Forrester Research Inc. Q1 2023 Earnings Call
Okay.
Good afternoon, and thank you for standing by welcome to Foresters first quarter 2023 conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session. Please be advised today's conference is being recorded I would now like to turn the conference over to the Vice President of Investor Relations Tyson Seely. Please go ahead.
Thank you and Hello, everyone. Thanks for joining today's call.
Earlier. This afternoon, we issued our press release for the first quarter of 2023.
If you need a copy you can find one on our website in the investors section here.
Here with us today to discuss our results are George colony, <unk>, Chief Executive Officer and Chairman.
Chris <unk>, Chief Financial Officer, and eight Swan Chief sales officer.
Carrie Johnson, our Chief product Officer is also here with us for the Q&A section of the call.
Before we begin I'd like to remind you that this call will contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095 words, such as expects believes anticipates intends plans estimates or similar expressions are intended to identify these forward looking.
These statements.
These statements are based on the company's current plans and expectations and involve risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward looking statements.
Factors that could cause actual results to differ are discussed in our reports and filings with the Securities and Exchange Commission and the company undertakes no obligation to publicly update any forward looking statements, whether as a result of new information future events or otherwise.
Lastly, consistent with our previous calls today, we will be discussing our performance on an adjusted basis.
Which excludes items affecting comparability.
While reporting on an adjusted basis is not in accordance with GAAP, We believe that reporting numbers on the adjusted basis provides a meaningful comparison and an appropriate basis for our discussion.
You can find a detailed list of items excluded from these adjusted results in our press release and with that I'll hand, it over to George.
Thank you Tyson I would like to welcome everyone to for sure first quarter Investor call.
As I noted in the 2022 Q4 presentation. The company is navigating through two challenges and uncertain economy, particularly for technology and a product transition to Forrester decisions.
These two factors are having a higher than expected impact on our business and we expect that they will persist through the remainder of the year and potentially into 2024.
Accordingly, we announced the restructuring today, they will downsize our head count by 8% and we are issuing new guidance for 2020, Threep, which Chris will take you through in a few moments.
Despite these challenges we remain confident in where Forrester is going.
Our strategy to drive customer obsessed growth for business and technology leaders is resident with clients.
We have a new product that delivers proven high value to the large companies. We serve we have over 2600 global clients and the brand remains well known and respected.
Business and technology have never been more complex and fast moving our clients' need for shares guidance data more than ever as they seek to be increasingly digital and grappled with new technologies, such as generative AI.
Our team is prepared to weather this storm and get the company back on track to grow contract value.
I would like to review a few key numbers from the first quarter.
In the first quarter of 2023 revenue declined 9% adjusted operating margins of 7% were down four points versus the prior year period, and EPS was <unk> 27.
40% decline from the prior year.
Total contract value for the quarter was $347 million and wallet retention declined two points quarter over quarter to 92%.
Given our results. The natural question is what has changed since we last reported.
And there are two factors that would call out.
Number one since the last earnings call in February the macroeconomic environment has worsened.
In addition to the ongoing banking crisis inflation continues to remain high and the uncertainty around the duration and depth of a potential recession has intensified.
These conditions are affecting Forrester our clients in the technology industry and a large user clients in particular financial services.
If I had to summarize the environment I would characterize it as a waiting game with budgets restricted and spending sitting on the sidelines.
Over the last year the technology sector has been one of the hardest hit we.
We saw initial rounds of layoffs in the back half of last year and they are continuing now.
Now this directly affect us whether it's because a key contact has moved on overall budgets are constrained or buying decisions are being delayed.
The second factor is the transition of our research contract value over to force your decisions and effort that has not come without pains.
Well this product has been well received it is taking time to move our base to this new platform.
As you will recall nine months ago, we made the decision to move faster on the transition based on high early adoption rates and positive client feedback.
Accelerating the transition with the registration to make even though it is causing the delay of some renewals.
And this has been compounded by my first point, we're making a transition in a time of uncertainty we are doing to hard things simultaneously.
So let's spend a few minutes digging deeper into the transition.
As a result of the decision to move faster, we're seeing a slowdown in our new business as well as longer sales cycles overall.
Now this should be temporal.
Under the leadership of Nits want our Chief sales officer, we are enabling our sales force to call hiring companies and for salespeople to more precisely articulate the value of Forrester decisions.
We're going to hear from Nate in a few moments.
Given these challenges why are we confident moving forward.
