Q3 2019 Earnings Call
Good afternoon, and welcome to the Love Me in third quarter 2018 Financial earnings Conference call. Today's conference is being recorded.
I would like to turn the conference over to Mr. Rob Bradley Vice President of Investor Relations. Please go ahead Sir.
Thank you and welcome to our third quarter 2019 earnings Conference call today, I'm joined by our President and CEO Bill Wagner.
Our Chief Financial Officer at Heritage.
During today's call, we will discuss our business outlook and make other forward looking statements.
These statements are made as of today are based on our current projections estimates.
Forecasts and expectations.
Actual events or results could differ due to a number of risks and uncertainties, including those mentioned in our most recent filings with the FCC.
Nobody does not undertake update any forward looking statements.
We will begin to these called comments by beloved followed by the question answer session.
Before we begin it is important to note that we will use non-GAAP financial measures because we believe that they're more representative.
We truly measure the business.
non-GAAP financial measures exclude the impact of acquired deferred revenue fair value adjustment stock based compensation expense.
Acquisition and litigation related costs.
Amortization of acquired intangible assets and restructuring charges.
All metrics on the Colby non-GAAP .
Otherwise specified.
Numbers are reconciled in the tables attached to a press release.
With that.
All over to our CEO Bill Wagner Phil.
Thanks, Rob.
Good afternoon, and thank you for joining us today as we shared lobbying for third quarter results.
I'm pleased to report that we delivered strong financial results in Q3 with revenue adjusted EBITDA and earnings per share all exceeding the high end of all guidance.
Third quarter revenue growth accelerated to $317.2 million up 2.5% year over year.
Adjusted EBITDA was $109.3 million were 34.5% of revenue.
We delivered earnings per share of $1.39 cents.
$70 million, a free cash flow.
As noted in February we believe lobbying is positioned to become either finding leader in threed much larger faster growing adjacent markets.
Specifically.
If I communication and collaboration.
As a service digital engagement markets.
At that time, we outlined in investment play better capture those opportunities leveraging early success, we were seeing in those markets.
At a high level. These incremental investments were designed to bring additional momentum and scale to our growth products.
And improve the competitive position of our core meeting products.
We're seeing encouraging progress on both fronts.
And today I'd like to provide an in depth update all these efforts.
We think are critical to our long term strategy.
I'll start with a deeper look at our largest growth products Jive and last past ensure data points that we provided better sense of the success, we're seeing with these products.
I'll then provide some color on our recent changes to our go to meeting product.
Pretty excited about.
Our ucas products, namely Jive go to connect products.
I had another great quarter in Q3 with revenue growth of 37% year over year.
New would add on sales growing 60% year over year.
It puts us in perspective, and the year before we acquired the company Jive with an 80 million dollar business so about 20%.
Less than two years later, we expect the drive business to surpass 140 million in revenue.
Over 500000 users on our platform.
Well jives have users in 87 countries. The commercial success of this business has been coming almost exclusively from selling two companies face in the Americas.
In Q3, we took steps to bring our full go to UGC suite to new audiences across the globe.
Including bringing or Ucas, often go to connect.
Well as our new rooms solution go to room to companies in key European markets.
Among them for three of the biggest markets, including the UK, Germany and Ireland.
Well, we've made the regulatory infrastructure and channel investments needed to best serve this largely untapped customer base.
Each of these markets has long been a strong market for London in general and for meeting specifically.
Exactly where it comes online leading market share.
Oh, the number one number two position in all three of these countries.
Making each natural market for expanding the value we can bring to customers.
That competitive advantage quickly turned into early deals in Q3 at the first go to connect the all in Europe came from a go to meeting customer that was looking to move its telephone system from an on premise solution to a cloud provider.
Another existing customer combined go to meeting with our conferencing solution, while deploying our new go to room offerings to more than 80 conference rooms.
It's early but the response from our European customers and channel partners has been very positive.
We're now gearing up to wants to go to connect and go to room in Australia later this quarter.
This international expansion, although you cast sweet along with the launch of go to room earlier in the year all made possible by these investments outlined in February .
We're very pleased with the performance of this business.
Turning to the second largest growth business last past be made strategic investments late in Q2 to accelerate our push into a broader identity opportunity.
Investments that helped fuel strong performance in Q3, all positioning us well for Q4 and beyond.
