NUAN - Earnings call transcript Q2 2018 | Nuance Communications, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to Nuance's Second Quarter Fiscal 2018 Earnings Call. At this time, all lines are in a listen-only mode. And later, we will conduct a question-and-answer session with instructions being given at that time. And, as a reminder, today's call is being recorded. With us today from Nuance are Chief Executive Officer, Mark Benjamin; Chief Financial Officer, Dan Tempesta; and Senior Vice President of Corporate Marketing and Communications, Richard Mack. Mr. ahead. go please Mack,

Richard Mack

and everyone. you good Thank afternoon, Great.

risk Before our our filings estimates, discussion I in these want our subject expectations, material of I for can you you that to remind please to are a this statements ask other actual statements. discussion we uncertainty differences SEC forward-looking that cause begin, and These and would afternoon that results. includes risks. predictions, to refer

otherwise will statement the the remarks then, as to call stated. of today all outlook intended repeated CEO as call. to supplement are that, introductory about unless call results will to found will the are few different On portion I'll a be Mark. use release, in Q&A. Benjamin, With our Mark prepared the website. be here. who comments. on slightly call this Today, And Tempesta and offer not income in call. the will joined we over issued results the format open press call, of we our Those briefly remarks noted can turn And weeks ago, Those a this our IR non-GAAP references talk to Dan we advance before for and on

Mark D. Benjamin

everyone. you, afternoon, Thank Okay. Rick, be and I'm here. to excited good

at to priorities dive into initial share myself, introduce my minutes company. I'll mentioned, to first few my we Before and a the quarter's Rick results, take impressions talk as the

inside strengthened. optimism business evolution. confirmed In my I our for point its a the three conviction at reputation, been been As weeks company pivotal has I an foresight innovation to outsider, believe has the and for because attracted future its and was my Nuance in for the company, just is

conversational in everyone technology, in channels this by customers, markets, our strengths we know real fundamental you all excellence that AI. backed For and firsthand have following business,

stakeholders. for deliver company I leadership Over will and the value the believe long-term, compelling position our that to expertise this

a principles employees the am with multidimensional you businesses we that company the deep to business to expect dig from as as career. virtually motivated me who multinational, from execution, into in transparent to vitally And on them I'm and momentum with this open a and are me course in clear from accelerate and successful they of that's my good you been Nuance to forward. focused and innovation have have for understand early a solutions results. here really we to be going also of These to my regardless business-driven put this they they evolved for intend do path me over leaders and key some drive, I businesses outstanding delivering So firm days company. culture our I create. must leadership growth and should learn who believe the create turn customers what large deliver that audience, culture returns believe a every I businesses. my the had can priorities in fortune Nuance enter principles expect markets, value communication with with shareholders. for look looking focus and I've our phase? that I to of audience, few is next core on shareholders. across are I'm the of our integrity aspect their in and at core help have purpose-driven to teams superior the a must accountable believer for And experience dialog. in empowered forward organic business results consistent or working in lead our company. and and our just team growth for that leadership team these on drive our I my leadership truly leaders be the true it several an and To what they power at It's customers. for teams important impressed investor to so, we

is say. we our First on commitments and delivering doing foremost and what

detailed conversations Nuance's is Second with associates.

And Third a is is shareholder customer introductions importantly, immersion. fourth listening. of more bit and, fair doing

and to working this Regarding change and includes everything execution our without delivering priority else. on doesn't first. shareholders. the almost say on comes our associates or saying away commitments, but while This our I'll goes it This anyway, I customers, team are commitments go our

prioritization kind is and is my What right. on customers optimally we to long-term business do detailed really already we position to to Second I've of reviews generation and can value. growth our business a can and review company cash dynamics? should questions, and shareholder What do enable sharpen you effort starting understand we and at exercise expect? at us strategy the important mix and to asking the maximize invest the the know, to market. so we I've business. achieve? competitive of and will What participated What our so portfolio business work take Nuance, immersion have where should the the outlook? core for comprehensive margins, As are and fundamental this a it we cut? in the Where businesses asked approach and time

