Q4 2021 RealNetworks Inc Earnings Call
Speaker 1: Greetings and welcome to the Real Networks Inc. 4th Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star-zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Mr. Brian Prenovost. Investor Relations, thank you, sir. You may begin.
Greetings and welcome to the real networks, Inc. Fourth quarter 2021 earnings conference call. At this time all participants are in a listen only mode. A brief question answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad.
As a reminder, this conference is being recorded I would now like to turn this conference over to your host Mr. Brian <unk> Investor Relations. Thank you Sir you may begin.
Thank you Laura and welcome to REO networks fourth quarter and full year 2021 financial results conference call before we begin I'd like to remind you that some matters discussed today are forward looking including statements regarding real networks future revenue operating expenses and adjusted EBITDA as well.
Speaker 2: Thank you, Laura, and welcome to Real Network's fourth quarter and full year 2021 Financial Results Conference.
Speaker 2: Before we begin, I'd like to remind you that some matters discussed today are forward-looking, including statements regarding real networks, future revenue, operating expenses, and adjusted EBITDA, as well as trends affecting its businesses and prospects for future growth and profitability, liquidity, and financial conditions.
All these trends affecting its businesses and prospects for future growth and profitability liquidity and financial condition.
Speaker 2: Other forward-looking statements include the company's plans to implement its strategy, invest in its products and initiatives, and restructuring efforts, as well as the expected growth, profitability, and other benefits from these activities.
Forward looking statements include the company's plans to implement its strategy invest in its products and initiatives and restructuring efforts as well as the expected growth profitability and other benefits from these activities.
Speaker 2: In addition, today's call contains certain forward-looking statements that relate to the December 2020 sale of Rhapsody International Inc., which does business as Napster, to Melody VR Group, PLC, and certain forward-looking statements that relate to Ciner Inc., including its future growth and profitability in financial action.
In addition, today's call contains certain forward looking statements that relate to the to the December 2020, with Rhapsody International Inc, which does business as napster to melody VR group plc, and certain forward looking statements that relate to senior rank, including its future growth and profitability and financial activities.
Speaker 2: Effective in 2020, Napster has been presented as a discontinued operation for accounting and disclosure purposes, and comparable historical periods have been recast to conform to this presentation.
In 2020, Napster has been presented as a discontinued operation for accounting and disclosure purposes, and comparable historical periods have been recast to conform to this presentation.
Speaker 2: Statements that express our belief and expectations, and all statements other than statements of historical facts, are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially from these forward-looking statements.
Statements that express our belief and expectations and all statements other than statements of historical facts are forward looking and involve a number of risks and uncertainties that could cause actual results to differ materially from these forward looking statements. We describe these risks and other risks in our SEC filings, including in the risk.
Speaker 2: We describe these risks and other risks in our SEC filings, including in the risk factors set forth in our most recent reports on Form 10-K and Form 10-Q In another...
Factors set forth in our most recent reports on Form 10-K , and Form 10-Q and in other reports a copy of those filings can be obtained from the SEC or from the Investor Relations section of our corporate website.
Speaker 2: A copy of those filings can be obtained from the SEC or from the investor relations section of our corporate website.
Forward looking statements made today reflect real networks expectation as of today February 19 2022.
Speaker 2: Four looking statements made today reflect REO Network's expectation as of today, February 9th, 2020.
Speaker 2: The company undertakes no duty to update or advise any forward-looking statements made during this call, whether as a result of new information, future events, or any other reason.
The company undertakes no duty to update or revise any forward looking statements made during this call whether as a result of new information future events or any other reason.
Speaker 2: In addition, we will present certain financial measures on this call that will be considered non-GAAP under the SEC's Regulation G. For reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure, please refer to the information included in our press release and in our Form 8K dated and submitted to the SEC today, both of which can be found on our corporate website at investor.realnetworks.com under the financials tab.
In addition, we will present certain financial measures on this call.
We will be considered non-GAAP under the SEC's regulation G. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Please refer to the information included in our press release and in our form 8-K dated and submitted to the SEC today, both of which can be found on our corporate web.
Right at Investor Dot real networks Dot com under the financials tab.
Speaker 2: With us today, our Rob Glazer, Chairman and CEO , Mike Ensing, President and COO, and Christine Chambers, Senior Vice President, CFO and Treasurer. Rob will discuss the company's strategy and the progress the company made during the fourth quarter of 2021. Mike will then provide a more detailed update on Rio's AI businesses.
With us today are Rob Glaser, Chairman and CEO , Mike Ensing, President and COO, and Christina Chambers, Senior Vice President CFO , and Treasurer, probably will discuss the company's strategy and the progress the company made during the fourth quarter of 2021, Mike will then provide a more detailed update on real AI businesses.
And Christine will conclude with a more detailed review of the financial results. After date. After today's prepared remarks, we will open the call to questions with that I will hand, the call over to Rob.
Speaker 2: Christine will conclude with a more detailed review of the financial results. After today's prepared remarks, we will open the call to questions. With that, I will hand the call to the moderator.
Speaker 3: Thanks, Brian . Good afternoon, everyone, and thank you for joining us today. My remarks will center on three topics. First, I'll discuss our 2021 results. Second, I'll discuss our games business and our plans to revitalize it. And third, and finally, I'll share some overall thoughts about our AI-based initiatives, safer in context. I'll then pass the baton on to Mike Ensing, who will discuss the AI initiatives in more depth. And then after Mike, Christine Chambers will go through our detailed financial
Thanks, Brian Good afternoon, everyone and thank you for joining us today.
March will center on three topics first I'll discuss our 2021 results second I'll discuss our games business and our plans to revitalize it and third and finally I'll share. Some overall thoughts about our AI based initiatives safer in context, I'll, then pass the baton onto Mike Ensing, who will discuss the AI initiatives in more depth and then after Mike Kristine Chambers will go through.
Our detailed financials.
Speaker 3: First, 2021. As I typically do at the beginning of a new year, I'd like to look back at the previous year. I'll start by discussing how our 2021 results compared to what we hope to achieve going into the year, and then share my perspective on how 2021 set us up for 2022 and beyond.
First 2021.
As I typically do at the beginning of a new year I'd like to look back at the previous year I'll start by discussing how our 'twenty one results compared to what we hope to achieve going into the year and then share my perspective on how 2021 set us up for 2022 and beyond.
