Endava plc (DAVA) Q4 2019 Earnings Call Transcript

Endava plc (DAVA 2.47%)
Q4 2019 Earnings Call
Sep 25, 2019, 8:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Endava's Q4 fiscal-year 2019 and full-year 2019 results conference call. [Operator instructions] I would now like to hand the conference over to your speaker today, Laurence Madsen, investor relations. You may begin.

Laurence Madsen -- Investor Relations

Thank you, operator. Good afternoon, everyone, and welcome to Endava's fourth quarter of fiscal 2019 and fiscal-year 2019 earnings conference call. As a reminder, this conference call is being recorded. Joining me today are John Cotterell, Endava's chief executive officer; and Mark Thurston, Endava's chief financial officer.

Before we begin, a quick reminder to our listeners. Our remarks today include forward-looking statements, including our guidance for Q1 fiscal-year 2020 and for the full fiscal-year 2020 and other forward-looking statements. These statements are subject to risk and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward-looking statements, and reported results should not be considered as an indication of future performance.

Please note that these forward-looking statements made during this conference call speak only as of today's date and the company undertakes no obligation to update them to reflect subsequent events or circumstances other than to the extent required by law. Please refer to our SEC filings, as well as our financial results press release, for a more detailed description of the risk factors that may affect our results. Also, during the call, we'll present both IFRS and non-IFRS financial measures. A reconciliation of non-IFRS to IFRS measures is included in today's earnings press release, which you can find on our investor relations website.

A link to the replay of this call will also be available there. With that, I will turn the call over to John.

John Cotterell -- Chief Executive Officer

Thank you all very much for joining us today. Mark and I are very pleased to be here to provide an update on our business and financial performance for the three months ended June 30, 2019 and for our fiscal-year 2019. Endava had another record quarter for Q4 fiscal-year '19, with revenue of GBP 76.6 million, a strong growth of 24.6% year on year from GBP 61.5 million in the same quarter in the prior fiscal year, all of it on an organic basis. Our revenue growth rate at constant currency was 22.7% year on year.

Our strong revenue growth is driven by the expansion of our existing customers and the acquisition of new ones during the quarter. We continue to broaden our client base and added 20 new ones during the quarter in all regions and verticals. We ended the quarter with 275 active clients, up from 258 at the end of the same quarter in the prior fiscal year. I'd like to reflect on our accomplishments in our first year as a public company.

It's been an exciting journey for us, and our listing on the New York Stock Exchange has been a catalyst for our visibility. We continue to expand in all three of our industry verticals, while accelerating our growth in new verticals. For fiscal year ended June 30, 2019, our revenue totaled GBP 287.9 million, up 32.3% year over year. The total number of clients who generated revenue over GBP 1 million increased by 37% year on year to 63, while those generating revenue over GBP 5 million increased by 88% to 15 during the same period.

In the last fiscal year, we grew in all of our regions and verticals. In North America, our revenue increased 73.8% year on year; in Europe by 7.8%; and in the U.K. 31.4%. All of our verticals also grew very strongly, with payments and financial services up 23% year on year, TMT up 29.1% and Other up 73.1%.

We had strong revenue growth and improved operating margins. As we spend time talking to our customers about the challenges and opportunities they face in embracing digitization, we see a number of trends emerging. Whilst many organizations have embraced the opportunities provided by becoming a more API centric, there is an increasing realization that to gain broader agility and efficiency advantages, investments need to be made in decoupling and simplifying legacy architectures. Customers are having to address their moneyless challenge.

This exercise can seem somewhat daunting, but it is our experience that aligning business objectives and road maps alongside technology change road maps, organizations have the opportunity to decouple at the same time as delivering change programs. Increasingly, organizations are also talking about the failure to realize the gains anticipated from adopting robotic process automation technologies. This is largely driven from using the tools and approach in a tactical versus strategic fashion. To truly realize the potential offered, organizations have to have road maps to not only automate the cumbersome manual processes, but also to describe how those processes are ultimately subsumed into core systems and platforms.

We believe that coming at the solution from the perspective of the business problem, coupled with deep technical expertise, allows us to propose more intelligent and sometimes custom-developed automation solutions that go beyond what can be described by nontechnical users. Both of these macro trends highlight the need to consider systems combine in an architecture from a more evergreen perspective. Rather than considering the life cycle of systems from the perspective of projects and programs, change should be embraced as a constant. When business and IT teams then embrace the benefits of thinking in products and placing user experience at the heart of what they do, there is a recipe for success.

