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spk_0: the day if they can be spending by welcome to the smart the second quarter go twenty twenty two earning conference call at the time all participants only listen only moda at the to speak of presentation there will be question in a position to ask a question during the session unique approach though one or your telephone if i said at a conference is they recorded if you require further says that the please for the zero hour now like a hammer covered over to your speak of the day and kerner head of events the relation like you please go hit the
spk_1: big debit a good afternoon and welcome everyone does merchant second quarter of fiscal year twenty twenty two earnings call we'll be discussing the results and out in our press release issued after the market closed today with me today are smart she'd ceo mark mater and see about be gobble our chief strategy and product of a surgeon barrel walther be available during the and a direct cause being webcast and walter be available for replay on our investor relations website and investors that's margie dot com there's a slide presentation that accompanies pizza prepared remarks which can be viewed in the of then section of our investor relations website during this call we will make or looking statements within the meaning of the federal security laws we have bases forward looking statements largely on our current expectations and projections about future events financial trends and our expectations around the impact of covert ninety nine or business the it's forward looking statements are subject to a number risk and other factors including but not limited to the described in our ftp filing available on our investor relations website and on the website at www dot ftc dot gov although he believed that the expectations reflected in the forward looking statements are reasonable a result actual results may differ materially and adversely all forward looking statements made during this color based on information for available to it as of today we cannot assume any obligation to update these statements as a result of new information or future events except as required by law in addition the us capitals we'll discuss certain non get financial measures a reconciliation to the most directly comparable you as get measures is available on the presentation that accompanies this call which can out be found on our investor relations website without the need for the call over to mark
spk_2: thank you learn and thanks everyone for joining us today for a second quarter earnings call que to was a very strong quarter for smirky or customers and partners revenue grew forty four percent to one hundred and thirty one point seven million dollars buildings grew forty seven percent two hundred and forty two point nine million dollars and dollar based never tension rate which we call bridge all of our customers improved by three points to two hundred and twenty eight percent we ended the quarter with over nine million users and our a or are grew ten percent quarter over quarter to over half a billion dollars or one thousand eight hundred fifty six customers with a cb over fifty thousand dollars now account for more than half of our a or or in queue to our average domain easy be grew forty two percent year over year to five thousand and nine hundred and fifteen dollars and expansion within our base and food at one hundred and forty three customers increasing your error by more than fifty thousand dollars of eighty one percent year over year and forty nine customers a smart she'd quarterly record increasing their error by more than one hundred thousand dollars up one hundred and fifty eight percent year over year additionally we had to expansion over one million dollars in the quarter and now have twenty two customers with a are are over one million dollars compared to fifteen last quarter enterprise customers deployments demonstrates smarties momentum and serving the scaled needs of those customers are industry diversification remains broad were the largest industry accounting for just twelve percent of our a or our growth remain strong across industries including technology with customers such as zoom communications hitachi into it and people and in professional services with companies such as btl inflated global and jacobs technology due to weather a high impact quarter for companies and health care and life sciences with the over your our growth over fifty percent this growth was supported by expansions from companies including all scripts helped your solutions amazon prime healthcare yale newhaven hospital vertex pharmaceuticals comedic your health systems and medtronic in a day some we saw strong performance across retail with expansion from companies such as burlington stores and gabbing media and entertainment with expansions of nbc universal and the new york times and manufacturing with johnson controls and whirlpool our customer acquisition was wrong and you to as well thousands of new customers chose marty this quarter including wins sky news australia momentous days smg new hampshire department of health and human services kestrel core and unified field services what these customers have in common is a shared belief that smart you does ideally suited to meet their broad and ever changing needs at it's core smarty isn't enterprise grade dynamic work management platform designed to empower business users to transform how they work we go to market using a lamb and expand model that often starts with a team or department choosing smarty to solve a transactional use case like project management task tracking your go management the solution than growth through a low friction viral motion when users share their work and engage with both inside and outside of their organization where we excel is our ability to enable customers to extend