Q4 2024 CXApp Inc Earnings Call and Business Update
Yeah.
Okay.
Thank you.
Speaker Change: Greetings and welcome to the CX AI fourth quarter and annual 2024 earnings call. At this time all participants are in a listen only mode. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded.
I'll now turn the conference over to your host.
Carrabba's Shake: Carrabba's Shake Chairman and CEO you may begin.
Carrabba's Shake: Thank you operator.
Speaker Change: I'm joined by our CFO joined when you go on this call as well and we are both excited to share with you our earnings for the full year 2024.
Speaker Change: We will also be providing you an overall business update on our progress in shaping the future of work and creating transformative employee experiences with our steadily yard <unk> Sky platform.
Speaker Change: By now everyone should have access to our earnings press release and elsewhere, you just went out.
Speaker Change: And as you're all aware, we have filed an extension for our 10-K and we plan to file before the extension that way.
Speaker Change: This information will also be found on our website www dot CX, app dot com or www dot <unk>.
Speaker Change: I'm going to go to the disclaimer slide is next.
Speaker Change: Please read them at your leisure.
Speaker Change: Dear shareholders <unk> is transformational to employee experiences a 'twenty.
Speaker Change: 24 has been a transformational year for the company on both the business and product side.
Speaker Change: Sky platform anchored on customer experience.
Speaker Change: An artificial intelligence AI is the most advanced technology solutions solving the biggest problems in our industry post the pandemic the return to office RTL and employee engagement.
Speaker Change: Our team has completed the product transformation to a single code base and streamlined our cost structure, resulting in a profitable.
Speaker Change: <unk> Sky one go to application business.
Speaker Change: We're investing in <unk>.
Speaker Change: For the massive opportunity to reshape the whole market for employee experiences.
Speaker Change: I'd like to kind of give you a snapshot of where we are now today versus a year ago.
Speaker Change: We still headquartered in the San Francisco Bay area with regional Tech hubs globally.
Speaker Change: Mobile presence and diversity of experiences gives us a leading edge have you shipped the future work everywhere.
Speaker Change: The 75 plus team members at Sky more than two thirds of engineers and we have doubled our staff in Silicon Valley focused on building, a genetic AI solutions and maintaining our technology and product leadership.
Speaker Change: Are you also just announced the hiring of trade related.
Speaker Change: Our new SVP of engineering.
Speaker Change: He has extensive experience at Apple Whatsapp, and Nvidia in developing and deploying state of the yard application technologies Nacho passion for scaling amazing experiences.
Speaker Change: Some of the most iconic brands in the technology industry make him a natural fit for sky.
Speaker Change: I look forward to working with Terry and building the best in class <unk> solutions for transformational employee experiences.
Speaker Change: And we at the start we've been a believer that the employees at the center of this multibillion dollar growing workplace experiences market and we are creating a new category and software called employee experiences the.
Speaker Change: The Sky platform is based on 37 filed patents with 17 of them already granted the substantial intellectual property not only establishes our company.
Speaker Change: No logical front runner, but also secures our position as a pioneer in the industry.
Speaker Change: We are proud to have some of the largest logos of the world as our customers that are at the leading edge of employee experience transformation.
Speaker Change: A key differentiator for our business is that we have a strong security and compliance credentials globally and that is the reason why you see so many logos from regulated industries. They use sky because they know they can trust us with their data and their enterprise security goals.
Speaker Change: And look at our deployment, we're in 200 plus cities. We're in 50 plus countries across five continents, we have really great customer experiences all over and the kosher Scott in the last year has really dramatically changed from being a services business to a SaaS going to an AI application business focused on <unk>.
Speaker Change: <unk> and three core values of the company purpose passion and positivity, we are passionate about solving the big problems in the future world using <unk> and we are super positive about creating a new paradigm of digital transformation.
Speaker Change: If the enterprise focused on employee experiences.
Speaker Change: So you asked a question why Sky why do Fortune 1000 liters to Sky.
Speaker Change: Around five different verticals from financial services to Technology Media Entertainment health care and consumer and the reason why they choose us as number one we have the best in class engaging user experience and UI. It's very intuitive has all of the seamless integration enterprises immersive content to provide that really amazing experience for employees.
Speaker Change: As they connect with their employer in their workplace.
Speaker Change: We saw some of the heart problems in the market in terms of challenging workflows complexity with the security as well as integrations within the enterprise, we provide the automated workflow and that enterprise level security as a trusted advisor and most importantly, we're delivering amazing insight because of our technology and capability.
