Comscore Inc (SCOR) 2007 Q4 法說會逐字稿

Good afternoon, and welcome to the comScore full year and fourth quarter 2007 conference call. At this time all participants are in a listen only mode. Following today's prepared presentation instructions will be given for the question-and-answer session. (OPERATOR INSTRUCTIONS). As a reminder, the webcast from this conference call will be archived and available on the Investor Relations section of comScore's website following the completion of today's conference. And as a reminder, today's call is being recorded.

I would now like to turn the conference over to Mr. John Green, comScore's Chief Financial Officer. Please go ahead, Mr. Green.

Thank you. Good afternoon, and welcome to comScore's earnings call for our fourth quarter and full-year 2007. On the call today with me is Dr. Magid Abraham, comScore's President, CEO and co-founder. Before we begin, let me read the following statement regarding certain Safe Harbor provisions under the Private Securities Litigation Reform Act of 1995. Except for historical information all the statements, expectations and assumptions discussed during this call are forward-looking statements within the meaning of section 27A of the securities act of 1933 and section 21E of the securities exchange act of 1934.

These forward-looking statements involve a number of risks and uncertainties, some of which cannot be predicted or quantified. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following. The early stage of the market for digital marketing intelligence and the rate of development of that market, the rate of development of the Internet advertising and e-commerce markets, comScore's ability to retain existing large customers and obtain new large customers, continued growth of the Internet as a medium for commerce, content, advertising and communications, changes in comScore's data collection methodologies, inability to sell additional products and attract new customers, dependence on growth of international operations, product obsolescence with technological developments, volatility of quarterly results and analyst expectations, comScore's history of losses and the risk of future losses.

ComScore's utilization of net operating loss carryforwards and the other risk factors set forth from time to time in the Company's SEC filings. ComScore undertakes no obligation to update or correct forward-looking statements. I will now turn the call over to Magid.

Thank you, John. Good afternoon everyone. Earlier today we released our financial results for the fourth quarter and full-year which ended in December 31, 2007. As our fourth quarter and full-year 2007 financial results show, we are closing out an exciting year for comScore. We have successfully completed an IPO at the beginning of July that provided us with added flexibility to grow our business and increase shareholder value. We launched 10 new products in 2007. They all served to strengthen our product portfolio and client relationships.

We continue to expand overseas in 2007 with our opening of a sales office in Tokyo, Japan, which represents our first commercial presence in Asia. We have also continued to add new customers at a strong pace both in the US and internationally. With almost 900 customers worldwide comScore is clearly staking out its leading position and enabling monetization of digital media.

Fourth quarter 2007 revenue was $25.3 million which is an increase of 39% compared to the fourth quarter of 2006. A sequential increase of 13% over the third quarter of 2007. The (inaudible) performance is at the top of the range of the company's previous guidance for Q4 for 2007 of approximately $25 million to $25.3 million. For the full-year of 2007 we are reporting total revenues of $87.2 million, which is an increase of approximately 32% over full-year results of 2006.

We experienced strong growth in both our subscription based and project based businesses. We increased penetrations of our large existing customer base. We've added new customers at a rapid pace both in the US and internationally. All of these are factors that contributed to the strong revenue performance both in the fourth quarter and full-year 2007. We continued to make progress with our goals to grow our subscription business and to add new customers to our expanding customer base.

Our subscription revenue was $20.2 million for the fourth quarter, which is an increase of 49% over the prior year period. This accounts for 80% of comScore's total revenue for the quarter, which is in line with the 80% recorded in [2000] and 3rd quarter 2007. Project revenue of $5.1 million grew by 11% compared to the fourth quarter of 2006, and revenue from our existing customers totaled $21.8 million which is an increase of 39% compared to the fourth quarter of 2006.

Revenues from new customers increased to $3.5 million which represents a 40% increase compared to Q4 2006. During the quarter, we added a net of 58 new customers, which brings the total number of customers to 895. That is a net increase of 189 for all of 2007. Within this total customer count, the company added a net of 74 new subscription based customers in Q4. That resulted in a total of 813 subscription based customers, which is a net increase of 218 subscription based customers for the full year.

The international revenue reached $3.5 million in Q4, which is an increase of 103% compared to the prior year period. And it accounted for 14% of the company's total revenue, which compares to 10% of the revenue mix in the fourth quarter of 2006.

