Genesis Healthcare Inc. Q4 2022 Earnings Call

Speaker 1: Jen, we are confident that our reach, innovation capability and discipline execution can deliver on that strategy and will sustainably deliver long-term profitable growth and increasing shareholder value.

Speaker 1: Let me quickly recap our year. For fiscal year 23, we delivered another year of organic growth, our fourth consecutive year of growth in consumer cyber safety.

Speaker 1: We delivered mid-single digit growth in cyber safety bookings and revenue, and exited the year on a $3.7 billion revenue run rate up from $2.4 billion three years ago.

Speaker 1: During that period, we considerably expanded our scope across our cyber safety pillars, security identity and privacy.

Speaker 1: and became truly global with 60% of our customers now from outside the US.

Speaker 1: We also expanded our reach with our vast capabilities in freemium and free user base in the hundreds of millions.

Speaker 1: Gen, with its trusted brands, omnichannel expertise, and rigorous execution, is well-positioned to expand the adoption of cyber safety across the globe. We have over 38 million direct-paid customers as we exit fiscal year 23, up from 20 million three years ago.

Speaker 1: Despite the pressure on our direct customer accounts in a post-COVID environment, which saw a sequential decline of 180,000 in Q4,

Speaker 1: Our direct business actually grew single digit in fiscal year 23. Our direct customer retention rate ended the year at 76% and our annual ARPU was nearly $87 as we exited fiscal year 23.

Speaker 1: In two quarters since the close of the Avaaz acquisition, we have increased our overall annual RPU by $3.

Speaker 1: and our overall retention rate by one point, a testament of the increased value we are providing our customers with our expanded product portfolio offerings, the membership adoption and the increased loyalty.

Speaker 1: Both metrics, ARPU and retention rates, improved sequentially in this last quarter and are confirmation of the value creation thesis at the core of our merger with Avast.

Speaker 1: In addition to 38 million direct bid customers, we also protect over 26 million indirect customers with solutions sold through partners.

Speaker 1: In fiscal year 23, indirect customers grew over 1.5 million with about 400,000 sequentially added in Q4.

Speaker 1: Upon the revenue delivered its third consecutive year of double-digit growth for fiscal year 23

Speaker 1: And we continue to see tremendous opportunities to reach more consumers via diversified channels in our partner business.

Speaker 1: Our employee benefits channel again grew double digits, accelerating in growth as employers recognize the growing demand from the employees.

Speaker 1: Identity protection is becoming a staple offering in benefits packages, just like healthcare and life insurance.

Speaker 1: Our integration efforts helped us deliver another point of sequential operating margin improvement in Q4, reaching 57%. In fiscal year 23, we scaled operating profit to $1.8 billion, up 24% the year over year, and more than doubled compared to three years ago. This profit margin and the resulting unlevered free cash flow gives us great confidence that we can navigate to the short-term volatility and uncertainties of the global economy.

Speaker 1: Product integration, broadly defined, is what remains in front of us and is well on the way.

Speaker 1: We see it as an opportunity to accelerate our march towards our vision of cyber safety, that is, digital life-centered, tailored to you needs and easy to use.

Speaker 1: This requires a unified and simplified product architecture.

Speaker 1: This is a key enable of our revenue synergies in fiscal year 24 and 25. We still have work to do here, but with our comprehensive set of products, we believe these changes unlock not only those midterm opportunities, but also position us perfectly for the long term in cyber safety and in trust-based adjacencies. You've earned me talk time and time again about all of our opportunities, but let me summit up briefly.

Speaker 1: and I believe coming from cyber safety is much more accessible, engaging, and easy to use for everyone.

Speaker 1: that will undoubtedly continue to grow our customer feel and loyalty.

Speaker 1: To start, and in particular within the Avast business, we can improve the customer experience and fully integrate our customer journey.

Speaker 1: I've had retention improve two points in the last six months, and we believe the potential is at least 10 points improvement as we incorporate user-focused changes.

Speaker 1: Secondly, customers always focus on value, and we have a tremendous opportunity to show them the value of our cyber safety offering and to continually add to it as the needs evolve and the threats increase.

Speaker 1: The move towards protection of identity privacy and the protection of your full digital footprint will continue.