The Endava online community remains very active, with over 30 postings on Technology Thought Leadership in the quarter ended June 30, 2019. Today, I'd like to highlight how our technical solutions and product innovation offerings are helping clients in the fast-evolving world of TMT. Endava's creativity, combined with our technical expertise, has been instrumental in helping our TMT clients develop and implement new technologies to reach new markets and further drive sales by innovating their product offering. In the technology sector, we've utilized our experience in distributed agile delivery to support the innovation, product development and engineering integration efforts of Poly, formerly Plantronics and Polycom.

We have been working with our engineering teams for the last eight years on developing their desktop, mobile and cloud software product lines and helping them maximize the value of their headsets. Endava is also a certified Cisco preferred supplier, and we have been working with them on WebEx conferencing, WebEx teams and Cisco Jabber messaging, IP telephony and video endpoints. Two years ago, we began working with DisplayLink, a fabulous semiconductor company developing technology that enables seamless connectivity between devices and displays, irrespective of operating system or display connector and whose chips are used in products from some of the world's leading PC and peripheral brands. We started by developing a kernel mode driver for an emerging USB technology, an area that was new to us, which meant our teams were excited to tackle a new technical challenge.

We quickly delivered a prototype driver compatible with similar software stacks developed by Microsoft and Intel. Nine months later, this driver is fully feature complete and highly performant with DisplayLink using it to showcase their solutions to new OEM customers. DisplayLink increased the scope of work mid-development in order to build a similar kernel driver for their Android platform, accelerating significant new opportunities in the Android smartphone market. We continue to expand our relationship with DisplayLink.

They're using our creative and cloud services, and we are working as a partner across other business areas and operations. Other projects for West Coast technology clients often include analysis of data to ensure the provision of excellent cloud-based services to their customers, including subscription-based services and loyalty platforms, which allow our clients to keep close to their customers. We are providing near real-time data analysis and measurement solutions through the cloud to large technology clients to help them interact successfully with their customers, both B2B and B2C. Our partnership with Bain & Company continues to grow strongly.

We now have three clients who've registered over GBP 1 million of revenue to Endava since we announced our partnership. To date, we have completed over 10 projects through this partnership, helping drive revenue growth for both businesses. Together, we are focused: firstly, on digital transformation programs; secondly, on working with PE firms to develop their investment thesis for prospective targets; and finally, on building great product that uses technology to help Bain accelerate their consultancy offerings. Our client growth continues to translate into strong employee growth.

We ended the fiscal year with 5,754 employees, a 19.4% increase from 4,819 at the end of the last fiscal year. While the competition for talent remains challenging, our strategy of being an employer of choice in the cities where we operate is a strength in recruiting and retaining talent. The team of 32 highly experienced Salesforce specialists based in Romania who joined us early June is already well integrated and now working as part of Endava sales and delivery. Salesforce is a disruptive technology for our existing client base, and this team is helping to accelerate our industry lines of business by giving us an extra dimension to explore with existing customers, plus creating opportunities with new organizations.

On a macro level, we continue to review the potential impact of Brexit on Endava. Currently, we're not aware of any clients who are adjusting their spending plans with us as a result of the uncertainties caused by Brexit. I'm pleased to announce the appointment of Sulina Connal to our board of directors. She has served as a director of mobile and connectivity partnerships at Facebook and previously served as the senior vice president of strategic partnerships at Orange.

We're off to a strong start to the year. And despite macro uncertainties, client demand for digital transformation is not abating. Demand remains strong in all geographies and verticals, and we remain optimistic about our ability to deliver sustainable growth in the future. I'll now pass the call onto Mark Thurston, our CFO, who will walk you through our financial results for the quarter and the fiscal year and provide guidance for the coming quarter and the new fiscal year.

Mark Thurston -- Chief Financial Officer

Thanks, John. Endava's revenue totaled GBP 76.6 million for the three months ended June 30, 2019, compared to GBP 61.5 million in the same period last year, a 24.6% increase over the same period in the prior year. In constant currency, our revenue growth rate was 22.7%. Our adjusted profit before tax for the three months ended June 30, 2019, was GBP 13.5 million, compared to GBP 9.7 million for the same period last year, a 39.9% year-over-year increase.

