UiPath, Inc.

Q2 2025 Earnings Conference Call

9/5/2024

speaker
Operator
Hello, and welcome to the UiPath's second quarter 2025 earnings conference call and webcast. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. You may be placed into question queue at any time by pressing star one on your telephone keypad, and we ask that you please limit yourselves to one question, one follow-up, then return to the queue. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Elise Ferlani, Investor Relations. Please go ahead.
speaker
Elise Ferlani
Good afternoon, and thank you for joining us today to review UiPath's second quarter fiscal 2025 financial results, which we announced in our earnings press release issued after the market closed today. On the call with me are Daniel Dines, UiPath's Chief Executive Officer, and Ashim Gupta, Chief Financial Officer, to deliver our prepared comments and answer questions. Our earnings press release and financial supplemental materials are posted on the UiPath investor relations website, ir.uipath.com. These materials include gap to non-gap reconciliations, which we'll be discussing on today's call. This afternoon's call includes forward-looking statements about our ability to drive growth and operational efficiency and grow our platform, as well as financial guidance for the third quarter and full fiscal year 2025. Actual results may differ materially from those expressed in the forward-looking statements due to many factors, and therefore, investors should not place undue reliance on these statements. For a discussion of the material risks and uncertainties that could affect our actual results, please refer to our annual report on Form 10-K for the year ended January 31, 2024, and our subsequent reports filed with the SEC, including our quarterly report on Form 10-Q for the period ended July 31st, 2024 to be filed with the SEC. Forward-looking statements made on this call reflect our views as of today, and we undertake no obligation to update them. I would like to highlight that this webcast is being accompanied by slides, which this quarter includes an embedded AI demonstration video. We encourage everyone to join our webcast in order to view the demo. We will post the slides and a copy of our prepared comments to our investor relations website immediately following the conclusion of this call. In addition, please note that all comparisons are year-over-year unless otherwise indicated. Now I'd like to hand the call over to Daniel.
speaker
Daniel Dines
Thank you, Alice. Good afternoon, everyone. Thanks for joining us. I want to take a moment to thank our team for their improved execution and everything they do to make UiPath successful. We are pleased with our second quarter results, which exceeded the high end of our guidance across all key financial metrics, a testament to our improved execution and the compelling value that our AI-powered automation platform delivers to our customers. We ended the quarter with ARR of $1,551,000,000,000, an increase of 19% driven by net new ARR of $43,000,000. Second quarter revenue was $316 million, and we deliver non-gap adjusted free cash flow of $49 million. I'm excited and energized about my first quarterback in the CEO role. I spent much of my time during the last few months traveling to visit customers, partners, prospects, and employees. Customers globally continue to ask for our help leveraging the power of AI and automation to transform their businesses, and it's becoming more clear to customers that AI is about automation. To quote the CIO of one of our largest customers, we went through a series of workshops internally to develop our AI strategy, and the outcome was more automation. Building an AI-powered automation strategy isn't just about technology. It's about aligning our capabilities with core business challenges to enhance customer experiences and optimize operational efficiency. And we continue to strengthen our position as the platform of choice for capturing the opportunities that AI brings to an enterprise. On our first quarter earnings call, We discussed our commitment to improving execution and streamlining the organization, driving a deeper strategy around our growth products, continuing to enhance our relationships with meaningful partners, and becoming a more customer-centric organization. I am encouraged with the progress we are making, and I would like to take a few minutes to talk to each of these initiatives in more detail. First, as I have gone deeper into the operational side of the business, I am committed to continuing to sharpen our focus on operational rigor while learning into areas where the return on investment is the strongest. As the leader in enterprise automation, we have and we will continue to invest in innovation to support our growth initiatives and best serve our customers. With that in mind, Our go-forward priority will be balancing these investments while expanding non-GAAP operating margins and delivering sustainable non-GAAP adjusted free cash flow. During the quarter, we made the difficult decision to reduce our workforce, streamlining the organization and driving further operational efficiencies. while better prioritizing our go-to-market investments and continued focus on innovation. With these strategic actions, we now expect non-GAAP operating income of $170 million for full fiscal 