Q1 2022 Mitek Systems Inc Earnings Call
Good day, ladies and gentlemen, thank the Mitek systems first quarter fiscal 2022 financial results Conference call. Today's conference is being recorded at this time I'd like to turn the conference over to Todd Curly.
Our group. Please go ahead.
Thank you operator, good afternoon, and welcome to <unk> first quarter fiscal 2022 earnings Conference call with me on today's call are Mitek CEO Max correct Yep.
Frank <unk> before I turn the call over to Max and frankly, I'd like to cover a few quick items. This afternoon Mitek issued a press release announcing its first quarter fiscal 2020 to financial results that release is available on the company's website at Mitek systems Dot Com. This call is being broadcast live over the Internet for all interested parties and the.
Webcast will be archived on the Investor Relations page of the Companys website I want to remind everyone that on today's call management will discuss certain factors that are likely to influence the business going forward any factors discussed today that are not historical facts, particularly comments regarding our long term prospects and market opportunities.
It should be considered forward looking statements. These forward looking statements may include comments about the company's plans and expectations for future performance.
We're looking statements are subject to a number of risks and uncertainties, which could cause actual results to differ materially. We encourage all of our listeners to review our SEC filings, including our most recent 10-K and 10-Q for a complete description of these risks.
Our statements on the call today are made as of today January 27, 2022 of the company undertakes no obligation to revise or update publicly any of the forward looking statements contained herein, whether as a result of new information future events changes in expectations or otherwise. Additionally throughout this call we'll be discussing certain non.
GAAP financial measures today's earnings release, and the related current report on form 8-K describe the differences between our non-GAAP and GAAP reporting and present the reconciliation between the two for the periods reported in the release.
That said I'll now turn the call over to Mitek CEO Max Thanks.
Thanks, Todd it's really nice to see you in person today and good afternoon, everyone. Thank you for joining US today, we're off to a fast start in fiscal 2022, with our first quarter delivering very strong results.
Our digital identity verification revenue grew a strong 30% year over year as we continued to capitalize on the shift to digital and respond to our customers' needs to balance identification and fraud prevention with a smooth online customer experience.
As such we experienced record transactional volumes in identity. This quarter, whether it's verifying alone application authenticating travelers using biometrics to authenticate payment re authenticating access of a remote workforce or verifying the identity of a new customer the world's leading brands are using my.
The tech to enable trust instantly in this digital economy.
The demand for digital banking also continues to yield strong growth for our deposits business, which grew 22% year over year. All of this resulted in record first quarter revenue of $32 $5 million, which was up 25% year over year non-GAAP net income of $10 $2 million.
R 22 cents per diluted share up 65% year over year.
Cash flow from operations of $2 $3 million.
The case for digital transformation has never been more urgent and I'm honored to lead a team of global professionals, who continue to make a difference for customers and consumers as they navigate this economic and social shift.
Digging into each of our businesses, let's start with identity or.
Our continued growth at scale underscores our growing leadership in the digital identity ecosystem and the immense value we deliver to customers seeking to transform the customer experience during verification authentication and account opening.
Access to digitally enabled services continues to increase and this accelerating shift to digital creates an immense challenge for organizations as they strive to balance customer experience with financial risk.
Has the digital economy grows so does the opportunities for fraud and as long as criminals can cleverly exploit weaknesses in an institution's ability to distinguish legitimate customer from an impostor. This will this threat will continue to increase.
Digital identity verification has therefore moved beyond just being an enabler of digital commerce. It now serves as an integral element of most organizations technology stack and we believe the next decade of fraud prevention will be defined by an organization's approach to the lifecycle of continuous identity and access management.
Capabilities.
Traditionally companies have focused their energies on establishing proof of identity at the outset of a digital customer journey, such as opening a new account however, establishing trust in a personalized digital identity is an ongoing process.
This quarter's increase in transaction volumes from our banking and Fintech customers. In particular is evidence of this change as the digital identity authentication is successfully being adopted throughout their digital journey.
Our mobile verify solution powered by multimodal biometrics is transformational for organizations as they respond to consumer demand and establish the foundation of trust with their digital customers and protect this confidence at every touch point throughout the lifecycle.
Our industry, leading technology is used every day across over 80 million mobile devices around the world and it is the strongest starting point for fighting fraud.
Built on patented machine learning and computer vision algorithms are technology provides instant feedback regarding legitimacy authentication and liveliness of the applicant where their identity document life.
