QUOT - Earnings call transcript Q2 2018 | Quotient Technology Inc.

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Operator

Welcome to the Second Quarter 2018 Quotient Earnings Conference Call.

During the call, all participants will be in a listen-only mode. After the presentation, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded and will be available for replay from the Investor Relations section of Quotient's website following this call. I will now turn the call over to Stacie Clements, Vice President of Investor Relations. Ms. begin. now may you Clements,

Stacie Clements

of Hello, everyone, call. remarks quarter earnings IR our today's welcome note that to section the Please on the are second corporate slides website. call XXXX available and our to on accompany

today call Steven remarks. our CFO. President Mir the available prepared Executive our Chairman, and On as are Fior, for well after CEO; and Ron Aamir, me with our Boal, and is here questions

These for you Before statements we full that note for success hear our third include consumer forward-looking begin, iQ of statements. our during this projections retailer the and will year data for solutions of forward-looking call, media company's CPG XXXX; regarding and solutions; the our please effectiveness quarter platform patterns; expanding and business, expectations generally. and its our Retailer the Ahalogy; our these of growth and as go-to-market investments as expectations well including in pricing; shopper business strategies regarding expected and its company's and partnerships of the the use expectations

Forward-looking the that statements of or as risks known uncertainties to unknown team and actual our cause materially. call management based faith of available the and good results at of are subject to beliefs this and and to on performances differ could time are information

the the of forward-looking otherwise. information, disclaim or reconciliation XXXX. whether a have May net in Additional identified future expenses, in are on to call our between that gross that, results and GAAP quarterly today's measures XX-Q measures with basis non-GAAP A exclude information issued margins result information turn exception note over financial in been slide the We on and on the with And the could found found the X, factors website. with release obligation new revenues, non-GAAP that financial in about Please statements, can press Mir. SEC result certain I'll report today loss, on company's update contained factors be as can expenses. press in be to operating today the and financial potentially our impact of a now any and risk posted discussed release filed adjusted deck and on to these Form events

Mir Aamir

and was $XX.X our representing and compared continues Stacie, solutions delivering XX% ago from Retailer to up with last great the combined year year XX% total everyone. to a Revenue at second media and drive XX% business end guidance. you, quarter, We revenue Thank of had million, already a growth of welcome, and the $XX.X high of our iQ a million. Adjusted EBITDA of data-driven revenue. over over

As spend We're profitable complete retailers CPGs consumers become growth very media, sales promotions, enables to of digital campaigns year our data, it's the to revenue, of time in and our marketing, we and We're results and increase larger have strong and these businesses relationships, industry. an believe social lay Quotient. successfully analytics, packaged revenue with digital brands to rate total overall integrated to digital Consumer convergence, strategy delivering strong Quotient growing them with and all. capturing The foundation recent are leveraging investment and accelerate developed key looking the this with saw services growth influencer and slice serve influencer and Ahalogy, promotions, revenue our to believe are media and to retailer of that further brands reach beneficial even we and digital drive uniquely percentage we've data reach reporting a we of capabilities. a of in billion goods best technology growth more for business, at by increasingly that which revenue our technology spend. our purchase growth accelerates. the sophisticated suite to inevitable on estimated in consumers as We our of companies and With we added $XXX an continue become solutions for acceleration strengthen even terms an X a or elements XXXX. marketing scale. relevant seeing intertwined,

possible lead for We than and a has unique to We target CPG shopper Retailer has retailers. of brands million. XX exclusive brands. continue Quotient over which and visitors now to over million because performance right verified platform for is vast on Media by data, iQ. marketing the and million consumers programs XXX we monthly All buyer mobile, Coupons.com transformational shoppers by registered leverage on spend changes more drive high have audience this powered of and XX

now this. supply rights. efficiency declined into were Retailer expected, partnerships as over and to strong, and iQ over the of up year, to media the Quotient Total Our majority and for XX% digital more digital coupon targeted XX% relationships Shopper as promotions plenty brands offline. print the Retailer integrate of believe coupons data growth initiated that of CPG been comprehensive to runway from paperless measurable all promotions sales platform. gives last invested this last continues for us also their as campaigns technology for coupons multiyear marketing spent transactions transactions Digital in XX%. transaction, which grew is budgets, the brands lift. year We digital are greater of to exceed foundation include on platform for for expanding paperless our platform still we added turn while demand to exclusive has

