CareCloud, Inc. Q2 FY2022 Earnings Call

Welcome to CareCloud's Second Quarter 2022 Conference Call. During the presentation all participants will be in a listen-only mode. Afterwards we will conduct a question-and-answer session. As a reminder, today's conference is being recorded. Now I'd like to turn the conference over to Kim Blanche, CareCloud's General Counsel. Ms. Blanche, the floor is yours.

Good morning, everyone. Welcome to the CareCloud's second quarter 2022 conference call. On today's call are Mahmud Haq, our Founder and Chief Executive Officer, President, and Director; and Bill Korn, our Chief Financial Officer. Before we begin, I would like to remind you that certain statements made during this conference call are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. All statements other than statements of historical fact made during this conference call are forward-looking statements, including, without limitation, statements regarding our expectations and guidance for future financial and operational performance, expected growth, business outlook, and potential organic growth and acquisitions. Forward-looking statements may sometimes be identified with words such as will, may, expect, plan, anticipate, upcoming, believe, estimate, or similar terminology and the negative of these terms. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. These statements reflect our opinions only as of the date of this presentation, and we undertake no obligations to revise these forward-looking statements in light of new information or future events. Please refer to our press release and our reports filed with the Securities and Exchange Commission where you will find a more comprehensive discussion of our performance and factors that could cause actual results to differ materially from these forward-looking statements. For those who dialed into the call by telephone, you may want to download our second quarter 2022 earnings presentation. Please visit our Investor Relations site, ir.carecloud.com, scroll down to News and Events, click on second quarter 2022 results conference call and download the earnings presentation. Finally, on today's call, we may refer to certain non-GAAP financial measures. Please refer to today's press release announcing our second quarter 2022 results for a reconciliation of these non-GAAP performance measures to our GAAP financial results. And with that said, I'll now turn the call over to our CEO, Hadi Chaudhry. Hadi?

