Q1 2021 Ritchie Bros. Auctioneers Inc Earnings Call
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And robust financial results for shareholders.
G P V increased 11%.
Service revenue increased 13% and adjusted operating income increased 31 per cent.
These numbers underscore the leverage in our model and Sharon will walk you through the numbers shortly.
Let me talk a little bit about how the quarter progressed well.
When you last heard from US in February we indicated we were seeing uncertainty in the environment.
Our published results for our Orlando auction clearly showed consignor, we're taking a wait and see approach.
In response to constrained supply conventional wisdom would have been to save cost and pull back on marketing.
Instead, we doubled down on our commitment to drive the very best outcome for our customers and by increasing demand through higher levels of marketing spend.
For our buyers we continue to upgrade our digital experience and for our sellers, we continue to improve our digital marketing techniques and bundled regional events to bolster demand in drive used equipment pricing.
Our actions led to Orlando and Houston seeing strong improvements in pricing of used equipment compared to last year and we leveraged this strong pricing as a rallying cry for our sales organization to help consignor gained confidence.
We are very happy with the first quarter. However, I want to note that year over year comparisons will become less meaningful as we get later into this year as COVID-19 heavily distorted our typical seasonality in 2020.
We continue to have an intense focus on the customer and fiercely drive all components within our control.
So we are able to cope with external headwinds and manage the volatility while benefiting when the environment changed.
Overall, the environment continues to be uneven with pockets of strength like residential.
Offset by pockets of weakness like nonresidential construction and conditions are also varying significantly around the globe.
This dynamic is causing lumpiness of supply in the second quarter is off to a slower start.
Some consignor, they're busy others are waiting to see what happens.
Just continuously changing macro development timing size and scope of infrastructure stimulus.
Tax changes vaccine distributions, we know there have been issues with equipment production given the supply chain as well, while COVID-19 wagers on in certain parts of the world.
The customer remains core to everything we do and we are executing in areas that are in our control our digital marketing team continues to deliver demand for our global buyer base with a 42% increase in bids for lots sold.
We believe this demand generation is helping to drive increases of used equipment pricing.
We also continue to drive strong operating leverage in the quarter with our COVID-19 protocols very much in place.
Last quarter, we talked about how we changed our organization to drive growth and execution at a global scale.
This quarter, we continue to follow through on that commitment.
I am pleased to announce that Sam Lyon for has accepted the position of international strategic accounts leadership to help bring the best practices. He led in North America to our international markets.
After sharing discusses our financials I will talk about how we are executing against our strategic pillars, and then we will do a Q&A.
And now over to share.
Thank you Anne and good morning, everyone.
Overall, we are pleased with our total GDP growth of 11% year on year or 8% year on year on a constant currency basis.
Led by geographic strength in Canada and international.
All our channels contributed to growth.
Added by strong used equipment prices for the quarter compared to last year.
I would like to add some color around our G. T V growth.
First G T be sold in the U S grew by only 2%. However, this growth was hampered by the lack of internationally sourced equipment at our Orlando auction this year.
Last year, a meaningful part of our G. T V in Orlando came from international Consignor.
And that source of supply for 2021 was significantly reduced given continued COVID-19 driven challenges.
Looking at G. T V sourced only in the U S growth was in the high single digits.
Additionally, I would note that G. T V benefited approximately $8 million in the quarter. When we met the auction shifts compared to last year due to COVID-19 related changes to our auction calendar.
Combined with the headwinds of the non repeats of our Las Vegas Con Expo events.
And a collector car event.
With these shifts total number of auction sales days increased 7% to 93 days in the quarter compared to 87 days last year and total lots sold increased 15% year on year.
As Anne noted as we go through 2021, the year on year comparisons are going to be difficult given the impact of COVID-19 on our auction calendar as well as international border restrictions that we experienced last year.
We think that looking at G. T V volume growth over Q1, 2019 base is a good comparison to assist investors with the filtering out of COVID-19 noise and provide a better sense of underlying trends.
GAAP basis, our G. T V grew eight five per cent.
Total service revenue grew 13% year on year and using 2019 as the basis for comparison for the same reasons as previously stated service revenue increased 19, 5%.
We continue to think that service revenue growth is the best indicator of overall top line performance for our business model and most reflective of underlying business trends in the corner.
Our cautious tone going into the quarter was warranted given Orlando was tracking down $45 million for nearly 20% compared to its 2020 pre COVID-19 event results.
