Q3 2023 Pixelworks Inc Earnings Call
Okay.
Good day, ladies and gentlemen, and welcome to pixel work Inc's third quarter 'twenty to 'twenty three earnings conference call.
I'll be your operator for today's call.
At this time all participants are in a listen only mode. Following management's prepared remarks instructions will be given for the question and answer session. This conference call is being recorded for replay purposes, I would now like to turn the call over to Brett Perry with Shelton Group Investor Relations.
Thank you Andrea good afternoon, and thank you for joining us on today's conference call with me on the call are fixed <unk>, president and CEO tied to bonus and Chief Financial Officer, Eric demand.
The purpose of today's conference call is to supplement the information provided in <unk> press release issued earlier today announcing the company's financial results for the third quarter of 2023.
Before we begin I'd like to remind you that various remarks, we make on the call, including those about projected future financial results economic and market trends and our competitive position constitute forward looking statements. These forward looking statements and all other statements made on this call that are not historical facts are subject to a number of risks and uncertainties that may cause actual results to.
Differ materially all forward looking statements are based on the company's beliefs as of today Tuesday November seven 2023, the company undertakes no obligation to update any such statements to reflect events or circumstances occurring after today. Please.
Please refer to today's press release, the Companys annual reports on Form 10-K for the year ended December 31, 2022, and subsequent SEC filings for a description of factors that could cause forward looking statements to differ materially from actual results. Additionally, the company's press release and management statements. During this conference call will include discussions of certain measures and finance.
All information in GAAP, and non-GAAP terms, including gross margin operating expense net loss and net loss per share.
non-GAAP measures exclude amortized.
Amortization of acquired intangible assets and stock based compensation expense as well as the tax effects of the non-GAAP adjustments. The company uses these non-GAAP.
Measures internally to assess operating performance.
We believe these non-GAAP measures provide a meaningful perspective into our core operating results and underlying cash flow dynamics, we caution investors to consider these measures in addition to and not as a substitute for nor superior to the company's consolidated financial results as presented in accordance with U S. GAAP also note throughout the company's press release and management statements.
This conference call, we refer to net loss attributable to <unk>, Inc. Is simply net loss for additional details and reconciliation of GAAP to non-GAAP net loss and GAAP net loss to adjusted EBITDA. Please refer to the company's press release issued earlier today with that it's now my pleasure to turn the call over to <unk> CEO Todd. Please go ahead.
Yeah.
Thank you Brett and good afternoon, and welcome to everyone joining us on today's call.
Consistent with the preliminary third quarter revenue, we announced in early October we had a solid third quarter results with all financial metrics coming in at or better than the midpoint of guidance.
Total revenue increased 18% sequentially driven by record quarterly revenue in our mobile business as well as seasonally stronger demand in the home and entertainment enterprise market.
As planned during the quarter, we began passing through previously absorbed supplier.
Across our end markets, which contributed to gross margin expanding 260 basis points sequentially.
We also successfully managed opex for the quarter, especially given the significant number of product and ecosystem initiatives. We currently have underway to support future growth.
Turning to our end markets.
Mobile revenue increased 20% sequentially and 37% year over year, achieving new quarterly record and contributing a record 52% of total revenue.
During the quarter, we received positive responses to our newly introduced <unk> gaming experience branding and certification program.
The launch of the first <unk> certified smartphone models were well received by the market with demand for these models exceeding customers' expected unit volumes.
Among these were to new smartphones that had just been pre announced and which we previewed on our previous conference call. As a reminder, these where xiaomi is red meat case, 60, ultra and the one plus <unk>.
Both of these premium smartphones incorporate pixel works X seven visual processor and have contributed to our recent revenue growth.
Also launched during the quarter incorporated incorporating both our X seven visual processor and Iraq certification.
Was the real meat GTE five smartphone.
Built on Qualcomm Snapdragon.
A gen two platform. The <unk> <unk> features a six 704 inch flat display with narrow bezels supporting up to 144, Hertz refresh rate and <unk> Jamie.
With its integration of our <unk> seven processor. This phone leverages all of pixel works core visual processing technology, including our ultra low latency motion engine low power Super resolution and always on HDR, resulting in enhanced visual performance and optimized picture quality for both gaming and video content.
Yes.
As part of our ongoing strategic initiatives to facilitate a cooperative mobile gaming ecosystem. We recently disclosed our latest collaborations with two of the world's largest mobile game studios.
