Q1 2022 Corsair Gaming Inc Earnings Call
[music].
Good afternoon.
Afternoon, and welcome to the Corsair gaming first quarter 2022 earnings conference call.
A reminder, today's call is being recorded and your participation implies consent to such recording.
At this time all participants are in a listen only mode.
A brief question and answer session will follow the formal presentation. If you would like to enter the question queue. Please press star one on your cell phone keypad.
If anyone should require operator assistance during the conference. Please press star zero on your cell phone keypad with that I would now like to turn the call over to Ronald Van Veen Corsairs, Vice President of Finance and Investor Relations. Thank you Sir please begin.
Thank you.
Good afternoon, everyone and thank you for joining us for <unk> financial results conference call for first quarter ending March 31 2022.
On the call today, we have our CEO and Paul and CFO , Mike Palmer.
Andy will review highlights from the first quarter and business environments. Michael will then review the financials.
And we will then have time for any questions.
Before we begin allow me to provide a disclaimer regarding forward looking statements this call, including the Q&A portion of the call May include forward looking statements related to the expected future results of our company and are therefore forward looking statements. Our actual results may differ materially from our projections due to a number of risks and uncertainties.
The risks and uncertainties that forward looking statements are subject to are described in our earnings release and other SEC filings.
Today's remarks will also include reference to non-GAAP financial measures additional information, including reconciliation between non-GAAP financial information to the GAAP financial information is provided in the press release, we issued after the market close today.
With that I'll now turn the call over to Andy.
Thank you Ronald and welcome everyone to our Q1 'twenty two earnings call.
While we faced headwinds in Q1 with inflation, the continued Russia, and Ukraine conflict and high freight costs, we continue to see positive underlying growth trends in the gaming hall by sector.
During Q1, GPU cards, which are the most expensive item in a gaming PC was still at a high premium roughly 850% of MSRP.
Even with this premium we saw gaming PC build activity slightly higher than pre pandemic and pre GPU shortage levels.
Our component segment grew by 6% in Q1, 'twenty two compared with Q1 'twenty. The lost Q1 before the pandemic and shelter at home.
The surge of activity that we saw during the shelter at home period.
Does not appear to have caused a large pull forward and builds more so and entrance of new game is building for the first time.
We expect the GPU cards will be back to MSRP in the next few weeks, perhaps discounted below MSRP.
We expect that with Gpus, becoming available and reasonably priced we will see a surge of activity in second half of 'twenty two in 2023.
We see a similar positive trend with thresholds.
The market appears to be generally down some 15% to 25% compared to last year's peak. It is still substantially above pre pandemic levels.
Our peripheral segment grew 77% from Q1 'twenty to Q1, 'twenty, two and as we outlined in our Investor day presentations, we think that the peripheral market will continue to drive 20% to 25% annual growth.
We also believe that with our ever expanding IQ control software and innovative new product pipeline, we will continue to take market share.
Having said that our Q1 2022 revenue was lower than expected.
We are seeing the effects of inflation now, particularly in Europe .
Which coupled with the Russia, Ukraine wall has dampened consumer demand.
This in turn has caused channel inventory to be higher than optimal.
And we are working through that adjustment.
It's important to note that we don't think inflation will affect the committee gamers, who once it comes in the upgrade their gaming setups.
We certainly expect that inflation will affect casual or impulse buying at the entry level, but that is not a huge part of our business since we catered mostly to the committed game of sector.
We are therefore, reducing our revenue outlook for the year to between one six and $1 $8 billion.
Michael will go through a complete outlook in more detail later on.
Many of our product lines showed great progress in Q1, we saw compelling growth in our stream deck products, all systems group and all scuffed controllers.
The stream that gives a central control center visits create as extreme as.
Some of the underlying hardware technology behind stream that comes from a company in Taiwan called I display.
Which we acquired a 51% share of all the in January of this year.
This will allow a much closer working relationship between our companies and accelerate our roadmap around products using their displays.
All systems group, which comprises of gaming platforms like course that one close to have engines and origin division of custom gaming Pcs did very well over the last 12 months and we see that sector was a growing opportunity.
Since while the bulk of our business is targeted towards game as he wants to build their own P. CS.
Any people, who do not have the time or skills to do that.
All systems group, we are very skilled custom P. C builders, who are expert at building amazing gaming Pcs.
