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PFSWEB (PFSW)

Participants
Sean Mansouri Liolios Group
Mike Willoughby Chief Executive Officer
Tom Madden Chief Financial Officer
John Godin Lake Street Capital Markets
Jason Kreyer Craig Hallum
Ryan MacDonald Needham & Company
Call transcript
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Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss PFSweb's Financial Results for the Second Quarter Ended June 30, 2018.

Joining us today are PFSweb's CEO, Mr. Mike Willoughby; the company's CFO, Mr. Tom Madden; and the company's outside Investor Relations adviser, Sean Mansouri, with Liolios Group.

Following their remarks, we'll open the call for your questions. to call like to now would turn over the Mr. I some introductory for comments. Mansouri Please go ahead.

Sean Mansouri

Hannah. you, Thank

other go guidance, we following all as starting conference of estimate, forward-looking replay statement. available forward-looking the call the would anticipate, press or words at redistribution, remarks statements, I'd available facts, in Eastern our believe, the without way this tonight. call, statements. this The release, that the statements, will and in Harbor intend, provided Before of filings statements I PFS of via Any rebroadcast for Investors target, concerning well link further, metrics full pfsweb.com. will, disclaimer this The like other the Safe will website expect, everyone historical are confidence, forward-looking than website PFSweb retransmission to identify like strictly statements. non-GAAP can presentation, similar project this be also section is company's to certain to XX, and expressions, expressed as replay forward-looking be consent be as to X:XX used prohibited. A the under as typically in are used in well make relating found written p.m. webcast any at remind in today's available on August call through

Executive like Now, call PFSweb, of Officer Chief Mike turn Mr. I Mike? to to would over Willoughby. the

Mike Willoughby

Thank everyone. you, Sean, good and afternoon

service listen us we update, financial which two you provide end-to-end segments, our and to into will our call insight business business our deliver as into getting e-commerce additional today, the Before you hear offering. through

range. fraud by activities. technology, including margins revenue, order engagements monthly This in and to payment provides business operations services, customer fulfillment, Our XX% characterized XX% services, care, the PFS generally multi-year gross recurring is order-management management and segment

professional and digital including and commerce Our creative platform provides LiveArea technology digital experience marketing, strategy, segment and development services, and integration.

as a managed to marketing discrete that gross XX% projects reoccurring and are high between primarily does with well in retainers, characteristics level it’s from segment engagements existing target services recurring We as revenue While project digital business be clients, of this nature. have and LiveArea by driven XX%. in margins generally

on, moving positive from reflect initiatives implemented momentum profitability our continue results XXXX. the second to in Now, quarter our

in high the clients level activity Our of fee project margin growth our and of to PFS adjusted in and executing strong EBITDA. supporting gross benefits led service

that clients, EBITDA benefit experience PFS In a our to PFS generated QX over increasing This favorable prior X.X on continued margin transactional business, gross fact, the million as was year. record, from as work a XX% shipped was last incremental a increase busiest the than year record quarter. as we well contribution. with certain higher adjusted XX% project we orders, from volumes second more In quarter

and for clients quarters. to the as to high level delayed at expect performed two also our first we LiveArea half We of in accelerate growth a project continue year business, from in the launches the ramp back

New in well. bookings from as were LiveArea QX strong

clients, percentage XXXX by are opposed somewhat of and XX-month in reflects over a retainer performance, recurring our service bookings mix LiveArea given however, a from which recognized were or On segmented guidance. and expected project our executing in to leader While as are its greater than PFS continue recognized where unit be as industry. which equivalent the an in fee SFE year, timing launches level a of revenue build the bookings, as QX, in while in our our continuing upon nature, X-month recognized we revenue. less to at established to X-month Overall, slight we corporate to a typically shift encouraged are we revenue slower and half basis, result EBITDA strong overall plan one-time is a in agreements, commerce overall revenue fee of typically the expected, is the we period the with incremental revenue strong adjusted from and for period a are revenue position of mix, service in a project With expect to often first nature. our SFE high an reiterating generated business revenue marketplace

Tom? Before discuss commenting activities, to Tom, with we quarter our wrapped more operationally, business how financial to further the and on results development over to our turn like the call in up I’d detail.

