ESMT - Earnings call transcript Q4 2021

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Operator

Good evening. Thank you for attending today's EngageSmart Q4 2021 Earnings Call. My name is Selena and I will be your moderator. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions] I'll now turn the call over to Josh Schmidt from EngageSmart. Josh?

Josh Schmidt

evening. Executive on Chief Officer; good Bob call Financial and Chief Bennett, and you With today's me are Officer. Thank Cassandra Hudson,

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Robert Bennett

everyone Welcome, Josh. and thank you you, us. Thank joining for

be commitment earnings I our by and customer and quarter XXXX success. simplifying on And contributions quarter remain We engagement mission and Delivering EngageSmart's fourth to year. customers, our call and the their client are outstanding our heels and attributed partners excited host to continued humbled a employees. can an to fiscal on our of strong our directly of

We've where now share a with digging XX,XXX Before really serve SMB of. segment, customers. of in to proud of of highlights that I'd we into performance, few we tremendous XX% you year-over-year seen customer our the the details like our growth are deeper over

strong product and driven is customer by our of end-to-end organic suite. growth word-of-mouth Our primarily the strength

one four separate vendor each group an efficiency of driving was the The same For of time, able day. improved our the customers enabled patient At example, additional continued dietitian see across to each solutions practice favor practice. simple dietician our we in to innovation are in eliminate solutions.

mobile simplifies we documentation case which features while example, For cost integrated codes added base. app diagnosing management introduced and payment driving and

focusing fit three of further market. these are plan We more traction we ever that on experiencing a verticals great X,XXX our We in serving over before enterprise across serve our are as we features unparalleled high-growth for invest in customers becomes solutions. today are customization segment, drive and to areas. in than the and several verticals And

a includes focus paid faster, and having We are seeing growth strong leading product and e-payments driven innovation, partnerships options by easier other help without value to on proposition. and This our organic customers get paper.

on checks. alternatives a largest InvoiceCloud, the still in the largely others space the payment contributor PayPal, including where market For running and Venmo segment, provide all for multiple our we in Enterprise billers, is revenue

honored listing solution. a benefiting billing by that Life, been In Extra has InvoiceCloud such Award Network payment are one-of-a-kind short best as we the Miracle excited to Hospitals. marathon are We with finance our our XX-hour category a the solution, progress DonorDrive recognized or in charities Children's Cloud support cloud of fantastic of gaming

EngageSmart. million through single raise in in in huge over helping part money are them be helped like excited Stories to $X a found We of social We the Extra these amounts donation features technology. raise weekend. our of get advanced Life us

lower our billion clients. $XX adoption help are appointments, self-service activities and We've because we Why? be in their are driving and to EngageSmart come Because a as way. recall, with that businesses, like wasted If on-boarding a engagement paying patients scheduling long EngageSmart market. expenses hard. shouldn't Today, bills, Solutions digital their new improve increasingly offerings client digital you a Customers we adoption adopting operating simplified and founded reduce drive communication time.

fourth financial in to full and EngageSmart year-over-year Enterprise record quarter increased segment. quarter headlines in Total another in segment quarter revenue Turning revenue for performance. SMB and growth strong by driven our the million, year. of of delivered XX% $XX.X to XX% the revenue XX% by our

from XX% In incredible annual year SMB more detail later. SMB year. chiropractic and high-level will But now markets, execution XX%. For vertical pathology, review and enterprise segment, financials grew the was we the progress growth and the an Enterprise increase occupational health, $XXX.X XXXX, segment wellness nutrition, year-over-year of in our full million, total XX the revenue SimplePractice among revenue on update annual and Cassandra first, our in segments. of mental our a let me therapy, serves give delivered therapy including speech-language prior others. you physical XX% in

markets in across shift grow a technology customer wane. management. and it's This SMB Patient space result and COVID experienced is a collections and growth. tasks tremendous health, documenting increased of high-growth the and increase pandemic in and to attracted believe SimplePractice the are for XXXX that SMB like investment for offers behavior. accelerated growth markets newer catalyzed was We roots these billing to markets our marketing continue we mental visits wellness and beyond. these claims integrated to drive are management; begins scheduling is solution the in segment deploying a to engines as and now intend growth are adoption cases, product pandemic appointments, telehealth, While in business because our our payments, simplifying we it by insurance an our secular in high-growth Practitioners become to has

Enterprise our Now turning segment. to

experience. brings business modern Enterprise a Our with capabilities vertical specific together engagement digital commerce

health InvoiceCloud, digital year excellent strengthened adoption We driven solutions. giving, nonprofit our solutions. and fourth XXXX care, have using of customer the across quarter win, and full the our the utilities, financial and momentum DonorDrive corporate more We by continued services, government, than all customers HealthPayXX and saw in go-live

