Earnings call transcript: Planisware Q4 2024 shows strong SaaS growth

Planisware (PLNW) reported robust financial results for the fourth quarter of 2024, driven by significant growth in its SaaS revenue and a strong net cash position. The company’s stock rose by 2.22% following the earnings announcement, closing at $27.14. With a market capitalization of $1.9 billion and an impressive one-year return of 32.2%, Planisware’s focus on AI innovation and strategic market positioning contributed to its positive performance and outlook. InvestingPro analysis shows the company maintains excellent financial health with an overall score of 3.15 out of 5, indicating strong fundamentals.

Key Takeaways

• SaaS revenue increased by 24.1%, making up 78% of total revenue.
• Total (EPA:TTEF) revenue growth was 17.4% in constant currency.
• Adjusted EBITDA rose by 24%, representing 35.2% of revenue.
• Planisware introduced a new AI-powered unified platform.

Company Performance

Planisware demonstrated a solid performance in Q4 2024, with significant growth in SaaS revenue and an improved net cash position of €176 million. According to InvestingPro data, the company maintains strong financial metrics with a current ratio of 2.55 and minimal debt, as evidenced by a debt-to-equity ratio of just 0.09. The company’s strategic investments in AI and product innovation have bolstered its market leadership in project management solutions. The defense sector, particularly in the U.S., remains a key growth area, supported by a breakthrough partnership with Northrop Grumman .

Financial Highlights

• Revenue: €52 million, a 21% increase from the previous year.
• Adjusted EBITDA: 35.2% of revenue, up 24% year-over-year.
• Net cash position: €176 million.
• Recurring revenue: 89% of total revenue, up 60 basis points.

Outlook & Guidance

Planisware projects revenue growth in the mid to high teens for 2025, with plans to maintain profitability around 35%. The company anticipates a revenue acceleration in the second half of the year, driven by continued investments in AI capabilities and the introduction of an annual licensing model for private infrastructure deployments.

Executive Commentary

CEO Loic Sautour emphasized the company’s long-term commitment to innovation, stating, "We are here for the long term, and we want to continue to fuel the long term." He also highlighted Planisware’s role in helping customers adapt to a changing world, noting, "Planisware helps customers to react and adopt a changing world."

Risks and Challenges

• Elongated sales cycles for new customers could impact revenue growth.
• Inflation indexation in contracts may affect pricing strategies.
• The competitive landscape in AI and project management solutions remains challenging.
• Geopolitical tensions could influence defense sector spending.

Q&A

During the earnings call, analysts inquired about the impact of elongated sales cycles and the potential monetization of AI capabilities. Planisware’s management addressed these concerns by highlighting their strategic focus on AI development and the implementation of inflation indexation in most contracts to safeguard revenue streams.

Planisware’s Q4 2024 earnings report underscores its strong market position and strategic focus on innovation, setting a positive tone for future growth. While trading at premium multiples with a P/E ratio of 48.9x, the company’s solid execution and financial health metrics suggest continued momentum. For detailed valuation analysis and expert insights, explore the comprehensive Pro Research Report available on InvestingPro, covering over 1,400 top stocks with actionable intelligence for smarter investing decisions.

Full transcript - Planisware SAS (PLNW) Q4 2024:

Conference Operator: Good day and thank you for standing by. Welcome to the Planisware Full Year twenty twenty four Results Conference Call. At this time, all participants are in a listen only mode. After the speakers’ presentation, there will be a question and answer session. To ask a question during this session, you will need to press star one and one on your telephone.

You will then hear an automated message advising your hand is raised. I would now like to hand the conference over to your speaker today, Loic Sautour, CEO. Please go ahead.

Loic Sautour, CEO, Planisware: Thank you, and good morning, and thank you, everyone, for joining us today on this call. This is Loic Sautour speaking, and I am here with Stephanie Pardot, our CFO. Well, I’m going to share some very exciting updates about Tennis World Q and A, where we continue to follow our strategic roadmap of sustainable and profitable growth, continuously paving the way toward our ambition to be the accelerator of the project economy and the number one provider of multi specialty project and portfolio management solutions. In 2024, we welcomed new customers, we’ve grown our team, and we have hit record highs in revenue. Now none of this would have been possible without the dedication, the energy and the passion of our seven fifty Spanish variants.

I would like to thank every single one of those Spanish variants for delivering an outstanding, recurring year. At Pennisware, we have a clear goal to build a strong relationship with our clients, and together, we contribute to a greener and more digitally advanced world. So to them, I also want to express my gratitude and more broadly to all of our stakeholders participating to our success. Thank you. Now let’s dive into the key figures for the year.

