Phil. Thanks,
presentation. formal our to on Now,
numbers, slide you that can so follow to refer will along. We
impacted we we This COVID-XX. virus. are in And with X% like moment historic by Starting experienced. is positive our pandemic this just being else. want living all public recovered. ever are slide of this thankfully, they’ve us workforce the a none crisis X, that for of on About And to health tested that unprecedented recognize everyone we have
members, clear. have impacted we communities the However, virus are friends, that ways. and not are all in being customers family know the serious by we that we yet And in very
work-from-home this affected the believe the global seriously. We been have cities first offices we extremely have headquarters, Southern by companies We home mandatory big our implement to were virus have one in most California, and in that of the to virus, taken we adversely policy. of a
begins of stay-at-home orders and/or federal, our work-from-home state local a to relaxed employees dissipate remain in in recommendations. and are make will lifted, and policies we pandemic Until and environment. As worldwide all our to the then, changes with accordance guidelines
On key the level, collaborated the business planning we’ve areas. a around with few team
customers been the times. empowering employees our these our through has on focus of and safety primary Our difficult
our general For our offering both a COVID-XX, and course our we both community [Cornerstone program, anxiety public the for working Cares] a Cornerstone platform. we’ve employees. both Cornerstone leveraging registrations. free that launching in and for portal launched Care X had remotely this free recently (XX:XX:XX) managing Cornerstone million and provides content clients, training over Since managers the Cares, online (sic) program a includes for clients, on
times. those are trying work to We train help financial also to who from their how help goal is Anytime worked during up Work clients hardship best with We’ve our Cornerstone that Content commitment to mission clients these our home. we’ve And clients since released Remote which stepped meant is experiencing on realize to Essentials, potential. our
disruption Our our has seen to continuity global team adapted services. business have to work. remote no From well a perspective, we
Our We’ve debt including employees’ With the even terribly to scenarios remain done to in complete the have contemplate our scenario planning, with during on has some liquidity productivity that stable our been outcomes. acquisition. are period, and our respect and position took this financials, platform various models our we Saba bleak, added been we levels confident strong.
Moving on we high with rates. X, know, as to slide renewal business a historically are subscription-based you
result, revenue environment. was continue at slower more to grow to in what a normalized crisis, through we albeit the a expected rate a than expect As
of more reasonably bulk and is to we quarter, more under off believe to each book high operate substantial the we comparison model. of visibility, the our ship a and have of our of portion a transactional and levels in revenue business have other are We that balance sheet, stable amortized predictable revenue businesses and
dot-com September and adverse situations, seen through bubble, we’ve financial therefore the have still XX before. the anything we’ve and dealing lived experience global different is than crisis, this Although with some situation
business, stable predictable to I’d we and business we of effects our discuss. not the believe aspects pandemic and a of immune what like challenges that this some are to we’re seeing relatively is Despite
QX. First down off, at trended the our of new acquisition logo end has
XX over range sales for X generally customers Our enterprises. get smaller to as strategic into from for cycles months customers we new large months
we caused the COVID the sales noticed lengthening freeze, the of As cycles. situation to economy
continuing deals that could to already our broader new writing multi-year we new companies working opportunities closed. remotely, see until reps normalcy can expect We’re with returns to while signing and of some agreements drive continue elongated doing a have the proposals vendor demos cycles we for many economy. and these sales the forward, And sense
bit has climate products as consider some well, to new our still bright new and every slowed are to for quite we customer our they caused while Sales clients company in Number doing if QX. Client strongly handled any pause cross the a ROI [ph] and as value by and value clients. cross-sells our economic believe to companies a our ability spending. drive proposition uncertain as we our are (XX:XX:XX) to ended solutions (XX:XX:XX) our increased new spot our to still two, our [ph] sell team sell content Cross-sells Nonetheless, we products base, cross-selling
ability cautiously headwinds, although new team optimistic is driving to facing we about continue So, our their ARR. some remain
