Cody Slach IR, Gateway
Mike Willoughby CEO
Thomas Madden CFO & Chief Accounting Officer
George Sutton Craig-Hallum Capital
Ryan MacDonald Needham & Company
Call transcript
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Good afternoon, everyone, and thank you for participating in today's conference call to discuss PFSweb's Financial Results for the First Quarter Ended March 31, 2019.

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, Cody Slach with Gateway Investor Relations. [Operator Instructions] I would now like to turn the call over to Mr. comments. introductory some for Slach Please go ahead.

Cody Slach

Thanks, Lynette.

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

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

Mike Willoughby

everyone. Cody you, Thank good afternoon, to and

OMS eCommerce PFS our as technology PFS we last update. while years FaaS CloudPick; perform only to Plus; and Sterling initiatives. our all a and us since our include for our at both PFS our the include: growth short market quarter, across such high SMB several expertise the next-generation Shopify been RetailConnect initiatives to to addressable to increased to corporate Commerce offering products March continued LiveArea for providing growth come. the and LiveArea and our profile two include segments, LiveArea service We These expanding while months new these expanding platforms of During believe clients like opportunity business introducing accelerate IBM our and level platform. BigCommerce It's

key with make today's So LiveArea on our important we'll go-to-market call since decision focus our approach. then, changes to development to beginning

stated we've marketing with client generally technology for services LiveArea, existing of activity revenue have we renewals pleased calls, been including on and As recent digital engagements.

have in we new sustain targeted our client in fall continued of our client been to eCommerce has segment. an However, for projects. on business pipeline project replatforming short emphasis level insufficient to the believe narrow, growth generating resulting projects sales too new We our objectives

go-to-market commerce a intimacy strategy Our clients management. to the that include our and drives journey entire performance to objective broaden our with customer customer is service actionable offering for end-to-end

technical gaps is execute few formal Our to returns to and our hard consistent LiveArea LiveArea growth. portfolio, go-to-market very a leadership working portfolio in offerings to team begin from a our world-class define market tactical and refine and technical close that plan

clients. While existing valuable on have work call. in this LiveArea about of our the the pivot is the performance LiveArea the we our the we supporting the with I I'll for of pleased for are team job later great and segment to a doing go-to-market, business very in have now am very vision and expansion our enhanced to the early do outlook to business more continuing while say QX

in Before bankruptcy to of our loss want subsequent it due liquidation. Charlotte their segment the I the turning to unexpected QX, over on touch and during to Tom, PFS account Russe

Since the to high-quality lost including and of that half year convert we As and bottom loss, replace line the back two-pronged last certain indicated minimize revenue broad have XXXX. to These XXXX. last PFS are the and to in of contribute back segment the and call, at conference contracting returning signed to approach several are deals the are valued fine-tuning of we awarded PFS growth assigned on our pipeline sales and half million value, all business annual the diligently adjustments call, costs revenue while with build impact to we to taken new expected a $XX working fulfillment more. in and number a the a in $XX in targeted million contract deals capacity our in rates our to of

pipelines in the have the one also in potential that contribute moral have to of company revenue history, services close We sales deals XXXX. largest for several with and operation additional

this revenue We Charlotte more new deals than offset these Russe from year, exiting a contribution will margin. expect lost at that higher

diligent business, at we into we're work a of the PFS continue XXXX. the And to encouraged we of in business unit remain segment. the this our effort, strengthen half manage is momentum the costs and to strength team to expect the about carrying very With back PFS lot seeing doing of sales the successes the in year the

world-class to our So supporting again of great both business we do and segments. overall continuing LiveArea once across to in on recap, that job our PFS are assessment today clients portfolio a is the

positive We tempered its term results very by the being are seeing near in Charlotte though, the our PFS segment, momentum are in Russe situation.

