BLACKBERRY Ltd Q4 FY2020 Earnings Call

Good morning, and welcome to the BlackBerry Fiscal Fourth Quarter and Fiscal Year 2020 Results Conference Call. My name is Josh, and I will be your conference moderator for today's call. During the presentation, all participants will be in a listen-only mode. As a reminder, this conference is being recorded for replay purposes. I would now like to turn today’s call over to Christopher Lee, Vice President of Finance. Please go ahead.

Thank you, Josh. Welcome to the BlackBerry fiscal fourth quarter and fiscal year 2020 results conference call. With me on the call today are Executive Chairman and Chief Executive Officer, John Chen; and Chief Financial Officer, Steve Rai. After I read our cautionary note regarding forward-looking statements, John will provide a business update, and Steve will then review the financial results. We will then open the call for a brief Q&A session. This call is available to the general public via call-in numbers and via webcast in the investor information section at blackberry.com. A replay will also be available on the blackberry.com website. Some of the statements we'll be making today constitute forward-looking statements and are made pursuant to the safe harbor provisions of applicable U.S. and Canadian securities laws. We'll indicate forward-looking statements by using words such as expect, will, should, model, intend, believe, and similar expressions. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions, and expected future developments as well as other factors that the Company believes are relevant. Many factors could cause the Company's actual results or performance to differ materially from those expressed or implied by the forward-looking statements. These factors include the risk factors that are discussed in the Company's annual fillings and MD&A and the COVID-19 coronavirus outbreak, which is negatively impacting public health, financial markets, and global economic activity. You should not place undue reliance on the Company's forward-looking statements. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, except as required by law. As is customary during the call, John and Steve will reference non-GAAP numbers in their summary of our quarterly results. For a reconciliation between our GAAP and non-GAAP numbers, please see the earnings press release and supplement published earlier today, which are available on the EDGAR, SEDAR, and blackberry.com website. I will now turn the call over to John.

