ABST.TO - Earnings call transcript Q1 2023

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Operator

Good afternoon everyone and thank you for standing by. Welcome to the Absolute Software's Fiscal 2023 First Quarter Results Conference Call. All participants are in a listen-only mode. [Operator Instructions] I would also like to remind everyone that this conference call is being recorded today, November 8, 2022. I would now like to turn the floor over to your host Joo-Hun Kim, Vice President of Investor Relations. ahead. go Please

Joo-Hun Kim

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

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

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

Christy Wyatt

for QX XXXX fiscal today Software’s joining Absolute you, us everyone Thank to earnings call.

macroeconomic cover well and the part business, have customer as faring in three we will a themes. call, we're of results, made we how The our investments As amidst base, of today’s important as diversity concerns. the

adjusted margin growth delivered consistent of of In XX%. QX, XX% steady and First, we year-on-year our ARR EBITDA and results.

sector support of operating made investment We downtick call, responsible full later our EBITDA kickoff, Rule in we growth to for as to partly ARR fully year-on-year government for this sector go for endpoint healthy cases our model As as of discussed. to year seasonally the expanded motion. in XX sales as to increased quarter, growth we last the company we customer was headcount year, the Enterprise our fiscal strong expect both and a our Demand was security previously as a investments maintain be our which secure enterprise. being particularly percentage one-time quarter continued focused we slow despite and solutions as and well IT market for in the in for total revenue. to XX% shared margin. The continue a improve have use

results. was our also satisfaction execution on reflected customer solid Our

this GX.com for and XXXX Trust strengthen, Zero see We NPS score the report. recognized eleventh consecutive quarter the quarter. the the a continue consecutive second to another leader in also quarter in setting as as endpoint group management our fall by leader record We networking a were for report

sales going some We as market analysts, our report nice the feature of of industry both through business, Future as of also mentions our over from vertical channels Endpoint our Management’ go OEM XX% including and just diversity in saw a market diversity with ‘The to in the partners. well our Forrester’s [indiscernible]

nicely continues One is verticals to that grow of the healthcare.

highly As visibility, XX,XXX reporting, their we Their the sensitive regulated as device need an critical other and remain protect intellectual that the management device a and encryption large devices to endpoint healthy on ability the quarter, capabilities event compliance example was operational, in to across for more medical company they remediate and focus to endpoints. in tools and this as their ensuring data helped improve well than a environment. property

spoke yet extremely another to critical services for large workforce Another who remote work. of where the our improve taking four customer decrease Day, capabilities. customer advantage endpoint profile of organization was this and the of strong full Investor applications vertical services productivity quarter an secure the much professional Genpact, suite with resilience leverage, for us at risk our professional in hybrid saw Very large the absolute is global like we

they device They quarter many offering Like in new or of this available. to did our as education, the at pushed their identify high-single-digit, [ph]. growth in us, as team to seeing cases chain devices, X% to and services for across We the of as resilience U.S. to at and missing their them Chromebooks deals from assist market rates see our recovering end OEM district with effect school to are total those Chromebooks of XX,XXX some year. growing the remain lost some education shifting our segment or student device our they devices decrease professional stolen with leveraging the issues school a were turned more to view revenue. overall the ongoing saw we with education readily being mix of fleet manage our will supply [teens] partners, large that low-double-digit Chromebooks consistent Turning customers, continues help one year-on-year our percentage for PCs resulting some out were an in

as experienced in state seasonality, and with as local key especially of wins continued set saw Europe, Transportation While we opportunities, government well the summer in growing some in design especially Secure Logistics, several and segment. the Access happy strength with major We where are airlines,

