Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Adam Holt - Morgan Stanley.
Adam Holt - Morgan Stanley
My first question is about, Zach, to touch on some of the comments you made at the end there. It sounds like some of the leading indicators in your business started to improve towards the end of the quarter. Could you talk a little bit about, number one, sort of what the assumptions are underpinning the Q2 guidance with respect to the macro? And then I guess the other question would be outside of the leading indicators did you actually start to see some of the in-quarter indicators get a little bit better maybe at the end of March?
Zachary Nelson
Yes, I think certainly the in-quarter indicators. March finished fairly strongly and we also, going beyond in-quarter into this quarter, April was quite - I guess we'd call it quite strong. So those two data points definitely helped in terms of the outlook for the year.
In terms of the Q2 forecast, Q1, of course, impacts the revenue that we're going to see in Q2 and so the bookings were not quite what we wanted them to be there, so that's being factored in. The loss of the Japanese revenue also comes into play in Q2. But April, I think, both in terms of the business that was closed as well as in terms of some of these other indicators - lead flow and, more importantly, conversion to prospect - have me feeling pretty confident.
Now of course the big question always is conversion of prospect to customer and of course that's been really the challenge since the economic downturn happened was that conversion. And that conversion rate has bounced a little bit, you know, depending on the quarter. Q3 of last year was really rough. Q4, we had a very good close to the year. And then we stepped into Q1.
Now Q1 is typically seasonally down for us, so some of this was expected, some of the change from Q4, but it was certainly greater than we expected and I think that was probably due to the macroeconomic climate as well as customers beginning to look at their environment as they retrenched for the coming year and perhaps slowing down their purchase cycles as they tried to get visibility into what was going on in their markets in much the same way that we were trying to get visibility into what was going on in our market in the first quarter.
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