Q1 2024 Samsara Inc Earnings Call

138 large customers, bringing us to a total of 1,375 customers with over $100,000 in ARR, growing 53% year-over-year.

This includes Fortune 1000 companies with large and complex operations, such as United Rentals, Iron Mountain, and Warner Enterprises.

Our customer feedback loop is central to our success.

Sam Sare customers are the backbone of the global economy and are leaders in diverse industries like construction, field services, manufacturing and retail.

During the quarter, I was on the road with our executive leadership team in the US and Europe , meeting with some of our largest customers.

Our technology is driving meaningful business impact for them and they're asking us to double down on a few things.

First, AI-based safety technologies to reduce risk across operations.

Second, digital workflows to increase efficiency for frontline workers.

And last, more platform and data integrations to drive higher asset utilization in the field.

We're hearing this across the board, not just in the single industry.

In this current environment, our customers are prioritizing investments and solutions that help control costs and deliver rapid ROI by running smarter, safer, and more efficient operations. Now we'd like to focus on how we are using AI to deliver rapid ROI and transform customer data into business impact.

AI has been core to how we built our product over the last five years. And our data mode is one of our key competitive advantages.

The more operational data we unlock and transform into powerful insights for our customers, the bigger the business impact.

I'd like to bring this to life for the customer example.

and storage and information management services that serves 95% of the Fortune 1000 and has more than 25,000 employees. Police Police Department welcomes you.

They're focused on investing in software that delivers a high business impact and quick ROI. This organization uses our vehicle telematics application for asset location maintenance and is expanding to our AI-powered video-based safety application to improve workplace safety, reduce insurance premiums, and lower corporate risk.

Based on results from pilot study, we anticipate our platform can help them achieve more than a 3X annual ROI, which is roughly a four month payback period.

By improving their safety program, we expect to see a 54% reduction in safety events, a 91% reduction in mobile usage, and a 97% reduction in no seat belt usage.

On top of reducing accidents and creating a safer work environment, they're also gaining a competitive advantage when recruiting talents in a challenging labor market.

These types of results are always amazing to see, and we're excited about the opportunities where AI can unleash the power of data to deliver value for our customers. are

I'm amazed by the improvements AI has made on the safety, efficiency, and sustainability of our customers operations. The magnitude of AI's impact on the world of physical operations is clear. And SEMSAR is positioned to be under forefront of this technological revolution because of three unique competitive advantages.

First, we continue to amass a massive operational data asset, approximately 6 trillion data points flow annually into a connected operations cloud, and it continues to grow in size and sophistication.

The combination of diverse assets and data types across different industries, geographies, and customer sizes makes our data asset truly unique.

This allows us to train powerful AI models to unlock valuable insights for our customers.

Second, we've invested in the infrastructure to rapidly deliver AI features. We've built capabilities to capture and create structured and unstructured data, train and evaluate models and operate across tens of thousands of customers both in our cloud and at the edge with IoT devices.

And third, our product innovation is powered by incredible customer feedback loop.

This allows us to identify our customers' most critical, domain-specific problems, capture ground truth data, and partner with them to test, validate, and ultimately deliver AI-powered solutions on our platforms.

We are also using data-driven insights to help our customers with their ESG goals. Focusing on the S in ESG for social impact is again all about safety.

A top priority for our customers is getting their employees home each day to their families, especially as many work in dangerous physical environments. One of our customers, Liberty Energy, is a great example of this.

Liberty is a leading North American oil field services company. They use SAMHSARA's video-based safety for proactive driver coaching and to get enhanced visibility in the cab, which they feature in their most recent ESG report.

making driving the highest risk activity they undertake.

By using SAMHSARA, Liberty realized that 50% reduction in vehicle accidents saved half a million dollars in incident-related costs.

Let's now turn to the E and ESG for environmental. Our customers are faced with a growing demand from their end customers, investors, employees, and policymakers to have more sustainable operations.

Lane's group is a great example of a customer using SAMSAR to reduce emissions. Lane's is a leading wastewater utility solutions provider and the largest independent drainage specialist in the UK.

In their most recent sustainability report, Lane shared that using SAMHSA are helped produce fuel consumption by improving driving behavior for their entire fleet.

This allowed them to reduce overall carbon emissions, even as their fleet continues to grow.

