MODN - Earnings call transcript Q4 2021

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Operator

Good afternoon, and welcome to Model N's Fourth Quarter and Fiscal Year End 2021 Earnings Conference Call. [Operator Instructions]. Please note, this conference is being recorded. With that, I would like to turn the call over to Carolyn Bass, Investor Relations.

Carolyn Bass

Good afternoon. fourth fiscal N's call. year-end Model to quarter XXXX and earnings Welcome is for Relations Bass, N. This Investor Model Carolyn With me Financial Chief Executive Lewis, on Model Accounting Officer; Blessing, the Chief John call today Ederer, Chief Officer. Officer; Cathy are and Jason N's

financial and statements. subsequent the any and forward-looking you expectations release representing factors posted for any upon and the forward-looking may These in year our current update as our with outlook management's website. primary filed information at our offer today date. call obligation today's SEC. quarter of purpose recent Please market regarding are on views Our earnings to XXXX. of quarter issued XX-Q fiscal outlook. or risk is be this first views differ on close to as performance, and press with of include relied materially. September The We as was refer our may ending Form forward-looking disclaim any and a year The is and results Actual XXXX statements on made based to statements commentary of our fourth call should most not provide fiscal XX, the

press reports webcast quarter this and to press GAAP are today's GAAP access we Reconciliations fourth to, investor.modeln.com nearest our during year at from, be available of considered our or XXXX of IR discuss to not earnings on website. for I the the issued measures. non-GAAP in in non-GAAP visit replay to release, metrics encourage as and you today, financial results. non-GAAP addition, In release call. is call, SEC isolation in addition financial will which our the periodic metrics These fiscal measures should included a website substitute

comparisons with stated, be otherwise this financial to the let unless XXXX Jason. And me that, all results. to call fiscal over our call year will turn in Finally,

Jason Blessing

pleased EBITDA. am revenue, our quarter today. welcome adjusted our fourth on and to Carolyn, to you, results report beat call I and Thank total revenue expectations that subscription

end or I'm very proud strong Our an for to a are as company company others the Transitioning But punctuates transition, is quick team have a model in resulted process. models. from Model more good easy successfully the with on-premise XXXX who business QX sustainable to we an a of not which many in our executing. stronger SaaS is how N, public and business made

pleased model to and customers this As I growth made with we progress us. involves reflect last business of year, them I front. progress Part execution forward made care significant a the am SaaS of taking transitioning And on with with on we've overall XXXX, moving our our our levers. and

we transitioned of approximately have end the As the of our to half cloud. customers on-premise XXXX, of

transition the talked continues and to methodology our excellent. previous have and to to I customers move calls, cost decrease, finally quality been on and tuned about time As is the cloud has

predict infuses basis. it can contemplates of deals when as in and front we difficult these these work customers, to have potentially impact positive, significant with of are guidance the still to associated today financials expect will customers of ARR our portion these quarterly to on quarter incremental provide some the that us. to room big future also We but a be will close. precise us Many our with deals a closing the in cloud XXXX, The remaining amount a deals give also be John lumpy to of moving on larger conservatism but

insight Again, to moment. in annual when will guidance we we success John SaaS the also our to our a provide into at see starting are compared recent accelerating with an Given are decline he having maintenance this transitions, levels. gives rate

by continue part velocity we we've XX% and pleased new sell to prefer continued rebranded successful pre-revenue an X customer notably, management grew the In transitions, the made to progress in solution. over Deloitte integrated our dedicated the signed the new the This to years up out total making In revenue services. and XX% to logo and due also over addressable sales the to world teams. that from versus market, expands number prior total most of selling buy in overall year the building business to software our accelerate XXXX. significantly changes are motions, XXXX, be sales addition SaaS XXXX, deals acquisition, to more companies to last I us closed with services logos the during integrating which we have to largest business we enabling

synergies We play The into latter our Pharma, business is and MorphoSys, a with out Caraco and has many an at key base. been customer have Model Mayne their for seen N existing with services already QX in cross-selling core realize Model example European customer to years. revenue wins our using our N in by who division ability M&A of and thesis great