Thanks, Chris. Good afternoon, everybody. Before I speak about the BlackBerry results, I’d like to acknowledge everyone who’s doing all they can to contain and overcome the COVID-19 virus. BlackBerry has taken a number of steps to help the global community including enabling remote working for our customers and employees. And we are taking the lead by offering a limited license of our enterprise software products free to organizations around the world for 60 days. Now, on to the results. As Chris stated, I will reference non-GAAP numbers in my summary of our financial results unless otherwise stated. Let me start off by some highlights for fiscal 2020, the fiscal year entirely. BlackBerry achieved another year of profitable growth. We're pleased to report $1.1 billion in total Company revenue, resulting in 20% growth year-over-year. Software and Services revenue grew 26% year-over-year. Earnings per share of $0.13; this amount exceeded the expectation we raised during the year. Positive free cash flow of $14 million. Perhaps the best news is the strong set of products released in the past fiscal year. We released over 30 new products. So, I’d like to give you some highlights of the ones we’re really excited about: QNX Hypervisor 2.0 for Safety, which achieved the highest ISO safety standard in the industry; BlackBerry Intelligent Security, which uses AI to provide adaptive security and continuous authentication to overcome static security vulnerabilities; CylanceOPTICS 2.4, our enhanced endpoint detection and response product; a single agent platform to deploy both CylancePROTECT as well as CylanceOPTICS; and our Mobile Threat Defense product that integrates our AI-based endpoint security capabilities with our portfolio of endpoint management technologies. Our peers do not have a full mobile solution like we do. Last but not least, the BlackBerry Digital Workplace, which delivers lightweight secure desktop virtualization, eliminating the need for VPN and adding AI-based protection. Digital Workplace can be deployed on corporate and personally owned devices used by the entire workforce. This is a must-have for secure remote worker productivity and business continuity. Additionally, we made tremendous progress in the development of the Spark platform. I will speak more about that later. Now, let me provide some highlights for the fourth quarter, fourth fiscal quarter. Total revenue came in as $291 million. We achieved positive year-over-year Software and Services billing growth. We also have healthy sequential billing performance from enterprise Software and Services. Gross margin was 77%. Operating income was $51 million and operating margin was 18%. Both of these are very strong results compared sequentially, with increases of $20 million and 7% respectively from Q3. EPS came in at $0.09, which was $0.05 higher than expectations we had for the quarter. Free cash flow of $32 million contributed to a total ending cash and investment balance of $990 million. Let's move into the business commentary. Let me start with a sentence on licensing business. Revenue increased 9% year-over-year with better than expected performance due to some business that actually came in early. Moving on to the IoT business. The IoT business underperformed in the quarter due primarily to BTS, which has been unexpectedly impacted by the slowdown in the auto industry supply chain due to COVID-19. Unfortunately, we expect this trend to continue over the near future due to the temporary global auto production shutdowns and related slowdowns of auto sales. Customers and prospects have become more cautious in their decision-making related to capital expenditure and development. The leading indicator to us was that we expected two large transactions with reliable customers that were, unfortunately, delayed. While our fourth fiscal quarter results were impacted, we believe these two delayed transactions will occur as the business environment returns to normal. On a positive note, BlackBerry QNX continued to gain design wins. We were chosen for 31 design wins in the quarter, with 16 in the automotive market and 15 in the general embedded market. Within the auto market, the vast majority of design wins came in ADAS, the advanced driver-assistance systems, and digital instrument cluster applications. These wins secured for our customers like Bosch, Continental, and others just to name a few, continue the trend of increasing ARPU and volume in the future, and will continue to be the leading provider of safety-certified software to the industry. Within the general embedded market, we saw increased demand in industrial and medical verticals, including being chosen by Wabtec Corporation, a global leader in transportation solutions who merged with GE Transportation last year. As noted in the last two quarters, growth in the general embedded market has been a strategic priority for us at BlackBerry. A brief update on our radar business. In the quarter, we saw continued growth in both the number of shipped units and service revenue. We added seven new customers, resulting in 50 new customers in the fiscal year. Additionally, we continue to have steady repeat buying from existing customers. Moving on to our Enterprise Software and Services business. The sales team executed well, resulting in sequential billing growth in the high teens percentage. Our fourth quarter ESS billing was at its highest level in fiscal 2020. The billing strength was across all the ESS businesses, led by strong performance from both the UEM, the endpoint management, as well as AtHoc. On the customer front, our regulated industry business such as government financial services and healthcare remains healthy and stable. We also experienced strength in our non-regulated industry business, most notably the energy and utility vertical, as well as the manufacturing vertical. We added several large size wins, both new logos and upsell in competitive situations. Let me highlight a few: General Dynamics, a Fortune 100 aerospace and defense leader; CGI, a global professional services and consulting company; Johns Hopkins Aramco Healthcare, a leading healthcare provider in Saudi Arabia; EVN Group, one of the largest producers and transporters of electricity in Europe; and Nippon Steel, one of the world's largest steel producers. Our pipeline is building for our new products as well, notably for the MTD, the Mobile Threat Defense, and the BlackBerry Intelligent Security. Now, on to our BlackBerry’s Cylance business. Revenue was slightly up year-over-year against a reasonably tough comparison. Billing increased sequentially as we anticipated. We're highly competitive against other next-generation AV players because of the following reasons: first, BlackBerry Cylance is the best mobile solution in the market; second, our lightweight solution protects all endpoints, whether they are connected or not; third, instead of being cloud-only, we support cloud-managed, on-premise, and hybrid deployment models; and last but not least, we're compatible with both the current and legacy device operating systems, especially on the desktop. This was a strong quarter for new logos; Cylance won over 300 new customers. Some of their new logos won in a competitive environment include Fonterra Co-operative Group, the world's largest dairy exporter, a notable state healthcare organization in Australia, and a Fortune 500 financial services company based in the Midwest of the United States. As a result, ARR was $167 million, up 9% year-over-year. Our dollar-based net retention rates continue to be over 90%. We ended the quarter with 18% year-over-year growth with active subscription customers. As I previously said, we believe the momentum will only continue now, that BlackBerry Cylance has a robust portfolio like other BlackBerry capabilities in the market. Before I turn the call over to Steve, let me update you on our Spark platform and the Cylance integration. We have made tangible progress in the development of Spark, a secure IoT platform. This past February, we announced the release of our Unified Endpoint Security or UES layer within the Spark platform that leverages AI, machine learning, and automation to deliver zero trust security across all fixed and mobile endpoints. The UES layer is supported by six initial products, which are Endpoint Protection Platform, the EPP; Endpoint Detection and Response, the EDR; Mobile Threat Defense, MTD; Continuous Authentication; Data Loss Prevention, known as DLP; and Secure Web Gateway. These products work seamlessly together to analyze and define risk, make contextual decisions based on large amounts of shared data, and dynamically apply a set of policy controls to address the risks of our customer environment. Our platform development is in line with market convergence noted by Gartner. We see the consolidation of MTD offerings with EDR and EPP tools, calling this combined stack Unified Endpoint Security. Gartner sees the stack forming a single solution during the next three to five years and indicated organizations need to invest in UES. Gartner also noted that 70% of organizations will need a combined endpoint management council by 2024 and 50% of organizations will have Mobile Threat Defense by 2022, which is up from 20% this year. Given our product and the marketplace progression, we are now ready to increase go-to-market synergies and pursue UES and UEM opportunities. Accordingly, we have successfully integrated the entire Cylance organization, including sales and R&D teams into our IoT business segment, effective March 1, 2020, which was just a month ago. We believe the unified team leads to broader customer coverage, a richer product roadmap, a clearer sales message, and most importantly, very differentiated offerings. The value proposition to a customer is that BlackBerry Sparks provides the highest level of security and management with a simpler yet more productive user experience on any endpoint, fixed or mobile, from any location over any network. Many of you have asked me over the past several quarters about BlackBerry's prospects in the competitive landscape, especially against much larger players. I could not provide you with a complete answer until now because the solution at the time was under development. We now have a differentiated technology architecture ready to ship to the market. Today, our UES products work with BlackBerry UEM. However, we recognize that customers may be using our competitors’ UEM products. Therefore, in the near future, as part of our roadmap, our UES solution will be made compatible with Intune, AirWatch, and other competitors’ UEM products to give customers the best of both worlds. Namely, enjoying the benefits of both the investment while gaining the higher security and management that BlackBerry provides. We believe UES changes the competitive dynamics, and our objective now is to gain market share, because UES is complementary to, but not a direct competitor of the non-BlackBerry UEM products. Additionally, BlackBerry UEM will maintain our leadership in the regulated industry due to our continued focus and commitment to security and management. Over time, we believe that Spark architecture expands our total addressable market, including in the IoT security area. With that, let me turn over to Steve to provide more details about our financial performance.

