Q3 2023 Copperleaf Technologies Inc Earnings Call
Speaker 1: percent year-on-year increase in annually recurring revenue, drove a 30 percent year-on-year increase in subscription revenue and ended the quarter with a record $114.2 million backlog.
It's an annually recurring revenue drove a 30% year on year increase in subscription revenue and ended the quarter with a record $114 $2 million backlog.
Speaker 1: I believe these results underscore the effectiveness of our industry leading decision analytics software, the strength of our refreshed operating model and the improved execution of our team in the context of our ongoing transition to SaaS.
I believe these results underscore the effectiveness of our industry, leading decision analytics software and the strength of our refreshed operating model and the improved execution of our team in the context of our ongoing transition to SaaS.
Speaker 1: We also continue to make progress with the addition of new clients, adding one of the largest gas distribution companies in the United States as a client in Q3, as well as one of Brazil's largest integrated power utility.
We also continued to make progress with the addition of new clients, adding one of the largest gas distribution companies in the United States has declined in Q3 as well as one of Brazil's largest integrated power utilities.
Speaker 1: The establishment of this new beachhead in Brazil in particular is another point of validation of our ongoing investment in expanding Copa Leagues reach into selected new geographies.
Under this new beachhead in Brazil in particular is another point of validation of our ongoing investment in expanding <unk> reach into selected new geographies.
Speaker 1: Overall, I'm very proud of the progress we've made as a team in the first nine months of the year, generating good growth despite continuing uncertain macroeconomic conditions in most of our markets.
Overall I'm very proud of the progress we've made at the team and the first nine months of the year generating good growth. Despite continuing uncertain macroeconomic conditions in most of our markets and on this topic. We do continue to see temporary headwinds like enhance client sign up requirements limited client resources in RF.
Speaker 1: And on this topic, we do continue to see temporary headwinds like enhanced client sign-off requirements, limited client resources and RFP delays, which we expect to continue through the end of the year. However, we remain focused on continuing to improve our execution while charting a clear path back to profitability.
Delays, which we expect to continue through the end of the year. However.
However, we remain focused on continuing to improve our execution, while charting a clear path back to profitability.
We emerged from Q3 with a renewed conviction that we have the industry leading solution there.
Speaker 1: We emerged from Q3 with a renewed conviction that we have the industry leading solution, the right operating model, the right leadership and the right strategy to drive long-term growth.
In operating model, the right leadership and the right strategy to drive long term growth.
As part of that growth story, we continue to evolve our sales and marketing approach and in July we hosted after asset investment planning and management Forum in Paris and in August we hosted a similar ATM symposium in Malaysia, where we bring the asset investment planning community together to network share and land.
Speaker 1: As part of that growth story, we continue to evolve our sales and marketing approach. And in July , we hosted our first asset investment planning and management forum in Paris. And in August , we hosted a similar AIPM symposium in Malaysia, where we bring the asset investment planning community together to network, share, and learn.
Yeah.
Speaker 1: These events are extremely well attended and it's a good indication that we're making progress in establishing asset investment planning software as an essential component of our client digitized environment.
Events are extremely well attended and it's a good indication that we're making progress in establishing asset investment planning software as an essential component of our client digitized environment.
Speaker 1: clients and prospective clients come together to discuss the importance of multi-criteria decision analysis that considers both financial and non-financial measures, including normally difficult to quantify sources of value such as environmental impact, customer satisfaction, social justice investing and reputational benefits.
Clients and prospective clients come together to discuss the importance of multi criteria decision analysis that considers both financial and nonfinancial measures, including normally difficult to quantify sources of value such as environmental impact customer satisfaction, social justice investing in <unk>.
<unk> mutational benefits.
Speaker 1: These events serve as important platform for us to emphasize the significance of value-based decision-making as a central part of an organization's overall strategic tool kit and further establish co-operately for the thought-leading organization and trusted advisor in this rapidly emerging space.
These events serve as an important platform for us to emphasize the significance of value based decision, making is a central part of an organization overall strategic toolkit and further establish couple of late because of thought leading organization and trusted advisor in this rapidly emerging space.
Speaker 1: One of the highlights of the symposium in Kuala Lumpur, particularly, was a keynote from an executive at Tanaga National Burhad, a Malaysian multinational integrated electricity company.
One of the highlights at the symposium in Kuala Lumpur, particularly was a key note from an executive at Tonight to now get national but hard a Malaysian multinational integrated electricity company.
Speaker 1: The presenter, an executive who has worked on TNB's copper leaf implementation since the beginning, guided the audience through the company's transformative journey from risk-based decision-making to value-based decision-making.
The presenter and executive who has worked on Pn base, coupled with implementation beginning guided the audience through the company's transformative journey from risk based decision, making to value based decision making.
Speaker 1: CNB Grid has now integrated the co-pollif decision analytic solution into its digital landscape, resulting in a systematic and consistent approach to investment decision-making, greater transparency to the Malaysian energy regulator, and a heightened focus on realizing value for every dollar they spend on their assets. All while pro-
Dnb grid has now integrated the Copper-leaf decision analytics solution into a digital landscape.
<unk> in a systematic and consistent approach to investment decision, making greater transparency to the Malaysian energy regulator and a heightened focus on realizing value for every dollar they spend on their assets.
All while proactively managing risk.
Speaker 1: These symposiums provide an incredible form for us to engage with some of the world's leading organizations while they share information and learn from each other's programs.
These symposiums provide an incredible form for us to engage with some of the worlds leading organization, while they share information and learn from each other's progress.
Speaker 1: As Coppolis, we always believe that we're the clear leaders in the decision analytics talkwers sector. During the third quarter however, we received strong third party validation of that position from Vedantix, a research and advisory firm that act as an essential fillet leader and advisor on innovation to many of our clients and our perspectives.
A couple if we always believed that we're the clear leaders in the decision analytics software sector. During the third quarter. However, we received strong third party validation of that position from fanatics a research.
Search and advisory firm that act as an essential thought leader and advisor on innovation to many of our clients and prospective clients.
Speaker 1: Fidandex published its inaugural Green Quadrant report on asset investment planning, with Coppola positioned as the clear leader in the segment.
<unk> published its inaugural Green Quadrant report on asset investment planning with Copel is positioned as the clear leader in this segment.
Speaker 1: Their report echoed our view that when successfully deployed, firms achieve improved decision making, reduced risk.
Their report echoed our view that when successfully deployed.
<unk> achieve improved decision making.
<unk> risk.
Speaker 1: stronger compliance with regulatory requirements, and the ability to clearly evaluate investments in such initiatives as the mitigation of climate.
<unk> compliance with regulatory requirements and the ability to clearly evaluate investments in such initiatives as the mitigation of climate risk all leading to material additional return on investment.
Speaker 1: All leading to material additional return on in best.
Speaker 1: Vedantics concluded that with Excel no longer viable with due to the ever increasing complexity of the problem and existing asset management solutions failing to cover the space.
<unk> concluded with excel no longer viable with due to the ever increasing complexity of the problem and existing asset management solutions failing to cover the space.
Speaker 1: AIP software is emerged as its own category, providing capabilities to create investment plans that take into consideration financial and non-financial objectives and drive superior ROI.
AIP software has emerged as its own category, providing capabilities to create investment plans to take into account into consideration financial and nonfinancial objectives and drive superior ROI.
Speaker 1: We have a lot of respect for the data, so the trust of the technology advisor to our clients, and we're obviously delighted to see them recognize properly, placing us in the leading top right position in the green quadrant.
We have a lot of respect for IDEXX as a trusted technology advisor to our clients and we're obviously delighted to see them recognize coppola, placing us in the leading talk right position in the Green quadrant.
Speaker 1: In addition to this recognition by the Dandex, Q3 saw further progress in the development of our partner ecosystem, which is a key plan for our strategy.
In addition to this recognition by Pedantic Q3 saw further progress in the development of our partner ecosystem, which is a key plank of that strategy.
Speaker 1: Further to the announcement in Q1 and Q2 regarding the developing global relationship with SAP under the endorsed apps program.
Further to the announcements in Q1 and Q2 regarding that developing global relationship with SAP.
Under the endorsed App's program Q.
Speaker 1: Q3 saw the official commencement of cooperative go-to-market activities, resulting in material incremental pipeline for 2024 and beyond across all reach.
Q3 saw the official commencement of cooperative go to market activities.
Resulting in material incremental pipeline for 2024 and beyond across all regions.
Speaker 1: 2-3 also saw the deepening of cobbly's global relationship with Accenture to a more programmatic level.
Q3 also saw the deepening of Copel is global relationship with Accenture to a more programmatic level.
Speaker 1: This is a direct reflection of the scale of the opportunity that Accenture sees with Coppolaise, and is the next step towards a coordinated approach to cooperative go-to-market activity in the Intelligent Asset Management space.
This is a direct reflection of the scale of the opportunity that accenture fees with call. It and just the next step towards a coordinated approach to cooperative go to market activity in the intelligent asset management space.
Speaker 1: Our partners play a crucial role in our global scaling strategy, and we're pleased to see concrete progress resulting from the focus and resources we've recently dedicated to building our eCo.
Our partners play a crucial role in our global scaling strategy and we're pleased to see concrete progress, resulting from our focus and resources. We've recently dedicated to building our ecosystem.
Speaker 1: Copperleaf continues to innovate and extend the competitive advantage of our solutions.
Couple if continues to innovate.
And extend the competitive advantage is the best solution in.
Speaker 1: In Q3, we were granted a new US patent for an advanced software optimizer, which enhances our comprehensive asset management portfolio, particularly, or large numbers of assets across all stages of the asset livestock.
In Q3, we were granted a new U S patent.
