Q3 2021 Deluxe Corp Earnings Call
Ladies and gentlemen, thank you for standing by and welcome to the Deluxe third quarter 2021 earnings Conference call. At this time all participants are in a listen only mode and today's call is being recorded.
We'll begin with opening remarks and introductions at this time I would like to turn the conference over to your host Vice President of Investor Relations. Tom Morabito. Please go ahead.
Thank you operator, and welcome to the <unk> third quarter 2021 earnings call. Joining me on today's call is Barry Mccarthy, our President and Chief Executive Officer, and Scott <unk>, Our Chief Financial Officer at the end of today's prepared remarks, we will take questions before we begin and as seen on this slide I'd like to remind everyone that comments made today regarding management's intentions projections.
<unk> estimates or expectations about the company's future strategy or performance are forward looking in nature as defined in the private Securities Litigation Reform Act of 1095. These comments are subject to risks and uncertainties, including without limitation risks related to Covid. The risks at the company's recent acquisition of first American payment system or any other acquisitions.
Does not produce anticipated results or synergies and the risk that any future acquisitions or divestitures will not be consummated any of these risks and uncertainties could cause our actual results to differ materially from our projections additional information about factors that may cause our actual results to differ from projections is contained in our Form 10-K.
For the year ended December 31, 2020, and in other company SEC filings on the call today, we will discuss non-GAAP financial measures, including adjusted EBITDA and free cash flow and our press release or presentation and our filings with the SEC you will find additional disclosures regarding the non-GAAP measures, including reconciliations of these measures to the.
Most comparable measures under U S. GAAP now I will turn it over to Barry.
Thanks, Tom and good morning, everyone. We're pleased with our ongoing transformation into a trusted payments and business technology company in fact, our payments business inclusive of our first American acquisition now rivals are legacy Chuck business in revenue scale make no mistake.
<unk> is a payments company.
Major story. This quarter is the continued success of Firstmerit, Kevin a recent acquisition, which delivered 12% year over year revenue growth exceeding our expectations, our deep trusted customer relationships, which we call. The deluxe Halo is indeed real.
And has resulted in first America growing faster than its historical pace first American is leveraging the deluxe relationships and the powerful sales machine. We built also a major story. This quarter is the ongoing success of our sales machine and one that deluxe model, which continues.
To deliver a strong performance overall.
<unk> with the success of previous quarters.
Many new deals in the quarter further highlighting our ability to cross sell more products and services to our existing customers. We will provide specifics by business in a moment. The key takeaway here our sales machine has enabled us to outpace secular decline without the bench.
The fit of acquisitions for two consecutive quarters something that has not happened for many years, we see this as a critical milestone in our transformation for the business overall, we delivered sales driven revenue growth of just over 2% for legacy locks and 21%.
Growth, including first American payments cloud and promotional solutions, all experienced solid revenue increases checks declined slightly more than 2% better than our longer term expectations. Thanks to ongoing market wins payments performance was driven by the acquisition of <unk>.
<unk> America.
Also saw nice growth on our HR payroll and digital payments businesses cloud growth was driven by our data driven marketing business promotional solutions benefited from the implementation of key wins from earlier in the year and checks performance was driven primarily by business checks and new competitive wins the third.
Quarter results are further evidence that our one deluxe strategy is working and we're looking forward to continuing this momentum into the fourth quarter and into 2022 before I go into the highlights for the quarter I want to first thank my fellow <unk> for their continued hard work and commitment to our customers.
Our transformation into a leading payments and business technology company is progressing very well on the positive results. We're reporting today would not have been possible without their deep loyalty and continued dedication to our company and our customers success now to the consolidated high.
<unk> from the quarter revenue was $532 million up 21, 1% year over year not included the impact of first American revenue was up two 3% adjusted EBITDA margin was 19, 3% and was impacted by product mix.
<unk> inflation lingering COVID-19 impacts on other items during the quarter just as we expected adjusted EPS was $1 10 per share, which Scott will provide more details on intermodal during the third quarter. We also paid down $58 million of debt, which is evidence of our continued financial discipline.
Upland and commitment to maintaining a healthy balance sheet, despite COVID-19 and other macroeconomic factors currently at play moving onto some segment highlights.
Our payments segment grew 115% year over year, driven by the performance of first America exclude.
Excluding first American revenue increased 4% with growth in our other major businesses, particularly payroll and HR, our payables as a service offering which includes our deluxe payment exchange and medical payment exchange are seeing strong growth, although ramping a bit slower than expected, but still nearly double.
