Innovid Corp (CTV) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Innovid first-quarter 2024 earnings call.

Our host for today's call is Brinlea Johnson.

(Operator Instructions) I would now like to turn the call over to your host, Brinlea Johnson.

You may begin.

Thank you, operator.

Before we begin, I would like to remind you that today's call may contain forward-looking statements and that the forward-looking statement disclaimer included in today's earnings release available on our Investor Relations page also pertains to this call.

These forward-looking statements may include, without limitation, predictions, expectations, targets, or estimates regarding our anticipated financial performance, business plans and objectives, future events, and developments.

Changes in our business, competitive landscape, technological or regulatory environment, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today.

Our historical results are not necessarily indicative of future performance.

And as such, we can give no assurance as to accuracy of our forward-looking statements and assume no obligation to update them, except as required by law.

In addition, today's call will include non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margins and free cash flow.

We use these non-GAAP measures in managing the business and believe they provide useful information for investors.

These measures should be considered in addition to and not as a substitute for our GAAP results.

Reconciliations of the non-GAAP measures to their corresponding GAAP measures, where appropriate, can be found in our earnings release available on our website and in our filings with the SEC.

Hosting today's call are Zvika Netter, Innovid's Co-Founder and CEO; as well as Anthony Callini, Innovid's CFO, both of whom will participate in our Q&A session.

And now I'll turn the call over to Zvika to begin.

Go ahead.

Thanks, Brinlea, and thank you, all, for joining the call today.

We had a strong start to 2024 as Q1 revenue grew over 20% and adjusted EBITDA significantly improved compared to Q1 last year.

Most recently, we launched our Harmony initiative and related product suite to optimize the CTV advertising ecosystem as we seek to keep TV open for everyone and controlled by no one today, I'll review our first quarter results, provide several exciting business updates, unpack the Harmony initiative, and share some thoughts on the rest of the year.

I'll then turn it over to our Chief Financial Officer, Tony Callini, who will provide further details on our Q1 financials, update on the financial guidance, and we'll finish with Q&A.

I am pleased to report first quarter revenue of $36.7 million, reflecting 21% growth over the last year.

Adjusted EBITDA improved from effectively breakeven last Q1 to $4.4 million in the first quarter of 2024, reflecting an adjusted EBITDA margin of 12% as operation profitability continues to improve.

We also delivered another quarter of positive free cash flow at $2 million a $4.8 million improvement over Q1 of last year.

In the first quarter, we signed new client wins, product expansion, and renewals with leading brands such as Eli Lilly, Haleon, Homes.com, and Verizon, as well as publishers like the Tennis Channel owned by Sinclair.

Our financial results and client wins are gratifying reflection of our team's hard work and the power of our platform.

Another important part of what makes Innovid unique is our focus on innovation.

We push the boundaries of what's possible in the fast growing CTV industry.

And today, I'll share a few highlights of what we accomplished in Q1.

In February, we launched a series of first-to-market interactive ads in partnership with Paramount+.

During Super Bowl LVIII, the most streamed Super Bowl ever, the ad to engage consumers with a new Add to Watchlist units to promote Paramount+ content.

We also develop interactive ads for Pfizer, which drove viewers to their Let's Outdo Cancer website.

As live sports and other high-value content continues to shift to streaming platform, we believe this will further accelerate the increase in CTV viewership and advertising spend.

More recently, we were recognized as the Best Measurement Tool by Digiday in 2024 Digiday Video and TV Awards, which highlights the company's campaigns and technologies, modernizing video and TV.

This recognition exemplifies the power of our platform and the value our measurement solution provides to brands and publishers.

We do not only help measure the efficiency and effectiveness of CTV advertising, but we also empower them to act on that intelligence to optimize their investments.

Next, I'm very excited to share more about our new strategic initiatives at Innovid.

A few weeks ago, we were joined by clients and industry partners, including ANA, the 4A's, and the IAB at the New York Stock Exchange and via global webcast as we launch our Harmony initiative and products suite.

Our Harmony initiative was created to address some of the biggest challenges facing CTV advertising today.

By optimizing CTV advertising at the infrastructure level, we believe we can improve efficiency, enhance transparency and control, reduce carbon emissions, and increase ROI to ultimately provide better viewing experience that will benefit advertisers, publishers, ad tech platforms, and of course, CTV viewers.

