ZIXI - Earnings call transcript Q1 2021

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Operator

Good afternoon. Welcome to Zix first quarter 2021 earnings conference call. My name is Howard and I will be your operator today.

Joining us today for today's presentation are the company's President and CEO, David Wagner, CFO, David Rockvam and Chief Marketing Officer, Geoff Bibby.

Following their remarks, we will open the call for your questions. company's remind available this link for Relations of to recorded will in like section made and replay the would everyone call that be Investor I website. via a

turn Now I Sir, proceed. call to Geoff please the would Bibby. over to like

Geoff Bibby

you and you our afternoon for call. everyone earnings quarter XXXX conference Good operator. joining Thank thank first

in materially could in release and company cause that results consider our those such call. examples that those from statements materially with SEC those obligation results in also today's filings performance Form close is the the the of to for copy Please release XX-K Dave press recent this Rockvam. of the CFO, call risks. undertakes could and uncertainties statements. statements forward-looking statements. forward-looking of and Wagner statements to provide website to no the our you most of course that actual press to ended quarter note will we today, On cause to first of at a actual the Risk differ It's risk caution to in the events we today, make market forward-looking March Dave Factors and company. These announcing differ Investor note contained update conference www.zix.com. a Relations this issued of have important subject section call, regarding our in available are from the the We our the financial results that factors risks CEO, future The XXXX, we section After during XX, future our and the XX-Q which forward-looking

such for measures the COVID-XX December behavior, work and These for operate. situation in on as and The of impact changes monitoring in and operations both fully impact are unprecedented particularly also in to management suppliers to spending more business year company ways, on prevent employee's the near in its in over our which the estimate customer term. our affecting its ability our been travel. products, patterns, make has to on ended of disruptions spread XXXX, our it third-party of described As actively world the the and business we Form and XX, our company COVID-XX limitations report causing and business, demand partners in various XX-K the more challenging annual volatility the and their factors future our including the payment performance for the

analyzing both superior are results. isolation measures. when During substitute our and press call, included to measures we which in a site. the for be measures be today's financial all Investor financial to found the to present GAAP Non-GAAP reconciliation can certain non-GAAP measures in We company's encourage of GAAP is non-GAAP performance. section GAAP consider in to will the A not or Relations release, intended from, our considered you of

to with to opening call his Now I Dave remarks. over Wagner the would that, turn like Dave? for

Dave Wagner

generated from an the operations cash first last In and than dollars increase and solid we to adjusted in with double results, which in and of our XX% commitment today. revenue quarter, reflecting more the along Geoff. growth in the year. We XX% is QX QX, in continuing growth. everyone for $XX.X ARR profitable EBITDA flow quarter, thank afternoon of we consistent million joining Thanks amount delivered Good delivered you in us overall drive

XX%. Our cloud ARR was growth

by ARR alike. of of is XX% Our the customers partners secure our These results total are accelerating now and financial cloud. our in adoption platform reflect the migrations cloud increasing cloud and

was almost XX% and required year-over-year. in up nearly is backup is since CloudAlly business we up cloud Our XX% November

and momentum last already November, cloud of new continuing growth key XX this cross-sold since partners backup great for have prospects We our a technology. indicator

with end provides security we expansion are on mid-March time resilience. the threats quarter-over-quarter robust XX% MSP email devices, in partners German and and facing and into focus cloud and in international security, journey than continue as greater capabilities our ARR international more supporting market right highlights in any the on cyber compliance the an in more compliance their we seeing plans channels, down work QX more up are businesses history. Our bit QX, launching ahead need. communicating on but deploying the remote since opportunity a SMB slowed to the were their We acceleration customers little and this track. are cloud Secure increased month. Companies are other

Now I will the our Rockvam, turn financial quarter. Dave? on details provide to it for Dave over to our CFO, results

