ECOM - Earnings call transcript Q3 2020

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

Operator

Good morning, ladies and gentlemen, and welcome to the Q3 2020 ChannelAdvisor Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time [Operator Instructions].

As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Director of Investor Relations, Mr. Garrabrant. Raiford

begin. may You

Raiford Garrabrant

Beth Good third welcome on quarter David Chief Executive today Lara. and Operating call Cornetta, Rich the ChannelAdvisor's for are ChannelAdvisor's Officer; Chief ChannelAdvisor's the XXXX. Officer. Spitz, ChannelAdvisor's morning, you, Chief press to Officer; This and as accessed Financial conference call and Segovia, Thank press With outlook for our the a issued on fiscal we section website as XXXX. with details of be our at fourth well quarter release third Investor Relations morning, ir.channeladvisor.com. release quarter on year This me XXXX can performance our the

In available is after being call addition, of conclusion and the call. this a be the replay will recorded,

statements considered forward-looking federal These call, views as of or reflect obligation to of laws. could we only under results any disclaim from today. and to our make press uncertainties date. statements as are in release differ issued views of today's representative today any expectations. cause the be These update to to we that considered will that actual summarized subsequent not be We and our materially forward-looking statements our a should variety of risks risks related These securities During may outlook. are any subject statements business that

as please which XX-Q website at For results, and SEC those to refer most are material could and risks Form available of in XX-K affect further contained our the the discussion our as other important actual sec.gov. other on recent that our well factors filings,

financial EBITDA, excludes stock-based measures, call, expense, compensation. today's we adjusted depreciation, of interest refer which tax will certain course the non-GAAP and to During amortization, income including

nonrecurring in while excludes year, of severance adjusted corporate and for in third with costs excludes year our EBITDA reorganization. for quarter, the the costs connection it acquisition transaction also prior current related For also our the BlueBoard

to calculated divided our is the as adjusted EBITDA related by We revenue. also EBITDA adjusted refer measure, margin, which

includes income non-GAAP flow. today profit, expenses, free for that GAAP EBITDA, gross to operating non-GAAP we income, gross Our net issued cash margin, and adjusted press release operating margin, reconciliations operating

reconciliation financial We of posted non-GAAP the to also provide on a in Relations GAAP Investor presentation section our our schedule website. supplemental

not in Finally, presentation or or may our responses provide may into provide this quarterly that the greater results. future. are we our metrics offer analyst we prepared detail call to David. to to that, or questions, continue the in additional be that at incremental times let me may to business Please our advised With dynamics comments our usual turn the insight over to of

David Spitz

morning, good everyone. and Raiford, you, Thank

all moderate Revenue continued also see was Epson deliver from bookings and think of grew and retention Coming significantly led again, one good a What quarter Combined, revenue we as down years. about, as the cash U.S., It's including our from sales, success, Music one solid year-over-year for into the retention even in drove was our quarters well forward. execution most many in to the numbers had to than as through our strong team, gained bookings, growth year-over-year in year-over-year growth our revenue however, deferred Difficulty] results performance off customers and a for churn our sum we've these Net turn improved we I exceeding presented revenue brands volumes sales what isn't we've our had sequentially double-digit bookings, acquisitions we've performance six Universal acquisition fixed quarter, they Gant, [Technical strongest I'm Group. third even improved best accounting the to our guidance double-digit were for during company. and which up that of Omron Compounding in minus acceleration customer year-on-year in had a in attribute without generation, financial count, for of two-thirds which years. an level quarter, as shop subscription We of the us, shift majority including also have the the ever, pleased of often October. in even revenue during to as somewhat hard a mid-April off in to growth survey results we customers better sales revenue in X,XXX of close us I the the will few best much as and XX% has excited as heavy position the the results It Amazon increase increase of in in financials and services revenue through including execution the say. particularly and and respondents going believe revenue than quarter, compared the done to in and recent increased e-commerce the mid-October, as our our third as the And was for the for conducted were. to sales we third we of short, outstanding and unit second quarter. to third we BlueBoard. the of year was and this success the acquisition record the more the and increase customers demand about bookings although fixed Geox, should brands, levels grow. a was enjoyed the capacity we solid the the consumers saw they from execution, of Indeed, BlueBoard, which that of month quarter. strong, from asked expanded last in of GMV has will out how solid strong calculate to which we've quarter, I e-commerce continue that we to strong and lockdowns revenue driving solutions, the of pipeline In stable said mix permanent in Day pandemic. pay in pre-COVID growth of programs. e-commerce, before November the expect the in to in our that been able execution thus online daily in forward brand the did and season remained And above that GMV and is the suggest exceeding quarter, this effectively work GMV up begin gratifying to Prime behavior this second be economics stimulus of in the hard volumes. U.S. We momentum far, consumer well as seen. at quarter pulled form this though industry and subscription surge much continued acceleration December, GMV shipping demand the brands. had the the Even possible is obviously of fixed with is it's represents height holiday improved levels underlying exceptional Prime biggest that's stick. especially We're years keep GMV some of of see we industry e-commerce see federal will concern Day levels won't and