beyond transactional use cases to support transformative operational workflows across their business in part this is made possible by are flexible data model or advanced premium platform capabilities and workout know code solutions are flexible data model combines the agility of a spreadsheet with the power of a database smart you to advance and able to customers to configure and execute workflows between smarter than other systems of record execute high volume prophecies and change management of scale and empowers i t the centrally managed compliance and security across multiple smartly plans and workouts and powers business users to configure know code out and share these curated solutions while maintaining visibility and control variety in into to with a lot of smart you to advance we saw immediate resonance with prospects and customers signing over one hundred the old that included advance one example of a customer that expanded with mine passed mine cast enterprise piano uses you to support objectives related to growth and digital transformation and with advance will now leveraged margie to optimise programs and proxies outside of that piano including marketing operations channel partner on boarding sales rep on boarding and large customer count planning mine cast considers this investment is a way to remove friction and accelerate the speed of deployment for futures market solutions that leverage premium capabilities in que tous marching advance influence significant expansion of the leading provider of equipment and services for data centers that this customers i t new product development and marketing departments are at the core of this enterprise why deployment with the advanced platforms premium capabilities the customer will drive additional value and and to and cycle time improvements across critical parts of the business marjorie to advance advances also resonating with customers outside the u s one example hit holds a large german container packaging manufacture deploys marjorie to advance to increase productivity by doubling project capacity and to capitalize on growing congress trends by providing visibility across complex ever evolving project needs a key selling point for the customers adoption of advance with the benefit of extending our plan from to capture new use cases and further simplifying the implementation process beyond man's we continue to see customers using our platform at scale data subtle which enables schedule trap theater transport between smart sheet and other systems of record processed over one point seven billion records in the past thirty days growing close to twenty percent month over month proofing was used by customers to collaborate on the creation of digital content three hundred seventy thousand times in the first half of the year represent a year over year growth of over three hundred fifty percent customers have created forty thousand work absence the launch without writing a single line of code and customers leverage brand manage over fifty million digital assets as a cue to a two hundred percent increase your year and content delivery views into to averaged one point four billion per month and we continue to innovate for our customers and launch new capabilities to support our global and non us customers' data privacy compliance requirements we will announce the availability of smarter regions this quarter the first region located in frankfurt germany enabled customers to instantiate smarty plans in region and does not require any cost i'm are content to be shared or routed through our us region in the wake of changing regulations and heightened awareness on the subject our research research indicates that enterprise buyers are increasingly sensitive to fully not partially solving for data residency we look for to announcing the availability of additional she'd regions in the coming quarters our partner ecosystem continues to thrive as well into two we launched integration with hotspot make it even easier for customers to enable by directional real time think of data between hub spot and smart she and we also expand or a partnership with your soft with soft connector for smart sheet customers can manage a variety of business processes raining himself pipelines to been schedules in addition to technology partners or channel partner program is ramping well we now have six hundred and fifty channel partners in a queue to partner influence bookings grew ninety three percent year over year i'm proud of the where are growing team continues to execute across the many dimensions of the business around the world people are choosing smart for simple to sophisticated use case whether mobilizing a team of creators are scaling a data intensive work flow with embedded calculations or reporting on data from disparate internal systems and they that an enterprise scale using a know code interface that every single person can engage with in the near future everyone using a computer at a desk device in the field or a combination thereof will interact with cwm software every day as the category leader pursuing one of the largest available tamsin software and coming up our record you to performance we are confident in our approach and will maintain a forward leaning investment posture to drive results for our customers shareholders and team now let me turn the call over to pee to provide some additional detail on our financials be
spk_3: the thank you mark and good afternoon everyone as mark mentioned q to with another strong quarter or due to outperform and relative tour guide and was the function of strong execution by our sales team significant enterprise expansion a record number of larger deal
spk_4: an early success of our advance offering
