Q3 2024 LifeStance Health Group Inc Earnings Call
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Hello.
It's 278-7723.
Speaker Change: Okay, so this is for the Lifespan Health. May I ask for your first and last name?
Sure, David Brown.
from AERA, is that correct?
That's right, yeah.
All right, please sign in now.
Speaker Change: Before turning the call over to management for their prepared remarks, please direct your attention to the disclaimers about forward-looking statements included in the earnings press release and SEC filings.
Speaker Change: Today's remarks contain forward-looking statements, including statements about our financial performance outlook, business model, and strategy.
Speaker Change: Those statements involve risks, uncertainties, and other factors, as noted in our periodic filings with the SEC, that could cause actual results to differ materially.
Speaker Change: In addition, please note that we report results using non-GAAP financial measures, which we believe provide additional information for investors to help facilitate comparison of current and past performance.
Speaker Change: A reconciliation to the most directly comparable gap measures is included in the earnings press release tables and presentation appendix.
Speaker Change: Unless otherwise noted, all results are compared to the comparable period in the prior year. At this time, I'll turn the call over to Ken Burdick, CEO of Lifestamps. Ken?
Thanks, Monica, and thank you all for joining us today.
Last month, on October 10th, we observed World Mental Health Day.
Speaker Change: Within our own country, the growing disconnect between the demand and supply of mental health services remains one of the largest challenges facing Americans today.
Speaker Change: to our mission of providing affordable and accessible mental health care.
Speaker Change: We at Lifestamps relentlessly fight each day to mitigate this crisis.
Turn it to financial performance.
Speaker Change: We are very pleased with the team's continued execution in the third quarter.
Speaker Change: For the eighth consecutive quarter, we have met or exceeded our expectations.
Speaker Change: Our revenue growth of 19% and our disciplined execution created solid operating leverage that yielded a 9.8% profit margin.
Speaker Change: Based on the strong performance in the third quarter, we will again be raising our full-year guidance for all financial metrics.
Speaker Change: I cannot emphasize enough the role that our clinicians have played and our achievements in the third quarter and throughout the year.
Speaker Change: as well as the value they deliver every day in providing high quality patient care.
Speaker Change: We now have a team of over 7,200 clinicians, an increase of 285 just this quarter.
Turning to operational execution.
Speaker Change: We continue to make progress on our initiatives to streamline the business and improve performance.
First.
Speaker Change: We continued the implementation of our new operating model. As a reminder,
Speaker Change: This initiative standardizes our organization with consistent staffing and processes across our 33 states and over 550 centers.
Speaker Change: We are confident that this higher level of administrative and clinical support will position the business to scale efficiently in 2025 and beyond.
Speaker Change: Additionally, we continue to roll out our new digital patient check-in tool.
Speaker Change: We have implemented it successfully in 11 states and expect to complete the national rollout by mid-year 2025.
Speaker Change: While still in the early stages, we are seeing higher patient satisfaction, operational efficiencies, and significant improvements in patient collections where this tool has been deployed.
Shifting to payer strategy.
Speaker Change: We are proud of the success that our payer engagement team has had in securing improved rates.
Speaker Change: While this represents progress, we still have a long way to go to achieve parity with physical health reimbursement.
As previously communicated,
Speaker Change: The third quarter is the first one where the decrease in rates from a single outlier payer with above-market reimbursement is reflected in our results. However,
Speaker Change: Much of the impact of this initial rate decrease was mitigated by negotiated rate increases with other payers.
Speaker Change: Many of the new rate increases went into effect sooner than we had expected, which drove the outperformance in total revenue per visit.
Speaker Change: Before concluding, I want to take a moment to comment on the recent hurricanes Helene and Milton.
Speaker Change: My thoughts go out to each and every one of the Lifestance patients, clinicians, team members, and the communities we serve that have been impacted by these storms.
Dozens of our centers were affected.
Speaker Change: and all but two were back up and running within one week.
The remaining two centers reopened by mid-October.
Speaker Change: I am proud and appreciative of the way that our teams responded to these disasters.
Speaker Change: Yet another testament to the resilience of the team and dedication to putting our patients first.
Speaker Change: With that, I'll turn it over to Dave to provide additional commentary on our financial performance and outlook. Dave.
Dave: Thanks, Ken. Like Ken, I'm pleased with the team's operational and financial performance in the third quarter. We delivered strong top-line results with revenue of $313 million, representing growth of 19% year-over-year.
