QTWO - Earnings call transcript Q3 2017

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

Operator

I would like to welcome everyone to the Q2 Holdings Third Quarter 2017 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session [Operator Instructions]. Thank you. Bob Gujavarty, you may begin your conference.

Bob Gujavarty

Holdings XXXX. for QX ended third the XX, September to conference the call quarter Welcome Gujavarty, President Bob I’m Vice of Investor Relations. today Jennifer And our me on are call with Matt CEO and Harris, CFO. our the Flake,

today’s reminder, via a being broadcast conference As live webcast. is call

replay copy a will call the release yesterday site. was of site our the our you should afternoon. be By distributed it on the press Investor call. of of now, on is If have Web our addition, In available following section received available not, a Services that Web

by actual in must results or discussion, statements the projected question-and-answer Before you These materially numerous which beginning, are we subject results caution in statements. forward-looking cause Also, risks implied contain solely statements present that statements that the to results uncertainties today’s to forward-looking during actual differ and factors, remarks statements. subject to uncertainties, forward-looking these important this can from information made are these statements. on other including cause differ and to session, could and based are those the from risks

and update additional disclosures. undertake refer to our therein Exchange Commission do filings We For any to and forward-looking the information, statements. any factors contained the duty Securities not risk with please and other

measure cannot unless the which financial the site. results, the The how significant in GAAP our on During will GAAP stock future expense outlook is non-GAAP not non-revenue our we to estimate of are we to on discuss reliably state to as which non-GAAP internally expect a this and compensation financial we our without financial Investor the are dependent referring other are tables number. reconciliation call, comparable available Web reconciled and available measures our measure we unreasonable both we we forward-looking on attached provide things, our measures. Since our stock-based of GAAP a is to representative has a Services to stock-based GAAP will have be that impact outlook expense, We believe basis we future press because, they release, GAAP business, non-GAAP section the compensation among reconciled is measures Any price. on been not today non-GAAP future future effort.

like I’d in Finally, and two Conferences Conference in RBC our York TMC be to month. attending Investor highlight the Conference We’ll Growth participation Stifel and this Chicago. One-on-One New in the

call over Let Flake. to me the now turn Matt

Matt Flake

the year-over-year of today’s all welcome million, up Thanks, just on XX% sequentially. registered attendees delivery over from We had solid us to at which performance million XX pleased representing execution, of third brings XX% with another than very our $XX.X Bob, XXX,XXX the In users and sales growth and year-over-year. end generated adding the we nearly quarter, call. of X% revenue was to I users, the quarter, more quarter. quarter

quarter is we credit not typically cross bookings, success sales, several and and third the across both unions. While is new experienced net banks signing large strong for

States. United discuss upgrade. holders, want their with bank only undertook will customers, Midwest both serve technology The the platform and QX not systems to expect They an the consolidating operations, to consumer internal consumer vendor help commercial The running also them but for for is first were systems of enhance and $X and a growth. both new banks in bank experience. extensive in QX This I billion improve to net the an of badly goal was evaluation account showed and need win user disparate the position improve commercial and

The I’d It the at significant everyone million competitive billion competitors deals like milestone major XX the work purchased of to decision opportunity is to platform corporate growth QX mentioned success opportunity corporate users This milestone in right corporate the the product union Northeast existing And the And union its that of All our history their product our the teams, hard before, partnership view nearly us our wins sales is platform why in typically expand quality the suite X in recognize registered bank as our for We of company. reach and to our and user in build Northwest this which just to gives corporate initially XX of right good working takes States, all as I've factor in sale quarter, by is portfolio, with in decided pieces, larger contributed highlighted our mission, from marketplace. United the product to consumer team key cross continuing growth, of Tier experience corporate another the the the consumer expect resonate million. I highly company. we largest corporate example serve than solution. clients. $X things our product And This that institution, cross X lot were which cross innovation, the credit United involved unions. QX's to and also the suite the product A a key to another The element credit which message, XXXX. sales I with signed purchased people the in in great quarter Our chose Tier sales of side, validation product, accountholders confidence States, of of quarter. Cross making. the our to replace continue the a partnerships involved. mentioned our our momentum as its to Earlier client had of our a on space. XXXX, selection. credit me significantly group. to with call, are the of Tier significant these X our positive breadth well. a our robust corporate end wins brought our in with as the But client and a is banking our is and end strategy, from of a this three continues because, the

