Q1 2022 Bill.com Holdings Inc Earnings Call

Assumptions prove incorrect actual results could differ materially from those expressed or implied by our forward looking statement for.

For a discussion of the risk factors associated with our forward looking statements. Please refer to the text in the Companys press release issued today and to our periodic reports filed with the SEC, including our most recent annual report on Form 10-K, and quarterly report on Form 10-Q filed with the SEC and available on the Investor Relations section of our website.

We disclaim any obligation to update any forward looking statements.

On today's call, we will refer to both GAAP and non-GAAP financial measures. The non revenue financial figures discussed today are non-GAAP unless stated that the measure is a GAAP number. Please refer to today's press release for the reconciliation of GAAP to non-GAAP financial performance and additional disclosures regarding those measures.

In addition, our acquisition of invoice to go closed on September one 2021, and therefore, our reported fiscal first quarter results include one month of Invoiced <unk> result at times. During this call we will discuss organic our stand alone results, which exclude invoice to go and also exclude <unk>, which we acquired on June one 2021.

To help listeners understand our organic performance now I will turn the call over to Renee Renee.

Good afternoon, everyone. Thank you for joining us today I hope that all of you are healthy and doing well, we kicked off our fiscal year with momentum in the first quarter. We delivered strong revenue growth required invoiced ago, and helped hundreds of thousands of businesses simplify and automate their operations. So they can focus on what they do best.

Our results demonstrate the strength of our organic business and the expansion of our platform's capabilities total revenue for the quarter increased 152% year over year the.

The Dotcoms organic core revenue growth increased 78% year over year, driven by strong adoption of our platform and payment solutions revenue from our divvy spend management solutions continued its trajectory of strong growth above 100% year over year.

Our performance in the quarter demonstrates the significant demand in the market for digital solutions to transform financial operations.

During the quarter, we acquired Invoiced ago, a leading mobile first solution.

The acquisition enhances our capabilities expands our Tam to include serving sole proprietors and gives us an international footprint with subscribers and more than 150 countries.

The acquisition will strengthen our two sided network by bringing advanced AI capabilities, including invoicing and payments to our network members.

I am excited to welcome Invoiced. It goes 100 person team to build Dot com, which includes team members in the Bay area in Sydney.

With the acquisition of invoice ago Dotcom ended the quarter with more than 350000 businesses on our platform.

Our vision is to be the all in one financial operations platform for Smbs.

We know that small and mid size businesses are looking for a single solution and we are uniquely positioned to meet those needs with our comprehensive AR AP and spend management offerings.

We are making it easier for companies to go digital realize efficiencies and have more time to devote to their true passion growing their business.

For example, Wilberg labs, a bay area based startup studio that has built and invested in 15 companies since 2016.

Turning to Bill Dot Com and divvy for Onboarding ease faster bill processing enabled by our AI technology and API integration with the company's ERP system.

To call Fury controller of Wilbur Labs said and I quote before Bill Dot Com, we would either do manual checks or wires from a bank account and collect approvals offline. Our process has been streamlined to cut time by at least 50%.

In addition, divvy is an awesome free and easy to use tool for all in one expense reporting that's out of the box ready to go and doesn't take a lot of setup time as a smaller M&A team. We do not have the time for a time intensive setup or integration.

Both dot com and divvy have allowed us to scale with ease.

Startup studio, we are constantly creating acquiring or partnering to launch new ideas. Thus.

Thus, having an all in one solution as our foundational system with easy customization offerings is ideal as we grow and launch new companies and quote.

Our platform enables businesses of all types to digitally transform their operations, including nonprofit organizations, where collaboration and automation are especially important.

For example, the Meridian Library district, which has five locations and serves the second largest city in Idaho uses both dot com and divvy as I've said before the Smbs in organizations that we serve act is the heart of local communities and this is a Prime example, the library district serves thousands of users has hundreds of volunteers and offers.

Many enriching programs for the community.

During COVID-19 they expanded their services to deliver books and PPE and re imagine their outreach programs to stay connected to seniors childcare centers and low income families.

Ginny Gerwig finance manager said and I quote, we used vodacom and Debbie and have been very happy the integration of both with Quickbooks online has streamlined our accounting process and reduce the time I spent processing payments and credit card charges.

Using both removes the need for process incentive input, while providing excellent transactional visibility and budget to actual information.