Speaker 3: Our total revenue in 2021 was $58.2 million, down from $68.1 million in 2020. Inside of these results is a tail of three cities.
Our total revenue in 2021 of them was $58 $2 million down from $68 $1 million in 2020.
Inside of these results is a tale of three cities.
Speaker 3: Our 2021 growth city was our AI businesses, which grew meaningfully, safer by 44% and context by 14%. That said, this growth was not as fast as we'd hoped, especially for SAFER. We'll talk about what we've learned and how we're applying those learnings in just a few minutes.
Our 2021 growth city was our air businesses, which grew meaningfully safer by 44% in context by 14%.
That said this growth was not as fast as we'd hoped, especially for safer, we'll talk about what we've learned and how we're applying those learnings in just a few minutes.
A reboot city was games, while games had grown in 2020% to $28 6 million, which was up 12% over 2019 and 2021, our games revenue was $24 1 million down 16% compared to 2020.
Speaker 3: Our reboot city was games. While games had grown in 2020 to $28.6 million, which was up 12% over 2019, in 2021, our games revenue was 24.1 million, down 16% compared to 2020.
As 2021 unfolded I determined that we needed to make a leadership change in games, which I'll discuss in a few minutes.
Speaker 3: As 2021 unfolded, I determined that we needed to make a leadership change in games. With all discussion a few minutes.
Speaker 3: Our legacy city is the home of the rest of our businesses, which declined as expected from 33 million to 26 million, but continue to contribute financially on the bottom line.
Our legacy city is the home of the rest of our businesses, which declined as expected from $33 million to $26 million will continue to contribute financially on the bottom line.
Speaker 3: Our EPSM continuing operations was a loss of 48% per diluted share compared to a loss of 13 cents per share in the previous year. 2021 adjusted EBITDA was a loss of $13.28 million compared to a loss of $8.6 million in the prior year. Christine will explain the bridge between net loss and EBITDA and will discuss some non-mercuring elements that should be considered when comparing the two.
Our EPS from continuing operations was a loss of 48% per diluted share compared to loss of <unk> 13 per share in the previous year 2021, adjusted EBITDA was a loss of $13 8 million compared to adjusted EBITDA loss of $8 $6 million in the prior year Christine will explain the bridge between net loss and EBITDA and we will discuss some nonrecurring.
That should be considered when comparing the two years.
Speaker 3: We continue to have a strong balance sheet with $27 million of cash available to us and no debt. We'll use these resources to do this seriously to set us up for future growth. Our team will discuss our results in much greater detail in a few minutes as I mentioned.
We continue to have a strong balance sheet with $27 million of cash to be able to us and know that we will use these resources judiciously to set us up for future growth.
Dan will discuss our results in much greater detail in a few minutes as I mentioned.
Stepping back from the financial details our strategic focus continues to be our three big growth initiatives safer context and games.
Speaker 3: Stepping back from the financial details, our strategic focus continues to be our three big growth initiatives, safer context in games. Concurrently, we will continue to manage the rest of the business for stability and profit.
And currently we will continue to manage the rest of the business for stability in profit.
We remain very bullish on rails prospects our lineup of current and new AI products is very strong as is our sales pipeline and our new games leadership team has put together an excellent plan that I believe will set games up for significant growth in 2023 and beyond taken together will lead to we believe that in 2022, we will achieve double digit overall.
Speaker 3: We remain very bullish on real prospects. Our lineup of current and new AI products is very strong as is our sales pipeline. And our new games leadership team is put together an external plan that I believe will set games up for significant growth in 2023 and beyond. Taken together, we believe that in 2022, we will achieve double digit overall growth excluding games. And we expect games...
Excluding games and.
And we expect games to be approximately flat.
Speaker 3: This segues into my second topic, which is games. As I mentioned, it became clear to me by mid-2021 that the games leadership team we had had taken the business as far as they could and that we would need to make a change. We started a rigorous search process and found a fantastic new leader, Semineto Luli. We and Semineto got to know each other through a strategy consulting assignment if she did for us in the summer of 2021. Then in October , we appointed Semineto to our new head of game.
This segways into my second topic, which is games.
As I mentioned it became clear to me by mid 2021 that the games leadership team, we had taken the business as far as they could and then we would need to make a change we started a rigorous search process and found a fantastic new leader Seminario Louie.
We are assuming that I got to know each other through a strategy consulting assignment. She did for US in December 2021, then in October we appointed simulator to be our new head of games.
Speaker 3: Schumannett has hit the ground running and has put together a great plan that has strung the indoors. As it unfolds, we'll discuss it in more detail in months and a half.
So I mean that has hit the ground running and has put together a great plan that a strong indoors as referrals will discuss it in more detail in the months ahead.
The global market for gaming is huge and it's one where female players providing important according to a recent study by App Annie 64% of players of the top 100 games in the U S are women similar stats for female gamers are reflected in Canada, France, Germany and Australia.
Speaker 3: The global market for gaming is huge and it's one where female players are vitally important. According to a recent study by App Annie, 64% of players of the top 100 games in the US are women. Similar stats for female gamers are reflected in Canada, France, Germany and Australia. Compare that to the games themselves where female protagonists are represented less than 5% of people.
Compare that to the games themselves were female protagonist represented less than 5% of games. This data suggests that a significantly unpack tap market exist, where we can expand gaming options and increased interaction with a differentiated products created for and often by women.
Speaker 3: The data suggests that a significantly unpat-pat market exists where we can expand gaming options and increase interaction with the differentiated products created for and often by women.
<unk> already had a focus on female players before assuming it arrived she's doubling down on that focus will make significant operational business changes that I believe will result in significant growth in 2023 and beyond.
Speaker 3: Game has already had a focus on female players before Seminet arrived. She's doubling down on that focus while making significant operational business changes that I believe will result in significant growth in 2023 and beyond.
Speaker 3: Now I move on to my final topic, a few words on our AI businesses. Safer and content.
Now I'll move on to my final topic, a few words on our AI businesses safer and context as mentioned safer our computer vision platform grew 44% in 2021 over 2020, while there is significant growth it is lower than we'd hoped for it and it was lumpy we've learned a lot about with a safer value proposition works for a globally, namely in <unk>.
