Q1 2021 Quotient Technology Inc Earnings Call
You bet.
Cancel the question in the press Star two.
So the anytime during the conference you need to reach the operator. Please press Star then zero.
As a reminder, this conference call is being recorded and will be available for replay from the Investor Relations section of <unk> website following the call at.
At this time I would like to hand, the call over to Christine Francesca Vice President of Investor Relations.
You May go ahead and begin.
Great. Thank you operator.
Hello, everyone and welcome to our first quarter 2021 earnings call I Am Christina <unk>, Scott Vice President of Investor Relations for quotient technology and on the call with me today are our CEO, Steven Boal, Pam Strayer, our CFO and Scott Raskin, our president the.
The company's stockholder letter has been posted on the IR section of our corporate website investors that quotient dot com alongside of our press release and earnings presentation.
Before we begin please note that during this call you will hear forward looking statements, including the guidance, we will be providing for our second quarter and full year 2021.
These forward looking statements are based on information available to and the good faith beliefs of our management team as of the time of this call and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements.
These forward looking statements and the related risks and uncertainties are set forth in the earnings presentation slides located on our Investor Relations site.
Additional information about factors that could potentially impact our financial results can be found in our stockholder letter issued today and in the risk factors identified in our annual report on form 10-K filed with the SEC on February 23, 2021, and in our future filings with the SEC.
We disclaim any obligation to update information contained in these forward looking statements, whether as a result of new information future events or otherwise.
Please note the operating expenses gross margins and net loss financial measures discussed today are on a non-GAAP basis.
Each having been adjusted from the corresponding GAAP measure to exclude certain expenses.
A reconciliation between GAAP and non-GAAP measures can be found in the financial results section of the stockholders' letter issued today and in the earnings presentation slides posted on the Companys website.
With that I will now turn it over to Steven.
Thank you Christine Hello, everyone and welcome to our Q1 2021 earnings call.
We started the year of building upon the success of our internal transformation in 2020 as well as the continuation of the strong momentum from last quarter as demand for our platforms and solutions from current and potential customers and partners growth of <unk>.
Great example of demonstrating our market leadership with the collaboration between quotient innovative solutions, our customers retail partners and ultimately consumers is the launch of our new patent pending promotion amplification tool.
One of several exciting products, making their way through our innovation pipeline and into the marketplace.
Temporary price reductions or <unk> or discounts traditionally given at of grocery shelf to reduce the price of certain products for a temporary amount of time generally a limited number of weeks.
On average CPG advertisers run over 2000, PPR each week to promote and drive in store sales at grocery retailers.
<unk> have been both the mainstay of CPG and retailer marketing at the same time, one of the least efficient vehicles in the industry.
For example, it would be nearly impossible for shoppers to be aware of all of the available CPR.
Only approximately 10 percentage of <unk> are featured in our retailers weekly circular the primary way <unk> of our advertised shopper.
Shoppers would have to walk up and down every aisle of the retailer to see items via in store and on shelf messaging to discover the bulk of the remaining 90% of that weeks TPS.
From a retailer perspective, the manual processes behind thousands of weekly markdown products or skus or skus.
Our primarily kept in spreadsheets without an efficient way to communicate our measure of the impact <unk> have on shoppers has remained an ongoing challenge for decades.
There was clearly of business need for a better solution that would solve the inefficiencies in sub optimal results in the current process for brands retailers and shoppers.
After serving our retail sales teams as well as analyzing our customers' and partners' needs. We created a digital automated solution on our retail media platform that in our view would not only be desirable to brands and retailers, but would also be appreciated by shoppers, who can now take advantage of more savings targeted to their preference.
It is during the time when every dollar matters.
I am pleased to announce that at the end of Q1, we launched our patent pending promotion amplification tool in partnership with one of our retail network partners.
The Delhaize USA.
This solution allows cpg's and retailers to work much closer than they generally have in the past and is designed to provide them with a competitive advantage by driving better price awareness more sales and more shopper trips and.
In early statistics demonstrate the success of our solution was noted by Pepsico, who participated in a test of the new tool and saw a six 4% sales lift from the effective combination of marketing and trade budgets.
We are already in talks with several of our retail partners, who are interested in adding quotient promotional amplification tool to their solution set.
Also we see this tool opening the door to additional retailers looking to work with us.
