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QUOT Quotient Technology

Participants
Stacie Clements Vice President, Investor Relations
Mir Aamir President and Chief Executive Officer
Ron Fior Chief Financial Officer
Steven Boal Executive Chairman
Mark Mahaney RBC Capital Markets
Nat Schindler Bank of America/Merrill Lynch
Ralph Schackart William Blair
Thomas Forte D.A. Davidson
Mark Spencer Wedbush Securities
Call transcript
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Operator

Welcome to the Third Quarter 2017 Quotient Earnings Conference Call.

During the call, all participants will be in a listen-only mode. After the presentation, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded and will be available for replay from the Investor Relations section of Quotient’s website following this call. I will now turn the call over to Stacie Clements, Vice President of Investor Relations. you. Thank Ms. now may begin. you Clements,

Stacie Clements

are you. and website. quarter the to IR call third everyone earnings Thank remarks of call. corporate today’s accompany welcome XXXX to Please our slides the Hello, note our on available on section that

for call remarks. me here today as Ron and and Aamir, President are is and with the Executive our Chairman CFO. Mir questions well Fior, CEO prepared Steven On after available our our and Boal, our

company’s this during our call, will we of full begin, business our consumer that Before statements our pricing and its for new Crisp the media strategies impact, note statements. and as forward-looking projections innovation well year platforms, growth generally. for Mobile forward-looking and fourth you in These regarding app, iQ expectations please hear investments expectations and of platform Retailer and CPG XXXX, as its include company’s our quarter patterns, the expected business the coupon.com mobile

are based team as Forward-looking could performances management to and and this uncertainties time of risks and faith the are materially. and or our on call good actual unknown to statements differ that to of of known belief information cause available subject results a

filed contained can in that press information, could the to impact website. the results that statements, XX-Q August on forward-looking factors and and future will any note deck otherwise. exclude measures adjusted on slide margins posted X, obligation are that, SEC these and financial of basis or about on information Additional a the in exception expenses. our GAAP with With be measures reconciliation Mir. Please XXXX. information We financial today’s turn call the as today today update release over revenues, of events a to discussed whether the the company’s factors with result of to A potentially Report and identified new can non-GAAP Form Quarterly on on have and issued results the operating risk net found in release loss, non-GAAP press in our gross in I found financial been be certain now expenses, disclaim

Mir Aamir

and Stacie everyone. you, welcome Thank

our Before to Michelle, and working of I in deep technology currently with industry Directors. McKenna-Doyle to is who the to begin, would digital CIO of media the NFL, welcome forward Board Michelle we like brings I her. expertise look and

was increase guidance. represented iQ the year media XX% over Total of and last growth Now we XX% platform. XX% period year-over-year. had delivering of and strong last above our last of same Revenue by promotions XX% guidance over year on quarter, from a XX% within over our and quarter year revenue from $XX last XX% Revenue an media million $XX.X the million, Adjusted EBITDA our to range. Retailer revenue. revenue fueled total grew data-driven grew year increased from or

primarily performance few increased consistent year year. is in strong the factors. driven with have by we second this what media we XX% in in Total growth double-digit two to $XXX quarters Our that the of exciting transactions last expected over million half said past

U.S. XX% powered retailer savings adoption, sharper of more and circulars, now programs million Retailers XX% power, households. dollars Retailer weekly drive which marketing media of occur number digital coupon digital continued companies iQ increasing iQ from more of of shoppers the First, e-mails, number offline rose Retailer consumer digital through packaged paperless we registered on Digital supply to a of programs of most stands the or $XX to which second, social channels. goods continue transactions, for shoppers growing and by at on The year-over-year. other personalized coupons through shift demand digital to programs coupons. than total increased mobile than

significant drive to retailers enabled network and technology growth. Our sales

XX% an spends increase for Our their sales. Retailer average per if X $X,XXX iQ average programs. $XXX from every perspective, put year, in seen shoppers of increase about generate shoppers in the in who digital million million shopper this join sales the retailers partners platform, an then To have on on

