Q1 2025 Forrester Research Inc Earnings Call

. . . . . . . .

Speaker Change: Good afternoon, and thank you for standing by. Welcome to Forrester's first quarter, 2025 conference call. At this time, all participants are on the listen only mode. After to speak as presentations, there will be a question and answer session.

Speaker Change: Please be advised that today's conference is being recorded. I would not like to turn a conference over to Vice President of Corporate Development and Investor Relations, Ed Bryce Morris. Please go ahead.

Thank you, and hello everyone, thanks for joining today's call.

Speaker Change: Earlier this afternoon, we issued our press release for the 1st quarter 2025

Speaker Change: If you need to copy, you can find one on our website in the Investor section.

Speaker Change: Here with us today to discuss our results, a George Colony, Forrester's Chief Executive Officer and Chairman, and Chris Finn, Chief Financial Officer. Carrie Johnson, our Chief Product Officer, and Nate Swan, Chief Sales Officer, are also here with us for the Q&A section of the call.

Speaker Change: Before we begin, I'd like to remind you that this call will contain four-looking statements within the meaning of the Private Security's litigation reform act of 1995.

Speaker Change: Weren't such as expects, believes, anticipates, intends, plans, estimates, or similar expressions are intended to identify these forward-lifting statements.

Speaker Change: These statements are based on the company's current plans and expectations and involves risks and uncertainties that could cause future activities and results of operations to be materially different from those set forth in the forward looking statements.

Speaker Change: Factors that could cause actual results to differ are discussed in our reports and filings with the Securities and Exchange Commission, and the company undertakes no obligations to publicly update any forward looking statements, whether as a result of new information, future events, or otherwise.

Speaker Change: Lastly, consistent with our previous calls, today we'll be discussing our performance on an adjusted basis, which include items affecting comparability.

Speaker Change: While reporting on an adjusted basis is not in accordance with GAP, we believe that reporting numbers on this adjusted basis provide a meaningful comparison and an appropriate basis for our discussion.

Speaker Change: You can find a detailed list of items excluded from these adjusted results in our press release, and with that I'll hand it over to George.

George Colony: Good afternoon, and welcome to Forrester's first quarter earnings call. I'll be joined today by Chris Finn, our Chief Financial Officer, who, following my remarks, will provide an update on our financial performance in the quarter.

George Colony: While the company has completed the transition to Forrester Decisions, its challenges persisted in the first quarter with decreases in most revenue and contract value.

George Colony: That said, the company showed healthy cash flow in the quarter and earnings per share in operating margin exceeded consensus.

Speaker Change: The last mile of the Forrester Decisions transition is optimizing our go-to-market motion to match our product platform.

Speaker Change: The company sales force continues to mentor its processes and methodology to reach higher level executives, whom Forrester Decisions was designed to serve.

and expand the number of personas served within accounts.

Speaker Change: Sales activities and sales pipelines are increasing month on month, and I expect this trend to continue throughout the year, improving our performance as we progress through the quarters.

Speaker Change: Economic uncertainty emerged in the quarter, and we are planning forward to persist throughout the year.

Speaker Change: Well, the US federal government makes up less than 6% of our contract value. We have had several contract cancellations associated with the Doge efforts in Washington.

Speaker Change: To date these have been minimal, but we expect renewals and new business in the government sector will remain tight throughout the year given the administration's posture.

Speaker Change: Sheriff's imposed by the U.S. government are driving hesitancy in the part of buyers, something that we encounter most predominantly in our Asian and European businesses in the first quarter.

Speaker Change: As with COVID five years ago, the lack of certainty is resulting in budget tightening, increased sourcing attention and spending pauses, especially in the most impacted vertical markets, such as discrete manufacturing and retail.

So how are we responding to these challenges?

Speaker Change: Late in the first quarter, we launched a new wave of research focused on helping companies manage through volatility [inaudible]

Speaker Change: This stream covers a number of different personas and topics, including B2C and B2B Marketing.

Technology, Cybersecurity, and the workforce.

Speaker Change: The research doubles down our traditional focus on lowering risk, optimizing spending, simplifying technology stacks, attenuating cloud costs, sharpening contract negotiations, and prioritizing critical customers.

Speaker Change: Our volatility research has been the most red in our portfolio over the last four weeks and it is the second highest topic in guidance sessions in guidance sessions.