Utilities on During core of example saw we partners strong quarter, the network partners InvoiceCloud's seeing fueled the and Utilities customers traction acquisitions a the of in driving including calls decrease such Harris great launch we're since The of Advantages Texas, city by in and is Group. alliance product an estimated One market. SilverBlaze our engagement new partnership, payment Harris City annual Group our with printing us, value solution the growing by benefit as for underscore partner partnership realized customer our related verticals. the billing is Harris with the the in with that already portal online Arlington, with that the Hundreds these to partnership our mutual bringing customer largest who paperless InvoiceCloud' expand continues payment of XX% been has of and has alliance leadership alone. and are from $XX,XXX fourth cost working the savings of Harris. to adoption. Arlington, our in enterprise working payments teams

our the go-to-market us be in Kevin this our to an Speaking solutions. who we're record Enterprise of product leadership leading President and comes that of brings as space. clear, steady PTC new will addition of particularly of for success business leadership, enterprise Kevin about from to excellent and track be this O'Brien, valuable excited will build and upon

Hudson. pay market overall. proven increasingly customers self-service aware with increase reduce online been to and over payments the our remains CFO, I'll that, to Cassandra that engagement loss becoming Cassandra? late the customer forward, providing for are and turn customer software driving ways multiple has vast or and bill organizations satisfaction digital payment to to Looking call and With

Cassandra Hudson

delivered of representing Bob. year-over-year. you, full driving $XX.X The last are for earnings our appreciate call. two well for We I Thank and us key revenue transactions exceeded and everyone for today QX total which increase our processed. customer joining revenue Total QX and call XX% an we EBITDA. the on guidance excellent QX results XXXX adjusted strong revenue count results provided earnings year was million, our metrics

As in of million as saw QX our to and acquired mainly total was XX% QX which the solutions grew customer SMB our to increased XX.X of transactions QX XXXX, XXXX XX.X growth new end segment. XX% XX,XXX processed was result within million in transactions customers a we compared our Similarly, XX,XXX by year-over-year in count total XXXX. of by customers

our also rate driven net for customers add revenue to utilization by continuing licenses solutions. strength in of our retention payment XXXX, which our for saw increased and was XXX% SMB continued We practitioners additional

In addition, customers by existing our rate revenue is the within growth fueled retention adoption payment net in for segment. enterprise digital

to continue $XX.X Our and exceptionally continued more $X.X continues segment million, representing quarter coming with grew perform grew usage-based new transactions $XX.X revenue growth. our add-on as driven practitioners. million by licenses of at million, for on in our year-over-year platform. of and XX% XX% adds additional customer growth Subscription fourth SMB in customers XX%, revenue Transaction revenue well to process

revenue delivered Enterprise strong $XX.X XX% growth. of million, reported Our representing also year-over-year segment with results

sale fees one-time to XX% HealthPayXX growth following, as Our Enterprise occurred the migration our COVID and To on-prem for derived XXXX. revenue compares, XXXX. interest grew quarterly outline see from revenue hardware legacy SaaS in QX solutions of segment customers in the Enterprise a XXXX, The associated is growth platform. of from with majority our of $XXX,XXX was impacted vast by that and further that in provide the I to which growth transaction in share well our topline want market the usage-based QX address color we in drivers the on as

of With in health XXXX customer quickly have capabilities rate practitioners respect both the a in from segments mostly of levels elevated and added the SMB, accelerated that we a COVID position saw were we our our five EngageSmart, XXXX and last over demand great to outset the practitioners For as in at quarters. stable to pandemic. of and business. new world of growth virtual the in across in immediate QX increase solutions been serve We topline QX had adds digital mental

higher through strong segment We In processed of customers and to existing out and addition, COVID, SMB more adoption. practices our they continue practitioners to secular payments from coming saw tailwinds benefit revenue technology believe their will we added as digitalization from in us.

drove base, need our throughout of XXXX. payment the adoption customers For digital across accelerating from growth customer Enterprise, payments in an the existing improvement rate contactless for InvoiceCloud

Now expect comparison. line top that we in from COVID normalized, growth XXXX consistent rates move more we on things as have

high to terms SMB, relatively continue we serve In drivers today markets tailwinds our In that the highly digital will of SimplePractice investments that tailwinds low demand into confident market, growth. for can large our business, high LTV wellness secular SimplePractice our reception to from CAC for be remain attractive. remain offering the untapped. and transformation We are competition, a strong growth to and within drive target benefit for dialed ratio

major a lining license also It our grow. for have means to trials. SimplePractice provide which we payment who a that funnel silver source adding of Our a and their larger has is a that installed word-of-mouth subscriptions customers referrals businesses pattern is as transaction COVID of larger feed of top base volumes base

we opportunity the it build Another new the suite product in further as of to address. our is innovation our nine SimplePractice practice suit areas growth now business continued out tailor and we

