Q4 2020 Nuance Communications Inc Earnings Call

[music] good day and welcome to the Nuance communications.

Fourth quarter earnings call.

Participants will be in listen only mode should you need assistance. Please signal covered specialists workers from the start keep all the.

After todays presentation, there will be an opportunity to ask questions to ask the question. You May Press Star then one on your touched on for him to withdraw. Your question. Please press Star then two please note the spend is being recorded.

During the conference average like the word head of Investor Relations. Please go ahead.

Good afternoon, and welcome to our Q for 2020 call I hope everyone is healthy and remaining safe during these times.

Joining me today to discuss our Q4 and fiscal year 20 results, our Chief Executive Officer, Mark Benjamin and the Chief Financial Officer, Dan Tempesta.

Additionally, during the Q on a portion of the call we will be joined by Chief revenue Officer dropped on.

Before we begin I would like.

Like to remind everyone on our discussion includes predictions estimates expectations and other forward looking statements. These statements are subject to risks and uncertainties that could cause material differences in our actual results.

Please refer to our recent SEC filings for a discussion of these risks.

All of references the income statement results are non-GAAP unless otherwise stated.

As noted in our press release, we have issued prepared remarks in advance of this call which are available on our IR website.

That material is intended to supplement our comments on this call today and with that I'll turn the call over the Mark.

Thanks, Mike and good afternoon, everyone and thank you all for joining us.

I'd like to start by saying that our thoughts continue to be with those who have been affected by COVID-19, and we want to express our deepest gratitude to all of the front line workers.

Secondly, the all of the doctors nurses and clinical staff for working tirelessly on the front line keep our community sales.

As you know, it's been an unprecedented year and I'm extremely proud of how we finished at 20.

Q for Mark you had another quarter of solid execution against our strategic initiatives and the strong and to our fiscal year.

We delivered revenue in the P. S. At the high end of our guidance range expectations of $353 million.18, respectively.

In health care, we over delivered on our cloud based they are surpassing our August guidance range ending the year of 386 million right on the met all of our original pre call the guidance.

We generated strong year over year growth on Dragon Medical line as we continue to move our installed base of the cloud and more importantly, expand our addressable markets to ambulatory settings in the U.S. and internationally.

We remain encouraged by the strength of the radiology business as we make progress on our transition from on premise to cloud for building on our platform approach selling add on offerings on top of tower ascribe one.

Additionally, we continue to see exciting traction in our selling motion of our dragon and the inexperienced for docs offering landing several promising logos and announcing an integration with Microsoft teams for total out.

In the enterprise, we executed on our end I first approach seeing persistent demand for our intelligent engagement and cloud based offerings as highlighted with some exciting strategic wins in the quarter, which I'll touch on in a moment.

And finally today, we announced the planned sale of our medical transcription and the HR services business.

Perhaps the final step on our strategic transformation that began a little over 30 months ago. The CLO.

Your target on growth of our cloud solutions and strategic addressable markets.

Overall, we are very pleased with our performance during the quarter and are excited about our position as we enter half why 21 and I'd like to take this opportunity to highlight some of our Q for successes.

Looking at our health care business Q for Mark had another solid quarter for our Dragon medical one solution with year over year growth of 26% compared to Q for 19.

Encouraged by the significant progress we have made to date and transitioning our installed base of the cloud and estimate that our U.S. market penetration for D.M. out is now about 43% the.

We also continue to see positive traction in our international markets like the Overachievement in the UK and impressive logo wins, such as the family Trust in England.

Through September we had sold demo and 14 international countries with plans for continued expansion in fiscal year 21.

These factors along with the tenacity of our sales force helped us over deliver on an already impressive air our target for the year.

Moving on our core Dragon medical one solution, we are increasingly seeing hospitals standard rising on the nuance platform by adopting a broad suite of our cloud based solutions.

As an example last week, we announced the key strategic win with profit in Saint Joseph Oh, who is integrating our portfolio of cloud based solutions across its 51 hospital multi state system to accelerate their digital transformation.

Expanding their existing suite of nuance products Providence will adopt both inpatient and surgical the computer assisted physician documentation deeply verticalized offerings that easily integrate with our D.M. of platform and add layers of clinical intelligence to better support for physicians and improve the patient.

That's.

Further Providence will implement our cloud based documentation improvements on C.D., one as well as our powers cry one solution to transition the radiologist to the enhanced cloud offering.

And finally, we are also excited to announce that they have signed in the initial rollout for our attacks helping to relieve the burden of clinical documentation and physician burnout.

By integrating our broad portfolio of cloud based solutions Providence is poised to achieve new levels of efficiency accuracy quality of performance and we are pleased to help them embark on their journey of AI powered digital transformation as.

As you May recall this impressive when it's on the heels of several other large IDN wins, including S. S. M health and we couldn't be more excited about the momentum we're seeing.

In our radiology business, we continue to see success and transitioning our installed base true cloud offering the power scribe one while also expanding our market share what 10 competitive displacements in the quarter.

Our best in class power scribe on offering is also beginning to see the benefits of the platform effect similar to what we are seeing from the ammo.

This quarter, we executed on cross selling integrated solutions, such as image sharing work flow orchestration and follow up management of incidental findings all of which further enhance the capabilities of our power scribe one solution.

It's estimated that over half of recommended follow up imaging is never conducted.

The on the lost revenue opportunities. This can cause delayed on misdiagnosis, which can increase risk and liability, resulting greater risk for the patient.

Hi, tackling these critical issues are add on radiology solutions improved medical outcomes reduced medical costs and most importantly save lives.

We are excited by the success, we are saying with the radiology cloud solutions and as Dan will touch on later, we have provided additional detail on the radiology business to further accentuate that success.

Superiority of our integrated platform of health care solutions is being recognized notches through key client wins, but also externally by third party analysts.

Just yesterday, we were honored to be named by Frost and Sullivan as company of the year and global AI powered solutions, enabling patient safety and health care.

Additionally earlier this month, we were ranked as the number one solutions provider in five different categories by Black book research, including medical speech recognition and the AI technologies.

These industry recognitions demonstrate not only our understanding of the provider needs, but also our ability to execute and deliver high quality solutions to our customers.

Moving to our DAC solution, we remain encouraged by the overwhelmingly positive market reception lending numerous new clients during the quarter, including M.D. Anderson Metro of health.

Orthopedic associates of Hartford, and the aforementioned profit in Saint Joseph of Health.

