Q1 2022 Ooma Inc Earnings Call
Okay.
Ladies and gentlemen, thank you for standing by and walk him to the <unk>, Inc. First quarter fiscal 'twenty 'twenty 2 financial results conference call.
This time all participants are in a listen only mode. Later, we'll conduct a question and answer session and instructions will follow at that time.
And he wants you to acquire assistance during the conference. Please press Star zero.
I would now like to turn the conference over to your host Mr. Matthew Robison. Please go ahead.
Thanks, Alexander and good day, everyone and welcome to the first quarter of fiscal year, 2020.2 earnings calls and the Inc. My name is Matt Robison, who is director of IR and corporate development on the call with me today are on the CEO, Eric Stang, and CFO Robin and ruler.
After the market closed today on my issued its first quarter fiscal year, 2020.2 earnings press release via business wire.
And there's also available on the company's website and the dot com.
This call is being webcast live and is accessible from a link on the events and presentations page of the Investor Relations section of our website.
And we will be active for replay of this call for at least 1 year and telephonic replay will also be available for a week. Starting this evening about 8 P M Eastern time and selling information for it is included in today's press release.
Today's presentation and our executives will make forward looking statements within the meaning of the federal Securities laws forward looking statements generally relate to future events or future financial or operating performance.
Our expectations and beliefs regarding these matters may not materialize and actual results and financial periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.
These risks include those set forth and the press release, we issued earlier today and those risks are more fully described in our filings with the Securities and Exchange Commission for.
Forward looking statements in this presentation are based on information available to us.
And as of the date hereof, and we disclaim any obligation to obtain.
Any forward looking statements, except as required by law.
Please note that other than revenue or as otherwise stated the financial measures to be disclosed on this call will be on a non-GAAP basis the non.
Non-GAAP financial measures are not intended to be considered and isolation or as a substitute for results prepared in accordance with GAAP.
A discussion of why we present non-GAAP financial measures and a reconciliation of the non-GAAP financial measures discussed on this call to the most directly comparable GAAP financial measures on <unk>.
<unk> and our earnings press release, which is available on our website on this call. We will give guidance for second quarter and full year fiscal 2020.2 on and non-GAAP basis. Also in addition to our press release and 8-K filing the overview page and events and presentations page and the investors section of our website as well as the results page of the financial Info section of our website.
Include links to information about costs and expenses not included in our non-GAAP values and key metrics of our course subscription businesses. These are titled supplemental financial disclosure, 1 and supplemental financial disclosure..2. Additionally, our investor presentation slides include GAAP to non-GAAP reconciliation that also provides resolution of GAAP expenses that are excluded for.
Non-GAAP metrics now I will handle handle the call over to CEO, Eric Stang.
Thanks, Matt.
Hi, everyone and welcome to <unk> Q1 fiscal year, 2020.2 earnings call and thanks for joining us today I'm excited to share with you. The strong start we've made to this year and I look forward to updating you on our key growth initiatives and outlook.
For fiscal Q1, our results again outpaced our guidance with revenue of $45.6 million and non-GAAP net income of $2.8 million on.
Q1 revenues grew 13% year over year.
Apprised of 24% year over year growth and business revenue and 5% year over year growth and residential revenue.
We also once again generated positive cash flow from operations, while investing in new growth initiatives, including international expansion.
Across our business I believe we executed well and we were on a good trajectory to realize our plans for this year.
You may recall, I mentioned last quarter that 76% of small businesses defined as less than 100 employees say they have yet to invest and IP based communications solutions.
<unk> office is our uniquely designed solution for such small business customers, who desire advanced features but do not have and I T department to implement them.
We believe it from office brings productivity improvements and savings that drive compelling value.
Our strategy is to target this vast market opportunity, primarily by scaling our sales and marketing programs.
Adding features that drive increased customer adoption and raised our revenue per user.
And by expanding internationally.
On the first of these scaling our sales and marketing programs.
We executed well in Q1 and established several important new reseller relationships to support future channel sales growth.
For the quarter sales through channel resellers contributed approximately 40% of business sales.
On the marketing front, we increased our intent based marketing and enhanced the.
And the targeting of our marketing programs direct sales, particularly ecommerce sales performed well and Q1.
Some of our more notable and my office new customer wins included a 67 user implementation for a Multilocation restaurant group and a 55 user implementation for a medical group.
We also continued expansion with a large national brand through the addition of over 150 new locations.
