Rimini Street Inc. Q1 2023 Earnings Call
Speaker 1: You.
Speaker 2: Good day and welcome to the Remini Street Q1 2023 earnings call. At this time, all participants are listening mode. After the speaker's presentation, there will be a question and answer session. Instructions will be given at that time. As a reminder, this call is being recorded.
Speaker 3: I would like to turn the call over to Dean Paul, Vice President and Vest Relations. You may begin. Thank you, operator. I'd like to welcome everyone to Remini Street's first quarter, 2023 earnings conference call. I'm the call with me today is Seth Raven, our CEO and President and Michael Prieka.
Speaker 3: our CFO . Today we issued our earnings press release for the first quarter ended March 31, 2023, a copy of which can be found on our website under investor relations.
Speaker 3: A reconciliation of GAP, tonight GAAP financial measures, has been provided in the table following the financial statements in the press release.
Speaker 3: Now, before taking questions, we'll begin with prepared remarks. With that, I'd like to turn the call over to Beth. Thank you, Dean, and thank you, everyone, for joining us today. Before we review the quarter results, I wanted to remind everyone that Remini Street has grown and evolved from a single-service company into a global provider of end-to-end enterprise software support, products, and services. The leading third-party support provider for Oracle and SAP Software, and a Salesforce and AWS partner in SaaS and Cloud markets respectively.
Speaker 3: The company has operations globally in 22 countries and now offers a comprehensive portfolio of unified solutions to run, manage, support, customize, configure, connect, protect, monitor, and optimize enterprise application, database and technology software.
Speaker 3: This expanded portfolio will allow us to meet the needs of a significantly larger market of organizations with $200 million or more in annual revenue or budget. One of the new Premier solutions launched in the first quarter was our end-to-end, turnkey, outsource offering, Rameini One, which provides organizations a one-vendor solution for their current and evolving enterprise software needs and leverages RameiniStreet's unique and industry-leading value, reliability, responsiveness, technology, and engineering capability.
Speaker 3: Clients are already enjoying the benefits of Remini Street's expanded solution offerings. For example, Stefan Barhees, an engineering manager at NYOB, the number one provider of ERP software in Australia and a new Remini One client, said that Remini One enables them to seamlessly manage a whole critical platform without having to deal with multiple vendors and raise numerous tickets. He said this allows the NYOB development team to focus on delivering more strategic outcomes for NYOB.
Speaker 3: as they continue the evolution of their business management platform for local Australian and New Zealand businesses. Varhees goes on to further note that switching to Remini 1 has opened up more opportunities for his organization and empowered his team to work more efficiently and more flexibly.
Speaker 3: as well as safe costs. He says ReminiOne provides a truly one-of-a-kind solution that the must for modern-day organizations.
Speaker 3: Demand Environment.
Speaker 3: We see strong demand for a proven, reliable IT services partner that can allow organizations to consolidate their IT service providers for streamlined vendor management, increase aggregated purchasing power and better outcomes.
Speaker 3: In further confirmation that Remini Street is developed to brought the right portfolio solutions to market, a sponsored survey available on our website found that a substantial number of IT leaders feel pressure from their board to show increased return on IT spent.
Speaker 3: Even more telling, a majority of the IT leaders survey seek to reduce the total cost of ownership for existing mature enterprise software by switching to third-party support programs. With almost half of participants looking to outsource support and maintenance services to free up their IT teams to work on more strategic.
Speaker 3: Innovation Focus Projects. This is an alignment with Rebini Street's vision and strategy for its expanded portfolio of solutions.
Speaker 3: to be recognized as a key IT service partner that can help clients achieve their goals from developing IT strategy and road maps to plan execution. As the market becomes more aware of our expanded portfolio of solutions, we are seeing increased lead in sales activity and growing pipelines into the current quarter of 2020, three and beyond. We believe that Remini Street is well positioned to meet the current and evolving needs of organizations that face heightened global competition in just about every industry.
Speaker 3: and must navigate the complex macro environment over the coming years. Our clients agree.
Speaker 3: GE Lighting, a savant company, is a market leader in residential lighting and smart home products.
Speaker 3: They selected the new Remini Watch for Change Management Solution, replacing SAP's Change Management Solution after determining a need for more flexibility and value.