It's also worth mentioning that lanes adopted SimSar's video-based safety and have decreased the frequency and severity of accidents. They lowered their insurance premiums and reduced the cost of each claim, generating an annual insurance savings of 250,000 pounds per year.

We are committed to building a safer and more sustainable world together with our customers and are proud of the progress as we continue on this important journey.

Our customer momentum reflects the large market opportunity for digitizing the world of physical operations.

As we head into our next chapter of growth, I'm excited to announce Laura Kaimi is joining Sam Starr as her first president of Worldwide Field Operations. She joins us from ServiceNow where she served as Chief Customer and Partner Officer and prior to that as a Chief Strategy Officer.

I'm excited to welcome Laura to join us in the next phase of growth.

I also want to share the news that our chief revenue officer, Andy McCall, will be retiring at the end of the year. And it's staying on as an advisor until that time to help us with the transition.

I've been fortunate to partner with Andy over the last six years as he's helped build the sales team at Sempsara into a world-class organization. All of us at Sempsara wish Andy the best and as well deserve retirement.

It's been another exciting quarter of durable and efficient growth for SimSAR. And we are grateful for our partnership with our customers and the impact we're able to make together.

I also wanted to thank all of our Sam Sarians, customers, partners, and investors for joining us in making this journey to digitize physical operations possible. We're excited to continue our partnership at our second annual customer conference, Sam Sarebian from June 21st to June 23rd. I'll now hand it over to Dominic to go over the financial highlights for the quarter.

Thank you, Sandra. Q1 was highlighted by strong pipeline growth and continued operating efficiency improvements.

are durable and increasingly efficient growth, demonstrates the large and growing opportunity for digital transformation across the world of physical operations.

While global economic uncertainty persists, we exceeded our expectations for key top line and profitability metrics for a few key reasons. First, we have a subscription business model that produces highly predictable revenue. And we price subscriptions based on the number of physical assets versus head count-based pricing, resulting in a lower risk of ACV contraction if our customers hiring slows or contracts.

Second, our customers deploy SAMHSAura to generate hard ROI savings and many experience a quick investment payback period measured in months.

And third, we primarily sell into the operations budget, which is generally large and non-discrutionary for our customers.

we added $61 million of net new ARR representing 24% year over year growth or 4% points of year over year growth acceleration at a larger scale.

Additionally, Q1 revenue was 204 million, growing 43% year over year.

Several factors drove our strong top line performance in Q1.

First, we continue to focus on serving large physical operations customers. We now have 1,375 100k-plus ARR customers, a record quarterly increase of 138 or 53% over year growth.

Our investments in serving the largest physical operations companies in the world continue to pay off.

100 K plus ARR customers represent our fastest growing cohort and make up 49% of total ARR up from just 45% one year ago.

Second, this was a strong customer expansion quarter.

60% of Q1 NetNewACV came from expansions to existing customers, our highest quarterly mix ever, and up from 51% in Q1 last year.

Eight of our top 10 net new ACV deals in Q1 were customer expansions, including a large $1 million-plus expansion to a leading national distributor of aftermarket automotive replacement parts. Three years ago, this customer landed with video bay safety and telematics for just their heavy-duty vehicles, which make up less than 5% of their entire fleet.

And in Q1, the customer adopted SAMHSARA across their entire light-neutiful fleet as well to improve driver behavior, reduce accidents, and lower insurance costs.

And third, while our core business drove most of our Q1 performance, we executed well across several new frontiers. For example, 15% of Q1 net new ACV came from non-vehicle applications, primarily from strength and equipment monitoring, which ended the quarter at approximately $100 million of ARR.

Additionally, a record 17% of Q1 Net New ACV came from non-US customers, including a top 10 expansion for one of Canada's largest grocery retailers.

And lastly, 83% of Q1 net new ACV came from non-transportation customers with particular strengths in utilities, energy, field services, construction, and public sector.

In addition to delivering strong top line growth, we continue to focus on driving operating efficiency improvements across our business as we scale. In addition to delivering strong top line growth, we continue to focus on our business as we scale.

Q1 gross margin was 73%, approximately flat from Q1 FY23, and our gross margin has remained above 70% for 11 consecutive quarters. Q1 operating margin was negative 9%, compared to negative 18% in Q1 of FY23.

An improvement of 50% or approximately 9% at points year over year driven by leverage across all functions.

