Q1 2022 Progress Software Corp Earnings Call
Welcome to the progress Software Corporation Q1, 2022 earnings call. My name is Daryl and I will be your operator for today's call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session. During the question and answer session. If you have a question. Please press Star then one on your Touchtone phone.
I will now turn the call over to Mike <unk>, Mike you may begin.
Okay. Thank you Darryl good afternoon, everyone and thanks for joining us for progress Software's first quarter fiscal 2022 financial results conference call with US today is Yogesh Gupta, President and Chief Executive Officer, and Anthony Folger, Our Chief Financial Officer.
Before we get started I'd like to remind you that during this call we will discuss our future financial and operating performance corporate strategies product plans cost initiatives or acquisition of camp the impact of Covid. The COVID-19 pandemic on our business and other information that might be considered forward looking this forward looking information represents progress software's outlook and guidance only.
As of today and are subject to risks and uncertainties for a description of the risk factors that may affect our results. Please refer to our recent SEC filings in particular, the section captioned risk factors in our most recent Form 10-K .
Progress software assumes no obligation to update the forward looking statements included in this call whether a result of new developments or otherwise. Additionally on this call all the financial figures. We discuss are non-GAAP measures unless otherwise indicated you can find a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP numbers in our <unk>.
Financial results press release, which was issued after the market closed today and is also available on our website. This.
This document contains the full details of our financial results for the fiscal first quarter of 2022, and we recommend that you reference it for specific details.
We also have prepared a presentation that contains supplemental data for our first quarter.
22, 2022 results, providing highlights and additional financial metrics. Both the earnings release and this presentation are available in the Investor Relations section of our website at investors start progress Dot com.
Today's call will be recorded in its entirety, and then will be available via replay on the Investor Relations section of our website.
And so with that Yogesh I will now turn it over to you.
Thank you Mike.
Good afternoon, everyone and thank you all for joining us.
I'm pleased to be with you today to discuss <unk> first quarter fiscal 2022 earnings.
We're extremely happy with our results, which continue to demonstrate the value creating power of our total growth strategy.
We have assembled an impressive product portfolio to develop deploy and manage high impact applications.
Help accelerate the digital transformation efforts of organization.
We started off fiscal 2022, continuing the robust momentum from FY, 'twenty, one which was our best year ever.
We experienced strong demand for our products across the board.
And we had outstanding execution across all regions.
As you will see from our increased guidance, we expect the positive momentum from last year to continue in fiscal 2022.
In fact, excluding the impact of the Russia embargo and the FX headwinds are.
Our increase in revenue guidance is greater than the beat and a first quarter.
More details from Anthony in his remarks.
We are now four months into the integration of cap.
Which continues to be on track and the business is performing very well.
We remain confident about the synergies, we expect to achieve and the resulting shareholder value. This acquisition will create.
Before I get into the details of the quarter I think it's important to take a moment to talk about the situation in Ukraine.
We are truly horrified by the humanitarian crisis caused by the Russian invasion.
Thankfully, we have no employees in harms way in the region.
Our hearts and best wishes of the deferred.
Some families of our employees, particularly those in Bulgaria, and the Czech Republic and.
And we hope for a quick and peaceful end to the suffering of the people of Ukraine.
Many of our employees around the world are directly helping with the refugee crisis in many ways.
I couldn't be more proud of our progress team members for the speed and generosity of their response.
And as a company.
We recently pledged $100000.
World Health organization emergency appeal for UK.
From a business perspective, probably stopped doing business in Russia, and Belarus in accordance with the U S government sanctions.
And the impact is not material to our overall results for our longer term outlook.
Turning back to our first quarter results.
As you probably have seen already from our press release.
We again beat the top and bottom line expectations.
Revenue of $147 $5 million exceeded our guidance of $139 million to $142 million.
Earnings per share were equally strong at 97% versus guidance of 83 to 85.
Annual recurring revenue and net dollar retention rate improved once more with.
With E on are up over 12% year over year to $479 million and our net dollar retention rate was again over 100%.
The strength, we saw in the first quarter was exhibited across products and geographies.
One by one.
The impact of the first full quarter of revenue from camp.
Ooh sustained demand from the strong economy and fully funded budget.
And tweak the ongoing trends toward a digital transformation as companies and workers adapt to the new post Covid paradigm.
