Q3 2023 AvePoint Inc Earnings Call
Good day and welcome to the <unk> Point, Inc, Q3, 2023 earnings call.
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Please note that today's event is being recorded I would now like to turn the conference over to Jamie Oresteia, Vice President Investor Relations. Please go ahead Sir.
Thank you operator, good afternoon, and welcome to <unk> third quarter 2023 earnings call with me on the call. This afternoon is Dr. T. J J <unk>, Chief Executive Officer, and Jim Cathy <unk>, Chief Financial Officer. After preliminary remarks, we will open the call for a question and answer session.
Please note that this call will include forward looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We.
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Please note. This presentation describes certain non-GAAP measures, including non-GAAP operating income and non-GAAP operating margin, which are not measures presented in accordance with U S. GAAP the.
The non-GAAP measures are presented in this presentation as we believe they provide investors with the means of evaluating and understanding how management evaluates the company's operating performance.
These non-GAAP measures should not be considered in isolation from as substitutes for or superior to financial measures prepared in accordance with U S. GAAP.
Reconciliation of these measures to the most directly comparable GAAP financial measures is available in our third quarter 2023 earnings press release as well as our updated investor presentation, both of which are available in the Investor Relations section of our website. Lastly, we have added an excel file containing our historical financial metrics to the IR website for ease of reference.
With that let me turn the call over to T. J.
Thanks, Jamie and thank you to everyone joining us on the call today.
Q3 was another strong quarter as we again meaningfully outperform our guidance for both total revenue and non-GAAP operating margins, while delivering total AOR growth of 25% after adjusting for the impact of FX.
Jim will spend more time on our third quarter results and updated guidance, but I would like to spend today discussing the inflection point, we currently face and why we are so excited about the many opportunities ahead of us there.
The digital Revolution continues to accelerate with monumental AI driven shifts happening in business and technology in turn requiring us to adapt faster than ever before.
Just a few weeks ago I point post the chips happens conference in Washington D C.
This two day event featured insights from that point as was our customers and partners.
How to accelerate digital success amidst the hybrid models are fundamentally changing how we collaborate as well as the astonishing potential of AI being able all companies to work smarter faster and better.
Although applications of generative AI are still in early stages. It is clear that AI will drive a wave of enterprise transformation across all industries in the coming years.
According to Gartner, 80% of enterprises will incorporate generative AI by 2026 compared to the 5% of enterprise they have done so today.
Clarity the ambition of organization leveraging AI for competitive advantage and value creation is there.
But as they do so they face inherent challenges in data management and the reality is that today. The number one hurdle for C. I OS that Cisco is data quality and data twice.
I hear there's concern in every conversation with customers and partners and more formal studies also back this up.
89% of executives say the high quality data as essential by 75% of them don't trust their data and 66% believe they're below average in managing the information lifecycle property governing the data and ensuring its compliance.
So AI projects to succeed organizations must address these data challenges by applying key strategy to better manage clean enrich their data.
This is where the power of Apple and confidence comes in and why we believe <unk> can be a key enabler of generative AI adoption within enterprises in the coming years.
On a daily basis, we manage more than 250 petabytes of data for our customers and partners, enabling them to modernize control and up high resilience for their data management practices and we have a proven time tested playbook to do so which is only becoming more relevant with the desire to leverage AI.
Across businesses of all sizes around the world.
Specifically these are the steps, we take with alpine competence parcel.
One we bring together data from all repository and sources across the enterprise to ensure that the data is property classified any attack and three we implement the correct lifecycle and access controls for that data.
Organizations today are under pressure to use their own data on top of foundational AI models to solve real business problems and drive purposeful outcome.
These steps are powerful because they quickly alleviate that pressure by establishing a strong data foundation paving the way for a impactful AI strategy.
Our innovation has aimed to keep pace with rapidly evolving customer needs and most recently, we announced our opus a ship habits Ava.
Available with Apple Maestro AI Smart classification system baffling opus provide organizations, a comprehensive information lifecycle management solution offering them powerful insights impactful recommendations and effective automation.
With alpine Opus organizations can't manage their information and ensure compliance optimized cloud storage and streamline data management processes, all of which are essential to the AI focused ambition of our customers and prospects.
We're excited about our roadmap for AI power solutions, and you'll hear more from us on new products and enhancements to our existing offerings that will drive even more customer value.