In August we announced perfect World games had incorporated.
<unk> rendering accelerator SDK in the mobile game personified the Phantom mix more commonly referred to as <unk>.
Then in September we announced our partnership with netting these games studio Thunder fire business group and the integration of <unk>.
The release of Revolution mobile.
Based upon the original flagship game Revolution.
When played on a smartphone equipped with one of the <unk> series visual processors, the integration of our SDK rendering accelerator serves as a connecting bridge, enabling these games to be played at the displays for resolute.
120 frames per second while significantly lowering system power over native rendering.
More recently.
In October we completed two notable milestones with the formal launch of our latest X seven Gen. Two mobile visual processor.
Which we unveiled.
<unk> hosted mobile visual computing event in Shenzhen, China.
In addition to being an opportunity to promote the launch of our latest mobile visual processor. The event itself was centered around what we believe to be the future of mobile visual processing and advanced mobile game.
Endorsing and adding.
The vice President of perfect Perfect World Games was a keynote speaker this.
This was followed by customer acknowledgment and members of the pixel works team presenting the benefits of our ecosystem based distributed processing architecture.
Attendees of this inaugural event also had the opportunity to experience live demos.
Five announced higher X certified mobile games.
With regards.
Our new X seven Gen to this latest visual processor takes picture quality to a new level.
In order to achieve this performance, we incorporated newly internally to internally develop.
AI base.
Energy that utilizes our self developed neural network processing.
<unk> enables more accurate upscaling and rendering of gaming content, while maintaining power efficiency.
The overall feature set of our new Gen. Two processor is different from the X seven predecessor, However, both chips incorporated picks of what's industry, leading ultra low latency motion engine mimic as.
As well as other core visual and picture quality enhancement capabilities.
Looking ahead to the fourth quarter and into next year. There are three primary drivers that underpin our current expectations for sustained year over year growth in mobile.
The first is to quickly scale the growth of the gaming ecosystem that we've established with leading mobile gaming studios.
We are working with new and existing studios and are targeting a 400% increase in announced games by the end of 2024.
Speaker 1: next generation SOC by year end. Upon completion of this development milestone, we expect to recognize the final milestone as an R&D credit.
Speaker 1: which will reduce our reported OpEx in the fourth quarter.
Speaker 1: Following the planned delivery of production samples early next year, the new SoC will go into volume production the second half of 2024.
Speaker 1: Shifting to an update on our pixel work Shanghai subsidiary.
Speaker 1: and as part of my industry.
Speaker 2: We are now in the final preparation and tutoring process that is required before an application for listing can be filed.
Speaker 2: Getting to where we are today has taken roughly two years.
Speaker 2: and countless hours of hard work by numerous members of our team.
Speaker 2: With respect to the larger Pixelworks organization and our Shanghai subsidiary being ready, we believe we are effectively there.
Speaker 2: As with any IPO on a major exchange, underlying market conditions play an important role in their ultimate timing.
Speaker 2: Given the current environment for technology IPOs in China, we are closely monitoring market conditions
Speaker 2: And sponsor CITIC Securities.
Speaker 2: While a definitive decision has not yet been made to the respect of the timing for filing an application to list.
Speaker 2: Our continued plan is to pursue a local listing of our Pixelwork Shanghai subsidiary when we believe market conditions are supportive.
Speaker 1: In closing.
Speaker 2: Despite recently heightened macro uncertainty, including indications of weaker global demand and a slower ongoing recovery in China,
Speaker 2: remain confident about our near-term outlook for sustained growth.
Speaker 2: especially in our mobile business.
Speaker 2: specific to the fourth quarter, our current order back-line and visible visual processors.
Speaker 2: fully support achieving continued double digit sequential growth in mobile, while also returning to solid year-over-year top-line growth.
Speaker 2: even with Mobile poised to continue to become an increasing percentage of our overall business.
Speaker 2: We remain committed to and...
Speaker 2: We actually drug MAR' expansion conship with earning operating growth. cin seal quarters.
Speaker 3: Overall, our team continues to execute well on strategic initiatives.
Speaker 4: We should have been in.
Speaker 3: Key to enabling our renewed growth during a broadly challenging environment.
Speaker 3: I am pleased with the recent achievement.
