Q4 2023 Ouster Inc Earnings Call
Hello, and welcome to our fourth quarter 2023 earnings Conference call. All lines have been placed on mute to prevent any background noise. After today's presentation and remarks, there will be an opportunity to ask questions.
I would like to ask a question. During this time. Please press star followed by the number one on your telephone keypad. If you would like to withdraw your question.
Simply press Star one again.
This call is being recorded and a replay of the call will be available on the Elster Investor Relations website, an hour after the completion of this call.
I'd now like to turn the conference over to Chen Yang VP of strategic Finance and Treasurer. Please go ahead.
Good afternoon, everyone. Thank you for joining us for our fourth quarter 2023 earnings call.
I'm joined today by <unk>, Chief Executive Officer, Angus Mccall, and Chief Financial Officer, Mark <unk>.
Before we begin the prepared remarks, we would like to remind you that earlier today <unk> issued a press release announcing its fourth quarter and fiscal year 2020 results.
An investor presentation was published and is available on the Investor Relations section of <unk> website.
I'd also like to remind everyone that during the course of this conference call <unk> management will discuss certain forward looking information, including commentary regarding our growth strategy and go forward financial framework, our first quarter 2024 financial guidance and other matters described in today's press release that are intended to be covered.
The safe Harbor provisions of the private Securities Litigation Reform Act of 1995 for forward looking statements.
Okay.
There is no guarantee that such plans estimates and expectations will be achieved and.
<unk> actual results are subject to risks and uncertainties that may cause actual results to differ materially from current expectations that will be may share with you today.
In addition to any risks highlighted during this call you should carefully consider other important risk factors and disclosures that may affect <unk> future results as described in the reports filed with or furnished to the SEC, including <unk> annual report on Form 10-K for the year ended December 31 2022.
As will be updated in <unk> annual report on Form 10-K for the year ended December 31 2023.
Except as required by law rule or regulation.
<unk> undertakes no obligation to update any of these forward looking statements for any reason.
After the date of this call.
Information discussed on this call concerning outsource industry competitive position in the markets in which it operates.
Based on information from independent industry and research organizations.
Other third party sources and management estimates.
Our derived from publicly available information released by independent industry analysts and other third party sources as well as data from <unk> internal research and are based on reasonable assumptions and computations made upon reviewing such data and its experience and knowledge of such industry end markets.
By definition assumption.
Assumptions are subject to uncertainty and risks, which could cause results to differ materially from those expressed in the estimates.
During this call we will discuss certain non-GAAP financial measures.
These non-GAAP financial measures should be considered as a supplement to and not a substitute for <unk>.
Measures prepared in accordance with GAAP.
For a reconciliation of non-GAAP financial measures discussed during this call. The most directly comparable GAAP measures. Please refer to today's press release.
I would now like to turn the call over to Angus.
Hello, everyone and thank you for joining us today.
2023 was a transformative year for <unk>, we successfully completed the merger with Teledyne, which forged a company with a stronger balance sheet expanded patent portfolio and streamline cost structure, we achieved important milestones across our operations, notably scaling production and shipments of <unk> seven are most.
<unk> sensor yet.
Additionally, we added new revenue streams with the launch of Aster, Gemini and Blues City and demo our first DF sensors with customers, marking a significant strides forward in our product development journey. This was all accomplished while delivering record financial performance significantly, reducing our cash burn and exceeding our.
Post merger annualized cost savings target by over 40%.
Let's delve deeper into the four strategic priorities, we laid out for 2023.
Drive new business execute on our digital latter roadmap develop a robust software ecosystem and build a financially strong business.
Looking back at the past year I believe the asset team has successfully executed against each of these goals.
First after booked a record $142 million in new business and generated a record $83 million in revenue, a 103% increase year over year.
We closed large multimillion dollar deals across all four verticals, including production wins by May mobility emotional to supply lidar sensors for their autonomous vehicles.
We also saw increased demand from mapping inspection and warehouse automation customers, who benefit from Brent Seven's dramatic improvements in range precision and accuracy.
This growth was complemented by the promotion of <unk>, our new senior Vice President of global sales.
<unk> has been with <unk> since 2018 and brings a comprehensive understanding of our market verticals deep relationships with some of our largest customers and experienced leading high performing sales teams.
Turning to our second priority. This year, we made significant advancements in our roadmap to develop the next generation custom Cmos chips that power all of our products.