So will we expect which volumes demand think holidays. continued stick, should to we of remain strong new the strong habits Ultimately, for drive most these solutions. through our

has the eBay aggregate triple-digits Bigcommerce approaching trends, is in Target channels Speaking Comprising of Marketplaces has and year-on-year growth long channels on Zalando, aggregate our terms continued we what perform other grow over of very at Shopify, to growth. channels, like GMV see rates. XXX of Plus, and well GMV continued tail these of to

trusted of could eBay hold rates the see we the diversity the third steady, on Marketplaces GMV highlights long as has digital if breadth their Regardless, turn fact, our our serious are and quarter global exceed of In next GMV accelerated strategic adoption for this has solution within why increased. the about portfolio growth year. depth channel tail on to transformation and and our ChannelAdvisor E-commerce brands partner. who demands

growth. the brands long-term the quality unit delivering We we're economics, flexibility retention benefits capture and to to to front us to product making and in the revenue time, in resonating capacity capabilities our continued growth. financial intend our and us. Our focus has in sales industry-leading our and is position particular net We continue in on believe improved to give in invest from continued to leaning the board revenue these is customers. to sustainable investments across opportunity Furthermore, the services continue market has and strong and desired to this of yield revenue increased

finish are year that, out And over a Beth. I'll to excited to record with with turn pumped increased momentum. it and We

Beth Segovia

with with showed David, encouraging commitment you, with and growth, everyone. today which existing environment can that improving important strong it's in reduced also work to ways the clients this increased platform not of financial churn is about to of growth levels brand seen dominated organization the Thank help share their by measured in our able our size, a year-over-year. and has on of addition towards in experience. good was and almost in clients when churn existing and significant customer you to a the morning, impact and satisfaction. past moved to in direction. results to expansions year result expanding over to elevate and customer the in the see strong such churn, years to and the with half Expansions is challenges dollars, to made progress be and are numerous customers increasing current levels reduce significantly Expansions the taken I'm ChannelAdvisor digital actions QX, This ChannelAdvisor the in retention hard retailers. able delighted our trends to we've improve specific goal certain have testament its seven journey. their service drivers positive improvement the of significant We by for despite customers sustained reported The and were

to quarterly new with their and help are guidance key goals success enable in help the COVID-XX Some the of clear and and plans aligning finally, milestones growth e-commerce their and objectives the ensuring are smaller our creating achieved; clients technical alignment of to clients; account flexibility to the to on focus to and improved pandemic during a examples storm; more weather clients year provide demonstrating include resources businesses. with first delineated shared and or client-specific in adjustments clients tracked vision ensure strategic

content an the the to and well planning new with new now their center set engagement. to new self-help knowledge have encourage effective new deployed and achievement client improve a a to find first forums as client year successfully to as improving have features. success six enable easier and In solve scored months facilitate to and IT promote problems goals, that clients client services most infrastructure We've we addition of spent learn launched is of questions, answer to last entirely improved to and ability content

through to In This addition, to has well in we've and those as content been trends tools enable transformation, clients our answer home. prouder this client us QX of our deployed and developed identify new believe a self-help. sets continue this, new of the quickly be employees inquiries support team. our couldn't stamina be dedication to to from and accurately IT we able support while to nicely All work a the support to to and technicians set enable questions of XXXX. holiday passion, as up period be major to into I

online let solutions covered Links suite to success, launch Now as to more businesses reach terms brand few that retail sharing provide site and more quarter. research By progress find our for leader with to can a their noted Shopping consumers them that new such consumers easier like multichannel the me our tools for household partners results of Dynamic O'Cedar cleaning brands make we're step own recently of Shoppable connection Media strong on products, they To products options. from that helping a highlights and the Where vital customer connect are and capabilities turn help in so Media, O'Cedar, efficiently. purchase-ready products around life Buy purchase consumers their from to a capabilities, home their adding purchase enable consumers comprehensive our features O'Cedar past help to we've customers a designed to We a as little cleaning natural Shoppable expanded enabling financial product with our online. a to

