monday.com Ltd. Q2 FY2025 Earnings Call

Good day. My name is Bella, and I'll be your conference operator today. At this time, I would like to welcome everyone to monday.com's Second Quarter Fiscal Year 2025 Earnings Conference Call. I would like to turn the call over to monday.com's Vice President of Investor Relations, Mr. Byron Stephen. Please go ahead.

Hello, everyone, and thank you for joining us on today's conference call to discuss the financial results for monday.com's second quarter fiscal year 2025. Joining me today are Roy Mann and Eran Zinman, co-CEOs of monday.com; and Eliran Glazer, monday.com CFO. We released our results for the second quarter fiscal year 2025 earlier today. You can find our quarterly shareholder letter along with our investor presentation and a replay of today's webcast under the News & Events section of our IR website at ir.monday.com. Certain statements made on the call today will be forward-looking statements, which reflect management's best judgment based on currently available information. These statements involve risks and uncertainties that may cause actual results to differ from our expectations. Please refer to our earnings release for more information on the specific factors that could cause actual results to differ materially from our forward-looking statements. Additionally, non-GAAP financial measures will be discussed on the call. Reconciliations to the most directly comparable GAAP financial measures are available in the earnings release and the earnings presentation for today's call, which are posted on our Investor Relations website. Now let me turn the call over to Roy.

Thank you, Byron, and thank you, everyone, for joining us today. We are pleased to report another outstanding quarter for monday.com. Underscored by robust revenue growth of 27%, this performance reflects surging demand for our platform and the powerful value we deliver to customers across industries. Our relentless focus on efficiency is bearing fruit with Q2 non-GAAP operating margin of 15%, a testament to the strength of our business model and disciplined execution. We continue to make significant strides in our AI offering, expanding capabilities and accelerating innovation to empower teams and drive impactful results at scale. In Q2, customer adoption of our AI capabilities accelerated across the monday.com platform, with users performing 46 million AI-driven actions since launch, a strong indicator of increasing engagement and the growing value that our AI tools deliver. This quarter, we introduced monday magic, monday vibe, and monday sidekick, three AI-powered capabilities that mark a major step forward in our evolution from work management to work execution. These innovations enabled users to instantly generate workflows, build secure customer applications without code, and receive proactive, context-aware support, all within the monday.com platform. By embedding AI into the heart of our product, we're unlocking new levels of speed, flexibility, and productivity for teams across every industry. Let me now turn it over to Eran to walk you through some of our business highlights for the quarter.

Thank you, Roy. The enterprise continues to be our fastest-growing segment and the investments we have made in our offerings for these customers are bearing fruit. In Q2, we achieved a record number of net new adds of customers paying over $100,000 annually, further validating our traction with enterprise organizations. We are very excited to share that monday CRM has recently reached $100 million in annual recurring revenue, marking a significant milestone in our product’s rapid growth. This achievement underscores the strong demand for a flexible, customizable CRM platform and the trust our customers place in monday.com to power their business operations. Reaching this benchmark reflects our relentless focus on innovation, customer experience, and extending the capabilities of our CRM to address evolving market needs. We are very excited to build on this momentum as we continue to scale and deliver exceptional value to our customers. We recently announced the appointment of Harris Beber as monday.com's new Chief Marketing Officer, based in our New York City office. Harris brings over 20 years of marketing leadership from leading global organizations, most recently overseeing global marketing for Google Workspace and previously serving as CMO at Waze and Vimeo where he was instrumental in driving significant growth and innovation. At monday.com, Harris will lead our global marketing organization and drive forward our evolving strategy, focused on creative, human-centered storytelling to support continued dynamic growth. Additionally, we are pleased to announce the appointment of Adi Dar as our first Chief Customer Officer. In this important role, Adi will be responsible for overseeing the end-to-end customer journey, including adoption, retention, and long-term satisfaction. Adi will continue to serve as Chief Operating Officer until a successor is appointed. Lastly, we're happy to invite all of you to our upcoming Investor Day on September 17. As part of this year’s Elevate New York Conference, Investor Day 2025 will be a key moment to showcase our progress and ambition. Whether you join us in person or virtually, you'll hear directly from our leadership team as we highlight our achievements and outline our long-term vision, strategy, and product road map. We look forward to sharing deeper insights into our business and the opportunities ahead. With that, I'll now turn it over to Eliran to cover our financial and guidance.

