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PFSWEB (PFSW)

Participants
Sean Mansouri Investor Relations, Gateway
Michael Willoughby President and Chief Executive Officer
Tom Madden Chief Financial Officer and Chief Accounting Officer
Zach Thomann GM PFS
Jim Butler GM LiveArea
George Sutton Craig-Hallum
Kara Anderson B. Riley FBR
Ryan MacDonald Needham
Call transcript
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Operator

Good day, everyone, and thank you for participating in today’s conference call to discuss PFSweb’s Financial Results for the Fourth Quarter and Full Year Ended December 31, 2019.

Joining us today are PFSweb’s CEO, Mike Willoughby; the Company’s CFO, Tom Madden; the General Manager of PFS, Zach Thomann; the General Manager of LiveArea, Jim Butler; 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.

I would now like to turn the call over to Mr. Mansouri for some introductory comments.

Sean Mansouri

you. Thank

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

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

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

Michael Willoughby

lot plate. everyone. afternoon, that Thank and you, Sean, good everyone on has Realize a their

and So time you thank for afternoon. taking joining this us some

business for to oversee. to LiveArea highlights and Thomann We Zach for welcome the that key quarter. the conference operational the this Jim of segments, businesses they to are and present pleased call our going of our review results differently a results for We're bit to Butler leaders PFS, each

for calls to the of follow as Tom's appropriate. Our this prepared will follow financials and remarks we'll continue future format overview

and and high lower closed all first the at as two in LiveArea client had a client to also bookings bookings new PFS XXXX PFS the units, we disappointing XXXX Before clients activities another transition execution half of both unexpected at looking for bankruptcies with despite with turning for quarter great dealt in generating level, in business our Tom, of we a strong level a out of over year in year.

of face several LiveArea Our unit the return created in setbacks, an struggles client we of In as us underperforming second sales initiatives this positioned these exited momentum a we new last year, growth XXXX. for half executed in XXXX for the key in of to XXXX. which and followed period

shift XXXX. First, include in offerings expertise, on our renewed PFS, we level service to PFS led bookings of for industry strategic medium-sized record prospects focus expanded small within to core our targeting a and This our businesses. and

In the merchandise has and addition XXXX, multichannel fulfillment to business of potential brands, portfolio. Charlie to This our Charlotte in vertical result services merchandise box, focus retailers disengaging Russe online failures big brands services along and from focus, unexpected our core risk believe client We retailers. from while Charming manufacturers, PFS from bankruptcy client general general disruption focus to on we retailers. eliminated by effort retail this and that reduces continued the multiyear our exits high with branded on

year in leads, bookings. of rapidly new focused client in simultaneous to generation engagement, improvements focus undersized inside strategy marketing a on which multi-pronged executive all the the and brought sales we percentage field leadership, high new LiveArea, half lead revamped and go-to-market for sales has of to sales, back our rebuilt approach, in LiveArea led Second, and sales new alliances marketing, pipeline. This generate on strategic improvements that leadership, material sales our

to now as apparent client our sales brought capture clients designed LiveArea his budget within on our delivery recruiting, time work impact we team Jim on service to his and increase and as industry. in as quality course, and the talent a in in growth of XXXX. level new LiveArea Butler focused the on the strategic competitors, high product demand services, are build and been our Jim partners delivering for team high rapid well momentum company, and has return that energy enhancements and to and to on prospects, of high management, immediately have and optimism this

we and our on efforts Between the to LiveArea teams And currently a leads. LiveArea and that programs XX promote The the collaborate value driving we include and processes of our quarters. We continuing our our LiveArea to coming joint across taking PFS are now prospects currently our sales base. PFS PFS and end-to-end our and transparency efficient continue and implementing brands strategy team's entire solutions will across more enable go-to-market of both teams have are in believe marketing to full services. XX client communication advantage are improvements

Before Tom? Tom our commenting to the turn call I'd and on for provide XXXX. over to details outlook like further, to financials more

Tom Madden

And Thank Mike. you, good afternoon, everyone.

