XELA - Earnings call transcript Q1 2021 | Exela Technologies, Inc.

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Operator

Good morning and welcome to the Exela Technologies First Quarter 2021 Financial Results Conference Call. All participants will be in listen-only mode [Operator Instructions] Please not this event is being recorded. I would now like to turn the conference over to Will Maina, Investor Relations. Please go ahead.

William Maina

Thank you good morning, everyone, and welcome to Exela Technologies first quarter 2021 conference call. Ron Chief Chief Financial by Shrikant Officer; today our Sortur, Officer. joined Cogburn, Executive Exela’s and I’m

Following the the being prepared Investor we webcast, will remarks is Relations made by your which website Today’s Ron access of which page questions. of conference this listed in is website. call of through is at replay replay on is available available be available broadcast page Exela’s via May press the release, Investor XX, A will take XXXX. Exela’s live also the and on Information exelatech.com. Shrikant, Relations to today's

the call, management's make that are cause statements characterized events as today’s believes, We no as expectations subject current XXXX. any obligation Litigation May may statements maybe to the differ and the forward-looking under regarding of this materially Private results Securities assumptions, XXXX actual and from could results reflect During that of future a Exela any statements. today and number materially from will call forward-looking and Reform of undertake events statements. to that update actual reflect occur after factors financial X, statements performance differ Act certain These that

of factors please on the today's form SEC or discussed information the website. SEC. investor report available are Exela’s Company’s page the Copies release Exela’s refer more other periodic to and XX-K, most recent For press in with risk on along filings relations with the

way call page business. Ron, investor Ron found additional over note turn GAAP be We the the the website. the on relations please non-GAAP conference that disclosures views today’s Reconciliations these During how be or will provide am our on the on our of With Relations Investor call CEO, page we pleased Cogburn. to discuss is to our ahead. and performance out financial call, the this you information the between of of all today’s call also I results operating believe non-GAAP can referred regulatory to available non-GAAP on mandatory measures website. accompanies go certain measures. Please presentation management

Ronald Cogburn

Good quarter in XXXX I from our call. topics everyone improving To especially highlight takes begin morning, our to a considerably would and us QX. grew I on which Today key key with. this performance few everyone away joining thanks first hope profitability for conference call. like which Exela’s metrics,

will behind. BXB in broken in I over growth the our transformation by drives processes leaving participation address Exela's digital and of the customers digital building which networks existing BXC, Second, the roads

markets, XBP along solutions, opportunities Data medium or and talk new and the include which and with growth of bills small payments Next solutions adoption group the These in represent and for asset the we'll these exciting products market. or Processing Intelligent DAG, about Exela. digital or business our Exela or IDP

ongoing about us base, sheet gives all financial talk operational also XXXX driving and then revenue and pipeline, flexibility sentiment strengthening our in efforts highlight we'll outlook. margin and our of will confidence stability Next of leverage improvement, the customer increased which our our improving growing balance we

of volume customer, basis stable year overview the industry, an Revenue $XXX QX diversified of sales. from due variations the our last exit non-strategic recent COVID-XX a revenue, primarily was of million highlights. for with with standpoint. QX and X business were and assets our line geography to transition from Revenue number at slide non-core quarter expectations and impacts from and on today in begin our results let's So some first

well. of SMB where the we profitability represented our including margin Our about of as increased DAG with remains strong perspective, strong, a total new XXXX, substantial business. existing we're in solutions particularly revenue business our and for pipeline our improvement backlog and our our QX growth delivered customers. X% seeing demand is first Through From quarter DAG

XX.X% from was in margin approximately last of multiple and XXX was margin first basis XXX basis this an environment. XX.X% quarter This basis points adjusted QX the gross solution increase an XXX%. EBITDA the to XXX wins sequentially new delivered the new QX key points We points for SMB solution business points expansion small increase adoption in noteworthy quarter of and year-over-year. and Our in basis is business recent year-over-year. were showed XXX launches DrySign our QX medium increased into wins grew as SMB we digital our and well. looking the kind in for. QX, respect With of mailroom sequentially This XXXX. and growth is market users XXX% business almost customers the strong our

segment for this of Our pipeline this in grow to have plans expansion business. and we continues further global

