Comscore Inc (SCOR) 2018 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the comScore's Third Quarter 2018 Financial Results Call.

(Operator Instructions) As a reminder, this conference call may be recorded.

I would now like to turn this conference over to Hattie Young.

Please go ahead.

Thank you, George.

Good afternoon.

Thank you for joining us to discuss comScore's third quarter financial performance.

Joining me on today's call are comScore's CEO, Bryan Wiener; and CFO, Greg Fink.

Before we begin our prepared remarks, I'd like to remind all of you that the following discussion contains forward-looking statements within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements include comments about our plans, expectations and prospects and are based on our view as of today, November 8, 2018.

We disclaim any duty or obligation to update our forward-looking statements to reflect new information after today's call.

We'll be discussing non-GAAP measures during this call, for which we provided reconciliation in the appendices of today's press release and on our website.

Our actual results in future periods may differ materially from those currently expected because of a number of risks and uncertainties.

These risks and uncertainties include those outlined in our 10-K, 10-Q and other SEC filings, which you can find on our IR website or at sec.gov.

I will now turn the call over to Bryan Wiener.

Thank you, Hattie.

Hello, everyone.

Thank you for joining our Third Quarter Financial Results Call, my first full reported quarter as CEO.

I'm joined by Greg Fink, our CFO.

I'm really excited about the progress we've made over the last 5 months stabilizing the business and returning it to growth.

As we discussed last quarter, while the turnaround will not happen overnight, we believe we will be able to demonstrate progress in quarters, not years.

We believe today's report is a significant proof point that we're on the right track and poised for improved revenue growth with expanding adjusted EBITDA margins.

We've made progress in streamlining our cost structure as evidenced by our third straight quarter of positive adjusted EBITDA.

Our team is laser focused on moving with increased velocity each quarter in terms of product innovation, customer engagement, revenue growth, adjusted EBITDA and cash flow.

As we discussed last quarter, we believe our longer-term growth will be driven by increased adoption of our solutions as a trusted currency for planning, transacting and evaluating media across platforms.

The great news is that the market is moving rapidly in our direction.

Consumer behavior is leading media properties and buyers to accelerate their demand for cross-platform advertising packages across linear television, OTT and digital platforms.

And buyers and sellers alike are demanding products and solutions that can accurately predict and measure audience and advertising delivery across platforms.

We are particularly encouraged by the traction we are getting as a currency in premium video advertising and digital local television, national television, addressable television, and the OpenAP television network consortium all converge in a cross-platform environment.

We described our strategy to launch new products in our last earnings call.

I'm really excited to be able to go into far greater detail on our value proposition and progress at our Investor Day next week in New York.

At Investor Day, we will discuss the environment for our products, our product road map and the model for each of our major product categories.

We also plan to provide a multiyear financial outlook, including 2019 guidance that we believe will demonstrate our belief in our products, our business model and our excitement about the overall industry growth outlook.

At Investor Day, we will also introduce our expanded management team, including Sarah Hofstetter, our new President.

Her reputation precedes her, and she is already make an impact in her first 30 days at comScore overseeing our recent brand launch and helping re-architect our go-to-market strategy as we head into 2019.

For those who cannot attend in person, I invite you to join us by visiting ir.comScore.com.

So we have made a lot of progress over the last 5 months, and I'd like to touch on the near-term drivers of our growth.

The improvements we have seen and will continue to see, are driven by what I call the 3 Ps: positivity; productivity; and positioning.

First, positivity.

The marketplace is getting increasingly excited about comScore and that is starting to bear fruit, both in customer growth dialogues and in recruiting world-class talent.

In addition to high-impact senior hires made in the last 100 days, we're trending towards a 30% uptick in applicant interest in the second half of the year compared to the first.

We believe these are leading indicators for revenue and margin expansion, though they will take some time to appear in the financial results, given the average 6-months sales cycle for our products.

Second, productivity.

Our workforce is energized again after a really challenging few years.

We have reorganized, focused on motivating our existing talent and brought in new star talent while, at the same time, reducing cost.

Efficiency continues to improve, and we are seeing and accomplishing more today than we were a year ago.

And that is after streamlining our staff by more than 12%.

We still have a long way to go to maximize productivity, but as we do, we believe we will free up sufficient resources to invest in rapid product innovation and expanded focus on the buy side customers, while keeping our cost structure relatively flat.

