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Good day, and welcome to the SimCorp Q1 Report 2018 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to the Klaus Holse, CEO. Please go ahead, sir.
Thank you very much, and welcome to all of you that are dialing in to this conference call about the SimCorp Q1 2018 financial review.It's a little unusual timing at the -- almost at the end of a Friday, but there was -- our board meeting concluded and the alternative would have been to wait until after the public holiday on Monday in Denmark. So that's why the unusual timing of this.As usual, then, if you go to Slide #2, then you'll see the disclaimer that we have. That's all about the forward-looking statements and so on. For those of you who participated more than once, you will have seen this before. But for those of you who are here the first time, then please make sure you read this as it governs everything that is said in this meeting.If you move to Slide #3, you see the agenda for today, and that starts out with the Q1 highlights that I will do. And then we move on to Q1 2018 financial review. This will be done by Michael Rosenvold, our CFO. And then we move on to the outlook of 2018 that Michael will also do. And then at the end, we'll do a Q&A. The Q&A will be based on those of you on the phone, and we will also take questions from the web.With that, we move on to Slide #4, which is kind of the Q1 highlights, if you will. And Q1 highlight starts with a revenue growth of 23% and an EBIT margin of 26% as headlines there. Below that is an order intake of almost EUR 10 million, which is up more than EUR 4 million over last year. This is based on one new SimCorp Dimension customer and a number of larger add-on contracts that we signed in the quarter.Revenue growth, as I said, is 28.8% local currency. That translates into the 23% in reported currencies, so obviously, a little bit of headwind in currencies for the first quarter. In -- if we take out the acquisition we did, then this turns into 18% growth organically.EBIT for the quarter, EUR 23.3 million, an increase of a little over EUR 10 million over the first quarter of last year. Of course, SimCorp Italiana that we acquired in August 2017 accounts for some of this, almost EUR 5 million, and part of that is that, the SimCorp Italiana business, is skewed towards the first quarter, is that's where a number of the renewals of the contracts happen. We get a disproportionate baked amount of the SimCorp Italiana. Revenue and EBIT upfront [indiscernible] in the first quarter. So that's EBIT.If we then move to Professional Services, that is 21% growth over a good quarter last year. So pretty strong growth in our Professional Services business compared to also a good quarter last year, so quite good.Free cash flow was EUR 23.4 million, about flat over last year, a little bit up. 12-month rolling software updates, software updates and support, 6.2%. You will notice that we have renamed what we used to call maintenance to be called software updates and support, and that better describes what the product really is. This is, of course, customers implementing new versions of SimCorp with new software gone live that use this. And this is all recurring revenue, which is why we track it.So all I'd say, good first quarter but also a first quarter that is influenced by revenue coming from fourth quarter where we had a couple of deals that were signed, one existing customer, one new customer that was not taken as revenue. If you -- for those of you who were on the fourth quarter call last year, you will remember that we had order inflow that was not taken in as revenue that has now been taken in as revenue and then SimCorp Italiana having a disproportionate last year Q1, which is kind of what skews the numbers a little bit. But overall, a good quarter as we think about it.If we move on to the next slide, which is Slide #5, it shows the one new client that we got in 2018, METROPOLE Gestion in France, a front and middle office customer that I'll get back to in a little while as we get towards the end of the slide. [ I think ] I have a little more detail on that customer as it is a customer that use kind of the standard platforms that we're building.Moving on to Slide #6. Every year, we do 2 new releases. This year, we'll actually do 4 new releases of the software, once every quarter. The first release was done on February 1, and then a subsequent release, we've done on May 1. But this particular release, the 6.3, and that has a number of interesting opportunities for us and our customers.First of all, the new Alternative Investments Manager was launched, and this one -- which allows us to compete for customers that have a big part of their assets allocated to alternatives like private equity, real estate and direct investments, infrastructure and so on.This is part of the IBOR. So the investment book of records now is also capable of holding accounting for managing positions that are alternative in nature and not just more liquid investments. We think this is a good opportunity. We work with a number of customers on getting this in. They're implementing this at the moment, and there's a lot of interest in our existing customer base to get acquainted with this.Secondly, we have basically rewritten most of the collateral management that is in the system that's now released. This is becoming bigger, bigger challenges for many of our customers as collateral has been put up for all of the derivatives and also for the -- some of the other investments they're making. So we've really gotten a lot of work on this one and installed it both at a number of our larger customers and a few smaller customers doing very well.We've also built a new product that we call the Strategy Manager, so that's for Solvency II, helping customers better understand kind of how they align their liabilities with what they're investing in, so meeting the Solvency capital requirements and so on. This is an important part for pension funds and for insurance companies. So we think that's an opportunity to go back to those and sell this.Lastly, in 6.3, we completed the functionality for MiFID II. So that has all the pieces that is needed in this one to be compliant. And as I said, this