compared For transportation quarter, in to $XX.X transition client primarily decrease the million was related activities. by million, the consolidated The for management period. year the referenced fee driven the fourth two revenue certain our of prior bankruptcies $XX.X was and SFE service earlier equivalent,

compared service the While LiveArea LiveArea fee reflecting our our lower to performance had we quarterly slight quarter some PFS segment, decrease --sorry, technology XX.X% we the revenue we had that of to in services. that also positive The fourth XX.X% to Service due LiveArea million, $XX.X a XXXX compared during primarily revenue year gross was in fulfillment XX.X% momentum was applicable highest margins for fee margin prior service year-over-year business. fee decrease seeing was in the the for and quarter. year to gross was are

note that million to decreases to is $XX to across compared SG&A were XX% PFS, We and PFS and decrease gross with related primarily sales the generated quarter, for million to just the XX% focus with for LiveArea in The increases for to LiveArea. be the or due compared to of $X.X in of a I XXXX XXXX. It prior costs offset XX% SFE QX range to December EBITDA expected shared in guidance and of spend to adjusted areas. our and $X.X discussed. gross We lower marketing within margins, continue lower the occurring revenue cost XX% function. segments year, $X.X decrease million and which quarter, both million margins corporate the for important other services in were able was savings

Turning of to debt the an cash debt debt December in total at XX, cash XXXX $XX.X improvement leases results was December million. This XX, and from $XX.X XXXX. equivalent balance our sheet, $XX.X net million, $XX.X position at and position approximately a of million million net excluding totaled operating

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

control. outside of the is benefit So there's away utilizing transition variability on always that the one quarter-by-quarter service year We decrease from basis XXXX, expect currently this component of do due calendar a some our cash flow our of to offering. that our during this our will clients of

in expenditures $X.X December million, a expenditures were of in capital resulting quarter debt. level cash $X.X total approximately million, which and XXXX Our the capital financed through includes

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

XX.X%, adjusted consolidated XXXX margin and compared year. XXXX. last million, annual revenue Service our to million was XX.X% came results, XXXX reviewing $XXX.X $XXX.X $XX.X at fee in $XX.X in to EBITDA for million, gross million to XXXX, compared SFE in Quickly was compared

XXXX, flow as was Net free cash was with levels, for which $X.X year. net cash loss to approximately year calculated to in And even XXXX last year. the of similar level flow capital of in compared was less the the income from reduced calendar million, expenditures, $X.X profitability million relatively million $X.X current XXXX operations,

XXXX outlook. our to on Moving

Based efforts the to back to announced excited our growth our mid in look single-digits XXXX, consolidated in SFE earlier, previously on ahead reiterating are are XXXX we marketing stand XXXX about year. revenue currently Mike for into we we to of business we poised half believe the prior indicated success of both growth we where high of and sales As the and generate and are as expect segments. guidance compared we

Coupled from the year anniversary end the the expect margin clients we in adjusted clients the PFS costs, that with as results an be in service XXXX concentrated on our to that EBITDA improve two bankruptcy in to generate the Note prior of do expect our traditionally a we and focus new segment with PFS, our fee half we QX is quarter ongoing PFS second growth full from for value also revenues. performance. high seasonally

expect our we could up profitability be revenue in go XXXX ramp than and We service and equivalent XXXX as year. adjusted fee then lower EBITDA QX the QX through activity

year other XXXX to items few calendar A guidance. regarding add

XX% to overall While fee XXXX. we this to end to high range, expect towards in target in XX% the be service of margins we gross range the continue

services always, higher the by services technology our will proportion the versus margin impacted and and related relative project professional product this FaaS activity, work As be offerings. PFS our of infrastructure

continue our XXXX. will in million We in $XX product expect to to we a to decline $XX level of $XX XXXX that from revenue generated million the million

product expected X% to range. gross expected Our be X% revenue margin on is this to the in

related base to cash spend an primarily and in in operating both increase segments. expect XXXX, incremental do We sales, expenses in marketing

million. D&A to of of our between total expense amortization compared expect actual a million million, our range We D&A XXXX decrease $X.X to $X.X including $XX.X expense, intangibles to in

But basis. currently an compensation our stock expected share is expect We in price. expense difficult it predict market on ongoing a due the year-over-year level increase fluctuations in to to

our These to we on fluctuating assess fluctuations due what monitor currency those in to impact are We closely to seeing the rates than financial recent operations. macroeconomic more international rates results. our seen and events, are we and historically, have continue the U.S. between

level we slightly to expense XXXX, Depending expense borrowings XXXX million. For rate to on be expect of debt $X.X relatively interest in to compared maintain would to XXXX. currently of reduced a we interest our expense, fluctuations, stable our average as our compared expect interest

tax improvement to $X.X million anticipated compared level expense do we of in the the in in likely increase expect range. million, expense to XXXX our profitability, million $X.X $X.X With an

walk to turn highlights This in remarks. concludes prepared through PFS. my I'll Zach call operational the Zach? over to