Lastly, positioning.

We are starting to see increased share of wallet from existing customers and existing products through a combination of better listening, storytelling and bundling of products.

Of particular note, while our syndicated digital audience product continues to experience market-driven pressure, we are seeing early encouraging signs as we rolled out new pricing bundles at the end of Q3.

Moreover, last month, we launched a significant product release in the form of an enhanced interface for merging digital audience solutions within a single streamlined user interface.

This tool provides more insight to help publishers grow their audiences.

We're also evolving our digital audience products to better align with customers' increasingly mobile and multi-platform consumption behaviors.

Earlier this week, we announced a strategic partnership with Snap, in which we became the first ever third-party measurement of their Discover platform.

To quote a senior media executive in the Wall Street Journal's coverage of the news, "Platforms like Snapchat need stronger third-party measurement tools that show what audiences are watching."

In terms of future growth, we have said before that the key levers to become a currency for digital and TV content and advertising.

And we said, we would make demonstrable progress in Q3.

Here are some of the results so far.

First, we said we would launch our comScore Campaign Ratings product, CCR for short, in a single quarter product strength.

CCR launched on time on September 27.

We will go into more detail on CCR as well as our overall cross-platform progress and plans during Investor Day next week.

Second, we have built a dedicated team for driving comScore as a buying currency.

We're seeing real progress as TV buying moves beyond age and gender to advanced demographics of audiences, where we believe we have a competitive advantage.

During the quarter, we extended our multiyear television deal with GroupM.

And we are starting to see increased traction with other agencies around adoption of our products as a buying currency.

We are pleased with our progress but admittedly, this is a journey.

Sarah is heavily focused on revamping our go-to-market strategy for brands and agencies.

We believe this will not only help our revenue from these customers directly, but also will make us much more valuable to the television networks, thus increasing the dollar value of these contracts over time.

Lastly, we recently announced strategic relationships with Adobe and Oracle to grow our footprint for our unique set of TV and digital Activation products.

We expect Activation to be a growth engine for us, as marketing accountability grows in importance and especially as we gain more traction as a planning and transacting currency for video across platforms.

We will go into more detail on our offerings and strategy for Activation at Investor Day, but suffice it to say that we are very excited about our traction in this area.

I now want to turn it over to Greg to take you through our financial results, including a view into our new product pillars.

Greg?

Thanks, Bryan, and welcome, everyone.

Today, we reported Q3 revenue of $102.9 million, which compares to revenue of $100.3 million reported in the third quarter last year and $101.4 million in the second quarter of 2018.

In the third quarter, we began to analyze our customers and revenue by 3 primary areas of opportunity and growth: Ratings and Planning; Analytics and Optimization; and Movies Reporting and Analytics.

In our press release, and in our 10-Q to be filed later today, we've provided our current and prior period revenue on this basis as well as comparable information to our previous product categories.

Of particular note, our digital syndicated audience products are included in our Ratings and Planning category, while our custom digital products are included in Analytics and Optimization.

These 2 products used to be reported together in a single line item under digital audience.

We believe the new product categories better reflect our customer needs and where we are focused from a revenue perspective.

Revenue from Ratings and Planning in the third quarter was $70.5 million, up 1.5% from the same period last year and consistent with the second quarter of 2018 and includes our syndicated digital audience, TV and cross-platform products.

We saw sustained growth in our TV and cross-platform products from continued strength with our largest customers.

Additionally, revenue was higher as compared to the prior year quarter, as a result of certain contracts I discussed last quarter which are now recorded on a gross basis.

Increases in TV and cross-platform products were offset by expected declines in our digital audience products.

Our syndicated digital revenue represents 53% of Ratings and Planning for the quarter, as compared to 60% in the same period a year ago and 55% in the second quarter of 2018.

As Bryan described earlier, we are making changes to the product offering and the way we position our solutions that are positively impacting the business.

As a result, we expect the declines in revenue from the syndicated digital audience products that we've seen in recent quarters should begin to stabilize, with sequential quarterly declines in the low single digits.

Revenue from Analytics and Optimization in the third quarter was $22.2 million, up 4.9% from the third quarter of last year, and up 8.2% compared to the second quarter of 2018.

We continue to see solid growth in this product category.