Thank you, John. My comments on our financial performance for the fiscal quarter will be in non-GAAP terms unless otherwise noted. Please refer to the supplemental table in the press release for the GAAP and non-GAAP details and reconciliation. We delivered fourth quarter non-GAAP total Company revenue of $291 million and GAAP total Company revenue of $282 million. I will break down revenue shortly. Fourth quarter total Company gross margin was 77%. Our non-GAAP gross margin includes software deferred revenue acquired but not recognized of $9 million and excludes stock compensation expense of $2 million. Fourth quarter operating expenses of $172 million were down sequentially by $23 million. We continue to invest in product development and go-to-market. At the same time, we continue to demonstrate cross-discipline across the entire Company and gain operating leverage, in particular at Cylance. Our non-GAAP operating expenses exclude $35 million in amortization of acquired intangibles, which equates to about a $0.06 impact on GAAP earnings per share. Additionally, our non-GAAP operating expenses exclude $27 million in goodwill and long-term asset impairment charges, $15 million in stock compensation expense, $3 million for software deferred commissions expense acquired, $1 million in acquisition and integration costs, $1 million in restructuring costs, and a charge of $5 million related to the fair value adjustment on the convertible debenture. Fourth quarter non-GAAP operating income was $51 million, and fourth quarter non-GAAP net income was also $51 million. Non-GAAP earnings per share was $0.09 in the quarter. Our adjusted EBITDA was $68 million this quarter, excluding the non-GAAP adjustments previously mentioned. This equates to an adjusted EBITDA margin of 23%. I'll now provide a breakdown of our revenue in the quarter. Total Software and Services revenue was $287 million, representing 99% of total Company revenue. Other revenue is solely comprised of service access fees, which were $4 million, and were expected to decline, given the continued wind down of this legacy business. Recurring Software and Services revenue, excluding IP licensing and professional services revenue, was about 90% in the quarter. Now, moving to our balance sheet and cash flow performance. Total cash, cash equivalents, and investments were $990 million at February 29, 2020, which increased by $20 million from November 30, 2019. Our net cash position was $385 million at the end of the quarter. Fourth quarter free cash flow before considering the impact of acquisition and integration expenses, restructuring costs, and legal proceedings was positive $36 million. Cash generated from operations was $35 million and capital expenditures were $3 million. That concludes my comments. I'll turn the call back to John to provide our financial outlook for fiscal 2021.

