Cvent Holding Corp.

Good afternoon, everyone. My name is Kellyanne. I'll be your conference operator for today. At this time, I'd like to welcome everyone to today's C-VENT first quarter 2022 earnings conference call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star key followed by the digit one on your telephone keypad. If you would like to withdraw your question at any time, you may also press star one once again. At this time for opening remarks, I'd like to turn the conference over to April C, Investor Relations. Please go ahead, ma'am.

Good afternoon, and thank you for joining us on today's conference call to discuss the financial results for Cvent's first quarter 2022. With me on today's call are Reggie Agrawal, Cvent's founder and chief executive officer, and Billy Newman, Cvent's chief financial officer. During today's call, we will review our financial results for both the first quarter of 2022 and discuss our guidance for the second quarter and full year of 2022. In addition, our earnings press release, SEC filings, and a replay of today's call can be found on our investor relations website at investors.cvent.com. Today's call will include forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding our financial outlook, including our guidance for the second quarter and full year 2022, are market opportunity, market position, product strategy, and growth opportunities. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be material different from those expressed or implied by the forward-looking statements. Forward-looking statements represent our management's beliefs and assumptions only as of the date made. Information on factors that could affect the outcome of the matters covered by these forward-looking statements is included in our periodic filings with the SEC, including the section titled Risk Factors in the quarterly report on Form 10-Q for the quarter ended March 31, 2022, filed with the SEC today. Additional information is available in our annual report on the Form 10-K for the year ended December 31, 2021, as well as in the cautionary language included in our earnings press release. In addition, during today's call, we will discuss non-GAAP financial results, which are not prepared in accordance with generally accepted accounting principles. A reconciliation between GAAP and non-GAAP financial results is included in our earnings release filed with the SEC and available on our investor relations website. And now I would like to call, turn the call over to Reggie.