As Bob This needs. on should example, impact are illustrated with a serve to activity. our dietitian to position offerings vertical advance funnel new to of features further distinct innovate positively top in we

and solutions. Finally, help we we new out should rolling option practitioners including pricing attract entry-level that believe our packaging, more are an to

telehealth packages the with our offering needs to better incorporated the have We customers. align of tiered higher our into

our 'XX For as in growth digital live with well the will growth come by of customer of going went the be to to driver within billers also year, from expect that our will portion year to as to our go a continue XXXX. contribute we of Transaction adoption, meaningful billers, new as a continue increased enterprise, growth full lives XXXX. in impact payment existing live customers core our driven growth

margins. Now to moving on

marketing $X.X product channels segment new QX in broaden new both million to the reach absorbing improved public compared our to XXXX, $XX.X initial and from representing XXXX. the in following and to wellness to product XX development million, customers growth driven expenses margins by markets. $X.X G&A our operating for QX gross in costs due $X.X XX% costs for SMB to and or SMB for a to incurred investment target our decreased licensing as for million to Adjusted in continued our XX% existing of Sales million costs telehealth as million, customer investment to R&D increased brand backend within offering our XX.X% our by in increased in we in of as expenses our million acquisition driven engineering additional to SMB early enhancing our was solutions segments. investments driven increased $XX.X our segment, $X.X headcount leadership. million increased with adjusted $X.X XXXX, new Our fourth on public provider September. quarter, XXXX new maintain by in migration million within quarter company XX.X% the well EBITDA XXXX margin margin $X.X QX focused

a in as As as a profitability improvement our a growth, temporary in well revenue by our meaningful to we COVID. in SMB due easing experienced reminder, XXXX, strong spending driven levels

since have and our heavily investing in ramped we investment and While revenue spend marketing to sales product are and growth. drive development

market in highly Given place, we to the profitable. opportunities see remain the we continue

Moving as sheet. December $XXX.X XXXX, and to of balance XX, had in we equivalents. cash the cash million

of our the XXXX. cash offset of the our costs by for fourth that, to flow With related outlook quarter quarter, million first initial our the mainly public change During $X.X offering. cash free and was payment of I'll million, in associated $X.X year on of to move full with

at to $XX.X which midpoint our of implies year-over-year expect range. million we growth the million For in QX, XX% range of the $XX revenue

of expect an million EBITDA midpoint. X.X% $X.X adjusted the represents and which We margin adjusted at in range of X.X the EBITDA

expect full of $XXX be the year, XXX growth of million revenue the For and we in to revenue approximately XX%. or range

adjusted as and we and million $XX year, which full to represents to of leadership. invest growth expect for XX.X% For we be EBITDA in adjusted continue of the margin to range roughly the XX an drive maintain product EBITDA,

of As and in on down a in see segment events transactions following billing tax fundraising the our concentration models, adjust in mind. the to timing typically with your keep due within InvoiceCloud of We for large step revenue the QX a associated in in DonorDrive. basis QX sequential Enterprise you please

sales all within markets segment. to we expect will across within to capacity of a revenue SMB spend Enterprise and as marketing funnel, as add we the the of percentage serve We that meaningfully continue building and top invest sales SimplePractice increase continue drive wellness brand with

a maintain by percentage We as to investment revenue in products driven our will leadership. increase expect R&D spend innovation of

second decrease We software and driven to company year-over-year, operating G&A costs expect we XX% XXXX to the cost absorbing capitalized increase percentage in public depreciation of an revenue expect in approximately a as after fully of half by increase costs.

our based to realized to X% and success, in growth Bob XX% XX% XX% From continue Given for back record at of of we turn expenses marketing XX% scale. vary to XX% or focus on the long-term now margins XX% targeting for within revenue next to growth EBITDA our margins office overall markets or perspective, of target range, top growth, comprised XX% maintaining XX% we've that over in our rates comments. of years. have R&D which and product are call of given will efficiencies we opportunities line and to we above a track on overall current the leadership, the of XX% the economies higher several back the G&A closing to range I'll sales in