Speaker 3: By switching to the new Remini Watch solution, G.E. lighting has experienced increased efficiency and a significant reduction in friction for its internal clients. Sanjay Sethia, senior manager of enterprise applications at G.E. lighting noted that day to day they could focus more on their strategic direction and getting deeper into analysis rather than spend time on operational issues. They were for operational issues to their Remini Street partner who he says is responsive.
Speaker 3: comes with the right analysis and guides them through each step of the way. In the past year, they have moved more than 350 system changes across five different landscapes without incident.
Speaker 3: Zephya Sadiq sees a big advantage for the company and his team, having Rameenie Street as a proven and trusted IT partner.
Speaker 3: Sales execution.
Speaker 3: During the quarter, we continued focusing on sales across the expanded portfolio of solutions and working to assure the full portfolio is available to all current and prospective clients globally.
Speaker 3: We launched our next generation revenue enablement strategy program and team and implemented many operational changes we believe will increase sales leads, opportunities, pipeline and deal close rates and ultimately drive a higher revenue growth rate and increased profitability. To enhance and accelerate lead opportunity and pipeline development.
Speaker 3: Or a litigation update.
Speaker 3: Remini Street and Oracle have been in litigation for more than 12 years.
Speaker 3: While the U.S. courts have confirmed long ago that third-party software support is legal, we presently have two active proceedings with Oracle, the injunction compliance dispute and Rameenee II proceedings, both of which relate to the manner in which Rameenee Street provides support services for certain Oracle product lines.
Speaker 3: Remini Street is not prohibited from providing supportive services for any Oracle products. With respect to the injunction compliance dispute, Remini Street followed an appeal in 2022 to the ninth circuit of the United States Court of Appeals.
Speaker 3: relating to certain rulings of the US District Court. Oral arguments on the appeal were held in San Francisco on February 6, 2023, and the matter remains pending before the Court of Appeals.
Speaker 3: We believe we could have a court ruling on the appeal at any time this year. With respect to Rimini II, the case Rimini Street filed against Oracle in 2014 and Oracle filed counterclaims. On October 21, 2022, just days before the jury trial was set to begin, Oracle withdrew certain of its counterclaims and all of its claims against Rimini Street.
Speaker 3: and ended December 15, 2022.
Speaker 3: The parties submitted their proposed findings of fact and conclusions of law to the District Court on February 23, 2023, and the matter remains pending before the District Court. We believe we could have a court verdict any time this year.
Speaker 3: Please see our disclosures in the latest 10Q filing for additional information and disclosures regarding litigation with Oracle.
Speaker 3: Summary. We remain confident that we are continuing to take the right actions and making the right investments to reaccelerate growth, increase profitability, and enhance shareholder value.
Speaker 3: Now over to you, Michael. Thank you, Seth, and thank you for joining us everyone.
Speaker 3: Revenue Retention Rate on Subscription Revenue and Exceeded First Quarter 2023 Guidance. Additionally, we maintain a strong balance sheet with cash and US government-backed securities of 135 million and reduce debt 10 million year over year from 87 million to 77 million
Speaker 3: resulting in net cash at quarter end at a 58 million. Revenue for the first quarter was a record 105.5 million.
Speaker 3: a year-over-year increase of 7.8%. Clients within the United States represented 50.6% of total revenue for the first quarter, while international clients contributed 49.4% of total revenue for the first quarter.
Speaker 3: Annualized recurring revenue was $408.3 million for the first quarter a year-over-year increase of 6.1%.
Speaker 3: Revenue retention rate for service subscriptions, which makes up 97% of our revenue, was 92% for the trailing 12 months, with more than 75% of subscription revenue non-cancellable for at least 12 months.
Speaker 3: Billings for the first quarter were 93 million compared to 97.7 million for the prior year first quarter, a decrease of 4.8%.
Speaker 3: Lower new client invoicing in the US and prepaid multi-year invoicing year-over-year were the primary basis for the decrease.
Speaker 3: Gross margin was 62.7% of revenue for the first quarter compared to 62% for the prior year first quarter. On a get basis, which excludes stock-based compensation expense.
Speaker 3: Gross margin was 63.1% of revenue for the first quarter compared to 62.5% for the prior year first quarter.
Speaker 3: with 63.1% of revenue for the first quarter, compared to 62.5% for the prior year first quarter. Looking forward.
