Q2 2020 Earnings Call
Good morning, and welcome to the Blackberry fiscal year, 2022nd quarter results Conference call.
My name is Lisa and I'll be your conference moderator for today's call. During the presentation. All participants will be in a listen only mode. We will be facilitating a brief question and answer session towards the end of the conference should you need assistance during the call. Please signal a conference specialist by pressing Star Zero as a reminder, this conference.
This is being recorded for replay purposes, I would now like turn the presentation over to your host for today's call Christopher Lee Vice President of Finance. Please go ahead.
Thank you Lisa welcome to the Blackberry fiscal year, 2022nd quarter results Conference call.
With me on the call today are executive Chairman and Chief Executive Officer, John Chen.
And Chief Financial Officer, Steve Capelli.
After I read our cautionary note regarding forward looking statements John will provide a business update and Steve will then review the financial results.
We will then open the call for a brief <unk> session.
This call is available to the general public via call in numbers and via webcast in the Investor information section of Blackberry Dot com.
A replay will also be available on the Blackberry Dot com website.
Some of the statements, we'll be making today constitute forward looking statements and are made pursuant to the safe Harbor provisions of applicable U.S. and Canadian Securities laws.
We will indicate forward looking statements by using words, such as expect will should model intend believe and similar expressions forward looking statements are based on estimates and assumptions made by the company in light of its experience and its perception of historical trends current conditions and expected future developments as well as other factors.
The company believes are relevant.
Many factors could cause the company's actual results or performance to differ materially from those expressed or implied by the forward looking statements, including the risk factors that are discussed in the company's annual information form which is included in our annual report on form 40 F and in our Mdna.
You should not place undue reliance on the company's forward looking statements. The company has no intention and undertakes no obligation to update or revise any forward looking statements, except as required by law.
As is customary during the call John and Steve will reference non-GAAP numbers in their summary of our quarterly and annual results for a reconciliation between our GAAP and non-GAAP numbers. Please see the earnings press release and supplement published earlier today.
I will now turn the call over to John .
Thank you Chris Good morning, everybody in our second quarter fiscal quarter total company revenue was 261 million.
It grew 22% year over year total software and services was 256 million growing 30% year over year and driven by double digit percentage growth in software and services is filling in the same period.
Earnings per share were breakeven and free cash flow was positive as we continue to increase our investment in product development and go to market to drive long term sustainable growth.
All of our business perform at or better than our revenue expectation, except for enterprise software and services Oh, we call, yes, as we speak I will speak more about that later.
We are executing upon to full operational priorities for fiscal 2020 that we spoke about at our analyst day, which many of you have attended.
Let me remind you who they are what they oh, sorry, do blackberries the product integrate very silent worship the young product and then with the QNX product.
Broadening our reach in regulated industry verticals and expanding into new verticals.
Proof points of this execution during the quarter would include the following first the release of Blackberry intelligent security how initial use case on the spark platform to pass it to validation with positive validation from both the industry and customers alike.
Blackberry intelligence emphasis is the foundation of our zero trusts architecture.
Secondly, the integration of silence AI technology into our product with a combined you yen sinus product scheduled for release in early calendar 2020, as we have previously communicated.
Certainly a new logo anything yet fast and Blackberry technology solutions or Bts came in and government financial services and transportation, signifying deeper penetration into regulated industry verticals and last but not least expansion into new industry verticals, such as you know oil.
And guess industry.
I will now move to our own on this is commentary starting with the IOTV business.
I want to I O T revenue declined 5% year over year.
Bts continue to perform well with double digit growth in line with our expectation offset by softness in our SS business.
The softness you know, yes as business in primary due to the retooling of our sales force we anticipate the impact on this retooling to last another two quarters.
While we strengthen our go to market and increase our pipeline.
Our goal of sequential quarterly revenue growth provided last fiscal year quarter, sorry, I suppose to quarter was push out by three months, that's still retooling caused some disruption in the development and closure of our pipeline.
We believe that the change changes we made in sales leadership last quarter and its subsequent changes in other personnel support our objective to increase our reach in existing regulated industry as well as expansion into new verticals.
A regulated industry business remains healthy and stable.
We added new logos, we ended the government vertical.
Including the US Department of Health and human services, the National Assembly in France, the cyber security in the leisure a government agency under domination Ministry of communication and multimedia.
