Q3 2021 Sonendo Inc Earnings Call
Good afternoon.
Afternoon, and welcome to <unk> third quarter earnings Conference call. At this time, all participants are in a listen only mode. We will be facilitating a question and answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes. Joining me from <unk> are beyond Burger <unk>, President and CEO and Michael Walsh CFO earlier today.
Endo released financial results for the quarter ended September 32021 copy of the press release is available on the company's website before we begin I would like to remind you that management will make statements. During this call that include forward looking statements within the meaning of federal Securities laws, which are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of nitrogen.
Any statements contained in this call that relate to expectations or predictions of future events results or performance are forward looking statements. All forward looking statements, including those relating to our operating trends and future financial performance the impact of COVID-19 on our business expense management expectations for hiring growth in our organization market.
The revenue guidance commercial expansion and product pipeline developments are based upon our current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those implied by these forward looking statements. Accordingly, you should not place undue reliance on these statements for a list and description.
One of the risks and uncertainties associated with our business. Please your first the risk factors section of our public filings with the Securities and Exchange Commission, including the final prospectus filed with the SEC pursuant to rule 424 before on November <unk> 2021 in connection with our initial public offering this conference call contains time.
Sensitive information and is accurate only as of the live broadcast on December nine 2021, and I know disclaims any intention or obligation except as required by law to update or revise any financial projections or forward looking statements, whether because of new information future events or otherwise and with that I would now like to turn the call over to art.
Thanks, Matt Good afternoon, and thank you for joining us before we begin I would like to take a moment to acknowledge that this is our first earnings call. Since we completed our IPO and listed on NYSE in October.
I would like to take this opportunity to say thank you to all those who participated in the offering which raised approximately $84 million in net proceeds and to those who have invested in the company.
I would like to again, thank the entire <unk> team, our board of directors and most of all our patients and the doctors who care for them.
With all of your support we are well positioned to take the next steps toward our mission of improving root canal therapy by enabling better patient outcomes and reducing post op pain.
General based system.
Moving to our quarterly revenue herself.
So then those revenue for the third quarter 2021 was $7 $9 million compared to $6 1 million for the third quarter of 2020 representing growth of 29%.
Growth in the quarter was driven primarily by increased utilization among our current installed base and increased Jonathan console sales.
At September 30th gentle waves ending installed base was approximately 750 units.
Mike will later provide more details on our quarterly financial results and additional details regarding full year 2021 guidance.
Before providing some background on the company I wanted to address two topics that have had the broad scale impact across the medical device industry.
First being COVID-19.
We did not see a meaningful impact on patients delaying or deferring root canal procedures in the quarter.
Based upon our estimates and what we are hearing anecdotally from our endodontist customers patient volumes are trending at or slightly above pre COVID-19 levels.
While our growth was heavily predicated on our ability to penetrate the root canal market and so consoles to new users. The durability of patient volumes. It's dental offices is a positive sign that the end market is strong.
And that there is demand for our technology.
As a reminder, our customers are primarily endodontist, who operate small businesses and higher staff, who work normal business hours.
While dental offices have been busy rescheduling cases.
That may have been delayed due to COVID-19 surges in 2020 in 2021, they are not subject to the same level of clinical fatigue that has plagued the medical industry.
With that said, we will continue to monitor the spread of the omicron variant and any impact it may have on our customers.
Second is the headwind associated with the global supply chain pressures and its impact on medical device companies.
Based on how our supply chain is set up currently the majority of our raw materials and inventory are from domestic suppliers, while we do not expect supply chain issues to have an impact on our ability to meet our revenue appliance, we continue increasing inventory levels for certain components to mitigate any future risk.
Now I would like to provide a brief introduction of every company to those who did not have a chance to hear our story during the IPO Road show.
But then there is a commercial stage medical technology company focused on savings from tooth decay. The most prevalent chronic disease globally. We are initially focused on root canal therapy, or RCT, representing an annual addressable market of approximately $1 9 billion for <unk> in the United States and Canada.
It's an endo developed a gentleman system, an innovative technology platform designed to treat Tuesday, K by cleaning and disinfecting microscopic spaces within teeth.
<unk> is the first and only FDA approved system Farooq Canal therapy that uses a sterilized single use procedure instrument to automate and standardize to cleaning and disinfection of these root canals.
