Q1 2024 Sunlands Technology Group Earnings Call
Okay.
Operator: Ladies and gentlemen, thank you for standing by, and welcome to Sunlands' first quarter 2024 earnings conference call. At this time, all participants are in listen-only mode. Today's conference call is being recorded. I'll now turn the call over to your host today, Yuhua Sunlands IR representative. Please go ahead.
Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to Sutlej first quarter 'twenty 'twenty four earnings conference call.
Speaker Change: At this time all participants are in listen only mode. Today's conference call is being recorded.
Speaker Change: I'll now turn the call over to your host today equal Sundance IR Representative. Please go ahead.
Yuhua: Hello, everyone, and thank you for joining Sunland's fourth quarter 2024 earnings conference call. The company's financial and operating results were issued in our press release via Newswire services earlier today and are posted online. You can download the earnings press release and sign up for our distribution list by visiting our IR website.
Speaker Change: Hello, everyone and thank you for joining <unk> fourth quarter 'twenty 'twenty four earnings conference call the company's financial and operating results were issued in our press release Bad Newswire services earlier today and are posted online.
Speaker Change: You can download the earnings press release and sign up for our distribution list by visiting our IR website.
Yuhua: The participants on today's call will be our CEO, Mr. Tongbo Liu, and our Financial Director, Mr. Hangyu Li. Management will begin with prepared remarks, and the call will conclude with a Q&A session. Before I hand it over to management, I'd like to remind you of Sunland's Safe Harbor Statement in relation to today's call. Except for the historical information contained herein, certain of the matters discussed in this conference call are forward-looking statements.
Speaker Change: Participants on today's call will be our CEO, Mr. Tom <unk>, and our friend financial director Mr. Holly lead management will begin with prepared remarks, and the call will conclude with a Q&A session.
Yuhua: These statements are based on current trends, estimates, and projections, and therefore, you should not place any due reliance on them. Forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. For more information about the potential risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission. With that said, I will now turn the call over to our CEO, Hongbo Liu.
Speaker Change: Before I hand, it over to the management I'd like to remind you all found that safe Harbor statement in relation to today's call except for the historical information contained herein certain of the matters discussed in this conference call are forward looking statements.
Speaker Change: These statements are based on current trends estimates and projections and therefore, you should not place and do you realize on the.
Speaker Change: Forward looking statements.
Speaker Change: Both inherent risks and uncertainties and other factors.
Speaker Change: Factors could cause actual results to differ materially from those contained in any forward looking statement.
Speaker Change: For more information about the potential risks and uncertainties. Please refer to the company's filings with the Securities and Exchange Commission with that I will now turn the call over to our CEO Memorial.
Tongbo Liu: Thank you, Yuhua. Hello, everyone.
Speaker Change: Okay.
Speaker Change: Thank you Hello, everyone.
Speaker Change: We'll come to some than the first quarter it turns into a full comprehensive kit.
Tongbo Liu: Welcome to Sunland's first quarter 2024 conference. Prior to commencing, I would like to kindly remind all attendees that the financial information referenced in this release is presented on a continuing operation basis, and all figures are denominated in RMB unless otherwise indicated. [inaudible] by the European leaders of net revenue and net income for the countries that buy up the economy and Wanchang 2017 respectively. This marks our 12th consecutive quarter of perfectibility, underscoring our operational efficiency and commitment to shareholder value. With a strong focus on robust and durable expansion, we fostered our endeavors in health control by doing intensive digital acquisition.
Speaker Change: Prior to commencing I would like to kindly remind all attendees that the financial information referenced in this release are presented on a continuing operations basis and all fingers.
Speaker Change: Nominated are in RMB.
Speaker Change: It's bad.
Speaker Change: Okay.
Speaker Change: Yes.
Yes.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Uh huh.
Speaker Change: Right.
Speaker Change: And it was.
Speaker Change: We expect.
Speaker Change: Mark.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Unless of course, our operational efficiency and a commitment to shareholder value.
Speaker Change: With a strong book.
Speaker Change: Gotcha.
Speaker Change: I'll turn it over.
Speaker Change: Hum.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: You bet.
Operator: Ladies and gentlemen, please remain on the line; your conference will resume shortly. (inaudible) Presenters, please continue.
