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spk_0: gray area thank you for standing by welcome to the hotspot clue to twenty twenty one earnings conference call at this time all participants are now listen only mode after the speaker it's presentation there will be a question and answer session to asked a question during the session you'll need to practice star on your telephone please be advised that today's current friend of the is being recorded if you require any further assistance please press start zero i would like to hand the conference over your first speaker today chakma clashing had of investor relations for hotspot thank you please go ahead sir
spk_1: thanks operator good afternoon walk and a hotspot second quarter two thousand twenty one earnings conference call today we discussing the results announced in the press release that was issued after the market closed with me on the call this afternoon brian halligan a cofounder and newly named executive chairman thermos shaw or cofounder and ctl ya many wrong and or chief custom officer and newly named ceo you keep euchre or chief
spk_2: financial officer
spk_1: before we start at like to draw your attention to the safe harbor statement included in today's press release during this call you make statements lady dorcas the may be considered for looking within the meaning of section twenty seven a of the securities exchange act of nineteen thirty three is amended in section twenty one he of the securities exchange act of nineteen thirty four is amended all statements other than statements of historical fact afford looking statements including those regarding management's expectations of future financial an operational performance an operational expenditures expected growth the leadership transitions and business outlook including our work financial guidance for the third fiscal quarter and for your teeth awesome twenty one ford looking statements reflect our views only as of today and except is required by law we undertake no obligation to update or revise these forward looking statements please refer to the cautionary language in today's press release and are form thankyou which will be fall with yeah fifi this afternoon for discussion the risks and uncertainties that could cause actual results to differ materially from expectations during the course of today's call or for to certain non gaap financial measures as defined by regulation g the gap financial measure most directly comparable to each non gap financial measure user discussed reconciliation of the differences between such measures can be found within our second quarter two thousand twenty one earnings press release and the a better relations section of our website now is my pleasure to turn over the called the hot spots chief custom officer soon to be chief executive officer yemeni rangan your money
spk_0: thanks job and greetings everyone thank you for joining us today as we leave you have thought second quarter twenty twenty one earnings result i know your widely thing be exciting news that brian will be taking on the role of executive chairman as of the number seven we're all looking forward to having brian back in action and stronger than ever of and he returned next month brian will be joining the party or and a few minutes to talk about the path forward in the new capacity as well as to share some reflections on the fifteen years that have led us to today's news and bit quarter fantastic result
spk_3: before we do that i want to focus on the business at hand
spk_4: the great results from last corner
spk_3: we continue to operate from abroad position of strength with que do revenue growth accelerating the forty seven percent year over year in constant current the and totaled customers going forty percent year over year or two over hundred and twenty one thousand
spk_0: we've seen mother product adoption grow to over half of our totally customer a great indicator that more companies are realizing the advantage of managing their entire front office on one platform with one data model one view of their customers and one user interface that either you
spk_3: a key driver of the continue growth if digital transformation we're seeing as more company them have to adapt to doing business online
spk_0: this shift toward digitally powered customer experiences is one that have caught have been evangelize thing for the past fifteen years so we've been bout the vision to meet the moment at consumers increasingly expect a remarkable digital experiences at each step up their journey scaling companies need a powerful the are and platform to tie it all together
spk_3: this makes the are am not just the nice to pass solution but an indispensable driver of long term growth for our customers
spk_0: a key part of that digital experience that the company website then the digital front door traditional that fight content management systems are often find on from other essential front of the function their complex to manage the last feed security and can ability that companies need to go there but that's why we launched the i'm a cop professional an enterprise last year and we're continuing to enough and the platform with cm a puddle daughter launched yesterday fianna from starter is build a part of our crm platform to give companies seem like access to all of their customer data having the are empowered website enabled both marketing earth and developers to efficiently work together to build remarkable digital experiences and maximize the revenue generating opportunity as part of that launch we also adjusted the pricing rcm cms have professional and enterprise tier to reflect the increased value we're dead bring to our customers through as the enhancement dynamic pages fight leave an increase minimum capacity the even more advanced features and the road map it's early stages of with launched but the up with and that's the enough have a daughter will fill a painful gap or marketeers and developers that are looking to spend less time managing their system and more time driving growth another important function of digital first transformation is revenue operation last quarter i talked about the launch of operation power a new product design to transform the role of operations professional and empower them to become strategic drivers of revenue and grilled i'm excited to share that we're continuing to your positive feedback from customers and partners and that offer
spk_3: a recent have obama nine leap ahead of our internal both expectation over the past quarter and a half
spk_0: they think argue but new integration engine has quickly become one of the most compelling and popular free tool but an early among small customers exemplifying how operation public drive adoption of rcr and platform we're all the strong adoption of programmable automation among larger companies who are looking to take full advantage of their data and delaware a person life experiences to their customer
spk_3: one of the top solution partners had good to say about the future
spk_5: programmable automation make some but significantly more flexible we've used to build even the most advanced fitness prophecy and have bought from the of the integration data enrichment commission calculation do renewal communication with programmable automation in operate in pop it
