威瑞信 (VRSN) 2010 Q1 法說會逐字稿

Good day and welcome to the VeriSign Inc. first quarter 2010 earnings call. As a reminder, today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Nancy Fazioli. Please go ahead, ma'am.

Thank you, operator. Good afternoon, everyone and thank you for joining us for VeriSign's first quarter 2010 earnings conference call. I'm Nancy Fazioli, Director of Investor Relations, and I am here today with Mark McLaughlin, President and CEO, and Brian Robins, Executive Vice President and CFO. Please note that this call and the accompanying slide presentation are being webcast from our Investor Relations website located at Investor.VeriSign.com. Please refer to our website for important information, including the Q1 2010 earnings press release. A replay of this call will be available on our website within a few hours. Today's slide presentation will also be available for download after the call.

Financial results in today's press release are unaudited, and the matters that we will be discussing today include forward-looking statements, and as such are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically, the most recent reports on Forms 10-K and 10-Q, and any applicable amendments which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements. I would like to remind you that in light of regulation FD, VeriSign retains it's long-standing policy to not comment on financial guidance during a quarter, unless it is done through a public disclosure.

The financial results in today's press release and the matters we'll be discussing today, include non-GAAP measures used by VeriSign. GAAP to non-GAAP reconciliation information is appended to our press release and slide presentation, both of which can be found on our Investor Relations website. Please note that we have included a table in the statement of operations in the press release, with the classification of stock-based compensation. In a moment, Mark and Brian will provide some prepared remarks, and afterwards we will open up the call for your questions. Unauthorized recording of this conference call is not permitted. With that, I would like to turn this call over to Mark. Mark?

Thanks, Nancy. Good afternoon, everyone. Q1 was a good quarter for us and a good way to start the year. In both Naming and Authentication Services, we are seeing improvements in the business, driven by the rebounding economy, as well as programs and efforts we have implemented to improve the businesses. As we've indicated in the past, we believe that online advertising spend and e-commerce spend are correlated to our business results on a lagging basis. Both of these areas are healthy, sequential improvement in the first quarter. On the Naming side of the business in the first quarter, this helped us to achieve record new registrations, as well as an improving renewal rate. And on the Authentication side of business, we saw continued strength in bookings.

Before getting into the business unit results, I'll touch on some highlights from the quarter. Revenue from our core businesses in the first quarter was $263 million, which represented a 4% year-over-year increase. Non-GAAP earnings per share was $0.37, which is a 16% increase year-over-year. Non-GAAP operating margin was 39.8%. In the quarter, we repurchased approximately 2.1 million shares for about $50 million under our repurchase program.. And on the cash side, we generated cash from operations of $101 million.

On the operations side, we continue to deliver 100% availability on our infrastructure. To help ensure that we maintain this level of performance, we announced a new initiative in the first quarter called Project Apollo. This project is designed to increase our infrastructure capacity to over 1000 times today's level of four trillion queries, so that we can manage up to four quadrillion queries per day by 2020. Over the next decade, we believe that this investment will dramatically strengthen the scale of the infrastructure, and will enable us to maintain our operational excellence.

In moving to the business unit results for the quarter, I will start with Naming. The base of registered names in .com and .net this quarter, totaled 99.3 million names at the end of March, a 7% increase year-over-year. 2.5 million net names were added to the domain base this quarter, which compares to 2 million net names added in the same quarter last year. During the quarter, we processed a record 8.1 million new registrations. This is an 11% increase, quarter-over-quarter and year-over-year. The 2009 fourth quarter renewal rate was 71.2%, up from approximately 70.5% in the third quarter of 2009.

While renewal rates are not fully measurable until 45 days at the end of the quarter, we believe that the renewal rate for the first quarter of 2010 will be approximately 72%. New registration and renewal growth in the quarter was driven by increasing confidence in the economy, continued strong international growth, and registrar marketing programs. We expect that the Q2 net names added to the domain name base will be between 2 million and 2.3 million names, considering historical seasonality. And as a reminder the price for .com and .net new and renewing names will increase to $7.34 and $4.65, respectively on July 1st this year. And to close out Naming, we have no update regarding the status of the case filed against VeriSign by the Coalition for ICANN Transparency, or CFIT. As previously indicated, the petition for rehearing is still pending, and the court is not obligated to respond in any prescribed time frame.