The Bill Dot Com and Divvy combination allows me to step into the role of Revere, which frees up my time to apply for grants that will benefit library programs and expansion.

And quote.

Since our founding we are partnering with the accounting firms to provide the best quality services at small and mid sized businesses expect from their most trusted advisors.

<unk> platform is the go to mission critical solution for accountants. It eliminates the manual aspects of their work, allowing them to focus on the strategic advisory services more than 5500 accounting firms use our platform to grow their practice and automate operations.

To gauge how bill Dot com helps them, we recently surveyed our accounting firm customers.

Based on more than 500 responses, we learned that approximately 90% of accounting firms believed that bill dotcom makes their firm more efficient and vodacom save them at least 50 hours of work per client every year and most importantly, they were likely to recommend dot com to their clients and.

An example of how accountants use our platform as you H Y a top 30 accounting firm in the U S.

<unk> Leverages dot com for their growing client accounting advisory services cash practice came polycarp, the firm's national cash practice leader said and I quote.

Dot com makes it easy to engage with our clients and provide them with a great experience with its intuitive and easy to use platform, we're able to help our clients save time and be more strategic dot com is a valuable component of <unk> technology stack and is integral to our growth roadmap end quote.

On our last earnings call, we outlined our top strategic priorities in fiscal 2022, which move us closer to achieving our one stop shop vision.

Our first priority is to integrate the go to market and product offerings of divvy, an invoice to go.

Our sales teams are driving strong organic growth of our solutions, while also cross selling divvy to build dotcom customers through in product discovery and personalized credit offers.

Our product teams are working on early integration features such as simple consistent navigation throughout both solutions single sign on and accounting software integration.

We are also working on longer term initiatives to provide a seamless platform experience, including integrated budgeting reporting and analytics.

Our second priority is to expand our payment offerings. We continue to see strong adoption of our virtual card in cross border payment solutions, which we attributed to three factors first building awareness through direct sales outreach and targeted marketing campaigns second promoting solutions prominently inside core product workflows and third.

Leveraging our homegrown network business directory to match card acceptance suppliers without going bill payments.

Our instant transfer solution is now widely available and we've seen good customer adoption demonstrating that businesses have a need to receive bounds faster.

When signing up to be in the network new members can choose instant transfer as their default way to get paid.

Early results are encouraging and we believe many network members will elect this option.

Our third priority is to scale, our relationships with our financial institutions and accounting firms.

We have developed a simplified version of our white label platform, which will be the default payment and invoicing solution for SMB customers. The top three U S. Bank. This bank is in the beginning stages of piloting this service and we will share more insight with you as we progress to general availability in calendar 2022.

Within the accounting channel, we recently made adding new clients to our platform easier and faster, which enables accounts to onboard them more quickly for.

For example, <unk> a top 300 accounting firm adopted the bill Dot com platform by leveraging our accountant focus features kittles Horton was able to create repeatable standardized workflows for their team and add nearly 100 clients out of the gate.

In closing, we are making great progress on building the all in one financial operations platform for Smbs of all sizes.

Our success is possible because of the commitment our 1500 employees have to each other and to our customers.

We continue to bring in top talent to our team, including New board members with extensive and diverse experience.

In Q1, we welcome Scott Wagner as a director Scott's experience building and scaling godaddy to serve millions of customers around the world will be invaluable as we expand our platforms capabilities and enter new markets.

All of us at <unk> Com are energized by what we are doing to help smbs.

Like to thank all of our employees partners and shareholders for supporting US on this journey and now I'll turn the call over to John to review our financials John Thanks.

Thanks, Renee today I'll provide an overview of our fiscal first quarter 2022 financial results and discuss our outlook for the fiscal second quarter and full year 2022.

As a reminder, today's discussion includes non-GAAP financial measures.

Please refer to the tables in our earnings press release for a reconciliation from non-GAAP to the most directly comparable GAAP financial measure.

In addition, the invoice to go acquisition closed on September one and therefore, our reported fiscal first quarter results include one month of invoice to go.

I will also provide insight about our standalone organic performance for the fiscal first quarter, which excludes divvy an invoice to go given that these acquisitions closed recently.

Our Q1 results exceeded our expectations across the board, including organic core revenue growth of 78% year over year non-GAAP gross margin over 83% and a non-GAAP net loss significantly lower than our expectations.

