Q2 2019 Earnings Call
At this time I would like to welcome everyone to the structures Q2 2019 earnings conference call.
All lines have been placed on mute to prevent any background noise.
After the speakers remarks, there will be a question and answer session.
If youd like to ask a question. During this time simply press Star and then one on your telephone keypad, if youd like to withdraw your question press the pound Keith Thank you.
Isn't that tell you can ask me in structures Vice President of Investor Relations you may begin the conference.
Good afternoon, everyone and thank you for joining us on today's quarterly earnings Conference call. Today's call is being hosted by Dan Gold <unk>, Oh, Hey, Steve Kaminsky CFO before we begin I'd like to remind you that today's conference call will include forward looking statements based on the company's current expectations. These forward looking statements are subject to a number of significant risks and uncertainty and that actual results may differ materially for a discussion of factors that could affect our future financial results and business. Please refer to the disclosure in todays earnings release and the other reports and filings in the filed from time to time with the Securities and Exchange Commission, although statements I made as of today based on information available to us as of today and except as required by law would assume no obligation to update any such statements. The content of the conference call is unstructured <unk> property and cannot be reproduced or transcribed without our prior written consent joining the call. We will also refer to both GAAP and non-GAAP financial measures.
You can find every conciliation of our GAAP to non-GAAP measure is included in our press release, which is posted to the Investor Relations section of our website all of the non doesn't need financial measures. We will discuss today are non-GAAP unless we state that the measure is a GAAP measure.
Now I'd like to turn the call over to Instructure CEO , Dan Goldsmith thinking, it's all Leah and good afternoon, everyone and structures mission of helping people grow from the first day of school to the last day of work is resonating with our growing customer base of more than 30 million people Q2 was another solid quarter for and structure as we grow our business and introduced new capabilities with our canvas learning management and bridge employee development platforms. In Q2, we delivered 62.9 million in revenue representing 26% year over year growth I am pleased with our performance during the first half of 2019, we introduced new features and products expanded partnerships and we welcome to portfolio mastery connect into the Instructure family, we have filled key executive positions this year, including bringing on more to develop as chief marketing Officer, Jennifer Goldsmith as Chief strategy Officer, and most recently, Frank Molesky VP of global sales Frank.
Brings more than 20 years of experience in sales and expanding SaaS businesses with the addition of these leaders the build out of our senior executive team is now complete earlier. This month, we held our annual Instructure Con event in long Beach, California, We hosted over 3000 attendees from more than 1200 institutions and 70 partners. We introduced new features to our canvas learning management platform and our existing and prospective customers are excited about these capabilities, we announced expanded partnerships as well for example, we're working with Amazon Web services and the Apple enabling access to their educational content directly through campus. We also share the success of our integration efforts with mastery connect and portfolio, who already feel like natural members of the Instructure family.
We're growing revenue and increasing in structures market share across K 12, and higher education in Q2, we added many new customers. Some select highlights from the quarter include Rowan University Global learning and partnerships and New Jersey will expand its use of canvas with 50000 additional learners.
Canvas displeased longtime incumbent blackboard at the University of Cincinnati East Carolina University, and the University of Alabama for a total of 79000 learners in K 12, Charleston County School District in South Carolina and auction our Union High School District in California will use canvas for a total of 41000 learners.
Shelby County School District in Tennessee, one of the largest districts in the United States will use the innovative assessment capabilities of mastery connect towards 89000 learners as will Hampton City schools in Virginia was it 16000 learners.
North Orange County Community College District in Southern California, and East Carolina University will offer access to portfolio for more than 100000 learners, helping students move from school to work in Q2 key International education wins across the regions include Netherlands Master University ailing University in Germany Northwest Regional College in Northern Ireland, Syn Lab, Europe's leader in diagnostic services in France, and in Sweden of solid University and God look the Moon for K 12, and higher education are all moving the canvas for combined totaled 75000 learners in Australia. The Education Center of Australia, The City Boys High School and the college of law, all chose canvas and finally escola superior that propaganda in marketing a higher education institution in Brazil will now use canvas instead of blackboard for 15000 learners internationally.