Our adjusted profit before tax margin was 17.6% for the three months ended June 30, 2019, compared to 15.7% for the same period last year. The year-over-year improvement in our adjusted profit before tax margin is mainly due to a continued positive pricing environment, FX tailwinds and control of SG&A. Adjusted profit before tax is defined as the company's profit before tax for the period adjusted to exclude the impact of share-based compensation expense, amortization of acquired intangible assets, realized and unrealized foreign currency exchange gains and losses, initial public offering expenses incurred, Sarbanes-Oxley compliance readiness expenses, fair value movement of contingent consideration, secondary offering expenses incurred and stamp duty on transfer of shares, all of which are noncash other than realized foreign currency exchange gains and losses, initial public offering expenses, Sarbanes-Oxley compliance readiness expenses, secondary offering expenses incurred and stamp duty on transfer of shares. Adjusted PBT margin is calculated as a percentage of our total revenue.

Our adjusted diluted EPS was 20 pence for the three months ended June 30, 2019, calculated on 55.2 million diluted shares as compared to 15 pence for the same period last year calculated on 51.3 million diluted shares, up 33.3% year over year. Revenue from our top 10 largest clients accounted to 40% of revenue for the three months ended June 30, 2019, compared to 39% in the same period in the prior year, and the average spend per client from our top 10 largest clients increased from GBP 2.4 million to GBP 3.1 million for the three months ended June 30, 2019. We continue to grow outside of our top 10 clients. The number of clients who generated revenue of at least GBP 1 million on a rolling 12-month basis grew to 63 at June 30, 2019, compared to 46 at June 30, 2018.

These large clients operate in all three of our geographical locations: North America, Europe and U.K. In the three months ended June 30, 2019, North America accounted for 28% of revenue, compared to 26% in the same period last year, Europe accounted for 27% of revenue, compared to 31% in the same period last year and the U.K. for 45% of revenue, compared to 43% in the same period last year. Revenue from North America grew 34.2% for the three months ended June 30, 2019, over the same quarter of 2018.

Comparing the same periods, revenue from Europe grew 8.2% and the U.K. 30.5%. We grew in all three of our industry verticals during the quarter. Revenue from payments and financial services grew 22.4% for the three months ended June 30, 2019, over the same quarter of 2018 and accounted for 52% of revenue, compared to 53% in the same period last year.

Revenue from TMT grew 21.9% for the three months ended June 30, 2019, over the same quarter of 2018 and accounted for 28% of revenue, unchanged from the same period last year. Revenue from Other grew 35.1% for the three months ended June 30, 2019, over the same quarter of 2018 and now accounts for 20% of revenue, compared to 19% in the previous fiscal year. This growth was mainly driven by clients in the consumer products goods, services and education sectors. Our adjusted free cash flow was GBP 8.9 million for the three months ended June 30, 2019, compared to GBP 11.9 million during the same period last year.

This is largely due to timing of cash outflows in the comparative quarter. Our adjusted free cash flow is our net cash provided by -- sorry, used in operating activities plus grants received less net purchases of noncurrent tangible and intangible assets. Capex for the three months ended June 30, 2019, as a percentage of revenue was 2.9%, compared to 2.8% in the same period last year. I'd now like to move on to some highlights for our fiscal-year 2019.

Endava's revenue totaled GBP 287.9 million for the fiscal-year 2019, compared to GBP 217.6 million in the previous fiscal year, a 32.3% increase over the same period in the prior year. In constant currency, our revenue growth rate was 31.1%. Our adjusted profit before tax for the fiscal-year 2019 totaled GBP 52 million, compared to GBP 33.5 million for the same period last year, a 55.3% year-over-year increase. Our adjusted profit before tax margin was 18% for the fiscal-year 2019, compared to 15.4% for the same period last year.

The year-over-year improvement in our adjusted profit before tax margin is mainly due to continued positive pricing environment, improved utilization and FX tailwinds. Our adjusted diluted EPS was 76 pence for the fiscal year ended June 30, 2019, calculated on 55 million diluted shares as compared with 53 pence for the previous fiscal year calculated on 50.4 million diluted shares, up 43.4% year over year. Revenue from our top 10 largest clients accounted for 38% of revenue for the fiscal year ended June 30, 2019, compared to 42% in the previous fiscal year. Additionally, the average spend per client from our top 10 largest clients increased from GBP 9 million to GBP 10.9 million, a 20.2% year-over-year increase.

