Q2 2025 N-able Inc Earnings Call

Speaker #1: Hello everyone . Welcome to today's enable second Quarter 2025 earnings call . My name is Seb and I'll be the operator for your call today .

Speaker #1: If you would like to ask a question during the Q&A session , please press Star One on your telephone keypad . If you would like to withdraw your question , please press star two .

Speaker #1: I will now hand the floor to Griffin Gyr to begin .

Speaker #2: Thank you . Operator and welcome everyone . To enable Second Quarter 2020 earnings Call . With me today are John Pagliuca enables president and CEO and Tim O'Brien EVP and CFO .

Speaker #2: Following our prepared remarks , we will open the line for a question and answer session . This call is being simultaneously webcast on our Investor Relations website and investors .

Speaker #2: There you can also find our earnings press release , which is intended to supplement our prepared remarks during today's call . Certain statements made during this call are forward looking statements , including those concerning our financial outlook or market opportunities and the impact of the global economic environment on our business .

Speaker #2: These statements are based on currently available information and assumptions , and we undertake no duty to update this information except as required by law .

Speaker #2: These statements are also subject to a number of risks and uncertainties , including those highlighted in today's earnings release and our filings with the SEC .

Speaker #2: Additional information concerning these statements , and the risks and uncertainties associated with them , is highlighted in today's earnings release and in our filings with the SEC .

Speaker #2: Copies are available from the SEC or on our Investor Relations website . Furthermore , we will discuss various non-GAAP financial measures on today's call .

Speaker #2: Unless otherwise specified , when we refer to financial measures , we will be referring to non-GAAP financial measures . Reconciliation of GAAP to non-GAAP financial measures discussed on today's call is available in our earnings press release on our Investor Relations website .

Speaker #2: And now I will turn the call over to John .

Speaker #3: Thank you , Griffin , and welcome everyone to our call this morning . As we turn the page in the first half of 2025 , enables mission of protecting businesses from evolving cyber threats matters more than ever .

Speaker #3: The relentless pace of digitalization , turbocharged by and a worsening threat environment , are putting growing pressure on businesses to stay safe in an increasingly complex world .

Speaker #3: Enable is built for this moment . Our Cyber Resilience Platform empowers organizations to manage , secure and recover , delivering the comprehensive protection needed in today's landscape .

Speaker #3: The results demonstrate our success . In the quarter , we surpassed $500 million of are growing 14% year over year and delivered 32% adjusted EBITDA AI margin .

Speaker #3: Enable is delivering profitable growth at scale . Let's take a closer look at why we are a cyber security vendor of choice for small to mid market enterprises .

Speaker #3: It starts with the breadth of our unified end to end platform , which spans three pillars unified endpoint management , security operations , and Data protection .

Speaker #3: Each delivers critical outcomes . Our UAM solutions act as the command tower , providing visibility and control across the entire IT estate . Our security operations solutions monitor the environment , actively detecting and stopping threats , and our data protection solutions serve as the final line of defense ready to restore data in the event of a breach or data loss .

Speaker #3: Just as important , our open ecosystem seamlessly integrates with third party tools , empowering customers to tailor their environments to their unique needs .

Speaker #3: An essential advantage in today's fragmented IT landscape . Together , these capabilities provide true end to end cyber resilience . This platform approach allows us to deliver more insights , reduce vendor sprawl , and close coverage gaps .

Speaker #3: Differentiating enable from narrow point solution providers . Our end to end value proposition is resonating . We saw a healthy year over year growth in our ARR per device as we broaden our presence across our customers environments .

Speaker #3: Key to the value of the platform is the strength of the individual pillars . Our triple pronged approach carries weight . Each pillar is award winning at meaningful scale and with the proven right to win .

Speaker #3: This strength shows up in the numbers . Our top ten new customer deals this quarter included a mix of lands from all three categories .

Speaker #3: More broadly , our total company's average sales price continues to increase as we gain wallet share from an individual category perspective . Net new growth this quarter was led by data protection , followed by security operation and then UAM .

Speaker #3: Let's look at the progress in each area . We will start with Cove , our data protection solution where we see sustained momentum and traction .

Speaker #3: Cove now protects over 3 million Microsoft 365 users . And in Q2 recorded both its highest bookings quarter and highest net new quarter ever .

Speaker #3: Excluding the impact from annual pricing and packaging changes , impressive results , we are pushing forward to sustain momentum on the product front , the Cove team launched the new smart notification service that monitors all protected devices and proactively flags backup issues in real time .

