Q1 2020 Earnings Call
Welcome to the mobile first quarter fiscal year 2020, <unk> financial results Conference call.
All participants are in listen only mode and the conference is being recorded.
The presentation, there will be an opportunity to ask questions to join the question Q.
Then one on your telephone keypad should you need assistance during the conference call you May signal, one operator by pressing star and then zero.
I'd now like to turn the call conference over to Everest violent. Please go ahead.
You operator, good afternoon, and welcome to Mobiliare, its first quarter 2020 financial results Conference call.
Joining us from the company, our Simon Biddiscombe CEO.
Dot Hill CFO.
One of the coal will be remarks by Simon.
And Scott will provide details on the financials will then have time for questions.
If you're not received a copy of today's press release. Please go to mobilize Investor Relations website at investors got Hoagland Dot com.
Today's conference call contains forward looking statements that involve risks and uncertainties, including statements regarding mobile games revenue operating expenses, GAAP and non-GAAP financial metrics product releases projections and trends.
All of these forward looking statements are subject to a number of significant risks uncertainties assumptions.
Actual results could differ materially from the statements made on this call.
Please see the risk factor section of our 65.
All statements made on the call or me as of today, we assume no obligation and do not currently intend to update any such forward looking statements.
This call is reviewed after today the information presented during this call may not be current were accurate.
With regard to non-GAAP financial metrics.
We believe them to be helpful and understanding mobile aren't financial performance. They are not miss should be considered in isolation or as a substitute for comparable GAAP metrics.
Should only be read in conjunction with mobile irons consolidated financial statements prepared in accordance with gap.
A reconciliation of the non-GAAP financial metrics to the got metrics can be found in our press release and on the Investor Relations page of our website, we do not provide a reconciliation of.
Forward looking nongaap financial measures due to our inability to project certain charges in expenses.
Otherwise stated results share today will be non-GAAP.
At this time I would now like to turn the call over to Simon. Please go ahead.
Thank you Eric and good afternoon.
In my remarks today, I will share how cold it 19 has affected our business.
By the brief overview about first quarter financial performance.
On today's acquisition.
And then share some recent customer successes.
Scott I want to touch on how to covert 19 pandemic has affected mobilized how we're helping our customers.
First and most importantly, I'm thankful that I would team is safe and healthy and would remain at full force as a company.
I'm proud of our team sort of flexibility and continued efforts to strengthen mobileye and as a company even in the face of extraordinary adversity.
Our next anyone ever decades, the relevant urgency and value of the mobilizing offering the enterprise customers. The Corona bars pandemic has delivered unambiguous confirmation.
Virtual work required and twin security weather issue in more corporate owned devices for enabling a b Y O B program.
Employees, who are now at home and to meet connect securely and seamlessly to corporate applications. This is exactly what mobilized reliably deliver.
That's the dimensions of the pandemic first came into view and remote work was becoming the norm, we assemble though north American and Yeah me a customer advisory panels composed of some of our largest customers.
Well I understand what they were going through and how we could help.
We had two message is very clearly first we are central to their efforts to keep their employees connected and secure and second mobile and customers entered the skewed <unk> virtual work confident and I was solutions because our products just work.
Absolutely imperative in this environment.
We quickly long I will work from home campaign, which was centered around enabling a remote workforce globally.
Campaign was designed to help both current customers and prospects support the needs of their employees.
Let's talk this campaign, we made new seats free until mid June So enterprises can deploy would like to late.
In addition, we released content to teach I.T. admins every step of enabling new remote workforce.
In concept with these assets, we launched marketing reach from social to search to Webinars to ensure the message the mobile lines supports work from home spread rapidly and widely.
We currently continue to see a strong reception from these initiatives.
In addition.
Customer by customer we've checked in with our customers to ensure that they have what they needed for us to support the challenges.
Alone would stay in tightly attuned to the a bulking situation, where we have and will continue to maintain close contact with our customers and partners to understand her that needs a ball.
Mobile I am has always had a strong footprint in regulated industries and we see in broader use of our technology across verticals, such as financial services energy government and incorporate health care.
Not only are we enabling work from home, but mobile and technology is being used to enable fundraising patient care and even to help patients corona buyers to communicate the times.
In one instance, mobilizing teamed up with a channel partner and displayed our innovative spirit in the face of a vital meat and turned mobile and managed Android devices into hot spots for school district to help underprivileged families access the internet to enable school from home.