solution portfolio in ensuring on deployment, underperforming its their with demand near the business for Secure and serving cloud-hosted included Access demands moment, responders of the lower areas those we the they With having in community. with in of as pursuit are our are remote Access one wins scale Staying solution, officers with initiatives, hybrid across mission Secure accelerated the cellular force time first seeing well assuring an to and this key to multi-county versus experience. access SA poor offering product in work our we are ZTNA self-healing Access for applications our critical known securely scale to company Secure ownership user coverage, ability and instant and ability as safety cost where able VPN rural to on-premise cloud a offering. the of a persistent another for remote in a can legacy our communicate best-in-class Secure UK with police replaced large of implement solution, Access enterprises One gives quickly our quarter our

delivery business of year, online. a OEM we was of overall acquired are to it as the part partners as Access be and Secure when NetMotion, as Cloud are small an While quickly driver bringing expect we SA this our cloud ARR a deployments material growing well SA efficient vehicle fiscal new

In also and to Telecom Micro US community. and addition support British Ingram we partner our portfolio, SA to growing added carrier growing OEM reseller for the

teams year I is in in accomplished QX the last to that QX, of We the team. ensuring us the ready end around against continue and call, for filling staffed we second plan. today to growth by to to quota investing that make carrying in set The want half. the discussed half execute investments discuss our new early at and in our we key in second positions were early theme R&D In up our fiscal first

to could that our We also ensure employees wanted kickoff. in-time company of be attend on board to most our

all in story results remainder the fully a to fiscal year, and train, kickoff powerful Team are will now QX company enabling of produce Absolute year. time baked the These Absolute entire costs was the on with spend our into revenue the one impact and another. to start Our continued

proven be new and that with with building companies meeting software Absolute, finally, passion welcomed a Marketing announced and Grace scale. promoted is seven to helping Information Jim Sherif record joining up industry I roots Hansen starts final new leader our Absolute's week, continue demand Officer high look Officer, Chief is after CFO on for SaaS focus we outstanding to exited teams. Mark for opportunity. new in for driving awareness this he unparalleled to Schoenfeld Matthew in us leadership and a we his for Alice a on go as we to has forward the Security veteran Lejeal Jim as market to Jim pursue year, knowledge for businesses to business you December business and pieces Mark us as Revenue our executive Officer, Samir a performance X. track announced known Chief team and CFO. financial last the time also quarter. As this Chief at Filling we and our And we will

conditions we steady demand seeing and we outlook are prospects we market In our financial to need confident of the While enterprise growing York, on closely and remain first for cyberattacks. business strategies, in quarter external and our growing threat diversity adopt within solutions, about and based our continue landscape, to last monitor that we resilient given the customers talked the we sophistication business. provided New

around us devices. Absolute’s the and self-healing unbreakable in With seeing of our the in connection the contributing are strategic investments than solutions customers we're made, to massive security front the our million XXX intelligent more impact XX,XXX that we've world embedded with opportunity

be balancing continues deliver to Our consistent, execution, to generation and value our shareholders. focus for growth profitability, steady cash

Before hand to Ron, him. sincere want it to I my gratitude express I over thanks to and

appreciated critical business. hand we in drive on as year for Interim our details this tremendous support I to conducted would Ron helping CFO more over in know, as With have we've As all played Ron has and that, earlier financials. CFO stepped his role you and it a a impact to the He's to our search. had like

Ron Fior

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

spend some first go fiscal model, outlook. time QX Access then the NetMotion impact over our On discuss results, the Secure call and will reviewing on today, currently financial our product XXXX I our business has the

Now, on to the QX results.

deferred for believe excludes year metric of as The and end requires relatively XXXX, year this are in comparisons we slowing XXXX. licenses balance Deal, term QX and previous more amortized the meaningful million of any that Secure to the of quarter to over we at Access year-over-year year's on-premise of a Access fiscal where XXXX. adjusted a treatment the QX growth fiscal the prior Adjusted tough QX contrast reminder, basis quarter result end perpetual ratability business. had the XX% endpoint adjusted QX accounting sales, continued and with revenue of our combined a the conversion term to the recognize base. XX.X sequentially some multi-year negative Absolute the Secure on the view a faced We contract transparent length, in in XX% XX% up accounting increase of and and on a which revenue. on the a ARR. fiscal secure reporting XX.X% see revenue in was macro slightly We Access At the over arrangements, the We higher up from IFRS didn't the revenue the compared Secure QX, a international purchase but large As Secure from of is of a provides comp subscription flat prior was impact an endpoint pressures ARR mix impact from approximately revenue, the on did agreement. value contracts term with Access. versus prior secure of impact XX IFRS on In had of signed XX% our seasonal the of portfolio small ARR