First and foremost we believe the Porsche decisions holds great promise in our effort to grow contract value at double digit rates.
The metrics around the product continued to be strong thereof, pacing metrics for our legacy research products.
At 87% client retention proportional decisions is 13 points higher than our legacy products.
Wallet retention for Forrester decisions remains higher than our legacy product at 93%.
It's 16 discrete services will drive cross sell we believe wallet retention for fortunate decisions will ultimately run above 100%.
Client engagement continues to outpace our legacy research clients spend 35% more time on the Forrester decisions platform.
Client, scoring of our guidance and inquiries sessions. These are central features of the product is averaging six six on a seven O scale and these are some of the highest client satisfaction scores we've had for any forrester product.
At the end of Q1, 44% of our CV has now moved over to Forrester decisions.
This is up 12 points from year end.
We've made a good start in achieving our goal of building two thirds of CBD for sure decisions by the end of the year.
And a final note on Forrester decisions. The total economic impact team at Forrester has recently completed a <unk> study of the product.
46 current clients reported that Forrester decisions has had four impacts on their businesses.
One it increase the success rate of transformations by 25%.
Two it's speeded up transformations by 50%.
Three it increased the revenue stream for new products by 4% and four it saved executive time.
Clients reported a return on investment from Forrester decisions of 259%.
The Ti study is available on the Forrester investor portal.
The second reason that we remain confident despite the economic moment is that we continue to stay on offense to improve our business and these include one moving our sales force and go to market from good to great by improving enablement process and sales methodology.
Nate will give more details shortly but I wanted to report that he has been an excellent add to the team, especially given his deep prior experience in the research business.
Is planned for leveling up sales is simple powerful and market proven.
It is used a reduction in force to get a head start 1 billion optimized sales structure.
Two we are engaged in continuous innovation to improve forrester decisions and add new features to the product.
This includes beta testing two new research artifacts that will be operational by the end of the second quarter.
And unsurprisingly, we are investigating how we can use generative AI to make it easier for clients to access our research and data.
We see this technology is a game changer for our business unlocking higher value for our clients without requiring human intervention.
Three as I noted above with sales we are using the restructuring to optimize research and our functional teams to put us in the best position to get the highest return from Forrester decisions.
These moves include improving the client on boarding process.
Sunsetting noncritical products.
Fine tuning marketing to drive the quality and quantity of leads and investing in better sales technology, we want to move faster and simplify the business and we are using the restructuring to do both.
So in conclusion, we continue to expect 2023 to be a difficult year, not only for forrester, but for the market and for the customers that we serve yet.
Yet we remain confident and we are pushing forward to build a CV growth engine that can generate double digit growth as it did in <unk> 2021.
Even in recession companies must see the future make better decisions and execute if theyre going to win server retain their customers Forrester helps them do just that.
I would now like to hand, the call over to <unk>, Chief sales officer, and following nature marks Christopher will give a financial update and then we will take questions over to you Nate.
Thanks, George and good afternoon, everyone I look forward to sharing my learnings from my first few months at Forester as well as the plans. We have started to implement with the sales force and where I see us continuing to evolve and develop.
Let me break this into three parts first is a realignment of the sales team.
Second is how we're changing the way our sales teams, calling customers and third is the people that will help enable and drive all of this.
Starting first with our realignment.
We are and have been taking actions to allow us to refine our go to market strategy and focus on high value Forrester decisions services that deliver tremendous outcomes for our customers as part of this we are laying the groundwork to create new vertical sales teams within the organization. In addition, we are creating dedicated leadership to <unk>.
Service, our regions North America, Europe , and APAC. We are also creating a dedicated new business role to focus on user and vendor opportunities.
Finally, I've hired a senior government sales leader that will help us capture that opportunity. These changes will create efficiencies better enablement and expertise within our teams.
As George mentioned on last quarter's call. The company spent the first half of 2022 aggressively hiring to drive CV.
As the technology sector has continued to slow with multiple waves of layoffs. We have made the difficult decision to realign our sales force and cost structure with our expectations.
These are obviously never easy decisions, but I'm confident we have the right team in place to deliver on our commitment.
We've reduced quota bearing head count by approximately 14% from 426 at the end of the first quarter to 365 today, which is where we were in 2021.
This is better aligned with our go to market strategy of refocusing upmarket on technology providers and on the end users.
Second we are optimizing the way we call on our customers.
We've learned through the transition to Forrester decisions is that we need a new approach to enablement we.