Now moving on to Authentication Services. In Business Authentication, we saw the installed base of SSL certificates increase to 1.25 million certificates in the first quarter, compared to approximately 1.22 million last quarter, and approximately 1.15 million certificates in the first quarter of 2009. This represents a 9% year-over-year growth in the base. As I've mentioned in the past, the main metric for this business is revenue growth. Given that revenues are primarily deferred and recognized over a future period, bookings is a good leading indicator of future revenue direction. From a bookings perspective, we had a second consecutive healthy bookings quarter, where SSL bookings exceeded our plan. Also while two quarters do not make a trend, we had the second consecutive quarter in which SSL bookings were higher than revenue.

The annualized average unit revenue, or AUR for the installed base of VeriSign, Geo Trust and thought-branded certificates for the first quarter was $222, which compares to $228 for the prior quarter. There are a couple of AUR related points worth mentioning. First, the AUR for the VeriSign branded certificates was flat quarter-over-quarter, following a decline for the past six quarters. We believe this is due to increased discipline on discounting policies and the improving economy. Second, unit volume growth in the low end continues to outpace unit growth in the VeriSign branded certificates. Given these points, we believe that product mix shift continues to be the major factor in the AUR decline, and we would expect that to be the case for the remainder of 2010.

Also in the first quarter in the Authentication business, we launched the VeriSign Trust Seal, as planned in late February before the RSA conference. This is our first step in our efforts to increase our wallet share, and to expand our addressable market in Trust services beyond exclusively transaction-oriented sites. The initial rollout was through a small direct sales team and through indirect mail efforts. We have additional roll outs planned to our sales partners and affiliates in May, and then we'll roll the product out to our existing VeriSign SSL customer base in July. It's still early, but the initial reception has been promising. And to close out Authentication service business, I also wanted to mention that in early April, we acquired certain assets from TrustBearer Labs. This small acquisition follows a year long partnership that allowed us to fully appreciate the PKI expertise of their team of engineers. The company's unique technology will further enhance our solutions, particularly in the public sector.

And now before I turned it over to Brian, I wanted to introduce two new members of my executive team. First, Atri Chatterjee, joined VeriSign in the first quarter as Senior Vice President of User Authentication, which includes our VeriSign Identity Protection and PKI businesses. Atri brings over 20 years of experience in net software, security, and cloud-based computing from organizations including McAfee, Secure, (inaudible) and Netscape. Also, Ben Petro recently joined VeriSign as the Senior Vice President of VeriSign Internet Defense Services, which encompasses iDefense, and our DDoS mitigation service. Ben knows our space well, having successfully built the UltraDNS, a DNS solutions provider in to a growth business which was acquired by Neustar in 2006. We're pleased to welcome both of them to the team. Brian, I'll now turn the call over to you.

Thanks, Mark, and thanks everyone for joining us this afternoon. The Q1 operational and financial results demonstrate that we're making good progress towards our 2010 goals. You will recall that we highlighted in our Analyst Day the following key financial metrics, revenue, deferred revenue, non-GAAP operating margin, non-GAAP EPS growth, and free cash flow. We're pleased with our Q1 performance in all of these areas. Starting with revenue for our core business, revenue was $263 million, up 1% from the prior quarter and up 4% year-over-year. Naming Services revenue was up 2% sequentially, and up 9% year-over-year. And Authentication Services revenue was down 1% sequentially, and down 2% year-over-year. The sequential decline in Authentication Services was related to user authentication, as well as VeriSign Japan.

Deferred revenue from continuing operations was strong. In 1Q, we ended the quarter at $924 million, up $36 million or 4% from Q4, and up 6% from the same period in 2009. The strength is related primarily to growth in new domain names in Naming Services. The subscription-based deferred revenue is a key strength of our business model. Non-GAAP operating expenses were approximately $159 million, down 4% quarter-over-quarter, due primarily to the $4 million out of period depreciation adjustment that was discussed in Q4, as well as managing Q1 expenses ahead of revenue visibility.

Non-GAAP operating expenses were flat year-over-year. Our GAAP operating margin for the quarter was 33.6%. Non-GAAP operating margin was 39.8% in the first quarter, compared to 36.8% in Q4. Non-GAAP net income for the first quarter was $69 million, resulting in non-GAAP earnings per share of $0.37, compared to $0.31 in Q4, and $0.32 in the same period in 2009. Contributing to a strong earnings growth was the following, continued execution on expense management, less than expected other loss net due to a gain from the contingent interest derivative related to convertible debentures, higher transition services revenue in Q1, and improved interest income. And finally, 2.1 million additional shares repurchased during the quarter, resulting in a diluted share count of 184 million shares, and net reduction of 8.5 million shares from 1Q 2009.