Speaker 1: We have increased monthly ARPU 26 cents or 4% in the last 6 months and our long-term objective is to move above $8 where we were with Norton Lifelock adjusted for a new geographical mix. Finally, we know that customer count is a critical metric for our long-term success. In addition to continued growth in indirect customers, we have increased monthly ARPU 26 cents or 4% in the last 6 months and our long-term objective is to move above $8 where we were with Norton Lifelock adjusted for a new geographical mix.

Speaker 1: where a portion of the market is moving to. We know that in the long term, we will grow our customer materially, and we believe that our initiatives in mobile, emerging markets, and optimizing marketing spend amongst a few will help us stabilize the trend in direct customer account. And ultimately, we turn it to growth. And with that, let me pass the floor to Natalie. We'll talk about our details.

Speaker 2: This school year 2023 was another year of progress towards achieving our long-term $3 EPS target and was our fourth straight year of organic growth as a pure play consumer cybersecurity company.

Speaker 2: As we successfully closed our merger with a vast and integrated as one gen company, we finished fiscal year 2023 with over $3.3 billion in total revenue, growth of 19 percent in USD, and 23 percent growth in constant currency. When including vast historical financials, Cyber Safety Revenue grew 4 percent year-over-year in constant currency and that's the dynamic macro environment. We challenged ourselves to accelerate the execution of our committed cost energies and remain disciplined in our investments, which enabled us to expand full year operating margin to 55 percent.

Speaker 2: up 220 basis points year-over-year. This growth and discipline led us to deliver a $1.1 in EPS, a 4% from the prior year, and up 10% in constant currency. After incurring a significantly higher amount of debt cost than anticipated at the time of the deal announcement. Our customer base is resilient with over 38 million

Speaker 2: increased value to our direct customer base with new security, identity, and privacy offerings. Our business with partners continues to grow and we've expanded together to a total paid customer base of approximately 65 million.

Speaker 2: We are enabling growth with the continued evolution of our product portfolio and introduced over 10 new products and features this year to provide best-in-class protection and unlock new capabilities for our customers.

Speaker 2: Turning to Q4 performance, Q4 was our 15th consecutive quarter of growth, and our results reflect another quarter of consistent execution. We exceeded our revenue guidance and came in at the high end of our EPS guide.

Speaker 2: We also crossed $1 billion in bookings for the first time with Q4 bookings up 29% in USD and up 32% in constant currency.

Speaker 2: When including a vast historical financials, cyber safety bookings grew 2% year over year in constant currency.

Speaker 2: Q4 non-GAP revenue was $948 million, up 32% in USD, and up 35% in constant currency.

Speaker 2: This also includes an unfavorable FX headwind of $21 million year over year, or three points of growth. When including a vast historical result, cyber safety revenue grew 3% year over year in constant currency.

Speaker 2: Direct revenue was $831 million, up 32% in USD and up 3% when including Avast historicals.

Speaker 2: We continue to drive higher value and loyalty with our existing customers as both R-POO and Retention improve.

Speaker 2: As I referenced above, Monthly Direct ARPUS $7.24 USD, an expansion of $0.15 quarter of a quarter driven by our cross-sell and upsell efforts, and as our identity and privacy offering screwed double digits in the quarter.

Speaker 2: Ending direct customer count was 38.2 million, a decline of 183,000 customers quarter over quarter, a trend we are working hard to reverse.

Speaker 2: Lower web traffic demand continues to impact the customer acquisition funnel despite improvements in conversion.

Speaker 2: We continue to invest in a diverse mix of marketing spend to reach new audiences, drive more traffic to our sites, while dynamically optimizing the channel and geographic mix to drive the highest returns. It is imperative that we continue to focus on improving retention in our existing customer base. Our aggregate direct retention rate improved one point quarter over quarter.

Speaker 2: ago we expect traction with revenue synergies to be measured directly through our POO and retention improvements over the coming quarters to support our bookings and top-line growth expectations.

Speaker 2: Two quarters later we have expanded monthly ARPU by over 25 cents, translating to three dollars of increased annual ARPU.

Speaker 2: You will continue to see us expand our ARPU and retention rate over the coming quarters.

Speaker 2: Moving on to partners, partner revenue was $100 million in Q4 delivering 35% growth year-over-year as reported in the USD and 9% growth when including a vast historical result.

Speaker 2: This was our third consecutive year of double-digit revenue growth in our partner business as we continue to scale our identity offerings through key channels like employee benefits, telcos and breach protection.

