Robinhood Markets, Inc. Q1 FY2024 Earnings Call

Hello and welcome to the Robinhood First Quarter 2024 Earnings Conference Call. All participants are currently in listen-only mode. After the presentations, we will have a question-and-answer session. I would now like to hand the call over to Chris Koegel, VP of Corporate FP&A and Investor Relations. You may begin.

Thank you, Joanna, and thank you to everyone for joining Robinhood's Q1 earnings call. With us today are our CEO and Co-Founder, Vlad Tenev; and CFO, Jason Warnick. Before getting started, I want to remind you that today's call will contain forward-looking statements. Actual results could differ materially from our expectations, and we have no duty to provide updates unless legally required. Potential risk factors that could cause differences, including regulatory developments that we continue to monitor, are described in the press release we issued today, the earnings presentation, and our SEC filings, all of which can be found at investors.robinhood.com. Today's discussion will also include non-GAAP financial measures. Reconciliation to the GAAP results we consider most comparable can be found in the earnings presentation. With that, let me turn it over to Vlad.

Thanks, Chris. Hi, everyone. I again will keep my remarks short so that we can have plenty of time for questions. Just to remind everyone, Robinhood is focused on three things: number one, winning the active trader market; number two, increasing wallet share with our customers; and number three, expanding internationally. We believe the strategy is working and it led to strong business outcomes in Q1. First, the retail trading market share continued to increase in Q1 and was really bolstered by our product innovation. As a result, year-over-year notional trading volumes were up significantly across equities, options, and crypto. Net deposits were a record $11.2 billion with strong diversity across brokerage, cash sweep, and retirement. This translates to a 44% annualized organic growth rate and continues our multi-year track record of delivering 20%-plus net deposit growth. Customers are also moving their assets to Robinhood in record numbers. Q1 was the second quarter in a row we had net asset inflows from every major brokerage, totaling nearly $3 billion, more than twice our Q4 level. I also wanted to highlight Gold subscribers. Customers find our Gold offerings compelling across high-yield cash, retirement, margin rates, and now our Gold credit card. This led Gold subscribers to reach 1.7 million in Q1, higher than at any other point in our history. The 260,000 Gold subscribers we added in Q1 was the fastest in the past three years. It’s also exciting to see that nearly 20% of new funded customers in Q1 subscribed to Gold, more than double a year ago. Putting this all together with continued expense discipline led to record revenues of 40% year-over-year and record GAAP EPS of positive $0.18. Now what's even more exciting is that we continue to deliver amazing value to customers. And before I share more about what we're doing for our Gold customers, let's have Jason review our financial results.