We continue to mature our go to market strategy, we are pursuing new opportunities with prospects, who are using SaaS and open source solutions and we are learning to unlock the patterns for success in existing and new countries. As we continued to expand now let's turn our attention to bridge in June we hosted our first Standalone Bridge Conference in Park City, where heads of talent and HR joined us to discuss employee development. During the event, we announced the expanded bridge employee development platform with new products that include career for career pathing and engaged for measuring employee sentiment and engagement with these additions bridge is now a comprehensive solution for companies to use as they invest in their most important asset their people during bridge Shaun. We also shared recent research that we conducted with Harris poll. One notable finding is that nearly 70% of us employees say, they are likely or somewhat likely to leave their current jobs for companies that.
And best in employee development organizations are looking for ways to further develop their employees and as they do they are turning to bridge for a solution. We have evolved from a corporate LMS into a full employee development platform for corporations and our customers and prospects have embraced this change in Q2, we continued to make progress with bridge key highlights include mutual of Omaha ways, a Google company and one of the world's largest animation studios all launch bridge projects within their organizations, We signed American Express who will use bridge for 10000 contractor trainees Teluss International will expand its use of bridge for employee development and added 40000 employees across 10 countries and as the academic and professional worlds converge, we continue to see opportunities and adoption of bridge and education, Tulane University, Colorado State University and Western Governors University are a few examples of camp.
As customers buying or expanding bridge for the development of their faculty and staff as we evaluate the success of the bridge business. We are monitoring when rates attach rates and significant deals. Our Q2 results demonstrate progress against all these metrics during the first six months in my role I've spent considerable time with customers in schools in the workplace and at our events I am taking the time to review our business, which will allow us to weigh our investments evaluate growth opportunities and ultimately make the rate changes moving forward. We are improving the efficiency of our business through a series of ongoing initiatives such as growing engineering talent in Budapest, we're making solid progress on our strategy executing to our plan and strengthening the foundation of our team and our products with this in mind, we look forward excited by the prospects for the second half of 2019 and beyond.
I would like to take this opportunity to thank our customers partners and employees for their continued support and commitment to in structure and our mission I'll now turn it over to Steve Thanks, Dan and thanks, everyone for joining US today as Dan mentioned, we delivered a solid Q2 with healthy revenue growth. Let me provide some additional details on our Q2 financials total revenue grew 26% year over year to $62.9 million of words subscription revenue was $57.3 million. This healthy revenue growth is a direct result of customer growth. The contributions from our recent acquisitions and that revenue retention of over 100% International revenue as a percent of the total was 20% as a reminder, this quarter. Our total revenue includes the contribution from our two acquisitions, which was almost entirely domestic revenue. If you were to exclude that revenue international revenue as a percent of total for the quarter would have been essentially equivalent to Q1 12 month rolling billings at the end of Q2.
$257.3 million up 20% from the second quarter 2018 also calculated on a rolling 12 month basis. This also includes incremental billings from our two acquisitions, which added to the growth rate for the remainder of my commentary unless otherwise noted I will discuss non-GAAP results and all EPS numbers are on a per common share basis gross margin in Q2 was 71.3% as we discussed last quarter gross margin was impacted modestly year over year by our recent acquisitions Q2 total operating expense was $50.8 million. This represents as a percent of revenue a decrease of 800 basis points compared to last year.
Of the 800 basis point decrease the majority was related to the change in compensation policy, we discussed last quarter, partially offset by the incremental expense of our two acquisitions after accounting for those adjustments, we realized a 230 basis point improvement related to operational efficiencies, our operating loss was $5.9 million.
GAAP net loss for Q2 was $20.7 million as compared to $12.5 million in the same period, a year ago non-GAAP net loss for Q2 was $6 million, which is eight cents per share lower than Q2 of last year turning to the balance sheet. We ended the quarter in line with our expectations of $47.5 million in cash cash equivalents and marketable securities free cash flow for the second quarter of 2019 was negative $17.1 million. Additionally, we remain on track to reach approximately breakeven for free cash flow for the full year.
