Q1 2025 Oscar Health Inc Earnings Call
Good morning, everyone. My name is Ellie, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Oscar Health's first quarter 2025 earnings conference call. At this time, after the speakers prepared remarks, there will be a question and answer session. If you'd like to ask a question during that time, please press star followed by one on your telephone keypad.
Speaker Change: Thank you. I will now like to turn the call over to Chris Potochar, Vice President of Treasury and Investor Relations.
Speaker Change: Enemy remarks that Oscar makes about the future constitute forward-looking statements within the meaning of safe harbor revisions under the Private Security's litigation reform act of 1995.
Speaker Change: Actual results made different materially from those indicated by those forward-looking statements as a result of various important factors
Speaker Change: including those discussed in our annual report on Form 10K for the period ended December 31st, 2024, filed with the SEC and other filings with the SEC, including our quarterly report on Form 10Q for the quarterly period ended March 31st, 2025, to be filed with the SEC.
Speaker Change: Such forward-looking statements are based on current expectations as of today. Oster anticipates that subsequent events and developments may cause estimates to change.
Speaker Change: While the company may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.
Speaker Change: The call will also refer to certain non-GAAP measures . A reconciliation of these measures to the most directly comparable GAAP measures can be found in the first quarter earnings press release available on the company's investor relations website at ir.hiosker.com
Speaker Change: We have not provided a quantitative reconciliation of estimated full year 2025 adjusted EBITDA as described on the call to gap net income because Oscar is unable without making unreasonable efforts to calculate certain reconciling items with confidence.
Speaker Change: With that, I would like to turn the call over to our CEO , Mark Bertolini.
Mark Bertolini: Good morning. Thank you, Chris, and thank you all for joining us.
Today, Oscar reported strong first quarter results.
Mark Bertolini: Our positive results were driven by continued top-line growth, bottom-line performance, and year-over-year improvements across nearly all core metrics.
Mark Bertolini: Oscar reported total revenue of $3 billion in the quarter, a 42% increase year over year.
Mark Bertolini: We also generated net income over approximately $275 million, a significant improvement of 98 million over the prior year period.
Mark Bertolini: Earnings from operations grew by 112 million to 297 million, and we improved our operating margin by 110 basis points year over year to 9.8%.
Mark Bertolini: MLR increased 120 basis points year over year to 75.4%, primarily due to a risk adjustment and true up for 2024.
Mark Bertolini: We also drove greater efficiency in the business and reported the lowest SGA ratio in the company's history at 15.8%, a 260 basis point improvement year over year.
Mark Bertolini: Our first quarter performance demonstrates the strength of our Strategic Plan, and we expect meaningful margin expansion this year.
Mark Bertolini: Scott will review our first quarter results in a few moments. First, I will cover key business highlights.
Mark Bertolini: Oscar's first quarter results put us on a solid path for 2025.
Mark Bertolini: We close the quarter with approximately 2 million effectuated members, a 41% increase year over year.
Mark Bertolini: Our solid retention and new membership growth reflect the value of Oscars' innovative data plan designs and superior member experience.
Mark Bertolini: Oscar is deepening our market presence with new partnerships that give members more value-added services.
Mark Bertolini: In the quarter, we launched Oscar Community Resources with Find Health, a social care network.
Mark Bertolini: The program connects members with local food, housing, transportation and other services beyond medical care that impact health.
Mark Bertolini: These resources will ultimately support our clinical intervention and case management programs to lower spend and improve clinical outcomes.
Mark Bertolini: Our technology is also further optimizing our operations and improving the member experience.
Mark Bertolini: The team recently launched a free live chat feature for Oscar Virtual Urgent Care, which collects patient symptoms and severity before provider engagement.
Mark Bertolini: Use the new capability to decrease member response times by 90% and draw a 28% boost in provider
Mark Bertolini: Similarly, our new AI tool for care guides is more quickly addressing member needs.
Mark Bertolini: We continue to build a scalable and efficient technology infrastructure that positions us to grow and differentiate the Oscar experience.
Mark Bertolini: Before I close, I want to talk about the current policy environment and attention on the individual market.
Mark Bertolini: CMS's proposed program integrity initiatives targeting fraud, waste and abuse are positive for the long-term sustainability of the market.
