Q3 2020 Vasta Platform Ltd Earnings Call
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Ladies and gentlemen, thank you for standing by and moving to the Bostco platform third quarter 2020 earnings Conference call.
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I would now like to hand, the conference for what your Speaker today Petro Goldman Sachs. Please go ahead Sir.
Okay. Thank you for emerge and good morning, everyone and thank you for joining <unk> conference call for the scores.
Boston platforms third quarter two range to end result.
We from beyond the current today, we have multi view foster she looks for is that you always feel free.
Net malaga losses fuel.
Who knows our general for goodness.
Moving to the presentations are indicative moving forward looking statements for group statements generally relate to future events or for Joe.
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Let me now give you the call over to Marty you can make his opening statement.
Thank you all I would like to start on slide number five where we presented the main highlights off the 2020 sales cycle, which ended on September interest.
It's it's always worth distressed debt our business cycle does not going to do with the fees go we are rooney's debt from the fourth quarter off when we are into the third quarter of the following year does when we refer to 2020 sales sorry cycle, we are talking about the cycle, we start peaking.
On the fourth COVID-19, and up to the result of this quarter.
Among the main highlights from the sales cycle. We have this should description revenue showed a strong growth above 18% even in a year as third blunt that's 2020.
Where we had to cope with the fact is off the from Dan Mckenzie migration of the old site activities to the digital world.
Another highlight told this is like is the strong adjusted EBITDA performance that degree to 41% due not only to the increase of the share of subscription revenues that that has higher margins, but also the efficiency initiatives employed by the company leading to gain in the adjusted EBITDA.
Margin of 40.4.
4.1 percentage points India.
Now I will pass the floor to our CFO, Paul just for that.
Thank you hi, everyone moving to the next slide number six asking.
As important as to observing the results of the fiscal year, which presents strong seasonality between the quarters is to look at the sales cycle as a whole.
Here, we can see all the growth that we were able to Delever, India sales cycle.
Net revenue was 16.5 per cent higher Dan one scene in 19 sales cycle.
And it is important to remember that this growth of 60.5 is the consolidated one which means the combination of 18.4% growth in the subscription revenues with a growth of 12.7 per cent he didn't non subscription revenue.
The other hand gross profit increased by 21%, while the adjusted EBITDA.
Well, it's even better without the upturn of 41% the.
The net losses in turn had the significant improvement of 64% and appeared highlighting this solid performance we had in all indicators.
Moving on to slide seven we also present the subscription revenue for 2020, but from a different perspective you.
In addition to show in the 18% growth into subscription revenue he for too on the previous slide. We also show a comparison with <unk> and low contract that we announced it for 2020.
The difference between the HPV and the subscription revenue is debt HPV Shoals, all contracts signed it which is a good indicator for the subscription revenue expected to be recognized in default looming sales cycle letif He's base it on a future perspective.
Normal the years this subscription revenue tends to behave very similarly to the announced it HCV things going for us I find it and the ATP already concede there's churn historical returns price increase cross sell up sell and new clients.
That's why it is the best proxy for subscription revenue we have into.
In 2020, we have that disruptive event like the pandemic, but even with all the pressure brought by the pandemic things back on our revenue was only 3% in relation to our initial expectations. We Dream force all the soundness and resilience of our operation.
This was only possible because we all for an extremely efficient digital platform for schools managing to reduce debt backed up the migration from classrooms classes to the digital environment and enabling the maintenance of the academic calendar notwithstanding the stability off.
Operation was so good in dispute.
That we were able to delever a subscription revenue of 692 million very close to our initial expectation.
The purpose of the slide number eight.
He's just to reinforce the message that despite the differences analysis that we have we seen the car buyers of the year, we thought recognition up results more concentrated in the for and fourth quarters. The result of recognition for in 2020 is very similar to the one in 2019.
Which leads us to believe that keeping the current perspective. There is no reason to believe in NAV curve for Didier debt will be really much different than the one we had left here plus or minus a couple of percentage points.
What we have seen until now in relation to our sales campaign for 2021 is that the result of retained it. So far is very sound with a strong base of closing new contracts, which gives us confidence that the fourth quarter. This year, we will continue with the expectation off on the other there be another very strong.
On what.
On slide nine we present the main financial highlights off this quarter and we can see debt, although the third quarter you still seasonally weak we performed better than the same period. The 19 in all lines. These.