Scaling our sales and marketing programs will continue to be a priority for us this year.
We also launched exciting new features and Q1 to support our strategy to serve more small business customers and increase revenue per user.
Most notably we just recently added 2 new features to our Ummah office pro tier of service.
The first we call color info search.
This feature enables color information from CRM systems, such as sales for Salesforce hub spot and Soho and from web sites, such as Linkedin, Google and Facebook.
And 2 pop up automatically and our desktop app on a call comes in.
The second feature is integration with Google Workspace, specifically and add on in the Google Workspace marketplace, which enables calendar integration for example to schedule and I'm, a video meeting and automatically populate meeting details and Google calendar.
Further integration with Google contacts the chrome browser and more are planned to follow along with similar capabilities for integration with Microsoft 365.
These new developments will improve productivity for small businesses and further grow adoption of our office pro higher tier of service and.
And Q1, approximately 43% of new office users stepped up to a pro tier of service at $5 more per month.
Internationally as we discussed last quarter, we are expanding this year to more than a dozen new countries and plan to capitalize on the opportunity to serve our largest customer in these new locations.
And made good progress on this goal during Q1 and now are serving or have the capability to serve users in 9 western European countries.
And Q2, we expect to launch and more European countries and at least 1 country and Asia.
We'll out of additional users with our largest customer has just recently started and we expect significant progress to occur during Q2.
In addition to our strategy to target the vast market opportunity afforded by small businesses that have yet to move to the cloud.
We also have a second strategy underway to serve larger businesses, which have custom needs are and verticals, where we believe we can bring unique value.
To this and we continued our investment in Houma enterprise during Q1 and are excited about winning a new opportunity with a reseller, which we believe will lead near term to the addition of more than a thousand new users.
We also secured several new customer wins and 1 of the key verticals we are targeting.
The scaled up sales efforts for our direct routing for Microsoft teams solution.
And we implemented direct routing for teams for our initial customers during the quarter.
We intend to continue to invest and whom enterprise this year to develop new opportunities.
Our longer term vision extends to providing a more complete infrastructure solutions for small businesses and distributed enterprises and.
As a start to this vision, we launched <unk> connect last year to provide business wireless Internet services, both for Internet back on and for primary Internet use.
Since the launch we've worked to learn about the connectivity needs of small businesses and enhance our value proposition.
And Q1, we extended our capabilities to include use of the T Mobile network.
To enable both user and Uber controlled speed options.
To make our unique continuous voice technology available to all of them and connect customers.
And to introduce unlimited data plans.
We're excited about the potential to provide increasingly extensive and integrated solutions that bring more value to small business customers.
Finally, I'm pleased to report our residential business also performed well and increased in revenue in line with our expectations.
During Q1, we expanded our retail distribution alumina tello.
We also extended the power of our residential mobile App to include cellular mode, calling.
This mood uses the mobile devices voice network to provide a new option for completing calls.
Many of our residential customers take advantage of our very low cost international calling rates to make calls overseas. While on the go for example, while driving on the highway and.
And such circumstances cellular mode can enable more reliable calls.
We continue to see a strong outlook for our residential business.
So overall, we are excited to be off to a good start on the year and we are looking forward to driving further growth and the quarters ahead.
I will now turn the call over to Ravi to discuss our results and outlook in more detail and then return with some closing remarks.
Thank you Eric and good afternoon, everyone.
With that review of our financial results for the first quarter and then provide our outlook for the second quarter and full year fiscal 'twenty 2.
We delivered strong financial results achieving record revenues of $45.6 million, which was above the high end of our previously issued guidance range of 44 million $44.8 million.
On a year over year services total revenue grew 13% driven by this pent up on my business.
On my business now accounts for 47% of total revenue compared to 43% and the priority and block.
Net income for the fourth quarter and fiscal 2002 was $2.8 million and above our previously issued guidance range of $1.8 million for $2.4 million.
Our strong revenue growth and profitability demonstrates the strength of our large and diversified customer base.
As well as our solid execution.
Now some details on our Q1 revenue result.
Our overall subscription and services revenue grew 12% on a year over year basin for $42 million.
Well, Matt business subsequent to <unk> and services revenue growing 22% year over year and 5% sequentially from Q4.
Our residential subscription and services revenue for Q1 grew 4% year over year, which is an improvement from the 3% growth we saw in the fourth Blackrock lofty.
