Q4 2022 Intercontinental Exchange Inc Earnings Call

The first time that natural gas and LNG physical suppliers into China is likely to reduce since the early eighties. So now with the reopening what is that going to mean and then you also have a move towards a cleaner environment, where natural gas being the cleanest fossil fuels continues to be in high demand. These are all macroeconomic environments that can be <unk>.

Tradable, they're all things that people can forecast around and we feel great about the position that we have with the business that we've built to help help traders manage around that and we continue to invest in new contracts in the LNG space basis contracts in Europe .

Round that now.

Now on price caps.

I had mentioned on the last call I went through a whole bunch of different issues that price caps can introduce around.

The difficulty you can create for people to manage and trade risk asthma has even come out recently with the comment that you're on.

Unfortunate consequences of a price cap could be making it difficult for people to manage risk now.

Now for the aforementioned factors that I mentioned, the price of Tcf has come way down.

And the price cap right now is set at north of three times, where TTS is trading.

But that said these can create issues for our market participants. So we've decided to do is we're launching a new tcf contract in the UK. It's a look alike to the one we have in the Netherlands now to provide.

Customers a choice.

It's important to point out that that TPS contracts going to trade alongside another tcf contract that we already have in the UK called the TTS frontline, it's a U S. Dollar denominated contract that's oftentimes use as a basis contract to trade LNG cargoes for the U S. Those are also U S dollar denominated.

And all those contracts clear in the UK already so we already have a community of traders that are attached to us in the U K for that and it's a hedge if they decided to use it great at a minimum for us. It provides us a free market price discovery mechanism to manage risk in our clearinghouse and to settle contracts.

Okay.

Thank you.

Next question comes from Daniel Fannon of Jefferies.

Please go ahead.

Thanks, Good morning.

Wanted to follow up on the fixed income and data outlook as you think about 'twenty three the mid single digit growth can you talk about the inputs that you're assuming for 2023, whether that's pricing and where the growth is and I know you've cited some headwinds in 'twenty, two and maybe elaborate a little bit on that and maybe how youre thinking about changes within those headwinds going forward.

Hey, Dan It's Warren good question. So there's not really much change in terms of our expectations and our targets as we head into next year.

Yes.

A couple of years ago, we outlined the growth algorithm for the data business and that's been pretty consistent for the last couple of years. So so there'll be a little bit of price, we talked about in prior years that being around a third of the growth will certainly be contributions from new customers.

Contributions from current customers purchasing more and so I think it's a pretty similar algorithm. If you are thinking about this year versus past years, I think when we're thinking about.

2023, specifically look the macro the macro those factors are a little bit difficult to predict.

AUM.

Perfect, particularly the last two quarters those have been something that have weighed on us a little bit I don't know exactly where those are going to go next year. It does feel like certainly in areas like fixed income we could see some stabilization in and frankly as the fixed income could very quickly become a very attractive asset class. So look we're having some really good conversations.

With customers.

Our.

Data Superstore, if you will where we're indices were end of day pricing, we have analytics, we've got desktops, we got seeds.

It's a really diverse business and so it's an opportunity for us to have conversations with customers in this kind of environment and we are to to maybe find ways to save but spend more with us and that's something I think you've heard us talk about for the last couple of years. So there's nothing really different about our target but.

But again, we're certainly cognizant that it's a somewhat challenging environment for a lot of our customers.

Hi, Dan This is Andy I'm, just going to jump in with a bit more color on what <unk> said I think this segment in particular really illustrates the all weather nature.

First name and the ability for this segment to grow 13% in spite of some of the challenges Warren has highlighted really underpin that if you look at the execution side of the business volatility has certainly been a tailwind, but importantly, new products and new customers.

Acquisition has also been a driver.

New products and the Cvs clearing side of the business, including our Cvs option in terms of ice bonds, we've actually been able to grow our institutional market share institutional.

And the Muni asset class in particular is up 205% in Q4 alone 175% for the full year and we've been able to gain in need about 650 basis points of share in 2022 really driven by the work we have.

Done with the institution to plug into their workflows.

Obviously some of the macro forces have impacted the fixed income and data and analytics line of wine highlighted slightly slower sales cycle and our pricing business.

Trends driving out of our higher capture products into our lower fee capture products, but I would be remiss if I didn't talk about the outsized performance of our other data services line, where we haven't seen a slowdown in the sales cycle and this was.

