Liveperson Inc Q3 FY2022 Earnings Call

Good afternoon ladies and gentlemen. Thank you for standing by. Welcome to LivePerson’s Third Quarter 2022 Earnings Conference Call. My name is Ryan and I will be your conference operator today. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. I’d now like to turn the conference call to Mr. Chad Cooper, Senior Vice President, Investor Relations. Please go ahead sir.

Thank you, Ryan. Joining me on the call today is Rob LoCascio, LivePerson's Founder and CEO and John Collins, Chief Financial Officer. Please note that during today's call we will make forward-looking statements which are predictions, projections, and other statements about future results. These statements are based on our current expectations and assumptions as of today, November 7, 2022, and are subject to risks and uncertainties. Actual results may differ materially due to various factors including those described in today's earnings press release and in the comments made during this conference call as well as in 10-Ks, 10-Qs and other reports we file from time to time with the SEC. We assume no obligation to update any forward-looking statements. Also, during this call we will discuss certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is included in today's earnings press release. Both the press release and the supplemental slides, which include highlights for the quarter, are available on the investor relations section of LivePerson's website. With that, I will turn the call over to Rob. Rob?

Thanks, Chad. Thank you for joining LivePerson's third quarter 2022 earnings call. I'd like to start off with an overview of the quarter. In Q3, revenue grew 9.5% year-over-year to $129.6 million and adjusted EBITDA of $9.1 million moved into positive territory. Our non-GAAP gross margins were 74%, up 200 basis points year-over-year. A few weeks ago, we hosted one of our customer events in San Francisco where many of our largest brands and key prospects were in attendance. Our partners and customers at Google, Verizon, Virgin Media, Priceline, and Elements Health gave attendees a private view into AI-powered digital customer engagement journeys and strategies they have implemented with LivePerson to date. These events offer us a clear lens into our customers' thinking and help inform our product roadmap in the future. There were three broad strategic themes that were validated by our largest brands at the event that I want to share with you. First, I was struck by the fact that meeting after meeting, our customers told us that they now consider us a tier-one provider. The CTO of one of the largest airlines in the world told me that out of their thousands of systems that they have in their company, only a small group is considered tier-one, including the reservation system, and that we are now one of those systems. Where we are now seeing enterprise customers shifting 30%, 40%, 50% of contact volume to us, we really validate what no other company has done in our space. We took something that for 50 years was ingrained in people that we need to pick up the phone for customer care, and we created a clear alternative to traditional voice. Being considered a tier-one provider serves as validation of how we execute against our long-term vision to become the mission-critical customer engagement partner for brands across a multitude of industries. Brands now trust their businesses to us more than ever before. We expect this trend as well as conversational volumes to continue to grow in the months and years ahead. This new reality is an exciting opportunity that brings heightened responsibility and expectations. One highlight when we release our voice this year will be a voice AI enabling consumers to converse with a machine through natural language for a curiously human experience. Second, brands have validated our vision for how they use AI and automation in the enterprise. Our brands are adopting AI thanks to our tools and expertise and continuing to build their teams of AI specialists to support the prominence of the function across their business. As discussions we've had with one of our major banking brands exemplify this trend, they're seeing increased value in our platform as they deploy additional automation. For them, an increasing number of brands LivePerson is much more than a chatbot company that helps them connect to multiple channels; our leading AI, automation and product roadmaps are helping them innovate and operate the most sophisticated AI-driven digital customer engagements in the markets today. Finally, brands want us to be the platform where they integrate key systems that create a unique, powerful customer engagement hub. One of our largest telecommunications customers is using our platform as that central hub, creating integrations with other digital legacy systems in order to deliver a rich consumer engagement experience. The acquisitions of Tenfold and VoiceBase are part of this long-term strategy to move us into the central role. I also want to note that Google joined us on the main stage of our conference to highlight our partnership around conversational commerce use cases, which focus on the work we're doing together to unlock the opportunity for conversational ads and search. We've already kicked off engagements with several of our enterprise customers that are seeing really compelling results in conversion rates. We expect to have more exciting updates with this partnership as we move from beta to general availability with Google in the coming quarters. Overall, it was a terrific event and a strong validation of our AI-driven approach and the product roadmap for us to continue to build on as a tier-one platform to serve as a central customer engagement hub with the world's leading brands. Now let's dive deeper into our results for the quarter. As we outlined in our Q4 call, with the changes in the market, we focused during fiscal year 2022 on three actions to optimize faster revenue growth: new logo growth, expansions with existing customers, and our strategic partnerships initiatives opening our AI so it can exist on other platforms and strengthening the AI platform to drive enhanced value to customers. While we do not divulge bookings numbers, I would like to highlight that we have a strong booking score in Q3 evidenced by our newer quota carrier representatives starting to gain traction. In fact, we achieved the highest booking number since Q1 of 2021 after netting out the COVID testing revenue. Starting with customer wins and logo growth, we signed seven-figure deals and