Biolife Solutions Inc Q3 FY2021 Earnings Call

Good day, and thank you for standing by. Welcome to the Third Quarter 2021 BioLife Solutions Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session and to ask a question, you'll need to press star one on your telephone. Please be advised today's conference is being recorded. The conference will now begin. I would now like to hand the conference over to your first speaker for today, Mr. Troy Wichterman, Chief Financial Officer of BioLife Solutions. Please go ahead, sir.

Thank you, Eli. Good afternoon, everyone. And thank you for joining our Third Quarter Earnings Call. Joining me today to discuss our results are Mike Rice, Chairman and Chief Executive Officer, and Rod de Greef, President and Chief Operating Officer. Earlier this afternoon, we issued a press release which detailed our financial results and operational highlights for the three and nine months ended September 30th, 2021. As a reminder, during this call, we may make certain projections and other forward-looking statements regarding future events or the future financial performance of the Company or its acquisitions. These statements are subject to risks and uncertainties that may cause actual results to differ materially from expectations. For a detailed discussion of the risks and uncertainties that affect the Company's business and that qualify as forward-looking statements, I refer you to our periodic and other public filings filed with the SEC. Company projections and forward-looking statements are based on factors that are subject to change. And therefore, these statements speak only as of the date they are given. The Company assumes no obligation to update any projections or forward-looking statements, except as required by law. During this call, we will speak to non-GAAP or adjusted results. Reconciliations of GAAP to non-GAAP or adjusted financial metrics are included in the press release we issued this afternoon. These non-GAAP or adjusted financial metrics should not be viewed as an alternative to GAAP. However, in light of our M&A activity, we believe that the use of non-GAAP or adjusted metrics provides investors with a clear view of our current financial results when compared to prior periods. Now, I'd like to turn the call over to Mike Rice, BioLife's Chairman and CEO.

Thanks, Troy, and it's great to have you in the CFO role and on your first earnings call with Rod and me. And Rod, it's just great that you'll be on the team with us for another year or so. Thank you, everyone, for joining our call. After my remarks, Rod will provide an update on key initiatives he is managing, targeting integration and gross margin improvements. Then Troy will present our financials for Q3 and the first nine months of 2021 and speak to another guidance increase we're making for 2021 based on continued strong demand for our biopreservation media products. After that, we'll be glad to take your questions. Turning to Q3 revenue and customer highlights. We sustained our strong momentum this year with top-line revenue of nearly $34 million in the quarter. This was up 200% versus Q3 last year and 8% above Q2 this year. Organic revenue growth was up 37% over Q3 last year, driven by biopreservation media revenue growth of nearly 50% year-over-year. In Q3, we gained at least 213 new customers across our three products and services platforms. And I'll remind you what those are: first, cell processing, which includes biopreservation media and Sexton products; second, our freezers and thaw systems platform, comprised of CBS liquid nitrogen freezers and Stirling mechanical freezers and ThawSTAR systems; and finally, storage and cold chain services, which includes our SciSafe storage services and our evo cold chain management offering. These more than 200 new customers in Q3 compares to 213 in all of 2020 and 183 in Q2 this year. For the first nine months of 2021, we gained nearly 500 new customers, but as noted before, the actual count should be significantly higher and we will report on that after year-end when we get data from our key indirect distribution partners. You might recall that in 2020 for our biopreservation media products alone, two of our largest distributors shipped products to more than 2,300 different end users based on order volumes. So far this year, we expect another stellar year for our direct team and indirect partners in driving much broader adoption of our portfolio of bioproduction tools and services. Cross-selling to capture revenue synergies is a key focus for us, and in the first nine months of this year, more than 30 customers have purchased at least one additional portfolio solution than they were previously using. Note that we also disclosed earlier this year that a leading pharma CDMO is using every portfolio offering, and more recently that we have a multi-point engagement with a top 10 global pharma company that uses our CryoStor biopreservation media, evo cold chain management offering, and SciSafe storage services. We expect to continue to capture revenue synergies by driving broader adoption of our portfolio components at our strategic accounts. Now I will make some qualitative comments about our three revenue platforms and let Troy speak to the overall metrics for each. For cell processing in Q3, we gained 42 new customers and received confirmation that our cell processing media products will be used in at least 24 additional clinical trials for new cell and gene therapies. We estimate that our biopreservation media products have been incorporated into more than 530 customer clinical applications. For biopreservation media, we also remain confident that each customer clinical application, if approved, could generate annual revenue in a range of $500,000 to $2 million, based on the estimated number of doses our customers would manufacture in a year, the volume of our media in each dose in milliliters, and the average selling price per milliliter. To date, our biopreservation media is used in seven approved therapies, and our Sexton cell processing media and vials are used in three approved therapies. For biopreservation media and approved therapies, actual and forecasted annual revenue is supporting the revenue range I just mentioned. With our freezers and thaw systems platform, despite the operational challenges we continue to work through, we gained 162 new customers. In early October, we shipped another high-value, high-margin, high-capacity controlled-rate freezer to a leading allogeneic cell therapy company and anticipate shipping another this quarter. In our final revenue platform, storage and cold chain services, which includes evo cold chain rentals and SciSafe storage services, we gained 26 new customers for the second consecutive quarter: 15 for storage services and 11 for evo. Specific to our storage services platform, we recently announced the opening of our first European bio-repository in Amsterdam. Our opportunities list to potential new storage service customers is long and robust. We're very bullish in how we can grow this business and, as you can imagine, are well into the planning process for where additional facilities will be located so we can capture our growth opportunities. With our evo cold chain management platform, cell and gene therapy companies now have full optionality to access our class-defining offering through our expanded specialty courier partner network that now includes World Courier, Quick International, Patheon, Thermo Fisher, Marken, and Biocair. We're also well engaged in our new product development roadmap for the evo platform and look forward to sharing details when we can, but I can say we're committed to finding the class through innovation, both internal and external. Now I will turn the call over to Rod to give you an update on some of the supply chain and gross margin improvement initiatives he's leading. Rod.

