Earnings call transcript Q2 2023

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Operator

Good afternoon, and welcome to Model N's Second Quarter of Fiscal 2023 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

With that, I would now like to turn the call over to Carolyn Bass, Investor Relations. Thank you.

Carolyn Bass

Good afternoon. Second Fiscal N's Earnings Model to Quarter XXXX and Call. Welcome for Carolyn Bass, is Model Investor This Relations N. Ederer, on Jason Chief John Blessing, me Model Financial With the N's Executive call Officer; today are Chief Officer. and

and third call performance was second release our quarter regarding outlook and The the market our press earnings and provide year financial ending is of you for issued on today's Our posted purpose our XXXX offer to fiscal close a of at XX, quarter of fiscal today is XXXX. primary information website. with September

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

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

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

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

Jason. let me turn to that, And the call with over

Jason Blessing

and across our profitable call that beat second our quarter another underscores am to revenue exceeded growth. total professional you, pleased expectations and commitment We I services revenue. Thank to was today. strong and board. for This subscription welcome quarter guidance our revenue, results Carolyn, to the report driving

XX% by driven by year-over-year. also grew SaaS Our ARR, which metrics strong, were QX SaaS

business that In addition, difficult very to are transformation model driving, of XXX% our dollar environment. macro and especially a our I retention accelerated year-over-year. we SaaS net am the proud team in

impact address Given often business, proactively this, I the this to so about macro our question. would I of like asked on am the

serve end Life and we Sciences secular X of particular defensive times with a markets uncertainty. naturally in First, resilient vertical tailwinds, is in macro

more that IT of Second, and tangible That both were the investments get prioritizing we both ROI to N's applying in we said, to incremental core we help customers respond are believe cases, value Model to companies companies during spend, that additional some that played quarter, proposition. serve deals deliver scrutiny in operating see and approvals dynamic done. verticals some did to required environments, which

this financial EBITDA expansion further Despite focused XX% We performance adjusted highlights remain also and long-term our year-over-year. the challenging with quarter macro, profitable driving while business margin delivering growth. execute finishing on our to ability transition our growing model

In fact, regulations. several on increasing newer focus resonating the pharma than given ever are of complexity now our and more of profitability solutions

a of new customer healthy We and Next, highlights from areas we expansions, Success enjoyed was business. by contribution the another QX quarter. to the closed I'd signed also SaaS business in like renewals. all driven some the numerous saw large of solid transition, from share deals,

transitions. Starting with SaaS

that regulatory to Takeda's the our and SaaS latest was largest and Model maintain help release; pharma XX Takeda, compliance example immediate business environment. sees During Takeda the testing drive commercial access on customer Inflation and our in solution our improvements Takeda. with to value ownership; compliance new including to features to N in access XX quarter, those customers helps which the offering with Reduction one them companies Asia partnership the including longtime and lower updates, for Model support we total company their decision of regulatory is top cost renewing will several operational validate the signed automated Act; based an suite, that factors, world. the N a largest pharmaceutical new of complex in move following: in new is the over to of cloud a to increasingly

make a During acquired expanded footprint business in Amneal U.S. generic at Amneal our specialty QX, we also a pharmaceuticals recently company of its and boost generic to broad AvKARE Pharmaceuticals, that provides global portfolio possible. the that healthy

initiative, helps to the efficiency our management is N support a revenue strategic how objectives, of Amneal their Model example execute on in deployed the N case, customers AvKARE. This this business the part As team's needs operational of latest Model of M&A.

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Turning to professional services.

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the QX With turn and John financial that, half guidance discuss the provide of John? to year. I'll the for second results our call to over

John Ederer

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

SaaS adjusted XX% retention stream posted higher. been delivered SaaS QX metrics our the again to all particularly guidance declines noted, profit our this business of is SaaS has a driver of The year. transformation overcoming grew our both to revenue of SaaS Jason I our last QX subscription the drive our exceeded ARR And As overall results performance key and the net very that we We overperformance and EBITDA our top and metrics. pleased as in now model revenue strong bottom growth maintenance in was quarter, very by solid line. versus on

exceeded Subscription Total end the $XX.X our also our our end which to at financial exceeded increased range. top and of the revenue $XX.X of to guidance. million XX% quarter. specifically by the revenue million, results guidance XX% grew second Looking upper for