millions revenue savings programs, active digital experiencing data-driven urgency shoppers retail to Foods, CPG and experimenting this positive sale sales. also to their transactions It in coupons This no volume works engaged. competitive accomplished Fourth, strategy shoppers revenue coupon QX on digital groceries it and and today’s increasing XXX% we an large to pricing that in experiments. offline environment, ship Three, of has one, the Two, a entire knowing efforts platform. activation available it before, discounts, enabled demonstrated promotion cost sell coming most accomplishment quickly. For featuring in the brands brands retailers in versus promotion bolster better adds for Amazon the limits a in major with have always brands also marketing greater strategy about volume which to QX. always-on supply that directly where many will are recently benefits, to brands and mentioned from and for coupled their price provides CPG retailers with for CPG an strategy sustained The trends redemption Whole of five, than highly by it supply provided are with $X.XX lower same-store from This in incentive it and digital a adopt of is given coupon in pricing is content because their clip transaction on or of higher from an greater activation. marketing programs seeing shutting is including with more off coupon constraints or for up month be budget it results retailers these low simply, combined, a quarter budgets among links allows Put of retailers personalized This the when helps rather In whereby of in content always-on of example a we have reached. overcome digital brand sense per to pricing we digital. for support thereby sales. available. increased strategies, Shifting coupons. to digital. budgets, an revenue as been ROI-based keeps mix QX, rates CPGs calculated promotion are associated we now with ROI-based And with price resulted per back month

objective. fueling the experienced accelerate and more has freestanding of an in Given plan we This offer data business, out to into pricing to further XXXX insert success digital, I driving more well. primarily to shoppers leads all which CPGs More will we the discuss budget media moment. key have in shift to-date to transactions their is our which which shopper benefit added a instrumental in our as is ROI-based

power model, the industry. the revenue an additional we our on platform CPGs transformation fee Retailer We becomes this As per average, the Based return transaction as should Such than the and tied data, efforts to Xx promotional example enabled accelerate iQ, the ROI-based their brand many which an we to-date back are a transition from personalize on CPGs move of digital drive efficiently. believe believe brands as more to irrelevant offer in innovative having a calculated target our analysis, to evident is is pricing is are to ability step Overall, and through offline speed confident of on essential metric. to of channels. marketing QX. dollars Again, sales promotional to offline to another sales. digital our results and look why profitable spend higher spend the we

past through savings of distributed clients. $X.XX $X over across spent $X.X value QX the our network years quarter, X CPG’s third jumped billion of billion, about in In our number We in last this example, average savings by this to transformation. discount to XX% building of enable coupon. scale the increase that we XXXX, platform funded assuming an For almost CPG per

from shift are redemption early coupons, opportunity is XX% with of We plenty occurring ahead. in still there offline of the still

Now, to shoppers turning media, driven in amounts we to targeted vast that used and on coupons. year deliver last QX ads primarily grew XX% over propriety revenue of data by

or our shopper Crisp iQ, already gone marketing the importance are on our marketing that offline shopping capabilities been shopper adding is tremendous. realizing and is shoppers the drive recently to QMX results their to well As being to been to we momentum. digital media platform, clipping the been can lead includes CPG analytics now further and these that This gaining target now target. growth quarters, an XX integrations in in we by consumers CPG’s and with to transformation And Retailer sales. calls we have portion shopper coupon sales. an due special spend CPGs CPGs ads Quotient believe we over online. vast can has of XXXX positioned shopper brand verified of these marketing, – will enhanced by impact have list. acquired primarily like enable audience with advertising the shoppers a very influence effectiveness retailer spent advertising of are mobile of brand capabilities action campaigns critical that evidenced grow budgets the as $XX to mentioned billion are well and call QX. in in-store and measure this large and specific by to and integration clients and to budgets data capability channels. to A behavior media sales data, of million The in have spent and can we better in-store their need measure brands growing accelerated in estimated our driving buyers the It synergies. digital almost a where purchases as with We digital amount is mobile through still has profitable in large terms The we building target capabilities by launched datasets coupon we With the Mobile. This prior of who

and new occurring that and focused gained vision team retail also ago which is a even on XX% Quotient’s several in into have we data challenging, are with on traditional rapid grocery the across years of grocery industry. and environment still brands embarked is competitive. Today’s stores, This paradigm enabled terrific coming The in mobile. driving is by CPG We their we operate or to foundation is a pickup. and must and with consumers. a stores of shoppers influence network, the relationship In more technology life we sales have a transformation physical sales at CPGs can can fully to technology or online creating smart whether delivery brands retailers This partner in-store and a platform as store buy in digital millions CPG had from strong retailers. is technology for critical digital now commerce home quarter as which for further ourselves established place summary, direct key retailers remain