Our strategy to enable <unk> to maintain their strong momentum in the near term while at the same time investing in product integration and cross selling is paying off as reflected by divvy Q1, standalone revenue growth of 187% year over year.

We continue to believe we are in the early innings of a global digital transformation that is disrupting the legacy methods of managing the financial back office <unk>.

These trends show no signs of slowing as small businesses are increasingly embracing the need to evolve from analog paper based processes to digital solutions that simplify and automate their operations.

Our progress shows were successfully turning our investments into results, creating significant value for our customers and driving strong revenue growth.

Our $2 billion capital raise in September combined with our track record of product innovation and proven execution capabilities positions us well to capture the large market opportunity we are pursuing.

Turning to an update on our key metrics note that today, we are providing additional insights on bill dot com organic divi and invoice to go results for clarity given our recent acquisitions.

We expect to begin providing consolidated metrics later this fiscal year as we transitioned to managing one consolidated P&L.

We ended the fiscal first quarter with 126800, Bill Dot com organic customers, including 5600 net new customers in the quarter.

We also had 13500 spending businesses using our debit card solution representing growth of 2800 net new adds in the quarter and 226000 subscribers using invoice to goes a solution for the month of September.

Looking at payment volume for the quarter, we processed 47 billion and organic TPB, representing 63% year over year growth, we've experienced significant organic TPB growth in recent quarters, driven in part by new customers scaling faster on our platform and increased payment activity from our customer base, including from larger mid market business.

Ms.

Looking ahead, we expect lower TPP growth rates as we're assuming the seasonal spike in TPB, we experienced in Q2 last year doesn't occur this year.

During the quarter, we also processed one $5 billion in card spend from Dubai spending businesses, which is an increase of 160% from last year and nearly $100 million of PPV from invoice to go as customers.

While invoice goes payment volume with small customers leverage the solution to send more than $2 5 billion in invoice volume in the month of September which represents a significant opportunity for us to drive greater adoption of payments.

Moving on to the number of transactions, we processed $8 8 million payments on the Buildout com platform in Q1, reflecting 35% year over year growth. We also processed $4 6 million debit card transactions and over 100000 invoice to go payment transactions.

Now I'll review, our reported Q1 results.

Total revenue was $116 4 million up 152% year over year, which includes $1 3 million of revenue from invoice to go for the month of September.

Core revenue, which represents subscription and transaction fees was $115 6 million growth of 164% year over year.

Organic build dot com core revenue growth accelerated to 78% year over year compared to 73% growth last quarter in.

In addition, we experienced very strong card revenue growth from <unk> of 187% versus last year.

Subscription revenue increased to $35 million up 43% year over year, driven by an increase in the number of businesses using our platform expansion of organic <unk> and fees from invoice to go subscribers.

<unk> com organic subscription revenue growth was 39% year over year, which accelerated from the prior quarter driven mainly by a slightly larger average customer size due to our success with attracting and growing mid market customer relationships.

Subscription revenue includes $1 million from invoice to go for the month of September.

Note that the majority of invoice to grow revenue is from subscription fees on a per month per user basis with minimal transaction fee revenue.

In addition, approximately 67% of subscription fees are from annual contracts with customers invoice to go subscription revenue reflects adjustments from the acquisition purchase price accounting for deferred revenue on annual contracts that existed as of the acquisition date.

The annual contracts were re measured to reflect their current fair market value and the impact to revenue from the adjustment was approximately $2 million in Q1 and will be approximately $10 million for fiscal 2022.

As annual contracts renew over their regular course, we will see an increase in revenue based on the full annual value.

Without this accounting adjustment invoice to go subscription revenue would have been approximately $3 million in September.

Transaction revenue increased to $80 6 million up 319% year over year, driven mainly by interchange revenue from our debit card solution payment mix shifts towards AD valorem products and strong TPB growth.

Bill Dot com organic transaction revenue growth was 127% year over year.

Debbie transaction fee revenue for fiscal Q1 was $36 6 million.

As a reminder, the majority of revenue from our Divvy solution is transaction based with minimal subscription fee revenue.

Turning to gross margin and our operating results for Q1 non.

Non-GAAP gross margin was 83, 3% up from 79, 7% last quarter, driven by a higher mix of interchange and variable transaction revenue.

As a reminder, we manage a portfolio of payment offerings, each having a different gross margin profile and in the first quarter. Our gross interchange revenue was above our expectations, resulting in a higher non-GAAP gross profit margin.