With that all said the sheltering place mandates across the globe have disrupted I would normally go to market activities some about what our drivers.
The priorities of ITD, just clearly shifted.
While in January and February we were happened the bus conversations about eliminate them passwords from zero Sino modernizing our customs architectures by moving to the climbed the focus by T. lead has shifted to ramping a remote workforce.
As a result, the realization of certain they are out growth opportunities is delayed until the immediate sense of crisis is replaced by a new normal.
Digital transformation within the enterprise immediately accelerates when our customers and they believe workforce has to be productive when virtually every interaction is digital I.
Hi, TV does have an unprecedented influence to drive to technologies that enable people to connect.
In this environment I believe mobile line, a trusted vendor skews communication between employees on premise and type services is becoming even more strategically critical.
In a new normal there's a wide industry analyst consensus that I T will enable more employees to promote and as I do see notes reliable authentication VPN data protection and the endpoint management will be highly valued.
<unk> endpoint footprint. It is clear I will like we yeah threat defense and Zerust sign on deliver this to the new world.
In particular highly regulated verticals like government health care and financials will be forced to move faster and these are verticals I will solutions thrive and because of our unmatched security posture and certifications.
No provides an overview of our first quarter results.
Revenue in the first quarter was $49.7 million above the high end of our guidance range up 3% year over year.
They are all growth came in at 8.2% for the quarter.
We did an excellent job managing spending Q1 and that produced favorable results in gross margin and operating expenses.
With this we strengthened our balance sheet and added more than $4 million in cash to ended the quarter at just under $100 million in cash.
We continue to have no debt.
Last quarter, we should have we would accelerate our transition to a subscription led recurring revenue model.
This entails two changes travel business and Twentytwenty.
We will stop selling new perpetual licenses as of the end of Q2, and we formally launched our assets proactively help customers moved their mobile and capabilities Htwo type solution.
Each of these initiatives are aligned with trends, we have seen with auto customers and them off that large.
It was clearly evident the customer preferences shifted in recent years increasingly away from perpetual licenses to what I was subscription model and inquiries in particular.
I'm also reflected in our revenue on Iraq trends.
In Q1, I Wasnt quite revenue grew 22%, while I won't perpetual license declined 24%.
Additionally, in the first quarter, we saw some promising signs regarding our initiative to support our on premise maintenance customers and the efforts to move to the type.
This began to slow in March lets customers priorities shifted.
Turning now to today's acquisition announcement.
I'm very pleased to names that we have acquired and captive connect a leader in mobile I am absolutely software, which is a critical component application development and distribution.
Coptic wasn't offering our marketplace and we saw significant interest in this solution across multiple verticals.
And captive automates the process validation b.
It is ready and then publishes the after the enterprise catalog and public App stores process normally fraught with inefficiency and most enterprises.
To mobilize and I T Department can publish the app within captive technology amended leverage you yen to automatically deployed the app workforces mobile devices instant use creating a turnkey solution.
On the technology integration the selling to the same I T buying centers you. Yeah. This is an extremely synergistic combination and I'm thrilled to welcome being tempted team to mobile.
And with that I would like to touch on some customer wins in the quarter.
I'm pleased to share that we closed a new deal with Avery Dennison globally, the materials science and manufacturing.
They business they grew across the numerous mobile devices apps, a fortune 500 company with a 30000 worldwide employees Avery Dennison selected that was quite good accessing threat defense offerings fully embracing I was zero Trust security approach will the lions ability to offer intelligent authentication and a seamless user.
Our experience, while keeping important business state to secure will enhance their productivity and fundamentally change the way they can work.
In fact that that mobile and can play a role in helping this business continued to operate efficiently with the up most security.
It is clear that young going crisis has necessitated the improvement that's companies technology and mobile infrastructure and this transition takes needs to take place quickly mobileye is on its tonight's that one of its longtime customers a prestigious Midwest and medical center. The prides itself in providing best in class patient care decided.
The quarter to expand their relationship with US. These healthcare workers are touching on the front lines Tech health and safety, if the public and I'm honored that mobile lines able to assist with this battle.
We have acclaimed offering they are able to streamline the clinical communication workflows Cobot 19 response center by simplifying and access to import medicine data to I phones.
I talk to my sincere thanks, congrats to to help when it comes at the forefront of this pandemic.
We're excited to announce that we expanded our long term relationship with ball Corporation, a fortune 500 provider of metal products and in beverage packaging to aerospace.
