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GTY Technology Holdings Inc. (GTYH)
Q1Â 2020 Earnings Call
May 8, 2020, 8:30 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 GTY Technology Holdings, Inc. GTYH Q1 2020 Earnings Call. [Operator Instructions] I would now like to hand the conference over to your speaker today, John Curran, CFO of GTY Technology Holdings, Inc. Please go ahead, sir.
John Curran -- Chief Financial Officer
Thank you, and good morning, everyone. I'm John Curran, GTY's CFO, and I'd like to welcome you to our first quarter earnings conference call for 2020. With me on today's call are T.J. Parass, GTY's CEO; and Harry You, GTY's Vice Chairman.
Please note that our earnings release and quarterly report on Form 10-Q are available on the GTY website at www.gtytechnology.com. Both contain additional information about our financial results.
During the call, we may refer to non-GAAP financial measures if we believe they are useful to investors or if we believe they will help investors better understand our results or business trends. You will find a reconciliation of these non-GAAP financial measures to the nearest applicable GAAP measure on Exhibit 2 of the earnings release. Any forward-looking statements we made in the earnings release or any that we may make during this call are based upon information that we believe to be true as of today and should not be relied upon as of any subsequent date. These statements are subject to a variety of risks, uncertainties and assumptions that may cause actual results to differ materially from those stated or implied by the forward-looking statements. Please refer to our cautionary statements in the earnings release under the heading Forward-looking Statements.
You should also refer to our SEC filings, including our most recent Form 10-K and Form 10-Q and any subsequent filings that we make with the SEC for information about the risk factors applicable to GTY, including risks associated with the COVID-19 pandemic. As you will hear in our comments this morning, the COVID-19 pandemic is impacting our business today, and we expect it will for an undetermined time into the future.
With that, I will now turn the call over to TJ.
TJ Parass -- Chief Executive Officer and President
Thank you, John, and thank you all for joining us this morning. I hope everyone is safe and well. The world has changed significantly in the last few months, and GTY has moved to adapt to these changes quickly.
On March 30, I assumed the role of CEO. Prior to that, I was the CEO of GTY's largest revenue and EBIT producing business, Questica, a company I founded over 20 years ago. As Head of Questica, I valued a balanced approach that saw consistent growth, profitability, innovation and a strong balance sheet within an environment that acknowledged the value of our greatest asset, our team. These are the primary cornerstones I'm bringing forward as I lead GTY.
Over the past year, I've had the privilege to get to know the CEOs of our business units, and we formed strong relationships. I'm very pleased to have this experienced group of leaders as part of the team that is committed to working together. Our CEOs averaged more than 15 years in the public sector and are passionate about the future of GTY. Craig Ross, CRO of Questica, has been promoted to CEO of that business. We've also appointed David Farrell, CEO of Sherpa as GTY's COO. Both Craig and David have more than 25 years of experience in the public sector and a long track record of running successful business operations.
I would like to also recognize our Board of Directors, and in particular, our founders, Bill Green, Joe Tucci and Harry You, whose vision brought the six businesses' units together over a year ago to form GTY. The Board's many years of experience have provided us with wise counsel and they are in support of our cash-focused business model.
As the brief primer, GTY was formed in February 2019 with the acquisition of six companies, each with important cloud solutions for the public sector market. These solutions include budgeting with Questica and Sherpa, payments and payment management solutions with CityBase, grants management with eCivis, procurement management with Bonfire and permitting and permit discovery with Open Counter.
GTY's products span across multiple verticals, including state and local government, higher education, K-12, healthcare and not-for-profits. The public sector is still behind on digital transformation and cloud technology adoption. With the forming of GTY, we saw a great opportunity to provide cloud technology to this market. By any measure, the market is large and in its early stages of digital transformation, and nothing has highlighted this more than COVID-19, and the preparedness of our customers. Our cloud-based technologies are equipped to deploy and have high customer retention. Our vision is to make GTY the preeminent cloud vendor for the public sector.
