Q3 2024 IonQ Inc Earnings Call
Greetings and welcome to IHU's third quarter 2021 earnings conference call.
At this time, all participants are on a listen-only mode.
A question and answer session will follow the formal presentation. If anyone's required operator assistance during the conference, please press star zero on your telephone keypad.
Speaker Change: As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jordan Shapiro. Thank you, you may begin.
[inaudible]
Jordan Shapiro: Good afternoon everyone and welcome to IronQ's third quarter, 2024 earnings call. My name is Jordan Shapiro and I'm the Vice President of Financial Planning and Analysis and Head of Investor Relations here at IronQ.
Speaker Change: I am pleased to be joined on today's call by Peter Chapman, INQ's President and Chief Executive Officer, Thomas Kramer, our Chief Financial Officer, and Dr. Dean Kastman, our Senior Vice President of Engineering and Technology.
Speaker Change: By now, everyone should have access to the company's third quarter 2024 earnings press release issued this afternoon, which is available on the investor relations section of our website at investors.inq.com.
Speaker Change: Please note that on today's call, management will refer to adjusted EBITDA, which is a non-GAAP financial measure.
Speaker Change: While the company believes this non-GAAP financial measure provides useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.
Speaker Change: You are directed to our press release for a reconciliation of adjusted EBITDA to its closest comparable gap measure.
Speaker Change: During the call, we will discuss our business outlook and make forward-looking statements. These comments are based on our beliefs as of today. Actual events or results could differ materially from the outlook and other forward-looking statements due to a number of risks and uncertainties, including those mentioned in our 10-Q filing with the SEC this week.
Speaker Change: We undertake no obligation to revise any statements to reflect changes that occur after this call, except as required by law.
Speaker Change: Now, I will turn it over to Peter Chapman, President and CEO of iNQ. Peter?
Peter Chapman: Thanks, Jordan, and thank you to everyone for joining today's earnings call.
Speaker Change: We have a lot to talk about, so let's dive in.
Peter Chapman: On the financial front, we are leading the industry with our commercial trajectory.
Speaker Change: In the third quarter, we exceeded our expected range on revenue, raising our annual revenue guidance, and brought in $63.5 million of new contract bookings.
Speaker Change: We are making game-changing announcements on the development of quantum applications with AstraZeneca and Ansys.
Speaker Change: We have solidified our push into quantum networking via our recent contracts less than a year after announcing our networking initiative.
Speaker Change: And we are sharing the news of our acquisition of Cubatec, a leader in the quantum networking industry.
Speaker Change: What's more, we will share some details of our rapidly developing technical progress and the manufacturing partnerships that are driving it.
Speaker Change: So in more detail, we once again exceeded the high end of our revenue range for the quarter, delivering 12.4 million dollars in recognized revenue compared to our range of 9 to 12 million dollars for the quarter.
Speaker Change: This also represents INQ more than doubling our third quarter revenue year over year.
Speaker Change: With that in mind, we are raising our revenue guidance for the full year 2024 and fourth quarter to a range of $38.5 million and $42.5 million.
Speaker Change: We announced a new $54.5 million contract with our existing customer, the United States Air Force Research Lab.
Speaker Change: as well as a $9 million renewal with the University of Maryland.
Speaker Change: This brings I&Q year-to-date bookings for 2024 to $72.8 million, within close range of our target guidance for the year of $75 million to $95 million.
Speaker Change: Given our sales progress to date, we now believe that we will come in closer to the high end of the bookings guidance range.
Speaker Change: And, of course, our booking success will set us up for continued success next year in growing our revenue.
Speaker Change: INQ has exceeded its original bookings targets for each of the past three years since we have been publicly traded. Raising or beating our bookings or revenue expectations
Speaker Change: 12 times out of our 13 earnings calls, including today.
Speaker Change: Meanwhile, we are on track to roughly double the company's recognized revenue for the third year in a row.
Speaker Change: Our annual revenue has exceeded the high end of our guidance range every year.
Speaker Change: In short, one can no longer ignore the scale of I&Q's commercial success. The investment thesis for I&Q is our potential for high growth, and we keep delivering on that promise.
Speaker Change: Thomas will discuss our financials in more depth.