In Q3 last that's all year over year revenue growth of more than 60%.
And like are you cast growth products, it's doing this at scale.
With nearly 20 million registered users and now ranking as one of the most downloaded chrome extensions of all time last past will approach $85 million in revenue. This year and has emerged as a clear category leader.
I can take a few companies in the cyber security market with a more attractive combination of scale and growth rate.
Yeah, we believe just starting to scratch the surface if its potential at a much broader cloud that'd be market.
Announced in late Q2.
And they generally available in early Q3.
The new last past identity suite ships last past from the point solution into the school business line that covers a range of access management use cases.
As we noted on our Q2 call in July .
The news, we create upselling and cross sell opportunities with existing customers.
And also opens the door for conversations with a new crop prospects underserved by today is complex and top heavy identity landscape.
One such example came at a financial services company that was looking to replace an on premise password manager with a cloud based solution.
Multiple employees involved in the decision for personal users of last past, which helped open the door.
Once the conversation started.
Prospect became the number just last passive active directory Federation multifactor authentication and superior policy control.
While the original RFP was only for a password manager the ability to get both parents were Baltic multifactor authentication to a common vendor proved a winning combination putting last path ahead of the competition and resulting in a purchase our full identity solution.
It's still early on the identity front, but the initial success of the new last past week and the growing adoption of last passed by both business and consumer users is bolstering our already optimistic outlook for our fastest growing product line.
So in general we are pleased with the returns we're seeing from our investments in our growth products products like Jive and last past, our cheating real scale growing faster than we expected to continue to demonstrate strong unit economics, despite the increased levels of spending.
Overall dive last pass and our other growth products collectively now account for 26% of total company revenue.
Up from 24% last quarter and 19% in 2018.
And as these products gain increasing scale. It will continue to lift the overall growth rate public company.
The other primary investment area in 2019 was focused on increasing the competitiveness of our core meeting business, especially go to meeting.
Although it's taking longer than we expected to see improvements in the trajectory of this business.
Meaningful progress and strengthening the competitiveness and market position of go to meeting.
Progress, we believe will pay off in future quarters.
You are especially excited about recent changes we've made to the product.
The highly competitive pricing be introduced.
Well, we'll take some time for us to pull yourself the impact of these changes on the business. We believe they will increase our ability to win new customers and improve customer retention.
In September we introduced the all new go to me it completely redesigned meeting experience.
Good thing customers began being onboarded throughout the month in October 1st.
New go to meeting became generally available to all new and existing customers.
Featuring an elegant video first meeting experience.
New go to meeting with design from the ground up to address the needs of the modern workforce.
Incorporating input from more than 10000 users we brought together the web desktop mobile and room experience, making for seamless inconsistent collaboration for today's flexible and mobile workers.
He completely overhauled the voice and audio capabilities, bringing crystal clear and reliable audio that we believe is beyond anything on the market today.
And we pulled forward, our AI transcription capabilities, making meeting smarter and dramatically reducing the work required to share insights and outcomes.
He received very positive initial feedback from customers prospects and industry analysts.
New launch also Mark the introduction of new pricing for go to meeting.
While there will likely be a trade off of lower average order size. We believe this makes good of meeting far more competitive when going after new business and puts us in a better position to retain clients.
Of course, the more customers, we wyndham attained in the meeting side the more opportunities to cross sell you Cafs and room solutions, making these customers potentially more valuable overtime.
That said just launch both the product and the new pricing. So while we are confident you know position, we're going to be cautious in our outlook until we gather more data.
In summary, our growth products like Jive and last past are gaining stature growing faster than expected and demonstrating strong unit economics at scale.
We believe these businesses are incredibly valuable and are benefiting from the increased levels of investment we committed in 2019.
Meanwhile, we continue to work hard to improve the growth in other parts of my business, most notably go to meeting.
Very excited about the new product and user experience that recently went GA.
As well as the pricing, we just rolled out and we'll monitor be impacted these changes closely as we progress through Q4.
We also use these and other inputs to step back and evaluate our overall investment strategy as we exit the year.
As we finalize our plans for next year, we'll continue to review the return of these investments and we'll evaluate the best ways to realize the full value of our business as we head into 2020 .
I'll now turn the call over to add to provide details on our financial results and outlook.
