Q3 2022 Pros Holdings Inc Earnings Call
Greetings welcome to Pros Holdings third quarter 2022 earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference. Please press star.
Zero on your telephone keypad as a reminder, this call is being recorded I would now like to turn the conference over to Linda over Deputy Director of Investor Relations. Thank you you may begin.
Thank you operator, good afternoon, everyone and thank you for joining US our earnings press release, SEC filings and a replay of today's call can be found on the Investor Relations section of our website at pros dotcom.
Our prepared remarks will also be available on our website immediately following the call and will be replaced by the official transcript, which includes participant questions. Once available with me on today's call is andras writer, President and Chief Executive Officer, and Stefan Schulz Chief Financial Officer.
Please note that some of the commentary today will include forward looking statements, including without limitation, those about our strategy future business prospects and market opportunities and our financial projections and guidance actual results could differ materially from such statements and our forecast for more information. Please refer to the risk factors described in our SEC filings.
Pros assumes no obligation to update any forward looking statements to reflect future events or circumstances. As a reminder, during the call. We will discuss non-GAAP metrics reconciliations between each non-GAAP measure and the most directly comparable GAAP measure to the extent to which you're available without unreasonable effort are available in our earnings press release.
I'll turn the call over to you Andres.
Thank you Bill and good afternoon, everyone and thank you for joining us on today's call. We delivered another strong quarter, we grew our subscription revenue by 17%.
Total revenue by 12% in delivered strong profitability improvements despite a challenging macro environment. Our team continues to execute well in drive market adoption of the protein platform.
At least doubling our deal count every quarter this year.
Companies are turning to pros to help them drive profitable growth in the face of increased market volatility in this shift to digital selling.
Buyers today, whether be it a b or b to see expect to be able to engage with sellers through digital channels, while still blending in various human touch points.
And it says you need to deliver the right offer at a market relevant price in real time across any channel the customer chooses to engage in.
I believe the pros platform is the only solution in the market with the breadth of capabilities businesses need to win in the digital era.
It's been just over a year since we officially launched the pros platform.
Our highly differentiated platform has contributed to our success. This year and we believe our platform strategy will continue to fuel our growth long term through three key areas successful Lance.
Many expansion paths and extensible keep abilities.
First successful lance or platform of Modularized capabilities enable us to easily land new customers in the Labour rapid time to value I believe no one else in our market comes close to delivering the significant value we deliver just.
Just look at the value assessment of over 130 customers. We publish on our website that shows on average customers generate 8% revenue uplift.
200 to 500 basis points of margin improvement in 67% efficiency gain.
In Q3, a b V a leading manufacturer of electrical equipment in Chi Health care is subsidiary of General Electric selected our platform to drive profitable growth with our price optimization and management capabilities, a b B and D are just two examples from.
Q3 of how pros can land at multinational conglomerate with a modular ice offering to drive immediate value.
Another example is V M distribution, if French distributor of construction materials, who selected our platform to power price management in sales automation for their supplier sending customers VM was looking for an end to end solution that could scale with their business in any great <unk>.
Seamlessly with Microsoft dynamics, 365 landing with pros pricing and see PQ capabilities V. M can drive higher win rates margin improvements in efficiency gains.
To accelerate our land strategy, we're continuing to innovate to drive even faster time to value in an amazing customer experience. We recently released new price optimization and management activation packages for B to b customers decide to deliver high value prescriptive workflows.
Two power profitable growth in under 30 days.
Similarly in travel we launch new activation packages for our essentials solution designed to land new airline customers and get them live with the most advanced in the industry in eight to 10 weeks any airline regardless of size or complexity can adopter salute.
<unk> to drive profitable growth.
Second we fuel our growth with our platform by having many expansion pass.
Customers can easily expand to adopt new module, sir capabilities, they can add new divisions or geographies into their solution and they can expand usage source solution grows as their business grows.
Two expansion examples among many we saw in Q3 were Cathay Pacific Airways and online are Kathy.
Cathay Pacific Airways, the flag carrier of Hong Kong expanded their partnership with pros by choosing to migrate towards SaaS platform.
Cathay Pacific will fuel their revenue recovery with pros latest innovations and revenue management.
All my near the National carrier of one mind expanded from more RM essentials solution to arm advantage, enabling their journey to our market, leading continuous dynamic pricing capabilities.
Third our platform provides customers and partners with the ability to extend our capabilities to bring new innovations to market.
