Medallia Inc (NYSE:MDLA) Q2 2020 Earnings Conference Call Transcript
Sep 05, 2019 • 01:30 pm ET
[Operator Instructions] And your first question comes from Kash Rangan with Bank of America. Your line is open.
Hey, guys, congratulations on your first quarter as a public company, superb results. Leslie, question for you with respect to the new customer count that comes in very, very strongly and Roxanne, you talked about RPO growing also very, very strongly. So relatively when the company went public and certainly the message was it, look, this is an accelerating growth story. How much more confidence do you have in that overall hypothesis based on the customer ad trends. And what seems to be really very, very solid RPO had in the quarter. Does that leave you feeling just about on par with the confidence that you had at the time of the roadshow, the certain things in the quarter as they unfold with respect to these two counts that make you even more confident than you were at that point. And thank you so much. Congrats.
Great. Thanks, Kash. Great questions. So I think the other -- after several aspects to that, the partner business is really new, the mid-market business is really new and we see traction, just come back from the tour of Latin America where out of 20 odd meetings, I had CEO meetings with some of the biggest companies in Latin America. And we are clearly seeing as the platform story -- the modern machine learning customer experience transformational story and it's exciting. I'm more confident, I feel great about our prospects as we've been adding sales people at a decent clip [Phonetic] rates is getting the [Indecipherable] and having more sales people and not leverage the channel.
And I'm quite pleased with the mid-market progress, it's pretty clear that our product has applicability across the range of spectrum strata size in our customers. So I'm very pleased and then the new leadership in APAC and EMEA is new. We need to see that unfold, those are strong businesses for us, but we're expecting some improvements on turbocharging from that leadership side. We feel even more confident and I'm very pleased to be back at work and I'm taking the opportunities. I think competitively, the distinction between us and the survey players is becoming very marked, that's very clear to me. So I think I'll stop there.
So Kash, I wanted to comment on RPO. So RPO was very strong in the quarter and were at 52% is current. But one of the things I do want to highlight for you from an RPO perspective, as we have some very large long-term contracts and when we renew multi-year contracts that are several million dollars, you will see fluctuations in our RPO on a quarterly basis. But with that said, I am extremely pleased with our performance and we are very focused on a 25% to 30% SaaS revenue growth rate on a long-term basis. And we think that is something that is achievable and we're executing towards.