was February 1 when this was released. Moving on to Slide #7. I'll talk a little bit about the Standard Platform. For those of you who've seen -- kind of been in this presentation before, we've talked about the move from us kind of moving from a client customization world to a world that is more standardized. In some ways, you can say what we have done in the past is that we've had a toolbox in terms of SimCorp Dimension. And then as we have started new client engagements, we have asked the client what they wanted. So it's been a ask culture in some sense where the customer has then been able to specify exactly what they wanted going through this. And then we've kind of built this. We've configured the system to do this.What we experience from customers now is that increasingly, they want us to take the knowledge we've got from more than 200 installations across the world and come back to them and say, "This is kind of the best practice. This is the best workflow for this. This is the best process for this. This is the best data. As long as you have that, you can have for this -- this is the best analytics you can have for this." And then as we do this, tell them how we think they should implement SimCorp. I mentioned -- and then the only way that they deviate from this to more customized configuration of the system.That's kind of the tech we're taking, we have had, as you've seen in one of our strategic investment areas over the last year. So that's something that is now moving forward.If you move to Slide #7 (sic) [ Slide #8 ] , you will also see kind of the business value of this. It's simpler to deploy, it's lower cost and it's lower risk and then also, the quality goes up for the customers as it becomes standardized and not something they need to do on their own. It also becomes easier for them to manage this as we go forward. It becomes easier to operate the system as well. So there are many benefits to this, and this is something that customers are asking for.If we then move to the next slide, Slide #9, this fits into what we call our global delivery model. So with this, we are able to deliver in a global way. We use the Standard Platforms, as you can see, as a -- one part of it that relies on the sort of standard components that we're building. Then it has kind of a delivery methodology associated with it. But then, that gets into kind of doing -- along with the project governance structure, it allows us to do more cost-effective delivery because more is preconfigured, more is standardized as we go.And then the supporting organization below this is a real global organization that also has near-shore resources that is lower cost, and by that, having a blended rate. That allows us to be much more structured in what we do. That gets us consistent results, gets more efficiently, gets on time and also on cost. So it's important for us that these projects are at a low risk, they're implemented on time and on budget. And that is what's happening now, which is also yielding very good customer references, allowing us to move on with the next customer as well.And then if we move to Slide #10. Then as I said, I will get back to METROPOLE Gestion. They selected SimCorp Dimension and is implementing this. Part of their decision was because of the Standard Platform. This is not the biggest asset manager in the world. But for them to have us come in and tell them what the right workflows are, what they get out of the box and so on, was quite important to them. So have we not had the Standard Platforms approach to this one, this would probably not have been possible to do.But now in the Standard Platform, we can actually go implement this in a very cost-efficient way and a very predictable way for this customer. And that will allow them -- as they say in the quote, it allows them a faster to market -- kind of get to market faster with the products that they have. So we hope we'll be able to support the growth strategy that the METROPOLE Gestion has. And as we get to the completion of this, we might report back to you in this [indiscernible].Moving to Slide #11. That's also a little bit a story of one of our existing customers that was signed in the first quarter as an extension of the current agreement, a Dutch company called KAS BANK that's been a customer of SimCorp for a while. And they have been hosting other companies or kind of been the custodian for other companies as well.And now they've decided to extend the use of SimCorp Dimension to a situation where they will be able to host the solution and manage the solution for other customers, which means that they become kind of a third-party process or an administrator, meaning that a customer for the first time or in -- with the SimCorp Dimension will be able to get a full package of front-to-back capability being delivered by somebody else; meaning that if I'm an asset manager or an insurance company that wants to run SimCorp Dimension but do not want to implement this, do not want to implement kind of the data governance, does not want to implement -- kind of keeping the [ eyeball ] off the data and so on, then I can make a contract with KAS BANK and KAS BANK can then deliver to me kind of a fully hosted front-to-back solution with always accurate data in it.This is something we are seeing interest in. We've done agreements like this with others. But this one is the first that really takes the front to back to a new level and we'll move on. We will probably see more interest for pieces like this in the market. And we're quite excited about that as it allows us to offer SimCorp Dimension to a group of customers that do not want to run the system on their own but wants to outsource the running of the system for somebody else.Our market survey says that's about 20% of the market that wants to operate this way, but that 20% of the market has been less accessible for us until we do deals like this one. So we're quite happy with it, not only for the size of the deal, but also for the future of the deal and the customers we give the access.With that, we move to Slide #12, which is the end of the presentation part that I will be doing. And we will be moving on to the first quarter financial review, which will be done by Michael Rosenvold.
