Q1 2022 SeaChange International Inc Earnings Call
And good afternoon, and welcome to see changes fiscal first quarter 2022 conference call for the period ended April 30.
2021.
My name is Diego and I will be your operator this afternoon.
Joining us from the company as executive Chairman, Robert Pons, Chief Financial Officer.
Officers, Michael print and senior Vice President of global sales and marketing Chris Clemmer.
After the market closed today see change is issued its financial results for the first fiscal first quarter and a press release, a copy of which is available and the investors section of the company's website at Www dot.
And at Sea change Dot com.
Before we begin today's call I would like everyone to please take note of the Safe Harbor paragraph that is included at the end of today's press release.
This paragraph emphasizes the major uncertainties and risks inherent in the forward looking statements that management and we'll be making today.
As indicated.
We're looking statements are based on management's current expectations and are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations.
These risks and uncertainties are also outlined and the company's SEC filings, including its annual report on form 10-K.
And quarterly reports on form 10-Q.
Any forward looking statements should be considered in light of these factors.
Additionally, this call contains certain non-GAAP financial measures as that term is defined by the SEC and regulation G.
Non-GAAP financial measures should not be considered in isolation from or.
Substitute for financial information presented and in compliance with GAAP.
Accordingly, he change has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures and the company's earnings release issued today.
I would like to remind everyone that this call is being recorded and will be made.
As for replay via a link available and the Investor Relations section of sea changes website.
Now I would like to turn the call over to see changes executive Chairman Robert Pons, Sir. Please proceed.
Thanks, operator.
And good afternoon, everyone. Thank you for joining.
Available today.
And our last call in April.
I left you with 3 words streaming streaming and streaming.
Today I will begin my comments with 3 words streaming streaming and streaming.
According to a recently published research.
Joining us port following the worldwide streaming trends the streaming industry will surpass $140 billion in annual revenues and the advertising based video on demand industry will surpass $60 billion in annual revenues by 20.
26 <unk>.
C change has repositioned its strategy and technology to capture the explosive growth in all things streaming.
Our turnkey streaming enablement platform for content owners and cable operators worldwide.
And our advertising insertion technology give us a distinct advantage over our competitors.
The mission, we Iran is to reach out to all stakeholders and streaming. This includes but is not limited to cable operators or content owners looking to launch.
Their own streaming services.
And as you might expect it also includes the greater Hollywood and all of the world's film and television producers a big part of our future success will come from strategic partners, who recognize the value of partnering with a full stack.
Stack streaming enablement platform company like sea change and by full stack I simply mean, we have all the technology and expertise to help efficiently and quickly launch a new streaming service yeah.
Your company is part of to exploding industry.
Histories streaming and AD Tech if you shadowed me and our other executives for a week you would see and listen in on the many strategic meetings, we have with stakeholders. We're streaming is their top priority on a weekly basis. We are on conference calls.
<unk>, reaching out to the film and television industries to educate them on our combined streaming and AD Tech enablement platform.
After Mike walks you through our numbers for Q1, Chris will discuss in more detail the positioning of our new go to market strategy and.
And the unique position we're in to capitalize on the exploding growth of streaming and AD Tech Mike.
Thanks, Bob and good afternoon, everyone.
Now turning to our financial results for the first quarter of fiscal 2022 compared to the fourth quarter of fiscal 2021.
Total revenue.
For fiscal Q1, 2022 was $5.1 million compared to $5.1 million and the prior quarter.
Revenue was driven by an increase in product revenue offset by a decrease and legacy maintenance revenue.
Product revenue for fiscal Q1, and 2022 increased 16% to $1.6.
Our 32% of total revenue compared to $1.4 million or 27% total revenue and the prior quarter.
Service revenue for fiscal Q1, 2022 decreased 8% to $3.4 million for 68% and total revenue.
Compared to $3.7 million.
<unk>, 3% of total revenue and the prior quarter.
The.
Kris and service revenue was primarily due to decline and legacy maintenance.
Okay.
Revenue from our international markets and fiscal Q1, 2022 was $2.9 million or 56% of total revenue, which.
Our 7 to $3.7 million or 73% of total revenue and the prior quarter.
Revenue and our U S market for fiscal Q1, 2022 was $2.2 million or 44% of total revenue.
Which compares to $1.4 million or 27% of total revenue and the prior quarter.