Speaker 3: As mentioned, SAFER, our computer vision platform, grew 44% in 2021 over 2020. While this is significant growth, it's lower than we've hoped for and was lumpy. We've learned a lot about where the SAFER value proposes and works well globally, namely an access control on authentication and where it's a more selective fit, specifically in the safety and security or SNS market. We see great SNS opportunity in our U.S. federal business and it's select other geographers.
<unk> controlling our authentication and where to more selective fit specifically in the safety and security or SNS market, we see great SNS opportunity in our U S federal business and select other geographies Accordingly, we've retooled both our product initiatives at our sales focus to focus on the areas with the greatest potential growth and the least friction and if.
Speaker 3: Accordingly, we've retooled both our product and shooters and our sales focus to focus on the areas with the greatest potential growth and the least friction. In a few minutes, Michael discussed safe room more detail. A few words about
Few minutes, Mike will discuss safer and more detail a.
A few words about context, our natural language processing business, it's 14% in growth in 2021 was close to our plan in total dollars that said, we believe the progress we made in 2021, improving and maturing our context product line sets us up for accelerated growth in 2022, and beyond which Mike will discuss in more depth in a minute.
Speaker 3: It's working percent growth in 2021 with close to our plan in total dollars. That said, we believe the progress we made in 2021, improving and maturing our context product line sets a separate salary growth in 2022 and beyond, which might we'll discuss in more depth in a minute.
Finally, a few closing words 2021 was a challenging year for the world as a whole as we've all had to slog through the second year of the pandemic, while vaccines are remarkable and have saved millions of lives they have not yet putting into the pandemic and to all the ways that disrupted our lives.
Speaker 3: 2021 was a challenging year for the world and the whole as we've all had to slog through the second year of the pandemic. While vaccines are remarkable and have saved millions of lives, they have not yet put into the pandemic and to all the ways that disrupted our lives. I'm deeply grateful to all of our stakeholders, employees, customers and partners who've stayed focused and continued to work hard to achieve excellence in spite of the turbulence around us. I foresee brighter days
Grateful to all of our stakeholders employees customers and partners, who have stayed focused to continue to work hard to achieve excellence in spite of the turbulence around us.
See brighter days ahead for us all.
Speaker 4: And with that, let me pass the mic. To Mike. Thank you, Rob. I'd like to briefly discuss progress made in our two AI-based businesses safer and content.
That let me pass the mic to Mike.
Thank you Rob I'd like to briefly discuss progress made in our two AI based businesses safer in context.
Speaker 4: Starting with Safer, sales grew by 44% in 2021. Although the annual growth would be considered healthy and most businesses, we fell short of internal expectations.
Starting with safer sales grew by 44% in 2021, although the annual growth would be considered healthy in most businesses, we fell short of internal expectations.
Speaker 4: In 2021, we significantly advanced our product, delivered customer and partner successes we will build upon, and gained a better understanding of market needs shaping our strategy for 2022.
In 2021, we significantly advanced our product delivered customer and partner successes, we will build upon and gained a better understanding of market needs shaping our strategy for 2022.
During the year, we advanced our product across several dimensions.
Speaker 4: During the year, we advanced our product across several dimensions. The safer algorithms made significant progress in accuracy while maintaining our size and speed advantages, reinforcing our leadership position for real-world live video applications.
Defer algorithms made significant progress and accuracy, while maintaining our size and speed advantages reinforcing our leadership position for real World Live video applications.
Speaker 4: We continue to leverage our ability to easily embed our software on popular chipsets, allowing the safer product to be easily and cost effectively deployed on edge devices and stand alone hardware, giving our customers a flexible and high performance solution.
We continue to leverage our ability to easily embed our software on popular chipsets, allowing a safer product to be easily and cost effectively deployed on edge devices, and standalone hardware, giving our customers a flexible and high performance solution.
Speaker 4: We have added enterprise-level features like unlimited face registrations, event archiving, and central server administration.
We have added enterprise level features like unlimited face registrations event archive archiving and Central server administration.
Speaker 4: Finally, we have developed two different types of anti-spoofing technology, RGB-livenous and structured light-livenous. These new technologies will allow our customers to protect themselves from presentation attacks for an added level of security.
Finally, we have developed two different types of anti spoofing technology RGB liveliness in structured light <unk>. These new technologies will allow our customers to protect themselves from presentation attacks for an added level of security.
Looking forward on the commercial side of the business. We are placing increased focus on access control and authentication use cases regarding access control. There is a large and growing market and strong customer need for touch list biometric access control products.
Speaker 4: Looking forward, on the commercial side of the business, we are placing increased focus on access control and authentication use case.
Speaker 4: Regarding access control, there is a large and growing market and strong customer needs per touchless biometric access control product.
Speaker 4: This space provides for a great application of our algorithm that is differentiated by being fast, accurate, and compact, making it especially valuable for customers seeking to embed space recognition, liveness spoofing detection, and person-centric analytics directly in devices operating at the edge.
S space provides for a great application of our algorithm that is differentiated by being fast accurate and compact, making and especially valuable for customers seeking to embed face recognition liveliness spoofing detection and person centric analytics directly in devices operating at the edge.
During 2022, we will be launching a suite of products that we think will provide clear differentiation versus other products in the access control market today.
Speaker 4: During 2022, we will be launching a suite of products that we think will provide clear differentiation versus other products in the Access Control Market today.
Speaker 4: In the authentication space, we plan on building on 2021 customer successes to provide facial recognition solutions to both authentication providers and end customers.
And the authentication space, we plan on building on 2021 customer successes to provide facial recognition solutions to both authentication providers and end customers.
Speaker 4: As Rob mentioned, we will hone our focus in the safety and security space and continue to pursue opportunities in key geographic commercial markets and the federal side of the business.
As Rob mentioned, we will hone our focus in the safety and security space and continue to pursue opportunities in key geographic commercial market and the federal side of the business.
Speaker 4: Regarding the federal side of the business, we will continue to build upon the successes we had last year.
Regarding the federal side of the business, we will continue to build upon the successes we had last year in.
Speaker 4: In the fourth quarter of 2021, we were awarded an additional Phase II SIVER, a Small Business Innovation Research Award, for the U.S. Air Force to explore facial recognition use on unmanned sensors and evaluating safer running on a compact process.