achieved a total deal count of 86 deals in the quarter. As brands look for a strategic partner for AI-powered digital customer engagement, they are increasingly recognizing LivePerson's expanded value proposition. This holds true even under the current economic conditions because they recognize the cost savings they can achieve with our platform. As I turn to some of our top customer wins for the quarter, some of which include the most innovative brands in the world, let's start with new logos. We won 29 new logos in the quarter. While the number of new logo deals is down year-over-year, the dollar bookings on the new logos are up 20% year-over-year. Additionally, the number of enterprise new logos is up 14% year-over-year. These new logo wins provide the foundation for the upsells of tomorrow, and we are excited to have these customers on board. They expand our presence in the market and bring us the opportunity for significant expansion dollars. One of the largest new logo wins the quarter was Money Mart, an operating unit of Momentum Financial Services Group and an alternative lending provider operating across North America. In addition to being an amazing new brand for LivePerson, in just 59 days after signing with us, Money Mart was able to launch an entire digital service servicing strategy that included messaging, automation, agent workspace, call-to-messaging deflection, and voice-based AI analytics. Another large new logo win was a three-year seven-figure TCV deal with the UK's largest auto insurance provider, and they have over 14 million members. They plan to use our software to offer messaging with automation and IVR deflection so that they can reduce costly phone calls and improve customer satisfaction. This was a year-long RFI process where we beat a number of other vendors in the healthcare vertical. We signed a new logo deal with a provider of public healthcare programs. Our Tenfold integration platform gives their sales and service representatives the full context of each customer in real time. This enables their agents to quickly identify who's calling members or providers to deliver the best customer experience while also reducing handle time quickly, creating new cases, and ensuring analytics are captured back into the ERP and CRM systems. It's also interesting to note that we partnered with one of our channel partners, which enabled us to avoid a lengthy procurement process. Expect this new partner, who is a heavy Cisco partner, will open the door to jointly pitching a new set of logos and potential customers and partners. We also had a strong quarter with upsell and renewals. Our growth reflects the trends of brands moving to us being a tier-one provider. Chipotle, the largest fast-casual dining chain by sales in the U.S., renewed and expanded its partnership with us. This deal highlights the power of LivePerson's combination of best-in-class AI, cloud platform, and expertise in professional services. Chipotle leverages a concierge bot named Pepper to support its 3,000 U.S. restaurant locations, helping them deliver curiously human-feeling and personalized experiences on a national scale. I'm also happy to announce a two-year renewal and expansion with the real; our second-largest deal in the quarter, the real renewed as an automation-as-a-service customer as we continue to deliver an enormous amount of value in designing and executing the customer strategic roadmap for conversational AI and conversational commerce. We achieved a renewal upsell with a top U.S.-based insurance company. This insurance company is focused on digital customer journeys and expanding their current success in automation to new lines of business like roadside claims. Also, in the healthcare vertical, we signed a seven-figure multi-year renewal with the largest Fortune 20 payers in the U.S. We established a relationship about 18 months ago and just one line of business on web messaging. We're now deploying our platform in the remaining six lines of business to include additional messaging channels like in-app, Apple Business Chat, and Google Business Messaging. Finally, we signed a renewal with the world's largest cosmetic company. They are looking to expand their digital footprint, invest in deflection activities around voice-to-messaging, and improve personalization on their brand's websites. We are deployed in 60 of the company's 37 brands and will continue to use us for both customer care and commerce. As we discussed recently, we're working on a greater open platform strategy to address what we see as a larger incremental addressable market opportunity for us by our customers, partners, third-party developers, and internal teams. This will enable acceleration of new areas within our customer base. As an example, our voice-based transcription product is currently available across several third-party marketplaces, including Twilio's Flex Marketplace. While we are in the early stages of development, we're encouraged by the fact that revenue from the voice-based product on Twilio has grown more than 100% in the past six months with no direct sales or marketing investment. In Q1, we plan to launch versions of the LivePerson app marketplace and build on the pipeline momentum from Solonus and Affinity, who jointly uncovered nearly 20 opportunities for us in Q3, helping to contribute to our pipeline in Q4 as we eye a formal launch for the app marketplace in the next three to four months. We have a strong pipeline of revenue share program partners, including Tealium, Medallia, and Quantum Metric. We see partnerships as a major untapped growth lever for LivePerson and are dedicating appropriate resources to this very scalable opportunity. Finally, I'd like to also take the opportunity to talk about our new Chief Marketing Officer, Ruth Zive. Ruth is a three-time enterprise software CMO, most recently serving as CMO of a chatbot company called Ada, where her leadership helped transform the company through triple-digit growth. At LivePerson, Ruth's priority is to grow scalable, measurable, and predictable world-class demand generation while driving operational rigor. So we want to welcome Ruth to the team. We're really excited to have her here. As I mentioned at the top of the call, we continue to execute our profitable growth plan announced at the start of the year, and we're on track to deliver double-digit adjusted EBITDA margins in Q4 and sustain these margins with a focus on free cash flow in 2023 and beyond. And with that, let me now turn the call over to John to discuss the detailed financial results. John?

