Q3 2020 Cloudflare Inc Earnings Call
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I can help it this time can you tell.
I look at you ma'am and my pain too.
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Non-GAAP net loss for sure sure was outstanding non-GAAP operating expenses free Cashflow non-GAAP effective tax rate dollar based on that retention rate free and paying customers and large customers.
Statements and other comments or not guarantee the future performance, but rather are subject to risks and uncertainty some of which are beyond our control, including but not limited to the extent and duration of the impact of the COVID-19 pandemic in adverse conditions in the general domestic and global economic markets are actual results may differ cigna.
$10 per year with that these large customers accounted for 47% of our total revenue in Q3, and we anticipate they will make up more than half of our revenue going forward.
Did to working from home in two weeks, we saw more than 50% growth in traffic more than we had forecast for 12 months at.
At the same time, our team had to adjust to working remotely product managers and engineers had to figure out how to develop innovative new products without gathering around a physical whiteboard. Our go to market teams had to adjust the selling to customers without ever meeting them in person and we had to learn how to continue to hire and onboard great new members of our team without them ever stepping into an office.
Members and customers more than ever before the world has never need of better internet more than it has over the last nine months and our team wakes up excited every day to deliver exactly that for our customers.
And we believe it's the sweet that is unmatched in the market.
And the skyrocketing demand.
And as much light intelligent edge storage is it is by computing and while others are still working to launch their edge computing platforms. We have products like durable object in market that are defining that users today.
Before I hand, it off to Thomas I wanted to close by talking about three more fortune 500, large enterprise customers, whose business we won in Q3.
A fortune 500, industrial manufacturing company came to us to consolidate multiple vendors and products into a single unified platform. They replaced discrete network optimization load balancing and bought management vendors with cloud glare in order to indices. Those words have a single pane of glass to understand and control whats happening on their network. They signed a $1.4 million annual contract in Q3.
At least with particular strength in do you asked anemia.
Increasing 58% year over year.
The us represented 52% of revenue follow international business represented 48% of revenue and increased 51% year over year.
Turning to our customer metrics, we exited the quarter with more than $3 2 million total free and paying customer representing an increase of 40% year over year.
And Q3, we achieved exciting milestone of over 100000 paying customers, adding roughly 4800 sequentially.
We also had another rechtlich quarter of large customer edition, which we define as paying customers with greater than $100000, an annualized revenue adding.
Adding roughly 100 large customer sequentially and 285 large customers here over a year.
We ended the quarter was 736 large customers, representing an increase of 63% year over year, which particular strengths in North America. We've.
We've shown 60% plus year over year large customer growth every quarter since the first quarter of 2018 with large customers now approaching almost half hour total revenue.
Quarter last year.
Research and development expenses were $23.5 million in the quarter, representing an increase of 11% sequentially and 17% year over year.
R&D as a percentage of revenue remained flat sequentially and decreased 21% from 27% in the same quarter last year.
General and administrative expenses were $18 million for the quarter, representing an increase of 3% sequentially and 14% year over year.
Gene a is the percentage of revenue was 16% representing a decrease of 2% sequentially and 6% year over year.
Scaling our business efficiently remains a top priority and we continue to see acceleration in operating leverage in the third quarter with operating margins improving over 2000 basis points year over year, and 550 basis points sequentially.
Operating loss was $4.5 million compared to $18.1 million in the same period last year, there's been hiring aggressively and expect to continue to invest behind this success, we see in topline revenue.
Net loss in the quarter was $5.7 million or net loss per share of two cents, our effective tax rate for Q3 was negative 22%.
Turning to the balance sheet, we ended the third quarter with $1.1 billion in cash cash equivalents and available for sale securities.
Free cash flow was negative $17.9 million or 16% of revenue compared to negative $33.6 million or 45% of revenue in the same period last year.
Operating cash flow was positive $2 million in the third quarter of 1.7% of revenue, which decreased $2 million sequentially and increased $19.8 million year over year.
Q3 operating cash flow was helped by an increase in cash profitability, while offset by our annual fee and no insurance payment as well as changes in working capital.
Our dsos trended down slightly quarter over quarter and remained well within the historical range to three network Capex was 11% of revenue and we expected to trend down as a percent of revenue in the fourth quarter.
Before moving to guidance for the fourth quarter and full year I would like to provide another update on the cobot related impacts and associated provisions, we shared last quarter.