Speaker #3: This cut through the noise improves visibility and helps make businesses safer . We also advanced our Linux Restore capabilities , which are now in public preview , expanding our workload coverage to include all major operating systems enables our customers to protect more and set the stage for future Cove growth .

Speaker #3: Meanwhile , prior innovations are driving results highlighted by year over year 25% growth and our AI powered enhanced restore capabilities launched in 2024 .

This combination is especially important for customers seeking to unify EDR, xdr and MDR under a single vendor.

A common customer preference.

we also made progress in unified endpoint management highlighted by further development of the new vulnerability management capability, we launched in April,

Identifying and remediating vulnerabilities is a vexing problem, plaguing it and security teams.

The 2025 Verizon data breach report showcases the scale of the issue.

Vulnerability. Exploitation is now the second most common breach Vector responsible for 20% of breaches.

A 34% increase from last year.

Verizon further found that only 54% of edge devices were fully remediated with a median, time to remediate of 32 days.

Showcasing, the Practical difficulty.

Fixing vulnerabilities, presents. Even once discovered.

The bottom line is vulnerabilities, create risk and consume time and security teams are struggling to find an answer.

This is where enable comes in.

By placing vulnerability management into our unified endpoint management solution. We enable a single workflow from the detection to remediation,

Seamlessly Bridging, the Gap between vulnerability insight and Patch execution.

An Elegant solution to a painful problem.

Our solution is already deployed across millions of devices and resonating with force in the market.

While vulnerability management is a meaningful addition.

It's just 1 part of our broader feature-rich, UAM offering.

Businesses are under pressure to do more with less.

And our uem solution is built for this. A driven era, automating routine tasks, and improving efficiency.

A standout customer win. Demonstrates this well,

A prospect launching. An endpoint manager. Business line chose enabled for our DPM capabilities in robust integration ecosystem.

Leveraging our integration with service. Now they built an AI powered chatbot that the flex a significant amount of level 1 technician tickets.

This drives real operational savings.

This deal reflects the strength of our UEM solution and the value of our open ecosystem.

let's now switch gears and discuss our go to market motion.

Expanding into the broader channel is a key growth Initiative for enable and critical to delivering cyber resilience at scale.

We aim to ensure enable as a top of Mind. Vendor not just for mssps, but also for resellers system, integrators Distributors and the full ecosystem of Channel providers small, and mid-market companies rely on to guide, their cyber security Journeys.

With msps, controlling only a quarter of the 2.1 trillion dollars small to mid-market companies, spend on it. We believe our channel strategy, unlocks, new markets for enabled and holds a lot of promise.

In the second quarter, we built momentum behind this initiative.

Adding more resellers strengthening relationships and enhancing system capabilities.

As part of our new channel initiative earlier this year, we engaged 1 of the largest and most respected resellers in the UK.

Vendors.

Following the sizable deal to Kickstarter relationship. The express appreciation for our partner first approach and how our cyber resilience platform uniquely addresses, mid-market customer technology needs.

Their feedback reflects the differentiated value. We bring to the channel and reinforces our conviction that the mid-market can become a meaningful customer segments for enable.

We're excited to deepen. This relationship, and replicate the success with resellers globally.

We expect the foundational work. We did this quarter to set the stage for long-term growth.

And with our reseller pipeline having nearly doubled quarter over quarter, we are confident in our ability to deliver on this company growth pillar.

We paired this foundational work with high impact Presence at RSA and infosec Europe.

Bringing our cyber resilience message to over 56,000 attendees.

We also published the 2025 state of the stock report.

Highlighting our unique insights from the front lines of cyber defense.

These events and thought, leadership pieces, reinforce our commitment to protecting businesses everywhere and showcase the strength of our platform to a global audience.

That commitment is also reflected in our leadership.

We recently appointed victim, romesh as our chief marketing officer.

with more than 25 years of cyber security experience, including leadership roles at mandiant, Google and Ed lumen

Victim brings a proven track record of building high impact, cyber security Brands and scaling Channel Market motions.

He is exceptionally well positioned to advance our mission, execute our strategy and amplify our message globally.

So bringing it all together.

We made considerable progress. This quarter, as we work to accelerate growth and Advance toward a 2028 ARR Target of 750 million.

