MODN - Earnings call transcript Q1 2020

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Operator

Greetings and welcome to Model N, First Quarter 2020 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator instructions] Please note, this conference is being recorded.

I would now like to turn the conference over to your host, David Barter, Chief Financial Officer. Mr. begin. may you Barter,

David Barter

Financial to Chief fiscal call on year is Jason N's XXXX. Welcome the me first today Officer. call December Model quarter This is Chief Model Barter, of XXXX, Model David and the afternoon. with for on N's earnings Blessing, N's XX, Officer Executive Good which ended

primary call this of fiscal posted on is to earnings release call being information first Our is and regarding press today's full for was our quarter market issued second purpose webcast. you provide performance year The website quarter and is financial after where of our close our XXXX. our outlook and

any include most relied Commentary disclaim Actual to our update of We expectations forward-looking our in results date. statements. XX-K SEC. of differ forward-looking outlook. as These based upon the views and as materially. views may made call subsequent obligation statements not Please should refer as filed and with on today recent may representing statements factors be or the forward-looking to on any this are Form management's current risk any

is as be In in measures. These in earnings non-GAAP metrics should today's GAAP on are non-GAAP addition nearest discuss website. metrics financial available from which addition, financial our release or included measures the to, Reconciliations call during non-GAAP in for of the we will a issued not isolation results. substitute considered GAAP to today, the

webcast replay quarter website reports the periodic year this release, investor.modeln.com I call. XXXX SEC to encourage to access Investor you fiscal our first our at visit Relations and of press

financial in year be all XXXX. stated, in comparisons otherwise will results this fiscal to our unless call Finally,

turn over to that, let the call With me Jason.

Jason Blessing

the based for Total $XX.X today. pleased QX everyone a quarters. our you million, afternoon am on increase results million, I five we XXXX Good year. quarter We strong to of that XX% an momentum exceeded last with last and us our performance X% report thank David. was revenue our that delivered over over and execution past momentum fiscal you, the year revenue began on joining over year. for Thank was increase built guide. $XX.X subscription And that

our vertical XX results company. Model continuing impact in my The months improving of on results the SaaS positive as our call commitment delivering CEO a focus also of evolution ago strategic I levels something and as the growth Our to committed highlight demonstrate first earnings to profitability, N. of

to shareholders that focused better is would I are like continued a of these support. N important for constituents and more N Model thank a employees customers, Model We each and proving for their

continues in to strategy XXXX As continued improvement mature. I go-to-market we of profitability, a I look particularly in ahead, and In as I tremendous have our expect opportunity to front that growth continue see feel our us. to

performance, our help My compliance. growth, leadership confidence experienced sales the also an that but customers have line the products knowledge momentum reflects only team profitability place, mission not critical that we and top and entering past drive our year in

global year the SaaS a to strength that projects. across Excellence of well-established successful company, number entering a experience deliver Center our budget. of important also finally, is our our services proven with of and to It is note is which on professional delivery continues team, Transition gained time on complex And projects

we over total new last company, material market to Sales bookings the vertical SaaS of the still part in we leading though early have of consistently characteristics are show starting are quarters. a the to several of stages been Even scaling the customers a company.

of applications it average the the per a over several change last X.X We and our the more company. Xx cloud of cloud, using represents also important of This crossed increase of recently rate than the years more customer. milestone than the in at XX% an having helps customers illustrate

Equally is interesting another businesses allows This to that that mix our our total strategy large cloud global point nicely which part demonstrates economically market. is root. is of us delivery also mid-sized proof our our taking note, between to and enterprises, model access customer balanced a broad

customer base is key our go-to-market of channels. We of to our significant, opportunity and vibrant of strategy. markets customer two into breadth expand and Selling a complexity element our usage Cloud is Revenue the sales the serve given

unify generics in first single and onto a a with specialty expanded that Model leading For wanted we the pharmaceutical Revenue N’s and on our solution relationship standardize to example, past company branded Cloud. quarter acquisitions

the to a to provide lower performance to Similar growth our government transition ownership. to agility total all quickly Gilead required The customers, the platform adapt channels, enjoying regulations. deliver of and other cost across cloud new Sciences will while to multiple our and scalability

