Q3 2024 Research Solutions Inc Earnings Call

Operator: Good day, ladies and gentlemen, and welcome to this Research Solutions, Inc. conference call. At this time, all participants are in a listen-only mode, and later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing the star and 1 on your touchtone phone. Please note that this call may be recorded. I will be standing by should you need any assistance. It is now my pleasure to turn today's program over to John Beisler, Director of Investor Relations. Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Research Solutions.

Good day, ladies and gentlemen, and welcome to this research Solutions, Inc. Conference call. At this time all participants are in a listen only mode. And later you will have the opportunity to ask questions. During the question and answer session. You been registered to ask a question at any time by pressing the star and one on your Touchtone phone. Please note. This call may be recorded I will be standing by should you need any assist.

John Beisler: It is now my pleasure to turn today's program over to John <unk> with Investor Relations.

John Beisler: Thank you, operator, and good afternoon, everyone. Thank you for joining us today for Research Solutions' third quarter fiscal 2024 earnings call. On the call today are Roy W. Olivier, President and Chief Executive Officer, and Bill Nurthen, Chief Financial Officer. After the market closed this afternoon, the company issued a press release announcing its results for the third quarter of fiscal 2024. The release is available on the company's website at researchsolutions.com. Before Roy and Bill begin their prepared remarks, I'd like to remind you that some of the statements made today will be forward-looking and will be made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those expressed or implied due to a variety of factors.

John Beisler: Thank you operator, and good afternoon, everyone.

John Beisler: Thank you for joining us today for research solutions third quarter fiscal 2024 earnings call.

John Beisler: On the call today are way W. Olivier President and Chief Executive Officer, and Bill <unk> Chief Financial Officer.

John Beisler: After the market close this afternoon the company issued a press release announcing its results for the third quarter of fiscal 2024.

John Beisler: It is available on the company's website at research solutions Dotcom.

John Beisler: Before before Roy and Bill begin their prepared remarks, I would like to remind you that some of the statements made today will be forward looking and made under the private Securities Litigation Reform Act of 1985.

John Beisler: Actual results may differ materially from those expressed or implied due to a variety of factors. We refer you to research solutions recent filings with the SEC for a more detailed discussion of the risks that could impact the company's future operating results and financial condition.

John Beisler: We refer you to Research Solutions' recent filings with the SEC for a more detailed discussion of the risks that could impact the company's future operating results and financial conditions. Also, on today's call, management will reference certain non-GAAP financial measures, which we believe provide useful information for investors. Reconciliation of those measures to gap measures is included in the earnings press release issued this afternoon.

John Beisler: Also on today's call management will reference certain non-GAAP financial measures, which we believe provide useful information for investors.

John Beisler: A reconciliation of those measures to GAAP measures is included in the earnings press release issued this afternoon.

John Beisler: Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link on the company's website. I would now like to turn the call over to Roy W. Olivier.

Speaker Change: Finally, I would like to remind everyone that this call will be recorded and made available for replay via a link on the company's website I would now like to turn the call over to Roy W. Olivier right.

John Beisler: Well, you may be on mute.

Speaker Change: Well you may be on mute.

Speaker Change: I am on mute you think guy Yeah, I haven't done this before.

John Beisler: Thank you, John, and thank you, Bill. As we've discussed in previous calls, it is our strategy to reimagine and improve the research workflow. Our recent acquisitions are a big part of that journey's success. After a few months of performance from SITE and Resolute, I remain excited and committed to the vision and how Resolute fits into that. We had strong quarterly results in terms of overall growth, adjusted EBITDA, and cash flow from operations.

Speaker Change: Thank you John and thank you Bill as.

John Beisler: As we've discussed in previous calls it is our strategy to re imagine and improve the research workflow. Our recent acquisitions are a big part of that journey success.

John Beisler: After a few months of performance from site and resolute.

John Beisler: I remain excited and committed to the vision and how site and resolute sits into that we.

John Beisler: We had strong quarterly results in terms of overall growth adjusted EBITDA and cash flow from operations.

John Beisler: The results are starting to show the ability of the business to scale as we continue this journey. The quarter represents a run rate of more than $48 million in revenue, with $16 million in SaaS platform revenue and approximately $32 million in document delivery or transaction revenue. I'm excited about the strategic and product progress we are making and what it means for our future growth. That said, I'm very excited about the financial transformation the business will undertake as we continue this journey and how it will translate to shareholder value creation.

John Beisler: The results are starting to show the ability of the business to scale as we continue this journey.

John Beisler: The quarter represents a run rate of more than $48 million in revenue with $16 million in SaaS platform revenue and approximately $32 million and document delivery or transaction.

John Beisler: Revenue.

John Beisler: I'm excited about the strategic and product progress, we are making and what it means for our future growth.

John Beisler: That said I'm very excited about the financial transformation the business will undertake as we continue this journey and how it will translate to shareholder value creation.

John Beisler: There are lots of moving parts in the numbers, so I'd like to pass it over to Bill to walk through our fiscal third quarter 2024 financial results in detail, and then I'll be back to discuss the business's progress and quarterly accomplishments in more detail.

John Beisler: There's lots of moving pieces in the numbers, so I'd like to pass it over to Bill to walk through our fiscal third quarter 2024 financial results in detail and then I'll be back to discuss the business is progress and quarterly accomplishments in more detail.

John Beisler: Bill.

William A. Nurthen: Thank you, Roy, and good afternoon, everyone. Before I begin, I'd like to remind everyone that our third quarter results now include a full quarter's contribution from both the acquisition of Resolute AI, which closed on July 28th of last year, and the site acquisition, which closed on December 1st, 2023. For fiscal year-to-date numbers, there are approximately eight months of Resolute AI and four months of SITE factored into the numbers. Total revenue for the third quarter of fiscal 2024 was $12.1 million, a 17% increase from the third quarter of fiscal 2023.

Bill: Thank you Roy and good afternoon, everyone.

William A. Nurthen: Our platform subscription revenue increased 76% to approximately $4 million. The growth was primarily driven by revenue contributed from the site acquisition, as well as a net increase in platform deployments from last year and the addition of platform revenue from the Resolute AI acquisition. We ended the quarter with $16.6 million in annual recurring revenue, or ARR, up 82% year over year and about 6% sequentially. We added about $1 million of incremental ARR in the quarter, the vast majority of which was in the site B2C business.

William A. Nurthen: Before I begin I'd like to remind everyone that our third quarter results. Now include a full quarter's contribution from both the acquisition of Resolute AI, which closed on July 28th of last year.