From a CPG, our advertiser's perspective, this capability drives demand as they see the potential to target the right audiences at the right time with pricing incentives that have traditionally not been optimally deployed.
All with quotient industry recognized and measurable results now.
Now I'd like to share some additional highlights from the quarter <unk>.
Smaller cpg's are continued focus area and growth driver for US we saw over 100% annual growth in the number of long tail of smaller CPG customers in Q1, and we believe we will see this growth trend continue throughout the year as this segment of the CPG is eager to utilize our digital solutions.
National promotions.
Although one of the areas hardest hit by the pandemic. We saw this segment continue its bounce back that started last quarter with 23% growth in bookings on a dollar basis in Q1 2021 over the prior year.
We have repackaged how this product is sold and the changes have been very well received by our CPG advertising customers, leading to more scale and deployment the lineup with overall merchandising calendars.
The certainty around dates of promotion of availability and the connection to merchandising events is making it easier for <unk> to move their free standing insert or Ssi dollars to digital something that is continuing to gain momentum.
Retailer performance media we.
We saw an increase of over 170% and bookings dollars from our CPG customers in the first quarter over the prior year in turn our RPM retailer of using this platform saw approximately of 175% increase in alternative revenue streams.
Something that is becoming increasingly important to retailers as they face price and margin pressure. In addition to challenging performance comps in the second half of the year forward and we will be looking to offset this with alternative revenue sources wherever possible.
Digital out of home.
At the end of Q1, we had inventory of over 194000 screens nationwide with access to over 60000 screens in store.
Our ability to use exclusive shopper data to identify the right screens and match them to the right audiences combined with measurable Rois continues to drive customer demand for this offering, especially at a time when shoppers are spending more time in store due to COVID-19 testing and vaccination protocols.
National Rebate solutions.
Since our launch at the end of last year, we have seen of 125 advertisers activate on this platform.
This offering when paired with our new national promotion sales packaging, which I mentioned earlier provides brands of all sizes, a true digital option, allowing them the shift spend away from offline channels, primarily the ssi and pay per circulars to online a more efficient and measurable format.
Sponsored search.
We continue to see demand for this solution as advertisers and retailers look for more ways to connect when consumers are planning and building their shopping list and cards.
As of the end of Q1, we had over 250 of our CPG customers using quotient sponsored search with the growing number opting for the self service capabilities.
We have several innovations for this platform that we'll be bringing to market over the next two quarters and look forward to continued growth and success of CPG and retailer engagement and sponsored search.
Finally, I am pleased to share that we continue to see growing demand for our retail network. We recently signed regional grocery chain plum market as they look to a retail promotion platform to offer savings to more consumers. Additionally.
Additionally, we expanded our partnerships with two of our existing retailers are major drug chain, who we signed for our inland offering and as I noted earlier, our whole delhaize USA added our promo amplification tool to provide a more comprehensive solution to better optimize trade spend deployment and shopper engagement.
We continue to focus on growing our retailer network, adding new retailers in our core and non core verticals and expanding relationships with our current retail partners as they look to add more of our innovative capabilities to their platforms to garner more sales and a better shopping experience for their consumers.
Data analytics and measurement or one of the key components of our success and why we continue to be a market leader in our space with growing demand for our platform from advert from advertisers and retailers on that note I'm thrilled to share that we recently hired Matt Kreps sake, as our chief analytics officer of quotient.
In this role Matt will lead our company's data analytics and measurement strategy and practice designed to enable our clients and retail partners to deliver high performing data driven marketing strategies fueled by our powerful data driven insights into consumer purchase behavior.
Matt brings to quotient of wealth of experience with more than 15 years of experience with data analysis and various managerial roles at Nielsen, where he most recently led attribution media planning and activation of products.
As evidenced by his background of reputation. It is clear mass of visionary leader, who has the ability to transform data into insights and more importantly commercial applications.
He has had quotient on this radar for some time and believes we are well positioned to continue to be a leading innovator in the retail space through technology and solutions that help retailers and advertisers deliver more valuable interactions with consumers and we're thrilled to have him on board.
Moving onto our outlook for Q2, and the rest of 2021.
Based on early indications, we're seeing strong Q2 bookings as well as continued healthy momentum for our pipeline for the latter part of the year.
We believe this will result in revenue growth of approximately 18% in the second half of 2021 over the first half of the year.