These these clear both in the quarters, but for most Pan India accumulated nine months of the year.
Regarding the numbers themselves, we can see debt they accumulate the revenue for the nine month, reaching 654 million with a gross profit to all approximately 370 seeks an EBITDA of 138 and a net loss of 68 meter well below the net losses.
101 million in the same beautiful day it.
Now I'll return the floor to give to continue with the final with his presentation. Thank.
Thank you for all of its going to dislikes 11, we can see them for instance, or has a nice strong and engaging digital platform such as pool, which has been on a station pillar for the company to ensure the stability of its operation and growth for the following years since the beginning of the pandemic flu al has because you three more.
Then 8 million accumulated like glasses with an average of seven to 2000 classes for us meet that life per day currently poor our accounts for about 50% of low education, though wed be true ask on Brazil in price to educational platforms showing that is not the only other.
True with high levels of engagement and satisfaction, but also an extremely important to for school.
In the Saints flow Ralph has been essential for parts from the schools to be able to continue with their school activities and have seen an increasing your active for.
Let's see patient of teachers and students the platform proven previously used that as a day that could support for students gain it's a key role in the dish those school as it was called the transition of classes from I now look to for two environment and these pets. This has had an extremely positive.
The effect on contract renewals, but true has not only operated as a platform for redemption engagement, but also as an important hub to attract new schools and we could observe a true gold the commercial can thing that many students for less helpless during this year and we were.
Enable to follow this school.
And were unable to follow this is good deal with this plan at the beginning of the school year.
With with this we have been able to go for the first time to capture those schools from Highstar key competitors, which you started to see platform as a way to go to the next year without major problems, thus, ensuring the sustainability of the businesses, but the other work is not to growth.
Tricked into supporting the digital transformation in schools, we want to be more and more a food partner of the Brazilian private school. So I invite you all to move to the next is like.
We are now we are now developing a new concept for partners schools to further explore the off for of complimentary solutions enough for most similar to I tunes diseases. The Pluto store a marketplace for the sale of third party digital solutions, we usually international sort of.
In other revenue share mall do exclude exclusively for the Brazilian market.
For the digital solutions are affordable and not a line that with this new hybrid the school.
Our mortgage debt recall requires low investment ensures high return and with the free trial model. We further believe that we'll be able to capture more and more the interest of the schools provide them providing sustainable growth for this business.
Therefore, there is no doubt.
Net from now on complimentary solutions, we will gain more and more maturity index. The business cycles and this is why we are extremely into and bring even more options to our partners, but let's go to two a little deeper to see what we are the solutions that we are already visible on our.
For new platform pseudo store.
On slide 13, we presented the off for us and as I mentioned on the previous slide we have international solutions with very strong IP reputation and brands in the few dogs steam we had the three highly desired solutions, which are discovery location with a range of interactive materials income.
Total science math, and social studies, Must've ticket, which has been available on our platform since the beginning of the year with solutions margin games for early childhood education and flow to labs, which is a virtual environment that facilitates the experimentation and development of sign.
Good for use in the future authentication Olympics, we have now available our platform put.
Good I wouldn't be which encourages children to participate and improve the day performance in Education Olympics in the future financial indication, we have depending which is a super interest in platform for children financially location, enabling them to learn financial goals.
In the few of the product project methodology, we partner with with the Green Shaper, which is an online to the gods. These students to practical and motivating leoni learning experiences and problem solving.
Finally in the few dozen languages you off for the current speech and ship it to two great solutions for practice for the practice of English.
Moving to the next slide.
These two all of these solutions, we are building a digital platform that will support the transition of the Brazilian school to this new concept GAAP hybrid schools, which increasingly appreciate those skews and activities.
That is why we are making a series a few is off investments in bringing neuroscience for improved effectiveness and results of our solutions that had the band that you can see that in the image is extremely important for this because it can do the analysis of the brain in real time measuring the consent.
In addition, the level of each student and proposing a cool that's more adopted to the students' attention levels in other words, what we are proposing to day for our partners in relation to the use of technology is not just from Mer palliative to assist the schools in going through this difficult pandemic compute.
But the whole range of solutions that we will help with the migration and disruption from the analogous model, which is to very much rooted in the academic environment.
Moving to the next slides.
And for all for all this content to be deliberate and use it efficiently. It is essential that teacher student has their own is steady to.
