Q1 2022 WW International Inc Earnings Call

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Good afternoon, and welcome to the Ww International first quarter 2022 earnings Conference call.

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Please note. This event is being recorded I would now like to turn the conference over to Cory Kinda of Investor Relations. Please go ahead.

Thank you to everyone for joining us today for Ww International's first quarter 2022 conference call.

Four P M. Eastern time today, we issued a press release reporting our first quarter 2022 results the.

The purpose of this call is to provide investors with some further details regarding the company's financial results as well as to provide a general update on the company's progress. The press release is available on the company's corporate website, located at where Brent Jive W. W. Dot com.

And that'll investor materials are also available on the company's corporate website in the investors section under presentations and events.

<unk> non-GAAP measures disclosed on this conference call to the most directly comparable GAAP financial measures are also available as part of the press release.

Before we begin let me remind everyone that this call will contain forward looking statements investors should be aware that any forward looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here. Today. These risk factors are explained in detail in the company's filings with Securities and Exchange Commission.

Please refer to these filings for a more detailed discussion of forward looking statements and the risks and uncertainties of such statements. All forward looking statements are made as of today and except as required by law.

Undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information future events or otherwise.

Joining today's call are Donnie CEO and Andy <unk> CFO .

CFO I will now turn the call over to Steve.

Thanks, Corey good afternoon, everyone and thank you for joining us today on my very first earnings call as the CEO of Ww International.

I'd like to thank our board of directors, especially Rainer Boehm and Oprah Winfrey for the opportunity to lead this iconic company at a pivotal time.

I joined the company seven weeks ago and have enjoyed digging in the team across all aspects of our product and business.

There is so much to cover and I want to give you a better opportunity to get to know me.

To help you that I've mentioned in our earnings release, a short video is available in the Investor Relations section of our website speaking further to my experience and my decision to join weight watchers.

But for today I will focus on an assessment of the business immediate priorities and thoughts about where we're headed.

Amy will then cover our Q1 financial performance and outlook.

I've spent the better part of my career building digital communities, specifically with empathy other core.

I look at weight watchers, and I see the original social networks, we gather people around shared interests of health and weight loss.

Our almost 60 years, we have met the needs of members looking for it Ain't a whole way to meet their weight loss goals.

It is clear that in the last few years, there has been a shift in consumer sentiment with many deferring action on these calls.

We believe we can deliver a product that gives them a renewed desire to address it.

Weight watchers through its experience at the intersection of Science and community has been the gold standard and effectiveness and frankly still is.

The digital product has come a long way, but beyond inspiring member community found in connect.

It has remained largely contents and tracking tools, both of which are a commodity on a weight loss journey.

24, seven messaging chat with a coach was a good first step, but the level of coaching found in our workshops.

Where each week you meet with your coach and a group of like minded members.

Lacking the digital only experience.

What differentiates us is a human connection.

Digital tools and features are table Stakes.

Real personal connection.

That's the magic.

The mix shift to digital was accelerated by the pandemic, bringing us to today, where workshops subscribers have come to represent only 16% of the total.

Meaning nearly 85% of our members are not experiencing our gold standard.

I am committed to changing that.

Weight Watchers is one of the most trusted brands in the world.

I'll need to get healthy and weight loss is the first step for money.

We have the foundation to deliver results for consumers, but we're trying to do too much and complicated our marketing and the product and the process.

We know how to help people lose weight and get well because we've done it for almost 60 years.

Oh, Gee accountability and community.

We will continue to deliver that with warm and humanity utilizing the latest technology.

People are begging for simplicity and efficacy in the space and we can and must deliver that.

The company has scaled up investments in the business over the last years, but not all of those investments have delivered impact.

There are many paths to growth. However, the organization has been pursuing too many at once creating complexity and overextending critical product and tech resources.

With continuing pressure on our revenue, we will take action to stabilize subscriber trends of our existing offering while building a platform that will be the foundation for a path to profitable growth.

To do so it was clear to me that structural changes were required to create simplification.

Drive throughput and ensure accountability.

On April 22nd we announced a restructuring to simplify and flatten the organization in order to minimize redundant workflows and improve decision making.

These actions were primarily focused on reducing layers of executive leadership with V. P N about positions to decrease by about 30%.

The organizational realignment combined with real estate is expected to deliver nearly 30 million of savings on an annualized basis.