William A. Nurthen: And the site acquisition, which closed on December one 2023.

William A. Nurthen: For fiscal year to date numbers. There are approximately eight months of resolute AI and four months of site factored into the numbers.

William A. Nurthen: Total revenue for the third quarter of fiscal 2024 was $12 1, million% to 17% increase from the third quarter of fiscal 2023.

William A. Nurthen: Our platform subscription revenue increased 76% to approximately $4 million.

William A. Nurthen: The growth was primarily driven by revenue contributed from the site acquisition as well as a net increase of platform deployments from last year and the addition of platform revenue from the Resolute AI acquisition.

William A. Nurthen: We ended the quarter with $16 $6 million in annual recurring revenue or E. R. R.

William A. Nurthen: Up 82% year over year and about 6% sequentially.

William A. Nurthen: We added about $1 million of incremental <unk> in the quarter.

William A. Nurthen: The vast majority of which was in the site B to C business.

William A. Nurthen: I wanted to take a few minutes to discuss the limited sequential increase we experienced in B2B ARR in the quarter. We did, in fact, grow both Site B2B and Article Galaxy in the quarter. However, the vast majority of that growth was offset by churn in the Resolute AI business. While this churn was material, it was not completely unexpected and was concentrated across three large customers, all of which had renewal dates in Q3.

Speaker Change: I wanted to take a few minutes to discuss the limited sequential increase we experienced in <unk>.

William A. Nurthen: In the quarter.

William A. Nurthen: We did in fact grow both site B to B and article Galaxy in the quarter. However, the vast majority of that growth was offset by churn in the resolute AI business.

William A. Nurthen: While this churn was material it was not completely unexpected in Wisconsin traded across three large customers.

William A. Nurthen: All of which had renewal dates in Q3.

William A. Nurthen: The downside of this is the effect that it had on ARR in the quarter. The upside is that we have now cycled through most of the Resolute AI customers from a renewal perspective, and a good portion of the churn risk is behind us. This does not mean that we will not have future churn in Resolute AI. However, we believe the worst is largely behind us, and we are rolling out new products using Resolute technology.

William A. Nurthen: The downside of this is the effect that it had on air or in the quarter.

William A. Nurthen: The upside is that we have now cycled through most of the resolute AI customers from a renewal perspective.

William A. Nurthen: And a good portion of the churn risk is behind us.

William A. Nurthen: This does not mean that we will not have future churn and resolute AI.

William A. Nurthen: We believe the worst is largely behind us and we are rolling out new products using the resolute technology.

William A. Nurthen: On a positive note, site growth in both B2B and B2C ARR in the quarter was strong and above expectation. Additionally, we had some large cross-sell successes of sites within our Article Galaxy customer base, which Roy will speak about in more detail. When we announced the acquisition of SiteBook, we noted that they had about 3.6 million ARR.

William A. Nurthen: On a positive note site growth in both B to B and B to C. A R. In the quarter was strong and above expectations.

William A. Nurthen: Additionally, we had some large cross sell successes a site within our article Galaxy customer base, which Roy will speak about in more detail.

William A. Nurthen: Well, we announced <unk> acquisition, we noted that they had about $3 6 million of a R. R.

William A. Nurthen: Today they are roughly 5.5 million, and we continue to believe there's a lot of upside in both the B2B and B2C sides of the business. Please see today's press release for how we define and use annual recurring revenue and other non-GAAP terms. Transaction revenue for the third quarter was $8.2 million, a 1% increase from the prior year quarter. This quarter represents our first year-over-year comparison that includes the customer contracts acquired from the FIS Carlsruhe acquisition, which was effective January 1, 2023.

William A. Nurthen: Today, they are roughly $5 5 million and we continue to believe there is a lot of upside in both the <unk> and DSC sides of the business.

William A. Nurthen: Please see today's press release for how we define and use annual recurring revenue and other non-GAAP terms.

William A. Nurthen: Okay.

William A. Nurthen: Transaction revenue for the third quarter was $8 2, million% to 1% increase from the prior year quarter.

William A. Nurthen: This quarter represents our first year over year comparison that includes the customer contracts acquired from the Phase Karlsruhe acquisition, which was effective January one 2023.

William A. Nurthen: While the year-over-year increase was modest, Q3 is typically our seasonal best time for transaction revenue, and this quarter represented a company high mark for quarterly transaction revenue. Further, the year-over-year comparison was largely affected by a normal slowdown we experienced during the week of Easter, which was in March this year and was in April of last year.

William A. Nurthen: While the year over year increase was modest Q3 is typically our seasonally best time for transaction revenue in this quarter represented a company high Mark for quarterly transaction revenue.

William A. Nurthen: Further the year over year comparison was largely affected by a normal slowdown we experience during the week of Easter which was in March this year than it was in April of last year.

William A. Nurthen: In looking at early returns for April, the opposite effect is happening, and we are up significantly year over year with a strong start for the quarter. Our total active customer count for the quarter was 1,426 compared to 1,417 in the same period a year ago. Gross margin for the third quarter was 45.2%, a 630 basis point improvement over the third quarter of 2023. The increase is due to the ongoing revenue mix shift towards our higher-margin platforms business.

William A. Nurthen: And looking at early returns for April the opposite effect is happening and we are up significantly year over year with a strong start for the quarter.

William A. Nurthen: Our total active customer count for the quarter was 1426 compared to <unk> compared to 1417 in the same period a year ago.

William A. Nurthen: Gross margin for the third quarter was 45, 2%, a 630 basis point improvement over the third quarter of 2023.

William A. Nurthen: The increase is due to the ongoing revenue mix shift towards our higher margin platforms business.

William A. Nurthen: The platform business recorded gross margin of 85.5 percent, a decrease compared to 88.1% in the prior year quarter, but within the range of our gross margin expectations for platform revenue. This decrease is also related to the inclusion of Resolute's platform revenues, which generate a lower margin.

William A. Nurthen: The platform business recorded gross margin of 85, 5%.

William A. Nurthen: A decrease compared to 88, 1% in the prior year quarter.

William A. Nurthen: But within the range of our gross margin expectations for platform revenue.

William A. Nurthen: The decrease is also related to the inclusion of resolute platform revenues, which generate a lower margin.

William A. Nurthen: Gross margin on Article Galaxy remains consistent with recent history, and the gross margin of CITES products is similar to that of Article Galaxy. Gross margin in our transaction business increased 40 basis points to 25.7%. The increase was primarily attributable to increased copyright margins.