Let's discuss a couple of customer wins and expansions in the third quarter that show how we are not only helping organizations established that solid data foundation, but also helping them extract more value from that data to reduce costs improve productivity and make more informed business decisions.
One of our most notable customer expansion in Q3 with a large U S. Federal agency a law.
Long time out when customer they faced several challenges in meeting their stringent compliance governance and security requirements for their 95000 users as they move to the cloud.
Without point confidence platform. The agency you can dress is complex record management needs, including narrow compliance and data protection.
Identify and secure sensitive data and implement the proper controls over its workspace provisioning and lifecycle management of their productivity environment, including Microsoft who subscribe empower platform.
This competitive win also unlock future opportunities as we're already in talks with them to accelerate their migration of our remaining self hosted assets to Microsoft through spot implement information lifecycle management with opus and transform analytics into workplace insights with high graph.
One of the world's largest financial service company has been a longtime customer of our control and modernization suite aimed.
Third quarter came to us for help reducing high capacity and consumption cost or their citizen developer.
They purchase I appoint empower and now have better visibility into their local no code application development and license usage of Microsoft power platform.
Allowing them to optimize their resources can save on cost for their 106000 users where are you in bans talks with this customer to purchase up with opus, whereby AI ready information lifecycle management across digital workplace investments.
The hybrid work model and the exponential growth in data, particularly data produced by generative AI has made clear that organizations need to property secure sensitive data across an increasingly distributed digital workplace.
In Q3, a United Kingdom based public sector agency needed a comprehensive solution to protect us increasing amount of data already Microsoft to spot.
After purchasing a point secure backup a service solution the customer can implement robust resilience for data generated by its 123000 users.
And this new customer, it's already considering extending their security to their Microsoft Azure investment in order to provide comprehensive protection across their entire digital workplace environment.
I'm extremely proud of the team for another strong quarter in closing new customer wins and existing customer expansions.
And just want to spend a moment discussing the channel, which as you know is a key pillar of our strategy to drive profitable growth.
Our investment in AI and proven ability to create a robust and secure data strategy will not only benefit our customers, but it will also provide significant value to our expanding partner network.
Integrating more AI capabilities into our technology, our partners will be equipped with smarter more automated tools to manage and protect their clients' data and collaboration environments.
Ultimately this will reduce complexity and optimize costs for our partners, enabling them to better focus on delivery strategic solutions tailored to enhance the customer experience.
We're entering the next phase of generative AI, where the focus is shifting from scaling models to building products that solve real business problems and transform the customer experience.
The key to doing this effectively is by having a robust data management strategy, which is the core business problem Apple have solved throughout his 22 year history.
They're integrating AI to fully harness its potential.
We'll continue to update you as we execute the product roadmap for AI power solutions that transform and you rich data to provide perfectly tailored experiences for our customers.
As a whole my remarks today may clear, we're well positioned to help companies adapt and compete in today's dynamic business and technology landscape as the value provided by the App when confidence platform is critical to the success of AI ambitions of companies around the world.
With that I'll turn it over to Jim to discuss our financial results in more detail.
Thank you T J and good afternoon, everyone. As we review our strong third quarter results today, Let me remind you that unless otherwise noted I'll be referring to non-GAAP metrics.
For the third quarter ended September 32023, total revenues were $72 $8 million up 16% year over year and once again above the high end of our guidance.
Within total revenue third quarter, SaaS revenue was $41 $9 million as our fastest growing revenue segment grew 40% year over year.
And in Q3, SaaS comprised 58% of total revenues compared to 48% a year ago.
Looking at the business geographically our solid performance was once again driven by the growth in our SaaS business in North America SaaS revenues grew 28% year over year and represented 57% of North America revenues, which in turn grew 8% year over year in EMEA status.
<unk> grew 51% year over year and represented 72% of EMEA revenues, which in turn grew 14% year over year.
And in APAC SaaS revenues grew 50% year over year and represented 43% of APAC revenues, which in turn grew 35% year over year.
Total layer or surpass the quarter billion dollar Mark this quarter as we ended Q3 at $256 million. This represents year over year growth of 23% and growth of 25% when adjusted for the impact of FX.
Net new <unk> in the third quarter was $14 $4 million representing year over year growth of 14% after adjusting for the $3 million of error that we added in the prior year period through the acquisition of <unk> and as we look at are are geographically we are pleased that.