Speaker Change: Everyone, investors and customers alike, want to know when previously impossible tasks can be addressed by quantum applications.
Speaker Change: The answer is that the convergence of powerful enough quantum computers.
Speaker Change: a matching application, and ability to manufacture the hardware at scale.
Speaker Change: In the quantum world, there are two camps or schools of thought on this topic.
Speaker Change: OneKamp believes you need near perfection before value can be unlocked.
Speaker Change: The naysayers belong to this camp.
Speaker Change: The other camp, which INQ and others belong to, believe today's early noisy quantum computers.
Speaker Change: and others can provide value even before they are perfected.
Speaker Change: And if we are right, it gives us a significant advantage by generating early, meaningful cash collection as we work towards perfection.
Speaker Change: About 18 months ago, I challenged our teams to answer a critical question.
Speaker Change: I told them I don't care about theoretical algorithms with limited practical applicability. I don't care about the academic argument about quantum supremacy.
Speaker Change: Instead, I asked them, what are the applications that have the potential to disrupt multi-billion dollar industries?
Speaker Change: Thank you for your attention.
Speaker Change: The team has since identified several application areas where we believe commercial value will be first realized and aligned with our next generation hardware and I&Q's production capability.
Speaker Change: We then reached out to industry partners to understand the value of these applications to their respective industries.
Speaker Change: Today marks a seminal moment in the quantum industry as we announce the first two application areas.
Speaker Change: Biopharmaceutical Drug Discovery and Computer-Aided Simulations for the Engineering and Manufacturing Industries.
Speaker Change: In the global biopharmaceutical industry, I am excited to announce the creation of a new quantum application development center
Speaker Change: in collaboration with AstraZeneca.
Speaker Change: I and Q will be leveraging the power of our quantum experts.
Speaker Change: and AstraZeneca's world-class scientists to develop applications in their Innovation BioVenture Hub in Gothenburg, Sweden.
Speaker Change: In the computer-aided engineering industry, INQ has joined forces with ANSYS.
Speaker Change: To accelerate simulation, expand high-fidelity design exploration, and reduce product development timelines, enabling faster market entry for more innovative products.
Speaker Change: The partnership is aimed at making simulation accessible to both quantum experts and non-experts by allowing seamless integration between ANSYS software and IonCube.
Speaker Change: Computers.
Speaker Change: To reach our aggressive sales goals, we have always planned on growing application revenue.
Speaker Change: We expect these applications to drive demand for new systems in production, but also for us to share in the up to $2 trillion economic value that McKinsey Projects will be unlocked by 2035.
Speaker Change: We've reached an incredibly impactful point.
Speaker Change: and we could not be more excited to partner with AstraZeneca and ANSYS to bring production-grade quantum applications to their respective industries.
Speaker Change: I can't tell you how much personally I am excited about these applications.
Speaker Change: Now switching our focus to quantum networking.
Speaker Change: We believe that IoQ is the only quantum computing company that has an inherent advantage in the quantum networking market, contributing to our early leadership.
Speaker Change: Specifically, we have always relied upon networking as part of our architecture to scale our quantum computers.
Speaker Change: Quantum networking and quantum computing for IoQ are highly synergistic.
Speaker Change: Our recent wins of a $54.5 million contract with AFRL and our $5.7 million contract with the Applied Research Laboratory for Intelligence and Security, or ARLIS, are examples of our quantum networking investments paying off.
Speaker Change: At more than $60 million, we believe these two sales alone have catapulted IoQ to become a leading player in the quantum networking industry.
Speaker Change: To expand on that leadership, today we are excited to announce that we have signed a definitive agreement to acquire Cubitec.
Speaker Change: a leading Vista, California based quantum networking company.
Speaker Change: The combination of Qubitec and I&Q will allow us to continue our momentum in quantum networking by the addition of Qubitec's 118 U.S. and international granted patents.
Speaker Change: I expect that the quantum networking products
Speaker Change: will continue to strongly drive sales and to be the first product group that is cash flow positive.
Speaker Change: Quantum networking is a large and rapidly growing opportunity, with McKinsey estimating that quantum communication will become a 36 billion dollar market by 2040.
Speaker Change: Quantum networking, like classical networking hardware, is also expected to require several orders of magnitude more physical hardware than quantum computing to build the infrastructure for the quantum Internet.