Speaker Change: In the government sector, we are using the doge disruption to unlock departments that were essentially no bid, in other words dominated by one supplier, finding new ways into these previously locked out accounts.

Speaker Change: As part of the government department reorganization plans, there has been a greater focus on AI and cybersecurity in the government. Two areas of strength for Forrester. We will use these topic areas to penetrate more accounts in Washington.

Speaker Change: We continue to expand our research and artificial intelligence across all 14 of the Forrester Decision Services.

Speaker Change: In addition to our coverage of generative AI, we've expanded our research in the agentic AI space and this is the technology that will vastly change the landscape of large corporate systems over the next five years.

Speaker Change: Well, technology vendors are moving quickly in the space. We are now working with many of our user clients as they develop their first significant applications using generative and agentic.

Speaker Change: Forrester's artificial intelligence quotient is being used by our clients to pinpoint gaps in their knowledge and expertise, which our research can fill.

Speaker Change: As I've talked about on previous calls, we are the only research company of scale that has built its own large language model to serve its clients, Isola.

Speaker Change: A key part of Forrester's value is providing buying assistance to our clients who rely on our unbiased research to guide them to the best vendor for their applications and environment.

I'm surprisingly finding vendors of the top use case, Rizolo.

Speaker Change: Nearly 40% of Isola prompts submitted by our Technology Client Executives are questions about vendors or products in a specific market. Isola can surface these customized answers within seconds, improving the experience for our clients and streamlining our internal operations.

Speaker Change: We continue to expand as all those capabilities, with the LLM now incorporating our consumer and tech graphics data and a wave of value of research.

Speaker Change: In the first quarter, we enabled clients to use Isola to converse with individual reports, making it quick and easy for our clients to access our frameworks and models.

Speaker Change: Given our broad coverage of AI in the deployment of Isola, we believe that we are now the leading AI research company.

We continue to improve Forrester Decisions.

Speaker Change: We launched expanded access, which provides a water breath of content for Forrester Decision's clients .

Speaker Change: We've seen strong adoption among our clients, the majority of new FD bookings in Q1 were in this format.

Speaker Change: Forrester Decisions contains extensive data drawn for a business and consumer checking graphic studies.

Speaker Change: In the quarter, we launched a new interactive data tool that enables clients to query service sets by vertical markets, demographics, and geography.

Speaker Change: So to conclude, while the start of the year did not meet our plan and economic instability has presented new challenges, we are pleased to be operating with one power platform, Forrester Decisions, which we believe can help our clients through these uncertain times.

Speaker Change: Thank you for being on the call, and now I'd like to pass it off to Chris Finn, Forrester's Chief Financial Officer. Chris?

Chris Finn: Thanks, George, and good afternoon, everyone. Our first quarter results reflect on the macroeconomic and geopolitical uncertainty in the marketplace, with our CV research business impacted in our consulting business showing mixed results.

Chris Finn: Despite these uneven results, we continue to manage our costs closely and deliver operating margin and EPS above-consensus estimates. Furthermore, we delivered positive free cash of this quarter of $26.1 million on the back of prudent cash management.

Chris Finn: Q1s are a 7% CV decline in the quarter, and based on an expected ongoing challenging operating environment, we're now expecting CV to be flat to settle down for the year.

Chris Finn: Although this market is challenging, we see areas of opportunity and are actively working on several initiatives to improve our performance, including ongoing retention work, focus on the user and government portions of the business, and pricing and packaging augmentation of our portfolio aimed at broadening the market for our products. [inaudible]

Chris Finn: One retention area where we are seeing positive momentum is in multi-year contracts. We hit 73% of CV in multi-year contracts in Q1 in all time high.

Chris Finn: For the total company, we generate $89.9 million in revenue compared to $100.1 million in the prior year period, which is an overall revenue decrease of 10%.

Chris Finn: As we noted on our Q4 call, we expected revenue to decline this year due to the bookings to the Clives, we experienced in 2024.

Chris Finn: The ongoing government efficiency efforts by the current administration have had a small negative impact on our first quarter results. However, our overall federal government business is less than 6% of total contract value. Therefore, we anticipate that any potential future contract cancellations by the government will be a slight headwind in 2025.

Chris Finn: More broadly, although we believe that economic volatility will be a constant theme throughout 2025, and this caused some clients to trim, spend or hold off on moving forward with projects in Q1, overall clients continue to need guidance navigating through these volatile times and forestry as well positioned to assist them.