Speaker Change: We're providing special intelligence to our to our customers, providing predictable outcomes and AI powered actions now with Sky view and a new applications. All in all when you look at US we are the best in class solution in the market. There are large competitors there we've been competing against we're winning against them because we provide these 3 million.
Speaker Change: Things that are a key differentiator.
Speaker Change: So I'm going to talk a little bit about the market now what is the market what has changed in the last year why are we see so bullish about sky.
Speaker Change: Sky and play experiences.
Speaker Change: You know one of the key things over the last year has been.
Speaker Change: A lot of press about returned to office.
Speaker Change: The future work is one of the biggest issues of our century and every single enterprise globally is looking to find solutions for their digital workplace and workforce.
Speaker Change: Both needed help enterprises and employees are navigating unchartered waters.
Speaker Change: Relative to our hybrid work in the post pandemic world and encountering significant challenges.
Speaker Change: Company Ceos and the C suite, one employees back in the office to be more productive engaged in the corporate environment and better utilize the workplace employees on the other hand, one flexibility to work from their home or the office and have high expectations. When it comes to having easy access to their workplace tools.
Speaker Change: Finding information and the ability to collaborate with peers from anywhere.
Speaker Change: This is a study that mckinsey completed recently that shows the leading talent trends and it's based on surveys of thousands of employees and employees across industries in the United States.
Speaker Change: And as you can see there was a huge surge in arterial across industries from 'twenty to 'twenty three 'twenty four.
Speaker Change: Around 34 basis points of increase in return to the office.
And this is the proportion of mostly in person workers that are now being asked to come to the office. There are still a lot of workers working hybrid and remote but this has been a year of change and when you look at the industries and we're working on all of these industries and we see that growth in terms of in office usage, whether it's in entertainment or financial services or checking.
Speaker Change: Holiday or medical we're seeing that in our in our industry as well. So this is an interesting trend that is growing we support not only return to office, but also remote but we do see that given the fact that our business is focused on providing amazing experiences.
Speaker Change: At the locations this is.
Speaker Change: A very positive trend.
Speaker Change: Besides that the next big issue that people are feeling.
Speaker Change: Employee experiences and Mckinsey is researching and shows an employee satisfaction across working models, whether it's remote or it's hybrid or is it.
Speaker Change: It can be offers that employee experience and productivity rates are relatively lower.
Speaker Change: The Mckinsey you've kind of gone further into it. So it seemed that you know there are five core areas.
Speaker Change: We're organizing and health and are the most frequently stated reasons leaders give for transitioning to argue the collaboration connectivity innovation Mentorship and skill development.
Speaker Change: Companies that hope to reach their studio organizational effectiveness goals should look beyond akio policies themselves to address the chronic problems that continue to take a toll on employee experience and productivity.
Speaker Change: And when you look at these.
Speaker Change: He starts it's pretty amazing that employee engagement is lower and more importantly, the view of employers or leaders in the organization versus employees is way different on all of these five metrics. So we believe this is the next frontier.
Speaker Change: Solving a real problem for workplace, which is employee experience and Thats, where our company has been focused on that really believe that we have solutions to solve this problem. This problem is really tough one and theres not nobody have solved it and we look forward to making making our solutions solve these problems.
Speaker Change: When you think about companies who.
Speaker Change: Asked her employer's employees to come back to the office. They must also provide a bridge between employees to facilitate collaboration innovation conversations and connections employee engagement is mission critical for the hybrid work with that is the true measure of the productivity of the enterprise as though the happiness of employee great work has always been about the ability to flip to.
Speaker Change: <unk> to your employees, Michigan and be able to feel fully productive in your office environment.
Speaker Change: Player engagement can be as simple as being able to easily navigate your campus using step by step navigation from your employees workplace experience up to something as complex as building a long term friendship with a co-worker who discovered.
Speaker Change: Who you discovered loves crossword as much as you do through the opposite until a social feed that connectedness inherent and successful work. The sculptures now extends beyond the four walls of the offers and the physical devices. The company provides them. It now includes transformative workplace solution that lets employees do you experienced a full work lifecycle from anywhere and Thats what we.
Speaker Change: It's Scott so as we as we think about Sky and how we've designed it.
Speaker Change: Let me be very clear about how <unk> is transformational to this whole space.
Speaker Change: This is you know we've been working with Gardner for the last year and a half as we collaborate with industry leaders on thought leadership and how the market is it Huawei.
Speaker Change: The way humans interact and collaborate with AI is taking a dramatic leap forward with the agenda here the agenda AI system understands what the goal of vision of the user is in the context.
