Green Dot Corp Q1 FY2022 Earnings Call

Good afternoon and welcome to the Green Dot Corp. First Quarter 2022 Earnings Conference Call. This event is being recorded. I would now like to turn the conference over to Tim Willi, Senior Vice President, Investor Relations and Corporate Development. Please go ahead.

Thank you and good afternoon, everyone. Today, we are discussing Green Dot's first quarter 2022 financial and operating results. Following our remarks, we'll open the call for questions. Our most recent earnings release that accompanies this call and webcast can be found at ir.greendot.com. As a reminder, our comments may include forward-looking statements and expectations regarding future results and performance. Please refer to the cautionary language in the earnings release and in Green Dot's filings with the Securities and Exchange Commission, including our most recent Form 10-K and 10-Q. For additional information concerning factors that could cause actual results to differ materially from the forward-looking statements. During the call, we will make reference to our financial measures that do not conform with Generally Accepted Accounting Principles. For the sake of clarity, unless otherwise noted, all numbers we talk about today will be on a non-GAAP basis. Information may be calculated differently than similar non-GAAP data presented by other companies. Quantitative reconciliation of our non-GAAP financial information to the directly comparable GAAP financial information appears in today's press release. The content of this call is property of the Green Dot Corporation and is subject to copyright protection. Now, I'd like to turn the call over to Dan.

Good afternoon, everyone and thanks for joining us to discuss our first quarter results. Green Dot delivered a strong first quarter, highlighted by margin expansion across our businesses with non-GAAP revenue up 4% and adjusted EBITDA increasing 23% driven by 360 basis points of margin expansion. I could not be more proud of our team for delivering these results which George will cover in greater detail shortly. Before I turn it over to him, I'd like to share a few comments on our segments and key components of our strategic plan to unlock long-term shareholder value. In Consumer Services, our efforts to strengthen our customer base continue bearing fruit as our revenue per average active customer increased 9% versus the prior year and is up 26% compared to the first quarter of 2020. The launch of GO2bank and expansion of our features, including overdraft protection, are fueling engagement and creating a more valuable customer base. I will touch on GO2bank further in a moment. In B2B Services, our strong performance is driven by the incredible long-term growth potential afforded to us by our strong relationships with leading partners. Our partnerships offer unique channels to give customers new value. For example, with one partner, we quickly enabled a successful cashback rewards promotion that provided meaningful value to their customers and helped them reduce the burdens that their customers are facing from rapidly rising prices. And I would be remiss if I did not mention our PayCard business which continues adding employers and driving adoption of earned wage access, resulting in attractive and profitable growth. Finally, our Money Movement business benefited from a more normalized filing season in 2022, resulting in a 29% increase in tax refunds processed during the first quarter. I would now like to share my view of the powerful capabilities Green Dot and our robust product roadmap will benefit from once our technology transformation is complete. In doing so, I want to reiterate that this exercise is far more than an effort to reduce costs and is more importantly, a transformation in the way we build and deliver products and serve our customers and partners. As referenced on our last earnings call, one aspect of our technology transformation involves the creation of a modular, fully digital front end, allowing for build once, use many capabilities. To help illustrate this, today, when we build a feature like overdraft or modify the user experience for our customers, we spend engineering time to develop that same feature for each unique processing platform we operate on. Not only is the build itself required multiple times but so our quality control, risk management, compliance work, training materials, customer service and experience and on and on. Not only that, we are also building standard banking features multiple times in many cases. You can imagine how inefficient and costly this process is and how excited we are about the dramatic improvements our transformation will deliver. In the future, our platforms will provide much of this capability out of the box with a configurable package and user experience. This means we can offer a feature to one or all of our partners to one or all of our channels to one or all of our segments. Each product experience can be configured for each unique environment with little to no additional engineering support or resources. Let's imagine when we roll out a small dollar unsecured credit solution for our GO2bank customers. Much of that functionality will be out of the box and can be quickly and seamlessly delivered to our other customers in the direct channel, our customers in retail and the customers of our partners with very low marginal cost. Small dollar credit is a single example. This same experience will apply to any product we develop, whether that be small business banking, savings and investment products and other capabilities on our roadmap. All of this while having the ability to embed and distribute accounts across partner networks with nominal marginal cost of account creation. Building on that, our platform will be supported by modern risk management and customer service tools, enabling a safer and enhanced feature-rich experience for the end user. My strong belief is Green Dot will emerge from this transformation as a highly differentiated and formidable competitor, capable of delivering accelerating and profitable revenue growth. Now turning to GO2bank. The number of GO2bank accounts continues to grow quarter-to-quarter and now makes up a meaningful percentage of our total actives in the direct business. Additionally, we are encouraged by the key performance indicators of GO2bank, including spend per account, the adoption of additional features and retention. Simply put, we are pleased with GO2bank's performance to date, excited about its future and fully committed to allocating the appropriate level of resources to GO2bank to achieve an optimal return on our investment. We are often asked about our plan to grow this business in an environment where our competitors are more focused on customer acquisition as opposed to revenue and profitability which is a fair question. Reality is we remain focused on maximizing the return on our marketing investment and are disciplined about when and how we go to market. We are confident we understand our target customer and when it makes sense to put our marketing dollars to work. In building any business, progress is rarely in a straight line but the results we are seeing give us confidence in our strategy and will enable us to continue growing GO2bank while ensuring we deliver the profitability our investors expect. Finally, I would like to provide an update on Green Dot's business development efforts and the role line intent to play going forward. In the past two years we have seen Green Dot strengthened our operational footing, supported by new leadership across the organization. With this foundation in place, Green Dot is increasingly focused on business development, ensuring the pieces are in place for long-term sustainable growth. I intend to play a key role in this effort and have devoted a considerable portion of my time over the last few months meeting with prospective partners and customers. I've come away from these conversations with incredible optimism about Green Dot's ability to deliver innovative financial solutions to an even larger market than originally envisioned. Much work remains on this front, but I look forward to sharing our progress, including new wins in the coming months. With that, I'd like to turn the call over to George to discuss our financial results.

