Q2 2024 Skillsoft Corp. Earnings Call
Greetings and welcome to the skill soft second quarter 2024 financial results Conference call.
At this time all participants are in a listen only mode.
A question and answer session will follow the formal presentation.
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As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host Chad Lyne head of Investor Relations. Thank you you may begin.
Thank you operator, good afternoon, and thank you for joining us today for Skillsoft earnings call to discuss our results for the second quarter ended July 31 2023.
Participating on today's call are Jeff Tarr, Skillsoft, Chief Executive Officer, and Rich Walker skillful Chief Financial Officer.
Today after market close <unk> issued a press release announcing its financial results, which is available on our Investor Relations website.
Before I hand, the call over to Jeff I want to remind you that today's call will contain forward looking statements about the company's business outlook and expectations, including statements concerning financial and business trends, our expected future business and financial performance financial condition and market outlook.
These forward looking statements and all statements that are not historical facts reflect management's current beliefs and expectations as of today, and therefore are subject to risks and uncertainties that could cause actual results to differ materially.
For a discussion of the material risks and other important factors that could affect our actual results. We refer you to our most recent Form 10-K, and 10-Q filings with the Securities and Exchange Commission.
During the call. We will also discuss certain non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles are.
A reconciliation of the non-GAAP financial measures included in today's commentary to the most directly comparable GAAP financial measures as well as how we define these metrics and other metrics is included in our earnings press release, which has been furnished to the SEC and is also available on our website at www Dot Skillsoft Dot com.
After our prepared remarks, Jeff and rich will be available to take questions.
It's my pleasure to turn the call over to Jeff. Thanks, Chad.
Good afternoon, and thank you for joining us.
Our team executed well in the second quarter bookings and revenue were both up for the total company driven by high single digit bookings growth in our high margin SaaS based content and platform segment.
Further I'm pleased to report bookings and revenue were up sequentially and our instructor led training for Iot segment, which we believe is now positioned for a return to growth on a year over year basis.
On the bottom line, we continue to lead our industry peers and profitability with adjusted EBITDA up on both the dollar and margin basis compared to the first quarter.
As I will share today generative AI has emerged as a new catalyst for growth <unk>.
This important technology has created a new critical re skilling opportunity with customers and prospects that plays to our strengths and that we have been quick to see us as an organization.
Our LTM dollar retention rate was 101% up 300 basis points and is a testament to the value we deliver to customers.
We secured several seven figure contract renewals in our federal government business, a multimillion dollar renewal with an international logistics and package delivery company and.
An expanded relationship with an international food products distributor among others.
We continue to win new customers and the strength of our enterprise grade solution.
During the quarter more than 140, new customers chose skillsoft to support their enterprise learning in workforce transformation imperatives.
New customer wins included six figure contract with a global specialty chemicals company, a leading provider of helicopter transportation solutions, a world leader in systems to lower carbon emissions, a global insurance claims settlement provider and an international provider of products for sustainable mobility.
New customers like these are telling us that our ability to deliver on their complex workforce transformation needs is unrivaled due to our unique integration assessments micro videos hands on learning coaching and instructor led training all on our cutting edge AI driven learning.
Experience platform.
While industry peers focused primarily on catalogs of video content.
We are increasingly winning based on our ability to deliver transformative learning experiences with measurable learning outcomes and tangible business results.
I'll build on a scientifically validated approach designed and optimized for the way people learn online.
Our unique competitive advantage is driving strong growth in usage and engagement across what we believe to be the largest community of enterprise learners.
In the past year and a half we've grown monthly active users nearly 60% and of course launches more than 40% as well as of course completion rates that are well above industry averages and more than 80%.
Our rich metadata combined with our AI enabled platform and a content creation capabilities enables us to optimize the learner experience inside the enterprise.
As mentioned earlier one of the important contributors to our growth strategy has been our early moves to position skillsoft to benefit from January of AI.
This technology has created a new re skilling imperative for our customers as nearly all companies of scale grapple with the effects. It is having on the nature of work.
As Skillsoft, we believe that generative AI will affect every knowledge worker job and the companies and individuals that ignore it will be left behind.
We also believe that we have a solid first mover advantage in January they are born out of the fact that we are both a plaque clearing developer and content creator Dell, we have a long history in AI and that we operate across a wide range of modalities in content categories.
