Earnings Call Transcript - MNDY Q1 2026

Operator, Operator

Good day. My name is Dedra, and I will be your conference operator today. At this time, I would like to welcome everyone to monday.com's First Quarter Fiscal Year 2026 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.

Byron Stephen, Vice President, Investor Relations

Hello, everyone, and thank you for joining us on today's conference call to discuss the financial results for monday.com's first quarter fiscal year 2026. Joining me today are Roy Mann and Eran Zinman, co-CEOs of monday.com; Eliran Glazer, monday.com's CFO; and Casey George, monday.com's CRO. We released our results for the first quarter of fiscal year 2026 earlier today. You can find our quarterly shareholder letter, along with the investor presentation and a replay of today's webcast under the News and 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.

Roy Mann, Co-CEO

Thank you, Byron, and thank you, everyone, for joining us today. monday.com delivered a strong start to 2026. Q1 revenue grew 24% year-over-year reflecting sustained demand for our platform as enterprises consolidate their work infrastructure. We generated a record $49 million in operating profit, demonstrating that our growth is increasingly efficient. Adjusted free cash flow margin expanded to 29%, underscoring the financial durability of our business model. Gross retention continued to improve in Q1, reaching historical highs for the company, reflecting how deeply monday.com is embedded in how our customers run their businesses. Enterprise momentum continued to build with 42% of ARR coming from our customers with over $50,000 in ARR. A record number of new customers with over $500,000 in ARR and average contract values continue to expand, reinforcing that the consolidation of work infrastructure onto monday.com is a durable enterprise-led trend. The market is also responding to our AI product. Approximately 3% of our net new ARR in Q1 was driven by AI, a figure we expect to grow as our AI offerings expand and mature. We are also seeing the benefits of AI play out in monday.com itself. Since 2025, AI has driven a 32% increase in our output per developer and a 38% reduction in product time to market. AI gives our engineers the bandwidth to be more rigorous about the architecture, edge cases and long-term maintainability. The result is a team that ships more and breaks less. We believe this is an early but meaningful signal of what AI-native engineering looks like in practice, and we intend to keep pushing on that frontier. Now let me turn it over to Eran to walk you through some of the significant progress we've made in our AI-driven products during the quarter.

Eran Zinman, Co-CEO

Thank you, Roy. At our Investor Day last September, we laid out a fundamental shift in how we see monday.com: not a platform that helps teams manage work, but one that actually does the work for them. Last week, we took the most significant step in that journey, changing our core offering from monday Work Management to the monday AI Work Platform. This is not a feature release or a rebrand. We have rearchitected the core of our platform around a single belief that work should be orchestrated between humans and AI agents at scale from a single system of record. AI agents that execute work, flexible software that adapts to how teams operate, and enterprise-grade governance all grounded in monday DB as a single source of truth that give AI the context to drive real outcomes. This quarter, we took that foundation further with monday DB 3.0, delivering a 100x increase in scale from 100,000 items for our boards to over 10 million, with high-performance, low-latency execution designed to accelerate AI adoption rather than constrain it. A stand-alone AI tool that can automate a task, monday can run an entire operation. And with more than 250,000 customers already running their work in monday.com, we have a data advantage that no point solution can replicate. Alongside the platform launch, we're making an equally important change to how customers pay for monday. We recently introduced a new seats-plus-credits pricing structure for new customers, moving to consumption-based pricing that aligns what customers pay with the value AI actually delivers. As AI agents take on more work across organizations, revenue expands naturally without requiring additional seat purchases. We plan to allow existing customers to opt in to this new model with enterprise customers receiving complementary AI packages to support adoption at scale. In addition to that, we are excited to announce our agreement to acquire One AI. Their team has spent years solving one of the hardest problems in enterprise AI, making voice agents that actually work in production environments. With this acquisition, we are bringing native voice capabilities directly into the AI Work Platform, extending the ways agents can engage with customers and teams. We're not managing monday.com as a company defending its position. We are rebuilding it as the company that defines what an AI Work Platform means for businesses. Q1 was a strong step in that direction. We remain focused on execution, and we look forward to demonstrating continued progress throughout 2026. With that, I'll turn it over to Eliran to cover our financials and guidance.