We need to narrow our focus to what we do best weight Watchers is the most clinically studied program in the world.

And we do weight loss better than any other program full stop.

We need to focus all of our efforts and to advancing this position by building a shared experience that keeps current members engaged and excites new members.

So that means we're pulling back on certain initiatives, while many of these were strategically compelling.

Investment and resources required were a distraction and didn't deliver the necessary return.

Starting with digital 360.

The 360 was the company's first attempts to bring coaching digital subscribers.

And attract a younger demographic.

Which makes strategic sense. However.

However.

I think it was designed D 360 did not accomplish these objectives.

<unk> and the product was low.

Therefore, we will be sunsetting, the D 360 products starting in the U S and Canada.

As appropriate we will upgrade these members for the same rate at their current membership.

The decision to Sunset serves as an important cultural shifts to embracing data informed product development and calibrating quickly off those learnings.

We will take the learnings from D 360, and develop a roadmap to bring coaching and community to our digital products and a compelling holistic way for all members.

Our team is focused on creating a new app experience that is streamlined around three pillars.

Coaching.

Ability and community.

This is a process that will take up to 18 months, but there will be quick wins, along the way as we improve the core experience through a data informed feature pipeline with the goal to stabilize the business trends in 2022 and.

And to return to member sign up growth in 2023.

At the same time in person workshops will become a priority.

We are going to attack enable our workshop experience to help coaches better serve our members.

The studio is a critical differentiator.

Though the digital experience as part of your everyday.

It's convenient after all.

20 years in digital community building has taught me that nothing compares to I R O S.

In real life.

Well end up periods workshop subscribers were down year over year in Q1 global in person attendance was up 95% year over year.

Demonstrating the desire to meet in person.

With workshops subscribers down by nearly 700000 since the pandemic, we have a near term opportunity to build back the business. While we work on our improved digital only experience, which notably has remained higher than pre pandemic levels.

We will continue to optimize our studio footprint, particularly a fixed location.

We are also committed to investing in our studio teams.

Effective may 1st all U S member facing employees are receiving a wage increase.

I believe it's incredibly important for us to not only create an environment that allows people to do their best work.

But to bring greater purpose to the employee experience across all areas of the business.

He's coaches are the touch point to our members a source of motivation and support.

Not to mention our critical feedback loop to our product roadmap.

As we narrow our focus to what we do best we are also rationalizing other parts of the business.

First.

The enablement of our E Commerce platform has been essential to our consumer products business, particularly given the changes and limited accessibility to our studio footprint during the pandemic, which previously had been our primary channel product sales.

But over the last few years, we have also significantly expanded our SKU counts to include products across a variety of wellness categories.

Farmers are self reported as people living with diabetes.

Compared to the 12% prevalence of diabetes among adults with a b M I over 25.

We have a feature roadmap that Taylor's our core product for people living with diabetes that we believe will attract more members and closed the prevalence gap.

Before I turn the call over to Amy I would like to thank <unk> for his many contributions the company over the past 10 years and his roles S. C O O N.

Previously C F O.

All the intention of the changes to our leadership team is to simplify and D matrix the decision making process.

I also recognize the personal impact of departing friends and colleagues.

The contributions of the impacted employees arguments and I. Thank them all for everything they've done for Ww.

Now to Amy.

<unk> we.

We finished the quarter well ahead of our EPS guidance will demand continued to pressure volume on a year over year basis. It was in line with our expectations.

In light of demand, we pulled back on marketing in the quarter, particularly outside of the U S or macro factors were likely impacting the efficiency it's been.

Additionally, better than expected gross margin and G&A cost controls in the quarter also contributed to the overdrive.

For Q1, 2022, we finished the quarter with 4.5 million subscribers down 8% from the prior year and relatively in line with Q1 of 2018.

Workshop and has periods subscribers of 719004 down 3% year over year and nearly 700000 from the onset of the pandemic in Q1 of 2020.

Digital end of periods subscribers were down 9% to 3.8 million.

Revenue of 298 million with them, 10% with expected year over year subscription headwind from a lower <unk> subscriber base.

Additionally, the weakening of the euro against the U S dollar compared to Q1 of 2021 created approximately 200 basis points of pressure.

Consumer products revenue comprised of E Commerce workshop product sales and licensing of 35 million was down 13% driven by a 19% decline in e-commerce sales, primarily due to lower traffic and conversion.