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have results. heard are the more We making is transition. that would quarterly not from SaaS always feedback specificity that progress this in like We consistent recognize we progress obvious they on our GAAP on investors our

feel progress transition progress to additional we some as like already In we N. share addition to making illustrate also I we reinvent are that Model metrics SaaS the provided, would metrics that I the

to drivers subscription Model strong high our renewal results that rates. which key in been has provides the solution, of one fact mission-critical ROI First, the growth a N very

rate was retention XX XXX%. retention at dollar XX%. months above best-in-class Our ended during our subscription gross XXXX, SaaS XX, rates net And September are the

retention growth of XXX%. show net durable a excess finally, And in building numbers to retention we that on investors gross of line, be term SaaS other our to difficult continue has are maintenance specificity the are introducing given included such These licenses. expect understand, revenue software the to subscription to something as business We recurring subscription that today, plus components been and business. for be we retention our XX% in SaaS and dollar more

making are we to we are N. we year XXXX, commentary with due in this targeting exit progress and revenue key making on hope better accelerate helps XX%, the the as we at additional our For to we understand this investors growth XXXX growing levers. progress to expect Model I the are reinvent SaaS

expansions an on our completed numerous a by levers. signed quarter. give contribution growth and you from with two Next, we QX was transitions, Success of recently strong both and customer We to healthy Sciences in solid renewals also the closed And across Life similar new deals to SaaS board. last update quarter, contributions base I'd High enjoyed logos, like all healthy amount a driven we from Tech. multiple

SaaS Turning to transitions.

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High Turning to Tech.

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the and sales signed international of model is in global Cricut management cutting computer-controlled machines channel X the a new Cricut consumer logos, quarter, scanners Cricut starting division. During and manufacturer Ergotron. including and market. data their team our $X implementing billion is their journey for by

at us, always makers to key customer, repeat One on favorable selected We with his is and Model us based love the Cricut of again. prior a see decision customers. N he experience

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XXXX, Europe. which announced also largest logo in Tender world's med QX Management go on new live as We the of a one product in tech Global companies, we our had

to and deliver margins. Our at on-budget best-in-class on-time, services team continues

expect to has built into services we a the earlier, as head As substantial also I mentioned as I in our strength XXXX. continue team backlog business

Turning to product.

team highlight Sciences group Our deliver, with customers. important new Life an of to largest to on we would closely continues our a like I that and are working product

about changes ways stay any to compliant. laws for the last stages starting have enacted and in are These new we XX years, take drug price require are new of manage drug manufacturers information Specifically, this justification Due complexity few the the is looking over or efficient are state, laws effect. the solution. of states, change. state management launch to growing, manufacturers In transparency each or to and price requirements process report by list rolling pricing drug new to drug the transparency with that this the out final a along

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of and close the I'm We recognition to the ahead. and are the love very the high-tech N fared This rigorous that during the outside also our is with we the in for our XXXX from solutions execution year pleased praise to evaluation I'd their by like and that I our quote future. I'm endorsement Model that is customer we ultimate IDC. value of about customers. excited saying how provide proud built

discuss makes our earlier, off. And which maniacal levers the optimistic our growth I'd levers Our turn provide financial guidance. road like and of logos the I update now call expansions results noted is new on we to in our transitions, John? runway me as all and our over John still to about QX paying an ahead. to SaaS have significant on of customer growth focus

John Ederer

Jason, you, everyone on to good the Thank today. call and afternoon

note, organic our Total we exceeding and for the As Jason noted, was out revenue high in driven closed fourth a revenue upside targets on growth subscription by improved year quarter. revenue our profitability. as

was our drove the strong A to continued profitability our steady improved controls ahead migration business in Business back of QX, of has We earnings while and on adjusted group, margin the a summary, are improvement path. plan. two which been share. integration In contributor of subscription and overperformance well compared gross also per the operating still had and on which Services guidance the profitable expense we our growth successful executing navigating to on we're quarters big model, EBITDA