Operating cash flow was approximately $101 million in Q1, which includes a payment of accrued employee bonuses of approximately $36 million. Free cash flow was $89 million in Q1, given $8 million in excess tax benefits, and $20 million in capital expenditures in the quarter. Our balance sheet is strong, with ending cash, cash equivalents, marketable securities, and restricted cash of approximately $1.6 billion, an increase of $73 million after share repurchases of $50 million. We ended the quarter with approximately $460 million in marketable securities, moving from a government money market lifeboat strategy with our cash, to a prudent investment strategy that we hope to improve our yield. We invested in investment grade securities, with an emphasis first on capital preservation liquidity, and second on yield. We have $647 million authorized for share repurchases, and as we indicated previously, approximately 60% of cash, cash equivalents, and marketable securities is held domestically.

Moving on to guidance. As we indicated last quarter, we no longer provide quarterly guidance. However, we will update you on our progress toward annual guidance each quarter. At this point, we believe that we are making good progress to achieve or exceed the targets we provided at Analysts Day and reiterated on the 4Q call. Core revenue growth for 2010, will be in the range of 5% to 7%, up from 4% to 7%. In light of the sequential improvement that we saw in Q4, we now expect to exit Q4 2010 with non-GAAP operating margin in the range of 39.5% to 40%, up from 39.0% to 39.5%.

Non-GAAP other loss net is expected to be approximately $32 million for 2010. Our guidance is based on continued growth, disciplined execution and increased operating efficiencies. In closing, 1Q provides a strong foundation from which we can continue to focus on growing the business. During the quarter, we improved company-wide performance and profitability, while continuing to investment in our people, our technology, and our brand. Our operational excellence and unique capabilities, coupled with our financial strength, will move the business forward by relying on experience and strengths. We'd now like to open the call for questions. Operator?

(Operator Instructions).

And we'll take our first question from Sarah Friar with Goldman Sachs.

Thank you very much for taking my question. Two questions for you. Just given the turn that it appears you're starting to see, why not lift the revenue guidance on the top line? And then, could you address the competition in the SSL certificate business too? Are you starting to see entry from the more B2B oriented companies?

Hi, Sara, this is Mark. I'll be happy to address both of those. On the top line side, we obviously saw more achievement in the first quarter than we had predicted. So from a revenue standpoint of the guidance we had give of 4% to 7%, we're tightening that range to 5% to 7%. And we'll see how the rest of the year goes. And it's deferred, so it bleeds out over time as we overachieve. And on the SSL competition side, the true answer is no, we haven't seen any increased competition from what we see today, which is almost primarily all at the low end.

Okay. So all the pricing -- it's done 100%-- kind of just the mix shift then

At this point, what we saw on the AUR, as I mentioned on the VeriSign branded certificates, the ARU there was flat quarter-over-quarter. There's been a six quarter decline on the ASP at VeriSign, so it flattened out this quarter, which is good news. And we think is due to a lot of the discipline, we put in place around discounting, and just the sentiment in the market. So I think that if you remember from Analysts Day, I discussed the discounting and I discussed the mix shift. So I think that means primarily what we'd see from an AUR standpoint, going forward would be on a mix shift basis.

Great. Thanks very much.

We'll take our next question from Shaul Eyal with Oppenheimer.

Got it. I might have kind of missed some of the initial part of the presentation. But back to kind of the AUR, assuming that we focus on just the VeriSign branded one, what do you think those could come in the next quarter? Are they still likely to be flat?

Well, Shaul, this is Mark, I would say that we're working obviously to increase them. I think it's a good indicator that they flattened out quarter-over-quarter. Actually, it was up a very little bit. So we're calling it flat here. But as we can continue to reduce discounting, and I think we can hold the line on pricing, it's possible that could increase.

All right. Thank you. Good luck.

Thank you.

We'll take our next question from Todd Raker with Deutsche Bank.

