Q4 2023 NaaS Technology Inc Earnings Call
2000, <unk> earnings conference call at.
At this time, all participants are in listen only mode.
Advise you that this conference is being recorded.
Like to turn the conference over to your first speaker today, Mr. John Wang.
Two of the Investor Relations. Thank you. Please go ahead.
Thank you, operator, and Hello, everyone and welcome to <unk> fourth quarter and fiscal year 2023 earnings Conference call.
The company's results were issued earlier today and are posted online.
Joining me on the call today are Ms. Kathy <unk>, our Chief Executive Officer, Ms. Vivian Liu our Chief strategy Officer.
And Mr. Alex <unk>, our president and Chief Financial Officer.
For today's agenda.
MS. Wang will provide an overview of our recent performance and highlights.
MS <unk>, who will discuss our operating results and Mr. <unk> will go through our financial highlights.
Before we continue I refer you to our safe Harbor statement in the earnings press release.
Which applies to this call as we will make forward looking statements.
Also please note that this call includes discussions of certain non FRS financial measures. Please refer to our earnings release, which contains a reconciliation of non.
<unk> measures to the most comparable <unk> measures.
Finally, please note that unless otherwise stated all figures mentioned during this conference call are in RMB.
I'll now turn the call over to our CEO Ms. Cathy <unk> Kathy. Please go ahead.
Hello, everyone and Maxi Kathy Waller.
My pleasure to share not small culture, and a full year 10 to 23 adults with all of you and to discuss our recent developments.
Intend to return to three.
Of course, our big scale.
And the revenue gap.
Potential growth.
Jack or take initiative.
What's inside our income tax rate.
Promoting the tenant both revenue growth and improving profitability.
Total revenue for the full year reached RMB $320 million.
Our year over year increase of 245%.
While gross profit increased to 14 10 to RMB 18 9 million.
Our full year gross profit market, it's pen gauge it from that point of sales percentage to contest that one point to 7% year over year and now effort not to margin narrowed it by 152% year over year.
On the operations front with exactly at Penn days, our charging network.
Our full year trading volume reached <unk> 95 was starting to take a one hour.
Our 81% year over year.
Great.
While the total number after new energy vehicles in China increased by 15.
<unk> five point <unk>, 8% during the same courage.
Meanwhile, with Zhao to improve profitability.
Our mobility connect to stick with it.
Take rate has recently filed <unk> system tamper attempt to 'twenty three.
<unk> positive in January 20th century, Fox and to continue to its 10th in February.
While maintaining our strong market position in charging so as it were.
We also explore new business models to further diversify our income stream.
Revenue from energy solutions reached to RMB 108 that were mainly for the school year 2023.
Accounting for over 58% of total revenues.
It's a segmented growth reflects our progress in shifting from images so its provider to a comprehensive energy solution provider.
Going forward with.
We will continue to lead the charge and so as this market, while exploring new paths to income diversification.
The strong foundation, we've built in 'twenty to 'twenty, three will empower us to consistently improved revenue and profitability.
The Companys development.
Yeah.
Now I will turn it over to meet we will our newly appointed CFO.
A closer look at our operating results.
Thanks, Kathy and Hello, everyone I'd like to start with a brief overview of how we are leveraging AI in our business. Our AI powered analytics capabilities are core advantage driving our profitability.
The supply side, we depend on AI to optimize network iPhone predictive maintenance needs and to reduce operational costs.
Hindsight analysis helps us understand usage patterns and efficiently deploy resources through.
We find operations and the strategic pricing adjustments, we have achieved a healthy balance between growth and profitability.
This AI driven approach has propelled our growth expanded our market share and solidified our position in the later in the new energy sector.
If that was the one nation, well stocked with a coffee and a global provider of comprehensive Iot solutions.
Leveraging our advantage in detail technology artificial intelligence and the various other areas.
Empower the development of the entire new to industry change.
I would call it spans a diverse range of new Iot related services.
Such as AI based to site selection and asset assessment, the telecom operators on intelligent operation and maintenance services for charging stations.
It can also act as a virtual power plant for greed aggregation.
Furthermore, we offer AI driven risk controlled autos for funded and financial institutions to accelerate Opex side development there.
Thereby propelling expansion of entire industry chain.
In short we can address the full spectrum of new energy in areas with tailored proven effective solutions.
