Q2 2021 LifeWorks Inc Earnings Call
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Good morning, everyone welcome to the second quarter 2021 conference call for Life Works Inc. Please note that this conference call will contain forward looking statements, which reflect management's current beliefs and expectations regarding the corporation's future growth and results of operations actual results can differ materially from.
These anticipated I would now like to turn the meeting over to Mr. Steven lip Trapp, President and Chief Executive Officer of Life Works Inc. Please go ahead, Mr lip trap.
Thank you Laurie good morning, and thank you for joining us on the call with me today is Greer culture, our Chief Financial Officer.
Yesterday after the markets closed, we released life, where its financial results for the second quarter of 2021 and year to date.
My comments today will focus on the business highlights for the quarter and year to date Greer will cover off the financials in more detail and then we will open the call to questions.
As we build on our brand change and move further into the wellbeing and digital health spaces. We thought this was the right time to update our reported and we hope you appreciate the more detailed information and updated look and feel.
We've added new metrics and data about our performance as a world leader in total wellbeing and provided more insights into our growth from our digital health businesses. We believe this helps tell our story as we execute on an exciting strategic plan, where they're uniquely differentiate.
<unk> solutions.
This reporting change as timely because it coincides with our first quarter reporting under our new Lifeworks team.
Our new brand launch has been extremely well received by our clients prospects investors and our employees around the world.
Well, we're very proud of our past we're geared up for growth as we continue to own more of the global well being space and bring together amazing capability with digital and in person delivery meeting, our clients' employees needs when and how it suits them.
In the second quarter, we saw strong sales growth and continued expansion of our pipeline reams.
We're moving foreign exchange volatility, we delivered strong revenue growth.
Overall, we saw revenue on a constant currency organic basis grow seven eight per cent in the quarter and eight 7% year to date.
Adjusted EBITDA margins for the quarter were down to $19 two per cent for 19.9% year to date. The margin impact is mainly due to an accounting change related to software implementation cost.
One time expenses relating to our brand change.
And a very strong demand for in person solutions provided to people exiting the COVID-19 lockdown with significant mental health and other challenges.
The good news is our multi modality model of delivering the services in the way our clients employees want and need really resonates we.
We did see a surge of people wanting to see a counselor face to face, which they have not been able to do for 18 months and we know many deeply value getting the help they need in this way.
As further evidence of the power of our model, we're able to win over 10 mandates away for new digital only competitors as they cannot meet their clients' demands for in person services.
We have always believed that to properly support our clients' employees, we need to continually offer a broad range of modalities.
As their needs are very different. These solutions include in person digital telephonic email 24, seven chat and other AI driven solutions. We're very pleased with the strong growth we saw in the quarter and in particular the growth of our digital wellbeing salute.
<unk> a good measure of that growth is a metric of tech enabled recurring revenues, which grew at seven 3% in the quarter, which is close to Q1, if it wasn't for the currency headwinds.
And 11, 3% for the year to date for US is the same periods in 2020.
Another reporting change we made is providing more detailed financial information on our for lines of business.
All our core businesses are delivering to sales and revenue expectations.
At the end of the quarter approximately $5.9 million lives were covered on our Lifeworks platform of 73.5 per cent increase over Q2 last year.
In terms of Upselling, some 20 per cent of the organizations on the platform are now paying for extra modules up.
From 17% last quarter.
We also crossed the 1 million lives covered level for additional value add modules.
Our ICD 10 solution year to date growth is up 419.7% crossing the 1 million session threshold.
The bigger picture is that we are seeing strong adoption of our digital health solutions that go beyond I C. B T. And now include telemedicine, where we're also starting to win market share to support that strong growth, we're continuing to invest in the digital capabilities of our platforms against our commitment to become.
The digital leader and wellbeing.
In July of this year after a lot of system work, we were excited to announce that we integrated our award winning Lifeworks application, our digital global total wellbeing platform into the Microsoft teams and Microsoft's day about.
This integration with Microsoft will enable us to increase the reach of our well being platform to help clients provide and support their employees.
Through prioritizing wellbeing by using our expert digital resources, individuals', who will be able to improve life and productivity within their daily work flow.
This collaboration also uniquely positions us to create evergreen technology for good and has great potential to further spur our growth in the digital workflow ecosystem.
We have seen the need for supportive resources since the beginning of the pandemic and we're proud to help clients offer the tools they need to empower their people.
The real significance of our expanding digital ecosystem is how it improves our ability to offer everything which.
