Q3 2022 Veritone Inc Earnings Call
Good afternoon, and welcome to the virtual <unk> third quarter 2022 financial results all participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing star.
One zero on your telephone keypad.
After todays presentation, there will be an opportunity to ask questions.
Ask any question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two please note. This event is being recorded I would now like to turn the conference over to Brian Alger Senior Vice President Investor Relations and capital markets.
Please go ahead.
Thank you and good afternoon.
After the market closed today <unk> issued a press release announcing results for the third quarter ended September 32020 to the press release and other supplemental information is available at the investors section of <unk> website.
Joining us for today's call are both alive and digital twin versions of Baritones CEO chance, Joe Burton President, Brian Shelburne, and CFO , Mike's Metro who will provide prepared remarks, and then open up the call for a live question and answer session.
Please note that certain information discussed on the call today, including certain answers to your questions will include forward looking statements. This includes without limitations statements about our business strategy and future and financial operating performance.
These forward looking statements are subject to risks uncertainties and assumptions that may cause the actual results to differ materially from those stated.
These risks and assumptions are discussed in <unk> SEC filings, including its annual report on Form 10-K.
These forward looking statements are based on assumptions as of today November eight 2022, and baritone undertakes no obligation to revise or update them.
During the call the actual and forecasted financial measures, we will be discussing will be presented on a non-GAAP basis, unless otherwise noted.
Reconciliations of these measures to the corresponding GAAP measures are included in the press release, we issued today.
Finally, I'd like to remind everyone that not only is this call being produced with baritone voice our proprietary synthetic voice solution, but it is also being recorded and will be made available for replay via a link in the investors section of <unk> website at Www Dot <unk> Dot com.
Now I'd like to turn the call over to the digital twin of our co founder and CEO Chad Silbert.
Chad.
Thank you Brian Good afternoon, everyone witness database.
Amit.
Sure.
As Brian noted I am digital twin Chad, we are happy to speak with you today and to provide an update on the progress of our business for the third quarter of 2022 baritone reported revenue of $37 1 million.
Representing year over year growth of 64% on a GAAP basis, and 5% on a pro forma basis.
Over the same period bookings reached another record up nearly 400% year over year and our customer count grew 43% both on a pro forma basis, as Brian and Mike will detail our commercial businesses powered by AI. We're continued to be our foundation, providing the bulk of the revenues and profits for the business.
That said our investments in government and regulated industry solutions broadly continue to find new use cases and grow their respective pipelines.
<unk> remains well capitalized with a robust balance sheet and many growth levers at our disposal for the past several years, we have been making intentional disciplined investments in both the AI wear platform and the use case specific applications and services that leverage. It. Moreover, we intend to continue to leverage our extensive partnerships.
To cost effectively expand our offerings into new markets like healthcare and Fintech, where we don't currently have specific offerings.
For a while now we have argued that artificial intelligence in good times and bad we will continue to thrive the resilience of our commercial business in the third quarter provides ample evidence that our belief is accurate whether it is our advertising services HR solutions or our SaaS offerings for media and entertainment tightened our customers are real.
<unk> the improved ROI that is enabled by baritones enterprise solutions.
Before I turn the call over to Ryan I want to briefly touch on Ryan's elevation to Chief Executive Officer effective January one 2023, and my continued involvement with the company as chairman of the board I am immensely proud of the team we have assembled the technology, we have developed and progress we have made in establishing a world class AI operating.
Looking ahead I have total confidence in Ryan and the stewardship, he will employ and executing baritones long term strategy. We are building an ecosystem to endure and I'm excited to contribute to our next chapter.
Now Brian will discuss the operations of the business in greater detail.
Over to you Ryan.
I appreciate your kind words chat and on behalf of the entire team at baritone I want to thank Chad for his unyielding leadership drive envision over the past seven plus years, the strength of our business and the advancements enabled by AI, where our enduring evidence of your efforts. Thank you.