Speaker 3: are all important milestones as well as our expectations to close out the year with a strong fourth quarter.
Speaker 3: With that, I'll hand the call to Haley to review the financials and provide our fourth quarter guidance.
Speaker 5: Thank you, Todd.
Speaker 5: Revenue for the third quarter of 2023.
Speaker 5: increased subsequently to 16 million from 13.6 million in the second quarter and was lower compared to 17.6 million in the third quarter of 2022.
Speaker 6: As Todd previously highlighted, the sequential increase in the third quarter revenue was driven by continued.
Speaker 7: Understand.
Speaker 6: on growth as well as seasonally higher demand in the home and enterprise market.
Speaker 6: The breakdown of revenue in the third quarter was as follows.
Revenue from mobile increased 20% sequentially to approximately 8.3 million, which was a record quarter in terms of mobile revenue, and also the contribution of a record 52% of total revenue.
Home and Enterprise revenue was approximately 7.8 million an increase of 16% sequentially from the prior quarter.
Within home enterprise, sales into the projector and market represented over 95% of the business.
Third quarter non-GAAP gross profit margin expanded 260 basis points sequentially to 43.1% from 40.5% in the second quarter of 2023 and compared to 49.8% in the third quarter.
Board of Quarters, 22.
As discussed on our prior conference call, during the third quarter we began passing through an increased portion of the higher cost of materials that we previously chose not to immediately push through to our customers.
Combined with the anticipated benefits from higher unit volumes.
and absorption as we grow top line revenue. We expect to achieve continued incremental improvement in gross margin over the next several quarters.
Non-GAP operating expenses were 13.3 million in the third quarter compared to 10.7 million in the prior quarter and 12 third and 2.2 of 2022.
With respect to the higher sequential op-ex in the third quarter, as a reminder, operating expenses in the second quarter benefited from a $1.9 million credit to R&D related to our code development agreement.
On a non-GAAP basis, third quarter 2023 net loss was $5.7 million or a loss of 10 cents per share, compared to a net loss of $4.8 million or a loss of 9 cents per share in the prior quarter, and a net loss of $3.2 million or a loss of 6 cents per share in the year-ago quarter.
Changria Brown, Agents of the
The quarter of 2023 was a negative 5 million compared to a negative 4 million in the 2nd quarter. And then I get 2.1M in the 3rd quarter of 2022.
Thank you.
Turning to the balance sheet, we ended the quarter with cash and cash equivalence of 50.3 million, and the company continued to have no outstanding debt.
Shifting to our current expectations and guidance for the fourth quarter of 2023.
Based on recent order trends in our current backlog, we anticipate fourth quarter total revenue to be in a range of between 19 million and 21 million. At the midpoint of this range, total revenue would represent an increase of approximately 25% over the third quarter, driven by expected sequential growth in both our mobile and home enterprise and markets.
Total revenue at the midpoint would also represent.
Okay, we're gross with revenue being up approximately 18% over the fourth quarter of 2022.
In terms of gross profit margin, consistent with my earlier remarks, we expect to drive incremental gross margin expansion in the fourth quarter and also throughout 2024.
Specific to the fourth quarter, we anticipate non-GAAP gross profit margin to be between 44% and 46%.
We expect operating expenses in the fourth quarter to range between 11.5 million and 12.5 million on an on-gap basis.
Note, this range reflects our expectation to complete the last scheduled milestone related to our co-development agreement before year end, which will be recognized as a credit to R&D expense. Other Ho transitional agreements are in process now. Students join aranb Laback Group, another northwest student on channel W Columbia.
Lastly, we expect fourth quarter non-GAAP EPS to rank.
between cents per share and a loss of three cents per share.
That completes our prepared remarks, and we look forward to taking your questions. Operator, please proceed with the Q&A session. Thank you.
Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Please stand by while we compile the Q&A roster.
Thank you.
Our first question comes from Suji DeSilva with ROC and KAM. Please go ahead. Hi Todd, hi Haley, congratulations on the progress here. I apologize, there was some interference when you were talking about the outlook. Can you just repeat the revenue guide real quick? Sorry about that in the segments. Thanks.
Yeah, well we don't guide by segment, but the revenue tonight is $19 to $21 million.
Okay, I thought I heard something about 18% sequential. I wasn't clear on what that was.
Yeah, I know.
Go ahead.