It's really resonating with our clients as a full spectrum of our capabilities in the personalized continuum that we offer to improve the lives of people.
It's not just digital or face to face solutions, we offer everything our clients want for the care that there are people need in the way they want it digital chat video telephonic face to face everything is within easy reach the strategic value of our personal lives continuum of care.
Became clearer in the quarter, where demand for in person services took off as lockdowns begin to recede.
Well digital health care will keep growing at an accelerated rate in person services will continue to be an essential component of the help that people need, especially given the relevance.
Relevance of mental health as a societal issue today.
10 years ago, the idea that the world's most decorated gymnast Simone biles stepping away from Olympics to take care of their mental health would've been very unlikely.
You owe me Osaka Wimbledon is a similar situation.
Mental health is starting to be talked about and we should celebrate these athletes and others. The shell it's okay to ask for help.
Another metric that we've highlighted in our new quarterly report is geographic or regional revenues.
For some time now we've been talking about our expectations for regional growth and broadly speaking our expectations have settled into ranges that include mid single digit growth in Canada mid to high single digit growth in the United States and double digit growth internationally.
International revenues may not be a large part of our business today compare to Canada or the United States for.
10 years ago, the same could've been said of our revenues in the United States, whether it's Australia, Brazil or many other countries of the more than 160 countries, where our solutions are we are getting more traction.
Well being is verifiably, a global opportunity today in our continuing research for monthly mental health index, we're seeing more and more organizations around the world, making the connection between wellbeing and business performance, we are poised to capitalize on that growth as we go forward.
I would also like to point out the availability of our mental health Index provides a key measure for organizations. It speaks to the apps and the ESG framework. We are pleased that our business or brand asset like our index can make significant contributions to the communities in which we operate.
And finally as we did in Q1, we continue to convert strong sales into revenue, while continuing to build our sales pipeline.
Again, we ended the quarter with a record high pipeline all in all a strong quarter and solid year to date performance, let's turn to some business highlights in the quarter.
We had another strong quarter and are integrated health solutions business organic constant currency revenues were up nine 3% in the quarter and 10, 3% year to date for US is the same periods last year.
In this business, we're very pleased to win multiple wellbeing and telemedicine contracts over the past quarter much like we did in Q1.
This includes new wins with two western Canadian public sector organizations, and one of the world's largest technology distributors.
The U S health insurer, we mentioned last quarter that added telemedicine to their services from US is now an open enrollment for one of their two trusts open enrollment for the second trial starts. This month with the addition of a second trust members that will have the access to our telemedicine solution on our platform and his.
The increase from 20000 reported last quarter to 33500 members.
Our health and productivity business has been on a real tariff this year with quarterly organic revenues in constant currency up $19 five per cent and year to date up 28 per cent compared to the same periods in the prior year.
We continue to see strong uptake in our mental health market, leading ability CBT solution with multiple contract wins in Canada and the U S.
Wins in the quarter include another milestone in our partnership with the government of Ontario to support the provinces mental health strategy.
We have also seen two significant distribution partnership deals in the U S where the western University.
In our administrative solutions, which includes our health and welfare business, we had a strong quarter and excellent constant currency organic growth of seven 2%.
There were several significant administration wins were Upselling and cross selling where big themes. We sold many additional special projects for the defined benefit solutions to a global financial company based in the United States.
For a large north American industrial company, we now have for solutions on the books that include defined benefits in asset and risk management.
In retirement and financial solutions here.
Two we are having a solid year and had been over performing slightly in Q1, and we underperformed somewhat in Q2.
We're essentially on track for the year New contracts include a western Canadian government added mandate, along with sizable deals with two pension plan administrators.
Before handing off to Greer I want to emphasize a few points about where life works is going and how we're getting there.
First as a global enterprise, we are moving forward with a new brand as life works that supports our growth strategy. Our new brand offers a fresh voice it speaks directly to our purpose and a powerful trend in the sector that makes a strong connection between improving lives and improving business.
Second the change in our reporting approach is an opportunity to tell our story as a growth business with deep strength in bringing our digital technology and talent together to deliver a uniquely differentiated value proposition to our clients for.
Finally, there are three levers for growth in our business model that gives us confidence in where we're headed one is a solid core of recurring revenues across our businesses.
Second is they're accelerating global expansion and third is our proven ability to grow by innovating with new digital technologies to create market, leading solutions, such as our integrated well being platform.
No fear will review the financials.
Thanks, Steven and good morning, I'd like to briefly add some context to Stevens comments about the changes in our reporting format and metrics.
