MODN - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon and welcome to the Model N’s Second Quarter of Fiscal 2020 Earnings Conference Call. [Operator instructions] As a reminder this conference is being recorded. With that I will now turn the call over to Carolyn Bass, Investor Relations.

Carolyn Bass

Good afternoon. Welcome Model N’s second quarter of fiscal 2022 earnings call. Investor Model Bass, Carolyn is Relations N. for This today Blessing, John Model me Chief on Chief Jason call the and With N's are Executive Officer. Financial Ederer, Officer;

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

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

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

Jason Blessing

good thank our Carolyn. Thanks, afternoon today. you everyone. And joining call for And

EBITDA. the revenue, results services quarter adjusted outperformed across revenue, subscription key board, professional including revenue, metrics, all total and second exceeding Our guidance

very half. metric strong positions exit another year. combined rate of key the SaaS had anticipate accelerate second our we also QX which well to at fiscal as our when XX% second are to And a with discussed, bookings this we We strong as quarter, ARR growth us in previously a half year performance for targeting the

will companies John you are closed when confident milestone. In we hit of we important on As in in that track hear world. fact SaaS guidance, gives the two largest transitions this pharma we the QX, with are to

meaningful conversion in recent have shared as transitions we ahead to first levers expect SaaS the on-premise coming growth that am importantly, half year we're customers well our calls, of to a is future. cloud for also the SaaS a internal XXXX Even As non-SaaS of which from share plan transitions, on amount driving pleased are of one for pivotal our this seeing the we our remaining upside this more I year we to deals, be bookings our transition year. of bodes accelerates. which

compared rate our completes view we a accelerating on-premise in business success continue very positive model. evolution seminal as event recent transition we to as at also Given this seeing the a Model trend transitions, Declining we decline are and SaaS a to to SaaS SaaS see maintenance is story levels. N maintenance with to an any its

to like business some highlights. share I'd Next, quarterly

is business revenue projects. improve management benefit future partners and am long through of analytics, to security take from to compliance of the equally ownership the off current, with new and the system, these new as outlined we transitions grow in expertise while customer Novartis, how teams always more cost and new growth allowing example a today's transition technical future During for to a and you two latest also start N's to improved roll excited to implementing unique industry Sandoz, The we in Price pleased was come their in one to product our Pfizer the the product. most continue Sandoz are that already solution Pfizer's digital Sandoz states, we N address recall I manufacturers going outcomes. next digital to lower Model State in product and on closely Sandoz SaaS to largest Sandoz’s that together further patient Model rapidly of updates states dynamic the updates. generic of partnering is exciting to of kick the adopt rigorous latest largest benefits: both new another Novartis I started long-time build industry's a have last is and also transformation and about The number our to are pharma innovation, launch on launches of announce world, year. of been that transformation. great the year. of Model am The Sandoz later complete, that been to on compliance SaaS personally and of N with with growing transition thrilled transition, that as secure companies decision access legislation. the be total project regulatory our environment. Transparency Novartis the I their out improve excited and And following and version being we subsidiary SaaS positive is the and very will to am out price a be their who latest case world, deploy a product, the best-in-class companies the very is and advantage the live Management us and more with Pfizer. influenced on with quarter, speaking working support SaaS Pfizer build we this and to transition partner version a And to this time overall signed one may contracting Once nimble SaaS profitability; momentum on and of based project leverage drug on involved decision with drug strategy around Pfizer the version requirements performance, to to see transparency. innovation to have pipeline the will

at high-tech this bookings of team. front half were the first in saw my in execution are On half, activity we driven large our first portion to first logos the has infrastructure Also, the more high-tech healthy starting customers the of a our new rate. our their by in upsell invest a a success in half who year. strong expectations exceeded great and customer by driven by High-tech

of recall, the pleased business. did, than continuing a to during slowdown If this had life high-tech bigger in momentum you sciences important part see pandemic build so our to I'm

the our on a customers. business multiple predictable, Turning our continues deliver This also delivery strength year, all services throughout in I the excellence key to your a value continued margins. to proof as team is projects professional our team this our we time, on cycles, points substantially have best-in-class at given of backlog. substantial in playing to built on expect rapid sales time for and has services, budget

