Q2 2022 Radware Ltd Earnings Call
Welcome to the Radware conference call discussing second quarter 2022 results and thank you all for holding all lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question. Please press star one again.
As a reminder, this conference is being recorded August 820, 22, I would now like to turn this call over two years ago Erez Director Investor Relations at Radware. Please go ahead.
Thank you Angela and good morning, everyone and welcome to otherwise second quarter 2022 earnings conference call.
With me today are really superb president and Chief Executive Officer, and Guy has he done Chief Financial Officer.
A copy of today's press release and financial statements as well.
So for the second quarter it available in the Investor Relations section of our website.
During today's call, we may make projections or other forward looking statements regarding future events or the future financial performance of the company.
These forward looking statements are subject to various risks and uncertainties and actual results could differ materially from where this current forecast and estimates.
Factors that could cause or contribute to such differences include but are not limited to input.
From the COVID-19, pandemic and general business conditions.
Our ability to address changes in our market and now we're industry changes in demand for products, the timing and the amount of for this and other ways can be done from time to time in the hardwoods filings.
Got you to the documents the company files and finishes from time to time with the SEC specifically the company's last annual report on form 20-F F. 'twenty.
When people want to do.
Undertakes no commitment to revise or update any forward looking statements in order to reflect events or circumstances. After the date of such.
Excuse me.
I will now turn the call to always disappeared.
Thank you Scott and thanks to all of you for joining us today.
In the second quarter, we drove solid results.
Revenue grew 8% year over year.
EPS was 18% and cash.
Flow from operations was very strong at $71 $5 million.
Cyber security plays a pivotal role in today.
The business environment.
As a provider of real time action in terms of the fundamental forcing defending our customers' most critical applications and data centers from cyber attacks.
As the threat landscape continues to evolve with continuous increase number and size of it that our customers must ensure their business continuity strengthen resilience and improve the customer experience.
Therefore, we have every reason to believe that the demand for our solutions will continue to grow in the long term.
At the same time, we also believe that uncertainty is present in the current macro environment might impact the spending behavior of our customers in the short term.
Recently, we have seen some delays more than usual and lengthening sales cycles. The notes using Americas enterprise with some customers opting for stage deployments.
Looking at the bigger picture lateral is a healthy company and we are well positioned for signs of recession.
We operate in a large and critical market with a growing addressable market.
We continue to deliver and forecast sustained gross margin and healthy cash from operations.
We have best of breed technology, which provides a better protection for our customers.
We have a large customer base that is diversified across industries and geographies and we have a strong balance sheet with more than $440 million in cash.
Backed by these assets, we remain optimistic about the long term and therefore, we will continue to make investments in our business and specifically in our strategic cloud security initiatives.
Strong balance sheet with more than $440 million in cash.
Cyber security solution is highly correlated to the level of threats and attacks.
The long term.
International conflict in Eastern Europe is a clear example for the use of cyber attacks by nation state.
Purity Ines.
<unk>.
Please a couple of months ago, we announced that the crane.
We shouldn't is highly correlated to the level of threats and attacks.
Protection.
The international conflict in Eastern Europe is a clear example for the use of cyber attacks by nation state.
First doctor and applications in face of daily attacks.
So we announced that Ukraine.
<unk> is a great testament to the capabilities.
Sure.
Using our cloud Ddos protection and cloud application security.
So brilliantly.
The infrastructure and applications.
Yes.
<unk> face of daily attacks.
Compared to the second quarter.
Tax blocking these attacks is a great testament to the capabilities we.
But so our web application attacks.
The second quarter of 2022, Ddos attacks were brilliant.
<unk> by 24%.
Please ask that we blocked.
And that drove the 148.
Locked in quarter of 2020.
Clearly active threat landscape creates a huge challenge to enterprises around the world.
Thanks.
The midsize customers have the same cyber threat.
By 24%.
Yes.
And that border tax that rose to 148.
It cannot afford the required capex investments.
Eight threat landscape creates a new challenge to enterprises around the.
The high end solutions.
The mid sized customers have the same cyber threats.
<unk> allows them to enjoy.
Yes.
The high end level of protection.
And with fully managed services and enable us to increase our customer base.
So they'll need that.
This growth rate.
Managed by themselves the high end.
Rates continued to expand our cloud service footprint and capacity.