$XX.X Lastly, services to XX% much which of team a our at guidance higher-than-expected the grew ran revenue the was professional utilization well rate. above by million, end as high

and our in earnings discussing provided results In release. keep that a of is full please reconciliation non-GAAP numbers, be mind in our terms we'll of our profitability,

subscription in QX quarter, of representing For year, a QX compared total the gross a margin. prior margin the second year higher-than-expected overperformance total services was subscription revenue an XX% services of XX.X% was was XX.X% SaaS XX% improvement on last Non-GAAP in also profit as margin million, percentage as points. margin $XX.X The in QX professional QX gross non-GAAP year. versus basis professional revenue. Non-GAAP compared last in gross XX.X% of XX increased drove to utilization XX% of to gross

the service mid- to still ahead, Looking expect normalize the to margins in and year XXs the we over of professional range. high second be half

from EBITDA EBITDA quarter of for compared XX.X% quarter range. an increase XX% the ahead Adjusted second $X.X last guidance to fiscal for of the XX.X% well our improved XXXX Adjusted and million, second the to quarter year. was margin of

of an million, $X.XX, last increase of share Finally, of $X.XX XX% high $X.X non-GAAP year. above end QX the And was per from was non-GAAP guidance. our net which was earnings income

earlier, mentioned I results. our our overall drive As critical is starting and hitting mass SaaS business to

an XX% or SaaS increase For of reached last $XX.X of QX, which year. versus million our was $XXX.X ARR QX million,

SaaS addition, our XXX% and in upsell net trailing cross-sell In to XX-month retention reflecting QX, hit successfully customers. ability

acceleration been QX SaaS our last activity. and SaaS over boosted retention year. of accelerating this that cross-sell we've transitions growth have in year a to transition seen number, XX% occurs also a been our year, ARR the ago last SaaS that has and from has the around The benefiting we rate similar quarter as metric XX% Over net activity from upsell

QX couple on calls, revenue is XX% mix in our revenue, of earnings is last our SaaS a growth XXXX. as revenue rate of fiscal our subscription as and with subscription of revenue gross As continued subscription XX% and benefiting increasing XX% that proportion our compared our representing we've total noted SaaS subscription margin. total as QX well in This to shift overall as for trend

sheet, the of $XXX.X terms million balance ended and second was cash the we up which quarter from million QX. In with in $XX.X equivalents,

versus and million receivable was debt, proceeds from increased net to our the large which the increase to during QX. in million in the The convertible transitions During invoicing was we refinancing flow record-high Accounts SaaS of million, anniversary also quarter. up generated $XX.X cash due in billings we several as quarter, million $X.X from added operations. receivable for occurred accounts sequentially $XX $XX.X

revenue $XX.X a by At up was QX Current up increases deferred million maintenance offset revenue. been of level, deferred declines high $XX.X $X.X we've deferred SaaS and million last in sequentially partially versus year. million seeing revenue, versus in

In revenue, to deferred also as of RPO, performance addition or on we the our future indicator focus obligations, of an predictability remaining business.

was up our year-over-year RPO of million, to $XXX.X basis. balance up XX% portion total growth QX, our a which XX% The For on $XXX.X was was million, of year-over-year. representing RPO current

is our rate current more has RPO. primarily which This and years RPO consistent value our remained last tend RPO few line current be slowed in commitments transition the in for extra the with to of to growth contract RPO growth is of SaaS the over now longer-term years, has the total couple the years, our due total add the previous reflected last total in over periods. to and deals While

the guidance for of year. ahead the remainder to Looking our

prudent. environment, Our outlook reflects feel in the uncertainty which is the we macro

had of subscription the total the summary, and $XX.X to million. revenue the $XX subscription In range of to million million, to We of $XX.X with a million million half bankruptcy services of an $XX year. revenue QX, expect be million revenue unprecedented in over in $XX.X to we second in to range customer professional $XX.X the range headwind that will also small be the for growth

