Q4 2024 Cryoport Inc Earnings Call - Q&A
Speaker Change: Good afternoon, and welcome to Cryoport's Fort Quarter in full year 2024 earnings conference call. All participants will start to listen only mode. Following the presentation, we will conduct a question in the answer session. If at any time during this call we require immediate assistance, please press star zero for the operator.
Speaker Change: As a reminder, this call is being reported. I will now turn the call over to your host, Mr. Todd Fromer, from KCSA Strategic Communications, Peace Go Ahad
Speaker Change: Thank you, operator. Before we begin today, I would like to remind everyone that this conference is called continuing certainly forward with the statements.
Speaker Change: All statements that address our operating performance, events, or developments that we expect or anticipate occurring in the future are forward-looking statements. These forward-looking statements are based on management's police and assumptions and not on information currently available to our management team.
Speaker Change: Our management team believes that these four-looking statements are reasonable, as it went made. However, you should not place on do reviance on any such four-looking statements, because such statements speak only as of the day when made.
Speaker Change: Do not undertake any obligations to publicly update or revise any further statements whether as a result of new information or future events otherwise except as required by itself.
Speaker Change: In addition, four of the statements are subject to certain risks and uncertainties that could cause actual results, events and developments to differ materially from our historical experience and our present expectations or projections.
Speaker Change: These risks and uncertainties include, but are not limited to, those describing item 1A, risk factors, and an out square in our annual report on 410K to be filed with the securities in exchange permission.
Speaker Change: and Joseph Describes from Pocket Time in the other courts, which we file with the Security and Exchange Commission. It is now my pleasure to turn the call over to Mr. Gerald Shelton, Chief Executive, Officer of Cryoport, Jerry Sifler-George.
Jerrell Shelton: Thank you, Todd. Good afternoon, ladies and gentlemen. Thank you for joining our fourth quarter in full year 2024 earnings call.
Jerrell Shelton: With us this afternoon is our Chief Financial Officer, Robert Stefanovich, our Chief Scientific Officer, Dr. Mark Sawicki, and our Vice President of Corporate Development and Investor Relations, Thomas Heinzen
Jerrell Shelton: As a reminder, we have uploaded our fourth quarter in full year 2024 in review document to our website. It can be found on the main page of the Cryoport Inc website. This document provides a review of our financial and operational performance and a general business outlook.
Jerrell Shelton: If you're not have a chance to read it, I would encourage you to go to the website and download it.
Jerrell Shelton: Now I will provide you with a brief update on our business and then we'll take your questions.
2024 was a tough year for the life sciences [inaudible]
Jerrell Shelton: The effects of macroeconomic conditions and market dynamics were felt throughout the year.
Jerrell Shelton: We adapted to the challenges and concluded the year with solid results and total annual revenues of $228.4 million, which is in line with our expectations.
Jerrell Shelton: Our life sciences services business continued to its expansion with double-digit year-over-year growth and bio-storage and bio-services
Jerrell Shelton: We saw considerable revenue growth for the support of commercial cell and gene therapies, which rose 37 and 20% for the fourth and quarter and full year respectively.
Jerrell Shelton: In our life sciences product business, we think our order patterns are beginning to show signs of stability. I would remind you that even with the downturn of the
Jerrell Shelton: As previously reported during 2024, we implemented the number of cost management initiatives in our product segment to align our operations with current global industry dynamics.
Jerrell Shelton: For the fourth quarter of 2024, Bruce Margin rose to 45.8%, compared to 40.6% in the same period last year.
Jerrell Shelton: We remain confident that these actions that have been taken are taking effect and will lead us to a return to positive adjusted of beta during 2025.
Jerrell Shelton: At the same time, we have continued to advance our most important business development plans which have been underway for some time as we strive to balance those plans with our commitment to achieving positive adjusts a bit during 2025. We're confident that these undertakings will open up new revenue streams and move us forward.
Jerrell Shelton: For example, in the fourth quarter, we opened our integral cell crop preservation solution with new state-of-the-art facilities located in Houston, Texas and Leage, Belgium
Jerrell Shelton: Integra Cell was set up to produce high-quality standardized cryopreserve starting material for the manufactured cell therapies.
More consistent, more robust, standardized product, more efficiently.
Jerrell Shelton: Integral Cell addresses a critical aspect in optimizing the splotching for the development and commercialization of cell-based therapies.