Speaker 2: With our broad reach and Omni-Channel Strategy, we will continue growing our pipeline, scale and nurture existing partnerships, and build further growth momentum. Rounding out our revenue, our legacy business lines contributed $17 million in the squatter, and now make up less than 2% of our revenue.

Speaker 2: We expect Legacy to continue its decline at a similar pace as Q4. Turning to profitability, Q4 operating income was $541 million, up 38% year over year.

Speaker 2: We expanded operating margin to 57% as we continue to make strong inroads to the 60-plus margin framework we've outlined in our long-term model.

Speaker 2: In Q4, we reduced our overall operating expense profile from 31% to 29% of revenue sequentially, while maintaining gross margins above 86%.

Speaker 2: Since the close of the merger, we've rightsized our organization structure to under 3,700 from approximately 4,500.

Speaker 2: driving structural reductions in our operating model.

Speaker 2: We remain well on track to achieve cost synergies of over $300 million as we exit fiscal year 2024. Ultimately, our accelerated pace and track record of strong execution will unlock more operating leverage, enabling us to selectively reinvest back into growth and innovation in fiscal year 2024 and beyond.

Speaker 2: Interest expense related to our debt was approximately $160 million dollars in Q4, an EPS impact of 19 cents, and a 16 cent headwind compared to last year.

Speaker 2: Our non-gap tax rate remains at 23% and our ending share count was 644 million down 7 million quarter of a quarter reflecting the weighted impact of last quarter's share report. Repurchases.

Speaker 2: Turning to our cash flow and balance sheet, Q4 operating cash flow was $324 million and free cash flow was $323 million, which includes approximately $177 million of cash interest payments this quarter.

Speaker 2: This brings our total fiscal year 2023 free cash flow to over $750 million, which includes $381 million of interest paid.

Speaker 2: interest expense paid approximately 120 million dollars of costs related to the Avast merger and 43 million dollars of cash restructuring expenses.

Speaker 2: Our ending cash balance is $750 million.

Speaker 2: Turning to capital allocation, we remain intentional and balanced with our capital deployment. In fiscal year 2023, we returned over $1.2 billion of capital to shareholders, with approximately $900 million share buybacks and the rest in the form of our regular quarterly dividends.

Speaker 2: In Q4, we paid $80 million to shareholders in the form of our regular quarterly dividend of 12.5 cents per common share. For the next quarter, Q1 Fiscal 24, the Board of Directors approved a regular quarterly cash dividend of 12.5 cents per common share to be paid on June 14, 2023 for all shareholders of record as of the close of business on May 22, 2020.

Speaker 2: near-term maturity is due in the next two years.

Speaker 2: With our strong cash flow generation and disciplined capital deployment, we will continue to utilize our capital to deliver EPS expansion.

Speaker 2: with expected net leverage of approximately 3.9 times within 12 months post-divast deal close.

Speaker 2: and remain committed to the target of approximately three times over the long term.

Speaker 2: We will maintain a balanced approach, commit toward regular dividends, pay down debt, and deploy opportunistic share buyback.

Speaker 2: Now turning to our fiscal Q1-24 outlook.

Speaker 2: For Q1, we expect non-GAAP revenue in the range of $940 to $950 million, translating to low single-digit growth in cyber safety expressed in constant currency.

Speaker 2: We expect Q1 non-gap EPS to be in the range of 45 to 47 cents per share as cost energies are partially offset by near-term increased interest expense based on current SOFR forward curves.

Speaker 2: For the full fiscal year 2024, we expect bookings growth in low to mid single digits.

Speaker 2: Scaling through the year as we make progress on our key metrics.

Speaker 2: We remain focused on driving our long-term objectives and are still targeting to exit fiscal year 25 on a $3 annualized EPS with the following underlying key assumptions.

Speaker 2: Cyber Safety Business to grow mid-single digits.

Speaker 2: Post-synergy structure of 60 plus percent operating margin.

Speaker 2: Free cash flow deployed towards debt pay down and share buyback.

Speaker 2: So for curve trends, indicate rates below 3% exiting fiscal year 2025.

Speaker 2: The looted share count expected to be around pre-evast merger levels.

Speaker 2: In summary, we are closing out this fiscal year with a strong sense of accomplishment. We have successfully introduced Gen to the world and are excited to scale as the leader in global cyber safety protection. Our financial model remains resilient, powered by our best-in-class products and technologies.