Thank you, Kim, and thanks to all of you for joining us for our second quarter earnings call. On today's call, I would like to discuss a deeper dive into CareCloud's record bookings that are a direct result of our newly launched products and heightened focus on organic growth; our soon-to-be-launched products for remote monitoring; a revision to our outlook that is attributable solely to a delay in our acquisition playbook; and finally, an update on our sales pipeline. To start with some highlights of the quarter, annualized recurring bookings of the new contracts of $5.5 million, excluding one-time fees, were the highest in the history of the company, almost double what we signed last year and compares to $1.6 million in the first quarter of 2022. Revenue of $37.2 million was up 9% year-over-year. Adjusted EBITDA of $7 million increased 24% over the second quarter of last year. Adjusted net income of $5.6 million increased 23% over the prior year period. Now taking a closer look at bookings, we are especially pleased with the results this quarter, which are directly correlated with our efforts to drive the organic growth that we have been speaking about for the last couple of quarters. As we have discussed, our growth strategy in recent quarters has evolved from a pure consolidation playbook to one that strikes the balance of accretive acquisitions complemented by organic growth achieved through investment in sales and marketing. As mentioned, bookings from recurring sources were $5.5 million, up 97% year-over-year and a record for CareCloud. Additionally, nonrecurring professional services bookings of $6.7 million increased more than three times that of the second quarter of 2021, due largely to the acquisition of medSR that was completed late in the second quarter of last year. Additionally, while we want to stop short of giving bookings guidance, we have a high level of confidence that third quarter recurring bookings will meet or exceed those of the second quarter and may represent another record for the company. Importantly, a meaningful component of the bookings were derived from contracts for our newly introduced CareCloud Wellness that launched last quarter. Specifically, greater than 50% of non-professional services bookings came from our new Wellness product, demonstrating terrific early reception to this solution. As a refresher, Wellness, which launched in late April, is an effective way for our practices to support the treatment and well-being of the chronically ill patients that they serve. Additionally, it is a great source of referral revenue with little to no upfront cost. Wellness' early results demonstrate that its value is clearly resonating with our physician base. While it is not the norm to get too granular around our booking metrics, we think it's important to share this information with you as it ties directly to the conversion of the robust pipeline activity that we provided a lot of details around last quarter. Most of all, it shows that our increased investment in product innovation and sales and marketing efforts are bearing fruit. Given the sensitivity around bookings and volatility by quarter, please note that investors should not expect us to provide bookings metrics every quarter. We are pleased to be launching our forthcoming remote patient monitoring program this quarter. Remote patient monitoring, or RPM for short, is a digital health solution leveraging the Internet of Things, which tracks and monitors chronic conditions and potential emergent situations close to real time. CareCloud's RPM solutions, metrics like blood pressure, glucose measurements, heart rate or pulse, weight, and sleep changes in the elderly as well as fetal monitoring can all be instantly transmitted from devices to patients' EHR, capturing a longitudinal view of the patient across the care continuum. We plan to offer a full service to the physician, providing care managers, supplying the device, and helping to populate the EHR with data transmitted from the cloud. At a minimum, our solution promotes connectivity to healthcare data whenever and wherever it resides and, at best, can serve to preempt critical situations, improving outcomes and reducing costs in the process. We are excited to continue along the path of innovation by introducing this revolutionary digital health solution to the market. We sized the total market opportunity at over $100 billion over the next few years. Drilling down to the medical practice level, we believe a typical practice on average can drive incremental revenue of up to one third annually through a combination of chronic care management and monitoring, of which we can capture a meaningful percentage. We note also that the timing of our RPM product launch may coincide with CMS's favorable treatment towards the proactive management of chronic care conditions. CMS increased reimbursement for chronic care management in 2022. We believe that following additional work by the device providers inclusive of proof points regarding adoption and improvement of outcomes, CMS may increase fees for remote monitoring in future years. These favorable rates may serve to incentivize providers to do more monitoring. With respect to our acquisition strategy, as has been the case for some time, we strive to balance accretive acquisitions that integrate well with our cloud platform and deliver value to our shareholders with a reasonable level of organic growth stemming from new customers, same-store sales, and product innovation. While we are happily exceeding expectations with respect to the organic component of our strategy, our acquisition playbook took a pause through the first half of 2022. As we outlined in our outlook in March, our 2022 guidance always contemplated a small amount of acquired growth that would be required to hit our revenue and EBITDA targets. While the acquisition pipeline remains robust and we continue to evaluate a number of opportunities, none felt compelling enough to execute from either an accretive or strategic standpoint. For one thing, private valuation expectations remained lofty despite the slide in the public company valuations year-to-date. In a recent industry report, it was noted that healthcare tech M&A was down in the first half of 2022 as acquirers struggled with valuation disconnect driven by the big step-ups resulting in lofty post-money valuations of the last couple of years. Given that our criteria for doing a deal requires us to target an ROI over three to four years, this fiscal discipline and selectivity left us with a gap to meeting our full-year outlook. Meanwhile, we are hopeful that private company values stabilize in the back half of the year. In setting our guidance earlier in the year, we incorporated the anticipated revenue loss from two customers that came to us as part of a prior acquisition. At the time of the acquisition, the client was in the process of merging their operations with another health system, each of whom had a different EHR mandate from whatever clients were utilizing. As such, we believe there was a risk that the client may churn, and while this potential attrition was factored into our guidance, our expectation was to make up the revenue with acquired growth, which is now likely pushed out to 2023. Accordingly, we now expect revenue in the range of $140 million to $143 million versus our prior expectations of $150 million to $155 million due to an expected shortfall in acquired revenue. In doing so, we are reducing our EBITDA guidance to a range of $22 million to $24 million from $24 million to $26 million previously. I want to reiterate that the fundamentals of our business remain strong, as evidenced by our record bookings. The absence of any tuck-in acquisition is the sole driver of the guidance reduction that Bill will expand upon. Before I turn it over to Bill for his financial review, I would like to comment on the health of our sales and pipeline. We mentioned a fair amount of detail last quarter about, however, increased investment in sales and marketing and product innovation would lead to an uptick in organic growth. And we are seeing early success in both the funnel of pipeline opportunities as well as bookings. We are pleased that our pipeline at the end of the second quarter was $40 million, a significant increase above the $25 million we had in the prior year. Moreover, the incremental pipeline build or creation was $21 million, up 50% year-over-year. Average contract value or deal size increased 42% over the second quarter of last year, which is suggestive of two things: larger customers in the pipeline and a broader group of products and services being delivered across our platform. For example, enterprise accounts were 64% of the pipeline, while small accounts comprised of 16% and mid-sized practices were the remaining 20%. Further, as an illustration of increased product density, our teams are actively working with clients representing an estimated $50 million in annualized revenue from CareCloud Wellness, which we introduced to the market just last quarter. All told, though we fell shy of our required revenue targets through the first half, the health of our pipeline, our sales motion, and booking strength has never been better in the history of our company. To summarize, we delivered record bookings in the second quarter with an expectation for as good, if not better, in the third quarter. Year-to-date, we have announced innovative digital health solutions, inclusive of wellness for chronic care management and the soon-to-be-launched remote patient monitoring solution. Our sales and marketing efforts continue to ramp, and early results are encouraging, as evidenced by CareCloud's record bookings. We continue to work through an active acquisition pipeline with the goal of completing one or more deals in the back half of this year or early 2023. We look forward to reporting our progress to you as we navigate through the rest of 2022. Now I will turn the call over to Bill for a closer look at our second quarter results. Bill?

