Workiva Inc (WK) 2017 Q4 法說會逐字稿

Good afternoon. My name is Jeffrey, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Workiva Fourth Quarter and Full Year 2017 Earnings Conference Call. (Operator Instructions) Adam Rogers, Director of Investor Relations, you may begin your conference.

Thank you, and good afternoon, everyone. Welcome to the Workiva Fourth Quarter and Full Year 2017 Earnings Conference Call. This afternoon, we'll begin with comments from Chairman and Chief Executive Officer, Matt Rizai; followed by Executive Vice President and Chief Financial Officer, Stuart Miller, and then we'll turn the call over to questions. Also on the line today are Marty Vanderploeg, President and Chief Operating Officer; and Jill Klindt, Senior Vice President and Chief Accounting Officer.

A replay of this call will be available until March 1. Information to access the replay is listed in today's press release, which is available on our website under the Investor Relations section. As a reminder, today's conference call is also being broadcast live via webcast.

Before we begin, I'd like to remind everyone that during today's call, we will be making forward-looking statements regarding future events and financial performance, including guidance for our first quarter and full fiscal year 2018. These forward-looking statements are subject to known and unknown risks and uncertainties. Workiva cautions that these statements are not guarantees of future performance. All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call.

Please refer to the company's annual report on Form 10-K for factors that could cause our actual results to differ materially from any forward-looking statements. Also during the course of today's call, we will refer to certain non-GAAP financial measures. Reconciliations of non-GAAP to GAAP measures and certain additional information are also included in today's earnings press release. And with that, we'll begin by turning the call over to our Chairman and CEO, Matt Rizai.

Thank you, Adam, and thanks to everyone for joining us today to discuss our fourth quarter and full year 2017 results. We posted strong results in 2017, We're pleased to have surpassed the milestone of $200 million in annual revenue in 2017 and ended the year with more than 3,000 customers. We continue to add new Wdesk users across public and private companies, state and local governments and universities, and we continue to diversify our revenue sources.

In 2014, non-SEC use cases represented only 25% of our subscription bookings. Non-SEC use cases are now 54% of our subscription bookings. This is a strong indicator of the success of our revenue diversification efforts, and we expect this trend to continue.

We continue to invest in improving our Wdesk platform and building our ecosystem to meet growing customer demand for broader base enterprise-wide solution, where we see great potential for widespread adoption and long-term growth. The power of Wdesk and the world-class service our teams provide drive our high-revenue retention rate, which is among the best in the B2B SaaS sector.

In 2017, we continue to augment our direct sales channel with partners. Our advisory and service partners, which include business process outsourcers and managed service firms, system integrators and global consultancies, offer a wide range of domain and functional expertise that broadens the capabilities of Wdesk, bringing scale and support to customers and prospects.

In addition, our technology partners, which include large and midsized independent software vendors, enable more data and process integrations to help customers connect critical transactional systems directly to Wdesk, which becomes a central repository of trusted data with powerful linking, auditability and control features.

Now I'd like to share a few example of customer use cases that illustrate the breadth and depth of Wdesk. Crossland Construction Company will use Wdesk to build dashboards for project tracking, billing, document management and M&A approvals. Black Hills Corporation is using Wdesk for reporting, required by Federal Energy Regulatory Commission. One of the most premier -- world's premier pharmaceutical companies will register and file its benefits plan in Wdesk.

Since mid-2014, we have continued to gain market share in the Sarbanes-Oxley Act market. We currently have over 600 SOX and internal controls customers, which places us among the fastest-growing SOX solutions in the market. Recent customer wins include Wendy's International, Capital One Financial, National Vision and [Teachers Insurance].

We continue to see growing demand for Wdesk among private companies for a variety of use cases. New customers include companies in pharmaceuticals, construction, investment management and natural resources. We also remain encouraged by the growth opportunities for Wdesk in performance and management reporting. New customers in this market include the Dayton Power and Light Company, [Kaumeng Foods] and the World Bank.

We see growing demand and success in the capital market space, as customers and their advisers leverage Wdesk in our services for IPOs, debt and other equity offerings and M&A deals to improve efficiency and accuracy in their transactions.

