FiscalNote Holdings, Inc. Class A common stock

Q4 2022 Earnings Conference Call


spk_0: good morning and welcome to fiscal note queue for fiscal note que for twenty twenty two earnings conference call advertisement or now listen only mode after the speakers presentation will conduct a question and answer session
spk_1: to ask a question on the press star followed by the number one on your telephone keypad
spk_0: as a reminder this conference call is being recorded i now like the call over to share a buddha vice president of investorrelations big you please go ahead
spk_2: i everybody what comes to the physical note que for twenty twenty two earnings call during the call we may make statements related to our business that are forward looking statements under federal security blood the statement or not guarantee the future performance rather subject to a variety of risks and uncertainties are actual results could differ materially from expectations reflected in any forward looking statements for discussion of material grip another important factor that could affect the our actual results please refer to or ftp filing available on the at the feet a group that them and our website as well as the rip another important factor the captain and on a relief additionally non gaap financial measures and other kp i will be discussed on the top and call please refer to the table been earnings release and the investor relations portion of our website for reconciliation a big measure to their looked directly comparable gap financial measure with that i'd like to turn the all over to the school know chairman ceo and cofounder than one
spk_3: bang theory thank you for joining up with morning on trade call old you are fourth quarter and for results for twenty twenty two now for some perspective on the fundamentals work is it but you build an enduring good company with compounding subscription revenue growth strong gross margin and overtime and in practice recast will model i'll then turn it over to our see approach on label the talk about the details were financials and our outlook for the year at ease with we'd move toward inflection point the profitability before board again at very of you are new to this story when you start with an overview of who we are and what we do at the school know what a mission to help our customers make them to the complicated and cod be changing world we live in we do that by delivering a proprietary that platform that you did artificial intelligence the collect and alive and sympathize mad to them out the regulatory legal and policy information you then apply human intelligence that workflows make the data usable an actual for customers changes in policy it's regulation and low impact a decision making almost every organization around the world from changes than regulation the mandatory reporting requirements the organization not comply with off not a global basis at that we're building an enduring company for the world most important and influential decision makers the customers range from hundred the government agencies and public that your customers the department of defense the white house every member of the house the fed it in the united congress the better with dirt and public sector organisations europe and asia the major corporate customers including have the fortune one hundred and he did be unpopular ever shipping regulatory political and geopolitical landscape and countries around the world if customers want to work everyday help interpret the impact of policy legislation and macroeconomic shit on their tuition more importantly the take action which cheaper to the subject is the minimize political and economic with that forms the basis of are durable and long term growth and without the company we've been building a category creator which coddling innovate the term impact of the action convert challenges and the opportunity and mitigate risk to protect operation
spk_2: it had been we become an increasingly mission critical and ubiquitous limber terminal a political way to the regulatory information at the local state federal and global level
spk_3: we've been that the ten but millions of dollars normal ten years building a defensible combination of data information and artificial intelligence technology select sympathize and make that the been exploding paid and boy the dynamic unstructured regulatory political and legal information around the world as well as backward what the hell albert customers or spot the same way that other information copy that is that the peak level i checked market back that morning star costar an apple era of innovate in their respective information feel it got can pay deliver mission critical information that had a direct impact on our customers operation
spk_2: now that we've done right the company's financial position that terms of the plot by compounding profitable growth in twenty twenty three and beyond
spk_3: our revenue country of the grow with a large customer base that renew his contract and subscriptions every year
spk_2: for wait wait you we grew our gap revenue thirty seven percent you on your to about one hundred forty million dollars further evidence of our ability to deliver compound and growth you've been in a difficult macro bargain
spk_3: looking at manager jp i'd be grew our run rate rubbish two hundred and twenty seven million of which hundred twenty five million was organic
spk_2: or any other kind revenue which represents bad for said the total revenue with a hundred thirteen million mark and growth a fourteen percent year over year and thirteen percent on an organic updated
spk_3: and we increased or that gravity retention to over one hundred percent on a thrilling for but basis a strong word flesh of are successful crop bell and up the model and the month tab mission critical solutions with a lot of our customers further we also provided got it for twenty twenty three the indicate another stronger growth and that the political move with gap revenue of one hundred thirty six million two hundred forty one million or can growth of twenty twenty four percent year over year we also expect run rate revenue a one hundred forty eight million two hundred fifty five million the year underpinned by a recurring revenue without the bleachers customers and high retention rates