$X.XX range We the expect non-GAAP $X.X share based on for million approximately to of adjusted shares. per we million. And per share, fully EBITDA be to a expect in to of XX.X share million $XX.X a count earnings range diluted of $X.XX

year revenue strong our full QX. we the of adjusted for EBITDA, performance total and the raising in are XXXX, For fiscal reflecting outlook

for we expect subscription our $XXX to to be guidance. we services of For range the $XXX million, are range of In million the to range $XX fiscal increasing in and with subscription revenue, $XXX to to of total million. revenue million million revenue and range the $XXX in the summary, tightening be of end bottom the 'XX, in professional million revenue $XX

$X.XX be $X.XX We a to in approximately adjusted of fully shares. EPS the range XX.X range the expect million of count share share to million per non-GAAP in EBITDA $XX to on $XX of million be and to based diluted

context additional guidance for regarding remainder the Some fiscal of the our year.

First, is the our of guidance transition SaaS reflects by ongoing offset revenue. maintenance partially strong growth driving our which declines but business ARR in steeper model,

expect We XXXX. in continue to decline maintenance XX% fiscal or more by revenue to

transitions. long-term levels to more difficult. SaaS ARR growth our the do while elevated We discussed due on the target guidance and still last expect Second, expect last to we've our we few more not the increasingly be below XX% several moderated get ARR, comparisons we in as growth QX SaaS provide specific on year-over-year SaaS that have above seen over but as we QX calls, quarters of

remainder calculation we models, combination the our version of for and year. first shares our results QX year including half using Third, of that the in our give adjustments and outlook notes the specifically, our consistent impact the a the we elected report accounting the of our second More for the reflect XXXX our convertible debt XXXX you the of consistent for new the QX for have have remains your debt. and convertible of the view to quarter, what of updated an settlement treatment both is the method. settle outlook our notes refinancing and non-GAAP of to To outstanding provided with EPS

deck our the in supplemental website. IR You can find table is on posted that this

very with we're our the track in believe execution and we that summary, are on QX pleased In for year.

SaaS We our our improvement strong SaaS our remain to growth retention, SaaS momentum as to build in and business, continue by profitability. on and we evidenced ARR net committed continued

any questions. to operator the With call over that, turn the for I'll Operator?

Operator

Instructions] from with [Operator Joe question comes first Vruwink Baird. Our

Joseph Vruwink

question with other a that things of possible the guess you those to question, forecast know weakness it it you updates is some doesn't on making where a good. what but And just going know answer, there's FY I today? This split like at also fact, around some hand, planning, to tricky like relates still and seem like pretty just just might factors I'm given the cRPO up the the looks in to the customer yet, But what X seems to of alluded as you're 'XX it and bankruptcy. be you you're much looking really it trend, been changes

variables. to distinguish of the between trying just different kind So

John Ederer

this Joe, is John Yes. speaking.

to So just we specifically. we generally parse I environment, and it felt the kind macro guidance. we method But that's for us when like down I focus difficult think we in prudent we looked and way be to the asked our can and our it at was when you've today, forecast what looked of on break speaking, provide it'd our typical at think see

the And so small that the customer when driving outlook we uncertainty adjusted that the year, our and guidance I to that a gone will increase bankrupt, into we focus revenue headwind in current we has continue looked outlook note for environment, and and from EBITDA, we we folded at provided economy macro all a coming would total for our may profitable that the did. did growth, the bring. whatever of on

Joseph Vruwink

specifically the sizing in and quarter. front. looking bit market some maybe Okay. your I materials, this opportunity evolved That's on detail your that a at the noticed and maybe XXXX has more helpful. since market international how change, received Investor just just there's And investor update then Day opportunities the a

question. a Just

Model isn't on be growth subscription emerging there a pace. that markets effectively? might that transition is your over, at Is what reason, once if is growing at international front? to high the teens And any calling go might similar investment What be needed more it investment needed the after opportunity out pace? sort a high of teens N You're of are sort

