Q1 2024 OmniAb Inc Earnings Call and Business Update
Good afternoon, and welcome to <unk>, Inc. First quarter 'twenty 'twenty four financial results and business update conference call. At this time, all participants are in a listen only mode.
<unk> and answer session will follow the formal presentation.
As a reminder, this conference is being recorded.
Now, let's turn the call over to Kurt Gustafson, Yelp, Inc. Chief Financial Officer, you May begin thank you.
Thank you operator, and good afternoon, everyone. This is Kurt Gustafson, Chief Financial Officer, and Thank you all for joining our first quarter 2024 financial results Conference call.
Kurt A. Gustafson: There are slides to accompany today's remarks, and they're available in the investors section of our website at <unk> Dot com.
Kurt A. Gustafson: Before we begin I'd like to remind listeners that comments made during this call will include forward looking statements within the meaning of the federal Securities laws. These forward looking statements involve risks and uncertainties that could cause actual results to be materially different from any anticipated results. These forward looking statements are qualified by the cautionary statements contained in today's press release.
Kurt A. Gustafson: And our SEC filings.
Kurt A. Gustafson: Importantly, this conference call contains time sensitive information that is accurate only as of the date of this live broadcast today May 19 2024.
Kurt A. Gustafson: Except as required by law <unk> undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances. After the date of this call.
Kurt A. Gustafson: Joining me on the call today is Matt for on the Abbs, President and CEO during today's call, Matt and I will provide highlights on the company's operations partner and technology updates and our recent financial results.
Kurt A. Gustafson: At the conclusion of our prepared remarks, we'll open the call to questions with that I'll turn the call over to Matt. Thanks, Curt and good afternoon, everyone and thanks for joining us today on our first quarter call.
Matt: With the consecutive quarter showing growth across some key business metrics I'm proud of omni <unk> progress over the last 18 months, which put us on track for a successful quarter and positions our business and our pipeline very well for a strong year here in 2024.
Matt: Our performance during the first three months of the year reflect both the continued diversification of our partnership base and the expansion of our global presence.
Speaker Change: Yep team remains highly focused on our strategic plans for.
Speaker Change: We're creating greater visibility for our validated technologies and we're committed to driving innovation to create long term value for stakeholders.
Speaker Change: We're excited about the opportunities that lie ahead, and we're confident in our prospects for technology and business growth and progression in the coming years.
Matt: I'll quickly review our business metrics, starting here on slide number five.
Matt: We ended Q1 2024 with 80 active partners free.
Kurt A. Gustafson: Three new platform license agreements were signed during the quarter, including new agreements with a very well funded Boston based venture backed startup with immuno Biochem Corporation and with the University of Georgia.
Kurt A. Gustafson: We're committed to continued expansion of our diverse partnership base and as you can see here, we've nearly doubled our number of active partners net of attrition since 2018.
Kurt A. Gustafson: Our technology platform continues to become more visible and continues to expand.
Kurt A. Gustafson: And with our recent technology launches and plans for continued innovation. We believe we are well positioned to potentially accelerate this growth of partners.
Kurt A. Gustafson: We also saw some growth in active programs this quarter net of attrition with a number of active programs increasing to 327 as we show here on slide number six.
Kurt A. Gustafson: We experienced a slightly higher level of program attrition in Q1 as compared to recent quarters, all of which was in the discovery stage with one exception that I'll discuss in a moment.
Kurt A. Gustafson: The discovery stage attrition in Q1 was mostly attributed to a pipeline realignment by a single Asia based partner and given the net increase in programs in the quarter that was obviously positively counterbalanced by new program starts from other partners based here in the U S and in Europe.
Kurt A. Gustafson: We saw some really nice active program progression in the quarter as three program successfully transitioned from discovery to preclinical stage.
Kurt A. Gustafson: And I'll mention again that we define preclinical stage programs as ones that are confirmed to be in pre IND studies by our partners with the intention of entering human trials and at the end of Q1, we had a record 18 programs in preclinical and that's the most that we've ever had at <unk>.
Kurt A. Gustafson: Stage.
Kurt A. Gustafson: Yeah.
Kurt A. Gustafson: And as shown here on slide six we also saw one program transitioned from the phase one two the phase two category per disclosures by our partner.
Kurt A. Gustafson: Moving now to slide number seven as we mentioned frequently attrition is a natural part of our business and a drug discovery and development generally.
