Okay, well, thank you everyone for joining us today. So my name is Andy Nowinski. I'm the software analyst at Wells Fargo, and it's my pleasure today to introduce you to the management team from AvePoint. So, we have Jim Caci, the CFO, Mario Carvajal, the Chief Strategy Officer, and Jamie Arestia, Head of Investor Relations, with us today. So thank you guys for joining us today. This is a webcasted session, so thank you all for those of us that are joining in on the webcast. And for those in the room, if you have any questions, feel free to raise your hand. I'm happy to incorporate them. I'll just repeat the questions for those listening in on the webcast today.
So first, why don't we, you know, for those, those listening in and, and those in the audience that are maybe newer to the story, can you just give us an introduction on AvePoint?
Sure. Want me to start?
Yeah.
Andy, thank you. Thank you for having us, and thank you everyone for attending, as well as thank you to the Wells Fargo team. Our story actually is quite an interesting story. I was very fortunate to have joined the founding team 16 years ago, so I'll tell you a little bit about that journey. We've been around for about 20 years. We're a software organization, software business. Today we bring to market a cloud-based platform, and the goal for us has always been to help customers extract more value from the corporate knowledge base, the set of information that a lot of organizations rely on to actually power their business. We concentrate on three main areas. The first is help the organization optimize the SaaS environment.
We work with organizations extensively that are building this digital workplace environment, and as they build the environment, there are always challenges in how to actually address the complexity of apps. So our platform has a set of applications, integrated apps, that really solves the operational challenge and drives efficiency. One of the major goals for us is to reduce cost. The second category is, we work extensively to make sure we're adding a layer of protection to the information, to the data set that actually is going through that digital system. And we bring to market a number of products that help manage the entire content through its life cycle.
Whether you need to apply additional controls for access, whether you need to consider how do you think about unstructured data from a records management perspective, or whether you really are concerned with the regulatory environment that your business needs to adhere to, how do you actually ultimately apply retention schedules to data? So the platform is really designed, at the end of the day, to help you collaborate more effectively on that corporate knowledge base that you have. Our organization also is. We're, we have a global footprint. We have been very fortunate from the start to really think about the customer really in the context of the global environment.
We have a lot of multinational organizations that do business with us, and as a result of that, we also address a lot of regulatory requirements that are quite different from geo to geo. And then the last thing I'll mention is, we have an opportunity to also bring to market the product through a very strong partner ecosystem. We have a lot of managed service providers that are working to really take over the IT operations for a business, and so they benefit when they actually can bring our application stack to power their service back to that end customer. So we feel we're well positioned for a lot of what's really happening now, especially with organizations that are looking to, you know, extract more value from their data set.
So it sounds like your value proposition revolves around optimizing costs, whether it's delivered through a managed service provider or just run by the organization itself, and then it sounds like some of a data security, data governance type play as well, too.
That's correct.
Those two areas?
That's correct, Andy.
Okay. And how can we just dive a little bit deeper and maybe on, on first on the optimization side? How are you helping customers optimize costs or,
Sure. So there's a number of ways we do it. When you actually are working on the collaborative environment, you're probably working with a number of apps that, you know, tweet your chats, your meetings, your unstructured data. Organizations struggle often to address the sprawl challenge that happens. And sprawl really is when there are too many different sites or workspaces that are hosting your data. Over time, this can slow down the organization, especially when they need agility, as their business is changing. So the way we help reduce the cost is our application really helps you, number one, operationalize all of the changes. So we help a lot with change management of configuration on these applications and these workspaces. And the second way is we also do a lot of vendor consolidation for companies.
In our Confidence Platform, we actually have a set of capabilities in our Control Suite, which is one of three, and that is designed to help you manage the entitlements, which means that if you're subscribing to a content service provider and you acquire the business, how do you reconcile license entitlements? And how do you do that while at the same time move the data over from a user that no longer is accessing the application? So this cost consolidation, for us, really helps us address a number of factors that the organization typically is challenged with, and they're trying to solve it many times with just home-built solutions.
You mentioned vendor consolidation on that part of it. What are. Are there some sample vendors that you're frequently consolidating out of that environment?
Yeah, typically, so as I mentioned before, buy versus build is, is one of the, the first, I guess, you know, competitive, conversations we have. Building these applications homegrown is a challenge. You have to really think about maintaining the APIs that are working across the, the third-party, content service providers. So that's one. The others are the applications that are helping you do provisioning of the digital workspace. There's a lot of privates that are building, tools that maybe will handle one aspect of that life cycle. How to provision a site for you to store some of your data, for example, in, let's say, Microsoft 365 SharePoint.