serving digital partners. in media on do across online analytics and digital by similar all data CPG on and Grocers we now seen are shopper and to expanded web enables the Southeastern working Facebook retailer's Google. manages with And can for they ad to the an targeted digital ads media, to in-store use exclusive delivery properties ads this We This with brands partnership Quotient data from and all creative to Retailer iQ marketing, the social shopper CPG June, deliver to which behavior media on Quotient. partner for our announced measurement. the as several In of

soon. Additionally, we partnerships, signed more to exclusive expect launch we for X retailers media which

retail also success with partners due to discussions more scaling our relationships. integrated expand already strong several in believe to technology. similarly is in business We our are media our approach our shopper We to

and of against includes add social premium creative influencer shopper In this verified fit list XXXX. very delivery to and work measurement. transparency and its shoppers a marks data, they analyzes the X,XXX Brands dynamic through Ahalogy practices third media measurement natural than proud June, media industry. marketing recommend Points of approach, with It our projected media And our In over that revenue is channels, Analytics the addition media growth. Points is roster platform turning high-performing with. marketing enhances are billion to paid the influencer while uses solutions, mobile Quotient exclusive authentic Group, to that year. brands its North through for to marketing to increasingly Ahalogy fraudulent We are our data Crisp to that reach a expanded content significantly seeing say deliver impressions. of media social marketing Influencer marketing, ability In leading launched platform, we we Group our North and annually as Instagram. reach continue relationships for its recently by rights. across solutions gave delivers more ensuring influencers. purchase campaigns and greatly leveraging I'm Ahalogy, influencer last channels of Ahalogy range $XX companies into content. QX, within to tapping influencer CPG expanded XXX% up was a our reach our tremendous party Ahalogy into Pinterest through would includes creative short added and retailer such capabilities. media, XX% to by marketing offering which oversight high

to a buys all in through X.Xx media and retail ad greatly and on our a organic ago. visits a average. about acquisitions, are Excluding revenue viewability of media Ahalogy that rates Crisp Brands on performance deliver. XX% increased seeing helped the store on quality up we XX% are with is by year $X average, This partners lift campaigns return seeing our from strong on spend,

revenue are strong decisions. close to the other In purchase for as well shoppers mid-to retail to are from when funnel, to revenue brands. promotion rapidly grow scale continued words, in specialty impacted of CPG shoppers CPG soft the the quarter, platform We year-over-year, promotions X% by making print, their brands seasonally also very grew Total at as time we in for digital becoming headwinds promotions. year second expected a lower reach in the

We in promotions, going increased annual engine CPGs growth XX% will year-over-year. into years. growth iQ our grew a healthy iQ, continue in Retailer budgets fiscal have already at some rate Retailer believe as new from their revenue However,

promotions in which they and dashboard analytics a that center to coupons own seen We've the for monitor operations, our XX,XXX is our optimize month. In from in make digital we measurement Additionally, clients time, near another promotions future made offers of and all provides We've them expect catalyst front brands be for growth Analytics, for campaigns changes lets Quotient targeted to real launch and also enabling and for to adoption, sales we measure the over analytics campaigns mid-flight. XXX with for Giving active July, reports efficiencies users dashboard teams. dashboard. trade to a brands valuable the the over running for straight need brands campaigns promotion strong also with sales tools their added ability delivering closed-loop revenue.