The strength of our position in this new domain is further enhanced by our acquisition of Codecademy with its hands on learning platform.
Further preparing individuals and organizations for a world of generative AI is about more than just the technology and the skills to use. It. It is also about leadership and business skills and compliance and here too we have unique capabilities that position skillsoft to lead.
I'm pleased with the speed with which our organization has moved to seize the generative AI opportunity with a shared belief that it changes what we teach how we teach and how we work.
We now have several dozen AI offerings on Codecademy and year to date have enrolled more than half a million learners and these AI forces.
We also recently developed and released a plug in for open AI chat CPT that recommends personalized and relevant pro Academy courses to users that's meeting and serving learners from within the chat GPT interface and expanding the reach of the Codecademy platform.
And we've rolled out a check GPT aspire journey designed to equip organizations with the skills needed to use the technology productively and ethically across the enterprise.
Which provides experiential active learning to regenerative AI coaching tool.
Pacey helps employees develop business and leadership skills by creating a safe place to practice crucial business conversations with real time personalized feedback.
The initial market reaction to Casey has been tremendous.
According the Chief strategy Officer, and principal analyst at Brandon Hall group, a leading industry analyst quote.
<unk> soft Casey is the breakthrough technology for leadership development that organizations have been waiting for.
It's the most progressive advancement I've seen to date.
Skillsoft has effectively combine the on demand support of a virtual assistant with leadership and management training to create a transformational new way of building interpersonal skills.
And quote.
Casey has wide ranging applications and use cases far beyond our initial beta release and I'm excited to see this innovative solution continued to evolve and move into general availability this quarter.
As these examples highlight we are committed to leading the market with innovation that delivers enhanced customer value and outcomes enables upskilling and reskilling across the enterprise and develops and grows learners for the jobs of the future.
I am proud of our team and the demonstrable progress we are making as an organization.
Across the globe. The Reskilling Revolution is unlocking new opportunities for Skillsoft and propelling us toward what we anticipate to be a future of accelerating profitable growth and value creation.
With that I'll now turn the call over to our CFO Rich Walker to review our financial results rich.
Thanks, Jeff and welcome everyone and thanks for joining today, our teams performed at a high level as we delivered a strong second quarter and achieved an inflection to growth in both bookings and revenue for the total company.
We continued making targeted investments to accelerate growth and drive the innovation agenda that Jeff spoke to while also generating higher profitability compared to the first quarter.
Moving now to our financial results, let's turn first to bookings total bookings were $129 million in the quarter, reflecting growth of 4% year over year.
Content and platform segment bookings of $83 million were up 7% year over year and 2% on an LTM basis with the quarterly expansion led by double digit growth in our tech and Dev offering.
Which includes Codecademy BBB.
In our Iot segment bookings were $46 million.
Down less than 1% year over year, and a significant improvement over prior quarters, our content platform dollar retention rate or <unk> was approximately 101% on an LTM basis up approximately 300 basis points from the year ago.
Period for the quarter <unk> was approximately 99% up.
<unk>, a 100 basis points from the prior year highlighting the ongoing progress. The team has made to bring greater value and growth to our customer relationships. As a reminder, given the quarterly seasonality in our renewal base content and platform bookings and.
<unk> should primarily be viewed and assessed on an LTM basis.
Moving to the P&L total revenue, which lags bookings was $141 million in the quarter up approximately 4% year over year and marking an important return to growth for the total company.
Consistent with last quarter, approximately 73% of the revenue was in our content and platform segment and approximately 27% was in our Iot segment.
<unk> and platform segment revenue, which is primarily subscription based and recurring in nature grew 4% year over year to $103 million.
With growth across all content and platform areas, including Coke category.
<unk> segment revenue declined 9% year over year to $38 million.
As we continued to lap the partner subsidy program change from the prior year period.
We are pleased with the progress we are seeing in the Iot business with bookings and revenue growth on a sequential basis compared to Q1, and an expectation that <unk> will become a net contributor to total company year over year growth as we move into the second half of the year.
Shifting to profitability as we outlined at the start of the year, we are making targeted and strategic investments throughout the business that we believe will drive competitive differentiation and accelerated growth rate greater scale and an industry leading margin profile.
Over the long term and we will always continue to identify areas to simplify our operating model and to enhance our cost structure I am pleased with our progress on both fronts as we double down on high priority growth areas like generative AI, while dialing back from areas where.