Thank you, Eran, and thank you to everyone for joining our call. Q2 marked another strong quarter with solid revenue growth and improving efficiency. Total revenue came in at $299 million, up 27% from the year-ago quarter. Our overall net dollar retention was 111% in Q2. We now expect overall net dollar retention to be stable at 111% throughout fiscal year 2025. As a reminder, our net dollar retention is a trailing four-quarter weighted average calculation. For the remainder of the financial metrics disclosed, unless otherwise noted, I will be referencing non-GAAP financial measures. We have provided a reconciliation of GAAP to non-GAAP financials in our earnings release. Second quarter gross margin was 90%. In the medium to long term, we continue to expect gross margin to be in the high 80s range. Research and development expense was $59.2 million in Q2 or 20% of revenue, up from 16% in the year-ago quarter. Sales and marketing expense was $139.2 million in Q2 or 47% of revenue, compared to 51% in the year-ago quarter. Net income was $58.3 million in Q2 2025, up from $49.3 million in Q2 2024. Diluted net income per share was $1.09 in Q2 based on 53.3 million fully diluted shares outstanding. Total employee headcount was 2,867, an increase of 172 employees since Q1. We continue to expect to grow headcount by approximately 30% in fiscal year '25. Moving on to the balance sheet and cash flow. We ended the quarter with $1.59 billion in cash and cash equivalents, up from $1.53 billion at the end of Q1. Adjusted free cash flow for Q2 was $64.1 million and adjusted free cash flow margin was 21%. Adjusted free cash flow margin is defined as adjusted free cash flow as a percentage of revenue. We remain on target to meet our Investor Day goal of generating over $1 billion in free cash flow from fiscal year '23 to fiscal year '26. Adjusted free cash flow is defined as net cash from operating activities less cash used for property and equipment and capitalized software costs, plus costs associated with the build-out and expansion of our corporate headquarters. Now let's turn to our updated outlook for fiscal year 2025. For the third quarter of fiscal year 2025, we expect our revenue to be in the range of $311 million to $313 million, representing growth of 24% to 25% year-over-year. We expect non-GAAP operating income of $34 million to $36 million and an operating margin of 11% to 12%. For the full year 2025, we expect revenue to be in the range of $1.224 billion to $1.229 billion, representing growth of approximately 26% year-over-year. We expect full-year non-GAAP operating income of $154 million to $158 million and an operating margin of approximately 13%. We expect full-year adjusted free cash flow of $320 million to $326 million and adjusted free cash flow margin of 26% to 27%. Let me now turn it over to the operator for your questions.

Your first question comes from Kash Rangan with Goldman Sachs.

Nice results. But I'm wondering that you're pivoting to the enterprise, NDR and the enterprise is picking up, the growth rate in the second half is good. But you didn't take it up, typically, there is a bit of a raise to the second half expectations as you finish the first half. And the product customer adds for the new products also seem good. But it feels like you're waiting to hit an inflection point in the business where the new products and the pivot to the enterprise can stabilize the growth rate, maybe cause a bit of an inflection, but we're not quite there yet. I would love to get your thoughts. And also simultaneous with that inflection that you're looking to achieve, presumably, you're adding on a couple of new executives as well. So help us walk through all the puts and takes of the executive adds and the inflections that you're looking to achieve in your business.

Yes, this is Eran. First of all, as you mentioned, we have brought in our go-to-market leadership with Casey as our Chief Revenue Officer, Harris as the Chief Marketing Officer, and Adi Dar as our Chief Customer Officer. I believe these changes will significantly enhance our momentum in the upmarket sector, improve customer retention, and drive long-term expansion. Additionally, we are also focusing on a multi-product strategy. To remind everyone, while work management is well-established for enterprise customers and the higher end of the mid-market, our newer products like CRM, development, and service are primarily targeting the SME segment. We believe that this multi-product strategy will help us bundle and sell more offerings to the lower-tier SMB and mid-market segments, while the recent changes in our go-to-market team and other initiatives are aimed at expanding upmarket. Both strategies are contributing to ongoing revenue growth, although they are separate efforts that will eventually converge as we enhance our products and cater to high-tier customers.

Your next question comes from the line of Alex Zukin with Wolfe Research.