And we saw some of the Texas auction building slowly as we witnessed consignor hesitancy as they took a wait and see approach due to some of the aforementioned macro issues.
The exceptionally strong price results for the Orlando answered some of those concerns and contributed to the 15% increase in lot growth process during the quarter.
As Anne noted the environment continues to be dynamic and we continue to see lumpiness as our <unk> is off to a stone cold start in the U S. Similar to what we experienced at the beginning of Q1.
We saw an eight 4% reduction in cost of services due to our COVID-19 protocols and our pivot to a 100% online bidding on sales day.
It is important to note that as you think about the second quarter and the rest of the year, we will be cycling over our COVID-19 protocols and would not expect further decline in cost of service year on year.
These actions drove a strong operating leverage with a 31% increase in adjusted operating income and 19% increase in adjusted earnings per share.
Note that our cost of services are flat compared to first quarter 2019. Despite G. T V being up eight 5% in the same timeframe underscoring the leverage in our model.
I also want to specifically discuss acquisition related costs incurred in the quarter associated with the Rev services transaction.
As part of the acquisition the company incurred $2 9 million of acquisition related costs in the quarter.
Of which $2 5 million of those costs related to the amortization of share based continuing employment costs.
We continue to expect the amortization of share based continuing employment costs will total approximately $10 3 million in 2021.
These costs will not be adjusted out of our future earnings as they will will be recurring charges.
However, it will be visible on this acquisition related cost line on the face of the statements.
Before I turn to auctions and marketplaces I would note that our other service segment revenue increased 24% year on year due to the $5 6 million full quarter contribution from Roche services and strong growth in Ritchie brothers financial services, partially offset by lower in <unk>.
Larry and logistics revenue.
Now onto auctions and marketplaces.
<unk> service revenue grew 10% with A&M service revenue as a percentage of total G. T V coming in at a solid $13 four per cent for the quarter.
It is important to note once again the contract mix can significantly skew total revenue growth depending on consignor preference for how the deals are structured.
We are agnostic between service and the inventory oriented contracts and stand ready to serve our customers in any capacity they so choose.
That said inventory sales continued to be lumpy, increasing 39% driven by all regions.
Our international region faced easier comps given the COVID-19 driven border closures last year.
While the U S saw benefits from construction deals and non rolling stock the planet coming back online.
Canada also saw benefits from two large construction deals.
Inventory rate increased 229 basis points to 12% compared to last year.
Our disciplined approach to at risk deals, particularly inventory contracts.
Bind with very strong used equipment prices drove these results and we are very pleased with overall rate performance during the quarter.
Overall, our SG&A increased 18% year on year, which does exceed our service revenue growth of 13% in the quarter.
SG&A growth was impacted by significantly stronger performance based incentive increases severance foreign exchange impacts.
The addition of Rev services employees and.
And executive management changes that begin to comp fully in Q2 of 2021.
Excluding the bonus share based compensation and severance impact in the quarter.
Our SG&A grew only four 4%.
We think the for 4% is a better basis of core SG&A growth.
Because in 2020, the uncertainty of the moment requires little to no incentive accrual.
Vs are very strong performance results in our current quarter.
Although our travel advertising and promotion expense was down year on year. We anticipate these costs to start escalating from current levels given the pace of vaccine deployment, particularly in the U S.
We are a sales driven organization and our talented sales force is eager to get back on the road developing and cultivating customer relationships as it is becoming safer to do so.
Our balance sheet and liquidity remain in a very strong position with our leverage decreasing to 1.0 times on an adjusted net debt to trailing four quarter EBITDA basis.
We had very strong cash flow in the quarter and I am pleased to note that operating free cash flow to net income came in at 213% on a trailing four quarter basis, well ahead of our 100% evergreen target.
I would like to add my thanks to our dedicated employees for their continued focus on health and safety and continued to resolve to meet the needs of our customers. It has been an unprecedented 12 months with unique challenges, but I am very proud of the team with that let me turn the call back to Anne.
Thanks Sharon.
I am very pleased with the progress we are making on our new strategy to become the trusted global marketplace for insight services and transaction solutions for commercial assets let.
Let me run through the key developments by pillar in the last 90 days to help us drive long term value creation.
Customer experience and.
As described last quarter, we now have a dedicated seller and buyer team for responsible for delivering the best customer experience.
The seller team made enhancements to our regional events to drive more demand.
While the buyer team continues to make strides digitally with virtual yard walks and enhanced videos of equipment to build buyer confidence.