Speaker Change: Ladies and gentlemen, please remain on the line your conference will resume shortly.
Speaker Change: [noise] presenters please continue.
Speaker Change: Yeah.
Tongbo Liu: Additionally, our enrollment surged by 22.8% to a historical high of over 175,000, demonstrating enhanced proficiency in acquiring students. This improvement reflects our dedicated initiatives to attract new users and enhance user retention and engagement by refining our course offerings to meet diverse learning needs. Looking ahead, we remain optimistic about our long-term profitability. We endeavor to closely monitor and enhance student experience across all phases of learning, a fifth priority. Moving forward, we are dedicated to delivering exceptional services and products while exploring avenues for further business growth and operational efficiency improvement.
Speaker Change: Additionally, our enrollment surged by tuning coupon the EDA person.
Speaker Change: Historical high of over 175.
Speaker Change: Illustrating the enhancement in the hands of Purves for efficiency in acquiring students. This improvement reflects our dedicated the initiatives to it.
Speaker Change: To attract new users and enhanced user retention and engagement by refining of our course offerings to meet diverse needs.
Speaker Change: We remain optimistic about our long term profitability late in.
Speaker Change: We endeavor to closely monitor and enhance skills and the skills and experience across all phases of teaching than me.
Speaker Change: Okay.
Speaker Change: Going forward, we I did catch it who are dedicated to delivering exceptional services. Some of her box well exploring avenues for further business growth and the operational efficiency improvement.
Tongbo Liu: Now let's turn to the performance of each of our major course programs. Our post-sector programs now account for 14.3% of our total revenue, a testament to our strategic structural optimizations and in alignment with our latest investment return goals.
Speaker Change: Now, let's turn to the performance of each of the alcohol mix.
Speaker Change: Perfect.
Speaker Change: Our poster slipped our programs now comfortable 14 components third person goes out to the revenues.
Speaker Change: Testament to our strategic structural optimizations and alive and alignment with other latest the investment return goals.
Tongbo Liu: Given the structural makeup of educational attainment among the Chinese population, the universal access to compulsory education, and the prevailing demands of the job market, we are still convinced that programs are in demand, and we remain dedicated to providing premium courses to our in-progress students. In addition, we continue to pursue B2B's strategy to effectively leverage our deep-rooted expertise in this area. Surabasa's Plan for Industry Union will provide small and medium-sized organizations with comprehensive solutions, including extensive course content, authentic examination questions, and advanced teaching management tools to help them improve their teaching and content distribution abilities.
Speaker Change: Given the structural makeup of educational attainment with the Chinese operation.
Speaker Change: Universe, the universal access to compulsory education and is a prevailing demands of the digital market.
Speaker Change: Steel convinced these programs are in demand and we remain dedicated to providing premium courses scrubber info progressed filled it.
Speaker Change: In addition, we're continuing to pursue it will be strictly decisively leveraging other deep rooted.
Speaker Change: Expertise in this area.
Speaker Change: So we're all of a sudden plentiful associated with.
Speaker Change: They provide is more of the medium sized organizations with comprehensive solutions, including extensive course content.
Speaker Change: Clinton examination questions and other balance the teacher management tools to help them improve their teaching and content distribution abilities of our aim is to provide our partners with the boundless intuitive tools that attempts to lift that it improves the lending experience for their users.
Tongbo Liu: Our aim is to provide our partners with advanced, intuitive tools that can significantly improve the learning experience for their users and ultimately enhance the quality and efficiency across the industry. The sector, including professional certifications, professional skills, and interest programs, continues to be our primary growth engine, contributing 74.4% to the total revenue. Interest programs, in particular, have exhibited a 22.2% year-over-year growth. In this sector, our strategy remains unwavering to continuously expand our course offering, attract a broader audience through varied curriculum, enhance customer retention rates, and ultimately optimize the lifetime value of our users. This approach has proven successful, as evidenced by a 13.4% increase in new enrollments in our interest-based education programs, underscoring the effectiveness of our strategic initiatives.
Speaker Change: And ultimately enhance the quality and the efficiency of course the industry.
Speaker Change: The sector, including professional certifications professional skills and interested programs continue to be our primary growth engine control beauty 17 fault on the full person to the total revenue.