Kurt A. Gustafson: In 2023, we didnt have any attrition in our clinical stage programs, but in Q1, we saw the discontinuation of one program at Roche and that is reflected here on this slide.
Kurt A. Gustafson: Roche discontinue the phase one program as part of what they've termed a broader internal portfolio shaping initiatives there.
Kurt A. Gustafson: That they've discussed publicly in some level of detail. In addition, they disclosed that the decision wasn't related to safety efficacy or quality of the program.
Kurt A. Gustafson: Note that the program is one that was subject to a legacy fully paid license.
Kurt A. Gustafson: No impact at all on future milestones or royalties that are due to anya.
Kurt A. Gustafson: Yeah.
Kurt A. Gustafson: Based on discussions with our partners. We continue to expect four to six new entries into clinical development for novel Omnia derived antibody based programs this year.
Kurt A. Gustafson: Here on slide number eight I'll touch on a select partner updates and some upcoming catalysts for this year.
Kurt A. Gustafson: Immune event reported that global phase III clinical trials for <unk> in myasthenia gravis and thyroid eye disease are progressing.
Kurt A. Gustafson: And that they remain on track for topline data readout in the second half of 2024 for myasthenia gravis and in the first half of 2025 for thyroid eye disease.
Kurt A. Gustafson: They also expect initial period, one data from the phase <unk> clinical trial of vertical Nab in chronic inflammatory demyelinating polyneuropathy or civ Pea in the second or third quarter of this year.
Kurt A. Gustafson: And all of Biopharma and collaboration with immune event is already running a phase III study for <unk> in generalized myasthenia gravis in Japan and reported that a clinical trial notification was approved to initiate a phase III study in fibroid disease in Japan.
Kurt A. Gustafson: Moving to <unk> 14, O two immuno van announced plans to initiate four to five potentially registrational programs for IMTT 14 O. Two over there next fiscal year and also plans on initiating trials intend indications for <unk> 14 O two over the next two fiscal years.
Kurt A. Gustafson: At the recent ACR conference Merck presented preclinical data for M. 90, 140, which is a novel ADC, where they took all isomerase, one inhibitor payload targeting secam five expressing tumors.
Kurt A. Gustafson: And $91 40 demonstrated high potency strong antitumor activity and bystander effect in vitro and in mouse models.
Kurt A. Gustafson: A first in human phase one study to evaluate the safety Tolerability PK and preliminary clinical efficacy is in patients with advanced solid tumors is now ongoing.
Kurt A. Gustafson: Okay.
Kurt A. Gustafson: And lastly, genmab disclosed that they expect to announce ACA. Some lab phase II data in second line non small cell lung cancer in the first half of the year.
Kurt A. Gustafson: And data are now expected at <unk> and and we like many others, who are focused on the oncology space are really looking forward to that update and data.
Kurt A. Gustafson: And that has also already disclosed plans to initiate a global phase III study of axon lab in second line non small cell lung cancer later this year.
Kurt A. Gustafson: The <unk> clinical meeting starts at the end of the month and will run through June the fourth here.
Kurt A. Gustafson: Here on slide number nine you can see some of the presentations that are planned by our partners relating to new clinical data for Omnia derived programs.
Kurt A. Gustafson: I know too that this slide does not include all of the presentations by our partners at <unk>, but we've listed the ones that we feel are the most worth highlighting for you.
Kurt A. Gustafson: Yeah.
Kurt A. Gustafson: And on my last slide here Slide number 10.
Kurt A. Gustafson: I'd like to highlight a few upcoming scientific presentations by our team.
Kurt A. Gustafson: We're committed to creating greater visibility for our differentiated technology platform and highlighting innovations and new workflow enhancements that benefit our business and create value for stakeholders.
Kurt A. Gustafson: With an expanded business development presence, we're actively involved in more scientific conferences now than ever before.
Kurt A. Gustafson: Next week, we'll be at the pegs protein and antibody engineering summit in Boston, where Bob churn will present, new data on methods to facilitate rapid and efficient discovery of bi specific antibodies leveraging the biological intelligence of our engineered transgenic animals, the deep screening capabilities of our exploration.
Kurt A. Gustafson: Platform and the machine learning and AI and our omni deep offering.