Tom Madden

and Mike, good Thanks afternoon everyone.

some results the for highlights of QX. Let provide me

XX.X XX.X year-over-year QX, touch later, saw segment our insight period. in in For fee provide activity. which compared will as the consolidated to million prior we slight year this more service into million, to reduction a I revenue, decreased our QX equivalent on

strong in see service basis improvement increase Starting XXX margin gross XX.X%. we did fee to profitability. in points an with very However, of

efficiency the of engagements. and margin lower improvement With primarily by margin the range performance overall certain higher on margin to offerings, of from margin was benefits our and the operational client improved XX%. other transition This and as higher driven gross a XX% PFS focus activity, engagements as well work than gross service targeted project

activities, with with service gross result toward margins forward, range, would the be to in project as as and expect revenue PFS based anticipated well both the the pleased free I QX the going hopefully line the very in activity in reduced higher targeted end. benefit client future mix While projected our on higher more other from our margin

XXXX. also increasing X.X adjusted $X.X to Another key quarter, profitability improved XX% metric, during million, QX XXXX in June compared significantly to million the EBITDA,

As EBITDA performance. basis XXX by a driven percentage XX.X%, gross to margin increased adjusted revenue, strong primarily of points SFE our

generate position in June at our debt of and was position debt XX.X is an over million million and of result XX.X Turning resulting total cash then later to the X approximately clients. a the December are that XX.X our client’s well XX, cash expect to by XXXX XX cash a to payment million, flow net we which of generated were June million, capital from compares XX.X debt of during from just the offset of million. partially expenditures period. to remitted increase year applicable as collections operations to certain our cash as sheet, by The our These acquisition during to million, the customers timing million XXXX. XXXX net our of to PFS of X CrossView calendar earnout final at operations primarily from cash totaled XX, and XXXX, continue the equivalents balance Overall, received

LiveArea Now, let’s presentation and discuss of segments. Operations the Services. two our financial PFS Professional

was SFE enhanced was forecasted clients, with offerings. Our volumes by strong XX.X%. margin fee of than project efficiency performance quarter higher and in This IT The result on approximately higher work. SFE for the further high as a focus margin. of of of revenue incremental with the quarter, XX.X margin PFS integration XX.X% and to and second gross service several transactional as a XX.X Margin revenue of PFS a gross million operational margin segment well for strong generated million a last year PFS service activity engagements compares

period Our revenue year. fee approximately margin XX.X LiveArea second primarily fee gross services, compares partially decline fee of the service client XX.X%. generated in and cost of with from quarter service The by segment during due as technology expanded margin as project client fee of XXXX This offset of gross a revenues expected million service fee higher reduced XX.X% increased to LiveArea gross activity transitions, and decreased is revenue LiveArea last certain revenue projects. margin client to than as second quarter in on service incurred service fee clients, in the result service new for million the well relationships. certain XX.X

year. we continue business the XXXX outlook, our to to year For calendar in accelerate LiveArea of growth half the expect back

shift revenue to client to our which and XXX the to XX referenced million previous mix retainer now earlier, given to between XX million project LiveArea guidance revenue of compares we million. activity that in Mike between However, million, expect XX range

compares million PFS our to million. million, we XXX to SFE XXX between XXX of XXX guidance range For our million expect to issued revenue operations, and previously which now

With from reflecting the maintaining XXXX. XXX consolidated continue guidance expect each are equivalent million, segment, adjustments revenue and to to fee XXX corporate range up previously to to million service and between X% growth our issued we

adjusted to million XX XXXX. range target from We between to also reflecting million, EBITDA XX% continue increase company-wide up to and XX

equivalent certain preparation and to that quarter, the I the lower quarter slightly benefit quarter, in call from but increase due season. XXXX concludes as well as fee other in over to For margin performance the of the June projects cost compared turn higher to will EBITDA prepared PFS my activity, September service consolidated back a adjusted quarter, reduced the XXXX our June holiday remarks client I I’ll some expect XXXX Mike? Mike. also from incremental expect revenues and the This upcoming as

Mike Willoughby

Thank you, Tom.

looking Now, at specifically PFS the segment.