Gel based proprietary mechanism of action, which combines procedure fluid optimization broad spectrum acoustic energy and advanced fluid dynamics, the brides and disinfect deep regions of the complex root canal system, and a less invasive procedure that preserves through structure.
The clinical benefit of the Jamba system, when compared to conventional methods a root canal therapy include improved clinical outcomes, such as superior cleaning that is independent of root canal complexity, and Tuesday anatomy high and rapid rates of healing and minimal to no post operative pain and.
In addition, Joe my system can improve their workflow and economics of dental practices.
<unk> is also the parent company of <unk> software the developer of a widely used and adopted practice management software solution.
<unk> proprietary software is designed to simplify practice workflow, while also offering a built in communication solution with the <unk> system.
I would now like to take a minute to highlight what separates and endo and <unk> system from the rest of the dental industry.
Through years of research and development, we have compiled over 30 peer reviewed journal publications and two prospective multicenter clinical studies that puts Fernando on a different playing field it.
At a high level. The generally procedure has been clinically proven to provide strong clinical outcomes superior cleaning and the less invasive procedure and enhance procedural efficiency.
We have developed a solution that addresses a key limitation of conventional root canal therapy, which just has the extensive use of instrument the files. These.
These methods remove access a tooth material, which can lead to cracking and factors over time.
Consequently, conventional root canal procedures have a failure rate in the range of 15% to 32%.
Furthermore, at 30% to 70% of patients report post op pain.
By comparison, the Jamba system enables superior cleaning and disinfection with a 97% success rate with minimal to no post op pain.
As a result of this we see from our survey data that the vast majority of patients upon learning about <unk> would rather be treated using jello live than conventional root canal therapy.
As such we believe there is significant opportunity to leverage these dynamics to further support our commercial effort.
As we talk more over the upcoming quarters, we will share further details on specific programs and initiatives designed to support our commercial expansion.
In addition to providing superior clinical outcomes <unk> is designed to improve workflow efficiency.
Given the lack of standardized protocols for conventional root canal treatments and the fact that tooth anatomy is extremely complex roughly half of all conventional procedures require multiple visits.
Aside from the patients having to make and second appointment multi.
Multi visit cases make it difficult for dentists to run an efficient and profitable practice.
From a workflow perspective, Jamba is automation and standardized protocols result in faster procedure times and increase the number of single visit procedures.
Doctor smoothed from conventional methods to the Jamba procedure, we've seen single visit cases increase from 57% to 90%.
The key takeaway here is that the generally procedure can enable doctors to save time.
Lot of them to treat more patients and increased practice revenue.
In addition, conventional methods RCT utilize techniques and devices that create aerosols during the procedure, which is to become an important issue for clinicians and patients during the COVID-19 pandemic to the heightened sensitivity to the concerns associated with cross contamination via aerosol.
Rest of gel may procedure has virtually no aerosol emissions something that we have seen be important for both doctors and patients.
Transitioning to product development.
With more than 700000, gentlemen, root canal procedures to date, we have learned a lot and have taken these learnings and incorporated them into our next generation clean flow proceed in restaurants.
As a company our goal is to not only provide superior clinical outcomes and positive patient experience, but to drive increased efficiencies at the practice level with the launch of clean flow, we haven't improved agility of procedure by removing certain steps with the practitioner not only needing to open and prepared to choose to allow the procedure estimate it to be.
Put in place.
It is also important to point out that the clean so procedure instrument will work off the existing consoles. So there is no need for existing customers to buy a new machine.
This will allow us to start shipping clean flow procedure instruments to our existing customers.
Another reason why we're so excited about clean flow that we've been working on enabling better contribution margins for our consumables.
Given the simplicity of clean flow compared to the previous generation procedure instrument, there are fewer components, which lower material costs and allows for easier Assembly, which we believe will drive increased efficiencies at higher volumes.
While we're already approved to sell clean flow procedure instruments in the United States and Canada. We are currently selling these procedure instruments in small quantities in a more controlled market release.
This will allow us to ensure that we understand how doctors utilize the procedure instrument in their practice to support a broader market release.
Early feedback from key customers has been positive and we expect the product to be fully commercialized and available to all customers over the course of 2022.
Turning to our commercial strategy.
In the United States, and Canada, there are approximately $17 million root canal procedures performed annually, representing a market opportunity of approximately $1 9 billion.