Speaker 3: For full year 2023, we continue to expect gross margin to be in the range of 61 to 62 percent of revenue on a GAAP basis and 61.6 percent to 62.6 percent of revenue on a non-GAAP basis.
Speaker 3: for full year 2023, we continue to expect gross margin to be in the range of 61% to 62% of revenue on a GAAP basis, and 61.6% to 62.6% of revenue on a non-GAAP basis. Operating expenses.
Speaker 3: Like other organizations globally, we are experiencing cost pressures due in large part to increased labor costs and inflation in all labor categories and markets.
Speaker 3: As we discussed on our last earnings call, we continue to move workloads where possible, to lower cost labor markets and implemented every structuring in the first quarter to further streamline operations and help offset these increased costs.
Speaker 3: These actions allowed us to increase profitability and freed up budget to hire new skill sets needed to drive and accelerate future growth. The restructuring, excluding the one-time charges, should result in approximately 15 million of annualized savings.
Speaker 3: Sales and marketing expenses as a percentage of revenue was 32.7% of revenue for the first quarter compared to 32.4% for the prior year first quarter. On a non-GAAP basis, which excludes stock-based compensation expense, the stock-based compensation
Speaker 3: Sales and marketing expenses as a percentage of revenue was 32.2% for the first quarter Compared to 31.5% for the prior year first quarter
Speaker 3: We remain focused on making the appropriate investments needed to market our expanded portfolio of solutions and capitalize on our growth opportunities, and thus continue to see full year 2023 sales and marketing expenses to be in the range of 34.5 to 35.5% on a GAAP basis.
Speaker 3: and 33.5 to 34.5% on a non-GAAP basis.
Speaker 3: General and administrative expenses as a percentage of revenue, excluding outside litigation costs, was 17.3% of revenue for the first quarter, compared to 20.4% of revenue for the prior year first quarter. On a non-GAAP basis, the total revenue for the previous quarter was $2.3 million.
Speaker 3: which excludes stock-based compensation expense, GNA was 16.2% of revenue for the first quarter compared to 18.6% for the prior year first quarter.
Speaker 3: We are seeing the good year-over-year improvement in spend due to the previously mentioned restructuring, and now that the required initial investments to develop and launch our expanded portfolio of solutions is largely behind us.
Speaker 3: addressing the good year-over-year improvement in spend due to the previously mentioned restructuring and now that they're required initial investments to develop and launch our expanded portfolio of solutions is largely behind us. However,
Speaker 3: G&A expenses, as a percentage of revenue, continue to be elevated compared to our peers, due in large part to the costs for in-house legal and compliance teams and other costs made necessary by our ongoing Oracle litigation.
Speaker 3: As such, we continue to see full-year 2023 GNA expenses as a percentage of revenue to be in the range of 17 to 18 percent on a gap basis and 15.5 to 16.5 percent on a non-gap basis. Net Alphrydolidigation Expense
Speaker 3: was $2.7 million for the first quarter compared to $3.1 million for the prior year's first quarter.
Speaker 3: For full year 2023, we continue to expect outside litigation expense to be around the $10 million level.
Speaker 3: Our non-GAAP operating margin, which excludes outside litigation spent and stock-based compensation, improved to 14.6% of revenue for the first quarter and 12.4% for the prior year first quarter.
Speaker 3: For the first quarter, net income attributable to shareholders was $5.6 million, an increase of 82.7% year-over-year, and $0.06 per diluted share, compared to a net income of $3.1 million, or $0.03 per diluted share for the prior year first quarter. On a non-GAAP basis, the net income of $3.4 million is $3.4 million.
Speaker 3: net income for the first quarter was $10.4 million or $0.12 per diluted share compared to a net income of $9.2 million or $0.10 per diluted share for the prior year first quarter.
Speaker 3: Adjusted either DAW with 16.6 million for the first quarter or 15.7% of revenue compared to 12.9 million or 13.2% of revenue for the prior year first quarter.
Speaker 3: Balance sheet. We ended the first quarter with the cash balance of $116 million plus investments of $19 million consisting of short-term U.S. Treasuries and agency securities bringing cash and short-term investments to $135 million compared to $129 million as of December 31, 2022.
Speaker 3: On a cash flow basis, first quarter operating cash flow was $8.6 million compared to $45.8 million for the prior year first quarter. The variance is due primarily to large payments to our outside litigation counsel relating to the fourth quarter 2022 Remini II trial with Oracle.
