Q3 2023 DarioHealth Corp Earnings Call
Greetings and welcome to the Dariohealth third quarter of 2023 results Conference call all lines had been placed on mute.
Speaker 1: Greetings and welcome to the Dario Health 3rd quarter 2023 results conference call. All lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question and answer session if.
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As a reminder, this conference is being recorded.
Speaker 1: Thank you, it is now my pleasure to introduce your host, Glenn Garment. Please go ahead.
Thank you. It is now my pleasure to introduce your house to Clinton government. Please go ahead.
Speaker 2: Thank you, operator, and good morning, everybody. Thank you for joining us today for a discussion of Garriol Health's third quarter, 2020 three financial results. Leading the call today will be a Res Rafale CEO of Garriol Health. He'll be joined by Rick Anderson, the president. After the prepare marks, we'll open the call for Q&A.
Thank you operator, and good morning, everybody. Thank you for joining us today for a discussion of Dariohealth third quarter of 2023 financial results.
Leading to call today will be Rafael C E O of Dario health he'll be joined by Rick Anderson President.
After the prepared remarks will open to call for Q&A, an audio recording and webcast replay for today's call will also be available online as detailed in the press release invite for this call for the benefit of those who may be listening to the replay or archived webcast. This call is being held on November 2nd 2023.
Speaker 2: And audio recording and webcast replay for today's call will also be available online as detailed in the press release invite for this call. For the benefit of those who may be listening to the replay or archive webcast, this call is being held on November 2nd, 2023. This morning we issued a press release announcing of financial results for the third quarter 2023. A copy of the release can be found on the Investor Relations page of Dario Health's website. Actual events or results may differ materially from those projected as a result of changing market trends, reduced demands, or the competitive nature of Dario Health's industry.
This morning, we issued a press release announcing our financial results for the third quarter of 2023, a copy of the release can be found on the Investor Relations page of Dariohealth website.
<unk> may differ materially from those projected as a result of changing market trends reduce demand.
Competitive nature of Dariohealth industry, such forward looking statements and their implications may involve known and unknown risks uncertainties and other factors that may cause actual results or performance differ materially from those projected.
Speaker 2: such forward-looking statements and their implications may involve known and unknown risks on certain fees and other factors that may cause actual results or performance differ materially from those projected.
Speaker 2: The forward-looking statements discussed on this call are subject to other risks and uncertainties, including those discussed in the risk factor section and elsewhere in the company's third quarter, 2023 quarterly report on form 10Q. Additional information concerning factors that could cause results to differ materially from our forward-looking statements are described in greater detail in the company's press release issue this morning and in the company's other filings with the SEC. In addition, certain non- GAAP financial measures may be discussed during this call. These non- GAAP measures are used by management to make strategic decisions, forecast future results, and evaluate the company's current performance. Management believes the presentation of these non- GAAP financial measures is useful for investors understanding and assessment of the company's ongoing core operations and prospects for the future. A reconciliation of these non- GAAP measures , so the most comfortable GAAP measures , is included in this morning's press release. With that, I'd like to introduce Arrest Raphael, Chief Executive Officer of Garryal Health.
The forward looking statements discussed on this call are subject to other risks and uncertainties, including those discussed in the risk factor section and elsewhere in the company's third quarter of 2023 quarterly report on Form 10-Q.
[noise] information concerning factors that could cause results to differ materially from our forward looking statements are described in greater detail in the company's press release issued this morning, and then the companies other filings with the SEC.
In addition, certain non-GAAP financial measures may be discussed during this call. These non-GAAP measures are used by management to make strategic decisions forecast future results and evaluate the company's current performance management believes the presentation of these non-GAAP financial measures is useful for investors understanding an assessment of the companies.
Core operations and prospects for the future of reconciliation of these non cat venture some of the most comfortable GAAP measures.
Rooted in this morning's press release with that I'd like to introduce arrest Raphael Chief Executive Officer of Dariohealth Perez.
Speaker 3: Thank you, Bland, and thanks to all of you who are joining our call this morning.
Thank you and thanks to all of equal joining alcohol. This morning.
Speaker 3: Q3 financial results are continuation of our multi-year strategy and evolution of our financial profile. We continue to look forward with added conviction in our advancement in the digital health space.
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Health space.
Speaker 3: As we communicated in our recent investor day, our revenue stream can be viewed as 3.4. First is our historic direct to consumer or be the city business.
As we communicated their knowledge.
They they have in your savings can be viewed as three calls.
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Speaker 3: Second is the recurring revenue from health plans and employers or commercial B2B2C.
Secondly, the Italians Avenue from Health plan.
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Speaker 3: And the third revenue stream that we call commercial strategic, which comes from partners like Senofi and is mine from River.
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Which comes from partners like Sanofi.
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Speaker 3: In the first quarter, I'll be the seed business continued base to achieve the expected 8 to 9 million in yield as every new, while remaining cash natural or slightly positive. We expect this trend to continue into 2024.
And the first quoted I'll be the same business continued base to achieve the expected eight to 9 million.
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Or slightly positive.
Trying to continuing to 2024.
Speaker 3: On the commercial strategic side, commercial strategic revenue remains on track for any on run rate of approximately $6.3 million a year. The current quarter resulted only with $200,000 recorded and revenues which negatively affect revenue compared to the previous quarter and the third quarter of 2022.
On the commercial strategic side.
Commercial strategic Avenue remain on track.
Okay boxing lately $6.3 million.
All of the year.
The current quarter resulted only with $200000.
11 years.
Negatively effect.
Revenue compared to the previous quarter and the third quarter of 2022.
Speaker 3: We want to reiterate that death partnership revenues should be viewed on a yearly basis and not a quarterly basis.
We want to lead the desk 506 revenues should be.
On a yearly basis and not quarterly basis.
Speaker 3: and the economic value for us on the yearly base has not changed. We expect our commercial strategic revenue to continue at an annual rate of $68 million a year.
And the economic value for us.
Usually base has not changed.
<unk> commercial strategic revenue to continue it.
Right of $6 million to $8 million a year.
Speaker 3: The fundamentals of our core, B2B2C commercial and our business that comes from the current revenue, from the products and health plan, continue to grow.
The fundamental so called beta beta C commercial.
That comes from my colleague that I venue for me.
And health plan continued to go out in.
Speaker 3: In the first quarter, the revenue from this channel grew by 22.7% compared to the first quarter of 2022 and up 57% for the nine months ended compared to the same period in 2022.