We grew in all geographies on a year-over-year basis: In North America, up 73.8% year over year; Europe, 7.8%; and the U.K., 31.4%. On a year-over-year basis, the revenue from payments and financial services increased 23%, TMT 29.1% and Other 73.1%. The year-over-year growth in Other came mainly from consumer product goods, energy, healthcare, retail and services. Our adjusted free cash flow was GBP 29.8 million for the fiscal year ended June 30, 2019, compared to GBP 28.7 million during the same period last year.

Capex for the fiscal year ended June 30, 2019, as a percentage of revenue was 2.5%, unchanged from the same period last year. Turning to an agreement that we entered into with Worldpay in November 2016, we granted Worldpay an option to acquire our captive Romanian subsidiary that we created and started for Worldpay. On June 1, 2019, we entered into an agreement to sell the captive to Worldpay and to terminate the option and transfer agreement. And on August 31, 2019, the transaction was completed.

Our guidance for Q1 fiscal year '20 is as follows. We expect revenues will be in the range of GBP 81 million to 81.8 million, representing constant currency growth of between 20% and 21%. We expect adjusted diluted EPS to be in the range of 21 to 22 pence per share. Our guidance for the full fiscal-year 2020 is as follows.

We expect revenues will be in the range of GBP 346 million to GBP 348 million, representing constant currency growth of between 20% and 21%. We expect adjusted diluted EPS to be in the range of 85 to 88 pence per share. Our guidance regarding constant currency growth is pro forma for the sale of the captive, which closed on August 31. This concludes our prepared comments.

Operator, we are now ready to open the line for Q&A.

Questions & Answers:

Operator

Thank you. [Operator instructions] And our first question comes from the line of Bryan Bergin from Cowen. Your line is open.

Jared Levine -- Cowen and Company -- Analyst

Hey. This is actually Jared Levine, on for Bryan. So I just have one question and a quick follow-up after. So in terms of the captive sale now completed, what is the updated outlook in terms of the broader FIS account? And any cross-sell successes to date you can mention?

John Cotterell -- Chief Executive Officer

Sure. Hi. Was it Joe?

Jared Levine -- Cowen and Company -- Analyst

Jared.

John Cotterell -- Chief Executive Officer

Jared hi. Yes, thanks for that. The -- just to recap, so the captive deal closed at the end of August. Obviously, the FIS deal with Worldpay also closed a little bit -- slightly more recently than that.

I mean the relationship with Worldpay remains very strong. We've got a number of conversations going direct with FIS. But I think in the few weeks since that's closed, it's probably too early to actually see cross sale. What we are seeing is some of the FIS strategy about what they wanna do with Worldpay to start to cascade through into some of the backlog of work that we're starting to perform.

Jared Levine -- Cowen and Company -- Analyst

Gotcha. And just one quick follow-up. We know it's the new board member. Anything to call out there as far as new potential opportunities there?

John Cotterell -- Chief Executive Officer

Sulina is currently at Facebook, and she runs a number of their partner programs there. So we'll let her easy and as a board member first. But hopefully, over time, there might be some introductions there that she can make.

Jared Levine -- Cowen and Company -- Analyst

All right. Perfect. Thank you. Congrats on the quarter.

John Cotterell -- Chief Executive Officer

Thank you.

Operator

Our next question comes from the line of Bryan Keane from Deutsche Bank. Your line is open.

Bryan Keane -- Deutsche Bank -- Analyst

Hi, guys. Congrats on the solid results. Wanted to ask about clients over GBP 1 million. It looks like it dropped sequentially by four to 63.

It looks a little bit unusual compared to the recent trend. Anything to call out there?

Mark Thurston -- Chief Financial Officer

Hi. Hi, Bryan, not really. It's at 12-month measure. So any sort of minor change in activity quarter on quarter can relegate decline below the GBP 1 million.

I think what gives you a better sense of the progress actually is if you look at annually and 20-F hasn't -- I think it just come out. So it's hidden there in the detail, but it was very encouraging. It's actually the progress of the number of clients going up the band. So we call out in the 20-F are over GBP 5 million, two to five.