As today's earnings release indicates I will be assuming the position of Chief Executive Officer. In addition to my duties as President effective as of January one 2023, Chad will remain closely involved with our company in his continuing role as chairman of the board and he will also consult for the company focusing his attention on a eyewear.
Now, let's get into more of the operational details of our third quarter results, which we believe shows the resilient nature of our business now the AI where has been proven at scale.
In the third quarter of 2020 to GAAP revenue grew 64% year over year with strong growth in both software products and services and managed services quarterly new software bookings of $16 $5 million was our third consecutive software bookings record our software customer count grew to 618 up 4% sequentially and 40.
<unk>, 3% year over year on a pro forma basis within our managed services business. We saw strong year over year revenue growth as average gross billings per active customer grew 21% to a record $747000.
Let's start the business review with commercial enterprise Q.
Q3, 2022, commercial enterprise revenues of $36 $2 million increased 67% over the prior year period and accounted for 97% of our business within commercial enterprise on a GAAP basis. Our managed services grew 20% year over year, and our software products and services revenue grew by 145% year over year.
On a pro forma basis, our Q3 2022 software products and services revenues declined five 3% year over year, though on a year to date basis, they are up 10%.
Commercial enterprise customer growth was strong accelerating from the June quarter Panda logic recorded over 70% year over year growth in its customer base, while <unk> as a whole grew its customer base by 43% our final customer count at quarter end was 618 within commercial enterprise, we are rapidly signing up new and <unk>.
Existing customers and partners to leverage baritone voice and our broader synthetic content offerings. Most notable to date is the recent agreement that we announced with stats perform a leading global sports data provider. This Friday during our upcoming analyst day, we will be discussing and demonstrating how the two companies plan to expand the synthetic content market for sports also.
So in the sports Arena baritone recently announced the launch of sport X, which combines our <unk> technology with our extensive expertise and content licensing to create a marketplace for sports federations and leads to improve content distribution and monetization.
Underpinning the considerable customer growth for panel logic are significant and measurable efficiency gains driven through AI. For example, last year over 200, Dominos Pizza franchises began working with us to help recruit and hire new talent within the first five weeks of our engagement, we saw 472% increase in applicant volume and 86%.
<unk> and the actual cost per applicant and an overall reduction in total spend by 19% we have proven that in a volatile hiring market programmatic adoption accelerates and gained market share due to increased efficiencies through automation and reduction in costs by moving away from the old manual expensive talent acquisition processes.
As I mentioned previously our managed services, which leverage our AI capabilities for differentiation recorded 20% year on year growth in the third quarter, while some in the industry have reported macro AD spend challenges. Our managed services group continues to perform well. This is directly attributable to the markets, we serve and a differentiation AI where provides us to deliver.
Substantially superior results to our customers.
Across our entire commercial enterprise group. The common theme is resilience in a challenging economic labor environment. We grew our overall customer base by 43% in a challenged media spend environment, we recorded record average billings and material growth.
Moving onto government and regulated industries or <unk>.
<unk> grew both sequentially and year over year, though revenues in <unk> still account for less than 3% of our total revenues bookings strength in the growing diversity of customers continues to support our belief that our continued investment in this space will yield positive results.
Within <unk>, we currently see our best product fit in brand awareness and our state and local law enforcement agency or.
End markets as last week's press release showed our AI driven contact and redact applications continue to draw more and more <unk> onto the platform, surpassing 20% market penetration in California, we are well on our way with our land and expand strategy and the market.
At the federal level, we continue to prioritize and leverage partners and our go to market strategy, while we know AI, where offers tremendous value and potential to federal customers. The complexity of the procurement process and required services components essentially requires a partner approach. Fortunately baritone has built a first class partner network, including Deloitte Microsoft.
CACI P lighthouse and Booz Allen overall.
Overall, our customer growth record bookings and increasingly diverse revenue base continue to demonstrate that baritones business is not only resilient, but poised for acceleration, we will continue to responsibly invest in growing the business, while also leveraging our partners to expand market opportunities.