In the first quarter does that venue obese Johnny go by 22.7% compared to the first quarter of 2022 and 50.
57% for the nine months and then compared to the same period in 2022.
Speaker 3: and totaled $3.9 million in 2023 compared to $2.5 million in 2022. Our current total signed contract estimated value is over $60 million a year, which will be recognized as ARR in the B2B2C channel as we continue to penetrate member populations.
In 2000, and $3.9 million and 2023 compared to $2.5 million and 2022.
Colin Firth, a signed contract estimated value is over $60 million, a year, which will be recognized.
And debated me to see China, as we continued to penetrate the populations.
Speaker 3: We believe that our annual revenue growth target on 100 to 170 percent in the BNB, the C-Bizmer challenge can be achieved and expected to see faster revenue wrap up when we enter into 2024. To reach this target, we use metrics surrounding historical and urban traits and other data from members and clients we have.
We believe that all hanging out 11, you both sound great on.
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And debated <unk> Charlotte can be achieved and expect to proceed faster.
When we enter into 2024.
So is this target we use netflix surrounding he stole it got enormous.
And other data for members and clients.
Speaker 3: This cleverly extreme shows an adjusted growth margins about 70%, which will continue to drive overworld growth margins higher as the B2B2C business. Charness becomes a larger percentage of power.
These cleanliness thing shows and adjusted gross Smile, just about 70%, which will continue to drive overall gross margin higher.
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Speaker 3: Looking forward, the growth of this B2B2C ARR China should accelerate because of the following three building blocks. First, implementing signed contracts. We estimate that we have a $60 million in ARR in contract value. Second, is the land that will expand the port and opportunity to expand existing clients, either by adding new chronic conditions or expanding to additional population.
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China should accelerated because of the following green building blocks first implementing.
Implementing sign contracts, we estimate that we had a $60 million now.
And contrary value set.
Okay.
Expand the coach.
To to expand existing client either by adding a new chronic condition all expanding so additional population.
Speaker 4: The third is our partnership strategy to give us potential access for 87 million members and securing just 1% of this population is about $17 million in A&M. So that's a very large potential.
The third is our partnership strategies and gives us potential access all 87 million members.
Thank you and just 1% of the population is about $17 million.
So that's a very loud.
Speaker 3: I would like to touch base on our strategic relationship and I'll tell you something.
I would like to talk to you based on our.
Strategic relationships and about this or not.
Speaker 3: We continue to see significant financial and people resources dedicated to Dario Paisanovi in marketing the solution in conducting the recent clinical study.
We continue to see significant financial and people and resources dedicated to Daniel by Sanofi in marketing the solution.
Ducting the recent clinical study.
Speaker 3: The results from three real-world clinical studies done by Sanofi and third-party hired by Sanofi were published this year.
The results from three illegal or clinical studies done by so nasty and third party hired by Sanofi will publish this year.
Speaker 3: The study showed impressive results on the clinical side. Hemoglobin A1c improved between 1 to 2.3 points, and also from a cost perspective, with an average annual savings of more than $5,000 per member per year for users that are operating on the Dario platform. This is an impressive result and useful matrix to deliver to payers and partners.
The study showed impressively on the clinical sites.
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Between one to $2 three points and.
And also from the cost effective with an average annual savings of more than 5000 dollar per member.
Member for Ya.
But the operating on the platform.
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Speaker 4: On Aetna, the highly anticipated launch of the value-powered behavioral health platform is on track to January 2024. And we have insights into five employers that will enroll to the platform starting January 2024. We also expanded our relationship with Aetna, and Rick will provide more details about it in a few minutes.
Well that's nice.
The highly anticipated launch of the value of power forget about health platform is on track. So January 2024.
And we have insights into five employers that will in all to the platform started in January 2024.
Also expanded our relationship was that will.
Will provide more details about it in a few minutes.
Speaker 3: We believe that the partnership is only getting stronger and the size of the opportunity is getting larger than what we originally anticipated.
We believe that the partnership is only getting stronger and the size of the opportunity is getting larger than what we originally anticipated.
Speaker 3: Another large opportunity for us is the GLP-1 revolution.
And other allowed the opportunity for US is the jail, if you wanted to evolution.
Speaker 4: We are happy to say that through the development we made with Sanofi, we launched a product offering to define the Dario platform as a solution for users on GLP-1 and other weight-loss drugs. According to published FDA statements, the drug needs to be supported by proper behavioral change. This includes onboarding and offboarding the drug, as well as managing nutrition and exercise while taking it. This is exactly the type of behavioral management that our solution addressed.
We are happy to say that who the development. We made we cannot say we launched the boat adult feeling to define the download platform is a solution for users on <unk> and other ways of strikes. According to published FBA statements to drive it needs to be supported by <unk>. This includes on boarding and <unk>.
The drug as well as managing nutrition and exercise while taking it this.
This is exactly that that prevailed the advantage magenta solution Nonetheless.
Speaker 3: Our product is already fundamentally a complement to this new market opportunity.
Our product is already fundamentally compliment with this new market opportunity.
Speaker 3: Another potential area that we are exploring within the GLP-1 opportunity is assistance in navigating the allocation of the drug to the right patient.
Another potential area that reality slowly.
But just the one opportunity the system in navigating the allocation of the drive to the right patients.
Speaker 3: Given its price implications to health plans, we see a need for data-driven assistance in making sure that the drug is prescribed to the right people at the right time. Let's take a deep dive into this.
Do you have any psoriasis implications 12th and we.
We see a need for a data driven assistance in making sure that the drug is prescribed to the right people at the right time.
Let's take a deep dive into the rest of the financial need that.
One important matter of fixes the gross margin.
Speaker 3: One important matrix is the GOS margins. We see a performer GOS margins of 48.8% for the third quarter of 2023. The flight decreased from 51.5% of the revenue in the second quarter of 2022. GOS margins in the B2B2C channel have remained consistent at around 70%, which is our budget rate.
C a performer gross margin.
48.8% for the third quarter of 2023 slightly curious from 51.5% of.
The revenue.
In the second quarter of 2022.
Small James and debate a b C channel heavy remains consistent.
70%.
Which is a good place.
Speaker 3: Margins will continue to improve towards 70% level in the longer term as the B2B2C continues to grow.
Lobbyists will continue to pull towards 70 per cent level in Columbia of them is debatable continued to grow.
Speaker 3: looking at the operating expenses and operating loss.