Speaker Change: After the product to the problem, they're trying to solve to achieve this level of autonomous decision, making and action agenda era relies on a complex assemble of different machine learning natural language processing and automation technologies.
Speaker Change: Simply agenda Guy focuses on completing actions and outcomes versus just assistance like a trusted adviser that is proactive insightful and Astra solve problems. So we know we're going to show you a quick demo.
Speaker Change: Of our one of our first agenda.
Speaker Change: Kimberly I want to show you the future first of all what is coming and then we'll talk about what we achieved in 2024. So operator you can please play the video.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Actually all Premier Niemela reload the video.
Speaker Change: Okay.
Speaker Change: And you see this video Youll see.
Speaker Change: Well, we called just in time booking it as Kentucky aware it is multiple workflows being implemented simultaneously you'll get a meeting set up within a new York minute with all the multiple functions and you get it on your calendar you'd get to navigate where it is and you simply see a command and it gets done that's agenda. We're ahead of the market in getting.
Speaker Change: The solution.
Speaker Change: Uh huh.
Speaker Change: Okay.
Speaker Change: Operator, you can move to the next slide.
Speaker Change: Okay.
Speaker Change: Alright, so that was just a glimpse of the future and I'm going to tell you about today what is happening today, what we accomplished in 2024, so I think in one of our previous meetings.
Speaker Change: Meetings, we had talked about a sky platform the sky platform was.
Speaker Change: Recently in terms of <unk>, although we had some of the key pieces of mobile and cloud in our architecture, but I'm happy to say as of today all of the things on this page are now fully built and started being deployed with our clients. So the sky apps, we have multiple Oss from Android iOS and web and now we're gonna be on multiple devices.
Speaker Change: Not only is mobile devices and web devices, but the kiosk in the kiosk is a foundational year really amazing product for all office buildings, where you enter the building and you can now connect with your workplace as your employees with a single touch or a single command. So that is that is in production.
Speaker Change: <unk> as a rule engine that we're integrating with our platform that allows content management, but also allows.
Speaker Change: Players in where people to connect with the with the infrastructure as well as all the things that make the work happen and last but not least our analytics sky view wishes our analytics engine that give insights about what is happening in the space and what is happening with the application and what is what are your predictable outcomes that they need for their workplace.
Speaker Change: So all the products and now Willable were on multi cloud we have G. C. P is our main partner, but we are now.
Speaker Change: Floyd with Amazon.
Speaker Change: I'm, sorry, with Azure and we are also working with AWS. So we're gonna be truly multi cloud multi U S. And we are designing this for end to end infrastructure applications.
Speaker Change: So you can think about our experiences you know as we've talked before we've had this great amazing unified employee experience, which integrated 100, plus enterprise tools provided there's one single pane of glass, where you can connect with your employees.
Our friend and colleague as well as your workplace and with special intelligence, we provide the contextual awareness and the ability to interact as well as the ability to get insights and insights with what we're getting with our experiential analytics. It is not deployed in 2020 floor with major clients and it's gonna be still do all of our employees and.
Speaker Change: What I showed you a glimpse of agenda Gi we're building multiple agenda AI solutions that will be transformational to all our existing customers as well as new customers and the idea is very simple any work interaction will be implementing using natural language commands Paraguay trustful domain specific yeah, we're using.
Speaker Change: Our use of data and we're using inside their enterprise to provide really amazing.
Speaker Change: Amazing outcomes, so I'm going to talk next about what actually was done in 2024 from a customer adoption.
Speaker Change: Getting growth with existing clients as well as new clients.
Speaker Change: Number one single code base Sky one Dara this is available to all our existing customers. What this has enabled us the ability to have one common code across all of our applications allows us to provide an acceleration of future upgrades makes bug fixes much easy and provide stability to our code base and to implementation.
Speaker Change: And this has accelerated across all of our customers today. So every single one of our existing customers have access to it.
Speaker Change: Secondly, we had a really great year with wonderful clients, who has done more than 100% increase in there are are we saw largest expansion customer doubled already or are is growing dramatically and this is just the starting point. So we're excited about that expansion customer.
Speaker Change: As we told you last our last quarter, we were in the final stages of deploying our Sky One guard five platform, which is based on our more advanced coding technology, but also implement sky view and Sky Bts together I'm happy to say that we have completed a pilot and now we're in production with their client.
Speaker Change: Fledged campus and they have a big rollout plan for 2025 as they grow the business.
