Loading...
Docoh

PFSWEB (PFSW)

Participants
Sean Mansouri Investor Relations, Gateway
Michael Willoughby President and Chief Executive Officer
Thomas Madden Chief Financial Officer and Chief Accounting Officer
Ryan MacDonald Needham & Company
Mark Argento Lake Street Capital Markets
Adam Kelsey Craig-Hallum
Kara Anderson B. Riley FBR
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good afternoon, everyone, and thank you for participating in today’s conference call to discuss PFSweb’s Financial Results for the Third Quarter ended September 30, 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 Advisor Sean Mansouri with Gateway Investor Relations.

Following the 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

Sean Mansouri

Thank you, Ashlyn.

our further, like guidance, this I following go estimate, forward-looking we Before would anticipate, words forward-looking non-GAAP identify the are project forward-looking statements. harbor The than Investors facts in to used metrics believe, All relating certain and statements. other as similar to The remarks intend, the forward-looking to statements. statements and target, statement. can call statements typically PFSweb in presentation well will, expressions disclaimer as conference expect, in historical are confidence, safe concerning this the be filings make other used full website found under of section

as will XX, morning. through for provided call redistribution, I’d also expressed be replay website of available available XXXX release link at this without the Eastern is like available November on to written press rebroadcast as A in way, a.m. Company’s webcast call, prohibited. be in strictly or this XX:XX retransmission will PFSweb, replay everyone the well any today’s the Any consent starting pfsweb.com. at of remind via this

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

Michael Willoughby

Happy Singles Day.

changes We and leadership sales during we at PFS are our have the last continue our over to the a strategy clients revamp in to made execute and bearing third additionally, LiveArea high for level investments quarter. year marketing And fruit. the

exceptionally existing bookings. client generated business and an LiveArea quarter strong new of Our

bookings we QX separately strongest project this PFS and our leadership quarter begin segment the tracking enhanced was in through executive since of LiveArea engagement sales in In total XXXX. fact, of and LiveArea of marketing the this support booking and

sized vertical were bookings medium expansion expertise and include core service industry also our segment our small PFS offerings strong, and to businesses. focus of by on renewed driven Our

in level strongest this typically on focus new projects in this as years new quarter current seen opposed the coming wins generally not year. of of these have to of the to one noteworthy, in the bookings year, for execution, PFS late this ever timing we bookings Our holiday as pace QX segment. season LiveArea PFS have of wins on as The especially and keep us is prospects

combining XXXX. bookings with When confidence of record exceptionally level we we bookings for PFS have quarter XXXX good along in the of in our growth in segments returning believe in and both visibility to strong LiveArea,

in roll about for we as next Hopefully what you excited we tell, ensure executing we anticipated are e-commerce to get contracts previously to get a That live year there. holiday on very XXXX, of can we're waiting XXXX control pushed growth our as re-prioritizing prospects some will until some and solution. out after a go the to of continue in their XXXX can result objectives, own and signed PFS into seeing said, new clients out

did of unexpected we margin revenue. related transportation Additionally, some lower have transition

strength to we a in our result, down that is the partially offset bit, is for a being but guidance are come going revenue XXXX As segment just by SFE PFS seeing LiveArea.

consistent we And for in adjusted and return to continue net, to net SFE a both with XXXX growth our consolidated for we revenue is outlook quarter last EBITDA. expectations So expect set the XXXX

for further, for year more the provide the Tom? coming this on and and Tom turn details Before like to for I'd to over next. outlook call to quarter financials our

Thomas Madden

morning, you, Mike, Thank and good everyone.

XX.X XX.X year consolidated quarter, revenue the third the compared revenue SFE period. prior to in our million million, For or fee equivalent service was

in the year, LiveArea, integration wins. and decline new two expected project the by earlier driven by loss offset to system of activity the bankruptcies partially client client PFS With revenue related reduced in

margins proportion gross by higher of we the with mix and services. XX.X%, also gross experience client was increased lower the to in was margin The transportation decrease compared as driven prior quarter XX.X% LiveArea certain decrease had cost year continue incremental projects. revenue labor margin and as a the fulfillment on fee declining in primarily to to we segment, Service due PFS