spk_2: as we're proving are durable business model create the high degree of predictability we take our customers with the previous year when you them and up so that customers with new product capability to gripe it it while simultaneously adding a cutlass each year beat cop make paid to renew it hired rate because of the strength of our product and a deep cuts relationships that we get built
spk_3: just got have always been differentiated given not only recurring revenue base but also hi adjusted gross margins which your the eighty percent wage the the just the gross margin result of our staff business model a i pedigree and beta which products the by the data for strong free cash flow the future we were made on track to be a job the unit that popular in the fourth quarter of this year furthermore our growth hide net retention able just gross margin and increasing efficient been operation that we're on track to in practically castle margin the future beyond the near term budget positive you did not profitability about the we are well capitalized from a task respected you to the public would be brought that and the proceed to be repaid the summer of last year your capital i fully and do not require any additional capital rated to achieve our plan a positive object needed that profitability and free cash deposit margins and finally the compliment a recurring revenue organic model we can pay the fine feebly added at every opportunity for growth at evident by or most recent acquisition which authentic got the ability at the new geography the customers but that eastern europe and africa would pp global new technologies such an alternative and macro economic data and a pack with i technologies
spk_2: rj and product and capability that your terrorism vibrant operation the risk now for governments and companies with dragonfly
spk_3: the that with vision and play the fuel additional growth factors for the company in a number of new direction and provide a pathway a long term compound and grow our acquisition pipeline will be impacted but we can pay to be thoughtful and villages or the pursue accreted acquisition and valuation the lot of the fundamental to the pivot and build structure that minimize solution we prudent and repeated kept locators and will always be judicious apartheid that the truck highest return for shareholders and deliver results for our customers john will get into specifics of our financial that details for our outlook of twenty twenty three now let me touch on the strong been met with is it that serve the plot report for growth and twenty twenty three and position to deliver outpaced returns over time as you can pay of the allocate our country coupled with struggle out your problem grow first or strategy begin with a large total dreadful market with secular trends related to the ever increasing rapidly changing regulatory to political and economic operating a bargain
spk_2: expert besides fighter path at thirty seven billion dollars which is what campaign organization spend every single year on products and services related the legal regulatory and policy and probation
spk_3: our markets your been by political event and regulatory environment that we do not be flowing down i believe the will complete become more and more complex than both or customers military conflict and the border regions across the globe local markets supply disruption the transition to new energy economy and emerging technologies for regulators and politicians around the world to respond with new regulation which in turn creeper thursday for organization give trigger then create demand for product at the impact and enters a customers respect that the exploding bible unstructured dynamic regulatory power be a macroeconomic information to drop uncertainty manage risk and make decisions about operation that strategy historically making sensible information has been a manual and opaque process leave it were me a map that underserved opportunity to use a i'd the structured more like a life and digitized all the population get good it now position better than ever and better than anyone help the world understand what exactly is going on in palpitating around the world from all out war and military conflict in eastern europe to the awakening of a new relationship with our public services after the deadly pandemic it over century the world have been increasingly complex and uncertain place and we believe that school well positioned to be the primary beneficiary of the ongoing paula deen regular complexity and risk exposure we're still just getting started
spk_2: i blinked apple the european market than that one of the most regulated market for the planet and yet only ten percent of revenue comes from the market we're at the beginning stages of our european expansion and i believe that them or the other large scale information services leaders we can build a bit like a rival a patchwork north american business with just our current product today
spk_3: of course were simultaneously pushing the boundaries what we provide our customers because the innovation and by expanding the area for two years she and the point that provide new adventure go to the future hopefully with a mobile good doctors to prescribe the capture the large market of legal regulatory policy information the second point a fundamental it or saleable operating model that long term or unable to drive version of incremental rabbits operating profit the modeled quite simple we have a proven between to get a group add to that are am a programmer puck an acquisition that brought in our reach and crop though you renew
spk_2: our customers year after year and expand our relationship by adding you stated that the product
