Q4 2022 Invitae Corp Earnings Call
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Hello, everybody and welcome to the N V tasteful quarter Twitch Twitch Chief Financial results Conference call. My name is Simon and I'll be coordinating Youku state.
If you'd like to ask the question in the presentation you may do so by pressing star one on your telephone keypad.
I would now like to turn your life.
Okay, Luke head of Investor Relations and capital markets to begin. Please go ahead.
Thank you operator, and good afternoon, everyone. Thank you for participating in today's call.
Joining us today are president and CEO , Ken night, and now CFO Rocky one.
Before we begin I'd like to remind you that various remarks that we make on this call that enough historical <unk>.
Including those about our vision and business model the company strategic business realignment.
Future financial and operating results.
Expectations of future growth and reduction in burn rate.
Expectations regarding the exchange and Aquadag vision of fitting out and extension of debt maturity.
And future products services, and our product pipeline and the timing.
Certain points would make will constitute forward looking statements within the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act.
It is difficult to accurately predict demand class services and therefore, our actual results could differ materially from upbeat outlook.
And in some future company performance assumes among other things that we don't conclude any additional business acquisitions.
Desman restructuring all legal settlement.
We refer you to our most recent 10-Q and 10-K in particular to the section titled risk factors for.
For additional information on factors that could cause actual results to differ materially from our current expectations.
These forward looking statements speak only as of the date hereof.
To supplement our consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States.
Our GAAP, we monitor and consider several non-GAAP measures.
We encourage you to review our GAAP to non-GAAP reconciliations, which are available in the press release and in the appendix of the earnings slide deck.
Of which you can access by visiting the investors section of the company's website at IR button Vijay Dot com.
Do they tend to Mark Sue will discuss our financing announcement.
Our fourth quarter and full year highlights.
Our roadmap and portfolio strategy financials, and key metrics for the fourth quarter and full year.
Well, it's all 2023 guidance.
We will then proceed to conclude the call with Q&A.
With that I'll turn the call over to Ken.
Thank you Holly and thank you all for joining us today.
Let me start with the financing activity.
We have just announced steps taken to reduce our debt and successfully extend the vast majority of the near term debt obligations.
Lastly, we will discuss the terms in detail in her remarks.
Overall, we are very pleased with these transactions and they highlight our ongoing commitment to taking the action needed to improve the health of our balance sheet.
I'd also like to thank our investors and other stakeholders for their continued support and confidence in the long term opportunities and Vito.
Now moving on to an overview of our quarterly performance.
Which demonstrated continued operational execution against our realignment plan.
Revenue for the fourth quarter was $122 5 million versus $126 $1 million a year ago.
Reflecting the impact of businesses and geographies that we have exited.
This was paired with solid improvement in our gross margin, but non-GAAP gross margin of 47, 8% in the quarter.
Compared to 36, 5% in Q4, 2021, and 45, 9% in Q3 2022.
Additionally, our efforts to reshape our cost profile continues to gain momentum.
And this is reflected in the reduction of our non-GAAP operating expenses to roughly 111% of revenues compared to 171% of revenues in Q4, 2021.
And 112% of revenues in Q3 2022.
Over the last six months the major initiatives under our strategic realignment have been largely completed.
With our most recent step being the sale of certain assets related to the distributed are you old kitted solution that was executed at the end of 2022.
Collectively this work helped us reduce our ongoing cash burn to $77 million for the quarter, if we exclude certain items.
This is a significant reduction compared to $196 million in Q4, 2021, and our cash burn has continued its declining trend over the past five quarters.
Overall looking at full year results.
We delivered 12% year over year growth in our top line.
non-GAAP gross margin was 42, 5%.
Which was in line with our 2020 guidance.
Our full year cash burn of $510 million also performed significantly better than our guidance.
Note that this reported cash number includes all restructuring and past acquisition related expenses.
As well as the cash inflow from or are you all kitted solution sale.
Later, Raffi will provide some perspective on our ongoing cash burn trends, excluding these special items.
We have also started 2023 in a strong fashion.
Two months into the year, we remain on track to continue to perform well against our objective of extending our cash runway through 2024 and driving toward profitable growth.
Overall, we are pleased with our team's performance and ability to deliver on our goals and we appreciate their unwavering commitment to our patients over $3 million of them, whom we observed.
Our mission and to our future.