Hey, guys, I apologize, I missed some of the call. Two questions for you. First of all, $50 million in stock buyback, especially giving the turn in the economy, why not ramp up stock buyback a little bit more aggressively? And then secondly, as I think about the price increase starting to roll into the base, what's the average contract length on the domain name side? And why won't we see a little bit more of an uptick on operating margins, especially given the out performance we saw this quarter as the price increase starts to roll into the base? Thanks.

Hey, Todd, this is Brian. I'll take the buyback question. As we spoke on prior calls, our position of buy-backs haven't changed. We still have $650 million of authorized shares repurchases. We will continue to buy back the creep. And be in the market on a as-needed basis, and look at ways to return value to shareholders. So I can't really comment any more on buybacks.

And Todd, it's Mark. So on the ATL side, we're pretty consistent at a 1.17, so that hasn't changed in a while. And on the question on the margin side, obviously, margins will flow down -- from the increase on the base. And we'll see that again. It's deferred. It takes time for that all to hit. That's one of the reasons we're saying we're at 39.5% to 40% on the exit margin. Previously we said 39% to 39.5%.

Alright, thanks, guys.

We'll go next to Katherine Egbert with Jefferies.

Hi, good afternoon. I have a question on the margins, and I apologize if someone already asked about this. I mean you had pretty nice increase this quarter. Where can those continue to go?

Hey, Kathryn, this is Brian. As Mark just answered in the previous question, that Todd asked, we've increased guidance from 39.5% to 40% on operating margin on an exit basis. And as we went into the first quarter of this year, we intentionally wanted to see the revenue visibility within the quarter, and held back expenses. We expect in Q2 we'll be between 39% and 40%.

Okay, thank you. Sorry about that. I'm juggling four calls here. And then one other quick one. Are there any more costs in the model from the divestitures? Is there anything left?

There really is not, most everything is out. We're sort of at the base employee count. We ended the quarter with approximately 2200 employees. And there's a little tweaking in here and there, and it's just optimization of the divestitures being completed. And redesigning some of our internal infrastructure and systems, and there's no material costs left to be taken out.

Okay, thanks, Brian.

We'll go next to Phil Winslow with Credit Suisse.

Hi, guys. Great quarter. Just got a question back on the domain name side. If you look at gross ads, actually, saw acceleration here and even during the economic downturn, gross ads were relatively flat, it was your renewal rate that declined. Now that gross ads seem to be accelerating, and the churn rate seems to be coming down here as well, what do you think that sort of translates into possibly for sort of a growth rate when you look out sort of this year, and next on domain names? Also, do you kind of expect to see similar acceleration in gross ads for the rest of this year? Thanks.

Hey, Phil. Let me take that in reverse. As far as the rest of the year, we have seasonality in the business as I mentioned. So we talked about 2 to 2.3 million names in the next quarter. And if you look back historically last few years, on the percentage decline quarter-over-quarter from the first quarter to second quarter on seasonality, that would actually be stronger performance than we've seen historically, even taking the seasonality. So we think, based on what we saw in the first quarter, and we could have better performance into the second quarter. If not throughout the rest of the year. So it looks like it's going down obviously. But that's just seasonality. I'd compare it to previous years and it looks pretty strong. I'm sorry, you had the first part of the question, which I forgot. Could you repeat that?

And then when you think about the where you think the renewal rate can trend towards. Obviously, we're bottoming -- we're bottomed out here. Where do you see that trending?

In the past we saw normalized renewal rates in the 70%, 71%, 72%. Obviously, based on what we saw in the fourth quarter now, the first quarter, and expectations as you go forward, I'd say that is maybe closer to 71% to 72% as opposed to 70%, 71%. And like I said if you go back historically and look at things, taking out the whole PPC period, those rates are fairly normal.

Great. Thanks, guys.

(Operator Instructions). We'll go next to Sterling Auty with JPMorgan.

Hi, guys.

Hey, Sterling.

So in terms of the new additions on the Naming front, where do you think the biggest sources are? In other words, with the economy picking up, is it starting to be new business creation? Is it advertising? What do you think the sources on the new names being as the base are?

I think it's a mix of a few things, Sterling. So the overage in the quarter from what our expectations were really driven both by an increased renewal rate, as well as new registrations. So if I break those two things apart for a second, and say on the renewal side, we know the registrars have been working hard over the last year to increase the renewal rates, just because it's easy to keep business than to find new business, is less expensive. And that appears to be the working out for them. Plus I think that people are more confident about the go forward on the economy. And that always translates well for us.