Our Fad run power authority to operate Aito increased from nine to 10.
Government Agency, United State Government agency, and a and a Blackberry ran fat ran cloud user base increased by 16%.
Since this last March when we last reported to approximately 1.4 million users.
You know financial verticals, we added the I. CPC to industrial and commercial bank of China as a new logo. Among many others. We also experienced strong globally to oil and gas industry, a new and developing vertical of focus for Blackberry.
While we are not satisfied with the short term results. The timing of these changes is important as we are entering a refresh cycle of our security and communication products that are well suited for the current security trends.
Presently we are in beta would about 10 customers well back very intelligent security, which we actually announced at black hat.
Conference.
These.
These customers. These 10 customers are interested in a continuous authentication and the adaptive security features of our product.
Also many of our top customer has expressed early interest in the AI driven mobile threat detection that is natively integrated with the European Council and bank and other back very apps.
In this evolving security landscape, we believe data and identity not a network this new security parameters.
Now, let me walk through some of the Bts highlights.
Blackberry QNX continues to represent the vast majority of Bts revenue.
On Blackberry QNX revenue stream grew year over year, notwithstanding the downturn in global auto production. We are encouraged by this trend because our customers are spending increasing amounts on factory software in current and future auto designers. This would definitely increase our ARPU.
The recent announcement with Denso and Subaru highlights this trend of Blackberry, achieving more content per vehicle.
I will jointly develop HMI human machine interface digital cockpit system is the first of its kind and we start to ship in Subaru vehicle. This four in the United States in the United States.
This leading edge digital cockpit leverage at Blackberry QNX Hypervisor, the operating system and the digital instrument cluster Wow contributed to greater technology technological efficiency in a car and the sabre experience for the users.
In the quarter, we have a total of 26 design wins eight of the design wins were in the automotive market.
All of these wins were for digital copies and digital instrument cluster design.
The remaining 18 designs when when the general general embedded market primary in the defense industry and medical industry.
Third our expansion into general embedded market has been a stated strategic priority this fiscal year.
Our recent announcement with Jaguar land Rover demonstrate our thought leadership automotive software market with the addition of the site as AI security capabilities, we have the opportunity to provide a first cyber security platform for the auto market J.R. is the first to collaborate with.
We are working with others in the auto industry and dose interactions looks promising.
The Chief Executive Officer, Jay our Serrano spec.
We delivered a keynote address at our security summit in London on October 2nd and speak more on the topic.
Furthermore, we plan to demonstrate a combined QNX insiders capability at CES 2020.
Before I move into a licensing let me briefly talk about our radar business in the quarter, we added eight new customers, including Labatt Brewing company and we had repeated purchase from a number of our customers, including Lowe's companies for our partners Frac sedan.
We also added Mattson after quarter end. This continues to demonstrate the demand for our products in the market.
Moving onto our licensing business revenue grew 27% year over year above our expectation as several IP licensing arrangements occurred earlier than expected expected.
We also anticipate a second half of the fiscal year to be stronger than the first half.
For fiscal 2020, we now anticipate growth over last year instead of the 5% decline as we previously communicated.
Now onto site as revenue came in at $51 million, representing an increase of 24% year over year in line with our expectations.
This was driven by approximately 22% year over year increase in the number of active subscription customers.
We strengthened financial services manufacturing and professional set this as well that shows up as this industry notable win in a quarters were from abbey.
Pioneer natural resources bank, United and NASA.
Annual recurring revenue was approximately $170 million and up 21% year over year.
Dollar based net retention rate continues to be greater than 100%.
From a product standpoint silence card I'll manage detection and response subscription solution Ross released this past July .
The initial feedback we receive from existing customer partner, an interested buyer has been very positive.
And in substantiate that God is a comprehensive solution that provides advanced spread hunting and mobile convenience.
Our pipeline Grove is off to a very good start.
We'll continue innovation, we have a great opportunity to gain shares in this $11 billion plus endpoint security market. Currently led by legacy anti virus vendors the collective market share for all the Nexgen on next generation endpoint security players, which includes silence.
Is currently less than 10% so lots of room to grow there.
We acquired finance for our strategic vision that we stated last year, which is to secure the internet of things. We believe we can deliver on this strategy by combining our strengthening unify endpoint management.
Endpoint protection secure communications and data systems as far as the AI onto a single platform.