In the near term, we expect our non-GAAP gross margin to be slightly above the range of 77% to 79% provided previously.

Non-GAAP operating expenses were $108 1 million, an increase of $39 5 million from Q4.

R&D increased $8 million from Q4, as we are investing to enhance our platform integrate our acquisitions and scale, our relationships with financial institutions and payment processors.

Sales and marketing increased $23 1 million from Q4, reflecting increased go to market expenses and a full quarter of card reward expenses for Debbie.

G&A increased $8 5 million from Q4, due mainly to the inclusion of a full quarter of <unk> expenses.

Non-GAAP operating loss was $11 $1 million and our non-GAAP net loss was $14 1 million or a net loss per share of <unk> 15.

Based on $95 9 million basic weighted shares outstanding.

Our loss profile was significantly better than our expectations due primarily to strong revenue and gross margin results.

Now moving onto our balance sheet cash cash equivalents and short term investments at the end of Q1 were $2 8 billion up from $1 2 billion in Q4.

In September we raised approximately $2 billion of new capital through a concurrent offering of $1 4 billion of common stock and $575 million of convertible notes due in 2027.

Net proceeds from the two transactions totaled approximately $1 9 billion. After offering costs also in September we used approximately $144 million in net cash for the acquisition of invoice to go.

We are well capitalized to invest in scaling our business given the many growth opportunities we see.

As of September 30, we had $2 4 billion in customer funds on our balance sheet, which was up 10% from the end of Q4 due to the significant increase in TPB, we processed during Q1.

Now moving onto our financial outlook for the fiscal second quarter and full fiscal year 2022.

Note that we are providing additional disclosure on bill dot com organic revenue growth given recent acquisitions on a go forward basis, we don't expect to provide details of bill Dot com TV or invoice to go separately as we are managing one consolidated business.

We are investing to capture the significant market opportunity and extend our leadership position in the SMB market.

Our momentum creating value for smbs with a greatly expanded set of features gives us confidence in continuing our bias towards investing for growth.

There is significant uncertainty regarding the next phase of the pandemic and many businesses are experiencing supply chain challenges.

And while we haven't seen any material impact to our business to date, we are monitoring the situation closely.

For purposes of our fiscal 2022 outlook, we have assumed that there won't be a material negative impact to our business from macroeconomic or supply chain issues faced by our customers.

For fiscal Q2, we expect our total revenue to be in the range of $130 million to $131 million, which assumes organic core revenue growth of approximately 60% for bill Dot com on a standalone basis.

We expect revenue from invoice to go to contribute approximately $5 million, reflecting the accounting adjustment I mentioned earlier.

In terms of operating expenses, we expect to increase investments associated with R&D for our platform integration with Devine invoice to go scaling activities with financial institution partners and payments innovation.

In addition, we expect to Opportunistically accelerated investments in our joint go to market initiatives.

On the bottom line for Q2, we expect to report a non-GAAP net loss in the range of $18 million to $17 million and a non-GAAP loss per share of <unk> 18 to 17.

Based on a share count of $102 8 million basic weighted shares outstanding.

Turning to our outlook for fiscal 2022, we expect total revenue to be in the range of $538 million to $541 million with $24 million from invoice to go.

This assumes organic or Standalone bill Dot com core revenue growth of approximately 55% in fiscal 2022.

On the bottom line for fiscal 2022, we expect to report a non-GAAP net loss in the range of <unk>, 81% to $78 million and a non-GAAP loss per share of 80% to 77.

Based on a share count of $101 9 million basic weighted shares outstanding.

We have been driving the digitization of the financial back office for the past 15 years. As we look ahead, we have never been more excited about the large market opportunity. We're pursuing we were built for this moment in time and we're at the center of a massive transformation that is happening in the way businesses run financial operations.

Smbs are increasingly realizing that investments in digital capabilities for the financial back office are mission critical.

With our leadership position in the SMB market and the expanded reach and capabilities of our <unk> and invoice to go solutions, we are well positioned to address a large and growing Tam.

We are building the all in one financial operations platform for entities ranging from the smallest of businesses to midsized companies. We are confident that we can use this opportunity to drive sustained long term revenue growth by leveraging our track record of innovation large base of engaged smbs and massive network.

I'll now hand, the call back to Karen.