updating and on our Kroger an new integrations, With integrations Search ship Marketlink enables offering for we Amazon, the to improve global resources more X listings. sellers terms to automatically added XXX than advertising support to and front, Marketplace introduced new that save Bunnings we Marketplace in Marketplaces, reach. our and introducing marketing digital Generator organic Terms for to search the total by including continue help support time performance expand In for to respect based generating in U.S. by of drop and Australia. QX, we On

improve to for channel brands ongoing added our promotions. order allows connections order most which channel digital experience effort their and number the online. hosted manage post to navigate operational Bluestem first-party global the testimonial COVID The VAL drop ship we've them at pipeline countries a console, with delays; to enlightening across dashboard, necessarily short-term Connect in agility, X,XXX how that recent October wouldn't a the where enhance retail to beverage all of over in well health at in retailers offers the In our was associate directly We new people of helped was we've also operational journeys as PepsiCo, company way clients and world. progress as costly particularly turbulence a with that in and for event One new and health we which highlighted ChannelAdvisor food assess Germany. making support selling XXXX from new client XX to Walgreens, was virtual spoke the registrants been to consumers JClub a users which OTTO a U.S. helps planner, minimize processing deal integrations; introduced

our platform During establish stores or ChannelAdvisor services capacities, by hosted to to building. the up breadth excited been web fulfillment they by inventory, the able platform we've said stores, that them been using that be helping with the to Marketplace Whether backstop working multiple David, they're their envelope quickly XP locations push digital noted our by stand in strategies. it capability brand keynote of and PepsiCo e-commerce state or own using shipping they've with their

we more holiday pleased positioned engaged in the results products, and It's in those I driven our challenges surge to beyond of our as see us. continue e-commerce. reinforce The Given to and by need season investments service a pandemic drive our have customers that our we've in our platform financial we have that, company provide expanding growth. To the so am how exciting for that challenges with sustained see to proud summarize, we support investments support the relationships by Rich just Rich? the I'll company's of a our in to remain we super operations given go that pass it a for believe delivery of the promising detailed driven the of indications historic capabilities environment e-commerce. their day now actions the and the capabilities, expect levels made by that undertaken related With to position shopping update responded to renewing clients our current we've kind and during we've and technology our performance. us helped specific customers well to on

Rich Cornetta

and Beth, you, everyone. morning, Thank good

there Following a GMV would second much e-commerce of the in QX. quarter how of historic into that and proportion top from performance a uncertainty financial translate demand line performance was perspective, sustainability about and

prior on in a were provided continued last moderately what operating success the benefit noted exceptional by versus exceeded our the momentum complemented levels and and earnings and EBITDA the indication GMV lower results of we scalability flow guidance we at as quarter, July pricing of model adjusted year saw were Revenue throughout meaningfully and and XX% As we August we that XX% increased cash call, clear grew EBITDA strong, business QX quarter, albeit shared of anticipated. model. our the during than in adjusted Revenue the quarter. our a

the total customers. as driver Although the broad-based our was be the on once brands variable quarter. $XX.X period. year-over-year million, growth totaled fixed e-commerce quarter, growth headcount Taking in driven XX% investment an exceeded and a continued spending to look our strategic over revenue few representing This Variable third results, driven expectations year $X.X closer last ago was growth, by million revenue the quarter, our revenue again year-on-year strong these in quarters over of revenue increase GMV focus during at sales revenue the meaningful during from a the of by for XX% year-over-year. up during quarter was

results record reached are fruit. mentioned thrilled our quarter bear significant to increase variable to million to as X% quarter, we're As revenue encouraged an saw that are Coupled net revenue in for bookings earlier, strong performance I levels has we and and $XX.X the during started with by report we revenue, also fixed growth subscription subscription fixed of sustainable the third sequentially drive the the at record investments improvement we making year-on-year.