In Q3, we extended our digital offer marketing solutions with the launch of every Mundo marketplace in application store. They connect third party developers building ecommerce application sound every Monday platform to enterprise customers. They removed our marketplace is the foundation for <unk>.
<unk> system of partners like front 10 to generate even more value for customers and for our business where customers can access over 100 products on the marketplace built to help them drive more wins.
We also launched a new developer portal build with pros dot com to support rich Omni channel commerce experiences build with Bros. Dotcom provides our customers and partners in library of proceeds P. S empowering them to integrate with and embed Prost data.
Insights in services within their enterprise applications accelerating time to market, while providing a richer customer experience.
Leroy Merlin if French home improvement retailer is one example of a customer extending pros platform services into their ecosystem.
Using embedded Prost H P is for pricing and quote configuration Leroy Merlin provides their online customers with a seamless custom order configuration process on their website, we have significantly extended our leadership position over the last several years, where SaaS native.
I solutions process over two trillion transactions per year.
That's more than 12 times the volume of transactions they've been said does annually.
Our blue chip roster of Fortune 1000 customers come from a wide range of diverse industries, including Airlines technology food and energy among many others and they all rely on the pros platform to drive profitable growth the VA.
You mean diversity of the data available tour algorithms is what gives our customers aib's outcomes that no other competitor can match.
Just as we're driving profitable growth for customers, we're focused on driving our own profitable growth.
We're being paint channel about where we invest we recently made structural adjustments to accelerate key growth initiatives and improved profitability Stefan will cover more on the impact of this re prioritization in his remarks bill.
Before I close I'd like to thank our incredible global team for their passion and dedication to pros I'm. So proud of everything we've accomplished so far this year and look forward to delivering another strong quarter to wrap up 2022.
I'd like to thank our shareholders partners and customers for their ongoing support of pros with that I'd like to turn the call over to Stefan to cover financial performance and outlook.
Thank you Andreas and good afternoon, everyone. We delivered a strong third quarter and as Andreas mentioned, we've more than doubled our deal count year to date.
And we were able to do this while improving our ratio of non-GAAP sales and marketing expense to revenue.
We welcomed a number of new customers to the pros family in Q3, and one I would like to highlight is repeat O a leading French manufacturer of rvs vans and mobile homes.
I'm, a big fan of RV Ing and I'm thrilled to welcome <unk> to the pros family.
Roberto was seeking a see PQ solution that could support sales to their vast network of retailers online to drive efficiency and profitable revenue growth.
As Andrew has highlighted in his remarks or in the EM platform capabilities supporting Omnichannel selling is a key differentiator for us in the market and one of the reasons, we ultimately won repeat how's business.
Now highlighting our third quarter results subscription revenue in the third quarter was $51.8 million up 17% year over year, and total revenue was $70.3 million up 12% year over year.
Our third quarter recurring revenue was 84% of total revenue.
Our non-GAAP subscription gross margins rose to 77% for the quarter, which is up from 72% a year ago and 76% last quarter.
Also our services gross margin reverse the trend of losses to a positive 4% margin in the third quarter.
And as we get into 'twenty 'twenty, three and beyond we expect services margins to be slightly positive on an annual basis with some quarterly fluctuations due to seasonality trends.
Our trailing 12 month gross revenue retention rate in the third quarter remained above 93%.
Our adjusted EBITDA loss in the third quarter was $2.2 million significantly exceeding our guidance and contributing to our ability to raise our annual guidance.
This outperformance was driven by a combination of our revenue outperformance improved gross margins and some one time benefits from third party expenses, which materialized into savings in the third quarter.
I'm proud of how our team continues to drive momentum for our business, while driving greater efficiencies into our operations.
Free cash flow burn in the third quarter was $9 $1 million, we exited the third quarter with cash of $206.8 million.
And as and as is typical we expect to see a significantly improved fourth quarter free cash flow.
Our non-GAAP loss per share was six cents per share.
Our third quarter calculated billings increased 20% year over year, and 19% for the trailing 12 months exceeding our expectations and demonstrating the strength we saw in the quarter.
And we ended the quarter with 62 quota carrying personnel and we expect to be approaching 70 by the end of the year.
As I said earlier, we continue to drive greater efficiencies in our sales rep productivity and are confident in our teams have a capacity to deliver on our objectives for 2023.
Now turning to guidance for the full year, we are raising our revenue and adjusted EBITDA guidance.