We arent seeing appropriate returns.
Walking through our expenses all of my references will be on a non-GAAP basis with the GAAP to non-GAAP reconciliations included in our earnings press release.
Cost of revenue of $40 million or 28% of revenue was up 15% year over year, primarily due to courseware and mix changes in our Iot segment and employee related costs to support the revenue growth and our content and platform segment.
Content and software development expense of $16 million or 11% of revenue were up 1% year over year.
Selling and marketing expense of $41 million or 29% of revenue were up 2% year over year with growth in bookings and investments in our go to market transformation and in sales enablement activities being partially offset by facility savings.
General and administrative expenses of $20 million or 14% of revenue were up 9% year over year, primarily due to the timing of our corporate bonus reversal tied to our performance in fiscal 2023.
Total operating expenses were $116 million or 82% of revenue on a year over year basis operating expenses were up $8 million or.
Or 7% due primarily to the aforementioned bonus reversal last year on a sequential basis compared to Q1 total operating expenses were up less than 2%.
At the bottom line, adjusted EBITDA was $25 million or 18% of revenue compared to $33 million or 23% of revenue in the prior year, which as I noted earlier was primarily due to last year's bonus for reverse.
We are pleased with the sequential progression and incremental profitability, we are driving with adjusted EBITDA up approximately $4 million and margins up approximately 200 basis points compared to the first quarter of this year.
Our GAAP net loss was $32 million or <unk> 20 on a per share basis, our adjusted net loss was $29 million or.
Or <unk> 18 per share.
Moving to cash flow and balance sheet highlights on a year to date basis cash flow from operations was $2 million and we invested $9 million in capital expenditures and capitalized internally developed software as a result year to date free cash flow was negative $7 million.
Compared to negative $22 million in the prior year period.
As a reminder, given the seasonality in our content and platform bookings the second and third quarter are generally cash consuming quarters, while the first and fourth quarters are generally cash generative we.
We ended the second quarter with a solid cash position and ample liquidity with cash and cash equivalents of $148 million and restricted cash of $5 million.
We did not repurchase any shares during the quarter under our share repurchase authorization.
Turning to debt and leverage we had $40 million drawn against our $75 million accounts receivable facility and $586 million outstanding on our term loan facility, which matures in July of 2028.
Recall the term loan facility amount on the balance sheet is net of original issue discount and deferred financing cost was.
Total net debt was approximately $473 million, resulting in net leverage of approximately four nine times, our LTM adjusted EBITDA.
Wrapping up I would summarize the quarter as one in which we are proud of how our teams performed we continued to innovate across the organization and brought differentiated capabilities to market as Jeff shared with you we delivered year over year growth in both bookings and revenue for the total company or <unk>.
Content and platform segment had a solid growth quarter with exciting new customer wins and.
And an LTM dollar retention rate of 101%, we feel our Iot segment has turned a corner with bookings and revenue up compared to the first quarter and an expectation that Iot will return to year over year growth in the second half and we successfully inverse.
<unk> for growth, while also driving higher adjusted EBITDA sequentially.
We are of course mindful of the broader macro remains fluid and dynamic, particularly given the typical fourth quarter seasonality that remains in front of us.
That said given our strong execution year to date and our current views for the balance of the year, we are reaffirming our core.
Outlook metrics and our expectation to be free cash flow positive for the full year.
As a reminder, our outlook calls for total bookings of $610 million to $640 million.
Revenue of 555 million to $585 million and adjusted EBITDA of $100 million to a $105 million.
With that I'll hand, the call back to Jeff.
Thanks, Rich before we turn the call to Q&A I'd like to say a word of appreciation to all of our team members around the globe for their strong performance and their tireless commitment to delivering transformative learning experiences to our customers and their learners.
And to our stockholders and we appreciate your support as we continue to make important forward strides in executing our strategy in a way that we believe will generate profitable growth and long term value creation.
Operator, you May now open the call for questions.
Thank you and.
And ladies and gentlemen at this time, we will conduct a question and answer session.
If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate that your line is in the question queue.
You May press Star followed by the number two if you would like to remove your question from the queue.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, while we poll for questions.
Thank you and our first question comes from Robert Simmons with D. A Davidson. Please state your question.
