Progress Software Corporation

Q4 2021 Earnings Conference Call

1/18/2022

spk_0: welcome to the progress software corporation to for twenty twenty one earnings call my name's darlene i'll be or operator for today's call it this time all participants are analyst and only mode later we will conduct a question and answer stack them during the question and answer definitely have a question for star than one and your touch tone phone oh now turn call
spk_1: have you mike mitchell came mike you may begin
spk_2: oh okay thank you darryl good afternoon everyone and thanks for joining us for progress software's fiscal fourth quarter twenty twenty one financial results conference call with us today as you'll get scooped up president and chief executive officer in anthony folger chief financial officer before we get started i'd like to remind you that during this call we will discuss our outlook for future financial and operating performance cooked strategies capital allocation product plants costs initiatives are integration of camp the impact of the covert eighteen pandemic on our business and other information that might be considered forward looking this are forward looking information represents progress offers outlook and guidance only as of today and a subject to risks and uncertainties for a description of the risk factors that may affect our results please refer to our as he see filings in particular the sectional catch and risk factors in our most recent form tank you progress software as zooms no obligation to update the forward looking statements included in this call whether a result of new developments or otherwise additionally on this call all the financial figures we discuss or non gap measures unless otherwise indicated you can find a reconciliation of these non gaap financial measures to the most directly comparable gap numbers in our financial results press release which was issued after the market closed today and is also available on our website this document can't contains the full details of our financial results for the fiscal fourth quarter of twenty twenty one and the full fiscal year twenty twenty one and i recommend you reference it for specific details we also have prepared a presentation that contain supplemental data for our fourth quarter and for fiscal year results providing highlights and additional financial metrics but the earnings release and this presentation are available in your best relations section of our website at investors that progress dot com today's conference call will be recorded in it's entirety and webcast a webcast replay will be available on the investor relations section of our website
spk_3: i was at iowa now turn it over tv august
spk_4: thank you mike
spk_5: hello everyone and welcome
spk_2: i'm very excited to be here today to discuss our results for the fourth quarter of fiscal twenty twenty one the cast don't the one of the best the or seller for profit
spk_5: i will also share some highlight of the full year and then talk about the fitness a hypothetical strategy thus far and i will wrap without looking forward to that get started following three straight quarters in the to beat or estimates and with guide them we delivered another standout quarter a fourth quarter results exceeded guidance for metrics and did so without the benefit of timing of revenue recognition or one time deal
spk_2: the results reflect the continued success of a book market sweaty and a strong demand and by
spk_5: or que for and typical twenty twenty one outperforming was evident across the board and go to the all of our product line and across all geography we benefited from the generally strong economy as well as fond of a new ip budget of our customers for example a global financial organization significantly expanded it's use of chef with his seven pseudo expansion deal and politik doubles goes the largest deal in it's history citing me be plug but new proceeding including of auction winning customers across industries such as manufacturing retail and planet and what's a boat with advantage of opportunities presented by customer seeking alternative network monitoring solution enabling it to build on the positive momentum from prior quarters this storm unprecedented demand an excellent sales execution along with a contribution of cap built on a good friend for analyzed the cutting them for the eye on which grew by over twelve percent this squad
spk_2: the exit the bigger with four hundred eighty six million dollars and below and our net dollar retention rate with again above one hundred percent as customer remained committed to our products and in many cases expanded they use
spk_5: another to for highlight was on acquisition of temp in the them can provide us with the best application experience and load balancing caught us on the market along with a long list of bleak customers and spend them are already deep bench of talented engineers and salespeople the temp integration is to a great start and without disrupting camps business we achieve significant integration milestone in the first thirty days after closing i'm confident that as with ipswich and chef before it camp will exceed expectations on that you punish and for our shareholders as excited as we are about camp were already looking forward to repeating the success or total good strategy by executing on next opportunity to create and return meaningful value to our shelters let me know share some details about what made f y twenty one strong and in many ways unprecedented year of success for progress swag simple twenty one we saw sustained level of increase demand for products our sales and product been seized the opportunity presented by this includes the man