Movies Reporting and Analytics revenue increased 5% from prior year levels to $10.2 million.

Moving on to our operating performance in the third quarter.

We reported a GAAP net loss for the third quarter of $24.6 million compared to a net loss of $130.1 million reported in the same period last year.

Q3 2017 includes the settlement of litigation as well as significantly higher audit and investigation costs.

We reported adjusted EBITDA for the third quarter of $5.2 million, which includes a $1.6 million payment received from a prior year patent settlement that was higher than payments received in prior periods.

This compares to an adjusted EBITDA loss of $5 million reported for the same period last year.

The $10.2 million improvement relates to our ongoing focus on cost reduction, much of which took effect earlier in the year.

We maintained discipline in sales and marketing, R&D and G&A.

Year-to-date, our adjusted EBITDA has improved more than $20 million over the same period in 2017.

Our non-GAAP net loss for the third quarter of 2018 was $11.9 million.

This compares to a non-GAAP net loss of $22.1 million reported in the year-ago quarter.

I will now discuss operating results for Q3 of 2018 and 2017 on a non-GAAP basis, excluding stock-based compensation and other major reconciling items, as identified in the tables accompanying our press release filed today and available on our Investor Relations website.

Gross profit for the quarter was $54.7 million or 53% of revenue.

This was slightly better than the year-ago quarter, reflecting relatively flat costs on increased revenue.

Gross margins in the third quarter of 2018 reflect a decrease in employee cost, depreciation and other operating costs offset by an increase in data costs.

Selling and marketing expense for the quarter decreased to $23 million or 22% of revenue compared to $28.4 million or 28% of revenue reported in the year-ago quarter.

R&D expense for the quarter was $17.6 million or 17% of revenue compared to $21 million or 21% of revenue in the year-ago quarter.

While we continued investing in new products such as the beta launch of CCR, the decrease in both categories was primarily related to lower headcount and other operating costs.

We also capitalized $2.2 million of quarter for internally developed software.

G&A expense for the quarter was $16.6 million or 16% of revenue, roughly flat when compared to the year-ago quarter.

A modest increase in G&A expense was driven by legal, audit and consulting professional fees as well as compliance cost.

We've reduced G&A cost by more than $2 million compared to the second quarter of 2018.

We continue to focus on improving the efficiency around our administrative and accounting processes and strengthening our internal controls.

On a sequential basis, overall operating costs were relatively flat.

We are confident in our ability to control operating costs, and will be providing more detail on the future outlook during Investor Day next week.

We continue to focus on reducing our headcount costs, which, excluding stock-based compensation, were $50.3 million in the quarter or 49% of revenue.

This was unchanged from the second quarter, but significantly lower compared to $57.6 million or 57% of revenue in the year-ago period.

A portion of this decrease is the result of capitalized costs for internally developed software.

And, as Bryan mentioned, our current headcount is 12% lower than a year ago.

I previously mentioned that we would incur costs associated with restructuring some of our facilities and leased properties.

These negotiations are ongoing, and we expect the majority of our restructuring activities to be completed in the fourth quarter, which should reduce our operating expenses and cash requirements next year.

We closed the quarter with cash, cash equivalents and restricted cash of $54.2 million, an increase of $9.1 million over year-end and an increase of $1 million compared to the end of second quarter.

In the third quarter, our cash position improved due in part to a $10 million payment from the settlement of a legal matter and a patent payment as well as a decrease in our cash needs for operations and a reduction in our nonoperating expenses.

Investigation in prior year audit costs as well as restructuring expenses were less than $1 million in total in the quarter compared to $33 million and $9 million in the first and second quarters of 2018.

We continue to closely mange our capital requirements and intend to move the company towards positive cash flow as quickly as we can.

We believe that our options and cause for raising capital are improving every quarter.

We plan to give more guidance on our strategy for managing our balance sheet next week at Investor Day.

As of December -- as of September 30, our weighted average share count for EPS calculation purposes was approximately 58 million shares.

During the quarter, we issued just under 1 million shares associated with RSU and option settlement.

Many of the challenges and costs that we had earlier in the year are now behind us.

And as we look forward, we are determined to build a culture around cost discipline and efficiency, while redeploying resources to focus on innovation and product development to generate incremental revenue without the need to increase costs.

In the fourth quarter of 2018, we expect revenue to be slightly higher as we start to see traction from our efforts to date.