Dave Rockvam

afternoon and everyone. Thank you good Dave

quarter first increased of consistent of and XXXX profitable The flow period generation. another cash dollars year-over-year strong marked adjusted EBITDA growth,

Looking at in XX% At up $XXX.X million, of the from year. end ARR numbers totaled QX, the more detail. of our last QX

XX% ARR of ARR last million. record $XXX.X of cloud-based our XX% QX or total comprises Our grew a year and over

added totaled customers quarter New X,XXX. in roughly the

and back November Index with and in the in line COVID index is December, in The February. with XXX.X the Small come base did the the the some in represents as the by first induced sales dropped beginning NFIB we quarters in to quarter. new to dollar in Both renewals net which customers was XX.X retention This which January the than last from XX two installed divided in January plus into the our slight from were January. Business right lower February up For that dollar retention new business impact line SMB of slowdown March, the felt were renewals slightly quarter, and dip XX% slowdown performance. Optimism our at net our available

range to the but retention and in rate our and rates. solid $XX same quarter a from continue past, for In the exceeded we million to for digit We customers. be year. providing yet a last million it this pleased the our revenue we both will add of both April in Zix grow retention and of $XX.X million Dave have XX% we more new to strong more have Cloud In us of well across new as for stickier strategy majority dollar Zix makes first to average to Secure and quarter, ability our to March company. all see maintain easy Zix. color currently valuable the we double believe ultimately Revenue platform encouraged context quarter. by X.XX our Secure is a to user-friendly the $XX We X.X customers The growth that making averaged for the increased net quarter pillars, our April per new solutions, the see the bodes at which partners provide saw ARR guidance the mailbox, first the above both platform. Cloud first and to rebound in were onboard more in customers of number customers QX, those the but Zix in services

exchange QX. impacted cloud platform and rotation the for anticipated was productivity $XX.X profit total customers or XX.X% gross on of of in was due adjusted revenue dollar This We products the the the during our XX.X% XXX strength their Our in continued basis in margin of to quarter our email quarter. million million QX of the hosted from to total moving revenue. improvement accelerated the or last $XX.X dollars Gross period Microsoft a an year. to were

our plan. exceeded programs However, our

customers cloud to continue to and give customers us valuable the gross more provide The into growth cloud assist confidence direct well X,XXX our opportunities growth we current Zix's they in continues as of journey we higher future. to MSP of meaningful to margin a to capture grow us move us partners products and QX. make base dollars ability built-in can macro than more to on even XX,XXX the them. and Moreover, security increased to margin and opportunity expect Our end acceleration attach focus business our the do organic partner email partners

X.X% cash quarter first This in primarily year-over-year expenses of of total revenue. R&D would adjusted expense increases past million that anticipate the Cloud. continue the R&D in on certain development We $X.X to to we current of are or or increase year. quarter. Our amortization increase for don't this to last for quarter of of Secure $X.X projects the total during due projects dollar in expense The X.X% completed million, were deployed amortization to the revenue compares being XXXX QX was year. the be expect to but We

and net While they adjusted of EBITDA. income our impact EPS, our expenses are these out

active QX Our of MSP lower the selling million new last wallet are marketing as and quarter revenue in lower percentage of The from XX.X% model $XX.X having and of to a reflects and acquisition benefits high compared million or adjusted expenses winning sales were of from our customer share gains revenue our year. of for cost marketing customers of revenue total our or the we expenses success and selling XX.X% velocity in partners. the total $XX.X total

and driven diluted or of revenue of quarter a were expenses in shareholders of diluted For common $X.X On of in fully the $X.X basis, change year. the QX or net a a by first $X.X for stock-based $X.XX loss from over a revenue, reported attributable total of quarter of or fully The X.X% of a recorded compares a loss of XXXX, GAAP net The adjusted quarter per the shareholders to higher we general or administrative $X.XX QX loss primarily prior X.X% a was loss million in to $X.XX loss million share. attributable million loss was last per total year. $X.X the million which loss down share of of of to our compensation year. common last