seen revenue recognition. As variability the resulted over in some have year, in of we this significant timing past the has

up grew the of example, not version Access, accounting experienced. the had prior million Over versus acquisition. SaaS the in ARR Secure and improvements of had quarter. logo our the and Endpoint grew we Secure time, and was as been in XX% model smoothness to year, prior expect million predictability For XX, return IFRS by Cloud year, revenue, new on-premises we net by continued it XX% strength retention. have as the XXX.X and would prior of of Enterprise primarily rate from dollar XX% we Unlike QX enterprise been continued Total by if revenue was all Absolute of is X% ARR SaaS growth September the is and grow impacted and help XX% traditional in and the XX% licenses, term complexities, Access came we prior related ARR quarter. amortized from versus XX% faster the XX% in in same versus product, than strength and versus The term in us the the acquisition the strong government, year XXXX, in in to growth QX X.X Absolute’s a contracts before ARR Secure and which growth Education QX. prior progress the in to best believe growth. indicator driven ARR XX% that

million, sequentially Secure customer. million, strong in as from sign quarter's flat delivery QX. prior large expect a relatively quarter. to some particular of QX customer a sequentially and year's product. continue up We Access retention from a of XXX% the mature. Net year's strategy dollar were of supply $X.X we education net due what customer in last $X.X to education XX such receive down large of prior in slightly saw life deals to saw million $X a well New XXX% sequentially, a flat other an in financial pushed retention Education the quarter. did million from a but and the despite very Secure enterprise and was of of small market out continues verticals purchases, transportation. cases are drag modestly new We do signings to acquisitions and Endpoint their strong dollar used included We laptop was ARR chain up strong strong is of as in deals go large typically X% last which the customer of new verticals education deal to these the focused of was in delays. saw to seeing logistics inability due from We legacy professional end some year-on-year, and activity down to and improve non-renewal

Chromebooks, our it a from per However, have are environment contributor a Chromebooks That number challenging is can than population to growing continue said, ARR believe been education. shifting we to still acquire means adapt going easier we near-term but new Chromebooks headwind lower creating now in school include growth to meaningful, mix ARR education our significantly, endpoint slower increased laptops. endpoint forward. more be also which attached of we are seeing but their The by has to this device to to boards

Moving hires on is result Adjusted XX%. increased year million decrease of kick-off, with and in and was or along prior marketing to a line. into from fully EBITDA now associated million QX made the basis throughout is headcount XX.X with margin margin approximately company from adjusted points numbers, the margin The the $X for costs, profitability QX QX quarter. quarter the in approximately for and a XXX that loaded of which sales extra of cost in EBITDA prior the are

new we hiring. brought people Looking have onboard expect forward, of two the past additional number we the already given quarters, modest over

expect as While the new be expenses fully hires. in to absorb we we up QX operating

large be pipelines of increasing of year, relatively said, the That effect expect are can in hires the growth half second necessary. we about of number by the the we Over with we coverage the this continue to XX% utilizing remains flat. in excited having fully to Fortune we're And conversations having the we reallocating levels fund desired historical strategic operating XXX internally and expenses our and more customers. believe and new more are resources QX. margin where Adjusted at gross

higher to begun now cloud moving costs. have We service the are public and incurring our

debt, in grew XXX our flow basis gross for mentioned, was basis our additional balance in since As points dividend. a see previously call, last investment and our cash XXX million resulting Concerning million to the XX.X over margin contraction we from XXX approximately servicing debt increased to time, expense of interest our XXX,XXX basis points. Operating from coupon QX. points XX may the operations and QX and short-term XX.X million versus quarter after last paying by cash