Speaker Change: Interest program in particular has it.
Speaker Change: Exhibited a tuning coupon two persons yoga Yoga goes English Victor our strategy remains on livery to continuously expand our course offerings attract a broader audience through varied Coca learn it.
<unk> customer retention rates and ultimately optimize the lifetime value of our users. It's up this approach has proven successful as evidenced by a searching tooth on the 4% increase in new enrollments in our interest based education program to this culture.
Speaker Change: Underscoring the effectiveness all above our strategic initiatives.
Tongbo Liu: Through ongoing practice, we have gained fresh insights into different age groups, shaping our approach to course design and service provision. For example, unlike younger individuals whose educational pursuits are often career-oriented or driven by external expectations, more mature learners seek learning experiences that enrich their lives, bring joy, and foster meaningful connections. The fundamental difference necessitates a substantial departure from traditional education and paradigms in both customer development and service delivery models. Simply migrating existing courses online does not suffice.
Speaker Change: Through ongoing practice, we have gained insights into different age groups shifting our approach to course design and the survey is perfect. For example, unlike a young easy button, but unlike a young younger in radios cause educational pursuits are often career oriented or driven by external extra.
Speaker Change: Our expectations more mature and then they are sick sake, none the experiences that enrich their lives, bringing joy and the soc or meaningful connections.
Speaker Change: The fundamental difference Mr. Nicholas necessitate a substantial departure from traditional education and paradigms in both customer and developments in our service delivery models.
Speaker Change: Migrating existing kohl's online that not a fire.
Speaker Change: So five suppliers instead, we muster each rotated into carefully aligning with aligned with the unique needs of this demographic to enhance and customize our offerings accordingly.
Tongbo Liu: Instead, we must intricately align with the unique needs of this demographic to enhance and customize our offerings accordingly. Moreover, the service delivery model should be adaptable and considerate of their physical and cognitive abilities, emphasizing the creation of a supportive and inclusive learning environment that encourages active participation and continuous engagement. We have consistently pushed the boundaries of our innovative curriculum and achieved notable milestones through industry integration. A prime example is our educational travel adventure project, launched in March 2023, which is well suited for the elderly.
Speaker Change: Mulder the service deliver model should it be adaptable and can see the rates of their physical and cognitive abilities emphasizing the creation will say, it's a positive then in calls they've lending environment that encourages active participant participation and the continuous engagement.
Speaker Change: We have consistently pushed the boundaries of our innovate innovative kuechler Amanda achieved multiple milestones so industry integration. A Prime example is our educational travel adventure projects announced in March them to these three which are well suited for the elderly.
Tongbo Liu: At the end of the first quarter of 2024, we have already crossed over 40 study tour routes. According to McKinsey's 2024 China Consumer Trends Report, senior citizens in first-tier cities have spending expectations for travel, marking this as a pertinent market segment. These consumers are not primarily driven by price when deciding which travel products to purchase. Instead, they seek diverse, high-quality, and unique travel experiences, making premium travel products particularly well-received. Setting ourselves apart from traditional tourist offerings, we seamlessly integrate components from our courses, such as the art of traditional Chinese painting, into every fabric of the journey, enriching the experience with culture, depth, and immersive learning opportunities. In the first three months of 2024 alone, revenue from educational travel adventure projects has already surpassed 65% of the earnings for the entire of 2003.
Speaker Change: The end of the first quarter afternoon, before we have already cross silver 14 E 40, <unk> Stadium statutory rules. According to Mckinsey has put it in there for China, China consumer trends.
Speaker Change: Reports senior citizens in first tier cities have had.
Speaker Change: But the expectations for travel that are noteworthy there.
Steady state of those who of the general General population Martin This is a burgeoning market segment.
Speaker Change: These consumers are not primarily driven by price when deciding which travel products to purchase the purchase instead this diverse high quality and a unique type of experiences.
Speaker Change: Making premium title products, particularly well received setting ourselves apart from traditional accelerates offerings with some lefty integrate components for all of our courses such as the art of traditional Chinese Chinese bidding into Liberty February call of that journey and enriching the experience with <unk>.
Speaker Change: Our culture of theft, and the immersive learning opportunities in those first dose three months. This afternoon, if all la revenue from Cushing archival adventure project has already surpassed the 15, 5% of the earnings.