spk_3: did did the compounding recurring revenue growth model be proven we did model were dropping adjusted gross margin that the eighty percent which you walk the dog a strong operational foundation and aren't the though the marketing and she had a support the operation of a large growing durable public company at the forefront of ai without global operations from washing be the new york off impact that medically with gotland london brothels per gallon to thing a poor sydney and an ip the give us more reach than ever before and the operation political opportunity moving forward we can build on foundation of recruit further as ronald pill we have made and look completed rob efficiency in the organization using technology at work for improvement and i find a area of expand pretty can efficiency finally and perhaps most important is the fundamental competitive advantage a unique indefensible combination of data a i and human intelligence we have been incredibly comprehend to that data that be collected over the past decade of significant relevant to what government the the private sector interested in we open have been incredibly comprehend the ai platform that we'd the aggregate that the bite and structure to make the to the data and we have the human intelligence and the taco workload to make it usable and actionable for customers further are ai model incorporate the in fact the game but bowed the customers that we have every single day to enrich your product that combination of ai data great are sustainable technology though as we have seen in many industries would beginning to see significant bet that are shown felt it was it especially encouraging is good at began to the ai technology is equally chat tpp and tpp for sure to enhance the elevator goodness you put a great the man and increased operational efficiency we believe the company should of generalized foundational the i models with that was the main with a bottle or great defense will inflate the will further able to efficiently optimize your data collection efforts are building novel application and user experiences that it this isn't people particular customers
spk_2: the advantages of a acceleration genetic that adult in multiple ways one in various related customer experience the just after predicating and data collection efforts using a machine learning and tremendously advantage another it more efficient and effective operation that shed a larger level personalization caught the dissemination and review a more efficient customer service and engineering automation we have and will compete incorporate element of a i at all levels of the company drug competitive advantages and differentiation as well better opry markets for the company lottery for instance when out the collaboration with okay i would demonstrate the conclusion market leadership in ai leveraging the most cutting edge technologies and the state
spk_3: the expanded user interaction to language models such as open a i will help create a flywheel to strike future product development of it's got me with bottle and had accuracy and relevant people are customers and enabler to swiftly than their leadership and the application of a i am large language models related could be less likely that them in thumb the don't give you know our team you know that we are pure it's building efficient did it the strong fundamentals and for deploying a resilient capital allocation model for long term growth and cash flow that's exactly what we've built here at the color
spk_2: our capital management strategies put our foundational go to been and during profitable leaders are sector all capital allocation strategies or a the allocating are high and capital on those actions the track the greatest return and that minimized solution for shareholders given that strong fundamental to the recording revenue business with high gross margins we believe we have more flexibility the others the at the top of that areas greatest return that and added paid we are inherently costs focus given the emphasis on a kept allocation we have and will continue to drive efficiently than our business wants sharing your innovating for the future
spk_3: with our cash of the balance sheet and access to our korean we have sufficient capital to school record and ponder at a day as we change our that even thought profitability goal this year will be well positioned the trap origin lot of other leaders and information services
spk_2: before turn it over the job money comment on the titanic birthday the public market by all accounts a company that a great position on a fundamental basis we continue to grow can think of anything strong relationship with customers by retention and subscription model continued support hikers martian and months of because generation and continue to innovate the the future by expanding our products wheat and geographic footprint
spk_3: despite this and you can be there's a clear disconnect between both fundamental to our did that and our public market valuation we believe the implications temporary at long of the fundamentals compete deliver for the business there will always be option the creek diaper for shareholders in the long run we're doing and will continue to do at match repeat that the building and during long term growth topic for the future one that delivers great products and services the longstanding customers and maintain the high rate of gross profit for reinvestment to the future to despite short term technical gyrations the other markets are we to throw me that he and the long term opportunity for kids it had never been more clear at the band the your bedroom grapes that in the short term the stock market at the body shape and long term with the wings shit in twenty twenty three weird and environment with kind of coming out and recurring revenue better hi gross margins battle longstanding cut the relationships matter deeply experience that committed bad teams better and differently the technology and proprietary product batches