We believe the continued market tailwind our growth drivers and our ability to execute will propel us through the upcoming quarters and year.
Our updated annual revenue guidance for 2021 represents 15% growth over 2020 at the midpoint and our adjusted EBITDA guidance for the year is approximately 25% growth at the midpoint of.
Both are higher than we previously guided on our Q4 call as we are seeing strength in demand for our solutions witnessed through our bookings and pipeline visibility for the remainder of the year.
We're doing what we set out to do and I'm proud of our team's ability to rise to the occasion and evolving environment to deliver on our goals, putting our key stakeholders first I remain confident that quotient is well positioned for growth for the upcoming quarters near and future and with that I'll now turn the call over to Pam.
Pam.
Thank you Steven and good afternoon, everyone. My remarks will be focused on us I want to highlights I encourage you all to read the full prepared from a until results in our stockholder letter posted on the Investor Relations page of our website.
The delivered another strong quarter in Q1 of our customers look to <unk> to help them effectively deployed our promotion advertising and shop response to generate high rois for the brands our retail partners continue to the do the lines and in some instances of more of a solution to the quotient powered platforms to increase sales of our butter shop of explorer.
Answers and boost alternative revenue streams as they approach challenging comps in the quarters of the hub.
As a result, we exceeded our guidance and delivered revenue of $115 3 million, 17% growth over the prior year. If you exclude approximately $9 million from a portion of our media business that we exited in Q3 2020, Q1, 2021 revenue would have been up 21% compared to the prior.
Yeah.
Media revenue in Q1 with approximately 40% of total revenue, increasing 17% year over year with growth across several of our media solutions offset by the elimination of the media business. We exited in Q3 2020, if you exclude approximately $9 million from the portion of the media business, we exited Q1.
Non media revenue would have been up 52% for the first quarter of 2021 compared to the prior year.
I'm not sure of revenue also increased by 17% year over year, primarily driven by digital paperless, which was up 29% non.
And then came from Q4 of 2020 continued through the first quarter of this year as brands returned to more normalized promotional spend levels in the system.
With historical trends revenues from digital prints of home and specialty retail continued to decline with Q1 revenue from these two categories down over the prior year.
GAAP gross margin for Q1 was 37, 6% down 50 basis points compared to the same quarter last year non-GAAP gross margin in the quarter was 43, 7% down 140 basis points over last year, GAAP and non-GAAP gross margin increases were primarily due to product mix with a <unk>.
Inefficient increase in lower margin media solutions, lower individual category variable margins across promotions and media from a higher mix of shopper bunch of spend versus non sometimes of spend.
And higher employer related expenses, driven by head count growth and an increase in bonus expense.
The revenue from shopper versus national standard of impactful because shopper projects carrying revenue share costs and our cost of sales while national standard has little to no revenue share and higher margins.
The decreases in GAAP and non-GAAP gross margin were partly offset by an improvement in operating leverage and the elimination of the media businesses. We exited in Q3 2020.
Additionally, GAAP gross margin was partially offset by lower amortization of intangibles as a percentage of revenue.
Non-GAAP gross margin as a percentage of revenue declined in Q1 compared to Q4, primarily due to the fixed cost spread over a smaller revenue base, partly offset by seasonality driven higher promotions product mix.
We delivered $6 $8 million of adjusted EBITDA in the first quarter of 2021, an increase of $1 $8 million over the prior year driven by increased revenues, while operating expenses remained low due to savings in travel.
Q1, non-GAAP operating expenses came in slightly lower than previously guided at $45 5 million. However, this was $4 $4 million higher than the previous year a.
The year over year increase is attributable to increases in head count higher commissions from increased revenues and was partly offset by a decrease in travel expenses.
Looking at cash we delivered cash flow from operations of $10 $5 million in the first quarter. This was driven primarily by strong collections in the prepaid expenses. The ended the first quarter with approximately $241 $1 million in cash and cash equivalents of $18 $3 million from prior quarter.
Now turning to guidance as Steven noted, we are well positioned for growth in the upcoming quarters and year. Additionally, although it's early days in Q2, we saw strong bookings in April and believe this trend will continue throughout the quarter and the rest of 2021. Therefore, we expect revenue for the full year of 2021 to be in the range of 505 millions of 502.
