Q3 2021 Xperi Holding Corp Earnings Call

Good day, ladies and gentlemen, thank you for standing by welcome to the Experian third quarter fiscal year 2021 earnings conference call. During today's presentation. All parties will be in a listen only mode. Following the presentation. The call will be opened for questions to ask a question press star one on your telephone keypad at any.

I would now like to turn the call over to Geri Weinfeld, Vice President of Investor Relations for Experian Geri. Please go ahead.

Good afternoon, everyone. Thanks for joining us as we report our third quarter of fiscal year 2021 financial results with me on the call today are Jon Kirchner, CEO and Robert Andersen CFO also on the call is near arm Lee President of IP licensing will be avail available along with John and Robert to answer.

Austin during the Q&A portion of the call.

Before we begin I would like to provide two reminders first today's discussion contains forward looking statements that are predictions projections or other statements about future events, which are based on management's current expectations and beliefs, and therefore subject to risks uncertainties and changes in circumstances. Please.

Please refer to the risk factors section in our SEC filings, including our annual report on Form 10-K for more information on the risks and uncertainties that could cause our actual results to differ materially from what we discussed today. Please note that the company does not intend to update or alter these forward looking statements to reflect events or circumstances arising after.

Carl checking.

Second we refer to certain non-GAAP financial measures, which exclude one time are ongoing noncash acquired intangible amortization charges costs related to actual our planned business compensate combinations, including transaction fees integration call Safran.

The closures and retention bonuses separation costs stock based compensation loss on debt extinguishment expense debt refinancing costs and related tax effects.

Provided reconciliations of these non-GAAP measures to the most directly comparable GAAP measures in the earnings release and on the Investor Relations section of our website.

According of this comparable conference call will be available on our Investor Relations website at Www Dot expiry Dot Com I'll now turn the call over to Jon Kirchner.

Thanks, Jerry and thanks, everyone for joining us.

We had a strong quarter with better than expected revenue cash flow and earnings revenue was $219 $4 million up eight 2% year over year, mainly due to increases in IP, partially offset by declines in the product business due to supply chain constraints.

Non-GAAP earnings per share was 53 cents up 179% year over year.

We generated $82 $9 million in operating cash flow, an increase of 33% year over year and repurchased approximately $25 million of stock.

Although we saw an increased impact on the product business from chip in general supply chain constraints, we remain on track to deliver strong financial results for the year.

At a high level, we made solid progress on the following growth drivers during the quarter.

Dts auto sense launched on the BMW I X series in Europe with more models to come in 'twenty two.

Dts auto stage delivered in new models. In addition to the S class Mercedes has now implemented Dts auto stage and its C class vehicles.

Disney plus launched as a streaming partner in our IMAX enhanced ecosystem.

We accelerated adoption of our IP television solutions and integrated Mobi T V to provide a managed service offering.

We increased the footprint and available content for the Tivo stream and advanced discussions toward delivering stream OS on connected Tvs and.

We made progress towards reestablishing, our semi IP business with the addition of Y M. T C. As a new licensee for our hybrid bonding portfolio.

Let me now begin with a discussion of our IP licensing business.

Revenue in Q3 was $101 $6 billion up 27% year over year.

This increase was primarily driven by the success, we've had with renewals and expanded licenses over the past year as well as some new IP agreements signed during Q3.

As typical with IP businesses. These results reflect some agreements that include ketchup or upfront license fees.

We continue to make progress on certain key drove growth drivers in the quarter and OTT, which represents our largest growth driver. We continue to engage with a strong pipeline of streaming services around expanded renewals and new license agreements.

In Canada, we are awaiting a decision in the initial round of litigation.

We remain very confident in the relevance of our IP portfolio and in our ability to ultimately achieve a market based resolution, although predicting timing is always difficult.

As a reminder, we filed a second rounds of litigation against Videotron and Bell, Canada earlier this year.

And semi IP, we announced a new license with Y M. T C. A semiconductor memory manufacturer based in China.

But we're still in the early stages of reestablishing our semiconductor IP business. This license is another data point underscoring the relevance of our IP and hybrid bonding.

Why Mtc is the first company shipping commercial three D NAND products that incorporate hybrid bonding.

This agreement recognizes the broad fundamental nature of our bonding IP portfolio and our leader leadership position in that market.

It is also a proof point in the continued proliferation of hybrid bonding.

