“We believe that, given our business model and strong fundamentals, there is a possibility to get our margins back up to 40% plus in the long term, but this will depend on our ability to accelerate growth momentum.”

In context

“Joo Mi Kim (CFO): Yes, it's a great question. With the new executive team in place, we've had some in-depth discussions with the CRO, CMO as well as CPO and other executives to determine the right priorities to focus on and how we can maximize our ROI. For 2022, we have multiple levers we are working on. A key priority is attracting and retaining great talent, which includes our quota carrying sales reps. If you look at our sales and marketing headcount, in 2021, we ended the year slightly over 300, which is single-digit growth over the prior year. We think there is definitely room to increase our sales force, which should help increase our bookings growth, since 60% of our revenue comes from the direct sales force versus 40% from the channel. This hasn't changed. In terms of the magnitude, we are planning to increase investments to the extent possible. We've even increased our recruiting team to ensure that we're taking advantage of the opportunity out there. Given the inflationary pressures many companies are facing, we are fortunate to have a robust business model that allows flexibility to increase spending at this time to not only gain market share but to scale the team and business to target a higher longer-term margin. We believe that, given our business model and strong fundamentals, there is a possibility to get our margins back up to 40% plus in the long term, but this will depend on our ability to accelerate growth momentum.”