In the fourth quarter of 2021, we were awarded an additional phase III <unk>, a small business innovation Research award for the U S Air Force to explore facial recognition recognition used unmanned sensors and evaluating safer running on a compact processor.
Speaker 4: The award is an excess of $500,000 with the work being completed by the end of 2022.
The award is in excess of $500000 with the work being completed by the end of 2022.
Speaker 4: In addition, during Q4 2021, we awarded two Phase I zippers that will help us expand our face recognition capabilities, increase our ability to detect and identify faces under more degradated scenarios, introduce new object detection capabilities, and provide more comprehensive analytics.
In addition, during Q4 2021, we were awarded two phase <unk> that will help us expand our face recognition capabilities increase our ability to detect and identify faces under more degradation scenarios.
Introduced new object detection capabilities and provide more comprehensive analytics.
Speaker 4: While phase ones are relatively small, monetarily in value, they open up opportunities for further work in 2022.
While phase one is a relatively small monetary and value. They open up opportunities for further work in 2022.
Speaker 4: Now I'll move to a discussion of context, our natural language processing clip.
Now I'll move to a discussion of context, our natural language processing platform.
Speaker 4: We increase revenue 14% year over year and believe we have a path to accelerate growth in 2022.
We increased revenue, 14% year over year and believe we have a path to accelerate growth in 2022.
Speaker 4: As discussed on prior calls, our team is focused on delivering AI-based products and services to help facilitate improved voice and messaging based services for our customers.
As discussed on prior calls our team is focused on delivering AI based products and services to help facilitate improved voice and messaging based services for our customers.
Speaker 4: Our AI-based filtering tools leverage more than a billion SMS, MMS messages that are processed daily to deliver the best filtering tools for our customers.
Our AI based filtering tools leveraged more than 1 billion SMS MMS messages that are processed daily to deliver the best filtering tools for our customers.
In 2022, we believe we will see accelerated growth for three reasons.
Speaker 4: In 2022, we believe we will see accelerated growth for three reasons. One, increased industry demand due to changing market and federal regulatory conditions, two, a more robust mature and further differentiated Omni-channel product, and three, an expansion of the sales channels that we sell into.
One increased industry demand due to changing market and federal regulatory conditions.
<unk>, a more robust mature and further differentiated omnichannel product and.
And three an expansion of the sales channels that we sell into.
Demand for the context product is only growing the average number of spam tax a person receives per month was $16 nine up from $14 seven in 2020 $10 six in 2019 and $8 five in 2018.
Speaker 4: Demand for the context product is only growing. The average number of spam texts a person receives per month is 16.9 up from 14.7 in 2020, 10.6 in 2019, and 8.5 in 2018.
Speaker 4: It was estimated that 60 million Americans fell victim to phone scams totaling approximately 30 billion, according to Truecallers 2021 spam and scam report.
It was estimated at 60 million Americans fell victim to phone scans totaling approximately $30 billion. According to true color as 2021 spam and scam report.
Speaker 4: We believe the environment is right for more regulation, which means telecom, the major enterprises will demand more tools like context.
We believe the environment is right for more regulation, which means telecom a major enterprises will demand more tools like context.
Speaker 4: On the product front, we have developed and proven out several new capabilities expanding our product set to a full omni-channel offering while leveraging several key differentiators.
On the product front, we have developed and proven out several new capabilities, expanding our product set to a full omnichannel offering while leveraging several key differentiators.
Speaker 4: Building on our core MMS, MMS fraud and spam prevention capabilities, the offering now includes voice with mobile calling blocking, image hashing that's inline scanning of text.
Building on our core MMS, and then SMS fraud, and spam prevention capabilities. The offering now includes voice with robo, calling blocking image hashing. That's in line scanning of text 10, DLC 10 digit long code interconnect support and brand smashing detection and prevention.
Speaker 4: 10 DLC, 10 digit long code interconnect support, and brand smishing detection and prevention.
<unk>.
Speaker 4: In addition, we have continued to enhance our product differentiation. The context suite of products are differentiated by our robust data models leveraging over four years of ground truth, labeling and training for our AI message classification, our ability to examine both content and metadata.
In addition, we have continued to enhance our product differentiation.
Context suite of products are differentiated by a robust data model leveraging over four years of ground truth labeling and training for our AI message classification, our ability to examine both content metadata.
Speaker 4: Tremendous platform flexibility with capability to be deployed on the cloud, on-premise, or hybrid, in both fully manage or self-service environments. And finally, great scalability with the ability to process up to tens of billions of messages per day.
Tremendous platform flexibility with capability to be deployed on the cloud.
Miss or hybrid and both fully managed self service environments.
And finally, great scalability with the ability to process up to tens of billions of messages per day.
Speaker 4: On the selling side, we are continuing our focus on the needs of U.S. and international carriers and broadening our efforts to also include UCAS, Unified Communications as a Service, and CNAM, caller name providers. We are seeing increased interest by these types of customers. We believe this is driven by changing needs in the market and enhanced reputation and trust in our product that has matured through the years.
On the selling side, we are continuing our focus on the needs of U S and international carriers and broadening our efforts to also include <unk> Unified communications as a service and <unk> color name providers. We are seeing increased interest by these types of customers. We believe this is driven by changing.
Needs in the market and enhanced reputation and trust in our product that has matured through the years.
Speaker 4: With that, I will now turn the call over to Christine discuss financial results in greater detail. Christine?
With that I will now turn the call over to Christine discuss financial results in greater detail Christine. Thanks.
Speaker 5: Thanks, Mike, and good afternoon, everyone. In my remarks today, our first review are consolidated both quarter and full year results, followed by a more detailed discussion of our segment business performance.
Thanks, Mike and good afternoon, everyone.
My remarks today I will first review, our consolidated fourth quarter and full year results followed by a more detailed discussion of our segment business performance.
Speaker 5: As a reminder, we completed the deconsolidation of SENA as of June 30th, 2021, and as such, cars related to SENA are not included in our financial results in the second half of 2021. Now,
As a reminder, we completed the deconsolidation of Sina as of June 32021, and as such costs related to <unk> are not included in our financial results in the second half of 2021.
Now turning to our results.
Speaker 5: Total revenue for the year was $52.8 million compared to $68.1 million in the prior year.
Total revenue for the year was $52 8 million compared to $68 1 million in the prior year.