You may recall on our first quarter earnings call, we disclose the customers highly affected by corporate related challenges, particularly those that macro sensitive industries, such as transportation hospitality and retail represented 8% of our business in Q2 and Q3 this cohort.
Bilbo cloth network.
Given the momentum we're seeing the ability of our model and our differentiation competitors will remain confident in the continued growth of all business and as such are pleased to race guidance for both the quarter and full year.
For the fourth quarter, we expect revenue in the range of $117 518.5 million dollar representing an increase of 40% to 41% year over year.
Expect operating loss in the range of $10 million to $9 million and we expect.
<unk> net loss per share in the range of four to three.
Assuming approximately three and that 4 million come in shares outstanding.
We expect an effective tax rate of negative 13%.
For the full year 2020, we expect revenue in the range of $422 five two $423 $5 million.
Representing an increase of 47% to 48% year over year.
We expect operating loss for the full year in the range of $38 million to $37 million for.
We expect net loss per share over that period in the range of 30 to 12 cents, assuming approximately 300 million common shares outstanding.
We expect in the effective tax rate for 2020 of negative 12.4%.
We'd also like to inform you that we will be hosting a virtual investor date on February 12th 2021, but we look forward to providing a deep dive into our products and our platform.
In addition, we will also be providing an update on our financial progress and targets for fiscal 2021.
In closing I again want to thank our employees for delivering these crates ourselves and for the continued dedication to our customers and global community and with that I'd like to open it up for questions operator piece pull for question.
Certainly as a reminder to ask a question you will need to press star one on your telephone to withdraw your question cost a pound our husky. Please stand by while we compiled a Q&A rosner.
Callipers, that's not people, who created accounts, but that's actually written code and deployed it across our network. So they really have some skin in the game and and that's been that's been a real real involvement across our our customers as we sign the the the percentage that adopt workers are are holding pretty steady around 20%.
Of new customers coming on board on a contracted basis are adopting the workers platform as as we've talked about before we think that there is really kind of a short medium and long term opportunity for workers. The short term opportunity as it makes all of our existing products than most programmable and Configurable version in the market. So the most programmable.
Firewall the most programmable zero trust solution, the most of it but <unk> programmable load balancer, that's what workers really delivers and that's where the bulk of the sort of new customers are coming from the medium term solution is it is the platform that allows our own team to innovate as quickly as we have so all clockwork or teams was built using the work.
There's platform and we really think that the best development platform, but first first customer of those platforms are is the company that builds them themselves and that's the rule that we're following and the long term opportunity, which frankly as I see that more and more sophisticated applications are being written in and we gave a number of examples on the call, but what I'm.
I'm really excited about is how the sort of large financial institution health care organization consumer applications that are there are existing on a global basis that those companies with really sophisticated compute need orange chief increasingly seeing workers add a platform. They can they can do something with that they really can't.
Do on any other platform. So we've been really happy with the with it again I think it's gonna be sort of a short medium and long term opportunity for the long term you know keeps getting closer and closer every day.
That makes a lot sense. Thank you.
Your next question comes from the line have <unk> with Jeffries. Your line is open.
Yeah.
Good afternoon, Matthew on a 10 million dollar transaction I'm curious if you could just provide a little more high level of color on what's happening there how much opportunities left and anything else. You can you can give to fill in a great transaction for you guys and then for Thomas just a couple of questions on the <unk>.
Guide good acceleration this quarter, but you obviously got into a diesel in queue for I realize you have a tougher comp in queue for cough from last year, but anything to keep in mind, given given the deceleration Keith.
Q3 to coupons for as of the year over year, just put in perspective. Thank you.
I'm glad you asked maybe be easy questions and Thomas the hard questions. So thank you for that we so so that the $10 million customer as bad as I mentioned, a customer with us since 2016, I think the thing that you know is it we see over and over again is that <unk> not only organization, but individuals.
That fall in love with US four hour pay as you go and even our free products often will then bring us to work and that has allowed us to very quickly build a a very loyal fanbase in almost every I T organization in the world and it really differentiates us.
That that customer is using us for a number of our web performance as well as our security products. They tend to be our older products. The products around you danced mitigation Wap and and others are increasingly looking at adopting other products across across their platform, including bought me.
Management, and maybe even a clockwork routines uhm product. So I I think that we have been able to grow with them. We have become a key part of their network. We are are able to continue their a number of different ways. We can continue to expand their relationship with that customer and I think that this is a while this is the first of our 10.
