Professional Diversity Network Inc (IPDN) 2013 Q2 法說會逐字稿

Welcome to the PDN Q2 2013 Professional Diversity Network Inc. Earnings Conference Call. My name is Trish and I will be your conference operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct and question and answer session. Please note that this conference is being recorded.

Please also note that this call, certain information presented contains forward-looking statements. These statements are based on management's current expectations, and are subject to risks, uncertainties, and assumptions.

Potential risks and uncertainties that could cause the Company's business and financial results to differ materially from these forward-looking statements are described in the Company's periodic reports filed with the SEC from time-to-time. All information discussed on this call as of today, August 12, 2013, and Professional Diversity Network does not intend and undertakes no duty to update future events or circumstances.

I will now turn the call over to James Kirsch, CEO of Professional Diversity Network. Please go ahead.

Thank you, and thank you all for joining us today. We're very excited to have the opportunity to update you upon our business. We are fortunate to be in a position where we can put our work into a place to serve the unemployed, and the underemployed, in the United States of America, and be part of this country driving forward to economic success.

Joining me on the call today will be our Chief Financial Officer, Mr. David Mecklenburger, and also the founder of our flagship site, iHispano.com, our Executive Vice President, Mr. Rudy Martinez. During the call today, we will provide you with an overview of what we believe are the most important aspects of our operations during the quarter. Then, our Chief Financial Officer will provide the financial results for the quarter, and finally, we will open up the call to you for your questions.

The second quarter was period in which we invested in the foundation of our future success. There were three primary initiatives this quarter that constituted the core of that investment. Number one, our LinkedIn relationship. For those of you on the call today who might be new to the company, I would like to take a moment and explain to you the context of our business relationship with LinkedIn.

The company entered into a partnership with LinkedIn that became effective January 1, 2013, whereby the LinkedIn Corporation is now able to sell Professional Diversity Network's products and services. We consider this to be an amazing opportunity for our future growth and success. But also to be able to connect employers who want to reach diverse candidates on a truly massive scale.

The economic construct of the relationship is such that the Professional Diversity Network receives 20% of all the products that LinkedIn sells up to a $50 million mark. After that, we receive 15% of sales thereafter. Therefore, it is in the company's best interest to do everything that we can to promote and to provide support and services for the products of ours that LinkedIn is selling to their customer base. To that effect, during the quarter we supported LinkedIn in three primary manners.

First of all, we confirmed and instituted into our operational structures, the activities that are core to onboarding new clients, and providing success for those clients going forward in terms of significant diverse applicant flow, and reporting of that activity to LinkedIn's customers.

Second of all, we integrated LinkedIn functions into our platform to provide our users with the ability to access their LinkedIn profile, and their LinkedIn contacts in a more efficient way to provide integrated across the social graph recruitment by affinity of culture and race.

Additionally, we supported LinkedIn's communication outreach campaign to their customers about the Professional Diversity Network, which LinkedIn held via a webinar that was open up to all LinkedIn customers, and promoted to all LinkedIn customers through InMails that went out through the LinkedIn platform, and also to direct phone contact to over 1,000 potential clients.

During the second quarter, we brought on numerous new customers via our LinkedIn relationship. We have successfully onboarded these customers, and we believe that in the months and years ahead we can mature this sales channel together with our partner LinkedIn.

The second major accomplishment that we had this quarter was the enhanced launch of our ERICA product. ERICA stands for the Employer Recruitment Intelligent Compliance Assistance. This product has been built and enhanced in order to assist companies be compliant with EEO and OFCCP rules and regulations.

I want to stress how important our management team believes that this new enhanced is, partially because of the anticipated release of new regulations from the Department of Labor and the OFCCP that is contemplated to broaden the scope of regulation to include additional impacted classes, and also lower the thresholds of companies that must be compliant.

It is important to note that the outcome of our investment into the enhancement of this new compliance services combines significant applicant flow with the compliance solution, something we believe is new to the industry in the scale that we are bringing it today.

We are now in a position to offer our customers and future customers additional resources that will increase their return on investment for their diversity recruitment spend. The new ERICA product enables us to automatically capture and secure all clients' jobs electronically.