Speaker 5: For the full year 2021, growth in our AI businesses was more than offset by declines in our games and foundation business.
For the full year 2021 gross in our AI businesses was more than offset by declines in our games and foundation businesses.
Speaker 5: In 2021, mobile services revenue decreased approximately 3.1 million year over year.
In 2021 mobile services revenue decreased approximately $3 1 million year over year.
Speaker 5: Safer revenue increased 44%, primarily due to increased commercial sales. Context grew 14% year over year driven by the addition of new context services.
<unk> revenue increased 44%, primarily due to increased commercial sales.
<unk> grew 14% year over year, driven by the addition of new contact services.
Speaker 5: and growth from the year from our AI businesses, again, was more than offset by declines in our Ringback tones business.
And growth from the year from our AI businesses again was more than offset by declines in our ringback tones business.
Consumer media revenue in 2021 decreased $2 $3 million year over year, driven by declines in our legacy PC business and Lumpiness in our IP business.
Speaker 5: Consumer media revenue in 2021 decreased 2.3 million year over year, driven by declines in our legacy PC business and lumpiness in our IP business.
Speaker 5: Games revenue for the year was down 4.5 million compared to the prior year. The decrease was due to sales declines in both our legacy and free-to-play mobile games.
Games revenue for the year was down $4 5 million compared to the prior year. The decrease was due to sales declines in both our legacy and free to play mobile games.
Speaker 5: as Rob discussed earlier in the call, we're excited about new leadership in the game segment and the direction that can take the business while recognizing the progress from a revenue growth perspective made still take a few quarters.
As Rob discussed earlier and Nicole we are excited about new leadership in the game segment and the direction that can take the business, while recognizing the progress from a revenue growth perspective may still take a few quarters.
Speaker 5: Consolidated gross profit in 2021 was $44.4 million compared to $51.6 million in the prior year. The decrease driven by lower revenue. As a percentage of revenue, gross margin was 76% and flat compared to the prior year.
Consolidated gross profit in 2021 was $44 4 million compared to $51 6 million in the prior year. The decrease driven by lower revenue as a percentage of revenue gross margin was 76% and flat compared to the prior year.
Speaker 5: Total operating expenses in 2021 with $65.3 million compared to $56.6 million in the prior year.
Total operating expenses in 2021, with $65 3 million compared to $56 6 million in the prior year.
Speaker 5: The increase was primarily due to the $8.6 million favorable fair value adjustment in 2020 related to the contingent consideration from our NAFTA acquisition compared to the $1 million favorable adjustment in 2021.
The increase was primarily due to the $8 6 million favorable fair value adjustment in 2020 related to the contingent consideration from our napster acquisition compared to the $1 million favorable adjustment in 2021.
Speaker 5: Operating loss in 2021 was 20.9 million compared to 5 million in 2020. This was due to the 7.2 million decline in gross profit. And in 2020, a 7.6 million dollar higher benefit related to the fair value adjustment of the contingent consideration.
Operating loss in 2021 was $20 9 million compared to $5 million. In 2020. This was due to the $7 $2 million decline in gross profit and in $2027 6 million higher benefit related to the fair value adjustment of the contingent consideration.
Speaker 5: Net loss for the full year from continuing operations attributed to real networks with 21.2 million or 48 cents per diluted share compared to a net loss of 4.8 million or 13 cents per diluted share in the prior year.
Net loss for the full year from continuing operations attributed to real networks with $21 2 million or <unk> 48 per diluted share compared to a net loss of $4 8 million or 13 cents per diluted share in the prior year.
Speaker 5: In addition to the items I just mentioned, included in 2021, with a net loss, with a $7 million non-tash fair value adjustment to Napster's stock, offset by net gains related to Sina or 4.1 million, and net gain on the forgiveness of the PPP loan of 2.9 million.
In addition to the items I just mentioned included in 2021 with a net loss net loss was <unk> 7 million.
Noncash fair value adjustment to <unk> stock.
Offsetting by net gains related to senior $4 1 million and a net.
Net gain on the forgiveness of the PPP loan of $2 9 million.
Speaker 5: 2021 adjusted EBITDA was a loss of $13.8 million compared to adjusted EBITDA loss of $8.6 million in the prior year.
2021, adjusted EBITDA was a loss of $13 8 million compared to adjusted EBITDA loss of $8 6 million in the prior year.
Speaker 5: Turn into the fourth quarter. Total revenue was 13.4 million compared to 20 at 17.6 million in the prior period, and 14.3 million in the prior quarter.
Turning to the fourth quarter total revenue was $13 4 million compared to 2017.
$17 6 million in the prior year period, and $14 3 million in the prior quarter.
Speaker 5: Mobile services revenue decreased 1.7 million or 23% year-a-year, and 100,000 or 2% sequentially. Safer revenue declined 40-
Mobile services revenue decreased $1 7 million or 23% year over year and 102% sequentially.
Safer revenue declined 41%.
Speaker 5: year over year, lapping a significant Q4 last year, but grew 23% sequentially.
Year over year lapping a significant Q4 last year, but grew 23% sequentially.
Speaker 5: Context grew 19% in Q4 year over year and 15% sequentially.
Context grew 19% in Q4 year over year and 15% sequentially.
Speaker 5: Our remaining legacy products within this segment declined year-over-year and sequentially.
Our remaining legacy products within this segment declined year over year and sequentially.
Speaker 5: Consumer Media declined 1.2 million or 36% year-over-year and 600,000 or 22% sequentially, primarily due to lumpiness in our IP business.
Consumer media declined $1 2 million or <unk>, 36% year over year.
600000, or 22% sequentially, primarily due to lumpiness in our IP business.
Speaker 5: GAINS declined 1.3 million year over year or 19%, and a sequential decline of 200,000 or 4%.
Gains declined $1 $3 million year over year, or 19% and a sequential decline of $200000.
4%.
Speaker 5: On a year of a year in sequential basis, the decreases would due to sales declines in both on legacy and free-to-play mobile games.
On a year over year and sequential basis. The decreases were due to sales declines in both our legacy and free to play mobile games.
Speaker 5: Adjusted EBITDA for the fourth quarter was a loss of $3.7 million compared to a loss of $900,000 in the prior year period and a loss of $2.7 in the prior quarter.
Adjusted EBITDA for the fourth quarter was a loss of $3 7 million compared to a loss of 900000 in the prior year period, and a loss of $2 seven in the prior quarter.