Speaker Change: You talked about sky kiosk as being fundamentally transformation all in the office space and Theyre in the lobbies and on the floors and we have now got our first paid deployment with a large technology companies in Silicon Valley. They are implementing it for their rte or it's very intuitive, it's very interactive and more importantly, it solves a real problem.
Speaker Change: When you walk into the office. So Sky Geos is now gonna be GAA and available to all our clients as well as our new clients.
Speaker Change: And one of the last final highlights I'll sure about is on Sky localization.
Speaker Change: We've been asked by a lot of our clients. This we're in so many countries and locations there's different attributes in terms of language in terms of local preferences. So we've been working with Google on this and now we are deploying our first implementation of the localization solution that has eight languages and different localization features for large entertainment client newfield.
Speaker Change: This was also destined for scale with all our clients.
Speaker Change: Across the World and we find this is gonna be a key differentiator and praying those differentiated experiences.
Speaker Change: So those are upbeat as regards to the product and customers.
Speaker Change: I also will say that we've had really good renewals, especially in Q4, where we've been able to take some over our major clients through the next level and they are.
Speaker Change: Renewed with us, but also have really bought into the roadmap that I shared with you. They all believe that these are the right things for them at this scale up.
Speaker Change: Okay.
Speaker Change: So I'm now going to turn the.
George: The discussion to our CFO jewelry to go over the train train four results George over to you.
George: Thank you Craig.
George: Today, I'll walk through our financial highlights for the year and quarter share progress on key metrics and provide insight into how our positioning DXP for sustainable growth in 2025 and beyond.
George: So the 'twenty 'twenty four highlights we achieved double digit area.
George: Cram alluded to that point about six major logo renewals in Q4, which is a very strong indicator of customer satisfaction and product value.
George: Now, hoping to see more of that with the kiosks that Carlin talked about we continue to see strengthening and we continue to strengthen our business model with subscription revenue accounting for 87% of total revenue up from 78% and totaled 23.
George: It helped us drive a gross margin of 82% compared to 78% last year.
George: Net retention rate reached 100% up significantly from 73% in 2023.
George: <unk> reduced churn and expansion within our existing customer base.
Next slide Oh, sorry, we also had an improvement in Opex and Youll see that in throughout all of the comparative slides or we go year over year quarter over quarter and significantly reduced our expenses and will continue throughout the year to look at.
George: Cost efficiency next slide.
George: Yes.
George: So that's sort of Q4, our revenue was 166 million slightly down slightly compared to Q4 of 2023.
George: Gross profit increased to $1 four 3 million and we held operating expenses steady at $4 6 million showing continued fiscal discipline our loss from operations in Q4, with 3.18 million essentially flat versus the same quarter last year, despite higher G&A costs.
George: And the higher G&A costs.
George: Oh Q4 of 2024 as it related to.
George: Salaries and administrative costs related to filings and other operational expenses.
George: Next slide.
George: So this.
George: This slide is exciting because it talks about our full year revenue and although revenue slightly declined year over year are were very committed and engaged excited about just the growth of the company and our pivot away from professional services and non licensee.
George: And our services.
George: So importantly subscription revenue grew 10% year over a year now totaling over $6 $2 million.
George: Clay improved gross profit by 4%, while reducing cost of revenues by 27%, reflecting strong margin discipline, we significantly reduced total operating expenses from $58 million in fiscal year 2023, the $19 6 million in fiscal year 'twenty 'twenty four.
George: 66% improvement mainly driven by.
George: You'll see this impairment of goodwill so for those of you that are following along that CX that story for <unk>.
George: The last few years, you'll remember last year, we had a write down of goodwill and so that one time charge will show up in 2023 and well.
George: Well it will you know well we will have that we will have that target. We don't have that in 2024. So a lot we have a significant improvement and lost it.
George: We talked about this on the last slide, but a little bit more we delivered a 30% improvement in EBITDA year over year.
George: Supported by a 20% reduction in operating expenses. These reflect our focus on profitable growth.
George: Today's for our long term goal.
George: I've, just achieving a positive net income our goal that sherwin, but a goal and maintaining consistent gross margins above 80%.
George: And if you also have been following along in the news in our filings. In addition extension you will have seen that we also.
George: Uh huh.
George: Notice related to additional funding. So I know that's been a question in previous calls about our financial runway.
George: We're very very.
George: We have a strong balance sheet we.
George: Entered into another note we entered into last year.
George: We're very confident that with these two notes and our sustained revenue from existing customers and new customers that we have runway for at least if not beyond a year.