million deemed diluted which QX adjusted $X.X in our compares we finally, year. last totaled per before fully This EBITDA year. our non-GAAP per quarter in million, dividends of million XXXX in guidance. an with reported increase line fully first reported tax net $X.XX Our from or adjusted we And for $XX.X last share, diluted that QX and deferred or QX $X.X million share income $X.XX to excluding $XX.X was of was

which and of of from for CapEx our of last intangibles primarily XX% XXXX working management. operations flow operations quarter capitalized quarter million, guidance XXXX up XXXX. for line capital development. driven by Billings As $XX.X and the The total $XX.X of from XXX% of increase or was use increase adjusted with were first continued focus an in with QX $XX.X the careful of million, purchases of the million was totaled XX% software continued last XXXX normal for million Cash primarily from million, first QX year. to which other consisted business in QX a operations XX%, first year. and compares internal the for on EBITDA cash business capital of $X and XXXX flow in revenue, QX over quarter the percentage was $X.X in

cash. in million Turning our $XX.X to sheet. quarter We ended the balance with

our have vesting as addition our also cash also equity for revolving credit $X.X under program management of worth on million borrowing In part strong shares. position, The million to company's our approximately we facility. of available company $XX stock repurchased the

In structure quarter. balance terms debt of our we end the of capital $XXX.X had total the million sheet debt at on of our metrics, and

currently Shifting between to $XX.X QX, is to expectations. EBITDA adjusted of us million XX-month of leverage of approximately adjusted trailing the QX, million. range second which $XX the financial and quarter. of current million $XX.X of well guidance gears leverage EBITDA ratio below market expect the on times at conditions the Our putting we nearly a based X.XX X.X for our for and end XXXX, quarter reflects ratio In permitted maximum revenue

XXXX to Our revenue last for a compared year. XX% forecast of quarter of second growth the QX implies rate

GAAP are attributable XXXX. adjusted a common be expense non-GAAP loss excluding of the quarter earnings loss to $X.XX the of fully forecasting second deemed per a loss deferred fully share benefit $X.XX share tax dividends in to to $X.XX of to shareholders and diluted diluted for of common before shareholders be and per attributable We range and

an our our to increase be and of XXXX. QX XXXX revenue guidance basic and be between forecasted We based per approximately we million on increasing between share for revenue XX% are count million, The figures an Based EBITDA of XX million are compared to current shares for representing share currently $XXX XX% for XX% $XXX.X forecasting visibility, XXXX. approximate adjusted to on guidance are XXXX. QX of

and common On the $X.XX to per common non-GAAP of We between on Adjusted an per share also and XXXX. million stockholders a XX% share $XX a be of revenue based EBITDA loss year. The are or increase of XXXX. attributable to XX% earnings and of $X.XX. total to a XX.X range loss expect in year fiscal million diluted approximate fully to is figures of share range approximately a is for $X.XX attributable compared forecasted to count of GAAP loss basis, a expected range of year-over-year for basic XXXX per adjusted approximately to $X.XX between share shareholders for

million travel, includes As strong were we guidance marketing expenses in increase to continued a of fiscal XXXX. Based compensation flow XXXX reminder, generate XXXX $X which current and outlook, XXXX in expect our about an COVID-XX. cash of reduced in free due related to on to

We business, to obligations adjusted $XX our this credit for million and my profile bank interest-bearing are facility other financial interest we summary. strategy, forecasting meet generation summary, $X.X In guidance and achieve flow favorable positions profitability items EBITDA expense completes well strong we our subscription cash debt our XXX% execute million. our XXXX. manageable approximately of believe us on in as and This

May XX-Q, refer Investor to view plan investor by earnings presentation. our which to recent Dave? our For Also of most visit website as a as more detailed we please financial results, file well today's XX. to our Relations release analysis our