Subscription and services revenue as a percentage of total revenue was 92% compared to 93% for the priority and closet.
During the first quarter with all other product and other revenue increased 34% with FIFA and $6 million and compared to $2.7 million for the same period last year.
This strong growth and product and other revenue was driven by increased and our IP for them as well as higher activation revenue from business.
Now some details on key customer metrics.
We ended the first quarter with 1.083 million core users up from 1.049 million and the end of the first quarter last year.
But growth and business users through various sales and marketing activities.
I'm excited to report, we now have over 281000 and business users and 19% increase on a year over year.
Our average monthly subscription and services revenue political users on <unk> increased 10% to $12.60, S and up from $11.56 and the.
Friday and quadrant due to an increasing mix of business users, including Hyatt audible office pro users.
Accordingly, our business outlook is now approximately $24.
We are pleased with the growth of our annual exit recurring revenue, which has now increased to a record and in $65 million.
Growing 13% year over year.
Our net dollar subscription retention rate for the first quarter improved to 98% at 2 point improvement on a sequential basis.
Now some color on gross margins.
Fiction and services gross margin for the first quarter was 71, 3% and increase of 70 basis points year over year and down 60 basis points.
Actually primarily due to investments being made for future growth.
Product and other gross margin for the first quarter was negative 41% compared to negative 39% for the same can get last year and improved sequentially from the negative 58% and Q4.
Our overall gross margins for 62% and for the quarter compared to 63% and the prior year period, driven by a higher proportion of product revenue and the quarter.
Now some details on other operating expenses.
Operating expenses for the first quarter for fiscal 'twenty, 2 for $25.8 million.
11% increase on and get over here.
Sales and marketing expenses were $13.3 million.
<unk> thousand 9% total revenue this 13% year over year increase was driven by higher marketing and channel development activity.
And that business.
Research and development expenses were $8.2 million on 18% of total revenue. This is an increase of 6% on a year over year, driven by investments and the new product and features and <unk>.
Moving launching our services and a number on international countries starting.
Starting first with our largest customer.
G&A expenses increased to $4.3 million on.
At 9% October revenue.
<unk> $3.8 million for the prior year quarter due to higher personnel related costs.
Net income for the first quarter was $2.8 million, resulting in diluted earnings per share of 11.
Comparable to the 11 cents EPS for the product here.
Adjusted EBITDA earnings for the first quarter improved with people and $5 million on.
On 8% of total revenue as compared to $3 million and the prior year quarter.
We ended Q1 with cash and investments of 49 million on it and.
On page $23.3 million and up Q1 and the prior year.
Even though the first quarter had a number of annual payment, we generated approximately $400000 and cash from operations, which was a significant improvement from the $2.8 billion of cash used in operations and the pride here at Barclays.
This was our fourth consecutive quarter of positive cash flow from operations.
On the bus net of front, we ended the first quarter with 980 employees and contractors up.
From 799, and the same time Matthew.
Now I will provide guidance for second quarter and full year fiscal 'twenty 2.
Again, our guidance is non-GAAP and has been adjusted for expenses, such as stock based compensation and amortization of intangible.
We expect total revenue for the second quarter of fiscal 'twenty, 2 to be and the range of 46 million for.
For the 6.8 million.
We expect second quarter non-GAAP net income to be and the range of $1.9 million for $2.4 million.
Non-GAAP diluted EPS is expected to be between <unk> and Tencent.
We have assumed 20, threep and 4 million weighted average basic shares and 24 and 6 million weighted average diluted shares outstanding for.
Full year fiscal 'twenty 2 guidance.
We expect total revenue for fiscal 'twenty, 2 to be and the range of 185 million and and $87 million and increase from the previously issued guidance range of 2.
<unk> 5 million.
185 and $5 million.
We believe we are tracking well towards our objective of business revenue crossing 50% of total revenue by the end of this fiscal year.
We expect non-GAAP net income for fiscal 'twenty to debate and the range of $7.5 million for $9.5 million versus our previously issued guidance range explained and $5 million to $8.5 million.
Non-GAAP diluted EPS is expected to be and the range of 30, <unk> and 38 and.
We have assumed approximately $23.5 million weighted average basic shares and 25 million weighted average diluted shares outstanding for fiscal 'twenty 2.
From a cash flow perspective, we expect to continue to generate positive cash from operations for the full year fiscal 'twenty 2.
With that I'll pass it back to Eric for some closing remarks.
Thank you Ravi.