Thanks, April. And good afternoon, everyone. I'm excited to be here with you today. Now, we got off to a great start in 2022, delivering revenue and profitability that were above our guidance. Revenue in the first quarter was 137.4 million. a beat of 3.9 million versus the high end of our guidance. And this drove a beat versus the high end of our guidance on adjusted EBIT as well. The revenue outperformance was driven by higher onsite revenue associated with greater demand for in-person functionality. Now we expect these trends to continue, resulting in a strong growth of 25% in the second quarter. And we're therefore modestly increasing our full year guidance, which Billy will detail later in the call. For those of you who are new to our story, Here's a quick Cvent overview. Cvent is a SaaS platform that provides value to event organizers with our event cloud solutions and to event venues and hotels through our hospitality cloud solutions. Our event cloud is used to plan, market, and organize engaging events of all sizes across all event formats, including virtual, in-person, and hybrid. And our hospitality cloud offers a marketplace that enables meeting organizers to find and book event space at hotels and unique venues. as well as software solutions that help venues promote and manage their meetings and events business. Fundamentally, our platform helps our customers grow their top line revenue and drive engagement, while reducing OPEX and ensuring greater compliance. In our last earnings call, I talked about three drivers fueling our growth for 2022 and beyond. First, the return to in-person events and the accelerating demand for hybrid. Second, new opportunities to measure and grow attendee engagement. And third, expansion of our ecosystem. In Q1, these growth drivers continue to fuel our progress across the entire business with both clouds showing strong performance in the quarter. Now, before I recap Q1, I want to first share our views on the state of the event and hospitality markets. Never before in Sieben's history has there been such an extended period of time when the world didn't connect, collaborate, socialize, and conduct business at in-person events. This is fundamentally counter to our natural desire for human connection. This is why organizations and attendees are yearning to meet in person again. We see it and hear it every day, and we believe that pent-up demand for face-to-face interactions will continue to be a tailwind for our business throughout the rest of the year. Now we believe this pent-up demand will help offset macroeconomic pressures that might otherwise dampen a return to in-person and hybrid events. Now looking at our Q1 business in more detail, Let me start by walking you through how each growth driver impacted the quarter and how we plan to continue to capitalize on the opportunity in front of us. First, let's start with the return to in-person events. Just to remind everyone, before the pandemic, 95% of our revenue came from in-person technology. We spent 20 years innovating and building a comprehensive platform to power the meetings and events industry. As a global market leader, we powered millions of in-person events, and this was our strength. then the pandemic hit. And over the past two years, we've all been generally meeting virtually. But throughout the year, we've seen a steady increase in in-person events. Now, we see this in both our own data and industry data. According to the North Star Seaman Industry Pulse Survey, 66% of event planners are booking or actively sourcing for event space. And based on sales teams' conversations in Q1, over 80% of conference and trade show planners we surveyed are looking for in-person components within their overall event strategy. But according to the same survey, and what's most encouraging, is that 40% of survey planners now believe they'll be planning more events in 2023 than they planned pre-COVID. We believe this rising confidence and demand for in-person will continue to rise throughout the year, and demand will naturally flow to us due to our inherent strength in in-person event technology. Now this is because in the new meetings and events landscape, there are more options than ever before for our customers to engage with their customers, prospects, employees, and stakeholders. We call this new landscape the triple threat. Virtual events reach massive audiences in a cost-efficient manner. In-person events are ideal for making deep and personal connections, and hybrid events maximizes the power of both. No matter what our customers' budgets, desired engagement levels, or size of their audiences, the Cvent platform can help them meet their event goals. And as a proof point of the triple threat in action, I'm very excited to announce that our net dollar retention increased in Q1 to 109%, 1% above our levels in Q4 of 2019. And as you may recall, it was 84% at the low point of the pandemic. Let me walk you through one of our customer examples that highlights how organizations are leveraging our product to support their total event program. which is leading to that strong net dollar retention I just mentioned. One of the world's leading investment banks spends over $2 million a year on Cvent software. They were an early adopter of the attendee hub at the beginning of COVID to support their virtual events. In early Q1, their team recognized that in-person events were quickly returning and they needed the right solution to deliver engaging in-person experiences. So they purchased Cvent's online solution software modules and other products. increasing their overall annual recurring revenue from 1.4 million to over 2 million. The bank also increased their investment in Attendee Hub, which they now use as their mobile application and web experience for many of their in-person, virtual, and hybrid events. This upsell is not only a testament to the power of Cvent for in-person events, but the power of Cvent's platform for your total event program. Now, this is just one example, but we have hundreds of both new and install-based customers increase their annual recurring revenue in Q1 by purchasing our onsite solution software. Some of these increases include an Ivy League school that purchased onsite solutions for the first time since February 2019 for nearly $300,000. A Fortune 500 pharmaceutical company increased their onsite ARR by 229,000. A publicly traded computer software company that increased it by 191,000. And a graduate admissions council that increased it by 124,000. I think these examples show that spending on in-person functionality is steady increasing. We also see continued demand for other parts of our event cloud, including our virtual solution. A Fortune 100 investment bank increased their virtual ARR by 361,000. A large private software company increased their virtual ARR by 169,000. One of the largest U.S. industrial distributors increased their virtual ARR by 162,000. And a Fortune 100 international oil and gas company increased our virtual ARR by 127,000. Now from the hospitality cloud side, the return of in-person events is having a real positive impact on the business. Hospitality cloud revenue also grew 17% year over year. This is up from 12% last quarter and represents the largest year over year growth for the hospitality cloud since Q1 of 2020. Now when I ask my sales team why, the number one reason is recovery upsell. As group business starts to come back, hotels want to capture as much as they can, and they are turning to Cvent's Hospitality Cloud as a strategic investment. They are using Cvent to advertise and market their event space to meeting planners, send their RPs, and then they are using our software to manage, analyze, and optimize these RP leads so they can close them at a higher rate. Here's an example. There's a new property in Vegas that is slated to open in late 2023. As part of their opening plan, they are investing heavily in Cvent to win event businesses in a very competitive market. They bought almost all of our key hospitality cloud modules, such as advertising, diagramming, room block management, analytics, et cetera. This is one of the largest deals for an individual property in our history. The annual contract value on this deal was almost $500,000. And the total contract value is approaching 2 million. This property was not alone. We had thousands of hotels, convention bureaus, and venues renew and increase their spend with Cvent because our tools are essential to winning group business as planners book events in 2022, 23, and beyond. And those that don't invest in our ever-increasing capabilities may find themselves further behind when it comes to their competitors. Now, this demand for Cvent aligns with what We are seeing and what we're seeing and what our data is showing on our fees being sent to hotels for event space. Now, overall, we're excited about the potential of our hospitality cloud business as in-person events return. Now, moving to our second growth driver, increasing opportunities for event organizers to use Cvent solutions to engage with their attendees across the total event program. Now, pre-pandemic, event organizers mostly cared about engaging attendees during the event. With the rise of video, online networking, and virtual event platforms, organizations now have the tools they need to engage with their attendees before, during, and after an event occurs, gaining even more insight into buyer needs. Let me share how we're seeing this play out even within our own events program. Now, just a few weeks ago, we held our annual user conference, Cvent Connect, in Las Vegas. This is a hybrid multi-day, multi-track conference that brings together thousands of event and hospitality industry professionals, both in-person and virtually, to network, engage, and evolve their meetings and events and hospitality programs. This year was our second year hosting it in a hybrid event format, and we had nearly 40% more in-person attendees than eight months ago when we held Cvent Connect in August of 2021. Now, we leveraged our attendee hub to create a seamless experience for in-person and hybrid attendees. Not only did Attendee Hub facilitate interactions between Cvent and our audience during the event, but it served as a focal point of engagement before and after event with pre-event appointment scheduling, attendee to attendee networking, pre- and post-event content, and post-event discussions. With Cvent technology powering engagement across our in-person and virtual attendees, we generated and measured nearly 850,000 unique engagement points, such as sessions attended, leads scanned, polls answered, questions asked, content downloaded, and more. And we're able to leverage this data and to continue to build these relationships by offering relevant follow-up content and event invitations based on the insights from not just our CventConnect conference, but from our entire event program. Our technology enabled customers to deliver this level of low friction and high engagement across an entire event program. This is making events as a marketing channel even more strategic and makes Cvent technology even stickier as organizations use Cvent more often between events, not just during events. Finally, let's talk about our third growth driver, the opportunity to expand our ecosystem. We connect the buyers and suppliers of our physical event space and streamline how they find and book event venues. But more goes into an event than just physical space. You also need the technology and other key partners to deliver compelling virtual in-person hybrid events. At Cvent Connect, we launched the Cvent App Marketplace, which delivers one centralized place for planners and marketers to find complimentary technology partners that connect to the Cvent platform. to improve event execution and deliver greater business impact. We also launched the Cvent Vendor Marketplace, built within the Cvent supplier network, to help planners find vendors and suppliers for all their event needs, such as AV and transportation, for example, whether it's virtual, in-person, or hybrid. Now, the CSN is now your one-stop shop for all your sourcing needs. While we don't expect to see any material revenue impact in 2022 from these products, we believe these marketplaces are going to be a long-term investment to make Cvent even more embedded into the fabric of the events industry. Our hospitality club business is fundamentally about monetizing events in the ecosystem. And as we highlighted at our customer conference, we've been making investments to make it easier for our venue customers and hotel customers to showcase