matter when the dust settled from the capital market and after the market before it be in a fight the wheel businesses with strong fundamental i believe that color will and had proven itself a bit of that matters in summary as the look back on twenty twenty two on the fundamental status i'm delighted with a bit cargo we believe that god well positioned to be the primary beneficiary a global policy complexity given the myriad of political economic and operational challenges exit we are proving or compound the growth model the combination organic growth and a creative emanate underpinned by our diverse which cuts or base we're building an enduring and resilient business and a growing increasingly important market we're growing elite geography market product areas and customers like the great contributing factors but top like earth innovation furthermore in bed with an ai benefit us cause of the differentiation and targeting the pot light an efficient the automation bottom line given the event that about it that we have we're further delivering on the commit we outlined in a lot call by coming in at the high end of a rapidly got it was strong that retention gross margins we're at getting on twenty twenty three plan for ongoing rupnik road with a clear path to profitability we are fully capitalized on our plan over time little translated the groin for capital marching in a well enough the lower our coffee chapel and grow up in it into the future and finally we are led by it that the blend experian exceptionally proud badge repeat with a relentless focus on dana gould profitable growth and more capital allocation the building and during company for the future every single day we worked on the trot of thousands of the biggest and most important company government and people the world who realize that good wishes cover and navigate the impact of government policy making on the organization and more importantly the take action which achieve the business subjective this was and remains the heart of our vision for customer i've never been more passionate about the bishop and more optimistic about our future growth opportunity with that alternative or to jot it's got a financial on about what
spk_4: thank you tim we get burned a new trying to go full details on the fourth quarter inches good year for twenty twenty two also discuss what you expect in terms of financial performance release year in want you are can't be positive adjusted ebitda in overtime richard us actual let me start of revenue the corner wherever news thirty one point four million dollars mardi gras age of twenty nine percent year over year in total and eighty percent growth on an organic basis
spk_2: so you're twenty twenty two revenue was one hundred and thirteen point eight million dollars marking thirty seven percent growth year over year in total and fifty percent growth on organic basis which excludes the twenty twenty one twenty twenty two acquisitions and sunset revenue non gaap revenue the hundred and fifteen point seven million dollars should year we'll prove no strategy deliver compounding are driven by nature and organic growth in a creative strategic tolkien acquisitions that we can immediately crucell a nutshell to our customers this is gonna track record reached out to continue this revenue performance move it forward
spk_4: both corner situation that needs makes up almost ninety percent of a total revenue is forty seven point three million dollars in increase for six point four million dollars or about thirty one percent from a year ago and fifty percent white and in a daily basis your twenty twenty two subscription that with over a hundred million dollars an increase in approximately thirty six or seven years when you're in tomo and guilty for segway bought organic places which again exclude for twenty twenty one and and twenty twenty two acquisition and sunset revenue you are evaluating abu and the other that you know it's four point one million dollars in the fourth quarter of two to three point two billion dollars a year there you go later forty nine percent year over year
spk_2: we actually twenty twenty two with one revenue the hundred twenty seven million dollars in total working forty percent year over year growth one way wherever you is defined jr
spk_4: touchdown subscription revenue or during the past twelve months
spk_3: it is a key manager metric and served as a baseline for the upcoming year
spk_4: but an organic patients one rate revenue was a hundred and twenty five million dollars also referred to the fourteen percent growth workshops on the basis we go total annual including read
spk_3: our to two hundred thirteen million dollars as of december thirty first increase of forty percent of
spk_4: to the same period and twenty twenty one organic a your was one hundred and twelve million dollars a year read this represents a fifteen percent glittering you failed to our a on december thirty first twenty twenty one or the persona patients
spk_2: we only be here with an or or net revenue attention but fortunately one hundred percent on a truly twelve month basis lorena rage can fluctuate slightly from quarter to quarter we're delighted to reach one hundred percent mark which from scripture school note killed by strategy level a customer relationships with strong cross out in uppsala efforts
spk_4: looking girls project we continue to enjoy strong margins are que podemos us it was twenty three point one million dollars represented at seventy three percent margin a fourth quarter not go right margin was twenty five or six million dollars represented eighty one percent gross margin that you're just for food revenue and amortization before we are twenty twenty two are gross profit was eighty one forty eight million dollars for seventy two percent margin and are younger gross project was barely two point eight billion reflecting lady percent gross margin
