Q1 2025 NICE Ltd Earnings Call
Welcome to the Nice conference call discussing first corner, it's right at 25 results and thank you all for holding all participants are present in a listen only mode. Following management's formal presentation instructions will be given for the question and answers.
Speaker Change: As a reminder, this conference is being recorded May 15, 2025, I would now like to turn this call over to Mr. Marty Cohen.
VP of Investor Relations at night.
Speaker Change: Please go ahead.
Speaker Change: Thank you operator with me on the call today are Scott Russell, Chief Executive Officer, and Beth gas Fischer Chief Financial Officer.
Speaker Change: Before we start I'd like to point out that some of the statements made on this call will constitute forward looking statements.
Speaker Change: According to the Safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
Speaker Change: Please be advised that the company's actual results could differ materially from these forward looking statements.
Speaker Change: Additional information regarding the factors that could cause actual results or performance of the company to differ materially is contained in the section.
Speaker Change: Titled Risk factors in item three of the company's 2024 annual report on form 20-F as filed with the Securities and Exchange Commission on March 19 2025.
Speaker Change: During today's call, we will present, a more detailed discussion of first quarter 2025 results and the company's guidance for the second quarter and full year 2025, you.
Speaker Change: You can find our press release as well as pdfs of our financial results a nice a nice its investor relations website.
Speaker Change: Following our comments there'll be an opportunity for your questions.
Speaker Change: Let me remind you that unless otherwise noted on this call we will be commenting on our adjusted results of operations, which differ in certain respects from generally accepted accounting principles as reflected mainly in accounting for share based compensation amortization of acquired intangibles acquisition related and other expenses.
Speaker Change: Amortization of discount on debt and the tax effect of the non-GAAP adjustments.
Speaker Change: The differences between the non-GAAP adjusted results and the equivalent GAAP figures are detailed in today's press release.
Speaker Change: The information in some of our comments discussed on this call may contain forward looking statements that are subject to risks uncertainties and assumptions.
Speaker Change: Before I turn it over to Scott I'd like to remind you that we're hosting our investor day on June 17th in conjunction with our invest with our interactions user conference in Las Vegas.
Speaker Change: E program for analysts and investors will include presentations from nice executives Act.
Speaker Change: <unk> to the innovation pause when you'll see plenty of demos.
Speaker Change: If you haven't received the registration email.
Scott: Please email us at IR at nice Dot Com I'll now turn it over to Scott.
Scott: Thank you Marty and welcome everyone.
Scott: The past four months since joining nice I've had the opportunity to meet many of our stakeholders customers shareholders and employees.
Scott: These conversations have further elevated my confidence and excitement about our future that confidence is demonstrated by our strong start to the.
Scott: In the first quarter, we delivered total revenue of $700 million.
Scott: Underscoring the strength of bad business.
Scott: Cloud revenue rose, 12% year on year to $527 million led by the continued adoption of CX won empower the industry's premier II platform, that's transforming customer experience at scale.
Scott: We also extended our leadership in profitability operating margin expanded by 20 basis points to 35%, reflecting a disciplined execution and ongoing focus of operational efficiency. These.
Scott: This translated into strong bottom line results with earnings per share, reaching $2 and 87 since the high end of our guidance range and a 11% over the prior year.
Scott: Our cash generation remains a core strength with operating cash flow up 12% year over year to $295 million.
Scott: These robust profitability and cash flow not only differentiate us competitively, but also positions us to strategically reinvest in innovation and long term growth.
Scott: Additionally, our strong financial position gives us significant flexibility in capital allocation.
Scott: This was clearly demonstrated by the share repurchase we executed in Q1, the largest quarterly buyback in our company's history, reflecting.
Scott: Reflecting the deep confidence we have in our long term strategy and the value we're creating.
Dennis: Dennis will provide more details in a moment.
Speaker Change: When we last spoke I emphasized the importance of moving quickly you need my voice in my four months at nice that's exactly what we've done well.
Dennis: We're operating at Lightning speed capitalizing on three key drivers.
Speaker Change: Our relentless focus on execution and.
Speaker Change: A great market in which we operate and a deep commitment to ensuring our customers win with I O I and Egencia Guy I in particular.
Speaker Change: Our sharpened focus on execution is already yielding enhanced results. We recently signed the largest CX one empowered deal in our company's history with.
Speaker Change: We secured a landmark agreement with a major European government agency harm to the largest customer service operation in Europe, representing a total contract value exceeding $100 million.
Speaker Change: This marks the second nine figure government agency deal, we closed in less than a year underscoring the scalability and strength of CX, one empower impairing mission critical customer service at scale.
Speaker Change: We successfully displaced a longstanding incumbent and won against several direct competitor is a clear testament to the differentiated value our platform delivers.
Speaker Change: And the execution doesn't stop there.
Speaker Change: As mentioned in our last earnings call, we put an emphasis on strategic partnerships to help drive our future growth.
Speaker Change: Partnerships have always helped us scale, but today, our focus is sharper and our impact these depot.
Speaker Change: With forging high value strategic alliances that deliver real measurable outcomes for our customers and I'm, especially proud to share two new milestone patent ships, which service now and AWS.
Speaker Change: With service now, we're bringing together the front and the back office.
Speaker Change: Never before this integration eliminate silos accelerates resolution and turns disconnected customer journeys into seamless loyalty building experiences all on one unified platform.
Speaker Change: And with AWS, we're taking a partnership to a whole new level.
Speaker Change: Yeah, the way co innovating to embed AI automation and cloud at the core of customer service, helping organizations unlock the full power of the data across every interaction.
Speaker Change: We're also expanding our go to market strategy and I'm pleased to share that CA 20, and power is now live on the IW with marketplace.
Speaker Change: These alliances with more on the horizon.
Speaker Change: Combined with our continued investment in the deep relationships with leading systems integrators is reinforcing our leadership position and our growth accelerators for our customers and panache.
Speaker Change: Our second growth stems from the strength in the tremendous potential of the market that we operate in.
Speaker Change: Our market is undergoing accelerated transformation and AI is the driving force behind it.
Speaker Change: CX goes well beyond efficiently managing contact centers.
Speaker Change: It is becoming evident that the only way to do see X-ray is by delivering AI driven intelligent in the wind workflow orchestration.
Speaker Change: <unk> is redefining how consumers interact with service demanding a new approach that goes beyond the contact center unlocking new use cases, new workflows and new adjacent markets.
Speaker Change: When you include the transition from labor to technology that shift is expanding our total addressable market to more than 330 billion. According to market analysts.