Thank you, Steve. Currently, I'm sure you all agree there's a lot of uncertainty across the global economy due to COVID-19. Therefore, it’s not prudent for BlackBerry to provide any specific fiscal 2021 financial outlook as things are changing almost on a daily basis. However, I'd like to make some macro comments on our business. Our revenue will most likely be negatively impacted by continued headwinds to global auto production and sales. We anticipate a continued delay in capital spending in the auto, as well as the other industries. At the same time, this negative impact could be partially offset, because our product and services portfolio is well-suited for enterprises to meet the challenges of business continuity driven by the dramatic expansion of remote workers. We are known for offering the best security and productivity solution. These products and services include our UEM product, Cylance, Digital Workspace, SecuSmart, which is a secure voice and text solution, as well as AtHoc, our crisis communication solution, including the new Situation Response product, which manages the entire lifecycle of a crisis. In fact, we are experiencing increased demand. More transactions and inquiries come in daily from new and existing customers, resulting in more licenses being deployed. Furthermore, our Cylance products, including CylanceGUARD, our cloud-based managed detection and response offering, are helping customers combat growing cybersecurity and privacy risks as the number of BYOD endpoints increases in a remote working environment. While it is difficult to predict the volume of business year-over-year, the Company remains strongly focused on overall financial health in fiscal 2021. The management team has managed through uncertain times in the past and has a track record of balancing profitability and investment for long-term growth. As it relates to the shape of fiscal 2021, we anticipate a tough first quarter due to COVID-19's impact on our business. This may linger into the second quarter, but we do anticipate a stronger second half of the fiscal year versus the first half of the fiscal year. When looking beyond 2021, we do not believe this current global crisis changes BlackBerry's strategy or the thesis of any of our long-term profitability growth and value creation. I would now like to open up for Q&A. Josh?

We will now begin the question-and-answer session. Our first question comes from Daniel Chan with TD Securities.

Given the macro uncertainty, how are you thinking about capital requirements? In particular, how much do you need and what are your plans for the convert?

Yes. After paying off the convert, we have $385 million of cash and equivalents. We have made some assumptions under a stress test environment. One assumption is that we will pay back our convert. The good news for paying back our convert is that we would save approximately $23 million a year in interest payments. Obviously, the cash balance will go down quite a bit. We also assume there is no financing work being done, partly because, as you know very well, last couple of weeks, the market hasn't really been available. I think it’s starting to loosen up a little bit. But we assume no financing and no dramatic cutback of headcount or investment for the future. This is why I said earlier, we're going to balance profitability and long-term growth. We know this will pass, and we believe we have a very competitive strategy and products. We don't want to compromise the future, but we also don't want to put ourselves in a financially difficult position. We're going to be working on balancing that. But we're not saying we're going to overhaul anything to disrupt our investment thesis. Given these as kind of background, we ran through the scenario of revenue coming down by 20%, 30%, 50%, which anyone would do in modeling, and we believe we are quite comfortable in extremely extreme conditions, which we are not anticipating. We're quite comfortable to be able to last the liquidity and the health — financial health for a couple of years.

I want to shift gears a little bit to the enterprise software side. It sounds like things are improving there. Can you give us a sense of whether the enterprise software segment grew year-over-year? Maybe give us a sense of how well you see your go-to-market strategy and your channel developing?

Yes. I don't have the exact year-over-year numbers, but from a billings growth perspective, we saw very healthy Q4, better than double-digit over Q3, which seems good. The businesses are there. We had a hiccup, but I think we've overcome it. We have people very committed to going after the business. We have the infrastructure built up for both the renewals and new businesses that we won't let fall through the cracks. A while back, it was really on us for not being more diligent on some of this stuff. Now, I think those are all resolved. We have a number of layers that want to sell the business, both in the renewals and the new logo. We have a bigger sales force now, and the combination of the Cylance with the IoT portfolio makes it even more exciting. Each of our sales reps now has more to sell. The Cylance sales reps can sell the UEM, AtHoc, and other products. The UEM sales force can now also sell the UES product, which includes a lot of Cylance's AI technology. We feel good about the focus and how we align the territories. Most of our sales are still going direct, but we are building our channel business, which will probably start benefiting midyear this year or towards the end of the year.