Jerrell Shelton: Another example is our Cryoport Express CROGENIC CX-HV3 Shipping System, or HV3.
Jerrell Shelton: which was introduced in January of this year. The HP-3 is a revolutionary cryogenic shipper that offers our clients enhanced payload production, storage efficiency, mobility, and accessibility.
Jerrell Shelton: With the introduction of HV3, we also improve patient accessibility to vital cell therapies in smaller cities and remote areas as it will fit into smaller aircraft. We believe this will benefit patient outcomes at large.
Jerrell Shelton: Looking forward, in 2025, we believe we are well positioned to further capitalize on the anticipated growth of the Selengy and Therapy Industry.
Jerrell Shelton: At this time, we're projecting that 23 VLAs or MMA Fowings could occur in 2025 up from 11 last year.
Jerrell Shelton: We're happy that 2025 is off to a good start as three filings have already occurred in January .
Jerrell Shelton: Cryoport's huge base of clinical trials continues to push forward and we expect to post another record amount of commercial revenue in 2025.
Jerrell Shelton: Based on all this, we're providing full-year 2025 revenue guidance in the range of $240 million to $250 million.
Jerrell Shelton: We intend to maintain our leading market positions, open up additional revenue streams, and unleash our operating leverages, market demand grows.
Jerrell Shelton: It will complement, we will complement this with seeking strategic collaborations throughout the year. We're confident that we have taken steps necessary to implement our growth plans and to reach our objectives of policy of adjusted a bit during 2025.
Jerrell Shelton: This concludes my preparatory remarks and now I'll ask the operator to open the lines for your questions.
Jerrell Shelton: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question for a 10-speed test or four-by-the-one on your telephone keypad?
Speaker Change: You will hear a prompt that your hand has been raised, and should you wish to cancel the request, please press star of Paul Betetune. If you are using a speaker phone, please lift the handset before pressing any keys. One moment please for your first question.
NS Snopkowski: Your first question comes from the line if NS Nob Kowski from Cuban Capital Markets, please go ahead.
Anna: Hi, good afternoon. Thank you for taking my question. This is Anna on for Paul Knight.
Maybe to start on the significant and impressive 37% increase.
NS Snopkowski: and Commercial Revenue, you saw on the fourth quarter. Could you walk through some of the drivers there and whether this was broad-based or maybe one commercial therapy that drove this? Thank you.
I think Mark Sawicki can best answer that question.
Mark Zowiecki: I'd be happy to answer that question so a couple of factors number one is it was a broad-based increase it wasn't it wasn't focused on one or two clients you know some of the key drivers here are
Mark Zowiecki: You know, we've seen the, you know, the advancement of earlier line approvals with some of our commercial clients. We've seen, you know, additional companies, you know, get approved. We had five commercial approvals last year. And we're starting to see contribution with multiple of those, those programs as well as well as.
Mark Zowiecki: Our historical programs continue to expand on a geographic basis, as well as, you know, either pushing for a line extension into different therapy classes and all of those contribute to that strong Q4 performance.
Speaker Change: That's helpful. And then switching to the MVE side of the business, it seems like it's often stabilization there in the fourth quarter. Do you feel confident that this will continue to stabilize or maybe even recover in 2025?
Speaker Change: We are seeing the order patterns beginning to show some signs of stability at MVE and we feel that that will continue throughout 2025. It may be uneven, but we think it will continue to progress.
Thank you.
Speaker Change: Thank you, and your next question comes on the line of Puneet Souda, some living partners, please go ahead.
Speaker Change: Maybe what are the growth assumptions you have for biologistics and also the cryogene and the MBE business within the context of guide.
Speaker Change: In the context of guidance, I think Robert will add to what I have to say Puneet, and thank you for that question, but obviously services will be a bigger portion of our guidance, and it will grow faster than life sciences products, and with that I'll turn it to Robert to elaborate more.
Speaker Change: Revenue Growth in Biostorge Biostorges Services, which was double digit, you know, the Biostorges Growth, which was, you know, 7% year over year, but then in particular on the Selon Gene therapy side, you know, the story on the growth on the commercial therapy side, that
Speaker Change: The service is business growth for products we certainly have to take a more conservative view just based on the comments that Jerry had earlier on this call to really look at very modest increases in product revenue for guidance purposes.