Our priorities for this year remain as we outlined just.
Just a quarter ago, namely to increase our sales and marketing both for direct and through channel resellers.
To add new features to home office that can build our revenue per user.
To focus on Microsoft teams direct routing feature customization and select verticals to drive growth for boom and enterprise.
To evolve our ummah connect and image managed Wi Fi solutions and.
And to expand geographically to serve users and more than a dozen new countries.
We believe these actions will allow us to capture the large market opportunity before us and drive significant expansion of our business. We're excited about the opportunities ahead.
Thank you and a moment will take your questions and then at the very and after the question and answer session Robbie and I will have some final remarks.
Operator.
Thank you at this time I would like to inform everyone in order to ask a question. Please press star 1 on your telephone keypad again that is star 1 to ask a question.
We have your first question from Mike Latimore with Northland Capital. Your line is open.
Excellent thanks, a lot great quarter.
The revenue retention rate up to 98% from 96 and was that largely driven by improved.
Improvements and in the business segment.
That is right Mike.
There's a lot of things, which moves in there, but if you look at trends primary reasons for other growth.
Improvement in net dollar retention rate has improved.
The last on improving muscle.
Got it.
And then just maybe a macro comment on the small business environment.
How does the pipeline and look how it sort of.
You know new lead activity I mean, do you feel like as we are open and the economy opens you're seeing more deals from over the horizon here.
Hi, Mike well, we talked a quarter ago about <unk>.
Positive tailwind for this year coming out of Covid hits.
It's hard to talk too much about pipeline because a lot of our small business customers purchase relatively quickly after they connect with us and and and find out what we can offer but I will note that in Q1 E. Commerce sales were very strong as were direct sales and general So we're seeing those positive signs.
And that makes sense.
And then did you say on your large customer that's expanding internationally that you expect.
Kind of deployment.
And sort of material deployments.
To start and the second quarter.
Yes, we we put a lot of work into preparing for the expansion and we expect that expansion to engage so to speak.
Start to happen in Q2, it'll roll out through the whole year and.
You know, but but we do expect to see some significant progress in Q2.
Yeah.
Great.
Thanks, Matt.
Thank you.
We have your next question from Matt and culture with William Blair. Your line is open.
Hey, guys. Thanks for taking my questions.
And just maybe the first 1 here on the on the direct routing with teams and we'd love to kind of double click on where you're seeing the demand there and I think of other direct routing opportunity, maybe as being more of an up market opportunity, but clearly and obviously, that's where you get teams quote unquote for free with <unk> 5.
But clearly youre seeing some some good traction here some good interest and would love to just better understand what you're seeing on that from where that demand is coming from.
Sure.
So our data from last quarter, which we talked about suggests that 70% of the businesses that are.
Installing teams are going to turn.
Turning to a direct routing solution for more flexibility and better cost.
And you're right. It is larger sized entities, we tend to think about kind of 100 users and up for.
For this type of application is part of our Ummah enterprise platform. This capability and it's largely sold through channel resellers that were connected to.
And I.
I will say there has been a very favorable reception by channel resellers to what we've done with our with our teams' direct routing and it's.
And it's.
It's certainly a developing opportunity. We've also learned through this because it's larger sized companies. There is now a pipeline and a time until <unk>.
Companies make their decisions and install and.
So.
We've been.
Building pipeline for for the for 5 months since we've launched this and and.
You know, we we have a good outlook for it now, but it does take time.
Got it got it that's helpful and.
And then second question just looking at the international opportunity, obviously, you've been very clear about the primary focus there being supporting your large customer and the expansion there and.
And that's and.
Inherent in that Youre going to establish from the underlying infrastructure you need to support other customers.
Could you just walk through assuming that maybe in next year and the coming years, you start to expand your international presence outside of that kind of core customer if you will.
What kind of investments will be left on the kind of go to market for them and getting that infrastructure set up internationally and how you think about the timing and when that starts to layer in.
Yeah.
You're right that this year is all about serving our large customer and we talked a quarter ago about how we see the potential this year to double the number of users without customer from 25000 or so today to 50000.
And that's our primary focus this year, we're not trying to go beyond that.
Little too soon to talk about what our plans will be next year I can tell you that this large customer will have the potential for significant further growth next year as.
And as we look out so.
And we'll be balancing that with trying to go beyond this customer and serve the market in general.
We are.
Uh huh.
A lot of our our small business customers come to us through direct.
