MDLA - Earnings call transcript Q3 2021

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Operator

Good afternoon and welcome to Medallia's Third Quarter Fiscal 2021 Earnings Conference Call.

Joining us today for today's call are Medallia's CEO, Leslie Stretch; and CFO, Roxanne Oulman. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. like introductory the remarks. would Roxanne over I for Oulman that, to call turn to With Roxanne?

Roxanne Oulman

and earnings Leslie time Thank website. on quarter X-K release, conference the our please fiscal on Mike. to With XXXX a Stretch, you, Welcome access today CEO Investor call earnings me call. to the SEC. see of We today the the the and Medallia. our furnished ago Medallia's President To third release is Form short press issued section Relations

please we statement pandemic. this and results risks and Before the To to operations statements the call, vary we remember our assumptions, COVID-XX account into take future begin, during about uncertainties, of extent possible, course including will the of and seeks forward-looking may impact many of Medallia those that be forward-looking COVID-XX. related making involve the the to

risks is statements the any from the assumptions implied However, actual If any the fluid very to of crisis and statements. forward-looking these uncertainties differ could expressed that results on is incorrect, those this constantly forward-looking or or the if evolving. created related statements develop, has or related situation prove the pandemic materially of our forward-looking to

X, with our filed of the For a our issued SEC, We release statements, forward-looking in our any the XXXX. with statement. the press disclaim update reports any refer forward-looking including factors XX-Q discussion risk to associated please company's text obligation to September dated the today periodic to Form and

measure to GAAP a press refer today are performance for measures. regarding reconciliation today's refer is On these additional the disclosures the discussed financial non-revenue GAAP measures. The release of today, financial to and both unless a to figures GAAP and number. is stated financial non-GAAP will we Please call non-GAAP non-GAAP

will we release trended medallia.com charts website performance over our that performance Relations conjunction earnings evaluating and on the in the in with under metric additional understanding that aid have our we at identify believe posted time. Additionally, report, Investor of our section,

turn I'll Now, Leslie. to the call over

Leslie Stretch

afternoon, Good Roxanne. you, Thank everyone.

prepared for their hard would begin to I I thank my like Before remarks, work XXXX. in every Medallian

Alan the reported elements, and employees position enterprise emerging insights customer research It's evidenced earnings companies and eighth detailing video employee was provides intent the ability in experience in feedback, new Webber than distribute the to future with customers it seek digital last from Medallia’s broad As year. in clear release, including nine powerful and insights growth more to In engage feedback voice, to quote that customer ideas, markets. second their dialogues, our IDC’s and priority future ever. in that by recent actions, is information powerful from press key from existing, crystal gained deep and organizations with organize and to sources, agenda deliver direction. IDC’s list have and risen programs critical and capture, great unique our

a Turning performance QX, our the was with pleased quarter. very to our I review in

provider of believe I new we all quarter We again, revenue, added XX%. one technologies year. we ideas of that voice had these our and our business new income by Medallia logos as growth mid-market have video, last enterprise listening, customers XX a almost lives, our We revenue over business We voice and operate well completely grew voice, record QX today. to since we revenue recurring and XX% deliver. our continues as go And our is virtual in and XX and continued increase SaaS logo record in operating asking expectations from exceeded text a employee ever. analytics, market having had customer, unique messaging. of Increasingly, see research, best social for to of

customers. enterprise projects. larger led more some XX over We We than implementations, including the X,XXX of had now partner also have

importance Our capture, engagement activity our technology capabilities. communications new signal underlines of and log the robust deep broader

accounted XX% to for quarters. new XX% approximately almost prior New as for compared bookings, of logos

XX% logos New new as almost XX% for for quarters. prior accounted bookings approximately of compared to

in our the X banks New KeyBanc in of the Canada, Modelo in company services electronics Central our X of in Brazil Land Latin top Brewing first giving UK, new National IZO; logos top X in with a in banks Bank manufacturer Colombia, Singapore; logo America, partner, in Brazil, included a in us Rover the and North America, Radisson Bradesco America. new U.S., Jaguar the in XX non-profit of Deutsche financial Telekom, major Hotels

notable In San We Tempe, also Diego the had GSA, sector Her signed Land the FEMA, Woodside Homes in we Jackson City Majesty's Services. and Hewitt at public Tax of of wins Utah and Registry. City

pandemic, Digital the Medallia to Australia Medallia patients. plans information pharmaceutical provide for McDonald's company healthcare use already to to in is tracing. and vaccine providers large a During using contact

largest value. cross-sell Our renewal multiyear well in renewals contract also the major million million agreement. $X went renewed technology value. upsell of in with A and A insurer a contract and in renewed and conglomerate $X total Japanese total total the in million value major contract and technology strong one communications million consumer world's expanded value renewed businesses total hardware contract renewed in major A company for $XX for quarter $X action.

$X line renewed a total contract contract in for again $X over cruise one had total and commitments, renewed our also for in million $X renewed value over We million some another value. And million. retailers for

to resulting our from I'm fast acquired with and and are bookings some pleased so Turning seven new but good growing, new technologies, commitments. our tuck-ins acquired very from logos technology. figure our in Contributions far small

out the this approach In in addition, the industry to have our analysts manner. platform group building commended

our Specifically, recently feedback, The who and management We year with closely evidenced capabilities by differentiator key new our about of engagement we've Voci, deal success. which core power as work other of institutions, acquisition seven the signal Since that action-oriented offering this forms logo and have retailer, a see signed a our platform competitive Medallia center engagement win six along focused several figure we large figure deals our across the with Speech, a with financial with now combined our six competitive new with is large four figure expand of capabilities. verticals. essential contact as our I'm pleased broad range and customers of and platform. breadth strengthened experience with acquisitions of a the capture, of deals these rate technology several frontline made Medallia technologies. the speech