Our growth strategy, rests on 3, key pillars, first driving security success, second scaling our go to market and third boosting customer expansion.

We are making solid Headway across all 3.

Our cyber resilience platform is resonating our Channel motion is gaining traction, and our footprint within customer environments, continues to grow.

And with that, I will turn it over to our CFO, Tim O'Brien, and then I will Circle back for closing remarks.

Tim.

Thank you, John, and thank you all for joining us today.

Q2 was another strong quarter for enable as we surpassed 500 million dollars of ARR and delivered top and bottom line results above guidance.

We executed well against our operational priorities.

Integrating AB Lumen into our cyber resilience platform.

establishing our new development center in India, and continuing to build momentum behind our expanded Channel motion to unlock the mid-market

As part of our Capital, allocation strategy, we began executing on our share repurchase program reflecting our confidence in the business and the opportunity ahead.

As we advance our mission to deliver cyber resilience at scale, we remain focused on growth oriented Investments and disciplined execution.

Let's now discuss our results for the second quarter, in our outlook, for the third quarter and full year.

For our second quarter results, total ARR was 513.7 Million. Growing at 14% year-over-year on a reported basis and 12% on a constant currency basis.

Total revenue was 131.2 Million, 4.7 million dollars above the high end of our guidance representing a proximately 10% year-over-year growth on a reported basis and 8% on a constant currency basis.

Subscription Revenue was 129.9 Million. Representing approximately 11% year-over-year growth on a reported basis and 9% on a constant currency basis.

We ended the quarter with 2540 customers that contributed or more of ARR, which is top approximately 16% year-over-year.

With over 50,000 dollars of ARR. Now represent approximately 60% of our total ARR up from approximately 56% a year ago.

Dollar-based net revenue retention, which is calculated on a trailing 12-month basis. Was approximately 102% on a reported basis and 101% on a constant currency basis.

Turning to profit and margins notes that unless otherwise stated all references to profit measures and expenses are calculated on a non-gaap basis and exclude the items outlined in the na. Gaap to non-gaap reconciliations provided in today's press release.

Compared to 84.7% in the same period in 2024.

Second quarter adjusted evida was 41.6 Million 6.6 million above the high. End of our guidance representing approximately 31.7% adjusted Eva de margin.

I love it. Free cash, flow was 33.3 million in the second quarter.

CapEx, inclusive of $3 million in capitalized software development costs, was $6.8 million for 5.2% of revenue.

Non-gaap earnings per share was 11 cents in the quarter based on 1 8 9. 3 3.

We ended the quarter with approximately 94 million of cash and an outstanding loan. Principal balance of approximately 337 million representing net leverage of approximately 1.6 times.

Approximately 45% of our Revenue was outside of North America in the quarter.

To briefly dissect, the quarter roughly half of our Revenue, outperformance versus guidance was attributable to the positive impacts of higher than forecasted foreign exchange rates.

The remaining Revenue outperformance was largely attributable to strong operations with Cove delivering record bookings and our newly acquired, add Lumen security operations, solution, being meaningful, adoption across our MSP customer base.

Our beat against adjusted Eva guidance primarily reflects the flow through of the revenue B.

Turning to off Financial Outlook. Our guidance accounts for the following elements.

First, we are assuming FX rates of 1.100 for the Euro and 1.31 for the pound, for the remainder of 2025 along with updates to other currencies.

Second, we continue to see a disciplined but healthy spending environment and traction with our top company growth pillars.

With that in mind, for the third quarter of 2025, we expect total revenue in the range of 127 to 128 million representing approximately 9 to 10% year-over-year growth on a reported and constant currency basis.

We expect third quarter adjusted, evida in the range of 36 to 37 million representing, an adjusted ebit to margin of approximately 28 to 29%.

For the full year 2025 we are raising our total revenue Outlook to 500 to 503 million. Representing approximately 7 to 8% year-over-year growth on a reported and constant currency basis.

We are raising our full-year ARR outlook to $525 to $530 million, representing 9 to 10% year-over-year growth or 7 to NS on a constant currency basis.

As a reminder, our full year ARL Outlook is on a like for like basis as ADD Lumen was included in our year, end 2024 ARR.

We are raising our adjusted Eva Outlook and expect full year adjusted Eva of 141 to 144 million, representing 28 to 29%, adjusted, Eva to margin.

We reiterate that we expect capex, which includes capitalized software development costs, to be approximately 6% of total revenue for 2025.