In addition to couch biting vote in house capabilities, we have constantly expanded our partnership to quickly identify and optimize our incomes gotcha.
In 2024, we announced a collaboration with Foshan, China 10 City construction group to act I wish when he went to infrastructure construction.
We have also partnered with China, construction bank and Jennie O and do it in the face of new energy and new infrastructure to jointly promote charging network development.
Furthermore, in February we wanted to wait for the tour down I'm going to do with covenants and supervision service platform construction project.
Becoming a provincial government supplier intra province, and contributing our expertise to the construction of charging infrastructure.
This marks another significant milestone, but not into Dallas, new IMT sector. Following a successful solar panel and historic charging and battery swapping integrated construction project E G.
Also in terms of automaker partner shape, we cooperated with quite warm hotel GIC energy at a deep how automotive to expand the new energy vehicle charging services network.
We used to experience and important user acquisition channels.
Before I hand, it over to our CFO and Michele and update on our ESG efforts.
Knott's is deeply committed to ESG with the overarching goal of enhancing global transportation energy efficiency and sustainability.
This month, we were invited to participate aimed at fixed United Nations involvement Assembly, where we shout out innovation, combining green and digital elements.
Solutions, Stan as a powerful demonstration of China's commitment to global transportation honestly transformation and environmental and governance.
Additionally, we recently received a climate change b level ratings vegetation from the global environmental information such center to passing the global average sea level rating.
As always we remain dedicated to the pursuit of Green development and global carbon neutrality.
With that I'll give the floor to our CFO, Alex for a deeper dive into our financials.
Yeah.
Thanks Vivian.
I'll start with a review of our results for the fourth quarter of 2023.
In the fourth quarter, we increased our total revenues.
So 119% year over year to RMB $654 4 million.
This robust growth mainly stems from our mobility connectivity business.
<unk> has consistently recorded month over month uptake in profitable orders during September 2023.
Both in terms of their proportion of the total travel volume and total gross transaction.
This impressive growth is predominantly the result of our sophisticated data driven pricing strategy.
Additionally, our energy solutions business revenue increased to 144% year over year.
Largely due to our ongoing delivery of comprehensive energy solutions, including renewable energy generation energy management and storage solutions.
Looking at the full year 2023 was a record breaking year for Nab.
It was all time high performances in each of our core financial metrics.
We drove transformative growth and evolved strategically solidifying our position as the leader.
In the energy digitalization sector.
As calculation for the full year.
Annual revenue grew by an astounding, 345% year over year to an all time high of RMB $321 million.
Our tremendous growth reflects.
The ability of our business model and the increasing demand for our services.
We made significant advancements across three key metrics.
The charging volumes through mass network, which increased by 81% to 4968 gigawatt hours.
The gross transaction volume should go.
By 64% to $4 7 billion.
And the numbers of orders, which surged by 75% to one 200.
$13 8 million.
Equivalent to $6 eight odors transacted to mesh network the second.
Each of these metrics highlight our central role in driving the expansion of the industry's new energy ecosystem and.
Contributes directly to our revenue base.
Our primary focus has been on refining our operational efficiency across our core business segments.
So I can clear and ambitious growth for each one.
So in this way we.
We increased our full year gross profit 40 years old.
Some RMB $6 2 million in 2022 to RMB $88 8 million in 2023.
This also drove our gross margin up from six 6% in 2022 to 27, 7% in 2023.
Although our.
Net profit margin narrowed by 162%.
The improvement in our margin was mainly due to the increased profitability charging services.
Where we're gaining more operating leverage with fixed cost accounting for a smaller portion of our growing revenue base.
Positive momentum in our gross and net net take rate.
Those that we are advancing with greater operational efficiency.
Our net take rate turned positive.
First time in January 2024.
The positive MTI.
We opened seven 5% in February.
Marking the sixth consecutive months of MTI upgrades during September 2022.
Similarly, we're seeing a consistent upward trend.
Both take rate.
<unk> improved to 13 two.
2% in February.
Underscoring our operations and improving fundamentals.
There is a notable 55% year over year, you see transaction volume in the fourth quarter.
Progresses chime in both NPL and GTR further underscore the effectiveness of our refined operational strategy and demonstrates our strong customer stickiness.
Our strategic focus remains on the high quality growth and improving profitability as we forge ahead under this approach.
Our initiatives to.