For an advanced software optimized, which enhances our comprehensive asset management portfolio, particularly for large numbers of assets across all stages of the asset lifecycle.
Speaker 1: This patent highlights Coppallis dedication to R&D, developing pioneering solutions that facilitate better investment decisions and higher ROI for our client.
This patient highlights couple its dedication to R&D.
<unk> pioneering solutions that facilitate better investment decisions and higher ROI for our clients.
Reminding everyone on the call that we maintain a cadence of four quarterly software releases per year.
Speaker 1: Reminding everyone on the call that we maintain a cadence of four quarterly software releases per year, during Q3, Copperleaf released version 23.3 of its product suite, which included numerous new capabilities, including a new modeling
During Q3 couple if released version $23 three of its product suite, which included numerous new capabilities include.
Including a new modeling.
Speaker 1: for modules for complex asset relationships and asset interventions in the Coppolis value model library, visualization of predictive analytics, asset strategies in our interactive GIS experience options.
Sure.
Module for complex asset relationships and asset interventions in the Coca leaf value model library visualization of predictive analytics asset strategies in our interactive Gis experience auction.
Speaker 1: and significant enhancements to our popular dashboard library, which helps our clients to clearly communicate their value-based decision-making outcomes more effectively to their stakeholders.
And significant enhancements to our popular dashboard library, which helps our clients to clearly communicate that value based decision, making outcomes more effectively to their stakeholders.
Speaker 1: For the remainder of 2023, we will remain focused on executing our go-to-market strategy, while continuing to prudently manage company expenses, as we navigate uncertain economic conditions.
For the remainder of 2023, we will remain focused on executing our go to market strategy.
While continuing to prudently manage company expenses as we navigate uncertain economic conditions.
Speaker 1: We anticipate our growth in ARR and pipeline for the remainder of the year will be driven by our reputation for driving value for our clients, ongoing refinement of our go-to-market model, the maturation of our sales force, and of course our increasing partner track.
We anticipate our growth in <unk> and pipeline for the remainder of the year will be driven by a reputation for driving value for our clients.
Ongoing refinement, if I go to market model, the maturation of our sales force and of course, our increasing partner traction.
In summary, I'm very pleased with our progress in the way that our new operating model is starting to perform and I believe that we're on track to meet our strategic goals.
Speaker 1: In summary, I'm very pleased with that progress in the way that our new operating model is starting to perform. And I believe that we're on track to meet our strategic goals.
Speaker 1: We continue to focus on prudently managing cash and innovating across our whole business with the aim of driving execution in the near-to-medium term and at the same time laying down a sustainable global foundation for future profitable scaling and growth.
We continue to focus on prudently managing cash and innovating across our whole business with the aim of driving execution in the near to medium term and at the same time laying down a sustainable global foundation for future profitable scaling and growth.
Speaker 1: I'll now turn the call over to Chris to review our financial results in some more detail. Chris.
I'll now turn the call over to Chris to review, our financial results in some more detail Chris.
Thanks, Paul.
Speaker 2: Good afternoon, everyone. We're pleased to report that our third quarter 2023 results continue to deliver growth across our key financial metrics.
Good afternoon, everyone. We're pleased to report that our third quarter 2023 results continued to deliver growth across our key financial metrics.
Speaker 2: Revenue for the quarter ended September 30th, 2023 was 19.9 million, an increase of 10% compared to 18.1 million in the comparative period. Driven primarily by an increase in subscription and perpetual revenue, and partially offset by a decrease in professional services revenue.
Revenue for the quarter ended September 32023 was $19 9 million, an increase of 10% compared to $18 1 million in the comparative period, driven primarily by an increase in subscription and perpetual revenue and partially offset by a decrease in professional services revenue.
Subscription revenue for the third quarter was $13 million, an increase of 30% from the prior year, representing 65% of Q3 total revenue as compared to 55% of total revenue in Q3, 2022, and highlighting our continued transition to SaaS.
Speaker 2: Subscription revenue for the third quarter was 13 million, an increase of 30% from the prior year, representing 65% of Q3 total revenue is compared to 55% of total revenue in Q3 2022, and highlighting our continued transition to staff.
Speaker 2: In addition, this reflects the benefit of timing, as we were able to recognize a full quarter of revenue from a few SaaS deals that closed late in Q2 and early in Q3. By contrast, we expect to see our deal timing more traditionally back-end loaded in the fourth quarter.
In addition, this reflects the benefit of timing as we were able to recognize a full quarter of revenue from a few SaaS deals that closed late in Q2 and early in Q3 by contrast, we expect to see our deal timing more traditionally backend loaded in the fourth quarter.
Speaker 2: Professional services revenue for the third quarter was 6.1 million compared to 7.6 million in the prior year and this segment represented 31% of our Q3 2023 revenue. And finally, perpetual revenue for the third quarter was 0.8 million. A 100% increase compared to 0.4 million in the prior year and this segment represented 4% of our Q3 2023 revenue.
First of all services revenue for the third quarter was $6 1 million compared to $7 6 million in the prior year and this segment represented 31% of our Q3 2023 revenue.
And finally perpetual revenue for the third quarter was zero point $8 million and 100% increase compared to zero point $4 million in the prior year and this segment represented 4% of our Q3 2023 revenue.
Speaker 2: Our annual recurring revenue at September 30th, 2023 was 53.3 million at 26% year-over-year increase compared to 42.3 million at September 30th, 2022.
Our annual recurring revenue at September 30 of 2023 was $53 3 million or 26% year over year increase compared to $42 3 million at September 32022.
Speaker 2: As of September 30th, 2023, our net revenue retention rate was 111%, reflecting expansion within our client base on our strong renewal history. Revenue backlog was a record 114.2M at September 30th, 2023, a 23% increase from 93.1M as at September 30th, 2022.
As of September 32023, our net revenue retention rate was 111% reflecting expansion within our client base on our strong renewal history.
Revenue backlog was a record $114 2 million at September 32023, and 23% increase from $93 1 million as at September 32022.
Speaker 2: Gross profit was $14.5 million, representing a gross margin of 73% for the quarter, a 9% increase from $13.3 million, and a gross margin of 73% in Q3 2022.
Gross profit was $14 5 million, representing a gross margin of 73% for the quarter, a 9% increase from $13 3 million and a gross margin of 73% in Q3 2022.
Speaker 2: As is typical in Q3, we saw increased vacation through the summer months, fewer conferences and less travel, which resulted in a temporary decline in quarterly expenses, but we expect this to normalize in the fourth quarter back to Q2 level.
As is typical in Q3, we saw increased vacations through the summer months fewer conferences and less travel which resulted in a temporary decline in quarterly expenses, but we expect this to normalize in the fourth quarter back to Q2 levels.
Speaker 2: We had an adjusted EBITDA loss of $5.9 million for the quarter compared to an adjusted EBITDA loss of $8.1 million in the prior year. Net loss for the quarter ended September 30, 2023 was $5.2 million or a loss of $0.07 per share compared to a net loss of $7.5 million or a loss of $0.11 per share in the prior year.
We had an adjusted EBITDA loss of $5 9 million for the quarter compared to an adjusted EBITDA loss of $8 1 million in the prior year net loss for the quarter ended September 32023 was $5 2 million or a loss of seven cents per share compared to a loss of $7 5 million or a loss of <unk> 11 per share in the prior year.
We finished the quarter with a strong balance sheet was $46 3 million in cash and equivalents of $82 2 million in short term and long term investments, placing us in a strong financial position to build on our advantage when further penetrate the investment planning in decision analytics market.
Speaker 2: We finished the quarter with a strong balance sheet with $46.3 million in cash and equivalents and $82.2 million in short-term and long-term investments, placing us in a strong financial position to build on our advantage and further penetrate the investment planning and decision analytics market. With our strong unit economics, we remain focused on making thoughtful, long-term investments that will drive accelerated growth through 2023 and beyond.
With our strong unit economics, we remain focused on making thoughtful long term investments that will drive accelerated growth through 2023 and beyond.
Speaker 2: As we continue to expand our reach, we're confident that our focus on operational excellence will drive best in class margins, expand our leadership position in the growing decision analytics market, and accelerate our path to profitability.
As we continue to expand our reach we are confident that our focus on operational excellence will drive best in class margins expand our leadership position in the growing decision analytics market and accelerate our path to profitability.
Speaker 2: That concludes our prepared remarks. I'll now hand the call back over to the operator and open it up for questions.
That concludes our prepared remarks, and I'll now hand, the call back over to the operator and open it up for questions.
Thank you.
Speaker 3: Thank you. Ladies and gentlemen, we will now begin the question and answer session.
Thank you ladies and gentlemen, we will now begin the question and answer session.
Speaker 3: If you have a question, please press star 1 on your touchtone phone.
Do you have a question. Please press star one on your Touchtone phone.
Speaker 3: You will hear a three-tone prompt acknowledging your request and your questions will be polled in the order they are received.
You will hear a three ton prompt acknowledging your request and your questions will be posed in the order they are received.
Speaker 3: If you would like to withdraw from the question queue, please press start.
I would like to withdraw from the question queue. Please press star two.
If you are using a speaker phone please lift the handset before pressing any one.
Speaker 3: If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question.
One moment. Please for your first question.
Yeah.
Speaker 3: Your first question comes from Doug Taylor of Canaccord Ingenuity. Your line is already open.
Your first question comes from Doug Taylor of Canaccord Genuity. Your line is already open.
Yes. Thank you good afternoon.
I would hate for my first question on this call to be on something as mundane as operating costs, but it wasn't area a significant surprise in this quarter with opex down year over year.
Speaker 4: I'd hate for my first question on this call to be on something as mundane as operating costs, but it was an area of significant surprise in this quarter with down year over year. So, I mean, I guess my question is.
So I mean I guess my question is.