Thanks, John before opening up for Q&A, we request that you limit yourself to just one question. So we have enough time to get to everyone on the call. Today. If you have a follow up question, we ask that you jump back in the queue.

Operator, we are now ready for questions.

Your first question comes from the line.

Samana with Jefferies.

Hi, good evening, Thanks for taking my questions and congrats on another blowout quarter.

So maybe Renee I wanted to ask you when the company acquired divvy. It at about 7500 customers, you've almost already doubled that I wanted to maybe understand how much yet.

It's crazy given that they are a standalone company for many years before that how much of that is the cross selling motion or just customers even associating the two together from a brand perspective, that's driving that strong momentum for Debbie.

Hey, guys good.

Good to talk to you. So I would say first of all that our relentless focus on helping smbs is paying off across the board across all three companies Smbs are embracing digital transformation and frictionless payments and I think that some of what we're seeing and we're uniquely positioned across all the assets that we built and acquired to really solve the problem for smbs.

And so what youre seeing to date is us actually all executing on our organic growth strategies, we have started to introduce cross selling opportunities to the customers' bill Dot com.

Those.

Kind of early days on that so all of the successes that F&B is want digital transformation, they want frictionless payments they want it to be easy.

This film and time I think the company has been built for this and we're excited about being able to serve and support smbs and their passions and as they move forward in the business.

Great and I apologize can you answer breaking the rules right away, but John I have a follow up for you.

TBB per customer is it's up more than 30% year over year, and that's just really impressive considering what's going on kind of more broadly in the world is that more of a sign of larger customers signing up with bill or just different seasonality that 30% plus growth in average TPB pro customers just really impressive.

Great I say tracks and across all segments and across all channels right. So we've been really really helpful and kind of supporting customers and and really meeting their needs and so the the growth that we're seeing you know I think is somewhat of a pandemic you know.

Tailwind that we've talked about but it really is this this move to digitization digital transformation and frictionless payments, So and apologies I think I got your name wrong, sorry, I'm just looking at somebody named in front of me, but there and thank you for the question.

Your next question comes from the line.

Piper Sandler.

Good afternoon, and could you be impressed here with with the momentum in the business. My one question I I wanted to go back to Divvy and and obviously this is the first card offering that you have there is a big gap between the 126000 customers that bill Dot com.

Has the 13500 customers that have an hour debit card you know Rene and your your opening remarks, you did talk about a handful of customers that are using bowl. So.

Cross the too.

Software experiences that a customer might have as well as the accounting software integration that that will drive more synergies and more opportunities to go forth. So the teams are busy working hard on that right now and we are confident that we'll be able to get that to market and be able to start understanding what else we need to do to drive the cross sell that we think is ultimately.

A part of the business.

Your next question comes from the line of Josh.

Josh.

D C M.

Thank you team up for taking the the question really appreciate it and John Thank you for the disclosure Ah very clear.

Back to the system of your comment on mid market. It seemed like that was.

An area, where you had quite good momentum this quarter, perhaps was the source of upsides or maybe just give us a little update their about the momentum and and where do you see that opportunity headed thank you.

Sure well. Thank you Josh we've been focused on understanding all segments of the customers you know that we serve and across all the channels and one of the things. We started saying you know probably a couple of years ago. We started focusing realizing that we have a lot of mid market companies that were coming to us and so we have you know fine tune the sale.

This process, if you will and they go to market processing me well for the organic business. I think you know divvy naturally was kind of already in a larger customer segment and so as as we have continued to scale and grow the businesses that is driving some additional T. V. V. If you will because those customers are larger and that helps the <unk>.

Business as we add add warm products that obviously helps the business. So you know the <unk> I would say that the the the technology enables businesses in a way that they they really need and yeah, maybe mid American companies are a little bit more ready to adopt but we see it across all segments and I'll and I'll vertical.

<unk>.

Uh-huh.

Our next question comes from the liner Koski Thomas Research.

Hey, good afternoon, everyone thinks thanks for taking the question I just wanted to dig into invoice to go a little bit I think most of this businesses is software more than 90% and I just wanted to ask about the the payment side of the business and I I think I'm going to go with only processing a billion of the 25 Bill.

<unk>, an invoice activity so.

Strong one for you Renee you talked about the joint White labeled solution, where they are in a T. Does does it give you become part of that white label solution going forward. Thanks.