for As PCH execute Global March, Global this of agreement year cloud $XX insurer. first U.S. announced deployment has early million also in we with deployed to the our XX hosted licensing PCH customer. healthcare this we platform complex previously claims digital major Exela processing to large Under of its exchange end a delivered end

launches, Americas, Europe, and global Exchange solution announce was new I Asia XBP the continental markets. our and the regarding refund the into the Bills to of or Now products Payments and expansion for happy

during to transparency more are our offering send Legacy corporate electronically chat and fireside enabled they bills processes we in processes manual receivers consumers the and biller the their expensive, process. simple recent Now discussed inefficient give billing is businesses XBP and bills platform inherently with a also analytics, their with transparency and one at full for don't options. that to place the bills to into payers companies both allows fraught today XBP length and all alerts, payment receive [common] payers reconciliation. and payment It risky,

XBP was customers our providing existing calls. implement with highly also business we're rollout of Processing to updates with new And their and interest our you Intelligent Our to IDP recent run and excited our on forward to customers provide based critical accelerating processes. platform. secure, IDP Data look or an easy scalable, cloud designed environment about future across is I solution garnering to

leverages and future continuously intelligence, existing across generate industry Exela's to customers. results library customer our for platform processes deep and vast and architecture, knowledge improve learning rules IDP from artificial Our of

talk is are fireside our another join on Next We or excited DA into go on chat you hard for we'll Automation. XX with we're working another further and about. to cases invite these how solution customers. the Process for bots to RPA May detail Davidson Robotic It's us used where digital our

Now turning to initiatives. our operational leverage improvement

Also, a facilities’ highlights the to us mention our to organization We of rationalizing completed have to our our optimizing plan to we workforce. couple our quarter, enabled initiatives important here. XX% our our continue increase reduce first automation multiyear of in footprint, footprint. In

March as XX XX,XXX Our XXXX. total XXXX compared on December were as XX, of employees to of XX,XXX

sheet, and flexibility on strengthening our focused position. financial to respect balance we our with remained liquidity Finally,

a million As proceeds, via in March, an we in mid reminder, offering. raised equity $XX.X gross

turn to let's X. slide Now number

with processes. experience employees rely plus technology plus the across delivery verticals position significant customers will be call we I solutions. XX% centers over opportunity Fortune we sector and XX this of last XX,XXX think slide the commercial, from you and of but that to Now fully over our their important X,XXX stack, banking, and a serve years illustrates globally such public for and business it's the strong deployed XXX, heart healthcare insurance, on earnings With the many XXX including of mission addressable of to market critical as digital it familiar have gets and execute BPM market our Exela's customers

we've opportunity parts include and management just solutions, human replaced integral management, scratched our Now only our solutions, and of my operations payment work believe liquidity customer base. which work information of capital with anywhere communication. technologies technology We market are terms customers of and we and significant day, current surface they in solutions favorite the a day-to-day our from course

to the with customers, world's Now let's and largest slide many of I'll number have note valuable, that enterprises. turn deep, tenured long including X. relationship our we

Europe, powers financial we're strongest tenured disruptive our is revenue and and an digital insurance positioned further industries our us Our and U.S. the our projected strategically relationship focus XX from moat. widen of long Exela's Exela in recovery have customer economic years their solutions banking, in what customer that with to largest for engineering average innovate have and to continue benefit low and foundation launch we're heritage customers posts the in competitive growth. to been CAGRs that Furthermore, COVID-XX. like positioned the with a on healthcare, with most of enables services, the well concentration this new the

Let's turn X. number slide to

the mentioned of call me into segment. heard beginning at expansion SMB the You the Exela's

SMB we market today significant leading While is believe have for available businesses. untapped customers, our small it large enterprise significant with whitespace a potential we an opportunity and medium opportunity. solutions represents future and we Exela for for strong see our

confidence Here's and that in some give stats really our some us recent stats offerings.

mentioned I strong number customers, of earlier shown the As call. of the new the the growth in page, very SMB which on side seen in left we've

XXX% anywhere solutions mentioned, quarter-over-quarter from digital DrySign we a up increase XXX% I work quarter-over-quarter. up driven For an by demand in it's mailroom, as for is the offer. that