Speaker 4: Despite everything you said about vacation and normalization in Q4, having expenses down year over year, does that speak to any change in your strategy towards spending levels in the current environment?
Despite everything you said about vacation and normalization in Q4, having expenses down year over year does that speak to any change in your strategy towards spending levels in the current environment.
I'll take that one.
Speaker 2: I'll take that one. Hi, Doug.
Speaker 2: No, I don't think it changes our view. I think through 2023, we've been actively managing our costs and our headcount down.
No I don't think it changes our view I think through 2023, we've been actively managing our costs in our head count down. So I think as we've said in prior calls and maybe you haven't been part of those out but.
Speaker 2: So I think, as we've said in prior calls, and maybe you haven't been part of those, Doug, but we feel that we've got the right footprint in place basically now to effectively execute on our strategy. So we feel that the minimum global footprint, as we like to call it, is in place and is operating well. Again, as I said, in my...
We feel that we've got the.
The right footprint in place basically now to effectively execute on our strategy. So we feel that.
The minimum global footprint, because we like to call. It is in place and is operating well.
Again as I said in my.
Speaker 2: you know, my comments, Q3 was a little bit anomalous in that it was down because of fewer conferences, less travel, but we expect that to tick back up in Q4, you know, more akin to what we saw in Q2 as a run rate.
My comments Q3 was a little bit anomalous in that it was down because of fewer conferences less travel, but we would expect that to tick back up in Q4 and no.
More more akin to what we saw in Q2 as a run rate.
Okay. Thank you for clarifying that.
Speaker 4: Thank you for clarifying that. Historically, Q4 has been a seasonally strong period for ARR build. So my question is, do you think that the macroeconomic headwinds and the slowing buyer behavior that you've referenced as extending into the new year would prevent this from being the case this year?
Storage Q4 has been a seasonally strong period for <unk>. So my question is do you think that the macroeconomic headwinds and the slower slowing buyer behavior that you've referenced is extending into the new year would prevent this from being the case this year.
Hi, it's Paul.
Speaker 1: Hi, it's Paul. No, look, it's puts and takes. We've got terrific following wins in the space that we're in and as part of the remarks that I just made, I think highlighting some of the following wins that we've got.
No look it's it's puts and takes.
We've got terrific following wins in the in the space that we're in.
Part of the remarks that I just made I think.
Highlighting some of the following wins that we've got.
Speaker 1: We don't see any, I mean, we're not economists, but we don't see any worsening of the environment and we get better and better at executing. So, you know, we're always back end loaded into Q4 as are many software companies of a similar process.
We don't see any.
We're not economists, but we don't see any worsening in the environment and we get better and better at executing so we're always back end loaded into Q4 as many software companies.
Uh huh.
Have a similar profile.
Speaker 1: And we don't see anything that's necessarily going to impede us from putting another good Q4 on the table.
We don't we don't see anything that's necessarily going to government paid us from putting another good Q4 on the table.
Speaker 4: All right, and one more question for you, Ben Paul. I mean, you've confirmed here you're up and running within the SAP ecosystem with the endorsed app and your go-to-market, cooperative go-to-market activities. You said you're already seeing, you know, pipeline build on the back of that. Can you perhaps expand upon that to talk about the geographies and potentially the markets where, you know, you're seeing that impact most, even though it's early days?
Alright, and one more question for you Ben Paul I mean, you've confirmed here youre up and running within the SAP ecosystem with the.
Endorsed apps and your go to market.
Cooperative go to market activities.
You said youre already seeing pipeline build on the back of that can you, perhaps expand upon that to talk about the geographies and potentially the markets, where you're seeing that impact most even though it's early days.
Speaker 1: Yeah it is early days but and you know it's worth reminding ourselves that our our traditional deal gestation periods are pretty long you know in the in the order of a year and a half. So with the the early indications that we've seen are very positive. There is incremental pipeline over and above what we what we would normally seen ourselves build as a standalone so it's incremental benefit.
Yes. It is early days and it's worth reminding ourselves that are.
Traditional deal <unk>.
This station periods are pretty long in the order of a year and a half.
With the early indications that we've seen a very positive.
There is incremental pipeline over and above what we what we would normally seen.
<unk> builds.
As a as a stand alone so it incremental benefit.
Speaker 1: It's pretty global in nature, we've been engaged globally, the SAP teams and the Copperleaf teams, as mismatched as they may be in size, are globally engaged across EMEA, APJ, Americas and also LATAM.
It's pretty global in nature.
Been engaged globally, the eighteens and the Copper-leaf teams.
Mismatched as they may be in size.
Globally engaged across EMEA, AP, J, Americas, and and also Latam.
Speaker 1: SAP operates a global organization and a global organization structure.
S&P operates a global organization.
Our global organization structure.
Speaker 1: They have specialists associated with product and industry and we're part of their landscape of what they're putting forward in the intelligent asset management space. And we're finding ourselves increasingly positioned in those deals and cooperating across the region. So I couldn't pull out any one specific geography or even any one specific industry.
They have specialist associated with product and industry.
And we're part of the landscape of the.
What they are putting forward in the in the intelligent asset management space and we're finding ourselves increasingly positioned in those deals and cooperating across the across the region. So I couldnt pull out any one specific geography or even any one specific industry.
Speaker 1: Obviously, we're very strong in utilities, but one of the good things about SAP is their install base is massive, it runs across most industries, and they have referenceability and traction in industries that would take us a long time to penetrate, and we are starting to see some movement in those places. So, good news in the early stages, and we'll continue to drive it.
Obviously, we're very strong in utilities, but one of the one of the good things about it.
Base is massive that runs across most industry and they have referenced ability and traction in the industries that would take us a long time to penetrate and we are starting to see some movement in those places.
Good news in the in the early stages, and we will continue to drive it.
Thanks for that color I'll pass the line.
Thank you.
Your next question comes from Faith Bruner of William Blair. Your line is already open.
Speaker 3: Your next question comes from Faith Bruner of William Blair. Your line is already open.
Speaker 5: Hey, guys. Congrats on the quarter. A lot of good stuff here. Obviously, you guys have a lot of opportunity ahead of you. Going forward, can you just provide some color on how you guys are going to continue balancing, investing to capitalize on all the momentum, while also maybe accelerating or just moving towards that path of profitability? Like you called out, those earlier investments are going to begin to scale. But what else can we expect in the coming quarters from maybe an operating margin perspective?
Hey, guys congrats on the quarter a lot of good stuff here.
Obviously, you guys have a lot of opportunity ahead of you going forward can you just provide some color.
Can it continue balancing investing to capitalize on all the momentum while also maybe accelerating or just moving towards that path the property profitability.
I'm like you called out those earlier investments are going to begin to scale, but what else can we expect in the coming quarter, It's Brian maybe an operating margin perspective.
Speaker 1: Chris can chime in in a moment on operating margin, you know, we've obviously got our long term plans, but, you know, it's worth looking back a little bit in history. I mean, we, we, you know, we saw.
Chris can chime in in a moment on operating margin, we could obviously go to a long term plans, but.
It's worth looking back a little bit in history sites I mean, we we saw.
Speaker 1: You know, an increasing adoption of asset investment planning software and methodology sort of leading into the IPO in 2021, you know, we, we know that we're on the somewhere on the third part of that asset and total adoption curve.
And increasing adoption of asset investment planning software and methodology sort of leading into the IPO in 2021.
We know that we're on the somewhere on the third part of that as in total adoption curve.
Speaker 1: And we put in place, you know, a lot of capacity globally, you know, we put in place that that global footprint that we like to talk so much about. There's a lot of capacity in there for us to grow.
And we put in place a lot of capacity globally, we put in place that that global footprint that we like to talk so much about there's a lot of capacity in there for us to grow.
Speaker 1: So a lot of that investment is already in place. And we're sticking to that strategy. The strategy was always to accelerate in post IPO. We think that we're starting to see that now. And then we chart our path backwards profitability. But we've got pretty good capacity for this year and even next year.
So a lot of that investment is already in place and we're sticking to that strategy. The strategy was always to accelerate in a post IPO.
We think that we're starting to see that now and then we chart a path back towards profitability, but we've got pretty good capacity for this year and.
And even next year.
Speaker 1: So, it's really about execution more than it is about additional investment in the near-term. And then when we get into the end of next year, obviously, we need to start looking at capacity for 2025. But in the short-term, we're certainly focused on ensuring that we're getting the ROI on the investment that we've already put in, rather than putting in a lot more investment. So, you know, we're driving back towards profitability, and that's probably a good place for Chris to chime in on operating margins.
So it's really about execution more than it is about additional investment in the in the near term.
And then when we get into the end of next year, obviously, we need to start looking at capacity for 2025, but in the short term. We are certainly focused on ensuring that we're getting the ROI on the investment that we've already put in rather than putting in a lot more investment.
We're driving to back towards profitability and Thats, probably a good place for Chris to chime in on operating margin.
Speaker 2: Yeah, thanks, Paul. Obviously, we don't provide guidance on any kind of specific point in time where we're going to break even. But just as Paul was saying, we, you know, looking at our performance, we believe 2023 will be our, you know, our biggest loss year. And in 2024, with the investments that have already been made,
Yeah. Thanks, Paul obviously, we don't provide guidance on any kind of specific point in time, where we're going to breakeven, but just as Paul was saying we.
Looking at our performance, we believe 2023 will be our you know our biggest last year and in 2024 with the investments that have already been made.
Speaker 2: And, you know, the acceleration, I'd say, of the machine that we've built now, the minimum global footprint, will take big strides back on our path to profitability in 2024. I can tell you that we're absolutely committed to that internally. And just as a reminder, I mean, that's where we lived most of our life prior to the IPO, we were, you know, spent a decade effectively breaking and growing it at nearly a 50% keg or so, I think that's...
