, who need a CH credit payment gateway and payment processing.
<unk>, serving a wide range of recurring revenue industry verticals as a leader in <unk> processing, we continue to add scale by signing ISP partners and fast growing industry verticals like property management.
Looking ahead, we built an exciting sales pipeline and our payments business that we believe will continue good double digit organic revenue growth.
Before wrapping up let me provide some color on our aspirations for 2023 prior to US sharing detailed 2023 financial guidance on our February earnings call with.
With the excellent sales bookings and customer retention results, we expect organic revenue growth next year to be better than our 2022 performance and be at the midpoint of our 2% to 6% organic revenue growth ambitions, we expect our non-GAAP adjusted operating margin performance to.
Continue into next year, and we expect to deliver good cash flow that builds off our Q4 cash flow results. Specifically, we also plan to reduce our capex spend in 2023 by over $10 million from the approximate $35 million, we plan to spend this year to help insurer <unk>.
Cash flow remains strong and healthy.
Wrap up on slide nine I hope you see why it <unk>. So excited by our outlook, we will do whatever it takes to chip.
Do that one again.
To wrap up on slide nine I Hope you see why teams ESG is so excited by our outlook, we will do whatever it takes to turn today's challenges into Tomorrow's breakthrough business results, we are attracting retaining and developing the best and most diverse talent in the industry, we are dreaming bigger everyday.
They were helping transform the industries. We serve are good sales win rate proves that the market wants more of what <unk> has to offer our optimism is not based on wishful thinking it is backed by a relentless sweat every detail passion to consistently outperform and when any part of our business.
Underperforms, our lofty expectations, then you see <unk> accountability, resiliency agility and operating intensity kick into high gear, just like we did in Q3 to significantly improve our non-GAAP adjusted operating margin to 18, 3% and non-GAAP EPS.
Growth of 25% year over year.
And yes as excited as we are by these great results. We also believe that our employees our customers and our investors have just begun to be rewarded for the value that we will create in the quarters and years ahead. So please stay tuned to CST, because you haven't seen anything yet and with that I'll turn it over to high to.
More detail on Q3 and year to date 2022 results.
Brian , Let's walk through our third quarter and year to date financial results.
And then I'll wrap it up with some key conclusions.
On slide 11, we generated $273 million in revenue and $255 million non-GAAP adjusted revenue during Q3.
These results represent three 8% and three 3% year over year growth respectively.
For Q3, an increase in revenue and non-GAAP adjusted revenue was mainly attributed to the continued growth of our revenue management solutions.
Approximately three fourths of the increase was attributed to organic growth.
This growth was in the face of 3% to 5% discount headwinds for two of our three largest customers.
Q3, non-GAAP operating income was $47 million or 18, 3%, a non-GAAP adjusted revenue as compared to $42 million or.
Or 16, 8% in the same prior year period.
The increases in non-GAAP operating income and non-GAAP operating income margin can be mainly attributed to high revenue along with the timely operating margin improvement initiatives. We took in Q2 and the beginning of Q3.
Specifically, we are seeing margin benefits from our decision to dissolve our controlling interest in mobile card.
Latin American business that was focused on creating solution.
Under banked in the region.
A continued streamlining of our office space footprint.
Rationalization of our head count and hiring practices and the strengthening of the U S dollar to most international currencies.
We now expect full year non-GAAP adjusted operating margin to be at or above the high end of our previous guidance of 16, 2% to 16, 7%.
This does imply that our Q4 non-GAAP adjusted operating margin will be down sequentially.
Merely due to an increase in employee bonus related compensation.
Proved profitability performance in the second half of 2022.
Moving on our non-GAAP adjusted EBITDA was $60 million for Q3 was 23, 5% of non-GAAP adjusted revenue.
As compared to $56 million or 22, 8% in the same prior year period.
Lastly, our Q3, non-GAAP EPS was $1 <unk>.
25% year over year increase as compared to 88.
In the prior year period.
In addition to this result being positively impacted by our increased profitability in Q3. It also benefited from our share repurchase activity over the last 12 months.
Turning to slide 12, I'll go through the balance sheet, our cash flow generation and shareholder returns.
Our Q3 2022 cash flows from operations was $23 million as compared to cash flows from operations of $46 million in the prior year period.
Further we had non-GAAP free cash flow of $11 million in Q3, 2022, as compared to $39 million of free cash flow is generated in Q3 2021.
