Q1 2021 Synchronoss Technologies Inc Earnings Call
[music].
Thank you from standby today's constraints.
And to begin shortly please continue to standby. Thank you for your patience.
Today's conference is scheduled to begin shortly piece can be and need to stand by.
And for your patience.
[music].
Good day, and thank you for standing by and welcome to the synchronous first quarter 2021 earnings call on.
At this time all participants are in a listen only mode.
And I'm, sorry, just speaker's presentation, there will be equal strength and answer session.
So as a question during the session you will need to press star one on your telephone.
Please be advised that today's conference is being recorded if you would.
Require any further assistance. Please press star zero and I would now like to hand, the conference over to you Hong Kim Investor Relations. Please go ahead.
Thank you operator, good afternoon, and welcome to synchronize its first quarter 2021 earnings Conference call with me on today's call are thinking doses, President and Chief Executive Officer, Jeff Miller, and Chief Financial Officer, David Clark before I turn the call over to Jeff and David I'd like to cover a few quick items this afternoon and synchrony.
<unk> issued a press release announcing its financial results. Our release is available on the company's website at Syncrude OS Dot Com. This call is being broadcast live over the Internet for all interested parties and the webcast will be archived on the Investor Relations page of the company's website.
Want to remind everyone that on today's call management will discuss certain factors that are likely to influence the business going forward and.
Any factors discussed today that are not historical particularly comments regarding our long term prospects and market opportunities could be considered forward looking statements. These forward looking statements may include comments about the company's plans and expectations of future performance forward looking statements are subject to a <unk>.
Number of risks and uncertainties, which could cause actual results to differ materially we encourage all of our listeners to review our SEC filings, including our most recent 10-K and 10-Q for a complete description of these risks.
Our statements on this call are made as of today May 10, 2021, and the company undertakes no obligation to revise or public or publicly update any of the forward looking statements contained herein.
As a result of new information future events changes and expectations or otherwise. Additionally throughout this call we will be discussing certain non-GAAP financial measures such as adjusted EBITDA adjusted EBITDA does not necessarily equate to cat generated by operations as it does not account for such items as deferred revenue.
Or the capitalization of software development today's earnings release and the related current report on form 8-K describe the differences between our non-GAAP and GAAP reporting and present a reconciliation between the two for the periods reported in <unk> and their release with that said on the I'll turn the call over to Jeff.
Thanks, Julie and good afternoon, everyone.
We appreciate you joining us today and thank you for your continued interest and synchronous.
I am pleased to report the synchronous delivered solid first quarter results, including first quarter revenue of $65 $5 million and adjusted EBITDA of $5 5 million or.
215% increase year over year.
Both revenue and adjusted EBITDA beat our internal targets, giving us confidence to raise our adjusted EBITDA guidance for the full year 2021.
Recurring revenue for the quarter was 86% from total revenue, which is the highest we've seen and over a year.
We believe this metric combined with the fact that the vast majority of our revenue.
And under multiyear contracts.
Significant stability and predictability to our business model.
I'd like to thank and congratulate the employees and synchronous for all their hard work and getting 2021 off to a good start.
Some other highlights and the quarter, including the signing of several new customer contracts, including two significant deals and southeast Asia.
And for cloud and one for messaging.
You'll also see continued growth and the existing cloud customer subscriber base.
We continued to deliver new product innovations that led to the release of several new products, which we believe will help drive revenue growth.
Before we get into the details of the quarter.
Like to address the recent news about the dissolution of CCM.
Or the common carrier messaging initiative and the U S that has been and various reduce reports.
You should recall that <unk> was a joint venture created by the three largest U S carriers to provide its members a universal Rcs messaging platform and a shared go to market approach to.
And to delivered advanced messaging experiences across all the major carriers.
Recently as has been reported and the news.
<unk> members have decided to and the joint venture and pursue their rcs deployments individually.
We can assure you.
But based on the commercial agreement that we have in place with CCM on.
We do not expect debt. This will have any negative impact on synchronous just financial results in 2021.
In fact.
The transition from SMS.
Rcs messaging has the potential to disrupt the current OTT messaging paradigm.
And enable carriers to recapture market share and revenue.
While at the same time generating a return on the billions that theyre investing and <unk> infrastructure.
We believe the U S carriers are still committed to bring Rcs do U S wireless users and <unk>.