Now $XX.X including top including Services, our the $X finally, revenue from XX% Services. to results quarter, our and Business million, professional grew this And of end at $XX.X grew specific year-over-year exceeded revenue fourth $XX.X XX% revenue grew revenue Subscription Business to looking for of to by the services million of guidance. million, XX% the million. addition total

profit or to was $XX.X gross Non-GAAP of million XX%. margin Turning profitability quarter. the a for gross fourth

now N QX, for margin Services, subscription QX due Business revenue down improvement in Business other we as QX this of continues were from in was hiring expenses QX QX XX% very to timing year last and the versus QX. gross an due slightly well. due margin the XX% Non-GAAP the While On QX the basis, to services of year for but XX% which year versus than was last XX% for last expected and this was last QX seen And in year Services, to sequentially gross some QX. in subscription was margin slightly addition above from QX in professional to in core year XX% remains Non-GAAP lower sequential XX% revenue also in execute Model have gross team versus operating investments. and to organic was mid-XX% steady gross for non-GAAP XX% margin range. down up

the it $X.X quarter row year-over-year, the growth of in As acquisition. representing EBITDA successful QX, high well the that our a second of guidance of a of XX% Adjusted ahead result, range, was which XX% margin Business been million. is for has integration was the $X.X adjusted end EBITDA million, mid-teens the for quarter back the in of reflects largely and Services and

Adjusted million for of XXXX, per a million year, XX, an year per total was September which XX% XX% guidance net end by margin driven $X.XX $X.X annual our share of share. our non-GAAP or $XXX revenue the income for the fiscal On Finally, $X.XX ending high versus year, services million, up of $XX up million, basis year, up subscription EBITDA for which of was last year-over-year revenue professional $XX $XXX of million up revenue versus was XX%, represented XX%. the XX%. and and was was

sequentially the of the flow. balance was in from ended at $XXX.X million of equivalents, and deferred was June. up from with And Looking year-over-year sheet a current revenue $XX.X $X.X $X.X up operations of million million, cash on $XX.X million end QX up $X.X last the flow end million Cash cash We June during QX from and which million, quarter was up the XX% and from basis. year.

total increase the an XX% of was RPO Current of increase totaled an remaining year-over-year. XX% $XXX.X or obligations, $XXX.X In RPO, performance million, terms balance representing year-over-year. of million,

metrics to growth on may fluctuate RPO, renewals, basis contract our on or While the seen of overall, quarterly we revenue. timing provides due which RPO lengths strong in visibility better have future a

business. As we to key the on year fiscal to continue as transition focus a there look to ahead XXXX, few are trends we

the news business, the First, but impact to accelerating, is how SaaS are important these will understand which customers is for our good transitions overall for larger it model.

to which year. half we we occur to associated of budget is some our fiscal the for customers. to similar what patterns our revenue deals are anticipate cycles the to see that during of experienced And year, last result, We as second starting a these seasonal correlate the

digits the SaaS starting Last but mid-double expect starting in single-digit increase maintenance is maintenance this high to to expect we to maintenance revenue, low declines to the this pressure the quarter. the on put we in to quarterly Second, and year. to revenue in year, transitions accelerate in second mid- rates, increase declined

continued our in declines revenue. the offsetting the Third, revenue growth is maintenance SaaS of

the metrics SaaS the XX% net and and subscription business, SaaS the represents SaaS the ARR, SaaS going revenue or now subscription revenue FY our the we are basis. majority is our our provide our still $XX.X you SaaS of in be revenue, the the up with SaaS subscription our will currents with forward. on FY 'XX retention. year-over-year revenue dealing portion driver will we help recent of for daily a was To most annualized ARR, of cross key recurring 'XX, overall ARR business of understand annual which value While for SaaS in for finished We quarter. million dynamics