Dave: The outperformance was driven by higher total revenue per visit and increased visit volumes.
Speaker Change: Visit volumes of 2 million increased 15% year-over-year driven primarily by clinician growth.
Dave: In the third quarter, we added 285 net clinicians, which exceeded our expectations.
Dave: This brings our total clinician base to 7,269, representing growth of 13% year-over-year.
Dave: There's variability in the pace of clinician ads throughout the year. Similar to last year, we expect a lower number of net clinician ads in the fourth quarter.
Dave: With regard to clinician productivity, it came in slightly ahead of our expectations in the third quarter.
Dave: Total revenue per visit increased 3% year-over-year to $159, primarily driven by pay rate increases that came in earlier than our previous expectations and to a lesser extent one-time favorability.
Regarding profitability.
The better-than-expected top-line results flowed through the center margin.
Dave: Center margin of $100 million in the quarter increased 32% year-over-year primarily due to higher total revenue per visit, higher visit volumes, and operating leverage and center costs.
Dave: Our performance in the quarter, relative to our expectations, was primarily driven by higher total revenue per visit, higher visit volumes, and lower than expected spending.
Dave: Adjusted EBITDA of $31 million in the quarter was very strong and exceeded our expectations, increasing 110% year-over-year. This is the fourth consecutive quarter of doubling our adjusted EBITDA year-over-year.
Dave: Ejected EBITDA as a percentage of revenue grew over four points year-over-year to 9.8%. The outperformance in the quarter was primarily attributable to the improvement in center margin as well as lower than planned spending in G&A.
Turning to liquidity.
Dave: In the third quarter, we generated solid free cash flow of $18 million. We exited the quarter with $103 million in cash and net long-term debt of $279 million.
Year-to-date, we have generated approximately $30 million of free cash.
Dave: In the fourth quarter, we are making an enhancement to our clinician value proposition by implementing a biweekly payroll cycle for our clinicians who were previously paid on a monthly basis.
Dave: This will have a roughly $15 million negative impact on cash and Q4 related to the change in pay periods.
Dave: Even with the impact of this payroll change, we expect to be free cash flow positive in the fourth quarter and now expect to finish the full year with meaningful, positive free cash flow due to stronger year-over-year operating results.
disciplined capital deployment, and progress towards resolving collection issues.
Dave: DSO improved two days sequentially to 47 days in the quarter. We are continuing to work through the impact from the changed health care collections disruption along with some delays from a couple of payers updating their systems to reflect higher negotiated rates.
Dave: These are all timing issues that we are actively working through, and we expect DSO to further improve in the fourth quarter.
Dave: We continue to see improvement in our leverage ratios, with both our net and gross leverage ratios improving nearly 50 basis points sequentially to 1.7 and 2.7 times, respectively.
Dave: This represents a significant decline from 4.4 net and 5.3 gross leverage in Q3 of last year.
In terms of our outlook for 2024.
Dave: We are raising our full-year revenue range by $17 million at the midpoint to $1,228,000,000 to $1,248,000,000.
Dave: We are also raising our full-year center margin range by $17 million at the midpoint to $382 to $398 million.
Dave: and the fully-adjusted EBITDA range by $15 million at the midpoint to $105 to $115 million.
Dave: For the fourth quarter, we expect revenue of $302.5 to $322.5 million, center margin of $89 to $105 million, and adjusted EBITDA of $18 to $28 million.
Dave: Due to some of the one-time rate favorability in the third quarter, we expect modest quarter-over-quarter decline in total revenue per visit.
Dave: As previously stated, based on the adjusted EBITDA outperformance so far this year, we continue to give ourselves flexibility through the remainder of the year to make additional investments to better position us to achieve our 2025 growth objectives.
Additionally,
Dave: We continue to expect stock-based compensation to be at or below the bottom of our previously guided range of $80 to $95 million. This represents a significant reduction from $99 million last year.
Dave: We will open six DeNovos in 2024, with an additional five to ten originally planned for this year shifting into early next year.
Dave: As a result, we expect substantially higher de novo openings in 2025 and will provide specifics when we deliver guidance next quarter.
Looking ahead to 2025.
Dave: I'd like to provide an early view on headwinds and tailwinds for the business.
In regards to headwinds, as a reminder,
We stated we would experience downward pressure.