With the achieved space the to so to within market to far, Americas, processes bring Solutions, subscription Europe, business and success software or more based SaaS BPAAS plan a we've Asia. SMB service we service as this across

digital our profitability. and licenses software Now and platform subscriptions for strengthen our backlog our improve

years with services. annual X maintenance customer well. as They enterprise contracts renewals, support and to gross generate to margins Our tend be also XX higher

flexibility Now month that features per contract are to solutions and are and per different. Their be customers cloud our for hosted SMB user our a marketplace. little tend with ideal

to transformation in market today's tailwinds business global The increase is grow reduce well-positioned your strong generating productivity remains Exela our closing, process cost share, automation in sector. modernization towards digital environment. and trend of a and So for

relationships enables Our with extensive to technology trusted long in investment build standing customers. our us

widens digital well. Our solutions new deepens and our and as and multiple patents competitive process moat

customer toward we As benefit strategy throughout we volumes weights pre-COVID and of XXXX. the performance and improving execute anticipate levels against normalization from our renewal

cost on on Shrikant guidance. we're our Shrikant? and QX future business, the and through expansion reiterating more results our will turn Sortur financial continue With flexibility. detail. numbers prior our efficiency execute this, XXXX call our to while strengthening improvement we're to Based operational in to I'll CFO derive the continuing margin focus We the in momentum run over to and balance on plans to seeing our sheet our

Shrikant Sortur

my morning, In take segment our everybody. the remarks, for discuss prepared and through Good guidance I'll and Ron. full consolidated you, results revenue you Thank year.

to margin are report quarter. and growth EBITDA year-over-year adjusted margin this We and happy sequential gross

the appendix the done are in reporting we filings and of both the and our have past, in are The non-GAAP numbers. presentation. reconciliation GAAP in we As

in primarily of our and COVID first This the slide segment start a decline look our totaled the volumes. XXXX. quarter basis Revenue quarter XX.X% a year-over-year from for XXXX decrease million decrease XX.X% and at and of on by ITPS our first for is reported of first A related Let's $XXX.X XX.X% $XXX.X million, million quarter a segment was X currency. on constant results. transition revenue, $XXX.X driven in revenue the revenue review

XX.X million, This by from $XX totaled revenue year decline primarily the segment was in a decrease ago solutions period. volumes. of healthcare Our XX.X% million driven COVID

Despite our legal segment in reflecting flat decline year-over-year loss million on QX and our and profit $X only revenue prevention $XX.X improvement declined gross was essentially by million, focus operational the Our $XX approximately ongoing our year-over-year. efficiencies. revenue, million

the basis basis quarter margin primarily first due better costs increased to year-over-year and Our for reduction revenue. profit and attributable XXX transition XX.X% management and points sequentially capacity stranded gross to cost the XXX points the of to

our Our our revenue. in offset approximately due to impact France benefit $X lower full the reduce non-cash of improvements. nearly reserve structure lower cost for gross ongoing profits were operational restructuring a by to million from The charge actions

sequentially, will XX.X% despite statement year-over-year professional advisory costs expenses totaled million $XX.X in we to delivered the down XX% and down QX of of in delivered Shifting QX higher representing year. million the and income this expect sales. sequential XXXX year-over-year of Going X.X% SG&A in subsequent million in for SG&A prior and decline EBITDA We fees down which year QX lower adjusted compared $XX.X period. we $XX.X to EBITDA. EBITDA In quarters the

our EBITDA prior was Tax, the $XX.X from million quarter included XXXX, of X.X% year LLC. the As quarter million, period. in a gain year the $XX.X of a million sale for Adjusted of recognized from for prior $XX.X up SourceHOV first QX reminder, EBITDA

quarter first XX.X% from the points points was prior XXX adjusted up basis from XXX EBITDA basis quarter and Our quarter of XX.X% the for margin the XXXX. first in

our of margin facilities reduce which work benefits deployment QX are as part solutions, our of cost anywhere efficiencies benefiting and helped Our from which our facility deployments which IT has costs infrastructure just cloud expansion I real expenses. from estate our multiyear plan mentioned, including

operating Moving metric focusing to slide and and X, profit our on performance.