Speaker 3: one time restructuring charges and lower client multi-year prepayments and related collections compared to the prior year for a squirre.
Speaker 3: Deferred revenue as of March 31, 2023 was approximately 287 million compared to 300 million from the prior year for a score. Backlog.
Speaker 3: which includes the sum of billed deferred revenue and non-cancellable future revenue, was approximately $556 million as of March 31, 2023, compared to $558 million for the prior year first quarter.
Speaker 3: Capital markets activities.
Speaker 3: During the first quarter, we amended our credit facility to transition from LIBOR base rate to secured overnight financing rate or so far.
Speaker 4: In addition, the amendment included an add-back to consolidated EBITDA,
Speaker 4: for the fourth quarter 2022 and any calculation period covered by such quarter of $10 million to offset large litigation spend relating to our fourth quarter 2022 Remini II trial with Oracle.
Speaker 4: Please see the 10Q for further details and disclosures.
Speaker 4: the 10Q for further details and disclosures. Business Outlook.
Speaker 4: We are providing second quarter 2023 revenue guidance to be in the range of $105 to $107 million and maintaining full year 2023 revenue guidance to be in the range of $420 to $430 million.
Speaker 4: We are also maintaining our full year 2023 Agile to be the Doug guidance in the range of 52 to 58 million dollars. We plan to revisit full year 2023 guidance with our second quarter earnings release.
Speaker 4: This concludes our prepared remarks. Operator, we'll now take questions.
Speaker 2: If you would like to ask a question, please press star 11. If your question has been answered and you'd like to remove yourself in the queue, please press star 11 again.
Speaker 2: Our first question comes from Brian Kinslinger with Alliance Global Partners. Your line is open.
Speaker 3: Great, thanks so much for taking my question and nice quarters, particularly on driving adjusted EVDA. You described the demand environment as one where there's opportunity for strong and proven IT partners. With that said, US growth was about 2%. So sorry to focus on the piece that you're talking about.
Speaker 5: an economy perspective? Is there any dependence?
Speaker 3: in order for you to start to see an increase in demand there. Thanks, Brian . Seth here. So, you know, from my perspective, we've made a lot of changes when I took back over the sales operations globally mid last year, and we said it would take a few quarters to start to see the results flow through.
Speaker 3: I'm actually very pleased. We started Q2 for example with a 20% higher pipeline than we did a year ago. So it's taking a while to flow through, but the quality of the deals is excellent. The market demand is excellent. We've put better sellers in the field. We've made some changes.
Speaker 3: We're doing some things that I think are going to significantly increase our revenue opportunities for America. And as you noted, America only grew at 2% in the quarter year over year, while the international was 14%. And I can tell you that as a company, we are focused...
Speaker 3: So it's all about America. We're selling great deals all over the world. America's selling great deals. They're just not selling enough of them.
Speaker 3: about America. We're selling great deals all over the world. America's selling great deals. They're just not selling enough of them.
Speaker 3: I'll follow up on that before I ask my second question. Do you expect that acceleration and demand will happen in miscalendar year? Or do you think it'll be more likely in early 2024 or towards visible in the income statement? Well, I think separating out demand from our execution, the demand I believe is huge.
Speaker 3: I think we have as big a demand in the United States as we do everywhere else around the world. And the difference in performance is execution. And again, it's all on us as we get all these products into market. And it's taken a little bit longer than we may have expected. But we have such a great portfolio of what customers want to buy and they're...
Speaker 3: talk about the full portfolio. The hard challenge in America is getting in front of senior executives. They have the need. We have the solutions, but it is really hard in America since the pandemic to get to the executives to actually have the conversation. And once we have that conversation, we're usually off and running.
Speaker 3: on being able to present solutions that often lead to a win. So for us, we have been very pinpointed on figuring out where the performance challenge is, and it is getting to the executives in America to have the right conversation. And that's what we're focused on fixing right now. Great. My follow-up, and I appreciate that.
Speaker 5: You said you have roughly 100 clients.
Speaker 5: on Rameenie wine that have an, and I'm sorry, let me rephrase that, I just heard that poorly.
Speaker 5: In terms of a remaining line, you said you have about 100 clients. Can you provide roughly what we should expect long-term, the average revenue pro customer might be or short-term or the long-term? And then second, you describe it as a turnkey outsource solution that you're providing.