William A. Nurthen: Gross margin on article Galaxy remained consistent with recent history and the gross margin of sites products are similar to that of article Galaxy.

William A. Nurthen: Gross margin in our transaction business increased 40 basis points to 25, 7%.

William A. Nurthen: The increase was primarily attributable to increased copyright margins.

William A. Nurthen: This result was a little higher than we normally expect, and going forward, margins will likely fall back into a range between 24% and 25%. We remain confident in our ability to increase the company's blended gross margin as the revenue mix continues to be more heavily weighted with platform revenue. Platform revenues are now about a third of the business, but they contribute over 60% of gross profit.

William A. Nurthen: This result was a little higher than we normally expect in going forward margins will likely fall back into a range between 24% and 25%.

William A. Nurthen: Okay.

William A. Nurthen: We remain confident in our ability to increase the company's blended gross margin is the revenue mix continues to be more heavily weighted with platform revenues.

William A. Nurthen: Platform revenues are now about a third of the business, but contributing over 60% of the gross profit.

William A. Nurthen: Total operating expenses in the quarter were $5.4 million, compared to $3.9 million in the prior year quarter. The increase is primarily attributable to the addition of Resolute AI and SITE to the current quarter's results, as well as approximately $300,000 of non-cash depreciation and amortization expense, largely associated with the amortization of intangible assets associated with the acquisition. Turning to profitability, I mentioned on our last call that I thought the back half of our year would be much cleaner from a one-time expense perspective, allowing us an opportunity to demonstrate the profitability of the business.

William A. Nurthen: Total operating expenses in the quarter were $5 4 million compared to $3 9 million in the prior year quarter.

William A. Nurthen: The increase is primarily attributable to the addition of resolute AI insight in the current quarter's results as.

William A. Nurthen: As well as approximately $300000 of noncash depreciation and amortization expense largely associated with the amortization of intangible assets associated with the acquisitions.

William A. Nurthen: Turning to profitability I mentioned on our last call that I thought the back half of our year would be much cleaner from a one time expense perspective.

William A. Nurthen: Allowing us an opportunity to demonstrate the profitability of the business.

William A. Nurthen: Recall that in the first half of the year, we experienced roughly $1.3 million in expenses related to the proxy matter and M&A activities. In Q3, with those expenses largely behind us, we were able to post an operating profit and positive net income. Net income was $76,000, or break even on a diluted per share basis compared to net income of $230,000, or one cent per share, in the prior year quarter. This profitability also translated into a strong adjusted EBITDA performance.

William A. Nurthen: Recall that in the first half of the year, we experienced roughly one 3 million in expenses related to the proxy matter and M&A activities.

William A. Nurthen: In Q3 with those expenses largely behind US we were able to post an operating profit and positive net income.

William A. Nurthen: Net income was $776000 or breakeven on a diluted per share basis compared to net income of $230000 or <unk> <unk> per share in the prior year quarter.

William A. Nurthen: This profitability also translated into a strong adjusted EBITDA performance.

William A. Nurthen: We generated a company record of 961,000 of adjusted EBITDA for the quarter compared to 559,000 in the year-ago quarter. Turning to our balance sheet, we also experienced a new company record with respect to cash flow from operations in a quarter. In the quarter, we generated over $2 million in cash flow from operations compared to $1.8 million in the year-ago quarter. Cash and cash equivalents as of March 31, 2024 were $4.2 million compared to $2.7 million in the prior quarter. And that is where we stood at the end of Q2 after the cash spent on the site acquisition. We also entered into a new $500,000 line of credit with PNC Bank that remains untapped.

William A. Nurthen: We generated a company record of 961000 of adjusted EBITDA for the quarter compared to 559000 in the year ago quarter.

William A. Nurthen: Turning to our balance sheet, we also experienced a new company record with respect to cash flow from operations in a quarter.

William A. Nurthen: In the quarter, we generated over $2 million in cash flow from operations compared to <unk> 8 million in the year ago quarter.

William A. Nurthen: Cash and cash equivalents as of March 31, 2024 was $4 2 million compared to $2 7 million in the prior quarter.

William A. Nurthen: And that is where we stood at the end of Q2 after the cash spent for the site acquisition.

William A. Nurthen: We also entered into a new $500000 line of credit with PNC Bank that remains untapped.

William A. Nurthen: This line is flexible from both a covenant and cash diversification perspective, and we think it is a good fit for our needs and where we stand with the business today. As we look ahead, I think Q4 has the potential to be very similar to Q3 with some exceptions. First, with Q3 seasonally being our strongest period for transaction revenue, I would expect transaction revenue to be down sequentially but up modestly year over year.

William A. Nurthen: This line is flexible from both the covenant and cash diversification perspective.

William A. Nurthen: And we think it is a good fit for our needs and where we stand with the business to date.

William A. Nurthen: As we look ahead I think Q4 has the potential to be very similar to Q3 with some exceptions.

William A. Nurthen: First with Q3 seasonally being our strongest period for transaction revenue I would expect expect transaction revenue to be down sequentially.

William A. Nurthen: But up modestly year over year.

William A. Nurthen: Second, we are seeing very positive returns on our advertising spend related to B2C customer acquisition. As a result, we will be experimenting with increased advertising spend in Q4. So our sales and marketing expenses will likely be higher. All that said, I think the quarter will be relatively clean, and we should experience another strong adjusted EBITDA performance with cash flow behind it. I'll now turn the call back to Roy.

William A. Nurthen: Second we are seeing very positive returns on our advertising spend related to <unk> customer acquisition.

Roy: As a result, we will be experimenting with increased advertising spend in Q4.

Roy: So our sales and marketing expenses will likely be higher.

Roy: All that said I think the quarter will be relatively clean and we should experience another strong adjusted EBITDA performance with cash flow behind it.

William A. Nurthen: I'll now turn the call back to Roy right.

Roy: Thanks Bill.

Roy W. Olivier: In our last earnings call, I discussed our BHAG, or big goal, of $30 million in ARR by the end of FY26. Our ARR at the end of Q3 is 16.6, which means we're pacing a little behind that goal. However, this was largely due to the churn Bill mentioned within the Resolute AI business. Overall, our progress toward the BHAG will not be a straight line, but I remain comfortable with where we stand today. In addition, I'm very pleased with our revenue adjusted EBITDA cash flow from operations performance in the quarter, but we have several areas we need to continue to work on. My top three priorities are as follows.

Roy: In our last earnings call I discussed our behavior or big goal of $30 million in air or by the end of FY 'twenty six.