We are also able to take those jobs now and distribute them, in addition to the 8 locations that we own and operate on the Web, and our extensive partner network, we now will be able to distribute, and are distributing to over 3,500 additional state and local employment agencies, and documenting that distribution and efficacy in on-demand reporting, including screenshots that auto-capture each job posting we place on the Professional Diversity Network, and the job views, and the job applies that have occurred by the affinity group on the Professional Diversity Network.

And furthermore, we are archiving those records for a full 60 months. So, in addition to providing on-demand reporting, we are also archiving and storing the information for our clients.

Three, we have enhanced our diversity recruitment platform to provide even more benefit to the Professional Diversity Network users. We have incorporated through acquisition of Careerimp advanced semantic search into our platform, which enabled us to create a product that we call Jobs For You, which in essence is jobs for a jobs seeker specifically as matched against their LinkedIn profile. This is a tab on our site where a job is identified with a user's individual name, and those jobs are delivered to be able to be coordinated with their particular skills, background, and education level, enabling them to have a more productive job search.

We have also used this new technology to generate automated employment opportunity alerts that go out to our registered users, enabling them to become aware of new jobs that are posted to our website on a daily basis, that match their profile by occupation and geography. Furthermore, we have built a new function into our back-end recruiter tool that allows recruiters to use the same semantic search to source candidates.

We believe that these new enhancements will enable us to better serve our user base. Additionally, we have launched a product that enables our user to automatically optimize their resume against a job that they are applying for so that they can have a better chance of going through the application process, and successfully securing an interview, so that they can become employed with the company that they desire. By being able to optimize the resume, we are able to provide an enhanced service for our job seekers by enabling them to get the content of their resume through an applicant tracking system without being screened out to a tremendous extent.

We do not charge for this service. We provide it for free for our job seekers, and we are already starting to see enhanced results in terms of engagement and applicants being processed through our new optimizing system. Furthermore, we have increased our already substantial diversity recruitment job distribution network. We now are distributing our jobs through the VFW's Vet job site, disablement, ebony.com, jet.com, and other professional organizations and affinity sites.

We believe that these investments that we are making into our business now will position us to drive successful career outcomes to diverse Americans, and create value for our stockholders, and our team members.

Before I turn the call over to David, I would briefly like to introduce him. On July 17, 2013, the company promoted David as the company's Chief Financial Officer and Secretary, succeeding Mrs. Newman. Mr. Mecklenburger is 53-years-old, and has served as the Vice President of Finance of the company since June of 2013. David has over 25 years experience in financial management with both public and private companies.

Prior to joining the company, Mr. Mecklenburger served as Vice President of Business Integration for General Cable Corporation, a publicly traded global provider of copper and aluminum, and fiber optic wire and cable products. From 1989-2009, Mr. Mecklenburger served as the Chief Financial Officer, and Chief Operating Officer of Epcot International. Mr. Mecklenburger has a Bachelor's degree in accountancy from the University of Illinois at Urbana-Champaign, and a Master's degree in business administration from Northwestern University. Mr. Mecklenburger is a certified public accountant. David.

Thank you, Jim. I'd like to review the financial results and the financial position of the company as of the second quarter through June 30, 2013. Our revenues for that quarter were $977,000, representing a 35% decrease from the $1,514,000 reported in the same quarter one year prior.

Revenue from recruitment solutions in the second quarter was $556,000, compared to $1 million from Q2 the previous year. Revenue from consumer advertising and consumer marketing solutions in the second quarter was $421,000, compared with $514,000 a year prior.

Our total operating expenses for the quarter ended June 30, 2013 were $1,411,000, compared to $744,000 for the year prior period, an 89% increase. Net loss for the fiscal second quarter ended June 30 was $133,000, 118% decrease from the net income of $729,000 reported one year prior.

Loss from operations was $434,000 as compared to income from operations of $769,000 in the year prior period, a 156% decrease. A comprehensive net loss per share during the second fiscal quarter of 2013 was $0.02 per share, compared to comprehensive net incomes per share of $0.21 during the same quarter one year prior.

Our cost of services for the second quarter were $247,000, compared to $197,000 the year prior, and was primarily the result of additional personnel hired to support the continued development of our technology platform.

Sales and marketing expense for the quarter ended June 30 was $576,000, an increase of $251,000, or 77.1%, compared to $325,000 for the 3-months ended June 30, 2012. This increase consisted primarily of increases in salaries and benefits as a result of building up our sales and marketing team in the second quarter.