to XX.X and of related September as decrease year. million in EBITDA was XXXX the SG&A adjusted XXXX. the in well costs. cost standpoint, margin and generated and impacts, quarter, as million of aforementioned spend, X.X were compared million, lower to QX decrease X.X million for we a X.X incremental an The From compared the to prior gross PFS expected facility primarily revenue SFE sales due marketing quarter,

equivalents million, At resulting balance totaled X.X a cash XX, of XX.X This position net compares approximately at net debt in million. favorable XX.X September cash million XXXX, operating total to leases and XX.X of and excluding to December debt of a Turning XX, million, million. sheet. debt, XXXX, a the XX.X was reduction position

quarter, for current XX is a With in fourth XX my would our remaining expectation to as net exit year. resulting level closer net XXXX, a million this cash in outlook financial debt our that we use of to million we see fiscal

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

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

year-to-date X.X financed level capital cash were the in resulting approximately X.X through in expenditures September of debt. and million, including expenditures capital a Our million, quarter

is expenditure X in new capital client and XXXX the which our of activity. million, expect to be between We related million majority to spend X

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

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

range by margin two for gross Note the bankruptcies revenue of still gross primarily lower an client margin fee of primarily increased year this down SFE we this high result revenue. our driven decline service a The as was with operated earlier of that slightly, segment. business margin mix end targeted toward

to an underutilized and related costs primarily costs. segment facility operating increase personnel increased PFS related experienced The in due costs, direct

result million year X.X million, in As for the decreased and contribution prior a these of segment to cost compared revenue the PFS to direct impacts, the X.X quarter.

gross project in offset on to generated client service the margin client year. partially XX.X fee XX.X LiveArea gross XX.X as revenue reductions revenue service decline XX.X%. certain with in million is margin third with compares as of quarter technology million the of the to last of services due well a new transitions, fee The segment. to revenue Now service by third This LiveArea wins. quarter primarily and LiveArea in activity fee

the costs. revenue offset gross as can. applicable costs, year, costs, X.X was managing by which decrease expected to we in The margin lower than prior gross direct in we as projects, lower incremental certain The a primarily LiveArea was focus our million labor expenses efficiently as decline incurred client higher margin approximately as is on operating as by versus well

direct result LiveArea was the net a compared the business the the X.X as contribution in of to of As X.X million year. above, million prior

these declines, year-over-year than just a results expected and While are we show three in of reflect ago they LiveArea for the strengthening months what back business year. stronger half LiveArea

XXXX on Moving our outlook. to

million. between SFE continue to earlier, XXX mentioned and to be revenue XXXX we Mike million XXX expect As

XX million We adjusted expect be and XX to our to million. range continue between EBITDA

activity, XXXX, was million clients net, revenue some By to our million, million. a fee as XX which outwork segment this of outlook XXX of we well which million segment expect as of for between as XXX XXX XX are same. and a million, and to performance XX to we projects equivalent of consolidated strong And to compares our the service to transition LiveArea, few net at XXXX XX previous million raising now previously the Again, result as result range pushing remains transportation in guidance unexpected million. lower for however, XXX a PFS's related to margin targeted

As in SFE compared about where look Mike stand excited marketing ahead we success poised into business of both revenue mid improve second we sales adjusted the results ongoing and value we the on for client of Based the margin indicated this to digits bankruptcy of full we new expect Coupled earlier, our with Note in growth once which consolidated costs, expect of from generate as to half segments. we we our expect growth efforts, we to we high-single EBITDA we performance. and believe anniversary clients are that activity. to currently growth our to prior concentrated generate be on two an the the XXXX, do XXXX XXXX. also are focus

remarks I'll concludes turn my and Mike. the This to prepared back Mike? over call

Michael Willoughby

Tom. you, Thank

ago booked ACV. estimated This in Now quarter. LiveArea, X XX the compares engagements value combined contract stats for jumping quarter. worth million a In in or to X.X combined we annual nine worth year a million engagements estimated then ACV our right into an sales the