Really fueled by demand for capacity, which was up 18% in the quarter double digit growth in our desktop and derivatives analytics businesses as well as strong growth in our feeds business. So I think when you take a step back and look at the segment overall, we couldn't be more optimistic about the ability.

<unk> for that segment in particular to grow compounding and a variety of macro economic positions because of the all weather nature of their name.

Thank you next question comes from Ken Worthington of JP Morgan.

Your line is now open.

Hi, good morning, Thanks for taking the question.

Maybe to follow up on Rich's question, but with a focus on oil I wanted to dig a bit deeper into some of the changes that are being made there.

You mentioned on the last call that you were taking Russian molecules out of the Brent benchmark.

And highlighted the reconstitution.

Maybe adding to activity levels and Brent given that Russian oil continues to flow pretty actively in Europe is the reconstitution, helping or hurting like you thought and then secondly, I think Midland W. Ti has been added to Brent.

To what extent do you see this inclusion, making Brent and even more relevant benchmark and as we think about branches a competing product to <unk>.

Mike This shift further drive share.

And Brent in oil.

Thanks, Ken.

Ben Great question.

You're right we had the.

Same dynamic that I highlighted before.

TFS with.

With oil.

Oil as well as downstream products like gas oil as well.

To some degree getting cut off from Europe , but we have seen a similar dynamic that I mentioned.

In the natural gas markets, where you have U S, Norway and middle Eastern oil now flowing in to help.

To help address some of that supply that has been lost.

Based on Russia, effectively cutting that off.

So what we have seen since we announced in the second half of last year, the Russian molecules, we're no longer deliverable into the gas oil contract as an example.

One of the things that we saw develop under underneath the covers is that open interest in gas oil from October one.

To the end of last year grew a 100% and deliveries starting in January of this year.

And then since the end of the year, it's grown another 14%.

So all of that is showing the underlying health of that.

Return and bolstering of market confidence coming back to products like gasoline once that specificity was created.

That said you have a whole so we're seeing market confidence come back brents up as well.

Since the beginning of the year. So we feel good about that contract our Brent options contract has also done very well.

But all of these supply chain changes around the world is why we have been making the investments we've had in a whole bunch of different areas around oil over the last few years.

Two years ago, we announced and launched ice futures Abu Dhabi and the Bourbon contract.

And the interesting development, we've seen with <unk> is it Bourbon historically price middle eastern barrels going out to Asia.

And now as I mentioned middle Eastern oil is also back filling to some degree some of the supply cuts happened from Russia on oil supplies and we're seeing Bourbon now being used to price middle eastern barrels that are going into into Europe .

One of the things that's feeding north of a 50% growth in Bourbon.

Year to date this year, so we're off to a great start there.

The Midland WTS contract that you said.

You highlighted we announced we launched that contract a year ago.

And that contract is off to a great start tons of physical traders if prices Midland Ti that goes to Houston and that hits, the water and a lot of that oil is going over to Europe , It's a perfect.

Product for people to use to hedge cargoes that are going going into Europe , and again with that supply chain dynamic of U S. Oil that's putting a lot of the Russian oil that was cut off we were very well positioned there and then at the midpoint of this year that that Midland contract is perfectly positioned to be traded in parallel to Brent.

With those Midland Ti barrels coming into the Brent index. So we feel very well positioned with all of the investments we've been making in and around oil.

In anticipation of potential supply chain changes.

And we think we're well positioned there for growth.

Thank you Chris.

Question comes from Chris Allen of CSC, Chris. Your line is now open. Please go ahead.

Yes, good morning, everyone I wanted to ask about the mortgage tech the recurring revenue outlook.

You noted some bright spots in your comment comments just in terms of.

Some of the sales youre seeing the conversations you're having with customers, but we are seeing is continue to somewhat.

And in terms of the pace of growth, albeit still at healthy levels.

Coming into the mortgage slowdown you kind of noted that the mortgage industry was had been very busy during the cyclical upturn.

So it was determined there was an opportunity set to improve.

Improved efficiency, there that enormous quantity to an acceleration of recurring revenue growth. So could you kind of frame out the decline in the mortgage revenue growth outlook, what's being driven just in terms of the overall dampening of the industry right now what's kind of the opportunity set in terms of further customer penetration going forward.

