ABST - Earnings call transcript Q3 2022

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Operator

Good afternoon everyone and thank you for standing by. Welcome to the Absolute Software's Fiscal 2022 Third Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] After today's presentation, we will have a question-and-answer session. [Operator Instructions] I would also like to remind everyone that this conference call is being recorded today Tuesday May 10, 2022. to Vice floor President like host to now Kim, Joo-Hun of would turn over the your I Investor Relations. ahead. go Please

Joo-Hun Kim

Good of Officer. Absolute joining for and Ron today's Wyatt, thank Chief With Software; and and Financial Interim President Officer on Christy call us Executive Chief Fior, me are afternoon today. you

Tuesday obligation and certain contained Software that formal today's call events except made forward-looking may forward-looking today's to result May as our would may Any reflect projected statements update beginning call to those of to views events, look. statements XXXX. conditions. required Any Absolute information, Before statements. applicable respect like a as otherwise, in And to forward-looking actual materially revise of the undertakes differ included in are new security of assumptions, forward-looking statements statements Absolute portions Software remarks, future remind by current with publicly today's these from whether that any results no listeners conference subject that are and risks, XX, or such date, as contain be could of future to or cause uncertainties

EDGAR. on these to and Company's will information risks, more go the relating would ahead. website Wyatt. Software's over Please which be like on please I Absolute to section most now the the call is of also assumptions, on MD&A, to For uncertainties recent forward-looking and appropriate to the and SEDAR Christy refer statements, the turn now available available

Christy Wyatt

year strong am thank quarterly everyone pleased our share today. QX. and us to I Thank Joo-Hun, you you, results for fiscal to joining

ARR by and $XXX or recurring the revenue ARR annual government mark record driven This quarter we broke enterprise growth. million

in grew XX cash We growth flow our of by demand and consecutive the product and lines March is record total education growth also XX% operating during government is of last peak quarter ARR with XX%. Total seasonal of record COVID across ARR represented and the was of by purchasing normalizing ARR consistent driven enterprise which segment Rule and performance. of X% function XX% seventh Education ARR saw of quarter. delivered the year-over-year, a also

see following of margin $XX drove flow market global seasonally months. as grew million. to from contribute million go-to of our in engagement and to year. XX% strong of XX% the to continue EBITDA over strong cash Strong strong summer to the performance by International Adjusted operations heavy at enter cash our operating we We solid continued adjusted revenue margin remained XX%. levels $XX.X investments quarterly past

a Australia in distributor added result a As us part assist key as DACH and The more Nuvias is recently Zealand. New Orca in of in Benelux strength business that in we reaching two industry the our expansion, customers our trends. and of region to technology

first is increasingly security continued and within solutions enterprise toward a and from the network security Trust The models. shift legacy Zero customers endpoint away

that permanent endpoint second or security strategies. support and trend hybrid work cloud-centric driving the is remote and towards The key of is ongoing

endpoints connecting active our year-over-year. increase a devices X As of to million million quarter with services, the we cloud exited XX.X result, an

Before Ukraine. I to quickly move on, touch tragic on I situation in the want the

have not was in we Ukraine business core as Russia. or no operations affected either Our directly

all posture These customers, cyber that has an in and than now Absolute vigilant controls ever early self-healing supporting reminder effectively ensure We protecting their have them about place are Security would value that security of relevant. be clearer the escalating of events more reference previously the our two an the events for critical been now known business. provide and of the enterprise. secure since and on that to announcement need a how as more Visibility enterprises The region, NetMotion. is and update Access solutions within end the in segments security about happening active which development across have thought we horrific and the key has endpoint, Absolute hope Endpoint are in product resilient I Control work surround been VPN a conflict. been we year who ZTNA may and Secure critical the employees products I the our it Since or our NetMotion never and Absolute acquisition,

and calls start first our telemetry. based on on endpoint. the previous making Absolute in me Let we've about talked unique Secure intelligence We've been data investments with analytics