to XX%. revenue SFE long-term rate growth Our is X% target

with efficiency profitability However, through our for higher-margin This revenue our on our somewhat offerings. engagements improved improved offset will is growth focus service primary XXXX. and objective

seen exceeded we’ve XX% this raised have than growth our growth why been stronger margin in first very half gross the our high-end as revenue to a SFE expected the on outlook accordingly margin the evident From is from PFS, of perspective, Although single-digit reflect year, low XXXX. focus our target profitability in to has which quarter. we the of results we XX%

business three in million value, PFS based annual development to worth current average client new a we signed for contracts projections. activities, X.X combined turning on approximate Now, contract programs

beauty signed with comment contract Go-live the direct-to-consumer to that agreement. of call, in average overall portfolio. under please also our website in expected key contract of to Brands, of Synclaire and section fulfillment fulfillment service offerings on land expand classic annual www.pfsweb.com. order went a a with live order in engagements the and ability and value or July contract client direct-to-consumer programs, an company, To Expanding and this and is our a is corporate services client also example component our key children's current within signed these X-year on new we is fashion existing information QX. our more strategy. land BXB other at for For another measures BXB health to DXC discussed and BXB refer expand investors footwear a contract expanded master This

PFS brand were these this up-and-coming call. last end quarter in not programs, order the client brand health contract April some brands segment no our programs master the as management. And remainder at momentum. as mix compares mentioned a payment The reminder, gaining QX. management, At contribution little quarter, client as of services to maintained the contract recognized Lastly, second and XX have live smaller year wins on of a our revenue. all XX processing, representing This With strong brands. are or well and is would include DXC the pipeline we under any XXXX and of of brands. names, agreement. signed PFS end three and went operations and XX another of our PFS and operations fulfilment, with new here fraud Services existing beauty XX This signed active larger active the to programs a

close, signed into Now, don’t on new client's awarded quarter to while contract fulfillment United we new contracts after normally recently a were we expand footprint an comment existing European Kingdom. the the

but the year, a as rather issue open expanded will launches us this press London new We will this in win later enable Greater to is program the a distribution release when it area. center significant

Basingstoke near new I’ll are our QX and center this live this existing QX call. on We our details have this in go management development DC aiming with efficiencies gain order expect year. location in we to to more secure to a in of contact

sustainable the is revenue to XX% on segment quarter moving for contract of for range. in service annual contract good had margins retainers million long-term to the and projects our in gross LiveArea. year $XX.X value, fee quarter. target the segment, to in a XX% $XX with We new XX% for LiveArea another and project the slight contracts million growth Now, this with from Signing increase our average XX% bookings rate ago approximately

revenues recall, a You where new clients. current for provide have annual recurring related consist bookings LiveArea retainers our projects to services one-time contract new new includes and clients for value a on basis for we also and expected average of may to to contract

to projects complete earlier, recognition have retainers a recognized projects a course revenue mentioned X-month different I a are X-month over as retainers for typically we time As slightly whereas frame, in of often and the window full-year.

than in the XX least in quarter, the of historically, bookings does provides of segment we as better long-term fully second $XX great would for is revenue more the the recognize visibility During retainers was impact these since year million new way seen at towards it over months bookings. weighted retainer much which we’ve heavily won't That recognize remainder out. our bookings the we outlook XXXX, which project the

for extend level somewhat to and we expect have in complex LiveArea model, haven't of granularity come engagements also for renewal. be simplify gone as We historically our up retainer they seek these In into an recurring this bookings. the to we nature, financial story to contracts as effort

felt XXXX segment, of we some outlook. effect this it its explain LiveArea within to However, given revenue moving was the prudent parts on our

LiveArea in following administrators, our wellness practice this a We on a hope the previously Salesforce surgical U.S. LiveArea of supply Continuing engagement company expected June, storefronts D. and landed also a of Kat share implementation For last that multiple expand Hybris we wide health luxury SAP Cloud. launch the This on fashion to in U.S. color client. platform. This Commerce near beauty of distributors one a launch in strategy implementation teachers, the North Brand a we of Cloud the and fastest Jacobs sites Von industry of of the successful October. apparel this also LiveArea Magento our pleased side, supports of SMB as for needs in for Marc June, another many be global across to on will build America on client growing a launched little brand client activity, the were Kendo on completed the that and brands online Europe website is And follows the for shop with LiveArea QX the to educational on a future. medical assortment Salesforce by successfully and The in also LiveArea announced to in and parents the meeting of launched deliver engage is first we with the supplies programs LiveArea land and late example the Commerce with another the redesign our name large extends