spk_2: he'll be marketed cause with forty two million dollars to leave new the notable increase from a year ago largely due to acquisitions or the expenses were twenty four seven million dollars should year a reduction of about four million dollars a year ago during tortured to increase software capitalization
spk_4: editorial content cause and twenty two approximately sixteen million dollars a million dollar increasingly the last year here their expenses for twenty twenty your was seventy seven million dollars this includes approximately thirty seven million dollars noncash items primarily willing to be killing treatment of noncash stock based compensation expenses you were triggered as a result of a defect public restroom introduction it's why do you have no interest charges a was approximately thirty nine forty five billion dollars an increase of eleven million dollars from your go largely driven by the increase public company expenses
spk_2: oh provide some twenty twenty three up x details of another
spk_4: a totally interest expense for the full year daily five point seven billion dollars which includes against significant one time noncash charges relate to the conversion was like a convertible notes as part of a business carbonation public de gracia us a fourth quarter it was expensive approximately six million dollars reflects or cash noncash interest and reflect the workload get profile going for the expect to pay approximately forty five million dollars of cash interest each quarter also contribute to are no laws and twenty twenty two was announced as charge for eleven point seven million dollars related to a loss continue to recommend as a result of the previously announced for chose lender settlement agreement also somewhat one time charges we haven't been cash gain of approximately sixteen point one million dollars right to the mark to market of the public and private worldwide daughters and a seven point seven billion dollar just don't ask him from the forgiveness of the companies tpp one the gap no was for fiscal your twenty twenty two was two hundred eighty million dollars which is reconcile to adjusted dollars or twenty four point four million dollars in a press release
spk_2: rebel should remain it's solid was sixty one point two million dollars cash cash equivalent to the december thirty first we conducted station cash forecasting scenario planning on a regular basis your sufficient your apple unsupported will conditions in fund a path to bother with the just to be bigger than the fourth quarter
spk_4: ishmael beah further we're taking steps to reduce or josh expenditures before he work out for twenty twenty two for the for your we to one hundred and forty eight hundred and fifty five billion dollars and consumed by breakthroughs an article was from dragonfly and excluding any future acquisition grenade that we've set up revenue of one hundred thirty six two hundred and forty one billion dollars market growth twenty to twenty four percent year over year including the acquisition of and fly out an organization and hundred twenty three months like to deliver another year of mid tempo data grow and turned the t join you for those who follow fiscal know you are a significant portion of their revenue growth occurred in the third and fourth quarters are filthy was and optimized for good the never go away the higher recognize well throughout the course of you need to twenty twenty four we expected you adjusted gross margins new approximately nine percent and adjusted either dollars between eight and six million dollars for the full year she the just a deal about profitability and to for the now looking at fourth quarter with that rogan your between thirty one thirty two million dollars wouldn't adjusted ebitda laws seven to six million dollars for this level of a job to do with our losses seen highlighted a foreigner guys can one includes going to help dollars a seat in a public company cause including our first year on it after listening and he's were low revenue or conditions one the other calling idea going out where you senses return taking steps to reduce costs you more increase efficiency and productivity good measures will drive significant benefits that will translate into mean for bottom line improvements sergeant you to read really paving the way to adjusted ebitda profitability you for this year this includes many districts across the board such as adjusting know talent allocate allocation models and locations a line a revenue generated change to the highest potential clients market segments and for your internal processes and outflows a consolidated reducing and way they spend the next door locked onto
spk_2: actors and vendors for example we've already relocate in the joys of a customer support teams to lower cost all sure locations
spk_3: improved big development the proletariat are not a final service model in coverage ratios to salary product development be related id change and eliminated many external vendors and contractors significantly reduce you understand the similar larger technology vendors
spk_4: we continue their actively evaluating restructure a business consultant and operations across the company we will realize additional savings and twenty twenty three reach me to ongoing consternation it's as a result these improvements are driving strong conversion wrinkle metal grabbing to adjust to be the dog his surgically and twenty twenty three at the guidance good point we read in approximately twenty five million dollars you are
spk_2: yeah we didn't for the just gross margin this will drive approximately twenty million dollars a gallon gross profit