Year over year growth for all three regions was generally in line with total reported are our growth as we saw another strong quarter of execution by our sales teams.
Continuing with there are and the metrics we assessed against several key growth strategies. We ended the third quarter with 518 customers with <unk> of over $100000. That's up 16% from the prior year period as of the end of Q3, 50% of our total error.
It came through the channel compared to 47% a year ago.
For Q3, specifically, 72% of our incremental IRR came through the channel compared to 61% for Q2.
As discussed at our Investor Day in March the channel contribution to our incremental air or may fluctuate from quarter to quarter, but we expect the channel contribution to total IRR to continue increasing each quarter in turn this should continue driving <unk> growth and operating efficiencies as we are.
<unk> seen through the first three quarters of this year.
Turning now to our customer retention metrics.
Adjusted for the impact of FX, our trailing 12 month gross retention rate for the third quarter was 87% in line with what we reported at the end of Q2.
And looking at our net retention rate, we saw another strong contribution from our existing customer base in Q3 highlighted by several of the expansion examples T. J just discussed.
This led to another improvement in <unk> versus the prior quarter as this metric was 108% in Q3 compared to 107% at the end of Q2 after adjusting for the impact of FX.
On a reported basis Q3, <unk> was 85% and in line with Q2, <unk>, while <unk> improved from 104% in Q2 to 107% in Q3 to remind you our medium term target for gross retention rate is 90% plus and for.
Net retention rate is 110% to 115%.
Turning back to the income statement gross profit for the quarter was $53 $7 million, representing a gross margin of 73, 7% compared to 74% in Q3 of 2022 and 71, 1% in Q2 of 2023.
We're pleased that our gross margin remained in line with last year and improved versus the prior quarter going forward, we would expect to see improvements in our overall gross margin as services, which is our lowest margin business continues to become a smaller portion of our revenue base.
Moving down the income statement. We are pleased that Q3 operating expenses were flat year over year totaling $44 $3 million or 61% of revenues.
This compares to $44 million or 70% of our revenues a year ago.
As a result, Q3 non-GAAP operating income was $9 $3 million or an operating margin of 12, 8% well above the high end of our guidance. This compares to operating income of $2 $4 million, a year ago or an operating margin of three 8%.
We continue to show leverage across the business, especially in the sales and marketing and general and administrative lines, which as we discussed at our Investor day, where the biggest areas of opportunity for us.
Overall, our sustained focus on profitable growth drove year over year margin expansion of approximately 900 basis points in the third quarter.
Turning next to the balance sheet and cash flow statement.
We ended the third quarter with $209 $3 million in cash and short term investments for the nine months ended September 32023 cash generated from operations was $13 $3 million, while free cash flow was $11 $8 million.
This compares to cash used of $6 $9 million and free cash flow of negative $10 $3 million for the nine months ended September 32022.
Taken together, our strong cash balance and our ongoing cash flow generation provides ample flexibility as we constantly evaluate our capital allocation priorities, which include investing for profitable growth M&A and share repurchases, where I'll turn next during the nine months ended September 30th.
We repurchased 6 million shares for a total cost of approximately $33 $6 million and through the close of trading yesterday, we've repurchased a total of $6 6 million shares for a total cost of approximately $37 $7 million in 2023.
I would now like to turn to our financial outlook, where for the full year. We are pleased to once again raise our expectations for total air our total revenue and operating income.
For the fourth quarter, we expect total revenues of $70 5 million to $72 $5 million or year over year growth of 12% at the midpoint. We expect non-GAAP operating income of $8 1 million to $9 $1 million, representing an operating margin of 12%.
Sent at the midpoint and year over year margin expansion of more than 1000 basis points for.
For the full year, we now expect total error of $261 million to $263 million or year over year growth of 22% at the midpoint. We now expect total revenues of $267 $7 million to $269 $7 million or year over year growth.
Of 16% at the midpoint.
Lastly, we now expect non-GAAP operating income of 20 million to $21 million. This represents an operating margin of seven 6% and year over year margin expansion of nearly 900 basis points.
This also represents nearly 240 basis points of improvement relative to our initial 2023 operating margin guidance in March as we continue to drive operating leverage across our business.
In summary, we are pleased with our Q3 results and we are equally excited for a strong close to 2023 as our commitment to profitable growth continues to drive shareholder value.
Thanks for joining us today and with that we'd be happy to take your questions operator.