XXXX story. questions we of of the our for opportunities our and and what expect we're for our months up level fall to Tom important as of managed of call I by or QX. answer. marketing of over carry happy client ourselves shows segment projects of digital the programs momentum will with this engaging and road the meet to reflect I with scale communicate This execution first you QX, Hannah conferences high engagements very to the retainers year likely do at on look this for through and available expect XXX for growth I next LiveArea our clients. As performance engagements technology indicator compares half and exciting of will believe seasonality to have client an we're and a open the answer active always, non-deal But the and back of maintained continue quarter-to-quarter make fluctuate the pleased few the one investor end of We’ll to Overall, is end at services. the indicator performance with and continued forward all question with to now portfolio. half XXX the and revenue. working LiveArea overall project of our of the investors our metric supporting phone. one it segment, of or the various for to

Operator

from Thank first take Markets. Street you, sir. Capital [Operator we’ll our Mark with Argento Instructions] And question Lake

John Godin

guys. for Mark. for is my This Hi, on taking question. John Thanks

kind – of Just two, up, of is to past some over just to of in high-level increase how Thank quarters Amazon. of e-commerce kind fluctuate ramp the you’ve and your kind thoughts to couple begin, TAM just sort potential maybe of if over season of relative kind starting or you holiday number could on the you. seen, marketplace how go the

Mike Willoughby

the appreciate I John. Thanks questions. Sure.

expecting of when year in PFS the of the hopefully is SAP the the first back we to to signed up to plans I in shown when up year on ramp first for forward really we the on half the side, the part the in make back working particularly the this holiday ramp in look of the continues half. into particularly part B year to LiveArea the we start segment holiday that in are have our again engagements get where the So the to once we that holiday, Hybris momentum have we specific the side of to year, implement as period, and time we’re B the think QX, this we

also once start year activities to We consumer kind to would direct to see to up this again expect right prior holiday. of ramp the

into Although interestingly, commerce back salesforce be a platform, as than year starts push on project kind we’ve might of little of different seen year. the the this bit past half years the club

next direct-to-consumer So, projects, of But talk we PFS promotional expecting talking the primarily our a clients so, in with and holiday to half prep, we segment in sales the platform the they’re we’re expected might holiday XX to forecast about we little run. activities the days so about regards final expect the expect over on back to to their when or receive working on from the to projects salesforce be holiday their start that year. busier and

perspective both get immediately clients on Holiday Friday. on will do then to Monday a words Black and what’s – after planning Cyber Thanksgiving and our better to We are the prior

we operational our And it say and should QX specifics, QX. say earnings our on activities also looking again our lot to would forecasts, that XXXX way objective. their forecast. And has like year-over-year, our second our question addressable level the profitability that we align maintains sales do once we’ll If our target, growth, we will holiday, that manufacturers clients a our we plans as support I all that holiday indications strong John, analysts call couture GMV, this incremental beat products, and early high-end as the so verticals the more to PFS to and based expectations we’ll manufacturers to into side brands specific beauty but be another fashion as clients clients and in go conference the branded our both to were of target looking so brands, validate and We’ll home about that not many similar expectation your client’s exceed about again, we commitments then on on of particularly our achieve fashion, the but growth, our our and of probably and expect have then clients, extending and fashion, the generates that those at fashion in-line addressable be that into market, be our year, overall, thing. release see with of bit other would own in and and is the be I health staffing service brand market would of our look particularly CPG in brands would double-digit of and especially target well think while them our remained that part sort for within clients in as the revenue provide research kind a do, and GP health beauty obviously also collectibles a growth year-over-year to able to client so portfolios, little say to

continue in-house where direct or see couple scaling the through years of opportunities, both think solutions from I the client We clients on-board competitors. pretty is past consistent with to to up

salesforce with we again, SMB launch some target are at see addressable of very market and to and leveraging commerce once and of we to supporting. seen calling be LiveArea we the clients to continue are various consistently in the platforms existing than that rate on where what are about PFS are optimistic Hybris those cloud that them we addressable quarter platform we based and market growing although clients both both platforms is seeing platforms Magento also differences this has the with on those new the SAP We side services do the growing engagements a believe well. on platforms e-commerce the spend the And Shopify. as of platforms, platform the other faster around be tends the On the side,

platforms that excited GMV low to continue traditionally as are mid-market in about potential gain be than part know the the this, So, these lower higher you strength engage SMB operating and start levels clients of to they at on-board the that to have we seen.

