Q3 2024 Cheche Group Earnings Call
Speaker Change: [music].
Good day and welcome to the Churchill Group third quarter 2024 earnings Conference call.
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After todays presentation, there will be an opportunity to ask questions.
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Speaker Change: Please note this event is being recorded.
Speaker Change: I would now like to turn the conference over to Crocker Coulson Investor Relations for check with please go ahead.
Speaker Change: Thank you Betsy Hello, everyone. Thanks for joining us to review churches Twenty-twenty for our third quarter results.
Morning, Curt you posted both the earnings release and a related investor presentation to our website, which you can find at IR Dot Church of group Dotcom.
On the call today are John churches, founder and CEO, and Sandra G churches, Chief Financial Officer.
Speaker Change: After their prepared remarks are concluded we're going to open up the call for any of your questions.
Speaker Change: But before we begin some statements in this conference are forward looking within the meaning of federal Securities laws.
Speaker Change: Although management believes these statements are reasonable we can provide no assurance that they will prove to be accurate because they are prospective in nature.
Speaker Change: Actual results could differ materially from those we discuss today.
Speaker Change: Therefore, we'd like to encourage you to review the most recent filings with the SEC for risk factors that could materially impact our results.
Speaker Change: As I mentioned the earnings results.
Speaker Change: The release is available on IR got CECI group Dot Com. We encourage you to review in addition, the reconciliations of certain non-GAAP measures contained within that.
With those formalities now out of the way, it's my pleasure to turn the call over to Lei Zhang CEO Lei. Please go ahead.
Lei Zhang: <unk> crowd.
Lei Zhang: Hello, everyone. We are so glad that youll have to join us.
Lei Zhang: Federal called her what's a notable quarter for us.
Lei Zhang: As a result to reach at a profitable inflection point.
Lei Zhang: Recall it team that income on both a GAAP and adjusted basis.
Lei Zhang: The company's shift to profitability piece of it as a kind of concrete proof that our complaining value proposition and the folks on your first day operations are paying off.
Lei Zhang: Picture continues to offer the largest auto insurers technology platform in China.
We lead the industry by providing customized intelligent software and embedded in insurance.
Speaker Change: Cause too much scratch choice and recover NESA.
Speaker Change: Between 2021 under the third quarter of this year.
Speaker Change: What you haven't provided a quote for a moat.
Speaker Change: 15 million workers.
Speaker Change: Last one 9 billion USD eight written premiums.
Speaker Change: And the collaboration with 100 insurance carriers.
Speaker Change: Chinese EV manufacturers continue to lead the world in the production and sales.
Speaker Change: Between January and October of this year.
Many of you in Bakersfield 1.7, mainly we of course, an increase of 34% over pro wire yeah.
So you reassess overtook conventional IC alturas in July 'twenty 'twenty four how does it now make up majority of new vehicle sale H M O.
Speaker Change: This change in the market is profound implications for the auto insurance ecosystem.
Speaker Change: I'll tell you in source is increasingly sold under renewed through OEM apps and the work of screens rather than traditional brokers.
Tricia currently partners with 14 different EV manufacturers.
Speaker Change: <unk> most of that was the largest single player.
Speaker Change: We.
Speaker Change: <unk> passed that over the next three years premiums generated through OEM tenors will exceed 200, beating RMB.
Speaker Change: According to analyst at J P O.
National.
Speaker Change: Premiums for insurance.
Speaker Change: Insurance.
Speaker Change: Pegged to approach 500, feeling M b by 'twenty City.
Speaker Change: The top three auto insurance.
Speaker Change: Realized they needed to participate in these markets, but as they are struggling to make money due to higher asking street and the higher plan.
Speaker Change: Russia Adv.
Speaker Change: Yeah.
However, the Chinese government has recently widened the band of four different pricing, providing insurance with great latitude to reward positive driver behavior.
Speaker Change: Churches platform offered to capability for more.
Personalized auto insurance pricing.
Speaker Change: Also enable EV.
Speaker Change: Manufacturers to ultimate claim management.
Speaker Change: Repair roads in.
Speaker Change: Two validated claim Mandy.
Speaker Change: The magnitude of cost I would repairs.
Reduce the risk of fraud.