Thanks, Vlad. It's good to speak with everyone today. As a reminder, last year we drove significant profitable growth, with revenue up 37% and adjusted EBITDA margins expanding by 36 points. In 2024, we are focused on driving another year of profitable growth and we had a strong Q1, with 40% year-over-year revenue growth and 14 points of margin expansion from a year ago. We also set records in Q1 for quarterly revenues, adjusted EBITDA, adjusted EBITDA margin, net income, and GAAP EPS. Looking more closely at our Q1 results compared to a year ago, total net revenues grew 40% to $618 million; adjusted EBITDA more than doubled to $247 million; incremental margins were 75%, demonstrating the scalability of our cost structure even while we increased marketing and growth investments; and adjusted EBITDA margins expanded by 14 points to 40%, as we make progress over time towards the 50%-plus levels we see from incumbents. All of this led to net income of $157 million, or $0.18 of EPS. We're pleased with our results in Q1 and we aim to continue delivering profitable growth in 2024. Now, let's move to our first quarter business results. Assets under custody finished Q1 at a record $130 billion, up 65% year-over-year. A key driver of that asset growth was strong Q1 net deposits of over $11 billion, which is more than double last year's quarterly average, and translates to a 44% annualized growth rate. We are encouraged by the breadth and durability of Q1 net deposits. First, we saw strong participation from both existing and new customers, with about 75% of net deposits coming from customers who've been at Robinhood for over a year. Second, we saw a nice mix of continued strong contributions from customers and wins versus brokerage incumbents, with about 75% contributions from customers and 25% net wins from incumbents. Third, deposits into our platform were balanced across product categories, more than half of Q1 net deposits went to brokerage, another quarter to cash sweep, and the last 20% to retirement. Overall, we are really pleased with the diversity of net deposits as customers engage with us across our platform. Looking at Q2, it’s off to a good start as well, with April being our highest month of the year for net deposits at nearly $5 billion. With our continued progress in early May, we've brought in more net deposits year-to-date than the $17 billion we did in all of 2023, with most of the year still in front of us. We're also delivering growth in Robinhood Gold. As a reminder, Gold subscribers on average compare to our overall customers in Q1, with Gold subscribers having 8 times the average assets at over $40,000, growing net deposits roughly twice as fast, and having 5 times the retirement account adoption. Gold ARPU is also multiples of our average customer, nearing annualized recurring subscription revenue approaching $100 million. In Q1, we grew Gold subscribers to 1.7 million, up 42%, or 500,000 from last year. This momentum has continued into Q2 as we added another 140,000 Gold subscribers in April, more than half of our Q1 growth. Let’s now turn to our financial results. In the first quarter, we generated net income of $157 million, up 5 times sequentially as we grew revenues while staying disciplined on expenses. Looking at Q1 revenues, transaction-based revenues increased sequentially across equities, options, and crypto, and net interest revenues grew from higher balances and securities lending activity. So far in Q2, we've continued to see robust trading with equity notional volumes around $70 billion; options contracts reaching a monthly record of roughly $125 million; and crypto notional volumes around $10 billion. Now, turning to Q1 expenses, combined adjusted OpEx and SBC was $460 million in Q1, as we remained disciplined on expenses even while increasing investments in marketing and growth. Looking ahead, while the year is off to a strong start, we know it’s important to stay disciplined on expenses. Our full year adjusted OpEx and SBC outlook is unchanged, ranging from $1.85 billion to $1.95 billion. Before I pass the call back to Vlad, I want to share some perspectives about our opportunity to drive profitable growth in 2024 and the years to come by growing revenues and expanding margins. First, we believe we can continue our multi-year track record of delivering 20%-plus net deposit growth rates, supported by a young customer base gaining share of global wealth, share gains in existing markets, and expansion into new markets and product categories that give us more opportunity for growth. Second, as customer assets grow over time, we believe this will drive strong revenue growth as well. We are naturally hedged between interest rates and trading, and we continue to diversify our business as we introduce new products and enter new markets. Third, we're a technology company with a highly scalable platform and about 90% fixed costs. As revenues increase, we believe we can drive significant margin expansion and free cash flow. In closing, we had a strong Q1, and we have great momentum to start Q2. We remain focused on driving profitable growth for shareholders as we work to maximize EPS and free cash flow per share in 2024 and the years to come. Now, I’ll turn the call back to Vlad.

Thanks, Jason. As I said earlier, the second part of our strategy is increasing wallet share with customers, including growing Robinhood Gold subscriptions, which hit an all-time high of 1.7 million in Q1. In March, we held Robinhood's first-ever keynote event to introduce even more value that we are providing Gold customers, including an all-new customizable app experience, a 1% unlimited deposit boost for Gold customers that's launching soon, and a brand new Robinhood Gold credit card with 3% back on all purchases. We're seeing lots of commentary about how amazing of a deal Gold is, and we're happy customers are recognizing that and starting to spread the word. Over 1 million people have signed up for the Gold card waitlist, only half of whom are Gold subscribers today. So, we believe we can substantially grow Gold adoption as we roll out the card. We love seeing the progress we're making, attracting, retaining, and expanding Gold customer relationships on the journey to be the most trusted, lowest-cost, and most culturally-relevant money app worldwide. I want to thank our customers for continuing to trust and advocate for the platform as we work to democratize finance for all. The business is in a great position because of you, and we're just getting started. Our team has been working incredibly hard to deliver even more value. The roadmap is full. There's so much to do. Now, let’s move on to questions.

Thank you, Vlad. For the Q&A session, we’ll start by answering the top few shareholder questions from Say Technologies ranked by a number of votes. We passed over questions we've already addressed on this call or in prior quarters and grouped together questions that shared a common theme. After the Say questions, we'll turn to live questions from our analysts. The first question is from Alexander M., who asks, what impact will the SEC Wells notice have on the business? Jason, do you want to start on that one?