First we taped out the <unk> chip our state of the art ASIC that will power. The next iteration of our OS sensors.
We also made exciting progress on the Chronos chip, our automotive grade custom silicon for the F series.
This year, we plan to integrate chronos into the final form factor DF hardware that we've already demo to over a dozen Oems and tier ones.
We also made progress on our certification roadmap to deliver functionally safe cyber secured products that meet ACB Sil, two and NEMA TST standards, we achieved ISO 27001 certification, which demonstrates our commitment to meet the highest standards of data security for our customers.
<unk> and partners.
This is in addition to our ISO 9001, and ISO 14001 certifications for quality and environmental management.
These achievements are key milestones that will help significantly expand our serviceable obtainable markets within the automotive industrial and smart infrastructure industries.
Shifting to software solutions ouster bolstered its product portfolio with the launch of Aster Gemini our cloud back digital light our perception platform for cloud analytics security and intelligent transportation systems.
This was a major milestone and added a new revenue stream, while lowering the barriers to lidar adoption and increasing stickiness with our customers.
We further expanded our solutions business with the addition of Blue City, our turnkey traffic management solution.
Throughout the year. These software solutions were enhanced with new deep learning AI perception models and partner integrations, we booked millions in software a couple of sales in 2023, and we expect the contribution from this revenue stream to continue to increase.
Finally in 2023, we made significant progress to build a financially strong business. We closed the merger with <unk> and transitioned to <unk> products to a lower cost manufacturer in Thailand.
Our efforts to optimize our cost structure surpassed our initial post merger annualized cost savings target by over 40% and significantly reduced our cash burn.
Through the refinancing of our term loan we lowered our cost of capital.
We also implemented a new financial framework to guide us towards profitability.
This robust business model not only sets us apart from our peers, but also establishes a platform that we believe will deliver long term value to our employees customers and shareholders.
Our achievements in 2023 complemented by our differentiated digital Lidar technology and AI powered software solutions supports our uniquely diversified business model and we will drive our near and long term revenue growth.
I am excited to continue this momentum in 2024, as we execute our plan towards profitability.
I'll now turn the call over to our CFO Mark <unk> to provide more context on our financial results for the fourth quarter and full year.
Mark: Thank you Angus and good afternoon, everyone.
Let me start off by discussing our latest quarterly results in the fourth quarter, we recognized a record $24 4 million in revenue a 10% increase over the third quarter <unk>.
The robotics vertical with the largest contributor to revenue followed by smart infrastructure.
Both vertical had multiple customers each generating over $1 million of revenue, which illustrates the evolution of our customers from pilot test to commercial deployment.
In Q4, we shipped over 4100 sensors a record quarter for ouster.
Mark: GAAP gross margins improved approximately 800 basis points to 22% versus 14% in the prior quarter.
non-GAAP gross margins improved to 35% in the fourth quarter and reached the highest levels since the merger.
GAAP operating expenses of $43 million or higher sequentially, driven by a litigation settlement and higher stock based compensation expenses, we expect our GAAP operating expenses to fluctuate quarter to quarter and we remain focused on improving operating expenses at or below third quarter 2023 levels.
Turning to full year results for 2023, we reported record revenues up $83 million, an increase of 103% year over year.
Bookings were 142 million and represented a book to Bill ratio of one seven times.
We expect to continue to report bookings on an annual basis.
During 2023, we shipped over 13500 sensors and achieved an average selling price of roughly $6 full.
Full year GAAP gross margins were 10% and non-GAAP gross margins were 30%.
GAAP operating expenses were $382 million, which included goodwill impairment charges of $167 million.
Looking back 2023 marked a year of transition as we successfully executed our plan to transform our cost structure drive revenue growth and put us on a path to profitability in each quarter since the merger, we delivered sequentially higher revenues higher gross margins and improved adjusted EBITDA. We also made significant.
<unk> financial progress by cutting our cash burn rate by over 50% since Q1 of 2023, lowering our cost of debt and improving our working capital management.
Overall these accomplishments put <unk> in a strong position as we enter 2024, we believe we have the most performance family of sensors on the market one of the broadest customer basis in the industry and a strong balance sheet with $192 million in cash cash equivalents restricted cash and investments and short term.
Mark: <unk> as of December 31.
Our cash balance at year end includes approximately $11 million raised via our ATM during the quarter, reflecting our strategy to maintain a strong balance sheet to help fund our future growth.