Mark Bertolini: However, rules such as the Shortened Enrollment Window will constrain America's ability to shop amid many enrollment changes for 2026.
Mark Bertolini: Many individuals are already facing meaningful premium increases if the enhanced premium tax credits expire. They deserve adequate time to shop for plans that meet their needs.
Speaker Change: Oscar advocates for constructive solutions that strengthen the individual market. We are engaged with federal and state policy makers on both sides of the aisle.
Speaker Change: The individual market is a cornerstone of American healthcare, driving a record low on insured rate and a cost trend below CPI for the last several years.
Speaker Change: Policymakers recognize the market's role in our economy and the gap it feels for their hardworking constituents.
Speaker Change: Oscar has been in this business since the ACAs inception and we look forward to building an even larger individual market for individuals, families and the business community.
Speaker Change: In summary, askers off to a solid start in 2025 are disciplined execution, strong top line growth and margin expansion position us to achieve our 2025 targets.
Speaker Change: Oscar has the talent, technology and products to continue scaling a profitable business.
Speaker Change: Oscar is one of the fastest growing players in the individual insurance market. We are creating a market place that meets consumer and employer expectations for choice, quality and affordability.
Speaker Change: Our team's ability to stay responsive to stakeholder needs and consistently execute in dynamic markets will continue to unlock new pathways for growth.
Speaker Change: Before I hand the call over to Scott, I want to thank the Oscar team for their dedication and commitment to our members and partners.
We look forward to delivering strong results in 2025. Scott?
Scott: Thank you, Mark, and good morning everyone. We delivered strong financial results in the first quarter in line with our expectations.
Scott: Total revenue increased 42% year of year to 3 billion in the first quarter driven by higher membership.
Scott: We ended the quarter with more than 2 million effectuated members, an increase of 41% year over year, and 22% sequentially.
Scott: Membership Growth was driven by strong retention above market growth during open enrollment and SEP member additions.
Scott: We had approximately 1.9 million paid members at the end of the first quarter.
Scott: As expected, we experienced minimal churn from members who failed to file in Reckonsaw.
Scott: The first quarter medical loss ratio was 75.4% and increase of 120 basis points here of a year.
Scott: The first quarter MLR was impacted by 31 million of unfavorable prior period development. As an increase to our 2024 risk adjustment payable, was partially offset by favorable claims run out from the prior year and a CSR recovery.
Scott: On a year-of-year basis, the impact was approximately 60 basis points.
Scott: Turning to utilization. In the first quarter, we saw a higher impatient utilization that was partially offset by favorable pharmacy.
Outpatient and professional, we're largely in line with our expectations .
Scott: Switching to administrative costs, we continue to deliver meaningful improvement in the SXPANTS ratio.
Scott: The first quarter SGNA expense ratio improved by 260 basis points year over year to 15.8%, the lowest quarterly SGNA expense ratio in the company's history.
The year-over-year improvement was driven by fixed-cost leverage.
Lower Exchange V Rates and Variable Cost efficiencies [inaudible]
Scott: Our strong first quarter results position us to deliver meaningful margin expansion this year.
Scott: Earnings from Operations was $297 million, a significant $112 million increase year over year.
Scott: Operating margin was 9.8%, 110 basis point increase year-of-year .
Scott: Net income was approximately $275 million, a significant $98 million increase year-of-year.
Scott: Adjusted EBITDA was 329 million in the quarter, also substantially improved by approximately 110 million year-over-year.
Scott: Shifting to the balance sheet, our capital position remains very strong. We ended the first quarter with approximately 4.9 billion of cash and investments, including 150 million of cash and investments at the parent.
Scott: As of March 31st, 2025, our insurance subsidiaries had approximately 1.5 billion of capital and surplus, including 907 million of excess capital, which was driven by our strong operating performance.
Turning now to 2025, Full Year Guidance [inaudible]
Scott: Based on first quarter results, we are reaffirming all of our full year guidance metrics.
Scott: We continue to expect total revenue in the range of 11.2 billion to 11.3 billion in 2025.
Scott: While membership at quarter end exceeded our expectations, our outlook now contemplates the end of the monthly SEP for those at or below 150% of FPL.
Scott: Collectively, these updates resulted in no change to our full-year revenue outlook.
Scott: Turning to medical loss ratio, we continue to expect the MLR in the range of 80.7% to 81.7%.
