Q1 2022 Enova International Inc Earnings Call
First quarter highlighted by stronger than expected demand.
Originations were particularly strong in our SMB and near Prime businesses.
We also continue to see good credit quality across all of our businesses.
Well below pre COVID-19 levels.
Net charge offs of seven 6% in the first quarter less than half of those in the first quarter of both 2020 and 2019.
Given these dynamics, we meaningfully leaned into the demand with our marketing efforts.
Marketing spend was 24% of revenue in Q1.
While this is higher than historic levels, a portion of the increase is due to our switch to fair value accounting were no marketing costs are deferred to future periods, resulting in higher marketing costs as a percentage of revenue in periods of strong growth.
He will provide a bit more detail on this impact, which we've discussed in prior quarters.
But more importantly at these current levels of spend are expected unit economics on a recent vintages remained well above our targets.
But as always we will keep a close eye on these metrics to ensure we produce sustainable and profitable growth over the long term.
As a result of the strong demand in our successful marketing total company originations for the first quarter totaled just over $1 billion nearly flat sequentially from a very strong Q4 and more than double originations during the first quarter of 2021, while our portfolio grew 71% to two.
$2 billion in the quarter.
Originations from new customers remained strong at 44% of total originations showing our ability to continue to take share across our non prime lending businesses.
As evidenced by the strong loan growth in Q1 combined with the continued strong credit metrics across our portfolio.
Our customer base remains resilient, despite some of the turbulence in the macroeconomic environment, including concerns over inflation.
A large contributor to the stability of our customer is healthy wage and job growth.
Americans are experiencing the highest level of job security on record by many measures.
New claims for unemployment benefits are trading at their lowest level since 1968.
Sign of how few layoffs are happening in the tightest labor market in half a century.
In addition, wages have grown almost 6% over the past year are faster than a normal 2% annual growth over the last couple of decades.
Low unemployment plus inflation generally mean consumers may need loans for additional capital to manage through unexpected spikes in expenses, but.
Earning money to pay back those loans.
And overall, our customers appear to be managing well through the current rise in inflation.
A recent analysis, we performed on our customers' electronic.
Statements data has shown that while expenditures on a typical basket of goods has increased.
There was enough of a cushion and discretionary spending to absorb the higher cost of things like groceries and gas.
Therefore, we do not see much risk to portfolio health from inflation.
This is further evidence of a point that we've made many times in the past.
Non prime consumers and small businesses are very sophisticated in managing their finances and in many cases better than prime customers.
We're also seeing strength in small businesses, who have been beneficiaries of the economy reopening as the pandemic waned.
Credit performance speaks for itself in that portfolio and we continue to monitor real time cash flows of our SMB customers as well as external data to monitor industries in order to adjust our pricing and exposure against the current trends in the macro environment.
And a final point on inflation.
Given the spreads and our average APR over our cost of capital small increases in the fed funds rate will not have a meaningful impact on our profitability.
As Steve will discuss in more detail, our strong performance and long term stability of our portfolio means we continue to be able to secure low cost financing as needed.
The result is that we actually expect our overall cost of funds this year could be meaningfully lower than prior years, even with the recent and expected rise in rates.
As you may recall.
First quarter seasonality typically results in a sequential revenue decrease from the fourth quarter driven by tax refunds.
However, as a result of the strong origination growth. This year revenue in the first quarter increased 49% year over year, and 6% sequentially to $386 million.
And benefiting from the strong credit performance.
<unk> solid bottom line returns as well with adjusted EBITDA of $106 million and adjusted EPS of $1 67.
Both up 4% from the fourth quarter.
As we've discussed in depth, our highly diversified portfolio provides us additional protection against changes in the macroeconomic environment.
Changes in regulation and changes in the competitive environment.
In the first quarter small business products represented 56% of our portfolio, while consumer accounted for 44%.
Within consumer line of credit products represented 28% of our consumer portfolio installment products accounted for 70% and short term loans represented less than 2%.
We continue to expect the mix between consumer and small business to fluctuate over time based on both macroeconomic factors and seasonality.
In summary, we are very encouraged by the momentum in the business.
Seeing the strong demand we witnessed in Q1 continue into the first part of this quarter.
And longer term, we are very confident that our highly flexible online only business model and well diversified portfolio will enable us to continue to capture market share.