Speaker Change: <unk> is uniquely positioned to lead this change we're not just automating tasks.
Speaker Change: Feeling entire customer intense with precision and intelligence.
Speaker Change: With that category defining innovation deep domain expertise trusted customer relationships and strong financial position, we have built to lead and win in the next chapter of AI driven growth.
Speaker Change: And that brings me to a third key driver.
Speaker Change: Unwavering commitment to helping our customers win with II.
Speaker Change: At the heart of this is CX one empower the industry's most complete AI powered platform for customer experience <unk>.
<unk> won empower it goes beyond interaction management. It is a true AI engine for business execution.
Speaker Change: Alternating into when workflows on any unified intelligent platform with human agents and I O agents work side by side seamlessly connecting data systems and fulfillment in real time.
Speaker Change: This is more of an automation. It is the rise of intelligent agents that can reason decide and act independently to draw foster outcomes and better experiences.
Speaker Change: We're not only with no longer only orchestrating interactions with automating intent to resolution with Egencia chaos embedded across the entire service journey.
Speaker Change: This evolution is unlocking entirely new revenue streams dramatically expanding the value, we deliver and further separating north from the rest of the market.
Speaker Change: Customers are recognizing our competitive differentiation when it comes to CX II as witnessed by the strong CX won empower II results in Q1 six one Impella was included in 100% of our new Impala deals over $1 million in ICB.
Speaker Change: We recently you won't see it as one empower orchestrator.
Speaker Change: This new solution seamlessly integrates AI driven insights third party applications and enterprise wide workflows into a unified and automated framework.
Speaker Change: This groundbreaking solution has an nice top honors being named overall best of enterprise connect 2025 and recognized but the most innovative use of AI at enterprise connect both awards celebrating the power of CX, one empower orchestrator.
Speaker Change: We are at a transformative moment in the evolution of <unk> to unlock its potential organizations must move beyond outdated fragmented point solutions, which have historically led to disjointed and frustrating customer experiences.
Speaker Change: As <unk> adoption accelerates its more important than ever to implement it on a unified single platform, where AI can elevate consistency and enhance brand reputation.
Speaker Change: This is another reason why our unified AI powered platform seeks one empower is fundamental to provide exceptional customer experiences.
Speaker Change: We continue to see an increasing number of large enterprises consolidated consolidating disparate solutions onto <unk> won empower.
Speaker Change: The evidence of this is in the growth of air ICD and our portfolio deals.
Speaker Change: Defined as consolidations of three or more than the point solutions onto seeks one empower in Q1, the <unk> of our portfolio deals grew by 26% compared to Q1 last sheet.
Speaker Change: Sandy out example of this is a seven figure deal with a fortune 100 global sportswear company by.
Speaker Change: By unifying multiple CX point solutions on CX, one empower their reducing operational complexity through workflow automation, while providing outstanding experiences for their consumers with.
Speaker Change: With CX, one empowered they can seamlessly deploy AI across their customer service operation.
Speaker Change: In a similar seven figure win with a leading nonprofit health and well being organization, we replace solutions from four separate vendors onto CX one empower.
Speaker Change: We secured a significant seven figure <unk> deal with a leading financial services organization by delivering AI powered solutions the client required to support their continued growth and elevate agent productivity.
Speaker Change: And another seven digit <unk> deal an existing customer a leading bank on the west coast.
Speaker Change: Is deepening its investment in CX, one empower by adding advanced AI automation enhancing self service capabilities unifying operations on a single platform and driving greater ROI across the organization.
Speaker Change: Our Premier service provider and the life Sciences industry selected nice in a significant seven figure deal. We won the deal without market, leading AI road map and proven impact of our AI powered self service solutions.
Speaker Change: Beyond these headlines the quarters saw a wave of additional leading companies including gapping.
Speaker Change: Lloyds banking group and Hunter Douglas choosing to partner with nice underscoring the strong confidence the market has an air solutions.
Speaker Change: And there are there are many more marquee customers from which you will hear inspiring stories at interactions in June.
Speaker Change: You'll also receive exciting updates that re imagined the world of customer experience with nice at the center, you'll see groundbreaking AI solutions purpose built and powered by the intelligence of CX one empower.
Beth: I'll now turn the call over to Beth.
Beth: Scott I'm pleased to report a strong start to the year, reflecting solid execution across the board revenue in Q1 with $700 million, increasing 6% year over year, driven by 12% growth in our cloud revenue, which totaled $526 million and now represents a record 75% of our total revenue.
Beth: Our cloud revenue growth was predominantly driven by the growing adoption of our CX, one empower platform, namely from our customer service AI solutions, such as auto pilot copilot and proactive AI agents.
Beth: As part of our ongoing commitment to enhance transparency and provide greater insight into our cloud business I'm excited to announce that we are introducing two new cloud metrics. The first is our CX AI and self service cloud revenue and the second is net revenue retention of our overall cloud revenue base.
Beth: In the first quarter, our CX AI and self service solutions annual recurring revenue exceeded $200 million that increased an impressive 39% year over year. The strong momentum of empower AI is clear and demonstrates the successful delivery of our growth strategy.
Beth: Our business has transitioned from a contact center offering to become the end to end cloud platform of choice for organizations to manage both the external experience of the consumer while fulfilling the internal processes to fully complete and operationalize the customer experience journey.
Beth: With the introduction of new strategic partnerships, we expect empower AI to gain even further momentum as these relationships gained traction.
Beth: Our cloud and our our represents the percentage of revenue retained from our existing customer base over the last 12 months, including expansion revenue from existing products Upselling and cross selling.
Beth: Our cloud in our or in the first quarter with 111% this healthy NR or demonstrates the health and positive customer satisfaction of our customer base in the cloud and the breadth of our offering.
Beth: Moving to our premise based revenues services and products revenue performed as expected this quarter service revenue, which represented 5% of our total revenue declined 6% product revenue, which represented the remaining 5% of our total revenue declined 20%. We are pleased with the pace of the ongoing income.
Beth: <unk> of our cloud revenue to the record 75% composition of total revenue achieved this quarter the shift to cloud reflects the ongoing broader market trend of increasing transformation from outdated legacy premise software to the cloud we continue to prioritize cloudburst, Felicia and incentivize our customers.
Beth: <unk> and sales organization to drive adoption of our cloud and AI offerings.
Beth: From a geographic breakdown, the Americas region, which represented 84% of total revenue in Q1 grew 6% year over year, a strong cloud revenue growth was partially offset by a decrease in on premises related revenue.