Looking at our margins gross profit for fiscal Q1, 2022 was $2.8 million or 56% of total revenue compared to $2.8 million or 55% of total revenue and the prior quarter.
Product gross margin for fiscal first quarter of 2022 was 75%.
Compared to 46% from the prior quarter.
Service gross margin was 47% compared to 59% from the prior quarter.
Now looking at our expenses non-GAAP operating expenses for the fiscal first quarter of 2022 decreased 12% to $5.6 million.
$6.4 million and the prior quarter.
GAAP loss from operations for fiscal Q1, 2020, 2 totaled $3.8 million and improvement of 635000 compared to $4.4 million and the prior quarter.
As a percentage of total revenue GAAP loss from operations for the first quarter of fiscal.
2022 was negative, 75%, which compares to negative 87% and the prior quarter.
Non-GAAP loss from operations for fiscal Q1, 2020, 2 totaled $2.8 million or a loss of 7 cents per basic share and improvement compared to $3.5 billion.
Or a loss of 9 per basic share and the prior quarter.
As a percentage of total revenue non-GAAP loss from operations was negative 55% compared to a negative 69% from the prior quarter.
GAAP net loss for fiscal Q1.2022 totaled $4.
He and a million or a loss of 10 cents per basic share.
This was an improvement compared to a net loss of $4.4 million or a loss of 12 cents per basic share and the prior quarter.
Non-GAAP net loss for fiscal Q1, 'twenty 'twenty, 2 totaled $3.1 million or a loss of 7 cents per basic.
1 compared to a non-GAAP net loss of $3.5 million or a loss of 9 cents per basic share and the prior quarter.
Turning to the balance sheet at quarter end, we had $21.3 million and cash cash equivalents and marketable securities, which compares to $6.1 million at the end of the prior quarter.
Sure. It's completes my financial summary for a more detailed analysis of our financial results. Please refer to today's earnings release as well as our 10-Q, which we plan to file by the end of the week.
Chris.
Thanks, Mike.
Good afternoon, everyone.
Today, I would like to give you an overview of our strategic.
And product initiatives that we've implemented over the last several months.
Mainly to achieve 2 key goals.
First to better address the needs of our existing customer base and second to create a product and value proposition to target the extensive growth opportunities and the streaming.
The teacher and ethnic markets.
As many of you know the pandemic has dramatically accelerated the paradigm shift towards streaming.
Streaming business models today dominate the content value chain from production to consumption and monetization.
At the same time traditional linear television continues.
<unk> be a highly relevant services for cable and broadband companies to acquire and retain subscribers.
Both traditional linear TV and streaming have 1 thing and com.
The increasing need for technology that supports intelligent monetization and business models to increase advertising revenues.
So in response to these market trends and to simplify our go to market strategy and offering for both current and prospective customers. We have established 3 product platforms.
Cable video delivery platform.
OTT streaming platform.
And advanced advertising platform.
At a high level.
We have for primary objectives for our new product marketing strategy.
First.
Established dedicated product lines for all 3 current and future revenue drivers.
Second <unk>.
Introduce growth vehicles for recurring revenue streams.
Third incur.
Increase.
And asset value with clear value propositions respective target verticals and reference cases.
And fourth drive targeted and relevant product innovation with our exceptional team of video software engineers.
The first product is a cable video delivery platform a robust on from video management.
And system to provide long term value to cable companies around the world.
For more than a decade. This technology has enabled major broadband service providers and cable companies to orchestrate the delivery of content to all screens and devices globally.
Today more than 80 customers rely.
Don't see changes software solutions and professional services to deliver compelling content to households.
These same customers will be incredibly important to us going forward.
And as we work to ensure long term stability of the deployments by providing continuous software upgrades feature.
<unk> and security enhancements and value add services, such as advanced analytics.
In terms of the platforms business model and will continue to be a combination of software licenses professional services and support and maintenance.
Success with our cable video delivery platform.
<unk> will translate to even greater customer retention and new high margin customer expansions.
And a unified software platform that allows us to streamline our support efforts.
Our OTT streaming platform is our newest product.
Which provides a complete cloud.
If online video platform to enable premium and profitable streaming services, both for operators and content owners.
Yes.
As an enabling technology C change effectively serves as a conduit to facilitate the delivery of video content to end users globally.
This.