Speaker Change: That's the unknown is the third quarter the number of embedded of policies sold future platform with up to 140% year over the year too.
Speaker Change: 200 <unk>.
<unk> thousand policies.
Speaker Change: Gross premiums grew 120% from Harvey a year to 126 million U S D over the same.
Speaker Change: Period.
Speaker Change: We launched it as a customized system for Baidu to yeah, which all the variety of products and our solutions with online and offline.
Speaker Change: As Eva industry Mushy.
Speaker Change: Well shoot under the underwriting because the more precise.
Speaker Change: The soft hanbali high imagine margins of our growing number of policies, we have become a trend apparent.
Apparent as our revenue mix shifts.
Speaker Change: Our agreement with Great wall motor companies.
Speaker Change: This company provided our transaction system to support its director South net walk in more than 20 C D national wire.
Speaker Change: With plans to develop additional solutions for traditional automakers, we think in the next 24 months.
Part of the shifts with insurance carriers.
Speaker Change: Other essential.
Components of our strategy while we.
Speaker Change: Maintain a long term relationships with a mainstream insurance companies in China.
Speaker Change: This quarter also marked our first collaboration with a foreign owners insurance carriers.
Speaker Change: We signed our agreement with Coke Humira is Chinese subsidiary.
Speaker Change: Our service capabilities.
Opportunities to scale.
Speaker Change: We are also launching new facts and the data analytics tools to enable medium sized insurers to compete more effectively in underwriting I would tell you serious thought Bose I E V and I see there Chris.
Speaker Change: Expanding the number of active participants in the market is essential to bring the benefits.
Speaker Change: Competition to consumers.
Speaker Change: Looking ahead, our technology roadmap for <unk>.
Speaker Change: Manufacturers and embedding ourselves across the life cycle.
Speaker Change: As level, two plus two level three for theft.
Speaker Change: Self driving and about become more common on China, Ruth Oems and ensure we rigorously needed to determine if the cause I was asked into as a result.
Speaker Change: IRA or failure of the autonomous driving systems.
Speaker Change: Tricia will play the role of the trustee This third party by embedding this.
Speaker Change: Great Cool data.
Speaker Change: Dependent Ah study a platform so that Oh, yeah sure on the consumers can have a higher confidence in the assignment or liability.
Speaker Change: Our unique.
Speaker Change: With Apache and the comprehensive capabilities.
Speaker Change: Contributor to thriving digitally the service industry.
Speaker Change: Either value for our partners.
He is a long term we are working for.
Speaker Change: I extend our partnerships with auto manufacturers beyond China and into additional regions, such as southeast Asia and the Middle East.
Speaker Change: Given our broad appearance at six sites in China.
Speaker Change: Most of the stuff potential EV market in the ward.
Speaker Change: In hiring to date, how are we using our platform would have provided us with advanced year over local insurance companies, we're underwriting embedded or policies in this region.
Speaker Change: Having deep expertise in the company Intel.
Speaker Change: Intended to continue purchasing shares in the open market during available trading windows.
Speaker Change: Moreover, the company is planning to adopt a share back buyback plan was the board approved it.
Speaker Change: We I believe hit her with our completion of men and I look forward to.
Capitalizing on our future opportunities.
Speaker Change: I will now turn the call over to our CFO Sandra Thank you.
Yesterday I want to begin by touching on our third quarter operational and financial highlights before taking questions that total written premiums placed in third quarter increased 4% to RMB 4.0, sorry to RMB, five 9 billion or U S. Dollar 800 million the total.
Speaker Change: Elsewhere on policies issued grew 5% in this quarter to $4 2 million as what I mentioned before 292000 policies and RMB $884 2 million of grasp all the premiums.
Speaker Change: But at a rate well in 149, 6% and 121.
Speaker Change: 6%, respectively year over year currently the insurance policies Ieds enjoy lower commission rates that I think is due to the reduced to profile the profitability of insurance carriers. However, we can secure a significantly higher margins on their policies.
Speaker Change: That means weekend that that's may have positive implications for our bottom line and that makes a shaped continues in terms of our net revenues, we generated RMB 855 million or U S dollar of 121.
Speaker Change: I'm going to Lilly in the third quarter, an increase of the.
Speaker Change: The way point to 8% year over year.