But just a gross margin of 60.5% is up approximately 60 basis points from prior year, primarily related to hire digital subscription mix.

Marketing spend in the quarter of 108 million was down 8% year over year and lower than we planned.

Decrease and spend it was primarily in Europe , where macro uncertainty with likely to affect the efficiency and effectiveness of investment so.

So we pulled back, particularly in certain international markets and are planning to redeploy those dollars in the back half of the year.

G&A of 64 million was down 10 million for 14% versus prior year, primarily due to adjustments to bonus expense and timing difference.

In addition, we've been cautious with G&A spending in Q1 in light of the demand environment.

I trusted operating income of 9.1 million was well ahead of guidance as I mentioned, the strong gross margin and lower marketing and G&A expenses drove the outperformance, allowing us to increase income levels to prior year.

P. P S with the loss of 12 cents when excluding one time items in Q1 in the prior year quarter. This is an improvement of eight cents versus Q1 2021, primarily due to lower interest expense in the quarter.

I've seen that has discussed we've taken a hard look at streamlining our organizational structure and announced a restructuring on April 22nd.

Not only do we believe that this action right sigh spending a current demand levels, but are also confident that the reorganisation simplifies the organizational structure will improve accountability and speed decision, making while focusing resources on higher impact initiatives.

To summarize the impact of the cost actions in queue too we expect to take a restructuring charge in the range of 18 to 22 million.

Discharge is comprised of approximately $12 million to $16 million in severance and related payments the vast majority of which will be paid over time.

In addition, we plan to exit approximately 41 unprofitable Brandon workshop locations in the U S.

In each case, we will either consolidate the workshop into existing locations or replaced with a flexible third party location with a more efficient cost structure.

We estimate annual savings related to the restructuring actions to be nearly 30 million within your savings of 16 to 20 million.

And I expect that the savings will largely benefit G&A.

Steve I mentioned, we expect to redeploy a portion of the total savings to investments in our workshop field organization.

Turning to our outlook for 2022.

We will continue to plan cautiously for the balance of the year and expect it current demand trends will continue in the near term.

Although the comparisons to prior year will get easier as the year progresses.

Additionally, we are evaluating the current your financial impact of the re prioritization of initiatives, including the Sunset a D 360 <unk>.

Transitioning hour approximately 200000 D 360 members to workshop plus digital subscriptions.

<unk> rationalization in consumer products.

With a jump off point of 4.5 million subscribers at the end of Q1, we would expect to end of the year in the range of 3.7 to 3.9 million subscribers, which would be consistent with the typical seasonal decline from Q1 to queue for.

With revenue headwind of approximately 30 million from the lower subscriber level entering 2022 versus 2021 and lower end of period subscribers expected for your N 2022, we expect revenue for the full year to be down in the mid to high single digit.

Adjusted gross margin is expected to be at or above 60%.

Which includes the impact of investments in the U S field operations D.

As we plan to deploy marketing savings from Q1 to the back half.

I expect that full year marketing spend would be flat to 2021.

Excluding restructuring charges adjusted G&A will likely land in the 255 million ranch.

Adjusted operating income for 2022 is expected to be and the 160 to 170 million dollar range.

The effective tax rate for the year is expected to be approximately 22% when excluding the impact of restructuring charges and for your interest expense is expected to be approximately $76 million.

Therefore gap E. P. S is expected to be in the range of 72 to 78 cents per fully diluted share incorporating the negative impact of approximately 20 to 24 cents of estimated restructuring charges.

Related specifically to Q2, we expect revenue to be down in the mid to high single digits with gross margin percent and marketing spend comparable to last year.

Turning to the balance sheet. We ended two one with approximately $128 million cash plus and Undrawn revolver.

Q1, net debt to EBITDA leverage ratio was 4.6 times up slightly from 4.5 times at your end.

While our leverage ratio is likely to increase in the corridors ahead, we expect to use excess cash flow generation to repay debts.

Staff that can DNA, primarily driven by capitalized software or both anticipated to be in the 40 million dollar ranch.

In summary, we are pleased with the G. P S overdrive to expectation in Q1 in a soft demand environment.

As you would expect 2022 will be a year of transition for W. W. We have taken significant and decisive action to reset the cost structure and manage earnings in the near term while shifting the organization's focus to executing on a new narrow set of priorities.