Operational efficiency and streamline processes are yielding tangible results.
Placing us on a strong trajectory to reach mostly breakeven.
The EBIT level by the end of 2024.
In summary, massive firmly on the path toward global leadership, New energy asset management.
Our journey was masked by both strong revenue growth.
Operational efficiency.
Driving our sustained growth and advancement in the new energy demand.
This concludes our prepared remarks for today.
Later, we are now ready to take questions. Thank you.
Thank you.
We will now begin the question and answer session. If you would like to ask question. Please press star one one tennison and wait for a named two P. M.
He would like to cancel your request please press star one again.
For the benefit of all participants on today's call. If you wish to ask your questions to management in Chinese PC immediately repeat your question in English.
That will be a short silence all questions have been collected.
As a reminder to ask question. Please press star.
One one.
One moment for the first question.
Our first question comes from Kelly Cho from Jefferies. Please go ahead.
Thanks management for the presentation. This is how do you go from Jefferies.
I have two questions.
Hey, Betsy.
How about your strategic focus in Townsville is better than it is about the margin outlook, So basically what youre view.
Your service business margin.
Pension system sustainability.
Two to three years.
Ah.
The key drivers of the margin expansion, if you can share with me today.
Thanks.
Thanks, Kelly Ann.
Happy to answer your first question and frankly in 2024, we are quite only type margin improvement and aim to achieve profit breakeven.
Given our leading position in our platform and network.
Confidence in our ability to deliver these results and remain committed to our long term strategy and from a perspective of margin enhancement.
Likely the majority of our laws passing ought to be judge Judy use the subsidies in our early stage to charging a service business.
We are encouraged to see the MTR turned positive in 2024, while our overhead expenses remain relatively.
So consequently, we are on track to achieve profitability by the end of 2024, and secondly on the market expansion side, we have maintained a robust wise trajectory across all of our major matrix.
Our expansive quantum force of over 100.
Strategically deployed throughout China to engage with all of the <unk> side.
Furthermore, and in process, starting with the size of our users are organically acquired highlighting our strength in branding and user acquisition channels.
Moreover, once we successfully bring together.
Cpi's on our platform, we build out our digital and analytic capabilities to empower the charging station stakeholders in expanding their infrastructure and enhancing their operational efficiency.
As you can see in our fast growing charging service and energy system business will.
You need to leverage our technological strengths to monetize through our diverse business channels.
In conclusion, not is dedicated to improving the stability and efficiency of the global energy Transportation network with our strong technological capabilities, we are becoming a leading omni asset operator and contribute our assets in the ground paradigm shaped off the anti trust issue.
And next I believe Alex going to answer your question.
Second question.
Yes, Kelly, let me answer your question regarding gross margin.
Margin.
From a gross perspective first let's look at the markets right.
Very early stage of penetration in China.
There is only 5% of the vehicles on the road that are UV.
Third Party report suggest that China volume will grow at a CAGR of about 50% in the next seven to eight years, which means the market will grow 16 times by 2030.
And public charging as legal snow, we will continue to dominate as it's more efficient and requires less infrastructure investment than private charging in China.
Mass in this very appropriate.
The market is holding a leading position.
And we have some unique capabilities, which will sustain our growth and our margin improvement.
Number one is the analytics capabilities and that we leverage the AI based digital technology to drive insights on label use cases like real time dynamic pricing.
We also have a very strong local BD team.
With.
More than 100 people.
In cities.
These are the people that understand the local charging markets the best.
They have will record hand on the pulse of all the major cities in China in terms of charging.
We also connect to a large number of GPS.
By 2023, and we connect to more than 4000 Ceos.
And we connect to more than 5 million users as we continue to expand this network a holistic offering of services can bring EV.
Drivers and station owners together.
So if the hyper growing underlying market, a leading position in this market and key capabilities that are unique and difficult to replicate.
Great confidence that our growth will be sustained.
Same thing can be said for the margin right now connectivity business the largest part of our business.
He is currently enjoying a gross profit margin north of 80%, which is super high.
Our NCR as we mentioned in our earning release is all I have.
Has been lifted.
Five consecutive months, along with an expanded NCR.
Given the steady growth and controlled overhead gross profit will likely gradually covering expenses and margin.
That explains why we set the priorities to improve margin and reach EBIT breakeven echo to what <unk> just mentioned.