We also expect our adjusted evida to unlevered free, cash flow conversion percentage to be approximately 68% for the full year.

we expect total weighted average diluted shares outstanding of approximately 188 to 189 million for the third quarter and the full year

Finally, we expect our non-gaap tax rate to be approximately 19 to 20% for the third quarter and 20 to 21% for the full year.

Now, I'll turn it over to John for closing remarks.

Thank you, Tim.

I missed a threat. Landscape growing more complex by the day.

We are delivering the security outcomes that small and mid-market businesses depend on.

Our cyber resilience platform is built to win and our model is proving it.

Balancing durable growth with strong profitability.

We remain confident in our ability to execute and create long-term value.

And with that, operator, we will open it up for questions.

On your telephone keypad and to withdraw your question, please press star 2.

The first question is from Mike. Seos from needam. Please. Go ahead.

Hey, good morning guys. This is Matt calitri on from Mike secos over at nem. Thanks for taking our questions.

Um can you provide some more color on the go to market traction? You're seeing with resellers and what has been top of mind for vicram in his first couple weeks in the CMO seat?

Yeah, uh, great. Great question, uh, in in good morning to everyone. Uh, so look our go to market teams are finding a nice Rhythm. Uh, you know, it's, uh, with with the xdr platform. Now, the bigger 1 of the bigger business model Transformations, is now we have 3 pillars to go to market with. And so I think that's accelerating the strike zone and it's accelerating the strike zone or widening, the strike zone both in our, in our markets that we're direct, but also in the resellers. And so now we have an opportunity when we're talking to a mid-market company or CIO at a mid-market company, or, you know, an owner of an MSP business. There's there's 3, there's 3 pillars that we can talk to them about and that's actually showing a nice bit both on the NCA motion. Our new customer acquisition motion, but also on the cross sell. So we're, we're, we're seeing nice bookings. We saw it last quarter, we continue to see it so far, uh, in Q3. Um, and then so we we gave you an anecdote on 1 of the resellers and and and I'll share with you, uh, you know, another we're now having conversations.

And we're now in having joint sessions in markets like Germany where we're having, you know, dozens of cios in Germany. Attend. Uh, and listen to our Cove data protection story. Our xdr story and we're leaving those meetings with with, uh, real opportunities from the personas that are going to make the decisions. And so, uh, it's it's a brand new, uh, lever or brand new Avenue for revenue for us. So, we're pretty excited about it. I think we referenced a quarter over quarter, you know, doubling of the pipeline, you know, reminder we're on average at, you know, $20,000 ASP business. So um, it's good. We're building it. We're, you know, with 6 figures, we're building it into it but in a little bit over time as we extend both from a, from a market point of view,

And we're pretty excited about that especially when now where we have the 3 areas that we can talk to resellers and msps about on the victim front. Uh, vicram is that black hat today? Uh, which, uh, which is, is it's a good indicator as to where his focus is? Uh, he's a cyber security expert and, and he, he's really excited because he he's able to tell a complete cyber resilience story. And so educating, the mid-market about who enable is we're well known in the MSP Market. You know. We're we're considered a leader in the MSP Market.

Uh, lesser known in the mid-market and, and he's out at black hat, right now, uh, really, really promoting that story. We we see others in the data protection space partnering with cyber security companies, uh, here at enable at all of our Tech, right? So, xDrive, uh, and data protection. We have the, we have the complete cyber resilience platform story for the mid-market and it's all under 1 house that gives us an advantage. That makes them more efficient. That makes them more secure and he's out there really promoting that story. And uh and making sure that the mid-market understands where we play why we have 3 best-in-class pillars to go into the mid-market. So he's really focusing on building that cyber resilience brand uh and he's out there, right? And how at black hat doing so.

That's all great to hear. Thank you.

Um, and can you remind us where we're at with, with the optimization and the ASC 606 headwinds associated with, with moving, the annual contracts are? Are we getting close to, to seeing uh, a, a baseline growth emerge here? And as customers are coming up for renewals are, are they happy to sign another upfront commitment.