We will now begin the question and answer session. As a reminder to ask a question you May Press Star then one on your telephone keypad, if you're using your speaker phone. Please pick up your handset before pressing the keys.
If you would like to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Today's first question comes from Fatima <unk> Bolani with Citi. Please proceed.
Thank you and thank you for taking my questions T. I wanted to start with you are with respect to okay.
And really delved into your philosophy around commercialization in other words I wanted to get an understanding of is this going to be a discrete incremental monetization opportunity for you or is it going to be used as a stir.
Strategic and competitive.
Maneuver to drive better retention and expansion and velocity in the base with cash on hand.
Tack that with you in terms of monetization strategy and then a follow up as well please.
Okay.
Thank you for human for that question, Yeah. So loss earnings were already discussed we had previewed.
Preview customers with government sees that's already deriving a productivity improvements with this product this last year.
The new generation of our cloud.
Archiving and records management product so its actually both its.
Both of our incremental.
Revenue a go getter for us as well as the expansion of emphasizing the platform play that we have around the whole end to end lifecycle management business data.
That's part of it it's a you know.
It also relates to the second part of your question and very importantly, this whole area of information management and it's a key in the today's AI Gen AI Rush, where all of the companies are actually building their proprietary models, we believe in a solid.
Data estate proper governance and management of that data to then actually generate a really good predictive models leveraging your proprietary data. So this is ashley both incremental as a new version of our existing products, but also very strategic in naming into this AI ready informed.
Management story for our platform.
Thank you for that and just wanted to shift gears into your performance by geographic theaters in the United States performance stands out to me and are growing at a fraction of the rate of your rest of world regions and it's actually.
Based on what I see has seen the most deceleration in the last several quarters. So kind of wanted to understand why the disconnect in the north American market versus your international execution.
Great. Thanks for the question.
Maybe maybe a couple of thoughts one is we're seeing as you mentioned its 8% growth in terms of revenue growth but.
But if we think about that is it's really a revenue mix issue, that's driving that and what we're seeing is in North America, we're seeing significant growth on the SaaS side. So we saw a 28% growth year over year on SaaS and then our term license revenue was actually down 10%. So it's a little bit of a mix. So the.
Most important thing that we're looking at is really are a or our growth in North America and what we see there is growth. That's in line with the overall company growth that we reported for the quarter of 23%. So we're right in line with that and so for US we don't look at it as necessarily deterioration.
We're just looking at really is a mix shift and in the long run I think that helps us.
I appreciate that color. Thank you.
Sure.
The next question is from Gabriela Borges with Goldman Sachs. Please proceed.
Hi, This is Max on for Gabriela, Thanks for taking our question.
Relatively it too when you entered this year how much incremental demand do you think has resulted from the more broader adoption of Gen <unk>.
Versus demand related accounted for earlier this year and how has that maybe offset some of the budget scrutiny.
This year.
I'll start first and then Jim Mccann shattering Jenny is for us.
There's a lot of excitement about it but we're still in early stages, so relative to going into this year.
We are executing as we have forecasted it having said that the macro environment is still relatively volatile so where we're at.
Constructive I'm looking at continue execution of G&A I I will play a much bigger part going into specialty now.
Microsoft Fifty-five copilot as G E.
On November 14th there would be actually a productivity data released by Microsoft.
During the the industry, where we also work.
Previous mode with partners and customers to to see some positive results. So I think to answer. Your question is yeah go into the air and this year's execution is not so much Jen AI, but generally obviously is playing a part into the future quarters.
Got it that's helpful.
And you raised your operating income guidance again for the year, what what's driving that operating leverage is that primarily associated with your shift to the channel or are there other factors that go into this.
Yes, Thanks, Max I think it's really across the board right that is clearly a factor I think we are getting leverage really across our sales and marketing teams as well as our general and admin expenses you can see that really across the board. So I think the channel is playing a component we're able to see some leverage there.
Also think we're able to take advantage of really leveraging some of our G&A expenses as well. So I think we're looking.
Looking to continue that really into Q4 and beyond the focus this year has really been unprofitable growth and I think that comes from the channel is helping that in terms of leverage but we're also examining all parts of the business and ensuring that we're as efficient and effective as possible.
Got it thank you.
The next question comes from Kirk <unk> with Evercore ISI. Please proceed.
Hi, This is Sean on for Kirk Congratulations on the strong quarter and thanks for taking the question.