and lead in We continue our with also Model company their help projects teams digital as a our have of cloud flight healthy N’s customers own to transformations. a transformation to portfolio services

can signed KKI platform execute using global them We the to drug's and visualize them N, implementation. pricing highlight great Model the a is through KKI or example I'd process, benefits successfully you. the KKI Model global in we for unified also related one also pricing our pricing Europe. strategies London across cycle pharmaceutical Kyowa N’s is of assess and Kirin customer management price analytics. N. new them new decisions Their configuring effectively logo realizing handle is through several products, throughout different company Model seven collaboration. last live is growing from and With product have of had to rapidly a now thought guiding logo several to year benefits. more winning Headquartered in locations types. rapid KKI successful implementation N another a allows a and a sold receiving Model to XX involved life their XX Western already is portfolios and recently, one price within I impact They a of approvals trends go-lives countries, specialty with centralized allows with and that in XX solution

to investment of our team by validate logos, increased as thesis Business customer Our new also executing as expansions. continues on adding TAM Services well

are our competitive a ability wins. Now to that company development of and a new of in the in offering. continued is with Amylyx. wins to pre-commercial the innovative quarter dedicated we've in neurodegenerative revenue diseases. is attract Cambridge, highlight therapies the was pipeline N needs. their This for Business that of drug I'd fully business the ALS perfect Services is our the strong Services growth compliance and based like pharmaceutical smaller a Model Massachusetts, example one team, FDA Business our services seeking for of in Amylyx management a approval integrated business selected for to we services at and Amylyx to seeing process treat company

and Model and a March, next X.Xs brought TRICARE complement from Model experts Amylyx assist M&A with industry primary expand XXXB. will ways dynamic and N industry Customer our selected deployed educational XXth we're vision look potentially Model of will around of each more world. needs the that emerging allow track and N offerings, to new of and through and Rainmaker Company is we solution executives In to event around other. offerings processing manufacturers thought calling building portfolio Amylyx successful government due launches. cloud Held our At to our meet This programs, will we Annual solution government X.X. future core something software, pricing, including product record I to continue expand be to our N Our footprint of expertise the for continue and This XXX that enrolment Rainmaker deep evolution partnerships. assisting customer and three all Medicaid, conference Model than outlined our is will and with N the in together us business the Conference. pharmaceutical and leadership

will The to offering. second of a our opportunity N software analytics compliment This dimension strong solutions. and new compelling data Model us involves a be and meaningful for a building represents X.X

and years specific unique strong gathered are data expertise our we uniquely transactional proprietary base. set provide analytics blue-chip our from customer of industry think processing of domain positioned for because sophisticated I to

problems of N out be services why complexities business expert. and services services insight are grow seeing more from In final X.X well help of that at team dimension N executives. unique this X.X acquisition X.X this customers headline report a takeaways vertical at we solves. third of expert that solution portfolio levels that majority revenue in our research in continue positioned to that companies software compliance vision. executives key data the be a offerings. annual with and top their was profitable that vast The of ability for to differentiated a of leakage for is state mind of The the be that at team the will federal Model help senior into some and of industries Deloitte's a are direct engaged life have belief specifically growth we and report more concern accelerate state Model will and This of management and can leveraging are Model XXX strategic signature our with amazing the N address over trends we're understand over The surveyed Rainmaker, an will effective to services is and revenue a sciences the regulatory will software compliance current enabled at time. sciences these sustainable of and Expert investors Also the acquisition is Model and life that and N designed revenue markets investment rolled represent the future. It drive are believe for we our portfolio report. our responsibility high-tech. the The compelling to part

also execution customer focused how very proud our levers, This interest replays including this XXXX. transitions, in in growth team global which price automate strong from Transparency of I In first significant The Management Transparency detail get of to event and compliance that am our findings of provide recent accelerate expansions, from all will our expect resulted first the pharmaceutical proud website. transparency we in and State executives as customers Management these companies even industry's customer executing half of performed and State to execute guidance. position pharma as to financial first international. QX puts on John two-thirds results is new our In now and earnings support outlined SaaS more logos, our and of profitability prospects. across additional fact, as that receiving a we've excellent call discuss Price solution and us report We team compliance. half on continues dedication as In enables revenue strong stay and the exit amount new Solution difficult nearly XXXX. of in has state state an on is the to environment. available calls, John? year. managing lot a our of Price I'd how an well to growth Rainmaker to a full our dynamic are includes in software like over update a closing, and I'm very of our turn well