Now I would like to hand, the call off to Mike <unk>, our CFO to go through the financial results and guidance in more detail.
Over to you Mike.
Thank you Ryan.
Q3 was a solid quarter with high execution across our business.
Turning to Q3 2022 financial performance Q3 revenue of $37 $2 million was a record third quarter up $14 5 million.
Or 64% from Q3, 2021 software products and services revenue increased $11 8 million.
Our 131% to a Q3 record of $28 million driven by the addition of Panda logic managed services revenue grew $2 $8 million or 20% driven largely by growth in content licensing, which rose 35% year over year. This was driven by the overall increase in digital content.
Usage and in live events coverage as we returned to pre Covid conditions. In addition to growth from our Influencer platform and network in 2022.
On a pro forma basis Q3, 2022 revenue was up 5% year over year driven by the increase in managed services offset by a 5% decline in software products and services.
The pro forma decline in software was in large part driven by Amazon's continued efforts to drive head count savings across their business, which resulted in a decline in revenue from Amazon of 28% year over year offset by an over 100% improvement and non volume hiring or enterprise revenues.
Year over year, we saw net customer growth of over 65% with customers using our HR software on a consolidated basis Amazon represented 31% of our consolidated revenue in Q3 2022 down substantially from 40% in Q3 2021 on a pro forma basis as we continue to reduce the concentration of revs.
<unk> from Amazon and grow our customer base. We also expect our AI to also fluctuate accordingly and.
In Q3, we generated strong software products and services metrics, new bookings were $16 $5 million of 393% year over year on a pro forma basis from Q3 2021 gross revenue retention in the high 90, percentiles ending customers of 618 up 43% year over year.
On pro forma basis, Q3, a <unk> of $170000 down 18% year over year on a pro forma basis from Q3, 2021, or a $208000 driven by a higher mix of new customers and the decline in Amazon revenues.
I would note here that it takes new customers time to ramp to a normalized revenue capacity and excluding Amazon net retention continued to be over 120%.
And managed services advertising gross billings per active customer increased to $747000 up 21% over Q3, 2021. Moreover, we expect to eclipse a new milestone in 2022 generating over $400 million in annual gross billings.
In late Q3, we acquired vision semantics limited for a total consideration of 2.0 million.
Consisting of $1 $7 million in upfront cash and zero point $3 million in deferred cash payments to be made in 2020 for the acquisition will greatly improve the speed and adoption of our video tracking services and capabilities. We expect this acquisition to have less than 1% impact on our consolidated financial results throughout the remainder of 2022.
Two.
Q3, 2022, non-GAAP gross profit reached $30 1 million, improving by $13 $3 million or 79% from Q3 of 2021 gross margins expanded to 81% in Q3 2022, compared with 74% in Q3 2021 benefiting from the entire quarter.
<unk> of Panda logic as previously discussed and as we continue to scale over the next 12 to 24 months, including the full impact of Panda logic. We expect total gross margins to reflect <unk> seasonality, which is typically slowest in the first quarter of the year and improving sequentially throughout the year thereafter and for total gross margins to continue.
To exceed 80% throughout the remainder of 2022.
On a pro forma basis software products and services totaled 56% of revenue in Q3 2022 versus 62% in Q3 2021, driven by the year over year decline in Amazon.
On a pro forma basis Q3, 2022 gross margin was slightly down year over year at 81% as compared to 83% in Q3 2021.
Q3, 2022, non-GAAP net loss was $5 $7 million as compared to non-GAAP net loss of $2 $3 million in Q3 2021, driving this increase were recent growth investments in our operations, namely in hiring of engineering sales and marketing resources to accelerate 2022, and long term revenue growth in <unk>.
<unk> on the corporate side in mid 2022, we deploy new cloud based financial and people systems, Oracle and workday, which will help us scale, our future operations globally, and we have incurred slightly higher G&A costs to support our first full year of Sarbanes Oxley compliance costs.