This security population. data offering security and to IT their and data, leverage assess performance the absolute quarter, we devices, Endpoints across for and trends Insights inventory their applications, launched teams, ability device to entire

customers, compliance endpoints of our understand manage to this and CrowdStrike. institution SentinelOne, including Texas, Insights health is acquired The of a and critical enabling these and in ability the analyze financial to and monitor around posture. the One controls, their data better Tenable security them understand context security to to

without state every the that the Ransomware of will ransomware a a with sources the experienced continue was who next system. seconds attack a how details connection of were one unique and shared device, to it the to be you decade. risk our You attacks remediate to two while there our recall rise even some a compromised quarter we may about attack reporting I restore requiring the ransomware device leverage with able to rebuild in in and last customers

endpoint A and the are when within to recover. Resilience or product and monitor solutions restore and attack control new by to technology offering application healed respond we to quickly restore the to occurs. assist self-healing is looking our this capability if they a and can including part to unable recovery. health critical called security maintain customer in seen security Absolute, absolute in second and We've with persistence quarter, now health that Ransomware This interest, who which Response, previously customer to anchored by the patented one of endpoint new strong were hit a attack they critical of communicate their launched an solution our was And critical controls.

with expansion parallel, new with enabling which update In today self-healing, in catalog, resilient this We our my Application rapid me portfolio, on leads which applications Secure the Secure industry's than Persistence continue integration BIOS-enabled, second of By ability with firm it the policy as XX% first few availability, network have that first Access APAS, are to activate Persistence persistence feedback year. to Access. we self-healing more validated lists in our the we move integrate as Application standing networks mean that construction completed solution. service than weeks to persistent our is In infrastructure with a partners are we platform, integrated more we it as they XX that the resilient our application the a And cybersecurity their ZTNA architecture, and platform, has independently feature. in between resilient been Absolute intelligence. compelling. titles only only had last the of making Application resilient ZTNA very time permissions invest ZTNA leveraging in up the is also zero it and trust a deployment but has capabilities employees early projects for and not access customers And expanded One being specializes major eligible Persistence discounts. are to large result, ensure insurance

finally, and military to sovereign a their traffic appreciation organization have only international our We user having are confidential access person. requirement one like information tunnel enable and highly to it's us. their another government customers customer is reviews split re-authenticate. With the IT can also which sharing whose with training And successfully saying

rigorous our conveying two Access these to based Secure standards critical X certifications, Our SOC capabilities also are review. through achieving achieved X+. By Common and we confidence certifications, these more and customers portfolio security that Criteria gone testing EAL have even

years be our leader will Ron permanent And success by and honored has review technology CFO. progress ago, been our in the private industry. be XX GX.com the brings to we QX, we and a will Management was software the Gartner's were We a are instrumental of Ron more the to I pleased XXXX Absolute. are Trust Market as Absolute all were for GX's recognized Endpoint the wealth this call may public now the CFO tax of couple and Awards for very Spring in of familiar complete the for ninth of while Fior, companies and over we experience list in well and Security I the Guide consecutive Access. would as finance, Network with as financial of He he Products was for report. integration, was stability than Security quarter with Many listing. momentum years across recognized we you Endpoint to NASDAQ the details. With in search in a and category. advisor seeing CFO. an be recognized the of for for welcome Best Interim Absolute also the In Zero a that, to XXXX Ron Best like him aspects our of both Software to finally, turn accounting as leading

Ron Fior

Christy. And us. for afternoon, joining everyone. Thanks, thank you Good

today, call the cover to I important On two topics. want

current First, for fiscal Then I fiscal update will QX results. the XXXX provide over financial on and color I will period go our year. some our guidance

Now onto the QX results.