Stranger to mobilize bowl has been a customer since 2012, I think Q1, they decided to add access an MTD to strengthen their mobile security posture.
For a company with a global work force over 18000, they became increasingly aware of the need to secure all of their best in breed cloud services and protect against external threats.
Demobilize streamlined user interface simple rollout process and I was strong mobile threat mitigation capabilities. It was easy decision for both to make.
Ended in 18, ATM or the rich history, all clearly understands the importance of keeping up the changing times and I'm honored to Mobileye and can help secure their workforce to the next chapter.
And finally, we announced the deal would see and Pete Spain's National Police Force mission of C. N. P is protect Spanish citizens rights and freedoms, along with a safety.
He is well aware of integral role, but state of the mobility solutions played in helping the men and women if the police force carrier that vision.
Behind the strength of our mobile I'm core product you only Yemen product compliance Spain's National Security scheme defined by day, a central Intelligence agency CMP saw an opportunity to modernize tools used by the national police.
This deal speaks volumes about mobile items best in breed offerings and I'm on it that mobile and can be the cornerstone in C. N piece transition to a modern way of work.
And with that I'll turn the call open Scott.
Thank you Simon and good afternoon today, we will be discussing non-GAAP financial measures unless otherwise noted.
Our press release form 8-K, and website investors Dot mobile iron Dotcom provide a reconciliation of GAAP to non-GAAP financial results.
Now I'll review the financials.
Revenue in the first quarter was $49.7 million for growth of 3% year over year and $700000 above the high end of our guidance range.
Revenue was led by cloud, which grew 22% and was almost 40% of total revenue.
We continue to see progress in the U.S., where revenue was up 8% year over year.
We ended the first quarter when they are $181 million for growth of 8.2% year over year, our subscription air our was $115 million.
15% year over year, and our maintenance air our with $65.5 million down 2% from last year.
As a reminder, beginning this quarter, we have moved from reporting the fleet renewal rate to dollar based net retention.
We believe this standard fast metric is a more complete measure of retention and highlights our success upselling our products into our existing customers.
Our dollar based net retention came in at 103%.
Gross margin in the first quarter was 80% above the high end of our guidance and operating expenses were $43.7 million below the low end of our guidance range.
Gross margin upside was in part driven by higher than expected sales of perpetual licenses and favorability in operating expenses was largely a result of work from home activity.
We reported an operating loss of $4 million.
Net loss was $4.5 million.
Or a loss of four cents on a per share basis.
Moving to the balance sheet, we ended the quarter with $99 million in cash and short term investments and have no debt.
In the first quarter cash flow from operations was $7.2 million.
We spent $700000 from purchasing shares.
Unearned revenue was $114 million at the end of March up 11% from $103 million a year ago.
And now I'll discuss our outlook.
Simon mentioned the work from home mandate brought about by covert 19.
Cost headwinds to some of our air our growth drivers beginning in March.
Because they're still considerable uncertainty around the timing of a return to a more normal sales environment, we feel that it's prudent to withdraw our full year air our guidance at this time.
However, given our strong first quarter results and recurring revenue base. We see no reason at this time to change our original revenue and operating margin guidance for the full year.
For the second quarter of 2020, our guidance is as follows.
We are projecting revenue in the range of $49 million to $52 million or roughly flat at the midpoint year over year.
We expect to end the quarter with era between 181 and $185 million for growth of 5% to 8% year over year.
We expect non-GAAP gross margin can be approximately 79%, we expect non-GAAP operating expenses to be approximately $43 million.
I would also like to highlight that with $99 million in cash and no debt. We believe we have sufficient liquidity to navigate the current environment and our transition to a subscription led business.
And with that we can open up the line for questions.
At this time I would like to remind everyone.
Good question. Please press Star then the number one on your telephone keypad, if you'd like to withdraw your question. Please press the pound Keith.
First question comes from Chad Bennett with Craig Hallum. Please go ahead.
Great. Thanks for taking my question, guys and hopefully everybody see unhealthy it sounds like it is nice job on the quarter executing in a tough environment I.
I I guess first for Simon you know <unk> kind of what are the puts and takes I mean it in terms of you site in the press release, you know, which you're not the only one that go to market activities and you've seen some delays there due to the environment, we're in but also.
So I mean, you seem like the primary beneficiary of work from homes a in in the space you live in.