As a percentage of revenue corporate costs dropped from 21% in Q3, 2021% to 16% in Q3 2022.
On a pro forma basis, the $5 $7 million Q3, non-GAAP net loss compares to a $3 $9 million non-GAAP net profit in Q3, 2021, reflecting lower revenue and margin from Amazon in Q3, 2022, coupled with a higher operating cost base. Our hiring plan for 2022 was frontloaded in the first.
Half of the year, which will also have a heavier impact on forecasted 2020 to bottom line results.
Turning to our balance sheet at September 32022, we held cash and restricted cash of $196 1 million, including approximately $59 $5 million from managed services customers for future payments to vendors.
This compares to $254 $7 million at December 31, 2021, the nine month $58 $7 million net decrease reflects net cash outflows of 34.0 million from acquisition, driven and financing activities, including approximately $14 $4 million cash outflows for <unk> 2021.
Earn out $9 $7 million and restricted stock net settlements and $11 $1 million in cash paid for investments acquisitions and fixed assets, coupled with $24 $6 million in cash flows from operations.
Cash flow from operations of negative $24 6 million reflects the $18 $1 million year to date non-GAAP net loss, coupled with negative working capital changes from operations driven by the seasonal growth and timing of cash in and outflows across our operations.
Working capital will continue to fluctuate depending on the timing and due dates of payments in any given period, our unencumbered cash at the end of Q3 2022 was approximately $137 million, which at today's projected 2020 to burn rate is sufficient to operate the existing business and support growth for the next 10 years plus we.
Ended September 32022, with $36 3 million shares outstanding.
Now I want to provide an overview of our financial guidance for the fourth quarter and full year 2022.
Given the global macroeconomic backdrop, coupled with Amazon's recent hiring slowdown and related actions, we are tightening our previous top and bottom line guidance for the year with that backdrop and the reminder, that pandal logic is significant revenue seasonality with a lowest consumption in the first half of the year and accelerating throughout the second half of the year for the fourth quarter.
2022, we expect revenue to be between $44 million and $46 million for full year 2022, we expect revenue to be between 150 and $152 million representing.
Representing a year over year increase of 30% at the midpoint on a GAAP basis and relatively flat year over year on a pro forma basis. The primary driver of this updated revenue outlook reflects a lowered state of Amazon hiring consumption throughout 2022 and in Q4 2022, we expect our combined software products and services revenue growth to approach 50.
Percent year over year on a GAAP basis full year 2022 guidance includes our recent Q3 acquisition.
We expect Q4, non-GAAP net income to be between three and $4 million with full year non-GAAP net loss to be between 14% and $15 million, depending on the timing and the overall mix of our revenue and implying we're operating towards an approximate breakeven over the second half of 2022. This compares to a non-GAAP net profit of six.
$8 million in 2021.
Before I close we plan to be speaking at the Roth Technology Conference in New York City next week November 15th and 16th the Needham Virtual Tech Conference on November 16, and we will also be presenting at the UBS TMT Conference in New York City on December 5th if you'd be interested in scheduling a one on one that any of these events. Please reach out to Brian or your <unk>.
<unk> sales representative.
Operator, now we would like to open up the call for questions.
We will now begin the question and answer session to ask a question.
Western you May Press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
The first question comes from Patrick Wall Ravens with JMP Securities. Please go ahead.
Oh, great. Thank you Ryan.
Brian Congratulations on the role starting next year.
Thank you Paul.
Overall, a nice bounce back from last quarter.
The question I have is.
When we're when we're looking at the balance sheet and the free cash flow, how how do we think about the debt.
Context of that so I heard the comment about.
And that cash with the 137 for the next 10 years, but within the next 10 years, you got a payback $201 million in convertible notes right.
Love to hear how you talk about how you think about that.
Yes, maybe I'll take that one.
The APAC, yes, so I mean listen when we did the convert.