And value. worth We combined X for also where XX ago an XX year this to in combined projects million project the projects a quarter, in million XX.X compares estimated project value. they in estimated booked

bookings almost the our bookings which personnel our of success in this $XX LiveArea. and earlier, strongest was approach to began mentioned reflects performance PFS addition I million since of early work have bookings put re-architect LiveArea sales the quarter investment new LiveArea separately, in tracking we we and go-to-market As and our leadership of and

over a benefit the the shift to next a as this with opposed and level cycle to the project of holidays. be year. sales at turning hope further off appears more what prospects of seeing We looking course also during bookings our from in are we to our believe I seasonality around maintain cycle, the year

as see SMB partners the recent the year deliver the projects Agency recognizes sized of experiences on new Magento This world-class agency that businesses XXXX our continue innovative partner small validating plus collaboration recently the verticals solutions LiveArea, strong power named annual magenta strategy. upon to building Big our were look the momentum utilize We Shopify to these to a in award well acknowledges Partner forward with as strength medium client Further the around their or as merchants we to awards. success new to BigCommerce, the of platforms in Adobe reception ecommerce with Commerce contest and our core provide that we online from across world. and

bookings XXXX. be on record for the pace Now a PFS segment. year moving on in PFS to to continue

for quarter, and the been with ACV, Even in pipeline booked ago client as our new estimated core strong year Companies businesses, inclined can attractive us. entry be shown result medium engagements present making as to very we X.X place We've very quarter. four believe more success changes which growth maintain small million to converting of verticals in combined the a have During that well an sales, the point capabilities. a PFS we focused new move set a compares are to previous in to opportunities. PFS sales within continue targeting as sized zero worth on we dynamic quickly as bookings for outgrow their transformations as take of this of and size and businesses, they resistance their less they which

We as also expect with this as diversification, more companies profiles. to be opposed to room may growth we further sign size, client have mature large but in that to our lower improve grow ample clients

in that a we disappointed to and impacting While with we few new their and back are of remain of wins naturally performance pushing XXXX the large PFS, projects encouraged in year. our the clients are XXXX half pipeline the our

encouraged we That in remain PFS in our XXXX. growth said, accelerating we year forward this with look and to performance

their will pick-up with FaaS a Touching for artisan for holiday include the edition for service in-store their shop pilot a site in and season, two store locations. with Dallas-Fort launching are store on few which local that across This from updates RetailConnect our shipped integration initiative. as a of and the allow a capabilities Worth fulfillment we Shopify area, or Dallas

followed out picking pack a sorting take tech-driven store a the the by will of to operations, pickup associates process for within first efficiency, system increase in-store RetailConnect. customers. pilot and of that This be streamline our will unique edition And will advantage experience

and updating next to So, results feedback early forward we year. the client look you on

centers. for solid sales XX% As compared holiday year’s fewer shopping we a PFS growth holiday our more the creates Christmas have generally with sales macro set between labor online last This holiday will this growth, between actually compared to prepare more of online reports terms Thanksgiving and condensed, XXXX. to clients temporary backdrop distribution calling But XX%, year. most in for and forecasting be hiring holiday upcoming days season, are slightly our industry we simplified as up to at

during personnel ramp to across forward and high various executing important again begun time a centers for this we look year. the already technology level once have at clients to our very and We distribution our of

LiveArea some returning to we very headwinds grow. faced moving forward and for As XXXX, plan much we’re looking to this of past PFS the both year we in

even stronger and than quarter, segments with have has more call the a ever before. wins across the last we position detailed amount on today As visibility us new both put of in

more return top new that in to operating segment in and is our and and high established in We success, exposure growth quickly in leadership a core strategy growth line our go-to-market foundation SMB retail our for finding our to brick stability improved and both LiveArea, verticals. have less PFS recalibrated mortar exposure bottom to the the clients the The are on have team with place.

As always, are with Tom answer our our questions and engage and to exciting I investors communicate happy to story.

We will of and available not, month you if the next by we but to phone. LD always some can at make be Micro Conference there, see hope ourselves

the questions. Ashlyn, will call now open we for

Operator

line is question of Thank from Ryan & our Please MacDonald your go Company. you. [Operator take ahead, open. Instructions] Needham We’ll first now

Ryan MacDonald

much later specifically Are expect it than questions. I the up running in next the first third great expecting typically year quarter, see are to the holiday bookings for on or to those we segment, you obviously, in and morning, XXXX? the obviously my PFS good see. guess Yeah, Tom. that the four taking for engagements customers are bookings was for Thanks Mike to these and season get