Having that an relevant where in home. their does even from clients the keep what are mind in solutions, that, headwinds, to our with is Cornerstone said working environment our employees all particularly
our employee our example, development historically and have seen of executive and their training done many their onboarding clients move online. For onboarding of almost of while person, in all we’ve now clients all
the the effects been our had economy. On about sectors varying X, we pandemic talk slide different how impacted. of on base has client has Obviously,
look the we can and a the you see on Saba might all entity around Cornerstone by world. slide combined on to it therefore, major As helpful serve. services the basis at industries Cornerstone that be industries holistic thought, the We X,
for more you provided total information business that We going our this industry, not very granular regularly to our to help update see provide combined forward. unusual or you so get ARR look shows do this This could exposure. information XXXX during our We this chart potential at time. by expect a
negatively our impacted based often COVID-XX are that most as and and thought broad out of the on you industries As the across a right others due spans range call client some can by we of press the industries see, to of base being pandemic. [ph] the
As revenue an than combined X% of with we annual Saba, our have airline sector. less example, the recurring in
both the side, flip very also a had who Amazon experience clients most than and the pandemic other we UPS, companies. of have On different which in like
In to economy. addition, desire which a business is have substantial public sector the to less government’s impacted the due preserve we
exposure to shows businesses. of X companies. slide what exposure smaller a these on you We chart the to The sense give combined to was wanted small our
I on X,XXX can small. is point which which under employees, one of the define is relatively and chart you companies exposure fewer our SMB As we really term. very fastest-growing segment, our we’re excited however, long one see, segments focused employees, over our than about as out, to that segment is XXX this will this
for total the grouped Saba in shows revenue Cornerstone dollars XXXX recurring industry. that X entity by for of Slide renewal combined up annual are and
we showing three-year sign generally contracts customers. our are we why this? Remember, So, with
to up we’re are addition the churn in showing data this other XXXX risk of economic so, climate. in this primarily the contracts for these slides, way, that this it’s present highest that because renewal in two in And
impacted and candidates have believe, that dollars renewal concentration to be I’ll by that low certain in will increased industries XXXX it’s are risk conclusions, for that see that but impacts let industries you more you we churn, If the severe can analyze. own want you example, up you most see draw pandemic. for those for therefore could your
quarters we’ve X, slide associated this ultimate significant what shareholders during for company through to with onetime pandemic it liquidity year, this seven run renewal rolling And next planned owes takes test ARR we and assuming new the their Turning our truly on precisely to chart, to combination of outcomes. of leverage is stress dire costs the any the This stop that off year on done. QX to is with what the realization other at and of believe if XXXX. Cornerstone, the of total QX words, approximately transaction, quarters, sales we QX next million you from seven In would which of can no these at sales greater zero synergies April than of our if end had see we the happens this to and QX the year. of for next modeled, our all rates, $XXX model pro end showing rises liquidity $XXX XXXX from million our high that forma between
pay our overall out the priority I debt that of cash scenario our business. confidence What this incredibly our be scenario. use quarters our point in the is kind and we expense that in down us in well super-unlikely, to able we’re from dire deal we flow that interest face, delever planning will Saba give and and shows will in cash this sheet. coming to conclusions It’s the in whatever balance our of them excess of generate even this that draw
of turn XX. to QX, slide Now, quick please review
a As here, a reported perspective. you see quarter can we financials strong from had
came revenue came range. subscription at million, slightly at were the our in exceeded of total high-end million, which at end in while Our guidance, $XXX $XXX.X our guidance the of high revenue
although plan, ARR which slowdown pointing out worth rates business in renewal support our QX in saw of that were QX, it’s ahead a helped Additionally, slightly total our signings we QX late ending balance. new
Our meaningfully. non-GAAP coming our operating expense-related our at factors nearly the contributed in in Several to the policies, we down high margins. implemented and end came operating margin as of work-from-home our travel And XX%. exceeded entertainment costs strength guidance,