building one, drive Going adoption I outlined of shopper Number on our priorities the forward, we opportunities; three, analytics expanding through the iQ; few will continue promotions; last distribution revenue. data and marketing four, to digital growing focus and on Retailer to media in shopper quarters. leveraging two,

us a large in have we opportunity in front of and our are strategy. We confident

laid data-driven over to solutions. platform our The CPGs accelerates. have Ron. has as the will sales for industry It’s and an pace for are retailers I reaping the now us from of turn the We and foundation time the scaled digital call benefit growth. and exciting the

Ron Fior

fees $XX.X Driven a half a charge of in GAAP distribution quarter in escrow $X.X acceleration GAAP primarily Mir of you, up over loss GAAP loss value a escrow stock-based and in costs, and of ERP was one-time of contingent from year-over-year. XXXX XXXX. value everyone. of third up welcome the consideration. costs, was EBITDA, a due restructuring and in to significant revenues net in comp, consideration, QX rate revenue quarter recorded were growth in a XX.X% $XX.X in QX million, excludes million XXXX. implementation promotions, contingent fair third by certain QX Adjusted our acquisition-related charges, shares media Thank of digital in for shares to XXXX. change the is million net We $XX.X certain anticipated first $XX $X.X continued net QX acceleration million, of change related loss which million of The to the QX growth the This and net over recorded fair charge compared million and of XX%

EBITDA cash million generated For over operations, the margin of QX. adjusted first X delivered quarter, in increase In compared the of year to XX.X% we months a XXXX, XX.X% a from $XX.X an significant ago. we

the cash end the at end up $XXX.X of from $XX.X was QX Our short-term and QX. balance million investment million, of

third the XX% growing to balanced growth increased spending increase continue declines revenue $XX last into reflecting over paperless between drive approach Retailer ago in and retail. of offset CPGs QX from on a specialty XX% to area a and We total partially compared a by year million $XX.X print revenues, quarter, the digital Revenue data-driven a coupons execution came and in grew focus In year at generated. business, from from demand year our digital operational investments core last digital XX% revenue iQ, increase and revenue the revenue million, key Drilling through our media strong million, QX represented platform efficiencies. promotions was from a reflecting on $XX.X down from our of are dollars and media, up XX% XX% ours.

$XXX Let’s third XX% in last a was Promotion per up transactions last which of transactions model mix digital from a customer that year at period up XX% quarter. same for look and calculated ago Digital transaction third at from paperless and Total larger a Retailer XX% ago, reflection year print the quarter are million, gives transactions grew prices iQ transactions. while a quarter commitments were the volumes. from primarily in the spend and from tiered higher XX% year. lower pricing declined $X.XX, approximately revenue primarily

our QX of and than more For doubled grew their customers as XX XXX% to revenue paperless top promotion of XXXX. over their revenues CPG compared year-over-year digital proportion example,

well Mir remain with on platform brands revenue received ROI-based our EBITDA. mentioned earlier, pricing. very more on spend larger pricing generating volume-based As creating our customers for We from supply drove our coupon while focused were the increased tests several necessary demand increased to and and growing

and in reflected XXXX, P&L, the gross of This was in media. in change which to quarter XX.X% compares QX margin the and impacted GAAP third-party mix negatively and a in increased continuing third costs one-time Moving was XX.X% related margin on and QX this the in $X.X previously. excludes assets, to with of by of growth changes to charges, gross Operating of gross a at XX.X% was year last of distribution came described margin, certain and stock-based restructuring fees. function intangible which from million charge QX expense, XX.X%. mix of This XXXX product associated a primarily prepaid and expenses. acquired Non-GAAP amortization down the in of compensation quarter I was