Looking at the operating expenses and operating loss.
Speaker 3: We are seeing an operating leverage of the infrastructure that we have built and the real economic advantage of the multi-condition approach.
We are seeing an opioid I think leather Rachel painful Fletcher.
Economic advantage of the multi condition approach.
Speaker 3: Our operating expenses on the non-gap basis for the nine months ended September 30, 2023 are down to $32.3 million from $39.3 million for the nine months ended September 30, 2022.
Operating expenses on the non-GAAP basis for the nine months us in September 30th 2023 down to $32.3 million from $39.3 million for the nine months ended September 30th 2022.
Speaker 3: We expect an additional 16% reduction in our operating expenses in 2024 as we continue to consolidate, automate and scale.
We expect an addition on a 16% reduction in our open I didn't expenses in 2024.
We continue to consolidate auto maintenance K.
Speaker 3: Operating loss excluding stock-based compensation amortization of acquisition-related expenses and depreciation of the third quarter of 2023 was approximately $9 million compared to $8.4 million for the third quarter of 2022 and $7.5 million in the second quarter of 2023.
But I think excluding stock based compensation amortization of acquisition related expenses depreciation of the third quarter of 2023 for the boxing lately 9 million dollar compared to $8.4 billion for the third quarter of 2022.
$7.5 billion in.
In the second quarter of 2023.
For the nine months ended September.
Speaker 3: 2023, our non-gap operating losses was $23.8 million compared to approximately $30 million for the nine months that ended September 2022. This was due to decrease in operating expenses.
2023.
non-GAAP operating losses was $23.8 million compared to.
Boxing lately $30 million for the nine months and then September 2022, this will do to decrease.
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Speaker 4: We expect to continue the OPEX reduction as well as the net loss reduction as our financial profile continues to take form.
We expect to continue the opex reduction as well as the network production as our financial golf I continue to take home.
We expect our non-GAAP.
Speaker 4: operating expenses to decrease about 10 to 15 percent during 2024 and our non-gap operating loss to decrease between 20 to 30 percent in 2024.
Operating expenses to the case about 10% to 15% during 2024.
And are non-GAAP operating loss suitcase between 20% to 30% of 2024.
Speaker 4: We have a strong cash position of $44 million, which provides an estimated runway during 2025. We believe that we will become cash flow positive at about $80 million in ARR, a goal that we see very reasonable as we continue to improve our financial forefront. With that, I want to hand it over.
We have a strong cash position of 44 million zoloft, which provide estimate the runway during 2025.
That we will become cash flow positive, it's about $80 million.
Thank God that we see about it either.
As we continue to improve our financial.
With that I want to have it over too.
Thanks Harris as areas mentioned in the third quarter R. B C business continued on pace to achieve $89 million in revenue, while remaining breakeven to slightly profitable and we continued to see growth in our core business line recurring revenue from health plans and self insured employers and the third.
Speaker 2: As Eric mentioned, in the third quarter, our B2C business continued on pace to achieve $8 to $9 million in revenue, while remaining break-even to slightly profitable.
Speaker 2: And we continue to see growth in our core business line, recurring revenue from health plans and self-insured employers in the third quarter.
Quarter.
Speaker 2: Our strategic revenue was lower in the third quarter than in the third quarter of 2022 and lower than we had originally anticipated for the quarter. The majority of this was due to the timing of the milestones delivered as a result of Sanofi internal changes.
Strategic revenue was lower in the third quarter and the third quarter of 2022 and lower than we had originally anticipated for the quarter. The majority of this was due to the timing of the milestones delivered as a result of sanity internal changes. These internal changes do not impact the annual revenue or the overall relationship with <unk>.
Speaker 2: These internal changes do not impact the annual revenue or the overall relationship with Sanofi, as Erez mentioned.
As <unk> mentioned.
Speaker 2: As we discussed last quarter, our Aetna Behavioral Health Platform has moved to their commercial division and we are pleased to report that they are on track to have members on platform with identified customers starting in January of 2024.
Have you discussed last quarter or Aetna behavioral health platform has moved to their commercial division and we are pleased to report that they are on track to have members on platform with identified customers. Starting in January of 2024. As a reminder, we earn revenue from this platform on a per employee per month basis for all employees, who have access to the plan.
Speaker 2: As a reminder, we earn revenue from this platform on a per employee per month basis for all employees who have access to the platform, which means revenue will commence in January . We expect that the population on the platform will continue to grow over several quarters post-launch as Aetna continues to sell the platform through to their self-insured employer customers.
One which means revenue will commence in January we expect that the population on the platform will continue to grow over several quarters supposed launch that continues to sell the platform through to their self insured employer customers.
Speaker 2: I'm also pleased to report that we had a significant win with Aetna in the third quarter as we were selected to replace one of their existing vendors in providing digital cognitive behavioral therapy. This represents a separate win and additional revenue that will commence during the first quarter of 2024.
So pleased to report that we had a significant win with that and then the third quarter. As we were selected to replace one of their existing vendors in providing digital cognitive behavioral therapy. This represents a separate when an additional revenue that will commence during the first quarter of 2024. In addition to the significant revenue this will add starting.
Speaker 2: In addition to the significant ARR revenue this will add starting in the first quarter of next year, we also believe this demonstrates the strength of our relationship with Aetna and fuels our belief that we will continue to have opportunities to expand this relationship.
In the first quarter of next year. We also believe this demonstrates the strength of our relationship with that and and fuels. Our belief that we will continue to have opportunities to expand this relationship.
Speaker 2: We have continued to see growth from both MEDD-1 and the large regional blues plan that we recently launched. And as previously discussed, we expect to see a growth of members from these two accounts throughout the remainder of 2023 and more substantially into 2024. In addition, in the third quarter, we expanded the conditions for the regional blues plan from hypertension to also now include diabetes, which we expect to launch in the first quarter of 2024.
We have continued to see growth from both med, one and a large regional blues plan that we recently launched and as previously discussed we expect to see a growth of members from these two accounts throughout the remainder of 2023 and more substantially into 2024. In addition in the third quarter, we expanded the conditions for the reach.
No Booze plan from hypertension to also now include diabetes, which we expect to launch in the first quarter of 2024.
Speaker 2: The launch of diabetes, combined with the increased promotion of the program in Q4 and 2024 by the health plan and our partner, Solera, are expected to result in significant growth in this account with approximately 3 million members.
The launch of diabetes combined with the increase promotion of the program in Q4 and 2024 by the health plan and our partner Solera are expected to result in significant growth in this account with approximately 3 million members.