The Jamba system product offering consist of a gentleman console is single use procedure instruments and accessories and an annual service contract. We believe our razor razorblade business model with capital equipment and recurring consumables enables an efficient commercial model.
Our initial commercial strategy is focused on targeting the specialists in rutile therapy call ended office.
Our estimates there are roughly 5000 endodontist in the United States and Canada to perform approximately $4 million root canal procedures annually, roughly 25% of all procedures.
Given this extremely concentrated customer base, our commercial approach has been to bring together a team consisting of capital sales reps dysfunction is to drive new business.
Through market penetration of <unk> system.
Similar reps, who act as practice consultants and our focus on educating and training doctors to ensure successful onboarding and to drive increased utilization within the practice.
Following the IPO we.
We are in the process of expanding our commercial organization to accelerate growth.
As of December 1st we have expanded our team of capital sales reps to 23 up from 16 as of June 30th.
We articulated during the road show and in our Securities filings. Our plan was to bifurcate our sales force to include consumable reps.
Happy to report as of today.
Today, we've hired 17 consumable reps, who will be an integral part of our growth and execution as we enter 2023.
In summary, we have a revolutionary technology backed by compelling clinical data and Kols support fall.
Following the IPO, our focus is to invest and expand our commercial infrastructure to penetrate and adopt this channel to make djellaba over the standard of care for root Canal therapy.
Additionally, we will continue to prioritize cross margin expansion and clinical practice efficiency with the launch of clean flow in 2022.
With that I will turn the call over to Michael What's some lenders Chief Financial Officer, Mike.
Thanks, Dan.
And then the total revenue for the third quarter of 2021 was $7 9 million compared to $6 1 million for the third quarter of 2020, an increase of 29%.
Growth in the quarter was driven primarily by increased utilization among our current installed base and increased general eight console sales.
In the third quarter generally console revenue was $1 8 million compared to $1 $2 million in the third quarter 2020, representing an increase of 44%.
We were pleased with the growth we realized in the quarter and continued to see a positive response to the value proposition and benefits are generally enabling continued adoption of this technology.
Turning to procedure instruments Ti revenue was $3 7 million.
Third to $2 $8 million in the third quarter of 2020, an increase of 30%.
Ti revenue growth was driven primarily by increased monthly utilization measured by procedure instrument sold per account and increased install base as compared to the third quarter of 2020 as John mentioned previously despite the increase in Delta Varian infections, we did not see a meaningful impact on patients delaying the defined root canal procedures in the quarter.
While monthly utilization was down sequentially compared to the second quarter of 2021. It is important to point out that the third quarter is typically a seasonally slower quarter and therefore in line with our expectations.
Total software revenue for the third quarter was $1 7 million compared to $1 $5 million in the third quarter of 2020, an increase of 17%. The increase was primarily driven by recurring revenue.
Option days of our <unk> software compared to the prior period.
Gross margin for the third quarter of 2021 was 26% compared to 19, 6% in the third quarter of 2020 the.
The increase in gross margin was driven primarily by reduction in inventory charges related to excess inventory versus the third quarter of 2020 and improved overhead absorption in 2021.
Total operating expenses in the third quarter of 2021 were $13 1 million.
Compared to $10 $8 million in the same period of the prior year.
The increase was driven by increased sales team hiring and other general and administrative costs, primarily legal and accounting.
This was slightly offset by lower research and development costs.
The increase is also reflected the fact that reduced our commercial footprint over the earlier periods of 2020 in response to the pandemic until 2021 spend profile reflects a return to pre COVID-19 commercial head count and associated spending.
Loss from operations was $11 $1 million in the third quarter of 2021 compared to $9 5 million in the prior period.
Net loss was $12 7 million for the third quarter of 2021 compared to $10 $6 million in the third quarter of 2020.
Our cash and cash equivalents as of September 32021, with $13 7 million long term borrowings totaled $39.
Approximately $84 million of net proceeds from our IPO, which closed on November 2nd. We believe this funding will provide the liquidity and capital resources needed to support and grow our current business.
Moving to our financial guidance.
We expect to end full year 2021 with revenues in the range of 32 to $32 5 million.
