Clearwater Analytics Holdings, Inc. Class A

Q3 2021 Earnings Conference Call

11/3/2021

spk_0: hello and welcome to the clearwater analytics third quarter earnings conference call my name's emma and i'll be your operator today if you'd like to ask a question at the end of today's presentation simply press start from a by one on your telephone she had if you wish to retract your question please post awful by to it's not my pleasure hand to cool over to jail richie had of investor relations again please go ahead
spk_1: thank you and welcome everyone to clearwater analytics first ever earnings would call or letting our results for the third quarter twenty twenty one they're try to have so many new shareholders joining us today after a successful initial public offering late december johnny and the call today are funded by chief executive officer
spk_0: and your tracks chief financial officer after their remarks will open the call up to a question and answer session
spk_1: i'd like to remind all participants that during the cockpits call any forward looking statements are made or sewage to the safe harbor provisions and the private be curative litigation reform act of ninety expressions a future goals including business outlawed expectations for future financial performance and similar items including without limitation expressions using the terminology may will can expect and believe and expressions which are like something other than historical facts are intended to identify for looking thing for the containment in bob number of recent uncertainties including those discussed in that respect or section or out of the ftc actual results may differ from any forward looking statements the copy undertakes no obligation to revise your update any for looking statements in order to reflect events that they arrive after this conference call except as required by law for more information please refer to the cautionary statement in earnings pressure least likely ahmet your to discuss with the color not gap unless otherwise noted a reconciliation to be found in earnings pressure release that it now posted are better relations what's with that i'll turn the caliber to our chief executive officer some pizza thank you to know and won't let you want to clean water use your to extend quarter for their children jones pumpkins cause i flushed as a publicly traded company and hundred and started painting own of usually and huge interest in july he truly appreciate ha excited an incredibly proud of the team
spk_2: in the computer via a building general motors burgeoning the company has grown organically be more than two teams hundred employees across jen officers and seven countries
spk_1: legal one thousand and on a daily basis you process was python six trillion dollars in assets are not natural i don't feel like we're just getting started let me start by laying out the fire key elements the drug present keyloggers business model and strategy the first below is true motives consistent durable grade the vs could certainly achieved he has several years we have one hundred percent retorted got the model and have multiple years the to get consistent and your totally revenue growth of more than twenty percent the company has was last gross revenue detention rate of ninety eight percent shortly live in infamy jacketed portraits because you provide advantage ready to solution
spk_2: get a client use every day
spk_1: we have a solid natural everyday retention rate of a documentary hundred and ten he is how can you do to expect what drives peace metric and she is that ability to capitalize on land and expand opportunities with existing clients clients a un growth and modest flashing increase the second pillar is a high quality business and financial model but also has room to expand a recurring revenue model and hydrants retention provide stability and predictability your business a non flat gross margins approximately seventy five percent it gives us reading to continue making investments like generating regionally the got margins and she casual you're committed to maintaining our technological leadership can expect to continue to make significantly less mention of and gate which currently comprises approximately twenty five percent of marriage mark q water has a disruptive technology platform with deep competitive much our science based latch on the cloud is key of the constraints taste the legacy get naji solutions on our platform security model and processed one time and used by everyone who own such a candidate good connections are added one daughter jeans use spot on with the rights to the good the myriad industry statute nuances and regulatory get of should have one time and use by all and resulting in fashion natural contract each client adds to the out of the platform and the same single alongs teach multikine and flash on a views across industries and with client organizations of all sizes every day or platform gullible a completely blew off a client investment portfolio that has mocked i have said motivations and much i coach the for out for strategy is all marketing drivers should contribute future growth which we have laid out in what we looking at all tree horizons in people cheer waters a market disruptor in a computer with bomb of still like liturgy income tax the of to be low market penetration enough to buckets that can over the next few years sustain mold and twenty percent top line drawn because you when the clock cynically eighty percent of the time we like a proposal the believe that beach in danger one billion dollar business given the four point seven billion dollars of guilty of just will market that we have identified in v school markets does in the short term on right and one the focused on getting a relationship with existing climbs gaining market share we didn't go bankrupt and clients and continue to grow a business and yeah in the medium term what we'd affect us about and two
spk_2: we expect to make investments startled she killed and in a juice and try again markets
spk_1: angelica producing any solutions that allow job growth acceleration and your a nation you see these opportunities to i had to be totally address load market with additional solutions to extend the technology lead as well as gain additional traction with glove noodles pension funds resolved sovereign wealth funds the longer term opportunities or horizon three include the living inside shop hundred mg kept trying to the platform my going dataset of more than five point six trillion dollars of assets which bosses are not last long
spk_2: additionally while the have focused on a purely organic approach the of flexibility financially from a recent i feel
spk_1: not to provide opportunities to explore the enemy and your nephew to accelerate growth
spk_2: the first and final get his client's focus you have been better than the dna of psychology