Kurt A. Gustafson: And you also see here other conferences and presentations that we have coming up in the next eight weeks or so at the antibody engineering and Therapeutics conference in London, and the World ADC Asia Conference in South Korea.
Kurt A. Gustafson: I also want to mention a recent peer reviewed publication by our scientists related to chicken derived V. H H antibodies in the journal of Immunology, which came out in digital form very recently and creates further visibility for our omni Dab technology that we launched in Q4 of last year.
Kurt A. Gustafson: My dad is attracting new partners and it's opening new market opportunities for us and it is currently in use by multiple industry and academic partners.
Kurt A. Gustafson: Before I hand, the call back over to Kurt I want to say that with the successful establishment of omni app as a standalone entity and with a positive growth outlook, we remain on track to deliver on our goals and leverage the efficiencies of our prior investments in the business.
Kurt A. Gustafson: As a company we're committed to addressing the most critical challenges of antibody based drug discovery and plan to continue to enhance our technology offerings and we're excited to do that within our efficient and highly scalable business model.
Kurt A. Gustafson: And with that let me turn the call back over to Kurt for a discussion of our first quarter financial results Kurt.
Kurt A. Gustafson: Matt.
Kurt A. Gustafson: I just have a couple of slides on our financials.
Kurt A. Gustafson: So starting on slide 12, we've got a summary of our financial performance in the first quarter of 2024.
Kurt A. Gustafson: Total revenue for the fourth for the first quarter was $3 8 million compared to $16 9 million in the prior year quarter. The decrease was primarily due to the recognition of the tech volley EU launch milestone of $10 million that was recorded in the first quarter of 2023.
Kurt A. Gustafson: Service revenue was lower primarily related to the completion of our discovery work on certain ion channel programs.
Kurt A. Gustafson: First quarter revenue was consistent with our expectations and you'll recall that on our Q4 earnings call. I stated that we were projecting milestone payments would be weighted towards the second half of the year based on information that we have received from partners in their public statements.
Kurt A. Gustafson: This is still our expectation.
Kurt A. Gustafson: Turning to operating expense or R&D expense for the first quarter was $14 6 million compared to $13 8 million in the prior year quarter with the increase primarily due to higher personnel costs.
Kurt A. Gustafson: On the G&A side expenses were similar to last year coming in at $8 3 million.
Kurt A. Gustafson: Our operating expenses are also tracking in line with our expectations and we still expect operating expenses in 2024 to be approximately the same as in 2023 as we are now fully staffed and resource to leverage the future growth of the business.
Kurt A. Gustafson: One additional comment about the tax rate going forward, our deferred tax liabilities are no longer expected to fully cover our deferred tax assets in the future. So.
Kurt A. Gustafson: We had to establish a valuation allowance and this caused our effective tax rate to drop in general we now expect our effective tax rate to be in the low to mid teens going forward, but this could fluctuate from quarter to quarter based on the timing of certain discrete items.
Kurt A. Gustafson: The net loss for the first quarter was $19 million or <unk> 19 per share versus a net loss of $6 1 million or <unk> <unk> per share in the prior year period.
Kurt A. Gustafson: Turning to slide 13, we ended the first quarter of 2024 with $69 million in cash.
Kurt A. Gustafson: As we said on our Q4 earnings call. We expected that Q1 would be our largest burn quarter. This year due to the timing of milestones and certain compensation cycle items and this played out as we had expected for the full year, we reaffirm our guidance for cash use to be relatively similar to the cash used in 2023.
Kurt A. Gustafson: When you exclude the $35 million Tech Bally milestone that was received last year and.
Kurt A. Gustafson: And we still expect that our cash.
Kurt A. Gustafson: Balance and the cash from operations should provide sufficient capital to fund the operations for the foreseeable future.
Speaker Change: And with that I'd like to open the call for questions operator.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the one on your Touchtone phone you will hear a problem that you had has been raised shooed away should decline from the polling question. Please press star followed by chance and.
Speaker Change: And if you are using a speaker phone please lift the handset before pressing any case.
Speaker Change: First question comes from Stephen Willey of Stifel. Please go ahead.
Stephen Douglas Willey: Hi, Good evening guys, it's totally on for Steve. Thank you for taking my question and congrats on the progress.
Stephen Douglas Willey: Before I proceed can you guys hear me okay.