Hey, Thanks for taking my question. So I guess first on Casey just to clarify is it NGA now or is it planned to be between now and quarter end.
It's in beta today with dozens of customers. It is.
Available on our site for those who would like to add themselves to the beta less and it will be in general availability within a matter of weeks.
Feedback on <unk>.
Alright cool.
And then.
Any color.
On your churn rate.
The gross churn.
And then can you remind us kind of the.
The various pieces of churn and upsell.
Pricing kind of fit together for you.
Defeat into your net retention number.
Well, we we.
Sure our dollar retention rate, which is up 300 basis points year over year, we don't typically provide more granularity and back.
Rich is there anything.
The only point I'd make is it's important to look on an LTM basis, because there is a lot of fluctuations in some other quarters.
Terms of just general color how to think about it our large enterprise accounts have much higher retention or SMB accounts have lower retention.
So that would be one one place where we see.
Differentiation between different customer categories.
Got it and.
Maybe can you talk about what youre seeing in terms of pricing.
Are you.
Or you're talking to kind of a bifurcation of the market are you still seeing that.
Kind of general trends.
And when it comes to pricing our price increase this year generally was about 6%, but keep in mind that is on bookings.
That is heavily weighted to the fourth quarter.
That's significant.
And that our average customer contract language north of two years.
So it does take quite some time for pricing to flow through to revenue and EBITDA.
Got it okay. Thanks.
And then can you talk a little bit about the Salesforce <unk>.
<unk> been ramping up some relatively newer reps how's it been going.
And any other color.
Sure.
Tell you what we've been seeing is.
First of all.
Our competitive advantage is strong guest with those customers who have been most complex workforce transformation needs.
And where the skills gaps are most acute and the reason for that is our blended offering.
Cuts across micro videos assessments and structure of our training coaching and mentoring and all the hands on learning tools that we have in our portfolio really lends.
Lends itself.
Lynn those significant challenges.
To sell that kind of offering by the way. We also have a professional services or sell that requires a salesforce that is.
<unk> engaged in a consultative sales process.
Able to engage at more senior levels in the organization and so we've been on a multiyear journey to build that capability within our organization. We have made good progress there is more progress to be made to realize the full potential of what we have in front of us.
Got it great.
I'll hop back in the queue.
Thanks Robert.
Thank you. Our next question comes from Raimo <unk> with Barclays. Please state your question.
Hi, This is Shawn on for Raimo, Thanks for taking our question first.
First I wanted to ask generally what youre seeing in the quarter. That's underpinning the continued strength in content bookings and particularly how would you balance.
Central tailwind from more engagement from things like Gen AI with.
Kind of a consolidation trend, but that's something that we've seen from other HCM players kind of consolidating a bunch of point solutions. So given the breadth of your offering not sure if that's something you're seeing from your customers.
We certainly do benefit from consolidation of point solutions.
We benefit from significant win backs from customers that may have made a decision based on price in the past and are coming back to us because they have significant workforce transformation challenges and are focused on outcomes and results. We win when the customer is focused on outcomes and results.
We win when the customer has more complex workforce transformation needs. They can't just be met with <unk>.
Video recordings of lectures, but requires deeply understanding the customers' workforce transformation learning priorities and tailoring solution to those priorities using the breadth of content that we have and the breadth of modalities, that's where we win that's where we're winning more and more.
Customers like <unk> that we talked about last quarter customers like the ones that we cited on the call today and from my perspective, we're really just getting started with that.
Now you also mentioned generative AI and what we see with generative AI is opening up a new skills gap within our customer base.
Almost every conversation we have with customers these days.
AI comes up and the fact that we can address those needs with very complex complete workforce transformation solutions that combine leadership and business skills, the technology compliance and deliver that at scale. That's a that's an advantage that I believe we have.
Great and then quick follow up I wanted to ask on the federal pipeline. This year compared to last there were some incremental things that you have.
Fed ramp on <unk> was last year, but.
Is that leading to better retention of those customers and then us.
Fed ramp around the coaching offering is that leading to larger deal sizes for the.
The federal pipeline.
Any color there going into the big yes.
That question is yes, and yes, we have.
Strong lead in the federal government with our offerings, including with coaching of the fact that we're fed ramp certified with our coaching offering has been a real advantage as has being fed ramp certified with our platform and content offering but an advantage over the last couple of years. So we believe that.