And you know the.
The acceleration I would say of the machine that we've built now the minimum global footprint will take big strides back to are on our path to profitability in 2024, I can tell you that we're absolutely committed to that internally and just as a reminder, I mean, that's where we lived most of our life prior to the IPO we were spent.
A decade effectively breakeven in growing at nearly a 50% CAGR. So I think that's.
Speaker 6: That is our history and we're all eager to get back there. And yeah, I'll leave it there.
That is our history and where we are all eager to get back there and.
Yeah.
I'll leave it there.
Alright, Thanks, guys. That's it for me.
Thanks, Matt.
Speaker 3: Your next question comes from Maxim Matyshansky of RBC Capital Markets. Your line is already open.
Your next question comes from Maxim <unk> of RBC capital markets. Your line is already open.
Speaker 7: Great thanks, good evening. And just following up on the FAP partnership, it's great to see an improvement to the incremental pipeline. Just wondering whether you or FAP have a higher confidence in closing these leads given FAPs, both a marketing expertise or potentially co-police coming into the process at a later date. Is that the case? Or is there just as much uncertainty about these incremental deals to close as it is for the ones you source yourself?
Great. Thanks, Good evening, just following up on the S&P partnership it is great to see an improvement to the clinical pipeline I'm. Just wondering whether you are especially if you have a higher confidence in closing these leads given S&P's go to market expertise or potentially companies coming into the process.
Later date is that the case or is there just just as much uncertainty about these incremental deals to close as it is for the ones you source yourself.
Speaker 1: Yeah, it's a it's a good question. Hi, Mac. So the
Yes. It is.
Good question.
So the.
Speaker 1: If you look a little bit into the history of things, I mean, we used to effectively, in a strange way, kind of compete with SAP, you know, so we would quite often walk into deals and SAP would
If you look a little bit into the history of things I mean, we used to effectively.
A strange way kind of compete with this evening.
So we would quite often walk into deals and NSA Haywood.
Speaker 1: you know, be very confident because they're a big company with lots of software on their books and they would take the functional specs and then we'd have the argument as to which company was better suited to solving the problem. That doesn't happen anymore. So SAP, when they're confronted with an AIP-shaped problem, point directly towards Coppola and say, look, you should use this.
Be very confident because they're a big company with lots of software on their books and they would take the functional specs and then we would.
We have the argument as to which which company was was better suited to the to solve the problem that doesn't happen anymore.
So when they are confronted with a and AIP shapes problem point directly towards correlates and say look you should use this.
Speaker 1: And in addition to that, we're more integrated with their thinking on either side of us. So, you know, they're very strong at EAM, they're very strong at PPM. They have an emerging APM sector. And obviously the backbone of a lot of these companies is driven by SAP in the FireCode space. So, being part of that environment and being part of...
And in addition to that we're more integrated with with the thinking on either side of us.
Very strong in EAM, they're very strong in ppm.
They have an emerging APM sector and obviously the backbone of a lot of these companies is.
Driven by S&P in the podcast space.
Being part of that environment and being part of.
Speaker 1: a buying process where the incumbent solution across a lot of the digitized environment of the client.
Our buying process, where the incumbent solution across a lot of the digitized environment at the client.
Speaker 1: is SAP and they used to buying that and buying things that fit in with that with that landscape can only help us
And they used to buying that and buying things that fit in with that with that landscape can only help us.
Speaker 1: So I think to the extent that we get past this point where it's like, properly, you know, who are you and where do you fit in, and we're actually part of a bigger, bigger environment, I think it will help us to accelerate. We certainly hope so, you know, we're cautiously optimistic about that, but, you know, we're working hard on ensuring that SAP are fully educated as to what we do, where we fit, how they position us and how they advocate for us.
So I think to the extent that we get past this point worth like calculated you and where do you sit in and were actually part of the bigger bigger environment I think it will help us to accelerate we certainly hope so.
We are cautiously optimistic about that.
We're working hard on ensuring that if youre fully educated as to what we do where we fit how they position us and how they advocate for us.
Speaker 1: And yeah, we're pretty confident that that will bear fruit in due course. I do think that it will accelerate our closes. I think it will definitely accelerate our entry into some of those market sectors where we're not traditionally strong and aren't fully referenced.
Yes, we are pretty confident that that will bear fruit in due course, I do think that it will accelerate our closes.
It will definitely accelerate our entry into some of those market sectors, where we have not traditionally strong in fully referenced.
Speaker 1: And so, you know, in terms of shortening the tail cycle, particularly in those newer industries, and also, you know, ensuring that we're not scaling our internal resources directly in line with our growth, and we're starting to see some leverage out of that. I think it's going to be very useful.
And so in terms of shortening the sales cycle, particularly in those new industries.
And also.
Ensuring that we're not scaling our internal resources directly in line with our growth and we.
Starting to see some leverage out of that I think it's going to be very useful.
Early days.
Speaker 7: And just, I guess, from the partnerships rather than SAP, can you maybe provide an update as how those are going? And I mentioned, you deepen the relationship with Accenture, but just in general, are the consulting partners growing the pipeline or maybe even at this point, closing deals with the pace that you're expected? And do you feel that you have, and mostly, the right partners in place in order to do that? And now it's just about deepening and expanding the existing partner base.
And just I guess on the partnerships other than SAP can you maybe provide an update of how those are going I know you mentioned you deepen their relationship with Accenture, but just some general or the consulting partners growing the pipeline or maybe even at this one closing deals at the pace that you would.
Good.
And do you feel that you have and mostly the right partners in place.
To do that and now it's just about deepening and kind of expanding the existing partner base.
Yes, another good question.
Speaker 1: Yeah, and another good question, you know, we tend to announce things that are concretely announceable to the milestone events and the milestone event with Accenture is a good one. You know, we've, in Accenture's estimation, we have done enough deals with them and we have enough forward-looking pipeline for them to
We tend to announce things that are that are concretely announced <unk> set a milestone events in the milestone event with Accenture is a good one.
In Accenture that estimation, we have done enough deals with them and we have enough forward looking pipeline for them too.
Speaker 1: you know, give us a partner manager and introduced us to a much more programmatic approach to, you know, building a practice around Copperleaf and going to market together. So that's a big milestone for us, rather than the part which was, you know, a very good relationship, but it was a little bit more ad hoc around specific accounts.
Give us a partner manager and introduced us to a much more programmatic approach to building.
Building a practice around population going to market together, so that's a big milestone for us rather than the past, which was a very good relationship. It was a little bit more ad hoc around specific accounts.
Speaker 1: So, you know, that is moving forward. We have other partnerships that are building, and we have a partnership strategy.
So that is moving forward we have other partnerships that are building and we have a partnership strategy, we cannot be all things to all people and there is a limit to how much we can do with how many partners. We wanted to avoid channel conflict, because thats always an issue, but with so much time.
Speaker 1: You know, we can't be all thanks to all people and there's a limit to how much we can do with how many partners.
Speaker 1: We want to avoid channel conflict because that's always an issue, but with so much tam and so much white space and dinners to the extent that we're penetrated at the moment.
Him and so much wide space and to the extent that we're penetrated at the moment, it's a really good blank canvas for us to build strong partners at the top end of town really really credible partners like SAP and Accenture.
Speaker 1: It's a really good blank canvas for us to build strong partners at the top end of town, really, really credible partners like SAP and Accenture, just third tier companies that we're working with and not have the
Companies that we're working with and not have the mobile app.
Speaker 1: And in fact, those two things converge, because Accenture is one of SAP's biggest partners globally, and they're strong implementers of the intelligent asset management landscape particularly, and that includes a lot of SAP software, and it now includes Copperleaf.
And in fact, those two things can bitch, because accenture is one of the biggest partners globally.
And the strong implemented that the intelligent asset management.
Inscape, particularly and that includes a lot of SAP software in that now includes cappelli.
Speaker 1: So all of these things come together and we have a strategy for ensuring that we're getting the best out of that. We're not putting massive resources into trying to be everywhere at all times and we're then very, very selective about who we work with and where we put our enablement resources. So that's...
All of these things come together and we have a strategy for ensuring that we're getting the best out of that we're not putting massive reset resources into trying to be everywhere.
At all times and with a very very selective about who we work with and where we put our enablement.
Resources.
Does that answer does that answer your question.
Speaker 7: You know that that helps and it leads me to my next question more broader, but just.
That helps.
Leaves me to my next question more broader.
But just.
Speaker 7: In terms of how you position yourself and brand yourself in the marketplace, the value fair with methodology is clearly a very sticky part of that product for customers.
In terms of how you position yourself from brand yourself in the marketplace. The value favorite methodology is clearly a very sticky part of that product for customers.
Speaker 7: customers that are more advanced in their as-management programs, I can see how that would be a track that I'm wondering. Does any in your view revenue being left at table from customers that maybe are mature enough? If you want to send up for a new way of doing business with a value framework.
Customers that are more advanced in their asset management programs I can see.
How that would be attractive I'm wondering if there's any in your view revenue being left on the table.
From customers that maybe are mature enough.
Do you want to sign up for a new way of doing business with the value framework.
And.
Speaker 7: Aren't I just physically enough for that at the moment? I'm just curious how you think about that. And is that something that maybe it's a more rapid start solution that might be with the address, but I'm sure it's how you think about it.
Our R&R is sufficiently enough for that at the moment I'm. Just curious how you think about that and is that something that maybe it's a more rapid start solution that might be able to address but curious how you think about it.
Yeah, and it's a great question and the toys.
Speaker 1: Yeah, and it's a great question and it's always a very tempting thing to try and go top to bottom in the market. You know, at the moment, we're largely, largely a large enterprise sales company and we work with with big critical infrastructure companies and that is still largely white space for us, even in our core.