This is our 12th consecutive quarter of improving both operating margins and operating profit year over year. In Q1, adjusted free cash flow margin was negative 1% compared to negative 36% in Q1 FY23, an annual improvement of 35 percentage points or $49 million.

Primarily from improved operating leverage and continued working capital improvements.

Efficient growth continues to be a priority, as demonstrated by a 42% rule of 40, our third consecutive 40% plus rule of 40 quarter. While we're pleased with this accomplishment, our goal is to continue making the necessary improvements that would allow us to achieve rule of 40 consistently on a quarterly and annual basis.

Okay, now turning to guidance. For Q2 FY24, we expect total revenue to be between $206 and 208 million, representing between 34 and 35% year-over-year growth.

operating margin to be approximately negative 9% and EPS to be between negative 3 and negative 2 cents assuming 532 million weighted average shares outstanding.

Based on our Q1 results and improved outlook for the remainder of FY24, we're raising our full-year revenue guidance to be between 866 and 874 million, or between 33 and 34 percent year-over-year growth.

In addition to increasing our top-line guidance, we continue to focus on operating efficiency improvements. As a result, we're also improving our full-year operating margin guidance to negative 5%, or an implied FY24 operating income improvement of $16 million at the midpoint of guidance.

And we expect EPS to be between negative two and zero cents, assuming 535 million weighted average shares outstanding for the full year. And finally, we included a few additional modeling notes in our shareholder letter. So to wrap up, we are very pleased with our first quarter of FY 24.

We are digitizing the world of physical operations and helping our customers become safer, more efficient, and more sustainable. We are digitizing the world of physical operations and helping our customers become safer.

We continue to be committed to driving durable growth while also achieving operating efficiency improvements on our path to profitability. And with that, I'll hand it over to Mike to moderate Q&A. Thank you, Dominic. We will now open the line up for questions.

When's your turn, please, let me ask questions to one main question and one follow-up question. The first question today comes from Matt Fow with William Blair, followed by Matt Hedberg with RBC.

Great, thanks for taking my question. Wanted to just ask the really strong first quarter, anything that was, I guess, non-normal in the quarter, and on the demand environment, it seems like it's holding up quite well, but...

Any change there from the fourth quarter that you saw? Thanks. Hey, Matt, it's Dominic. I would say nothing really stands out as being unusual with Q1. Again, really strong customer demand. I think the...

the hard and fast ROI and the early innings of digital transformation and physical operations really continue to drive strong customer demand. I would say that the buying environment is similar to kind of what we started to call it in the middle of last year and that persisted into Q1. We're seeing really strong pipeline and conversion of the pipeline, but the sales cycles remain a little bit more elongated than they were.

you know historically, customers wanting to do longer trials, you know wanting to really nail down the ROI analysis, running approvals you know higher up into the end of the organization, but nothing that stands out you know terribly different than what we saw in Q4.

Great, our next question comes from Matt Hedberg with RBC followed by Alkzoukans with Wolf. And so the next question comes from Matt Hedberg with RBC followed by Alkzoukans with Wolf.

Hey, I have Dan Bergstrom from RBC or from AdHeadberg. Thanks for taking our question. So it looks like a nice hire here with Laura and good to see Andy staying on through your end. Any more color around the change there? Why now? Is it just getting the right fit the scale to the next level? That's exactly right. This is standard, by the way.

that she's customer officer. She also saw them scale from roughly a million and a half billion, sorry, a billion and a half in ARR to over seven. So as we prepare for this next chapter of growth for SAMHSA, we thought she'd be a great asset to bring into the team. I would just add in one additional point on that. I think it's important to note that...

All of the senior leaders in the sales organization that are going to report into T'lara in this role are folks that have been with the company for many years, some more than more than five years. And so we have a lot of continuity across all of the individual market functions that are going to report into L'ara.

Great, thanks. And then appreciate the additional color around equipment monitoring ARR at 100 million. Nice to see that. Any more details there, growth rates, traction, et cetera. And then maybe anything else from a product perspective this quarter to point out beyond those core safety and telematics products. Nothing really of a call out of it. It's been continued progress.

Thank you.