this for beyond. of and showing power we natural understood StockX, core companies our for programs on Medallia largest it's of largest new brings growth Games, Stella also some QX QX, customers with contact quick-serve of live-time been FiveX emerging addition of already future an into to game These cloud announced delivery. the Stella a by proposition capability a pivoted one the Experience noteworthy the one customers. and in Experience core is well and And Connect and case and manufacturers offering. important opportunity technology the companies. the Medallia QX virtual to has and this Digital contact has retail Riot simpler the space importantly, Highlighting one week. feedback curbside partnership central largest is SenseXXX our one sold digital recently element of largest new With These is of of Stella in in experienced the Cloud adds significant proposition, well existing the and is new use the service including environment prospects. division by growing consumer digital to restaurant emerging which pickup Our that future the is publishers, new initial live that e-commerce Connect of There's of capture cross-sell. the the promise e-commerce entry the acquired deals contribution because fastest points world the world. seeing now acquisitions a added we've to making of go customers digital are but center our bring banks agents Medallia customers, of Medallia's their represent but and platform, not for bookings own, are with one had the upsell We the our just they cross-sell good retail Medallia and cross-sell for largest their it world's three signals. which automotive world Stella us important center, to Canadian our because Cloud capabilities dramatic is potent and contracts, center and today. of the specifically received with and electronics of This large

e-commerce deployed calls of a In case, analytics XX% in experience and with our Year-over-year use large Digital with call we've a resolving speed a deployment XX% bank cases. Both discovering the Medallia technology seen time across these reduction a contact and digital major Specifically, this examples casualty web proving lost of per everywhere. nearly issue Medallia $X realized single Stella resolution One and insurer property large Connect our real solutions. that Combining clear result customers. area consuming in center teams, worth Experience retailer center Feedback in revenue. customer a Medallia million the to was we and digital this And over potential and one XX quickly savings U.S. and has of Digital. technology Cloud combined month delivers wasteful users. a rolled mobile repeat can use another in as in increase a case out is million ROI app

portfolio. X key support Speech to front, the with expanding On added we're language product for Medallia our being languages

Medallia’s Zingle smarter conversations platform response delivering deliver compliance in messaging HIPAA interactions announced to sentiment rates. the based and surveys, customer quarter. We faster Our increasing customer adaptive achieved

model. Slack platform, cycle core customer success mapping and Teams customer in added added and Zoom, our our life For we integrations

HR to post experience feedback through from Turning interaction. added employee digital solution to and enabling a we've employee engagement digital get experience, micro our employees in-the-moment

we on XX% over of went from integrator quarter. XXX,XXX now have putting influencer one partnerships in of the largest increase our the employees implementations, year XX a We a implementation platform. targets, technology employee ago. November, this company Just with We our experience the started live

a in with that Jaguar, capabilities. for new data and practice. Quickstart several together Deloitte. We I ServiceNow continued had signed partner Oracle wins agreement and makes Medallia and with saw acceleration earlier. Tableau's brings Land for Ipsos solution reseller highlighted Medallia, advanced to service to it feedback. Medallia's agreement with in-the-moment close share easy experience Rover, a We analytics customers win a partnered We formalized Deloitte’s Connector new with insights visualization best-in-class Tableau Our new government joint

in [Ipsos] UK. ISV the we [Vizia], Latin new including America Additionally, partners, over a in KPMG and signed dozen

Our professional own again our We us, customers to our direct is strong strong Medallia a performance business from differentiator go-live services and QX. and made be margin clear this delivered feedback by in and continues for implementation. a revenue

industry Quadrant highest in mentioned, space and our the the vision. very of positive inaugural to proud for for received This are technology a Magic were I named As be completeness about we analysts roadmap. previously week, leader our Gartner placement

website. You a can our copy the download of from report

and leader We and believe our employees analyzing our testament strong for the customers named the functionality clear deepest be that roadmap the to who to and our collecting recognized our have indirect helped we relationships. and thrilled in that inferred are is direct, It's the are business. a We who this for have feedback, we shape result vision. and and best partner vision

business We using our software highest average also we highest vendors. experience with management that as operationalizing over can the measure departments programs from X,XXX number out ability powerful Multiple the customer and as of for client percentage the clients our of confirm our of experienced programs. well have users, customer for unique value scale, analysts of and voice all vision our capability recognize to achieved

growth consistent pandemic three solid with quarters performance. pleased now the company's us, We our see So we're with in behind business.

to had by underlined deal have life start executed. again sciences already strong X-figure a We a QX,

providing today the of view coming we're preliminary so a high-level And year.

and leadership. projections roadmap product diversified in our user our end Our technology markets, confidence reflect

not we on However, It's to our in projections strong space hospitality where the significant recovery a travel do important presence. depend a and point out have

opportunity. intend we very to meet and financial for in a her grow, to report now the to invest Roxanne QX to sales, market hand needs in over performance our I'll we As and product forward on of marketing continue significant projections.

Roxanne Oulman

And strong total record results revenue revenue. QX including Thank financial you, record in and good SaaS afternoon, reported We everyone. Leslie.

remarks my As a noted, except during otherwise numbers all quick are revenue non-GAAP. today reminder, unless mentioned

a In find prior release. approximately from today's acquisition $XXX non-GAAP announced contemplated fiscal revenues press from XXXX. You increase subscription to revenue $XX.X million subsequent QX of or SenseXXX, it increased million, for over our Total in thus, was $XX XX% million, guidance. was reconciliation were of included QX million, at GAAP an call, subscription QX can results and was year-over-year. earnings to QX or of the revenue $XX the which not in XX% of $XXX,XXX

and for in works flexible invoicing negatively on we've additional On customers exchange subscription certain extension for terms, we existing subscription the for As modified terms past basis. what pandemic. modified QX with approximately revenue million average, call, earnings by few $X we or our the extensions projected noted Consistent of period the in have year-to-date year. a the on approximately calls, contracts by have subscription by our last one hardest on impacted terms, payments, $X hit million

expect in XXXX economics. of We no on fiscal our mind of and a has keep impact in similar this. impact as long-term in we fiscal QX XXXX to It's this current important lapped that QX

is than a As contracts majority with X% year-over-year. Recurring $XX services services more your honor expect of XX% include minimums, was which our reminder, consistent irrevocable, professional the to recent which our million contracted quarter, services managed revenue total the we multiyear, for revenue of increased Professional are quarters. revenue, for their customers agreements. accounts and

to continues of be XX% recurring revenue a As revenue. at total result,

metrics. some Turning to key

to continue we and logos. nearly in over our customers, enterprise increase XXX approximately QX, new SenseXXX. X,XXX a Connect growth with logos XX ended new of XX% see We Stella In and an strong from quarter We year-over-year. enterprise the added acquisitions

months businesses believe ROI our retain October our bankruptcy and M&A drove within XXXX, our to the net retention expand provides retention the existing the XXX%. We retention rate ended customer our steadily base. was our and in strong For dollar-based net rate Customer rate. ability XX, and net change underscores our platform XX