Since the majority of our customers are small business owners. The fourth quarter is typically our strongest quarter as a large number of dentists linked to purchase capital equipment to maximize calendar year tax benefits. Additionally by year end 2021, we expect our commercial team to consist of approximately 24 sales reps and 17 consumable sales reps with schuh.
Put us and favorable position execute our long term strategic plan as we enter 2022.
At this point I'd like to open up the call for questions.
Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad. If for any reason you would like to remove that question. Please press star followed by team again to ask a question Press Star one as a reminder, if you are using a speaker phone. Please remember to pick up your handset.
We're asking your question, we will pause briefly ask questions are registered.
The first question is from the line of.
Of Matthew O'brien with Piper Sandler Your line is open.
Good afternoon. Thanks, so much for taking the questions.
Beyond just for starters you were addressing.
Delta I am curious about what youre seeing here in Q4 as far as Delta goes all Micron and then what's kind of implied in that guidance for Q4 in terms of utilization capital placements in the seasonality you typically see in the business.
Yep.
Hey, Matt Thanks for the question so Mike.
There are a lot of other companies, obviously, we're monitoring COVID-19 very very closely.
One of the unique features that we have a cement though is that we can monitor utilization live across our installed base and that's obviously something that we pay close attention to since the start of Covid.
And what are you seeing in general is that after August 2020.
We've seen that utilization substantially back to pre COVID-19 levels.
And as we've been.
Obviously, we've been monitoring to see if theres been any effect of the Delta variant.
And we cannot really discern any impact to the delta variance in our utilization numbers.
And that's we're also looking now obviously recently and obviously studying the effective omicron again, we cannot see any discernible impact for omicron.
On utilization, but obviously, that's something that we're going to continue to monitor.
As we go forward.
Now with respect to the guidance.
We're obviously sitting here in December 9th of Q4 with roughly about 20 days left of the quarter.
So if we start.
It starts looking at consoles and look at consoles first.
While Q1, and Q3 are traditionally lower quarters for.
For console sales Q4 is typically a high higher quarter for us.
And at this point, we feel very comfortable with the console component of our guidance.
And I just talked obviously about the utilization trends and like I said this is progressing well.
So in summary at this point in time, we feel good about our guidance and the guidance also reflects a moderate risk of COVID-19.
Okay.
I appreciate that and then as the follow up I don't want to get into 'twenty, two too much here, but what I'm really curious about is that as the clean flow launch I know its early days would love to hear the initial feedback and then.
Thoughts about the impact of that technology as we head into 'twenty two.
Yes.
So one of the things that we talked about during our S. One and in our road show is that the clean flow procedure.
An easier procedure.
Nothing is inserted into the twos and Theres, just a simpler procedure for the doctors to do and.
And thats consistent with the feedback that we're getting in the field.
We also talked about the fact that we clean for obviously, we expect higher contribution margins.
The other thing that we've talked about is that clean clothes already approved for sale in both the United States and Canada.
Now what we said in the roadshow in the S. One is that we're still in the limited market release.
We expect to be fully commercialized in in 2022.
At this point in time, we're not ready to communicate a broader launch date.
The program is performing well.
Select customers that we're working with and obviously thats. The date gets closer we'll make sure to update everyone on that launch date.
Got it thank you.
Thank you Matt.
Okay.
Thank you. The next question comes from the line of Michael Cherny with Bank of America. Your line is now open.
Good afternoon, congratulations on the first quarter as a public company.
John.
Very much appreciate the fact that you went into some of the differentiation on.
Hi.
Gentle waves.
What the advantages are what the safety other elements are when you think about the customers that you don't have yet what tend to be the biggest hindrances for what.
Seems to be a no brainer tradeoff in terms of patient satisfaction as well as time spent in share in volumes for the Endodontist why is something not buying a gentle way when you're pitching them.
Yes. Thank you Michael for that question and I agree with you there are some significant.
Obviously advantages of the general way of systems not just from a.
Ah clinical perspective, but also from a workflow perspective, and also an opportunity for the practice to use general wave to really grow their practice.
I think what Youre seeing in general right is that doctors that have converted are very happy with Magellan.
And at this point in time I think there is.
The number one thing that we need to work on is just education in the field, we need to continue to educate our.
Customers.
We have a lot of.
Customer stat at the get go day, they feel that their perfect. They feel that they're getting good good results.