at we As are to by charges an less was and approximately QX management. were revenue gross of and of points for I continue EBITDA QX, substantially QX, and XXXX QX XXXX. XX.X% million versus QX $XX.X profit million O&R XXX XXXX. and $XX our basis up currently our mentioned year for million CapEx run compared with representing in decline in XXXX business XXXX $XX for Also, earlier, from importantly, Adjusted rate margins EBITDA effective mix driven cost of improvement full

on Let's touch our million raised before via sheet we offering and and placement $XX.X deducting other balance approximately an liquidity. briefly In equity March, expenses. offering

XX, securitization global was of for agreement facilities $XX $XX liquidity of March as global million of of XXXX an million and Our billion our cash the U.S. on undrawn $XX credit in additional an million facilities. And credit our committed additional consisting availability under $XX

past growth total as This believe extra the further provide well-positioned the March we we we are We of the of an volumes to SMB for $X.XX return and Our DAG, billion. as XX, prepare the Monday, space. net SX debt was sheet balance flexibility. company filed financial XXXX in to strengthen COVID

remains; higher enhance strategically of and focusing volumes in objective return achieving strong high margins the flexibility gross sheet cost with SMB reduce levered to financial the of a revenue strategic capital by on DAG, quality Two, that basis. Our ultimate strengthen one, balance and our objective growth continued includes COVID on markets.

our of outlook. review a to XXXX Turning

As our we Ron prior are mentioned, reaffirming ranges. guidance

XXXX, year we the range of $X.XX $X.XX For to revenue full be to the total billion. to continue billion expect in

normalization and of volumes, continued levels to business. the assume return new in pre-COVID-XX, winning estimates to current renewal momentum Our rates pre-COVID-XX historical

levels, infrastructure. leverage, and reflecting to normalization of expect resulting XX% higher existing production We of pre-COVID-XX volumes and XXXX utilization improved between productivity of margin to in base and gross increased the from be operating employee XX%,

XX% of reduction and from the revenue with We EBITDA expenses resulting margin and to as XX% to of professional minimal expect be well production operating the in margin with the gross structure. higher adjusted to as capital in infrastructure range, normalization additions leverage reflecting scaling legal improved

of We revenue with recent expect line levels X% and level in working historical CapEx and levels in trends. with of capital approximately historical line

leave will three takeaways I today's from XX. slide presentation. to Turning you with

leverage. First, the performance in operating our metrics reflected growth and operating improving rising profits and sequential with

robust in thank strengthen are please with that to open as third, progress. for much launched announced pipeline, all and joining Second, backlog continue us on SMB today. very call XXXX questions. recently growth balance business the showing to I'd and for plans the sheet operator QX in previously growing you substantial of call to With like

Operator

question session. from Please Instructions] the come Carlyle. We ahead. Jerry [Operator Wang question now will begin and go of answer first And our will

Jerry Wang

Hey, the guys, thanks questions. for

the revenue think quarter Just most it few that not there in least low that kind it first on of ITPS mentioned here. Shrikant, of and that still XXX by revenue margin all exited will currently? of I if you a the at the there call few quarters line ‘XX. the million ago streams Is expectation is be of

Shrikant Sortur

revenue. of QX full one Jerry. marks the of correct is That XXXX almost transition cycle

trended at have We exits. trended it, we we internally at are of $XXX as look million

expected. So that had it's we XXX with in line

Jerry Wang

line the healthcare, uptake year three were if at should see look the flattening I looking your of the on low guidance, look to at some quarters just next Okay, guidance the at even on ITPS that kind or the items, Is something at great. you And for at least ITPS I least [rest], if going at in see end ITPS? then and forward line. you of least few

Shrikant Sortur

anything isn't today, discussions expect built with a QX to year back A there you you up. which because if to pick healthcare to it. would different additional solutions, example, tends remain and volumes flat saw well traditionally of healthcare was into to good for bodes QX in the coming project us The that COVID happen. back guidance see quarter-over-quarter would we continue fact quarter past, are I said our volumes for so this as very our the be up. want higher QX for so. have Again that of color solutions. on LLP we a times say few could assumptions flat driven couple

come growth So we of the from area that within and that as up DAG the in from verticals business ITPS ITPS. and we the of growth be on to are payments to a well is picked few rest different and expect all focusing going as SMBs

Jerry Wang

like the AP working appreciate cash growth were next be like call renormalize around for that AR you looks bit AR/AP looks two. flows X% Great, last to in expecting of it all In you're it or sources It I of moving guidance, kind the the quarter, area. so or quarter capital of that and you you're where few over to think and uses. Do to color And I and that quarters? Shrikant. your right like it on moved little a just outside expect

Shrikant Sortur

Yes.