On our go to market efforts are still largely focused on the adding new clients. We are seeing early progress in expanding our existing accounts and we will continue to monitor this very closely in the coming quarters.

Taxes being utilized both in hospital and via Tele health and this quarter as part of our ongoing strategic relationship with Microsoft We announced the integration of dogs in the Microsoft teams to probably scale of virtual consoles.

It's important development synthesizers physician patient conversations during virtual visits through Microsoft teams, allowing physicians to remain focused on the patient while significantly reducing clinical documentation time within the Tele health model and it's designed for safety and the speed.

Hospitals on physicians are beginning to experience the wide range of benefits. The Doc Springs from improved patient experience, an improved physician satisfaction to decrease burn out and valuable time savings, which can be used the increased patient volume.

Given the breadth of of lenses, which are hospitals can view on measured taxes ROI next week, we will be publishing on white paper on our IR web sites of better illustrate the value proposition of docs.

The paper provides feedback from the x. users across a variety of specialties, including primary care urology.

Desired tree and cardiology as the.

You'll see reflected in the paper unless the nine months of being generally available the actions already leaving a lasting impression.

Some of the key takeaways include.

Average wait time for primary care patients cut in half.

90% of patient respondents at one practice felt that the visit was more like a personable conversation physician burnout decrease from a rate of 72% to less than 20% at one academic medical center.

Daily patient throughput increased 24% for one cardiologist.

Overall, we are very excited about what is to come with tax and to that end have included tax on our fiscal year 20 on guidance and updated on mid term outlook.

Further we have provided additional color on taxes expected contribution to health care they are on.

Our within these periods, which Dan will cover later on.

Turning now to our enterprise business, we continued to execute on our delivery of add first capabilities for consumers agencies and enterprises.

With consumers increasingly seeking digital channels for customer service and online purchases the breath of our best in class solutions enables organizations to deploy intelligent customer engagement across all required channels once.

One sector, where this trend has become front and center is retail where we've had several impressive wins during the quarter, including each of them and best buy.

However, it's not just retail companies, who are making these types of the omni channel shifts another.

Another strategic win for us on the quarter was with the UK government through her Majesty's revenue and customs or H M. R. C, which is a non minute stereo department of the UK government responsible for the collection of taxes among the various other functions.

By adopting our broad based portfolio of solutions HMRC has enabled its constituents to leverage digital on voice channels, while utilizing our secure authentication to improve the ease of doing business.

Additionally, their adoption of our mix platform insurers rapid development and deployment, making for a seamless integrated platform from end to end.

As you can imagine these wins were all highly competitive ones, where the strength and breadth of our solutions from security of biometrics to digital to conversational AI showed clear differentiation of nuances suite of solutions.

Along with the trend towards digital transformation businesses are increasingly seeking to reduce the agent handling time and improve customer satisfaction.

Resulting in secular tailwinds for our voice authentication solutions.

We have seen an acceleration in the adoption of our cloud technology with our gatekeeper offering with key wins in the quarter such as the D. P.

We also have seen success internationally with our first financial sector security of biometrics wins in Qatar in Nigeria.

Superiority of the security of Biometrics products is being recognized by third party analysts as well as nuance was recently recognized by Opus research as the top biometrics vendor in their intelligent authentication fraud prevention report, noting that we outpaced our competitors with over 600 million.

On voice of friends 8 billion transactions per year and $2 billion in fraud savings during the year.

Well, we certainly have a great team of experts here on nuance that make our portfolio of enterprise products best in class. We also engaged with our valued partners to enhance our products and drive innovation.

During the quarter, we announced the new integration with the Genesis multi cloud contact center architecture Genesis engage by integrating the nuance intelligent engagement AI cloud with Genesis engage organizations can deploy the virtual assistance to increase levels of customer service significantly reduce aging handling.

Time, and leverage biometrics to automatically identify customers and detect fraud.

Look forward to furthering our collaboration with Genesis and providing enterprises, the infrastructure and solutions that future proof of customer engagement investing.

Overall, our company has made excellent progress in fiscal year 20 against our three pillar strategy, which we shared with you at our Investor Day last December the.

Aggressively pursue our growth markets accelerate innovation and reallocate resources to unlock growth.

In the spirit of this third pillar today, we announced our strategic decision to sell our H. I am transcription and each of our business to Assurant health care partners or HP, and Aries technology group, establishing them as an independent company named deliver health solutions.

Our focus on on advancing conversational AI natural language understanding an ambient clinical intelligence solutions has resulted in the headwind to the organic growth of our him and the HR businesses, which provide critical support the health care organizations.

H.P., an Aries technology group, our season of the investment firms with experience in the health care and transcription service space and they will be able to provide the focused investments needed for these newly acquired businesses to further expand our market leading position domestically and globally on.

Dan will go into some of the financial implications I want to emphasize our commitment to the future success of this newly established company as both the minority owner and the strong business partner would share the strategic alliance.

With all of our accomplishments in executing against our three pillar strategy of fiscal year 20. We are most proud of what we are accomplishing in support of our employees and communities first.

First and foremost we remain committed to prioritizing the health and safety of these groups of dust maintained our work from home guidance for the vast majority of our global work force, while also making enhancements to our benefit offerings to help our employees. However, we can during these challenging times equally important we can.

The need to support our employees and set them up for sustained success.

In September 30 days before the start of our new fiscal year, we held our annual sales kickoff conference with more the 900 of our sales and customer facing employees.

During the two and a half day of virtual event, our sales reps learned about our 521 business strategies Roadmaps and the latest market intelligence. So they were already hit the ground running in 2021.

As I've said before making nuance of the best place it can be both internally from an employee experience perspective, as well as a great company to do business with remains a priority for the executive team the nuance Board and me.

As the result of our ongoing efforts I'm pleased to share that we were recently recognized with a 2020 Tech chairs award for our service and compassion to our professional local and global communities. During COVID-19, and beyond we couldn't be prouder of these great strides. We have made the we will continue to work hard to build upon the.

Access.

Overall I cannot be more pleased with the incredible strides we have taken throughout the year.

One of the both congratulate and thank our employees for their loyalty and commitment to our mission.

Nearly three years into our journey of narrowing our strategic focus and optimizing our business to be a market leader in everything we do we have reached a remarkable milestone.

With the planned sale of H. I am in the HR, making a final step in our portfolio rationalization efforts nuance is positioned to reach organic growth levels that we have not yet seen in the company's history, which is reflected in our updated mid term outlook estimates for revenue and they are.