Employee experience, we are engaging with our employees by asking them what is important to them for our ESG related social giving initiatives and we are in the process of Crowdsourcing a list of those ideas.
Modern architecture in the quarter, we completed the roadmap for our modern architecture and successfully launched our cloud based inspection micro services.
Inventory management system.
We are taking our first step in creating an industrywide equipment Vin like system and enhancing our equipment valuation tools between Ritchie brothers and routes services.
Lastly, accelerating growth.
We are seeing very positive signs with our satellite sites internationally with not only incremental G. T D like new buyers and sellers, we are encouraged by the Kpis and.
And are now rolling you site into our third and fourth quarter plants.
We are in the early stages of the new sales coverage model in Texas and now that we have a team in place we are learning a lot about how it works and using these learnings to quickly refine our strategy.
Lastly, as you heard me indicate earlier.
We are rolling out strategic accounts globally.
Now turning to current trends and outlook I would like to share some considerations for the remainder of 2021.
Our priority remains unchanged number one the health and safety of our employees, while focusing on execution.
Our execution priorities are growth in a constrained environment.
<unk> the execution of our strategic pillars.
Keeping tight controls on costs for.
Focusing on our true north improving our customers' experience.
We continue to see upside opportunity balanced by uncertainty and risks as well.
We see some consignor is beginning to focus on cash flow and inventory management to achieve their liquidity in.
In 2020, we did not see the level of distress supply, we expected and think theres more to come here as banks begin to apply more pressure to the FERC for delinquent accounts.
We are also watching for both timing and magnitude of government stimulus to begin driving infrastructure spend we also see potential to confine ores that are on the fence start to act in terms of equipment disposals and fleet realignment due to the strong equipment pricing environment.
All that said.
There remains risk because the implications of COVID-19 continues to cloud the outlook.
We have all heard from Oems in terms of various supply chain issues inhibiting their ability to produce equipment currently or later this year.
Although the U S have made remarkable progress on the vaccine global timetables for vaccine distribution continue to be murky and with newer strength of COVID-19, we think there's a risk of additional border restrictions.
Lastly, we continue to carefully monitor any potential changes in the sentiment, which could impact equipment, the bans and soften the current pricing environment as we progressed through the quarter.
All in all our tone and outlook remain cautiously optimistic.
With that operator, please open the line for question.
At this time I would like to remind everyone in order to ask a question you will need to press star one on your telephone.
To withdraw your question press the pound key.
We will pause for a moment to compile the Q&A roster.
Your first question comes from Craig comes from from Baird.
Yeah.
Hey, good morning. Thank you for taking my question really wanted to take a look at the second quarter and the balance of the year and get a sense for the number of auction sales days that you have in Q2 in particular as we tried to narrow down what the expectation should be for gross transaction value.
So Craig Hi, it's Sharon I can I can take that question.
I think our auction calendar is fairly fluid through what for quarter.
What I would.
Project, what we sort of see today is that it's probably in a similar range as what we experienced in Q1, albeit I would point out that our current month for anybody that's scraping would certainly see a shift in the other direction as the COVID-19 related auction calendar shifts from last.
Year start to cycle over each other so particular at particularly L a and Montreal.
But.
I would say use a similar kind of.
Outlook as as was used for as when we resulted in for Q1.
That's helpful. Sharon, but just to be clear is similar and that you expect a roughly 7% growth in the number of selling days or similar in terms of GTA V. What's the metric youre anchoring on.
The number of days.
Not the growth in the number but the actual number.
Yeah, the actual number of days.
And I'm sorry to press for what is how does that compare versus last year.
Chimera Guide me, if we've given that information out or if it's available on the website you could certainly see it in terms of calendar days that we have.
Presented on the website.
Okay, we'll take a look at that thank you so much I'll get back in the queue.
Your next question comes from Michael <unk> from Scotiabank.
Yes.
Hey, good morning insurance.
We're obviously reading a lot about the tight heavy equipment inventories in the U S.
Feels similar to 2017, obviously, a lot of differences as well with COVID-19 and a shift to online and the completed integration of.
Our implant, but Ritchie as U S. G. T V has proven a lot more resilient you know to inventory tightness. This cycle versus last can you comment on.
Some of the major differences that are driving the better performance.
Yeah, So Michael Hi, it's and I'll start and then Sharon can add some color having not been here in 2017.
So you know the team are really pride themselves on really looking at the world. The way you guys first met me, which is in our control and out of our control. So let's just use Q1 as the example.
We were coming into the quarter. We got you know very very clear signals that there would be equipment tightness.