Great. Our next question comes from Alex Zukin with Wolf.

followed by cash ringin with Goldman Sachs. Yeah, hey guys, can you guys hear me okay? Yeah, yep. Thanks for taking the question. So I mean, look, truly astounding performance and what is a tough macro where you're accelerating growth, at scale, more large customers.

you know, more expansion on a year over your basis from existing customers. I guess, are you seeing something, you know, is there a new dynamic or trend developing? Obviously, sales cycles are still challenged, particularly in the larger side, but it's unusual, I would say, to see acceleration at this scale. So is it that you've hired a lot of...

you know reps over the course of the last year that are starting to ramp is something in the packaging and pricing that's coming to bear uh... is it you know some new geography that you've opened up like what's the story that you feel like is is kind of driving this acceleration

Hey, Alex, it's Dominic. So I think the real drivers are, I would say, there are some external factors and not really is. It's just that it was a very strong customer demand, quarter into one and we've seen that in the most recent quarters as well. And I think going back to my...

original points. We're selling into a little bit of a different budget here. We're selling into the operations budget for our customers, which tends to be pretty large, less discretionary than maybe some other budget categories. And customers are able to save money and drive really strong and

hard ROI and they're able to pay back their investment very quickly. And so in a challenging macroeconomic environment that has continued to play well. In terms of what drove the performance, I would say it was more tied to strong productivity. You know, we called out it was a really strong

large customer quarter, a record number of 100 K plus customer ads at 138. It was a really strong expansion quarter of the new frontiers performed well. And so I would I would frame it more as strong productivity than a bunch of additional fully ramped sales capacity added.

Perfect. And then maybe just to follow up, Sanjik, because we've already gone three questions and Gerda and AI has not been mentioned. So in the spirit of keeping that going, I guess if you mentioned how strong of a data asset you're gathering in the platform, one data model.

As you look at evolving, particularly with, you know, Laura coming on, as you look at the evolving product packaging and just general go-to-market, how important, how realistic is it to assume that there are some incremental monetization opportunities from kind of...

All of a sudden they could go from not having to watch hours or hundreds of hours of video footage to being able to surface safety incidents in their inbox and then coach their drivers and reduce their risk. So that showed us the power of AI. I would say generative is a new tool in the toolbox and it comes AI and we're continuing to invest there. As far as incremental monetization, we first think about how do we create a lot of value for our customers.

best align with the problems that our customers are trying to solve and then price and package appropriately.

Perfect. Thank you guys. Congrats.

Thanks X Thank's. Our NS question comes from cash ranging with Goldman Sachs, followed by Sterling Audi with lfffed eatenson. Hey guys, this is jacobbon for cash, thanks. Thanks a bunch for taking the question one echo Alex said on the quarter: really really, really a strong quarter. Good to see. A couple quick questions.

The presentation noted that 83% of the net new ACV was from non-transportation customers. Was this due to more of a focus on those other verticals or was this due to the current weakness that's being seen in the transportation industry as a whole?

I think this is a trend that we've seen for a while now. I think we've called out in previous investor presentations. And if you look at it just on an overall ARR basis, the transportation segment is in the kind of low 20s percent. So this is even more than that. And I think it just goes to the breadth and the horizontal nature of our platform that this is really a solution set that's...

addressing many of the physical operations industries. And I think that that sometimes misunderstood by investors. And so we just wanted to make sure that we called out that we're really seeing strength across many of these other end markets more so. Awesome. Good, good to hear. And then one more for me is...

reading through some of the transcripts from like JB Hunt and Werner. They both noted that they've had some pretty strong headwinds from insurance claims Alaska PC. So has that maybe altered the current selling motion to focus more on the money that can be saved with video-based safety solutions and the benefits they might get from reducing

they were not involved with. And then also just being able to coach their drivers to reduce risk. So that's something that we've been selling into for a couple of years. And I think the examples you mentioned just highlight how valuable it is. And the cost of claims, by the way, can be hundreds of thousands or even millions of dollars. So it really is a significant source of ROI for our customers. Okay, awesome. All right, thanks for that clarification. Our next question comes from Sterling Audi.

Does that suggest that Samsara will actually start to develop industry-specific, specialized solutions built on AI? If that's the case, what kind of timeline should we think about before seeing something like that in the marketplace?

So Sterling, as Dominic mentioned earlier, we serve a pretty broad set of industries and we try to find the kind of 80%, 90% commonality. I wouldn't expect us to have verticalized solutions by industry. In terms of how we're using AI, we are trying to find deeper insights in that data and again, save our customers time, make it easier.

worked really well for us. It's very complimentary, but our investment in AI is gonna be a bit more across the board as opposed to any specific vertical industry.