Thank you, Hadi, and thanks to everyone for joining us on the call today to discuss our second quarter results. The second quarter was in line with our expectations. On today's call, I'll review the quarterly and first half results and discuss our guidance revision in more detail. In the second quarter, we generated recurring bookings that will produce annual recurring revenue of $5.5 million, almost double what we did in the second quarter last year. As Hadi noted, we do not plan to provide bookings on a quarterly basis going forward as they can be lumpy. But given our strong second quarter results, we thought you would appreciate the insight today. It is evident that our organic growth initiatives are starting to take hold as our newer products represent a significant portion of new recurring bookings. Our second quarter revenue was $37.2 million, representing an increase of $3.2 million or 9% year-over-year. Our GAAP net income was positive at $2.7 million compared to a net income of $227,000 last year. This represents the fourth quarter in a row where we've delivered more than $1 million in positive GAAP net income. Our GAAP net loss per share was $0.07 based on the net loss attributable to common shareholders, which takes into account the preferred stock dividends declared during the quarter. Our non-GAAP adjusted net income was $5.6 million, an increase of 23% year-over-year. Adjusted net income per share was $0.37 compared to $0.31 per share for the year-ago quarter. Adjusted EBITDA of $7 million increased 24% year-over-year and set a new record. Our adjusted EBITDA margin of 19% increased 220 basis points compared to last year and increased 540 basis points sequentially to the highest level since we went public in 2014 as we continued to reduce costs and drive further efficiencies from our previous acquisitions. Regarding our results for the first half, revenue for the first six months of 2022 was $72.6 million, an increase of 14% compared to $63.8 million in the first six months of 2021, with 85% generated from our technology-enabled solutions. For the first six months of 2022, our GAAP net income was $0.3 million compared to a GAAP net loss of $2.2 million in the first six months of 2021. This equates to a loss of $0.26 per share after subtracting the preferred share dividends. Our non-GAAP adjusted net income for the first six months of 2022 was $9.1 million or $0.60 per share. During the first half of 2022, our adjusted EBITDA was $11.7 million, an increase of $2.4 million or 26% from $9.3 million in the same period last year. Now, I will turn to the balance sheet and cash flow. We ended the second quarter with $10.2 million of cash and equivalents and generated $5 million of cash flow from operations during the quarter and $8.1 million year-to-date. As Hadi mentioned, we are adjusting our guidance to reflect the fact that we have not made any acquisitions yet this year. Our original guidance for the year assumed we would complete one or two tuck-in acquisitions during the year, contributing approximately $13 million of revenue, which would have offset the revenue from the two customer transitions that Hadi mentioned. Though we factored in the wind down of this revenue in our guidance, we expected to replenish the loss of these customers with acquired revenues. However, we have not yet found a deal on terms we believe provided a compelling return to shareholders. Given that there are just five months left in the year and the current disequilibrium between public and private valuations, we think it's unlikely that any potential acquisition will meet the assumptions baked into our original outlook. We are always looking for game-changing deals, and we will let investors know when we have something compelling to talk about. But we have removed any impact from our 2022 guidance. With that as a backdrop, we now expect 2022 revenue to be in the range of $140 million to $143 million and adjusted EBITDA to be in the range of $22 million to $24 million. Going into the second half of 2022, I'm pleased that our robust product solutions are resonating in the market, and our organic growth strategy is starting to take hold. I look forward to keeping you posted on our progress in the remainder of the year. With that, I'll turn the call over to Mahmud for his closing remarks.