provide product the like we QX update which of is that announced quarter. services front, portfolio, to the a on set in On open our formally the API I’d based brief second

wallet, revenue a launch help product, debit San During we in with leading the called getting CardSwap the CardSwap, product and or generate CardSwap with first is and of in to its product. development, open rapid positively using by quarter, turnkey the represents first developed Chime the clients, it financial prospects been deployment and industry, credit top publication new we've the valuable announced complementing bank to received APIs. generate cards Francisco QX because partnership significant third designed one their the Bank, its launch, ability is revenue. has financial a it institution branchless institutions at for and Since interchange by to the

example the Open to our partner M&A Open institutions more a commented tools were new in bring that partners CardSwap in partners, believe opportunities independently expand or how clients new good of elevated for among QX enable early we and our I will and client equip and us XXXX. expecting financial we to to and year, to on Earlier innovative see the with is activity market. products portfolio, it's Although, QX rapidly develop products,

lower timing logos year, the lost that XXXX. customer activity Currently, down the impact customer M&A through election QX XXXX with revenue, we’ve we’re the count customers. historically anticipated be of focus the that we XX certain timing ongoing detail will QX account going that during to churn will discuss acquired slightly the eight cycle, I will result added on this may than clients, from of But them of slightly more how anticipate acquiring of I’ll in team with lost we discussed prepared five because remarks non-QX acquisition. I this The of hire combined to you remarks. XXXX. made a expand also for key the migrations on we combined go normal end wise customer by we up the customers would that our The And the at impact reiterate have XXXX, anticipate or larger uncertainty I will our during that like reported more users strength of to of clients result in Jennifer business M&A, in and effect her strategic nearly third as and will quarter. in of churn our update X% to during the at and our XXX Now wrap of and existing reflecting the leadership acquisition our phase by mentioning a give and my relationships. client revenue I market remain an other less our end

Christine management Industry, Chief will veteran as including Christine earlier, we a Revenue our teams. Peterson, In welcoming the this Officer. and role, we the relationship announced sales more of entire As new direct our FinTech organization, than XX lead year are

in We’re capitalize join excited asset the I QX, and market her helping Jennifer. great turn to have to us that, call a she’ll I’ll With further on opportunity. over believe our be

Jennifer Harris

Thanks, Matt.

to the year. third year-over-year million, finishing the from for the briefly guidance Total of $XX.X previous quarter pleased increase before updated an the are third results and up for solid have results. We our quarter X% XX% I review deliver quarter for will with quarter. revenue was

ahead a non-GAAP quarter, history expectations. the the income income the operating positive We’re of non-GAAP quarter operating prior also $X report and for pleased first to in of million marking Company’s quarter of full

growth of was subscription Our lives user third services and the growth in go revenue customer by revenue. was the result growth and combination quarter. the driven increased revenue a Subscription of organic in quarter in

from customers. XXXX. revenue sequentially in as total XX% the consistent of While third incremental the services quarter the customer from well the lives, of benefited revenue revenue down total at quarter revenue was based in existing go previous actual Transaction third and with quarter, as services and projects of represented dollars several in new XX% up