Robert Bennett

in strong QX. our we are including the in you, we delivered company, as a public Thank a summary, Cassandra. In results first excited finish record about year

as in be success net customer rates third-party and adoption high trial focused around count, factors: groups common rooted driven volume, people Companies have revenue simple by evidenced a organized simply excellent EngageSmart awards. customer retention three players. to solutions Our will our of A by conversion, first, proven are continue by playbook transaction customer surface. driven affinity,

We incredible have the are entire to talent organization. proud across

work to the as regularly They leadership by EngageSmart. adoption. Second adoption as measured by Customers don't system maintains product with want to changes. make and bar sets who that's product want leadership someone judged

large market runway. our and Third,

very in we best share captured We than verticals. and our are of have the less still and SaaS innings in early solutions X% have market

the future. We continue about to be excited

growing the We and world. this all on creating you a make us We delighting positive while customers, you joining on in much. value business shareholder call. appreciate impact very we are our Thank focused our

Operator

question Instructions] Bank. Shah comes [Operator The Please first from proceed. Bhavin with Deutsche

Bhavin Shah

for end and Thanks a XXXX. taking my strong Great. question congrats on for

price Just going SMB just versus performance would model. first on of color I of we additional flow guidance, by Cassandra the any Enterprise should SimplePractice in ARPU? Cassandra; how could recent as in fiscal 'XX appreciated. meaningful for we your should any particular, be about about imply kind your of And math, changes thoughts the through think how But think it mean, forward? terms

Cassandra Hudson

not growth segment of the for the XXXX stable So, higher QX guide segments. range. the at the from at year both total we're level terms implies guiding or revenue but of assumes our in guidance and for full that our XXXX, XX% growth continuing midpoint And both

contribution and XXXX. above fleet seeing in total our of growth Continued of transitioning what revenue kind the still, are half say strength consistent over the it's from we've just And out pricing side, growth we've then rolled revenue of in existing well pricing SMB segment rate this of days for and on first in the customers growth of terms back would from terms released the customers SimplePractice I new been half from our Enterprise then of year. the early with pricing average to

those lower us also and us, And didn't changes to think entry-level position the end price customer serve drive tier. For an acquisition on in to then telehealth the with that incorporated previously. better the a on good I have put we we've the into higher introduction offering offering

like customers, of revenue current So, for for expectation see expansion increased an I our of more ARPU impact about but us, XX% X% in overall, in days. that's existing terms of terms contribution to said, to we early come,

Bhavin Shah

That's I color. very helpful additional and appreciate the

follow-up quick for maybe a Bob. Just

adoption you there? about quarters most kind yourself to having coming where fruit starter help of verticals the do think the catalyze of Just see really the the next And you do SimplePractice, years? low-hanging will the as in Which it? think we having package much verticals non-additional how are over success

Robert Bennett

well. recently therapy we're in still the health, right rates are speech as course very pathology, strong there to Yes, professions of in language Capterra high retention the think us high but to now new as mental I similar our mid of underway mental well occupational so, a Those therapy, very listed massage seeing inroads that for seeing health. and with XX% scorer conversion strong we're

but forward will So, that us sorry physical -- therapy, chiropractor. I continuing in those acupuncture, dietitians. for are to think push high like be continue chargers to three we physical others nutrition,

we're on get all; our them where way. going we're So, intent, to

Bhavin Shah

Congrats, for the Thanks you. taking helpful. Perfect, again. question. Thank

Robert Bennett

You bet.

Operator

Bhavin. question Please John comes Thank Raymond from The proceed. James. you, Davis next with

John Davis

valuations on guys. afternoon, good million you or be the Bob, coming Hi, cash to on sheet, start, down. Maybe $XXX everywhere quickly, have balance seem the so across

HealthPayXX, ask is, what's capital have I So, the on the kind thoughts -- allocation. to or of part the accelerate bid-ask strategically of material to Just buy of do the top of could kind growth those assets seen there given then the assets questions kind be there would normalize? One just two two, on revenue? list, of there and DonorDrive and you helpful. fit want And you relatively thoughts spread

Robert Bennett

there's that the normalization compression strategy. yes, our now ask, and So corp sure EVP the in between I'm asks we're but as and such a of bids dev been Canzano with bid certainly or not market and yet Alan the

looking some be. things, yes, and Too know to several go we currency got we're we've of we could be say to there early active. different capital the impactful the but which emerging are to yet able -- HealthPayXX So, to around businesses like we're DonorDrive. plan active, and evaluating mapping our And be be or in where we