the positioned for remain are channels. retailers brands the of shift year-over-year very to brands. more continued by digital from prior this more XX% customers Looking revenue that. better type, has from pandemic customer resilient And for period. the increased brands than revenue We for and revenue represented it quarter pleased total and this as grew brands quarter, to comes illustrated, up year with at when shift even Revenue brands our towards fixed revenue XX% third XX% than generally the

revenue on of driving for quarter, during mentioned from of is And sustained demand. we've third revenue better acquisition revenue also by our our BlueBoard increased well. International have we result a investments drive off in behind of representing strong focus been customers the quarter, I as to strong of the XX% in driven support third strategic to approximately quarter increased time have platform the to our results. XX% a paying force growth. e-commerce in a revenue And geographic crucial Our the this the revenue growth variable started made This as contribute brands growth brands variable was July. primarily U.S. have From fixed investments growth the revenue subscription made to consecutive performance. above, perspective,

adjusted our by the quarter profitability to reported XXX related EBITDA all pandemic. strengthened results generating expense EBITDA basis sales. almost to were important items the $X.X period, second approximately line of EBITDA to of that savings XX%, $X.X as note million for to to in a expense million adjusted is up performance. year-on-year. $X.X percentage across COVID-XX compared points year improvements It include XX% prior for quarter increased on million Moving an Adjusted results the These the of margin

of XXXX main moving annual Our in these the travel QX, of were a savings. format Connect to drivers a the virtual event reduction facilities costs business in elimination and expense

So profitability period $XX.X and more is profitable growth. of a normal to the our XX, improved expenses commitment under In EBITDA trailing operating XX-month and highlighting to expect manage ability continued would factors ended continue not some attributable million, our adjusted totaled to we environment. September drive

on $X.X representing quarter. for performance, million, the first and increase generation deferred the of Turning free increase quarter, $XX.X since were period. the again, we've strong from increased deferred the sequential up of with million Furthermore, deferred QX and million million, $X.X million, the on remain improved up operating strong pleased million activities factoring to was was quarter-over-quarter cash net over about for the representing BlueBoard pleased of sheet. economic third from $X of year, that especially for during and for QX performance million Consistent largest free the to ever cash flow the June, million BlueBoard I'm recorded current revenue. the talk bookings net acquisition, quarter-over-quarter increase Based to activities end $XX.X approximately equivalents start the million item QX, $X.X Despite the 'XX. of quarter. flow I cash in strong balance again, P&L $X.X million, in revenue the An cash dispersing our environment, from AR with in was substantial $XX.X operating mentioned from million was balance earlier, and sheet in par quality I'm actually report cash from additional the Even after deferred net from acquisition. Year-to-date, $XX.X revenue. the marking collections is the prior and million, revenue cash cash improvement was $XX respectively, $XX.X cash $XX.X cash was year

our discuss outlook. financial Now let's

of holiday performance As QX, GMV this we visibility limited. enter shape and season remains the into

provide to we as detail Although overall more remain this we elevated. data we levels driven said, use outlook. a two uncertainty on Despite continued to David quarters by that our have little of COVID, GMV QX anticipate now can

both provide adjusted EBITDA. and have we range to decided a revenue As for such,

reflects outlook we accelerated $X of which, So QX range our our revenue growth adjusted range as for are well as $XX.X growth incremental profile. million. believe and of $X million between as David It is and fixed revenue the quarter, long-term in that OpEx, outlook a note $XX.X million year-over-year and fourth to we earlier, issuing EBITDA million will between important mentioned investments enhance an

million $XX.X year fiscal XXXX, $XXX.X we issuing For and range of adjusted and of the $XX.X between an EBITDA and million. revenue outlook are a range million million $XXX.X between

time. Now e-mail sends tag, at David he the our the every of to notes end employees, hash our this is

one remarks. employees team, our for motto and we living XXXX of pass our for breathing are opportunity partners, e-commerce the positioned for in well and since and As for now have to believe growth to sustained strategic on start into I our for pandemic our will QX, achieve call capitalize We David the back the beyond. been shareholders. some to the fellow customers, this we final

David Spitz

his owing of I'd standing Meeting promotion by since Thank CEO strategy, May, and I Board announcement focus our executed to his and over last on Marc entire that expires few when his been close the contributions. you, XXXX. company that We the to as the and his Rich. us Annual say I thanking time Marc not to for your and Marc, Marc for for recent exceptionally thank reelection at years and of to role. Huffman, like will to we've speak helpful our when Director next morning of company shaped the attention this a be announced BlackLine need has you, term

beyond. with focus on customers, all and we'd And our to amaze to for to questions. and excited now how to call like performance continues operator, this the their to the that, begin them quarter open resilience year. and strong see me the third I'd our We're holidays team looking out like thank XXXX toward with in we as play and Our of