we related finished to XXX%. net SaaS year our retention terms the business, of In at

might see quarter, with excess net given XX%. any While SaaS we seen have FY in growth 'XX ARR exit typically metrics of dollar in we XXX%, we and to these are fluctuations some at in targeting retention

terms range In EBITDA to expect we non-GAAP be a million; total diluted on our million for million $X.X million; count the adjusted be the the range guidance in approximately range of million per $X.XX to the $XX XX.X million; to to the in and $XX to in share of shares. be specific revenue based $X subscription quarter, be $XX.X to fully range of $X.XX revenue 'XX, EPS $XX.X to million in of share FY to first of of in fiscal

to in $X.XX XX.X count $X.XX reflects a $XX XX% share of diluted million, range; of at the range shares. EBITDA in fully of year approximately expect midpoint non-GAAP to million $XXX XX% on XXXX, representing subscription $XXX and midpoint revenue in to million of revenue million range in $XX which the based the million, per fiscal growth at range to the the adjusted range; million year-over-year For in the full $XXX the margin of $XXX we total of range the of the of an EPS million; share

an models. for Finally, of quarter of the bit your 'XX FY build you additional second clarity as

revenue we are sequentially While provide integrating from X specific decline have QX, maintenance primarily their customers with and QX Model who N due and the revenue a do subscription today, in decline of merged we won't result us. existing expect to guidance for to contracts

The second benefits. to an due seasonal higher employee quarter from increases expense is also expected be to in standpoint

SaaS business, a growth, be QX but and smooth we are In investments a revenue both from the the As the accelerating in over with process expected to managing second as years the will shareholders. for and the profitable does is that way this migration watermark largest call result, growth a of questions a customers operator driving proportion even profitability year. are to of require Helping balanced half any committed turn our With platform our future cloud to revenue might to make transition cloud. our our transition drive across business. a greater over have. I'll low we in adjusted back you responsible as that, EBITDA margin we standpoint, summary, to these elements to investment becomes higher the for approach for an even the customers growth the our customers ensure These ultimately many of

Operator

[Operator Instructions].

from comes BTIG. line the question of first Our Matt VanVliet with

Matthew VanVliet

terms we to your in the little sheer those expect SaaS now average seen to largest a in customers of Nice other, number the that so at for some could that you've it, update than XX% to an highlighted transitions of are Or or uplift then you've still maintenance XX% a is the less the Jason. you that, a on update, number are over job some from that guess of potentially I them wonder off what did SaaS of we SaaS size that your be push you call recurring you transition And stream level guess if at quite that as and on platform, of volume when customers uplift look and just into that, capacity of will thanks down bunch payments. and metrics a of the get customers. the far? that done quarter. slightly. Should the that the starting I you have look on you

Jason Blessing

Jason. I'll that take question. it's Matt,

that to of on-premise just the our cloud. all, on of specific be first of we XX% the some cited. progress transitioned metrics yes, We've to commerce So SaaS

a We some cloud there. using actually of hybrid have broader out because footprint customers deployments do products have we

significantly of a footprints deployments that's generally And ARR to of which than these customers largest X.X% through pricing be that it's we've to broader the first ZIP want though, Model -- true and us the remain gone on-premise this more I that customers. better Just end as benefit moving in think do transitioned broader is larger some think generally 'XX. negotiate X.X% speaking, of have that this next pretty because to does customers, still about and fiscal year held of I we've over code. half they XX% clear, clarify And uplift, half do I the cohort, that as kind that, So of N. we've some also our in And our of half. of roughly customers the are terms the as have of of of because about do the being to cloud have of talked yes, so of of the transitioning larger implementations include customers It's customers. front many see we talked

