Q4 2022 Weave Communications Inc Earnings Call
Greetings and welcome to the we've communications fourth quarter and full year 2022 earnings conference call.
At this time all participants are in a listen only mode. A brief 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 and as a reminder, this conference is being recorded it is now my pleasure to introduce to you Mark Mcreynolds head of Investor Relations. Thank you Mark you may begin.
Thank you John Good afternoon, and thanks for joining us for our fourth quarter and full year 2022 earnings conference call joining the call today are Brett White, CEO and Alan Taylor CFO .
We'll open the call with an overview of <unk> performance and strategy and Alan will discuss our final results our financial results in more detail.
After the prepared remarks, we will take questions.
The discussion contains forward looking statements that represent our beliefs or expectations about future events. All forward looking statements involve risks and uncertainties that could cause the actual results to differ materially from the forward looking financial statements.
Please refer to the cautionary language in the earnings release and in <unk> filings with the Securities and Exchange Commission, including our most recent Form 10-K and 10-Q for additional information concerning factors that could cause actual results to differ materially from the statements.
We'll also discuss financial measures that do not conform with generally accepted accounting principles for the sake of clarity unless otherwise noted all numbers. We talk about today will be on a non-GAAP basis information may be calculated differently than similar non-GAAP data presented by other companies a.
A reconciliation between these GAAP and non-GAAP financial measures is included in our earnings press release, which can be found on our Investor relations website at investors docket.
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And with that I'll turn the call over to Brett.
Thank you Mark good afternoon, and thank all of you for joining us today.
I'll start my remarks, with a review of our results for the year before providing a broader company update.
I'm pleased with our fourth quarter performance and how we closed out the year.
We generated revenue of $142 $1 million in 2022.
A 23% year over year increase and above the high end of the initial guidance that we gave at the beginning of the year and also above the high end with last quarter's guidance.
We continue to make significant progress on the path to profitability throughout the year for.
For example, if we compare Q4 2022 to the same quarter in 2021, we improved our gross margin by over 900 basis points and we improved our operating margin by over 2200 basis points.
Our operating loss for the year was 31 million, a 15% improvement over last year and over 5 million better than the high end of the guidance. We gave at the beginning of the year and 2 million better than the high end of the guidance we gave in November .
Our customers have proven to be very resilient in the midst of a challenging macro environment. We saw demand for wheat increase in the second half of the year as health care providers sought out our high ROI solutions to make their operations more efficient.
I want to sincerely. Thank the wheat team for their outstanding work in serving our customers and delivering these results.
We have many reasons to be optimistic that 2023 will be a positive momentum building here, but first I want to look back and share some of what we learned in 2022.
We made a number of changes to our go to market motion and organization at the beginning of 2022, which when combined with the increased employee attrition from the great resignation, particularly in our sales organization put us in a place where we had fewer ramped sales reps in early 2022, and we had in Q4 of 2000.
'twenty one.
Additionally, one of our most important sources of sales leads have historically been in person events and due to the COVID-19 pandemic. We had very few in person events from early 2020 through the first half of 2022 more than two years. These.
These two factors resulted in this challenging first half of the year and a slowing of new customer additions.
In the second half of the year, we began to see improvement in a number of key areas of the business.
The number of ramped sales reps increased by nearly 60% we.
We attended more in person events in the second half of 2022 than in all of 2021.
The number of leads steadily improved.
The number of new customer additions and the average sales price for new customers increased.
And lastly business efficiency initiatives improved both gross and operating margins dramatically compared to the prior year.
By Q4, we had cut our operating loss by more than half from Q1 and Q2 of 2022.
In Q4, we also finalized the most robust annual planning process, we have ever completed at the.
The output of that work was it 2023 strategic plan that aligns us around four focus areas in our business.
Accelerating revenue growth building, a scalable foundation for profitable growth deliver.
Delivering an experience that turns customers in the champions and fostering an effective and engaged team that lives our values.
This detailed plan was rolled out company wide in January and builds upon the green shoots we experienced at the end of Q4 carrying that momentum into 2023.
I want to briefly touch on our plans for each of these focus areas.
As I mentioned last quarter, our revenue model is like a big flywheel that you need to continually impart energy upon to accelerate rotation.
Our challenging first half resulted in our year over year revenue growth decelerating in 2022.
As I noted in my earlier remarks.
The second half of 2022, we saw important improvements in key areas of our business and as a result, we expect revenue to continue to grow sequentially every quarter in 2023.