Naval positioning between the provider of the streaming service and their consumers helps our customers situate themselves successfully and the multibillion dollar video streaming market.
Our OTT streaming platform also helps our customers fully maximize the return on investment of their content and user.
Favorite position costs.
And they can now address their consumers directly with relevant content offerings targeted campaigns or up sell services.
And that sense, our OTT streaming platform democratizes video by allowing content owners to bypass intermediate platforms and deliver content.
User out directly to consumers on all device platforms.
By cutting out the middleman so to speak.
Content owners can lower customer acquisition costs, while driving higher ROI through targeted monetization strategies across all video business models, such as Avon and smart or.
Doug.
Key to our ability to enable successful and profitable streaming services is our proprietary analytics engine that is debt is embedded and the platform.
And with machine learning algorithms that help to segment and cohort relevant consumption and business intelligent data we generate meaningful.
<unk> and actionable insights for our customers to optimize the promotion or packaging of content to increase traffic and engagement on the services and to reduce churn.
Our OTT streaming platform also increases our customers' brand value due to the premium level of service.
For Sea change this product line provides us with a true software as a service offering structured on a pay as you grow model that includes fixed minimum fees with upside based on usage level.
As the software enabled platform, we can leverage the same product code base across multiple customers.
<unk> to achieve a scalability effect.
With the platforms recent launch our sales team is keenly focused on marketing the product to customers and securing logos.
Our success in this area with established and new stream of high margin recurring revenue for our company.
Third our advanced advertising platform as a unified <unk> solution for broadcast and OTT.
To increase AD revenues for carriers and broadcasters content owners.
The platform enables the insertion of advertisement into inventory on linear broadcast feeds as well as IP delivered streaming.
Dreaming content.
Together with the analytics engine I previously mentioned content owners I'll provided with greater insights into their audiences and can generate higher advertising revenues right away.
In addition to term licenses sea.
C change benefits financially through recurring variable.
Mobile fees tied to certain metrics such as AD impressions.
Our team is laser focused on securing logos for this platform and capturing and meaningful share of the fast growing and massive AD tech market.
And I look forward to sharing our success and brokerage and all 3 of those product categories and the coming month.
That concludes my prepared remarks, I'll now turn the call back over to Bob for his closing remarks Bob.
Thanks, Chris and.
The traction we have established on the strategic roadmap has made sea change and much more capable focused and scalable organization.
As you've heard us talk about.
We have deepened and expanded customer engagements, including most notably the multiyear multimillion dollar contract with 1 of the largest broadband service providers in the U S that we announced at the end of March from a financial perspective. The roadmap has produced many tangible benefits.
And as well, including a stabilized top line and optimize cost structure and have bolstered balance sheet.
These favorable dynamics have allowed us to accelerate our plan to capture the explosive growth and streaming services and b and an even stronger position to drive growth.
Fiscal 2022, and the years ahead.
I'm encouraged to report that our pipeline is building and our sales opportunities have never been more abundant and we hope to share some of these developments and progress with you in the near future.
Taken together, we remain highly confident that the.
Successful execution of our plan will translate to growth and enable us to drive scale capture market share and create even greater value for both our customers and shareholders over the long term and 3 final words before we go to questions streaming.
Streaming and streaming.
That concludes our prepared remarks, we are now ready to open the call for questions operator.
Thank you.
And ladies and gentlemen at this time, we will be conducting our question and answer session.
If you would like to ask a question. Please press.
Star 1 on your telephone keypad, a confirmation tone will indicate that your line is and the question queue.
You May press Star followed by the number 2 if you would like to remove your question from the queue.
For participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys once again.
Question Press Star 1 on your telephone keypad.
Our first question comes from Steven Frankel with Colliers. Please state your question.
Good afternoon, and thanks for the opportunity to.
I'd like to drill down a little bit on this go to market approach.
Where are you and.
And so have to building out the sales force how many bodies do you have today, how did that compare to a year ago and income.
And we opened Rex.
Let's start with that.
Yeah.
Chris do you want to comment on their sales force. Please.
Sure, Thanks, Steve and good afternoon well.
Fully understand.
And that you need to ask this question and I Hope you also understand that I will not disclose the specific number of months for.
What I can say those.
We are represented in our markets and we believe generate the highest ROI for us.
On top of that we've invested and partnerships and recent a broke grams to build a network of local support and regions.
Steve This will grant us fast time to revenue I.