So, market our to consistent at that high-single-digit are continue grow expect what target addressable we with to analysts overall would projecting. research with rate

John Godin

guys. you, Awesome. Thank

Mike Willoughby

you, Thank John.

Operator

next George go We’ll to Hallum. Craig with Sutton

Jason Kreyer

things good wanted quarter go, project some last so you is made afternoon. that just some little slowly? know LiveArea comments go this to expected we we into guys, then of QX just for in wanted client to to about of about where the And of I delayed Hi, are that on talked a – side deals that QX mentioned back Mike through It to some that, Tom, couple so slip related that the is occur deals funnel on I in to a – progressing but focus, just these slipping Jason side are or because launches, is expected George. you a then business. had QX, transitions I now to bit

you So, can little more just there detail there wondering bit a if or tie-in provide? is a

Mike Willoughby

Yes. some QX generate quarter difference projects had that a slipped that did there had to point, yet recognized incremental revenue expected were revenue that slip Sure. There and we were that point that reference had We booked we that expected QX. was they that some at in recognized at larger had our we into started, into generate couple did not project the would that projects the call indeed that those QX. projects we had of last

activity, project launches. to we they for project actually the site so, billable particular once we longer and client, scope That, of taking have of with like recognized engaged in see other have the the that now unusual time, their a projects definition, e-commerce itself, an an anticipate that scope still the slide is to we are where highly working launching began the so it entire close which would that’s and we us of we across the first quarter, is the are maturity to generate and revenues really reflects revenue, on expected. are for program, but than no but One this definition client now

The we because look include other the retainer had the those projects that quarter a compared higher is variable is, much project mentioned level at this that which revenue, unusual as to we bookings, already bookings reality would we slower that or bookings while fully included the have QX these results you QX at have offset, in year-over-year been had is we project that the and offset retainer if than I in not that higher actually would this project partially bookings, would quarter, bookings. look of expected, was slipped by

is mixed a sort bit us. this So, of of news for

encouraged level the bookings, We’re contract past value. higher of even the for calculating period retainer recurring opportunity where the very XX-month average those usually annual by indicate revenue, initial we’re

when high fairly contracts percentage and a for renew. they up of those renewal, we’re to have extend of come able We kind

performance so bookings up would even in good a year. over project the of we less year, for the pretty And also XX us those and half months while often XX-month have will for stronger of recognized to generally linearly period, normally downside XX-month much to whereas recognize within sight revenues is half line which or expect of revenue that, so, revenues it recognize very the into be X-month the period, over next a gives a a to positive, project over calendar quarter, more. the that’s The retainer over first period us bookings back next those a tee the would over project in the contribution they the we year, this revenues X-month pretty

and on project for So, year of side I think the in level of for would is a booked the which of see starts overall and with nice strong. the slower performance would it back beginning on the stronger to retainer we be if hoping bookings looking time, these at based what of recognize continue to high revenue, a some the strength really pipeline half same be our we’re and

we that to I'll as you now question. QX. as happens QX into answer other talk Tom, And we what see look look let more we So, about the and in

Tom Madden

Okay.

from question in to impact client second your the transitions. regards was So,

the the that a past, talked We quite because we've in the is engagements. business the occurs –is different about retainer-type have do bit PFS there. focus of So, as LiveArea often some side than little project

was significant more in relationship of of discontinue One also about but past side, away as we e-commerce not strategy talked only that with the last business transitioned made strategy, impacted the LiveArea decision fall, our the to retainer and the we our a had and Starbucks. side. so their PFS the in that And they engagements direct-to-consumer some

that relationship nothing current So, overly that contribute but from, had a side, on that was the did there the outside the significant of during not really revenue some on we year-over-year retention past especially in basis, impact where quarter.