In addition, we believe that our long track record of quickly adapting to changes in market conditions, and our nimble team will enable us to continue to effectively manage risk and growth.
Now I would like to turn the call over to Steve Cunningham, Our CFO , who will discuss our financial results and outlook in more detail and following steves remarks, we will be happy to answer any questions that you may have Steve.
Thank you David and good afternoon, everyone.
As David noted in his remarks, we delivered another solid quarter of top and bottom line financial performance.
Diversified product offerings machine learning powered credit risk management capabilities.
<unk> marketing.
<unk> us to meet stronger than expected consumer demand with attractive unit economics.
Turning to <unk> first quarter results total company revenue for the first quarter rose 6% sequentially.
And increased 49% from the first quarter of 2000 $21 million to $386 million.
Revenue was driven by the continued growth of total company combined loan and finance receivables balances.
Which on an amortized basis were $2 2 billion at the end of the first quarter.
11% sequentially and 71% higher than the first quarter of 2021.
As David noted total company originations for the first quarter totaled just over $1 billion nearly flat sequentially and more than double originations during the first quarter of 2021.
Originations from new customers remained strong totaling 44% of total originations as our marketing activities remain highly effective.
Small business revenue increased 15% sequentially and 75% from the first quarter of the prior year to $133 million.
Small business receivables on an amortized basis totaled $1 2 billion at March 31.
A 20% sequential increase and 74% higher than the end of the first quarter of 2021.
Small business originations increased to $659 million.
Up 14% sequentially and more than double the first quarter of 2021.
Revenue from our consumer businesses increased 2% sequentially and 37% from the first quarter of 2000 $21 million to $249 million.
Tumor receivables on an amortized basis ended the first quarter at $963 million.
Slightly from December 31.
69% higher than the first quarter of 2021.
As consumer originations more than doubled from the prior year quarter to $382 million.
Looking ahead, we expect total company revenue for the second quarter to be slightly higher sequentially.
The net revenue margin for the first quarter was 70% and was at the high end of our expected range as credit quality, which is the most significant driver of portfolio of fair value.
<unk> solid and in line with our expectation.
The change in fair value line item included two main components net charge offs.
And changes to the portfolio at fair value, resulting from updates to key valuation inputs, including future credit loss expectations prepayment assumptions and the discount rate.
Discuss both items in more detail.
First the total company ratio of net charge offs as a percentage of average combined loan and finance receivables for the first quarter.
Seven 6%.
Up from six 7% last quarter and up from four 2% in the first quarter of 2021, but still well below the pre pandemic rates of 16, 8% and 15, 4% during the first quarters of 2000 22019, respectively.
As we've noted in previous quarters with originations growing.
Less seasoned receivables comprise a larger proportion of our portfolio, causing total company credit metrics to trend toward more typical historical levels.
As new origination vintages track along their expected loss curves over time.
These expectations are key inputs into our unit economics framework.
It has allowed us to consistently deliver solid margins.
Strong returns on shareholder equity.
Even with nearly $3 billion in originations over the past three quarters credit metrics for both our small business and consumer portfolios.
Remained favorable comparable pre COVID-19 periods.
Payment performance continues to be in line or better than our expectation.
First quarter net charge off ratio for small business receivables was one 9%.
Some 80 basis points last quarter, but below the prior year ratio of two 6%.
And below pre pandemic periods as we continue to see strong payment performance across all of our small business products.
The consumer net charge off ratio for the first quarter increased to 14, 2% from 13, 3% last quarter and 6% in the prior year quarter.
With the growth in consumer receivables in recent quarters, especially from new customers. We expected this credit normalization in the consumer portfolio from unsustainably low levels.
The consumer net charge off ratio remains well below the pre pandemic rates of 18, 7% and 16, 6%.
That we reported for the first quarters of 2020 and 2019, respectively.
The fair value of the consolidated portfolio as a percentage of principal was 107% at March 31.
Up from 105% at the end of 2021.
The improvement in the fair value of the consolidated portfolio resulted mainly from improvement in our credit outlook, partially offset by an increase in discount rates.
As a percentage of total portfolio receivables past due 30 days or more was five 2% at March 31 down.
Down slightly from five 3% at the end of 2021 and.
And lower than the seven 6% ratio at the end of the first quarter a year ago.