Every day, our ad-serving capabilities, our award-winning creative technology, and our measurement capabilities help us deliver exceptional value to our clients.

Now with Harmony, we're adding an activation and optimization layer, powered by our CTV dataset and our unique position in the ecosystem.

On the data front, we deliver 1.3 billion TV ads a day and see trillions of data points giving us an unrivaled view of the ecosystem.

That covers programmatic and direct buys, the open web and walled gardens.

This means we sit in a unique position to be able to deliver, and as a result, see and understand 100% of what our clients run in CTV.

In addition, since we don't buy, bid on, or sell media, we are media agnostic and unbiased, which puts us in the best position together with our partners to solve the biggest challenges in CTV.

We are releasing a series of product innovation throughout 2024 under the Harmony product suite umbrella to openly share our unique data-driven CTV intelligence with the industry.

We believe this will help make the entire CTV advertising ecosystem better for the benefit of all: advertisers, publishers, DSPs, and SSPs, and of course, the viewers at home.

One of the first product innovations to be released as part of the initiative in Harmony Direct, which connects the Innovid buy-side ad server directly to the publisher ad server for the delivery of guaranteed nonbillable CTV ad impressions.

This streamlines the workflow for these types of campaigns to its purest form, removing all friction points, including technology hubs, fees, and energy waste.

With fewer hops and less budget going to intermediate, advertisers can drive better outcomes from the same investment because more is going to actual working media.

Harmony Direct also aims to lower the risk of latency and fraud, provide a greener supply path and improved fill rates for publishers.

Agency and publisher partners, including Assembly, CMI Media Group, PMG, RPA, and Roku are among the first to use Harmony Direct.

In line with our commitment to stay an unbiased true partner to our customers and publisher partners, we are offering an impression-based software pricing model for our Harmony product suite rather than a percentage of media model.

Harmony Direct, in particular, having a flat fee per impression model versus a take rate is increasing the amount of working media dollars that actually make their way from the advertiser to the publisher.

This is a true win-win.

Brands will have more a dose of a working media and publishers will have more revenue opportunities from the exact same budget.

As I mentioned earlier, we have a roadmap of Harmony products that will continue to be released throughout 2024.

We believe Harmony will better balance the value creation in CTV, which will accelerate budget shifting from linear TV to CTV.

While still in early days, we expect the Harmony strategy to help drive revenue growth over the long term.

By enhancing our cross-sell opportunities and strengthening our strategic positioning, our products are becoming more and more connected and integrated, increasing the overall stickiness of the Innovid platform.

However, since this initiative and product are still new, any commercial impact is not yet reflected in our 2024 guidance.

In summary, we had a great start to 2024 and are excited about the opportunities ahead of us.

We continue to innovate and release exciting new optimization capabilities to support and further drive the shift from linear to CTV.

Financially, we are trending towards our long-term financial goals of over 20% sustained growth and 30% adjusted EBITDA margins.

We believe we are well positioned to become the essential technology infrastructure for the future of TV advertising and to experience outsized growth when ad spend returns to its historic levels.

We remain committed to innovation and value creation for our customers and shareholders.

With that, I'll ask Tony to take us through the numbers and provide some insight into Q2 and full-year expectations.

Tony?

Thank you, Zvika, and good morning, everyone.

It was another strong quarter of profitable growth and an encouraging start to 2024.

We're pleased to report our second consecutive quarter of double-digit growth, our seventh straight quarter of year-over-year adjusted EBITDA margin expansion, and third consecutive quarter of positive free cash flow, all contributing to continued business momentum entering 2024.

Now let me dig a little more into the numbers.

First-quarter revenue grew 21% year over year to $36.7 million.

Breaking that down further, ad-serving and personalization revenues were up 23% year over year, while measurement revenue grew 11%.

As a percentage of revenue, ad serving and personalization made up 79%, while measurement accounted for 21%.

The growth in ad serving and personalization reflects the emerging stabilization of advertising spend and continued shift to CTV.

In fact, CTV revenue from ad-serving and personalization grew 22% over last Q1.

As a reminder, Innovid's ad serving and personalization revenue closely correlates with ad impression volume served through our platform.