To accelerate growth going forward with a scalable cost structure as the foundation for operating margin expansion.

I will now turn the call back to see Emma.

Thanks Amy.

As mentioned the intersection of Science and community, where we X L and we will continue advancing these areas.

And in turn we will attract more members across new cohorts couples millennials, new mom as well as reactivate former members and bring them back to weight watchers.

We must elevate the product experienced alongside or narrative connection is everything.

I plan to deploy my expertise to be an advocate and service of our members.

After years of social distancing and polarization people are suffering more than ever from a lack of connection.

<unk> Brown says that connection is the energy that exists between people when they feel seen heard and valued.

When they give and receive without judgment.

I witnessed this energy and I'll workshops.

A group of people walk into a space because of a shared interest in weight loss.

Sure there vulnerability.

And they walk out connected lifted with a sense of belonging.

Not only will we translate that experience to the digital landscape.

We will also focus on attracting members back to her in person experience.

When we achieve that we will create a network effect that delivers efficient acquisition improved engagement and longer retention.

Together, putting the building box and place to drive meaningful subscriber growth.

As we execute on a focus list of priorities and a streamlined organization with a lower cost structure.

I am confident we will be able to return the company too profitable growth.

Thank you for joining us today.

We are now happy to take your questions.

We will now begin the question and answer session.

To ask a question you May press Star then one on your telephone keypad if.

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To withdraw your question. Please press store then too.

At this time, we will pause momentarily to assemble our roster.

And our first question will come from Greg Baddish Conahan of Wolf Research. Please go ahead.

Good afternoon. This is <unk>.

Really appreciate the pace of changes in color on <unk>. This quarter of the business with me can you talk a bit more about how you. How you can replicate the best of the workshop experience on the App and the type of investment that will be needed to achieve <unk>.

Your goals there and then how would you prioritize and invested in the workshop business versus the digital digital platform.

<unk>. Thanks for your question.

So let me start off by saying that I was a member myself <unk>.

And I can speak to the advocacy and the accountability of of the program.

What we know is after two years of social distancing people are fatigued and they're craving personal connection and we can see indications of that with the workshop attendants as being being up almost 100 per cent in Q1. So I believe we have an opportunity to meet people at this time when they're seeking a connection.

Through a more modern tech enabled workshop experience.

We need to remember that only two years ago workshops subscribers double what they are today. So that's that's a near term opportunity for us as we work on the digital experience.

So you know in terms of of the the mixture between we're going to invest in wherever that ought to be is that.

So we're really excited to see you know investment in the space and prioritizing it an environment, where customer acquisition cost has been exploding and digital as crowded even recently I heard met a platform to say that the average price per <unk> had increased 30 per cent your.

Over here in Q1, so IRL discovery can really set us apart and serve as a halo effect for digital subs and I recently heard this and I and I like it is bricks save clicks.

And he's censor it's Amy the only thing I'd say is if you recall you know we've done a lot of work on the on the cost structure on the workshop side of the business over the last several years, we still have quite a bit of overheads to leverage and so you know I think we've talked before that we can double attendance and still not add a single workshop.

We're still comfortable.

With the mobility statistics for our for our members surrounding workshops, and so I don't I don't envision a significant amount of investment in the in the in the real estate footprint and we've been able to use what we call those studio at the variable third party lease space in order to in order to.

To step up a more efficient model and to very those courses as workshop members return. So in the short term I don't see other than what FEMA mentioned as it relates to the wage increase for you a sealed operation I don't I don't envision uhm, a significant amount of fixed costs investment the short term.

Got it that's that's really helpful. And then just to go back to your point point on the marketing and how are you thinking about lowering customer acquisition costs over time and approving returns there because that tends to be a pretty big part of the collection and the piano and should we looked at 2023 diabetes and as the next catalyst to really get subscriber growth again, maybe what's implied.

The frequent 73.9 million subscribers, but just any cadence on how we should expect sort of <unk> business.

But I just wanted to say that you know I think.

The onus is on us to drive interest and demand and the and the product needs to do that work, we really relied on marketing to to do the recruitment, but when the product experience works.

The the recruitment is more efficient because it's driven by word of mouth.

We've also remain really agile with our marketing span or we have more visit visibility now into our initiatives that we've in-house performance. So we can make better or real time decisions.