So as I just pointed out we have largely completed the major initiatives surrounding our realignment efforts.
We have stabilized that portfolio.
Our ongoing cash burn and profitable growth is the foundation on which we built our business plan for 2023 and beyond.
2023, and will also be a year of investment and innovation into our future.
Fuel our next wave of new growth opportunities.
While we will drive growth and better execution of our core businesses. We must also deliver new capabilities products and services for the long term.
One of the big growth that's for US is in somatic oncology, specifically, our minimum residual disease product PCM.
Which has shown great utility for monitoring and surveillance of cancer.
We are investing in clinical confirmation adoption ease of use and reimbursement in advance of full commercialization.
In addition to our capability and bringing high performing assets to the market.
Another growth driver will be our efforts at integrating and connecting our portfolio, especially.
Especially for non genetics expert adoption.
This will offer us a distinct advantage because we can leverage call points and utilized customer facing digital tools to make it easier for practices and health care systems to use our entire suite of offerings.
Another area of investment will be in our data and patient network platform.
And its utility to provide solutions to multiple partner types.
We remain committed to growing our patient network, which will offer a unique data set with more enriched longitudinal engagement combined with our industry leading variant interpretation.
Lastly, when we enter our acceleration phase.
We will have implemented the differentiated technology and services needed to fully enable our major growth opportunities.
We will be valued for our ability to help put the puzzle pieces together for the patient journey.
And we're building this with a focus on generating positive cash flow.
Now a few words on our portfolio rationalization and strategy.
The chart on the left represents an overview of our product offerings as we closed out 2022.
And where they stand relative to each other based on their revenue size non-GAAP gross margin and growth rate profile.
At the end of 2022, the entire business was much improved from where we were a year ago.
Including the sharp rise in overall non-GAAP gross margins exiting the fourth quarter.
The progress we've made in women's health has been significant and teams are actively replicating those successes and our rare disease product line as well.
In 2023, we're driving the core businesses towards continually growing revenues and expanding gross margin and hereditary cancer continues to be the largest and most profitable business.
On the right side, we are showing how we see the portfolio evolving over the next two to three years.
As new products become material drivers of revenue.
They are depicted by new bubbles of their own.
The medic shows up here as PCM flows into clinical commercial usage and moves toward positive gross margin with the full benefit of reimbursement practices that are coming into play more and more.
The semi market is still nascent as the level and timing of reimbursement for clinical use has still to be solidified.
Yeah, we are encouraged to see the recent progress in the landscape.
As it relates to our own path.
We have taken the necessary steps to secure favorable reimbursement, while preparing for widespread launch activities.
I'd encourage you to watch for additional data and publications on that front.
We have also separated pharmacogenomics PGS from rare disease to highlight our expectation that it will become a more significant part of our business.
Just on improving reimbursement and broader adoption.
A third new bubble is our patient network.
Which is combining our genotypic insights with phenotypic clinical insights to solve puzzles for patient advocacy groups and biopharma and a unique and time saving platform.
All of our portfolio offering along with our strong foundational variant interpretation capability.
Have a role to play in building sustainable growth for <unk>.
Delivering an increased number of solutions for physicians and patients and speeding the development of new therapies.
Before I hand, the call over to Rusty.
I'd like to remind every one of our strategic vision for the business.
Currently we're taking the steps to evolve from one patient one test, which is today's norm in our industry.
Once that expansion is established we can.
Can take the next step and leverage the data from our integrated network, allowing.
Allowing for collective insights for many patients to provide multiple solutions for multiple use cases and customer types.
This is the multiplying value proposition.
And <unk> is uniquely positioned to do this not simply because we think it makes sense, but because patients will demand it.
And we're getting accurate.
Let me now pass it to roughly to go over the financials.
Thank you Ken.
Spend the next few minutes summarizing recent announcement related to that and it's an easy management.
First we have signed a $336 million transaction that might be airfield management.
This transaction effectively addresses 96% of the outstanding convertible that team in 2024.
And sets us on a more stable financing for the years to come.
That doesn't really change 90% of that current 2024 notes with new senior secured notes due in 2028.
Also appetite, 10%, Okay Cody.
In addition.
It's a sudden investors will provide an additional $30 million of capital to help because most of the remaining 2024 months.
A balance of approximately $14 million due in 2024.
We truly appreciate your support and confidence in the company's future.
Additionally, we have now fully repaid the $135 million senior secured term loan.