Launching Rcs based networks in 2021.
And synchronous just prepared to make that happen.
We believe the Rcs rollout and the U S will now mirrored the model that we've implemented and Japan.
And with each carrier offering its own unique go to market approach.
Leveraging on synchronous and success in Japan, we are well positioned to provide U S carriers are compelling Rcs solution and we hope to share an update on our progress and the coming months.
Now back to the first quarter results.
And cloud, we made solid progress by signing new deals while at the same time accelerating subscriber growth with our existing carrier customers.
We signed an important deal with telecom Sigma.
Arm of Telecom, Indonesia Group, Inc.
And these guys stayed on telecommunications conglomerate.
With this relationship.
Come Sigma will provide students with the synchronous personal cloud solution at 25 universities, allowing for secure cloud access to store share and transfer academic documents with their professors and fellow students.
Students will also have the option to continue with a paid version.
After they graduate.
And also outside of being an important relationship with.
And with one of the largest carriers in the country of over 270 million people.
And this win along with our new agreement with Allstate protection plans.
I liked the different use cases available to carriers and other service providers.
And they look to monetize their subscriber base and.
And for synchronous.
These new use cases increased the addressable market for our cloud platform.
Speaking of Allstate protection plans I'm pleased to say that we've completed our work on their square trade cloud offering and have delivered it to them for user acceptance testing.
We expect it to subscriber offering will be deployed shortly.
Which should help drive additional cloud revenue and the back half of the year.
During the quarter, we continued to see an acceleration and our AT&T subscriber base.
And I'm pleased to say that that momentum has continued and the second quarter not only because of new phone launches, but also because more foot traffic and the AT&T retail stores.
Also during the quarter.
Verizon launched a significant advertising campaign.
They're synchronous delivered unlimited cloud storage offering.
And we're pleased to see the growth and the uptake of that product as a result.
We believe our future subscriber growth with Verizon will benefit as a result.
And more broadly, we anticipate double digit subscriber growth.
Ross the global base of synchronous cloud customers this year.
Turning the messaging.
And the first quarter, we had a major new customer wins and deploy Rcs and another country in Asia.
This is another important milestone for synchronous as it gives us access to important messaging market with over 100 million subscribers.
Additionally, this will be the first commercial deployment.
It leverages the entirety of our expanded messaging IP.
And do a complete end to end synchronous solution and.
Including our own map or messaging as a platform.
And our own messaging marketplace solution.
Which is our brands facing monetization platform that enables both carriers and brands to <unk>.
Capitalize on the business messaging and opportunity.
This new contract.
Combined with our expanded IP.
Further strengthens our lead and providing and advanced messaging solution and it helps carriers protect and grow their messaging revenue streams.
We won this following a rigorous selection process.
And we've distinguished ourselves based on our established leadership position and global Rcs deployments.
Our implementation is now underway.
And we're on the process and deploying the solution through a large local systems integrator.
This win and provides us the ability to further expand our presence and the APAC and in particular and southeast Asia market as well as and improves our messaging profitability due to the increased use of synchronous on IP.
And core messaging, we recently completed the migration of over 4 million British Telecom residential broadband users to our E mail platform and.
And I'm happy to report that this is being met with great success as.
As both our iOS and Android emailed user apps have ratings with greater than four five on a five point scale.
This puts us in good standing with this large and influential European carrier and will also utilize our cloud platform. In addition to our messaging platform.
Also on Europe.
Signed multiple agreements with telecom Italia mobile or Tim.
And included the upgrade of their late to our latest messaging platform and.
On migration from an on premise solution to a private cloud based solution.
And added functionality and the form of anti virus and anti spam services to their subscribers.
We also kicked off the email migration process on behalf of <unk> This quarter.
<unk> core message and customer that we signed earlier in the year and discussed on our last call.
More broadly we believe that there will be ongoing competitive replacement opportunities in the core messaging market and <unk>.
We feel great about our ability to win on those just as we did with <unk> last quarter.
And with Bell, Canada, and proxy must last year.
While often overlooked.
Our core messaging business remains healthy.
<unk> and profitable.
And as highlighted by the BT App ratings.
Got an excellent feedback from our customers and subscribers.
Moving on to digital business.
The investments, we've made and product innovation and improved operational efficiencies and our digital business are paying dividends.