Recent market consolidation validates our early vision and underscore the scale and breadth of technological capabilities direct Barry We said this to be a winner in this evolving endpoint security market.
Before I turn this call to Steve I have some personnel changes to announce.
Extending our commitment for Grove I am pleased to announced as Steve Capelli will move into the role of Chief revenue Officer.
Steve will work with that business leader and Aiotv insight as to drive integrated revenue generating processes across Blackberry and assist in the development of our endpoint security go to market strategy.
Having worked with Steve in the past in a very similar ROE is uniquely qualified with a strong sales experienced.
And knowledge of our market a full understanding of our strategic goals.
Furthermore, I'm pleased to announce as Steve Ray will be promoted to the Chief Financial Officer.
Steve He has been a blackberry for five years, as vice President and corporate controller and most recently at the Debbie Deputy CFO for the last several quarter in anticipation of this transition.
Steve has an impressive 25 year background as a leader in finance and operation Independent technology industry. These changes will take effect as of October one of this year.
With that let me turn the call over to Steve Capelli to provide more detail about our financial performance.
Thank you John I'm excited about my new role as Chief revenue officer, with the acquisition of silence and leading edge product launches ahead of us.
This is the right time to drive a number of programs to increase the synergies of our products people and go to market activities across all of our business.
The transition of the CFO role to Steve rate should be a smooth one as we have been working on this for a number of quarters.
Now onto my discussion of our Q2 financial performance.
As usual my comments on our financial performance for the fiscal quarter will be a non-GAAP turns unless specified otherwise.
Please refer to the supplemental table in the press release for the GAAP and non-GAAP detail.
We delivered second quarter non-GAAP total company revenue of $261 million and GAAP total company revenue of $244 million.
I will breakdown revenue shortly.
Second quarter total company gross margin was 75%.
Our non-GAAP gross margin include software deferred revenue acquired but not recognized of $17 million.
And excludes stock compensation expense of $1 million and restructuring costs of $1 million.
Operating expenses of $193 million were down sequentially by one man as we optimize our spending while investing in product development and go to market.
Our non-GAAP operating expenses exclude $36 million in amortization of acquired intangibles and two man in acquisition and integration costs, which collectively represents about seven cents of our GAAP loss per share.
Additionally, our non-GAAP operating expenses exclude 13 main stock compensation expense for May and for software deferred commissions expense required to man in restructuring costs and a benefit of $23 million related to the fair value adjustment of the convertible debenture.
non-GAAP operating income was $2 million and non-GAAP net income was $1 million.
non-GAAP earnings per share was zero cents in the quarter.
Our adjusted EBITDA was 20 million this quarter, excluding non-GAAP adjustments previously mentioned.
This equates to an adjusted EBITDA margin of 8%.
I will now provide a breakdown of our revenue in the quarter.
Total software and services revenue was $256 million, representing 98% of total company revenue broken down as follows.
The IOTV business accounted for 51% of total revenue the Blackberry silence business accounted for 20% of total revenue and the licensing business accounted for 27% of total revenue.
Other revenue is now comprised of.
Service access fees service access fees were 5 million down from 12 man were 58% year over year total handset device revenue was zero down from $5 million, we're 100% year over year.
Both service access fees and handset device revenue were expected to decline given the continued wind down of these legacy businesses.
Recurring software and services revenue, including Blackberry silence was above 90% in the quarter. We are now modeling recovering revenue to be about 90% for the remainder of fiscal 2020.
Now moving to our balance sheet and cash flow performance.
Total cash cash equivalents and investments was $938 million, which increased by $3 million from May 31 2019.
Our net cash position was $333 million at the end of the quarter.
Free cash flow before considering the impact of acquisition and integration expenses restructuring costs and legal proceedings.
Was positive 17 million.
Cash generated from operations was 18 million and capital expenditures were $4 million.
That concludes my comments I will now turn the call back to John to provide our financial outlook.
Thank you Steve based I'll comment on this call our financial outlook for Fytwenty and for the total company year over year non-GAAP revenue growth is in the range of 23% to 25% driven by a double digit percentage increase in billings year over year.
We anticipate bts inside and performance to be in line with the financial outlook. We provided at the beginning of the fiscal 2020, we expect to softness in DSS from the retooling of the sales force to be offset by growth in licensing.
We also continue to expect total revenue non-GAAP profitability profitably profitability for the fiscal 2020.