Roy W. Olivier: Our <unk> at the end of Q3 of 16.6, which means we're pacing a little behind that goal.

Roy W. Olivier: However, this was largely due to the churn bill mentioned within the Resolute AI business.

Roy W. Olivier: Overall, our progress toward the <unk> will not be straight line.

Roy W. Olivier: But I remain comfortable with where we stand today.

Roy W. Olivier: In addition, I am very pleased with our revenue adjusted EBITDA cash flow from operations performance in the quarter, but we have several areas we need to continue to work on.

Roy W. Olivier: My top three priorities are as follows.

Roy W. Olivier: First, integration across the new products that we've acquired as part of the Resolute and SITE acquisitions. We have completed the first phase of the Site Particle Galaxy, or AG, integration. We now support single sign-on so that users can seamlessly jump between AEG and the Site product.

Roy W. Olivier: First integration across the new products that we've acquired as part of the resolute and site acquisitions.

Roy W. Olivier: We have completed the first phase of the site article Galaxy or a G integration.

Roy W. Olivier: We now support single sign on so users can seamlessly jump between AG and the site product.

Roy W. Olivier: We have also added the Cite badge to the Article Galaxy product. As a reminder, this unique feature of the Cite product allows for a FICO or Rotten Tomatoes score for articles, so the user can more quickly judge the quality of the article or articles. While an AG user can click on that badge and jump to the site product to see detailed results, all users in the site can see pricing and availability of the articles in the site platform.

Roy W. Olivier: We also have added the site badge to the article Galaxy product as a reminder, this unique feature of the site product allows for a FICO or Rotten Tomatoes score for articles. So the user can more quickly judge the quality of the article or articles.

Roy W. Olivier: While in Asia user can click on that badge and jumped to the site product to see detailed results and all users inside can see pricing and availability of the articles in the site platform.

Roy W. Olivier: The second is Article Galaxy Growth. As a reminder, we have four drivers of Article Galaxy growth. The team we refer to as the new new team sells new logos and is on track to beat last year. The new existing team, which sells transaction-only customers, Article Galaxy, is also on track to beat last year. We continue to see challenges with the upsell team, who historically have delivered strong performance through moving customers up to more advanced features or software versions, in addition to adding seats and licenses. We continue to see that our customers are more careful with spin versus previous years.

Roy W. Olivier: The second is article Galaxy growth.

Roy W. Olivier: As a reminder, we have four drivers of article Galaxy growth.

Roy W. Olivier: The team we refer to as the new new team sell new logos and is on track to beat last year.

Roy W. Olivier: The new existing team, which sells transaction only customers article Galaxy is also on track to beat last year.

Roy W. Olivier: We continue to see challenges with the upsell team, who historically has delivered strong performance through moving customers up to more advanced features of our software versions. In addition to adding seats and licenses.

Roy W. Olivier: We continue to see that our customers are more careful with spin versus previous years.

Roy W. Olivier: The fourth driver of churn, which continues to remain high, higher, I'm sorry, than we have historically seen. That said, we have not seen any material increase in churn due to competition. A majority of our churn is uncontrollable in that it is due to the customer being acquired or going out of business. However, there is a block of controllable churn that we need to work on. And we brought in new leadership for that group, who's doing a nice job setting up new workflows and increasing our customer outreach to get ahead of this problem. My third priority is where we invest in growth.

Roy W. Olivier: The fourth driver of churn, which continues to remain high.

Roy W. Olivier: Hi, you're I'm, sorry than we have historically seen.

Roy W. Olivier: That said, we have not seen any material increase in churn due to competition.

Roy W. Olivier: A majority of our churn is uncontrollable and that it is due to the customer being acquired or going out of business.

Roy W. Olivier: There is a block of controllable churn that we need to work on and we brought in new leadership of that group, who is doing a nice job setting up new workflows and increasing our customer outreach to get ahead of this problem.

Roy W. Olivier: As we enter the next phase of our growth, we need to be thoughtful about how and where we will make investments to drive that growth. I think it's time we move forward building out a more focused sales approach around verticals or products to accelerate new logo onboarding. We are in our FY25 planning now, and I'll report back on this in our next call.

Roy W. Olivier: My third priority is doing is where we invest in growth.

Roy W. Olivier: As we enter the next phase of our growth we need to be thoughtful about how and where we will make investments to drive that growth.

Roy W. Olivier: I think it's time, we move forward building out a more focused sales approach around verticals or products to accelerate new logo on boarding.

Roy W. Olivier: We are in our FY 'twenty five planning now and I'll report back on this in our next call.

Roy W. Olivier: We have seen a lot of exciting activity with the new SITE product. From a B2B perspective, I reported on our last call that site B2B ARR was around 400,000. We closed over 200,000 new site deals in Q3 alone, some of which were cross-sells into our existing customer base. We have a very strong pipeline and expect to see strong results in the next couple of quarters. As part of your aforementioned cross-sells, we closed the largest site deal ever for a large pharma customer, which is a three-year contract. We closed our second deal in India, our first deal in mainland China, and two more first-for-that-country deals in the Middle East.

Roy W. Olivier: We have seen a lot of exciting activity with the new site product.

Roy W. Olivier: From a <unk> perspective, I reported on our last call the site B to B a R was around a R. R was around 400000.

Roy W. Olivier: We closed over 200000 in new site deals in Q3 alone some of which were cross sells into our existing customer base.

Roy W. Olivier: We have a very strong pipeline and expect to see strong results in the next couple of quarters.

Roy W. Olivier: As part of the ore from aforementioned cross sells we closed we closed the largest site deal ever to a large pharma customer which is a three year contract.

Roy W. Olivier: We closed our second deal in India, our first deal in mainland China and two more first for that country deals in the middle East.

Roy W. Olivier: On the ArticleGalaxy side, we've seen some good progress in the new new teams in terms of competitive takeaways and in closing larger deals. We closed a large ArticleGalaxy deal with a top 10 pharma customer during the quarter. I'm excited to see the progress here, as in the past, we've had more success with SMB. While SMB remains a majority of our new logos, our competitiveness in large deals is great for the business long term. On the resolution side, we saw unprecedented churn in Q3. As Bill mentioned, we do not expect that churn to return, I'm sorry, to remain and expect it to return to more historic levels going forward.

Roy W. Olivier: On the article Galaxy side, we've seen some good progress in the new new teams in terms of competitive takeaways and in closing larger deals.

Roy W. Olivier: We closed a large article galaxy deal to a top 10 pharma customer during the quarter.