As we have been talking to investors over the last quarter. We've received requests for additional color surrounding our recent compensation philosophy change. So let me now provide a bit more granularity in looking at our expectations for full year 2019, the year over year increase in stock based comp is a direct result of four factors.
The first factor is incremental head count growth, which is a component of business as usual. The second component is the equity portion of CEO and executive compensation as a reminder, our prior CEO Josh coats did not receive any equity grants. This was normalized when Dan joined the company and as Dan has mentioned, we have added to the executive rigs, which contribute to incremental stock based compensation. A third component is additional head count from our recent acquisitions of portfolio and mass to reconnect combined these factors account for slightly less than half of the expected year over year increase in stock based compensation. The remainder is related to the overall change in compensation philosophy implemented for 2019.
Let me end my remarks, with a discussion around our expectations for the third quarter and full year for the third quarter. We expect revenue in the range of $67.7 million to $68.3 million non-GAAP net loss of 7.4 million to $6.8 million and non-GAAP net loss per common share of 20 to 18 cents for the full year, we expect revenue in the range of 258 million to $260 million as compared to our previous guidance of 257 million to $260 million, we expect non-GAAP net loss of $24 million to $21.5 billion as compared to previously stated guidance of $25 million to $21.5 million and a non-GAAP net loss per common share of 65 to 58 cents as compared to previously stated guidance of 68 to 58 cents included in our full year GAAP net loss of $60.3 million for stock based compensation, a slight increase from last quarter. The slight increase was due to finalizing the accounting.
For the mass to reconnect acquisition and the addition of the two executive hires that were made since our last call for calculating EPS, we expect our shares to be $37.2 million for the third quarter and $36.8 million for the full year in summary, we delivered a solid quarter and we're well positioned as we head into are important and busy third quarter with that let's open the lines for questions.
Operator, Please go ahead.
Thank you at this time I would like to remind everyone in order to ask a question press star followed by the number one on your telephone keypad.
We'll pause for just a moment to compile the kuni roster.
Your first question comes from Brian Schwartz with Oppenheimer. Your line is open.
Yes, hi, thanks for taking my questions here this afternoon.
Hey, Dan just wanted to ask you about the domestic business in the quarter. It looks like it had a bounce back here from the first quarter, even when I strip out the contribution from the acquisitions.
Just wondering if you can dive a little bit deeper into what you're saying here on the domestic side just wondering if any big deals swung swung outperformance for the quarter and any other commentary they have on the U.S. business.
Hey, Brian it's good to hear from you.
Thanks for the question.
No actually the.
Things are going basically as expected this year.
As we mentioned we are leaning into more proactive demand.
Generation.
Seeing some good signs from that but I don't think there's anything any outliers in either direction right now, it's sort of business as usual and as expected through the first half of the year.
Fair enough and then other questions I wanted to ask you Dan as we get a lot of questions on just what's happening with the pricing side of the market and.
I don't know if you want to go back say three years or five years or whatever the time horizon as.
What are you seeing in terms of pricing on that core canvas product side, and then I guess I do realize that it's going to vary based on engagement, but any commentary just on overall trends would certainly be helpful. And then also if you could comment on what you're seeing on the renewals in terms of like for like renewal on that per seating pricing. Thanks.
Yes.
Pricing is sort of as usual as well I wish I had more exciting answers for you here.
One of the things that we.
We focus on is having very consistent and fair pricing in the market.
So from our perspective, there's really nothing strange from a pricing perspective.
As we add more products to our educational portfolio.
Obviously, we're seeing some different sales cycles are things like mastery connect and portfolio.
And there is less of a service center price price point in the market for areas like.
Students access, but in general the pricing and the pricing.
Levels are remaining very consistent and standard.
For us Steve you want to comment.
Yes, so just to answer the second part of your question the Brian .