Zach Thomann

Thanks Tom.

various For chance years. to for haven't I PFS I've company XX segment the about years in who four meet been roughly a for roles yet, I’ve had with those and the been leading

the multiple growth, mentioned, unexpected offset challenges to Mike of to XXXX avenues client in responded drive to losses. directly by As we investing the

as We managed in our we excess fulfillment with capacity resulting the centers. dealt costs aggressively our temporary also

with ones helped execute refocus and or goods packaged our unexpected for losses efforts many apparel, untimely, have CPG. the core leading our fulfillment fulfillment, health to we are believe in luxury, e-commerce years. strategic verticals and I client beauty, decision Although and us specialized these jewelry where the we highest potential have and known consumer for collectibles, authority The well fashion as and that

these verticals a and differentiated within brands the simple box for that brown experience often require customers. indicates Not a experience Our unique fulfillment experience.

you if I example, ability products brand's our your beauty type For price receiving scalable is experience and strongly of a against expect goods, to and provide and identity. proven authentic are at gives relatively that us selling is when we fulfillment competition. our experience ensure their a high-touch the expensive maximized believe to luxury certain the customers point, edge

in omnichannel noting not our churn to our provide vertical of branded experiences these of targeting in capacity order core services, we does a of as excess each and which customer all overhead. that clients our have across management, fraud these result non-fulfillment physical services, ability to payment, the customer impacts cash includes in more care our customer always It's Further, areas service high-touch including worth point and differentiator for flexibility client is that order for execution, for touch enablement. our management, all

services our is increasing priorities. sales non-fulfillment top our addressable vertical market one for market XXXX, expansion In of with

enough to On businesses. include house. addressable and XXXX, of set to services lifecycle we engage be they often in These to high market, in in that potential and the medium are more topic early SMBs of broader in handled not willing addressable market are may small a began expand their our sized already

maintaining worth also of elevate SMBs productized growth customer and that to are a a stage, increases which that rapid indicates great typically these motivation more offering, cost leads for effective and launches. experience quick e-commerce noting experience. packaged in handle to It's their operations while many their are SMBs looking which scale Our to

growth, As them. enable we with help their grow we

compares in another we or with of PFS combined QX is to a continues and strong Between initiatives, million in quarter for bookings of which annual signed year generated to total to call. next several in quarter. to announce we on bookings as the in to in our in which million these in contract $X.X new ago estimated for that level PFS QX PFS for three two bookings important million engagements of $X XXXX $XX.X booked ACV, This company our we brings history. compares value plan update XXXX strong the pipeline deals $XX.X with be ACV, highest million The ACV

advantage also We and more become particularly UK new have quarter good the Brexit seeing region brought momentum are Europe, on from the personnel in as the in defined. ramifications the and benefits to during currently from may year. to We expect fourth execute of and the opportunities the a present. refined strategy We sales Brexit take these in European investments later the sales see UK growth

bookings client a we expected engagement. the for be plan As indicator can from a the annual useful PFS generate revenue reminder, to

taking are with or some a there about that full to engagements timing months taking multiple for place if ramp others get year brands engagement. full up, to the However, to the and run six can in more rate annual vary

As long-term sticky translate annual is contract despite PFS of contract typical in one the the total engagement of of benefits our variances. and the primary business value value nature client always, the way can year-to-year

executing While important we're To to very given obviously revenue. pleased units client clients, XX holiday we important generated our we clients, have $XXX give we season for another experienced, of more perspective million which successfully PFS bookings another our a over in shift about holiday, in time quarter were volume is serve. million the we the the QX, of solid even more shipped proud on for kind than of verticals very some

transactions customer averted contracts that XXX,XXX estimated We our saved an customers fraud and million. XXX,XXX $XX made also

us several strong have growth or and a in are my up engagements planned helping to prepared call, engagements launches on for XXXX, in which I'm client us pushed now in comments, XXXX. substantially the setting mentioned Wrapping pleased to XXXX. Mike into from return these last progress, already XXXX launched delayed up report

LiveArea’s to for over an I'll now call overview pass Jim? Jim the of operations.