escrowed million year. consideration. and was QX $XX.X in third in of contingent compensation, Adjusted $XX.X over the of up charge value and in a EBITDA of last intangible combination and XX% quarter’s margin adjusted quarter compares QX million, the change year’s full marketing EBITDA, level expenses. reflecting over GAAP increased certain of is of the ahead the million, a percentage of XX% net operating and noted in as restructuring third XX% driven were expenses in operating XX% hiring escrowed Crisp quarter’s nicely QX last amortization assets, significant by representing which to XX% in This and XX% $XX was guidance a of a In consideration, in in down the XXXX, while from second level, were implementation QX revenues and were in of delayed of absorbing a and the exclude costs value quarter earlier, expenses. This last This to operating a and and $XX.X shares of non-GAAP acquisition-related of quarter, revenues leverage quarter due our quarter QX overall for of XXXX, our margin lower primarily than spend. the expenses anticipated million distribution quarter, operating For both in million, acquired last stock-based flat terms, improvement XXXX, fees higher primarily QX fair contingent Non-GAAP from for costs XXXX. shares of costs, change relatively and ERP fair in recorded certain last one-time charge. $XX charge

to we improving efficiencies. with and approach digital our operational evolves, business between focus balanced continuing revenue As a and growth on in margins EBIT continue promotions media and investments

Let’s now about talk guidance.

quarter For we million to $XX range the of XXXX, expect in the fourth million. be $XX to revenue

$XX of million million. We $XX the expect range in to adjusted to be EBITDA

We flat expect be over stock-based approximately to QX. compensation

guidance full million a the XX% margin million translates XXXX of for to million solid over of increase in full midpoint. growth of of the into XX% revenue, or this XXXX the or EBITDA year translates to at XX%. the XXXX, a the range range million approximately $XX.X revenue into For $XXX $XX.X Adjusted probably year XX% $XXX to

We and driving through building channels. engage growth and digital will have and margins in continue improving tightly towards continued for front as shareholder expenses the We balance while us between of reach believe we large to opportunity CPGs managing retailers shoppers value. a

questions. for call the open now will Operator? We

Operator

Thank you.

comes of is question the Mark, first Your from Mark Markets. RBC line with line Mahaney open. your Capital

Mark Mahaney

Thanks.

retailers Secondly, retailers had up please. guidance. guidance, the for versus three questions like update guidance implied and what marketing of the but of looks on on the revenue it platform? your terms Any quarter you your your on Let down me before, platform try EBITDA took took the December in number you

useful volume So, think that Are forward your model is down Thanks. there that per transaction about get you That to promotions it area of that, mix how get you and you that talk of where could more that have occurred? latter maybe may a how think think And not going large as you continue would third should more do sustain metric could to want point, do you $X.XX – just that to more said, go – or just the why then aggressive new talk deals? about that in? going or shifts an and investments revenue level about forwards? we about areas be why the as Amir, I

Mir Aamir

one. third number take retailers on then talk take I you guidance the can one the first Sure. about the and the I Ron will will of and

we XX is of about same. last that number about talked that time number were the retailers the So, implemented

almost everybody there sort quarter mentioned, up and implemented, of are had few one. happening the that few to in banners remains there to retailers we we are implemented, coming of certain of be max that anticipated we As

about In XX. number Ron? terms of XX now time is marketing, we talked that last

Ron Fior

side, that that’s the are we actually beat the the actually out EBITDA this marketing in going thing is in some had moved through so so EBITDA as we particular to QX. On quarter, happening there flow in expenses

you estimate why but just down the so to our total And a EBITDA to full hasn’t at quarter that’s’ from really want quarter quarter if quarter. year you changed, it, look if for straight it’s

Mir Aamir

going modeling predict. per then on to on it’s question promo Mark And third your hard transaction revenue forward,

I think be especially mix then of quarter the the the accentuated thought this lower what and we would the we out said the and end to last be time why about $X.XX. was that’s metric came that in of on pretty end towards was quarter calculated

move going to imputed Going but range, this and forward, per and we how per an forward think transaction, we ROI-based more expect more can the our the are to promo activation someone growth if – to at revenue pricing, going objective. if you I do I think in to as business is way that’s this really are be look looking at we is real revenue

Mark Mahaney

could look engagement rolling – it is experiment is Does budget tell early willing about ROI-based in the that generating is out have of the an if had more tool, retailer to clients on to customer to out? allocate what to effective satisfaction it like how this more I you that is too or you one pricing, become customer been it like can to big follow-up it roll clear And how that its say have satisfaction you like you.