Now like that to stories highlight recently went on were Revenue share live as I would customers Cloud about quarter. of some another the Go-lives

a $XX billion is pioneer our management on-premise modern revenue wanted Biogen, neuroscience transition platform. improved and in cloud This capabilities first platform company global performance. The their applications to with from that a completed our

see They also lower allow sales so that total today's is first cycle I engaged Model that to compliant yet project environment. of after ownership, stay also them solution it fluid still joining their in the wanted in satisfying regulatory their N, a would particularly cost Biogen Go-live. to is

successful provides transitioned Nordisk, and also set Cloud. to successfully core markets that globally also Novo a that also a across tool Novo deployed now $XX their is billion in this Revenue of pleased company to our organization. and I recognized their healthcare project to innovator completion The stay am modern allows has compliant a announce

as healthcare a to example supports compliance, support our products products how companies some of new growth the IT of great move strategies and This of the growth markets. they largest world. into the is project Our also provide the Novo in infrastructure their

designed the of on cloud number of unique to We outside also a are saw States. support of successful the Go-lives requirements products markets United that our

which at are to management a XXX homegrown Servier, and headquartered our million XX therapies therapies day price France is products ensure dispensed in each countries. is we to are application. example pharmaceutical a legacy quickly our our and patients door land agreements solution, One able This first at time. value replaced of global on opens over based live that it are to these how XXX administered Servier’s went example proper across global for the a deployment Servier great add over expand company price that which our the on and different is customer, different local

out recently also into products. project began management as commercial Finally the solutions of billion the tender a Mölnlycke custom Health the rolled medical global France of a of Model second phase lifecycle and and that a States Swedish management a N Care, Mölnlycke United point patchwork Germany their They project all of $X.X with U.K., and their modern is their in data. and our part replacing company contract business. deployment in The global gives contract the address and solutions pricing platform provide to cloud insight of will

the future in successful with expertise references having and a reflection we're services customers of capabilities success important as the our delivery go-lives and The value opportunities. deep our field in in is our high-tech, domain the sales will excellent our life-sciences get customers These solutions. serve using team, of from

the I am the rest of look I excited to forward as year.

stages scaling the call, As early vertical the I company. a great the building believe still and beginning at of SaaS I of we in are said

QX, that year. strong strong to positioned show we have are Our a well over results now quarters, the including past six

would to our to financial results on like guidance, turn call I David over David. the elaborate now our to and

David Barter

you, Thank Jason.

extended the profitability. Our strong evidence last further shared SaaS year of results performance you improved year for for and exceeded with fiscal progress, vertical as These profitability are the also quarter are results we all and quarter and first the XXXX delivered financial revenue fiscal we making while throughout growing scaling we outlook company, a delivering measures XXXX.

is X% our year healthy first a execution, lead sales subscription million. grew revenue The of quarter to the new $XX.X from revenue revenue million, reflects The XX% million. an direct ago. result of subscription which of for a increase $XX.X strong to Total $XX.X of outperformance growth

growth revenue in which million was quarter. subscription our by of decline offset our the $XX.X revenue $XX.X natural in highlighted for million. was a As call, on this services Professional maintenance partially contracts, resulted last

Now I'd to profitability. like to turn

executed generating and bottom commitment impacted quarter, team Our meaningfully over our the performance on reflecting to top-line in growth. the and well profitable focus our line,

first profit an million $XX.X revenue basis total services XX%, non was last Non-GAAP gross from increase professional year. revenue points for quarter was revenue, of Non-GAAP or GAAP for for subscription XX% of margin XXX the gross margin XX%. were gross

the XX.X%. non-GAAP net quarter a financial GAAP quarter $X.XX. first We first margin our for EBITDA very strong guidance we a million, of Adjusted executed $X.X All-in-all, for $X.X quarter representing results. per Non was in to profit of with was of QX operating $X.XX, share quarter was a believe $X.XX well ahead income produced net which $X.X of Non-GAAP was the income was million. million. the

quarter payment we cash repaid established cash with this we Revitas ended with sheet. Moving million term balance Fargo Wells cadence $XX.X our debt remains. balance the with on first of to associated In on portion $X seller's only strengthening sheet, of and January. in million acquisition, remain early and fully note We line loan repaid the we With the with the of the a focused equivalents.