excludes on we purchase adjusted basis accounting deferred reporting any As a an IFRS are revenue impact that on revenue. reminder,

in as-if period In motion net adjustments. based any XXXX, but year-over-year in that of ago addition, our GAAP IFRS combined a fiscal on basis factor an year not comparisons are the results concludes U.S. to does

as-if in ARR helps time. the results September business the on and was that Relations transparent combined You report of prior an forma Adjusted We combined XXXX, in revenue million view performance the driven website filed was our XXXX on making QX base. $XX.X that fiscal year provides up the basis and XXXX. metric revenue progress meaningful by financial strong The section from acquisition business XX% in this on from XXXX EDGAR. for of fiscal believe revenue in total our over evaluate and of fiscal growth can pro adjusted continued available more we're a we the Investor QX find combined the SEDAR

government, and complexity basis. ARR revenue primarily $XXX.X end the growth on ARR XX% ARR XX% subscription driven ARR of The by by record the an of solid was year-over-year QX, This free unlike strength came offset in periodic IFRS in migrations requirements on basis. And on at the in overall that is about Recall combined growth revenue, year-over-year XX% distortions an QX. the XX, on-prem end perpetual by X% impacted as approximately from is was which subscription million of partially up was arrangements access, education at as-if year-over-year customer enterprise XXXX At the in QX. as-if secure a to licenses XX% from at lower ARR of in revenue. came not continued growth some March in found on-prem Total from and agreements. combined portfolio and grew accounting that

strength continue and this we seeing the our in integrated of We and terms strategy enterprise are government development in execute retention, logo portfolios. We in also our reflected I effectiveness breadth enterprise from as and of product detail see access improving will on and which to both ARR increasing being note growth new endpoint and talk secure net will about ARR the secure strong I go-to-market. growth in shortly. came dollar more

Now saw earlier, spending and Christy above is the turning deal growth comp. to for remains if levels. pre-pandemic QX in that discussed XXXX And in or XX.X%, education, high significant education. at of as marked still funding education K-XX tough surge Needless said that is available of recall, there education to point a say ARR period. activity you That COVID-related

and the see education. expect growth enter quarters comparisons, two in education continue we to stable seasonally As ARR normalized see strong to we

solid New a dollar as-if And retention an was was ARR year ago. $X.X XXX%. logo million, on net X% from up a basis combined

and and retention in of compare is Again, growth the New XX% Enterprise now business logo government prior year. well almost growth by and softness education. above strong a net retention of corporate is flat our function Net growth. dollar dollar average. down decline year-over-year in largely from has XXX% by the relative that ARR that relatively in the enterprise ARR sequentially government the tempered educational was driven the was tough

operating and $XX.X an earlier. benefit secure was million anticipated Moving EBITDA result on customer for by margin and Adjusted XX% better a discipline QX than that by operating a profitability quarter. driven cash growth was than slower adjusted flow line mentioned the of cash to hiring a expenses and in the The strong EBITDA of margin million, $XX cash driven adjusted combination revenue. had migrations of of anticipated cost we headcount and top operations and from record to from collections led strong have that We access XX%. operating for

margin to quarter. be a Taking $X we the in and cash quarters. we ended including the expect balance from operating As cash, though, by trending above growth flow the quarter collections based will million fluctuations lag prior debt EBITDA, strong continue a ARR with a there That reminder, generally cash on said, between $XX seasonal operations, from payments. at up quarter cash the March our sheet, look service dividend adjusted million

guidance. to Turning

revenue our We adjusted full year ending the as both follows. and adjusted are June outlook raising fiscal EBITDA XX XXXX for