How do you do that more effectively if you are thinking about provisioning, and you're also thinking about how do you end-of-life that site when the content is no longer being accessed? So we will come in and displace that vendor because we offer you not just the provisioning piece, but we also offer you the controls in the application to do the end of life. And so the organization typically says, "If I work with AvePoint and I have the applications to manage the optimization, I could also perhaps deploy some additional controls to protect the information," and then there will be another vendor displacement there, and it could be the kind of vendor that's doing backup and recovery, for instance, for the data.
So we'll come in and say, "We have a backup and recovery BaaS service, like a Backup as a Service component, that also integrates with our provisioning engine." And so it's a win-win for the customer. A lot of it is being serviced from the same platform, so when it comes to ensuring that the, you know, security of that platform has already been adhered to, the way that organization likes to function, it makes it easier for them to buy the next product, from our platform.
So it sounds like, do-it-yourself solutions are certainly one that gets ripped out, and then others are the point products vendors-
Yeah, point solutions.
-that maybe don't have the breadth of the platform that does the security side as well as optimizing.
That's correct.
I gotcha. What about, Jim, why don't we, why don't we switch gears here? You know, Q3, your Q3 results came out earlier this year. Just why don't you just start off with just the highlights of the takeaways from that quarter?
Sure.
The results.
Thanks, Andy. Yeah, we actually had a very strong third quarter. We're really pleased with the execution of the teams, really across the board. For us, we really focus on three key metrics in the business: ARR, revenue, and operating income. So if we look at ARR first, we grew 25% year-over-year. We added over $14 million of incremental ARR in the quarter, which is up about 14% compared to the same period last year. So really strong performance in the ARR category, which for us is really our primary metric that we look at, how are we growing that ARR in the business? So we're really pleased with that. The second metric is revenue, and with revenue, we grew 16% year-over-year.
And if we look specifically at our SaaS business, our SaaS business is up 40% year-over-year. So again, we were really pleased with the performance of revenue year-over-year. And then the third metric is our operating income metric. And this is an area that we've really kind of focused on this year in terms of profitable growth. That was a key kind of messaging we started the year with, and we've been able to execute on that really for the first three quarters of this year, delivering strong operating income in Q3. We delivered about 12% of revenue as operating income, non-GAAP operating income. And again, that year-over-year is about a 900 basis point improvement over you know, over last year.
So again, for us, the key takeaway for the quarter was strong quarter. Teams are executing well. We understand there's still this macro uncertainty, so we see some nice momentum in the business, but we also understand there's definitely still a lot of uncertainty out there.
So solid growth on the net new ARR side, mid-teens growth on net new ARR. Is there any more visibility you can provide in terms of maybe some of the products that drove some of the net new ARR that Mario referenced earlier?
Yeah, I think, you know, what Mario touched on is key. I think we even heard it in the keynote this morning, that, you know, customers, and we're a customer, too, of many IT products, are looking to consolidate vendors. It's more efficient, number one, if you don't have to take multiple vendors through your procurement process. And so we see that in our own business, where I'm trying to consolidate vendors and reduce the number of people I'm dealing with. We see that in our customers. They are consolidating vendors. Fortunately, as Mario alluded to, we have a platform play. We're not just one point solution. We have multiple products. We've seen some of that consolidation amongst our customers, which has been a benefit to us.
So some of the cost optimization products that Mario referred to, we saw nice, strong growth in those in Q3, both from new customers as well as existing customers, which again aided some of our nice NRR growth in the quarter. So that was really strong. So again, we see, you know, kind of the whole breadth of the platform, you know, really taking advantage of some of the consolidation we see, and that's been a boom for us.
I have one perspective that can help you kind of get an appreciation for the product play. Many organizations are looking for the business analyst to actually build workflows. Microsoft has been very successful in shipping out the Power Platform, which is a way for citizen developers to get involved and not have to spend time with dev teams to build applications. The Power Platform has a few challenges when organizations look to deploy it, and one of those is that if you come and democratize the way apps are built, you have to make sure that by the time you deploy them into production, they actually have the right governance controls in place. So we have a product called EnPower, which actually is part of our Control Suite in the platform.