We expect 2022 subscription revenue to be in the range of $203 million to $203.5 million, a 14% growth rate at the midpoint and total revenue to be in the range of $273 $75 million to $274.75 million, a 9% growth rate at the midpoint.
We expect 2022, adjusted EBITDA loss to be in the range of $21.5 million to $22.5 million.
We are maintaining our annual guidance for 2022 free cash flow and expect a burn of between $21 million and $25 million.
And we expect total air are at constant currency to be in the range of $246 million to $250 million in subscription a or are at constant currency to be in the range of $224 million to $228 million.
As a reminder, we have historically provided are our guidance at constant currency.
Also while mentioning currency I would like to make a couple of points related to the recent changes in foreign currency rates.
And the impact of pros.
First as we mentioned last quarter and in past earnings announcements, even though the majority of our revenue is generated outside the United States, our foreign denominated air or is less than 15% of our total here are.
So the foreign exchange impact on air are and revenue is often less than what the geographic revenue mix might imply.
Second the significant swing between the Euro and U S dollar largely occurred over the past seven months and not the full year.
Accordingly, any revenue from first quarter billings weren't significantly impacted by the stronger U S dollar.
For these two reasons, we expect the impact to our recurring revenue and total revenue for the full year to be under 1% from foreign currency fluctuations.
While the foreign currency impact is not significant for the full year. The impact is growing each quarter and we currently anticipate slightly more than a 1% impact in the fourth quarter.
Our air or on the other hand is reported at a point in time, which means the full foreign currency exchange impact from last year will impact are are at the end of this year.
As of now we are expecting about a 2% decline from air are at constant currency rates to a R. R. At current exchange rates.
Assuming the current exchange rates hold through the first half of next year, we anticipate a similar 2% impact to our full year recurring revenue in 2023.
Now shifting back to guidance, our fourth quarter guidance is as follows we.
We anticipate subscription revenue to be in the range of $52.1 million to $52.6 million, representing 11% year over year growth at the midpoint.
We expect fourth quarter total revenue to be in the range of $68 $5 million to $69.5 million or 6% growth at the midpoint.
This range does imply a sequential decline which is caused by two things.
Lower services revenue due to the lower number of billable days because of the holidays and the growing negative impact from a stronger U S. Dollar.
We expect fourth quarter, adjusted EBITDA loss to be between 4.2 and $5 $2 million.
At the midpoint. This is a 26% improvement over last year, but like last year, a sequential decline from the third quarter.
The fourth quarter seasonal decline in services revenue and the onetime expense benefits. We saw in the third quarter are causing the sequential decline in adjusted EBITDA.
Overall, we are making solid progress on improving profitability, while still investing in the growth opportunity in front of us.
Using an estimated non-GAAP tax rate of 22%, we anticipate a fourth quarter non-GAAP loss per share of between 11 and 14 cents per share based on an estimated $45 5 million shares outstanding.
As Anders mentioned, we have re prioritized our investments to focus on supporting key growth areas for our business as.
As a result of this re prioritization, we expect to incur severance charges in the fourth quarter of approximately $4 million to $5 million, which we will exclude from our non-GAAP results.
Before I turn the call back over to the operator for questions I wanted to highlight some of the key components in our long term model.
We expect the strong bookings trend we are seeing today continue into the future.
And believe that will ultimately lead to our targeted total revenue growth of about 20%. We're also targeting total gross margins approaching 70% and EBITDA and free cash flow margins of 10% or better.
We made updates to our investor presentation on pros Dot com to include these long term projections and we will provide more details on our long term target model at our next outperform event in May.
Additionally, we have streamlined our investor materials to embed the rolling eight quarter view of key business metrics directly into the investor presentation, rather than providing a separate table in another location.
In closing I would like to thank our employees and customers for their continued passion and support. We also thank you for your continued support of pros and we look forward to speaking with you at our upcoming events I will now turn the call back over to the operator for questions operator.
Thank you if he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue and for participants using speaker equipment may be necessary to pick up your handset before pressing the star.
He is.
Our first question is from Chad Bennett with Craig Hallum Capital Group. Please proceed.
Okay. Thanks for taking my questions nice job again on an improving and executing in the quarter and seeing the de acceleration in business metrics.
So I mean, you guys are a bit of anomaly at least from what I've heard this quarter in terms of.
You know your business seems to be strengthening.
You cited a number of EMEA wins, and which youre not hearing a lot about.
A number of Asia Pac wins in and particularly in travel.