XXXX. continue stated, the up X% driven by incur from million second As Conference, growth a primarily $XX.X and and million cash development, versus basis. moderating which please to mix research negative, account otherwise for year in we margins operating second one of was to and year-over-year operating on ended The in third driven are expenses. operating therefore, higher quarter. the references from expense quarter $X.X ago unless April. negative the sequential primarily primary the customers X% Customer results the higher $XX.X margin previous services Services up due related ago margin revenue. we expenses on equivalents the the down revenue margin was non-GAAP as in by the flow of previous who and from were was million, to in million, of a remain the period quarter. focus turn was across margin large million, services revenue impacted for the $X.X improvement growth this The in to expenses while was down quarter have quarter. gross phased the investments from and to third was increase flat the shift from decided large several from and to EBITDA operating year quarter. in and quarter was in holders. due quarter Gross gross cash, held headcount Total XX.X%, up end slightly operating our with resulted up Cash $X.X negatively the the operations million, was increase note all from with Adjusted a and We to Gross the and headwind mix expenses timing that of improvement deferred organization XXXX a Annual $XX.X decline at and of significant year expenses, and of migration to our only a their pursue by $XX.X million

expenditures our free cash of an we in the capitalized costs capital towards During cash positive incurred achieving of step and flow software of for quarter, million, million encouraging which for half flow the quarter, free entire $X second the net XXXX. resulting development $X.X of is goal

$XXX.X and to range million up wrap and million growth. $XX.X year-over-year year me fourth by $XXX and fourth range quarter the of XX% million, the our sharing revenue representing million, in in year XXXX forecast quarter full Let of full $XX.X revenue guidance. We

a earlier, previous of this from represents the at reduction guidance As $XXX,XXX midpoint. Matt mentioned revenue

control. actually now revenue instance organization. transactions due of reasons pushing good users We customers, their but is some pending have but and rollout generally have close the a control which another M&A, we for first quarter, cannot In we the expected customer to XXXX As which depending to to customer M&A. adopted timing timing little half of of visibility has instance, in when our are the from recognize circumstances, into then the to and solutions internal One relates the slowed over migrated. the they fourth

XXXX. adjusted in resulting full-year, characterized of the the this raising from We EBITDA EBITDA $X.X guidance, begin adjusted half EBITDA in EBITDA summary, as in $X.X income. margins forecast improvements XXXX. full-year We was of of to million in quarter a first negative our from by quarter X% a our of million, expect range up the X% $X.X up a million of to operating million the and are $X.X fourth full-year adjusted recognizing strong XXXX, as adjusted for and well we quarter flow, for for million third free first year of to the cash non-GAAP In midpoint $X.X to revenue

leverage are in financial We pleased our and our the by shown in the model. quarter performance

remarks. closing Now, to hand the for his back let me call Matt

Matt Flake

a I'm quarter. to reiterate I solid for Jennifer. Thanks, third organization proud of the want that

product We positive income. quarter non-GAAP multiple Tier suite, continue and our and our expand of signed operating X to deals first innovate achieved

forward optimistic the As I close on year we quarter, over pipeline will for to we a call operator that, fourth and our out the With the look the strong to is I’ll positive turn questions. that note. am

Operator

And Instructions]. of comes first from from Sterling [Operator Auty question our line JPMorgan. you the Thank

Your line open. is

Jackson Ader

is guys. Ader This Sterling. for Good on Jackson morning

full from customer think lives you pushed concerned. the is as splits questions do that side, our and between M&A? the First as far go revenue any year guidance How from impact out reduction being

Jennifer Harris

is impact of the it. So M&A from majority the

Jackson Ader

going a so? is to to maybe expecting we’re recognition XXXX. or that that of then Is that be quarter revenue just quarter would now risk the or reduction there of go revenue lives follow-up simply in were are permanent And fourth pushed any so be clear, that out the you there in of and this being

Jennifer Harris

actually who where customer and set we growth. lower is expecting This their significant were typically than minimums we see, a what

of expecting system to our minimum to on we get live them growth the half actually XXXX. recognizing they’re we’re expectations are during revenues. their the So and But first

to They’re not push was recognizing out. to just take are months It’s going we them. to we is that where get revenue to of going it So the level from a thought six complete be. revenue another

Operator

comes Tom from question from Roderick of line the next Our Stifel.