clients our second a bring million also component We pipeline more analytics Coupons.com. and the of with XX for than data. of of rich and - mobile component valuable a to leverage strong Brands is visitors functionality to half This valuable our continue new provides network a consumer XXXX. is which innovation and retailers to features monthly

campaigns as of drive We Coupons.com awareness such continue greater back-to-school. around themes promotional with to

ways marketing, using CPGs us, for the to unique all that them data work their Major of into more more strategic transform half digital well even have forming or more everything of of we've coupons, more media marketing spend and digital proud focus to is and We and our with CPGs than spend sales a effectiveness, our U.S. our paying the and and accomplished for we all save growing more solution of delivering hard so objectives and consumer We We're In far, to off. offerings efficiency households. partnerships ROI, already in-store other and digital from into and very data. data quickly our are CPG deeper CPG evolved to brands a In an features we items. company market digital on through marketing commerce data-driven I'm more moved digital grocery roll for years, bring will few $XXX digital out properties, marketing company consumer summary, adding a coupons to shoppers even to whether we've marketing. more in e-commerce. also billion help a integrated turning in increasingly segments and on annually retailers. fit targetable retailers, cover believe short interested very set higher from campaigns, expand

market. in before growth will our to towards opportunity talked shopper investment ready on of to opportunity ROI-based have Ron. I rate in revenue promotions, front capabilities of a based households. bring turn With of packages. half we and back the the data believe significant plan in up our packaged Through and us, into we and campaigns media relationships over In pricing. We're of into to further and the doing extend CPG solutions, the sets we've and getting the retail data one enormous never our XXXX. move - in to data the increase we plan relationships, call actual investment now platform the largest data purchase of packaged to past, reachable in seen technology, to go-to-market for XXXX XXX% in And now marketplace terms brands more data meaningfully about like step grow media U.S. we digital

Ronald Fior

$X.X and Mir, Total by We loss loss million promotions. and quarter, year. contingent GAAP the a Transactions or was flat costs, ERP value in and $X.X up the continued last XX% strong Adjusted $XX.X compared expense. over The QX loss to in up EBITDA, QX of revenues you, media XX% million, a in due quarter second and restructuring net changes over excludes growth net acquisition-related Retailer in primarily QX We charges, certain had QX were of in million, XXXX. XXXX. compensation everyone. Thank second quarter costs, which a second were QX escrowed GAAP million implementation year-on-year recorded to of welcome, iQ driven shares fair compared million stock-based net of consideration XXXX. was of $XX.X GAAP of in to quarter comp, stock-based $XXX

cash $XX.X of $XX into our year, summary, acquisition, Retailer X% Excluding very in for stock XX%, operations were investment used In netting was down promotions operations. revenue million, expenditures our we down generated just Ahalogy cash million, buyback specialty growth and $XX.X Revenues. $X.X cash and flow, flows investments strategic short-term cash QX last and came declines print from Net in from less a pleased anticipated performance and at in million. Free QX. the revenues, XX% $XX.X Drilling of quarter approximately quarter, from we the over revenue the of with for the iQ, our the second as mentioned, XX% in capital defined investments, we digital of million with with and million retail a respectively. up quarter. cash buyback acquisition, ended in program $XXX GAAP balance million

last over solutions, shopper and contribution Media Looking year, marketing. million, quarter revenue from on focus $XX.X increased media targeted reflecting increase XX% at our in the Crisp media. our was a

our quarter to revenue. XX% the of X XX%. combined XX% the last And engines. year-on-year an for average at has over and and Looking iQ over this quarterly accounted second growth Retailer combination in of shown our rate past grow year growth media approximately total quarters,

our continue customers. proportion Revenue at spend revenues. on iQ. year-on-year XX% in paperless from customers CPGs QX while grew more XX to their promotions top Looking top increasing our total of Retailer

media shopper across XXX% year customers opportunities include us driving network in half with advertising focused media the drivers our the on sites. grew compared all Crisp spend XX expanding top On their QX over year. and last last QMX, Growth to of and over in third-party our and marketing, first XXX% side,

sequentially. the Let's year a Digital representing decreased last $XXX XX% Retailer Total from from in quarter. transactions year were up quarter period transactions total transactions. seasonally second the look year print million, while of ago. from the a down from and at transactions, in second grew XX% transactions XX% iQ X% ago, XX% same QX,

our the a lower margin a of margin the continuing margin of as reflected our Moving to of expense in amortization down function QX gross XXXX, of charges, gross margin. greater margin, and XX.X% from proportion the which the QX and primarily excludes XXXX shift acquired promotions. Non-GAAP of which compensation changes a GAAP QX I product at assets, This Gross restructuring P&L. was from has in on second XXXX. This media, quarter gross in of to a product and of came and intangible XX.X% quarter generally XX.X%. in XX.X% was came revenues previously. in gross compares stock-based last mix described mix than

relationships, strategic balance gross enable investments data making retail solutions of Operating are Going revenues, will margin forward, with we drive the over expenses. in gross a multiyear the overall in margin however, more to dollars, services partnerships, media lower non-GAAP this resulting us and technology, year. more percentage