And you know I would think you know that that cloud transition a that you guys are are heading into you know this would only potentially accelerate that can you just kinda give me some sense of the puts and takes in terms of how you.
No what you're seeing in the pipeline, if if anything's changing there.
Sure.
Thanks, Thanks for the the can remarks, and I hope you are all safe and healthy as well yeah look I as I said in my prepared remarks virtual work work from home remote employees. However, you want to characterize it requires entwined security and that's exactly what we deliver customers have been relying on us to use to make them successful in it.
Line on us more today than ever before as it relates to driving those remote work force initiatives and they know they can trust us as it relates to delivering for them.
Technologies more strategically critical than it has been extended period and that's actually appropriate as you pointed out Chad the U.M. set of capabilities. So that you yam capability becomes that much more critical component in enabling a <unk> workforce and the OEM business was ahead of plan in Q1, and we expected to be ahead of time in Q.
Two as well and then additional actually pleased with the programs would run in the very specific campaigns associated with with work from home and the fact that then generate an incremental pipeline that will contribute not only in the near term and in the long term 12, okay.
So Nike or your specific question relative to the cloud component the vast majority of our new logos on claim platforms, but if you think about.
[laughter] customer base is still a tremendous amount of that that is on a maintenance agreement than an on prem solution in many instances and as those customers expand lumps the not gonna see an eight uptick beyond the maintenance component, but we will continue to see more perpetual license from that set of customers.
Well I'm more concerned is as it relates to those kind of transformational initiatives that I will customers have begun in Bakken on where we're starting to see them slogan every CIO I told to every significant customers focused on the neighborhood remote Lukas and making sure that we experienced the work has as their coal.
And that remote location is as good as it possibly can be and we've got customers were asking us to actually slowed down the release of the new versions of U.M. sites, because they wants to guarantee that would be no disruptions their employees and they work from home experiences and so so it's a combination of things the.
The biggest driver isn't a on the back half of your that we talked about previously called the claim transitions and on premise quite transitional and then the zero sign on technologies. Yeah. Those those initiatives are certainly getting pushed as our customers I'm more focused on driving the work from home scenarios, but yeah.
Certainly benefited from that but the biggest problem. The installed base is obviously on prime and drive maintenance soft drinks.
Okay, maybe a couple of quick ones for me after that.
I I know Scott mentioned, I think fairly decent performance out of the the U.S. team.
Can you just comment on EMEA and if we're seeing any kind of improved execution there.
Actually it's a challenging environment.
In Europe, right now but.
Are we seeing any any improvement out of the EMEA team.
[noise], so even though the me as so pretty much.
Similar situation to what we haven't seen an improvement obviously, we had slight growth for the quarter in terms of revenue standpoint, but the situation to me is largely largely been the same in terms of its [noise].
Okay, and then last one.
Scott Scott It you know, it's it's good to see the dollar and net expansion a metric come out I guess in terms of.
You know yeah, I know you don't want to kind of look backward looking on that metric, but if we think about you ended the quarter you we product and then the upselling of of the other two major products MTD an access.
You know would you expect that net expansion number of one or threed to improve from where it is.
Or is there some risk that you know in the current environment you knew that the churn aspect to that number you know is more of a headwind. Thanks.
Yeah. Thanks, Ted it's it's some really.
You know that number is a function of both our kindergarten or you young business, which has signed a highlight it is.
Yeah exceeding our expectations at this point and the upsell products that we haven't cloud, which are the ones that are you know I'm being challenged in terms of the timing.
So my expectation is that that metric will track where our.
And as we guided Q2 air our it's down slightly from all but we have to midpoint of guidance is down slightly from what we had a coupon.
Okay. Thanks, guys.
Thanks.
Next question comes to Raimo Lenschow with Barclays. Please go ahead.
Eight and thank you and I hope you buy sifting safe as well.
Yeah.
Thank you Simon the the first question I had its like and if you think about like he our guidance versus revenue guidance can you talk us through that because they are should be does it kind of to more steady number versus you know like because it's a it's it's all predictable revenue. So your move data, but can you kind of keep the revenue.
Can you talk a little bit about the you're thinking and your dynamic there and then as Scott like operating cash flow Q1 was really strong can you just kind of comment a little bit of what you saw in Q1 and what it means for the rest of the year. Thank you.
Sure Let me I'll, let me pick 'em first habit both of those so first off on the air our versus revenue question. So revenue, obviously picks up our onetime revenue that we have which is primarily perpetual license and as we talked about kind of the the frankly see and you will.