Thank you. Thank you for the question Great question.

As highlighted in his point to point out that we're.

Looking to build this business and build some fundamental building blocks that enable this business to grow 8% to 10% over a long period of time.

And you're right. So we've made a very concerted effort one of the big cornerstones that strategy is a concerted move to move transaction revenue more and more towards subscription to make the business model much more.

Predictable under underneath them.

And we feel good about the fact that we've been able to grow subscription revenue in the fourth quarter.

9%.

Given the backdrop of an environment, where volumes were down 60% and sequentially they were down 20% approximately.

So in that environment, we're still able to grow it and I'll be the first to highlight.

Mortgage industry didn't expect the downturn happened as fast as it did or as rapidly as rapidly and as deep as it did.

So we have seen with some of our clients that are coming up for renewal we've seen some clients.

Consolidate gone through M&A.

<unk> business, we saw we've seen some some cancellations due to those factors. So that has created some headwinds.

And to the business.

But offsetting that we've had a number of different items that have enabled us to grow and give us confidence in the ability to grow the business going forward.

First thing is that of the renewals, we had last quarter north of 60% of them renewed.

Renewed at higher subscription rates than they did at the beginning of the quarter due to our strategy to intentionally shift more transaction revenue towards subscription and also success in cross selling more clients.

More products to our clients.

The second is we had a very strong quarter in.

In encompass sales in fact, the strongest quarter that we had of all of 2022.

Was in the fourth quarter and.

And we've seen that in a couple of different areas. So we saw it across all the different segments that we cover so think of banks.

Non bank originators brokers credit unions, but we also saw.

A lot of new startup companies coming to us so the with.

With the unfortunate backdrop of people people getting downsized in this mortgage environment several of those impacted employees are becoming entrepreneurs.

Starting up their own mortgage shops, and we're very well positioned to win that business.

Albeit it may be at a lower subscription fee to start.

We have the ability to grow with them as this mortgage market will snap back at some point in time.

We also see just looking out into the future that theres a lot of the large banks large lot of a lot of large hub lending banks that have legacy infrastructure.

In house systems that they've been running for years that are looking to upgrade and replace that with <unk>.

Our funnel reflects that and we feel really good about the prospects that those companies are looking to continue to make investments here in 2023, which will lead to growth factors for us going into the future.

So that's a little bit of color of what happened in the fourth quarter as well as why we feel good about our prospects going forward.

And I think if you.

Step back this is Jeff if you step back.

What we are.

Talking to the industry about as a fundamental shift.

In.

And the way they they.

Assemble and manufacture mortgages to take costs out of the system to move the industry to more of a SaaS model subscription based model instead of a model where every single mortgage is put together Ala carte with services and the cost of a first time homebuyers mortgages.

<unk> versus the <unk> the cost of $8 million mortgage are essentially the same.

In the current system.

It just makes sense to us.

If we can give the industry a more predictable way of operating their businesses.

Can be more responsive to their customers and allocate costs proportionately.

Across their business, which is which is the way business is done in most other <unk>.

Digital markets are markets that have moved from analog to digital.

Thank you. Our next question comes from Alex Kramm of UBS, Alex Your line is now open.

Sure.

Yeah, Hey, good morning, everyone.

Just wanted to ask about pricing holistically across the business. When you look at the data services space. Some of your peers, maybe some of them in the desktop space with did you not in but we're seeing price increases because of inflation in the mid to high single digit range. It seems like youre much more conservative in your businesses and then when we think about that.

The trading side your primary peer on the futures trading side also seem some can take.

A bigger price increase unusual this year. So when you put this all together and you look at your business. It seems like you're leaving some money on the table and you are a little bit of Fray too.

Trying to Delever, a little bit more so just wondering if youre thinking is it all evolving given the high inflationary environment, There's obviously driving our cost higher as well.

Hey, Alex this morning.

Good question and we've certainly seen.

Some of the peers.

Peers out there and what they've done on the pricing front its always been our philosophy that when we're going to increase price it will come with with value added to the particular product that we're increasing that price on.

And that Hasnt changed and Thats not going to change this year I think from our perspective, the better long term strategy as it is.

Operating that way and that's what we're going to be doing this year, and we mentioned a little bit earlier on the fixed income and data services side, there really wasn't much.