financial expectations over business, as confidence performance year, we and increasing company. well, the outlook early mid-point SaaS continued first full vertical are a year for our confident in and profitability. and profitable we are the our we our second for growing total quarter full and revenue our evolution quarter the working strategy Turning our Based the days is raising for on to in remain and in our

we range For representing in quarter at growth million, total million be $XX.X the the to $XX.X to second revenue the expect XX% of mid-point.

the growth mid-point. XX% revenue subscription to million, expect We at $XX.X million representing of range approximately the to be $XX.X of in

to to Non-GAAP of operations shares. range count share of fully XX.X $X.X based in million be expected of diluted non-GAAP $X.XX, million in the the share per range income $X.XX income to and approximately is on from a $X.X million

tends payroll to Rainmaker’s and million $X.X programs. EBITDA the in due the in range Users adjusted-EBITDA of second tax Conference to our new seasonally keep marketing the be million. reset, Adjusted be to Please expected quarter our mind, of in the $X.X out to lower roll is

range XXXX, revenue total and year the $XXX revenue in in $XXX the fiscal to million million. $XXX $XXX of million full range subscription million we For to expect of

$X.XX to in income million of in be share and based fully EBITDA to $XX profitability, the $XX range we non-GAAP range is count in to Adjusted range on of operations diluted of XX.X shares. non-GAAP million from of to a the million. expected share million $XX expect Turning $XX $X.XX income per the approximately to million

the very remain company. we to about excited We opportunities SaaS vertical scale continue as a as ahead

our executing well. Our working is results strategy we indicate and are

We growth profitable and longer-term of We continue market are move to another objectives XXXX represent our we believe will year. leadership. fiscal will year successful optimistic toward

you Thank call. for joining today's

to Now, the over the questions. turn call for I'll operator

Operator

& Needham question. Please MacDonald, Instructions] Ryan proceed with Company. your [Operator question first Our is from

Ryan MacDonald

Yeah, good believe migrate the on last afternoon – cloud customer another Jason up based solution. to see I that over and here. announcing yet that’s Great great there a to quarter! are Congrats the two quarters that to is David! customers large we two now signing over

there talk we the underway, increased migrations? resources be you we know for pipeline what as fashion migrations remainder guess pipeline do the potentially a think a migrations be you in now again to if that the terms required get I Thanks. like are of can have bit to be year, those need for in to you more migrate able large additional about additional of add two in and to that will headcount, see, about for looks demand that any you timely going the

Jason Blessing

afternoon good Thanks for the Yeah, question. Ryan.

year into understood from So understood of make last of spade over get where last XX months, are more our you the this the, to lot offering, about importantly transitions and quarter, to our as to pricing a sure know work starring the we’ve effort definitely story roles was really understood in talked we've this our path they cloud. even one the yes, SaaS and put customers

to So as we’d the gone see last has half year, momentum. and on, year continue

you Biogen. As our that Go-live and remarks pointed out, prepared at in Novo we talked about two important

the projects that projects one also important that's of XX% – more mentioned one in about that those effective past, been faster out have we about think had both those point before them. of them come I cost to about and thing versus

to them our closer years. say than call different transitions And stages are to working we of projects that and point do on it this then over been I expect is about we’ll Go-live. in SaaS deals are a around continue stronger the pipeline top-XX next how can final progression enter talk as you also that a more get and the different know you to been, cloud is, they we've Go-live as year as we couple covering of road of and those number now right And would actually to off, they it's and clearer with customers do underway of our really have going move ever map the