A very tempting thing to try and get a top to bottom in the market.
At the moment, we're largely largely a large enterprise sales company and we work with.
Big critical infrastructure companies and that is still largely white space for us even in our core.
Speaker 1: So even in power, the integrated power utilities or the component pieces of that in generation transmission or distribution, we're still single digit penetrated even in our core market.
So even in power integrated power utilities or the component pieces of that in generation transmission or distribution, we're still single digit penetrated even in our core markets.
Speaker 1: So we don't want to distract ourselves. But the second part of your question is a really interesting one. And you have seen things like the the copper leaf H2O solution, which was very specifically tailored as a low configuration rapid deployment solution for the UK and Ireland water utilities. That has given us quite a lot of experience in that area. And we've been able to take that on the road.
We don't want to distract ourselves, but the second part of your question is a really interesting one and you have seen things like the.
The <unk> <unk> solution, which was very specifically tailored as a as a as a low configuration rapid deployment salute.
<unk> solution for the UK and Ireland.
Water utilities that has given us quite a lot of experience in that in that area and we've been able to take that on the road. Similarly.
Speaker 1: Similarly, the C-NAME methodology for asset risk modeling, which was originated in the UK through off-gem, the regulator there, that's been a very, very popular methodology. And we built some rapid start solutions for that, which have been adopted in many countries globally as well.
Similarly, the C&I methodologies.
For asset risk modeling, which was originated in the UK through Oct, Jim the regulator there.
That's been a very very popular methodology and we built some rapid start solutions for that which had been adopted in many countries globally as well.
Speaker 1: So that, in addition to increasingly a phased approach to implementation and also sales, so going to clients and diagnosing, you know, the highest value minimum spend place to start, using that as a phase one, and then employing a land and expand approach to
So.
In addition to increasingly a phased approach to implementation and also sales.
So going to clients and diagnosing the highest value minimum spend place to stop using that as a phase one and then employing a land and expand approach too.
Speaker 1: Phase 2, 3, 4 and getting our clients more and more and more value as we go. But giving them a place to start, which is a consumable buy for them.
Phase 234, and getting our clients more and more and more value as we go but giving them.
Which is a which is a consumable by for them.
Speaker 1: You know, those things are definitely on our agenda and they're actually now successful strategies across Coppoli.
Those things are definitely.
On our agenda in the directly now successful strategies across properly.
Speaker 1: Going after the mid market or the lower end of the market is probably a step for later. We really do need to focus on our core market segments and we're pretty clear about what those are.
Going after the mid market or the lower end of the market is probably a step for later, we really do need to focus on our core market segments, and we're pretty clear about what those are.
Great. Thanks.
Speaker 3: Your next question comes from Thanos of BMO Capital. Your line is already open.
Your next question comes from Dan <unk> of BMO capital. Your line is already open.
Speaker 8: Hi, I think that's a good. Paul, it's the case for a lot of enterprise software companies that pipeline is just getting more towards expansion opportunities versus not new logos as a function of the macro. Is that a dynamic that you're seeing in your business as well or not as much given where you are in the growth cycle?
Hi, good afternoon.
Paul It's the case for a lot of enterprise software companies that pipelines are skewing more towards expansion opportunities versus.
Net new logos.
Some of the macro.
The dynamic that you're seeing in your business as well or not as much given where you are in the growth cycle.
Speaker 1: No, well I think you kind of answered the question for me at the end of this. I mean, we're largely white space and we need to be very very focused on bringing new logo deals into the pipeline. I mean that's the lifeblood and the future of copper leaf.
No I think you kind of answered the question for me at the at the end of this.
Where we.
Largely white space and we need to be very very focused on bringing new new.
Good deals into the into the pipeline I mean, that's the lifeblood and the future of Copel <unk>.
Speaker 1: You know, we have a lot of opportunity in the installed base for cross-telling upsell and we constantly develop more software as well. So, you know, there's a big opportunity in the install base, but we're very, very focused on new logos and we're not seeing a skew toward, you know, having to sell into the install base to make up our numbers.
We have a lot of opportunity in the installed base for cross selling upsell and we constantly develop more software as well so.
There's a big opportunity in installed base, but we're very very focused on new logos and we're not we're not seeing a skew towards.
Having to sell into the installed base can make up that numbers.
Speaker 1: We are very focused though on ensuring that the install base is happy, retained, engaged with us and continues to develop their co-operative environment. We've got
We are very focused on ensuring that the installed base is happy retained and engaged with US and continues to develop there theyre copper-leaf environment and we've got specific resources allocated to those efforts are internally.
Speaker 1: specific resources allocated to those efforts internally. So, as we scale, you start to get into that classic model of
As we scale you start to get into that classic model of <unk>.
Speaker 1: of having a dedicated group of salespeople that are focused more on cross-stale upsell and increasing the value that we're getting our install-based client.
Having a dedicated group of salespeople that are focused more on cross sell upsell and increasing the value that we're getting our install based clients and others that are very very specifically focused on bringing new logos into to feed the front end of that.
Speaker 1: and others that are very, very specifically focused on bringing new logos into to feed the front end of that future revenue pipeline.
Does that future revenue pipeline, but we're not seeing we're not seeing without point in the evolution in all of the white space that we have in our in our Tam and some were not saying.
Speaker 1: But we're not seeing, we're not seeing, you know, with our point in the evolution and all of the white space that we have in our, in our cam and tom.
Speaker 1: We're not seeing an issue like your describing. You know, what you're describing is super recognizable, but it's more in the mature business.
Issue like yours, Youre, describing what.
You are describing is super recognizable, but it's more in the mature businesses.
I think.
That's helpful.
Speaker 8: It's helpful. Can you update us with respect to the key pushbacks you tend to encounter in a sales cycle? So to the extent you have a good prospect and you can't get that to a deal, let's hope. It's often just have to do with a bunch of availability. Is it still that? There's a lot of education that's be done to persuade the customer to value propositions. Since...
Can you update us with respect to the key.
Key pushback you tend to encounter in our sales cycle. So to the extent you have a good prospect and you can't get to a deal that closed.
It's often just have to deal with a bunch of availability.
Is it still that there's a lot of education has to be done to persuade the customer value proposition since.
Speaker 8: You kind of need to know what you do or just what are some of the hurdles that you're encountering most commonly.
Kind of unique in what you do or what are some of the hurdles that youre encountering most commonly.
Speaker 1: Yeah, it's a great question. And I think the points of objection very depending on where you are in the pipeline. We very rarely have a bad conversation in the early stages. People are intrigued about the possibilities that value-based decision-making present them. They're all wrestling with the problem. They're generally using Excel and a team of people to try to solve the problem.
Yes, it's a great question and I think the points the objection vary depending on where you are in the pipeline, we very rarely have a bad conversation in the early stages people or people are intrigued.
About the.
The possibilities that value based decision, making present them.
They are all wrestling with the problem that generally using excel and and the team of people to try to solve that problem.
Speaker 1: they inherently know that they're not doing it as well as they possibly could be.
They inherently know that they're not doing it as well as they possibly could be and.
Speaker 1: And so the early stage is, you know, it's more about who are you, what do you do? You know, how do you, you know, how do you convince me that you can actually, you know, optimize across large sets of assets and huge portfolio of investment?
And so the early stages, it's more about who are you what do you do.
How do you.
How do you convince me that you can actually opt.
Optimize across large sets of assets and huge portfolios of investments.
Speaker 1: and make that a practical thing. You know, how do you actually come in and, you know, help our CAPEX community to make better decisions? And we're pretty good at that discussion.
And make that a practical thing how do you actually come in and help our Capex committee to make better decisions and we're pretty good at that discussion.
Speaker 1: It sometimes antivots into a data conversation. It's like, okay, well, how much data do we feed this?
Some times, then pivots into a data conversations like okay, well, how much data do we do we feed this.
Speaker 1: And, you know, coppally is in a very good situation with our bottom-up approach, which is largely around that asset data, but also the ability to implement the top-down approach, which is really poorly optimization. So it's effectively making the processes that they currently have better and more effective and taking the bias out of their decision-making and tame in complexity for them. We can start that straight away.
Coppola is in a in a very good situation with a bottom up approach, which is which is largely around that asset, but also the ability to implement the top down approach, which is really portfolio optimization.
It's effectively making the processes that they currently have better and more effective in taking the bias out of their decision, making and timing complexity for them.
We can start that straight away.
Speaker 1: So there's a couple of elements there where people kind of think that there's some kind of proof or companies think that there's some kind of a precursor of the answer around either process or data that they need to get to before they can start a copy.
So.
There's a couple of elements there were.
People kind of think that there's some kind of proof for companies think that theres, some kind of a precursor event around.
The process of data that they need to get to before they can start a couple of days.
Speaker 1: implementation and that largely isn't true. We meet them where they are and we immediately generate value and the software is so configurable and so flexible that we can then add more complexity as we go and more data as we go and they're They're payoff in terms of ROI or the benefit that they get from the system just increased
Implementation and that largely isn't true we make them where they are.
And we immediately generate value and the software is so configurable and so flexible that we can then add more complexity as we go and more data as we go and the payoff in terms of ROI or the benefit that they get from the system just increases.
Speaker 1: which is a little bit counterintuitive for many clients.
Which is a little bit a.
A little bit counterintuitive for many clients and to the data point, it's quite an interesting feature of copper that we design the algorithms and calculation into the value framework that help them make decisions.
Speaker 1: And, you know, to the data points, it's quite an interesting feature of Coppolae that we design the algorithms and calculations into the value framework that help them make decisions.