Thank you, Dan and good afternoon. In my remarks today, I plan to review our first quarter results, share our progress delivering value to shareholders, provide a brief update on our technology transformation and I will conclude with our updated thoughts on the remainder of 2022. Our first quarter results were stronger than expected. On a consolidated GAAP basis, revenue, operating profit and EPS grew 2%, 52% and 52%, respectively. On a non-GAAP basis, revenue, adjusted EBITDA and earnings per share increased 4%, 23% and 28% compared to the prior year. Consolidated revenue during the quarter as measured either on a GAAP or a non-GAAP basis was adversely impacted by the discontinuance of the government stimulus received by our customers in the prior year quarter. During our last earnings call, I mentioned that we believe about $4 billion in GDV was received directly related to various government stimulus programs during the first quarter of 2021. Despite this significant headwind, we were able to grow revenue compared to the prior year quarter due to the growth in a large BaaS partner, the introduction of overdraft protection across elements of our cardholder base and the timing of the tax season, which was delayed in the prior year due to COVID. Our adjusted EBITDA of $90 million increased 23% and our adjusted EBITDA margin expanded to 22.9%, up approximately 360 basis points from the prior year quarter. Government stimulus programs during the prior year period created difficult revenue comparisons across our business, but it is also the case that the rapid inflow of these funds caused significant spikes in our operating costs as we adapted to the increased volume on short notice. We have successfully brought these costs down compared to the prior year quarter, most notably in customer service. We also successfully negotiated various network and vendor concessions that resulted in favorable outcomes in the quarter, some of which should not be expected to recur. These benefits were offset somewhat by persistently high fraud and related costs incurred during the quarter. As a result of these changes during the quarter, non-GAAP EPS of $1.06 increased 28% versus the prior year. As it relates to our segment results and key trends. Our Consumer Services segment revenue declined about $26 million or 14% as stimulus programs in the prior year period resulted in significant headwinds to our key metrics. The adoption of overdraft protection resulted in continued expansion of revenue per average active customer, which increased 9% versus the prior year and is up 26% over the first quarter of 2020. Due to this improvement in revenue per account, along with cost management, segment profit increased by about $1 million or more than 1% to $54 million despite the decline in total revenue. Our B2B Services segment revenue increased $28 million or 26% to $134 million due to continued growth in our BaaS programs, both existing and new and our employer programs. Similar to our Consumer segment, the loss of stimulus programs compared to the prior year resulted in year-over-year declines for certain key metrics. Segment profit of $22 million increased about $5 million or 27%, approximately in line with our revenue growth. While BaaS partner programs containing a fixed profit limit our ability to expand margins overall for this segment, we achieved solid underlying margin expansion for our other BaaS programs and the employer business during the quarter. Money Movement revenue increased $7 million or 8% to $97 million as our tax business benefited from a more normalized filing season, driving a 29% increase in tax refunds processed versus the prior year period. Cash transfers declined 14% versus the prior year due to the combination of lower active accounts and the difficult comparison created by the stimulus programs during the prior year. Segment profit increased about $13 million or 26% to $61.5 million. Before turning to the other topics I will be covering today, I would like to make a few comments on important trends we are seeing. First, we observed unexpected softness across our business during January and into February, both as it relates to acquisition and consumer spending. We believe this was likely attributable to the rise in Omicron cases throughout the country during the period. Towards the end of March and into April, the rate at which our cardholders receive tax refunds appeared to accelerate and spending patterns more closely resembled expectations. Second, while the federal tax season reverted to a relatively normal schedule this year compared to last, the cadence across the quarter was nevertheless somewhat delayed compared to our own internal expectations and relative to 2019, the year prior to COVID. Third, while we enjoyed modest top-line growth