Roy W. Olivier: I'm excited to see the progress here as in the past we've had more success with SMB.

Roy W. Olivier: While S N B remains a majority of our new logos our competitiveness in large deals is great for the business long term.

Roy W. Olivier: On the resolute side, we saw unprecedented churn in Q3.

Roy W. Olivier: As Bill mentioned, we do not expect that churn to return.

Roy W. Olivier: I'm, sorry to remain and expect it to return to more historic levels going forward.

Roy W. Olivier: On the positive side, we did close a contract with an existing AG client and released two new solutions around the technology landscape and clinical trial reporting based on Resolute software and data sets. The B2B site products... The B2B site product continues to show great progress. At the end of Q2, we reported B2C ARR to be 4 million; we ended Q3 at 4.9 million.

Roy W. Olivier: On the positive side, we did close a contract with an existing <unk> client.

Roy W. Olivier: And we released two new solutions around the technology landscape and clinical trial reporting based on resolute software and data sets.

Roy W. Olivier: The beta site products.

Roy W. Olivier: Sure.

Roy W. Olivier: The <unk> product continues to show great progress.

Roy W. Olivier: At the end of Q2, we reported B to C. A R. R to be 4 million. We ended Q3 at $4 9 million.

Roy W. Olivier: We continue to experiment with ad spend and monitor conversion to trials and then to subscribers. We have also seen some success in our B2C to B2B cross-sell efforts. We've seen a few individual B2C subscribers move into the B2B sales pipeline and close. We are entering the season, the typical slow season in the summer months for B2C, but we remain excited about this business's contribution as we move into FY25. Moving to document delivery or DOCDEL, our reported transaction revenue, we experienced a material slowdown in transaction sales in late March due to Easter this year. Last year, Easter was in April.

Roy W. Olivier: We continue to experiment with AD spend and monitor conversion to trials and then to subscribers.

Roy W. Olivier: We have also seen some success in our b to C to be to be cross sell efforts. We've seen a few individual BDC subscribers move into the b to b sales pipeline and close.

Roy W. Olivier: We are entering the season the typical slow season in the summer months for B to C. But we remain excited about this business is contribution as we move into FY 'twenty five.

Roy W. Olivier: Moving to document delivery or Doctor Hill, our reported transaction revenue, we experienced a material slowdown in transaction sales in late March due to Easter This year.

Roy W. Olivier: Last year Easter was in April I.

Roy W. Olivier: I can report that we've seen a strong rebound in Dockdale sales in early April. I can also report that, due to some work in the platform and through agreements to manage the publisher's paywall, we're seeing some nice Dockdale growth over FY23. In addition, we're starting to see some B2C sales as we integrate pricing and availability into the site product and due to UX improvements in Article Galaxy. You may recall we had some concerns about the impact of the proxy matter on our employee base.

Roy W. Olivier: I can report that we've seen a strong rebound in doctoral sales in early April I can also report that due to some work in the platform and through agreements to manage the publishers paywall, we're seeing some nice doctoral growth over FY2023.

Roy W. Olivier: In addition, we're starting to see some b to C sales as we integrate pricing availability into the site product and do the UX improvements in article Galaxy.

Roy W. Olivier: You may recall, we had some concerns about the impact of the proxy matter on our employee base.

Roy W. Olivier: We also recently completed our second Gallup Employee Engagement Survey, and I'm pleased to report that we showed nice improvement from a year ago; our engaged versus actively disengaged ratio has improved significantly. While we have, and we will always have more work to do, I'm very pleased with the progress in the Gallup results. As many of you know, I'm typically very measured in my comments about the business. However, when we did the diligence on site, we believed that its combination with our business had the potential to be very exciting and a transformational event.

Roy W. Olivier: We also recently completed our second the Gallup employee engagement survey and I am pleased to report that we showed nice improvement from a year ago.

Roy W. Olivier: Our engaged versus actively disengaged ratio has improved significantly.

Roy W. Olivier: While we have and we will always have more work to do I'm very pleased with the progress in the Gallup results.

Roy W. Olivier: As many of you know on typically very measured in my comments about the business when.

Roy W. Olivier: When we did the diligence on site, we believe that its combination with our business have the potential to be very exciting and trends.

Roy W. Olivier: A transformational event.

Roy W. Olivier: After a few months, I'm even more convinced that this is a path that can lead to something much greater than a simple one plus one. Our employees and customers are excited about what we can do to help research. And while I'm happy with the Q3 results, I'm also very excited about our overall direction and the long-term potential of what we're building here, how we can help improve research, and what that means for long-term shareholder value creation. With that, I'd like to turn the call back over to the operator for Q&A.

Roy W. Olivier: After a few months I view I'm, even more convinced that this is a path that can lead to something much greater than a simple one plus one.

Roy W. Olivier: Our employees and customers. We're excited about what we can do to help research.

Roy W. Olivier: And while I'm happy with a huge Q3 results I'm also very excited about our overall direction and the long term potential of what we're building here.

Roy W. Olivier: How we can help improve research and what that means for long term shareholder value creation.

Roy W. Olivier: With that I'd like to turn the call back over to the operator for Q&A.

Roy W. Olivier: Operator.

Operator: Gentlemen, thank you. And to our audience, a quick reminder that this is star and one. If you would like to ask a question, we'll hear first from Jacob Steffen on Lake Street.

Operator: Gentlemen, thank you and to our audience. A quick reminder, that is star in one if you would like to ask a question. We will hear first from Jacobs Stephan at Lake Street.

Jacob Steffen: Hey guys, appreciate you taking my questions here. Congratulations on the quarter as well. Roy, you made a comment kind of regarding churn and how it's usually not due to competition. I'm just curious, you know, how you're kind of seeing the opportunity to win market share from some of your competitors and kind of how you're positioning yourself there.

Jacob Steffen: Hey, guys I appreciate you taking my questions here, congrats on the quarter as well.

Jacob Steffen: Yeah.

Jacob Steffen: Right you made a comment kind of regarding churn and how it's usually not due to competition I'm. Just curious you know how.

Jacob Steffen: How youre kind of seeing the opportunity to win market share from some of your competitors and kind of how you're positioning yourself there.

Roy W. Olivier: Yeah, that's a great question. I think, you know, our strategy is to have a superior product in the categories that we participate in, which include discovery tools, which is where Site and Resolute come in. We continue to add functionality to ArticleGalaxy, which is our core access or document delivery platform, and we continue to add functionality to the References product, which is the reference management software. So, moving forward, as we more tightly integrate these tools together, we think that's a competitive advantage in that you're not exporting from one tool and importing into the next tool, and integrating some of the unique features like the site badge and additional AI capability into the platforms, we think adds real value.