We have a good sales team in place, but to take them in the organization to the next level, we need to enable them to sell higher into the C suite.
This is where a customer obsessed decisions are made and this is where our sales organization needs to pivot where early in the journey of enabling our salespeople to call on these personas and I expect we'll make good progress here this year.
As a part of this we've created a new sales center of excellence at our Cambridge, Massachusetts headquarters, while we will still recruit develop and promote in markets around the U S. We will emphasize hiring world class talent in and to the greater Boston area.
This will create a centralized location, where our sales teams can come together to learn from our leaders as well as one another and grow into the sales team that we want to be we have the facilities in Cambridge to support that growth and we know there's talent in that marketplace.
Finally, it's our sales leadership team that will help usher forester into a new phase during this transition to Forrester decisions.
As I mentioned previously we are hiring new leads for geographies and other business verticals a key hire that we made at the end of the first quarter was the new head of sales operation and enablement.
Person has many years of experience in this space and she has been through similar transitions. This new position will help tie everything I just mentioned together.
She'll help to teach and enabled our sales force to sell to the C suite connect their priorities to great outcomes on customer obsession simplify and measure how were performing and build cross functional selling.
We have work to do but this is a key position that I'm very happy we felt.
Let me summarize with this my first hundred days here have been filled with change and opportunity I remain confident in the value of the sales team can drive for this organization and what Forrester decisions can bring to our clients and future clients.
With the team we have in place and the positions. We are building out I have full confidence in achieving two thirds of CV on Forrester decisions by the end of the year setting the company up for strong growth in the years ahead.
I look forward to continuing to meet with all of you and sharing my thoughts and progress let me now hand, it over to Chris to go over financials Chris.
Thanks, Nate and good afternoon, everyone.
Georgia covered a great deal already today I'd like to provide you with a detailed overview of our first quarter results additional details of the cost reductions that we announced today in our updated guidance.
Forrester is going through a major product transition during difficult economic times, our financial performance. This quarter fell short of what we expected and our outlook for the year has softened based on our Q1 performance and increasingly difficult macroeconomic environment that we're facing with.
Today, we announced a restructuring plan that not only aligns our cost structure with our revised revenue outlook, but as noted by Nate earlier in his remarks, better aligns our organization to more efficiently go to market, while creating a foundation for CV growth and margin expansion in the future.
Let me now get into a detailed overview of our first quarter results rare.
Revenue in the first quarter was $113 $7 million, representing a decline of 9% year over year total.
Total contract value for the quarter was $347 million flat to last year and wallet retention declined two points quarter over quarter to 92%.
Regarding Forrester decisions client retention was 87%.
Retention came in at 93% for the quarter, both down from prior quarter, but still outperforming the overall portfolio metrics.
As discussed last quarter as we continue our migration efforts, we expect overall wallet retention to be a bit lumpy, but ultimately to be consistently above 100%. Once we are fully through the product migration. We continue to make progress on our migration efforts with forest decisions now at 44% of our total CV exiting the first quarter.
<unk> up 12 points from when we last reported.
Now for a deeper dive by revenue line.
Research revenue came in at $89 million for the quarter, a decrease of 6% compared to the same period in 2022.
This performance was impacted by flat growth in CV with revenue from our subscription research products growing 2% offset by a decline in our reprint product.
Other smaller and discontinued products are.
Our CV performance was affected by both a decrease in wallet retention, which declined 11 points year over year, which was primarily due to lower enrichment as one dollar retention was steady.
And a decline in new business growth.
Client retention and client count were also both down from Q1 last year. However, as I've mentioned previously the metrics or how far should decisions continued to perform above the overall portfolio of numbers that we're reporting.
Our consulting business posted revenues of $31 $8 million in the first quarter a decline of 17%.
These declines are largely driven by macro environment impacts given everything we've mentioned previously coupled with the ongoing focus on CV during this timeframe.
As part of our restructuring we are shifting away from exclusively selling custom consulting to developing pre packaged offerings that can be sold specifically with forest in decisions alongside our existing custom consulting we expect this change to lead to improved product performance client engagement and retention of ours to decisions we continue to.
Take action to organize around what our clients need and to better serve them.
And finally in terms of our events business, we had minimal revenue in the first quarter as we did not hold any events during the period.
They may continue down the P&L on an adjusted basis.
Operating expenses for the first quarter decreased by 5% driven by lower compensation costs professional services billable fees and rent.
