Q3 2019 Earnings Call

Speaker today, Jane Penner head of Investor Relations for Pentrust. Thank you. Please go ahead.

Thank you.

Everyone. Good afternoon. Thank you for joining US welcome to Pentrust earnings Conference call for the third quarter 2019.

Joining me today on the Carl on the call our been Silberman, our president and CEO and Todd Morgan filled our Chief Financial Officer.

I will cover the safe Harbor.

The statements that we make today regarding our business performance and operations and guidance for full year 2019, maybe considered forward looking in such statements involve a number of risks and uncertainties that could cause actual results to differ materially.

For more information please refer to the risk factors discussed in our most recent Form 10-Q filed with the FCC and available on the Investor Relations section of our website.

During this call we will present, both GAAP and non-GAAP financial measures a reconciliation of GAAP to non-GAAP measures as included in todays earnings press release and that letter to shareholders, which are distributed and available to the public through our Investor Relations website, located at Investor Dot Pentrust Inc. dotcom.

And now I'll turn the call over to Ben.

Thank you Jim Hi, everyone. Thanks for joining or Q3 earnings call. After the market close today, we released our latest shareholder letter in it you'll find a detailed report in that business, we're going to start with some quick highlights and leave the majority of the time for your questions.

Q3, we saw significant progress as a company revenue grew 47% year over year monthly active users grew 28% to 322 million people and we had our first profitable quarter as a public company on a non-GAAP basis.

So we're seeing a lot of momentum in that progress is the result of a lot of work. The team is doing to enhance the interest experience for printers in for advertisers.

Inside our company, we talk a lot about our mission of bringing everyone. The inspiration to create a licensing laws in the third quarter. We took a lot of important steps in service of this goal.

Help our users we improved the relevance of a recommendations more than doubling to engage with search recommendations for example year over year.

We launched new home peak controls, helping people control what they see in what they don't see on interest this reduced the rates in which people hide pence, they don't like by 25%.

We simplified the design of our App based on pen or feedback and launch dark mode. So people could have a common experience they wind energy use.

And we worked with emotional health experts to launch a collection of while being activities people can do on interest if they're feeling stressed or down.

How businesses grow we're now advertising in nine new markets, including Greece, Poland, Hungary, and Romania in total we now serve Thats in 28 countries up from 19 at the end of Q2.

We continue to diversify advertisers on interest by focusing on new self serve features for small businesses, including 10 Academy of free you learning tool for small businesses, they want to make better ads on interest.

We continue to make interest more shoppable the number of merchant catalogs uploaded its growth 75% quarter over quarter, we launched a new business profile that includes a shopping tab for retailers and we're working with commerce platforms, including shopify to bring merchants and advertisers onto the platform.

The full picture is captured in the shareholders letter at our Investor Relations website that shows that we're making a lot of progress across the company I.

Im excited about the shredded opportunities ahead of us. So thank you again for joining and Thats hard and I will open up for questions.

To ask a question. Please press star one on your telephone keypad. The first question comes from Eric Sheridan of UBI. Yes. Please go ahead. Your line is open.

Thank you so much for taking my question, maybe two if I could add one the on advertiser demand in order to separated between the US that are international there was little bit of color of the shareholder letter, we just want to understand what sort of reception you're seeing as the product evolution on the advertising side I continues to make progress and with especially with.

Hi towards 2020, how conversations with advertisers from large and agency advertisers all without the Smbs sort of continue to evolve that on the international side, what you're seeing in terms of driving more depth of advertisers on the platform to eventually sort of capitalize on the pace of users globally. Thanks, so much.

Yeah. Thanks for the question in terms of feedback for advertisers I'll start with the U.S.

There are three kind of generally positive theme is that we're hearing from advertisers I'm. One comes down to sales impact, we're driving net new customers and new occasions to buy more topline sales.

Second we hear advertisers are especially excited about insights I'm, especially about early intent in finding early signal on some of the coming in market.

And finally, we hear advertisers universally saying that they want to up here on platforms, where the general tone is positive but.

Across the board were also hearing that the increase in a number of buying tools and targeting option, just making it easier to spend.

On the flip side, we see a bunch of opportunities to continue improving our product offering.