Thanks, Mike. I'd like to start by addressing why I delayed the date of my retirement. The timing was originally based on two things. First, that the Company was on a solid growth trajectory, which I believe is clearly the case and which is demonstrated by the revenue strength we realized in Q3 and continue to see in Q4. The second factor was the full team was in place to manage that growth. Based on Dusty's resignation, the second half of the equation has changed. And given the 20 years that I've been associated with the Company in one form or another, I offered to step in and fill the gap based on my previous experience as COO from late 2019 to earlier this year. In this role, I currently have manufacturing and logistics, customer service, and IT reporting to me. And what's new is the addition of the Stirling and Sexton product lines, and that's where I'll be focusing a significant amount of my time. A key area of attention will be to finish the integration work that has been started, particularly in the area of consolidating the Company's supply chain, with the objective of realizing opportunities for gross margin improvement. In addition, we will continue to build out our companywide customer service organization with the specific goal of adding at least one new service revenue stream in 2022. On the IT side of things, the priority is to work with the existing cross-functional team already in place and continue the deployment of the NetSuite ERP project, which is well underway and on track to be fully implemented across the Company by the end of next year. I'll end my remarks by addressing some operational issues we faced during the third quarter, which resulted in a total charge to cost of goods sold of $4.3 million, or 13% of revenue in Q3. Approximately $4 million of the total was related to two issues with the Stirling ULT product line and was comprised of $1.5 million in purchase price variance charges and $2.5 million in increased warranty and scrap expense. As is the case with many companies operating in today's supply-chain-constrained environment, the Stirling operation realized a significant increase in Q3 PPV charges when compared to prior quarters. A large part of these charges were directly related to an ongoing transition away from a large vendor, which will be completed in the coming months. This transition also resulted in raw material delivery issues, which negatively impacted our actual versus standard labor costs. The warranty and scrap charges are the result of certain defined and contained quality issues, the magnitude of which came to light during the quarter and which fundamentally stem from the 52% year-over-year increase in freezer production. These problems have now been largely addressed through process and design improvements, but the increase in warranty expense reflects the amount necessary to establish an adequate warranty accrual on the balance sheet. To summarize, while we may see some continued issues on the supplier side impacting PPV in Q4, they should be lower. And we fully expect to see improved gross margins in Q4 and then solid expansion during 2022. Now I'd like to turn the call over to Troy Wichterman, our CFO, to recap the quarter's financial results. Troy.