Hope image. Once again proved itself is the mainstay of our product revenues, while virtually all of the products in particular data direct slow months, Portugal, a file transfer and Dev tools products contributed to the outperformance.
In all openness ISP partner business, we saw several large deals around the world from a longtime partners QAD and North America coin in EMEA and Revolution in Asia Pacific.
Our desktop business continues to do well with increasing customer comps strong retention rates and increasing average deal sizes as customers deploy these products more broadly within their organizations.
They are often desktop offs remain a high priority among customers as they automate the deployment and management of cloud and on Prem infrastructures.
Our chef products continue to be the industry, leading choice to do so.
What's the bold and our most recent additions from.
The flow on and loadmaster offerings for them.
He sought after step set a full stack of visibility products.
That help our customers to deliver high quality application Expedia.
We are very pleased with the way these products have added robust capabilities to our offerings and further our goals as we continue to be the trusted provider of the best products to develop deploy and manage business application.
We achieved strong operating margins in the first quarter banks against the good expense control that temporary dampening effect of Pharmacon on travel and return to office at the very end of the year.
And the timely and seamless integration of cap.
We expect that probably budget.
Other expenses will not sustain the artificially favorable levels, we saw over the last two years.
We are going to start seeing our customers partners and especially our employees face to face in the coming months.
Closer to home recent inflationary pressures present, some new but so far manageable challenges.
The biggest challenge all companies are seeing is employee recruitment and retention across all geographies.
To date, the inflationary impact has been manageable and.
And while we anticipate seeing more.
In the coming months.
Prepared to adapt which includes the potential to raise prices on select products.
We expect strong margins to continue to be one of our hallmarks.
Turning now to our total growth strategy and our outlook for M&A.
M&A is another area where.
The spike in inflation and recent pullback in the capital market is an advantage.
We have mentioned in the past that rising interest rates could put progress in a more competitive position in the market for deals.
Other players are less likely to use leverages heavily.
In a higher interest environment.
We're seeing some signs of a more promising M&A environment.
Infrastructure software companies in our target zone.
Seek alternatives to public market exit.
Or private funding strategies.
At the same time potential competitors, who formerly were much more aggressive when money was cheaper are becoming more cautious.
As a result, we expect our disciplined approach to bear more fruit in the future.
Our radar scope remains dotted with many possible targets and we are working daily.
The vet and increasing number of quality acquisition candidates.
Probably assuming well capitalized due to our strong and predictable cash flows is sturdy balance sheet and ample ability to finance possible transactions.
As we announced in January we refinanced our existing credit facilities at a very favorable rate with.
With over half of our current debt.
Is fixed at 1%.
Our disciplined model of buying the right kinds of companies at the right price and the right multiple has served us well so far.
We believe that doing smart accretive acquisitions has proven to be the best way to deploy our capital to create shareholder value.
So no matter how much the market for deals changes one way or the other we have no plans to deviate from our strict M&A criteria.
We also see market pullbacks as an opportunity to buy back stock as we did in our first fiscal quarter.
All in all I'm once again very proud of our results and grateful to the whole progress team for another outstanding performance.
We remain very positive about our outlook, even as we carefully watch the global events.
As always we thank our customers and investors.
For their continued loyalty.
And I personally want to thank the whole progress team for their commitment and efforts.
I will now turn it over to Anthony to provide more detail on our results and guidance.
<unk>.
Thanks Yogesh.
Good afternoon, everyone and thanks for joining our call.
As Yogesh mentioned, we're very pleased with our Q1 results, which again exceeded the high end of our guidance range on revenue and earnings per share.
We're also very pleased with our progress integrating Kim.
Which delivered results in line with our expectations in the first full quarter since the acquisition closed.
Turning to the numbers.
Our revenue for the quarter of 147 5 million was well above the high end of the guidance range. We provided back in January and represents 12% growth on a year over year basis.
The better than expected performance in the quarter was driven by multiple products, including open of cortical bone grafts.
Consistent with our growth in revenue, we also saw a growth in alcohol.
Closed the first quarter $479 million in Iraq.
Representing 12% growth on a year over year basis.
Being a 5% growth on a pro forma year over year.
Year basis.
To be clear the pro forma results.
In both periods.
Pension to our firm.
Our net retention rates.