What we saw during the pandemic, who was that most families were not prepared to face for long periods of social insulation and had in many cases to share the same computer we'd all its members.
That is why this partnership we made the with Lenovo is extremely important for these new life, we are leading to the EBITDA loss to Delever. The computers with all their current then constant already integrated with no cost of acquisition or maintain is facilitating family plan planning into the net.
Okay should.
We already have 22 more than 20000 students who have a due to the learning Bu model and we believe that such number we will only grow in the times ahead.
Moving to the Nexus lights to enter this part of the presentation I would to like to show how efficiencies. This platform will do.
We were able to be because the beauty of the platform concept is that the day after signing an additional service contract.
You have this sort of sub base available for us for sales to more than 4000 partners schools that we have on our platform to date.
And these additional services can be added to the development of a solution Viper chasing a solution or by our bipartisan as shown in the Pluto store slides.
Some cases, it's more the vantages and distressed debt.
Spain is strategic to purchase a price as we did at the beginning of the year with minded makers, our robotics and coding solutions for children.
Good day. After day contract was same third mine to make goods solution was a red available for all of our farmers and hunters to make those sales and the result achieved within just one commercial psychosis spread extraordinary.
Less than a year, we have already managing to increase the number of new contracts by 80 per se and we have more weeks to go in our commercial campaign evidencing. The success of this strategy now open the floor to Laramie Malaga ours, our COO.
Thank you.
And to the end of this presentation I would like to invite you all to see if you like.
Good day.
We have already answered for total of contracts that accounts for a new CEO of 835 million for the 2021 sales cycle, which represents a 21% growth compared to the subscription revenue reported in the Twentytwenty sales cycle.
The comparison is made in relation to the Twentytwenty HCV varies for.
What we expected for this year before the fact.
19, the number already contracted for 2021 shows a growth of 17% in other words, we already have some results regardless of the metric that is analog.
Yeah.
Moving to 21% the TCV growth 80 per cent of this growth is from traditional learning systems, and complimentary solutions and 20% from from.
But it's also important information that the commercial process only cans in late December early channel and we are confident that this figure could increase to the end of the sales campaign.
Now heading back to Gill.
Thanks, Malaga no finish other presentation and open the QNX section. Thank you very much.
Thank you.
And as a reminder, ladies and gentlemen for like to ask a question at this time. Please press star one key Touchtone telephone.
So enjoy your question please press the pound key.
He said about composite una roster.
And our first question comes from the line of for Bertaux Acero with Bank of America. Your line is now open.
Great Hi, good morning, guys. So two questions from my size from from the first one is regarding the sales cycle I wanted to understand how do you analyze the effectiveness of the more digital sales company in terms of leads conversion. Please. This is a very important change in the way the industry adds new constructs so curious to understand.
How are you think schools adapted to that end.
In that sense, given the partial reopening of schools in Brazil.
You expect the coming weeks to be relevant in terms of from new contracts for next year.
And the second question.
Regarding the accounts receivable, we saw an increase in accounts receivable year over a year in terms of amount and also days of receivables that I suspect are mostly related to renegotiations with existing schools are given cove it but how do you expect is like a net.
Next year to reflect the 2021 sales kind of thing so those other questions. Thank you very much guys. Thank you very much.
Thanks for your question and terrorism Malaga here.
We'll take the first one then I will turn to more this for for the accounts receivable.
Our sales cycle definitely was completely different from any one before vision hopefully at a very very important role.
Especially at the beginning of the cycle and the for.
First semester, 100% of all the commercial initiatives, where digital not only the approach was digital but the offering was digital we're offering a boarding on our crude oil platform to help the school. So I would say it was ER twice digital as it used.
To be a.
That was.
We have reported that the beginning index create a from a sales funnel that now we are closing new contracts in the second half of the year.
And the next coming weeks, we are working already in a hybrid mode.
Having physical integrations interactions with the schools and this is actually speeding up the closings that were already on the pipeline. So we still have ER. We are confident that the weeks ahead, we we should do perform well on the sales campaign.
And Hyatt at all with regard to their accounts receivable you are correct. Okay did increase that you realize.
Is directly related to the negotiations with the customers because of coffee. Okay. That's why in terms off for the average accounts receivable term.
Comparing to previous year, you'll see an increase of 20 days something like these okay for the net sales cycle of course with everything related to coffee going back to normal we should go back to what we had in 91 observation only.