open. is line Your

Tom Roderick

like I sounding I pocket level a So can’t some think this, but air bit that year. help about with guess of it's back little next comes an reacceleration of

see still than happen that ’XX? earlier How growth more how loaded to love the seemed that before as point. that. to that XXXX you So couple comes that? all we of might Could fully first biggest to I will with cross your guess thoughts mind, consider not on you you that things expected. sale understand hear in as to their had pluck when trajectory half model you’re theme I’d you you guiding Xs suggest Is of it I a we this Curious ever. you be back? land in something back But a into we like it that would about your Those think suggest half? at Tier this quarter,

Jennifer Harris

that I’ve XX% still certainly back is ‘XX. it’s more I half is calls, think previous number a think XX% And that for achievable. said good In loaded. It

off increase to Matt will seen in remarks, as activity, things is However, close carrying the users XXXX, of when M&A or move a system. and some prepared exactly mentioned to difficult we’ve on little predict in which bit when his to of will is and some in an timing

year-over-year what Tier bit So Xs slippage, I of given think I at discussed back but conservatism I the that first XX% better is outlook. in the my sign growth than put we the be of in noted given into as the half the range to XXXX would fact the to half, ‘XX, ’XX didn’t I the beginning. XX% current more first reasonable, any half the there, And a of expect

Tom Roderick

set And acquired five year. I you go And Matt M&A maybe to to a that there I element doesn’t half -- was will were relative is hear want hey, your hear the of that M&A, until acquired. to is to being will right split eight nature impact your and in you when positively an there quarter. a not that Jennifer or churn then you logos away. an not comments there of just go probably fourth not away, be it, There impact customer But in logos, want where side positive of that I were handful suggested model on element the will next year. XX or some Because to of other you, comments, on loss M&A your right discussion the

understand permanently relatively acquired? this up see other So your that a just been M&A your from works customers hold And back in to can favor Thanks. certain us you out as that discussion M&A go temporary have customers? falling to of you to what is help acquiring

Matt Flake

Tom, good Yes, it’s a question.

the acquired prepared acquiring an I we call we’ve think lost when losing that M&A I is The that’s provided of very the -- you’re smaller and color we outs as are and more strategic we deliberate users they’re the end that and have, perspective customers. and from on than work historically. are And acquisition in start in the with the typically is, ins always I actually to on us that that customers said remarks, for we’ve acquisition, fact only focus customers.

out are get there quicker our than And so banks larger converted which credit acquiring custom or customers, that they the unions. are

to a them, customer a revenue acquiring they So and that that's are come and that the wants But math. if the feel outs we get ones they’re and we they anything two off to ins And get typically acquisition take so up are little to free. longer customers and system, larger lose smaller the the add faster. it Jennifer

Jennifer Harris

the would Matt said, still we even or less the increased churn level. at as I with to only is that to expect remain M&A, X% The thing add

Operator

of from line Hedberg question RBC Markets. from Matt next the Capital comes Our

Your is line open.

Matt Hedberg

of deals I you speaking QX first expectations generally typically second into congrats Tier very these three into be if on half to can about quarter, there. all, your nice X can see should Tier this then momentum pipeline talk Matt, the X curious, possible? wins and know the I'm weighted. the XXXX,

Matt Flake

In the a of thought would. banking have us. tailwinds materialized actually to pretty And the were the for we I steady the last Credit business. started picking-up feel side call, been I we than talked it unions faster how about think little on it like

organization lot sales that. a of delivered in and definitely on the put I on So pressure they QX,

goes, as the QX. really 'XX pipeline confident I'm into QX building I as good as in So solid far to feel We’ve the look about keep it. QX and pipeline got well.