On a year to date basis, we saw free cash outflow of $22 million in 2022 as compared to free cash inflow of $66 million in the prior year period.
The main drivers of the year to date year over year variance of free cash flows.
Related to certain items, which we believe are primarily timing related over the near to medium term.
The drivers of these changes include.
Unfavorable changes in working capital, resulting primarily from the accrual about 2020 to annual employee bonuses, which are significantly lower than in the previous year and the timing of payment of employee wages.
Higher tax obligations of which the primary negative impact with some section 174 of the 2017 tax cuts and jobs Act.
Which deals with the amortization of R&D spending beginning in 2022.
As a result of this we will not get the previously anticipated amount of the tax deduction benefit.
Related to our R&D investment in 'twenty. Two we had previously expected this legislation to be repealed, but because of the legislation was not repealed we now anticipate higher cash taxes going forward.
However over a five year period, we believe this tax change will be neutral to our free cash flow generation.
Slightly elongated cash conversion cycles from a couple of our recently signed large global telecom new logo win that will result in good long term profitable revenue as we continue to gain market share from competitors.
On the negative cash impact of our operating margin improvement plan that we initiated in Q2 that included increased restructuring charges continued streamlining of our office space footprint head count reduction and enhanced scrutiny regarding new hires.
The cash flows generated from operations before changes in working capital in Q3 of 2022 were $36 million compared to $42 million in Q3 of 2021. Similarly.
Similarly on a year to date basis cash flows generated from operations before changes in working capital were $122 million as compared to $134 million in the prior year period importantly, absent the aforementioned impact from section 110, before we would have shown positive growth in cash flows from.
Before changes in working capital during the first nine months of 2022 on a year over year basis.
Moving on we ended the third quarter with $147 million of cash and short term investments.
That along with our outstanding debt at September 32022.
Built in $285 million of net debt and our net debt leverage ratio sits at one two times.
Moving to the bottom right of the slide we declared $25 million in dividend during the first nine months of 2022.
In addition, we repurchased $66 million of common stock under our stock repurchase program.
In total we returned $91 million our shareholders through the first nine months of this year.
On the right hand side of Slide 13, you can see our latest 2020 guidance outlook. We're pleased to reiterate our 2022 revenue profitability and EPS targets.
Additionally, we now expect to come in closer to the midpoint of our original 2022 revenue guidance.
And to come in at or above the high end of our adjusted operating margin and non-GAAP EPS range.
As Brian alluded to earlier, we are also revising our 2022 free cash flow expectations.
While we expect to deliver a strong ESG like Q4 free cash flow in the range of $45 million to $60 million.
Which is similar to our Q4 2021 free cash flow result of $48 million.
Our full year 2022 cash flow is expected to be between $25 million and $40 million for the full year due to some operating optimization actions factors impacting timing.
The reduction from our previous guidance, primarily driven by the aforementioned slightly elongated cash conversion cycle from a couple of our recently signed large global telecom new logo wins in.
Increased restructuring and severance costs related to our operating margin improvement initiatives and increased cash spend relates to certain business inventory in a tight supply chain environment and other timing related items.
With respect to 2023 free cash flow. This is a major focus for the <unk> leadership team and we expect significant improvement over our 2022 results primarily due to the cash collections from the aforementioned timing headwind.
Additionally, we will see an approximately $10 million reduction in Capex spend next year as our 2020 spend was elevated due to monetization investments to drive improved efficiency and forward buying of it related equipment.
Also with respect to 2023 free cash flow. Please keep in mind that we do have a few headwinds, including the continued impact from section 174, and cash outflows related to restructuring charges incurred in 2022 stemming from a operating margin improvement plan.
As we look to the long term the cash generation of the business has not changed but we will experience some transitory cash flow drag over the near to mid term as the business digests the temporary impact from the change in catching touching 174.
<unk> capital timing and the impact of the restructuring charges to ensure increased operating leverage over time.
Going forward the current challenging inflationary environment means we must relentlessly prioritize every investment we make and be disciplined in the allocation of resources, including those around our new business ventures.
Innovation and adherence to a risk reward framework with continuous learning are two cornerstones of how we run the business we remain devoted to a disciplined approach to managing our capital.
In closing our business is well positioned with a strong sales pipeline robust sales bookings momentum and extremely high quality customer base and a very high percentage of committed revenue.
