Q2 2023 SoundThinking Inc Earnings Call
You'd ask Brendan and welcome to selling thinking second quarter 2023, quite physical maiden name as CEO and I will be your operator for today's call joining us I felt thinking CEO , Ralph Clark and CFO Alan Stewart.
Please note that certain information discussed on the call. Today will include forward looking statements about future events, and so I'm thinking <unk> business strategy and future financial and operating performance. These forward looking statements are what are your predictions and are subject to risks and uncertainties and assumptions that are difficult.
Boutique and meat cost the actual results to differ materially from those stated or implied by those statements certain of <unk> Suisse and assumptions are discussed insult thinking SEC filings, including its registration statement on form S. One.
Forward looking statements reflect management's beliefs estimates and predictions as of the date of this live broadcast.
August eight 2023, and so thinking undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances. After the date of this call. Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section.
Of the company's website at IR that sounds thinking dot com now I would like to turn the call over to sell them thinking CEO Ralph Clark Sir. Please proceed good.
Good afternoon, and thank you for joining our second quarter 2023 conference call.
After Alan I give our views will be happy to take your questions.
However, before I get into the specifics of our Q2 2023 performance I wanted to first share with you that overall, our company is settling into our expanded platform vision and our new corporate identity of sound thinking.
We're well on our way towards executing on the promising next phase of our growth journey and impact.
We continue to be bullish on the tremendous opportunity we have in partnering with law enforcement and their digital transformation, which we believe is fundamental in improving the law enforcement profession, and better connecting them to the communities they serve.
And even with the current challenges they face with limited resources and increased scrutiny. We are committed in our purpose to help them become more efficient effective and equitable and closing the public safety gap that existing communities worldwide.
Turning to financial performance. Our Q2 2023 revenues were mostly in line with our expectations with $22 $1 million compared to Q2, 2022 revenue up $20 million.
Adjusted EBITDA was $2 $4 million or 11% of revenues compared to $4 $1 million or 20% of revenues for Q2 2022.
As al will address in more detail below the line expenses in this quarter included increased investment in sales and marketing associated with our rebranding launch along with increased head count and personnel related costs.
One time other expenses.
We had another phenomenal quarter of go live activity with seven new city captures in one new University, along with seven city expansion and a university expansion this quarter.
These included but were not limited to new customer captures the Erie, Pennsylvania, Deerfield Beach in Lauderdale, Florida.
We also took light material expansion miles in Detroit, Cleveland in Virginia Beach.
We are confident in our go live momentum and with what has already been taken live during the first half of this year combined with our current booked contracted and staff projects slated to go live in the next 60 to 90 days, we projected to be at 140 Shotspotter go lifestyles. This year.
There is a potential upside to this forecast that could put us north of 150 miles to the extent that we can book additional near term sales pipeline opportunities in Q3 that can be also deployed in Q4.
I'm also quite happy to report that we have another quarter with zero attrition.
Let me provide a brief update on where we are in Chicago.
Recent public statements and actions by the Mayor's office, including the formal budget appropriation and funding of the previously executed contract extension have been constructive.
We believe this moves us beyond the potential 2023 cancellation risks that we had previously and appropriately factored.
We're still very focused on working with Chicago, PD on demonstrating and articulating the value of Shotspotter in saving lives and enhancing downstream investigations as we continue to build upon strong police Department and City Council support.
In fact, just this past weekend local news reported on a $6 million Shotspotter alert electric Cabo PD and finding a 14 year old gunshot wound victims, who is quickly rushed to stronger hospital in critical condition.
No corresponding 911 call. It is likely that this child is alive today due to the Shotspotter alert and the quake and Brave response of Chicago PD first responders.
This narrative is consistent with the feedback we've received in our recent modest community outreach campaign conducted in and around Chicago, We are very pleased but not at all surprised with the overwhelming positive response that was garnered including incredibly supportive comments and powerful personal testimony of like say like the <unk>.
<unk> incident I just shared from this past weekend.
Importantly, we believe the capability Shotspotter helps bring about are consistent with Mary Johnson.
<unk> values and is focused on community engagement.
We're hopeful and looking forward to continuing our partnership with the city and citizens Chicago.
We also have positive news to share in regards to Puerto Rico.
As you May recall, we reluctantly terminated our service to Puerto Rico earlier this year.
The contract exploration and the customers' inability to extend our multiyear contract.
