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Enfusion (ENFN)

Participants
Ignatius Njoku Head, IR
Thomas Kim CEO
Steve Dorton CFO
Dylan Becker William Blair
Matthew Kikkert Stifel
Tanika Mehra Bank of America
Gabriela Borges Goldman Sachs
Chris Donat Piper Sandler
James Faucette Morgan Stanley
Call transcript
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Operator

Good afternoon. Thank you for attending today's Enfusion First Quarter Fiscal Year 2022 Earnings Call. My name is Tanya and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for question-and-answer at the end. [Operator Instructions] I would now like to turn the call over to our host Igi Njoku, Head of Investor Relations with Enfusion. ahead. go Please

Ignatius Njoku

Thank you.

those to statements. contain subject or and These risks uncertainties, like you today's to are I'd our and that in Investor remind forward-looking including today in make forward-looking statements available obligation speak may our website. materially in begin, to the Relations forward-looking differ call assume we These may numerous intend company filings from any not the as following today. except Before of with forth and section SEC them Actual results set forward-looking the statements does are statements law. today's we required as update only any call, by

and today's call In found for measures non-GAAP substitute be to not GAAP may financial Kim, Chief These measures. Officer; to earnings release, website. nearest today's call measures. be on the available as include to can addition, GAAP company's over measure Hosting Reconciliation a considered With today's to Officer. Financial Steve should Thomas call press to the and I'd in supplement Thomas that, which as turn a are like the Executive Chief Dorton, is begin. Enfusion's Enfusion's

Thomas Kim

everyone Today to dive our thanks the and join the taking market us. into deeper Igi Thanks quarter results to road our I'm ahead. time highlight to then going for first and opportunity and

executing and the the base focused ahead the adjacent is product investing portfolio expectations, growth, resiliency future our quarter, our the to have a We of addition by model driven envisioned OEMS our winning outline overall have of notably in our said, areas strong. remain company the as management innovation. long-term and first well strategic and new revenues larger our as managers. to that and three The both unchanged of new as global utilizing remain a throughout global business expanding managers on solid adoption we time the of two seven-figure and same client done we all with we and native global cloud of end-to-end Overall, managers, continued managers, institutional around in asset deals upstream institutional delivered the managed enterprise TAM, four across built fund We as our fundamentals markets. business solution becoming broad With and company. the our moving for for same For presence. are all in for fund the journey had so global services expanded hallmarks we we quarter, targeting asset of volatile the execution, experience past, for excellence unlocking and successfully and public offerings,

has returns expect investment profitable delivering to the the and an This revenue our cloud drive clients are industry incremental management We investments had over speedy growth these as return. to generate platform time services. and and already a embrace to our effect amplified continues they and to continue transition

of consistent continue to business our global execution the growth ability strategy. of revenue our strength to to Our high and speaks deliver

through you some in Despite quarter. the the industry, the market, within to our turning capital highlights. continue particularly results, revenue walk fund accelerate volatility attention me we to successfully increasing Now, let in hedge

acknowledge signed I expenses the public moment well benefit non-recurring million as more shareholders grew fourth $X.X a was recognized us. million, want acquisition wins robust with $XXX.X back XXXX. are to million, new the to to fully operating ARR of to XX% quarter expenses operational and take expect to related from higher company growth costs talent existing larger expected year last EBITDA we retention. in of both our the than client as revenue reflecting quarter $XX.X related Adjusted customers. half First that XX% to and of in reflecting customers, new grew we and as seeing

Given In share we will do moment, this our and sentiment walk profitability Steve on expect better. record to detail. expected, with of a additional recent level you track the through this

we're despite and by customer our seeing healthy churn. the a as model and net and existing the products continued services stability retention involuntary exemplified our upselling volatility. XXX% result to additional Turning the dollar of The retention net of of excluding growth, success dollar business durability when demonstrates growth market

continues translated quarter the total We clients client previous continue win it clients business won seeing results. the represent first addition, logo in the as to never diversification demonstrating In expand that investment enterprise said strong ending XXX would. increasingly contract win new regions. excited resilient during The outcome aggregate record strength the is and uniqueness clients. Overall, a and we've all, proud products seen team's I'm in XX of across of more to value quarter wins in services, sales the strong solutions, of industry quarter nicely our accomplishments quarters, the native new to which execution, we ongoing with I'm our to this across quarter, a these our and cloud ability embrace all our management that