Dave: and total revenue per visit, not only in the back half of 2024, but also the first part of 2025 due to the single outlier payer negotiating their reimbursement to be more in line with our overall book of business.
Dave: In addition, the current CMS rate proposal for 2025 is a reduction of almost 3 percent.
Dave: We expect to be able to offset both of those decreases by improving reimbursement with other payers and now anticipate that our overall rate growth next year will be roughly flat.
In regards to the Haloids.
Dave: We continue to see strong growth of clinicians and patient demand, which will drive visit volumes.
In addition, we expect continued operating leverage.
Dave: As a result of these headwinds and tailwinds, we expect minimal margin improvement next year.
Dave: We feel good about our ability to navigate and absorb challenges, such as the rate dynamic, while also delivering on our commitments regarding mid-teens revenue growth and exiting 2025 with double-digit margins.
Ken Burdick: With that, I'll turn it back to Ken for his closing remarks.
Thanks, Dave.
Ken Burdick: As we enter the final stretch of 2024, I'm looking forward to maintaining the momentum of the last eight quarters.
Thanks to the tremendous dedication and commitment of the team.
Ken Burdick: We have outperformed our expectations on nearly every metric this year, including revenue, adjusted EBITDA, and free cash flow.
Ken Burdick: in a year with significant disruption to collections and an unprecedented rate reduction by an outlier payer.
Ken Burdick: I'm incredibly proud of the resilience demonstrated by our entire team.
Speaker Change: We acknowledge that 2025 will be a particularly challenging year due to the rate dynamics that Dave highlighted.
Speaker Change: 2024 is shaping up to be a year of very strong margin expansion.
Speaker Change: We are well ahead of schedule in delivering on our multi-year financial commitments.
Speaker Change: As this is our last earnings call in the current calendar year.
Speaker Change: I'd like to take a moment to express my appreciation to our 10,000 colleagues.
Ken Burdick: who delivered the results that Dave and I have the privilege of sharing with all of you today.
We will now take questions. Operator?
Speaker Change: At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster.
Speaker Change: Your first question comes from the line of Craig Heddenbeck with Morgan Stanley. Please go ahead.
Craig Heddenbeck: Yes, thanks. Ken, just on the point of total revenue per visit, you know, you managed to put up flat sequentially, still up 3% year-over-year despite that large payer headwind. So, can you just give some context in terms of the payer engagement team, some of the success you're seeing there, and what rate increases are looking like at other payers?
Sure, Craig.
Ken Burdick: I'm really, really proud of the Payer Engagement Team. They've done a heck of a job this year, and as you might recall
Craig Heddenbeck: This team didn't even exist until the early part of last year.
Craig Heddenbeck: They've sort of gotten their sea legs, and they are executing beautifully.
We had some very meaningful increases from other payers.
who were
Craig Heddenbeck: Quite a bit below the the average reimbursement and that certainly helped
Craig Heddenbeck: to offset as as Dave described. So I would describe the
sort of the payer.
environment as
positive, constructive.
Craig Heddenbeck: But it's not lost on us that the payers right now are going through some unique challenges between the V28 risk scoring, coding changes, higher than expected utilization, and.
Medicaid rate disconnect because of the acuity difference between the
Craig Heddenbeck: pre-COVID and then the post-redetermination demographic. So we take none of this for granted. We feel really good about the
Craig Heddenbeck: The relationships that we are building, but we do recognize that it is a
Difficult time in the payor space.
understood and then just to follow up
Craig Heddenbeck: You touched on before the supply demand imbalance for the industry, so clearly the demand is there. For Lifestand specifically, can you hit on just some of the efforts to continue to grow clinicians and importantly just the mix of clinicians working more full-time, like what that means for you?
Yeah, that's clearly our long-term strategic intent.
the vast majority of our clinicians working full-time, but given...
Craig Heddenbeck: this supply-demand imbalance. We're being really thoughtful and quite careful about how we do it. I've mentioned before that we've put some incentives in place to make it more attractive to work full-time. We have not seen this massive shift. We thought there might be. It hasn't worked out.
Speaker Change: We're seeing sort of modest movement, so I expect it's going to be sort of a multi-year effort. One of the things that we probably don't talk enough about, Greg, is the fact that
We, um...
Craig Heddenbeck: do an awful lot of hiring of people that have recently graduated. So we have become a significant training ground for those folks that graduate and are looking to obtain their license.