Ryan MacDonald

just that on and Excellent! quick follow-up point. a

have you have now think to gone-live Gilead, and appetite adopt start more are cloud large that we or are that unlocked expansion Now some that the opportunity to should cloud and like how that Novo, becomes names about how Biogen, willingness in modules live. now live their they the that they

Jason Blessing

the are Yes, clouds. about or the we’ve sell, we’re so. that enables calculus million over the opportunity products and certainly products built that $XXX Many expansion go the that new into large talked deployed it of the behind year million able last in $XXX that we've that only to

of architecture. cloud made are architectures So of they and our cloud made

customers those from process. the does sales sales, their so products live, add-on some remove And the of it get as core friction

Ryan MacDonald

just And David. for follow-up one Excellent! quick

around consistently. think year-over-year a giving growth metric and the was that’s that metric that from Thanks. on question how about comparability about, know been a quarter a perspective? think during Just I you’ve RPO. that start should to a What we more

David Barter

QX Yeah, Q, see you'll file for what tonight, which file was we it tomorrow our that million. see we’ll when $XXX is just the over you’ll RPO

QX kind know $XX you up about So from of million.

of our contracts one with mix the this Jason performance year you we are year that pleased some our of well with three obviously, and as the contracts. real you you’ve has represents kind Ryan, know highlighted, So know this so tracked of this standard as

so And execution real think this pleased I our with quarter. we're

Ryan MacDonald

Thank much. very Excellent! you

David Barter

much. so you thank Absolutely,

Jason Blessing

Ryan. Thanks

Operator

Our proceed with question. your Oppenheimer. next is from question Koji Ikeda, Please

Koji Ikeda

bit Hey, in grew market it line subscription the just the on and maintenance quarter my the on like revenues and little nice have SaaS well quarter question. SaaS wanted out in taking had good guys. Thanks transitions also sounds the XX% that for like I item you more a to mix it sounds commentary dig some too. versus pretty you that that above there, there, OPT with

talk color more I than guess between it any there a you little XX/XX, about other I customers So the existing the sort new and could helpful. the would customers. mix mean of XX/XX, transitions, OPT the was bookings bit be

Jason Blessing

I'll Koji, that. hi Yeah, take

contribution high-tech, one and those So characterize actually and story nice I quarters had quarter have behind the both the that and to really life-sciences has we've would new well quarters last similar mix a verticals, very this five as logo sales. similarly each executed, really been of been, from nice between and customer

so base bumping SaaS I then it's that in of quarter. customer around, referenced deals. couple you mix a this to know we in contribution And kind yes, work starting yeah, from where that logo's maybe nice off our quarter another XX/XX, saw of the XX/XX been new and is pay with around given a nice has really But spade transition

Koji Ikeda

the a with maybe And a here, quarter. the digit Nice accelerating and quarter about subscription the the Got half. for full revenue know line year guide the question second David. thinking subscription Jason. XX% follow-up But guidance that at it, big second on you on half implies second slow-down result revenue, then thanks for same, being the pretty in growth it just subscription double for on the implies another the

there there or half. we something I point is to that’s mean element there of is else my causing Thanks the about out for that happen conservatism? I in thinking anything an should that taking to is second question? be mean there that

David Barter

it's and the great Absolutely, for Koji one. a thanks question,

which is our execution adjust adjust outlook. You think did about we know the good range why financial a this I felt we quarter, and

we know and now about customer right look logo's pipeline the some I game the new or that well, subscription of deals and are quarter at XX you way a our revenue, as When the working as so into are expansions. base obviously some we think their of through

right, how room actually deals Some come not some to together. those include of structures deals of and ourselves those work just ultimately ramps exactly will we’ve include plenty they given so knowing do deal and

as now. would right And to know of you to rec, about that’s just being sensitive the what in want guides so think rev you I

Koji Ikeda

that. taking question Great! for for Thanks guys. Thanks my

David Barter

Thanks Koji.