Stephen Douglas Willey: Yes, we can hear you okay great.
Stephen Douglas Willey: So.
Speaker Change: Yeah, Congrats on the progress and now given that there are multiple.
Speaker Change: Different programs across there you see stages right. So can you. Please.
Speaker Change: No additional comment on what proportion of those.
Speaker Change: It's actually includes downstream participation under Ryan speed. That's my question number one and question number two I also mentioned about the potential four to six new programs entering the clinic. This year is there any like what proportion of those programs are specific to which part.
Speaker Change: For our platform.
Speaker Change: If potential can you can you provide additional color on that please thank you.
Speaker Change: Yeah. Thanks.
Speaker Change: I'll, maybe make a couple of comments and then and then Curt can fill in anything that I Miss.
Speaker Change: In terms of our programs that have downstream economics.
Speaker Change: Of our 327 active programs had partners are actively investing in and progressing through discovery and development really only a very small portion about 2% don't have downstream.
Curt: Economics and participation to two arm, yes, those that that are about 2% of those 327 of our legacy licenses that we are old licenses that we inherited where partners essentially had a fully paid license to a predecessor company that we acquired so.
Curt: That's I think probably gives you the color you need there in terms of the four to six new programs that are entering clinical trials. This year. We're.
Curt: We're actually excited about though some are getting very close to the clinic. We expect a couple of those to be omni chicken derived one with a large multinational player.
Curt: And the others are will likely be a mix of our source technologies or other source technologies. So hopefully that helps you.
Speaker Change: Yeah. Thank you very much.
Speaker Change: Thank you.
Speaker Change: Thank you. The next question comes from speak we got Deborah <unk> from <unk> Securities. Please go ahead.
Deborah: Hey, guys. This is michele thanks.
Deborah: Thanks for taking our questions I'm all for Cooper.
Michele: So I know you don't provide.
Michele: In terms for like specific box machine, but just want to get a sense of how the shrink. The lead times are for example, you signed a deal with the University of Georgia, and another one with the startup of a biotech company to a halt in terms of economics. How these deals are different.
Speaker Change: Provide any color that would be great and then I have a follow up.
Speaker Change: Yeah, So I think in terms of.
Speaker Change: The way most deals start off they are they all kind of start off at the same term sheet and get negotiated from there. So it's all the terms end up being slightly different but.
Speaker Change: They are in the same ballpark and we've provided some guidance in the past about those.
Speaker Change: What those look like I will say, though that that frequently deals with <unk>.
Speaker Change: Academic institutions are structured slight slightly different because for the most part these institutions are not going to take something all the way through clinical.
Speaker Change: Clinical development and launch them and so these deals the way. The economics are primarily structured is that we would receive kind of a percentage of whatever they would eventually get when they either sell the asset or license it out.
Speaker Change: And.
Speaker Change: Frequently that percentage may vary depending on how far they took the asset right if they license it out and.
Speaker Change: In preclinical versus phase one versus phase two the that that percentage could sometimes vary so I'd say for our commercial companies. You know there is some variation, but but it's it's not hugely different and with the academic institutions just the basic structure of the deal is.
Speaker Change: A little bit different so I don't know, Matt if you have anything to add on that one no I think you covered it well alright.
Matt: Okay, and then in terms of interest from external partners.
Matt: Can you provide any color on which platforms are seeing interest increased interest in the past quarter.
Speaker Change: Typically the newly launched on the Ami that thank you.
Matt: Yeah, Great question, and we because of our I'll say clarity of mission and commitment to continued innovation.
Speaker Change: Paired with the.
Speaker Change: The level of validation of our platforms. Our inbound interest is is the highest its ever been in terms of partners approaching US. We've also increased our share of voice expanded our business development team.
Speaker Change: Globally. So that's also I think contributing to increased interest in the platform.
Speaker Change: Our army Dab launch has been going very well in terms of.
Speaker Change: Leveraging and deploying a new technology.
Speaker Change: Since we announced the launch of it at the <unk> Conference late last year.
Speaker Change: As I said in prepared remarks, we have multiple industry partners as well as academic partners leveraging the platform now.
Speaker Change: And we're actually really excited about it for a lot of reasons wanted it opens up new opportunities in new markets for us for.
Speaker Change: For our partners they are attracted to.
Speaker Change: The the nature of domain antibodies and what that means in terms of opening up alternate routes of administration.