We launched our new P. S. Five scuffed controller late last year.
Ever since then the demand has been phenomenal, causing us to be sold out repeatedly.
With all ever expanding likes you control software and if there's if new product pipeline.
We will continue to take market share.
In Q1, we made further gains in market share for our components and memory categories.
We continue to hold the number one spot in every major category.
Our El Gallo line of creative products continues to do well and we're making good progress on new categories cameras and microphones.
We believe the extensive software suite for El Gallo products is one of the key reasons that creators are enjoying on your products.
Well talking about innovation I would like to touch on a few products. We have introduced in the past few months.
Thus the MP 600 Pro L. P X solid state drive.
This is a high performance storage expansion products designed for the Playstation five which adds to our product portfolio and addressing the cultural market.
Second of course, our IQ 5000 C. L. G B case.
This is a high flow case with three LNG be cooling fans and lighting strips controlled by a pre installed IQ controller.
This is a perfect platform for building, an amazing allergy B system, using the latest high power Gpus and Cpus.
Finally during the quarter, we launched our latest capture called the H D 60 X.
It's called supports V are all which stands for variable rate refresh.
New feature that he's built into both the P. S five and the Xbox series X.
It also supports 14th 40 P 60 frames per second.
As well as 10 80 pay at 60 frames per second.
I'll now turn the call over to Michael to discuss our financial results for the quarter.
Thanks, Andy and good afternoon, everyone.
In Q1, we delivered net revenue of $387 million well above the Q1 2020 pre pandemic level of $308 $5 million.
This compares to $529 $4 million in Q1, 2021, which was a record first quarter for of course are led by stimulus checks and pent up demand.
Over 70% of the revenue decline in Q1, 2022 versus Q1 2021, whereas in the European region as we've seen European consumer sentiment dropped sharply following the startup of the conflict in Ukraine.
We believe that the channel has reasonable levels of inventory of our products are channel partners, who are adjusting inventory levels based on their current unexpected consumer demand and the decreased shipping times today compared to a year ago. This.
This will cause short term headwinds, but we expect inventory to be at normal levels during Q2.
Turning now to our segments, the Gamer and creator peripheral segment contributed $134 $1 billion of net revenue during the first quarter a decrease of 23, 7% from $175 $9 million in Q1, 2021, but still a healthy 76.
8% above pre pandemic Q1, 2020 of $75 $9 million, the Gamer and creator peripheral segment net revenue contributed 35, 2% of total net revenue an increase of 200 basis points from 33, 2% in Q1 2021.
The gaming components and system segment contributed $246 $5 million of net revenue during the quarter a decrease of 33% from $353.5 million in Q1, 2021, primarily driven by a shortage of reasonably priced gpus.
And supply and logistics constraints.
Was 6% above Q1, 2000, twenty's level of $232.7 million.
Just over half of this revenue came from memory products, which contributed $132 $2 million.
Overall gross profit in the first quarter decreased by 43.4% to $98 million from the record $163 million in Q1 2021 decrease over Q1, 2021 was primarily driven by reduced revenues.
Increased logistics costs and a return to more normal promotional activity gross profit margin was 23, 8% a decrease of 650 basis points from the record 33% in Q1 2021, many due to significant increases in logistics costs, especially ocean freight.
Promotional activity and lower absorption on reduced volumes.
Sequentially. The margin was roughly flat with 23, 9% in the fourth quarter of 2021 with also a couch and inflation effects by raising prices, where appropriate and expect to continue such actions and.
And some of the more severe logistics costs headwinds moderated during Q1.
The Gamer and creator peripheral segment gross profit was $43 $1 million a decrease of 37, 5% from $68 $9 million in Q1, 2021, primarily driven by a decrease in revenue in the same periods increased supply chain and logistics costs and a return to more new.
More and more pre pandemic level off promotions gross profit margin was 32.1% a decrease of 700 basis points from the record 39, 1% in Q1 2021, largely due to the previously mentioned supply chain and logistics cost and rebate levels.
Sequentially margin was up 220 basis points over the fourth quarter of 2021, largely due to a favorable mix shift towards our higher margin ocado and scuffed branded products.
This shows the durables strength of our diverse portfolio of products.
The gaming components and system segment gross profit was $47.7 million a decrease of 47, 8% from $91 $5 million in Q1, 2021, primarily driven by the decrease in revenue in the same periods and increased logistics cost.