Moving to our revenue guidance for the first quarter of 2024 hour service targeting between $25 million and $26 million. This represents a sequential increase in revenue for the first quarter, which has historically been a seasonally weaker quarter.
I'll now turn the call back to Angus to share our 2024 goals and closing remarks. Thanks.
Thanks, Mark for 2024, we're focused on three strategic priorities for the business, which will extend our competitiveness accelerate lidar adoption and advanced ouster on the path to profitability.
First expand our software solutions and grow our installed base second advance the development of digital light, our hardware and third make meaningful progress on our long term financial framework.
Our smart infrastructure solutions, Alastair Gemini and Blue city are enabling customers to improve operational efficiency and safety.
We plan to release, new subscription based software tools later this year that improve the ease of installation and provide additional statistics and analytics to customers.
These tools will support expanded adoption by existing customers as well as new opportunities at global logistics companies security integrators and transportation authorities.
With millions of signalized intersections around the world and the global market for <unk> system security cameras already estimated at 32 billion. We expect software a couple of sales to be a key contributor to future growth.
For example, within smart infrastructure ouster was selected by a leading global logistics company for a multimillion dollar deal to deploy our digital lidar hardware, coupled with Alastair Gemini at approximately 130% logistics sites.
Mark: This represents approximately 5% of this customer's global footprint.
We see a massive opportunity to expand the deployment of our digital lidar solution to more sites over time and to replicate this offering with other leading logistics companies.
Turning to hardware Oster continues to progress on its digital Lidar roadmap developing technologies that will enhance operating performance expand the serviceable obtainable market and provide further differentiation versus peers.
Our <unk> next generation custom Silicon chip Dl four has been taped out and expected to bring significant improvements and the range field of view and manufacturer ability along with safety certifications to the OS sensor family.
In addition, we plan to integrate the Chronos chip into our solid state digital Flash sensors later this year.
Finally, <unk> has set a financial framework focused on achieving 30% to 50% annual revenue growth expanding gross margins to 35% to 40% and maintaining operating expenses at or below third quarter 2023 levels.
We expect 2020 for results to show meaningful progress against this framework, putting alastair on a path to profitability.
In closing <unk> was founded on the premise that lighter it needs to be digital if it is going to be ubiquitous.
Designed around our Silicon Cmos architecture, the performance of digital Lidar can scale exponentially in line with Moore's law.
Our digital approach enables low cost customization that opens up a broad industry applications, while maintaining a streamlined manufacturing process that is designed for scalability.
Now with cloud based software solutions, we are offering even more features simplifying adoption and expanding the use case for lidar.
We have a proven ability to manufacture at scale with positive gross margins and have demonstrated a strong track record of growth with record revenue and bookings over the last year. Our <unk> sensors are driving increased demand from material handling mapping and robo taxi customers, we see major opportunities to expand and reps.
Oster, Gemini and blues city deployments to existing and new customers throughout the year.
As a trusted American lighter provider <unk> is poised to capture increasing market share as the adoption of lidar accelerates across industries and I am as confident as ever in our future with that I would like to open it for Q&A.
Thank you if you have a question. Please press star one on your telephone keypad, if you have.
Queued up and want to withdraw your question simply press Star one again.
Your first question comes from the line of Andres Sheppard with Cantor Fitz.
Fitzgerald Your line is open.
Hi, Good morning, good afternoon, everyone and congratulations on the quarter and thanks for taking our question.
I guess I wanted to maybe get your thoughts.
Around the auto industry and kind of where that stands in terms of beginning to fully ramp up on lidar sensors I, obviously realize auto is not.
Our core.
Vertical for you guys, but just curious kind of what trends youre seeing as it pertains to the to the.
Auto industry. Thank you.
Thanks for the question.
Well the audio auto industry is an interesting piece for lidar because it represents huge promise, but also huge uncertainty given that there the uncertainty and timelines are adopting the technology.
And for that reason <unk> has taken a measured approach that we feel very confident with our automotive strategy in automotive is one of our four key markets. We have a well established set of automotive customers that we sell into today.
<unk>.
And we are developing our new DF products to specifically target the high volume consumer Adas opportunity that again is a massive opportunity with an uncertain timeline.
Now what elster is doing differently is focusing on building a product that we believe can capture that market.
In the long run build to the Holy Grail of what the market needs, which is a high performance compact and affordable sensor and sensor suite actually and that can play across many different form factors vehicle types models and levels of autonomy and that's represented with the DF sensor and.