I mean it was an.
<unk> piece of paper.
As far as going out and grabbing liquidity.
And then we got it for $1, 75% interest, we put $200 million on our balance sheet.
And that was really capital to fuel growth.
Unless we have four years of Optionality on it and a lot can happen even in the year.
So we're still very very bullish about the prospects of growth.
And we're laser focused on profitability in this back half of this year.
Almost breakeven if you look at our guidance, which I'll, what I'll say is conservative.
In Q4.
So we feel really good about it.
The convert price, albeit at 36 and change to get there we feel real good about growth and where we are and what will be in four years.
Okay.
Do you have for do you have to deal with it before it becomes current.
You have to deal with it a little bit before it becomes current but theres a no call on it until.
2026, I believe in November .
So at four for Mike can you all retail 26 or do you feel like you have to deal with it for that.
It just depends.
That project.
And I can't project, the hectic months, where the world will be right.
And again, we feel real good about where we are.
Okay.
Yes.
Yes.
Was there a follow up Mr Wall Ravens.
Oh, I'm sorry, yes.
Thank you very much.
Thank you.
The next question comes from Koji Ikeda from Banc of America Securities.
Please go ahead.
Hey, guys. Thanks for taking my questions Chad, we're going to Miss you Ryan Congrats on the CEO role.
Just wanted to ask a question on pandal logic and.
I know youre not guiding to 2023 and maybe this is a better question for Friday, but I just want to throw it out there as we're building our models and taking everything into consideration, what's going on with the recruiting world and I appreciate the color here on Amazon I mean.
How should we think about Pandora logic revenue I guess call. It over the medium term do you anticipate its growing does it remained flat or does it potentially decline in 2023.
Well I'll speak to it just from I'll call that the business operational side, and then Mike can kind of touch on the financial side, but first and foremost we've seen from our stated number there growth in non Amazon business of 70% growth in number of customers in over 100% and revenues, we expect that trend.
As you continue.
Sure.
Very optimistic about that due to.
Despite the topline potential slowdown in new hiring the in terms of attrition rate in a tight labor market, coupled with the increase in market share of programmatic, which we definitively are market leader in we expect us to continue to gain market share as it relates to legacy manual efforts and Thats, primarily driven by.
Somewhat akin to happen in the display programmatic market through 2010, where again with it despite the slowdown in growth of AD spend you saw a significant increase in the utilization of programmatic primarily because as we stated clearly and we'll be following up with releasing some research data is that our cost.
Of acquiring applicants and significantly lower than the alternative of the human element number one and number two is that actually from macro perspective has reduced significantly the overall cost for companies to hire and fill not just net new growth, but also for attrition.
Again, we still feel very very confident that again, we have the right strategy.
<unk> is a major portion of our business.
Despite.
Significantly decreasing the concentration in which we do expect that positive trend to continue and Amazon is going to have a major.
Impact on our business, one way or the other whether they increase or decrease so Mike you want to add on that a little bit.
Yes, I just want to echo some of the statistics and the revenue non Amazon revenue growth.
Hundred percent year over year customer growth of 70%.
And so we are and we're just at the tip of the spear.
This technology is so great during great times, it's also even better during bad times.
Because the cost.
Ryan mentioned, some statistics that we did.
Domino's in terms of the survey.
Reducing the cost of higher by substantial amount and then increasing the time to hire by established substantial amount.
So there is plenty of room for this to grow.
And so we're continuing to be aggressive on investing it.
And at.
At Walmart in terms of the the saturation of programmatic right, we're still less than 10% market upwards of adoption. So.
Again, a lot of a lot of growth opportunities and a very high ceiling for us to continue to gain market share.
Got it Ryan Mike Super helpful. Just a follow up here thinking that pandal logic I recall during the acquisition time.
You guys presented the business is quite profitable.
And with growth, presumably slowing just a little bit there from the Amazon headwinds.