Speaker Change: Better penetration fast about fast tunable clearance.
Speaker Change: Ask them through the blood brain barrier those sorts of things. So that's that's attracting a lot of attention from new as well as the existing partners and it also is opening up potential in new markets like imaging and diagnostics and <unk> and the like so yeah.
Speaker Change: We're excited about it and I think it's.
Speaker Change: It's a great time for four new technologies and also these discussions also continue to inform how we innovate for the future as well.
Speaker Change: Great. Thanks for taking my questions and congrats on the progress.
Speaker Change: Thanks Michelle.
Speaker Change: Thank you. The next question comes from Matt Hewitt from Craig Hallum. Please go ahead.
Speaker Change: Hi, guys. This is Jack on for Matt.
Jack: The last quarter of your it seems like others in the industry were struggling to win new business, just given the challenging environment, but you guys were not could you just provide us with some color from what you are going through.
Jack: Thanks.
Speaker Change: Yeah. Thanks, Jackie it sounded like he might have got cut off there a little bit at the end but.
Speaker Change: All I'll say look the you had the last couple of years I think it's obviously been well documented 2022 and 2023.
Jack: Sure.
Jack: Ah periods, where financing was difficult for a lot of biotech companies, where I'll say partners, both large and small.
Jack: Sure.
Jack: Exercising more cautious pipeline spending.
Jack: <unk> programs and that sort of thing across the industry.
Jack: That said if you look at our metrics all net of attrition.
Jack: We were able to show really nice growth in terms of new programs and new partners.
Jack: And I think that really speaks to the.
Jack: The technology that we offer partners our clarity of purpose in our model in.
Jack: In terms of collaborating with them.
Jack: And in those kinds of times like the last couple of years I think partners really do look to.
Jack: Validated technologies and stable and established partners as well as those with a commitment to innovation and meeting their needs.
Jack: To partner, So I think thats, a large part of it I also give a lot of credit to our team.
Jack: Who really have a very partner first mentality in terms of how we collaborate with our with our partners and I think that's driving it as well so now with.
Jack: At the end of last year and early this year with more funding coming into biotech.
Jack: It has the potential to create.
Jack: <unk> for the industry generally.
Jack: But we feel really great about the business that we're running and the technology that we offer to partners.
Speaker Change: That's helpful I'll jump back in the queue. Thanks.
Speaker Change: Thanks.
Speaker Change: Thank you. The next question comes from Michael <unk> from Leerink Partners. Please go ahead.
Michael: Hi, good afternoon, everyone.
Michael: I guess Michael on for.
Michael: My first question, I guess, I'm still a little bit with I.
Michael: I guess you mentioned with you.
Michael: Discovery pipeline that one partner in.
Michael: Asia, we're doing cancellations offset by U S and Europe, both kind of curious if you have any perspective on that.
Michael: The health of the various biotech sector geographically and I guess, what your exposure is to some of the geographies.
Speaker Change: Yeah, Michael Thanks.
Michael: We did see in Q1.
Michael: As I mentioned in prepared remarks that we what we saw and really see as kind of a one time spike in attrition really related to a single partner in Asia, who was realigning their pipeline.
Speaker Change: Yeah, and trimming discovery assets.
Jack: I will say that the new program starts are off to a great pace. We report our numbers net of attrition.
Jack: We see this more as like a one partner item I wouldn't see anything that is more related to broader geography or anything like that.
Jack: We obviously now have expanded our business development team.
Jack: And continue to negotiate new contracts and add new partners as we did in Q1, I don't know Kurt anything you'd want to add to that.
Kurt A. Gustafson: I mean, I don't think that there's anything from a geography standpoint that necessarily that we're seeing I think.
Kurt A. Gustafson: You said, Matt at the end of the day innovative technology is what we hope wins and so far it looks like its winning.
Kurt A. Gustafson: Okay, Great and then I had another question I guess related to the buyer secure a bill that's being proposed in Congress.
Jack: Believe Wuxi is one of the partners.
Jack: <unk> offers on the rats as a service I was curious if you have any early thoughts on what bio secure passage might do for the business.
Speaker Change: Yeah, Michael So yes E <unk>.
Jack: And I'll be specific it was wuxi biologics they were a very early user of our omni rat and really only omni rat.