their event space and our vendor customers to showcase their event services, win more business, and collaborate with event professionals to deliver great event experiences. For example, we expanded the localization of the Cvent Supplier Network. Planners and suppliers can now communicate with each other in 18 languages. We also announced the launch of photorealistic 3D event spaces on the Cvent Supplier Network to help hoteliers showcase their event space via immersive 3D tours. We will continue to invest in our event cloud and hospitality cloud capabilities to deliver the innovations that the marketplace demands to make Cvent the one platform that organizations need to maximize the ROI from events of all shapes and sizes. In summary, we are very pleased with the financial results from our first quarter, but we're even more excited about our future. We have a business that's resilient to potential new COVID variants, and it's positioned well for what we believe is continued strong movement towards the return to in-person events. As we continue to broaden and deepen our platform, we're both further distancing ourselves from the competition and strengthening our market position as we go after our nearly $30 billion tan. With all these investments in our unified platform, we're further insulated from macroeconomic pressures, and we're well positioned for a strong 2022. Now, I'll turn it over to our CFO, Billy. Thanks, Reggie. Good afternoon, everyone. I'll first walk you through first quarter 2022 financial performance and then discuss our guidance for second quarter and updated guidance for full year 2022. Total first quarter revenue was $137.4 million, an increase of 17.1% year over year. We beat the high end of our guidance for the quarter by $3.9 million, or 2.9%. The beat was largely driven by higher onsite solutions revenue as we saw higher than expected demand for in-person functionality in the quarter. Within total revenue, first quarter event cloud revenue was $95.0 million, an increase of 17.1% year-over-year. And first quarter hospitality cloud revenue was $42.4 million, an increase of 17.2% year-over-year. Event cloud growth is a result of growth across the platform, including event management, attendee hub, and onsite solutions. Hospitality cloud growth is due to hotels' continued reinvestment in the group portion of their business as in-person events begin to return. This is the second quarter in a row of growth for the hospitality cloud after five COVID-impacted quarters. And as expected, we're seeing an acceleration in the growth rate. Year-over-year growth in the fourth quarter of 2021 was 12.1% compared to the 17.2% we saw this quarter. Now, before I move on to expenses, I want to take a minute to discuss our key business metrics, as they also point to the trends we're seeing in the business. As Reggie already mentioned, our net dollar retention rate increased to 109% in the first quarter, which is one percentage point higher than where this metric was pre-COVID at the end of 2019. We also saw a demonstrable increase in the number of customers who contribute more than 100,000 in annual recurring revenue. As of March 31, 2022, that number was 840 customers, which is 121 customers higher than a year ago, and is a record for CMAT. The increases we're seeing in these metrics is driven by the lessening impact of COVID in 2021 and 2022 on both the event and hospitality clouds and the adoption of attendee docs. Note that moving forward, we will not report the number of event cloud customers who contribute more than 100, I'm sorry, the number of customers who contribute more than 100,000 in annual recurring revenue on a quarterly basis. We believe that this metric could be misleading when tracked on a sequential quarterly basis since there could be temporary anomalies quarter to quarter. On an annual basis, this will not be an issue, so we'll report this metric as of December 31st each year in the future. We expect this metric will continue to increase each year as a result of our land and expand strategy within our existing clients. Now, in discussing the remainder of the income statement, unless otherwise noted, all references to expenses and operating results are on a non-GAAP basis. You can find information on the most directly comparable GAAP metrics in our first quarter earnings release. Non-GAAP gross profit in the quarter was $98.2 million, or 71.5% of revenue, compared to 75.8% in the same period of the prior year. The year-over-year decline in non-GAAP gross margin is primarily due to a higher percentage of total revenue in the quarter coming from onsite solutions and merchant services, which have lower margin profiles. Moving down the income statement, Note that the operating expenses, operating expense increases in the first quarter I'm about to take you through reflect both meaningfully lower expenses from COVID cost saving measures that were still in place in the 2021 comparison period and a conscious decision today to heavily invest given the massive, massive growth opportunity that we continue to see in 2022 and beyond. Sales and marketing expenses increased 30.5%. Research and development expenses increased 22.1%. and general and administrative expenses increased 37.3%. The increase in general administrative expenses was also due to new costs related to operating as a public company that did not exist in the first quarter of last year. The main growth driver in each line item was employee expenses as a result of headcount higher to support growth in addition to increases we've seen in average compensation for employee due to wage inflation. Outside of employee expenses, The other key growth drivers were increased marketing expenses and increased contracted services. Shifting to earnings, adjusted EBITDA was $12.8 million, or 9.3% of revenue, which represents a $2.4 million beat in terms of dollars over the high end of our guidance and a 1.5 percentage point beat in terms of margin. The beat is the result of our $33.9 million revenue beat. Adjusted EBITDA margin is down from 19.3% in the prior year, and that decline in margin is again because of the COVID cost-saving measures that were still in place in 2021 and reflective of the investments we are making for growth. Turning to our balance sheet, we ended the first quarter with cash, cash equivalent, and short-term investments of $193.0 million, an increase of $66.0 million from the end of the fourth quarter of 2021. The increase was driven by strong cash collections in the first quarter, which is seasonally typical due to the high percentage of client contracts that are calendar year based and invoiced in the first quarter. Free cash flow before interest payments on our long-term debt and the change in client cash related to merchant services was $44.7 million for the first quarter, up $3.9 million compared to the first quarter of last year. Deferred revenue at the end of the first quarter was $287.5 million, an increase of 18.0% compared to the first quarter of the prior year due to year-over-year bookings growth driven by the adoption of the attendee hub and in-person events beginning to return. Let's turn to guidance for the second quarter, starting with revenue. We expect second quarter revenue of $153.2 million to $154.2 million, up 25.1% at the midpoint compared to the second quarter of 2021. This strong revenue growth is driven equally by both clouds and is powered by in-person events continuing to return. There is also a benefit to growth in the quarter related to the timing of our annual client conference. We typically hold the event in the third quarter of each year, but we had to hold it in the second quarter of this year in exchange for being let out of the contract for our 2020 in-person client conference that we switched to virtual. This benefits growth by three and a half percentage points in the second quarter, but will have an equal but opposite effect on the third quarter revenue growth. Shifting to full year revenue guidance, as a result of the earlier than expected bounce back of in-person events we saw in the first quarter, we are increasing our full year guidance to $621.4 million to $626.9 million, up 20.3% compared to the prior year at the midpoint, and reflects a $1.5 million raise over the midpoint of the guidance we shared in our last earnings call in early March. The $1.5 million raise is less than the $3.9 million first quarter B because the majority of the first quarter B was the result of revenue from events that occurred towards the end of the quarter that we thought would be pushed out to later in the year due to Omicron. This shifted revenue that we expected to realize later in the year forward to the first quarter. The remaining first quarter beat was due to the bounce back of in-person events occurring sooner than anticipated in late first quarter, as opposed to our original expectation of the second quarter. So the earlier start of the bounce back helps the first quarter and the full year, but doesn't have a snowball effect for the remainder of the year. Looking forward to the second half of the year, we expect year-over-year revenue growth in the third and fourth quarters to be relatively consistent after adjusting for the three-and-a-half percentage point impact related to timing of our client conference that I mentioned previously. This timing item will benefit second quarter revenue growth, but will have an equal but opposite effect on third quarter revenue growth. Moving to adjusted EBITDA, we expect second quarter adjusted EBITDA of $15.1 million to $16.1 million, representing a 10.1 adjusted EBITDA margin at the midpoint. Now, one detail that is key to understanding our adjusted EBITDA margin guidance is the cost of our annual client conference that I just mentioned materially exceed the revenue generated by the event. It's our number one marketing initiative, so we believe the net cost to the company is justified. Excluding the revenue and the cost of our client conference from our second quarter guidance, the midpoint of our adjusted EBITDA margin guidance would be 12.6%, meaning that we're expecting to see 3.3 percentage points of margin expansion between the first and second quarters on a normalized basis. Turning to full-year adjusted EBITDA guidance, we are keeping our adjusted EBITDA margin guidance unchanged from our prior guidance of 16.5% to 17.2%, which results in a slight increase to our adjusted EBITDA guidance in terms of dollars as a result of the increase to our revenue guidance. The $2.4 million first quarter adjusted EBITDA fee does not fully flow through to the full year because we are starting to feel an impact on our expenses from the macroeconomic factors that are currently in play, especially wage inflation. Looking forward to the margin expansion we're forecasting in Q3 and Q4, the step up in the magnitude of the quarterly expansion in those quarters is a result of reaching a solid footing from a business perspective, off of which we can now springboard in terms of margin expansion. Since the third quarter of 2020, when we reintroduced our virtual solution and our adjusted EBITDA margin peaked, we've been in a state of flux from all angles. Extensive technology development related to virtual, a high degree of support to our customers who are learning how to hold events in a virtual setting, and lots of friction in the sales process as we help our customers determine what's the best solution for them given an ever-changing environment for in-person events. Now that we have a platform that supports all three event formats, our customers' event programs are becoming more and more stable and predictable, and planners in general are becoming more confident in using technology to support in-person, virtual, and hybrid events. We can begin to level off operating expense spend and start to reap the rewards of the increasing incremental investments we've been making since late 2020 in the form of increased margin expansion through the end of the year. In summary, we are proud of our progress and performance in the first quarter. We are seeing positive signs of recovery in the meetings and events industry, but we're still in the recovery process. Although the uncertainty created by COVID is fading, other macroeconomic factors are beginning to rise. However, and most importantly, as a result of the investments we've made to broaden and deepen our platform to support all event types and formats across the total event program, We believe we are very well positioned to take our disproportionate share of the nearly $30 billion PAM. Now I'll turn it back over to the operator for Q&A.