Matthew VanVliet

platform a business? module-based you're the do you're is product that kind -- then to your of terms much And I the a U.S. you broad were drug if scope the that product Or guess, customer how the smaller base that helpful. of of possibility able has add-on new preparing cross-sell of within transparency across to maybe in to Very entire be of a rest state might that on right. it be? expect comparable overall All launch what pricing you to that

Jason Blessing

Matt. Great Yes. question,

of excited subscription-based as to we all, changes, our products, these a right customers and in adviser and is of is any think some best with to a address and regulatory our way it with value help of the N of will I also bundling terms of get as almost are midsized forth. And the terms the we portfolio kind so benefits product this up. U.S., subscription-based step of are think Model changes have It from about a in opportunity, by is as of trusted this it the selling, the and relationship that point The it needed product that product. you companies would come this characterize really one, the products in add-on we're all I these of in is something capabilities. first represents customers that new about enacting So laws. that states in practically super of have as that out, the opportunity

it for So see having interesting the our a as these next states we contemplated laws. pricing it's a have years, particularly more of we as that see adopt transparency effect very kind year. couple do opportunity guidance on us, this exciting in very this opportunity business and over of the but we think the

Matthew VanVliet

maybe then And clarification, John. one just

sort On smaller remind is us transitions if sold ramp conversely much 'XX a either have on there's that that the in SaaS growth. or ARR just help guidance you outsized revenue maybe contracts you us for anything reported or 'XX. remember impact will of Can versus for the that have from XX

John Ederer

Yes. Sure.

deals deals see start 'XX, ramp renew. expect compare out as revenue. to these still of more some start have when a some as a we to that 'XX, a growth with where to first would much But really transactions tailwind it to an depressed of element the is impact perspective. they're regards in from from rate extent, 'XX the ramp to to the overall FY So nonfactor. an there you There's doesn't in

Operator

from line comes Craig of the question next Bennett our And Hallum. Chad with

Chad Bennett

questions on net it metric few around you've basis. a of looked couple the quarter given just a trailing expansion So that this and pretty quarters, at the strong XXX% last

the of and cloud from a would kind to ways versus we about if and a net of new into think details. kind addition net expansion between Life So couple there of of customers? cohorts kind a of addition base the net those we -- customer if too any that SaaS think your don't But want a metrics look about it conversion, different at the different we I and two look Sciences get expansion

Jason Blessing

Yes. This for question. the is Jason. Thanks

Let me sure understand. make just I

the dollar on-premise retention our -- is versus cloud with use our net So is question customers. customers stronger

Chad Bennett

No.

that added months thinking over their net a So in the customer business has new the last Life in cloud in expanded ago, year. and expansion converted, customer just maintenance net a about versus XX and rate the logo from Sciences if how what I'm looked you right, the XX months they cloud like

Jason Blessing

question. Yes, got it. understand. I I Great

broadly -- As Oftentimes, have about division transition, more to deploying in taking to broadly past increasingly a proved cloud. have me, variety of baked upsell. of of we able also we SaaS examples And on the calls, do. then different part inside and -- talked and company. to our in And revenue. things there's well seen into position service. one enhanced the we've a and new of for excuse modules as where moving more can be we as levels transitions recurring we're or a can is benefit of which catalyst So the sell We we're cross-sell a footprint one that when do company SaaS

transitions, and you say to it's they the the look just to been go they been Not project, -- new they that a they have robust. cross-sell robust have path logos back follow slightly SaaS a aren't at buy on when And totality come so and these attached they and of customer, upsell become different that they that's pretty expanded stabilize live because more. a then some a the of they product,

buying But seeing these the transitions a footprint increasingly, as again, a been of accounts. So catalyst it's we're just different in bit a SaaS just broaden little to pattern.