Liveliness detection has become an essential element of digital engagement and regulators regulators believe it is essential to fraud detection and prevention.
This quarter, we continued to progress our efforts related to liveliness detection and launched a document likeness product I'd.
Eli Doc I V live dock uses AI and builds on the same neural processing approach used in idea r&d's passive facial liveliness detection product to spot documents screen replay attacks in real time.
Because of today's modern high resolution video displays it is very difficult for the human eye to distinguish between a photo replica of a document and the real document. When this fraud is successful it often goes undetected until other fraud signals or a fraud event triggers an audit I do live dock is uniquely designed to.
Prevent screen replay attacks from proceeding to the next step in the identity verification process flagging potential fraud fast and early without any involvement from humans.
This new products significantly enhances fraud detection capabilities, while reducing costs and latency of such analysis and we are very excited to be the first to market with this innovation.
Accordingly, our study we conducted with payments who is a global leader for data news and insights for the connected economy more than half of U S. Consumers think biometric authentication methods are faster more convenient and more trustworthy than passwords or pins, you had only 10% of consumer.
There's are using them today in addition.
To enabling frictionless authentication and verification the role of biometrics has never been more relevant and in line with our quest for inclusive digital participation for all.
We at Mitek pride ourselves on our innovation and commitment to negating biometric bias and are in full support of the proposed AI Bill of rights.
As we continue to innovate we remain committed to exploring all avenues to achieve product superiority and expansion whether through partnership increased R&D innovation or acquisition.
Turning now to our deposit business and our industry, leading mobile check deposit solution.
The increasing use of smart devices improve connectivity and demand for high end user experience are the crucial aspects that are driving digital transformation at banks and allowing banks to deliver critical services to their consumers in the form of an app.
Or leveraging our mobile check deposit product as a catalyst for their app adoption and increased usage and thank bank of America announced last year that digital deposits accounted for 85% of transactions in one quarter fueled by almost 48 million checks deposited that same quarter as a result, we.
We continue to experience growth from our highly profitable deposits product line as more and more checks are being deposited digitally. This is just another example of the rapid shift we are seeing to the digital channel and with that shift the need for trust and security increases.
We also look forward to incremental growth in our deposits business as we further penetrate this market opportunity with the ongoing rollout of our newest solution check fraud defender.
In closing I couldnt be more optimistic about the opportunities ahead, and our strong results validate my trust in the Mitek nation to strengthen our market position in 2022 and beyond.
The growing demand for our market leading offerings demonstrates the pivotal role our products play in providing trust in the digital economy, and we are well positioned to take more share strong growth of our innovative biometric authentication technologies and the rise of our fraud network will incrementally add to our position as a market leader our glow.
<unk> trusted brand and the team of fraud experts remain committed to all of our customers and partners and our collective quest to fight fraud and abuse and enabled trust in a digital economy.
With that I'm going to call turn the call over to Frank discuss the fiscal first quarter financial results in more detail. Following Frank's remarks, we'll open the call to questions. Frank. Please go ahead.
Thanks, Max and thank you Mitek nation for all of your significant contributions and another record setting quarter, let's start with the Q1 revenue and operating result, Mitek generated first quarter revenue of $32 5 million or 25% increase year over year software and hardware revenue was $15 4 million up 26% year over year.
The increase in software and hardware revenue was due primarily to the timing of our mobile deposit Reorders service and other revenue, which includes transactional SaaS revenue maintenance and consulting services was $17 million for the quarter, an increase of 25% over Q1 last year. This increase was due to growth in transactional SaaS revenue, which increased 31% year over year.
<unk> to $11 6 million for Q1, 'twenty two deposits revenue increased 22% year over year to $19 1 million a day verification revenue increased 30% year over year to $13 4 million, we delivered strong software and hardware gross margins of 98% for the quarter gross margins on service and other revenue was 83%.
Scent for the quarter and total gross margin for the quarter was 90% compared to 84% in Q1 last year.
GAAP operating expenses, including cost of revenue were $27 6 million compared to $24 4 million in Q1 of last year and this increase is due to the continued investment to grow our identity business and the additional costs associated with the idea R&D acquisition.
Sales and marketing expenses for the quarter were $8 4 million compared to $7 4 million a year ago R&D expenses were $7 6 million compared to $6 2 million last year, and our G&A expenses were 6 million compared to $5 1 million a year ago GAAP net income for the quarter increased 44% to $3 1 million or <unk> <unk> per diluted share.