Gross profit margin was 19, 3% a decrease of 660 basis points from the record 25, 9% in Q1 2021, primarily due to freight costs as well as some under absorption associated with the lower revenues our memory products margin in this segment was 50.
<unk>, 9% for the quarter.
First quarter SG&A expenses were $76 $1 million, a slight decrease of 2.2% compared to $77.9 million in Q1, 2021, primarily due to a decrease in personnel related costs the impact of outbound freight cost due to reduced Rev.
News was offset by increases in outbound ocean and air freight rates.
Adjusted operating income in the first quarter of 2022 was $13 $3 million, a decrease of $67 $1 million from $84 million in Q1 2021 first.
First quarter net loss was $3.3 million of which $2 $9 million attributable to Coursera gaming, Inc, or a loss of five cents per diluted share as compared to a net income of $46 $7 million or <unk> 47 cents per diluted share in Q1 2021 first.
First quarter adjusted net income was $9 $2 million or nine cents per diluted share as compared to adjusted net income of $58.2 million or 58 cents per diluted share in Q1 2021.
Adjusted EBIDTA for the first quarter of 2022 was $15.4 million, a decrease of $65 million compared to $84 million for Q1, 2021, resulting in adjusted EBITDA margin of four 1% compared to 15.2% in Q1.
2021.
Turning now to our balance sheet.
We ended the quarter with $29 $4 million of unrestricted cash no draw on our $100 million revolver and $247.5 million of debt at face value we.
We spent $4 $4 million for Capex, and one point to $5 million for principal debt repayment. Additionally.
Additionally, we used $19 $5 million and net cash to acquire a controlling 51% share of eye display as we continue to look for strategic opportunities to use the cash we generate.
This is another investment in growth as we prioritize investments in new markets and R&D to bolster our product development efforts.
Barring such opportunities, we'd look to bring our cash balance back to Q3 or Q4 of 2021 levels.
In terms of the full year of 2022, we are updating our outlook as follows. We now expect total revenue in the range of $1 $6 billion to $1 $8 billion.
<unk> operating income in the range of $100 million to $120 million and adjusted EBITDA in the range of $110 billion to $130 million.
We previously expected and approximately 45%, 55% revenue split for the first half.
And second half and now believe the second half will represent a slightly higher portion.
There are some changes in the additional modeling details underlying our outlook.
We are seeing an adjustment of channel inventory to reflect the current demand and we expect that during the balance of the first half we expect sales into our channel to be significantly less than sales out to consumers, we expect channel inventory to be normalized in late Q2.
We still expect gross margins to remain pressured by logistics costs, especially in the first half of the year, but we have started to see some improvements.
We will continue to invest in new product development in order to maintain a vigorous release schedule. We were a moderate other operating expenses in tune with the current business environment.
With the fed rate cycle in progress forecasting interest expenses more difficult assuming no further debt pay down and we now expect interest expense of approximately $2 million per quarter.
The $4 million patent trial win in Q1 2021 is not in our outlook. This amount could vary depending on what the judge rules is subject to appeal and the timing of recognition of a gain if any is uncertain at this time.
An effective tax rate of approximately 24% to 26% for 2022.
And full year weighted average diluted shares outstanding of approximately 100 to 102 million shares.
There was an impact of approximately two cents on EPS in Q1 due.
Due to the accounting for put rights associated with either display there.
There may be further accretion of this over the next several years, depending on performance, but it is unlikely to be even one cent in any quarter.
To summarize our underlying growth trends remained strong and we are executing despite the macro headwinds impacting everyone. We expect the operating environment will improve as we move through 2022, which will flow through to our revenue growth margin improvement and increased operating cash flow in particular.
<unk> GPU prices have continued to moderate and we continue to believe that this will increase the demand for PC components as more gaming Pcs are about we continue to expect that this will occur in the second half of 2022.
With that we're now happy to open the call for questions. Operator will you. Please open up the line for Q&A.
Thank you.
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One moment, please while we poll for questions.
My first question is from Mario Lu with Barclays. Please proceed.
Great. Thanks for taking the questions. So the first one is on the full year revenue Guide I know you guys. Just took it down by 300 million Oh, just wondering if you can give us more color and kind of frame the upside scenario, especially with the GPU pricing coming down.
