Q3 2020 Vocera Communications Inc Earnings Call
Okay and Mike go ahead.
[music].
Good afternoon, ladies and gentlemen, and welcome to the Vocera Communications Conference call. My name is Mariama and I'll be your coordinator for today.
At this time all participants are in a listen only mode. After the speakers remarks, there will be a question and answer session.
You ask a question during the session you will need to press star one on your telephone if he would like to withdraw your question. Please press the pound key.
Please try to limit yourself to one question at that time I would now like to turn the presentation over to your host for today's call do Dooley as Altera Investor Relations. Please proceed.
Hello, everyone welcome to Voceras conference call to discuss our third quarter fiscal 2020 earnings joining me today are Voceras, CEO, Brent Lang and Justin Spencer our CFO.
Earlier. This afternoon, we distributed a press release detailing our quarterly results. The release is posted on our website at investors that Vocera Dot Com and is also available from normal news sources.
This conference call is being webcast live on IR page of our web site, where a replay will be archived.
Before we begin our prepared remarks I'd like to take this opportunity to remind you that during the course of this call. We will make forward looking statements regarding projected operating results and anticipated market opportunities.
This forward looking information is subject to risks and uncertainties described in Voceras filings with the SEC and actual results or events may differ materially except as required by law, we undertake no obligation to update or revise these forward looking statements.
On this call, we'll refer to both GAAP and non-GAAP financial measures a reconciliation of GAAP to non-GAAP financial measure is provided in our posted earnings release.
And with that I'd like to turn the call over to Brent.
Thanks.
Hello, everyone.
Could you do not include non human our laws.
And determination when tested.
Once again, the roads and Gary.
I'm so proud of the job that our teams are doing well, it's being focused on serving our customers and supporting each other.
Q3 was certainly no jone quarter for the world.
[laughter] cosan organizations have been shining through in our connection to our mission has never been stronger.
The harvest from the quarter include the achievement of several company Records income.
You record bookings revenue profitability and are combined balance for backlog and deferred revenue.
Let me jump right into some of the details.
We delivered excellent performance of our business.
Revenues for the quarter were roughly $54 million, representing both year over year growth exceeding expectations in this challenging environment.
Software revenue would turn to be the fastest growing part of our business.
We also delivered standard profitability numbers, demonstrating the leverage in our operating model.
Q3 bookings through the highest level of any quarter in the company's history.
And by an acceleration of our outstanding momentum in federal government hospitals, and several large health system expansions.
Our backlog and deferred revenue balance rose again, this quarter and reached a new record for the company.
The hands free capability on communication devices remains a key differentiator for us in the market.
We had another strong quarter of growth in shipments of smart patch.
We completed the successful acquisition of the teams racing company well.
While maintaining very healthy balance sheet for future M&A.
Eases, a SaaS based offerings that expands our total available market for it.
Dose and attractive cross sell opportunity for us.
Finally, we undertook several key industry facing initiatives this quarter aimed at advancing how hospitals prioritize our solution.
Talk in more detail about that in a moment, but let me summarize by saying I believe her sizing for that opportunity and leadership position have been enhanced by our response to the events this year.
Despite the ongoing tend to have a difficult delivery environments and budgetary challenges facing our hospital customers.
Our teams have adapted well.
Engagement with prospects is high and our pipeline is strong.
Our teams have risen to the challenge and are filling in this new normal.
Let me get a moment to describe some of the booking highlights from the quarter.
Our Q3 bookings performance was simply outstanding.
This quarter large deal was away with hospitals looking to standardize processes.
Enabling hospital bicommunal without having to issue an RFP.
International is an opportune is a large opportunity and a top priority for us and we are pleased to have a growing overseas pipeline.
I was also pleased with the growth of our software bookings coming from both new customers I mentioned earlier as well as healthy cross sell into our installed base.
As an example, we won a large competitive displacements and University hospitals in Cleveland, Ohio for our engage integration software, adding to our existing deployments.
Our services organization also had a very busy quarter with the loosening up of restrictions on visiting hospitals, they were able to ramp back up in person customer engagements.
We had several really important go lives, which enabled us to deliver on our large software backlog and Justin will expand on that in a moment.
Here are a few other highlights from the professional services this quarter.
We are now live at six mordant facilities as we progress towards a system wide deployment.