Speaker 5: Net loss for the fourth quarter was 1.8 million and was impacted by a 2.1 million net gain related to CINO.
Net loss for the fourth quarter was $1 8 million and was impacted by a $2 1 million net gain related to see them.
Speaker 5: A full reconciliation of our net last who adjusted EBITDA can be found in our fourth quarter press release.
A full reconciliation of our net loss to adjusted EBITDA can be found in our fourth quarter press release.
Speaker 5: Now turning to our full year 2021 segment results in more detail.
Now turning to our full year 2021 segment results in more detail.
Mobile services segment contribution margin was a loss of $5 9 million compared to a loss of $4 2 million in the prior year the year over year change was driven primarily by decreased revenue in our legacy businesses.
Speaker 5: Mobile Services' segment contribution margin was a loss of 5.9 million compared to a loss of 4.2 million in the prior year. The year of a year change was driven primarily by decreased revenue in our legacy business.
Speaker 5: consumer media segment contribution margin with a gain of 1.1 million compared to 1.5 million in the prior year. Decrease was primarily due to lower revenues and timing of IP license revenue.
Consumer media segment contribution margin with a gain of $1 1 million compared to $1 5 million. Prior year decrease was primarily due to lower revenues and timing of IP license revenue.
Speaker 5: And GAIN's segment contribution margin was a loss of 1.3 million compared to a gain of 1.6 million in the prior year.
And games segment contribution margin was a loss of $1 3 million compared to a gain of $1 6 million in the prior year.
Speaker 5: Revenue declines from fewer subscribers and declining traffic with the primary drivers of the year-over-year decline
Revenue declines from fewer subscribers declining traffic were the primary drivers of the year over year decline.
Turning to our balance sheet at December 31, 2021, we had $27 1 million in unrestricted cash and cash equivalents compared to $23 9 million at December 31, 2020.
Speaker 5: Turning to our balance sheet, at December 31, 2021, we had $27.1 million in unrestricted cash and cash equivalents, compared to $23.9 million at December 31, 2020.
Speaker 5: We had no debt and no barons outstanding on our revolving credit facility.
We had no debt and no borrowings outstanding on our revolving credit facility.
Speaker 5: A balance sheet remains strong and we'll use these resources judiciously to set us up for future growth.
Our balance sheet remains strong and we will use these resources judiciously to set us up for future growth.
Now turning to our outlook.
Speaker 5: For the first quarter ending March 31st, 2022, we currently expect total revenue to be in the range of 12 million to 14 million, and adjusted EBITDA's last to be in the range of 5.5 million to 4 million.
For the first quarter ending March 31, 2022, we currently expect total revenue to be in the range of $12 million to $14 million and adjusted EBITDA loss to be in the range of $5 5 million to $4 million.
Speaker 5: We expect Q1 will be a trough for the year and believe the initiatives we undertook in 2021 will set us up on a path towards growth this year and beyond.
We expect Q1 will be a trough for the year and believe the initiatives. We undertook in 2021 will set us up on a path towards growth this year and beyond.
Speaker 5: re-anticipate achieving double digit revenue growth in 2022, excluding the game's business.
We anticipate achieving double digit revenue growth in 2022, excluding the games business.
Speaker 5: With that, we'll now open the call for questions. Operation?
With that we'll now open the call for questions.
Operator.
Speaker 1: At this time we'll be conducting a question and a session. If you would like to ask a question, please press star one on your telephone keypad. The confirmation to indicate your line is in the question queue. You may press star two to remove your question from the queue. For participants using speaker equipment, it may be necessary for you to pick up your hands up before pressing the star keys. One moment, Molly.
At this time, we'll be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two zero move your question from the queue for participants using speaker equipment. It may be necessary for you to pick up your handset.
Before pressing the star keys, one moment Molly pool for questions.
Speaker 1: The first question comes in line of Mark Argento with Lake Street Capital Markets, you may proceed with their questions.
First question comes from the line of Mark Argento with Lake Street Capital Markets. You May proceed with your question.
Speaker 6: Hey Rob, Mike and Christine, thanks for taking my questions. I just wanted to kind of hit on both segments, starting with AI in particular.
Hey, Rob.
Christine.
Thanks for taking my questions.
Wanted to kind of hit on both segments, starting with AI in particular it seems.
Speaker 6: Seems like you guys have had some success in terms of getting the solution set into the hands of some bigger players, working with guys like NTP Docomo and other systems integrators, also in the government channel. It seems like a lot of the initial touchpoints have been bigger projects, or the front end of bigger projects or bigger initiatives versus...
You guys have had some success in terms of getting the solutions into the hands of some bigger players.
And with guys like NTT Docomo.
Xena greater also in the government channel, but it seems like a lot of the initial touch points.
Bigger.
Bigger projects or the front on the bigger projects are bigger initiatives versus.
Speaker 6: kind of more nuts and bolts applications. Any thought in terms of targeting additional markets with the solution? You know, particular municipalities seem to be getting more and more involved, other types of solutions that you could potentially see going from conceptual to actual full deployments with additional revenue behind it.
Well, it kind of more nuts and bolts applications any thought in terms of targeting additional markets with the solution in a particular municipality you seem to be getting.
More and more involved other types of solutions that you could potentially see from conceptual.
Full deployments with additional revenue behind it.
Speaker 3: Well, I see a few things marked good to talk to you. Hope everything's well with the neural world. As Mike mentioned, as I thought.
Well I'd say a few things Mark it's good to talk to you hope everything is well with the in your world.
As Mike mentioned and as I touched on a little bit.
Speaker 3: We definitely think that focusing on access control is probably the best path we have.
Definitely think that focusing on access control is probably the best path we have for scaling.
Speaker 3: for scaling the AI business globally, the safer business globally. Security and surveillance, which has historically been probably our primary focus, is still gonna be a focus for our federal business and for certain geographies.
The VA business globally with a safer business globally.
Security and surveillance, which has historically been.
Probably our primary focus is still going to be a focus in for our federal business in certain geographies, but I think we've come to see based on what we've observed with customers.
Speaker 3: But I think we've come to see based on what you've observed with customers.
Some of what they've been.
Coming to us to talk about our good with outside and then whether it actually powered through through sale and deployment is that access control it looks like a fertile market for us.