Before I do I also wanted to call out another announcement, we made this afternoon.
After adjusting career, which he played a critical role in some great. Chuck success stories, Ed Herdiech has announced his intention to retire in 2020 .
Executive search for a new CFO is underway and Ed will remain the flooding in helping both the search and driving our financial operations as CFO through the eventual transition in 2020 .
I want to publicly tank and acknowledge and for all these accomplishments at lucky in throughout his career. He has been a great partner colleague friend and mentor to me and so many others.
With that I'll turn things over.
Ed.
Thanks, Bill I appreciate the kind words and before I jump to the financials I'd just like to say that it's been a real pleasure.
Had the privilege of working with great companies and great people over the course in my career.
I can confidently say logged me and with the place. It gave me the opportunity to do my best work and arguably build the best finance team and Seth.
I'm, taking the company public in 2009 to becoming CFO and 2015 to executing the transformative merger with Citrix is go to division in 2016.
The defining moments in my career happened here with this team.
And it's this success and this team that gives me the confidence to kick my next big step retiring.
While ensuring that the legacy rebuilt isn't the best of hands I look forward to working with the team to select or next CFO and helping to ensure a smooth transition.
Turning to the financials I want to remind everyone that I'll report our results on a non-GAAP basis, unless otherwise specified.
As always a reconciliation of our non-GAAP to GAAP results can be found in our press release and on our Investor Relations website.
Q3 results came in above guidance and highlights include.
Revenue of $317.2 million, which was up 25% year over year and was $1.2 million above the high end of our guidance.
Adjusted EBITDA of $109.3 million or 34% to 5% of revenue and was $300000 above the high end of our guidance.
Earnings per share of one dollar and 39 cents, which is two cents above the high end up forgotten and additionally, free cash flow with $70 million or 22% of revenue and deferred revenue ended the quarter at $393 million, which represents 5% year over year growth.
Our unified communications and collaboration or you see fee revenue was $172 million, which is down 2% year over year consistent with last quarter.
Within UGC Jive continues to perform very well and exceeded our expectations as revenue grew 37% year over year to $37 million.
We continue to see strong market adoption of our you Cafs, we that brings together the best of voice video and collaboration.
Our core meeting business performed below our expectations in Q3. However, we're optimistic about the recent release of the new go to meeting, that's where the pricing changes that together make it more competitive than ever before.
Our identity and access management business or I am.
Continued to perform well in the third quarter and we saw growth accelerate from Q2 revenue in the quarter was $103 million and it was up 14% year over year, driven primarily by last path, which grew 64% year over year to $22 million.
We're encouraged as we see early signs of market Receptiveness of our new lastpass identity bundle that include single sign on and our next generation multi factor authentication capabilities.
Our customer engagement and support business or C. S generated $43 million of revenue and was down 3% year over year compared to being down 4% year over year. In Q2, we continue to invest in both Threesixty I actually see strong customer adoption of artificial intelligence based digital engagement solutions.
In total our growth products continued to perform very well, particularly jive and last past overall in the third quarter. They grew 34% year over year and accounted for 26% of total company revenue, which was up from 24% in Q2.
With regard to renewal rates for the third quarter or total company gross renewal rate across all products on an annualized dollar basis was approximately 80%.
Insistently last quarter.
Next I'd like to review, our Q3 expenses.
In the quarter gross margins were 81.4%, which were inline with our expectations.
Sales and marketing expenses were $106 million or 33% of revenue. This represents a $9 million decreased in the prior quarter associated with seasonality as we reduced our marketing spend in the summer months.
Research and development expenses for $33 million or 10% of revenue, which is one percentage point lower than last quarter.
<unk> expenses were $26 million or 8% of revenue, which is consistent with the prior quarter.
Finally in Q3, we returned $61 million for stockholders through a combination of buybacks and dividends, we repurchased 628000 shares overstock for $45 million and paid $16 billion in common stock dividends.
In the fourth quarter will pay a 32 and a half cent per share dividend on Friday November 29, 2019 to stockholders of record as of Wednesday November 13th 2019.
With that I'll now provide our outlook for the fourth quarter and our full year 2019.
For the fourth quarter, we expect revenue to be in the range of $319 million to $321 million, representing 3% year over year growth up from 2.5% year over year growth in Q3.