John Ederer

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

strong of both revenue while our we metrics. upside all and by noted, and subscription Jason management. continued services EBITDA by performance cost exceeding Revenue As adjusted quarter in good driven had driven non-GAAP and our professional strength second the EPS strong guidance was was a

the performance we when and improved half for our discuss guidance see over our Our later in the has first that call. strong year outlook the you'll bookings

year-over-year professional grew of also upside financial the increased revenue which million. end our to we $XX exceeding million, range. XX% top $XX.X revenue, by which quarter, the the grew Turning the our to to results end of second to for million exceeded $XX.X revenue guidance And Subscription guidance. total top and saw services XX%

quarter million the to some hiring due other the and $X.X EBITDA year expected guidance than well of adjusted investments. ahead end been XX% of $X.X and a our for fourth Looking for for has profit margin gross was EBITDA XX% second QX margin Non-GAAP QX team non-GAAP gross XX% margin or last margin at well. was XX% QX of to million strong versus a XX% total professional services this year. XX% gross extremely execute Operating X.X% EBITDA versus lower mid-teens. were consecutive that And hitting continues XX% year-ago, as very in that a profitability And timing marks high in of versus quarter, to QX the back for The QX was gross of non-GAAP $XX.X versus ago. QX million. result expenses in again for the last year. Adjusted our the a subscription quarter was the improved margin in

per or Finally, non-GAAP per $X.XX of million net income of $X.XX our which was ahead share, high-end is $X.X the share. guidance of $X.XX

million deferred which is look balance the sequential quarter from in sheet, typically in with of $XX revenue up cash know On $XXX.X cash billings, end as that strong and which of on the at I very equivalent, collections. change was we some you December ended revenue. plus million the defined the calculated

vary For metric RPO, total cycles stark and on a can other in sometimes typically which up are the measure QX of factors. in billings in on depending were calculated a year-over-year, seeing moment. We which is strength we billings focus X% RPO, GAAP in is I a will backlog. our discuss contrast which Calculated to invoicing

predictability this health the As believe business. of meaningful our a we underlying of is more indicator and

increase provides for XX% grew Turning of to year-over-year. $XX of growth The of remaining year $XXX.X The non-current $XX $XXX.X increase future $XXX.X QX, over first RPO million reflects the or year-over-year. this balance total the performance the $XX RPO contracted the bookings was better at our in RPO million million, high XX% XX% And visibility obligations, was strong million, and balance which revenue. million end the an or half portion million year-over-year. representing performance or RPO an or was current of of

our-daily in for continue to quarter. a value SaaS year to we To premise migrations, revenue the on recent annualized the disclosing indication have during revenue, be in in of by most begun reminder, growth you offset strong ARR. expect we success declines as a SaaS, represents from of better cloud revenue maintenance As accelerate. give transitioning This SaaS to the subscription our

quarter as the of in up noted transpire which anticipated we on from calls, with a on comparison ARR million This quarter, last did in XX% second basis. was we've a our $XX.X standpoint. couple year-over-year in more SaaS As finished earnings we QX a challenging

XX-month previously net were these slightly as we below growth numbers was expect SaaS While recent again both dollar on trailing of accelerate half commented trends, but our at the retention SaaS to growth second XXX%, we the ARR XX% target. and exit over our year

guidance. our to turn me let Now

$XX.X in $XX.X million total third in $XX.X range count $X.X to million, on the range per to in be the range of $X.XX For fully $X of share, of diluted range $XX the Subscription to a EBITDA be million revenue million. quarter to the shares. $X.XX non-GAAP of to expect million revenue we be XX.X to approximately million and of EPS adjusted to million the based in share

For $XXX range $XXX.X revenue XXXX in total our the we full fiscal million. to of to million be million million range the subscription $XXX revenue year of expected with are to $XXX.X to increasing

are In adjusted to EPS XX.X a count to our range range of $XX.X million raising $XX.X diluted We $X.XX shares. share or much pleased growth business non-GAAP profitability all also acquisition share, a exceeding cash Running on and summary, the fully generating while million DNA. make based in strong able responsible this our expectations. million that outlook an generating, part EBITDA of for approximately navigate $X.XX been of to a maintaining is flow I'm of balanced to transition a good and we've very meeting profitable per

towards good for adjusted our SaaS to growth transition future at ARR we're look Rule EBITDA is While this in the progress XX of midst proxy the plus margin. a

EBITDA continued growth ARR us put objective. at FY growth implied XXXX XX%, guidance our of XX% illustrative of which margin SaaS adjusted targeted profitable would is from our our Looking at today the plus

operator over the turn the Now to any questions. call for I'll Operator?