Jim Butler

the pleasure Great. as Thanks, join to good for leader. first call the Zach. And new this afternoon, It's everyone. LiveArea a time

agency company of experience As I digital strategic of LiveArea. leading high a providers a My digital XXXX, knowledge global was earlier, company Roundarch, direct following and June Isobar U.S., full LiveArea the including how has with into most capabilities and very scale leadership organizations Mike experience similar space, performance predecessor recent roles, its various years and digital commerce mentioned XX relevant in joined the in grow service with the service to me global of service like equipped company. which global to services over

provided at and that direct experience digital efforts my with Additionally, me to Intersection omnichannel smart city is consulting together digital elevating focus on physical which commerce. practice insight critical LiveArea’s brought transformation environment, into so

experiences, with team business and approached in acquisitions great When organic and and me spark untapped the growth, and believe proposition, saw on this. of services client that create grow industry. business and potential. exceptional alliances a immense the was value a kept opportunity, that assembled Mike digital this PFS in like best really especially sales, unique leadership the focus business his missing secret Mike I with the Through strategic With capabilities professional to have end-to-end for digital I services the in a But a marketing Mike initially bones. required LiveArea business combination with was

interactions several employer to our leaders as had elevated marketing commerce. into the turn as calculated a The day worked extensive and proven including a clear to I partner that started, began the with and program I secret from we in with leaders inspired that sales high-performance a executive I leader team was preferred we to and provider, past. my in network, rearchitect and join create best mission excited Mike's our to space team kept execute

to momentum carry into is bookings total positive and the another LiveArea. mission in downward sales for critical strongest despite create that results LiveArea the typically for the The yet upward the history immediately quarter sales in trajectory sales bookings, during XXXX XXXX, reverse back the in and of in momentum quarter revenue to selling slow half of most were grow quarter we as generated quarter a returning evident business for was setting almost third QX the record what stage XXXX. Our producing the LiveArea

Please Moving two types of on results. we LiveArea. remember report different to for bookings

can have of current and and consist clients. of in work which new vary specific are for related revenues we tied scope project First, length, projects bookings, to to expected one-time

We also expected have contracts consists engagement of bookings, to which to basis on and current revenues provide new clients. services related recurring new for a

and contractual of Engagements indicators the length. leading easily regardless revenue at contract consistent have extend have revenue and have initial contracts or the types both believe revenue characteristics, recurring service initial an these and in future predictable helpful gross contract term more year sometime one contract and initial three are to often fee are stream. that LiveArea, For a term is generally can contract. allowing years bookings client I margin term, terms of of least

projects booked we in they compares a the to million for ago value. project XX then estimated where in XX project This year estimated combined $XX.X QX, quarter, a For million projects with combined value. $X

combined a LiveArea the earnings away discussed far We ACV also million million which estimated best X.X annual XX ago then ACV in on contract value record booked is QX million bookings combined XXXX, combined quarter. in which by The history, This ACV. performance for LiveArea compares in worth or call. of the engagements last performance QX was in set engagements year $XX.X estimated blowing work the was $X.X $XX.X a XX and for million, in to

So, let's with start projects.

million, estimated and compares volume booked to bookings XXXX. company of project the XXX year, the XXX million $XX.X For in estimated an worth then which projects, $XX.X

$XX.X estimated XX ACV estimated in brings plus compared bookings, an Turning to estimated LiveArea estimated to XXXX. $XX.X million in for engagements This totaled to engagements, then to in XXXX in in total XXXX. and compares then $XX.X project XXXX XXXX million bookings of our million ACV, which in engagements million $XX.X then LiveArea $XX XX million for engagement ACV, and

was a of lot numbers. that Now,

But XXXX. the LiveArea long our caps tracking strongest PFS year since in company and back bookings off and short is LiveArea of that the this began bookings quarter separately

and on go-to-market are and to XXXX. sales marketing buoyed the pipeline very revamping strong we the team. are by investments the over put of the strong reflect six the we early results our record in happy foundation we've QX we momentum of and report Our last and into build new generated work our XXXX we've and into had have I'm months sales and developed to and success QX carrying determined during momentum approach