The difference in terms of how we're approaching that this year, we do have a small amount of contracts is it's pretty immaterial at the end of the day that are benchmarked to inflation, but but I don't think you'd really noticed that at the end of the day.

Depending on how much that would fluctuate so so on that front I would say it's pretty consistent.

On the feature side, we're always looking at that.

As an option, but again, it's something we haven't really pulled a lever on.

Up until this point and we certainly have been instances in the past, where we've done it but but something we are thinking about and always thinking about frankly, so I wouldn't necessary thats much of a change but.

But yes, that's something that's out there and then certainly cognizant of what some of the others have been doing.

And this is Jeff I would just mentioned that we spend a tremendous amount of time focused on our own costs and the cost of delivering these products and continue to to make prudent investments, but underneath allocate to personnel and resources.

We have been.

You may notice, we have all of the major exchange groups, we've been the most cautious if you will.

Moving business to the cloud.

Because those are areas, where we've seen the largest cost increases in them.

Most unpredictable rises and cost so we have continued to be conservative.

In delivering our products the way our customers want to see them, but trying to do it in a way that is very very cost efficient.

Thank you. Our next question comes from Alex Blaustein of Goldman Sachs.

Your line is now open. Please go ahead.

Hey, everybody. Good morning, Thanks for the question.

I was hoping to come back to some of the energy dynamics in the space and I was hoping you guys could talk about the environmental for bid.

It's great to see the DTF complex.

Coming back to life here in January .

What would it take to get against the environmental products going again and kind of what are some of the dynamics in that market for 'twenty three.

Thanks, Alex its been and.

Yeah, we feel really really great about the position we have in the environmental marketplace.

As you know we were here very very early almost 13 years ago. When we acquired the climate exchange and that was really the foundational piece to it and we've been building and investing around this.

The entire time since we've since we've owned that and now have the.

Most global complete suite of solutions that are helping our clients price carbon.

Offset their carbon risks.

Trade renewable energy credits et cetera, and what are the other strengths that we have to our environmental businesses that there is a symbiotic relationship that we see with energy a lot of people that are producing energy are consuming energy need to care about the price of carbon so we see a symbiotic relationship there.

For our for our business. If you look under the covers of of what was going on last year. In 2022, we did see some headwinds as I mentioned in my prepared remarks on the European Union allowance markets and a lot of that was associated the time.

Capital and attention.

Being paid towards the towards the energy markets.

That said, we continue to see market data subscriptions in particular environmental are growing nicely over the year. So we continue to have people.

Added added into our community between our market data between our.

Instant messaging platform and chat platform, we continue to grow visibility and interest into our markets there.

I'd also point out that European Union late last year reaffirmed the trading scheme and continue to signal that things like free allowance thresholds. So the amount of carbon that you are allowed to admit before you have to buy allowance all of those are going to start coming down which means that more carbon is going to need to be priced in more sectors of the economy are going to be captured so far.

Long term looking out over the horizon perspective, that's a tailwind of growth we launched our UK allowance platform that was up nicely last year up 16% North America as I had mentioned had a record last year of three almost $3 7 million lots traded with a record number of market participants in their Ah Reggie.

Contracts, which is the regional greenhouse gas emissions, California carbon allowances renewable fuels.

<unk> all had a all had a great year.

We continue to invest here by launching new contracts, we launched Texas wind solar contracts last year and we also launched a few tranches of nature based offsets.

One of the things that we announced at the end of last year that may have flown under the radar for people is.

When you look at the offset market in the in the carbon and environmental credit markets.

Those markets tend to be called voluntary.

And they are very nascent those are markets that no. One has really been able to effectively develop yet and they're all in very very early stages.

What are the key problems, we think that there is from our experience in developing other markets is that there's a fundamental fundamentally very difficult for somebody understand what is the offset that one would want to trade.

It is the underlying reference data associated to it what are the components that make up that offset or that environmental or that environmental credit.

What's the quality of that credit basic supply information like how much was issued when it was originally issued how much has been retired and how much still exists so.

So we launched at the end of last year, our reference data service.

Our community of over 100000 instant messaging.

And chat clients.

Our traders that are utilizing that all day long there energy traders theyre environmental market traders can instantly look up.

We offset any any environmental credits.

To get all of the reference data associated to that to that credit how much was issued when it was issued how much has been expired how much is still available to trade. This is all basic fundamental supply data that people need to be able to.