spk_1: a boy see who's and infused the company a compassionate boston or first mindset and we are joking that simply delights satellites are altering which combines the platform and are people will your lives of our clients operations on the counting fleet and radically simplifies the process of producing the information they need to run their business everyday k what is won't last sixty plus next to the store
spk_2: reflects our clients recognition or fall differentiated child service
spk_1: going to our clients in the only do is to water the focus solely on cocker clock's ticking financial treasury department's wonder know when accounting and reporting positional and reconciling the investment data to a web based platform instead of to manual labor intensive stretch
spk_2: in twenty twelve the expanded our client days also include insurance companies and two years later
spk_1: he added as advocates do you continue to evolve the platform to so the needs of leaders industries and gallagher investment accounting analytics or did you don't comply the why outlines made to a pleasure climb from local markets are changing growing challenges driven by lower you and an increasingly complex and the ballgame regulatory and back this elected them investing in increasingly complex assets and investing globally organizations point eight solving these challenges my body assets guess shake and region specific solutions
spk_3: and then building now to deliver houses and hiring armies of people can run slow in a ritual processes
spk_1: but deserves will be easy way he won a radically sympathize a has the counting on and the village using a purpose boat single instance his multicolored platform that adjusting these challenges in a fundamentally different first you start by going directly to the source of all offshore klein data creating an enchanting reasonable social security moscow it allows us to reconcile the data once every game get ugly and about the kurdish we didn't wrong or reconcile data not to try to my guy a shit counting and on letter change before presenting the outdoor your clients show more customizable that daughter a black swan cheese up a class on the owners body of damaging multiple legacy software products and supporting data for each while also delighting the counting and climb show the same cage the came on a platform onto create a network effect every new client we add including through the security and actually got of coverage of our universe and security posture
spk_3: although stroking ability to add valley
spk_1: all of that shit clear what his mission bitch be the world's most trusted and comprehensive technology platform for investment accounting and and addicts and do believe that the gym leverage like acknowledging the eventually revolutionize the draw the watered of investing now that outstripped the stage for how clean water or breach of the company and how we a position ourselves shop future growth less time to a third quarter twenty twenty one financial results he went on to select year earlier and and realize you're boring revenue growth we shoot from sister monkey even deeper investment and wrote and those investments are starting to show promising results and is trying to multiple notable client once a few will be child highly i recently try and win to not let her go demonstrate our ability to achieve consistent reliable and durable got new clients include several large asset management firms a large number of large insurers and reinsurers confusion study multiple industries including pharmaceuticals energy titanic we can see luggage and a large their schools bay city and county gop the also recently expanded into the real estate investment trust the read market and signed up for us to read client i never investment corporation and it shows that really what a platform to replace the legacy plus gym managed to the accounting of a complex assets provide data reconciliation validation and simplify regulatory body and i mentioned before we get are disruptive says based technology platform that addresses industry structured nuances and is used across industries regardless of organization size or number of assets under management in the third quarter be added eighty two year old global investment manage them some new they get them as a new client because the form was seeking a platform to replace his legacy systems it's one that could provide a single source of accurate and transparent game a flexible and integrated recording and automation he won his current you on border new to this burmese oh she aisle outsource chief investment officer interest and loach business labs care what do you have the technology company reinvents twenty five percent of revenues and blog
spk_2: this means that we continue to innovate our platform and product offerings the latest machine learning and eight years a key focus area is challenging age
spk_1: in the last eighteen months we've completed the big out of a worse office manager team who collectively bring not just tremendous experience to their roads an also incredible passion the third quarter be added to incredible technology leaders to round out attitudes
spk_2: jody cushions key attention of product and technology spent most of his twenty five years building and running the tata group at one of the largest connecticut's was showing dogs joined us as the chief technology officer gaining experience and tries to deal and financially jones and people
spk_1: jennifer it's in capital one on a chance with international expansion they will not be key drivers for a group action ration in the third quarter we built this woman keep cubans with one of the fastest growing insurance firms across asia a first seven figure he should be such a clock in addition to our european insurer and and ensure a you tube a strategy and casualty shoulder and others and an example of are deeply embedded flying shelters
spk_2: we showed clear what is annual north american music on chance to want to connect last week
spk_1: the second inaugural the bunch of countries due to gold applying to prospects gendered sessions that provide trending topics in for due to our clients including he is she invest in our insurance plans shoulder findings lie board and platform specific updates you trying to hold our european use a conference in the fourth quarter of twenty twenty two another example of hobby one can leverage of technology can revolutionize the plot a world of investing the smoking a partnership that one night back the largest black owned bank in the us into a tree under this fucking shit she what has enhanced the into interchange on a source platform which law allows treasury department's building or large topic client base easily tracked can manage their deposits in minority on backs coin can provide the that capital it minority communities this partnership has the potential to help as many as five hundred corporations and asking my knowledge and beach we continue to executor not five pillars of drunk and organically with the frog is we're late in this last quarter and now to provide more color and details on this quote performance