We also expect costs to be slightly higher due, in part, to larger sales commissions expense.

As such, we expect adjusted EBITDA to be positive for the fourth straight quarter and at the low end of the range of the first 3 quarters of 2018, excluding the $1.6 million patent payment we received in Q3.

As Bryan mentioned, we plan to provide our 2019 and longer-term outlook at next week's Investor Day.

With that, I'll turn the call back to Bryan.

Thank you, Greg.

In conclusion and consistent with what we have stated previously, we believe 2018 will serve as a base for accelerated growth starting the second half of 2019 as we launch new products and execute on our revised go-to-market strategies, centered on becoming a leading currency for video advertising across platforms.

We have a large addressable market within which we are the clear #2 but have a lot room to capture additional market share.

This quarter demonstrates that we have made significant progress on reducing our cost structure.

We believe there is ample opportunity to continue taking out costs in 2019 while accelerating innovation with new product launches as we integrate and further automate our technology platform.

On the revenue front, we believe we're going to see steady progress as our traction in the market and revised go-to-market strategy start to bear fruit with our 2-quarter sales cycle.

We understand that it is important to offer investors transparency and granularity into our turnaround road map, which is why we are excited to take you through our strategic plans, operating model and multiyear financial outlook in greater detail at Investor Day next week.

The details for that event can be found at ir.comscore.com.

Thank you.

Now we will open up the call for questions.

Operator, please go ahead.

(Operator Instructions) And our first question comes from the line of Tim McHugh with William Blair.

Just want to first ask about the comment about the new pricing bundles for the digital products.

I guess, can you elaborate a little bit more on that?

And I guess, any particular response that you're seeing from customers?

Sure, Tim.

Well, first off, let me say, it's early, it's early days.

We launched these new bundles in end of Q3.

But effectively, we had pricing around micro SKUs within our digital audience product.

And our -- what we've done is we have reoriented around bundles and pricing for a customer, and so we're focusing instead of on average selling price for -- per products SKU, it's average selling price per customer.

And so that's freed up our commercial teams to be able to construct bundles that actually satisfy the customers' needs and still generate incremental revenue with us.

And we think, we're optimistic, that it's going to help us with our retention rate.

In the past, what would happen is, when you started to add up all the different features sets, the price often became not affordable versus what we can now do with our new bundles, and I think the important thing for investors to understand is our marginal cost for providing these incremental features is close to 0. So we're optimistic.

We've gotten good market reactions so far.

But again, it's early days.

Okay.

And can I ask on the $1.6 million fee?

I guess, does that show up in revenue?

Is it a contra against expenses?

And if it was in revenue, I guess, where in revenue would that show up?

It's included in other income.

Okay, all right.

I guess -- and then just the last comment, I guess, when I think about the comment about sequential declines you make in the digital solution, I guess, one, that was only the syndicated products if I'm correct, not the entirety of that segment.

And then secondly, I guess, is that just not counting the new pricing plans have much of an impact?

Or how do I reconcile that against, I guess, admittedly early but you said, you see more positive signs, I guess, in that business?

Yes.

So the first question is yes, the custom solutions for digital now sit in the Analytics and Optimization product category.

And the reason we've done that is the Ratings and Planning, if you think about that business model, it's very -- largely based on subscriptions with annual or multiyear contracts, where Analytics and Optimization tend to be shorter-term agreements, and so that's why we split it up that way.

In terms of kind of what we're seeing, so we're optimistic when we look at this, and we start to think that in digital, the year-over-year is a harder way to look at this, because we're implementing these programs and there's not a ton of seasonality in the business.

So really, we're kind of looking at this as Q2 being the new base and how do we stabilize off of that.

And so we look at it sequentially, it's about 2% decline.

And that's really without the benefit of much of the sort of new pricing bundles.

And also, the other thing that I mentioned in my prepared remarks was around we have a new UI that we launched in October, user interface, that we think it makes -- add value to the user base as well as things like the Snap partnership.

And so it's a combination of pricing bundles, ease of use and more product innovation that we're cautiously optimistic that we can change the trend line from where it's been.

And our next question comes from the line of Laura Martin with Needham & Co.

Could we talk about that -- so it sounds like you lowered the staff by 12%, and I'm just wondering what inning would you say that's in?