Chad Bennett

curious obviously, you would XXX% just want Got have addressed expansion target there question But in know I on? the forward. if decelerate you it net seasonality deal it. to the do out Good but with impacts in don't would migrations, I color. good targeting know, answer Why to And don't But better. but that, last the for something then about from know first with potentially why -- a just just XXX%, Is I it's in that But number -- to half -- decelerate terms and there expansion going question. there's we of something XXX%? that ramp the you're necessarily. from going You talked --

John Ederer

at thanks Yes. little and actually is look the would This guess, a I it John, question. for I bit differently.

so XXX% normal. which But look I in this of that above course, It and number move bit does And has typically XXX%. been range at quarter, from at range, it's XXX% little consistent. quarter-to-quarter, is when we're a bit think we so little been around to this has been a the where it historically

being And I other where so to I in been forward. see and think expect going we've don't And necessarily range. the think we that's about than as it consistently what decelerating would

Chad Bennett

I Okay. was and And then between calls. hopping --

if I you you 'XX speak at this, 'XX? apologize. in least and go exited segments, But to year the margins revenue where directionally how and from gross they So addressed two you specifically, fiscal John, did

John Ederer

gross recent performance, mix at the total We pay did margins. included gross look I revenue you to you company. And as I and guidance. 'XX. margin for not indicator FY the that would I speak would specifically for see the use in to as think that's the an can also our attention

Operator

Ryan question & next comes Our MacDonald Needham from the of with line Company.

Alexander Henderson

be processing? give would you pipeline on Alex migration? migration J&J notable Ryan. is from And update the an for the what Could is impact on This the that us on also,

Jason Blessing

as project, J&J. about the kind J&J with the a of So in we've journey talked X-phase is past,

well. We're of then their division, live bunch J&J a division last with was of through implementation thick we in now it one there. pharma different right and year. and their which divisions, out we first tech working of their med architecture still have signed and The and the as Japan, issues went

we're So the right that's and program, right now. it a in of big middle multiyear

Alexander Henderson

the able a Great. from that you perspective? you in as management pricing space leader a were for optimization market and applications. to also, are How leverage cited BD go-to-market then And

Jason Blessing

Yes, great it's question. a

So that there's that we out. favorably market the couple came And IDC scape out, recently stick fared there. very of a things

and First list RFPs to whittle processes. going analysts invite turn of still to they're third-party of all, who buying down customers their to to these

N to And one, thing, I quote. then is that customer The So feedback to it our is that about about not there for went talked a High interesting that really They verticals. focused all is to said vertical software reinforces Model some cool pretty Model for N pricing be our I were specifically helps about us which I the on think really it thought value a good a built future. how to management was was And built and there company things talk of being in all there. people, Tech, report though, a but and that think as channel be just really generic couple trying to not in solution. trying very

Operator

Jackson question Our from comes line next JPMorgan. the of with

Maya Kilcullen

Jackson. I for if has is on Kilcullen the preliminary wanted to This of just since you anything commentary on know last gave changed kind Maya quarter? 'XX

Jason Blessing

call. would made the based for I guidance Well, were last with that still comments we believe 'XX. in with our we estimates on at I is time comments last that would I quarter. consensus made the But I fourth guidance the made suppose line consistent the And FY we reported our say comments is no, quarter. other note we've that, that than a the that

Maya Kilcullen

just then a And Okay. as follow-up.

maybe the wanted talk SaaS strength the just in transition. So to about

I think X, you quarter quarter, was maybe announced X. this last

seasonality there? more the or was with the to of do customer reason with earlier what is that business kind mentioned the you cycles, for change the just So maybe

Jason Blessing

great you example, customers as will and I look XX a there this in question, last emerging the X last back over it quarter-to-quarter and returning of thing, -- to more it's enterprise we're XX, known Yes, we've that think fluctuate it's of as some in the way, the took software widen seasonality that like to summer a by in number years. couple good seems perhaps business vacations it to kind aperture over and from X. XX the if you seasonality is And an years see the

over much seasonality last evaluate So The year, last lock there, was multi-quarter period. the in over amount this in quarter-to-quarter. up It's on wouldn't but transitions little a too year. bit me, of I was of it to have announced statistic excuse and that of year up sequentially you number SaaS year-over-year. more absolute a --