A million dollars customers. There there you know we we we we think that with anyone who's a fortune 500 company. There is an opportunity for us to have a similar level of penetration.
[noise], becoming Doctor Guy then so I can get a couple of appointments to make first of all we are you know police that they're able to raise though of guidance again those for the closet as well as for the year. A couple of things are coming together, they're keen froze right for the third quarter was 52 person and we look.
At two four with a really difficult compare growing interest you want me to send you over a year in the fourth quarter of last year and you know we are still in the middle of of the Covid crisis with maybe a second great pitching. So there's also uncertainty in there in the market.
This is going to affect the macro sector. So I think or do you see as a poodle guidance. The the chose confidence in the business Marlboro keeps the tough compare in mind and let's not forget this gets us to a growth rate for the year of 47% to 48%.
Thank you.
Your next question comes from James Smith, what type of Sandler Your line is open.
Hey, guys. Thanks for the question Great quarter, you know what one question, we're getting as as you guys look to move hop market and really get into somebody's like Fortune 500 customers. How do you guys feel about the need for additional sales capacity and more direct wrap so we traditionally know cloud for for being able to just go.
<unk> you have a website for example, or what kind of a low touch model. So I guess, how do you feel about your sales capacity and need for additional support.
Yeah I appreciate that question so the <unk>.
I I I think that we have a very diversified go to market Uhm strategy, we are able to sign people up at on a come in put in your credit card, but as we said in previous calls and it's continued to be the case on on on this and cute three that as a smaller and smaller percentage.
Of our our revenue in and today as well under under 20% of revenue and I think it has as as we've written about in in and our boundaries letter in the X. One in in the updated boundaries letter that we wrote before being able to serve everyone and being able to build relationships with those.
Duels and those developers that can sign up for their own account, even though it doesn't account for a substantial portion of our revenue. It has driven a lot of marketing benefit and it gives us a really strong a relationship in a really developer love, which which helps us when we're trying to win those large customers in terms of sales goodbye.
<unk>, we have a we have a we continue to move up market. We support customers. We we don't believe that you can do what we do without having a sales team and so we have we started with an inside sales team early on and in a club road history. We know increasingly have a direct sales team with experienced sales later.
<unk> that have come from other enterprise companies that have really been able to you know thrive over over time and I think one of one of the people who's been very helpful. And this is Mark Anderson on our board, who obviously came from you know a number of great Enterprise sales organization. That's what has allowed us to continue to scale. So we.
We have great day, all capacity, we've been hiring one of the things we've been amazing is that during this time when a lot of people have pulled back hiring we've actually stepped on the gas and the caliber of the team as a whole and in particular the caliber of the team that were being able to attract in our field sales organization really I think is is you're gonna look bad.
And say Wow, there was an incredible opportunity that they had during during this particular time and they took advantage of it.
Got it that's that's helpful and then Matthew no amount of product announcements over the last few months with things like browser isolation and we'd go down the list, but you know what's next I mean, where do you see the clock for a platform is next apples handling could we see something identity for example.
You know I think that are thought on identity has been that we we really think partnering is the right place companies have largely made their cats on what their identity management companies are gonna be and so we're working with great companies like <unk> Ping identity Microsoft.
In order to in order to integrate their existing identity solutions. When do you think though that we think is powerful and that we're hearing from customers is that they often tend not to have one identity provider. They may have their contractors using one provider and their internal employees using another and that could either be just.
The complexity of running a business it could be because that's M&A activity, but what powerful about the clock over teams products and especially our access and gateway product is that they can really rationalize the complexity of those various identity providers and say you can mix and match after plus micro.
[noise] soft active directory, plus you know what might be a more consumer facing uhm identity provider for contractors like a link then or or or get hot and use one control plane provided by Cloudware in order to in order to deliver that so I think that that's fine. That's an area I think it's unlikely that we will go into directly I think it's in.
<unk> were much more likely to partner in but I think it is a way that uhm, we can help simplify that complex setups that a number of people have.
Got it congrats.
Thanks.
Your next question comes from not Hedberg with our B C capital markets. Your line is open.
Oh, Hey, guys. Thanks for taking my questions all off for my congrats as as well Yeah I wanted to ask what I'll call for one again, you know it it certainly strikes us as a good opportunity not only in your enterprise could could also sort of the the the mid size opportunity of the market, but but I guess it, particularly the enterprise's what really interests me and it was great to hear you call. It the pharmaceutical.