Puerto Rico has contracted for a 90 day interim extension to resume service.
They use this period not only to develop but also issue an RFP and evaluate competitive bids.
We are highly confident about our prospects for a multiyear contract award given our stellar track record and value to the Puerto Rico Police Department.
We're very excited to continue our work in Puerto Rico and build upon our relationship representing over 10 years should this new contract be awarded and formally executed.
Shotspotter momentum is clearly building and we continue to invest in widening our competitive moat with key new features that support increased law enforcement transparency and effectiveness.
The first of these are ground truth feature provides responding officers the ability to quickly annotate the alert in their mobile app with a metadata description of the disposition of that incident, such as shell Casey evidenced down or victim attendance.
Our shortcuts feature is the media ready digital alerts that can be shared with local broadcast media that shows the approximate location of the gunfire debt on a map with animated dot representing round count combined with a recorded audio snippet of deal alert.
And lastly, our new copter dot feature automatically measures and tracks the time from alert to Dispatch officer response that an agency management can analyze this show overall response times to Shotspotter alerts.
We're also deploying a new acoustic gunshot detection sensor platform that includes a robust azimuth capability and a neural network filtering feature that will further improve our already high accuracy rates. We believe these cumulative enhancements demonstrate our commitment to further invest in innovation and maintain our dominant position.
In the wide area acoustic gunshot detection space.
We are further encouraged by several cross sell and bundle opportunities, we see across our four solution offerings of the safety smart platform.
In the second quarter alone, we closed three cross sales slash bundled deals.
The cross sell and bundle pipeline is growing along with new buying center opportunities that we believe will become a bigger part of our growth story going forward.
And lastly on the product front I'm excited to share that we have negotiated an agreement with pretzel, an early pioneer in developing AI based patrol management solutions to transition their customers to sound <unk> resource router solution as well as acquire their patents in certain intellectual property.
We've already hired their engineering team, who will be working on the transition plan as well as accelerating the current resource router product roadmap.
Resource router provides a unique and proven way to allocate patrol resources in a way to deter crime without making a rest or over policing.
In this era of early retirements recruitment challenges and understaffed departments. We view these capabilities is key in helping agencies do more with less by leveraging technology.
While not material in the near term over time, we believe the combination of cross selling <unk> customers to multiple sound banking solutions and the application of this patent to enhance our platform will be a meaningful value contributor to the company and facilitate our application of AI and machine.
Turning technology to public safety.
In conclusion, we're maintaining our full year revenue guidance in the range of $92 million to $94 million for 2023, while adjusting our full year adjusted EBITDA margin to be in the range of 16% to 18% of revenues in.
And with that let me turn the call over to Alan.
Thank you Ralph.
We're pleased with our performance in the second quarter as Ralph mentioned this quarter. We went live in seven new Shotspotter cities and one new University and expanded in seven current cities and one current University.
We're continuing to see an increase in the interest of our solutions across our safety smart platform.
At this point, we expect to add approximately 140, new miles shotspotter coverage this year, almost 40% higher than 2022.
In Q2, we also contracted with two new case builder customers and three new crime tracer customers.
Our bundled product strategy appears to be working well as we are starting to see a dramatic increase from customers, who would likely contract with multiple products from our safety smart platform.
Let me provide more details on the quarter and then I will share some thoughts around the balance of the year.
Second quarter revenues were slightly ahead of expectations at $22 1 million, a 10% increase over $20 million in the second quarter of 2022.
Revenue increased as our deployed miles are up year over year.
Gross profit for the second quarter of 2023 was $12 7 million or 57% of revenue.
<unk> 11, 6 million or 58% of revenue for the prior year period.
We expect gross margins to improve in the second half of the year. After we awarded the large case better contract with the department of corrections customer.
Our adjusted EBITDA was down to $2.4 million this year from $4 $1 million last year for the second quarter due to some onetime expenses that totaled approximately $1 $7 million.
As a reminder, adjusted EBITDA non-GAAP financial measure is calculated.
Taking our GAAP net income or loss and adjusting out interest income income taxes, depreciation amortization and impairment stock based compensation expenses and acquisition related expenses, including adjustments to our contingent consideration obligation.
Turning to our expenses, our operating expenses for the second quarter were $15 million or 68% of revenues.
$8 4 million or 42% of revenues in the second quarter of 2022.
Operating expenses included higher costs, primarily due to personnel expansion.