And your next question comes from Daniel Bartus with Bank of America.

First, I wanted to ask about the competitive environment for endpoint security. So, on the one hand, we have CrowdStrike growing very well, and they seem to have a similar approach as Cylance. Then, we have others like VMware and Microsoft who can follow your moves to integrate the classic UEM business with endpoint security. It would be great to just get an update on the competitive landscape you're seeing for Cylance. And I'm curious if the combined UEM and security is a real conversation yet with customers. I have a quick follow-up.

Okay, that is a good question. I took a little while to lay it out why we win some of the Cylance deals. As I said earlier, Cylance has secured over 300 new logos in the quarter. We won against formidable competitors. It looks like where Cylance won, the win rate essentially comes down to a few key differentiators: A, we’re the mobile leader; B, we don't always need the cloud, which means we can secure endpoints both offline and online; and C, the combination of our entire Cylance portfolio with the managed services and management tools that UEM has is exactly where the market is going, verified by Gartner. Gartner names this whole segment Unified Endpoint Security, which is a combination of mobile and fixed, cloud and on-premise, and also manages threat detection and protection. So, we happen to be early providers of the product, and I’m hoping that gives us a significant competitive advantage over some of our larger competitors. Furthermore, many of you have asked about our traditional competitors providing site licenses. If you look at everything we offer, we are more competitive in both price and product sophistication.

Great, that's very helpful. And then, just quickly on the licensing strength. When we entered this year, you guys were thinking that segment might be down 5% or so year-over-year. And then, it surprised us with a 15% increase. Can you just walk through what changed throughout the year? And more importantly, did this strength come at the expense of some fiscal '21 licensing strength?

Yes. I like to be more conservative. It is a good business with very good margin, and unfortunately, it has been somewhat lumpy. The timing is a little harder to predict than with enterprise transactions. Because of that, I prefer to still plan it about the $250 million mark for FY21 and hope to outperform that. But it is really hard to predict. However, for this quarter, I genuinely didn't expect such strength.

Your next question comes from Paul Treiber with RBC Capital Markets. Please go ahead.

Just trying to understand the BTS segment a little better. Could you speak to the magnitude of the decline in the quarter? And, is that driven predominantly by royalties and volume of production, or are there other nonrecurring items in there, like professional services or licenses of tools that may have contracted?

Unfortunately, Paul, it's a little bit of everything. Royalties are down, and we believe certain projects are being delayed, which is causing apprehension among our Tier 1 clients. While the projects are not gone, they are stalled due to concerns over auto sales figures. We will continue to work closely with our auto customers because they will come back; it may take a quarter or another quarter, but that's what I expect.

That's helpful. Just shifting to COVID-19, regarding the promotions that you've implemented or announced, could you provide some updates? Some metrics on the uptake and what you expect in terms of potential conversion longer term?

Okay. This is — my people are probably going to yell at me for sharing this, but I'll give you the update. In the first week, I think, we saw our pipeline grow by at least $30 million; these are strong pipelines because they indicate urgent customer needs. We're seeing that customers are able to process appeals in record time. So this is an environment where we, unfortunately, benefit from the crisis. We're doing well in that area. That's about the only metric I could share with you.

Your next question comes from Mike Walkley with Canaccord Genuity. Please go ahead.

Just following up a little on cost structure. How should we think about kind of the investment level? It sounds like you guys feel good with the team in place and want to invest for the long-term, but OpEx is a little lower than expected this quarter. I imagine it could be lower again, just given lack of travel and entertainment projects. But is there an OpEx rate to consider looking at for the calendar year?

I did not calculate that. We know we have a number of levels. For instance, as part of our plan, we have a replacement for attrition of headcount. Given this environment, we'll still be hiring people where we have made some recent offers, but we won't hire billable roles such as quota carriers. Thus, this could help us boost revenue. In other areas, unless it's very specific, we are slowing down hiring. Partly because it’s difficult to conduct interviews and process background checks remotely, which slows things down significantly. So, it should naturally result in some cost reductions. Of course, we are also watching our capital spending very carefully.

Just my follow-up question. Circling back to licensing, which was strong as you laid out this year. Can you share with us just heading into this year what the recurring revenue run rate is? I know $250 million might be a good number for the year, but is there a recurring piece that feels pretty solid coming up?