Scott: On administrative expenses, we also continue to expect an SGNA expense ratio in the range of 17.6% to 18.1%.
Scott: We continue to expect earnings from operations in the range of 225 million to 275 million.
Scott: As a reminder, we would expect adjusted EBITDA to be roughly $140 million higher than Ransom Operations.
Speaker Change: With that, I will turn the call over to the operator for the Q&A portion of our call.
Speaker Change: Your first question comes from the line of John Ransom of Raymond James. I played that course
John.
Speaker Change: Hello. John , do you have a question? Oh, sorry. I didn't think I was in the queue. They tell me I went into the queue. Yeah, just cleaning up a little bit the numbers. What? Yeah, the two million membership you into the quarter with. Well, how should we think about that number for the second quarter and for the rest of the year?
Yeah, good morning.
Speaker Change: You know, membership in the first quarter had a couple dynamics, so first of all we saw really strong payment rates.
Looking forward, I would expect that, you know, our [inaudible]
Speaker Change: We'll see membership trend up in the first half of the year.
Speaker Change: Continuous SCP for individuals that are at or below 150% of the federal poverty level that we would see membership then trend down in the back half of the year. And so net net I end up kind of in the same place as what we were expecting when we gave our guy to begin the year.
Speaker Change: So in other words, a million eight by the end of the year but trending up and then trending back down.
Speaker Change: Yeah, I think that's, you know, about where we would expect to finish the year.
Okay, thank you.
Speaker Change: Again, if you'd like to ask a question, please press star, followed by one on your telephone keypad. Please limit your questions to one question and one follow up. Your next question comes from the line of Stephen Baxter of Wells Fargo, your line is now open.
Stephen Baxter: Hey, good morning and so the question just wanted to ask first on the grace period membership. I think it would be
Speaker Change: Really helpful to potentially get some context around, you know, as we try to think about what percentage of your membership that represented during the quarter and what that might look like for maybe what would consider maybe a more recent period kind of normalized number.
Speaker Change: Just so we can think about how much larger that is, and then obviously to the extent that, you know, that's a more contribution positive part of your book Maybe you can help us just think about how that kind of works its way into the MLR seasonality for the year and then. [inaudible]
Speaker Change: Secondarily, I just wanted to get an update on risk adjustment. I mean, you provided a net impact on the press release in terms of the 2024 tour up. Maybe you could also provide us just the risk adjustment item in isolation and then just remind us how that's informed and how you're thinking about 2035 risk adjustment. Thank you.
Okay.
Speaker Change: You know, as you start the year, you have a portion of that membership, which, you know, is getting
Speaker Change: Otto Renude, and we would expect to see those people, you know, in their grace period.
as of April 1st.
Speaker Change: which is why we kind of shared the the difference between effectuated and paid membership. We've seen paid really perform well and
Speaker Change: You know, I would expect that in the second quarter, we would see the gap between Pades and effectuate, between effectuate and Pades, you know, to be a normalized level. And frankly, it was closing in on that as we ended the first quarter.
PPD was a 30 million net unfavorable in the quarter.
The increase to the risk adjustment was 92 million.
Speaker Change: which was offset by favorable claims run out with the other factors mostly offsetting, and that was about 60 basis points of the increase in the year of year MLR. The rest of the increase in the year of year MLR was mixed related.
So, those are the drivers, Stephen.
Speaker Change: Your next question comes from the line of John Young, of UBS, your line is now open.
Julie, thanks for the question here.
John Young: Just on new versus repair members, is there anything of note between the utilization patterns between the two? And on impatient, I'm assuming that may have been fluid driven in your comments there, but anything else, anything to parse out there and comment on. And then on the better than expected pharmacy, that's a little different than kind of, I think, just generally and broadly, the comments we've heard across space, anything of note there. Thanks.
Yep.
John Young: We're seeing a continuation of some of the trends that we saw at the end of last year, which is higher inpatient utilization with favorable pharmacy, you know overall utilization was above our expectations.
John Young: And, you know, we didn't see any specific driver of conditions that really was driving impatient. You know, we had some flu, but nothing that would be outsized.
John Young: You know, overall at this point in the year we're at about 15% of claims completion so it's pretty early for us to draw any conclusions about utilizations.
