Q3 2022 Sharecare Inc Earnings Call
Okay.
Good day, everyone and welcome to the share care third quarter, 2022 earnings call and webcast.
All participants are in a listen only mode.
Need assistance, please signal conference specialist by pressing the star key followed by zero.
After todays presentation, there will be an opportunity to ask questions. Please also note today's event is being recorded.
On today's call, we have Mr. Jeff Arnold Chairman and CEO , Mr. Justin Ferraro, President and Chief Financial Officer, as well as Mr. Joffrey Muhammad Chief operating officer, who will join for the question and answer session.
Before we begin we would like to remind you that certain statements made during this call will be forward looking statements within the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act of 1995, which includes statements regarding potential strategic reviews and our guidance.
These forward looking statements are subject to various risks and uncertainties and reflect our current expectations based on our beliefs assumptions and information currently available to us.
Although we believe these expectations are reasonable we undertake no obligation to revise any statements to reflect changes that will occur after this call.
Descriptions of some of the factors that could cause actual results to differ materially from these forward looking statements are discussed in more detail in our filings with the SEC, including the risk factors section of our Form 10-K for the year ended December 31st 2021.
In addition, please note that the company will be discussing certain non-GAAP financial measures that we believe are important in evaluating performance.
Details on the relationship between these non-GAAP measures to the most comparable GAAP measures and reconciliation of historical non-GAAP financial measures can be found in the press release that is posted on the company's website.
Yeah.
I would now like to hand, the conference call over to Mr. Jeff Arnold Jeff. Please go ahead.
Thank you all for joining us this morning.
For the third quarter 2022, we delivered revenue of $114 6 million and adjusted EBITDA of $7 2 million, reflecting our continued momentum across the business during the quarter, we executed on our strategy as evidenced by signing a multiyear strategic agreement with Carolina, The health care service subsidiary or.
We're gonna tell expanding our EBITDA margin.
Reducing our cash burn and tracking to hit our core Kpis up 12 million eligible lives in 6 million alcohol records processed by year end.
We've previously discussed our plans to support growth through expansion of our sales team and channel partnerships I'm pleased to report that we've increased our pipeline by 300% on a year over year basis, and nearly doubled our rfps, which doesn't account for the upsell opportunities with existing clients across our installed base.
Our third quarter performance and the strength of our pipeline across all three channels gives us confidence for 2023 and beyond with $203 million on our balance sheet. We are very secure financially and well positioned to fund our continued growth.
In the enterprise channel, we continued to focus on delivering value to our customers through wellbeing engagement lifestyle and disease management cost of care optimization and improved quality and access to care as mentioned, we took another important step in expanding our relationship with element by closing a contract for a multi year strategic partnership with <unk>.
Caroline together, we are integrating our digital first advocacy solution sure careplus into their help guide services for hundreds of thousands of their members, which speaks to our ability to drive member engagement and increase value for our strategic partners.
This is one of the largest contract we signed it sure care and our hope is that our existing installed base views. This large scale deployment as a void.
<unk> and adopting share care plus for their population.
As a reminder share care pluses are digital first comprehensive advocacy solution designed to deliver value through benefits navigation clinical engagement.
Virtual care and chronic case and utilization management.
Its advocacy is a very intentional and strategic addition to the share care platform. We continue to invest in our capabilities to aggregate longitudinal clinical data with digital connectivity with health systems advanced clinical cost of care analytics and deliver high touch care utilizing telephonic and in home care models.
Carol links network.
We also continue to build out our digital therapeutics ecosystem.
Including investing in check here is clinically validated programs related to that we continue to invest in retaining and recruiting talent on our teams.
Clearly in the recent appointment of our new Chief Medical Officer, Dr. Jed Brewer, a renowned psychiatrists neuroscientists and co founder of mine scientists with share care acquired in June of 2020.
Dr. John is leading the buildout of our digital therapeutics ecosystem.
We also see a shift towards payer agnostic family and clinical advocacy among medium to large employer groups and benefits consultants we can.
Continue to collaborate with elements as national accounts team to offer multi payer solutions to our joint customers and from a financial perspective sure care plus news share care into higher P. M. P ons associated with the benefits navigation space with the ability to take upside and downside risk on the cost and quality of care.
Further in light of the current macro environment, we have found that the labor market continues to be tight.