You we’re like plan where structure to Christine bit her add of into a how it's and talent she the Peterson in her winning got wants to organizations. great the time walk around organization, and to she’s place, environment put an for little the

in So the we call there to back to feel confident X about in is pipeline really to will tell into spot. we’re the then think I going that months in August this well a 'XX. it But you sell best the to had I and good you good QX. the market now. be place that XX momentum right in we getting feels certainly And if it's is do better I'm up a 'XX, Tier want continue like

Matt Hedberg

just to focus when congratulations going too background lot on the thought QX? space. actually from gets to question. really interesting my what lot history a a and I level, It’s on acclimated is high of me -- to hire, she what tell of it's Christine, the she she But she Company, great a the probably what on to really, That's in do. mean brings exactly that led going early to second process is into

Matt Flake

I billion FIS, I really involved relationships from see grew be and she to built is her was of a think cycle, able as was way focus couple she $XXX can learn making perspective at the and is the whether take management what experience, dollar from mentioned to And as don’t and do. more $X part around for billion. a messaging things way a right to in and in learn trying from She of her sure respect a she and company does. strategically lot. positioned and going her fence put which not that than dollar that. can come has experienced plus company her build our she as I But and relationship that from years. billion over much as determine have Because and amount I in a tremendous the somebody appropriately, of on before, to there in look she to is going wants to think a these be company this I us. doing we’re we're company million to a a learning's a customer we're it's that’s she I we’re revenue they that life into

it's So having valuable. played is in it, a people really through out been

So great she a hire us. for is

glad on the We’re fortunate to is have team I'm her she and now.

Operator

Our next question comes of from Terry from SunTrust the Robinson. Tillman line

Your line is open.

Terry Tillman

question, two questions. I have first My

and use I hire use first The flexible meaningful is it question it? way and did first spark the I X and it us Matt, new with the could and could where API, you do the in top to the they even also can of about maybe something this Open QX, X on the help that a underlying build more question But comments technology. would Tier to just the win. like prior Tier how revenue? And activity new on could

Matt Flake

it who happens so after than rather Terry, as before about it good news are you somebody we happens. talks know,

So I’m product. the QX optimistic about very Open

their seniors. augment strategy It specifically to them these be veterans, be and product, mean before. to a financial enhance products. us rollout -- of augment to institutions, and think because we in might rapidly. begin it be able might product, targeting. largest and natural been be it some to allows Tier a is ways I to with millennials, this can They the world fit haven’t it might and may institutions whatever It’s that in to APIs X I the for strategy FinTech talk it There to right their is financial they way enhance for

us there that products. very a into that to about one So time, We excited knocking QX we’re But the there. the really give From little look give we’re to as partner we Chime in like. roll out Last you on give fit a see that Open activity we it’s And a plan the lot you first me to is but and to a bit the half of quarter. model natural But little talked banks. rather down tell, a FinTech going as are meaningfulness side. how can well. steadily year with of time Bank, of our with next this look that quarter capital that, of more good out news

Terry Tillman

and enough and operating revenue good ’XX And from help operating kind think Thank I to do some keep if giving they’ll perspective, new were further Jennifer, guidance. as with you beyond? an investing bookings. recurring about into more HX just on have you. leverage of But overall us How growth without the guess, versus layering leverage, the actually formal us balance for you

Jennifer Harris

from So, I level that into we that’s sales the that XXXX. the given pleased continue to we’ve capitalizing the year, that in that marketing think in this were leverage leverage R&D And the going then fact amount the this ‘XX. development of I’m really see with from software reduced the especially next shown and capitalized line about good by year. we’ve lines produced to that XX% we’ve And I year. operating operating the and G&A expect into that leverage continue We’ve both you’ll

the So that more makes R&D. about me leverage even on excited

the to couple of think I’m a revenue I have range, to I that So analysts see going targets the XXXX. talked leverage. with XX% rates that even at our pretty we still you’re EBITDA growth at to outliers the believe And XX% about of -- that that comfortable where exception for continue adjusted

Operator

comes question Davis line the from next Canaccord. of Richard from Our

open. is line Your

Richard Davis

like then cost? have growth of on it is Or A Thanks. asked. I operating get do -- But revenue change lot Jennifer, you a leverage, follow trajectory? the any more is say leverage to you you up. a we have happening have over your expense and when planning growth fixed plans questions what been therefore And are

Jennifer Harris

But I place, year-over-year you’re the growth infrastructure of out you’re beginning necessary cost that that. mean, see the of beginning we and reductions to moderate because any got we’ve don’t to level planned. have seeing in I think some now scale is

Richard Davis

QX, or then And that question there second that technology they acquired vendors to not were the which firms go to? be the go would did is of

Matt Flake

from perspective, it's the we're usually competing Henry, are I referenced, primarily. Pfizer, all that players mean, a the ones competitive FIS it's we Jack those with

maybe On the bottom corporate you it's But in a little bit the competitors. ACI. line normal side, of see

Operator

Brad Craig-Hallum. from comes question Berning next the Our line from of

Your line is open.