Wrapping up XXXX my inflow last pretty on over discussed the and sales Build past in the sales six quarters, pipeline returning created focus leadership for With during is couple team prepared comments, previously, the my is for XXXX new goal as months my core bookings, the of growth momentum LiveArea to simple. our to driving business. prepared of soaring XXXX. I'm few to extending of a and ensure objectives and we new

start we growing our while remain the Let's LiveArea team must to and hiring. top pipeline. support retain -- business, talent our sales is to new members adding people our with a

of Over regions great the the been second have past to six throughout in nutrition half growing in all made months, consistently I'm the and year. that we've reversing headcount report happy progress

to services. sales so hires, our recruiting all eliminate ensure add team many key choice for We team, thoroughly our and for retention to to we growing tools have our marketing to and with are roadblocks great excited operations, new capture any the employer about and programs delivery of employee continued demand evaluating the to our being resources service sales,

focused for to making to how projects. deliver In and hiring, my look addition on on keenly sure scope improve I'm continue ways we we focus to

to engagements the grow. we manage of our to and we’re in management time we budget services effort, ensure project which part deliver As and way and to on office, continue projects changes we on this exploring as

while do contracting Lastly, same -- our it with in templates, company do processes protect great business us, legal making that the this the area progress we the have at we is better ensuring we that from time risk. easier clients revamping made our for to and

continue elevated There's by to call relationships least not elevating for differentiate through the big insights. and conversation. strategic our something I opportunity a in is but LiveArea Last market thinking to client

and of to I'm are is pre Our proposition unique in our the addressing value of and benefit end-to-end, worth through practice. the strategy end-to-end for a are insight and consulting that from post-click the knowledge. opportunity this our scale. about with commerce that the capabilities. Zach, of I'm and noting elevate conversations here hungry because of global clients which reasons end-to-end is In This excited one It's we’re primary on experience unique, relaunch using the ones our knowledge partnership and clients delivering experience, truly

the our honoring in and and for own to to site as BXB AVA As -- expect were branding XXXX gold Last two reported well global our the as implemented would Digital five digital we accomplish we Personalizer our LiveArea shoe thrilled live strategy. excellence platinum the for category work we example, to Jibbitz Award Crocs do. see for to objectives, and the recognized LiveArea I month the popular awards designed brand, we and platinum creativity achieve

With it Mike? that turn report, Mike. I'll to over back positive

Michael Willoughby

for team. you all to Jim. of of on here. this welcome of you're Thank call the glad once on We're our behalf again, stakeholders, and the audience our benefit And

both in Worth store of we call a touch the and reviews customers that store successfully positive shop during Dallas-Fort the store year, store the challenges is our on two throughout we store working the personally engagement shop from fulfillment season. Before for for busiest their the Metroplex and and available local holiday fourth This made our the moving CloudPick. RetailConnect portion completed RetailConnect entire quarter personnel solve introduced solution products artisan store effectively to artisan retailers. I their season. our benefited in cost to want pilot or question-and-answer coming And with with designed holiday our the into last pilot first and FaaS area fulfillment-as-a-service in customers in for the

to the roll and Metroplex stores. RetailConnect three intends Our area out other engagement pilot asked has extend to beyond the holidays to client

for our for market about RetailConnect, avenues we XXXX. are sales two think to there As strategy

to is solution and where management order omnichannel first The capabilities clients tuck platform. if is our we minimal already processes, their have the easily our disruption already that particularly and target that existing identify client with in PFS utilizing LiveArea to can

and avenues, is avenue among to work with second client our from The Through which others partners store forward targets new we've are for Adobe prospects active both hope Shopify, would to forward. identify to that to closed technology to already market Amazon, look will updates our as RetailConnect. several in discussions sharing We including solution. in identified and sales benefit we lead we move this initiative

for update identify work customers as remain we As to CloudPick, the our actively similar that did and continue quarterly model. position we to on pilot pricing a final given in last We QX and is production a a generally for time most off-limits solutions. year sell to active the as typical for installing center of technology distribution it's the new PCs most time not

will we product in said, XXXX. of continue the development That our and promotion

in Pcdata Modex CloudPick the conference handling our week with this at Atlanta. promote to collaborating partner technology trade fact, material show In and we're

we've fielding impacts several imagine might on business. of our regarding the you questions As been COVID-XX from investors

our directly and made converting various First, and adjustments business by those meetings our strategic model we policies, forums, groups move with we virtual corporate and and to we've toward meetings. peers operating a vendors, external sincere working extending internal I user this virtual to by the But already various of thoughts as clients, arrangements, adjusting as and work all to remote further to through and convey novel outbreak want prayers people partners coronavirus. our tragic impacted collaborate with travel