Thank you, Klaus. I will start on Page 13 and of course, there will be a little bit of repetition from the key highlights, but I will go a little bit deeper with some of the numbers.So what Klaus said, revenue growth in Q1 was quite solid, up 23%. And -- but bear in mind, we had 2 things that you need to include in your analysis. One thing was, as expected, we did manage to revenue recognize the last ILS contract we made in Q4 and one additional license sales in Q1 2018, and that was effective -- as expected and that was also why we had it in our order book at the end of the year.Also as expected and also as we communicated in our annual report, in SimCorp Italiana, we do have renewals in the beginning of the year and thereby, revenue recognition is front-end loaded in SimCorp Italiana. That was why we didn't have as much profit in the 5-month period on the -- our ownership last year. But of course, we will have a greater impact in Q1 this year.And when we look at the margin, we went from 14% in Q1 2017 to 26% measured in local currency to 27%. And that was primarily due to 3 items. The strong revenue growth is basically within additional license sales and official services, the inclusion of contribution from SimCorp Italiana and then also the result of our cost goals.On Slide 14, we had illustrated what Klaus also talked about, the impact of foreign currency and the foreign exchange and M&A impact. And if you look at the revenue growth, you can see how we get from the reported 23% to 28.8% in local currency and then to the 18% in organic growth.And doing the same for the EBIT margin, we reported 26%. We have headwind of FX of 1 percentage point and thereby, you can say, in local currency, the EBIT margin was 27%. And then we have the positive impact from SimCorp Italiana. So if you -- you can say, adjust for that, the organic underlying EBIT margin in Q1 was 24.4%. Going to the next slide, Slide 15. We show here the order intake where the order intake was EUR 4.1 million last year, that same period last year where we have the inclusion of the contract won in France and then also additional license sales in both Dimension and Coric. When we do the order intake, we have not included SimCorp Italiana. So this is only showing SimCorp Dimension and SimCorp Coric. So you can say, this is the organic underlying order intake.Then finally, our client-driven development, what we call CDD, that accounted for EUR 1.6 billion of the Q1 '18 order intake compared to a smaller amount last year of 0.2% -- EUR 0.2 million, sorry.Looking then at the order book. If we compare towards end of last year, we do have the impact from conditions being met for revenue regulation of the 2 significant contracts I mentioned before. So that, of course, have an impact on the order book, and that's the reason why the order book, at the end of this quarter, is lower than when we started the year. But that was, as I said before, as expected. If we compare the order book to Q1 2017, we actually have an increase of $5 (sic) [ $5.1 ] million.Going to the next slide, Slide 17. Here, we do have some more details on the different revenue lines, and we have shown it both in reported and in local currency growth numbers. And if we take new licenses -- sorry, if we take licenses together, we do have an increase of more than 100%. And if we look at it from an organically point of view, it's 66%.[ Total ] -- looking at software updates and support. We do have a growth of 10% in local currency. And if we look at Professional Services, we have had an organic growth of around 12% or 11.6%, just to be precise. So still a double-digit organic growth within Professional Services.Next slide is Slide 18, where we have the different cost elements. And if we take it all, we grew our -- the cost increase by 5.7%. And adjusting for M&A and FX, the organic underlying growth was 3.7%, which was primarily due to annual salary increase of around 3% and then an increased activity that's also leading to some additional employees. But again, a much lower growth in costs than in revenue. Cost of sales is the line growing most and that is primarily due to our Professional Services group because when you do grow your Professional Services, your cost of sales will also be growing.If we look at administrative costs, we did actually manage to decrease administrative costs and actually also even more when you exclude the impact from SimCorp Italiana.On Slide 19, we are showing the different cash flow elements. And the key highlight here is that our free cash flow is slightly higher than the year before and that is primarily due to lower CapEx.Finally, our outlook, which is on Page 21. As we have stated throughout this presentation, the Q1 was as expected for us. And therefore, we also maintain our expectations for the full year which is still at revenue growth between 10% and 15% in local currency, of which around 3% of is related to the acquisition of SimCorp Italiana, and an EBIT margin based also on local currencies of between 24.5% and 27.5%.Looking into the exchange rate, and the ones we have used in our guideline is the one prevailing at April 30, 2018, we have still the same expectations as we have when we did our annual report. So we expect negative impact from currency fluctuations of revenue growth of around 3 percentage points and around 0.5 percentage point on EBIT margin.This actually concludes the financial presentation. So the last slide, before we go to the Q&A is Slide 22 where we would like to invite you all to our Capital Markets Day, which will take place in London on September 20 where we, of course, would like as many as you are able to participate. So a little marketing gimmick here for the Capital Markets Day in London. And now I will hand over for questions.