And here, it's much more important to build the right thing and build it on a timeline that actually sets us up for decades of success versus being first to the market and waiting in some cases now as we're seeing for automakers to actually adopt a product that has come before the market is really ready for.
For it.
So I'm really happy we actually made major progress on the <unk> product line in 2023, I was able to personally be.
At present to demo the DF sensors with automakers and tier ones in 2023, we got great feedback on the architecture again small form factor high pixel density great range resolution field of view and fully solid state to meet the ruggedness of the automotive industry and now we're back to executing on building the Fi.
Devices and that really hinges on this chronos chip, where we have a world class team of Silicon designers that are building. The final chronos silicon that's going to go into the high volume DF product and that's something that is going to happen this year.
Got it thanks, and because that was super helpful. I really appreciate that.
Maybe a question for Mark <unk>.
As you continue to improve your gross margins unless you're inching closer to that 35% to 40% target.
Whats the best way to think about those asp's for 2024 relative to this past quarter, just curious kind of what trends or what's the best way, we can think about incorporating that into our model. Thank you.
Yes. Thank you for the question. So first of all this quarter Elster sold a record number of sensors, we had a great quarter in terms of shipments and in meeting customer demand a lot of demand came in at the end of the quarter a lot of interest and Thats, what led to our very high book to Bill ratio in terms of Asps going forward, we did have a slight decline.
Quarter to quarter on Asps, but it was nothing more than just a product mix shift in the quarter between different skus. So the good news for US is that our margins continue to improve and that's basically because of a couple of things. One is obviously revenue growth number two is that we are seeing a lower amount of excess and obsolete or some of these charges associated with the merger and third.
We are seeing just overall cutting of cost internally. So we can put together a structure of this year to reduce our cost structure, we have been moving products overseas to contract manufacturing and we are becoming more efficient. So those things have led for us to be able to increase our margins to basically that 35% level and obviously, we're very happy by the performance in the quarter.
Got it that's helpful and maybe just one last one if I could.
In regards to your liquidity.
Can you just remind us what is kind of the expected run rate now with.
The balance of $492 million.
Yes, we have $192 million in cash investment securities as of the end of December this quarter, we reduced our adjusted EBITDA loss to $14 million in cash burn, we're continuing to see opportunities to grow our revenues reduce our costs improve our margin. So our goal is to continue to move down that path to profitability.
One thing we did in the November and November as we laid out that financial framework, and obviously were hitting on all cylinders to go to meet that framework.
Got it great. Thanks again, congrats on the quarter I'll pass it on thank you.
Your next question comes from the line of Brian Dobson with Chardan capital markets. Your line is now open.
Thanks, Good evening.
Do you think you could perhaps.
Give us a little bit of color on what youre seeing in the industrial market right now.
How you view that business in comparison with automotive should be margin time spent with clients in order to execute deals.
Sure.
Thanks for the question Brian.
The the order there.
There are many corollaries.
In terms of time to market between the industrial market in the automotive market.
But.
But the rollout of the technology can happen more linearly.
Which allows for industrial customers to kind of.
Track to a more.
The expected timeline for the rollout of the technology. So what we've seen is that by engaging with a large number of industrial players.
We are able to identify the industrial companies that can create a set of parameters that allows them to get their product out quickly and really invest in those players and each and every year, a new set of industrial companies.
As a mature enough product that they can bring that to market and start to expand.
They are purchasing with us and bring bring expanding volumes to market and so.
That's that's much more of a predictable cadence because there are a lot of customers in this space.
And because industrial players are able to constrain the problem that they're that they're embarking on much better than the automotive players, where its kind of all or nothing.
And so that's led to a much more predictable business for alister.
There are still many benefits for ouster in the industrial space versus consumer automotive in terms of gross margins in ASP expectations.
And that really just falls to the type of end customer, it's not a consumer generally industrial players are selling <unk> to other industrial players and the equipment cost that they're putting our lidar on our are much more expensive. So multimillion dollar pieces of industrial machinery construction equipment mining equipment.
Can tolerate the higher price point higher asps than the consumer automotive industry. So.
That just has led to again, it's kind of reflected in our results our ASP resilience over the last year.
And the solid kind of quarter on quarter Rev.
Revenue build that we've shown for four quarters now since the mergers.
It really because of the diamond dynamics I just laid out in the industrial sector.