our against that strong To the to debt our end, debt the organically build from expectation profitable are made cash will [ph] we on to continuing balance confident a cash Given debt service opportunistically balance. our continue the balances we de-lever [$X as million] ability [ph]. to pay we our and while flow growth, continue [permit] and payment as down Friday, and pay sheet to of operations cash the continued in dividend the we

as many layoffs, noted Turning and about market etcetera impacting we are education are not our PC in the and to discussion inflation, shortages, Chromebooks. environment businesses, The macro guidance. immune of

And Access continues tight operating in However, given revenue. we'll activity the June a and ending and the line adjusted our base quarters, in a Secure hiring XXXX, other higher enterprise in in growth mix full sequential our hand the XX, recent to growth keeping increasing and of drive our the expenses. in leaving are The outlook total year with space, we EBITDA fiscal for unchanged. Access product the both revenue the be coming growth in our adjusted ARR Secure of

we term to saw seasonality last fluctuations impact we and driven QX in Secure Access. intra-quarter the year, fiscal quarter, be as of expect licenses year greater However, than by this and this fiscal multi-year

Looking at linearity, we are seeing half year the percentage the higher of slightly of a back the year XXXX. be than

write-down QX XXXX, is million down X.X from forward, $X.X we over difference will move going the IFRS the million forward September of As periods [$X.X anticipate of in reported and will deferred continue in future revenue in of remaining value was We numbers the immaterial XXXX. accounting year. fiscal quarterly The be we of million. deferred million] of approximately QX, [ph] the XXXX, write-down as our revenue X.X and adjusted end by QX between decline revenue fiscal fiscal the and to take

it have appreciate that Before of any support company remarkable back been the the call the and facets over greater in congratulations. has to products. company by say its wanted the glad With no time in is we impressed even operator, right I and the the for I in people especially questions. have coming made success turn I open progress the and to to I to business on doubt we're the and Operator? find your years. that, track all

Operator

And Thank Genuity. Doug first go you. the Canaccord question from will [Operator Taylor with Please be Instructions] ahead.

Doug Taylor

of in whether the evening. that the New the over during call growth. from Day revenue is gives you'd XX% started to a what noted, these spoke you the relevant question Last Yes, exit still in – this year guidance XX% York, a about that little QX closer your you you and and confidence as you QX levels the specifically rate thank good pace Investor my course target that below is acceleration of and you gives so year? in XX%, to run market expectation XX% exit

Ron Fior

Yes, okay.

there's things growth XX% number is that that we've up year-on-year and the growth of been very quarter having that think you enterprise side XX%. last think I a that with we in ARR So, strong Number one about. was from saw and

We that renewal seeing impacts. very that also Secure are And large a would right IFRS QX the the actually pipeline now. and growing of at about we're area QX also looking remind Access I And quarters. talked you I actually are

that back-end makes linearity there's And towards So, the big big difference. of a that year.

you thing in expect aware, new group hired very improving we've sales of that's are happening as and a those. quickly productivity with we board and is, QX The those are on QX lot in scaling people other coming up and they're people the and into

at yes, meaningful see So, the it we answer to this get stage, a still to as XX%.

Doug Taylor

on Okay. that. display but the at at hiring team. at roles that to you're following C-suite other the very was the management the talked looking mean the management company on any Investor Are executive hires? there expanded – the on about or Day. I Thanks overall, your level that for much recent the you've executive you for level, fill I

Christy Wyatt

I say, immediately. none Hi, would Doug.

of to us had I think Samir, security, think December. addition I addition IT in and our last will definitely of and of think I the between some team. kind a that about welcome joining then We little new year Samir the we CMO be Jim and is transitions about talked course spoke a bit so

always say is before, said team So, a never. of never in progress. I work I sort A

put team they've about great the I how together this think really year. and into together we coming come we've feel