spk_4: during this time in were only three to four million dollars a marginal our backs inclusive acquisitions basically words two year on year he retired prove that of seventeen billion dollars we're we're shooting this by realized and sixty seven million dollars a new friends with actions from the efficient pier just highlighted the antoine twenty three will continue to dry strong he the dog conversion is we maintain hide adjusted gross margins and leverage the relatively strict operational foundation the imagine will actually considered an amateur has been will continue to be a better blog of fiscal next one to unload strategy we have been selected to ensure we found the right targets delayed valuation been focusing on i could surely the unique will address your customers most pressing the and would drive predictable and sustainable cab driver growth in according to it either job we've all been the source for strong structure in that all acquisition the gonna call back facing will continue to you to minimize the racial and shareholders will be successful this approach approaching the paris and the able robots pipeline of actual apple trim still was like the outage that today them in a about
spk_2: or you can see the military quote agreement we recently bought a lenders remain flexible and continue to be supported of the captain focused to tear jerker acquisition global climate like to kind of a trash can visually pleasing incredibly a i mentioned previously to financially struggling to sixty one point you know about it
spk_4: cash and the belgian great cash found fully support your and great and pick out your just didn't get worked with were related issue and free cash flow to counter you're growing up already model is that your address bags to treat thirty million dollars a year from there are without additional i could infusions preschoolers for job and lives and for one has no plans to raise additional equity capital just got operates on the bottom got budget in a multiplayer car door strategy we tried to form of respond to variances in an interrupted buggy forecast the make sure we're truck can meet financial their expectations
spk_2: as discussed you take your actions reduce all operating expenses and will continue to optimize our operations across the board we're prepared to take additional action with made it in the future in addition were working aggressively to show little three casual and will comment further on subsequent girl in closing the delivery on top
spk_4: one grown as we execute a strategy to build a counter undergrowth profitable business the provides mission critical solutions to the world's most important decision makers there circular train for dollar business and create unsustainable demand from increase your regulation to geopolitical complexity to macro economic uncertainty only to school older brother a i gave a human intelligence to help customers navigators increasing operation of reflection a man who have knowledge strong to where you only groans we're data work for the new adjacent solutions we highly predictable calling revenue strong was margins and ongoing cross management appeared to profitability is cleared accelerating and we're be operational structure job at a we need to scale this business and dried long term generate we look forward to working with you or shareholders as we continue to build that enjoy the market leader for the future without open up to the operator for questions
spk_0: thank you as a reminder to ask a question please press star followed by the number one on your telephone keypad to a your question please press or one again or portrait just a moment to compile the cure a roster our first question comes from might benfleet from pt id please go ahead you are not open
spk_4: yeah morning picture taken my question i guess first item you mention that europe could be as large potentially of us market price ten percent of the country today is coming from that region will be walk through kind of what what to refund hiring plan to ban to expand in that market one other digital investments are you expecting over the next couple years and then ultimately kind of what what kind of revenue growth or other growth metrics you can share i'm are you expecting and both twenty three and and maybe twenty four
spk_5: from europe specifically thank you
spk_3: yeah that he'd appreciate question ah i think the first thing that we have been in the european market for a couple of years now ah me started off in the brussels market but i really looking at european commission information european data information or in addition to our information coming from different member states naturally just reflection of the continued expansion of the data are an opportunity to be see a overall market additionally over the course last couple of years we have made a number of acquisition in the european market that have expand the scope of our footprint as well the customer pay for we have in the marketplace sell i'll point you to copy company like oxford politika a dragonfly most recent acquisition rpg global and others and that had expanded a footprint throughout the united kingdom as well as a western and eastern europe and those acquisition by themselves actually constitutes a beginning foundation to the we will wifi at a larger european opportunity ah and phil couple different things the first thing in are just the continued application of our technology in the european market in a block you add more data for customers the second thing it's just that's the reality there's a large number multinational company for european governments are the we continue to be able to sit of bring into our overall customer roster i were not really good thing guidance right now particular to european market but it is very big focus of ours as your team i did something that will continue to keep an eye on here
spk_4: okay little about and then when you look at the recent a partnership announcement with open a i am and or expanded on a little bit i'm on the colbert curious in terms of how how you're thinking about that being sort of a product or monetizing that partnership is it something that you know eventually you'll you'll turn into or or build out specific use cases or or products around or use really geared towards enhancing the current platform and just sort of pushing ahead on on your competitive advantage there in which you know you can either cross our would have been more bad or raise prices over time to include that functionality