Enjoy.
<unk> recently opened new points of presence in Taiwan.
<unk> it services and enable us to increase our customer base.
On sprint expansion to penetrate new customers and geographies.
This quarter, we continued to expand our cloud service footprint and capacity.
<unk> from.
We recently opened new points of presence in Taiwan.
Yes.
Don.
Block sophisticated boats that debate.
But footprint expansion to penetrate new customers and geography.
<unk> algorithms enabled genuine website visitors.
So based on the product.
Dr. Jeffrey.
Strong set of crypto mitigation algorithms that block sophisticated boats that debate.
Due to receive market recognition.
Last quarter <unk> was named the leader.
Good.
Pro forma in the innovation Hamish Steve of <unk> application.
And API protection later reports.
Paul <unk> awarded <unk>, the highest possible scores and decrease their categories such as all banners.
<unk> was named the leader.
API discovery data leak protection.
Hamzah application and API protection radar.
Advanced knowledge solutions named the leader.
The highest possible scores in secret direct categories, such as <unk>.
Fifth technology and customer experience management.
As for the.
We also received the highest combined ratings for technology excellent.
In addition, quadrant knowledge solutions named Roger delay.
<unk>.
Spark metrics for Ddos mitigation report.
Sure some of the key wins, we had in the quarter.
Experienced management.
<unk> signed a large ddos deal with 90 services and web hosting company.
Dan.
And customer impact.
Multiple high volumetric attacks that we're not blocked by the incumbent solution.
I would like to share some of the key wins, we had in the quarter.
Plus protect.
We signed a large ddos deal with <unk> services and web hosting company.
Action automatically and without any intervention from there.
That we're not blocked by the incumbent solution.
So we also expanded our business with one of the world's leading software and SaaS companies.
Our solution is blocking massive attacks in these customers daily.
Restructure.
And without any intervention from there.
Sure.
Protective.
During the quarter, we also expanded our business with one of the world's leading software and SaaS company.
This financial service.
Customer is building a new internet gateway infrastructure.
<unk> has been suffering for a long time without outages.
Protective.
<unk> by sophisticated and massive both.
Another large deal this time for our Bot manager solution with one of the largest financial service.
Erica.
This customer has been suffering for a long time without outages.
<unk> portfolio of data center and application security solutions.
This deal was done with our partners in ASEAN.
Should do to bring our solutions to a broader set of enterprise customers around the.
To recap.
We are a strong and healthy company in terms of financials.
Portfolio.
First in terms of customers and geographies.
Sure.
Enabling us to overcome macro challenges and deliver sustained revenue growth.
As to a broader set of enterprise customers around the.
But I would like to thank our customers shareholders and employees for the confidence and thus the placing module.
Both customers and Geo.
On the call over to guidance.
Growth in us to overcome macro challenges and deliver sustained revenue growth.
With profitability.
Our financial results.
I'd like to thank our customers shareholders and employees for their confidence in us replacing Ludwig.
<unk> for the third quarter of 2020.
Guy.
Thank you Roy and good day everyone.
Two I would like to remind you that unless otherwise indicated.
Actual results.
<unk> result.
<unk> for the second quarter of 2022.
Our results on GAAP.
For the third quarter of 2020.
GAAP available in the earnings press release issued earlier today.
Two financial overview, I would like to remind you that unless otherwise indicated all financial results.
<unk> quarter 2022 revenue grew 8% year over year.
On GAAP.
$5 1 million compared to $69 7 million.
They are at today.
<unk> period of last.
<unk> investors section of our website.
Here down.
Revenue of the Americas in the second quarter increased to $29 5 million.
Year.
Presenting 6% growth in Q2 2022.
<unk> $9 7 million.
2021.
As of last.
One growth rate is the same 6%.
<unk> will be compared the revenue of the Americas.
Here.
Here the quarter increased to $29 5 million.
Representing 6% growth in Q2 2022.
<unk> sales cycle.
Through 2021.
Our large enterprise customer.
The same 6%.
<unk> in the region.
<unk> had the revenue of the Americas over the trailing 12.
Double digit revenue growth in the second quarter, reaching $29 7 million revenue.
Months sales cycle.
4% growth year over year consistent.
<unk>.
The longer term trend represents.
And.
That by the 27% growth in trailing 12 month.