Largely driven by the lower growth on the top line operating income declined by 43% to seven $5 million or six 6% of revenue in the current quarter compared to $13 1 million or 10, 5% of revenue in the first quarter of 2022.
Interest expense for the quarter was meaningfully higher at $8 million as compared to $6 million in the first quarter of 2022.
Finally, net income decreased 40% to $5 $1 million compared to $8 $6 million in the previous year's period earnings per share decreased 40% to 27 <unk>.
Compared to 45 sets in the year ago quarter looked.
Looking at our capital structure, our first quarter cash flow from operating activities was $12 3 million in capital expenditure was $1 6 million.
We paid down $15 million of debt during the quarter, leaving us with $35 million of outstanding debt, we did not repurchase any shares in the quarter, leaving us with approximately $75 million of our stock repurchase authorization intact.
And we exited the quarter with $121 million of cash and investments on hand.
As we've discussed today, we have taken actions to better align our cost structure with our revenue forecast and to refine our organization to drive CV growth more efficiently and effectively.
As was noted earlier, we have made changes that will improve our focus on selling the vertical markets new business growth and selling higher in the organization along with building out a world class sales center of excellence at our Cambridge headquarters to train and enable our sales force.
I'll now provide some additional details regarding the restructuring.
We have reduced our workforce by approximately 8% along with reducing our lease footprint by closing three U S and one international location in an age of hybrid work, we're moving towards larger office hubs that'll be our centers for in person collaboration training and client work.
We expect to incur approximately $10 million to $11 million of costs with these actions, including approximately $2 million of noncash charges and we expect our structural cost savings net of reinvestment to be approximately $40 million on an annualized basis.
In terms of guidance for the full year the reduction in costs allows us to essentially maintain our margin range for 2023, while at the same time setting us up for margin expansion once revenue growth returns.
Revenue is now expected to be in the range of $475 million to $495 million. This guidance assumes a mid to high single digit decline in our research business a decline in our consulting business in the high teens and a low single digit decline in the events business for the year.
Operating margins are now expected to be in the range of 11 five to 12, 5%.
Interest expense is expected to be approximately $3 million for the year, but we are continuing to guide for a full year tax rate of approximately 29%.
Taking all of this into account earnings per share is now expected to be in the range of $2 to $2 20.
We firmly believe we have the right strategy in place you have heard from Nate who has taken large steps in this first hundred days and you've heard from Georgia myself regarding the actions we've taken over the last two months to better align our cost structure with our expectations as.
As we've outlined our focus on CV and on our transition of Orissa decisions continues, albeit with a challenging macroeconomic backdrop.
But we're making progress against our goals faster decisions continues to grow as a percentage of CV are key retention metrics continued to be better than the overall portfolio metrics and most importantly client feedback remains strong.
Difficult decisions in the past few months, but we've taken those actions in an effort to improve our performance and better prepare Forrester for what's ahead.
Thank you all for taking the time today, let me now hand, it over to George for some concluding remarks before we get into Q&A.
Thank you Chris.
While the first quarter played out differently than we had expected we have taken actions to position the company to return to growth.
Our restructuring aligns expenses with expected revenue.
Under <unk> leadership, we are taking sales from good to great.
And we continue to push forward to transition our clients to a power research platform Forrester decisions.
In Forest, there's 40 years in business. It has weathered a number of challenging economies and technology changes.
We emerged from all of those moments as a stronger company.
Through the agility and creativity of Foresters people, we will move forward to resume growing research contract value.
With that I'm going to hand, the call back to the operator, and we will take questions.
Thank you ladies and gentlemen, if you have a question or a comment at this time. Please press star one on your telephone. If your question has been answered already we're seeing with yourself from the queue. Please press star one again, we will pause for them, while we compile the Q&A roster.
Okay.
Our first question comes from Andrew Nicholas with William Blair. Your line is open.
Hi, good afternoon, thanks for taking my questions.
George I think you mentioned in your prepared remarks, you kind of laid out the two major areas, where things have changed since last quarter totally understand the macro environment, but I wanted to ask about maybe what's gotten worse on the FD transition versus a couple months back it seems like.
Your expectation is still to reach two thirds of CV growth by the end of this year. So is it just taking longer than expected is there more attrition than you had expected on the legacy business, just trying to get a little bit more color on on what.
That piece of what's changed.
Yes, I mean look.
This transition is not going to flow.
In a predictable way quarter to quarter Andrew.