Craig Heddenbeck: And that serves, in my mind, you know, two very positive things. Number one,
Craig Heddenbeck: we're adding to the number of practicing clinicians in the mental health space. Number two, we can sort of teach them, and if you will, orient them to the life stance way of doing things. And that makes it.
Craig Heddenbeck: we think, much, much easier for them to get, you know, ramped up and establishing a career at Lifestance.
Got it. Thank you.
Speaker Change: And your next question comes from the line of Ryan Daniels with William Blair. Please go ahead.
Speaker Change: Hey everyone, congrats on the quarter. This is Jack Sempton for Ryan. First, maybe on your capital allocation strategy going forward, your cash balance seems to be in a pretty good spot and I know you're reiterating the free cash flow positive guidance for the year, but you also have some long-term debt on the balance sheet. Are you planning on paying that down at all or will you look at, you know, opening more de novo clinics and maybe even M&A before that in 2025? Just wondering if you can kind of dig a bit deeper into what your priorities for capital are going forward. Thanks.
Speaker Change: Hey, good morning, Jack. This is Dave. I'll take that one.
Speaker Change: So, as you mentioned, we feel good about our financial flexibility. Now, I have over $100 million of cash on the balance sheet. We have the $50 million of Revolver still. So we feel good about our flexibility. When I think about capital deployment and our priorities as we step into 2025, 2026,
Speaker Change: The primary use of that flexibility, number one, is going to be funding internal growth. So as you mentioned, it was DeNovo's technology projects, things like that.
Number two would then be acquisitions.
Speaker Change: we said we would be more acquisitive once we were positive free cash flow and that we would be funding acquisitions from our balance sheet. I think of those as the two primary uses of capital. I do not anticipate buying down debt, especially when you look at our leverage ratios being so healthy right now.
Speaker Change: Okay, perfect, understood, thank you. And then just another follow-up too, you mentioned offsetting the negative rate impacts with other payer rate increases, just kind of wondering how those rate negotiations and talks have gone with the other payers that are helping you to offset the impact? I think you, I mean, as you noted that the payers are kind of in a tough environment now, so just kind of curious how those conversations have gone, you know, if there's been a good amount of pushback, or just if you can give us any detail on that. Thanks.
Yeah, Jack, this is Ken again. I'll just reiterate that...
Thank you.
Speaker Change: that the team that we have built is doing a really good job so that we have ongoing conversations with payers as opposed to, you know, there's no communication until it's time for one party or the other to renegotiate rates. So I think that's really healthy. I wouldn't say it is easy, but I would say that the continued
loud and sustained cry from employers
Speaker Change: to gain better access for their employees and dependents is probably our single greatest lever as we have these conversations. And the fact that
Speaker Change: There really is a shortage. In many, many instances, somebody tries to access mental health care.
Speaker Change: and gets exhausted before they ever get their first appointment because they go through a...
a long list and
Speaker Change: Too often, they find out that these clinicians are not open to seeing new patients. So that is a very legit dynamic that frankly hasn't improved in spite of sort of more attention and more focus on the issue. So they are
Speaker Change: They are not simple. These are not sort of one conversation and done.
Speaker Change: These conversations can often take months, but as I've said, I encourage that they continue to be very constructive and productive in spite of the fact that payers are going through a challenging time right now for all the reasons I mentioned earlier.
Speaker Change: Perfect. Makes sense. Thanks. If I can just sneak one final really quick one in here. G&A had a nice sequential decrease. Is this kind of a level we should expect going forward and maybe into 2025? Can you just touch on G&A expectations? Thanks.
Speaker Change: Yeah, so I'll certainly give more specifics on 2025 at the fourth quarter call when we're doing our guide for next year.
But as you think about GNA...
Speaker Change: And there's an implied step-up in our fourth quarter guidance, and that's related to two things that I would point to. The first being some increased hiring related to our operating model and just, you know, the overall business in general. And then the second...
Speaker Change: being some investments that will position us better for achieving our 2025 target. So you should see a step up from the Q2, Q3 level as we finish the year.
Okay, perfect. Thank you again and congrats again.
Thanks, Jack.
Speaker Change: Your next question comes from the line of Jamie Purce with Goldman Sachs. Please go ahead.
Speaker Change: Hey, good morning. I was hoping you could focus on the clinician recruiting environment for a minute. Obviously, a pretty healthy number here in the third quarter, but maybe just an update on how many clinicians are in the markets you're actively recruiting, what the funnel and conversion rate looks like these days, and maybe some thoughts on the competitive environment, including remaining independent.