We're currently targeting adjusted EBITDA to be in the range of $110 million to $111 billion and adjusted EBITDA margin of approximately 34.5% of revenue.
Net income per share is expected to be in the range of $1.39 cents to $1.41 cents.
And our GAAP net income per share is expected to be in the range of 15 cents to 17 cents.
Net income assumes an effective tax rate of approximately 25% and GAAP net income assumes a tax provision of approximately $3 million.
Both net income per share and GAAP net income per share are based on 49 million fully diluted weighted average shares outstanding.
For the full year, we expect revenue to be in the range of $1.258 billion to $1.260 billion.
Revised revenue guidance reflects approximately $3 million.
Thanks headwinds versus our prior guidance.
We expect full year adjusted EBITDA to be in the range of $412 million to $413 million with full year adjusted EBITDA margins to be approximately 33% of revenue.
Our net income per diluted share is expected to be in the range of $5.12 a $5.14.
GAAP net loss per share is expected to be in the range of six cents or four cents.
Net income assumes an effective tax rate of 25%.
GAAP net loss assumes a tax provision of approximately $4 million.
Net income per share is based on 50 million fully diluted weighted average shares outstanding.
GAAP net loss per share is based on 49.6 million weighted average shares outstanding.
Finally.
We expect Q4 free cash flow to be approximately $85 million and full year free cash flow to be approximately $330 million.
This updated free cash flow outlook takes into consideration of softer sales forecast, primarily attributable to our meeting business, a change and product mix and a slight reduction and forecasted net working capital.
In closing I want to reiterate that we're very encouraged by the performance of our growth products and believe that we're building valuable franchises. We have also believed that we've made significant improvement that I'm eating business, which we believe will positively impact future results.
That concludes my remark now I'll turn the call back to the operator to take your questions.
Thank you if he would like to ask a question, placing know by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment.
Once again any star one he would like ask a question and we'll take our first question today from Alex Kurtz with Keybanc capital markets. Please go ahead Sir.
[laughter].
How do you think that it's going to play out comparatively in the market and how that.
Could have some initial impact on your fiscal 20 outlook. If you want to provide any kind of a framework on that I think that would be very helpful to us to investors.
Oh sure there was a little bit it'll probably be audio Alex so PV. So kind, there's just so I'll restate. The question because we didn't hear that first half of it.
Yeah, sorry can you hear me now.
Lot of Claire.
Okay. So.
Just on the price changes that you made to the go to platform and what this might mean for fiscal 20 odd meeting growth.
Yeah, I mean, the a were not right right now we're not going to provide an update on the outlook for 2020, Oh, we remain very focused on achieving our goal 5% for next year to achieve that we need to see continued strong performance in Jive and last past as well as improvement in the core.
Our go to meeting business, we didn't just launched a significant products.
Changes and price initiatives and those have only been in a market for a few weeks. So we need to fully evaluate their performance before we update on the outlook.
Thank you.
<unk>.
[noise] hand, our next question today comes from Sterling Auty with JP Morgan. Please go ahead.
Yeah. Thanks, guys.
So the comments you made about evaluating the investments I know, that's a tough topic and you know maybe not a lot you can say, but I know its threatened center out investors' minds. Yeah. There was the deal reporter you know report talking about maybe you are having talks of looking to sell leap parts of the company you know how does that fit in.
In terms that strategy.
Yeah. Thanks, Sterling you know, obviously I can't comment on speculation we do believe we are undervalued, but we're not going to comment on hypotheticals, where we're really focused on building. These great businesses and the investments we've laid out this year I think we're pretty pleased with the results and.
That's our primary focus as we work through the second half of the year and then we'll evaluate the return on those investments.
Sure we head into 2020.
Alright fair enough and then just one follow up question on laptops. Yeah. You quickly brought some markets under the advanced features to make it more of a full blown single sign on where do you think it ranks in terms of the feature functionality relative to what you believe it needs to be true successful in the long term.
Yeah, we're really pleased with the results of the initial results of that product and we did bring it to market pretty quickly and remember these the purpose of that product as we think theres a large unaddressed market in the identity as a service space you know, there's a lot of enterprise solutions a lot of companies going after those large.
Companies last passes there really lightweight way in the identity sleep kinda continues to be a lightweight way to address the identity issues of that that big middle market that we think is is really creating that solution. So far initial results have been very positive, but it's early we've only been selling it for a quarter.
