Q3 2022 LifeMD Inc Earnings Call
Okay.
Good afternoon. Thank you for joining us today to discuss our results for life in the third quarter ended September 30th 2022.
Joining the call today are Justin Schreiber, Chairman and Chief Executive Officer, and Mark Dennison, Chief Financial Officer of Life M D.
Following managements prepared remarks, we will open the call for a question and answer session.
Like to remind everyone that today's call is being hosted via webcast and a recording will be made available via the link in todays press release, which is available in the Investor Relations section of the company's website.
Before we begin I would like to remind everyone that during this call the company will make it better.
Forward looking statements, which are subject to numerous risks and uncertainties that may cause the company's actual results to differ to differ materially from those projected these risks and uncertainties are described in.
The company's 10-K 10-Q filings.
Then.
And it means that <unk> may make with the S. E C from time to time.
Forward looking statements made during this call are based upon our current beach and available to the company.
As of today November 10 2022.
The company assumes no obligation to update or revise any forward looking statements after today's call except as required by law.
Also please note that management will be discussing certain non-GAAP financial measure.
The company believes are important in evaluating life and <unk> performance.
Details on the relationship between these non-GAAP measures to the most.
Comparable GAAP measures and reconciliations thereof can be found in the press release issued earlier today.
Finally, I would like to remind everyone that today's call is being recorded it will be available for replay in the Investor Relations section of the company's website now I would like to turn the call over to life in these.
And these C E O Justin Shriver. Please go ahead.
That's a trademark.
Thank you and good afternoon, everyone today.
Today after the market closed we issued a press release containing our third quarter results and uploaded an updated corporate presentation for Q3 2022.
I encourage everyone to download and review this presentation on our Investor Relations website at IR licensed <unk> Dot com.
During the third quarter <unk> made significant progress on multiple strategic and operational initiatives to position the company for its next phase of growth.
And more importantly, an imminent path to profitability.
I'd like to highlight the following five strategic and operational objective we executed.
First we significantly bolstered life in these profitability across all business lines.
On a consolidated basis, which serve to drive our consolidated adjusted EBITDA loss to below $1 million for the quarter.
Second we continue to scale and creates significant growth in our virtual primary care business.
This strong growth was enabled by successfully launching a host of new features on our primary care platform.
Such as our prescription drug discount card program.
Symptom checker and more.
Third, we meaningfully optimize advertising spend and customer acquisition costs.
And fourth we further diversified our telehealth business through the continued scaling of recently launched <unk> products and.
And growth in our <unk> partnership business.
Fifth we made extensive progress in both the work simply divestiture progress.
Significantly enhancing the long term fundamentals revenue and profit growth potential of work simply.
Our continued execution of these initiatives further reinforces our commitment to creating long term value for our shareholders.
And underscores our drive to deliver upon major areas of guidance that we have provided mainly in the areas of profitability and accretion and primary care business with strong patient satisfaction and retention.
Perhaps our biggest accomplishment this quarter was the tremendous traction we gained in profitability.
Concluded our third quarter with an adjusted EBITDA loss of just 889000.
This represented an 86% improvement versus even the prior quarter sequentially when our adjusted EBITDA loss totaled $6 9 million.
And as a testament to the tremendous focus we placed on optimizing our customer acquisition and retention investments.
While paring back to areas that produce growth, but not long term profitability.
This coupled with the tremendous leverage that we are gaining against our fixed operating expenses is laying the foundation on which we will continue our long term growth with expanding profit margins.
As we undertook this process, we eliminated investment in select product offerings that while being growth drivers did not meet our internal profitability thresholds.
Now that we have established a solid base to build on we expect sequential growth to return in the first quarter of 2023 with steadily increasing profit margins.
Lastly, we also saw continued momentum in the growth of our virtual primary care platform.
Launch in the second quarter.
I reiterate my belief that BPC or a primary care platform represents one of the largest if not the largest business opportunity for life and <unk> in the years ahead.
We eclipsed our previous guidance of ending the third quarter with 2000 subscribers by nearly 20%.
And continue to remain ahead of our previous expectations with growing momentum for the business and.
In fact as of today BPC has almost 4000 subscribers. Moreover in recent weeks, we have begun to increase our daily new acquisitions per day, approximately 30, new patients a day to 60 to 90, new patients per day without increasing our marketing spend budget.