most have of valuable my Third, Throughout of found career, customers on that information. I are customers. one sources my

finally, understand we a at already lot scheduled why they with portfolio of months conversations spend with a business shareholders. investments number instrumental I shifting been and of their Nuance they better how to I'm has feedback I've twofold. how prioritize. strategy do Nuance. time So with needs my dialog with goal will Their shareholders, and be as them had our in we my evaluate And, in first over I'll detail continue time. see want to my and and

help and value. your to how and of from importantly, shareholder perspectives is to guide to can introduce run your a sense but, concerns First is Nuance more my you myself to me, expect what offer we goal listen and drive

will that our assure of I my and be You team each at through looking can actions TSR lens. a executive rest

with earlier, more look you I forward I opportunities. noted those and help I'm to turn be opportunities on our and to here realize of details many will to ahead. at over speaking to Dan the Dan? the working the provide all As to now excited team with to call Nuance about performance.

Daniel David Tempesta

Thank you, Mark, and welcome to Nuance.

I the Rick brief start key certain of in review As I'll with to three noted, outlook. changes In and a highlight my want the areas. our quarter, business comments,

performance our the with with quarter with largely overall in pleased second we're First, expectations. line results in

taken we several Second, Healthcare, to business, steps discuss. handful headwinds reporting of in our fundamentals includes business the which in business, of despite the confidence which in additional and changes we've Enterprise, the and segment and streamline Automotive especially And, third, will have simplify a I organization.

the of quarter. Let me with begin a review

in EPS meeting organically, press up guidance. delivered of remarks, As quarter. both and our we you revenue solid release prepared $X.XX, second X% a We non-GAAP delivered and our saw $XXX.X million, of non-GAAP midpoint

also cash of non-GAAP We of $XXX.X net to operations strong flows delivered equates from income. million which XXX%

are some underperform and with Enterprise organic into X% for were of were X% and QX. half Bookings net license previously growth. providing and investment growth. up new of drivers Automotive lower We've deals performance in the Automotive growth Healthcare year services bookings by prominent our Our annual new results, of prior in of first driven arrangements driving reiterating sequential continued revenue the are organic XX% an strength look to large quarter, the growth compared new XXXX. X% shifting vary year. half and of the the the measurable on XXXX second our down Net net did bookings urge growth guidance pipeline, the delivering for quarter, we shareholders quarter-to-quarter, to as said on organic in first with sales bookings to growth that basis. revenue X% the fiscal And timing XXXX Healthcare quarter based quarter businesses producing fiscal in in year-over-year. will multi-year X% we the at revenue our

Turning moment, ongoing market the simplify to streamline with for more transparency. actions about efficiently and talked and to improve operations our we've address opportunities business to best a recently you

new segments we the information reflect reporting. and quarter, we've last provided to discussed to changes presented our this made for several reporting segment As periods

First, we separate as established segment. a reporting Automotive

segment. product comprise Services segment and the represents Revenue the merged a about Dragon Subscriber Enterprise our third, we known Devices X% our now which SRS, Other, Second, business TV as called And, business, line of into revenues. our

cost Enterprise, It As reporting Healthcare, segments a allows of Automotive, and Other. result, management. to the and objective profit This our with run allows for now: investments. segment structure Imaging segment in be have we five focused primary management Devices more

evolving business. it provides best path forward the and of a the In light in our opportunity key conduct market addition, business geographies strategic assessment dynamics in review that for the SRS of the for to

expectations largely in business goodwill effect services this of million mobile Devices, As of and for mobile causing I'd model resulting operator and to business it the million customers handset have briefly relates our reporting in our revenues million adjustment is $XXX subscribers, the their volumes change environment, carrier reducing in change business, to impairment materials for saw the India accelerated SRS $XX dramatic our relates of impacts our has business. These legacy disruption to address to to in their $XXX impairment and today. value the our primarily SRS of we where like you the relates with which markets, models demand experienced Devices goodwill and to materially our provide Brazil. which markets value-added emerging The unit. services. impairment SRS our the carriers to