Andreas can you can you I mean, you didn't cite any any kind of media or just overall macro concerns around <unk>.
Sales elongation or close rates or deal scrutiny is it fair to say you guys.
Feel pretty good about what's going on.
Yes, Chad Great question, Yeah. Overall look I think our team is executing phenomenally well I think that definitely I would tell you look there is deal scrutiny.
But I talked about last quarter, the importance of us being very intentional about time to value and ROI.
In in solving it creates clear pain point that customers had that they need to do.
To solve and I think our team has been good at really.
Being able to show them the massive value that we can drive in a very short amount of time and land deals really in all parts of the world EMEA did well I would say North America was very strong I was pleased to see.
In travelodge doing deals in India Asia region.
So overall very pleased with our results and with the execution.
Got it and then maybe one for Steffan I mean, the the subscription growth accelerated pretty nicely I think the best and in a couple of years on a year over year basis, and then you highlighted recurring billings and overall billings I think right around 20% or at 20%.
If I look at you know you never want to take one quarter as you talk about but if I look at the trailing call it for from a billing standpoint.
You know you're you're kind of.
Right around upper teens to maybe 20, if I'm aggressive or being a little more aggressive on a trailing basis and and you know again. It seems like you know the travel business, you're feeling better about and in B to B I think it's been strengthening you know for a number of quarters here.
How should we think about that.
That recurring billings kind of trailing 12 in and looking ahead into the subscription growth rate.
Yes, so so Chad thank you for the comments.
Yeah, We you know we've been very happy with.
As Andre has commented on the performance of our sales team and our go to market team they've done quite well.
And to your point, we did have a trailing 12 month number of about 19%, which is more than what we were thinking we were thinking probably more in the mid teens and I would say if you think about our you know.
Going forward there is some uncertainty in the macro that we're working with right now there's obviously with the change in elections, you've got <unk>.
You know the European War, that's going to go into the winter and there is a lot of uncertainty around energy and some of the things that go with that I would probably tamped down that that expectation down to probably the mid teens ish range.
Mainly because of some things that we're seeing in the macro that we just need to get some answers addressed.
Before we're willing to say, we can sustain that that level of performance going forward, it's really mainly that.
Okay, and then maybe one last one real quick if I could Stephan I think you talked about some restructuring or both of you guys did on in the business and Stephane you talked about a four to 5 million charge in fourth quarter, just any more color into that and what to expect in the go forward into next year in terms of cost saves.
<unk> relevant to that charge, thanks, I'll hop off.
No no good question.
So we.
We mentioned, it's really a re prioritization. So we really weren't looking to necessarily just go in and do just a raw cost savings, you'll you'll see our expenses continue to grow but we really wanted to do is make sure. We're investing in those areas that are going to drive the growth for us going forward being very cognizant of the fact that we want to have one number one.
Grow but number two we want to do so responsibly and in a way in which we can also drive improvement to our bottom line and in our free cash flow, we've talked before about wanting to be at a place where we could approach free cash flow breakeven and that is still our <unk> chip as we as we look into 2023. So it was <unk>.
Really a re prioritization effort that we that we executed upon at the beginning of this quarter and.
Given that it happened in Q4, we're not going to really see the effect of it until Q4, and obviously, you'll see the charge.
When we release next next quarter.
Thanks, Mike.
Thank you.
Our next question is from Parker Lane with safer. Please proceed.
Hi, it's Max on for Parker, Thanks for taking my questions Stefan just staying right there.
On kind of the quota carrying personnel there is that that as you guys re prioritize and then you expect to get back to the 70.
Do you expect kind of the.
Implied eight more personnel to be ready to go to contribute right.
Slide 23 starts and what should we think about kind of sales and marketing expense as a percentage of total revenue going forward. After the nice kind of reduction that you guys are able to deliver this quarter.
Yeah, So I would say that.
Let me first answer your first question around the quota carrying personnel.
No they will not be ready to go January one.
It takes a little bit more time of a ramp, but we would like to make sure that we hire.
These new reps and in time to where they can have a meaningful amount of productivity in 2023. So looking forward, though the last you know.
Let's say half to three quarters of a year, we'd like for it to make sure that they're as productive as possible to add to our number for 2023, but not not on day one.
Your second question about where we are in terms of of our selling and marketing.
As you as we look at the model, where we're still looking at the upper twenty's to be in our selling and marketing expense. One of the reasons you saw a bigger reduction in Q3 than normal as we are going through a bit of a re prioritization of the areas that we want to focus on and invest in from a.