2025. Second, we are focused on driving a deeper strategy around our growth product. And we've begun the process of identifying and prioritizing high potential solutions and use cases and ensuring all of our teams from sales to partners to services and products are focused on a common set of priorities that have larger scalable impacts for our customers. While these changes are in the early stages and will take time to build, These enhancements are already having a positive impact, and I'm particularly excited about the successes we've seen with our IDP solutions. For example, a Central American financial institution began their automation journey by automating back office processes across treasury, management, payments, and customer service. enabling them to reduce their banking transaction clarifications from eight days to one and migrate over 50% of their physical banking transactions to their online channel. After seeing the substantial benefits from our automation capabilities, they implemented document understanding to digitally onboard over 500,000 clients per year. and are now piloting IDP for unstructured documents by leveraging our generative classification, extraction, and validation capabilities. Additionally, they will be implementing communication mining in Salesforce to better understand customer issues and reduce clarifications. Our test suite capabilities are also resonating, enabling customers to accelerate time to value while maintaining the stability and reliability of processes and applications in production. During the quarter, we closed our largest test suite deal ever with one of the world's largest technology companies. With the help of UiPath team, they will be implementing our solution to automate testing for their CPQ process in Salesforce and several other processes including ordering, billing allocation, incentive compensation, and forecasting, with an expected cost saving of approximately $23 million a year. Third, partners are a cornerstone of our go-to-market strategy, enabling us to scale our market reach and elevating our customer success initiatives. And I'm excited about our continued growth progress with SAP, including an expansion deal with an Australian multinational corporation and customers since 2021, who originally used UiPath test suite to support their SAP S4 HANA migration. After successfully completing their migration, they expanded in the quarter and are working with UiPath team to establish an automation program globally, encompassing core automation, testing, and AI. Our SAP partnership is also helping us secure new logos, like Gold Peak Technology Group, who will be automating their order input processes to extract and input data into SAP, eliminating manual inputs and avoiding human errors. During the quarter, we also expanded our relationship with Deloitte. integrating our capabilities into Deloitte's Ascend platform to transform SAP project delivery and help companies accelerate and refine the execution of business transformation. For this program, automations are available across various project phases and SAP functional areas, facilitating an effective and efficient deployment process. fostering an automation-first project delivery, and driving faster value for Deloitte's global customers. And finally, our success is deeply rooted in our ability to serve our customers, making a customer-centric mindset more crucial than ever. We understand the importance of successful implementation, and the entire company is focused on ensuring our customers achieve it. This includes taking steps to improve alignment and communication between our teams and our customers through deeper account-level reviews, ensuring the appropriate connections happen across all customer stakeholders. Turning to product highlights from the quarter, in our July release, we launched a series of product innovations that deeply infused GenAI into our automation platform. This included new specialized LLMs for IDP, GenAI activities, and the launch of Autopilot for developers and testers. Since launching Autopilot, we've seen great early adoption of positive feedback from customers. A great example is a multinational digital communications company, an early adopter of Autopilot for testers. The company's generative AI testing roadmap centers on leveraging our LLM capabilities throughout the entire testing lifecycle, from creating user stories to generating test cases and to reporting. With the power of Autopilot, they believe they will be able to consolidate the tools used in their testing framework and reduce manual testing by up to 50%. And we are excited for the next phase of Autopilot, Autopilot for Everyone, which we expect to launch into general availability this fall. Over the past few months, We've been working closely with a few customers in private preview, and we consistently hear that Autopilot for Everyone is not only giving better responses than other LLM-based chat solutions, but is also more valuable because it provides the ability to immediately automate an action. To give you an idea of how Autopilot for Everyone is different from other Gen-AI chat solutions, We'd like to share a quick demo of a real Autopilot use case that we have been working to develop with the US-based biotech company. If you are not on the webcast, please go to our investor relations website for the demo link.