Thanks, Rod. I'll start off with a brief review of our financial results for Q3 2021, and then provide updates to the guidance for the remainder of 2021. Revenue for the third quarter totaled $33.8 million, representing a 200% increase over 2020's third quarter revenue of $11.3 million. Organic revenue increased 37% in Q3 2021 compared to Q3 2020, driven by biopreservation media revenue of $11.1 million, which was up 49%. Revenue from the cell processing platform for Q3 2021 was $11.5 million, which includes our biopreservation media revenue and Sexton cell processing tools. Sexton contributed $425,000 in revenue since our acquisition on September 1st and was in line with our expectations. Revenue from the freezers and thaw systems platform for Q3 2021 was $17.6 million, which includes our CBS, Stirling, and ThawSTAR brands. Revenue from the storage and storage services platform for Q3 2021 was $4.7 million, which includes our evo and SciSafe brands. Revenue for the nine months ended September 30th, 2021 totaled $81.9 million, an increase of 145% over 2020's nine-month revenue of $33.4 million, and organic growth was 34%. Biopreservation media revenue for the first nine months of 2021 increased 31% to $29.7 million. Our adjusted gross margin for the third quarter of 2021 was 28% compared with 57% last year. For the first nine months of 2021, adjusted gross margin was 39% compared to 60% in the same period last year. As Rod stated, we had $4.3 million of unusual cost of sales charges in the quarter. This was primarily related to the Stirling freezer products. Without these charges, our adjusted gross margin for Q3 would have been approximately 40%, which is more in line with our historical range. We believe we will see sequential margin growth throughout the next few quarters. Adjusted operating expenses for Q3 of 2021 totaled $17.4 million compared with $6.8 million in Q3 of 2020. And for the first nine months of 2021, adjusted operating expenses totaled $39.5 million compared with $19.3 million in the first nine months of 2020. The increase in both periods was primarily driven by the absorption of operating costs related to our SciSafe, Stirling and Sexton acquisitions, as well as increased headcount and stock-based compensation expense necessary to support our overall growth objectives. Our adjusted operating loss for the third quarter of 2021 was $8.1 million compared with an operating loss of $359,000 in Q3 2020. Our adjusted operating loss for the first nine months of 2021 totaled $7.5 million compared to adjusted operating income of $547,000 in 2020. Our adjusted net loss for the third quarter of 2021 was $8.3 million or negative $0.19 per share compared with an adjusted net loss of $346,000 or negative $0.02 per share in 2020. For the first nine months of 2021, adjusted net loss was $7.8 million, or negative $0.20 per share, compared with adjusted net income of $606,000 or $0.03 per diluted share in 2020. Adjusted EBITDA for the third quarter of 2021 was negative $2.1 million compared with positive $1.7 million in the third quarter of 2020. For the first nine months of 2021, adjusted EBITDA was positive $4.4 million compared with positive $5.8 million in the same period in 2020. Our cash balance at September 30th was $75.1 million. I'll conclude my remarks with our updated revenue guidance for 2021. Total revenue for 2021 is expected to be in the range of $115 million to $119 million, reflecting year-over-year revenue growth of 139% to 147% and organic growth of 30% to 35%. Cell processing platform revenue is expected to be between $42 million and $43 million, accounting for approximately 37% of total revenue, which includes the contributions of Sexton, which we closed on September 1st. Freezers and thaw systems revenue is expected to be between $57 million and $59 million, accounting for approximately 49% of total revenue. Storage and storage service revenue is expected to be between $16 million and $17 million, accounting for approximately 14% of total revenue. Finally, in terms of our share count, taking into consideration the 530,000 shares we issued in connection with the Sexton transaction, we have 41.6 million shares issued and outstanding and 43.8 million shares on a fully diluted basis. Now, I turn the call back to Mike.

Thanks, Troy. I'd like to summarize two key takeaways from Q3. First, demand for our bioproduction tools and services portfolio is at record levels in each platform. We built a phenomenal customer base, and with the anticipated growth in the cell and gene therapy industry, have the potential to build BioLife into a significantly larger enterprise, and achieve our stated aspirational financial goals. Second, the operational issues we're tackling are not uncommon in growing companies and typical with acquisitions. I'm confident our team will continue to execute well as we further integrate our various teams and steadily improve in our focus areas. Finally, I'm pleased to say that product demand so far in Q4 is very strong, and we're looking forward to sharing our results for Q4 and the full year of 2021. Now I'll turn the call back over to the Operator to take your questions. Eli?