Going forward, our news releases, where we will net out the highlights for any given period, we will no longer use that format to duplicate information that is more comprehensive we provided in our quarterly report.
And our redesigned MD&A, we have expanded our reporting to provide additional metrics that we look at as a management team to assess the performance of our business, including geographical detail and service line information at the business level.
Let's turn to the financials.
It was a strong quarter, what's transit stands out for me and the results are two trends in the business that complement one another.
The first is how fast our wellbeing offerings are growing in providing digital health solutions.
<unk> is the return of in person services, the pent up demand coming back as lockdown conditions start to recede.
Taken together the growth in digital and high demand for in person services tell a compelling story that we really can do anything our clients want right across a very broad and personalized continuum of care, where not only digital or face to face we do it all and that story is showing up in the revenue growth that we.
We are driving.
In Q2, the top line was excellent we reported $257.7 million in revenue an increase of four 7% over last year, but considering the strong foreign exchange headwinds that number was nine 3% on a constant currency basis.
Year to date. The story is just as strong on the top line with $514.9 million in revenue.
For a five 2% increase and eight 7% on a constant currency basis.
Yeah.
Tech enabled revenues were also strong in both for quarter and year to date.
You will note that we are providing more information on the impact of currency. It may not always tell a different story, but right now it does.
And it's likely to be relevant as we continue to grow this business globally.
We continue to be pleased with our revenue growth in all regions that we operate.
Organic revenue growth on a constant currency basis in Q2 was 7% in Canada.
Six 6% in the U S and 28, 8% outside North America.
Year to date those numbers are eight 6% 6.6 per cent and 27% respectively again, all constant currency.
Stephen mentioned adjusted EBITDA margins in the quarter and the reasons for the marginal decrease adjusted.
Adjusted EBITDA was $49.5 million in the quarter and $102.3 million year to date.
We were up two 9%.
Year to date on adjusted EBITDA with margins of 19, 9% a decline of approximately 40 basis points year over year again for the reasons that Stephen had mentioned in his remarks.
Adjusted EBITDA per share this quarter was 71 cents compared to 75 cents in Q2.2020.
Profit for the quarter decreased by $49.1 million, primarily driven by the after tax impact of accelerated amortization recognized in relation to the chappelle trade name of $51.4 million in the current quarter.
Basic earnings per share for the quarter decreased by 70 cents versus the comparative period as a result.
During the quarter the company generated normalized free cash flow of $25.4 million compared to $32.8 million in the same period in 2020.
A decrease of $7.4 million, which was driven primarily by higher capex related to the leasehold improvements for our new corporate office.
And software development.
We are pleased with our management of working capital and this is a result of our continued focus from our people managing accounts as an example of this our average receivables outstanding has declined by eight days year over year.
Lastly, the company will continue its policy of paying a monthly dividend of $6 five per share.
And with that I will turn it back to you Steven.
Thanks for for your comments Laurie. Please go ahead and open the line for questions.
Humans for lip trap, we will now take questions from the telephone line. If you have a question and you're using a speaker phone. Please lift your handset before making your selection. If you have a question. Please press star one on your devices Keypad you may cancel your question at any time by pressing Star two please press star one at this time, if you have a question.
I'll be a brief pause for all participants register for questions. Thank you for your patience.
And the first question is from Stephanie price from CIBC. Please go ahead. Your line is now open.
Hi, good morning.
Definitely in the MD&A.
Rebranding over here.
Just curious what does the year over year increase.
It's not like for likes platform can you talk a little bit about what you're seeing in terms of demand for the platform that that'd be helpful.
Like any change in kind of light weighting.
Enterprises are looking at.
Yeah. Thanks for the comment on the a M D N a and everything Stephanie It was obviously really important to us to do that and it was good timing with the branding in terms of the platform. We're seeing as you've seen continued in Inc. Image.
Interest over time, when we think back to when we started this shortly after the Lifeworks acquisition. We had this concept in this theory that rather than just phoning in for support it was way better than we could get a platform in front of the employees of our clients and on that platform. They could have personalized feeds era.
And what day, we're mostly interested in rather than what others thought they'd be entrusted that they could have immediate access day counselors that they could get all the support and everything and we've been having the conversation with clients over time and as you know the number of people that we cover within our EAP has increased significantly up too.
You know just under 15 million direct lives. We've covered and then every single quarter, we've been talking to our clients without getting their employees on them and we're quite excited that we're just under 6 million lives.