Turning or for remaining obligations. RPO performance

previously, as shared impacted metrics renewals contract have be our multiyear duration may I of As with RPO contracts. extensions, you as of and well timing by

may quarter-to-quarter. fluctuate provides RPO it from for strong while visibility, So

is as of XXst, total October recognize $XXX XX% RPO RPO of increase XX% amount RPO, of expect year-over-year. million, increase increase to $XXX XX an year-over-year. XX% months the which $XXX of million, year-over-year. an million, was the Non-current over Current we As revenue an totaled next totaled

year facing margins -- renewals. -- compared I'll and gross QX as metric now margin gross the of was subscription XX.X% quarter. year. the QX XX.X% basis now tougher a to a revenue year turn success a our to multiyear to in XX.X% In ago of expenses. compared year versus are margin gross RPO in result operating last the Subscription year non-current our in was last We comparables non-GAAP ago in on services gross professional margin XX.X% signing

We focus to partner on ecosystem. out continue building our

marketing G&A the R&D to or XX% quarter in of XX% as So, between in we QX we expect services quarter. for $XX.X professional million gross were the expand QX. Sales to and million $XX.X or $XX.X revenue were in margin moving were million remains or revenue. XX% XX% X% revenue. our an expenses expenses expenses area, platform. of R&D important investment of

year. leverage net negative Non-GAAP last quarter the X% ago X.X%, We $XXX,XXX the the to margin G&A the in longer-term. $X.X QX additional a was over Non-GAAP was of expect quarter. of in line loss operating income compared to million year a compared in on

non-current $XXX in in with marketable cash convertible included the current and to Turning proceeds sheet. upon the the stock will to million, order revenue a reduce not dilution, we in over is capped that potential XX% diluted $XX.XX price per of or purchased the conversion, $XXX.X prior share until approximately million balance with the million The the offering convert securities. note of from notes cash connection higher. be and the ended September. increase equivalents, an was In in deferred year. $XXX.X Subscription We cash the quarter call increase

to revenue, on discuss plus subscription define which change contract billings, assets. subscription revenue subscription we move sequential Let's and in deferred as

rate a know, that as performance. in our in not is changes billings month the quarter-to-quarter wide subscription influence of measure future meaningful indication XX fluctuations an revenue. factors We metric. billings should a of there As more trailing growth believe be you this that taken variety are Therefore, of

was fiscal month approximately due XX billings over XX For that by invoicing QX billings subscription basis, of with a trailing were subscription growth our month XXXX, rate period. On $X multiyear impacted new bookings ramp to XX%. trailing terms a million, negatively

in negative million margin year. representing the used of operating the an flow. We QX in flow generated cash Now XX% XX%, turning we cash improvement of negative from last to operations during $XX.X an cash quarter, from

flow historically experienced occur we reminder, XX% in the of seasonality billings operations, quarter. a fourth that given As in our cash from over

positive been QX, operating QX being and as As the in our this a past few QX QX, negative flow been followed cash it in for from by We continue. anticipate result, operations, both flow and to cash has has years. seasonality

guidance. to Moving

rate For QX, to representing a to million we growth projecting and XX% of are year-over-year. be total revenue million, between $XXX.X $XXX.X XX%

to be to the range of growth a $XXX.X revenue $XXX.X expect representing We XX% year-over-year. subscription million in to XX% of million,

range expect $XXX,XXX non-GAAP be $XXX,XXX. we QX, operating of income to a in to For

to expense environment. and to expense convert $X in between income outstanding to We associated be anticipate reduced an weighted and with interest basic due and million. and $XXX,XXX be other million. interest primarily be to be taxes shares project income approximately XXX expect weighted We We approximately to $XXX,XXX, diluted expense the million to $XXX,XXX range the XXX of outstanding fully shares rate

to capital be we our a to data primarily our previously. revenue On basis, are a rate approximately Finally, representing we year in $XXX.X enhancing to $X million, our is delivery be million number in anticipate partners total single-digits, year QX we XX%. projecting to full expenditures of projected have XX% the significantly to customers’ to Professional low demand. the as revenue as meet expanded million services growth Leslie $XXX.X of centers discussed of this related growth

continue industry packaged we implementation costs to addition, preconfigured our reduce solutions. In through

approximately revenue of XX% over the growth representing million. $X year. million prior concessions that estimate fiscal $XXX.X we $XXX.X to of million, of create XXXX, the Note COVID that For projecting a revenue are rate we subscription subscription headwind will a

QX over to We to subscription X% a fiscal our XXXX made revenue. little expect in the contribute acquisitions we

XXX be we to fully outstanding be weighted and diluted XXXX, shares weighted outstanding approximately approximately expect basic fiscal shares XXX to million. million For

ahead, preliminary finalized Looking our diversified and have XXXX planning our we execution, end a we'd we leadership cycle, confident as remain provide outlook product for to while fiscal in not roadmap market, year next position. like user

For subscription digital conclusion, area customer intelligence fiscal total approximately revenue $XXX XXXX, has critical an In approximately with and be software to spend. of a integral we of million $XXX million. is transformation revenue of become expect part

innovative take committed efforts. to now will our opportunity the Operator? maintaining our are R&D invest to go-to-market and We and Leslie I and questions. in your edge

Operator

[Operator Instructions].

Credit from ahead. from Brad Your comes go Please first the question Zelnick of line Suisse.