In order to goal is workflow standardization across multiple sites aimed at improving patient satisfaction and utilizing analytics and workflow optimization.
We're also lies at homes three hospitals, each with an impressive 12 clinical integrations.
These state of the art facilities are relying on Vocera as best practice, among leading hospitals.
In addition, northwestern is up and running at their Geneva, and central to page facility, leveraging our solution as they bring together specialists from disparate locations.
We completed some important international deployments, including a hospital wide pager placements in Dublin, Ireland and in Japan. We are now locked live at the VA camp Donna.
Our business is becoming virtualized, replacing some pre pandemic strategist strategies with cold inspired travel mitigation remote services sales conversations and online tools. These.
These tools are rapidly becoming effective new normals that we're incorporating into our operations and we compete to win and look for some of our customers.
Finally, I'm pleased to say that we seamlessly integrated eve acquisition into Vocera during Q3.
These enables healthcare providers to send updates regarding patient status to their family members and loved ones easily and securely to secure transmission a text voice messages photos and videos.
We've already had a few wins since the deal closed, including the Nicky you see San Francisco, and we're working diligently to introduce ease to our customers and prospects.
I'm thrilled to have this new capability and expanding market opportunity as part of our portfolio.
Turning to some broader market commentary Q3 was a busy quarter of meaningful interactions with our customers and prospects that provided us with valuable insights into the market.
We learned about the challenges facing hospitals today, and how that translates into expectations for their future spending priorities.
We will we are working to build on our deep mindshare and influence the priority liquids the industry needs our solutions.
I'd like to take a moment to describe these interactions.
We have also held our first virtual user conference call due to the Thera affinity network.
We achieved great participation representing meaningful customer insights that will drive future innovation as we continue to lead in our markets.
We received feedback that we are viewed as a trusted partner.
We will be able to lead our customers towards their goal of enabling real time health system.
Additionally, we ramped up our lobbying efforts to highlight the importance of safety and preparedness and core values among healthcare leadership, ensuring our place and fee recognized thought leader.
Our guidance for the future, we believe they're likely to focus more investment dollars on this important topic.
Customers and prospects are embracing the idea the communications technology is an essential part of personal protective equipment for PE.
Nurses and other front line workers simply can't do their jobs unless they have the ability to communicate with their team.
Being able to do so hands free under VP is invaluable and we are learning. This is not just the code requirements at hospitals and expect to continue to use of PPD, even after the pandemic.
In addition, as hospitals stride to resume elective surgeries to recapture lost revenue.
Operational throughput becomes a critical elements of restoring financial viability through.
Throughput and improving hospital operations from core parts of our value proposition.
Regarding the leak solution, we can improve quality satisfaction safety and operational efficiency, we call. This quarter, we blame for some time now and this mission is more relevant today than ever.
Hospital tell us all the time that they are looking to consolidate the number of vendors, they're working with and we want to build platforms that are unified fully integrated and build for the future.
Demand for a partner of choice in clinical communications is on the rise.
During the pandemic, we've been able to immediately deliver search licenses and urgent bad shipments to meet their changing needs.
We were able to address their workflow challenges within our with an eye towards ROI.
Our call will approach our focus on customer experience and our ability to innovate with a mix of internal developments and careful M&A make us the leader in our space and the perfect partner of choice.
Wrapping up my comments I fundamentally believe that this pandemic crisis is elevating the priority of communication and workforce solutions to be a strategic imperative of lasting imports.
We are well positioned to capitalize on this opportunity with the most complete clinical communications and workflow solution on the market.
Now I'd like to turn the call over to Justin for a discussion of our financials Justin.
Thanks, Brad Hello, everyone.
We had a very strong quarter and our financial results demonstrated a significant leverage in our operating model.
In what continues to be a challenging market environment overall total revenue at $53.8 million up 6% from last year.
Importantly, our substantial bookings growth enabled us to meaningfully increase our combined backlog and deferred revenue, which.
Which I will comment on in more detail in just a moment.
Product revenue, which includes both devices and software with $28.5 million.
The highlight here with our software revenue growth.
As we had as we have mentioned previously several new customer deployments and our record level of software backlog and trends Gbpthree.
Enabled us to increase software revenue, 21% to $11.5 million.
Additionally, our strong bookings enabled us to achieve another record level of software backlog.
Device revenue was down this quarter due primarily to timing.