spk_3: we have now surpassed be covered levels across most aspects of our business i will now go through our financial results for que to unless otherwise stated all references to our expenses and operating results are on and on got basis and are reconciled to our got result in the only julie's and presentation that was posted before the call as previously mentioned second quarter revenue came in at one hundred and thirty one point seven million dollars of forty four percent year over year the subscription revenue of one hundred and twenty one point one million dollars representing your of your growth of forty five percent our momentum is reflected by the sequential increase in subscription revenue of thirteen point one million dollars the highest quarterly sequential increase in the company's history services revenue was ten point six million dollars representing your rear growth of forty percent
spk_5: donning to buildings
spk_3: second quarter bidding skin and stronger one hundred and forty two point nine million dollars representing year over your growth of forty seven percent approximately ninety one percent of our subscription buildings were annual with six percent monthly quarterly semi annual and most are your billing represented over three percent of the daughter moving on to our reported metric the number of customers if you're are over fifty thousand dollars to sixty four percent year over year to one thousand eight hundred and fifty six and a number of customers with are over one hundred thousand dollars just grew seventy three percent year over year to seven forty read these customers segments now represent fifty percent and thirty six percent respectively of totally are next our domain average a the grew forty two percent year over year to five thousand nine hundred and fifteen dollars we ended the quarter with the dollar be that retention rate of one hundred and twenty eight percent or three percentage point improvement from que one the full churn rate dropped further and is now below six percent as a reminder in qt we will love the brand folder acquisition which will result in a one to two point headwind on our dollar be that redemption read include this headwind we believe we will exit the year with a dollar business attention rate above one hundred and twenty eight percent are turning back to the financial or total gross margin was eighty two percent two percentage points higher than the previous quarter our due to subscription gross margin with eighty seven percent also two percentage points higher than the previous quarter we continue to expect are gross margin for fiscal year twenty two to be between seventy nine and eighty one percent overall operating loss and a quarter with negative five point two million dollars or four percent of revenue and improvement from he'd percent of revenue a year ago this margin improvement with the function of killed across our sales and marketing and orange line inherent in our model
spk_6: free cash flow of negative three point five million dollars which over achieved against or guidance due to strong collection
spk_3: now let me move on to guide for the third quarter of fiscal year twenty two weeks that revenue to be in the range of one hundred and thirty eight two hundred thirty nine million dollars buildings to be in the range of hundred and forty nine hundred and forty nine hundred and fifty million dollars non gaap operating loss to be in the range of fifteen to twelve million dollars and non gaap net loss for sure to be between twelve cents and denson based on weighted average shares outstanding of one hundred and twenty six million arnett free cash flow is expected to be in the range of negative seventeen to negative fifty million dollars given our strong que to result and continued momentum be seen our business we are reviewing our full year fiscal year twenty two revenue and buildings guidance we now expect our revenue to be in the range of five hundred and thirty to five hundred and thirty three million dollars representing growth of thirty seven percent to thirty eight percent billings to be in the range of six hundred and nineteen to six hundred and twenty two million dollars representing growth of thirty seven percent to thirty eight percent we expect non gaap operating loss to be in the range of fifty five to forty five million dollars and non gaap net loss share to be between forty four seven and thirty six and for the year based on approximately hundred and twenty twenty five million weighted average shares outstanding our free cash flow margin expectation and preschool your twenty two is to be between negative six percent and negative four percent to conclude we were pleased with this quarter and several from among them the residents of are dynamic worked platform offering that is a burnt by our early success with advance are doing the performance which indicates a strong demand environment and a quarter across segments and geography and enterprise traction evidenced by the record number of expansion greater than one hundred thousand dollars and the sequential increase in customers with are of over one million dollars wifi a big opportunity in front of us and are investing behind the signal
spk_0: now let me turn it back to the operator for question operator as a reminder to ask a question you when they to press thought one on your telephone to with you are your question press the pound key he said live why with a particular and a roster
spk_7: as your first question that on the line of brit feel what jeffrey
spk_2: good afternoon up marches and large enterprise of church if you could sell little time drilling and on attraction your see it in also i know feed mention that it's early on advance what what what had been impacted that abbey and then for for pete adequate follow a brick it it's really combination of thing growth on two dimensions the first is on the fifth dimension people and rolling more people on the platform the second is elevating what they're doing with the platinum and i think advance is giving people are really nice composite offering where they can do everything from scaling a certain process implementing better in in poor routines from legacy system visa things that are i'm a fairly different than what i would say sort of transactional work management which may be sir tim task ordination and event planning an adequate advances doing is giving people a much faster way to address the entire suite