Chris Finn: In terms of our revenue breakdown for the quarter, research revenues decreased 11% to the first quarter of 2024 with revenue from our subscription research products down 6%. Couple with decline in our reprint and our other small and discontinued products, including feedback now, which we divested last year.

Chris Finn: Client retention of 73% was flat and has remained at this level for the last three quarters. However, while it returned to its down three points, to 86% from 89% in the prior quarter.

Chris Finn: Walt Retention is a combination of dollar retention and enrichment. Dollar retention has remained at consistent levels, but enrichment dipped this quarter, reflecting the budgetary and macroeconomic factors I discussed earlier.

Chris Finn: Our consulting business posted revenues are $21.4 million, which was down 7% compared to the prior year. The consulting product line was down this quarter, but advisory had a strong quarter with single digit growth compared to prior year.

Chris Finn: We expect the ongoing market uncertainty and the government cost-cutting to impact the consulting business through O2025, and finally, regarding our events business, revenues were insignificant this quarter and in the prior year as we did not hold any events during these periods.

Chris Finn: Continuing down our P&L on an adjusted basis, operating expenses for the first quarter decreased by 10%, primarily driven by lower compensation and related costs. Specifically on headcount for the first quarter, we were down 11% compared to the same period in 2024. We continue to monitor headcount, hiring and attrition very closely.

Chris Finn: Operating income, decreased by 27% to $2.5 million or $2.8% of revenue in the current quarter compared to $3.4 million or $3.4% of revenue in the first quarter of 2024 [inaudible]

Chris Finn: Interest expense for the quarter was 0.7 million dollars, down slightly from the 0.8 million dollars in the first quarter of 2024.

Chris Finn: Finally, net income in earnings per share decreased 28% and 21% respectively, compared to Q1 of last year, and net income at $2 million in earnings per share at 11 cents for the current quarter, compared with net income of $2.8 million in earnings per share of 14 cents in the first quarter of 2024.

Chris Finn: Looking at a capital structure, first quarter cash draw from operating activities, was $26.7 million, and capital expenditures were $0.6 million.

Chris Finn: We did not pay down any debt, nor did we repurchase any shares in the quarter. We have approximately $80 million of our stock repurchased authorization intact. Our balance sheet is strong, with cash at the end of the quarter of over $134 million and debt of only $35 million.

Chris Finn: I want to take a moment to discuss the goodwill impairment charge of approximately $84 million that we recorded this quarter. This non-cast charge was required solely from the fact that a stock price declined significantly during the first quarter, without market cap falling below our book value.

Chris Finn: When this occurs, the county guidelines require a right down every goodwill. The charge does not anyway reflect lower expectations from us regarding the long-term future of the business.

Chris Finn: Moving on to guidance for 2025, our guidance remains unchanged at this stage. So let me provide some additional commentary on the outlook for the year.

Chris Finn: For 2025, we expect revenue to be $400 to $415 million, or down 4% to 8% versus 2024.

Chris Finn: The revenue outlook is driven by last year's bookings decline, which hamperes first half growth, with better performance anticipated for the second half. Additional volatility has been added to the economy in recent months, but we continue to forecast the research, consulting and events businesses, all to be amid single digit decline for the year.

Chris Finn: We expect our operating margins to be in the range of 8% to 9% for 2025, and interest expanse to the expected to be $2.7 million for the year, and we are guiding to a full-year tax rate of 29%. Taking all of this into account, we would expect EPS to be in the range of $20 to $1.35 for the full year.

Chris Finn: 2025 is proving to be a volatile year with government efficiency efforts and tariff uncertainty likely to impact all corners of the economy. However, far as it has proved time and again that it is the ideal partner for companies navigating uncertain times.

Chris Finn: We enable clients to do more or less and optimize costs without sacrificing AI ambitions, to lead businesses and teams through change with confidence, and to prepare companies for whatever new risks and emerging threats come next.

George Colony: Thank you all for taking the time today and with that I will hand the call back to George.

Thank you, Chris.

Speaker Change: Before we move on to Q&A, I'd like to restate where we stand.

George Colony: Well, we had anticipated a more pleasant economy for the year that is not in the case, and we are ready for any eventuality.

George Colony: We have the right research for our clients in a time of volatility, we are the AI research company, we are looking to take advantage of the changes in the US federal government, and we continue to improve Forrester decisions.

George Colony: We are on the side and by the side of our clients in these turbulent times.