That the federal government business is a strength of the company and we expect to get more and generate more opportunity. In fact later this week I'm going to be in Washington, DC, We have our big perspective customer event, and we have really strong participation from the federal government.
Great. Thank you.
Thank you. Our next question comes from Raj Sharma with B Riley. Please state your question.
Hi, Thank you for taking my question.
Just going back to the January with AI.
Course war and how that relates to the Upskilling.
Firstly is that a part of.
On the other programs in the course work are part of quality ketamine integrated into <unk> or are the Iot part of the business.
And how do they impact.
Retention and business and sort of growth.
In.
Your customer.
So the answer to that is all of the above.
We have codecademy courses that are focused on generative AI.
We have content within the core of our platform and content business that is focused on generative AI, including very complete learning journey focused on generative AI.
And also we have Iot courses, a large suite of Iot courses that has been generating.
Growth of contributing to growth in sales in the Iot business. So we're still early and seeing the P&L impact P&L impact, but we are seeing results and we're seeing uptick and growth in customer conversations and conversions and usage and thats all very encouraging.
Got it so not a material impact on revenues, yet or or profits, obviously, but where do you. How do you see the impact is in terms of new customers or a greater engagement.
On the platform and a better retention.
All of the above we have new customer conversations where our generative AI offering is a differentiator and a conversation starter.
Our Iot business has won some significant new accounts.
Because of the breadth of our Iot offering and generative AI, we're very excited about Casey Casey isn't about teaching generative AI, but it's about leveraging the technology to do something new and important in the learning space. So we're very excited about what we see we see this as a significant.
Tailwind rich has something to add a quick one raj.
Building on Jeff's comments in terms of what we anticipate it isn't only about the technology.
It will also benefit our leadership and business skills KCB M. One example, but it will also become an important compliance area for companies going forward and theyre going to look to us to ensure safe responsible ethical use of the technology through our compliance offerings.
Got it.
Very helpful. Thank you and then just secondly.
Can you give more color on certain customers or groups of customers in certain areas that are.
Getting impacted by any sort of slowdown in UC versus areas that are.
Stronger because of.
The Upskilling. So are there other parts of your customer base that are particularly strong.
Or where you can see up scaling a lot in and parts where the.
Any slowdown in the economy or geographically so are impacting the business.
Well the way, we look at our customer base.
Is two broad categories, we have the category of customers, who have acute work Morris transformation challenges very real skills gaps for them, our offering is critical to their business.
And then there is another category of customers for whom online learning is something that's an employee benefit that it's a nice to have and.
And that's a smaller and slower growing part of our business. So.
Where we see the opportunity is with those customers who have the most complex workforce transformation needs.
The largest portion of our customer base is the largest portion of our market is growing the fastest and thats where were pointing the vast majority of our resources.
Got it.
Alright. Thank you. Thank you for taking my questions and.
Good job congratulations on reporting steady Eddy results.
Thank you.
Thank you and just a reminder to ask a question press Star one on your phone. Our next question comes from Ken Wong with Oppenheimer <unk> Company. Please state your question.
Fantastic Thanks for taking my question.
The first one for you, Jeff, but I think in the past you guys had touched on.
New business, perhaps has seen a little lengthening of the sales cycle I realize.
Total business doesn't depend too much on that but just wondering if you're starting to see that stabilize or improve at all.
I would say that new business has been pretty consistent.
Where we've been seeing.
Big step up in improvement is on the growth of our existing customer base.
I'd say on new business, which for US is a smaller part of our business still are seeing a lengthening of sales cycles.
A little slower, but it's such a small contributor to the business overall that it's less of an impact on our business then perhaps elsewhere.
Do see opportunity to improve our new business growth and we are investing in our sales force and a thoughtful way.
As I mentioned before move up higher than sales organs inside our customer organizations and also engaged in a more consultative sales process and I think that will yield results on the new new business side over time.
Got it got it Super helpful and then rich just on the.
On EBITDA.
Any anything we should be thinking about in terms of back half seasonality.
EBITDA just so we kind of make sure we have our model properly team.
Yep. Thanks.
Thanks for the question I think.
First I'd highlight that the EBITDA grow from sequentially from the first quarter.
<unk> was an important finding in striking that balance of investing in the business still giving some back to the results.
As you think about the full year.