expectations, our net in Upon the we carrying performed on impairment. its to to review, line we Although the exceeded in Devices found this has value with required want fair on a from minutes a resulting I were spend now guidance. separated Mobile value, estimated business we standalone segment, evaluate basis. and few the the conducting assets when our

of we've significant the returning organic expect year. growth and these and fiscal of Automotive SRS first drivers second of performance businesses seen with with growth and to in offset in the Enterprise business. the build The remaining growth We upon Healthcare will primarily be the changes our half XXXX by half to

full let factors in these for fiscal our outlook With mind, me summarize the year.

for maintaining guidance X% of based our growth Enterprise. Automotive bookings strength X% are and of Medical, we on noted, the Dragon to As

this billion a X%, growth $X.XX previous X% revenue, we we SRS reduction the our are Enterprise by to due non-GAAP $X.XX With the We to billion. Healthcare, our expect Revenue versus expect led SRS. in billion half of For million, and Automotive. to primarily growth of due of the revenue non-GAAP be X% $X.XX by to primarily midpoint billion range in $XX guidance second to again in earlier to to revenue change will organic change, guidance X% $X.XX a in our business. compared of reducing now range the range

result a guidance lowering points as basis margins. which operating gross margin gross of our from SRS XX and revenues We lower our higher approximately are for ranges, previous carry by margin primarily

from in consistent finally, from million EPS share With these with expect now of to compared mind, $X.XX $X.XX per to previously. between million, million expectations. share non-GAAP new between expect we million, we $XXX cash And, flows margins $XXX operation $X.XX EPS down $X.XX revenue per range and $XXX our and prior the $XXX and and

to range the guidance, of briefly non-GAAP range it non-GAAP to $XXX million to we EPS $X.XX a quarter third Mark. in turn fiscal per to Turning I will of and revenue diluted expect share. now in million $X.XX a back $XXX

Mark D. Benjamin

our reiterate that business. the want remain I and the team confident I prospects Dan. of in to again and Thanks, fundamentals

transition, outlook. As of be period we to we going longer-term our with continue prudent are this providing through

transformation XXXX for results in for do everything have value team look shareholders. to we long-term and right the provide your the questions. with fourth to forward happy the and quarter announce our business, working be I Given to what's ongoing the management when We November. we we would business underway now take guidance our of will

Operator

you. from question from And Kalia ahead. Thank Please Saket go first our comes Barclays.

Saket Kalia

and Hi, guys. questions taking here for Thanks my welcome, Mark.

Mark D. Benjamin

you. Thank

Saket Kalia

first my for for Maybe Dan. you, question Hey.

I what SRS operator if wrong. we've is the there called correct segment in think the I'm past me and mobile

detail and for which pricing just think Can how of level SRS you the those lower mentioned the deeper one affects Nuance demand you I plans in business? change some maybe that changes will the go solutions. customers remarks prepared it through

Daniel David Tempesta

Saket. operator you business that are we Thank Sure. Yes. our Hi, you. correct. It referred And to is in mobile past. the

other a services other services emerging do there's the business lot the a was provide market, we double-click, and value-added of of And upsell services is if prepaid in such Brazil, as for course, So where value-added this to prepaid or top-up to marketplace. I markets. India

So revenue we when of with platform activity share that activities the those carrier monetize and occur. we

whether they're upsell. Brazil, offerings. are activities, but data, it'd in towards because opportunity the be there and there's So, India top a has to dramatic whole and been less of shift off Those voice, prepaid and a services of all bundled still offerings bundled other host text,

and outlook. there's just to demand the to less volume is that down that and going a opportunity, that since having And is our impact going So we trend think is goes outlook on return. – real shift don't

adjustment. So at take to this time, the it's prudent

Saket Kalia

sense. Mark. That my Maybe makes for question you, second for

all, of thanks the lot first So, for intro. a

maybe think you. deeper some I about into that of bio that one go time your of ADP but read at proud just accomplishments for ADP, could us have most level you're Thank matter? all of or your your time the you NCR at