In terms of the cost cutting, how much further can we go with headcount reductions?

Well, Laura, I don't think we want to give you a specific target.

I think the way we're -- we've really outlined this, and we'll go into far more detail on Investor Day, is we think that we're about halfway through our technology transformation and that is going to open up a lot of resources to be able to reinvest into product innovation and into expanding our commercial strategy without increasing our cost base.

And so I think the way we look at this is, we see our efficiency efforts principally creating operating leverage where we're going to be able to increase our revenue while keeping our costs relatively flat.

And these are the things that will -- we will talk about our strategies as well as the economic impact of that next week, next Tuesday, and give more detail.

But I think in general, it's less about taking our cost structure down in absolute terms and it's more about being able to redeploy resources in areas that we think are going to drive increased customer satisfaction and increase revenue growth while keeping our costs relatively flat, which obviously, will drive incremental EBITDA margin and incremental cash flow.

Okay, great.

So one of the things you said in your prepared remarks, Bryan, was that you sort of view that success was going to be measured by increased adoption of your products.

But later on in your prepared remarks, you said that it's sort of a 6-month selling cycle.

So my guess -- my question is, have you guys thought about what metrics you want to give us in that 6-month period?

Are you going to actually give us adoption numbers until we start seeing in the financials so we can keep track of how you're doing with adoption?

Well, I think what I'm -- what I said was that you would see progress in quarters and not years.

And that I think you'll be able to see that in each successive quarter.

We have -- our business model is not predicated on getting lots of new customers.

Our growth is coming principally from existing customers and so you're going to see that each and every quarter in our revenue numbers.

I think you're starting to see it now.

Granted, it's early days, but I think each quarter when we're sitting here in 3 months, we believe we will be able to have demonstrable progress each and every quarter and you'll see that in our revenue numbers.

So the metric you want to see is revenue growth, that what you're saying?

Okay.

Yes.

And then my last thing is, there was a lot of press with this Snap deal you did, which looked really cool.

Could you talk about the deal you did with like 11 different measurement companies and turning -- like with Roku and all those guys?

Is that, like, additive to your economics?

I notice you didn't mention that one but you did mention Snap.

How is that one, which looked like a bigger deal, different for comScore?

Well, it's important for us to be included as a measurement provider for any platform.

I think the differences in the Snap deal is it's the first ever, and we're the -- that's been a third-party measurement in measuring Discover.

And so I think they're different arrangements.

I think ultimately, you should think about those as not -- they're not specific revenue deals as they're driving increased adoption of comScore as a currency, which creates the -- which increases our value proposition to both buyers and sellers.

And so we're going to continue to look for distribution in particular, on our premium video products, both on the currency side and on the planning.

And so I think you -- it's safe to say that we're putting a lot of time and attention not only in the product development but also in the distribution in those areas.

(Operator Instructions) And our next question comes from the line of Alan Gould with Loop Capital.

Bryan, going back to the Snap deal again.

The interesting thing to me is that a lot of these new media companies feel that they don't need independent third-party measurement, that they're -- that they've got better data.

What do you think it was that got Snap to join with an independent third party?

What are the prospects of going beyond Snap to Facebook and other digital companies and providing independent measurement?

Sure.

I don't think I want to comment on what the motivations were for Snap.

I think that's probably best for them to comment on and similarly, for Google and Facebook.

I think it's pretty clear, whereas a couple of years ago, there could be some debate on well, whether or not third-party measurement is necessary and I think you made the comment that the data might be better if it's being provided directly from the media platform.

That may or may not be true.

But in order to be a currency, you have to be trusted on both sides of the equation.

And I think conventional wisdom is right now is that it's a requirement to do business at scale.

In the advertising or media space to have a third party that is counting audiences and verifying efficiency and verifying effectiveness.

Okay.

Then I've got a follow-up with Greg on -- I'm sorry.

No, go ahead, Alan.

Yes, if I could follow-up with Greg on a quick one.

Greg, what was the impact of the ASC 606 in the quarter on revenue?

It's very minor.

It's probably a couple hundred thousand.

It will be disclosed in our 10-Q, Alan.

But after we had first quarter, given how small it is, we haven't really put that into our talking points here, but it will be disclosed in the 10-Q.

(Operator Instructions) Our next question comes from Surinder Thind with Jefferies.