Within this category, CTV impression volume increased 21% as more impressions continue to transition to CTV and represented 52% of all video impressions.

Mobile video volume grew by 38% and represented 37% of all video impressions, while desktop volume increased by 12% and reflected 11% of all video impressions.

Both mobile and desktop have been inconsistent throughout 2023, but demonstrated meaningful growth in the fourth quarter, and we are pleased to see that trend continue into the first quarter of 2024.

All three of these devices represent consumers watching streaming applications.

So it's also helpful to look at total video impressions, which grew 25% overall in the first quarter as compared to the first quarter of 2023.

The double-digit growth in measurement revenues reflects the continued enhancement of our measurement capabilities to take full advantage of the valuable dataset generated from the ad serving side of the business.

While the measurement business model is more subscription oriented than ad-serving, there is some seasonality with an anticipated step down from Q4 to Q1.

As Zvika mentioned, we expect our unique ability to combine creative, delivery, and measurement solutions to provide differentiated client value and be a catalyst for continued revenue growth.

It should be noted, however, that while we are pleased with this quarter's revenue growth, ad spend in Q1 2023 was materially impacted by a challenging macro environment.

While we experienced a meaningful year-over-year improvement in the first quarter, we don't expect a continued sequential improvement in quarterly growth going forward as the quarterly comps continue to improve.

Now moving on to costs and expenses, revenue less cost of revenue, calculated out to 76% of revenue, improving from 73% in Q1 last year.

Our margins continued to improve as the business scales, reflecting the operating leverage embedded in our business model.

Q1 total operating expenses, excluding depreciation, amortization, and impairment, totaled $37.2 million, an increase of 1% from $36.7 million last year, but supporting 21% more revenue than in 2023.

Employee count at the end of March was 472 as compared with 465 at the end of Q1 2023.

We remain committed to managing our cost base while making strategic investments in high-growth areas to drive improved profitability and generate long-term value creation for our shareholders.

Q1 net loss was $6.2 million or a per-share loss of $0.04. This compares with a net loss of $8.6 million and per-share loss of $0.06 in Q1 2023.

The outstanding common share count at quarter close was 143.9 million shares.

Adjusted EBITDA in the first quarter was $4.4 million, representing a 12% adjusted EBITDA margin, a $4.3 million improvement as compared to adjusted EBITDA of just $100,000 or 0.1% adjusted EBITDA margin in Q1 last year.

You may remember that adjusted EBITDA margin each quarter in 2023 was an improvement over its equivalent quarter in 2022, and we have continued that trend in the first quarter of 2024.

These improvements reflect the impact of sustained revenue growth, lower cost of revenues as a percentage of revenue, and operating cost that grew nominally over the prior year, demonstrating the leverage inherent in the operating model.

Turning to the balance sheet and cash flow, we ended Q1 in a strong financial position with $31.6 million in cash and cash equivalents with no outstanding balance on our revolving debt facility.

As a reminder, we have $50 million available on that debt facility.

On a net cash basis, or to say it another way, cash and cash equivalents less outstanding revolver balance, the $31.6 million on hand at the end of Q1 2024 is an improvement compared to the $29.6 million on hand at the end of 2023 and $25 million at the end of Q1 2023.

During the quarter, operating cash flow was $4.7 million and free cash flow was $2 million, an improvement of $4.8 million over the $2.8 million of free cash flow used in Q1 2023.

If we look at free cash flow on a trailing 12-month basis, we have seen an improvement of $22.1 million as compared to the same 12-month period ended March 31, 2023.

Finally, let me touch on our outlook for the second quarter and an update for the full year 2024.

We are encouraged by both the strong finish to 2023 and continued momentum into 2024 and remain committed to our long-term financial target of 20%-plus annual revenue growth and 30%-plus adjusted EBITDA margin.

We are confident in the underlying strength of our business, opportunities for disruption in the market, and our ability to grow revenue in a profitable way.

We see 2024 as a meaningful step towards achieving our long-term target.

In the second quarter of 2024, we expect total revenue in the range of $37.5 million to $39.5 million, representing 9% to 14% year-over-year growth.

We expect Q2 adjusted EBITDA in a range of $5 million to $6 million as compared to $4.5 million in the second quarter of last year.

For the full year, we expect revenue of $157 million to $163 million, reflecting 12% to 17% annual growth and adjusted EBITDA between $24 million and $29 million.