Mark D. Benjamin

you I'm at did to I privilege great have the you mentioned, happy And really be tenure ADP. Thank the I welcome. Yeah. think, some Sure. for having of here. as

stands out many may be me it difficult one to that So, pinpoint item from others. any specific for

my would plus colleagues performance ADP really sales from of so think suggest business, of and with do operations was products. of. mean I running different sales customer I accomplishments teammates the and large on tenure, just and had With delivering maybe I incredibly of to proud experience. across I many is to part there at that many driving aspects look back how I years great leadership being different level, roles and a business and the ADP of Saket, XX And I that's really great So many strategy on opportunity after high at businesses part focused the

types then of more were able I I of run business. different those functionally. experiences to some many had So really was the And perhaps

of and entrepreneurial type start-up running that that and of to find core multi-billion from today were needed to to the mature that new businesses of parts expansion. ADP U.S. ultimately adjacent businesses the growth part became company So being new more within

margin was my As experience expansion, I well part there opportunities market that as look with back I geographic also expansion, international on expansion of.

still and my memories colleagues many So that of running company. fond parts many the are major there of

experience I'm here to really that reflect excited really So at Nuance.

Saket Kalia

much, Thanks Mark, very helpful. Super welcome. and again,

Mark D. Benjamin

Thanks, Saket.

Operator

And Craig-Hallum. the you. ahead. Van from to now Thank of line Rhee Jeff go Please

Jeff Van Rhee

I'll me, segment starting – the my again of guess team. I performance Mark. working you Enterprise, you. the some the questions with sounds quarter, Look expecting weak welcome, time A guys. Great. like add the look now guess to implementations more in I the in seems that handful this Sir this I Thank a driving just call center, spending overview, solutions of forward commentary. you're and for it a legacy forward, those biometrics, are actually function of contact AI, doing very, Is next. softness? Just that's what is very like where more well. little operating (XX:XX) or is of a right There that with environment

there. if you maybe could So, start

Daniel David Tempesta

Yeah. This is Dan.

there. didn't across issue. that our part quarter. pushed We one just really QX. didn't them think of just we underperforming We unfortunate we was That It of had execute There business the out and was I an some wasn't saw an execute. on we light to the where were business. licenses

networks. services, objective. our didn't the full of activity service given we weather was on-demand We where some standpoint. weather our adjustments were than seasonality and some expected bad, some from the offerings wasn't cloud so our there achieve of of we our some And the professional have just did large professional with were we that a working the arrangements some lower services outbound And on, Our program customers. run volume that timing through then had of

longer-term across issues. So, don't board. really was see the We any

growth enterprise going as for growth expect and year. we We half the into division expect end a to second the

Jeff Van Rhee

a look QX in in these mean, you bookings, The I roll and them lumpy together. if at crushed you roll if they're Okay. you understanding – take it

But half in quarter areas for the the see specifically understanding strong which most this you and did looking just first lumpiness, certainly you're the again, okay As half. lumpiness? particular second it's

Daniel David Tempesta

deal can we've in in see deals as Well, can come – because a Auto in don't you have the can very have – it talked space about you the and space – they we past Auto and large have large the then chunks. have then

good you quarter. we X% as the course, we was Auto quarter. in with the of a forward, second We of look had to have QX strong very large confident X%. deals feel didn't recur our But, So that some

the So that so – Dragon feel good be of it'd have whether a across Medical, guide. that we still lot business we us Auto, Enterprise gives large and deals about

Jeff Van Rhee

it in any on What Okay. level, Paul what's Obviously put respect back the looks pretty results some side. in sales stay Imaging? with Digital a know there you're then them team on Digital on seeing weak this Healthcare about quarter. I around also Imaging? but I year going realignment, and think start thoughts a some this about good sales momentum the Expect to like there was to are with maybe false