Yeah, I’ll maybe start and then Vlad can add some thoughts. First, for our customers, your accounts are not affected by this. It's business as usual for Robinhood Crypto. We're, of course, disappointed to have received the notice. As you know, we've operated our crypto business in good faith. We've been very conservative in our approach in terms of coins listed and services offered. We are a highly regulated company and have applied the same legal and compliance standards we use for our brokerage to the operation of our crypto business. So, it’s disappointing to see more regulation by enforcement here. Vlad?

I mean, echoing Jason, this is a disappointing development. We firmly believe U.S. consumers should have access to this asset class. They deserve to be on equal footing with people all over the world. At the end of the day, we will defend the firm and continue to advocate for our customers.

Great. Thank you. The next question is from Joseph C., who asks, when are the new credit cards getting fully released? It seems that many are still on the waiting list. Vlad, do you want to start that one?

Yeah, I'll take that one. Thanks for the question. First of all, we are really excited about the Gold card and the value we are going to be providing to customers. We've seen a ton of demand. I mentioned earlier, over 1 million customers have signed up for the waitlist so far. The product is looking great. You might have noticed we've dropped the credit card app on the app store and we've rolled it out to the first customers outside of the company. As we think about this rollout, we want to balance the desire to get the card to customers quickly with managing risk to the capital well as we enter a new market for us. So, we are starting with an initial group in the tens of thousands of customers over the next few weeks. We're going to observe them carefully, monitor the data, and look at their spending and borrowing activity, and we will use that information to inform the broader rollout of the card. We really want to be prudent as we roll this out since this is a new business line for the company.

Great. Thank you, Vlad. The third question from Say is from Daniel R., who asks, the 24-Hour Market was halted. How can we trust the platform when markets become volatile? What steps are being implemented to handle future volatility?

Well, first, it’s really been awesome to see how much interest there is in our 24-Hour Market offering. Over $10 billion in volumes have transacted in the overnight section since it launched a year ago. We now offer overnight trading in over 900 names and this is one of the core differentiators of Robinhood. You don’t find this type of offering elsewhere easily. Regarding why trading was affected, we route to a third-party ATS. The ATS we use went down for the evening. This affected us and other firms that route to it, but the ATS was able to support trading again in just a few hours. Looking ahead, we're leading in this offering, and as we continue to invest in it, we believe it will improve over time and become more resilient. So, please believe us when we say that we're committed to ensuring this offering is reliable and feature-rich going forward.

Thank you, Vlad. That concludes our shareholder questions from Say Technologies. We appreciate our shareholders taking the time to ask these questions to Vlad and Jason and look forward to more next quarter. Now, I'll turn the call over to Joanna to lead Q&A from analysts.

Thank you. Our first question comes from Devin Ryan with Citizens JMP. Your line is open.

Hey, thanks so much. Hi, Vlad. Hi, Jason. How are you?

Hey, Devin.

I want to ask a question on the growth in new deposits. I mean, just really impressive momentum there and good to hear the second quarter is accelerating further. And it feels like you're just scratching the surface on Gold adoption, I think Vlad as you talked about. I also think that the offering really stands out in the market. So, with that said, I heard Jason's comments on better ARPU for Gold customers, but is it possible to kind of simplistically unpack the economics you're expecting on new deposits coming into a Gold-connected account under these new promotions relative to deposits that aren't or even kind of like revenue per asset under kind of the model prior to these promotions? I'm just trying to think about the economics related to dollars coming in because it seems like you're seeing a really nice acceleration there. Thank you.

Yeah, thanks, Devin. It’s Jason. I'll go ahead and take that. So in short, we love the economics of the match promotions that we've been running. I think I mentioned last quarter that the payback on the 1% match is just under a year, and on the 3% match, it's between two and three years. We're watching that closely on a monthly cohort basis with our customers. We're seeing the 2023 cohorts already paying off, and 2024 is off to a great start. We mentioned on our prepared remarks that the strength of net deposits, at a 44% annualized growth rate is really well-diversified between customers who have been at Robinhood for over a year, representing 75% of those net deposits. We are also seeing that 75% cut a different way are unrelated to the promotion. So, really strong promotion response, but it's only a small part of the strength of the overall deposits for the quarter.

Thank you. Please standby for our next question. Our next question comes from the line of Dan Dolev with Mizuho. Your line is open.

Hey guys, thank you for taking my question. Great results out there. Really, really nice.

Thanks, Dan.