but in are work here. the do early changes have stages the implementing of business the that that plenty key deliver we of long-term targeted are in our we LiveArea, will we components to growth, believe For

our growth. near could time, how we market the approach result, returning yet changes meaningful of are over which meaningful to we volatile business, making term show in at with the this in a results goal we As LiveArea in the moment focused expect

Before for Tom? progress, commenting further financial I'd to turn like call to quarter. over Tom our the insights to additional on the provide

Thomas Madden

everyone. Thanks, Mike, good afternoon, and

The as of in costs from partially existing SFE XX.X% margin project incurred certain the XXXX. gross was activity in prior $XX.X the XX.X% lower of ends the business SFE with decline expected $XX.X was revenue fee quarter, segment. the was to standpoint, the EBITDA revenue or higher-than-expected million new clients. generated compared consolidated of driven million adjusted prior to compared million in margin compared growth client a transition in and certain For by the LiveArea From period, for primarily margins lower the equivalent client engagements year an Service by offset year in fee first on with client service LiveArea PFS, gross our the QX to gross lower due decrease quarter, decrease $X.X [ph]. $X.X million lower the and result aforementioned in primarily due quarter in we LiveArea the to segment to

million December million XXXX, over at XX, debt to reduction position million. debt debt This March a XXXX, the a and total compares position cash totaled $X $XX.X and Turning favorable $XX.X XX, equivalents million million. was of $XX.X resulting to net a net in balance approximately sheet; of at of $XX.X cash

between While $XX flow of we we million level my current debt $XX million during to during estimates and generate continue expect to that stay level the free somewhere are should net cash year. being XXXX,

the portion received the benefit clients' our a our later includes clients. remitted from are cash As we collections in balance have cash of from our to of stated the timing certain past, customers that then

some So a under at is there always quarter-by-quarter not which basis, our variability is control.

March million. Our capital the was expenditure level in approximately $X quarter

continue depending to activity between expect the to segment. client be in the million upon XXXX We expenditure spend in our new $XX $X PFS million to capital

the a year incur in to we we remainder compared rate expenditures of to of So new as quarterly as higher bring level the capital clients. expect QX run on

our segment of results. components key discuss business let's Now

that presentation in to our Before we have doing certain services want business let segment units. reallocating our further SG&A the by our March two know made you so, costs operating some corporate changes to of the for from direct shared I quarter cost

further quarter level, refinement of March overall to This prior year results working business moved this $X business allocate our per We structure cost units. from evaluating also high of to the approximately updated have our million approach. new consistency of with a we the to part SG&A cost At this budget our and corporate quarter cost reflect units. to is

to standalone opportunities We time allocated, until to which methodology all cost don't be will continue would our including forward, here expect for any we business show to units, changes to make corporate a enhancements nearly as year. other allocation to key able make corporate. we fully P&L next more we further At look our expect but go to for

we operating to initiatives provide cost addition me update, PFS continue overview business. that With refining the to control let allocation an identify our the of designed the In across segment. methodology, to improve leverage and execute

fee generated PFS that segment SFE margin of million $XX.X of service Our $XX.X This gross year quarter. to reported million of first gross in the XX.X%. margin of compares in the quarter with quarter the the XX.X% of revenue last revenue with for SFE

quarter impact quarterly as bankruptcy PFS primarily fee $X.X offset to the due discussed transition to in compared existing for update, including and lower and due primarily million QX from contribution in of service client accounts, support by Charlotte our partially to SFE marketing incremental was from last prior growth on the sales, clients. the new and decline to The the direct million revenue well PFS as certain as growth. decreased PFS' As costs targeted year infrastructure the $X.X to Russe liquidation, segment the revenue expected

quarter. to decline was in offset our The primarily The efforts applicable project $XX.X revenue of the million $X.X client in current compares decline a higher-than-expected as XX.X% partially reduced quarter lower with reduction primarily of decreased client last activity operating revenues. the million to million lower attributable to projects. fee volume LiveArea well of generated due the in was And million a service LiveArea decline on margin $X.X as service to from Now revenue primarily first this decrease cost to transitions. significant $X.X last year. services is by LiveArea's direct technology gross certain in response first margin and due fee in gross This is incurred with to certain of which expenses, gross cost million in costs quarter This margin segment; the LiveArea to impact XX.X%. $XX.X decrease revenue fee the year service to gross personnel