Daniel David Tempesta

Imaging very in Al Monserrat all, XXX dealing had start things and two Number with with areas. OEMs focused we've the talking best company. the we're we've on. continuing on the in focused strategy heavy the is days. with still the been He's about last go-to-market two He – realigning to that of over dealing highest our that's is started busy first organization been with had and He's Well, it's a XX one months adjust connect January. that focus prospect users. end to a sales

So channels continues and well. then that as distribution other

Al on focused product our is and and now thing very is. is our products what offerings second The our that roadmap

back which two with a tremendous this a those and division get share market have we making, But been division. We some believe to we flat focused investment in. by now can the in Right areas we're growth. it's space in product adjusting we've go-to-market this are

Jeff Van Rhee

quarter the few – can was That you but at the little gaps the you a there numbers-wise, in me. fill the and to a of was midpoint there? wide in guess spent I $XX unclear just range then And a million for fairly Okay. was gave description

Daniel David Tempesta

about... You're talking

Jeff Van Rhee

backed non-GAAP. review. the It's Other/strategic was from This GAAP up under to

Daniel David Tempesta

Yeah.

I was mentioned think million. about we $XX it

you second the the was the we consultants assessments business. a very as was in The second that and with for quarter was, And for as large for the very and number well. business. And advisors. quarter undertake the busy working there perspective first quarter us of as from Automotive business well as, parts of effort busy Occasionally, strategic the very a know, different one, separation

a a As system we as we've was of well created items about, separation, separation, There there. organizational as segment. financial talked now lot

second quarter. items combination the the of in it's So, all those

Jeff Van Rhee

Got it.

else don't caution, to let Okay. Last XXXX the And explain would the want SRS piece in, and Mark necessarily revenues, a somebody weakness, Offsetting has you business. small given rubberstamp forward that that's understand one a guide. recurring gone percent some of that coming I'll the with although here, obviously on. of it's substantially. up of jump But relatively obviously is the overall obviously

So visibility going pretty than the SRS? business good Does the into else the been anything pull should XXXX that out-year. have decision other underpin in to the

Mark D. Benjamin

this No, Mark. Yeah. is

of comment, think Dan, but I captured let So it. I'll course, you've

I came the think I all the think driven by that's really quickly XXXX certainly that. why SRS and essentially adjustment you impacts that essentially in see is

forward-looking right the years for be be bit on as We couple the on think drove XXXX the as I pressure during likely of that next reassessing I the business And would I say, future here that me I would fourth how of guidance at call. as and mentioned, prudence really we guidance approach little in timeline. quarter get far how time, quarters. perhaps which XXXX with that'll just performs a and thought over guidance, I these involved SRS, as to see

Jeff Van Rhee

Okay. Great. All again. Thanks. right. Welcome

Mark D. Benjamin

Thank you.

Operator

of from now Thank Singh And to you. ahead. Stanley. Please go Sanjit the Morgan line

Sanjit K. Singh

on role. Mark, taking and Hi. the the you for welcome, Thank congrats and questions

Mark D. Benjamin

Thank you.

Sanjit K. Singh

forward Looking you. with working to

Mark D. Benjamin

Thank you.

Sanjit K. Singh

higher so had level some questions. just I So

addressed to mentioned a out you if think bunch of could in you lay of for – talking is the six you're detail year? of shareholder you of customers. I we sort base of should a want later plan expect? a timeline script. from over the But wanted just terms expect you should your you that going timeline But can Can – the sort in what what your be this it's to on the shareholders next whether just communication a of standpoint strategic you give sense what to months,

Mark D. Benjamin

involved review a It's here, I'm peg quickly. so over, to to and call my my do very the probably able very have already you businesses with here opening business of my I it, the and XXX think shareholder – and very is reviews portfolio in fair which Yeah. been My plans get question third XXX, the week exactly comments, customer conversations. this begun, internally as in described I plan timeline. next days I But meetings have a and deep

I'm While the on future the team opportunities of here, with for embarking and ultimately management strategic visioning that are the some company. we doing

I already strategic would hear including Sanjit, end time directions you before beginning to or anticipate fourth me, future quarter the look So, on some have management of be would the the certainly the Nuance. you'd some and of from team,