Operator

will D.A. from Presenters, [Operator Thank Elliot first Alper the you of from question line your come Instructions]. Davidson. sir

Elliot Alper

if variable other there? that provide shift Or you revenue on the was color decelerated the the you into if sequentially. any Day can a of expand quarter. Curious could QX? in Wondering Prime Growth factor slightly

David Spitz

and seen a which I the other I by industry channels bit like little that some eBay, QX, from the historic you've what think seen of Amazon larger reported is deceleration generally, a you've was really have measure. in think, any as with of

we, our lockdowns call, there a situation of last some be and relaxed as stores on some little might So reopened deceleration that the anticipated bit.

level noted as levels. So comments, modulation in we rates in well I of GMV But my above GMV. still stable, we some see saw were sustained did pre-COVID that

So I was was quite grew just, the was think that, quite that And QX quite course, did well. QX at think and expect, think, variable we I it nor coming see of still really, we didn't exceptional, I same XX%. level. Having said revenue

So we're pleased performance. with that

Rich Cornetta

results. And and which that really in only consistently of GMV when, timing here thing the customers signed the on add where note and for that that results to revenue to tiers I customers, the of important mix depends don't the have would correlate variable is tiers. exceeding they're the it's up those It when

quarter-over-quarter. So revenue performance quarter-over-quarter the consistent not performance be the with may GMV

Operator

Pfau the will question William Matt next come of line from Blair. Your from

Matt Pfau

will that captured of that in entire they deferred revenue? we bookings you I while had the terms the does wanted quarter that to the is also be then the in revenue? impact and about quarter. and performance to take captured? ask And sort third fixed strong to the those on should bookings How bookings in the when Or a in second of start financials the think performance then

David Spitz

their it work way, particular to typically to in into lag a this I financials. bookings quarter at what I say, our six it's to said Matt, way, it's three look we've historically, from think reasonable month still would and

some the not I we in did in we revenue lot the impact of we've in uptick reflected of that from a think whole fixed what partially bookings and QX saw QX. probably in probably seen QX

confidence drive some will us results gives what that's in performance our So QX good forward. going that

As revenue, deferred to would totality. the it no, it relates capture not

prepay annual with have customers proportion, payment that monthly, We a proportion from terms a a semiannual, of annually. quarterly, certain and of only range customers mix our

say So revenue the revenue the and retention was partial our I bookings in change a success would quarter. reflection only with of that deferred

Matt Pfau

terms the up terms in of and Where at follow-up investments team a U.S. as to in you've the just coverage? sales ramping productivity are in made the And sales they and there. of

David Spitz

Yes.

we way process. I through think well ramping the our are on

last of As you through so with or half the know, year. of thrilled the performance this we're we end grew and of year team. And towards obviously, significantly the the capacity first

So I continued increase think as opportunity see XXXX. we to capacity we into do go

at that are the that and quarter of some with and always where adding all has firing really the people team the we're sits some would ramp. going I this cylinders. pipeline But team. say team the level, productivity pleased So to we're And to last quarter our been on

from So we're say in a good shape sales really I'd perspective.

Operator

will line come Your next the question MacDonald from Ryan of from Needham.

Ryan MacDonald

of you're an seeing, the I are on customers I Congrats excellent. Is activity the would excellent fixed uplift functionality? on That's seeing. Marketplaces you revenue get especially color guess, more there? component. this What quarter expansion the on to and love new more really additional adding or

David Spitz

to you do want this take Beth, one?

Beth Segovia

number channel. certainly we've different into ship of So drop continue so channels, to seen see whether think We XP I it's Marketplaces customers their or things. expand a

for channel capabilities. lot of growing So their expansion seen a we've crossover new is in method addition, a businesses. of additions always But

seen July. new acquisition clients Analytics BlueBoard the Brand to purchased on in up through our offering we have we pick So start that

other pickup on seeing we're addition, well Amazon services Advertising In capabilities. digital as as marketing

So we're channels, help them them seen ChannelAdvisor digital product really consistently about seeing strategies think about we've how them broadly think and not add their other reach, but and capabilities. expand their can only

Ryan MacDonald

Edition progressing the material be as how give Starter thoughts we your adoption an that And or you a when as you, follow-up Can think revenue of for is on maybe contributor? and about start and could us to expectations a Beth. update and 'XX fiscal