speaker
Gen - AI
Let's take a look at how Autopilot can assist me in onboarding blood donors. Typically, I'd have to review each donor's medical history, research eligibility, check medications taken, and then onboard them using a medical management system. This process can be time consuming and involves a lot of repetitive work. Autopilot uses a combination of generative AI and context grounding to answer medical questions, analyze documents, and can run automations to complete tasks. With Autopilot, I have library of prompts that make it easy for me to get started. I can simply select the pre-existing prompt and type in a medical condition that I want to check eligibility for. Using context grounding and generative AI to respond back to my question, Autopilot provides citations and guides me to next steps. In this case, I'm informed that the donor can donate blood with a summary of conditions that I can verify directly with them. Also, I can view the citation to the medical document used for the recommendation. This helps me build confidence that the responses are grounded in medical facts and can also be used as a reference. Next, I'm going to ask a follow-up question about a medication the donor had taken a couple of months ago. Autopilot leverages both the context from chat session and also cross-references medical documents before responding. It looks like the recommendation is to wait a month after taking this medication, something I can verify using the document referenced. The final step is to onboard the donor in the medical management system. I can simply drag and drop a copy of their driver's license and Autopilot takes care of the rest. Autopilot uses UAPath document understanding models to extract information about the donor and kicks off an automation to fill out the required onboarding form. UiPath's UI automation types in all the required fields and even submits the form. Additionally, Autopilot's learning system knows that the next step is to upload case notes from the session. This is important in case there are future follow-ups required. In a matter of minutes, I have successfully onboarded a Plasma donor. Even in cases where you don't have pre-existing automations available to complete tasks, Autopilot can boost productivity. For example, I have just received a medical intake from a patient with a medication list. Typically, I'd need to enter all these details in manually one by one. With Autopilot, all I need to do is drag the intake form and ask to extract the medications table using UiPath's document understanding model. I then simply select the option to automatically fill in the form by clicking the paste button next to the table. Autopilot does the rest by semantically matching the fields in the form and filling it out for me automatically. UiPath Autopilot helps everyone from interns to CEOs supercharge their productivity, harnessing powerful intelligent document processing capabilities and the latest in gen AI in conjunction with context grounding to automate time consuming repetitive tasks.
speaker
Daniel Dines
What differentiates us in the market is our end-to-end automation platform and the demo you just saw is a great example of an experience that only our platform is able to deliver in a unified experience. To be more specific, we are the only platform that can bring together business documents and data, execute UI and API based automations across systems, and utilize a mix of specialized AI and generative AI grounded in organizational data and process information. These capabilities enable users to take real action on enterprise-grade platform that is secure and governed. There are few things I find more satisfying than seeing customers leverage our automation platform to flourish and succeed. Their stories are inspiring. For example, Health Service Executive, a customer since 2020. With automations across their HR, finance, and community care departments, they have processed over 6 million transactions, saving over 700,000 hours and 28 million euros to date. Driven by the quick time to value and tangible ROI, they were able to achieve HSE expanded in the quarter to urgently extend these automated solutions across their hospital wait lists. Partnering with Deloitte, they are in the process of accelerating the deployment of this solution to an additional 20 hospitals before the end of 2024. These stories, along with the conversations I had with customers, partners, and our product team all directly influence how I think about the strategic direction of our business, and I have never been more enthusiastic about where we stand from a product perspective. As a market leader, it's critical that we continue to innovate to further differentiate our products, and I am excited by the next evolution of our platform, UiPath Process Orchestration. which we launch into private preview in June. While legacy business process management vendors typically start with a top-down approach that is often disconnected from how work really gets done, our approach differentiates by allowing organizations to build a unified data-driven bottom-up view. This enables customers to discover, automate, optimize, and monitor business processes from start to finish, providing complete visibility into how work is executed by people, automations, and in systems. We believe that process orchestration is the key ingredient for the future of agentic process automation. We are really excited about the progress we are making on this vision and our overall product roadmap. and we invite you to join us in person to hear more about these product innovations at our user conference Forward in Las Vegas next month. We hope to see many of you there. Finally, I wanted to take a moment to thank Ashim. Since joining UiPath in 2018, he has played an instrumental role in transforming our company. with his extensive financial and operational capabilities. Over the last several months, he has also been a driving force behind our efforts to refocus the company on its core strengths, improve our operational rigor, and re-establish a customer-centric foundation to support our growth initiatives. While Hashim will continue to oversee his traditional CFO responsibilities, I am pleased to share that he will now take on an expanded role as Chief Operating Officer, where he will work with me to maximize financial and operating efficiencies across the organization. With that, I'll turn the call over to Ashim.