Thank you Scott and I'll answer the second question and let John take the first one.

When we did the deal with both invoice to go and Debbie.

It really gets back to this one platform mentality of the all in one solution for Smbs and we believe thats across all channels and across all segments. So it is going to take time to obviously make those integrations happen. So it's easy and our partners will have the option to kind of opt into that capability, but it is something that.

We believe in and something that we're going to continue to work hard to understand their needs as well as to meet the integrations. So easy that it's hard to refuse so Jon I'll, let you take it from there sure on the.

Scott on a quarter to quarter increase in sales and marketing expense. The vast majority of that is driven by the inclusion of <unk> for a full quarter and then invoice to go for the one month.

Consolidated their marketing programs to build dot com marketing programs. We continue to have great unit economics, and customer acquisition efficiency and feel good about how we're set up combined across all of the solutions to continue that track record.

Okay.

Yes.

Your next question comes from the line of Matt Vanvliet with BT I E.

Yes, thanks for taking the question.

Great job on the quarter I guess looking at some of the bank partnerships I know theres been a lot going on since you announced some of the more recent updates on those but wanted to maybe get an update in terms of how some of those are ramping.

And are all of the products on each of those now generally available or is there still some development time on a couple of them.

Thank you Matt.

Always working with our partners to understand how we can accelerate adoption across their base and so I would say.

The example of our this disclosure we had on the top three bank in that being in pilot.

Be generally available across the entire business.

I have in calendar 'twenty two that's all stuff that is super important, but I would say every bank has.

Specific conversations and discussions with our teams about how to drive more adoption because what they find is that their customers love. It customers end up saving time, which we give the customer quotes on that but more importantly, the banks have more insight into how the customers are growing and using the business and it's kind of back to Scott's question, just one of the things that we're excited.

With the other products that we can offer the financial institutions over time is to really help them take advantage of the the one stop shop that we are building and will continue to build.

Thank you.

Thank you.

Your next question comes from the line of Brian Schwartz with Oppenheimer.

Yeah, Hi, Thanks for taking my questions. This afternoon I just got two on in <unk>.

Voice pick out one real quick one those quarter million plus subscribers just wondering what percentage if any are already on the <unk> dot com platform or if it's just all Greenfield and then the second question I wanted to ask you about invoice to go you mentioned that they are in 150 countries and it sounds like that's pretty much a worldwide.

Just wondering does that accelerate how you think about penetrating the global SMB market.

<unk>.

Thanks, Brian Great question, and when we look at.

It seemed like a pretty straightforward calculation and analysts could make their own assumptions on payment sources and how that would go into the take rate broadly speaking how should we think about the impact of the take rate now do.

Due to the acquisitions of Divvy, and then and invoice to go just kind of thinking broadly about what those big moving pieces are and how they affect the numerator and denominator here.

Sure Thanks, John I'll take that.

Yes, we have had significant expansion in our take rate as you defined it.

Since since the IPO as we've seen a pretty.

Pretty steady progress with a changing payment mix more and more adoption of these AD valorem priced products that increases our transaction revenues and I'd say the divvy card product.

Continues that trend it improves upon our monetization because they're spending businesses. The gross fees that we receive on those transactions is more.

Much much higher than average bill Dot com.

Thank you Joseph.

We don't look at M&A as a discrete opportunity from an investment perspective, we think about investing across the entire business and ultimately the opportunities.

It can be adjacent which could be through acquisitions or can be internal some of the adjacencies that we think about which we have been working on for example is extending and expanding our share of wallet by offering payment products that continue the move to frictionless payments for Smbs.

And we will continue to do that there's lots of ways to innovate there others that are maybe a little bit more adjacent that could be a build by partner would be working capital like you talked about we think that's a very interesting area for businesses they need the ability to be able to make extend as well as receive credit.

And so that's an opportunity for us and then ultimately we do look at HR and payroll is again part of the overall one stop shop, so lots of ways to kind of think about where we can extend but first and foremost we're going to continue to focus on making the three businesses work together as one and to have the.

One stop shop that we've been building over the last decade or more.

And we have time for one more question and your question comes from the line of Andrew <unk> with <unk>.

M D C.

We're off to a strong start in the new fiscal year and looking forward to communicating our progress as we pursue the tremendous opportunity ahead of us. Thank you and have a great day.

Ladies and gentlemen.

Today's conference call.

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