spk_7: the entire suite of offerings and for p just a joke for them for said believes down that low thirties on the guide many was quite like like the judge sharp the felt you may just bridge what's with have the future and i know there's one on m in a but for as having some impact me just make me
spk_8: walk through that that beats on empty why for absence maybe not as severe as is that looks
spk_3: two brothers feet culberson point on a quarter but quoted represent different economic reality the call for the first couple compared to aid over them back to be and the second half represent the recovery starting to recover from that be that's what part of it the second part of it is up in the first half of his career twenty one we had no brand folder in the bay now in terms of your specific question about que three
spk_9: if you recall and te of fiscal year twenty one we had a four point seven million dollar one time a quadrant deferred revenue pick up which when you set of put into our guys and the factory tour guide and would make our guidance about a thirty eight to thirty nine percent you're on your globe
spk_0: great thank you
spk_10: and the next question the line of mock murphy what jp morgan oh thank you very much affected him on behalf of mark congrats on or as have one question you have been a few quarters nelson's you launch bridge
spk_11: what has been the uptake of that production for of in terms of feedback are you seeing a lot of customers build can cross functional work for donations such that small choose becoming more deeply embedded into the business process is that part of that price reduction as that jersey
spk_2: yeah benjamin is it you really up to think about it across all of our connectors not just bridge so the combination bridge data shuttle and then our purpose built connectors and those are included in our pants offering
spk_12: and so with that availability of bridge in those other connectors we are seeing significant increase in number workflows and the amount of data be transferred between smart she'd another systems of record and and importantly it's enabling us to connect to both other cloud or south offerings as well as significant number of on from legacy systems in show me the solutions that we see out there today or our customers or polling data from multiple sources into smart sheet to to manage your work for a
spk_2: us so we believe that definitely embeds us into the core workflow the organization
spk_12: really great example that as we have a reading sports where manufacture this actually using data shuttle to pull data in too smart sheep from multiple legacy systems to manage public life cycle management of their sports where offerings and so it helps them manage inventory logistics and actually make better decisions about when to change
spk_10: out and like lot of products understood gets a doubleclick a little bit the two expansions that you talked about over one million i think he said
spk_2: is that if you think about between feet and other offerings cubicle the missed offering how how do you hundred that makes look at one million dollars sequential that more driven by feet or more driven by some of these are the products but we will be notable to to speak to his that of our top ten the authors quarter seven of them contained advance
spk_10: so these are all these are all hybrid deals where your feet consumption as well as capabilities consumption i think that's probably the best market a point to
spk_0: understood thank you
spk_7: the next question is on the line of carry tail man what tourists security eg i just got bats are allowed for terry thanks for i'll take my questions and congrats on on quarter i just want to say to go back and talk about the international when the as quickly so one of things that we were kind of curious about was you mentioned there is that's different use cases are between maybe the us and international market
spk_8: what were those does use cases expand expand their
spk_3: according to speed the you get we wifi internationally are very consistent you know they're of the same kinds of use cases we seem to us
spk_7: nationally as well we saw that demand vector player as strong internationally as it was domestic
spk_3: perfect and then just just one click follow up so as you continue to land some some bigger deals are several take your and and above are there any changes in in many areas for for forecasting in terms of the larger steals and house we think about those that does does going forward thank you
spk_4: so you know i i see we're closing a larger transaction that the trend
spk_13: what you should expect in the back half and of as these transactions girl with start to see a larger wait for que for and you're gonna start to see an enterprise software seasonality play out
spk_0: great thank you
spk_14: and your next question it's on the line of got burke what made him everyone is john to the on prescribe bird preheated my question and and grandson a quarter just curious given that the market is very much don't really take you on nukem number the pandemic are you concerned you keep customers eating more to standardize