Thank you, Mike. For the question-and-answer session, if you would like to ask a question, please press star one on your telephone. For the first question we have Max Masucci from Cowen and Company. Your line is open.

Hi, thanks for taking the questions.

Hi, Max.

So Rod, related to the supply chain disruption, it sounds like the issue is more on the inputs side of things. Can you just give us a bit more detail around the issue that came about with the specific vendor area? Which raw materials were the components if you could share that and then whether you expect to reconcile the issue with the existing vendor or to seek an alternative?

Yeah, no, it's a good question, Max, but I'm going to be a little bit circumspect since we still have a relationship with this vendor. And so, really it's fundamentally driven by the fact that, a couple of months back we made a decision to transition from this vendor to another vendor for a variety of reasons. That transition has not gone as smoothly as we had hoped. There have been a lot of unexpected surcharges involved in the transition. In addition, the supply has not been consistent in terms of delivery, which has had a negative impact on our actual versus standard labor costs. It's something that I think is clearly transitory because the relationship will be fully transitioned, and we've been transitioning different parts over the last several months. We probably have another month or two of that activity. We expect the impact to come down and then in 2022 could be eliminated completely.

Great. And then just, as we think about the implied Q4 results, just looking at the raised guidance and netted against the beat versus our expectations in Q3, we just wanted to get your latest view on the embedded assumptions for Stirling for the core business. And then also new customer wins versus same-customer growth.

So I'll make a comment and then turn it over to Mike. But, you know, Max, we don't split out the particular product lines within a platform, so we've been pretty clear in terms of what we expect the platforms to do in the guidance that Troy laid out. In terms of customer wins, I'll let Mike address that piece.

Good question, Max. Well, we're winning in both categories. We're having success with new groups adopting one or more platforms, and also going deeper within our key strategic accounts. We do have some concentration, at least we did with media, and I'm sure to some degree that carries over to the other platforms. The way I'd characterize this is you've obviously seen from many other life sciences tools companies this quarter and even the quarter before, the demand is really remarkable, and our proprietary products are doing really well. Everything else in the platform portfolio is doing really well. So it's a really frothy time now based on level of investment and how that investment is translating into spend here. It's both new customers and expansion with existing customers, and we're very bullish.

Absolutely makes sense and if I could squeeze one more in, if we look at the past two years, your customer base has grown, your product portfolio's evolved. With that in mind, how do you view the opportunity to expand from within and cross-sell the broader portfolio once you really get your foot in the door? Are there any products being cross-sold effectively? It seems like there were some positive data points in the prepared remarks.

Most definitely, Max, and that's a key focus area for the management team, particularly in our sales and marketing functional groups. We have really high expectations about our ability to capture those revenue synergies by seeing these cross-selling opportunities, leveraging relationships, and finding homes for more parts of the portfolio. Being back on site and engaging with decision-makers has helped. I have to say the integrated freezer sales team is doing a great job and we've got a lot going on to integrate SciSafe storage services and the evo platform. The good news is there are tens of thousands of prospects, and it's a large enough universe for us to get our arms around through both our direct team and our distribution partners. It's great to see the way that we're leveraging relationships and being introduced to other folks, so yes, it's a key focus area.

Great. Thanks for taking the questions.

You're welcome, Max.

Next we have Jacob Johnson from Stephens. Your line is open.

Hey, good afternoon. Rod, I'd say it's good to have you back, but I guess you never left. Maybe just one follow-up on the Stirling operational stuff. Has this impacted your relationship with customers? The perception of the brand? Or more simply, did any of these issues impact your outlook for revenues at Stirling?

Yeah, really good question, Jacob. As you can imagine, for competitive reasons I'll be fairly brief. Every time a customer owns a freezer and it doesn't work or doesn't work as it is supposed to, that's a bad experience and we don't like that, so we're all over it to try to reduce those incidents and get things to return to a normal expected warranty and service level. So far so good, but we're on it because we understand how customer loyalty works and customers have other options. We're hyper-focused on improving reliability, service, and the customer experience.

Thanks for that, Mike. Then just checking on the freezer side and kind of the bigger-picture question that I get from investors. You're seeing strong demand for your freezers, we're seeing it elsewhere too. Can you just talk about the demand for freezers you're seeing? Is this new customers coming to you? Is it existing customers scaling up or out? Is this to prepare for commercial product launches, or just for research? Any color you can give on the broader demand backdrop for the freezers side of the business?