<unk> <unk>.
<unk> when you when you think about this platform <unk> I was wondering if you can give us more color on how it's price P. A bundle all a cart.
And what sort of Roy just a customer like like the pharmaceutical companies see when they standardize on one.
Yeah. So mad I appreciate it uhm, we're really excited about cloud pier, one and I think it it is an emerging area for us. So when we published a few weeks ago, what was effectively the schematic for what we think of as the enterprises in the future. It it it really resonated with the market <unk>.
And a number of people you know reached out to it but it was it was conversations with customers that got US. There. We had we had traditionally thought of kind of popular for teams and a lot of our other infrastructure products as being separate but in retrospect, it's kind of one of those forehead slapping moments, where you realize that you know these.
These things go together like Graham captors, and and Hershey's can't Hershey's chocolate and the marshmallow together creates with them you're credible thing, which is better than the some of its parts. It's you know at this more in and that got this incredible opportunity for us to build something which really resonates with customers right now we.
We price the various components of clouds blur, one individually, but one of the things that we think we're investigating is whether we can take what is effectively and architecture and turn it into a skew and in that case. What we're investigating is there is there a way that we can bundle together a number of cloth colors products and sell them on.
Just a per seat basis, and we think that that's really attractive on both ends of the market on one in the low end of the market that allows us to get more of our features into start ups early stage companies and really have them have the best possible architecture from early in their history for larger company is what we're seeing is that there's an.
Opportunity for us both to help them rationalize a number of different vendors and then hopefully also allow us to grow with him and so I think it's it's a space to continue to watch I don't think we know exactly how that's gonna come together, but we do think that it is a a real opportunity to simplify the deployment of our.
Customers and help them have a very significant roy with their deployment.
That's great makes a lotta sense, and then sort of the other big the big product and it's been a couple of times, but but when we think about worker workers that you know.
How do you think about the size of that market I know, it's a it's a tough question, but you know what let me think about alternatives. There you know when it comes to the speed of the clubs for network. It is quite unique yeah. How do you think about just ultimately I know, it's small today, but but but what is what is the monetization what does the tam opportunity that a longer term.
You know, we've really resisted <unk> when we when we when we put together anytime forecasts or anything else. We've resisted we were just to kind of calling how what that is because I think it's tough to say I you know and this is you know maybe this is a little bit heretical, but.
You know I I actually think that if the only advantage of workers is it's a little bit faster that the terms actually not that big and in a while I understand that there's a lot of excitement around edge computing and Gardner well, we'll try it a really large number if you actually talk to developers their priority is you know.
Making something a little bit faster is sort of the last in the in their sort of hierarchy of needs, whereas they have other things around either of us more affordability and and and reliability that the opportunity that I think is the biggest one which I mentioned and that prepared remarks is really around.
How can we help companies with what is an increasingly regulatory compliance situation. So if you imagine in the future that you know what what you know the the the folks at Tech talk to our living through what what Facebook has increasingly facing in Europe that that comes to every business.
That is operating on a global basis, where the data for their customers is required to be kept in market and process and market.
Then there really isn't another platform on the market that can provide that solution without cobbling together, a bunch of things and if if in the future you got 100 different laws in 100 different countries. Then you need a network. This fans 100 different countries and I think that that's the real opportunity for workers. It's early there, but when we look at our.
Largest most sophisticated customers, that's where they're saying this is a real opportunity. This is where we want you to invest and that's why our team is investing in that area.
Super exciting thanks, guys.
Your next question comes on key twice with Morgan Stanley. Your line is open.
Excellent. Thank you guys for taking the question and really nice corner, you guys really blew it out of out of the water in this quarter I kind of want to ask about that E. E. E talked about really good conversion on the free teams customers, but that didn't add a lot to revenues because they can.
Inverted pretty late in the quarter. So two questions on that if it wasn't the like the teams conversion driving all the upset can help set with what it was in like anything you can point to and what what drove that upside and then part too what are those teams contracts looked like when when you are converting 75 per cent of huge conversion rate and.
These guys signing on for for a longer term contract or is it just a small part of their their their business today and expected to grow over time.
Yeah keto, so let me take those in order so from the upside perspective.
<unk> because of the nature of our business. We're we're a subscription business the seeds of a lot of it got planted early in the quarter and and late in the last quarter and we just had a very very strong growth across all of our our various components of our business I will say that as we tried to emphasize and if it's paired remarks the large customer.