Just wanted to ask about the broader demand environment, whether anything has changed from the past quarter and how that compares across the customer segments, you sell to whether enterprise mid market and SMB. So any commentary on the general macro spending environment and customer budgets would be very useful. Thank you.
Okay.
Yeah. Thanks for the question.
So we're seeing it's still a very challenging macro environment and pretty uncertain, we're still seeing the same scrutiny around budgets.
So we see that continuing we don't think it's gotten worse when we think about the demand we actually I think last quarter, we referred to it as stabilization and I think I would continue to use that terminology. When we look at our daily deal cycles, and how long, it's taking to get deals through the process that doesn't seem to have changed much this year.
There is longer than the past, but it hasn't been getting worse as we've gone through the year. So I think that's kind of stabilized and when we look at the three segments.
In our SMB segment is our fastest growing segment that continues to be but all three segments have been healthy in terms of growth. So again, we're not really seeing any one particular segment overly affected. So again, we're really pleased with the quarter's performance and it's really across all three segments.
Alright, thank you.
Okay.
Okay.
Our next question comes from knee Hall at <unk> with Northland Capital markets. Please proceed.
Great. Thank you great quarter guys.
Any specific skus driving the slight improvement to our net revenue retention rate.
Yeah, well I think I think it's a couple of things right in terms of we definitely have seen T. J pointed out a couple of them.
You know customer acceleration, where it is.
Additions in the quarter I think those were were very helpful. I think were seeing customers really look to reduce costs that we've seen some consolidation we've seen some of our products that are helping them do that.
With existing customers. So I think that's really been the key call outs I think it's still we're still in this macro uncertain environment right. So we're pleased with the quarter's performance, but again, we're being very cautiously optimistic when we think about the rest of the year.
And if I may.
For calendar, 'twenty, three ending or guiding to.
22% growth as is what's the FX adjusted expectations current rates.
Well again for US it's interesting right. We've got a very global business. So we have seen this year. If you look at the FX impacts around the globe, we've seen EMEA.
EMEA kind of come back in terms of the euro against the dollar that has gotten stronger, but we've seen the Japanese yen continued to get weak against the dollar and for us those kind of offset each other slightly so we're going to see slight improvement on the air arm in terms of this 22, probably gets us another two.
Since the in total for the year I mean, you can see that as we were in Q3, 23% and 25 I think it's probably similar for the year somewhere in that 1% to 2% impact of FX.
Okay, great. Thank you.
The next question is from Derrick Wood with TD Cowen. Please proceed.
Oh, great. Thanks for taking my question P J.
We're hearing more and more of that cloud optimization efforts are something here to stay.
With workload governance and cost management and a core part of your value proposition. Just curious is the level of the buyer that you are engaging changing at all and how do you feel about positioning for larger budget capture and I guess I'd ask the same thing for AI.
Companies, perhaps view you guys as critical in helping train models against private data.
New buyers to engage with surface.
They are great question. The first part of that is.
Co ops cost control.
Really plays into our wheelhouse our platform advantage.
Especially with a control suite around operation management entitlement management.
And of course, this whole lifecycle management, including low code No code platforms, that's power apps.
It is in high demand, so that part is really well and with AI.
I have so much conversation now with the <unk> and Cio's around rolling out co pilot to make sure that there is co pilot readiness.
So that means making sure that folks don't have over privileged access two suggestions.
From from Copilot, you in term of drafting answers and.
Leveraging corporate data. So that's a very very active area in topic, we actually see tremendous opportunity to expand our value added.
Our strategy strategic offer there. So that's why at my earlier comment we think that that will drive a lot of the business growth in the coming quarters and years. So yes, both of those platform play as well as the the necessity around proper information management to drive a better outcome with AI.
It's going to be the major theme going forward and by the way, we're not a stranger to AI, we've been a longtime consumer of cognitive services on Azure, which is basically the front end to open AI for a number of years now.
We have solutions that does the sum of detection of ransomware attacks for example, and auto classification taxonomy.
Generation as well as data analytics services using previous paradigms in AI of course now our infusion of Gen. AI architecture. So yes. So these are things are a major themes going that's going to carry forward and driving momentum for the business.
Got it thanks, there and a follow up for Jim.
Oh on the IRR guidance.
If I look at what it implies for net new IRR, it's down quarter over quarter in Q4.
I think the same.