Operator

next Please question Chad with question. Craig-Hallum. your Bennett, from Our proceed is

Chad Bennett

kind are job before subscription Great! guys. top RPO model, or revenue, Nice my question looked Maybe for the a billings or the taking to subscription if as billings on at and a guess the quarter also business amount on I the imagine as just Thanks charts quarter. a SaaS it's have tricky questions. of see But conversion quarter your – significant the of subscription four whether following-up always are a you on points September of year this percentage sequentially. I up but went their in off look in quarter renewal number percent good your of I a business and of December

roundabout in rattled a the way, SaaS should quarters. last it those business know by off there accelerating metrics David? really the is you seems any we that well, Just like in Is doing of and just infer anything I couple of especially

David Barter

think actually or very around think you know, I billings. the think that are RPO percolating obviously remarks over the I it's nicely Well, you're highlighting lot as calculated Jason done framed it his whether a last of six you right, metrics I quarters. through up in what’ve really that’s And

feel you're seeing variety people obviously metrics. spectrum of metrics broad and a there look to, we execution of in together know are like is a it coming do You different the but again,

Chad Bennett

we we know revenue asking. as this decelerate at I a subscription There's point? as should from out in guess, way no far maybe really where see you are reason can looking more of why blunt today,

David Barter

I ultimately down give we really things they probably of by again reminded year, I are take next of but with deals are structure five short the years, taking of they deals so been Well, and not from work some the customers for don't work, quarters. play are next just through great any Chad feel a is, will details will of sure couple how I second three to ref to the that learned we be room timing down is, continue the and we the kind answer out that there the on the about their our for I've and as our think we and their to ourselves of will going good rec deceleration, see the half standpoint. and no, deals to But one make way to to

are growth us. you that, of to So still well committed kind worked for has know we thoughtful, profitable so that

Chad Bennett

Got going it! better. service And for you service, that guide continue. David, business least this to that the kind subscription And for throughout – did on I of item? anybody run-rate plus at line services is think of rate side appears the in year? a Can expected, fair then any this March it the million Is color the half I quarter you know was back amount maybe last at one terms of how for at did but the least looking it the better run the give for you that continues a professional $XX than us

David Barter

Great think of guidance, QX, it projected year mean kind what question. for pace holding at at we I you at you full QX look know which operated I'm and the in level. constant I that the if I

but over on and we of if well, templatized in to we going customer factor know bit, phasing You that to that to to so partners committed continue again last so its little you we XX us a in. to we have well use Chad, the know we very focused very with we're implementations well helped know so the Equally tracking are up so more step it. as continue up tightening playbook are months you and success, from kind it and

Chad Bennett

quick. one maybe And

David Barter

you and end of we stay larger at update up to So up the kind slightly having then volume step play current we'll a know if you and role.

Chad Bennett

you're or Thanks. maybe I you business SaaS do standpoint, shown of aggressively Year? then Again, of the And last is even right where up the you how maybe we and go-to-market for revenue Jason, a number, know accelerating at in at quite have you're from to Jason. kind New sales you one Are kind little now nicely. what think terms the bit need comfortable hood quick capacity expand capacity throughout you feel know more a Perfect! of that the in in under here the need year? a or least you you do

Jason Blessing

for Yes, Chad. that thanks

you we work our team So did are fiscal Lyon of on this last course we as happy come lot over the know progressing. sales into the I'm Chris the very of with as a how team and and year,

very leadership team We that Farmer pipeline continue and company and year we XXXX, fine-tune that year, we probably Hunter in a year, the last know then about entered our the the this cleanest to you And we've strong with half. talked history. had over model

really our based I the the selling in continue we towards thing is XXXX, is think our focused the the for Northeast. way motions sales California, areas: the our U.S. conviction are and and is mid-part and us, XXXX the prospect right and conviction three of that eye absolutely go-to-market with nice our and on about opportunistic in handle different customer an capacity they to invest our base to base

been have and opportunistically those feathering we we've where see so we opportunity. won sales capacity areas territories in in And

Chad Bennett

work Nice guys. Great!