Sanjit K. Singh

helpful. And sort to I the the of relates and then business. of And it that top. wanted also Saket That's super a revisit also on think asked I dynamics background question the your to

business. think we in what teens. extreme quarter in So growing see last this Enterprise, volatility sort the I the the was this is year of highlights time that

down This quarter was X% organically. organically. quarter X% was Imaging up Last

it's This down, quarter right.

just a in of So the volatility results. lot

high guess execution ADT any level the is maybe have of my and I still roles experienced thoughts previous sort about challenges levers whether similar in what to tighten be (XX:XX) pooled or that at the volatility? on up you what extent the otherwise So or your to question could

Mark D. Benjamin

Yeah.

quarter-by-quarter. a far the team XXXX. the revenue think XX% as to as fluctuates range And, there And back I here done low has question. good that great So a from base again, moving I good recurring think, that into very it's here job, mid-XX% is a

there. I do of a we So think have lot goodness

do have and we licenses have models legacy come a we I is the think some the create quarter-to-quarter that. variability transactions large where of lumpiness and that and can bit business that in

the start to recurring cloud and months, my as and base. that this six hold, next in So focused I on it, take call over we're the priorities grow businesses to how priorities team's we're going that think be to

take fit the way the look into create a our include the careful That could business businesses of don't go-to-market. include streams. solutions. we'll certain and recurring that of grow way necessarily sell parts we'll some that moderating our we revenue And think could at I the

think and really I showing solutions, really and and are part a revenue solutions hold Automotive Enterprise some really cloud nice could comment large that our taking that thing growth. in of those recurring specifically is one Dan in Healthcare, solutions their

So certainly my to part that of predictability really up goal And is more to to a move percentage that's the because quarter-to-quarter solve you improve prefer this and prominent I team recurring like I think have revenue consistency. the challenge for for.

Sanjit K. Singh

my Got question for it. maybe And Dan the to margin. then back it is and last goes

I need I But invest course business think most the to get your in think you hit I guidance? quarters we you – that given three And third versus top that's sort guidance we're a managing base certainly margin margin continue ticked to that of guys that to downtick, where but that ensure is in the margin. row know pull can this think that there growth, how just continue not going line the here the for context margin shareholder I and delivering of we down. has we as do appreciate in ahead levers is to that would quarter margin understand surprises? any growth to important a certainly the row a it's the specific of a in

Daniel David Tempesta

with pleased question. we've margin that It's management the this good a had. not a very, adjustments At we're team, point, as

we down points well. because the because the of are on security SRS. margins initiatives significant Last year, Some professional XX of from, you for just taking services. plan beginning make in going it those we basis year that saw shift reflect of we the quarter, AI. where and the That was a at – for market points of we came XXX we and XXX the we're wanted down points this investments if took basis to them into quarter, into course, conversational basis of little it going And, reduced

review. around very that as to initiatives to our up at and a undertake now protective coming here of bit. have to work we're portfolio to down going the And is mentioned So how We think we're now both is them looking get going to hard little very hard Mark to worked that We cost going Included with part of as work and it look always get that we're portfolio in they're been about well. back. upper try really the margins. and that be Mark really business and XXs cost I

Sanjit K. Singh

Thank much. you very

Operator

you. Thank Roderick the Communications. ahead. go to And now from Tom line of Please Stifel

Thomas Michael Roderick

Hi, chance question for the a gentlemen. Thanks here. to ask

big me jump help is perhaps mentioned of I think First bit couple was Is as looks line a little why just had it's like we us Mark, in should you detail. that the and particularly last growing look you Can on professional pretty of at it, services expectations? it question where for something more a a your But nicely, there bit quarters. going your there falling we it had Thanks. that to looking perhaps of? short expectations. relative at understand be little it disappointing aware