also to sales adjust continue marketing tactics virtual or are as We our canceled and events. to converted conferences

own the no global discernible to While COVID-XX had continue certainly will remains growing to to global our our the has respond situation, date. on to impact operations across and a footprint institute concern, measures our outbreak we

the know, situation uncertain, you and As hourly. remains evolving dynamic very almost

the So accordingly have learn we'll as as today. this we you is as we of best information more, update

the barring conversations resulting from behavior however, pullback buying a Intuitively, sales that could outbreak. online altogether, from broader material shifting indicate seem in spending consumer to consumer benefit

and to large few retailers orders, past free several multichannel from days, promotions over freight and brick move channels. Just their to to have appear follow their their stores announced for and to expect suit and the play will stores mortar more as by which diverting product reasonable away investments designed online sales such and are stores. all retailers multichannel It's emphasize digital digital pure promotional online

RetailConnect, can for also expect accelerate reasonable stores It's in that be of brick like fulfillment deployment many seek so local to used centers delivery. as mortar regional to solution, and and store fulfillment retailers will

XXXX faced clear However, excited given emerging outbreak. That look move growth comments be the we year. difficulty for outcome the we're C-XX transition to that in macroeconomic past call, impact the last broader sort this include we XXXX. the feel in to from in considering great position And very from in obstacles about our predicting at should the return XXXX. throughout We're to we not uncertainties forward to from time, of our does in and guidance moment annual any the the made aside the it

as strong mentioned, on growth Tom year expecting with single-digits we're line, revenue the As high to compared improvement EBITDA to we SFE adjusted last margins. a expand consolidated mid bottom

to with and engage available via our our communicate questions I, As And happy make are and story. Tom exciting and investors answer to we're Jim always, to Zach, phone. now ourselves and happy

Melinda for now we will up question-and-answer. open call the

Operator

Thank you, Fred Instructions]. Sutton come be sir. electronically. The And question-and-answer question Craig-Hallum. will session will with conducted first our [Operator from

George Sutton

and what get the on the rate the And -- Zach impact year my what in question adding should are I call. Tom. you sort ultimate from So be that appreciate It's to of SFE? first want we can look sort XXXX, comparative and think through to we expect challenges of now, detail. of of should year the I from XXXX, we Jim at to retailers last you of would the back just customers of lost growth exiting QX we if just we did get get the first so having helpful

Tom Madden

of I above by would the that impacted bankruptcies the the or the since provided, the negatively it effect slightly the year-over-year anniversary I've be carryover think of high is quarter and end end I at event last year. first high range especially from that that

So that be end year at above our exit range the end. high that it we that the expectation would be or of slightly would as high

George Sutton

you saw untapped could, and opportunities. a he And ultimate in strategic in necessarily mentioned of the go-to-market yet? enjoyed opportunity curious, bring Jim, I'm those an I see you bit if to in that terms haven't of two opportunities together, and we what talked we partner you want came you about prepared do things Mike's remarks

Jim Butler

great those -- to delivering on Yes. -- the an to want the had projects really work was reinforce in the delivering. and they for mean, had was deserved saw I the they getting I the markets, were a degree they credit was that just organization people in I working what weren't brands, market large unrecognized great with that

competitors of competitors not definitely in so, projects can that those into offering, team brings the not They're many end-to-end, working where bring. our only differentiators the think in a provide that know time engagements just end-to-end space to have the of right? And -- on post-click all And I've They one long work that things only so been can't on of situations, but and experience. LiveArea an is there's are key is our end-to-end all here And I capability. offering. and one our cases the insights does that those bring we the delivering that

when what though fulfillment about can you. is And what you too think and a on much we buttoned our come post I detail, your us reality to that digital even can the I to entire points to is and needs cohesive collection really understand So, logistics think product with all call gets deliver be the And they the you if there's own to the them understanding click are those data experience experience, experience, purchase is. you place, then they you to about their all experience have operation centers, an when give clients a envision that that, what key your shopping help experience in to us, of experience, think is, returns, if understand that come up. if experience might

opportunity to clients what our needs a unique their we So, to really help have understand experience be.