Early February we had elected to pay down $50 million of that outstanding bonds.
Selecting the $45 million inflow from the sale.
In light of the larger that transaction and our continued cash burn reduction, we're able to pay down the total amount without significantly impacting our overall cost run rate.
By deploying the added capital to extinguishing the stat, we eliminated a total of $135 million debt and associated interest obligations in a rising rate environment.
We estimate that repayments will save us over $15 million of interest expense.
Once completed these transactions will push out our debt obligations significantly reduce the payment due in 'twenty, 'twenty, four and $485 million to $14 million.
Usually managed to stay here.
More importantly will also decrease our total bad that over $165 million, making notable progress in improving our balance sheet.
We estimate that the company will have a pro forma cash balance of $450 million at the close of the transaction.
Based on our current plan, we continue to expect we have a cash runway until the end of 2024. In addition, we also have about $245 million secured that capacity available. After this transaction.
And the utilization of such could further extend our runway.
Needless to say these transactions represent a fundamental change in benefit to our capital structure and the financial health of the company.
Now moving onto our financial results.
In the fourth quarter of 2022 we generated approximately $122 million of revenue and the breakdown was as follows.
$76 million from oncology, including hereditary cancer therapy selection and PCM services offered to pharmaceutical partners.
$20 million I'm, a women's health business.
And Ikea and carrier testing services.
$16 million from rare Dx pharmacogenomics and other testing products.
And patient networks revenue was about $11 million. This includes our sponsored testing programs.
Data management and a number of data partnership programs.
non-GAAP gross margin was 47, 8%, which is an improvement of over 1000 basis points from the prior year, a 190 basis points from the prior quarter.
non-GAAP operating expenses were $136 million compared to $216 million in the fourth quarter of 2021 O $150 million in the third quarter of 2022.
As a result of our realignment plan, we also incurred about $9 million of expenses, including employee separation asset impairment and professional services.
These items in the game from the audio sales were excluded from our Q4 non-GAAP operating expenses in today's presentation.
Moving on to tax performance cash cash equivalents.
The cash and marketable securities totaled $557 million on December 31, 2022.
Compared to $596 million on September 30 is 2022.
Total revenue for the year was $516 million were 12% growth from prior year.
non-GAAP gross margin in the full year 2022 was 42, 5%, which improved by almost 600 basis points over the 36, 6% in 2021.
non-GAAP operating expenses in 'twenty, 'twenty, two was $695 million or 135% of revenue compared to $771 million or 167% of revenue in 2021.
In the full year expenses related to the realignment activities that are you on sale and impairment charges for goodwill and certain IP R&D assets were excluded from the full year non-GAAP operating expenses in today's presentation.
We think that it's important to look at our ongoing pattern trend excluding the proceeds from the Oracle sales and the realignment plan as well as prior acquisition related cash expenses.
In the fourth quarter, our cash burn for our ongoing business was about $77 million.
This was again, a meaningful reduction as compared to the run rate at the beginning of 2022 last quarter.
Stepping to the business metrics.
They got continuity through 2022 will provide the same metrics established prior to last year. However.
However, following our realignment activities and considering the companys current maturity and scale.
We will be considering will be consolidating our metrics to see our measurements that are more relevant to our progress into the coming year.
So 2023 will eliminate metrics associated with active accounts active partners, a new part of that quality.
These are the metrics related to gross margin cash burn on operating expenses will be covered in financial performance discussion.
Our business metrics in 2020. Three will include revenue per patient total number of patients served number of patients available for data sharing as well as variable cost productivity.
Now to the 2022 metrics.
And their portfolio grows our active accounts and active partners were both relatively stable in Q4, primarily as a result of our realignment plan.
However, the number of patients and the ones who are available for data sharing and continue to expand we now have served over three 6 million patients with over 62% of them available for data sharing.
Are you probably vitality has improved slightly from Q3 and return to a similar level to previous quarters.
Revenue per patient measured by total company revenue divided by the number of what are the patients for the corner has continued to increase in the recent quarters as we have focused our browser efforts on achieving higher quality of 11.
Moving to operational excellence.
We're seeing continued quarter over quarter improvement in all categories now.
non-GAAP gross margin variable cost productivity non-GAAP opex as a percentage of revenue as well as cash burn.
Moving to our financial guidance.
On a pro forma basis, we accident at fourth quarter of 2022, with an annualized revenue of roughly $450 million for ugly, meaning business.