one logos made ability On top managers new this larger and last not front within our as adjacencies. as that adjacencies. expand win new of unlock but of progress win share and the to demonstrate well the fund current our call, is further markets institutional to asset also more new into with only We've addition I managers, the priorities markets shared that on

few continuing return investments us our see to we the on made our we're last that profitable strategy addition, is working. during to strong quarters, signaling In

in to company's history, earlier, I signed seven-figure in discussed As for time the quarter. first deals the same our we

asset volatility large These management, all management conversions legacy systems institutional market seeing penetrated and by from conversions. replacing new manager institutional the new the with having also points managers who demand accounting, across And further the institutional market across of fund comprehensive are we're fund enterprise proof managers, solution. to and and four investment launches recent management, provide managers still more portfolio desire we were investment compelling technology both the alternative success large execution which signing a world, wins We end-to-end order further despite systems. strong

fast consistently driven continuing incumbent first providers we display conversions to of we're over In XX% pace client quarter. saw the by in at a systems fact, from wins legacy new as

Finally, an as XX% adoption bookings for total the period. OEMS the acceleration in in the we call, product several are of for earnings the of clients we fundamentals to reasons. our client in OEMS XX.X% stated important Winning accounted business is seeing OEMS to for same prior last suite. bookings incredibly compared

purposely is our it designed First, end-to-end proving solution. out Enfusion

middle, stack. Our technology and office OEMS the solution full back front, supports

the and managers OEMS, With complete offering. of the the adoption accelerating of investment breadth are recognizing depth

are our traders communicating orders OEMS through to selecting increasingly bolstering confident trading solution, ability further mission-critical in technology our by support strategies. stack, Next, our

analytics and is announced mutual sell goal This drive capabilities this referrals. alliance spectrum than designed of significant Northern facilitate Before I let asset wins, by to office mutual strategy thrilled across new together Trust This partnership digital, strategy client to working manager to Enfusion growth as selected the whole technologies that earlier discuss solutions. I'm further goes week. and prospective me to access The alliance data, is and their this to discuss strategy. operational, clients. part of and has trading, market a we of

white-glove mutual Our to service coordinated providing clients. two teams committed to are

coordinated clients joint two from services bespoke benefit across our will Our teams.

moving about several I well in wins and am let in client the XX% client new help year-over-year types. quarter our Now, to me saw that you walk as excited as U.S., we our the through In shift entering progress upstream strength across revenue illustrate and all grew as markets. products

manager was platform equities the announce the was our and looking ability that help a single looking incumbent allowing tech strategies strategies a strategies, partner a and included not ability Africa line efficiencies. a global particularly competitive a fund because capital seeing years announce collaborate, managers to XX-year our East. In share driven position contributor their to with strategies, benefiting They multiple different QX, are global support by was signed in we a fund win as was excited offering, a instability. their A needs array product be credit to pattern to we realize hedging. of market provide multi-manager increasingly truth roadmap. provider to the managers only gaining at to our would pleased as Middle which business OEMS global Simply this trading also evolving I'm of and our times that with a are from fund our into high-touch including wide They In this partnered solutions partner revenue that the dollar The this put, was it beyond demonstrates expand a a cloud with types are investment growth Enfusion firm's trading this feedback, with flexibility record and technology solution. that to quarter, thrilled a and investment front-to-back to with with I'm macro new complex in manager manager of we cost capabilities replacing a new As not to their with OEMS because funds manager. newer replace of fund entered business discussed region of of deal, classes an can to funds impactful. into equities. cloud using flows we're marquee for In impact native patchwork their price quickly global is to time array earlier, but support multibillion it global and asset build flows. it for volatility asset This service. into legacy across investment and Enfusion we enhance and Boston-based supports a a multibillion partnered global a lion's excited business, seven-figure fund seven-figure current we're can instance, investment ideas native single takeaway, a new their bring another to solution variety be large deal OEMS FX agreement macro only life. commodities also that them a The their Enfusion source legacy platform Enfusion when manager a dollar and well that the Enfusion's alongside partnering to incumbent deal trading client demonstrates growth also not across support EMEA, of to but hedge in had macro, excited and unified a debt year-over-year in management diverse in reduce the our continues solicit Further, with which industry and firm macro selected of requirements. footprint as dislocations XX% about strength can with have that where quality during of [ph], I'm of looking and for with support fund for databases be of because we Enfusion of this manager.