speaker
Ashim
Thank you, Daniel, and good afternoon, everyone. Unless otherwise indicated, I will be discussing results on a non-GAAP basis, and all growth rates are year-over-year. Turning to the second quarter, ARR totaled $1.551 billion, an increase of 19%, driven by net new ARR of $43 million. Our cloud-first approach is driving adoption across our customer base, and we ended the quarter with more than $850 million in cloud ARR, which includes both hybrid and SaaS, an increase of more than 65%. A great example is Ontario Power Generation, a customer since 2018, who expanded in the quarter as they begin to migrate to the cloud. They are also planning to expand to additional departments across the organization while incorporating document understanding and communications mining into their program. We ended the quarter with approximately 10,810 customers, including new logos like Ixum, Benefis, Moss & Associates, and Piedmont Healthcare. Moving on to customer metrics. Customers with $100,000 or more in ARR increased to 2,163, while customers with $1 million or more in ARR increased to 293. Dollar-based gross retention of 97% continues to be best in class, and our dollar-based net retention rate for the quarter was 115%. Expansions are driven by the quick time to value and the broad applicability of our automation platform. A great example is AGS Health, a customer since 2021 that currently uses UiPath to automate their claims tracking, eligibility verification, and payment posting processes. In a competitive win, they expanded their usage of document understanding, highlighting our unique AI capabilities, such as our AI trust layer and human-in-the-loop model training as competitive advantages, scaling from 6 million documents to over 20 million documents processed. and saw a 95% accuracy improvement. With support from their CFO and CTO, they will be adopting document understanding across their payer and provider departments for medical record patient indexing. Turning back to our results, revenue grew to $316 million, an increase of 10% year over year. Remaining performance obligations increased to $1.081 billion, up 19% year over year. Current RPO increased to $686 million. Turning to expenses, we delivered a second quarter overall gross margin of 83%, driven by continued adoption of our cloud products, and software gross margin was 87%. For the full fiscal year 2025, we continue to expect gross margin to be approximately 85%. Second quarter operating expenses were $257 million. Gap operating loss of $103 million included $94 million of stock-based compensation expense. Non-gap operating income was $6 million, resulting in a second quarter non-gap operating margin of 2%. Second quarter non-gap adjusted free cash flow was $49 million. As of July 31st, we had $1.7 billion in cash, cash equivalents, and marketable securities and no debt. Our strong balance sheet combined with our free cash flow generation has enabled us to return capital to our shareholders in a meaningful way through our share repurchase program. During the quarter, we repurchased 16.3 million shares of our Class A common stock at an average price of $12.05 from May 1st, 2024 through July 31st, 2024. Since July 31st, under a 10b-5-1 plan, we repurchased an additional 10.7 million shares at an average price of $11.67 through August 30th, 2024. And as you may have seen in today's earnings press release, our board of directors has approved a $500 million expansion of our share repurchase program, underscoring our confidence in the business, our conviction in the long-term opportunities ahead, and our commitment to delivering shareholder value. Moving on to guidance. We are pleased with the progress and improved execution that we delivered in the quarter. At the same time, we are taking a prudent approach to guidance, which assumes the global macroeconomic environment continues to be variable. As Daniel mentioned, during the quarter, we took a number of actions to drive operational efficiencies and streamline the business. And as a result, we are raising our non-GAAP operating income and non-GAAP adjusted free cash flow guidance for the full year 2025. For the third quarter fiscal 2025, we expect revenue in the range of $345 million to $350 million. ARR in the range of $1.6 billion to $1.605 billion. Non-GAAP operating income of approximately $27 million. And we expect third quarter basic share count to be approximately 552 million shares. For the fiscal full year 2025, we expect revenue in the range of $1.420 billion to $1.425 billion. ARR in the range of $1.665 billion to $1.670 billion. Non-GAAP operating income of approximately $170 million. And finally, we now expect fiscal year 2025 non-GAAP adjusted free cash flow of approximately $325 million. Thank you for joining us today, and we look forward to speaking with many of you during the quarter. With that, I will now turn the call over to the operator. Operator, please poll for questions.
speaker
Operator
Thank you. We'll now be conducting a question and answer session. If you'd like to be placed in the question queue, please press star 1 on your telephone keypad. As a reminder, we ask you please ask one question and one follow-up, then return to the queue. If you'd like to move your question from the queue, please press star two. Once again, that's star one to be placed in the question queue. One moment, please, while we poll for questions. Our first question today is coming from Raymond Lenshow from Barclays. Your line is now live.