Operator

Instructions] comes first [Operator you. with MacDonald from ahead. and Thank Please go Needham Your Ryan question Company.

Matt Shea

Ryan. question. we the Model on will and allow offering. N is learned X.X, create for hybrid ultimately and thanks This that to Hey, Shea customers on for mix create touch that a match X.X to Matt Wanted Rainmaker

you guys So then creates that the time? curious hybrid couldn't small upsell opportunities fair of then this after expect clients and these modules to maybe what over you kind it and start that go is can before,

Jason Blessing

Yes. good evening. Matt Hey

And But assume I few logos. a like or have new interestingly revenue well business a compliance seen didn't just in really house. our to example, of the hybrid, N now and our did to part after we've was consume mean Medicaid what business by where have they being services was signed So Model we the as government an able primarily enough, pricing and was through with – management deals software thesis investment services. with you business for as use and customers claims processing as in expertise not things go

so And be very attractive. services business they found to

again environment, set And we to really specific to broad about hybrid how offerings. so requirements business we that the talked to offerings of their want reflects our we when and it they have and customer's that that consume a such tailor want fact needs can

Matt Shea

then that levels. we're of the it. down the to helpful. peak services That's some due appreciating starting business Got see relative in biotech, And funding pre-revenue of your kind to XXXX in help some biotech to part those slow expand TAM

opportunity in whether or that any services to Thanks. tail poses kind it's there's the curious you? if of long Just the front not, in of is immaterial enough segment, that to funding slowdown still or risk if a broader business that relative

Jason Blessing

and business of it's accelerate more more and We've the and untapped I reflective in been seeing market Yes, big think it's underserved our is. latter. how that actually pipeline services,

down part during got we they but may invest. So a broad a great is they actually I started that the [indiscernible] FDA a script be their approval and market cited a customer signed with stamp to the still customer approval example of areas in of And then of working process. And selling. that that Amylyx started when while bit, certain slowing continues there's

Operator

with ahead. go question Please from Joe Meares Truist. comes Next

Joe Meares

products any about Hey guys, you talked testing Thank to you. the there, yet? are advanced new feedback early about if those customer At engage some thanks available products for and for hear question. we services Rainmaker, customers taking love including

Jason Blessing

that our internal leveraging Yes. uses just in one products testing The those of have stringent consuming deal about services advanced single release. in a are audit constraints we our customers with every the help today new the around and services available to cloud marketplace

been a and help quickly, – services to enabler testing So some has larger product It that's better functions it's it's of it's on SaaS be designed something product our next the new and we'll transition features and navigate really engages the consume year. a major system; advanced roadmap out the of actually users that that's is more rolling design, a and

Joe Meares

one was then ongoing And your you of Rainmaker help wondering been how products constraints. this Thanks. so the about in talked – you any seeing at if space demand much. you're a high just which the tech follow-up, Helpful. the about on as trends affecting could going in talk I what's increased was your if because Thanks here of of chain? supply supply

Jason Blessing

customers certainly most with helps high make – tech through are management our incentives product place to profitable, because they constraints in want the that to their have Yes, most products they scarce right the push channels. chain reliable data supply sure channel

management products high to these said, an solve and is the channel the those I So seen companies. business, as data we of have top-of-the-mind uptick issue one tech in very

Joe Meares

again. Thanks

Jason Blessing

Thanks Joe.

Operator

Craig go Next Chad question Please with Hallum. Bennett ahead.