product asset ability that managers, of but the breadth depth offering addition, expanded legacy [ph] We're chose of In presence our only their expand we internationally. geographic to shows institutional the Enfusion with announce it fund proud lonely demand to Europe signing Paris-based because not systems. also our in disparate The to overhaul due our to continue them long institutional the Continent of room I'm manager. a manager to asset increasing and Enfusion's allowing presence of this pleased from

we XX% the region new adjacent we continue APAC, to turning Now, success across to by markets. see and as revenue grew

well our an with workflow, income leading back workflows. For in which to By revamp manual front both we their has while to office agreement The real-time. of example, portfolio decided they across its an and technologies consolidated asset real-time all portfolio Chinese disjointed from on limited fund use to improved of manager Enfusion, commercial assets, singular with equities. manages multiple as their management view fixed office access bank platform, outdated ability its partnering into many technology and their benefiting subsidiary and that Enfusion entered as

from now and front, and their regions engagement in but and adjacencies. Finally, and win delivering markets. only These end-to-end Enfusion our their clients. also the replace a administrators strong selected customers unlock on office streamline seeing technology. middle, scale across supports APAC continued across to all back Australian-based technology, our can to Enfusion I'm workflows reflect the track demand new ability fund stories to leading robust and our costs. significantly clients cost-effective reduce strategies This to middle, and adjacent asset excited solutions to announce our new back ability an to fund not region, their our and we're chose office classes front, demonstrates because upstream record move The in of strategy win investment administrator They focus all that our continued delivering

bring solutions solutions. investment of customers roll to native managers. our our products seeing We innovation are new also cloud continue for platform benefit We our to and and out the next-generation end-to-end

fact, frequently front-to-back as allows our and nimble be out platform. releasing In quarter, architecture native as quickly XXX software our the across rolled to and by updates more first than us to features Enfusion us enables products weekly. cloud updates enhancements provide In

to For example, community. our solution based client we foundation This the with management from on evolve clients. is partner continues how portfolio the our feedback to our

released a walk me during just couple enhancements Let the quarter. you the through of many

events, facilities provides First, and facility automation feed processing users global credit our we The term paydown users view compliance with tool, new data with loan enhanced to activity enables processing, update credit and which rules. global holdings ease.

of exotic derivatives as addition, models we such to added pricing swaps. In volatility functions

out we than investment XXX OMES, more experience. effort enhancements in to and the features the rolled streamline constant manager For our

meticulously quicker, art venues. our stack, that swap and which only the and order vendors. partners as as a intuitive point a platform. In operational freedom also first-class IRS risks, our but ways API-driven believe APIs also integrate clients continually our access fueling engineers broader fine-tuned staging ability We're for our to select order for have our data well gives expanding we imagined easy Enfusion reduce clients some to of entry, are and in And allows We rate efficiencies drives interest new to single IRS not deliver the these seamless, execution our technology more transactions in use third-party this, never of with our with to enhancing possible ways. ticket instances,

innovating of improving our the developing Clients services those through our evolve time to experience an extension investments client onboarding. onboarding addition are teams enhancements, operations. They're both client onboardings in informed number the we given off. the client strive do any in off and paying In new continues product support paying of and our we of at can as own to act as quality to client's and

sign-up importantly, because differentiates customer to kind continue It excellent clients and the of is service is seeing with are high-touch impactful. that We Enfusion service. our of more

dynamics to helpful me give would it color how and dynamics be think are I these some also for Enfusion. market you impacting on

are trends the several that well We market seeing bode favorable in for Enfusion.

added inflows the the With quarter hedge the industry of fund the hedge in during industry XXXX. flows seven in first quarter the $XX.X increased despite net years volatility, attracted to largest Intelligence, billion First, market first the of According fund of XXXX.