I look forward to continuing on this path of excellence in the coming months quarters and years.

With that like the pass it off the Dan to discuss our financial performance.

Thanks, Mark and thanks, everyone for joining us today.

I want to start by reiterating Mark's acknowledgement of the hard work of our employees over the past 12 months driving.

Driving us towards the successful 2020 through these volatile times.

I am extremely proud of the resilience of our entire workforce and feel it shines through in our strong Q4 performance.

Turning to our results I will begin with the brief discussion of our Q4 and fiscal year 2020 performance as part of that discussion I will provide some detail on the changes we have made to our healthcare segment financial disclosures.

Then as Mark mentioned.

Provide additional color on the planned sale of our age I am in each of our businesses and finally I will conclude by discussing our fiscal year 21 guidance several updates to our mid term outlook.

Overall, we are pleased with our Q4 results delivering a strong close to a year with unparalleled external pressures.

We generated $1.479 billion of total revenue in fiscal year 20.

Which is at the high end of our guidance and results in an organic decline of 2% year over year due to the impact of COVID-19.

By non-GAAP earnings per share for the year were 83 cents also on landing us at the high end of our guidance range move.

Moving to our segment results, our healthcare segment revenue in Q4 declined 10% compared to Q4 in 2019, while fiscal year 2020 revenue was down 4% compared to 2019.

The full year decline was driven almost entirely by our non strategic H. I am in each of our businesses, which really heavily impacted by cogan.

The business lines, representing our strategic health care revenue were down 4% in Q4, but up 3% overall in fiscal year 2000.

This full year growth was driven by strong performance in our Dragon medical cloud business, which generated over $280 million of revenue during the year up 38% versus 2019.

Additionally, our emerging cloud businesses continued to see growing demand throughout 2020 with particular strength from our power scribe one solution.

This growth was partially offset by declines in the corresponding on premise product offerings as we progressed through the transition of our installed base to the cloud.

While many of our offerings are still on the early stages of this transition we are encouraged by the momentum of our cloud based solutions and the persistent demand for our integrated AD on intelligence as we continued to execute on our platform approach on health care.

Our ongoing transition to cloud results in a more ratable recurring business model within the healthcare segment.

In order to illustrate the shift to recurring revenue more clearly we have provided additional visibility into our healthcare segment in our prepared remarks document.

First we have broken out of our radiology business into for different revenue types.

This breakdown is similar to the visibility we provide for dragon medical allowing for further insight into the progress of our transition to cloud within the radiology segment.

Second we are now presenting an additional table in our prepared remarks document that provides further focus on the elements of our healthcare cloud revenues, which correlates to our total health care they are our metric.

We ended the year with health care are of $386 million up 29% year over year above the high end of our guidance range and we're particularly encouraged by the strong growth.

Despite the impacts of COVID-19 on our business, we were able to end the year near the midpoint of our free Kogut air our guidance range of $375 million to $400 million.

I'd like to commend Rob in the entire sales force for the unwavering commitment and drive truly an impressive on calm in the face of such adversity.

And lastly for health care segment profit in Q4 was 32.2%, resulting in full year segment profit of 32.6%.

Moving to the enterprise business revenue declined 3% in Q4, but for the full year, we were up 4% year over year, marking the fifth consecutive year of organic growth for the segment.

The growth was driven by strength from our intelligent engagement offerings in particular, our digital insecurity and biometrics offerings.

Enterprise segment profit in Q4 was 23.2% in our fiscal year 20 Enterprise segment profit was 27.7%.

As a reminder, enterprise revenue in the segment margins remained subject of fluctuation from period to period due to the timing of license activity and we always encourage investors the analyzer and enterprise segment performance on an annual basis.

Turning to the balance sheet, we ended our fiscal year with the cash and marketable securities balance of $372 million, which is above our minimum cash balance target range of $250 million to $350 million.

Our cash flow from operations in the quarter was $81 million up slightly year over year. However, our full year cash flow from operations was $268 million down year over year due to covert impacts on both revenue and billings.

We repurchased about $170 million of common stock and retired about $470 million in debt principal value during fiscal year 20, all of which took place on the first half of the year.

Overall these results combined with the strong resolved that the company exhibited throughout a very challenging an unprecedented year are a testament to the resiliency of our business and on.

Confident that we are well positioned with excellent momentum as we enter fiscal year 21.

As we continue to focus on driving organic revenue growth Mark discussed the strategic decision, we made seller h. I am in each of our business lines nuance will retain a small minority equity ownership in the newly formed company deliver health solutions, and we will continue to support our existing customers.

And uphold our commitments without service disruption.

The final step in our multi year portfolio rationalization effort positions us to fully execute on our strategic goals with the growth oriented health care portfolio and stronger operating margins the.

Better illustrate the impact we expect this transaction to have on our gross and operating margins. We have provided two charts in the prepared remarks document, which bridge the gap between our fiscal year 20 margins.

For fiscal year 21 margin guidance.

We will provide a final breakdown of these impacts once the transaction is closed.

Which we expect to occur in the second quarter of fiscal year 21.

Let's turn now to our guidance.

First I would like to note that our Q1 in fiscal year 21 guidance contemplates a run rate of the current environment with respect to covert impacts on our end markets.

Additionally, we are providing guidance on a continuing operations basis.

Due to the pending each I am in the HR sale.

I would remind you that since this transaction is not yet closed the.

The adjustment made for year over year continuous operations comparisons are subject to change.

Taking this into consideration we are providing the following guidance.

For fiscal year 21, we expect total revenue in the range of 1.3 to seven to a $1.367 billion, implying organic growth of 3% to 7% year over year the.

We expect our full year EPS in the range of 71 cents to 77 cents.

This guidance range assumes of full year diluted share count of 313 million shares, which I would remind investors is impacted by our stock price currently trading above the conversion price of our outstanding convertible notes.

Additionally, our full year cash flow from operations is expected to be in the range of 270, the $310 million in our free cash flow in the range of $215 million to $250 million.

We are also updating our target minimum cash balance range to be between 200 and $300 million, reflecting the reduce the cash requirement of our business post the sale transaction.

Turning to our segment guidance, we expect healthcare revenue for fiscal year 21 in the range of $767 million to $787 million, implying 7% to 9% growth year over year.

This growth is in spite of the loss of the non strategic government contract in our coating business. The did not renew after five years, creating a difficult compare in Q1, we.

We anticipate the the loss of this term license contract will result in a 40 million dollar headwind in fiscal year 21 the.