Thank you.
Okay.
And then on expense.
Yes.
Thank you for the questions.
Next question comes from the line of <unk> Chandra from Goldman Sachs. Please go ahead.
Thanks for taking my question.
So I have two questions.
And.
You took marcia in glaucoma rich not conflict with Iran.
About a year.
And could you share more on a more detail on how you will kind of show the overall costs.
Including Kahala.
Talking about the from the bottom line.
No.
So my second question is about our user growth.
You'll have a.
The subsidy catalog.
Yeah.
Can you share more color on how you are able to achieve my user acquisition MGM.
Thank you.
Yeah.
Great. Thanks team.
Your first question regarding <unk>.
Breakeven.
We are confident on the go no go is that we will achieve monthly update breakeven by end of this year 2024.
There are a couple of drivers for the breakeven.
Number one historically part of our loss was due to subsidies to charging users.
Especially in the early stage of the charging service business.
Since January 2024, we have managed to maintain our NTR as positive.
Hence transaction level become profitable.
I am confident that we will be able to manage this internal level for the rest of 2024.
Meanwhile, energy solution business, continuing to contribute gross profit and more growth.
Got it.
The scale up and maintaining a stable gross profit margin.
Besides the overhead.
Our.
Our backend quite stable and well controlled.
So if you put these things together as a result.
<unk> gross profits from our existing business lines scale up.
And as stable overhead and with a clear sign of profitability for our main charging service business.
Our margin will continue to improve.
And we will be able to reach monthly EBIT breakeven by the end of 2024.
Yeah.
So for your second question regarding the.
Online user acquisition and GMB growth.
That how can we sustain that is reduce the use of subsidies.
I have a couple of things to say.
Well.
Jonathan I would like to probably take a step back and look at the market again right.
China is a very big country.
With a lot of cities in different tiers.
And you'd be charging service as we both know is a localized market.
So each city is different.
Our experience is that the more balanced of the local supply and demand.
The higher the profitability of the whole value chain.
In the charging space.
The natural increase of EV ownership and traffic will gradually viewed a higher profitability for both Cpus and for us.
And the further reduced their need.
Cost to acquire users to subsidies.
So that's a that's a view from the market.
Secondly is our view for our operation.
We have been making efforts to leverage our market millhouse to acquire.
And maintain users more efficiently.
I'll give you a couple of examples.
For example, we have deployed a loyalty tier membership system.
Can meet.
More specified needs.
For different types of users.
Such as.
Taxi drivers.
Private car owners commercial vehicle drivers and so.
We also have leverage our AI technology to further improve our <unk>.
<unk> fee.
Of the Ceos in our platform by optimizing the real time charging price.
For those operators.
However, it is recognized by our fast improving operating numbers.
And when we are.
Reducing use of subsidies.
For example, we achieved a 114% year over year growth and charging service revenue.
55% year over year growth in trading volume.
48% year on year over year growth in transactional orders.
37% growth in GMB.
This fast growing numbers.
Just a strong user stickiness in the charging business.
The first thing I want to say is the ecosystem.
It's worth to mention that 68% of our mass users overlap with the existing users on our parent company, yielding group's gas feuding app.
The synergy between our parent group and Nash.
As one.
Advantage for us.
Okay.
So in summary, with the three points that I, just mentioned, including market, including operation interesting fee, including ecosystem.
As an early mover in the EV charging industry.
<unk>.
I believe that was all.
Or at this point.
We'll be able to achieve online user acquisition MGM regrows.
While we reduce subsidies.
Thank you.
Okay.
Yeah.
Thank you for the questions one will over the next questions.
Next question comes from the line Foundation from UBS. Please go ahead.
Yes.
<unk>. Your line is open please on mute locally.
Money. Thanks for taking my question you mentioned that NASA has signed a partnership agreement with EV Oems such as times deep how.
See adequate wall.
What do you see the benefit in fashion partnership.
How will you monetize on these partnerships.
Thank you Jack.
A question and currently we have established a strong partnership with over 80% in the Oems in China. Another remark to provide exceptional music services for their evs, including Neal Lee <unk>.
Fox <unk>.
Oh on Ehow GAC, great well best of luck.
Separation between us and <unk> is exciting.
Secondly, we assist Oems in integrating the EBIT charges dedicated Joubert infotainment defense.