John Young: Utilization, I would say that we are expecting that, you know, the elevated utilization is going to mostly be offset by risk adjustment. [inaudible]
John Young: The other thing I would say is that we always start the year with a list of
Actionable Initiatives that, you know, we-
John Young: would expect to be able to pull to decrease medical costs and we don't include those levers in our guidance. And we're actioning on those initiatives at this point, you know, to offset any potential headwinds from the increased utilization that we've seen.
Speaker Change: Great. So I may ask, just one of your compares is exing the exchanges in 26, kind of how do you think about the opportunities and risk around that, around this and what it may be for you? Thanks.
Speaker Change: I'm Mark here. We view this as both sad and as an opportunity. We hate when competitions less than in the marketplace. We believe that's appropriate. The more people we have in the more opportunities for people to find the product that works for them. However, in this circumstance, we have.
Speaker Change: Fairly significant overlap with this competitor and we view that as an opportunity come 1126 to help people maintain their coverage at a level of pricing that we find disciplined and competitive in the market.
Thank you.
Speaker Change: Thank you. Again, if you'd like to ask a question, please press star followed by one on your telephone keypad. That star followed by one on your telephone keypad. We will pause for a brief moment to wait for the questions to come in.
Speaker Change: Our next question comes from the line of Joanna, the Duke of Bank of America. Your line is now open.
Johanna Dajouk: I guess those high level questions on the regulatory environment. So first you alluded to this proposal that came out at early March.
Johanna Dajouk: I did it would include a couple of these different items in there. So any any kind of thoughts?
Johanna Dajouk: You know, which of these four versions would be finalized, sounds like you don't agree with, uh, when most of them are I guess, because all and all these items together, CMS had estimated, it would have reduced enrollment on exchanges by three to five. [inaudible] I'm sorry, I'm sorry
and percent, so could be, you know, [inaudible]
Speaker Change: Someone with material, right? And then related topic to that, you know, any updated thoughts on people in Congress then on extending the enhanced subsidies on exchanges? And can you remind us the percentage of your exchange book that is fully subsidized? Thank you.
Speaker Change: Thanks, Joanna. I'll talk first to the enrollment changes that were made. I want to remind everybody that a number of these programs were unintegrity were put
in Midway through 2024. So, we've seen...
some of the fact of that already.
as we've reviewed and commented.
Speaker Change: on the terms of the proposed regulation. We believe it's really important that we support CMS's effort to strengthen the integrity of the ACA and foster stable risk pool. So we want a market we can trust.
Speaker Change: We're enrolments are real and that we're taking care of real people so we're fine with all of that.
The one issue that I mentioned during my comments.
Speaker Change: is that the shortened enrollment period does not allow for enough shopping for individuals and brokers. We'll have to both comply with.
Speaker Change: These regulations and in the term of this last question are on a competitor find a new place to get coverage and so we think they should really seriously consider extending those enrollment periods. Thank you very much.
Speaker Change: which of these things we expect to go forward. We, as I mentioned in my prepare remarks in one of the questions we do expect that.
Speaker Change: The new rule and what may happen with subsidies so you know those are all kind of blended together so we're not gonna at this point make any comments about how 2026 may run forward.
Speaker Change: And then your question with respect to what portion of our book is fully subsidized. I would say that Oscar has always had a significant portion of our membership that receives some or full subsidized amounts of premiums.
Great. Thank you.
Speaker Change: Your next question comes from the line of Jeff Raskin of Neffron Research. Your lightest network.
Josh Raskin: Hi, thanks. Good morning. I want to just follow up on the competitor exits. I'm just curious when you see this historically are those generally good members to attract, meaning you know medical management versus risk adjustment and then how do those large exits impact your estimates of risk adjustment. Thank you very much.
Josh Raskin: And then my bigger picture question is just I'd be curious to get any progress on the IKRA market to sort of in general just sort of environmental progress. And you know, are you talking to large employers even about 2026 and maybe where are we in that cycle.
Speaker Change: Great, thanks, Josh. First, and foremost, let me talk a little bit about Iqra. On the Iqra front, we believe that there is increased momentum. We're starting to see larger groups.
Speaker Change: in the middle market space starting to get interested and talk to us about the opportunity. We have introduced through our House Ways and Means Committee testimony the idea of this tax. [inaudible]
credit issue that needs to make the level. [inaudible]
Playing Field for employers. [inaudible]
Speaker Change: and we believe that that has some opportunity to get pushed through on this next bill. So we believe once those kind of conditions are in place that the momentum will continue to build we have talked to large employers and I was in a room with large employers.