And you'd high legal expenses and approximately $1 $7 million related to items, such as approximately $500000 related to a companywide all hands meetings tied to our company name and product rebranding launch.
Over $800000 in accelerated intangible amortization.
<unk> to our forensic logic acquisition.
A write off related to unpaid invoices from Puerto Rico, and a couple other less material items.
That said operating expense for the second quarter were offset by contingent consideration adjustment a reduction of approximately $1 million related to the potential earn out payments associated with our forensic logic acquisition, which had been reduced for 2023 due to a reduction in the value of some expect.
Good contracts.
Breaking down our expenses sales and marketing expense for the second quarter was seven 4 million or 34% of soda revenue versus $5 8 million or.
Or 29% of total revenue for the prior year period.
The increase in costs was related to the above mentioned items.
Our R&D expenses for the second quarter were $3 1 million or 14% of total revenue.
Compared to $2 5 million or 13% of total revenue for the prior year period.
We continue to invest in increasing the functionality of all of our products.
G&A expenses for the quarter were $5 $5 million or 25% of total revenue.
<unk> $3 6 million or 18% of total revenue for the prior year period.
G&A expenses do not include any changes in the fair value of the contingent consideration.
The increase in G&A expenses was primarily related to increased legal costs increased personnel related costs higher consulting fees and some business acquisition costs. We expect our G&A expenses will continue to stay similar to Q2 in absolute dollars as our company grows that's bad.
The third and fourth quarters, we expect that they will decrease as a percentage of revenues from what we experienced in Q2.
Our GAAP net loss was $2 7 million or 22 per basic and diluted shares for the quarter based on $12 2 million basic and diluted weighted average shares outstanding.
This compares to net income of $3 million or an income of 25 per basic share and 24 cents per diluted share for the second quarter based on 12, one and $12 3 million basic and diluted weighted average shares outstanding respectively for the prior year period.
Our adjusted net income for the second quarter.
It was a loss of $3 5 million or a loss of 28 per share based on $12 2 million basic and diluted weighted average shares outstanding.
This compares to a loss of $427000 or a loss of <unk> <unk> per share based on $12 1 million basic and diluted weighted average shares outstanding for the prior year period.
Adjusted net income a non-GAAP financial measure.
Calculated by taking our GAAP net income and adding back acquisition related expenses, including adjustments to our contingent consideration obligation.
Deferred revenue at the end of the quarter decreased to $39 million from $43 7 million at the end of the fourth quarter 2022, and the decrease was primarily related to the timing of renewals.
We ended the quarter with $3 $9 million in cash and cash equivalents.
First is $10 $5 million at the end of fourth quarter 2022.
The decrease is primarily related to almost $27 $6 million in accounts receivable.
We had at the end of the second quarter, some of which has already been collected.
Our current cash balance.
Greater than $10 million.
During the second quarter, we also repurchased.
100401 of our shares at an average price of $23 79 for.
For approximately $2 $4 million.
We have approximately $25 million available on our line of credit if ever needed. So we still have no short or long term debt outstanding.
Turning to our full year 2023 outlook.
Maintaining our full year revenue guidance range at $90 million to $94 million.
But reducing our adjusted EBITDA margin to 16% to 18% based on the increased expenses incurred during the quarter and the ongoing legal costs that are higher than expected now.
Now back to Rob for some final thoughts and then we'll be happy to take your questions.
Thanks, Alan before we take your questions I wanted to give a personal shout out and thank you to our project management and field services teams that really stepped up and had a phenomenal first half performance of go live activity this year.
I also want to thank our incident review center customer service and Dev ops teams for executing to one of the smoothest drama Free July 4th holidays, we have ever experienced in the 10 plus years I've been with the company.
Companywide collaborations and collective passion for our purpose sets us apart and is literally saving lives every single day.
And with that we'll now take your questions.
Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by one on your telephone keypad.
Should you wish to cast as a request. Please press the star followed by the tier one moment. Please for your first question.
Your first question comes from the line of Richard Baldry. Please.
Please go ahead.
Thanks.
You mentioned that there could be upside to another 10 miles in the second half added Doug what the swing factors there or is it time to get contract scale or is it more deployment or maybe a little bit of both.
Yes. This is Ralph Richard Thank you very much for that question, it's a little bit about we have a number.
<unk> that are in the.