Earnings standpoint.
We just recently hired a new CMO, who is really looking at ways in which he can make the.
Drive more visibility and more demand for our solution and our products and we are going through a little bit of change there. So I would expect to see our marketing expense come back a bit in the fourth quarter and next year.
Got it thanks, and then Andreas one for you just thinking about the.
Very very strong deal count so far year to date Boeing last year.
Is this expected to continue for the remainder of the year into next year is it somewhat of a pull forward maybe from next year as people realize how powerful your solution is just a little more color on that would be great.
Yeah, Max Great. Great question I would tell you like this was we executed on our platform strategy a year ago. We think that we were getting to drive significantly more deal growth and I think we're seeing that really come through.
I think we've made it easier and easier to adopt our platform to get to value and to have very measurable ROI in that and I do expect you know continuing in the fourth quarter.
You see strength in deal growth, it's too premature to talk about 'twenty three.
But I do expect us to continue to see good deal growth.
And if anything I would say on the Es east we've seen them slightly come down and I had talked previously that we'd like to get the asp's in the 200 range and now we're just under 300 <unk>, so not a material move but in the right place.
And as I talked in my prepared remarks, it really wanted to be able to land any business of any size it to value and have many paths to expand in and we're seeing great success. You know very proud to have you know gee.
<unk> healthcare ABB landing on the platform and also seeing companies like ourselves.
Is that that is expanding on the platform and medtronic that expanding the platform in the quarter. So we're seeing both great land as well as a great expansion because of you know our shift to the next generation platform.
Got it that's it for me congrats on the nice quarter.
Thank you Max.
Our next question is from Patrick Schultz with Robert W. Baird. Please proceed.
Yeah, Hey, guys, thanks, and congrats on a great quarter. It seems like a lot of good progress you guys are saying so I just wanted to ask just on the travel and airline environment. It seems like that continues on the recovery path and as this progresses.
How should we be thinking about how much of the airline and the revenue mix is driving that 20% long term revenue growth target.
And then also I'm curious to hear your thoughts on where revenue management and pros software ranks in terms of the airlines top investment priorities as travel continues to recover.
Great question, Patrick couple of things for now year to date <unk> is driving the majority of the growth. So travel is still in the early recovery.
But we think travel it's very strategic long term, we said, we'd like to get traveled to the low to mid teens growth. We're definitely nowhere close to that right now and part of that is while they're staying at a pretty significant recovery. There are still many markets like Asia Pac that are still.
Way below the 2019 levels. The good thing is that we are banding, we're driving value and I think our solutions, even expanding beyond revenue management is the full digital offer marketing shopping merchandising and offer optimization all of the areas.
Where we think that's hitting travel from the passenger into groups to air cargo are very strategic areas that airlines are focus on as well as really driving the next generation digital experience for all of those whether it be passenger whether it be groups or whether it be air cargo.
So we feel we're in a great position to capitalize on the revenue recovery in the travel industry.
I will say, we're in the early innings of that recovery.
You know, but we are very confident that innovations that we've done are really resonating in the market.
Great. Thank you so much and then one more quick question to that you guys briefly noted that you entered into a reseller agreement with Accenture. So I was just wondering if you could provide any update to the momentum you're seeing on the partner side are you starting to see customers lean into the partner channel even more during the current macro environment and then how do you expect the partner channel to evolve over.
Time, and how does the channel play into your long term growth and international expansion efforts.
Great question Patrick.
Our channel that's a big part of our growth strategy, whether it be accenture, whether it be Microsoft.
Or abroad, a partner ecosystem E Y and many many others that we're working very closely I would say today, they're contributing about 30%.
You know of the business, we're driving but we see that continuing.
To increase.
Significantly and it is a big part of our growth strategy also as she talked about the Accenture reseller agreement reseller motion is a new motion for us long term, we want that to be a significant part of ore.
Ro.
But I would say we're in the very early innings of that.
But we're seeing promising results.
Awesome. Thank you guys so much.
Thank you.
Our next question is from Scott Berg with Needham and company. Please proceed.
Okay.
Hi, everyone. Thanks for taking my questions here congrats on what appears to be a good quarter.
A couple of items Andreas let's talk about sales execution, a little bit I know you talked about a number of deals closed is up double or more than double year over year, its third straight quarter.
I know the companies went through some changes in its go to market strategy. I know you had a change in leadership there Stefan.
Stefan certainly talks about some of the prioritization.