Into an expanding range of semiconductor applications, including sensors memory and logic.

Our execution year to date for the IP business as a whole puts us on track to exceed our $350 million average annual baseline by roughly 10% this year.

Confident that our IP licensing business is better positioned than ever.

Supported by long term agreements that generate significant recurring and very profitable cash flows well into the future.

Moving to our product business total product revenue was $117 $7 million down 4% year over year, while we saw growth in monetization and IP television. This was offset by declines in connected car mobile devices game consoles and consumer hardware from supply chain constraints that <unk>.

<unk>, our customer shipment volumes.

First.

A comment on the supply chain.

Although the year started off strong beginning in late September we started to see signs that the impact of supply chain constraints on our product business was greater than in prior quarters.

This disruption we are seeing some year over year declines in customer volumes impacting our per unit royalties imports.

Importantly, we've made significant progress on our key initiatives and as we look ahead, we strongly believe that our product business is solidly positioned for growth.

And the consumer experience category revenue was $46 $1 million down 6% year over year as I mentioned the decrease in Q3 was mainly driven by unit declines in mobile game consoles and consumer hardware.

We had another solid quarter for unit sales of the Tivo stream <unk> and continue to make progress on building out the Tivo stream platform on.

On the content front, we continue to expand our AD supported tivo, plus offering with new content partners, including QVC Hallmark movies, and more Magnolia pictures and Kevin Hart's laugh out loud.

We also expanded our relationship with Pluto TV to integrate 33, new channels, including Showtime selects Pluto TV double O seven the Paramount movie channel and more.

Lastly, we added Acorn TV TV to our asphalt lineup.

We also songs saw strong growth in connected TV monetization during the quarter.

As we successfully launched a new connected television advertising product with unique audience targeting based on Tivo as viewership data.

Importantly on the IMAX enhanced front today, we jointly announced a new partnership with the Walt Disney Company and IMAX beginning November 12 for the first time ever.

<unk> fans will be able to enjoy their favorite titles at home with IMAX enhanced on Disney plus this is a significant step in expanding the content available in the IMAX enhanced ecosystem.

Moving to our pay TV business.

Revenue was $54 $2 million down 2% year over year. We are very pleased with the success. We are seeing as more customers begin to adopt our IP television solutions.

Additionally, with the smaller than expected year over year decline in revenue our strategy is being proven out as our higher value IP television solutions are mostly offsetting declines in our traditional interactive program guides.

Q3 was our first full quarter with Mobi television following the completion of the acquisition in Q2.

The mobi TV integration is progressing well and we're on track to complete integration during the fourth quarter.

With the Mobi TV integration completed we'll be able to further scale, our overall IP television offerings and accelerate subscriber growth.

During the quarter, we help customers excuse me, we help customers, including cable one service electric cable vision Blue Ridge, and Armstrong launch and begin scaling their IP TV offerings.

For all we continued to see another quarter of strong subscriber growth for IP TV services.

Moving to the connected car category revenue was $17 $4 million down 6% year over year as production reports received after the end of the quarter clearly indicate an increased impact from the chip supply constraints on our HD radio business.

Despite the supply chain issues during the quarter 24, new models launched with HD radio technology in the U S and Mexico.

He also launched HD radio and two new categories trucks with Daimler in motorcycles with BMW.

Additionally, we have been approved for ISO 9001 certification for HD radio.

This is a critical milestone in meeting global auto industry quality standards to ensure our position in the market.

Dts auto stage continue to rollout and Mercedes models, the new C class launch with our technology.

In Europe with cars, arriving in the U S at the beginning of 2022.

We continue to work an active pipeline and are participating in RF queues with car companies across Europe, Japan, and North America for programs launching between 2022 and 2025.

For Dts auto sense, BMW launch vehicles with our occupancy monitoring system technology in Europe on the BMW I ask these.

These models will arrive in the U S. At the beginning of 2022, we are proud to be part of the first LMS solution brought to market.

Further truck lines in Japan continue to launch with a driver monitoring system technology, and we are pleased to see our production Dms solution expanding in Asia with the recent shipment of trucks with our technology in Singapore.

Additionally, experienced proud to have been recognized by Frost and Sullivan as company of the year for connected car media industry Best practices. We believe this third party validation of our products and team highlights our innovation efforts and enhances our market position in the connected car category.