Speaker 5: I think it would be helpful to understand what is it that companies are outsourcing to use in application management and if not, what are the functions that are being outsourced to Renini? Sure. Question number one is you know our average sales price on the support deal, just the average sales about $200,000.
Speaker 3: that goes up and down a little bit depending on the quarter. We don't have numbers that we're ready to publish on AMS or Remini1. Again, even with 100 data points, there's a lot of variability. So there's not a number in there yet that we can really put out and feel comfortable about that you could model.
Speaker 3: That, I think, will come as we get more and more customers on it. We get more experience in understanding what kind of products, what kind of customers will have, what kind of pricing. It is pretty variable. What they're actually outsourcing to us is the running of the system day to day. So we take over from the team. We run the ERP system.
Speaker 3: We provide the support, which of course is our core bread and butter that we've done forever. And then we provide security assistance and products. We provide interoperability when things need to connect to other systems. All those become our responsibility. And what we're trying to do is address the issue. And the issue is that all this back-end ERP systems are becoming utility.
Speaker 3: And we will run that utility. We will make sure it runs better than anybody else. We'll make sure that they get better results out of that system. And we will lower the cost on managing that system end to end. And that allows people to take some of that money in savings and resources and use them in innovation and take some of the savings and drop it to the bottom line to improve.
Speaker 2: Thank you. Our next question comes from Eric Wood with Cowan. Your line is open.
Speaker 6: Oh great, thanks guys, it's Andrew on Ferdaric. Congrats on the strong quarter.
Speaker 6: We'd love to hear some more color on how sales cycles and decision making played out in the quarter. Did you see any impact from macro and specifically the banking crisis in the US?
Speaker 3: Did you see any deals slip? Any color would be helpful there? Sure, and the great news is, again, there's always two sides to a coin. Economic uncertainty and challenge is a good thing in our pipeline and our business. It's not something that distracts or pushes deals out. We're the kind of people that come in in good times.
Speaker 3: And we're really sought after when people are in trouble and they need to adjust their cost basis, they need to adjust their staffing model, or situations where they just can't staff their systems and they need professionals that have the engineering capability to step in and take over either running the system, supporting the system, securing them.
Speaker 3: All of that we have the capability of doing. And so I think for us, no, we didn't see decision-making issues in the quarter. Any delays that we had in terms of deals, last quarter we had a lot of slip deals. I don't think we had a lot of slip deals from Q1. It probably amounted to $4 or $5 million that we thought could come in in the Q1 that slipped into the next quarter or future quarters. But those happened because management wasn't able to...
Speaker 3: strong performance on a global basis. America is simply a sales execution issue. That demand is there and we just haven't been able to take enough of it off the table yet and that's what we got to work on.
Speaker 6: Yeah, great. And then Michael, you'd be Q1 revenues by 3 million, but you're keeping the full year guide. I know the comments says you'll revisit it, but it is not raising it now just an actual layer of conservatism or is there something else to think about in the back half?
Speaker 4: Andrew, I think you summed it up precisely that an extra layer of conservatism we did note we're going to revisit in mid-year, but certainly feeling in a comfortable position up and down the P&L for our guidance at this time. Okay. And one more for you, quick one, Michael. Customer count, I didn't see anywhere. I may have missed it, but is that...
Speaker 4: up precisely than an extra layer of conservatism. We did note we're going to revisit in mid-year, but certainly feeling in a comfortable position up and down the P&L for our guidance at this time. OK. And one more for you, quick one, Michael. Customer count, I didn't see anywhere. I may have missed it, but is that disclosed or not?
Speaker 4: It's actually in our Form 10Q, but we're over 3,000 in aggregate clients and over 1,500 unique clients, but you have the exact data in our queue.
Okay, great. Thanks guys. Thank you. Thank you. Thank you. Our next question comes from Jeff Van Ree with Craig Hallum. Your line is open.
Great, thanks. Thanks for taking my questions. Obviously, top line and EBITDA, real nice performance looks pretty conservative going forward. My focus would be on sales and billings here. Seth, the pipe was up, I guess you said 20% year over year this quarter. What would that number have been last quarter if you gave it year over year? I don't think we actually...
see too much pipeline growth in the last few quarters. That's why I'm pointing it out is that I think all the work that we've been doing in the last six months is starting to work its way through the snake as we say, starting with the lead volumes being up which is translating and working its way through the growing pipeline. And when we say pipeline is up we also count that as a minimum 10 likelihood of
and putting a lot of things in place that are really getting more traction. But as I mentioned, we're still just not getting in front of enough executives to make our pitch in North America. And that's really where the focus is. You mentioned the duration issue. And obviously if you take a look at the shorter term deferred.
