Q2 2022 Jfrog Ltd Earnings Call
SAP solutions to expand our global binary distribution and reduced the infrastructure cost while simplifying the security policies of the software supply chain <unk> platform will support the customer's global scale provide Dev ops as a service to the thousands of developers and protect millions of cars.
<unk>.
In addition, we see robust cloud growth among our platform users for example, the second major deal. This quarter came from one of the world's largest financial institutions that migrated part of its IP assets to <unk> cloud grew the adoption and increase their annual spend by 67.
Percent.
It is this financial institutions transition towards a multi cloud environment in the upcoming years. The hybrid deployment model will provide standardization across both cloud and self managed solution, allowing for integration and collaboration across development and releasing.
As a longstanding customer of this company has grown from an initial deployment of RT factory and expanded to security and distribution through the use of the <unk> platform.
Now to our security pillar, our investments in security keeps bearing fruit as we see an accelerating trend of companies turning to Jay for looking for robust way to secure the software supply chain.
In today's world more and more heck of our targeting developers to gain access to an organization.
Companies are realizing that securing binaries as critical acknowledging that using point solution without the holistic security approach continues to expose them to external vulnerability.
For example, a large global technology hardware manufacturer turned to <unk> in Q2 to modernize its software supply chain security processes and.
In a competitive displacement <unk> uniquely provides this new customers with highly available solution software distribution and more.
Understanding they also needed to scale security continuously with over 1000 developers.
<unk>, a fully integrated solution to provide scanning and remediation path across the <unk> pipeline.
Now as a full platform customer that enjoys the integrated power of the factory in <unk>. This company will be able to more securely automated software delivery all the way to production into cloud and on premises.
The continued pattern of full platform adoption also aligned with the market demand.
In Q2, one of the world's largest integration and API platform migrated from <unk> to <unk> platform.
As these customers attempted to scale with their existing setup. They required a cloud based <unk> platform that offers an extensive body of cloud native support to support to speed up the internal development, while protecting them against the availabilities.
They chose <unk> platform to support the need for a highly available or bust universal software package.
<unk> and distribution mechanism to trust releases, all the way to the edge.
Finally onto the next Gen Dev ops announcements, we have made in the Iot and connected devices business.
<unk> keep innovating and addressing Dev ops big challenges, we introduced the world with the first binary repository that became the single source of record in the industry. We expanded our solution by building a setup composition analysis to that became the standup and how software supply chain is being protected.
And now we are addressing the next painful development team, which is updating software on the edge last may at our user conference Swamp up we announced and demonstrated schafer connect a product combining jape of Dev ops platform capabilities with the technology of ups with our company.
We acquired in Q3 of last year.
We are already seeing early demand for the product in the enterprise and how it will drive broad platform expansion.
No. Other company provides a complete end to end <unk> security flow all the way through connected devices today over the air update solutions.
Made by companies forced to build their own technology that doesn't connect the ICD flow, making them insecure inflow.
The market of software updates on devices takes Dev ops beyond not just the data centers in the cloud, but all the way to the edge. We believe J for connect is the next logical step in fulfilling the liquid softer vision and it is now offered in the G. Eight version.
That swap up we were proud to make additional announcements across our three core areas Dev App security and Iot.
And our Corp. Dev ops area, we were honored to share the swamp of stage with the <unk> of the Swift projects with Apple, which is the new standouts for iOS developers Swift package management is moving from a crosscut centric approach to a binary centric approach and the team has worked closely with <unk>.
<unk> to develop the first enterprise grade software package support for Swift and Jay programmatic factory.
Building on our solid foundation and <unk>, We also announced new advanced capabilities for end to end software supply chain security.
This includes detecting malicious software packages.
Scanning the discover secrets, such as API keys, and passwords and infrastructure is called security scanning to detect cloud security Mis configuration before we set up on the cloud.
This was the most consequential set of security capabilities ever announced by April .
These new capabilities will be offered to customers as an additional package on top of our existing subscriptions beginning in late Q3.
When we acquired <unk> last year, we committed to delivering integration in 2022.
The development and introduction of our advanced security package demonstrate the execution of that promise.
Finally, we announced integrations with service now in Microsoft teams that enhanced <unk> offerings across marketplace and make <unk> solution to integrate it to fail.
Both Microsoft and service now products need access to <unk> about the factory as the repository that stores all binaries and enables full automation of the Dev ops pipeline and two X ray, which secures them at all stages.