Early results were good results are still very good renewing at higher rates et cetera.
It's just lumpiness on this.
And that's just what's happening.
And I think the business is also a factor here, we're not moving as quickly.
We're fortunate to new business.
It's doing a lot of work here to rebuild the new business team that's going to help it.
Again, this is not going to be easily predictable.
It will be lumpy quarter by quarter.
As it was.
Understood and then do you think like does the higher ticket price on FTE.
Anything to do with it or is it just more about kind of budget freezes in general.
I think look this is not compared to two.
Two large consulting contracts.
This is not a high priced product.
But it is definitely a 20% up from the from the legacy products. So there's a little bit.
You can see there.
But it is.
It's primarily clients holding onto cleaning onto the old.
Sirius decisions unfortunate legacy products.
And it's just taking time to move them to the new model.
Help them understand the new mountain, whether the model is it.
Much higher value products.
Ben than either of those two old legacy products.
So.
Yes.
Instead, you are carrying on this I think you said it right.
In terms of turning to new business team toward a different buyer.
Sure.
A new value proposition more so even than the price point I would say.
Forrester like George said, we're excited about what this can do.
No that will get to our goals by the end of this year.
Thank you Andrew just a little bit of.
So for large tech companies.
This is we are now going to market with them two ways F&I is to help them with their go to market, but for sure decisions is helping the CMO the CIO.
Our head of sales et cetera in new ways, which we which.
Which we really never worked for them before.
So this is it's a new motion with the vendors and Thats taking time.
<unk> that into into.
Understand and accept that so that's also that's also slowing us down a little bit.
Got it no that's all very helpful and then.
For my follow up question I wanted to ask on the consulting side.
You mentioned shifting away from custom consulting doing a little bit more in terms of packaged consulting could you spend a little bit more time talking about that shift.
Is is that the primary driver of the.
Lower revenue expectation in consulting or is it macro related thank you.
Sure. This is Gary I would say twofold, we have.
In the last few quarters seen slowing demand.
Separate of the packaged consulting.
Chris mentioned, both in our strategy consulting and in our content marketing businesses.
This is a tough compare by the way to 2021.
And even into the first half of 2022, so that's largely the macroeconomic conditions.
While consulting is a critical part of our business. Our sales force really is laser focused on growing CV.
And we believe that this right sizing consulting a consulting business that we talked about today as part of our restructuring plans to move to these pre package consulting that is really more tied to forrester decisions and outcomes of our clients as it relates to that we really think that will help.
Drive some of the consulting business moving forward, but CV as well and frankly more profitably.
Thank you.
One moment for our next question.
Our next question comes from under sort of storm with Sidoti Your line is open.
Thank you for taking my questions.
So.
Do you think.
This headwinds due to macro environment compared to just.
The internal transition to the <unk> first the decision.
A question, we ask ourselves all the time actually.
I'd say, it's 50 50.
That range looking around the world beer ads or not.
Its probably its probably you guys have boats.
As the environment.
Okay and.
No.
Can you just talk a little bit more in depth I'm, sorry are you changing the go to market.
Reaching this other C suite.
We have the sales force you have.
Yes, absolutely great question. So I recently brought it and this is Nate speaking by the way I recently brought in a new head of operations and enablement and really excited about her.
Joining the team.
We are going to be very focused on enabling the team to call higher in the organization.
Traditionally with our legacy products, we did not need to get to the C suite, we really believe that.
That is where the value of this FTE product is and not only where the value is where there's a lot more money for us to expand because once you get to that level. You will then have additional opportunities with teams seats and other follow on engagements, whether it's additional seats or consulting engagements that prepay.
<unk> engagements that carry was speaking to them that's a transition for our sales force and so we need to do a better job of enabling them to have those conversations so I am expecting over the next two quarters that we were really step up our game.
And enabling them to have those conversations about what does it mean for a C level executive whats the business impact to them. What initiative are they working on outcome or are they looking for and they have to have confident conversations align that I've used in my sales career is people don't buy because they're convinced they buy it because you are.
We're convinced and we need to work on our conviction of being able to walk into a C suite and say, we can impact your organization and we have a law.
Low cost investment that is actually going to be able to do that so I expect to see a lot of progress on that we've got a plan that we're working on with my leadership team to roll that out.
And we'll be working on that throughout the rest of Q2 and into Q3, and hopefully be able to start having some impact on that later in the year probably at the end of Q3 Q4 timeframe, so expecting some change from that perspective.