Product wise, we continue to innovate on our total network management product suite, we formerly referred to this suite of products is the diversified portfolio.
And we had two major releases for invoice claims management.
As well as launches of new module and our special suite called Special office.
Special office extends the access to our leading network intelligence and planning tool to a broader user base across the enterprise.
Providing real time insight to network data via user friendly interfaces.
It allows resources and the field as well as and the office to manage the network simultaneously via a single application.
Also under the total network management umbrella.
We launched our blockchain initiative with a tier one mobile provider.
And through our partnership with stage management.
Our solution Leverages, our combined assets to revolutionize how carriers do business with each other for interconnection services.
Driving operational efficiencies that translate to bottom line impact for our customers.
On the new business front, we signed new deals with a major Canadian communications provider for special.
And a large U S regional communications provider for financial analytics, both during the quarter expanding our reach and both of these total network management product categories.
Operationally, we continue to streamline our cost structure and.
And this quarter, we managed to find additional efficiencies and our cloud hosting platform, which contributed to improved gross margin performance.
So in summary, I am pleased with our first quarter results.
We closed several new meaningful customer contracts during the quarter.
So on continued growth and our cloud subscriber base.
And delivered on some significant product milestones.
I'm proud of the synchronous team's hard work as.
As we continue to be driven by delivery and execution for our customers disc.
Disciplined cost management.
<unk> product innovation.
And as you heard today, new customer acquisitions.
We look forward to continuing to execute on our strategy of focused and profitable growth and 2021.
Lastly.
And I wanted to make a comment on our work to deliver a sustainable capital structure for synchronous.
It is top of mind for almost every investor we talk to and on <unk>.
On a reassuring.
That is also one of the most important priorities of our senior management team as well and we are making progress and finding a sustainable solution and we look forward to updating investors in the coming months.
With that I.
I'll turn the call over to David to review, the financial results and more detail as well as provide and update to our financial outlook.
David.
Thanks, Jeff and thank you everyone for joining us and I will review, our first quarter 2021 results in more detail and update our guidance for the full year of 2021.
Before I start I'll remind listeners that because of the five year extension of our cloud contract with Verizon and executed in July of 2020, we had to extend the recognition of noncash deferred revenue across the term of the new contract as required by ASC 606.
Which negatively impacts our Q1 2021 comparable results by approximately $5 million.
This also has an equal impact on EBITDA on the quarter.
I will be referring to adjusted results and account for this treatment throughout this call and we believe it more accurately reflects the true progress we have made year over year.
Now on to results.
Total revenue on the first quarter was $65 $5 million down 15% from $77 $1 million and the first quarter of 2020 and down 6% from $69 4 million and the fourth quarter.
And as I, just mentioned and the year over year results were impacted by the deferral of non cash revenue due to our Verizon contract renewal.
In addition recall we had large licensed professional services revenue from <unk> in the first quarter of 2020, which did not repeat this year.
As Jeff mentioned in his prepared remarks, despite the ending of the <unk> joint venture. There is a shared urgency by the U S carriers to launch Rcs based networks in 2021, and we believe synchronous is uniquely positioned to provide a compelling solution.
We believe the Rcs business model and the U S could be similar to our implementation and Japan with each carrier offerings on Rcs deployment.
At present, we are and the process of talking to the U S carriers individually and will provide everyone with an update on our progress in the coming months.
Moving on recurring revenue came in at 86% of total revenues quarter versus 82% last year.
This metric combined with the fact that the vast majority of our revenue was under multi year contracts brings significant predictability and.
Stability to our business model.
We are encouraged by our revenue results and the first quarter and we believe synchronous and good position deliver steady sequential revenue growth for the remainder of the year.
Adjusted EBITDA was $5 5 million, a 215% increase from the first quarter of 2020.
EBITDA was $1 $8 million, despite being negatively impacted by the Verizon revenue deferral on.
Solid EBITDA performance and the result of continuing cost management operational efficiency initiatives throughout the organization and upside and total revenue relative to our own internal forecast.
I would add that we also benefited from one time favorable expense item and reductions that totaled approximately $1 million and the quarter.
Total costs and expenses were $74 $5 million down almost $20 million or 21% from the first quarter of 2020.
This is largely a result of a $55 million target cost reduction. We began 2020, we achieved $45 million and annual cost savings in 2020, and continued cost management and operational efficiency.