Operator

And be have with Instructions]. the line Baird. person next [Operator would Vruwink Joe we in

Joseph Vruwink

the I of and start context seeing in a faster are communication accelerating are transitions. pace. because I'll to the your that events a broader seminal you're mean, somewhat in maintenance decline bit SaaS step these just back getting it transitions at revenues

thinking or the function 'XX, is, spot? of transition has Model speak so N in could And your is thing been company Maybe here ask, that to years done levels comfort there, about I'll years a specific maybe it's in a a you what positioning maybe the are the learnings over from a are better just ARC the just fiscal this now making? entering why happening has customers of number

Jason Blessing

question. would the Yes, start is SaaS in I seminal event. a And a transition with seeing Joe, story you agree to appreciate I decline maintenance

I So totally that thank out. agree. you for pointing

combination a it's factors. think I of

they've those got able we transitions getting to either transitions look of customers take and dozen are and They're large this transition As started year, the is, that in more they're couple seeing comfortable more now a more updates that And at last new those regulatory year. see starting or been quickly. to a updates, customers adopt through completed. we see more reason particularly customers innovation. They're express seeing one, successfully customers interest start

as I we the comfort so would that And of in just characterize it out. figured this sense growing base have there's a

point. implications deals so exited big then at look are likely update on on look year. as this what year tipping as to these at some And knock That's the to guidance maintenance we said, of year as the of us really at we indicate important down as are that that started maintenance and close and I some to that led and last this well deals, to started our

Joseph Vruwink

already new as on about you of the today those visibility guidance in executing point deals much characterize last from is on of have and dependent opposed up how a fiscal the to, on providing on closing contracts you're 'XX. normal of possible visibility I function a opportunities as years? renewals just suppose, Is ramp coming And prior it what as to function

Jason Blessing

won't for terms I'll visibility to specifics the able the seeing. you little on give increased that call a today, describe we're I be in you of Joe, bit but it Yes,

to the bit I more in SaaS a side guess, quite as at and business out-year. one it, of could the metric more terms of RPO. is more actually the look do I we we visibility the you As point transitions to recurring have and specifically

so RPO over it percent a current our trending, increased particularly has A how years the couple probably last if the years. revenue of been And look as ago, forward RPO. forward That our you at was revenue. of of couple of has our about XX%

look about 'XX, FY of do that exiting it's the subscription and of see think our revenue. if I you'll at midpoint math XX% guidance range, the you

confident on that feeling the more of the terms visibility we're business. in got so we've overall And

Joseph Vruwink

Great. one. say just quick XQ? And the where year a final then finished revenues Can you maintenance in

John Ederer

Yes.

break indication of maintenance. as we're an So in did we're value provide it. metric the I the happening a that at dollar why goes from increasingly, look forward to situation line. of rate well specifically the revenue, to as to business, of is growth terms the subscription hand not into SaaS driver what's SaaS providing perspective. a want be revenue get we talk and hand going ARR appreciate with different our all to retention But the want that of to of do elements is of We it the in as question, about the which don't And key out little going to a bit the we starting

have next little is going driver insight that the do items, bit few can the to for And key do course line over a of some we'll so other more what of you the while into they're years. the what

Operator

of from Our James. with the Raymond next question Peterson line Brian comes

Brian Peterson

talk thing. is of one I seen on the you're Tech coming levels? market how that is today another terms or currently quarter build bookings, Jessica QX. of following of High of Tech a pipeline about demand to strong that business. This of up have that seeing especially strong indicators shows just a I Brian know a that growing back going pre-pandemic, in High part Pearson. trend from was back new for a But we've mix we're pre-pandemic recently, you On can on