Speaker Change: This is another element of the networking market where I&Q is particularly well-suited given the investments we have made over the past years to scale up our production manufacturing capabilities.
Speaker Change: The I&Q technical team also demonstrated ion-to-ion entanglement, the second of four significant milestones required to develop photonic interconnects.
Speaker Change: and significantly scale our system capacity.
Speaker Change: While we are thrilled with our technical progress in quantum networking, we're even more thrilled to join forces with Cubatech and leverage their quantum networking expertise.
Speaker Change: Thank you very much.
Speaker Change: Lastly, on the technology front, we are happy to announce two new agreements for critical components of future systems, starting with I&Q Tempo.
Speaker Change: Number one, we announced a partnership with NKT Photonics, a subsidiary of Hamamatsu Photonics, to develop next-generation laser systems for our trapped ion computers and networking equipment.
Speaker Change: The arrangement will begin with NKT Photonics developing and delivering three innovative prototype optical subsystems to us in 2025, designed to improve the performance, size, weight, and power of our upcoming data center-ready quantum computers.
Speaker Change: and others.
Speaker Change: Number two, today I am also pleased to announce a new partnership with IMEC, a world-renowned innovation hub in nano electronics and digital technologies, to develop photonic integrated circuits and chip scale ion trap technology.
Speaker Change: With these groundbreaking technology, I&Q aims to reduce overall hardware system size and cost, increase qubit count, and improve system performance and scale.
Speaker Change: The developments of this quarter are nothing short of groundbreaking.
Speaker Change: and position INQ to be the preeminent player in the quantum industry in the near term and for many years to come.
Speaker Change: Many of you already know IoQ as a leading quantum computing company.
Speaker Change: With today's announcements, we believe that we are now the leading company at the intersection of quantum computing and networking.
Speaker Change: And in the future, you will likely also know us as a software application company.
Speaker Change: Our commercial track record has launched IMQ towards the rarefied echelon of rapidly growing young technology companies.
Speaker Change: by achieving nine figures and bookings in record time.
Thomas Kramer: And with that, I'd like to turn the call over to Thomas.
Thomas Kramer: Thank you, Peter. It has truly been an exciting quarter on the applications and commercial front and our financials are no exception. Let's walk through this quarter's financial results in more detail.
Speaker Change: As Peter mentioned, we had a strong revenue quarter, recognizing $12.4 million, which is above the high end of the range we previously provided.
Speaker Change: This overperformance was primarily due to our ability to make more progress than previously anticipated on some of our contracts that used percentage of completion revenue recognition.
Speaker Change: We also booked $63.5 million of sales in the third quarter.
Speaker Change: As we have mentioned in prior earnings calls, we anticipate lumpiness in our bookings, since it is difficult to predict quarter-to-quarter, or even in some cases year-to-year, exactly when a particular sale will materialize.
Speaker Change: We remain confident in our bookings target for the year.
Speaker Change: Moving down the income statement, our total operating costs and expenses for the third quarter were $65.5 million, up 36% from $48.3 million in the prior year period, but within our plan for the year. To break this down further,
Speaker Change: Our research and development costs for the third quarter were $33.2 million, up 35% from $24.6 million in the prior year period.
Speaker Change: Recall that we are investing heavily in R&D and growing our R&D headcount to support our roadmap and customer commitments.
Speaker Change: Our sales and marketing costs in the third quarter were $6.6 million, up 31% from $5 million in the prior year period. This increase was due to our growing both our marketing and our sales teams as we continue investing into our commercial efforts.
Speaker Change: Our general and administrative costs in the third quarter were $14.3 million, up 3% from $13.9 million in the prior period. These increases were primarily driven by an increase in payroll-related expenses.
Speaker Change: All of this resulted in a net loss of $52.5 million in the third quarter, compared to $44.8 million in the prior year period.
Speaker Change: Accounting for warrants can be confusing, so we've always pointed out the impact they have on our results.
Speaker Change: This Q3 loss includes a non-cash loss of $3.9 million for the third quarter related to the fair value of our warrant liabilities.
Speaker Change: These results also include growth in stock-based compensation expense related to our headcount growth which was 24.6 million dollars for the third quarter.