spk_0: you can dream you can automate it thanks to the team at aptitude a for sharing the feedback we're so glad that they are theme value in operation pop that operation father and cms some starter or great example of our commitment to crafting rcr and platform in how rather than cobbling together with clunky acquisition
spk_3: that focuses on gonna bring a consumer grade you i matched with a cannibal enterprise back and set us apart from traditional the platform and have bought in a strong position to achieve our goal of becoming the number one the are and platform for scaling company
spk_6: with that alternate over good kate to give an overview of are fantastic financial results
spk_0: actually let's turn to our second quarter financial results and are guidance for the third quarter and full year of twenty twenty one second quarter revenue grew forty seven percent year over year and constant currency and fifty three percent as reported q to subscription revenue per fifty three percent year over year or services another revenue increased forty four percent both on and as reported basis
spk_6: we continued to see strong performance across all of our hugs tears and geography is in queue to revenue retention continue to be very strong and the corner once again benefiting from healthy customer dollar retention levels in addition our net revenue retention continue to benefit from a diverse set of a drivers with particular strength from addition upgrades cross cell activity and feet expansions
spk_0: as of que to fifty eight percent of our customers are getting value of two or more have they adopt hotspot as a platform domestic revenue grew forty two percent in queue to or international revenue growth was fifty four percent year over year and constant currency and sixty eight percent as reported national revenue represented forty six percent of total revenue and cute you up for point zero every year we added over seventy one hundred net customers in the quarter bringing our total customer count to a hundred and twenty one thousand up forty percent year over year average subscription revenue per customer grew eight percent year over year to approximately ten thousand two hundred dollars as we thought positive next shift toward our professional and enterprise tears
spk_6: coupled with strong and install they selling and the quarter we expect our strong installed a selling and positive product next shift to continue through the second half of twenty twenty one
spk_0: as a result we anticipate second half net customer addition to sustain around these levels as we continue to compare against the robust starter growth rate customer additions from twenty twenty and we expect hi single digits year over year growth and srp p and que three and queue for deferred revenue as of the end of june was three hundred and sixty two million dollars a fifty percent increase year over year calculator billing with three hundred and thirty four million dollars growing sixty per se a year over year in constant currency and sixty five percent as reported this acceleration in concert currently billings growth was driven by strong business performance and a quarter in addition to an easier overall comparison as a result of the challenging business environment and the second quarter of twenty twenty the remainder of my comments or for to non gaap measures
spk_6: second quarter gross margin was eighty one percent down a little over one point year over year subscription gross margin with eighty four percent or services gross margin was negative five percent second quarter operating margin was nine percent relatively flat as compared to the same period a year ago
spk_0: operating margin and a quarter exceeded our expectations are merely as a result of are strong revenue performance
spk_6: at the end of the second quarter we had just under five thousand employees up thirty two percent year over year
spk_0: net income in the second quarter was twenty two million dollars or forty three sons are fully diluted share
spk_6: cap acts including capitalized software development cost was sixteen million dollars or five percent of revenue and que to
spk_0: free cash flow and a quarter was twenty six million dollars or eight percent of revenue
spk_6: we continue to expect callbacks of the percentage of revenue to be that five percent and twenty twenty one and now expect free cash flow to be between one hundred and seventy and a hundred and seventy five million dollars with a seasonally strong free cash flow quarter inch you for finally or cash and marketable securities totaled one point three billion dollar earth at the end of june
spk_0: and with that let's dive into guidance for the third quarter and full year of twenty twenty one for the third quarter total revenue is expected to be in the range of three hundred and twenty five to three hundred and twenty seven million dollars of forty three percent year over year at the midpoint
spk_6: non gaap operating income is expected to be between twenty seven and twenty nine million dollars
spk_0: non get diluted net income per share is expected to be between forty two and forty four said this assumes fifty point six million fully deluded shares outstanding
spk_6: and for the full year of twenty twenty one total revenue is now expected to be in the range of one point two six eight to one point two seven two billion dollars up forty four percent year over year at the midpoint non gaap operating income is now expected to be between one hundred and seven and one hundred nine million dollars non kept a little net income per share is now expected to be between a dollar sixty seven and a dollar sixty nine this assumes fifty point five million fully deluded shares outstanding
spk_0: as you adjust just your models keep in mind the following a current far it's were forecasting and fx tell when to as reported revenue of two point think you three a neutral impact to que four and a three point kellen for the full year
spk_6: lastly i look forward to seeing many of you again for virtual analysts guy as part of our inbound down twenty one event on october twelve
spk_1: and with that on handing them or to brian for some closing thoughts they do it bedroom pleasure to be able to speak with all of you again i'm so proud of the entire about few the been absolutely in during my time away and i'm so thankful for the word the yamani doormat game in the record leadership team of done my up my my fear bank the all of you
spk_7: i also wanted a huge beg you to all you the well wishes over the past couple of months the road to recovery been a long one but i'm feeling really really good my head is a hundred percent back my body love at me the little more physical therapy but i'm making real progress and should get back to one hundred percent white you
spk_1: go back in june we celebrate or fifteen year anniversary of but found it in i look back in the last few years i'm super proud of what we've been able to accomplish he bolted truly mission driven organization bind it's all for the customer it actually help million them organization grow better this past year we had some exciting mile down by tapping a billion dollars and they are are in a hundred thousand customers