Speaker Change: Yeah, Jamie, I'll take that. I would say it's fairly stable. We have not noticed a dramatic change either that it's become much, much easier to recruit or more difficult.
We obviously have a particular...
Speaker Change: compensation model so it attracts those that are more entrepreneurial and if somebody wants sort of straight salary that you know this is not going to be the location for them. So that takes out some portion but we continue to find
Speaker Change: significant interest on the part of both, as I mentioned earlier, people coming right out of school as well as people that are in a smaller independent practice because of some of the benefits that they will receive by coming to Life's Dance, you know, not the least of which is
that we have.
Speaker Change: The professional development opportunity that we offer is something that we're going to continue to weigh into because we had a lot of feedback that that's highly desirable, so
Speaker Change: I would say we continue to be pleased with the pipeline and with our conversion.
Speaker Change: Okay, great. And then you've had improvement really all year in center cost per visit. How should we think about that?
Speaker Change: Progressing going forward in light of some of the de novo comments next year, that ramping, and then just relatedly, I mean, how are you thinking about in-person versus telehealth as you start to ramp up de novo openings next year? Thank you.
Speaker Change: Yeah, I'll take that one, Jamie. There's a couple pieces there. So, first of all, address the de novo question.
Speaker Change: So, as I mentioned in my prepared remarks, we're only going to open six this year, but we had five to ten that, just because of timing and how long it takes.
Speaker Change: for the approval process and construction are pushing in the first quarter of next year and that there would be a meaningful step up next year. Now, we're not at a point of guiding, but
Speaker Change: I mean, but I want to make the point that we're not going back to the old days of building like a hundred DeNovos next year. You could think of it, it's going to be in the zone of...
Speaker Change: Danovos, and then add the five to ten that are delayed from this year pushing into next year. So that's, you know, it's going to be in that zone, but we'll tighten that up again on the fourth quarter call when we're giving guidance.
Speaker Change: In regards to the in-person utilization, it's pretty stable, second quarter to third quarter, just a little bit over 70% virtual, 30% in-person.
Speaker Change: For new patients, we're still seeing that in-person level being about 10% higher than the average, so about 40% in-person for the new patient visit.
Okay, really helpful. Thank you.
Speaker Change: And your next question comes from the line of Brian Tankowitz with Jeffries. Please go ahead.
Speaker Change: Roble in for Brian. Thanks for taking my question. Center margin in the quarter came in really strong and Dave in your remarks you noted you expect them to be relatively stable into 25 and I'm just curious if you all think the implied Q4 center margin is a good run rate for the business as we look over the next 6 to 12 months.
Speaker Change: Yes, it's Dave. I'll take that one. The way I think about 2025...
is
Speaker Change: that overall we will see some minimal margin expansion versus 24.
Speaker Change: because of the big outperformance we're seeing here in the back in the back half of the year and the components of that is I expect to see some modest
Speaker Change: compression or pressure downward on center margin margin next year because we'll have flat TRPV and we're still going to increase our clinician costs.
Speaker Change: So, you're going to have some pressure on center margin. At the same time, we will see the benefits of operating leverage on the GNA line, and then you can net those two together, and you end up with a minimal increase in overall margins.
Thank you.
Speaker Change: Got it, thank you. And then Congress has been waffling on whether to permanently extend telehealth Medicare reimbursements and just curious on your outlook on the extension of these reimbursements considering the government funding deadline next month.
Yeah, the, um...
Speaker Change: Obviously, with new administration, we don't know exactly how it will play out, but as we monitor this...
Speaker Change: The increased recognition of the importance of improving access to mental health and the effectiveness of telehealth visits
Speaker Change: We believe that there is a high, high degree of likelihood.
Speaker Change: that the telehealth visit reimbursement will be sustained and maintained on into the future. So I would probably describe it as it's a discussion, but I don't sense that there's a lot of waffling sort of back and forth as to.
Speaker Change: whether there should be a change especially given the environment that we've described, the disconnect between supply and demand.
All right, thank you.
Speaker Change: And your final question comes from the line of Stephanie Davis with Barclays. Please go ahead.
Hey guys, thanks for taking my questions.
Speaker Change: saw you had some really solid improvements in your clinician count and we've been hearing some of your more virtual peers on the public and private side talk about excess clinician capacity.