Excellent thanks very much.
Your next question comes from the line of Kevin Cassidy with Rosenblatt Securities. Your line is open.
Yes, Thanks for taking my question and congratulations on the great results.
And great progress.
<unk> improvement from here is it.
Lower material costs, those revenues or unit increase or as software the larger component of lifting gross margin.
Yeah. So I'll hit on a couple of items have led to the kind of improvements over the last couple of quarters, and then I'm sorry, just I want to talk a little bit about kind of the software opportunity.
After we did the merger the most important thing was really reducing the cost structure of the organization. The operations manufacturing group put a huge effort in terms of that we're able to move almost all developed and sensors overseas over the in the first few months.
And now we are actually a 100% outsourced over to us to our partner over in Thailand. That's led to a significant reduction in overall costs. We've also seen a big increase in our volumes. That's also given us additional opportunities in terms of operating leverage. So those are the two main factors that we've seen really in the last since the beginning of this year and then.
Obviously the release of the Rev. <unk> sensor, which has just it's the most performance sensor in the market. We get a we have a higher ESP a lot of customer interest in that and Thats really led to us to see overall improvements in our gross margins now going forward I'll leave it there and get to kind of walk through some of the go forward opportunities on the software side, Yes, Julian I would highly.
That there is further opportunity to produce.
<unk> unique features and capabilities in our next generation of OS sensors. So Rev. Seven has shown that kind of immense success that we can tap by iterating on our silicon and driving new capability in the Lidar hardware, we're going to continue that with El <unk> chip in the next generation of OS and PFS sensors, but on the software side with the solutions business.
We have developed in the last year.
Alastair Gemini and Blues city.
We see an opportunity to expand.
Expand our margin in that business and and potentially expand that the rate of adoption of Lidar technology for the smart infrastructure use cases.
As kind of a.
<unk>.
The added benefit to the software play that we're making there so.
You can imagine that the majority of customers that are buying after lidar have some significant investment in software that they are making to build a complete solution and that investment is something that we are now.
<unk> able to sell and provide value ourselves through these complete solutions that we're providing and smart infrastructure. So.
I think that there's more to come there on the margin side.
Okay great.
Kind of go into that question would be <unk> or if you expect that Asp's go up further.
And maybe as long as Im asking the question.
How do you handle software revenues.
Is it going to be folded into the average selling price.
Amortized over the number of <unk>.
Sensors or is it going to be a separate line item.
Yes, it's a great question and we are at.
As software. It does grow you will start to see that we will start to break out more information on that.
And that will probably start to happen.
Over the next year or so, but we are really excited about the amount of deployments that we've already done to date and what that looks like we are still refining the model as we work with customers and that will change over time as more customers come into the fold and start seeing the opportunity for the <unk> product line.
Yeah, and I would add I mean, the majority of our software revenue is subscription based software business. So we're already seeing customer willingness to adopt that model into the smart infrastructure sector.
Okay great.
Congratulations again.
Thank you.
Once again, if you have a question it is star one.
Yeah.
Hey, this is shouting that Wally on for Richard Shannon.
Congrats on the solid you guys.
My first question is on your Q1 guidance Q1 guidance implies 35% growth year over year, which is on the lower end of your full year guidance of 30% to 50% growth. So maybe here what is giving you the confidence that youll be able to maintain that 30% plus growth throughout 2024.
Yes, thanks for the questions.
We really highlighted three strategic priorities for Alister.
The first two are focused on growth.
So those being the software solutions expanded business the advancement in our digital Lidar hardware, both adolescent DF and third priority just executing more generally on the financial framework briefly we've laid out but focusing on the first two.
<unk> seen.
Incredible kind of uptake and rapid uptake in the Gemini platform and the Blues City platform.
<unk>.
Yes.
Really kind of positive outlook on how we're going to be able to expand that line of business more quickly with customers than our traditional.
Our hardware business alone.
And that's really because we are providing the full solution for the first time in the smarter.
These software solutions and generally.
The time from first revenue to kind of meaningful revenue with a customer and something like the automotive or industrial space is because the <unk> the <unk>.
Customer themselves is developing a full software solution on top of the hardware that they are purchasing by circumventing that and selling them that complete solution day, one it's allowed us to build a much faster revenue base for partners that are willing to purchase that complete solution from us. It is also allowing us.
The tap completely new markets. So Gemini is poised.