I'm very encouraged by the continued strong retention, we continue to see in this business, which reflects the large unmet need for high quality affordable cash pay virtual primary care.
<unk> currently offers one of the most comprehensive virtual primary care offerings in the U S.
One where our members gain access to incredible doctors and nurse practitioners discounted prescription medications labs imaging referrals to specialists when needed an extra wellness guidance.
Our platform not only supports urgent and generalized primary care offerings, but also can facilitate treatment for hundreds of different conditions.
And our programs are designed so that patients could see the same doctor over time, which I believe enhances outcomes and the patient experience.
As I mentioned earlier, we made major headway in optimizing our marketing spend in Capex in the third quarter, we reduced our blended <unk> by 18% versus prior year and 8% versus the prior quarter.
This is a key driver behind both our ability to significantly reduce our marketing spend as a percentage of revenue and rapidly improve profitability of the business.
By operating effectively with these newly reduce CAC and focusing our capital on the offerings that drive the best long term return on investment.
We are well positioned amongst our peer group for a balanced combination of growth and profitability, which we believe will be a key driver of long term shareholder value.
Lastly, during this quarter, we continued to make significant progress in diversifying our telehealth business through new Telehealth service offerings.
As mentioned previously BPC continues to rapidly scale with increasing momentum.
Two recently launched indications leap and our proprietary topical pain management offerings have also begun to rapidly expand.
Following their launch in the second quarter, where they accounted for only about 1% of total revenue and subscriber base. These two offerings have grown to become just under 5% of our total revenue as of the end of the third quarter and combined to become nearly 12% of our total new patient acquisition volume in the third quarter.
Okay.
Beyond our direct to consumer telehealth business, we're continuing to successfully build out our business the business operation.
<unk>, our best in class <unk> technology platform and affiliated medical groups to partner directly with pharmaceutical companies.
We recently, we recently completed our third pharma partnership which adds for branded prescription products to our platform.
We have built an impressive pipeline of potential deals of which we expect to see several closed in 2023.
Which will help us further diversify our revenue mix with high margin <unk> revenue, while providing additional opportunities for cross selling on our <unk> platform.
Work simply continues to be a tremendous performing asset for the consolidated company producing rapidly increasing levels of profitability, coupled with strong revenue growth.
We are currently in the late stage of the divestiture process and actively in negotiations after receiving interest from multiple bidders.
The extreme value and profit accretion from work simply which Mark will speak about later, we remain focused on ensuring that any divestiture maximizes value for license.
And our shareholders relative to the value work simply can create as part of our consolidated company.
We are currently in the late stage of the work simply process and remain in a strong position to create significant value for shareholders with this asset.
With that I will now turn the call over to our CFO , Mark <unk>, who will provide a summary of our financial results Mark.
Thank you Justin and good afternoon, everyone.
The third quarter of 2022 is a major breakthrough quarter for <unk>.
And realizing our pathway to profitability and sustainable long term profitable growth.
We drove our adjusted EBITDA loss of 889000, which was a 90% improvement versus prior year and how does even our internal expectations were.
We remain on track to achieve consolidated adjusted EBITDA profitability in the fourth quarter.
As Justin mentioned, we have made extensive progress on the work simply process and are currently in the final stage of the process after receiving interest with multiple qualified bidders at the same time, we are extremely cognizant of the tremendous growth and profit potential of this asset.
During the third quarter work simply not only grew revenue 57% year over year, but also finished with over $1 million of EBITDA in the quarter, which is expected to exponentially grow in the quarters and years to come.
In fact, we believe works simply has the potential to produce $20 million to $25 million or more in EBITDA in 2023, while producing significant double digit topline growth. We plan to provide a further update on works simply prior to the end of this year.
Now turning to the results for the third quarter of 2022.
Revenue in the third quarter totaled a record $31 4 million up 26% as compared to the same quarter a year ago.
93% of total revenues in the third quarter were generated by our recurring subscriptions.
Hello Health net revenues grew by 15% to $21 4 million.
While work simply net revenues grew by 57% to $10 million.
Or it's simply revenues grew 23% sequentially as compared to the second quarter.
Additionally work simply achieved Q3 EBITDA margins of mid teens, we expect works simply as growth and rising profitability to continue at a rapid pace.
On the <unk> side of the business, we increased our active subscriber base by 36% versus prior year to end the quarter with over 176000 active subscribers.