spk_4: enabling us to be delayed guidance as quarter
spk_5: i'm a businessman was indeed pent up some coke but by offering the best products to develop deploy and managed business applications in an ever changing business climate we will positions to capitalize on that demand and there's demands remain strong into the new year the go to twenty twenty one was indeed an extraordinary year while open it remains a workhorse and the customers who uses likes to be loyal and sticky
spk_6: we saw slump across all forgot that my wins
spk_5: for chef data direct like snippy what's the both the letting dev tools and others none of us would have been possible without an amazing team the lingering pandemic has been extremely challenging for everyone
spk_4: but a fraud this or people have worked hard with dedication and commitment excel in the face ongoing adversity the talent a promising in a highly motivated i'm highly effective and i could not be prouder of them for the performance and twenty twenty one
spk_5: this dedication plastinated to are being recognized as an employer of choice around the globe for the first time in our history or magazine named from this as one of america's best mid sized employers
spk_7: and again name that the best company to work for in bulgaria where we have nearly five hundred employees
spk_5: the boston globe amd austin business journal book for father's on it's on the exclusive best places to organise and he didn't want to study and the twenty twenty one american business once including a gold award for a corporate social responsibility boca let me not reflect a bit on what they accomplished as we launched our total good strategy three years ago we launched this ambitious strategy with the goal of increasing shareholder value so highly disciplined am in a strategy the same time we committed to spending are highly profitable for businesses while remaining intensely focused on operational essence with the objective of doubling a revenue in five years to date the i had a flat on executing a couple books that it three years into it or revenues up approximately sixty percent and dps has increased nearly seventy percent when we lost strategy or target was to sustain operating margin above thirty five percent with the goal of includes emergence as be scaled up a business to acquisitions
spk_4: we have continued to exceed thirty five percent margin since then including t them operating margins of forty percent and forth twenty twenty and forty one percent in f y twenty one
spk_5: both of these years were aided by comics impact on spending but with still forecasting margins of thirty nine percent of the skull twenty twenty there aren't many profit companies were able to balance between goals of going to happen and boobs so offered me as effectively as we have shown in addition to going on revenue that martin or acquisitions have also made up for or even more robust today the thought to provide the best of to develop deploy and manage high impact applications and experiences what's the gold from ipswich ap english and flow mon and load master which came from the companionship are the best in class offerings the manage and ensure the delivery of application expensive they provide full stack of the ability and automate optimal performance of modern application
spk_2: chef is the leading brought up for that often death second being used by going number of five customers to secure and automate the deployment of the cloud and on premise for starters
spk_5: and the secure and highly performing did a movement capability of if such as move it complement the high performance secure and reliable data access capabilities of our data direct it
spk_4: enabling customers to access and move data from anywhere to and well or to let a contenders you i been due to innovate to lead the market in making it easy for developers to build amazing views that experiences
spk_5: an open it's continues to power business applications of more than one thousand and five hundred i have least and thousands of other and that's it our product portfolio has never been stronger or more relevant than it is today a good what what a book strategy remains acquiring the businesses at the right thanks like strangely discipline and i am in a study returns are not required pump action exceeded even our most optimistic projections and off a poof point that be can deliver returned that significantly exceed our cost of capital
spk_4: and the well on our way with camp to achieving the same as us
spk_5: the i'm in a market for mean sleep onset and were actively seeking opportunities to put capital to work even independent hyper competitive market a corporate development and peace to bet dozens of candidate is quarter we believe the best way to create solid returns for shareholders is to keep making disciplined acquisitions while at the same time leveraging operational synergies among the product technology and customers me a now moving on to fifty or twenty two we expect the man to continue to be robust well off to a good start as a us must continue to investigate existing congress infrastructure and of the willingness and the capacity to do so