Speaker Change: No Tyler Austin and three.
Tongbo Liu: In the future, we will expand our efforts into other areas to offer our elderly users a wider array of products, aiming to extend their customer lifecycle. Furthermore, as a company embracing cutting-edge artificial intelligence technology, we have steadily enhanced our integration of AI into our business operations. For example, will streamline the content creation process. Processes focused on increasing page views and refined multiple models to deliver personalized teaching. This led to a reduction in production time and significantly boosted the efficiency of our operational team.
Speaker Change: In the future.
Speaker Change: I N number of airports in other areas to offer our elderly users a wider array of products aiming to a ton aiming to extend their customer lifecycle.
Speaker Change: Furthermore, as a company in embracing cutting H I G official intelligence technology.
Speaker Change: We have steadily enhanced our integration of AI into their business operations.
Speaker Change: Example.
Speaker Change: Waves trim ninth content creation part per se.
Speaker Change: Of course, it is focused on increasing page views than the refined multiple models to Geneva personal neither teaching this led to a reduction in production time and some of it is in the Naples boosted the efficiency of our operational teams. We will continue to monitor for updates in large models and applied to our base.
Tongbo Liu: We will continue to monitor updates in large models and apply them to our business, ultimately enhancing our users' learning experience. However, while we have achieved significant milestones, it is essential to acknowledge that we also face challenges. Moving forward, we are dedicated to adjusting our strategies to navigate market uncertainties. Our focus will remain on delivering high-quality education, expanding our market presence, and prioritizing shareholder value. Thank you for your presence today. With that, I will turn the call over to our Financial Director, Hangyu, to run through our financials.
Speaker Change: These are the mentally enhancing our users than in than the experience.
Speaker Change: While we have achieved significant milestones it's essential to fill niches that we also faced challenges moving forward, we are dedicated to adjusting our strategies to navigate market uncertainties way.
Speaker Change: Our focus will remain on delivering high quality education, expanding our market presence and alright, well, Oregon prior already piling shareholder a shareholder value.
Speaker Change: Thank you for your presence today with that I will turn the call to cover financial director hungry to run through our financials.
Speaker Change: Okay.
Hangyu Li: Thank you, Sunbo. Hello, everyone.
Oh Wow.
Speaker Change: Please.
Hangyu Li: I'd like to introduce our total results. All figures are denominated in R&D unless explicitly specified otherwise. For the quarter, we achieved a net income of 112.7 million, with a net income margin of 21.5%. It was the 10th consecutive quarterly night net income margin of about 20%. The stable margins in recent quarters are due to our continued efforts to improve operational efficiencies and optimize our cost structure. However, our revenue declined year-over-year due to changes in our product mix.
Speaker Change: Resolved okay.
Speaker Change: Peter.
Speaker Change: The nominated arc.
Speaker Change: Alright fine otherwise.
Speaker Change: For the Qualcomm, we have achieved my income of 100 on Powerpoint seven minutes with Mike and home market of 21, 5%.
Speaker Change: Or what the tariff constructive cooperative.
Speaker Change: Marketing or one 8%.
Speaker Change: The favorable margin rate in the quarter auto through our continuous efforts to improve operational efficiencies and optimize our cost structure.
Speaker Change: Also our revenue decline year over year due to changes in our product mix.
Hangyu Li: The successful strategy of balanced, sustainable growth and profitability brought us cash operating inflows of $76.4 million in the quarter. At the end of the first quarter, the total balance of cash equivalent, restricted cash, and short-term investment totaled $983.2 million, an increase of 8.2% from the end of the previous year. Our healthy financial position gives us the confidence to face the challenges ahead. This will enable us to capitalize on emerging opportunities, strengthen our leadership position in the industry, and continue to create value for our shareholders. Now, let me walk you through some of our key final results for the first quarter of 2024.
The passport proxy of pilot.
Speaker Change: Kidney bulk rose Unprofitability Brooke Brooke.
Brooke: Brooke our cash operating inflow of 76 point format in the quarter.
Brooke: At the end of the fourth quarter, the total balance of cash cash equivalents restricted cash and short term.
Brooke: Investment.
Brooke: $983 2 million.