Dave Wagner

Dave. Thanks

underscore Our is growing sizes facilitate transformation technology drive the in and communications. empowering of financial playing results Zix cloud digital role all with protect to businesses adoption,

noted As XXXX call, our for year a on transformation will last Zix. be we

built is three the growth plan same on transformation pillars. Our

each XX% slightly customer approximately customer we with new partners, a take retention. about XX% in partner New our In will add-ons I QX, quarter. of partner added MSP customer up few were minutes and provide customers, was to first partner acquisition, acquisition. by which and Beginning now of new these added and X,XXX last from which areas. and updates

we single a who consolidated MSP once and new partner into nearly wins more included They We MSP consolidating X,XXX opportunity as a moved seats benefits grow. support. already a to on partner this backup provider advanced backup cloud had in our our have sell a five recognized an U.K.-based solution partner with to value continues provider. the U.K.-based included wins the auditing cloud top relationship partner who one and and being this to of backup Three new cloud us Office the security new the focus to Zix MSP were XXX, two the quarter. U.K. three with quarter in being backup cloud and major of in Office XXX All for win of this a latter trusted key top wins with our another of year. superior in and partner five threat Germany, to international a have Some with

with is our growing investment portfolio value getting traction MSP needs. from on our tremendous encouraging and thesis. compliance by While our and our started focused we vendor Germany, of Broadly are consolidation validates partners is just security most are expansion Zix's speaking, into critical early broad products partners a realizing their trend and

five in On four and healthcare finance. the in one business, our and the wins of reseller side top the quarter included direct in value-added

for partners. driver customers of increase XX% in quarter. which quarter, partners pillar, key XX% Turning existing customers to the accounted existing sales first growth to to A to compares our MRR MSPs second to last through of and source growth is customers. existing sales which through In sales is quarter, the the

saw customers in news As we in recover customers customers a the such April owned existing month since in decline to that sales from what for in the existing sales and were we The have QX the experienced Dave and began mid-March orders we AppRiver. existing to is to sales good QX to strongest QX. mentioned,

that result that late is the in bodes March, it QX surge in of the we well saw COVID outlook. slowdown our modest this and recovery of interpretation Our was for April a winter

three and The terms add-on banking. meaningful direct was top add-ons VAR were two were our an six-figure sales of and healthcare a encryption-only largest our in customer. for five team, In through in

licensed financial cloud institution including who a meaningful products, Zix add-on secured also backup. with a We

increasing growth company year. retention at QX quarter historical XX% consistent to last over third our and retention. last remained was down Moving both XXX% slightly Total to dollar net pillar, Gross in company with level the from retention XX%, trends. QX in

QX two sales quarter or Office and and Our discussed Microsoft Hosted to due HEX. from to churn net due in retention the accelerated to reasons. impacted to lower customers as in rotation was for The existing XXX also HEX dollar Exchange earlier

more normal. migrations First, it appears XXXX for that were early than planned cloud email

So earlier the the probably this migration from be second, a well. as XXX induced a program we migrations home to capabilities in to favor and acceleration. rotation seasonal to work Office instituted leaning clear, our we year it. proactively market our saw And To accelerated HEX the remains cloud we point into are

back business in and strong in driven by Our dollar we retention rates overall predominantly the April acquired cloud our XXX%, remain the AppRiver XXXX. months was retention strongest very for over since net

of Our for all these year increased reflects factors. topline guidance the

was CloudAlly joining November. exceedingly very performed has since timed acquisition last of well Zix Our and well

CloudAlly's fact, backup secure the an win. largest a ARR leading in they critical six-figure last each is was three which modern to address their data record has recently ARR Cloud and In playing growing levels of role that history, need. a we a secured have and hit solution company months deal increasingly workplace within

of strong and summary, Zix partners. cloud We attach are we adoption by believe our backup seeing rates well positioned. is In

has are including concludes momentum as by profitably more for XXXX. growing of goals to continue questions. delivering company million $XX ready Operator? on setting remarks. to the EBITDA for cloud realize million ARR our our we to call $XXX XXXX That focus Our to up prepared the in on while open success us for also us adjusted we Operator, track

Operator

[Operator Instructions].

comment Nehal the Northland Our comes from Chokshi of first line or question from Capital.