Non-GAAP of stock-based last $XXX,XXX expenses, contingent stock-based acquired Crisp operating costs, compensation, $XX.X shares year's XXXX expenses in prior both assets, operating were compared costs of million, down intangible restructuring and million GAAP in changes costs. operating of million $X.X quarter, $XXX,XXX second were $XX.X last XXXX the included full impact as to value fair and QX operating were excludes restructuring expenses consideration, Keep amortization the For costs QX escrowed acquisition-related in QX $XX.X QX charges, mind quarter of million implementation sequentially to of ERP $XX.X of and and and acquisition-related the in of million in absorbing compensation in and QX year expenses. versus XXXX. in in non-GAAP expense, which that our

greater quarter's in level, level XXXX, last Adjusted geographies. over expanding percentage. dollars points more came efforts operationally a from and of expenses. We EBITDA continue QX presence terms, efficiencies EBITDA quarter, significant costs the EBITDA. revenue combination a In down while or operating of across second X our growth flat XX% In of to were million $XX.X improvement from margin. XX% and percentage year's margin be up revenues in reflecting to non-GAAP and XX% our last at our slightly XX% in overall efficient adjusted Compared adjusted a operating last was in quarter,

on revenue cash. continue and our evolves, focus profitability growth, we As business to

coupled Last $XXX in margin a looking X-year plan. of and XXb-XX repurchased buyback operating $X.X open-window an revenue dollars As accelerates, we a EBITDA to of combination percentages In new for program stock up both common second million term. cost plan through million. we quarter, of shares growth Stock quarter, announced we and of XXbX-X efficiencies the XXX,XXX management, are expansion buyback. new a at and with longer continued stock total

Let's now talk guidance. about

of the For be million. in $XXX quarter million range revenue to expect third XXXX, we to the $XXX

million. opportunities $XX revenue be XXXX second Reflecting of expect year and the full in million $XX the EBITDA increasing range half year, the We adjusted are to of we the to see our in we guidance. momentum

EBITDA approximately expect We growth expected level. the of year range expense the for million in revenue approximately mix opportunity $XXX at while and a is managing impact the of revenue to longer or margin increasing midpoint revenues XX% million The as the to be range guidance of or midpoint. there reflective a now million of at and EBITDA over is shift, products full increasing growth EBITDA increased $XX We of to $XXX growth in million $XX Adjusted for see the operating in we XX% the proportion increasing. at XX% term with revenue XXXX is of up significant believe and investments the XXXX adjustment lower much XXXX. media

on Some the color guidance.

Ahalogy year, half weighted media. On revenue QX to this to seasonality to stronger approximately the back we contribute in due within more expect million side, $X of revenue in the

solutions momentum the Additionally, retail we're to investments revenue growth an basis from we to seeing organic on our expanded our in due expect and increase partners. further

we half do, impact we side, be on integration. have to We minimal accretive expect it in however, Ahalogy On on the expect as XXXX. the to focus EBITDA second

Additionally, a we XXXX. annualized undertaken QX our our since lower-cost year. put efficiencies to in strategy increasing media, the significantly, further recent have to will to additional XXXX despite growth. summary, headcount geographies move More support longer-term the foundation set to we've by we result are generate expect XXX strong growth revenue believe employees of significant place and the We for approximately for our In particularly been actions closer these robust to business customers savings guidance increasing opportunities. in our able in in half, second and

continue We expense thereby, improving ourselves continues and And shareholder we as to up to have for grow, focused dollars revenue be set on efficient EBITDA management. value. increasing margins,