and impressive margin expansion during the quarter, our quarterly active accounts and GDV declined 22% and 16%, respectively, compared to the prior year. We believe these declines are primarily driven by the existence of stimulus and unemployment benefits in the prior year. This dynamic most dramatically impacted the Consumer Services segment. I will also point out, however, that our direct-to-consumer channel resides within this segment and there are a few nuances that I would like to highlight for you. As you know, this is the primary channel for the distribution of our GO2bank product. There remains a large active card base of legacy brands as well. We are not marketing to drive acquisition for this portfolio of brands, and the natural attrition from these brands offsets much of the growth in GO2bank. Additionally, we carefully manage the rate of marketing investment in this channel as it is dilutive in period, and we do actively modulate spend based on observed cost of acquisition. Early in the first quarter, we intentionally but temporarily reduced marketing for acquisition due to higher-than-expected costs to acquire. This is one reason our marketing expenses dropped year-over-year. Lastly, within the B2B Services segment, a long-planned and contemplated partner roll-off contributed to the decline in active accounts. Absent this conversion, performance from our other BaaS partners was largely consistent with the strong results we have reported over the last several quarters. Turning to our financial position, our business continues to produce strong cash flow, generating $116 million of operating cash flow during the quarter, an increase of $35 million versus the prior year. We ended the quarter with $82 million of cash at the holding company. Our cash balance, the strength of our cash flow together with access to our $100 million revolver provides us sufficient liquidity to invest in our strategic priorities while selectively returning cash to our shareholders. When we last spoke in February, Green Dot announced a $100 million share buyback authorization. We are pleased to report today that we executed a $25 million accelerated share repurchase agreement at an average price of just over $27 per share. At current valuations, we view the repurchase of Green Dot shares as a compelling use of our excess capital and plan to execute the remainder of our $100 million share buyback authorization over the remainder of 2022. On our last earnings call, we provided detailed thoughts around our planned multiyear enterprise-wide technology transformation. To review briefly, our efforts entail the consolidation of processing activities onto an in-house platform, the implementation of modern risk management tools, the creation of a modular, fully digital front end and a cloud-native stack conversion. While much of this work remains in front of us, we remain confident that upon completion, Green Dot will be a much stronger competitive and valuable company for our customers and our shareholders. At this time, there is no change in our thinking around: one, the measurable financial impact of at least $35 million of annual cost savings and an additional $14 million of annual technology savings; or two, our timeline which, as a reminder, we expect to see a more meaningful impact during 2023 with a substantial portion of our investment being realized in 2024. Remember that these estimates do not include potential savings related to the consolidation of additional processing platforms that will be converted in the future or general operating efficiencies we expect to achieve across the organization resulting from a simplified operating environment or revenue enhancement opportunities we additionally expect to achieve. These additional savings and opportunities are more difficult to measure at this stage of the project, although we look forward to providing additional updates on our progress and milestones achieved in the coming quarters and at our Investor Day in November. Before handing it back to Dan for his closing comments, based on the trends we are observing in our business today, we are making the following adjustments to our 2022 guidance. We are reaffirming our revenue range of $1.39 billion to $1.43 billion. We are raising our adjusted EBITDA by $5 million on the low end, and the high end range is now $230 million to $240 million. Consistent with our raise on adjusted EBITDA, we are raising our non-GAAP EPS range to $2.32 to $2.46 per share. With respect to the second quarter, as compared to the equivalent prior year quarter, we anticipate revenue to be approximately flat, our adjusted EBITDA margin to be approximately between 15% and 16%, with non-GAAP EPS expected to be in the range of $0.52 to $0.56 per share. With that, I'll turn it back over to Dan.