Brooke: The increase of eight 2% from the end of the previous.
Brooke: Yeah.
Brooke: Our healthy financial condition.
Speaker Change: Kafka to Facebook hydrogen.
Speaker Change: This will enable us to capitalize on emerging opportunities.
Speaker Change: Our leadership position in the industry and continue to create value for our shareholders.
Speaker Change: Now, let me walk you through some of our key financial about but first quarter of 'twenty 'twenty four.
Hangyu Li: All comparisons are year-over-year unless otherwise noted. For the first quarter of 2024, net revenues decreased by 7.7% to $523.2 million from $566.9 million in the first quarter of 2023. The decrease was primarily driven by the decline in gross earnings from post-secondary courses over the recent quarters, partially offset by the growth in revenues from sales of goods such as books and learning materials. Cost of revenues increased by 13.2%, to 77.2 million in the first quarter of 2024 from 68.2 million in the first quarter of 2023. The increase was primarily due to the growth in revenue from sales of goods.
Speaker Change: Comparisons are year over year, unless otherwise noted.
In the first quarter of 'twenty 'twenty four.
Revenue decreased by 7.2.
Speaker Change: Two $523 2 million from 556 9 million in the fourth quarter of 'twenty to 'twenty three.
Speaker Change: The decrease was primarily driven by the decline in gross billing from post secondary coffee over the recent quarter, partially offset by the growth in revenue from it.
Speaker Change: Okay books.
Speaker Change: Curious.
Speaker Change: Cost of revenues increased by 13, 2%.
Speaker Change: Two if I can point to many in the fourth quarter of 2020 for pumps.
Speaker Change: From 68 2 million in the fourth quarter of 'twenty or 'twenty three.
Speaker Change: The increase was primarily due to the growth in the cocoa Rockville from steel output.
Hangyu Li: Group profits decreased by 10.6% to $446.1 million in the first quarter of 2024 from $498.7 million in the first quarter of 2023. In the first quarter of 2024, operating expenses were $341.1 million, representing a 6.4% increase from $320.7 million in the first quarter of 2023. Sales and marketing expenses increased by 11.1% to 301.6 million in the first quarter of 2024 from 271.4 million in the first quarter of 2023. The increase was mainly due to the growth in spending on sales activities, including enhanced compensation for sales personnel, as well as increased spending on branding and marketing activities focusing on interest-caused offerings. General and administrative expenses decreased by 17.9 percent, to 32.6 million in the first quarter of 2024 from 39.6 million in the first quarter of 2023.
Gross profit decreased by 10, 6% to 446.1 in the fourth quarter of 'twenty 'twenty four from 498 points in the fourth quarter of 'twenty or 'twenty three.
Hangyu Li: The decrease was mainly due to the decline in rental expenses, as certain distances for all the states were partially terminated in 2023 before the expiration of these terms for cost savings. Product development expenses decreased by 27.6% to 7 million in the first quarter of 2024 from 9.7 minutes in the first quarter of 2023. The decrease was mainly due to decreased compensation expenses related to high counter-reflections by our product development personnel. Nan's income for the fourth quarter of 2024 was 112.7 million, as compared to 180.1 million in the fourth quarter of 2020. Basic and diluted night income per share was 16.44% in the first quarter of 2024.
Speaker Change: In the fourth quarter of 'twenty 'twenty four operating expenses were 341 1 million.
Speaker Change: Presenting.
Speaker Change: Perfect.
Speaker Change: From 327 million in the fourth quarter of 2023.
Speaker Change: So on the marketing expenses increased by 11, 1% to 301 6 million in the first quarter of 'twenty 'twenty four from 200.
Speaker Change: 1.4 minutes in the fourth cohort.
Speaker Change: Sorry.
Speaker Change: The increase was mainly due to the growth.
Speaker Change: Anthony.
Speaker Change: Active teeth.
Speaker Change: Routing enhanced compensation for sales personnel.
Speaker Change: Increased spending on branding and marketing activities focusing on interest cost is offering.
Speaker Change: General and administrative expenses decreased by 17, 9%.
Speaker Change: So a 32 6 million in the fourth quarter of 'twenty 'twenty four.
$39 6 million in the first quarter of 2023.
Speaker Change: The decrease was mainly due to the decline in rental expenses.