Mir Aamir

too not it’s Yes, early.

a point benefits for put e-mails more it increasing, does have time seen lead merchandising that than learnt to was of that – starts month, to shoppers, more available the love the the it and does towards much it and the clients of we for and three lead running more on all coupon and good to had right, end for we outlined that budget then flywheel always-on quarter where it I the fact, and feature and really, earlier the In run weekly happening and consumer circulars really what’s faster. talked strategy it limit the out I important. and much it’s been Right love not faster month so behind of the it, the has about is always-on available it, been has in month. whole shifting clips demand in they so brands and that a month number are the the that whole for for out in has budget their and always-on, they coupon now, more that’s spins retailers And being satisfaction it

We are this. about very, very excited

Mark Mahaney

Thank you, you, Mir. Ron. Thank

Operator

with is comes Your next line Lynch. from America/Merrill question Schindler Nat, the Bank Nat line of open. your of

Nat Schindler

Yes.

to that least this already were assume, that they Just follow-up bit looking on own cost assume calculating at a is when calculations redemptions were get how at, coupon ROI-based little into pricing looking in ROI-based and their actually I actually hands someone’s were used. that doing a always I CBGs it the much at of pricing, for was they them

it there certainty significant would redemption printed higher and would true between is case? printed would why is a of rates this the on something higher change difference I that paperless, type redemption has So, been not assume intent the Also, really that much there just – there economics change any it or model effectively else rate. been home a home Is the be that the Is and new that really it always a to much? has is any retailers? is or the per action cost

Mir Aamir

many bit said right. ago good had a and around nicely, rates which were, but can redemption that paperless part years. earlier mention quarters print will address print, rates than one first time and is then that’s the here, your on for are question are that I but thing, on growing redemption – chime that will of has so about I in because me the at talk several Steven lower growing paperless Let a been And then we and

redemption and time. it print over started, it when lower fact, grew rates In had

and makes great, but sense forecast the always it of So, for which have we ROI-based math question And Well, is, after pricing doing which been the to backwards, part is why life, that clients. lot said is factory. yes, been didn’t a that, is earlier have us also they for just coming our doing it your CPGs that of – had of the answer me let supportive budgeting as the the directly can fee and at which to help them you it to they like ties an the that certain it forecast. amount the and this it discount just altogether. and us This by more does. give outcome, makes to to they much helps always-on something. said it put manage give And add they consumers it together you have and Steven, want budget strategy

StevenBoal

Yes, I just want to certainty. punctuate the point on

you So transaction what similar just it’s know model, e-commerce you like per and it in where an on allowable is here. have very a basis, got

publishers. So, to certainty as model the important network and the CPGs think to flow the think us yield, yields that’s buyer. through about us across our of we allow yields on to focus about really allows our and all and and network because to way This

quarter past Now, for at several we really and clearly, over step about up quarters the several results have the experimented by we we this very, talking by this very quarter been were volume impressive. step quarters have ramping and it the step where and is been high

is going and the the publishers, the around the an around benefit certainty their always-on retailers through think way so And all I strategy and CPGs to ecosystem, the from merchandising the budgets. everybody

Nat Schindler

It’s from kind of advertiser Mir, the CPA and has versus the industries. the one of CPG across the reasons dominated Steven risk most models of on balance network. the why really

with really we gallon take this you with or get $X.XX. could – say model ROI-based value just won’t or pricing that either. it’s low, say infinite you a it’s going and clicked the comically not pass where So, are would Would it, transaction and Tide, consumers we at worth it, really not inventory not coupon you you savings take get if on – and to say be if do it but Tide the are you it’s buy from to on just this is any to this again even you you, a would under puts you have going anything a would a you out

Mir Aamir

Yes.

any generally one specific being one brand, client about without So or speaking…

Nat Schindler

That sorry. was example

Mir Aamir

the and per this the when at not system are that, in clients all ROI should on And assume across brands just same revenue same, rate nobody estimates or now across we would we Not example the all such same. that across per assume our are is redemption talk brands particular we not but not call or company. and that so be should optimize the about scale that delivery, the platform

So, offer to reject like platform an question your the is the answer would that.