The majority of which will occur in the first quarter.

We expect to end the year with health care are in the range of 510, the $540 million, representing 32% to 40% growth year over year.

Both our revenue and the air our guidance for health care in fiscal year 21, contemplates the expected contributions from our Dax offering, albeit modest.

Specifically, we anticipate the Dax EMR will be between 10 and $20 million in fiscal year 21.

Additionally.

Given our go to market approach for a provider of facing clinical documentation solutions beginning in fiscal year 21, we will combine our dragon medical cloud index revenue for reporting purposes within our healthcare revenue table.

For enterprise, our revenue is expected to be in the range of $538 million to $556 million up 3% year over year at the midpoint.

As I previously mentioned our revenue guidance day reflects our visibility into our health care and enterprise markets with respect to covert impacts which is informed by our recent experience.

Additionally, we are updating portions of our mid term outlook to reflect the impacts from the planned sale of age I am in each of our businesses.

And the top line growth, we expect from decks with that in mind.

We are raising our mid term CAGR for total nuance revenue to be 6% to 11% of.

Up from our previous guide of 3% to 6%.

We still expect about 100 basis points of operating margin improvement per year in the mid term, but we now expect to achieve approximately 28% operating margin by 2023, a 100 basis point increase compared to our prior guidance of 27%.

This updated operating margin guidance also reflects our updated expectations for R&D as a percentage of revenue, which we now expect to be approximately 14% in the mid term compared to our previous guidance of 13%.

Moving further into our health care segment, we are raising our mid term guidance to reflect our incrementally positive outlook on the business.

We expect our total healthcare revenue CAGR to be 8% to 14%.

Compared to our prior guidance of three to five per cent for total health care.

The eight to 10 per cent for strategic health care.

And finally, we expect our health care EHR aren't tigger to be between 30 and 40%.

Which compares to our previously guided air our growth of 20% to 25%.

This health care EHR CAGR of assumes that Jack's contribute between $100 million to $250 million or there are by the end of fiscal year 2003.

Additional color on our guidance can be found in our prepared remarks document available on our investor website.

Before opening the call to questions I would like to let you know that we will be attending the Guggenheim digital health of virtual summit on December 8th and ninth.

And the Barclays Global Technology Media and Telecommunications conference on December 10th book.

Both of these conferences, we'll be held virtually and we hope to see you there.

With that I would like to turn the call back over to the operator to take your questions.

Thank you and at this time, we will now begin the question and answer session to ask the question you May Press Star then one on your Touchtone phone if.

If you're using the speakerphone. Please pick up your handset for pressing the keys to withdraw your question. Please press Star then two net this time, we will pause momentarily to assemble the roster.

The first question today will come from the Saket Kalia with Barclays. Please go ahead.

Okay, Great Hey, Thanks for taking my questions here, guys and congrats on the divestiture.

Thanks, Saket good to hear from you.

Absolutely Mark Hey, maybe for you a lot a lot to the to go through but maybe we'll start with the start off with the the point that Dan just ended with which is the updated mid term outlook of.

And specifically the the the 30% to 40% CAGR in a are.

Obviously, some some big aspirations there as part of that for for Dax can you just dig into anything that you're looking at that gives you confidence there whether its pipeline, whether it's competition, whether its pricing or volume anything the.

Because obviously from from 10 to 20 million in air are this year to triple digit millions I think by the end of 23, that's quite a ramp any anything that you can talk to the that gives you confidence around that ramp.

Sure sure well, we were obviously happy the to reflect the some of the air are with the X. I think you know that's been a highly anticipated number at least disclosure from the team and you know we feel now is the perfect time, where you've grown a lot of confidence with the solution first.

Carter's second I'd say you know at the technology level, we're really pleased with the performance of the core Tech and continues to evolve as we had planned in in some cases exceed our expectations on the performance side. So I mean that goes without saying, that's obviously super critical.

On the the market reception continues to be overwhelmingly positive.

You know Rob Rob is with US he can touch on some of the sales motion.

But the the interest is undeniable. We continue to have you know a a day <unk> not of demand issue at all as far as I'm getting familiar with the solution. So you know.

We feel very good there got the specialty level as well second with some of the early specialties that hit the market you remember a few of those or so he NTT docomo and just to name. A couple you know were really starting to see the take rate and the performance of this.

And you know you know being quite impressive and I think more importantly drive of the right ROI for our customers and we're seeing a combination of different drivers of ROI.

And in fact, we're going to publish this white paper next week. The highlight some of those drivers of value because depending on our customer depending on the buyer profile and in some cases, depending on the specialty saket, we're seeing different drivers of value for the solution, which is which is great.

So you know, we're really excited about coming into this year with that many specialties.

And the customers that are in the early stages in the starter packs and are beginning to really get some I think volume through the system. So the expansion opportunity of existing customers that you know we mentioned a few on tonight's call out of the provenance winds of a great great partnership for us.

MD Anderson.

So those new opportunities on the existing ones, we mentioned in the past.

We're starting to see the expansion discussions began with with our with our customer teams and our sales teams. So we just feel very good about our position.

Really on on really all of the important aspect. So yeah, Rob Scott a big targeting you know he he's the right guy on with the right team for for the opportunity. So Rob you of anything there I think you said I think you said it well mark up on I think another thing to add is just when you think about why the why the of confidence.

You know it comes straight from the users you know you know you see the unsolicited you know overjoyed responses to the users. We know that this is something real and good and with that as the the foundation for whatever we do next you know I think that's that's really kind of that's the.

The heat that's the fuel of why we feel so good about where we are and what we're just making progress every day on the interest is for.

<unk> sustain the growing and a you know it's a we're just finding ways to make it the most comfortable for the users to do it sooner and a and more so we feel really good.

That's great that's Super helpful. Dan for my follow up for you and maybe a little bit more near term you know I think the other big piece of news here is that the the divestiture of the him transcription and he HR services business or of businesses can.

Can you just thinking the more of the detail on on the divestiture in terms of what proceeds if any are there or here what would your plan be for those proceeds from a capital allocation perspective, and and from a margin for effective. Obviously you know these deals are on nicely margin accretive, but as that margin guide here for 20.

On one burdened by any stranded costs just the if you have a partial year of the you know.

Of the you know of the businesses of as part of the whole does that make sense.

Sure sure the the good question second thanks.

Inc. First on the proceeds at this time, we're not disclosing that but but I do want to reiterate the strategic nature of what we're doing here. So first and foremost by doing this transaction you can just see where really unlocking the growth rate in the health care Division I mean, this you're guiding you know a seven to nine per.