Beth: The EMEA and APAC regions, which represented 11% and 5% of our total revenue, respectively increased 10% and 9% year over year, respectively, driven by strong cloud revenue growth in those regions.
Beth: While international revenue remains a smaller portion of our overall business. We continue to see a steady shift towards cloud adoption across global markets. This quarter, we reached an important milestone with 50% of international revenue now coming from cloud solutions, driven by the strength of our go to market strategy.
Beth: Our expanding global presence and the deep partnerships, we've cultivated to accelerate adoption worldwide.
Beth: Moreover, at 50% these less penetrated international markets provide a great growth opportunity for us to continue to drive cloud growth.
Beth: Turning to our business segments customer engagement revenue, which represented 85% of our total revenue in the quarter was $592 million, increasing 7% year over year, driven by the strong growth in our cloud business in all geographies, which offset the continued transition of our premise based business.
Beth: Revenues from crime financial crime, and compliance, which represented 15% of our total revenue in Q1 and totaled 108 million met our.
Beth: Spectation, we delivered robust cloud revenue growth in the quarter consistent with our customer engagement business segments, our strategy and FCC is cloud first we expect our full year FCC revenue it should be flat to modest declines in 2025 as we it's further accelerate our intent to shift this market segment to the cloud.
Beth: Moving to profitability. Our total gross margin was 69, 9% compared to 79% last year, a slight decline primarily due to a decrease in higher margin on premise based revenue recognized in the prior year.
Beth: Our gross margin totally unexpected 69, 4% in Q1 during the quarter, we invested heavily in Onboarding, new and incremental service partner capacity to drive faster time to revenue from our cloud business. In addition, we continued to make strategic investments in expanding and scaling our cloud offerings internationally.
Beth: Our operating income in Q1 increased 7% year over year to $214 million and our healthy operating margin expanded 20 basis points year over year to 35%.
Beth: With Scott clear focus on driving long term sustained growth in the cloud we have already prioritize the key areas of focus spend additional R&D talent to continue to drive our AI innovation expansion of our external service partners to drive faster core cloud adoption and the creation of new centers of excellence to optimize full.
Beth: <unk> of our platform capabilities by our customers.
Beth: Our continued prudent management of profitable growth has succeeded in our ability to confidently and these growth investments to yield higher future revenue growth, while maintaining a healthy operating profile.
Beth: Earnings per share for the first quarter were $2 87, an 11% increase compared to last year, our cash flow from operations in Q1 delivered another exceptional performance this quarter, reaching an all time high of $285 million and surpassing the previous record set just last quarter.
Beth: Our free cash flow with 264 million, increasing 16% year over year, and yielding outstanding 38% free cash flow margin.
Beth: Our conviction in the strength of our business and the opportunities ahead was demonstrated by our largest ever share quarterly buyback in Q1, which underscores our confidence in our market position long term strategy and ability to drive sustained value for our shareholders, we repurchased shares for.
Beth: And all time record high totaling $252 million, we have already executed more than 70% of our current $500 million buyback program.
Beth: Knowing the accelerated buyback in the first quarter, we are proud and pleased to announce the interdiction introduction of a new $500 million buyback program that we will begin implementing following completion of the current plant.
Beth: Total cash and investments at the end of March totaled $1 billion and $611 million, our debt stands at $459 million, resulting in net cash and investments of $1 2 billion our debt matures in mid September of this year at this time, our expectation is still to repay the debt at maturity.
Beth: Before I close with guidance and in conclusion, we are pleased with the strong start to the year. This momentum reflects the continued strength of our business and disciplined execution, but we view. This is just the beginning we are continuing to grow our team at night and forging new strategic partnerships to fuel ongoing growth.
Beth: <unk> and our AI innovation and strategic go to market strategy will begin to yield impact towards the end of this year and into 2026 business unit as well to further expand our leadership in this market.
Beth: Main confident in our strategy and our ability to drive long term value for our customers and shareholders.
Beth: Look forward to seeing you at our upcoming Investor day, where we plan to share some exciting details of recent wins and new AI innovation launches in our CX London power platform.
Beth: Now I'll close with our guidance for total revenue and non-GAAP EPS for the second quarter and full year 2025.
Beth: For the second quarter of 2025, we expect total revenue to be in the range of $709 million from 700.
Beth: $19 million, representing 7% year over year growth at the midpoint, we expect the second quarter 2025 fully diluted earnings per share to be in a range of $2 93 to $3 <unk>, representing 13% year over year growth at the midpoint.
Beth: For the full year, we are reaffirming our prior revenue guidance, while we do not anticipate a significant macro level impact at this time, we will continue to monitor the situation and update as the year progresses.
Beth: Full year 2025 total revenue is expected to be in a range of $2 billion and $918 million to $2 billion and $938 million, which represents an increase of 7% at the midpoint. We continue to expect our non-GAAP operating margin to increase an estimated 50 basis points year over year, we are.
Beth: Raising the full year 2025, non-GAAP fully diluted earnings per share guidance, which is now expected to be in a range of $12 28 to $12 48, which represents an increase of 11% at the midpoint I will now turn the call over to the operator for questions operator.
Beth: Okay.
Speaker Change: At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
Speaker Change: We'll pause for just a moment to compile the Q&A roster.
Meta Marshall: The first question comes from meta Marshall from Morgan Stanley. Your line is open.
Meta Marshall: Great. Thanks.
Speaker Change: A couple of questions just maybe first.
Speaker Change: So you can kind of on a quarter on quarter stepped down in the cloud revenue just kind of biggest reasons for that you guys haven't traditionally had a lot of seasonality yourself, there's just kind of more seasonality coming into the business that'd be helpful.
Speaker Change: <unk>.
Speaker Change: Determined and then second just.
Speaker Change: On the strategic partnerships and kind of the expansion of those when would you expect for those to start to show more dividends.
Thanks for the question Nida, I think I'll start off with your question and hand, it over to Scott in terms of the quarter on quarter stepped down readdress that coming into the year. Our cloud revenue was in line with our expectations in the first quarter, increasing up to 12, 4% year over year growth and the.
Speaker Change: Key reasons really for that change as we had highlighted last quarter, where we saw some <unk>.
Speaker Change: Stronger than what we've typically seen seasonality that occurred in the fourth quarter.
Speaker Change: We correctly anticipated would not come into the first quarter and that really comes from a few key verticals that have some I would say very strong seasonality in Q4 that includes some of our.
Speaker Change: Retail.