spk_3: yeah so i think the first thing about the partnership that we have with open ai is just really that's a reflection of the decade log investment that we've made in artificial intelligence and data collection be making in the legal regulatory space as you mentioned in a press release we are the only legal regulatory partner after open a i partnered crunch yeah tpp plugin up program your brawl felt ah there's a couple of different areas that we're really looking out for the first is enhancements the customer experiences so we are in a situation right now as the technology industry where interactions with computers are fundamentally changing what we're seeing the opportunity to enhance customers dance with experiences like rapidly on n b inclusion of the new technologies it's just another reflection of the continuing ability to innovate for the future and actually bring in some he still believes right we talked a couple of a cop about a couple of the think a earlier in the call things like personalization better search relevant be a better or efficient the in terms of data collection on those are all areas where customers are going to see improvements as a result of ah you know the data collection efforts that we have a lot broader partnerships we have included a lot of open a i am i think the lot yeah i do want to touch on it on the like i briefly touched on him my my early remarks which is that we do expect to see
spk_2: some efficiency it's from automation as well and to with common form of things like i'm factor your type the market are reduced aren't expensive that our product cycle innovation and those think all have direct impact on our income statement and of course i'm the combination of better customer experience experiences and more efficient are the operation
spk_3: are we do expect to see you know a real impact of what it does it's overall here
spk_5: great and then about your screws one last one and around the yes be gets issues going on there is any impact that you're seeing and the i'm in a pipeline directly from bad or valuation serve retail i guess resetting lower or not some of the fallout
spk_4: there any update on the i'm in a pipeline around sort of recent events would be very helpful thank you
spk_3: yeah i don't think that the stp situation has had a as material impact on emanate but i will comment that from a macro economic perspective we are seeing a large number of deals come across or in boxes and so as we evaluate those deals we have been a materials shift in terms of expectation front of folks ah as well as the expectations are structure price or whatever the case may be we are constantly diving deals every single week and we are trying to make good decisions around to take the market you want to be in touch the product you want to be an ah but of course the way to restructure structure those deal to minimize to wish for shareholders i'm an ultimately your tried to most equity life for the business sell on a short no impact met vp by obviously there are broader macro economic impact year
spk_5: great thank you
spk_0: our next question comes from like lot more from northland capital markets to go ahead your line it up and
spk_3: thank you again threaten the of the strong finish the the are there i guess just gonna last comment there so he said it saw material shifted expectations the basically the is the point there that just valuation expectations have been coming down a to hear that the the point
spk_4: i might it's strong labor
spk_2: we have seen expectations
spk_4: and it's rationalizing em down the turtle headline value but also the willingness to work around structure inclusive what what structured consideration and on else i think it's fair to say that damn yeah it takes a transactions that we did watch it at or action would lower lip multiple been paid the previous years
spk_6: i'm gonna gotten
spk_3: great city and are over one hundred percent i guess it did you read added sustainable or to that encourages here and maybe touch on one or two points are really had a movie a hundred percent during your
spk_4: sure we danced that just resnick our president chief operating officer in enlarge joins your on the common knowledge that on on that
spk_3: hey mike yeah can address that on and are so you can expect it he and our continue to remain relatively consistent shit fluctuate yell quarter to quarter but i remain relatively can defend were very focused on hitting a tricky lovers and drive it gross attention and about crop though and yeah with lot of the changes that we've been big not the rabbit so particular with been thing a lot about how we structure our account management customer except that function the to help drive that on of attention but particular and with our new cheaper of napster and place have been adjusting are going to market for it okay to help dracula that go well
spk_7: right
spk_3: and then just on the marauder demand environment he's a little bit about what you've seen in the fourth quarter first quarter surrounded a third quarter in terms of just hit you know the size of cell cycle maybe distinguish a moment between government and commercial sectors sure tell me a we talked back in que three about you think some positive he owned a little bit of hesitancy in a private sector and we cannot continue in the queue for mainly and new logo in enterprise we're still think some budget hesitancy which is factored into our guidance for the year
spk_4: yeah we believe our solutions are critical which is which still driving that the mid teens organic growth that were forecasting your were helping enterprises with existential issues that they have or unrest and opportunity he could be the cyber security our data privacy regulations ya expansion and contraction applied the that there were still thing
spk_3: tremendous amount of value and or thing or a cb grow so we feel like a lot of help their although still from the macro environment still driving a bit of that