Thank you, Bill. I would like to thank our employees, customers, and shareholders for their continued support. As Hadi mentioned, we are very pleased with the expansion of our platform, organic growth initiatives, and resulting booking trends. We look forward to continuing to update you on our progress throughout the year. Thank you.

And our first question comes from Mr. Cohen with Ladenburg. Please proceed with your question.

Hi, Hadi, Bill, and Mahmud. Can you hear me okay?

Yes, we can, good morning.

Wonderful. A couple of questions, I guess, firstly, on the back half guide and Hadi's comments about the third quarter as good or not better than the second quarter. Could you talk about the cadence of the back half for modeling purposes? It looks like probably $35 million or $35.5 million for Q3 and Q4. Any specific reading into the cadence on the back half from your comments?

Thank you for the question, Jeff. Let me get started from the booking standpoint, the organic sales strategy standpoint, and I'll turn it over to Bill for the back of the year from the financial aspect. As we mentioned during the script, that second quarter, finally, we were able to hit over record booking numbers. On the recurring revenue side, it's $5.5 million and with the one-time fee, it was about $5.7 million. One third of that was coming from a recently launched product of Wellness. So based on these additional, on the Wellness product and our upcoming remote patient monitoring launch, which we will provide the details later in this third quarter. And also with the robust pipeline, as we are actively currently working with a potential possible opportunity of client generating which could generate about $50 million in annualized revenue. Of course, we cannot close all of it, but even if we are able to close, let's say, half of it over the last one year to one and a half years, that will be a good number. So with this background, I think we are very optimistic and the visibility that we have at the level of the deals we are in negotiation phase has us confident that the third quarter is going to be either same or better than the second quarter in terms of the booking, and the fourth quarter, optimistically, could even be better than the third quarter because we anticipate some results from the remote patient monitoring initiative as well.

Okay, I got it. It sounds like third quarter better, but yet that falls outside of your guide of up to $143 million?

So Jeff, I guess I would use our guidance for total revenue, and there's sort of two factors going into the cadence. As you know, normally for us, the third quarter is our biggest quarter. However, we're getting more traction from new organic customers. And as more customers are signing up, somebody who signs up today and goes live a month from now, well, you're going to get a fraction of the quarter during the third quarter, and you'll get a full quarter during Q4. So I think if I were you, I would actually spread it, and contrary to normal years, actually put a little bit more into the fourth quarter and a little bit less in the third quarter for 2022.

Okay, I got it. And then second from our side, could you talk a little bit about CareCloud Force? I didn't hear any mention specific of that and how it's doing?

Yes, that's great. And I'll turn the floor over to Karl Johnson, who is our President of the Force growth initiative. Yes, we continue to see more and more traction towards the Force. If we talk about our second quarter bookings, about 20% to 25% was coming from the Force bookings that we have. We continue to see more and more of the increase in our pipeline for the Force, and we are also in some active conversations with some really large opportunities from the Force standpoint. With that backdrop and background, I'll turn to Karl. Would you like to add some more?

Yes, absolutely. Thank you, Hadi. Certainly, what we've seen is continued difficulties by hospitals and other large service organizations in finding employees. And I would go on to say that that's not just a U.S. problem; we've also seen that offshore. So we've been very pleased with the revenues, as Hadi mentioned. From Force, the new sales were 25%, which is up from a year ago of about 15%. It is the second quarter in a row that it's been in that range. The pipeline with the deals we mentioned, two very substantial deals that are in final stages of legal review would certainly keep us in that same range of percentage of sales. So it's really looking very optimistic; it's really kind of morphed into the core of what we're doing, and we continue to push forward on new growth.

Okay, perfect. That does it for us. Thanks for taking the questions.

Thanks, Jeff.

Our next question comes from Mr. Wiesenberger with B. Riley Securities. Please proceed with your question.

Thanks, good morning. Appreciate you taking the questions. I just wanted to follow up on a comment that was just made about tight labor market conditions domestically, and then I think internationally was said. Does that mean that you are potentially providing some of your services to international customers? Is that a change or expansion from any kind of previous scope of work?

Yes, sure. Please go ahead, Karl.