Any trends in the first quarter once again.
Uh huh.
Before moving on.
I'd like to take a moment to highlight.
We report a RR and constant city using our company here.
Exchange rates.
Those rates to all presented.
As a result of <unk>.
It's too early.
<unk> budgeted rates.
These are reported.
He has changed slightly.
The changes in material.
It doesn't alter the trend.
Rose.
For the net retention rates that we've been reporting over the past several quarters.
To illustrate this point we've included a slide in the supplemental presentation filed with our press release.
Turning now to expenses.
Our total costs and operating expenses for the quarter were $88 8 million up 18% compared to the prior year and.
And right in line with our expectations.
The year over year increase was driven by the acquisition of Kent into.
And to a lesser extent, an expected increase in compensation costs across the rest of our business.
Operating income was $58 $7 million up $2 million compared to the prior year quarter.
And our operating margin was 40% compared to 43% in the first quarter of 2021.
On the bottom line earnings per share of 97 for the quarter represents growth of <unk> year over year, and it's 12 cents above the high end of our guidance range.
This over performance relative to our bottom line expectations.
Was driven by our strong top line performance.
Coupled with good cost management across the business, including Canada.
Where our integration is running right on plan.
Our outlook for the camp integration is unchanged and we expect to recognize all synergies by the end of this fiscal year.
Moving on now to a few balance sheet and cash flow metrics.
We ended the quarter with cash cash equivalents, and short term investments of $173 million and debt of $633 million or.
Our net debt position of $460 million.
I'd like to mention that during the first quarter, we amended our credit facility to expand liquidity lower costs and provides greater flexibility to grow as we execute our total growth strategy.
The amended facility provides an aggregate amount of $575 million in capital.
Including $275 million in senior secured term loans.
And an untapped $300 million revolving line of credit.
This new credit facility replaces our 2019 facility.
And will mature on January 25th 2027 subject to certain conditions.
DSO for the quarter was 52 days, an improvement of eight days when compared to the fourth quarter of 2021.
And an improvement of one day when compared to the first quarter of 2021.
Adjusted free cash flow was $45 million for the quarter.
A decrease of $2 million compared to the prior year quarter.
This decrease in free cash flow was attributable to bonus and commission payments made to our employees in the first quarter of 2022.
But were approximately $10 million higher than bonus and commission payments made in the prior year quarter.
During the first quarter, we repurchased 551000 shares of progress stock.
At a total cost of $25 million.
And at the end of the quarter, we had $130 million remaining under our current share repurchase authorization.
I'd also like to mention that in the first quarter, we adopted ASU 2020 that show six the new convertible debt accounting standard using the modified retrospective method.
On our balance sheet, the new standard simplifies the presentation of our convertible notes by increasing their carrying value to be equal to the principal value less any unamortized debt issuance costs.
In our income statement, the new standard will have the effect of reducing our GAAP net interest expense.
But we will have no impact on our reported non-GAAP net interest expense net income or cash flow from operations.
Finally, I'd like to point out that we recently classified land and building assets totaling $15 $3 million as assets held for sale in our consolidated balance sheet.
This classification reflects an ex an active program to.
To sell corporate office space in Bedford, Massachusetts, which is part of a broader initiatives to consolidate office space and provide a more flexible work environment for our employees.
Supporting our mix of remote and in office work.
We expect the sale of our corporate offices to be complete in the first half of 2022 and expect net proceeds to exceed the carrying value of the assets held for sale on our balance sheet.
Okay, now I would like to turn to our outlook for Q2 and the full year 2022.
For the second quarter of 2022, we expect revenue between 145, and 148 million and earnings per share of between 94 and 96.
When considering our outlook for the full year, it's important to note that we continue to see strength in the demand environment for our solutions.
As a result, we are increasing our full year outlook on almost every metric and.
And we expect revenue between 609 and $617 million.
And that's an increase of $3 million from the midpoint of our prior guidance.
I'd like to highlight the fact that this $3 million increase to our revenue guidance includes the negative impact of movements in foreign exchange rates.
And.
The removal of previously forecasted business activity in Russia.
Together totaled approximately $4 million.
We expect an operating margin of between 39% and 40%.
An increase of 50 basis points from our prior guidance.
Adjusted free cash flow between 185, and $190 million consistent with our prior guidance.