Brad Zelnick

it much so Leslie, first nice your go Leslie. digital more touchpoints into value Does you if you the close and the my be thank for the future, How of will for solutions? that quarter. is needs users more Great, their easier of more as of a customers for likely on changing the and to that all more questions drive helping congrats Maybe at experience loop management? and taking make versus with how only and your has so it digital highlight customer help feedback physical, business? customers

Leslie Stretch

I thank think question answer, you. a to great that's

our I else the really think that than in digital the story technology. investments. plays digital anybody We early invested into earlier

about more think that technologies you it journey every people and intense to customer has urgent more and that now -- become journey, faster, serve changed, employee communication all has situation. that the If speaks every it’s way strong, it’s

and longer technology, communication got winded, then our medium, create so physical technology, And that more our in still your orientated that's type powerful more so you've important. But our a voice, surveys. if -- different all is and on, Survey to conversations effective of world. just much is all back really the than digital responses video, instant

have, changed, intense. spectrum more think with up, digital is shorter, that And have capture is the everything had rollouts and is the speeded we journeys And in XX% we're of remind in of so remarks everything positioned. highlighted I in actually you, And beautifully described of question. you prepared are growth some highlighted what I customers I digital that just digital effect large we an your the that everything

Brad Zelnick

can And shared? 'XX for us Roxanne. guide fiscal what you’ve maybe your you initial assumptions just Roxanne, that with follow-up the for are share

Roxanne Oulman

that there still 'XX in and I experienced we've know, strength our the So in our we're about with or last planning at also or be the based business and in FY and fiscal what guidance as our what pipeline. not on 'XX. in we're we've guidance posted and XX% put confident and of looked really we we're what strength subscription year. are travel XX% provided we for our will quarters, we the we’ve with any together, excited in see, And recovery two this growth guidance, hospitality process, 'XX you anticipating rate significant overall, we And our FY see the fiscal that

Operator

next Phil line comes Wells of from Fargo. Your Winslow question the from

Phil Winslow

that to couple the return applications. success side traditional employee highlighted other the really space to I the the vendors We've some into over something past was -- you about quarters. ATM drill experience want heard some that work into from of

and when Roxanne. return So work But my together to both, of employee then them just question about are to of with experience? for talking we're what And in hearing for from experience, you to and a Leslie sort that that. you up customers terms customer tying one quick follow planning also

Leslie Stretch

still is HR situation highlighted is faster, XXX need more domain honest. the is the situation modern instead effectively think in annual the to and to normal we're with and players the I which of kind of mediums be exciting review, that that of this traditional communicate the whole

is time and want depend for not to groups global to seeing to to in employee any have and spaces people and and between questions what communication, structured they a communication be virtual ID toggle we're want sort want ask global the dialogues school to of ability able create safe constituencies. so survey. And have at to anonymity on old we communication, They different want

large new we of them, to -- large prepared the very my and one really employee are And we've one to live. in We so floor. I not and quite that call mentioned last highlighted allowed name a we remarks, think added customers that's but large had experience on just I coming number our deployment very go

periodic number talking the connective And organization, think moment, effort. create it's this I degree they're at I reviews, as to priority really old to everyday, a it's technology everybody one served so even tissue. what But yesterday XXX in critical. surveys to And would and I regard major talk

the we're think permanent it's people I a the of in future. So very feature well but positioned

think I began. pandemic were having in of type called as in capability the people place this out not communications

don't they doing to team members, digital a how our once we're our are, going how got colleagues, is place it's technology So we're and think going back safe year, to to I away, or a asking that. employees, think creates things a go our that be consistent communication and our go

Phil Winslow

up, do may you've actually do Then now. what noted you which one that of hotel, some obviously just one the But was follow the as impacted some restaurants, surprising, industries when spend customer wins about ways about of hospitality of Medallia think is be why this more do I are the telling some impacted they they now? space, the on people prioritizing business here, with you issues, quarter, reserve, some in are right spending in what anything think you

Leslie Stretch

connection. context, employee the apply of those in customers too, more reasons really messages persistent to prior the all deeper, over Well,

decent traveler, the return, the recovery. be corporate have on. they actually well. particular and so the domestic the On don't need commitment just expect some sector has a hospitality, decent-sized the to some -- and the occupancy. traveler, side of hospitality don't the travel, make ready They We projection. are there. said, that it's this planning do a not for leisure and phased want the But that we travel leisure corporate domestic business, return had traveler, as on But as to Roxanne And

platform, the have. feedback to I they those the to renewal that renewals. offerings to technologies be that have technology, were I we need been team commitments to want And some because I what times, cetera, consider has But or we do the that video, want all integrated encouraging. also renewal other identify making is move stress and they been reason they the don't year. past, company voice, in even important of them highlighted large renewals all the this there digital there, So, been in areas. highlighted there. they're But modern, team very it's That's multimillion a of tried survey my has distressed embarrass technology. And any And throughout et team, to dollar

Operator

Your from line Tom Please Roderick go Stifel. next the of comes question from ahead.

Tom Roderick

Leslie, that March large start eight if seven off of that it quarter at seems deals fall focus I'd the So deal like come paring what of activity. out of calling and a and I think were I the more and rattle down. in this the certainly then to large figure you. guess you're we with mean, point, in back what And quarter, and feedback number by, harder on you number remember the I a to we different you in sort the renewals to midsized bit deal a saw going then to And deals little summer, them the is like of renewal industries.

And could demand deals upsells helpful. some those So, customers’ talk they some seven notable Were and as usage on seeing bigger more of renewals? part commentary cross-sales? from those you I Were was would you really if Just eight that sort expanding of about highlighted be hoping environment the more you the renewals? purchasing deals. to particular, you figure in could sort of speak more for broadly of those

Leslie Stretch

Yes, great question.

in another our is our thing QX not quarter, biggest actually March this terms is think month by reason is So, quarter. cyclical early I the not to renewal But of in renewal renewals. biggest highlight I But those the that's key wanted successful nearly we wins research and bookings weren't of came we We wins new saw many in in and the low-ball deals they won competitive as survey enterprise market players XX% the were. putting of that share logos. from cases lion's where new

well. we now a have as year And really performing old, also the renewals. had this we mid-market so have very business we And that, young,

so And the it's really across spectrum.

fair to our have we're Our decent something we're no renewals nice, of are goal than share actually where deals. getting and from more getting solid mid-market, share was our enterprise some drama the quarters and even

will think and XX% in business QX upsell that the But was had. continue. just an we've one for it's of highs it’s our think nearly But mix us bookings new and new and so is renewal So our interesting the I compares. and of from quarter of I was actually cross-sell key highlight harder QX one renewals one ever the quarter, bigger

Tom Roderick

Roxanne follow-up for you.

a if I questions have know been you getting you you've acquisitions. think, acquisition I fiscal coming of 'XX contributions, I said lot of correctly, Just might X% heard revenues from and I about think the

do loaded, repeat acquisitions a those to acquisitions But you perhaps that how those a revenues, they'll how And were FY can't the what annualized you your independent like-for-like have, you end apply we closed GAAP of they're could and just of that. could initial -- any 'XX going think to at just that. Thank we fashion, they about more to as you. don't you is more can provide look compare acquisitions take could guidance? in fiscal if contributing you that then contribute it and sort then perhaps, commentary knowing that, 'XX? at to cumulative constructed So But know back exactly, were or we those to what answer project and when your if look ought