The growth rate in the past always was a big burden on that growth rate and that is now behind us.

Second you know this is a really important transaction for us and our customers who are very focused on a smooth transition and making sure. We don't have any service disruptions.

And then lastly, you know from our perspective. This is an important partnership so were maintaining that minority ownership in the new business.

And we'll really be there. The you know the show our commitment and help them along the way as well or on your stranded cost question. Yes, we do have stranded costs, we've gotten pretty good at this with the auto and with the imaging transactions Ah.

Those numbers are baked into the to the operating margin range that we provided and even with the stranded cost for it will obviously take some of those costs. So you can see that it is still about 100 basis points of accretive to the business.

Very helpful guys I'll get back in queue. Thank you.

Thanks Saket.

Your next question will come from Daniel Ives with Wedbush. Please go ahead.

Yes, thanks and.

That's again.

So maybe.

Maybe Rob the you could hit on the as well.

When you talk about the Dax can you talk about.

The good of market strategy and just.

How you're sort of going through with customers is it a different type of the sales process, maybe just given the you know some examples of without naming the customers in terms of.

How do you think this all sort of plays out in terms of go from baby steps. The obviously much bigger deals.

Yeah. Thanks, Dan it's Rob So the you know the sales from a couple of things I'll say the set the foundation, we have an amazing of footprint already and health care and we have a great trust with our customers and so starting there is a really good spot and that takes a long time the build up so we think that actually.

The two.

Begin with the have a conversation like we're having around the x. puts us in a really good spot.

Competitively speaking from there you know I think the discussion is based on kind of the first introduction to it. So we've done the team has done a really good job the sales and marketing teams.

Keeping this front and center because as you as you well know we launch of this the really right into the teeth of the first days of the the first wave of the pandemic and so.

Keeping in front and center in a meaningful way during a difficult time was something that was you know I.

I think masterfully executed by the marketing team.

Sure. The we had the ability to have digital demonstrations or the ability to do it in of enemy of getting a meaningful way not just seeing of video but have live demos.

For both live demos and interest continued to grow where the volume wouldn't allow for everyone to get their own remote live demo at any given moment. We started the group demos and so I think keeping in front of the prospects and customers in a in a meaningful way has been a big an important part of it you know.

Samples or yeah, we might have a of.

The C suite of a particular institution, that's very interested for participate in one demo.

And then get a sense of why they want to have it and then they send their their team below them into the next version of the demo and so and we have you know so much available bandwidth as it relates to doing these things digitally that now we're able to have all of these groups come through the various times have the discussions get of fuel for it.

And then as we go to market and start to make the sales you know, it's a constant process, where they're familiarizing themselves with it.

And then you know word of mouth takes over and so you know we think we've been really well positioned the strength of the solution really is the key for it but then being able to do this all digitally and having been nimble enough to do it I think I think we're in a good position here.

Okay, Great and then maybe add on that for for Mark and Dan.

So in terms of probably permanent bassam profile perspective, I mean, what's the best way to think about moving the 612 months for from a go to market perspective is interest it's continued blocking and tackling on the on the on the the typical health care, but on the actions from the other initiatives is there just a sense where you could you.

The sees more and more assets and more and more resources toward some of these initiatives, especially now selling off him than others, you could really should teach the queen focus on the core.

Well I mean, I think we're doing just that.

I think a you know even with our our midterm Guy. We added you know another point on the R&D investment side of things Dan So.

You know I think.

And the listen you've been with us for longer than the last three months and so you you better front for a seed so in many ways.

We feel you know on burden and really can go after all of the priority index.

Yes, the men's and the strategies that we've outlined so you know Dax is obviously, an exciting one for us or the international expansion of the health care business is exciting for us the radiology expansion and cloud conversion is super exciting for us the enterprise the mix platform.

On the Super exciting security of biometrics. So there's really you know it reminds me a little bit as I'm answering your question about you know ultimately why we did the the spin out of the auto business is that.

You know you had of you know competing priorities for investment and you of course know what's happening with the auto and their percentage of R&D is as a percentage of revenues and you know we're seeing I think that you know performance be quite nicely as well. So I think I think what we're we're practicing is really a bit of the.

The same playbook and.

We feel very good about entering this year across all the the growth categories, you know not favoring one over another but all of them feeling that the appropriate investment levels.

And you know are you know Joe Pietro our CTO, Rob daughter, our head of sales they know that the support from Dan in for me is you know if you can succeed and you can accelerate we're going to we're going to pile in more and go faster with you. So I think it continues just to.

Be a very clear conversation within nuance today.

Awesome. Thanks.

The next question will come from Jeff Van Rhee with Craig Hallum. Please go ahead.

Great. Thanks, guys I'll add my congratulations I want to dig a little deeper on the on the Dax as well can you talk in a little more detail in terms of you know what's the scale of your largest customer there. The how many customers said the are you having discussions with some of your larger medical systems. What are they telling you I mean I realize the obviously goes.

Of the stabbing the great track record of being very conservative for the numbers in the yard the are playing in a pretty steep ramp was dax, but do you have the large medical systems that are giving you some glimpse into how many seats the envision they could do on tax over the next three to five years, just little more precision on on kind of the those those maybe three data points.

Yeah, I'll make a few comments, Jeff and then you know, perhaps Rob will add some additional color.

Yeah 'cause he's on the front line every day, but we certainly are having conversations with you know the nation's largest systems, including the academic systems as well as you know you know rural systems, you know in the mid and ambulatory space and surgical center spaces.

Well so.

You know we have we haven't necessarily I'd say index the certain the way that it would be noteworthy I think we're seeing you know good interest in good traction.

You know the all of the buyers of Dax you know with this pilot.

The opportunity in the starter kits that we discussed all have the ambition of going you know broadly across more than 10 or 20, you know conditions in in any given site and that's certainly not their goal and the obviously you know we have great ambition that you know this will ultimately change the way the.

Net physician's practice medicine in patients experience clinical care so.

So those conversations continue to be I think certainly on a very I think the ambitious an expansive level and we're certainly having them across all levels and sizes now.

Yeah. The white paper, we will publish I think we'll give you Jeff a little bit more of the color context of as far as what does this mean to of physician what does this mean to a practice what does this mean to a department.

And one of the White paper, we'll talk about individual cases and true life examples.

You'll start to see that.