Yeah I'd also just add to that you know that we you know we we we look at recruitment from an L. T V perspective, and so we're trying to attract a member with the greatest L. T V, but but it should be no surprise that the cost of acquisition is increasing in this environment. So we we've maintained and we've historically.

<unk> told investors you know, we've maintained and and L. T V to CAC ratio above five to one and I think that's gonna worsen over the course of 2022, given where subscriber bases and given our intention to redeploy savings in marketing in Q1 to the back.

<unk>.

Got it and then just one final one is it released to use weight watchers other than more often than we've seen over the last few years, you can bring that brand back as as an opportunity given the sort of the name recognition that that has versus ww have any thoughts on brand and overall positioning the appointment.

Look I mean weight watchers is at an iconic brand and it's a legacy and a heritage that we are incredibly proud of so you will see us use both names interchangeably.

Caused by your nickname W. W or call us weight watchers, where we're both.

Got it thank you.

The next question comes from Lauren Schenk of Morgan Stanley . Please go ahead.

Great. Thanks, Thanks for all the details and wanted to dig in a little bit on on the focus on the studio maybe remind us where you'll end from a footprint perspective. After this most recent restructuring and do you think that's the right number longterm or you know is is there for the reduction or perhaps even you know some some new.

Location that you think you can add.

Second what do you think sort of initial thoughts in terms of what the right mix of digital vs studio subscribers will be over the medium term.

And then lastly, we we we used to talk about how great digital margins or higher.

How do you think about you know this this refocus on through to your Apache Martin Longterm.

Yeah. So I I can I can start there today today in the U S. Well I'll say post the 41 closures will be just below 400, Brandon Brandon workshop locations in the U S. And so you know I think it's a wait and see.

Lauren really from my perspective, we're gonna continue to evaluate the profitability of these location location by location and we're gonna take action Accordingly, but you know at this point, we're relying <unk> you know I think it's also worth mentioning by the way that the.

<unk>.

Those workshop closures orange going to change the accessibility of workshop location for a member. So you know 70 per cent of our members will still be within a 15 mile drive from a workshop location, whether it's whether it's branded or whether it to a third party with a third party kind of pay.

As you go location and so right now we're comfortable with that level. You know, we're we're in a bit of a trough from a workshop subscriber perspective. We ended Q1 at you know under 720000 subscribers, which is you know about half aware was at the end of Q1 of of 2020, and so you know we serve.

Really don't Wanna do anything that would impair our ability to service our members and so I think this is this is this is a good location or if this is a good spot for us to be in being able to build badge using <unk>, a variable cost model versus a fixed cost model.

As it relates and then I'll skip to the end of that now, let's see steam a jump in as as it relates to margin.

Digital margins are still really strong digital margin. In Q1 was was was 80% and workshop gross margin what was over three and so we we are absolutely committed to.

Maintaining strong strong gross margin on both sides of the business, but I think it's a little bit more of a wait to see from a leveraged perspective about how soon we can get back to you know a gross margin workshop business. It was at you know at at pre pandemic levels.

Yeah, I would just add that we want a pair people with what works best for them and as Amy said 70 per cent of our members in the U S will still be within a 15 minute drive to the nearest location. So these additional clothing, they're not an indication of how we feel about workshop business workshops in coaching.

At a competitive advantage for us and and we'll invest in them, but in a scalable way.

And you know I I've been building digital communities for a long time nothing compares to in real life fast or magic and you know you'll see us moving.

More in the direction of one holistic product experience that you know when you when you're drawing ww. It shouldn't be you joined the App, where you draw the workshop.

<unk>, our membership you join our program and and and that intersection between science and community that that's what makes us special.

Okay, Great and then just one clarification on the guidance for the full year I wasn't sure. If if it includes the impact from the Sun setting of a D 360, and the product streamlining or or not.

Yeah, I I I would say I would say more than that it does we're still obviously you know see what she has been here seven weeks, we we've been we've been pretty busy in those seven weeks and so obviously, we're still evaluating the impact of some of these initiatives and building out you know plan to to wind these same things down thoughtfully.

I think I've got I think the guidance range incorporates you know some conservatism to account for any expected downsides impact.

Great. Thank you.

The next question comes from Alex Firman of Craig Hallum. Please go ahead.