Jason Blessing

Thanks Chad.

David Barter

much. so Thanks

Operator

your Ader, from Jackson is Our next JPMorgan. question. Please with proceed question

Jackson Ader

my taking for guys. Thanks questions Great!

know First cloud Which customers being of average are up? a using the in the then significantly for penetration metrics, the which those a you more do or and one adoption XX those preference months X.X is up pick and of really Those will, moves metrics for you next to cloud do product think have XX% right, of you your the XX cloud products. here Jason. of number you

Jason Blessing

talked new any on-premise also penetration we’re base up. about is customers talked converting selling on we've products sell to the to are as customer offerings One, cloud about the who don't for logos and reasons. momentum two I probably percent from for as cloud going quicker momentum up the the of today, picking anymore. mean we our cloud move are a premise is customer also base, total picking And I Yeah, only I think in as then

percent I whammy think behind nicely customer a base then has in that. total in that think each penetration of of and logo's drafts the I double portfolio So and terms products kind of customer penetration from new

Jackson Ader

transition of makes was a sense. Then the that not of follow-up agreement; Okay, deal? deal go-live, announced you a quarter, preferred that to Is SaaS the the a structure contract in the kind ramp for here? lot the is David, ramp this that still new

David Barter

They have as are, a The ramp. customer of this part does have does and one to their deprecate investment an on-premise shift.

Jackson Ader

Okay, and then. then follow-up quick a real

these ramp Just you us, do in or the XXX even under deal deal? of have you are to to remind actually line the straight get growth ramp structures able some

David Barter

this Yeah, they deploy to a question. tend Under wanted given We’ll of the will get bigger. smooth other be transaction how start to transactions. XXX the that’s great nature and particular smaller will customer

in So accounting. work the dictates with want and final revenue the pretty figure closely we know customer deal ultimately the that out you to what they

Jackson Ader

Thank Okay, alright you. awesome.

Jason Blessing

Jackson. Thanks

David Barter

you. Thank

Operator

your question Pat question. with next from Walravens, Our is Please Securities. JMP proceed

Joe Osha

This for taking Pat. Joe Hi question. our for much Thank guys. on you so

Just SaaS be do Any a know lot well still there? transition, on going the room color you great. forward? for efficiency as should there. we as cost the about improved I would mean of that obviously the times you see on think this improvement How

Jason Blessing

with don't it's very know the at there know point of actually material that efficiencies, probably and amount can a that in but terms in I we've happy range. I'm or so you the time progress another dozen XX% the ring-out worked terms beyond on. XX% we first or that cost, Yeah, over made we've this of is

Joe Osha

us regulatory that it! then Thank you a follow-up. update you commenter might quick Got potential you receive? the a and just tailwind any provide on Can

David Barter

the that important question in so cost such to that's of the parties elections you're an and been both healthcare referring platform. of Yes, assume I part

are how are implement how this really So is And I and it in closely to is our which important are it the changes because discussion positive, very we them regulatory and you great of stay of it’s customers and us would think for that around as been this me Americans very our what strategic who most terms also would legislation say how I and in election space importance required the for has reminder shows where the watching this current, a products like is. important Washington. is for a result any know

to to everyone ways our think out then told to so we are bear So legislature. figure not we But beyond change multiple election I what that, months regulatory where you the certainly have depending trying going happens and to change. I've may wins, with bring who another nine on or you have through to here's election, who's know topic, to on strong bull to know may this what or any got thesis we a or further you then get go be develop would know the the drive and meaningful there that

good us, our products again the work thing slowly. is because how heightens I in So system think short the you know but ultimately a it are, Washington is for importance term you of strategic designed to know the

Joe Osha

much. so Great! Thanks

Operator

proceed is from Brian Our next question. Please question with James. Peterson, Raymond your

Brian Peterson

congrats quarter. Hi Joe, a on and strong

It like really seems the with improved have few So you side. SaaS on of had both a sales there cycles at migrations we helm. the profile high the

expecting high you implementations customer that sales cycles to think to for transitions forward some proof see? or or on only going Just these are are a customers to of the references level, points shorten you there related