Roxanne Oulman

for these from take really is an are and from shared we Tom. looking for What I the on You’re -- grow make the opportunity we the to the is we acquisition it. are revenue very acquisitions, looking and revenue technology When this that call right, acquired immaterial.

on wins on using these and very we customers. had logos. we're in have that you're platform. possible do As industry the have We've we customers. you when you're figure previous seeing we shared best seeing And with Speech had several build the had we the And our seven we've our with shared new in deals. and make successful technology seeing one, product. we've this you're that very that six focused our the to figure large, that from we Leslie call And out Medallia some And in work get acquisitions, closely our with that feedback as with in

amount we're upsell year continue the So to next out building our this this is nominal. impacts we and it as point. amount impacts that it technology nominal, at is year and focused successfully have and is platform to this that on ability this the as What cross-sell

Operator

Company. of question the Berg next Your comes from Needham line from Scott &

Scott Berg

me. for two guess, I

way talk ends week. versus your this a what the relationship, and you active where I has maybe starts contact you it’s And center contact the it -- and Medallia company acquisitions. you First a nudge couple to of your announced gives in FiveX where space has in there center that all, active been guess trying of Leslie, been Could functionality today? was of or about the partnership

Leslie Stretch

it's question. great a Yes,

So brand-new partnerships, I've just announced.

So a the I be can collected of of that unsolicited view that customer. think a the there's much outside multitude call of center richer give signals solicited,

they collect, we you feedback the connection. collects, the get that underway. in have a makes more days sense think of customer. good with that have of data some vital combine FiveX but data to joint absolutely some partnership, that of picture and that initiatives You some And customers Early powerful much joint perfect all voice the good and it

service complementary, in-the-minute Stella again, center people. Our ideas product Connect is their distribute to and live scripts to now the really feedback sources because coaching, using virtual create coaching distributed data it's their those and

helps space. actually just that rather combination deliver is in responding this are leader the a certain I'm than environments. I center idea of So think changing. FiveX contact Those service

with happy partnership. that really So

Scott Berg

question And has for the Helpful. of it. XXXX guys. front. on active M&A and XXXX back then you last half Got circling been

months, it XX the any over just you to the of acquisitions at of company XX As forward time? opportunistic terms changes you one in pace the see materially? Or think in point what you next look really for do is being

Leslie Stretch

product ton The of there's market gave some lookout. the underway presents small We're buy always I developments building. some Well, building like more I the we and on some opportunities. of or mean, But without there opportunities, away, moment. than giving that everything of a are I we're -- we're at we think always the technologies that really of building things. which summary

there We we be. technologies platform number this are that are the some number have -- like. of -- There data a AI to technologies really there beauty of are a of signals, of number that is

I that. opportunities focus to the that But expect It's the for we're so remainder year. well right us continue of and to arise. process as financed And as and when the other just take expect they of executing our companies part now, do year. I on We're approach. for do Right focusing let's remainder we'll now, But about continue. to of on in execution this SaaS

Operator

line from comes the Oliver from Rob question next Your Baird. of

Rob Oliver

right of guys all renewals, a other on new question, guys? looking a I much into Tom's to Leslie an very might the with the follow-up came mentioned but and the how it opportunity I have line renewal at just the particular the new industry. environment? a also multiyear when a industry revenue new you of this obviously, logos. you and to those be you spend guess does those in does to didn't with had like distressed half something bookings particularly you curious cruise year, I'm that a and technologies leverage I'm customers just you any who that park much now. I at quick call of $X with past give down from touch to wanted And renewal the over distressed out you look how of technology industries, you tuck-ins But Great. mentioned, come made sorts want give curious, additional when but then customers, otherwise a though, recognizing small a And with contribution just maybe it million cruise as you innovative or follow-up. line,

Leslie Stretch

a question. That's great

actually, futures These have breadth they actually. and to I apples-for-apples been been of think the of That's big really of companies and a value. gives offerings our gives bright add ability feature. renewals. types we have our futures, fungibility quite that -- have and offerings And modularization us these started more us they out the certainly, believe not

is of very their to connected and future. positive And are about the future. deeply this their be upbeat so part And for they investment

expect much we to do result. hook. actually actually a acquisitions. from on do cross-sell we people the the haven't them upsell as So concessions keep use as bookings expect had and We revenue to expect -- We that don't

travel with it's to don't that the for safety? We what We operations you to. do to if time magical future. for dialogues a the even are that conduct What important, need and would way the do that with in their they them, they from and the expect haven't that not quieter and learned dialogue lot. right connection. need What have technology is actually, our don't so they there. I which prepare PPE And we for So sector, some have vaccine-driven really customers depending is we've in people so recovery now, in on a want expect post-pandemic? seen and a determined. you won't But hospitality, we we're dialogue, the had -- from future, They've very say our projections. pandemic, But

Rob Oliver

$X also Great. that just And -- you had if the been into then, multiyear I'm billings That's said had of I gone you to that relief you ability over that that renew some apologize, I might alluded have the previously, providing customers. the think guys time component -- think Roxanne, with Leslie. helpful, million billings curious I impact are of longer to a And to a that a on frame. is but contracts. to

Roxanne Oulman

that have time. with customers So we what the about when we was that ramp billings new limited I referring to situations invoicing talking over is the had was I impact

year So in may invoice we them invoice them in the the than second year. we first less

that that, providing seeing is some you're headwinds. so And

is on working think this only essential what we're product all every that everyone in so essential future. We today the can point in customer. a is really And have industries. all with customers is but not we use at that focused we're And

customers completely example, and we using and health Medallia who -- different. -- sciences have new is that this customers, life using for New technology care

have if for as to billing effective us. become build very if and -- And providing both helps that of we that's we're they and grow ramped as so they their platform, them -- continue

So pleased really we're about overall. what we're seeing

Operator

from of Baldry ROTH the question next Your comes Richard from line Capital.