Speaker Change: compared to 17 million dollars for the prior year period.
Speaker Change: We saw an adjusted EBITDA loss for the third quarter of $23.7 million compared to a $22.4 million loss in the prior period.
Speaker Change: We continue to project an adjusted EBITDA loss for the year of $110.5 million.
Speaker Change: Turning now to our balance sheet. Cash, cash equivalents, and investment as of September 30th, 2024 were $382.8 million. We continue to believe this cash position is the strongest of any publicly traded company focused on full stack computing.
Speaker Change: Importantly, while we have increased INQ's run rate in recent years, we are offsetting this by beginning to collect large payments from INQ's customers, including those who have purchased systems.
Speaker Change: Our run rate increases are largely related to employee costs, as we have worked rapidly to bring the best quantum talent to INQ.
Speaker Change: It is also worth mentioning that a significant portion of our investment in setting up manufacturing is now behind us.
Speaker Change: INQ's board and management team are focused on being the leading business in both the rapidly expanding quantum computing and quantum networking segments.
Speaker Change: Our corporate goals in the coming years are profitable growth, positive free cash flow, and commercial quantum market leadership.
Speaker Change: Now, turning to our financial outlook, we are pleased to announce that we will be raising our revenue guidance for the full year 2024 to a range of $38.5 million to $42.5 million, reflecting our confidence in our progress on our percentage of completion-based contracts.
Speaker Change: We currently expect revenue for the fourth quarter of between $7.1 and $11.1 million. We remain confident in our 2024 bookings guidance of between $75 and $95 million.
Peter Chapman: back to you Peter
Peter Chapman: Thank you, Thomas. As we have evidenced since IPO, via our customer wins and our fantastic third quarter, I&Q is demonstrably leading the commercialization of quantum computing and quantum networking worldwide.
Peter Chapman: The quarter's bookings were on par with our entire last year of bookings combined.
Peter Chapman: We are making great strides with our collaborations with AstraZeneca and ANSYS to break new ground in applications.
Peter Chapman: and we furthered our leadership position in quantum networking demonstrated by our 54.5 million dollar cornerstone deal with AFRL, as well as our achievement of the second milestone on our path to implementing photonic interconnects.
Speaker Change: We look forward to a strong close of the year and updating you all again on our fourth quarter call in February. With that, I'd like to turn it over to the operator for our question and answer session.
Speaker Change: Thank you. At this time we'll be conducting a question and answer session. If you'd like to ask a question please press star 1 on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please, while we poll for questions.
Speaker Change: Our first question comes from David Williams with the Benchmark Company. Please proceed with your question.
David Williams: Hey, good afternoon everyone, and thanks for taking my question. Lots of really interesting and exciting things going on. It's hard to find a place to start. But maybe first, Peter, can you speak to just the Cuba Tech acquisition, what that technology brings, and how does that kind of merge synergistically with what you've been doing internally?
Peter Chapman: Yeah, I'd be happy, David. Several things here. One is that as we've kind of talked about it in the past, the way that I and Q will get to scale is by photonically networking our quantum computers together.
Peter Chapman: and Cubitech is doing something similar, not exactly the same, but they have the same kind of rough skill sets in terms of people. The other side is it gives us another product line.
Peter Chapman: as well to go after in, you know, it's a new market for us. So it's both complimentary and also expands the TAM that we can go after.
Speaker Change: Okay, fantastic. And just kind of thinking about, you have the networking efforts now and you also have the computing side, how do you think about the sensing pillar in terms of quantum? And is that an area we should anticipate that you might be looking to enter at some point?
Speaker Change: Yeah, so one of the nice things is that often sensing requires quantum networking to be able to transport the quantum information.
Speaker Change: So, again, it enables another piece of infrastructure in the three different markets that kind of makes up quantum. It's quantum sensing, quantum networking, and quantum computing.
Speaker Change: Shapiro.
Shapiro: Okay, and then just one last one if I may, you know, you've talked about applications this quarter and before you alluded to it, and you know, we've seen before other applications or other areas where you've partnered with manufacturers or different industries work on a specific problem. Can you talk maybe about how this application develops over time and how you think about that relative to maybe the one-off things you've done in the past?