Given the seasonality that we know regarding our business with the fourth quarter and in fourth quarter in terms of revenue is much stronger. Please don't forget debt from October to March we can see the average total in terms of receivables goes up.
And then from April to September It goes down so inadequate when you analyze in a sequential basis. We had these fluctuations okay, but nothing that is already not expected.
Great No debt that's super helpful and if I may just a follow up to two there for his question regarding the I mean, the change for us and now the larger portfolio of complementary products. Oh are you designing the go to margin strategy.
For for the next sales cycle.
I believe I suspect you probably should be more levered on cross sell but given the number of products and the ltvs for those of those products. Just just wondering how you're designing the go to market strategy for complementary exclusively. Thank you very much guys. Thank you very much growth.
Hi, Antero actually the we changed the go to market strategy. These sales campaign.
Relying a lot on the complimentary products, we have much more projects this year than we have for the previous cycle and power.
Par a significant part of our HCV growth already comes from the complimentary products that plays a very important role on the on the from the growth and then we expect the next GTM campaign will be pretty much. The same we already tailoring our GTM two for.
Those on cross sell of these projects on our base. So we have special events for that we have sales speech for that are.
We have bundles for that and it's already customize it up and running.
Hi. This is good for speaking I'd like to add to that ER with for the Prostar. Besides the pushing initiatives, we have to sell or complimentary solutions Pluto star is a way of pooling the demand from the schools right. So after I agree with.
Malaga, but are we are we are also trying to make this trial versions as a way to to the school you know to use the new service to like a new service and then pool. This new service to the school.
Excellent guys. It's super helpful. Thank you very much for thank you very much.
Thank you for our next question comes from the line of Diego, our our though.
With Goldman Sachs. Your line is now.
Yes.
Good morning, everybody. Thank you for taking my question on the first question is more like a follow up on a Paul's question.
Related to low each for the booking died down somewhat from some of its going to be some other won some uncertainties from.
Given the very tough environment for later to.
Who real control sales price. So can you people for from the upside potential that we could expect from became somewhat from the schools would get back to you, which you know.
From a final decision on the beginning of next year and also any color from needs to be growth performance for the London see some are coming what for the year on year growth in each one of those segments physical virtual but from the total HCV. Thank you.
Okay. Thank you Diego this is malaga yeah.
Yeah.
What we saw what we observed with them. This last campaign is definitely is definitely the schools where on a stand still moving regarding two for coal they were reluctant to make changes so.
So we.
Obviously this has two impacts we have lower churn because of that but we have a more difficult campaign regarding new car.
Hi, It's all schools also we do expect more to come or we have several schools on our pipeline that we have been very close to reach an agreement with them and we do expect some schools to to make the last the fusion only in January or.
Pending on their expectations about the class the physical classroom, how it works or not we still see some schools waiting to see.
This could be converted in contracts or later on on the process. So this is a completely completely new you are in terms of sales campaign, and we cannot predict much above the last mile fit although.
We have varied.
Lots of heated discussions in the pipeline.
And more disclosure about what is we've been day CV, we'll be able to give laid it on.
In the fourth quarter, yeah, adding on debt or Jay I guess, we are going to compliment the disease CV in the beginning of the next year right and we'll show the break down off a you know all the all the factors that the combined R&D disease, such as churn cross sales.
So in new contracts. We are we are planning to to give the information with for the fourth quarter release Okay.
Okay sounds good pull through and I guess my my second question is regarding your pipeline of new products. I know you mentioned a couple of plot.
The problem, that's where recent launches for an hour up from our customers, but can you comment about the May go for 2021 and the company per ton also on ER Grexit for instance for handling and thank you. Thank you.
Sure.
Yes, as well as we shown here in this is a release, we will add to have.
I robust.
Number of services and products to the beginning often the you know the next the go to market.
But we are working any acquisitions in current location and also in complimentary solutions right I can say that we are in an advanced for the steps with some of the some of the players we are planning to acquire actually we are in a due diligence process.
With a few of them.
And we believe the debt until the end of this year, we will be able to announce an acquisition in current location in a few acquisitions in complimentary solutions right in complimentary solution, especially we are planning to acquire companies that will complement our technology include so.
We need the more more technology in adaptive assessment, we need more technology in in writing skews already space right. So that's the kind of acquisition. We are we are looking for this moment.
That's very helpful. Thank you very much.