Year over year, we continue to be excited about their prospects. Let me go further our first American.
American <unk> sales pipeline has more than doubled since we closed the acquisition on June one.
Similarly, our deluxe pipeline, hence growth versus like the cross sell opportunity that we knew we would generate by selling products such as HR payroll payables and receivables to the first American base within payments the power of one deluxe as evidenced in our recent deal with Zions Bancorporation a longstanding.
Deluxe clients with more than $85 billion in assets and operations at 11 Western States Zions expanded its relationship with US to include our digital disbursement product. The deluxe payment exchange, we greatly expanded our <unk> platform capacity for about 50000 transactions per day.
Two 1 million per day this capacity expansion enabled us to find and deliver our first clients in the class action litigation settlement industry declined <unk> <unk> instead of paper checks to distribute settlement funds to approximately two and a half million.
Hey, he's over just a few days.
The PX save the client about 75% versus mailing a paper checks the customer value proposition is compelling and why we had a number of major signed new clients in the implementation queue positively impacting future periods payments also.
Recently added the better business Bureau of Minnesota, and North Dakota to our payroll and HR solutions platform, whereas the Luxor bucket. These services to the better business bureaus 7000 members next cloud solutions cloud solutions had a strong quarter improving 9%.
Year over year importantly, excluding business exits from 2020 clouds growth would have been roughly eight teen percent cloud.
Cloud performance benefited from positive impacts of a recovering economy and our data driven marketing business. Our DBM that momentum continued from the second quarter further lower interest rates drove increased demand among several of our large financial partners. Another key win with zions within our cloud business.
Our cloud and promotional solutions teams worked together to develop a customized demand generation platform volume now re sells directly to its clients by listening to zions needs. We harnessed the power of one deluxe to develop a complete solution to drive their success.
As we've said in previous quarters, our strategy and our data business.
<unk> beyond our core banking and mortgage verticals, we also announced our successful entry into the regulated utilities market in the second quarter and expanded further in the third quarter with our first retail and telco clients.
<unk> launched a pilot with a top five life insurance carrier now onto our promotional solutions segment promotional solutions improved over 4% year over year positively impacted by the PNC deal, we announced earlier in the year expanding our relationship with the eighth largest commercial bank in the U.
U S deluxe is providing multiple products to P&C, which has been ramping up over the last two quarters relationships such as these are key components of our cross sell story that is a great example of key wins quickly converting to revenue. This quarter <unk> also added one of the largest health care.
In the U S towards the Lux brands onto our platform. We previously mentioned the deluxe brand center success, managing branded merchandise consumer normal business operation for financial institutions and real estate companies. In this case, we're pleased to add an entity with more than 35 hospitals and seven <unk>.
<unk> plus medical offices across the country that will be using our technology to manage branded merchandize consumed and hospital operations.
Branch Center strategically shift our business from a onetime sale to a re occurring revenue bonds. Finally, our highly profitable cash generating checks business declined just over 2% year over year, which is better than long term industry trends. The performance was largely driven by solid growth from business checks.
And while the sector is in secular decline, we continue to secure competitive wins, helping to mitigate those impacts in fact year to date when in competitive situations. We win the business three out of four times and we expect that this success to continue onboarding wins and checks positively.
Pack of the third quarter, including two of the nation's top 25, five accompanied by continued success in retaining our top tier clients during the quarter, our product superiority of the strength of our balance sheet enable us to expand market share and protect our outstanding cash flow as a reminder.
<unk>.
<unk> play a very strategic role for deluxe delivering meaningful low cost leader driving our cross selling engine now, including first America. In summary, we're pleased about our transformation progress into a payments company first American is winning on the deluxe Halo is real the company overall at all for <unk>.
<unk> are performing well and consistent with our guidance. We are optimistic about our fourth quarter and 2022 prospects are cross selling and sales momentum is leading to a strong year for sale in our third quarter results demonstrate the durability and strength of our company despite lingering effects of Covid and inflationary pressures.
Now I will turn it over to Scott, who will provide more details on our financial performance.
Thank you Barry and good morning, everyone. Let's go through the enterprise highlighted the quarter before moving on to the segments. We posted total revenue of $532 $1 million of 21, 1% year over year, not including first American revenue came in at $449 $6 million of two 3% year over year, we reported GAAP net income of $12.