Thank you, Rob. In the third quarter, we continued to advance the profitable growth plan we launched at the start of this year. To that end, revenue grew 9.5% year-over-year to $129.6 million, which was an improvement relative to the expectations we'd set last quarter. The upside relative to prior guidance was primarily driven by Wild Health's continued overperformance and by the accelerated timing of upsells and professional services deliverables. The net effect of revenue upside and continued cost reductions translated to $9.1 million in adjusted EBITDA. Non-GAAP gross margins of 74% were at the top of our guidance range and were attributable to cost reductions and the focus on scalable high-margin sources of revenue. In order to close out the year with a balanced approach to profitability and growth, we continue to optimize our cost structure in the third quarter. Restructuring during the third quarter is expected to reduce our expense run rate exiting the year by significantly more than the actions we've taken in the first half of the year, thereby advancing our goal of double-digit adjusted EBITDA margin and positive free cash flow for 2023. For perspective on the pace and magnitude of the P&L transformation year to date, note that when we launched our profitable growth plan at the start of the year, we were burning well over $30 million in free cash flow per quarter and forecasting that number to grow. Over the medium to long term, we expect these cost reductions, coupled with the emphasis on scalable high-margin revenue sources, to better align sales and marketing, research and development, and general and administrative expenses with best-in-class industry benchmarks. Turning to our reporting segments for the third quarter, within total revenue, B2B grew 10% year-over-year. Revenue from hosted software was down 4% year-over-year, and professional services grew 92% year-over-year. To elaborate on the underlying business drivers consistent with the expectations we shared last quarter, COVID-19 testing revenue from our longstanding enterprise customer, City, dropped to zero in the third quarter. Excluding the impact from COVID-19 testing revenue and pandemic-driven variable revenue, B2B grew 25% and hosted software grew 12% year-over-year. As for professional services, continued high growth was attributable to the eight-figure healthcare deal we signed in the first quarter, which is focused on automation as a service for healthcare delivery companies. We expect elevated professional services revenue to continue in the fourth quarter. From a geographic perspective, U.S. revenue grew 12% year-over-year and represented 69% of total revenue, while international revenue grew 4.5% year-over-year and represented 31% of total revenue. Finally, revenue from the consumer segment increased 3.7% year-over-year. In the third quarter, we continued to build on our go-to-market momentum. Our platform's ability to increase operational efficiency and reduce costs is resonating with both our customer base and new logos, especially in the present macro environment. In addition, as Rob described, customers are increasingly viewing AI and automation as fundamental to delivering a seamless and personalized digital experience across the consumer journey. From this perspective, our customers are looking to us as a strategic long-term partner and tier-one service provider, which we expect will drive growth and usage of our platform in the future. Today we facilitate and manage approximately one billion conversational interactions each month, making us one of the most scaled conversational AI platforms in the world. To this end, in the third quarter, we signed seven, seven-figure deals, four expansions, and three new logos. Note that cross-selling VoiceBase was once again a key part of the value proposition that landed one of the seven-figure new logos. While the aggregate number of new logo deals was down year-over-year, aggregate new logo deal values were up 20% year-over-year, driven by a 14% increase in the number of enterprise new logos. Considering our focus on the enterprise, we see these results as indicators that we continue to ramp reps and rebuild go-to-market momentum. Enterprise new logos typically result in a higher initial deal value and greater strategic expansion opportunities, translating to significantly higher lifetime value relative to new logos down-market. More broadly, in terms of aggregate deal value across both new logos and expansions in the base, the third quarter was our strongest since the first quarter of 2021, normalizing for the impact of COVID-19 testing. RPO increased 16% year-over-year to $431 million, driven by several large enterprise renewals and upsells. Average revenue per customer improved to $675,000 this quarter, up 18% year-over-year. Conversational cloud messaging volume grew 25% year-over-year, and AI-based messaging volume grew 11% year-over-year. Consistent with expectations we shared last quarter, net revenue retention was just below our target range of 105% to 115%, attributable primarily to lower pandemic-driven variable revenue from gain share and lower revenue from City's COVID-19 testing program. In terms of guidance, we expect continued outperformance by Wild Health and elevated professional services in the fourth quarter. Considering those expectations, coupled with more upsells and early renewals in the third quarter than previously expected, we are raising revenue guidance for the full year. We now expect revenue in a range of $517 million to $521 million or 10% to 11% year-over-year growth, and improvement to the midpoint of approximately $6 million. For the full year adjusted EBITDA, we are reaffirming our previous guidance range of $1 million to $10 million. The wide adjusted EBITDA range at this time in the year reflects the potential for continued revenue upside from Wild Health and elevated professional services, as well as the potential for lowering operating expenses from additional P&L optimizations. The implication for revenue in the fourth quarter is a range of $124.5 million to $128.7 million, or approximately 1% to 4% year-over-year. The expected sequential decline in revenue is primarily attributable to early upsells with one-time components that were pulled forward into the third quarter from the fourth quarter, and attributable to the less predictability of the magnitude of continued upside from Wild Health and accelerated professional services deliverables in the fourth quarter. As for adjusted EBITDA in the fourth quarter, we expect a range of $14.9 million to $24 million, or a 12% to 19% margin to the midpoint of revenue guidance. Finally, we are expecting non-GAAP gross margins to be in a range of 72% to 74%. Before taking questions, I'd like to emphasize several key themes for 2022 and how solid execution on our profitable growth strategy is positioning us for 2023. In the third quarter, we continued to observe indicators of increasing sales momentum, including a 14% year-over-year increase in enterprise new logos and a 20% year-over-year increase in aggregate new logo deal values. We also expanded within our customer base, which increasingly regards us as a long-term strategic partner and tier-one service provider on a level we haven't seen in the past four quarters. Critical inputs to those results were increased traction with strategic sales and technology partnerships and robust cross-selling of products within our installed base from newly acquired assets. This sales momentum, coupled with the optimization of our cost structure and a focus on scalable high-margin sources of revenue, reflects durable changes to our operating model that position us to generate double-digit adjusted EBITDA margins and positive free cash flow in 2023. And with that operator, we can proceed to Q&A.