Oh, a cardiologist can improve you know patient throughput by 25% or you'll start to see a primary care physician can reduce waste of time by 50 per cent for for his or her patients like theres. The ROI you know of this of the solution is growing in.

Very different and exciting ways and quite honestly, we're learning too. So it really is its educational but also I think you know very confirmatory.

The route and then of.

Of course, you know more on all of the comments the only additional color on that.

As he described a lot of how we look at these conversations early on although we have the start of facts of.

For the smaller groups.

If anything they're definitely thinking of how they work the synta there.

Total population and that actually as positive is that at some kind of slows a little bit because they're trying to swallow it all at once and we that's why we developed our starter packs and it's definitely exciting to hear them think that way. We don't have the lead them that way they start there and we almost the reverse or reverse engineer for back to you know the initial patient so.

We are very excited though.

Yeah, I think I think of the prepared remarks, you alluded to some some of it seemed like you had maybe a couple of specific instances in mind of early customers, having come back for follow on orders there and the expansion there.

Certainly yeah, we we've had numerous of the or of the customers start to expand the numbers again, yeah, and Jeff you've done a lot of good work in the channel. So you understand that we're really changing.

The work flow in the process of practicing medicine for these positions. So you know we're very sensitive to that so were weren't just as comfortable starting with 10 or 20 dogs and moving across the department with an idea on are moving to a second facility or third site.

Well, we're also learnings of is that.

The early users of the solution are becoming the internal.

Obviously on the unpaid course supporters of the solution within their systems I mean, we have examples where raveled revenue there the best they become the best sales people, we have a they some of these developed their own decks. Some of these folks have their own the but felt their own on realized and they and they.

Go on their own selling spring so.

You know, it's very beneficial and it's totally grassroots.

Yes, yes very helpful. You from certainly whats dragging on I think also now emerging on power scrap of one you are becoming much more of a platform sales as opposed to of widget sale and I think you alluded to a little bit of what you're seeing in the power scribe one for.

On where you've got customers coming back for incremental capability set of ARPU uplift can you just talk to and layout any any sort of quantify any of the kind of where you are on a per seat where that can go over time as you start layering in I think you mentioned work flow on image management, a bunch of all the things.

Yeah, I mean, it's a little early for us to to really talk too much about the uptake I mean, it's early days is really of the point on Power's fried one Jeff you know were probably you know it you know certainly were in the first inning of that you know on Prem to cloud upgrade and then once you get that.

Going you start to layer of the the.

Follow imagine the other solutions on top of the the power ascribe one solution. So you know it's early days, but there is a lot of attraction and yeah listen. We're we think there's a you know two two and a half backs on the on Prem to the cloud on P. S. One. So you know we think there is.

A lot more to run as well with the add on solutions you know in that category, but I don't I don't know Dan if if we have a much more color than that yeah, we're not giving that type of ARPU just yet I think it's exactly what mark said, we need to get a little bit of further into this similar to what we did with Dragon medical.

You know the ARPU really started to shine and then all of the add ons on top of.

But I do think you know for for you know based modeling purposes.

We are absolutely seeing that two to two and half times on the of an s. So that's still that's still holds.

Okay. That's helpful I'll jump in here.

Yeah, Jeff One final thing is that you know you saw on our prepared remarks, we're going to disclose more of the the detail within the category is not just in radiology, but give you a cloud category for the for the group that would include the solution. So you you'll be able to start to get a feel for what the growth rates.

Oh will ultimately mean.

Very helpful. Thanks, again, guys appreciate it.

And our next question will come from Sanjit Singh with Morgan Stanley. Please go ahead.

Thank you for taking the questions I guess I should start off by thanking you for the on early Christmas presents lot of for a lot of great new of pockets of prices in today's release with the midterm outlook and the sale of the on each our businesses for that's because the maybe.

Maybe start off the sort of looking at from next fiscal year.

Look at what the headwinds he sort of like the budget that you guys got to the midpoint of your original Yara Guy on sort of pre coated and I wonder if you could sort of.

Lay out what some of the for templates word that we saw what it was for the kids that will allow true got the medical one of the war or power stride.

Well for instance, you didn't counter because of because of it and then once we imagine the world hopefully wherewithal vaccinated.

What type of Tailwinds can be at least.

In the sort of a shorter way of saying it how much of the pent up demand is there do you think for the core portfolio as we look to maybe close to that environment.

[noise] Hanjin its Dan ill, let me start and then maybe mark can add some color at the end of I'll kind of address what we saw in in the.

2020 for some of those headwinds and then how that evolved.

I think as you recall back in the March April May timeframe.

You know this is the the health care systems really struggled and the impact it impacted them in a couple ways with with all the volume of common that they were seeing number one it really slowed their decision making down in the deferred a lot of decisions that they were making around a certain purchases. So.

At that time, we paused on some of our guidance, we really pulled back on the share our guidance because we just didn't know exactly how they were going to purchase some of the professional services items got deferred and then of course, Oh, we did see some licensing slowdown lastly in that H.I. of any HR.

Business that actually took the brunt of course of of the impact because that's the heavy transaction on P.S. parts of the business. So that really hit us I would say in Q3, what happened in Q4 is that the hospital systems figured out how to deal with the Cove at a little bit better and then they turned on some of those decisions.

So the volume activity came back because elective of started to ramp up again at the end of the year, we saw pretty much of the volume is back to art. The norms. So that's a good thing but more importantly.

Rob sales force was really able to make great progress in selling the M.O. power scribe line.

In starts the start those good conversations index. So that's kind of what happened in 2020, I'll turn it over the Mark to address the right. So you know I think as Dan mentioned I think you know the the whole system ultimately had to learn how to fulfill.

Facilitate co of it care of of course, while the ultimately returning back to normal operations not just for revenue.

Pressures within health care systems, but.

A lot of these elective procedures can only be pushed out for so long.

So as Dan mentioned, we you know our guidance today Sajid you know essentially has what we're experiencing today and what we've experienced for the last several months now.

You know.

You know with the pressures of co of it you know robs team continues to learn out of out from operate and and drive sales from the business and they've proven that so we feel good about that certainly if there's a sudden you know change to market conditions relative to co of it.

You know there could be an impact on you know as you know the speed of bookings, if you will and timing as well as you know we could see something you know in the on the top line pressure for the year of of call. It 100 basis points, perhaps 200 basis points, but nothing we're seeing today and again, we you know.

So we have eyes on in a nearly 600000 physicians every day and the volume as we measure every day and the images coming out of our radiology business that we see every day. So like volume wise, we're seeing a system that we serve that's the learn how to operate and manage.