I'm right the right maybe obviously but the estimates sure question our I'm So not CapEx is getting X% Jerry.

working it from we way even in So the have swings sense the right on audit about thinking perspective, capitals the you're quarters.

to expect that cash either QX We to margins operational additional a get QX. eventually as cash, help a that and us convert had positive you We to neutral will an cash will continue saw obviously, generation and from we between as perspective situation or

Jerry Wang

one Thanks. Great. me. Yes. And okay. for last just

I mentioned provide quantum shelf filed. or color the you the use timing in million was terms any think of Can you $XXX [SX] or that proceeds? additional there of mixed

Shrikant Sortur

flexibility. improve think would general had of strengthening to capital, funds it. we sheet, revenue balance Yes. invest could have we about liquidity. our near Also very it's areas for three I we're the like already usage now, it, as our to past. going No on to mark of about cost said to This two in right importantly that and specific corporate we if was the reducing a strategic and fuel It's be in perspective us -- to could [indiscernible] it really, term. the we From you a at look you purposes to the you growth but profitable extra mainly use focus other in or give

Jerry Wang

say liquidity of And you currently just end April have maybe or May? early the liquidity you piece of can much on how the it, at

Shrikant Sortur

Sure. Right.

end terms March to answer, So liquidity in to and the much and quarter perspective better volumes particular I in definitely is March and two was of month point Jan returns April better one, than compared is a would the what like do of business Feb. from of every

We in April. have trend seen good a

been two, presentation, one. have were. I end in of feel points our our liquidity for good what chosen March and So in is than case at was time better a those we our so you have it what Number in think liquidity April number various disclosing

Lastly, as all I the growth, profitable margin said we at of hitting are looking improvement, parameters etc.

rather So improvements give I think the margin than cash in, to business. locked time in in get we of number or point are happy the the you a better and see conversion

Jerry Wang

Thank you. Okay.

Shrikant Sortur

Jerry. Thanks yes.

Operator

[Operator Foropoulos of will next Instructions] from come And David Unum. go the Please, question ahead.

David Foropoulos

in for or was any the over your seen been we've there remarks the further what one primary curious change release thanks the so to there still One on Hey, mention last was if the five divestitures? was question, this just Thank to Has I guys. color quarters. any prepared plans? regarding is assets four you.

Shrikant Sortur

Hey, about such It's be David. on depend change to we valuations. question. very good plans the it. strategic as most the certainly morning, but for No Thanks in want

I make the do call, one was be sales want bigger to two I last that and of think on much mentioned, did strategic. will earnings the probably bigger, smaller. be it'll which asset that The were we one relatively next also we the kind potentially

on it. on still where So looking the valuation, we land, we depending depending are at

David Foropoulos

Thanks.

are million in believe side $XXX in of and million $XXX still your proceeds here. the parameters to you're here still those I So process

Shrikant Sortur

Yes. is correct. That

David Foropoulos

Okay.

great. Okay,

usually and is little on quarter cadence items I those. here. Are a little quarter look some much I'm simply cited maybe I a what with issues any the more you exactly one and Secondly, through time bit don't higher? the this this those were earlier burn. and there AR cash looks this your think a the ate cash this bit a it of to I'm you just if It and burn I know such? it that capital I wondering bit Was at like little a and some AR quarter. cash one working the timers missing? on walk Was would it cash burn outliers be made were use

Shrikant Sortur

was you assign little capital swings. versus collections revenue went No, lighter. our million, pretty QX actually, sequentially AR that were indicator even QX out, which wouldn't pronounced timers. down but good in more QX XX million look by bit up rightly QX pointed I an way is The What robust, in to at it working were QX pretty is and it a the I XX in conversely, it's by is really A, productions one of probably

that So have we lowered fold.

So not Yes. too.

