Q3 2022 Talkspace Inc Earnings Call
Strategic priorities and anticipated financial results.
While these statements represent our best current judgment about future results and performance as of today. Our actual results are subject to many risks and uncertainties that could cause actual results to differ materially from what we expect.
Important factors that may affect our future results are described in our most recent SEC reports and today's earnings press release.
More information please review our safe Harbor disclaimer on slide two.
And now I'll turn the call over to Doug Braunstein.
Thanks, Janine and thank you all for joining us today to discuss our third quarter 2022 results.
Before we dive into the quarter I'm very pleased to welcome Dr. Jon Cohen to talk space as our new Chief Executive Officer.
John joined the Board in September and previously served as executive Chairman and CEO of bio reference laboratories.
One of the nation's largest commercial laboratories, where he built and scaled scarlet health the country's largest digital at home blood draw solution, which is now a covered service for over 83 million people.
John's visionary leader with a 30 year track record in health care and brings a wealth of experiences and relationships, including deep Payor connections government experience hospital and physician practice management.
Operating excellence and scaling technology, driven digital health care delivery technologies.
Our board and company are extremely excited to have John leading talk space forward and its mission.
And I look forward to working with him as I continue my role as chairman.
Thank you, Doug and thanks to all of you again for joining us today.
Thrilled to join talk spaces talented team at a time of great need for high quality affordable and personalized mental health services first.
First I would like to thank Doug for his leadership over the past 12 months.
Is there the company during a difficult transition and has executed seamlessly making progress across all business areas.
Doug's tenure, the B to B business scaled significantly the beat to see media spend efficiency improved dramatically and the size and productivity of our clinical network also increase.
Accordingly, he instills operational and financial discipline throughout the organization and his efforts have laid the foundation for talk spaces future success.
When I joined the board in September I was excited to be part of such an innovative mission driven company like talk space.
And as a new member of the board I've gained a deep appreciation for the fundamental strength of the talks based brand its differentiated technology platform, our leading position with payers and clinicians on the firm's culture and talented employees.
I've taken on the CEO role because I believe that we have an enormous opportunity ahead of us.
Man for talks space services continues to increase and user engagement has never been stronger.
We have a robust product offering.
Leading footprint in our <unk> business.
Sizable network of tenured clinicians, which provides us the opportunity to bring meaningful value to our members Payors and enterprise partners.
Over the coming weeks I'll be listening and learning from our employees clinicians partners and investors.
Im personally committed to expanding access to mental health care and have the greatest degree of confidence in our long term growth opportunities for talks space.
I expect to further address our strategic and financial priorities and our future, earning calls and with that let me turn it back to Doug.
Thanks, again, John and I am truly excited to work with you as you lead the company forward.
John is joining our newly strengthened leadership team at talk space during the quarter, we hired Caitlin Watson as our new Chief Marketing Officer, Andrew Cooper's our head of HR routine of going in as head of clinical network and we named Steve <unk> as head of our product organization.
These executives are already having an impact on our organization and it's a testament to the fact that we continue to attract exceptional talent to talk space given its important mission.
Importantly, we believe this quarter's performance demonstrates we are delivering on several milestones in our strategic and business transformation that Jennifer and I have spoken about during our prior earnings calls.
So moving on to our quarterly performance on page three.
Specifically you see the <unk> revenue in Q3 was up over 65% year on year on a comparable basis, excluding prior period adjustments in the third quarter of 2021.
And a 15% quarter on quarter growth driven by a meaningful increase in the number of sessions and active users.
<unk> revenue for the first time represented most of the company's revenue in the quarter.
Our focus on growing our <unk> business is delivering what we believe are meaningful improvements across most metrics.
We added significantly to our covered lives to this quarter, we delivered on record daily sessions.
We added to our <unk> customer base, and we continue to generate a significant flow of b to b users through what was our traditional consumer only channel.
Importantly, the 9 million lives we added in the quarter came on to the platform in the second half of September .
Given the timing of these new lives it had a modest revenue impact on the third quarter.
We are also in advanced discussions regarding additional covered lives in Q4.
We continue to expand our enterprise franchise, which grew 62% year over year and 10% sequentially.
As we launched 10, new accounts and we're able to renew some of our legacy contracts on more favorable terms.
So as a result of these efforts, we expect our <unk> business to be an even greater share of overall company revenues in the coming quarters driven by growth in this business channel and our continued investment.