spk_4: as always the grateful to a loyal customers for shareholders and apply employees are the hard work and dedication especially in these difficult times
spk_5: of anthony will explain we remain very optimistic about our future prospects
spk_8: with that i will turn it on anthony for the financial overview and off all forward outlook
spk_9: anthony
spk_2: it can't you guess
spk_5: good afternoon everyone pay for joining our call
spk_2: as i'm sure you heard he get his remarks were very pleased with our performance in the fourth quarter
spk_9: the results exceeding the high end of our guidance ranges on every financial metric we're also delighted to have closed the acquisition of camp and we're pleased with the progress of the integration to date
spk_2: thirty now of the numbers and starting on the top line our revenue for the quarter of one hundred and forty three point seven million dollars represents eleven percent growth over the prior year
spk_5: reflecting stronger than anticipated demand of are open edge data direct chef and dev tools products in addition to strong operating results we close the camp acquisition as planned
spk_2: ensuring camps contribution to queue for with in line with our expectations
spk_9: for the full year revenue of five hundred and fifty seven point three million represents twenty two percent growth compared to two thousand and twenty this year over year growth is comprised of a full year revenue contribution from chef a one month revenue contribution from camp
spk_2: and growth across multiple other product lines most notably open edge consistent with our growth in revenue we also saw growth in a rr throughout two thousand and twenty one closing the year with four hundred and eighty six million of hey rr which represents twelve percent growth on a year over year basis and three point four percent growth on a pro forma year over year basis
spk_9: and to be clear the pro forma results include camp in both periods
spk_2: in addition or net retention rates showed continued straight in the fourth quarter once again exceeding one hundred percent
spk_9: with customer retention rates remaining consistently strong throughout the year
spk_2: and with an improved demand environment fueling growth across our portfolio we're thrilled with our topline results for two thousand and twenty one
spk_10: what's more
spk_11: as your guess mentioned in his remarks
spk_2: we remain optimistic that some of this increase demand will continue into two thousand and twenty two more on that a bit turning to expenses total cost and operating expenses were ninety two million dollars for the quarter up fourteen percent over the year ago quarter and three hundred and twenty eight million dollars for the full year up twenty percent compared to two thousand and twenty for the quarter the increase in costs and operating expenses was driven by an increase in variable expense associated with our top line over performance
spk_9: combined with an increase in our cost base resulting from the acquisition of camp
spk_2: for the full year the increase in costs and operating expenses was driven by a full year of activity for chef in one month of activity for camp
spk_9: as well as increase variable expense associated with are better than expected topline performance
spk_2: operating income for the quarter was fifty two million dollars for an operating margin of thirty six percent compared to forty eight million dollars in the year ago quarter for the full year operating income was two hundred and twenty nine million dollars for an operating margin of forty one percent that's an increase of forty six million dollars or one hundred days is points compared to two thousand and twenty
spk_9: earnings per share when ninety two cents for the quarter
spk_2: an improvement of one cent compared to the year ago quarter and for the full year earnings per share was three dollars and eighty seven cents an increase of seventy eight cents
spk_9: or twenty five percent compared to two thousand and twenty
spk_2: moving on now to a few balance sheet and cash flow items we ended the year with one hundred and fifty seven million dollars in cash cash equivalents in short term investments
spk_9: and approximately one hundred million in untapped capacity under our evolving line of credit for total liquidity of two hundred and fifty seven million dollars in addition we had a adept balance of six hundred and twenty seven million dollars which is comprised of our turn loan in the amount of two hundred and sixty seven million and three hundred and sixty million in convertible notes dsl for the quarter with sixty days compared to fifty four days in the fourth quarter of two thousand and twenty
spk_2: the increase in dsl was driven by the timing of dealings with much of our bellies upside coming very late in the corner deferred revenue was two hundred and fifty two million dollars at the end of the fourth quarter up fifty nine million from a year ago reflecting the addition of comes to photograph new and an increase in non camp related to programming adjusted free cash flow is forty two point four million for the quarter up for percent to compared to the year ago quarter and for the full year adjusted free cash flow was one hundred and seventy nine million dollars that's an increase of twenty six percent compared to two thousand and twenty
spk_9: we did not repurchase any stock during the fourth quarter