Eliran Glazer, CFO

Thank you, Eran, and thank you to everyone for joining our call. Today, I'll review our first quarter fiscal year 2026 results in detail and provide updated fiscal year 2026 guidance. As Roy mentioned, we have had a strong start to 2026. Total revenue in Q1 came in at $351 million, up 24% from the year-ago quarter. Our overall NDR was 110% in Q1. We now expect overall NDR to slightly decline by the end of fiscal year 2026. As a reminder, our NDR 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. First quarter gross margin was 89% compared to 90% in the year-ago quarter. Research and development expense was $78.4 million in Q1 or 22% of revenue, up from 19% in the year-ago quarter. Sales and marketing expense was $158.2 million in Q1 or 45% of revenue compared to 48% in the year-ago quarter. General and administrative expense was $28.6 million in Q1 or 8% of revenue compared to 9% in the year-ago quarter. Operating income was $49 million in Q1, up from $40.8 million in the year-ago quarter, and operating margin was 14%, similar to the year-ago quarter. Operating margin in Q1 had an approximately 190 basis points negative FX impact, mainly from the appreciation of the Israeli shekel compared to the U.S. dollar. Net income was $56 million in Q1 compared to $58.4 million in the year-ago quarter. Diluted net income per share was $1.15 in Q1 based on 48.9 million fully diluted shares outstanding. Total employee head count was 3,211, an increase of 56 employees since Q4 2025. For the remainder of fiscal year 2026, we expect head count to stay largely flat, reflecting the productivity gains AI is already delivering across our organization. Moving on to the balance sheet and cash flow. We ended the quarter with $1.21 billion in cash, cash equivalents and marketable securities compared to $1.67 billion at the end of Q4 2025, reflecting $553 million of share repurchases executed during the quarter. As of the end of Q1, approximately $182 million remained available under our existing share repurchase authorization program. Adjusted free cash flow for Q1 was $102.8 million, and adjusted free cash flow margin was 29%. We now estimate that the accelerated share buyback executed during Q1 will reduce full year 2026 adjusted free cash flow by approximately $20 million. 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. Let's now turn to our updated outlook for fiscal year 2026. For the second quarter of fiscal year 2026, we expect our revenue to be in the range of $354 million to $356 million, representing a growth rate of 18% to 19% year-over-year. We expect non-GAAP operating income of $46 million to $48 million with an operating margin of 13% to 14%, which assumes a negative FX impact of 100 to 200 basis points. For the full year 2026, we expect revenue to be in the range of $1.466 billion to $1.475 billion, representing growth of 19% to 20% year-over-year. We expect full year non-GAAP operating income of $185 million to $191 million, with an operating margin of approximately 13%, which assumes a negative FX impact of 100 to 200 basis points. We expect full year adjusted free cash flow of $280 million to $290 million with adjusted free cash flow margin of 19% to 20%, which assumes a negative FX impact of 100 to 200 basis points. Let me now turn it over to the operator for your questions.

Operator, Operator

The operator provided instructions for the question-and-answer session. Our first question comes from the line of Raimo Lenschow with Barclays.

Damon Kogan, Analyst (Barclays, on behalf of Raimo Lenschow)

This is Damon Kogan for Raimo. Can you help us understand the new updated NDR guidance? As I think about the Q1 results and the full year guide, it seems like stabilization throughout the business and then I look at the NDR guide and prints across your cohorts. It just seems like there's more stability in results than maybe the guide. Any help there would be great.