Speaker 2: In addition, MedOne has now made Dario offering part of their standard product for new customers launching in 2024. This should further accelerate the penetration of this account.
In addition, med one has now may daria offering part of their standard product for new customers launching in 2024. This should further accelerate the penetration of this account.
Speaker 2: Combined, these customers will ramp over the next several quarters adding to our AR growth through 2023 and accelerating into 2024.
Buying these customers will ramp over the next several quarters, adding Tory <unk> through 2023, and accelerating and just 2024, we continue to deliver for our customers and our recent customer satisfaction study 96 per cent of our customers were satisfied or very satisfied. This has translated to a steady increase in.
Speaker 2: We continue to deliver for our customers. In a recent customer satisfaction study, 96% of our customers were satisfied or very satisfied. This has translated to a steady increase in reference customers, which are important for accelerating growth.
Reference customers, which are important for accelerating growth. In addition, several of our existing customers are in the process of expanding including two of our health plans either in terms of the size of the population with access to the <unk> or the lines of business.
Speaker 2: In addition, several of our existing customers are in the process of expanding, including two of our health plans, either in terms of the size of the population with access to Dario or the lines of business.
Speaker 2: The majority of these expansions will commence in the first quarter of 2024 with the rest expected in the second quarter of 2024.
Majority of these expansions will commence in the first quarter of 2024 with the rest expected in the second quarter of 2024 and.
Speaker 2: In the third quarter, we saw a slowdown in self-insured employer decision-making due mostly to macroeconomic conditions, resulting in several opportunities shifting to next year. In spite of this, we are pleased to be adding at least 15 self-insured employers and health plans to the platform in the first quarter of 2024, which we anticipate will result in a significant increase in ARR in the first quarter.
In the third quarter, we saw a slowdown in self insured employer decision, making due mostly to macroeconomic conditions, resulting in several opportunity shifting to next year. In spite of this we're pleased to be adding at least 15 self insured employers and health plans the platform in the first quarter of 2024, which we anticipate will result in that city.
Increase in they are in the first quarter.
Speaker 2: And these additions do not include several health plans and employers that we anticipate adding in 2024 through our partnerships, including at least one national health plan. We haven't seen a strong pipeline and activity through our partnerships, which enabled the easy button contracting, integrating and implementation for customers. Partnerships will continue to be a significant part of our go to market strategy.
And these additions do not include several health plans and employers that we anticipate adding in 2024 through our partnerships, including at least one national Health plan, we haven't seen a strong pipeline and activity to our partnerships, which enabled that easy button contracting integrating in the implementation for customers partnerships with.
Continue to be a significant part of our go to market strategy.
Speaker 2: In summary, we will continue to see growth of the key B2B health plan and self-insured employer business in the fourth quarter and substantial growth in our core business in 2024.
In summary, we will continue to see growth of the key be to be health plan and self insured employer business in the fourth quarter and substantial growth in our core business. In 2024, we have created a growing base of B B C health plan and self insured employer revenue that will carry into 2024 with strong retention med one and.
Speaker 2: We have created a growing base of need-to-be to see health plan and self-insured employer revenue that will carry into 2024 with strong retention.
Speaker 2: MedOne and the large regional blues plan will continue to increase revenue in 2024 as we continue to bring those customers numbers on the platform. Importantly, our partners are increasing the promotion of these programs to their members and the case of MedOne making Dario part of their standard offering rather than an opt-in.
The large regional Blues plan will continue to increase revenue in 2024, as we continue to bring those customers numbers on the platform importantly, our partners are increasing the promotion leesburg transferred their numbers in the case of Ned winemaking Diarrhoeal part of their standard offering rather than an opt in.
Speaker 2: Several of our customers are expanding, including multiple health plan customers, by adding additional populations, conditions or aligned to business, which will be contributing to revenue in the 1st and 2nd quarters of 2024. we anticipate adding at least 15 additional employer and health plan customers on the platform in the 1st quarter of 2024.
Several of our customers are expanding including multiple health plan customers by adding additional populations conditions or lines of business, which will be contributing to revenue in the first and second quarters of 2024.
Anticipate adding at least 15 additional employer and helping customers on the platform in the first quarter of 2024.
Speaker 2: The Aetna platform will launch in the first quarter of 2024 with several identified customers, and our newly expanded business with Aetna, which builds on a per-employee, per-month basis, will launch in the first quarter of 2024 as well. We have established several quality partnerships, and those partners are starting to generate scenario customers from growing pipelines that we anticipate will contribute significantly to revenue in 2024, including one to two national health plans. With that, I would like to turn it back over to Eric. Thank you.
The platform will launch in the first quarter 23, 24, with several identified customers and our newly expanded business with that now which builds on it per employee per month basis will launch in the first quarter of 2024 as well we.
We have established several quality partnerships and those partners are starting to generate Oreo customers from growing pipelines that we anticipate will contribute significantly to revenue in 2024, including one to two national health plan with that I would like to turn it back over to Earth.
Thanks for a week.
Speaker 4: As we look back to the strategic changes we have made to the company in the last few years,
Cause we look back to the strategic changes with the company and the last few years.
Speaker 4: such as moving from single to multi-chronic conditions and from direct to consumer to B2B to C.
Such as moving from savings into monetary chronic conditions and from direct to consumer B B C.
Speaker 4: We see how massively impactful they were to our goals and advancement of our business across the China.
We'll see how massively input.
So our growth and our best.
Mental file business across the chairman.
Speaker 4: As we explained in our address today a couple of weeks ago, our platform is best in class with clinical proof of efficacy that has been validated by G-World data as well as our partners.
A lot of perspective is way explains the amount invested a couple of weeks ago.
Blackstone is best in class is cleaning cycle of the secrecy.
That has been invalidated illegal data as well as our problems.
Speaker 3: Our core business is functioning very well and the financial profile of the company is continuing to improve.
Call business is functioning very way and.
And the financial bubble of the company is contained in to it.
Speaker 4: We are very happy with the development of the top partners like Aetna and Sanofi and continue to see them and progress to be stronger.
We are very happy with the development of it.
Thousands like Edmondson opening and continue to see them.
In August at least function.
Speaker 4: We remain dedicated to keeping the investing public educated on the progress of the business across the multiple challenges we have defined. To recap here, commercial strategic revenue could be measured on an annual basis as it is milestone driven. We expect to see this stain in line with a estimation of six to eight million dollar a year.