George: So.
George: What what's the kind of I think there's still questions about what are we focusing on and will continue to focus on in our iron ore will continue to focus on.
George: <unk> some of our existing resources.
George: <unk>.
George: Invest in AI, so we want to enhance our AI capabilities for a deeper product stickiness.
George: And we will continue to maintain tight cost discipline, while investing in long term growth.
George: So in closing I just want to say, we're very proud of the progress you made in 2024 all of the transformation. We've got there in 2024 and the strong foundation, we built for 2025, so when I think all of our customers employees and shareholders for their continued support and belief in our mission to re imagine the work.
George: Place for it.
George: Employee.
George: Back over to you Carl.
Carl: Thank you Joy that was great. So I just wanted to get it.
Carl: Reiterated one aspect I think we started the call by talking about that we've completed the transformation of the company in terms of the existing in our business and now when you think about the Sy, one gardot, which as Youll see our <unk> business. It is profitable it is all restructured cleaned up.
Carl: Standard with it with new clients or existing clients, but it is profitable and now we are investing the R&D dollars with Terry's leadership and the new team. We've hired here in Silicon Valley to really focus on agenda. They are so when you think about our business think about a very solid profitable anchor business on the existing our business and now we built.
Carl: We're building this agenda the eye platform, there will be many fall more stronger better as well as scalable and Thats all growth function right. So I'm very proud of the team as George said, both the finance team the engineering teams and the global success teams would be Super and getting all of this done it's been a very challenging.
Carl: For us for the last year, but we got it done and now we're ready for the future.
Carl: As George mentioned with the.
Carl: Healthy balance sheet that we have now the fact that our cost structure is much much better we are now.
Carl: Where do you focus on delivering those grid experienced before employee or for our customers.
Carl: The demanding all of these advanced solutions. So this is why we're adding the additional financing to help support that and we're really being focused on sustainable growth.
Carl: And so it's.
Carl: It's been a very positive year for us. So now let me just close with.
Carl: Kind of summarizing what we talked about.
Carl: We're super excited that we've achieved significant milestones and product delivery to meet our customers' expectations that has resulted in continued growth over the past year, leading to our best financials to date, the amazing innovations from our team with our analytics platform Sky view and the unique sky kiosk position us well for 2025.
Carl: Key to our customer's expectations to provide the best employee experience solution in the market.
Carl: As I started the call or to you is a multibillion dollar problem with our Sky platform, we are leading the industry with a disruptive offering we're leveraging cutting edge AI technology to enhance productivity engagement and efficiency in the enterprise, our new generative capabilities allow us to automate complex workflows and offer our customer intelligence.
Carl: That drive measurable outcomes solving real world problems some of the largest brands in the world in the Fortune 501000 are our clients and we are working with <unk>.
Carl: Partners like Google and others to solve their problems and their commitment to renew and expand with us.
Carl: <unk> as the leader in this emerging market.
Carl: Yeah.
Carl: Finally, I'd like to say, we believe 2025 will be a banner year for the company as we see significant expansion demand from existing customers, who are scaling our products in their footprint as well as new enterprise clients in our target markets.
Carl: With a silicon Valley based technology team and global customer success teams delivering amazing products and experiences today, we are well prepared to deliver on our commitments to shareholders clients and the broader market as the era of agenda Guy for employee experiences is realized.
Carl: We invite stakeholder.
Carl: Stakeholders potential clients and the media to join US in this exciting journey into the future work, we are planning our annual Investor day in May 2025.
Carl: Nearly a month and a half away, where we will be providing further details on our new product offering as well as customer case studies on how sky is shipping where clients employee experiences and we will keep investors updated on the final date and location.
Carl: I just wanted to say I want to thank the investors for supporting us on what to think or our partners and our board members, who have really been helping us get to this level and we're really excited about the future.
Carl: With that I. Thank join I will take a couple of questions that were submitted online.
Carl: And so George do you want to take one of the questions from.
Carl: From the audience.
George: Yeah. So I think somebody asked the question about strategic initiatives inside the partnership's revenue diversification effort is a really good question technological advancements, though I'll speak to some of it in maybe answer a couple of the questions here, but like we mentioned we're going to continue to build.
Carl: Oh my.
Carl: AI capabilities and really focused on investing in the tools that are probably be investing in people.
Carl: So you'll see costs go up there and that's.
Carl: That's that's probably the when you talk about strategic initiatives that so that we'll be doing there we've talked in the past about our partnerships with them.
Carl: Our partner is and will be spending more time or doubling down on that and we you know.