We range $XXX.X $XXX a advantage and million being product increased million for XX.X% range revenue to the of our are respect to $XXX anywhere and from million. the million full to from XX% of take versus balance adjusted to go-to-market previous Adjusted operating XX.X% in XXXX this through a range quarter to of EBITDA to continue This With adjusted in fiscal XX% raising opportunities ZTNA. new XX.X% hiring implies revenue of from to growth growing guidance XX.X%. is to year Absolute remain summer. aggressive the margin work to development previous to in increase guidance we XX.X% expenses, things of capabilities of XX% previously. $XXX.X to before naturally investment our our slowdown plans to to

expenses, In in more our and to budgeting are to base our related related addition, growth we normalized posture, in as back ARR The for total higher costs. trade drive and office we work strong growth get higher travel sequential facilities well revenue. a continues as as show

to combined accounting increases combined revenue migrations recall for However, that revenue of in that these guidance as adjustments have based of have growth adjusted maintenance XXXX the rate fiscal if first in with discussed adjusted the to three base. from growth calculated the are metrics do on basis XXXX an financials, or our accounting revenues adjusted sequential previous and guidance for revenue as revenue call Absent subscription treatment calls, on growth ramp. destroyed year-over-year quarters fiscal benefited and IFRS conversions. we in continued ARR for not migrations, purchase company fiscal presented line in to the Please are our XXXX any GAAP and our include other the

XXXX, periods we forward. decline XX, anticipate deferred write-down over the $X.X between the We As quarterly support, as was quarter, continue in IFRS we deferred value we’re revenue revenue as million of and revenue this to reported drop With of difference $X.X fiscal be we enter million for future your is adjusted $X.X we going remaining significantly our numbers and forward the write-down XXXX, and taking will $X.X March and fiscal to The QX in move XXXX. million any approximately that million. questions. open appreciate QX, call Operator? will will that, and time glad

Operator

question. Raymond from question-and-answer gentlemen, go the first at and we’ll from And with Ladies session. [Operator begin comes question this Instructions] our Adam Tindle James. time, Please your ahead

Adam Tindle

Okay. ARR Thanks. Good milestone. afternoon. million the And Christy $XXX congrats on

ask question to trust to wanted here. business number I shift of that. the around a about talked You zero the one And driver as

speak level. at imagine You is tethering the to funded I this customer changing around conversations projects could things the how that. maybe to nature first like of you’re just

of the customer metrics aid the nature translate that’s to conversations you you sales strategic. some know to force, changes become you’re what the capitalize on And there So I to financial the more to that. level, at then, ultimately, going as how made doing

Christy Wyatt

you. Thank Adam. Hi,

spending us helping as in both is products that talked the lot the on actually whole. combination zero a a shift security a is but the actually of whole focus endpoint around two shifting of We’ve lot about So increased trust, directions.

the things next they the customers with using finding application sort we’re products, healing to XX to of actively of VPN path. pieces but to think such ZTNA in versa fit roadmap is these XX self-healing about on funded that can in of then and means the resilient areas to in in we go there’s also nice solutions, better project, trust ability know show into ZTNA, their two and the a funded And And of we are get them start why, we to opportunity so months. customer in an And are or projects, that about engaged what other their that’s opportunity zero also demonstrate already the that then think power It see resilience. already – self-healing onto I resilience such a nature these them we’re where to security. the vice other complementary talk

is customers. So I rapidly us with conversation we strategic think that our position all it And a market. know, does give the significantly in growing more a as

story as bigger – as ZTNA I it’s think in the – And to can is we sales that like go then from a force, What always, something have done platform able and picture continued years. into OEM the coming enable this This also because generation of both the start lot of integrated training to and to a $XXX spend billion resilience partners. together. tell with connecting story. Gartner initiatives do on million putting of the all customer together as demand our build a to work it’s we’re for function, we’ve well to moment in We’ve we to $X.X management. going to to resilience year have kind number kind us, says, we, the going we the continue around nice doing of about we QX, of go force as how strategic be out

coming talking of we as have coming months opportunity strategic trust to And many well. to to – those. zero XX them their years in in the As initiatives XX the have

we I closer days. lift, see into seen us, the we’ve as as It’s we at of FYXXXX. I some if well think, still pipeline in ahead a more, – into much look move of some the results. mean, nice we opportunity so I as early both take in So think very the