spk_4: i'll hundred and would love to financial officer jim koch
spk_1: thanks sunday and they gollum you for joining us on earth are incomparable we're very excited to complete our initial public offering last quarter and i want to thank my thing and truly it doesn't that bother to help us reach with martha as for my remarks the today i'll start with another be in a business and financial mom
spk_5: have you are financial models for the third call it and by the wrath of the guys for the fourth quarter of a year on it or more
spk_1: added the model it's simple consisting of a hundred percent recurring revenue model the visibility enable by are consistently high was running attention in combination create an incredibly durable business operating a scale which allows us to reinvent back into our platform and i came he truly drive long term that our mission critical path illusion and focus on the lighting are climb a lot to consistently when new business i did i think legacy bob where of love manual often our the pier clients or the game he's kind happy leading to a concert in gross revenue at punching right ninety eight percent in each and every one of the last eleven call are you a platform of are many year that urges proprietary technology manage and reconcile archiving that the data that limited human intervention allowing us to generate approximately seventy five percent non gaap gross margin the stronger smarter provided for the opportunity to consistently in that than are finishing with approximately twenty five percent of revenue in the back into research and development we believe we have the best solution and are significant investment in aren't the only deepen at competitive mode a strong margin profile and confident and are often hundred eighty percent when right when you write a proposal i've not a concrete our investment in operation and go to market capability and recent quarters the national guard of the that the glee and wobbly or still maintaining compelling a job that either tonight we operate at ten point one billion dollar for a dreadful market with our core market that corporation insurance company and asset managers in north america and europe comprising four point seven billion dollars in pain it's large and diverse can provide the long run way to continue insisted that i failed bible very of half the various market article me sir and range from one to two months for smaller i am the year and a lot more complex he typically time monthly evergreen contract with a client even a basic point pricing model which allows us to grow our avenue at our clients go there after
spk_5: in que three we report net revenue retention rates about hundred and eleven percent
spk_6: as a client continue to add asset to the platform
spk_1: in summary we believe our model align their water's edge with the bad about fine i'll also enable our land and expand strategy want to we had established an initial relationship that predictable nature of our revenue for the entire high rob new retention rate and strong gross margin allows it to confidently and bad back into the business hobby for me to long term durable growth and ultimately compelling return the forty telling our home financial all author to dress like an impact in year over year compared the lobby of our cat is all first you'll notice that the recorded a and point three million dollar law and the englishman had that in the third quarter
spk_4: as we some of the proceeds from our initial public offering to retire or to seem that
spk_1: at the same time to carry fifty five million dollars he knew that financing at more attractive interesting yeah so you'll note we recorded seven point seven million dollar of a pretty vague confrontation and in the third quarter twenty twenty one traffic and eighty six million dollar increase over the third quarter funny twin
spk_7: he to after rebate compensation is primarily due to increased equity grant activity and the increase in granting fair value as well as a modification and equity award
spk_1: in connection with idea that i had one minute on earnings per share given our structure and the restructuring that occurred in connection with our i feel archie three gap was her share of fight them reflects only the last seven days a reporter for the period between our ikea and september thirty and that period impacted added ten million dollar law on extinguishment of that in connection with the idea
spk_7: even the short period he did not provide a non gap if yeah
spk_1: in tupelo and going forward weeks after provide of that know that he thea
spk_5: moving to our third quarter financial the ball
spk_1: please note that are without will be discussed on a non gaap or just the basis of the like that revenue in the third quarter with sixty four point five million dollars or twenty one percent year over year at the strong tells momentum we faith in the first happened a year continued into the third for you today i knew his gun twenty three percent as of september thirty twenty twenty one analyze recurring revenue or a are our reached two hundred and fifty seven million dollars a twelve million dollar increase further june thirty twenty twenty one and a twenty percent increase your over year and i mentioned before that revenue retention that strong and ninety eight percent i can the eleventh consecutive quarter reported gross revenue retention of ninety eight percent the net revenue retention rate with a hobby one hundred and eleven percent two hundred and twenty basis point and the third quarter of twenty point
spk_7: you can find continue to grow your business
spk_1: using because i wanted most profit in the quarter was forty eight point one million dollars in costs margin came in at seventy four or five percent as we are investing to accelerate the onboard you have new client today and support a strong pipeline of new plan opportunity we see in queue for
spk_7: although the hoping remain committed to creating those margin over the long term we expected to continue to invest in this area through first quarter twenty twenty two
spk_1: he added is the patient of he continued strong you find the man across the globe the typically we've a twenty research and in eastern europe with french and german language skills to support our clients in a few market notwithstanding everything investment he continue to target that he figures margin for new time at over eighty percent over the long term research and development expenses in the corner were sixteen million dollars was twenty four point eight percent of revenue in line with our expectation you're targeting our that been in aren't be at twenty five percent of that new over the coming for it which we believe that allowed to continue to drive well in our core market while also delivering on the adjacent good opportunity it's sunday mentioned earlier in it for me are hiring that you know smart developers and i'm my way they'll her marketing and in the quarter was eight point four million dollars for thirty percent of revenue up one hundred and eighty basis point year over year you continue to invest heavily in our goal market capability that been actively an international and we are incredibly excited by the proper eating for making and expect to continue to increase our up for in this area heading into early twenty twenty fifth