Carl: Have a positive outlook for the company, we are not giving guidance at this moment, but we're very excited about this opportunity and you know just the the market they'll play expand it.
Carl: I think there was one more why wait until earnings suppose update I think you could improve awareness as well as advertising brand on social platform.
Carl: We completely agree and you'll hear more from us I think.
Speaker Change: Carmen now we're talking about it when you are in the thick of it you don't think about it you know Lee.
Speaker Change: At our last earnings call in November So Youre, absolutely right that November to April timeframe is a long time to hear from us, though there'll be hearing a lot more from that we'll be doing a lot leading up to our investor shareholder meeting and in May and we're really excited about that though.
Speaker Change: We'll have to wait.
Speaker Change: We'll have to wait that long kind of are there any other questions or are there any questions yes, Sir.
Speaker Change: Yes, I see a question one question is sky's future challenges what are the biggest opportunities and risks.
Speaker Change: You see in terms of in the next six to 12 months and how are you.
Speaker Change: How are you preparing for them plus what do you see as the competition and where do you stand out in terms of technology and financial growth. It's a great question and you know one of the things I want everybody to know is that we do compete with the largest companies in this space in the sense of when we are working with our <unk>.
Clients. These are large enterprise clients and we worked with the CIO and the fee levels in these companies. So when they have options to choose really large companies. They look at us because we have a differentiation. Our biggest differentiation is like I mentioned, the engaging you or the complexity to simplicity, the insights and the ability to.
Speaker Change: A full stack solution for the enterprise I think it's very hard to find a solution in the market.
Speaker Change: You hear about all the large companies coming into the space, but our clients are staying with us because we provide the localization viewpoint those experiences that are really amazing for them and thats why they are staying with us.
Speaker Change: In terms of risks absolutely there are risks in the market.
Speaker Change: Given but our focus is really that employee experience and the interesting part of our business is that our clients are actually our partners and when I say that is I had a CIO of one of our clients into my office and you said youre not a vendor Europe partner and the reason is because when we deploy the application to our clients. It is like coming from.
Speaker Change: The CIO it as their application and we are the partner that he or she needs for us to be successful. So it's really not one of those deals with the vendor it's actually a partnership filled because they ultimately deploy the sky platform as their own application. It has their logo it has their unique.
Speaker Change: Insights as well as their unique branding. So we are really partners with these clients is a super important for us to be that being their partners here more provide those amazing experiences and the joint customer is the employee the end user right. So this is where it's a very interesting collaboration and once we're done with these large clients they want to scale out they want to go home wanted.
Speaker Change: Two campuses to 100 campuses everywhere, they want and the good news that I can tell you is in all of the customers that have renewed with us in a great we have visibility and adoption at the C level, so the CEO and the CIO or using the app. They find this to be critical to their business to their future and to their employees. So I'm super excited about that.
Speaker Change: There's always going to be competition competition is always great. I think we just have a unique opportunity to be transformational because of the trends I mentioned at the start of the meeting.
Speaker Change: There was another question Joy about can you give us some color on pipeline building year over year or sequential booking growth look we're not going to give guidance, but as I as I mentioned earlier, we have we have these anchor customers, who have large budgets and great campuses globally right. So there's a big scale opportunity.
Speaker Change: We have to demonstrate their capability, we have to demonstrate your adoption. The usage, we're making a lot of progress we're pretty excited about it but once we have the higher adoption, we'll definitely share those but right. Now we are we are getting really good good feedback from them.
Joe: But Joe you want to add anything else to that.
Joe: Yeah, I would just say that sort of as a investments investing.
Joe: Investing in product, we're also investing in sales and marketing and so you'll see more you know you'll see more spin there, but I think we're expecting corresponding revenue, but not guidance, but that's another area of investment first and then great question.
Joe: Okay.
Joe: Great well I really thank everybody for joining the call and listening to US I think we're going to be much more active in the market now we've been spending time.
Joe: Getting the business through the right footprint to the REIT structure building the greater advanced products and I think you will see me enjoy where he woke up in the market now as I said earlier, we will be we will have an investor day in may.
Joe: We will also be out there a couple of investor conferences, we've been asked to come but you will see regular updates from us as we start launching these new products and providing great experiences and we look forward to our next earnings call, which will be up for the Q1 and may timeframe. So thank you everybody and look forward to the follow up here. Thank you.
Joe: Thank you.
Joe: This concludes today's three areas and you may disconnect your lines at this time.
Speaker Change: You for your participation.