Retention remains one of the top priorities of our employers and a digital first health advocacy solution can play an important role in increasing employee satisfaction, even as uncertainty in these markets may persist. We anticipate we will continue to see increased demand for the value added and cost efficient advocacy solutions. Additionally.
With our ability to leverage employees longitudinal data alongside share cares proprietary community wellbeing data and insights we can deliver actionable precision analytics that yield higher ROI.
Helping employers improve wellbeing and optimize the overall cost of benefits.
While these collective strategic efforts and market dynamics are helping chair careplus resonate well with the market. The momentum. We are seeing is about more than advocacy. The market is recognizing that the sum total value of the capabilities. We have assembled at share care over the last decade is greater than its parts are comprehensive interoperable platform is yielding strong.
Wrong demand as we continue to solve for the vendor fatigue. The benefit managers are facing given the overwhelming number of point solutions available.
But we believe share care is uniquely positioned to deliver impactful member experience that they're looking for with the ease of implementation whether onboarding an entire population for the first time or introducing new clinical capabilities within the platform such as advocacy for home health.
In addition to share care plus agreement with Carillon, we've experienced diversified growth in our enterprise channel during the quarter with strength in our home health offerings. This quarter marks the one year anniversary of our acquisition of care lengths, which has been very successful both in opening up to new markets and datasets and expanding the.
So we offered to our health plan employer government and provider customers.
Since we acquired this asset Caroline has delivered excellent results and achieving and exceeding the Medicare supplemental benefit targets for our Medicare advantage customers to date, we have grown the Medicare advantage members, we serve from 300000 over $1.8 million.
And we expect that market to continue to expand as we look to 2023 and beyond.
We have successfully integrated care lengths capabilities into our core advocacy offering increasing our precision for engagement.
We continue to invest in and expand Carolyn <unk> capabilities to deliver clinical services to reduce the cost of care through high quality transitional care services to optimize readmission rates.
And provider.
This channel is performing very well this was our largest quarter in the company's history with $29 million in revenue.
It increased by 20% year over year and an expansion in margins. We are working on driving additional margin expansion by automating processes and globalize in a portion of our workforce. The third quarter also saw a record number of records processed as we strive to achieve 6 million for the year.
It is important to note that we hired Harsha Pinata, Hyundee, who has an extensive payor and provider ecosystem expertise as our chief technology officer in the quarter harshest already making an impact in driving efficiencies throughout the business that will yield higher margins as we look to 2023 and beyond.
In life Sciences, we saw success in continuing to grow our top 20 pharma clients and brands and maintained solid client retention in the quarter.
Like others in the industry, we're seeing reduced media spend for pharma D. C C.
According to <unk> channel dynamics data from July 2022, Pharma D. T C promotional spending through July was down more than 14% compared to the prior year and from what we can see we will continue to trend in that direction for the rest of the year.
We're also seeing fewer new pharma brands being supported especially compared to last year, which was a particularly robust year for new brand indications, it's worth noting that the life Science channel has historically performed very well growing organically over 35% in 2021 and that's also grown year over year through the third quarter.
Even in a challenging macro environment.
Despite the headwinds we are optimistic about growth from our 2023 life Sciences product suite and confident our positive performance metrics will continue to drive renewals it keeps share care at the forefront of buying decisions.
Additionally, capitalizing on assets and talent realized through our 2021 Doc AI acquisition sure care of recently introduced the next generation of the Smart Omics platform. Our proprietary no code solution that enables real world data collection and digital biomarker creation by empowering researchers.
Clinicians and academic institutions. They are conducted digitally enabled research studies independently.
By expanding smart Omics, there's capabilities sure care not only broadens the scope of its opportunity in life Sciences beyond the point of commercialization, but also plays an important role in advancing relevant equity and data integrity and clinical research across the healthcare continuum.
Given our expertise in engaging consumers will continue to invest in capabilities to bring efficiencies to clinical research.
Pharma and non pharma customers.
Regarding our previously discussed strategic review, we continue to actively evaluate a number of potential opportunities to enhance shareholder value. We have seen a lot of excitement around share care. So there remains an array of potential outcomes, but we won't be commenting further unless and until additional disclosure is necessary or appropriate.
Additionally, we had $50 million still available in our stock buyback program with the strength of our balance sheet and our belief in the value of our assets. We will continue to evaluate future you said that alternative to drive value for our shareholders as well.