Richard Baldry

completed scale. by fairly late expensive SaaS So material turning back to vendor another acquisition potential. of of one Seen a

So changing companies you rational? still your the do in Or to? in you're see of price sort expectations you it's communications? that talking sort some is rationality there Do of dissipating how think of

Leslie Stretch

a That's question. great

our Of didn't We're as also find well winners frugal course, irrational deal, in management are step in you done a and buyers. we overall. up and We're with very the we flagged not sales money is technology quite were enough in revenue customers' marketing, But very because couldn't have team, a at our which know, look, not money that. have under -- we be the is there of a contribution looking sofa. that -- to much they of in to history a bit early from lot why days. and as that's we invested don't investors' like not and early-stage tend why We've

extremely at ago. back well. our now, there digital look was an done acquisition It's you product If years

messaging If and has you very so ideas our technology, well, at look on. done

do consistently had always And the looking their always that We companies, more steadily. they market, business right? and at to if criteria be money, keep They companies growing they're looking because at they you than public target like. may really think private we're talk worth -- going haven't so kind discipline billings, to the at of way private making

technologies not call. to And competitors not always in interested yet. to. them reveal this We're our to that not scaled who We're in we're listen yet. want interested smart so overpaying. We're to things. Got that a Don't few

about enough actually Right world. We've in kind capacity the targets. some but investing criteria. are for setting So stop actually should do up we mid-market around And us next sales year more shouldn't marketing. have that hiring going pretty really that executing of build to to and now stiff it's projections, big salespeople and keep our got sales QX, we've underway. a We that program mean we got in

road and lot money Our massive, map time that. on we're is of a spending and

And so all of important. those things are

Richard Baldry

monopolies more COVID-type who of when wins what people don't of they're a in think are of in to maybe government positioned. on their service or and a back turning I as people active But your to tend bit environment, just little but a given touched bit. in you particularly agencies like GSA, think interested FEMA them And

can what you broadly walk entities government sort there of penetrate or federal and us dealing markets? maybe you think with any private So how you you behind versus industry, see through of can those types the mentality

Leslie Stretch

and local Yes. state, important. is that. you academic because I respectfully great for education is with that. you Rich, question. I'll Well, come federal think I the Thank -- that on a to one, this And disagree really but

brilliant new want We to any tell also government is that the Medallia best themselves be citizen avail of experience, of our experience. care we every I brought health life have Why QX mentioned already for the different? and absolutely the progress life into hard Think deal, seen patient tier you sciences colleagues government work of very moment, patient great and, and in that also should and experience can progress at some experience government and of great sciences. technology. they I citizen team this the good from about passionate a

market. that, there. And name logos crack call. had we absolutely the up-to-the-minute FedRAMP us had market, to to higher to qualification the There's survey to involved. so right also simple we few that, only part structures agencies after nothing there, government in gave good on than for of survey in report for success sales services. cost-effective, and the want to marketing technology We in a overcharging that of a used on going it frankly, we through our in make couple too. the intend And market. fish ourselves old and well. investment acquire experience versus and a we at easy the academic But as that's actually, around that academic that lose more a the citizen to commercial have also call. education didn't we've the actually frankly, We shooting survey through for the positioned world market, be And It's And barrel stuff a don't players

enthusiastic actually I'm about So progress. our

and ago. of local. team And couple We the in to and both year, have those strides at And a really make I year state mentioned government have a forward, started almost sector this federal nothing the there. great

question. actually. I think a Great opportunity big it's

Operator

Your from next Oppenheimer Schwartz from line question Brian & of the comes Co.

Brian Schwartz

do that here Are to It's year. next geographies there's bandwidth for is product expand Good areas more that it's quarter of so investment front you. and/or doesn't in enough that the just anything question you here. there got on today? job I has that with or to big opportunity first sales where profile any in sales see a you function the the on everywhere, you realize lines? question But hiring. the out a have there company that stands either that. of really terms Leslie, I product to and understand geographies It a particular for

Leslie Stretch

life both great And of Actually, also America great Latin mentioned. big new with big the a markets. there. and federal, in those health some having out EMEA, sciences. Actually, more and There's to Yes. leadership, I also kind verticals of question. the a lot to I a great there. actually great We're which of business care verticals. is a regions, had alluded in are a both us do had QX and Geographically, the nice phenomenal for team a in but also recovery regions QX, success which great APAC,

the competitive much read see. the want created. and dislocation the see those. transcript digital in up opportunities all we to call the that's investing spectrum regions not But great that and all spectrum, catching the that too, disruption on competitors frankly, with just and and I detail we're We opportunities, we've so for too into go people in don't that of And obviously. those

can exploit. we gap So that there's a

course, of and EMEA always all day and America. North APAC long, definitely So

Brian Schwartz

And a the one just one number. in on base quick for Roxanne, dollar that expansion

do this sort teens some uncertainty there normalize metric of quarter. is peg I ahead? is had pressure that you you feel of that here kind why in You much. would comments, would that range better area do a in company you this quarters in down But don't bottom it out still that, lot you -- your market. know the it about the here mid-X out talked the introductory my there's want an question too feel But of I at? to

Roxanne Oulman

bankruptcy a have or was I acquired. not either on to quarter or net the with high expansion who a historically, customers were new but rate merged we So teens. impacted some another an been as great we And for also call, from company the filed retention from in had shared perspective our perspective. by mid- And only logo

XXX%. shared before ahead, get when over be should we've I to able this we net ultimately look rate However, that we retention think

came customers logos. new XX% of X,XXX over have from We We bookings our point. at added, this

regards the of feedback different we we and it's also and broadly So these that the most just a you talk portfolio used departments that the cross can fact product not with very the analyst And most it individuals have modules most the Magic we've heard that Gartner XX It's robust throughout organizations. And about Leslie received other in -- on sell. with to we have expansion. sell. the the platform and robust is cross

we what what about optimistic do can see. I the about in I'm future. I'm optimistic So

and X,XXX X,XXX can continue continue to while that we have logos. upsell cross we customers to We new new sell to customers, add

Operator

from Your William Suri of the next comes Bhavan Blair. from question line

Bhavan Suri

to echo partner company. congrats, little touch the was on your a new collaboration of adds. bid solid. systems bit especially outside on Let That the me a want to logo I acquire really

You with part Salesforce, has this obviously partnered global coming SIs. Leslie, as Adobe, of ServiceNow been well as your plan onboard.

partnerships. us as partnerships on to You an they're delivery I update partnerships. added your well give as performing the the guess both software according expectations, just how the