That makes sense. And then Dominic one for you. You talked about pipeline. Just kind of curious, can you qualitatively just describe to us what's happened to kind of pipeline coverage ratios over the last several quarters as you're kind of managing through these elongated sales cycles? I think that the pipeline coverage has held up relatively well and kind of in line with

sales cycle length and I think we've done a we've continued to do a very good job of building pipeline and converting that to drive the strong bookings numbers.

we've continued to do a very good job of building pipeline and converting that to drive the strong bookings numbers. Got it. Thank you.

Our next question comes from Chris Quintero with Morgan Stanley followed by Kirk Materne with Evercore. Hey, Corey.

Hey, this is Chris Pintero on for Keith. Congrats on another quarter of the strong results here. Following on the theme of asking about AI, I want to ask about your pricing model of charging based on a number of devices versus seats like a lot of software does. So kind of two part of question. One, what are you seeing in terms of customers wanting to add more devices? Any other questions or comments you, or questions you might have in terms of where this guys

And two, what do you think this means about your opportunity with AI given the Q part of the 3 times Q equation is not as negatively affected?

Yeah, I think we're seeing generally when customers are expanding a larger portion of the of the expansion is coming from phased rollouts of customers that are taking products that they already have and rolling that out to a broader number of assets and in often cases that can be you know more vehicles and so we're seeing you know customers continue to grow and to expand.

terms of their assets. It is not so much seats and users, it is the assets. What we are doing is adding value through all the software and data. Over time, we want to be more valuable to the customer per asset. We want to be more valuable to the customer.

Q1 net new AR should be seasonally weaker than previous years due to more of those kind of enterprise engagements, but actually came in better. So I want to better understand the dynamics there and if that changes your view on seasonality for the rest of the year. Thanks. Yeah. Again, it was a strong Q1, I think, again, due to some of those external factors, the strong customer demand, and then we really did have strong internal.

productivity performance. And so I think that we feel that the seasonality should probably look like it has in previous years. Though I think we recognize that there is a lot of macro uncertainty in front of us. And we did add a lot of hiring and sales capacity in FY 23. And so understanding how that sales capacity ramps and how productive it is.

Derek Wood with Callan.

Thanks, I'll echo the congrats on a nice quarter. Yes, Sanjeev, just to start, I was curious to be able to talk about how you think about building out your own sort of application solutions on your data estate as data becomes a more essential element of AI. I was just kind of curious if that changes your thinking on what you all might want to do versus handing it over to partners in the app market.

lens of what drives value for our customers. And that's how we've thought about pricing and packaging. Over time, if there are opportunities, if there are commonalities, in other words, that many of our customers and prospects are asking us for, we would go there, again, kind of applying that 80-20 philosophy. But for now, we see a tremendous opportunity with the core apps that we offer today. So we're going to stay focused.

but did it, I guess, ever flow one way or the other this quarter in a bigger way? The example you gave was obviously you're expanding sort of the asset base that's working with you all. Just curious if the product side of it was strong as well on the expand side. Yeah, it was. I mean, it is a mix of both rollouts of the product across more assets as well as cross-sells of additional.

Thank you. Our next question comes from Derek Wood with Cowen, followed by Michael Turin with Wells Fargo.

Great, thanks. I hope you guys can hear me okay. Just wanted to ask about the hiring of a new head of field operations as you look to scale to the next level. Is there anything you want to highlight in terms of potential go to market tweaks that you'd be looking at over the next few quarters? I don't think at this point again this is just something that we're announcing today and we've got a machine that's working really really well.

Great, and given that Europe is such a big part of the TAM out there and you guys had a record percentage of new ACB from non-US customers, it would be great to just hear about investments in Western Europe or even Canada, how they're tracking.

what demand is like and how you're thinking about this these international regions helping to contribute to incremental growth in the medium term. Yeah, I would just call it like we are seeing really good success in all of our international markets of Canada, Mexico and Western Europe a record you know 17% of net new ACV coming outside of the

the US. I think we recognize that these markets are, you know, Western Europe , for example, is a larger market opportunity than the US just in terms of the number of physical operations assets. And so our core business in the US continues to be the biggest driver of growth and productivity.