General administrative expenses were $527,000 in the second quarter, compared to $201,000 for the 3-months ended June 30, 2012, and consisted substantially of increased costs of operating a public company.

Now reviewing the balance sheet. For this discussion I'm going to compare the second quarter of this year to the first quarter of this year, rather than comparing it to the second quarter of the prior year as we had our initial public offering in the first quarter of this year, and it makes a more relevant comparison.

Our cash position is strong with $20,140,000, as of June 30, a $373,000 or 1.8% reduction from the first quarter.

Accounts receivable over $447,000, a reduction of $319,000, or 41.7% compared to $766,000 in the first quarter, and it was attributable to a reduction of receivables from the company's prior relationship with Monster Worldwide, partially offset by a corresponding increase in receivables from the company's direct sales partner, Apollo Group, Inc.

Total assets for the period were 400 -- I'm sorry, were $22,474,000, a reduction of $525,000, or 2.3% lower than the $22,999,000 that the company reported at March 31, 2013.

Accounts payable at the end of the second quarter were $255,000, 15.5%, or $47,000 less than the previous quarter end, which were $302,000, and the deferred cash liability as of June 30, 2013, was $104,000, compared to a deferred tax liability of $196,000 at the end of the first quarter of this year.

Total stockholder's equity at June 30 was $21,328,000, a reduction of $191,000, less than 1% lower than the $21,519,000 reported at March 31, 2013.

Now I'd like to turn it back to Jim to give his closing remarks.

Thank you, David. And once again thank you all for joining us this afternoon. We look forward to reaping the benefits of our time, energy, and capital investment in this diversity recruitment platform. We do address a very large and growing marketplace, and we believe that we are very well-positioned for the future.

I now would like to take your questions. Operator.

Yes, thank you. We will now begin the question and answer session. (Operator Instructions). We have no questions in the queue at this time. I'm sorry we do have one now from Bill Sutherland. Please go ahead.

Thank you, and thanks for taking the questions. I was curious if you had any information that you can share on bookings as you go into Q3, and I was also going to ask about the new customer -- the new LinkedIn customer adds that you had in Q2.

Thanks for your questions, Bill. This is Jim. First of all, I'm going to try to give you as much information I can without violating our confidentiality with LinkedIn. As I said in my statements, we have onboarded a number of customers through the LinkedIn relationship. That number was significantly more than it was in the first quarter. We're not going to be giving detail on the exact amount of customers, or other details around that.

I will also tell you that our sales team, and the investment that we made in our internal sales team, is really starting to come together in formation. We have made, as I said in our first call, we made a significant investment, both in our capital and in our time in the establishment of our own sales force. We also have implemented tools such as Salesforce.com, Data.com, a number of other tools for our sales team to be able to use, and have trained them on those tools. And we have seen an increase in our pipeline from the first quarter to the second quarter of approximately 350%.

So, our pipeline internally is growing. I met just last week in Mountainview with our partners LinkedIn, and they are experiencing also good, healthy demand for the product as well. So, we're encouraged at this very early stage. It is very early. I want to stress it's very early, and most of our interest and focus right now is in and around in supporting the LinkedIn relationship, but we also are spending time, energy, and capital on building out our own sales team.

And just so I'm clear, Jim, on your definition of pipeline there is that's a lead situation?

Yes, we're qualifying a pipeline when we have a proposal that has been submitted.

Okay. Did you -- do you have any other data as far as the progress you made in the quarter that we can get a feel for kind of the level of momentum?

I don't know what data points you're looking for. We -- David can cover with you what the revenue was in recruitment revenue, and he certainly can break that out for you.

And I'll also note that we do recognize the revenue ratably over the period of each contract we sell. I'll point out that, while we were showing $977,000 of revenue for the 3 months, we also had recorded $565,000 of deferred revenue, which would have related to orders that we had booked but not yet recognized the revenue for the quarter.

Okay. That's helpful. Okay. Thank you both.

You're welcome. Thank you.

Our next question comes from Tony Polak from Aegus Capital. Please go ahead.

Good afternoon. Could you give us an idea of the sales force, what percentage, or is there a delineation there between geared towards the LinkedIn and geared towards your own sales team, and not linked to LinkedIn?