George Colony: And this is evident in our client engagement data as the number of advisory guidance and increased sessions have increased from the fourth quarter of 2024.

George Colony: We remain diligent in our work on completing the last step of our transition, ensuring that our go-to-market system is best position to sell and serve our power research platform. So with that, I'll hand the call back to the operator for questions.

Thank you, sir.

George Colony: As a reminder, to ask a question, you will need to first start 1-1 on your telephone.

To rejore your question, please first stall one one again.

Please stand by while we compile the Q&A roster.

Speaker Change: And I show our first question comes from the line of Andrew Nicholas from William Blair. Please go ahead.

Hi, good afternoon. Thanks for taking my question.

Speaker Change: First, I just kind of wanted to ask a little bit more about guidance. I think...

Speaker Change: George, you mentioned first quarter being a little bit below plan. Obviously macro uncertainty is a bit more elevated versus when we last spoke. Just kind of...

Speaker Change: Wondering what gives you conviction in the maintain guidance given the more disruptive environment. And then also

Speaker Change: I apologize for the multiple question, but if we're talking about what went below planning the first quarter, was that more macro budgetary driven, or is there some government had wind in that number as well?

Chris Finn: Yeah, yeah, Andrew, this is Chris. Yeah, from a guidance perspective.

Chris Finn: We got on revenue which is fairly conservative on the bottom end in the beginning of the year.

Chris Finn: We talked last time in the last call, so look at this juncture, it's early in the year.

Chris Finn: There's a lot of possible scenarios that can unfold. We do have a little bit of favorable foreign currency. Obviously in that number, it's about one point on our outlook based on the dollar. And, you know, look, we're being more mindful of earnings, margin and cash flow.

Chris Finn: and we're preparing to enter a cost for me in line with the top line as we move forward. And so, you know, this outlook obviously is in a recessionary outlook, so that's why we're maintaining the guide. I mean, if things do get considerably more challenging and worse.

Chris Finn: You know, with the tire for the dough situation, obviously we would change the guy but at this juncture, I mean I think look we see some opportunity on the government side. We did have about 2 million cancellations in government so far but like we said it's. [inaudible]

Approximately less than 6% of our overall business.

Chris Finn: and we do see some opportunities there. We've identified by account where the risk is on the government side and we'll see you both.

Chris Finn: It's probably one and a half to two million additional risks in the back half and we have new leadership as well on the government side which I think they can talk to.

Chris Finn: which we've got some high confidence in around those relationships that have come with that new hire and so I think overall on the guide, I think we are just pretty conservative down the middle right now and we're trying to balance our opportunity with risk.

Speaker Change: Hey Andrew, it's Nate Swan, so did hire a new leader in January , he's doing a great job with that team, got him very focused on

Nate Swan: Building Pipeline and making sure that they are working with the appropriate mission leaders within the government We are

making sure that are...

We're focused where we can win.

Nate Swan: We also see opportunities across the state and local government as well to compete, so while we're not taking our eye off of the federal government, because we still think there is opportunity to win there, I'll speak to that in a minute [inaudible]

Nate Swan: We are focusing on state and local business and I have seen some good success so far getting on some

Nate Swan: some vehicles to go through some purchase. So I feel confident about that. As George mentioned in his prepared remarks, the government is focused on AI and cybersecurity and we are really good in that space. So we're making sure that they understand our capabilities.

Nate Swan: And how we talk about them with Angola, as a really as a leading force for us.

Nate Swan: The way, we can help people get answers quicker is really appealing to our government contact so.

Nate Swan: Yes.

Nate Swan: We're not out of the woods, we still have a lot too.

Nate Swan: Due on that space, but we believe that we have potential in the federal space in the state and local space and we're actually seeing government wins around the world as well.

Speaker Change: Great. Thank you I appreciate the color and then for my follow up again, I think George mentioned.

Nate Swan: Evident.

Nate Swan: Progress with the sales force and reinvigoration and execution pipelines and activity increasing month over month. So I was just hoping you could spend a little bit more time. There what are what are some areas, where you are particularly excited about maybe early signs.

Nate Swan: A better performance from our sales force organization perspective, Thank you.

Nate Swan: Yeah sure. So I will give you three specific areas that we are working on so sale our sales methodology, our fast methodology. Our sales teams are really leaning in on that so making sure that we.

Nate Swan: Speak the right way with our clients and internally.