Thank you. Once again, if you do have a question today, that will be star one. We'll hear first from Arjun Bhatia with William Blair.

Perfect. Thank you very much, and congrats on a good first quarter here, guys. Reggie, that was really interesting commentary, I think, on the return of in-person events. It certainly seems like you're expecting that to continue and you definitely saw a lot of that in Q1. I'm curious, as you're navigating some of these macro uncertainties and your customers are doing the same, how you think the allocation between in-person events and virtual shifts, given the lower cost nature of virtual events while still having

uh somewhat of an impact to reach and engage with uh with customers just curious how you see that playing out over the remainder of the year yeah jordan thanks uh great question so look you know just you know every business every event has its own kind of characteristics so it depends on what they're trying to achieve so the first thing i would say like from an allocation you know i think what we had put out before was about about roughly half are going to be in person And about, I think it was like 25, 30% will be virtual. And then the remaining would be hybrid. So that's kind of what we had said previously. I don't think it's changed much. I think, again, it depends on the goals of the events. But look, the bigger news of whether that changes a little bit or a lot, we use the balloon analogy. You squeeze one part of the balloon, the other comes through. So let's just say people are focusing on budget cuts because of some of the macroeconomic environments, and they might tend to do a little bit more virtual if they're trying to get more attendees there, as I said. So it really depends on what their goals are and what they're seeing in response. What I can tell you is I can give you a couple of case studies. I recently went to a banking conference. And they kind of switched the model from virtual to hybrid to fully in-person only. And they broke the records of the amount they had in 19. And so it really depends on the environment. We're seeing in-person come strongly. People are becoming more, you know, frankly, more willing to travel and more willing to go out regardless of the pandemic. We see, again, people investing in that in-person because of the pent-up demands. And the more leaders that go to in-person, the more they come back and say, I can't tell you how many conversations I've had with people saying, I went to this event and my God, I forgot what's in-person is like. We're going to do more in-person for our company because it just it just much better than doing it virtually that depth of that relationship the you know the engagement level is way more and you get business done more so i think look you're going to see a combination of all we're prepared for all of them we showed but we do think in person is going to continue to be a tailwind and we think the mix will probably generally be somewhere where we said um and that's right now what we're seeing at least in the in q1 and what we're already seeing in q2 but you know there's always things that can shift that as new variants come out you know, as things happen with, again, the macroeconomic environment. But again, we're prepared for any scenario.

Wonderful. That's very helpful. And then on the announcements that you made at Connect, you know, the one that stuck out a little bit was the vendor marketplace in the Cvent supplier network and the ability to kind of, you know, have that play across all event types. I'm curious where you are in actually building that out and getting the vendor data. Is that something that you have already or that's something that you're still in the process of developing? And then on the monetization aspect, I know you mentioned nothing material in 2022, but curious just how you think about monetizing and how that works from a functional perspective whether you monetize both sides of that marketplace or um or or just one side from the from the planner perspective yeah so so for the first part is the data

We're still gathering it just reminds me when we built our Stephen supplier network, but the venues and hotels we get you have 290,000 we used our India. You know office help build that and get all that granular data we have a couple hundred characteristics for each of those venues. or up to that, I should say so it's a lot of data we're collecting we're doing the same thing here now the differences were much more evolved when we launched receiving supplier network that was you know. 1213 years ago we didn't have the scale and the reputation that we have now. So look, the way we're gathering that data is getting what we're trying to make it as a curated data set. And that curated data set is that, you know, basically vendors that people recommend. Look, I'll just give an example on any supplier. Let's just use something as simple as transportation. You literally can have a hundred, you know, a hundred organizations that can help in a particular city. What we want to do is get it curated, which is one, they have some scale so they can help certainly our enterprise customers and the more midsize, and they just have a reputation to deliver, but it's not just about the big companies. It's also, you got a lot of great small ones. And the way you get that is from references and referrals from our customers. And these are people that we know, you know, have strong programs, are very particular about who they choose. So we're making that, so when they come to our system, they're like, it's not just anyone can be there. It's also a little bit of curated and again, recommended. But again, we're building that data, you know, as we speak, but it's something we've done before. And we're really good about turning over rocks to find that. Now, in terms of the second part, which is how do we monetize? You know, right now we're doing it ad revenue, just starting right now. As you start off the network, it takes a while. And again, I want to stress that we do not expect any material revenue in 2022 from this. It takes a while. We're almost like in a beta right now. Then you get to more prime time. But even then, it takes a while to build that because you're going after a really fragmented market that hasn't really had this. But as we build it, then we'll go from ad revenue to potentially transaction fields. And we know how to build a marketplace, but it does take time to do it. And we definitely have the event planners that are looking for it and the event organizers. And we think it's a great extension of the ecosystem, not just, you know, from long-term monetary, but also just it makes us as that one-stop shop.