Price fundamentally price a contract we pulled all that together you can gather all that information on a near real time basis, we pulled it together from a variety of different sources to make what was hours worth of work if not days begun instantaneously.

Obviously with that information that can help with price formation and eventually interaction with our community to help.

Identify people that would want to trade. So we feel great about our positioning there we're investing there and Thats just one significant example of it.

Nascent market that we think we have some foundational elements that we're excited about.

Thank you next question comes from assignment Lynch of Atlantic Equities, Simon if I can.

Okay.

Alright, alright, thanks for taking my question.

I just wanted to cycle back to the mortgage.

And specifically looking at the.

Transaction revenues.

I'll just point.

As you increasingly looking to shift your revenue streams towards the recurring revenue line over time.

Should we look at that as well.

What does that mean, we should.

Assume that you effectively giving up some of the upside for when mortgage volumes do start to rebound.

Then secondly.

Is that should we assume that the sort of level of outgrowth versus of the transaction revenues most of that is mortgage.

Industry volumes should should.

Should narrow.

Zurich, because you're shifting more group business to recurring revenue streams, just trying to understand the dynamic that's going on between the recurring revenues and transaction revenue at this point.

Sure Hi, Simon it's Ben.

No.

There's a couple different pieces to that to that question that all of that all of that I'll cover. So on on transaction revenue. We have said we are willing to give up some transaction revenue that we have today. So take for example.

Quote unquote success fee. When I went alone is codified theres, a transactional fee associated to that that where if we lower that to some degree for our clients, but shift more of that towards recurring revenue and more predictable revenue to us we'll do that so there is some.

Short term impact to our transaction to existing transaction revenues.

At the same time, we have a whole suite of other services that were cross selling to our stable of 3000.

<unk> customers for example around the world some of which are recurring some of which are transaction that as those continue to mature because they're very early stages, but are showing some great signs of success, our ability to cross sell those things like our data and analytics offerings, which were transaction that we've tilted much more towards subscription.

But then we also have services that are clothing line item that we're continuing to invest in and we're continuing to add on that will be incremental transaction revenues. So there is a mix underneath the covers there, but we believe that having a more predictable business model for the longer term it will enable us to continue to grow the business at 8% to 10%.

A year for a long period of time.

Thank you.

Next question comes from Craig Siegenthaler from Bank of America, Greg. Your line is now open.

Hey, good morning, everyone.

I wanted to come back to Ben's commentary that <unk> was the strongest mortgage tech sales quarter.

Since last year.

What products drove the increase in <unk> versus the prior quarters and also given several announcements of exits and downsizes in the residential mortgage world and I'm thinking you know wells Fargo is probably the biggest which products you're seeing under the most pressure on the sales front in <unk>.

Thanks for the thanks for the question. Thanks for the question Craig So a lot of what we saw in terms of sales strength. So I'll just I'll talk about 2022 first and then I'll go into in the fourth quarter. So for 2022 as a whole our IQ that the automation service that's lowering the <unk>.

Cost of Manny.

Manufacturing alone to our clients was very strong throughout the entire year and each quarter. We had a we had a good quarter in selling new clients onto that platform and again thats hopefully lowering their cost of manufacturing along a lot of the comments that just made before and hopefully those cost savings get passed down to the end consumer.

In the fourth quarter was an interesting dynamic it was actually our core encompass product that drove.

That sales strength that we had in the fourth quarter.

So what we're seeing is that while you do have customers that are consolidating you have some M&A some downsizing of <unk>.

<unk>.

With that client mix.

The two the two things that we see in parallel or that one a lot of the a lot of the banks.

Credit unions.

Non bank originators. They are using this time to invest in infrastructure. So if they have in house systems. For example, which is often what we're on seating.

They are looking to invest in their infrastructure to be ready for when this market SaaS back book.

Looking at our funnel going forward, we know that a lot of the big banks.

We're looking at that that infrastructure that they have and looking at making.

Investments to position them well when the market when the market snaps back.

And then the other thing that we're seeing is as I mentioned as employees are impacted.

By these downsizings, we're seeing a lot of them start new shops.

As entrepreneurs are starting new shops, and we're well positioned to win that business as well, so we're very well positioned across the entire spectrum.