As you can also see on slide three <unk> revenues declined quarter on quarter by 18%.
As we managed our advertising spend down for the fourth sequential quarter.
As expected. We're also now recognizing the full impact of lower renewals from prior cohorts on current quarter performance.
We expect this trend to continue at least through Q4 were declines in revenue may exceed our planned reduction in advertising spend.
So if you turn to slide four.
You'll see on this slide we continue to make real progress on the four key initiatives I outlined in our prior quarterly call.
And if clearly prioritized our internal resources around these initiatives.
So first it starts with growing our <unk> business.
I've already discussed a number of the financial metrics and Kpis that highlight our progress during Q3 for the <unk> business. So let me also highlight a number of important product changes we've executed on this past quarter that are driving these metrics.
During the quarter, we enabled members to select their optimal coverage plan, which led to higher utilization as we mentioned last quarter, our manage behavioral health care cohorts are particularly sticky and we expect monthly utilization to improve as these cohorts mature.
We also managed to fulfill demand in a more timely and efficient fashion by leveraging our asynchronous capabilities, which have also contributed to higher conversion better engagement and better margins.
We introduced our matching by availability function for video members at the end of the quarter.
Which allows a member to choose a therapist by session availability according to that members schedule.
Again, we're seeing improvements in conversion based on this new feature.
In the third quarter, we were also able to fully automate our e-commerce funnel unifying the <unk> and the beta see consumer experience through that channel.
We will be introducing additional product enhancements in future quarters, including making the transition from EAP to M. B H more seamless for the member and the provider.
Which we believe will also increase engagement.
Importantly, while these product enhancements require very little additional investment many of these can drive utilization conversion.
And retention across our entire covered lives platform.
Last on the DTA side, we're also making changes to our product to enable HR executives to better optimize their entire behavioral health care spend.
External research continues to suggest that behavioral health care needs for employees continues to be a top priority for HR executives and we believe our products suite offers a range of alternatives, including talks based self guided to address company's needs.
Our next priority is moving the company towards cash flow breakeven.
That means an enhanced focus on efficiency.
I'd say like many companies today in our third quarter, we underwent a thorough review of our cost base.
As a result, we implemented headcount reductions and organizational changes at the beginning of Q4. So for example.
We unified our marketing efforts for <unk> B to C and b to B to C across the company under our new Chief Marketing Officer.
This created significant efficiencies in head count and it also allows us going forward to optimize our marketing and our brand spend more effectively across the full membership platform.
Besides expense controls, which remain a priority across the business, we're continuing to make progress on revenue cycle management capabilities.
And our customer service operations, we expect that both of these efforts will improve our cash flow generation continuing into 2023.
Separately, we also expect to take some additional efficiency steps in Q4, which will further reduce our operating expenses throughout 2023.
We expect that as a result of these actions our operating expense run rate will be reduced by approximately $4 million per quarter.
Excluding the impact of further marketing spend reductions.
Youll see a portion of this reduced run rate excluding severance costs reflected in a more contained EBITDA loss in Q4, but the full effects of the changes will be realized in 2023.
Third.
Our clinical network remains a top priority for the company.
As we meet growing <unk> demand.
We expanded our network again in Q3, the second consecutive quarter of gains in our network.
We did this by improving our platform and enhancing our recruiting training and retention efforts for our independent contractors.
We've added several new product and design features and we continue to add those through Q4 and into 2023, and we expect that that should further enhance our networks engagement with our platform.
As we discussed on our second quarter call. We took significant action through the third quarter to improve the quality engagement and clinical efficiency of our NPP network.
As a result, while this network has been reduced we've significantly improved engagement of our remaining npp's with members and we are now once again, adding selectively to dish network.
These actions also help to improve gross margins in the quarter.
Under our new head of networks leadership, we've also reorganized our internal resources to more efficiently manage the network <unk>.
Taking out excess costs as well as improving operating performance.
Finally.
We continue to optimize our b to C business.
As I mentioned, we reduced advertising spend again this quarter, specifically by scaling back our performance marketing and emphasizing organic traffic.
Our organic traffic increased double digits sequentially, driven by our Google search engine optimization efforts as well as editorial content production.
Paid conversion one of our areas of focus also modestly improved during the quarter as we optimized our media mix to higher conversion channels.