not as to data, these we are reported the business These assigned one to include also of - directly the two addition business have cost costs that corporate segment In segments. SG&A. currently cost

in costs primarily quarter by to due prior of a Our related the year, compared $X.X personnel-related XXXX corporate declined to costs. million decrease first SG&A to in the

mid-single-digit our low range percentage continue to a percentage increase to low basis increase we to a in at single-digit on outlook; SFE consolidated to basis. XXXX revenue range compared and on XXXX, a the on to our EBITDA Moving target to adjusted XXXX

as we the back call second result over my go our benefits half look initiatives and a we current revenue currently do We and relatively at as EBITDA EBITDA and to in level improvements As QX. be prepared revenue SFE This of of I'll Mike. expect similar wins. the to as new of adjusted through expect turn anticipated concludes a quarter, SFE client June our the XXXX both we and the adjusted various at remarks, Mike?

Mike Willoughby

Tom. you, Thank

we is our her a of specifically, will our just As also governance. that to I two initiatives Directors. more rather March ago, strategy developments was rest of appointed information in in regarding both Earlier contributor products may of than with I'd years the months time and And sales development viable key experience veteran new key XX new She today, call Board's like and our mentioned earlier, more the the as extensive invaluable cybersecurity Mercedes technology leadership comment to will given the De asset innovative be and product Board on extensive corporate last ramp growth our on QX technology proven our an business a focus update solutions increasingly have and begin Luca stats introductions. segments. since background creating seen and to systems we that you in Mercedes role for FaaS be e-commerce. to

LiveArea, worth This booked ago Turning to in ACV the sales a in XX combined million a ACV. the for combined estimated worth to $X.X year estimated engagements in QX; engagements we then XX $X stats for million quarter. compares

projects XX a estimated in this worth booked million $XX.X value. a also projects estimated XX combined combined project compares $X.X million value, worth We project then and to in

from revenue our continue expected comments, with engagement of and engagements. As annual benefits I my earlier we be the pleased to stated resulting those the bookings financial recurring in

bookings client team. sales we sales of project the problems, go-to-market the served which However, top experienced. leadership of new the limited have our for highlight underlying is have entire continued pipeline, the LiveArea priority quarter the disappointing our project to simply Addressing challenges size the

This start a year, current $X.X a compares worth programs For based PFS, signing projections. for to year then contracts $X.X for had sales a four million contracts four the ACV estimated signed new combined for in on ago approximate good million ACV quarter. in to client the we

maintain contracting are services signed QX, continuing and As of I one more additional to commented while our operations earlier, contracts we pipelines for with the since several sales have history. in largest

the and services client XX engagements. engagements end we ongoing QX, retainer at active of and representing engagements, had project LiveArea, discrete For managed

of PFS, For XX we XX QX. at for client brands end active the had

initiatives; platform for with of Turning a make SMB our developments some to project with contract signing to LiveArea with exciting our the Magento an progress with we key a client. growth current start-up brand on continue

excited BigCommerce managed We've are our closed engagement opportunities We since also and service platform a new already on in announce with to and during pipeline. our projects quarter. the exciting the we have more partnership BigCommerce two that announcement, BigCommerce

with the detail future. engagements recently LiveArea Finally, two Salesforce platform We client on Commerce Overton's our the we continues capabilities, including features managed our with broader support advanced were launched in IBM reputation first launch Shopify OMS signing with to client a also pipeline experiences, services. on the potentially, work names, projects having continue client agreement our dynamic providing the forward practice Cloud LiveArea Plus on the the Salesforce of client, guided of platform. leading-edge platform. of deliver and, a to and further progress Gander key and Shopify encouraged are encouraged with as to a services recently ecosystem. specialist ongoing announce win platform. personalization the some to And see our hallmark the and in successful look selling Sterling of world the our I'm Cloud grow rich which I'm more speaking camping nice top-tier names to pleased Outdoors we brands, the able very to applications, with and to are Commerce already Sterling of commerce be April launch the Salesforce on opportunity of including we user