Beth Segovia

like. you'd on Sure. if add you that. I'll take comments, And can David,

our capability the So for Starter two Edition, product. we partnership station. continue to partner connections releasing with go-to-market We're additional strongly through

Bigcommerce as So our there's a And adoption users Walmart to through that new week the this platform and additions a additional we've released product. hoping result to on to going campaigns activity. new trial see those now of the of as result

to planning doing customers. moment. from feedback continuing we're Then see and adoption we're XXXX in nice those So nice a

next is us. in question expect still you So year an what for open

Operator

come line from Sir, [Operator B. Go Instructions] line is Riley Securities. ahead from Your question the Zach Cummins next now your live. of will please.

Zachary Cummins

Congrats and quarter the good bookings strong Hi, morning. on performance. the strong

question a assumptions sort mean around of guidance. this QX GMV what QX guidance? Just I making are for you

Rich Cornetta

it's With last GMV holiday comp regards right? a and we're, with variable projections have obviously, to our versus this And year. performance, tougher season, regards guidance the quarter, to

over built kind more more and have growth Right We are Certainly we certainly a be where longer anticipated is in anticipating, on like our model -- focus of QX. QX? Could growth growth, our over possible. obviously, revenue that's it term. levels, quarter pre-COVID fixed now, focused

come levels strong. volume October GMV there. from to activity transactional or And be strong is revenue time. pulled much December to this again. But anticipate forward a be Right GMV once So results are to now, performance we variable November QX uncertain nice do the How performance still at that performance we've seen some in. starting results will and any continue

David Spitz

or get Typically maybe shortened And cutoff around XXst last could I've add and thing shipping might this holidays, December about there's estimates as seen David. or by cutoff expanded to I'll we some a Zach, see is, week seen, One or sort shipping is XXth concerns of be. you've that X.X the day weeks. in capacity it probably the the in just hit when industry some Christmas.

holiday XXXX. So said, this expect is we as Rich performance GMV this strong but season,

think, in top October how the pull certainly represents holiday, Prime are interesting that incremental real And is Amazon question Day demand with just I much as questions. and, of there said, of forward Rich versus the holidays. the shape So on the some demand of

So unlike seen it's year we've and quarter before. a a

a being And bit thoughtful -- that. so I just we're think be to trying about

Zach Cummins

just subscription terms fixed revenue, I'm And towards fixed of curious. or then GMV shift in the

terms their are they in monthly 'XX In FY think able to continuously existing conversations and the How rates really into forward? forward? GMV your them beyond? in e-commerce about that customers a they of maybe about moving moving Or recent exceeded of have customers with what's approach amount months. their these as Are thinking some fixed for this upsell higher you strategy

David Spitz

is is or for But and because start see does we've that new seen, in the think brand. success, add, with touch a then driver improvement happen. particular we're certainly and number seeing to exciting by on anything would I to significant Beth, feel typical brands, situation, really pretty far, which free. seeing the beginning, significant of good there's to they at we're customer customers if that the opportunity we mean want particularly the But have expand is trade acquisition, And a are and you that around and that that. up. what channels bookings solution fixed with that smaller set typically I say, happy and happen, is yes, to activity we I'll of a

we're to what levels? But as So customers engagements good relates it add what you we their usually are those do forward. to seeing. looking customers do help a can of how they're driver to really of volume that's initial we indicator going Beth, And primary have the with those when step anything up

Beth Segovia

Yes.

not, it, quarters. looking between whether assess want they're And in their contract and I suit outlook very terms, fixed are up. to only their seen variable would clients, I certainly, whether the the matches two the the We've in balance last we're the renewals does they're always tiers thing tier, that sort successful negotiate clients think fees. as negotiate their and of, to tier is, who with right add we

And driver done I so, the new has of with But that bookings. the been course, primary agree we've would that. David

Operator

conference am Garrabrant like right. further All questions Instructions] no any [Operator this closing Mr. would at to for I I back to turn remarks. time. showing the

Raiford Garrabrant

with today. to look us We joining you. for speaking you everyone, Thank you, forward soon. Thank again

Operator

Thank everyone, so conference. concludes This sir. you, today's again, you Thank And for presenters. you, thank much, participating.

and now safe, may have disconnect. You lovely day. a Stay

ChannelAdvisor (ECOM) 7 Nov 202020 Q3 Earnings call transcript