<unk> those customers that are over $100000 and also those customers that are over a million dollars. We're seeing more adoption from those customers. We're also seeing that we're we're getting more expansion from those large customers and sometimes that expansion is actually coming so fast that it's happening within the year and so it isn't yet reflect.
<unk> and our dollar basement retention number so I think that you know as I said, we hit on all <unk> on all cylinders here Uhm I'm really proud of the team I think they did it did an incredible job delivering the the quarter that we had and and and it really was a team effort and I don't think it with any one thing, but it was a it was a common.
Nation of many different factors working out very well on the team side, you know I think that those those are typically annual contracts uhm. We are in some cases signing longer term contracts, but they are typically annual contract. We think that since it a newer product I was having a little bit of flexibility to revisit pricing is <unk>.
<unk> sense and and it gives give customers flexibility as well and then it's a it's a real it it depends on various organization. So some organizations are having very broad adoption across their their entire team someone like a delivery hero that that was H that with a substantial uhm.
A substantial adoption across their their entire platform others are small businesses, where they might adopt across the entire platform, but there aren't all that many seats, but because we've made the product. So easy to use we we can service that into the market and we really don't have any competition at that part of the market and then we sometimes the individual teams, but what we've learned.
Is that oftentimes when somebody adopt teams within an individual team set that then spreads in an organization very well and so we we think that actually the team's product has a very is a real tailwind for our dollar based on a deli basement retention and then that's it gives a very natural expansion.
Motion over time for US, which is which is we think it is really exciting.
Excellent that's super helpful. Thank you guys.
You know our next question comes from James Breen was William Blair. Your line is open.
Great. Thanks for taking my question Uhm, just with respect and the new sales and some of the new customers any particular products. It you shouldn't be leading the pack in terms of the initial sale and then you know of the customers you no problem is there take right in terms of the the problem to offer and I guess, just lastly geographically.
A real focus U S international et cetera. Thanks.
Sure. So I can start with those and then and then Thomas can can add add a little bit more color. So you know I I think our goal is to continuously be releasing new products. So that the take right on any given customer even if they had adopted everything that we had yesterday is.
We'll have new stuff for them Tomorrow, and I think if you're if you're not following our blog already just the rate of innovation. The right of the team has been able to continue to adapt and and deliver product is really outstanding and we're seeing that that that is one of the many components that is driving our continued ability to.
To to grow and scale <unk>, it really different it's really different on and on different customers in terms of what to take right for the products are but we do naturally fee products that fit together fairly well to the teams products fit very well with our <unk> and our web application firewall product, we're seeing a lot of interest over there.
The last two quarters in our magic transit product that tends to be a great again tip of the spear product for us to come in with but when somebody's entire network is behind that that then allows us to approach them and talk about teams and some of the other other products as well so the journey into clouds Blair can can come in many different.
Direction, but but we're really happy with our again, our ability to continue to innovate continue to add to the platform and and see the adoption of these these new products five by our existing customers.
You're from from and you'll receive your perspective or a particular strong corporate in North America from a revenue production perspective, strong and bullets, North America, and Europe up 58% year over year Uhm strung across all vertical smell vertical really that stood oh, okay very.
Using performance across industrial helps chair and I got the vegetables.
Great. Thank you.
Your next question comes home Gray Pallor, let's see T. I G. Your line is open.
Okay, great. Thank you very much for work I'm in and congratulations on the corner.
So it's I know you guys had a few questions on teams and access and maybe I'll just throw in one more how should we think about the typical uplift to an enterprise customers a R. R. When they go all in on counselor access.
Sure. So uhm access is is is price on a per seat basis and there are various tiers of of of that pricing and so <unk> that the dimensions will be you know how many how many employees do they have on their on their organization and then what tier of that service are they are.
They adopting and so that could be you know as low as a as a few dollars proceed it could be as high as as tens of dollars per see uhm and it depends on exactly what their what their deployment is but we are now seeing you know you six plus figure deals that are that are just in the cloud for teams.
<unk> just for clouds their team and again, it's if that we we didn't get has a natural expansion on to direction. Both when customers grow and then also when we we convinced those customers to adopt a higher tier of a higher per seats here.
Got it Okay, and then I know you just close the numbers earlier this year, but did you have any like updated stats on the total number of customers that had a free version of teams before two three and then I know you said, 75% converted in the corner. So I'm just trying to figure out the the wrong number of quarters that <unk> customers that actually converted and then.