Speaker Change: Cost of revenues in the third quarter was RMB $808 1 million or a U S. Dollar of $115 2 million outweigh that from the prior year culture. We also reported a 56.
Speaker Change: Six job center job in selling and marketing expenses to RMB, $18 1 million or U S. Dollar $2 6 million, primarily due to decrease in staff costs and share based compensation expenses.
Speaker Change: General and administrative expenses were also lower this quarter at RMB 24 million or U S. Dollar $2 9 million from RMB 34.82 million in the prior year quarter, mainly due to decrease the share based compensation and professional service fees.
Speaker Change: Search and development.
Speaker Change: <unk> decreased 24, 5% to RMB, 10, 2 million or U S. Dollar $1 4 billion, mainly driven by lower share based compensation expenses, and partially offset by higher staff cost the total cost and operating expenses decreased by one 8%.
Speaker Change: To RMB $856 8 million or U S. Dollar of 122 41 billion from RMB 872 million in the prior year culture, mainly due to the decrease in share based compensation expenses, partially upset by a increase in cost.
The bad news.
Speaker Change: Excluding share based compensation expenses.
Speaker Change: Asia of intangible assets related to acquisition and lifting related professional services fees. The total adjusted costs operating expenses increased 3% from the prior year quarter. That's eight call. It has a positive for this.
Speaker Change: First time, aviculture, resulting RMB $4 1 million or U S. Dollar there all four 6 million compared to the RMB 55.4.
Speaker Change: Core mailing loss in third quarter, our Chinese said you should adjust.
Adjusted net income for the quarter was also positive improving to RMB $2 6 million or U S. Dollar 0.4 million from RMB zero point.
Six adjusted net loss in the prior year.
Speaker Change: Turning to our balance sheet, we reported the RMB 190, 446, 1 million or U S. Dollar $27 7 million in cash cash equivalents and short term investments.
Speaker Change: As for our guidance, we are affirming our 2024 for your guidance for a year and their revenues are expected to range from RMB, two eight point vial filling to RMB.
Seven.
Speaker Change: Representing an increase of six point, what this attitude telephone 1% compared to a four year old town, you're talking to a total written premiums placed I expect it to range from RMB 24, 5 billion to $26 five representing an increase of eight 4% to 17, 3% compared to.
For a year I'm, Tony essentially with that well be happy to address your question.
We will now begin the question and answer session.
Speaker Change: To ask a question you May Press Star then one on your Touchtone phone.
Speaker Change: If you are using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: If at any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: The first question today comes from Allen Klee with Maxim. Please go ahead.
Hello Congratulations.
Speaker Change: On very strong results and everything you're doing your profitability came over a year and a half earlier.
Speaker Change: Earlier than what I was modeling so I'm quite impressed.
Speaker Change: Uh huh.
Speaker Change: Hi, My first question has to do with your partnerships.
Speaker Change: Hum.
Speaker Change: You said you had 14.
Speaker Change: The company's now where you're expanding with insurance companies, how do you think about kind of.
Speaker Change: As you sign is how they like.
Speaker Change: <unk> ramp up and you can hope.
Speaker Change: Translate into revenues.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change:
Speaker Change: Yeah, I will answer in Chinese Thank you mycology can't translate it into English.
Uh huh.
Speaker Change: So forgive him for changed at all.
Speaker Change: Uh huh.
Speaker Change: Well I don't Wanna woman.
Speaker Change: Hey tissue Felicia truly all of the truth she thinks yeah.
Speaker Change: The usual merchandising guns.
Speaker Change: B why it either you're shipping by John I'm sure.
Speaker Change: Uh huh.
Speaker Change: Foundry and bulk downtime tracing crasher conscious to relax and hopefully you've caught on up the idea that you got it.
Speaker Change: So as it relates to the J, Jill Trichet, social woman very light Tonia Lovell.
Uh huh.
Speaker Change: Yeah.
Speaker Change: No Ed.
Speaker Change: And you just mentioned right now we are cooperating lease 40 Oems.
We are providing insurance transaction sizes for them.
We are actually.
Speaker Change: We are actually working to extend our.
Speaker Change: On partnerships with safety breast for example.