Our lives that we've moved onto our enhanced platform, we're getting really really good feedback and then as you would've seen the rate of.
Clients, saying, we'd like some additional modules, we'd like to do more with the platform and we're willing to pay that has increased our where we're now over 1 million lives and our upsell as we kind of track. It is over 20%. So we continue to get great traction.
And we continue to be ahead of where I thought we were but I think there's lots and lots of potential for growth as we go for it.
Okay, Great and then just.
Microsoft relationship and the teams integration just curious if you can give us a little more color on that so Microsoft for reselling of life for installation and how should we kind of think about that relationship.
Yeah, we're really excited about this we spend a fair bit of time are getting everything working from a technological standpoint, and we're really excited to announce that recently.
And as most folks know theres over 250 people are moving teams alone, which is incredible when you think about it and imagine if you're working in the teams ecosystem and with a click you can get help and the support you want you don't need to leave the system you don't have to think about something else.
Also with us being in there you know right up beside calendar and right up beside chatter and everything it's a constant reminder to people that there is support at their fingertips, we've rolled it out to our employees are about a quarter ago as a test and the feedback has been absolutely incredible.
We've been starting to take it into prospect presentations, which is really really positive. We know that we have a lot of overlap between our clients and Microsoft clients and as we're in there doing those presentations. Our clients are very very excited about having something that integrates to the thing that their employees are on every single day.
So when I think about it I think theres, an opportunity around winning more and increasing our win rate because of having a more integrated opportunity as we think about prospects than when I think about our current clients, it's really about an opportunity to get more of them on the platform because the platform becomes more powerful.
And then frankly, a lot of those cases, we will be delivering a more digital solution. So it will also help us with margins over time as well.
Yes, there are agreements in place with Microsoft and we will have opportunities to expand on that a little bit, but I think theres a lot of things that will come to fruition over the next many many quarters that will make this a great deal for us.
Okay, great. Thanks, and then just thoughts on Canadian for career.
EBITDA margins net quota share, but there were some.
Puts and takes here maybe some of that was non recurring can you just kind of walk us through them.
That's true.
To treat for things that you mentioned and maybe also as a follow up can you talk a little bit of French from between a young person working for virtual care.
Yeah, Stephanie and I'll flip it to grow in a second I just wanted to make one quick comment because in an odd way I think the margins being down was actually some really good news because you know one other key drivers and there was a huge demand for what we do that is so different than what anyone else does and it's the fact that we do.
Both digital and in person and share our cases in the quarter were up 18% and the costs associated with that.
From there we saw 10 wins come over from digital only competitors.
And if you think about it in the middle of Covid, we were able to compete with digital only competitors and now post Covid, we're able to easily compete as we had before with folks who deliver in person services, but we're really the only ones who do both of those so I'll take the short term cost increase any day because it does remind me.
<unk> of what we do and I do think it's going to play out in the long run and frankly I think those short term increases in cases will normalize and if they don't then we have an easy conversation with our clients around taking more pricing because they're just paying for the services. They get and then on top of that you know you.
A look at the software implementation costs that I know grille will talk about which is now expense than it used to be capital and then a one time thing around brands. So I just wanted to give you a little bit of my color before I turn it over to Greg.
That's good color. Thanks.
Yeah, Thanks, Steven so.
Stuff, what I would say is a it was really three main factors. The first one is pretty simple. So we spent about $1 million in the quarter on rebranding the work's done so that's not something that will reappear in our Q3 and beyond.
[noise] would've impacted the margin by 30 or 40 basis points.
So that was clearly nonrecurring the second item that I'll talk to as a as an accounting change and so.
You know what what this is is basically if you think of <unk>.
Integration costs associated with cloud based software.
So in our case.
Amazon connect Zee scalar these type of names.
We were doing work to configure and integrate into our ecosystem here previously the accounting rules.
<unk> latitude to either expense or capitalized.
We felt that because these had a future benefit that our policy was to capitalize which was clearly within.
The guidelines of the rules they clarified.
Wrote it and said you know if its integration costs associated with cloud base really the rationale is that you don't own the code and so that distinction.
Now you're no longer able to capitalize those costs. So in the quarter those would've been about $2 million give or take so brought the margin up by.
Call It 80 basis points.
And these types of items are going to continue for us I mean these were a good investments with good IRR ours and when we started the year with we thought they would be capital now their opex, but in terms of you know how we run this business and trying to create returns and do smart things that really has no impact whatsoever in terms of wear and accordingly, obviously the capex.
On the other side would come down by those amounts. It's just a question of where they appear in the accounts.