Strong double digit revenue growth in the second quarter, reaching $29 $7 million revenue.
<unk> 2021.
4% growth year over year consistent.
A modest 1% increase.
<unk> presented.
<unk> on a trailing 12.
That percent growth in trailing 12 months.
<unk> account.
<unk> revenue was $15 7 million.
And APAC account.
Compared to Q2 2021.
<unk> total revenue.
One term trends in APAC represent a modest 1% increase.
Revenue and profits.
<unk>, playing 12 months.
Americas and EMEA.
<unk> through 2022 was 83, 3% compared to 82, 3%.
The remainder 21% of total revenue.
And then an expansion of 100 basis.
And says and profit.
<unk> improved is mainly the result of the complete integration of security there.
83, 3% compared to 82, 3%.
The structure.
Period in 2021.
An expansion of 100 basis.
In quarter of 2022 were $54 1 million.
South of the complete integration of security them.
Compared to the same period in 2020.
Related to cloud infrastructure.
Fair enough predominantly due to additional R&D head count.
Friday expenses in the second quarter of 2022 were $54 1 million.
<unk> integration.
Turning an increase of 11% compared to the same period in 2020.
Net income was $8 5 million compared to $8 8 million in Q2 2021.
One <unk> on our cloud and <unk> initiatives.
Operating expenses level.
<unk> of security that integration.
Level last quarter, we shared with you the new structure of Robert which consist.
$8 5 million compared to $8 8 million in Q2 2021.
Of <unk> cloud security as a service.
On operating expenses.
This comprised of Skyhawk and.
Level four we shared with you the new structure of Robert which consist.
<unk> 5 million.
Application delivery.
Exiting $2 1 million impact.
And cloud security as a service.
Talks.
The HOKA business, which comprised of sky.
Second quarter.
Mark.
<unk> 22 was 18 cents compared to <unk> 19 last.
<unk> was $10 5 million, which includes the negative $2 $1 million impact on adjusted EBITDA.
Here this quarter.
Sure.
<unk> increased by 80%.
Sure for the second quarter.
<unk> 21 to 187 million.
<unk> lost.
<unk> grew by 10% over the second quarter of 2022.
Year end cash flow item.
Two 5 million.
Items deferred revenue this quarter.
Strong cash flow from operation in Q2, 2022, which totaled $31 5 million.
10 million.
Two $8 8 million in the same period of last.
Quarter of 2022.
Tier cooperation.
<unk> 95 million.
Impacted primarily by strong collection.
Strong cash flow from operation in Q2, 2022, which totaled $31 5 million compared to eight 8 million in the same period of loss.
<unk>, which is shares and the amount of approximately $18 1 million.
At year led primarily by strong collection.
With approximately.
It's an account receivable.
<unk> did $2 million in cash.
In deferred revenues.
Cash and marketable securities.
During the second quarter, we repurchased shares in the amount of approximately $18 1 million.
As Brian mentioned earlier wildly.
22 with approximately.
While the current global macroeconomic environment posed some uncertainty.
A couple of those securities.
<unk> hybrid security spending in our domain.
This includes my remarks with guidance.
The long term.
However.
<unk> said earlier wildly.
Our logo sales cycle, among large enterprise customer.
Global macroeconomic environment.
Theres more prudent approach.
<unk>.
<unk> in the short.
Cyber security spending in our domain.
For the third quarter to be in the range.
<unk>.
$3 5 million.
<unk>.
75 million.
Lager sales cycle, among large enterprise customers.
Term.
We chose to take more prudent approach.
Our opportunities we continue to invest in infrastructure.
<unk> for the third quarter to be in the range of $73 5 million to 75 million.
Cutting expenses to be between 54.
And our long term.
Sure.
Positive.
View on the market and our opportunities we continue to invest in infrastructure.
Development reviewed earlier, we anticipate Q3 2022.
Sure.
Diluted earnings per share to be between 15.
These 54.
<unk>.
<unk> 5 million and 56.
Result of the expected revenue for the third quarter, we are forecasting <unk>, 6%.
<unk> reviewed earlier, we anticipate Q3 2022.
<unk> earnings per share to be between 15.
<unk> for questions.
<unk> <unk>.
Operator please.
Result of the expected revenue for the third quarter, we are forecasting six six.