Roy: Oh, Yeah. That's a great question I think you know our strategy is to have a superior product in the categories that we participate in which include discovery tools, which is where site and resolute come in.

Roy W. Olivier: We continue to add functionality to article Galaxy, which is our core access or document delivery platform.

Roy W. Olivier: And we continue to add functionality of the references product, which is the reference management software. So moving forward as we more tightly integrate these tools together, we think that's a competitive advantage and that youre not exporting from one tool and importing into the next tool and.

Roy W. Olivier: And integrating some of the unique features like the site that and additional AI capability into the platforms, we think adds real value.

Roy W. Olivier: In addition to the fact that our objective is to simply be the easiest and fastest research tool out there today, so it's a much longer conversation about that, but I feel like we have made progress and continue to have a good strategy to be competitive and take share as we move forward.

Roy W. Olivier: In addition to the fact that our objective is to is to simply be the easiest.

Roy W. Olivier: And fastest.

Roy W. Olivier: Research tool out there today. So it's it's a it's a much longer conversation with that but I feel like we have made progress and continue to have a good strategy to be competitive and take share as we move forward.

Jacob Steffen: Got it, understood. And maybe just one more, you guys had a solid quarter and kind of B2C expansion. You noted that kind of sales and marketing efforts are going to be, you know, implemented kind of in Q4 here, but, you know, I guess, how should we think about sales and marketing moving forward? You know, we saw your first quarter over a million in expenses here in Q3, but maybe just a sense of how we can see that trending over the near term.

Speaker Change: Got it understood and maybe just one more.

Jacob Steffen: You know you guys had a solid quarter and kind of been a C.

Jacob Steffen: Expansion.

Jacob Steffen: And kind of sales and marketing efforts are going to be.

Jacob Steffen: Implemented kind of in Q4 here, but I guess, how how should we think about kind of sales and marketing moving forward.

Jacob Steffen: We saw your first quarter over $1 million and expense here in Q3, but maybe just any sense on how we can see that trending over the near term here.

Roy W. Olivier: Yeah, I'll let Bill comment on the numbers. But, big picture, as Bill mentioned, we will invest a bit more in digital ad spend as we continue to experiment with the right spend that drives trials and subscribers on the B2C side. On the B2B side, we don't expect any big changes as we roll into Q4. We may add some additional costs as we go into next year, but I think they will be negligible.

Speaker Change: Yeah, I'll, let bill comment on the numbers I mean big picture as Bill mentioned, we will invest a bit more in digital AD spend as we as we continue to experiment with the right spend that drives trials and subscribers on the BDC side.

Roy W. Olivier: On the B to B side, we don't expect any big changes as we roll into.

Speaker Change: Q4, we may.

Roy W. Olivier: Had some additional cost as we go into next year, but I think it'll be negligible, but built.

Speaker Change: Any comments.

William A. Nurthen: Yeah, a couple. First, you know, this was the first quarter that we fully had a site represented from a cost-based perspective, and so that's what's kind of pushing us to that $1.1 million we had this quarter. And I do think that's sort of a reasonable run rate with the one exception of marketing spend. I think we're going to, you know, we'll experiment. We'll probably do anywhere $150,000, maybe $200,000 of additional marketing spend in the quarter, and there are metrics that we'll be looking at to see what kind of return we're getting on that expenditure and whether that'll kind of continue going forward or not.

Bill: Yeah, a couple of items first this was the first quarter that we fully had site represented from a cost base perspective, and so that's what's kind of pushing us to that you know the.

William A. Nurthen: The $1 1 million, we had this quarter and I do think that's sort of a reasonable run rate with the one exception of marketing spend.

William A. Nurthen: I think we're going to we will experiment, we'll probably do anywhere 150000, maybe 200000 of additional marketing spend in the quarter and there are metrics that we will be looking at to see what kind of return were getting on that expenditure and whether that will kind of continue going forward or not and so it is something that.

William A. Nurthen: And so, it is something that, one, we get a very quick read on how it's working, and then, two, we can adjust quite rapidly, you know, turn on or turn off if we're not seeing the results that we want. So, I think that's how I would look at that line on the P&L on a go-forward basis.

William A. Nurthen: Why don't we get a very quick read on how it's working.

William A. Nurthen: And then two we can adjust quite rapidly.

William A. Nurthen:

William A. Nurthen: Turn on or turn off if we're not seeing the results that we want so I think that's how I would look at that line on the P&L on a go forward basis.

Jacob Steffen: Okay, yeah, I appreciate that. And maybe, sorry, I'll just hop in with one more.

Speaker Change: Okay, Yeah, I appreciate that and maybe sorry, just happened with one more.

Jacob Steffen: Maybe kind of help us think about the overall B2C opportunity. Obviously, you know, it was a nice quarter of ARR growth, but how are you thinking about kind of the overall opportunity here and growth rate or growth expectations? Yeah, I think, you know, be the CEO.

Speaker Change: Can you kind of help us think about the overall BDC opportunity.

Jacob Steffen: Obviously, you know it was a nice quarter of Ara growth, but how are you thinking about kind of the overall opportunity here and.

Jacob Steffen: Growth rate or growth expectations.

Roy W. Olivier: Yeah, I think, you know, B2C is new to us, and we don't know what we don't know relative to what really are good churn rates. I mean, when we compare it to the churn rates of the B2B business, they're obviously materially different. But the onboarding rate of new customers is also very, very different. So in terms of, you know, TAM for that business, we know that roughly, I'm looking up the exact number, 25 to 50 million researchers out there, or when I say out there, I mean that they subscribe to a platform that focuses on research.

Speaker Change: Yes, I think it will be the C.

Roy W. Olivier: Is new to us and we don't know what we don't know relative to what are what really are good churn rates I mean, when we compare it to the churn rates are the b to b business, there, obviously materially different but the onboarding rate of new customers is also very very different.

Roy W. Olivier: So in terms of you know Tam for that business, we know that.

Roy W. Olivier: There's roughly I'm looking at the exact number 25 to 50 million researchers out there.

Roy W. Olivier: Or when I say out there I mean that subscribe to our.

Roy W. Olivier: Our platform that focuses on research. So we think theres, a very large tam, especially in comparison to how many users we have today.