One of $5 million with the second quarter revenue in the range of $117 million of $125 million or approximately 45% growth over Q2 last year at the midpoint.
As reported in the past revenue mix and therefore, our margins for the year of difficult to predict as expected. We saw some media seasonality in Q1. Additionally, as forecasted we saw our bookings mix towards promotions come back stronger in Q1 and expect this trend to continue as we move through the year and chemo normalized spend in this area of brands.
The stay relevant and mitigate rising concentration on top performance comparisons in the second half of the year.
We remain focused on our non-GAAP gross margins, we believe will benefit from expanding our self service offerings growth in revenue from national promotions and media budgets demand for other higher margin offerings, such as digital paperless from national rebates and the automation of processes of our possible each of which contributed to an improvement in this metric.
The time.
Additionally, we expect certain product revenues will be shifting over time from gross revenue recognition from net revenue recognition, which will not impact the gross margin dollars that generally results in higher gross margin percentages. However product mix remains the key component of this metric remains the largest variable in gross margin predictability.
Specifically for our Q2 outlook, we expect to see gross margins decreasing as a result of continued high proportion of shopper based campaigns and medium promotions.
We believe we will start to see a reversal of the strength in Q3 and the remainder of the year as we expect to see our higher margin promotional offerings, including more demand for national promotions National rebates and digital paperless offerings balancing out the demand for our media solutions.
For the remaining guidance metrics, we expect non-GAAP operating expenses to be approximately $48 million of $50 million for the second quarter of 2021.
Adjusted EBITDA is expected to be in the range of $2 million to $12 million for Q2.
For the full year 2021, adjusted EBITDA is expected to be in the range of $50 million of $65 million.
We expect continued positive cash flow in Q2 due to the tailwind from solid adjusted EBITDA results from Q1.
The weighted average diluted shares outstanding we expect approximately $97 1 million for 2021.
We finished the first quarter of 2021 strong from early indications Q2 in the second half of the year of shaping up to propel us forward on our growth trajectory with customers working closer with us and utilizing more of our solutions, our retail network expanding on our current partners ramping up their platforms to benefit from increased alternative revenue streams and provides.
Best in class shopping experiences to the consumer.
We look forward to providing you with updates on our progress in future quarters as we move of the year.
And without the will now take your questions operator.
Thank you we will now begin the question and answer session to ask the question you May Press Star then one on the telephone keypad and few of them.
Using the speaker phone please pickup your handset before pressing the keys to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
The first question will come from Chad Bennett with Craig Hallum. Please go ahead.
Great. Thanks for taking my questions.
This job on the quarter and in the.
The the guide for Q2, certainly looks looks very good.
So Steven maybe a question for you just in.
In terms of where you think we are or what you see in your business in terms of.
CPG promotion spend.
Where we are today versus pre pandemic and and and kind of when you expect.
And it's obviously, a moving target, but when you expect promotional spend by the cpg's to kind of get back to pre pandemic levels do you expect that this year second half any color there.
Sure. Thanks, Chad Thanks for the comments.
So look we all know how hard promo spend got hit last year in particular during the pandemic.
We believe that by the back half of this year, we'll be back to pre pandemic levels, and maybe even exceeding that because as we head into a period of time, where where prices are going up there are very tough.
Very tough comps come in year over year of given the strong purchasing the was going on in grocery during the pandemic if people move to ordering and eating at home versus going out that the promotional activity by cpg's and retailers just kind of pick up pretty strongly in the back half and thats evidenced by the by the forward bookings that we've already.
Starting with the log but also the discussions we're having with our CPG partners and retail partners I'll add one more point to that.
We've talked at length about how the MSI is moving in those dollars of moving to digital.
We rolled out of platform that effectively allows that to now happen at scale and that's our national rebate platform.
And we've been very hard at work developing partnerships for the expansion of that platform and our objective is in the back half to maybe make that platform available to every household in America and so stay tuned to see some exciting announcements from us on some of the partnerships. We have developed really at scale really broad based that allowed.
The CBD is to continue to move those dollars at scale. So the short answer is back half of this year will be at least the pre pandemic spending.
Spending based on what we can see sort of a farm and probably probably over that.
Great Great color and then the follow up for me.
Maybe four for either of you Steven or Pam, but so can you just sync up for me.
The dollar bookings increase you saw in your RPM business I think it was 170% I think you indicated on the call.