Additionally, we provide Oems with the support they need to develop their own branded media charging mobile application.
And Furthermore, mining EBIT charges on by Oems are connected to our platform and enjoying the traffic from our use of court lastly to our collaboration with overseas Ppas, we are facilitating Oems expansion into the European and.
The Asia market.
This partnership gives us many advantages.
It will be chartered market.
Bethany New EV drivers are important so our user acquisition as we build out a partnership with the Oems. The media owners will ultimately become our users and will have a strong technology used underlying maybe truckload services that we provide them.
Leave that traffic and charging behavior information could enrich and optimize our digital analytic models, thereby assisting our valued OEM partners in delivering superior service to their customers and.
And we can always leverage that experience and this partnership to improve on energy assets operation model and monetize through our existing channels, such as allergy solution business and charging incentives business.
Quickly.
Era of intelligent transportation, we're confident that we will be able to offer a more comprehensive satish and enable the efficient delivery of smart energy in the Meanwhile, our autonomous driving.
Okay.
Thank you for the questions one more month of the next question.
Our next question comes from <unk> <unk> from Macquarie Capital. Please go ahead.
Hi, Thank you for taking my question.
Can you provide any update on the current competition for EV charging.
More specifically are you seeing any lower level of end user incentives being used in the market. Thanks.
Thanks.
Thanks, Jim Thanks for the question.
I would like to answer. This question one thing a couple of different angles, just to help people get a holistic view of the market because I think sometimes there are different views and sometimes there are myths that people could.
Proceeding to market first and I was just less cat.
I mentioned that market is Asia is a localized market.
In my previous answers.
I'd like to probably elaborate that point a little bit more.
Let's look at the first batch of cities, where we now have achieved positive NTR right. The first city that we achieved positive MTR in whole China is in Shanghai.
So obviously this is a a developing.
Our tier one city.
What we've seen generally as a trend is that.
In a later in those economically of advanced in regions such as coastal area.
We have gradually training, our NTR to cause issues.
So overall.
As the EV penetration continues to increase.
We will achieve a higher MCR over the larger market in China. So we've already witnessed this generally as a trend.
So that's from a localized market perspective.
From a supply side.
What we've noticed.
Is that the number of <unk>.
Is is increasing very very quickly, which suggest the market is getting very much fragmented and scattered.
Our system indicates that.
By year end 2023, we are connected to 4270 <unk>.
Which is a 170% year over year increase.
So that 4000 plus operators across China.
Alright, so that that indicate the supply side is getting more scattered.
The other the third.
Indication or data points that I can give.
Is.
There is obviously a difference between a hype.
Hyper growth market and a developed market.
If we take Europe as an example, as a developed market.
The service fee you recharging can.
Rich.
Somewhere between 60, <unk> euro to one euro per kilowatt hour.
And people would take that as normal.
So from that aspect.
I think China is still in a fast growing hyper growth space.
When the market become more material.
There is a very good opportunities that have higher profitability can be achieved.
The market value chain.
So these are the three angles that I can I can provide just to help understand the market a little bit better.
Thank you.
Thank you for the questions.
Yeah.
Our next question comes from July All you ran Liu from HSBC. Please go ahead.
Thanks for the opportunity.
Vivian just mentioned at NASS, we'd like to be a global provider may ask what is your overseas. It overseas expansion plan. So some details would be very helpful. Thank you.
Thank you your first question and secondly, I would like to fly.
China being the largest and fastest growing market for EV charging remains our top priority in our business expansion plans and given could fall off the penetration of E D.
High density of EBIT traffic.
The popularity of Papa EV charging user behavior independent research predict a 16% increase in charging bottom between 'twenty to 'twenty three 'twenty study. This implies that our underlying market is growing at approximately 50% CAGR over the next several days.
So we are confident that this change will continue to say that our business grows on exploration.
But in the meantime, we believe our core technological capability cabinet type vibe about two other buckets.
Our digital analytics.
One is managing one of the largest network of EV charging stations and one of the largest BBB driver use support globally.
Alkermes derived from our platform will be a valuable asset for us to enter into the new markets.
As we move forward with our global expansion, we're actively engaging different stakeholder in oversea markets and I'm excited to share three key FX.
In fact, we are collaborating with leading Chinese Oems to penetrate into European and South East Asia market and help them to provide charging strategy on network in oversea market.