Speaker 3: to talk about or getting with us on and then what it actually followed through sale and deployment is that access control looks like a fertile market for us in many different geographies around the world in many segments. So that's sort of a partial answer to your question. In terms of deal size, I don't think we typically comment on deal size, but I think it's fair to say that the goal would be to have a business where you have a robust pipeline. You've got a lot of people doing initial deployments, some of which might be small because they're in trial phase.
In many different geographies around the world and in many segments. So that's sort of a partial answer to your question in terms of deal size I don't think we typically comment on deal size, but.
I think it's fair to say that the goal would be to have a business, where you have a robust pipeline you've got a lot of people doing initial deployments.
Speaker 3: some of which might be small because they're in trial phase or because they're experimenting with, you know, for instance, branch offices before they go to the headquarters. I was on a call with a customer this week that talked about they like doing some of their international work first.
Some of which might be small because they are in trial phase or because they're renting.
Right.
Branch offices before they go to the headquarters.
On our call with a customer this week that talked about they like doing some of their international work first.
Speaker 3: They're primarily US-based, but they find that the international operations work is kind of a laboratory. So, you know, we definitely see there's a multi-phase development cycle for big customers, and we're good with that. Sometimes you go straight to large deals. We've done that a few times, and we like those, of course, but I think we try to be...
Primarily U S based but.
They find that the international operations work as kind of a laboratory. So we definitely see theres, a multi phase deployment cycle for big customers.
And we're good with that sometimes you go straight to large deals we've done that a few times and we like those of course, but I think we try to be.
Speaker 3: persistent and focus on what we think are going to be, you know, larger aggregate opportunities, whether it's lots of customers buying a medium amount or certain verticals where it's a small number of customers Make it place in very big orders. We're happy to do either one. No mic if you want to add anything
Persistent.
Focus on.
What we think are going to be.
Larger and larger.
We get opportunities, whether it's lots of customers buying a medium amount or or certain verticals, where its a smaller number of customers, placing very big orders, we were happy to do either one.
Mike If you want add anything.
No I think that covers it Rob.
Mark you had a couple of other sub questions. You said you wanted to.
Speaker 6: Mark, you had a couple other sub questions you said you wanted to tell me. Yeah, I was just going to pivot over to games and just talking a little bit. I know you said you probably provide more visibility, you know, as your progress is there. But obviously games, there's a lot going on. I thought I had an A activity in the space.
Yes, just pivot over to James and just talk a little bit I know you said, you probably provide more visibility.
As the year progresses, there, but obviously games.
There's a lot going on a lot of M&A activity in the space.
Speaker 6: Yeah, any kind of give us in terms of this general direction, in terms of focusing on doing more mobile, more social, any other different shape yourself, and a tough, you know, the crowded market.
Yes.
You can kind of give us in terms of just general direction.
In terms of.
Our focus.
More mobile more social.
Yes.
Yourself.
A crowded market.
Speaker 3: Yeah, the dominant focus is mobile for sure, so that's not a change. And between free-to-play and premium, I think we've come to feel, as Simanet has come to feel, that there is leverage and synergy between being in both segments. So we have some products.
Yes, the dominant focus is mobile for sure. So that's not that's not a change.
And between free to play in premium I think we've come to feel assuming that has come to feel that there is leverage and synergy between being in both segments. So we have some.
Products.
Speaker 3: on the premium side, which is where we came from, the community would be very popular and get lots of downloads and can operate as kind of a funnel. You monetize the free-to-play products much higher.
On the premium side, which where he came from the continued to be very popular and get lots of downloads and can operate as kind of a.
Our funnel you monetize the free to play products much higher.
Our.
Speaker 3: three biggest grossing games are all free-to-play games, which is typical. So I'd say we're gonna probably, over time, make most of the...
Three biggest question games are all free to play games, which is typical.
And so I'd say, we're going to probably over time make most of the.
Speaker 3: You know, most of the dollar growth will come from the free to play business. That was up until we hit the air pocket in 2021. That was our fast-sugaring part of our games business. And I think Simmonette is highly committed to reintegrate in that growth. In terms of how she's doing it, I think she's of a mind that I share this view that it's better for us to put points on the board and then talk about how we did it in detail rather than...
<unk>.
Most of the dollar growth will come from the free to play business.
It was up until we hit the air pocket in in 2021 that was our fastest growing part of our games business and I think assuming that is highly committed to reinvigorating that growth in terms of how she is doing it I think she's a reminded I share. This view that it's better for us to put points on the board and then talk about how we did it in detail rather than.
Speaker 3: be sort of predictive of which of the issues is going to work. But I will say that
B.
Sort of predictive of which of that issue is going to work, but I will say that.
I've been very very pleased with the rigor that she was approaching things in.
Speaker 3: I've been very, very pleased with the rigor that she's approaching things in. She's got a lot of experience and a broad set of the disciplines in games. I knew she'd be very strong and...
I mean, she has got a lot of experience and a broad set of disciplines in game. So.
And you should be very strong in.
Modernization type.
Speaker 3: Modernization type ideas because she comes from that world, but she also has the background in actually in finance and it turns out a lot of these businesses, you have to really understand the metrics in an incredibly rigid, rigorous way because these businesses are almost like many economies.
Type ideas because she comes from that world, but she also has a background in actually in finance and it turns out a lot of these businesses you have to really understand the metrics and incredibly Richard rigorous way because these businesses are almost like many economies, where you've got a measure of the.
Speaker 3: where you've got a measure of the revenue per daily user, you've got to measure the engagement, you've got to look at the cost of acquisition across various cohorts and various geographies, because it's not just the difference between the Android platform and the iOS platform that they monetize somewhat differently, but also the highly variable differences in geographies and even cohorts within geographies. So it's a super interesting, but also economically and financially complicated business. And then obviously you've got to make games that are fun. So at the end of the day, consumers are voting in record numbers with their pocketbooks.
The revenue per daily user you got to measure the engagement you have got to look at the cost of acquisition across various cohorts in various geographies because it's not just the difference between the Android platform and the iOS platform as they monetize somewhat differently, but also the highly variable differences in geographies and even cohorts within geographies. So it's.
A super interesting, but also economically or financially complicated business and then obviously you got to make games that are fun.