spk_5: budget held nancy especially on the enterprise that though are continuing the about the growth in private public sector although public tend to be that that kind of steadier more reliable back down and we expect
spk_4: to drive more gross through private sector gone or
spk_2: an event in terms of that have private sector dynamic be any changed since the third quarter a day he knows the environment similar to my son that regard
spk_4: i think the environment still generally similar ios still trying to work through your a lot of malaysia and the macro environment that you see and you're hoping to see some improvement of here goes along that a neocon we factor that in your garden for the air
spk_3: print and a last on the the few acquisitions he made over the past year can you talk about you know it have you seen improved growth rates or good crocodiles sorry this one bit more the traction from the the most recent acquisitions
spk_4: jamaica
spk_3: we seem really impressive acceleration without the acquisitions when we filed the
spk_4: then came later the be some breakouts indeed of bear i'll share with you that your legacy business grew at that rate
spk_3: legal eleven percent year over year while the acquisition cohorts from twenty one hundred twenty to work in the twenty putting twenty one percent or growth for those groups twenty three percent
spk_4: twenty three percent really the acquisition group and that represents putting one platform giving them access to a customer base in damn will that in our business me to do their work too
spk_8: revenue growth
spk_3: and target and flat
spk_0: an next question comes from really kissinger found the a day the country's got had to ended up and
spk_3: a takes take my questions and i'm john said i think he said a year from now you got thirty billion plus in cash and so i guess you're your back to be saying thirty million or less of gas burner the next twelve months is that inclusive of your expectations of future acquisitions over the next twelve months where's that yeah just based on the core business as is today with no acquisitions bacon
spk_9: sure that
spk_4: excluded any i was with my do between now and it suits the operating model that we've killed full businesses and stands today and taken into consideration yeah growth operating expense it's with bags and either now the of the business because well and just as a when clarification bad image via your years now and forty two year from today is well
spk_10: okay so basically
spk_3: and of to one not a ended you one twenty four that cute for twenty three okay
spk_11: i'm a pretty then what what is the what's the go forward interest expense
spk_3: i a regular swiss late but you wanted for the for your both six point roughly six point one million in cute boy made another actors and keep what brought us more that what and and rates unchanged is what's the go for it it's expense expense which one wanted calendar twenty three
spk_4: and again references to me add a movie called be cash interest expenses will have to five million dollars in light of recent change you might use the higher ireland
spk_3: ah ok to get you might have broke up again get and admit maybe just one last for me i'm into for know will get it from the and get but how much revenue came from dt global and a sewing you were and then when you're lucky your revenue guide for twenty three how much revenue yep baked in there from dragonfly at dt global and a so
spk_12: though
spk_4: the hundred k and que for for those two two entities when we think about the are you going old movie your guidance okay and we gave a kind of weapon mm the gate in the ten get them via previous finally gave a range of dragon plotters revenue which was six hundred million pair was that seven million dollars so you can bet that out of the guidance range as well though when you do that a big you wind up with a organic growth rate a dragonfly of try memory and thirteen seventeen percent
spk_3: okay i got a tip me thank you really do some work to back out a soul in data on the typically it's bad
spk_4: that's you and follow up on
spk_8: for dj in the union it
spk_13: yet it in so
spk_14: yeah okay
spk_11: good that it takes to take my questions
spk_0: as a reminder i feel like to ask a question please press star followed by the number one on your telephone keypad our next question comes from like albany from yeah
spk_1: please go ahead you're an adult and
spk_3: yeah buddy thanks for reading and my question hair congrats on the night you for and and and it's not finish that a year i can't one ah clarify a question about i'm only twenty three garden i think i imagine i definitely had a moot point ended up twenty five mil revenue a bigger san mart and fell below twenty know like a male gross margin and and that in a grammatical read a for an hour our backs i'm kind of on top of the you know it your current i get caught papers plot something that you talked about you just kind of walk me through that one of them
spk_4: right so the increase in becky primarily related to the addition a dragonfly which came revenue and and obviously from expensive well read the end of the day is in limbo do project will take fifty seven million dollars about ratings got targeted at the business in you
spk_3: that number translates to probably to twelve million dollars on four your basis and those are an adjustments that were working with josh you didn't seem to make we have made and will continue to make a record year
spk_0: got it okay great thank you at the for me
spk_3: we have no further questions i'd like to turn a call back off or take him honk for closing remarks
spk_0: britain might want to thank everybody for joining up when the call year we obviously had a great billiards wait wait you are given daddy thought it a positive and and really petty twenty twenty three year and don't really like what you are an excellent appreciate what he jumped by jumping on the collier thank you very much

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