I'm proud of what we've accomplished so far this year and feel we are incredibly well positioned to achieve our future growth goals now let me turn the call over to Justin who will review our financial results for the quarter and share some additional commentary regarding the remainder of fiscal 2022.
Thanks, Jeff and thanks to everyone for your continued interest as Jeff shared we delivered strong results for the third quarter of 2022 for both revenue and adjusted EBITDA.
Oh for sure the third quarter results and then provide some commentary on the remainder of 2022.
Our third quarter revenue grew 9% to $114 6 million from 105.6 million a year ago.
Growth in the quarter was driven by year over year increases in eligible lives on the platform and an increased number of records retrieved.
Year over year growth was impacted by our previously disclosed decision to sunset certain businesses, which resulted in a revenue reduction of approximately $9 billion over the prior year period.
When normalizing for the sunsetting of those products, our overall year over year growth was 19%.
Adjusted EBITDA for the quarter was $7 2 million from $7 9 million for the prior year period.
Our adjusted EBITDA performance was due to a combination of factors, including cost management as well as gross margin expansion in both our provider and life Sciences channels note that the third quarter adjusted EBITDA margin of six 3% represents a significant increase from Q2 adjusted EBITDA margin of 2%.
In addition, we remain in a very strong financial position with $203 million in cash on our balance sheet and over $250 million in available cash.
I will note that our cash burn in the quarter was reduced to $9 million, which represents a significant reduction to cash burn from Q2.
Last quarter, we suspended guidance for the remainder of 2022 and stated that we would hold an analyst day in Q4.
As an update scheduled meetings with all of our analysts for early December and currently plan to provide guidance for 2023 in connection with our Q4 call.
To close out my comments I want to reiterate that we remain confident in share cares long term outlook. So far in 2022 we have enhanced our product offerings with our home health and advocacy solutions.
Secondly, grown our pipeline and reduce cash burn.
We also have a very strong balance sheet, enabling us to continue to invest in growth. Thank you all for joining US today, we'll now open the call to your questions.
Ladies and gentlemen at this time, we will begin the question and answer session.
I ask a question you May press Star and then one using a touchtone telephone.
If you are using a speaker phone, we do ask that you. Please pick up your handset before pressing the keys to ensure the best sound quality.
So withdraw your questions you May press star two.
Once again that is star and then wanted to join the question.
Our first question today comes from David Larsen from BTG. Please go ahead with your question.
Hi, congratulations on the very good quarter can you talk a little bit more about the carillon deal and the on boarding process there and it seems to me like you know in my mind enterprises like your core solution set.
What kind of ensure potential is there into Caroline in terms of total membership.
How's the P. M. P M REIT trending and any color you can give on the margin profile of enterprise. Your goal long term that would be very helpful. Thank you.
Great. Thank.
Thank you Yeah, we're real excited about our relationship with elegance and Caroline and we were able to close.
Clothes that contract last quarter, we're in the middle of implementation, we will be will have hundreds of thousands of members onboard it.
Q1 of 2023.
And and we think that's going to give us a our clients a lot of confidence to be able to sell into our installed base will have almost 900000 members on share care plus heading into 2023, so a new product launch higher P. M. P. EMS nearly 900000 members to start and.
And then we have our big you know 12 million member installed base to sell into and Jonathan do you want talk about the margin and the margins really Dave are similar to how we've guided in the past enterprise margins are right around 50%, 49% to 50%, but we believe with our digital first platform that we can.
Can expand those to the mid fifties over the long term.
And then how about EBITDA margin for enterprise long term just how much your goal.
Well as you know we're a single reporting so we don't break out EBITDA margin by division, but our long term goal.
Is 20% plus and think of that over a three to four year period.
Okay, Great and then I think I heard you say that you're you're helping the plant's bear risk or are you bearing risk yourselves, taking a P. M. P M REIT and bearing risk yourself or can you maybe talk a little bit more about that.
Thanks.
Sure Jeffrey maybe I'd have you answer that.
Sure can you kind of look says these contracts were moving towards risk you know kind of how are we positioned to participate there sure. Yeah. I mean, as you know David the drag is going towards the direction, where more and more risk based contracts are coming up we see billions of dollars of appointment of Washington, a D plus from the philosophy standpoint, we always will.
To align with our customer and build up so much and Maarten do that then we have significantly invested in our ability to collect the data and now we would be doing a very brag that we would take very pragmatic approach towards taking the risk both Florida six P. M. P M plus the upside and downside risk.