The renewals are coming in as we would have expected.
This is always the time of year, where if something slips by a week or two thats very typical because theres such an incredibly high volume, especially on the education side of our business.
However, there is nothing unusual happening the renewal rates are very consistent with prior years, and we're seeing pretty to productivity.
Last question from me and then I'll pass it off just wanted to ask you about the efficiency gains and the margin outperformance I guess in the corridor and I did hear on the commentary. It does seem that you are happy with what you're seeing so far in the trends on on your productivity can you talk maybe about what sort of initiatives that you are starting to put in place here that continued to improve that operational efficiency over time and is there anything else. That's maybe going on there that can maybe remove some of the overhead that Ken maybe even.
Push forward those margin improvements even better than what we saw in the results here. This afternoon. Thanks.
So.
Yes, two questions, but that's all right.
On the operational efficiency.
Ill now operational efficiency side, just a couple of quick comments, we're continuing to pursue a number of mechanisms that drives.
Efficiencies in our business and optimize what we are doing some of those fall to the bottom line, but a lot of those.
Our looking at how we can invest in the business or just just driving some optimization. So we can be more impactful. Some of those are optimizing customer service weve actually implemented are piloting.
Part time working model we've shifted.
Have some resources in Budapest as well.
We have a variable cost model for so yes.
We talked about but it is a number of times both on the engineering side.
And the support side, we're looking at some of our vendor contracts as well to look at costs.
In the later part of your question.
Theres absolutely work that we are actively doing to make sure two things on the on the headcount side one.
You're right sizing the teams and the.
A span of control for managers to make sure that they're they're right size too.
Our our managing our customer base and sales efforts.
The second thing is ensuring that we have the right people in the organization. So we brought in a lot of great talent.
Over the past six months or so one of the things that.
Especially proud of is where we are with the senior executive team now with the hiring of Frank.
Most recently is coming into the organization.
As an overall head of.
Global sales were bringing some really great talent into the company.
Right well good job on the results and thanks for taking my questions. This afternoon.
Thank you.
Your next question comes from Brad Zelnick with Credit Suisse. Your line is open.
Hi, Thanks for taking my question this is Bob and on for Brad.
Dan we heard a lot of positive buzz surrounding the potential of dig at Instructure Con.
Can you just provide us with an update on how you guys are thinking about monetizing that opportunity and any updated thoughts on potential timeline.
Yeah, so from a date perspective.
Big first and foremost we want to be clear data is really the code name for the initiative that we have around data and analytics data science and.
Machine learning, we will have products that were lease over time in these areas, but we continue to reiterate it's relatively early days we have some.
We're in the pvt phase the product validation.
Tore phase, we're making some great progress working with a number of universities and are getting fantastic.
Feedback there is not a lot of details to share right now other than we're looking to get this right.
I think Dave and data in industries like education and vertical markets.
Present, a really great opportunity for us to make a big impact on the industry as well as introduce new products. So.
When we look towards through the end of this year and continued experimentation and beta efforts.
We look towards next year, when we might see more.
Considering products and product releases.
That's helpful and just a quick follow up I know, it's early but can you just speak about the performance of your recent acquisitions have they performed relative to your initial expectations.
Great question. So every day that goes by with an acquisition generally.
You know more and more around how smooth. The acquisition was you can only see it sort of in in arrears and with mastery connect and portfolio on both were very pleased with where they are they are delivering on what we expected.
Within the business and we're also pleased to see some interesting contracts come forward. Some large districts from mastery connect some portfolio deals not only portfolio led by portfolio into.
Canvas schools as well we highlighted some of those on the calls so it's still early days for both of those were pleased with the field execution. We're pleased with the results that are right on the mark with our expectations and we're still working on a number of elements around product integration for both solution. So stay tuned for more product advances over the next six to nine months.
Perfect. Thanks for taking my questions.
Yes.
Your next question is from Scott Berg with Needham Company. Your line is open.
Hey, guys. This is Josh on for Scott.