Your is open. line

Nehal Chokshi

the million that's the upside guidance increase on quarter fantastic. in congrats $X at the And midpoint, you. and Thank

you Just the offering drivers is lot driver the to one said here? core versus be different there. AppRiver a which simplistically, But of there clear, know bigger I was

Dave Wagner

kind primarily Nehal, consistent at across of really that's level, we talked how company parts it, whole business. the all trends that at real about the Really Those February we talking were are You and looked in all business, later draw parts across quarter in especially and of January, here just bit little April period. momentum, of SMB in of a the the down good

Nehal Chokshi

Okay. Go ahead.

Dave Wagner

we cloud XXXX, thing sense incented call of makes just for lot us. change. in hosted lot The was to to was that exchange, a and the which And that back, that out other were we little it change year-end customers dip happened that further that when you rotation a make of think waiting

So business that a kind other the of one of business. thing the different that rest was trend the than just was

So those we highlighted, ones are Nehal. the

Nehal Chokshi

I see.

Is going in March? the behind more what do acceleration there there? on it you fundamental the But Okay. something of is Or think easier month comps? is

Dave Wagner

stats. use why NFIB those That's we

feel thing. So was know a players just really really SMB just it as economy. we are it superstrong correlated market. other like thought April, SMB We don't the a really we that. of to certainly market I you saw month segment in at. was what was But know, tightly the

Nehal Chokshi

Got you.

cyber Okay. And great about of that? Do ransomware across you the are security that the success with the hear having with think is driving there great news universe that you you that? to that's has items else think something CloudAlly. anything Or do driving accelerating that's

Dave Wagner

No.

I cloud the is that's you The the think of talked. we recognizing are what and data I value exactly ransomware right. workload

be they of out in and to period lot recognizing would with to this come that as new did rotation, which it cloud really were COVID We they just workplace our close we well through close a was from lot data adoption. where our why of part work workloads. drive hybrid And customers is partners going next that's think First home a that's also cloud more timed.

So still really backing up. we think it's those for early

one the cloud we is, success, of force backing Office XXX. workload biggest up. data continued number that course, great are We behind really second right But the are sales is seeing

Nehal Chokshi

I see.

calendar targeting I a it's gets see on but you know ARR are that, is question guiding, to that see you final a five-year that great million CAGR. my And If that XXXX. XX% if $XXX in basis, I by don't guiding, are Okay.

in are slight you a have Is end to acceleration this most it expecting assume fair the continued year? did you to this rate recent by So quarter. acceleration this that subscription

Dave Wagner

Yes.

seeing. the for inorganic we million, the we we room well. pleased $XXX are So acceleration little that bit obviously, talked work When very about are were a with leaving as we

that where is at get million us of to would $XXX acquired So the ARR are million. we XX% today, $XX there

we looking how can further are and Building momentum, continuing to for rate it. look technology accelerated it. So that accelerate at that's exactly tuck-in that through

Nehal Chokshi

Okay. Great. Thank you.

Dave Wagner

Nehal. you Thank

Operator

Thank you.

from of or Our comes the next line comment Mattiacci from Nick Craig-Hallum. question

open. Your is line

Nick Mattiacci

guys. Mattiacci, Bennett. This for Hi our Chad is for taking question. Thanks Nick on

migrate then should margin? you Are an to about on started of add the overall, guys products? number think Secure Cloud? How mailbox legacy services we as you do And use have you per continue seeing on So tick gross to on opportunity and customers retention net additional to to having just see impact customers this up?