Yes, sure. We absolutely can. So, in essence, our sales force is concentrating on selling our products directly, and any activities that would occur through LinkedIn aren't supported by our sales force. We currently have 16 people who are directly selling our products, and then we have a number of also people that we have outsourced that we use to do prospecting as well.

Okay.

I don't think we have specifics, but LinkedIn has a sizable sales force that sells their products, which now includes our products.

Right. Could you give us a little idea how the first month in a quarter have gone since that's not a forward-looking statement? The first of July through the middle of August.

Yes, I mean, we're not reporting against that. I would say that we are consistently seeing that our engagement is increasing, and we're consistently seeing more activity ourselves, and through the LinkedIn relationship. So we see a very positive trend there. But again, Tony, we're in the earliest stages of this, and the next few months are really important, as is 2014.

Have you started the buyback program for the company?

The buyback [flow] program is in place, and there's a certain windows that are available, and the buyback will be implemented in accordance with those windows of available trading. And I have also filed that I will be buying stock in open windows myself.

But at this point we have not purchased any stock in the open market.

We have not.

Okay. Thank you.

Thank you, Tony.

Our next question comes from Walter Ramsley from Walrus Partners. Please go ahead.

Oh, thank you. Congratulations. Looks like a good quarter. Checking through quickly before the call, and all I got was the press release, which didn't have any of the financial statements there. Are they posted on the website somewhere? I didn't see them on Edgar either. Is there some way to get them?

They're being filed very shortly, filed with the SEC.

Okay. So, in the quarter, could you just tell us quick what the non-cash stock option expense was, and what the plus or minus on income was from that derivative liability?

Yes, we recorded a change in fair value of the warrant liability. That warrant liability went down by $200,000 in the quarter.

So, that helped the earnings by $200,000?

Yes.

Okay. And the stock option expense. Do you have that one?

There was none in the quarter.

None. Okay. The ERICA product, I'm not really familiar with that. Can you just kind of spend a minute or two, and kind of explain to us what the potential market is for that?

Sure, Walter. So there's two things that drive -- two primary drivers of diversity recruitment. One is a need, and one is a want. On the want side we have the advent of the mulch-cultural majority, and the realization of a lot of forward-looking companies in the country that they need to diversify their workforce. And to do so, one of the best ways for a company to be effective is to work with a platform like ours that asks our job seeker to self-identify in an EEO-compliant manner. We're actually getting 86% of our user base to identify the affinity that they most relate to, which is giving us a really significant and powerful database.

So, when the other side of it is, on the need side, if there is a company that is doing business with the government, and it has contracts over a certain value, or it has subcontracts over a certain value, those companies must comply with OFCCP regulations.

And the OFCCP requires, among its requirements, that any company that has a contract at a certain level with the government, in order to be able to qualify for that contact and maintain that contract, and also avoid any penalties, has to distribute their jobs to diversity websites. They also have to distribute those jobs to state and local employment agencies, and they have to report against that, and keep that reporting in place for 60 months.

Now when we -- until recently, and when we went public, we did not have the technology in place in order to distribute automatically jobs to over 3,500 locations, and report against that in on-demand and archived reporting. We did make an acquisition of a company called Careerimp.

Careerimp brought with it some very special technology,and some very special technologists, one of which is a graduate from the Air Force Academy, and also has a graduate degree in computer engineering from MIT, and this gentleman led the team in creating the enhanced ERICA product, which in essence, enables us to reach into company's career center databases with their approval, automatically take their jobs into our database, then distribute those jobs to our locations, our partner locations, and to within a 50-mile radius automatically, 3,500 other state and local organizations.

Then provide reporting against those in a manner that not only shows where the jobs were sent, and not only where jobs were viewed, and applied to on our sites, but we're actually capturing a screen shot, so if a company is going to go through an audit, they'll be able to demonstrate a visual of that job being posted.

Now, it's really important to note that traditionally compliance is either done internally, which requires full-time resources to do and costs companies a lot of money, because they don't have these engineered solutions. Or it happens through some other third party that is really focused more on distribution and reporting, while we're focused on applicant flow, and now provide distribution and reporting.

The Department of Labor has had draft rules and regulations, new rules and regulations being circulated since 2011, and it's anticipated that these new rules and regulations are going to be adopted and put into place in the near future, and companies will most likely have to be compliant with these new rules and regs within the next 6 to 12 months, meaning that this is going to become more important, and more important to more companies, because it is contemplated that the level in which companies are going to be subject to this, the contract level will be reduced, in some cases down to just $10,000 of business with the federal government.