spk_7: use your just the start of this one fill in i'm very early innings in have a lot more value to provide your customers are than boy
spk_1: one of the key to the amount of think that we've had some or if we haven't been afraid to take inspiration from the warm but a gold the good something like someone is sitting in the shade today because someone played that is the several years ago that's some partner nutshell we've been willing and and feel like shifting the mortar greenery yeah to have grown up as we should be broken up into a for biopic platform should be for bringing a mile in many many others that are all paying off quite night before it a lot to shade going on
spk_7: elder the last six months i would be the a lot about how i can have the most impact on hum spot movie or it moving to the victim chairman role built like a natural fit as an executive member of the board of the able to lean into the bay but excite me like plane thing and nurturing more of the feed the will turn into b c
spk_1: any trees for years ago my turn this into that getting chairman will not be off both the world's super confident in many ability to leave have spot when we are ya many when you are getting an incredible leader with an amazing tracker going to holding high impact world that as a be or day and dropbox will be able to a lying morgan he failed service be a great a more oh experience or catholic but what we've actually gotten is so much more than that is the de yah many arrive she may have been better from reducing friction for our customers the leaving the company with clarity and empathy through the pandemic ya many has proven she's ready to take on the role of the or the out or of spot
spk_7: in our customers and partners grow better in she the perfect complement homage to dimension me to write the next chapter i want to close out by what began taking ya many for terrific leadership over the past six months and not bring my heartfelt and gradually sure to her on this exciting miles them permission i have no doubt that you the right person to lead of bottom of the board and i'm super excited about the journey ahead
spk_3: i want to thank all of you for your time girls via the omni already you
spk_0: thank you so much brian for your kind words and for your incredible support during my time here at have been i'm deeply humble grateful and humor i decided to take on the new role in partnership with you darnedest and the entire have team it with your visionary leadership of founders that got up here today and that leadership will continue to be invaluable as have bought growth
spk_3: i'm excited to continue working together to build innovative product for our customers create a remarkable culture for our employees and ultimately make up bought the number one the are and platform for scaling company
spk_0: operator please open up the call for some question a reminder to ask the question you will need to prices for one on your telephone to the a question from the pound or heskey
spk_1: our first question is farm for my summon up from jeffrey your line is open i get a name feel welcome back brian yuki really representing spade the great got the internet and built i'll be there then and young and strong leadership staring it recently didn't drag on the move they get get chairman really happy the years you're staying and ya money rather than younger is the of the full time a lot of hear from both the be a little bit more about how huge you will be
spk_7: dividing up the coresponsibility responsibility is going forward arm and where each of you will be focusing their individual attention and then yami maybe for your it is obviously early but you've been at the helm now for six months it would be great year maybe if you get anything bad about and spots vision and strategy going forward
spk_8: some on i will pick it up again it for ya me but a great hear your voice my friend thank you very much for the a good question year
spk_1: i'll say i feel fantastic
spk_7: a light headed only recovered from the accident and drove me back at home or in his room with night then in college at the a terrific time for me now
spk_1: when you get hurt i live by man the line feminine up awful that looking and feeling in i think about airport what can i do how can i add value to have spot in a bigger way going board of in a benefits to be near them know what next for me and i bought this is a good time you becoming become an executive chairman and ya minutes it's to become key oh and eight in the olympics when you look three nomination ya money behind and i had a germany she of the perfect fit for this job and for the day that broke the think if the neck follow each of the perfect pet she found my job the last six months you get the the numbers are been acting he doesn't matter for job and very very variables
spk_9: in terms of dividing up what we're going to while work on the pack a lot about that know at yeah way and inverclyde when i'm sort of focused on man at the decadent chairs first one i am i playing to get decadent you're actually been engage beckoning chair and you probably heard me tell the bad joke and i you could they any call that
spk_7: young would what if i really hope that they have to take me out on a stretcher and straightjacket in my bathroom of the up the dallas
spk_1: and thought about that
spk_7: but my name will have help coming in as she can keep the thing wrong we be like at the very early in the are on the second thing i've always enjoyed doing and helped drive in place to be to turn into big he treated really well enjoy enjoyed over the years or the out it's weak tree we pointed several years ago and fill the small tree with a lot more growth the go on and we are just that
spk_0: planning a week the platform the that going really well and yeah
spk_3: top of the birthing on that be that puts a premium malek them at our culture either themes we played a long long long long time together while play paid off in that i like that at work and i like product and product vision for that kind of where i'm going to be focused and then just helping young i'm a helium yeah what thank you brian and i
spk_0: them all humble grateful and you were invited to take that new wall or like the next chapter of growth and have thought come on i'm out there particularly excited because i get to work with to brilliant people brian and ah national done this for fifteen years was fantastic experience the three of a share a lot in common of growth mindset
spk_5: curiosity focus on product innovation focus on customer center the the and i think the combination of their burial plus my focus on killing customer going to be powerful