We were able to accomplish this subscriber growth while refocusing our efforts on our offerings that meet our profitability thresholds redirecting investment into new verticals, and reducing our cost by 18% versus prior year.
Gross margins for the third quarter reached 85% up 500 basis points versus prior year.
Gross profit for the quarter totaled $26 7 million, an increase of 35% from the same year ago period.
Operating expenses for the third quarter totaled $33 5 million, an increase of $1 1 million versus the year ago period.
Excluding noncash expenses of $4 $5 million associated with stock based comp depreciation and amortization.
Net of these expenses operating expenses as a percentage of company revenue decreased by 1900 basis points as compared to prior year.
Equally important we reduced our marketing expense as a percentage of revenue to 55% versus 81% of revenue in the same year ago period and improved leverage in this key spend area by 1700 basis points versus the prior quarter.
Our GAAP net loss attributable to common stockholders for the third quarter totaled $8 1 million or <unk> 26 per share. This compares to a net loss attributable to common stockholders of $14 4 million or <unk> 54 per share in the third quarter of 2021.
Adjusted EPS, a non-GAAP financial measure that excludes noncash expenses preferred stock dividend litigation expense and foreign currency translation totaled a loss of <unk> <unk> per share as compared to 34 cents per share in the same year ago period.
Adjusted EPS also improved 87% sequentially versus the prior quarter.
Adjusted EBITDA non-GAAP financial measure excluding the same categories as noted in adjusted EPS totaled a loss of 889000 in the third quarter of 2022. This compares to an adjusted EBITDA loss of $9 million in the same year ago quarter now turning to our balance sheet.
Cash totaled $5 8 million as of September 32022, and we have reduced our cash burn rate to approximately 500000 per month with the burn rate expected to continue to trend down in fact, we expect to eliminate the cash burn on a consolidated basis by the end of this year.
This underscores the company's commitment to prudent capital management growing our profitability and eliminating our cash burn.
In addition to the potential monetization of the work simply asset life lifetime has secured non binding offers for attractive non dilutive financing option that can further augment our balance sheet and capitalize the company regardless of the work simply transaction.
This wraps up our financial results I would now like to turn the call back over to Justin.
[laughter].
Thanks Mark.
In summary, third quarter results were strong demonstrating our commitment and ability to build a profitable long term business with strong margins.
While growth slowed as we have guided this was the intentional result of shifting our spend into areas producing the best balance of growth and profitability.
While responsibly investing and scaling of new verticals, including primary care pain sleep and <unk> partnerships with pharma companies.
I believe we have one of the strongest business and clinical teams in telehealth, coupled with amazing technology and have never been more excited to watch our continued transition into a world class provider of diversified telehealth services and products. Additionally, beyond our core telehealth business work simply remains a tremendously attractive app.
With a rapidly increasing financial profile that are solidly accretive to our overall company results.
In closing I would like to thank our entire team for their hard work and tenacious commitment to building a platform that positively impacts the lives and health of so many people.
Also I would like to thank our shareholders, who have been very supportive in a difficult economic environment.
Future is bright for license fee.
With that I would like to open the call for Q&A.
Thank you if you would like to ask a question. Please signal by pressing star one on your telephone keypad.
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We will take our first question from David Larsen D T G.
E.
Yeah.
Hi, congratulations on a good quarter, especially.
The progress on earnings.
Can you maybe talk a little bit more about sort of the disciplined approach that you've been taking to I guess focus on more profitable product sales areas and.
Basically I guess.
Focus less on lower profit areas like what exactly are those areas that you kind of exited and maybe can you talk a little bit more about the decline in or improvement in marketing spend in certain areas. Thanks a lot.
Yeah, David This is John so firstly.
We focused pretty heavily obviously on data as we've done more of the data we've been able to see more so for us.
Theres been a greater focus on longer term subscriptions, which we found to be stickier have stronger unit economics, there were certain without getting into specifics of certain subscriptions products, but a couple of.
Products in our core portfolio, where are the returns on investments were nowhere near the typical one five to two acts that we earned in the first year, while they drove sales growth.
Has it gotten more data will be taken away marketing dollars from there and reallocated to the growth of some of the new areas like BPC sleeping pain, which were all going to continue to pay significant dividends for us, especially heading into.
2023, so a lot of it.
Was having more data available to us beginning to test in the last nine months moving to a longer <unk>.
Subscription terms, and then having diversified our product mix, a little bit more being able to take away from some of those more.