Chad Bennett

of and terms respect ramps that upcoming as and my questions. kind taking and can CRPO for for dynamic John, little on a or care quarters to Thanks just expect the much with give you structure non-current, you as of maybe you, RPO in to just share there, CRPO? between first us Great. Delta deal in what insight, one whether to deal bit maybe

Jason Blessing

and particularly the visibility the is I terms on actually happy metrics to at next of months but year-over-year at subscription on there growth both our in total – say RPO current XX bit. the And would both we obviously XX% great number that RPO revenue, Yes, things. a a look of what us sure. solid side No we outshined gives

to metric a overall then on that's seeing total standpoint. really booking RPOs us. the we're business the an and And goes the that from of important side what health So for

tend One three of transition the to five those for to the longer It's not nature. SaaS in larger length. and those years be deals big drivers to deals term be behind in that is uncommon

then those into year. number so contribute a the current And the to roll each and quite number bit total

Chad Bennett

So that should half the a see deal compress the kind CRPO that of second accelerates where tailwind? and and kind John especially year, it Delta we of maybe of the maybe and a if of year next you bit, the the ramps are more

Jason Blessing

would that Yes. guess, might number those long-term little I those I way say rates our maybe think time each see converge; total about growth in converge would RPOs bit. backfills RPO. current a numbers you year over The in the the effect I RPO

So got the months that bookings you you consume XX fill already consume each in you’ve for place current that next as number RPO that in will over year.

a why runway And the us for pretty visibility that RPO years. of good long-term in important number think the gives so that’s next total I that both are several

Chad Bennett

one maybe Got then it. And follow-up.

it but maybe was I it think Jason, was John.

into in improvement how go-to about the for like of, or and any kind from and kind of Can the significant quarters word that’s products or up-sell wrong more just efficiency maybe last talked you of right you migration that's type Just market? said the talk about in standpoint materiality of terms of Thanks. you guess maybe over few cross-sell, I seeing been net versus expansion of kind are dollars. from net add-on expansion I cross-sell, a you up-sell think like terms

Jason Blessing

I'll Yes. take that. Chad

the I and customers can So transition, been that importantly more plan as get past SaaS those I’ve what's number the we to to a is SaaS XX from are months of part to N in just N the are back bookings story bookings material products value? our customers out in but have drive addition great that think discussions catalyst said making retail out way significant really our And contributing consume transitions. on front have become trend we're of not a encouraging our things even to and Model that SaaS a calls, a in a now up transactions what other not Model ago, of of

look transparency, a services last of valid And data, able we're it's our the price global to – support it's price SaaS things bundle in couple I some when quarters, so of tenders management, contract. like like enhanced over the state with back business global things offerings global that products

trend been of said the just SaaS back thinking, have in catalyst I front transitions to a business as So, these customers. that like great as I in And you a it's get probably been were that of N we doesn't have that a list, – customers, sell lot can current into divisions. just moving that include our rattled even we footprint off to other sell and Model things different

there's at we're nice base. have into opportunities across selling those dispersion So we all different look the of a as we what

Chad Bennett

the on job Nice you. Thank quarter. Great.

Jason Blessing

Chad. Thanks

Operator

Next question, Joe with ahead. go Vruwink Baird. Please

Joe Vruwink

maybe activation. have elaborate but prone the how come maybe transition I deals. deals Can you've Yes. we've really just been big than N of seeing? that Hi where some from on think period topic, everyone. I'll a had that bookings multi-year described near-term you to impacts maybe success ramps has that time what signing maybe stay on the same financial just differently deals, more you the are been Model portion model in deals your of non-SaaS

the of this creates kind it the top more certainty near-term So tailwinds longer on of transitions? term with

Jason Blessing

So, Joe, question? – you restate could the could you could

Joe Vruwink

sale, it's it year if might here. might where profile quicker guess, products fast your, near guess term and other I to seems activation good How of activity Yes. products I so of the types the upsell, the reliant is prone that be ultimately? driving to cross that growth about points if bookings the heavily a more Basically transitions your earlier execution influence be the if to that you and get not gist on of these are

Jason Blessing

really Yes, Thank That's okay. Joe. helpful, you.