Adam Tindle

just in helpful. follow Very And a up for flow nice Ron, EBITDA and guidance. see the cash quarter, maybe as obviously, quick revenue raising to

you. comments cash to just considering I in some for but type that flow how think we structure rest think of get position, about I had missed, capital I the the you’re that in Any on Just investors about the of but you a bigger you’re interim curious, debt. terms from structure, question how in servicing would the and right servicing debt. be helpful. picture year about options you’re capital cash may have that it’s flow thinking Thank understand of CFO in comments often

Ron Fior

you, in fact, in been we’ve in ability feel growing I growing mean, service before our to obviously a Well, regular ability to last over amounts as Adam. a seen about expect lot And our Thank so. been we of Sure. very function debt. this lot good generate the natural of cash feel on general, comfortable as we’ve to and pretty a coverage ratio we is just company a EBITDA cash we We – that year cash. continues consistently on to basis pretty on just our it of our flows. that feel this you’ve generate doing – increase. naturally or and grow, even pretty a declining I mean, our the and we analysis significantly continuing

this on keep we’re So an obviously to at it. stage, going eye

everything and rising Christy? careful really that’s interest very where be we that, but and are to now else going today. right like with We’re rates the

Christy Wyatt

we’ve across to the through service think gone able that a beginning and our three started but very this growth. cash the demonstrated we’ve to out to ability those. think that also continue our execute the about to we were and that, we of wanted in all with And year, add talking at I I of to invest comfortable the as wanted, be flexibility ability generate saying to I we If Yes. moment year debt

a so, environment, right now less at we feel other longer-term very And we’re maybe when creative volatile good could our look more trajectory. in But we ways. about

on within business. ahead and to right of the of We’re managing leverage executing we it’s time the feel sort like now focus plan and

Adam Tindle

cash QX year? different for seasonally strong but quick, would And quarter, flow typically real that anything there it’s know this a is I be

Ron Fior

of. No, we’re not aware that

Adam Tindle

very you Thank much. it. Got

Ron Fior

you. Thank

Operator

go ahead Our with next your from Walkley comes from question question. Genuity. Mike Canaccord Please

Mike Walkley

crossing guess, you flow. some you’ve persistent My discussions you’ve million on Great. the helped customers also in cash this with curious, dealing how or the $XXX this. with incidents ransomware congratulations just and Could your ARR Christy, how changing is talk just potential out been about business driving customers? I pipeline calling

Christy Wyatt

Good and you. from Mike. to thank you, hear Absolutely

think really self-healing and every So talked day. context with about security in an platform, we’ve I that put lot of the while the it was of struggling and something ransomware customers to a are capabilities opportunity each interesting

And like going predict a earlier attack happen XX today think see almost something mentioned to that I that bit every we we I to two once little a every it’s accelerate ransomware so, seconds, maybe seconds. once

industry. across it every is so And and happening every across organization

mean. security of And and so get them itself of online. device means of wants to when care rebuild unresponsive We and controls of without is helping the having remote. that heal anything back other device iron, as think to persistent device that is of else. of start really while and the people back it can in understand get put kind is there connection from undeletable healthier something kind that to start into that which again to having are frozen where security, what taking some What them us especially we manipulating. it’s We it can self-healing really users do, remediate can still state can a nobody sort can it when risk that We oftentimes can and

having the it on a the and bright lifeline power really capability reach those devices. so to self-healing, power And our Absolute that has of shown light and scripting of

about have they and size There ransomware recover isn’t so think thinking vertical large isn’t when hit. And conversation up very customer able a to I a to of get and able and really or that to small, product. response as being eventually being kind customers a that market with neatly they’re very who go package how horizontal going

we broadly a across well. working integrate to out partner as as it quite how do figure our well significant so can their it offerings And as base opportunity and we’re within we see

Mike Walkley

was And then wanted endpoint two? guess, Great, thanks. secure enterprise above some sell And and is opportunities and progressing I strong access, the the clarify with maybe quarter, just nice the to cross how expectations. just between both, salesforce secure