We had a strong start to the new year with continued revenue growth, margin expansion, and free cash flow generation.

With exciting new product offerings, like Harmony, added to our existing capabilities, we believe we can continue to bring more value to our clients and reimagine what's possible in the industry.

We are proud of our accomplishments and look forward to taking a leading role in improving the ecosystem for everyone.

As Zvika mentioned, we remain committed to continued execution, innovation, and value creation for our customers and our shareholders.

This concludes our prepared remarks.

Zvika and I are now happy to take some questions.

Operator, please begin the QnA session.

(Operator Instructions) Matt Condon, Citizens JMP.

Thank you, guys, for taking my question.

My first one is just on demand throughout the quarter.

Can you just give us an update just on the health of the overall market and maybe trends that you're seeing into 2Q?

And then stepping back, maybe with the reorganization of the sales force in 2023 and with the product initiatives around Harmony Direct, can you just -- well, just the Harmony initiative, more broadly, or Harmony Direct instant optimization, can you just talk about how your conversations with advertisers are coming and maybe any adoption that you're seeing of these newer initiatives taking off?

Thank you so much.

Sure.

Hey, Matt.

On a macro perspective, we are seeing something similar to the second half of 2023.

We see a stable environment.

Still, it's less than, quote unquote, a normal environment, and we see stable below normal but something that's more predictable.

I would say at the same time, we need to remember that the second half of this year.

So we see this trend moving into the second quarter also.

But the second part of the year, we also have -- we have a combination of election and Olympics, and that can affect the industry dynamics when it comes to advertising.

But overall, we're definitely seeing an improvement year over year and believe that will continue for the rest of the year with -- definitely to keep an eye on the second half.

In terms of the products around Harmony, I assume we'll have more questions and follow-ups in the future also on that.

As an initiative, very excited about it in terms of initial customer response.

You could even see on the launch, we have the video on our website of the launch event.

We had there not just customers and partners, we also had three industry -- very strong industry groups that represent the buyers, the advertisers, the agencies, and the publishers, that platforms.

That's the ANA, 4A's, and IAB, all on stage with us.

So Harmony is hitting on absolutely the top critical challenges within CTV.

So as expected, we definitely have a strong interest, I would say, first and foremost, from advertisers, brands, and agencies, and of course, publishers.

At the same time, these are early days, right?

So we engage in conversations immediately.

These are very important topics for everybody in the industry.

At the same time in terms of revenue, we just launched it.

So these things usually take time.

So we don't -- while the investment is clearly included in the operating plan, we don't expect -- in our guidance, we don't include the revenue from Harmony just yet.

Shyam Patil, Susquehanna.

Good morning.

This is Jason on for Shyam.

Thanks for taking our question.

On the Harmony platform, you mentioned it works with DSPs on that.

Can you elaborate more on how that works and can you provide any examples to that?

Thank you.

Thank you, Jason.

Can you repeat the question -- the first part of the question?

Not sure I heard you clearly.

On the Harmony platform, you mentioned that it works with DSPs.

Can you elaborate on how that works and can you provide any examples to that?

Of course.

So Harmony is working not just with DSPs.

Basically, maybe give a very quick overview of what it is, Harmony is designed to work with everybody in industry.

So that's advertisers; agencies; the tech platforms; and programmatic tech platforms, that's DSPs, SSPs, and publishers; from a tech perspective, sell-side ad servers.

So the concept is to balance the entire CTV industry in a way that will tackle challenges that we're seeing today, which are -- they come with the territory when you're switching from linear broadcast television to a digital environment.

It brings with it things like transparency, frequency management, measurement, fraud.

Although all the things that come with digital, the goal of Harmony is before CTV becomes as big as television or becomes all of television to all of us or together programmatic platforms, ad servers, buyers, sellers to create a better industry for everybody.

So the DSPs definitely have a critical component in programmatic.

Basically, it have a critical component of this because based -- it allows -- a programmatic environment allows to make decisions in real time.

If you want to manage things like frequency, extended reach, optimize against outcome., this is something that the programmatic platform -- the programmatic media buying platforms and selling platforms allowed to do.

Now, Innovid is an ad server on the buy side.

We have no desire to be a DSP.