Jay for customers. This integration will create a dev ops environment from developers all the way to one time with best of breed products that coexist and avoids vendor lock in.
Before we turn to our financial review I would like to address the macroeconomic changes the world is now experiencing.
Clinton and the global economy requires companies to look at their business sufficiency product diversity cash management and path to profitability.
Our renewal rates in both on Prem and cloud have remained robust and continued to perform very well in.
In addition, our cloud revenues continued to see positive usage trends.
However, during the second quarter, we started seeing elongated sales cycles for large new business deals compared to trends we've seen in the past.
We would also note that Asia Pacific, which is currently our smallest geographic region in terms of revenues has seen slower levels of Dev ops adoption relative to our prior expectation.
Given our customers' view of <unk> platform is a critical component to modernize their software supply chain, we anticipate only a small potential impact on overall customer usage.
We acknowledge and have accounted for the current macroeconomic headwinds emerging globally in our guidance.
We are confident that <unk> is well positioned to succeed we believe <unk> continues to grow long term revenue at 30% or greater even as overall global it budget may be pressured during the second half of the year.
With that I would like to turn the call over to our CFO Jacob Shulman, who will provide an in depth recap of our quarterly results and update you on our outlook for both Q3 and full year 2022 Jacob.
Thank you Swamy and good afternoon, everyone. During the second quarter total revenues were 67 8 million.
Up 39% year over year momentum in our cloud business continued with revenues of $19 2 million.
Up 6% to 8% year over year, driven by increased levels of customer usage and continued migration of customers from self managed to SaaS.
In the prior year's quarter, we get stated our cloud growth hit bottom.
In the fourth quarter sales, we have seen continued acceleration and customer adoption of our cloud solutions and <unk> platform delivered on our commitment to the market.
While we are pleased to see this continued momentum. However, we would like to remind you that our cloud business is subject to variability. We continue to believe that the baseline growth rate for our cloud business is a mid 50% range with potential upside from increased customer usage as we saw in the first half.
Of 2022.
Sales managed revenues often called <unk>.
$48 $6 million.
Up 31% year over year.
Our on Prem business continues to provide consistent growth on a year over year basis, but the level of growth has recently slowed as the majority of new customers continue to lend on the cloud and the trend of migration to cloud from the on Prem and Ed and hybrid solutions has accelerated.
Our success in Q2 demonstrate the value large enterprises <unk> hybrid deployments, we continue to expect a portion of new customers. We will continue to learn with our on Prem solutions first, but we recognized migration and new labs have been transitioning towards the cloud in recent quarters.
Net orderly fashion for the four trailing quarters was 132% in line with our prior commentary.
As of the quarter and look at 647 customers with <unk> of over $100000 up from 599 customers as of March 31 2022.
And up 56% from 415 customers at the end of the second quarter of 2021.
In addition, we grew the number of over $1 million of IRR customers again in the quarter added one in this quarter equaling to a total of 17 up 42% year over year.
As we discussed in the past adoption of the full platform is a key factor in the increase in size of our customers.
Q2 of 2020% to 36% of total revenue came from enterprise class customers.
Up from 32% in Q2 of 2021.
Now, let's review the income statement in more details.
Gross profit in the quarter was $56 8 million.
Representing a gross margin of 83, 7% compared to 83, 4% in the year ago period.
We expect gross margins to remain between 83 and 84% during the second half.
And trend toward 80% over the long term as cloud revenues become a greater portion of software areas.
Operating expenses for the second quarter were $58 8 million or 87% of revenues.
Up from $39 $6 million or 81% of revenues in the year ago period.
As we noted the second quarter will be the low point of profitability.
We enacted merit increases for employees, which caused a step up in spend in this quarter.
We continue to invest strategically within R&D and build out our strategic sales and channel relationships.
non-GAAP operating loss in Q2 was $2 million or.
While a negative 3% operating margin compared to an operating income of $1 million or 2% operating margin in the year ago period.
non-GAAP net loss in the quarter was $2 2 million or a loss per share of <unk> <unk> based on approximately 99 million weighted average shares outstanding.
Turning to the balance sheet and cash flow, we ended the quarter with $432 million in cash and short term investments.
Up from $427 7 million as of March 31, 2022.
Cash flow from operations was $4 million in the quarter.
Taken into consideration Capex free cash flow was $3 million.