the talent, me, big for deliver. big, a that was really that products we the say I'd so, draw understand And

seen approach team. I rally And as in and I cry then, the opening, think, to in We expanded we business we’ve for one-team added said growth. momentum the a and this my tremendous really

to watch. it's fantastic been So,

Michael Willoughby

Hey, George, I'll strategic partners mentioned you to that. and add just

and activity really go-to-market strategy the flow. in partners, particularly driving the more influence the the both position funnel, felt like that our that were best we lead we a in strategic to at lot in larger ones we a of changing looked As top the pay really were underinvesting to the we attention

past really, getting paid that various strategic The over really for XX, it made bring a of they to strategic expecting focus that So, results the way that's that the giving to our them the specifically well and early decisions leader was one we deserved from our from see we're to and in attention, partners really for on funnel been that the on is alliances before. seasoned months off six compared where in flow we lead months. XX would up then have attention

Jim Butler

equity. is, definition I'll just partner private of your or also. add one as extended to the to that software what SAP, Salesforce typical a partner such from We've

types across different We businesses of a are to lot partnership of extend model. looking that

a and with see -- that. upside So associated we lot of

Operator

FBR. of from Anderson we'll Next, B. Riley hear Kara

Kara Anderson

all appreciate you hourly, Mike, coronavirus I it's certainly and the commentary that I fluid So understand the and on said. like changing

comment the been recessionary and environment battled perhaps you past can around how spending? consumption in company you've has So contractions in the on Maybe or a while.

Michael Willoughby

look data but of we of you the own situation the seeing. so time, Well, coming you can't necessarily interesting, we're at experience that aspects us. where with match have up of that all all It's some ignore this into moment our the in things for at current are all doesn't of it unparalleled are if kind because this company, we

to have be the in week and responding of you six like but And we same this to some through very so we're to responsive, unpredictable a twists out over holiday that And this. peak that and emergency, company nature period during through five help associated very within responding to we're created us with would that help we we the the operational that company us that. position operating in this in of our us we to unexpected turns weeks, unpredictable manage and we five the other might manage are putting years what's holidays ways of be the hopefully to deployed experience through processes cycle some successful to agile, six to some past or see six the the where will very ways limited to holiday. like and a say tools now next resilience of over do an think help We've we've turning four to

turn correction, to carrying this, decline thing past years continued although point this than velocity in while the the the hope online economic experience since from even sales to you’d maybe I major pace. XXXX, but expect a XX And further over phenomenon guess, closest digital. to extended we of we online sales, XX the impact, if towards grow, pressure of slower increase what probably to trends spending regard not. see rate consumer to could and was would continue overall based maybe potential the XXXX at XXXX, were accelerating you on has to that which we go over the to sales slower our saw that years, even that grow at online downturn, behavior much to, to over I time, doesn't overall year-over-year that it into a if and retail potentially experienced, -- XXXX, on continuing same into retail With the sales but sort I back last I moving

said many stores to into them I and think our I turn the of strength. fulfillment do you’d to centers, role really on initiatives plays pressure right accelerating I think earlier, which brick-and-mortar as see And companies rethinking

also look the to this this here at is So to particular and our opportunities look challenges, see obligation in situation. the but

Kara Anderson

then, Tom, savings I cited you. of That's SG&A? you’ve your in And if helpful. really Thank the in remarks prepared on was wondering expand could you just some

Tom Madden

experiencing occurred this up really were the pool we the the the LiveArea made reduced had comments time. costs year, with align So the resource stream let's we and we side order in and at ended look our that about at better year, that to of that revenue in a we revenue of with earlier kind taking with that reduction in start some kind had of the throughout

up. activity talked revenue about we the seems As be picking now to

do at a unit, support year, especially the in LiveArea we sales in look that of would to increases order some ongoing especially business you So strength. as see see marketing we spend But, part the the there. early to have an in activity our we decreases some try areas, reflect basis in environment, looking just been shared make from reductions standpoint. services to In revenue to the on efficiency year-over-year other primarily decisions

we what identify of working been allowed for areas with the that have well. has business in and corporate think should some I And functional team what segments be order the the what We opportunities align doing. doing versus services should business to -- be better savings areas us cost as shared components to

helpful very been on that's Jim that with well. of So Zach business be components working and to as

Kara Anderson

And for quantify one more the quarter? impact then you the just me. bankruptcy Can client on

Tom Madden

Yes.

two revenue take of the had applicable zero as QX XXXX, scenarios in of year. -- and we it at $X.X million client this look we So, a was to about bankruptcy

Operator

[Operator Instructions].