Michael Willoughby

for Good this year, question. you’re see bookings. morning, the And is we typically the much would of in right. This Thanks Ryan. level later then

we In QX any fact, of bookings recorded back and QX go year. really XXXX in wouldn’t to if that XXXX, you either or have

is So, unprecedented. of certainly this kind

that into there. XXXX. booked be of one that revenue regard We there’s are contributing is move most we engagements the and so to as some contributing wins QX of question, larger QX, With now going your in have do the in live to

Although would if of you that most XXXX. be look at that number, revenue contributing in

Ryan MacDonald

BXB the business, some about of see Excellent. And made talk the terms you were bookings. e-commerce? improvements guess I of as BXC with of in that they are And that terms within at there’s look to made? in that really are the trending changes of in LiveArea organization there great versus how what’s then resonating mix Could the being you bookings, clear terms

Michael Willoughby

the around sales fewer then in of the couldn’t as than feeling the as in drove we’ve the cycle getting to like the in been regard order we that to as most over with a really we successful. have LiveArea just to we weren’t many past, issues think opportunities, sales we sales top we is funnel I the lucrative. as the through that felt on we more So, be selective cycle had be observations be wanted as as issues the needed making [indiscernible] we where funnel, And year the as like were with taking opportunities that being

with downward of So pressures margin of a creates spiral just that as things lot complexity bit gross that and experience little a other associated and a are that. you

out for fair our coming then, within the than lot really And of that to strategic that we they sure best make come with in, So, engaging inherited. were that told leads leads the trying that that as has through those the use our accountability focused of team At received make the story was share partners convert. they to actively sure we and sales of same sales our being pipeline make really funnel our time, best more doing the a on simultaneously very very to to the a channels. instituting move of team were that

is think my you ship and very And from the may just I as was rudder. that quickly. our team positive you we so, LiveArea improvement. it that. on can it large a had could in to that it all results processes can also right but reflect most Probably that and that ship And you the place, see we business of the expect getting those seen quickly, leadership think referred past place QX thing partners. with turn have feeling if areas leads I’ve that have I go And you turn a business in other calls, can that’s that the seen very a remember impactful a positive better is And in It’s The quickly. the more turn agile much towards and QX direction you quickly. direction just in

team is half taking it back in the next in momentum very so focused generating of into And growth on the all turning this year the we’re and that year.

saw to know BXC, with BXB much that we of in And then regard that and necessarily don’t a I change dynamic.

BXB. Most are I continues BXB that caught Some to in BXB projects of definitely real activity are of longer. I the our in engagements. continue to was future, of the the little are still some bit the help larger, bookings project that using Those project actually in to But will for sales platforms the a to BXB. on cycle this we percentage e-commerce still still see lengthy that primarily and clients quarter spur the continue that is BXC and weight engagements do because we haven’t some e-commerce, saw see more think traction think lighter traction marketplace. be

are we’re larger, having so, seeing to evaluate expensive the clients platforms. And more

platforms those cloud with commerce even mature, capabilities. a sales smaller Magento BXB As BXB force such or these as

we’ll think up opportunities. I see maybe BXB pace far the pick as as

Ryan MacDonald

Thanks. holiday Great. with the luck Good season.

Michael Willoughby

Thanks, Ryan. Appreciate it.

Operator

Argento Markets. our from We’ll Lake Street next Capital Please go your take line Mark now open. is question ahead, of

Mark Argento

morning, good guys. Hi,

terms more the of get this OBS quick these there terms in Just the a guys environment? political push being know little a environment, follow-up the got –it’s from business. conservative, the getting you aggressive Anything the terms actually pricing are you just to launches one of could ’XX, in incremental on of sales of new the but going out side. What’s are with the – couple calendar just or of I ‘XX on those LiveArea then in economic relationships warehouse, that? some given given later in bookings from new I the great coming side elaborate Thanks. guys to in the little more is And management. out, a bookings, on see what there LiveArea

Michael Willoughby

Thanks morning, Good Mark. for the question.

push engagements, So, client with LiveArea you’re the regard outs, were right engagement not PFS engagement. initially to those

early QX have there in QX, we contribution that anticipated some those some. not deals engagements either in were lot, couple we or but QX. been where a late expected a So, size meaningful would there launching of And

a for the each launch just so, in coming the risk the looked And of criteria, as middle they perspective in to QX situations, or in instead QX that were into wanted those and of part internal at we from QX. client of timeline whatever other decided

that it side had nothing so And was them. ability to really things to launch their on were with and do our

And so, timing it’s just a really issue.