Jason Blessing

are Jason. the I'll this for that. you question. correct. Thanks And Joe, is answer

to years, X-plus our in our is total power this variables has market last the and a the market as Over few changed, there. ability One and pricing addressable been grows. there's grow

a now on and And Price footprint Management, also Services our operations company, Business things being point on to expanded focused as and we've Global and really build international in in bringing that launch Secondly, changed and expanding team well Tender you having products of Management as predominantly from Europe. companies That's to some focused further excellence the out, Global TAM as U.S.-headquartered pharmas done the pharmaceutical market the has their new there. then like M&A products. our small

seen in through we marketing not you've have But sales static as been within a about the to update, expenses. since the out company, thinking has step best and say support environment and take to of to advantage I a of incremental aptly get you in these new have that change framework been that of our some starting it's opportunities is It's our growth. levels. investment into and as So investment to of and an last some not also way that this it think the also current would investment disclosures. product some noticed, been really that

Operator

from Morgan Hettenbach Our with question Stanley. next Craig comes

Craig Hettenbach

motion of the the go-to-market sales focus transition kind about feeling of how and end the more you on year you the also, then as and see to phase you're next by SaaS the how about talk growth? you Can upsell of completing shifting cross-sell importantly,

Jason Blessing

the question, Yes. Thanks Craig. for

of things. couple So a

substantially transitions, currently remaining all, of about really December we'll customers we our First with done on those transitions. good SaaS projects any progress this calendar And or by still get current. in of year, on be be flight them to will expect we feel

upsell the to us Price that SaaS about products retell as actually that reengage talk State respect us we've market, cross-sell, Management, upon base. the have With great motions couple. really in N customers, of improve story, the new perfect for helped our cross-sell, about and around motion, the opportunity some with built transitions been upsell we've talked past, brought XXXB, Model a in things the name a to and to particularly has customer just Transparency And to

better SaaS usage live consume product are to as And actually some in we've that SaaS footprint road customer transition they cloud position other products. and transitions and the with cases, incremental catalyst multiyear seen map take set products incremental in in to the cases, drive then to and an has get in up a other account. the And been new a in

Craig Hettenbach

out remarks and I it. been Got terms of as a more quick the until prepared then some headwinds, mostly this in point, follow-up, you've think And up cycle. macro just the sales kind about comments and And just in disruptions immune of Is little call of looking bit for just outlook? you're macro there. terms you'd around certain to in in anything how else your customers a maybe you're breadth out was more or of context factoring it the what seeing the

Jason Blessing

Yes, as I'll one well, take that Craig.

getting obviously, So days last are macro. asked me, for and probably or these the quarters, earnings public customers companies -- every about couple the on of excuse call

me, so to way a topic. think about wanted address color of just proactively to And I bit And talk maybe verticals. best little is more each a that you to for for little bit the the add I

It's -- through of resilience cycle been Life the Sciences to in. a very through healthy. And current that be the lot feel we're shown continues we that and pandemic

hear between State I compliance industry and trifecta Price things the dealing cetera. got customers Reduction customers XXXB, people Act, Transparency of there the issues are of Inflation Some our this with et rules, we've from are

so which XX% And is is resilient. pretty we particular, revenue, that in vertical our feel, of

approvals do to seem the couple the it High but in see backlog, of products that Tech, a benefiting of demand. more the in are through cautious new some companies And shoots, the had more conservatism additional in heard off that said, are semiconductor and semiconductor year launched." we -- throughout we a Tech half first "Hey, the high did companies get nice that we project innovative even we've developing in to High particularly general that see That are in of customers that little and heard from on in We become buyers Tech did go first green years, a half do saying, deal need little High year. last this

again, proactively know asked to wanted question So really was today of it company it's provide because proactively us on the color. to just some getting commenting we every take and

Operator

with comes question Nick from next Mattiacci Craig-Hallum Group. Our

Nicholas Mattiacci

This is of maybe Chad Bennett. the Nick half the year. level on in activity of for could you John, just you expect migration clarify the second

half, that year-over-year. ARR Just transition way SaaS looking new contribution kind at net this growth be think like there year-over-year? Is the could in new year? of of we it looks the in back SaaS just second the half down the bit in difference quite net a to a about Is due the non-transition can

John Ederer

Yes. when some our questions, I'll we But comments color look and script. and Nick, beyond the you good at SaaS to in give try some outlook additional ARR QX year-over-year think we're a in I particular Those are for last in QX is rate driver year. year, what for talking due of that the to the keep about in second mind the big growth and really the half

so had provided. look hence comparisons, of the roll those harder, a we year. And get the at But a last through continuing year. to to model SaaS extent start when we've we hurdles that activity the transition lot year-over-year commentary some this lot It's

that a of the folks numbers. lot been what this, transparent understand and with and we of it's is attention, just wanted metric if step dynamic gets we're to you. was be do at to all trying from I we We know really back play the underneath And accelerating, this think

Nicholas Mattiacci

professional Can even us is Got so what sequentially for for help It then to expectation decline it. year-over-year what's services on that understand like guidance, QX both the just and expected just And to the revenue. for more line it looks QX. item driving from implies you specifically that decline?