So we see it as an expanding marketplace, a regulated environment, and a solution that we can provide to our customers that will save them time, and will save them money, and deliver superior diverse applicant flow.

Well, it sounds pretty slick. Are you selling it standalone, or in combination with the other products, and is it a high-priced product, or is it kind of a loss leader? I mean, what's the sales strategy?

No, it's -- we have baked it into our existing product set. We are not going to run campaigns that are different. We're going to be running all of our campaigns in a compliant manner, and we believe by adding it to our offering without adding to the expense that we're able to be more disruptive to the marketplace.

I see.

Now what we can do is we can help companies who were traditionally applying these resources just to be compliant with the opportunity to be compliant, and at the same time, reach diverse candidates, and we feel that right now our objective is market share, and we feel pretty good about -- actually we feel -- we think that this is an outstanding product. We think it's the most significant product launch that we've had in the recent past, and we're really excited about the early communications that we've had with customers.

We recently attended the NILG Conference, where there are -- it was a gathering of many companies who are concerned about these compliance issues. It was a national conference, and we had tremendous amount of engagement with them, as we have had with clients during our conversations since we launched the product. We're really excited about it.

When was it launched exactly? When did it hit the market?

It was launched in July.

Oh, so it just came out.

It just came out. Right.

Okay. And then you guys made another acquisition, Resunate. Can you describe what that one was all about?

Sure. So what the -- and I had spoke about this during my remarks. But what the Resunate technology does, Walter, is it is very sophisticated semantic searching, and it's supported by leading engineers. So, what we have done, since the Resunate acquisition is, we have incorporated semantic searching into our job search environment.

And that has also been incorporated into our recruiter search environment, which means that when a user joins, and let's say they upload their -- they join with One Click LinkedIn, we have their LinkedIn profile. The system now, our platform now, automatically in real time compares their LinkedIn profile, which is now let's say the PDN profile, to 100,000 jobs instantaneously, and returns results that are relevant compared to the job description, and the person's profile.

Same kind of mechanism works on the recruiters side for searches of profiles, and also we enable our user with One Click, as they apply to a job, to optimize their resume. So, without leaving the system built into our platform, our users now can have a specific optimized resume experience against a particularly job they're applying for. The way this works is, it compares the user's resume to the job description in real time, and then it provides results overall with a score, an individual by phrase results of what portion of the resume is less potent, and what is more potent with a color code.

And then the user can go in, and it gives prompts of how to change a couple of words in order to be more relevant to that resume, because what happens is the applicant tracking systems have filters in them. Those filters have a number of key words, and Resunate has algorithm that understands those key words, and can help the user modify their content so that they're incorporating some of these key words and phrases to help them get more interviews per application.

Sounds great, okay.

We've seen really good results from users who have reported back to us that they are getting increased application -- interviews from applications by using the Resunate tool. Now Resunate is available now to the general public at a $49, 30-day -- it's a 30-day subscription for $49 to Resunate. Or if they're a PDN user and they are registered, they get to use it for free.

Walter Ramsley. Yes, sounds good. So this one last question as far as the overall economy is concerned. The unemployment rate is kind of creeping down. Has the big macro-economic picture had any effect on the company's performance, or do you think it might?

Yes, I will say more than I believe. I'm confident that if the unemployment rate continues t creep down, the demand for hiring will go up, and it will make all those that are in our business, or most of those in our business, I think will do better.

I will say that it's been interesting. The first quarter we really invested a lot of time and energy in getting LinkedIn incorporated into our operating structure, both on the people time and the technology side. And on the technology side, on the client side, and the user side. So there was a lot of heavy lifting.

Personally, myself, I spent a lot of time as part of the IPO process, and was gone for a large portion of the first quarter, and couldn't really focus too much on the operations that were really -- Rudy and the rest of the team really managed the business day-to-day at that time.

In the second quarter, what we've done is we've focused a lot on the user experience, incorporating the acquisition into our platform, supporting LinkedIn more on the sales side now, because we've incorporated, and I think successfully, integrated it on the back end.