That was me, and I think that was mobile.
mobile got it okay got it and then the pricing actions that you guys have done in terms of being able to pass through some of the costs where are we in that process in terms of recovering to sort of prior pricing versus some of the to match the cost increases that you've seen through
through the supply constraints.
Well, I mean, it's so good.
Can you be a little more specific, Suze, what are you asking? Well, I'm sure there's a lag here, Todd, in trying to catch up to the cost adjustments in terms of getting pricing back to where, of course, margin would be similar to past levels. I'm just curious how long, I guess, that process will take.
Well, I think as we talked about last call, our goal was to get it by the end of next year.
over the mid-50s.
Okay, by the end of 2024, right? So a steady increase, right? And it's not through just price increases, Suji, it's through a combination.
of rationalizing some pricing, but also introducing new products that have better margin profiles.
And then just maybe the broader your strength and mobile kind of contrast that with the overall demand environment in China. As a China smartphone demand environment returned to normal or you guys kind of running uphill and which you still consider a weaker demand environment there.
Well, I think you've seen other, you know, more broadly.
exposed participants on previous calls talk about that their inventory is finally cleaning up.
and they expect because they're inventory cleaning up that they're going to start to show some.
Some better numbers. I wouldn't call it vigorous growth, but I would, you know, it's gonna get a little bit better.
If you follow the various analysts from Gartner, et cetera,
people have.
The mobile phone industry next year paged it anywhere between a six to 12% year and growth.
We haven't seen it yet, right? If you really look at the numbers that came out for Q3 and the guidance for Q4.
I would say that the markets.
So, specific to PixelWorks...
What we're seeing is I think we are starting to see a broader participation of models that want to incorporate this improved mobile gaming experience. And you should see, like, the phones that we launched.
The three just I just mentioned.
They use last year's, you know, where the beginning of this year is actually flagship ET from both MediaTek and Qualcomm.
Tip
But storage, DRAM and Flash, and I mean ample quite a bit.
reasonably high quality OLED displays, 1.5K, 120 or 144 frames per second displays, and they put reasonable quality cameras, and they sell these...
There's 0.6.5 inch screen phones.
They'll sell them $350 to $450 ASPs.
And so we call this the premium segment. All these customers have flagship models too that they sell at a much higher rate. We are included in some of these flagships as well.
But the premium models seem to be getting a lot more.
from our exposure, I can only talk about our exposure, seem to be getting a lot more traction with the consumer. This could be counter cyclical. This could be given that
The economy is struggling in China and today up to today all of our models have been targeted in China, right?
that will change. We're going to start being included in international models, but...
I have a feeling the consumer in China.
It's what value and you get a lot of value for these models that I'm talking about.
Right?
Whether that continues into next year, we still see reasonably robust demand for us.
both for unit growth.
and ASP growth as we introduce new higher ASP products.
All right. Thanks, Todd. Thanks, Hailey.
Thank you. One moment for our next question.
Our next question comes from Quinn Bolton with Needham. Please go ahead.
Hey guys, this is Nick Doyle on for Quinn Congrats on that progress. Also. I also wasn't able to hear the EPS guide. I heard the Down three cents. I didn't hear the first part
Okay, the EPS guide is, this is non-GAAP EPS, seven cent loss to three cent loss.
Thank you.
So the home in Enterprise was –
seasonally strong in third quarter, but it's unusually up in the fourth quarter, kind of despite this inventory correction you're talking about with the digital projector. Could you just talk about how fourth quarter will be up sequentially?
what's driving that.
I think it's, I'll let Haley comment. I think we don't really forecast.
by sector Johanjo
Wherever you go, that's where I prepared remarks.
Yeah, I did say that it was both mobile and home and enterprise would be up sequentially in the fourth quarter, but most of that is coming from mobile. Home and enterprise is up a little bit, but most of the growth in the fourth quarter compared to third mobile.
Okay, could you talk about yesterday's MediaTek related announcement? I guess this Dementity 9300 is using your VPU and software. Is that kind of incremental to the software contributions we're used to seeing in term gross margins?
So understand when we sell our visual processor, we also include software. There are a few customers we sell software only to. That is becoming a smaller percentage of the total phones we ship into.
But when we collaborate with
both.
MediaTek and Qualcomm, we make sure that all of our software works as an independent software vendor on their platform.
so that when we engage with customers, the solution is effectively ready to go.
Bye.