Eliran Glazer, CFO

This is Eliran. Thank you for the question. So there is a lot on the retention and expansion side that we are very positive on. Gross retention is at historical highs. We're still seeing double-digit fee growth year-over-year in our mid-market and enterprise customers. Thirty-four percent of our customers with over $50,000 ARR have adopted more than one product; it was 29% in Q4. So we're seeing a lot of positive signs. As a reminder, we are lapping pricing actions from 2024 which increased our NDR by about 12%. We're going to lap this at the end of Q2, and we don't believe that expansion or new adoption will be enough to fully offset some of the pricing benefit we saw previously.

Damon Kogan, Analyst (Barclays, on behalf of Raimo Lenschow)

Got it. And I guess, can you just provide an update on the top-of-funnel demand that you're seeing now compared to the end of 2025? I know the initial 2026 guide did imply some degradation to top-of-funnel. So I guess just what is the updated full year guide now implying maybe compared to Q1?

Eran Zinman, Co-CEO

Yes, this is Eran. So overall, the top-of-funnel environment remains soft, but it's pretty much in line with the expectations we gave at the beginning of the year. I would say that on top of that, ACV of new lands is increasing across both touch and no-touch motion. So we've seen high-quality leads coming into the platform. And we continue to manage performance marketing cautiously. So pretty much in line with what we expected.

Operator, Operator

Our next question comes from the line of Josh Baer with Morgan Stanley.

Josh Baer, Analyst (Morgan Stanley)

Congrats on a good quarter. I wanted to talk a little bit more about the new seats-plus-credits pricing model. Maybe to start, can you just provide a little more context on how exactly that works? And then also wondering what are the impacts in 2026 from the new model?

Eran Zinman, Co-CEO

Yes, Josh, maybe I can start and then hand it over to Casey. So look, we're very excited for this change. It's the biggest change in the company's history: we're changing the core offering of our products with the new native agents within the platform. Customers will be able to do the actual work in addition to managing work. Part of that change is that new customers will have two vectors of expansion. One is with seats, meaning the more people they add, the more they pay for seats in the same way it used to be. But there's an additional factor on top of that for AI credits. So the more they consume credits the more they pay, the more they're going to use our agents and other functionality. For existing customers, it's going to be gradual. I'll let Casey cover the change we're going to do with existing ones.

Casey George, CRO

Hi Josh. We spent a lot of time getting feedback from our customers, and what we've rolled out is very consistent with how they want to consume value in our platform. As you heard, for new customers it comes with seats plus credits. For our existing customers, it's going to be an opt-in motion. So we'll work with them over the next couple of years as they look to move into this model. We are going to incentivize those customers to move to the new model, especially with our touch customers where we spend a lot of time with them building use cases and finding new ways for them to consume our platform leveraging AI.

Josh Baer, Analyst (Morgan Stanley)

Got it. And so for 2026, are there any assumptions on the impacts from the new model, either from the new customers who are on it? Or I guess also, what are the assumptions as far as the adoption from existing customers?

Eliran Glazer, CFO

It's Eliran. Josh, it's still early stage. We will have a much clearer picture in the coming months, and then we can provide an update or more color on what we are going to see. For now, we didn't assume any significant impact on the numbers.

Operator, Operator

Our next question comes from KeyBank Capital Markets.

Analyst (KeyBank Capital Markets), Analyst (KeyBank Capital Markets)

If I can just quickly follow up on that pricing model as well. Are you actually seeing either slowing in employee head count or seat growth at existing customers? Or are you just kind of making this change in anticipation to decouple yourselves from being so dependent on seats? I'm curious whether it's forward-looking or you're actually seeing it today?

Casey George, CRO

Thank you for the question. We have not seen any degradation in demand relative to seats. We have seen customers looking to use our platform leveraging AI. That's why we've launched this new platform. Overall, demand continues to be strong for new seats, and we actually see acceleration in some of the emerging markets where we've invested. Upmarket is strong. Seat demand continues to be very solid, and customers are taking on new workloads leveraging AI.