Perfect. That's very helpful. Thank you very much. Thanks, Arjun.

We'll hear next today from Tyler Radke with Citi.

Yes, thanks for taking my question. I wanted to ask you about the competitive landscape. Obviously, you talked a lot about the optimism around in-person events, but just have you noticed any changes at your competitors now that there has been more of a focus back to in-person events? And how do you think this helps position you longer term?

Yeah, so Tyler, great question. The first thing is that, look, As things go back to in-person, as you know, as I mentioned in my script, it plays to our strength. For 20 years, we innovated. We put 1,000-plus engineers on building in-person technology until the pandemic hit. Now, we built a great virtual product, and again, it was integrated. But still, that's our inherent strength comes from the in-person. So as it goes back, it plays to our strength, especially as you compare it to other competitors. You had a rise of a lot of virtual competitors that came out. I think many of them are going to struggle because they focused on virtual. And they're struggling to make the pivot because I can tell you building in person, in our view, is way more complicated and way more difficult than building virtual. Not that virtual isn't tough to do. But now when you also build in person, it has to be, again, combined in one platform, which candidly, the complexity grows almost geometrically as you start putting all these features. That's why for us, when we launched our virtual, it took us probably longer than anyone to launch virtual compared to any other company. And I got to be candid, as we talked about before, I was a little frustrated with my tech team. saying, why is it taking us with 1,000 plus engineers? Why are these small companies putting it out? Because we are integrating it with our in-person because we knew eventually it would come back to hybrid and you'd need all three methodologies. So look, I think... um what's what's going to happen with our competitors is they're starting to struggle because they can't do the total event program as seamlessly to do it again in-person virtual hybrid and as you start doing it you know of all event types from big to small internal external that's a lot of heavy depth and product you need and also the service that across the the the that whole platform that whole you know just like all the different different iterations that you can have between those those those between hybrid in-person and different event types and the different modules that you need. I think it's going to be difficult for a lot of people to compete in that and again, get that engagement across the customer journey. But this is where the whole world's moving towards. They want one platform to do all of this and they want the flexibility. As we go towards in-person, look, you can, you never know what happens where they shift to say, hey, I had to turn this to a virtual event. And then they need that flexibility of one platform to be able to shift, you know, live. And I'll tell you this one conference I mentioned, a bank conference I went to, they changed it three different times and they were changing it literally up till up till a month before the event because you didn't know what was going to happen. That's why you need that flexibility. And that's why we know one platform and the ability to do all of them are the right things. But we know that the in-person is going to certainly drive to our strengths and having one platform and be able to service that is our other strengths. So that's why we feel, you know, it helps our business compared to our competitors. That's for one thing that we feel comfortable about.

Great. Thanks for that. And earlier you talked about the strong outlook for in-person events for next year, in 2023, thinking that it could exceed what you saw pre-COVID. I guess two questions there. Given that outlook, how are you changing the way that you're investing in the business? I guess is that kind of captured in the increased spending guide? And then secondly, have you started to see any leading indicators in terms of forward multi-year bookings show up that would capture that demand?

Thanks. So let me just start with the multi-year deal one real quick. Look, during the height of the pandemic, we definitely saw lower multi-year deals because people didn't know what they're going to do with their event program. They didn't know if it was virtual. They didn't know in person. They didn't feel comfortable with any of the methodologies. So they hesitated to invest and have a stable, let's call it, event program. As we start getting back to more normalized times and, and I mean, it's a big and, they feel comfortable understanding virtual and in person. And frankly, I think what people are starting to feel comfortable is that we might, we're going to have a combination of three and we don't know how it's going to play out. But we know we're going to have events because they're one of the best engagement tools we can with our customers or our employees or our stakeholders. So we're starting to see people, as they feel more comfortable, then they're going to feel more comfortable signing multi-year deals. We named a bunch of them that we're starting to see. As a matter of fact, I'm going to throw one out there. If you remember during our roadshow, we brought up that association that we said had signed a group from 350,000 a year to 3.5 million. Well, last quarter in Q1, they They expanded that relationship, and they signed a five-year deal that was almost close to $20 million, which is the biggest event cloud deal we've had in history from a total contract value. So that just signed again in Q1. That's an example of people feeling more comfortable with signing multi-year deals because they know that they're going to have to do all three, and we're prepared to do that. So that was kind of the first question about multi-year deals. In terms of the second question, which is how are we changing our investments? So look, we are a little bit changing towards putting a little bit more in person because we, of course, put a lot of our energy in virtual. And now we've got to balance it better to go back to in person also. But you've got to keep, because virtual is here to stay, we've got to continue to do it. Now, here's a couple areas that we're doing. So again, our attendee hub, again, to remind everyone, it went from originally when we first launched, it was just for virtual. Then now it's for engagement for all type of events, whether it's in person, virtual or hybrid. And because it includes our virtual, it includes our virtual mobile app, includes all our engagement features. And of course, it's the virtual. So kind of a combination of all three. So we're continuing to invest in Tundi Hub. On arrival, we're investing a lot in which is our on-site tools because we are seeing a bigger demand for that. And then look, video as a core competency is still something that we're continuing to invest in heavily because look, it's a new engagement driver for all types of events. And look, it's here to stay. And things like we're reinventing our webinar strategy, for example, or reinventing webinars in general. And virtual is still here. There's so much more work to do because it's still a new area that needs a lot of investment. And again, some of the other areas we're excited about is year-round engagement. And again, because the Cvent Video Center is kind of in the middle of that because engagement used to be just during the event. Now it's, again, before the event and after the event. And some of these new ecosystem things that I mentioned in our script. So look, there's a lot of areas we're continuing to invest. There's a lot of innovation going on. But I would say that with the fundamental thing, if I had to kind of put it down, it's investing because all three of those models, you know, we call the triple threat. They all need investment, but a little bit more towards in-person right now, just because that is an area that we need, you know, that we need to put some more because the whole in-person experience is digitizing. So it's not just back to the old way of doing business. It's certainly that's part of it, but it's also digitizing more and people more open to it. And that's exciting because again, event technology is at the center of it. And we believe with our one platform, we're really well positioned compared to our competitors.

Thanks for all the detail. Thanks for the question.

We'll move on to DJ Hines with Canaccord.