Speaker Change: Customer base as well as some of our health care and insurance related customers. So as I highlighted it was as expected and we're pleased with the cloud performance in the first quarter and with that I'll hand, it over to Scott to address the second part hey, Thanks Beth.
Speaker Change: So a couple of comments on the strategic partnerships first of all these partnerships are really important and they're already getting feedback from customers literally as soon as we announced because customers are very clear that they have a landscape of different technology providers and they want to be a unified solution. So.
Speaker Change: We're already receiving questions understanding roadmap and secondly, the partnerships are both product related innovation related angles. So go to market as well so.
Speaker Change: On the product work Theres, obviously, some work that we're doing to be out to build out those roadmap and that is already under way.
Speaker Change: What I expect to see is those customer conversations tuning into growth opportunities for both ourselves and our key partners.
Speaker Change: We're able to bring a unified solution to our customers I'd also just like to highlight as I mentioned in my opening we're not.
Speaker Change: Limited, where there is more to come.
Speaker Change: Really clear that these strategic partnerships each providing unique value.
Speaker Change: <unk> enhances our.
Speaker Change: Our differentiation, but also in Haynesville you did the customers. So they can get unlock more benefits for them, So and we'll see that come in the coming quarters.
Speaker Change: Great. Thank you.
Speaker Change: The next question comes from Tyler Radke from Citi. Your line is open.
Speaker Change: Good morning, Thank you for taking the questions and I appreciate the incremental disclosure on the IRR for the CX AI and self service as well as the the cloud NRI.
Speaker Change: As we think about that AI and.
Speaker Change: Empower self service.
Speaker Change: For customers that you see adopting that solution can you just help us understand is that all incremental spend are you starting to see any cans.
Speaker Change: Cannibalization is kind of the core non AI spend whether that's that's fewer seats just help us understand how additive that.
Speaker Change: It is and then it sounded like you were optimistic that potentially the growth of that could accelerate or the momentum pick up in the later part of the year just as you see kind of more partnership leverage if you could just double click on that as well.
Sure I can do so.
Speaker Change: So a couple of thoughts on this first of all.
Speaker Change: On the seat based revenue, we're not seeing any.
Speaker Change: Material change any different sale, which which is positive.
Speaker Change: The AI based UC <unk> is largely incremental and it's interesting how customers are deploying many of our stock.
Speaker Change: There was sort of investing in their leading with the AI capabilities to be able to drive it be able to then deliver more efficiency more value more insights better customer service.
Speaker Change: Some are driving toward Imation I mentioned on the call on my opening about disparate point solutions unified together.
Speaker Change: So we are confident as both of our innovation roadmap continues to build out.
Speaker Change: Nearly exclusively on the iOS side together with the unit base. It will both enhance the usage of our existing platform capabilities, which is deployed at scale with the largest provider at the contact centers.
Speaker Change: It'll enhance that but also discrete solutions there are incremental you.
Speaker Change: You mentioned about the partnerships, what's really important about the partnerships is it helps us fulfill the AI innovation, that's happening with our technology partners and their innovation embedded on our platform ultimately that means customer service will be more automated more integrated in the workflow.
Speaker Change: From the customer.
Speaker Change: Contact all the way through to fulfilling their task and leveraging the innovations that our partners bring that we can put into our platform. So yeah, I'm I'm excited and optimistic about the potential it brings and I think we'll see that continue to be.
Speaker Change: A transition as they deploy it at scale using AI.
Speaker Change: We'll obviously see how that then affects the seat based but right now there is.
Speaker Change: On the Incrementals.
Speaker Change: Thanks.
Speaker Change: Just a quick follow up on the partnerships you announced.
Speaker Change: <unk> partnership with service now recently added the knowledge conference one of the questions that we often get from investors is just how to think about where the nice orchestration.
Speaker Change: <unk> kind of Agentic AI and.
Speaker Change: And vice versa for service now both both companies have.
Speaker Change: AI workflow orchestration products.
Speaker Change: But where is kind of that overlap. If there is any and has that become any clear in your mind with customers just post the partnership announcements.
Speaker Change: Yes, it's a great question and in our customers often ask the same thing. So first of all our partnership Leverages. The core deep strengths that we have in our case, we understand we know customer service best we understand the interactions the intent we know what consumers need when they need it.
Speaker Change: Why are they needed how they need it we know which channel we have the deepest knowledge of the industry unique insights and niche between each of the industry. So our egencia Guy I very much is around what that <unk>, how do we fulfill it and then trying to orchestrate that with knowledge with workflow.
Speaker Change: And with that service.
Speaker Change: Service now clearly bring.
Speaker Change: The unified in Duane workflows of the enterprise and being able to connect the front and the back office and helping our platform leveraging this so the synergy the overlap is very minimal the advantages our platform, whether it's a human agent or an I O agent connecting with their <unk>.
Speaker Change: System their AI platform to be able to fulfill those needs of consumers at the point of interaction and that's the exciting part because we're able to bring not only efficiency, but a higher and better customer experience for consumers.
Speaker Change: Yes.
Speaker Change: Thank you.
Speaker Change: The next question comes from Michael Funk from Bank of America. Your line is open.
Speaker Change: Yes. Thank you. Thank you for the questions. This morning.
Speaker Change: Going back to the to the AI question, Andy I think Nitro strategy, it's been slightly different given the.
Speaker Change: The amount of investment <unk> made in AI.
Speaker Change: Over the years and so first of all just thinking about.
Speaker Change: How that differentiates your AI strategy.
Speaker Change: And how what's driving maybe some of the deals and then and then related.
Speaker Change: How these new partnerships might enhance or accelerate development of AI, whether it's access to data.
Speaker Change: Expertise partners might have that you don't.
Speaker Change: Love to get a better feel for that.
Mark: So the investments you're right Mark.
Speaker Change: Mark will be investments there.
Speaker Change: That noise is put in I really does set us up well. So if you think about the thousands of foundational models, what we builds on our <unk> platform and <unk>. We've been we're really really strong at both the data the intent data that 15 billion interactions and understanding what consumers need.
Speaker Change: And being able to then.
Speaker Change: Respond and have a great customer service experience that is an incredibly important foundation because no one else really has that capability and it's a prerequisite for us to move into and expand into orchestration from maintained to fulfillment orchestrating workflows.
Speaker Change: We know what task needs to be done and we know it at finite detail by industry.
Speaker Change: And by geography, so it's a really important prerequisite and its the foundation then you go forward and you think about our investments and Youll hear more about this at interactions. The Egencia gives us the ability to be able to then automate through self service like never before but actually do task completion, because the key.