And I can also say that we haven't reduced net sales force and the country I mean, we're trying to build it up intelligently.
With that she ran to.
To achieve for fast time to revenue and I all arrive at and doesn't it.
Okay Yeah.
And then in terms of the the large contract you won in March.
We've seen that revenue is that part of the product revenue that was seen.
As seen in the quarter and.
And kind of related to that backlog seems pretty stable.
To that backlog is maintenance kind of give us a feel for for what that backlog represents.
Hey, Steve It's Mike. So first part of your question I think I'll, just kind of regurgitate, what we went over last quarter.
It was a multiyear multimillion.
And how much the deal that we announced and there was probably about a third of it that accounted for and what it was and the kind of a product revenue for this quarter and then the remaining 2 thirds.
It's spread out fairly evenly over the next kind of couple of years. So it was a chocolate, but it wasn't you know kind.
Dull and 70% like you've seen and some of the other.
Deals and the last couple of years.
And then the second part for <unk>.
Moving to other backlog are I would say probably.
70% of it is.
And we'll come in Ratably quarter to quarter. So we've got probably around 1 million.
6 right now minimum for kind of a recurring piece for the framework deals that we sold and the last 2 years and then there's there's always some kind.
Kind of odds and ends and air that might be a little lumpy lumpy, but that's only a small piece of that backlog.
Okay.
Okay.
And and you did a good job disclosing the number of.
Traditional cable customers could you give us a feel for.
The number of screaming customers, you have either live today or under contract today that lunch.
And the coming quarters.
Not not yet Steve you know, we do have them and it is you know than the newer area and a very.
Our business going you know thrust going forward.
We are winning new ones, we hope to announce some of those and in the very near future and.
And.
You know to everyone, but yeah, we're not announcing the numbers and M. Yet at this point.
Okay, and and same question on the AD Tech because I know previous administration had talked about a couple of large and that feels did those come to fruition and kind of where are we in and in.
And AD Tech.
Yeah. So I'll go and so we can at 1 yeah I'm sorry, Greg go.
Go ahead, sorry, you go ahead and I'm sorry.
No just you know Steve we have you know, we're working with some of our customers.
I.
Theirs.
There's a lot to it in terms.
Restructure itself.
And in regards you know we're taking.
Pressure look you know at where we can perhaps sell it as more of a software as a service model and we're doing a lot of things and having those discussions with the current customers that have the system installed Chris.
Yeah, maybe just you know just out of the general remark I really believe who bring immense value for onto our customers with the tech solution because you know there's.
There is business model and we support that I believe are pretty unique and.
For example, the fact that we support AD insertion and through a unified platform for both broker broadcast and OTT, which is which.
The empathy and special.
And what do we have changed now Steve is the way how we go to market with that product, where we went to market with a business model based on revenue sharing which put us in a position that is Johnson and for a company like us because we need to venture into new parts of the value chain such as for example, you know get buyers into the into the <unk>.
System, while we used to do that we're now really focusing on our capabilities around enabling AD insertion and and are basically going back to more current.
Conventional business model based on as Bob said, you know license and software licenses and variables such as AD impressions. So.
It's really for a direct correlation between the value that we bring to our customers and the business model that we support for our customers.
Okay and then.
Last question for Mike what was the customer concentration and the quarter.
Yeah.
So theres nobody kind of above that 10% mark that we disclose.
Okay.
Alright, thank you.
Thanks, Steve Thanks, Steve.
And a reminder to queue up for a question. Please press star 1 on your telephone keypad tours and move your question.
On a Q press star 2.
Our next question comes from Rommel Dionisio with Aegis capital. Please state your question.
Yeah, and good afternoon, and thanks for taking my question.
A few quarters I think you've talked about how it will.
With the pandemic because some of the customers held off on making new technology decisions.
And from that and maybe we're a little slow to migrate to a framework from some of the older legacy soft and I Wonder if you could just characterize the current environment are you still seem that hesitation or is that starting to open up in terms of the discussions you guys are having thanks.
Yeah, So I'll, just ask and answer the first part of it and over the last part of that it's opened.
And the point of it.
Our sales team is.
Much easier and it was there.
Getting a much warmer response from reception and anything.
We experienced a much greater than anything we experienced on the what I'd call. The peak of the Covid months Chris.
No.
And up quiet and that you know the the Covid effect is over.