So it's really driven by the services side. [inaudible]
Speaker Change: Okay, that's helpful. And then, you know, there's quite a bit of discussion on tariffs just wondering, is there any impact?
Speaker Change: on the cost of the doers or freezers from any of the steel aluminum tariffs, Canada, Mexico or otherwise.
Speaker Change: And I'm just trying to understand, you know, I'm sure you've talked through that, but are there any tariffs on the freezers from the China plant or anything that is getting service from US?
Speaker Change: You know, we have thought through that. We do have Puneet and you know, whatever, however tariffs impact us and we, you know, we can't tell for sure and all of them except, you know, the direct things that we hear about, the tariffs on aluminum and stainless steel. But we will, we will pass on tariff impacts through surcharges for the period of time that they exist. And so we don't expect impact on our margin.
Speaker Change: that the management has been able to really maintain solid growth margins. So I think we have quite good control over the cost structure and the ability to ensure that we maintain in the growth margins for the MBE for the products business.
Got it, that's helpful
Wondering what's your expectation here for?
25
Speaker Change: And then, any impact from NIH in direct cuts? A number of these trials get started in academic setting and medical schools, so wondering if you're seeing any, you know, updates or impact that you're contemplating from any of those institutions. Thank you.
Speaker Change: Puneet, I'll answer the last question first, and then turn it to Mark for trial expectations. But in terms of the NIH, we have very little exposure to the situation with the NIH, so we aren't...
Mark Zowiecki: We aren't directly concerned about that at this point. Mark, would you answer the second part?
Mark: Yeah, happy to. Yeah, so as you can see with the data itself and Q4, you know, Q4 was the best performance that we've had in
Mark: I do anticipate that we will see a continued strong performance, so I would expect that 2025 will be stronger than 2024 on a new trial acquisition basis.
Mark: And Puneet, as you'll see in the review document, there's another 23 possible filings in 2025, so on the commercial side, there's a lot of activity as well, three file already in January , we expect another 10 possible approvals of which five are new therapies.
Mark: So it's a very robust kind of pipeline of activities within the zone gene therapy space.
All right, thank you.
Speaker Change: Thank you, and your next question, concern the line of Tejas Savant from Morgan Stanley , please go ahead.
Speaker Change: Hi, this is Edmund on Fatagias. Thank you for the time. Switching back to NDE, can you guys elaborate a little bit more on what you guys are seeing from your customers across your geo regions in terms of seeing early signs of stability?
Speaker Change: Well, the sons of stability are in the order patterns, and that's a collective thing.
Speaker Change: So that's as far as I can actually go and answer that question. We see you seeing sons of stability that doesn't say that everything is stable and rosy, but we are seeing those sons of stability that we like to see in that market.
Speaker Change: Got it and I'm appreciating that your presence in China has gotten smaller over the past few years to about less than 3% of your total, but I'm given the concerns on Chinese retaliations on tariffs or even if nothing has happened yet to what degree are local substitute available in the region
Speaker Change: And do you continue to think that your four China and China strategy is sufficient in securing a position in the market here?
Speaker Change: Yeah, I mean, local sources and China certainly are available and their other sources throughout Asia.
Speaker Change: and we're implementing our China strategy as we speak and that will unveil that later on. So yeah, and outside of China again, this is where Todd mentioned that we have our manufacturing facilities here in the US.
Speaker Change: that manufacture the project freezers and doers for the US market, for the European market, so in some ways we mitigate some of that risk that a lot of other companies have in the space with regards to China.
Speaker Change: Maybe one last thing to add there is that in our guide there is no assumption of a recovery from China.
Speaker Change: Got it, that's helpful. And then one last one for me. How are you guys thinking about revenue contributions from the five new therapies that were approved of in 2024 for your 2025 guidance? And with the recent layoffs at the FDA, are you starting to hear customers concerned about longer approval timelines for saline gene therapies?
Speaker Change: No, you're absolutely right. We don't break out individual contribution, although we do anticipate that multiple of the new 20, the new therapies that were launched in 2024 will contribute meaningful revenue to the commercial totals for 25. That's about as far as I can, to, to donate on that.
regarding the FDA. We do not anticipate...
Speaker Change: As a matter of fact, one of our customers today announced that they had their BLA received and have a pedophidate in August , so things keep moving forward.