Speaker 1: Those algorithms obviously require inputs. And perversely, if you actually design those algorithms up front, and then you go back and you start to implement EAMS systems or APM systems, you can be very surgical about how you deploy those.
As those algorithms are obviously required inputs.
And perversely, if you actually design those algorithms upfront and then you go back and you start to implement Aam's systems or ATM systems. It can be very surgical about how you deploy those systems.
Speaker 1: in order to make better decisions later on. So starting with the question and the
To make better decisions later on so starting with the question.
And effectively the mechanism for answering those questions clearly defined really focuses the processes around collecting data and putting systems in place, which is more system of record for investments upstream of us and and also assets.
Speaker 1: And effectively the mechanism for answering those questions clearly defines really focuses their processes around collecting data and putting systems in place which is more system of record for investments upstream of us and also assets.
Speaker 1: So doing us first is probably better and saves them a lot of money and time when they're deploying their downstream or their upstream systems from us, and also the downstream systems
Doing a first is probably better and saves them a lot of money and time, when they're deploying their downstream or upstream systems from us and also the downstream systems.
Speaker 1: So we get those objections quite a lot of the time. Obviously, price comes up and we have to position value as a function. So we certainly don't like putting price on the table until we've made a clear value statement associated with the specifics of our client. The value engineering, which we've started to build and fund internally is a key mechanism for that.
We get those those.
Objections quite a lot of the time, obviously price comes up and we have to position value.
As a as a function. So we certainly don't like putting price on the table until we've made it clear value statement, that's associated with the specifics of our client the value engineering, which we.
Which we've started to that and to build and fund internally is a key mechanism for that.
Speaker 1: So, you know, those are the those are the kind of stages of the cycle and then closing are some of the things that you talked about.
So those are the those are the kind of stages of the cycle and then closing some of the things that you talked about.
Speaker 1: You know, it's, you know, they've got budgetary requirements and quite often they budget annually. So you need to be part of the budgeting cycle. So there's money put aside for what we do. We're not usually naturally part of that. So, because, you know, we're quite a new solution. So we need to get way upstream of that and make sure that we're positioning ourselves well to be budgeted for before we can close those, we can close those deals.
It's.
Good budgetary requirements and quite often they budget annually. So you need to be part of the budgeting cycles. There's money put aside for what we do we're not usually naturally part of that so because we're quite a new solution. So we need to get way upstream of that and make sure that we're positioning ourselves well to be budgeted for before we can.
Those that we could close the deal.
Speaker 1: And then, you know, it's part of, it's just competitive. You need to get through the RFPs, respond appropriately, and outsell the competition, which is often not directly in competition with us, but just outsell the competition in terms of being a better solution across more of the space.
And then it's part of it's just competitive you need to get through the Rfps respond appropriately.
And our sell of the competition.
Which is often not directly in competition with us, but just to outsell the competition in terms of being a better solution across more of the state.
Speaker 1: So it's a, you know, what I'm describing is a large enterprise software sale.
So what I'm describing is the large enterprise software sale.
Speaker 1: You know, it takes a village, you've got to have multi-point contact into the client.
It takes a village you've got to have multi point.
<unk> contacted with the client.
Speaker 1: You can't be single thread on waiting one specific champion in the client. It's too big for that.
You can't be single thread on any one specific champion and decline that's too big for that it tends to be a transformative event, taking uncoupled. They transform the culture from a kind of my my project at all costs to much more of a value based portfolio optimized approach, which is quite a shift for many of our clients.
Speaker 1: It tends to be a transformative event taking on couple of SPA transform their culture from my project at all costs to much more of a value-based portfolio optimized approach, which is quite a shift for many of our clients.
Speaker 1: And so it involves a cultural shift, which takes leadership and you need that leadership to be all lined up around it before before it truly gets across the line.
So it involves a cultural shift which takes leadership and you need that leadership to be aligned up around that before before it truly gets across the line.
Speaker 1: again, which is true for many of the big ERP companies and other large enterprise software companies. So it's a recognizable track and I've been down at many times before and Copperleaf is a little different. Other than the fact that we really don't have too much.
Again, which is true for many of the big ERP companies and and other large enterprise software company. So.
It's a recognizable.
Track and I've been down at many times before and and.
A couple of basis little different other than the fact that we really don't have too much direct competition and.
Speaker 1: direct competition and and you know it's once you get to the point where the client is bought in it can be quite good
It's a once you get to the point, where the client is bought in it tends to be quite good.
That's good color Thanks, Paul I'll pass along.
Speaker 3: Your next question comes from Koji Ikeeda of Bank of America. Your line is already open.
Your next question comes from Koji Aikido of Bank of America. Your line is already open.
Speaker 9: Hey guys, thanks for taking the questions. I got a couple here. So in your prepare remarks, you called out a couple of big deals, you know, the US natural gas distribution company and an integrated power company, utility company in Brazil. So can you talk a little bit about how long those sales cycles were and how are you thinking about overall sales cycles today? And maybe the ability or the potential to shorten it.
Hey, guys. Thanks for taking the questions I got a couple here.
In your prepared remarks, you called out a couple of big deals you know the U S natural gas distribution company in AR.
<unk> integrated power company utility company in Brazil. So can you talk a little bit about how long those sales cycles. We're in and how are you thinking about overselling overall sales cycles today.
Andy maybe the ability or the potential to shorten them in the future.
Speaker 1: Yeah, thanks, Cody. I mean, it's, you know, if there was a key focus of copper, if I say that's particularly on the go to market side, it would be that one. We're doing everything we can to shorten sales cycles. And, you know, it's not like our clients don't want what we do. They do want what we do. We just need to be the highest priority thing for them to do next, particularly in the constrained environment.
Yes, Thanks Cody.
If there was a key focus of Copel, if I'd say that.
Particularly on the go to market side, it would be that one.
We're doing everything we can to shorten sales cycles and.
Not like a client doesn't want what we do.
They do what we do we just need to be the highest priority thing for them to do next particularly in a constrained environment.
Speaker 1: that we're living in and that's on us, you know, we need to prove value and just prove that a copper leaf implementation is going to be of higher value strategically in the long term but also monetarily in the short term than the other things that they could potentially do.
That we're living in.
And that's on US we need to prove value and just prove that the decoupling implementation, it's going to be all of the higher value.
Strategically in the long term, but also monetary early in the short term than the other things that they could potentially do.
Speaker 1: And I think we're getting good at value engineering. I think we've got a very strong industry team now that speaks the language of the client.
And I think we're getting good at value Engineering, I think we've got a very strong industry team now that speaks the language of the client.
Speaker 1: We're collecting up our references and our door-based clients are working for us. We're completely...
We're collecting up out references in our installed base clients are working for us.
Completely.
Speaker 1: humbled by the presentations that are made by our clients to our prospective clients about the value that we generate. That's a key thing for us. The fact that we've never churned a client, so everybody who's actually deployed and switched on the software and started to use it is still using it, is a good endorsement for us and we're making much of that.
Humbled by by the presentation that I made by our clients to our prospective clients about the value that we generate.
That's a key thing for us the fact that we've never churn decline. So everybody is actually deployed and switched on the software. It started to use it is still using it.
Is it a good endorsement for us and.
Where we're making much of that.
And it's a it's a.
Speaker 1: It's a key focus for us to try to shorten those sales cycles. I don't want to necessarily comment on those two in terms of how long they took. No longer than average, I would say. Huge congratulations to our team in Latin, the getting Brazil done and getting off the mark with the first.
It's a key focus for us to try to shorten the sales cycle. So I don't want to necessarily comment on those two.
In terms of how long they took no longer than average I would I would say huge congratulations to our team in Latam getting Brazil done and getting off the mark with the first.
Speaker 1: you know core utility and providing that as a reference point in Brazil will accelerate our progress in Latin America and the team's done an amazing job getting that done so a big shout out to the little ATTAM team.
Core utility and providing that as a reference point in Brazil.
<unk> accelerate our progress in Latin America, and the team has done an amazing job getting getting that done so a big shout out to the to the Latam team.
Alright good.
Speaker 3: Your next question comes from Gavin Fairweather of Cornmark. Your line is already open.
Your next question comes from Gavin Fairweather of core Mark Your line is already open.
Oh, Hey, good afternoon, if I'm understanding your commentary right. It doesn't sound like the sales environment has gotten much better or much worse, but you feel better equipped to kind of execute in this environment. So I guess I'm curious what's driving that is that you know the global growth office is that what youre seeing in the Salesforce product Salesforce productivity data, maybe just unpack.
Speaker 8: Oh, hey, good afternoon. If I'm understanding your commentary, right, it doesn't sound like the sales environment has gotten much better or much worse, but you feel better equipped to kind of execute in this environment. So, I guess I'm, I'm curious. What's driving that? Is that, you know, the global growth office? Is that what you're seeing in the sales for product salesforce productivity data? Maybe just unpack your feeling about the ability to execute in the current macro?
Your feeling about the ability to execute in the current macro.
Speaker 1: Yeah, thanks, Gavin. The team is settling in. We grew pretty fast from 2021 for 18 months or so, brought a lot of new people in. This is large enterprise sales in general, but particularly Copperleaf is something you need to
Yeah, Yeah. Thanks, Kevin.
The team is settling in and we talked about we grew pretty fast from 2021 for for 18 months or so it brought a lot of new people in.
This is really a large enterprise sales in general, but particularly calculate if it's something that you need to.
Speaker 1: You need to build some muscle memory on and settle in and tenure is important. We haven't been hiring aggressively over the past 12 months. And the people that we have are starting to get more and more tenure. They're starting to work it out.
You need to build some muscle memory on and settle in and tenure is important.
We haven't been hiring aggressively over the past the past 12 months.
And the people that we have.
And to get more and more tenure they are starting to work it out.