In addition to future credit loss expectations every quarter, we also evaluate discount rates and other key valuation assumptions used in our fair value models.
As a result of this analysis for the first quarter, we increased the discount rates used in the fair value calculation.
50 basis points to incorporate observed market information.
To summarize the change in the fair value line item. This quarter is driven primarily by relatively low levels of net charge offs higher discount rates and credit metrics and modeling at the end of the first quarter continue to reflect a solid outlook for expected credit future credit performance.
Our rapidly growing portfolio.
Looking ahead, we expect the net revenue margin for the second quarter of 2022 to range between 63 and 68%.
A stable economy with more normalized credit and continued growth in originations the net revenue margin should range between 55 and 65%.
As less seasoned loans become an increasingly larger proportion of the portfolio.
Our future net revenue margin expectations in the degree and timing of future normalization in the ratio will depend upon the timing and mix of originations growth.
Now turning to expenses, our operating expenses this quarter reflect higher marketing costs with strong customer demand that drove stronger than expected originations.
As well as the continued scaling of our fixed costs.
Total operating expenses for the first quarter, including marketing for $168 million or <unk>, 44% of revenue.
<unk> to $108 million or 42% of revenue in the first quarter of 2021.
Marketing expenses totaled $93 million or 24% of revenue compared to $29 million or 11% of revenue in the first quarter of 2021.
Our level of marketing spend during the quarter reflects the effectiveness of our marketing programs to capture stronger than expected customer demand, especially from new customers with strong unit economics.
As a reminder, under fair value accounting, we recognized marketing expenses in the period. They are incurred deferring a portion and recognizing them over the life of the loan as we did prior to 2020.
As many in the industry still do.
Looking forward, we expect marketing expenses as a percentage of revenue to be approximately 20% next quarter.
Lightly higher during periods of higher seasonal demand later in the year, but will depend upon the growth in originations, especially from new customers.
Operations and technology expenses for the first quarter totaled $41 million or 11% of revenue compared to $36 million or 14% of revenue.
First quarter of 2021.
Given the significant variable component of this expense category sequential increases in <unk> costs should be expected in an environment, where originations and receivables are growing.
You should range between 10 and 12% of revenue.
General and administrative expenses for the first quarter totaled $35 million or 9% of revenue.
Impaired to $44 million or 17% of revenue in the first quarter of 2021.
Excluding a onetime reduction to personnel related costs G&A expenses would have totaled approximately 10% of revenue.
While there may be slight variations from quarter to quarter, we expect G&A expenses as a percentage of revenue to trend below 10% as we move through 2022 and as these expenses scale with growth.
Our stock based compensation expense was $5 $4 million in the first quarter, which compares to $5 $8 million in the first quarter 2021.
We expect normalized stock based compensation expense should approximate $5 $5 million per quarter going forward.
Our effective tax rate was 23% in the first quarter, which decreased from 27% for the first quarter of 2021.
The decrease resulted primarily from increased stock based compensation deductions.
While there may be slight variations from quarter to quarter, we expect our normalized effective tax rate to be in the mid to upper 20% range.
We recognized adjusted earnings a non-GAAP measure of $58 million or $1 67 per diluted share compared to $1 61 per diluted share last quarter and $2 20, particularly per diluted share in the first quarter of the prior year.
The trailing 12 month return on average shareholder equity using adjusted earnings was 24% during the quarter.
Compared to 45% a year ago.
We ended the first quarter with $246 million of cash and marketable securities, including $132 million in unrestricted cash.
And had an additional $404 million of available capacity on $1 2 billion of committed facilities.
Our debt balance at the end of the quarter includes $769 million outstanding under committed facilities.
During March we added $234 million of additional funding capacity.
All four of our existing consumer and small business securitization warehouse facilities.
The ability to increase the capacity in each of our existing committed facility.
Same attractive terms reflects the strength of our partnerships with our bank lenders as well as the solid credit performance of our portfolio.
Our cost of funds for the first quarter was five 9% versus eight 6% for the first quarter of 2021.
And at the end of the first quarter, our marginal cost of funds range from two 5% to four 5% depending on the facility utilized.
Demonstrating our confidence in the continued strength of our business relative to our current valuation during.
During the first quarter, we acquired approximately one 8 million shares at a cost of approximately $74 million.