And just the initiatives in 2021, as evidenced by the EBITDA upside and improving gross profit margin.
Adjusted gross profit and the quarter was $37 4 million and.
And adjusted gross profit margin was 57% compared with $42 $4 million and 55% and the first quarter of 2020.
Improvements to adjusted gross margin was driven by lower cost of goods sold and lower expenses due to cost management and operational efficiency initiatives. We are pleased with the gross profit margin expansion. We saw on the first quarter and believe we continue to strength throughout the remainder of the year.
Cloud revenue of $48 $9 million was comparable to $39 $2 million reported and the fourth quarter and down from $41 million or 5% from the first quarter of 2020.
Adjusting for the extension of noncash deferred revenue and following a five year renewal of our contract with Verizon cloud revenue would have been up 7% year over year.
This year over year increase and adjusted revenue was driven primarily by cloud subscriber growth as our carrier partners continue to add new customers onto our platform.
Messenger day revenue and first quarter was $13 6 million.
Down 6% from the fourth quarter and down 42% year over year decline and messaging revenue from Q4 is largely result of Japanese carrier block license purchases and the fourth quarter that did not repeat and this quarter and we anticipate more block purchases from these carriers and subscriber growth continues but those will likely happen and the second half of 2021.
And decline year over year was due to significant license and professional revenue from <unk> and the first quarter of 2020, which did not repeat this year.
And as a reminder, based on the commercial agreement we have with CCM.
And I expect any negative impact to our financial results and 2021 due to the dissolution of the joint venture.
Digital revenue was $14 million was down 17% from the fourth quarter, but up slightly from $12 8 million and the first quarter of 2020. The sequential decrease was largely a function of seasonal decline on license revenue and the completion of a large professional services agreement.
Yes.
The product improvements and operating operational efficiencies, we have made to digital has tightened its value proposition and we believe it will continue to be a profit contributor synchronous in 2020 one.
Cash and cash equivalents totaled $29 8 million down $3 $8 million from our 2020 year and balance of $33 $6 million largely as a result of changes in working capital.
As Jeff mentioned refinancing of our preferred stock with a cost effective permanent long term capital structure is a top priority for synchronous we are making progress on potential solutions and hope to have an update in the coming months.
Turning to guidance, we are pleased you're raising our adjusted EBITDA guidance for the full year from a range of 30% to $35 million to a range of $32 million to $37 million.
Which would represent EBITDA growth year over year of 15% to 33% respectively.
We are leaving revenue guidance unchanged, but believe total revenue should improve sequentially going forward with the acceleration in the back half of the year.
Lastly on Investor Relations front, we will be participating in the upcoming Oppenheimer conference on Wednesday, and at the Needham Conference on May 19th if you're interested in participating either event, please schedule and visit with your Oppenheimer or need and representative.
And with that operator, let's open the call for questions.
Okay.
Yes.
Okay and then thank you.
And you May press Star one on your telephone keypad.
Okay.
Our next question comes from the line of Mike Walkley of kind of claim your line is open.
Great. Thanks for taking my question and congrats on the strong results and cost discipline.
Yes Catherine.
First question for you just focusing on debt <unk> and your strong relationships with AT&T and Verizon can you maybe talk about opportunities for synchronous as it relates to Rcs and the <unk>.
JV breaking up and also this open new opportunities for sick and ask let's say like a U S cellular or other U S carriers.
Yes, good afternoon, Mike Thanks for joining and.
And would say that you are heading down the right path on both fronts first off.
As you know we've worked throughout 2020.
And preparation for the readiness of and Rcs based platform and the U S and we did so really all three carriers in the U S.
Most progress on the testing and implementation had been made.
By AT&T, and Verizon and as such that puts them in a position where.
And they have and opportunity to launch publicly during the year and we think as a result of the progress that some debate and successful relationship that we've had working through them as part of the <unk> joint venture it does position us well to be of service to them as they implement their independent plans.
For Rcs based messaging.
And then to your point.
By leveraging our platform that's still not unlike what we've done and Japan is accessible from multiple users from multiple carriers.
Does create an opportunity for us to invite a broader audience of participation and.
And the leveraging of U S based platform.
And synchronous and are positioned to put in place nothing.
And nothing to say on that any further today, but it certainly is an opportunity.
Great. Thanks, and maybe just just to follow up on that for you or David just with your reiteration of guidance and.