Despite these efforts CAC increased modestly sequentially for the first time in several quarters, driven largely by higher cost per paid visitor.
In light of these fundamentals, we took a number of additional steps to reduce head count and bring down our external vendor cost.
These actions contribute to an important part of our overall operating savings going forward.
So if I step back across the business.
We're pleased with the progress we've made this quarter to balanced growth in our areas of focus.
While taking specific actions to improve cash flow.
I'm, particularly excited about the new leadership of the company as we head into 2023 and expect they will continue to make progress on all of these initiatives.
We believe given the investments we've made this year that the company has the balance sheet resources it needs to reach profitability.
While continuing to deliver on its mission to provide high quality behavioral health care and with that I'll turn the discussion over to Jennifer.
Thank you, Doug and good morning, everyone.
Instant with prior quarter.
The sequential trend and we believe this view provides useful context to the progress, we're making against our operational and strategic initiatives.
I will also provide you with a few directional insights relevant in the key areas of our financial as it relates to Q4 in 2023.
Starting with slide five during.
During the third quarter total revenue by $29 3 million down 2% sequentially. This was driven by strong momentum in the <unk> business and in DTE.
I've set by further softening in the BDC business, which we had anticipated.
<unk> revenue was $16 $8 million at.
And 15% sequentially, driven primarily by a higher number of session completed by behavioral health.
<unk> members.
Progress in our DTC business, including new accounts and improved terms on renewing accounts.
<unk> revenue was $12 $5 million down 18% from the second quarter.
Klein was driven by a lower number of customer acquisitions in the period.
Fewer renewals from smaller existing cohort.
As we indicated in our last earnings call. We believe the macroeconomic conditions remain a headwind to our out of pocket HSA members.
As we build our coverage in the pair footprint nationally. We believe these conditions will provide additional incentive for members to leverage their health benefits to cover the cost of therapy through our platform.
We see early signs of that today as we drive to be conversion.
And we're offering.
We believe we are positioned well competitively to take advantage of this trend.
Moving to gross profit in the third quarter gross profit was slightly up versus the prior quarter at $14 $6 million.
Gross margin at 49, 8% increased approximately 100 basis points from Q2.
This is driven primarily by efficiencies, resulting from the reductions in our full time therapists network early in the third quarter partially.
Partially offset by the revenue mix shift towards <unk>.
As I have noted on prior calls our <unk> business gross margins are lower than our <unk> business gross margin.
Higher contribution margins for the company.
And we continue to work on product enhancement to improve margins over time.
Turning to slide six.
Third quarter 2022, GAAP operating expenses were approximately $34 million.
Down 3% from the prior quarter.
Excluding stock based compensation and nonrecurring items Q3 expenses by approximately $30 million.
Compared to $32 million in the prior quarter, driven by lower media and G&A expenses.
As Doug mentioned earlier in the fourth quarter, we initiated meaningful reductions to our operating expense base.
<unk> $4 million per quarter.
Which we expect to realize partially starting in Q4.
I believe this is an important effort for the company and we will continue to focus on operating efficiencies going forward.
The third quarter net loss was $18 million.
Adjusted EBITDA loss narrowed to $15 5 million, an improvement of $1 5 million compared to the second quarter.
Given primarily by a reduction in operating costs.
We do expect adjusted EBITDA loss to continue to narrow in Q4, driven by the partial impact of our operating efficiency measures.
We continue to maintain a strong balance sheet with approximately a $153 million of cash on hand as of September 30th, which we believe will be sufficient for the company to reach profitability.
Continuing to deploy resources towards initiatives that will drive revenue growth.
Moving to slide seven.
It provides additional detail for our <unk> business.
Third quarter <unk> revenues were up 15% from the second quarter.
<unk> performance was driven by a 16% increase in the number of sessions.
The penetration rate across our member base and the level of customer engagement, both reached an all time high.
As Doug noted, we added 9 million lives in the second half of September .
Given the timing this had only a modest impact on our third quarter revenue.
Contribute to fourth quarter performance.
In October we have seen continued strong session growth based on new lives.
Higher engagement through our product changes and better need to be conversion.
We expect that trend to continue we do traditionally experience a seasonal slowdown towards the end of the quarter as it providers take time off for the holidays.
This can reduce the number of sessions build in our last month of the quarter, which may negatively impact trend line performance in the short term.