And we need to educate them on the fact that failure rates in endodontics are high.
And that there is an opportunity to reduce those failure rates with.
Magellan vape.
And I think the other thing that we.
We need to work on is to also show the doctors that with <unk>.
You can also become a more efficient practice you can use this to become more efficient driving the clinical workflow in your practice and also the practice workflow and you can also use general way to attract more patients into the practice.
And I think the other thing that obviously is something that we spent a lot of time talking about in our prepared remarks is the commercial expansion.
Think one of the things that we need to do is we need to put in place more capital sales reps and more consumable reps in the field to drive that education and health.
Sell.
More systems to doctors and Thats one of the things that we're really happy about obviously, where today's too.
When we're talking about the fact that we have added more console reps and also more consumable reps.
Yes.
And along those lines.
You can take a very interesting and what appears to be successful approach on that bifurcation of the sales force. So can you just give us a sense, especially as a new company how quickly it takes from identifying the world that you want to fill towards gains I wanted to see towards having them get up in terms of total typical utilization typical pull through of that sales rep.
Yeah. So one of the things that we talked about during the road shows that we have hired a very seasoned experienced there.
Commercial Chief commercial Officer, Michael Smith and <unk>.
One of the things that we have been very clear about in within our sales force is the exact roles that these different to both the capital sales reps and the consumable reps will play.
If you look back and.
Sure.
In the early days of <unk> effectively had one sales team effectively the capital sales reps.
They have spent sometimes more than recently now more than 50% of their time looking for and taking care of existing customers, which meant that they are spending less than 50% of their time looking for.
New accounts now with the consumable reps.
Place, we can have the consumable reps really obviously focused on onboarding driving utilization helped promote.
The practice and really become a consultant to that practice and then we can have the capital sales rep really be focused on.
Selling more gentlemen consoles.
Really spelling out those activities.
Thats been really important to us.
Which I think is in line of what you are asking about.
I appreciate that and thanks again.
Thank you Michael.
Thank you Mr. Tony.
The next question is from the line of Nathan Rich with Goldman Sachs. Your line is open.
Hi, good afternoon. Thanks, a lot further questions.
Maybe starting with the gross margin in the quarter I think it was flat sequentially I think it was consistent with the guidance range that you had put in the S. One I guess, how do we think about the trajectory of gross margin in the fourth quarter and then next year could you maybe talk about your expectations around the ramp up of clean flow, how we'll see that play out.
Over the course of the year and what impact that could have on the cadence of gross margins next year.
Hey, Nick it's Mike Thanks for the question.
So as you pointed out our gross margin in Q3, we did show a significant improvement year over year.
Lot of that was due to absorption gains due to higher production levels and the volume. So we expect that trend to continue into Q4.
As we move forward, albeit with higher sales levels. So we're expecting that to inch up slightly.
I will just mentioned in the quarter, we did have some slight offset gross margin.
Q2, just some additional resource that we pulled in for clean flow and we'll have those resources onboard for Q4 as well. So we want to make sure that the clean for a launch is set up for success.
Moves into 2022.
We're not giving of course specific guidance on 2022, but I think directionally. What you can expect is that as we launch we will begin to convert customers.
In a measured way and towards the end of the year be able to have.
More clarity around what percentage of customers that converted and then what percentage of the business is expected to be screened for oil related.
Okay great.
And then maybe just a follow up.
John I think you said that you haven't really seen any supply chain issues. Most of the product is sourced domestically I guess.
Inflation is in the other big topic have you been seeing.
Any inflation on either components of general wave or components of the procedure instrument.
And anything different kind of.
And your expectations relative to maybe where we were three or six months ago.
Yeah. Thanks Nathan.
Starting with the supply chain side of this obviously thats not something thats really unique to the dental industry or endodontics segment, but this is something that youre going to continue to be all over we're talking to our suppliers and we have a great team here really.
That's really all over the supply chain side of this.
We will sometimes take larger inventory position to to manage.
Managed to risk of supply chain, but at this point in time.
We feel that we are in the top of the supply chain issues and that is not an immediate risk to the business.
With regards to inflation.
We are seeing obviously that across the board.
Not just from parts, but also from.
On the labor side, but I don't think Thats, something thats something that will be a significant impact to the business. Mike do you want to provide some additional comments on the inflation side.