But 2023 we're expecting revenue to be over $500 million, representing low double digit year over year growth.
And so far the performance in the first couple of months in 2023 supports that expectation.
We also anticipate the revenue breakdown to be roughly 45% to 48% in the first half of the year and 52% to 55% for the second half.
What's also give us additional color as to the product mix expressed as a percent of total revenue.
From 'twenty to 'twenty, three we expect top line growth to be driven by call point expansion for hereditary cancer women's health industry consolidation.
Higher average price per test due to better reimbursement and revenue management in particular Randy acts.
We also expect our non-GAAP gross margin to continue to expand from the 47, 8% in Q4 to be between 48% to 50%. Thanks to our more focused portfolio higher quality of revenue as well as sustained improvements in life operations supply chain.
And logistics.
Looking at our cash burn, we now expect full year 2023 to be between 250 and $275 million and more than 45% improvement from the $510 million in 2022, driven by our top line growth improved gross margin reduced.
Opex as well as working capital improvement.
And Tony Tony two we incurred approximately $38 million of cash expenses related to our realignment effort.
Which compares favorably to the $75 million original estimate.
2023 we anticipate a small amount of realignment related cash expenses and that's our current guidance reflects largely our ongoing cash burn target.
We're encouraged by our progress today and are confident in our team's ability to deliver.
Back to you Ken.
Thanks Rafi.
There are three areas that summarize our focus.
With me today is moving from abroad somewhat disconnected portfolio of individual tests.
Through an integrated and connected portfolio of solutions.
In that regard patient service valuable and rich data and sales and marketing synergies are how we are building our competitive advantage.
Secondly.
Our business model is evolving to unlock profitable growth.
With customer experience adoption partnership value and clinical insights and solutions as both levers.
Balanced against reimbursement cash flow and affordability.
Early results are demonstrating that we are all in and making great progress.
Finally, we have an incredibly talented group of engineers and scientists that and beat that.
Who have shown they can do big things.
Moving forward, our innovation efforts will focus on offering integrated solutions for our customers. In addition to going after the big bet opportunities with the potential for long term growth and a healthy margin profile for the company.
I firmly believe this is the right strategy and I'm excited about the opportunities ahead of us.
Operator, I'll hand, it over to you for questions.
Yeah.
Thank you if you'd like to ask a question. Please press star followed by one on your telephone keypad now and if you change your mind Peach per store from Apache when preparing to ask your questions. Please ensure your line is on mute.
Our first question comes from page seven from Morgan Stanley I, just you alone.
Go ahead.
Hi, This is Gavin on for Joe. Thanks for taking my question. So in your 48% to 50% gross margin guidance for 2023, how should we think about this trending throughout the year.
Yeah, we have a you know the 48.
50% is a average throughout the year and we exited the quarter Q4 was 47 eight and so you should be pretty smooth.
Improvement throughout the year.
Okay.
Okay, great. Thanks, and then just in terms of an Ips coverage, where do things stand in terms of winning back share, particularly in California. Following the legal decision. Thanks.
Yes.
I'll I'll take a stab at that I mean, our nics business has grown consistently throughout 2022.
And we've been really pleased with the progress that we've made there in terms of market penetration.
We continue to be optimistic about the developments that have happened in California relative to.
The injunction that was in place and so we still are.
So bullish on our ability to grow our.
Our presence in California, as well as the rest of the country.
Okay.
Oh, great. Thank you and then just one more for me on a the Morehouse partnership. So just curious what other efforts are you making to address health care disparities among underrepresented groups beyond Moorhouse and then looking longer term how do you plan to integrate this into your offerings.
Yeah, So let me start with the Morehouse.
Partnership we are extremely excited about that opportunity.
First of all obviously as you mentioned too can.
To be able to bring genetics into what are historically under represented populations in terms of use of genetic information.
Moorhouse also is it helps us with understanding the community health setting a little bit better than we do today. So we see it is actually serving both patients and clients better than we are today.
Had.
Studies and partnerships with.
Other diverse populations across the world and so we are not just newly starting this effort, but moorhouse gives us a really focused effort intended upon.
The underrepresented populations here in the United States.
So it's really a part of our the way we see this unfolding and how we think we can serve.
The world better than we had before as we think about our or some.