This past quarter, we had a number of organizations that were very pleased to take EnPower and actually use it to apply those governance controls so that you can really get the return on that investment for Power Platform. To give you a stat, I was out recently with one of our enterprise clients, and they'll have about 50,000 Power Platform apps out in the environment. So when you think about the impact that can have, if it's not well-governed, it could be, you know, pretty detrimental to an organization. So these are the kinds of solutions that we think will help the organization be more efficient in, you know, achieving the success they want when they invest into some of the Microsoft products or Google products for managing the digital workplace environment.
Jim, you talked about the macro, as-
Yeah
Being potentially a headwind this year. I heard about it this morning as well, too. I mean, the macro is still tough. But I guess, you know, your products certainly help customers save money, and if cost optimization's been a clear focus for people, for enterprises that are in the cloud, how has the macro been, I guess, more of a headwind versus a tailwind, even though you're helping them save money?
Yeah, I think overall it's still been a headwind in terms of, you know, if we just go back to really Q4 of 2022, I think that's when we were all talking about, you know, the expectations for 2023, right? That, A, Q4 was challenging. You know, 2023 looked like, hey, there's some uncertainty. We talked about elongated sales cycles at the end of 2022. We talked about further scrutiny. We talked about budgetary cycles. So all of that stuff we kinda discussed at the end of 2022, and I think it set most of our expectations for 2023. It surely set ours in terms of how we thought about guiding for 2023.
If you looked at our deal cycles today and how things are moving through the funnel and how long it takes them to get through the funnel, what we saw in 2023 is pretty consistent, that it's longer than it was in 2022, but we haven't seen it get discernibly longer. So we've used the term on a couple of our earnings calls of stabilization. We used it in Q2, we used it in Q3, where we said, "You know, things don't appear to be getting worse in terms of the elongation. That seems to be stabilized." Then even the budgetary scrutiny, it feels like now we're in this cycle, and many of you are probably doing the same thing we're doing in our business. We're scrutinizing all the dollars we spend. So I think that is continuing.
I do think we've benefited from that, as I said before, so I think that's been a plus. But, you know, I think we're gonna continue to see that uncertainty. I don't think it's going away anytime soon. I think people are still focused on managing every dollar they spend, which again, in the long run, I think is a positive for us. But I still think there's a ton of uncertainty as we, you know, finish out Q4 here and look to 2024. I think the macro environment hasn't changed too much. And, but again, we're, we're encouraged by what we're seeing and the momentum we have in the business, but again, I would say, balancing that with what we're seeing in the macro.
Let's just talk about Q4 real quick, 'cause, you know we've talked to a lot of resellers over the last few months, and I think pretty definitively last year, Q4, most resellers were expecting a budget flush, and they didn't see it.
Right.
It didn't come through.
Yeah.
And, I'm sure a lot of companies were assuming the natural enterprise budget flush and didn't get that either, and o f course, that influences your 2023 guidance f or the coming years. So, like, this year, it does seem like the budget flush. We might actually get one this year. Like, what are you guys seeing in terms of discussions around a budget flush from your sales force?
Yeah, you know, it's a great point. You're right. We didn't see it last year, and the conversations I'm having internally with our teams and even customers that I deal with, I'm not expecting to see a huge flush. I'm just not hearing that. Now we're still a month out a nd lots of decisions, as you guys know, in the software industry, get made in the last two weeks of December. So you know, it's funny, somebody was asking me just a little while ago about, "You know, you're a month and a half into the quarter, don't you know exactly where you're gonna be for the end of the year?" And it's like, well, you know, a lot of decisions get made in the last month of the quarter in software, and particularly the end of the year, in the last two weeks.
So I think we're still gonna see that, so we could be pleasantly surprised where some of that does take place. But you know, I'm still planning, and the guidance we provided you know, assumed we would not see that because I think it's prudent not to predict that. We didn't see it last year, and the indications, at least, that we've seen so far and some of my peers, we're not expecting to see that.
Maybe I need to add another comment that can maybe give a little bit more color to what Jim is saying. There is, however, a sort of pivot towards identifying the right types of solutions to secure the information set. I think every organization is now planning for 2024 to be a year where they start thinking about the incorporation of AI capabilities in their strategy. And so while on the one hand, there are many organizations that are looking to reduce costs, there's also an interest in saying: Where do I prioritize my spend so that I could be in a position where I could be more competitive next year with my business? And that always points you back to the data estate.
And so for us, we're working with our field teams to really identify the projects that are gonna be top priority at the beginning of 2024, so we could continue to, you know, almost address any challenges we would see with the macro environment. So again, I think there's always an opportunity, right? Whenever there's chaos or, you know, this kind of paradigm shift we're kind of going through, there's an opportunity to say, "Well, what's the priority gonna be now for 2024?" We're fortunate that most of the work that we do is oriented in the data estate of a business. How do we bring more value to the data you already work with and use on a day-to-day basis?