Good question Nathan I mean, so we're not immune from what's happening in the broader economy.
Inflation, but at this point.
Our financials have not been materially impacted by.
Is it supply chain or inflationary issues.
Some isolated cost.
We've been largely able to offset internally. So I think we're in a good position for that but as Ben indicated we are.
<unk> measures with our inventory channels to make sure that we have adequate supply and we're controlling.
Great. Thanks for the questions.
Thank you. Thank you.
The next question is from Jon Block with Stifel. Your line is open.
Thanks, guys good afternoon.
I guess first in Salesforce is running ahead of our thoughts by a good about actually it seems on both capital and consumable reps and so maybe if you could just talk to that dynamic of that hiring pace that you've seen her experience and making sure. The right people are being hired most importantly, and any color on where you are pulling these.
Capital reps problem does that allow them to ramp up or come up the curve pretty quickly.
Yeah.
Yes, Thanks John.
Yes, you are right we were very happy where we are from a hiring perspective.
We talked about during our prepared remarks, we're currently at 'twenty through 'twenty three console sales reps and we're going to move to 24 by year end and also at this point in time, we have 17 consumable.
Sales reps. It is a like a lot of companies are talking about is a tough environment to hiring but I have to say that we're very happy with the caliber.
People that have joined the organization.
Typically the people that we're hiring are from med Tech obviously, the med tech space.
That are used to both capital sales.
Also a consumable sales.
So we feel really good about the caliber of individuals.
We have and I think that is going to put us in a good.
Trajectory as we head into 2022.
Got it fair enough and maybe just to pivot.
Some of our general weight checks, we saw on one of the few push backs around general way it was some.
Some of the dogs talking about building the platform and that that could be timely for Saab.
Can you talk a little bit about what elements of the procedure does clean full make more efficient I mean, you mentioned.
The setup and we know the insertion if you would but does just building a platform change at all is that made.
Is that simplified with clean flow, maybe if you could just talk about these early adopters and I know, it's early but just what they are seeing in terms of overall procedure time.
<unk> see.
I don't know in the light of.
The new procedure instrument and in an inflationary environment could it actually opened the door for price longer term. Thanks guys.
Okay.
Thank you John.
So let me talk first about the current procedure done I'll transition over to clean slow.
What we're seeing in general is that a conventional root canal procedure takes roughly about 90 minutes for an endodontist now it varies some are doing it faster some are doing it's slower.
About 90 minutes and what we're seeing is.
Transitioning doctors to elevate the doctors that are firing on all cylinders are able to move that procedure time, sometimes to 60 minutes, sometimes we see doctors moving to procedure that timed out to 2006 to 228.
Obviously, theres a lot of variation here.
But that's one thing that we're seeing we're also seeing that.
Doctors that are converting their procedures from conventional to generate typically moved from roughly about <unk> procedures being.
Single visit to roughly about 90% of their procedures being single visit again Thats. Another thing Thats really helps the efficiency side.
The building the platform components that you talked about that yes that is something that takes roughly about two minutes, some 30 minutes, but roughly about two minutes.
Doctors.
But that time is incorporated into those time savings so would be seized up and doctors are following our protocols and firing on all cylinders is really gives them an opportunity to say save time on the current procedure.
Now, let's talk about what changes when we move to two clean flow.
No.
For those that are.
A familiar with our procedure.
In the current procedure you need to size the HIFU to twos, you need to access to choose a certain way you need to also put on a specific ceiling cap.
Now the majority of those steps will go away with clean folks, who we do expect a little bit of a time savings.
When we moved to clean forward and we do have close to expect clean flow to become.
An easier procedure.
So we do expect.
Overall procedure time to go down.
With regards to.
Clean full in price that is something that we're looking carefully at.
When it comes to pricing that is not something that we are.
Here to discuss at this point in time, but that's something that we'll obviously communicate in more detail.
Go forward.
Perfect well a lot of great color. Thanks Bill.
Thank you John.
I will now pass the conference over the top for any closing remarks.
Hey, Thank you again, everyone for your time today I want to wish everyone, a safe and happy holiday, Mike and I look forward to meeting many of you at future Investor in healthcare conferences. We also look forward to meeting many of you one on one have a great day.
That concludes <unk> third quarter 2021 earnings conference call. Thank you for your participation you may now disconnect your lines.
Okay.