Nat Schindler

into being just of doing where seen why freight dominant easier you it the to it haven’t Okay. be separate call question pricing more to have who more last that obviously hands that biggest is falling paying as the On a it on volume-based back customer? gone more get if of full you or the are the style going customers call old digital, from small X that’s are all digital $X.XX in the as it’s to even years, to pricing $X.XXX assuming less your pricing, customers would

Mir Aamir

growing. to start spent just and customers rate. move are in that they So, have historically move small they it customers accelerated also so start much It’s the offline and larger that online to

give two put you isn’t in said pieces to those any by the color to the are which will what I right, price seeing that this of more customers. information last is are we result to seeing. the We we quarter. effect of of This similar reductions

a is per In transaction quite XXXX flat. three mix this our take bit, you has last their XX whose increased at but year and top CPGs revenue quarter if fact essentially XXXX three quarter year if you look

now because so This already have there in pricing. volume-based ROI-based growing on they benefited much should, that are are already imagine that’s volume more. pricing ROI growing brands of They pricing now as is can you many from getting they but of better So, because and the ROI-based those pricing. of

the catching historically lot up, behind them other did are bit Now, and a are of FSI. they but never CPGs

question growing. to also but for a shift not are they them it’s So, budget,

really it’s mix now. for this shift So, happening

Nat Schindler

Yes, you. great. Thank

Ron Fior

in the their the Yes, of than comment in XX proportion just in have than the from side. my that the top I made promotion the actually CPGs have doubled proportion remarks they revenues more that more their doubled piece digital revenue was

Operator

next Your with is Schackart line comes Ralph of your Ralph, from Blair. open. William the line question

Ralph Schackart

if this of period off growth it see from a Good impact sustained picture know ROI or little model A and/or and kicking I between a maybe revenue had revenue the where to second CPGs will movement that growth when what transactions questions the the an that we the growth just of to it in promotions then bit about was could continue afternoon. couple model more the more And transaction expect quarter, and of mix we in on you that because lag just I quarter? curious promotion XX% guess, average the mixed larger new metric growth pricing revenue ROI to to promotion should digital talked be changes bigger to could. sort gap either or rate? the percent with close of continue the

StevenBoal

back and Steve question. Mir take is part part I to let me excellent the and for an second It’s revert This will the then question. first the of

represents promotions if to of at promotions percent the decline business, our revenue of non-CPG revenue that’s specialty retail and specifically this the X% and point. you revenue, on right purpose, So I that’s at than that about less now, our talked continues look which

promotions growth revenue CPG the XX%. north is of so And

the vast of see the same the the growth And promotions and another quarter revenue align CPG two is will probably revenue promotions or with revenue quarters, of grows the promotions will that in transaction so lines to two, you start along growing. the revenue majority

north XX%. of it’s So, now

a question. good it’s So,

Mir Aamir

the declines revenue the on effect on first about, transaction Ralph, was a of was redemption promo primarily that revenues/specially talked basis. one, and the because your revenue per their bit transactions other calculated it we a mix And are declining

of coupons sort great actually of CPGs. some and grown those That their through accentuated happened on September, large pricing a ROI-based a was is decline the through the volumes on brands mathematical a right, of by mix lot in the has there but this, and the including and but their So, only of then mix continued the brands had volume impact largest primary way, pricing ROI-based September. the revenues the larger so great a continue in of CPGs what was because we much had had could August back-to-school the by volumes impact revenue we delivery that brands,

accentuated that last the towards shift quarter. part mix this quarter, of effect this So, part the especially

Ralph Schackart

I saw impact factors sort of materially. first we if year driving move occurred this sort also remember the sort this quarter quarter? of the just of QX that different of in last the could, last time more metric is there metrics in there down One also time occurred a Was also seasonal I some was or third that

Mir Aamir

spend. good a that it we about similarity something it’s because accentuated talking that CPGs you I only year, had sense in is in There is similar of last also to the like how big recall that which This so now budget bit year if back-to-school the September, was happened.

Steven Boal

Yes.

pretty high like scale lot see just growth per the question, original volume something at volume because revenue transaction like and me to step would growth rate the rather growth I effect. growth, look and mix and the promotions fueled transaction of you back transaction Let add, it’s at is of significant depression if look volume you growth imputed and if things inline versus a back transaction your by back-to-school. that revenue But the

So, giving just first promotions the for which the along transaction objective time, here transaction in growth. revenue did we growth the north volumes the with saw growth of clearly And you the actually QX. that And revenue XX%. CPG the volume revenue you is and have is grow knowledge then

the place. are those alignment two You things starting see to take of

Ralph Schackart

Great.

future in some point off out, aligned in sort of XXXX, at guess of comment? Just sort transaction CPG we that tie you laid in growth on the more a previous I growth Steven see and perhaps with should that the

Steven Boal

Correct.