ETE revenue was up 10% as we added 10 additional accounts and we renewed some expiring contracts on more favorable terms.
While these account wins or taking longer, particularly with the macro environment challenges.
We have several large accounts initiating benefits in 2023.
Turning to slide eight to review our BDC performance.
<unk> revenues were down 18% sequentially in Q3 performance is driven by an 11% decline in active members primarily from lower renewals in the quarter and we expect this trend to continue into the fourth quarter.
We also reduced our media spend again in the third quarter as we continue to actively manage for efficiency and acquisitions of both b to C and b to be members.
I want to highlight a number of levers we believe we have to improve our cash flow over the coming quarters before opening up for questions.
First we remain enthusiastic about the fundamentals in the <unk> business.
And the revenue growth demonstrated by our Q3 results.
We continue to believe this to be our largest and most profitable growth opportunity going forward.
Second the important steps that we've taken to reduce our cost base will have a significant impact on cash flow in 2023.
Third many operating expense investments in systems processes and controls that we made in 2022 should benefit from operating leverage in the business going forward.
And finally, we continue to be disciplined in how we deploy our resources prioritizing, our most compelling and profitable growth initiatives.
And with that we'll open the call for questions.
Thank you at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.
We will go first to Charles <unk> at Cowen.
Sure.
Hi, good morning, Thanks for taking our question here so it's the Broadway.
Charles.
Okay.
Hey, Hey, yes.
So I just wanted to go to the customer acquisition costs I think you had mentioned that.
The tax debt increased modestly.
On a cost per kg visitors so.
I guess sorry.
Can you give us some color on your expectations for customer acquisition costs heading into the fourth quarter given some of the bigger companies have reported.
Weaker spending environment.
Yes.
I would say traditionally for you.
Seasonal matter given the holidays.
<unk> tends to go up it has for us in the past I believe it has for others. So our expectation going into the quarter is some additional modest pressure on Tac.
As we mentioned we also expect to continue.
The aggregate amount of our ad spend.
And our.
Patient is the combination of what will be our fifth sequential quarter of reduced AD spend and the declining renewal base from prior customer acquisitions means.
There is likely to be at least one more quarter of.
Revenue pressure on B C that exceed the amount of cost we take out in the advertising.
<unk> said all of that.
We continue to.
Find opportunities.
Improve our mix, we've been building organic traffic quite dramatically and I would also say which is not included in any of these CAD calculations that we record.
We're driving a lot of b.
The customers.
Through the beta see traditional channels.
So if you looked at that and adjusted our tax is actually quite continues to go down, but but where we're really trying to make.
C business.
Standalone cash flow breakeven, which is where we're driving that business towards and then get all the incremental benefits in B b.
<unk>.
Customer acquisitions through the consumer channel.
Okay great.
Thank you.
We'll go next to Ryan Daniels William Blair.
Yes.
Hey, guys.
Brian Daniel Thanks for taking my question I guess just to start off can you provide any further color on the elasticity of the end market.
And just especially as it relates to the inflationary environment are you seeing a change in demand at all and especially on the DTC side.
And if you are seeing any pressure or is it really only impacting the DTC side compared to the b to B segment.
<unk> often have covered cost covered by a health benefit.
Yeah. So.
Part and parcel it's a great question part and parcel of the large T J.
Shift to move our members from out of pocket.
Consumer cost into.
Insured products.
As our anticipation that overtime is far better to service.
Members.
Through an insurance product or EAP product or direct to employer.
And.
We are seeing that shift play out.
Real time in both the dramatic acceleration, we think we've now experienced for several quarters in the number of members using our insured products.
Building out our covered lives gives us even greater opportunity set.
Do that shift and as I just mentioned on the prior call. What we're doing is we're making it easier through this direct to consumer channel to actually.
Find out that you are covered by insurance and pay through insurance and you'll actually see over the next several months, you'll see even more website design changes that encourage people to actually sink their care through.
Neither EAP or their traditional healthcare health insurance benefits.
We're doing that because we think there's going to be ongoing pressure on the consumer in part.
But we're actually doing that because we have.
Very meaningful competitive advantage relative to almost <unk>.
All other digital platforms in terms of how many lives we actually cover.
Through insurance and so that's a significant competitive advantage for us that offers.
Datacom quality of care.
Far lower out of pocket experience for for consumer.
Yes.
Okay. Thanks.