So, we’ll QX. expect as those expected early to launch in

LiveArea, the then with there any on market to change order of to regards activities to, in fire kind sale of to around a in isn’t not our We’ve strategy sort And gone I the encourage to increase think pricing. in engage. people with,

BXB opposite. the the in would and a I have retail, them. fact, health success just been job down has better to past leveraged really the core do fashion, presenting to particularly of these successful track little success story and In we the very have our quickly where that several and end categories verticals say high business great content fashion, different doubled The beauty around already we have it’s demonstrated that and prospects on we stories a bit of specialty those and record converting

we’re very team and the think too and in the felt and that thin that partnerships partnerships and come our the very quickly year. I level opportunity. cases, for made going difference And second and the next intensity different fairly to looked really half the we strategic partnerships the across within quickly who sales strategic partners. is to engagement with can them sure like being of launch as reassess that convert came we platform place difference to in many sales funnel has into win that too opportunities know the projects e-commerce that ourselves in notably spreading realized a us far reps early that on these deals worked have is generating first in how partners and changed then help most that are, has in we know we were make that as hard almost made had at we of The thing to variety our we new of And

job is lot then sure The just a And I that team the with last And and knows that of big those what lot than earlier, prior need excitement. pipeline hit pipeline. accountability team. they thing, the operations accountability is focusing attitude And every a what together your week. I basic think that inherited and within positive difference of to making sales number and the create mentioned or sales the a that a doing in everybody things is of be come on makes big life single have to to successful in all they and a momentum difference sales. And makes better

win, a think you to find If you’re to most make that way likely, you’re likely going to happen.

So, the those things direction are and in on what’s is we’re business that excited super LiveArea about headed. going

Mark Argento

services, Thanks one a you. of I are? that color mentioned had was there those for just services you’re Transportation providing. a the us you those one some services kind little shift for a in of you on And kind Tom, give of color Could what think there, then, Mike. quick

Thomas Madden

transportation the kind fulfillment freight of related activity, end It’s Sure. those related the components. back to

type So, activity. margin generally low

a on profitability the bigger has on side it impact So than side. revenue the

Michael Willoughby

a we as little more with little line would Since with there we like than it through, is top freight, associated pass can’t bit Tom true classify just bottom. said which as of margin has a a also a typically it, impact but

comfortable our We’re for most come us the is with course of happy we guidance, the factor important financial that metrics. LiveArea at on which in to that high into in bottom EBITDA look a for margin us gross as a position really compensate to those see puts end LiveArea revenues feel helping as specifically to

Mark Argento

Thanks, guys.

Michael Willoughby

you, Mark. Thank

Operator

next of Please go ahead. our George Sutton question from take now We’ll Craig-Hallum.

open. Your line is

Adam Kelsey

on recent of Mike, deploying year? LiveArea I is my you This morning. Jim the made changes some joined. can know Butler color good Hey, color some helpful some taking to you the if provided on for questions. over term It’s and Adam since you’re really on for going initiatives be these provide George. long already Thanks next

Michael Willoughby

Sure. Adam. Good question. Thanks,

just conducted for time our So, now the is we’ve LiveArea week, sales which that kickoff last we actually interestingly meeting first had.

that waiting in we Typically, January in came done the need half Many to things kickoff initiatives leadership change next get said, are are team going in the November. XXXX, create sales be has want there organized successful. well of the into have to of the XXXX. several that and early for the team the those that Our advance until the year. year really we’re things things continue, momentum back kickoff this because in we’re in the sales to to talk and ourselves new bringing But to and going about out we year will coming

the announcement award. that Adobe we recent success gives really some and have This for reflected intend there for seen with the our to an our we that of and the some big do us. there’s us encouragement platform capitalize year, of We’ve strategic been practices acquisition to certainly Specifically, have BigCommerce that. in – really SAP can we But of as that with expand with opportunities looking appreciate instance. success seen sales Magento Adobe, we’re and smaller on by partnerships force Magento

