Question-and-Answer Session
Operator
(Operator's instruction) Your first question comes from the line of Tom Roderick - Thomas Weisel Partners.
Tom Roderick - Thomas Weisel Partners
I wanted to ask you just in terms of how you are constructing your guidance for the rest of the year. I know you made the comment, you both the comment around assuming no change in the environment from what you saw here in Q1 for the rest of the year. So, I guess as we think about the sort of being in the third quarter now in a row where the environment has gotten tougher for everybody out there and you have tampered your forward numbers, your forward guidance here again just by a bit, what gives you comfort that we will see some stability in that environment that gives you no change and as you kind of look at that into your pipeline, what does that mean for the size and quality of your pipeline? Thanks.
Rick Rudman
Well, I think part of what we are looking at is just the monthly trend that we saw through the Q1 quarter and we actually saw I think things open up a little bit tougher which is what we have heard other people experienced as well. So, we started to see actually within the quarter things kind of stabilize and improve a little bit as we work through March. And the rest of it really, Tom, is just based on our outlook from this point forward with the visibility that we have into Q2.
Frankly beyond Q2, you are probably right. I mean, there is somewhat limited visibility I think into how the economy is going to be performing in the second half of the year but I think we have seen enough in Q1 here now with the outlook into Q2 that gives us some confidence in the guidance that we have provided.
Tom Roderick - Thomas Weisel Partners
And when you talk about things getting better as you came in the margin, it sounds like maybe even given the extra few weeks into this month; can you talk about what gives you some added comfort? Is there less discounting going on out there than had been with previously necessary or folks just signing up on deals more quickly? Are there particular segments that are opening up for you more positively?
Rick Rudman
Yes, well, we have really seen an enormous amount of changes really in our discounting policies. What I was referring to in my script was we did see our average selling prices go down primarily because clients would either select fewer seats or fewer modules as opposed to just getting discounts off of our subscription. So, it is not really a discounting issue. But once again, I think it is probably just characterized as macroeconomic impact across the Board and once again, we just saw it a little bit stiffer in the beginning of the quarter and starting to be consistent in loosening up towards the end of the quarter. That combined with our outlook for Q2 gives us our guidance.
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