[Operator Instructions] Our first question comes from Claus Almer with Nordea.
A few questions from my side. First of all, this is Standard Platform. How important would that be for your order intake this year? That will be the first question.
So the Standard Platform is a supporting factor in our orders because we think that helps us with both small and large customers as we are able to be more predictable, we are able to be at a lower cost. The combination of the global delivery that we built out of Poland, combined with the Standard Platform is going to make the implementation projects simpler and smarter. So I don't know how important it is going to be. I think that's going to be some customers, that would be harder to get without it and some, that would be even impossible at least METROPOLE. This year, Novo, last year, a big part of that decision criteria was this implementation methodology.
Okay. So Klaus, you are not going to -- it will be helpful if you could say we should expect a handful or 1 or 10? How great a demand do you see for this simpler implementation process solution?
I don't think I can answer the question that way. I think that this is becoming -- this tell versus ask is becoming more prerequisite than to get the order. It's becoming more table stake. So it's not like this is going to get us 10 deals more than -- in the old days, in some sense, deals we would have had in the old days without this, we wouldn't have today without this. So the world is moving just with this. The world is moving with cloud. The world is moving on where things become a prerequisite for you to keep staying in the market, and this is one of them.
And if Novo is like this...
We build it into all what we're doing today. So it's hard to imagine that it is not an element of a new deal today in [indiscernible]
Okay. Then a question regarding the cost base. Going forward in the coming quarters, I guess, the salary increase the employees will get once a year, is -- happened in the latter part of Q1? Or how should we think about cost base in Q2?
The way we are doing our salary increases that -- or salary adjustment, that is taking effect from 1st of January. So you can say -- and that was also the case last year. So we're comparing, in that way, apples-with-apples plus in -- on average, 3%.
Okay. So Q2 should be the same...
And the level -- in relation to your question regarding what's the timing of the salary increase, that take place from 1st of January.
Okay. And then just a final question regarding the cash flow that's happening, a lot of things, in the P&L in this quarter, but still EBIT is up by 150% or something like that. Still, the cash flow from operations is down year-over-year. So how much is underlying performance and how much is more accounting effects, first of all, to separate those things?
We are thinking.
Yes. But when we do new deals, then you will not -- we have this and that's also why we have the contract assets in our balance sheet. So for instance, if we make -- service here a new deal, then you know that we will not yet -- the subscription upfront, we will then get it over the 7-year period. So you will say -- you will have the impact from the contract assets, which is also shown in our cash flow statement. So you have a line saying changes in contract assets. So I would probably -- the best way will be to guide you to the cash flow statement where you are not all things have the line changes in contract assets.
Sure. That, I understand. But in -- yes, well -- yes and no. But in Q1, you didn't have 7 new contracts. So I'm just trying to figure out, this extra profitability from the P&L, what allows that is Professional Service and maintenance fees and then obviously, the backlog. When should we see this converting to cash flow?
Yes. But you did have the deal we want from an order book perspective in Q4 2017 and you then have this revenue in Q1 2018. There, you will not see the cash in Q1 2018 because that will be taken over a period of time. So that's where -- you have the difference between revenue recognition and then the cash flow impact. And then we also have something in Coric in that area [indiscernible]
I fully understand. It was just more trying to figure out the cash flow profile in the coming quarters. Will you have a catch-up on -- compared to your conversion rate, so to speak? Or how would this play out throughout this year?
No, I don't think you will have catch up there.
Our next question comes from Gautam Pillai with Goldman Sachs.