Orlando, if you kind of take out the pricing effect ex post we were looking at in Orlando down about 30% and primarily driven by you know folks, saying, hey, listen I'm going to hold on I'm going to hold onto my equipment.
And Con Expo that we knew wouldn't repeat the biggest con Expo. So we were staring down a fairly healthy year on year comp.
And and so the team stood tall and said okay.
Let's start from North our true North is driving the best outcome for our customers. So instead of kind of.
Saving cost pulling back on marketing kind of we'll call. It conventional wisdom no. We we are going to double down we are going to drive demand. We are going to drive the best outcome. We can we can for whatever customers. We have we will then use that as a rallying cry for any customers that are sitting on the fence.
To bring them for word to say look look at the results. We're driving so it's like a shade of gray come on in a very very clean by kind of that playbook, playing out almost verbatim the way that I describe it.
And Super proud of the team for not flinching standing tall understanding the things that we can drive which is really.
The demand side to then.
<unk> in a great price for our customers, our consign ours, and then kind of bring them into the market that was kind of the.
The backdrop of how it played out.
Let me pause here for sure and anything to add these are the kind of 2017.
I think the only difference I would point to as the demand environment is significantly different than 2017, because we are clearly seeing.
Robust demand across all.
Sectors, whereas in 17, you were really relying on demand for products shifting.
Between.
Construction, sorry between oil and gas into construction and were really starting to see kind of all sectors demand is quite strong.
Your next question comes from Cherilyn Radbourne from TD Securities.
Thanks, very much and good morning.
So the company is always press released the results with large auctions and that's really all that investors have to go on to judge how the business is performing between quarters, which is pretty important I think as we navigate an unusual cycle and for the <unk>.
Last two quarters at least as large auctions haven't necessarily paint the full picture. So I'm just curious whether the company has given thought to the need to possibly disclose other metrics to provide better visibility to the investment community.
Yeah, Hi, Sharon I'm, sorry, Oh, perfect high share over to you okay.
So and Oh, I, I will take that and I'll, let them and kind of close off.
I think one of the things that we have added to the press releases has been the the regional sales. So I think that we have added some additional color. Most recently with them with the releases of those events you know clearly we look at different opportunities.
And you know what we did incorporate into this Q.
Some additional metrics for comparison, albeit is based on quarter releases not not in quarter.
Updates.
But I think certainly.
We're open to feedback in terms of any information that investors or analysts might find helpful. We're continuing to look at ways that we can make that a more.
More visible and helpful.
But also in the quarter you know it is you know our options are.
Public so that information is out there on a on a regular basis anyways.
I mean, Dan I don't have anything else that you.
Yeah, just echoing Sharon's words on you know our commitment is to.
Help you guys with looking at the business the way that we look at the business right and so for US really the headline is that we we want to get to a place where.
And you you actually saw it in our Q that debt instead of focusing on live and online which is really an antiquated metric when 100 per cent of our transactions are online. We are focusing very much on what are the true metrics for sellers that we can be driving which is really.
The demand generation and the pricing what are the metrics that we're driving for buyers, which is selection and confidence and you know how how does that translate and translate from the digital world for kind of you know.
Ultimately to bids for item, but how do you know how much people are clicking in how long they're spending on each page like all of these kind of digital metrics.
So.
Cleanly Echo insurance words, we in that new mindset. We are we stand open in and want to provide metrics team guys to see the world that way since we're no longer Hey, you know putting all our exit from the basket of these large live events, but when we're putting all of our runs in the basket. So.
Driving the very best experience for our sellers and the very best experience for our buyers.
Your next question comes from Gary <unk> from Barrington Research.
Hey, good morning, everyone.
This statistic your bids per lot of 42% is pretty interesting to me, but I was wondering do you have that comped against Q1 19.
That is a great question, Gary I don't have it in front of me, but we will pull it while we're still in the Q&A section and so before we close out the call. We will we will we will pull the staff.
Your next question comes from Larry de Maria from William Blair.
Hi, Thanks, good morning.
Quick questions here first to clarify the auction day.
I guess I'll have to go back to the website to look for.
I assume that includes all the AG day auctions as well.
And the second part can you just talk about the up for 4% core SG&A growth.
You should be modeling for Q2 Q for somewhere in that four five per cent range.
One other comment or should we be looking for something different to clarify that thank you.
Yeah, So Larry it's Sharon I'll handle both of the questions. So first day auction day is yes. It would include any egg day selling as well.