Christy Wyatt

very platform Persistence. because we have as quarter still with we’re the is on in integrated early I So, said, first sell, cross this the

being Although very I has team in we of secure we it’s feel is nothing combining pipeline have salesforce as of at good think, access come more lot operating sort the as specialist internationally. we We North really look great sides. previous integrated NetMotion us. again, America, showing within client, the interest, the both it’s a half see changed. is leverage still from side. The on the within the access where customers a side that other front understand as we to wanting are structurally, customer But accelerating business, power products we would are I say of the seeing and able on as they the the capabilities way in ability secure And really leaning through of of started to self-healing of and a second the the really whichever year, of

way now it to had XX already if thinking, is new so, mentioned And What do? really in within the chapter gets the that rest customers. script, those them what nice applications my self-healing? into And a could it could else so be a really okay, security launch customers of my with sort also I side we’ve I turn of over NetMotion on so

Mike Walkley

and I’ll should lapping now, ARR smaller kind for question term? that business comparisons. a growth thinking help business business this in you some us how Thanks. maybe it’s the forward? about are maybe to education’s me, Okay. part this I of about know jump Is How longer queue. grower, single-digit for XX% high tougher think single-digit model into going grower? or we Last trends Just growth

Christy Wyatt

high education I for mean, run we see the We I in saw we’ve think really I that business. see in right last think while, particular. a that growth year. into maintaining the turning And don’t see rate said nice that’s – it don’t right? a We this about spiky neighborhood, we

I think of the QX that activity. year XXXX fiscal of was peak

So this difficult year-on-year. a was comp

we a lot think, I demand. but so, see And to continue of

in unique to versus new you growth, spend that think of I on well, can restrictions continue on one and on hardware. some lot of ECF is, the we’re see what as We actually the the benefits delineates us can what of to Absolute spend a is really funding. of hardware It you software? somewhat And with the

who is and so for to continue customers funding flexibility of And that looking use take are advantage there to some Absolute.

so we’re it. way through And not all the

We are see a within healthy season. rate, busier education think I heading into the buying the months nice business. turning into But run it we again,

state. back it So, year the turning last see don’t to was staying where definitely don’t it we pre-pandemic growth either. the We it double-digit see in high

Mike Walkley

Great. Thanks. Take my question.

Operator

question. from Our go next your Needham. comes with question with Please Scott ahead Berg

Michael Rackers

Yes, taking everyone. Scott I’m Michael This is Rackers. for on Berg. Thanks for my question today.

with kind sales you of you the to success products? the Could one I guess when expect early more NetMotion, integration be maybe team and both the then integrated steps maybe next fully with of one me. the on bit color about, from quick Just you. talk Thank selling a it

Christy Wyatt

Sure. Hi Mike.

points path for, the I’ve think first three integration talked what see we’ve the on accomplished integration out we’ve laid the with the initially touch a of we where about already being, is which of product Persistence around sort the So platform. I first

The look data second being or think as solutions really but holistically to about that we to the at experience one, shouldn't on is top various risk. of being against how can that parts view common the a single can the a think integrate system, to to don't both the and different of bios, bottom, or we've holistically. one another of platform think so view a starts user really, of able talked action We sort from sort the we about need you touch risk, telemetry to being then the about and take of applications risk able coming the to different pieces that from the operating able sides of and have the console

have And the all so the a opportunity device influence that the device where rules applications enforceable influence step, set be can We invoke the the up do third We we and which that's action whole. how of different are the the you network. influence can of across really the to specific as behavior. will places or