Then the number one on your telephone keypad.
<unk> 22.
I'll now turn the call over to the operator.
From from Alex Henderson with Needham.
Sure.
At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
In the quarter it looks to me.
We will now take our first question from Alex Henderson with Needham.
For the currency translation hit in the quarter.
Sure.
<unk> first of all is that right and then second.
Can you talk a couple about a couple of issues. The first one was in the quarter it looks to me like.
Two the shekel is at this point.
<unk>.
Not for the currency translation hit in the quarter.
Moving to exchange rates over the last.
<unk>.
As we look forward can you remind us how you're hedged and what's your approach to the shekel is at this point.
So I'll start actually with the second part of the question.
<unk> seen a very significant move in the exchange rates over the last.
So middle of the first half of the year.
Since the war started nukes.
<unk> really shekel versus U S dollar didn't impact.
Right.
Look at the non-GAAP .
Sure.
Actually with the second part of the question.
GAAP, we can compare financial.
The hedge from the first half.
From a GAAP and non-GAAP and then you can see that.
The FX.
To see the impact of the new Israeli shekel, we already hedged.
Thanks, a lot when you look at the non-GAAP .
Think of 2020.
GAAP ink, but you can compare financial.
Three.
Question.
Come from GAAP and non-GAAP and then you can see that.
In 2020.
You can see the impact of the new Israeli shekel, we already hedged.
Mid 'twenty three.
At the beginning of 2020.
The trade, but it is partially it's not 100% hedged partially.
Three.
Okay.
Yes, just before you get off of that your head partially manned 20.
Yes.
How would that.
Mid 'twenty two to win.
How much would you save on a full year of 23.
In 'twenty three but it is partially it's not 100% hedge partially okay.
It is supposed to go down.
If the exchange rate stays where it is.
How would that.
Out of 100 basis points.
Costs, how much would you save on a full year of 23.
He is in Opex.
Exchange rate stays at the current levels.
Opex again.
If the FX stays as it is.
<unk>.
Is today.
We expect to reduce.
And 100 basis points.
Let's say.
So youre able to save 100, thanks Nathan.
More than 100 basis points in 2020.
Opex, if the FX stays as it is.
Three part thanks.
<unk>.
Thanks.
Going back to the operational.
Aspect of your business, you guys have been making a pretty pretty aggressive.
Okay.
Pay to sign up a lot of partnership.
Great.
Ships.
That's what I was looking for thanks.
Our.
Thanks.
In the early phases of ramp.
Operational.
Please speaking.
Business, Brian you guys have been making a pretty pretty aggressive.
In signing.
A lot of partnership.
Impacting your revenues.
Ships those partnerships.
Hi, Amit.
The early phases of ramp.
Does that process get stretched out because those companies are.
To go from.
Our thinking do I really need to.
Meaning.
To drive this business forward or.
And your revenue.
Just kind of slow that down a little bit how do we think about all of these programs because it's been a big piece of the.
Get stretched out because those companies.
The partnerships would ramp into.
Do I really need to.
<unk> overtime.
To drive this business forward or.
It varies.
That down a little bit how do we think about all of these programs because it's been a big piece of the.
<unk>.
The investment thesis.
If you might be right they would look to.
<unk>.
Sure.
While contribution over time.
And to add.
To be more conservative etc.
No.
Sure.
So I would say partnerships that were more of the natural reselling.
Syed.
<unk> partnership you might be right they would look to.
Is that they actually feel an opportunity.
And two.
Their footprint and market share in the customers. So some of those partners I've mentioned for example, <unk>.
Forward towards the <unk>.
Between.
Our system.
And we have many others, especially in the MSP domain.
Actually Phil and opportunity.
We see from them is they can increase their.
<unk> in market share in the customers. So some of those partners I've mentioned for example, <unk>.
Only on the fact that security now as a fully managed service at the very high level.
Speed domain.
Which was dedicated to Opex and Capex.
From them is they can increase their.
But definitely some of them.
They can actually.
<unk> planned to continue to invest in them. They brought us very new very nice logos in Q2.
<unk> is at the very high level.
Yes.
The need for dedicated Opex and Capex.
Yes, the promise.
It depends on the partnership but definitely some of them.
Zane.
Obviously, the Cisco relationship.
Is it an important piece of the puzzle.