In regards to our scalable foundation for profitable growth, we are intentionally configuring the business for efficient growth in 2023 and beyond with a constant eye on the macro environment.
We have built our plans for 2023 to accelerate our path to profitability and we expect to exit the year with positive free cash flow.
While we recognize that accelerating our path to profitability may negatively impact revenue growth in 2023, given the uncertainty around macro environment. We believe it is the prudent action to take at this time and we continue to actively monitor the environment throughout the year.
Our third focus area is delivering an experience that turns customers of the champions.
Customer churn has remained stable throughout the year as reflected in our consistent gross retention rate.
With a small number of customers that do leave our platform. One of the reasons is that they want to move to a lower cost solution offered by other vendors.
We had close to 100 customers returned to lead this year after leaving for a competitor and nearly a quarter returned within the same month of leaving.
He's returning customers are consistently validating our belief from the very beginning that what they really need is a high quality solution that delivers real immediate and measurable business value that makes their office more productive in their patients happy not a cheap solution.
We continue to receive recognition and validation from our customers that our platform delivers best in class communication engagement results.
In Q4, we've was recognized with key industry awards from each of our three core verticals.
In 2022, we doubled down on customer experience. So we saw significant improvements in our customer N. P. S score throughout the year.
We accomplished this through creating an excellent customer experience delivering feature improvements requested by our customers and increased intention to new integrations.
We had to integrate we added new integrations to practice management systems within our core verticals during the quarter and we are focused on continuing to execute our integration playbook in 2023, as we deepen our penetration into our core markets.
Our product and engineering teams deliberate several important platform improvements in Q4, including the launch of phone reporting analytics for a multilocation customers in a more integrated online scheduled in future to give offices flexibility and schedule a different appointment types and providers.
Our fourth focus area is one critical to our success.
Fostering an infective and engaged team that lives our values.
And effective and engaged team translates positively as the customer satisfaction and customer retention.
I'm happy to share that we have continues to be recognized for our outstanding company culture, and our diversity equity and inclusion efforts.
In Q4, we were named a top workplace by Salt Lake Tribune with the only Utah based company honored nationally for our D E and I practices.
Receiving local recognition is important for us as we aim to attract and retain the best talent.
I am proud of what we've accomplished in Q4 2022 was a challenging but pivotal year for our business.
We made a lot of important progress towards configuring, our business for growth and success and have taken significant steps to improve our efficiency.
I believe that we are set up well to build momentum into 2023, as we continue investing for future growth, while remaining focused on delivering strong operational performance.
With that I'll turn the call over to Alan to review, our financial results and outlook Alan.
Thanks, Brett and good afternoon, everyone I'd like to start with a brief recap of our full year results in 'twenty 'twenty. Two total revenue grew 23% to $142.1 million subscription and payments revenue grew 25% to $136.6 million.
With improved unit economics, and operating margin improved over 900 basis points I'd like to take a moment to thank all of our team members that we've our customers and partners for their contributions throughout the year.
We delivered fourth quarter revenue of $37 $7 million, reflecting 18% growth year over year.
This represents 3% or 1.2 million over the midpoint of the range, we provided last quarter.
Subscription and payments revenue grew 19% to $36 $2 million year over year increase was primarily driven by new customer additions over the last 12 months as we discussed last quarter. We ended the relationship with our third party digital forms provider in August of 2022.
We now offer our customers a more fully integrated digital forms product built by we've.
We have seen positive adoption by our customers and recurring revenue for our digital forms offering increased over 85% year over year.
The transition negatively impacted net revenue retention and revenue growth in Q4 as it will take some time for our in house digital forums product to fully replace the partner product revenue.
Our net revenue retention rate was 99% in Q4, however, excluding the impact of the third party provider and are are remained over 100%.
Our gross revenue retention rate remained consistent at 94% where it has been for the last five quarters. This demonstrates that our customers remain stable and avid users of the Wii platform, even in the midst of the macro uncertainty.
Moving onto our operating results as a reminder, I'll be referring to non-GAAP results unless stated otherwise.
Our Q4 results showed consistent improvement across the board gross margin was 67%. This represents a 16% improvement year over year, we've taken steps to rationalize our discretionary spend and streamline our operations operating expense was $29.4 million approximately.
A $490000 increase from last year compared to a 5.8 million dollar increase in revenue for the same period, we made a considered focus on operating discipline in the second half of 2022, we expect to refine this approach to support scalable growth going forward.