$5 million 28 per share in the quarter GAAP net income was impacted by $11 9 million and acquisition amortization related to the first American acquisition compared to the prior year quarter. Adjusted EBITDA came in at $102 7 million, while adjusted EBITDA margin was 19, 3% as a reminder, Q3 2020.
Benefited from the temporary implementation several COVID-19 related cost savings initiatives and other one time items. In addition earnings were impacted by planned technology investments inflationary pressures product mix, some onetime items as well as additional interest expense, resulting from the Firstmerit acquisition. We do anticipate these inflationary pressures will be partially offset by pricing.
Increases going forward I should also note that income from first American positively contributed to the quarter. Adjusted EPS came in at $1 10 down from $1 47 in last year's third quarter now turning to our segment details payments grew third quarter revenue of 114, 6% year over year to $163 million largely it.
Acted by the acquisition of first American sales driven growth for stand alone deluxe.
<unk> first American payments revenue increased four 2% year over year. In addition to first American strong performance that Barry mentioned, we experienced growth in our core payments business, including first American adjusted EBITDA increased 89, 2% in the quarter and adjusted EBITDA margin was 19, 7% down 270 basis points due to the increase.
Investments in sales.
Sales and marketing as well as inflationary labor cost in our lockbox.
We anticipate the price increases will partially offset these pressures in future periods.
With the addition of first American for payment segment has more than doubled in size as Barry mentioned. This is an important milestone in our transformation to becoming a payments company longer term, we expect payments segment to deliver a high single digit revenue growth rate you expect adjusted EBITDA margins to remain in the low 20% range for the full year cloud solutions had another strong quarter segment.
Revenue increased 9% year over year to $69 $5 million in the quarter and increased two 1% sequentially from Q2 as Barry mentioned in his remarks as businesses exited during 2020 are excluded cloud grew 18% Bob is strengthened by our data driven marketing solutions, which continue to see a solid rebound with a recovering economy and increased margin.
Expense, we signed several new DBM clients during the quarter that will benefit us in future periods and Q3 clouds adjusted EBITDA margin improved 160 basis points versus prior year to 27, 3% driven by strong cost management.
We expect the pace of customer activity to moderate in the fourth quarter of 2021, and we continue to expect to see mid single digit revenue growth on a reported basis. We also expect cloud margins to remain healthy in the low to mid 20% range.
Promotional solutions third quarter, 2021 revenue was $133 million or four 3% year over year adjusted EBITDA margin for the third quarter was 13, 6% down 360 basis points, largely due to product mix and supply chain disruptions as well as labor and materials inflation, we're putting pricing initiatives into effect.
Does take time to implement we anticipate the margins will improve in subsequent periods.
We anticipate in 2021 on top line growth in the low single digit range largely due to the continued impacts of COVID-19 as well as improved adjusted EBITDA margins in the mid teens due to the value realization initiatives partner consolidation and cost actions taken in 2020 and the early part of 2021.
Third quarter revenue declined two 3% from last year to $172 million and strengthen our business checks a new competitive wins helped moderate the anticipated secular declines in the business.
With our long term expectations for checks third quarter adjusted EBITDA margin levels were 44, 9% down 340 basis points. This was largely driven by onboarding, new customers and inflation. Once again, we expect selective price increases to partially offset these added costs going forward.
Based on higher renewal rates and new business won in 2020 and year to date 2021, we anticipate checks to decline the lucent digits for the full year, turning now to our balance sheet and cash flow. We ended the quarter with net debt level of $1 $66 billion.
Up from $716 $9 million last year due to the first American transaction and poorly in the quarter, we returned $58 million of debt another demonstration of our financial discipline and commitment to delever, while our net debt to adjusted EBITDA ratio was unchanged from the second quarter at four three times, our long term strategic target remains approximately <unk>.
Pretax free cash flow defined as cash provided by operating activities less capital expenditures to $30 9 million in the third quarter of $11 $6 million from the second quarter of 2021, but down from $41 $6 million from last year throughout the decrease was primarily due to higher capital investments, we do expect free cash flow.
To improve over the next couple of quarters, which will further assist in our deleveraging efforts. Our board approved a regular quarterly dividend of <unk> <unk> per share on all outstanding shares.
And will be payable on December six 2021 to all shareholders of record on November 20.