Thanks, George. In closing, I am encouraged by our strong start to 2022 and thankful for the collective efforts of our employees who contributed to these results. I look forward to the remainder of the year and beyond as we make progress on our journey to make Green Dot a highly differentiated and formidable competitor, delivering value for our customers, partners and shareholders. I'd now like to hand it back to the operator for questions.

Our first question will come from Ramsey El-Assal with Barclays.

Damian on for Ramsey. So let's focus on the B2B segment. I think that really came in a lot higher than what we were thinking and it's nice to see that you have that other key B2B Services customer. Maybe you can just give a little bit of color on the driver there. Is this sort of a one-time thing? Or are you thinking it's more sustainable? And also good to see on the increasing margin there year-over-year, I guess, it's flat a little bit but it's still good given the fixed price contracts. So what are you thinking about that margin in that segment? A little bit more color would be appreciated.

I'll let George comment on the margins, but just in terms of just that business segment, as I've said, I think, now for a couple of years, that's what we really see as our tremendous growth engine potential with the sizable partners that we have there. But in addition to those sizable partners in the BaaS business, don't forget in the B2B segment, we also have our PayCard business, and the earned wage access program that we're rolling out is beginning to get some traction. I see that business continue to deliver, as it always has, over the past year, just good solid growth. George, do you want to comment on the margin question?

Yes. Sure, Dan. Thanks for the question, Damian. I think with respect to the margin, we have a large account in that channel, which on the marginal revenue growth does not contribute material incremental margins. So the margin sustainability in spite of that is coming from the rest of the BaaS partners that we have in that channel and importantly, as Dan mentioned, in our employer PayCard channel, which is a great business and grows steady and grows at high marginal returns. So along with the cost control that we undertook in the quarter relative to the prior year, those customers are just healthy, have healthy economics and continue to grow.

Yes, that's great. For a follow-up, I'll ask Dan about your comments on investing in GO2bank. You mentioned your commitment to this investment, and previously we discussed the right level for customer acquisition. Do you still believe this is the right level, or have you found that you can acquire customers at a lower cost since the pullback you noted in January and February? Alternatively, are you considering increasing investment to take advantage of the opportunities based on the revenue per customer you are observing?

We continue to see growth in revenue and profit per account, which reinforces our strategy to make GO2bank a preferred choice for customers. Our aim is to encourage them to set up direct deposits, increase their spending, and utilize future features as they become available. This commitment drives us to focus on the growth of GO2bank. Regarding spending, we will consistently monitor and adjust our investments based on the returns we observe. We typically ramp up spending seasonally and adjusted our approach in January and February to wait until our bidding costs decrease, allowing for more effective use of our funds. However, I remain committed to an annual marketing budget for GO2bank to ensure sustained investment and growth for the business over time.

And our next question will come from Andrew Jeffrey with Truist Securities.

I guess I'd like to, Dan, perhaps dig in a little bit more on the sort of the CAC question. I mean is it in your mind purely seasonal that what you're seeing or what you saw in January and February was elevated cost to create new accounts? And how do you gain confidence that the environment normalizes and you can spend what you want to this year at good economics? Do you have some insight on that?

Yes. I think it's seasonal but it's also cyclical in terms of investment dollars that are out there. And in terms of insights, I believe some anecdotal information I've received is that it's harder for the neobanks to have free money to throw at marketing. And for that reason, I do believe that the cost for customer acquisition for us is going to come down. And that's the thing I hope that people can see and recognize and appreciate that what we have here at Green Dot. We have a very large enterprise that's generating good significant free cash flow and affords us the ability to consistently invest in our business, invest in technology, invest in quality and also invest in marketing dollars on a consistent basis to grow GO2bank. We're not at the mercy of the market like other neobanks out there that need to raise funds in order to continue to feed their market invention. So, as we all know, the environment has changed pretty dramatically over the last six months. So we do anticipate that our marketing costs or marketing dollars will be able to be spent more efficiently in the coming quarters.