David Foropoulos

back That got in loaded bit went on. quarter as better little things a QX, sense. if A makes

Okay.

Shrikant Sortur

Exactly.

David Foropoulos

And is cadence the improving. the secondly, Okay. then volumes your you said of healthcare

benefit that's would I the, mean, guys? into with more margin we on procedures definitely So expect you I going discretionary that's tailwind guess for better a going a business

Shrikant Sortur

But Exactly. I there. want to cautiously optimistic be

That's good past up. look to it pre-COVID us. start very flat. is healthcare think optimistic But come I this on and volumes at to going for see hopefully, we late than the as want onwards and QX be was I whereas QX pleasing be some years again to everything given QX will cautiously back tends trend better quarter-over-quarter you

David Foropoulos

the color. thanks right, All for

Shrikant Sortur

Thank No David. you problem.

Operator

Cato Beach ahead. of comes go Our next Alan Point Please Capital. from question

Alan Cato

for thanks my question. right, All taking

So could and transition/exited then just dollar that in help COVID revenue on first you basis.? on year-over-year this decline like between bridge $XX revenue impacts million

Shrikant Sortur

run impact QX again, rate, that's in level, think and so approximately high impact take the But as quarter, for a to perspective. March. transition this XX same Yes XX-XX a XXX revenue start we a directional as said, of transition COVID range impact late or from number. I QX

and XX contribution we approximately from that asset sales months million XX then the other So you X.X from million the is compare impact COVID the of year-over-year, when did.

approximately we in assets which $XX million repeat to two from did last the of not year, QX contributing in So those had XXXX. revenue

So $XX. that's the the high level for breakout

Alan Cato

have like, I I going from you'd with the XQ improvement. reopening see on declines guess being around I XQ. year--over-year Got thought guess, minor some would sequential XX% on, it. to going the some Then of still

guess areas what a still So I of feeling impact? and pretty are and COVID still lagging healthcare ITPS services within are kind severe

Shrikant Sortur

said, right Alan, asked so Yes. and a you right? me healthcare asking you're at it looking ITPS, already, One which as is, legal sequential specifically sequentially. are about I right

Alan Cato

Yes.

pretty Just but have it from on it's to thought year-over-year like I decline would improved easier consistent going XQ a XQ seems comp?

Shrikant Sortur

Yes.

Like and QX into I relatively Okay. said healthcare legal sequentially down ITPS. drilling flat to QX

Our to not This while was tend isn't QX it is, flat sales, from means European it QX, where there's is sales year. not tend pass is, to the QX. digital never QX to region that assets every QX, really through QX QX what QX about doesn't payments every margins. obviously growth revenue get I and sequentially, business actually see It this going just in while to to one what was good the repeated in in time say in in in year, is was traditionally, equipment QX, have we professional and our didn't lot year pronounced. but revenue we that software impact of group of is doesn't service seasonality benefits that QX. mean forces repeat sales What a decline this from that lower But higher Alan good

compression We in positive that's businesses. remains think short, ITPS onsite some takeaway. the our story services united But within I communication had flat. the and long payments

Alan Cato

Thank it. Got Okay. you.

Operator

ahead. next of Our Capital. Oliver go question from Please comes [indiscernible] Imperial

Unidentified Analyst

questions. two have I guys. Hi,

around liquidity. is one First

of you that My undrawn is today? mentioned have AR available available [$XX] a over is, question little part from facility. that the the to You million you

Shrikant Sortur

thanks question. is and Amir, to good conditions. to today us for It morning available the subject

up If we you instead have follow can jumping into address conclusion. of a a

it's subject answer conditions. So us to short sweet and available to is

Unidentified Analyst

Okay.

better line sort help trying with at the how healthcare directionally if guidance. maybe ranges in think healthcare XXXX revenue have I to overall is When it question getting Is the you've without can should we business. you any going XXXX about of just year-over-year given other perform you us? should The versus look get specific numbers those regarding I'm or to or the perform

Shrikant Sortur

business, in pick the as cautiously you that's we is and as look right as months. again the if see returned growth assumptions things new base how are optimistic certainly to at normalcy next pan out continue we we pre-COVID about start What renewal think this the volume will as win the up two why our and is or healthcare I now to our long in that long don't the to know rates unknown as four to pre-COVID space. back as not we