Of course. Yes, so you mentioned some really strong numbers in April, really strong momentum. Can you maybe elaborate a little more regarding the momentum that you're seeing heading into the second quarter? Any color and additional views on that momentum would be greatly appreciated. Thank you.

Yeah, absolutely, Dan. So we're seeing strong trading across equities, options, and crypto continuing into the next quarter. We're seeing strength across the business in terms of new Gold subscribers. We mentioned and you mentioned the strength in net deposits, nearly $5 billion. We’re really seeing great diversity of strength. Retirement assets are now crossing over $7 billion, which is remarkable growth, and we love to see our customers saving for the long-term with us. We're going to share our metrics next week on the month of April and so you'll get a fuller picture there. But it's really across the board, whether it's securities lending or trading or net deposits.

I would just add, we are, of course, excited about the Q1 performance and the start to Q2. I think we have some medium- to long-term tailwinds for the business. The Gold benefits that we announced in March, including the 1% deposit match, really resonated strongly with customers based on early feedback, which has yet to launch. We're entering a new product category with the credit card. Additionally, we've been working on our futures and web Pro product for active traders. We are excited about what we're building as our team has been working incredibly hard to create polished products. We tend to get excited about things on a quarterly basis, but we're running this business for the long term, and I think you’ll see a lot more from us.

Thank you. Please standby for our next question. Our next question comes from the line of Steven Chubak with Wolfe Research. Your line is open.

Hi. Good afternoon, Vlad. Good afternoon, Jason.

Hello?

Hey, Steven.

I wanted to start with a question just on the incremental margin excluding SBC coming in at 75%, certainly a good outcome. As we think about the incremental profitability as the business scales, is that 75% benchmark a reasonable expectation for investors to underwrite? Can you gauge whether there's room for even further operating leverage or upside given the marketing spend was relatively elevated in the quarter?

Yeah, thanks for the question. We’re not providing guidance on incremental margins. However, about 90% of our cost structure is fixed, meaning that 10% of our costs are variable relative to platform activity. This gives us a lot of opportunity to allocate incremental revenue to the bottom line. You’re seeing us this year make a significant step up in marketing, with our plan to spend about $100 million more than last year in marketing. Even amidst this increase in marketing and investments for growth, we’re delivering incremental margins at 75%. We feel really good about that. We’ll continue to monitor our costs. We are excited to see revenue per employee cross over $1 million and think there’s plenty of opportunity to expand margins in the future.

Thank you. Please standby for our next question. Our next question comes from the line of Kyle Voigt with KBW. Your line is open.

Hi, good evening. Thanks for taking my question. Maybe just a question on the Gold card. Obviously, the offering is very compelling, and great to see the demand with the waitlist at over 1 million users already. But can you expand upon the expected economics a bit? You noted the $300 ARPU previously, but that was for X1 with a relatively small subset of users that you ultimately ramp to with this offering. Given how attractive the card might be for some more transactor types who don’t carry a balance, are you still confident in your ability to profitably monetize a broad range of potential new clients? And if I add a second part to that question, can you give us any flavor on what you might expect on the transaction revenue side for the offering specifically? I'm assuming there might be some headwind after netting out interchange and rewards, but wondering if you can frame that. Thank you.

Yeah, you bet. Thanks, Kyle, for the question. It’s Jason. The first point I’d make on the credit card is that we feel very strongly aligned with our vision to serve all customer assets and process all their financial transactions. Having a great value credit card is fundamental to that vision. That said, we need to proceed in an economically prudent way. We’ve got a few things that will benefit us. First, we’re able to leverage our scale, and we’re seeing that with a low customer acquisition cost (CAC). We have over 1 million customers on the waitlist with virtually no marketing dollars against that. When looking at our competitors who are spending several hundred dollars, perhaps $500 per customer to acquire a customer, we love this low CAC opportunity that leverages our platform. Our economics are also better than X1. For instance, we’ve improved the cost of funds by over 300 basis points due to our strong balance sheet and financial results. Thirdly, we have an opportunity to benefit from our deeper relationship with customers, which will help us better understand the customers we are underwriting and make better decisions. Over time, we might offer collateralized cards which would improve our economics. Lastly, two-thirds of our customers have a prime or higher credit rating. Together with our prudent rollout, high-quality customers, and benefiting from our scale and deeper relationships, we believe we can land a good economic outcome for Robinhood.