Yeah, I would say um, if you look at our kind of full year, our Outlook, I would say that that quals any um, of the 606 or optimization um, noise that we went through in 2024. Um, so I think that's probably the best. Uh, the best marker to look at kind of uh, I'll call it the, the best velocity metric for the business would be kind of exit, uh, 2025 ARR that close any 606 optimization or any inorganic impact noise. Uh, from the ad Lumen acquisition as well. Um,

Customers are, um, you know, renewing at a very healthy clip. I would say, um, coming through kind of the first log of renewals, in the first half of of the Year here in 2025, with the, with the commitments that we put in place, uh, last year in 2024. So very willing to to recommit. Um, and renewing, you know, at a, at a clip, uh, around 90% or so.

Awesome. Thanks so much.

Question is from Matthew hburg RBC Capital markets, please go ahead.

Hey guys, this is Mike Richardson from Matt. Thanks for taking the question here, uh, you know, strong results, uh, across the board and, you know, are accelerated in a constant currency basis. Um, you know, maybe I'll just looking for more detail on on the, our guidance. Um, you know, is there anything pulled in this quarter that that made results look strong? Um, or we just kind of looking in a conservative back half like is there anything you guys are seeing in the back half? That would kind of leave the constant currency guide, untouched. And then I have a follow-up. Thanks.

Yeah, I I can help unpack it. I would say there's there's definitely some FX Dynamics at play with with Q2 and and the full year if you neutralize any of the FX impact for um between the full year outlook and Q2 um the second half.

Is uh, from a growth stamp on an ARR is slightly above, um, where it was in the, in the first half of the year. So I know it looks a little bit wonky, um, just due to some of the FX Dynamics. But, um, if you neutralize some of that FX impact, um, second half implies more growth in the first half of the year in our constant currency Outlook.

Gotcha. And then, um, yeah, at Investor Day, we talked about new pricing and packaging bundles coming in the second half. I was just wondering if you guys could give an update there and how you are looking at that, you know, driving more cross-sell across the three pillars. Thanks.

Sure. Yeah, it, you know, that the the, um, the market, our customer base continues to tell us that, you know, as they look through, they have Tech stack fatigue, right? And and especially some of the smaller shops, uh, navigating, you know, uh, a vendor sprawl, where they might have 16 or 17 different vendors, is suboptimal. And so, where we can, where we can bundle that up, uh, with a, with a, with a, with 1, a best best in, kind of, uh, class type of solution, and then help them with their vendor sprawl. Uh, and and inevitably, when you, when you, when you parse it apart, it's better economics for them as well. So the bundle and continues to to resonate, I I categorize it still an experimental phase right, where um, we're experimenting. We're getting good traction and we continue to lean in

In a little bit more as we go through the back half of this year and continue to 2026. So all positive from that front.

So the next question is from Joe Vandrick at Scotia Bank. Please go ahead.

Thanks for taking my question, John. I think you mentioned half of msps aren't offering MDR.

Is that true for your customer base? And

How are you educating your MSP customers on the opportunity?

The directionally, we're finding it true for our customer base as well. Yeah. Uh, so that, you know, it, but you you bring up a good point that part of our, you know, part of our heritage here is that we do a good job of evangelizing and educating uh both the mid-market and the and the managed service providers as to what what they need for their customers. To make sure that they're protecting their their, their businesses every day. Um, but the key part of that is doing it differently. And so what, what we're we're we're, you know, what we're preaching is to augment, right? A lot of it, some of the msps, maybe some of the bigger shops they've tried to potentially build a sock themselves and, and most have found that to be a an upside down business proposition. And so, by leveraging our xdr technology, we're doing a lot of the, our Technologies doing a lot of the heavy lifting

With modern Cloud architecture. Leveraging AI, we're very proud of the level of Automation and artificial intelligence that we have, uh, in our sock and that the way that we're detecting, but also responding and giving customers the guidance that they need. But you used to take hours to get back to a customer is now taking minutes. And uh, and and as we know, when you're dealing with thread actors, you know time time is a time is essential, right? And so we're finding uh the msps are really resonating with the offering 1 because of the AI. That's infused. But also because we give them the ability to have eyes on glass in our solution, which is different than other folks. Other folks they look at MDR xDrive as like a black box service, they can't see what's going on inside. Ours is a software and software first, so the msps can look at the same things that our Security Experts are looking at giving them the comfort and confidence that they need. And so the story is resonating. The tech is differentiated uh, and we continue to evangelize and we're seeing more and more opportunities. It's it's by far 1 of our, uh, you know,

1 of our fast growing skus from a pipeline in bookings perspective.

That's really helpful and maybe 1 for for Tim.