Great. Thanks, very much for taking my question and nice to speak with you for the first time was wondering if you can talk a little bit more about this done setting of the three six the product that you feel there could be a role in the future for for a mid price offering.

Alex Nice to talk to you. So we are.

You know integrating coaching into our digital product that was the right strategic decision. It just didn't deliver on the K P. I.

Our members they want to feel a sense of belonging and a connection to the coach.

Keep hearing show me that you know me and D.

D 360, Unfortunately didn't deliver that I I don't I I think the bar is too high for one too many digital content business and instead, we're gonna come back to what we know you know we've been doing coaching for almost 60 years and you know our product.

Needs to do the talking not videos.

We mentioned that you know 85 per cent of our subscribers. There. They didn't have access to coaching as a as a result of workshop closers closures and so we're now focused on bringing that to the core product in a compelling way and I and and I I.

I I think that it.

As far as different tiers again, we want to simplify the product experienced it to we're looking and and testing different models around that.

And that was today, we've got about 200000 D 360 active and so over the coming weeks in the in the U S and Canada.

We will be giving this active vs an opportunity to to get an enhanced value membership at the same price and so will be transit transitioning them into a different memberships here uhm and going forward. You know, we're we're expecting will continue to have our digital and our.

Our digital plus workshop membership and going forward. My expectation is is that new members to the brand will be joining you know in a in a roughly the same proportion.

Okay. That's that's really helpful. Thank you.

The next question comes from Steph <unk> of Geoffrey's. Please go ahead.

Thank you good afternoon, everyone and we have two questions. The first is on some of the cohort that you mentioned I think we can talk to about diabetes, but I know you've had specifically designed programs and marketing programs in the past for postpartum and repeat diet or is and maybe even community seekers now talk a little bit about how you think about cohort in your target.

Markets and how you methods into some of your new strategies around community.

[noise], thank stuff well I don't believe we should be building a product for a demographic or specific cohort.

We we should build a a product experience that it has great engagement and retention and ultimately spend to acquire different cohorts from a first time member standpoint, but right now we're really focused on improving.

The product and our focus is on retaining and attracting.

Our current demographic and and black members and.

But I do want to spend a minute on on diabetes and she sent you ask because I think there's an opportunity and and you know as part of our new food plan people living with diabetes were able to use our program to help manage what they eat and that was the first step towards closing.

The prevalence gab, so six per cent of our U S. Members are self reported as people living with diabetes and that compares to 12% of of adults living with diabetes with a b M. I O over 25. So so we just close the prevalence gossip about 250000 members and.

Honestly I believe we can exceed it and we have results from a clinical trial of our D. S. Diabetes programs that are really encouraging showing significant improvement in weight blood sugar glycemic control of blood pressure diabetes distress and participants on the W. W program <unk>.

<unk> <unk> managing their diabetes was easier.

Specifically that the supportive community with critical and help them understand.

Gave them a sense of belonging because they were with other people that understood. The journey of having diabetes. So yes, it's a growth opportunity and but I I want to emphasize that I believe that this cohort is just as important as all our other members. We are focused on improving the experience for all members.

Okay. That's helpful. And then just to follow up on Alex's earlier question around pricing.

Is it your view that you want to compress the price layers and have one standard price and that price would include a physical experience if chosen or are you still managing the business into the two tier model.

Have you had in the past.

We're we're gonna continue testing various pricing and promotion strategies I am very interested in bringing more simplification to our membership model.

For instance, we recently simplified our pricing page and as a result, we saw a really strong conversion any U S 65 per cent of 212022 sign up chose a six month or longer initial plan length, and that's versus 50 per cent in Q1 of 2021. So.

You know more on that to come but again, we are we are.

We are testing and learning.

Okay. Thank you.

This concludes our question and answer session I would like to turn the conference back over to see must astony for any closing remarks.

Alright, well you know as we talked about I'm seven weeks in and we've been able to late <unk> framework to return to profitable growth, we've executed in Oregon organizational restructuring developed high level priorities Deprioritized, others I've spent 20 years in the <unk>.

<unk> industry building digital communities and I've never seen a better opportunity to do that and with W. W. The combination of our track record and advocacy plus engaged membership is the reason I'm here.

Thank you again for joining us today I look forward to keeping you informed on our progress and happy Cinco de Mayo take care.

The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.

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