I will now turn the call back to John for a review of the financial results in Q4 and for the full year. After that we will provide our outlook for 2008 and open the call up for questions.

Thanks, Magid. Fourth quarter 2007 GAAP net income was $12.7 million, up $10.1 million or 390% compared to the $2.6 million in the fourth quarter 2006. Included in GAAP net income is an income tax benefit of $8.1 million due to the partial reversal of the valuation allowance offsetting certain deferred tax assets which consisted principally of NOLs. In addition, GAAP net income includes costs of $392,000 associated with the company's filing the registration statement for proposed follow on public offering common stock on October 31, 2007 that was subsequently withdrawn on November 23, 2007.

Excluding these two items fourth quarter 2007 net income would have been $5.1 million which compares to the company's previous guidance for GAAP net income of $5 million to $5.3 million. Including the GAAP net income of $5.1 million is approximately $200,000 in Canadian tax provision that was higher-than-expected due to strong Canadian performance that put the company into a taxable position faster than anticipated.

Reconciliation to fourth quarter 2007 GAAP net income with the non-cash measures that we used excluding these two items is set forth in the tables accompanying the press release. GAAP EPS for the fourth quarter 2007 was $0.42 on approximately 29.9 million fully diluted shares. Adjusted EBITDA was $6.6 million, an increase of $2.9 million or 77% compared to prior year period and includes approximately $400,000 in public company costs in the quarter 2007. This performance exceeds the company's previous guidance for adjusted EBITDA in the fourth quarter of $6.2 million to $6.5 million.

Our Company's adjusted EBITDA margin was 26%, an increase of approximately 5 percentage points as compared to fourth quarter 2006 and includes approximately 2 percentage points attributable to the $400,000 in incremental public company costs in the fourth quarter of 2007. Non-GAAP adjusted net income for the fourth quarter of 2007 was $6.4 million, an increase of $3.4 million or 113% compared to the $3 million in the fourth quarter 2006. Our company's previous guidance for non-GAAP adjusted net income in the fourth quarter was $6.2 million to $6.5 million.

Non-GAAP EPS was $0.21 per share. Operating cash flow for the fourth quarter of 2007 was $6.6 million, an increase of $4.2 million or 175% compared to $2.4 million in the fourth quarter of 2006. Free cash flow was $5.6 million, a 300% increase compared to the $1.4 million in the fourth quarter of 2006. As of the end of 2007 our company held approximately $105 million in cash, cash equivalent and investments. Included in this amount is approximately $76.7 million in net proceeds raised by the company through our initial public offering of 5 million shares of common stock that was completed at the beginning of July.

Looking at the highlights for our full-year 2007 financial results, GAAP net income for the year ended 12/31/07 climbed to $19.3 million, an increase of $13.6 million compared to $5.7 million for 2006. Excluding the income tax benefit of the $8.0 million resulting from the partial reversal of the valuation allowance as well as the impact of the $392,000 related to the cost associated with the withdrawal of our follow on public offering, GAAP net income would have been $11.6 million.

GAAP EPS for the year ended 2007 was $0.88 calculated based on approximately 18.4 million fully diluted shares. ComScore's adjusted EBITDA for the year ended 12/31 of '07 was $18 million. The adjusted EBITDA margin for the year ended was 21%, an increase of 6 percentage point compared to the full year ended December 31, '06 and an increase of 7.3 percentage points after adjusting for the $1.2 million in public company costs incurred for the full year ended December 31, 2007.

Non-GAAP adjusted net income for the year ended December 31, 2007 was $16.3 million, an increase of $8.8 million compared to the $7.5 million for the full year 2006. Non-GAAP EPS for the full-year 2007 was $0.71 per share. Operating cash flow for the year ended December 31, 2007 was $21.2 million, an increase of $10.3 million or 95% compared to the $10.9 million for the year ended 2006. The cash flow was $17.6 million for the year ended December 31, 2007, 105% increase compared to the $8.6 million for the year ended December 31, 2006.

I will now turn the call back to Magid so that we can provide you with our outlook for 2008.

Thanks, John. So looking ahead to 2008, we anticipate continued strong growth for comScore as we expect the market for our services will continue to expand globally and into other digital formats, such as the mobile web. We hope to further deepen our penetration of our existing customer base and deliver enhanced value through our expanded and innovative product offering.