The market is open up the dynamics and the market on best there's an abundance of opportunity, especially and the DTC direct to consumer sector.
Where content owners are pushing to the market with you now.
With that branch and then they want.
Can only physicians directly from the consumer without.
And having to go through platforms, such as Youtube or content Aggregators, So publishers and content. So there's a lot of dynamics on the on the market.
We see new players emerging and new and creative business models emerging.
We also see that you know the traditional linear T D. And then also streaming space.
Is picking up again, and we also see that let's say the more institutional players and the industry such as a.
Cable companies and operators that back to you know to thinking about what they want to do without TV proposition and so I can I can only you know second football and I said, there's a lot of moving on the market and I think we you know with the new.
To product strategy and positioning them, we have a clear message and a clear value proposition.
That'd be can benefit from in this very dynamic environment.
Okay, that's great color, thanks very much.
Thank you thanks Rommel.
Our next question comes from area call with call capital. Please go ahead with your question.
Oh, good afternoon, and thank you very much for hosting this call and best of luck with your efforts going forward and number 1 about your products and have you been able to obtain any third party reviews by.
By companies that have a consulting or other sorts of practices and the industry that would compare and contrast, your streaming and AD insertion solutions versus others.
Obviously, the big data evolve and Gartner, but you're more of a niche sort of assume it'd be yeah from peoples perfect for what you do and I would.
And those reviews, if they're available.
That's a great question. Thank you and I don't think anyone's ever asked for is that we are not quite as specific as you met and you know like a gartner or a smaller version of them.
But I would say almost on a couple of times a month, we are in and.
Love tools and testing out you know what we built a sometimes it's you know someone who and who knows the technology extremely well from a company that we're not even selling to today.
We also have recently been in discussions with a research firm.
Based out of Europe.
To get our own proprietary research here in our hands and that will better direct US you know, particularly and streaming where we should be laser focusing our sales organization and better understanding where the futures streaming opportunities might be but it's a good question and and I kind.
And I feel like we do it maybe not as formalized and hiring a gartner at this time.
We are we're actually speaking I can't tell you the name of it but there is it's almost as big as Gartner whereabouts do Air Force interview with them.
I think and a week or so Chris Clemmer, and I will be on a part of that.
And India.
Okay.
Thank you for the question Yeah get later and then.
For prospects for kind of come and go come and your website and I.
And I understand I can see you've made some enhancements and changes to your website and the past 2 months, but my question is is oftentimes companies like to prevent prevent and like you know.
Success stories case studies.
The other furniture products and what they have achieved it would show a return on investment and other sorts of things I don't have that right now Hum Ralph Fong wages and you are from being able to more clearly publicized success stories.
You will see it.
I don't want to say give you like say 30 days, but are they within a month or 2.
And maybe a little bit you know how redesign of websites go and the writing of content and things.
But we are hard at work we've engaged an outside firm who has been at it for a while.
And I think you'll see some things.
Things very very soon and you know at the site. So please stay tuned and it shouldn't be you know before its certainly the next quarter earnings and you'll even see some things relating to a presentation of our capabilities. Our debt. This company has never done before so.
While pretty exciting stuff Allah Ala Hollywood, if I may say, so stay tuned.
Yeah, and just 1 last thing and in terms of your average deal sizes can you kind of give me a sense for.
When you're looking at your pipeline and what sort of average deal sizes are successful.
Hoping.
Going to achieve kind of a you know the media and sort of number the reason I ask is my impression is.
Is it your customers and we'll be paying you a mix of software and service revenue upfront, but you have kind of our contracts.
Contracts are kind of performance space. They hopefully are successful going for.
For and are able to sell advertising you've set up.
Gain sharing arrangements, where a percentage of your advertising might be earned by sea change.
It takes place so what I'm trying and get a sense for us.
The upfront when companies are installed and are beginning to use the product they purchase.
What's the deal sizes may be and hundreds of thousands of dollars and once the potential I guess for revenue and you know your 1.2 and 3 is the AD insertion and revenue starts coming in.
Yeah Okay.
Let me sum up.
Sorry for my 2 Brad.
Yeah, Chris My part might be.
And then you can kind of add on and what I missed.
So you know, we typically don't disclose kind of dollar value of pipeline you know we like to do it when deals are 1 but I will say that there is a you know you hit the nail right and the head that I think the deals will be a combination of.