Despite significant global uncertainties and concerns in the macroeconomic and geopolitical context, our long standing relationship with our clients, also fueled by many new clients, enabled us to achieve a robust 17.4% revenue growth in constant currency, totally in line with our 17% to 18% objective. Our revenue growth was driven by the continued success of our SaaS operation. This trend drives our activity mix with an increasing share of recurring revenue and geographical diversification, which helps maintain our growth resilience. Our more recent pillars are also strongly contributing to this growth. In parallel, our adjusted EBITDA increased by 24%, representing 35.2% of revenue.

This improvement of 180 basis points compared to the 2023 margin was mainly due to the mix effect with our most profitable operation growing the fastest. We exceeded our 24% objective of 34% and reached the level targeted for 2026, effectively delivering our medium term profitability ambition two years ahead of schedule. Similarly, our current operating profit increased by 21%, reaching EUR 52,000,000. Our adjusted free cash flow growth was particularly strong at 24.5% resulting from improved profitability and a strong cash conversion rate of 84.5%, higher than our targeted 80%. This leaves us in a very strong financial position at year end with a net cash position of EUR176 million and no financial debts.

Now let’s take a look at our revenue performance by geography. The geographical diversification of our group has proven to be a valuable asset, helping us to navigate any cross slowdown in specific regions by compensating with growth in other regions. In 2024, all key geographies contributed to Planis for revenue growth. So their contribution varied through the year. North America, representing 44% of our total revenue in 2024, played a significant role in our year end growth with a 19% increase in the second half of the year.

This came after a slower start in the first half, where elongated customer decision making process is impacting non recurring activities and implementation services, resulting in a 15.6 growth. Now overall, North America achieved a 17.3% growth for the year, thanks to substantial cost selling, up selling with existing customers and of course new customer wins. Europe, in contrast, saw a decent growth of 18.1% in the first half of twenty twenty four, driven by strong dynamics in Germany in particular. However, revenue growth slowed to 18.4% in the second half due to macroeconomic uncertainties, political concerns, especially in France and challenges in key verticals like automotive, primarily for new customers. As a result, Europe achieved a 14.5 growth for the year.

’24 growth in APAC and rest of the world of 44% resulting from very strong commercial momentum across Japan, Singapore and The Middle East. Now let’s take a look about our revenue evolution by pillars. 2024 is demonstrating again that our multi specialist approach is really paying off, helping us to stay resilient. Our newer pillars are ramping up at efficient cost drivers, balancing out the slower performance of our historical product development and innovation pillar, which was more impacted in the second half of the year by elongated customer decision making processes, especially in the automotive industry. Despite this, PD and I remain our principal pillar in 2024, contributing 53% of our revenue and being the main driver of our growth.

The Project Control and Engineering pillar, which support production team in the industry with sophisticated products, plants and infrastructure like aerospace and defense, Energy and Utilities, Manufacturing and Engineering and Life Sciences worked very nicely. Although it’s still a recent addition for Planisware, it represented 20% of our 2024 revenue and posted a fantastic 35.6% growth, thanks to the successful rollout of our specialist solutions in North America. The IT government has a combination pillar with 17% of our 2024 revenue. It grew by 20.1% driven by continuous cost selling to planisphere clients needing to accelerate their digital transformation. Project business automation represented 9% of our 24% revenue and confirmed its ramp up with a solid 17% revenue growth.

Now I’d like to move on to more qualitative aspects of our performance in 2024. One of our product achievements is our breakthrough in The U. S. Defense industry with Northrop Grumman Corporation (NYSE:NOC), a leading global aerospace and defense technology companies. They have chosen Flannysware Enterprise as their enterprise wide program management system.

We are honored to partner with them as they continue to implement digital technologies across their business. Flannicwear is playing a key role in their digital transformation efforts, streamlining portfolio management technologies across the entire product life cycle. Flannicwear’s reputation is also bolstered by broad recognition from third party industry analysts, which helps us attract and retain customers. In 2024, the high quality, reliability and usefulness of our solution were further confirmed. Gartner (NYSE:IT), Rhein, Penisware as a leader in its adaptive project management and reporting Magic Quadrant for the third year in a row and recognized us as the Soleil Customer Choice for Strategic Portfolio Management and its Voice of the Customer for the second year.