speaker
Raymond Lenshow
Hey, perfect. Thank you, and congrats on a good quarter. My first question was, like, if you think about the changes that you wanted to make in terms of selling more on a departmental level, going back a little bit to your roots, Daniel, you talked about it last quarter. What progress have you seen there? What are you seeing in the numbers? Is that showing in the numbers already? Is that showing up in pipelines? Talk us through a little bit about the progress you're seeing there.
speaker
Daniel Dines
I want to be very specific that we want to address both C-level suite type of selling with departmental level. It's still early to comment about the progress, but we've made quite a few organizational changes. We have appointed a new leader in North America that I think he was with the company previously. He can definitely understand our land and expand business while is very versed into talking to executives We we've done quite a few changes on You know at the central organization and level we regionalize some of our functions and we we make clear the entire company that we Customer centricity is going to be the core principle to our business.
speaker
Raymond Lenshow
Yeah. Okay. Okay. Perfect. Thank you. And then, Ashim, like, how do we, like, congrats on the expanded role. Like, it's a lot of other organizations, you know, I mean, there's so much to do. You're growing at the high scale. at the healthy clip. Do you think that that's kind of a permanent thing for you, or should we think about this more as a temporary solution? Thank you.
speaker
Ashim
Look, I think Daniel looks at it as giving me long-term goals for the company. We don't treat, you know, but anything could change RIMO from that perspective, as Daniel always will evaluate the organization. My mandate and my goals that Daniel has given is really make sure that our enabling functions Really become in service of the customer and over the field. And to drive connectivity across our organization, which we talked about is something that we needed to improve on. And as well as continue to drive the operational efficiency and streamline the organization, you know, and continue to drive and streamline organizational processes, et cetera. I'm excited about the opportunity, you know, just to continue to work with broader sets of teams. And we look at this as an entire leadership team that, you know, is really focused on the goals that have been laid out on, and that's really what we're focused on today.
speaker
Raymond Lenshow
Okay, perfect. Thank you.
speaker
Operator
Thank you. Next question is coming from Mark Murphy from J.P. Morgan. Your line is now live.
speaker
Mark Murphy
Thank you. Nice to see the stability in the operating results this quarter. Daniel, we've been noticing the term agentic is suddenly becoming very popular. Salesforce came out. with its agent force branding recently. And part of the notion is that agents are going to have independence and autonomy. And I'm wondering how you might think about the line of demarcation. If we think of a bot and it's following predefined workflows, It feels like predefined logic. You need humans to set up the models and all that. And then if you think about an agent, it's acting independently. They can adapt, right, maybe sometimes without instructions. How are you thinking about that line of demarcation? Because I think it might be at the root of some of the customer confusion on where RPA might fit into the AI landscape. And then I have a quick follow-up.
speaker
Daniel Dines
Yeah, that's a great question, Mark. We really think of agentic process automation as an evolution of robotic process automation. Actually, we started to socialize the agentic process automation term during our tour event in London, in Paris, at the beginning of the summer. we introduced the concept of robots and agents working together. And to me, an AI agent is basically a robot, if you want, that has some new skills. And I think there will be multiple types of agents. For instance, there will be agents that are capable of... extracting information from long and complex documents. And users, human users, will be capable of interacting with these agents, asking questions, and in turn they can ask the agents to perform actions for them. There will be agents that can make more intelligent decisions based on data, and they can route a process in a more dynamic way. As you know for sure, robotic means that the series, the steps in a process are stitched together in a fixed way. And a genetic workflow might have dynamic routing as part of the process. Well, I want to iterate where is really our strength here. And it is in combining. Actually, robotic automation with agentic automation is part of our process orchestration platform. Because I think the key differentiator in customers deploying agents will be in how well they are integrated within the business platforms and how well we can orchestrate between robots, agents, and humans. And I think we are uniquely positioned to bring the power of LLM-based agents into our platform and offer this level of orchestration.
speaker
Mark Murphy
That's a great explanation. And Ashim, I wanted to ask you, do you see any line of sight to a point in time where some of the AI confusion might dissipate and you know, maybe begin to turn into kind of a full-blown AI tailwind for UiPath. Like, in other words, customers might re-educate and understand and how to move, you know, jointly with AI and automation. Because I guess I'm curious, you know, could we look on this period of softer ARR growth, could we look back on it and maybe say that it was just a bit of a temporary period of confusion before customers kind of figured it out?