huge such post-click the where that experience that sides what they of leverage the shop company. certain and with of an to a that and if capitalize can have that from the where to overall to the and in the services clue much digital one combined so to the to We in go-to-market be collect the differentiator are looking in can differentiate to and or LiveArea go engagement, where believes that and sales And we a great is year side great decisions the with not are converted their focus believe into seen them position leads what them really especially have view experience on position this on, our within side value to XXXX the businesses that that goes we’re help us into are for differentiator really an both clients we value fulfillment through the post-click our through PFS have to themes businesses highest we opportunity and data in sites typical point, going data to is grow of of is there’s to plus size side. actively certain and much journey. digital transitions And better your to on in point success which for for with LiveArea the on as post-click the the in a consultancy at LiveArea we’ve payments the And position proposition that in The third really buyers on and even occurs then that. the doesn’t and over agency things leadership the cycle as sales the that the order PFS. marketing happens in customer is to kickoff end-to-end ways what of huge believe the management on meeting bundle and platform have to It’s happening fact and side verticals people insight returns. team a was help serves a

provide team the customer and data mapped around the so, And segments, the and has across at have services, we data repository that bring that journey services associated to with are strategic all into opportunities looking that that.

the that thing but just important higher engagements host business. a would carry back now for is XXXX. a the rate And half ones I projects continue the of services that into to XXXX, the as managed ones, momentum and are that say at grow and we’re generating big other most are we those win There to

Adam Kelsey

sounds combined Is that comments, your by a assumption? just And you. Thank deals Great. in pipeline. you’re more the fair like expecting

Michael Willoughby

growth tried businesses That their assembled PFS small growth. this with them to a manufacturers. in year of we’re manufacturers quickly starting versus CPG just good management retarget is other sales really capabilities good and solution around to we’ve order historically and of tax we’ve helps package high experience with end-to-end the assumption. seen on the And very often targeted technology transitioning retail issues we’ve our to CPG the and no Especially efforts are may internal fulfilment. lot services and for mid-sized have and and to feels over in platform PFS that done move And CPG a targeting past they’re great and some area couple really just is opportunity joint seeing us. into but lot SMB a planning years, It into in a there side and manufacturers category, are internal and power really XXXX. there’s fair solve operational running we’ve success to have account really success together whatever our them the where like then the LiveArea problems they

Adam Kelsey

then And one follow-up. final Great.

Just in pilot going in but anything as service, is have XXXX, looking expect you I you term? the terms for else at there that a the fulfillment occur know to of again one near

Michael Willoughby

make good CloudPick for brought commit conducted of just So, would a this to the that and solution of a we’re Connect to had to configurations of final volumes market kind pilots we and sales Connect. have footprints time we’ve Retail to got them the be decision holiday for ran we and running production deploy CloudPick, so different year. step Retail next the putting, for be making the that holiday client will hoping frankly, really different for implementation sure entire a solution, and XXXX ready. RetailConnect We commitment then that to deploys a production through that market that before to store expected both we clients CloudPick out were year, in is the project and the and pilot in solution We’ll during for verbal is

through complications feel the a in like its world the of a So, holiday put to have position take and chance respond to it system to and paces real to any be out will market. had we coming

cycle and support, that that support, in have, Retail is and store distribution right which the et good sale environment, as So, most the call about field news delivered both for ready in we’re of hope talk taking a to in multiple billing, And products have as both focus packaging solution support the market Connect some in we that with to, next products client to a be to into CloudPick, sure sort for to and about the products, there is the environment a next early but market clients that it the far really move to and commitments operational and, into room a, to make we’re solution through March a in of cetera. position steps both moving to in wrap-up need happen that super that that the excited in I technical expect productization appropriate, can QX going ongoing our XXXX. will step be is the for stock

Adam Kelsey

Great. Thank you.

Michael Willoughby

you. Thank Welcome.

Operator

[Operator Instructions] from We FBR. will Riley now take our Anderson ahead. next B. Kara Please go question of

Your is open. line

Kara Anderson

some kind just prior I wanted good on to follow-up of morning. Hi, of questions. the

has offering seeing said – First on commerce you clients you’re and this some that changed and the end strength full of and number point? at

Michael Willoughby

or of the clients the in production number in of prospects number The pipeline?

Kara Anderson

In production.