Leslie Stretch

in but I'm Yes. a quite announced days, actually new pleased. are and see just most making pretty we less the I it's year than ones too. early of some these can

longest these field. actually appetite partners, integrations. in the our so the And And year teams second pleased the channel. days channel what in Adobe very we I'm with I see And early probably ServiceNow done. for actually collaboration with There's very good That's one. have also the it's the were with collaboration. now. just

deals, They're of day see large Salesforce, And some in ServiceNow, Adobe long. all these there. all you'll

actually, agreements So really thing, partnerships cases, that. in integrations our There's bolstered win share revenue good and and is about these and no it's doubt some having a rate.

very now. a systems done Ipsos, some Deloitte integrators, it's and early really we've very pleased very at percentage probably partner, in I I the think well we've think top partners, with work Accenture again, we've super got partner appropriate, them. partnerships. traction company got great ones. meaningful particularly the new as that's is but attribute I days. those to research But actually, single the which are increase But with. I'm also don't wouldn't the of out market new those the any one bookings some where I

either. only we good. So the really partner far, and these the don't any space. And do, think companies And credible, enterprise any we that don't pretentions are I do in so of open have that anything we to do

operate new important these I see. with deal as is in think that we we scenarios that them

Bhavan Suri

Yes. That on of, question, broader second actually a me it. question, sort touched to leads my you and guess, I

sales people certainly do force encroaches marketing. don't there's people to right? for do obviously, action. touches lots pretty automation you the Like but you example, the bit. just So on not someone what lot in a this then someone don't But and of a category on encroaches call and of things, experience hotel is How like customer analytic and overall analyzing just gets doing on of are think you do It of bit SFA, and communications a about It experience, through a go the the encroach little e-commerce. It does little it. on also nascent, to technology space? itself do it, encroaching routed calling sort fix them. customer the the gets playing that Because, biggest certainly

which love But how think I'd great today that? about yourself is the bigger you you of than define where you set would how to to understand. box obviously. understand are do That in, sort be you So

Leslie Stretch

a great, question. great That's Yes.

there's equation, surveys the It's is truth for of changed. -- But we use I story. now things. no there. part for do value. have -- journeys customers for And it's road all it signal means as our They're not they're Twilio want. actually, Simple and And digitally, feedback, nobody do added by doesn't in say, And the don't the against think customer SFA. messaging that. but don't certainly underlying marketing, map. creating don't spaces that. have The the those safe really foreseeable partner. us. technology, that and with up butt this customer-driven the in actually is other future, great feedback We transport you of They're does customers of Even right us really don't actually doing these. the it of environment, doing a plenty that. It's the fast that demanded a the room do any understanding getting of any for whole capture it's we We core of to it current

feedback using individual customers. feedback in send massive want out really sell marketing try about That's of them a powerful. before a scaling send with at individual computational marketing and Identify best them those challenge, to to the You in understand of campaigns its that, customer, the and you is Adobe else feedback this through benefit something campaigns one the situation is move right? -- context campaign.

a as it's And really We've great market next of maneuver, a say, complement. the should emerging got just the It's really plenty for that market. the in years. of room to So it's few digital foreseeable nascent plenty room and it for you think along. have maneuver feedback all I been future into

Operator

question next from Citigroup. Drew of line from Your the comes Foster

Drew Foster

are as seen who or at And enterprise the with Medallia to volume from tech whether we've perspective. of about same for a a billings, kind varying companies degrees such it's software transaction the quarter exposed you're thinking more As larger QX time, space important very is of bookings and yourselves obviously success broader across typically a demographic.

could and some and mentioned points gauge initiatives of, kind Leslie, proof out cited among quarter, mean you help would also deals anecdotes that or sort I priority some year. this rising confidence level closing the customer deals if CEOs double us mega wondering quarter of forth. experience you on and are Last so even larger your click So and that

for potential in of maybe But you're QX. still weigh of gauge operating especially here just deals better So of pockets kind evident around just for are slightly deals risk urgency getting happening. and strength sense done, to wanting us or customers large large there environments it's seeing help

Leslie Stretch

not Yes. most we've view notably. that life observation. And markets and sector start that care think in world But this deliver. end, were realistic of seen moved year certainly, we've health government a Well, I that's new to into we sciences the and to our really

-- the story At really ago rising saw we excited sectors. But -- of really feedback successful, same about a so up deal on a So was time, some I'm few too. we're more in dependent some hospitality a that. although of sort big and we've not for while seen volumes travel private on a years those as and Medallia, very now only company and

that dependent not on are anymore. We

get of all that talked into can that with relationships spectrum concepts, large us too, will We customers a deals about have broad very proof people we to ability do they QX. enterprises, of points, and and of so do ability proof trigger those pull they're show kinds the land familiar just more like expand, to some in --

look get So maybe conservative account taken recovery. QX all even pessimistic working. way to to we've We our account has pivoted the in taken FY taken at plus beautifully digital, virtual into all a view We've that projection don't into that We've we the that of and the to to pandemic because 'XX. beautifully company a need has pivoted

companies is But ours, where we're at other I from coming in I why that's So on And I that. of We'd you're and understand now. rest X comment. the story and I virtually. highly all together, your pandemic it. our appreciate feel get had be the We it. look QX. it. control collaborate to how physically of to all all like We'd like we'd do understand quarters and be how We It's all to actually effective productive. and to

Our customers like it.

of think last that as you. the and of who mean help about could bring contextualize year, start can this for bit kind quicker little one mean, And we're here, of think come us now next back you I obviously there to year expecting quantify commentary, verticals if guidance that a have really helpful next than out we potential you a have impacted verticals I just been uplift either we positioned. the what for well some those or year? we're Leslie. so And That's you contemplate I Roxanne,

Roxanne Oulman

So you're have numbers hit anticipating hospitality our need that, to shared, to as and that a We're I right. not would significant recovery we in travel.

do I what think too they if an you, this upside. could it's to recovered tell from hey, early think I

some And though. travel that. about just if hospitality it's upside be and number to could there do obviously, not However, we our

And broadened portfolio. vertical fact We about talked overall really and health we've sciences have our life the of care.