hedge rates market interest to investors for risks. volatility, higher as this in Given launches rising well and are increase in searching anticipate fund an bodes hedge think opportunities us XXXX. we dynamic We their for

as positioned strength by enabling not them efficiencies. but the capabilities help technological also and of evidenced alpha, volatility, alpha. our continued costs even Second, well period a as focus seek in periods delivering to is in market efficiencies volatility. as become to managers recognizes of profitable. more reduce our investment market during on achieving opportunities of The searching They uniquely for cost only Enfusion to them realize pipeline,

to Next, not the relevant continue the investment as now managers operations consolidation. a only to support systems, but design unified see replace more opportunity have that legacy to consolidation, industry we technologically merge to choose in solutions, more manner behind can more

generating good cloud this solutions. exceeded our conclusion, was a revenue generation in cloud-based solutions. digital management to tailwinds legacy in shift. quarter. targets They next We toward believes continues move this the of to topline early we're end-to-end growth. Finally, it's Enfusion transformation native secular in strong the leader by investment disparate XX% technological market. a that industry seeing innings The also systems In a are driving from

expand EMEA APAC footprint, meaningfully We in international and respectively. XX%, both XX% driving revenue to growth higher by continue and our

our We continue to and execute to on larger to unlocking broader funds TAM. new strategy move upstream adjacent and

all XX% To margin end, partnerships of while meaningful When I'd strategy. have clear develop our of all to clients two up, achieving sight our target continue our accelerate this and years, experience that long-term we innovation also I client our and above require. growth next excellent to that We meeting a three that new the the build position line in to efforts excited commitment over add like in of the and to employees thank as investment about Enfusion software. Their dedication. With wins how unique and we where leader for hard market and to our I'm about momentum solutions, continue to their work management company future. the our going continue this we're in take

to financials. now to me Steve the turn over our call Let discuss

Steve Dorton

us of generated we increase guidance. XXXX first XX% for today. touch begin you operating revenue thank with of total everyone high and and guidance. the expenses, our exceeding year-over-year, the an will Thomas our $XX.X on quarter, joining In first I results, of quarter our end Thanks million, then

We to momentum ongoing to management the platform up move business strong investment cloud. to $XX.X Recurring demand continue to for revenue and continues the see was industry as our year-over-year million. XX%

recurring ARR, annual period to year the $XXX.X XX.X% quarter ago year-over-year our was First from million. revenue up

retention strength our Continued resulted period. ago retention was involuntary adopting end-to-end in products dollar of churn year Net net XXX% XXX% the clients excluding period. dollar churn to ago more year of in the compared including compared XXX% XXX% in involuntary existing to and

in signed quarter As contract the we Thomas value new by demand the aggregate ending new marked the with in in XXX clients. We a stated, quarter, record logos strong saw first total quarter. logo XX wins

per In addition, we XX% of growth client saw in increase an in quarter. the bookings

business bookings of client in Ultimately, our more proof being made OEMS. bigger, quality the nature. higher outcomes. new significantly utilizing solution that points are end-to-end investments global innovation had These translating are also We the more into in and product are ones

compared million year compensation the of stock-based profit gross which $XXX,XXX gross $XX.X XX% ago million, to period. quarter increased in to by in includes First $XX.X profit

period. XX% XX.X%, compared ago stock-based compensation First to including quarter in the margin year was gross

hallmark invest our stated continue we experience we client and to in product quarters, innovation. previous in As

such, was on As $X.X in some for the gross anticipate million the operations few first next compared the quarter from negative period. $XX.X Income we margin to impact ago for million quarters. year

First was year operations first include million stock-based quarter million the Adjusted EBITDA $X.X in compared the compensation quarter from ago of $X.X in income million. $XX.X to period.

quarter adjusted non-recurring associated higher-than-expected First of retaining and below operational and talent. costs fees, was was EBITDA public acquiring a by costs, and impacted company our with expectations combination

this. discuss the to led that factors Let's

legal, temporary $X.X professional First, company expenses of costs approximately associated we tax staffing, incurred advisory, non-recurring and expenses services, included SEC These fees incremental reporting public million. with activities. and

anticipated projects. the we in professional these fees underestimated scope we the services of quarter, While

$X.X our with for $X.X first negative million compared incurred includes higher $XX.X increased the management benefits, we We attract expenses as GAAP and retain quarter. remain grow $XX.X Second, We quarter higher and the million of stock-based of with globally. million of ago fees, million and as We employee generated cash free to our in including of ended structure related costs net to continue return-to-office income business. million. to $X.X people, the committed our which we $XX.X cost quarter wage prudent recruiting talent, million, inflation year flow to equivalents. associated cash cash in to compensation was negative