What I was talking about is the services, the labor services, the workforce extension we're providing is to U.S.-based customers exclusively. Many of those customers are used to utilizing offshore resources, which, with the pandemic and other challenges, have also been tight.

Got it, understood, appreciate that. In the current environment, are you noticing any changes in how your customers are utilizing partners with offshore resources? And does any potential shift in your customers' preferences create new opportunities for the future?

Yes, absolutely, I would say you're spot on there. If we look at the bookings for Q2, a significant share of those bookings were from organizations that had immense challenges in using offshore resources in the past. Because of the pressure that they've had to get labor in the U.S., they have not been able to do that and have then turned to offshore resources. So it certainly has opened up some new opportunities for us.

Got it, appreciate that. And then, as you're going to market with these expanded offerings, can you just talk about the value proposition you're leading with and have you had to change the messaging at all or adapt your pricing strategy? Do you anticipate needing to do that going forward to drive accelerated adoption?

Great question, Marc. Our core offering remains the same. But if you think about it, with the future of healthcare, as more and more of the industry is moving towards digital health, telemedicine, or more proactive health management models, there has been a significant push from the CMS side on chronic care management. We believe that remote patient monitoring is going to gain a lot more traction. With the advancements in wearable devices, it will become easier for the vendors to collect data proactively from patient symptoms and then alert providers. So we have started to step into the next generation initiatives. Even within our existing client base, we have seen tremendous excitement. We have launched the chronic care management to our existing clients in response to this opportunity. These new products have become part of our overall offering and there exists a comprehensive pricing model that is somewhat different from our other services. Yes, these services come with higher revenue models because, for remote patient monitoring, the devices involved will be reimbursed by Medicare.

Thank you for the detailed information. I have a couple more questions. I would like to know about the medSR activity and the potential for converting project-based revenues into recurring revenue. Additionally, as you consider the economy and the possibility of it worsening in the latter half of the year or into early next year, how should we view the segments of your business that could be most affected, particularly regarding elective procedures and discretionary spending by patients? Thank you.

Thank you, Marc. In response to your first question, before we acquired medSR, their revenue from RCM was about $1 million a year prior to the acquisition. This year, we have already closed more than double that amount, whether from upsell RCM deals or through CareCloud Force. We are starting to see positive results, which is reflected in our increased bookings, driven by several factors including support from medSR's upsell opportunities, our core technology, services, and new product launches. We are seeing an increase in sales as a result of medSR's influence. For your second question, from medSR's perspective, their revenue is more project-based, focusing on consultancy and health system implementation and configuration, which is expected to remain steady. We do not anticipate any impact on that revenue. Regarding elective surgeries and patient discretionary spending, although we experienced some downturns during COVID, the backlog is now recovering. In the near future, we do not foresee any impact from either of these factors.

Thank you very much.

Our next question comes from Mr. Klee with Maxim Group. Please proceed.

Yes, good morning. Just following up on Remote Care and Well Health. Just to understand it a little better, when you talked about launching remote patient monitoring this quarter, is this new from your Wellness offering in addition to that? And then you mentioned also some new CMS going to have some new rates, can you go into a little more detail on that also? Thank you.

Good morning and thank you for the question. There is a slight difference; in the overall context, whether we talk about chronic care management or remote patient monitoring, both are aimed at digital health and preventative health management. In chronic care, patients with one or more chronic conditions are being proactively managed with the help of caregivers who connect with the patient, review their medical records, and talk to the patient for a certain number of minutes each month, guiding them on what actions to take. For example, for diabetic patients, this can involve a caregiver discussing diet and medication changes based on the patient's results. This chronic care management approach is reimbursable by CMS under their guidelines. This will reduce hospitalization rates, and we have started to observe changes in those rates. The subsequent level is remote patient monitoring, which involves using devices to capture health metrics and transmit that data to EHR for further analysis. CMS increased the rate for chronic care management in 2022, almost doubling certain procedure reimbursements. For remote patient monitoring, we anticipate future reimbursement increases to attract more patient adoption.

Thank you. My last question has to do with churn. What should we consider as normalized churn? If you achieved $5.5 million in bookings, that translates to approximately $22 million annually. If we account for half of that as revenue, it would be $11 million, and dividing that by around $140 million of revenue suggests about 7% organic growth, but that does not factor in churn. So, what should we estimate for normalized churn to calculate net organic growth? Thank you.