Speaker Change: So I wanted to hear if that is more a function of platform improvements or kind of the backdrop and the market improving. And because of the excess capacity comments I've heard from the private peers.
Speaker Change: Have you looked at their platform improvements and considered borrowing any learnings from them or have you borrowed any learnings from them in order to kind of improve your clinician retention?
Speaker Change: So, Stephanie, maybe you can help. The excess capacity, can you explain what you're referencing?
Speaker Change: So we've heard of virtual only peers actually having more inbound applications from clinicians.
Speaker Change: then they're able to hire or able to have utilization for, which is very opposite from what you've been seeing.
and they've attributed it to platform improvement.
Speaker Change: So I've been curious if this is a function of the market, or if this is a function of platform improvement. And if it is platform improvement, maybe what learnings you guys could borrow.
Speaker Change: Yeah, well, that's actually new information to us. We have, I mean, the number of people sort of graduating and you know, going through training, we have not seen a substantial uplift. Based on your question, we'll obviously look into that, but
Speaker Change: Pardon me? I said, sounds like we need to go and do a little more deeper diving in the call background.
We'll be sure to go help you on that one.
Speaker Change: Again, we don't see a change. I'd love to see a change in the disconnect between the demand for outpatient mental health and the supply of clinicians able to provide that, as your question suggests.
Speaker Change: perhaps as you talk about some of these virtual only companies, they're just at a scale where, you know, whether it's their platform, whether it's their compensation model, etc., they are seeing more interest. I have...
Speaker Change: So much respect and appreciation for the work that our clinical recruiting team does because as we talk about 285 net clinicians
Speaker Change: Obviously that means we've hired substantially more than that given that on a base of 7,000
Speaker Change: We do have, you know, meaningful turnover that has stabilized, but it's nonetheless a factor. So...
Speaker Change: I hope that what I find when we research this further is that there is an increase.
Speaker Change: and professionals that want to go into the mental health practice. But that is not something that we've seen and frankly it's not something that I've heard in or read in the literature. So we will follow up on that. That would be very good news.
Speaker Change: And a follow-up, I guess, related to that, when you think about some of the investments you're making in order to improve clinician retention, have you considered any of the Gen-AI tools that can kind of...
Speaker Change: Take the back end and documentation burdens off of folks or is that price point just
not at an area where you'd want to be investing.
Oh, no, no, that is squarely within our, our, uh,
Speaker Change: Fairway, and very much on our radar screen. So we are piloting some of that right now. I would describe it as machine learning where we can.
provide tools that dramatically improve
Speaker Change: the experience of note-taking and documentation after a visit. So again, it's one of the advantages of our size that we can
access the very best in tools that are out there.
Speaker Change: But we're being thoughtful in the way we deploy it. We're being really disciplined in our change management initiatives, but
We are not only improving...
Speaker Change: The tools and look to continue to do that, but as we talked about this new model, the model is improving the support that we provide our clinicians.
So both in terms of increased administrative support
Speaker Change: that while I would never say we're done, we actually still have more to do.
Speaker Change: Towards the back half of this year and certainly into next year, we're going to be creating an even more positive environment within which our clinicians perform their valuable services.
Awesome to hear. Thank you guys.
Speaker Change: All right, if that was the last question, I just have a couple of closing remarks.
Again, I appreciate everybody's interest in Lifestance.
Speaker Change: I don't think I talk enough about the incredible work that our clinicians do, so I'll simply share that the very best part of my work week is when I read through the patient testimonials.
Speaker Change: We get literally several hundred every week, and it is it's a bright spot my day. The impact that we're having on lives is extraordinary. And then finally what I'd say is
Speaker Change: We're finishing 24 strong. I'm incredibly appreciative of the work that's done. Sometimes I have to remind myself that this company is only seven years old.
Speaker Change: You know, we've gone through a hyper-growth phase, and more recently we've been in what I'll call the three S's—stabilize, standardize, and strengthen.
Speaker Change: But what the future holds is incredibly exciting. The industry tailwinds are palpable, and I don't see any change. And so the best is yet to come. Once again, I want to thank.
10,000 of my teammates who have
Speaker Change: gone through this two-year period where we are fortifying the foundation and strengthening the platform so that we can grow profitably and look forward to the years to come. So thank you, operator, and this could conclude the call.
Speaker Change: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.