Speaker 2: on executing our plan.

Speaker 2: and will be strategic and intentional in where we invest to maximize long-term shareholder value.

Speaker 2: As always, thank you for your time today and I will now turn the call back to the operator to take your questions. Operator? Thank you.

Speaker 3: If you would like to ask a question then please press star, loaded by 1 on your telephone keypad now.

Speaker 3: If you change your mind, please press Starflows by 2. Or prepare to ask your question and give it sure that your phone is on mute as fluently.

Speaker 3: from Saket. Kalia from Barclays. Saket please go ahead.

Speaker 4: Okay, great. Hey, good afternoon, guys, and thanks for taking my questions here.

Speaker 4: Great, hey, good afternoon guys, and thanks for taking my questions here. Okay, if I could.

Speaker 4: Hey, Vincent. Vincent, maybe first for you. Great to see the improvement in retention. I think you said it was one point for the company overall at quarter to quarter. Great to see that. Can you just maybe talk us through what's driving that in your view? And maybe as part of that, just touch on what's happening within the Avast base from a retention perspective.

Speaker 1: Absolutely, and as you know, we don't like to share our operational know-how with everyone in the world and like to nurture that as our own process IP if you want, but let me give everyone here a few examples of what we've been doing. So as you mentioned, overall company retention improvement 76% plus one point is driven by two things. One is curbed productivity.

Speaker 1: continued stable retention in Northern and LifeLock brands, and then an improvement of two points of the Avast retention. I do mention the stabilization of our retention in the brands of Northern and LifeLock, which as you know are industry leading retention rates, because it's no small feat. It does not happen by itself. We're really working and developing.

Speaker 1: all of our values for the customers there. So on the Avaaz side, just as a reminder, I know you know, but for those on the call, Avaaz retention rate was about 20 points lower than the Norton and LifeLock business, around 55%, which is 85% for Norton and LifeLock.

Speaker 1: And we had already acquired before the acquisition of Avas, experience in retention with premium business models such as Avira, which was also driven slightly above 80%. And so we had a plan to identify the operational opportunities. We identified about half of the gap to be.

Speaker 1: We made a bunch of operational changes. I'll give you a few. We combined our renewal team for all of the brands as one team. We separated the renewal activities with the customer journey activities with customer journey focused on education and understanding the communication and touch points value.

Speaker 1: Lauter and Laflok has an in-house engine, Avast was outsourced and so starting to share best practices and making sure we can apply the quick wins we had identified. Those are the operational work if you want in progress. It will take a few quarters as we continue to evolve. Overall, once the operational bucket if you want is being tackled.

Speaker 1: and fully digest it. Consciously increasing the value to the customer, moving them to high value, full portfolio of cyber safety, moving them to the platform view, using the customer journey team to drive the usage and engagement of the functionalities, making sure they understand.

Speaker 1: the full potential of the protection that the customer has bought, all of those are activities that create value. And we are cautiously optimistic that that improvement will continue over the next few quarters.

Speaker 4: Got it, got it. That's super helpful. Natalie, maybe for my follow-up for you, I thought it was great to see the delevering in the quarter. I think it was about $300 million. You correct me there from wrong. But can you just maybe talk through how you are thinking about that pay down?

Speaker 2: this year and maybe related to that, how you're thinking about interest expense, even just broad brush? Yeah, sure. Hi, Sockett. Just for a reminder for everybody else on the phone, so we did, you know, since the funding of the deal, we did 460 million dollars of debt repayment. And repayment 400 of that, including the April .

Speaker 2: voluntary payment, $400 million was voluntary. Yes, with $7 billion of debt at an increasing and volatile SOFR, with Q4 SOFR up to 5%, it's a meaningful challenge for us to overcome.

Speaker 2: If you just extrapolate the Q4 interest expense, that's fixed to $700 million on an annual yas basis of interest expense. That's $75 to $80 pennies of EPS. So yes, it's a huge headwind slash challenge to overcome.

Speaker 2: And if you looked at that in isolation, combine that with our stated targets on leverage over the long term, the cost, the expense, you know, that and the level of debt that we've got, that would point you to deploy as much capital as you possibly could to get that paid down.

Speaker 2: But we know we have multiple levers in our business. We know that we have expressed a balanced capital allocation.