Great.
Quick follow up I know last quarter for <unk>.
Headwind that impacted results as the W. Two clinical inefficiencies I'm just curious.
It shouldn't be as you noted last quarter impacted results again this quarter.
Okay quarter.
And then two if you could provide any color on the progress of changes you're implementing for that network and then any update on the hiring hiring of a fulltime clinicians that would be appreciated I believe.
You bet.
But I just wanted to clarify thanks, yeah. So so we did mentioned in our second quarter call that we were going to take a series of actions in Q3.
We believe would dramatically improve.
Engagement level level.
Members.
For our W. Two network and we took as we mentioned we took a whole series of actions. The result of that is R. R. W. Two workforce today is is smaller.
But it is far more efficient and far more engaged.
And as a result of that it actually had a modest increase in our reported margin.
For the quarter, we expect that.
A lot of those actions took some time to implement during Q3. So we will see the full benefit of that in Q4. The other piece of it which I think is really important.
We have also made significant changes both to the platform the nature of our recruiting how we train.
Trac goodness of our platform independent contractors icp's. So so while we were reducing headcount for W. Twos, we've been actually.
Exceeding.
Of our total numbers are going up because we've had very strong success in recruiting independent contractors.
Okay.
For Q Youll start to see because we now believe we've got the right processes and controls and management systems in place you'll start to see us, adding selectively to our our national providers, our MPW to network.
Sure.
Take your lead in states, where there is.
A very high demand and and we think those.
<unk> full time clinicians can immediately come up to the efficiency standards that we expect for the network.
But but we're making I would say in the last several quarters. We've made a lot of changes to the platform and the product and investment.
That are really starting to pay dividends on the network side for us.
Yeah.
We'll go next to Daniel Crosslight at Citi.
Hey, guys. Thanks for taking the question.
Into the selling season for next year is largely over I'm curious if you can provide a little more color on how we should think about enterprise and health plan at for 2023.
Where you're seeing the greatest sources of strength in the <unk> segment.
Yeah.
So let me let me separate it out.
On the so obviously cross the VIP segment.
There is the EAP and MBA.
Sales process for us.
That actually is an ongoing that happens throughout the year. So as I mentioned, we've got.
Sure.
We obviously had a very successful addition of covered lives in Q3.
<unk>.
We have we're very far along in.
Additional wise in Q4.
And I would tell you right at the moment the level of discussion in backlog.
For quite a significant opportunity set of additional lives throughout the course of 'twenty 'twenty three is good.
In.
Part of the challenge quite frankly is getting the systems for these large national payers and regional payers.
To talk seamlessly to our system and the actual.
Implementation time for that somehow.
Sometimes it takes months, if not quarters to actually from the handshake or the contract to the first live actually coming on stream.
That's not a seasonal business and its.
We believe our pipeline and backlog of discussions there is good.
Ever bid.
The the the.
Ed.
DTE business as we commented.
That selling cycle is longer today.
We do have a number of large accounts, Jennifer mentioned that come on board starting in January .
I would say the the.
Dialogue remains really robust with HR executives and so.
And the selling cycle really for small and mid cap companies is actually not annual it tends to be an additional benefit that gets added.
Throughout the course of the year and so there is a reasonable pipeline for us of that activity the larger players.
Tend to be a little more annual in nature, and I would say that the economic environment is is getting.
More challenging for them.
But it's interesting that's actually we think creating longer term opportunity for our product set because we've got a very.
<unk>.
<unk> that I mentioned that we've been rolling out that really optimizes the existing <unk>.
Pedro healthcare spend between EAP.
<unk> and.
And our added benefits that we're finding a lot of traction with both HR executives and CFO as we go to market.
No.
It is on the east side, I think it's going to be able it will remain a little slower selling cycle.
We like our mix of products.
Going into a little bit more of a challenged economic environment.
Yeah. It makes sense, if I look at the BDC, but I get the the slowdown in active member.
Growth.
As I look at <unk> or really P. MTN there.
All of that.
It was a timing issue here, but they follow around.
<unk> percent sequentially and three Q versus basically flat in <unk> and up in <unk>. So I'm just curious if youre seeing some weakness in.
Archuleta consumers scaled back in spending maybe theyre doing less bias.
Video sessions et cetera.
Causing that weakness in TTP ARPA.
Yeah, I would say I wouldn't I mean I know.