Oppenheimer's This Boston forward quarter, in attending Investor We'll Dougherty for be we'll now Internet Operator? Annual Conference and in Communications to there. seeing the Technology, Minneapolis. We call & Conference the open you questions. look

Operator

Your from Markets. Mark ahead. Instructions] from go [Operator of Mahaney line the first Please comes question RBC Capital

Zachary Schwartzman

gross for is think should margins there, gross mentioned year. term Where in but some mentioned to these second business that what deceleration a you leverage be Thanks. guys. longer as margins? that Ron, had should you Hey, mix Schwartzman going This Zachary in prepared on the of the in half your Mark. EBITDA, continue remarks we see do about the you there changes? I see

Ronald Fior

year, And into far that as and at point for of we'll at get the that X probably talk QX, rest this of that as in year. time. So as XXXX further points X about we expect goes, a you this we'll decline to we to look

Zachary Schwartzman

growth have out acquisition? Do share I their CPG? Ahalogy more you shined to that one data platform, influencer points make specific, the of guys were any data And for when acquisition. uplifts really you. what Thanks. the you terms Thank you guess, from And to looking through to revenue marketing Ahalogy specifically Okay. on historical in

Mir Aamir

good for that us a Sure, are and attractive enables see brands, standpoint. results an And which Zach. about it's points number That's the Ahalogy have of very It's in ROI reasons for future. from talk that, will for of Mir. the one you there We do Ahalogy.

and and influencer other consumers impact very is going core on and was marketing component sales of The that a significant. its forward, one, obviously, is digital very, very marketing

Zachary Schwartzman

Thanks, Mir. Thanks, Ron.

Operator

line the Jason comes go question Please of from next from Helfstein ahead. Your Oppenheimer.

Jason Helfstein

they Thanks. Three, quick. but pretty should be

first you digital such a year-over-year more Desk quarter? did side like? as hearing First you a next the margin? slow and to number what quarter The and packaged I that the since look the to what the don't platforms doing just iQ And are campaigns. media do aggregate generally toward more, then manage within basis more Retailer Trade as second trying And marketing why business? Amazon mentioned that second, gross position a to legacy on we Thanks. are company in next-generation relative way, one, packaged an three, mean, And to to see company it campaign of the the we're

Mir Aamir

go sequence me let Ron order iQ and question. in the Retailer Jason, reverse quarterly question, then here, answer can

the strong and in So and you're Look, and audience-targeting what to position allows are doing have world, trend the media, these of digital integrated an company? front that audiences the with for overall or that having efficiency, that be the sold towards doing that analytics There sales, in of other interpreting driven to by end, are measurement right converged that a be right, sold the are we accurately. from I digital XX-plus back marketing that Do promotions of have on for might end already market think off-line standpoint, influenced we are data in about it is for efficient right? very and to some to it actually are for delivery in these and in campaigns? online, very terms in actual working the percent we few groceries loop, but sales - which want full percent you terms market and the of doing That - players of digitally. the talk groceries towards

Steven Boal

Sure. It's Steven.

we've ROI-based we're about packaging the talked So about in pricing, and talking past together.

can what and specifically in will explain certain look me like So cases. let that

know digital marketing. know, in spend a billions tens So all we of dollars we of CPGs as year

$X analytics - our you're is a if our But and brought data hypotheticals. I'm we that to of clients what and means to promotions, $XX if million that and on we'll able and And drive $X you're data spending up together so for and million with in promotions, your media package data, use it's higher. ROI we're neutral together $XX unified our your to and platform, our together spending or going million in clients, have take media media spending or so measurement, media platform million a promotions, $XX you're do net saying, of shift synthesized to elsewhere or approach for our targeting data million to to now platform also and

And we brought our that which Crisp media Mobile we've together Ahalogy partners so when their we those with capabilities we CPGs with onto built platform of got, all retailers and allow larger many packaging, and not their platform, and board, about bringing to now mean all out now shift the promotion we've with talk well. their to of things spend, budget, parts our of both them are the the exclusive, as media our our were broader retail on that spend, that

more growth deliver a dollars revenue to a so together, prepared ability platform, more analytics on and bring basis. revenue our to those those as of about for effects. This package, of support And media to why, Mir's you heard remarks, shifting talk is go-forward you one accelerating really in the ramp can which our him us rates is and promotions and to look

Mir Aamir

Ron, talking you were about...