We've a so flexibility terms is see how the I rules we've a and much engine – around And product of intelligence me. and we've enforcement to more one in kind next sort talked that quarter. be quite two to what of those and now. that particularly will year, announced the of data about kind the match for lot making so on. piece a go that you'll insights as data we we talked earlier talked and call pieces that while exciting milestones with The we broad we piece, that that been the lot right? strategy this about you'll a through of investments The start along have see roadmaps working we've us next data intelligence about interesting of the view And insights

one On being the data use interesting the I tell able think that to selling pieces of story. the team, is really to

we the now think I down telemetry years of path things that the But organized. lot unique the and the QX sales collect about structured device. thinking structure we and two we we of next intelligence had and health a we've We're year. the about how about lot of are to for a teams coming lot where talked talked year I've time posture were spending how into as now a this security see go So the we right up about –we've set the

been company if of to to And our really in very and and existing what is so between in to some our the turned We've tool presentations. AP now, – on some posture Absolute as a on it's these one in turned use visually organization, versus overview, not for in a on. customers. upcoming take customer device website new that's both as chance that's dimension the selling well that And use think sort data get investor demonstrate cases security can of compliance powerful and the introducing I that a of be the able you with your of look of to it'll at right the and the you to real or actually do And a starting where that see without. really data the device the status security the being time overall of has demonstrate modeling difference

Michael Rackers

you. Thank Great.

Operator

from Our next Kwan TD David from Securities. question comes

go you with question. ahead your So

David Kwan

significant Yes good fairly up guidance and the you've EBITDA of since you just tested seen afternoon. start the year. a obviously was curious, margin I bump

XX%, I think was it XX% initially.

Now guidance in anything we're and much the How the versus just your of markets increased impacting tight due some in the operating mid-XXs. revenue leverage say versus else? of impact turnover higher that to is labor activity the

Ron Fior

is obviously big it's we've The part revenues obviously. of the on down. mean, of it makes the I margin Well, a flowing also we've anybody That There's all It improving to continued harder invest it. gross difference, doubt been hiring than part that's no big sure been that. then to about hire been also we've the companies together throughout in spending fitting making money anticipated. has are we've But properly. year. the But

expect on XX% going more trips to to little like And to a things, that. like in for issues look we're as yet trend, also et a that. will thing. back margin. and are office, more on continue of also to East solid at and those gone to more We're so last become things T&E kind spend bit to we we are for cetera. quarter, normal Coast posture if going we upward going as be So have calls things more to then like and taking, That coming plus sales obviously, this to people we balanced, In the office and and out office our looking an that's we're EBITDA seems good make theoretically normal, starting the same the but we're efficiencies we're

David Kwan

your capital then a rate, there's Thanks, also on And kind on is in then helpful. have the question allocation. interest debt. share last on it just a question also guys and of of also at the an with And Ron. is a consideration lock in I allocation, to at with rate that's up NCIB debts you prior fixed generally well and believe one do part the variable as price, going it No, the capital rates and here, trying look you overall as what's as markets going

Ron Fior

We at is quarterly basis. rate, it do every on interest on the So adjusted we a look it quarter.

over, can interest this is in now and time that. look year and X% fact, it the over, for now shorter six is months quarterly, a of have loan periods We But to a it at right variable do yes, locking and things a we rate in right quarter. do rate next

And X.X, to $X.X million half going so roughly be, percentage of full year is – of be point a X.X% full and so a X.X. half that equivalent of change would on a the

makes that feel obviously things we to pretty handle can, point but time, at So we'll for look opportunities what see in sense. those this we comfortable

David Kwan

on where right just shares then that is you given consider share buyback would something now? guys And Excellent. a the are

Christy Wyatt

volatile the right It's look it very we know I do take think, I price. that market tempting have any at as now. the But as plans don't you is, a being share immediate when

as I up and forward think, go to and we on the driving the very right focused now much we're continuing wrap forward. year business invest

our So I would in immediate say future. nothing

David Kwan

for it Thanks. me. That's

Operator

question. And final our Capital from ahead question with Markets. BMO go your Moschopoulos Thanos today Please from comes