guess I So of there's a things would there. I say that couple

the this of to company. some back I And goes started at when

going we $XX with products to multi-million the in new of that a after transitions. and some even [ph]. was have talked four about SaaS been have this dollar, been that million We three we've we've space expats And the base, customer pre [indiscernible] white our

unique that capitalize had opportunity, but on we was or an from it, staffed go-to-market thought to a that a fact motion up the I so And perspective issue. selling weren't

when And with results sales and getting certainly in cloud, turn down the to in it both being terms goes so to sell. what as those to these now out, around get and bifurcating on effort multi-year able you our, product, is hunters And force implement, seeing we're farmers, teams of customer that some a it to incremental point of effort you new pretty value sell the high dramatically. products for a more

that of getting just uplift that cloud and yes, upsell onto as of organize characterize cross nice happens So, how a would from a when transform you sell we're market things company. some into I what we by-product

Joe Vruwink

Okay.

that's professionals of great. about level. Are growth running to plans maybe broader address against running the been at your that would It just or recruitment huge How go specifically the utilization maybe seem a you you for going demand hire, your about going. Okay, is influencing perhaps ability think up there have you space. the kind service Life team of how for how can high these trained really is forward? competing services kind And very Sciences you

Jason Blessing

Yes, that's Joe. good also a question,

year to coming this year pivotal last in into we year transitions. So, was be knew going a SaaS

been own hiring SI work. ahead and to is some very deliver. SI two that do practices say I I is the three things way right sure then we that we've more as see bit additional of did we And upsell. it these our that cultivated, their the have, on just about, lean were network were cross SIs there to think allowed significant pretty talking period combination through good a forward, then we as this, path partnerships of that's hire got in the the But would make will thing it's of and partnerships as during could that team organization we a the services And with that really system. N One, the bigger in I the four we of projects of SIs the did or sell flexibility capacity with as characterize customers probably bigger we transition backlog that. some that and little field SaaS deliver the robust us the the well and we Model work have did ahead very our of so fulfil to great business. some And some we strong what work to second

Joe Vruwink

you Thank That's very great. much.

Jason Blessing

Thanks, Joe.

John Ederer

Joe. Thanks

Operator

ahead. [Operator from comes Peterson Raymond Please James. Your next Brian go Instructions] with question

Brian Peterson

Hey gentlemen, thanks for taking the question.

So, maintenance sell, have lot kind for relates that's cross see these some these of it it what's adoption to A are understand, a be you make we not first than like, SaaS you your I to products what that I more are lot want obviously of just I'd across as broaden of products like curious driving is of that bookings. transitioned guys declines historically place as some there's the new been Greenfield kind done? enough to of deals? sure customers going for in portfolio. a

Jason Blessing

of global maintenance course, the Yes, footprint core transitions from. of is SaaS services the price of is there product on-premise. some and no SaaS; like products, tied services, phenomenon legacy that there out moving that really business is enhanced are of our to some transparency, customers then Things state related to

to Greenfield, with your is deprecating it doesn't and use terms have along maintenance I guess, that's So any it.

Brian Peterson

how services it. the model services right made what's you side, mix. maybe guys the the of there. know like expertise as obviously Because the way there with the that? about at Got I think think on just kind implementations. subscription Rainmaker, Thanks services some versus intensity about guys. is think domain to a fully much we to And Jason. over as I'm out announcements just isn't Thanks, about Maybe cloud, long-term curious transitioned

Jason Blessing

haven't long-term attach model, net that and services, we've that in implemented new of we've customers signed seen kind some can the what you anecdotally I Yes, tell of the rate what in more on like our customer's requirements, but complexity in SaaS guided we much a company. $X.XX line more it $X.XX to just And footprint, of kind the would but see on and you of depends native subscription. a of is

Brian Peterson

Thank you.

Jason Blessing

Thanks.

Operator

go please comes ahead. question BTIG, Next VanVliet Matt from with

Matt VanVliet

price might taking in what pull? the or And been trying of Kind contracts you what negotiate have of contracts your levers both as expansion you customer to far? has SaaS inflation are Wanted to of what sort thus Yes, reaction you from increases and deals? in question. a hedging you or type dig mechanisms other the thanks are in of little seeing terms that bit potential for

John Ederer

Yes, this is John; I'll start in on that.

perspective we to costs. this hasn't expense where the employee a guess see in I huge from for of side a really a been general, broader might us and is factor date on inflation So, things impact more on of little the bit just

years if decades. an market not for now been I for Although we've tech would inflationary argue in several talent

for par think been the course. kind of So that's I

things some renewals we're push good a of traction getting in terms that doing of we're increases on able we been customer have to regard. price through that actually from standpoint, In the and

that's been positive. a So

we've I not to net-net, fact, little And so from bit. been a able concern benefit that a inflation would been and say in it has