So it would be inclusive of everything online as well as all the different formats.
And then the discussion.
Discussion around SG&A was less a forward looking comment it was more just to put current quarter SG&A performance into context versus revenue growth.
So because there were significant puts and takes into that number. We just wanted to kind of unpack. It. So that you could look at it and then make determinations around cash.
How you would view it goes forward.
A couple of things I would note you know the FX pressure just like we called out a normalization on GTA V. Because of FX. The counter to that is that our costs equally increase due to FX, particularly because of the head count and the administrative offices and and.
Our sales teams and operations teams that we have in Canada as well as across the globe, particularly in the Netherlands, So that FX impact will carry on for future quarters.
Certainly we.
We are.
Optimistic on our performance and hope that the bonus component also carries on them, but that's not a given and you know the severance would also have been more of a one time event, albeit not unusual in the quarter. So therefore, it was not adjusted out and the increase in the rest of employee.
Is that also will carry on and be non comparable year on year SG&A ad.
As a reminder, if you'd like to ask a question press star one.
If you would like to go into queue for a follow up question. Please press star one.
Our next question comes from Michael Feniger from Bank of America.
Sure everyone. Thanks for for.
For taking my questions just to be clear are you not returning to thrive in person auctions, where we're hearing that some smaller.
Regional competitors are planning to open back up in person.
In the U S. I'm curious if you guys are not planning to do that.
In 2021, and just two to follow up I think we saw something about implementation at a higher buyer fees.
Any way you could help us quantify that if that is the case.
And how to think about that for the for the remaining three quarters of the impact that it could have on on rate.
So its share in here why don't I start on the fee question and then I will pass the operations comment over to Anne.
You know I think a couple of things I would say about let's see you know.
Fees are a journey around value that you provide to both sellers and buyers and you know a constant determination of whether that fee structure matches the value that you're providing them.
And so so clearly it is something that we do and we look at on a regular basis in.
In terms of assisting with modeling you know the you know we've done fee increases in the past I would say that the debt. This fee is not dissimilar to kind of the most recent the.
Uptick that we took them, but certainly we don't give forward.
Forward looking estimates of what this would would do to our results, but I would certainly look to past see increases as as indication of what this could do to our results.
And Michael It's it's Ann let me just pick it up from there. So the way we look it seems like the last fee conversations that we had with you guys and the market was more around the fee harmonization kind of bringing you know the last pieces of the iron Planet and Ritchie brothers integration on line.
But.
The way we're thinking about fees is you know at the end our cost continue to go up and we look at our competitive environment for us and judge ourselves against it.
It's a normal practice, that's what most industries most most people do.
On a regular basis call it in the world.
I'm just kind of review where are we where are we versus the market and you know is there.
How do we stack up is there opportunity or candidly that we need to go the other way.
So just expect us to be kind of a normal course of and evaluation cycle with no obvious.
Output, because it's really going to be kind of market driven if you will and that's what happened here. We saw small opportunities all kind of aligning more to general market practices with a backdrop of obviously as you've heard from everyone ever increasing cost base and us really dragging.
Really like it.
Incredible solutions for customers.
Increased marketing income.
<unk> digital solutions, and we're proud to do them the resulting in the exact output, which is a great pricing and the backdrop is.
Hum.
The you know obviously, our ability to cover some of that with this price increase.
And then for your first question can you just I want to make sure I answer it as intended can you just restate what is it what is it you're trying to understand about the operations in the losses.
Sure.
Just for you one moment please.
The online I'm curious if there will be with vaccinations, increasing in the U S for hearing some smaller players are having people back at auction houses.
In person I'm curious how you guys are viewing that right now as you guys have shifted during COVID-19 safety protocols, if there's any shifting back with with the reopening that's underway yeah, yeah, and so we have really gone to great lengths kudos to our operations team.
Led by John Kessler, our Chief operating officer to Deconstruct sales day, and really understand again with our true north being the best experience for sellers and then the best experience for buyers. So, let's just kind of get on this journey together so for sellers, what sellers really need by and large.
And the ability to easily drop their equipment. So that Ritchie brothers can take care of custody and control right with it up expected praised the marketed sell it and get them the most money.
And so we are very clear in those kpis and driving to do exactly that to get that equipment showcase the right way and kind of drive demand for for hires are even before COVID-19 70 per cent of the actual auction day transactions were happening on line anyway.
So we really dug deep into what is it the buyers in.
And first and foremost the new collection, so honestly size matters greatly and you saw us taking steps in combining regional events into kind of more mega events. If you will to give that selection for buyers.