As it inoculation to to happens, wait see additional pan business or as start picked term things in normalcy to where back be to to and that's near the need return But watch revenue up. will we out. there's how

Unidentified Analyst

And margins it. Got Where just broadly healthcare EBITDA are roughly? business. they for the

Shrikant Sortur

Yes. shared at we a only the perspective segment gross corporate From levels of margin at it services cost because on and look a that is SG&A and others.

saw from our prior be on pick to gross historical trends expect gross we our up in land at to you XX% as years guidance we it and XX%. with expect margins So line to margin

we projected. be that we had growth continue will to in the of So range

Speaker

much. very you That's Thank all I have.

Shrikant Sortur

Most Sure. welcome.

Operator

of [indiscernible] Jeff from JP comes go question next ahead. Morgan. Our Please

Unidentified Analyst

one of your the quick EBITDA line. add-backs on for thanks the just one X question. about have you that slide taking on Hi, One

and much You how of Could other is non that of what cash maybe detail XX.X. have what were just exactly non-cash you for? those and/or charges

Shrikant Sortur

other a not in I Then is mentioned intangible charge Yes. are these remarks, [indiscernible], back Sure. it like facilities the number Things assets. there tell which driving non-cash higher non-cash filed in sale a or it higher are non-cash employee potentially the of includes [indiscernible] we that. this there because other [indiscernible] that things quarter see charges to put the costs non-cash severance, mainly and there is facility, listed of we'll queue out this like typically, on charges the Jeff, we your I the you doc in loss QX. elements. impairments still like which assets Those in for to as France in of if We took you, are restructuring our will the we are kind and the for that our details But usually QX. non-cash preempt out. of restructuring address things have customer question, and exit not quarter, part number prepared is couple a that put

Unidentified Analyst

And up is in if one totally that's helpful. Great follow different I may question.

gave the of the you're are it's kind slide products stuff list on you any tell. going what Some DrySign like and some after but segments You the revenue can hard like on newer XBP you X, of products or the give new to on But you the color or tell size? there Can generating? growth us that HCM rates.

Shrikant Sortur

are No you of point our that customers. boarded is Yes. number Jeff. at products this DrySigns because more from of right we perspective. the a color that then about time, some almost into our DMRs are these now. on Ron customers products, will talk digital, in it's revenue time getting Jeff have. the answer on excited I this very early too What can That's and business point And we number are to in problem up meaningful building and not it's Absolutely. exciting. particularly more Yes. our at about for provide add maybe focused we

up. grow then do these which focused have always our us we new deploy us, from have we on to where regular and products easy our a SMBs you will the followed stream to If to the enterprise provides a of past, if lined importantly, know more revenue us continue opportunity we top customers, it's customers, you've lot products, revenue,

you But grow answer on the So a grow. something want in revenue to you little do We color, not way. it'll products more said, to if feel that your color or would if pipeline That want it's it's it the add give that question simple to now. free right some to so. meaningful bigger Ron, bit in a hope to be

Ronald Cogburn

left interesting there. a is food. of always for Thanks out But feeling own you are was DMR phrase people Shrikant. that DrySign and your end heard I've day these well of of some user at the use year. a solutions I I been products the and the what's eat solution services. own Jeff, the over we dog about our users have

soft a roll did tell thrilled among adoption can that we we sec. we're with this confidence that with rollout seeing are out, customer we the I So of rate you that sort as

much per really because user had channel So that not instance up it's for And opened approach. per we within per business. that's us, if our it's a click, different exciting

other star. So now give a this very can at more detail when to on basis about is to we going But we subscription right can in that that us where things and we're the revenue. look off we we're this offer look hopeful at quarters the and take we great around future then

Unidentified Analyst

Thanks for color. that Thank you.

Operator

to answer closing for Ronald would to the now question our over I concludes This remarks. session. Cogburn back turn conference and like

Ronald Cogburn

Thanks, operator.

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us make quarter we'll next and please join you see So to plans thanks and everyone,

Operator

attending you is now now today's conference may Thank presentation disconnect. for you concluded. and This

Exela (XELA) 5 May 212021 Q1 Earnings call transcript