We will continue to remain free cash flow positive and have been so in every quarter since becoming a publicly traded company.
We remain committed to accelerating our free cash flow margin towards our long term target of 30%.
Before we turn certainties guidance I wanted to ask as long as comments on our view about the potential impact of global macroeconomic headwinds.
Despite the macroeconomic headwinds we are confident that the business will grow 30% or greater this year and beyond however, as Shlomi mentioned, we do acknowledge the changes in some geographies and slowdown in enterprise new deals approval cycle and delivered financially prudent to take additional levels of <unk>.
As a precautionary measure to reflect the macro impact.
We also continue to be committed to our goal will be breakeven for the fiscal year 2022.
Therefore in order to stay aligned with our guidance, we will have accelerated initiatives to improve our operational.
Efficiencies.
For Q3, we expect revenues to be between $75 million to.
To $71 5 million.
With non-GAAP operating profit between negative <unk> million to positive <unk> million and non-GAAP earnings per diluted share of negative negative <unk>.
Two positive one.
Assuming a share count of approximately 106 million shares.
For the full year 2022, we are slightly increasing our revenue guidance to the range between $278 5 million.
And $285 million non-GAAP operating income is expected to be breakeven between negative $1 million to positive $1 million.
And non-GAAP earnings per diluted share of negative <unk>.
The positive <unk>.
Assuming a share count of approximately 107 million shares now.
Now, let me turn the call back to Shlomi for some closing remarks before we take your questions. So let me.
Thank you Jacob and happy birthday My friends.
And thank you my team <unk> employees.
Steadfast dedication and high standouts Youll passion leads to this success.
We saw that our strategic investment platform expansion, and then to EMS Dev ops coverage in line with a growing market demand.
Quarter numbers show that <unk> is positioned well to keep the growth momentum while staying in efficient business financially.
I want to thank you all for your attendance today made the frog be with you and now we'll take your questions operator.
Thank you again, ladies and gentlemen, if you'd like to ask a question. Please press star one one when you touched on telephone again to ask a question. Please press star one line.
Our first question comes from Sandeep <unk> of Morgan Stanley . Your line is open.
Okay.
Thank you so much for taking the call.
And congrats on a solid Q2.
I guess I'm going to start the conversation around the confidence for sustaining 30% growth really appreciated the sort of thinking on the commentary on.
What youre seeing in the macro and some of the longer gaining sales cycles, but.
If we break it down into the drivers for 30% growth what gives you that confidence that in a potentially tougher budget environment, we will continue to sustain that.
That level of growth.
And then James Thank you for your question. Thank.
Thank you for joining yesterday due to slow me.
Regarding <unk>.
The macro economy.
We are seeing decent industry, we are seeing actually an increase.
<unk> all in cloud solution.
More usage and dissolve coming from new customers and existing customers. So the trends of the cloud is going on.
Second quarter of 2021.
What we also see an observing.
Some kind of.
Slowdown on lifecycle big deal approval.
Essentially.
When it comes to major big deals.
And.
Low down on.
Some of the regions.
We wanted to take some conservative approach with our guidance and these are the observations as we can.
I would add to that.
First of all we believe there is a lot of them.
Our estimate.
Yes.
Our expansion rates continue to be very attractive.
And we see lots of opportunities in our existing customers.
Some of them, we continue to be mission critical so in our discussions with the customers and how they flatten their future deployments of <unk>, we're seeing a lot of opportunity for us to expand and maintained its very meaningful.
Yeah.
That's fair that's very helpful and.
Birthday, Chico's as well hopefully get a chance to do something earnings somebody else on earnings calls.
Next go around.
My follow up question Shlomi for you is.
As the market is moving more and more.
We call this as sort of a Dev ops category.
What are sort of the patterns that you're seeing from customers. How are they approaching the cloud decision because you guys own a couple of important pieces of the cycle Theres other parts of.
The software early cycle that.
Maybe using other vendors and so when customers say, okay I'm moving to the cloud are they thinking about doing this in a sort of different approach. They did it on premise, meaning in terms of consolidating the number of vendors or are they going with the best of breed approach in your conversation with customers how are they approaching the cloud architecture decision for.
For for this category.
Yes, very good question and.
Im sure that all the Dev ops for Baidu.
Good question, what we see in the market is split between three different categories first of all most of the new lenders on staff into the cloud.