John Ederer

is vacation our There seasonality in typically services business in a with cycles. professional QX little Yes. of bit

from year, I look And you'll think you the if pattern at QX, see so to last QX same thing. the

Operator

comes question Ryan Needham. MacDonald Next with from

Matthew Shea

question. the follow on to up strong is macro Ryan. Congrats a quarter. This on on Wanted Matt Shea for

a So helping how confirm. see market in than a that hesitation bit to and sounds wanted do And maybe you pressured some conversations? Tech that in more that the High Tech with Has High maybe to consistent partnership deal right scrutiny more like It unlock unlock Impartner mind, then Life is now. been or Science those trend? the of some of pressured

Jason Blessing

it's Matt, Yes, question. a great

are about over we've the into right. a more demand large I of macro, us. with So in pandemic talked the years Sciences with to buyers' off terms X X consistently continued or kick seen durability from and Life projects have mean kind last you in of what willingness and now we definitely uncertain

between least the comparison of of in we still conservativeness So it more a think as the year. relative this strength bit the of first X High at little again, exists, seeing and are, half Tech, in

it has secular it said, we're That vertical Impartner partnership believe this one, that nice -- in. fact the excited about behind we out macro current tailwinds High environment that the reflects our and get even we're to our of commitment after Tech, and that two,

another us. growth and company Impartner So the complementary was driving of has the eye very offerings to towards and future with relationship an more partnering that

this, a be it's side selling pipeline and force We'll you with partnership like side the in And have field. by you. multiplier them, for also any leads a time sharing

help again, So think the opportunity but it recover. sector help as us I has the and today, even long term to importantly, economy the more

Matthew Shea

hitting those upsells, into a guys given to and Are next balanced the make white logos sales discretionary the to can space investments cross-sells, is year you are of more And and discretionary how as dollars new towards mass you've you on in makes the critical capacity those year for logos, back plan spend of And half expansion? that Appreciate you new seeing of unlock? Yes, of or the talked sense. more pillars kind that shift of international year, go some informing the through about approach. transitions, you that. then SaaS hit

Jason Blessing

great question. another it's Yes,

actually space last we've large investing towards capacity sales X prior quarters, about bias a talked because white near-term the it's been quarters. in slight had over a So X our opportunity. we've to as in I've And

to well answer great prior the are cross-sell, question, in I the As SaaS upsell as said a for opportunities. catalyst transitions

had bias a certainly quarters. the over base we've sales of capacity customer bit a few towards investment So last

out with we've focused has towards getting and accounts team, that really years been to And of on in to logo and Sciences the really both new Life But professionals about our half this eye are online on next Tech. excited new our those as team forward the an sales into changed, fiscal 'XX. hiring move and capacity there and High new that definitely the the remaining board year come year that large we couple in growth that's back the and look of starting and over I'm

Operator

comes from Matt BTIG. with question next VanVliet Our

Matthew VanVliet

Maybe some opportunity, digging Transparency a deeper of around components. regulatory the number Price similar products of and of a little sort other State on cross-sell

I your that that reporting you And into to what how think in is a us Act you bound as can kind is or the information the is required getting maybe Inflation of base? market of penetration share any well. that of with feel reasonable? individual overall sort like ones. basket on rates think upper going that of customer ability cross-sell you do you of in But of Curious mentioned not Reduction as of maybe terms sort penetration take modules, regulatory

Jason Blessing

a it's question, Matt. Yes, great

roll moving -- Global broadly we So into using teaming the I great are X the and new Price guess on Europe in our have into deals selling an have a new in U.S., just between be the Tender a there's Model seeing in team might now, divisions the that reminder, customer and to opportunity U.S. or base moving a geographies. our in the X Management. I opportunities customer teamwork and in cross-sell, teams might Right new motions mean -- where products, as Management, we out as I'm sales upsell Global of and lot be N Europe speaking,