Main committed to accelerating our revenue growth and diversifying our industry vertical revenue, which may include closing and integrating discipline value added acquisition.
Additionally, we are pleased with the results about operating margin improvement initiatives to date and will continue to be very careful stewards of our capital, especially in this uncertain environment.
We believe this approach combined with our consistent capital distribution in the form of both dividends and share buybacks will serve our shareholders well.
With that I'll turn it over to the operator to facilitate the question and answer session.
At this time, if you'd like to ask a question simply press star followed by the number one on your telephone keypad again that is star one to ask a question. Our first question will come from the line of Matt Stotler with William Blair. Please go ahead.
Hi, there. Thank you very much for taking the questions.
Maybe just.
First on profitability right. It's good to see the results in the quarter and helpful commentary on how youre thinking about some of those dynamics you talked about last quarter.
A couple of other things you talked about last quarter that love to get an update on as well one of BV.
From staffing of deals some of these large deals that.
You talked about in terms of where you're at in terms of the staffing process and how those heads are ramping productivity and then number two would just be the synergies from recent acquisitions, but love to get an update there and how those are expected to layer into the model going forward.
Thanks for joining Matt Thanks for the question so on the staffing.
<unk>.
Big projects, gaining market share big complicated deployments, we are ramping up our staffing we've been adding hundreds of technical staff all around the world, we like where the projects are going as high commented on we still see some inflationary pressure around that which is why we are proud of the the margin on how we were able to offset some of the inflationary.
Wages, but we continue to ramp we continue to deliver the programs and this is one of the real strengths of <unk>, where we differentiate from competitors and we just got to keep going with the big successes, we're having.
Pacifically on the the.
Integration, both culturally and from a financial standpoint on the acquisitions, we love what we're seeing on these we've acquired good assets over the last 12 to 15 months and you've seen us launch exciting new products in the market. That's enabled us to both accelerate sales and revenue growth, but also contributes to the <unk>.
<unk> ability and so we launched <unk> exponent.
After we acquired kite will re launched <unk> encompass an award winning API driven solution for a global telecom with configure price quote order management, we're seeing good market traction and sales and we like what we're seeing these are good gross margin businesses also contributed to our healthy $18 three.
So integrations are these are part of CFC there theyre CSD teams globally. They are fully integrated and we like what we're seeing and we just got to keep driving more sales wins.
Great Great very helpful.
And then maybe just one more from me.
It was helpful. The the initial guidance that you gave for 2023, obviously you guys haven't done a lot of work too.
Establish a great renewal basin.
Excuse me to renew some of your largest customer contract in the past couple of years.
We'll look to maybe get your thoughts obviously, it's obviously still early but in terms of the new customer pipeline specific to new verticals, how is that kind of layering into your expectations for growth going forward in the context of the macro uncertainty that we're seeing are you seeing any changing in spending behavior of prioritization or timing.
When it comes to some of those those new vertical customers.
Yes. This is probably one of the things that excites us the most in terms of what we're seeing in the business both for our market market demand and our sales pipeline and sales performance.
Our planning is if.
There is going to continue to be storm clouds for the next year, but we actually see some of the best sales growth. We see some of the best revenue growth that we've seen in a long time, probably ever in our business across all aspects on the global telecom space on both the consumer side of wireless and enterprise, we see big growth.
In the market and we like the pipeline, we like the sales win rate, we like the market share gains.
We know theres challenges out there in the market, but we're not seeing that materialize in any dampening on our demand if anything we're just seeing accelerated growth same is also true in the new industry verticals. So when we talk about the <unk> exponent of ignite launch in the market. This customized solution or really it's starting out.
With four industry verticals Communications service providers financial services retail healthcare life Science, we're seeing fantastic market receptivity to our new market launch and we're seeing just fantastic wins like the couple we announced in the life Sciences space and like we announced with the big expansion.
One of the top three U S pharmacy retailers, so and Thats largely up until now we've been focused on proving this growth in market and sales success in North America, now youre going to see us really start through channel sales and some targeted direct sales expanding globally, because we just see the.
Market demand for these solutions. So we are continuing to focus on driving that percentage of our revenue that comes from higher growth industry verticals, 25%. This quarter was a little over 26, almost 27% last quarter, we expect that to continue as we diversify our revenue and win more exciting deals in these new verticals.
Very helpful. Thank you again.