We also anticipate continuing to add new customers both in the US and internationally, and we plan to establish a commercial presence in France and Germany. We are aggressively investing in sales and marketing support, to support our recently introduced new products. We will continue to invest in new product initiatives that reinforce our leadership in digital media intelligence and will contribute to our future revenue growth. In particular, we hope to launch a service to measure interconnect usage of mobile devices.

But even with our investments in these new growth initiatives, we anticipate that the operating leverage of our business model will continue to result in strong earnings growth. We expect our margins, our adjusted EBITDA and our free cash flow to achieve strong growth in 2008, reflecting revenue growth, significantly outpacing increases in operating expenses and in capital expenditures. I will turn it back to John so he can provide you with more detail on the outlook for 2008.

Looking at our company's financial outlook for the full year 2008, we are projecting revenue of between $112.2 million to $113.2 million, an increase of 29% to 30% compared to full-year 2007. Subscription revenue is forecast to comprise approximately 82% of the full-year revenue mix. Our revenue forecast is based in part on our large existing customer base and expected retention rate. Approximately 71% of the revenue projections for the full year 2008 relates to the business that we already have under contract at the end of 2007, and also applies to our historical customer retention rate of over 90% to our projected subscription revenue base for the full year 2008.

We believe our revenue visibility is further strengthened by having approximately 35% of our projected subscription revenue in 2008 generated by multiyear agreements with terms of two to three years. For the full year 2008 we are projecting GAAP net income of $10.5 million to $11.5 million. A normalized effective tax rate of approximately 38.6% is assumed to be applied against full-year earnings before tax.

We are forecasting GAAP EPS for the full year 2008 of between $0.35 to $0.38 per share on approximately 30.2 million fully diluted shares. Adjusted EBITDA for the full year 2008 is projected to be in the range of $25.4 million to $26.4 million, an increase of 41% to 47% as compared to full-year 2007. The Company's adjusted EBITDA margin is forecasted to rise to a range of 23% to 24%, an increase of 2 percentage points, 3 percentage points compared to the full-year 2007.

We are also forecasting non-GAAP adjusted net income full year 2008 of approximately $16.7 million to $17.7 million. We are forecasting non-GAAP EPS of $0.55 to $0.58 per share. We are expecting approximately $1 million in incremental public company costs related to the first and second quarters of 2008 combined that are not included in the comparable period for 2007. For the first quarter of 2008 we are forecasting revenue of approximately $25.9 million to $26.2 million, an increase of 39% to 40% compared to first quarter of 2007.

Additionally, we are projecting GAAP net income of $2 million to $2.3 million for the first quarter of 2008. GAAP EPS for the first quarter 2008 is forecasted to be in the range of $0.06 to $0.08 per share on approximately 30.2 million fully diluted shares. Adjusted EBITDA for the first quarter 2008 is forecasted to be between $5.1 million to $5.4 million, an increase of 86% to 97% compared to first quarter 2007. The adjusted EBITDA forecast for the first quarter of 2008 results in an adjusted EBITDA margin of 20% to 21%, up 5 to 6 percentage points compared to the first quarter of 2007. And this concludes approximately 2 percentage points due to the incremental public company expense.

In addition, we have historically had seasonally high costs as a percentage of revenue in the first quarter based on such factors as payroll taxes and vacation accruals, plus a ramp up of hiring primarily in the sales force and technology groups, to support our anticipated revenue growth. We expect a similar trend in the first quarter of 2008.

We are also forecasting non-GAAP adjusted net income for the first quarter 2008 of between $3.1 million to $3.4 million with non-GAAP EPS for the first quarter 2008 of $0.10 to $0.11 per share. I will now turn the call back over to for Magid for closing remarks.

We are very pleased with our results in 2007, particularly with the acceleration of growth that we enjoyed in the second half of the year to about 40%, which resulted in outstanding margin growth. We are encouraged by the revenue and earnings momentum that we have as we enter 2008. We are focused on continuing to add value and help our customers leverage the power of the Internet to grow their businesses. And we intend to expand comScore's footprint both globally and into digital formats such as mobile. Most of all, we are committed to comScore's long-term growth and industry leadership. With that, we will open it now for questions.