Jack: Via a legacy deal with a predecessor company that we acquired right. So.
Jack: And they have I think a very limited number of of even active programs ongoing historically, but the legislation.
Jack: That's being debated in Congress is not expected to really have any significant or direct impact on our business.
Jack: That said, obviously, it's gotten a lot of coverage.
Jack: Just given the spot that Wuxi holds in the greater biotech ecosystem, but we don't see it having any impact on any programs that we see as value drivers are really don't see it having any significant impact on our business at all.
Speaker Change: Great. Thank you very much.
Speaker Change: Thanks, Michael.
Speaker Change: Thank you, ladies and gentlemen, as a reminder, should you have any questions. Please press star followed by one.
Speaker Change: Next question comes from Jacqueline Chiesa from Cowen. Please go ahead.
Jacqueline Chiesa: Hi, This is Jacqueline Keith on for Steven MA. Thank so much for taking the questions on the new licenses can you give us some more color on the therapeutic interest or program size expected from these companies.
Jacqueline Chiesa: Then what is the mix regarding platform use and do you see that shifting its army Dab continues to gain more traction.
Speaker Change: Yeah Jacqueline thanks. Thanks for the question, yes in terms of the new partners that were added in Q1.
Speaker Change: Immuno Biochem is a really interesting company there are alumna of the Johnson <unk> Johnson J labs.
Speaker Change: Incubator headquartered up in Toronto, and Theyre focused on oncology and immuno oncology specifically in the micro tumor environment. So our technologies I think are really well matched to their areas of interest.
Speaker Change: We'll obviously be cheering them on and are cheering them on the.
Speaker Change: The University of Georgia through their innovation Gateway incubator.
Speaker Change: Our new partner as well and that is a partnership that is structured with a revenue share model is as Curt was describing and they've got a really interesting history not only in.
Speaker Change: Innovations and around infectious diseases, but also in oncology as well so that is a.
Speaker Change: A partner we're excited now to have onboard in and to be collaborating with and then the last partner Theres not much I can say about them. There. They are very well funded Boston based stealth venture backed startup.
Speaker Change: I guess, all I can say from our perspective, there are proven team, who know our technology and our team well, but that's probably all I can say at this point I expect there'll be.
Speaker Change: Talking more publicly in the future.
Speaker Change: Great. Thank you I appreciate it and then are there any new updates or releases on omni deep. We may have missed or I can look forward to in the coming quarters and have you seen any increased interest in the platform and how has customer feedback been from users.
Speaker Change: Yeah, No great question Jacqueline.
Speaker Change: In the near term I direct you to the presentation next week at pegs, Bob Chan.
Speaker Change: We'll be presenting data around.
Bob Chen: Oh really marrying the biological intelligence of our transgenic animals, and our high throughput single B cell screening.
Speaker Change: Capabilities and technology with exploration with our omni platform and really our omni deep platform is a suite of silicone AI and machine learning tools that are woven throughout our technology stack and really are the things that our partners are valuing in it is the ability to marry it with high quality.
Bob Chen: So the input data from our transgenic animals and the hits that can be generated.
Bob Chen: With exploration pairing that with.
Bob Chen: Variational encoder or via E. Deep learning models that we've developed to then suggest new hits.
Bob Chen: And then also leveraging in silica develop ability filters and things like that so we are leveraging omni deepest as part of our offering for our partners.
Bob Chen: A number of big pharma partners, who are leveraging it as well as.
Bob Chen: Collaborations with academics and others so.
Speaker Change: Since launching omni deep as a brand last may so really just almost exactly a year ago.
Speaker Change: The reception to that has been really strong as well, we've obviously been in this space for quite a long time, meaning.
Speaker Change: Leaning into leveraging AI and machine learning along with our other technologies for many years.
Speaker Change: Great. Thank you I appreciate the questions.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Thank you at this time, we have no further questions I will turn the call back over to the presenters.
Speaker Change: Great.
Speaker Change: Thank you all for joining our call today, we look forward to keeping you updated as the year progresses and as the business progresses, we'll be out on the road quite a bit here over the next.
Speaker Change: A few months at a number of conferences and look forward to keeping you updated thanks again for joining and have a great day.
Speaker Change: Ladies and gentlemen. This concludes your conference for today, we thank you for participating and we ask that you. Please disconnect your lines.
Speaker Change: Yeah.