"we are off to a great start to the year.
We have demonstrated over the last couple of years that we are building a company for the long term, with a strong foundation comprised of next-generation, cloud-based platforms, a massive data repository containing holistic views of over 95% of the U.S. consumer population, intelligent applications, and analytical capabilities to drive products well into the future.
We are driven by innovation and our customers.
We are focused on AI implementation, or Artificial Intelligence, layering our platforms with machine learning so as to extract knowledge otherwise unattainable.
And, combined with the overarching themes we discussed, we have tremendous opportunities that lie ahead.
We are very well positioned for the rest of 2017 and thereafter."Customers
"we are seeing an increase in, not only those customers that want to deploy our products more broadly across their organizations, but also the scale of customer as we move up from smaller, early adopters to those customers that demand greater functionality to execute their daily workflow.
Today we now have 47 customers that spend over $1 million per year with us."Seasonality
"So we’ve discussed previously that the marketing side of the business performs well on the fourth and first calendar quarters and the risk management side of the business really performs well the first through third calendar quarters.
Looking at the overall business, if the marketing business represents a substantial portion of our revenue we do still expect seasonal pressure as the result.
However, we’ve layered on multiple strategic growth initiatives into our business model, both on the performance and information services side, and fully expect to leverage that growth over the next two quarters.Capital Allocation / Operating Leverage / Term Loan
"As we discussed our capital allocation strategy during our last call, and our ability to extract tremendous operating leverage from the execution of our business model, we wanted to position the company in a manner so as to seize upon the abundance of opportunities we have on our product roadmap, should we choose to from time to time.
In that regard, we secured a $15 million dollar term loan from our lending partner in the first quarter of 2017 on substantially the same terms as our existing debt.
With our expanding margins and continued strong cash flows, we expect deleveraging throughout the year, continuing to focus on strong organic growth.idiCORE Update
"We’re doing great in that business.
But, as I’ve mentioned previously - and believe me I wish I could give more transparency than I am. It’s just highly competitive. And we know our competition feels us, we are testing head to head with them with customers and winning tests on our data and we’re growing the business.
So I can’t give any metrics of onboarded users or customer adoption. But as I can tell you, that I mentioned in my notes, that we’re seeing continued growth in the subscription products; meaning the contractual revenue versus transactional.
And again, just to highlight for you and anyone else who is unaware from previous calls; that’s a reverse of what we’ve experience in the industry given where we are in the early stages of development.
We are getting customers that understand where we’re going in this product road map. And they’re wanting to lock-in in long term subscription contracts in order to lock in price and take advantage of the efficiencies that we’re bringing to them today.
We are, I can say, in fact winning larger customers than we were in the smaller early phases, smaller early adopters.idiCORE and Fluent Integration
"I can tell you that Fluent’s data is fully integrated into idiCORE. And we are very excited about that.Acquisitions and Creating Shareholder Value
"we’ve made it a policy really on not to comment on any acquisitions and the like.
But I will reiterate my comment, that I have made many times, we’re very intently focused on creating shareholder value and we will always be looking for opportunities if that expands the customer base, if that expands our technologies, or advances the road map.
And we’re especially interested in assets where they might be mispriced or misunderstood, where we can make that acquisition that we know it significantly increases shareholder value and is synergistic with the business."Product Roadmap for Next Several Quarters
"we have significant initiatives that we will roll out in the next two quarters, that we believe will have a very meaningful impact on revenue.
Full transcript HERE.
More COGT analysis HERE.
Disclosure: Long COGT
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