At the end of the day and our consumers are voting in record numbers with their pocket books in these in these categories Youre right that theres been a lot of inorganic activity M&A activity out there.
Speaker 3: in these categories.
Speaker 3: You're right that there's been a lot of inorganic activity, M&A activity out there. And that's certainly, we think that's positive.
And Thats, certainly we think thats positive because it means that there is.
All lines of the food chain there is interest.
All the way from Microsoft buying or trying to buy <unk>.
Speaker 3: for $70 billion, whatever it is, down to acquisitions more at our range of the business. So we see a lot of interest in the business. We are believers in it. We've described it long-term, that we think it's a strategic asset, and it sort of stands alone as a strategic asset and with a leader like Simonette in there, as we revitalize it, there's a lot of ways we can go with it in terms of how we get shareholder value out of it. But the first thing's first, the primary focus is to revitalize the growth. And I'm guessing that investors will be excited to see that happen. I'm super impatient.
Division for $70 billion, whatever it is down to acquisitions more at our range of the business. So we see a lot of.
Interest in the business.
We are believers in it.
Described it long term that we think it's a strategic asset.
It's sort of stands alone as a strategic asset and like some of that in there as we revitalize it theres a lot of ways. We can go with it in terms of how we get shareholder value out of it but the first things first.
<unk> focus is to revitalize the growth.
Speaker 3: And I'm guessing that investors will be excited to see that happen. I'm super impatient about it, but also, you know, when making the tough decision to bring in a new leader, I want to give her an opportunity to really dig in and make progress before we start talking about everything that's going on in the ground.
And.
Im guessing that.
Investors will be excited to see that happen.
Super and patient.
About it but also we're making the tough decision to bring in a new leader when it give give her an opportunity too.
Really dig in and make progress before we start talking about everything.
Everything.
They are going on in the ground.
Speaker 6: Great, and last question, this philosophically, obviously got decent balance. She in terms of M&A, being a buyer of businesses, dogbent, both in their AR, maybe even a game.
Alright, and then last question just philosophically, obviously, you got a decent balance sheet in terms of M&A.
Being a buyer of businesses dog bed bug.
Maybe for the games.
Speaker 6: How do you think about your capital on your balance sheet? I know you guys are still in a cash consumption mode, but just maybe talk about, I guess the third thing I guess you could buy back stock is the enterprise value is pretty small, but maybe just think about maybe kind of opine on the thoughts about capital and deploying capital going forward.
How do you think about your capital on your balance sheet. I know you guys are still on a cash consumption mode, but just maybe talk about.
I guess from a third thing I guess, you did buy back stock as Bob says enterprise values is pretty small, but maybe just think about maybe kind of opine on the thoughts about capital and deploying capital going forward. Thanks.
Speaker 3: I don't know, my course dean you want to take a cut at that and then I'll give it some top of that. Sure.
Yeah.
Microsoft and you want to take a cut at that and then ill give it is on top of that.
Sure.
Yes.
Speaker 5: Yeah, so we ended the year with 27 million in cash. And like I said in my remarks, we are allocating that judiciously as we go into 2022. And we remain a focus of investment around our AI products and as Mike talked about, the investments in Safer and Contag.
Yes. So we ended the year with 2027 $7 million to $27 million in cash and like I said in my remarks, and we are allocating that judiciously as we go into 2022, and we remain a focus of investment around.
AI products and the as Mike talked about the investments in safer and context.
Speaker 4: Yeah, Mark, it's a little bit around that. So with our cash, we are pretty focused on making investments over the next year in the AI-based businesses. And then regarding acquisitions, we're always open to things. But the first priority is our AI-based business.
Yes, Mark just a little bit around that so with our cash we are pretty focused on making investments over the next year in the AI based businesses and then regarding acquisitions.
We're always open to things, but the first priority is our AI based businesses.
Yes, I don't know if I can add too much.
Speaker 3: Yeah, I don't know if I can add too much on top of that, Mark. I think it's fair to say that we see a very strong prospect for return based on investing, you know, in our growth initiatives. And, you know, we're going to make those investments.
On top of that market I think I think it's fair to say that.
We see.
Very strong prospects for return based on investing in our growth initiatives.
And we're going to make those.
Investments.
Speaker 3: I guess I would say, but our belief is that having great products, having people that are in position to sell them and putting the customer's hands, that those are investments that are have pretty good return on them. So when we pick the right people to build the products, the right people to sell and market the products, and pick the right products to make. And that's our job to make good choice on all three of those.
Carefully I guess I would say, but.
Our belief is that.
We're having great products, having people that are in position to sell them and put them in customers' hands that those are investments that ought to have pretty good return on them. So when we pick the right people to to build the products great people to sell and market the products and pick the right markets and products to make and that's our job to make a choice on all three of those.
I appreciate the color good luck. Thanks.
Thanks Mark.
Speaker 1: Ladies and gentlemen, we have reached the end of today's question and answer session. I would like to turn this call back over to Mr. Rob Glazer for closing remarks.
Ladies and gentlemen, we have reached the end of today's question and answer session I would like to turn this call back over to Mr. Rob Glaser for closing remarks.
Speaker 3: Thank you, operator. Well, I hope everybody is 2022 is off to a safe and healthy start. I am well and everyone in this table as well. I had my bat with COVID early in January and fully recovered from it. It was more than a sniffles and less than a debilitating thing. So hopefully those of you that have had to go through it have had similar experiences. Hope everyone stays well and healthy. Again, I want to thank everybody on our team, all of our stakeholders, the partners, etc. and customers for everything they have done to help during this most unusual couple of years. We remain optimistic about the future and our heads down trying to create value here and looking hard every day to make that possible. So thanks everyone. We will be talking to you soon.
Thank you operator.
I hope everybody is 2022 is off to a safe and healthy start.
Well everyone in this table as well.
I had my belt with Covid early in January and fully recovered from it.
More than more than a sniffles in less than a debilitating thing. So hopefully those of you that have had to go through it have had similar experiences I hope everyone stays well and healthy again want to thank everybody on our team all of our stakeholders.
Partners et cetera, and customers for everything they've done to help.
During this most unusual couple of years, we remain optimistic about the future and over our heads down trying to create value here and working hard everyday to make that possible. So thanks, everyone. We'll be talking to you soon.
This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation and enjoy the rest of your day.
Speaker 1: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Enjoy the rest of your day.
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