Shorter term subscription lower performing from an ROI standpoint areas.
Areas that we were investing in.
Okay.
That's very helpful and I think you mentioned that the number of subscribers was up.
Pretty significantly on a year over year basis.
Can you talk about how that impacts the actual telehealth net orders it looks like the net orders may have declined sequentially, but I think thats by design right.
Yeah, So as I mentioned before we've been moving more and more towards three 612 months subscription versus a lot of the one month of <unk>.
So what ended up happening is you're getting more per order, which is obviously also positively affecting your return on investment in your gross margin.
Frankly, many of these people that make the bigger commitment are also stickier customers.
So youre getting more subscribers.
But just given the cadence of how those orders are being shipped the fact that we've also increased our ability to cross sell.
More than one prescription or more than one product.
And then given customer means that we're getting more per order, but.
So they're going to have as many orders to us the most relevant metric, particularly as we've made this transition as subscribers. We've obviously always shared orders with the.
The street. So we continue to assure that but subscribers is really the you know the measure of the health on the growth of the business.
Okay, and then and then just on can you talk a little bit about the virtual primary care platform like how many providers are actually.
In the virtual primary care solution, how many physicians or nurses do you have on staff and can you share any metrics around the number of patients that are being added on a daily or monthly or quarterly basis, and then also I think importantly, what the cross sell and in selling upsell potential looks like with the virtual primary care.
Platform.
Sure David.
Right now we have just on the virtual primary care platform we have.
Around 15, full time doctors and nurse practitioners.
They're treating patients where we're actively recruiting.
New nurse practitioners of doctors, who were one of the one of the limitations to scaling is not a limitation, but we've just been very careful about kind of scaling this the right way.
So keeping our tax where they need to be.
One of the we're constantly recruiting.
New providers for that platform.
As we said in there as we said in the earlier in the call. The last couple of weeks have been have been the growth has been stellar I mean, we went from.
25% to 30 patients today.
Closer to 100, new patients today.
One thing I'm really happy about is with the patient reviews of their experience with life and D. R.
Practically every indication I mean, they're the reviews are.
Out of five stars they are almost all 48485, which is great I mean thats. The number one metric that we look at it internally.
And the retention rates look good as well even the retention rates for patients that are coming in for one off treatments like <unk> like an STD or something to do with <unk>.
<unk> bid or.
The urgent care equipment so.
We're really happy with the we're really happy with the metrics were.
We're really focused on on launching some new offerings that we think will improve the return on AD spend even more make it clearer to patients what the value add that they're getting from their license <unk> membership as well.
We're now.
Beginning to mail out physical prescription discount cards to all of our members, which we think will go really reinforced the value.
The people are getting we launched the symptom checker on desktop and were soon really met out of mobile we're working on some new features that we're launching in Q1, which will one of the big initiatives for this is to offer immediate console to patients. So right now most patients are getting a console within a couple of hours a lot of tenants.
Our but one of the things we've seen as patients a lot of patients. When you can give them an appointment within 10 or 15 minutes driven immediately from a waiting room.
It's much more desirable and our acquisition costs go down and patients are happier. So we've got a lot of new initiatives.
A complete overhaul of our dashboard that we're going to be rolling out in the next in the next 30 to 60 days, which is going to be very transformative for the entire patient experience. We're talking to a number of big partners, which I've mentioned to you in the past, David but we're getting closer on some big National partnership.
That I think will also really enhance the offering.
And really strengthen life in this brand as well.
This platform is also facilitating.
What we're doing on the <unk> side, that's something that we're really excited about as well. We added we are adding this month, an additional four branded pharmaceutical products, where the life in the primary care platform will be kind of the big serving.
Serving patients that are driven to the platform from.
The pharmaceutical partners web site and we are.
<unk> put a lot of work into that technology, and we're excited to be rolling that out as well.
Okay. That's.
That's very exciting and then just just one more for me you mentioned you used the phrase a couple of big partnerships I mean.
Can you maybe provide a little more color around that to the extent you're able to like.
Could <unk> be a brand that we see like a large retail channel or perhaps some large health plans just any more color around that would be would be helpful. I think.
There are two partnership areas that we're very focused on as a company one is partnering.
The partnership within the pharma services World.
Just to really help us scale.
The <unk> business as quickly as possible.
And the second is partnering with.
National retailers.