spk_7: do the heavy emphasis is further building out at present international
spk_1: general and administrative expenses in a quarter or six point six million dollars for ten point two percent of revenue a few hundred and eighty acres on year over year without started to absorb the incremental costs have been a public company what's that the general and administrative expenses will remain elevated at a percentage of revenue in the short term as we analyzed the impact of the public company however if you expect to be able to scale back office the overtime providing offering leverage to the business in long i just didn't either that or earnings before interest taxes depreciation and amortization in the quarter the seventeen point one million dollars or twenty six point five percent about me damn one point nine million from the third quarter at twenty twenty primarily due to be increased investment in operation and failed in and marketing in addition to in cannot have a company car thirty now for the balance sheet the ended the corner with over two hundred and forty five million in cash and cash for them and just under fifty four million in debt as we receive i feel guilty that up the underwriter discounted commission of five hundred and eighty two million dollars focusing now on guidance for the fourth quarter twenty twenty one the fact revenue to be in a range of sixty six million sixty seven million dollars that are in twenty one twenty two percent year over year growth and the fourth quarter twenty twenty it's rated total revenue guidance for the year two two hundred and forty eight point three million you two hundred and forty nine point three million or approximately twenty two percent year over year growth
spk_5: the fact that fourth quarter adjusted ebitda margin to be approximately twenty six percent as we continue to live bathroom while folks adding a canal or company
spk_1: the samurai we're pleased with the performer do in the third quarter the deliver unique value to our clan while continuing to profitable business as i mentioned earlier the operating a large draft will market in the child annotation could still very low you really believe you're in the early stages of a long flight path and that the new business momentum we're seeing today i'm with the investment we're making the lead long term terrible and profitable that
spk_8: with that of turn it over to turn the lights and so did that
spk_3: thank you june
spk_1: and further the didn't know that all and dreaded in fact a what you gotta have become a little more excited about future
spk_2: a bumpy commencement of trinity all the new york stock exchange on september twenty third
spk_1: can you reach a barrier has executive june june in the opening bell holding a major milestone depending on the country
spk_2: i'm usually to be the most most trusted and comprehensive technology platform this one accounting eleven get it is our guiding principle
spk_1: a code quarter financial performance
spk_2: along the explanation of that business model and crude strategy
spk_1: should demonstrate to get help from it'll be our to shooting this mission leaving the juvenile it's all over to share of the to what the story with you and we look forward to discussing of homes and strategy show the country
spk_0: now let me tell you canada would gladly them questions thank you if you'd like trough your question you can do so by pressing star followed led by one on your telephone keypad
spk_1: our first question today comes from jack from asia from jp morgan please go ahead jackson your line is now open
spk_9: really odd such stigma like working dahlgren and dog welcome to internet to get a good actor
spk_1: and daily the decision never made an m maybe think it is there any kind of fees and reality we should be expecting in terms of maybe their net new a are are in a december quarter of actually attended university march for those that wish to the bad as we had toward the end of the year the introduction to replace your abs bledsoe the blood clot advantage sure jackson thanks for the question ah so so there's couple mechanism so one else like kinda go ah and software companies there is a lot more kind of contract signing in the fourth quarter however when you think about how are a are rolls out not only are we finding those contracts but we're also on boring those customers throughout that period of time so that on
spk_10: trend he debated someone because of because of that but we feel i'm if you're really great about the pipeline we have going into the fourth quarter and more excited to execute against
spk_1: great the and on the the getting a single maybe maybe she didn't have never i only yeah and the seven figures a pet past my it goes wanted to read and that seems to be edited schedule don't i don't remember really think about be a package and just yet becoming material
spk_2: our own just curious you know what kind of resources and staff and gradually hi there are exempt sold customers in that region
spk_1: yeah figure the question action
spk_2: damn
spk_1: a little ahead of schedule would actually be right there so we have a small presence in singapore
spk_0: and we expected them to be able to get some initial attraction but we're delighted that you drop this sounds seven figure client from a really fast growing insurance company for your to seem to be a little bit ahead of schedule and we will come to rebuild up that offers saw a little bit faster than be taught
spk_11: okay great them on target thank you on next question state comes from michael to run from wells fargo they've go have michael your line of now i can
spk_12: a there they accept the
spk_1: classic drugs uppers quarters of a company that retention rate keeps creeping up here hundred eleven percent que freak what's driving that that that questions on market exposure to mention for the five after a while on the platform just how those door to the story brain out hours or even in up on a fireman like you showed thanks thanks so much michael in so we do have that a un based pricing model it's a gentle pale two are on the to than of our pricing and just to hit the kind of market volatility question strain on the head eighty six percent of the athletes on our platform i've fixed income and structured products so they just don't have that equity market volatility we just don't see that in our business now local really pleased to see some momentum you kind of of alaska few quarters within the know nine one ten were up to one eleven in this quarter one quarter does not a trend make but when you look at somebody underlying drivers about striding that can a modest expansion two hundred twenty days point