spk_0: the last question about the vision and strategy oh our vision is clear our mission is to help millions of organization girl better and woodstock getting started in accomplishing a better than on flat eighty over the last month and or that a couple of years has been working a clear and it's not changing and the by have to articulate the strategy a threefold our first all the want to build a best in class the are and platform for gaming company and will do that by expanding into new about like you thought do with operation sub last quarter and will do that by investing heavily into our existing of like you heard about the piano have that quarter we have a long way to go a lot more to do in terms of the product the second part of our strategy is he willing on a horse segment now we focus on the one to two thousand and like month and historically they've been really good at that twenty to two hundred and we have on parallel clock market fit their we've been investing heavily in the lower end of the segment one to twenty and will continue to him that in the two hundred to two thousand the we are great in our enterprise slap a product with consumer grade either view and this is working
spk_1: and five o'clock one of the the i'm very excited about it that we want to continue to build an organization that can fail we care deeply about our employ we care deeply about diversity and we want have thought to be the played ah that's really the best place for people to work and serve our customer though i am you
spk_7: we're excited to get started on this journey and right the next chapter of girl that apply
spk_0: great thank you for that about the that began entered and kate i i know that the big news like the transition but it wouldn't be as quarter if i had enough than the financial just that that billings number was very very strong i know there's an easy part there but even if i look against the very strong one que maybe can you have and unpack if there's any anything that change in terms of either duration or was just when they're more larger customers in the corner that mean toward an enterprising took more seats than normal just help us understand that the release that got a mousetrap their yeah surfing flawed ah what notable on and not with you to ah another not locked out of the ordinary here there's not a lot of it changes in duration on the biggest driver of the building performance was the throng bulking grow that we had in the quarter i'm the one thing that i would point out and you you kind of got it in the question is that there is a relatively easy or compare ah billings relative to revenue in common currency
spk_1: you might remember last year
spk_0: in que que mi ran a number of short term customer relief place that had a bit of a negative impact on our cute you two thousand and twenty billing and so billion times it's frankly a little bit of an easier have them revenue
spk_10: great idea brian what will miss the on the call blood mcgrath again and go look for in get future inbound yeah of theory actually pretty soon it valve even and be a better day at the in in and so will event
spk_7: and or next question and from our murphy from jp morgan know line is open
spk_10: yeah thank you very much briand as much as i enjoy reading here
spk_0: treated so much better did to hear your voice by though
spk_10: rated her from you and the congrats to to both of you on an i'll a tremendous milestones
spk_0: yummy mummies or whatever they give you part in the past about bringing high and features down a bit murky companies i'm just wondering which features maybe have driven degraded traction recently in in the enterprise edition whether be our custom jax or a company's it's marketing or difference
spk_11: channels that are marching just the anything else did you see which might be resonating and the results here
spk_0: yeah i think i think lot more get to hear your wife and appreciate your vision forgot ryan myself i say the enterprise all of the product investments that we have been making and a bite of working our strategy is really to build product that fit every one of our segment and are of market segment from two hundred to two thousand and that's been a focus area for us now last year or of we powered up marketing pop and than lot of the features that the and now that the beginning of the year deeply resonated with our customers and at inbound we launched failed have enterprise of you know and pockmarked the you'd had a lot of the cp you advanced features that the added huge head in que one of this year we added conversation intelligent now this category in and of itself and the fact that we added it to power a hob ah
spk_7: and is now see what part of our whole week that is resonating deeply with in the market so our strategy for continuing to build powerhouse features while maintaining that either view that it's consumer grade think that is what is working and broadly to get them or upmarket
spk_0: we're just getting a fair share of a fast and boy market and will continue the invest both on products as well as go to market within a feeling that one thing that we've been okay learn the people that are that that adding on their the that
spk_7: that we we talk about of loved it would really of people continue to pull on that thread we have an object but for the leader vocation think that customers have an app and for and the idea there is for for a company to be able to model of entire village with in hotspot for the more but will they leave get the more data we can all their and of higher percentage the bachelor two thousand segment the would
spk_10: well okay thank you for approach to get some color in aoyama could fall i it sounds like you're mostly focused on executing on the on the trigger king a road map strapped to a in are you been a big part of it it's been performing live in the well i think you know kind of falling on some odd question of just wondering good
spk_7: do you carry on
spk_10: did some unique philosophies or or maybe just think
spk_12: the time is right to make any kind of
spk_0: the little creek for for instance is the fuck is market brick damn mercator the optimal number of to write an article about conquered hundred punishments go to vindicate batter you know how to push on the operation side it it's factors were you have it a little different view ah that's not a great question i can hear is it going back to your the earlier are often times of strategy our strategy is we are i you know we have a focus on having the best the arm three to the market that means will continue to invest in our existing of the and continue to make a new investment in additional have them there's plenty of ideas are mark regev came from our annual strategy off by in june and we have in our collective head product innovation for the next fifteen years and i the focus on horizon one arrival do what what i've read bad have worked really well for the company and my job of to work with brian lara measure the really and power that type of innovation body forward as we've done i also think that if our focus and drop of all of that segment
spk_13: know were fired up every portion of our segment and way i look at it is how do we continue to have to my where we are strong which is the twenty two two hundred segment but how do you continue to optimize the product like motion at the bottom man as well as the upmarket market motion through the in
spk_0: that that we have and though that will continue to be the focus on ah