(OPERATOR INSTRUCTIONS) Jeetil Patel, Deutsche Bank.

A couple questions here. You added more subscriptions on a quarter-on-quarter basis versus customers. Can you talk about what incremental products drove the faster subscriber number on a sequential basis? And a couple of quick follow-ups; I guess I'm trying to get more color on some of the new products.

We have had comScore Marketer is purely a subscription product, and in our CMS business, the comScore Marketing Solutions business, we have a trend going on which is that we take existing clients who are engaged with us on a project, and we are successfully turning them into subscription customers. The products really vary by verticals. So it is hard to give you any particular product other than comScore Marketer, which again I mentioned is really Media Metrix, 100% subscription.

I guess was there any particular industry vertical that was stronger in terms of the adoption rate in the quarter? And I guess in terms of renewal rates, you came off of a pretty big quarter from new renewals out there. I guess in light of the economic environment I am obviously there doesn't seem to be much shock in Q4, but can you discuss whether you are seeing any sort of hesitant kind of hesitation among customers? Or is it pretty straightforward as you exit the quarter and so far in Q1?

One of the areas where we had strong growth was our large media clients, and we have had success expanding our search product to search and our video tracking product, Video Metrix, those many of the companies we had signed up for that. As far as any kind of sign of slowdown or recession in the fourth quarter, we really didn't see that. Our growth was pretty strong and when you actually look at our deferred revenue you will see that as we go into 2008 we have pretty strong growth rates.

So again, deferred revenue was up at the end of December by 45% versus '06. And as Magid said, we have not seen any sign of our customers starting to cut back on their spending with us thus far.

And that is even true of financial services. So that gives us a lot of -- it is pretty heartening that even among those clients we're not seeing any slowdown.

William Blair & Co., Troy Mastin.

Good afternoon. What tax rate is contemplated in your non-GAAP EPS guidance of $0.55 to $0.58 for the year and to kind of $0.11 for the quarter?

Again, we are applying on an overall GAAP basis a blended rate of 38.6%. And so on a non-GAAP adjusted net income it is just the Alt Min tax, so should just be the Alt Min tax which is roughly about 3%.

And we have some taxes in Canada.

And then Canada on top of that is about 35%.

35% on just the Canadian income?

Yes.

Which I imagine would be quite small, so probably no more than about 5% overall?

That's correct.

Good, thanks. And then I'm curious how you think a Microsoft Yahoo! combination might impact your business. I think those are two fairly large clients. I imagine there could be some temporary work through the combination that might boost your business. Not sure if it would be a positive or negative once the two combined, if they did. Have you thought through that, and can you give us some insight?

First of all, in terms of impact on 2008 we think that this will probably take towards the end of the year for the merger to happen. So we don't see a reason right now for our anticipated business with both companies to be affected. What I can tell you is that our business with Microsoft was very strong in 2007 and continues to be strong. And if we want to take the acquisition of aQuantive as a guide, we didn't lose any business with aQuantive. In fact, that business seams to be increasing. And our business with Microsoft is increasing.

Longer-term if we look at the mix of products that are being bought, the one thing in common is Media Metrix and qSearch. But those we basically have program pricing so in other words if you have MSN buying it and Yahoo! buying it, the subscription is not going to be cut in half. And then the second element is that Yahoo! and Microsoft buy different things. So the portfolio of things they will buy from us, I think will expand if they ended up being a single company. And then finally, I think that there are going to be a lot of opportunities for selling new services as the two companies try to integrate.

Okay, good. And then I think there is a distribution of some of your shares from one of your major backers, a few weeks ago maybe in January. I'm curious if you are aware there have been any subsequent distributions and do you know how many shares are currently not restricted due to a lockup that potentially could be distributed at some point in time in the next few months.

In terms of the answer to your last question, it is about 5 million. Of course with the trading window that opens on February 12, then even those VCs who have board representation are able to sell. And then the first part of your question is that we are not aware of any other distributions or sales of a material nature that have occurred since that one VC that you referred to since that took place.

Okay, good. And then you mentioned you are considering a leap into mobile measurement. I'm curious what that would entail from a panel perspective; how the panel recruitment process would differ if it would require partnerships with mobile providers. If you can give us some broad strokes maybe as to how this would look and what might prevent you from launching because it sounds like you have not absolutely decided that you will get into this business. What is kind of the breakpoints make you decide to go forward with it or not?