Great. Thank you.
Your next question comes from Craig Moscowitz with Miss who loves. Please go ahead.
Hi, This is a member of onto a great sense take my cool. So are you initially guided for your gross proceeds 25% of revenues execute goal. Obviously you are the Ah that so I I was wondering if you could give an update on how you're thinking about the contribution of fuel you Cook assets are in terms of plenty.
Yeah again, I think right now we're focused on Q4 this year and we're not going to get into 2020. Obviously, we're pleased with the Overperformance are those growth assets. We've made a lot of investments behind them those investments are doing well and paying off and but it won't be evaluate as we exit the year.
Okay and <unk>.
Let us go what would the collaboration renewal rates this quota excluding jive.
Quoting Jive the renewal rates were about 82%.
Okay. Thanks very much.
Your next question comes from Willpower with Baird. Please go ahead.
Yeah.
Great. Thank you I guess just a.
A couple of questions first just coming back to of course at I guess, just congratulations and good luck in and retirement or baseball helpless several years.
So I want all three first question.
Yes, Yeah first question just coming back to usually see segment.
Obviously, great to see the Jive Roe.
She noted the you know the core.
Meetings business collaboration does this could face to face challenges one of the could just update us just.
Yeah, what you're seeing competitively is that much of the same any color you know on churn rates I guess, you kind of just a just a dress. So it sounds like maybe it's maybe all the growth side of the churn side just.
Kind of what you're seeing competitively and what gets that talk around something out new product is going to the key piece.
Sure well I'm so during the quarter, we reduced our marketing spend look at more than we originally planned because we thought it made sense to align that spend with the launch of the new product and the pricing changes. So we kind of reallocated some of those dollars. Other products. That's contributed to a decrease in some lead flow and some softness primarily in.
In the new an add on business.
We now we have to new product and pricing in the field. These ramps marketing spend back up and and we're seeing early positive signs.
Although it's only the first few weeks so we're going to monitor that closely as we proceed and you know that also coincided with the pricing and you know, we believe really that the lowering the price and and introducing the packaging will really help on the new customer side and also see improved renewal rates.
Our research suggests that we while we may lose average order size, it's gonna be offset by volume if new customers add on sales data renewals and the early signs are pretty positive, but again, we're gonna be cautious because it's only a few weeks in and and we'll see how we do through the rest of quarter.
Okay, and then I guess, if I could just squeeze one more and just coming back to the last past, obviously strong growth there too I think you mentioned 20 million registered users could you give an update on <unk>.
I'd paid users and I guess I'm just curious if you look at that 60% plus growth there.
Can you break that down between what you're seeing a consumer side versus kind of the business and enterprise Bush.
We did not we did not disclose any data on a number of paid for us free users. So that's all included in that 20 million number I'm. The majority of our revenue comes from enterprise customers larger customers Midmarket customers generally sold through our direct sales force.
So much more as more than two thirds of that revenue comes from that customer base.
Okay. Thank you.
And our next question comes from Rich Valera with Needham and company. Please go ahead.
Thank you when you provided your kind of multiyear plan around the strategic investment you Doug given some cash flow figures for next year out of that was slightly down from the one this year about 15 million down given that the lower baseline. This year is there anything you'd be willing to say about expire.
Good cash flow next year at this point.
Yeah.
Hey, This is Ed. So you know kind of following up on Bill's comments about yeah, we've been talking for a while that we need to kind of reevaluate investment levels and so forth as we've got work through the end of the year as part of our planning. So at this point you know we are we're not repositioned talked about 2020.
Fair enough and I know, there's a lot in play and then they go to meeting I'm sure franchise as we as we go into fourth quarter, but I think you'd be hoping can maybe get collapse back to growth were flat and the fourth quarter.
Are we do we still have that target on the table. There were just going to kind of wait and see it just kind of wonder what's baked into your fourth quarter revenue guide in terms of the you'd see see business if you see business.
Yeah, I I think we're really focused on you know watching to the Q4 are watching how those results.
Play out and how the new product launch a plays out in pricing you know again I think early results have been positive, but we're going to be pretty cautious in our outlook.
As you work through the quarter and and then we'll see how we do.
Okay. Thanks for taking my questions appreciate.