Revenue in this category is up 10% year to date, and we have a very healthy device backlog that we expect to ship over the next several quarters.
Our bad and continue to be a key differentiator for us in the market or hands free communication is more important than ever.
In our services revenue, we have changed the name of one of the revenue sub categories.
Moving forward maintenance and support revenue will be call subscription and support revenue.
As it will now include our recurring subscription revenue streams, such as humans. In addition to software maintenance and extended warranty.
This way investors will be able to see all recurring revenue that we provided the service in one place.
Overall services revenue was up 14% to $25.3 million driven mainly by a healthy increase in the subscription and support revenue category.
Subscription and support revenue was up 16% in Q3 as a result of our growing customer base, a high maintenance renewal rate and a small amount of subscript subscription revenue from these.
We see ourselves of the software enabled business with a strong and growing recurring revenue base.
Our software and subscription and support revenue streams combined with nearly 60% of our total revenue this quarter positively impacting our gross margin and profitability.
The other part of our services revenue is professional services, which was up again this quarter, reaching $4.9 million we.
We quickly responded to meet a higher demand for deployment, many of which were virtual and we had a healthy slate of projects scheduled for Q4.
Now before I transition to our profitability I'd like to comment on backlog and deferred revenue another.
Another big highlight of the quarter.
Our combined backlog and deferred revenue increased 23% to a record $151.1 million during.
Driven by our strong bookings and overall execution.
As is typical for us many of the new deals we added to our backlog in Q3 will likely be deployed over the next few quarters.
Most of that federal deals we closed in Q3 will contribute to our 2021 revenue.
Based on the current deployment schedule.
Regardless of any uncertainty than headwinds that might arise in the near term.
Fogging deferred revenue provides a solid foundation of future revenue.
Now on to profitability another bright spot our.
Our adjusted EBITDA in Q3 was a record $13.5 million up 41% from last year.
Our adjusted EBITDA margin was 25% of revenue exceeding our target annual financial model goal of 20%.
Year to date, our adjusted EBITDA of $17.2 million up substantially over last year.
We also generated GAAP net income of $4.2 million in the quarter also up meaningfully.
These results reflect the significant a significant profit expansion potential inherent to our business as we grow revenue.
And drive our software related business even higher.
Here's some more color on our non-GAAP gross margin and operating expenses.
Non-GAAP gross margin in Q3 was 70% up here.
Nearly four percentage points versus last year.
Both product and services margins increased from Q3 last year, reflecting the revenue growth and higher mix contribution of our software related revenue stream.
We also have a continued focus on delivering our product and services more efficiently and.
Including lowering the cost of our barges moving more of our professional services work to virtual and a variety of other cost savings initiatives.
Non-GAAP operating expenses of $25.4 million were up a modest 2% compared to last year as we focused our hiring on the most critical positions in the near term and proactively managed our expenses.
Most of our workforce continues to work from home following local government guidelines, which resulted in significantly lower travel expenses in the quarter.
We believe travel expenses will remain will remain low again in Q4.
To cap off my Q3 commentary our cash balance ended at approximately $211 million.
Excluding the cash used for the Eve acquisition, we added nearly $2 million of cash during the quarter and our operating cash flow in Q3 with $2.6 million.
Our balance sheet continues to provide a strong foundation for our business, especially at a time like Devon.
With both ample liquidity to weather near term market uncertainty and capital to fuel our longer term growth.
We're very happy with the results we've been able to deliver so far this year and we are now laser focused on closing out the year strong. So that we can carry this momentum into 2021.
Our Q3 results reflect a number of really positive developments from the investments we've made over the last several quarters and our technology go to market and service delivery capabilities.
As we head into the fall and winter season, we are closely monitoring the 10 nanometer and its effect on the world and in particular our customers.
Many of our hospital customers paid significant financial and operating operational pressures. So we continue to maintain a cautious posture for now.
Fortunately, we saw signs of improvement in our market during Q3.
We are hopeful that this will continue.
We remain fully committed to help our customers during this crisis.
Our recurring revenue and loyal customer base, along with a solid sales pipeline in healthy backlog and deferred revenue provide a strong foundation for growth.
I'll now turn it back to Graham.
Thanks, Justin.
Before we take your questions I want to say again, how proud I am of our teams great performance this quarter and so far this year.
Thanks go onto our employees, who remain focused and dedicated as we adapt to the changing times and pursue our mission to deliver the quadruple play.