Questions and congrats on a nice quarter here. Maybe we start with just the guidance and just can you provide a bit more color and help us understand the one-time components you discussed from some of the early pull-forwards that we won't see repeated in Q4?

Hi, Ryan. Yeah, those one-time components relate to an acceleration of recognition revenue for usage true-ups. So in other words, the customers who we renewed and upsold early in the third quarter were well ahead of the usage that was contractually committed and needed to essentially raise the overall cap. That was the nature of the episode going forward and accelerated recognition in the third quarter.

Yeah, that makes complete sense. All right, thanks for clarifying that for me. And then it's great to continue to see some of the early performance from Wild Health. Can you just help us understand where that's coming from, whether it's sort of on the B2C side or in the B2B initiative? And then as that business continues to grow as a mix of revenue, I think you called out sort of overperformance there could create some wider variability on the adjusted EBITDA performance. Can you help us sort of sync up what success in Wild Health translates to in terms of adjusted EBITDA or could we see downward pressure I guess.

I was just going to make a comment on adjusted EBITDA, just on that specific financial point. I think broadly, as we discussed previously, Wild Health has a lower overall gross margin, but we have now greater insight into ways we can expand that gross margin to be more consistent with LivePerson's targets over time. So we don't expect it to necessarily get worse but to improve over time.

And then we're seeing good traction on the B2C side right now and some B2B, but there are a number of people signing up for the service. We are also onboarding medical professionals on the overall platform. So it's a combination of both right now.