Doug Taylor

Thank and that the forward meeting Ron to financials you. Jim. note, stewardship look Well, thank on for over Okay. I'll

Ron Fior

you. Thank

Doug Taylor

it if in partners can Secure guidance, confidence business you're in yours? that help have help but just then, but that could to modeling with macro well, Christy or would into mix core. you that to that's Access, as imagine as you you're acknowledging have the as this. higher Obviously, not but you Wondering that contractual going higher visibility I newer your of maintaining And expecting get level a impacts And a Maybe little you Secure which probably you Access that guys. certainly accelerate? anything be, under seeing, much something you're there's had you're add assumption in Ron, you've of while now, question there's give us visibility making the this it that for said to channel is a as new us our with as for to

Christy Wyatt

I in. and Ron jump start Sure. certainly can can then

I on that which touched visibility through ones, of most given couple is and think that and sort talked IFRS XX see the impact it about a recurring on is Ron that how we big is we importantly already probably trending the have the of first have and the we year. business,

of see and And year. are in quarters IFRS some so, the these given that we the start sort the of impact of of that large second renewal to seasonally XX lightning half

So, first the that's piece.

as that past organization see of talked really a second number in pipeline coming and transition the the of The We've the selling the SA pipeline. But continues changes large I wins piece across into think weeks both to international. in we've about, of through over design behind the business talked the couple quarter. of is, drive focus America kind We've to the some and moving the look we North seeing about of coverage result we're deals really kinds made strong. the

capacity the very over we two kind on the feel but think so, we the pipeline also I good that's new it. building about behind board past quarters, just not of that And brought

Doug Taylor

Got it.

wondering if force guess you. B technology spending, enterprise ultimately deceleration? just growth I if So, do to were you that whether of see would it's business, to if what ServiceNow B, as follow-up like then Thank push through companies, about kind seen you've forbid And you sure big Okay. you a ultimately you talk or outs sales haven't a or thought of talk impact at if maybe did Plan quarters enterprise could could maybe maybe we've etcetera? this Plan end I'm a to that, some

Christy Wyatt

in on sort close going We market the coverage, keep what's around we think bit this in a very talked I the eye pipeline, of New on, And a York. little us. Sure. the about

start about us set we've thing unique while if the I balanced hiring a see make on top we front. think of we the that's shift of profitability one operating quite under kind this, sort line, to for on the that things is decisions, because been of certainly right model quite now

us into So, hiring coming growth really in to through That we have we the for we set second QX around kind and we that did – half. came, keep us. coming make QX of the QX as up into market of some investments really said, as have slowed sort we an eye on

And what so, committed very the I and us very sort think tracking expect would do those that we're of of We're target Rule to, fiscal operationally, hitting there. sort as to get to you of both know closely. very, we year XX need to on

Doug Taylor

it. margin Yeah. you within to and plenty to that. got Got me sense Makes work

you So, look for questions. the it. forward to Thank following

Christy Wyatt

Thank you.

Operator

And Moschopoulos from next from is Markets. the Thanos question BMO Please ahead. Capital go

Thanos Moschopoulos

so Hi, mix out Chromebook on I you macro, called the mean, good maybe up just to Christy, the it shift. close afternoon.

of lengths. out Anything deals, you're called I level not or shortening a that as up cycles, mean or this far not required maybe You seeing contract as sales bit yet? change else for stage? any regard of sign in in at

Christy Wyatt

feel the building this kind as I quarter before, into Not think for with of half. very second said coverage we comfortable what's the yet. I we came And and

seen we've effect think don't I So, of that. the

the side, been driven has I think by on availability. it really education

the not stay are growth that’s of sort and Chromebooks within number more a see those of take PCs certain number can Chromebooks, see and hands the accounts of to we than get is them take we if but – So, they available, maintain the happening I growth the – sort amount to devices think they of that steady. these seat on opportunity they're their of where have seat continues

we've that close eye into year. keeping but nothing we're of a the said before, it the end seen as we as So, yet, I go on