Our operating loss was $4 $2 million, an improvement of roughly $6 4 million or 60% compared to last year, representing a 2.8 million dollar.
Pete over the midpoint of the range, we provided last quarter.
The corresponding operating loss margin of 11% is a significant improvement from the operating loss margin of 33% last year.
Our net loss was $3 $7 million or six cents per share in the fourth quarter based on 65 6 million weighted average shares outstanding.
This is compared to a net loss of $11 million or 26 cents per share last year.
Adjusted EBITDA loss was $2.4 million, a 7.3 million dollar improvement year over year EBITDA loss margin of 6% is a significant improvement compared to the EBITDA loss margin of 30% reported a year ago.
We continue to have a very strong balance sheet with $113.3 million of cash and short term investments on hand as of the end of the quarter, we have plenty of liquidity and as Brent mentioned, we plan to exit 2023 with positive free cash flow.
Looking forward to 2020 three as Bret discussed earlier, we've made a decision to accelerate our path to positive free cash flow, while taking a cautious approach to our revenue guidance, we've been managing our spend and the growth in operating expenses has trended down from 40% in 2021% to 17% in 2022, we are.
Expect less than a 5% growth in operating expenses in 2023.
We believe accelerating our path to profitability, while continuing to build for future growth as the optimal decision, especially as especially as companies are operating in an environment of high interest rates and macro uncertainty.
We believe our guidance appropriately incorporates the macro challenges we see in the market for the first quarter of 'twenty 'twenty. Three we expect total revenue in the range of $37 5 million to $38 $5 million and non-GAAP operating loss in the range of $5.5 million to $4.5 million.
For the full year 2023 we expect total revenue to be in the range of 156 million to $160 million. We expect our full year 2023, non-GAAP operating loss to be in the range of 21 8 million to $17 $8 million, which assumes continued progress on our path towards profitability.
Ability, we expect to have a weighted average share count of approximately 68 million shares for the full year.
With our leading all in one customer communication platform and our improved go to market model, that's showing increased leverage we believe we're well positioned to capture the large market opportunity ahead of us looking forward, we're confident in our ability to drive another year of consistent revenue growth as we drive towards positive free cash flow.
So exiting 2023.
Now Britain I will take your questions operator.
Thank you we will now be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue. You May press star two if he would like to remove any question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
One moment, please while we poll for questions and we ask that you. Please limit yourself to one question and one follow up thank you.
Our first question comes from the line of Alex Sklar with Raymond James. Please proceed with your question.
Great. Thanks, Brett I wanted to follow up on one of your prepared remark comments on the pickup in live events I appreciate the color already on the on the second half of 'twenty, two being greater than 2021 anything you can share in terms of the number of touch points Youre looking at over the course of 2023.
Or is that getting back to pre pandemic level and I know you have some other maturing digital motion, but how.
How should we think about live event.
In terms of kind of overall contribution.
Your pipeline growth. Thank you.
Sure. Thanks, Alex.
So we saw it live events pick up meaningfully in the second half of Q4 was was strong we were expecting live events to continue to pick up in 'twenty three and we're planning on investing around those were also probably attending more events than we would have traditional.
Because we've just gotten better at bringing.
Bringing leads out of the events bulk sales that show and then sales after the show. So following up on leads but we're still not back to kind of pre COVID-19 levels, yet and I don't think we're planning on that for 'twenty three quite yet.
Okay, Great I appreciate that color and then Alan I guess one for you.
As we think about kind of what you're embedding in the growth outlook as far as location growth versus N. R. R improvements I get you're lapping some of the forms headwind, but any help on kind of how we should think about that split for 2023.
So Alex you saw about a 14% growth in location count in 2022 although we're not guiding to location growth. There I do think that we're going to see some consistent.
Quarterly growth as Brad mentioned, we see sequential growth.
Quarter over quarter, and we exited the year with the highest growth that we saw in all of last year and we anticipate that continuing so as you know right now those those signs and the trend lines are good on that score.
Okay, great. Thank you both.
And our next question comes from the line of Parker Lane with Stifel. Please proceed with your question.
Hi, This is Matthew kicker on for Parker. Thanks, a lot for taking my questions I wanted to start on and net dollar retention drop below a 100% on the quarter do you have any long term targets round N D. R and what are some past that you think you could take to increase that over time.
So thanks Matthew.
And our our who mentioned excluding the impact of the digital <expletive> proprietor would've still been above 100%. The the calculation for that is a trailing 12 months. So it takes a while to turn that thing around but we do have plans in place both on our roadmap and on our payments solution.