spk_7: one it that's what's really interesting and exciting and that's when we really have to focus of the business the think about strategically over the long run how we continue to grow that and expanded even further
spk_1: let me give you two examples that are really the majority of those drivers one is with our own color strategic asset management client is er en global that managers they're using us and we're continuing it's the the ability to land and expand with those clients as they grow their bills no they're looking for us to grow their business and and that cat and and consistently been the case in a strategic asset management market price another example which is more nathan and were encouraged by it but again we need to continue to work execute the to be able to continue to drive expansion that are huge an example of a large insurance company that had as a fundamental driver of their grow to go out and acquire other businesses and we had multiple large ensures on our platform who are able to really execute upon an expansion strategy one as we started on boarding the client had seventy billion in assets by the time they finished had over one hundred and twenty dollars and so he when it when i think about had with i want to double my business you know i the cfl i worry about what how am i gonna do that and so like clearwater allowed that the about a galas worry about it on
spk_2: in a you know it's it on clearwater shoulders to burden that and so that enables one for the really free to think about their
spk_1: the of strategic ally options there and an alaskan i think i'll say it you know underpinning that one eleven
spk_2: if he the to get to one eleven when you're always ninety eight with address retention at are really in a world class number and so driving to that i'm confident take you decide to that died in a customer testimony to the our the platform a little bit
spk_1: and others game was talking about lunch on seventy billion two hundred and twenty billion
spk_13: the own body time didn't change it all
spk_0: blood from just simply job dude and moved on and and be bradley like to be bring up plans that when they grow
spk_1: it's fairly effortless i and and know you know the single most i can see i'm sure we have documented no backbone and that the i a southern day yep and course on next question stay comes from kevin say from credit suisse please go ahead kevin your line is now i can
spk_2: great you think big some bugs and now let me and my congratulations as well i'm wanted to talk a little bit about the data insights a in as bad scales is it there are certain level and i said a minute five point six trillion what is and need to be it to really drive a criminal data in sites across the business or is it a function of client duration just do is we think about and criminal girl drivers
spk_1: no beyond the the business move more around our data insights
spk_2: yeah
spk_1: thank you to enjoy your question so firstly that's a big issue out and made sure we are driving insightful plans today
spk_2: and and you knew you'd come out and talk to them about on the book for lives of doing what the rest is the compliance issues are but you have been inside from a broader scale i'm frankly we do for our clients today and we hope to do to cross trying to were time so this is loving do dragon
spk_1: revenue from but be investing on new dollars and trying to bring that capability as sort of over the next several years when we don't think given a bad enough a rising food is building expecting to do ocean of get meaningful getting from and twenty two or twenty three but over time you see that as a really really partial or value we could bring
spk_2: that's helpful an interest in it you talk about kind of complexity vs geography it added we think about that and from your the incremental client need to the the complexity virtually the geographical reach is out evenly split or you know just from a client perspective the in the scary a you scale up crusher exist and client base i didn't that brilliant think about complexity in the north american market i don't think they range in every read them can be see a gradual increase in complexity and we have seen it given to the last several years so expected to continue to grow
spk_1: only because the try and complex as it's contents you go click on the private essence but as we go out in europe and now in asia that is different the because the more as your chances there which are unique to those markets
spk_0: launching some dealer sources which are unique but market and you didn't want to do that people know that doesn't make sense a comprehensive provide
spk_14: you could have our church frankly ground the world and we will be able to the bottom that we will be able to get the regulatory the boarding on it so we we want to be that but that does add more more work and he's on the short term if i can also add that if you go back several years here he had the same issue yet not right a now are you can go not a better job the a motor the data connection to have most of the reporting each taken care of in and continue to be that out and europe asia just you
spk_1: thank you very much as she urged like it it our next question today comes from jang for set from morgan stanley please go ahead james your line of how i can hey good afternoon shape traffic jam on a wanted to ask a couple of follow up questions on first on back on on the retention rate like obviously i'm great performance there you know and gave a lot of reasons for why why your retention rate should be so good i'm wondering just as a as a quick follow should we expect that level of of retention to i'm continue to improve or or even at least for at his level than and what are that the things that maybe from a seasonal basis or are other factors could move
spk_7: it around a little bit yeah face change this is jim
spk_1: no so you know as you notice there's no finale to i guess retention night the last eleven quarters ninety eight percent on
spk_7: when you think about it so then let me also say long term i and and and i do you mean it's like strategically and in the long term
spk_1: now
spk_15: one call we're were effectively you know a single product company at this point so as you think about offering more your clients and expanding and thinking about module eyes in the offering those are all
spk_1: lash always the more reasons to see that retention rate grow over time if we look at it kind of over the next when a few quarters are so i think that there are on