Excellent. Maybe just one more from me, just on broader rep productivity. It's good to see some of the gains there and improvements despite an uncertain macro environment. I'm curious as you're looking out into planning for 2023, can you talk about how you're feeling about sort of sales quota capacity at the moment in quota coverage and how we should think about sort of incremental investments in sales headcount? Thanks.

Yeah, Ryan, I think that where we stand today, we do continue to see progress on ramping the reps we have. We have more ramping to go as we exit the year and think about 2023. Big picture, we started 2022 with mid-fifties numbers in terms of total ramp reps, and we think that number will be mid-eighties as we start the year in 2023 with a healthy number who are on ramp shortly thereafter. In terms of investments, they will flow in 2023 in light of a broader overall profitable growth framework. We have certain targets for overall free cash generation and EBITDA margins, and we'll make investments accordingly.

Hi, thank you for taking my question. And yeah, nice job on the quarter. John, given the strong 3Q performance, I was surprised to see that the profitability guidance looks like it remains pretty much unchanged here. Could you just run through some of the puts and takes there and why that is?

Yeah, some of the upside relates to the one-time components I described at the top of this call. Other components relate to our sort of expectation for continued outperformance going forward but less predictability in terms of Wild Health and also in terms of our ability to accelerate certain professional services deliverables. I think the other component on the cost side is that as we continued to assess the business, we felt that there would be greater impact on our long-term profitable growth strategy by staying the course and delivering on certain product roadmap deliverables on time with our customer base than simply cutting costs and dropping those to the bottom line. So it's a balanced approach we're taking here with respect to taking costs out of the business but not harming growth opportunities as we look forward.

Okay, great. Thank you. And then I believe your international business, which is mainly Europe, was up about four and a half percent, if I recall correctly. Could you just talk about some of the dynamics you're seeing there? It seems to continue to underperform in the U.S.

Yeah, we are looking at sort of rethinking the investment there and how we make some changes to accelerate the growth. Obviously, we feel the markets are still very strong for our products. But we think the European market has a lot of opportunity, and we believe we need to do a little bit better focused approach. I don't have anything specific to talk about right now. I think a lot of it's around execution and leadership, but we're basically rethinking that and how we grow it at the same rates that we'd see in the U.S. There's definitely demand there.

Thank you. Thanks for taking my question, Rob. Some of your peers in platform contact centers talked about macro pressure. So wondering what are you seeing among your enterprise base or yeah, among your installed base? Are you seeing any sort of macro pressure or any kind of impact to your business?

Not right now. I think what I talked about this quarter is becoming a tier-one provider tells the story we've wanted to tell, which is that it's not about the channel communication. We are not just a messaging channel to replace voice. It's about being an AI automation company. When you look at the value of our platform, about 75% of the billion conversations we carry have some form of automation in them. When I was talking about that, I sat down with that CTO from one of the largest airlines in the world, and he talked about the automation capabilities being critical because we're automating at a very high scale things that normally needed a human agent. It wasn't about moving voice calls to messaging. That was inning one many years ago. It was about moving that to automation so we can scale to have more conversations. So I feel very good about the demand in the market because we're driving costs out of businesses.

That's great. And then how do you characterize the competitive landscape right now?

It's really you still have the voice providers that are out there. And then you've got the CRM players like Salesforce. Once again, we're integrating with them. One of our strategies now—we've been sort of a walled garden, although our platform's open—you can say other AI can live in it. We're very integrated into things. I think we're really thinking now about how we take our AI and run it over Genesis platform. How do we run it over Five9? How do we run it over these voice platforms? We see them more as cooperative. For example, Twilio obviously has a contact center product called Flex where our voice-based product is integrated into some of the Twilio flows. We're starting to evolve beyond the walled garden into more of a platform for AI.

Hi, good afternoon. Congrats again on the quarter and then thanks for taking my questions. First question for me is, is there really any sort of change in the go-to-market focus for your enterprise sales force at this point? Is there more of an incentive to focus on these larger customers just given the higher payoff to begin with and the potential upsells over time? Just curious if there's been any sort of involvement in that strategy given the current macro conditions.

No, it's been the same. If you don't remember, we kind of went up to the enterprise and we kind of abandoned the small business market. We've got the mid-market and the enterprise that we're focused on. We do our best work there. It's very hard to sell seven- and eight-figure deals into those customers. We do it well; we're renewing them well, and we're becoming critical like a tier-one provider for them. I think as a company, we get most excited when we have the largest banks in the world, telcos, and airlines saying we are critical now. You're carrying 40%, 50%, 60% of all of our customer engagement. We want you guys to be even better. So I just think that we really get excited about that.