2021, we did not repurchase common stock in the third quarter as a reminder, our capital allocation priorities are to responsibly invest in growth their dividend reduce debt return value to our shareholders. We will evaluate future repurchases on an opportunistic basis, turning now to guidance today, we are affirming our 2021 expectations as a reminder.
The guidance includes first American assumes a continued economic recovery in the subject to among other things the macroeconomic unknowns associated with the COVID-19 pandemic, including the Delta variant as well as the anticipated continued supply chain constraints labor supply issues and inflation for full year 2021, we continue to expect the following revenue growth.
10% to 12%, excluding first American revenue growth of zero to 2% adjusted EBITDA margin between 20, and 21% capital expenditures of $95 million to $105 million and an adjusted tax rate of approximately 25% to summarize I am pleased with the third quarter results. We are executing on our one deluxe strategy and believe the company is.
And solid momentum and we expect to continue into the new year. Operator, we are now ready to take questions.
Thank you we will now begin the question and answer session to ask a question you will need to press star one on your telephone to Whit.
Tomorrow. Your question press the pound key please standby, while we compare to Q&A roster.
Your first question comes from the line of Matt <unk> with Cowen Your line is open.
Hey, Thanks, guys. Thanks for taking the questions and congratulations on the strong quarter.
Let me see if I can just sort of quickly ask a couple of different questions here first on the.
Payments side with with first record did you say that first American itself grew 12% year over year in the quarter and if that is the case that could you talk about to what extent does that growth reflects the benefits of cross selling or is it is it really just that was.
The pace it was growing at in the cross selling benefits if any are still sort of on the pump.
Lance, Yes, thats correct on the 12% year over year growth I'll turn it over to Barry to talk about the impact from the deluxe Hello, Good morning.
And Lance and we do think this concept of the deluxe Halo, we believe its very real we can see it in the pipeline that we can see it in closed sales.
And bank partner not only the bank partner list of potential customers, but also closing some bank partners, So and we do believe that.
The 12% <unk>.
Secondly above their historical rate at or even above there the trajectory right. So it's great execution by first American for sure. But there is also the deluxe halo of bringing additional leads to that business that is helping us, but we think there is a R.
Great great. Thank you.
The payments segment away from first American and just sort of a general question that I get to what extent if any does growth in payments necessarily reflect cannibalization of the checks business. In other words are your customers to some extent simply shifting their business away from paper checks to whether its ACTH payments or <unk>.
Some other electronic digital format or are they two unrelated kind of concepts.
Two part answer there Atlanta first of all lets us.
Understand that the checks business continues to go forward because there are no viable substitutes for the vast majority of business checks that are written today there are billions of them.
Second our payments business non first American payments business has a couple of different aspects. One is our HR payroll business has really nothing to do with checks.
Our receivables as a service has to do with digitizing and.
<unk> rating, the order to cash cycle and getting cash application happened more quickly.
The third business that you did hear us talk about in our prepared remarks was our VP accurate deluxe payment exchange and in that business. We are replacing checks, where we are instead of mailing a paper checks. We are sending an electronic version of a checks often with a payment advisor remittance invited to go along with it.
We particularly like that business because it has very attractive margins and as I told you here that business almost doubled in size in the third quarter.
And it is a very large market opportunity to convert some of those checks. The other thing we really like about it is that many of those checks that we're converting our not checks that we would have had an at bat at printing.
We are in many ways cannibalizing competitors print product.
That is all net positive new business that has great margin associated with that are growing at a rapid pace and in the case, where we are cannibalizing checks at least 50% chance of coming from somebody else's business not ours.
Perfect. Thanks.
<unk> side and I know you said it's.
A couple of times, but I just want to make sure im understanding that properly that growth what does that double what you reported had it not been for business is business exits in 2020 are you referring to basically businesses that failed in 2020 due to COVID-19 is that.
There was it went out of business.
We have some specific business lines that we exited completely and sold.
Hi.
We're basically removed from from.
From the from the comp base. If you will that were accounted for roughly $20 million a year in sales. So it is not COVID-19 impact. These are business lines that we just full stop exited.
Right. Okay. So so that the underlying I guess, it's fair, though to say that the underlying trend of the businesses that you've kept on a go forward basis are growing at 18% of that's the point that you're making.
Okay, one more from me I think that is.
On the checks side again, the market share gains continue to drive better results certainly better than we were modeling and I am wondering did you win any new business in the third quarter or is this just the sort of the continued impact from the big win that you've discussed that occurred earlier in the year and I guess related to that I'm wondering do you do.