spk_12: huber invited a i think we have the right leadership team in product we have the right leadership team an execution falcon team in the go to market and i'm really excited to work with oliver excellent to do enduring next question is from grad flow from bank of america's security your line is open oh great thanks guys and congratulations ya buddy or bryan on your on your new roles well deserved both and for i agree to here for you as well op for to hear your voice again
spk_0: what you don't think the stick out for the on the corner would be a p acceleration in law could be driving that obviously you're executing up market you're sick operations hug traction it scale with with some of the early results they're my question is where is the incremental a of pete rose coming from when you when you look across all the different lovers that could be driving that larger customers or enterprise up pagan and up so operations have multiple products there's a lot in there to keep this baby be just staggering what's the driving back to gallery show that thank you yeah i'll take a shot at it i think that is ah it's interesting to see where we had a really old or an adult other you were at are you to feed the brutal drivers of that is the a new business aren't new and were particularly strong in the professional an enterprise here with tend to have a larger f p
spk_11: we had a really thrown quarter selling into the all leave the including
spk_14: record corner for nominal upgrade from starter into professional and enterprise here
spk_0: and then you know you often thought of fueling of the cross that all with the in addition and out of the operation
spk_1: and then i guess the final thing that i would highlight is just an expansion in the number of people that were seeing seeing our professional enterprise customers on the field by thank you
spk_12: our next question and farm hands last year for morgan stanley your mom is open
spk_5: berber cop big too much guys and graduation on the backs of he moves are within the company in law grind always great to hear your voice back on these calls on and looked to question from my end aren't you mentioned the pricing changes the you guys made some of the
spk_0: awesome the of the prime minister could you walk through the into the spirit behind the the patient you use your wine what and it's more like that the present is it very say that the you gonna follow a similar strategy ivan basso grandfather existing customers and chains are mainly for for new customers and am a quick follow yeah i think like family question i've enjoyed all our pricing philosophy is twofold what you will see a few in continue to bring high value added features down to a freemium and starter care and what does insurance is that we manage disruption with and on install base versatile lobbying competitors to disrupt off
spk_12: the second part of the tragedy that it also ensured that we keep innovating and adding new features to are higher tiers for all an enterprise
spk_0: and so on that are broader pricing philosophy if worked really well for on that's exactly what you thought do with sienna as we been added more features to enterprising for we feel pretty comfortable that me aren't delivering a lot more value to our customers and therefore they're confident in kind of thing rethink that fries and i in terms of your second question on grandfathering very similar to the for wall you know our first rolled about the full impact of the new customers and another period of time gonna go on israel book on and then on the volleyball on the net revenue retention mom i know you guys don't really have i didn't have given every corner by just me because the only direction late on how to do relative to the the really outstanding results you guys up as put up a not you want
spk_12: yeah think we thought another really drunk quarter of two hundred all attention and that rather retention know the story that we would tell you about retention and you to and basically the same story that i told you that retention and que one in start with that foundation a customer daughter eventually where we feel like really healthy ah trend there have been the back half of twenty twenty and then again similar flat quarter there are a real diversity in terms of the up solution that are driving a positive net revenue protector thank you are next question in some can walk from guggenheim security your mind is open
spk_7: right thanks for take my question and it and gonna can grab the caught the board from for me as well
spk_1: up building on understand question just on on female top the law to think about that
spk_7: of the new basic few there it is it's intended to get the the laggards over to to adopt or should we viewed it as a potentially a a way to open the funnel or into the up spot franchise are using julie cms
spk_1: that's the great question can buy you something of that that would think about the about little and why room that the good so a lot of thing that make up but you need the low other leading feel and platform that have a a legit called american but the lab and or know about bathroom offering or yet get the bubble lawyer that i've read that is because it's really hard to build a vms i'm in different from everything else is like a glock trombone
spk_0: he did it for okay well it kind of already have to go to you that blighted think that if i didn't didn't either a lot better get the gold on i don't like it a little bit and musical term case and is your one thing but he had the real but we have a merchant and you need a trombone that will get a complete the big and felt he needed to be like all the your and platform you need a pls
spk_1: the regulated not just about putting a website up there it's about making the went by the window into the back and data into the pyramid of and bringing the customer in it but fourteen that collection for will really excited about it into the wind and we like a starter here it people that what you were looting do we've been getting good a web experience up in the first get off
spk_12: open in the deliberately let me customers the take that first them correctly want to bring many people on the platform even gonna start really possibly can and get them on the live with your life of the hotspot an open cut it with the were them or hubert that about the average yield
spk_1: thank you are next question and from our kind of farm woefully heard sure line is open
spk_15: hey thanks guys on the brian first grade two groups have you back centrifugal germany
spk_7: really excited going to work with you maybe many different first question for ya many if you think about the would you see in the pipeline what you see and customer behaviors as look out to the second half and into a new post go the world can you to compare and contrast that with our do what you saw in the first round and what you saw the second half of last year on force
spk_16: a i felt that that actually not going anywhere on in the bucket of chairman in grant village
spk_11: a dell prefer for a long long time and can be very at the bottom of the guy strategy and burning down leave so
spk_0: we're not getting rid of me that he usually my britain i'm of