Part of diversity equity inclusion in how we think about our ESG efforts and sustainability. This is really a part of the core of <unk> and we're excited about the work that's going on.
Simply put more house.
Yes.
Okay, Great that's great to hear thank you.
Thank you.
Our next question comes from Andrew <unk> of William Blair. Your line is now open. Please go ahead.
Hi, This is Justin on the line for Andrea.
Maybe just on the revenue guidance here I think in the past you've talked about sort of a 15% to 25% baseline growth rate.
Recognizing there are some moving pieces there with the baseline, but just wondering if you could talk about those and maybe help us parse. This guidance that you gave today versus those prior common space.
Yeah.
Yeah. This is Kevin I'll start.
Uh huh.
Way, we view the 15% to 25% as we still are confident that that's that's really how we will see our revenue growth play out at least for the next several years now as we looked at 2023, obviously, we're coming out of the realignment.
<unk>, we are constantly we have a strong base of clients and customers.
There's obviously still some macro economic uncertainty still could play itself out as well, they're gonna be recession is it not.
So I think as we looked at the our best view of 2023.
Feel pretty pretty confident that what we're signaling in terms of low double digit growth is is how we see it best today.
With all of those inputs being considered that's how we see it best of day, but it doesn't change our long term view on on how the business is going to unfold.
Got it okay. Thank you.
Another question. We have is we're wondering if you can talk about some of the investments that are needed on the data and patient networks Hum.
How should we think about those being done organically versus you guys potentially forming some partnerships.
I'll, let mark you start with that she's actually meeting our patient network. Our efforts more personally so I'll, let I'll start and then I'll maybe add some comments.
Yeah. Thanks for the questions asked and no patient in network and data business is one of the two big bets, we have light as Cam mentioned in his no today and previously as well we are we're very excited about the potential of.
The space and we have some unique capabilities.
Oh, the $3 6 million patients, we have so far tested and over 60% of them deep device visibility.
And then the ability to work with them to share their data. So that's a very deep.
Database and data source and also we have a very significant variant interpretation capability throughout the decade of maybe paste product development effort and in addition to that with the you know our acquisition of the citizen platform has added a very.
New capability to our entire data and patient network capability.
<unk> talked about and it does.
Adding clinical record into our.
Genetic data source, but in addition to that you know as you probably have seen we have announced and executed a number of partnerships. So that's you know from our combined.
In house capability, our combined strengths with our with the.
Citizen networks as well as the partnerships that we're very excited about our future.
Okay, great. Thank you that's it for our questions.
Yeah.
Yeah.
On the next question comes from Matthew Sucks Goldman Sachs Matthew in London.
Please go ahead.
Hi, This is easy because I'll ask here on for Matt Congrats on the debt transactions.
Just a couple for me so historically in oncology you've been the provider that's driving more affordable access to genetic testing.
You look to commercialize your PCM franchise and given you have.
A more differentiated product, but the tumor informed do you believe you'll be able to charge a premium or do you continue will you continue to compete on price in that and then if it's.
More the former what kind of impact will that how about like long term gross margin.
Yeah. This is Ken I'll take a stab at that.
First of all.
Our commitment to lower prices and make a genetic information more affordable and accessible is not wavering.
We still believe that the path to genetic information being mainstream.
For the World is is enabled through affordable and accessible genetic information.
As it relates to the our market presence in oncology I would describe it as.
We're going to have we believe we're going to have a great product that's going to be hum.
Technically superior to most.
And then we will.
Representative.
Value.
Return in terms of revenue for that product and as we built our business case together, it's built and consistent with our plan to drive down prices in the marketplace, but it's also built on the foundation of profitable growth and so without going into specific detail, that's how I would summarize.
Our plan to commercialize our PCM.
Okay, Great that's super helpful.
And then also as you look to commercialize that I know youre doing like Biopharma activities right now, but as you look to commercialize that.
What does that timeline look like and will there be an uplift in gross margin as you're making those investments.
Yeah. So if you refer to the slide that we included with you.
You see that as we see the next couple of years playing out somatic.
As shown.
It probably at lower gross margins than it will be long term and so that's really the kind of the transition of getting the product into the marketplace getting solidified reimbursement in play.
And growing commercial adoption.
So, but what we believe and what we've seen from the products that are in the market places that this is going to be an uplift accretive to gross margin for us in the long term.
And so we've got some transition period to get there, but it's going to be accretive in gross margin.