excited of manageable. so I’d the we deal transaction believe excited we why it. it. about due And to Saba like value. the impacted as today will impacts create first as the our And businesses the the have Saba talk and In were about been believe pandemic, We we’re announced we are while the when are we just of next about meaningful shareholder acquisition both minutes, few to
seller’s summer Saba As the on up be there transaction would sale, you timetable. know, last reports were put for the and in that participated press we
approximately brings reached want Turning we to discuss on know, total the details to value thank support, significant a transaction, offered process. from to who price acquisition of opportunity just of guidance for of the think XX billion, final Brian the is you shareholders. which transaction I and but all million the our $X.XXX and than of for announced our a Saba slide during completed XX, creation out as February. this $XXX less advice price investors April about the will We their that Cornerstone purchase
Over our the the minutes, course few of next logic. I’ll through walk you
transaction. number There did basic what Saba three is here scale is number flow. one are reasons refer and we as cash reach; innovation; three, two the to why or Number we
dig of So these. let’s into each deeper
lowering by lower-cost The geographies. our that you our of expanding map. XX, footprint infusion will huge into engineering simultaneously talent engineering product road can slide us see On believe our while we to accelerate enable by than deal XX%, count the increases costs average resources innovation-focused head more
lower to we our try two that feature and is we cost our faster, be up our overlap, traditional in shareholders. sets more higher with here Rather, a and to integrate. competitive they companies to duplication key products make together. differentiation for of innovation. won’t not products building of will eliminating deliver significantly bases integrate a substantial This way relatively software effectively Because allows are accelerate vision to sense and core on real simultaneously we connecting deeply the our efforts free where more Yet service development capacity product returns us integrating clients different our
our reach learning a us increased in deliver will us opportunities Turning right the feed to and of to immense. right to huge the learning brings at enable clients is right increase machine to slide number engines, people help data XX, users this that increased into transaction the time. The the
giant Think evolved. Netflix about companies how like
an revenues meaningfully and ultimately and to and As user lowered which will increases engagement acquisition user into improve opportunity to show they they growth. The able us the further better the churn Saba successfully products like their that user you knew our able the reach, we bigger, expect got cross-sell other’s expand one which recommendation brings engagement to This smarter transaction drive us you’d vastly our our they expanded increased got And engines to help we’re through if personalization. were more content base. drove and bases.
that market a in we Now conditions, light large believe of to having current favor. base is likely incumbent in our work
limited you clients. two Just consider survival resources we in ones that money I us, like new case the told with situation. many working compete and on reverse a hard were Imagine customer things, depends winning if small other a of in raising start-up development more with base,
Although foresight today for pandemic, time. XX% difficult is and and think it users about that long competitive we a in the in have than do incumbent winning X,XXX strong any the army million and with as And today positioned money both been more did XX position those the fact over we with developers is in raising know than an against larger tech within of has we are it that clients we didn’t better the been a deal, the was some acquisition to this now we new than start-ups quite more before than is time. accounts, HR of
switch some the both I some had engineering base seeing the what combination client in pandemic. last us churn this year. making some after have current a larger In stick of and saw well played during The how last the about quarter, and made they larger with statements we’re the than providers. rather decisions role competitive fact, to just we companies big of positions team environment, environment In in a
close. $XX is were XX months first third team you told first of to achieve a in rate Today, end that the the work following the run the synergies in did see now as by guidance that $XX synergies to that conjunction announced over we the at million benefit with transaction’s planning of financial. year. AlixPartners, could we you achieve this hard deal, million of result expect XX, the we When raising we’re we slide we which in on transaction, to that the Now the