One on asset manager, we want to bring in even more advanced features to manage campaigns things like customer reporting and simplified work flows on the measurement side, we want to do more sophisticated mesh remodeling like incrementality testing and on the creative side, we want to make sure. It's easy for brands to bring their creatives onto interest and reduce the amount of bespoke work there.

To do to appear on the platform.

So those are the major themes in the U.S., but you also asked about SMB. This quarter, we increased our SMB offerings. So we added things like quick insights to complement the mobile AD manager that we'd already belt and we're seeing great traction for advertisers.

Internationally as we've talked about in the past we're still in the early innings building out both our go to market strategy and we're also expanding to new markets and so the plan to increase is really a plan to increase our resources that are going into all of those emerging markets.

Your next question comes from Mark Mahaney of RBC. Please go ahead. Your line is open.

Yes, I'll just ask one question just on the U.S. ARPU and I know, it's a bit of an output, but could you talk to the drivers of U.S. ARPU. There was something of a notable deceleration there.

Help us think about what the trajectory of growth for us our proved should be going forwards. Thank you.

Thanks markets Cod speaking.

I think you you pointed out the real issue, which is it's more of an output its mathematics, and so I'll take the question really back to revenue growth.

We posted 47% growth overall in terms of the business, both us and international and 39% growth in the U.S. and Thats driving the ARPU dynamic that you've described.

We saw a fair amount of strengths in three areas from a customer segment perspective, CPG advertisers direct to consumer advertisers in the SMB space the blended referenced a bit earlier.

And so as we think about growth going forward, it's really going to stem, especially in the us around two new products areas that have been we've been focused on now and talked about for some time, but we'll scale going forward.

They will drive advertiser diversification and those two areas are shopping in SMB.

We bended reference some of the product introductions that we've made but it's still very early days around things like.

Stage targeting region targeting dynamic re targeting around our products and product ads that shopping ads and that stuff is table stakes for us to be successful, it's basically the plumbing or the infrastructure, we need to diversify our advertiser base in the U.S. before we scale.

Well, we've had good success in scaling our share of wallet with incumbent advertisers for example, craft had three new deserve brands Jello, Jeff Kauffman Bakers chocolates that have started to.

Advertise with us that has extended our share of wallet with them.

A lot of those basic tools that small and medium businesses need to see results easily onboard and begin scaling or things that we're rolling out now I think that will drive growth going forward because it will increase the relevance of our promoted content on pentrust, which will will make ads.

Content for our users and deliver acceptable returns on an on advertising spend or advertisers and drive more demand.

That's sort of where we are I hope that gets to your question.

Thank you Todd.

Your next question comes from Ross Sandler of Barclays. Please go ahead. Your line is open.

Hey, guys, yes, two questions.

First you mentioned that you're doing the redesign.

Would you, which I think you said in the latter will be neutral.

Due to revenue so I guess as rolling this out what measures are you taking to make sure. The process is smooth and some other companies in the space and had problems with Redesigns just want to here.

Your level of confidence around that and then what will the redesign do in terms of unlocking future revenue opportunities.

I have higher engagement harmonic monetization or both.

And then Todd just going back in the U.S. AD revenue. So you came in above our estimate but it did decelerate from the tougher comp anything that surprised you guys in the quarter and then as you look out next year can you talk about specific reason some headwinds and Tailwinds that you expect to see in 2020 for us AD revenue. Thanks a lot.

Thanks, Ross I'll start with your question about the redesign.

So we spent a lot of time talking to both painters and folks that don't use the platform yet and we collect a lot of the feedback on that pain points and a lot of pain points are addressed in the redesign. So some things that we think are going to be a lot better I'm as we continue to roll it out we simplified the navigation, obviously separately to things like home in search we made the product a lot more vision.

Cool so we've reduced our necessary text. So the focus really is on the content and then we've also kind of cleaned it up so it given the space. So we can roll out more features things like shopping in Modularized a lot of those pieces.

We take the rollout really seriously and so weve rolled it out progressively we've tested each component.

And we look at a basket of metrics, we look at engagement long term retention, we look into revenue impact on because we rolled it out aggressively and continue to do so I feel confident that at the very least it'll be neutral in terms and engagement and it'll certainly gave our product seems more opportunity to build out a lot of the features that we want to in the future.

I think it's like shopping and more interactivity on pens.

And then I think that's the second part of the question on our revenue outlook.