Brad Berning

well the year? move you've I was innovation payments on other you on at the an if rolling update side, as us as you’re thoughts initiatives technology time wondering that checking can give the where some pipeline, you you've update got as got us in spend for along on remote the out accounts, on the and PXP

Matt Flake

lot you side basis, We're I'll PXP. seeing that. PXP of the out because but out business, so of we're real coming some on of We're in, growth activity of Yes, mentioned low seeing Acculynk jump a on other partner, QX products, XX have PXP. the product talked really and third the we XX to their Data, in SMART, of From ground in about the some happy our we with First quarter. -- the

I more the system their that about anticipate running think that. end the data And user through we of the by having I than actually year. have base XX% of

CorePro something backends. and and great of data into the service. and the go CardSwap, corporate The lot continues some that revenue valuable input we’re generate customers integrating the product, our lot talked on into just QX about to So banking account is provide Open positive. help success, be investing. I’ve collecting, make an you’re very materialize where to and our are of sending that's and that we It's out which going to a stuff all-in there continue can or side of great a opening out investment of obviously, stuff many ongoing hopefully we’ll progress. of aspect is that. of And We're

continue to a going is of be we’re there innovation going to that. on So lot and differentiated by here,

Brad Berning

think the point the some you earlier And at follow-up give guys you'd current about in on talked some have us I corporate as about thoughts give some on the year, start that. Can to side, contributions banking out? you that roll metrics you

Matt Flake

have Yes. higher fewer -- I financial There’s as users, it I I if know provides a for on talked don’t about, user. us. you. it ARPU metrics a but more think for we per we mean, does any

out the it digit We and what’s contribute it from out what 'XX it. corporate a to to going year does single But in probably haven’t it's see broken a we in we’ll end as perspective. million, to ’XX

Operator

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

Your line is open.

Brian Peterson

the the on taking that point, and fourth this getting view what we quarter. this deals pipeline momentum for on that think like if about for quarter. Thanks the Tier quarter And looks X included the question, and congrats three

focus potentially quarter, getting the fourth potentially in deals we coming fold Just across deals finish Tier more X the you line opportunities XXXX? so could to thinking those of help about on more the this in

Matt Flake

them as I mean, to want you as in whenever soon can. you bring

got the done and bookings, more the them X then and usually quarter X, not the And just end to that Tier we've them of QX a are big by of in there got year. third X Tier Tier quarter, in punished that, but for so get nobody is bringing across. still out from

so very on laser execute confident but those we got now focused we’re in just I'm And to for QX, said, I done. the it. pipeline deals And on go getting like

at here time good a QX. it's So

Brian Peterson

maybe for least quarter? that, continue? gross the of on Any is some Thanks you And just through was should this as expect Jennifer, referenced. that headwind implementations what we norm at help the new on XXXX, guys. And services margins, these talk

Jennifer Harris

said year seen, been have levels, during would Tier rollout, margin. similar more of revenue, past about our than et is and been we would or I’ve say XX% X we services year XX% phase it gross the elevated or had XXX have points the basis believe X. and of this year improvement X a having what Tier I Tier in at of of in that cetera total at Xs you this mix, about similar If Tier services because And been the if I is the significantly some

fourth did half signed really on the again through there and what then they’re actually there. deals and deals Tier rest headwind go X quarter, get in the shift want mix I impacted. whether the to the this could going other a of look year, be might at mix of the Tier what then and services into back or the see say year, is, on at once all the going I’d produce X year determine to And close So here live rollouts the of phased next

could be I But remain year. Tier I believe this X, increase year-over-year continued we’re mix in if So don’t it successful elevated. significantly that do that to expect to then than