We are also cooperating with overseas Tpa to provide charging services Judy tried it in a global market and Furthermore, we are integrating these capabilities into our advanced infotainment system.
And secondly, while also helping the belt and road countries to upgrade their energy infrastructure system with our mature amateur solutions, such as solar panel energy storage on the charges.
Lastly in January our novel branded DC and AC charges have option to see if that's the case in European market.
Our cutting edge hardware technology opens up new opportunities for us.
Bond into market, where EBIT infrastructure is a key focus for future investment.
In summary, we are laying a solid foundation to expand in oversea market and we firmly believe that our unique technological strengths, we're bringing benefits to both our partners and ourselves aimed global market.
Yeah.
Thank you for the question.
Our next question comes from Ethan Chang from Nomura. Please go ahead.
Okay. Thanks for taking my question. So my question is regarding the energy solutions business I noticed there were some <unk>.
Our tertiary exposure energy solutions revenue in Q3.
One very much money.
Could give us.
More visibility into the both treasury of this business. Thank you.
Thanks for your question.
Our energy solution business is mainly a project based business.
It has a seasonality, which usually is low you winter and spring, especially around.
Immediately before Chinese new year.
Annual peak in summer and fall.
The seasonality is a natural one and I think it applies to pretty much all of the major project based.
And our business.
With the seasonality consider though on a year over year basis, we have achieved a significant two four times your year over year goes yeah energy solution business.
We believe our core capability lies in the digital analytics capability, which is a unique and difficult to replicate.
With more partnerships being formed the core capabilities are gradually recognized by our partners and by industry.
There is some of the major projects remain such as the line in Hubei client is impressed with how accurate we can forecast.
Traffic and the pricing of a station that is yet to be built.
With the traffic and the pricing of that station determined by our AI technology.
We are able to tell declined.
Is that.
<unk>.
Our yield can be expected from a particular station.
Before it's been built.
That is something that is of very high value for potential investors.
In 2023.
We also ramping up our service capabilities from end to end.
Now we have energy solutions covering the full lifecycle.
From advisory to planning hardware procurement.
PC maintenance.
And energy storage.
And we are capable to provide full services for.
For the new energy asset owners alone the industrial value chain.
So to recap energy solution is a vital pillar of our growth.
I see it also as a tool where we can monetize our connectivity ecosystem and analytical capabilities.
Yeah.
Thanks, a lot.
Thank you for the questions.
Our next question comes from the line of <unk> from pinpoint. Please go ahead.
Thanks for taking my question and congratulations on the positive MTR and improving GTR that you achieved in the past few months.
How can we expect MTN TR and GTR to perform in Q1 and the rest of 2024.
Okay. Thanks for your question.
You are right. The things September 2023, we have been able to improve our NTR consecutively.
While we are also expanding our GTR.
As we disclosed in our annual report both Ctr NCR reached historical high since our listing.
Let me talk about this.
Separately, so GTR for GTR as we are expanding our operator network and.
And.
Increase our user base, we have the advantage to negotiate a higher GTR with operators.
We believe we can target more as the market is growing.
Also things, we see the market become more scattered as I explained before.
We also think.
In the mid to long sorry, the mutual loan payoffs ipos have been stronger relies on the traffic provided by us.
Further improve our bargaining power.
So thats what GTR.
Our net take rate.
We were able to achieve a positive net take rate.
Since the beginning of 2020 for.
This achievement.
It is mainly.
Driven from the improved capability.
To optimize user's subsidies.
For example, we have deployed a membership.
System.
That could meet.
Demand from different type of users. We have also leveraged our AI technology to optimize the real time charging pricing for our for our operators.
So we're basically doing.
Given the subsidy in a smarter way.
Or it can be more targeted to use our service fees and hence.
Increase the net take rate, while we reduce our subsidies.
If I give another benchmark.
Experienced from our parent company meetings gas dealing mobile app or scar triangle is that alright, MTR has reached between one 5% to 2% in the gas fuelling industry.
I think that can be used as a benchmark when we consider the EV charging space.
Space in the long run.
Thank you.
Thank you.
Concludes the Q&A session now I would like to turn the call back over to the company for closing remarks.
Thank you once again for joining us today, if you have further questions. Please feel free to contact us.
Thanks, Dave.
This concludes this conference call you May now disconnect. Your line. Thank you.