team listed in of see helpful cash is chart. these in during these cash put synergies the really good news hard work I’m Having areas, virus that flow which our about in this, all of proud many of that cash. and The are the on on this extra we they’re like the for on they the flows. some this especially times impact is cushion reducing savings
out we As recurring I combination our as and earlier, storm. a pointed to ample business these synergies believe gives cash liquidity result, flow, revenue the of current and and the weather sufficient us
I succinctly $XX think slide cash value in basis, this chart a we XX economic in million the way did Saba XXXX. on transaction. the stand-alone this see roughly unlevered On captures flow of free
we you expect $XX hold as $XX should we If cash million free a and in pre-COVID million an of achieve flow of we flat, $XXX part add on to synergies unlevered XXXX cash cash approximately believe basis. the bought Cornerstone the in that flow million generate asset
Cornerstone of near-term base to We and provides into shareholders roughly strong the to also with only from expense, shares things grow value and load shareholders full year. or the us which million of roughly drives a taking shares weather net to value improve. cost incremental from to but when dilution doing good challenges interest X to million that us on annual each additional economic flexibility not XX That a million represents The base us gives presented create the just by of account think this pandemic, under million a X.X%. and cash cash flow incremental of $XX deal is $XX debt some
disaggregate X% ended about as XX slide talk in to on revenue, Saba help and year-over-year. I’d Saba grew a with Now XXXX its business million annual recurring $XXX trends. like which
growing new between discussed labeled two in ARR XXXX. new not $XXX AR, in categorizes ARR, customers, these our calls focused migration XX% declining while million, were Saba simply deal we February was XX% were core which and core its products XX Saba XXXX, as call, to clients, difference As The migration which what was $XX million, selling announcement Saba is maintained. categories products on in to sold that into
Further product ARR, Saba’s disaggregating in grew XX% ARR Cloud, management system TalentLink combined from Saba when product the called $XXX which in Saba’s XXXX. with ARR learning recruiting the core million
Cloud much leverage to advantage feature we’ll certain were While some quite them including sets same leverage Content base. Saba Meeting in Cornerstone We that the which offering Saba the is Anytime Cloud client way there functionality plan the to sales into gave Cornerstone within situation. similar Saba Cornerstone’s in that Learning, functionality, Learning
Lumesse, to with is plan sell came Saba’s predominantly XXXX. was the capabilities, world. for applicant-tracking We to in around in deals the recruiting the standalone product, basis we which plan Europe. candidate it bring TalentLink strong relationship system sold believe TalentLink, product from a to on Saba a US recruiting management and solid
product, Saba’s in under ARR. X% TalentSpace, SMB came Halogen of TalentSpace ARR declined just TalentLink XXXX. Saba the half from performance is year-over-year and Cloud plus
good some opportunity. stopped to Performance, there there’s TalentSpace because a those significant real during with to gives then a and the Now cross-sell talent clients not which selling believe provide year, those ability option base was the full management client migration us solution this of gives Cornerstone us TalentSpace new to the opportunity move a a We is Saba’s accounts. to clients for and
And we synergies the providing will we addition some that why realize, expect understand disaggregation this synergies believe better deal. this help to of in to Saba’s we revenue real ARR see from cross you
believe Although pre-COVID offer Cornerstone combined the products for come. products Saba employees performance, shareholders to represents benefit many to years partners, continue for and customers, will we and this great
to each something free [ph] slide, cash $XXX other you see the component top forma of XXXX in the how pro slide Pull each about of on the can order stacking on next together XX, generate million value of we on flow. thought all this unlevered
XXXX. we left on start cash flow million the $XX unlevered in free you in of chart, did the If
the the flow path I you see cash and to We synergies you $XX figure the also unlevered a on talked told million you about million And that earlier, that did $XXX in Saba can then free million add in XXXX. right. can about in $XX
Of we course, we wanted give this that any see. these we’ve using help with numbers transaction, cost been understand the to to the value-creation of the but you framework the ignore transaction onetime that associated opportunity and to you evaluate
you’ll we future. grow the to course, year that also expected cash remember flow into Of had this and
look cash to as we over significantly clear so a this increase flow opportunity at And time.