speaker
Ashim
Look, I want to be careful about giving any type of long-term guidance implied in that, Mark. At the same time, what I can say is we're investing in the platform and we'll continue to invest in the platform and our AI capabilities because we see it as a meaningful opportunity to drive value and differentiation with customers, which in our minds reflects on the conviction that we have in the company. In the script and in other areas, Daniel's already talked about customer conversations are already becoming clearer for us, right? Like people are seeing the linkages between AI and automation. So we're already seeing positive response and more clarity from our customers. How the AI narrative translates in the broader market, confusion moving in and out because of broader factors and as that area evolves, I think we're all going to, you know, we all take it day by day and quarter by quarter. But long term, we feel very good about what AI is bringing, and we're investing because we do believe it has a meaningful ROI and reinforces the durability of our growth rate.
speaker
Mark Murphy
Thank you very much.
speaker
Operator
Thank you. Next question is coming from Brian Bergen from TD Calendar. Your line is now live.
speaker
Brian Bergen
Hey guys, good afternoon and congrats Ashim on the expanded role. My first question just on demand is macro variability has been a pretty consistent message in how you've described how enterprises are behaving now for several quarters. We understand things deteriorated last quarter, I guess late March and April. Can you just comment on what you saw through the balance of 2Q and into August as well?
speaker
Ashim
I think we saw things pretty stable, Brian. You know, we still describe the macroeconomic environment as variable. We've talked about the commercial end or the lower end of the market, you know, having a higher degree of impact. And we see that to be to remain consistent. And we see that, you know, just really broadly across all geographies, etc. I do think that As our execution improves, you know, and as we've made, as we've streamlined different areas, I think we're adopting well to the environment. But I do feel like, you know, the environment is stable versus last quarter. And we didn't really see any ups and downs month to month within the quarter.
speaker
Brian Bergen
Okay. And as it relates to the restructuring and how we should think about potential yield from that, can you comment on whether the restructuring actions you're taking, does that impact? that 20% long-term adjusted operating margin target add? Does it provide upside there, or is it more of a means to achieving that?
speaker
Ashim
Look, I think that we're going to update our long-term guidance at the appropriate time. What we do feel in our restructuring efforts that we've taken and that we're going to continue to look at different ways to streamline the organization, we do feel like there's more efficiency to be had. There, Brian, and then we'll update that on our long-term margins as we go. We have always said that we're going to be 20% plus in terms of our long-term margin. So what that plus looks like, that's what we'll update at the appropriate time.
speaker
Brian
Okay, understood. Thank you. Thank you. Next question is coming from Matthew Hedberg from RBC Capital Markets.
speaker
Operator
Your line is now live.
speaker
spk07
Hey, guys. This is Mike Richards on for Matt. Thanks for taking the question. Maybe going off that last question there, I was wondering if you could provide some more details on the restructuring, just in terms of, like, sizing and what areas were impacted, and then also, you know, if you're accounting for any disruption between the restructuring or the general organization changes in guidance. Thanks, guys.
speaker
Daniel Dines
Yeah, maybe let me start with a high-level overview, and then I let Ashim to bring more color. I think largely we have restructured our central functions, and we were looking at more like sales operation, sales enablement functions, especially Also, part of restructuring, I can tell you, basically we look in all areas of the company. And I think our goal, it's longer term that this restructuring into bringing a great level of efficiency and agility into the company.
speaker
Ashim
And then just in terms of disruption, Um, you know, we provided our guidance in, uh, in the last, in the last quarter earnings. I think there's no incremental impact to that, that I would say from a disruption standpoint, um, we would account for at this time. Again, as Daniel said, when it's a lot of the streamline, a lot of the central organizations, they didn't really impact the growth of the company, right. And the growth rate of the company, they really were, you know, there was a larger disconnect between those organizations and the field. So that's one of the reasons why we did not see that disruption or why we don't feel like there is a meaningful disruption that needs to be singled out.
speaker
Brian
Thanks, guys. Thank you. Next question is coming from Keith Weiss from Morgan Stanley.
speaker
Operator
Your line is now live.
speaker
Daniel
Yeah, this is Sanjay Singh for Keith Weiss. Thank you for taking the question. Daniel, you've made up a number of initiatives across operations, products, partners, customer success. I was wondering, as you sort of look at sort of the near to midterm, where do you see the lowest hanging fruit in terms of getting back to a better growth trajectory?
speaker
Brian
And then I have a follow-up.