As you look at the productivity levels, maybe in the quarter or year to date, how far are we in terms of reaching your goal on sales productivity. Because my guess is we're probably not there, but how close are argue.
Yeah, I would say, we're probably never going to be close to reaching my.
I'm not kidding aside I think the rep productivity has significantly increased year over year I mean, if you look at it even for me UCP perspective, we ended the quarter at 62, a year ago. We're at 64, you can see that they more than doubled deal growth, which.
With a couple of that are.
What I can't even personnel I would tell you that the level of execution across our organization, both EMEA and North America or travel is significantly improving and we're seeing much higher there is always room for improvement and I believe we can still drive a better.
You know rep productivity and we're very very focused on being very intentional on how we're driving improvements derive productivity.
Got it helpful and then.
One of your kind of three key areas that you outlined Andreas.
Well, we will focus on the extensible item because I think we all really understand what land and expansions generally mean overtime, but as you look at what you announced today or talked about what the every Monday marketplace. You know what does that can now makes on that opportunity to look like for the company is this something that can be meaningful over time or is this kind of a nice add on.
That really just kind of helps your involvement in that ecosystem, that's really maybe less tangible on the economic side help us kind of balance what that looks like yeah no.
Great question, Scott I think it has it is.
Potential for several reasons one with this marketplace. If you think about your digital experience in e-commerce as the front end of every business.
And you have a lot of companies that want a tailor made that experiencing creative Barry.
Cost of mice and in marketing oriented user experience this ecosystem and marketplace will allow third party partners to build on top of our platform. The more they build on top of our platform is that it allows more of our solution and obviously us it'd be part of more.
You know of those revenue opportunities for our customers and bring the intelligence and all day full capability is not just around the offer of marketing, but the full offering and order management capabilities. So we see this as very strategic.
Firstly for us as well as for customers, giving them a better user.
User experience on the solution. So I think this is a big opportunity and also as we add both our partner same froze more applications those applications any customer can activate so it's also part of or expand our strategy as well.
Got it very helpful. Congrats on a good quarter again.
Thank you.
As a reminder, the star one on your telephone keypad, if he would like to ask a question. Our next question is from Neil Chatterji with Northland Capital markets. Please proceed.
Oh, yeah. Thank you.
Congratulations on the strong subscription revenue accelerating from 14% of the June quarter assumption person's quarter.
Especially given the.
With the current macro environment.
And you may have already answered. This question, but you are guiding subscription revenue decelerate until 11% year over year well.
Why is that.
Yes.
I'll take that so if.
If you may recall last year, we had.
We had a one time term license renewal that was in our Q4 results and if you go back and look at the numbers you can see that pop that actually occurred. So that's not a recurring type of a renewal and so we benefited greatly from that renewal last year and we're not getting that.
This year and then I did comment we are starting to see a little bit from currency. So currency is starting to creep into our numbers on a year over year basis and.
When you look at I mentioned about a one percentage point impact.
It's a little slightly more than that on the subscription side, but but those are the two reasons I think you take those two things away and were very comparable to where we were in Q3.
Got it and what was the magnitude of it at one time from license when I sit and look for Q.
It was it was a little over $1 million.
Got it okay great.
Okay and then.
On just the customer value assessment I believe this is a second generation of the study correct yes.
Yes.
Yeah.
We've launched we've published that publicly.
You know in our website, yes.
Okay, and I recall that the first generation I think we're studying stuff like Oh, it was like a 4% to 6% revenue uplift and now you're talking about an 80% revenue uplift.
Yeah. The first generation, we talked about more than 6% the actual average it's 8% revenue.
Oh I see got it.
So Jason.
So operator you have.
No change is the actual average and before you know, we're a little bit more conservative. We said it was it was greater than 6%, 8% happens to be.
This is the actual average of the pool.
You know that in your case study. So it's really an 8% on average 8% revenue improvement 205 hundred margin basis point improvement in the 67% improvement in efficiencies.
Awesome, great those are fantastic numbers.
Yeah.
We have reached the end of our question and answer session I would like to turn the conference back over to management for closing comments.
Thank you for listening to today's call. We look forward to speaking with you at conferences and events. This quarter, we will be attending the Stifel Midwest. One on one growth conference on November 10, the Needham Virtual Tech Conference on November 17, and also the Craig Hallum Alpha Select conference on November 17th if you have any question.
Following today's call. Please contact us at IR at <unk> Dot com, Thank you and goodbye.
Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.
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