Our diluted share count was $46 2 million compared to $43 9 million shares a year ago. As a reminder, our earnings release includes a reconciliation between GAAP and non-GAAP net income we believe non-GAAP net income provides a useful measure of the company's operating results by excluding acquisition related costs and expenses stock comp expenses.
Litigation expenses and their related tax impact of these items.
non-GAAP net income for Q1 increased 65, 1% year over year to $10 2 million or 22 cents per diluted share. Our non-GAAP adjustments include $3 1 million of stock compensation expense $2 3 million of acquisition related costs and expenses $1 7 million in amortization of debt discount and issuance costs $1 4 million in cash.
Tax differences and $374000 in litigation expenses for the quarter. This was all offset by income tax pretax expenses of $1 9 million now turning to the balance sheet, we generated $2 3 million in cash flow from operations during the quarter, bringing our total cash and investments of $218 $2 million during the quarter, we repurchased approximately.
<unk> 599000 shares for $10 1 million at an average price of $16 95 per share as a reminder, our board authorized a $15 million share buyback program in June of last year, which runs through June 30 of 2022 in closing we are very pleased with our results which include record revenue for the first quarter as well as very solid.
non-GAAP net income and cash flow, we look forward to continuing to deliver amazing fraud prevention services at Mitek provides for a value global customers and driving increased shareholder value for all of our stockholders.
Operator that concludes our prepared remarks, please open up the lines for questions.
Ladies and gentlemen, if you'd like to ask a question you may do so by pressing star one on your telephone keypad using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment.
<unk> Star one for a question, we'll pause just a moment to assemble the queue.
We'll take our first question from Pavan <unk> with William Blair. Please go ahead.
Hey, Max me, Frank Congrats nice job there by you and the rest of the folks at Mitek.
I guess I wanted to touch a little bit to start off with.
If you look at the mobile deposit business.
You've touched you said a little bit in the past you had the ability to dial up asps, a little bit I'd love to understand a little bit of the underlying growth rates of the business because it has been sustainable I suspect more than people had expected and so that doesn't have sort of the growth rates and maybe sort of how asps are rising through the year and how quickly do you expect that market to grow some sense of sort of the underlying drives that market would be.
Helpful.
Sure thing, but wanted to hear from you and thanks for the kind words.
On the mobile deposit side, you know that.
So the three growth drivers in that business are obviously increased adoption of of using mobile for check deposit price increases that you mentioned and then bringing online additional capabilities like check fraud defender, which at this point is still very nascent.
As we're just rolling the product out now so really kind of coming back to those other two factors, while we have been consistent with that.
The price increases and getting fair values. Those increases are they're very modest I mean, it's a couple of percent.
For each one of these big service providers upon.
When they are up for renewal and when that contract's up for renegotiation.
Overwhelming majority of the growth has been just the amount of checks that are going through mobile deposit as opposed to ending up in branch or ATM.
Got it got it that's super helpful.
And then I think when we when I look at the identity verification business.
You know you've got some really great partnership it comes like Doc you sign Adobe.
Etc, I'd love to understand how the partnerships are progressing and sort of your go to market strategy and sort of getting more of those types of partnerships, where you're embedded in some of these core.
These statements are products.
You've done a really nice job with account opening things like type of documents and that sort of works on documents and becoming a really critical area and sometimes on a how the partnership progressing.
Go to market to drive more of those sorts of partnerships.
Sure thing, we're very proud of the partnerships, we have and the names that you mentioned in addition to that we've probably got another 15 major names that you'd be familiar with the likes of experience and other big service service bureaus and credit.
Credit bureaus.
And that is an important part of our growth plans today. Approximately these are just approximate numbers, probably 20% of our revenue in the identity business is derived through channel partners and we set a goal for our organization over the course of the next two years to double that and that's not by having the direct business go down.
That's fine.
Both both of the businesses increase and through the course of last fiscal year.
We made an investment in fortifying the team. So we have a dedicated worldwide team, establishing those alliances and partnerships of channel partners. So it's not just you know the names we were mentioning our global businesses, but theyre based in the United States. If we went to Spain. If we went to Amsterdam, if we went to London.
You know that that team is working with the names you would really know and it is a very intentional and focused approach. We're not just waiting for people to call US. We've got a list of what we think are there's probably 20 most important partners. They have we've created something called the perfect partner profile, and that's where that outreach is going.
So more to come but really good progress by that team so far.
Gotcha Gotcha. Thanks for the color I might squeeze one more and this is sort of a <unk>.