That's how we see it.
Okay, Great and then any like investments in like operating expenses as you're ramping that up.
Well you know what are the investments that I talked about to get clinical utility to get adoption to to work on reimbursement all of those are operating expense investments.
They're not they're not kind of capacity related there are really about how we are going to get the product into the marketplace. Those are built into our 2023 plants.
Okay, great. Thank you so much.
As a reminder, if you would like to ask a question. Please press star followed by one on your telephone keypad now.
Our next question comes from Jeffrey Cohen of Ladenburg Jeffrey Your line is down. Please go ahead.
Hi, Ken and rock shoes. Thank you in particular of course huge.
Hey, Jeff Chu from Orange, So firstly could you talk a little bit ago.
<unk> disease and other areas.
Calling out that as your high school platforms could you talk than it is specific drug rooster, who drove 2023.
Yeah, I I rare disease as.
As we focus a lot of it in pediatric rare disease and it's we've got some great products that are that are helping solve the puzzles for.
For these young these young folks as they're going through this this diagnostic Odyssey.
And what we've also seen is rare disease has become a great partner for our patient network that we're building that whilst he talked about a matter of fact, we launched a rare disease patient network last year.
And many of the partnerships that we've been we've been.
Billing with the with the pharma teams have been in things like epilepsy, pediatric epilepsy things like that and so our rare diseases of product for US is is growing.
And we're.
We're working on really improving our reimbursement and our and our and our average payment per test and it's gonna be a great product in our portfolio.
And the teams are completely focused on on on.
Really driving the improvements in the overall health of the business there, but we've got great customers. We've got great product. We've got good partnerships that are growing.
We just got to put those things all together and make sure that we have a healthy business that can reinvest in itself by the way.
Got it.
Can you talk a little bit about.
The general nature of coding and payers. This year I know that you and others in our space continue to kind of personal on the payers with some meaningful data and efficacy et cetera. So could you talk about how that may pull through 'twenty, three 'twenty, four where you'd anticipated on some of the testing fronts.
Yeah, I, probably wouldn't want to go into specific.
Product lines, Jeff what I would just say this is that.
You know it's a.
It's a and ongoing effort to stay in and great communication with the payer community. We've had the we've had the benefit of a guideline expansion. If you remember back in 2022, we had.
Ips expand it to be covered for average risk pregnancy.
Just had some guideline.
Guideline expansion for breast.
Breast cancer usage, a genetic testing for breast cancer patients.
Colorectal cancer patients I mean, so we're getting the support.
And the guidelines space and we also then take our.
Hum.
Access team to work with the with the payers to get.
Support and reimbursement.
Those things for those tests as we are we are doing great service on behalf of the patients were just trying to get and by the way. We are unapologetic about this we're just trying to get a.
Fairly compensated for the tremendous value that we generate today.
And we're working with our payer community.
We have teams that are working with them every day.
And we will continue to do that not in the adversarial type of an environment, but in a collaborative environment, where we believe we have support for what we're doing and we just want to garner their support and reimbursement.
The other university for sale kind of any commentary Bob I know they received guidance from us for as you were getting the growth.
Some new product areas to think about boots, all organic is there any M&A stance there for 'twenty, three or you're surely locked and loaded on the current platform and portfolio. So you haven't checked with plans to bring those on the telephone.
Yeah, I mean, what we've what we've guided to and when we talk about 2023 is what we are.
Hope to do with within our own control.
And that's what we're really focused on I mean, we really have done the team has done a tremendous amount of work I mean, if you think about what has taken too.
Two two.
We do our cost profile to extend our cash runway to 2024 two.
To reset the product portfolio and end up with.
Where we're doing business, it's really been quite a quite a bit of outstanding work on behalf on behalf of the team and 'twenty three is really where we're going to put those things in the emotion and really deliver onto.
Onto the next phase, we call that our execution phase and so that's what we're focused on.
Hum.
Can't predict the future, but I can tell you that that's the that's the arena that we're focused on for 'twenty three.
That's super helpful. Thanks for taking our questions.
Youre welcome.
Okay.
Oh no no more further questions I'll hand back to the management team for any closing remarks.
Well as always thank you everyone for joining us.
I appreciate your continued support and look forward to sharing more updates in the near future have a great afternoon and evening. Thanks a lot.
Yeah.
Goodbye. This concludes today's call. Thank you for joining you may now disconnect.
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