Thanos Moschopoulos

we of and obviously Okay. that tailwind is Canadian moves, Just it a decline OpEx terms about how recent how of about been the as margins? of there’s some And do the dollar? we think currency so much think in then

Ron Fior

are plan, So, now, of primarily in these into to our which and have Right unfortunately, point very not currency favorable earlier to nearly fact not speculate year, Difficulty] impact. We been our becomes is did goal U.S. positive at in [Technical as then becomes is it we're We exposures some our now, the negative on right. it's the obviously pretty as could Canada some actually it compared in product U.K. hedge impact everybody in a that And against favorable, U.S. the could time a have shape. in dollars, sell things. else. too good if Obviously, dollar our but strong but

otherwise, in but pretty – shape. we're So, good

Christy Wyatt

Yes.

I folks, growth thing growth. that, growth of other we’ve about lot key talked of remind The parts one just the our our would guess, I on top strategy that being and a is strategy of international

happening within America. our our sales is One actually of market North for the reasons of much why that's such interesting area still us is so because and

that And balances bit, see across the some that accounts. I we of currency a think think I swing out little so, customer

Thanos Moschopoulos

great. there of then FedRAMP last the in terms remind for me for one us is, on And the timings update that? Okay, just any certification,

Christy Wyatt

more We're office. FedRAMP from awaiting, some comeback still the a detailed

announce on that to new anything have don't today. I yet So,

Thanos Moschopoulos

the I’ll Thanks. pass line. Okay.

Operator

Berg Please And Thank next question Needham. from the you. Scott from is ahead. go

Scott Berg

side and for [ph] the taking are more harder] with more Congrats on sales resilient thanks you you XXX partially everyone. I as by companies comment driven a having the that's first on my Hi, follow-up questions. assume have today, I conversations quarter business Ron two, Fortune to Access conversations, [new are side Is which as it more the functionality those or they really focused the or Secure on? force, at both? look of potentially the but made,

Christy Wyatt

I'm risk think to continue of Access side, to think Secure it and through. of the That's sort I great trying remote on a workforce. I see Hi, the Scott. question organizations guess, we manage

of be the strategy. had interesting organizations hybrid they sort are, tend we workforce some So, multinational to de-risking about large their talked design remote we've of call wins the and on and typically who

And so, that of the remains a really important part conversation.

all I get but anywhere think think that is protection shoring up because their under most of broadly, and on that coverage connected Secure across sure to sort really into the to, to make up of work amount on up, coming new Endpoint, the and position kind of in the as of they cases, side they I the in that it as And have even sort conversation, is, protection they're that already they about, from the are pressure, with organization. many hooking budgets a sort of have. of projects spin them ramp wanting going IT of security are not many more

where it's of say some And the the so, some and at of costs the of those helps manager, additional self-healing can it you we resiliency because if like the side look that having in products. them, of another they automate quotes headcount the on past, sort IT IT we've offset given

fits their So, sort do result think a kind that the of within it with they're strategy of as [indiscernible] pressure own their within more I less of organizations.

Scott Berg

That Christy, or perspective, is follow-up with sales sales more a the had differently call about maybe it new Matthew’s organization? CF or but starting change? over more inject I even than promotion it how revolution, this the your is that the you CRO, change years, leadership of helpful. And in then couple talked you've me, the excuse opportunity last an from we departure, does of the this Is change any should in with at evolution internal change look some playbook,

Christy Wyatt

of macro into the happen. how around I market broadly. of we departure, most things wouldn't we're Clearly, changes changes Matthew's were go to large or thinking say timing but about there's sort these disappointed any into

his truly he well-established with I with as relationships [Endel] He organization. or does direct-to-customer as is with incredibly a has a for nobody roles the companies past also understands Mark has company with OEM he's and in close the within within [ph] the leader the been large business, who our the building well. partners, other as held a but fostered well long-time. There's think roles

don't you'll I transition think shifts quickly. So, relatively to see massive us. were We from any do able the