spk_2: as a result at the end of two for we had one hundred and fifty five million dollars remaining under our current share repurchase authorization
spk_9: now i'd like to turn to our outlook for key one and the full year two thousand and twenty two
spk_2: when considering our outlook it's important to keep in mind the following first we expect exchange rates to have a negative impact on our two thousand and twenty two outlook when compared to two thousand and twenty one we estimate that the negative impact on our revenue is approximately seven point five million dollars
spk_12: and the negative impact on our earnings is approximately three cents per share
spk_13: next has yogesh highlighted two thousand and twenty one was a year of meaningful part wine growth across virtually all of our product lines we recognize that some of the demand driving this growth was pent up coded related two thousand and twenty demand
spk_9: but not all of it was so for two thousand and twenty two
spk_2: although we believe that pent up demand has dissipated we do expect continued strength the demand environment resulting in flight growth from are non camp products
spk_9: the been against are unusually strong two thousand and twenty one
spk_2: next our expectations for camp and camps contribution to two thousand and twenty two have remained largely unchanged from our earlier estimates in that we anticipate a full year revenue contribution of nearly seventy million dollars this equates to more than sixty million dollars of incremental revenue compared to camps two thousand and twenty one contribution also as previously mentioned we expect the integration of camp to continue throughout two thousand and twenty two as a result we expect to recognize cost synergies gradually during the year and to exit the year with an operating margin contribution from camp of at least forty percent finally when developing our outlook we assumed that some of our expenses related to travel events and other in person activities will increase in the second half of two thousand and twenty two as coded restriction these and conditions begin to improve with that for the first quarter of two thousand and twenty two we expect revenue between one hundred and thirty nine and one hundred and forty two million this includes a full quarter contribution from camp and earnings per share of between eighty tree and eighty five cents for the full year two thousand and twenty two we expect revenue of between six hundred and five and six hundred and fifty million dollars representing nine to eleven percent growth over two thousand and twenty one this range reflects the previously mentioned negative impact from foreign exchange of seven point five million dollars we anticipated operating margin for the year of approximately thirty nine percent with a slight headwind from the camp integration which will improve through the course of the year as i previously noted we are projecting adjusted free cash flow of between one hundred and eighty five and one hundred and ninety million dollars and we expect earnings per share can be between three dollars and ninety five and four dollars and five cents again this range reflects the previously mentioned negative impact from foreign exchange of three cents per share our guidance for full year he ps assumes a tax rate of twenty to twenty one percent the repurchase of fifty million dollars in progress shares and approximately forty four point seven million shares outstanding our share buyback activity in two thousand and twenty two is meant to address dilution from our equity plans
spk_9: and while we believe that share buybacks in dividends can provide shareholders with a good return
spk_2: our i'm in a track record over the past three years has delivered superior returns for our shareholders and for that reason disciplined a creative and monday
spk_9: is the top capital allocation priority of our total growth strategy in closing had like to reiterate that we're thrilled with our key for performance the acquisition and integration of camp and our outlook for two thousand and twenty two
spk_0: as guess outlined we believe we are well positioned operationally and financially to continue executing or total growth strategy to create meaningful value for our shareholders
spk_14: with that darryl let's open the call for q and it and if anyone has a question you can press car that wine and your touchdown power once again if you have a question it's star than one on your cat town phone and our first question comes from if it's i kid rock go ahead a tie
spk_5: ah thanks a couple questions for your guess now anthony are so was your your guess arm
spk_15: maybe i'm a big they stand by it's like about it the man and climate still being very strong ah maybe you could talk about two things number one i'm always on khan impacting the man i just got out of curiosity a it's been i'm innocent people been hit by days i guess it's a question of whether are you seeing a customer slow down
spk_5: into a date move forward just because people are missing i'm not around ah and then second night maybe you can talk about the reading a synergism camp i would assume that a lot of the private there is cost revenge for us but maybe to talk about across the line up the clinic is there how far are down the road are you and exploiting those
spk_15: at m if i thanks so much and and great to have heavy on the cog up regarding the first ah