Unidentified Analyst

on Hi, it's Steven couple I Mickelson [ph] quick Thanos. a just questions. have for

how First from coming on that your international partner your of grow ARR initiatives growth, base? of is really the much to some

Christy Wyatt

question. It's great a

So you, Steven. thank

expansion that think well as I coming our sellers, investment as our both from with our of partners. direct it's

continuing international year We you'll capability our to invest are and theaters and partners selling our all and a to in, more strategic resellers. next with as us the direct even up out also into of the and go channels building see continuing we number build do and

EMEA. have was partners, within some we distribution, a of the earlier I a traditional more in think couple especially distribution announcements And new we quarter on part, so the made the

haven't of some too net did some opportunities And the distribution those of acquisition, around part so see And is piece of we talked the and some original carriers. about yet then agreements much we we their talked when motion opportunities. that all there about as of And carriers. we we is see that the of

from you're investments. believe year. like I'd from to we starting as of into And rewards some that us are of see the more to early those go see we So next going to to continue

Unidentified Analyst

hear. to in driving sort there Okay, any want good international you countries for the particular call verticals of the growth? out or to Are that

Christy Wyatt

we've I before there don't we're than think ones EMEA. spoken about in other doing quite new what any well is

active quite in are We UK.

about was One of this distribution in our and some announcements new Benelux. Dach earlier quarter

doing strong Latin little invest regions also been in a quite like are us be bit APAC in We continues Japan, for to has strong. starting and to America in more doing Australia, well we're always

organization, are because are in it we and focused a think would It we I we're to quite say quite theaters with. very focused. when we which global fact broad partners still in the sounds want So, into but we is about go going

see about us continue thoughtful to we next that quite you'll go think year. into the be I as So

Unidentified Analyst

that on final equity that into sounds now opportunities any And of public all appealing NetMotion, in the table? look that off that good. you're smaller like question Okay. is now, with ones maybe No, or are to that's markets, M&A the the year the guess tuck-in might just there I turbulence like is going right

Christy Wyatt

that for look tuck-ins or We're our I never, technical interesting whether there grow say our aqua a always never would now. but landscape or and really right interesting hires, at that's technology capability. partnerships us, think taking focus is don't I the

at Endpoint into cool investment always the we're and primarily right Access on we our looking, of within things the do one roadmap. now. as going is many Secure So portfolios increasing next year the so but both look There Secure

to plate I to much we quite our have kind of right so those we're now. doing our think, lot community bring a that, And on partner

never, say that's never vision I right now. not immediate but my So

Unidentified Analyst

No, That's that Thank for you. good. me. all sounds that

Operator

And turn question-and-answer back ladies and to Christy today's any that, I'd closing over concluding to we'll Wyatt be for floor like the gentlemen, remarks. with session.

Christy Wyatt

with rationale acquisition intelligence the call. participating secure growing market. saw can our leverage always unique resilient a platforms create to persistence today's A And a more our so, strategic endpoints all And you. Thank shared around doing in connect new, thank NetMotion in highly large the in you of to for and and that into year you way. we ago, we opportunity

seventh We're and we in access. and the now to through billion over in secure ecosystem out just with through million pleased. against hardware our we're the Thank a access believe into a a team of later started are core quarter goals now our our progress the performance. is we $XXX We the do We include well data so platform, channel that and very financial devices. our year customers we XX security build security On endpoint Persistence-as-a-Service proud that and solutions from platform, we're we very Application and half which per can what broke The products. delivered of uniquely to also we've embedded this offerings self-healing great ARR space straight and a is of I'm in much. or persistence And parallel, partners. platform self-healing our a And is continue our making. Here of the built mark Insights our that our deliver. unique delivering of you found to ability secure portfolio have of confident continue Rule through endpoint intelligence very

Operator

today's that end presentation. Ladies and we'll with gentlemen,

lines. You may disconnect your now

Absolute Software (ABST) 11 May 222022 Q3 Earnings call transcript