Relative to our expectations revenue as a beneficiary of that the second thing is revenue obviously is a function of the deferred revenue that we have coming off the balance sheet from our subscriptions that we booked over the last 12 months.
And so all of that carries forward into the second half of the year.
Well, you know basically a bit of the momentum that we've had here both in terms of you Yemen and what we've done in the past err on the other hand is more obviously, it's driven largely by subscriptions and our cloud business. Our club business has those upsell products. The transformational offerings Simon mentioned and so those are the ones that you know we have.
I guess a bit more I'm concerned for regarding the timing of when when when those come to be so that is the dynamics between those two metrics.
In terms of cash flow from the quarter, yes. It was a strong it's seasonally is strong in Q1 as a result.
Business, we book in Q4.
And we just had a relatively good.
The quarter in terms of collections on on that particular front.
The strength.
Yeah, Okay perfect right.
Right I'm Gonna have had one thing to it because I understand you concerned about onetime revenue and the lack of predictability in the back half of times don't forget. We we have said, we're going to stop selling perpetual on June Thirtyth. So my expectation for one time perpetual revenue asked to June Thirtyth is essentially zero in the back out to your eye. So.
So you take away a lot of one codes caused the historical variability by not having it in the plans for the back half.
Yeah, that's true for point no okay. Good <unk>.
<unk>. Thank you hey, they say thanks Ryan.
Your next question comes from Scott.
Capital. Please go ahead.
Good afternoon, Thanks for taking my questions a nice job on the quarter a nice job on the outlook. It's good to hear you guys are doing well as well thanks.
He Simon just to dig in a little bit more in the work from home opportunity could you take us through what that does to the opportunity in terms of a pricing number of devices that are covered and also in terms of how that backlog is building. Now you said you won't be billing until June so what kind of a pipeline of incremental subscriptions do you have that's building on that work from home market.
Yes.
So, let's let's start with the highest level question Salt, which is what is the penetration rate in how are we seeing that change at this point in time right. So if you look historically we will.
Most recently beside the penetration rate I went technologies into our existing installed base of customers. It's somewhere in the 40, 45% range. Okay. So all that off the employees and customers, 40% to 45%, we're using mobile technology. So this significant upside opportunity associated with that set of customers.
As we move forward now we've got certain assumptions around what that penetration is gonna be but it's even today. It's too early to know exactly how that's going to parent we want more and more data points grind higher oil customers are going to continue to use our technology as we move forward part of it is it gets a part of the subset of customers is using the technology.
Century for free until June 15th at this point in time, if you were an existing customer you were able to ramp back without necessarily coming back to US near term played we can see it fit on the on premise product, we caught necessarily see youve added more devices to the technology on some so so there's still significant upside associated with penetrate.
And that we can achieve in the installed base. Okay and then the program themselves based on what I know from the specific opportunities that we're tracking on a day to day basis offer significant upside both indeed in the install base, but also with new logos as well, there's a big piece of the work from home campaign.
Pipeline, that's a new logos at this point in time, and that's primarily cloud and primarily obviously subscription at that point in time, Gotcha, and Simon, though but the ARPU is would that should be going up as well is that correct. Because you have an attach rate of additional services beyond just basic do we you have access Fritz will yeah, yeah, unless you've got a really big.
Emailed me kind of use case, the likelihood buying something more than just I would most basic set of capabilities you buying something like my platinum bundle and then you've got upsells associated with threat and the zero sign on access based technologies. In addition to that as well. So yeah, we would not be an I'd ask you challenges at this point in time, that's for sure Scott.
Gotcha, and just quickly on the acquisition in captive it sounds like you're able to build out your ecosystem. There are a little bit more in basically or accelerate throughput in terms of bringing in an expanding that ecosystem and applications to marketplace. How big was it can you give us some financial matters rented or number of employees or something to provide a little color. Thank you, yes or no.
So it's a classic example of a technology tuck in.
It's going to cost of $6 million. So it's a very small amount of the total cash in the company that will be put to work for in capital and as I said in my prepared remarks, what and kept it does actually automate the processing validating apps and making sure they get published into the various different app stores that are necessary.
We've always been part of that process. Scott If you will publishing into an enterprise App store and connect our App wrapping technology was often part of how companies did that and this technology that and kept it has its highly adjacent to that specific capabilities. So if you think about no you get you gotten amp from a neat.