Is positioned to be sold into the security and cloud analytics space and the security industry, all told $32 billion.
A security system sold every year globally, so a massive market with well established customer base and a clear value proposition from Astor Gemini to provide a next level of performance.
Our complete solution so going after big markets, there are new opportunities for <unk> and they're also sped to two adoption by the fact that it's a complete solution.
Something a little different is happening, but but on this on the hardware side itself, but each time, we upgrade das sensors.
As an opportunity to remove barriers for customer to adopt our technology, we're able to provide more features more performance more environmental robustness.
To a customer that allows them to circumvent some of the challenging scenarios that they might get into good example, a mining machine thats used to operating in a dusty environment with the <unk> <unk> sensors. The sensors can pierce through dust in a way that previous generations of Lidar can't that allows a customer to just remove a whole set of <unk>.
Problems from from the scope of their their entire system design. So.
Things like that give us confidence that we're going to continue on this trajectory of building building to the long term model.
And hitting within those bounds that we established on revenue growth, 30% to 50%.
And obviously one key thing is that we had a great year in bookings, so we booked over $140 million. So.
That's kind of what gives us the confidence that we can continue to growth.
Just shown that we've been able to see a huge interest and by the way. These are take or pay binding orders that we received from customers.
Awesome.
Makes sense.
Thanks for the color on that.
Kevin Garrigan with West Park capital Your line is open.
Yeah, Hey, good afternoon, I guess, Mark and thanks for taking my question. Thanks for taking my questions and congrats on the results.
Yes, I think I asked you this last quarter, but any update on what software revenues were this quarter or is it too small or is it still too small in and any plans to kind of expand software into other end markets.
Yes, so so we arent breaking software revenues out at this point and we have mentioned that we've booked millions of dollars in software attached business software couple of business as the combination of the software solution with the Lidar hardware that we're selling.
We've put out.
Pretty fulsome press release in Q3 around the traction that we've seen over 300 sites deployed with our software solutions in 2023 to that.
<unk>.
To date in 2023.
And.
So so I think we're happy with the rate of deployment, but we will be breaking out software metrics, specifically when we feel that they've grown to a degree where it's relevant.
And then I'm sorry, what was the second part of the question.
Just wondering you guys have any plans to expand into other end markets.
Yes, I think that there is absolutely an opportunity to bring autonomy technol autonomy solutions into the industrial robotics and automotive markets.
Potentially in that order.
We started with smart infrastructure first because it has some of the largest existing preexisting established markets for instance, the security market the traffic systems market.
And some of the lowest.
Technical challenges to solve because it's fixed infrastructure versus safety.
Safety critical moving assets.
But that being said I think that there is there is a potential for us to continue to build these.
The software offers offerings and other businesses.
No.
Stay tuned I think the ouster of five to 10 years from now will look very different on what kind of software we're providing them.
The outdoor of today.
Yes, no that makes a ton of sense, okay perfect.
And just as a follow up as you kind of look back at 2023, and then looking forward to 2024 did the the rate of customers looking to become more autonomous and adopt lidar.
Whether it's the smart infrastructure of warehouses of robotics did that kind of play out as you thought it would in 2023 and you see that rate kind of accelerating in 2024.
Absolutely and I was going to save this remark for the end, but I think it's appropriate now for those of you that tuned into Jensen Huang.
And videos.
Presentation at GTC last week, he said it extremely well he said everything that moves in the future will be robotic.
And increasingly lidar sensors are whats, giving those machines the eyesight.
And that is in <unk>.
Immense tailwind for our business.
In 2024 and beyond.
Robotics is already one of our key markets.
And so we think that we are extremely well poised to capture the increased focus on automation and autonomy across the diversity of end markets and things like the advancements in AI.
The availability of performance and affordable.
Chips and coprocessors is the perfect complement to our business. So we absolutely think that we're taking advantage of those trends given that we focus from the start on being a diversified customer that is playing in these adjacent industries to automotive.
Yes, no that makes a ton of sense.
I agree okay perfect I appreciate the detail thanks, guys.
This concludes the question and answer session I'll turn the call to Angus Mccollough for closing remarks.
Well I want to thank all of <unk> employees for delivering on a record 2023.
And thank everyone that joined the call and ask questions today, and I look forward to an incredibly strong 2024.
This concludes today's conference call. We thank you for joining you may now disconnect your lines.
Please wait the conference will begin shortly.
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