XXXX. a we on pipeline to We product we're launch additional a very provide now and to coverage also FaaS. with time, very progress locations with have Mall I'm in of At Simon close the U.S. client Dallas-Fort later RetailConnect more locations Mall this in proud contribute also Fulfillment-as-a-Service launches. in year, shipping continue first Sterling new first PFS the mall-based from making I'm the X-day LiveArea RetailConnect successfully sales rollouts work their their aggressive and our four these clients Worth to potential production ground in this target omnichannel to in pleased already or country. with location in this team multiple preholiday for project the stores with we line. Metroplex, five with our to and very have Simon time pipeline initiatives deployed our our objective have the the We OMS the clients revenue retail across regional cost-effective in various across the to hard

the some Conference stories speaking our again featured this engagements various we continues to recent pop-up Our interest highlight existing marketing year, of a pop-up recent on product clients. for the FaaS several events, Once one pipeline our client both holiday for of Operations and DC Ecommerce new Summit drive including in success pop-up have during of April, in FaaS our sessions.

this look booth, to We work Operations new our featured significant one potential also two we pipeline to a At identify generated we with to clients bring pilot later CloudPick in to our building and Ecommerce year. as for working fully which this CloudPick, clients offering we're product or market point, CloudPick nice interest. are Summit of

of in segment Although And it is for execution is very of the this positioning early early in go-to-market operations believe CloudPick, to the automation market. serves a very service product viable I our and validate warehouse unique interest encouraging.

in Russe. work keenly particularly, segment LiveArea on from while focused quickly back looking our also within of to bounce hard revitalizing loss we the ahead, we're Charlotte PFS growth, Now

remain XXXX, in Although achieving for to plenty year position work expect and there accelerate stronger of ahead, business. to fully across growth is we focused on the our the targets a exit

our questions exciting in As the always, at happy with including and next New can you L.A.; over open there engage and be Tom don't by I for question make But conferences few B. answer. communicate months, and we'll call to of answer D. in investors our to York; phone. are Lynette, story. several we ourselves Needham up if We'll we Chicago. and Riley see the always in now Davidson A. available all


question Lake take We'll first Argento Instructions] Street. Mark your from [Operator from

Unidentified Analyst

question. is This you for my on appreciate John taking Mark. I

PFS it First some on sounds a in you the segment, sounds while. guys like have that like is good it the been and pipeline wins, highest it's the

behind really what's of key of going confident kind back feel just a that's drivers that and half could you're you to in here. been the to If give continue grow driving why the me

Mike Willoughby

to Happy question. John. Thanks, answer the Sure.

what of the on collectibles, and and that think and we we're a core result fashion, and last have the sales primarily for like the which now investments year verticals. win, So retail vertical chose we seeing health I couple home to key of right marketing to markets is make the are focus beauty, fashion

We in we differentiated really valuable portfolio offering the we highly and have have believe is references industry. where our great service client where

if so that history. And in it at names health and well-known our made up brand we've is pipeline, you predominantly look the in primarily. of those this and of kind fashion largest seen it's one beauty of

those investments I So it's seeing. the that result we're think of

what industry think, I seeing a trends couple our there As of, us that confidence, in that far as are we're favor gives us.