Last stage of being negotiated and to the extent that we're able to kind of bring those over the wire and book them soon enough to be able to staff them with project managers and get them deployed before the year end thats, what that extra 10, plus miles could potentially be.
Yes.
Okay.
I think I heard that the large.
Keith builder deal contract was actually closed in the second quarter.
If I heard that correctly could you maybe talk about the factors around deploying that what needs to be done to deploy it sort of around the Rev. Rec when that could start to impact the P&L does it scale over time, just any color around how that would work in the future.
Yeah. So this is Ralph again, yes, so let me let me correctly, we havent formally closed that transaction yet that's still very much in the pipeline and being worked in fact.
Ran into a bit of a delay which is the bad news I guess the good news is that part of the delay was due to negotiating another year.
Contract on that debt deal previously I think we've talked about it being a five year kind of $16 million deal. It has now been extended to six years and <unk> come in at approximately $18 million.
So that is still very much in the pipeline and we're hoping to get that close in the next quarter.
Okay, Great and then on the bundled sales can you maybe talk a little bit about how that process is working are you leading with that are you finding they're sort of inbound interest one year approaching on that.
And is that a few of your salespeople are sort of running with that.
As a primary or is that really across the board for your for your sales guys.
Yes. So this is Alan I'll answer and then Rob can add to it is across the board for all of our salespeople. The Commission's plans. We set up includes all of the different products that we're selling right now.
And we're finding that when we talk about one particular solution that customers as well I also heard about this or in that case, we currently telling about the other solutions and even if they have not asked for a data issue information, who can say oh by the way. We also had this and this that also might be in.
<unk> to you such as it was to customer X y or Z. So it is something that we're hearing a lot more interest in.
And people that are looking for the bundled products.
And.
And pushing that is there some sort of concept of <unk>.
Take it bolt upfront and do it that there is a discount or a better pricing associated with that are you.
Just feel that when you are in implementing its easier to do.
Bulk at the same time, so the clients are just happy to get it done in one shot.
Yeah. This is Alan again, great question now we are bringing a slight discount it's not significant.
You start, adding the additional contracts, but it is slight dip.
Our discount and enough that people are taking advantage of it.
Okay. Thanks.
Thank you and your next question comes from the line of Mike Latimore from Northland Capital. Please proceed.
Hi, This is <unk> on behalf of Mike Lattimore.
You tell me what percentage of the bookings in the first half of the year came from the tier four entitled fight the deep.
Yes, I think I'll try to answer your question I'm not sure it.
We heard it correctly correctly so please.
Jump in where if we run I think we're saying that we booked a number of cities.
Both new cities as well as expansion cities, along with a couple of new universities I think sum total when you look at our our go live activity for Q1 in Q2, plus what we have on tap.
Currently that's booked in staff and project, we think we could get to 140 square miles of deployment, which is 20 miles ahead of what I think we originally talked about in terms of the plan. So we're we're well ahead on the core part of our business with respect to domestic acoustic gunshot Myles go.
Like does that answer your question.
Yes, but what percentage of it comes from the Italian sports, Dave Dyer place to be.
Okay.
Yes, I guess.
What we would say is.
In terms of the things that we had we there are a couple of contracts that went live where it started to go live and.
Whereas signed actually in Q2 that we were awarded by the cities.
In the second half of last year. So for example, if you talk about Suffolk County, where Cleveland, we mentioned those.
In the fourth quarter last year, but they didn't actually get signed until the first and second quarters of this year.
So we are seeing more.
New cities that are coming in sometimes it takes a little while to say they're approved at the city council to actually get signed.
Under contract.
Alright got it could you give some color on what kind of gross margins. We can expect for the second half of the year.
Yes sure. So this is Alan again.
We did see an increase in gross margins first quarter was only about 55%.
Now back up to 57%, we are expecting gross margins to increase.
Continuing into Q3 and Q4.
Some of those are related to where we expect quarter weak through to get back under contract that will significantly improve the gross margin as well as the department of corrections contract. The large one we've already incurred a lot of the costs related to that revenue that's coming in so it is going to come in with a higher gross margin as well.
We would expect and hope to have that gross margin pretty close to 60% by the time, we ended the year.
Great. Thank you.
Thank you and your next question comes from the line of Jeremy Hamblin from Craig Hallum Capital Group. Please proceed.
Hey, guys. Thanks for taking the questions.
I wanted to come back to that.