Okay, so that it read like this was a software specific win.
Is that accurate? That's accurate, but like I said,
Most of that is software that it gets our GPU when we get to Xymones with our GPU.
And if I could ask another just a high-level question, could you just again discuss your gaming strategy? Is the IRX gaming platform expected to drive gaming platform related revenues via partnership, or is it kind of meant to broaden PixelWorks and X5, X7 reach kind of using popular games to drive hardware adoption?
So today, I can't speak about too far into the future, but for today and into next year, it is purely meant…
to provide differentiation, traction, and demand for our visual processors.
the more ecosystem partners.
Top 10 games.
that optimize their game to take advantage of features on our visual processor.
Yeah.
improve the immersive experience while maintaining very low power consumption, system power consumption.
the more the OEMs prefer to adopt it.
So it's reinforcing.
It is not by itself meant to be an independent revenue generator.
Okay, that makes a lot of sense. If I can sneak one more in there, margins keep improving and a big chunk of that was through passing on the costs. Do you expect to pass on additional costs next quarter?
So when we do that, usually our customers are booking orders out.
la
18 and 26 weeks lead time.
So when we start to roll out either new devices
or new pricing on a
It usually doesn't take effect for a period of time. There's a lag effect, right? Because it doesn't affect the current pack log.
So, we have rolled out pricing.
for an extended period of time. As it gets traction with new orders, margins will approve from that pricing. Also, we have a roadmap of new devices.
As we introduce and production increases on those new devices, the margin profile on those devices is better than past devices.
So a combination of the two things are what provides us margin improvement. We do expect to see a gradual improvement over the next several quarters.
Thanks guys.
Yep.
Thanks, Nick.
Thank you. One moment for our next question.
Our next question comes from Richard Shannon with Craig Hallam. Please go ahead.
Hi Todd and Haley, thanks for taking my questions.
I think I'll start with the first question similar to what the other two asked, which is, Haley, your prepared remarks are very garbled. I didn't catch your gross margins numbers either, so could you repeat those for me, please?
Okay, yeah, sorry about that. So guidance for the fourth quarter for gross margin is 44% to 46%.
Okay, and OpEx guidance for the fourth quarter is 11.
million on a non-GAAP basis. And then I just have pointed out that we do expect to
have the final milestone achieved in our co-development agreement so there'll be a credit recognized in Q4, which is why it's down from Q3.
Okay. I apologize, Haley, but it was garbled again. Did you say 11 1-2 to 12 1-2 optics?
Yes.
Wow, I'm sorry. That one wasn't garbled, so no problem. Let's see here. Going off the topic of financial structure here, I think for the first time in a while, we can start talking about and thinking about a break-even model for you guys. So I wanted to get your best sense of what that looks like. You talked about gross margins last quarter, getting into the 50s. Maybe give us a sense of where that kind of baseline for OpEx goes, and then how do we get to a break-even level here.
I'll take it, Hayley.
You know
So.
We are keeping tight on Op-Ed.
We are trying to do a lot with a little. If you look at what our game plan is, and I haven't been.
Super detailed and probably nor will I in the short term. On TrueCut, it is an ambitious plan. And it's an ambitious plan with a lot of people in the audience.
a very small core team. It is making headway.
and
I would suggest the same thing in most.
Our plan with the Iraq ecosystem and we expect
within a year from now to have upwards of 20 top tier games.
in the mobile gaming community.
fully to our SDK, our family of processors including, we just introduced X7 Gen2, there will be another
flagship
VPU launched in the former quarter of next year. We will be sampling customers probably in Q2 of next year.
And so when we go out and suggest that we want to...
ramp up upwards of 20 top-tier games and have that SDK work.
across the processor. So that would be, there will be X7, X7 Gen2, this new device, and our older X5 Pro, which you will see the X5 Pro launched in some newer...
interesting models that are probably targeting a different demographic.
in the next year. So what I'm trying to articulate is it's an ambitious plan with a small team. So in both categories
And we are trying to hold tight on OpEx through that because we would like to get to break-even in profitability sooner than later.
So, a lot of variables.
Do I feel the opportunity is too great and we start spending more off X?
Do I hold the line? Okay?
Are we able to get back to the mid?
50s
sooner.
then target.
or later.
And does revenue grow?
with all that in play.
I would suggest as we approach $25-26 million in revenue with all in the mix, we should be close to break even.