A couple, if I may. Firstly, Klaus, can you give a flavor on the pipeline for the remainder of the year? It would be great if you can comment on the maturity of the pipe compared to last year and also, the pipe coverage you see. Secondly, I had a question on the add-on license revenues. We have seen a step change in the add-on license growth in the last 3 quarters. Can you comment on what is happening here? Are you seeing some tailwinds from regulatory changes like MiFID? Or is it also driven by sort of front office replacements in Europe or in the U.S.? And lastly, can you give some color on the U.S. pipeline? Are you satisfied with the progress you have made here? Or do you anticipate any further investments to gain more traction?
Okay. So maybe the 2 pipeline questions in 1, so the [ matured ] -- so the pipeline overall, if I add up the number of deals, the volume of the deals and so on, it's as -- the answer has -- of course, will be the same as it's always as -- it's as good as they've ever been or better. So that's kind of what it is. It's still slow. You see us having done one ILF deal so far that we've announced, and that's not much in some senses. There's some slowness in actually concluding these deals, but the pipeline remains very strong. There's -- in the pipeline, there are deals that are very mature. There are deals that are not as mature. There are large deals. There are smaller deals. So it's the usual mix we look at. So there's no difference in there. The U.S. pipeline is quite strong as well. It constitutes a, at least from the new license part, a significant part of our pipeline given that this is where growth in new customers are coming from. So it's healthy and good. And I just wish that more of it would convert faster is kind of what my response would be. The decision process is that customers are still slow. It's board decisions. It's -- there's just a lot of moving parts to get something across the line. So that's what it is on the pipeline. On add-on licenses, you're right. We've seen a step-up in the last few quarters on this one. And as you notice, this is customers expanding the use of SimCorp Dimension into new areas. So we've seen a number of customers that has expected the front office use quite significantly. We've seen a couple go from front office to back office. And then there's also been a couple of deals like the cash front deal where it is outsourced and wants a new technology platform to grow and address the market with. So that's where they're expanding the use and have [ added up ] SimCorp Dimension to be more in line with kind of that opportunity. So that's where it's coming from. And I would say that if I look at this pipeline for add-on licenses for the rest of the year, it also looks quite healthy. There is -- our perception is there's quite a few of the existing SimCorp Dimension customers that are wanting to do more, whether -- this notion of the one platform for a complex world or one system for a complex world is resonating. So there are customers out there that want to put more on that one platform because they see the synergies they get from it.
And just so [indiscernible]
Okay. Can I just a few things to that one, to the -- just on license sales. I think it's also interesting and you can see that in the statement note that we do like to see also in our mature markets that we have good traction in additional licenses. And I think that's actually quite good to see. And we do also see that what we are feeling is something that we have developed over the last couple of years, which is also very positive. So what we put to the market, we also are able to sell to existing customers.
One quick follow-up on that, on these front office kind of deals you just mentioned with existing customers. Are these competitive replacements? Or are these like legacy kind of systems that you are kind of replacing?
That's a mix. Compared -- that's [indiscernible] what you define as legacy and competitive in some senses. But if you look at front office, we continue to replace people like Charles River, BlackRock, [indiscernible] and bunch of older systems, including some that people have developed on their own. The back office expansions we've done has been replacements of all systems like [ Porsche ] and so on. So that's -- so depending on how you term it then but mostly, I would say, on the back office, it's replacement of legacy. On the front office, it's more competitive. That's how I would think about it.
[Operator Instructions] We have a follow-up question from Claus Almer with Nordea.
Yes, I just have one more question regarding a consolidation in the industry. We have seen several deals being announced, a lot of rumors going around. Klaus, how do you see SimCorp's role in these trends?
So you might remember a long time ago, when I joined SimCorp, one of the things that I said then that I'll continue to say today is that the software world consists of 2 types of software companies, there's growth companies and then there's consolidated companies. The growth company is where we belong. These are companies that invest heavily in R&D and continue to see strong growth in their products and in kind of their -- in how they spread across their customers. If I compare us to other areas like the ERP business and so on, then you find companies like Microsoft and then Salesforce and then SAP that has this notion of they're investing quite heavily in R&D and they're growing mostly organic. That's kind of -- that's one type of company. The other type of company is other companies that for some reason stopped growing and still has the cost base as if they were a growth company. And those companies tend to get acquired by somebody who rolls them up or a private equity or something else like this. And eventually -- just the latest example of this, of companies that have shown 2%, 3% growth a year to low 20s in margin, which is not the right metric. I think that a few weeks back, I saw a presentation by one of the big consulting companies. And I think they had an interesting metric they looked at that kind of describes this in one metric basically. They said, if you take the compound annual growth rate over the last 2 years and then you add to that the EBIT, EBITDA margin. If you get to 40%, you're best-in-class. But that means that either you have low growth and high margin prepare to have neither. Somebody will acquire and then figure out how to get the high margin to get to that 40%. So that's the mix. Sad to say, we have 38.5%, so we're a little bit below and we need to fix that.