We were obviously comfortable in reaffirming our outlook for the full year.
The margin profile that we enjoyed in the second quarter is consistent with what we expect for the full year.
And I think the expense base will continue to grow to support some of that growth.
The margin profiles not kind of materially change.
We have about 40% of the bookings in the fourth quarter.
It's probably not unreasonable to expect that our second half growth rate quarter over quarter.
We'll be in line, what we enjoyed sequentially in the second quarter.
And.
Sales and marketing, which we are continuing to invest in.
He is going to drive some of that bookings growth you won't see the impact of that in revenue, but youll see it in the expense base.
Got it Okay that is that's all Super Super helpful color I really appreciate it guys.
Yeah.
Thanks, Ken.
Our next question comes from Tom single Hearst with Citi. Please state your question.
Yes, good evening.
Thank you.
Function.
A couple of questions I'm going to start with a clarification really.
We're very clear about the.
12 months.
Tenant retention by target you've got some Puma.
Thanks, Justin.
Bye.
<unk>.
And even if at some point does that just yet.
That's the thing.
Hi, David.
Ken.
Sure.
Tom It's a little mumbled, but I think the question guys.
Was quarterly retention rate compared to LTM retention rate.
I'll, let rich share some thoughts, but the important point to keep in mind is Q.
Q1, Q2, Q3 are very small and so individual wins and losses were anomalies.
And how the timing of renewals and such can can move that data around.
That's why we point dollar retention rate and we've been doing that for quite some time rich what can you say yes.
I'd just clarify the metrics.
LTM, while below a 100%.
The LTM was 101% excuse me up 300 basis points quarterly at 99.
It was still up year over year.
And that trend is noticeable in both the quarter and the LTM, but I'd reiterate jeffs comments. The LTM is the more accurate way to evaluate it.
I think I would just note.
CNS focus on LTM, whether be in the quarter was correctly.
Quarter was bad.
We've focused everyone on the LTM for the last couple of years, we encourage that.
The models.
Alright, So hopefully you can hear me back.
The second question was about target Academy.
Some others have talked about Gordon in demand how are you doing.
Glen market content.
Glenn I was wondering whether or not you're seeing.
<unk>.
Not in the mix given.
Your box demand.
Yes.
Yes, so so.
I got the question again, it's mumble, so if I don't answer Thats exactly right get it afterwards.
The question is about <unk>, and how coke Catamenia performing I'll start out and I know rich has some things to share on it.
First of all co ketamine is strategic and critical to our business.
We've integrated Codecademy.
B to B business into our platform and content business within our B to B Tech and Dev offering so its now deeply integrated the hands on learning as target what we saw customers alongside.
The videos and the coaching and mentoring and the other types of learning labs to hands on learning and it's all in one package.
That was the fastest growing content category within our.
Within our platform and content business.
We've also rebranded our the entirety of our tech and Dev offering as Codecademy, that's something we did last quarter and we did that because frankly codecademy has taught more people to learn to co within any other organization on the planet and it's a very strong brand and leveraging that brand.
Cross the entirety of our tech and Dev portfolio made a great deal of sense.
Rich yeah, sure I double click Tom.
Heard a portion of the question relating to degenerative AI.
And initially I think that segment will benefit.
Accordingly, if you look at the total content platform bookings that grew 7% in the quarter.
The Tech and Dev segment actually grew double digits and that segment is clearly in that segment includes both the code enterprise in the Cote D to C business and that segment benefited certainly from the code attributes.
Barry Chad final question I'll speak loudly.
The cost of AI based tools is that all embedded in guidance.
Not incremental to this.
Costs coming through.
It's all embedded.
Okay. Thank you.
Thank you there are no further questions at this time I'll hand, the floor back over to management for closing remarks.
Thank you everyone for joining us.
I'd be remiss in not taking note of the fact that today is an anniversary of 911 and I do want to express our continuing sense of loss and our gratitude to the nations first responders.
I also want to thank our team members around the world for your hard work and profitably growing our business seizing the.
Opportunity in working together to build on our strong foundation as the global leader in Enterprise learning.
I also want to thank our customers and I'm looking forward to being together with many of you at perspective 2023. This week in Washington, DC and of course, many thanks to our stockholders, we're very grateful to you as well.
Have a good rest of your day.
Thank you. This concludes today's conference all parties may disconnect have a good day.