spk_16: you know there are tailwind around driving asset that aggregation as well and i don't and i can't think of specific seasonality around
spk_17: you know why do insurance companies choose to do an ama they are they doing in a in he wanted you to keep treaty for i don't i don't think that much different
spk_18: i'm inside see that that trend kind of
spk_19: i'm is pretty pretty normal throughout loud
spk_2: those the on
spk_18: in iraq had the cat throughout the calendar year
spk_3: i think it comes down to you know how could that exhilarating the short term he he could be driven by the timing of some price increases which are typically annualized based on when a client has an advantage of the sign their initial contract and so if you assume contract girl
spk_2: a little bit in the fourth quarter bit less relatively more new contract signed in the fourth quarter of the now on the other three that could be a slight hill in there
spk_1: god i gotta get huge event
spk_2: dungeon gym and then you know
spk_1: yeah sorry i got started not go ahead
spk_14: one a place oh and i'm entering another a thought yeah
spk_1: hundred and that you might have kind of guy go that high i couldn't i be hiding to i am i gonna trash can and time it in another and sorry go ahead peggy lee the all of us can add was james for than you think about how the company has traditionally done those is it had no single try to the entire platform should we got try for years back the price and said what device was but we wanted to continue to add whole new set of functionality
spk_2: really spend that much money on are doing some knowledge to develop it will be just have never in a structure with for about
spk_1: modular ization of a patch on what you saw differently and those are avenue is about of how you good structure me improve with the new potentially that makes sense
spk_14: it does it does and i want to go back yard and maybe you're talking about arm canada benefits
spk_20: i am at as you expand internationally and incorporating other types of of out that and as well data sources how that benefits everybody and and i got explanationless is i'm quite compelling i'm wondering if if you're also seen any notable went in and of
spk_0: the verticals are adjacent market yeah like i'm state local governments are are those kinds of things are or how we should think about i'm kind of the expansion beyond just international into some nearby opportunity to even if it in different types organizations yeah it'll make you didn't get that we continue to see we wanna be wanting computers ah true about the platform it's infancy virtual night so you have a single that it's england's about identity but is that applicable to local and state governments absolutely not you have to build a little bit
spk_21: to think about the boarding means which are specific to a state government or local government yes
spk_1: but that's reasonably reasonably easy a we did cell phones read his quarter so that was interesting is that a reason to our read now we've found that on solution is is fully capable of meeting that need so those are two market to be a contingency of we should continue to grow older
spk_2: do you think about vengeance in southern funds as the rising to opportunity
spk_3: and it's onto the platform as of today he just that he just don't have the same ability to go to the market when you do this with the time to as are you talking about these markets as a sort of right them to do the compared to a horizon one son of a coma my judgment is insurance as man from the corporations right where
spk_1: i can win any person to die in does help to that's how you see but those new markets are are definitely an interesting that automatic and nonsense that's very kind of thank you very much thank you thank you
spk_2: our next question today comes from brian schwartz from up nine or incomplete good guy had been your line of now i can oh god thank you very much hey congratulations on and jam really i break quarter here i am i to question the first squash i want to follow up on on non i was first question about the queue for a pipeline seasonality on the you find that a lot of big deal here this quarter in a talk about the one in a shadow on it and and neuberger on can you shed any light in terms of how that big opportunities are looking in the pipeline here for queue for i just wanna make sure you didn't drain at here and cute ray and i've a follow up
spk_1: very little to armed didn't have been thank you for that question your need
spk_7: we do continue to see
spk_1: any good burned out of the pipeline so many people the pipeline obviously be having bastard or the last two quarters pretty significantly in sales and marketing so anything when i i'm firstly insurance an asset management in north america continues to out that
spk_21: if a lot of traction in europe i did bunch of traction and continental europe too
spk_1: and so we need to see a really robust pipeline and i'll just mention
spk_2: we're gonna get the operations ranked i'm sure we are not effective than on board in them
spk_1: and they come in like an once again said i can be of disease gnarly been isn't quite them is coupon a little bit bigger
spk_2: often but that's true for all and by of the company the against right and but it's not like your shows up and yeah right away because you're to onboard them gym what he hadn't into that hell i think they're in a just to be one you know we didn't rain applied by we feel near that's why we're making indices that when they came in in operation and and if you think about it we made investments in a leadership in sales and marketing and and need only felt out those came ah but you know that taking the whole year to do that so you understand how takes time for says people to become productive and philippines and so they were optimistic i appreciate that collar and then the one follow up i had it's a new product up and out out what did you can get any update on the part them an oled act them to kind of curious about why it was part of any of these big deal that you won in the quarter and just how the reception can ban for that new our technology and some deeper brian i'm going to prison so exciting and i think so exciting because
spk_1: you know this won't open architecture allows us to go after market which we would have it should have taken longer trust want an address night so we have three plans live on head which has significant and we have a bite languages countries to go there but our ability to
spk_22: how to position the and multiple industries is really interesting
spk_23: and of as the new you only have you talked about
spk_0: just being out a big mover in the ass management want but but really what he also finding his it has a lot of it's activity in the insurance sector
spk_24: and the reason for that in the larger of insurers
spk_1: have other accounting engines and the can't please all of them at the same guy and and so bad