spk_2: single solution versus having multiple cwm vendors are you calling there would be helpful if you yeah we still see a huge opportunity which is which we consider greenfield a when we look at where we did a direct competition competitors in category we're talking very low teens like ten percent twelve percent of our opportunities we would consider called contested so the vast majority or not so when we speak of to cut transactional use cases there's there's so so many teams and divisions within businesses that it's quite common in those scenarios where team i choose a different solution where we see less a sort of diversity is when it elevates within an organization in i t his ass to formally approved so that would mean can make sure that we have consistency and policy making sure that it's aligned with the authentication mechanisms all those pieces that's where we are see i t make a decision for one however i would say those numbers of opportunities are still quite a few as people as as the market is forming we were tied new low single did
spk_13: percentage of unavailable tam have been penetrated we do expect that to change over time and one of the reasons we've invested so heavily on enterprise dimension
spk_0: with it you get hear much
spk_7: and the next question it's on the line of jill watch i want what oppenheimer
spk_15: thank you for take my question mark just start following up on both competitive
spk_7: after that you just gave date do you feel very many head to head
spk_2: yeah contested the all right now are the majority of topic in a still green green felt like okay and where are you dislike think what tools are you but he is ever that about roughly ten percent of the deal he would he would hear of another competitor me are not named zora status quo as you move up the ladder and terms with the defecation of what the customer is expecting that number froth precipitously so again if you're looking for basic use cases cash tracking team coordination you're gonna see more players there and as you move up whether time dimension of combining work management with digital asset management right the brand for smarty combo there are options and work for that for you see almost no competition there are a and terms of the companies that are that are being displaced a think of think of certain markets that may be considered legacy like the traditional ppm providers the plan views of the world i think there's a really neat opportunity to take significant share and markets like that and you know teams that a great job getting us right number one of the ppm energy to ranking a recently actually
spk_15: we really need opportunity there toss it takes year
spk_16: okay and then the the new customer generation continues to be a pretty solid you how do you feel about that going forward your how are your partner's contributing they're and the do you expect the incremental leverage now that are cheap region the get
spk_2: be available
spk_12: yeah i think is this gene as we called out on the call we're seeing and a nice uptick in parker contribution to the overall a are growth and i think that we're we're absolutely looking at how we can support customers to land more often and discover what what's possible smart she and then is a they learn what they're capable of graduate move up to a higher level the deployments and capabilities and so you're with we think it's important to both
spk_2: continue to land pretty aggressively had as well as dr expansion motion i think regions will be a nice
spk_12: way for us to reach markets where data residency has been a concern for customers particularly when you look at martin like germany where
spk_0: the regulatory environment makes it really challenging for local companies tv host and manage all their their information in the united states and so we we see the the launch of our first region in frankfurt as a as a an unlocked for us and they'll be more to come
spk_17: thank you
spk_1: pekka next question it's on the line of bachmann would be ammo
spk_7: hi thank you i had to questions if i could
spk_17: the first is a want to try to understand how you're thinking about your longer term
spk_7: profit targets including free cash flow which you previously given how do you think about the path the realizing those targets of called twenty plus percent
spk_3: the margins at a time when both yourself and your compass competitors are growing very fast but none of which are are generating a positive because florida are generating positive operating income at how do you think about the growth of trying to realize those targets or house and investors think about that and then i have a fall i could
spk_18: to keep this is feed you know the guidance we gave him the total revenue was you know between fiscal year twenty three and twenty five we'd get to a billion dollars a full year revenue we expected to be in the back half of the year
spk_19: when we get to that we expect that to be there for twenty five so when we get to that number we believe our model is capable of generating free cash flow and scale so that's kind of statement we made we think it's completely possible and invest in the meantime as we get there so we're thought of taking off advantage of all the opera
spk_7: charities to invest and the huge standards ahead of us okay okay let me choked myself second question though is your average a the per customer is still going for a rapidly forty forty two percent year over year
spk_2: and yet it still represents a relatively small percent of ben for the speak for your average client base what what are the main sources of friction that you feed it to keep growing that number over the next twelve months and what are the main strategies and tactics that you're taken to keep growing that average hcv per customer if if not accelerating yeah we do we've gone ignored north of forty percent for quite a few quarters in a row now i feel like we're feeling a lot of friction man with the events with the advance introduction really making it easier for customer anderson took for customers to understand what's available to them and then give them a very straightforward mechanism for gauging with us i think there's a it's one of his wife you hundred fifty eight percent growth rate on the over hundred thousand dollar deals and the if it's landing with customers right now and we serve tens of thousands of organizations today so or job is to really understood to make sure that our customers understand what they're pathway is and as we think about improving both the entry point into our platform as well as the the presentation of the full suite