That will it will begin to address that as we go throughout the year, but it's now going to turn around immediately just given some of the drag from that the previous quarters and the digital foreign get provider, but the you know we've introduced new products that we get are our own digital forms product, we've got our payment solution, where we are.
We're emphasizing both growth in customers growth in our process processing volume and expansion in our net yield all of those things are areas of focus that we believe will continue to help us bring that net revenue retention level backup I would just add one other thing on the net revenue retention and that is.
Yeah.
He is a SaaS business or are we charge our customers on a location basis. We also tend to land pretty heavy in these customers, meaning that they buy are kind of high end solution and so from a from that standpoint, we are a little bit different than that then a subscription model where theres new.
Drivers being added as businesses grow back following the pandemic or the recession, but we still look forward to improving that net revenue retention.
By the means that I, just discussed on product and on payments.
Got it and then I wanted to dive a little bit deeper into a payment solution that you mentioned in that answer what's the traction been like for that product and how our adoption rates varied by vertical and are you, making any new investments there in 'twenty three.
So the adoption rate is good weeks continue to prove out new means of going of going to market. There. We are seeing our processing volumes increase we're also seeing on a per location basis well. We've also been working hard to improve our net yield and I think that.
We need we will continue to make good strides on just improving the integration of the payments business with the overall communication tools that we provide that provides a.
Our competitive edge honestly for us to put those into the mix when whenever our our customers are interacting with their with their patients for their customers.
Terrific. Thank you.
And the next question comes from the line of Matt Stotler with William Blair. Please proceed with your question.
Hey, I appreciate you taking the questions maybe just the first one on the the go to market specifically to the direct channel obviously translate to is a year of transition would love to just kind of get an update on how youre thinking about what's left in terms of go to market initiatives for that kind of direct motion and then how that's playing into your outlook, which like lately.
Sure.
Thanks for the question so yeah really twenty-two was them.
All about Reconfiguring, our go to market motion and we've learned a lot. We've got a model in place now that is working and moving.
Forward throughout 2023.
There's going to be a.
A fair bit of optimization. So we've we've grown our ramped reps pretty significantly during the year.
We've now got a model where actually some of our reps that left are asking to come back. We've had two recent President's Club award winners actually come back because they've heard that good things are happening here. So we're getting good momentum on the sales rep side.
Sales.
Sales and marketing the organizations are really working well together theres been a lot of improvement there.
We have pretty decent I think a lot of small opportunities that add up to a pretty significant number just around optimizing our processes. Our data. Our data flows you know lead scoring a lot of the blocking and tackling that makes a big difference over time when.
And the multiple.
Initiatives are compounded together.
<unk> are happening so I.
I think those are the big changes optimizing how we manage through events, we're learning a lot about new events and how they operate.
And having that really tight collaboration between sales and marketing.
It's showing a pretty significant.
Improvement, but also also opportunity for the future. So it's it's a lot of I think the heavy lifting that the major changes are done and they're working and so now it's just all its all hands on deck on optimizing and and making sure that our CAC dollars being spent efficiently and as we're driving CAC down that.
Frees up dollars to.
Add reps if it's if it can be done efficiently add more lead gen.
So a lot of rural just optimization from for 'twenty three.
That's very helpful color I appreciate that.
And then just as a follow up you obviously.
You've talked quite a bit in the past couple of worried about bringing digital forms product in house and you have a number of other third party solutions that you offer and integrate with how do you think about your potentially bringing some of those additional solutions in house or you know as you as you kind of balance a feature and product expansion from here kind of assessing where it's makes us the partner.
Versus what's more valuable as just kind of a integral part of the platform.
Yeah, So Matt that's a great question reevaluate that.
You know all the time.
The some of the things that come to mind that we've got a BNET buy now pay later solution. We have an insurance verification solution right now the partners that we've got in those areas are working quite well, but we always will be evaluating and trying to not be.
Hostage any one partner if we find that there's better ways to service our customers. Our goal here is to make sure that they've got the tools on our platform. If it has to do with patient communication and engagement that they can use our platform to get that done and so we evaluate those and we'll look for opportunities to bring those things in house.
We'll look for appropriate plug in acquisitions, we'll look for anything that may make our platform more robust to make sure that the customers are served.
Got it thank you very much.
Just one thing I would add to that is.
You know, we we believe strongly in being partner friendly. We don't you don't feel that that we need to build everything ourselves. So like Allen mentioned, we have partners now that are working really really well.