Ronald Fior

Yes.

and think CPG between bigger a our things had really see much quarter seasonality hitting flush QX they not the that is of there's And impact their customers to out And were also. there's thing additional quarter. this the seemed the the an that QX. that occurs you run have an remember this fact occurred we number end, of first at year the again the So on budgets. at RiQ, that last year-end, to that have we a and year-end. that of of fiscal that And then one was - That second did time this at budget at fiscal the is impact the have we often

Jason Helfstein

Okay. Thank you.

Ronald Fior

one other way have point to - than I continue situation remember have supply. would demand more where is we also the to we that actually,

send more can a we more. lot out We'll So there. get

Operator

Your from of next comes William Ralph go Schackart question ahead. the Please Blair. from line

Ralph Schackart

afternoon. Good

then give the market EBITDA, the you mix quantification maybe those perspective bigger us and lower-margin some outlook? on which X obviously, On opportunity some had the that out you you revised larger a outlook about but impact to spend on talked Can media shift of the called revised investments. or

Mir Aamir

scenario. Ralph, Mir. that a few factors There's this is going into

One and data retailer talking continue of more of working fueling that really we're media of combined And of in relationship about business. we making what need partnerships. enable the and and to that. we're in to is do that's them We investments promotions the terms growth well, a packaged

I that to this lean effect I we but as back the it's right in do rate for growth us that time further only to in think and not that the into so of can That's XXXX, our mentioned. accelerate that. year half one in

the mix together, that that platform accentuates somewhat, in of of effect to of operational the You Steven and will what When comes that shift of will And more we that not packaged growth media in anticipate see into some margin significant getting. an impact going on we But this and we need quarter that. scale but be capabilities, is then data are And this mentioned has then - then the leverages we we XXXX. on other from gross only that X year all will third the make again, in - terms effect we're solutions. on making earlier that is EBITDA all P&L. side getting the amount investments the getting that the

Ralph Schackart

of the will any Why of you added getting is sort of and makes capabilities now be maybe those right the just time could. that helpful. matter right on of a that really platform then perspective perspective, Okay. if And the to and investments? altogether, accelerate sort some sort Was sense? just Or it

Mir Aamir

media some how are to of being and results, on way. terms you the A be looking marketplace. launch retailers and there's demand in revenues are mentioned soon signed seeing rose lot my soon discussions partnerships. seeing very deep good We saw to in very sort some exclusive things good in I quarter And we've media remarks implemented, are already of of launched, we in - up two. very in several more and the be and

we accelerate think revenue that of possible given the that, time. feel is sure and as our that So as take right quickly growth we to now we make even want more, advantage and we rate

Ronald Fior

one Let well. as of color me add on there just bit

bundling just bring platforms promotions year-over-year. we and spend. look which midpoint, And It's and to our grew client, we'll in at calling the - headwinds, We've in if for your us place there's that to XX% about our at can and over tailwinds dollars our faster. - the to then it other a XX% that the got you rate we're XXXX, fact have dollars about at now declining shift expand to just of digital. capability measurement. XX% shift like of historically at about are market, handle increase sorry, taking faster we looks revenues XX% a the them. and together to We by in us, year-over-year. the we've business, net the media that's no change that on you the going So In in XXXX, got There's ROI some analytics, say to gives platform pieces grew packaging targeting and

businesses XX% rate rate. this a math straight growth something and in 'XX decelerating this without So businesses And the a spreadsheet Again, in and continued our growth growth the and is over alone straight growth math, like alone, just in continued XX% rate XX% is on reduction, us math the XXXX. accelerations, right? math. so puts growth of

it. demand, faster. said, we able go something can grow if try and even to be capture be time it's And to now to would the accelerate do even do we to Mir And ahead time the that further, that to as and see and so

Operator

of Your Frankel ahead. Please line Steven the comes next question Dougherty. from from go