And on the new side, like I said, the first quarter, there's a lot of marketing that's done. That's generally when people really jet it up for the rest of the year. And that was more successful this year than in previous years, probably because people are feeling more confident. And internationally, we keep seeing really nice international growth as well. So I don't think the factors have changed about what would drive the business forward, or just coming through stronger in a better economy.

I caught your comments on the SSL side, about the AUR being flat in the VeriSign brand in kind of the mix. But what I missed a little bit because we're all juggling multiple calls -- what do you think the overall AUR would be in the June quarter, if you made a comment for that?

I didn't on that, so I would say the, if I kind of look back a couple quarters, and say what's the rate of decline or the declination rate for the AUR. It's been pretty consistent over the last two or three quarters. Last quarter actually slowed down a little bit. This quarter is consistent with the quarter before that. So I would say, we could probably expect that the next couple of quarters would be the same, or slightly better or a little slower rate of decline, before it would start to turn the other direction. And I think again, that's got a lot to do with just the way the money flows on a deferred model.

Got you. And is there any update on the global TLD, the new initiatives? I know it's more for 2011, but in terms of process, is there any more color in terms of the ones that maybe you identified that you want to go after, process, et cetera?

No. There are some TLDs that we would pursue. We haven't ever said what those would be, for obvious reasons, because we don't want to tip our hands out there. So none of that has changed in the sense that we know which ones we like. We know which ones we would go after. From a process standpoint, there's really been no changes on a process standpoint that, any of that is coming down the pike sooner than 2011, so as far as it being done and implemented.

And I lied, Brian. Last question would go to you. The comment that you made -- I think it was to Catherine. In terms of the exit rate on the margins, was the 39% to 40% I think for the year. But did you make a comment to the operating margin for June?

I did say second quarter would be 39% to 40%.

Alright, perfect. Thanks, guys.

Thank you.

We'll go next to Rob Owens with Pacific Crest.

Great, thank you very much. Looking at your core Naming revenue, and the sequential increase, kind of a nit picky question but most of my questions have been answered at this point. The sequential increase wasn't as fast as the total name base. And I know there are other registry services that you guys have in there. Why are aren't those growing as fast? What is going on with .tv and some of the other things. And I realize that they're modest to revenue, but they don't seem to be pacing in terms of growth.

Hey, Rob.This is Brian. The nature of the deferred model, the units are going to grow, the pickup in the units are going to grow a little bit quicker than the deferred revenue. You saw the increase in deferred revenue that will eventually flow into revenue. There was sort of a mismatch this quarter, and you'll see those come more in line over the next couple quarters. As it relates to .tv, and some of the other ccTLD's those picked up as well, with the overall market. And we were pleased with our progress as well.

So more deferred in nature. And given the increase in long term deferred, was there extension in name duration during the quarter? You guys still running about five quarters?

We are still looking at 1.17 average term life, so that still has been pretty consistent over the last couple three quarters.

Great, thanks.

Thanks, Rob.

We'll go next to Steve Ashley with Robert W. Baird.

Hi, great. I actually just hopped on the call late here, so I apologize if this is redundant. I was going to ask about the Trust Seal. And who are you selling that to? Have your sales reps seen quotas adjusted for that or anything? And is there any prospect for bringing channel leverage to that business?

Sure, hey, Steve, this is Mark. On the who do we sell to, the plan is at least two groups of folks, the first one we're after is a broad broad market we've never addressed before, which would be sites that do not require SSL certificates. So they are non-transactional sites in nature. There's 10 times more sites in that category to sell to, than would be in the e-commerce, SSL total addressable market. That's where we started, and that's where we are right now. We will increase into our existing SSL base in the July time frame, when we take that into our core customer base.

From the sales perspective, we're doing two things. The first is, we are -- we've hired some salespeople just to sell this, so that we're going to get trained the trainers sort of aspect -- and people who are specialized on this. And we're training our existing SSL sales force so that they can sell into the existing SSL base come the July time frame. And also in the May and June time frame, we'll be rolling this out for the first time. It's not going through our channel yet, but we are taking this through our channel partners as well. So you will see us over the course of the next four to six months, to have this fully in the market from a sales and channel perspective.

Perfect. Thank you.

Thank you.

We'll go next to Walter Pritchard with Citi.