We need to be thinking about tough comps next year as you lap some of these new customer wins on the checks side.
So again, a two part answer yes, we did have additional wins in the second I'm sorry in the third quarter, but we also did implement a number of the wins begin implementation of a number of wins from previous periods.
That helps us for the next few periods for sure.
Have more deals in the pipeline that we would hope to close that hopefully can moderate future period.
Future periods out periods like we're seeing in the current periods.
But we're very pleased and as we said when we're in competitive situations, we're winning in a 75% of the time, which is we think good news on the stability and the long term.
Capability for us to continue to generate cash out of checks.
Okay, great. Thanks, guys I'll pass the baton.
Your next question comes from the line of Charlie Strausser with CJ Ann Your line is open.
Hi, good morning.
Early morning.
Hoping to get some high level thoughts on 2022, if you could share with us just.
Just some introductory thoughts there.
So look.
We're not going to issue guidance for 2022 today, we'll be talking about that.
Q4 release, but were certainly encouraged by momentum in the business that we see.
The sales driven growth that Barry referenced in his opening comments.
Something that we can continue into the future along the same lines that we certainly had some.
Some some noise in the quarter as compared to Q3 of 2020. This year. So we think normalizes and we get back to those run rates in future periods.
Consistent with the guidance that we've issued for this year.
And so we feel we feel confident about the results, we're seeing and the momentum in the business.
That's helpful. Thank you and then just looking at the gross margin in the quarter kind of down.
A meaningful amount year over year I know you.
Some thoughts on that in the press release that you, maybe a little bit more color as to what what drove the lower gross margin in the quarter.
Yes look I think.
A lot of talk in the market around inflation and it sets on.
The overall economy that we're certainly not immune to that we had meaningful inflationary effects on our business think about the physical operations in physical parts of our of our business, where we are running.
Labor and a lot of our facility costs in our supply chain.
Material input costs that go into the promo business as an example, we saw those pressures that hit us in Q3.
I'm sure I'm going to continue at the same level of strength that we're seeing right now, but we think it will continue to be strong for the foreseeable future. The other thing that Charlie.
We're really encouraged by as we've been saying for for a bit of time, but we are we're looking to expand outside of our core <unk> market vertical and you know in Q2, we launched in regulated utilities.
This period, you heard us launch into additional markets uneven.
We're in a tough market right now with a life insurance carrier. So we are expanding rapidly past are.
Store core FIA business, which is still.
The heart and soul of the business, but we're opening new doors for future growth that gives us.
And a lot of confidence about the future.
That's helpful. Thank you very much just one last question on the <unk>.
Syed.
Looking at it on a kind of a same store basis.
Check volumes look like.
Historically been down kind of mid to high single digits is that still the case.
So Charlie Charlie the right way to think about it as we think about total volume.
And total volume.
Excluding our wins the trajectory looks fairly similar and the rebound after co burden.
Has.
Has been solid and if you look at the trend over a multiyear horizon the trend there really isn't any different.
The code would drop.
We normalize that over two year period of time on the trajectory in the marketplace overall really isn't any different we're able to mitigate that because of our wins.
Anna.
Particularly stronger part of that business of course.
Thank you very much Gary.
Your final question comes from the line of Chris Mcginnis with Sidoti <unk> Company. Your line is open.
Yeah. Good morning, Thanks for taking my questions and nice quarter.
I was wondering if there could you just just with <unk> can you just talk about what you were selling to them before the expansion of this relationship and you can you just share how that expansion formed and took place. Thanks.
Sure. So this is a great example, its another example in Australia are examples Chris where we take long standing customer relationships, where we have one or two products and we go in and approach them in a very different way instead of trying to sell them one product at a time instead, we try to understand.
Their problems are what their challenges are and then bring together the portfolio of solutions that we have to help the customer succeed so you've heard us talk about that last period with.
P&C, you've heard him talk about it with some or all of it.
We talk about at this time and when the volumes and we had a couple of products with them.
And what we followed the same model, which was understanding what their problems and there are challenges were and we simply solved.
<unk> for them.
That may be is most created really in creating a solution that they're reselling to their customers help their customers <unk> leveraging the assets that we have inside of our customer assessment to help the bank build under product for themselves. So we're really proud of that because I think it shows.
The power of the <unk> model not go into a customer and try to sell a product one at a time fell into the customer understanding what they are probably one of the challenges are and what they're trying to do in the marketplace to grow and then helping them build a solution to solve that problem.