Finally, guidance. let's turn for

revenue of $X.X expect adjusted $XX the be growth range anticipate to midpoint. EBITDA to be the at adjusted we $X in XX% in an million which QX, representing at to the For margin $XX EBITDA the of XX% to represents million, million, midpoint. range of million We

in XX% represents range at midpoint. year to the For million, be the we $XXX.X million to revenue $XXX.X growth XXXX, of which expect full the

$XX.X the range million, in the be expect $XX.X at million EBITDA of representing XX.X% adjusted margin to adjusted We EBITDA midpoint. an of to

year $X.X For of quarter. for $XX purposes, compensation million second and million we the expect the for stock-based full XXXX modeling

updated factors. EBITDA our to incorporates adjusted which Turning guidance, the following XXXX

first expected than as lower quarter EBITDA the adjusted earlier. results First, discussed

in increase significant for costs experiencing are we talent. Second,

retaining with attracting accelerated As seeing wage inflation, the such, consistent with is in expect and what talent. are we market. we This costs

that Finally, further investments adjusted higher we committed have conviction higher long-term opportunity enables We the be directly our over a and platform XX% greater both than to expand and topline three increase profitability. achieving revenue margin greater our primarily achieve investments group. us leverage our on to Further, of next help target EBITDA in productivity may to and and where see development we capabilities, will growth higher the growth technology that remain operating two years.

to of especially In upselling that, generation that existing are having and to win overall momentum contributing one; by fact, to Operator, enable sales our our us more velocity us to sets and clients, to driven recognize go our open and and as as in in competitive G&A like our we to Enfusion client long-term logos; higher and support, QX. simultaneously, continue our these as clients. XX% durable XXXX, managers, scalability. Alongside product and across for increasing asset in XX% revenue gives allows upsell technology, please we'd a time, by well driven call with offering growth thesis. clients, we fundamentals, APAC, continue saw us, overall the the our With an to our geographic profitability, products, They continue go-to-market and revenue. as these continue These two, more to clients up are expansion onboarding see future our tied investments our topline, institutional on conversions, operating position, globally unlock. as revenue strategy leverage impact our efforts community investment confidence the the We This accelerate questions. requests, by EMEA, and land new high Americas. of faster, with we not but up and growth while to well-positioned growth marketing, pricing investments larger existing is XX% to support percentage innovation in and demand TAM only delivering client clients to positions our significantly in focused which of are to will us of new power through higher also and investments, already ahead.

Operator

The is with first Becker William question from you. Blair. Thank Dylan Instructions] [Operator

open. is line Your

Dylan Becker

the us stock-based there pace of you investing accelerating Steve color pure Hey needs? of talked maybe comp last are further and dynamics hiring way get kind wage a of Can questions. first for that on you of the quarter guys, of quarter, things? the of the sense some know, thanks Any it component Maybe for the as investment kind help quantify about gave had the margin side too. annual on inflation helpful or taking dynamic you that maybe And I of here, kind capacity what in well? go-to-market it from you a but is wage is the -- factoring fundamental to infrastructure guys for guide, that

Steve Dorton

the thanks fundamentally question. Yes, for right. all, changes business No at the to

look so and really quarter. And we that from company going start at QX, wage public did is inflation our we it to see year. see through as the the through we're costs, we wage underestimation going non-recurring as as inflation of our to we And are were And the continuing right?

So, possibly just are to that be wage thinking that as that sure make we what prudent want we go have about a we forecast and forward. could inflation one, we

as continuing innovate are development that sure our and at also group, We doing look overall. we're we to the a little to just we as technology investment make look platform at

Dylan Becker

here Maybe helpful. for too. super That's Okay. TK

that tied to as solution kind a side. seems can But or the area traction of side guys of right? the you So, order kind see in accounting strength, maybe what's areas dig little execution, It key the pre around the manage to post good for well? compliance bit tie How things. on foundational and but driver side the trade execution integration, some ancillary of extension of that Thanks. deeper like a here maybe order of that accelerated PMS help obviously, natural Maybe this? the

Thomas Kim

Dylan. a It's question. Thanks, great

be, And so realization frame an like. how is solution and benefit would end-to-end I first, would there looks an it of what basically overarching

broader described road And show way out Enfusion's the playing into so participation about it's I we as and sort in that, of quarter. as last and as think that, journey the the markets the early both of

of the to doing what arena as our it's market of capabilities unified capabilities so moving more about more and And they learn the transaction Enfusion moves naturally our of solution into deliver. so, begin can component a towards as this

of natural in GL construction, do and relative you coupled the accounting we've the the progression capabilities now and the And strategies so let it portfolio the services of the then if what's the terms system to have middle that behind is, happening created the in managed with my office. back embedded, me trading