I will now open the call for Q and a Lisa.
Thank you and we will now begin the question and answer session.
Ask the question you May press Star one on your telephone keypad. If you are using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment again press star one to ask a question, we'll pause for just a moment to allow everyone an opportunity to signal for questions. We request that you limit yourself to one question and one.
A follow up.
And our first question comes from the line of Paul steep from Scotia Capital. Your line is open.
Great. Good morning, John Hi, Good morning, Good morning could you talk a little bit more but the management changes you made to anything in particular in terms of the leadership at silence or other management changes within the organization.
The focus of those changes going forward.
Yeah.
So.
You know we've made a management change.
Bye.
Recruiting Brian Parmer.
And is.
He is running our Ironkey division.
Dan he's been bringing a number of executive in.
We have move our head off.
Americas I guess.
To head of Europe , with an emphasis obviously.
The major markets like France, and Germany, and UK. In addition to expanding our footprint in EMEA in sorry in the Middle East.
So we have.
Hi, or a new it sounds executive to run Americas.
And.
Who is very experienced on more on the entrepreneur smaller company I think his last role a one is last rose was with.
We look out.
So.
We had higher in a number of key executive, especially in fuel marketing for the generations.
And.
So the list goes on and you know.
So Brian is recruiting and new team for growth. So thats number one on site and size. We have promoted Daniel Docomo Booth was the chief operating officer for silence, when we acquired them.
To be to president of silence stupid.
Maclaurin had unfortunately after the integration completed has decided to move on.
I think.
I would I wanted him to stay longer but you had made a personal decision, which we have to respect.
However, at the bench there quite strong.
Both in sales.
Hey, gentlemen by day aligning with Dave Casanova.
He actually used to run out I'd say sales for many many years and I think you've seen it I'd say like 15 to 20 years, it's a very long time.
Yes, very very committed to the mission.
The sales the engineering team are intact.
The data scientists that development had.
The chief product officer ill all staying.
And working very hard integrating sciences business.
Into aside as this technology with our CTO and and now development ahead. So I feel very comfortable with that in addition to that the co founder of finance.
Brian permit.
It's now the chiefs acuity architect our Blackberry. So he has actually increased as well and I can't speak for him, but he looks happy.
And so that is a.
Bad.
I finally got rid off Steve Capelli.
So they couldn't bother me at all.
Dan I have obviously, Steve will help out to making sure that we have.
Synergy really.
Across different functional units.
Bovie in the go to market and the kind of the strategic side of the equation.
So that will cause also would include what is the other part of the Aiotv, we chose the bts having them we should the QNX technology.
And.
He continues to manage a licensing program as well as the radar program. So and so of course, we got Steve re step into the CFO job I see been with the company for I said five years I have recruited am I remember that.
And.
So.
You know he is very qualified to do the job and we've been working this transition for a while as you could tell.
By increasing of his anvil involvement enroll in the financial side of the house.
So let me see if I Miss anything.
Paul.
I think that I think thats about it.
Thats helpful. One follow up I guess I'd have is if we think through the rest of this year for silence are you guys still comfortable with the 25% to 30% growth rate that we talked about on the prior call or is that.
Sort of moved out a little bit.
No no we're still comfortable with the 25% to 30% range.
Perfect. Thank you.
Okay. Thank you.
Our next question comes from the line of Paul Treiber from RBC capital markets. Your line is open.
Okay. Thanks, so much good morning.
Good morning to focus on the billings growth relative to revenue growth in billings.
I think you mentioned for the last several quarters now it's in double digit growth seems like its a little disconnect versus revenue growth can you just elaborate more on billings, and perhaps where the strongest growth isn't billings and perhaps maybe on the duration of billings that you're signing and maybe more importantly, when you expect that billings growth to translate to revenue growth.
Most of the building is on annual.
You know I mean, most of our terms about contract there are some that are multi year.
But it is not the.
Not the month the majority of it.
Okay.
And honing a bit more into the FSS segment based on my numbers. It looks like the revenue for NSS is probably down in the mid teens. Maybe first is that is that correct and then just given the high mix of recurring revenue.
That seniors segment, what would the does it decline stemmed primarily on the non recurring side or.
Could you speak to the customer renewal rates on the SaaS side.
Yes.
Oh, yes.
Hey, Thanks for the question.