Great, appreciate the time and the answers, guys.
Hi. Thank you.
Speaker Change: Thank you, and your next question comes in the line of David Saxon. If you need help, please go out.
David Saxon: Oh great, good afternoon, congrats on the quarter and thanks for taking my questions.
David Saxon: Maybe I'll start with Robert just on profitability, the PR notice or noted expectations for getting to profitability in 25. Can you just help us around specificity, when might that be either by quarter, first half, second half, and then kind of directional expectations for the year? Should we be thinking break even or any better worse? And then I'll
David Saxon: Yeah, maybe just to frame it a little bit, when we talked about Sourbeer...
Cost Measures that we took in key, you know, starting in Q2. [inaudible]
David Saxon: We've made good progress, we've implemented the majority of those activities.
David Saxon: And that really drove that consistent improvement of adjusted EBIT over the last three quarters, moving from a negative 6.6 million.
2-0, you know, negative 1.3 million for Q4.
David Saxon: on an annual July Spaces that equates to about 22 million, so that is in line with what we were targeting, actually a little bit better than what we were targeting.
David Saxon: Source's revenue as well as for the product revenue. So I think we're well on track to continue to execute. At the same time, you know, we are...
David Saxon: in the near future. So that's another aspect to consider. So I think in terms of timing of reaching a justice, we can't give you direct timing but it is our stated goal to reach that during 2025 and the timing of it really depends on so the ramp.
David Saxon: that we expect to see on the service side in particular on some gene therapy side.
David Saxon: So, you know, is that a good starting point if, you know, against the backdrop of orders or depends on being stable? Or is there any like mixed dynamic that we should?
David Saxon: You know, be aware of that would, you know, material change, kind of quarterly expectations. Thanks so much. There's no big dynamic that we can point to right now.
Okay, great, thanks.
Speaker Change: Thank you, and your next question comes on the line of Subaru Nambi from Guggenheim, please go ahead.
Speaker Change: Yes, thank you for taking more questions. One question, once a therapy is commercial, what are the drivers of revenue brought to cryoport on that therapy? Is it just volume ramp for the therapy and indication of Johnson, or are there opportunities to increase your wallet share with the manufacturer?
thank you.
Speaker Change: Yeah, we pursue both avenues. So both ramp in volume from a patient's treated standpoint as well as revenue diversification. So in many of the cases, we're seeing that both of those occur.
Speaker Change: Thank you for asking that, and you see that in the bioservices, bios storage, starting to grow, and hopefully, this year, as Mark will probably talk more later on, is that in Tejas Hell Initiative. So, these are the projects that we've invested in for years that are now starting to get some traction.
Speaker Change: Thank you for that, guys. And you did mention that you have spent 2025 to be better, but what have you been seeing with respect to bio-pharmabatic funding in 4QN? What trends are you expecting to see in 20,000?
Speaker Change: Yes, so I think there was, I think it was 15.2 billion for all of 24, which was the best year in a number of years. In fact, for Saladine Investment,
Speaker Change: You know, 25 is going to be a little bit more challenging from an expectations standpoint. You know, I think it'll be a strong year but we obviously have to see what happens with the federal government and what's happening there so I'll couch that with just a caveat.
Speaker Change: But the markets themselves are very positive. In fact, a lot of the activity we were at from a trade show standpoint and from a market standpoint, the sentiment overall is much more positive than it has been in a long time.
Tom: I'm not sure if Tom wants to add anything to that.
Correct.
Speaker Change: Yeah, I mean, we obviously, you know, based on the sentiment that was expressed at, you know, some of the, you know, JP Morgan facilitate others. It looks like it'll be a year that we believe will be positive. So, you know, I would expect hopefully that we'll see activity that's that's at par or even a little bit stronger than 24. [inaudible]
and just to make it so clarified, to move it.
Speaker Change: When you think about our guide, especially when you think about our commercial revenue, and how we're factoring that, and that has nothing to do with funding. These are from large pharma or public companies that aren't dependent on money coming in the door for their commercial ramps.
Speaker Change: Programs as well as the tightening of the clinical trial environment, but that's been winding down over the last two quarters, and I think you see that as evidence by a strong increase in clinical trials supported in Q4 much higher that we've seen last eight quarters.
Super-harp from guys. Thank you.