Jason Blessing

Life Yes. include Tech. Thanks, Jessica. you mind, if Sciences that don't High question I'll both broaden to and And

upsells expand during are our really already in pandemic where in and now And think, quite it Life feel the we've we've don't we discussed during And as very back talked several Sciences, certainly in Life customers, So Sciences back our enjoyed we've And strategy, know years, High fairly that Tech as in we're visit existing quarters, off has opportunities results, paid I last seen our look then there. a then, And partner me, X.X but the to in has the to base. we've last and as pandemic A Tech over to Tech. well-known really that High the We're levels, as head And 'XX customers announcing couple seems we've pre-pandemic continued continues reported as in does about to as I 'XX. cross-sells we again. to quite the past, well to robust. like improve. we're close And fiscal that focused new vertical we've again excuse yes, that. for very High started office. the robust going customers -- lot the you've in of are of on customers into be

just demand a day, pandemic I recover started you as also in see general, starting that it's having address these the vertical -- solutions on vertical service help the has vertical issues. Model automate is all based a of global it's to N part factors one some in business also So invest a different to and the of macroeconomic think are -- again the every like and the them it's of that's we in from that demand news incredible they that

XXXX. good Tech into we feel head verticals also as we So yes, is both High about back, coming and

Operator

from from of the we And Tillman time it Terrell more have analyst line like for -- Truist. looks one with

Joseph Meares

for on This is Joe Meares Terry.

how last been quarter? the is you guys force Where now? could retention And has If your sales are over comment capacity currently just you on right how sales hiring?

Jason Blessing

Yes.

So great question.

We've the over couple So ops years we've logos, sell after out to customer in success out of out as a well leadership as additional sales a base. last a built new as go customer sales we building invested invested in function. teams the built We've into lot team. sales world-class dedicated

that of on the we've top of couple and last been building starting foundation about build foundation. the to So really years,

it the hiring we as doing, capacity, team to great would terms we're work. on our in a of really success a built and foundation that's come a base, into And hiring but that for things fared of Sciences relative focused this to in foundation is today. and And little splash great it place group. great so the customer there, some describe kind customer of wood, we've opportunity that is terms retention good a then where of we're on Model And throughout retention, pretty the Life the with on there N just areas pandemic are had sales built. in speaking, huge of up additional on the you read hiring, even this given the in this to bit little two that Those knock year we've year. exists have a the generally great build And ready the I of known continuing as market. top we well potentially to

Joseph Meares

XXXX? real Life white of biggest follow-up the do pharma, good see That's just med tech of to verticals Sciences, you a opportunity space And biotech hear. the where as Within guess those X, I and quick. into

Jason Blessing

to of and kind expanding a Europe. of company the pharma amount and have, white space new selling there's heritage being of the selling large customers huge there, of the other all and with into we biotech Well, products divisions,

and So an more announced med then to built that investing been We of the go And that value-add Management tech. area in tech sizable competitive as makes for more earlier opportunity. the med purpose-built we've I solution more we've characterize med would opportunity, near-term that year and that is near-term one us tech, after. is in Deal that

top term medtech great pharma lighthouse based pharma. we've are already got of do and XX us. And opportunity them longer growth on some medtech for I accounts interesting view so customers. Many an And as

opportunity to we're capabilities really built mid- medtech I our out growth partnership about. excited them. of with that a some we've think presents And longer-term So that in

Operator

the turn And closing Blessing, now Jason call session, we the I'll have reached question-and-answer end and CEO, the to remarks. of over for

Jason Blessing

progress year forward Model operator, look quarter on you us the thank joining everyone, the and N. throughout you, for throughout to you and the you, We and of today. seeing Thank updating

So thanks evening. again, and have a great

Operator

your concludes And your participation. may Thank and conference, disconnect today's lines this you at you this for time.

Model N (MODN) 10 Nov 212021 Q4 Earnings call transcript