Those in Q2.
The Cisco unable to.
It's still early.
Get to serve to ship.
We see promise.
Moving on.
Essentially at 40% of fourth quarter.
Revenues product revenues and backlog.
An important piece of the puzzle and you've had.
Unable to get.
So with those products.
Get.
How do we think about.
Sitting on.
Backlog in Europe .
Or poor quarter Rev.
Revenues product revenues and backlog.
Our <unk> business at this point.
<unk>.
Impede the timing of when they ship your product.
Point <unk> still that reside on top of Cisco hardware lets say the firepower.
Alex your realization of revenues into that account.
Non material QTL business at this point.
However, I think.
In every bed is also good.
With regard to soft still that reside on top of Cisco hardware lets say that firepower.
<unk> is actually pushing Cisco and other pools of hours due.
R R.
<unk>.
Actually in the cloud environment so.
And there is also good.
So it's difficult to be more active.
<unk> supply chain challenges.
<unk> and cloud WAF offering.
<unk> is actually pushing Cisco and other partners of ours do.
It may be.
Who retires in actually in the cloud environment.
<unk>.
<unk>.
I think we can actually time with Dell.
<unk> active.
Still early and we will update you in future calls, but we do have.
<unk>.
Some new programs.
As a result of the lack of.
<unk> and checkpoint.
Two ship may be.
The cloud solutions.
Quantities that we're used to so I think we can actually time will tell.
Still early and we will update you in future calls, but we do have.
<unk> San comes from Kathy Rosner with Barclay.
Going checkpoint that are centered around the cloud solutions.
Kathy Thank you for taking my questions.
I was wondering if you could give any further color on gross margins and what's contributing to the expansion we are seeing there.
<unk> with Barclays.
Okay.
Mentioned that we grew up around 100 basis point to a point of 83, 3%.
If you could give any further color on gross margins and what's contributing to the expansion we're seeing there.
<unk> direct to them.
We mentioned that we grew up around 100 basis point to a point of 83, 3%.
Over the globe.
<unk>.
Some are let's say most of the growth is attributed to the acquisition of security to them.
<unk> and <unk>.
How confident.
Having more scribing et cetera, and Paul.
And alright, especially.
Over the over the globe.
Lynch.
<unk> allow us to get higher gross margin.
Considering the.
<unk>.
<unk> customer.
Hey.
I'm confident.
Your changes.
<unk>.
The pipeline next year, especially considering the macro headwinds.
Persist and.
In my comments I mentioned that we took that into account.
Behavior.
And much as we can at this point.
Sure.
I would like to draw the attention to the growth in our <unk>. So the annual recurring revenue is now getting close to 200 million.
So I've mentioned that we took that into account.
And you obviously gave us confidence.
And at this.
And thirdly, I would say sign of future growth.
The attention to the growth in our ALLL. So the annual recurring revenues now getting close to 200 million.
Growth or even 10%, but let's call it the 7% to 9% Tiger that we were alluding to.
In Italy.
Italy, I would say sign of future growth.
For the year.
<unk>.
Growth points, we were quite consistent in previous quarters around 8%, 9%.
And together with our pipelines today are at record level some of it because of the delays.
In closing, but some of it because we continue to an onsite.
Yes.
On everything together I think.
That is.
That we gave is well balanced with the ALR and deferred even give me nuts.
Today, our record level some of it because of the delays in closing, but some of it because we continue to announced by.
That's it.
On everything together I think the.
Your next question comes from George Notter with Zephyr.
The other and deferred even give me nuts.
<unk> for that so we feel confident about.
Yes, I was looking at the Americas revenue generation it seems like it's.
Sort of topped out a bit the last handful of quarters I guess I'm just wondering.
How you guys are doing there I know hiring has been an issue.
General and any any thoughts on.
<unk> revenue generation it seems like.
On both hiring.
It's Tom.
Topped out a bit the last handful of quarters I guess I'm just wondering.
Sure. So definitely we are looking for North America to grow faster.
Clear.
<unk>.
Any thoughts on.
To lead to.
<unk> contribution growth hiring.
To be so we closed on the hiring but obviously those people are relatively new in the organization you know most of them or three months.
<unk>.
Oster, it's clear.
So they will be ramping.
Really too.
This ramp of personnel and sharper focus on cloud security solution.