We remain the leader in the SEC compliance market, where we continue to add customers at large and small public companies because Wdesk is widely regarded as the best practice for SEC reporting and XBRL. We're also seeing more demand for Wdesk from foreign private issuers that use IFRS taxonomy because they're now required to submit their SEC filings with XBRL tagging. New customers using Wdesk for IFRS include MiX Telematics, Anglogold Ashanti and Globus.

We see increasing demand for Wdesk from state and local governments and higher education institutions. New customers in this market include public employee retirement systems, state government agencies, municipalities, universities and colleges, and local transportation and water authorities.

2017 was also a great year for our employees. Last month, Fortune Magazine named Workiva as one of the Best Workplaces for Technology. Our Wdesk platform also won the GRC Innovation Award for Best User Experience for Policy Management from analyst firm GRC 20/20.

In summary, our fourth quarter and full year 2017 results were strong. Over the past few quarters, we have accelerated investments in our platform and talent, and we continue to build our ecosystem. The critical pieces of our enterprise plan are now in place to meet our growing customer demand for a broader base enterprise-wide Wdesk platform.

We're making solid progress towards selling larger-sized deals, as shown by the data we're releasing today on the growing number of customers with larger annual contract values. We're encouraged by this trend and also by our pipeline of larger contracts. We're excited about the multiple growth opportunities in front of us, and we remain focused on executing on our initiatives. With that, let me turn it over to Stuart Miller.

Thanks. As Matt indicated, we're pleased with our results for the fourth quarter and full year 2017, which is where I'll begin my remarks, and then I'll comment on our first quarter and full year 2018 financial outlook. And thereafter, we'll take your questions.

We generated total revenue in the fourth quarter of $54.5 million, an increase of 17.5% from Q4 2016. Breaking out revenue by reporting line item. Subscription and support revenue was $45.5 million, up 18.8% from Q4 2016. 50% of the S&S revenue increase in Q4 came from new customers added in the last 12 months. The remaining half of the increase came from deeper penetration of our existing customer base.

Professional services revenue was $9 million in Q4, an increase of 11.3% from the same quarter in 2016. We expect the growth rate of subscription revenue to continue to outpace the growth of services revenue in 2018.

Turning to our supplemental metrics. We finished Q4 with 3,063 customers, a net increase of 291 customers from Q4 2016 and a net increase of 72 from Q3 2017. Our customers are passionate and loyal supporters of our solutions, as demonstrated by our subscription and support revenue retention rate of 96% for the month of December 2017 compared with 96.5% in December -- in September 2017 and 95.4% in December 2016. Customers being acquired or ceasing to file SEC reports accounted for a majority of revenue attrition, consistent with our experience to date. With add-ons, our subscription and support revenue retention rate was 107.6% for the month of December 2017 compared with 108.6% in September 2017 and 107.4% in December 2016.

Today, we're introducing a new metric to help investors track our progress in selling larger subscriptions. Each quarter, we plan to share the number of our customers with annual contract value, or ACV, at greater than $100,000 and at greater than $150,000.

As we define it for this disclosure, ACV equals quarterly subscription revenue times 4. Our press release today includes the historical data. For ACV of $100,000 plus, we had 324 customers in the fourth quarter, up 37% from 236 customers in Q4 2016.

For ACV of $150,000 plus, we had 146 customers in the fourth quarter, up 52% from 96 customers in Q4 last year.

Moving down the income statement. I'll talk about our results before stock-based compensation, that is on a non-GAAP basis. Please refer to our press release for a reconciliation of our non-GAAP and GAAP results.

Gross profit was $38.8 million in Q4, up 16.1% from the same quarter a year ago. Gross margin was 71.1% in the latest quarter compared to a gross margin of 72% in Q4 2016.

Now breaking out gross profit. Subscription and support gross profit was $37 million, equating to a gross margin of 81.2% on S&S revenue compared to $31.2 million or a gross margin of 81.4% in Q4 2016.

Professional services gross profit in the fourth quarter was $1.8 million, equating to a 19.9% gross margin, compared to $2.2 million or a 27.1% gross margin in the same period last year. We increased the headcount and compensation of our professional services teams to support initiatives in new markets and distribution channels.

Turning to operating expenses. Research and development expense in Q4 was $18.2 million, an increase of 30.5% from Q4 last year due to higher compensation and consulting expenses. R&D expenses as a percentage of revenue increased this quarter to 33.4% compared to 30.1% in Q4 last year, due to the higher level of investment in our platform to support our goal of accelerating our growth rate.