I guess maybe can you talk about the demand environment, the spending environment? And specifically, was there anything different with the linearity in the quarter, particularly with the large deals? And I have a quick follow-up.

Well, I can take the marketing or demand side. It's Roy. So we do see a lot of demand in different areas, like in CRM, that we can grow in. We shift things into mobile. But we do see some pressure from Google on the new side, though it's not something we didn't encounter before. So it's considerably small on that respect. And within like the CRM, we do shift a lot of resources into other areas, okay, like that we see a better place to grow. Like we have a big brand, and we monitor all the performance stuff, so we see areas that we are more efficient in, so we move resources there.

Yes, this is Eliran. To summarize what Roy mentioned, demand overall remains very strong. In the upmarket, we have achieved record net additions for customers spending $100,000. We are experiencing excellent traction and momentum with mid and upmarket customers. While there is some softness in the down market due to changes in the Google algorithm, we believe this is temporary. We are already taking proactive measures to address this and expect a recovery in the second half of the year. Our enterprise momentum, record additions of large customers, and continued expansion in our fastest-growing segments give us a lot of confidence, and we feel very comfortable about the second half of the year.

Perfect. In the context of improving enterprise traction, could you discuss billings? It appears they have decreased slightly sequentially, suggesting a deceleration. Is this still a valid forward-looking metric? Might we receive an RPO comment in the future if that serves as a better indicator of traction? Additionally, please elaborate on NRR, particularly how we should view its progression throughout the year.

Sure. So with regards to calculated billings, we said it in the past few times, this is an imperfect measure of our business. We look at ARR growth. This is something because I wouldn't want to take you through the accounting things, but we don't record the deferred revenue, only on a cash basis. And this is why we don't think it's the right measurement of the business. With regards to NDR, as expected, we said there's also a prior quarter debt; the lapping of the 2024 price increase is going to impact on NDR. This is why the number came down from $112 million to $111 million, and we believe this is going to be stabilized through the end of the year. The flip side of it is we see a strong momentum with gross retention that continues to improve and the ads of the customers in enterprise. Both the 50,000 customers and 100,000 customers, we believe, are going to contribute to the expansion of NDR at the beginning of next year.

Your next question comes from the line of Jackson Ader with KeyBanc Capital Markets.

A couple on sales hiring and productivity. So first, is sales hiring, either in the enterprise or elsewhere, building in line behind or ahead of your expectations as you headed into the year?

Yes. Jackson, this is Eran. So we ramped up pretty significantly in the first half of the year. Our main strategic areas were mostly sales and marketing, hiring across all fronts, people who specialize in the new products and also people that are kind of more focused on the enterprise part of the business. So it's pretty much in line with our plans, and we continue to hire more people in the second half of the year. And again, we see great inventory within our own customer base for more extension. We see healthy top-of-funnel movement with new customers. So overall there's more room to grow within the sales team, and we'll continue to hire coming into H2 and the beginning of next year.

Jackson, this is Eliran. I wanted to add to what Eran mentioned. We have Casey who joined us at the end of the previous quarter as part of the transition within the CRO organization. There is a strong emphasis on further improving and enhancing the sales organization throughout the end of this year and into next year.

Okay. All right. Great. That makes sense. And actually, I'm going to pivot over to CRM accounts. The net new number was pretty far below what you guys have typically been doing on a quarterly basis. What should we be reading into that? Is this kind of a new normal and you're going to land higher valued customers? Or was this more of a blip?

Yes. Jack, this is Eran. So first of all, when I said that we were very proud of monday CRM reaching $100 million in such a short amount of time, and it's a very significant milestone for us as a company, so we're very proud of that. I think some of it is seasonality. I mean traditionally, like we mentioned, Q1 is stronger in terms of net accounts added, and Q2 is relatively lower compared to Q1. But yes, part of it is the pressure, Eliran and Roy mentioned in the low end of the market. And also, part of our strategy in CRM, and we kind of repeated that several times, is landing bigger customers and having higher average contract value customers would drive a lot of focus on that front. We continue to improve the product and land larger customers. So I think that just the number of customers is not the perfect indicator of our progress within the product. Over time, we'll shift to a more telemetric that represents that.

Your next question comes from the line of Brent Bracelin with Piper Sandler.