And as a reminder, if he would like that's kind of question. It start one and your telephone keypad well take our next question from Raimo Im sure. Please go ahead.
Hey, this is Mike on for Rhino. Thanks for taking my question I just wanted to I just had a quick question on the rollout across some of the places in Europe by UK, Germany, Ireland for all the go to connect business is there any plans outside of the Australia roll out in Q4 at this point in time in terms of where we're at what market she'll be targeting that.
I mean I do have another one follow up as well.
Yeah, right now, we're not talking about any other markets beyond the ones that we've already disclosed and we haven't users as I said on my comments and actually 87 countries. So we.
When I talk about country Rollouts, we talk about hard areas, where we have infrastructure and sales people on the ground.
Great. Okay. That's helpful. Thanks, and then I'd. So on the renewal rates are at around 80% you guys have been pretty consistent there over the last few quarters. When you talk about but go to meeting product actually having maybe potential for renewal rates coming up slightly with with a new pricing model, but you had put in place.
Where do you see that number maybe potentially getting to do you have any like kind of target numbers that you're looking for there on the more medium to long term.
Yeah, I know I think we're going to be cautious there and just you know watch how it plays out over the next couple of months and and you did that help all the numbers that we look at probably the retention rate is the want it takes a little bit more timing, we can monitor direct purchases and close rates and volume almost on a daily basis.
But retention takes is going to take a little bit more time to play out. So we'll just have to wait and see him right now we're not getting any any you know, we're providing any new goals for four of retention rates.
Fair enough. Thanks, Thanks, guys.
Thanks.
And we'll take a follow up question from Sterling Auty with JP Morgan. Please go ahead.
Yeah, Hi, guys wondering on gross margins, but pricing changes.
Just rolled out how should we speak about the gross margin impact here in the fourth quarter and whether that would be the bottom and maybe you can work harder on that or whether you seem to tell.
[noise]. They certainly this is Ed so yeah gross margins were 81.4% in the quarter. Our you know pretty much what it was last quarter.
As I as I said 90 days ago, we're continuing to forecast you know 82% for the full year.
Yeah the only.
The I'm not concerned about the pricing changes on gross margin you know the only kind of sorts of pressure. We have is just from cost successful kind of the Jive product is bad and that we recognize the hardware cost upfront it exceeds our expectations. It just gives us a little more and more pressure there.
Got it thank you.
Yep.
[noise] [noise] is our next question comes from Brent kind of luck with Mininberg in capital markets. Please go ahead.
[noise].
Right now I'd like your line has been opened.
Hi, guys. Thanks for taking my question you talked about your restructuring plan talked about increasing spend on QVC hiring and I'm just wondering with the progress not immediately your acreage number of that QC. This.
So certifier.
Oh God, yeah, so that's that retiring so.
They are going pretty well where else are just since last quarter about 10% and yeah, we'll still have some hiring to deal with the work in the second half here, but the overall that's good progress.
Okay, and then just one follow up I guess with more competitive pricing strategy. What do you think the outdoor you'll see a response from solar big competitors.
Their price I guess in stock so you won't get price.
I think process is about making sure that we're in a in a really competitive their best competitive position that we've been in a long time and I think pricing was one of the last pieces and once we once we had our new version go to meeting, which we think is the best product in the space. We thought it was the right time to launch our more aggressive.
I think and you don't move that well see where right about where the rest of the market is and yeah, I'm not going to comment on what a competitors will or won't do but right now we feel good about where the pricing is.
Okay, great access.
Thank you.
And it appears there no further questions in the queue at this time Mr. Wagner I'd like to turn things back to you for any closing or additional remarks.
Thank you for your question Tonight.
In closing our growth products like died last to ask are benefiting from an increased level of investment with both growing faster than expected and there are now doing so at real scale.
Meanwhile, investments in our core meeting business have strengthened our competitive position entering Q4.
The introduction of the all new go to meeting along with highly competitive pricing has generated great early feedback from customers prospects and industry watchers.
Before we recognize it will take some time to see the full impact of this progress, but we're excited by the prospects.
As we continue our 2020 planning or have you ever return on these investments and evaluate the best ways to realize the full value of our business as we head into next year.
Until then we thank you for your time. This evening, we look forward to updating your when we report our Q4 results in February .
And this does conclude today's call. Thank you so much for your participation you may now disconnect.
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