Sales and marketing expense for the quarter increased 20% from Q4 last year to $21.1 million. Sales and marketing expenses as a percentage of revenue this quarter rose 80 basis points to 38.7% from Q4 last year. Most of the increase is attributable to higher headcount and compensation for our sales team, reflecting our investment in the rollout of our enterprise strategy.

General and administrative expenses were $7.8 million in Q4, an increase of 41%, compared with $5.6 million in Q4 2016. G&A expense as a percentage of revenue in the latest quarter rose to 14.4%, an increase of 240 basis points from Q4 2016 due to growth in administrative headcount to support regulatory compliance and growth in our line functions, higher compensation and onetime severance costs.

Consistent with the guidance on the -- that we provided on our last call, operating loss was $8.4 million in Q4 2017 compared to the net loss of $3.7 million in Q4 of 2016.

Workiva's operating margin decreased 740 basis points in Q4 2017 versus the same quarter a year ago, primarily due to growth in headcount and compensation. Net loss was $8 million for Q4 compared to the net loss of $3.8 million in Q4 of 2016. We posted a net loss per share of $0.19 in Q4 compared to a net loss per share of $0.09 in the same quarter a year previous.

Turning to our balance sheet and statement of cash flows. We are pleased to generate positive operating cash flow in 2017. We expect operating cash flow to be positive again in 2018.

At December 31, cash, cash equivalents and marketable securities totaled $76.7 million, a decrease of $1.1 million compared with the balance at September 30, 2017.

In Q4 2017, net cash used in operations was $6.2 million compared with cash provided of $10 million in the same quarter a year ago. A larger net loss, payment of cash bonuses to employees and an expansion of accounts receivable were partially offset by higher deferred revenue in Q4.

At December 31, 2017, total deferred revenue increased $5 million from September 30, 2017. Short-term subscription and support deferred revenue rose $4.7 million in Q4, driven by new sales and conversions of contract renewals from quarterly to annual terms. We continue to make steady progress on converting quarterly contracts to annual contracts, which should wrap up in Q1 2019.

Services deferred revenue remained flat from the prior quarter. Long-term subscription support deferred revenue decreased $363,000 in Q4.

Recapping our full year 2017 results. Total revenue was $207.9 million, up 16.4% year-over-year. Subscription and support revenue was $169.3 million, increasing 18.3% over 2016.

Professional services revenue was $38.6 million, up 8.6% from the prior year. So our revenue mix in 2017 was 81.4% subscription and support, and 18.6% professional services.

Moving down to P&L, and again, focusing on non-GAAP expenses. Gross profit was $148.8 million, rising 16.3% year-over-year and representing a 71.6% gross margin. Operating loss was $24.8 million compared with a loss of $29.3 million in the prior year. Operating margin improved 447 basis points in 2017 compared to 2016 results. Net loss was $25 million in 2017 and net loss per share was $0.60, which compares to net loss of $29.7 million or $0.73 per share in 2016.

Now to provide some context for our financial guidance, I want to comment on our adoption of ASC 606, which is effective January 1 this year. We chose the modified retrospective transition approach. We will report under ASC 606 in 2018 and plan to provide a reconciliation between ASC 605 and ASC 606 each quarter during 2018. Guidance we provide today reflects our implementation of ASC 606. Application of ASC 606 will affect our income statement and balance sheet in 2018. ASC 606 will not affect our cash flow, of course.

Adoption of ASC 606 requires an opening adjustment to retained earnings on January 1. The opening adjustment will have a favorable impact on our retained earnings, estimated to be in the range of $7 million to $9 million. We'll share the details of the opening adjustment when we discuss our first quarter results.

Application of ASC 606 for Workiva in 2018 includes acceleration of recognition of professional services revenue on certain contracts, longer deferral of the incremental cost of obtaining a contract and increases in accounts receivable, deferred revenue, accrued expenses and other current liabilities. We expect ASC 606 will have an unfavorable impact of approximately $2 million on professional services revenue in Q1.

For the full year, and assuming we deliver the same services in Q4 2018 as we did last year, we expect the net impact of ASC 606 will not be significant on total revenue.