spk_20: i think it's a lot on as to how do we really plotted market that extremely well but i think the that the are a while some of these implementations is so high we're not seeing sort of challenge in terms of well when not sure there's value years more pit helping people and howard coexist among their see m investment the yuppie investment and there other integration platforms of
spk_0: they have
spk_21: so but we're very pleased with the progress
spk_7: i thank you
spk_14: and the next question is from the line of our john but with william blair
spk_2: yes thank you and that can read on the result mark me one for you at a lot sadder stand the role that advance is playing in new customer acquisition and and if that's a part of the conversation at all your customers of it tends to be more of an expansion point as customers graduate from that transactional use case a more transformational deployments that you talked about during one of the really need observations from the first quarter was that we had more advanced sales within our commercial quarter curing rap group then we had an art large enterprise so the message of advanced reading it all up and down this all up and down the spectrum and what we're finding his his customers are assessing which company to to to to us go to go to market with they are and wish to buy their say what am i a media needs and then if i'm successful what is going to be asked of me and six months a year a year or two years out and i think the understanding of events and the presentation of it
spk_21: vance not just from a capability stamford bridge from governance and and eighteen security dimension that is it something that's coming up more and more and more so even if somewhat are ready in the first month to say okay i want to have a full control center data shuttle full integration with salesforce it's important to them to know that because when they don't want to do is paint themselves into a corner and say oh my gosh we have tremendous success with to huh
spk_17: people and were collaborative really well and then find out that they hit a roadblock with some type of i t id requirement so it is part of almost every one of our discussions now and we have enough confidence in the pathway to not have of the for someone to do advance other again it's they we've all been since the beginning it's been around the
spk_7: earned enterprise you will sell some on what they need you will educate them on what's available and then you will support them throughout their journey and that is what we're now starting to see accelerate
spk_3: but wonderful it it's very helpful and then pete mcmahon on for you are just on the guidance you know i think we saw almost twenty million dollar increased about revenue in billings with polio and oh no i don't think we've seen that level of there are other raise before he can you maybe just walk through what you're seeing for august and the pipeline that gives you the confidence to raise got in so many boy our him you know as we looked at the quarter he would really pleased to see some really strong demand signals emerge the first one with of the transactional business
spk_2: which we consider such as the which came back to pre corporate love it within the number of transactions that came through his will site the time to close to the positive that data
spk_0: the second thing we saw would be greater than one hundred kid use which we consider large use those two hundred and fifty eight percent year on year so really strong moment and as well and then the last signal which was very meaningful to us was the first quarter of the gate with advanced processing and packaging we
spk_10: aw that gain traction after being announced in june we booked over one hundred deal and it was and seventy four adopt and transaction so that the confidence that we're seeing as we our guidance and revenue and billings that we shared with you
spk_22: what about thank you very much
spk_7: and the next question is another i'd have faith in there would be bank great thanks for the second question here just going to control of their more on on the strength of years hundred radios and
spk_2: oh the just want to go best and her kind of what you think that the biggest drivers are with that with the map or the market if he gets you know improve execution with and your yourself a bar you know this or something fundamentally changed in the market
spk_23: what about of last year now that the that is is hoping to drive and support this
spk_22: i think we're we're observing years when we thought about how we were going to orient are offering with advance we always talked about customers customers customers how they going to perceive it how can they understand it and then after time but customers the much was said hayden so can be huge benefit for ourself him so you're hiring you know up taking
spk_15: i think thirty percent more quota killing reps the impact of having a more easily understood offering with value statement had a massive impact we're at the beginning of that and we are hiring very sort of way throughout this year
spk_2: but again that combination of both great for customer much better for that new on boarding sales rep as well and i would say again both on the commercial dimension and large enterprise but that that it's good to hear into third or gets follow up on that