It's maybe a little bit better picture on the billing side, but that said, the billing's rolled over from being slightly positive last quarter to slightly negative this quarter. When you think about 23, I want to press you a bit to say, I guess, what would be failure? What would be disappointing to you in terms of billing's growth, whether it's a target of growth great maybe by Q4?
or growth in billings for the year, just how do you mentally set a benchmark that if we don't get to X, I will consider it failure?
Well, I think you have to look at the North American revenue growth rate of 2%. I don't think anybody should be satisfied with that. We're certainly not. And I think when you look at 14% on the international, that's a decent number, one we're going to, again, try to go, as you well know.
I'm very very bullish and focused on driving north of 20% growth in the company So I think international is on its way in fact I think Asia was was probably even more than that and probably moderated a little bit by EMEA, but I think that overall
We're very focused on bottom line. I think you saw that in the adjusted EBITDA. We are determined to be a very profitable company. Even though we're going to have moderate growth as we've been forecasting and guiding to moderate growth that we're going to attempt to accelerate year over year, quarter over quarter, we are going to be focused on that bottom line.
and the adjusted EBITDA numbers, the fact that we started providing guidance for that shows that we are extremely focused on bottom line performance as well.
Okay, and from a sales standpoint, I guess just circling back to the process, it sounds like I guess two questions there. One, the belief was in really difficult macro environment and I think you can see a lot of entities under a lot of pressure.
that you would see accelerating tailwinds and you've referenced it but are you are you in fact seeing that it sounds like that maybe is maybe showing up in the top of the funnel but not showing up in close rates yet
I would say that's fairly accurate. We're absolutely seeing it at the top of the funnel. And I think that's number one, obviously, our better performance as a sales organization, as a marketing organization, the machine performing better, getting more traction globally. And we have to increase that in the US.
and walk them through our whole expanded portfolio of services and capabilities. That goes very, very well and often turns into next steps in the sales cycle, and I believe that will grow the pipeline significantly. So it really is that one problem. If we can get in front of more executives, get their attention for a few minutes to present what we're doing, I think we will grow sales significantly. Okay, I'll leave it there. Thank you. Thank you.
Thank you. We have a follow-up question from Brian Kinslinger with Alliance Global Partners. Your line is open. Great. Thanks, Brian . Thanks. I started with the challenging markets. Now I want to touch on the market that you're doing a lot stronger in. If we look at the last few third quarters, which is a driver for international bookings, you had some challenges. Two years ago, I'm not saying you don't know. The sales team was a little too new. Then last third quarter, the market was a little bit in chaos.
Some companies weren't prepared to make decisions because there was so much chaos. So, we're two months away from the beginning of this third quarter, which is very important to drive growth for next year.
As you said, companies are under pressure. Your sales team is more experienced. Is there any reason to believe? Is there anything I'm not thinking about in terms of headwinds? I get the sense you think this will be a super third quarter in terms of bookings that will position you for accelerated growth, which you kind of touched on for international briefly. But I just want to make sure I'm thinking about it the right way.
to help companies reallocate those IT spends. We can bring down that cost. We can improve profitability. And we can drive growth with moving money into innovation as well as with the staff. So I think we are extremely well positioned. And it's on us to get the execution where it needs to be to take advantage of.
I think the best market opportunity the company has ever seen, we've never had more products, more solutions to more business issues than we have today. And it's our job to get it out there, to get in front of these executives, present our wares, present our solutions to their problems, and get these transactions moving and get them done. So I think it's a very different environment and I think we are...
Well positioned for that and now we need to execute. Great thanks for taking my follow up. Sure. Thank you, there are no further questions like to turn the call back over to Seth Raven for closing remarks.
Well thank you very much everyone. Thanks for joining us today. Once again we always are very thankful for the world that we get to live in and we know that there's a lot of people under pressure living in war-torn areas who are struggling and we always like to keep our thoughts on them as well. So be safe, have a great day and we look forward to a next call and giving you the results for this.