Our business is performing well and our solutions are in high demand.
Our products are better suited to today's environment than ever before and I am inspired by the abilities and commitment of our team.
Very grateful that we have we're the lead business with a strong cash balance and a powerful selling engines and robust demand for our unique solutions.
As we entered Q4 and look to close out a strong year theres still pandemic related challenges to face.
But we see great opportunity before us for technology solutions, and our sales and service capabilities have never been better aligned with the market.
With that I will conclude our formal remarks. Thank you for listening today, operator, we're ready to open up the line for questions. Thank you very much.
Thank you as a reminder to ask a question you'll need to press star one on your telephone.
Sure with Shire question press, the pound or hash key please try to limit yourself to one question. Please stand by while we compile M&A roster.
Yes.
Your first question comes from Matthew Gillmor with Baird. Your line is open.
Hey, Thanks for the question.
Just I wanted to follow up on that from the bookings commentary it sounds like it was the strength, it's pretty broad based.
For the for the core year EPS Hospital market.
How much would you say.
The booking strength was attributed to the maturation of the sales forces and can you talk about how thats progressed versus other factors that may be related to cover that.
I think it was a really important factor match.
As you know over the last two years will be has been going through a process of retooling our sales force to be much more tuned towards enterprise cc levels, selling and we brought in a number of new people into the sales force with.
For real good strong track record of the enterprise selling and John complex solution selling into the C suite and I think it's a movement towards these larger deals has really accentuated that transition we are largely through the vet transition will be completed earlier this year and most of those newer folks a pound.
Six to nine months to ramp up.
In terms of learning the product and learning our market and they are now representing 20 of our top performers. If you look at stack ranking of our salespeople in a lot of those the newer folks are right, Gary or near the top of the list. So I'm really happy with the transition to the top in there and the deal size continues to increase as I mentioned this.
Quarter was really low.
Bye bye large deals.
More of these enterprise level deals and that was both in our commercial market as well as in the federal market. We saw a number of large deals as well.
Great. Thanks very much.
Your next question comes from Sean Wieland with Piper Sandler Your line is open.
Hi, Thanks, so much and congrats on the impressive quarter here.
So it looks like the initial guidance that was pool is entirely doable just wanted to get your thoughts on why.
Why not reinstating that and that any incremental proxy can offer that would be helpful. Thanks.
Hi, Sean Yes, we're really pleased with the performance of that business so far.
When we Sutton suspended guidance, we indicated that it would be for the for the remainder of the year and we feel that thats. The right thing to do for our business, we never going into.
Late fall and winter period, where we're starting to see spikes in so there is some uncertainty out there in terms of how hospitals are going to be affected by that.
We do have.
Stronger level of backlog and deferred revenue now thats them down the record level, but the majority of that is going to convert to revenue in 2021, so once the new year churn than we.
Our them formally looking at 2021, we'll revisit that but for the time game.
We're really focused on closing out the year strong and carrying a lot of momentum into 2021.
The cash squeeze a follow up then on that if.
The strength of the backlog and deferred revenue is there any composition of that that is different from a timing perspective, as we expect that to transfer to revenue or should that be.
Because of the COVID-19 pandemic or should that transition Dave.
Our long historical patterns.
Yes, overall, we expect the revenue to convert and as for our goal levels.
The pandemic has proven to show that sometimes that can disrupt painting. So it really depends on kind of what happens in the broader market with hospitals, but.
All those are firm orders and we currently don't anticipate anything different other than on more and more normal cadence and many of the federal orders that we closed in the third quarter are going to convert to revenue and EPS by 21 and that will be.
The normal normal for us based on recent years.
All right. Thank you very much.
Your next question comes from Vikram cassava with Guggenheim Guggenheim Securities. Your line is open.
Purchasing environment is trending so far in the fourth quarter and you think about the momentum that you had in Threeq, you and the conversations that you're having so far just how you're thinking about your ability to close deals towards the end of the year relative to what you might typically expect thanks.
I'd say, it's pretty much status quo, we haven't really seen any difference.
Although the momentum that it started building in our business in Q2 and Q3.
Really changed obviously it we've got a lot of uncertainty between now and end of year as we head into the winter period of time, but I think the sales team is feeling good about the pipeline.
The large deal pipeline continues to grow and there's a number of deals that they're working on that.