Jason Blessing

go-lives think we've need March have of large on evidence you talked now see, think that. year, have to global we didn't any about we and back companies. to of the multiple now last body I go-lives that And large if customers

to points the to over view premise lot accelerate there headway around, of that can N I few on map cloud, go We customers? a handle have making a sales number and the that's global so we've cycles up Model decision how of think projects and I in is the large something next The road flight from on really going to years. and proof made do

this And I inevitability certainly their an for being to years. to largest of the all N next couple as in wind XX them cloud see view with moving my products still and of over customers, an tail us our Model important the discussions continue

Brian Peterson

David. be Got And may it! for one

‘XX as investing know directionally, I we growth philosophy of leverage Thanks beyond guidance terms but ’XX, of margin investing think the have follow-up; versus in guys. vertical a year as model the Just how I software and a in fiscal think we about potential for growth should of about kind year leverage in the the fiscal then guidance.

David Barter

your for question. Thanks

our to think we as approached I thinking in consistently, about still way mind. have and we've way just like the target were we the right feel I framework the model this is

way add through continue but areas as we'll Jason you benefits we one we have get those West very and continue to very in we’ll of about these quarters Cost where to of our even to the resources are all way, so work resources highlighted is kind that the great a Northeast, think part earlier, model know Chicago the the is, the scale I the of Heartland become And between think and company. the the and density of as the Minneapolis. from in this sales the vertical I thoughtful accretive productive

a the plan. continue So kind within target and cultivate to to model the of operate we'll continue bounce of

Brian Peterson

Good, Thanks David. yeah.

David Barter

Hey, thanks so much.

Jason Blessing

Brian. Thanks

Operator

Company. question. your from Mannheimer, Our next proceed Please question & is Dougherty Gene with

Gene Mannheimer

the progress all on Congrats for two well! me. questions as Just guys. Thanks

won’t as also the and be this attainment, implies that that strong have You quarter, from second know wondering, one-time a in talked I'm recognize was there because about margin been gross large out called remaining you was seasonality exceptional over this the just margin Thanks. may revenue quarter? anything you else your the and perspective, quarter, I your quarters guidance go-lives. the the

David Barter

year into XX Well, it a XX, last we at the this thanks gross up going at would points. think better. you about thought two if thought about Obviously Gene. it quarter bit we about year margin be like Well little felt was I

think continue I operate efficiently. to we will business the

bit. pretty you the I bit to I think plan, that But of moving a up some later right I we'd infrastructure hit know us modern and call from in it little headwind customers we call, definitely some as the that a and operating did we're highlighted know previous think little over now actually know you the year. so in I’ll close you older the infrastructure to be have will

Gene Mannheimer

business, and how Jason respect moderated to you're Got stepped off offered about you, focused hiring very And QX before year or this opportunistically I'm Thank a We And ads. ago wondering you. well. last to how thanks appreciate on that that up there. your know it net level? you year with same reps paying I Is you just you! sales year's be appears Thank new of to the hiring the hiring the color Dave. in you're compared about organization,

Jason Blessing

it's distributed it evenly say the about customer I and then sciences life evenly fairly been customer and distribute new also further between and sales would acquisition It's between high-tech and same success. and logo

have are feathering think of done take to really and the but those each growth those I All capacity meeting in thoughtfully levers of advantage been of across we’ve we different of opportunities, job nice a board. it one has

Gene Mannheimer

Thank Great! you.

David Barter

Gene. Thanks

Operator

for back closing to We over end of turn Dave the the will Barter call have reached remarks. session question-and-answer I now the and

David Barter

look joining to Thank appreciate we everyone everyone you much. today's so call at We and really upcoming conferences. seeing forward

Operator

today's concludes conference. This

your your this Thank You participation. for may you lines disconnect time. at

Model N (MODN) 4 Feb 202020 Q1 Earnings call transcript