I'll come back to sort of where we are in this quarter and then discuss a little bit about our guidance for the rest of the year.

Number one I would say that the growth rate that we posted from an overall business perspective at 47% was consistent with our expectations and very much in line with the guidance, we gave last quarter and updated again and confirm basically with the guidance we issued in the shareholder letter today.

It's probably worth taking a step back to where we were in the last quarter's call what we talked about the outlook.

If you rewind the clock back to the third quarter of last year that was the highest growth quarter. We had in the last two years at 64% growth year over year and that's just the math.

The product reasons, why that happened, where we were scaling our conversion optimization product in Q3, a trend that continued into Q4 last year and we were scaling our our video awareness product in Q3 again, a trend that continued into Q4 and so when you think about the dynamics that you're referring to in growth for Q3, and our outlook for Q4.

Sure. That's all reflected in the guidance that we gave last quarter and confirmed again today, it's a tough comp based on the success, we had with those products a year ago.

What I'd referenced in my prior answer around the things that we're building so.

To make this product to capitalize on the commercial intent of our users, which aligns advertisers with what users are on Pentrust to do we've got to deliver relevant promoted content and the way we're going to get there is by diversifying our advertiser base. So that we can put the right out in front of the right person at the right time.

The things that we're doing two enabled out right now are a lot of the product initiatives offended reference so our catalog ingestion program and our shopping ads, where we've increased the amount of shop.

Catalogs ingested my 75% quarter over quarter.

E Commerce partnerships that we referenced in the letter and the tag integrations that are now at 10 fold improvement over where we were in May.

And the SMB tools that we've done a lot of investment as we reference last call.

We are an important technology program for us this year mobile ads manager adds credits bid suggestions and our interest Academy those are all making it easier for small and medium businesses to onboard and see results from interest and that's what's going to drive growth going forward.

Your next question comes from Lloyd Wamsley of Deutsche Bank. Please go ahead, Sir your line is open.

Okay.

[noise] Lloyd Wamsley your line is open.

Well I would use those on mute.

Are you got Chris on her would.

Can you talk a little bit about how you guys just thinking about going around AD dollars with a focus on direct versus Brandon acquiring new users versus.

Versus new advertisers.

In the second part of our question.

You guys have always method that AD load really hasn't been a drain for you so that their content. So just curious if you guys are thinking about the possibility of giving away crushing and youve advertisers does that mean as a means of acquiring new advertisers.

Well I just to make sure I understand the question. When you were referring to as patent are you talking about ad spend.

To add a booster enhance interest platform or AD spend from our customers I just want to make sure unclear.

Yeah, you're on your own AD spend the then spending dollars either go out and acquire new advertisers for the platform our buyer needle.

Users.

Sure. So we're still in the early days of our marketing programs, but we're deploying them in a couple different ways first to your point.

We are working on using advertising dollars to acquire small medium sized businesses and really what we're looking to do there. He has built the program where we can make sure that the spend that we're having is can be recouped on a pretty pretty fast clip. So these programs take time, we invest pools of money, we look at the spend an advertiser yield and then we enjoy.

Yes that and see how it scales overtime, we think thats pretty important because it gives us a pipeline of small and medium sized businesses and then as we improve the offering with things like mobile ads manager quick promote credits and make it easier to take the risk out of a small and medium sized is just getting started we have a set of advertisers that we can start with.

On the consumer side, we haven't yet done at Big brand push we focused more on opportunities to reengage existing users who might have used interest in the past for one use case and we want to remind them. If a seasonal that comes back that we think they're interested in that interest to platform that can create value for them, we're talking internally about efforts to sort of build awareness.

This through brand, we haven't deployed big dollars against that just yet.

Oh you.

Question comes from Doug Anmuth of JP Morgan. Please go ahead. Your line is open.

Thanks, Ive to first Ben you are in the early days here of expanding Shoppable products on interest I'm, just hoping you could share what you've learned so far and how you feel like users are responding to the newer functionality and then second Todd you mentioned that you're serving adds in 28 countries.

Can you just talk more about what that actually means and how many of these countries do you have salespeople on the ground versus doing things more self serve and then can you also just talk about how it sounds like you will pause expansion into new Geos until you build scale on the existing markets and possibly how long that could take thanks.

Yeah. So on the question of shopping we break it into a few different buckets. The first one starts with on growing amount of really high quality.