Same thing happened last year, but can you just remind us why this is the case in Q4.
Is it has it had something to do with.
Got it spiking government.
In Q3, or what are the dynamics that have net new air are going down sequentially.
Yeah. Good question Kurt So so yes part of that is what you just said that's definitely part of it I think the second half of that really deals more with the macro environment. We see when we came into Q3, we kind of set the expectation that we'd be somewhere between 24 and $25 million of ink.
<unk> <unk> in the second half of the year.
So we still feel really good about that.
And obviously, we're pleased with how we performed in Q3 I think some of it is a little bit of the government sector to the public sector.
But again, we're just you know thinking about the macro environment the uncertainties are.
And again feel still feel very comfortable with that original set of getting somewhere between 24 and 25, we have a small raised for air or for.
For Q4, and we feel comfortable about that and in light of the you know the macro environment right now.
Thank you.
Thank you Sir.
The next question is from Jason Ader with William Blair. Please proceed.
Yeah. Thank you. Good afternoon, guys. Just wanted to ask you on first off on the revenue growth guidance for Q4.
12% that would be quite a bit lower than where it wasn't the first three quarters of the year and certainly lower than where it's been historically is there something unique going on in Q4 or is it just macro maybe just help US square you know why the revenue growth would decelerate as much as that.
Sure. Thanks, Jason So so maybe it's two factors right. One is what you called out in terms of the macro environment again, just trying to plan for uncertainties.
And then the second piece might be that in Q3, even though our term license revenue was down 10% year over year.
It is higher than what our expectation was coming into really the second half of the year and so in essence right that that term license revenue is going to pull a little revenue out of future periods and have land in Q3, which helped a little bit with the beat we saw in Q3.
But it also then negatively impacts Q4, so again I think it's more the macro but we're trying to take those factors into you know into play understood. Okay, Great and then on.
On the gross revenue retention.
You're in the mid eighties right now you are primarily in enterprise.
Focused company, that's definitely on the low end of companies that sell into the enterprise.
Can you help us understand why your gross revenue retention isn't higher I know you have aspirations to get it to 90% plus.
What needs to happen for you to get to that 90% plus and then I'll.
Also when somebody does churn off like what's the main reason somebody's turning off.
Yeah. Good question, Jason and you're right. Our focus has been that our long term goal here is to be 90, plus in terms of our gross retention rate. That's that's our stated focus we have.
Got multiple initiatives working on that from everything from customer engagement.
All kinds of different retention scenarios around that.
<unk> some of the things that we're talking about here with AI and really looking at behavior of customers all the way through their lifecycle with us as customers. So I do think we have a lot of things that are that are in place that we're working on that are going to reap rewards and improvement for that I do think this year in particular.
We've talked about this this uncertainty and I think we are seeing it show up in terms of some of our activities.
And keep in mind that most of our licensing is seat based.
Our employee driven and so we are seeing that impact a little bit this year as well and so I think when you factor in the macro and our kind of licensing base. Today I think we're pleased right now that we're in that 87% range right now in terms of gross retention, but again, we are initiating.
Adding a bunch of things that we anticipate over time, we will definitely improve that gross retention.
Alright. Thank you Jason I would just say that yes go ahead T. J, yeah, Jason I'll, just say that you know in.
In 2020, our gross retention was 83% so we're sitting on 87 now.
It's a market improvement also enterprises about half of our business now with the mid market being 30% in SMB be 20%, so given that mix, we're actually decently.
Happy with the current mixture of course, we'll continue to work to improve that but we do have quite a sizable non enterprise business, though.
Would you say that gross revenue retention for the 50% that's enterprise's north of 90 that'd be fair.
It is definitely higher as you would expect the tears or the way you would expect our enterprise group has the highest retention mid market is slightly lower and then SMB is the lowest so so yes, you are directionally absolutely correct.
Alright, Thanks, guys. Good luck.
Thanks, Jason.
Yeah.
This concludes our question and answer session.
I'd now like to turn the conference back over to Mr. T. J Jones for any closing remarks.
Thank you first I want to thank the entire alpine team for delivering another strong quarter, we're laser focused on advancing the digital workplace, capturing growing markets Empire prioritizing profitable growth after.
After speaking with many of our customers and partners at our ship happens conference last month.
More energized than ever about the opportunities ahead of us to help companies harness the full potential AI in their business processes.
You you for joining us today.
Okay.
The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.
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