This is where the new industries going to less on Prem.
New.
New customers.
What we see in the enterprise, especially with the expansion of our customers is two movements a.
<unk> to a hybrid environment, nobody just switching on and switching off.
On premise solution, so a hybrid environment give them at the time to migrate assets one by the other by region, all Viking and the third.
Category.
Those that are looking for a multi cloud solution and then they will start with one cloud migration and been duplicated duplicated to multi cloud environments.
Regional environment this will be more fulfillment of the strategy of moving to the cloud.
On all three categories tangent, what we see is that migration to the cloud.
Not an easy move, especially with Joy of Berkshire is the heavy lifting and I'm very happy to see the jabil can provide them with its long runway to take it.
Understood. Thank you so much for the color I appreciate it.
Yeah.
Thank you.
Ladies and gentlemen ask a question. Please press Star then one on you touched on telephone again to ask a question. Please press star one way.
Our next question comes from Brad Reback Stifel. Mr. <unk>. Your line is open.
Okay.
Can you hear me.
Yes, we're going here.
Great.
A couple of quick questions.
So let me as a customer migrates from on Prem to the cloud can you give us a sense of the economic uplift you get from that.
So migration to <unk>.
Cloud, Brad usually comes with <unk>.
And what we see in the market, it's mainly come from basic data transfer.
One of the consumption unit measures, so motivator pumps or in the cloud more binary movement into cloud between regions between different deployment.
The second thing that.
We have seen is that when you move your assets to the cloud and you save on head count that you used to employed you know Jed J targeted service Dev Ops service you invest more in the asset and making sure that it's getting closer to your developer. So what we are seeing also reported into screening.
The ALR goals is also because of the migration from a lower subscription to the port platform in the cloud.
And I would estimate that Brad.
Many times when customers transition to cloud. They also adds additional capabilities pick up and maybe did not have sufficient more in house.
You bet.
<unk> platform.
So when we compare this migration, we do see a range of up sell somewhere in the range between 20% to 80% of it really depends on the <unk>.
Customer use case for example, one of the largest deals that we call. This quarter, we saw upsell of these large fab 67%.
One on capital.
That's that's great and then Jacob for you your comment on efficiencies is that.
Okay.
Existing spend or does it also encompass slowing down hiring in the back half of the year. Thanks very much.
His breath.
You broke up a bit organically repeat the question.
Sure I hope you can hear sorry, I'm in a tough spot.
Comment on efficiencies is that just slowing existing spend already or is it also a function of slowing hiring in the back half of the year.
Yes, we will carefully review.
Hiring in strategic areas, so and we obviously will continue to NCR.
In other areas, such as cloud and other projects.
Headcount is also strong.
<unk>.
That's great thanks very much.
Thank you.
Our next question comes from Mike <unk> of Needham <unk> Company. Your line is open.
Thanks for taking the questions here and all the color I did want to just expand on that last point. When we were talking about those efficiencies that you guys had previously discussed.
You help us just by elaborating where are those efficiencies coming from and have those been put in place at this point or is that still to come.
Okay.
In addition to.
Carefully review.
The additional efficiencies will be a review of our cloud deficiencies.
Many of the initiatives to improve our important ambition and Steve have already been in place and we have seen our gross margins on our cloud.
Thats improving quarter to quarter.
Still a lot of our own or are.
Continuing to add business, what we intend to do we're also looking at different projects and we will continue with highest ROI projects.
And.
We're going to carefully.
Projects, maybe it needs to be postponed.
Or even stop.
And sorry, just to further elaborate on that like if we're talking about the initiatives to improve cloud as an example like is that just.
You.
Even better rates just as you guys continue to build scale and volume or is it you're optimizing your own internal infrastructure like can you can you provide some more color.
Some of it is optimizing the existing infrastructure at some point it may be re architecture and some of the.
Infrastructure engineering significant deficiencies.
International.
I will then.
That's fine.
When we when we did the efficiency, obviously, we are focusing on to <unk>.
Elements one.
Is the growth of the company is our commitment to end up be breakeven.
So.
Our head count goals is something that we review.
Our investment in our strategic feature and differentiate those we create in the market is another thing, but also the relationship with their vessels.
Just like any other companies.
Opening up every every contact and see if we can optimize.
That's just.
Just like any other companies.
Opening up every every contract and see if we can optimize it.