Thank you. Please standby for our next question. Our next question comes from the line of Mike Cyprys with Morgan Stanley. Your line is open.

Hey, good evening. Thanks for taking the question. Just wanted to ask about capital allocation. Hoping you could update us on your latest thoughts there with $5 billion of balance sheet cash and investments. I'm curious about your appetite for dividends, buybacks, and M&A, where M&A can be additive at this point, given you just added the card platform. Maybe just remind us of your hurdle rates and criteria there?

Yeah, thanks, Mike. We love our strong balance sheet, with over $5 billion of corporate cash. There are three ways to use capital to the benefit of shareholders. One is investing in our business for organic growth, which you're seeing us do with our incremental investments for growth, including the $100 million step-up in marketing this year. The second is M&A. You’ve seen us recently acquire X1. We have a very active Corp Dev team and are looking at several opportunities that can augment our team’s talent or accelerate our product roadmap. While there’s nothing to announce, the team remains active. Lastly, we can return capital to shareholders. In the third quarter last year, we purchased about $600 million to buy 5% of our outstanding shares. We’re deploying capital across all three categories. In terms of hurdle rates, it is at least our cost of capital, and we are mindful of that. There’s nothing further to update on capital allocation; it is something we’re constantly evaluating.

Thank you. Please standby for our next question. Our next question comes from the line of John Todaro with Needham & Company. Your line is open.

Hey, great. Thanks for taking my question. And, yeah, great results here. I guess I’m trying to understand the crypto side of the business post the Wells notice and would like more color on where you're thinking. If you look at it and you see that we're being treated similarly to Coinbase, does it make sense to consider broader listings since you’ve been quite conservative on that front? Or is that not a fair way to think about it?

Yeah. I think you’re correct that we’ve been extremely selective about the assets we offer on the platform. I mentioned in the prepared remarks that we have seen increases in volumes and market share on the crypto side. For a long time, we’ve provided customers great pricing on purchasing crypto assets, but we haven't done a great job communicating it. Now we are accurately communicating through the user interface and various marketing channels, which customers are beginning to recognize. There’s more conversation about how favorable a deal they’re receiving on crypto transactions. We're also expanding in the EU, where we believe we can provide great service and offerings to customers. So, our crypto team has been working tremendously hard. The roadmap there is quite extensive, and there’s a lot to improve the product experience for customers.

I would just add that we've been very selective in the coins we’re listing and are confident that our coin selection does not include any securities. We continue to apply that high standard to anything we might list on our platform.

Thank you. Please standby for our next question. Our next question comes from the line of Brian Bedell with Deutsche Bank. Your line is open.

All right. Great. Thanks. Good evening. Maybe just staying on the crypto theme, could you talk about the nature of the surge in crypto volumes in March? I believe you mentioned that April was around $10 billion. While I understand this is a volatile class, could you talk about what drove the heavy activity in March and whether you think we could see spikes like that again? Additionally, can you provide some information on the mix of crypto volumes between the EU and U.S., understanding the EU is still small?

In terms of what drives crypto volumes, I think to some extent, our market share gains adhere to broader market activity. I don’t want to speculate on what the crypto market is going to do; that’s obviously a difficult task for anyone. It's a global market. There have been ETF approvals, as you can recognize. We look at market share in relation to peers because markets fluctuate; however, if our market share continues to expand amid all conditions, we’ll ultimately do quite well in that business. That’s our approach across all asset classes for the active trader business. The goal is to diversify our business to be less reliant on volumes in any one category to drive results. I think you’re starting to see this in this quarter's results, showcasing the performance of the company across various asset classes and increasing wallet share with the rising net deposit growth numbers.

Regarding the mix element of your question on Europe, you're correct; it's still a relatively modest contribution, with the vast majority stemming from our U.S. crypto business. Nevertheless, we appreciate what we're observing, with tens of thousands of customers there, and will continue investing.

Thank you. Please standby for our next question. Our next question comes from the line of Patrick Moley with Piper Sandler. Your line is open.

Yes, good evening. Thanks for taking the question. I had one on index options. I observed it's referenced in the deck, but I didn’t hear it mentioned in the prepared remarks. Are you still planning to roll out index options later this year? Additionally, on the economics, I understand that index options are less profitable for brokers than multi-listed options, so I’m curious if you anticipate a potential cannibalization of current options trading by index options. When will you roll it out, and have you considered any commission charges on index options?