Hey guys, thanks for taking the question and appreciate all the color on the call. Reggie, I'm curious if people are showing up at events at the rate that you expect. Like in other words, like is the ratio of actual in-person attendance relative to in-person registrations any different than what you saw pre-COVID and And I guess if there's any difference, is there anything to read into what that might mean for the business? I know customers pay based on registration, so maybe it's not relevant. But thinking about renewal dynamics and anything else that that could impact.

Yeah. So actually, what I would tell you, that strong trend of how people are showing up, even though it varies, is absolutely a strong signal for renewals. And I'll tell you why. Because you are seeing less in-person people, because we're still not up to where we were pre-COVID. So let me just give you an example. If I had to pick a number, I would say that your average conference is seeing somewhere between 40 to 60% of the attendance or 65% of attendance that they saw pre-COVID. So think of it, just to give you a rough idea. You have certainly conferences, like I'll tell you that, I'm gonna refer back to that conference that went to the bank conference. They had more attendance in their 19 because they made a decision not to make it hybrid. They just said, everyone's gotta come in person. And so that sometimes forces people's hands to not go virtual, of course, and come in person. So you have that strategy. But generally speaking, if it depends on your conference, what your goal is, but let's say take our customer conference, right? In total, we had around, let's call it 10,000, okay? If you look pre-COVID, we were a little above 4,000, like 4,300, I think. So we got two and a half times more than what we had previously, but it was a different mix. We had about, let's just call it, a little over 50% of what we had, I think it was 55% of what we had in 19 for in-person. But that's okay because we got all those virtual. And in the end, if you ask our CMO, Patrick, Patrick will tell you, I like the hybrid model more because you can leverage all our assets. Like my speech gets in front of, instead of 44,000, 4,300, it gets in front of more. And then that's just actual during the event. Then you have the after event. you know, digital engagement. So I think in the end, what you're seeing is that in-person events are certainly not up to where they were in 20, I mean, in pre-COVID, but they are growing every week and month because of two reasons. People are more comfortable traveling, or I'm going to say three reasons. Second of all, psychologically, people are getting more comfortable. It's not even just health. Some people just, you know, have a tough time going in the office in person, even though it's not a concern with the health, it's just psychologically getting over it and engaging with people again. And the third one, of course, is budgets. Just in general, some people didn't model maybe as much in the budgets to go to stuff because they didn't know how it was going to play out in the beginning of the year. And if you think back in November, December, January, when people were finalizing budgets, we didn't know how COVID was going to, with the Omicron variant, how it was going to go. So I think as you get to more normalization, which is the back half of the year, and then, of course, in 2023, I think that you're going to see more normalized. So in terms of how that impacts the business, again, it really doesn't. Because in the end, again, the balloon, whether they come in person or virtual, doesn't matter. A reg is a reg, an attendee, or if it counts as attending and there's a no-show, we still get paid. Now, and again, so from a registration view, we are seeing more registrations generally with, let's say, let's say you take a mid to large conference, we're seeing more attendees and whether they show up or not, we get paid the same amount basically. And then, you know, again, it's all these are leads and that's why people want to capture that. So if I don't show up, but I register for a conference, if the organization wants to know that you registered and still collect information from you. And again, some of those people generally don't show up to the in-person, they tend to engage virtually if you have a virtual component. So that's why, for us, it doesn't really matter. There's value added either way.

Okay, got it. And then, Billy, just a follow-up for you on the numbers. So moving parts to guidance, which I think you walked through pretty clearly on the call, but the net of it, to me, seemed like revenue pulled forward, but profit guidance became a little bit more back-end loaded. Can you just help me understand that dynamic and why we shouldn't notionally think that that adds some risk to how the year plays out?

Yeah, so there was some revenue that pulled forward because the events did, you know, some of the events we thought were going to push from the first quarter due to Omicron actually ended up happening in the first quarter, which is good. And we also saw, you know, a bounce back begin for in-person events sooner than what we'd originally thought started happening late first quarter as opposed to second quarter. The point forward obviously doesn't impact the full year. The bounce back does obviously impact benefits Q1 and the full year, but you don't see that snowball effect. That's why you don't see the 3.9 turning into a much larger raise the full year. In terms of a change in terms of the backloading profitability, I wouldn't say there was really a change there. We always knew that there was going to be lower profitability starting off the year because, you know, as we talked about in the first quarter, we had, you know, we always have more costs, especially employment-related costs in the first quarter that pulls the margin down. You know, the second quarter increase was, you know, not quite as large because you have the, you know, client conference that pulls down the margin in the quarter. But if you back that out and normalize the margin expansion, we did see a, you know, 3.3 percentage point margin expansion there. But you do see, you know, that margin expansion quarter to quarter is going to increase, going into third quarter and then again in the fourth quarter is going to increase even more because, as I mentioned in my comments, we've gotten to kind of a more of a level ground, so to speak. You know, there's still some, you know, we're still in the recovery phase, but we are starting to see that, you know, as Reggie mentioned, we've got the solution out there that can support all three types of formats of events. So irrespective of where the puck goes here, we feel good there. We've got a customer base that is, they've got an event program now, they feel more comfortable in terms of trying to predict how it's gonna play out. And so they can commit more now. And you just have a customer base that's just more comfortable using technology, especially from a virtual and hybrid perspective. And so we're not gonna have to spend as much and really incrementally spend more on sales. We're not gonna have to spend incredibly more on R&D, customer support, you know, all of the above, you name it. And so that's what's going to allow us to, look, we're still going to invest, don't get me wrong. You know, it's not like you're going to see a hockey stick of, you know, margins going up, you know, from where we are, you know, from an annual perspective. You know, that's why we didn't increase, you know, our full year margin did not change. But yeah, that's really, but again, Our expectations, we knew that was happening, right? Maybe we just didn't do it. I didn't do a good enough job of articulating that to you guys on the last quarter's call.

Nope. I'll just give you one example. Yeah.

I'll just give you one example. Like, for example, in sales, there's less friction now because people are educated. Imagine a year ago when you were doing the sales, they were still, like, virtual. They were still getting used to. They didn't know what was going to be in person. It's just a new paradigm. So it's just the sales cycle changed. took longer and then and and but more importantly to educate them took a lot longer get a hand hold them more so those were just some examples in one area that you know we're going to see some some some ability to leverage a little bit more you can get a little bit more efficient makes sense okay guys i appreciate the color we'll hear now from scott berg with needham

Hey, everybody. This is Michael Rackers. I'm on for Scott today. Could you give us maybe a little bit more color on your recent product innovations and announcements within the Hospitality Cloud? Maybe what you're more excited about, you know, longer term and then with the near-term return to in-person events.