We have decided to go into the business. I'm not sure what hedging you saw (inaudible).

Maybe its 2008 because you said you hoped to launch a service, so I thought maybe it is just timing, you're not sure you will launch in '08.

Our plan is to launch in '08, so the answer to your question about what does it entail and what would stop us from doing it. The panel that we would recruit would be smaller than the panel we would recruit for PCs. Obviously the advertising market is not as big, at least right now. It will increase as we go forward.

The way we will go after recruiting it is we will invite our existing panelists to join a mobile panel and we will try to get as many of them as possible to convert. And then we will use a variety of incentives to recruit additional panelists. But our objective is to maximize the overlap between the PC and the mobile wireless, so that we can give people an idea of, if a user is increasing their web usage; their mobile usage, what impact is that having on the PC aspect of their usage.

As far as -- we have a number of recruiting methods that we are contemplating for competitive reasons I am not really going to get into that but suffice it to say we have all those expenses anticipated and planned for.

Okay, great. Thanks.

(OPERATOR INSTRUCTIONS) William Morrison, ThinkEquity Partners.

Good afternoon. A couple questions. I guess the first is John, if you looked at your guidance for the first quarter at the high-end even below the high-end, it would imply an acceleration, year-over-year acceleration in growth. But your full-year implies kind of growth consistent and your customers look like you are generating a lot higher incremental customers from last quarter and into the fourth quarter. I guess my question is to get to your full-year guidance it looks like we've got to assume a almost a 2000 basis point deceleration from 40% year-over-year growth; roughly (inaudible) in the first quarter to like 20% in the fourth quarter. So I'm trying to understand why you are expecting that significant of a fall-off in revenue growth on a year-over-year basis and just how conservative do you think the guidance is? Thanks.

Thanks for your question, Bill. Again, based on the first quarter of growth this would extrapolate into growth in the mid to high 20s for the balance of the year. We are lapping in the last two quarters of '08 average growth from '07 of 39%. And so that is the primary reason why the balance of the year comes out being lower. We think that we are going to continue to be selling to our existing customer base in terms of up selling at approximately 30%, which is roughly what we did in '07, as well as continue to add 50 to 60 new customers a quarter. And so we are encouraged with the growth momentum that we have. So again, that is the guidance that we are giving, and we will see how the year transpires to see whether it is too conservative or not.

One quick follow-up just on a question earlier. The non-GAAP EPS guidance, can you just -- I didn't hear what your answer was to the tax rate, what the tax rate is in that guidance to get to --

It is roughly about 5%, and that is a combination of the Alt Min tax of 3% plus 35% tax rate on our Canadian earnings.

So it is a 5% tax rate? I guess what I'm trying to understand is, your EBITDA guidance is in line with my model and I think consensus, but the pro forma EPS is significantly below. And so I am trying to figure out the difference and I would have assumed that it was in the tax rate.

Again, I was responding to your non-GAAP EPS question, if it is to the GAAP EPS, then the blended rate is 38.6%.

No, the pro forma EPS that I was, I will take it off-line. Thanks.

(OPERATOR INSTRUCTIONS) Youssef Squali, Jefferies & Co.

Thank you very much. Is there a metric that you can point to to help us kind of gauge the success you had so far with the new products that you've launched so far in the year? As you said earlier, I think you said you launched 10 new products in 2007. Is there some -- I'm assuming the uptake or the increase the average product, for customer has increased. Can you just any kind of metric that kind of shows how successful those products -- and also maybe if you can point to the one or two products where you had the most success.

We don't give separate product revenue, but just to give everyone an indication that out of our total bookings in the fourth quarter the new products comprised about 10%, which we think is a very substantial amount. So we are seeing a very strong traction in the Campaign Metrixs, the continued maturation of the Video Metrix, Plan Metrix, comScore Marketer has gotten off to a terrific start. So just as examples.

What was the 10% in Q3? Do you have that number?

It was.

Probably a lot less because we didn't really have those -- most of those products started really getting to market in the second half and a lot of them really in the fourth quarter.

Okay, and then around the IPO time you were talking about how long-term EBITDA margin should over time make their way up to 30% and potentially even higher. Is that still your position, and how fast can we get there?