Roy W. Olivier: So we think there's a very large TAM, especially in comparison to how many users we have today. The question is, you know, can we continue to deliver value to expand the lifetime value of a customer that signs up, in addition to continuing to onboard customers. And so far, as we've increased spend, we've not seen a material change in terms of the cost per trial or the trial to subscriber conversion rate. And that's why, as Bill mentioned and I mentioned, we're going to dial up that spend and see where the point is where we see any material change in those numbers.

Roy W. Olivier: The question is.

Roy W. Olivier: You know can we continue to deliver value to expand the lifetime value of a customer that signs up in addition to continuing to onboard customers in so far as we've increased spend we've not seen a material change in terms of the cost per trial or the trial the subscriber conversion rate and that's why as Bill mentioned.

Roy W. Olivier: I mentioned, we're going to dial up that spend and see where the.

Roy W. Olivier: All that said, it has more seasonality than the rest of our business. So we're dialing up spend this much this month. I'm sorry. We're going to be careful about June, July, August, and then we'll dial up spend again as people get back to school.

Roy W. Olivier: Point is where we see any material change in those numbers all of that said it is a it has more seasonality than the rest of our business. So we're dialing up spend this much. This month I'm sorry, we're going to be careful about June July August and then dial up spend again as people get back to school.

Speaker Change: Anything you want to add bill.

Roy W. Olivier: No, I think that covers it, right?

Speaker Change: No I think that covers it right.

Jacob Steffen: Okay, I appreciate it, guys. Best of luck going forward here.

Speaker Change: Okay I appreciate it guys best of luck going forward here.

Speaker Change: Thank you. Thank you.

Operator: Again, ladies and gentlemen, that is Star and One. We'll hear next from Alan Klee at Maxim Group.

Jacob Steffen: Again, ladies and gentlemen that is star and one we will hear next from Alan Klee at Maxim Group.

Allen Robert Klee: Hi. You gave them to me.

Allen Robert Klee: Hi, you you gave them.

Roy W. Olivier: Your fiscal 2026 guidance for annual recurring revenue, how do you think about how it ramps up over the next two-plus years to get there? Is it kind of accelerated in your mind, or is it kind of a steady eddy, or how do you think about that? Thanks.

Allen Robert Klee: Your 2000 fiscal 2026 guidance for annual recurring revenue.

Roy W. Olivier: How do you think about how it ramps up.

Roy W. Olivier: Over over the next two plus years to get there or is it kind of accelerating in your mind or is it kind of a steady Eddie here.

Roy W. Olivier: How do you think about that thanks.

Roy W. Olivier: Yeah, just to be clear, I wouldn't call our $30 million target guidance. For me, it's a BHAG. It's a big, hairy goal that we're chasing. And we typically don't provide guidance on the top or the bottom. But as you know, three years ago, I provided a BHAG of $20 million. That's what we were chasing. And now I've moved it to $30

Speaker Change: Yes, just to be clear I wouldn't call our $30 million target guidance for me. It's a it's a b hag its a big hairy goal that we're chasing.

Roy W. Olivier: You know, we typically don't provide guidance on the top or the bottom, but as you know three years ago I provided a b has a $20 million that's what we were chasing.

Roy W. Olivier: Back to your question, though. No, I think we'll see an acceleration in the number. Keep in mind, we've not fully integrated the products. We haven't built all of the new products we're going to build out of the combination of the three companies, Research Solutions, Site, and Resolute. We've also not finished implementation of a lot of things we think will drive growth in the future. So me being relatively conservative, I am looking for 1.5 million or 1.44 million in growth, net ARR growth per quarter, but we won't hit that in these early quarters, but I believe we'll outperform that as we start to get into certainly the second half of FY25 and then throughout 26.

Roy W. Olivier: And now I've moved it to 30.

Roy W. Olivier: Back to your question, though I know I think we will see acceleration in the number keep in mind, we've not fully integrated the products. We haven't built all of the new products, we're going to build out of the combination of the three of the three companies research solutions site and resolute.

Roy W. Olivier: We've also not finish the implementation of a lot of things, we think will drive revenue in the future. So.

Roy W. Olivier: <unk> being relatively conservative I I am looking for $1 5 million or 144 million in gross net AOR growth per quarter, but we won't hit that in these early quarters, but I believe we will outperform that as we start to get into certainly the second half of FY 'twenty five and then throughout 'twenty six.

William A. Nurthen: That's great. Thank you. Just a housekeeping question. What's your current share count? (inaudible)

Speaker Change: That's great. Thank you.

Speaker Change: Just a housekeeping question, what's your current share count.

William A. Nurthen: Phil.

William A. Nurthen: Yes, it's right around 32.5, I want to say. Let me just confirm. Yeah, 32.3 million.

Speaker Change: Yes, its right around 32, five I want to say, let me just took permit 30 to $332 3 million roughly.

Allen Robert Klee: Thank you. And you announced two new products or features recently; can you talk about those features and if you can give any sense of the opportunity from them?

William A. Nurthen: Thank you and and you announced.

Allen Robert Klee: Two new products or features.

Allen Robert Klee: Recently can you talk about those features and if you can give any sense of the opportunity from them.

Roy W. Olivier: Yeah, we think, within the organizations we serve, there are typically departments that are focused on clinical trials or the tech landscape. And the way those products work is we're basically using one of our search engines to allow you to put in criteria.

Allen Robert Klee: Yes, we think you know within the organizations. We serve there's typically a departments that are focused on clinical trial or tech landscape and the way those products workers were basically using one of our search engines to allow you to put in criteria. It will then gather together.

Roy W. Olivier: It will then gather together a tremendous amount of information. Some of it is in peer-reviewed scientific articles. Some of it is in the external data sets that Resolute has, and it will literally write a summary of the tech landscape for the subject matter you search for or write a summary of the clinical trial research that you ask it to run. So effectively, what it does is it dramatically reduces the amount of time it takes to do those functions within heavy research-intensive organizations.

Roy W. Olivier: A tremendous amount of information some of it is in the peer reviewed scientific articles some of it is in the external datasets that resolute has.

Roy W. Olivier: It will literally right a summary of the tech landscape for the subject matter you search for or write a summary of a clinical trial research that that you asked it to run so effectively what it does is it dramatically reduces the amount of time it takes to do those functions within heavy research research intensive organizations.

Roy W. Olivier: These tools, we don't expect to be tens of millions, but we do expect them to grow over time. However, I think the TAM for that is certainly smaller than ArticleGalaxy or CITE. Any version of CITE, simply because the research organizations in the companies that are our targets are typically, you know, tens, hundreds, even thousands of researchers, whereas the departments that are doing that type of work are much smaller. So, they're exciting products.