And pulled the that of you're of, the out we we've what's capabilities answer that points the clients of the embedded in the come evidence the as as that component pre- happening as both you of we singularly think Dylan? that are playing that Does the started. realize the in realization we your into not the value proof further able end-to-end. technology the just market simplification just OEMS stack, an we come the spot is And all see made post terms the alongside feature of that hoped. terms costs follow-through is way pre and out and and of individual that that had the that, efficiencies progress on it's basically things post-trade to adopting thing. so proposition our what those about to and it or question, is OEMS together. of And broader of that But that that's and that basically This capabilities, workflow offer the of

Dylan Becker

all color guys. absolutely. the there. Yes, Appreciate Thanks,

Thomas Kim

Thanks, Dylan.

Operator

next The from Becker. Mr. question you, with Stifel. is Thank Lane Parker

open. Your line is

Matthew Kikkert

sales taking Matthew market international is print. these on on This the strong Kikkert you lot your for Thanks Parker. Hi. team on of percentage And curious To my a forward? accelerating focused And do on I'm growth going now? for plan is investments right highlighted what question. start, you really this

Thomas Kim

Steve and I'll backwards go jump I'll in. So let

EMEA overall take you of business, component component consideration our international is into a the so whether or core of APAC And our strategy. overall

coming we've grow. seen that's markets really in so the And to together. what with pleased continue how quarter, And first to expect we those we're

currently. through support consultants we continuing to and continue with the our doing relationships brokers Our on that and side overall go-to-market native we to with is the with continually desks, we currently quarter and the the Trust like did electronic clients, across like that with the we're world have with trading Enfusion the strategy relationships of the previous in our and or the within cover prime fortified our cloud regions being Northern Coinbase evolve strategic did partners with all

with these the of continue to coupled we we'll growth think professional all dominate can and so the sales in the the on in our we of And team, regions of achieving sort goal lean penetration things, continue to in. that expansion within various our

Steve Dorton

at a Americas typically XX% about as in XX% our you based overall, in around, look sales the APAC. about is as is follow-up, XX% the EMEA team and breakdown on And and

Matthew Kikkert

that and partnership is progressing Do quarter, And then it. Coinbase the how crypto you it's a portfolios. with by secondly, Got for received last have partnership being on announced customers? update how you current any

Thomas Kim

being It's by it's broadly, the made we're space whether digital well on the on watching asset or the both side. so customers market partnership received broader actual blockchain happy crypto and the we're side being and more the about that's progress and the pretty

clients that so interested be And their feedback ability our we're so effort platform. taking that getting we're happy in the they're that the our to adding helping to crypto very a deliver portfolios into from continue and do is they're within leadership interested, in

deliver experience utilize and clients. and third-party our partners to friendly and to you services, system we fuel are ultimately, it, about help it's it. to think very we terms their together, one come just another not they utilize want And of in and well impact in Trust when meaningful and but APIs to about products our the can be, where operating only we're Northern want mutual where call we if so And to of extremely core excited power as those

and expect allow these extremely continue we offer so our of Does to these our enter And products about I the services us relationships accelerate and be will overall types ability And world. Matthew? that types to help, to continue of adoption excited into across to that continue that we to relationships.

Matthew Kikkert

that much. Thank you Yes, does. very

Thomas Kim

question. the for Thanks

Operator

next The Ikeda question you. Koji Thank Bank America. of is from with

Your open. line is

Tanika Mehra

This the thinking question be is on Koji. taking quarter for should Tanika first Mehra questions, about months. EBITDA for XX how and really, great adjusted XX super. the is growth XX% to over and is in next my we guidance on really Thanks months My profitability

slightly a like And growth it like rule margin, the has seems XX% a XXXX. in that have of and So, profitability the we we our forecast, great about one to changed things had and XX, business but of for growth profile. XX% EBITDA got

profile? how So to greater to get or XX% about should linearity be thinking my question margin like is, a we EBITDA Yes. back