Dave Wagner

Dave will attach take the part back margin first in on and let the I come rates and of the the question gross Okay. dollars.

secure acceleration seeing of to we an So cloud. the are migrations

work Secure As we you the email best will up finished all late advanced of, get that we with know, Cloud. to what Nick, encryption XXXX features of into

to a for and to So that's how ago, wanting the that's cloud next That just the all XX the these was you migration XX% it move point touch we customers. the of time the customers give with in coupled months. to rotation, sense year cloud about of a our year kind A ago accelerated.

of touched moving XX% to or cloud or have two. year-to-date quarter we either next within We the the customers the now

well really happening to well hosted now is the success are with cross-sell. that big cohort timed across customers as migration we X,XXX that's great capability moving ready, order SMB timed that other well. going that And to in So then well have over enhance

cross-sell. that for Nick. really Thanks program in, are is Dave So will checking the of well. moving kind And hit let I

Dave Rockvam

Yes.

We it's well. attach, more. the want going On always

We tenths a basis are points, quarter. hundred couple growing every at looking couple points that hundred of

X.XX to end we that to towards X.X get So would total. in of like were the close We the year. see

for Getting So a the focus this you additional the opportunity the far of month. we look team, now brings they Germany at That have on towards we sell, are look add-on. U.K. when that products to cross-sell. the with working especially to CloudAlly team continuing Launching as lot as that cross-sell. at in

cross-sell get bring going as on well. the have about able excited that to to been the in and really there are we We Germany teams

next We of that. gross got dollars. margin in gross then couple And look for the increasing the dollars margin quarters. we So

rotation a early in As quarter, those because Dave we we the a said, to quarter, retained margin XXX lot the HEX that Office gross great was had customers. significant this It but in which flattened we for that of in side January, dollar March we February April, are pull with second to in bit on up quarter. the seeing back looking little what and the are

So part expect margin we A can for that would we to $XX dollars see increasing. of big of year-end. why gross million maintain EBITDA

Nick Mattiacci

a are Got year it. of over I saw in kind price And you about Thank SMB? impact any you. talking talking ago, now that the wondering then XXX Office we if about just customers downgrading to SKUs. lower quarter similar was are that

Dave Wagner

not, Yes. in did a It' questions. was time. And the base. just good skewing we in That last addition different March. solid. not see seats We It a the price that slowdown like due churn reminder. was not was sensitivity. very That's installed did it was the down to It that super was of a good

Nick Mattiacci

you. Thank it. Got Okay.

Dave Wagner

a was question. It great

Operator

Nehal Instructions]. from Chokshi [Operator Northland Capital.

line is Your open.

Nehal Chokshi

Thanks.

why clear, Is because hosted exchange be the margin the declined to of migration, the cloud hosted. cloud basically the from So correct? cloud gross to to just acceleration that was reason acceleration quarter this

Dave Wagner

margin that's a bit little us. for the lower That's It's carries XXX right. Office Yes, right. gross

So dollars down. it as happened, brought gross rotation that the margin the

bit saw off I in quarter-to-quarter. think But it was a got down March that April. little have and we $XXX,XXX

looking are QX and in that we the at subsequent to grow So quarters.

Nehal Chokshi

positive? Right. explain a long can And you that's term why

Dave Wagner

these think consolidate a positioning MSP clear to Secure services. platform I Nehal, it for a positive, as term partners very long Cloud is the So of

solutions higher long provide including Office The margin HEX the the have time and productivity, not for compliance cloud XXX. future. but long, that's So for the we future is we that known a security

is and are leaning that one So that's are flow area managing transition. profit we we growth from the that HEX into

Nehal Chokshi

sorry. When basically? that means am can you HEX, you just what explain I

Dave Wagner

sorry. accent we HEX. H-E-X. am coming it through, I H-E-X, My hosted sorry. is call exchange and It's HEX.