And earnings per share between $4.01 and $4.09 an increase of five from the midpoint of our prior guidance.
Our annual EPS estimate.
<unk> tax rate of 20%.
Proximately 44, and a half million shares outstanding.
And the impact of $50 million of share repurchases, we are targeting to complete by the end of 2022.
And Thats, a total of 50 million not an incremental $50 million.
In closing, we're truly excited to deliver strong financial results across the board in the first quarter.
A continuation of the trend that we saw for much of 2021.
The integration of campus tracking to plan.
And we believe we're very well positioned to deliver strong results for the remainder of 2022.
With that I'd like to open the call for Q&A.
If anyone has a question you can press Star then one on your Touchtone phone. Once again, if you have a question Star then one.
Our first question comes from a tie Kidron from Oppenheimer go ahead with your question.
Thanks, nice quarter guys.
I guess I wanted to Yogesh first perhaps touch on camp, So nice to see the progress or there is kind of moving on track can you elaborate how much of the.
Synergies from camp are at this point more top line driven than Bottomline.
You've kind of you've all read you reached your 40% kind of margin targets. So I'm just kind of wondering if theres more to squeeze your camp or.
So at this point, it's more top line and if so maybe you can talk about progress you've made so far in.
Cross selling to existing customers or upselling your any of your existing solutions into camp customers.
Thanks and.
Let me share sort of the way we've looked at any acquisition, including camp. When we did the acquisition. So our acquisition model that contemplates shareholder value creation.
It does not.
Taking into account potential cross sell opportunities we are intentionally.
Conservative about that.
And so when we talk about synergies or synergies on plan, we're primarily talking about expenses.
We expect to take place.
12 months from the time of acquisition to fully realize the expense synergies.
That said I think.
A significant amount of those synergies are.
Well baked in and taken care off as we exited Q1 right. So if you noticed it was only one month before the.
Before the end of the year that we had our.
But when do you actually did the <unk> acquisition. So we only get one month. So it took us in the first quarter.
With significant media during which we will continue to get the expense synergies Anthony did I Miss something.
No no I think that's right Yogesh I think we're I think we've made very good progress on the integration and capturing synergies. There's there's always more work to do from sort of a systems and process standpoint.
But as you mentioned, we're more on track I think we feel pretty good.
About our ability to get this completed.
Certainly within the 12 month timeframe, we had mentioned previously.
Okay, maybe as a follow up.
I guess, you've talked about how well Russia is not a material part of your business. That's good to hear but maybe you could talk about Europe as a whole what percent of revenue does it account for and.
They are already data points that show significant.
Deceleration in macroeconomic activity in Germany, and that's starting to kind of move into other adjacent countries. So I guess the question is.
What are you seeing from a pipeline from our renewal rates specifically in that region are there any signs of change in behavior and customers that are based in Europe .
So you're probably right now we feel good about the way performances.
Europe , we continue to see.
Solid performance literally we are not seeing the potential impact that others might be seeing I can't speak for others.
Europe performed really well in Q1.
And the European business leaders and our folks in Europe are.
And about the rest of the year as well.
Our business maybe.
Maybe somewhat different I don't know whether that's.
What we are saying is applicable to everybody else.
Anthony do you know what percentage of.
Our business I noticed in the upper Thirty's, but I don't know the exact percentage of Europe business.
Yeah Yogesh.
I think that's right.
As we look at say the full year.
Of 2022.
In terms of a percentage.
Sure.
Bear with me, but yeah, I think we're about 34% so.
Third or a little bit more than a third is is based in EMEA.
And to your point Yogesh the majority of that is maintenance.
So theres big maintenance base over there, there's a lot of subscription renewals coming in from that region as well and so I think we tend to see.
Reasonable stability there.
Maybe less of a dependence on on net new customer acquisition that maybe compared to some other folks.
Got it and maybe last one for me.
You talked about your intention to raise prices just making sure Anthony but nothing of the guide includes the debt, but can you be a little bit more specific on timing and magnitude and it is just across the portfolio.
Or specific products or specific regions any any color on that.
So I can start Anthony.
Right.
Yeah, No I was just going to say.
I think it's.
The first point is theres nothing baked into our outlook that contemplates increase.
And prices.
<unk>.
The way I would characterize our perspective on this.