So we are partnering with them and the way to do it is by sending signals.

We see 100% of the media plan.

We see 100% of the campaign, which is nobody else in the industry except other ad servers like Google, campaign [means] you actually get to see everything.

So what we're doing with Harmony was saying, instead of keeping this information just in our system, allowing our customers -- to allow this information to go into something like a DSP, SSP, and publisher, so they can optimize.

With the 100% view that we have, they usually have 10% to 30% view.

We see everything.

So the goal with the Harmony is for us to share that with them and they can optimize against that.

And in this case, everybody wins.

But clearly, this is a very big initiative.

It can take an entire hour or three to share and that's on our website on the homepage.

Matthew Cost, Morgan Stanley.

Thanks for taking the question.

I think your commentary about what you're seeing the overall market, it sounds constructive, you're talking about seeing some real improvement, especially given the easier comp in 1Q and stabilization.

But it does sound like there's areas of strength and weakness.

Most of what we're hearing from checks and from others in the ad industry year to date is pretty positive commentary, broadly speaking, in terms of just volume of ad spend and even impressions at the market levels.

I guess what are the areas of particular strength and then weakness that you would call out that you're seeing year to date?

Thank you.

Yeah, great.

Thanks, Matt.

I think we're really encouraged by the -- just the amount of impressions that are carried over from the fourth quarter of 2023 into 2024.

So just a strong start to the year and even with a bit of an easier comp in Q1, we're pleased to see some of the verticals that were strong before, continued to be strong.

And some that had struggled last year, you maybe take a bit of a step forward.

I mean that said, there's still some inconsistency between verticals.

And then as we look out over the rest of the year, what we've saying is there's potential headwinds and tailwinds, for sure.

And on the headwind side, just the overall shift to connected television continues to happen.

Things like live sports, things like more ad-supported content, and for us, those are all real positives.

And what we don't know is when it's going to take effect and the amount that will take effect when it does.

On a potential headwind size for us, we have the election cycle that's coming, which granted, it drives more volume and rising tide lifts all boats.

But as you know, we support brands.

And so it could have a bit of a cooling effect to brands in the second half of the year.

And the other part that Zvika mentioned is the Olympics.

And again, that's great for the brand awareness, in general.

But a lot of times what the brands will do is look for more sponsorship than actual advertising.

So there's just this -- there's some uncertainty and we've baked that into our forecast.

We feel pretty confident around that.

And I think we're pleased that we were able to raise the guidance overall and actually tighten the range from what we had disclosed before.

So I think it's kind of a combination of those things.

But in general with the industry, we're seeing a stabilization, and again, same trends in the verticals that continue to do well and some that -- and I'll call, checkout is one that has gotten a bit improved from last year.

So that's how I would summarize how we're seeing things.

(Operator Instructions) Laura Martin, Needham.

Hi, there.

The first thing, I think you mentioned that impressions for CTV grew about 21% and impressions for video grew about 35%.

So I'm curious as to why you think non-CTV is growing 50% faster than CTV.

What's the trends you're seeing in the marketplace there with your brand clients?

Yeah.

I mean, for the different categories and we had this same effect last quarter where the mobile in particular was -- had a higher growth rate than CTV in the fourth quarter.

And it's -- it, really in these two quarters in particular, comes down to some comparables and really the comparables in the prior year.

I think we're pleased that overall streaming transactions are up significantly year over year and that's the trend.

So the mix between mobile and CTV, while it's interesting, it's hard to look at one quarter individually and draw a lot of conclusions from that.

But again, the broader trend is that streaming impressions overall are up and CTV has grown over 20%.

So I think those are all real positives for us.

And then

--

And I would add to that -- what I wanted to add is that, if remember, since COVID started, what's interesting -- four years ago is when we saw a lot of volatility, CTV never, at least from our -- not sure in numbers, in terms of impressions, went down year over year or quarter.

Like it was always kept going up.

Well, definitely what we call video, mobile, desktop, digital, video, absolutely, so quarters where it had a minus growth -- when it was shrinking, so from that perspective -- and CTV always went up.

So in terms of improved economy, you may see spikes in year-over-year growth.

But in absolute numbers, it's not material.

So that's on that.

But you wanted to ask a question so?