spk_24: yeah good hear that the you know continue feel the execution and ayers there that are we they get about that the channel opportunity and in have been having that augment
spk_23: that good american version and and how does that channel i guess kind of changing the the type to customers the opportunities that you're bring it in here now
spk_0: what what we're recognizing your fat that the channel it's not just about who brings leads to you it's about who can who can also provide expertise in certain areas and solution and that you're trying to solve for see the of someone who steeped in manufacturing steeped in healthcare steeped in technology best practices those can be super additive to
spk_7: your to your sales business or when we talk about the ninety three percent year on year increase it is both a combination of people bring your field and also a system on deals so i think that that hybrid go to market of smart she team combined with partnering field who's the trusted source already wifi that is actually a very significant portion of that will week call the channel business or bit nicer out they take my questions
spk_2: and the next question it from the line of michael karen wells fargo this is my gullberg on for michael turn i want the kind of piggy backing from the last few questions want the success in large enterprise when you think about both the impact of the channel as well in advance how can we quantify maybe the increase in a cv for some of those are the park you're like the old or deals with advance obviously there's with seven or ten largest the transaction than the quarter or metrics or of kind of curious how to put more car around that
spk_25: i think when we look at advance it's it's a driver of it's a sign and some is making a more substantive advanced investment in the platform
spk_2: we do we do expect that all advanced transactions for be north of five k rights or everything that you have is going to be a creative to that to that measure in terms of when partners or involve i think partners are often very well suited to have larger solution discussion they may know the business more deeply the
spk_7: may know what that businesses looking to saw for which i think lend itself really well to a more and and substantive solution that for that the presenting very often those larger solution recommendations
spk_17: require the strengthen the platform that advanced that are that offers that let's say if you're looking to sell a very significant solution it's probably going to be more than seats it's one of the key indicators that we see when somebody is really looking to do something again beyond that transactional work management work
spk_12: yeah i think in terms of i think it's it's it i think we will we will keep their terms of additional texture about bigger we're very pleased to see that the growth will continue to be be shaped by just flat out usage and then also the the swede offering that we've been speaking amount
spk_2: very helpful thank you very much and a quick follow up on when you think about your business longer term obviously you stated the sizable combat with watch a greenfield with a technologically speaking of we keep hearing a is coming until the work will our nation has use cases how can you talk about your plot
spk_12: either using rp a or coming up against that eventually competitively and just thematically as it pertains to you as the smart you business
spk_2: yeah michael is jean and i would say that today we really see our pk as being a complement to where we are when rk vendors are moving beyond just trying to automate kind of wrote process and starting to move more to orchestration and you saw us i think love quarter we announced our integration with you i path and we're seeing you have the ability to engage with customers as they think about their whole software suite and really think about what are the the workflows it maybe we'll originating rp a and and move over into smart she to engage with their teams and it's really not a and either or it's really a boat from what we've seen and i think that part of why we're building bridges there and and and a license because we hear that signal from customers that it's being part of that strategic stop or stack really requires you to be able to interact with pk and the other big systems of record whether be your p or your hr systems and so that's what we're building for
spk_0: or
spk_7: if i could add one one piece is any one of the the hallmarks of our category also is it provide the interface it's not the platform that it only the platform the prophecies it's the interface that people can figure and and actually utilize to update that information and trigger event
spk_26: that interface takes years and years to develop and tune to get aligned with the use preference
spk_2: in i think that's one thing that will that will keep our category very relevant as people looking to solve
spk_27: at the next question it's on the line of our is a calorie up with rbc
spk_2: i want to for that thanks so much for taking my questions guys nice to see i continued improvement the here and percent like actually start a exactly on that so so by all that tracks our business continues to improve just want to get a fan how much of the acceleration and improvement in the underlying that so far it is just over a recover murray on and you know some of the headwinds fading that we saw during during the pandemic you know i can be coming back ah versus factors are you no longer term secular tell in things like work turning more be more hybrid turning more asynchronous and in nature had those tell when started to show up in the business or have those you know you really yet to play out
spk_28: out and then i've got a follow up
spk_3: every i really feel like we've we've surpassed heading into code and
spk_29: it's really refreshing to see him offering and try to think people's fluency around what they need and what is possible has fundamentally changed over the last eighteen months