And then also we may over time decide to two.
Acquire some technology or a product through M&A.
So.
We want to be very partner friendly and if the partner solution is is the best way its the win win for US the partner and the customer then we're absolutely open to that.
Got it that's helpful. Thanks again.
And the next question comes from the line of Mark Schappell with loop capital markets. Please proceed with your question.
Hi, Thank you for taking my question.
But starting with you with respect to the macro environment have you seen much in the way of any change in terms of sales cycles or buying behavior or customer attention since our since the last earnings call.
And since the last earnings call now you know, we talked a little bit about it I think at the beginning of the year, where we saw some of the decisions were previously an office manager could just make the decision now maybe the dentist or the bad or that the owner may want to weigh in and be part of that decision. So that's been pretty consist.
<unk> theme throughout the year, but but certainly no additional I would say you.
Sales cycle headwinds in the last 90 days.
Great. Thank you and then just building on the earlier.
Question around go to market I was wondering if you could just expand a little bit on your sales strategy around payments is the company's shelf strategy.
Around payments different from the strategy for the rest of the platform.
Yeah.
Yeah, it's it's a different motion. So you know currently we have four for selling the solution we have.
Inbound.
And then bound sales team at that obviously he handles all the inbound interest we have now bound team.
And then we have a middle market team and then we have an up sell team.
We will on a new sale to a new customer we will introduce them to the payments concept.
And then we are doing some work on the product to actually enable.
The.
Going live with the payment solution, even if it's a if it's card not present only so for example, enabling text to pay straight out of the gate.
And then if a customer is not ready to go yet with a payment solution.
We then hand that off to the upsell team and then they would do a follow up.
And I've seen that worked quite successfully and in prior lives. So that's at very very high level. That's that's the motion and then of course, we have teams that look at usage and make sure that customers, who are signed up for the platform, but maybe on a processing yet or are signed up for the platform and you're not processing the volumes that we think.
Possible, we would have campaigns.
Either in product or marketing campaigns to to reach out to them explain to them the value to their business of the payment solution.
So we're kind of constantly but.
But not annoying Lee informing them of the benefits they could get from a payment solution.
Great. Thank you.
And the next question comes from the line of Tyler Radke with Citi. Please proceed with your question.
Hi, This is Kelly on for Tyler Thanks for taking the question Brett.
Brett you mentioned the 25, returning customers within one month here.
What kind of conversations we're having with the sales team and what were those other platforms. Nothing that was the main driver of Eric Hart.
So.
You know we've has been at this for a while and we have built a very comprehensive deep solution, sometimes when new entrants come to a space and I've experienced this in a prior life as well they will they will make very bold claims for very low prices and customers will say well that sounds good.
Ill go over it and find the.
Either.
The solution is not what they were led to believe or they were really important pieces of functionality that we've that they miss and they need.
Or they you know implementation doesn't go while there's something great doesn't happen and they come back and so that is.
That's great to hear because it just validates the value that the we've solution delivers to our customers, we actually call those boomerangs here internally.
Okay, great. Thanks, and just one more.
Given all the excitement around open AI and chat E. P. T. How are you thinking about the opportunity and you know if if you do plan to integrate the foundation of our model is that something that's built into your guidance in March and outlook or if not you know what what are your main initiatives within R&D. This year.
So I can I can tell you that.
Despite the desire from perhaps our product and engineering team, we did not build revenue into our model this year for our AI enabled.
<unk> enabled products.
Are the.
The major initiatives around our product this year is.
Expanding our Sam so.
Making adding new integrations in our core verticals as well as well as adding integrations to other specialty medical so think med spa plastic.
Physical therapy.
So that would be of the once who expanding the Sam through additional integrations.
Increasing our N RR through deeper integration so our integrations.
Can vary between being very light to very deep and.
And we find that when we deepen the integration it improves customer retention and it actually allows us to sell more products. So.
Those would be too on the on the integration side and then also on the product roadmap, our new products and new functionality. So.
Continuing to deliver product that makes US you know a really attractive platform for multi location theres certain functionality that multis would like and so we have.
Much of those many of those key.
Elements of functionality that multis want on the roadmap.
That will be delivering this year and then also additional products or features that enable us to take additional share of wallet and just be more competitive so that would be I think the bulk of the roadmap for the year.
Thanks very much.
And our next question comes from the line of Jacob Stifle with Goldman Sachs. Please proceed with your question.
Hey, guys check of here.