Can you give us any sense as to like how big those customers are they skew more small mid or or or large enterprise.
Yeah. So it was it was a couple of thousand customers took us up on the three teams offer <unk> I don't I don't just to be 100 per cent clear. We have also extended a free offer for small organizations in small team, which <unk>, which we plan to continue indefinitely and we think that that's a really.
Great Gateway to get startups in an early and smaller organization onto onto the platform. So uhm I think you were asking about the free offer that we that we made back in March uhm, but there, but there is this other free offer that will continue to extend uhm over the long term in terms of the people that took us up on the free offer it really was across the board you know we mentioned a handful.
What a relatively large organization that that are are part of it. There were there were much larger organizations as well that came in through that that funnel uhm I I would say the majority of that is that the majority would would reflect what is sort of a typical distribution of sizes up companies. So we would have you know a lot of <unk>.
Small businesses that are that are in that mix, but but then a handful of fortune 500, and very large customers as well.
Got it that that's helpful. Thank you very much.
Marianna can we take questions from one last analysts please.
Secondly, you. Our last question comes from the line of <unk> with Evercore. Your line is Elton.
Perfect well I'm glad I was able to squeeze them I guess two from you first one I know we've talked about cloud for want a fair amount, but I was wondering if you could perhaps address the top two front. One you know the <unk> excuse for enterprise R. S. M. B and you know do they both like it for the same reasons of different reasons and then secondly.
Yeah.
<unk>.
Instances, where you're winning where you're getting deployed what exactly are you, replacing on what other entity that you're replacing an infrastructure there.
Sure. So I I think that's actually somewhat opposite how we went to market with with a lot of other colors. Other products, we're actually seeing four o'clock blur one in the products that make up clubs are one more interest in the larger enterprise segment first and then we're trying to pull that down.
Two two small businesses, we don't see really any competition in the self serve it pay as you go segment and so we think that that's an area that we can that we can really you know help define what the standard is and and that that will be a fertile ground, but if we look at the people that are the organization that.
Are adopting classify one if you look at the leaves that were generated from from that interest in it. It really has been the the <unk> the much larger and of the of the customer sat bolt in terms of new logos coming to as well as the people that we have.
That we have been able to approach and upsell on on as existing customers in terms of who we replaced.
I think that that.
Fundamentally the the the Zero Trust network architecture is they just different way of doing networking in the past the way that you would construct a corporate network as you would.
Build a castle build a moat around that castle and you put all your secret inside the castle you'd make all your employees come to work in the Castle and then and then anyone that was they had to you know live outside of the castle Wood wood crossover a drawbridge those drawbridge as our VPN. The moat is is a firewall you know that.
The next generation firewall types of of companies intrusion detection companies data lost protection companies typically they with the folks that sold boxes that that defined that moat or allowed access to those those drawbridge is to get across it uhm as as people are adopting a zero.
Trust model, they need a different approach to it and so what we see often if people well maybe I'll leave some of that in place. So that they will migrate more and more application to this new approach and over time that the budget dollars that that that that is that new approaches coming from.
Comes from those budget dollars that you would otherwise be buying that VPN that firewall that next generation firewall. The intrusion detection system. The data lost Uhm prevention system with one that's that's that's really the team fees with one we extend also making sure that we have sort of a web application firewall component and a D.
Dos mitigation component as well and so that could either be boxes that people buy or in some cases it could it be services provided by either the telecoms or or other other other companies that are sort of point cloud solution does that does that answer your question.
Nope that is really helpful and thank you very much I have to say I appreciate the change of pace with some great hold music outside of the call. So thanks for that.
Well that was that was a really talented musician got named Jonah Cutty and he was accompanied by B B Stockwell, Joan is Joan as a freshman at the Berklee College of music I met him in part because he's a proud cloudware shareholder and we're excited to have.
Him as a as a as a shareholder and we've we've always really admired shopify they've been a great customer of ours for for a long time based on this with Canadian bands and so it was it was great to convince the the the conference call folks to to allow us to do it so thanks for asking about it.
There are no further questions at this time I will now turn the call back over to the present terrace.
Thanks, everyone in again I really wanted to thank the cloud per team. It's been I I I really top last couple of weeks as we've been on pins and needles, making sure that the the U S election went as smoothly as possible I'm proud I'd have played a small part in in in in ensuring that that was the case and I'm really proud of our entire.
Team for making that happen. So thank you and we'll see you back to your next quarter.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
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