Okay, Great and then in terms of EBITDA I mean, good number there 7 million is this a steady ski with continued improvement in the margin or was there anything unusual in the quarter.
It's just very good performance will be at least 7 million a quarter going forward do you think.
Yeah, Yeah, thanks for that where we're proud of it too, especially the the growth over Q2, six 3% versus 2% and a lot of what we've talked about historically, Dave is that we're fully invested.
A lot of leverage in our model, we're fully invested intact and those efficiencies are now starting to kick in.
And so we expect EBITDA margins to expand as we go out to 2023 and beyond.
Okay, that's great I'll hop back in the queue great quarter Congrats.
Thank you.
Yeah.
Our next question comes from Richard close from Canaccord. Please go ahead with your question.
Yeah can you hear me okay.
Yes.
Okay, great. So just to go over the carillon and the numbers you just threw out a with respect.
<unk> hundred thousand.
So just to be clear is Carolina ended 12 million existing or would that be incremental to that $12 million.
Oh, we had planned as you know that Caroline was going to close this year and so Caroline would be included in the $12 million.
Okay great.
Great and I think on the last call you talked about you know or maybe on a follow up with respect to the importance of getting carillon signed in and that.
You know, maybe others were waiting to see execution on that but.
So what you're saying here is you're gonna have 900000 individuals live on shared care plus a January 1st did I hear that correctly.
That's correct.
Okay great.
And then you know.
Maybe on the life Sciences can you go over.
What you said about the I think you said something about.
Q V S and things.
Things were down about 14% in the July report and you said you were trending towards that number.
Yeah, well I was making the point that.
You know that the macro environment for life Sciences for a direct.
Direct to consumer advertising is down for the year, and then I'm sure you're seeing that across our peers in other sectors.
But it's a great division for Us I mean, it grew 35% last year.
You know pays for all the amazing content that we produce that we use.
In enterprise and and we're holding serve you know I mean that even in these headwinds we're still growing in life Sciences. We are just not growing as fast as we were last year, but but there's there's headwinds and you know and and 35% of our life Science revenue comes in Q4.
And so you know we expect softness in that in that area and in Q4.
But on a positive side is we're seeing some momentum in the Upfronts and so for 2023, and we're seeing some new brand indications in and retaining existing clients. So so we're still very bullish on life Sciences. It's just we're kind of working through some of these macro.
Issues.
That many others are as well.
That's very helpful. And then maybe just in from a modeling perspective I know you put this in the Q can you give us the.
The divisional revenue numbers for the quarter.
Yes.
On the consumer side, we were call it $20 7 million.
And provider we were $28 seven.
And then in enterprise 65 point too.
Okay.
First over to.
Lift and each of those divisions over Q2.
Okay and my final question is just like on enterprise. It sounds like you guys have a lot of momentum there just wanted to be clear your thoughts on.
The uncertainty in the macro you know economic uncertain D. You're not seeing any pull back with respect to you know employers you know what I'm, saying.
And hey, we're going to show.
Now expanding in and offerings like this at all.
Well you know I think we are seeing some trends like we've seen finalists meetings get delayed or rfps been pulled back but I think what's so interesting about share cares business is we've got this massive installed base of members. So we have 12 million members and then all of a sudden we launched.
Sure care, plus and we go build this great offering and all of a sudden now we've got 900000, new members that are gonna be onboarding into share care plus at a higher P. M. P M and at the same time, we're building out a bigger sales force and we're building better relationships with the brokers and taking that new offering them back into the installed base.
So there's just a lot of activity and and I believe the services that we offer are extremely important right now for our employee retention in and managing cost.
And so that's that's contributing to a big pipeline, that's contributing to renewals is contributing to new sales but.
But yes overall I mean, you know everybody's cautious in every area of making sure they're making the right decisions and sometimes those decisions get delayed.
You know for sure care Pluses just the example, the first account to get sure care plus was our 2500 associates and the implementation. So easy I just woke up one day and there was a blue button in my share care App that now gave me access you know to our family advocate and so there wasn't a new onboarding.
There wasn't new implementation it was just a new feature.
And we think that ease of use is extremely compelling to our installed base and future customers.
That's great. Thank you.
Sure.
And our next question comes from Craig hadn't Buck from Morgan Stanley . Please go ahead with your question.