Thank you.
Thank you, and your next question comes on the line of David Larsen from PTIG, please go ahead.
Speaker Change: Can you talk a little bit about the gross margin expansion? I think it was up over 500 basis points year over year and a quarter, both product and service. Was that more cost reduction effort? Or was it really top-line growth or something such there would be helpful? Thank you.
Speaker Change: Yeah, not absolutely. Look, I think a lot of it is related to the cost measures that we've implemented.
Speaker Change: Yeah, in the second half of the year. So we've seen a significant improvement in the cost structure based on the actions that we have taken. And that really has helped drive the gross margins to where they are, yes, alright, on the service side. We moved for Q4.
Speaker Change: and in that model we're looking at about 30% of the electricity with a margin. So those are our targets and we're certainly going to continue to take the actions to drive gross margins. There's still some room on the cost side, but obviously we do expect the revenue growth to contribute.
to the gross margin as well going forward. [inaudible]
Speaker Change: I guess without getting too specific, Robert, would you be expecting like a mid 40% gross margin in 25? Like, is this a good steady state? The four key results?
Speaker Change: Yeah, I think there's opportunity for increase throughout the year. I think if you look at the year of 25 and the guidance we've given, we expect overall to see kind of sequential improvements.
Um.
Speaker Change: At the same time I always want to remind everyone we do have some new initiatives.
Speaker Change: that just came online like in Tegrosel, where we brought up two facilities in Leage, Belgium, and in Houston, Texas.
Speaker Change: And I see there's also going to be a little bit of a drag on that margin until they start seeing more substantial revenue come through the door. But I do expect there's some upward mobility on the margins over time. David, we have not veered from our targets that we've talked about for years. Fifty-five percent, Grossmargin, thirty percent adjusted a bit that.
Speaker Change: and those are fully in sight. We simply have the drag of some of these projects that...
Speaker Change: that we have underway, and they will, as they come online, as Robert just mentioned, they will unleash operating, operating leverage, and that will help drive our gross margin up substantially, and thereby are adjusted a bit up. So we're confident in our plan, and the way we're implementing it.
Speaker Change: The cost adjustments that we did were simply re-prioritization, some cost management required cutting where we could and it's showing it's showing it's showing our results and we intend for that to continue.
Speaker Change: Great, and then just one more quick one for integrity. Is that generating revenue right now in any sense for what the revenue contribution will be in fiscal 25?
Well, the shadow entry, it is, Mark, I could comment on that.
Mark: Yeah, so the bottom line is, yes, we have signed our first contracts with the Integral Platform in Q4 and continue to sign contracts. In this quarter, we will see some revenue contribution in Q1, although very modest.
Mark: The platform will start to use it in their portfolio, which we're very excited about.
Speaker Change: That's great. And then for MVE, any comments on large freezer, small freezer doers, I've heard the word stabilizing, is it stabilizing across all three of those categories in large freezer in particular? What you heard is order patterns are beginning to stabilize and it cuts across the company.
Okay, thanks very much, I'll hop back on the queue.
Thank you. Thank you.
Thank you, and your next question comes from the line of Freechard Baldree from Gross Capital, please go ahead.
Speaker Change: Thanks. On the integral side, can an existing clinical trial protocol be altered to adopt the integral or do you think this will be strictly on to our new clinical launches?
Speaker Change: And this is not an alteration. This is an improvement in process. It's a revolutionary improvement. And Mark, do you want to come at further?
Mark: Yeah, so obviously it's being written into quite a few new programs that are starting but it does not preclude the ability to transition if they have it in established. So, first.
Mark: Preservation Parodyne, that's written into their BLA. Yes, they can transition that into our platform. They may have to do an addendum to that but it is doable and in fact we are seeing that type of activity as well. [inaudible]
Thanks.
Speaker Change: And as commercial cell and gene therapy becomes more material to the overall business, you can talk about any underlying seasonality to that specific segment that we should be concerned about whether strength are stronger quarters, weaker quarters, whether that's based on numbers of days, holidays, things like that that we should take into consideration.
Speaker Change: Nothing out of the ordinary that we can comment on there.
Speaker Change: Yeah, there's nothing specific from a seasonality standpoint. The only impact you'll ever see is facility shutdowns. You know, where most companies will do a shutdown for the manufacturing for a week or two a year, but they're all different based on company, so it's impossible to predict those elements.