I wanted to double-click into the CRM business; clearly, saw all the results here in Q2. But you took that from, what, $0 to $100 million ARR in 3 years. Maybe walk through, is this really resonating as a lower cost replacement product? Is it greenfield? How much of the business has been net new logos versus cross-sell? Any additional color on scaling that to $100 million here in, it looks like, about three, a little less than three years?

Cool. It's Roy. So I think our CRM is amazingly good for customers because it offers complete flexibility where they don't have those options in other CRMs, like they can really build whatever they want. So it's not just lower cost; it's the capabilities that come with it. There is a huge demand for that in the market, something that is simple, that people really love to use, and that they can actually build anything they want with it. Together with that, like we started with a more SMB-style audience. But as we add more capabilities like marketing and other stuff, it becomes a whole suite, and we move upmarket, like Eran mentioned.

Helpful color there. And just a quick follow-up. Vibe coding has really just taken off, lit a fire here. I know it looks like you guys are releasing your own kind of vibe coding tool. Can you just talk about, just given the launch of GPT-5 and now you're releasing video coding, what are some of the foundational models you're using, and how do you think about vibe coding and being differentiated for monday with its own vibe coding tools versus other vibe coding tools out there?

Roy again. So we're super excited about that. That's like an acceleration to our vision. We always wanted to have tools that give people the power to build whatever they want to control their own destiny. With vibe coding, we can give them that. It's tremendous, and we see the feedback we get now is amazing. I think we are in a very unique point with monday, because we've historically built everything on our platform that is very open. The platform is open, it's built out of building blocks, and it's all modular. That gives us a huge head start into building enterprise-grade applications that really work seamlessly. That is also connected to the rest of your workflow. Essentially, if you need an addition to monday, you can build your own building block or complete new app totally, but it's completely integrated. It connects with our integrations and automations, and everything works together. So we're super excited about this one.

Your next question comes from the line of Arjun Bhatia with William Blair.

Can I revisit the Google changes for a moment? I'm interested in how you are addressing the effects of AI search on customer acquisition costs. For work management, it seems like it might not be a significant issue since you are gaining traction in the upmarket and it's more sales-driven. However, I assume it affects service, CRM, and development to a greater extent. Eliran, how do you factor this into your guidance for the remainder of the year regarding how long it might take to address?

Okay. It's Roy. I can start, and then Eliran can complete. It's not something we didn't see before. It's not a huge impact that we see on performance marketing, and we have a lot of room to grow in other areas, and we can optimize for that. We're also doing a lot of AI implementation for what's been searched by people, and they find us there. Generally, it's not such a big impact right now, and we can mitigate it in many different ways.

Arjun, this is Eliran. So just as a reminder, when we look at guidance, it's grounded on the analysis of the latest market trends and the internal performance indicators we are seeing at the time of the guidance. As Roy said, we believe this is something that is temporary, and we're already taking actions to reallocate resources to places that we see greater return. In terms of the impact for the year, it's already baked into the guidance. We want to ensure that we deliver the most accurate and transparent outlook possible. This is something we took into account.

Okay. Understood. And then maybe this one is probably for you, Roy. But there are some of the AI capabilities that you rolled out. You talked about vibe coding just now, but they sound very exciting. I think you mentioned in your prepared remarks and the shareholder letter that you're transitioning from a system of work to a system of action. I'm curious what that means in terms of how customers are using monday, how they're implementing it, and the value they get out of it. How does that change with all these AI capabilities that you've now incorporated into the platform?

Yes. That's like another exciting thing. We released three different products. One is vibe coding, monday vibe, and then magic, which is building whole solutions on monday, and sidekick, which is doing the work for you. Essentially, we have all the context. We know everything people are trying to achieve because it's in monday—their project, their context, their history. We can create, with a single click, an AI that helps you accomplish actual work, not just help you manage work better. That's our vision. As AI progresses, we will progress with it, allowing us to perform more and more actual work for our customers. For example, instead of you figuring out which venue you want to create for an event, we find the venue for you and create a comparison. That’s actual work we can do for our customers. There are hundreds of those examples that customers are testing out, and it’s really cool.

Your next question comes from the line of John Baer with Morgan Stanley.

It's Josh. You're putting up some really strong growth numbers. I think at a high level, this year could be thought of as an investment year with 30% headcount growth, and that's slightly ahead of top-line growth, a bit of margin compression. As a result, obviously, a ton of product innovation, the go-to-market motion that's maturing and able to penetrate upmarket. So I'm just wondering, as we look ahead beyond this year, can we see the yield on these investments in the form of higher, more durable growth or more operating leverage? Just looking ahead? Any thoughts on how you'd characterize the future, if this is more of an investment year?