Products that we have on the platform itself. So Todd mentioned, we launched catalog floater I'm, a little while ago, we've seen a really nice increase 75% quarter over quarter increased the number of catalogs that increasing.

We also now allowed us businesses Offloaded, a catalog to have a richer profile, where they can actually showcase off their goods. So a good example of this is barbecue guys, it's kind of a.

Barbecue focused company in Baton Rouge, they install grills I'm they were able to use products like catalog uploader and they saw a significant increase in the return on their shoppable spend I am so it really folds into their ability to promote and grow their business.

Second area that we think about is how do you take all of those products and match them to inspiring scenes and Thats, what our investments and things like computer vision really come into play.

What you'll see is more and more scenes will be matched products that can actually buy we started in home decor, we recently expanded that into areas like fashion.

And then the third and final piece is letting businesses, who want to spend money to promote their products have a richer set of shopping adds features and so those continue to roll out we took shop to look which has always been inorganic product for several months. We brought that into beta has paid product. So we're giving retailers more and more options to showcase their products.

Not just showing a product kind of light background, but actually showing inspiring seem.

Overall, we think it's going to be along the journey, but we're seeing really good progress the percentage of our users that are engaging with shopping products has increased significantly so.

We're seeing engagement roughly double since the beginning of the year.

And then Doug on the the second question on International.

You referenced how weve now localized our ads manager for 28 countries and that's up from seven at the end of last year.

What that means is that our ads manager product as localized meaning people can buy adds in those markets and we can serve adds in those markets does not mean that we have 28 regional sales office is spread across each of those those countries in fact.

Only a fraction of those 28 actually have sellers on the ground in offices and we cover those markets from regional hubs or through the self service product because that as managers now localized.

When you referenced a pause that we put in our letter what that means is that we've got a lot of opportunity in those markets outside of the U.S., particularly in English speaking countries and in western Europe , or while the product as localized and we have sellers on the ground. We have a lot of runway before we reach maturity in those markets and we want to make sure.

We are executing to potential before we get distracted in other places the real reason I put that in the latter was that I didnt want to have the question or react to the question in a quarter why Didnt you add nine more countries in the fourth quarter. The reason is that we're focused on the 28 that we've already started with.

Got it thank you both.

Your next question comes from Brian Fitzgerald of Wells Fargo. Please go ahead. Your line is open.

Thanks, guys.

As a no update in the on video usage and then letter so any color there this quarter or anything you can mention there because you noted is an area of strength last quarter.

Along the same lines you added video view objective in the quarter in August . So we know it's still early days, there, but anything you'd say about how the advertising.

Engaging with that.

And then maybe one last one is really quickly or cost of revenue per user the growth. There was a zero percent and how you're driving that efficiency. There and then can you perpetuate that thanks.

Yeah, Thanks try and so on on the video side it sounds like.

He was asking specifically about video ads in Q3 revenue from video formats grew significantly year over year, three X. I will we find its that advertisers they want to tell their stories of video and so we're building a lot of the Bakken features to improve upload speed I client performance analytics. We also launched a new cost per view objective in Q.

Three and that's really for advertisers.

Wanting to push that brand awareness goals I mean really less have focused how people viewing the majority of their video. So we're seeing a lot of moment sound like a great example would be Novartis cosmetics company that launched their new lipstick on interest using that cost per video view objective.

To launch a brand new product, we think it's going to continue to contribute significantly to revenue in the future.

And then the second part of the question was a gross margin related question on cost of revenue per user I would I would say that.

We have had tremendous success and I'm very proud of our infrastructure engineering team here, who is continued to drive optimization programs over the course of the year.

That's the principal driver because of the four point improvement in our gross margin from 67% to 71%.

In the late this quarter and so those optimization projects have been many a number and the cumulative impact has been been quite impressive I don't believe that we will continue to run the table on the effectiveness of those programs going forward, but I'm very proud of the successful they posted over the course of the last few.

Thanks, Ben Thanks, Todd.

Your next question comes from Keith Perry of Goldman Sachs. Please go ahead. Your line is open.

[noise] Heath Terry your line is open.

Sorry about that.

Mute button seems to be getting a lot of us today.

Just wanted to dig a little bit deeper into the the impact of some of the quarterly impact that some of these.

Product developments you.