At GTY and within our business units, we're focused on adopting our offerings while simultaneously improving our cash management. Let's take a look at what's going on and then drill into some of these stories. For Q1, non-GAAP revenues were up 31% year-over-year to $11.6 million. In mid-March, very quickly, North America moved to working from home and GTY was able to swiftly adapt to working remotely. We were focused on the health and safety of our staff, and we continue to work with our teams on their work environment. We've increased the number of virtual team meetings and overall connection and communication with our team. We don't foresee trade shows and conferences returning in 2020, and our sales and marketing teams have adjusted quickly to create virtual conferences and webinars with our prospects. In fact, our webinars are busier than ever. Our implementations are being done remotely and have continued without delay.
This has been an abrupt change, and I want to take a moment to thank the GTY family for adapting so quickly to the new environment. Our staff has continued to service our customers at the same high level of quality they have come to expect. I'm very proud of the GTY team.
As I've mentioned earlier, government organizations and their technology were not prepared for the shift to remote work. And we've seen a number of prospects that have realized the need to modernize and move to the cloud solutions. In some cases, their systems are not available remotely. In others, the bandwidth requirements to their on-premise solutions have crippled infrastructure. To help with this, all five GTY business units have launched the GTY COVID Emergency Response program, where a number of GTY products are offered free for a few months to allow our customers to move quickly to solve their infrastructure problems and prevent interruption of government services. More than ever, this crisis clearly underscores the need for government to move their functions into the cloud.
In mid-March, we started to see some of our prospects delay certain projects. We saw some of our Q1 opportunities push their decision dates out. We didn't see any cancellations and we're pleased that most of the opportunities that were delayed will close in Q2. We've also seen a number of escalations among certain customers as they raced to obtain stimulus grants and modeled out different budget priorities. Cloud-based software will be invaluable for the public sector in terms of efficiency, security, transparency and having more advanced, lower-touch software to help governments operate.
We expect government offices will have a greater appreciation for the value of cloud solutions and will move up the time frame for their digital transformations as a result of the current crisis. It's early. But so far in Q2, we're seeing a mix of deal delays and some acceleration in our business units. I'll share these dynamics with you as it's a great view into how municipalities are dealing with the new COVID demand as well as illustrates how GTY products are part of the daily working for public sector. These examples also illustrate the difficulty of providing guidance at this point in time. There are so many moving parts and little in terms of standardized protocols across North America.
With that, our permitting software, which is sold by Open Counter, will see some slowdown given the lack of government ability or priority to issue permits. Looking forward, we're seeing different planning strategies by our customers. Some cities are reaching out, wanting more products to help move permitting services online, and some cities are cutting all non-essential products and services to prioritize jobs.
For payment software, which is sold by CityBase, some of our revenue is transaction based and will see some impact. Government payment transactions are temporarily down due to factors associated with shutdown. For example, San Francisco has delayed business tax deadlines. There are fewer tickets on parking violations and a decline in taxi revenue. This means transaction revenue will be delayed or in some cases lowered until everyone returns back to work. As standard city transactions return, so should CityBase revenue.
For the evergreen citizen payments, such as taxes, which will have to be paid, CityBase offers an online payment function to municipalities in a safe, cash-based options using ATM-like kiosks. Interestingly, much of the population still pays in cash, enhance the cash of counter staff member at the City Hall. With COVID, there is less desire to have cash exchange hands, and we've seen heightened interest in our outdoor kiosks for citizens paying municipal bills such as taxes and tickets. During the shutdown, we've adopted to be able to remotely ship and install these external payment kiosks, which enable cities and towns to receive payments without needing to open up the counter at City Hall.
Moving to our procurement platform, which is sold by Bonfire. Bonfire's revenues were up in Q1, but the pace of new bookings have slowed down. Procurement teams that weren't prepared have realized they need to move to a cloud platform. Our COVID Emergency Response program, which is offering Bonfire free for 90 days, has already been committed to by more than 40 agencies. This includes state agencies, federal government agencies, K-12, municipalities and healthcare, with many more in the pipeline. These new clients are ramping up quickly, thanks to self-service onboarding tools like Bonfire Academy, which trains new users via video, quizzes and interactive guides. Average time to first project is now within a week of training. This is twice as fast as usual, which is important since COVID sites have an urgent need to get up and running.
We are seeing many encouraging signs in the acceleration toward public sector digital transformation, driven by the urgency for the government to act on elements such as COVID-19 grants and the need for cloud-based revised budgets.