That's very helpful. I really appreciate the color there and if I could just squeeze one more in when you guys are talking about the I guess elongated sales cycles in the current macro I totally appreciate some.
Some of the challenges there that we've definitely heard from other companies we speak with.
Can you help us think about.
Or is there a difference in those cycles. When you look at North America, or the U S versus other international markets.
Or even.
Between the expansion that youre seeing with existing customers versus landing that new logo. It can you help parse that out for us.
Yes, Mike.
Great question listen first of all I have to meet.
I'm excited to see those very big deals coming forward, our direction Singh, our strategic themes going each quarter after quarter.
No.
To be honest with you.
Deals every every quarter if we break the henkel is also something that we learned about the cycles of approval of this.
Seven digit deal.
However, what we see on the mat usage on domestic expansion on the new customers.
We see that if you land.
With major deal, let's say of platform adoption and more it take biopsy level.
This is new to <unk>.
The domain.
The expansion.
With customers. This is split between two eight if you are moving to a new strategy lets say that youre implementing a hybrid environment and you are not just now renewing more and thinking more beyond <unk>, but you'll also subscribing to the cloud and it requires also.
Technology C level approval and so on so overall on big deals.
We see a longer cycle.
On the expansion and the new business, we don't see that impact on the smaller piece.
Regarding the geopolitical.
Question, you have what we see in EMEA.
It's very similar to what we see in North America.
We don't see any any kind of headwinds coming from the geopolitical situation in Ukraine actually EMEA. Our response to the economy changes ethanol America as I mentioned before and in APAC, we see that the adoption of <unk>.
Especially in the enterprise, especially migration to the cloud is taking longer than what we expected at the beginning of the year all late last year.
But it's been happening just a different cycle.
It has to do with the Dev ops and technology adoption and migration.
That was all very very helpful. I really appreciate the color Shlomi and ill pass while my happy birthday to you Jacob as well. Thank you guys.
Thank you Mike.
Thank you our next question comes from.
Jason Adler I blame Blair your line is open.
Thank you.
Jacob My daughter's birthday today too so you're in good company just 'twenty one so she can drink legally.
Yes.
Thanks.
I wanted to ask you about the security package the event security package they announced.
Maybe just elaborate a little bit on that and how it's.
How it's going to be price.
Subscriptions, I sure, which tiers it will be in and maybe what kind of uplift do you think you could get from the advanced security packages.
Yes, Jason this is <unk> I'll take this question.
The security and what we call the advanced security package will come as mentioned on top of.
On top of the subscriptions that we offer so Bob this is Bob.
The foods that the integration of video technology BT team with the <unk>.
Created in the past year, if you remember we spoke about our strategic investments in security.
And what value can we bring to the world of software supply chain protection.
The binary people.
This is very unique to the market.
And we see a growing trend of hackers that are coming up so developers when hackers are coming on after developers you need different capabilities and this is the new package that we're releasing to the market we shared it in the swap.
Our customers and prospects.
Blowing by it.
We see the interest coming in the market.
Yes.
We've been focused and add to add the fact that we currently have one of the largest research team. The inflammation that we have about what impact already installing in everybody's binary it's something that Jay will continue as a holistic solution now that sentence double click on the holistic solution.
Security is great. So a lot of security companies in the market a.
A lot of them coming from Israel as well.
But when you give it together with a depository with the distribution capabilities. This acuity is on Sterling. So.
We're expecting to see visitation.
Coming as expansion in our portfolio and also.
Offering us opportunities in the market.
As we put our security capabilities.
I.
I won't add to that Jason that this package will be available to customers in late Q3. So we'll know more about the contribution AUM will abate in Q4 and.
And we'll take it.
We'll know more once.
The packages on the market.
Michael available.
As the better program will be available commercially.
Okay. So it will be included in obviously in enterprise plus is it going to be in pro and enterprise as an option or how is how is that going to work from a tier standpoint.
Is going to be included in our enterprise ex enterprise, plus and beyond frame and before that it's going to be available cloud.
Enterprise and enterprise customers.
Enterprise Jackson Enterprise plus okay.
Thank you very much good luck.
Thank you.
Thank you again, ladies and gentlemen, I'd like to ask a question. Please press star one one on your touch tone telephone.
Our next question comes from lowering Lula Bank.
Bank of America. Your line is open.
Hi, This is Lori answer Cody.
So just a quick question on N R. R.