Their ability to access customers has improved over the course in summer and at least for now is remain positive in our professional services teams ability to reach out and engage with customers has remained.
Pretty positive, but I think there is there is uncertainty as we head into the last couple of months of the year.
But so far so good.
Okay, Great and then maybe just a quick follow up on the software revenue line up 20% year over years, obviously, an improvement over the past few quarters can you just help us understand the sustainability of that performance going forward and when you think about the composition of your backlog and the upcoming projects just how we should be thinking about the progress on that line going forward. Thanks.
So in general our software is.
It.
It has been and we think we will continue to be the fastest growing part of our business, where we're fortunate to now have many of the.
The orders that we closed in Q3, particularly the new new customers added.
More to our software backlog. So we started the quarter with a record level of software backlog and we continue.
Continue at a record level seen in the finest where we will be converted to revenue and added to that so our overall software.
Backlog deck is that a really solid level.
That will likely convert over the next several quarters and enabled our software growth to continue.
And with all that said it can be lumpy from time to time soon there may be periods, where there is less growth than in other quarters, but in general.
No bad news.
Driving a significant portion of our growth over the long term.
Great. Thank you.
Your next question comes from Sean Dodge with RBC capital markets. Your line is open.
Thanks, guys and congratulations on the quarter I guess, maybe just just fallen ended suggesting that you're just talking about the record software backlog.
Can you give us a little bit of insight into what's driving that is there been shifted to use cases clients are buying for that necessitated a little bit more software here post pandemic or.
It is it commodity expansion is our aggregate cross selling more into kind of the legacy Badger device space.
I guess any any insight there.
Yes. So there is theres a few drivers there I pay is broad based and we have existing customers that are purchasing more of our software and they expand to new departments in new facilities and as they do that they need more software and values.
To support their user base and we're also having a lot of success selling NVH cross selling that product. We're really pleased with the momentum that has continued to build without particular product.
Our customers are Don are driving a greater level of clinical work flow and connecting Belterra too.
Many more systems and then the third piece.
And whenever we have strong.
Strong periods of customer growth.
Many of the newer customers are buying the software for the very first time and that caused a drop the impact on on the pace of more software bookings and then down the road that conversion about to revenue.
Very good thank you.
Your next question comes from Ryan Daniels with William Blair. Your line is open.
Yes. Thank you for taking the question and congrats on the strong performance. This quarter you had some commentary during the prepared comments I thought was interesting talking about how clients are even more than ever turning towards fully a fully integrated platforms I'm curious number one.
If that indicates also larger deals on average given what we're buying more of the product at one for probably deploying that more on an enterprise wide versus departmental basis, and then number two are there any caps is fee in the current portfolio that you need data develop internally or potentially tack on the tuck in.
To meet the full complement of of the platform with all looking for thanks.
Thanks, Ryan So with regard to the first question you're absolutely right. We are seeing larger enterprise deals there.
Our choosing to rollout solutions across the entire enterprise and they're also choosing to buy all the various components upfronts, which would be not just the voice communication and secure texting since the alerting alarming the engage portion of adjusted talked about earlier for the clinical integration. So it's truly being used has.
Clinical communications and collaboration suite, if you will.
And as they look to standardize on a fewer number of vendors and innovative kind of make the decision more at the C suite and they deployed uniformly across the whole system.
So thats driving up the size of the deals as initial deals are becoming larger and larger on the front end with regarding the second part of the question.
We're not seeing a lot of gaps in our product portfolio right now.
I don't think there is deals that were leaving because we don't have a particular feature or particular piece of functionality.
When we look at both our internal organic development as well as our M&A pipeline is primarily focused on leukemia Tam expansion opportunities maybe connecting to adjacent markets.
Most of the work we've been doing is along those lines and we don't feel like we've got a major gasoline is closing the existing product portfolio.
Great that makes a lot of sense and then if I follow up a little bit different you may have mentioned this I apologize when you're talking about the cost going forward, but do you feel that the implementation teams flash technology.
Is up to the task of implementing the record bookings and deferred backlog, meaning to enable higher there or really expand anything on the IP front or can you kind of.
That sounds further investments going forward. Thanks.
Yes, Brian we do we feel really good about our our service and delivery capability and we've invested in.
Part of our business.
As we become more even more efficient and.
The big movement for Us it's been moving more.