For the year. So this was we were doing a little bit more in Q2, so as I said it impacted about 80 basis points.
For the year, it'll probably be more like 50 basis points.
And.
What I would say is this will probably will always be spending on this type of expense. So in the longer run, it's probably something like that number maybe it's a you.
A little bit less than 50 basis points and we are on a fairly aggressive pasta pass to evolve our our tech stack into a more of a cloud type approach, but I mean, this is always going to be something that we'll continue to work on so I think.
That's more of a permanent thing, but again, it's just an accounting thing and then yeah I think Stephen talked a little bit this is.
Our mix of cases coming back and how we manage them and you know the mix of counselors in the way that in the modality that we're driving in that.
For about a $3 million a if I look at it in isolation and so that was bringing it up and there's obviously a you know 20 other puts and takes in there but.
As Stephen said I think.
We will continue to monitor this really closely I think.
The cases may subside, but I think are in the longer run if they if they don't you know it's a good thing and the services are proving to be very relevant in today's marketplace, and we have an ability to get pricing and the way I look at it is you certainly don't want it to go the other way where you know people are now utilizing our services even come up for renewal in the <unk>.
This goes down I mean this is the way we want us to go but that's something that we need to manage so that's a lot of stuff from their stuff hopefully that was a somewhat helpful. Yes.
Yeah, no that's great color. Thanks.
Thank you. The next question is from Etienne Ricard from BMO capital markets. Please go ahead. Your line is now open.
Thank you and good morning.
Okay.
It's great to see the new disclosure on.
B T.
With about $4 million in revenues in Q2.
How how much of that would be related to your initial government wins.
Our government contract wins in Ontario, and Manitoba.
How have you been able to scale this product over the past Oh for the past year.
Yeah, John It's Stephen here, obviously, a large piece of that is both the Ontario contract and the Manitoba contract. However, we are seeing every week and every month and throughout the quarter wins with them kind of two groups. So we're seeing wins with other organizations wanting to add ICB T.
Onto an EAP offering again selling it as a one off thing just confuses employees. So if you were able to do it as an add on as we talk about the continuum of care. That's very valuable. So we do see that coming into play. We also see that we're starting to get some winds down in the U S. As we rolled into the U S and the other exciting thing for me and this is very early on.
Is we're starting to get a lot of traction with U S health plans as they think about this as delivering solutions for folks coming in to those health plans, but again at this point in time, because a lot of those are ramping up and getting going the majority of it would be the government contracts that we have in place.
Okay.
Okay, Great and terms and congrats on the partnership with Microsoft.
What utilizations rates improvement have you seen.
From clients.
Or I guess I shouldn't say what what.
What utilization rate improvement are you expecting from from this.
Initiatives, you know integrating lifeboats platform onto teams.
Yeah, the shifts that I think we're on and it's a little bit of a longer term journey is rather than people looking at hey, how many employees went to see a counselor. The question that we should be answering is how many employees got the help they need it and that help could be I read an article about anxiety. So I don't need to go see it.
Counselor.
Or I'm on the recognition platform and I now feel part of the organization. So I don't need that help and support so we really need to start.
Thinking far more about.
How many people are we helping how many people are we reaching so we're starting to track all of that we're starting to provide that to our clients I and I think Microsoft the partnership will just ramp that up if you think about it.
I can tell you personally when I'm on teams and every month I get a report telling me how many quiet day as I had or how many uh huh.
How much I was on email after hours or things like that imagine if I also got some solutions and some ideas and we're gonna be able to provide that as part of the debt. So I think the the utilization that helped them to support will ramp up substantially, but it's going to be our digital delivery, it's not going to be as much of the in person thing. So it should help us both on utilization.
And our margins.
Okay and.
Increased demand for for.
For mental health resources how.
How are you thinking about scaling up your Inc.
Terminal counselor base relative to.
Extending the number of partnerships with.
Third parties.
Yeah. It's a great question. The first thing I would say is.
We are one of the few organizations that have really taken the approach of having a large bases of our own staff counselors and you know we've done that because we just have a firm belief that allows us to deliver better quality for our clients and frankly, we're also able to do it.
At a cheaper rate as a result of doing that with the demand for services going up we see it you.
You know back in the last quarter, we substantially updated our recruiting efforts.
And we are tracking on a regular basis, how many recruits we're bringing in every week, we're making a lot of progress against that and as we ramp that up we'll also have an improvement on margins because again, we're able to deliver those services way more efficiently through stuff.