Speaker Change: You've kind of expressed, actually, the core of it. A lot of times we've worked with companies, sometimes for a one-off or maybe an R&D kind of project. We largely put an end to those about 18 months ago. And so we said, okay,
Speaker Change: It's time now really to focus on the applications that will be the first applications that we put into production.
Speaker Change: And so we didn't want to get started on the application software, you know, when we had the hardware done. We want the software to come along at exactly the same time as when the hardware is ready to run those applications. So we're timing those two things together.
Speaker Change: What the two announcements that are today with both ANSYS and AstraZeneca is the beginnings of working on those applications. We've been working on the prototypes.
Speaker Change: for these applications for the rest, I don't know, six or eight months or so.
Speaker Change: So we're not starting at square one, but it's not completed either.
Speaker Change: So that's kind of the major difference. I would put Hyundai maybe into the third camp as well, which is, you know, our engagements there are now moving into what can we do that actually helps them in a production sense as well.
Speaker Change: Thanks so much for the call. I certainly appreciate it.
Speaker Change: Our next question comes from Richard Shannon with Craig Hallam. Please proceed with your question.
Speaker Change: Hi guys, this is Tyler Anderson on for Richard Shannon. Congratulations on the quarter in M&A. I'm very surprised, it's amazing.
Speaker Change: Thank you for taking my questions. I was wondering, does the hardware from Cubatec require distillation or node-to-node swap operations? And then also, will the Chipscale, IonTrap, and iMac partnership be used within the AFRL contract?
Speaker Change: And could you describe the price of the Qubitek acquisition and expected incremental OPEX?
Speaker Change: Okay, I'll start. This is Dean. There's a lot to unpack from your question.
Speaker Change: basically generates two trap entanglement or two QPU entanglement.
Speaker Change: That is not part of the fundamental technology stack that we have with the Q-B-Tech and the QKD work that they have.
Speaker Change: There is similarity, though, associated with the milestone that we just actually announced with our photonic interconnects.
Speaker Change: in terms of like the Bell State Analyzer and the photon-photon entanglement. And so there is analogies between the work that we're doing with the photonic interconnect as well as what's being done in those quantum networks. And so there's...
Speaker Change: Parallel technology, some of it in the component technology, is one and the same, but right now they are operating at different frequencies, and so what we need to do for our photonic interconnects is fundamentally different than what you would need is currently being done as state-of-the-art in many of the QKD solutions.
Speaker Change: Your second question was associated with IMAC and some of the PICC development and its relationship to our AFRL work.
Speaker Change: The overall AFRL work is focused on development of our, in particular, the most recent large item was
Speaker Change: first associated with frequency conversion. So this goes back actually to relate to the Qubitec acquisition where we're looking at conversion of wavelengths from barium and other computing frequencies down to telecom frequencies to be able to push the entanglement over long distances.
Speaker Change: The second piece of that is the
Speaker Change: I would say photonic switching, that work there, the prototypes there. And then the third is really component ruggedization.
Speaker Change: The IMEC work
Speaker Change: has the potential to play in all of those areas, but not in the near term, but instead in the far term. So as we think about our technology stack, as we think about putting optics down onto chip-scale devices, that is where we expect to see that. None of the activities right now within the period of performance of our current AFRL contract.
Speaker Change: And then there was one other question which is price. Oh yeah, so the consideration for the acquisition is 22 million dollars which we have funded in cash from a balance sheet. The details are laid out in the quarterly disclosures. We evaluated the size and determined that the cash commitment was manageable relative to the size of our cash position and we plan to close the transaction in the next six months.
Speaker Change: And I'll just add one other little piece, which is that the Cubitech purchase also, given their existing contracts, they have a relationship with real world telcos.
Speaker Change: and so it kind of moves our efforts out of the laboratory and now starting allows us to start to test in in the field so to speak.
Speaker Change: Great questions, by the way.
Speaker Change: Thank you. Thank you.
Speaker Change: Awesome, thank you guys. And then one more for me, could you quantitatively frame the near-term government spending opportunity on a national and an international level?
Speaker Change: And then, where is your strength across the different types of opportunities as far as application, computation, and networking? And what are the size of those different buckets?
Speaker Change: We might need another whole meeting, I think, to get through that question.