Earlier this week.
Speaker Change: Where there's a lot of interest expressed. I was invited to speak about my comments on CMBC about, you know, the best way to solve healthcare problems is to eliminate the employer sponsored health insurance market, and I gave the reasoning behind all of that, which I'm you we've shared with you before Josh and we believe that that's an opportunity it will be slower.
Speaker Change: because there's always resistance in these staffs, but we think that's that's it continues to be a very important market. And then on your first question, I lost your [inaudible]
Point, if you could just sort of remind me quickly.
Speaker Change: Mark, the competitor exits are, you know, when you get members from other plans that have
Speaker Change: Well, the good thing is, is that risk adjustment levels and playing field for everybody at the end of the year, so it's how you go into the market price.
Speaker Change: And again, we don't underwrite these markets. So as long as we believe we have discipline pricing in the marketplace and the risk adjustment continues to work effectively the way it has that we'll be fine in those markets and growing the membership.
Speaker Change: Exiting more importantly is that they got behind on their margin and behind on their pricing. It's really hard to catch up.
Speaker Change: Unless you price way up, which other competitors have done in prior years.
but in this...
Instincts, they tried to move up slowly, didn't get them.
Speaker Change: All the way there, and as a result, they need decks at the market. And we think that's their pricing problem, not ours. Again, with risk adjustment, we think we're fine. And generally, if people are, you know, it'll be a mix that is consistent with the marketplace.
All right, each market individually. Right.
Speaker Change: Your next question comes from the line of Jessica Tassan of Pi Per Sandler, your line is now open.
Jessica Towson: Hi, thanks for taking the question. I just wanted to start with, is your expectation for 2025 still that risk adjustment payable as a similar percent of premiums as it was in 2024? And if not, can you give us an essence of any updated expectations on the risk adjustment as a percent of premiums?
Speaker Change: Yeah, thanks, Jess. Why don't I make a couple of little comments about seasonality for a couple different components of the book. So.
Jessica Towson: with respect to risk adjustment, no significant, you know, it's no-
Speaker Change: A significant adjustment at this point in time, although, you know, if we see elevated claims continue that would tend to push down the risk adjustment as a percentage of revenues, so we'll have to see how that plays out.
on MLR seasonality, you know,
Speaker Change: I would expect that MLR seasonality will be a little bit flatter in the second, third and fourth quarter than what we've seen historically. So, you know, a step up in the second quarter with the fourth quarter being the highest.
Speaker Change: and then with respect to SGNA seasonality, you know, we still expect to see gradual increases in the SGNA expense ratio each quarter.
Speaker Change: Got it. That's helped. And then just, I guess, thinking about next year and the several alternative options, can you give us a sense of the margin profile of Rollins plans, both MLR and then just
Speaker Change: interested in the S-GNA as a percent of premiums there, and whether you have an opportunity to kind of maintain flat margins despite the potential for downward mixed shifts.
Speaker Change: Jess, I would say that we're not yet going to be given any information about 2026.
Speaker Change: I would say is we're working on our pricing, you know, we're our intent is to continue to grow margin for this company and so we'll be looking at a pricing strategy that'll have discipline pricing that'll allow us to, you know, continue to take share and improve margins. So that's what we're focused on for 26.
Speaker Change: and I would add that there's relatively high overlap between the enhanced
Speaker Change: premium tax credits and fraudulent and the integrity regulations have been put in place. So depending on how those both settle out and what the details of each of them are, is going to largely depend on what the mix is going to do. Relative to pricing versus morbidity.
Scott, thank you.
Speaker Change: Your next question comes from the line of Michael Ha, of Baird, your line is now open.
Michael Ha: Alright, thank you and congratulations on the quarter, historic Chimey Apprent.
Achieving 16% two years early, before 27.
Speaker Change: With that said, I was wondering if you could elaborate more on the drive ratios.
Speaker Change: GNA Performance, how much of the beat would your tribute to fixed cost leverage versus the lower exchange fee rate versus the variable cost efficiencies?
Josh Raskin: I think Jess asked it, but in terms of the cadence and the seasonality of GNA through at the remainder of the year, just giving us strong apprentices.