Expense side of the business the operating expenses and just make sure that I had a good understanding of expectations going forward.
Starting with the sales and marketing costs, which.
Accelerated you'd noted.
But you've made some investments looking to drive the business and I just wanted to understand.
Seven 4 million in Q2.
I think probably one of the biggest step ups may be the biggest step up you guys have had.
Any quarter sequentially since you've been public.
Okay.
If any of that one time is that kind of $7 million plus really the range that we would be thinking about on a go forward basis.
How how should we be thinking about that.
Into 2024 as well.
Yes, Jeremy this is Alan excellent question and thank you for asking because it.
It is Israel.
Mmm, so that half a million dollars is a one time cost as well, it's not going to make her and then so basically that's already 1.3 to one six that takes you back down to almost exactly where we were last year. We have added some cost we've added about a million dollars in terms of actual personnel and things like.
That so you can see a couple of hundred thousand dollars that are increase in this quarter, that's what's going to continue.
But the rest of that is not that's incredibly important to understand so what do you think about you know sales and marketing at 34%. This year, we're expecting that to go back down to around 28% as we go forward.
Got it and and when you say, 28% you're talking about in second half of 23 per.
<unk> revenue.
Yeah, I I'm, referring 20 per cent that was close to what it was in Q1. So we're expecting to go back down or or maybe even a little lower as our revenues continue to increase so it's.
It's definitely not going to be anywhere near 34 per cent that we have this quarter.
Right now understood that okay and then.
The Jna, though it sounds like that is more of a a step up I'll be at that there's also some things that are maybe one time in nature.
But just a little more it sounds like you think yeah.
Go ahead and again this Allen Allen answer as well there are some one time and it said.
A little hard to stay one time cause you can't always exactly say, it's only one time when you have things that are related to bad debt or acquisition related they rarely happened, but they're not necessarily one time that said there was almost a half a million dollars in queue too religious to those two exact things.
You know so those we hope to not recover the the other stuff that's a little harder to say is in terms that legal the legal continues to be a little higher than we would have expected would continue to get more subpoenas.
Then we have in the in the past, but not in the past year they've been higher.
Look at the past four to five years significantly higher than that but we're also getting better at how we are responding to those so it is something that all the legal expenses are probably gonna stay a little higher than we had hoped and.
We're hoping that we can reduce those by being better at how with those so G&A is gonna stay a little higher in terms of actual dollars, but it's definitely going to be a lower percentage as the top line revenue continues to grow.
Okay got it and then this is a little bit more longterm thinking, but it's it's such a significant change here in in the EBITDA margin expectations right where you.
You know I think we had been looking at kind of mid twenties now we're located at.
17% at the midpoint of your guide.
You know on a go forward basis, you know it does sound like the you know the business is going to carry a little bit more expensive than previously thought for a variety of reasons.
What would your you know with a more reasonable target I assume that you guys.
<unk> <unk>.
Plan to get back into the 20th next year is that fair.
Yeah, There's now and then I'll start with Ralph Arizona, Absolutely and part of the reason is if you think about that 1.7 million.
That we <unk>. This is not going to recur that's gonna even if you just added that back the number goes up we're definitely gonna be north of twenties. We go into next year. The other thing. It's also really important as we have said this a couple of times as we've already staffed up.
The majority of the people that we're gonna need to do this department of corrections contract, which brings in about $2 million a year in subscription as well as you know between a million and two years 2 million a year in professional services as well. So those are gonna come with a significantly higher gross margin which is.
Gonna slow down at the bottom line and also increase adjusted EBITDA.
Contribution actually gotcha, yeah, yeah.
<unk>, yes, and I would just add to I think we made very prudent investments by kind of putting the pedal to the metal on sales and marketing because we have <unk>, we saw unique opportunity to really scale and grow the business and this particular moment and I think it's fair to say even in a very short term basis with respect to the performance were <unk>.
<unk> miles caden status pain up it was very prudent for us to do it you know we've gone from going live with 100 miles for I think the past two years in a row. We're now stepping it up we're talking about 140 to possibly 150 miles that's a 40% to 50% increase and that doesn't happen like magically it <unk>.
Happens, because we're very intentional about making investments and kind of go to market motion and so we thought it was prudent we thought it was prudent to make those investments and be a little bit more I would say kind of generous in terms of how we invest it because we saw an opportunity to really accelerate our footprint in acoustic gunshot detection.
And it's paying off it was a smart thing to do.