How should we be thinking about maybe your strategy or insight into how youre thinking about balancing growth and profitability over the medium term given panda was kind of a good lever for you know for the bottom line for you guys.
Well I think in our entirety across the business. We've made a lot of our more material investments into technology really going back to the end of last year.
<unk> for us going forward.
Including panels recent release of <unk> select and a lot of their newer product offerings. So again I think from a from a from a capital investment perspective relative to continue to yield increased growth I think we're in a good position across all of our commercial products in that vein spanning from median entertainment advertising to our HR and talent acquisition side.
So from a cost basis relative to the growth opportunity I think we're well positioned.
In terms of sales velocity again touching on the points a lot of the efforts to to reach those new customers to continue to drive adoption of non Amazon business.
Have been in place and Terry Baker, and the management team on our on our HR side and <unk> are doing a great job of executing against that plan.
Again as we sit here today, we feel that we have the right strategy the right team and the right investment allocations to to continue to grow.
While remaining very fiscally responsible.
Got it yes, Brian Thanks for taking the questions I'm sorry go ahead, I'll say, yes, and then.
Just to be clear, it's still incredibly profitable.
So.
Let's not forget that.
Got it thanks, Mike Thanks, Brian Thanks for taking my questions.
Thank you.
The next question comes from Darren <unk>.
With Roth Capital Partners. Please go ahead.
Hey, guys. Thanks for taking my questions Chad Great to work with you and Brian Congrats on the.
<unk>.
On the new role.
Just two if I may the sort of $10 million sequential decline in revenue, maybe Mike can you.
You duplicate that other managed service versus the software kind of assumptions underlying that and then as we get into it tighter macro economic environment.
And people are unfortunately laid off like it seems like AI as a tool just becomes more pronounced can you talk about any opportunities that.
Maybe we're not talking about right now is to kind of become more front and center as we get into the kind of tighter economic times. Thanks.
Hey, Darrin I missed the first part you said there was a $10 million sequential decline.
I was talking about year over year I believe.
Oh year over year, yes.
The biggest driver and you are talking on a pro forma basis right.
Correct.
Yes.
The biggest drivers Amazon I mean listen Amazon was 40% of our revenue on a pro forma basis in Q3 last year.
And this.
This year.
It's gone down substantially.
And so.
Yes.
And maybe.
Im missing the $10 million decline sequentially are you talking about Q4, specifically in terms of.
Q4, yes, it's Amazon 100%.
The rest of the business is pretty.
Stable I mean listen.
We are experiencing some of the macroeconomic impact and I'll, let Bryan touch on this but it's not to the extent that others are.
And there's very good reasons for it and as we mentioned before.
Our hiring platform is growing substantially.
Even during these odd economic times, and we expect it to continue to grow.
But right I don't know if you want to touch on.
Yes.
Yes, yes.
Similar vein as we've presented our advertising related businesses in the past.
Again, we're performance based vehicle, we have been so again as youre seeing major pullbacks in some areas that are primarily driven by brand and display based advertising.
US being really the market leader and frankly, the faster emerging opportunities of podcasting and Influencer marketing and the fact that we're all performance based.
It is a great stabilizing factor.
As you've seen by.
Our increase in average spend per customer it's materially up even in the last quarter. So again, we're in a great position. This is somewhat similar to what happened during COVID-19 when the major pullback happened our business did not fall off the table. It was relatively stable when a lot of major budgets were being touch so again on advertising fronts.
I feel that with technology and diagnose diversification customer diversification and the fact that we're performance based in I'd say faster growing areas of the media market, specifically creator economy and podcast in we're in a great position on that front.
As we touched on several times on the <unk> side.
The execution of that business in terms of new customer acquisition is incredible.
Ultimately for me look at mid and longer term that is the most important thing are we acquiring customers our customers are we keeping customers.
And again all of those net new customers that brand new net new dollars candidly. So again, what we're seeing is we are not necessarily trying to isolate that as just an Amazon pullback, but that does represent the material one of I'll say that.