The people are relatively new in the organization you know most of them or three months.
Hopefully it's definitely.
So.
Our focus.
<unk> and.
Currently in our.
With this ramp of personnel and sharper focus on cloud security solutions.
How many of those new heads from securities.
Think of two faster growth rates, it's definitely.
So for June 30.
<unk> ended with 1282.
Alright head count number for the company and can you remind me how many of those new heads from security Dan.
Sure.
The security downsides.
So for June 30.
With 1282.
Okay.
Next question comes from Tim Horan with Oppenheimer.
Actually 69 employees came from.
Just a little more color on the slowdown.
<unk>.
Now do you think it's more macro driven or are customers, maybe just trying to figure out how to reengineer.
Our whole Ikea as they move to the cloud or.
From Tim Horan with Oppenheimer.
Or is it I guess those are the three buckets, unless there's something else going.
A little more color on the slowdown.
Think it's more macro driven or are customers, maybe just trying to figure out how to reengineer.
But all of that is.
Year to move to the cloud or.
But.
Or is it being driven.
Specifically like three large deals that we had the North America.
All of them in each one of them in the millions of dollar range.
<unk>.
I know that I can think of as the prime examples of those delays.
But.
As for budget freezes towards the end of the quarter that I think is more macro than anything because we are talking on a very large.
Each one of them in the million dollar range.
Raj.
I know that I can think of as the prime examples of those delays.
And went on.
So budget freezes towards the end of the quarter that I think is more macro than anything because we are talking on a very large.
<unk>.
<unk> successfully.
Before.
The Bill growing company.
Sure.
In the last game, so scalable infrastructure.
<unk>.
Sure.
<unk> look more look on architecture on budgets et cetera.
Pushing of investments tour.
For forecasting this quarter, but.
Words in the.
That's what we've seen in June .
The infrastructure.
<unk>.
Our scrutiny the more look more look on architecture on budgets et cetera.
Right.
By now I think we have a variable for forecasting this quarter, but.
But for the large enterprise the carriers.
The scene.
June .
As for their business.
<unk> recession budgets.
Some of it is heavily impacted by the macro but.
And those.
But so not.
Those companies that we work with the large enterprise the carriers.
Times their decisions are your decision or your revenue.
Goes through business, it's still delayed recession budgets scrutiny of the budget that comes into place in those times.
And on our end I think we were able to navigate it really well we increased inventory Guy mentioned also in his remarks, we were paying more.
So.
Since we were suffering in gross margin.
Supply chain is not only from last quarter, we've seen it.
But in some cases, we do see that they are building a new data center.
<unk> well, we increased inventory Guy mentioned also in his remarks, we were paying more.
They're not taking also our deliverables because they have nothing to do with it without.
Or you were able to supply.
Doctors so there is some.
There's we do see that they are building a new data center.
Globally, but that's already built into our.
In the next six months.
Our forecast et cetera, we're seeing that.
<unk> because they have nothing to do with it without.
Good reason to focusing the agile and on cloud security services.
Because.
Is it frees us from all of those delays and supply chain issue.
As to our.
<unk> guidance forecast et cetera, we're seeing that.
Issues.
I know youre kind of talking about the revenue growth 79%.
Focusing on <unk> and on cloud security services.
<unk>.
Expansion for a few years to make sure that youre well positioned longer term. If we were in a weaker environment in the next 18 months, we expect margins to be.
I know youre kind of talking about the revenue growth sub 9%.
We might do that at least.
<unk> found that sacrifice margin expansion for a few years to make sure that youre well positioned longer term.
And I must tell you that with the <unk>.
<unk> sales growth towards the 7% to nine.
<unk>.
I believe you would see deleveraging the model.
We might do that.
To bring back the growth rates back to our 7% to nine Tiger.
<unk>.
The.
Over the long run I must tell you that with the resumption of sales growth towards the 7% to nine.
There are no further questions at this time Mr. Roy.
So I'm not worried about that we want to bring back the growth rates back to our 7% to nine Tiger.
Ending and have a great.
The leverage will be seen.
Dave.
This concludes today's conference you may now disconnect.
There are no further questions at this time Mr. Ryan.
Hey.
Okay.
Sure.
Yes.
Yeah.
[music].
Yes.
Yeah.
Okay.
Okay.
Okay.