spk_7: so this is not that about getting back to where they were this is that the people are too much stronger position today to make informed calls
spk_3: peter anything that
spk_30: i think of what i'm to universe starting to see that recovery go beyond where we would go the time and you can see them the metrics whether the transaction volume with you see that in the cycle times your thing that in spain so i think you're trying to see that i think is it really to the
spk_31: you know obvious systemic beneficiary of it think that the longer term question would clearly over the last twelve or eighteen months the fluency with the piece has gone up and you're seeing that and transactional on
spk_0: okay great that that help or and then people are you on on the billing side a tube you know it looks like there were the a big uptick i specifically know the next of buildings that are that are annual kind of that actually higher than than even it was pre kelvin it i know during the pandemic there was some talk of of the
spk_7: awesome wanted to go to shoulder duration deals right your monthly ah versus the annual of the old he can you talk a little bit more about that makes and are you see more willingness to sign up for an annual deals nurses that monthly on a lot going on there how should we think about the billings an actual invalid that i think we should be if you look at t mix we had the head of the the in the thick of the pandemic we saw little bit more from the monthly sort of plans we saw place but since then we've been probably consistent of the amount of and new plan it might vary a little bit by one percent plus or minus and that of the trend with me
spk_17: okay wonderful thank you so much guy
spk_32: and your next question is on the line of tyler red cape what city
spk_12: hey good afternoon picture taken my question a lot about data resident the this call him just really wanted to expand on that topic a little bit give us a sense for your house significant event of a breakthrough
spk_2: that capability was and and maybe why
spk_12: wasn't released earlier a distributor sense for maybe some from and up the man could see internationally in from from rolling this feature out yeah tyler this is jean the the real unlock for us and a residency was the transition we completed last year to public cloud we really needed to move our infrastructure into the public cloud to enable
spk_10: the ability to extend to different regions around the world and so the first region and in the area where we've seen the most customer interest has been in the u and specifically residents residency requirements in germany
spk_12: and that really became an unlocked for us out to be completed that cloud transition we do here significant customer feedback around the need to have a local resident they are having their their smart you data being in country
spk_7: for a broad set of use cases and and doesn't mean that we don't get adoption in the you today that we we definitely believe there will be a lot less friction once we have that unlock and in germany in particular there are a number of dead or regulations that the prevent certain types of data to to be stored outside of the country you have a similar scenario in
spk_32: amir australia for example in a government
spk_3: customers have a requirement the the all their data be in resident as well or and countries well and so we see it as a natural extension and as as in the coming quarters were more to talk about the things we're doing to expand our footprint and grow internationally and and we believed archie regions are going to be yeah a key contributor to that strategy
spk_0: great and a follow up just on the guide empty certainly yeah in most metrics revenue buildings were raised but i look at operating income in a huge yeah performed by over ten million and a quarter of to your guy but despite the reason and revenue looks like you're you're keeping here for your operating guide the same so it was just curious about timing related
spk_7: the you know i think most companies we've seen just you know in terms of the the budget for teeny returning and returned offices be up to get pushed out but any collar on kind of were that incremental spend is coming from thank you
spk_33: so we're investing aggressively an opportunity we see ahead of us so all the over performance or deltas we apply into investment capital and that's been the teachers are far have a hobby blocked rated
spk_3: that kind of what you're seeing across the board we are committed to the fifty five to forty five million in often come that we've got to do and we're investing the delta the negative
spk_29: they get
spk_3: once again later get them and if you are like to ask a question please post star than the number one on your telephone keep it again that stall one
spk_18: and the next question it's from the line of allen that costs game with was research
spk_3: hey there thanks for taking my question a once housed the linear already in the order out of the comparative prior period as well in terms of how the pipeline progressed there anything the think they're like to be exciting from an upside perspective such as federal activity going forward
spk_0: and up going to call it
spk_1: to the video we find a quarter with very consistent with the previous quarter for no real change their i think in general we were pleased with how the pipeline converted both in quarter generated pipeline is worth of by plan before the start of the quarter we had similar metrics across the region and segment of few very consistent
spk_0: got it and yet also mention that gross turn is getting better could you talk about what is necessarily driving that that a result of the market or what you're pursuing and how much better can it get thank you
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