Yeah, just wanted to ask, so one of the things that on your Analyst Day you focused on was that you wanted to bundle -- you wanted to more successfully bundle like the core product with like your TVSquared product.

Now we're adding the Harmony product.

Is the Harmony product part of the bundle?

Does it make -- does it continue with this bundled strategy of putting your products together?

And how does the pricing relate -- compare to your core product pricing, which used to be $0.32 round numbers?

Is it a similar price point?

Could you talk about that, the bundling and the price point?

Sure, sure.

Absolutely.

And thanks for referring -- I think that was back in September or November of last year.

It feels years ago.

Yeah, back then, we already started talking about -- we presented the notion of optimization.

We could not, at that point, uncover our entire roadmap and strategy around Harmony.

So we refer to it that time as optimization, which basically, to your point, absolutely, that's if you bundle, let's say, three products, which is the creative technology, the delivery technology, which is our ad server, and then with measurement, what you refer to TVSquared, it's acquisition from two years ago.

It's our measurement products.

So we had these three components that already work together beautifully, the ad server feeds the measurement 1.3 billion -- actually several billion data points, 1.3 billion TV impressions a day.

So that already works together.

What really ties, if wrapping everything together is the optimization, which now we gave it a name, it's Harmony.

And it's an entire industry initiative.

That's absolutely -- basically, what it's looking to do is to optimize any component of the entire CTV industry.

And that's the creative, the delivery, but also the media component, things like reach, frequency, audiences, outcomes.

So that is a major kind of bundle and wrapper around all these things because what it wraps, it's not just the technologies we provide, which is the creative, delivery, and measurement.

But also the media side by integrating with DSPs, SSPs, and publishers.

It is looking to optimize all components of CTV -- the CTV advertising industry.

So from that perspective, it's something that connect everything better together in the entire industry, and that's where the name Harmony came from.

And that's the reason we had the ANA, the 4A's, and the IBA with us because it's really bringing kind of connecting -- creating a better connecting tissue for the entire industry.

And as to the pricing, it's connected to that because today I mentioned things that I never mentioned before, things like media and DSPs and SSPs in terms of effecting and touching and getting ourselves involved on that side of the industry.

And the way we're doing it and making sure that we're staying unbiased and staying away from becoming part of this is the pricing model.

So the fixed pricing model that says no matter what technology and what efficiency we're bringing to the industry and what outcome, we're staying with fixed CPM, like you mentioned, like ad-serving, which guarantee that we're not -- there's no take rate.

We're not part of the food chain.

We're enabling the food chain.

We're enabling better results.

We're not -- we did not share publicly specific pricing, but the pricing model is the same as an answer in terms of it's a fixed number multiplied by volume and that will generate the Harmony-related revenue.

We just didn't share publicly the exact rate card as we are now starting to close our initial deals in the market.

Okay.

And is this going to be meaningful in '24?

Or do you think that becomes meaningful in '25?

What's the timing of when Harmony becomes a meaningful contributor to revenues do you think?

Tony, do you want to take that?

Yeah.

No, I think it's still pretty early.

I mean, this is this is a big industry.

Brands are going to move at their own pace.

It's hard to say at this point, which is why we haven't included it in guidance.

Certainly for '25, we think it will have effect and it's probably a little bit of a to be determined for 2024 and will -- as we see what the adoptions are like, we'll certainly keep everyone updated and incorporate it as appropriate into future guidance.

But certainly, going into 2025, we think it will have a meaningful impact.

At this time, there are no further questions.

I'd like to turn the call back to management for any closing remarks.

I wanted to thank everybody for joining us today, all the analysts, shareholders, even some of our partners, and of course, employees.

I'm extremely pleased with our first-quarter results, the momentum that we started the year, exceeding expectations across top line, bottom line, free cash flow.

And as you heard, I'm also incredibly excited about the initiative, the Harmony initiative, and the products that we launched and share that we're going to continue to launch throughout the year and our ability to continue to innovate while keeping the financial -- strict financial framework, both at the same time, invest in areas that as we just discussed, are going to generate further momentum and growth for years to come.

I look forward to keep updating you every quarter on our progress.

There is more content also on the website on this Harmony initiative.

Have a great day.

Thank you so very much.

Bye-bye.

but this concludes today's Innovid first-quarter 2024 earnings call.

Thank you for attending and have a great day.