Buyers all from the concepts and so there's two ways to gain that confidence right. One is in person and we've allowed even during COVID-19, albeit with scheduling and social distancing buyers for common kind of kick the tires of the equipment, they're making big bets.
We literally have.
Thousands of people come to Edmonton last week thousands of people come to Orlando.
In a COVID-19 safe environment at the same time, we're leaning heavily on digital tools right because again, even before COVID-19 70 per cent of the buyers didn't come. So we are doing videos I think you've heard US say last time, we talked from broke Youtube are with the number of video uploads, we did but we do our ironclad inspections.
The videos, we even launched a concierge walk through service of our yards so that for customers that wanted to.
See what was out there are very knowledgeable staff that the yard can take them through it. So it's very much with an eye towards that when it's safe to do so we're going to continue those practices are really driving what is it the buyers want.
And need in order to make their selections and what are sellers need them and we will we will take our cues from there but for the key activities that are happening, we're bringing them in all new digital formats, and allowing the physical to continue while the bidding is you know we went from 70 per cent to 100% online.
And before we take the next question we have an answer that since 2019. So the bids per lot sold since our Q1 2020, we're up 42% they were up about 50% since 19, because we were almost flat Q1.
2020, we had a very turbulent the startup COVID-19. If you will in the back half of Q1 of 2020.
Hopefully that answered your question Michael.
Your next question comes from Brian for Us from Raymond James.
Thanks, Good morning, everybody.
I was just hoping to get more color on the alliance formed with Gordon brothers, what can we expect to see from a partnership.
Hello, Brian It's Dan let me start and it wouldn't take US question. So we are very proud with our partnership with Gordon Brothers, we've partnered with them for some time, it's not new we did however, formalize it in our Australia region.
And there it's really targeted at the kind of a bankruptcy and insolvency space. So we're bringing the two best elements of the company's where Gordon brothers really focuses on bankruptcy and insolvency, we focus on the disposition of those assets when they come through we have formal.
Lives that partnership and are very very excited to bring that to life. Again. This is a tried and true partner for us all around the world. We work together in other regions and in Australia. We have just strengthen that partnership and kind of made it the basis of the way we go to market in that region.
The bankruptcy and insolvency space.
And your next question comes from Michael Feniger from Bank of America.
Hey, guys, sorry, just just a follow up I'm curious and if you guys can give any color on IMS inventory manage it like.
Anything you can provide from the beginning of the year in terms of fleet uptake cash.
For signing up any kpis around that.
So we can have an idea of how that that.
<unk> got initiatives and strategies are tracking.
Yeah. So Michael we are we're still committed to giving you guys kpis kind of on a regular basis and we're working on what those should be.
So really the way to think about I am mass is the underlying functionality and then kind of the usage. So in terms of usage, we're looking at a metric of unique monthly users.
And you know looking at that metric on a rolling basis looking at on an on on a year on year basis. So kind of on a rolling basis were up you know since our Q4 were up just a little bit over 10% in unique users Ah, but candidly the bigger store.
And I am asked since the acquisition of browse for really focusing on the fundamentals. So Ralph had pricing tools in the marketplace. There are the de facto leader in kind of third party agnostic pricing information Ritchie brothers, we went to great lengths and I wish from publish our valuation tool. So we spend a great.
Part of Q1 really bringing the methodologies together to ensure we are giving customers the very best for greatest the latest real time information.
At the same time, we've spoken before about the need to kind of get a point of view on so that for buyers are there was a transparency to equipment. So getting have been like a common way for customers to be able to understand the equipment and access it and spent a great deal of Q1, putting Ah.
Those plans in place so really as we take a look at IMS think about kind of the fundamentals of biomass.
The pricing the the kind of cloud solution. If you will the vent system on the one side and then on the other side, even while we get those fundamentals in place continuing to drive.
Unique users and monitoring how they're using the data.
And to inform us on what are the value added pieces to keep adding to the equation.
Yeah.
There are no further questions at this time I will turn the call back over to the presenters.
Okay.
Thank you so much for joining us I'm going to close it out because I believe severe dropped off the call dropped on him. So how about the Suzanne and I will thank everyone on behalf of some of your share in and I and the executive leadership team and once again.
Thank our entire team member base for driving an incredible quarter, but really being there for our customers and each other every step of the way.
Thank you so very much.
This concludes today's conference call. Thank you for participating you may now disconnect.
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Other than revenue.
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And for Us.
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