With our new AI powered unified platform, which I’ll detail a bit later in the presentation, we are shaping the future of portfolio management. We are staying at the forefront of innovation, delivering the next generation experience with the new version of our platform, keeping us one step ahead of the competition. In terms of sustainability and social responsibility, twenty twelve efforts were recognized with a gold medal from Ecovadis, the Great Place to Work certification for all of our offices and a satisfying this call for our first trading by CDP. These distinctions, I’ll explain it for our rapid progress on ongoing commitment to building a more responsible society. They encourage us to continue innovating, while retaining the highest environmental and ethical standard.

Let me zoom in on one industry that is definitely accelerating, the defense industry. It is a massive sector with around 2,500,000,000,000.0 in yearly global spending and about 40% of that in The U. S. Alone. This market is not only large, but it’s also growing at the mid to high single digit rate with an increasing share of software spending.

However, players in this field who are on our actual or potential clients have very, very specific needs. For security and for warranty driven, they need to run their mission critical solution on their own infrastructure rather than through cloud based SaaS. To address this, Venezuela introduced a new delivery mode that combines the best of both worlds. The security of private infrastructure and with the support possibility, the long term relationship and the recurring revenue similar of the one from that delivery. This relies on licensing our technology annually through multi year agreement.

We are reporting this line of revenue for the first time in 2024 within our recurring revenue under Planisquare SaaS model since we initially delivered such licenses in Q4 twenty twenty four. Telesco anticipate that this innovative delivery mode will be particularly relevant for companies with specific security and warranty requirement and will drive additional growth for the additional growth for the group. Now before transitioning to Stephanie, I would like to develop a bit on our new AI powered platform, shaping the future of strategic portfolio management. Like many others, we do believe that in a full year yield, up to 80% of users will interact with applications such as Tennisware by voice or by chat and we have prepared ourselves to support that revolution. To do so, being already on a single unified platform has been fundamental.

We further developed our semantic metadata model, which contains physical database objects that are abstracted and modified into in memory logical dimension. This makes our platform future proof for increased AI usage with the deployment deployment of AI agents that need the semantic model to perform. We clearly set ourselves apart with our unified platform. As you can imagine, other players in the industry who are trying to stitch together several acquired technology can deliver what we are delivering to our customers. This increases the barrier to entry in our business, where being a specialist is paramount.

So thank you. Now, Stephanie, the floor is yours for the financial. Thank you.

Stephanie Pardot, CFO, Planisware: Thank you, Loic, and good morning to all. I will turn my presentation with the revenue reduction by revenue stream for 2024. As usual, in order to reflect the underlying performance of the company independently from exchange rate fluctuation, I will focus my comments on revenue reduction in constant currencies, which means applying 2023 average exchange rate to 2024 revenue figures. Anyhow, FX CapEx was quite slow in 2024, representing only EUR 200,000.0, almost fully related to the appreciation of the euro versus the Japanese yen, while non intuitively, the year end appreciation of the U. S.

Dollar has no effect in the yearly average exchange rate. As expected, the key driver of the revenue performance was of that model, which represented 78% of the total revenue and grew by EUR 27,900,000.0 or plus 24.1%, fueled by new customer wins as well as continued expansion, we think our large installed base. Our test model is made of staff and hosting revenue, up by 27.1%, support activities, which grew together by 18.1%, including a healthy 26.1% in subscription support and annual licenses, our new report in line of revenue that I mentioned just before, which contributed for $1,100,000 in Q4 twenty twenty four. Still in the recurring part of our revenue profile, maintenance grew by 1.8% over the year. I now move to the non recurring part of the revenue, which represented 11% of the total revenue and slightly declined by minus 1.7% in 24% as anticipated.

Then it was sold at peso licenses for $7,500,000 mostly to establish customer for extension of formal lease on licenses, which represented 4% of the total revenue as guided. These new licenses will generate additional recurring maintenance revenue in the future. Oppositely, implementation services faced a longer customer decision making process, primarily for new logos in France and in The U. S, leading to our revenue contraction by 2,100,000. I would like to illustrate how this translates to the evolution of our revenue mix of our more and more recurrence.

Over the year, recurring revenue made of self operation and maintenance of perpetual licenses represented 89% of total revenue, two sixty basis points higher for the previous than for the previous year. The SART itself represents 78% of total revenue, while it was 74% in 2023. Turning to the gross profit. I’m proud of the continued disciplined approach to the expenses implemented in the group with the 150 basis points of gross margin improvement, both last year leading to a gross margin of 72.7% of revenue. This performance was driven by business mix evolution as I just detailed and in particular, thanks to the combined 29% of growth of the Patent Trusting and annual license line, the mostly profitable change of the revenue.