Ralph Schackart

Thank Alright. you. Okay.

Steven Boal

you. Thank

Operator

D.A. comes your Thomas, with of open. from line the is Thomas Forte Davidson. question line next Your

ThomasForte

for my Thanks question. Great. taking

So, couple of things.

mentioned you digital Thank beneficial of to pricing seeing think of then get were the seeing as power in that start have efficacy that those off, with response we you? and or at that and Foods you that the And also $X.XX you pricing you First would you. over the retailers would a should two? extent couponing to you and seeing a promotional then more promotional promotional, of a beneficial time way are work least be get that floor react are couponing in to to digital CPGs more also Whole Amazon

Mir Aamir

Sure.

Let me one. the first tackle

targeted said we strategies about I more few retailers about laid to for We strategies. is effect of Whole who foundation relationship a clarify enable more and digital store what where on, especially online frankly media past retailers CPG an what CPGs I into quarters actually sales. online home or promotions, digital that that buy and is target or or not drive that to get – especially component get digital digital sales getting in-store Amazon online, targeted pickup key to have too, to use the with – relationship influenced to millions that with get and just something convert can to they And urgency among So, in and CPG so buy XX% to and influenced – and Foods the leverage to the more the delivery the talked digital interaction was shoppers commerce is just them consumers said in that have in-store, this bit relationship more retailers, shoppers, online by – retailers, sense happened to are more targeted increasing promotional, buy more we data platform loyalty of of before. that and off platforms then digital grocery

of the be going really at a that��s on catalyst to and middle we be effect. the of are So, right the of sort effect at and that excited it

wouldn’t one, say I should consider second as you being about your The floor. question floor, that a a

a to ROI-based oranges. of pegging activation as as I pricing, think turn more number talked sort into we revenue will be apples CPGs about the based and on transaction it just what

revenue, sometime is the year. to way revenue back exactly should growth transaction should year rate important we about growth more look to as think the about time higher think over at that a revenues, and driving I that And think you of right. promotion transaction next rate not rate start maybe half happens, – to of when and probably in promotion next converge sure, growth that rate

ThomasForte

Okay.

if So, one I may. question more

digital? So are toward observing without and applying more going digital the brands all taking you essentially situations inserts they for naming brands, spend freestanding are where that and had XXX%

Mir Aamir

Overall, are it more on paper less is FSI brands spend come to seeing question digital. and we coupons and yes, into answer that the move more

FSI We the into completely are last seeing mentioned Those we were like about as some brands digital few out I in in talked quarters. discussions accelerating. of get the quarter last

those having are discussions. of more We

are We more to those have continuing discussions. of

in were season they planning next year. for Now,

In four and coupon year CPG cutting a that FSI next couple fact, move into us ago budget weeks about to digital. flights one of just large of told

ThomasForte

you. Thank

Mir Aamir

You’re welcome.

Operator

question Securities. from of line next Mark Wedbush your the Your comes line is with Spencer Mark, open.

Mark Spencer

you Yes, take your how Who And wide? in then via hi. Retailer will transition Would is digital couponing overall to Two questions. major long competitors? Valassis think Livonia? industry quick the do that be iQ

Mir Aamir

the perspective, it’s of competitive we share think shift, in it and how range promotion will us the been about taking that have the majority digital. being on long, set. a the is set think from companies So based how dollars system lion’s clients distribution of the industry the for competitive promotion. having something That’s a conversations today. think now The be we competitive offline of looks X-year years is we way are dollars where our the X that generally about of we vast the that about And of out that to with

Mark Spencer

industry consolidation? smaller on in I bought Detroit area? Valassis see of one your comment competitors the Any

Mir Aamir

that. No, I have got no comment on

Operator

for call I to their over back now the And remarks. management turn would closing

Mir Aamir

us everyone the some also Thank D.A. seeing save conferences you. we digital next I more in to at know us forward help joining time shoppers of time today. are there. the we York Davidson drive same want at using This sales to to for week all through and New and let exciting CPGs shopper that you data RBC helping and marketing and look smarter. as for is Thank we an retailers you

Operator

conclude does call. this today’s And

You may now disconnect.