spk_5: yeah no question about
spk_16: add on he caught by a we actually right now i'm not seeing any meaningful change in the business trajectory you're right in all obviously lots of people are getting hit and then people out of pocket that sometimes slows things down but so far we continue to see good momentum in ah business with there
spk_5: nothing in our business that makes us believe that that are on a drawn have been are basically have and a negative impact on meaningful negative impact on at this point i'm a so again you know in a guy who knows which which were devoted high and and how the world in kings of them and whether it has a more serious impact of next several weeks or not but so far so good and and i think we're really pleased with what we've seen so far in in the first six week or sixty six weeks or stop i'm switching over to the up you can camping be great and then and the opportunity to costs sell i mean as as as you know and and as yourself highlighted i'd our approach to this emanate and the total both strategy is an extremely disciplined approach where we are focused on expense energies as the primary driver of shareholder value nucleus and so that is where we are heavily focused on it is correct you are light and pointing out that of course camp products have some interesting synergies and themselves potentially selling together with things like what's the gold and ah and and flamanville example and so on but that much
spk_14: further down the road and and from our perspective we want to make sure that we execute on the ah integration and that we make sure that the people come on board that the us to continue to move forward that i would and some great don't suffer that the business continues to function well why we put together
spk_11: the expense energy that we need to put together in place as we integrate those businesses so i would say it i like now we are not planning any meaningful l w synergies to costs sell our between those products of mars
spk_8: got a very good the den of follow for you anthony
spk_9: i'm maybe it's me they'd feel like a sommelier are piloting i'm an a's or a potentially i'm more immediate now way for you to continue to drive growth which makes sense i guess my question is on the market as as contract quite substantially especially in growth names and and technology are you getting a stance that from your discussions with
spk_2: potential targets that there is now i'm a greater flexibility open air same any eagerness perhaps of the right word to our do something just give him how strong the correction has been a that are already worked it's way into the mindset of potential sellers
spk_14: i yeah you know it it's hard to say it i i'm you know we i would say that the pipeline continues to be very robust and him we are actively manage and opportunities just on a on continual basis
spk_0: on and so there's a lot of activity out there but yeah i think you know for sure that the the correction in the public markets i think ultimately will trickle to some of the private company evaluations ah i'm you know and frankly we we think that to the extent rates rise a little bit that may tilt the competitive dynamic a little bit
spk_17: back towards us mom in a money has been so cheap for so long and it allowed in a multiples to really ah to put on a lot higher than the had been previously on sometimes to a place where we're we're not willing to go but i think you know ah we're feeling pretty pretty optimistic about in a hard this may a present for us in in twenty two and beyond
spk_5: very good the like i think if and next question come from and long delayed can a day for take my question ah you'll guess i i i wanted to touch on your your remarks about the strong demand environments environment sustaining up i guess tabitha given what we've seen in the markets where with expectation for software company it the you feel it's broader software a general where demand of holding up or more infrastructure where were you guys are focused or at any any sense from your conversations with customers are whether or not it is a more they played progress dynamic a you know how have a thank you for that question i actually think that that the about you're right i think not every software companies the same can sell you know from from our perspective our conversation that primarily focused on and infrastructure related a discussions
spk_18: cam and what we're seeing is that the product offering that we now have which does cover the whole the broader dive off cycle off develop deploy and manage aiding including really strong offerings application experience phenomenal offering for the last and deaths that up and on me
spk_17: the products for building and and delivering wonderful experience of them applications ah digitally i think those all those things are really resonating with our customers and we are thing demand for that i think that you know whether comes to patent applications we really aren't a good you know sort of indicator of of whether those things are seeing equally good demand are softer demands i can't really speak to that but from our perspective yeah we're seeing them and continue we're not seeing really other them as as anthony mention in old some of the covert pent up demand or than that changing rest of it to their that the man
spk_4: and bomb and seems to be and appears to be really strong so will be confident about a bird the way or twenty two is shaping up and of and i feel really good about a business