Speaker Change: I just try to understand how durable this level of GNA is going forward and again the source of the beat as well. Thank you.
Yeah, appreciate the question. And in terms of
Speaker Change: You know, a big step forward and our cost trend honestly is just a great story. Our tech is playing a big part of driving the performance and we've been, you know, very focused and disciplined about expense management both on the fixed side and the variable side.
Speaker Change: and those are the primary drivers of the year of your improvement just to give you some specifics. Fix cost leverage is about 40% of the improvement.
Improvements in our variable cost structure is another, you know,
Speaker Change: Let's call that 15% and then the remainder is improvements in broker taxes and fees. We did see some lower fees this year.
Speaker Change: and then the remainder is our agiography. So, a very significant portion of the year of your improvement is durable. And as I mentioned on the last question, we do expect to see from this.
Speaker Change: Point that we would see some, you know, quarterly increases in SGNA going forward.
Speaker Change: Michael, as we said before, when we put together our operating plan, we have a number of different lovers we pull as we go through the years, so we're already reacting to 26.
Speaker Change: and setting the stage for 26, depending on how it all pans out, and we're making those moves ahead of time, so that we're prepared to be competitive and to continue our move forward in the Hansi margin for the business.
Speaker Change: Great, thank you, and I follow up a question. So if I take a step back and think about Oscar evaluation over the past few months, I think it's clear investors are pricing in the worst case scenario, you know, millions of fraudulent lives in the marketplace. But with all the evidence and proofs just continuing to staff.
Speaker Change: Number one being required at test stations, helping to address the ghost member issue. Number two, at the non-payment of premiums, now reflected in one cue, affects where the enrollment number three, CMS even gave us the two year FCR members at risk nationally.
Speaker Change: with all these new data points. Could you refresh us on your latest thoughts here and I get your level of conviction that what we're in is no longer a four or five million fraudulent member of the problem. And also how do you view the catalyst path going forward in terms of what will take the fully dispelled this proof? [inaudible]
This debate won't end for all. Thank you.
Speaker Change: We're not going to size the government's estimate. We're doing our own homework as we get ready for 26.
We'll have a very clear view on it.
Speaker Change: but I can tell you that we are not backing off on our long-term targets. We continue to...
Speaker Change: Work as an organization to make those happen, we believe the market will continue to be competitive and we believe the market will continue to be strong. We may have a pricing issue as we get into the 2026.
Speaker Change: Market versus where we've been, which is below CPI, at or below CPI, largely because there's a high single-digit impact of both integrity regulations and enhanced.
Speaker Change: Premium credits that will be the basis before we apply trend going forward.
So that could be a major change.
Speaker Change: It would have an impact. We believe that now that we sit at 8% uninsured, that we could get back into double digits, if that should happen. But we're watching all of that happen in front of us. And until the regs are really clear and specific, we're not going to make any estimates against 26.
Speaker Change: Our final question for today comes from the line of Dave Windlink of Jeffries. Your line is now open.
Dave Wendley: Hi, thanks for taking my question. Mark, you may have obviated my question with your last point, but I was going to ask about the proposal to refund
Dave Wendley: CSRs, and what your thoughts are around that is that is that positive relative to integrity and how much disruption to kind of the pricing structure of second low silver, etc. if the government kind of steps in and refund CSRs, thanks.
Dave Wendley: Dave Vellak, I would say that with respect to CSR and silver loading.
Dave Wendley: I think practically speaking, that's a big undertaking for plans to try to put into place the processes and infrastructure and the same for the government in terms of their side. And so, you know, we're, we're.
Dave Wendley: Obviously not a fan of that going into place for 26 because we think it's going to take, you know, a fair amount of process to get that set up and you know in theory. [inaudible] to get that set up and you know, a fair amount
Dave Wendley: that neutral, you know, we should all be neutral to that switch. And we'll just have to see how that plays out. But again, we think it's a fairly big undertaking. So, you know, we will be recommending that the government not move forward with that in 2026.
Speaker Change: I got it to your point, we're in May, so bids aren't that far away, a lot of undertaking for a couple of months where the time I guess is the added point.
Yeah.
Thanks for taking my question.
Speaker Change: That concludes today's conference call. Thank you for your participation. You may now disconnect. Goodbye.