And people are taking we see people taking advantage of the opportunity right now where there is strained and system to invest and be ready for when the market comes back.

Our next question comes from Brian Bedell of Deutsche Bank, Brian . Your line is now open.

Great. Thanks, Good morning folks thanks for taking my question.

I'll turn it back to the fixed income trading it's been such a strong growth trajectory and when you described.

Good traction in the Muni business and data.

Maybe if you can talk a little bit more about the mix of.

Revenues within that.

I know the market share gains have been really good is it mostly munis.

And just thinking about the sustainability of this I mean this has been growing.

Some more than doubling on a year over year basis, reaching $100 million annual revenue business in the second quarter and if it continues to grow like sequentially it will be.

$200 million dollar annual business within a couple of quarters. So just trying to get a sense of the drivers behind that and if you think this momentum can continue.

Yes, thanks for the thanks for the question.

As I mentioned.

Volatility certainly did help out that business.

But a lot of the share gains we've achieved in the institutional side of the business has really been what's driving the growth.

26% and in Q4.

The activity came from institutional accounts. So that's up from 13% in 2020, when we started to acquire all of these different platform. So we've really been able to increase institutional footprint.

We do see opportunity also in treasuries and Cds those two asset classes within the execution segment have also outperformed a lot of that volatility driven but the toughest thing to do is to get the plumbing into the institutional accounts and I think the deliberate decisions.

We took a couple of years ago to be workflow agnostic to work with a variety of providers to plumb, our platforms into a variety of workflow solutions.

Really bear fruit in 2020, so when volatility came into the market. It wasn't just about your traditional retail trader that was executing muni and corporate it's now about the institutional trader that see this as a diversified platform across multiple asset classes in fixed income.

Yeah.

Thank you.

Question comes from Michael Cyprus of Morgan Stanley Michael Your line is now open. Please go ahead.

Great. Thanks wanted to circle back on mortgage technology with recurring revenues up about 16% mid teens in 2022, I was hoping you might be able to help unpack what portion of that recurring revenue growth was from unit growth from existing excuse me for unit growth from new customers versus wallet share gains from <unk>.

Existing customers are you expanding the services that you're offering to them versus what portion of the growth is coming from.

Versions from transactional to the recurring revenue side and then when you look ahead to 'twenty three with your mid to high single digit.

Growth there on the recurring revenue size and mortgage tech how do you see that mix evolving and your outlook into 'twenty three thank you.

Thank you Michael it's Ben.

It's a mix on it you hit on some of the elements.

In the in the way you asked the question. So our view has been that when you have this significant stable of customers of three lenders that are on are.

They're on our platform and utilizing our services there is a tremendous opportunity to cross sell.

One of the things Thats really driving that recurring revenue growth is the success, we have and continuing to sell our AI platform into that customer base that we have a long way to go.

And being able to penetrate those 3000 lenders and be able to provide them the efficiency that they need now more than ever so we.

I feel good about our ability to cross sell and how we've executed on it to date since we acquired.

The former Ellie Mae business and looking forward ahead into the future everything is new sales. So we continue to have great success, adding new customers.

Customers can come on and utilize.

R R.

Q offering goes analyzed.

Other third party providers. So we continue to have <unk>.

Success, there and we also continue to add new customers onto encompassing just answered a question on that a couple of questions that go here. So we continue to have great success in.

Encompass.

And for all the different segments that we sell through whether it's a startup company, whether it's an established.

<unk> bank originator, whether it's.

Bob.

Bank or credit union or a broker across the entire spectrum. We believe the investments we've made in our platform is very well positioned to meet those clients meet those client needs and as we see a lot of the major <unk>.

Lenders in the U S looking to replace in House legacy infrastructure. We think we're also very well placed to win that business as well.

Those are the key drivers.

As well as its.

Having very relatively low attrition, we are a core platform for operating for operating these businesses, so unless theyre going out of business.

There is M&A thats happening.

We're not we're not losing business.

Yes.

Thank you we have no further questions for today, so I'll hand.

Back to Jeff Sprecher for any further remarks.

Well. Thank you Alex. Thank you all for joining US here. This morning, we are continuing to innovate for our customers and build an all weather business model.

And deliver your growth and so with that I hope you'll have a great day and appreciate your being with us.

Thank you for joining today's call you may now disconnect your lines.

[music].

Yeah.