So we spoke to some customers that instructure con migrating from little to canvas.
Accelerating these migrations has taken some time do you think there is any specific driver like total cost of ownership savings or simplifying their t. structure more cloud products.
Accelerating thats or or what are you hearing from these customers.
Yes moodle.
Moodle is open source.
And a lot of organizations by generically in the open source is sort of a proceed free model, which means that their budget allocation an organization around sort of open source solutions is different thing here.
Traditional.
Purchased solution or or SaaS solution takes more effort in resource you don't get the benefits of ongoing innovation in the same way you've got to manage a lot of the stability and security of the platform and what we found in many cases is that the total cost of ownership like you alluded to is really the key to two selling into that that mood audience, Tom or the open source.
Prospects, we still have some work to do there, but every quarter, we see healthy progress around converting customers.
Over to Msas, it's a TCOS sell a sale and we need to keep working along those lines. The other thing is model is much more.
Prevalent in the international space and so the other element with international is that education is market by market. There is not really many.
Regional or more and more global educational.
Organizations. So in addition to us being able to articulate strong tcl conversion on campus, where it's where we're able to its also just establishing credibility momentum in markets as we expand into places like France, and Spain, and the Dach region.
Okay, Great and then just one more for me.
Also adding Instructure Con you mentioned that the company is hiring the greatest number of engineers and developers for canvas in company history, how should we think about the pace of these hires and implications for opex growth throughout the rest of the year.
Yes, Steve you want to comment yes, so we've taken a close look at that and.
If you look at it in the prepared remarks, I mentioned that was a 230 basis point operational efficiency improvement.
Though the total 800.
Basis point decrease year over year.
If you look at the details.
Engineering actually is relatively stable it actually went up by some number of tens of basis points, but it was relatively stable versus both DNA and sales and marketing, which went down year over year again once you remove the effect of the compensation change and the two acquisitions.
So I think that's where it shows up so what's going to leverage more slowly. This is very consistent with what we've been saying for several years that R&D of the three major categories of Opex will leverage the most slowly overtime as we continue to make investments in our products. The other thing to mention too is.
We're already getting strong productivity out of Budapest. So when we look at the global cost profile of our R&D.
A function.
We're able to apply a lot more resources at a much better cost profile within the business. So that's a contributing factor to us unlocking that potential.
Okay, great. Thanks, guys.
Yep. Thank you.
Your next question is from Eric Lemus with Suntrust. Your line is open.
Hey, guys. Thanks for taking the question and nice job on quarter.
You talked about in the prepared remarks, some of these holdout schools that Fannie Mae to switch over to canvas. If you look at some of the schools and as opportunities that are up for bid now an under RFP.
Do you think there is that more of a willingness for those schools to switch solutions or stay with the current legacy solution that they already have.
So it varies but in general as as time passes I think there's more and more pressure for.
Organizations to switch solutions their legacy solutions are not keeping pace with innovation and expectations for teachers and students that being said.
There is also some resistance just in terms of prioritizations within institutions.
As well, where they might be looking at their current LMS solution, saying hey.
This is good enough it's not high on that you know it may not be wonderful, it's good enough, though and its stable and so we have other priorities.
With the addition of mastery connect in portfolio.
As well as the additional advances that we introduced during Instructure con within core canvas.
We are able to increase the value proposition of canvas as a as a learning platform and we are seeing some good moves forward in our pipeline and opening deals. The other pieces of the sales motion is some organizations just don't understand the power of canvas and so they've gotten into a pattern of pressing there were new button over and over again, and so with us leaning more into the market.
We're starting to see opportunities created that would have never come to market before so I don't think there's generally an inclination or something happening in the market that is driving organizations to consider.
Moving where they haven't before we're trying we're creating more of that.
Demand and understanding the different dynamics of change to integrate the value proposition for these organizations.
Great. Thanks, that's really helpful. Dan.
The next question on canvas conference. There was obviously a lot of having a lot of product to digest at the conference.