For eCivis, our grants management software, there has been a marked increase in demand. Payees are communicating with urgency, realizing it's on them as opposed to the federal government, to make decisions regarding their funding. Notably, hundreds of state or local entities have contacted us for eCivis software under the COVID Emergency Response program. Here are a few examples from within the eCivis business. In a memo from one of the largest cities in the U.S. to its county offices, they called out that it's "imperative that they capture, leverage and secure funding to combat the COVID-19 crisis and track it in eCivis to help identify federal state and philanthropic ramp opportunities." They are using eCivis to track the name of the funding agency, whether the money is in an advance or claim reimbursement and whether the funds are subject to federal single audit. Two other large states are doing the same, state wide. One is directing all HUD dollars on eCivis, another is working for a turnkey COVID funding package to all state entities receiving money from the state. We saw a large increase in demos in the back part of April and some fast track requests for proposals.
We're also receiving notable inbound requests to team up with GTY from large tech companies to offer eCivis as their government customers are also expressing urgent need for grant software to support COVID stimulus with short run times.
Lastly, traffic on eCivis' website in April, which includes virtual presentations and stimulus-oriented blog posts, have more than doubled from Q1 levels. E-mail open rates are up and gov tech virtual meeting attendance is way up. Our budgeting software grew nicely on balance. Our mid-market team is finding prospects more willing to talk, and we're experiencing a significant increase in our webinar program participation. The market seems more engaged in general as they focus on cloud-based budgeting so they can model alternative COVID scenarios. The Number 1 focus for our budgeting unit is to help customers revamp their budgets. Just like the 2008 recession, budgeting was critically important as everyone is focused on creating multiple scenario plans.
In total, we've adopted by doing sales webinars, virtual focused programs, remote demos and accommodating payment customers still dependent on cash transactions. As I mentioned earlier, we can now remote ship and install external payment kiosks. We're having conversations with highly engaged prospects and experiencing some general urgency from certain government offices. We expect many of the deals that were pushed out in end of March will close in Q2.
Another early indicator is that, so far, churn rates look about where they've been historically. We're working to keep as many renewals going as possible. Our customer success teams are being proactive with our customers knowing that in some cases, customers may wish to delay renewals.
Let's switch over to the operations and cash flow side of the business. There are four cash-based priorities we're hyper-focused on right now. They are as follows: first, revenues. Our models contemplate that some Q1 bookings were pushed to Q2. We've anticipated lower Q3 bookings as governments adapt to having lower budgets, which may delay some projects. We expect some of our customers using COVID response offering will decide to move on to our full subscription in the second half of 2020. For service deliveries, so far, we see minimal delays in implementations, and the good news is that we're able to complete all of our implementations remotely. Our churn rates are consistent with historical averages. I'll have John cover the cash management and collections in his section of the call.
As we saw the effects of COVID-19 in mid-March, we swiftly took cost-cutting actions by the end of the month, including layoffs, while doing everything we could to keep as many staff as possible. Most of our leadership team has been through jolting economic changes in the past, such as the dot-com crash, 9/11 and the 2008 recession. We are aware that swift and deep changes aimed at lowering variable costs while protecting and boosting financial flexibility are key actions to make. At the same time, we're in the business for the long game, and we are working to ensure that we uphold our values with all of our stakeholders. We know the hardship when our staff jobs are lost. We value the knowledge and experience of our team. We've got a lot of options at our disposal to further reduce costs while also being appreciative of how important it is that we take care of our team members. Working with our business unit leaders, we will be creative in our task of retaining talent, while being diligent with costs. I believe these two objectives can be met and do not have to be at odds. Ultimately, one [Phonetic] of our top objectives is to get to cash flow breakeven as quickly as possible, and we aim to do this while respecting the value that our people bring to our company.
As I shared in my opening, profitability and a strong balance sheet are among my management cornerstone priorities. During the quarter, we increased our financial flexibility, reduced fixed and variable expenses and strengthened our liquidity position. As we look at our recurring revenue, bookings, backlog and strength of our business units, we believe we're on solid footing for the year. We believe revenue growth for GTY is still likely even within this pandemic, albeit at lower levels than originally anticipated and with some level of recovery factored into the back half of the year. We will keep you updated throughout the year.
John will now review our cost reduction activity, our Q1 financials as well as our forward planning assumptions. On to you, John.