John Davis

to 'XX on the two Cassandra, to one want as regards the guide things and one -- the in I longer-term to guide. we then kind to And touch of just

year, of year kind So, mean, the that kind cadence of a guide. sequentially seasonality of look growth the the kind in of I guide the the to rest single-digit or it on perspective? high midpoint call in from throughout and to the fill at just 'XX, if XQ out you're I appears anything of

out kind XX% think So side? do picture, of of trying just how gross XX% bottom gross top year? Is on some kind the latter to any calls a not curious XX% you margin more this when pin And XX part that then we in down margins, EBITDA and there line in the down, about of slowing line the to margin, years? the the upside to basis something can points like bigger or then XXX EBITDA you happen think do we would see to of 'XX? if how And letting plus

Cassandra Hudson

the first is better perspective. So, the more on Enterprise from The guess, I sequential SMB Where side. a pretty smooth question. we a seasonality business have do seasonality is on

to us quarter pretty for of question, a point So within is QX the your big Enterprise.

concentration a period DonorDrive. concentration of of revenue, InvoiceCloud that in and that occurs with tax there's within a For billing an events also

So, smooth that down sequential from we today couple pretty and first do the a step see it is side, it We're long-term see of Otherwise, on as think perspective. on actually be QX stable will QX the And I total pretty seasonality. revenue out and level margin. of between a result here a before of years we a well on margins, then gross that expansion. optimized

higher expansion. And would delivery a I you'll target for think, longer where support drive future on points, to achieving levers think coming opportunities two XX% kind see price margin optimization now. that the upside see and I depends on the the in really out is customer right say, of the from of terms bit and then in further EBITDA, is we side. big little then Those I our the are us

drive line focused. obviously margin. the bit we to extent To think we're top We about how differently opportunities we'll quickly EBITDA a target to growth. that That's where that huge have get little changes, that

John Davis

anticipate get the we we that quickly spending the EBITDA if Or EBITDA of that were we would If upside see the should higher follow-up. kind Just expect to in see top upside guys line, you of holding this top were some line year? you kind to guide? of

Cassandra Hudson

that I areas call. on growth largely two in We'll mentioned reinvesting be year those for this the main

terms product road side invest marketing So, kind reinvesting to continuing on and our the SMB of then map. predominantly of in in

John Davis

Thanks. helpful. very Okay,

Cassandra Hudson

Thank you.

Operator

William Sterling [ph]. proceed. from Bob question The comes with Please you, Thank Napoli next Blair.

Robert Napoli

see. and Cassandra. Good you. job really afternoon, good Bob on Thank Nice the to quarter,

Cassandra Hudson

Bob. Thanks,

Robert Napoli

X% the percentage the What out as organically percentage five SMB is is mix X% what or the what if today to you segment, guess like what look can that verticals percentage what us I you remind next would, And years, expect -- maybe, what mental over do over you in me time? remind you you or look other would would to XX think -- to health? the So, opportunity?

Cassandra Hudson

today, So health. SimplePractice business mental SMB the with is predominantly

of and mental than the health additional XX% for XX% then north think less specialties. we So,

the So, additional over are to that's years. fast we're nascent next specialties where but expect to and continue faster there today growth pretty the drive growth several seeing

that see getting couldn't we'll I tell with you know share. any we're additional but up. I to will mix get strong today be precision specialties pick So, it shift that traction the certainly, up on today. to in do where would concentrated see that start we'll we verticals think more

massage pathology, language then physical So, and speech occupational therapy. also therapist, therapy

Robert Napoli

And paying free ramping you use -- that vary rates up color from in different on LTV the rates kind much trends give marketing you business. any conversion to it -- do give to the us of any of in to LTVs are the vertical? vary or Can And those trends customers? by the conversion in part some -- does CAC and

Cassandra Hudson

CAC basis, efficient health we're mental LTV in on So, highly an certainly, for SMB. to

see do we'll we're verticals look years. over for several the -- optimize next those to the CAC to we additional looking but So, higher

that efficient ratios ratio I think sense health do. really makes model, the but think XXx year LTV less different beyond holistically so months mental we're and down deliberately And investing take all that to in to kind a in still the for we're so highly of perfect bit is XX on verticals. CAC payback, expect more CAC in investing result brand, XXXX, is wellness as to higher these a For of a speaking heavily we're LTV highly broadening -- than to another little than doing it I our think to still a growth thing

perspective. kind main from are areas of a two marketing the of focus those So,

Robert Napoli

And is Monarch. business? the of strategy The -- Monarch? is update to monetization Monarch the of part have behind chance lastly, Does that become a then any material a just on what

Robert Bennett

to stages. specialties mental growth, plans clinicians. It's our in going to that enterprise now we some more really right of long-term we're going ultimately great piece for It's health to of traction. but for becoming a all still new revenue the that from critical really very to still early and So, create -- appointments, for organic evident be in -- trials proving us on we Bob of more in material XXXX, puzzle we No play good across it's us to pilots a be are have us. out but do it drive effective interesting are solid for drive

Robert Napoli

Great, it. Cassandra. thank you. Thanks, I Bob. appreciate Thanks,

Cassandra Hudson

Thank you.