On behalf of Kash I wanted to ask a quick question around.
What you're seeing and in Q1, thus far I apologize. If this was touched on earlier as well as what what entirely does the guidance for a fiscal 'twenty three.
Encompass from an assumption standpoint.
So in Q1, I think that we've seen more of what we've seen sorry. In Q4, you were seeing some good good momentum exiting Q4, that's carried on.
Through the first couple of months here as we are near the end of February now.
So we're pleased about that obviously in and.
The guidance, we want to make sure that our guidance that we have a high conviction that it falls within the range that we're going to deliver.
And given some of the the economic environment, our desire to make sure that we get to get to cat free cash flow positive by the end of the year with that that's really what is influencing the guidance as we look through the balance of the year, we're going to balance that carefully with the ability to grow though all of the efforts in our go to market.
On the go to market side of our business, which are now coming to fruition with more ramped sales people.
You know less employee attrition all of those things are you know.
Up into the right with respect to.
How were entering this year. So we've added now just make sure that we balance that with the desire to make sure that we move towards quickly towards profitability.
Awesome and then let me just add a little bit to that if I could.
The momentum that Alan referred to just to be clear is you know we've seen.
Really strong lead flow.
We've seen good sales, we've seen strong payments volume so far in the beginning of the year. So those are those are what the momentum that we're seeing and then also you know on the on the growth versus profitability.
To be clear our goal really was to get our engine or grow our go to market engine, our onboarding engine or support engine running very efficiently.
And we that was job one to get get the machine really working well. So our sales teams can be successful so they could they could they could be winning our customers would be winning.
So that that was job one to get insufficient and that was before we put more logs on the fire. If you would to accelerate revenue growth. So I think we're really well down the path of getting the business running efficiently, especially on cancun and cost of delivery and now we're gonna want keep a close eye on that.
Before we start throwing more logs on the fire, but make no mistake. We definitely are are very focused on growing the business. We just wanted to do it in an efficient way.
Awesome. Thanks, so much really appreciate the color guys.
And the next question comes from the line of Brent <unk> from Piper Sandler. Please proceed with your question.
Hi, guys. This is Hannah Rudolph on for Brent today. Thanks for taking my question just first one kind of piggybacking on an earlier question, it's really interesting and nice to hear about these boomerang customary given.
Given this dynamic have you changed the way you position your platform in this environment at all.
Okay.
I don't think we have a lot. We certainly are we have battled cards for our salespeople to more effectively Canada.
Give them guidance around what they might might experience in and even you know.
Have peripheral customers that we can turn them back to you to make sure that they are making educated decisions, but I wouldn't say, it's necessarily repositioning of our platform. It just were better at being able to.
Hang on to those customers or customer success representatives are better able to do that and we get better data with which to do it with.
Great. That's helpful. And then you talked about the return of in person events.
A number of these events and I guess, how are your digital marketing initiatives trending and how you're thinking about these going into this year.
But so lead flow over the last two quarters has as we've.
Seen significant increase there.
Where it and marketing group is very pleased with the kind of run rate that we're on a we're also with our close rates relative to the to the inbound leads are good and are strong and we've been being able to maintain that strength. So overall that that I think is a positive and we're excited about those.
<unk> not only in our core markets by the way, but even even in some of the other verticals. We continue to gain customers outside of our traditional core verticals on on our non integrated products and that gives US you know.
Great starting point for us we.
Decided to expand in the future.
And I'd just add that the marketing team has.
At least the leadership is new at the beginning of 2022 and they spent the year doing a lot of experimenting and working.
Working on understanding what Hum.
What dollar spent were produced the highest returns they are very.
Focused on trying new things if it works great we double down if it doesn't we're totally happy to fail fast.
And they've been become quite clever on on trying new things and seeing what works. So I would say that the digital marketing efforts have improved pretty dramatically. There. It's a very results oriented metric oriented team.
And I'm Super.
Proud of what they've accomplished and the fact that there just always trying new things.
Great that's really helpful. Thank you.
And there are no further questions at this time and I would like to turn the floor back over to Allen for any closing comments.
Yeah. So everybody. Thank you so much for joining us I have been told that I misstated. The guidance for my remarks, I didn't intend for that to be different from what we published in the press release the rate range for the full year 2023, non-GAAP operating loss is 21.3 million to $17 $3 million not <unk>.
21.8 million to $17 million, so wanted to clarify that and with that thanks for joining us and we're looking forward to connecting with you throughout this upcoming year.
This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a great day.
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