So people are looking for signals.
I wouldnt overly read into the decline in <unk>.
Consumer weakness.
Personally think that's going to be more of a 2023 event or direct to consumer businesses.
I would say some of the <unk> mix for us that declined.
We did some things in the product mix and offering that.
We think took our crude down a little.
But actually helped us on the gross margin side, so that was a little bit of our own.
Is the optimization of the product mix that we're selling direct to consumers.
Get there.
There may be some general pull from that but I wouldn't actually generalize too much from what happened in Q3, so the consumer wallet.
Got it makes sense thanks for that.
Other guys.
Yeah.
We'll take our next question from Stephanie Davis at Cherokee.
Guaranteed.
Hi, guys. Thank you for taking my question John Congrats on the new role.
Hoping to kick off my question and just hear about John your top priority since joining the organization.
Kind of what have you and giving.
Given your diagnostics background.
As the biggest out there can be many vantage point.
Well thanks Stephanie.
We are et cetera.
No.
Across our path both in the past.
Now so.
You've seen a lot of your time.
A lot in the last couple of months.
Service on the board of the family.
With it.
Yeah.
I think it's.
In terms of the specific so to answer your question.
Think about that.
The opportunity.
Matter, how you look at the market total addressable market for medical help here.
Right.
It's almost impossible, but a number on the amount of what you look or how you look at it on top of that if you look at the AAP market. That's also continuing to grow dramatically, particularly for large companies that have yet have you done that the team.
Here, it's really been remarkable I haven't been everybody.
People are really quite.
Quite extraordinary in terms of their commitment to innovation that quite honestly.
Sensitive to this.
The board is really.
Well its a really terrific they're really engaged.
They really want to make us successful so it is really encouraging.
As I move into the role to see them.
The strength of the board and their commitment.
Yes.
On onto that.
What's the total.
Startup they've been around for 10 years, they have enormous brand recognition.
People, if you look at the services that people require whether it's a 25% or 35% of the American public actually need or I've said that they want a therapy again.
Pretty big numbers.
If you put all those together on top of my.
Interest.
They forget to experience relative digital ability to building the Scarlet health platform of bio reference which is.
The $80 million covered lives.
The digital health.
And actually having bill.
Several very large <unk> businesses in the past to me. This is what I call a confluence of interesting events that have all come together.
Give me that.
And opportunity, which I would've thought would've happened three months ago, So I'm really excited.
We'll see what happens there is a lot we talked about we want to do long way to go but obviously as the process volatile Doug Doug and the team has made remarkable progress in the last 12 months.
So they paid up for me actually.
But anyway. Thanks for your question I don't know if that answers what you're looking for.
No no. That's helpful. I would I guess my follow up to that would be you have a mix of b to b b to C background and kind of.
Bio reference your time at quest.
When I think about the bulk of your attention will it be mostly on the beta. Besides rfps that are a kind of a balance given what you said about the brand.
I would say that the big opportunities.
The immediacy exists.
But the way I view B to C.
Not <unk> is going to be quite honest I view it as how do you get how do you get a consultative mental health services to the most number of people in whatever fashion they call it.
It turns out that large employer the beta b.
More efficient way to get people services that they need that would be to see my.
So Mike I.
I wonder if I could start with that.
We talked about this yesterday.
Anytime you put.
Finances or money in front of people. It gives them a reason not to not to.
Use of server so the idea is.
<unk>, the barriers, which frequently to financial for people. So that they will utilize the service. So to me, it's not a matter of PVC resin, but it's how do you get as many people onto the platform and thoughtful and I think the big way of courses is large customers need to be AAV program.
The direct to employer, so I think I'll concentrate on.
They are concentrated on both that will certainly lean towards the <unk> experience, because I think that in the future.
Well Sam Thanks for taking my question.
And that does conclude our question and answer session. At this time I would like to turn the conference back over to management for any concluding remarks.
So thank you operator, and I want to thank everyone for their participation and we look forward to engaging directly with our investors over the next several days and again I want to.
Conclude where I began which is the board and the company are are really excited about the opportunity for John and Jennifer and the team to lead our company forward I think we've made real progress over the last 12 months.
We're looking forward to the opportunity to continue to demonstrate that progress for our investors. So thank you again for participation. This morning.
And this concludes today's conference call again, Thank you for your participation you may now disconnect.
Okay.