spk_5: got got it and an electric imagine chefs in the largest the own history if if i heard correctly what would you would you associate that with it being part of progress and perhaps your salesforce and your scale help and a deliver those kind of hired the author it is or or or this more just day a large cut them customer came in and and been the opposite pick pick the i delivered a large as like citing any any color
spk_2: terms of maybe some other drivers that got your third to that level again just to clarify that the chef the was a very large deal and it with his seven figure expansion but it was not the largest been and shaft history the largest deal in in our one of our products history with and a death to products which is pathetic difficult products for building great you why but and which was also another seventeen you but but but the chef
spk_4: let me talk though howler to the to the clock such a question about you know how this came about it you know one of the things that is happening as we have continued to include the capabilities of chef both and dem often deaths tech got ah this with a large financial institution of the financial institution has been a user of chef we were able to deliver
spk_17: we're new capabilities that allowed them to come up with new use cases that they could used across the a global enterprise and and and thereby you know have a really really large seven for their deal with us or for proper form for chef
spk_2: i'm a good chef of them this on his own i don't know i think one of the things that we have done is actually put more resources on the product side in in chef than even chef had by itself a and we've been able to do that because we have shifted significant amount those costs to india and and so a while the costs are significantly less the after rule number of people on the product is significantly greater and we have been able to serve the enterprise customers needs as well as the needs of the open source community really well by doing so and and i think i mentioned in the last quarter's paul that you know when we had our chef farms and there was an amazing the positive reaction from across the board or from my past and be open source community so i think it is that focused investment and that focused effort around solving enterprise customers problems as well as you're staying focused on the open source community as well that ammunition and so does really well on chef and i am i i continue to be extremely excited about issues of prospects as well that got in a laugh of like it's they get one for for anthony ah revenue growth next year eight to ten percent or edit or errors not really know that you guys guide our but any any way to think about whether or not their head when feel that would look move that number of higher or lower than that that revenue raise that you guys already put out yeah a it it's ah you are correct we're not we're not guiding on a are are yet at this point i'm but you know we've
spk_17: we put out the pro forma a our our numbers each quarter for the past year so
spk_0: in on the slide deck that with with that we put out with the the earnings release there's heard any quarter trend in there now
spk_19: he and i guess what i would say is that the the friend we've seen generally in a are all her is ben you know some growth happened to the right and it's been generally ah pretty tightly aligned to to what we've seen on revenue i would say if anything revenue p n b a little more erratic because we may land some multi year deals with you know some of our subscription products like chef or data connect but absent that i would expect to the move in in a relatively consistent kremlin's
spk_5: perfect really really push it out thanks a lot guys can
spk_4: thanks
spk_5: and our next question comes from pendulum or go ahead oh great i guys are congrats on the corner the i aggression on on on future acquisitions i guess it's it's a seems like a devaluation reset might help you but as is you look forward and mean is there any particular area of focus to this year i'm in observable these is one area i guess you have been getting a lot of assets is that something that you might double down
spk_2: and on or is that kind of the dev devil's side what what what are a couple of areas that you're looking at
spk_5: so we have been to limp you know the reality is that the of in all across an entire portfolio we continue to look for opportunities to either consolidate or by i'll i'll find other assets that an argument with to what we have the you're right you know that in a out of the free are acquisitions whether it was the ipswich about money
spk_4: half years the though or or at camp as it's just a couple of months ago were both in the of ability face
spk_5: a d up in a chef was obviously the dev often does suck up space and and so i don't wanna say we're looking at only one up in one or two spots we really are looking at the entire life cycle for me develop deploy and manage i tell whether it is additional data off deaths that often and related assets
spk_2: and and companies that would help them whether they did application development our front end development tools so in the back and infrastructure data movement data is one of the areas where by the way we don't talk about it too much but movie that came to progress through the ipswich app acquisition