Absolutely. I believe that the way that we have positioned is our long-term target showed 30% adjusted EBITDA margin, and we were defining long-term as around 2010. And given the pace that we are at right now is that just purely on our organic business, that there is no reason that we can't get there. Again, with that said we are continuing to reinvest in our business in terms of expanding rapidly overseas and getting into new digital formats. So with that type of investment spend that might temper the adjusted EBITDA margin a bit. But looking purely at the organic business we are realizing significant leverage across all of our main cost categories. And we see no reason why that won't continue.

Lastly for me, does your EBITDA margin for '08 include the or account for the commercial presence in France and Germany that Magid talks about earlier?

Again, that is all in. So in terms of our expansion internationally, ramping up significantly our sales force where we had 81 quota carrying salespeople at the end of '07; and we are looking to probably increase that by approaching additional 30 in terms of building out our panel, in part to be able to support the move into mobile, things of that nature. And so all that is included within the 23 to 24% adjusted EBITDA margin for the full-year.

Let me just put in perspective sort of the impact of new products and new initiatives for you. When you take a product like comScore Marketer, we may generate a lot of booking and strong sales momentum, but given the way revenues are accrued, actually the expenses which are somewhat flat are going to take a while to be covered by the accrued revenue which gets spread over twelve months. Even though the sales momentum is strong. So we have a portion of our revenue, whether it is comScore Marketer or other new products or the entry into France and Germany or some of these -- and then our investment in aggressively building a sales force both here and internationally. All of these things really actually have a, not a great impact on margin, as you can expect. But as you finish the year in 2008 all of these initiatives will be maturing, and will start really contributing strongly to margin.

And again, just speaking to margins, we were really elated with the fourth quarter results in general. But that adjusted EBITDA margin of 26%, and so that again just underscores the power of our business model and the operating leverage. And so to be at a full-year projection of 24% with the type of investment spend that we have, that if we took out that investment spend one can pretty easily extrapolate that for the full-year we can be approaching over 25% in '08.

Okay, great. Thanks.

Heath Terry, Credit Suisse.

It's actually Tron Wang for Heath. Two quick questions, guys. Can you please tell us what you are seeing in terms of pricing when you are speaking with your customers when it comes to contract renewals? Any push backs from your customers?

No. We are still maintaining the same pricing practices that we've had before, no pushback on escalators.

And can you just remind us again what that is in terms of sealing your contracts versus multi-year?

We talk about single year contracts in the 10% to 11% range. The incentives for two-year contracts is to reduce the escalator to 5% to 6% and for three-year contracts to reduce the escalator to 3% to 4%. On a blended basis I would say we are achieving price increases in the 6% to 7% range. And we really don't see -- knock on wood -- any evidence of that slowing down.

And the last question is do you have any plans to expand your current panel size for the PC? And if you have any thoughts on the cost of that. Thanks.

Yes, we are -- we are in the process of acquiring substantial data volumes from various ISPs. And we have built those costs into our panel budget for this year. But at the same time, we are also -- we have a number of applications that would actually eventually support that cost; if not actually turning that data into a profit for us. So depending on a scenario, we may be increasing or (inaudible) making money, just directly from the sources we are getting the panels from, so the ISPs. And then obviously that would result in some of our services that we provide like campaign, reporting, advertising, tracking, etc. we will benefit from the increased granularity to be able to measure campaigns that don't quite have the reach that some of the larger campaigns have. So we think this will help us become more ubiquitous in advertising performance measurement in a sense that we will be able to measure a lot more campaign and -- they come in a variety of targets [charges] and a variety of [reach].

So again just to give everyone an indication it is based on these new panel initiatives that Magid said, plus mobile is that our panel costs for the full-year are increasing by over $1 million. And so again, this is an example of the type of investment spend that we have in the model still yielding the type of guidance that we are giving for the only year.

That is all the time we have for questions for today. I would like to turn the conference back over to the speakers for any additional or closing comments.

Well, we appreciate all the questions. Obviously for the analysts John and I will be happy to answer questions afterwards that may not have been answered on this conference call. But overall we are really pleased by how we closed '07. And we are really excited about '08. We have lots of opportunities to convert our investment in '07 and lots of new opportunities that we will be managing to realize in '08. So thank you very much, and look forward to talking to you soon.

That does conclude today's conference. We thank you all for joining us.