Total development team or you get it from an App design studio whoever it may be and then it falls on high teens data to make sure that.
Does that sanity, it's not.
Maintaining personal personally identifiable information and so on that planning process you got the App rapid process, you've got security processes, and then you've got to deploy it and walk the in haptics solution does is a lag that the orchestration event in a much clean away than you otherwise could okay. So it's a very adjacent technologies classic.
Technology Tuck in Great example, is something we're going to be able to take through our existing customer base and you've already close to us deal under the under the arrangement.
The second part your question I'm not going to talk about how much revenues is presume it's de Minimis at this point in time.
In terms of the number of people at close it's about 15 people in total, but we'll be bringing into the organization.
Okay, Great and lastly, if I could just on the zero Trust front it sounds like given the current climate things slide a little bit to the right in terms of deployment in time like could you just give us your your broad based thoughts on when we should expect to see in here a little bit more about that and Oh. Thanks, and glad you guys are sound like you're hill healthy unsafe and continue to do so thanks.
Yeah.
Well I don't want to give you the impression studies that will not aggressively continuing to develop that we are we are moving ahead, 100% on everything we're doing around zero sign on Buyside density at this point in time.
Customers hurdles slower responding to it at this point in time. So we'll update you again in 90 days, obviously on the progress that we've seen would actually have some milestones over the course the last few months for government customers using the newest features of zero sign on including some things associated with Max.
As opposed to iOS and Android devices and swaps. We've got some new new features that customers have started to adopt but well. We'll update you are 90 days on what we're seeing from an overall trajectory perspective.
Great. Thank you.
Thank you.
Your next question comes from Robert Magic with Raymond James. Please go ahead.
Good to hear everyone is well unhealthy congrats on the solid results this quarter.
Simon can you just help us understand any potential expansion within your existing customer base, our customer's going to you and materially adding licenses right now and covered work from home environment. In it. So are these longer term contracts or are you offering shorter term contracts and how was your pricing strategy on these new seats or perhaps phelps is different.
Perhaps relative to what you might start requires it go that.
Yes, there's no I'll do the second piece first and then I'll do the first because there's no. There's no change in pricing strategy at this point in time relative to pre Covidien and post cogan other than the fact that in order to get customers onto the platform and able to enable their workforces quickly we made the product free but the period.
I'd have a through June 15th right. So we made the product for you just got people move and make it easy forever, but forget their courses at home safe and secure insulin.
In terms of asked me the first part again, rather it was penetration right what are we seeing pipelines one.
Yeah are you seeing that take that right now.
No nothing that's coming on safe.
Yeah, no we actually have to young and that's that's at the heart of the performance of the OEM business and the guiding Q2, specifically.
Is the fact that was stop and see customers continue to expand their footprint with our technology and as I said, it's especially relevant in highly regulated industries youre industry, what we've seen in government, what we're seeing that health care and so on those the customers who when they move to a remote workforce [laughter] to make sure that information is secure.
And that's where we're seeing the greatest opportunity at this point in time.
Thanks, Simon just just one more for me or customers asking for concessions bright perhaps price cuts better payment terms or production in volume agreements are you handling those requests and how many that I'm hassle free this year.
So I'm actually going to say I haven't seen it Robert but I'm going to stop as well succeed more of just tactical details behind transactions I don't think we see it Scott.
We have we haven't our working capital ratios in Q1 were consistent with history. We had a few one offs requests for some flexibility around in terms, but it is it has been pretty much ad hoc.
Hi, what I would add though Robert it's very cognizant of you know by vertical where I work revenue streams are what I will receivables Armstrong and while this business has always been strongest.
In highly regulated industries and government and so on we do have customers that fall into a verticals are going to be under pressure I. We don't have much in aerospace for example, we got much in hospitality, but we got retail as part of the customer base that that's certainly going to be in some form of pressure in the near term and so I'm. So we're very cognizant of the fact as a part of the revenue.
Stream that may have not only collected gokey issues associated with it but no questions about long term sustainability of some of these businesses.
Thanks, a lot.
There were no further telephonic questions at this time I'll turn the call back to Simon Biddiscombe for closing remarks.
Well thanks for attending today's call.
We hope that you all remain safe and healthy during this very difficult time, when we look forward to updating you on our progress again next quarter. Thank you again for attending.
Right.
This concludes today's conference call. Thank you for funding you may now disconnect.
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