Nate Swan: And we're actually doing a session with our analyst group Tomorrow and that same methodologies that we make sure our analysts and our salespeople are communicating the same way so getting on the same page about how we talk about our business and opportunities.

Nate Swan: One number two our pipelines on a per AE basis now keep in mind were down slightly from a head count year over year, so year over year per AE basis pipelines are up about 33% through Q1 and continue that trend in April.

Nate Swan: Really proud of what the sales team is doing they are very focused on getting more meetings more opportunities qualifying them quickly.

Nate Swan: To try and keep it.

Nate Swan: To move them through the pipelines.

Nate Swan: Quickly as possible certainly its a volatile market right now and it's taking longer to go through their getting longer approvals.

Nate Swan: We definitely saw a little bit more wait and see so pipelines are improving.

Nate Swan: Improving and then number three really our retention lifecycle activity the activity that our customer success organization is is a really good.

Nate Swan: Wrapping up on and our sales organization, so making sure that we're talking to the.

Nate Swan: The senior leaders of the organizations that are buying our services.

Nate Swan: Talking to them about what how are they using forrester and what value can they be expecting back. So we're really seeing the organization lean in on those areas around making sure that they're driving retention and I know that will pay off for the for the organization in the long run.

Nate Swan: So our sales methodology.

Nate Swan: <unk> improvement and then just process improvement with our retention lifecycle.

Nate Swan: If I could squeeze one more in maybe because you mentioned the head count growth in the sales force I mean is there any way for us to think about what what's voluntary attrition there versus inbound Terry it doesn't look like it.

Nate Swan: Ticked down a decent bit sequentially. So just wanted to get a sense for that and maybe what the head count growth plans are.

Nate Swan: Yes, so for the rest of the year sure.

Nate Swan: We have the head count growth in our second half.

Nate Swan: Plan, we are actively looking at where we can apply going into the year I think we felt like we had a good opportunity to go with the government and we are having to rethink how were adding head count there and maybe redistribute that into other areas, but were looking around the globe to where does it make sense to.

Nate Swan: Add add head count to the organization, we are down year over year that is partly attrition and partly.

Nate Swan: We did.

Nate Swan: Did not backfill some territories as we were going through a reduction now we are feeling very confident that we've got the right territory size and it's time to start growing back and I want to emphasize I think the sales team is doing a great job at building pipeline and they're showing that we can we can create the opportunities out there.

We just need to start converting that growth pipeline.

Nate Swan: Thank you very much.

Nate Swan: Thank you.

Speaker Change: Thank you and I show. Our next question comes from the line of Anya <unk> from Sidoti. Please go ahead.

Speaker Change: Hi, and thank you for taking my question.

Speaker Change: Most of them.

Speaker Change: Let's see if I understand right the pipeline is expanding but the sales cycles ACL prolonged.

Speaker Change: That's correct Dan Yes, we are seeing.

Speaker Change: About.

Speaker Change: 10 days longer 10 to 12 days longer than our initial view.

Speaker Change: Two to closeout deals.

Speaker Change: So not surprising much more layers of scrutiny, we're certainly hearing it from our account managers as well as from clients that Hey, there is a new process in place. We werent aware of this process. This is this just changed so pretty rapid development.

Speaker Change: In Q1, as we were going through both renewals and growth cycles. I think we are very prepared for those conversations now as you.

Speaker Change: Things have changed with long time buyers.

Speaker Change: Where they didn't have a process before and now they have the process, great we need to react to that and make sure that we are.

Speaker Change: On track with them and feeling pretty good about how we're doing we should not be getting surprised.

Speaker Change: Into.

Speaker Change: The remainder of the year is that there is more scrutiny and more tie ups that have to happen before contracts get signed.

Speaker Change: Okay. Thank you and I still hoping that two large events in the second quarter.

Speaker Change: Or are they shipping.

Speaker Change: Thank you hi on ads carry we have our CX events one in.

Speaker Change: Europe in London here coming up in a few weeks and then we have CX North America at the end of the month in Nashville.

Speaker Change: Those are looking very good from an audience perspective.

Speaker Change: CX North America in particular.

Speaker Change: We're seeing really good growth there in the total attendee side.

Speaker Change: Yeah.

Speaker Change: For the year, so far so we're excited about those and excited to get those executives together.

Speaker Change: Okay. Thank you.

Speaker Change: Also in terms of.