So as long as we can, you know, bring more high attention to the go-to-market motions we're gonna have in that area, we feel we could still get access to, you know, budget priority for 2024.
That's a good segue. I wanted to ask about that. So this morning during the keynote, we obviously heard a lot of discussion on AI and on how you roll out LLMs and all the infrastructure stack that you need to support those.
Yep.
But one thing I don't think we necessarily talked about as much was the data security element of, in that infrastructure stack that you need to support that.
Yeah.
So how do you, how do you think about AvePoint being positioned in terms of that discussion, as it relates to, you know, securing the data that an LLM reads and securing the data that an LLM presents to in its response or in its answer to a user?
We actually are already prioritizing our efforts to help you improve the classification system that you have in place. What we've seen already with a few clients earlier this year, where we started doing some pilots, that they were embracing Copilot, for example, as part of a prior preview, is the challenge with the data not being properly curated. It devalues any kind of training model you wanna put on top of, let's say, an OpenAI LLM. So we are helping the companies by saying, "Well, we can actually apply a learning model to your classification schema, and to help it improve over time, so that the quality of your corporate knowledge is giving you the best results when you're actually using, let's say, a Copilot-type solution." And we believe that that's gonna be fundamental to any strategy you have.
The second part of it is also the opportunity for us to add additional controls to the, to the sharing of information. We're, we're doing some work with Microsoft, where already they've done a pretty good job in securing any kind of Copilot capability, so that information that you're actually sharing within your organization stays within your organization. On top of that, we're gonna deploy additional controls to help you manage the way in which that information is being shared with outside parties. And so once you have those controls in place, plus the classification component, you're kind of already on a, on a good ground to start maximizing any of the, you know, learning models that you're either using from a third-party service, like OpenAI or Llama, or any that you're actually building in-house.
And then the last thing I'll mention is, it's super important for also you to have a way to understand the citations of the generative AI capabilities you're deploying. And once again, having a proper structure of data set is gonna be critical to that. We just shipped a product in September called Opus, which actually introduces an AI classification engine that applies to all of the unstructured data that's, you know, part of your workforce. So once an organization uses that, they could be, you know, well-positioned to improve the security posture of the data set.
It sounds like you guys have a lot of ways to play the AI element, or the data security element of AI. But I wanna touch on Microsoft. So obviously, the speaker this morning had a lot of positive commentary on how Microsoft is, and their whole ecosystem of solutions is really starting to resonate with customers, and I'm sure we'll hear more at the lunch keynote today with Microsoft about that message.
Yeah.
But I would love to just touch on your... You have a long-term relationship with Microsoft, as well. Maybe just talk about how that, how that works, and-
Yeah. Sure. Yeah, I just got back from Microsoft Ignite two weeks ago.
The partnership with Microsoft for us started when we were looking at building applications for enterprise content management. It just so happened that one of the main applications that they now use as the backbone to all of their Office 365 or the modern workplace portfolio solutions is SharePoint. So we've always been a partner that helps organizations really maximize the potential of the investment they make into the app, into the Microsoft solutions. Present time, we are, you know, continuing to do work now to augment more of our capabilities by integrating with their Azure services. Our cloud platform runs on Azure, and part of the, the opportunity we see there is to... We've already been shipping products to market with AvePoint, with Azure Cognitive Services, but we have an opportunity now to tap into some of the work they've done with OpenAI.
So the partnership really is one where, we help solve problems that they're not actually solving with out-of-the-box tooling. We position 13 solutions on their marketplace. That also forges the partnership, where some of the Azure customers they have can buy our solutions from the marketplace, and that, that applies, you know, Azure consumption credit to their MACC agreements. So this is a relationship that really benefits us when we go to market, and at the same time, when you're a customer and you're using AvePoint and, and Microsoft, you're really achieving the maximum potential of, of both, both applications or both investments. Yeah.
Sounds like a strong partnership.
Yes.
Why don't we shift gears a little bit, and let's talk about the competitive landscape, not the partnership landscape. I know you've mentioned that you take out DIY, and you take out point product solutions, but how has the competitive landscape maybe changed, with AI putting more of a focus on the data security, you know, products?