Due to the deferral of the recognition of customer acquisition costs under ASC 606, we expect operating expenses to benefit by approximately $4.5 million for the full year 2018. In addition, under ASC 606, we expect to increase in accounts receivable to be offset equally by a rise in deferred revenue and accrued expenses and other current liabilities.

Turning to our guidance for 2018. Our guidance on a non-GAAP loss from operations and non-GAAP loss per basic share excludes the impact of stock-based compensation. Please refer to our press release for a reconciliation of GAAP and non-GAAP guidance.

For the first quarter of 2018, we expect total revenue to range from $57.3 million to $57.8 million. Due to the adoption of ASC 606, we expect the growth rate from professional services revenue in Q1 2018 will be in the low single digits relative to Q1 last year. We expect GAAP operating loss to range from $13.7 million to $14.2 million. Non-GAAP operating loss is expected to be in the range of $7.8 million to $8.3 million. We expect GAAP net loss per share in Q1 to range from $0.33 to $0.34. Non-GAAP net loss per share is expected to be in the range of $0.19 to $0.20. Our loss per share guidance assumes 42.6 million basic and diluted shares outstanding.

For the full year 2018, we expect total revenue to range from $234 million to $236 million. We expect the growth rate of our subscription revenue to continue to outpace the growth rate of our services revenue. We expect GAAP operating loss to range from $57.1 million to $59.1 million. Non-GAAP operating loss is expected to be in the range of $32 million to $34 million. We do expect to post positive operating cash flow for the full year of 2018.

We expect GAAP net loss per share to range from $1.35 to $1.40. And finally, non-GAAP net loss per share is expected to be in the range of $0.77 to $0.82. Our loss per share guidance for the full year assumes 43.4 million basic and diluted shares outstanding.

Building an enterprise-grade platform takes time and investment, which are necessary commitments to generate additional sales. As Matt indicated, we have accelerated investments in our platform and talent over the past few quarters, to continue our plan of capitalizing on customer demand for an enterprise-wide Wdesk platform. Our investments have focused on additional functionality, greater scalability, data connectors, talent, training, packaging, partnerships and other initiatives toward our goal of accelerating revenue growth. Our guidance on non-GAAP operating loss today reflects the full run rate of these investments.

The crucial pieces of our enterprise plan are now in place, which is allowing us to slow the rate of hiring in 2018. Our plans to capture larger enterprise deals and achieve our long-term financial targets remain unchanged. Our 2018 guidance reflects the fact that we are in the middle of executing our strategy. As we discussed last fall, we expect to see progress from our enterprise strategy in bookings in the second half of 2018 and in revenue in 2019. We are encouraged by the growing number of customers with larger contracts and also by our pipeline of larger contracts.

In summary, Workiva posted another strong quarter. Demand remains robust for our platform, and we remain focused on executing our growth plan to capitalize on our multibillion dollar market opportunity. We're now ready to take your questions. Operator, we're ready for the Q&A session.

(Operator Instructions) Your first question comes from Tom Roderick with Stifel.

This is Matt Van Vliet on for Tom. So I guess, obviously, the increase disclosure around deal size is very much welcomed. And the growth that you've shown there pretty steady, is pretty impressive. But I guess, my question, trying to dig in a little bit more, you've added a lot of sales headcount to go after these enterprise accounts. But how much of the growth that we're seeing on these deal sizes is from sort of net new customers dropping into each of these buckets versus the hunter-farmer set-up that you had for a few years now really cultivating those deals larger and larger across both use case deployments and being able to cross sell additional use cases?

So if I can deconstruct your question a little bit. I think, recall that we moved to a management structure from a hunter-farmer model, and I don't think we missed the beat there. We've always pursued the land and expand strategy. I'd say that most of the growth that you're seeing and the larger contracts comes from deeper penetration of existing customers, as opposed to new logos debuting at that -- at those levels. So once customers get in and use Wdesk, they see the productivity benefits and makes the follow-on sale a bit easier.

And then I guess, looking at your bookings performance in the second half of the year and the pipeline build, how much more improvement do you think you need to get to sort of where your targets are in the second half for those enterprise deals relative to just the extended sales cycles at those larger deals just needing to play out?

So can you just repeat the question, I'm sorry.

Yes. Where do you guys feel like you're at in the progress of sort of improving and building out the enterprise-level sales team, where you are now versus maybe where you think you need to be to hit the targets that you're talking about of accelerating bookings in the second half, leading to revenue growth in '19?