Michael Willoughby

you. that get Yes, and try have back number, look with I don’t Kara. the to into I’ll exact

at a brands of year, and look small exact a net handful boarded don’t year seen deals that you on the I If in on clients last we this we’ve would end-to-end count. have the increase we but solution, the then that the deals have want

you. that that back to So, get I and get can

Kara Anderson

And then your relative portfolio of provide SMB, I you that on business color, guess the the any size overall to can today?

Michael Willoughby

look be although way, that at and haven’t the good a would taken segmented a necessarily them that So, revenues exercise. we

is are and bets starting that, to but say So, running engaging, at some business There we’re it’s with sales. and they’re typically. side, has what back the next color who at the would in take and looking looking been year into and theme we that normally more appropriate, business looking PFS of some is the established brands zero business and internal and on growing side that, it’s on just of mid-size starting headwinds we���re their an the and And health you’ve that have where about that’s and the look infrastructure number a is those an of way, at if exciting. their actually a start-up come technology PFS him excited million SMB, have them a part on problems we we associated stuff for actually and certain that’s a that processes, to is smaller at say, got, take feel because this if growing beauty celebrity really kind note we’re solve revenues established see level. point, are out you brands as really I really help just can operations with like, grow, of can with issues that the somebody and $XX backed We five and better call. M with starts that’s between we’re SMB brand those by

been, opportunities in that some LiveArea strategies or platform us a we’re very successful. a side it, mix to with re-platform the them board, On need on are either I more the established businesses the help that large the there across be back think, are very are half, e-commerce of there’s and that seeing to

as account where BigCommerce disengaged are them SMB and as platforms platform there helping we of grow. somebody, being we kind So, some with like we’re Magento, engaging of are or of help – from and the – these models on them moving some, then the opportunities

larger from side is, a certainly brand, say majority even is pipeline and brand on almost manufacturer. largest on PFS company the owned lot CPG year, the revenue is of mid-size like a would by the it if I number is the large LiveArea in opportunities the a component I side, of all, pipeline by our companies, So, coming the the think, this of that the

if can it, characterize that’s you with provide next more would the how to we So, but answer look we’ll I a call. see on objective

Kara Anderson

you or one, the a the from I wanted Would SG&A then margin levered, gross mean, margin part in the just you’re next revenue revenue expecting on see XXXX, if I to basis expansion is, of question growth XXX decline possible wondering it’s on similar second outlook. And helpful. more margin it then of contraction year? XXXX fee a function about your is about bigger really margin to a last point That’s it. and similar ask a improvement service expect the digit Got

Thomas Madden

gross with terms stronger mix is that a in of and gross generating as year and business do add on both on total somewhat for segments towards growth expectation higher also side, margin on in be gross an the terms of of slightly now So, right that XXXX, take gross consolidated business. because the a for standpoint in either I we margin next of possibility improved in in overall margin. look or performance I the the that the business should side, look higher the margin have the LiveArea head mix My a expectation

leverage We strong support control as line business to and various should some SG&A obtain and at also of kind throughout well the hopefully, we’re segments. costs cost our focus and able continue the in business

Kara Anderson

of on comments expectations? think And expand sort how that any growth revenue quickly mid-sizing, can digit on you margins you single

Thomas Madden

would expect be the year. I the think we trend throughout that to

with is is As and revenue engagement, the said, Tom growth coming pattern the back PFS all LiveArea somewhat loaded, first in. half. stronger Normally, half back especially somewhat the

we’d on, interesting throughout that be quarter, would see through trend to EBITDA the it’ll expect we I go to each So, LiveArea think see on margins the the be, as what especially year. based strengthening impact performance, but

Kara Anderson

All right. Thank you.

Thomas Madden

Thanks, Kara.

Operator

question-and-answer our back to session. Willoughby conclude I’ll turn we call time, this the now for like closing over remarks. At

Michael Willoughby

LD We thank our then, and everyone day. look a we look between talking like we analysts, forward call peak attended may speaking to the holidays, results our opportunity. and and forward Micro fourth quarter full the at on look and morning. the this great next now time opportunities the I’d have report happy you, Conference to we year to it’s investors Have Until with to and forward that Thank Ashlyn. next March. a other great

Operator

Ladies does teleconference. conclude today’s this and gentlemen,

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