At March 31, we had $72 million remaining under our $100 million share repurchase program.
Our solid balance sheet and ample liquidity gives us the flexibility to continue to deliver on our commitment to long term shareholder value through both share repurchases.
And investments in our business to drive meaningful sustainable and profitable growth.
To summarize our outlook with continued strong customer demand and meaningful growth in originations and receivables.
We expect the net revenue margin to range between 63% and 68% next quarter.
To normalize in the range of 55% to 65% over time.
In addition, we expect marketing expenses of approximately 20% of revenue next quarter and.
And to be slightly higher as a percentage of revenue during periods of higher seasonal demand later in the year.
We also anticipate continued scaling of our fixed costs with growth.
These expectations should lead to adjusted EBIT margins in the mid 20% range.
Adjusted EPS in 2022 should benefit from continued receivables growth solid EBIT margin, a lower portfolio cost of funds and a declining share count with quarterly year over year increases in adjusted EPS.
We expect it to resume in the second half of 2022.
The degree and timing of these expected trends at any normalization will depend upon the timing.
And mix of originations growth.
We remain confident that the demonstrated ability of our talented team to adapt to any changes in the operating environment by leveraging our resilient direct online only business model diversified product offerings.
<unk> machine learning powered credit credit risk management capabilities.
And our solid balance sheet.
Has us well positioned to continue to drive profitable growth, while also effectively managing risk.
And with that we'd be happy to take your questions.
Operator.
We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
Youre using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then two.
And at this time, we will pause move materially for the great question.
Okay.
We will come from David Scharf with JMP Securities. Please go ahead.
Hi, yes. Thanks.
Thank you for taking my questions.
Hey.
Kind of wondering.
I'll leave kind of credit and all the macro questions to others, which obviously remain very topical.
Wanted to ask you a little bit about competition, though and particularly small business.
Yes.
It looks like the small business platform, mostly on deck I mean, it's well over 50% of receivables now, but it's 34% of revenue obviously it.
Carries with it lower average yield so.
The trends in those yields obviously.
I have a pronounced impact on our on our revenue modeling can you just update us on what's going on competitively.
Particularly in the context of.
Maybe four or five years ago. It seemed like he couldnt turn on satellite radio without hearing.
1 million small business lending ads.
Recently seen on deck on TV more but if you can provide a little bit of context in sort of competition pricing market share outlook for that business that'd be helpful.
Yeah, sure David and I'm glad you heard the on deck ads, we've definitely been ramping them up hopefully with a little.
Bit more diligence.
Ambac was running add three or four years ago.
But yes, we definitely jumped back into kind of a kind of broader based advertising in that business and it's been working really well as you can see in the first quarter results. That's something we started in kind of late Q4.
And so that's been working well.
In particular.
Competition in that business and really in our consumer business as well, it's not something that changes quickly and these are big businesses that are complex require lots of funding.
Underwriting models that take years to develop and so just not much moves quickly on the competition side. So.
We are resolved for us we saw some changes kind of around the time of Covid.
First cabbage selling to American Express was a pretty big change.
Big player in the industry and are now focused below 36%.
And kind of time prime small business small businesses and then there are some companies exiting kind of during COVID-19 can make it through.
Kind of the first part of the Covid phase and so.
Providing some tailwind for us as well.
And as you look forward for new entrants that come in this space and make a splash as something that would take many many many years and really no signs of that occurring.
So we feel really good about our market positioning in this part of the space space.
Adding <unk> to our two existing small business brands, we are clearly the largest player.
You have kind of in the non prime small business lending space.
And as.
As we kind of can increase our advertising and our scope, we certainly expect that to continue.
Okay. So it sounds like we.
It shouldnt feel any pressure to.
A fire kind of APR assumptions on that product from Canada.
Low to mid <unk>, yes, we are not.
We are not feeling APR pressure in our small business products.
Great Great and one follow up.
Yeah.
It looks like notwithstanding.
Very strong originations.
Above trend marketing.
Both for the first quarter, you still manage to buyback almost 5% of the company.
I guess based on.
Just your sort of internal outlook for volumes for the remainder of the year just gauging.
And right now.
I mean would you anticipate kind of re upping the authorization.
Or do you kind of run into some funding.
[noise] bottlenecks as you start to see volumes grow even more.
So we do not see any funding bottlenecks at all as you saw during the quarter as you heard Steve mention.