We remain dedicated to keeping the investing public educated on the progress of the business the cost of the multiple challenges we have defined.
To wake up here.
Commercials strategic revenue could be met.
Mhm.
On an annual basis as it is in my Sunday, then expect to see.
This staying in line was an estimation of $6000 a year.
Speaker 4: B2B2C employers and helpline is recurring and should grow as we continue to implement our signed accounts. We expect to see this revenue channel grow between 100 to 170% annually. On the B2C side,
The employers and health plan is recounting and should grow as we continue to implement assigned accounts. They expect to see this channel go between 170 per cent annually.
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Speaker 4: We are going to be stable on breakeven cash flow or cash flow positive with $8 to $9 million per year.
We are going to be stable on breakeven cash flow orchestral positive with $8 million to $9 million per year.
Speaker 3: In 2024, we expect to see OPEX reduced by an additional 10-15% non-GAP.
In 2024, we expect to see Opex produced.
<unk>, 10% to 15% non-GAAP.
Speaker 4: and net loss reduced by an additional 20-30% non-gap.
That was reduced by additional 20% to 30% <unk>.
Speaker 4: All this proves as evidence of continued improvement of our financial profile on a consistent going forward basis.
Only suppose as evidence of continued improvement will follow the natural for five on a consistent going forward basis.
Speaker 4: Thanks everyone, and I would like to open it now for Q&A.
Thanks to everyone and I would like to open a whole journey.
Speaker 1: Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star followed by one on your touch tone phone. You will hear a three-tone prompt acknowledging your request and your questions will be pulled in the order of the air. And you will hear a three-tone prompt acknowledging your request and your questions will be pulled in the order of the air.
Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by one on your Touchtone phone you will hear a three tone prompt acknowledging your request and your questions will be pulled in the order. They are received should you wish to decline from the polling process. Please press star followed by two if you are.
Speaker 1: Should you wish to decline from the polling process, please press star followed by two.
Speaker 1: If you are using a speakerphone, please lift the handset before pressing any keys. One moment please.
Using a speaker phone please lift the handset before pressing any keys one moment. Please for your first question.
Speaker 1: Your first question comes from Charles Re, TD Cowan. Charles, please go ahead.
Your first question comes from Charles re T D. Cowan Charles Please go ahead.
Speaker 5: Yeah, thanks for taking the questions. Eras and Rick, maybe just give a sense on sort of how the strategic partnerships are going. And obviously we didn't get as much contribution this quarter. Maybe a little bit more about the scientific relationship and how that's progressing.
Yeah. Thanks for taking the questions Uhm R as in a wreck.
Maybe just give us a sense on sort of how the strategic partnerships are going and you know obviously, we we we didn't get as much contribution this quarter, maybe a little bit more about setting up your relationship and how that's progressing.
Speaker 5: And then secondly, you know, get invited this and sort of the pace that we're expecting with at the next year and sort of your expectations on some of the new customers that could come on board. How should we be thinking about next year's revenue?
And then secondly, you know get in light edition and sort of the page that we're expecting with at and then next year and sort of your expectations on some.
Some of the new customers that could come on board, how should we be thinking about next year's revenues.
Speaker 3: I start with Sanofi and Rick and talk about Etna and I also can talk about Etna.
Let's start with snow fan.
We can talk about at night and I also can talk about business.
Speaker 3: When we think about the relationship with Sanofi, I mean, we had.
When we think about the relationship with <unk> I mean, we had.
Speaker 3: We are looking into few types of revenues. We have development services. We have elements that related to clinical publication and data. And one of the things that we were showing and reiterating in our investor day is all the achievements that we had in the last year with this kind of relationships. We had three different clinical publications.
We are looking into two types of revenues, we have development services, we have elements related to clinical application and data and one of the things that we were showing and read the writing and <unk>.
Is all the achievements that we had in the last year with this kind of relationships, we had three different clinical applications.
Speaker 3: And that were done on top of our real-world data that we collected over the year. And we had like one of the top clinical guys from Sanofi on the stage talking about.
That was done on purpose volleyball data that we collected over the years and we had like a.
The top clinical guys from Sanofi understates talking about it.
Speaker 3: That's a long way to say that the relationship are very good, we are making progress.
That's a long way to say that the relationship Oh, very good well, making progress in terms of.
Speaker 3: in terms of achieving objectives from the clinical aspects to the development services aspect, just to remind you we develop together.
The tubing objectives from the clinical aspects with the development services aspect just to remind you we develop together.
Speaker 3: The overall change capabilities that related to the GLP1, which is also something that was done together with Sanoffi, so on the development side we are also doing well. And also on the commercial side, we are working together to get clients, and actually made one is one of the clients that we work together with Sanoffi in order to achieve, and we think that we're going to get another few clients, including health plans that is coming from the relationship with Sanoffi.
And behavioral change capabilities that related to the G. L. P. One which is also something that was done together with this an office on the development side. We're also doing well and also on the commercial side. We are working together to get clients and actually made one is one of the clients that.
We work together, we sent off in order to achieve and we think that we're gonna get another few clients, including health plans that is coming from the relationship we sent off for Ya. So looking back we signed the lease agreement on March 1st last you looking back on all three streams, the clinical development services and the commercial.
Speaker 3: So looking back, we signed on this agreement on March 1st last year, looking back on all three streams, the clinical development services and the commercial, there is a satisfaction from both sides.
And there is a satisfaction on both sides.
Speaker 3: I think that the challenging part is the way that we anticipate
I think that the the the challenging policies.
The way that we anticipate how this 30 million dollar Bill is recognized and believe it because it's very milestone base and it's very hard for us to communicate with the market when we're going to recognize what part of the revenue in this thing. This is what created the challenge and one of the things that I was trying to be very very.
Speaker 3: this $30 million deal is recognized and delivered because it's very milestone based. And it's very hard for us to communicate with the market when we're going to recognize what part of the revenue and I think this is what created the challenge. And one of the things that I was trying to be very, very clear on the script, on the part of the brand is we're doing a work of trust with the market including the Federal Farm
Clear.
On the on the script on the Anna Nicole It says.
Speaker 3: is that the relationship are moving to the right direction and we believe we can also take it to the next level beyond the 30 million dollar. This is something that we said before and we think that the relationship are stronger than ever. I really wanna say something about the etna in the long.
Is that the relationship are moving through the either direction and then we believe.