Yeah, I think for us, because we're a platform play, there are a number of point solutions, point competitors, actually. We see definitely a change in the narrative of applications that are more designed to do infrastructure-type backup and recovery capabilities. I think for us, it's just more bringing attention to the fact that all of the work we've done in that category of solutions for a platform is really designed to address the challenges in protecting confidential data, sensitive data.
So while some of the competitors there are repositioning the value proposition of a traditional backup and recovery solution, for us it's more of, well, we can do that, but we could also talk about the entire information lifecycle and give you the tools that or the capabilities that can manage the data through its entire lifecycle. There are also a number of point solutions that we compete with that are, you know, traditional players bringing customers into cloud solutions, more of a migration type conversation. We began early on building a set of connectors to migrate data from different systems, both legacy as well as cloud-based systems. But those solutions for us are really just part of the bigger picture.
And the way we will typically compete there is, it's not just about migrating the data, it's about, you know, what do you actually do with that data state? So back to what I said earlier, classifying the data and making sure the data is ready for use. You know, we feel that we have enough differentiation when we position the platform value proposition. Certainly, that helps when we're in conversations with customers and partners. And for us, is really just following really what the customer is looking for, which is more of an integrated solution coming from one platform.
Have all the recent ransomware attacks had any, a positive impact? Have you seen an impact from those as it relates to the need for backup?
Yeah, sure.
Data backup.
So the answer is yes. There are a number of incidents that took place where organizations were really concerned with having additional copies of the data, as well as having another vendor, not the primary vendor that's producing or providing the SaaS service, do the backup and recovery. So it brings every time there's a ransomware attack or any kind of data breach, it gives us an opportunity to remind customers through a lot of our thought leadership content, that you know, it's critical for you to have solutions that are agnostic to the cloud service providers you're using. Solutions that also give you a lot of control over where and how to store that data, as well as solutions that give you storage capability to reduce cost, all of which are capabilities we provide in our SaaS service.
That's great. Okay. So maybe in the remaining few minutes we've got left, I would love to talk about just some of the financial metrics of AvePoint. So at your March Investor Day, you talked about, you know, being a Rule of 40 company, and I think you mentioned earlier today already the operating margin, nice expansion on the operating margin you saw. You also talked about, you know, being profitable on a GAAP basis by the end of 2025.
Yep.
You know, how does that sort of compare to where we are today, and how are you getting there? How, how are you balancing revenue growth and, and this profit expansion?
Yeah, no, it's a great question, particularly in this environment. So when we think about Rule of 40, for us, it's two components: It's our ARR growth percentage year-over-year, and also our non-GAAP operating percentage, as a percentage of revenue. So those two kind of components make up our target of Rule of 40. So if we look at those for what we're guiding to in 2023, you're going to see ARR growth of 22% that we're guiding to, and that operating income as a percentage of revenue will roughly be about 8%. So we should be right in that 30% range. So we are on our way to getting to that Rule of 40. And for us, it's really a combination of those two things.
We think there's still room for continued improvement and leverage in the business to drive more profitability. So we think that 8% is not some sort of a high watermark, and in fact, in Q3, we were at 12%. So we do think there's room for expansion there. And then even the 22% ARR growth year-over-year, we do think there's room for improvement there. But again, those two components, we have some levers there, and our focus this year was on profitable growth. I think we've demonstrated that, and I think we're going to continue to look to leverage the business and improve profitability. And again, that's the piece we can control the most, right? In the uncertain macro, we have less control, maybe in terms of some of the growth, but we do have control over our cost structure.
Again, we're focused on that profitable growth, not only for 2023, but also going forward as well.
And then in terms of the, you know, just your net retention rates and your gross retention rates, it looks like net retention at 108%.
That's right.
Gross is right around 90%. Do you need those— Do you need to see some expansion, like your NRR? Do you have to get that up to the 120 range to get you to this Rule of 40 in two years?
Yeah. So, so what we've talked about is currently, gross retention rate is about 87%, and net retention rate is the 108 that you referred to. So in our long-term targets for both of those metrics, gross retention rate, we're targeting 90%+, and then for NRR, our target is to be between 110 and 115. So we think those are really good targets for us, and that helps us achieve the long-term target of or the 25 target of the Rule of 40. So that plays right into that, that strength.
And again, I think our biggest component of the growth in NRR is the improvement in GRR. Just those three percentage points alone in GRR improvement have a significant impact on the 108, pushes that up to 111. So again, I think we're in a good position in terms of the momentum we've developed this year in terms of hitting those targets. So we feel good about the long-term goals of getting to that 90+ and the 110+.
Have you given any sort of long-term target for your operating margin? I know we're at 8% today, but is that something that can be in the 20%+ range?