Yes, Josh. This is Eran. I can start. Definitely coming into 2025, we had a very concrete plan. On one hand, we had some catching up to do in terms of hiring for the sales organization because we saw so much potential within our existing customer base and a lot of demand. We're doing that. We will continue to grow into '26 but in lower percentages, I would say, for the sales organization. For the R&D part, we definitely saw a big opportunity in investing into R&D. Coming into this year, we put a lot of effort into building new AI capabilities into the platform and just working on each product. It was an area of investment. We're already starting to see fruits of all that investment in how people leverage AI, how people use the products, and going upmarket. We definitely see the fruits of that. I think '26 is going to be very different in terms of headcount growth. We'll be more efficient compared to '25, but we can expect to see a lot of investment results from what we've done in '25 feeding into '26.

Your next question comes from the line of Mark Murphy with JPMorgan.

Can you maybe just touch a little bit on some of the adoption you're seeing in terms of managed services as you're moving upmarket into these enterprise accounts? What are some of the most typical managed services that are being adopted by customers? And I just have a quick follow-up.

This is Eran. Can you just repeat—so you're asking about addition to the monday service product? Or were you referring to something else?

Some of what the add-on services are, like security, governance that are being adopted, yes.

Yes, got it. We have a bunch of add-ons that we offer to our customers in addition to the licenses we provide to them. Some of them are about creating more robust security or managed services and other parts of the business. Definitely, as we go upmarket, our customers want a little bit more customization to how they use monday. We offer that as part of our enterprise package. Yes, we see some growth over there as we go upmarket; it becomes more common for customers to attach one of these add-ons to their license. We see healthy growth, but it's pretty much in line with the growth we've seen in the enterprise segment.

Your next question comes from the line of Connor Murphy with Capital One Securities.

So I just want to go back to the SEO question. I understand the component where it's impacting net adds. But are you guys seeing more churn downmarket as well? Because I'm just—I’m looking at the NDR down 1%, upmarket is flat. I want to get a little more color on the downmarket customer base. I have one follow-up.

Connor, this is Eran. We actually see the exact opposite. Our gross retention is at an all-time high. It's not just on the enterprise part of the business, but across the customer base. We don't see any change in terms of churn or their ability to expand. It looks very good overall. As we mentioned, it impacts a little bit customer adds in the beginning of the funnel. Still, it doesn't change the churn profile.

Understood. And then you guys are sitting on, let's call it, $1.6 billion in cash, and you're generating over $300 million this year despite heavy investment. Can you just talk a little bit about your strategic priorities, whether M&A or potential buybacks just given where the stock is?

This is Eliran. Going forward, priority #1 remains on organic growth, and we would like to continue the investment in product and sales, investing in the platform, in mondayDB, in AI. We are also considering inorganic growth. Obviously, we now have multiple products that each one has its own roadmap, and we would consider M&A to further enhance and accelerate those roadmaps. In the long term, we might think about other return on investment methodologies, but for now, our main focus is organic growth as well as considering tuck-in M&A potentially.

Your next question comes from the line of Derrick Wood with TD Cowen.

Given the enterprise strength, how much focus do you have on going after larger multi-thousand seat opportunities, especially in light of the mondayDB upgrades? Just wondering if you could have some of these bigger, larger deals in the pipeline, especially as we get into the stronger enterprise seasonal spending in the back part of the year?

Yes. This is Eran. We're definitely also focused on landing larger enterprises. We have the end-of-the-year momentum. We also have our annual conference for our customers coming up in September, our Elevate Conference. So there's a lot of opportunity coming out of that traditionally. But at the same time, we also remain focused and committed to our mid-market and SMB segments. One of the big unlocks of the multiproduct strategy is we have more opportunity to sell bundles to our customers, doing more cross-sell, and giving them the full monday experience. I would say we're focused on both. We think we have opportunities as a company on both and will continue to invest this year and next year.

Great. As a quick follow-up, it’s interesting to hear that you're already getting AI consumption-related revenue, it sounds like people are burning through their allotted credits and coming back to purchase some. Should we be thinking that this kind of sets the stage to see bigger AI monetization next year on the heels of driving adoption this year?