Yes. Thank you just staying on enterprise and I know, there's been a lot of growth in the sales force that you just mentioned and can you maybe just talk about where things stand today in terms of some of those investments how you're viewing it heading into 2023, and then just bigger picture how the pipeline is evolving.
Yeah, I believe hey, Craig it's Justin Thank you I think Jeff touched on this as we continue to make those investments and we.
We brought in a great leader, we've expanded the team we've expanded the areas of their focus from the.
The benefits consultants to government to commercial to MAA, so across the board.
And it's showing up in rfps that have almost doubled.
Our pipeline is up 300% and so you know the combination of.
Significantly.
Expanded pipeline as we look to 2023 and 2024.
And a more experienced team over that that time.
You know plus you bad we've now added the Carolina relationship that our enterprise business is in a really good place for the foreseeable future. The jeopardy, you want to add to that no.
Justin what that plus the packaging of our products and what Jeff mentioned in terms of the ecosystem.
To deliver quality.
Who do they would access and also the impact of the cost of care is one of the driving factor.
That's cool.
Got it and then maybe just switching over to the provider business, you've talked about some of the cost initiatives and some outsourcing Jasmine can you maybe just give an update on how youre thinking about the timeline of that like when you might see some of the benefits of those actions for margins in the upcoming quarters.
Yeah, I think it'll start it where it is actively underway.
We've started we have a very tight roadmap on how we tradition transition these resources and.
The fortunate thing is jaffrey who's on the call with US. This is he comes from this world and managed.
Tens of thousands of of outsource resources and in his past position.
And you'll start to see the benefits of that start in Q4.
Then where we'll do other transitions of the workforce in Q1, and Q2 and start to see the full benefit.
In the second half of 'twenty three.
So it's a it's a it's a methodical approach its not all at one.
We're referring to hundreds of employees, but we're being very smart on who we're targeting the frontline workers that are touching our customers. We're keeping all of them. So this is truly.
Back office, where we feel like we can deliver.
Deliver an equal to better product, but with a much less expensive resources.
Got it thanks for that.
Okay.
Yeah.
Our next question comes from Cindy Motz from Goldman Sachs. Please go ahead with your question.
Hi, Thanks for taking my question just a couple of housekeeping just going back to the segments.
Justin so of the $65 2 million in enterprise do you have it and it is Kurt what is care links running is it about 10 million at this point.
And just in terms of I am sorry, if I missed it but did you give a P. M. P. M are an average P. M. P. M. There I'm just that's just some quick things and then a couple more.
So yeah Caroline.
We don't break it out exactly as we as we've talked about on last calls, but care lengths is trending up.
And that.
<unk> has been tremendous for the shareholders and our customers.
And it continues to grow quarter over quarter, but you're you're directionally in the right place and then from a what was the second question I was just wondering if you gave it but I don't think I, usually it's it's I have to go back and I'll calculate the a P. M. P. M. Because I was thinking maybe care links is around $10 million or so so like.
Enterprises like 55, sorry.
So I'll go back and do that.
Uh huh.
Let me say, a I'll say it this way Cindy because we talked about the P. M. P M a lot, but with carillon and and more in that implementation phase now. So we're not receiving full value of that contract yet, but that will ultimately increase our P. M P M and an aggregate basis.
So I think you you're only you'll start to see our P. M. P M grow over the next several quarters.
Right and then the consumer revenue it actually was a little higher than I would've expected you know like you said, it's still grew.
27 million, so just and I know, you're not giving updates right now on the strategic review, but just your comments would seem to indicate that now you're feeling you know that it is sort of you know the collective sort of groupings of businesses am I interpreting that right. You know work together and you know me I mean, how should we interpret some of your comp.
And it seemed to suggest now that you know you're you feel like you're getting the value from the combined entity is am I reading that correctly.
I would say that we've always seen value in the combined entity entity. That's why we put the assets together like we did.
But we've taken this strategic review a very serious and we have a lot of interest and we're taking our time to evaluate what's the best step forward to unlock value for shareholders.
You know so so yes, we are we believe in the combination yes. The combination is performing and yes. We're we're very serious about this strategic review and carefully reviewing all options.
In an effort to unlock shareholder value.
Okay, Thanks, and Justin just one for you I just wanted to go back to the adjusted EBITDA because.
You know we've had the number of add backs you know the transaction and closing costs for a while it's still running like $9 3 million and I think that's cash costs I had thought maybe that was going to.