You mentioned several of the ones that you had in Q2 sort of impacting the growth rate in Q2, I guess I'm, a little surprised that we didnt see more of a follow on impact into into Q3, and so I guess it it would be helpful. If you could kind of give us the.

Census sort of.

How those impacted and individual quarter.

And particularly as you go as as maybe we went from Q2 to Q3, where there was admittedly a few hundred basis point tougher comp.

Understanding kind of the deceleration.

Without those those those those new products are those products in Q3, if there's a on a better way for us to sort of understand the individual contribution in a in a given given quarter like that.

Thanks for the question here I think the basic messages, we we launched a lot of stuff that scaled really aggressively in Q3 in Q4 last year and while the innovation pipeline has continued and I'm very proud of the.

Product launches that we've made over the course of the last couple of quarters. Many of the things that we're talking about a very early stage and not having a meaningful impact today, but I think will drive growth going forward.

The thing to think about is and this is why I called it out in the guidance last time on the call is the impact of the scaling of our conversion optimization Prague product in our video awareness product last year was far more material and its impact than the newer launches that we made mid quarter in Q2.

I believe things that we announced like our performance video product R&D scaling and they're going to be important for our product portfolio.

The impact of those wasn't as material is the scaling of our conversion optimization and video awareness products in Q3 in Q4 last year.

Okay.

That's helpful and then.

To the exact realize this is one that that certainly further further out but can we get a bit about an update on the.

Commercial adoption that you're seeing with with shop, the look and I guess not just the commercial adoption, but also sort of where you feel the the technology is in and what kind of progress you feel like your you have in front of view on that the that product, maybe particularly as we go into the all important holiday shopping season.

Yeah, and Shapell look I'm as I mentioned before it's kind of in an early beta and when it comes to the pay product. It's been part of the organic product portfolio for quite a while your question more broadly sounds like you know how are we doing on shopping as a whole and I think we're making great progress, but we're building a lot of the permits that are building a shopping ecosystem. So.

We have to take care of the supply side, we can't happen right products. There that are relevant trustworthy retailers, there's not there's not a lot. We can do then we have to match them and so we've increased the verticals that we're applying our computer vision to bats are really significant step forward and.

And then some of the things that are new armies were beginning to look at early partnerships with folks like shopify to bring more inventory and but all these things work is an ecosystem our ambition over the long term you said whenever you see something inspiring with things that you can buy inside of it you can scroll down and tap in fine products that are relevant at your price point from utility Trust.

Your next question comes from Colin Sebastian of Bard. Please go ahead. Your line is open.

Thank you two for me. Please I wanted to ask about the sequential decline in R&D and sales and marketing I think on at least on a non-GAAP basis was there any timing issue in expenses like a conscious choice to before it goes some near term growth or any change in the strategy in terms of balancing.

Rose and investments versus profitability.

And secondly relationship with Shopify, just considering a lot of their platform relationships with Amazon in scrap when others are transactional in nature curious if there's a revenue share between you and them or how that relationship works. Thanks.

Thanks, Colin I'll start on the on the cost side.

We're continuing to invest for growth our year over year operating expense growth approached 40% in the quarter and so I would say the met a message here is that we're very much focused on scaling the company and we were growing our investments across every line in the income statement.

As you rightly pointed out that there was a sequential decline in the non-GAAP expense line and that was entirely driven by.

<unk> expenses. So there were two things in there one was payroll taxes associated with the our shoes that vested in Q2.

And then a couple of other militant couple of million dollars of other IPO related expenses. So if you strip out $20 million. There you can see that sequentially, we continued to increase investment quarter over quarter as well as significantly year over year, but I included those payroll taxes, because I wanted to be conservative. It's a cash expense will incur it every quarter going forward and so.

I didn't back it out last time, but that's why you see that noise in the in the quarter over quarter Opex line.

Yes, you know your second question was about Shopify and what I can share now instead, we're working with Shopify on building unique commerce experiences and we'll have more details to share in the year ahead.

Your next question comes from Justin Post of Bank of America Merrill Lynch. Please go ahead. Your line is open.

Great. Thank you the guidance for the year suggests a little bit more deceleration in Q4, I know you've kind of covered it a little bit but anything unusual in the holiday quarter, you're thinking about this year versus last and then maybe one for Ben I know one of the goals or the Companys is to expand verticals. So maybe you could talk a little bit about activity.