You expanded one point in the quarter can you comment on what is the main driver for that also.
Sure.
Fish and wildlife and also tier upgrades.
Yes, I will take that first of all I had.
The first portion of your question, maybe we contribute.
On your second question so.
The expansion of our net our adventure and comes primarily from expansion of our cloud customers. We did see acceleration of our cloud customer growth.
Sure.
Driven by <unk>.
Patients with our platform and also increased usage and that was the maintenance EBITDA to date expansion of overall net dollar retention rate.
And I didn't catch the second portion of the big questions. So I would appreciate that.
Yeah, just wondering on the usage, how much is that from existing products or the same tier emerges.
Customer absolutely.
A different tier.
Yes.
We did see increase in platform adoption in the cloud.
If it comes from.
Upsell of the cloud customers.
Migration from.
Enterprise class customers.
<unk> brand to the cloud I don't have the exact numbers, but our overall our enterprise revenue.
Revenue continued to grow significantly today represents 36% in the prior quarter.
Yes.
Yeah, Thanks for the color.
And then just a follow up on the previous talking about the longer it sounds cycle has that impact.
Lending as well.
Well it does it just a longer cycle.
A big deal.
Okay, great. Thank you.
Thank you.
Our next question comes from Michael Tourette.
Your line is open.
Mr. <unk> your line is open.
Hi, This is Billy on for Michael Thanks for taking the question.
I just wanted to ask how you guys are thinking about R&D investment dollars for the year ahead are you more focused on the product roadmap and new products or more focused on enhancing the current platform offerings with integrations enhanced capabilities et cetera.
Yes.
Yes.
Several areas of focus for us first of all.
Security is area of focus for US and then we know that the significant effort.
As the investment again.
The vast majority package into the market.
Second therefore advancing.
<unk>.
Area.
We launched camera and that product and we see a lot of demand this product still needs to be scaled to the level of the platform additional features.
The second major area of investment.
And third area for investment.
Making our cloud.
Verification is robust business. So those are the three major areas of investment obviously.
Hey.
Main revenue today and will also.
Very rich roadmap for improvement.
And then the additional features apart as well.
Great. Thanks for taking the question.
Thank you. Our next question comes from Rob Owens.
Your line is open.
The more on the security side of things with everyone's talking about a broader shifting left just wondering if theres an opportunity to consolidate across a lot of these security capabilities and just what youre seeing in the market right now.
Yes, well the shifting that is seasonal.
The trend.
But what we are focusing on is not just protecting the developer, but protecting the software supply chain. It comes from the developer.
And then ends up in production and in fact, the one asset that is.
Uniquely aligned on all stages of the binary so since we are installing it and hosting it for you. We can provide you a holistic solution for diesel stages in terms of security now shifting left is important because the majority of our users are.
Developers themselves. So we want to provide them with the analytics solution. We also have to ship towards the direction.
So all kind of static analysis that the markets have enough solution, but it will be included in our submission.
Type of Opex things, the development environment protecting data and Kuwait in the binaries.
<unk> from outside the organization will be included but we are focusing on the binary 360 lifecycle.
And protected all the way from the left to the right all the way through the production environment.
Great and there's been a lot of news flow about larger companies.
Lowering the number of new developers are going to hire in this environment. So just curious given that dynamic do you think you start to see that play out in deal sizes or on the other hand does this really afford an opportunity.
Given probably a more normalized pace of hiring moving forward for you to consolidate the opportunity around a lot of these fragmented categories. Thanks.
Yes.
And we.
We see that most of the value that we provide to the market comes in the enterprise level and more specifically.
As the development environment as being key cloud and on brand by the way.
So.
The reason for that is that when you start to have a bigger themes that need to collaborate need to automate it to distribute to multiple locations and security also need to be more efficient in all of this environment. This is where Jacob China, mainly because of the binary flows so.
I know that it would be super appealing and attractive for developers in small development shop.
Hoping with the enterprise and the Enterprise X.
And we will take it from there see observe and report to you how the adoption.
Right now.
Great. Thank you very much.
Thank you I'm showing no further questions at this time I'd like to turn the call back over to Shlomi Bernheim for any closing remarks.
Yeah.
Like to thank you for joining us today. Thank.
Thank you for your time.
And.
May the probability.
Thank you ladies and gentlemen, this does conclude today's conference. Thank you all for participating you may now disconnect have a great day.
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