Ryan to Moving MacDonald Needham. on of

Ryan MacDonald

in of expansion successful nice don't guess that for in PFS, far to activity not What's PFS And or that on year? to every the after guess opportunity use vendors the terms displace tend see are Obviously you so a maybe one net business. to addition focused I opportunities? an like year this is looks competitors. successful season new thus first I other pipeline, holiday seeing be you going to the a

Michael Willoughby

for question. Yes, so the thanks

in one As as providing into I business to our to ever make up the possible clients that vendor. Really comments, sure very prepared to have much ensure our headed for strong opportunity the year service XXXX. choose we a ourselves and holiday objective our another with is through to best mentioned we're clients that open the for possible to customer we as retain as pipeline

to and sell that the head with using as the to track successful successful against as certainly pipeline. having a point, drive But our believe door to team a record points our a your open a allows holiday holidays weak tool very certainly well and of have positioned XXXX for such, certainly potential is sales we And pipeline aggressively our competitors. into we we that team pipeline sales and that's

So their then dramatic. competitors. have a had probably a direct you this Ryan, little interesting we'll were XXXX specific our operations business. that I and certainly went talk competitors where business, retailers to one benefited QX. we color couple house for that to in some we making including anything others the plans about lead comment early where a a in it's very instances a global, few we yet of there like just a specific necessarily a brands in from which that contingency of was for But not situation be had competitors situation on more out us. say be and actually current say really actually of more where bit of for you bit, might downturns in flow of when dramatic that, couple And We're and would larger some weeks seeing to have would situation that trade

are starting that get very brands a could it's for turn calls looking longer conversation. of are So into contingency early, to we while kind from that plans

really So that be could interesting.

Ryan MacDonald

progress the out continued LiveArea of of the business, we terms in lot obviously into see a to then great about look as XXXX, optimism business. Yes, And there.

or you investments. of changes react right this going digital globally now? in Just and their with terms given be e-commerce on the projects transformation there fact lot decisions tend move they modernize type as companies any to are how to that what's these of a about thinking platform tied to seeing Are

Jim Butler

either I'm get So customers investing across always are largely what for seeing the of or our than in OMS, situations not better experiences consistent companies -- example, competition their tied there's that that ensure like are that their I lot effort, doing. technologies is projects is to what a right? to Yes, a transformation is channels really digital think

they to currently seeing happening market. impact projects be currently continue And what our So what's -- the with are -- clients. any the these to we're for -- very strategic not

key our lot Now, of extend last And effort concentrated SAP, just a have And we alliances, the the up commerce is, bring months in or it cloud to into multi-cloud be plus got Salesforce marketing past a thing commerce cloud. of all had solution. lot solutions. over multi-cloud the a or software work other would in whether I made they the several concerted we've a

found what we the really alliances, focused we we deliver clouds need that on working So with is head our of that be of to that through new number expanding on.

of answer we're more So we've in over us transformation larger to nature. to question? are made doing in last months be in concerted that sort increasing in strategic the that more truly digital a Does four your say of front projects the those areas of number effort that allow initiatives

Ryan MacDonald

much for Thank you the very clarification. Yeah. Absolutely.

Zach Thomann

you project And that as you look would size we at data that the provided and has that if and one engagement of actually data Ryan, a see add, the dramatically. you'll the just grown of things is the QX, comment, bookings maybe I do the the for math,

significantly So XXXX up. similar to QX, while of the number projects of is engagement somewhat is value those the

valuable more are we projects, chunkier engagements. projects seeing So valuable and more

Jim Butler

into tactical elevate get conversations it think those us instead larger those being Mike So, have right, we're us But project, to clients trying in right? of really much just of offerings, very to conversations that, of and a allowing on also to add perspective, to go-to-market allowing elevate a they with sort really front which clients, other send with deliver to is initiatives. I to broader

So also. that's think very I helpful

Operator

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

Michael Willoughby

QX you day. earlier, certainly you. I questions Thank and said are given today, are our results forward our answer I, giving I'd and to have everyone that about analysts available Zach via you, first in report released. that especially investors going that and May. may we we the attended phone as Have thank Melinda. Thank our look call the a and really speaking just And all us Jim, we your you time. like great with Tom to And for to Thank results on. the when things

Operator

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

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