It's Roy. Yes. We're driving more usage with value. Pricing it allows us to get the feedback and optimize the product to provide enough value that customers will continue to buy more. We're adding new AI products to build more solutions and workflows to consume those credits, and we expect to increase that over time.

Your next question comes from the line of Scott Berg with Needham.

First one is probably for Eran and Roy. With the release of magic, vibe, and sidekick, can those be kind of, I guess, new lead AI type functionalities or modules? Or do you see AI actions still as the lead AI functionality for the platform?

It’s a good point; there are two sides. One, within the platform after you've built the solution or you're working with it, that would be mostly sidekick, which does the work for you. When you want to build a new solution or solve something, you would use either magic or vibe. Magic essentially is where you ask it anything you want. You can go now and check it out at mondaymagic.ai. You type whatever you want. It’s amazing to see what customers ask it. They really put in their business problems in there and expect it to solve them. It does. It gives them a great solution for how they need to operate. It's even great to see how the AI thinks about it. It’s a wonderful way to get a reflection on your business and how you need to think about it. Then it provides a full solution, even creates a video explaining the solution. That’s the new way for us to give people the power to build the tools they need. It incorporates blocks and sidekick in there, hence it’s a compound value.

Got it. Very helpful. And then Eliran, regarding your guidance, probably another question on performance marketing and Google here. It looks like—yes, I know it looks like you flow through your profitability from Q2 for the back half of the year. But is your strategy and approach in the back half similar to the second quarter in terms of prioritizing more profitability over growth from those lower customers? Or should we view that guidance differently?

No, we apply the same philosophy on guidance as we did in Q1. Just as a reminder, we believe overall NDR will stabilize at 111%. We think customer growth will be in the mid-single digits. This might have changed. We also accounted for a small amount of monday service revenue with some minimal FX tailwinds. Regarding headcount, we stated it will decelerate in terms of the percentage of what we’ve done in H1. However, if there are opportunities for us, with everything we spoke about, such as performance marketing, and we see some recovery, we will make the investment if we deem it appropriate.

Your next question comes from the line of Rob Oliver with Baird.

There hasn't been a question yet on the partner network, so I wanted to ask about that. When you look into your partner network, how important of a role is that playing in the move-up market, $50,000, $100,000? Then anything relative to current pipeline of demand, if you're seeing particular verticals or geographies that are outperforming, or you see as opportunities as you look into the back half of the year and into '26?

Yes. We don’t see any particular segments that are overperforming or underperforming. As we said, we're going to continue and do performance marketing in H2 across all products, and we'll continue to invest in all of them. We don't see one particular segment, whether it’s SMB or enterprise or any specific business sector that’s overperforming or underperforming as we head into H2.

Your next and last question comes from the line of Taylor McGinnis with UBS.

On the revenue guide, for the second half, it implies growth stabilizing in the mid-20s. When we compare this to the initial base case framework of high 20s, low 30s growth, can you talk about which assumptions have changed relative to your initial expectations? As we look into next year, I know you're going to be lapping some of the bigger price increases, so is mid-20s still a good starting point? Or maybe you could just walk us through the puts and takes given the product roadmap and hiring ramps?

This is Eliran. With regards to next year, we are now working on the budget. We will provide guidance once we finish the year. For this fiscal year, we're operating in accordance with the playbook set at the beginning of the year, considering all of the items we've mentioned earlier: the stabilization of NDR at 111%, some uncertainties regarding the Google Search we want to address proactively, and our assumptions regarding headcount, hiring, and new product contributions to revenue. We took all of this into account as part of our guidance based on what we know today. We want our guidance to be responsible and prudent.

Awesome. Lastly for me, could you provide a bit more color on what in-period NRR looked like? Was it around the 111% trailing 12-month metric? It looks like some NRR pressure was among the smallest customers. When you talk about stability going forward in NRR, does that apply across all customer segments?

Yes, it's pretty much broad-based. We see strength in the mid-market and upmarket enterprise accounts. The reason for the deceleration from 112% to 111% is mostly the lapping of the 2024 price increase. Other than that, we didn't see anything that impacted NDR.

That concludes our Q&A session and today's call. Ladies and gentlemen, thank you all for joining. You may now disconnect. Everyone, have a great day.