Most of those retailers have have pharmacies as well and so we think that there is a lot that we can do there to increase the visibility of the license brand.
Make it easier for our patients to access on demand prescriptions and I think they're we're in talks with a number of potential partners.
I believe that's something that we'll execute on that.
Coming quarter or two.
Okay. Congratulations on a good quarter, especially the profitability and I'll hop back in the queue.
Thank you and next we'll move on to Mark.
B Riley Securities.
Thank you and good afternoon.
Continuing on with the EPC segment.
You talked about really accelerating.
Patient adoption without increasing the spend I'm wondering if you could talk a little bit more about where you're getting these patients and through what channels and is the level.
Spend that Youre currently.
Using to acquire them kind of sustainable going forward.
Yes, Mark chart. This is Justin I'll take that one.
Most most of the new patient acquisition for the primary care platform is coming from search right now so they're high intense searches people looking for treatment from a virtual provider.
We've seen a big improvement as Mark alluded to in the call.
We've seen a big improvement in CAC.
We launched the primary care platform, where I still believe that.
Even even as we scale it.
Can reduce acquisition costs and improve return on AD spend considerably.
Just a lot of opportunity there.
So look the unit economics, we.
We've got a little bit of work to do to get them, where we want them to be but we've got a very very clear game plan for getting there.
I believe that.
When you look at the urgent conditions were treating the chronic chronic care management opportunity and then some of the other specialty areas that we're imminently going into this.
This platform to grow very quickly.
Understood helpful and right now I believe EPC is all cash pay but I think in the past you might have.
Alluded to opportunities to expand beyond that is that still on the radar and how do you think about moving beyond just purely cash pay.
We've had we've had in the past 90 days, we've spoken with with multiple multiple payers.
Some of those conversations are still ongoing and we are.
Yeah.
We're trying to figure out the right strategy there right I mean remember we now enable patients to use their insurance card for of course, they can use their insurance card for prescriptions that.
Our affiliated.
Providers are extending to a local pharmacy, they can use their insurance cards.
They want to for imaging they can use their insurance cards for diagnostics quest or labcorp or any local lab.
So most of our business is actually covered.
We have had some conversations with payers about.
<unk> about getting coverage for the virtual consults, but if you really think about the delta between most peoples co pay and what we're charging for a console it's not that material. So.
The conversations are ongoing we're looking at some stuff in the managed care world as well.
It's tough for me to say, whether it's going to be something thats imminent I don't look at it.
The more that we the more time, we spend looking at it the less I think.
<unk>.
That material to really scaling our primary care business.
Got it Okay and then.
You guys talked about the transition to be more multi month subscriptions.
And then previously on the previous call you had indicated that growth in the back half of this year would would moderate.
Looking for that to inflect at the start of next year.
I'm wondering I guess, how with those longer subscriptions, how churn has been progressing relative to your expectations and do you still expect to see that growth inflect beginning of 'twenty three.
Yeah.
So yes, we do expect a return to growth in the first quarter of 2023.
As far as churn yeah. The early read is it's in line with our expectations.
It's been consistent with some of the other subscription line. The differences that you are getting more.
And every single cycle.
So the economics proves to be a lot better with the payback being a lot stronger.
Margins are being a lot higher as well.
Great and then would love to hear some commentary about the AD market and pricing trends and maybe any changes in potential strategy for attracting new patients across the whole portfolio going into calendar 'twenty three.
Yes, Mark we've got we've got some really exciting stuff in the pipeline actually one big.
National campaign launching in the next seven to 10 days.
Okay.
Really materially, we think will materially and positively impact.
The growth of our business and then a couple of other things behind that thought I'd, rather not go into too much detail on those competitive reasons, but we've got a couple of initiatives. We put a lot of time into over the last six months that were.
Extremely optimistic about and that coupled with improving improving retention.
Cross sell and just doing better on a very with a very disciplined acquisition strategy is y.
Mark and I are very optimistic about.
How about Q1 of next year and putting up some great growth numbers.
Great and then just a final one from me on work simply at.
It seems maybe the language has changed a little bit.
I think previously you had maybe talked about.
Progressing with one specific bidder may be moving a little bit further along.
Uraeus if that.
And <unk> is still the one that you're focusing on or maybe just a little bit more detail on how that divestiture process is progressing thank you.
Yeah.
Since it's in a privately.
Privately governing process right now I can't speak to too much detail.