And our perceived business, we continue to engage with customers across multiple markets and supported their development efforts with a year ago platform.

As we mentioned last quarter, we provided our machine learning tools to select customers and this quarter, we followed up with additional software chips and boards to support customer development efforts, we continue to see significant demand for power efficient high performance AI capabilities for next generation products.

Unfortunately, one of our customers canceled or product originally slated for 2020 to.

That decision is unrelated to the performance and capabilities of our platform.

We continue to work with a range of other partners on the development of innovative products utilizing ergo.

However, given the current supply chain environment and its potential impact on our long gating production schedules. The exact timing of when the first perceive enabled product will come to market is uncertain, but likely within the next 12 to 18 months.

Lastly, I want to touch on the significant attention and focus being placed on the meta versus.

The move toward greater acceleration of investment development and adoption of advanced AR VR technologies and the creation of an omnipresent digital presence is a big positive from our point of view.

Experienced develop deep IP expertise.

Products and solutions and the spatial audio imaging personalization discovery AI presence and awareness areas. Many.

Many of these enabling technologies are already in the market and we've been working on others with partners in this space over the past few years.

In the end, enabling technologies like these will be essential and fundamental.

Spirit has always been focused on bringing extraordinary experiences into our lives in the meta versus emerging as the next frontier.

Exciting times ahead, as we participate in this market and create new opportunities for growth.

With that I'll turn the call over to Robert to discuss our financials Robert.

Thanks, John.

Let me begin with financial results for the third quarter.

First third quarter revenue was $219 $4 million.

Which was ahead of our expectations for the quarter, primarily from certain deals in our IP licensing business closing earlier than anticipated.

Offset by the supply chain constraints.

Noted by John that impacted our product business.

On a non-GAAP basis, our operating expense, excluding Cogs was $114 million down $5 3 million or four 4% year over year.

Mostly due to lower litigation expense and synergy savings.

The offset by expenses from the acquisition of Mobi TV last quarter.

Non-GAAP cost of goods sold of 31 $9 million. It was $1 9 million lower than in the third quarter of 2020.

Cash taxes paid in the quarter were $7 $2 million.

And the $7 2 million cash tax number the non-GAAP earnings per share for the third quarter was 53 cents.

We ended the quarter with $104 eight.

8 million basic shares outstanding and $113 1 million.

Non-GAAP fully diluted shares outstanding.

Moving to the balance sheet, we finished the quarter with $237 $3 million in cash and investments.

Also paid down $10 $2 million of debt during the quarter, bringing the outstanding balance down to just under $800 million.

Operating cash flow for the quarter was $82 $9 million up 16 from $62 6 million a year ago.

Primarily due to changes in working capital lower cash taxes and reduced spending.

Our adjusted free cash flow for the quarter was $87 $7 million.

Adjusted free cash flow reflects operating cash flow adjusted for $3 $4 million of property plant and equipment spend.

And $8 2 million of merger and separation related costs.

During the quarter experience paid a quarterly cash dividend of <unk> <unk> per share of common stock.

We also repurchased one 2 million shares of common stock for a total of $24 $8 million.

Let me lastly comment on our outlook for the year.

We are narrowing the year's revenue ne range to $870 million to $890 million.

The lower end of the range reflects continued impact from supply chain constraints on our product business.

While the higher end reflects improvement in per unit product shipments and positive outcomes on deal closures for the business as a whole.

For expenses.

We are lowering the gears non-GAAP operating expense range to $455 million to $465 million.

Which reflects reduced spending for the full year, primarily on litigation personnel and outside services and marketing.

Guidance for Cogs interest expense and other income remain unchanged.

Cash taxes, now estimated to be approximately $36 million.

We are raising the range for this year's operating cash flow to $205 million to $225 million, which incorporates the impact of reduced spending as a result, our adjusted free cash flow range also increases to 210.

To $230 million.

That concludes our prepared remarks, let us now open the call to your questions.

Thank you if you would like to ask a question. Please signal by pressing star one on your telephone keypad, if you're using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment again that is star. One if you would like to ask a question, we'll pause for just a moment to allow everyone.

An opportunity to signal for questions.

And once again that is star one if you would like to ask a question.

And well take our first question from Hamid <unk> with BWXT financial.

Wanted to start off by talking about the Opex guidance declining these cost savings that you're talking about.

Is there any possibility some of them ratchet up next year or are these permanent cost savings.