In my model, as I said last year, I realize I probably don't have a whole ton of credibility, because I'm always saying it's about $250 million. But I'm hoping you will believe me a little more this time. Last year, we had many elements impacting it, arriving throughout various times of the year. I believe this year, planning on $250 million is reasonable.

Your next question comes from Gus Papageorgiou with PI Financial.

Just a couple of questions. Steve, on the $27 million goodwill impairment, can you just tell us a little bit about what that was for?

The impairment was $22 million, and it related to the BBM consumer piece. This was a licensing arrangement we had, which we were no longer operating, leading us to allocate some goodwill to it in the past. Since that service was shut down during the year, we needed to recognize the impairment.

And then, I guess on QNX and the auto space. We are seeing volumes under pressure here in the short-term, but part of the plan for QNX is that you should increase your market share along with ASP growth as car manufacturers adopt more software modules. Do you think the ASP growth is going to get pushed back as well, or do you think it’s just volume issue in the short-term but we should still see ASPs increase this year and then increase again next year?

It is short-term in a volume base, not the ASP. The ARPU has gone up. Over the last several quarters, when we announced the results, we talked about design wins in clusters, instrumentation, hypervisors, ADAS, OCA, and these wins all carry a higher ARPU and ASP compared to traditional business.

Your next question comes from Paul Steep with Scotiabank. Please go ahead.

John, can you talk to us a little bit about AtHoc and what we've seen there? I'm assuming you're seeing a lift in that segment?

Yes, AtHoc is performing well in the current environment. For those who may not be aware, it is very strong in the United States federal government sector, with over 2 million seats in service, including the armed forces. We also have presence in Canada with AtHoc in the parliament and other G15 countries. We're beginning to diversify our business beyond just the federal space, as we see opportunities with state, local, and education markets. This is an area poised for growth. We just released our latest product focused on lifecycle management of crises, which we are excited about. I believe AtHoc will be a good growth engine moving forward.

Great. And then, the last one for me would be about the organization. You've integrated Cylance, and I'm curious about updates on your sales force and how you expect to use any cost savings from your recent layoffs, particularly towards growth or other initiatives?

I'm very pleased with how we've integrated two organizations that traditionally operated under separate infrastructures. It allowed us to select the top performers from both legacy BlackBerry and Cylance, optimizing our resources. This integration has helped reduce management infrastructure costs, allowing us to redirect funding towards hiring representatives globally. We’ve simplified our organization while capturing talent, and as we cascade down to regional managers and country managers, we have the luxury of choosing the best candidates. I believe this will lead to a cleaner structure and a better opportunity to leverage our talent pool.

Your next question comes from Trip Chowdhry with Global Equities Research. Please go ahead.

Very good execution in a terrible environment. I have two quick questions. First, regarding your Digital Workplace. I think you're offering this product free for six months. Do you see that business giving you some uplift? You mentioned in your prepared remarks that it would be significant in the second half. Do you think that product is playing an important role?

Digital Workplace is a brand new product for us. We released it recently, and it's slightly early to tell, but we have seen good license movement due to this environment. I’ll reserve my comments on its impact until a quarter or two from now, but we are optimistic, especially since it eliminates the need for VPN and works well on BYOD devices. We are also integrating CylancePROTECT, and I'm hopeful we're doing the right thing.

That's really wonderful. So, the container—I understand it in the context of your platform. Basically, if I'm a customer of your Unified Endpoint Management and use any service, I put it into that container, by default, they will have the same level of security as the underlying platform provides. Is that the correct way to think about it?

Yes. The container I referred to is our endpoint management software, which combines mobile device management and application management. It wraps around every application, protecting them from external threats. So, that's what I'm talking about when I mention our container technology.

That is all the time we have for questions. I would like to turn the call back over to John Chen, Executive Chairman and CEO of BlackBerry for closing remarks.

Okay. Thank you. I was just having fun. But, thank you very much for your time today. We look forward to speaking with you at our Analyst Day, which unfortunately we now need to be on webcast because of the work in shut-in place. It will be webcast on April 21st. Lastly, I’d like to take this opportunity to hope you and your family stay healthy and safe as we work together through these challenging times. This crisis shall pass. I look forward to interacting with all of you. Thank you very much for your time.

This concludes today's call. Thank you for your participation. You may now disconnect.