Yes, we have announced that we will be launching index options. This aligns with our goal of giving active traders access to the best tools and best value for their services. Index options are expected to launch in Q4, and we will also be releasing Futures, as mentioned previously. With any new product at Robinhood, we want to stand out in the marketplace both in terms of user experience and economics. We intend to offer competitive and profitable economics for the company on a segment basis, so Jason, would you like to add anything more specific there?

While we continue working with the team on the pricing structure for index options, we want it to deliver great value for customers as well as sound economically for us.

Additionally, we should note that index options trade around the clock and this is one reason for their growing popularity. We don't anticipate seeing a significant amount of cannibalization there.

Thank you. Please standby for our next question. Our next question comes from the line of Matthew O'Neill with FT Partners. Your line is open.

Yes. Hi guys. Thanks for taking my question. A lot of good ones asked and answered already. I was wondering though, since you are seeing such a clear inflection point in the MAUs and you provided incremental details around the growth there from card, both Gold and non-Gold, could you help parse the rest of the monthly active user growth, even just anecdotally? More crypto-focused or more options and equity-focused? Thank you.

Absolutely. There is an impact to MAUs when crypto interest drives activity, and we observed this in the quarter. When I consider the overall activity from that quarter, it was broadly-based with growth in equities, options, substantial crypto engagement, increased retirement accounts, Gold members, and net deposits. The uplift reflected is truly across the board.

Thank you. Please standby for our next question. Our next question comes from Ken Worthington with JPMorgan. Your line is open.

Hi, good afternoon. Thanks for taking the question. When we look at your promotions, they seem focused on attracting additional customer assets. Do you think such asset-focused promotions could continue over the intermediate to longer term as a business strategy? Any reasons why competitors might not be able to or might choose not to follow you with their comparables? Additionally, as we think about other behaviors you might target, are there others that promotions could sensibly target in the future?

I can start with that. First, we’ve invested in building strong data science and product analytics capabilities from inception, which I believe is becoming a key differentiator as AI becomes more important. We’re running these promotions closely tracked across cohorts and types of customer behavior, and we’re pleased with what we see. As Jason mentioned earlier, for the 1% matches, we’ve targeted a payback of under one year, while the 3% promotions span between two to three years. I'm encouraged that the 2023 cohorts have already paid off, and 2024 is looking good as well. We're inclined to be creative moving forward as there’s much room for leverage within this capacity we’ve developed.

We are thrilled that we are capturing share and winning assets against incumbents. Regarding your question about medium- to long-term durability, with our highly scalable platform, I don't see any reason why we can't continue to offer promotions like those, especially with the attractive paybacks we're currently realizing. As for whether competitors can match these promotions, we can think of several reasons why it may be challenging for them, including their respective cost structure or established base, making them unable to respond similarly. We genuinely enjoy these promotions here at Robinhood, and we’re pleased to be capturing market share.

Thank you. Please standby for our next question. Our next question comes from the line of Benjamin Budish with Barclays. Your line is open.

Hi, good evening, and thanks for taking the question. Just regarding competition, you highlighted that 25% of net transfers came from other brokerages. Can you discuss any characteristics of this customer cohort? How do they compare to your pre-existing customer base? Are they attracted by the high savings rate, by the deposit bonus? Are they active traders? Are they engaging in crypto? Any insights into this cohort would be appreciated. Thank you.

Yeah. The customers we’re bringing in are likely more similar than different to our existing user base. One thing to highlight is they're entering with average balances that are considerably higher than our historical customers, resulting in favorable quality of assets being brought in and customer activity. This trend is reflected in our comments regarding the payback periods on promotions, as we notice customers are engaging with our products in ways that produce revenue for us.

Thank you. I'm showing no further questions in the queue. I would now like to turn the call back over to Vlad for closing remarks.

Thank you for all your questions. We are thrilled with this quarter and the direction of our business. Looking long-term, we are positioning Robinhood to be a generational company that will benefit from the wealth transfer that is just beginning from older generations to Gen X and Millennials. Our ultimate goal is for all of our customers’ assets to be custodied at Robinhood and all their financial transactions conducted through us. You’re starting to see us make significant strides towards that goal. Thank you for joining us on this call and for your support.

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.