Thanks for the <unk> best wishes.
Okay. Thank you want.
Thank you once again, so did you have any questions <unk>.
The one on your telephone keypad.
And next question comes from the lineup Jonathan Haver.
<unk>. Please go ahead.
Yeah, Hi, guys good afternoon.
So I I I believe there was a pipeline state and federal opportunities came along with with forensic logic I just wanted to be clear did the accelerated any of <unk> wasn't related to any potential loss customers there.
Yes. This is this is Alan reported that the acceleration of the.
As it is totally related to the name change has nothing to do with that that said. We also did have continued consideration adjustment, which was about a million dollars that was related to forensic logic, a slight delay in some of the contracts the week that we are.
Getting uhm, but I also want to say well, while we had to reduce that relate to the numbers tied to the earn out they're also gonna grow about 30% from last year in terms of the revenues that we're getting from forensic logic. So things are still going well. We just had two from an accounting perspective make that adjustment related to the or.
<unk>.
Okay that that's helpful. So it sounds like you can still feel pretty comfortable with the demand environment looking at that products specifically.
Yeah, absolutely yeah 100 per cent in fact, one of the bundled deals that we talked about it was actually led with the crime trace a solution that actually brought in the investigate solution behind it.
Okay, Yeah that that's that's great to hear it off I, just just to be clear that you have been the right after related to Puerto Rico is that you know.
Is that a risk did you continue to say that I know you touched on a contract briefly but.
How do you meet a potential.
Further right down on something that contract.
Hello. This is al and we we don't expect any right for the right time to that that was really tied to the uncollected collectible receivable and we are now is Ralph mentioned waiting for the results of of a multi year contract with them again.
We don't expect that to record.
Okay. That's good that's good to hear and then you know just the the the go to market and as soon as you you you catch on this briefly but but specifically.
It seems to add more reps per territory I'm just curious.
Hi, you're tracking to those plans.
I guess, even more importantly, how are you managing account conflict you add more <unk> <unk> territory.
What's the delineation Mark I assume it relates to the different tiers, but that's how you may have to do that.
Yeah, Great. This is Ralph I'll I'll answer that in Great question I think it first starts with amazing sales leadership, which were incredibly grateful to have in our in our company with ourselves leader Gary Bond. Your as you call. The way we're organized as we have territory roster responsible for geographic territories in there.
Collaborating with overlay reps, if you will that have specialties be it you know crime tracer case builder.
<unk> gunshot detection with respect two shotspotter, so they're basically quarterbacking the opportunities within their particular territory's what's been exciting about some of our platform extensions is that we're now being able to where now and we're now in a place that we can go after different buying centers and what we traditionally.
Been able to execute towards so there's obviously the state and local are very let's say local law enforcement agencies that has been really a part of our DNA for a number of years, we're adding onto that new buying centers that are these kinds of state level agencies. In fact, we've seen some success already with the crime tree.
<unk> solution with very successful state sales, we talked I think like late last year about a seven figure deal that was taken down for the state of Massachusetts, where now seen some state level opportunities for case builder solution. We actually won an award at a state investigative agency for a tastes builder.
The date of case management solution completely different buying sooner than our traditional local law enforcement and then there's another opportunity that opens up for us to go after a local law enforcement agencies that don't have the ongoing persistent gun crime that we've been in traditionally focus on with respect to shotspotter. So there's a lot.
Lot of opportunity out there for us and we're finding kind of going into markets with a kind of platform discussion is very very helpful. Because often times, we find that we're thinking they might be interested in one thing, but when they see the entire sweet story, they're actually interested in maybe one or two other things as well so.
Pipeline is continuing to grow and build and we're gonna see you're going to see more from us in terms of how we are actually integrating these products technically to make them work more effectively with one another so we're in the early stages of this and very excited about the response that we've seen today.
Yeah, that's great very helpful. Thank you.
Thank you once again should you have a question of the <unk> the number one on your telephone keypad.
Thank you <unk> question and answer session.
<unk> taken.
Taken in the context time thinking and first time of a nation steam my email <unk> S. S. T I at Gateway fashion T. I V E Dot com.
I would like to take a call back over to Mister <unk>.
Thank you.
Great. Thank you very much we really appreciate everyone's questions and engagement and looking forward to continuing our conversations with you on one on one calls thank you very much.
Thank you for joining us for today's call him and now just connect.