Operator

Thank from Scott Needham Berg Please you, question The proceed. Bob. next Company. & comes with

Scott Berg

I a my and on thanks congrats taking quarter Hi, for questions. have two.

or price with to forward? attach more start Let's maybe so customers the point acquisition kind maybe some an didn't, the of the pricing take get with price early as to low-end the about life points pricing. as lower cadence far on their the higher capture seen think opportunity your I pricing kind what just to upsell be likely how new or customers forward? From we in apt you've SimplePractice business. see the saw to change but customers, around the maybe from really should going Do goes company some buy of previously or a that on any ways of the were may platform that didn't then you

Cassandra Hudson

for question. thanks the Scott,

starter So SimplePractice. Motivation on days certainly, cycle. having the -- to really who packet sorry, there practitioners customers was pricing address life who or the earlier change around their in still are early are for

until also And value fashion needs kind offerings of kind that we're market the not of So, in getting the up of the to that now a our capturing realigning then have today. add-on segment really of our really just customers. of been sold

don't think the of about and we're not be telehealth customers. programmatic will in offerings. I to be going rollout our line higher-priced So, -- into It we've to woven with features see you'll really pricing. features us

like that you'll anything year expect not every that. or So, something us from

Scott Berg

there. at up down think we Are How services And my revenues whether Thank or course up enterprise further price but were XX%, XX% follow-up then It the if volume general, I you. maybe on our business. about looks transaction up in they -- stable math some of correct roughly expect the was that's should transactions your months? year-over-year should we is is like -- changes, or payment point? XX pretty there? next pricing the Or this around guess, over

Cassandra Hudson

stable. has of relates in enterprise as changes, the the way least segment in XXXX. to very wouldn't Pricing it anything I expect at been

Scott Berg

That's all we have. Great. Thank you.

Cassandra Hudson

you. Thank

Operator

next The Thank you, from Scott. Ashwin Citigroup. Please Shirvaikar with question proceed. comes

Ashwin Shirvaikar

Hi, detail. and appreciate and Good the all Cassandra. Bob. Hey, results outlook

Cassandra Hudson

Thank you.

Ashwin Shirvaikar

split provide come some form group? And you're have situation So, there. of I Pro let the that known is stop to Any seeing? case And provide I that be into that idea have pricing, and now and granularity the is then is When first about question is go in them you you of practitioners guess I solo between I Is if used today, metrics the you it sort what as of or my today me still a of most could guess us is Plus. right? a helps baseline, can we understanding the talk revenue guess. what could versus baseline the

Cassandra Hudson

pricing It's rollout. early the in

we've will today. of utilization actual be. base of our a seen to product mix offerings all tough ultimately existing the say tell What strong across between us sensing customer will our I for you higher-priced bit is So, what the really

So, you're overwhelming were talking we before XX,XXX priced our using majority rolled out these the them customers, offering new of offerings. higher

much the are right we more and picking into clinicians the upgrade otherwise based ultimately, offerings be starter hadn't away option or to don't then heavily that that features that seeing one fully they'll the two that. on of need on in those aren't using been is will planning necessarily their the featured we'll up but expectation pack, in skew on and earlier each who journey packages our that So, higher-priced

trends solo pretty stable of terms there. versus group, In again,

customer We past have the tick X.X clinicians so. that seen up on average per we've years and over X or

So, trends groups has overall to pretty which stable seen we've great from been strong and uptake see.

Ashwin Shirvaikar

particularly could enterprise InvoiceCloud? accounts there's large comment also moving couple are What to sort I expect of And guess should for you we of the from considering been the changes. a And management that of solutions there pipeline just on the side. now that?

Robert Bennett

in. with got product At led revenue the that strategies, He's million he background Oracle. coming a and PTC line PTC, over excited managed super both in go-to-market had. are in product great We O'Brien go-to-market, Kevin he $XXX with and about alliance in

excited that well announced are sized actually in insurance I say as in had Enterprise some the super doing XXXX. you Guidewire that -- that with segment may And the So, President really new we decent think We alliance we Solutions. with new I would accounts. our we a that about of remember

Guidewire largest that already with already the ever had -- services with Guidewire the we've have -- as -- We a closed partner. we've financial deal

off That the So, to races. now gate is open. we're

chain So, pretty excited up and our about we're there. think migration I enterprise really the prospects we've got

Ashwin Shirvaikar

Awesome. Great you. Thank to hear.