Speaker Change: With NII agent is to be able to deliver what a human agent would have done and so with that knowledge in our workflow all in that one platform. It becomes a really critical but I think the most important part is the coexistence and what we're seeing from customers is this.
Speaker Change: I might use a self service platform to do a couple of use cases and they use their contact center to manage their agents, but the co existence from a consumer standpoint, they want the knowledge the dye to the workflow to be able to inter operate in a seamless manner.
Speaker Change: They've got a Frank can stack out there right now they've used different point solutions and so we are seeing significant demand where they want to consolidate onto our platform.
Speaker Change: That is able to orchestrate that interaction experience with the consumer and we're best placed.
Speaker Change: Now that then leads to the partnerships.
Speaker Change: Partnerships give us an extended and Duane capability that goes beyond the interaction as we go deeper. So for example, with AWS Azure or AWS partnerships. They have the insights and the access to all the data that sits into the enterprise all of the systems of record all of the flows.
Speaker Change: Through their AI platform. We can then we use that knowledge in our CX millennium power platform and we can automate that something we've never really been able to unlock before if you take service now theyre orchestration of in the win workflows is superb and what that means for us is that as we connect to the platform.
Speaker Change: Again, whether it be assuming or an I O agent. We can then fulfill tasks with consumers why foster way more effective than we've ever been able to achieve so it opens up the power and the value that we can bring to our customers from an automation and also from a consumer's experience.
Speaker Change: And we're really excited about it because it brings the best of both and I think you'll find that deep knowledge in CX. It is critically important which is why we don't see any overlap in these partnerships. It really is complementary.
Speaker Change: And then ill bite with one more quick question.
Speaker Change: The recent news coming out that cleared which had lean very heavily into replacing humans with AI is now backtracking in part right, saying, they actually went and backfill it had more human agents because AI was not satisfactory.
Speaker Change: Are you hearing similar comments from customers I'm thinking about adopting AI and I know you're more of a co pilot model or alongside the human model and then how do you interpret those comments and what it means maybe four for nice in your own opportunity.
Speaker Change: Yeah. So look a couple of comments the first piece.
Speaker Change: <unk> truly believe that I O agents will be able to deliver a significant amount of what happens in customer service over time. We are we are investing in it were building. It we're partnering in it and we think we can fulfill it but most customers.
Speaker Change: A clear that their customer engagement.
Speaker Change: Is critical you think about the market right now there's a lot of uncertainty consumers are interacting with their the enterprise with a companies more than ever and often it's about knowledge or insights or wanting to get information. So the coexistence of a human NII is really important so what.
Speaker Change: We see for the majority of customers is they're not going to turn off the contact center tomorrow, but what they are doing is they are building that self service. We've got auto pilot, which is a significant draws.
Speaker Change: Gross driver to it.
Speaker Change: A self service ability for consumers to interact but when it doesn't quite fulfill the task order is a more complex question, let's face it as humans, we have we have a spontaneous needs and questions and want them and so when it does that you have to have the ability to then switch and interact.
Speaker Change: With a human agent and then maybe go back to why are our platform brings that natively out of the box what happens to these companies is if they've got all these other point solutions. They have to put the connective tissue together and it's really really hard so the power of the platform to be able to manage that coexistence as silk.
Speaker Change: Service increases and scales I think he is going to be hugely.
Speaker Change: It's a huge differentiator for us and frankly most customers.
Speaker Change: You know are demanding that need and they look to us.
Speaker Change: As a part of their their platform requirement.
Speaker Change: That was great. Thank you for the time and your comments.
Speaker Change: The next question comes from Arjun Bhatia from William Blair. Your line is open.
Speaker Change: Perfect. Thank you so much.
Speaker Change: Could you.
Speaker Change: I'll, just touch a little bit on some of the delays that we saw last quarter in terms of getting large customers deployed I'm curious if that's.
Speaker Change: Improved at all and maybe the operational changes that you've made or are making to help help help remedy that this quarter and going forward.
Speaker Change: Okay. Thanks for the question Arjun I'll I'll I'll start with that one I think right out of the gate. This year, we've made some additional investments in capacity around the services organization and driving those large scale enterprise.
Speaker Change: Deployments faster, both internal as well as partnering with them additional services providers and that's something we're going to continue to do as part of our focus around strategic partnerships.
Speaker Change: I'm pleased to report that of course already we are seeing some nice.
Speaker Change: Movement I think it's important to highlight that it's large enterprise players you should expect a longer.
Speaker Change: Deployment cycle relative to more of the SMB space. However, we are already seeing advancement is going to continue to be a focus for us looking ahead as well.
Speaker Change: Okay.
Speaker Change: Got it and then.
Speaker Change: One for Scott on autopilot.
Speaker Change: How comfortable are customers.
Speaker Change: Unleashing AI.
Speaker Change: Their customers through.
Speaker Change: Agents are you seeing that just as more enterprises become more familiar with AI, they're starting to do this more and more is there still some sort of hesitancy to say hey, maybe we don't have the data we don't have the right context.
Speaker Change: The agents are grounded enough I'm curious, where we are actually in that process right now.
Speaker Change: Yes, it's a great question, because you differently see differences by industry, even differences by geography on the speed of adoption. There is no doubt that our R. R.
Speaker Change: All I pilot platform already can deliver significant amount of self service with the knowledge that we have in the platform let alone what we bring through these partnerships.
Speaker Change: And so the adoption curve some are quite aggressive there, they're very optimistic about the potential and it's usually driven more from an automation standpoint, what we're seeing is it's now even more important from the customer engagement they want to be able to answer queries to be able to solve those ing taints really quickly NII.
Speaker Change: <unk> platform allows them to do that so.
Speaker Change: The the role that he is very much about the the risk base and the driving forces. If it's an ROI based usually it's more about the automation side. If it's in enhancing the customer usually co pilot is the first area, where that you use and then a progressive rollout autopilot. So it really does vary by.
Speaker Change: <unk>.
Speaker Change: What I would say is this.
Speaker Change: The acceptance across the customer bases Universal <unk> II will be named French part of customer experience that there is no debate.
Speaker Change: They will be.
Speaker Change: Leaders in lag odds in terms of the adoption curve, but no. One is saying we're not going to do it in fact more of the point is they work with us on how they can utilize the platform and its exciting because you look at our roadmap more and more of our roadmap is about a click and use so turning it on so we're no longer as constrained.