spk_17: five would echo that i you know via like few bracket of all sounds got all the bar and not though that pretty good very glad to have him back in full board so alec cloud question in terms of i demand time and comparing first half and second half of the man environment
spk_0: all it similar to what we saw in the last quarter now if you started back our product is really unique let them to competent our competition fascinating have a very very strong value proposition that is resonating in the market and line talked about going to be that big in not product investment in the past few years and good thing all of that pay off we normally have that market fit but the all but have a golem like and fed and a combination of those two are really helping out drive really strong financial results in terms of pipeline i'd say that the digital first and digital ready are all about those friends are here to stay we're not going back from here we are clearly feeding our customers modernizing their the arm platform from website to marketing sales and service they're all focused on dello brain are connected customer experience and that's the kind of customer input the beard scene from a pipeline
spk_18: and i in july at the very beginning of the quarter yeah actually gave our entire global employee days a week of rest and we did that are you know it was a very important choice we care about culture we care about employees we wanna get into rest reach ah
spk_10: orange and come back with a full focus and second half and i was right thing to do and i think i read it even got a second half and looking forward to know what you're going to do and i half
spk_1: thank you are next question and farm drew foster from philly group b a line is open
spk_0: hey guys thanks for taking the questions bird you doing all brian and director know many rules on you're given everything that's been said about the importance of digital channels it's not going away can read in a bid on learn that logo retention into the end as you reflect dumber sort of a more protracted period maybe two or three years we're gonna the one or two things playing the the biggest role there that a greater share of customers using more products and does general guinness on the category more broadly rising and strategic importance maybe just given up didn't have the drivers their decks yeah i'm either will probably talk in a lot more detail around retention in general at the upcoming analysts day that i would give you may maybe a couple of point to take way of the customer dollars and then would not the same as will go retention but is sort of the faith live have how we think about it internally it's very strong and showed improvement through the back half of twenty twenty entered the that that new elevated level for the first and second quarter of the here and he'd i think it down kind of elementary but the truth is that what we're seeing is that our customers are just using the product more and of the turned out that leave i'm sure
spk_7: and we are admirable enjoying really healthy core retention
spk_0: thank you are next center and from carrying kilmer i'm sure of securing your line is open yeah they do in bryant and grandson the logan the next chapter but i think i'm one of a lot of questions i think he said you're going to be on call going forward dominant not my date case the won't need to you on the next fall out if you're gonna be back and good regimen is well i guess my question is would like to eat the embattled a couple times in terms of stalled base selling strength ah to do much my ya many being and created for my mistaking luxuries about of have learned some things you've done internally the honor programatic bases to kind of china doll more and or investments and an illness more on issue would more in the future where there's more of a structural have where you're just getting a lot more from the install base also and each quarter budget but carry thank you for the reserves i really appreciate it i think in terms of the in torbay like our existing customers on now have a lot more products that that that they can adopt right and in the past couple of quarters within youth operation far we have been proved that addition phone number of hobson for their the lot more product for them to and ah in my the guy that product has gotten much better so when our customers are on one have the and then they see the value of a theme was ah single data model single is the bay but rather have that naturally both them in ah be sorted thought of park investment are probably the first one but i talk about
spk_7: the second part of it is that we certainly from a gold market reflected have i invested more heavily in our customer service of accepting working more closely with our sale theme and that helps of connect the dots in terms of install base and that certainly been part of it now before i think
spk_1: we want to have a balanced approach we would you know we continue to acquire a lot of new customers because of the strong value proposition that be gulliver and be continue to fell into the install base though you'll see a battle of the both of be across our future wars
spk_0: thank you are next question is from between hi i'm from can afford your line in open a guys director on the new rules and the continued success it's a dozen the seed because a go to market question on operation top issue is the buyer there's somebody that you're already talking to what you're selling marketing and sales or is it somebody else in the organization that that sits on top of those efforts i'm just trying to think about your biggies across ellen what are most cases it's with somebody you already know much more your with of luck as a great question dj a fantastic question i'm okay the buyer for operation ah is a revenue off persona and i spent the better part of the couple of decades thought in vr i'm running these operations themes and they're really that know earth centers of go to market function
spk_5: there's some kind of the on thong hero but they have of really critical role to play with your providing the single source of cute about up numbers food and feel that the marketing and ahead of customers except that the persona and a thought they've always been involved in a theory her
spk_0: and now we're providing them the flexibility in the power for them to deliver insights into the front of it and if you really set back on operation hobbit the couple think it really helps our customers connect their tech fact it helps our customers clean up the data it helps our customers automated the proper the then the great challenges are traditionally the one that revenue operation themes and all of our customers struggle that and but really are helping that critical for sonar be very very successful and the a lot of traction as i mentioned in my prepared remarks you're seeing very positive feedback from our customer they're full of partners than programmable army russian and then on fire really good traction
spk_1: three you gave up that is that the drowning in a want to do advanced lead routing you are able to pick you know all of the data from beyond the all the bigger out of with the rectify the be wrapped seniority rep on vacation the rapids on sabbatical and you all of that information can now be able to automate your prophecies