We can also take you to the next level beyond the $30 million. This is something that besides before and we're seeing that the the relationship.
<unk> then the ever Vicky wanted to say something about the at nine the launch.
Speaker 2: Sure. So I mean, I think, you know, our relationship with that continues to be very strong. They are, as we mentioned, they have now identified customers that on the platform, the mine companion platform, which is the private-level version, they're selling through their customers. And they've brought us more and more to be involved in the commercialization effort of that. So that continues to deepen. Plus, as I mentioned, you know, we want another piece of business, which was actually taken.
Sure. So I mean I think.
Our relationship with it and it continues to be very strong they are.
As we mentioned they have now identified customers that on the platform the mind Canadian platform, which is the private label version, they're selling to their customers and they've brought us more and more to be involved in the commercialization effort of that so that continues to deepen pluses I mentioned here, we want another piece of business.
Which was actually taken from.
Speaker 2: from Teladoc and that's going to launch in January . So, you know, our understanding from them is they're looking to continue to consolidate vendors and we've benefited from that. I think that that, you know, speaks to the relationship. I think there will be other opportunities over the next 12 months within also to be able to expand that. So, you know, I think the relationship is strong. It's showing up in terms of the business that that we're in.
From Teladoc and that's gonna launch in January so our understanding from them as they are looking to continue to consolidate vendors and we've benefited from that I think that that speaks to the relationship I think there will be other opportunities.
Over the next 12 months with them also to be able to expand that so you know I I think the relationship is strong it's showing up in in terms of the business that they were increasingly.
Speaker 3: And in terms of the revenue child, I want to make sure that I'm addressing that part of the question and how you should look into revenues that were next year in the year after.
And in terms of the revenue Charles So I want to make sure that in the best thing that out of the question and how you should look into Avenue is that for next year and the Oscar.
Speaker 3: We think that the BDCR strategy is to keep it because it generates the data that we need and it helps us to create the sandbox in order to improve the platform.
We think that the beta see our strategies to keep it because because of January I debated. It we need a need helps us too.
The sandbox in order to improve the platform and this one way of keeping on the cash flow.
Speaker 3: and this one we are keeping on cash flow
Speaker 3: a neutral or a bit positive or slightly positive and this is a is in the ranges of eight to nine million dollar a year. The other part which is the strategic and we recognize this year some strategic that is coming from Etna and also Sennoffi so these are the two revenues that we had under the strategic.
New tarallo admit positive or slightly positive and this is is in the range of $8 million to $9 million a year.
The Idaho-falls, which is the strategic and we recognized this you some strategic did this coming from Edna and also center. So these are the two revenues that we had under the strategic and next you. We think of it we have a range of somewhere between $6 million to $8 million for that out.
Speaker 3: And next year we think that we have a range of somewhere between 6 to 8 million dollars for that part.
Speaker 3: can be even more, Sennofi is kind of guaranteed to some extent and it just depends on how it's going to be recognized between the quarters.
Even more <unk> is is guaranteed to some extent and it just depends on how it is going to be like organized between the quarters.
Speaker 3: So that's another part. We also work on other relationships that related to farmer and companies that related to clinical and data. And we believe that we're going to have more clients contributing to this revenue channel, what we are calling commercial strategic.
So that's another path, we also walk when other relationships that related to farmer and companies that related to clinical and data and we believe that we're going to have more clients contributing for this revenue China, what we are calling commercials strategic.
Speaker 3: And the third part, which is the most important part, which is the BDB, the CERR, all the membership that is coming from employers and health plans. Here we are looking into growth that is somewhere between 100 to 170% growth.
And the first part which is the most important part which is the needed me to see.
All the membership that is coming for employers and health plans here. We are looking into growth that is somewhere between hundred London 70 per cent growth.
Speaker 3: This is very hard to predict, but the more we are implementing, it becomes more predictable. And we are aware to the challenge that investors have and analysts have in anticipating how the ramp is gonna look like on a quarterly base. And that's a challenge that we are trying to address.
This is very hard to predict but the more we are implementing.
It would become small web <unk> and we are aware to the challenge that that invest.
Investors have an analyst have in anticipating how <unk> is gonna look like on a quarterly base and that that's a challenge that will trying to address and also without partners. So we sent off in we'll try to get it as as steady as possible but.
Speaker 3: Also without partners with Sanofi and we'll try to get it as steady as possible but that
Speaker 3: The business is a bit complicated, but it's ramping up. So we are confident that we are in the right path to create a goal that is most significant as we move forward.
The business is a is a bit complicated, but it's ramping up. So we are confident that we are in the right path to create a golf with his most significant as we move forward.
Speaker 5: And sorry, just to clarify though. So if we look at the services revenue, which is assuming mostly is all the B2B to see, and we know we don't have really any strategic sanity-related revenue in it.
Sorry, just a quick clarify, though so if we look at the services revenue, which is I'm, assuming mostly as all the B B C and and we know we don't have really any strategic like centipede related revenue in it.
Speaker 5: If we look at sort of if we kind of annualize that number is that the number we should be growing the hundred the I think he said hundred seventy percent as we think about next year. And then obviously we have a steady state in terms of consumer.
If we look at sort of if we kind of annualize that number is is that the number we should be drawing the hundred I think he's 170 per cent as we think about next year and then obviously, we have a steady state in terms of consumer on the beta C. And then obviously some contribution from strategics.
Speaker 5: on the B2C and then obviously some contribution from
Speaker 3: No, no, not exactly. I said that on the bid is saying the bid is it between eight to nine million dollar, which is the cash girl positive. That's number one number two, the strategic. I provided the range of six to eight million dollar more.
No no not exactly I say that in the Buddhist okay.
It's between eight to 9 million dollar, which is the case positive.
Okay. That's number one number two the strategic I provided a range of six to 8 million dollar right <unk>.
Speaker 3: And that's a range that is the strategic this year we had strategic the caltaming from both Sanofi and Etna and And this is something that was Total including Q3 it was a 6.5 million dollar for this year and we have another quarter
Next arrange that is the strategic this year, we had strategic <unk> coming from both so no fan Aetna and and this is something you know it was the hotel included in Q3, if it was $6.5 million for this year, we have another quota so.
Speaker 3: So, so far here today it was 6.5 but looking into next year we are still looking into a range of between 6 to 8 million dollar or more.
So all you needed today it was six five but looking into next year will still looking into a range of between $6 million to $8 million or more.