So to I've years. with going. of and but year next been certainly also that's days characterize And happy early I anything it not drive that's the this over as growth couple how would going

like current tailwind starts of our to for and to us Inflation of customers need at that. but Act it actually summer, definitely 'XX. new most And as working that the that terms and of then to with in comply or is so come of act end using a product determine to with products, not likely literature as this published N was be bit Probably last a new year fruition, people impact industry product leaders Model Reduction we're a still the to a secular and

we've X then the every a every And environment kind and of again take Transparency about trifecta of conversation in that Transparency Management, rate good the -- Management in in the XXXB regulatory Price of year We I customers, built right that. State State we've came with now. the XXXB prospect Price little drivers production and of State ago, couple with to prospect, products on Management. referenceable now, seen thinking customer. product are relatively just early Price that product that is customers out a a Transparency and now. on and and live compared product. double-digit mean They're a over got that worked in

customers and other GA. to that really product's so capitalize success that with trying drive the now prospects now And to we're on

Matthew VanVliet

into you little budgets All right. of So front? Very of in tutelage, you of more growth really look that And level, can for you group a have your seeing on that? on in market your Deloitte's is the success like little pushing what of of year? penetrate? base are enterprise bit the sort going more maybe under much then they longer maybe something Or Services just the second outlook the feel existing half then how the dried Business after do base you customer comprehensive mainstream the up kind some term, existing areas still at in you and weren't have customer maybe the traction that And maybe for helpful. when a

Jason Blessing

Matt, to the go-to-market they market. to pharma I ability are Business really have into you and eligible who's our their to say, the move works. And large would feels actually vaccine and selected invest script, a product that providers help I to companies, and in a What still the where the company with pricing top we them how some pharma and determining of the Services invest now And offering participate initial partnering bring large program overall as again, case to in health of is good. and willingness to Yes. right one our the mentioned XX

and going coming we think And I figure their Services together with move industry were good resonated Business as a X And there the right of us really ability to to out to coming leaders with enable how go-to-market. help example partner is to this strategic quickly them.

And so does healthy. another point I inclination pretty it's proof think resonate upmarket seems again, the invest to just That of Business Services. prop where, still value

Operator

from Securities. Truist Joe comes with question Meares next Our

Dominique Manansala

for on is Joe. Dominique Manansala This

that you've mission-critical to key one So the subscription ROI been high growth providing and solutions. of drivers has your noted

customer platform? could So your the you a a typical you that on new payback what there have is do for range And period share?

Jason Blessing

consistency ROI-driven whether We pricing always in cycle. you're strong Transparency or Tech it every heard first or cycles, Model Life are one a interesting. a is -- customers with XXXB within highly the negotiations. that High implementing into But I across Sciences, or have reticent new to implementing vigilance that Price It's all they're sometimes products whether sales get State share usually year. Management with of N our can pretty little that our Customers like sales is one our the a time for ROI work of because of

Dominique Manansala

Great. more me. And for one

to do vaccine Model with with remaining providers last noted soon? any top in engaging XX that of engage anytime plans able are you And them? the customers. not, the have you Or if X more X So Were of you add N quarter have you the quarter? to these -- global are

Jason Blessing

Yes.

some vaccine XXX more aren't. pharma top it in our to I of in happen of of providers, companies and the terms world, think and the be -- those some

list of likely top a that, pursuing or for most would not out prospects beyond and logo territory all we in a currently are have and rep And new customers so certainly assigned those a the even customer, who XXX them.