And that has accelerated throughout our business, we have customers that are customer than the last two days.
And one part of our business trying to develop.
Customer grim than new product customer and delivering delivered our customer program product development.
And it works.
It just works.
Great.
Just a quick question on <unk>.
First American what's the growth rate prior to you acquiring the asset in the low single digits. If I remember right can you just confirm that.
Thanks.
So that gives us you know.
<unk> strong healthy business, we acquired but its historical run rates over and that many year horizon was in the low single digit rate you are correct.
They will help accelerate that.
But what were the performance of that team and posted today, which we think is pretty outstanding.
He is well in excess even they are improving trajectory.
I'm very proud of them for that we think.
Halo and part of that but also so is excellent execution by that team who is.
Doing a great job.
Okay that's perfect.
Can you just talk about the health of small business that youre seeing.
How reliant are you on that now as you've kind of expanded right.
The offerings.
And relationships, especially on the financial side.
So start with Chris our business, primarily in increasingly is on a business to business to small business safer.
So are many of our products are sold through financial institutions, who sell them arms with their consumers and small businesses and so we do have significant exposure to small business.
We are our primary customers are those reselling those solution.
Businesses and then we are able to continue to expand our relationships.
In many cases, where those.
Houston partners are selling more of our products and services to be heard and talked about it and HR payroll and other places as well and so we do have we do have we do have a meaningful part of our business and our small business.
But that our customer acquisition program, primarily sell through our partners to get to them, where we are not spending heavily massive marketing dollars to try to acquire a small business customers directly for example, you'd never see a deluxe and on television or the <unk>.
<unk> trying to get you to come to our website.
Tremendously inefficient and not our model.
Okay. Okay.
And just in checks.
Just to kind of a follow up I think off of <unk> question.
The frequency you've talked about that a number of times through the pandemic.
The frequency level pre pandemic or are we still trailing that a little bit just kind of given variants and different things like that.
And honestly I think it's a bit early to tell.
We the reorder cycle, we have plenty of reorders that would indicate that the cycle has not particularly changed but given the weakness in Q2 for the whole economy. This is kind of hard to say exactly what that looks like on a run rate.
We're pleased to see continuing reordering and pleased in particular to see new small business. Those that started during the pandemic in the middle of last year are already into the reorders by cloud.
Overall.
We think that's encouraging overall great.
Great and then one just one last question just on the guidance.
Reiterating that this morning.
<unk> assumes a bigger step up in the margin profile can you just talk about the change from Q3 to Q4, especially given the environment of the inflationary pressures supply chain disruptions what drives that improvement. Thanks.
Look we think about this business as being.
The guys, who do another 20% to 21% EBITDA business. If you look over the course of the last five or six quarters I think we'd be essentially Q3, 2020, which is a real outlier as we pulled back and we had some COVID-19 related costs temporary COVID-19 related cost savings initiatives, we pretty consistently been in that range, we do expect to get back to that level in Q4.
Similarly, as I referenced before because inflation was pressure to the tune of 100 basis points and so we think we will have mitigates for that in place to really help us.
Help us get back to that kind of low 20% EBITDA target as we think about the balance of the year, we issued revenue guidance of 10% to 12% on a revenue basis, we do think it will be through the <unk>.
Towards the high end of that range and an adjusted EBITDA basis, we think we'll be into the low end of the 20% to 21% range. So we still feel like we can.
Meaningful improvement on a sequential basis as we mitigate some of the pressures that we saw in Q1.
And so confident in this important milestone that we obtained last quarter of having legacy deluxe sales driven positive organic growth.
And we expect to see that and we saw that again in Q3, we expect to see it again in Q4.
Great.
Thanks for taking my questions congrats on the quarter and good luck in Q4.
Yes.
I will now turn the call back over to Tom Amato for closing remarks.
Thanks, Dan and before we conclude I'd like to mention the following conferences that management will be participating in.
The City Fintech Conference on November 18, with Stephens Annual Investor Conference on November 29, the Wells Fargo fifth annual TMT Summit on December <unk>.
Needham 24th annual growth conference on January 2022, and the Sidoti Winter small cap conference on January 20th.
Thank you again for joining US today, please stay healthy and safe and we look forward to speaking with you in February and we share in fourth quarter and full year 2021 results.
Thank you ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect.
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Yeah.
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