Okay.
Thank you.
And our next question comes from the line of leases per barrel.
With you vs. Your line is open.
Yes, Hi, hi, everyone. Good morning, Thanks for taking our question to true actually for almost for site bolt on non DTV.
And I'm, sorry for being repetitive.
So first I would like to understand if there's this 21% increase already accounts for the recovery of the COVID-19.
Dropouts, so to speak that the that the true true showed during 2020 and the second would be on the competitive scenario. We understand that this shift so does the new kind of go to market with a more virtual a aspect that does it or did you guys see any change when it comes for the company.
Since then so in terms of price is or do you attribute. This. This this this positive result to a a more breeder a more efficient execution from your end on the conversion of the leads okay. Thanks guys.
I believe this is malaga here.
Going to your first question the 21% those accounts.
For the drop off.
Halt last year, we do not expect the pre K. incase students remain.
Without an enrollment for two school years, So we do account for that.
On the.
21%.
Regarding your second question about the cash.
Total execution and how it changes I think we we were really.
Happy to have to have true Raul because through low leverage our losses, our sales per cell in the digital products for two true.
Digital inside sales channel that help for those a lot to breed schools to the sales force, but I wouldn't say that debt per se or close contracts what close contracts for that once for you are serving the school we are we.
We can get more closer to the school either in terms of sales, but also Pedagogically speaking and then we can for the school. So it's is still hybrid conversion in terms of contracts and I agree with you I think we have a good execution.
Because first because we have throughout all for secondly, because we have an inside sales already working digitally for the last three years. So I think this gave us some leverage or some ground speed on the very beginning.
And later on on the process the engagement and the cross sell I think made the rest and we are you waiting.
For the final results in the upcoming weeks.
Hi. This is this is Q, adding adding a little bit here I guess.
The way we are.
Bringing new services to our portfolio is also important to this school in this next day period right. We have for instance in English we have English stars, which is a premium proud to pay mean ice COO with a you know serving high end high income families, but we're also bringing.
Two our port for you more digital solutions that are more aligned with that these new hybrid moment hybrid periods to the schools and also because the target price of those products are you know while lower than the traditional product. So we are really confident that we have a low.
A boost portfolio not only because the quality of the services are super important but also because they are more digital then then war in the past and the target price is our more you know affordable for the period the families are facing here in Brazil.
Great. Thanks, Thanks for the answers guys.
Right.
Thank you.
And our last question comes from amount of Marco spinoff with Neuberger Berman non is now open.
Hey, guys. Thanks for the call thanks for that.
Just in terms of the that what you're seeing.
In terms of student enrollment kind of on a like for like basis at the schools. You know as you look to next year I'm just curious for.
For a given school.
You know have they seen I know I know, what they saw dropouts kind of at the kindergarten level.
But any comments you can give on.
On our school seen a 5% drop in the upper grades 10% nothing increase.
Just to see whats happening at the individual school level and how that's impacting you know and as to what extent that's a driver of this increase in accounts receivable.
Hi, Mark for this is because the army here.
Let me give you what we we have.
Heard from our partner schools definitely in 2020.
The the big face for the dropouts for specialty pre K and K.
For two in Q3.
They do the majority of them do expect that those enrollments will return.
We are right now on the enrollment season, so I I would say no school right now growth 100% their.
Their school that is true tenant base for next year. They are right in the middle of the process.
They normally starts late October so we're very early on the stage, but what I can share with you there sensation. There's sensation that the schools are getting back the they are calling back the schools. They are.
They are very positive for the next year. Moreover.
We had a another positive trend that we see we had several places where the public education was not.
As as bad debt.
The regular public education in Brazil, and many of the median class parents. They have their their kids on public schools, but this service on the public school during the pandemic was terrible.
Pretty much nobody could deliver any service so some of our partners.
Partners are reporting they are gaining share then from the public side from the public schools, but right now I don't have figures. It's very early on the stage, but we are seeing a positive trend here in Brazil.
Due to the expectations of our partner.
Partner schools.
Okay. Thanks, and have any I know, it's extremely early but what do you know what impact if any do you think of vaccine.
Extent that its available you know in Brazil kind of it.
In a widespread manner toward the second quarter of next year any thoughts on how that might impact your business if at all.
Marco.
Phew waiting to see.
When the vaccine actually will be widespread here in Brazil.