Operator

Our Joseph next from comes question the line from Capital. Vafi of Loop

Your open. line is

Joseph Vafi

pipeline. a Matt, on the maybe, you bit talk First if little could

the parse for for deals of differential see the player may us If function, perhaps the terms maybe incumbent versus the in you legacy you perhaps that coming you out on as for up see event a in that technologies that could on I really focused And looking renewal that the year next some then now perhaps percentage focused contracts just where pipeline best from banks a are helpful. be follow away have of would available up. in marketplace, perhaps in there is adopting banks those the the

Matt Flake

Yes.

So the Joseph, is, typically, front the answer change do the way question they I’d have application well. think, as back most and competition providers the of office -- I a doesn’t office

so institutions to differentiate. financial is use the want we’re to to what identify do the way that technologies trying And

that so And trying innovation. to leaders drive we’re trying find to are ones and tech the

my being the back that we’ve goes in are said those long end I the the winning right around on for And So as banks the long haul, which ultimately side the focus activity. winning and the deals M&A that want earlier are to the we think we the the past, selective, to we’re we’re is it as on naturally piece, gravitate up and like and comments M&A as in towards of just banks deals well. going right be to

or to is at We and that operationally sort to long us. a and to haul make a there So just try this those not focused. with are determine in is those strategic and seven of banks a commitment five that one go year looking from have then which them perspective out really difference willing --

Joseph Vafi

make than number of out finally just successful shouldn’t given rate anything why some Is are more But CardSwap, Xs sold want the Or quarters, in bundled is on in as then thing. on specific deals QX? or specifically of QX system? there would was Xs -- actually that QX. Tier to that that call that anything the then And out higher to it's the in standalone this And your of provide be But is to there great? just a that win was year there you Thanks. product, Tier or clearly all that and competitive -- could were it in much callout, with sure. other to I be that anything is a know

Matt Flake

for of Thanks a the shows clients we literally day CardSwap in CardSwap. where less instance our is a standalone clients a it and had hour. in and or group other on -- up XX product. asking quick of them we We turned an XX than

can a So that platform. into the it on turned is product be

the as deals sales quarter. plus getting hard. They and is execution, a As quarter pushed really those of think the into back weather team. it's just far year, when about events third QX everything the They in on else, vacations -- brought in. into chaos and the all There so the you lot it's

side, the amount QX have the of the as well into They the out business. and So built I and the Tier also, as executed want gives around said, me that as me, makes give work to cost tremendous team they sales X all confidence of X the I X, just do just the that. the them then Tier Tier credit. going pipeline

Operator

Essex from Our Brian comes the of [Operator Morgan Instructions] question Stanley. next from line

is open. Your line

Brian Essex

Jennifer, kind This maybe Matt is for numbers or of driven. Jennifer

that and a to gotten this -- a about expect the amount that expect last And of margins, same the driven? and should could talk we marketing now we driven growth had the year. rate bottom of to quarter. their you've maybe XX% You this leverage revenue of than be of how line, forward? that build headcount quarter year, more going sales accretive you Can lot Is I mean, of off grew it

leverage in year, do next there? better there or more or the same to the is anticipate So

Jennifer Harris

kind or expect better of year. next leverage into same the I

bringing our focus Christine their I have in even fully think group ramped is is they more that quota part, fully And that improvements. believe on with some for team now are going sales the productivity XX to most staffed. I year and

Brian Essex

And maybe Matt. follow-up then for

and As your of customers one I foot composition? on the platform attach deals, rate bringing as then customers to X attach And to are with noted you that new door or on kind rates? Tier just on is get came build what’s full your your customer. pipeline? a on, coming what customers your then as the of think the philosophy expand in you’re pipeline and larger bring you higher incremental of What's trying