spk_7: and so operation tab for by flexibility automate prophesied and huber charges are theorems sweet
spk_0: thank you are next question earth from brian peter singer from raymond james your line is open a big for taking the question embroidered it boys in the guy the wrong to brag about your the on the ugly roles to to meet you just use a higher level question for me you don't you have to unite you were look at the pace admit new customer ads i'm curious how much does the platform taking the branch of functionality between different areas come up or you are agatha be prepared homes coded are people are looking to to me to consolidate vendors and in piggyback simplification of additional get a market model is that something is coming up in a lot more conversations a good how do we think about that impacting winglets like you yeah brian i live our address that a manner of have medicaid car or gonna jump in ah you're you're exactly right like if you think about our customers they're coming through this whole pandemic same one i need to digitize my entire front office and the starting point could be very different the starting point can be a bunch of point solution they could be greenfield feel using something like a project or they have a legacy system and are looking at from biting an entire connected customer experience and therefore having an all in one solution rather than a pretty deeply with them and of that part of what they are enabling you to the our freedom and we definitely see
spk_7: that you know motion the getting to happen and i really want to give you the invest in vr and fleet and adult he completed like very powerful one other thing that for off work with back and you get the arms when the hands of new customers or in the think of mirth they now be the power of entire platform their entire product usage therefore we get much better feedback on a product there for we can improve the product and of the nice little fly deal in terms of how we can drive the quality of product even higher and though a lot of goodness and certainly that's what we're seeing in terms of trend from officers that lumping all added that you're being in with as you'd expect the people become can be lower to make that digital defamation digital first
spk_0: a bucket of half the digital transformation it up and often had good intentions a really terrible idea implementation it's so complicated because they are all the data be multiple become so that kind of value proposition of of a which would weaken simple by that we can bring it all together to one offerings to one platform one database one experience one company the call it the
spk_19: very compelling value proposition because most of the mid market company of the complexity of the pale in the hope of that is relatively well
spk_0: thank you are know question is from park line from cancel your line is open
spk_6: hi thanks for taking my question of he did a tremendous job in last year's is really making the platform applicable to cut turn them all side is it a starter and and or presentations while your tools as just wanted to you talk about the molto product and adoption across different tiers is it mostly weighted toward the enterprise customers that are you
spk_0: using multiple huntsville products are you think a lot of traction as well to the point you're just making an adult started level about getting them into door and in attached to your solutions are under digital lab next maybe i'll start with some number than half that on kill ya me pirlo that more color and contact you know we've talked about this for a number of quarter the growth and are multi products adoption so customers to you two or more of our product has been on that front of that trajectory up or a number of years now and and not have happened across all of the are here from the enterprise darter we get see a bit of a function and flash and laugh spring when we introduce the thirty grand fleet at that really simple fifty dollar price for ain't easy to buy into with the a lot of uptake of that starter level of just the old fat of that product yeah i think here to admired prepared remarks were at fifty eight percent of our customers you are using more than one hobby approx and when you look at that new customers or fifty fifty now adopting the ball have a problem yeah i think got to add to the commentary that kate provided think if you step back we fall something really important you know having all of the product with a week we take a very proactive approach to the rm he did not although together through after the returned and i if you step back and think about the single biggest challenge for customers they're putting together very complex tech stocks and they're spending a lot of time on integration they
spk_1: been a lot of time on developers the i you know and a lot of resources there and get the customer experience there and customer experience does not break for that and therefore for of are you know the focus on what the have into provide a one data model
spk_0: a single view of the customer a simple interface that easy to you that is crafted and not cobbled together they they got that's what our customers are like and that what is resonating with market thank you are next question and from line mcdonald from need him and company your line is open oh out near him on for ryan congratulations on a strong quarter also being just to get all that the additional information on the strength and the international yeah i'm fine thank you for that question of what we thought very good the silk road both in north america and or at international if we mention international has been going really well i think you're over your viewpoints up from last year the
spk_1: it is get back on international the market there and digital transformation is an earlier stage lot of her all the customers are in international markets are looking at being digital for a little ready and relief and earlier stages which means of an even bigger opportunity for our big the second far
spk_20: the are is that we've been investing heavily in a lot of the international market from product localization in terms of content for lead management in terms of customer facing resources and even brand and those investments are paying off or l
spk_11: tv to cactus really solid in the market for the will continue to invest and into that market i think i got important because that north america is a really big want get them stop doing well do with increasing very bad and consistent growth across all of the market but the operate in the athletes about that
spk_6: thank you are next question or from for feeding the funny granny for me to watch your line is open
spk_0: however but it's met them and on for city it one quick question for me for anything to be called out for the liberty of bookings is quarter your tone certainly suggests that there's some incremental conviction in the second half i'm curious if something happened in the quarter that my to catalyze that that may not have been asked