Steve Dorton

I if could. Yes,

forward, And greater at our future the to those investments, targets our right? are investments, have they We XX% it's product And So, also as look And our long-term we adjusted right? at also win and those our adding fulfill from we us are coming really And scalability, to enable we as is to positions really around requests, committed as go services. achieving requests. client not We're EBITDA. look as than changed, logos growth more client product to we innovation so right? innovation. it that

simultaneously had more for today, to so a serviced were than technical on-boarded, as become we than as ever that as And and almost on-board of are we've those that clients we support. the by we as many and team there twice year scale we And well. the ago. each is are And grows as on-boarding clients able before being it's then clients reduced number tech support

positive from there we're we've line so that we're responses hearing really our That strategy. that the with clients. go-to-market making well our actually along with And goes in as investments improved are and

to we're over power, grow our continuing allow expand pricing will business geographically to have our we and to revenue and time. that scale So

we're achieve do we're going now sight on on how have to to it we and So deliver going of that. a line

Tanika Mehra

That's great. much. Thanks so

Thomas Kim

to I It's If a great just question. kind that. could add of

we're lightly to relative the Steve we've were. of at us double recognize to do I ability the allows looking actually where the to to from we impact taken we're And investments This none expectations have. implementations think time to been making, any effectively given as revenue that has mentioned, seeing the of been faster. effectively that it that

investments that, that year. that leverage the to the in made continue see of to put the so support expect see throughout little as mentioned, we've we just of thing. velocity And wins we through to to is which Coupled increase the the is the it we course same context, a we time, the with more commentary, expect fact the that as Steve into accelerate bit

are to expecting one the that why growth asking of we of coming us First the the client seeing of they're why of reasons topline things that in main terms customers all, that experience they're these to differentiators continue our and that are we're is the see.

side, what the result products invested into problems. to And time able and problems as support quarters directly to that consideration better, are, understand we've to, able the to us be and ability being having better previous happy also but those their even at basically our able deliver ability so being address that upsell basically as adding when in happy for in you right for support deliver the services and solve -- to to of a take result of is a The clients. state as their ability

aiming or next we business in EBITDA correlates and this course then delivering at profiles to directly two. correlates that our so we to increases into we're year journey of that which to to do directly leverage the expect types over type that see the back revenue of expect see of And the the to

And reliable very and we're so that produce business helps. together extremely if all excited of these things overall that a to coming are about, durable

Operator

The Goldman from you. Borges Gabriela question next with Thank Sachs. is

Your open. line is

Gabriela Borges

morning. Good for question. for and you Thank my One Steve. for one Hi. taking TK

that So hedge And than up data mentioned you you starts funds point also for funds. front, you could think greater be I of year. or this great be a were hedge on think into flow then mentioned they I year new fund had TK, last will

around then trend? how press in more the year a on And being years this Thank would relative love point color us you of bookings Steve, that the comment XX% you. to the from? last where type to little bit coming total. ago? that history, the is this for does data to So get remind compare and Could that What time just three is just of release OEM

Thomas Kim

Gabriela, going, hearing terms are like, Hey, prime side, effectively in from the data about launching we coupled they where saying. watching great we're what flows, their also hedge is brokers or looks it have that special what collecting own of what our the are sales capital questions. and terms of and we're basically Listen, what that folks point the another people data And new what ground with the clients, with it's the terms fund on launch boots thinking points funds. and our relationships the we relationships looking on in of are in actually have

have feel obviously, and going data And in so never so when going we we'll fund to good seeing direction up, a the actually on add that all healthy new that see throughout we that and to actually as way. able capital predict we're But could that back far hearing, and the obviously, see the that, played be that expectations we just that the year. hope is the we not it's whether course for come year flow points the environment launches visibility, that based better future. through it's what the pretty we of But or step we're out

Steve Dorton

then And a as second your question OEMS, percentage on bookings. of around

more in in has managers years, more in XX%, more percentage somewhere past and we and see we as more So typically see asset around been it's consistently conversions QX, okay? But grown. especially that and QX, as

had at bookings that their in around had. it QX, to that was And primarily, XX%. we then were of a That pretty OEMS two And actually in large saw so high in -- clients the saw had in we tool OEMS QX, amount we mid-XXs. we the the

Gabriela Borges

where And platform? given unusual in would the PMS strength be the a OEMS so could we see becomes majority of actually that Or scenario the bookings? your

Steve Dorton

right? it that, for will a I I will that, ever majority. be think typically -- would that it to it unusual think stay become around be unusual,

Gabriela Borges

you. Thank Okay.