share. there's as is certain competitors having market to that challenges, them would We there. One we works so are to look of and strong and our challenges favor take

of lot beauty number want early-stage solve market, the with single The and turnkey-type that are engage a that of a of in can simultaneously partner kind solution. clients with seeing trend health really who problems a a to to we is especially fair and other segment, coming are

and offering particularly SMB-sized that we end-to-end compelling sexy. our to be super in market, So find

clients sort they kind opportunity I'd in think that end potentially And invest us to that meaningful it we really our nice cost SMB know that in of now then to ecosystem just with incubator continue appropriate that's the into those SMB seeing I the point us. drive clients last the have, some receive think is and and an to lower thing as And we're solution opportunity from of I engage a platforms, can like reputation think, I Magento, of and us. basis, an BigCommerce a space. audience these helps Plus And that of really and turnkey results Shopify so gives the that with we create more to solution enterprise the appropriate kind for them of engagements grow to of

So some driving of I are those that, things the think.

Unidentified Analyst

All right. could strategy, relationship And an what about journey. the customer moving talk entire ideal some then through customer the us thinking about kind you look of go-to-market as to of like, maybe on new of example you walk LiveArea; an would

I think that would be helpful.

Mike Willoughby


have thing is of past. abandon to in one worked don't So that the want the certainly we things some

We move our aggressively always and implement compete be to for brands projects the will core to part want first replatforming people strategy. That's from come of as time platform. other continue and to market to platform to as going for one or win the

investments the strategy experience installed services have them at base entire technology from part platform engaging to platforms We with journey I retainers already requirements made, overemphasized also we've advanced involve the message, the then our that insight we're selling want and to to our guided to And we known portion and on deployment, technology with generation is efforts these that's help where these fully post-click the is partners integrating I services e-commerce to historically such they with journey. think, it with that's clients, the base effectively. just across efforts strategy have, target purchased our and channel our addressable successful the we these marketing those marketing e-commerce demand that continue going that more into installed of market sales that But our make are, the and win user to and part customer of really the sales frankly, capabilities to is projects, that, - go technology agreement opportunities. around which look to the these digital our applications total But as out to may all deals. think go-to-market the have the already and generate involve platforms And going managed with work won. field who the biggest new win engage is side and of struggling enhanced be effort customer on to for, sales technology IT to for to and well PFS simply opinion

So in management being the that the biggest gaps we we're technical few that identify around and change a do that's gap just the are I to experience. there portfolio want that content user making. Probably, solve. largest probably

through strategic through we capabilities will a do to some generate to help some where as those where growing that us which to quickly revenue us want from to help we that organically more those gaps. are We look combination bridge we plug of be, partnerships of but likely will very

into couple earlier, those are the those a the five So But we're it's bear pivot, this as we I half back we're things as fruit of hope that things we at weeks year. are early. And the will of look very that doing. so said


next [Operator Craig-Hallum. George from Instructions] We'll Sutton hear from

George Sutton

the question. Just a last to follow on

to I direct that be understand moving a from channel Did with working suggest bring partners more correctly, You away business. suggested focus? in you'd that does

Mike Willoughby

point think in of in partners I will think targeting it's we of addition, additive more channel base But the an aggressive the channel continue be aggressively generating the work partners. much more opportunities. with I independent installed to that in

we to the channel past. drive important to that's to in addition our independent thing probably that partners many channel success with continuing engage efforts of go-to-market drive we them within in use partners, as the and would our opportunity to other have organizations be use opportunity, sales to channel that marketing customer of have actually primary but is partners can The to note

the opportunities way and addressable the rate of funnel that top I it our number by the to to think we problem, issue. increase I think that It's hasn't pipeline. the change conversion been Frankly, significant installed the can market the the through base. that's pipeline, way is of been the to funnel the top build of to drive have targeting

George Sutton

the of concerns the players, going normalize, of top who Is sort see previously challenges seen? from of been larger been things consistent Or what a different would of M&A had one the once and And a perspective? issue? they the had company-specific pickup. like And had Now set been funnel some that. e-commerce through from that an you issue suggestion of industry with this you've this is your a is