I'd say our scenario right now is that the schools we remain hybrid.
I would anticipate more here the expectations are for a second wave rather than.
Coffee the scene.
So I see schools are more prepared for it to remain on the current trends they are somewhere hybrids from our 100% digital but.
The second wave is too uncertain here.
And I would say the schools are really.
Par for any with strong service providers to be able to face whatever is yet to come and if the vaccine comps it will be.
Great for everybody and we strongly believe the digital war services, we'll keep on because there are some changes that our cultural changes and we believe there is a digitalization for K 12, not only Brazil, but worldwide.
But we will be great for our business and for the accounts and for everybody to get rid of the Covidien 90.
Hi, Michael This is good for speaking great talking to you.
I guess this is super important so we see that the next year. We have we are the best to well position that were very well positioned to face the new year, not only because we have our products and our services for you know a day.
For reopening of the school, but also because we can provide our services and products to the schools. If they are close it if they are partially open or if they are completely open right I guess the most important step we did at the end of this year was created.
Operating all these new opportunities for the school to teach English in ER. In addition, with the digital services such as Carnegie and I guess, we are very well positioned to face what what is going to be the next year personally I believe that the vaccine new only will be up.
They will be in Brazil.
In the second semester of the next year right. So.
Having said that I guess, we are.
Best position than any other player to you know to face for anyone.
Okay, great. Thank you.
Thank you for.
Our next question comes from the line of Suzanne Cielo.
So your line is now.
Yes.
Hi, guys. Thanks for taking our flashing had food, yes, that's true.
Net price dynamic.
[laughter] collaborate on there were no other.
Cool how wasn't dynamic.
Bye bye.
Thoughtful when they were too low.
Oh.
Make it passed through a moving patients.
Okay, well first question.
And the second question is related to that and then I'll come back to Paul.
GAAP on Bob.
Going off from.
Income from some of these people for lunch.
Hi, Hello, Hello.
Well just a quarterly net.
I think that a lot from going off that Oh walkable hold the debt.
That is all from kind of.
Well from going.
Thank you.
Hi, Susan and it is good to hear me here. Thanks for your question I will take your price in question and then.
And you would take the M&A question.
Regarding price, yes, we were able to to pass pricing above inflation as we normally do so it is true so in.
In this fashion was a regular year we.
We price our products, especially with per hour a.
Little bit above inflation, but another important effect in terms of average ticket is that we have.
Positive mix, if I can say that.
We have new products.
Non-GAAP and ph for the high school. So we have the new high school.
More than 50 per cent of our school based adopted the new products and this has a allows for price increasing bad debt in this new mix and.
As presented.
We also have the learning book in fact affect which enhances our mix.
Have much higher prices for the learning book, although it's only 20000 students. So far is at a much higher price. So when you combine.
Price per se.
The positive mix mix in fact, I would say we have a very sound price mix increase for next year.
So isn't it could you repeat it for years your second question.
Yes, it will be M&A target is possible from baidu.
Well from a buyer.
Oh, they oh price.
I think for all from going on that project that weapon.
Well at this point.
Yes, well.
We are when we talk about acquisitions, we must remember that we are doing two kinds of acquisitions right. The first one is trying to buy players in the current location. Okay and we have we have a you know our targets that we are in the due diligence period at.
This is specific targets. We are we are studying now that is a complimentary footprint compared to two hours and also.
We believe there is an excellent brand an excellent reputation right in the in the complimentary solutions, we are planning to acquire or debt.
The kind of acquisition. We are we are planning to do it's now it's the acquisitions that will bring a new dimension in terms of technology right with Bruno store and also with all the complimentary services, where we already have in our portfolio. We believe that we are very well positioned to.
To offer to the partner schools everything they need into next year, but we know that we have some gaps in terms of technology and to fill these gaps we are looking for these acquisitions in complimentary solutions, Okay and again, we are in a a divested steps with the some of them at.
And I guess in the next two weeks or at most at the end of this year. We are now so few acquisitions, all showing complimentary solutions.
Great. Thank you very much.
Thank you so much.
So when you for the questions from a phone lines from amounts from the call for Petro Goldman for any closing remarks.
Yes.
Well, thanks for everyone for participating on this call Rand I put myself available for any follow up questions. Thank you for every day.
Bye bye.
Ladies and gentlemen. This concludes today's conference call. Thank you for participation you may now disconnect.
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