In the code environment, we can't guarantee that.

Holds but at the same time, we know what we know today and what we've seen historically.

That's great color I really appreciate the the thoughtful response, the sort of looking at what's the next year on the sort of getting back [laughter] Dax you know in some of our conversations with your customers and also on investors.

This is the view that of the first 50 hospital for.

20, the IDN networks right what are going to be a lot tougher than the following <unk> hundred or 150, and so what do you think we are sort of establishing goes kind of lighthouse accounts and that'll drive those customer references that will make the the on customer acquisition just go back much faster.

For into calendar 22 to 20 can be on on how.

How many more of those kind of like the kind of do you think you need to get before you start to really unlock some of that customer velocity around docs.

Yeah. This is this is rob.

Fair point, and I I really hope I really hope it works out way the way you just described it the a as we as we think about that first tranche.

You know we're still we're still early even in that but you know we have as you've seen from some of our press releases. We have some we have some names we have some some really good beginnings of that foundation that you described and when you think about the dynamics of what we talked about just the little bit early on the on the earlier questions or comments you know as the.

Physicians begin to use this and realize what it's going to do to change their their lives I think thats when it gets on the least fully and you really were.

Well most of the code of kind of of co seller in that you know go forward motion. So yeah. I think you know I think we're still early but very promising.

I appreciate the response from thank you.

Thanks engine.

The next question will come from Stephanie Davis with SPP as the <unk> Leerink. Please go ahead.

Thank you for taking my question guys and congrats on all the day quite a long time to time.

Thanks.

Hi of a broader overview of question for Mark on that as I see my follow up on our continuing the trend here.

The March taking the step back on kind of looking at the long ago the of the portfolio rationalization process.

The anything stick out as a percentage of area, where you'd like to invest more or maybe you'd like to pare back a day now the everything's on Blake.

Yes, I mean, I think it's a great question Stephanie and.

Yeah, I think the as.

As you say the road has been a long and I'm not sure why Andy but it's been you know so to get to this point.

I think we I think for feeling really good about the level on the investment we have going on in the company and you know him and the the first part of the the road Weve been on was you know a large effort to take cost out of the company that.

We'd directly reinvested back into nuance to drive I think many of the things we're talking about today that are just starting to the but its just starting to.

I think great gain traction whether its international of whether its bags, whether its mix of whether it's our security on biometric solution the gatekeeper on the cloud.

So I you know I think we you know the hard work that all of our employees in the company really has had for.

The this this you know this process.

I would say that you know of I asked you know who could use more investment you know obviously you know some may say I'll take more but I think we feel very good about the levels and you know and again you know Stephanie you noted you know the team at this point I think if we see success happening.

You know even above the expectations. We have you know and we feel good about what our expectations are.

No there's nothing holding us back from going faster in that regard and but we don't feel of that you know now is the time to you the margin picture on not just for the year you know not just the shift of the portfolio mix that improves operating margin is a couple of hundred basis points and in the mid term.

From operating margins that you know get up to that kind of 28% range. I mean, you know you layer that on top of the growth rate of the company that you know you know mid term you know, we're calling for a 6% to 11% top line growth or where the health care of business growing at eight of 14%.

That feels really good to us given the investment profile of the company today.

Yeah really good and this is your price right.

[laughter], yes, so we're happy.

No on the air.

Our side I had two quick ones. The first is if we can come from your prior comment does that mean, you're not baking in the uptake on the right.

As hot band for baskets Cobot, it's more of a busy for the usual for 2021 and the second is just about the puts and takes out of that due to the lower on the high.

Right the on the mid term.

Yeah, I mean listen Rob you know in the face of co of it in the face of obviously a system that by the way the the systems Werent financially. We're never you know I think a great shining as an example of you know excess capital doing the vast right. So you know and you know the.

The health care space, you know as well as anyone. So you know you have to walk into a system today with a very high value proposition that shows a return on their on their dollar you know one of your favorite GAAP.

Right you know any of course, the credibility of course, you need you know trust. The of course, you need a compelling solution. So yeah, we're super experienced with that.

And and we know net that none of the solutions and.

If they don't come with that they're not going to to to do well so.

You know I think Rob proves he could get too they are number and that's why 20, you know essentially at the midpoint of the original year Guide, which is you know incredible of.

So obviously, we're accelerating this year two of 32% to 40% share our guide.

Obviously, we get some contribution of Dax, but by the way you know that's not driving the difference. It's part of the difference see you're seeing underlying underlying strength in the core business that we've been talking about outside of tax.

And then listen on the mid term you know, it's it's a journey for US and you know it's the air our range is a wide dollar range, but certainly the exciting growth and nothing we see today and nothing we've experienced today, you know would lead us to think otherwise.

Hey for helpful. That's the Dan guys.

Thanks, Stephanie.

The next question will come from each of who leave with Oppenheimer. Please go ahead. Thank you. Thank you for taking my question and congrats on the solid finish for 20 and another strategic divestiture of the band two type of sense on.

Just one.

Quick question on me. This has got to the I guess pipeline check heading into their AD. You know as you know based on strong broken the international side. This quarter, what's wonder if I could pick your brain like a debt or Bob on.

Into like the different <unk> GAAP regions, where the B U S. On a pack the emerging markets like what are you seeing any type of like a secondary locked out of it seemed that you up on maybe.

Maybe a docker one credit in America, what are you seeing on the ground and that's it for me thanks guys.

Yes. The this is Rob I'll take of running that you know, it's certainly it's a factor it's out there it's a part of the conversation.

Especially the you know as we think about where we are with health care internationally, there definitely they've they've announced the they lock down on some of the main countries we operate in in Europe.

To date, though you know, we've we've been able to maintain our conversations or maintain our progress on.

Sales of flight and so.

We have not had a you know a complete stands so it's actually as the team as mentioned earlier the the systems of seemed to learn how to operate.

In in the environment and the now does that mean that day or kind of gang busters flush with cash ready to go explore all the things so we pick and choose where we are and make sure that we're in the right places that are the have the capacity to have these discussions.

But today you know we feel like we still have very meaningful conversations and if we're if we are impacted at all it will just be more a matter of timing of rather than a change of the discussion itself. So yeah. We feel like we're on a good spot so globally there.

Okay. Thanks for the color about the connection.

Thanks.

And our next question will come from Tom Roderick with Stifel. Please go ahead.

The gentlemen, thank you for taking my questions appreciate the great to hear from the Uh Huh.