In in conjunction with that we put a new operating model in place as you know for the company and that includes the go to market side. The global growth office is a big enabler of the of the field.
Speaker 1: In conjunction with that, we put a new operating model in place, as you know, for the company, and that includes the go-to-market side.
Speaker 1: The Global Growth Office is a big enabler of the field.
Speaker 1: The ability for a single account executive to have all industries, all product, the ability to value engineer and the ability to leverage partners. It's not a reasonable expectation on an account executive and you do need to build in those mechanisms to ride to the aid of the account executive when they need those specific things.
The ability for a single account executive to have all industries, all product the ability to value engineer and the ability to leverage.
Leverage partners, it's not a reasonable expectation on an account executive and you do need to build in those mechanisms to ride to the age of the account executive when they need those specific things.
Speaker 1: So, all of those things are starting to gather a bit of tenure and gel together. It was a new operating model in January with new personnel at the heads of many of those things, and those people are kind of hitting their stride now. And it's been very good for us to have a consolidation year where we haven't been introducing a huge number of new people into the organisation and giving that team time to come together.
So all of those things are starting to gather a bit of tenure NGL together. It was a it was a new operating model in January.
With new personnel with the heads of time many of those things and those people are kind of hitting their stride now and it's been very good for us to have a consolidation year, where we haven't been introducing a huge number of new people into the organization and giving that team time to time to come together.
Speaker 1: In conjunction with that, our marketing organization has been building new collateral around the new operating model. So, we've got, you know, we've got new and refreshed industry collateral. We're running our AIPM forums.
In conjunction with that our marketing organization has been building new collateral around the new operating model. So we've got we've got new and refreshed industry collateral, we're running our AIP and forums.
Speaker 1: We're a little bit bigger, you know, so there's a bit of critical mass there where we can run specific. We used to run one big client forum globally and we bring all of our people together. We can now do that in markets and in industries as well. You know, we have a pipes forum and a wires forum.
We're a little bit bigger.
It's a bit of critical mass there, where we can run specific we used to run one big client for them globally, and we bring all of our people together, we can now do that in markets and industries as well we have a we have a path for them in a wise for them.
Speaker 1: where people come together to discuss much more granular elements.
People come together to discuss much more granular.
Elements, which just gets us more and more embedded as trusted advisers into specific segments of the market and all of that comes with a bit of scale and thoughts.
Speaker 1: which just gets us more and more embedded as trusted advisors into specific segments of the market. And all of that comes with a bit of scale and size.
Speaker 1: We're still pretty small compared to most ERP companies, but it doesn't stop us from having those elements in place in some form to ensure that we're covering all of those places. And I think that we've got that.
We're still pretty small compared to most ERP companies, but it doesn't stop us from having those elements in place in some form to ensure that we're covering all of those all of those places and I think that we've got that now.
Okay. That's helpful. And then just on the partner side I'm curious how many of your deals would be kind of partly or partner influence now and do you have any thoughts about where that might be able to go or where the kind of medium term, maybe kind of the next two or three or four years.
Speaker 8: Okay, that's helpful. And then just on the partner side, I'm curious how many reveals would be kind of partner influence now? And do you have any thoughts about where that might be able to go over the kind of medium term, maybe kind of the next two, three, four years?
Speaker 1: Yeah, I wouldn't like to necessarily throw out a number, but it's an accelerating proportion. And, you know, our partners come in different flavors. You know, we've got the GSIs, the General System Integrators. We've got the ISVs, the Independent Software Vendors on either side of it. We've got very specific, what we call content providers, you know, people who help with asset risk models and the specifics around doing.
Yeah, I wouldn't like to necessarily throw out a number but it's an accelerating it's a considered accelerating proportion and.
Our partners come in different flavors, we've got the the GSI is the general system integrators, we've got the Isps independent software vendors on either side of it.
We've got very specific what we call content providers people, who help with asset risk models and the specifics around doing.
Speaker 1: regulatory submissions, and more and more companies are building practices in their own way around the Coppolis platform, which is exactly what we want. The recognition amongst a big group and a much broader group of trusted advisors to our clients advocating for Coppolis in specific and different use cases.
Regulatory submissions.
More and more companies are building practices in their own way around the <unk> platform, which is exactly what we want.
The recognition amongst a big group and a much broader group of trusted advisors to our clients advocating for copper-leaf in specific and different use cases.
Speaker 1: And that's much more powerful than us going and trying to sell software.
And that's much more powerful than us going and trying to sell software.
Speaker 1: You know, so we're seeing more and more of that and we intend to pursue that, like I said, in a plan full way.
So we're seeing more and more of that and we intend to pursue that like I said in a plan full way, we can't be everywhere or all at once but we seem to have hit a certain level of critical mass and notoriety in a space, where we are the go to solution. So we are starting to get.
Speaker 1: We can't be everywhere all at once, but we seem to have hit a certain level of critical mass and notoriety in our space.
Speaker 1: where we are the go-to solutions. So we are starting to get some of those first tier players interested in what we're doing and building material resources and practices on their side, specifically focused on copplele.
Some of those first tier players interested in what we're doing and building material resources and practices on their side, specifically focused on properly. So I think we can only expect that the proportion of partner influenced and hopefully partner led deals will increase more of the services will be.
Speaker 1: So I think we can only expect that the proportion of partner-influenced and hopefully partner-led deals will increase.
Speaker 1: more of the services will be taken up by partners, which is good for us. It's moved the resource requirements. We will always have an internal customer group, field services group.
Taken up by partners, which are which is good for us to smooth the resource requirements. We will always have an internal.
Customer group field services group.
Speaker 1: doing that work, but it's good if we've got that as a core group at the tip of the spear and we've got a big ecosystem wrapped around us doing that work. It just makes it much, much more scalable.
Doing that work, but it's good if we've got that as a core group is the tip of the spear in we've got a big ecosystem wrapped around just doing that work. It just makes us much much more scalable.
Speaker 1: And you can just expect that to increase over time. So hopefully what that means is that software sales and subscription particularly becomes a much bigger proportion of our revenue over time. While, of course, the dollar number on those services is going to grow, it just won't grow in proportion to the software number.
And you can just see it.
Expect that to increase over time.
Hopefully what that means is that software sales and subscription, particularly becomes a much bigger proportion of that revenue.
Over time well.
Of course, the dollar number on those services is going to grow it just won't grow in proportion to the to the software number.
That's it for me thanks, so much.
Thanks, Ken.
Speaker 3: Your next question comes from John Xiao of National Bank. Your line is already open.
Your next question comes from John Shao of National Bank Your.
Your line is already open.
Speaker 10: Thanks for taking my question. It looks like your partnership ecosystem is gaining momentum this quarter. And Paul, you already mentioned the channel conflict earlier. So I'm just curious if that has anything to do with this quarter's, you know, year of your decline in professional services.
And yes, thanks for taking my question.
Looks like your partnership ecosystem is gaining momentum this quarter and Paul you already mentioned that channel conflict earlier. So I'm just curious if that has anything to do with this quarter's yogurt decline in professional services.
No.
Not really.
I can jump in on that one John no. It's nothing to do with with partners. This actually goes back to some of the commentary that we made in Q2 just talking about.
Speaker 2: I can jump in on that one, John . No, it's nothing to do with partners. This actually goes back to some of the commentary that we made in Q2 just talking about.
Speaker 2: Some of the delays that we're seeing, not only with deals, but actually even closed deals where client resource availability has pushed some services out and delayed a little bit. And that's the big driver for the reduction in services this quarter.
The delays that we're seeing not only with deals, but actually even close deals where a client.
Resource availability has pushed some services out and delayed a little bit and that's the big driver for the reduction in services this quarter.
Okay. That's helpful and regarding your new customers in the U S and Brazil, maybe because you guys and could.
Speaker 10: Okay, that's helpful. Regarding your new customers in the U.S. and Brazil, maybe could you give us some additional colors regarding their size of deployment and maybe their current spending relative to their WalletShare potential?
Could you give us some additional color regarding the size of deployment and maybe their current spending relative to the to their wallet share potential.
Yeah, we don't throw out numbers around around specific specific clients, but it's both of those deals will land and expand deals will get throughout the space generally speaking we have a proportion of the software not everything in a.
Speaker 1: Yeah, we don't throw out numbers around specific clients, but it's both of those deal to land and expand deals, we'll get through our first phase, generally speaking, we have a proportion of the software, not everything in a proportion of their business, not everywhere. And so, there's lateral.
<unk> of their business not everywhere.
And so theres lateral.
Speaker 1: opportunities for us to grow either across their lines of business and in more and more of their spend and Hopefully to the point where we're competing everything that they want to do for share of wallet on a value basis You know at the enterprise level like some of our clients have got to that's that's nirvana for us And and hopefully we end up managing their existing assets late and running through predictive analytics
Opportunities for us to grow either across their lines of business and in more and more of their spend and hopefully to the point, where we are competing everything that they want to do for share of wallet on a value basis at the enterprise level like some of our clients that go to that's that's Nirvana for us and hopefully we end up managing their existing assets late in.
Running through predictive analytics and long term asset lifecycle management.
Speaker 1: and long-term asset lifecycle management in conjunction with the top-down portfolio optimisation of the project that they want to do on a shorter-term basis.
In conjunction with the top down portfolio optimization of the projects that they want to do on a on a shorter term basis, that's where we want to go that but both of those clients to land and expand clients and prevent that provides us with big opportunity in India.
Speaker 1: You know, that's where we want to go, but both of those clients are land and expand clients, and it provides us with big opportunity in the install base going forward, as is true with almost every client that we brought on board.
In the installed base going forward as is true with almost every client that we brought on board.
Okay. Thank you I'll pass the line.
Thank you.
Speaker 3: Your next question comes from Todd Kupland of CIBC. Your line is already open.