See CMI breakup does the guidance assume you and some of these individual carriers and Theres. Some revenue with the launches are and be licenses later in the year or is that not really and this year's guidance to become let's just try to flush that out a little margin.
Okay.
Our weighted.
David if you want to address it or I will.
Alright, Jeff go ahead.
Yeah, I would say that at this point and time.
Guidance reflects the same revenue stream that we had anticipated effectively from CMI and no additional new business.
Got it thanks.
And David question for me just on the cost controls you guys continue to do a good job better gross margin and cost coming out are you almost at the 55 run rate now and we should expect kind of steady opex with maybe slightly improving gross margin going forward or how should we think about any other cost impact coming through the model this year.
I think if youre looking at.
And at 50 prior year, referring to quarterly.
Yes.
Okay.
I think the.
The run rate.
And may not be down that far for the remainder of the year.
I think youre going to see is running kind of at that $60 million Mark.
For the rest of the year and we can take you through.
We can go through your model and later too.
Okay.
And all we can conclude and efficiencies obviously.
Gotcha.
So far youre close to getting that 55, and total cost savings achieved so kind of all right.
And five was the run rate no, yes, absolutely yes.
And that's in our interest.
And some more class action and the first quarter I got it yeah, yeah. So just to connect the dots for others who are listening.
We had communicated that and annualized basis of $55 million of savings in 2021 over 2020 cost performance and.
And yes, our <unk>.
<unk> revenue stream.
<unk> expense stream is now beginning to reflect debt we are close to completion on all of that.
Okay and last question for you, Jeff and I'll just pass it on.
And then for a short time now one.
And then some nice deals this quarter as you look at your pipeline for the rest of the call. It the calendar year. What are what are some areas that you're most excited about in terms of pipeline development since you've taken over.
Well I'll say it sort of comes in two areas number one as you're seeing this quarter, we had a number of nice new deals set up debt.
Debt were closed in the quarter, but if not equal or greater encouragement was the fact that we continue to see.
Our rapid and solid growth across our base of cloud subscribers and the reason I continue to be encouraged by that of course is because that infrastructure is now in place and it has the ability without additional significant additional cost to contribute to our growth in year.
There are other opportunities that we see and messaging and and cloud and and digital that we expect to expand and announced throughout the course of this year. However, given the revenue models that we have and most of it being recurring revenue.
Revenue in year impact would be relatively small.
Gotcha.
Makes sense I'll pass it on and congrats on the quarter.
Thanks, Mike.
Next question comes from the line of Jon Hickman from London and Bank. Your line is open.
Hi.
I just wanted to follow up on the CCM on anything so are you guaranteed some minimum payments this year, even though.
Partnerships like our joint ventures.
<unk>.
Yes, yes.
Great job.
We have a structure in place where there were commitments minimum commitments as part of our commercial relationship with the joint venture.
That we had when we made that in Q4 of 2019.
And what we're making sure is that we did not have any revenue expectations. In 2021 that went beyond the commitments that we already had in place with the joint venture and <unk>.
And as such it will not have any as we said negative impact at all on our fiscal year performance this year and.
And.
As Mike referenced there could be some opportunities for us to improve upon that situation as we strike new relationships independently with the operators and the U S.
Okay I have one more question about this so I thought one of the key features of this platform would be that.
Since everybody would be using the same.
I guess I don't know platform technology.
And that that would make it easier for brands and advertisers to utilize.
On a common platform and hit.
Designing their ads and there.
Whatever their campaigns.
On one unified price and that would make it easier for everybody and I take it thats not going to be the case going forward.
AT&T and Verizon and whoever will do their own thing now.
Well, yes.
Sure two elements to that.
First is yes, the vision going in and I don't want to speak on behalf of the joint venture, but essentially what they communicated as they launch.
Is the intent to bring together the collective power of some 300 million subscribers and the United States and to make them available to one community of brands and advertisers.
But that opportunity really has not gone away and total however, the reconstruction for brand might get a little more complex.
We still believe that it is important for.
The collective.
<unk> of Rcs, and the United States to leverage the entirety of the subscriber base.
But what will change from what was done and the joint venture is that there might be a unique implementation with certain brands and a certain way by a specific carrier if they have those brands to leverage and each of the U S carriers as you know have their own unique set of relationships and some cases with brands.