A high level question you touched on so this idea of biometrics, the easier and faster and I'd love to understand.
Where do you think the signature piece gets replaced by that so today, we sign all sorts of things and contracts that you need to sign for identification drivers like all sorts of things.
But the biometrics, whether it's voice or facial recognition fingerprinting of retina or whatever.
How do you guys think about sort of that taking share from signature. How do you think about that world shifting in sort of this becoming a more compelling way to identify someone I'd love to sort of think through like what the next five to 10 years drives or signature just going to be part of a contract and this is a better way to access applications and data just how do you parse that out as you think through that.
Long term trajectory here.
A slightly tangential to your business are critical to sort of some of the things you're investing in.
Yes, <unk>, we can always count on you for some thought provoking questions.
It's interesting when you think about a notary service what we're familiar with here in the United States, but happens globally.
When you know when that person comes to look at your government issued identity document and compare it to your face in person youre going to sign your mortgage paperwork or whatever the whatever the the example is <unk>.
Often they do take a fingerprint right. So theres a biometric involved there now it's all physical and it sits in our book and it's probably very hard to do any kind of searching in mountain view.
Usually out over time, but yeah.
Yeah, what we've seen and Covid has been a catalyst for some of this change what we've seen over the course of the last three or four years is obviously the need to have more simple consumer transactions.
Documented electronically and so the idea now where you can buy a car or a lease and have that paperwork.
And the car.
All executed and delivered without ever having goes into a dealership you know that's a hot category. So there's a lot of businesses out there trying to exploit that.
And.
Depending on what state you're in you can't do that because of the statutory requirements right you can't actually.
Use something like Adobe or Darkey signed to do that but that is changing and I think my answer to your question is yes, maybe maybe signatures electronic signatures are a physical wet signatures go away over time. It has much less to do with the technology and much more to do with the statutory changes that are required to facilitate that.
Gotcha. Okay. Now that's helpful. Arranging digitization trying to kind of drive these changes I. Appreciate the time gentlemen, thank you for taking my questions and.
Like I said, a nice job there.
Thanks Ivan.
We'll take our next question from Hamzah <unk> with Jefferies. Please go ahead.
Hi, This is Mario <unk> filling in for Hamzah.
First question is around your new IV live dock.
Product, maybe you can help size up what the addressable market is there and how big that could be over time I think when you guys came out with your check fraud defender then you kind of put some numbers around.
What the cost of fraud is in that market and maybe being able to win some business down on some of that cost savings.
Could you maybe perform a similar exercise for for this new product.
I think we could Mario but it feels like we would really be guessing I have to say this product is born out of experimentation by the R&D team through the course of last summer.
And leading up to last summer and when they introduced it in beta form at money 2020 in the fall.
The reception amongst folks, particularly channel partners that can embed. This in just like the last caller combine it with other things.
Other capabilities.
It's really the uptake and the interest has been Super high.
So it wasn't the kind of thing where we started with a business plan and said Hey, This is a tens of millions of dollars a year market that can grow at X rate. This is something that really kind of the innovation led the way and we're kind of chasing it.
We think its material we've already got customers that are paying us for it and are using it in production and a handful.
Im not dodging your question I don't want to I don't want to just kind of off the top of my head make something up we just don't have good market sizing for this but we'll keep you abreast as we continue to make progress in just a great job by the by the R&D team with us.
Great. Thank you and then just my follow up kind of staying on the fraud and I'd side.
In terms of your wins, where are those typically coming from are you taking business from any competitors are these customers that maybe were using some kind of in house technology that was inefficient and yours is better or.
It's just it's mostly customers that are white space.
Customers didn't have any type of product in place I mean, I'm, just trying to get a sense for where you're taking that from and then also on the sales cycle and in front of an IV.
I guess, how long is that right now and can you use it is it months is it a year can you win something and weeks just any any type of timeframe there would be helpful.
Yeah, Hey, Mario it's Frank I'm going to cover the first one Max can speak a little more to the sales cycle is all of the above I mean, there's if there's a there's folks that are new to the market don't have really kind of sophisticated big solutions, it's folks that.
We're replacing because we have capabilities that they don't or its new regulatory requirements that are suddenly, forcing folks into a situation where they've got to increase the robustness of the identity verification services. So I think it's a very interesting space I think as you think of the imperatives of identity and the imperatives of Onboarding and how is as a Max example earlier to provide.
And of the.
Our consumer transactions the way online quickly im buying a car I'm getting into a loan application.