That's helpful. It would be good to track that. As a follow-up, direct deposits are obviously an important initiative. When you look at what's driving growth in that area, is it primarily PayCard right now? How do you feel about the momentum in that business compared to GO2bank? How do you see the interaction between the two over the next few quarters?

I'm going to let George take the first crack at that because George has always been a tremendous fan of the PayCard business. And so George, why don't you guide. No, with all seriousness, I'm a tremendous fan as well. Don't get me wrong. But I think George has some really valuable insights.

Thank you for the question, Andrew. I want to clarify that in the B2B Services channel, direct deposit accounts are not disclosed, so most PayCard accounts are excluded from our external reports. These accounts can exhibit characteristics such as high turnover in certain employers, like a restaurant chain with 100 employees. However, active accounts are likely to increase if that employer experiences growth, regardless of the average life of the card. We approach the economics of this channel differently than we do with the GO2bank experience. Currently, accounts in this channel are growing robustly, and we're very enthusiastic about the opportunities ahead. We occupy a leading position in this market and have significant potential for expansion. Moreover, the introduction of early wage access will create an additional growth avenue for PayCard. While it may be a smaller part of our business today, it is one of our most promising areas.

And our next question will come from George Sutton with Craig Hallum.

Dan, I'm excited to hear you're going to build up your frequent flyer mile account with the PD program. I'm curious if you could just discuss where you believe the BaaS platform stands, particularly as you are pitching potential accounts at this time, both from a people and technology perspective and how that may have changed over the past few quarters.

George, I hope to see you in an airport sometime this year. It would be nice to catch up. I believe we have the best team in the BaaS business. About 90% of the team has joined us in the last 12 to 18 months, positioning us well for strong leadership and vision. On the technology front, with our project transformation and platform rebuilding efforts, we still have some work to do. However, we have demonstrated our resourcefulness in delivering necessary solutions to our partners, even if they may not fully appreciate the challenges involved. I would rate our team an A plus while acknowledging there's technology work ahead for our own improvement that isn't immediately visible to our customers.

And as a follow-up, so Global Payments on their call mentioned that NetSpend has had significant interest. And as I think, logically, you have a much more significant opportunity, the market really isn't giving you a lot of credit but seems to be very interested in that asset. Can you just talk about that dichotomy in your view?

Value is in the eye of the holder. So what else do you want me to say on that, George? I bet on this team here all day long.

Well, maybe I'll add one to that, Dan. If you think about that asset relative to what we have today or maybe didn't have two years ago, that asset has a processing platform which is more than a decade old at this point. We're building out a contemporary internal processing capability. That asset has a large retail footprint which is sitting below our brands in most retailers around America and performs worse than our brands in most retailers in America in our view. And it has a direct-to-consumer channel which we have as well, which we think our channel performs quite well with our brand interest in surrounding GO2bank. So for us, it's just a very different equation than perhaps for a firm that doesn't have our asset set.

And our next question will come from Mike Grondahl with Northland Securities.

Two questions. One, could you talk a little bit about the overdraft protection product and the contribution in the quarter and how that's maybe ramping? And then secondly, I think George mentioned some network vendor concessions but they weren't going to be repeated and maybe some higher fraud costs. If we could just get a little bit more color there, it would be great.

Sure. Let me give this a shot here. So we won't be specifically disclosing the overdraft revenue, although I would point out that overdraft revenue in Q1 of 2021 was de minimis. So virtually all of the revenue coming from overdraft year-over-year represents an increase over the prior year. And overdraft does come in at a relatively high margin compared to the portfolio. So it was a meaningful contributor to the expansion in margins on a year-over-year basis, although there are many moving parts to your question. We also enjoy the benefit of having relatively significant decreased costs in our customer service delivery operations. As I mentioned in the script, we had a real scramble a year ago, trying to ramp up to respond to the stimulus payments and the customer issues that resulted from that, which disproportionately increased costs. So that was an important factor. We moderated our marketing spend and GO2bank, as I mentioned and Dan commented on, that was a factor. To the vendor question you have in other items I made reference to that, we might think of as nonrecurring. There are four or five vendors that we were negotiating various issues with, mostly related to ordinary course business challenges that you have with any partner where we felt that they owed us some money and we were successful in negotiating those things. Those sorts of things I'm mentioning you can think of in $4 million to $6 million range for the quarter. There's some subjectivity to that. But that's the way I would think about it. Lastly, you mentioned fraud. Along with the stimulus inflows in the prior year, I believe this is true for probably all financial institutions, neo banks, including Green Dot, our rate of fraud losses increased considerably in Q1 and Q2, in particular. And although they've come down, they remain, in our view, unacceptably high and are a drag on our quarter in Q1. So hopefully, I've gotten the points you raised. And if not, let me know.