Speaker Change: The time to roll that per the previous question, it's going to be more and more of that being able to use and consume and progressively deploy that so I'm optimistic that the growth will come and I do think as customers become more comfortable we're already seeing with existing customers. They are expanding their usage, which.
Speaker Change: As to the guidance on the revenue that we gave earlier the expansion of usage when they first deployed more and more use cases, we're seeing that as a part of their customer base. So it gives us confidence about the.
The future rollout.
Speaker Change: Wonderful thank you.
Speaker Change: The next question comes from <unk> from Mizuho. Your line is open.
Speaker Change: Thanks for taking my question and congratulation on one of the largest two Atlanta figure deal.
Speaker Change: And so you guys had a few deals last year to this mega deals. So I'm wondering what's your expectation in terms of revenue contribution from those deals and in that what gives you the confidence or deliver 12% cloud growth this year.
Speaker Change: You still expect that growth with some girl.
Yeah. Thanks for the question.
Speaker Change: A couple of things I think first of all we're really excited about the traction we're seeing internationally and are in our CX business. As you highlighted this is now the second extremely large scale.
Speaker Change: Signed are in less than 12 months, if we look back to the.
Speaker Change: The one that we announced last year.
Speaker Change: That is just now starting to gradually come into their revenue in the course of Q2, So we'll start to see that contribution reflected.
Speaker Change: The current and upcoming quarter with Q2 and of course that will continue to gradually expand as they expand the adoption of the platform over time, but we'll start to see that happening with the new extremely large deal that we just signed and we're really excited about out of the European region.
Speaker Change: That is another extremely large deal for us we expect that you will like to see that probably starting to come into the revenue and in early 2026. So you won't see revenue contribution from that this year you should expect early 2026.
Speaker Change: And do you still expect 12% growth.
Speaker Change: On the cloud side.
Speaker Change: Okay.
Speaker Change: On the 12% growth.
Speaker Change: We have confidence both in looking at the.
Speaker Change: The usage, we are seeing and our customers.
Speaker Change: We're not seeing any impact from macro in any way. We're also looking at a large portion of our revenue is already set as we commented a year so strong existing IRR as well as our backlog that we have coming into the year. So a combination of all of those factors get there's been quite a bit of confidence.
Speaker Change: Looking forward for the rest of the year to be able to achieve 12% or more.
Speaker Change: That's great and then one quick follow up with your cloud gross margin was slightly below what are the factors impacting the cloud gross margin how should we think about that.
Speaker Change: I commented a little bit about that last quarter that both the cloud gross margin and the overall margin. This year, we expect to be really flattish throughout the course of the year is expected and for the cloud specifically is coming from really a couple of different factors. The first is around the services that I highlighted.
Speaker Change: Our ramping up some of the capacity for the partners and that is driving through some of that services deployment that is capitalized in the cloud revenues. So we have a match in terms of some of the.
Speaker Change: The third party services vendors in that and in addition, we are.
Speaker Change: We're seeing this great growth internationally, and Thats, where were seeing investments. So we're also putting in infrastructure that flows through the cost of cloud line as we build up a lot of our slides sovereign cloud deployments internationally. So it's coming from a combination of those two and as I highlighted you should expect more of that as we're investing for growth.
Speaker Change: During the course of this year.
Speaker Change: Great appreciate the color. Thank you.
Speaker Change: Okay.
Speaker Change: Just a quick reminder, we ask that you. Please limit your question to one. Thank you. So much. The next question comes from James Fish from Piper Sandler Your line is open.
James Fish: Hey, guys I appreciate the question here.
James Fish: No. It's a small part of your business, but you guys acquired Lightbox, which was highly exposed to sort of loans with payments starting to resume is that what's driving some of the confidence on the usage side underneath those collection agencies are starting to ramp and pick back up.
James Fish: How to think about that business and then just as my follow up because I'm. The only one getting one question currently.
James Fish: Billings grew about I'm, sorry about that.
James Fish: Everybody if you need to ask a follow up question. Yes, you can ask a follow up question sorry about that all right I'll, let you answer that one first.
Speaker Change: Yes, that's a terrific. Thanks for the question Jim I think let's start out with the question you had with respect to live ops So for live ops.
Speaker Change: Coming into the year actually the live ops growth is a bit of a headwind to our business overall and to your point I think with the changing in the macro there is certainly some opportunity as companies given the overall environment and we're focused around credit. So I think there is some potential to us to really optimize that opera.
Speaker Change: <unk> for US we are seeing it sometimes also with with other verticals.
Speaker Change: Wherefore other organizations maybe.
Speaker Change: Maybe it's a risk and there are certain verticals for us in all our US government as an example, where sometimes we have upside opportunity just given the criticality of the nature of our platforms.
Speaker Change: Got it and just working off of <unk> question really a follow up.
Speaker Change: Billings actually grew about 9% in your Dsos climate again can you just talk about linearity in the quarter and whether youre seeing any sort of.
Speaker Change: Push out.
Speaker Change: Of timing in terms of closing some of these deals still and when we should start to expect to see enterprises really start moving their business over to the cloud because it seems like we've been on part of it the way the last couple of years here. Thanks, guys.
Speaker Change: So maybe I'll cover the I'll cover the question around the pace of the enterprise deals and when we can start to see that so look there's no doubt that in first quarter there was.
Speaker Change: There was a level of uncertainty for a period of time that I think on the macroeconomic side that.
Speaker Change: But we also but we're not seeing any any significant impact of that or any impact of that really in terms of our about both their pipeline, which is at record levels as well as our outlook in terms of the deals I think what what so we do have confidence that as we move forward and as reflected in the what I just.
Speaker Change: Scribed in some of those landmark wins that we've got we've.
Speaker Change: We've got the confidence that enterprises are investing in CX as I differentiate our platform. They see the automation opportunity Theyre excited about I I. It's obviously one of the most logical most understood use cases theyre also in an environment, where the interaction and consumer retention.
Speaker Change: <unk> can change you there the NPS their engagement with their customers becomes even more critical because in market.
Speaker Change: Tom Jim uncertainty so it's interesting in some of our our pipeline we've seen some customers look to accelerate because they wanted to make sure that they've got a platform that can keita.
Speaker Change: And fulfill their customers even better than what they've done before so it's interesting how it becomes a bit of a driver for rosin with quite resilient in that way. So look I'm I'm I'm very confident that as we look forward to customers' willingness to then move to the enterprises move to a to do these larger transformations live.