I think this is Robert Theres a bit of though we have some savings we've experienced this year four.

Personnel expense or outside spending.

And.

Some of that won't recur, but I think on the other side, we have had lower litigation expense this year at least compared to our historical past.

So we would expect that at least from a run rate basis to probably increase depending on where we are with some of the cases.

Also.

We will continue to make investments in growth in the business. So I think if we were looking at a year over year expense number to give them a pretty early.

In terms of.

Looking at 'twenty, two we're still going through that planning exercise.

I would expect that spending in general would increase.

Okay, and then on the IP TV side that you've been seeing.

Positive activity is that because the mobi T V.

In the business or is that.

Experience own IP TV product that was winning the business.

It's both.

Coming into about a year ago had booked.

Quite a bit of business that due to COVID-19.

Various operators chose not to deploy because there were challenges in getting truck rolls into houses et cetera, et cetera and.

And so we've been working with our partner customers too.

To help them develop ways, including self install options that.

Are helping operators.

Cost effectively get IP TV into various households, so.

I think as we in particular look ahead, we're going to see more acceleration on both counts both in the managed service offering which we feel great about.

With the acquisition of movie television and how that can address an important part of the marketplace, but also within the typical legacy traditional.

IP TV business.

We've had for some time.

Okay, and then lastly on the perceive the order cancellation or the partnership cancellation, not really you want to refer to it.

Was this because of the.

Potential customer redesigning and using something else and going away or was this purely because of what's going on in the supply chain upfront.

Neither actually it had to do with their view of where they thought they wanted to be positioned in the marketplace and the respective.

Price point features et cetera that they thought would advance their business interests. So we don't typically.

Because we are an ingredient supplier, we don't typically talk about in customers' products, but.

Given that we had originally expected something to occur.

Let's call it in the earlier part of 'twenty, two and that that has changed we have a number of other irons in the fire and working with a number of potential partners and I think the bigger question. Now is just how does that play out over time, given what we're seeing in the broader kind of dynamic environment and what's the exact timing, but we feel very.

Very very good about.

I think the uniqueness of the platform and where are we.

We believe we can take it over time.

It's a huge.

<unk> for us.

Great. Thank you.

And our next question comes from Sam Peterman with Craig Hallum Capital Group.

Hi, guys. Thanks for taking my question I wanted to ask on connected car and that was down quarter over quarter and it seems like.

You lost on the same number of programs and kind of what was anticipated and it seems like most of that is just from kind of lower OEM production volumes.

Is that the right read and then.

Could you just talk about the outlook for 2022.

In that segment given the constraints in the industry.

So.

For Q3, it was definitely lower unit volumes and that's what we saw.

It's not due to any particular design losses, I think as we look out into 'twenty two.

Overall volumes are currently forecast.

It will be down year over the year, although we do expect some relief from the supply chain issues as we move into 'twenty two.

So it's really going to depend on both the product mix and brand mix.

Brand market share and we will know a lot more when we get through February.

Now we have a lot of new technologies are being able to penetrate the automotive market.

We also expect will further impact 'twenty two.

Okay. That's helpful. Thanks.

No I wanted to ask on hybrid bonding.

You had the announcement with Y M T C and I guess I'm curious just kind of at a high level, who else do you guys see as likely early movers in the technology.

Any any thoughts you could offer on when you guys could start to see revenue impact from hybrid bonding licensing whether that's from a y mtc.

Somewhere else.

Hi. This is severe so we certainly are seeing an increase in the industry discussions around hybrid bonding.

It started first in image sensors, it's moved into memory, including some of the NAND discussions, we just talked about with why Mtc and we certainly see opportunities in other segments like logic. So it still is taking some time for that to penetrate some of those markets.

<unk> for example, we probably would be seen in the 'twenty three 'twenty four time frame.

But we're pleased both the deals we've done to date with the likes of Samsung and SK Hynix and the more recent deal with why Mtc really highlight the strength of the company's portfolio and expertise in hybrid bonding and as that market opportunity continues to develop we are excited about the opportunity it brings for us.

Okay. Thanks for that I think just one more quick for me on Mobi TV. It sounds like integration is almost complete and that's going well I was curious if you could give any color on.

What kind of revenues you think you could see.

<unk> TV next year and kind of qualitatively how.

Negotiations with customers.

Are going.