Sales activities, a lot of marketing a lot of inside sales and those things would be relatively easy to ramp in new locations.
And.
So we do think about that but I'm sure when we get to planning next year will be trading off all of the different opportunities in front of us to see where we think we can have the most.
Impact and so that.
1 is a little bit more to come.
Got it and that's helpful. Thanks again.
Yeah.
We have your next question from Josh Nichols with B Riley Your line is open.
Yeah. Thanks for taking my question and Great to hear the company is kind of on track for business revenue guidance, you kind of cross that 50% threshold at the end of this.
Fiscal year and then.
Similar cord.
It looks like Youre getting some good traction on the reseller market as well.
What do you think is really driving that as far as the companys core value proposition and how long until that could get from say, 40% of sales to date and of course I'm trying to think about the opportunity there.
Yeah.
Well, what's driving it a little bit is on.
And our investing if you will and the development of those channels.
We are.
We historically have focused more on on the direct sales side of things and we've been building the team and building the relationships and.
Establishing the solutions for.
Serving larger businesses through channels and I think that's going well, but I think we have a long runway ahead of us a lot farther we can go with it.
1 of the channel reseller relationships that we established in Q1.
And could be quite impactful for us as we look forward.
It's.
It's a very large reseller that we're very excited to now be starting to work with.
And how fast it will get to 50% it depends a little bit on how fast the other half of the business growth as well so we.
We havent really set that kind of a target, but we have set targets to.
Develop and these areas because we do see channel resale activities as an untapped opportunity for us largely speaking and.
And so where we're.
And definitely want to develop it.
Thanks, and then last.
Question for me, if we could.
Break it out a little bit for the what's kind of the mix right now between Mike but enterprise.
Elaborate a little bit on what you're seeing as far as like the current <unk>.
Trajectory is there and outlook generally.
So keeping in mind that we launched our first office solutions, a number of years ago and we've been.
And.
We set out I'd like to say, sometimes we set out 10 plus years ago to conquer residential and we did it and we'd be established the number 1 solution and the market not only in terms of our success, but in terms of you know scores by customers and we set out to do the same and small business quite a number of years ago and I think we are there today I think we're growing faster than others.
And I know were rated the number 1 solution and third party surveys on enterprise is still a work in progress for us and so it is it is much smaller we started this effort with an acquisition we made a couple of years ago.
It was a fortunate move because we were able to blend what we do with enterprise along with what we do with office to serve our largest customer and enable that opportunity. So a lot of our early efforts with enterprise were around that.
But today as I said in my remarks.
We're focused on what we consider a differentiated strategy against the other larger players 1 built around.
Some unique things, we do on direct routing for teams and some select verticals, where we think we can bring some added value and thirdly, the ability to customize our solution for larger customers to do special things that they just wouldn't get from anybody and the industry today and those capabilities I think will allow us to charter and on course, but it is a long.
And now a longer term strategy to build enterprise to where we want it the way we have already done with residential and office.
Okay.
I'll hop back in the queue and Ravi best of luck on future opportunities and it's been great working with you over the years I've talked to you guys later.
Right.
We have your next question from Matthew Harrigan with benchmark. Your line is open.
Oh, thank you.
Deutsche Telekom capital markets day.
T mobile really reiterated your emphasis on their home Internet.
Project, and really get into 78 million 70 to eat million customers and 5 years.
They're also take much more of a business and SME focus overall, not surprisingly gravitating away from their traditional consumer emphasis because they are underpenetrated I know, you've probably got hurt doing a little bit by sprint being much more business oriented the T mobile and initially and now it looks like and you can pull back.
And your direction is that anything that has any.
Implications for you or positively and negatively or is that just basically basically noise.
Well, let me start with part of what you were speaking about.
We're very excited about what we think we can do with whom a connect which is our wireless internet solution. As we look forward and R and T mobile is our partner and.
We're also thinking not only about <unk>, which is the way that product works today, but in the future. When <unk> is more ubiquitous and lower cost I do believe business Internet small business Internet can.
Can be well served by 5 G.
And with.
Capabilities and price points that will be competitive. So we're looking ahead to that we're also mindful that when you put that internet together with our home office phone service solution.
You can do things that improve the experience for the customer whether it's making their Wi Fi phones work better or.
You know our continuous voice technology or other things. So we're also thinking about and integrated solution to be stronger and serving small businesses.
Mobile is an important partner of ours for this and.