Operator

[Operator Instructions] Our RBC. Rishi question Jaluria next comes with from

Rishi Jaluria

Nice to I wanted a around X-part see AI. business. ask in question to the a generative continued resilience

is AI about near-term see we strategy start because Let position. how generative understanding which you your you're first as the me really it, thinking with leadership better around part, have a market strong

might how a lot through I There quick that got that Rainmaker, can thinking AI be generative kind automation can a And but us we want helpful. you follow-up. of And of I've expect a strategy. seems be at you're if don't and anything insights. You've data. offer Maybe there anything lot to walk about you unique spoil to got of would your then

Jason Blessing

Yes. I weave mean to of it's ways certainly companies a transformative our technology, I a road talking and variety product different into it And we're map. looking at lot hear a of to how think about exciting using in N And about I about we're cases. it future, the X it today. how Model is what's use got they use may talk but great we've

of reference a the ingest another a product the one best called Global in is likely Europe, the it's And really, rules is EMEA, drug it about priced prices. in country. complex how Excellence. to Global pricing us all One of in allows think are called exist in way Launch Launch the which Excellence is derivative And price country most that to of

dependencies And all so country Launch account the outline that Excellence runs takes Global profitable most of sequence. complex into simulations these and launch

of that real impact are and let's a considering we that in that have say, for price of real-time may AI the engine market, can you be then discount the a look And it drug do Italy, at, products in Greece time. in in that also a take

European access they how make or in that teams and existing may country on may market discount are managers products can thoughtful on So not more decisions market.

great it today. So using example again, where we're that's of a

under there wrong several of original are the fraud interesting flagging erroneously are where claiming are which our case, patterns contract. to comparing or to the rebates then the think, vigilance, be incentives I dispensed trying data Our against, who people scripts the contracting and people we've in entire where is product, think on database we might vehicle products other or XXXB accidentally buy taking that customers' use that prescription we of about where another talked are calls,

And so using of it that's another we're where example today.

I talk are a to products -- could we're using really using of today. our future couple of people are X both in the think to those a because resonate ones those ones be customers. again, they the those important how examples that of well it point of actually and lot And And about technology with

Rishi Jaluria

the -- AI customers by shape side. follow-up Wonderful. maybe that can helpful. kind generative a then model hearing of generative headlines seen from processes? you're you're or strategy from going drugs better medium And how base, talking of through their customer example. you know clinical what term. seeing That's the how the on I near in entirely been plan developed love AI, you think for trials to are your in of kind them generative that how integrate to or But When have hear and to really of over some AI we've terms they your your maybe as business what of

Jason Blessing

not X it, on being I'm certainly again, may Well, qualified think, I the talk really how of science -- to use side it's of customers giving but good how examples today. good used

market and going and structure future. market data AI on on how and in to also to or recommendations contracts from pricing some contracts think one working areas go hear access, make access the cases, maybe of better in can forward decades that groups and at, in customers I customers -- is I we're generative the make recommendations to look that on of how other back

big manufacturer payer a a if be working long. cases, -- a many can those thousands provider, pharma drug contracts and you're big of with me, sometimes literally excuse In you're pages

being the next of a used negotiation least so at contract one or hear be a from to contract shell map draft able that a And on road then can for commonly that is we things the customers.

Operator

Peterson comes Raymond question next from Our Brian James. with

Johnathan McCary

McCary Johnathan today. on one have I is just This for Brian.

are Do the to the given you you existing cloud with driver products? investments increasingly opportunity that's going how you guys product kind landscape you and So think regulatory post TAM-expanding you comfortable set growth terms transition? in a for of about Or to the within be in markets the white complex of think cover? guys key space do

Jason Blessing

left. amount our It's new the both. I that's we answer geographies a in is white selling logo I Yes. mean expanding And got good we've and meaningful I mean an interesting still amount greenfield then space have customers still terms into existing other products, divisions. of existing think a of question, with really Johnathan.

we to we are and really -- were the current a about X next nothing, new what good the certainly, that do and really we what actually drive and new drive. if products lifeblood geographies could our But to footprint, we good over X the portfolio with feel product horizon over feel company So years. of are longer-term about growth

Operator

no time. are to would remarks. closing questions over There for like Blessing at I to Jason this back floor further CEO turn the

Jason Blessing

thank with your for and joining Well, engaged customers also appreciate thank thank for all another the well quarter. And employees, partners supporting strong of questions everyone and support. as you, us to I'd all drive to once partnering us to today. like as our operator, I'd of We and again, like

and again, night. have a thanks So great

Operator

Thank you. teleconference. concludes This today's

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

Model N (MODN) 9 May 232023 Q2 Earnings call transcript