The deliverable to more of a virtual model that inherently just create more efficiency and.
And so we've seen.
Using our margins go up in that part of our business as a result of that as meaning that we continue to kind of scale. The revenue in that part of our business. We don't necessarily have to have as much cost as historically, we might have needed to do that I will we will add resources to support our customers we are women.
But we feel like the existing team and the capability. They have this is more than capable of.
Continue to deliver these high quality implementations at our customer sites.
Great. Thank you and hope you all raw mats.
Again, it is star one on your telephone keypad to ask your question. Your next question comes from Dave Windley with Jefferies. Your line is open.
Good evening, Thanks for taking my question Brent.
Brent you over several quarters Youve talked about how.
You had been going through this transition as was discussed a little bit ago going through this transition to more larger in the enterprise wide type deals that that we're taking somewhat longer to close and then koby kind of interrupted in the middle of that and you are responding very quickly to surge capacity as we sit here today or to search capacity needs I guess.
I should say as we sit here today as it has it kind of fully cycled back to the kind of the two water temperature that you were in in the end of last year in January of this year or or what's the what's the kind of put and take in terms of sales cycle.
So again the business is moving back towards more of a traditional cadence.
Of larger deals that are going through the sales process, but.
I do believe that cool it has created a sense of urgency for even those larger deals.
As customers recognize the significance of the value that we can deliver for them.
So it's not it's not the cadence you've seen in early Q2, where it was very tactical and pointed to in just kind of trying to react very quickly to an urgent situation.
It's more the cadence of the larger more strategic deals, but its created a level of urgency on top of that as a result to cope with it maybe.
Streamlined some of the decision making process and.
Allowed us to get the deal closed successfully and you're seeing and then and then kind of related Lee.
Are you highlighted.
A bunch of large deals.
Our debate, but we're also seeing some some strong software attachment.
Is the.
Is the number of large deals being driven by Pan enterprise type.
Deals or is it more just.
The intensity of what people are buying even maybe even at the department level and the enterprise wide stuff is still an opportunity for lift in the future.
So I think it's a mix with some new customers, we're seeing more pan enterprise wide purchases weather, including engagement, including voice and messaging in the purchase of fronts.
In through the two things that.
That's a that's a shift towards this enterprise purchasing put a lot of our installed base is still using.
In a fraction of the the overall functionality and so as Justin mentioned, we had a really strong quarter of cross selling engage back into the install base both in our federal market customers as well as in the commercial market.
And I think that represents people wanting to kind of continue to expand their use of those Sarah we have significant expansions in the quarter as well got.
Got it thank you.
Your next question comes from Matt Hewitt with Craig Hallum Capital. Your line is open.
Thank you for taking the question, maybe just a follow up from a couple of questions ago, what percentage of your implementations today or this quarter.
Or virtual and maybe.
What what it wouldnt impact the impact has that had on your margins and how sustainable is that.
Thank you.
Hi, Matt each each implementation looked a little bit different but I think the way we think about it is theres.
There's deliverables the implementation of a number of deliverables, along the way from training to configuration to testing et cetera.
And so it's hard to kind of pinpoint a specific.
Percentage, but theres no question that.
The significantly greater number of the deliverables that we complete this part of the professional services engagement art are now done virtually.
Pretty much all the training is now done virtually a lot as a consideration even some of the testing in a in some instances as it pertains to some of the work flow design or more more detailed around that we are being granted access to customer sites.
But that will vary depending on on the customer.
But I'd say the majority of the work that we're currently doing it is able to be done virtually and thats a huge difference compared to.
A couple of years, we can learn a lot about the downside.
Got it thank you.
Yes.
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Second to pay variable we have had similar pick whatever can ask questions.
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Yes, yes, okay.
Well, that's an add on I guess, the I guess it looks like we're having problems with the Q and again typically fall on electric DNA right now than you are and go more than happy to continue the conversation with the night and maybe what will the analysis for.
About finished with a fair amount about timing of other fact, Brent Fannie closing remarks, and connect with the guidance later and if possible.
Okay. Yes. Thanks, everybody. Appreciate your time I Hope you are all healthy and finding in these difficult times and we look forward to connecting with you and seeing you and hopefully.
Virtually were in person over the coming months. So thanks, a lot is on.
Thank you.
This concludes today's conference call. Thank you for participating you may now disconnect.