And we're thrilled to be working with them.
Great. Thanks, Eric.
Great very brief and.
<unk> booked a nice working with you Ravi as well.
Absolutely. Thank you Matt.
It has been fun.
Your line.
Yeah.
We had your next question, Brian <unk> with Alliance Global Partners. Your line is open.
Thanks, so much for taking my question.
So can we consecutive quarters, you've added roughly a solid 12000, new business jobs net.
During the pandemic and the business environment and prove there's no travel restriction drilling and the U S. I'm not sure that impacts from at all how you how you've shifted.
You're adding new channel partners, you are adding direct sales folks your churn is lower so the question is outside of your largest customer.
Any reason to believe you wouldn't be increasing or accelerating the number of subs you add for a quarter and the second part of the question is given your personnel and travel restrictions wherever they are what's your capacity to add users for quarter, meaning can you add 15000.
For the quarter outside of your largest customer and while continuing to expand within that customer.
Yeah. So let me take the second part of your question first we have a lot of capacity to expand with more users, there's nothing holding us back on that front.
And yes to realize our growth ambitions, we have to add more users.
As we go forward so that's clearly.
And in our in our strategy.
To be honest the it depends on the second wave of the pandemic.
Around the holidays and then what happened.
A couple of months of first few months of this year did did affect some of our channels not enough to slow us down fundamentally but we.
We do think we'll as we look forward that those will bounce back and then as we look forward now we are seeing a brighter outlook than we did say early in Q1, when some of that was happening.
And so yeah.
Yeah. It's.
Certainly our intent to grow significantly there are arguably 6 million businesses in North America with 1% to 20 employees.
And we we have less than a 100000 of them so or about 100000 of them so tremendous opportunity for us to go after.
Great.
My follow up question is on the in terms of the enterprise side, where you. Obviously you highlighted you haven't been there as long.
So.
And a little bit of time as management and the board considered M&A as a way to accelerate enterprise adoption or a stronger entry.
Well, we got to where we are partly by through by 2 M&A moves the acquisition of Baxter and the acquisition of broad smart.
The first brought us more technical capability and the second brought us.
And established customer base, and establish sales and channel relationships as well as other capabilities.
I think that's a great foundation for us we're not adverse to more M&A that we think would build our direction, but it's also not a primary focus for us.
We certainly don't want to distract ourselves from the opportunities we're pursuing right now.
So I realize that's a bit of a ambiguous answer for you but.
That's kind of how we see it today.
Okay. Thanks, so much.
Thank you.
Again, if you would like to ask a question. Please press star 1 on your telephone keypad again that is star 1 to ask a question.
Yeah.
I'm showing no further questions at this time I would now like to turn the conference back to Mr. Eric Stang CEO for any closing remarks.
Thank you operator, and yes, we do have some closing remarks this time.
You know I.
As we announced on April 26, Ravi will be departing houma to pursue other opportunities and when that occurs.
We're fortunate to have none marotta Sabra wall, who will take over as interim Chief Financial Officer.
We also intend to enter into a consulting agreement with Ravi upon his departure to assistant and the transition to a successor.
I know from the many comments that have been shared with me since the announcement that.
And that all of us will Miss Ravi and that we wish them well.
I can honestly say that Ravi has been like a brother to me the last 6 and a half years and I will dearly Miss working with him every day.
But I'm also really happy to see Ravi move to the next chapter of his career and I wish him great success, and those endeavors and most of all on behalf of the board and the company I just want to thank him for his many many contributions to hummus. So Bobby Thank you.
Thank you Eric.
And this means a lot to me.
I would like to take this opportunity to thank my board.
Yeah hold on and then Pat and Mike Dean for.
Providing me with touch and for music.
Over the years, we have seen who might become a more mature public company with a solid foundation supported by a headache and a strong management team with income.
East culture enables execution continuous improvement and a positive environment.
As a result of this Matt executed well towards that strategy and I believe it is well positioned to do so and the future.
I'm forever Grateful for this opportunity I was provided to be a part of something big and I have very much enjoyed my time at Duma and has truly become second family for me.
I think Eric and then Matt.
And the venue.
Thank you thank.
Thank you Ravi.
Thank you everyone on this call.
A new chapter ahead, but we're looking up so looking forward I should say.
Thank you everyone that ends the call.
Ladies and gentlemen, this concludes today's conference call. Thank you for your participation you may now disconnect.
[music].
Eric.