And the upcoming Intel GTO this summer.
So any color you can provide in terms of.
How those catalysts are embedded in your full year guide thanks.
Okay.
Yeah. So obviously I mean, given that we've given a range Hmm I would say the the upper end of the range is assuming that we get a.
Good pick up from <unk>.
<unk> prices and by the way you've already started to see that happening.
Notably in the U S little bit in Asia, where we see component cells ramping up as GPU GPU prices get back to MSRP.
And we're pretty convinced they're going to go below this ends up here in the next month.
M 70 by the end of Q2, so that's that's baked in we clearly have some softness in the market, particularly in Europe .
Oh that is.
That is baked in.
We're getting to I think we've assumed that that's going to continue.
Throughout the year, but we don't think it's going to be as severe as it is currently because we have some.
Channel inventory adjustments that we need to make.
So I think we've taken all the data that we have available everything we know today.
Obviously, the nuclear weapons, Doug I know, if it's a different matter, but based on what we see today.
We feel pretty good about that range.
Great. Thanks, Andy and then just wanted to hit on the market share commentary, despite revenues being down year on year. It.
It seems you know your products are still outpacing the rest of the industry.
So just curious any you know product lines to call out in particular that has gain meaning.
Meaningful share over the last few months.
But I think every if.
If you think about our businesses in three Thuds right, we've got memory and components, which is two thirds of the business and one third is peripherals in the components area pretty much every category has gained market share.
Two that are notably.
More than we expected was the ones that we've been doing for a while which is memory, which is the first product line.
And pass by his memory went from.
60, and Q4 dollars 65 and in.
In Q1 and by March we were at 67, so that took a huge jump up.
And the same with with most of the rest of the components, but those are the two outstanding ones.
Other product lines that did well we showed it at all.
In a presentation that's on the website.
Stream that could very well, that's not really a market share issue because we pretty much have 100% market share that's the device.
Do we have and our systems business also did very well.
And you can look at that as a market share. Although clearly we have a small market share compared to anybody making gaming systems, but we are very pleased with that progression and then lastly, a we've got two new categories.
Which is microphones and cameras.
A year ago, we had no market share and now we've got a.
Significant single digit market share in both of those so we're pretty happy with all of those.
One of those categories.
Great. Thank you.
Oh.
Our next question is from Rod Hall with Goldman Sachs. Please proceed.
Hey, guys. Thanks for the question.
Wanted to start with the go back to Europe , and the inventory situation I Wonder is there any differential that you see between peripheral and components as one worse than the other from a demand development point of view or is it you know kind of the same in both cases, and then I've got a follow up to that.
Yeah. So I think that what we've seen what is that the more casual impulse buy kind of things that are sub $100.
<unk> tend to have been affected more.
And then in terms of consumer demand than the let's call. It the enthusiastic research products, so people doesn't seem to be holding back or changing their buying habits.
$2000 computers, that's much more driven by GPU and CPU prices, but yeah. The casual peripheral seems to be the thing that people have of moved away from a little bit.
That's the first thing now in terms of what that means for channel inventory is actually pretty similar I mean, there's two different reasons for what's going on but the excess.
Inventory was done in the channel.
Is.
I'd say somewhat uniform across both categories.
It's just a few weeks to high in both categories.
Okay, and then I wanted to watch Chuck was talking about price increases.
And I'm just curious whether you think there's flexibility to increase prices or do you even need to do that I know that there are combating FX, which maybe it isn't as big a deal for us working in the other direction for you, but just curious what youre thinking on price increases given inflation and everything.
Yeah. So we've been at obviously this is not a new thing right price increases because of the cost of containers.
We've been watching for a while to actually even before that with terrorists. So there's.
There's a few products, we've got light chairs in cases, where he doesn't fit a lot into the containers, which means the percentage of freight.
Compared with the cost of the goods is quite significant.
Some cases can be 20% and so those things we raised prices quite early on and we had to.
Everybody had some otherwise you know companies, just making chaz would've gone out of business. So somewhat obvious in other categories. We've been.
Somewhat debating last year, whether to raise prices we were pretty sure.
Freight costs would come down and we're a little disappointed that they haven't come down yet in fact, they tended to peak in Q4, and we're still saying we're going to be elevated all the way through 2022.
So we were reluctant to raise prices when we would then have to drop them again.