Thanks, Matt.
Your next question will come from the line of Greg Burns with Sidoti <unk> Company. Please go ahead.
Good afternoon.
The.
The sequential increase in revenue.
Or how much of that was from the new subscribers versus maybe some incremental services.
Any color on the added services that Comcast and charter are adding.
Yeah, great. Thanks for joining.
One thing I want to clarify the 5% sequential growth towards combined for both charter and Comcast, but when you combine the revenue of both from last quarter to this quarter and I would say a good portion of that was driven by some of the.
Subscriber migrations and the expansion we did there, but we also saw a nice pickup in ancillary products and services and demand. So it really came from a combination and what.
We're excited about both.
Okay.
And then.
Annual contract value of the bookings that you referenced.
So how long does it.
Typically take for.
So thats a convert to revenue for those projects to scale up.
Yes.
Really depends on which which parts of our business. It comes from and there are some that can activate the revenue with them.
One to two bonds. There is others that then would go on a percentage of completion. If the project schedule is scheduled to be deployed over 12 to 18 months that you would actually see revenue being spread either on the percentage of completion or if its a SaaS deal it would actually be spread over the length of that contract term on what it is so.
It really varies but.
One thing that we've had good success on is timely activation of new revenue and having high quality of our sales bookings actually convert dollar per dollar into into actual revenue that drives the business. So.
Berry's Theres not really a better answer high is there anything else you would add around that.
Right.
Sure.
It will just vary depending on the solution that and and.
And how we deploy those solutions by customers.
Okay.
And then what.
The.
The telecom win where you are displacing an incumbent can you just talk about.
Maybe to the <unk>.
Factors that.
Unable to do too.
To win that deal.
Differentiated you and kind of.
Why are you why you feel that you.
So on that deal.
Sure.
It's the same trends we've been talking about for the last several quarters, what we see in the global Telecom market is one they've been under some pressure to recoup their investment in <unk>. They've also been under some pricing and margin pressure. So they need to expand margin and offer an improved customer experience and so what we see a lot of glu.
<unk> telecom operators wanting to do simplify their business process move to a less cut.
Customized platform and move to a lower cost more cost effective.
Platform that <unk> offers lowest cost improves customer experience high quality conversions that makes their platform their business more agile and we're seeing a lot of global Telecom say now is the time to switch and we see that both on the consumer side of the business, where <unk> has a lot of strength and we also see it on one of their <unk>.
Fastest growing more profitable segments, and enterprise, which is which has been an area that <unk> just a sale of that for the last 10 or 15 years. So it's really those drivers that we see driving it and it's a way for them to respond to what their consumers and markets are demanding and.
More we win the more recession successfully deploy the more they become our best sales references that helps us win more this is one of the areas that our market share gains were most excited about across the business along with our North American cable and these new industry verticals on digital customer experience.
Okay. So it sounds like I.
I guess is there more RFP activity going on now are you seeing.
Is there just generally more willingness.
Hi.
Cable other telecom operators to kind of.
But on an RFP and look at their end.
Look too.
Look for a new solution.
Yes, yes, that's exactly right Greg.
I've been in the industry for two decades, I haven't seen a higher level of activity.
Almost two decades in this industry in terms of telecom operators wanting to launch new business revisit platform decisions have been willing to change out their platforms and it's coming from what's going on in the market. They need to accelerate revenue growth may need to simplify their business they need to take cost out they need to recruit <unk>.
<unk> with their <unk> charging and <unk> investments in their network.
The market is extremely attractive and we love what we're seeing in the market. We've just where what do we have to do we have to consistently win more and more of these big deals we have to deliver extremely well and bring them the value that they are counting on and then as we do that we think this is something that will continue in the market in the coming quarter.
Orders in years, we love what we're seeing on the demand side notwithstanding some of the macroeconomic challenges. We know that we all know a real if anything possibly some of those micro and macroeconomic challenges are actually increasing demand for us exactly because of the value proposition we can bring them.
Okay, and just so I'm clear. So is this what you are talking about now beyond.
Historically, you would talk about telco as converting these customers to managed service deals. This is incremental and beyond that this is like expansions as opposed to just maybe converting to a different model with these customers.
This is <unk> winning market share, it's exactly right <unk>, winning market share, helping large global telecom operators digitize their business improve customer experience and switch platforms from a competitor's incumbent platform to ours and in many cases, it's not just replacing.