Okay, and then in terms of the head count where again most of the cuts being done.
Yes, it's a good question this is Chris.
So as you mentioned the reductions of about 8% overall.
To better align our cost structure with the outlook for the balance of the year.
Packaging areas are really materially across sales and consulting.
Sure degree against G&A and research specifically with regard to research, though it was a small number of roles Youre looking at there were certainly well resource.
To serve the needs of our clients. So we just didn't have a robust research agenda and the coverage areas remain unchanged as we go forward here.
And as you don't really break out the numbers by functional area per se about half of it the restructuring was in sales.
As you might recall from the last restructuring that we did back in January but have been together as part of the plan they had.
Just starting with the organization and so sales wasn't really effective at that time. So we wanted to give him some time to ramp up and really do a thorough assessment. So that's what's reflected here in restructuring now the rest of the restructuring as we shared with you are largely in consulting with us changes focused on their realignment selling pre packaged consulting offering.
<unk>.
And then Sean streamlining of our content marketing.
Business and then from a.
Our location perspective.
Three quarters of the restructuring was really in the U S and the rest of it was international.
Okay.
And in regards to the 40 million in annual cost savings you're expecting.
Is that kind of thing.
When is that going to stack it starts pretty much immediately.
As you can imagine the majority of our savings are coming from labor, it's about <unk>.
Millions of 2014.
And then the rest of it is coming out of rent and a few other smaller buckets.
Okay. Thank you that was all for me.
Thank you very much thank you.
One moment for our next question.
Our next question comes from Vincent Colicchio of Barrington Research. Your line is open.
Yes, George I am curious what portion of client losses do you think are clients that are not buying into the ft vision.
And through it.
Yes. This is Terry.
Renew the old product.
This year so.
Don't think thats.
Clients necessarily opting out they just don't have the option to renew the old.
Earlier, some of our challenges more on the new business side.
And.
Another question on the client losses is there some sort of commonality.
Last quarter I think you had a lot of small companies.
Clients that.
You lost.
Is that still the case or is it more enterprise as well and are there any verticals that are especially an issue yes.
Again, continuing with small vendors.
The small vendors rollout on the tide and rollout of the tide there currently rolling out.
So unfortunate decisions is really it.
It is it is a bit more expensive.
For those players and it's really designed for large user enterprises and Nate.
If you look at our go forward for sure is about CV and worry about calling higher and we're about more users more user more use it more.
User enterprises.
So again to answer your questions mainly small vendors.
And what is the what are the company's thoughts on repurchasing stock given.
We expect the weakness.
I had.
Yes, so it's a good question Vince.
Our priorities are pretty much remained the same when it comes to use of cash and capital allocation reinvesting in the business being opportunistic creating value.
With that M&A opportunities and paying down debt right now we are.
Being just conservative and keeping powder dry as we go forward here. So while we still have approximately 75 million on the stock purchase authorization.
That is still very much in place, but we are not contemplating any stock repurchases at this moment.
And one for Nate.
How would you say the morale is in the sales force.
As in voluntary sorry, as voluntary attrition picked up I know, it's a tough environment out there, but just curious.
Actually the attrition has stayed stay pretty good.
I think the sales force is hungry to be able to be successful and looking to really.
Youre out how how they can be more successful I think they're excited about the opportunity to learn more I think everybody is looking to build skills for sure. One of the things that really strikes me is we are a learning culture, and so people love to learn and develop and grow and we're going to bring that.
Culture into the sales organization as they learn develop and grow there should be more successful and make more money and I think we all.
Our salespeople are very coin operated and they want to make more money. They want to be successful. So I think theyre going to be all in on that.
While it was a tough week for us this week.
I think there are very bright road ahead for <unk>.
This organization to be able to call higher can have impact and be successful and coming out of this they should have the opportunity to be more successful than they were coming into this week to be perfectly honest.
Very difficult day.
On some of this the salespeople should earn more money coming out of this on the other side.
Okay.
Thank you Vince.
Thanks very much.
Again, ladies and gentlemen, if you have a question or a comment at this time. Please press star one on your telephone.
Okay.
And I'm not showing any further questions at this time I will turn the call back over to management for any closing remarks.
Thank you all for joining us this evening this is Tyson.
Please reach out to the IR team, if you'd like to have any follow up conversations in the days and weeks ahead and I Hope you all have a nice weekend. Thank you. Thank you.
Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.
Okay.
[music].
Okay.
Yes.