The greater areas of our performance is again, the major swing that the Amazon Amazon is driving so independent of that again, where we think we've done an excellent job and we continue to be very bullish about our prospects.
Helpful. Thank you.
Again, if you have a question. Please press Star then one the next question comes from Brad Reback with Stifel. Please go ahead.
Great. Thanks, very much. So obviously the guide for <unk> is revenue down fairly substantially year over year because of Amazon can you help us sort of think about what types of things need to happen in 'twenty. Three is it Amazon returning to growth or are there other levers that you can pull to get you back to your 20%.
Stated long term growth rate.
Well I think we have a lot yes.
Great shots on goal I mean, micron touch on it and we've touched on a few of them already but a lot of the investments that we've been making really going back to late 2020 through 2021 and most of this year, we're seeing the fruits of those efforts.
And all the new product offerings of which we touched on sport.
Which again is in full production right now and growing all of our new voice technologies. We've made some recent announcement with SaaS perform.
We're expecting great things and hopefully we will be able to talk about the exciting growth opportunities in voice and synthetic media. So again theres a lot of levers that we're pretty bullish about.
But again, we do expect.
Our managed services advertising businesses to continue to grow and we continue to look for them to still stay differentiated end market and market leaders in their respected media focuses.
And we do expect our continued growth in non Amazon business for <unk>. So I think we have a multitude of levers again that are not overly capital intensive and that I think again with fiscal discipline.
I think we're able to work to achieve our goals, while being very very prudent on our bottom line Mike.
Mike.
Yes, I mean, I think Bryan hit already.
Pretty much everything.
Yes, there is a ton of opportunity.
Some of the partnerships.
Deals we've recently disclosed.
<unk> disclosed.
So pay attention to those because theyre going to have.
Potentially big impacts for Us next year.
Yes.
And just very much.
Yes.
Thank you.
Excuse me was there a follow up.
Mr Reebok.
No no I'm all set.
Thank you.
This concludes our question and answer session I would like to turn the conference back over to Chad Steel Bergh, Chairman and CEO of Verifone for any closing remarks.
Yeah.
Thank you operator.
We're pleased with the overall execution of our business and the increasing growth opportunities. We are building as we wrap up 2022 and head into 2023, our confidence in AI, where is backed by our strong customer metrics.
<unk> steadfast in our strategy.
As I pass the torch to Ryan I am excited by the opportunity at hand and to continue supporting the verifone team, albeit in a different capacity.
Brian I started baritone with a shared vision he brings years of experience and a foundation and what has differentiated baritone in it and in emerging marketplace. Further Brian is focused on <unk> next chapter nodes, where we came from and what we have built and most importantly has a clear vision for our future.
Forward to everyone at the very time team for their intrepid spirit diverse expertise and.
A collaborative partnership.
For the past decade.
Together, we will continue this rewarding mission.
I would be remiss, if I didn't mentioned that Tonight is an important night for our country as we come together to elect our leaders. If you have not yet done so I highly encourage all of you to exercise your constitutional right to vote.
Finally, and most importantly, I would like to take a moment to recognize the contribution of Louis Gracia deal My friend mentor and longtime board member, who sadly passed on October 17.
<unk> brought a tireless work ethic integrity and immense leadership to our board.
He is deeply missed Lewis.
Lewis is focused on living in the present and the idea that tackling today is the best way to succeed in the future. This was captured in its famous IDIOM TNT, which is which you learn from his father it stood for today not tomorrow we.
We have taken Louis' lessons and examples of heart as we start our next phase.
Today's CEO announcement is bittersweet.
But one I know Louis would have approved of Orion is the ideal leader for baritone today and the infinite set of Tomorrows ahead will reap the benefits of this decision.
Our deepest condolences to Louis' family and loved ones, but rest assured his legacy lives on.
Thank you for joining us we wish you all a happy and healthy holiday season God bless.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.
Yes.
[music].
Yes.
Yeah.