The monetization engine, it's actually selling other solutions around it. So for example, the big win in the Caribbean and Latin America is deploying our monetization solutions. It was also deploying <unk> encompass product catalog. It was also deploying <unk> exponent to improve digital.
Customer experience is one of the things <unk> been talking about about how we get operating leverage is doing a better job of cross selling and up selling inside of both new customers selling them more of our our full stack offer as well as.
Cross selling and Upselling inside the existing base, it's all of the above.
Okay, great. Thank you.
Thanks, so much Greg.
Our next question comes from the line of Matthew Harrigan with benchmark. Please go ahead.
Well. Thank you just alluded to gaining share in some rapidly growing towns like customer engagement various verticals, but I'm curious how you see this environment.
Back to your competitors, whether it be some companies that are overextended. There are smaller that don't have your balance sheet for some.
Businesses that are more or less side cars of larger companies that people might be tempted to rationalize in this environment. It feels like this environment is probably working in your favor or both.
<unk> Inorganically, if you can execute the way that you aspire to.
Hey, Matt I appreciate you joining I appreciate the questions.
On a couple of different fronts from an organic cited in the market. We actually think the market is benefiting us because we typically what we see is even if companies are wanting to dial back some of their opex from a customer base standpoint, what that often means is they want to consolidate their spend they give.
With fewer vendors or fewer partners, so where we've proven ourselves and we performed well with mission critical software. It typically means even if theyre cutting costs theyre cutting other competitors or other vendors and they're consolidating more with those who deliver fast for them I think that's moving in our vantage I think the fact that.
Digital customer experience is.
Our game changer.
The main competitive advantage for all of these brands they know they've got to improve their customer engagement they have to improve their NPS and they actually have to take cost out. So if you have a proven SaaS platform like <unk> does and a lot of these spaces. We can help them take cost out improve customer experience improve cross sell and retention.
So this whole move of digital engagement is a is playing to our advantage on the organic side. So again, we love what we're seeing on the demand side of the business and it bodes well for our on growing ongoing growth organically next year, which we think will be higher than what we've had in 2022 on the inorganic I'd say it's.
A little mix, but I'll tell you what I mean by that is on the one hand, we do think healthy balance sheet gives us complete optionality in terms of when Theres a good deal to acquire a company with a great offering great customer base that can be accretive at the right price, we can move quickly and timely to be of high quality.
Acquirer and we integrate well.
The flip side is if we don't like the price we can wait because we think if anything that will put pressure on some of these companies that just don't have the same balance sheet or maybe they're relying on more debt and the higher interest rate costs are going to play on them over time and so the reason it's Mexico is buyers are wanting to fat.
After and the potential risk over the next three or four quarters and be disciplined which is exactly how we're thinking about it we still see some sellers that might be very attractive for us wishing that you get the price from 12 months ago, and therefore that creates a dichotomy if you will between disciplined.
Here, the timing of when a seller might really want to pull the trigger and so we kind of view. This as time is on our side and we want to stay highly disciplined but ready to move when the when it comes into our strike zone on the acquisition side.
And how much are you seeing from the inverse dollar play effect, because I know you've got a number of software engineers and other people in markets like.
The India, and Youre, probably even while youre directly benefiting a little bit from the.
Strength in the dollar when you look at things from that perspective.
Yes, I think that.
Strengthening dollar.
Speaking personally.
Our top line because it's a headwind for us roughly 15% of our revenue now comes outside the U S.
But youre right. We have made some broad based investments in technical resources outside the U S.
We did benefit from that I think we called that out.
In our prepared remarks.
But that is something we're continuing to monitor.
And lever for us to drive efficiencies over time.
Regardless of what currency.
Thanks, Brian Thanks, a lot.
Thanks, so much Matt.
We have no further questions at this time I will turn the conference back over to management for any closing remarks.
No. Thanks, so much thanks for joining the call today hopefully you can tell we're excited about the focus we're laser focused faster growth more discipline, driving better or better non-GAAP adjusted operating margin delivering on strong cash flow in Q4 and building momentum for the 2023 is even better faster growth in <unk>.
Results across the board than what we are going to deliver when we finished a strong 2022. Thank you for joining us Tonight.
Ladies and gentlemen that concludes today's meeting. Thank you all for joining you may now disconnect.
[music].
Okay.