So over GBP 5 million from 2018 went from eight to 15. Our GBP 2 million to GBP 5 million went from 22 to 26. And then our GBP 1 million to GBP 2 million went from 16 to 22. So I think it's just one of those small movements that we get potentially from quarter to quarter.

Bryan Keane -- Deutsche Bank -- Analyst

Got it. Got it. And then on -- I know you guys talked about no impact from Brexit in U.K. Can you talk a little bit about the Europe geography? A lot of concern out there on potential slowdown.

Are you guys seeing anything or anything in the pipeline that could suggest pressure from Europe?

John Cotterell -- Chief Executive Officer

Yes. So actually, the reason why we're not growing as strongly in Europe is because we're pushing more of that new territory energy into the U.S. In terms of where we're expanding the sales force and putting our investment. So the slower growth in Europe is more of a function of our focus and energies over the last 12 months than a function of actually lack of opportunities there.

Just to rewind, it was about 21 months ago, we did the Velocity Partners deal, which gave us a big step up in the States. That integration is going very well. And combining those sales teams and beginning to drive the action and activity in the U.S. was a critical part of following through on that merger and acquisition.

So the organic growth that you're seeing in the U.S. absolutely plays to do that. We will start put some attention back in Europe and are starting to do so now. And I think that over the next 12 months, you'll see a pickup in the results from the energy we put into that.

Bryan Keane -- Deutsche Bank -- Analyst

OK, great. And then last question I had is on the revenue guidance, 20% to 21% constant currency, also the first quarter and for the full fiscal year, looks like you guys are expecting pretty constant growth, not a lot of fluctuation by quarter. Is that just -- is your moving piece inside there? Or is that just steady demand that you're seeing? You don't expect to see any real fluctuations in that revenue growth rate.

Mark Thurston -- Chief Financial Officer

So I'm certainly sort of looking out sort of Q1, we're not that far off from it. So that is a pretty sort of a nailed down sort of figure. The growth for the full year, obviously, is a good sort of nine months off. So we have good sort of visibility going ahead.

And the demand for our services sort of continues. And may be some variation over the quarters, but I don't expect it to be significant.

Bryan Keane -- Deutsche Bank -- Analyst

OK, great. Thanks for taking the questions.

John Cotterell -- Chief Executive Officer

Great.

Operator

Our next question comes from the line of Charlie Brennan from Credit Suisse. Your line is open.

Charlie Brennan -- Credit Suisse -- Analyst

Great. Thanks for taking my questions. Just two, actually. The first is a follow-up on that revenue guidance.

As you remarked, you've got basically 100% visibility of Q1. Your visibility is less than that for the full year as a whole. If I look at my model, it looks like the second-quarter comps are two or three points harder than Q1. Can you just give us some visibility into the known contracts that are ramping up and ramping down that give you some confidence that you can sustain that Q1 growth rates? And then secondly, if we just drop down through the P&L, we've seen margins ticking higher.

You obviously called out the rising prices and FX benefits. Can you just update us on where you think the right sort of medium-term margin window is for the company? Thank you.

Mark Thurston -- Chief Financial Officer

So you're absolutely right about the sort of visibility sort of Q1, Q2. So I think there's nothing sort of significant in terms of growth. I think the council consensus we have out there is quite sort of strong for Q2. We see more strength actually in the second half from where we're looking at the moment.

So that's basically all I can say really about that. In terms of margins and our margin sort of structure. So absolutely right. We maintained our gross margin -- adjusted gross margin going from Q3 to Q4.

Basically, that was a factor of utilization not coming off as strongly as we anticipated because of the continued sort of strength. We were helped with the strong pricing environment that we're in, and we are getting a little bit of help on FX. I suspect that our Q1 gross margin will probably be as strong as our Q4 margin, mainly because the utilization remains where it is and we -- as I've said, the pricing remains good. We are keeping a weather eye also on the Argentine Peso as well where we have the proportion of our cost base.

So I think the gross margins are going to remain where they are at the moment going certainly through Q1, Q2. But going out further into the second half, which is -- just to remind you, when we have our major pay round, that should adjust the margins down by a percentage point or so. And SG&A, as we go through the year, it was pretty high as we sort of had flagged for Q4 at 22.7%. We had anticipated that moving down over the course of the year, but it will remain roughly about that level in the first half.

So I think we're gonna see some strong adjusted PBT margin in Q1, but then it will move down to levels that we're indicating in the guidance for the full year.