Your next question comes from Todd Coupland of CIBC. Your line is already open.
Speaker 8: Great, thanks. Good evening everyone. My question is, I guess, a little bit of a derivative of the last one with the 30% increase in subscription revenue in Q3.
Great. Thanks, good evening everyone.
Mike My question is I guess, a little bit of a derivative of the last one with the 30% increase in subscription revenue in Q3.
Speaker 2: It sounded like you said that. Took some from Q2. Did it also take some from Q4? No, yeah, I'll jump in there Todd. Hey, how are you doing? My comment on that was really to illustrate the timing. So what I was trying to illustrate there was we did have a couple of sass deals.
Did it sounded like you said that.
From Q2 did it also take some from Q4.
No yeah, what Mike I'll jump in there Todd Hey, How're you doing.
My my a comment on that was it.
Really to illustrate the timing so what I was trying to illustrate there was we did have a couple of SaaS deals that.
Speaker 2: that closed right at the end of Q2 2023. So obviously we see no revenue from that SaaS in Q2, but we managed to get a full quarter of it in Q3, right? And likewise, if we can close a SaaS deal right at the beginning of Q3, we also get a full quarter of it.
That closed right at the end of Q2 2023. So obviously, we see no revenue from not fast in Q2, but we managed to get a full quarter of it in Q3 right and likewise, if we can close a SaaS deal right at the beginning of Q3, we also get a full quarter of it.
Speaker 2: And that's what we were fortunate enough to see in Q3 was, like I said, just a couple of fast deals, and that's really all it takes, if they're large enough, a full quarter of it.
And that's what we were fortunate enough to see you know Q3 was like I said, just a couple of SaaS deals and that's really all it takes if they're large enough a full quarter of it.
And then in contrary to that or you know the opposite of that is what typically happens in and more or less what we generally see every quarter.
Speaker 2: And in, you know, contrary to that, or, you know, the opposite of that is what typically happens and, and more or less what we, we generally see every quarter, which is most of our deals do close at the end of the quarter. So we just typically don't see a full quarter's revenue recognition from those SAS deals. And that's, as I mentioned in my comments, probably what we'll see in Q4.
As most of our deals do close at the end of the quarter. So we just typically don't see a full quarter's revenue recognition from those SaaS deals and that's as I mentioned in my comments, probably what we'll see in Q4, okay. Great. Okay. Thanks for that clarification.
Speaker 1: Lots of questions on the pipeline, so I'll take all the comments that have been made.
Lots of question on the pipeline so I'll take all the comments that have been made.
Speaker 9: Um, I wanted to talk about the, the, the, the product a little bit, just wondering, you know, you've had now a couple quarters to.
I wanted to talk about the product a little bit just wondering you've had now a couple of quarters too.
Speaker 9: think about how generative AI might impact your customers and your product line, maybe just talk a little bit more about that. I think you talked last quarter about how you got everyone in account, but I'm just curious, how does it affect product demand in the market? Is it disruptive? Is it additive to what you're doing? Does it bring on new competitors? Just give us your thoughts on that. Thanks a lot. You're welcome.
Think about how generative AI might impact your customers and your product line.
Maybe just talk a little bit more about that I think you talked last quarter about how you got everyone in account, but I'm just curious how does it affect <unk>.
Product demand in the market.
Is it disruptive is it additive to what Youre doing does it bring on new competitors, just just give us your thoughts on that thanks a lot.
Yes, Thanks Todd.
Speaker 1: Yeah, look, we are progressing with our plans. Like we said, we introduced everybody to it early in the year and that happened very quickly after the year opened and generative AI was generating a lot of press.
Yes, it's look we are progressing with our plan like like we said you know we reintroduced to everybody to it early in the year and that happened very quickly after.
For the year, the year opened and and generative AI was with generating a lot of press.
Speaker 1: Since then, we've formed a team internally, we've done a review of our product roadmap and various elements of the product roadmap include generative AI and the ability to leverage that to our clients' advantage.
Since then we've formed a team internally.
<unk> done a review of our product roadmap and in various elements of the product roadmap includes generative AI and and they have the little leverage leverage that.
To our clients' advantage, we did flag as a risk internally that we might see our clients kind of sit still and sit on their hands a little bit while they tried to work out what the generative AI would come in and solve their problems, which were very confident knowing something about the technology that it that it won't replace us in any way.
Speaker 1: We did flag as a risk internally that we might see our clients kind of sit still and sit on their hands a little bit while they tried to work out whether generative AI would come in and solve their problems, which, you know, we're very confident knowing something about the technology that it that it won't.
Speaker 1: replace us in any way. But we haven't seen that quite honestly. You know, all everything's moved ahead and we're seeing very little objections associated with we're going to wait and see whether, whether the generative AI can solve this on its own, which would have been a completely misguided path for our clients to be on, but a very naturally, you know, expected situation with the hype that was surrounding it.
<unk>.
But we haven't seen that quite honestly.
Things moved ahead, and we're seeing very little objections associated with them, we're going to wait and see whether whether the generative AI can solve this on its own which would have been completely misguided Pos rab for our clients to be on a very naturally.
Expected.
<unk> situation with the Hartford with surrounding it.
Speaker 1: We think it's going to be really additive and it'll enhance particularly the user experience for Copperleaf as we go forward, and we're actively working on releasing features that will leverage that, you know, and many of these features are
We think it's going to be really additives and and it'll enhance particularly the user experience for the Coca leaf as we go forward and we're actively working on releasing features that we'll leverage that and.
Many of these features are.
Come with the the the migration to being a very strongly differentiated cloud first solution, which is which is our direction, which I'm sure. It doesn't come as a surprise inside the direction of every software company. So as we get more into that we'll we'll build in more features around generative AI and.
Speaker 1: come with the migration to being a very strongly differentiated cloud-first solution, which is our direction, which I'm sure doesn't come as a surprise. It's the direction of every software company. So as we get more into that, we'll build in more features around generative AI and it's just going to enhance the usability of the solution for our clients.
It's just going to enhance the usability of the solution for our clients.
Speaker 9: Thinking about it a little bit more long term, if you don't see it as disruptive, do you see it as an accelerant to helping your clients ultimately see the benefit of the product if you think about what it might do to your platform over time?
Thinking about it a little bit more long term.
If you don't see it as disruptive do you see it as an accelerant to helping your clients ultimately see the benefit of the product. If you. If you think about what it might do to your platform over time.
Speaker 1: Yeah, I definitely think so. You know, we deal with a very complex problem.
Yes, I definitely think so we deal with a very complex problem.
Speaker 1: And, you know, one of the one of the interesting things about AI is that can attain complexity quite nicely, you know, set up in the right way, you can use natural language requests.
And one of the one of the interesting things about AI as it can attain complexity quite nicely set up in the right way you can use natural language request to ask very complicated problems, which would take a super user to to sort of interpret into normal enterprise software space and I think.
Speaker 1: to ask very complicated problems which would take a super user to sort of interpret into normal enterprise software speak.
Speaker 1: And I think that we'll bridge that gap substantially and it'll just open up the power of Copperleaf to many, many more users who aren't necessarily technically savvy enough to be able to use the more complex, the complex solution by themselves.
We'll bridge that gap substantially in that we'll just open up the power of Copper-leaf too to many many more users who aren't necessarily technically savvy enough to be able to use the more complex the complex solution by themselves.
Any idea when you might pilot something like that.
Speaker 1: I wouldn't like to say, but we're well aware that if we take too long about it, all of that benefit will arbitrage itself out and we'll find ourselves behind the market. So we're trying not to be in that situation.
We wouldn't like to say, but we're well aware that if we take too long about it all of that benefit will arbitrage itself out and we will find ourselves behind the market. So we're we're trying not to be in that situation yeah. Yeah. Okay.
Speaker 9: Yeah, from, I guess from our perspective, any color along, I mean, natural language definitely moves. It moves a lot of things a long way. So helping us understand that leverage. And gender it is.
Yeah.
I guess from our perspective, any any color along I mean natural language.
Definitely moves it moves a lot of things are a long way so helping us understand.
That leverage and generative.
Speaker 1: Generative AI is so, it's worth remembering that we do have artificial intelligence and machine learning inherent in the current set of solution. So we've been on this stack of mail for a while and we've got some pretty good expertise internally on it. So, you know, generative AI and large language models are getting a lot of press.
Generative AISI, it's worth remembering that we do have artificial intelligence and machine learning inherent in the current set of solutions. So we have been on the stack a mile for a while and we've got some pretty good expertise internally on it.
Generative AI and lost language models are getting a lot of press.
Speaker 1: But the enhancement that are brought by the incorporation of more traditional AI and ML is substantial and we've been baking that into the product for some years.
The the enhancement that that are brought by the incorporation of more traditional AI and ml.
Is is substantial and where we've been on we've been baking that into the product with some years.
Great I appreciate the color. Thank you.
Yeah.
Speaker 3: There are no further questions at this time. I would hand over the call to Paul Sikorski. Please proceed.
There are no further questions at this time I would hand over the call to policy Croskey. Please proceed.
Speaker 1: Yeah, I'll just close the call by saying thank you for your interest in copple leaf. We always really appreciate the questions and the attendance and looking forward to presenting it again. Once we put put Q4 in the bag, we'll look forward to catching up again there.
Yeah, I'll just close the call by saying Thank you for your interest in Coppell. If we we always really appreciate the questions and the attendance and looking forward to presenting again once we put our put Q4 in the bag, we will look forward to catching up again.
Ladies and gentlemen, this concludes today's conference call.
Speaker 3: Ladies and gentlemen this concludes today's conference call. Thank you for your participation. You may now disconnect.
Thank you for your participation you may now disconnect.