Speaker Change: We look forward, do you feel like you're in more of a sideways spending pattern until sort of the top line, you know, begins to come back up or...
Speaker Change: You know, are there some things that come in early, whether it's the two new facilities launched that bring the overall spending up maybe earlier in the year and then sort of platels as the revenues come through to get you back to profitability? Thanks.
Speaker Change: Yeah, Richard, we'll have some more some Capix expenditures related to the new facilities in California and in Paris, that's certainly the case, but I think, you know...
Speaker Change: He has to see if I can say that there's always opportunity for additional... Um...
Speaker Change: Review of how we do things and where we can potentially take additional cost actions. So I do expect us.
to really continue to look at-
Ways we can improve efficiency, ways we can reduce cost. [inaudible]
without changing the growth initiatives that we have. [inaudible]
Thanks.
Speaker Change: Thank you, and your next question comes from the line of Kyle Crews, from UBS, please go ahead.
Speaker Change: Thank you for taking the question. I'm taking a step back from Solenging Therapy and looking kind of at the broader market and the non-solenging therapy part of your services business. Can you expect how you expect that market to evolve over next year?
Mark, do you want to check that?
Journal, The Washington Post.
Speaker Change: You know, on the transportation side, I think we'll also see growth continued growth as it relates to non-celerging pharmaceutical product distribution.
Speaker Change: So who just has a growth mark maybe in IVF as well? [inaudible]
Speaker Change: Yeah, yeah, so reproductive medicine we continue to see, you know, in play a dominant role. We're making very good headway as it relates to expansion of our service platform XUS and I do think we'll see contribution from that this year in the reproductive reproductive medicine space.
Speaker Change: and as well in the animal health space. We're seeing an acceleration of clinical trial activity for companion animal self-ariby products. And we should anticipate seeing quite a few clinical trial starts in support of...
Great, thank you.
Anymore?
Speaker Change: Your next question comes in the line of Matt Stanton. Please go ahead.
Matt Stanton: Okay, thanks. Maybe let's go back to the 25 guy to appreciate you guys, you know, obviously don't give color at the...
Matt Stanton: at the specific therapy line item. We think about the commercial basket overall trying to get a better feel. I think it was a 20% for the year.
Speaker Change: High 30s for the quarter, so kind of which of those two is better for that bucket for for 2025. I think Mark historically you've talked about maybe 30% plus type growth over the next few years. So it's something in the 30% plus range fair for the commercial revenue bucket here in 2025. Thank you.
Speaker Change: I think this is fair Mark, but you want to come in on the father.
Mark: Yeah, I mean, I think we'll be stronger than 20%, which was this year from a growth standpoint with the number of new launches in the therapy expansions. I think getting into the mid-30s is probably a hair aggressive, so I think we'll probably be in the...
Speaker Change: High 20s is my guess. At this point in time, based on what we're seeing.
Super, thank you.
Yep.
Speaker Change: Thank you. There are no further questions at this time. I would now hand a call back to Mr. Jerrell Shelton for any closing remarks.
Speaker Change: Thank you, operator. Thank you all for your questions. I think we had some constructive discussions and we appreciate your interest in Cryoport.
And we finished this year with a solid fourth quarter results.
Speaker Change: that were consistent with our expectations. The results reflect the continued growth of our life sciences business, which included the revenue growth we achieved from the support of commercial sell-in gene therapy.
for a life sciences product segment. [inaudible]
Speaker Change: We're seeing what appears to be a stabilization of orders as we talked about in the question and answer period and we said before our life sciences product business is solid and continues to provide positive cash flow.
Speaker Change: Our results also show our significant progress in improving our business economics.
Speaker Change: Market Conditions in 2024 were difficult and we took actions to address this. As a result, we're beginning to see the effects of these initiatives most notably in our gross margin improvement.
Speaker Change: We continue to anticipate that these actions will guide us to a return to a positive adjusted about the during 2025.
Speaker Change: We thank you for joining us this afternoon and we appreciate the conversation, we appreciate your continuing support and your interest in our company. We look forward to updating you on our progress again as we report the first quarter of our financial results at the next fall. Thank you very much and have a good evening.
Speaker Change: Thank you, and that concludes our call for today. Thank you for participating. You may all