John Curran -- Chief Financial Officer
Thanks, TJ. As TJ mentioned in his remarks, we are withdrawing our guidance for 2020 as a result of the uncertainties associated with COVID-19 and the resulting economic slowdown. However, our current expectations are that we can continue to grow our business in this difficult environment. Our models show revenue growth of 10% in our worst-case scenario and greater than 20% in our current base scenario. Combined with our recent cost reductions, we see significant improvement in our EBITDA and cash flow performance this year. In our base scenario, we expect to achieve positive cash flow in the second half of the year, excluding severance costs.
Moving on to our financial results for the quarter. Our GAAP revenue was $11.3 million in Q1 of '20 compared with $8.0 million in Q1 of '19, an increase of 42%. On a non-GAAP basis, revenue was $11.6 million for Q1 of '20 compared with $8.8 million in Q1 of '19. From a non-GAAP revenue perspective, we saw year-over-year revenue growth of 31% for the first quarter. This is slightly below our original expectations for the quarter as we did see some delays in deals closing and service delivery in the early days of the crisis.
Turning now to our operating expenses. We saw our total GAAP operating expenses and non-GAAP operating expenses decrease by 53% and increase by 2%, respectively, compared to Q4 of '19. Non-GAAP sales and marketing expenses were up by 19%, driven by the full quarter impact of our investments in incremental sales and marketing resources that we added in Q4. Our G&A expenses decreased by 6%, and our R&D expenses decreased by 2%.
Our first quarter 2020 GAAP operating loss narrowed to $16.5 million compared with $42.6 million in Q4 of 2019. Our first quarter non-GAAP operating loss increased slightly to $5.7 million compared with $5.4 million in Q4 of '19, driven primarily by higher operating expenses.
As TJ referenced, we took immediate actions to lower our cost base as a result of the pandemic. Taking a look at our operating expenses, our total GAAP operating expenses were $23.3 million for Q1 of '20 and included a restructuring charge of $3.5 million. Restructuring charge is entirely people-related costs associated with a 10% reduction in our workforce. Of course, we reduced our discretionary spending wherever we could to minimize the impact on our employees. However, given that salaries and benefits represent about 70% of our spend, it was still a material impact on our employee base. Going forward, we expect our total quarterly expenses to be lower by more than $3 million as a result of these changes.
From a cash perspective, we started the quarter with $8.4 million and ended with $8.1 million in cash. As announced during the quarter, we raised $11.5 million as a result of a new debt financing arrangement managed by UBS O'Connor LLC. From a cash outflow perspective, total spend was $11.8 million, with operating burn of $7 million, one-time outflows of $3.3 million and outflows for capital and other of $1.5 million. From a collection standpoint, we're seeing some delays associated with payments, but we don't see increased risk associated with bad debts at this time.
In late April and early May, we received $3.2 million in loans from the Paycheck Protection Program, which has allowed us to minimize the workforce reductions for 181 U.S. employees. In addition to these loans, we are looking into other stimulus programs in the U.S. and Canada as well as investigating other sources of liquidity to bolster our position. We will provide updates on these efforts in the coming quarter. Based on our current view of sales activity, our ability to implement our products remotely, the low churn rates we've experienced to date and our cost reduction efforts, we believe we have sufficient cash to carry us into 2021.
Now, let's take a quick review of our results for the business units. Budgeting continues to be a strong performing segment for us. Questica reported $4.1 million in non-GAAP revenue, representing 26% growth year-over-year and 5% quarter-over-quarter. Sherpa, our budgeting solution that specializes in large enterprise clients, reported $1.7 million in non-GAAP revenue for the first quarter. Given the size and complexity of the deals for Sherpa, revenue can vary from quarter-to-quarter due to service delivery timing. Sherpa grew 89% year-on-year and decreased by 4% quarter-on-quarter. Going forward, we will be reporting Questica and Sherpa together as our budgeting segment. As we brought the two groups together, we're going to market in a holistic way.
Bonfire, our procurement platform, reported $1.7 million in non-GAAP revenue, representing growth of 56% year-on-year. eCivis, our grants management platform, reported $1.5 million in non-GAAP revenue, representing growth of 17% year-on-year. Open Counter, our permitting platform, reported $600,000 in non-GAAP revenue, representing growth of 16% year-on-year. We brought on a brand-new sales team for Open Counter in Q4. And as expected, we're seeing the business return to growth this quarter.