That you presented to customers whether that be the data analytics, the acquisitions rich content editor et cetera, but when you talk to customers and you look back what do you think actually garnering the most amount of excitement from customers and prospects from the conference.
Bettina Love was was generated a lot of excitement is one of our speakers. She is phenomenal I don't know if you were there for that although Malcolm Gladwell on Dan Heath were already hit as well, but I think you're asking more about garnett excitement about the canvas platform.
So I think there's really.
Two or three things that add gain a lot of excitement out of what we are doing we had updates on analytics. We released a lot of capability. We're about to release a lot of capabilities around analytics and the platform that allow institutions to and teachers to look at more student base analytics course analytics usage analytics, I think Canada is sort of locks unlocks a lot more potential for those constituencies to understand impact in change in opportunity.
So that was a big thing we made enhancements to some of our communications and group capabilities in canvas, which people are very excited about and then I think the third thing is some of the integration is it was a little more subtle but the integrations that we're doing with mastering connect and portfolio also generate a lot of excitement our discussions around data science and animal Codenamed day is something that got a lot of dialogue and what we've talked about their sort of bringing into the open.
Transparent dialogue around the use of data and education, so that got a lot of traction.
And we will be continuing conversation as well.
Okay, great. Thank you.
Again, ladies and gentlemen that this star and one Ticky for your question. Your next question comes from Brian Peterson with Raymond James Your line is open.
Hi, Thank you Sue so maybe just wanted to hit on me the longer term growth opportunity for the canvas business.
You've had some interesting strategic M&A I'm just curious.
How we should be thinking about the right way to look at that that growth profile longer term.
Hey, Brian how are you. So your I'm, sorry, I just want to make sure I understand your question.
You want to understand the longer term growth profile for canvas.
Yes, just obviously there have been a significant amount of share gains in the past you've made some M&A as we look at the growth profile potentially longer term how should we think about the growth is that.
20% is it high single digits I'm, just looking to get maybe a range on that.
Yes, I can't talk to a specific range I know you'd love me to comment on that what I can say is our prospects for growth and maintaining and accelerating growth moving forward are much greater than they were even six months ago.
We were really focused on the core educational erle mast and as we look to broaden our impact on education, introducing new solutions, we're seeing not only the expansion of the Tam in education and the opportunities that we're already seeing come through the acquisitions and the organic growth of our product offerings and education and will be more of those to come but we're also seeing those acquisitions and new product capabilities.
Make core canvas LMS more competitive in fact, there were a handful of deals this past quarter that with the addition of.
Of mastery connect would would not have come to the market or maybe not have come our way in the past so that that's probably the best way I can describe it right now we're going to continue with that layer growth strategy.
That will give us a great opportunity for sustained revenue growth over time, the only other element I'd add to that Brian is the international opportunity as well.
We're as I mentioned in my remarks, we're expanding into additional markets, especially in Europe as well as some in Asia Pac takes a little time to get in the rhythm and group of how those markets operate but they represent more and more opportunity for us to drive growth.
Got it thanks, Dan maybe just as a follow up on the bridge business just.
Obviously, some some high profile logos. This quarter is there anything that you can share on sales cycles in how those have changed over the last couple of quarters. Thanks guys.
Yeah. Good question.
So couple of things we are still in the early phases, we introduced the employee development platform with expansion, adding engage for employee voice in sentiment and career for career pathing as well as expanding capabilities of the mobile offering with Enbridge as well just about eight weeks ago is at the beginning of June . So it's still early days for that but we're actually pleased with the number of the employee development wins coming in.
And the employee development wins coming in even over the last eight weeks and that speaks to the attach rate on deals. We're seeing attach rates is one of our three key metrics come into play. So we're really pleased with the employee development suite driving that forward, we've always talk about significant deals as well.
My my excitement is pretty tempered around where we are so we're really happy to welcome organizations like American Express.
To the Instructure Enbridge family.