Mike Willoughby

I think that there have is probably and there. might partners we did year a combination than of reasons they we our One internal some were some for having of that that. is years expected things were slower wished, mention there might last or

market. lot at a of so more do trends those some going there is effective settled I driven agile seeing of partners I more there we're that they're think platforms has to think roll replatforming out base clients' industry the some these on traction better the that And least with benefit some and by of point, there. I primarily as projects, market, in pressure at that that I think as are out. functionality, accept cloud-based think the starting a a put for are sides to willingness

seeing post-launch clients these spend projects to of large date. a really implementation tend just So shift customized fewer we're their as to

shifting an starting simply appropriate And they're base to to to installed project been services they're and really the with lot point. for minimum to then back very, point service managed after a gets sort it on not the are be built that. of just and as launch, then companies, years and viable to the of do go to very spend capitalize launch want main a a that. client's to in at iterate willing the We set we product so If the We've think phases. post-launch technology system a effectively. that to position willing years and or integrators doing services, are effective And

disrupted versus think advantage trend I we we're tap market being then that into that that So the in spend, seeing of by that post-launch it. if can takes

a those points couple, So in response. are I think,

George Sutton

That's helpful.

that Just just other naive what about one is. I'm is? CloudPick what you Could thing, discuss

Mike Willoughby

Love to.

So includes we in these day taking warehouse a infrastructure as OS which as routinely we cloud-based recently use announced operating can our that we which would automation of lighted CloudPick in that facilities such a in our picking make our to infrastructure to drive deploy packaging some are every that clients their we the the use just that well system, facility, that capabilities facility. in like use picking, available way carts we and that to

So in what to a facility. we the picking lighted have carts drive and have see kind seen on might system the would operating of and a same tour solution is Georgia you Memphis, with capability that you can that them benefits using own where in automation same of client deploy to in help the their that a very cost-effective rapid we're way the

our expensive require very say differentiating we're an clients that of of is functionalities as cloud-based release a in facilities our as the and as deploy our that for any us which what The platform operating you the road solutions resources. type is market. then some features map. tested the it's same well solution, we system, then been doesn't have the advantage is facilities, first the a second release carts are it take in own that thing picking think the proven point is much our larger, can IT practitioner, and advantage price traditional of. and on-prem lower to technology So gives we using Fulfillment-as-a-Service innovate and believe in And client might new this competitive us more much on as would the I in offering. it's see to as we the And another which

as for us, well shelving should footprint bundle initiative. which with all lightweight, margin, low-cost to a like and services tech-like walls pick in the It benefit higher is leverage We stations lighted streams look same bottom-line. will feel to to ultimately, Fulfillment-as-a-Service real our our continue and, we way revenue as result packing to a


[Operator from Needham. Instructions] Ryan to move next We'll MacDonald

Ryan MacDonald

incrementally the of you approach, go-to-market starting with more in sort business. cost this that With of do LiveArea terms area how do on manage to guess shift you scaling approach, acquisition you I business And as direct need in of this business? development headcount that? do customer the anything

Mike Willoughby

Right. Ryan. It's a question, great

think base, resources and against have, marketing look begun. the that there's to already as sales we redeploy this we I marketing the certainly to an that's, the at extent, side, So some and a installed of look on spend

ecosystem that that can sort that clients are there things are partners consulting that or think adjacent. we type role influencing with in in engaged for of do the with, advisory I the work very a are we

traditional make sort consulting-type of like that. where somebody an very We thinking can can relationship intro. of firms be with strategy be might You cooperative help

has that that So traditional there's looking acquisition work an installed a cost generate sales that customer something us. Frankly, lot relatively just of that's base a opportunities for is low to we're from at to and easy in that market the say, and for we thousand efforts. few target a own brands U.S. kind SMB marketing and target. There would of retailers are, us identify sales the with our above inside

very got and interest can productized or to and offering think where convert app And connections you to, app leads. think to So the And team. in a plug PFS but be in drive the LiveArea stores really order frankly trick you've the such inbound you our look with addition sales stores then potential has SMB play redeployment. say, think I that succinctly to then I which lot an the as far I capabilities highly of wouldn't you're the in not incremental describe inside that, partner those in change in spend, your for team can that I our field and way for portals a necessarily a market, ecosystem, platform plugged their side, that websites as sales there the into addressable in a have in just the deploy to market and is a to