We've got to look region by region product by product.
And even channel by channel in some cases and figure out what's appropriate.
There may be some instances where.
There are contracts up for renewal, whether their maintenance or subscription and perhaps price increase is warranted.
We're evaluating those opportunities.
There are other parts of our business where.
Perhaps the best way to achieve an increase in price.
Is to reduce discounting and we're evaluating those opportunities.
But I think because we've got such a broad product portfolio and.
Different routes to market that we leverage.
It's not.
You know sort of that are.
That simple approach, where we can press a button.
Driving a 5% price increase across the board for our entire installed base I think we're going to have to be we'll be selective we'll do we'll look at price increases where it's appropriate and I think we're going to have to be thoughtful as to region channel and product type.
I appreciate it thanks.
Okay.
And our next question comes from pendulum Bora from J P. Morgan go ahead.
Oh, Great Hey, guys. Thank you for taking our questions and congrats on the quarter I wanted to talk about open it seems like it was.
Performer in the quarter could you maybe update us on what is the open edge mix at this point in time and what's what's driving the outperformance.
Is maintenance renewals ticking higher are you seeing this.
<unk>.
The secondary video as well as some of your.
<unk> partners doing well it seems like.
Yeah. So pendulum thank you.
The biggest driver for the <unk>.
Open edge business is and.
Has always been the ISP business. So he taught ISP partners.
Are the lion's share of that business.
And.
With them.
We have these revenue share models.
Where we get a piece of their business and over time.
They have continued to do well.
They have modernize their applications on top of black on top of our open edge platform.
They have.
Enable their products and actually also cloud offerings folks like QAD due.
And so as that as their business performs better.
We get a piece of that business as well.
So when you look at.
Some of the examples I gave.
In my prepared remarks, QAD coins at evolution et cetera.
These folks are all seen.
No.
Interesting increasing opportunities in the market that businesses are doing well.
And as a result of that we are seeing increasing royalties from them. So so that's the primary driver was the open edge business basically.
Got it.
I understand the mix.
Yes, I was just going to add to that Yogesh I think.
Thinking about the business for the full year 2022 pendulum.
Open edge is right around 40% of our total business.
And then that as you might expect has come down over the past several years.
As we have seen a little bit of growth in other product lines and we've acquired a bunch.
The mix really has come down there, but it's.
The business Nonetheless is very stable.
But as a percentage of the whole it's around 40%.
Got it very helpful and last question for me.
I think June camp acquisition, you had highlighted an aspect of kind of leveraging <unk> go to market motion I think you had you.
You had said they had kind of a two tier sales motion than you were.
Looking to kind of expand that to other parts of progress progressive portfolio.
What have you learned so far it's been six seven months have you started rolling that out towards some other parts of the business yet.
And so you know.
Pendulum, we spent the first.
Q1, primarily making sure that things were on track with the business.
<unk> business itself and making sure that we got our cost synergies in place and so on we have begun to see what products. We can actually placed through the <unk> channel.
But I think we're early pendulum to speak to it at this point.
So I would not.
Conclude anything meaningful at this point about us leveraging that channel for other products. There is definitely that opportunity, but we have not.
Made significant progress in that area at this point.
Understood.
Back in the queue. Thank you.
Thanks Linda.
Our next question comes from Tyler Radke from Citi Go ahead Tyler.
Yes, thanks for taking the question I wanted to just clarify your comments on some of the challenges you are seeing.
On the inflation side is that just kind of the general observation on the macro environment or is this manifesting itself.
There is specific headwinds either.
And customer negotiations or on certainly cost or payments.
You are having to make just helps.
Expand on that a little bit thank you.
Yes, I'll start and Anthony please please add to it as well.
Tyler the domain.
From a customer perspective, absolutely nothing in fact.
As we said I think there might be some opportunities for us because of the inflationary environment to potentially even race.
Prices in certain cases with certain customers, depending on timing of contract renewals and so on.
So that's not where we would see.
The impact for us the challenge.
Is this from the combination of.
Employees.
The retention the way it is.
Large do thing right now for software companies all companies of any stripe to be honest.
So wage pressures I think I think as the primary.
The challenge that we are observing and we are watching carefully we however to date.
Feel very good about where we are and.
And I don't think that this is in any way shape or form.
Going to be something that is a manageable and.