We increased many.
Yes, many if not all of our facilities during the quarter the size of the facilities during the quarter, which is.
This is Greg even in a little bit of choppy markets, we had no problem whatsoever accessing.
Additional capital. So we are not feeling any funding constraints, we don't expect to feel any any funding constraints.
Okay.
Stocks sold off over $10 during the quarter and when we see something like that happen, we're going to continue to be opportunistic in terms of investing in it.
Got it great. Thank you very much.
And our next.
Question will come from Vincent <unk> with Stevens Stevens. Please go ahead.
Thanks, Good afternoon, thanks for taking my questions.
Just first question just kind of thinking about how.
The economics will be during kind of consumer credit normalization and then one quick question I've been getting from investors is.
The fair value Mark So I guess when.
As the consumer credit normalizes, and maybe also rising benchmark interest rates and.
Rising inflation I guess, how should we think about the fair value as a percentage of principal going forward is there kind of a right level or or maybe.
What a more normal level would be like.
Going forward. Thank you.
Hi, Vincent.
Steve.
So if you take a look at consumer I mean, we are seeing it normalize you can see the stats over the past few quarters and you can see how strong.
The fair value marks have hung in there.
Gets back to the way, we think about making marginal decision to ties in very well with the unit economics and the way, we think about driving returns for the company. So.
There may be some variations from quarter to quarter, depending on seasonality, but I think youll see.
The fair value marks settle in for consumer somewhere between 105 and 110.
On average for the most part when we're sort of at a steady state.
Growth.
Pattern that youre used to seeing sort of looking back overtime.
Okay. That's helpful. Thank you.
And then another question on securitization market. So I think you are.
Funding was really impressive this quarter, you were able to upsize everything and it really stands in contrast with.
Candidly some other fintech <unk> had trouble accessing the capital markets over the.
Past quarter. So maybe if you could talk about in more detail sort of what youre seeing in terms of the demand for your.
For for investors to fund your paper and contrast that with what Youre seeing maybe with the capital markets generally thank you.
Yes sure so.
We've followed if you just sort of follow back over time, we've been very focused on continuing to diversify.
Our liquidity stack using securitization and term markets.
And the revolver.
As well as occasionally senior notes. So we try to have that flexibility and we work very closely with our partners to make sure that we're not having to be in any one particular market at any one time.
Just given that they can be choppy at certain times, but we've had we can access today, we can access those markets. If we so choose to access access those markets, we're not having to do anything so that gives us the flexibility to.
Continue to manage liquidity and provide that flexibility to do buybacks as well as grow the business, but also be able to manage our costs along the way so.
We expect this to continue.
To focus on that and it's really a testament to how the portfolio is performing right without in the securitization markets without that type of performance.
We're not going to be able to do that so it really speaks to this to the strength and predictability of what we've been able to accomplish over time.
Yeah.
Okay, Great I appreciate it thank you.
Sure.
And our next question will come from John Hecht with Jefferies. Please go ahead.
Good afternoon. Good afternoon, guys. Thanks very much.
Yes.
Yes, so youre growing nicely in all of your segments.
Obviously this quarter you saw a little bit of increased growth relative to the other segments in small business.
Dave asked about.
Competition, I'm wondering kind of from the other side those where do you think youre gaining market share is there a certain geography or certain types of industry or certain types of product base that you are.
Sure.
Sure.
I guess more rapidly getting into the market or is it just full expansion at all sides of that category.
Yes, I think on the small business side a lot of it is awareness.
And that had been out of the market.
In terms of spending a lot on advertising for a while before we bought them just because of challenges in their business and then during Covid, obviously, we weren't spending a ton of ton of kind of broad based marketing.
While those aside and now that we.
You have kind of been more aggressive with the marketing spend I think just awareness around small business, though is that there are great online alternatives, where they can get fast easy access to capital to help grow their businesses and be successful is really resonating.
And so I think.
It's small businesses just accessing capital Morris I think the market's increasing right now small businesses have been.
Pretty strong appetite.
For growth, but also for kind of more traditional non bank.
<unk> small business lenders.
Kennedy the online.
Coach with kind of the speed and ease in the transparency is really appealing to businesses.
Okay. That's helpful and then.
Maybe if you could talk about.