CityBase, our payments platform, reported $2 million in non-GAAP revenue, representing growth of 11% year-on-year. As I mentioned earlier, we still see the ability to grow in 2020, but we are seeing our sales cycles and implementation timelines extend as a result of the pandemic. Due to the economic and social effects of COVID-19, and the uncertainty on future demand, we believe it's prudent to withdraw the 2020 financial guidance we provided earlier in the first quarter. We've provided some additional color on our current expectations for 2020, and we'll continue to update you as we move through the year.
Before we open up the call for questions, I want to summarize the key takeaways from our call. First off, we performed well in Q1 with non-GAAP revenue growth of 31%. Secondly, given our new streamlined organization and other cost reduction efforts, we expect to be cash flow positive in the second half of 2020 based on our current base model, excluding severance costs. Given the nature of our business model, we have other levers available to us to further reduce costs if we see further revenue reductions in the coming months. The challenges associated with working during the pandemic has highlighted some key strengths associated with our technology, including secure access from anywhere for our customers and the ability of our team to implement, operate and maintain our solutions remotely. It's also putting a spotlight on the value of our offerings for applications such as budgeting, finance management as well as efficiently and safely handling payments. Our team of six founders is committed, aligned and well experienced in periods of economic strain.
Lastly, we work to provide you with the data we're operating with at this time and the factors leading us to withdraw our guidance. At the same time, we've provided some additional color on our current expectations for 2020 and we'll continue to update you as we move through the year. With that, operator, let's open up the line for questions.
Questions and Answers:
Operator
[Operator Instructions] Your first question comes from Scott Berg from Needham. Your line is open.
Scott Berg -- Needham & Company, LLC -- Analyst
Hi TJ, John and Harry. Thanks for taking my question and congrats on a good quarter. I guess I have two or three here. TJ, let's start with the Emergency Care program. Interesting, I like how you are giving away products for free in the short term so that you can be a good lead gen tool. But what do you have for assumptions around stickiness of these potential customers going forward?
TJ Parass -- Chief Executive Officer and President
Hey, Scott, thanks for joining us today. So yes, that's a good question. It's something we've been asking each of the businesses are offering this program as we're going through it. First and foremost, I think we're highly focused on getting the 300 people who have signed up for it so far deployed and working on it and using the same process that we use for all our deployments, just making sure that we do a good job of getting it up and running, providing value.
In terms of stickiness, we've been modeling some different numbers. Until the period comes up where the free period ends, it's going to be a little hard to predict that. So we'll have to give you actual numbers, but we definitely expect number of these will convert over.
Scott Berg -- Needham & Company, LLC -- Analyst
Got it. Helpful. And then I don't know if TJ or John wants to take this question. But in terms of the cost restructuring and the operating model that will generate free cash flows in the second half, excluding any restructuring costs, how are you guys looking at kind of longer-term growth in the business and the ability to invest properly? I certainly understand that COVID-driven environment creates a kind of a wider growth range here, we'll call it, 10% to 20% or more. But as you look out to '21 and '22, does that operating model restrict your ability to accelerate that growth rate as the current macro issue subsides?
John Curran -- Chief Financial Officer
Yes. Scott this is John. I'd say given our current model, we should be able to grow faster than our expected 2020 base case rate when we're beyond COVID. We have sufficient sales capacity. We're kind of haircutting productivity this year because of the pandemic, but we have a good team of salespeople. So I think we can do certainly north of the 20%, 25% we're predicting in our base case.
Scott Berg -- Needham & Company, LLC -- Analyst
Got it. Helpful. And then last question for me is on lead gen activity. I know this is a sector that does a lot of lead gen that's based on different conferences and trade shows. And TJ, you mentioned that a number of them have been canceled this year, and I agree very little, if any, will likely be held. But how do you replace that? You talked about some of the virtual opportunities that you're having. Do you think that can actually replace the same number of opportunities as you look out over the next two to four quarters?
Tyler Radke -- Citigroup Inc. -- Citigroup Inc.