We of I are folks days X position. down. already we executing so XX their Mark done roles announced filled, everybody's think people on next within as consolidation of announcing, and his the already now that brought week within He focused the all had quarter. had in roles to, the had up locked the of installed happened level we within are teams kind organization some against to in and

Scott Berg

Congrats Great. for and taking again questions. my thanks

Christy Wyatt

Scott. Thanks,

Operator

question TD go Securities. Kwan from And is next Please the from David ahead.

David Kwan

talk top to I a the extent dollar? relates stronger the more were impacted by the was the guess it afternoon. particularly about to revenues curious Wanted FX, Good to negatively bit line. as what I U.S.

Ron Fior

Canada, actually on The primarily and biggest they're our dollars. thing we we side, but Well, obviously impacted is other those the two in – exposure have not U.S. too, they're the have because have that the pieces. U.K. sell countries with largest expense we is the particular actually we in some are and in employees that – expense actually the in

David Kwan

Europe, dollars when selling are selling Yeah, but like you like how U.S. into in about you're there?

Ron Fior

Yes.

David Kwan

Okay.

So, U.S. is in vast charged dollars your the majority then? revenue of

Christy Wyatt

Correct.

Ron Fior

Correct.

David Kwan

particular the last low guess I then over of on reason And this quarter the pretty but dropped any related that? Okay. international been a note, ARR, for XXs, kind the strong year, XX%, into growth, that's it XX%

Ron Fior

just It's anything. was there think timing don't of deals. I

Christy Wyatt

summer That a typically And Yes, I little the has think about Access. a bit soft reporter is historically especially more that in we would say sales with Secure Europe, been for us. direct talked a I quarter.

the months internationally. have broadly, so, you when down bit of And of August. [ph] more do a little to projects But sort running think summer the seeing anything super don't slow excited aren't we're [POCs] in I about those and hit month folks a tendency

continue on more We traction our international OEM get partners investing to great ramping up reach. with in and

in with quite well from done still we're but I because of base. past relatively small So, think a coming off couple we – years, the are we've coming a international of

So, more there. see do to us continue think you'll I

David Kwan

Thanks. my And last question. just

North Europe As you to you difficult and more it and versus finding what how Europe Are environment international other relates American areas regions? seeing finding in in America? the in macro, it North are versus particular you're

Christy Wyatt

I we is Ron what sort of been the, edges watching on contract term early that I'd that Well things the around some we've think said talked call of, on. one

but on our space touched North impact I sort us, the We're demand perspective, I've on of bigger quarter-over-quarter our don't for I education Europe I partners they're of American and on, very direct summer America months, more as direct SAPs our for different entrenched North and within kind seen with a outside of think a we big in said, the difference from between a that North markets and know right. that business. American selling much

conclusions that I I that, So, that. don't headlines pull outside have any big of know out of to or

David Kwan

Thanks. right. All

Christy Wyatt

David. Thanks,

Operator

answer and Ladies to our remarks. like gentlemen, to over question Christy I and would this conference back session. concludes turn the closing for Wyatt any

Christy Wyatt

want that In them. and the company revenue, into time, year user million for XX delivering joining I more today. us marks leading grown to all we've XXX you month recurring XX,XXX keep start Absolute. than And us a fifth devices than with my of in again on that Security customers, Software million you. end more Thank for to depend This thank

and security profitability, be large in critical value joining to are on resilient industry. growing customers unique continues growth and us. well to you in steady shareholders. our intelligent market for our deliver path solutions, consistent to generation our and serving Our at balancing positioned a this time for again all focused execution, cash With self-healing success we Thank

Operator

Thank now today's The for you conference concluded. attending has presentation.

now may You disconnect.

Absolute Software (ABST) 11 Nov 222023 Q1 Earnings call transcript