And then there are other brands that are national or international brands that they might want to leverage collectively and I would not be surprised that over time as this rcs community and critical mass of users builds that there will be a means by which to aggregate.
The total population together, even if they are on separate marketing go to market implementations.
Okay.
So.
Competition wise.
Do you see I mean, I know, there's like wechat and cause it mine.
But those are in separate countries is there anything going on and the United States.
Or Europe.
Compete with you.
Here was.
Certainly and the OTT.
OTT and the OTT messaging marketplace in other words, there are a wide variety of messaging applications that.
Do I'll call it represent some form of messaging and competition for subscribers and their attention.
<unk>.
Instagram Whatsapp.
Facebook and so forth and in that regard.
Line is the Japanese example, that you cited wechat and the Chinese example.
None of them have gained that kind of.
Critical mass and the distinction that you.
Carriers have.
And the distinction that is still there opportunity to capitalize on.
And there's a bit of a higher level of consumer trust that seems to exist among.
Among the mobile operators and the United States and their relationship with subscribers in terms of how they treat and communicate transparently how their data is treated.
And how they protect the messages and the integrity of those messages and just to provide a simple example in.
And Japan.
The collection of operators the consortium that we work with have differentiated themselves from line, which is their OTT competitor and they have attracted the financial institutions as we've reported on prior earnings calls to utilize.
And plus message service as their means for communication out to their constituents, so and as the financial community and everyone on.
Understands the importance of critical security related to financial communications that is what.
They are using the plus message service and its distinguishing themselves from what.
T line provider is doing so on Japan.
Separating themselves as the trusted messaging provider.
And I suspect a similar approach will be taken in the United States.
Okay.
And then I have a question for Jeff.
So do you have a target gross margin and as you.
Get towards the end of the year.
I think you've probably met to say David.
And Im sorry, Yeah, Yeah, I think David and my remarks.
Sorry, I think I want and remarks, I indicated that we were targeting going up as the year progressed. So that we're at 57% debt would imply maybe.
Getting into very low sixties.
Can we achieve our honestly to deliver our revenue and sheet and continue to maintain costs.
Okay.
Thank you.
<unk>.
Thank you John.
Thanks, John.
Next question comes from the line of Mike Latimore of Northland capital.
Hi, guys.
Consult on from Mike.
Got it on a quarter.
I believe you are.
And more tightly on integrating messaging and.
Cloud software.
But it gives me on <unk>.
What's the status on deck.
Between the platforms switching.
And what Youre, saying here.
Yes.
Good day.
Most of the work that we're doing actually deliver solutions that are largely independent.
For messaging, whether it's core E mail.
Or even advanced Rcs messaging and data cloud.
Certainly as potential we see over time.
And that.
Rcs messaging, which is a rich experience on web like experienced from messaging could incorporate and drag and content that could be accessible from the cloud, but we have no new product updates to share on that today.
Alright, and then.
And.
Thanks.
Revenue for Us as you expect from <unk>.
GAAP and ECS was last year.
I'm, sorry could you repeat the question on quite get that.
And you ask the revenue sources from Japan, this year versus last year.
Yes.
Okay. I mean, I think we just I just indicated in my remarks debt.
We expect continued subscriber growth.
On the platform in Japan, and therefore are expecting some license revenue.
Related to messaging that come through in Japan, and the latter part of this year.
And I would characterize that as being a similar expectation.
2020 and.
In general, but as David said, mostly second half expectation.
Alright, thank you.
Thank you.
Next question comes from Richard Baldry from Roth capital.
And Richard.
Okay.
Can't hear Richard.
And balls are you there.
Hello, Mr. <unk> Your line is open.
Hmm.
Okay.
Yes.
Hello, you mean and.
Nick your line by pressing star snakes.
Yeah.
It sounds like we lost Richard and some capacity or are there any questions.
I am showing no further questions at this time you may <unk>.
<unk>.
Yes.
Well, let me just thank everyone for joining us today greatly appreciate you investing time and synchronous.
We again are pleased with the first quarter. It was a solid start to 2021 and we look forward to speaking with you again, thank you and have a great afternoon.
Thank you.
And this concludes today's conference call. Thank you for participating you may now disconnect.
[music].
And.
[music].
And.
And.
And.
And on.
Okay.
And.
[music].
[music].
[music].
[music].