I can give a little bit. It's all of the above and depends on the segment. Within cell and gene therapy, clearly the high-capacity controlled-rate freezer from our CBS LN2 line has strong appeal. Those are high-value units in the roughly $500,000 range with good margins. In the broader biopharma market, there is demand for LN2 storage, but even more demand for mechanical freezers. In that space you have academia, government, and corporate customers, with strong demand among all those segments. So, we are benefiting from a broad market tailwind that's lifting many participants.

I'll just sneak in one more. Nice quarter in the services business. On the build-out at SciSafe, you added the Amsterdam facility. Can you talk broadly about the footprint of SciSafe today? And if you look ahead, are there other regions of interest—I'd suspect Asia-Pacific might be one to come to mind?

So today there are five facilities. Our selection criteria for locations are where clusters of biotech and cell and gene therapy companies exist that would need outsourced storage. Each cluster has a certain footprint and competitive dynamics. We're focused on the U.S. and international markets where there's customer demand. Rod can add color, but we have a good handle on costs to turn up a facility in terms of capex and timing. It's an attractive opportunity and companies are coming to us because they see differentiation in quality and engagement. We're bullish about growing the business.

Great. I'll leave it there. Thanks for taking the questions, Mike.

Sure.

Next we have Paul Knight from KeyBanc. Your line is open.

Hi, Mike. More references in the industry about increasing importance of media in the cell and gene therapy market. Are you seeing your customers' per-customer sales increase, or are they moving into Phase II, Phase III? What are you seeing on per-customer metrics on the media side of the business?

Most definitely, Paul. As customers move into later-stage trials, and as we get embedded in their processes, per-customer spend increases. Our relationships are sticky and our media often becomes part of follow-on development projects. That revenue journey is repeated with many customers, and we see that in projects progressing through clinical trials.

If an approved therapy doesn't use your product, would they have had to go through a lot of bridging or safety studies to switch? For example, with Kymriah and Novartis, would switching to CryoStor require significant additional studies?

I think there would have been. Speaking specifically of Kymriah from Novartis, which uses a home‑brew preservation cocktail that came from the UPenn process and which Novartis scaled up in-house, it's always the balance. If a company switched to CryoStor, they could improve viability and recovery after preservation. But their assessment of the lift to do that, particularly as it relates to whether the U.S. agency might mandate bridging studies or additional testing, has often led companies to decide not to switch midstream. However, Novartis remains a strategic customer on media and we're involved in many other projects and clinical trials with them.

Okay. And then on integration of Stirling with CBS and other products, is Stirling presence more in, say, the mid-market and CBS more in the high-end? Any integration issues between the platforms?

Not integration issues from our side, Paul, but definite opportunities. We can now offer freezers that cover the complete temperature continuum. If a customer needs the coldest-of-the-cold, minus 150 or colder with LN2, we've got it. If they need mechanical freezers in the minus-20 to minus-80 range, Stirling covers that. We're now able to offer a broader set of solutions across temperature needs.

Paul, on the manufacturing and end-customer service side, the integration work really revolves around consolidating the supply chain so we can leverage certain components—both electronic and metal—that both platforms use.

Okay. And then last on COVID, I know Stirling had some COVID benefit. What's the direction of COVID-related demand right now?

It's actually coming down. Year-to-date COVID-related demand is around 20%, but in Q3 it was down in the 15% to 18% range. We expect that to come down further in Q4 and maybe normalize next year. It may persist longer than originally expected, so maybe around 10% next year.

Next we have Yuan Zhi from B. Riley Securities. Your line is open.

Thank you for taking our questions and congratulations on another strong quarter. A while ago you mentioned a top 10 big pharma selected a portfolio of services from BioLife to support its regulatory application. To the extent you can share, can you provide more color about your history with this company, how the relationship has evolved over time, and what key factors differentiate you from other competitors?

That's a great question. This relationship is very long term. It goes back to the early days when I joined the Company nearly 16 years ago on the media side. They evaluated CryoStor for a number of early phase cell therapy candidates. The relationship has ebbed and flowed as candidate programs progressed. Later, they evaluated and adopted the evo platform to transport CAR T-cell therapies, which was a joint effort with our select courier partners. Concurrently, the SciSafe team engaged to provide storage services. Our relationship with this customer is a true partnership and we've continued to go deeper, increasing the breadth of services and revenues as we offer more capabilities. It's a mutually beneficial long-term relationship.