Speaker Change: I think maybe what we could probably best point you to is to some of the work that
Speaker Change: you know, the BCGs and the McKinseys of the world in terms of what the expected markets are for those things.
Speaker Change: Clearly, you know, we have one of the things that I think most proud of at I&Q is we've kind of told the market even from the first day of the IPO what it is we're going to do.
Speaker Change: and we just do it. We keep on doing it and exceeding it. So it's actually not much of a secret. We've been saying it since the first day of the IPO.
Speaker Change: Okay, then maybe just a little bit shorter, how would you weigh your focus between government and commercial monies moving forward with all of these acquisitions and the telco involvement?
Speaker Change: Well, in the near term, it's been, you know, a good portion, which is towards government. But, you know, the beginnings now of these application projects, you know, now it's starting to switch over to enterprise.
Speaker Change: and you know that's always been the plan if you again if you go back to the very beginning of the IPO you'll see that we said hey it's really going to start to take off as soon as we can start to bring these applications online.
Speaker Change: Awesome. Thank you guys and congratulations again. Thank you.
Speaker Change: As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: One moment please while we poll for questions.
Speaker Change: Our next question comes from Shadi Marwali with Needham & Company.
Speaker Change: Please proceed with your question.
Speaker Change: This is Shani Mowali dialing in for Quinn Bolton. First off, congrats on an exciting quarter. Lots to unpack here.
Speaker Change: Earlier in the year, you guys announced a major milestone in photonic interconnects and now with the partnership with NKT Photonics, it's clear IMQ is making solid work on the photonics front. I just want to touch on how NKT Photonics systems will support the commercialization of IMQ's quantum computers.
Speaker Change: I'll take it first from the technology perspective, and Peter can take it from the business perspective. On the technology side...
Speaker Change: NKT has a different kind of different sets of different lasers and there's different laser technology, diode lasers, pulse lasers.
Speaker Change: fiber-based lasers. And so what we're looking for from a technology perspective in our laser kind of vendors and suppliers
Speaker Change: are robust lasers that operate at the frequencies and the wavelengths that we're interested in.
Speaker Change: and lasers that simply just work, right? And so part of this represents us both trying to put in place larger-scale manufacturing and larger-scale kind of supplier agreements, as well as trying to down-select to
Speaker Change: technology partners that can provide the wavelengths that we need, the cost points that we need, and the robustness and stability that we need for really 24-7 operation of the systems.
Speaker Change: And I'll just add just a little bit on the business, which Dean kind of hinted at, which is, you know, it's the question of
Speaker Change: the cost of these systems. Lasers are a significant portion of our overall cost. So when we sat down and said, look, we're going to be moving to production...
Speaker Change: One of the pieces to be able to reduce the cost also reduce the size So this is investments that you see in both of these announcements today Both with IMEC and also within KT as us actually working towards that promise
Speaker Change: Great, great. Thanks for all that. And then maybe on OPEX, you guys announced a number of new partnerships and awards this quarter. And earlier in the prepared remarks, you guys talked about expanding the team to support all this growth.
Speaker Change: So just curious on how we should think about OPEX going forward and then maybe talk about how much the team needs to expand to support all this growth.
Speaker Change: Well, the...
Speaker Change: I think that where we are on OPICS for the rest of the year is already laid out in what we have discussed earlier. We're not making any change to OPICS right now and we will be discussing the future.
Speaker Change: the objects for next year on the Q4 call, which I look forward to seeing everybody call into as well.
Speaker Change: What we are focusing is We've done we've gone through rapid growth and it's time for us to Think about growth where it really matters and start making sure that we are always investing in
Speaker Change: only the places that matter, and that we refunnel capital to the areas where they can be the most and best used.
Speaker Change: Awesome, yeah, thanks for all the color and congrats on the exciting quarter. Thank you.
Speaker Change: We've reached the end of the question and answer session. I'd now like to turn the call back over to Peter Chapman for closing comments.
Peter Chapman: Thank you. I want to thank everyone for joining us today, for your support, and for all the questions.
Speaker Change: Finally, I want to thank the entire I&Q team for the continued diligent work that contributed to such a meaningful quarter for us technically and commercially, and that continues to fuel everything we look forward to in the future. Thanks everyone.
Speaker Change: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.