Okay, great. That was very helpful, Todd. Thanks for that. Okay.
I guess touching on a few different topics within mobile here that really revolve around margins and pricing here. I think you've talked about increased pricing over the last...
few years and few generations of product with higher levels of features here. You seem to be alluding to that angle continuing, but it also seems like what you're alluding to is somehow improved cost structures or at least increased value, I guess. So how do we see the progress of ASPs and then when you can quantify or characterize how you expect that to go over the next year or more, Todd?
Well, I can give you historical. Haley may have it on the tip of her tongue. I can give you a rough estimate. My guess is...
In general, if I go back over a three year period and I, you know, with the guidance we gave for Q4 2023, so this would be 21, 22, and 23.
We probably...
If I look, if I add soft iris.
and
a combination of all of our
Visual processors. We were probably in the mid one, 2021, ASPs across all platforms, and we probably shipped 10 to,
12 million models.
And a good chunk of them were software, not the majority, but a good chunk.
In 2022,
we probably shipped a couple million more.
probably flat on the software model, so we grew hardware models.
and we grew the hardware models on higher ASP devices. So we probably averaged low $2 ASP.
All right.
I mean we did – you know what we did. We did 22 million and...
So if we did 12 million units, it's probably about $2, which is a little over.
And
We just finished off the year, once we close Q4 and we meet the guidance we gave.
We'll finish off the year, I don't know, 30 million for mobile, somewhere around this range.
Slightly more units, but probably pushing up to $2 in the AST across all software and then all visual processors.
I would expect that 2024 you would continue to see at least that kind of growth in ASPs.
and here it goes. Probably more than here it goes.
Great, that was a great perspective Todd. Maybe one or two more questions I'll jump by the line here. I think you talked about this last conference call as well, but some of your two ones in China are now starting to do, she phones, poor and intentional markets using your products. How big of an adder do you expect that to be versus more attached more models coming from them in their domestic markets?
Well, if you look at almost every model we've launched, there's an international version of it.
... that almost everyone, not everyone, but... And what they'd often take our chip off the international version.
And it's not just the saving the money of our chip and the national immersion. Their challenge is mobile gaming is a very big deal in China. They understand how to market to that audience in China.
They have struggled because when we say...
We can announce it's multiple countries.
Right?
And so they've struggled with how do they go out and put a cohesive marketing plan for mobile gaming. They know they should. They know the demand is there.
They've been challenged to how to do it. And if they put it down on the PCB and market it, they have to figure out how to market. It's not just the feature, but really, the whole mobile gaming value proposition.
And so this is what we're trying to convince them to go do. I would say I've looked at – I've asked…
Almost every customer that has an international version.
There are some ODMs that ship actually more internationally than they do domestically, but most of our customers ship more domestically than they do internationally.
Thank you.
But you could, I, I, it's a rough guess.
If every model we were in they chose to include us in the international version, our business would dump.
Okay.
That's fair enough. One last question from you, Todd, and I'll jump on the line on TrueCut. I think last quarter you talked about the opportunity or the likelihood of having some important announcements by years, and I didn't hear that language from you on this call. You did mention some impact from the Actors' Strike. Is that the reason why you didn't repeat that or just an afterthought and it's still something you expect, or can you just kind of clarify and verify those past comments are still active in truth currently?
I'm going to be a little impatient. Richard, we are actively engaged in...
some very important dialogues with our TrueCut platform and the technology.
I can't really allude to it any more than that, and I hope something comes out of it. I can't guarantee it will. I feel very confident. I am convinced through all the interactions we've had that it is not...
Now that I would use value absolutely
the value proposition we provide.
for the type of content that we target and then the displays whether they be premium large format theaters or devices that really display content in a more immersive way
It is clear to me from all these discussions that the technology is valued. So I'm at a point now I don't believe it if this technology will be adopted into the hands.
And so I left.
I can't tell you exactly when.
Okay, that's fair enough, and that's certainly understandable. That's all from me, Todd and Hailey. Thank you.
Thank you.
I'm showing no further questions at this time. I'd now like to turn it back to management for closing remarks.
Well, thanks everybody for joining the call. Thanks to our analysts for great questions, and we look forward to continuing to discuss our progress next quarter.
Thank you for your participation in today's conference. This concludes the program. You may now disconnect.
Me.
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