And than so that's that market. much year back SMB is doing which key half we're lot platform the not market, of into a larger really as yet look to initiative the we that the of but tap so a to enterprise

Ryan MacDonald

partnerships that sort market and And there trends seeing, look as opportunities? And increased more any continue just drive can maybe you they on sort the OMS within the of launch the e-commerce? LiveArea you're business, you then in you of incremental how there at to can of about to compare is talk to that the focus demand sort sort of,

Mike Willoughby


off, and with would space, we're Sterling So that, two be Commerce first in of with enterprise I product. IBM the leaders partnered one think that OMS their recognized

you likely, believe going an Sterling an deploy are management the to orders, And you're platform two evaluating. to a for caliber e-commerce is most or enterprise If or, frankly, platform source one of it's we any be platforms behind best-in-class. going

the of on versa, vice think, we've our that going I both line project top that commerce And time. for related we're and are same that e-commerce with compete that and sense. versa, that of or doesn't ability a OMS the so us. advantage the working I efforts that at times, a on for to in make coordinated the makes a is sure past often to And to ton done us, for found we of to work then an OMS an deploy be A e-commerce big adjacent It's work. position more lot think those interfere in very project expansion platform, opportunities, but a have to vice there's platform the

there's are right a on other are We're offerings even bit lower focused or end help is area. plenty to enterprise market. are there client the SMB market long-term successful seeing, the we it IBM opportunity potentially on little more exploring same Sterling of the of OMS probably e-commerce think the still to for in some platforms. Sterling, deploy. market right there, the meaningful, necessarily that in platform relationships And And target nice that to now those But the the our the oriented While one expand not then could of side. the as really They the on after seeing project side platform. projects that pressure the are help we deployment, we're I we're projects on be might Sterling a to about the continue now things opportunity the

carries the we managed do, client us services it the signing just potential as deployed. kind same a that managed with platform evidenced So help them operate that this to agreement platforms us once by the commerce it's launched of for services

Ryan MacDonald

maybe RetailConnect about over within about creates to operation, that I on X-day competitive And time? Amazon for become the the shipping tailwind talked just Recently, PFS you to that if more can Amazon may. talk could solutions then Amazon moving for if try Prime, a or it one brands with impact to have

Mike Willoughby


distribution rapidly BXB leverage to CloudPick for talking retailers stores. thank cost-effectively think replenish very service omnichannel many you think to they to also their do, pressure solutions already that's larger raises to within, them exactly level. to implement help that that So use I about is they're And really compete that just warehouse option way regional the I deploy that, centers way announcement inventories that their as an a store because that becomes operating. a with on direct-to-consumer say, what that it retailers to have and serves

or that at So Coast motivate does it us also to probably accelerate West look operation.

be a also to with help increasing two also two-day centers, something delivery from will asking we Coast as locations, us Memphis way. clients expectation, into but our our to we think are which certainly to have to that to to compete desire do in them today doing next-day clients for support the them addition us prepared step their their have, potentially West closer I in that's


queue. time, And I remarks. would are at to closing our this to We'll the like the for conclude no session. now Willoughby Mr. callers turn additional over back there question-and-answer call on

Mike Willoughby

when meantime, phone. conferences, all well. analysts the who very Tom look everyone look you, forward to the of we thank or by our available in investors forward of at if I you August, call And to are And as Lynette. with and Thank report much. I'd one said to upcoming we attended you that quarter speaking like second results today. our Thank we in earlier, I as the see and


does thank This teleconference. you participation. all concludes today's We your for