Speaker 3: And now the last one, the ARR, that at the moment is in the run rate of 5 to 5.5 million dollars, this one should go between 100 to 160%.
Now the last one the error and I think at the moment is you know I might of.
$525.5 million. This one should go between hundred London 60 per cent, which is that that's the core business. That's the members here.
Speaker 3: which is the, that's the co business, that's the membership, that's the allow that is forming some employers and health plans. We are counting under this market.
But this morning, so employers and health plans, we are counting under this bucket Vietnam on the membership what we are going to launch in Germany, but there's not a delighted to building the platform investing into the platform in a way that it can be integrated with the rest of new platform. We will considering the serving you as a strategic could avenue.
Speaker 3: The ethna and the membership, what we are going to launch in January .
Speaker 3: But Edna that related to building the platform, investing into the platform in a way that it can be integrated with the rest of the platform, we were considering this revenue as a strategic revenue because we did specific automizations for them. And we got somewhere around $3.5 million or so far. But next year, once we are getting the platform to production, and we're going to generate...
Because we didn't specific customizations for them and we go somewhere around $3.5 million, a sofa and but next year. Once we are getting the platinum to production and we're gonna generate.
Speaker 3: Remember per month on the monthly base this one will be considered under the B2B2CARR which is the portion that is going 170% over here
I remember for months on a monthly basis. This one will be considered <unk>, which is the person that is going on with London 70 per cent you over here.
That.
Speaker 5: Yeah, okay, I got it. Yep, yep, I'm with you. All right. Thanks. Appreciate it
Yeah, Yeah, Okay, I got it Yep Yep I'm with Ya alright, Thanks, I appreciate it.
Speaker 1: Thank you. Thank you, ladies and gentlemen. As a reminder, should you have a question, please press star one on your touch tone phone. Your next question comes from Ruhu Racket, Life Sigh. Ruhu Ruhu, please go ahead.
Thank you. Thank you ladies and gentlemen, as a reminder, should you have a question. Please press star one on your Touchtone phone you're.
Your next question comes from Rahul Racket Lifesize Rahul. Please go ahead.
Speaker 2: Hey, I think you touched on this kind of a little bit just now, but I was wondering if you could just try a little more detail on the milestones that were delayed this quarter. And maybe just help us understand where it'll take to get those milestones completed and to obtain the associated revenues. You know, something that can be done and seen and pushed off to Q4s, something that, you know, might take a little while longer to see those revenues coming.
Hey, <unk> I already touched on this kind of a little bit just just now but I was wondering if you just try a little more detail on the milestones that were delayed this quarter and then maybe just help us understand what it'll take to get those milestones completed and to obtain the associated revenues yeah. It's.
Something that can be done and seen and pushed out to queue for or is it something that you know it might take a little while longer to see those revenues Kevin.
Speaker 3: Yeah, overall, when we introduced this deal to the, to the investors community, we were always talking about $30 million deal, that should be delivered over, over four to five years, in Q2, the game was adjusted in order to enable, actually,
Yeah, although all when we introduced this bill to the.
The Investor community will always talking about <unk> it should be delivered.
Over four to five years.
And Q2 the in game one was adjusted in order to enable.
Speaker 3: Also acceleration of this 30 million dollar deployment to four years and eventually the overall end of this 30 million dollar is between
Also acceleration of this 30 minute deployment that for four years and they eventually do yoga all the end of the $30 million between.
Speaker 3: data and clinical publication, the other part related to market access and another part related to development services. I think that
Data and clinical application the other related to market access and another related to development services.
I think that the most the kind of <unk> and less predictable is how we are making progress from an operation standpoint, with the development services that we want to do so for example, this year, we develop them medication cabinet and add the elements that will support <unk>.
Speaker 3: The most kind of numpy and less predictable part is how we are making progress from an operations standpoint with the development services that we want to do. So for example, this year we developed the medication cabinet and other elements that will support GLP1.
Speaker 3: And all these kind of things depend on the internal operation within Sanofian also us.
One and then all these kind of things depends on the internal operation within <unk> also us in terms of defining the requirements in defining.
Speaker 3: in terms of defining the requirements and defining when these kind of things can and need to be delivered. And there are a lot of things that are internally discussed inside Sanofi on how they want to get these kind of features and development delivered.
When this kind of thing say and it needs to be delivered in a lot of things that <unk>.
Disgusting sites enough fee on.
How they want to get this saying kind of features.
And development believe it.
Speaker 3: The best way to think about it is to think and I think that we also talked about it on the investor a couple of weeks ago.
The best way to think about it is to think and I think that we also talked about it on the Investor day, a couple of weeks ago I think the best way to look at it is to think about it on there.
Speaker 3: I think the best way to look at it is to think about it on a yearly base and look into like...
On a yearly basis and look into like six <unk> two $8 million on a yearly basis average and that's how we are trying to impose over this specific milestones what we'll try to do next you is to try to waive it as flat as possible away as balanced as possible.
Speaker 3: $6 million to $8 million a year-l of base average and that's how we are trying to impose all this set.
Speaker 3: specific milestones what we'll try to do next year is to try to every day as flat as possible or as balanced as possible so it would be less fluctuated and then it's gonna be easier to predict and to model
So it would be less fluctuated and then it's gonna be easier to the extent promoted.
Speaker 3: And that's a conversation that will try to do with an offer in order to get it that way. And that's going to be our objective. The damage that we feel that we are experiencing from this.
And that's a conversation that will try to do with center in order to get the tech way and that's gonna be our objective.
The damage that we feel that we are experiencing from this lumpiness of this revenues as a publicly traded company well the typical investor Wanna see gradual golf every quarter. It creates a lot of damage and noise in the market and we are spending a lot of time explaining it.
Speaker 3: Mumpiness of this revenues has a publicly traded company where the typical investor want to see gradual growth every quarter. It creates a lot of damage and noise in the market and we are spending a lot of time explaining it. The reality
Alrighty is that it it's it's very milestone believe in it that that's the that's the nature of the Beast. So I have a way to address it is to educate the market like that I'm doing it now and rest of the day like I did two weeks ago and I also try to collaborate with center in order to make it more.
Speaker 3: is that it's very milestone driven and that's the nature of the beast. So our way to address it is to educate the market like I'm doing now, investor day like I did two weeks ago, I also try to collaborate with nothing in order to make it more balanced across the different quarters and that's what we'll try to do. You need to remember that there are things that are happening.
Balanced because of the different quota and that's what we're trying to do.
We need to remember that things that are happening.