Thank you.

Yeah. So, look, there's a lot of things we're doing on the Hospitality Cloud, and thanks for asking because we tend to focus on the event a lot. Look, first thing is group is coming back. So you're seeing a digitization of group sales in general. So some of the things when we talk about one, you got to remember that hotels are struggling to hire people. My understanding is that there's 20,000 open positions for hotel salespeople, as an example, the most they've ever been in almost probably I'm gonna say in history is my understanding. And so just that means they're higher reliance on technology and hopefully on CVET for the group business. So that's kind of give you a framework. Now look, in terms of some things that we're doing, we're first of all, we're trying to fundamentally engage the meeting planner more so they're using our tool to source. because where the the honey is the bees will come and again the honey is the meeting planners and the bees of course are they are the hotels so first doing things like for example getting more sourcing volume by doing photorealistic 3d that's really going to be a real something really going to help us because By making that experience better when you're in a planner, you're able to really see the venue without visiting it and get a better sense of some venues. You might not have said, I'm not going to visit, but let me see the 3D photo realistic. And I can, you know what, that's maybe a venue I want to consider. And if you have more content, engaging content, they're going to come more. The vendor marketplace, we think over time will of course continue to increase it by getting them to say, I can find other service providers. But some of the other areas that we're really investing is making our Steven supplier network, the UI much more friendly. And then we're also doing things to help increase conversion. So for example, for the hotel salespeople, what we're doing is we're letting do what we call smart custom proposals. So when they do a proposal, remember literally millions of RFP responses are given out by hotels, millions in a year. So if they get a proposal and they got a, they want to do a really nice proposal so they can differentiate them from their, their competitive hotels. So we have a smart custom proposal out there that makes it easier for them to do it and make it look nicer than if I'm doing it. You know, typically I don't want to call it manual because you're using the cement system to respond, but with the custom proposal, it makes the response better. Um, and things that we're integrating into more into the change more. So it's more seamless in our CSN, our path or our room block management. And again, our event diagramming. And we're also doing things like automating responses because they have less salespeople. So we're helping them with less salespeople to find the right leads and to respond them quicker. And again, as I mentioned, with better proposals and faster. So these are some of the things that we're doing, you know, in terms of product innovations, because this is what the, we're looking at what the hotels are asking for. And we know what the problem is not having enough people and to automate more. And we know what the event planners are looking for, which is digitizing that experience more And, you know, so they don't have to interact with salespeople until they have a better idea of what they really want. So that's some of the innovations that we're doing. And we're excited about, you know, about how in-person comes back. That, of course, hits the hospitality cloud more than anything because you need that in-person to drive that business.

Great. Thank you. That was super helpful. Maybe one more quick one before. We run out of time here, but kind of, I guess, how the event mix has shifted, you know, between hybrid and person and virtual. Have there been any shifts in your go-to-market strategy? Or I guess, how are you taking advantage of that from a go-to-market perspective?

The go-to-market hasn't changed tremendously because our go-to-market strategy has now been well over a year, I could say, or maybe not well over a year, but is the total event program. And with a total event program, again, we know that you need some in-person, virtual. And don't forget, when you're planning an in-person event, you're not planning it three or four months in advance. So in 2021, you're already thinking, what's my 22 events going to look like? I'm assuming the pandemic will lessen, and therefore I need it. So mentally, people have been there in 2021, at least a lot of our customers. If you think of 2020, it was all virtual, virtual, virtual. Maybe the first quarter was all virtual, virtual. But you started getting into 21 later on. They're thinking, my big conference in 22, which they're They're probably negotiating and contracting where they already have with a venue. They're making that decision. So because of that, we've been pushing all three and say, we can help you in all three. And that's basically what our go-to-market strategy has been for well over 12 months. So I don't think there's a huge shift, except there's less friction, as we said, because people are now comfortable virtual. They see in-person coming back and they have confidence in their program. And because of that, they're more willing to commit. And they're also seeing that sometimes it's hard to find venues right now because everyone's kind of jamming their backlog in right now. So that's kind of like, we better get all our services, our technology, get everything lined up. And again, with our competition, their point solutions, they can't support the total event program, which positions as well. But our go-to-market strategy is pretty state, pretty consistent. And we are a little bit pushing our strength and in-person in particular that our virtual only competitors who were the cat's meow in 2020 in the beginning of the first half of 21. Now I think that's showing the weakness. So in the end, we're doing things like our in-person lunches where we used to do our product seminars. We talked about that for years. We did hundreds of those a year that just had that in-person lunch and learn. Trade shows, we're going to 125 of them ourselves because trade shows are blossoming and we're seeing tons of trade shows where you're getting One trade show that's coming up, hopefully I'm going to be able to make it in Europe. It's one of the biggest ones of the industry. I think they have 12,000 people or 10,000 people coming to it globally. So you're starting to see that come back. So we'll have a little bit of that more in our budget, which we did. But we love that because, of course, events, in-person events is something we love to see because that certainly helps our business.

Great. Thank you. One last question. I'm sorry. Go ahead. I think we have one last caller or analyst to cover.

Of course. That will be from Morgan Stanley's Josh Baer.

Great. Thank you for the question. You mentioned several virtual ARR expansions. Just hoping to understand a little bit more about that. How big is virtual ARR and how are you thinking about the durability of the virtual expansions over time?