Relative to your media growth, which on a normalized basis, I think Pam talked about it growing 52% year over year.
If we're going to start talking more and more which I think is a good thing about the the dollar value of bookings going across your platform, how do we sync up those two growth rates.
Yeah.
The good question and I would say.
The timing of bookings don't necessarily equate to the timing of revenue recognition.
We can we can get in bookings during the quarter that relate to the current quarter or the next two or three quarters.
So we are seeing tremendous tremendous bookings in the RPM stake.
But how that equate into revenue into which period, there's going to be a disconnect. There. So thats why youre getting different.
Different metrics for revenue and bookings.
The reason the agenda.
Sorry.
Since the.
Just to provide more color on operating dollars from the same directionally, what's going on but the.
But that level of Delta I would think would be positive for the future is that the what.
Yes, absolutely okay, yeah yeah.
We're seeing a lot of real strong signal on revenue growth and I think our.
Shareholder materials underscore that any of that point of cross, but yes, you have to is looking good for us the <unk>.
Interest on our network the interest in our business, it's really strong.
Okay, and then maybe one last one from me I apologize, but and it's probably for Pam just sort of Pam just looking at the guide.
<unk>.
Maybe the missing component is is kind of what your opex expectations are for the second half relative to what you guided for for Q2, but if I'm at the top end of your revenue range.
And it probably depends on how how much gross margin improves.
Getting to the the top end of the EBITDA range I think is a little more challenging what are the puts and takes in the second half from an opex or if you care to talk about gross margins then I'll hop off thanks much.
Yeah. So let me try and put this in context of the gross margin professional and can get a little challenging and complex.
What we experienced this quarter was a dramatic shift in product mix between shopper based budgeting and national based projects.
So we've been talking about the collaborative spend programs that have been out there now in some cases for over a year.
And as a result, we're seeing tremendous pickup of tremendous demand for running campaigns using shopper budgets.
And the carry lower gross margins in the national spend right. So that's a big mix, what's going against that and we think thats probably going to continue into Q2, just because of the strength of that collaborative spend program, but in the back half from now opportunities are really kind of pick up.
Our rebate solution only launched in Q4 and like Steven said, we think thats going to be the big driver of a lot of FSA dollars moving towards the estimate from our space, which is high margin dollars.
So we do think that come on kind of pick up and we're kind of a net net.
In the near term, we're in the point where.
The product mix moved against US before we could get promo growth really going on on rebates that well see that come back from the second half. So it seems like just to sum it up real quick sorry that debt.
Relative to the June quarter.
At least where we stand today, we should see a pretty material improvement in gross margin percentage in the second half based on your EBITDA range.
Yeah, So what we did with the EBITDA range.
What's bringing up the bottom half because we're very confident now that we've got some ex demand on our network net revenues are going to be strong for the year.
What's a little bit more of an unknown in the graph.
The margin percentage that we'll see.
<unk> will have to pull in our belts on opex.
To get those EBITDA numbers, but we can we can manage through that.
I think that gross margin pressure will be another quarter and then it should turnaround.
Thanks, so much.
Yep.
Thank you. The next question will come from Samuel Wilson with Oppenheimer. Please go ahead.
Hey, guys of the salmon for Jade. Thanks for taking my question two quick ones more qualitative as I could.
Are you guys seeing any impacts from supply chain issues are largely the used playing to raise prices maybe in the back half of the EBITDA given the tougher comps and then number two the how should we view the adoption of yourself service offering and the progress of making throughout the year.
Sure.
Let me, let me take the the self service question.
And the panel take the supply chain question. So on the self service front we've.
We've made a ton of progress we've spent a very good focused effort in the past many quarters lining up our business teams and our engineering and product teams. So that we could go ahead and start to move more and more of what we're doing the self service perfect. Examples of that would be our digital out of home.
And in our sponsored search quotient sponsored search area, but we have we of our roadmap ahead of us to effectively move nearly all of our product portfolio into self service and that includes our promotions platform. So.
Sometime in next year, we would expect that actually of our promotions platform would all be of self service platform as well. So I would say I would give us very high marks on the progress that we've made so far on that.
The Pam to you on our supply chain question, Yeah, I'll jump in on the supply chain. Ken question. You know, we've been talking about supply chain as per a little while from the pandemic started and as we mentioned in Q4, we do have customers in.