Speaker Change: Currently providing services for two week, who model will be y D and in the future we plan to extend to provide more services for the brand.
Speaker Change: That's that's very positive thank you.
Speaker Change: You mentioned that for any fees the rates are lower since it's less profitable business for the for the insurers but.
Speaker Change: Your company can get.
Speaker Change: Better profitability out of them could you just explain how.
Speaker Change: Why that is.
Speaker Change: Sure.
Speaker Change: Okay.
Speaker Change: Uh huh.
Speaker Change: Uh huh.
Speaker Change: Are you waiting until Ashwin, a buoyant when Saddam chunky pay for Lear.
Speaker Change: Uh huh.
You are too much money there'll be I'll call. It a fashion, a paywall menasha wall on which a nicer even the painful for me here.
Speaker Change: Well I mean, some of it could you Oh, yeah, well since again the designs on the John that European items should.
Speaker Change: You should keep unduly undone corridor Shuang Ya <unk>.
Speaker Change: If only a bunk room bugging will go further into the room.
Speaker Change: I mean, maybe if I'm in a creep armed with twitchy.
Speaker Change: Congress should you Tongo morphing.
Speaker Change: We're looking hard at Yahoo, Joseph Buffy to ULE. The jogger. So you know that's really me I'm not sure which issue though.
Speaker Change: You'll hear what's quite soon as I'm done I'll tell you.
Speaker Change: Do you mean Ali.
Speaker Change: Okay, So basically for the.
Speaker Change: The insurance.
Speaker Change: Hi, Angela show that.
Speaker Change: Clay the claims ratio also high so as we do not take the raised.
Speaker Change: Clean we are just we are a platform company we ship.
Speaker Change: <unk> companies and the Oems to create a win win situation.
Speaker Change: So that's still a platform we can.
Speaker Change: Right.
Speaker Change: To provide a better pricing for the.
Speaker Change: They are car owners.
<unk> and.
Speaker Change: And we can provide.
Speaker Change: And Oh.
Speaker Change: More cheaper insurance.
Speaker Change: <unk> prices.
Speaker Change: So.
Speaker Change: That's why we believe that we're going to have.
Speaker Change: Huge increase in this market and we're going to have a strong profitability.
Thank you.
Speaker Change: Thank you.
<unk>.
Speaker Change: With.
Speaker Change: You talked about self driving and how you're employing that technology too.
Speaker Change: Is it greater confidence of where what might have caused that.
Speaker Change: And a potential play an accident.
Speaker Change: Can you explain what you're actually providing an and where how you're thinking about rolling this out.
Speaker Change: Okay.
Speaker Change: Uh huh.
Speaker Change: The format for me and I'll do sure you a woman who are you with us at all.
Speaker Change: Founder Twitching nausea, English would you could be assure him that Athena Angela Natasha <unk> gondola, depending on volume that you saw so you take issue with <unk>.
Speaker Change: She's already paid the Charlotte.
Speaker Change: The Cheyenne frontier.
Speaker Change: So in a nutshell deeg of EMEA woman without China should you be all familiar in Azure.
Duncan and Joshua <unk>, just all elements of it are the <unk>.
Speaker Change: Uh huh.
Speaker Change: <unk>.
Speaker Change: Sure. Thank you shocked them in beta.
Speaker Change: Are you able to truck bathroom tissue and play Bella are you shonda.
Speaker Change: On the general industrial food.
Speaker Change: So he dunson and Joshua <unk> horizontal well frankly quite sort of bound rule.
Speaker Change: So the tricky.
Speaker Change: Pending any.
Speaker Change: Any thoughts on that hydrogen Josh.
Speaker Change: Josh or a T cell.
Hello, pneumonia doors that you're you're early tender.
Speaker Change: Okay.
Speaker Change: No basically there are two aspects. The first one easily are sharing the data all visa Oems.
Catherine O'neill: Catherine O'neill.
Catherine O'neill: Yeah.
Catherine O'neill: <unk> entered into lightly.
Catherine O'neill: So our data could help to improve efficiency.
Catherine O'neill: Decrease.
Catherine O'neill: And that's the first one is the second.
Catherine O'neill: And the intent of and driving is becoming more and more popular and.
Catherine O'neill: And you can see the level two to level three.