spk_2: that compensation being able to have those conversations now i think some into buying a helpful so they don't always count as just prism deals as much as how did you bring the pipeline forward and and build a pipeline you even have had trouble believe otherwise thank you for take my question this afternoon think of person
spk_1: our next question stay comes from cabriolet for guess from goldman sachs they go ahead gabriella your line of now i can cut off man thanks for taking the passion and crack on the i care and the quarter and the point of power on on the that commentary about it on the announcement stay in north america in particular could you show up on not other of tea towel on what you're seeing what the five of the the yellow relative to what you could because the and and shine bright and then any power on the company environment but that looks like it don't think you get real of for question here so we do different right so you think about as a management it's more land and expand them an insurance company or so a lot of be naturally retention number comes from there but i'm going to say that ah are out of management business just continue to do very well specially north america
spk_0: we obviously had announced or a do loud and you can earlier
spk_1: on as a management you can kinda see good gotten that
spk_7: and i'm the insurance plans are obviously more one time
spk_1: normally unless you have a traditions as as gym they doubt
spk_25: but also the at anything else that you know you want but found the ad and are you know gabrielle we talk about how i eat out in general were getting the entire book right at the at the insurance company well as in in the asset management stage or nibbling at at it to used the new bear the burden no
spk_8: berman example like that of yale and well peter that their business right and and in winning that editor to get king and you know because we have any on base the dog driven by kind of the total a lamb said that not said that the small piece of business by any stretch but
spk_2: that that poet the pointed in cabot a typical fashion ones who are in add up from like that me well
spk_1: work together and and we have some another example of management clients were they brought us into one piece that is that it's working well they're bringing us into the next piece those are typically you know they're day or six figure deals but they wouldn't be
spk_2: i'm not a seven figure deal could you typically get had at large insurance company
spk_1: but comic fans and then the power some and sentiment equity market volatility earlier and having very little exposure that how an effect and kind of fire how do we think about the potential rescue a new i'm a rising right environment yeah so insurance companies are doing book accounting dry as as well so i think they're pretty limited i think our and the fixed income side
spk_24: one
spk_2: now that some that and that's possible
spk_0: also remember we're managing their home work so as a hedge you know those things are playing out as well within iraq
spk_1: a london
spk_26: have your and i would like to add to that
spk_1: yeah when you look at me think about who outlines on their business really more often than largest to make sure the protected under nazi to and been going to like a silver bullet in their minds it's a two step process and you act like you're putting out there with the wanted to grow twenty percent to and income down thirty percent tomorrow
spk_14: so just the nature of investing
spk_1: keep said with ensure those on wallet times now we went back in stress tested for in the literally many many many photos on end just to see if there was some one tenderly the in and frankly gyms confidence about equity market comes from what happened
spk_24: i'm a year back in her back in with all the disruption the equity markets
spk_2: ah you gonna be as it's on on our platform like like a didn't moved one or two percent and so we now have a different degree of hundred and to do well on on on the latter wandered guilty or not russian
spk_1: if her hit a hot car thank yeah
spk_27: thanking the bill
spk_1: our max question today comes from camille markets iraq from william black please go ahead camaro your line of now i son
spk_2: are you guys have a carbon paper the page him
spk_1: as i can i mean couplings but anyway congratulations a half from hijab there i guess i want to a little bit on the virginia city oh here you know how harsh me think about i know it's early but he think about innovation regret expansion from are complex acid they be crypto many other things have really about but parties are and you talk about sort of investing in telemarketing but but how you got nothing and our day and an erotic discuss this with him but the much up on it you
spk_28: yeah
spk_29: thank you but about and funded
spk_1: i repeat to be kinda lot of platform does it do well to do for our current lines i think most can say yes i'm a resounding be so but then the question as as you grow globally and you scale faster rate having somebody or show it's background in a holiday more the been out for example which killed dramatically like the league leaders he was bad and we think he brings the program judy perchance he talks about a lot is next night and how do you take a platform today
spk_2: and architected such bad it of capable love a good killed in can actually don't charge don't action that would and everything out so that is one big one big focus is to likes to second one is around gloat globally so are a lot of energy going into thinking about how do we build software which you
spk_1: completely at home in every part of the word right in and that is i think there's a lot of grow too late and you shouldn't she's focusing on in the third one is how the me more disruptive lee process things like by with accents and and complex assets i can we do the job as good as others but how do the shops are we to do that and so those are the three things i think the wake of in the morning and said i think bad and that's that's what we're focused on i didn't want to quickly adults so that actually our new spending has continued to go off i didn't look at what it was just young beautiful that and so we are very focused on we need to protect and grow of technological leap and and some those people have the bad gonna be well of having food
spk_30: systems like that
spk_0: and becomes love
spk_1: yeah not as affair as me i think i think if that's your the three thousand plus then it's of connection the protect mode and the better make a lot of sense i guess like man a question i had was you know you haven't done as today we did on the have to be on the road show earlier or just about how you love pa the channels right to enter the fascism a new market started in europe you know delight of chow pretty heavily armed custodian partnerships etc but but maybe have been hobbled the for grappling ever have a good chance to have the channel