Household cleaning and paper supply.
Part of the market, where they are still expressing some supply chain and securities to us.
The only talked about this in Q4 and I don't think Thats. The situation has changed much even back then they kind of predicted that that at the half the second half of 2021 before they felt they would get the supply chain back to a position where they felt was healthy and flexible. So yes. There is still a little bit of overhang, there and we expect that to be in.
Going away in the second half of this year.
Okay. Thank you very much.
And again as a reminder, if you would like to ask a question. Please press star one.
The next question comes from Steven Frankel with <unk>. Please go ahead.
Good afternoon, and thank you.
For giving me the opportunity to ask the questions.
On the self service theme.
Is the sponsored search shift to self service on its own enough in the near term to have some lift the gross margins in the back half of the year.
Yes.
Thanks for the question to see if it's a good one.
On top of service because it is an opportunity to get more high margin revenue and.
With that I would say is part of it but it's not going to be all of it.
We are disclosing that our revenue that we recognized net.
That is still only about 2% of total revenue. So the majority of our revenue is still based on growth the uplift in gross margins in the second half will be somewhat due to self service, but it'll also be due to the national rebates.
Which like I said, we just launched in Q4, and we expect to have really nice reception and growth from that area and the share.
Okay.
Speaking about revenue recognition.
The media business that was discontinued is that headwind still about $9 million in Q2.
No. That's a good question off of in Q2, we actually switched from growth to net revenue recognition of that business. So Q1 of last year was about 9 million Q2 of last year was more like about $1 million and growth share gross margin and then in Q3 of the whole business went away.
Okay. So you have of $1 million headwind.
Yeah.
Future cross function of homes.
Yes.
The Steven.
Pretty impressive RPM stat.
The compares against the pandemic of last year, one of those RPM bookings look like if we go back and say look of benchmark. These against Q1 of 2019.
I think Pam.
I don't.
The I don't have the tough numbers in front of me C&I apologize.
Okay.
So in theory.
Alright.
Steve are you asking of look back at what the forward bookings look like.
No I guess im just saying, what's the normal comp.
The huge comp because you're comping against.
The tougher period, maybe the business was so much smaller in 19 with the relevant question.
Yeah, I'm not sure I'm not sure you can use that as the as a good basis of 19.
Okay, That's fair and then Thats the.
It's been a couple of minutes talking about your progress in.
Building out the non traditional retailers for you you announced one last quarter.
Kept saying we had another one close we haven't seen it yet kind of what's the pipeline look like of the.
Yeah.
The new category of partners trio.
Sure So we announced in the automotive category.
So we were at least the specific about the category as we've discussed the.
The the retailers want to be in control of the messaging and their timing and so when they go live of when they are ready to announce themselves into the marketplace. That's when we can announce but I can tell you that.
Continues to be the case and it's more so every quarter our pipeline for additional retailers in core and outside of core verticals and the pipeline for expansion of our platform onto existing retail has never been this big.
It's it's pages long, it's really it's really matured and thats largely because of two things number one.
We have a focused effort against it under Scott Raskin leadership, we've identified and built out a separate team that really just focus on growing the number of retailers and the types of retailers and expanding beyond the vertical that we're in and when you of a focused effort against that Theres a lot of opportunity. The second thing is that there is a lot of momentum being day.
And in the industry and our platform is starting to be recognized as the standard and easy to implement with an example, as we went live with plum market to the smaller regional grocer, but we've now matured our platform to the to the place where anybody can tap into it it used to be that we would only work with the larger retailers because theres a lot of effort involved but we spent a lot of.
Quarters.
Getting the platform ready to basically be able to connect to anyone.
That capability plus back teams focused effort on growing youre going to see quite of bit of activity. There. It's again, we just we.
Can't announce them before they are ready to be amounts.
Okay. That's fair thank you.
Thank you.
Ladies and gentlemen, this concludes our question and answer session I would like to turn the conference back over to management for any closing remarks.
Thank you operator, and thank you all for joining us today and clothing as advertisers and retailers head into what could be of challenging inflationary environment and tougher comps. We believe theres never been a better time for quotient. We were pleased with our first quarter results and believe we're very well positioned for upcoming quarters and years. Thank you again for joining us today.
Yes.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
[noise].
Okay.