When we look at the US has your decline numbers are relatively correct.
In that component.
I would not overly emphasize the nonrecurring versus the route versus recurring so there's somewhat balanced in the two.
We're just we're looking we're looking forward to bringing out the new products and bring in the new team onboard and I think.
Yes, we can expect after a couple of quarters, we'll be back where we wanted it to be.
Yes, I would say that the weakness of VSS is really on execution.
We did not do as well and in closing the deal and I think that might be the familiarity of the new people.
With either the customers or or just a process of it and I don't I did not look at it from a break down of recurring versus nonrecurring at all in fact.
We have not wanted the team to do any nonrecurring.
So.
Today, when we talk about businesses, we are talking mostly on recurring.
Okay. That's helpful I'll pass the line.
Thanks.
Our next question comes from the line of Daniel Chan from TD Securities. Your line is open.
Hi, guys good morning.
Just two drilled into the CSS business, a little bit more I just want to confirm are you seeing any changes in the competitive landscape as you go for these bids.
Yes, we see the.
Microsoft being a little bit more aggressive.
And.
But we also have new products coming out that we believe will.
Well I mean, one came out ready to be ITATS product.
And a couple of new products going to come out in the short term, which is the next six months.
We believe we could be very competitive so.
So where we have to compete obviously, but we do we do see some of the landscape changes.
Okay, and then on a related note any thoughts on Vmwares acquisition of carbon Black and your view of how a silence will compete in your view.
Hey.
That's that's really a welcome news for us.
First of all.
So for any of you and maybe none of you who we thought that we pay too much for silence.
We actually pay the lowest multiple of all.
They come in Black I think the transaction was 2.1 2.2 billion somewhere around that number.
It's in the carbon black is pretty much the same size of silence.
And so and we paid 1.4 billion.
So that.
That was one thing secondly, I think the more important and like I said in the script. It really is a good validation of the strategy on this whole endpoint security market, which we are seeing customer one one platform now they don't want multiple proud phone. They don't want to do the integration and they wanted to have anywhere from the MGM.
All the way to the endpoint security anti viral.
Software and all in one platform one console one agent and one cloud so.
So we we believe that.
Is the advantage.
Blackberry and I'm, obviously, we have where I will always be a.
A formidable competitors, maybe that's a way to say it.
And this also helps Greece I'll change the landscape as we sell a lot of the fine product player.
Smaller player. So we absolutely believe to one platform, we see to one platform needs.
Especially in the big Big Industrial player.
And we when we went there for us and so I thought the Vmware carbon black thing was.
Quite logical.
Great. Thank you.
Our next question comes from the line of Maynard from Macquarie. Your line is open.
Hey, Matt.
Hey, good morning.
Good morning questions.
In your release, you talked about capex being at or better than your expectations and.
It's a number of interesting dynamics in the auto industry right on the one hand, you benefit from a lot of big secular tailwinds in the market and where your content is growing per vehicle, but on the other hand global Saar as it has been weak globally and the auto related names. We cover have all been taking guidance down. So can you just help us understand the puts and takes when you say Q next week.
In line or better what are your expectations already building in end market softness or is the content growth story coming in much better than you expected.
We it's more the latter than the former we did not factor in the the number of auto sales down by 2%.
But.
On the go ahead, well, we have been seeing is more and more.
A higher content.
Of each car is now in software.
And because we are well position.
First on the operating system side for the safety the safety functionality and then expanded more under the carpet in the display.
And this and the Ada it's kind of all the application layer.
So and our partnership with all the tier one as far as the chip manufacturers like Nvidia NXP the Qualcomm.
So.
So as they increase the content of our.
You see you at the chronic control unit in a car at each day as each of the minute manufacturing increase the number of software components that benefit us so the content and the content increase help us to move the ARPU up.
Got it Okay, and then just separately on NSS, it's down year over year, but also looks down sequentially as well and I'm. Just wondering if we should expect DSS to remain flat from the Q2 levels until the sales management benefits take hold and a couple of quarters or if you think that the new products that are.
Coming to market, but very intelligent.
Security et cetera.
Will help to drive growth in the back half thanks to current the current.
Yeah, then the current outlook.
Looks like that is going to uptick a little bit in Q3, and Q4, we're going to see a little bit better.
Second half than the first half.
But I will be modest about it.