their with seen feedback the communicate in using in our tech, especially communicating working bringing are back as and they we've able vendors, getting activity people factories, vendors. However, product lot also them. to of high be with to a manufacturing and companies They're their their need to from

and are So about those before. our their a of -- all different vaccine using who's is it McDonald's part in talked to Leslie hadn't aspects products that seen that And contract tasting. pharmaceutical you for using company Australia, we a

in to upside product our So a based throughout product organizations, and breadth on we're regards the seeing of usage of verticals. multiple the of our lot these

and So it's hospitality not transport. about just

Operator

Your next Tillman Truist question comes Securities. from of Terry from the line

Terry Tillman

you yes. I space. spare the But question about collaboration guess I'll a

did one new hire had on important gen gen see new the I seems the area. an our but I news for in the and talent, touched reports, we but know and Chief side. demand Digital on of So demand you're kind the of it lookout Officer recently, always on

us that follow-up. you just kind move. what on quick instigated perspective a Leslie, give maybe, had then I And of could some So

Leslie Stretch

this. you, Thank on mean I can't Yes. People events Yes. and No, depended do question. question. events, everything's classical you Great that super Terry. changed.

for some won't be able to do time. You this

see contribution just award-winning if and event. online a to I've the the the actually digital, in time to been then a I the we've the And on few digital same marketer. to and world and sessions pipeline we've try create around your We're he's people event put And cases sessions. never live constraints that replicate there And it in web done last create you begun and use you temporal ban creating see record the to the on that many for digital thinker traditional only to and an about take short, customer able think action. live Henson the classical months, live so impacted out sharp, as is and event, physical highly activity.

And so us now. it's everything for

we've to coming the all class to the Medallia.tv, marketing, to broadcast, digital marketing -- that. things it. you're team we sharp, of see want short, fore. got these do be So And And in best team certainly going to the at

aggressively, we why effect We I and already moved from to the quite was expect we I'm things feel that but saying not more that's quite that, -- so it. big much how So it. about quickly, think see too about the can pipeline, there but on

Terry Tillman

look And in very know one modified Roxanne, just FY the is great. I impact deals But million but billings for by the quick of concept things about going and guiding dynamics and lumpy, at way. $X-or-so do you subscription I Or all start level, would a from just to again, you ramp be maybe, of you're to you kind 'XX billings but as and kind really idea same you this of more some into next a know to could do subscription these next helpful year? That's of you year which and the total revenue, and for like you're year, the had like not that, of that deal could add? of high you expect think to that -- with talk terms.

Roxanne Oulman

with dynamics some of the I we've dynamics we've some Well, that of seen ebb. those think ebb worked will because

If at quarters. been you consistent the look X impact perspective, a the the over concession revenue from last impact concession has

impacted concessions customers. differently, include those said made we haven't additional that So

So the impacted. even we've that renewals cruise renewals with have or had our I retail significant line, been and that question had, the companies someone about asked think at the you we've hospitality when also with renewal that look

with seeing -- I the this year impact much So said, that less. think to much less that we're start that should be more be

Operator

Your the BTIG. from from line comes VanVliet next of question Matt

Matt VanVliet

on good I right. lot maybe there follow-up growth. strength sector. a the public seeing of guess and some A All

a kind how of here quite of to next Or Is expected bit curious high you seasonality? around you're several the watermark still that. see strength Just on seeing typical annual be quarters? the quarter on do third a seasonality in

Leslie Stretch

global. true into. it's Well, watermark local But that we've also we just it's perspective, state a have the really federal and we're got but I high from think getting

the the that probably we're in largest progress UK in fair, the be have the and We some in have in all public making sector They Germany. year, employees good public To first in after it's place international. sector. world of the

is there not a actually, so just about there. It's And all spread federal.

them. very modern very away crying out the academic with are baggage first coming We state in we've a that now And provide Indeed, can our I'm some perspective, the wins stupid in in is which which position big and new plan they made built technologies being that very market, we're starting taking And at really a space. multiyear of that technologies a have begin used any that engagements, we're going survey of more don't some to important. simple local, digital our with and survey happy had we around investment. for pretty first we're and exciting. all are a our is federal, work, So from fact, than where we

So public steep buoyant sector kind just and the fall, of you spending not point out, not normal the I'm as federal across about year phase.

Matt VanVliet

a you are taking land-and-expand of kind deal? pretty down customers early number That's platform looking. smaller slightly low how Are of I more just much they on of TCV? what the the are seeing side, some look know some modules great. if those from of those And of mid-market portions deals or curious even comprehensive a really then but a at of total like it's Or it's larger

Leslie Stretch

But have, a vendor. survey of homebuilder that of have. research this they well-known actually can over I actually provide, realize that fully seen the mentioned have they call. market a digital customer We've We Yes. couple when And all fabulous were we they them on it. can a got spectrum We was everything. and modern we really long-standing

great think mid-market like have is actually But expand with land our we I want success acquisitions what's people of so our And the surprising that about Cloud. LivingLens. do number Medallia some and of Experience

Our can point. Cloud. to ideas ideas Medallia entry technology We a from Experience great is go

growing salespeople, in is terms So more growth still customers. much have much the much point but small sell salespeople, area, talented relatively in for that for sales But coverage in the fast. offer we're to terms and spectrum solutions our to us virtual so we of more that more in powerful we're others,

full of mid-X-figure interesting really a come people Digital after good some just Cloud. to LivingLens with that we've size pleasantly see of with the Medallia been So might surprised start the simple deals, start one -- full or the story. of radar video. but we thought number actually might or Experience some deals have of also start but survey with might the And not there. we along number scope of But And by the have it's them, they

Operator

next Markets. Your Knoblauch Brett question from comes Berenberg Capital from

Brett Knoblauch

Just one for me.

side, expect customer adds the the really on something strong mid-market are think increased you partners continue to given organic maybe involvement from would in the success? I quarter. that and Is

Leslie Stretch

it Yes, is.

I we think our talked pivot big marketing. digital we investment and in to about -- really

the beginnings added as We've just in to mid-market team. to our beginning I substantially see the we're sales think that, I pipeline. of mentioned,

them fabulous our And deal We and program which it academy effective. we in growing. that onboards big people brings is makes have still team, have actually and a

through there And do do so is well yes. feel that 'XX, QX and I absolutely, opportunity the to for through us also FY

Operator

to return will remarks. the for Stretch now closing call I Leslie

Leslie Stretch

again to We Great. look taking the you with forward time Thank talking everyone, soon. us. for to all you,

Operator

Thank today's concludes call. this gentlemen, for and Ladies conference participating. you

disconnect. now may You

Medallia (MDLA) 4 Dec 202021 Q3 Earnings call transcript