Catherine O'neill: <unk> is becoming more prevalent in China. So basically there are around 70% of annual leave.
Catherine O'neill: Credit Suisse intelligent driving synergy so when accident exiting occurs.
Our interior driving is working we can have to decide.
Catherine O'neill: Whether this accident.
Because of the driver or is it because of that.
No equipment going wrong, so that's where our capability and basically we are leading in this industry.
Speaker Change: Thank you that's great. Thank you.
Speaker Change: You talked about potentially expanding.
Speaker Change: Within Southeast Asia, and the Middle East.
Speaker Change: Do you think that way.
Speaker Change: The way that could potentially happen is.
Speaker Change: That's been more creating an online marketplace and other countries or would it be.
Yeah.
Speaker Change: Okay.
Speaker Change: Tissue women too high.
Speaker Change: It will put out can be assured that when I O I O <unk> bulk oil <unk> out on the dose you can say hey, with the usual mix and therefore the shift together.
Speaker Change: <unk>.
Speaker Change: Hum in the church with our change order show well north bound to have that on the journey of the bank.
Speaker Change: Local that you don't buy it and we'll certainly see.
Speaker Change: I can tell you the shipping right, yes, begets your golf channels from the Union.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: So basically and so our expansion strategy you mentioned, we have just mentioned the southeast Asia and the middle East and even some countries in Europe, we actually doing this falling our existing clients such as the 14th.
Speaker Change: Anyway may cause we just mentioned.
Speaker Change: They are going abroad without going overseas.
Speaker Change: One of them to go overseas, we can have this anyway makers chip.
Speaker Change: She debuted connections with local companies just like what we see in China.
Speaker Change: And we come from a light this is Germany, and South Korea, and a full suite operation So as it stands now.
Speaker Change: Thank you.
Speaker Change: Thank you.
Could you talk about how.
Speaker Change: Non auto insurance and.
Speaker Change: Your sense offerings.
Speaker Change: How they performed and.
Speaker Change: How youre thinking about.
Speaker Change: It's two areas strategically to potentially grow them.
Speaker Change: Do you feel about your I'm not sure I mentioned that.
Speaker Change: Yeah.
You didn't want him Hudson's that you don't let you share the Oregon choice Young Glenda.
Eli Kent Saturday in the U S. You were.
Tricky on Kumar social.
Speaker Change: To nitrogen.
Speaker Change: Hi, Alex Yeah, Hi, Alicia.
Speaker Change: Jan combos here or there you go.
He engine.
Speaker Change: Take a champion for Russia.
Speaker Change: No I would say that now.
Insurance, we have several lines and the first one is.
Speaker Change: Insurance product that are related with autos for example that liability insurance.
Speaker Change: <unk>.
Speaker Change: So those at least in the auto insurance and the second one is that.
Speaker Change: Property insurance and health insurance.
Speaker Change: These are all the extensions of our product and service model. Thank you.
Speaker Change: Okay.
Speaker Change: My question Congratulations again, thank you very much.
Speaker Change: Thank you. Thank you.
The next question comes from Steve Silver with Argus Research. Please go ahead.
Speaker Change: Operator, thank you for taking my questions.
Speaker Change: Looking at the quarter.
Speaker Change: Growth in revenues outpaced the growth in our in the gross.
Speaker Change: Expenses, so it looks like the gross margin continues to be around the 5% range I'm just curious as to your thoughts about the expansion of gross margins over time.
Speaker Change: The platform continues to bring new value added services onto the platform.
Speaker Change: And then similarly on the operating expense line.
Speaker Change: Do you expect the operating expenses to continue to decline as a percentage of revenues moving forward. Thank you.
Sandra: Thank you this is sandra.
First question, Yeah, you're right actually were quite confident.
Sandra: With the gross margin yeah, we believe the gross margin of our business will be keeping increasing along with the mix of our revenues changes.
Sandra: As we mentioned you know because we enjoy higher margin in AAV insurance market.
Sandra: So that means you'll know the more.
Sandra: Business Nomura business from insurance, the higher the margin away, where we all have so that's the logic and our our patents are there yeah, that's well at the economy reality, because you know our total business course rates only low single digits, but as for the annual meeting.
Sandra: So in some markets the growth rates are it's all are 100%. So that means that we will that means the insurance.