Speaker 3: In the world, I mean, Sanofi had some changes in the business in the last few quarrels. So things are not related directly to us. And we feel that some of the changes that are happening even should...
In the World I mean, Sanofi had some changes in the business in the last few quarters. So thing so I'm not related directly to us and we feel that some of the changes.
That they are happening even should benefit us and but this is something that is creating changes in internal planning and we have seen also this kind of changes say inside aetna.
Speaker 3: But this is something that is creating changes in internal planning. And we have seen also these kind of changes inside Etna that delayed the launch that we were supposed to have on July 1st. It's important to say that fundamentally...
<unk> was supposed to arrive on July 1st.
It's important to say that's fundamentally.
Speaker 3: the relationship with the North and with the North and with the North are becoming more strong. So I got a lot of phone calls from investors that
The relationship we sent off my <unk> of becoming more strong okay. So I'll go to a lot of phone calls from invest those of that we're looking.
Speaker 3: We're looking into the performance of the stock and they felt that
<unk> into the the the the performance of the store and they felt that something.
Speaker 3: something is happening with this relationship. So that's the time to say that the relationship or getting stronger, we are confident in the launch that we're gonna have generally next year. And we are confident in the relationship with Sanofi that we'll execute on the existing deal and even expand into additional lives in the future. Thank you so much.
Is happening with this relationship. So that's the time to say that the relationship of getting stronger we're confident in the lawns and if we're gonna have January next year and we are confident in the relationship we sent out.
That will execute on the existing <unk> and even expand.
Into additional lives in the future.
<unk>.
Speaker 2: Yes, please. Just to add a little, a little just specificity in terms of the changes. So, you know, the, the snowpey deal is three pieces, commercial data.
Yes, please just to add a little a little just specificity in terms of the changes. So you know the the snow <unk> deal is three pieces commercial data <unk>.
Speaker 2: and the development piece. And there was changes in the personnel on the development piece, the people that are doing the data and studies and doing the commercial have not changed.
And the development of peace and there was changes in the personnel on the development piece. The people that are doing the data and studies and doing the commercial have not changed or not materially changed and so there's been a period, where the folks the new folks who've been getting up to speed and that slowed down some of the things that would be new.
Speaker 2: or not materially changed and so there's been a period where the folks, the new folks have been getting up to speed and that slowed down some of the things that would be normally happening in this quarter related to development. So you know it will stretch out, that makes that stretch out a little bit but they'll still happen. It's just in terms of it took a little longer for them to get up to speed and for us to coordinate those activities.
Normally happening in this quarter related to development. So April stretch out that makes that stretch out a little bit, but they'll still happen. It's just in terms of it took a long little longer for them to get up to speed and for us to.
You know coordinate those activities as it relates to that.
Speaker 6: Okay, that's your help, and I appreciate you know the color of mute as well as I guess
Got it okay. That's very helpful and I appreciate it yeah, the caller from you as well or rather I guess.
Speaker 6: As in the process of trying to get people to better understand, what goes into these milestone revenues, it also just might be helpful to get some call from you guys on how dependent these milestones are upon each other. If we see, you know,
As in the process of trying to get people to to better understand you know what cause then he's mastered revenues. It also just might be helpful. In order to get to the car from you guys on how dependent these milestones are upon each other if we see you know.
Speaker 6: Sir and milestones get pushed off in one quarter. Does that mean that it's kind of shipped everything back in subsequent quarters and things are going to get lumpier and maybe shift back into 2024 as well? Or, you know, across those three aspects, you know, the commercial data development. I would
Certain milestones get pushed off in one corner does that mean that it's gonna shipped everything back in subsequent quarters and things are gonna get lop ear and maybe shipped back in to try 24, as well or you know across those three aspects yeah that.
The commercial data development.
Are they all.
Speaker 6: with the milestones within each of those channels, are they dependent on each other, or can they be achieved independently? especially whether you are playing the piano, is color-based and intimidating.
<unk> with the milestones within each of those channels are they depended on each other.
Can I.
That'd be achieved independently.
So the commercial.
Speaker 2: And the data side are not milestone driven. So the commercial is really just, you know, their market access team is selling the Dario solution through to their end customers, which are going to be health plans and PBMs as we, you know, saw Med1 come out. And they continue to make some actually really good progress with some of the other PBMs.
And the data side or not milestone driven so the commercial is really just you know there are market access team is selling the <unk> solution through to bear in customers, which are gonna be health plans and P. B M. Since we saw mid one come out and they continue to make some some actually really good progress with some of the other P. B M's <unk>.
Speaker 2: which I think is a significant opportunity on the data side. That's continuing to function, they're continuing to do, and finalize the two studies that they did. Those two studies are in publication at this point, and there's follow-on analyses, et cetera, that were being done. Those are not interrelated with each other. And if you think about the development pieces as sort of being your standard cycle of...
Which I think is a significant opportunity on the data side, you know that's continuing to function and they're continuing to do.
And finalize the two studies that they did those two studies or in publication at this point and there's no follow on analyses et cetera that were being done. So those are not in a related with each other and if you think about the development pieces as sort of being your standard cycle of.
Speaker 2: Coming up with what we want to do, agreeing on that, coming up with a specific specifications for it.
Coming up with what we Wanna do a green on that coming up with a specific specifications for it having that approved on an overall basis and then doing the development associated it that's delivering pieces within there is but what those milestones are and we don't you.
Speaker 2: Having that approved on an overall basis and then doing the development associated it, that's delivering pieces within there is what those milestones are. And we don't expect it. I don't see those like stacking up or getting different and becoming lumpier. It's just the question of when exactly does something get approved? When it shifts from one quarter or another, it moves the milestone from one quarter to another. The
Expect it there was <unk> I don't see those like stacking up or getting different and becoming lumpy or it's just a question of when exactly did something get approved when it shifts from one corner or another it moves the milestone from one quarter to another.
Got it that's helpful. I appreciate that thanks.
Speaker 1: Thank you, there are no further questions at this time. Please proceed.
Thank you there are no further questions at this time. Please proceed.
Thanks, everyone for joining a call this morning.
Speaker 3: Thanks everyone for joining our call this morning. Good day.
Have a good day.
Speaker 1: Thank you ladies and gentlemen, this concludes your conference call for today. We thank you for participating and as I you please disconnect your lines.
Thank you ladies and gentlemen. This concludes your conference call for today, we thank you for participating in as you. Please disconnect your lines.