Speaker Change: Certainly.
Speaker Change: All the PE where poverty.
Speaker Change: 2023.
Speaker Change: Hi, Richard.
Speaker Change: Kurt for cost savings.
Speaker Change: Product development expenses decreased by 27, 6%.
Speaker Change: Two 7 million in the fourth quarter of 'twenty 'twenty four from nine 7 million in the first quarter of 2023.
The decrease was mainly due to the client conversations.
Speaker Change: Related to high cost of reduction of our product development personnel.
Net income for the fourth quarter of 2020 before was 112.7 million.
Speaker Change: As compared to 180 upon one minute in the first quarter of 2023.
Speaker Change: Basic and diluted income per share was <unk> 44 in the fourth cohort 'twenty 'twenty four.
Hangyu Li: As of March 31, 2024, the company had 803.5 million cash equivalents and restricted cash and 179.7 million of short-term investments, as compared to 766.4 million of cash, cash equivalents, and restricted cash and 142.1 million of short-term investments as of December 31, 2023. Additionally, as of March 31, 2024, the company had a deferred revenue balance of $1,044.9 million as compared to $1,113.9 million as Regarding the outlook for the second quarter, we expect net revenues to be between $480 million and $500 million, a year-over-year decrease of 5% to 8.8%. This outlook is based on the current market conditions and reflects the company's management's current and preliminary estimates of market operating conditions and customer demand, which are all subject to change.
Speaker Change: As of March refractory first 2024, the company has 800 and the three 5 million of cash.
Kathy we will on the restricted cash and 179 7 million of short term investment.
Speaker Change: As compared to 766.4 million of cash cash equivalents and at risk.
Speaker Change: Cash and $142 1 million of short term investments as of December 31, 23.
Speaker Change: Yeah.
Speaker Change: As of March 31st 2010, before the company had a deferred revenue balance.
Speaker Change: 1044, 9 million as compared to 1000 139 million as of December 31st 2023.
Speaker Change: Regarding the outlook for the second quarter.
Speaker Change: Net revenue to be between $418 million on our $500 million a year over year decrease of 5%.
Speaker Change: 288%.
Speaker Change: This outlook is based on the current market conditions and reflects the company's management's current and preliminary estimates of market operating conditions and customer demand, which are all subject to change.
Operator: With that, I'd like to open up the call to questions from Britain. Thank you. We will now begin the question and answer session. To ask a question, please press star 1, 1 on your telephone keypad.
Speaker Change: With that I'd like to open up the call to the question.
Speaker Change: Peter.
Peter: Thank you.
Operator: Thank you. We will now begin the question-and-answer session. To ask a question, please press star 1 1 on your telephone keypad. You will then hear an automated message advising that your hand is raised.
Speaker Change: We will now begin the question and answer session.
Operator: To withdraw your question, please press star 1 1 again. For the benefit of all participants on today's call, if you wish to ask a question to management in Chinese, please immediately repeat your question in English. Please stand by while we compile the Q&A roster. As a reminder, to ask a question, please press Star 11 on your telephone keypad. At this time, we're showing no further questions, so this will conclude our question and answer session. I'd now like to turn the conference back to Yuhua for any closing remarks.
Speaker Change: A question. Please press star one one on your telephone keypad.
Speaker Change: Danielle automated message advising yohan this race.
Speaker Change: To withdraw your question. Please press star one again for.
Speaker Change: For the benefit of all participants on today's call. If you wish to ask a question to management in Chinese. Please immediately repeat your question in English. Please standby, while we compile the Q&A roster.
Speaker Change: Yeah.
Speaker Change: Yeah.
Yeah.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: As a reminder to ask a question. Please press star one one on your telephone keypad.
Speaker Change: Okay.
Speaker Change: At this time, we're showing no further questions. So this will conclude our question and answer session I would now like to turn the conference back to <unk> for any closing remarks.
Yuhua: Once again, thank you everyone for joining today's call. We look forward to speaking with you again soon. Good day and good night.
Speaker Change: Once again, thank you everyone for joining today's call and we'll look forward to speaking with you again soon good day and Goodbye. Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.
Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change: Okay.
Speaker Change: Yes.
Okay.
Speaker Change: [music].
Speaker Change: Okay.