Speaker 2: And if you look at the $17 stock price that we've got, and you look at our strategy and vision on where we're going over the long term, I personally believe that we're massively undervalued. And so that makes the share buyback capital deployment very, very important.

Speaker 2: And so when we talk to you guys about a balanced approach on our capital allocation, it's exactly that. Both of them are challengers of each other, but both of them are incredibly viable and critical to drive our business and to achieve our long-term objectives. So what you'll see us do is we'll do a go-forward basis, whether you specifically call it Q1 2024 or over the long term.

Speaker 4: is strike that right balance looking at all of the dynamics that we've got in our business. Got it, super helpful. I'll get back in queue, that was very helpful. Thanks guys.

Speaker 4: balance looking at all of the dynamics that we've got in our business. Got it. Super helpful. I'll get back in queue. That was very helpful. Thanks, guys....

Speaker 3: Thank you. As a reminder, to ask any further questions, please press star, followed by one on your telephone keypad. Our next question comes from Angie Song from Morgan Stanley . Angie, please go ahead. Hi, thank you guys so much for taking my question today.

Speaker 2: Norton LifeLock versus Avast for this quarter and how should we think about this dynamic as we model out fiscal year 24. Thank you.

Speaker 1: Thanks for your question. So as you mentioned, Q4 sequential declining the direct customers is about 180,000. The lowest of the year, so we see the trend stabilizing and we're working very actively our plan to as we said for stabilizing and then returning custom accounts direct customer accounts.

Speaker 1: The quarter before it was the reverse, so we also said, quarter in, quarter out, just be careful not to drive trends within the brands. We see the overall tensions to be about the same across the globe, but being more focused on the security side versus the identity side, we were slightly more focused on security.

Speaker 1: And then I would say Avast, because we improved retention two points, of course continue to reduce the gap if you want and we're very confident that we'll return them to gross once we fully bridge the 10-point retention of Avast versus Norton.

Speaker 3: So that should give you some color of the dynamic. Great, thank you. And just one more, if I may.

Speaker 5: So on long-term targets, I know that Avast acquisition definitely brought some complexity into the equation and given the recent macro backdrop that caused even more uncertainty. Could you just remind us what your confidence level is now as we have a little bit more visibility into fiscal year 24?

Speaker 1: We can't wait to see how we can get the company to work in the company. It's a similar business model with very complementary strengths. We focus on the opportunities that have asked us to bring. We talked about the complementary of the product portfolio. They bring in

Speaker 1: a more strength on the privacy side. Combined with identity that now allow us to offer a cost-sick-fired million-paid customers and hundreds of millions of free users, full-ciber safety, and we've given you some proof points of us being on track to that. We said we can go into bolster our technology with us and you'll hear more about

Speaker 1: We also said that we have some revenue synergies and the advanced retention rates is the beginning of that. You'll see more of that in 24 and 25 as we return to growth using those revenue synergies. And then the cost synergies where we delivered only two-thirds of the 300 million plus promises.

Speaker 1: Now, where is the complexity coming from that you may have mentioned? Yes, we did not anticipate the cost of the debt. Frankly, when the time we signed the deal, it was a software being a zero and today is a 5%, not that you mentioned that, but we will deliver it quickly with our cash flow. And if I follow you guys, investors can really predict in software 3% by exiting fiscal at 25.

Speaker 1: By then, you will see the full realization of those synergies. So our focus is really on the opportunities that this acquisition is bringing to us. And I'll pass it to Natalie for the confidence in the bridge and the different levels. Yeah, I think you heard about the majority. I would just summarize it into from a growth perspective.

Speaker 2: and our priority to expand our reach globally, really focusing on international and bringing, you know, different products and services, different vectors to new global markets. And then loyalty is about looking at how we can best service our customers, focus on NPS, but also increase the...

Speaker 2: that is going to be incredibly strong, a strong feeder into the $3 EPS. We also said, don't forget, you know, back when we came out with our analyst day, we said M&A could be also considered as an accelerator as we continue to generate very, very strong cash flow.

Speaker 2: ladder all that up, you know, from a whiteboard perspective or just the back of the envelope, it's not hard to see how you get to the $3 EPS target over the timeframe we've provided.

Speaker 3: Thank you so much. As a final reminder, to ask any further questions, please press star plus one on your telephone keypad.