A lot of it's driven by our company's kind of risk profile, you know how much money you play willing to to put in the market without really locking down identity. So I think if you think about this space is it's really addressing all of those opportunities companies with no with no solution Theyre trying to do it internally by themselves.
<unk> that are being pushed into a higher degree of regulatory scrutiny by virtue of their delivery of their service or where they're located geographically.
Those companies that realize that you know they're there the fraud as a network fight and as you think about the the imperative and the risk associated with what they're delivering you know they they require all of these fraud capabilities, including authenticating that somebody is real and tying that identity to a real world authenticated document itself et cetera, So we see that.
Those things are all happening in our marketplace today and depending on the cycle you know Max can speak to it now.
How much is your hair on fire it tends to drive a lot of the sales cycle, but certainly all three of those things are operative.
And on the sales cycle, there is not a one size fits all.
The previous caller talked a little bit about some of our channel and partnerships.
Those sales cycles can be very quick.
Capabilities are embedded.
In a broader application when were in a direct selling mode sales cycles are typically counted in quarters and.
It's very quick to be able to get.
Hi Tech identity Stu.
Stood up the implementation is broader than just tilting up.
The identity verification part for an Onboarding journey. So if you think about somebody opening a new account or.
Applying for a credit card.
Particularly in a bank a large financial institution, even a large fintech those are regulated entities and they have compliance and legal.
Teams that are that are monitoring making sure that these things are being done the appropriate way and so an implementation cycle end to end could literally be.
234 quarters.
So it varies it can be super short in some cases in other cases it could be years.
Great and then I just have one more this is a question I received from an Investor recently and I'd Love.
Love to hear your take on it.
Just on on the lawsuits with on the check deposit side with some of your customers.
I guess there was just some pushback on.
The ability to sell new products like check fraud defender to those customers because maybe potentially for lack of a better term there could be saucy.
Because they have a a liability.
To potentially worried about now or down the road.
And we would love to hear your take on your ability to sell to those existing customers.
Any new and incremental products.
Yes. So that's the first time ever hearing of that we have had none of that in our experience whether it's with the conventional products, we bring to banks for mobile check deposit or whether it's check fraud defender.
As a reminder, the two lawsuits that are out there relative to this area do not involve directly mitek in any way.
And we have had no customers that have reduced their usage or pushed back on us relative to adoption of weather check fraud defender or mobile check deposit.
As a result of of USA actions with the broader financial community about remote banking.
Great. Thank you so much.
Thanks, Mario Thanks, Brian .
We will take our next question from Mike Grondahl with Northland Securities. Please go ahead.
Hey, Thanks, guys.
If you could maybe just help a little bit.
30% growth in mobile Ids.
Okay.
Dissect that a little bit I assume that's probably transactions, mostly maybe a little bit more penetration in existing accounts maybe.
Maybe some new wins I don't know is pricing up a little there down a little there maybe just help us think through that.
That 30% growth a little.
Yeah, Hey, Mike It's Frank.
Actually again like like Marios question is all of the above.
We're seeing it as we mentioned in the in the release and in the talk track transaction revenue SaaS transaction rooms are up which is encouraging.
Definitely is an expansion of new logo opportunities as well so on all of those metrics that matter all of them are operative in driving that number for this quarter.
And maybe a little bit more of there Frank but I know you are getting positive price adjustments in mobile check are you getting that in.
Or are you, giving up a little bit of price.
Yes, the markets are so those product lines in the markets and what they are addressing are so completely different I don't think it's fair to make the comparison.
In the identity space.
The price that we get on a per transaction basis has more to do with the value that the use case of the value that the customers.
Involved in and that can that varies by geography that varies by whether it's use case, a gig economy company or whether it's a more traditional large financial institution.
I think our trends on pricing and identity are pretty much what they've been for the last year.
Got it got it.
And maybe check fraud defender did you have any revenue in the December quarter.
Yeah. So we had it was pretty nominal revenue you just as a reminder.
A reminder, for everybody who's maybe out there that wasn't was through the summer we announced the introduction of the product back in <unk> back in June and we've been working with some of our let's call them a charter member of the network to build out that product the revenues that youll see relative to check fraud defender, while they're nominal are really more around.
Patient support professional services and.
We're anticipating we'll start to see some transaction related revenue.
Either in the quarter that we're in now Q2 or Q3.
Got it March or June okay.
And then.
The press release noted $218 million of cash.
Have you guys been still kind of actively aggressively looking at acquisitions are you spending a lot of time there.
Yeah.