Then the obvious question, Klaus, how will you fix that? Is it growth on your margin or both?
Both, yes.
But that is -- yes, a good answer [indiscernible]
If you look at the statement we've given throughout the 6 years I've been here, the statement has been we will do top stated growth at expanding margins. So the answer is yes.
I know. But there's also another possible outcome that SimCorp will be acquired by someone, maybe a stronger person in the U.S. or who wants to move into a U.S. base. So obviously, that can be a different strategy to do this. In the past, the message from SimCorp has been that you are not supporting a -- the, say, takeover scenario. If not, the buyer will add something that SimCorp cannot do by themselves. Is that also how you see it or...
I -- so given that we're a public company, we have sale every day. That's kind of how it is. Do we want to get acquired? No. That's not -- we have no intention of getting acquired by anybody. But that doesn't mean we can't get acquired by somebody. It's all -- that's up to our investors. That's not something where I can have an opinion on this. That's an investor opinion that -- whether they want to sell the shares at a given price or not. But as such, I mean, my interest is to drive a company like SimCorp that we've done successfully so far, and that is even with that metric I just shared, very close to best-in-class.
The next question comes from Niels Leth with Carnegie.
A question on your add-on license sales, which has moved up quite significantly in the past few quarters. Could you talk about the historical level of that add-on license sales and to what extent the ratio has moved up in the past few quarters and if this is sustainable?
Not -- so I don't know how to answer that one. So right now, I think you are referring back to a ratio we had 10 years ago, which was kind of the -- made the installed base compared to add-on licenses and so on. We've not -- that's not a ratio that we've kind of driven into for a long time. And our ambition on selling to existing customers is that it should grow every year. Over the last few years, it's grown every year as we have sold more to existing customers every year. The last 3 quarters, we've sold more to existing customers than we have in the past, so we've seen stronger growth in that. But that also kind of goes back to the way we develop. One of the things we focus very hard on is that we sell more of what we recently developed. So what we're seeing is that if I look at what came out of development in the last 24 months, then what we sell off kind of that innovation, if you will, has increased significantly year over year over year. So we keep kind of coming out of development with more interesting stuff that we get sold in the short term. So that's one of the drivers for this. Would you want to add something, Michael?
Yes, maybe just a little [indiscernible] there's, of course, also something else here. So also, with the 2 acquisitions we have made, Coric and SimCorp Italiana, they have, you can say, a more frequent renew process. And thereby, you can say you get this at this. I know that they are not as big as Dimension, but you get this ALF renewal effect from those 2 acquisitions. And going forward with our new model, when the license expires, then you will see the same impact most likely on Dimension. But that is just longer duration of these contracts than we have for Coric and SimCorp Italiana.
But could you talk about this -- what appears to be a deliberate push by SimCorp to focus more on these add-on licenses? So I mean, what are we actually doing to push sales of your new innovative solutions? Have you allocated more sales rep? Are you allocating more of your selling resources to selling these solutions compared so meeting new customers or what are you actually doing here?
I think it goes all the way through the value flow. It starts out with us kind of being very deliberate about what we develop. So we've moved to a regime where we are very deliberate about only developing things we can sell multiple times and also in the shorter term. So that's why you see kind of that ratio of the innovations done in the 24 months getting released and getting pushed in there, just there. And then we've also probably structured our account management teams in a different way than we have in the past. We've also been a little smarter in segmenting which customers are more likely to buy than we did in the past. So those are some of the things that are there at least for the SimCorp Dimension sales.
And there are no further questions at this time. I'd like to turn the conference back to Klaus Holse for any additional or closing remarks.
Thank you very much. There are also no questions coming in over the web. So I guess, it is a Friday afternoon, at least in Copenhagen, and a Friday morning in New York where I know some of you are. And I would just say a big thank you for taking the time to dial into this conference. We've had some very relevant questions. We will get back to you on the road over the next few weeks and then hopefully see you there, and then we'll see you back in this conference call in Q2. Thanks for dialing in and have a great weekend.
And that does conclude today's conference. We thank you for your participation.