Speaker Change: Bridging the AI, but also just driving a better consumer experience.
Speaker Change: Don't see any negative impact that and based on the just add with respect to kind of what you're asking around DSO and billings I think generally in our first of all I'll remind everyone that we.
Speaker Change: We are on our CX side of our business what do you do billing in arrears. So first of all you see that coming into the DSO that we report are regularly.
Speaker Change: But also of course as we are dealing with large enterprise customers first of all we have great credit creditworthiness, if I look at our customer base broadly nice it's one of the things I think stands out about the overall health of who we're doing business with.
Speaker Change: Organizations and so the DSO, sometimes is going to be impacted by timing of collections, but we had a great cash quarter.
Speaker Change: Q1, and again I think our overall balance sheet is reflective of the health of the companies that we're dealing with is as our customers.
Speaker Change: Operator next person.
Speaker Change: The next question comes from Samad Samana from Jefferies. Your line is open.
Hi, good morning, Thank you.
Speaker Change: Maybe first just thinking about the 111% and our armed with cloud and one you in kind of that north of 12% growth.
Speaker Change: It sounds like most of the growth in the quarter came from the install base I'm just wondering how we should think about those two components as the year progresses, what's embedded in 12 years.
Speaker Change: Good outlook between at IRR.
Speaker Change: With existing customers and then any revenue from new customers.
Speaker Change: Yes. Thanks for the question <unk>. So the first thing I would highlight as entre.
Speaker Change: Introduced in our or for the first time.
Speaker Change: Quarterly basis, it's important to highlight that that NR is built on a trailing 12 months. So you have to take that into consideration when youre thinking about the breakdown of the existing revenue concentration that's built into our guidance relative to the new logos and as I highlighted earlier on the call when we step into the year.
Speaker Change: Broad portion of our revenue is already baked right. We have a strong recurring revenue we're stepping into the year that we've already addressed the seasonality that we highlighted in the fourth quarter. So a big portion of our revenue is coming from that existing customer base. Both in the existing revenue stream along with the backlog of deals that they've already.
Speaker Change: Executed last year, and again more and more of those customers of course are those large enterprise customers wherever it gradually adding the revenue every quarter as well as expanding it as a further adopted the platform. So that's really what we're thinking.
Speaker Change: Highlighted as well last quarter, which we haven't changed our outlook on is that you know.
Speaker Change: As we look towards the end of Q4. This year, we had stripped out some of the seasonality of course that we haven't seen them.
Speaker Change: In Q4 of last year. So we do believe that as we go into the latter half of this year there could be some upside from a seasonality perspective on that as well.
Speaker Change: Great. Thank you and then Scott.
Speaker Change: <unk> been there for several months and it's still early in your tenure, but as you think about.
Speaker Change: The growth versus margin expansion framework and as you think about some of the opportunities ahead should we look at the maintaining the 50 basis points.
Speaker Change: Maybe incremental upside for now goes into growth investments or just.
Speaker Change: And what you've seen so far how are you thinking about that.
Speaker Change: Okay.
Speaker Change: Yeah, Great question, So I'll.
Speaker Change: So first of all it has been.
Speaker Change: Four months feels a while longer than that I feel very much a part of the north family for a long period of time, which is which is great and I am very proud of of the.
Speaker Change: The execution speed on many of the things and I'll, just allude to what Beth mentioned earlier around.
Speaker Change: The margin and the fact that we're investing in the services capabilities are centers of excellence being able to drive accelerated revenue adoption as well as.
Speaker Change: And increased investment.
Speaker Change: In our and our AI capabilities as we look to be able to capitalize and be able to then differentiate ourselves in the market. So we were fast to move fast to executing you can see that so that's why we've guided on the full year.
Speaker Change: That's a slight improvement on margin because I really do believe that to win in this market we need to use all of the levers available to us organic investment into the differentiating capabilities speed of adoption for our customers partnerships as well as the strength that we have to be able to look.
Speaker Change: At other leave us on an inorganic basis, but all under long term growth for our business and driving shareholder value. So.
Speaker Change: I think we guided correctly, but.
Speaker Change: We're clearly looking to be able to accelerate so we are not only differentiate but we can create more value from existing customers, but then win over more and more new logos like the one in Europe, which are.
Speaker Change: On the game changing for our customer, but also really enhance our capabilities to be the premier platform.
Speaker Change: Great. Thank you so much.
Speaker Change: The next question comes from Patrick will resins from citizens. Your line is open.
Nick: Good morning, and thank you for taking my question. This is Nick on for Pat.
Speaker Change: If you look at something like summarizing contact center customer service sessions, who has the right to deliver the service like if you look at a lot of big enterprises that use Salesforce service cloud, but then there's also a <unk> player like nice so the ROI on summarizing the call are providing basic knowledge management is off the charts why does nice have the right to.
Nick: When there.
Speaker Change: Yes, it's actually it's really simple.
Speaker Change: The interaction with the consumer.
Speaker Change: That interaction that critical first contact no matter what channel that goes through no matter what.
Speaker Change: Other technologies used on fulfillment that first interaction.
Speaker Change: And the knowledge of what they want when they want we know all of it at depth industry deep with foundational models to be able to resolve that and then workflows to orchestrate.
Speaker Change: The resolution or the fulfillment of the asks that stops with us that is a point that is unavoidable and more importantly, the reason why enterprises keep coming to nice is that platform of interaction is because they don't want disparate solutions in the interaction.
Speaker Change: The consumers that's what drives frustration.
Speaker Change: Don't want different technologies I'd want a unified platform and then with that partnership I mean, we work for example, with sales force and their service cloud capabilities, we have more interactions with their platform than anybody else and we've been doing that for many many years. So this isn't a case of it.
Speaker Change: Either us or other this is about using the strengths of where the players our deepest and I do I'm.
Speaker Change: Firmly of the view that.
Speaker Change: As the CX leader that not only provides the points of differentiation of the platform of interaction, but our opportunity is there to do the fulfillment all fab platform better than we've ever done before which and Thats what <unk> brings for us. So you don't need to then be able to swap across.
Speaker Change: Or have manual tasks or disparate solutions points of integration fragmented systems different data sets, we can unify that on.
Speaker Change: The system of interaction so.
Speaker Change: So I do.
Speaker Change: Obviously firmly of the view and it's supported by our pipeline. It's supported by our customer feedback. It's supported by our innovation roadmap that I think you'll find that in the CX space. This will be a key.
Speaker Change: Why did I I is used and adopted as a part of it the enterprise take space that enterprises have.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Alright, Thank you for your perspective on that.