The next slide presents the repetition of our operating expenses, which is very much consistent with the one observed during the previous period, totaling 44% of the group revenue. At 12% of the revenue, R and D expenses consist primarily of staff expenses directly associated with R and D teams as well as amortization of capitalized development costs and the benefit from the French tax credit are reflecting the well the group ambition for the continuous product development and leadership. The efficiency of the R and D increased the benefit for the deployment of AI tools, boosting the group’s ability to provide innovative products and support solutions. In 2024, capitalized development costs amounted to BRL2.5 million compared to BRL2 million last year in 2023, represented 14% of revenues stable compared to 2023. G and A expenses growth reflects the recent hiring met to strengthen the global functions to contribute to the growth of the business and international expansion of the group.

In the future, as the company continues to scale up, G and A is expected to progressively decrease as a percentage of revenue. And finally, at 18% of the revenue, sales and marketing expenses translate to employee related costs in the sales force and marketing team to support Sanofi (NASDAQ:SNY) expansion in its domestic and international marketing sustain in the future to keep strengthening our leader on the market position. As a result of the gross margin improvement and the consistent OpEx levels, the adjusted EBITDA margin, which is 35.2% of the revenue year on year improvement by 180 basis points. In absolute value, adjusted EBITDA reached EUR 64,600,000.0, up by 23.7% year on year. Moving to the cash generation, now which has been strong over the year with the 84.5% conversion of adjusted EBITDA to adjusted STF.

This level is slightly above our circa eighty percent twenty twenty four objective that we consider to be the normative conversion rate to expect in the coming years. Looking at the detail of the conversion of the EBITDA, change in working capital was positive by EUR 2,500,000.0 and in line with the structural slightly positive change in working capital expected every year, thanks to the growth of the subscription contract deal in advance of service vendors. The CapEx, which amounted to $5,500,000 represented 3% of the revenue, which is in line with the usual CapEx spending and with the expected labor for the coming years. And finally, tax pay increase reflects the growth of our flexible profits. The cash generation over the year coupled with the payment in April of a dividend on 2023 results led to a solid cash position of $176,000,000 at the year end, 23.5% higher than a year ago.

I remind you that except use liabilities related to offices and data center facilities, which amounted to $70,000,000 and small amount of bank overdraft, Planiswap does not have any financial debt. Finally, in this context of strong financial performance and subject to the approval by the shareholders, the group will pay a dividend representing 50% of its profit for the period, in line with the historical dividend policy. This would represent EUR 21,400,000.0 or EUR 0.31 per share. This concludes my presentation. Thank you for your attention.

I now give the mic back to Larry to conclude.

Loic Sautour, CEO, Planisware: Yes. Thank you, Stephanie. Well, I will conclude with our 2025 objectives. Taking into account our strong commercial pipeline on one hand and uncertainties in the timing of contract start and the evolution of sales cycles lands on the other hand, we have set the mid to high teen range for our results guidance. We also intend to maintain our profitability around 35% and to keep delivering a cash conversion rate of circa 80%.

So thank you very much for your attention. We are now ready to take your question.

Conference Operator: Thank you. We will take our first question. And the question comes from the line of Frederic Boulan from Bank of America. Please go ahead. Your line is open.

Frederic Boulan, Analyst, Bank of America: Hi. Thank you very much. Good morning, Ulrik and Stephanie. A couple of questions, please. First of all, if you can spend a minute on the demand environment, I mean, I think you flagged some areas of strength but still a number of uncertainties.

So it would be good to have a bit more granularity in terms of any markets where you’re seeing incremental pressure. I mean, in particular in autos, do you expect spend to recover or still to remain under pressure in the medium term? You flagged strong growth in The U. S, being interesting to hear a bit more about some of the geographical diversification. Second question around EBITDA.

So you’re already at your 2026 targets, so well done. But the question is what’s next for your guidance in 2025, there’s no further improvement. So why would operating leverage not continue to work going forward? And then maybe lastly around Gen AI, I mean, interesting comments around your unified platform. It would be interesting to understand a little bit how you think about monetizing Gen AI.

Is it just part of the feature? Or you think there is an opportunity to extract additional revenue from that? And anything you can share around the productivity side for yourself in terms of coding and better internal efficiency? Thank you very much.