Understood. That's helpful. Final question for me geared towards John: in terms of the double-digit adjusted EBITDA margin target you've set for 2023, is there any sort of needed growth to achieve that sort of target or what are some of the considerations that give you confidence around that double-digit adjusted margin target?

Sure, there's certainly a revenue component, but as we think about the range of double digits that are possible—even in a low-growth scenario, we'd still be able to achieve that goal we've set for ourselves.

Hey guys, thanks for taking my question and congratulations on the results. I might have missed this, so I apologize if it was already discussed, but just wondering about the installed base and expansionary growth. Just wondering if there's any... during the pandemic there was some pull-in from your peers in terms of spend. If there's any type of shelfware you'd be worried about or monitoring going into 2023? I have a follow-up.

No, I wouldn't say we have anything other than the sources of revenue that we've discussed previously. From the pandemic, primarily if one particular customer—Citi Group—and the pandemic accelerated variable revenue in our gain share portfolio, which has both largely rolled off the P&L in the first half of 2022. As John mentioned, we accelerated some pull into Q3 because of customer usage. There’s not really any shelfware in the customer base per se.

That's a great follow-up there. Thanks, Rob, for the clarification. Solid to have new bookings and installed base growth heading into next year. My second and last question is just on the defensibility of LivePerson's technology. It seems like this is Tenfold-led, but adding LivePerson to these larger platforms. I'm wondering if you could just comment on the defensibility of the technology as a hedge against any long-term risk of consolidated technology or consolidated spend of the LivePerson functionality as you attach yourself to these larger strategic mandates.

Yeah, I think there's two parts to it. One is how do we become more of a platform. In the past, our partners have been BPO partners and techniques but we're seeing the greatest opportunity with Salesforce and Twilio and technology integrations because our customers want us to be more of this hub. We control the front-end experience to the consumer. We've got the AI rails to automate behind that. There's a lot of systems that need to get integrated to make that a high-quality automated experience. I think our role becomes more important as we become this hub in the system of our customers' business. The second part is we've got some of the best AI technology in the world. I know that it sounds like I may be drinking my own Kool-Aid, but we just had this conference, and I met with customers. They look at everyone and their potential competitors who say they have AI, and they choose us. We've got a lead because of our AI and we’re trying to build a trillion-dollar AI company that can automate business processes.

If I could follow up, Rob, sorry on that. Are there specific pools of spending that when you say they're choosing us for AI, it sounds like there could be some bake-off component to that. And, relatedly to your prior comment about LivePerson possibly becoming a hub in that context of AI, are we going to consider LivePerson a system of record; that terminology in terms of this digital customer engagement strategic motion?

Yeah, we say digital customer engagement powered by AI. The advances in AI technology in the last 24 months are quite amazing. AI and conversational AI will become the focal point for everything. For instance, even content management; there's the ability today to generate content on the fly based on AI, based on patterns of consumers. You can build an image now dynamically and render it in pixels without a JPEG. You can tailor a conversation based on consumer intent. Our AI machine will ultimately be about a business saying we want to do something with consumers. We want to target them and provide the right content and conversations with them. We're in a prime position to execute that.

Excellent. Thanks for the answers, guys.

Thank you. Ladies and gentlemen, we have reached the end of our call today. I will now turn the call to Rob LoCascio for closing remarks.

So thank you so much for your time today. I want to iterate our focus on leading in the AI and automation space and delivering profitable growth is obviously a focus of ours. We put that out, I think it was February, when we said we were going to head towards that. We were burning over $30 million a quarter at that time, and now we're heading towards generating cash, a positive EBITDA, which was our goal, and we did it very fast. A lot of other people in the space are starting their restructurings now, and they're going to have to go through all that into 2023. Our goal was to get it all done in 2022. It gives us a fresh P&L and focus in 2023 to drive growth and profitable growth. Once again, I want to thank everyone in the company for their hard work in Q3. We did a lot of restructuring that ultimately drove the results we have today. I'm very excited that to become a tier-one provider is something we've dreamt of four and a half, five years ago. No one's ever done it. We've created an alternative to traditional voice, and that’s a testament to everyone's hard work, even in these very difficult times. Looking forward to next quarter and thank you to our shareholders and employees for all the great work. See you next quarter.

Thank you. The conference of LivePerson has now concluded. Thank you for your participation. You may now disconnect your lines.