Daniel David Tempesta

achieve services PS. the what general, short professional really in that we you're Enterprise Enterprise strong It's But, from was PS didn't Sure, this is Dan. mentioned The quarter just right. a and of organization. expected part in usually I falling

professional services EHR strong optimization we Our business remarks. been QX had really have the we call we and due it growth have Healthcare business. QX. call growing. They've talk our about growing a in – in implementation and what That's in And

it whether EHR optimizing its whether cloud speech it'd And connect be more better to Epic documentation, So we the work where work go hospital on for and system make making we this EH more primarily. easier an the to has that whether into we workflow we environment capture the effectively, our is efficiently. back-end the physician

some QX We it. has to both that in happened large and this spike some QX. implementations had So

this the spiky systems forward. work. this in have to So large because what time. It's services come going quarter third hospital quarter. early. good strategic saw connected first gets it's in don't couple quarters. can And set in of at we We then optimization That us will very it we it the implementations the But and the so see down that's third be

that's referring so what to. And we're

Thomas Michael Roderick

fall this like And is moving you just for the of Can bucket. Good. that solutions thinking what something is detail. relationship follow-up Dan, seem Thanks. control going us embedded Looks on Curious more would the just probably Enterprise you're that be the that? but operator would to Okay. the TV question about start is that, falls line magnitude it bit And a if the of like Enterprise. TV some the within like into on a love relationships your that you little what all Obviously into we in hear forward? so remote of can Comcast Panasonic then, into like what remind that. the well apples-to-apples as relationship is Dragon would

Daniel David Tempesta

Sure. that It's is the the activity what some it other Comcast activity bookings the That of doing. we've and like exactly is. been

If can you you remarks a small business right growing. very call be see now go deep into that's will that the

was offerings. and that see some $X.X the a given that million we've old the it of will can quarter Enterprise in a we new reconciliation In the Enterprise. this bookings as grow You business around growth. of stand recently of up we've those seen to but given But call remarks some

Operator

line now All the right. from Thank of Eyal to Please Shaul go Oppenheimer. ahead. you. And

Shaul Eyal

welcome Mark, Thank my as onboard And, afternoon. you. end Good from well.

Mark D. Benjamin

Thank you, Shaul.

Shaul Eyal

coming go want I with questions to So Saket's ADP. respect of to your and out Sanjit's back back on to

boring there's words, different think – steady five some some Nuance? sense appears complex, room do So slightly structurally business? but do boring think in three, import a and more of very the divisions. clearly into the was right ADP predictability. would a Nuance How now How say in business, even to DNA to of be or maybe other strategically of a you four, you ADP good stability Eddie

Mark D. Benjamin

would recurring can a I have question. is Yes. I ADP this we XX% And complexity. course, its – good its Shaul, that has that company very Nuance. revenue we'd would referred as a would – boring but it's business, if tell we'd, be our a achieve of But love it you boring assure complexities. may to that, you I certainly call to be but goal say about even it is

I and would of for could here. core We'll achieve some something bring be ADP, and to at not able that pursues just only simplify be which of this but fit tell in that and that you it's product business investments simplification will in the that hopefully our early predictability. or help I culturally going think team my also that business. me growth aggressively. greater be I isolate which opportunities, could experience business that forward drive of the experience rationalization investments lines tell portfolio And on would here and you And greater at my NCR, I'll comment some I simplification. lines think to So, some that too will rationalization

So boring be great. would

had in a have at I we as easy me, hard business And the opportunities. of – and work as type even it think never was also it boring trust may drive ADP, we'll simplification. we complexities didn't similar those here But it seem to appear.

Shaul Eyal

going Got it. good you Thank so and much forward. luck

Mark D. Benjamin

Thank you.

Daniel David Tempesta

Shaul. Thanks,

Operator

Thank you.

Please in else queue. have We continue. one no

Daniel David Tempesta

for much to look very joining speaking this quarter. you you. forward all Well, you call. And Okay. thank Thank to next we

Mark D. Benjamin

Thank very Yeah. you much.

Operator

And, Thank and for participation you. you that for using today. and conclude for our your Service. TeleConference gentlemen, Thank does conference AT&T ladies Executive

You may now disconnect.

Nuance Communications (NUAN) 9 May 182018 Q2 Earnings call transcript