Bryan, I was just hoping to kind of touch base on the big picture growth opportunity, at least the way that you guys are thinking about it.

In one of the comments, you talked about the majority of the growth coming from existing clients at this point.

Is that the primary way we should be thinking about it?

Or how should we be thinking about the opportunity for maybe you to bring on new clients at this point?

Or how you kind of think about the balance between the 2?

Well, thank you for the question.

And I think kind of to repeat, I think you should be thinking about it primarily as share of wallet from existing customers.

When you think about who our customer -- our largest customers are, they're extraordinarily large media companies, both traditional and newer digital players.

But when you think about our share of wallet in terms of currency, it's fairly small.

And so when you look at other -- basically, our largest competitor in the space, we are taking a small fraction of that.

And so we see and our clients, I think, see tremendous room for growth there.

And we believe executing our strategy to be that trusted currency for planning, transacting and evaluating media across platforms is going to open up a lot of different revenue streams.

And you're going to see that not only in our Ratings and Planning group, which will be driven primarily from our TV and cross-platform growth, but I think you'll see it in continued nice growth from -- in our Analytics and Optimization business.

Understood.

And then how should we -- I'm sorry.

And as I said, we're going to be giving you guys more guidance into how we think that growth trajectory looks like not only for 2019 but multiyear on Tuesday.

Understood.

And then in terms of just maybe the pricing part of the equation and just kind of any color that you can provide on the debate or the pressure that the clients are seeing and the ability to drive that down versus, obviously, you guys providing an enhanced portfolio of services and the ability to keep pushing pricing in the other direction?

Or any color on the tug-of-war there?

Can you elaborate on the tug-of-war?

Are you saying the pricing pressure on our services or on the services of the media companies?

Well, in term -- on your services.

Right.

In terms of...

Listen, it's a very competitive world, so I don't want to imply that -- anything but that.

I think everybody, the economy is incredibly competitive and when our customers are under pressure, they're going to look for cost savings everywhere they can.

That being said, I wouldn't list pricing pressure as one of our biggest threats right now or concerns.

I think it's more about our partners and customers, and I said this when I joined the company, are eager and are cheering for us to be successful and introduce new products into the market because what they pay us is a fraction of the value that we can bring to them if we're successful in measuring media across platforms, which will allow them to do more business, more efficiently.

And on the buy side, the hope is that they will be able to connect with their audiences more efficiently, which is going to drive their top line growth.

So we're really seen as an enabler of growth of our customers, which is why they care about our prospects.

And that's what -- one of the main reasons why I joined the company, because I think it's a really unique circumstance where if we're successful, we're going to make our customers successful.

So while, of course, they would love to pay us less, I don't think that's their primary concern; it's about how can we help them grow their business.

Understood.

So maybe I can ask the pricing question maybe a slightly different way.

In terms of growing the wallet share component, how much can you leverage pricing?

Or how does that enter the equation versus the value of the services that you guys are offering?

I think you should think about it as we need to increase our volume of activity with our customers.

It's not -- we are not going -- our revenue growth is not primarily -- not only going to come from increasing the price per se per unit of our services; it's going to come from getting greater share of activity.

And so presumably, they're paying somebody else for that activity now.

And as the marketplace grows and evolves, there are opportunities not only to take share, but also to create new solutions that bring new value just as there always is in disruptive markets.

But you shouldn't think about it that we're going to be charging more for the exact same service that we're providing them.

There's 2 aspects to it.

There's price and there's quantity, and we're looking primarily to drive up quantity with activity.

So I apologize if my question was not clear.

But, I guess, my question was how much can you use pricing to drive up quantity?

Meaning, there's a trade-off right?

So obviously, the more that you lower pricing, the easier it is to gain wallet share and then that was kind of the tug-of-war that I was talking about.

Yes.

So I'm sorry, I didn't get it first time.

First of all, I don't believe that actually is true.

I don't think price is the main driver of us getting quantity.

It's more about can we establish that we are -- could be that trusted currency among other product suites that we have.

But it's primarily can we become that trusted currency and if so, that will increase quantity.

Price is not the driving factor for our customers right now in how much they use us.

And this concludes today's question-and-answer session.

Ladies and gentlemen, thank you for participating on today's conference.

This does conclude today's program, and you may all disconnect.

Everyone, have a great day.