Jason Kreyer

on the several you all segments. that. Thanks the two for detailed been color business It’s months since the into split guys

impact bit last puts commentary and between two your if wondering on on to just the you those maybe ability over of just sell months a or the are cross versus So, profitability how can give the takes us on segments? little and learnings things progressing today those your and expectations

Mike Willoughby

quarter this and to on from on for overperformances we’ve is of marketing look generating while that holiday quarter much will incremental in into lose ability to volumes team to along the about sell profitability. overall to into fairly that to those the set. I I your the in LiveArea our that unexpected with XXXX focus of that, comment it's comp I only think opportunities of sides your generate services which extent on maybe the services, the let on substantial side, plan the drive specifically client downsides Sure. because The translate clients Tom And and to higher the entire segmentation that reducing we investment has across the to with be sell the and sight that of the think overperform, benefits and segmentation of been within I’ll people that cross experiencing opportunity us sales PFS overperformance this and I to through routinely business all as is both opportunities close new benefits the profitability, answer been could done on upsell is incremental then drive things operational and that they take gives additional had within and gross the as the follows cross-sell those very side, the able into what LiveArea order team not of holiday, commissions unexpectedly, to that when we’ve potential scale opportunities, sales the up quarter quarter believe PFS be last incent perspective. see operation focus the some indicated sales they think able client question, a mentioned, us when incremental I and to doing cycle. large scale they the focused our deliver heels XXXX services it it and SG&A to of they I’ll done attention solution I on PFS part one side additional to speak happy looking the focus segment. of and operational specific but the as able has the to time last financial operational our the opportunities high-quality some that the continue sales set by confidence and profitability, do of forward allocate Obviously, margins efficiencies efficiently and in that business team's reflects for with last us, incremental PFS I business with of to regard that. generates profitability

end-to-end and things the deals executive services from of also seen for sales sponsors as quarters cycle both signing show LiveArea into new we sold as of had two to start. during engagements a end-to-end over We our we’re those potential the and sales past result that and and came actually pipeline the PFS assign couple selling the

to wherever And that relationships our so, pipeline, into to and with in use recognize with we a client our them to the client results re-platform their at as continue them. well particular the still the consistently care are on opportunities true digital with actually or program engage upsell engagement to strategy end-to-end to service happens or or sale our LiveArea by to to across. convert come management each create engaging whether LiveArea marketing their It’s once after continue that’s the support initial is side to customer to engagement fulfilment best our on the year's be last we ability the time or need side engaged end-to-end able to as services and both platforms the management of or segment's team or client one help to to team PFS offering, partner within that them

from we will we’ve new more, end-to-end LiveArea ones, side the but are segmentation. relationships I fact you we so, sold financial the the relationships let term, creating have of ones. And two benefits success think by from selling about then near the will that Tom, encouraged we talk existing PFS in new I’ll the

Tom Madden

cost controllable financial the Okay. revenue against regards well the across now, in be have units, in of as as Mike's can and comments visibility to management I’ll as reiterate each performance businesses. of you know within specifically kind that better each measured of those individual different expectations business they all teams the groups

So, it that monthly or might in is metric financial daily a play. weekly just metric metric financial a or be a whether

to We’re to versus evaluate the there revenue in there. the financial members these just is and focus ensuring able that actual component expectations the the that over there regards making improving of control and what that destiny cost sure by performance is full be their tools have team to they

Jason Kreyer

Great. Thanks my for taking questions.

Mike Willoughby

Jason. Thanks

Operator

our [Operator & with Instructions] take question And MacDonald will from we next Ryan Company. Needham

Ryan MacDonald

and on Mike nice here. Tom, a congrats Hi, quarter

between the I or of booking, project mean sort in of the the retainer kind mentioned with sales result terms focusing the quarter, as drive that retainer during deciding lower all, think these agreement expected does of at in cycle project than bookings just just customer more a of a was that change is engagement? you views, agreement, the of project trying the know, on customers sort longer-term you're versus it You more as to bookings