Jason Blessing

add what would services recently John And card professional well. nudge did said, up our on also as we I to rate

Matt VanVliet

new that, Very or and the there been it around helpful? judge of be of I like management what Anything of feedback kind the confusion terms looks would any relationship that business customers level Rainmaker, overall the kind of Has chance coming strategy? really how what would Okay. helpful. strategy there just exiting And of X.X guess then, sort educating out in development of there? within for customer been you long-term of there? And additional has

Jason Blessing

in I number strategy been of year. we've would feedback. last Yes, customer this involved that over so a the X.X direct work the is large with testing our say, customers this strategy, And did fact, around some the road something we of

in very excitement So some with most I particularly given customers, areas. of customers of there view strategic as partner has us level of these key think been our a a that

to them. portfolio seems consume resonate well have they a trusted with to broader one so services of And from advisor can that

of big as questions As customers, surgically of the, end the in broad-based as more upper I the me mentioned well a has was customers, mid-market. the probably prop one at small market, of at and that asked well, but resonated solution value that earlier services, business

XXX I the this has discussion changes, of collaborative were the existing those market is customers. this final a tally and both it personally regulatory customers. own strategy. validation And with we said, some dynamic state our new price, been right leaders that published there at we largest over And that in to on these was our non-model how things, those very pleased the of as I well did given And was now I particularly Rainmaker attendees. around So, on year. good by a was believe effort of topic our prospects, products turnout The issues with as like side industry as were was were attended. sessions sessions the well oversubscribed. addressed of transparency very big that King Spalding of some and

of with at pleased very some on and show. a I was I these key the was attendance So, And topics. engagement virtual

trade-off. you we a attendance, the little get couple in potentially get getting touch on harder a ahead that's summer years. that we a people and But again, and in our road starting a us guess got office haven't getting customers I back to people. back better but So Maybe we busy visiting are to bit the out are of seen

Matt VanVliet

Thank Great. you. right. All

John Ederer

Thanks, Matt.

Operator

please more go one time with Joe We for ahead. question. JMP have Goodwin Securities,

Joe Goodwin

congrats quarter. Great. the on Thanks And guys for taking question. the

quarter? was percentage the deals what wondering in Just of the ramp

Jason Blessing

deals lower than ramp was pre-pandemic. of it was actually Percent

moving, we during Joe, really we're services to about and the talked or much we've at as if using used pandemic. that we've that a fuel things as keep as them not sales said both So, And all.

pandemic say at in something than And is the footnote when so levels that I pre-pandemic this point. would it was lower Model stories a N

Joe Goodwin

on I RPO, just from Understood. note any comment? decline to Anything there, sequential or John, XQ. mean the current

John Ederer

rolling the model, that timing would the the mean, maintenance. into of contracts playing just particularly through are they and only I thing that be No. is the how

the then the we around course off the bleeds over our And lot so and of year. see of year and calendar maintenance that a around end renewals fiscal year end,

And probably biggest so, factor. the that's

Joe Goodwin

Thank you.

John Ederer

Absolutely.

Operator

now over Jason to concluding will turn call the I CEO remarks. for you. Blessing, Thank

Jason Blessing

Thank four to today's Model things. and a celebrated my end to share you, operator. on a call personal N I at just wanted anniversary note. few just I year wanted

the First is have I of this ever far by all, best had. job

companies core absolutely Our plus none. corporate in enterprise my I have are over at amazing And culture some second XX and to our worked software. values years

our Second, are been that it companies customers, with truly experience are has work improving human that to absolutely life. companies an quality the amazing of

out it. seen couple over play coming side apply are years my companies to rewarding got Something company years. such it side it's XX at with of native amazing take rewarding incredibly last the still of working work backside great we've of been now been plus just the spades that's N durable team here with of, that expertise an really to transition and Model that out by at drive years SaaS to business then certainly model And work finally, many great a the and ahead has build and

you So call. again attending our great And thank have everyone for a night.

Operator

teleconference. This concludes today’s

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

Model N (MODN) 11 May 222022 Q2 Earnings call transcript