Okay and is that just primarily driven by the by new product offerings.
And primarily driven by new product, but it's really not that I'm in new product always take six to nine months. The sales cycles are not is not as much as that as as.
The sales fall scad orientated more correctly and and.
As you get more familiar with the account.
It's really got the time of maturity.
Okay, great. Thank you.
All right. Thanks.
Our next question comes from the line of Todd Copeland from CBC. Your line is open.
Good morning, everyone.
Hi, just wanted to get you to look out a little bit far there how much of integrating silence in DSS is is required to to get that back on track and where you expect to get in fact this one platform is is the key to winning longer term. So just just talk about your thoughts.
The next couple of quarters, Yes, you know and we talk about earlier, Vmware and carbon black and the advantage of the platform. Obviously, we have to build that went platform.
And how how well how tightly integrated to organization is the pros and cons involve both extreme.
Obviously, you're going to have to be tighter than today, that's for sure and this is what they say I mean, all joking. Aside this is weston capelli needs to work on.
Although he doesn't want to I know, but.
Yes, we'll work on that because.
We got to make sure that is a efficient go to market.
And also strategically it makes us stronger.
So I would say.
It remains.
Work in progress, maybe that's a way to say it in hopefully in the next quarter or two we have a much better decision a much better view of that and we get excited about that then.
Okay, great. Thanks for the color.
Sure.
And our final question today will come from the line of James Fawcett from Morgan Stanley . Your line is open.
Hey, Jay Thank you Hey, good morning. Thank you so much good morning, just a a couple of.
Couple of questions first when you look at kind of your investment and that kind of thing.
How are you allocating resources I know, you're trying to manage to cash flow and earnings and how are you allocating resources to the different businesses and how you prioritize or not because I think on top the upside I think one of the things that that's a little bit concerning for people is that.
It looks like silence has fallen to roughly flat sequentially and it sounds like you're probably looking for that to improve in the second half of your fiscal year, but just wondering how you're thinking about allocating resources.
Yes. Good question currently the resources on mainly going to finance as you know, they're not making money, but we keep yeah, we do keep.
Increasing our investment there.
And and as and obviously Bts.
Those are the main two.
Moving to engine that we're finding the most and then we we truly yes as.
Sales force.
And balancing the expenses there. So those are the kind of the operating power expanding and we're hiring a lot of people, especially in sales both in DSS in silence.
We.
Spending as much as we possibly can but not losing money and that's kind of the operating principle guidelines and keeping a positive cash flow whenever we can.
Got it and then when you look at.
The increasing sales effort and hiring that you're doing there how are you thinking about like time to productivity in some of those other metrics, particularly particularly around silence and the new spark platform offering.
Just wondering how we should think about that ramp in and change in trajectory.
On.
He says is quite traditional six to nine months, though cycle I'm, so for a rep to be fully productive.
We will probably take a year because people get in there.
Learn the Prince of all of the business the technology behind it and and then and then we obviously hand them over a pipeline, which included new territories existing to our account base and and so forth and so that process, where you ran a full person up is probably going to take a year and.
But somewhat but we will expect to see some kind of progress before that.
So somewhere between six starting in the six month, Mark we should be seeing some some progress.
And then and then again, that's the kind of the platform the sat Fi and so forth onsite end side, it's a little shorter probably shorter by a quarter and the reason is wild way aid that market is growing.
And then there's a there's a lot of demand there, but but more importantly that product are more singular purposes.
And especially now what were pushing to sell is a managed service solution called the guard.
And the Garda usually.
A relatively easier sale than a platform sale because it's a managed service. So so so those are kind of how we factor in and how we picture.
Great. Thank you very much.
Oh sure. Thank you.
I would now like to turn the call back to John Chen for closing remarks.
Okay.
So thank thank you for all the comments and the question so in closing.
Although we are disappointed with the short term results there is no doubt but strategically.
We have a very strong position to win the 22 billion secure aiotv software market as well as the auto market any extension of that.
We have great products and number and the number of new leading edge products launching in the next six months.
In addition to launching these needing edge products. We are also working on a number of.
Exciting partnership announcement, so stay tuned.
We are also investing heavily in our go to market. We just spoke about it just a minute ago and now our focus is now on execution and on growth.
Thank you very much for your time today I'm sure we're going to talk soon.
This concludes today's call. Thank you for your participation you may now disconnect.