Mike Willoughby

first Well, speak so I – I’ll bookings. think off, the to retainer

our bookings continue some either at making to And supporting the that a to new with like within project logos with reflects work that to are to a to decision or same retainer then services to time maybe clients in on cases obviously the to bookings project in can are The platform would do they stronger and one-time brand-new doing teams to onetime after increasing or project. sales do those and we current net in I sort innovate partner revenue team project a recurring bookings. we’re platforms, a are marketing of of who new on change obviously, engage client these we’re projects. is we where go increase kind what digital engagement opportunities think a the that as focus manage opposed our include

slow that things look our at the macro affected going year were think control As of that that half are type outside the in first this the we on project starts. I there some quarter, are of

headless Magento greater platform. to the Manager, option the be between you've really could platform announcement platform and Magento the by acquisition. while them We everybody the of lead excited driven I content really I for and think that handled is some had to what leading which content transactions us and deals lead prior experience the think could the of over to done a about leading acquisition think to platform could to that's I of by obviously the platform where Adobe's commerce e-commerce positive the engine, management integration the some well-known there is term. got e-commerce by Experience win And thing which long Adobe's Magento, are is One is are good the the largely Magento that out work acquisition the user of actually Adobe on e-commerce

said as hesitancy acquisition. make it that Adobe quarter to case So, we're we kind a waited to in probably platform, the a I market be decision some created the but see of do on will into the while that possible about about continue It’s next what people to the two. development, the think or excited go

think because or sales in changes decisions have pickup other ISV sorted first going of Although, part that by the out. kind our put platforms in may year, been the into been QX, have themselves strategy the delayed a we’ve and after that of decisions seen off were of may I partners' sales team

the as business it, LiveArea the year, of support rebound to reflects the over for potential while and into has strong a the revenue project back the work So, guidance guidance team on the LiveArea at pipeline hopeful to to half rebound look so recognize that see at side. now our revenue translates revenue we a bookings we’re the and objectives the new hard look of pipeline level and to as we that revenue of high revised book and we the pipeline, our see that we the

kind hopefully of So, that color. provide some helps

Ryan MacDonald

Yes, any getting a client around and running that opening guess And just too be don’t you talk versus the European awarded know that the very the and helpful. guidance incremental about it will then I QX? question new contract you with clarifying much the that with but investment know new customers, new center new by distribution current up center, required distribution I and

Mike Willoughby

we’re geography, would receive So, you largely us have to or western U.S. time location commitments we been a open up the some enable that location. the U.K. quite fulfilment may clients working clients new and that potential in remember the talking to open for to about from with either

out, the relationship this won over received the we that commitment this with last of turns current in As we form was client the expanded that quarter. client it

financial So, required well our location plans, other. this fall open initial our some facility We we one believe forecast that within of had level included investment expectations. to the in those a in or will

so suitable services least any When there expand U.K that forecast. had will a fulfilment client. on With the potential intend sign at above as sell expansion this we location, we us initial gives who to costs new it capability, what and we clients. additional to relatively we same within not expecting clients anchor take to small what some this we’re doing leverage with within client at be somebody campus be initial that position planned to or actually space So, we’re will look for is this with building do the footprint in the an then and on-board same U.K. incremental

anchor continue of U.S. it’s Once year, again, point. the XXXX open as to service up we to potential open look commitments reasonable client the for looking then expect to target initial Western include we’d be sort And So, that client location to kind of well. to starting would we be additional and looking the location as next costs in we to in that to

Ryan MacDonald

you All much. very right. Thank

Operator

the any call this our session. turn concludes to to question-and-answer At this Willoughby, back I over time, like would Mr. remarks. now for closing

Mike Willoughby

and very last holiday business tell, our We're you call look attended all the third in quarter forward our excited November. conferences results results activities. thank like would quarter. I and happy main everyone can I analysts Thank look we’re for in business. excited Hopefully, about that our going in you, attraction developments with strong forward wrapping many of to to into in the as and seeing looking with of you forward the Hannah. a We the we're have non-deal speaking we upcoming investors, the with we said And report before, year incredibly up roadshow the and the clients. our We're from to the our today. as to

you very much. thank So,

Operator

conclude teleconference. does that gentlemen, and today's Ladies

you may this Thank participation. time. You disconnect at lines for your your