But now we have started to raise pricing on a lot of components.
And the component categories, we have a leading market share we're pretty sure that all competitors that will follow they've been waiting for us to base prices.
And then peripheral just a bit more difficult because we've got two big competitors.
Actually not raising prices in fact, I think they've got a longer inventory positioning the channel that we have and so there's a lot of discounting going on so I think that it's very difficult to us.
For us to raise prices in the peripheral categories without losing market share. So we all raising them, where we can but in some cases, we called the FX.
Situation for us essentially means a price raise because we have most of our distributors in Europe by in U S. Dollars. So then they need to raise prices too so it doesn't lose money because of the.
Exchange rates.
And theyre not I guess promotional activities.
Relative to that is for you guys not as much as what you see with some of the competitors is that true or are you seeing it kind of come back and in fact, some of this stuff too.
Well, we've actually more recently started to dial back on promotional activity and I think that all this is this is a view that you have to take some experience, but our view is that when you go into a somewhat soft market.
If you're not careful you.
You discount them and then what you're doing is discounting to people that would have bought anyway.
So we don't we don't think that we need to do a lot of discounting. It's just going to take some time to work through the inventory.
Great. Thank you Roger.
Just to give you a quick insight on to FX.
You know under 1% for the stuff, we do sell in different currencies and that's on the revenue side. Obviously, we have expenses in those regions as well for our expenses also go down when the currency goes down so the effect on the net profitability is even less than a <unk> eight.
8% or so it is on the revenue side. So it's not a significant part of our business and we hedged the balance sheet exposure, where we can.
Oh, great. Okay. That's very helpful. Michael Thanks, a lot appreciate the answers. Thank you.
Yeah.
Our next question is from drew Crum with Stifel. Please proceed.
Okay. Thanks, Hey, guys. Good afternoon. So Andy I think you suggested the peripherals category was starting the year down kind of 15% to 25% ish.
Does your guidance suggests the peripherals business outpaces the components and systems segment as it has the last two years.
And related to that you know you indicated that easing GPU prices will serve as a tailwind for the components business any company specific or macro catalysts you see for the second half for the peripheral segment. Thanks.
Yeah.
Yeah. So that's right the Gpus the GPU data I think it's pretty obvious I mean, that's something that we already see happening in it and you can get on any four of them see people talking about how that's going to play out.
The peripheral sector or segment first.
Firstly it is a seasonal business right. So you do see typically Q3 and Q4 being much more.
In Q1, and Q2 and in fact in some parts of the market.
Where it's more council base, all lower ISP base, you say.
50% of the business being done in Q4, so that's naturally going to happen I actually think that.
Yeah.
What I see in Europe is a little bit of a shock factor and I think people will well recover pretty quickly even though there's you know, there's obviously inflation going on but.
I don't know if you saw this news today than in the U K, which is which was actually one of the most affected businesses.
You know where the time went down all of a sudden we're seeing record spending on leisure and travel in April . So people are kind of shrug off I think some of these issues, but it was definitely a bit of a shock factor end of Q2 end of Q1 and.
Going into Q2.
So I do think that the peripheral business will be a lot stronger in terms of the market second half versus first half yes.
Got it okay. Thanks, guys.
Okay.
As a reminder, if you would like to ask a question. Please press star one on yourself phone keypad.
Our next question is from Franco Granda with D. A Davidson. Please proceed.
Hi, good afternoon, everyone.
So there's a lot of rumors gone out around Gpus coming out this year being very power hungry at least relative to the most recent one.
I'm just curious to get some details around how the power of your psus have been training over the past year and perhaps what your expectations are for the remainder of here. Thanks.
Yeah. So that's a good question and actually it's something that's very helpful to us it's not just pounds.
Power supplies, but it's also cases and cooling fans.
All part of the overall game is moving out through the system and calling the.
And calling the whole system so I'd.
I'd say the last five years, we've seen a steady step up from an average of 650 watts to 750 watts to 851 last year.
Our 2022 2023, the expectation is that most people will be looking at 852 1000, what's required to power. The systems now what that means for us in the market is that the ISP is steadily going up on power supplies and steadily going up on the cases.
So we've actually seen those if you look at NPD data you can see the ASP of the market is steadily moving up from cases against like 90 to 115, something like that so quite appreciably moving out.