In fact, I think that so far we have a good handle on it and we continue to be vigilant around it.
So, but we wanted to make sure that.
We understood that this is an area.
That is something that we are watching closely.
Anthony did you want to add something.
No I would just say yogesh.
I don't think we've seen.
Too heavy and impact in our Q1 numbers from inflation.
We have baked incremental impact into the rest of the year.
And even with that to Yogesh just point, we feel as though it's a it's a manageable problem right now.
But certainly one we're keeping an eye on.
Great.
Maybe just a follow up to that I mean, obviously the margin performance in the quarter.
Look.
Pretty pretty strong is there I guess philosophically.
<unk> pressure tracks.
How do your expectations are you.
Are you kind of offsetting that with other areas of the budget and then I just had one follow up on the M&A strategy.
Yes short answer is yes, I mean, we're.
Yogesh mentioned in his remarks earlier that.
Maintaining.
Our best in class operating margins really is a hallmark for us.
We're going to look to continue to do that.
Bob.
I think we will be.
Pretty thoughtful about trying to manage expenses across the business. So that we can.
Do the right things for our employees retain our employees and make sure that we're.
We're competitive from a market perspective so.
That is absolutely.
In our sights for sure.
Okay, great and just on the M&A environment.
You talked about the.
As a result of the devaluation.
Coming down that making it more favorable.
How should we think about that in terms of.
Your M&A strategy, whether it.
The pace and whats youre pursuing these fields or are the volume.
Would you be opportunistic and maybe look to accelerate the pace of.
M&A in the near term to take advantage of the improved environment.
Again, the short answer is yes Tyler.
The longer answer is of course.
If opportunities come along when they come along and we've got to get the deals.
Deals happening and then making sure we do the deals, but but yes, and I think that we have the ability to do that we have the ability from an operational perspective and of course, we have the ability to come at it from a financial perspective, but I think to me.
Always looked at this as what can be operationally.
Absorb and run well in and integrate well once we do the actual transaction and so I.
We absolutely are looking at it.
Accelerate the pace of M&A.
Given given the way the market.
Thanks.
Thanks Darrin next.
Okay.
Our next question comes from Anja Soderstrom from Sidoti go ahead.
Hi, Thank you for taking my question. So a lot of my questions have been asked and answered already but can you just speak to.
The organic growth you see it seems like that has picked up a little bit in the past quarters. How did you see that in this quarter and how do you expect that to play out in the coming quarters.
So on yeah. Thank you it has picked up and it just continues to do well.
As you can see.
This quarter really be.
<unk> outperformance really was on the organic side the vast majority of the outperformance was on the organic side.
So so we feel really good about what is happening with our organic business.
<unk> is up.
Apples to apples three 5% year over year.
Months, so that gives you a feel for what.
What is going on in the business. So we feel really good about this we feel really good that we have a <unk>.
40% operating margin business with an organic growth.
At our site that is looking like.
Three 5%.
Twice now in a row and steadily picked up over the last couple of years. So.
We continue to feel confident in.
<unk>.
We think we have a strong business with good solid in the market.
Thank you and I just wanted to also ask you you said you might then.
Inflationary pressures with price increases history.
The price increases.
So that's why I'm, you know interestingly enough right. There's a part of our business that is royalty based on that I was mentioning that is it for an earlier question that how that thing as well.
When you look at the royalty based businesses. There is really no opportunity to change prices because it's a percentage of their revenue right. So that doesn't really change unless we can put more products into that same.
Particular, ISC partner, so, but with everybody else.
Historically, we have not raised prices in quite some time.
We've actually been good about that from the perspective of our customers.
So I think that if we were to find the right products and the right opportunities and raise some prices I don't think we would get pushed back.
And then any more meaningful way.
The unusual so so we are looking at that.
And as Anthony pointed out.
We will have to be selective both in terms of opportunities as well as geographies and products and channels. So so this is not a broad brush across the board, let's raise prices by X percent.
Okay. Thank you that was all for me.
Thank you Anna.
We have no more questions at this time I'll turn it back to Yogesh for closing comments.
Well.
Thank you everyone for joining our call and.
We look forward to speaking with all of you again, thank you.
And thank you ladies and gentlemen. This concludes today's conference. Thank you for your participation you may all disconnect.
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Yes.
Sure.
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