Steven Frankel

of go material packaged any up could pipeline like those and maybe I'd to us of you set packaged point? to back concept have the for QX this between like year. of this you look end campaigns. the if And what did And now tell at the campaigns

Mir Aamir

early, robust. the We pipeline do pipeline, it's a now and Sure. looks have but very

we we large CPG, but and brand efficient spent or save in sort the and examples, it a overall offering this solution some your media can't is - As much you costs manager a to names of digital. way. dollars, work a share is but that brand real imagine, And media can to manager you right, your a take to working I for promotions, working in on efficiently helps more the put dollars it that asking

get You course, and it, that already the We've we that of And to lot for expect in and deliver marketplace so that. tested a execute of takers on. on then, right?

bit theory in trend of that's the overall, essence and a of So But the of just a is this sort marketplace. it.

you, be side, Especially of lot or I it's we the attention. Now in we're in the look have what how could market the driven like or purchase to this specific media world, or already spend to pipes or - marketing using special it that trend promotion call targeting retailers, on to to whole action e-commerce a a marketing media this CPG marketplace of creating terms way the a actual this but taking of getting is that can't understands where through this. for buy notion trend And in-store in which now. data and happening. revenues coupon are take names up

and accelerating right that. playing into we're it So

Steven Frankel

packaged back is strategy this ago, of thought outstripping your go you let's seemed essence, close campaigns supply, way materially improve a And it's Okay. pricing what the saying and fine-tuning it notion this around that was like in more to demand and keeps to gap. necessary try holistic of to you you're, now to Are is quarters couple inventory? ROI-based approach that

Steven Boal

same all actually part of the It's strategy. No.

So market And proposals ROI-based the get into because about intentions too now with talk that all a packaging can about are together are. fruition, more coming our these things wanted the what we little really much we to of clear bit pricing. those of first. We talked to never we about be

a beginning is And it The is but about the couple same the strategy. an genesis, so been planning situation annual of that had Remember, pricing XXXX. creating for quarters available. ago, really done was always already ROI-based we the inventory of talked that

to growth and we're late. those into why we capture we our starts making that can until rate like little and are fiscal if clients with to to that because that, all we're see really about making that's the now because numbers of step accelerating budgets - look of what QX, try most as a it's why now we our bit And investment into are the starting sure the really their investment we XXXX, and January too new all dramatically XXXX so until capture wait make but some when base. and see the increased client the for talking And starting increased we of increased won't fiscals now budgets,

Mir Aamir

to still is is the increasing towards component pricing work yes. us marketplace That accurate, a ROI supply. core of in very

Steven Frankel

of you just are kind about business today at And how parts Okay. up accelerate about. much are your business talking that's XX%? can what some acceleration a growing If maybe already the we good thoughts XX%, of

Steven Boal

Well, you of if the XX%... subtext that, what, again, at grew look at, media

Ronald Fior

XX%.

Steven Boal

the than grew promotions, more is using bigger promotions drive platform at media media our and Media and shift. XX%. dollars to much a accelerates XX%, to opportunity

So part the is but is business the of XX% growing is fastest at great, growing don't our get great, me XX%. XX% wrong,

Steven Frankel

And than again, opportunity an grow faster you growing at see it XX%, that? to but

Steven Boal

We the that of a the compared growing have such entire at part the opportunity been to smaller grow business see our the to business because rate of smaller. and declining, parts business is becoming have an high biggest

acceleration. in XXXX, again, that's - an over without again, of just off math, that's - and give straight-line into in without But 'XX. would forecasting without So growth history straight-lining acceleration, XX% a any rate just 'XX XX% you just over

Operator

Scott from Your ahead. next Davidson. Please D.A. the line McConnell from question comes of go

Scott McConnell

looking forward? us is? your you've So talk there's what going for about any Or had M&A more, you're what couple Maybe M&A acquisitions a if updates you strategy to an can to recently.