spk_20: as bolstered are offering them both in a we used to have and still do the world's best in l a real time data access solution with the direct ah you know it is literally the be had gold standard in the market and then the we acquired move it to ipswich and
spk_21: i'm and that basically gave us the ability to securely move information in both ah and and and there for now we have bought real time access to data up to the a direct and and be you know both moving update on a periodic basis to move it so data in another area with the foundation of analytics into the foundation of really any work that doesn't
spk_5: as trying to do today so week we see us continue to work across all of these areas within the infrastructure a software space whether it is the opposite of ability side and and application expedient the delivery side whether to the dev off the that off a piece whether it is the data access and data integration peace or whether to the actual a
spk_2: application development and deployment of the platform itself and that are lots of athletes as you said i'm a in and so this opportunistic aspect to it as well pendulum by whatever whatever shows up well if you know as long as it makes them at that but the key for us even more than the specific domain
spk_10: is is really about the characteristics related to how strong the product is what the customer base like what a recurring revenue how what's their retention rate i mean as as as you know i'd meet with in an f y twenty one we had a net prevention rate of over one hundred percent like will be one to sustain extremely high that weekend
spk_22: rates some so so we look for really strong businesses to be honest even more so than specific moments
spk_9: under said thank you for that one for anthony on that retention rate point and and and little little bit nitpicking but but it's get your attention they did you have an elevated levels pretty good to see above hundred hundred sam but sequentially when i look at it it would down dick a little bit now you're bearing in camp i guess
spk_2: yes so is that the it a function of camp feet if we if we remove camp how has been the can of the retention from you'd have to take you to queue for for the poor business if if you can to talk about that or as well as how has gross trunk and have held up
spk_9: yeah yeah sure thanks pendulum arm you know i i think camp came over and the your guess mentioned that you know roughly added forty million of a are are into the mix
spk_2: and when i look at ah
spk_21: you know where
spk_0: where are the sort of the movement was you're right it was you know i'm not much movement quarter to quarter ah camp might have slightly lower arm natal retention rate than the rest of our business
spk_23: and you know we knew this coming in we understood that elam you know from a gross perspective they were probably and not in the low eighties and net perspective were probably in the high eighties
spk_5: you know and i think that was very similar to what we saw with ipswich when we acquired ipswich back in two thousand and nineteen can we do that as an opportunity
spk_24: so you know yet if there might be you know when ever so slight take down when you add camp into the mix but we don't expect that expect that it's gonna be deleted over the long run we think we're going to be able to drive
spk_5: that retention rate for camp up get up to the same levels were ipswich and lot of other other products are ah and weren't weren't like your guess at one hundred percent is great and and you know going to continue that to try to make right investments to maintain that
spk_4: got it thank you very much
spk_23: darren next question comes from and yet soderstrom go hit on you hi everyone thank you for taking my question and their congratulations on another another great quarter a lot of good question is asked i'm ready about just curious about price increases have you done it a pleasant quizzes as the will be to do that or is it all the mandalay them we're
spk_16: though on yeah thank you love end up a week you know the soul as as you're aware
spk_5: many of our customers with many of our customers them they're on fact you have a little bit of a cost of living back of increase type of first structure built been ah but a know the city i type of an increase but but up in jungle we have not had price increases we have not done price increases
spk_24: across a portfolio is that an opportunity to do so i did you not to us right now the the way we see our ability to continue to drive growth is to offer better products and and and continue to do better than for our customers better and local broader need that they have and and expand that way
spk_5: we don't see fighting as a very important pool because among other things you know that an infrequent tool in a you that sometime it look makes you look good for short time with the question of can be provides sustained growth but we always look for opportunities if we can do that in a sustained weights or will willing to do that but in jungle week we have not done price increases and and right now we're not contemplating
spk_23: okay thank you and given her is server not a different and markets with anything that stood out here in terms of them
spk_25: and is a prices among your your customers and a specific and market
spk_0: not really i mean i think we've we've felt really good at and markets across the board all a geographer geography is globally did well