Charlie Brennan -- Credit Suisse -- Analyst

And just a quick financial follow-up. Certainly, relative to my model, that was a nice earnings beat, but it looked like it was driven by interest income. Can you just remind us where the interest incomes come from? And what happens to that interest line through this year?

Mark Thurston -- Chief Financial Officer

Yes. Certainly. So the income is basically because of the IPO proceeds that are carry-on deposit. They have not been sort of meaningfully deployed at the moment, and we are a cash generating sort of business.

So we've had a net income for Q3 and Q4, and I think we will also see that in Q1. We are anticipating -- we have to take into account, Charlie, that we move our FX in those lines. But also, we're anticipating putting in place an extended revolving credit facility. So we currently have a facility of GBP 50 million, and we see significant sort of upsizing in that in time for Q2, Q3 and Q4.

So the interest line will move up as we cover the commitment fee costs on that.

Charlie Brennan -- Credit Suisse -- Analyst

Great. Thank you.

Operator

[Operator instructions] Our next question comes from the line of Maggie Nolan from William Blair. Your line is open.

Ted Starck-King -- William Blair and Company -- Analyst

Hi, this is Ted, on for Maggie. So I wanted to ask you about the new client additions this quarter. Could you give us an idea of what verticals those additions were in? And if there's any high-potential accounts there?

John Cotterell -- Chief Executive Officer

Sorry. Could you repeat the question? I was struggling to pick that up.

Ted Starck-King -- William Blair and Company -- Analyst

Yes. So I wanted to ask about new client additions this quarter. Could you give us an idea of what verticals those additions were in? And if there are any high-potential accounts there?

John Cotterell -- Chief Executive Officer

Sure. So there's new client additions. So seven of them were in the U.S. And out of those seven, four of them were in TMT, one was payments and financial services, and the two others were both in healthcare.

The -- six of them were in the U.K. One, in payments and financial services space, and five in the other space, ranging across education, healthcare, not for profit and some retail activity. Does that give you a feel for?

Ted Starck-King -- William Blair and Company -- Analyst

Yes. That's very helpful. And then as a follow-up, I wanted to ask about areas of the business that you believe will -- you're gonna emphasize this year in terms of investments. So this last year, North America was clearly a priority for the business.

Do you have a little color about which area of the business you're gonna double down here in 2020 yet?

John Cotterell -- Chief Executive Officer

Sure. Yes. So as you picked up one of the areas that we're starting to push energy and is ramping sales activity in Europe. Certainly, if we can find some M&A opportunities that are gonna fit that Europe focus as well, we'll give those a lot of attention across the segments and so on that we operate in.

There -- what we're always looking for is those sectors of the business where technology and the new technologies that are coming through are actually gonna drive changes to business models and changes to the way in which organizations operate. And we've got our eyes on a few segments where we are seeing those things pick up. Certainly, insurance in the financial world, we're seeing more and more activity and a few clients starting to really get going on that transformations. Asset and wealth management also, that one has been going for a little while, but it continues to build momentum.

If we look across to the Other space, where we see a lot of activity, healthcare, now that we are more established in the U.S., is becoming a much bigger opportunity for us than it was over here in Europe. The logistics space, we're actually seeing some opportunity to look at convergence across logistics, travel, automotive, essentially the whole mobility space around helping people and items move from one place to another, and the changes of business models that are being enabled through the technology through 5G, etc., that are starting to be applied to that space. So once again, in the early stages of shaping programs with clients around what could happen there and starting to see a pickup in execution.

Ted Starck-King -- William Blair and Company -- Analyst

That's very helpful. Thank you.

Operator

And we have no further questions at this time. I will turn the call back over to the presenters.

John Cotterell -- Chief Executive Officer

Well, thank you all for joining us today. As you've heard through the call, we remain optimistic about our ability to maintain our sustainable growth, and we look forward to speaking to you next quarter. Thank you.

Operator

[Operator signoff]

Duration: 40 minutes

Call participants:

Laurence Madsen -- Investor Relations

John Cotterell -- Chief Executive Officer

Mark Thurston -- Chief Financial Officer

Jared Levine -- Cowen and Company -- Analyst

Bryan Keane -- Deutsche Bank -- Analyst

Charlie Brennan -- Credit Suisse -- Analyst

Ted Starck-King -- William Blair and Company -- Analyst

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