What those new assets.

Maybe let me take the second question.

And I'll, let Robert address the first.

I would say discussions with the customer base are going very well.

<unk>.

Within 30, or 45 days, even after acquiring the assets we had successfully.

We signed in the neighborhood of 100, 100 customers and I think people are seeing our commitment to both investing and innovating around the platform as well as being.

Our long term partner in this space that this is.

Hawaii.

Strong platform to be associated with and I think that's going to help us scale at pretty meaningfully and so.

This is very much a game of scale and I think.

We will be looking to to see that scale meaningfully change in 'twenty two.

Curt do you want it.

Another question.

Sure just in terms of the numbers, we're expecting this year for the really from the time, we've acquired mobi TV sort of mid single digit revenue.

Low teens on expenses and then we expect that to scale as John was describing.

And turn a profit and the good thing about that.

Mobi Treaty structure is that it is scalable so as it scales. The costs are somewhat fixed and we can continue to get additional profits on that business.

But once we get on the call in February.

February we will provide.

You know a broader macro view of where we're at.

Can go.

Its avi we expected obviously to grow meaningfully.

Between current.

Between the current run rate level anymore.

Okay. That's really helpful. I think that's all for me thanks, guys.

And once again to ask a question that is star one we'll take our next question from Matthew <unk> with Maxim Group.

Hey, good afternoon, Thanks for taking my question.

Maybe firstly on the.

On the Disney win at IMAX and had could you just talk about maybe frame the magnitude of what a sort of significant streaming.

When the U S does for the.

For that piece of the business.

And kind of does that encourage follow on adoption in the U S market.

Yes, I mean this is about long term ecosystem building in our cases, we talk about ecosystems.

You need.

More relevant content and you need then more devices in the marketplace and they kind of feed on each other so that you can deliver the highest quality quality experience to the largest group possible providing advantages to both the content distributors as well as in consumers and so.

This is.

Obviously.

Very important from our perspective and that you've got a.

A fantastic major service like Disney plus.

Coming online and we think it will over time not only.

Encourage others to join from a content perspective.

But it will we think there'll be a natural impact on.

Kind of hardware impact, which again in turn which will make this more attractive for other people to participate.

And so.

I think it will take it will take a bit for for this to play out but overall.

This is a this is a partnership we have worked on for some time and we've got very good relationships. There and we think it's fantastic that Marvel fans will be able to really enjoy.

The highest possible form of content delivery in their own homes with with IMAX enhanced.

Got it thanks.

And then maybe another follow up on perceive.

On the question you answered before.

Is there.

To the extent you could say their perception that you know.

The less consumer.

Impetus for.

Edge computing and device that can do inference at the edge.

And that there isn't an incremental value there or is there any other kind of takeaway.

We can hear queen from from that dynamic.

No.

I don't think.

Our experience with this.

In this case as being representative of let's call it a broader trend of consumer.

Lack of interest in.

Hedged based computing I think.

We just happened to be at the front end.

Some meaningful innovation in the marketplace and I think.

Until it is both the platform is both easy.

To implement.

And people begin to discover a whole range of possibilities that in many cases, we're never previously possible coupled with benefits like privacy. They can only occur at the edge.

I think as that story plays out.

Thank you we'll see.

Demand.

In exploration in and around what can be done at the edge growing very meaningfully I mean, I think if you think about it just in simple terms why wouldn't you want to be able to have kind of data center class compute power.

Meaning processing performance.

At the at the cost of of little to no.

Electrical power when you think about that from a product design perspective, and you have to manage things like heat dissipation.

Can impact form factor it can impact obviously battery life performance and it can impact privacy. I mean this is this is the beginning of something much much much bigger the challenge is simply and we've been working aggressively on this as we've openly discussed.

Which is getting our platform tools and a place where it's easy for third parties to be able to take the technology and implemented particularly in a dynamic marketplace where the.

Things are changing and are so dynamic people or not necessarily.

Looking to do things that are that are hard and difficult and so it's incumbent upon us for for us to build that those tools out and we feel very good that that process is progressing pretty much consistent with our expectations over the last 12 months and we look ahead.

Think there's some really exciting engagement.

Thank you and then maybe one last one.

From B.

Hugh.

<unk> completed a notch I take HD radio.

Models, you mentioned the ISO 9001.

Certification can you speak to just.

I guess ex the supply chain.