spk_12: or directly
spk_15: no other nothing but i world
spk_1: i would turn around linear a book
spk_7: thank you or next question and from michael karen from one fargo your minute open
spk_0: hey their banks good afternoon i'm jamaican grounds for the promotion i hope regardless you're planning to keep the hold music drawings cause the same yeah i need i go to sleep it's much more pleasant with the the gym is the classical so that certainly appreciated i've been there before questions on it but the average revenue per customer metric certainly feels out as do comments are just back for patients that trying can hold for the the yourself can we just go back to that i'm wondering if some allowed to i did it it's been the other side of the strongest rod strength we've seen over the past year than just how much the new and and what you're doing a bumbling also just helping out there thank you yeah i mean i think you've got it in terms of the underlying theme we've we've talked about the past there are in the last quarter of a quarter variability in the katie i'm metrics in particular the customer additions in the us our keep the and you know what we thought that quarter was stronger professional enterprise trying strong and doll they selling trying and of result what you're seeing is that and answer p c
spk_21: you know up likely you're over here and frankly if you checked out the starter and looked at a a thirty feet it like of even more
spk_10: and thorough you know we don't guy with a you know to ah arcade yeah network and the frankly we don't guy that the how he manage the business and so nice sheriff and commentary around back half in the prepared remarks
spk_0: around the expectation with we think that ah we should see that customer and for the back of the year in and around what we thought you to and with that would calm and and sarkozy growth and no type single digit thank you are next question is from michael current farm keep on capital markets the line is open and group us can finally owning i'm keen to briefly mentioned was on on the to strengthen the in the pro and then position for a new customers anything in particular drug drug dog can see the twenty two out of sterner while go to war price and interview cause repeated that strengthen the and the pro and enterprise and for new customers is is impressed with how do you get that your faith or any of this is is not a new thing for few three for future we talked about one quarter as well
spk_7: we'd had a really strong new customer additions and prominent uprising he was having huge you
spk_10: and i think for all of the reasons that young and talks about throughout the call
spk_1: thank you are next question and farm land bring flynn from proper handler your line is open
spk_17: did you and in germany and retina promo brian not always agree to hear you're helping but so great to hear your plane to remain active with a butter can you hear again one of the go back to the durability a group here we've been trained here the last four years not to think of he has a pc as a driver to growth
spk_0: in fact has been a slight drag the growth was four years this quarter five year have i had percent it's emerge into a little roof level to the business my question is are we entering a new period where we could see both strong new customers additions in this revenue expansion and sort of pc expansion as a incremental lover to growth for the to only the to really weigh in on that a get that you
spk_22: as media comparisons here but it does feel like we are entering a new period here where this could be a nice incremental lumbered a group as well
spk_6: yeah i guess what i would tell you is and we've been talking about that the will last three quarters ah
spk_0: is that we had feel really nice customer and and quarter over quarter expansion of f r p c i think the corner market a little bit of a different ah mile from where we're seeing a real increase on a year over your papers with wow i think yeah what you would be surprised if i declared dump hear what i'm gonna tell you is that we're back that we will continue to see variability quarter and and quarter out of srp fee and new customer add enough gonna come out of the innovate innovative the high an innovative below and you know into you for new product and federal aid i think i'm here at our application for the back half of this year but i don't think we are at a point where we would declare ah
spk_7: survey a long term trend at that point thank you are next question on kirkman turn from evercore your line is open but up and for marginal ago the congrats to buy brine and know i nominate maybe just on the pro and enterprise side of the business see such good traction i was just wondering how do you think about the evolution of sir your part require problem as you start talking more these customers that have many more bespoke needs are the things you're
spk_0: thirty one hunter blue try to leave various features for your partner's to the upper you think about are focusing on partners that might have more vertical expertise in certain areas where you're you're seeing trend i guess is that a high level your hurry big events or the evolution of the the partner ecosystem thanks sure allowed the directly it only think of egotisms lucky multiple parts to their the a platform of everything is done with weather's of of in building integration that extending of spot and they are these solutions are the legal system which should be done about target a blog and then bringing third the market ballots are ya me into the the beatles other side of the out that for wifi no retraction more north of the building extending of body the navy i love and the thing you love about that in that america has been of the by will the more build applications we get a more about us will probably fall foul we feel a strong correlation in a number of apps on you did than their retention rate that album or and the more apps yeah have the more us when we get low income each other that you'll apply fly will go be a couple of going really well now at the damage bigger the easy part of oregon i think god that is really good commentary on the outside i think on the solution for her thigh
spk_5: we are diversifying our entire mean and our partners are continuing to in our go there in terms of the i'm implementations integration much more complex implementations and we are really focused on that earlier this year as partner kickoff we
spk_0: he went to a partner to me that look we want to scale with you
spk_1: the strategy have been scammed with partners which means we will sell more partners and enable our partners do service our customers and of good for our customers and that the partners and therefore it good for hot pot and in terms of the investment with our solution partner ecosystem
spk_0: whoa are continue to work on improved incentive we have been investing pretty heavily on enabling our partner so they can go to market with us than we do product launches that beginning to work and will continue to invest in scaling services through the partner of them so we definitely see them
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