Speaker 3: Our final question is a follow up question from Saket Callier from the Barke Police. Please go ahead.

Speaker 4: Okay, great. Hey guys, me again. Sorry, I just had a couple more follow-ups. Natalie, maybe for you. Are those great to see the RPU expansion quarter-requarter? Maybe a question for you. Where do you think that can go over time? And sort of how do you think about that?

Speaker 2: Yeah, I think we're just getting started, honestly. I think with the expanded portfolio that we now have as Gen and with the express desire and strategy and commitment to invest in more and more innovation, I'm confident that we're going to continue to bring great products and services to market that.

Speaker 2: Honestly, I think it will be easy sell to our customer base.

Speaker 2: And so where specifically our approval will go, I'm not sure. It's going to be a balanced or a dynamic approach, depending on markets, customer cohorts, the source of those customers, et cetera. But if you even look at the progress we've made already,

Speaker 2: with the equivalent of a $3 ARPU expansion, just start applying that to more and more and more of our customer base.

Speaker 2: In my opinion, we're just getting started. We have a ton of space to increase our ARPU as we expand and really bring to market that innovation, but then also expand our reach across our existing 38 million. And as we bring in new customers as well, just be able to expand there as well.

Speaker 4: Got it. Got it. Maybe for my follow-up for you, Vincent, listen, I mean, we're clearly trying to control what we can with margins and operational improvements in retention. Of course, the other part of the net ad equation is new customer acquisition.

Speaker 4: And so maybe the question is, for you Vincent, what can you do on the new customer side to sort of continue the stabilization in that as we've seen, but then maybe turn that corner and reverse the trend? Yeah, and if you allow me to think slightly differently.

Speaker 1: ourselves is what we do, is what is in our DNA and in our culture and we'll continue to do that very very well. The value we drive and the possibility to charge representing that value coupled with operational discipline is what drives the margin as you know it's a

Speaker 1: it's a very high margin business. When it comes to the growth and how we grow our business, we really for us have the three buckets. Natalie mentioned the RPU and support it with innovation. How much more do we add to the value of the portfolio? And Natalie is right that in some way it's not like a daily focus. I told you the first time I talked to her,

Speaker 1: So that's number one. Can we later on get to a $10 per month or more? Absolutely, but it will come from added value, new adjacent services, the ability for you to manage your digital reputations, that our services are moving beyond what your core cyber safety membership brings.

Speaker 1: The second one, of course, is the retention, right? As the second bucket for the growth, the more we retain, the more we satisfy you as a customer, the more value we'll be able to drive for the business. And there you've seen some of the progress. I talked about the operational view. Our whole focus here is around the customer journey, giving them peace of mind in this hacking world that can need to evolve and is actually pretty scary.

Speaker 1: And then the third one is about bringing new people to cyber safety, which is the acquisition side. And it will be a real trade-off between those three activities. Depending if you get faster progress on one of those three buckets, you may have pressure on the other metric, but overall, the value towards our long-term mission will continue to progress.

Speaker 1: On the Let's Add, the first one is you retain more and then you try to acquire new customers. We now have a full set of capabilities from premium to product sales to membership sales through all the countries we can go after. But we know that we're not perfect in every one of them and we still have more opportunities.

Speaker 1: We're doubling down into mobile. Everything we do needs to be mobile. That's why digital life is the first touch point today. Even though you still use your desktop and all of that, you may want to act and interact through mobile. Mobile is a big channel for us in terms of growth. We know that some customers will want their cyber safety to be part of other solutions, financial solutions.

Speaker 1: be returning in a balanced way on growth on all three of the buckets I've just mentioned.

Speaker 6: Thank you.

Speaker 3: At this time, as there are no more questions, I will turn the call back to Vincent Pilett, CEO for closing remarks.

Speaker 1: Excellent, thanks Lauren. And I want to thank each Gen employee for their hard work and for embracing and directly managing through so much change.

Speaker 1: Our entire team is driven to protect and advocate for our customers. And we do not take for granted the millions of people around the world who trust us to help them safely navigate the complex digital world.

Speaker 1: We have a strong culture of innovation and execution. We have a winning strategy and we will continue to execute to drive profitable growth and create long-term value for all our stakeholders. So thank you for joining our call today and I look forward to talking to you soon. This concludes the conference call. Thank you.