But in the past quarter. It does take time for those folks to ramp up and everything so we see that improvement will take place over the next couple of quarters, but is a key area of focus and I believe a key differentiator for ours.
And could you remind us what is the difference in terms of the margin whether the services for them in house relative to.
Leveraging a third party.
And ships, Yeah, I'll give you a cost perspective, our cost is about a third less.
So we're a third cheaper by delivering through our own staff counselors, then we would be through using what we call an affiliate network.
Great all right well. Thank you for your comments thanks, Jim.
Thank you. The next question is from Graham Ryding from TD Securities. Please go ahead. Your line is now open.
Oh, Hi, good morning, good morning.
Just like to reiterate our the improved disclosure is definitely well received on our end much better.
That's my first question would just be on the on the I C. B T side.
It's definitely strong growth when we look at it on a year.
Year over year basis, both for the quarter and year to date. It did it I think it dropped quarter over quarter I'm, just wondering what are what drove that.
Yeah, and the easy answer on that Graham as the quarters last year, just become a little bit more of a difficult comparison, we want a lot of the government contracts a year ago. So in the first quarter, you did not really comparing year over year versus this quarter, where we're starting to.
Okay understood and then did I catch your comments correctly.
Understand that that Ontario contract with recently put up for RFP did I did I hear you correctly that you successfully renewed that contract.
Oh, that's right Graham so it's.
An extension of seven months.
Okay, great and if it's still a shared program or any details on that.
I believe you're sharing it before or have you got exclusive or is there still a share program going forward. Yeah. It's still share. So it's a it's 50.50 share with the same party that we've been sharing today. So no change in that regard.
Okay, and then in terms of new wins.
You made some comments I think last quarter you wanted to.
U S.
I see BT mandate you provided some comments I think about it.
Targeting U S. Health plans are you referring to the pipeline there or are you actually successfully winning a further mandates in the U S like in the quarter.
Yes, we had some wins in the quarter Gram and a we've got some health plan announcements are that should be coming out a little bit later, but we're just kind of putting the final touches on them, but we were.
Quite pleased with some progress we've made in the quarter.
Okay great.
And then my just my last question, just the Australia acquisition.
M G.
How much was that.
How much did that have like in terms of a revenue impact and does that get backed out when you sort of break out your organic growth rate.
Yeah.
Yeah, it's a true.
Looking out at your Grand So in the corridor it would've been.
You know give or take about 4 million in revenue.
Yeah.
Is that higher than expected or is that in line.
It's a it's a it's a little bit better than expected, but largely in line, but it's performing really well, we're super happy with it.
Perfect. That's it for me thank you.
Thanks Graham.
Thank you once again, please press star one on your devices keypad. If you have a question or comment. The next question is from James <unk> from National Bank Financial. Please go ahead. Your line is now open.
Yes. Thanks.
Really exciting stuff for the Microsoft partnership I think in terms of.
A new channel.
Obviously early days on that front.
But thinking longer term about this channel are there are there discussions or opportunities with other providers of teams alike universes and.
So other providers of App source.
Our cloud based software distribution.
Yeah, Jamie it's Stephen here I think yes on all fronts I think obviously.
Obviously, we will spend a lot of time and really double down on how do we fully leverage. This partnership that I think is an opportunity as I said to a win more and continue to improve our win rate, it's an opportunity to move more clients onto our platform as an opportunity to add on modules for clients as well when.
There are people are all in that system and I think it's also an opportunity to continue to improve margins with more digital delivery. So we will go down that route for sure. We're also excited around our outsourced in the fact that we've got our ability solutions an area on that platform, so small and medium size organizations Ah can pick up some.
Of our solutions are so I think it gives us a nice channel there and we are in you know we will continue to look for other partnerships that are similar to this.
But again I do think we should spend a fair bit of time, making sure we fully realize all the benefits from this just with the fact of 250 million people being on teams.
Growing at a substantial rate.
I appreciate it thank you.
Thanks, Jamie.
Thank you there are no further questions registered at this time I'll turn the meeting back over to Mr. Lip trap.
Thank you Laura in summary, we had a good quarter that has contributed to strong year to date growth I'd like to end by expressing my thanks to everybody on the call. We continue to appreciate your interest in our company and we look forward to other opportunities in the future, including these calls to keep you up to date on what we're doing to do.
Our growth and success as a business. Thank you.
Thank you. The conference has now ended please disconnect your lines at this time and we thank you for your participation.
Yeah.
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I'll say Hosni. Please also as you say.
Okay.