Speaker Change: Sector as well then.

Speaker Change: Perfect sectors that were more challenging or is it across the board.

Speaker Change: I think we're seeing besides the government sectors, we're seeing.

Speaker Change: Challenges across the board more with.

Speaker Change: Certainly on the manufacturing side.

Speaker Change: A little bit on the financial services side, but I think its kind of equal pressure.

Speaker Change:

Speaker Change: Around different industries in cohort retail as well as.

Speaker Change: As I said in the remarks, the biggest impact we saw in the tariffs was really in Asia.

Speaker Change: Companies, they're hesitating.

Speaker Change: And Asia, followed closely by Europe.

Speaker Change: Okay. Thank you so for me.

Speaker Change: Thanks I appreciate it.

Speaker Change: Thank you and I'm sorry last question in the queue comes from the line of Vincent Colicchio from Barrington Research. Please go ahead.

Vincent Colicchio: Yes, most of my questions were asked already as well.

Speaker Change: Just Chris.

Speaker Change: As your visit how does your visibility to the revenue estimate for.

Speaker Change: For the year.

Speaker Change: At the low end compared to what it wasn't in the year ago period.

Speaker Change: Yes.

John: Thank you John and strong I mean.

Speaker Change: On the search in China business, obviously for for research.

Speaker Change: That's a very good estimate for the year obviously.

Speaker Change: The outlook.

Speaker Change: As us.

Speaker Change: With a forecast on FTE I think is like I said right down the middle of balances, our risks and opportunities, especially on the government side.

Speaker Change: Across the sectors.

Speaker Change: We have seen a little bit of weakness.

Speaker Change: Tech has been kind of our best performing vertical our overall, which is good and so our expectation is that we're going to watch that closely.

Speaker Change: And Opex continues to perform the way it ashwin.

Speaker Change: And I think the consulting side, certainly we think thats, a balanced view as well.

Speaker Change: Same thing for events, so we feel pretty good about the outlook, obviously like I said.

Speaker Change: Earlier in the call, it's not a recessionary outlook.

Speaker Change: Is it balanced view based on what we can see right now in all of this.

Speaker Change: Expectations around where this administration is in the macroeconomic environment and yes, we're going to continue to watch it closely.

Speaker Change: Feel pretty good about.

Speaker Change: Especially in Hawaii.

Speaker Change: And the client decline.

Speaker Change: Decline.

Speaker Change: The decline in total clients.

Speaker Change: Is that still solely.

Speaker Change: We're primarily small clients.

Speaker Change: And if so when do you expect that to.

Speaker Change: Starting to grow again.

Speaker Change: Yes, it has been mostly in the still in the smaller clients.

Speaker Change: We.

Speaker Change: We certainly are seeing really good results out of our emerging tech business. It is one of our better performing business.

Speaker Change: Is at the higher end.

Speaker Change: <unk>.

Speaker Change: That market, so kind of following our strategy.

Speaker Change: Greater than $50 million, we're seeing better retention numbers out of that group.

Speaker Change: Still.

Speaker Change: Churning some of those smaller vendors some of them that had migrated over to the new product and maybe it was not a fit which it wasn't designed to be.

Speaker Change: Fit for.

Speaker Change: An organization that was not growing and utilizing those services.

Speaker Change: The biggest reason for non Retentions Vince is a mismatch we sold to the wrong persona the wrong product and that's that's the primary we're very vigilant about the staff when we ourselves are making sure the declines matched up with the priorities that matched up with the persona of it that's the primary reason for.

Speaker Change: Our non retention.

Speaker Change: A single seat holders is.

Speaker Change: With contracts as kind of our.

Speaker Change: Place that we need to avoid right we want to sell people working teams, we want to sell team solutions for them. So.

Speaker Change: So when we get a client that only has one license.

Speaker Change: It tends to be a little more difficult, we certainly can sell through that but it's an area of opportunity where we can get better.

Speaker Change: Thank you gentlemen, I appreciate it.

Speaker Change: That makes sense thanks, guys.

Speaker Change: Thank you that concludes our Q&A session I would now like to turn the conference back to Chris Senner CFO for closing remarks.

Speaker Change: Yeah. Thanks, all for joining today any follow up questions. Please reach out to myself or Ed our obviously ideal.

Speaker Change: Thank you. Thank you very much. Thank you. Thank you.

Speaker Change: Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change:

Speaker Change: Okay.