Nehal Chokshi

you. Got

Okay.

were this additional maybe this that so services. additional towards past the what of quarter route the proceeded the you clear position and services through to run additional the Can move over terms therefore Cloud how adding as quarters on in they from the and to trials is Secure some the to you few well? I think data, at customers last attach least get gives that's data which And quarter and

Dave Wagner

take will that. We cut a it have didn't the in I script. at

trials net are tightly the seat with So adds. obviously, the correlated,

so And trials as month time in described that is the take off the net IT in trials off. bit low folks we were because December always numbers a little seat a

So saw it a the AppRiver. down. the trials have February, led was had nice best since March increase, we were which January, really April to

it's kind the that's So of a a It by month. rotation precedes trial month. adds seat window. the And just

Nehal Chokshi

Okay.

able that you will subscription? So from based give confidence hosted cloud other exchange you metrics additional then what that be as attach to to services customers migrate

Dave Wagner

Okay. Good.

thank So you for clarification. that

them which and that advanced the a Office our clients that back buyer our package to put plus think productivity marketing compliance-oriented SMB on offer, we together the suite So of that moves to been threat and if is installed portion going what our not XXX encryption, they are installed have archive installed we to we a is for backup. them best plus cloud the package into base, base, our partner's base, direct the

hosted North at three with more offer. we migrations, probably migration together on-prem least stacking that to Office And America. have any exchange than XXX or So services exchange company done in

We are over XX,XXX migrations.

We are good really at experts that.

And strong these that migration a we customers have so real value. capability in that that's

Nehal Chokshi

on-premise driver of that seeing? All also are exchange, then is Do you Okay. been accelerated migrations there you email this think a the HEX? also And right. that's

Dave Wagner

partners of customers our a hosted fantastic I well on the do I think, that operating we servers. our exchange behalf So job know, and actually

really best-in-class. team Microsoft that have doing We a really, for been with on closely We that. that's a really collaborated long and time

work the really what Our going tended of were was in customers, offered. to the we partners of SMB communication on. customers and complimentary our aware as particular, be partners did, we the not And

the with capability So a more of alluding Nehal, some I that have to are think what moved of mid-market there we we be who buyers opportunity think hard yet But haven't will really it's in going happen. for us to, are exchange an for on-premise option. you is good acceleration those year, the which that migrations think for those really, I are that an further existence, a look still to contribute is making in as to expert help servers upgrade really this get

the slight that have about. we talked offset have will We

We holding hosted exchange of well. own the have But as our customers that partner in working well. we that to are is side quite migrate

And with because do the it's overall, of we the a we positive balance some net migrations. anyway, think, these so

Nehal Chokshi

you. Got

then Dave And Rockvam. Okay. finally, for

why did that have gross that You profit review the the confidence on quarter. Q-over-Q dollars into you will second reasons you Can say that increase is?

Dave Rockvam

saw. March we It sales Yes. has that to April with do and the

the with So XXX the in and bump hosted really February. Office exchange we had up January

We of into And and continue But .And IP products. in to that's gross the continue the seeing gross to increase. we Office the sure XXX growth margin we we dollar then where also are there. see March for saw dollars margin April see growth

numbers we So pleased April the we with March are seen. and that have

Now we that confidence have gross dollars this quarter quarters. margin we coming will and we are May grow the in X,

Nehal Chokshi

you very much. Thank Great.

Dave Wagner

you Thank Nehal.

Dave Rockvam

Thank you Nehal.

Operator

Mr. Thank no any conference to closing at to would back you. showing time. for the like I queue over in am remarks. Wagner I additional this questions turn the

Dave Wagner

And in call. and thank have you great to you, We all for you look Well, to evening. I again Zix our forward thank joining everyone, August with you, QX early results. Howard a first-quarter speaking hope earnings

Operator

This and concludes thank for conference. today's gentlemen, you program. in participating Ladies the

You disconnect. have Thank may day. wonderful a now you. Everyone,

Zix (ZIXI) 6 May 212021 Q1 Earnings call transcript