Operator

you, is The next Chris question Borges. Donat Sandler. from Thank with Ms. Piper

is open. line Your

Chris Donat

for good taking Thanks Hi, questions. afternoon. my

the on international Just as wanted that to EBITDA relates margins. one and to ask

that business business? really it the growth to is similar is I'm in EMEA Americas and APAC just margin a Your or wondering, has been And impressive. lower EBITDA

Steve Dorton

very really similar the have we type the do globally We differentiation No. to see any Americas of that that. not to comes when it between business. It's clients

Chris Donat

about higher the just Is bring talked, that going quarter but comment forward? also and Okay. I'm that macro dynamics we coming a the side macro count I'd then functionality the the clients. just -- different And macro to -- might ask given then funds environment having you and understand as and potential just about clients XX clients currency new or I volatility, other trying there's much, want things better who this more think current you the with before we of from and so was them. like do be offset figured trajectories. market the I market think doing here? you one the thought that, the on more client as churn just And Do your

Thomas Kim

optionality we is or you these think both of short within front the strategies, grow the employ it's flexibility of various the sort Steve sweet that then configuration and and overall evolve strategies, feel very our Sure. scenarios systematic is is these the to macro I can that into. we name be funds these lot -- had spike strategies that whether a giving these and are that can different across to one it, very offering of Listen, about back or backwards I our kind various right, or that offer or that go spots to ball. benefits long good can global of the and start

they're just as how they that areas where clients it helps of sort that's some strong that those global are. well basically to way the out of that they And we of nice excited And real a thinking we're though, so, business gate, we're why of grow their they're and to kind that, available in of I that. that uptick we're And think these upticks see wins. the really going seeing place how and saw alongside as as It's we're about. macro grows from about is

Steve Dorton

decreasing point churn, this in seen in the do on question your have last increasing indications not change all six We churn at on really see or then churn at not we of quarters. time. And any

We have around anything that. not seen

Chris Donat

take that you. I’ll good news. a -- as is That okay. Thank It's

Steve Dorton

Thanks, Chris.

Operator

with Thank you, is James from Mr. Donat. Morgan question [Operator Faucette next Instructions] Stanley. The

line open. Your is

James Faucette

it. lot. Thanks Great. Appreciate a

midpoint given is You've change levels? those the of leverage, imply mentioned margin it still to target And me accelerating outlook teens help been to of get long-term think you cadence that more your range? your particularly, it's EBITDA something But or the XX% where along can about unchanged. in seems to low back the with in has

Steve Dorton

a now made those over see -- line of We investments. already make of we've to investments mean quarters. I the investments are sight have continuing We're off. more starting at to continue And continuing, No, when as to really up of add returns sets last we our international some we our right? few overall, are paying for those some but those added We're so see innovation we wins team, we of we and growth technology to our look -- development to as forward. you just us some and as go that

we to add we're position clients to at a you going that that revenue simultaneously As on-boarding and lot see. is the that our really accelerate a more in look

So few will yes, and we and continue grow over next to there. we to quarters see the over see that we'll get time continue that

James Faucette

just taking your want Got and it. to payoff the ramps that to through on into payback forecast how the that of point periods our we et P&L? about return we're investments those account should we into contemplating make that investments, time on and how think be investment and Well, I cetera, try as the to roll that sure appropriately?

Steve Dorton

to every always with at we're and four site months, with typically three returns at for that We're we've two do And we've right? we the five our payback start line looked that years. looking to making. for have looked our mean, investments some around back, investments, so a to period, payback to as dollar. in our seeing the the I -- and in and to We're three you, tell for of will I somewhere Yes. we that, get in that get XX% we're

James Faucette

Thanks, That's great input. guys.

Steve Dorton

Thanks, James.

Operator

this over any for concluding Faucette. to at Thank now no waiting There management additional questions I your remarks. Mr. conference are you, turn will time.

Thomas Kim

support to continuing to the time and the all the continued all dialogue a forward wonderful Look for appreciate I you us join taking have and interest. Thank today. evening.

Operator

for XXXX year call. participation. your the concludes you quarter earnings Thank first That Enfusion fiscal

End] now… [Abrupt may You