Yes, so everything is progressing.
The Big thing work simply has continued to.
Economically they become more and more valuable.
It's the result of continuing to accelerate and quite frankly, the numbers, we think it can put up.
In the coming year, and even coming years are substantially higher than when we first entered the process.
So those are all things that were weighing vis vis the.
The valuation we have a very good idea of what the valuation is today most of the bidders were pretty consistent.
Yes, we're far along such that you know.
We're not working with obviously all of those bidders.
I can't say exactly what we're doing right now, but it's pretty consistent there.
There will be.
At the minute.
Decision.
It is dependent on this by the end of the year.
Great. Thank you very much congrats on a good quarter.
Thank you, we'll take a follow up question from David Martin <unk>.
One more quick one for me can you maybe talk a little bit about.
What drove the significant increase in work simply revenue from $5 million, a quarter and <unk> $21 million to $10 million.
This quarter and then also it sounds to me like you.
You don't really have to sell works simply one of the questions I've been getting from investors is.
Why sell it why not hang onto it.
Has that been a consideration thanks.
Yep.
So first of all you know as we mentioned last year work simply like a lot of growth businesses. There's some testing.
Types of approaches that our funnel of trials pricing, obviously some of that contributed to short term stagnation at the end of last year heading into the beginning of this year. That's all behind US we've gotten to a point, where we drill a well defined the business model and look they run themselves were not.
They've got a great leadership team over there.
So that's been the Big reason I mean, it's a business that you know so it's a cash cow runs itself they've got a really good machine over there.
They've diversified their business to no longer just pdfs, and then resume HR market on a couple of other adjacent markets will be coming down the pike pretty soon in relevant areas.
Your second question Yeah.
Yeah, I'd say it is something that we are definitely considering.
So it is becoming more and more valuable and quite frankly.
<unk> generates a significant amount those will generate a significant amount of cash flow that can easily be used.
Funds that invest in core telehealth operations, because the capex somewhat simply is pretty de minimis.
So those are all things that will Wang.
We're gonna.
But depending on that and provide a final update by the end of the year and look we're going to make the decision that we think maximizes value for ourselves and shareholders. We do have options.
We have other things on the table and we.
Are not in a position, where we're obviously forced to have to sell the asset for a price that would not fully recognize the value and or even sell the asset.
Okay, great. Thanks, David I'll, just mention David I'll mentioned quickly to a lot of people forget about the asset life and the finance the acquisition of <unk>, which is part of our simpler earlier this year, which is resume build dot com.
And so.
Why is showing growing just like Mark said on the PDF side of the business.
I mean, you just keep found.
And a formula that works and you put it as I've said many times before I mean this thing is the cash value per dollar in regenerate.
<unk> $3, if not more within a year.
On the resume billed business.
This is like this asset is perfectly positioned for the economy that we're likely going into it in a recessionary environment.
The unit economics are even better than the Pts business.
I mean, they are considerably better than that three to one LTV to CAC, Sean the PDF business and he bought this thing.
Pretty much the best economy that we've had in the last.
And the last.
However, many decades right and so what youre, what youre going to see now is as the economy gets worse and more and more people look for jobs and.
I need to build resumes.
You Couldnt ask to own a better asset then resume build dot com with Sean Fitzpatrick abilities to scale I mean, it is I mean.
It's amazing.
So that's the part of the story as it gets lost on people, but that is that really hasnt started to even contribute to the numbers yet but in Q1 that will start to contribute to work simply its numbers and then munis.
Just as much upside as the.
The PDF and document business, maybe even more.
So.
He has done Sean has done an amazing job building. This thing season, awesome, operator, and marketer and leader and this thing has now announced diversified there is multiple assets in.
We think the world of Sean and the business is building. This thing is really valuable and it's going to be valuable one way or another two two.
To license these shareholders.
We will not I mean, Marc and I had this conversation regularly.
We're not going to rush to sell us, we're not going to do a bad deal. We have multiple we have multiple other options given kind of our growth and the profitability profile company now we're.
We're not going to have to go out and do some sort of an equity raise at this level.
We just we feel really good about the fundamentals of the business and.
The consolidated business quite frankly.
Okay, great. Thanks very much.
[laughter].
Thank you.
And there are no further questions today and that will also conclude today's question and answer to teleconference. We do appreciate your participation. At this time you may now disconnect. Thank you and have a great day.
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Yes.
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