We're definitely investing internationally and you're seeing the higher growth leading to a more net new ACV mix coming outside of the US as well. Okay. Congrats on a great quarter.

Our next question comes from Michael Turin with Wells Fargo followed by Jim Fish with Piper Samba.

Hey, great. Thanks. Good afternoon. Appreciate you taking the questions. Just on a similar line from some of the prior questions, Q1 is especially strong to start the year. The customer expansion activity and the mix also stands out. So just any additional commentary you can add to help us square, withdraw stronger expansion, especially in a Q1.

We don't necessarily run the business to.

specifically go after new logos versus expansions if you recall from Q4 it was a really strong new logo quarter and outpaced expansions and in this quarter kind of flips back the other way. New logos were still really strong in terms of the the overall number of logos added in the average deal size for new customers it's just that expansions were stronger there were there was no kind of changes to go to market or incentives.

or any of the kind of sales playbook to accomplish that. And we've seen that kind of flip back and forth.

Great to have that interplay at your disposal. Just if you can remind us, Dominic, that the delta between operating margin and free cash flow margin, if there's a thumbnail and what that's mainly a function of and you have some commentary around how you're expecting that to trend longer term and the letter, if you can just kind of spell that out for us as well, it's helpful.

I think the biggest driver is obviously the working capital dynamics. If you go back a year ago, I think Free Castle was like 18% below operating margin. That was really driven by the challenges in the global supply chain. Now, I think in this quarter, we were 8% points better on Free Castle than us.

relatively in line with each other. You know, in Q1, we were a little bit better on on working capital, but as you're thinking about it going forward, you know, I think, you know, with within, you know, plus or minus 5% of each other, but kind of moving, moving together is what I would expect.

Very helpful. Thank you. Our next question comes from Jim Fish with Piper Sandler followed by Janae Edruist.

Hey guys, thanks for the question. Nice nice quarter. Really wanted to go about the expansion here, going back to the prior couple questions ago. Obviously you guys have talked about that it's particularly strong. It kind of implies that NRR.

you know, possibly uptick here. And I know Dominic last quarter, we talked about that you expected, you know, net retention rates to be a little bit lower than where we were last fiscal year. And I get it's only one quarter, but this quarter, is this a quarter changing view on that, that we could actually see retention rates, you know, finish similar to where we were.

last year just given the strength and expansion you're seeing right now in your install base? Yeah, I would just, we really at the beginning of each year we're setting out a target for the year in terms of what we expect our net retention rate to be and you know and then Q1 we were above it. In quarters where more net new ACV comes from expansions it definitely helps.

Are you guys disclosing where overall headcount is? I know you don't want to give quota reps, but where are we at with total headcount at this point? And how are you thinking about the hiring environment with the upside you're seeing right now, the pipeline strength kind of balanced against kind of the macro in other spaces at this point that you're not really.

hiring environment remains good. I think, you know, overall new hires and our attrition rate and frankly employee sentiment and all of those things are working really well right now. Frankly, probably as good as we've ever seen and so a lot of good, you know, hiring momentum right now. Thank you.

I think you know overall new hires and our attrition rate and frankly employee sentiment and all of those things are working really well right now is frankly probably as good as we've ever seen and so a lot of good you know hiring momentum right now. Thank you. Thanks Jim.

Our last question today comes from Janae with Truist. Great, thanks for taking my question. This is Janae from Truist. You know, you've done an excellent job adding large customers to the platform.

and months maybe in a couple of quarters and we have some large customers where it could be a multi-year sales cycle and it's been pretty consistent over the last few quarters we did again see it elevate kind of in the middle of last year but across the board across all customer segments it's been pretty consistent over the last few quarters and I think we're always going to have some some quick converts and we're likely always have some elongated sales cycles but it's something that we're...

First, we'll be attending the William Blair Growth Stock Conference in Chicago on June 6th, and the Baird Global Consumer Tech and Services Conference in New York on June 7th. So we hope to see you in person at one of those events. Second, we are hosting our investor day on June 22nd in Austin, Texas, where we will be providing additional insights into Sam Sarah's trajectory and the overall state of physical operations.

Please send an email to ir at samsar.com if you're interested in attending in person. For those that prefer to attend virtually, our investor relations website will have a link to a live broadcast.

That's it for today's meeting. If you have any follow-up questions, you can email us at irxmstar.com. Thanks again. Bye, everyone.