Sandra: The insurance revenue will account for more than a more percentage of problem. The total picture, that's a logic and beside that I mentioned before we are also planning to launch a new facts and data analytical chores are related to the insurance to the market that will be.
Sandra: More high margin revenue to our total picture yeah. So that's another factor.
Sandra: We're all contribute to our gross margin.
Sandra: It's growing in the future but.
Sandra: So you know our English shorten the gross margin may fluctuate on quarterly basis due to a different market condition shorter, but Devin Italy.
Sandra: For the long term the chat the growing trend of well well well well be law changes so the.
The gross margin rate will be increasing going forward. Thank you.
Speaker Change: Okay. Thank you so much for the color and my congratulations on the quarter as well.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you would like to ask a question. Please press star one to enter the question queue.
The next question comes from Rio Gil with the ICC. Please go ahead.
Speaker Change: Okay.
Speaker Change: Thanks Kieran.
That's.
Speaker Change: Very true results.
Speaker Change: I've had great question.
Speaker Change: Firstly all boats.
The U S H E b.
Speaker Change: Total motor insurance market.
Speaker Change: Secondly, we think.
Speaker Change: Sure it's a market.
Speaker Change: How much do you believe.
Speaker Change: Pump.
Speaker Change: Manufacturing related or affiliated insurers.
I gotcha.
But it's not today. Thank you for that yeah, yeah, yeah, yeah, the whole well.
Speaker Change: Oh, Yeah, yeah yeah.
Speaker Change: Sure.
Speaker Change: We like the especially I mean, the startup we have Louis L C.
Speaker Change: Please go ahead.
Speaker Change: Yeah, Hey, Hunter this is Ed Palfrey Jaguar strip it out.
Speaker Change:
Oh my goodness.
Speaker Change: Hi, Joseph.
Speaker Change: Oh.
Speaker Change: Just don't go out with a cool.
Oh, okay.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Tom would you sort of icon.
Speaker Change: Well she.
Speaker Change: Yeah, <unk> change our opinion or minimally maintained.
Speaker Change: Maybe number two what's your I guess, it honestly I'm sure Biogen Bubba Israel.
Speaker Change: Well, maybe all of a sudden you whole she man. So again I'll tell you trend off avenues for shadow sure either to switch any of those changes.
Speaker Change: The deal is.
Speaker Change: Yeah basically.
Speaker Change: You can see from the current forecast.
Speaker Change: The interest in last year has reached a hanger billing RMB and this year is gone up.
Speaker Change: Effected to reach them.
150 billion RMB, so basically we expect that in a C.
Speaker Change: See falling three years anyway insurance.
Speaker Change: Around 40% to 50% basically half of the total insurance market auto insurance market.
Speaker Change: The other ones in audio sure survey.
Speaker Change: Could you talk or twitching on huh.
Speaker Change: And to what a particular trichet those sit on torture bogging down local even how clients at all.
Speaker Change: The pay ratio would've showroom electrical food a showroom.
Speaker Change: Now in the soda traditional Nicole Casher hanging wall such at home.
Speaker Change: In food a number with me.
Speaker Change: Sun yen Toyota should yeah Trisha.
Speaker Change: Twitchy com to the.
Speaker Change: Oh yeah.
Speaker Change: She never entry agenda.
Speaker Change: I'm going to Asia.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Have you canceled anyway.
The interest Mark Haynesville anyway interest is growing hugely OEM tiki highly value of the insurance because entry.
It is important hotel.
After sandwich services and after sales services Kim Greene.
Speaker Change: Important part our revenues to the company. So that's why it'd be.
Speaker Change: They decided to work with us and.
Speaker Change: We provide a system and assess spoke to work for them. So basically we also we expect that in falling.
Speaker Change: Yes.
Speaker Change: Ah the insurance.
Speaker Change: Now auto <unk> insurance controlled by the Oems, we are going to take at least a third one third of the market.
Speaker Change: Sure.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to the company for any closing remarks.
Speaker Change: We appreciate you taking time to join us on the call today.
Speaker Change: If you have any follow up questions. Please reach out to Investor relations.
Thank you have a once day goodbye.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Speaker Change:
Speaker Change: [music].