spk_26: business a strong across all of our product that means it's been in a week we are seeing strength that is not limited to just one or two things and so that that's what makes of confident about twenty twenty two as well was on your nothing nothing specific to highlight you know it's a i think it is just strong execution on our part solid demand across the board
spk_5: a really really great execution by the province team on multiple fronts so you know steady as she goes
spk_16: on a well thank you know how for me thank you
spk_5: thank you on
spk_27: and or next question comes from tyler right go ahead tyler
spk_15: hi this is though young came on for a cat iraqi thank you for taking our question and through or hair growth and contained the come out on the higher end of where had been you know managing the that that's always wondering if he could comment on and a present for execution of impact from a poor for time if they're like that
spk_28: employees they said the stray that you've seen over the past twelve months is really durable so if you could give us any examples that has helped you internally than sir and what the pull forward versus what sustainable about be really helpful thank you
spk_29: so let me start with a little bit and than anthony can can potentially at for that as well i'm so we did not have any foot forward to see her
spk_9: we we actually few really good about the quality of our business this year
spk_30: what we did have though is some pent up demand from twenty twenty third was really push later from twenty twenty to twenty twenty one that help with the organic growth to some degree oh but then him in additional that we also saw general strong demand the didn't have long demand will continue to see
spk_9: and we expect to continue to see obviously the point twenty push forward of of ovid related pent up demand i think that is largely behind us so so we've been really pleased with the way ours organization have been very disciplined the we do not to put forward that we did not to put forward this year
spk_12: and and and and as i said we did not have anything i think he i even have that him up the bedroom lot of we did not have any and he put forward or any large deals being in a boat from you want a queue for anything like that eighty has been a really strong eddie disciplined execution
spk_9: got it and then would agree with that guy sorry
spk_2: now just gonna say i do believe me i would add though is that i'm
spk_26: you know it your guess is is dead on in terms of the the the twenty twenty coded demand that sort of
spk_4: came in to twenty one earlier and year
spk_16: i'm you know when we talk about sort of
spk_5: ah sustaining a strong demand environment and seen some growth ahead and two thousand twenty two you know it's it's like growth palm and for progress even ethics like growth is is is a pretty big statement in i mean to i've been here i don't think the the outlook on an organic perspective has been strong
spk_31: and i know it has not been the strong
spk_5: ah you know suffer a business that may have been killed and more in on the negative side from the growth perspective the past couple years to be out looking something even slightly positive answer as an important move we think so we're we're optimistic about it
spk_4: okay thank you and then i have wanted to i double click on fire earlier comment you made about improving that retention rate within the campus this that since you are focus more on the costs archie side to talk more about where are they expected improvement and net attention would be calm from so on yet again that eight let me start and then again anthony can jump in enough from my from my perspective i mean if you look at ipswich but it's a we we acquired ipswich in may of two thousand ninety two about two and half years ago it's network mentioned rate was in the upper eighties
spk_24: the dates well into the nineties and and and back made my views on the reason as they simply that we do facilities but we do them around
spk_16: a around the
spk_5: the aspects of the business there are more around in a new customer acquisition and of course operational efficiencies ah from from the perspective of far
spk_32: you know leveraging our platform and being able to run it more more smoothly for board that that's the reason why we were able to actually make more investments in what the gold and and move it on the fine for us all out and investments by usually greater it it may not look like that from ah
spk_33: of from a dollar perspective but it is that way from a o l b people perspective and and and the number of a head count on it
spk_0: and so we do that and and we also have a really strong bust my relationship management organization that works closely with enterprises who have them stay with us to understand and needs and address those needs so that they will stick with a long so it's a whole host of effort around on both the way
spk_4: we do or go to market which is different and the way we do our product engineering and that allows us to increase retention while at the same time reducing costs and then it's it's a fascinating
spk_0: one thing but it is about paying attention to the details related to what drives customer retention with is often not the same same thing that drives revenue growth so of the whoa that's that's what that's what we're focused on
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