Yes. That's -- I think we'd [Phonetic] be tracking those numbers as they're happening, pivoting over to -- it's not just like virtual webinars. Obviously, our grants company, eCivis, is really busy right now. So we're going to be deploying some of our sales staff over there to help them out. We also rolled out products like Pardot from Salesforce to do some -- more improved e-marketing. So there's quite a few things that we're pivoting around to. To say it'll completely replace what's going on, that's hard to tell you until we see the numbers coming in. I will tell you the trade shows and conferences have been traditionally a good source and place to meet people, but they don't add a lot of opportunities. They're part of what feeds in.
Scott Berg -- Needham & Company, LLC -- Analyst
Great. That's all I have. Thanks for taking my questions.
Tyler Radke -- Citigroup Inc. -- Citigroup Inc.
Thanks Scott.
John Curran -- Chief Financial Officer
Thanks Scott.
Operator
[Operator Instructions] The next question comes from Tyler Radke from Citi. Your line is open.
Tyler Radke -- Citigroup Inc. -- Citigroup Inc.
Hey. Thanks a lot. And good morning everybody. Maybe I'd just start in trying to understand the puts and takes around the base case. Obviously, I understand that you're removing guidance given the uncertainty. But if we were just to assume that you were to kind of fall -- revenue growth was to fall into that 10%, 20% range, what -- maybe help us understand what the bigger drivers of that reduction from the initial range were? Is it projects that are getting pushed into next year? Is it maybe lower consumption revenue on some things like payments or in the permitting business? Or is it -- or a reduction in some of the workforce that you've done? Maybe just help us understand what the bigger factor in driving that lower revision is?
John Curran -- Chief Financial Officer
Yes. So thanks, Tyler. Right now, if we look at kind of our experience since the pandemic started, and so we've got about six or seven weeks of experience under our belt. I'd say the first or the primary driver is things stretching from a sales cycle perspective. So we're experiencing things taking longer. The good news is we're -- we can still close business, right? So we're still booking deals. But the logistics of getting deals closed is taking longer. So I would say that would be kind of one of the primary drivers. You mentioned transaction part of our business. We are seeing lower volumes, certainly during that time frame. So that's also a factor; I'd say less material than kind of the longer sales cycle on the new bookings. I don't believe headcount reductions are a major factor. There was some impact on our sales and marketing teams across the business. But we still have sufficient sales capacity, but I would say that it's really the timing. Another factor we see out a couple of quarters is the potential impact on our customers' budget. So we're expecting our customers to be under some pressure as they deal with the impact on their spending associated with COVID as well as revenues as they're deferring tax payments and the like. So we're -- it's a pretty big variable in our mind that we factored into our model later in the year.
Tyler Radke -- Citigroup Inc. -- Citigroup Inc.
Great. And then you mentioned you did make some headcount adjustments to lower your cost base this quarter. Where were those headcount adjustments made? And what's kind of your revised hiring plan? Are you going to move back to onboarding people in next quarter? Or how are you thinking about just the progression of hiring through the year?
John Curran -- Chief Financial Officer
Yes. So to answer the first part of your question, the headcount reductions were spread across the functions, if you will. We had some in our cost of goods sold, sales and marketing, R&D and G&A, it was pretty well distributed across the functions. It's a little heavier on some of the R&D roles, but not materially different. From a hiring perspective, we have no hiring in our plans for the remainder of the year. We will certainly revise that if we see better growth and the opportunity to put some more capacity in place from a sales and marketing perspective, but our current plans are no hiring.
TJ Parass -- Chief Executive Officer and President
Yes. I think just to add to that, Tyler, we're really focused on retaining the staff we've got. We have a lot of amazing talent, and we want to come through this with the staff we've got right now. So if, for any reason, we had to look at reducing some of our costs, we'd be looking at alternatives and letting people go. So we've to actually put together some options if that were to happen. And -- but the way we're currently modeling, we don't need to do anything further.
Tyler Radke -- Citigroup Inc. -- Citigroup Inc.
Great. Thanks a lot guys.
Operator
There are no further questions. I'll turn the call back over to TJ.
TJ Parass -- Chief Executive Officer and President
I just want to say a quick thank you to everyone for joining us today, and have a great day and stay safe. We'll talk to you soon.
Operator
[Operator Closing Remarks]
Duration: 38 minutes
Call participants:
John Curran -- Chief Financial Officer
TJ Parass -- Chief Executive Officer and President
Scott Berg -- Needham & Company, LLC -- Analyst
Tyler Radke -- Citigroup Inc. -- Citigroup Inc.