Cassandra Hudson

you. Thank

Operator

Truist. proceed. Thank Ashwin. Terry with The from you, Tillman comes Please question next

Terry Tillman

going echo questions. and myself Hi, I the Yes. questions, Cassandra. X that's just it's I'm Actually, in, reined okay. so Bob to keep like I'm X.X hope to I'll ask congratulations. almost maybe a X going one part,

I enterprise I'm ask think first, on going side. the to

of as or opposed angles how I is kind a citizen in terms kind paperless add natural campaigns. question. on about going service payments just different see kind or of I'm is sales lift outbound much I'm of that same-store just a like a what of like follow-up. same-store use more campaigns? to you base How And talked think your to maybe folks creating it's getting what another of or to somebody And payment you do and expansion had customer starting outbound from curious, those et kind billing I online growth? cetera? all sales to then curious that's of

Robert Bennett

at The or campaigns outbound really right, payables, receivables. delinquent are targeted

they forgotten is your So, our you may a through are late but campaigns or Voice your IVR, to make payment makes click X is payment. system that call have a phone bounds, outbound directed and and Response to click we your Interactive bill use -- late, -- X typically hear

it us is not of out But think incremental, lift second It's I year. early because stages say if it of sort the hugely last Terry. I don't helps. material, -- we is that meaningful. it's rolled So, I would the know for in half

Terry Tillman

question. in thing just probably One a I LTV to about conscious know there's CAC curious It And was though, bring from earlier kind spending branding. incremental helps. XXXX, some maybe talking down follow-up I'm definitely about as decision a Cassandra of the to kind how go-to-market kind is of terms of in drives and 'XX? customer thinking testing any funnel of of you're that you have and there amazing this in paid that's customers. water growth mouth of proven other about learning the But top conversions activities

Cassandra Hudson

I do found large, programs think We We'll by marketing for of time channels. think, and remain very SMB continue us fair motion today. new focused But you'll very us certainly the spent testing I efficient still see on and of some side. a digital go-to-market to that bit targeted on in efforts. marketing we've QX, a

additional that, or little that down new a the we're deliberately. our So, bit nothing brand But investing specialty markets the or model we beyond on less really terribly from today. and more different going in after doubling more have and

Operator

next Bank The Terry. proceed. of question you, Jason Thank comes America. Kupferberg Please with from

Jason Kupferberg

with here Thanks, Great. NRR, I XXXX. in really to wanted strong guys. start just

XXXX? that said you zone? I How of Do trending triple think digit in XXX%. we this can you stay about should in you think kind think

Cassandra Hudson

play change, there. see we'll so think of side we'll on keep a into pretty and ARPU that on of positive side, impact lot elevated. a will I continued a opportunity it still things we're enterprise. stable packaging pricing expand then the the growth stable expecting bit to that with adoption to so trends We ARPU, naturally, and on for Also, that little SMB have pretty certainly the NRR see

saw in what with we stable pretty So, XXXX.

Jason Kupferberg

XXXX expecting the much full year-over-year in just a XXXX at margins, are full of of XXXX be least and of like assuming a function some absorbing to the at a public a at looking just of company And just kind those from year midpoint it costs? having I but you going some headwind of on how decline of year I'm having costs? versus there's is know I'm

Cassandra Hudson

That's exactly right.

started company past we public year. QX largely of incurring this So, in costs

million full that, you're an So, to roughly impact incremental million at P&L. year with looking $X of hitting the $X the

Jason Kupferberg

million year-over-year incremental in 'XX? to $Xmillion $X

Cassandra Hudson

Correct.

Jason Kupferberg

you, guys. Okay, Thank great.

Cassandra Hudson

you. Thank

Robert Bennett

Thank you.

Operator

KeyBanc. from question with The comes Jason. Josh next you, Beck Thank Please proceed.

Madison Schrage

Hey guys, question. this is Maddie on for Josh. Thanks my for taking

future? up color around that the question sort first is question second my that to opening and for your across any in you is back The payback seeing the you're you And I where of trends clinics in-person, effect that how then with telehealth businesses? going see that seeing you're have

Robert Bennett

-- or we are I'm deviation going seeing so clinicians not telehealth material to the really mix taking any change in new say on the forth. of that the product and and

include other been of as little well. sort of bit we top lot have bundle bundled We a telehealth our and things which has in a

But country sure telehealth clients telehealth a we it that -- we all clinicians taking they're on just based they're they're across their the that now think health normal, new frankly, for completely specialty. It's can't for all So, for is only. forward be going mental sure. serving --

the we're So, solid pretty future. that I think for telehealth on

Cassandra Hudson

second part question think periods. was And payback I then on your the of

increase business. slightly. again marketing So, to sales line SMB investment on of terms in we and in in dip level of we of the paybacks to efficiency, certainly the drive expecting QX, as the XXXX, particular in slightly we're so them dip did And saw growth, top invest side

investment. we're putting our So, where that's

far; XX so less using months today. guide in see space payback still that's than You our periods SMB of we're as the kind what by

Madison Schrage

Thank Awesome. you, guys.