Oh, I see. Okay, I understand now. I'm sorry, I missed the word sales. So we really -- we think we've built -- we've really -- the pieces are all in place, and we've -- we're in the market executing on the enterprise strategy. We invested pretty heavily, we have been investing pretty heavily in the go-to-market strategy. And as I indicated in my comments, we're at the full run rate of those investments.

Well, I mean, we're confident with our current pipeline that, I think, there's really not any more improvements to be made, so to speak. It's just that a matter of the sales cycle to take a hold of itself and execution of that. And since the deals become larger, so the sales cycle gets a little longer. But the pipeline indicates to us that we are pretty encouraged with the current activities for the second half of this year.

And then if I can just slip one more in. You mentioned over 600 customers now on SOX and internal controls. What -- where are we getting to in the point of total revenue mix of the SOX product and overall contribution?

So we have not broken that out historically, and don't really have any intention of doing so. One of the challenges there is that while the -- a particular sales team may sell the application and it may be designated as SEC or SOX, the utilization of that seat after the fact is -- doesn't necessarily track the way it was sold originally. They're using for a lot of other things, so it may be even confusing to try to pull that information and communicate it. We couldn't be clear in the way we do that.

Your next question comes from Brian Peterson with Raymond James.

So I wanted to hit on the revenue per customer dynamic a bit, and I appreciate the disclosure on the bigger deals, but it looks like the subscription revenue per customer is up about 6%, 7% based on my math, and you guys have the retention with upsells kind of in the 7% to 8% range. And given that we've seen a lot of this upsell activity to kind of this 6-figure deals, is there any offset in your customer mix to maybe suggest why that isn't up in the double digits? I'm just trying to understand the moving parts there, Stuart.

Well, remember, about half of the increase in S&S is new logos. And so they're not affecting that piece. So I mean, that's the math of it, so it's only half of that is coming into the second part of that equation.

Okay. And just a question, as it relates to quotas as I know you guys said you feel that the sales team and the investments are kind of in place for success. Given these enterprise deals, should we also expect an increase in quotas for the sales team? And how should we think about efficiencies of that team into '18 and then into '19?

So as we mentioned, we're anticipating the enterprise strategies to -- enterprise strategy to be impacting bookings in the second half of the year and then showing up in revenue in 2019. So that would indicate our expectation of -- to your question, we're not going to discuss individual quotas, but we definitely have got teams going after larger relationships. Remember that we're already in 70% of the Fortune 500 and have gotten some really strong relationships there.

Your next question comes from Eric Lemus with SunTrust Robinson.

As far as I can gather from what you're saying about as far as accelerating, your investment in sales and marketing for enterprise-wide product and platform, so is it safe to say that it was really unexpected that you think that you have product be ready for the market for the enterprise-class solution?

Yes, absolutely.

Yes.

And so are these sales people actively selling these in the market or is it still kind of in a beta-type program?

No. The sales people are in the market right now are actively engaging with the customers and the necessary people to make sure that pipeline is strong and executable.

Okay, great. And then just one last question on open data initiative. Are you guys still seeing any sort of tailwinds on that particular aspect?

Are you talking about the mandate from the government?

Yes, exactly.

Yes. That's another thing that has a long tail on it. We're starting to see some activity, but it hasn't impacted the revenues in a material way yet.

Your next question comes from Michael Nemeroff with Crédit Suisse.

(inaudible) for Michael. So just following up on Matt's question, I believe, Stuart, I think you mentioned that most of the growth in the ACV by customer disclosure is driven by deeper penetration of existing customers. And interestingly, I believe that customer adds actually inflected positively in 2017. So when I try and reconcile your revenue guidance within that customer adds in 2017 and assume the same sort of cadence from a penetration perspective for the customers you've just added, doesn't seem like you're assuming a lot of net new customers in 2018. Is the revenue -- I guess sort of the question is, is it just simply conservatism or am I missing something?

So you're making some forecast on larger customers in 2018?

I'm making some forecast because your net customer adds that you just recently added, I'm assuming it's at a lower ACV than the 150k or 100k plus ACV. And if you just assume the sort of same sort of land and expand, call it, it's really easy, I guess, to get your revenue guidance. That's what I'm trying to get at.