Thanks for the helpful color. Maybe can you provide an overview of your rental business, like which business segment contains this rental business and whether it's structured like an upgrade or multi-year rental model?

Sure. The evo cold chain management business is reported in our storage and cold chain services platform. We don't break out the revenue of each subcomponent. The revenue is based on the rental of containers to specialty carriers who then use those containers to move customers' temperature-sensitive biologic material from point A to point B.

Next we have Thomas Flaten from Lake Street Capital Markets. Your line is open.

Thanks for taking the questions and congrats, Troy, on the position. Just a quick one on the gross margins. If we adjust out the charges to get to roughly 40%, was that a bit below where you guys had anticipated margins being for the quarter?

I think it was below, and part of that relates to stock-based compensation that was issued to a couple of hundred people at the Stirling facility in Q3. That was not in place in Q2. If you look at Q2 as a benchmark or baseline, a significant part of the delta between Q2 and Q3 has to do with that stock comp piece.

I'd like to add that we actually did stock compensation grants for employees throughout the Company in Q3. So that's part of why you see a drop in adjusted gross margin.

Got it. And switching gears, with Dusty's resignation and Rod delaying retirement, how do you think about building a bench of capable leaders for the future as the Company grows in size and complexity? I assume you'll continue to be acquisitive and will need leadership depth. Curious to get your thoughts in light of recent announcements.

That's a good question, Thomas. Troy's promotion has been in the works for some time and is part of our planned succession. As it relates to the COO role, there are a couple of internal candidates we will evaluate over the next year. It's likely that one of those individuals could step up into a broader operations role, possibly early 2023 when I'm ready to formally retire. That's the plan.

Next we have Suraj Kalia from Oppenheimer and Company. Your line is open.

Good afternoon, Mike, Rod, Troy. Can you hear me all right?

Yes. Hi, Suraj.

Mike, one multi-part question for you and one I'll pose to either Rod or Troy. Mike, you mentioned 500 new customers for the first nine months. How many were de novo versus pull-through from acquisitions?

None were inherited from acquisitions, Suraj. They were all de novo.

Perfect. Given the number of tools in your toolbox now, what's the average time it's taking to close a new account compared to a year or two ago? Also, what's the trend for average revenues per customer? And Rod or Troy, on the broader level, where are you in normalizing corporate gross margins? There was a dip with Stirling; what initiatives are you taking and what's the timeline for normalization?

It really depends on the platform. For media, where much of the business is direct and we've built strong brand awareness, the sales cycle has compressed over the last several years. Lead generation is increasingly inbound because customers understand what we do and our products are used more widely, so that shortens the sales cycle. On the freezer side, because we sell through distributors and are transitioning to a more integrated direct approach, the timing depends on segment and seasonality, such as academic or government purchasing patterns. Our sellers are trained to include the full portfolio in conversations, to identify cross-sell opportunities, and to compress the sales cycle across platforms. We expect that to continue improving.

Suraj, in terms of normalized gross margin blended for the full Company on an adjusted basis, it's running around 40% to 42%, so that's sort of the floor. The issues we faced in Q3 are fundamentally transitory. We may have some residual impact in Q4, but as you look into 2022 we have a stated multi-year gross margin target of over 50%. You're really looking at expanding gross margin by about 10 percentage points over that period. Part of that will come from actions we can take relatively quickly in 2022 around manufacturing and purchasing efficiencies, and the balance will come from leveraging higher revenue levels and new product introductions over the three- to four-year period.

Thank you.

There are no further questions at this time. That concludes the Q&A session. I will now turn the call back to Mike Rice, Chairman and Chief Executive Officer, for closing remarks.

Thanks, Eli. Thanks again, everyone, for your interest in BioLife. We're in a great space with a nearly 500-person-strong team of folks dedicated to quality, customers, and each other. Our success is only made possible by their commitment and teamwork. We're looking forward to closing Q4 and 2021 with demonstrated execution and strong results. We appreciate your support and wish you a good evening. Good night.

This concludes today's conference call. Thank you all for participating. Enjoy the rest of your day, keep safe, and you may now disconnect.