Levels, you're seeing on the site and then any new verticals or categories, you're seeing adoption and maybe things will be the attractive to the male demographic. Thank you.

So first on the the guidance question I would I go back the fundamental principle here is that we're investing in a bunch of new things around advertiser diversification that I think will bear fruit over the coming several quarters in years.

Those are principally around international coverage and around our Midmarket and SMB presence, which I'm delighted with the progress, we're making but it's just going to be a journey. We're still in the early days of that and it will unfold over a period of time the compare however versus a year ago was off of quarters, where we were already scaling those two products, we talked about earlier and so.

Theres a bit of a sequencing and timing difference there that's driving the real issues that you're seeing the points that you're making about Q3 in Q4.

There is a shorter holiday shopping period this year and I know that's been side and on a number of calls I don't know how to quantify that exactly but it's not upside for us.

And your your second question Justin was really about how we're thinking about expanding use cases.

The way that we think about it is we know that there is a core set of use cases of interest is really get out and think of your core lifestyle use cases, what do I wear what is my homework like what do I want to eat a special event, but we also know that a lot of users to come into interest to use it for one use case, but they don't go to a second and third or fourth or fifth use case and partly.

That's because the machine learning and personalization and be dealt in the past would actually recommend more of what you've seen so if you're using it for cooking, we're going to send you more and more cooking recommendations were doing a couple of things to change that I wanted to were introducing more diversity into the home. So we're building machine learning models that focus not only in the quality of recommendations based on what you've seen in it.

Pass, but we're beginning to introduce things that are adjacent steam I'd like to see in the future and as you ramp that up we'll get more and more sophisticated. We're also looking to add more functionality a lot more utilitarian functionality in the first example, being making it easy to five it seems you see what we're looking at things like collaboration so it's easier to work on group projects.

Great. Thank you.

Your next question comes from I guess I'll ever Onea of Wedbush Securities. Please go ahead. Your line is open.

Hey, Thanks, guys.

Just one when we think about the growth I guess I'd for Kunes kind of look out into next year.

What do you think is the right way think about the balance between the efforts you're putting behind engagement. The in inventory growth opportunity that you have and then pricing and a new and new product growth and then second the we'll wait to hear more on the shop <unk> shop, I partnership sounds really interesting just wonder.

During if if there any other e-commerce platform sort of marketplaces things like that that you're focused on and developing relationships in other areas of the market. Thanks.

Thanks, like when I think about the a the mix of effort and investments were putting behind things like monetizable supply growth product innovation sales coverage et cetera.

We're investing in all of the above we're trying to make pentrust more useful for our users and had been talked about the catalog feed ingestion to make shopping which has been one of the primary user questions for us and asks to make printers more shoppable, we didn't that'll bring new users onto the platform and drive supply.

We've got a concerted effort around use case diversification and Ben talked about tuning our home feed recommendations and personalized searches before that will convince people to use petrus or more things in their life.

And the comprehension marketing that we're beginning to test we think we'll bring churned users, who probably had a great experience planning a wedding, but need to be shown what else interest can be used for their life to come back.

All of those things will drive Monetizable supply in our product teams are focused on them.

At the same time, we've got a lot of work to do as we talked about earlier on just the blocking and tackling behind building in IADS business and a lot of the introductions that we've made on the product side had been designed to build the plumbing that we think we can scale overtime.

And the third thing we're investing in is the right go to market engine, whether that self service tools and marketing associated with that or the direct coverage model to address those very deep markets outside of the U.S., where we havent monetizable audience, that's quite under monetized today, but has enormous potential.

The other question was what other commerce players are working with and there are a number of other ecommerce players that were working with on tag integration and for US Tech integration is important because it's how is your spending money you can measure whether transaction actually happened in truth to return an AD spend so some of the folks that we've done integrations with included Google.

Tag manager.

So your say would commerce square.

And all of these again, our within tend to making sure that when an advertiser spends money, particularly like at retail objective. They can really understand the return an AD spend from that.

Thank you.

This completes the allotted time for questions I will now turn the call over to Ben Silberman for closing remarks.

Well I just wanted to thank everyone again for taking the time to join US. We appreciate the questions and we look forward to continue the conversation down about thanks.

This concludes today's conference call. Thank you for your participation you may now disconnect.