Roy W. Olivier: These tools, we don't expect to be tens of millions, but we do expect them to grow over time. However, I think the Tam for that is certainly smaller than article galaxy or site.

Roy W. Olivier: Any of the versions of site simply because the research organizations in these in the companies that are our targets are typically.

Roy W. Olivier: Tens hundreds even thousands of researchers, whereas the departments that are doing that type of work or much smaller.

Roy W. Olivier: So they're exciting products they line up with our strategy of helping all the various steps and departments involved in the research process, but I would not think of them as an opportunity anywhere near the size of site site pro.

Roy W. Olivier: They line up with our strategy of helping all the various steps and departments involved in the research process, but I would not think of them as an opportunity anywhere near the size of CITE, CITE Pro, or ArticleGalaxy or ArticleGalaxy Reference.

Roy W. Olivier: Or article Galaxy or article Galaxy references.

Allen Robert Klee: Thank you. Last question on your increase in sales and marketing, as you've gotten good results for that. How do you think about, like, the hopeful cost to acquire, you know, if you spend an extra dollar in sales and marketing, what do you hope to get for that?

Roy W. Olivier: Thank you the last question on your.

Allen Robert Klee: On your increase in sales and marketing as you've gotten good results for that.

Allen Robert Klee: How do you think about like the.

Allen Robert Klee: We're hopeful you know the cost to acquire.

Allen Robert Klee: If you spend an extra dollar in sales and marketing.

Allen Robert Klee: Hope to get for that.

Roy W. Olivier: Yeah, I mean, I can pull something up here and give you some context. When we invest, Bill, do you want to comment on the B2C side? And I've got a couple comments on the B2B side.

Speaker Change: Yeah, I mean, I can I can pull something up here and give you some context.

Bill: When we invest.

Roy W. Olivier: Well Bill do you want if you want to comment on the B. The C side and I've got a couple of comments on the <unk> side.

William A. Nurthen: Yeah, so typically on the B2C side, we're typically looking at two metrics. One is the customer acquisition cost and the time to pay back that cost. And the other is the lifetime value of that customer, you know, as a ratio compared to the cost to acquire that customer. And so, you know, obviously, as we're spending more, we're looking to see if those metrics are improving, not improving, and where we can kind of optimize those.

Bill: Yeah. So typically on <unk> side, we're typically looking at two metrics.

William A. Nurthen: One is the customer acquisition cost and the time to.

William A. Nurthen: To pay back that cost and the other is the lifetime value of that customer.

Speaker Change: Yeah, you know over.

William A. Nurthen: As a ratio compared to the cost to acquire that customer and so.

William A. Nurthen: Obviously as we're spending more we're looking to see if those metrics are improving not improving and where can we kind of optimize those in general looking for pretty quick payback like under six months or so.

William A. Nurthen: In general, we're looking for pretty quick payback, like under six months or so. You know, under 12 months is more the standard, but we're looking maybe a little bit more aggressive there. And, you know, trying to minimally be above kind of three times lifetime value to CAC. So, those are things we're looking at, but it's really more, you know, are these trends, are these numbers improving as we add spend? Are they starting to deteriorate? And that's what we're monitoring.

William A. Nurthen:

William A. Nurthen: Under 12 months is more of a standard, but we're looking maybe a little bit more aggressive there and.

William A. Nurthen: We're trying to minimally be above kind of three times lifetime value to CAC. So those are things, we're looking at but it's really more.

William A. Nurthen: Are these trends are these numbers improving as we add spend are they starting to deteriorate and that's that's what we're monitoring.

Roy W. Olivier: Yeah, we have a similar approach on the B2B side; just the numbers are a bit different. So we typically have experienced, you know, between 12 and 18 month payback periods, and we typically have a very large kind of lifetime value because customers don't churn out at a fast rate.

Speaker Change: Yeah, we have a similar approach on the beta besides just the numbers are a bit different. So we typically have experienced you know between 12 and 18 month payback period than we typically have a very.

Roy W. Olivier: Large kind.

Roy W. Olivier: Kind of lifetime value because customers don't don't turn out at a at a fast rate so again our.

Roy W. Olivier: So again, our CAC LTV numbers there are very good. And that's another area of the business where I think we've done a nice job in the past few months of calibrating spend to maximize traffic that converts into sales pipeline. So, you know, I think we've made a lot of progress there. And I think that'll start to show up in the numbers as we get into the beginning of FY25.

Roy W. Olivier: CAC to LTV the numbers there are very good and that's another area of the business, where I think we.

Roy W. Olivier: You've done a nice job in the past few months of calibrating spend to maximize traffic that converts into sales pipeline. So.

Roy W. Olivier: You know I think I think we've got made a lot of progress there and I think that'll start to show up in the numbers as we get into the beginning of FY 'twenty five.

Allen Robert Klee: Okay, great. Thank you so much. Congratulations on the quarter.

Speaker Change: Okay, great. Thank you so much congrats on the quarter.

Allen Robert Klee: Yes.

Speaker Change: Thank you.

Operator: And this does conclude our Q&A session for today's conference. I'm happy to turn the floor back to Mr. Olivier for any additional or closing remarks.

Allen Robert Klee: And this does conclude our Q&A session for today's conference I'm happy to turn the floor back to Mr. Olivier for any additional or closing remarks.

Roy W. Olivier: Thank you, and thanks, everyone, for joining the call today. We will be participating in the Three-Part Advisor Ideas Conference in New York City on June 12th. Hope to see you there. Qualified investors that would like to attend or schedule a meeting should contact Three-Part Advisors, and we look forward to speaking with you again in September to discuss our full year and fourth quarter fiscal 2024 results. Have a great day.

Olivier: Thank you and thanks, everyone for joining on the call today, we will be participating in a three part advisors ideas conference in New York City on June 12th Hope to see you. There qualified investors that would like to attend or schedule a meeting should contact reported by our advisors and we look forward to speaking with you again in September to discuss our full year and fourth quarter.

Roy W. Olivier: For fiscal 2024 results have a great day.

Operator: This does conclude today's teleconference, ladies and gentlemen, and we thank you for your participation. You may now disconnect your lines.

Speaker Change: This does conclude today's teleconference, ladies and gentlemen, we thank you for your participation you may now disconnect your lines.

Operator: ?? ?? ?? ?? ?? ?? ?? ??

Operator: Hum.

Operator: [music].

Operator: Okay.

Operator: [music].

Operator: Okay.

Operator: [music].