Mir Aamir

a the what strategy with X recent make few our well consistent the data. looking which And within and is you then media we've supplemented and companies we're well that sort promotions, quarters, and strategy of of integrated marketplace, capabilities saw and fit M&A in strategy in acquisition areas: our shared they're even in ago, go-to-market more Crisp us year connected ways. And Mobile - that acquire accelerate is the some and and Ahalogy. Sure. in helped and accelerate our for us past strategy then that

those to expect that able us get areas X and capabilities those supplement companies we of those can faster. looking fit to of in and set, X our similar for of our You grow capabilities, business types be and within our well - areas - to be market faster would to or X several help or platforms our

Scott McConnell

revenue the how a maximize versus transactions of on mean, I your, as number then And growth effort digital guys, about Okay. we think platform? to your should follow-up, the

Mir Aamir

campaign-driven. see, media, our and I working into that growth grow - more is comes ensure from and to is our transactions transactions. into overall we do within relationship is including think its as components, the primary goal things which can not years we've been is to but focus over make There relationship, that revenue necessarily or offline that revenue, budget transaction-driven; to is there, online, there various okay? is a but a transaction, translates obviously, sure How reduce which you its various that promotion, to

to budget we there's strategies we've continue grow out to to that revenue happen. more that to And various and strategies online. is of focus will and and Our various employ make employed get more offline

Steven Boal

example, platform, to and up are CPGs, ability use for spend we put that pursuing. and actively that's to of a media, And on their fine shift have in analytics point to drive to volume the data more of by way our order transaction just that to something media integrated

products, And the to our again, and revenue shift allow us more between flex revenue the platform. to more And our is focus capabilities growth. total as so Mir we to built said,

Operator

Analysis. from of from Berlin ahead. the Larry next Please Your go comes question First line

Larry Berlin

A things. couple of

be for ago, equate [indiscernible] that midpoint to the organic gave revenue acquisitions? number when First, when the - a XX% minute you growth, would what

Ronald Fior

Yes.

it. looked actually at we've So

out we you Crisp last - looking you you're guys this about actually. If that from numbers for talked number them to the growth at previously get you on got we XX%, and take XX%, the numbers for rate, and of out then expectations kind year going year, to same the the what take similar over

Larry Berlin

okay. Then next again. Okay, thing

beginning the On the can been And of adoption? from is any is you to CPG Is - still Or tell? or to early too - revenue what's give yet? the it it see is it ROI of pricing, kickback XX% how X% metric in terms companies?

Mir Aamir

get a two been give CPG one. revenue what the adoption are current. on. percentage there departments organizations. in and revenue, within from good. look, to percentage happen a very, across Not in different number departments but very CPGs various before at and slowly already They approval - organizations, large only things such cycles, so very, the these of annual of has The mentioned, Steven for that to like we CPGs, Number move is of And are response happens

starting large we brands, to we all that So starting have number with that's okay? as we're to right processes, a commit going ROI-based have those have they through right? number do last we of larger always expect onto mentioned And time, being, a what caveat of of And to to pricing, on, the get more CPGs, than their happen. now,

understandably, Now happen. going we to it and are may anticipate working be cycles, in companies that a to would but these bit continue more liked, slowly than that's largely have annual we

Larry Berlin

everybody Quickly, Great. this shopping, and at as opportunity grocery Last and more me. for more an Or look you do provide delivery that that Amazon how adopts one online guys for else you? and does movement? Walmart

Mir Aamir

- There's increasing. right, of a happening, in online in buying and store, whole online most this delivery it movement delivery. picking of groceries home it's But buying, versus also whether up is home

it's us. we All solved, really of influencing is - online buy any very buy to easier online, online shifts this. online good for them than so of us. have very exciting. very really the actually to volume helpful digitally problem that digitally consumers helps is to We've trend If much for of influencing their the harder solved it that problem It's offline,

Mir Aamir

and We're from us XXXX finish expect today. for up heard, in you joining XXXX. growth rate, so Thank XX% we far, a all as XX% you a great the to points basis growth having with XXX rate year revenue

momentum in to expect expand dollars margin this by forward our Now to EBITDA we grow XX%. more look about year even XXXX. also you. Thank EBITDA accelerating We and this

Operator

Thank conference your for you call. participation. concludes This today's

disconnect. now may You

Quotient Technology (QUOT) 31 Jul 182018 Q2 Earnings call transcript