As the systems get more complicated and more power hungry.
That's that's very helpful. Thank you and then can you talk about the performance of the coarser sand on monitor now that it's been out for over two quarters and can you also talk about any correlation that you're seeing between the demand for the monitor.
As you put your prices go down.
Okay.
Yeah. So I think second part I'm not sure how much correlation there is going to be directly what people are building the system, and then rushing out and buying a new monitor.
Obviously, the first time buyers.
Perhaps they will monitor we have is is very high and we wanted to start at the high end and I'm proud of the market and overall, we've been pretty happy with the results. We were planning to sell a huge volume. These are.
Six $700 multiples. So we wanted to get in the market and start to get our brand established with monitors and we've done that.
You know a lot more to come on that on that from this is just the first product we launched.
Alright, Thanks, Andy.
Our next question is from Doug Kratz with Cowen. Please proceed.
Hey, thanks.
Think back to January in your Analyst Day, you gave some.
Long term guidance that was predicated on kind of assumed industry growth rates.
And I assume that your feelings about those long term growth rates haven't changed I guess the question is.
You know after sort of the gyrations of the last two years, what do you. What do you think the right baseline is to apply those growth rates off of is it is it. This year do you think that this year is depressed and youre going to get kind of a Europe of above trend growth going into 2023.
How should we think about that.
Yeah, that's a good question.
I think we are now coming conclusion that given the inflation going on in the.
Wall in Europe that to two.
2022 is clearly not going be a growth year for the market.
It's obviously reflected in our outlook our outlook now it's a little early to say.
That means in future years, I actually think that 2023 is going to be a big growth year, because firstly, we're gonna be passed crypto mining, we're going to have new Gpus, and Cpus out and some pretty good games coming so I think that's when theres going to be a big growth. If you think about our model.
He said an average of 8% to 9% on <unk>.
Components and actually if you look at the loss pre Utica pre COVID-19 or pre shelter at home to post it that's about what it's been running.
But yes, if we if we stop this year's baseline move forward I'd say, there's a fair chance that components are going to grow faster than that.
Now.
The other thing is that we baked in a 1% market share gain and I think we've already done more than that in this first quarter already. So I think we are surprised at how much more market share we can gain in the components area.
Peripheral wise, yes.
Yeah, I think we I think the market growth is that just because it's all predicated on new game is coming in and the marketing spending, but I think again, it's going to bid growth off of this year bear in mind that we're already 75% something up from Q1 'twenty.
And the market pretty much in line with the market. So.
There's still and I think we modeled out at a 20% to 25% overall market growth. So there's plenty of growth available in the market.
But yes, it will probably be based stuff.
Of this year.
Likely to be based on what we're seeing now, perhaps 15% to 20% down compared to last year.
Okay. Thank you.
Okay.
Once again, ladies and gentlemen, if there are any additional questions. Please press star one on your telephone keypad.
Okay.
There are no further questions at this time I would like to turn the call back to Mr. Andy Paul for any closing remarks.
Alright. Thank you all look in closing I just.
Wanted to remind everybody we have three pillars of growth.
We outlined at our Investor day.
And they remain firmly in place.
Firstly long term market growth in gaming and content creation is expected to grow at a fast pace and looking back we can now see clearly.
A surge in activity.
During the second half of 2020 in the first half of 'twenty one during shelter at home we.
We do believe that the majority of this surge is from new hardware bias.
And we think they will continue to buy over the next three to five years.
Secondly, we continue to take market share in most categories. This was highlighted by the fact that we and the markets. We track from external sources, we have number one market share in almost every category of components that we sell.
Allows game is to build high performance gaming Pcs.
And we were the top three in almost definitely peripheral category.
In fact in our components area in Q1, we gained market share even further and also your biggest categories.
Thirdly, we continue to enter new categories by both organic development and by acquisition.
And in the last 18 months, we ended three new markets microphones and cameras for content creators and monitors for both gaming and content creators.
We certainly face some short term headwinds from inflation and European consumer confidence.
And the resulting higher than desired channel inventory levels. However, we think this will be overshadowed by a return of gaming platform builds as GPU prices return to normal levels.
Thank you for your time and continued support and thank you for joining us on the call today.
Okay.
This concludes today's conference. Thank you for your participation you may now disconnect.
Okay.
Yeah.
Goodbye.