Speaker Change: The next question comes from Timothy Horan from Oppenheimer. Your line is open.
Timothy Horan: Thanks, a lot.
Timothy Horan: Enterprises now of the processes and the governance in place to really start using AI and you're replacing agents with it.
Timothy Horan: Live agents with AI agents and can you give us maybe what the relative <unk>. If you replace it you can see with an AI agent. Thank you.
Tim: Thanks, Tim so.
Tim: As I mentioned earlier enterprises are very clear that in the world of customer service the opportunity of both self service. So the use of Io agents to fulfill but also the complementary platform. The beauty is.
Tim: The same data set insights knowledge and platform that you're using for a self service is also used for co pilot order summary that when a human agent gets brought into the loop. So you're using the same unified platform, which means all the history all the knowledge all the interaction we get it and it's <unk>.
Tim: <unk> available and so I think customers definitely see the benefits. There is no doubt as I also mentioned before the change journey and the adoption journey was very I mean, it's a very important area.
Speaker Change: But certainly don't want bright subsidiaries.
Tim: Yeah.
Tim: Our resilience.
Tim: Ability.
Tim: Battered much in these calls, but what I can tell you is.
Tim: The use of other platforms. They are very comfortable with what we've been delivering.
Tim: Resilient mission critical platform.
Tim: Decades.
Tim: I'm sorry.
Tim: Platform.
Tim: The same capabilities going ahead.
Tim: Eric.
Tim: Some rigor around I think it's those two together with the changes.
Tim: In their contact centers, and that's where we're seeing that transition.
Tim: I think it will.
Tim: Alright, I think as we bring it to the scale. We drive these partnerships youll see more and more experience of adoption because it's a logical area.
Tim: As it relates to us, we probably I'll hand, you back to give you a bit of time on that.
Tim: Yes.
Tim: When you think about that.
Tim: In comparison.
Relative to a human agent.
Tim: The opportunity is significant.
Right today, we're already looking at human agents and it does have a limited opportunity now we're talking about.
Tim: A single pane of glass for consumer all the way from the interaction wherever already.
Tim: And today.
Tim: Going far beyond that and what Scott is talking about Houston, Austin and fulfillment.
Tim: Yes.
Tim: Handle and then create this seamless journey.
Tim: The way to fulfillment.
Tim: So really now you're greatly expanding the Tam opportunity.
Tim: <unk> opportunity as well for AIA.
Tim: Thank you.
Tim: The next question comes from Katherine Xu.
Tim: Somewhere else to loss Securities your.
Speaker Change: Your line is open.
Speaker Change: Hello, Thanks for squeezing me in.
Speaker Change: One question on the partnership for the AWS.
Speaker Change: Trying to leverage that.
Mark: Mark good morning.
Mark: Then I'll ask a question on services now.
Mark: There are several competitors that have announced partnerships.
Mark: Take those incentives that you are ranked with them that they would bring forth your opportunity over the others. Thank you.
Speaker Change: Yeah, Great question, so on the AWS side.
Mark: Right.
Mark: Britain coverage.
Mark: Down market, but across the entire market.
Mark: The advantage is purely on the go to market. So I didn't know if you've got <unk>.
Mark: On the AWS marketplace, it becomes a lot easier.
Mark: Existing customers of AWS, who use their capabilities for other areas to be able to obtain extended use.
Mark: No doubt that we see the go to market advantage.
Speaker Change: Hi on AWS partnership we'd really.
Speaker Change: Focusing on the joint product innovation the inherent technology.
Speaker Change: Capabilities that they have.
Speaker Change: To be able to enhance our for example access to data sets across the enterprise.
Speaker Change: We can.
Speaker Change: In the fulfillment of our interactions. So we can become even more value to our consumers and doing that in a 91.
Speaker Change: And that's applicable for down market as much as it would be for.
Speaker Change: Market.
Speaker Change: On the sales side.
Speaker Change: So it doesn't have a clearly.
Speaker Change: Working with us to be able to help fulfill the front office. So that initial interaction and then fulfillment.
Speaker Change: Yeah.
Speaker Change: And in doing workflows that take you into other systems being able to interact and do that at speed and the advantage, we see that differentiates us through that partnership.
Speaker Change: We will be able to provide that.
Speaker Change: And that interaction and automatic resolution.
Speaker Change: Normally would.
Speaker Change: Would then interact and then kick off those workflows and those other back office systems will go toward debt either.
Speaker Change: And for <unk>.
Speaker Change: That's the differentiator.
Speaker Change: How that really does re imagined the white customer service is being delivered.
Speaker Change: Alright, thank you.
Speaker Change: Your last question comes from Chris Reimer from Barclays.
Speaker Change: Alright.
Speaker Change: Okay.
Speaker Change: Hi, Thank you.
Speaker Change: Most of my questions have been answered already.
Speaker Change: Any comments you have.
Speaker Change: Further M&A.
Speaker Change: Activity.
Speaker Change: It's still on your radar.
Speaker Change: So I think I've mentioned before probably.
Speaker Change: The beauty one of the disadvantages of Nazis.
Speaker Change: The operational rigor that.
Speaker Change: And the team have delivered over a period of time, a long period of time, but also the strong balance sheet the financial position really does give us.
Speaker Change: Flexibility and Optionality.
Speaker Change: My focus and I've mentioned this before is very much around long term growth and long term shareholder value and looking at inorganic so we very much.
Speaker Change: Looking at both.
Speaker Change: Returned.
Speaker Change: Share buyback is an indication of the.
Speaker Change: Providing ongoing value to shareholders, but looking at inorganic moves that will enhance our value proposition and.
Speaker Change: And being able to do that and having the flexibility to do so so it's very much on the horizon.
Speaker Change: Great Thanks for that.
Speaker Change: That concludes our Q&A session I will now turn the call over to Scott Russell for closing remarks.
Scott Russell: Thank you operator, well. Thank you everyone I appreciate the questions based on I appreciate the questions, but even more importantly, the opportunity to share what we saw was a really strong quarter.
Speaker Change: As I think I've mentioned, we've got we're executing fast we've got a lot of.
Speaker Change: The positive outlook in terms of the things to come and we look forward to sharing more detail with you at interactions at our Investor day, where we can share not only the product roadmap and the insights on what we're building, but how that fits into our financial outlook and I look forward to seeing you there. Thank you everyone.
Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining and you may now disconnect.
Speaker Change: Please wait the conference will begin shortly.
Speaker Change: Okay.
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