Loic Sautour, CEO, Planisware: Yes. Thank you for the question. Well, the demand environment, it still remain I think we really have to separate the existing customer from the new customers. With the existing customers, the need to react to their own market change, the need to our project to handle that is definitely there. And that’s why not only we have a very high recurrence in our revenue, but we are expanding because we really help our customers to do more and more with Penny Square.

So for the new customers, that’s where we see some sales cycle that we’ve seen that last year and we still see that now some sales cycle that are elongating. There are some uncertainties politically, geopolitically that some companies are willing to see what will happen with the tariff or not in order some decisions. From the geos, definitely, there is some it’s dynamic in The U. S. There’s still some I mean, the same comment applies for between existing customer and new customer, very dynamic with existing customers, new customers, deep end.

Europe, clearly, there are some concerns about the politics in France and Germany. There are the economies are not striving, and we can feel that. The second question about our EBITDA, we have reached 35%, but clearly, we maintain our guidance at this level because we don’t want to alter the long term. We are here for the long term, and we want to continue to fuel the long term. And so that’s why we are maintaining our guidance at this level.

And about the JNEI, so we continued so as you as you remember, our funding team, they come from AI. So it’s really AI has always been top of mind. And now more and more with the little things that we see on the AI, we are leveraging that. So we bring a lot of capabilities with AI agents directly in 20 square. The fact that we have we already built on a single platform is key.

A single data model is key. And do we monetize that? Yes, we do. Depending we have multiple AI features that we bring to our customers. When there is this know how that where we can leverage the customer data in order to help the customer with its prediction, for example, this is something that we monetize because that’s clearly this is clearly a gain for our customers and yes, it is something that we monetize.

On our side, we also leverage our own solution, our own 20 square. We’ve seen some gain in our R and D, but also in how we support our customers because we do live at Tenniswear, it’s helping us to be more efficient into what we do.

Gustave Froburg, Analyst, Berenberg: Perfect. Thank you very much.

Conference Operator: Thank you. We will take our next question. Your next question comes from the line of Gustave Froburg from Berenberg. Please go ahead. Your line is open.

Gustave Froburg, Analyst, Berenberg: Good morning, everyone. Thank you for taking mine also. A few kind of follow-up questions and then some adjacent ones. The first question is on the demand side picture as well. Could you talk a little bit more about how you view the phasing of the year and whether or not you expect a big acceleration in second half or if you need a big acceleration in the second half to hit the kind of guidance that you’ve given for the year.

And then I have a question on annual revenue, the new revenue line that you’ve published. Could you explain just that line again and how and why it’s considered recurring and maybe how it’s different to SaaS? I didn’t quite get that. And then final one also on AI. We talked a lot about it.

Good to hear the qualitative color, but could you also quantify the impact that you’ve seen from GenAI on your business, both on the sales line and on the cost line, please? Thank you.

Loic Sautour, CEO, Planisware: Okay. Maybe I’ll start with the second one about the annual revenue because it will help me with the first question. So we have the demand from some customers to use the Planisquare technology in their own private environment. And sometime within their private environment, they also need for their own customer needs, they need to actually silo even the same technology. And so clearly, those customers, they cannot rely on a traditional public SaaS offering.

They need to acquire that in a very confined and siloed environment. And that’s why in order to support that, we have worked on this annual license. So what is the difference between the annual license and the SaaS? It’s the hosting. The hosting that is done on a private infrastructure for annual license and as opposed to SaaS, you’ll see it’s done in our own architecture.

In terms of contracts, the contracts are actually very similar in the sense that they are multiyear agreement in which there is an annual fee, either an annual license in the case of this annual license that we report it or typically an annual SaaS fee in the in term of a SaaS delivery. So in terms of the demand side for the phasing, actually, with a little bit of understanding on this annual revenue and the recurring of this annual revenue, Yes, we do expect that the second half of the year will be accelerating a bit more in terms of revenue. And AI, it’s very up to comment on the qualitative aspect a bit with numbers that we can share publicly. We know that we know and we have been assured the impact, but those are not a certain number that we can come at here.

Gustave Froburg, Analyst, Berenberg: Okay, very clear. Thank you so much.

Conference Operator: Thank you. We will take our next question. Your next question comes from the line of Ines Malouf from BNP. Please go ahead. Your line is open.

Ines Malouf, Analyst, BNP: Hi.

Pavan Taswani, Analyst, Citi: Yes.