Well, I mean, again, I don't think we're providing any guidance on the ACVs for 2018. I mean, we report it every quarter, but we're not going to provide any guidance on that metric. So I don't know what else to say, but that...

Okay. I mean, that's fine. And then on the services revenue, the $2 million unfavorable impact in Q1, how should we think about services seasonality under ASC 606 for Q2 to Q4?

Yes. It's a fair question. So we do fair amount of work in the fourth quarter in anticipation on delivery in Q1. And that's why the $2 million that normally would have been recognized in Q1 is not going to get recognized this time. And if we continue with the same cadence, we would expect to pick up most of that or all of it in the fourth quarter later this year. So that is really -- Q1 is obviously the busiest time for us because a high percentage of our SEC customers are filing their 10-K in Q1. But there is this work that goes on in Q4 in anticipation of that.

Your next question comes from Rob Oliver with Baird.

So on the 600-plus number count on the SOX customers, is that -- by our quick math, 25% growth year-over-year, so great job there. I was just wondering if you guys could maybe, without obviously giving numbers, provide a little bit of color on some of the other areas other than SOX where you're starting to have conversations and see some tractions certainly among our coverage universe as well as conversations we're having with companies. We're hearing a lot more interest percolating around compliance, vendor compliance, risks and controls, and it seems to feed nicely into your sales. Just curious qualitatively beyond SOX and SEC, what you might be seeing?

Well, in the marketplace, we're seeing a lot of interest in expansion around financial reporting, that last mile of financial reporting and how that fits into all the financial transformations that are taking place in the industry now. And it's really a key piece where we have unique functionality, and so we're seeing a lot of interest in that realm. The SOX interest continues. SOX is a market that's -- on the expense side, so it's never given the focus that some of the other strategic stuff is, but it's tracking nicely. And we see activity in using our platform for a lot of the different use cases we described before. But in the new areas, we continue to see interest in providing things that really customers haven't had in the past in terms of the features we have in the platform.

And we're also seeing quite a bit of interest from the partners that we're developing relationship with through their customers. And as you know, these days, to sell a cloud-based product businesses are really looking for, best-in-class of certain types of capabilities and this ecosystem of partnership, and partnering with -- whether it's the technology partners or integrators, it's really helping both us, our partners, as well as customers. I think that's the new way of deploying the capabilities of technology into businesses. So we're pretty encouraged by that as well.

Your final question comes from Stan Zlotsky with Morgan Stanley.

So a very impressive growth on the large customer count, and maybe if you can just qualitatively help us get to get a sense for. How big is this greater than 100k ACV base as a percentage of your overall company ACV, I guess, on the subscription ACV?

We certainly -- we sort of disclose where we're going to on that, and not going to roll it up. I mean, we obviously have lots of customers that are quite a bit larger than that. (inaudible) 150.

Got it. As far as us looking at these numbers and your investment plans, when -- and given the large customer dynamics, right? When could we start to see revenue retention really started to take up? Is it a matter of waiting until 2019 when the upsell motion really starts to kick in, in the back half of the year of 2018?

Yes. So when you say revenue, I think you mean revenue retentions with add-ons, right?

Yes, correct. And maybe returns to like the 110-plus range.

Yes. You know we don't give guidance on the -- any of the -- those kind of measures. But recall what I said that we think that we'll see the impact in the second half of '18 on bookings and then in the 2019 on revenue, and that's -- again, this is something that's been in the works for quite a while, working with customers and really been driven by customer demand. This is not a "build and they will come" thing.

Got it. Understood. And then last one from me, I know you guys -- you don't like to talk about it very much, but billing. And I have to ask the question. If you look at the total billings, current billings, even if you exclude the long-term deferred aspect, just look at current billings, current billings slowed to 2% growth year-on-year in Q4. Anything that we need to keep in mind in -- that happened in Q4 this year that would drive -- the outcome there?

Thanks, Stan. No, not really. I mean, again, the apples-to-apples comparison or just sort of using billings to predict bookings is going to get a lot easier once we get substantially all of our customers on the same maturity of contract, which should be around Q1 of 2019, as I indicated, as we made those conversions, we finish those off.

In closing, I want to thank you for joining us today. Operator, you may now end the call.

This concludes today's conference call, you may now disconnect.