to these teams to slide us Turning XX, bringing sales give opportunities shareholder drive creation. interesting some together value also
reviewing The of companies. team first plan sales is call we’re to all-star the that two we of combined actively what an the and develop teams each best reps the in
While Cornerstone working we’re has been to with an we’ve also we’ve Saba all-star impressed with forward team. really exceptional this sales culture, what seen looking and with
to We’re think reps their successful go-forward the win that best position also Saba us our reps, that It’s best be I going together. be looking combination use and and that to to of to to will motion. concepts apply best deals a market take and our quite
pages of rates cases, So, areas, higher had win plan market playbook in strategy a our motion go-to-market our the out we so certain to just combined of certain execution. point and their few in to improve they better and take to
satisfaction programs plan into over areas, And joint We some to our of higher Saba’s in certain customer finally, to plan these improvements time. renewal rates. contributed incorporate compensation compensation and
rebounding, to on talk more the world future. create stabilize a their to new for vision. the and in responsive now to pre-COVID a companies is of more our more from vision – to rebounding an seen, like What rebound, just companies and help opportunity to for trying a is rebound we new our XX, effective world ultimately way, Obviously, the and the work, and but these I’m not see beyond operate to unbound, moving and world the world. minutes clients the the operating plan from volatility in we about I’d take adaptable, in few have slide new product
we skills On enable the slide this. The matter. been in where pandemic. a during this talk become is being even That accelerator more primary skills divide has learning We’ve world real. true XX, about to
And from learn. people world. massive be for reality. over prospect been all well way of think to in a a And change we to future have only idea for transform forced technology digital is go adapt to this seeing those means current the employees environments dime. We’re digitally a to transformation on to able the Companies that
in anytime, Training we see do that around learning content is able to that we be our anywhere. the initiatives slide accelerator. People professional believe can you curating learning XX, should And not on be And that’s have world, should just in unbound. with personalized Content available why but that our to content as learning also open-source by is professional be curated sure flow work. want Anytime, as external can content We and informal well make machine clients. both of that the our to by people
We has the of job tools people during and work era in we their flow using skills connected. this learn that to Slack, Everybody been learning training happening that the have context enable current of remote collaboration the work they job the dream ensure in And in for gaps is work. to want Workplace, in in stay want Teams, in of to allowing flow to the of. for people
on anywhere anytime, available any training personalized completely device. So
employee. On believe unbound single that the for for slide coaching every allows company personalized XX, we also
lot artificial of and you us things: intelligence coaches. development if imagine, accomplish executive aware the managers are one, make to coaching power executive And programs programs. use of a of sure two better Now, different that are the could
better in This to possible time, this entirely coaches, combined at only but had give we the tools employee. us. make the leverage, from manager give for coach? machine same executives and AI-based the the every have employee has truly coaching a And a better tools, machine that supplement they so from employee to the their to Everybody personalization access coach every them the Clustree personalized manager And life. the better only acquisition for learning to navigation, and recommendations manager of the the with direct has Why bad a possible. make incremental not all R&D manager resources career Give is the not making Saba their an have manager. for need
understand based executives skills decisions. profiles skills, gaps and holistic opportunity the even the whole be view we to workforce to employee, employees, have make we company XX, people on and skills-based about that optimized. make to the better on And data recommendations is capabilities the deep in slide people of people to on to and the means enabling to that clients provide our ensure have That experiences understand employee able and managers believe, line enable
On Saba. talk points about the XX, with we integration slide of
what So for Saba training we’re us experience will deep have Classroom, Saba instructor-led complement doing very supplemented with get Meeting example, Cornerstone to a online to and training. Learning virtual with enabling already
almost happening taking there’s training virtually. as result everything no place, environment, classroom this In is
addition So companies to Classroom. Webex, going Saba Zoom the with relationships have Meeting and our Cisco and with in Saba offering we supplement to we’re like
era content Content We Anytime are them subscription. to content from a away, which are you leveraging curation And were selling Anytime curated all Cornerstone some evolving partnerships to bring Content standpoint. leapfrogs begun constantly already clients. content, had, they we’re a make about fully but we modern Saba two available with Cloud right where going behind years them a had they able into anytime, mobile-ready to that Saba in available
power even Transition and solution our to apply it for going a take was a apply built using relationship Org Cornerstone architecture, to clients. candidate better of HR. using Recruiting management And it the which the and Saba to to take and Cornerstone we’re microservices capability to enable going We’re of TalentLink, Planning Manager recruiting
and we’re time, Cornerstone Cornerstone integrate, also, products, available Saba Development our make Careers to client to two newest opportunities over of base. to going the lots So
you’ll immediate cross-sell opportunities. our see Slide On XX,
as We base. to content ability cross-sell have we Saba to to Saba learning again, base. To Learning Recruiting Performance, extent cross-sell Content Saba we the have have We Saba client that Cornerstone Transition and will clients HR Org to and HR to move the the Careers, as Cornerstone Planning anytime, Classroom ability Cornerstone and the Meeting upsell well Anytime. to can the can And Cornerstone we client upsell TalentSpace from Cloud base. Manager
So lots our on and lots opportunities focus of clients immediate successful. making of
ensure make of base. believe X,XXX business relationships to client strong levels clients one I our the and for with this and that combined and our number long-term is priority Phil high renewals successful
to that, it to With I’ll hand over our discuss Brian financials.