Yeah, we believe that, you know, we're in that 20%-25% range, you know, long term is within reason. Again, I think that comes from, you know, the operational efficiency that we've talked about on a number of calls where, you know, particularly this year, we focused on driving improvements. We have much more efficiency, both from sales and marketing and from G&A. We would expect to continue to see leverage from those, but not giving up on our R&D investments. We've set targets of R&D to be 10%-15% of revenue. This year will be around 12%-12.5%, so we're right in line. We don't expect to be kind of hitting our profitability targets by foregoing our R&D efforts. Quite the opposite.
We're investing heavily in R&D to make sure that we're, you know, a player for the long term, not just for next quarter or next year.
How does M&A change that? Do you factor in any sort of either dilutive impact from an M&A acquisition, or what is your strategy for M&A over the next few years?
Yeah, well, so from an M&A point of view, we did four, what I would call tuck-in acquisitions in 2022, very supplemental. We didn't do any yet in 2023. But M&A is definitely part of our growth strategy in terms of our capital allocation. We think of our capital allocation in three, really three vectors, right? One is investing in the business, which is a little bit of that R&D investment we talked about. Two is M&A, and three, up till now, has been share repurchases. You know, we've repurchased, you know, $36-$38 million so far this year of stock. You know, that's something that we've, we've looked at and said, you know, we're, we're gonna do. We made a commitment this year to do that, and we've done that. But M&A is clearly a, an opportunity for us.
We have a very strong balance sheet. We have over $200 million of cash on the balance sheet. We're generating cash. This quarter, we generated. or the first nine months of this year, we've generated $13 million of operating cash. So we are in a position to take advantage of that strong balance sheet, like a lot of people are not. Fortunately, we're in that position. We are looking at a ton of M&A acquisitions, literally every day. Mario heads up that group, and he can speak more on it, but we've definitely looked at a ton of opportunities. Haven't pulled the trigger on any yet in 2023, but it is a area that we want to use our capital to continue to advance.
We've got lots of investments in R&D that we're advancing the technology, but there are opportunities to, you know, buy versus build as well, and we're, you know, continuously looking at those.
If I could just add, I've always been curious, so you, you say, you know, you review a lot of pitches, which I think would be really interesting and fascinating to, to see on a daily basis. But what, what is it that when you, when you, when you hear a pitch or you see an idea like that would strike you as, "Yeah, like, I think that's something that we need," or like, "That's something that-
Yeah.
That's interesting," versus like, "Well, not really?
That's a great question. One of the – so there's a matrix we use to qualify the sort of. We take the lead in, and then we start saying, "Well, how much appetite do we have for it?" Interoperability, I think it's really important for us, the architecture that's been used in the tech stack. Especially now, I think – yeah, there's going to be an aspect of the industry that will shift a lot to more so to consumption-based or, you know, types of monetization models that are really looking at the transaction, and that transaction can only happen if there's interoperability. So interoperability is key, which is why we prefer SaaS-oriented type applications. That's one.
The other, of course, is, you know, how have they thought of solving the business case with an interface that really tells the story? Because going to market with a solution, there's, there isn't too much room, there's so much noise and attention to information that your go-to-market motion must be very efficient. And so if the story is hard to tell, if... You know, I have a technical background, so if it's, if I find that I have to really get into the tech stack to understand that narrative, then I definitely start getting concerned, and I start thinking, "We're gonna have to put a lot of muscle in the go-to market." So the synergies that we identified really are speed to market, interoperability, how fast can we integrate it into our platform?
Then once we integrate it into our platform, for us, as I mentioned before, our channel ecosystem has been growing, and the MSPs that we work with are eager and hungry for more API integration, so they can build their service economy. That's super important for us for our future growth. So, yeah, just at a high level, those are some of the things I look at, but it is interesting to hear, you know, you know, some of the ideas that are coming through.
That's great. Thank you so much. I know we're out of time here. Jim, if there's any thoughts you want to leave investors with as we wrap it up?
Yeah. Maybe it's just, again, we're really pleased with this past quarter. We see lots of momentum in the business. Teams are executing well. Despite the macro environment, we're still seeing lots of momentum, which is good for our business. Lots of great things coming down the road. We think we have a great equity story. Some of the things Mario touched on around the history of where we came from, we think is really compelling, benefits us well now into this next phase. So again, we think, you know, we've got great opportunities in the future. So, you know, we're excited about what lays ahead and, you know, we're excited to get back to work.