The lower or not there like when are we going to not see that there and then just also to what is the other expense that $2 4 million and just just if you'd give any color. Thanks.
B. So again as we continue to rightsize the infrastructure really that's been driven by <unk>.
Increased severance for this quarter.
But theres other areas that are better and they're like we are reducing our footprint with leases and as we do that that goes below the line, we're investing in things like ERP systems and Workday. It's one time things that go below the line we expect those.
Those fees to.
Start to come down in the first half of 'twenty three.
Pretty significantly.
Okay, but we're okay. So we're gonna see it it it's going to be there in fourth quarter and then you say, okay. So the first half.
Yeah, Okay, great, Okay, and then but it should at that point by next year than it should be gone correct because it's.
Alright.
I mean, a lot of it should be gone, but again there could be.
You know, there's there's areas that are in that number that our earn out accruals that are depending on do they are they earned or not but we need to accrue form so it won't be it won't go to zero next year.
Okay.
Alright, Thank you very much.
Thank you.
Our next question comes from Eric Percher from Nephron Research. Please go ahead with your question.
Hi, This is golf on for Kirk and thank you for taking my questions. My first question is on gross margin. It looks like there's a little bit lower than I think consensus and us were expecting.
Is there any anything you can tell us or share with us on the complexion of gross.
<unk> for the quarter and is.
I think so far we only I think seed care links as a kind of a weight on gross margin, but is there anything else that we should be thinking about.
The other one would be as we start to ramp up the advocacy business that has lower margin as we're modeling that conservatively and so it would be those two areas that <unk> is growing faster.
And then we're now adding advocacy and so that would be the the slight drag to gross margins are still at 49%, which isn't much different than than our last quarter.
Okay, Great and then you said theres a lot of leverage.
Your business model, particularly when it comes to Q4 or are we supposed to take that to mean that you guys are where you see that what kind of steady state on G&A expenses.
I think that we're going to continue to invest so my comment on on operating leverage that's really across the business. It's part of what.
<unk> helped drive EBITDA expansion in Q3.
The in the G&A side of the business I think that will continue to expand there, we're making a big investment and advocacy and and that takes that takes investment and as Jeff talked about earlier on one one we have a significant onboarding of <unk>.
Two 1 million lives and and so we'll be we'll be investing to deliver a world class experience to those customers.
Yeah.
Thank you.
Yeah.
And ladies and gentlemen, with that we'll be concluding today's question and answer session I would like to turn the floor back over to Jeff Arnold for any closing remarks.
Perfect.
Well in closing I wanted to highlight a few key takeaways from our third quarter.
I believe we've made a lot of progress that sets us up for a successful 2023 and beyond number one in our recruiting and retaining the talent we've been able to assemble internally is of great importance to us.
I think we've done a great job doing that and we have an amazing team.
We've expanded our relationships with elements by closing our partnership with Carillon, which as we mentioned as one of the largest annual contracts that we've signed to date at the company.
It's been very important to US is as everyone knows you know Avalon invested in share care pre IPO I think our team built out a world class digital first advocacy solution, we've been able to win new accounts.
Outside of just Caroline and with all that momentum we were able to secure a hundreds of thousands of Carolina members for sure care plus that you will see all of them are represented in our financials for 2023.
Our provider channel had our largest quarter and revenue ever so it was our biggest quarter ever.
That business continues to operate really well it continues to give us tons of cross selling.
Opportunities and access to data that we think is going to be critical as we start to look at at risk models.
Our life Science channel is facing challenging macro conditions as we discussed.
But we are still up year to date and believe set up for a solid 2023. So we're holding serve there and we're on track to achieve our key key kpis or metrics of 12 million registered lives in our enterprise business and 6 million records retrieved and our provider channel.
A financial perspective, as as Justin said, our revenues growing our.
Our adjusted EBITDA is positive we've continued to reduce our cash burn we have no debt and we have a strong balance sheet.
So in closing I'm, you know once again share cares a diversified company, we're delivering a unique ecosystem with scale and capabilities and customers that does not accurately reflected in our stock price. We believe we represent a strong opportunity for investors and I. Appreciate your time and interest. This morning. Thank you.
Yeah.
And ladies and gentlemen, with that we'll conclude today's conference call. We do thank you for attending today's presentation. You may now disconnect your lines.