Really impressive strength in the the 50k customer adds number. What do you attribute that strength to is it at Lumen or maybe you called out

Cove at the beginning of the call, you Landing larger there, I'm just curious. What, what do you attribute that strength to

I I would probably attribute it to, uh, a few different things, you know, we've we've made a focus in the MSP Market, um, to focus on larger msps, um, from bringing new customers in. And I would say, we're starting to see some of the return on those Investments that we made over the last 12 to 18 months or so. Um, also the the ability for us to cross sell the portfolio into the base as we execute on that. Whether it be through, you know, bringing add Lumen um, into our MSP customer base, continuing to cross Bell Cove into our customer base, Landing new code customers. Again, in that up Market, focus in the MSP segment, um, are all key drivers to that and then same thing on the on the add Lumen, mid-market front. Um,

They, you know, I would say they they land deals above and, and below that kind of 50k threshold. Um, and I would say it's just been normal course from an ad Lumen perspective, so, um, I would attribute it more to probably success in the MSP Market, um, for the Q2 results. But I expect mid-market to have, um, impact in this category as well as we build out the channel, uh, and continue to bring the full portfolio.

Into the mid-market as we progress through the second half of 2025 and into 2026.

Our next question is from Jason Ada from William Blair. Please go ahead.

Yeah, thank you. Good morning, guys. I just wanted to ask just about the overall health.

Of the um SMB it Market. Um, what trends are you seeing to kind of give you a sense of um, you know, just that that macro element. Um do you feel like things are stable? Are they getting any better or worse? Um, that would, that would be my first question.

Sure. Hey, Jason, uh, it's John. Uh, so look, you know, I think the, the trends that we've been referring to the last couple of quarters continue to be those those same solid Trends and that, uh, data protection and security are top of mind. It's a big part of

Uh, the msps growth algorithm, and it's very much top of mind, uh, for, uh, cios in cesos, a, mid-market businesses. And so, and then you couple that with a boost in productivity that, uh, mid-market companies, and msps are getting and leveraging, uh, you know, another wave of of technology in in Ai. And if you spend appears to be, I'd say pretty healthy in our base and what we're seeing based on, you know, our pipeline talking to cios and talking to msps. Msps are continuing to grow, they're continuing to add more

Services, uh, the need, uh, for for not just, you know, it operations automation, but also security and security operations continues to be strong. So, uh, you know, from from our lens, uh, it seems the demand seems to be, you know, as healthy as as as before. And, and frankly, as I mentioned before, go to market teams and are building, you know, healthier pipeline, uh, than they have been in the past couple of quarters. So, we're optimistic about, um, the demand there.

Any commentary on the um, on the device side.

The rmm side.

yeah, I'd say it's

Recover, uh, a a bunch of a bunch of things, right? Uh, so on the device side, I'd say it's consistent. It's, it's relatively, uh, what? It's been the last couple quarters. I'd say more more flat-ish but we are seeing a nice uptick in a lot of the other digital assets. M365 users users in general uh, virtual machines, right? These are all these are all uh, uh, assets that we manage that there's data on that, we're making sure that people are protected and recovering. So, in in the VM world, and in the M365, and SAS world, uh, more growth there and in the physical devices, that's more of a, a flattish type of, um, trend

Okay, great. And then Tim for you, uh could you give us any comments on the as Lumen contribution? Um or if you don't want to give us a specific number? Can you just talk about organic?

Uh, year-over-year growth, like kind of what? What are that um trended up or you know, it's stable.

Yeah, I would say the the colors consistent with what we've given historically, you know, we we we expect to add Lumen to have about a point of impact on exit 2025 um ARR growth and then kind of mid period here. You know, we, we disclose the size of the album and business fund acquisition in the low low 20 million of ARR. So that equates, you know, about about 4% or so, um, of impact, on on overall growth. So I think, you know, that should help you kind of guide you on inorganic.

Impact from add Lumen and, you know, quarter 2 here, and quarter 3 and then year end quarter 4 from our perspective. Um, just due to the velocity the abdomen business upon acquisition. It's adding about a point, um, of growth to the overall equation for the year.

Okay, thank you very much.

You got it?

The final reminder: for any further questions, please press *1 on your telephone keypad.

We have no further questions on the call at this time, so I'll hand it back to management for any closing remarks.

Uh, thank you all for joining us today and your continued interest in enable. Enjoy the balance of your summer.

This concludes today's conference call. Thank you all very much for joining and you may now disconnect