Our next question will come from Andrew Schmidt with Citi.

To follow up on some of the previous questions, I'm trying to understand the various factors affecting the direct deposit active accounts within consumer. What is the best way to assess the trajectory, especially considering the influence of stimulus impacts and marketing challenges? Is it reasonable to anticipate a return to growth by the end of this year, or should we expect a longer-term slowdown extending into 2023? I'm seeking to clarify the trajectory further.

Yes, thank you for the questions. I acknowledge that it’s a complicated situation with the stimulus, and some of it didn't fade until the fourth quarter of 2021. Therefore, there will still be year-over-year impacts from the stimulus. However, as you consider our guidance along with our results for the first and second quarters, you will notice that implied in the guidance is an expectation for growth in our financials by the end of the year. The implications for accounts will differ depending on the channel.

Got it. That's helpful. And then just digging a little bit into tax season because it does seem like that was a bright spot. Maybe it's been a little bit while since we found a normalized tax season. When you say normalized tax season, do you mean sort of higher average refunds, higher number of refunds? Is this more of a timing shift? Maybe just to dig into that a little bit more in terms of what you're seeing and just more to come in the second quarter? And then just to add on that to that, is there anything you're doing differently in the tax channel? I remember a few years ago, Green Dot was to continue to sort of add more products and services to the tax channel. Curious if that's still a focus and if that's a factor here as well.

Yes, of course. Yes, I'm glad you asked another differentiated asset of Green Dot that we're very proud of and is doing very well. It is hard to understand the business analytically because of all the disruptions in '20 and '21 related to COVID. But here's one way I think it might be helpful for you to think about it is if you look at our disclosures in our earnings release today, we disclosed $9.61 million tax refunds processed, $9.61 million. If you look at that compared to the prior year first half numbers which were about $11.6 million, that's about 83% of the prior year first half year. And if you look at the prior year Q1, it's about 64% of the first half happening in Q1 last year. So that's increased. We have seen a fairly important increase in our tax business revenue relative to the prior year quarter. Although if you go back and you look at several prior years, you'll see that 83% is still a little bit lower than like 2019 or 2018. So we do think tax season was a little bit slow relative to our own internal expectations. But it's much more similar to years prior to 2020 than it has been in the past. So the business is doing great. To the other point you raised in your question about new capabilities for the most part. Well, let me point out, we launched a new technology platform, hasn't gotten all the highlights of this project, but it was a very important investment throughout 2021 for us. It went live this year. It allowed us to manage that business on a much more efficient basis. And I would say that's a huge success for our tax team and our technology team. Lastly, as I'm going on here, we did in-source some underwriting on tax advanced products that we are doing in our own bank this year that we had not done in the past which also considerably contributed to the increase in margin in that business. So the business is doing great. Certainly more excited about the leadership and how it's performing.

And if I could just sneak one more in on the tax business. Are you seeing the same level of deposits on, I guess, Green Dot cards that you would have seen in the past or has there been a little bit of a shift there in the market? Just curious what you're seeing in terms of lost processing looks good but just I was curious about the actual lot and associated spend.

Well, the average tax refund that we have seen has been high relative to prior years. So that's the actual refund that a client of the business gets. Some of that will go into cards. Some of it will be dispersed via check. You'll never see it in our purchase time of GDV. But, so let me leave it there. So relatively high compared to prior periods.

This will conclude our question-and-answer session. I'd like to turn the conference back over to Dan Henry for any closing remarks.

Thank you, operator, and thank you, everybody, for joining the call today and your continued trust and interest here at Green Dot. George touched on it briefly and just the leadership here. These results are a result of the people that we have in the organization. And what I'm really proud of is that even in light of the times we're dealing with and all the headwinds this great quarter that we had is the result of many, many things going well. So, improvements in areas of growth in various pockets across the organization, improvement in cost control and efficiencies and important investments that we've made. So that's just a sign to me of a team that's very capable and really starting to find their stride. So I'm super excited about our potential and looking forward to our next call. Thank you, everyone.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines at this time.