I guess this is sort of tied to the credit part of the equation and just borrow borrower behavior I mean.
What our small businesses borrowing for now relative to where they were.
A few months ago and in consumer I mean, we're hearing consumer borrowing I guess.
The catalyst for borrowing maybe changing because of inflation and so forth Im wondering if youre able to identify that give.
Give us any thoughts on that.
Yeah. So I think on the small business side, it's really just for expansion as the economy continues to reopen some of these small businesses pulled back and really got hurt during COVID-19.
And now now that the economy is pretty wide open at the moment and consumers are back spending with them. They are still trying to they're still trying to ramp back up and so there is a lot of small business spending around that.
That's driving a need for capital.
On the consumer side.
It almost feels like it's back to pre Covid, there's temporary dislocations between their income and their expenses.
As I mentioned in my.
Prepared time today, we're not seeing a huge impact from inflation per se.
We can see we have banks payment data for a large percentage of our consumer consumer customers.
Yes, we can see additional spending on food food and gas as there has been some inflationary impact there.
Offset by a slight pull back on discretionary spending.
So kind of cash balances on the consumers are relatively steady.
Six months ago.
So the spending needs credit needs on the consumer side is again back to those historic historically.
Many many of the consumers are living paycheck to paycheck.
And when they have temporary named temporary dislocations between their income and their expenses.
Thats when they need to access credit so.
Yes, I would tend to think about it is we're pass code that we're past COVID-19 impacts on the consumer side and Thats looking much more like 2018 2019.
Yeah.
Great really appreciate that guys. Thanks.
Yes, sure no problem.
And once again, if you would like to ask your question. Please press Star then one.
And our next question will come from John Rowan with Janney. Please go ahead.
Hey, guys.
Okay.
Yes.
I'm going to ask different versions of what was already yes.
Is there what is the remaining buyback authorization if any.
Yeah, John it's about it's in the low seventies around $73 million.
Yes.
Okay.
And just to kind of go back to the question on credit.
So you're maintaining your guidance of 55% to 65% gross profit margin, but the fair value marks.
Chuck I guess.
Can see a better credit outlook.
With the guidance remaining unchanged I mean, there were just still within that range, but maybe on a different side of the range or.
Or are there potentially more fair value positive marks a comp, particularly on the consumer side, where you said that the fair value would settle in between 105 and 110 it looks like you're at 105 six for the quarter I'm, just trying to balance out what's driving that gross profit margin whether it's.
The credit or whether or not theres more fair value marks to comment.
So John I think there's a couple of things in there right. So the fair value marks really are most sensitive to our outlook for credit performance over time right. So.
If you go way back and look at when we originally adopt.
Adopted fair value.
On January 1st 2020, which we were a little bit more consumer oriented we are at around 107.
Okay.
Probably the the.
The last time, we've been in sort of a normal steady state environment. So that's that's kind of a way to think about what I said for consumer and it can vary depending on our growth trajectory. So the seasonal pattern in consumer can drive a little bit of variation in that range.
But if youre continuing to see charge offs that are in a in a consistent range and delinquencies that are in line with our expectations.
Fair value marks are going to be in those sort of in that general vicinity.
Same thing with with small business you should expect the same tactics most sensitive to our outlook and modeling for future credit performance. So as we're adding more.
And those loans continue to perform.
I'll get into a more steady state normalized environment will settle into sort of does normal.
Fair value ranges that you would expect.
At the same time on the net revenue margin, which I think you were also asking about.
<unk> talked about 55% to 65% when you get to sort of that steady state.
Growth pattern that we expect to get to over time.
The consumer side of that equation is probably somewhere in the 50% to 60%.
<unk> in the small business is probably somewhere in the low <unk> to low 70% range.
So I think that's how you should think about it but at the end of the day it's around.
The net revenue margin is going to be sensitive to charge offs in the current period, which can be impacted by seasonality and the growth pattern and fair value is going to be impacted similarly, but to a lesser extent and more driven by our outlook for credit.
Overtime.
Alright, thank you.
Yes.
And once again, if you would like to ask a question. Please press Star then one.
Yes.
And this will conclude our question and answer session I would like to turn the conference back over to David for any closing remarks.
Thanks, everybody for joining our call today, we look forward to talking to you again next quarter have a great evening.
Yes.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.
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Okay.
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Sure.
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