Yeah, Josh, good question. I mean, look, virtual is, again, it's like a balloon. So as virtual may go down in some where you might have had a virtual event, and then now it's become in-person or hybrid. So you're getting more on that side. But I think virtual is definitely durable. It's here to stay. It's definitely a core part of everyone's you know, total event program, because, you know, you might want to do it for cost-effective sake, engage an audience that are, you know, far away, could be just a two-hour or four-hour event where people aren't going to fly in, which creates new use cases of events. And again, this year-round engagement is an exciting thing where you can engage them, again, not just during the event, but in person and virtual. So it's always going to be, you know, a critical part of events. And this is really what increased our TAM, because what's making CMOs think about, and CEOs, It says that all of a sudden they really have any, they have a tool for any way they want to engage with all those stakeholders. That can be, you know, more cost effective or let's, let's, or I shouldn't say, I think in-person or cost effective, but it's a more of investment, but you get that in-depth relationship. So I think all of them are going to be around and that, and then you want that flexibility and the customers don't even necessarily know their mix. I can tell you us as a company that does lots of events, we're still working through our mix and just kind of say, We'll just see how it goes. Even though we put our, like, for example, next year, our customer conference, when we have it, we're, we're assuming we're going to grow it. You know, we're going to continue to grow the in-person, but the goal is to grow both the in-person and the, and the virtual. And so I think, um, virtual ARR can, you know, range from, from just 5,000 a year for a customer. You know, it can range to a million and a half dollars a year. But I think, you know, it's going to continue to be a core part. But I think the emphasis on it is a little less because right now, just the way kind of things in life happen, you had all in person. Then it went all virtual. Now it's all of a sudden it's like we had an index on in person, but it's going to end up being a balance. And again, we're there for that balance. And look, just kind of as we wrap up, you know, look, I think our opportunity now is big because, look, Return in person plays to our strength and plays to the one platform and the companies that can do all three. And that includes virtual, of course. And then the other thing is a new way to engage attendees virtual, you know, and through video. And then this whole thing about expanding our ecosystem. I think all those things all play towards where we're hopefully headed. But if it's not, then we're there, wherever the balloon, wherever you want to squeeze it, we're there for that customer and for the whole ecosystem.

And we do have time for one or two more questions.

We'll hear from Credit Suisse, Fred Lee. Okay.

Hey, guys. Very nice start to the year. And knock on some wood, but it looks like things are getting back on track. DBNR expanded dramatically in the quarter. I was wondering if you could talk a little bit about the key drivers behind that and whether you think this is a sustainable trend based on your current knowledge.

Yeah, Fred, I... Apologize, you said our NDRR, right? You kind of broke up a little NDRR.

Yeah, NDRR. Exactly. Okay, good.

Just want to make sure we're talking about the right thing. Look, I think when we talked about the increases for NDRR in the past few periods, it's been very event cloud-centric because, you know, the hospitality cloud was, you know, lagging from a recovery perspective relative to the event cloud. um but we're starting to see with the return of in-person events we are starting to see our our hotel customers um starting to reinvest in their groups and part of their business and so we are starting to see yeah we didn't don't get me wrong we saw a nice pickup in ndrr for the event cloud as we've been seeing for several quarters now um but we definitely saw a a larger than usual step up in the hospitality cloud they're effectively you know call it three to four quarters behind where the event cloud was. So I think across the board, it's more of the same in terms of in the event cloud. We continue to see good adoption of the attendee hub. We're seeing the spend increasing or multiplying at our clients there as opposed to being cannibalized. It's definitely increasing spend there. As in-person events begin to return, we're seeing increasing spend on onsite as well, but we're still holding on to Look, don't get me wrong, there are gonna be times where there's gonna be less spend on attendee hub, but it's more than being offset by the higher spend on the onsite side. So that continues, but down on the hospitality side, we're seeing that, as Reggie mentioned, the bounce back recovery, where we're getting the recovery spend from those hotel clients to start to increase more spend on the group business side. But look, I think longer term, we had spoken about approaching or being around 115% from a net dollar retention rate perspective. Again, that's longer term. Don't think this year. But that's all going to come from, our clients are going to want one source of truth, one platform for where they go, because things are going to be really complicated. They're going to want things centralized in one place. And our platforms can be the platform where they can do that. Yeah, just one comment. Again, we had 100% eight was what we did at peak in 2019 or i should say peak just in 2019 that's what it was and so we're we're excited about how it's you know how we've got starting to get back to you know basically where we were in 2019. the one thing i just want to tell you from strategic why this is important is look as billy mentioned it's one platform and now people as they have to do all three types of events they're going to they're going to be able to they're going to buy more of our modules and be more likely to buy our full platform because they have to be prepared to do all three and that's really the strategic a reason why we're excited about NDR kind of going up because it plays again to our thesis that one platform that has to do all three different models and so therefore you need more modules and you're more likely in the long term to stick with us the more modules that you get because it just makes us stickier and because you've invested more into the business.

And our final question today will be from John Roy with Water Tower Research.

Great, thanks. Hey, so Reggie,

kind of maybe sum up what really is driving your confidence in the rest of the year obviously there's some interesting things in the macro environment so what is really driving it for the rest of the year for you yeah so john good question so look what i'm going to give a quick history don't forget about our beat and raise history so when we say something we've had a great record when we were public before we had 11 straight quarters of beat and raise i look at the way we looked at our confidence in our financials. Just think where we were in April of 2021 and all the changes in the market. I mean, look how we, when we, even though we weren't public per se, we put out our numbers to the public market back at the end of April or in May. And so our track record has been, in my view, Q2 of 2021, Q3 of 21, Q4 of course, and now this quarter. So we've already started to hopefully establish a track record with many of the investors that have been following us since we put out our public numbers. um in q2 of 21. so look so we have that track record i would say in in the end i think we went through that difficult time which was in our view a much more difficult time uh than we've ever had ever in terms of projecting i think that you know that that that gives us tell you how we look at things and the reason we're confident in the future is just simple we we have gone through some tough times things are coming back to our strength people are feeling more comfortable with all three methodologies or all three formats, and we can service all of them. And that look, we have experienced management team that's weathered the storm. We've shown that we can predict things, even though it's a pretty, you know, a difficult environment. You know, we do have, you know, our low cost, you know, our efficiency in terms of our people with having a strong India presence and the way we're able to work with our whole team. And finally, I think companies are really believing the power of live engagement through events. They're really seeing how events might be their number one or number two way of reaching their customers or their employees. And it's really a channel that delivers. And I think now as they're getting used to it and seeing it compared to their channels, that they'll continue to invest and they're going to want one kind of one platform. And we believe as we get more and more integrated, people are going to realize that it just makes sense to put everything on one place if you can. But this is something now that you need a software. You can't do it with your back end technology, you know, your IT department or use point solutions or use other softwares that are jimming in to do events like a lot of universities do or associations do. And I think all that leads to, to helping us with our solution. But look, we still have, of course, we're still not out of the pandemic. We still have different variants. We have some macroeconomic with all that, but still we're positioned well and we feel comfortable where we are. So with that, I think that was the last question. We appreciate everyone joining our call and thank you all very much.

And again, that does conclude this C-VENT first quarter 2022 earnings conference call. Thank you all for joining us. You may now disconnect.