But we want to be very measured in understanding whether these data points are creating a trend or not and give it a couple of more quarters in terms of our progress. We've also stood up our sales team as you know Brian we've gone through a lot of changes within our sales team over the last six months as well. So you know hitting hitting late Q2 into Q3, we feel much more sort of stable with our our bridge team filled and up and running and sort out speed with pipeline. So we're going to continue to watch attach rates watch significant deals, which is sort of logos and sizes and there were also watching win rates and as I mentioned in the remarks, we've made progress in all three of those metrics this past quarter.
Great color Thanks, Dan.
Yes.
Your next question is from Rishi Jaluria with D.A. Davidson Your line is open.
Hi, guys. This is hannah on for issues. Thanks for taking my questions today.
Just starting off its nice to see that you've built out the exact team I was just wondering if you could talk about maybe the top three priorities for Frank.
Okay, great and a great question.
So.
Yes, so frank coming in.
Three priorities. So let me start with a global Frac fabric of our sales methodology, so first and foremost as weve been establishing the team we want to make sure we have a strong and diligent.
Sales methodology and execution process. Frank is built global teams in the path. He passed he builds very strong sales cultures and team. So one of the first things that he's going to focus on is our sales methodology.
And our execution.
The other thing that that serve Frank is going to be focusing on with that team is to ensure that we have.
Good approaches for key key deals key prospects and key markets. So we're being very strategic and getting ahead of opportunities as early as possible.
So thats a big second piece of what Frank will be focusing on.
As well and then the other thing is Frank will be working very closely as part of the overall executive team to ensure that the conductivity cross sales and marketing with products and services is very well connected historically.
We may have had some some disconnects or some working models that have not been as a coordinated as we've been going through the presales process. Frank has done a great job in his previous companies gone on these factors that but that would be the third one.
Great. That's super helpful. And then on the bridge side I was wondering if you could speak a little about your M&A philosophy build versus buy any capabilities you are still looking to build out on that.
With regards to bridge specifically are enrolled in the company.
I would say bridge specifically.
So we have a lot of product right now we have put a good amount of investment into two bridges a product that we want to reach this milestone of bridge Khan.
Launching our employee development platform and although there is much more to do in terms of flushing out capabilities and working with with key customers right. Now we have a lot of product to get out to market on.
Inorganic broadly within that in the company will be part of our profile moving forward, but.
Really is based upon sort of the opportunity for us to accelerate and enhance the business.
Across the business, whether it be in the energy space or Enbridge, but at this time with bridge in the corporate space.
We have a lot of products. So now it's about execution and growth.
Great. Thank you.
Your next question comes from Britain, No rush with Greenberg capital markets. Your line is open.
Hi, guys. Thanks for taking my question. Another bridge related question, maybe previously provided guidance that over 500 companies are using bridge I was just wondering if.
Provide any update to that number and if you're seeing any.
Significant change in the size of companies that are.
Adopting bridge it seems that you are constantly keep disclosing larger and larger.
New contract wins like Amex and collection was wondering if you could provide any details around that.
Yes so.
So we continue to grow we're not releasing an updated customer account number right now and something we can consider moving.
For but we're making steady progress regarding large deals and logos, we're starting with the introduction of the employee development platform.
The introduction of our enterprise selling team and us are growing and maturing and solidifying summer sales motions.
We're seeing a few things happen and I mentioned that three main.
Ellman said earlier when rates attach rates and significant deals.
But our ability to learn how to land and expand is something that we're continuing to build muscle memory around and in fact, when you look at amex.
Or some of the other.
Look as we mentioned those are great. Examples of where we now have MSR is in place and the ability to work within those companies demonstrate success at those company level with a lot more that we can do within those organizations and those organizations like tell us and others that have been a bridge customers for some time now that as we introduce new products have continued to adopt and expand so my commentary right. Now is really the fact that we're continuing to embrace and learn some of these new patterns and we're seeing some some.
Good and positive results.
Thank you.
Sure.
Ladies and gentlemen, this does conclude todays Q and a period and call. At this time you may now disconnect. Thank you.