Thank you. Great question. If we look at the last three years, excluding the two outliers I mentioned, our 2020 churn was about 10%, which we highlighted. In 2021, we improved it down to about 8%. For 2022, we are currently on track to hit somewhere between 8% to 9%. In this industry, anything around 1% a month is considered the norm. It seems we have been doing better than that on a month-to-month basis for the last few years, and it is continuously improving. The same goes for organic growth; over the last few years, we have mostly focused on acquisition-driven growth, but we have seen significant results from our organic growth activities, boosting our second quarter bookings. Expectations for the third and fourth quarter are also optimistic based on this continued trajectory.

That’s really helpful. Thank you so much.

Great, thank you.

Our next question comes from Mr. Larsen with BTIG. Please proceed.

Hi, with CMS' proposed physician fee schedule, they talk a lot about shifting everybody into value-based care, and all of the major health plans are talking about digital-first products that have value-based care wrapped around them. So with this Wellness solution and the remote patient monitoring solution, first of all, with that $5.5 million in bookings, over what time period is that going to get recognized? Can we think about that on an annual basis? And then, secondly, can you give a sense for what the in-sell potential is into your existing customers? If every one of your existing clients purchased the Wellness platform, what would that total dollar revenue potential be?

Thanks, David, for the question. Yes, you're right; we are seeing that shift in the CMS structure. Regarding the revenue ramp-up standpoint, for small practices, we typically start recognizing revenue within 30 to 60 days for 1 to 5 practices. For mid-sized practices with up to 25 providers, it could be somewhere between three to six months. For larger enterprise clients, it could range between six months to close to a year. The average comes out to about six months. For Wellness, we do not have substantial data since it just launched, but already we have made live clients that could generate about $600,000 in annual recurring revenue from the bookings we had last quarter. If every single existing client signed up for Wellness, we estimate a potential of roughly $50 million in annualized recurring revenue. For remote patient monitoring, the potential could be even greater.

Great, thanks very much. Then, regarding the Wellness solution, can you talk a little bit about your costs? Are you paying those providers on a per-hour basis so that the revenue is matched with the cost, or are those sort of full-time salaries that you're covering?

Another great question, thank you. One, the devices will be provided through our practices to the patients. Some devices will be FDA-approved and reimbursed by Medicare. The second component is, of course, our technology, and finally, the care managers. Care managers may be full-time employees or on a contract basis, depending on the needs of the practice. We ensure the practices receive a comprehensive solution, devices, platform, revenue cycle, and caregivers. So we will compensate those care managers, and that will be part of the overall pricing package for the client.

Great, thanks very much. Appreciate it.

Great, thank you.

Our next question comes from Mr. Dede with H.C. Wainwright. Please proceed.

Hi, thanks. Hadi, just real quick back on the care manager part of the Wellness solution. I understand that you'll be bringing the First Touch, but I'm just wondering if those people are medical professionals or just relationship managers, and where are you in building your staff to support that activity?

Good morning, Kevin, good question. It's a combination, Kevin. There could be nurse practitioners under the supervision of a doctor or relationship managers under the supervision of nurse practitioners. CMS has clear guidelines that these care managers must comply with. Some external support may be utilized if needed. We already have that staff available up and running, and that's why I mentioned that already five clients have gone live, and we have started taking care of the chronic conditions of the patients.

Okay, thanks, Hadi. The $40 million pipeline, I know you've talked to this a little bit, but could you review how long you think it will take to convert it all? Is it solid business or feedback from the sales on prospective business?

Great. The $40 million that we are talking about has already gone through the prospecting phase. Initial connections have been made, so we know that we are at some stage of active conversations. Not all of them can be converted, but as our organic growth engine matures, our initial conversion rates have improved. If we achieve the $5.5 million in quarterly bookings as we did last time, we believe that the momentum will continue into the third quarter, and we expect the same or better for subsequent quarters.

Okay, Hadi, thank you very much for the additional color. Appreciate it.

Thank you, Kevin.

We'd like to thank everyone who has joined us today. We appreciate your interest in us as a company and your participation on today's call. We look forward to speaking with you again next quarter. Thank you all, and have a great day.

Thank you, everyone. Thanks, bye-bye.

That does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.