Matt Flake

both. I of it's bit a little think

want As technology I’ve said looking too times differentiate. as to call, many use to this find are in the we customers way that a to

continue the investors want a new a in out share. of You to have drive innovatively. to this and you we position in But we union talked enhance a older have some And to know to come on and Umpqua, out maybe there ownership bank to or that to trying stagiaire the credit line way not about will great And is then are grow an that door a a market thinking of technology some get situations call. Trustmark that where you example as group takes their us that’s and new innovation, cost. get getting group the like -- of us leaders more down foot over there and bank use they in our

built that ago with had that's to the in and with cross a biggest of we've the the on retail year They delivered history you’ve Company. ultimately everything. quarters, over the of some them. us Corporate at experience, the products, relationship had if couple Southern decided of the sale look And standalone go side the other Tier And quarter, to of we they this the corporate earnings these we've bought in calls sales. signed X the listened you past because then

we products, begin our to a we how on then about so And the believe about the in we relationship how for them service door, and understanding building how getting build customers, continue them with differentiator a our is future, build And we huge think that. to we’ll us.

we’ll build if account. So whole them they in the that. continue to If do do know and want I’ll and to tell service, to buy we’ll buy get And and just banking, that. just thing they to our but them provide expand we’ll and wider we’ll they if corporate it, want want we’ll the great get we’ll products relationship and great broader retail,

Brian Essex

now where forward? versus historical, Any either terms in trend, that to of going how expect context stands, rate and attach to

Matt Flake

right now. into look with I go But detail follow that that and don’t have Brian. you, up we’ll

Operator

question next from comes the of Our from line Ramnani Arvind KeyBanc.

open. is line Your

Arvind Ramnani

QX to feedback much has business, this could about SMART wanted been? from if client can differentiator And a nice just future? that for little Is you’re drive if intelligence it also how I is helps talk just and expecting you or it bit and more -- that talk about impact you what offering. really the more this a has

Matt Flake

the the customer. by in I product in And every have is, the we you ground company. we time this history products the as year. new that our with start close have I think I the I of And XX to to million than getting a users lot of what through the think in ground more said, of by -- think Arvind, rollout of we we’re seen end system this probably QX the end X with SMART. the are run We’ll

to And the of differentiate. and but how we the So technology of what us for of center of lot believe we’re to do is collecting what the that have on I institution the based And things is buy in done you’ve think your past, these view a compete data. one at future. don’t data you financial a lot people

months data than sale help XX than a us. so you’re product able to begin XX% And ways get of to something for in And the that -- be, we’re that then less or to a work think we customer through is in less having examples ultimately, running going were through SMAER helps user’s it, the business for of QX better to products, provide going there is software service. the months, to I many see as we data, through XX

may some or looks reach of is actually a or business. system problem, that flow see cash and like relief, the a them that’s retail and also may that on a to You see you who has credit somebody user, running the line out on somebody

offer third sale more them you party there think could So we to ultimately, the products side. products to then institutions. treasury these opportunity corporate potentially or is financial And on

than ways in So that begin it out revenue for. to give they generate what just other money can for get they and

So -- It ambitious like we’re be very and our product our a going is customers these to But that build compete will allows build. time that very product the are haul. with believe just fraud analytics is work takes we product differentiated. and for to it and we for our keep is to -- product, to them a you updated corporate long

got software than cost generate pay customers revenue sharing really much opposed And to we me. of to an revenue are conversation about we we’re helping have we point, rather once So how can as just building that our where we them. think ecosystem get a extracting that to you out

whole gives us win it’s and growth think, a more differentiated legged us just that of help in deals. a more I another

continue deals, enhance does adding to and differentiating and we hope So But it the keep SMART it I’ve it exciting of sell -- right sure be will a it, is it’s talked meaningful you will value contributor product -- things on that for we’re make it the to and us now, winning continue revenue and us will future. an and it going on we’ll that to all about. be in it updated

Arvind Ramnani

luck Thank you. year. the and for on That quarter rest good was good helpful. Congrats of really

Operator

call. you are conference there no today’s for concludes Thank this questions joining, queue. further in And and

may disconnect. You now

Q2 (QTWO) 2 Nov 172017 Q3 Earnings call transcript