Frustration you know what.

What more is there to do an HD radio.

In the market and how far can you push that solution.

Well I think there is.

No doubt incremental market share to be gained if we can continue to lower the cost of the hardware and the implementation I think over the years, we have done that with different partners and I think we continue to work on that.

Because naturally if it's if.

If it's less costly to implement from a hardware perspective potentially expands the range of models.

More easily make that decision.

Secondly, you've got various <unk>.

Standards.

Activities that are going on as people explore how to best utilize the spectrum.

And the HD radio system to deal with things like emergency alerts.

And other safety related applications that are very much on the minds of government and government regulators and I think as that plays out that May also influence. If you will the ultimate degree of penetration, but I think mean Meanwhile.

We need to continue to just work to ensure the technology is available on the platforms that our customers are using look to proactively drive down cost and continue to build out the broadcast footprint.

Helping both the broadcasters and the automakers understand the benefits that HD radio can provide in a number of areas and if we do that we think will continue to see that incrementally grow.

Great. Thank you.

And our next question comes from Michael Cohen.

With MDC financial research.

Yes, Thank you John for taking the call and congratulations on the quarter.

I was wondering regarding the IP licensing business is that something that you guys are still contemplating spinning out or is that off the table.

No we have.

Openly discussed separating the.

The product and IP businesses.

We are.

Have been to our we have been targeting.

By the Middle of next year I think we in the past we've talked about some of the conditions that are important.

To be able to to affect that separation and they involve everything from making sure the backend of the business and the systems and infrastructure is such that we are ready to go which is something we are very very focused on doing.

And continue to advance month after month.

Another issue that is critical to this is just getting clarity.

About the.

The growth prospects for the product business and we've been working hard to position the business.

In a way that we think can cannot only be very successful on a standalone basis, but one that will help investors understand in a more pure play way the opportunities and benefits that.

Come with the product business as well as the IP business, which were equally building for long term strategic stand alone.

You know kind of value.

And so and in the third key element is just what what are the market dynamics at the as you approach separation and I think.

As we handicapped when this might occur.

Last last year.

Thank.

Just to be things that are creating challenges and changes, but it's something we're still very much working forward.

<unk>.

<unk>.

As we get into February we'll have a better view on how we think 'twenty two plays out and the exact timing of what we're thinking about there but.

Strategically we think it makes a lot of sense.

For a number of reasons, including eliminating some dis synergy, but the key is is that in order to create value for shareholders in a transaction like that which is our objective and our really our only objective.

You need to ensure that both businesses are firing on all cylinders in a way that you can affect it and make it a win win outcome.

Okay, and I have a follow up regarding the Canadian litigation, if you can answer it.

I mentioned that were waiting a decision out of Canada.

I'm wondering if it is going to come as the single decision I think more likely two decisions one would be videotron and one would be B C. D E and tell US is that correct that would be two separate decisions.

That's correct. This is severe so certainly there are two separate.

Proceeding is ongoing in Canada.

<unk> heard before the same judge and so ultimately there'll be distinct decisions, whether they happen at the same time or happen at separate times, it's not something we have certainty on but as we've mentioned in the past we still expect those decisions to happen sometime this year, but we're not waiting for that we've continued to advance our discussions.

In general and in the Canadian market as well as pursued a second round of litigation as you might know Michael with some of the folks there in Canada.

Alright, I'm not as familiar with Canadian courts, do you think that they would hand off the decision you to press release, it or is there a chance that it would likely be first on the docket.

That's how you would become aware of it.

I think we'll we'll be aware of it as the as the judge issues that so I don't think there'll be any any surprises there.

Okay.

Okay. Thank you very much.

And at this time Im showing no questions in queue I would now like to hand, the conference back over to the speakers for any additional or closing remarks.

Thanks, operator, and thanks, everyone for joining us on today's call we delivered another.

Another solid quarter and I'm, particularly pleased with the progress we've made on growth in our IP business auto stage in auto sense deployments IP TV IP T D adoption.

And expanding the Tivo stream platform I want to thank our employees for their dedication and commitment to executing on our strategy and.

I look forward to discussing our progress progress with shareholders over the coming months and look forward specifically to seeing some of you virtually at the Wells Fargo fifth annual TMT summit in early December.

Operator that concludes today's call. Thank you.

This concludes today's call. Thank you for your participation you may now disconnect.

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