So now were doing everything that we can, not just with LinkedIn, but with the clients who will join us through the LinkedIn relationship to make sure that we're providing them with the client experience that's going to encourage them to be a long-term partner of ours and LinkedIn.

So, we've been really focused, more in the first quarter of setting up shop, and the second quarter of looking outwardly facing more into the client world.

Okay. Well, maybe, one last question. I don't know if you want to venture there, but do you have an idea --

Walter, that's your third last question, Walter.

I know. Sorry. Is there a point where the company would break even, a revenue number that you'd like to share?

I will say that I think that we're being very watchful over the dollars that we're spending. We did have a loss this quarter, as we did last quarter. It doesn't sit well with the management team, but we know we're making an investment in the future, and we think that's a very important investment. And we're not giving guidance yet. We think it's still too early to provide guidance. But we are optimistic that our long-term success is within sight, and we're fighting like a beast to get there.

Okay. Thanks a lot.

Thanks, Walter.

Our last question comes from David Cohen from Raymond James. Please go ahead.

Hi, guys. Thanks for taking my question. Good call. Can you give me an idea of what sales headcount was at the end of Q4, at the end of Q1, and then at the end of Q2?

Sure. Let me without giving you exact data. Let me put it this way. In last year in 2012, during our relationship with Monster, we were prohibited from selling directly recruitment services. So, in essence, we had no sales organization. We started to make some initial hires in December of 2012, and then in the first quarter, and bleeding into the second quarter, we have increased those hires to build what we think today is a very promising sales force. And, David, I think we have 24 people currently within the sales organization, which constitutes direct sales --

24 people employed with the company, plus some outside resources.

Right. We use some outside resources in order to provide prospects and meetings for our existing sales people. So, if you look at our overall organization, our growth in terms of headcount has been, more than primarily, I think has been really focused on sales, marketing, and now we're starting to staff up with client services, as we're onboarding new customers.

So really, approximately 24 people then at the end of Q2?

Yes.

And then, what is the target for year end?

That's about the target.

We're stabilizing now with the build up of the sales force.

Okay. And then lastly, the ERICA product, is there a licensing opportunity for you there?

I didn't get -- I missed one of those words, David. What kind of opportunities --

Is there an opportunity for licensing of the ERICA product?

We have a -- yes, I mean, on the governmental side, we had a really interesting meeting with the state of Illinois. We're hopeful that that could mature into something. And we are having other conversations about licensing that technology to third parties who will be able to help their audience secure more interviews and more jobs.

Excellent. Thanks.

But, David, I also want to mention that we are offering Resunate directly to users online in an e-commerce environment. And we just acquired the company, and we just launched this. But what we saw in the first couple of weeks was that we were getting 22% of each individual that came to the site to sign up for Resunate for -- there's a kind of a beta that you can use it once or twice for free. So the early adoption was 22%, which really blew us away.

So, we're excited about the potential of monetizing Resunate, although we truly bought it as a tuck under, if you will, for our operations. We couldn't have launched the enhanced ERICA product without it. We couldn't have launched the enhanced semantic search, or the resume optimizing without it. So, it was primarily to bolster our foundation. But we think that there's an opportunity potentially to generate revenue off of it, and we're going to see if that dog can hunt, if you will.

Do you have any conversion numbers?

We're just right now, we're not reporting any transactional conversions. All I can tell you is that we did get a 22% adoption in the first couple of weeks of people who saw it to register and try it.

Excellent.

Thank you, David.

We have no further questions in the queue at this time.

Okay. If there are not further questions, I will turn it over to the Operator to conclude the call. Before that, I just want to reiterate I want to thank everybody for participating who has been on the call today. I want you to know that we're really excited about the opportunity we have to create shareholder value, but at the same time to provide economic opportunity for diverse Americans. We feel very strongly that by creating efficiency in the market that we can really help a lot of people, and we can do well financially.

Our conversations are telling us and reinforcing our belief that corporate America does want to hire diverse talent, and there is diverse talent that can fit those needs, and we're on a mission to make sure that we can put those two things together, and do so in a way that provides an economic return for our employees, our team members, and of course, for our stockholders.

For those of you who are investors and partners in our business, we greatly appreciate your support and partnership. I want you to know we're all dedicated to our mutual long-term success, and we look forward to working together with you for years and years to come.

So with that, I'll say goodbye on this call, and I'll turn it over to our operator for conclusion.

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.