Hi, Mark, Brian. I'm wondering if you could just help us understand on the renewal rate side. It looked like you saw an improvement in the quarter. And I am wondering, as you look forward is there a reason why we shouldn't get back to the 75%, 76% level on the renewal rate?

Hey, Walter, it's Mark. It's hard to say. I think if you look back over the -- like I like to do over a 10 year period, and take out the anomalies of the dot com bust, and the PPC things, that 75 to 76 renewal rate, is not the historical norm. It's a bit lower than that. I think we are approaching or at the more historical norm for the business, so can it get higher than it is today. yes. We've seen that before. I think if it's going there, it's going to continue to do like it's done in the last few quarters, which is an incremental basis of moving up a bit, on a quarter to quarter basis.

And then just within that improvement that you've seen over the last two or three quarters, can you give us a little more detail? Is that an improvement on renewal rate on brand new names, is that an improvement in renewal on people that have renewed more than once, or is it a combination?

It's both, so they're both getting better, which is great.

Okay, great, Thank you very much.

Thanks.

Sure.

(Operator Instructions).

We'll go next to Ed Maguire with CLSA.

Hi, good afternoon. With the price increase coming on the domain names over the next quarter, have you anticipated any aggressive programs on the part of registrars to induce renewals ahead of that?

Hey, it's Mark. No. We've had a couple of these in the past, and we really haven't seen any concentrated effort to kind of get in front of that, if you will, that's resulted in anything material. So I wouldn't expect it this time either.

And given the buildout here -- the focus on the internet defense services. What are you plans there, in terms of your expectations, and what you're hoping to drive from that business?

Sure. We look at that obviously as a growth area. It's small today. We started off with the core of iDefense, that is what we are trying to build this business around. And we added organically, our DDoS mitigation service. And that's a small business for us right now. But it's got a nice sales pipeline behind it. The major news internally around that, and the good news is getting Ben Petro on board, who is a very established guy, and particularly in this space, and knows how to build businesses from the ground up. So we like that business a lot. From a materiality standpoint. That will be beyond 2010 as far as registering.

Great, thank you.

And we'll take our final question from [Avi Fasheer] with Atera.

Hi, congratulations on the quarter. First, my first question is on the authentication revenue which was down 2%. Could you repeat what the causes were? I think I missed it on the call.

This is Brian. That's primarily in our VeriSign Japan subsidiary and user authentication.

Thank you. So the VeriSign was down in revenue. It's not related to the declining AUR.

Correct, the declining AUR was mix shift related.

And second question is, I know you don't want to comment on buybacks going forward. But perhaps on the one that already happened, could you explain to investors the rationale of buying marketable securities versus your own stock? And which other marketable security is offering you a better yield than your own stock.

This is Brian again, Avi. From a marketable securities perspective, we historically have been in Treasuries as very, very low yield. And we weren't getting much return on our cash due to the credit crisis. And so we went into AA or better, really into corporate paper and government bonds. And in the first quarter, we increased our yield considerably. So for the cash on our balance sheet, we are just looking for ways to increase the yield. First, protecting the capital itself, second, looking for yield and return. So it's just trying to increase interest income on the cash that we have. From a buyback perspective, we bought a lot back in fourth quarter, we bought back another $50 million this quarter. As I mentioned earlier, we still have $650 million that's authorized. And we continue to look for ways to return value to shareholders through repurchases, or through investment in the Company.

What I'm trying to understand as an investor. Is if you take the run rate, you're generating about 8% or 9% on your current market cap in free cash flow for the year. I don't think you're getting that in the securities that you're buying. You bought $50 million, but it's low relative to the possibilities of what you were able. And that's what I'm trying to understand the decision, in the first quarter to stick 50, versus more, and not obviously not on what you're going to do forward. How have you decided this quarter was taken to 50?

Unfortunately, I can't comment on future repurchases. But we have been aggressive historically on repurchasing stock. And we'll continue to look at ways to return value to shareholders.

Already. Thanks. And congrats on the results. They were very good.

Thank you.

And that does conclude our question and answer session. I'd now like to turn the call back over to Nancy Fazioli for any additional or closing remarks.

Thank you, operator. Please call the Investor Relations department with any follow-up questions from this call. Thank you for your participation and continued support. This concludes our call. Thank you and good evening.

And again, that does conclude today's call. We appreciate everyone's participation.