spk_2: be more of a partner where the sell the lucky but maybe and twenty two build up a sort of maybe twenty twenty four twenty five star trek down at the channel absorb some guy got a market advantage valid europe asia or even though you have enough to get service have been hiding what that i you enough no i completely agree completely agree that in the european market context news channels make a difference now the good news is have been getting all this job it out that channel so can there be a true accelerator of grow it's rather than supplanting a rag on him but i'm in great neck the but when you don't take time
spk_31: i think if you looked at the garbage humid over the last quarter i again
spk_1: it it's going really well but the problem isn't a dickstein least partnerships and channels take time and you cannot sell a bang boom them to live fully up and running but we have a dedicated been regions doing that now which does justice channels and important ships traditionally though we haven't done
spk_2: right in some into push in a building muscle in the have dedicated been that yacht in europe and in boston sort of addressing this when it's on like you can develop fight today are not paper and you the close deals and say oh those are comes with the channel certainly a a committed to building up the channel but the to for my part of our current ah current booking see this as an accident or treating
spk_1: thought of on the help of a your i think to my question than that and i started yet thank thank you or next question stay comes from rashid january out for an rb say please go ahead was she a line is now open a gosh i saw my shirt for taking my questions and a nice to see a pretty solid color out to one of the go go back and maybe drill bit deeper into thinking about contribution from new clients or says expansion on it i'd add and and how how we should be about that next going forward and alongside that how should we expect the pace of klein as to trend over the next shuttle quarters and then i've got a follow up sure i'm sure the can you know british you think you on for the question jerk i didn't really we continue to win is eighty percent he doesn't usually it's it you know in auto market in the marketing were wounded in some of the dying light up when you read a proposal so we continue to see that
spk_2: do not let me look like i'm touching school in highness if it is
spk_1: do we on board and lodging number of lines and logos yes we do i know a good wanted to judge clarify that when you look at insurance companies a lot of the gotten some purely locals and you look at the answered managers it is more divided only because as a manager the london expand a and they also have new logo in the public modularity it's almost all you know those so we do generate a whole lot of do logos and one measure would be if the and iraq than that retention rate i think those are from from clients and been at rest of the go to the from ah from you lobos
spk_0: gathering us unless you know how positive i appreciate that
spk_21: yes absolutely and utterly other courses wanted to ask being made maybe a little bit more long term are intelligent be rubbish he grounded this size almost entirely or organically if not entirely organically on a as you think though about expanding the platform and functionality how do you think about it a future
spk_32: your opportunities to do so by in a and until the understanding that that if you do that you'd you'd fully integrate the assets and gonna keep a single platform versus how some of your competitors approach emanate a pet beginning to sense for just how your that give up avenues of potential lovers to accelerate organic salary that robe out
spk_33: absolutely i'm from look for us to get really high bar fight we have a good competes on a works you can we can grow at a at the sprees and frankly go and an accelerated pace of using the channel you thinking like pensions on the other markets you talk about saw bodies instance pretty high
spk_32: but then when you think about it what would be look for so i can give you some ideas on that first one is accelerated adoption a local markets
spk_34: so obviously be build out in europe it did find the hard the been get them on boarded up and dickstein simply with asia sure there was a we graduate adoption in a bull markets that would be a really good fit for money
spk_21: more specifically of course gotten in europe and asia
spk_32: the third one would be gotten the do some kick allergies so cigarette than the wrist speeds on the reg the boeing space kinda that he doesn't that would be interesting to the for the brigham would be gotten a do some industries which are particular item to should have given the way to pull forward for i think
spk_21: to a make of right than one like functions or things like that then you're such a be the other one which be interesting so the that sort of a list though don't they she that we literally a good on that list and say does the kid one two three four five and in which case it is interesting but we do want to do it
spk_1: no company that had a history of don't have a name and we can be good for to be towed organically the really good no reason not to excellent adoption so we want think about it and we're working on it for diligently as nice feature
spk_2: at that the helpful thank you so much our final question stay comes from of and run money from a farm blur please go ahead of and your line of now i can a parent can now congrats and that her first but quarter of course i feel emotion my question that been answered but
spk_1: howdy
spk_2: after sunset laugh at your public this thing
spk_1: yeah can you talk about some of them gets them accommodation
spk_2: you had hasn't had the public the think it any different
spk_1: ah and you know climax or cannot of forces and is that like being a new slide and in a presentation back winner gotten to prospective customers and out and and alpha and a lot going on on on this is like you know if any kind of a a the is eighty kind of the the environment charged up and excited are actually a candidate feel as as a went to that of exit
spk_34: yeah and been thinking of and you for those question so look i've gotta say
spk_2: and the submissions and is correct can i can each i mean employees or
spk_0: just across the board really excited and happy about this i think from the mindset perspective
spk_35: and switches us from being
spk_2: a challenger in the industry
spk_1: to sum up to be part of the country which you absolutely need this industry worldwide so from employees literally up and
spk_0: did the hooting my convince others real it's real excitement about this not a good wanted to me that one of the reasons we did the idea of remember once plans
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