And Mike, It's a front of mind.
<unk>.
At constantly looking for opportunities and we're deeply involved in vetting those things so yes.
Got it Okay, hey, thanks, guys.
I appreciate it good to hear from Mike by Mike.
As a reminder, star one for questions. Please star one.
We'll take our next question from Allen Klee with Maxim Group. Please go ahead.
Yes, good afternoon.
IRS announced that it will soon require a selfie to access some other online tools and applications could you disclose if that's if that's you guys are using.
Yes, so Alan we don't we try not to.
We respect the confidential confidentiality agreements, we have with our customers I will remind you that government has not been an area of focus for us. So you can draw your own conclusion there.
Yeah.
Okay and then.
Could you.
Breakout your.
Posit software apply your deposit revenues by software versus services.
Yeah.
Yeah.
Hey, Alan it's Frank apologies for not a problem. Yeah. We don't we don't really tend to do that you know it's interesting that we had good growth in that business. It was largely driven on mobile deposit volume.
As you think about it in and so.
Break it out in detail, but I think a 20% growth.
<unk> indicative of just volume increases and the timing of orders.
And for the identity business, how did the revenue breakout for.
Right.
Numerous stuff versus the.
The legacy.
Yeah again, I think it's a it's a you know as I mentioned earlier in an answer I think really if you look at identity. The growth was driven by new logos that came on board.
Expansion within existing accounts.
So you kind of look at that it's really not we don't really peg it to a particular feature a new product, but overall.
The identity business grew nicely in the transactional SaaS revenue was up significantly which is a good indicator for us.
Okay, and what was your total depreciation and amortization expense for the quarter.
Yes, we run around 320000, something like that a quarter so were consistent with prior quarters.
Okay. Thank you so much.
Thanks Alan.
We'll take our next question from Scott Buck with H C. Wainwright. Please go ahead.
Hi, good afternoon guys.
Just a quick follow up.
Thanks, a quick follow up to Mikes question.
On the M&A front.
What's the what are you prioritizing there should we expect.
Bolt on deals or transactions similar to the idea R&D deal what's the what are you looking at.
Yes, we are definitely looking for things that will expand our capabilities, so logical adjacent kinds of capabilities that.
We can see that our customers need are going need so very similar to <unk> R&D.
And I'm not going to I'm not going to kind of review the categories, just because we don't want to tip, the hand too much but it's.
It's more around having the scope of capabilities than trying to have more scale with things that we already do or any kind of consolidation.
Okay.
Helpful color and second I was hoping you might be able to kind of give us an update on where we are in terms of kind of path to profitability on the I'd verification business.
And then how high your balance investing.
Investment growth.
Yes.
Scott Great question, it's Frank I mean, we've been saying now we think that towards the end of 'twenty three fiscal 'twenty three we're there and we.
We still we still see that kind of glide path.
So you can see the identity business as a percentage of revenue is growing which is great. So yeah. We continue to drive the business towards the end of fiscal 'twenty three as the as the kind of pivot point for profitability.
Great. That's really helpful. Frank and then last one for me just to get there what do you need in terms of.
Investment in the business, how are we going to see.
Substantial uptick in some of the Opex from these levels or should it be pretty consistent from from here on out yes. It is.
Not at all pretty consistent we built the plan, we baked in prudent growth and in areas of investments. So you are not going to see an uptick on opex to drive to pour gasoline on the fire. If you will so we're on a glide path, we're seeing it back in the fiscal 'twenty three and it won't affect we've planned our opex it won't incrementally affect our opex.
Perfect I appreciate the time this afternoon guys. Thanks a lot.
Thanks Scott.
Ladies and gentlemen. This concludes today's question and answer session. At this time electronic turn the conference back to the company for any additional or closing remarks.
Thank you operator, and thank you everyone for joining US today, we look forward to updating you again next quarter.
Our call has concluded have a wonderful day.
Yeah.
Ladies and gentlemen. This concludes today's conference. We appreciate your participation you may now disconnect.
[music].
Okay.
Yes.
Okay.
Yes.
[music].
Sure.
Yeah.
[music].
Hum.
[music].
Okay.
Yeah.
[music].
Hum.
[music].
Yes.
Yeah.
[music].
Yeah.
Okay.
[music].
Yeah.
[music].
Yes.
Yeah.
Yeah.
[music].
Okay.
Okay.
[music].
Yeah.
[music].
Yeah.
Yeah.
Yeah.
[music].
Okay.
Okay.
Yeah.
[music].