Rob This question might be sort of best suited to you, but I'll, let and any of you guys handle it I'd love to hear what you're seeing on the ground on the pricing side of the X. I know, it's early and you probably don't want to reveal on a on a CPC basis, but it is sort of meant to be the multiples of a a subscription license of Dragon medical cloud so.

You know maybe you can talk about that a little bit and in the context of that you know how are your early customers piloting traveling using this in conjunction with a with manual scribes on on assistance basis that that would be really helpful to the to understand thank you.

Yeah. So this is rob and thanks for for pointing that question of me the team loves the when I get all the cash. So the you know overall you know the pricing has been holding it and it is as you mentioned multiple you know we've tried to be really thoughtful about how we present this in terms of its value and that's.

Why we believe it's holding because it truly represents the value relative.

To what it will help the physician the systems. The patients. If you think about all the different types of ROI you could associate with DAC. So so far of price price is holding you know overall, though I think you know how it compares depends always say how it compares describes input it has a value either way there are no scribes.

And as the certainly as the Euro dollar for dollar match against scribes. It's in a very short position. It if that was a pure mechanics of the of the ROI. So but again there are multiple factors. That's you know it's not just the comparison describes it so we feel like we're really showing position because not every system at ascribes none of it for.

Position, even if they do in the system has and you know we don't want to be kind of a one trick pony there and so we think we're really strong of position.

Excellent that's really helpful. And then you know mark as the.

Separate side of the business, you're kind of shifting over to enterprise so great to see the you're projecting organic growth here in the coming year on that front I know you've gotten questions from many people myself included sort of wondering just how the strategic that business remains the long term vision of the company and it seems like you're really leaning into that out, particularly as you see the projected another year of on.

Again, the growth so to the extent that that I'm sort of correct in reading that properly how much can you sort of leverage the the technology across the way from the accident and be listening capabilities on the enterprise side, how strategic is that how tough is that the re purpose on the enterprise side.

Yeah, So hey, Tom No I mean listen we're really happy with the enterprise business and you know.

You you've been around this for quite some time and you know Weve continued to you know I think take the right investment on you know looks into that business and they had a great year, you know just coming out of 2020 so.

You know it was a big year as far as product launches with mix. So that's really a do it yourself conversation only I platform for for enterprise grade Midmarket. So.

That's a bit of what that team would decide is something that you know really changes of the game and change of the conversation for them.

We made investments in addition to that around our security and biometrics portfolio. That's now cloud based on.

Getting some nice traction nice wins so.

The business is is it has a very large voice component to it but we're also seeing in the markets that conversation lay on my end voice really matter and you know while digital transformation, you know, which were obviously you know a major part of.

Having the the voice capabilities is really really I think what rounds out the solution. So.

We do feel good about I think you're reading this right.

And you know, we're calling for 2% to 5% guide a win with the business this year.

You know, it's a nice healthy business you know the digital portions of the intelligent engagement portion of that include some of the non voice aspects in our growing quite nicely and and we'll continue to leverage the their their platform and their solutions across on health care and we do that.

Already today and write back of the other way. So I'd say, we have you know a very a good.

Good working you know combination of solutions working with both divisions.

Excellent really helpful commentary I'll jump back in the queue. Thank you Mark.

Tom Thanks.

And our final question today will come from Vic room, because of the <unk> with Guggenheim Securities. Please go ahead.

Yes. Thank you for taking the question I just had one follow up for US here on the health care Air on guidance for this year of five tend to buy 40, and then you called on by 10 to 20 of that coming from Dax, but any more color in terms of the mix of that between demo and some of these emerging products across the cars pipeline and the other cloud on it.

[noise] or even from a debt it's Dan here, Yes, I think you have it right. It is the 10 to 20 coming from that they are and then it really is going to be a mix coming from the other categories of course, you'll start to see.

That radiology products, starting to churn as we start to convert that base. Its you know 2020 was early days for starting and get a little bit more traction in 21 were pretty excited about that.

The the the behavior of of the drag in line will be you know obviously, you've made a really good dent in the U.S., but there's still U.S. conversions to take place.

We're going after that international market, we're going after the community hospital market. So they'll be contribution there and then of course this takes longer but we're also seeing.

Benefits from the C.A.P.D. that sits on the computer assisted.

The mutation and they add it sits on top of that platform, but of course that won't grow at the same levels.

We're getting the benefits from the the radiology side and now from the see the one that CVI of business line. So its really a lot of things contributing and because of that we're not going to break down the components any longer and then of course as Doc starts to ramp up that'll that'll make up a larger portion of it as well.

Okay, Great and then maybe just the follow up in terms of the the debt target. The EBITDA for 2023 of the 100 to 250 million just any color in terms of the underlying assumptions there with respect to how pricing is going to trend here over the next few years versus the number of physician I think any color there would be helpful. It's the kind of think about the past the achieving those targets. Thanks.

Yeah, I mean, we took a number of different I think filters the that and how we really model that and and you know we looked at our land and expand the strategies and the adoption curves that were experiencing.

With some of you know our early customers and how they're ramping.

You know we took on you know look at all of the value propositions that you know are driving the buying behaviors.

We looked at the number of specialties as well and.

Specialties value not just you know on a value basis as far as you know patient throughput, but you know really what the clinician is you know has to serve it around you know documentation and clinical documentation needs. So there are a number there's a host of different factors that really have gone into that and you know.

Ultimately you know, we we came out with what we knew we had you know starting you know relative towards robbs pipeline relative to the take rate.

And ultimately what we're seeing on price, obviously as as one of the inputs.

And as Rob mentioned, the you know, we're feeling very good about all of the inputs including price.

I'm now obviously, we have you know a lot of execution of go you know make happen and you know we feel very good you know on all ends of the market that are experiencing the x. today and the specialties that.

That are ramping and you know certainly over that period of time the solution of valves too. So you know you'll hear a start to talk about the expansion of the solution and the capabilities of the feature functionality that will drive the even stronger value propositions to the sales. So you know.

It's a big range too I, just you know to be clear. So we feel you know we want to put it out there I think you know the team here quite well you know we like the momentum we have heading here into the 21.

Great. Thank you.

And this will conclude or the question and answer session I'd like to turn the conference back over to Mark Benjamin for any closing remarks.

I just wanted to thank everyone for joining an obvious I wish everyone. A happy holiday next week here in the U.S. and obviously, a a safe on as well so thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.

[noise].

[noise] [noise].

[music].