Cassandra Hudson

you. Thank

Operator

you, Thank Maddie.

Please Auty. Sterling from proceed. follow-up a have We

Sterling Auty

question for for a Actually, Thanks, guys. question. me my in squeezing it's first not follow-up. Thanks Yes.

about in ramping the quarter for enterprise know, growth. like talked 'XX? 'XX and the saw cycles terms Just side, on what customers looks business enterprise the you Can new talk of fourth in wanted a you what to sales about pipeline in part the you big being of

Cassandra Hudson

X for stable from between an generally. of we I don't to Bob, there. enterprise, you'd X implementation cycle anything kind months, perspective X months So, the know, cycle And a somewhere X they then trends vary have pretty in and add? sales

Robert Bennett

really and half, good a that bookings frankly. go-lives. quarter for think I No, we second good had We had a

no of steady cadence. kind that think real I surprises, a So,

Sterling Auty

Are further customers do one side. are then into usage? to the of helping the adoption on there anything your seeing was other the seeing that during e-mail base imagine just driver the kind any I But promote a would couldn't adoption. follow-up that get obviously, you that huge pandemic, further things pandemic? you're And drive enterprise and or are communication to that maybe they programs adoption

Robert Bennett

help to our for think to adoption. opportunities I digital guidance do a lot of customers understand that online them we adoption, provide increasing payment

the -- autopay is our world on you billings. XXX% perfect As InvoiceCloud payment, side, online know, and paperless preferably our through billers XXX%

to -- help higher with provide tips we and adoption. a marketing lot that them drives So, drive them run get programs of actually there work that absolutely

Sterling Auty

Got it. you. Thank

Cassandra Hudson

Thanks, Sterling.

Operator

Thank you, Sterling.

Please follow-up We from proceed. have another Bob Napoli.

Robert Napoli

Thank you for the follow-up.

well. Just on enterprise as

first had you dipping have And and And large, insurance do you finance how toe insurance the and enterprise just is finance segment the there? pipeline in quarter, consumer and Guidewire? a all, enterprise? last explained Bob, their How customer is into major opportunity? a is consumer signed think, in of big you I

Robert Bennett

to in that insurance say much the of product part very live. a -- consumer got in on them it's which but we're and in finance -- have So, take strong order, have delivering certainly, would more that in It's finance, right now. of a consumer partners have happening market customers I pipeline in in we so have our stronger we going fit we in gate a activity pipeline But We're pipeline because pipeline that there finance. much we insurance alliances much on have focused by reverse consumer a also strong insurance, Bob. driven insurance. alliance handful And strong our

largest terms we of of the size have. that vertical is market, consumer In the finance the probably

And days so early we're there.

to will move We're already We it will get in it bigger it. we but we in as get forward.

opportunity an if around also any that's So, as inorganic are look to opportunities there and us for see well.

Robert Napoli

any or or towards targeted And in finance, repayments mortgage is is specific sector? loan any repayments consumer there auto -- it like

Robert Bennett

loan. auto Primarily

forth. some primarily There's in and But finance loans auto. lending. finance side, with auto it's been mortgage and consumer general on some -- think we're so the I also discussions

Robert Napoli

Appreciate Great, it. thank you.

Operator

Thank no additional are you, time. Mr. There questions registered Napoli. at this

So, I'll Bob closing pass to for the remarks. conference

Robert Bennett

product been It's as year. on focused exceptional has Symposium drove our market you numbers as Bank opportunity XX% you address for you America with on leaders great the delivered first forward continues today. compelling joining quarter questions. huge in revenue call revenue the a again. our to the Payment speaking strong to outstanding QX EngageSmart as later annual are markets Standouts all in a your the year this customer Overall, across We a Thank on voices of we with It thank growth. company And quite look performance. record of XX business your be and Electronic public Momentum Thank for another our all at you. customer retention. us. Thank and growth hear again March we're to spring. positioning you. results

Operator

participation. the QX EngageSmart XXXX concludes That call. Thank you your for earnings

disconnect now lines. may your You

Engagesmart (ESMT) 16 Feb 222021 Q4 Earnings call transcript