Ines Malouf, Analyst, BNP: Perfect. Thank you for having me. So I have two questions on the full year 2025 guidance. First, what are the building blocks to give you confidence to reach it? I’m not sure if you’re thinking about cross selling new business And are you seeing any risk to the level of subscription as customers might be cutting headcount?

And my second question is about geography. So Europe has closed a lot in H2 versus North America. Are you embedding any European growth recovery in 2025 to reach your mid to high teens guidance? Thank you.

Loic Sautour, CEO, Planisware: Can you please repeat the second part of your the second question, Felipe?

Ines Malouf, Analyst, BNP: Yes, of course. So Europe has slowed a lot in H2 versus North America. I was just wondering, are you embedding any recovery for European growth in 2025 or in H2 twenty twenty five to reach your full year guidance?

Frederic Boulan, Analyst, Bank of America: Okay.

Loic Sautour, CEO, Planisware: So the first question is about our forecast. So what is very what we need to remember is a lot of our revenue growth come from existing customers with a net retention rate of 121. I mean, this is a testimonial to that. This is a testimonial that’s for our customers. It’s really key.

It’s really mission critical for them and they expand with Penny Square. So with the level of customer that we have, with the recurring revenue that we have, with the net retention rate that we have, we do have actually a very good confidence and the predictability for the future. The variability will come primarily from new customers. And as I stated before, our commercial pipe is actually very strong, but the timing is everything. And depending on when new customers time is really what it impacts.

Are we part of your question is like it’s cool like some companies are reducing their workforce. Some of our customers are doing that. And we are afraid that it will impact us, not necessarily. That’s the thing about Planisware is that we help our customers to react and adopt a changing world. And because of that, sometimes they need to reduce their employees.

They need to reallocate resources. They They need to redistribute all of the work across the remaining workforce. And for that, Planisware is really helping them. So that’s why very often we will see that with our existing customer will be a bit countercyclical because as they need to react and adapt react to the changing world, then any plan is worth to elapse. And finally, I got the question right about the Europe slowdown at the tail end of 2024 and if we see any recovery.

We have seen that on new implementation. We had commented last year, there has been some deals that took some time to be signed. And several of those deals have been signed at the end of the year and we switch we are implementing. So there is a bit of recovery for us on the implementation side of our dealers we implement to customers.

Ines Malouf, Analyst, BNP: Okay. Thank you.

Conference Operator: Thank you. We will take our next question. And the question comes from the line of Pavan Taswani from Citi. Please go ahead. Your line is open.

Pavan Taswani, Analyst, Citi: Thank you. Good morning, Luke and Stephanie and thanks for taking my questions. Firstly, could you maybe give us an update on pricing and whether you finished introducing the inflation indexation to all the customers now? And then secondly, you called out the opportunity in defense. Can you maybe help us understand your current exposure to the sector and where you are with this journey?

And then lastly, I saw that churn picked up to 2.2%. Any color you can share on that? Okay.

Loic Sautour, CEO, Planisware: Yes, pricing indexation, as you remember, we have pushed that in our contracts when especially after inflation started to kick in strongly. And now, yes, the vast majority of our contracts are indexed to some with some indexation close depending on where they are geographically. CPI type closed in North America. And now that has been done, the inflation is much lower than it has been in the last few years. And who knows where it will go.

Concerning the defense exposure, clearly, it’s a sector for us that is fast accelerating across the world. That is clear. Now remember that we are very diverse in terms of industry. So as a result, our exposure strictly to the defense is not extremely high because of the diversity that we have in our different customer set. 2.2 churn rate, it remained an extremely low churn rate in the industry.

It did go up a little bit and the reason for that is I mean, several reason for that. When there have been some companies that have been cautious in their spending and it’s more affecting our line where some companies where it’s more like a departmental approach that they may have churn. And on the larger churn that we’ve seen, it’s actually primarily for companies that have been acquired or actually that have disappeared. And that’s why it did go up a little bit. It has been a while for some companies out there and that’s why those have impacted our churn rate a little bit.

Yes, it remains a very, very good churn rate and we are very proud of it.

Pavan Taswani, Analyst, Citi: Great. Thank you.

Conference Operator: Thank you. This concludes the question and answer session. I’ll now hand back for closing remarks.

Loic Sautour, CEO, Planisware: Well, thank you. Thank you for your interest and all of the questions. We’ll be happy to see some of you in the next days. Feel free to contact Benoit if you have any additional questions that you would like to address. Thank you.

Stephanie Pardot, CFO, Planisware: Thank you.

Conference Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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