Types of product and services that will have a fixed.
Component and then in addition, there will be no variable type component, whether it's kind of users you know subscription or a revenue share and some cases. So I think we'll give some more kind of concrete numbers when deals are 1 and not necessarily and pipeline, but you know they will have the different mix of.
Shorter fixed and variable piece.
Okay and in your sense of the mix of fixed and variable dollars by customer and over 3 years, what might be the mix you think a fixed dollars are and versus variable dollars.
So I don't think let me out and does that number yet Chris.
Go ahead.
Yeah, No I was going to give a number but you know I really hope that the variable part will be you know are at a very high percentage because that would mean that the service and successful and that would be and therefore that basically the traffic that we support through our platform is very high and therefore, the revenues would be.
Yeah. So to answer your question you know this is the this is in and a source model other consumption driven sales model, it's difficult to foresee the exact percentages, but the higher the variable part moving the better for us.
And for our credit and of course.
Great. Thank you again.
Thank you and just sort.
And mine or to ask a question and press star 1 on your phone and you can press star 2 to remove yourself from Q.
Our next question comes from Anthony This is Sarah with sales.
Go ahead with your question and thank you.
Hi, Yes, and thank you for taking my question.
I guess I just have a general question.
And just like touching base with.
Your debt.
The large multimillion dollar contract visiting and your site I noticed that you're also looking to increase your workforce when it comes and project managers and whatnot.
How many additional employers are looking to add and.
And is this due to the multi million dollar contract that you 1 and.
And with that being said too.
On your earnings so it looks like you have a unbelievable of 3 quarters worth is that in conjunction with the contract that you guys are current earlier and that's my question and thank you.
Yes sure.
Right.
Oh go ahead Bob.
And we're just going.
We don't typically disclose as you know our hiring.
Needs and requirements, so I and we really can't comment on that Mike you want to take the other part yeah.
Yeah. The other part I'll take the Unbilled there was probably a component that relates to the large contract, but if you look at kind of the.
The buildup of Unbilled over the last year or 2 you can see.
It's just the way the timing between kind of revenue recognition and cash collections and some of them had.
Some deals had revenue that was maybe pushed more towards the you know.
First couple of years, and then collection spread out over and it would be.
3 years of for years so.
I think we've got some details and a footnote, but there isn't a significant piece of that that's related to just 1 customer and it's more of a mix of all the arrangements for the last couple of years.
And thank you and then 1 other thing too I think last time, you guys had no cash.
Customer with more than 10% of your business is that still remains true with the new contract.
For this quarter, yes, and then it will do each quarter and I think on a cumulative year to day basis.
And we will put that disclosure in the 10-Q, and we expect to file our 10-Q.
Tomorrow.
Tomorrow, and so there'll be any additional kind of customer concentration information and there.
I appreciate it thank you.
Thanks.
Thank you and once again to ask a question press star 1 on your phone and we'll pause for a couple of moments, while we poll for questions. Thank you.
Thank you.
And at this time. This concludes our question and answer session. If your question was not taken please contact sea changes IR team at S. P. A C at gateway IR Dot Com I would now like to turn the call back over to Mr. Pons for his closing remarks.
Thank you and and and thank you everyone and.
No we always get a healthy number of participants and the call and this call was no different and we appreciate the interest.
The team the culture and the company has dramatically improved over the last 4 or 5 months we've.
We've initiated some programs that keep all.
Employees engaged and our sales force highly motivated.
And we were spending a lot of time out there.
And with potential strategic partners those are companies from media companies content owners that and.
Any 1 that streaming is is and their road map.
For the future or are companies that we want to sit down with them and talk to them about our capabilities and our great technology assets.
So stay tuned we're we couldn't be more excited about our future and it's great to be selling into you know 1 of the more explosive industries Inc.
Okay.
And the broadcast industry, probably hasn't been this disrupted and and many many years and streaming is causing it.
Someone said to me, we're on a strategic call earlier and the week with some folks in Los Angeles Hollywood.
Groups and things like that every 1 and all the Big Studios are it's all day talking.
Talk about is streaming so it's we're confident with our great technology that will be a big part and they're growing sector. Thank you very much and and be well.
Thanks, everyone for joining thank you. Thank you for joining us today for sea changes fiscal quarter 2022 Conference call. You may disconnect. Your lines. Thank you.