Analyst (KeyBank Capital Markets), Analyst (KeyBank Capital Markets)

Great. I'll stick with you. The larger lands from the direct sales motion with larger deals trying to land more upmarket — curious how that's trended? I know you referenced the $50,000 and $500,000 cohorts, but curious whether that's driven by new lands or are people graduating up into those segments of the customer base.

Casey George, CRO

Yes. It's both. We saw double-digit growth for both mid-market and enterprise segments relative to seats. Our ACV grew 22% year-over-year. Gross retention is at historical highs. And obviously, with upmarket, we get exposed to the buying cycles of those larger customers. So we see less linearity in the quarter, but we're delivering in the last month of every quarter; that seems to be consistent. Pipeline is very strong; in fact, our March was one of the strongest months we've ever had.

Operator, Operator

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

Mark Murphy, Analyst (JPMorgan)

I'll add my congrats on a very nice performance. With the understanding you had a solid quarter and gross revenue retention improved, could you share what you are observing within the customer base in the last several months as Claude and Claude for Work have proliferated pretty rapidly? In other words, I'm curious what your customer conversations are like regarding those products. Do some of your customers use them in conjunction with monday, or is it something you just don't see popping up too much?

Roy Mann, Co-CEO

Yes, it's Roy. We see a lot of customers having purchased Claude and similar products. Our vision is having agents and people work together on the same platform, and that also includes external agents. We opened up the platform to have any agent, even external to monday, sign up and get an account or a seat. That touches on what Eran said about the hybrid model: having agents that are external, which will have seats, and our internal agents, which work really well within the monday platform and also integrate externally with other platforms. So this is the future we see, and it's great to see adoption of AI.

Eran Zinman, Co-CEO

Maybe I'll add on top of that. There's a big difference between people using general-purpose models on their own and using them around work with other people in collaboration. We see a lot of customers seeking a solution that integrates AI into their workflows with collaboration. Agents are an amazing technology and can be used in different ways, but where we shine is how customers adopt it integrated into their work, working with other people and native agents built within a work platform. So many customers are looking for a solution like that; we can leverage AI and put it into their existing workflows.

Mark Murphy, Analyst (JPMorgan)

Okay. As a quick follow-up: the stat that shows 3% (earlier was called 10% in some Q&A) of new ARR in Q1 was driven by AI is impressive. Could you drill down into the stats so we understand how you are driving that? What are you counting in there? Is it monday Vibe? Is it the agent or AI workflow? Is it the AI credit pack? If someone upgrades to Pro or Enterprise and you deem that to be AI-influenced, would you count something like that in there, etc.?

Eran Zinman, Co-CEO

This is Eran. When we say AI contribution, we mean direct contribution, not contribution made possible by AI. Currently, it doesn't include the agents product because agents were released very recently. Currently, what drives the AI revenue is our existing offering, including five AI blocks, copilots, and similar features. Obviously, with agents, we have expectations for their contribution going forward, but it's still early days.

Operator, Operator

Our next question comes from the line of Howard Ma with Guggenheim Securities.

Howard Ma, Analyst (Guggenheim Securities)

Congratulations on a strong quarter as well. I want to ask about pricing and packaging. If we look six months from now, heading into 2027, how much of your customer base do you think will be on this new seats-plus-usage pricing model? Do you expect different adoption trends between mid-market versus large enterprise? And one more part: where does One AI fit into pricing — will it be a separate add-on?

Eran Zinman, Co-CEO

This is Eran. As I said, we're opening up the ability to purchase agents for new customers. We feel adoption will be gradual, so it's hard to estimate right now. New customers will buy both seats and AI credits. Regarding the One AI acquisition, it's a very strong team with deep knowledge about voice agents. We plan to integrate that deeply into our AI Work Platform and into our CRM. On the commercial side, we're still working through precise packaging and pricing, but it will be part of our AI credit consumption model. Voice is a great addition technically, and adoption is complex across customers; this team brings expertise to help drive adoption within our existing customer base.

Howard Ma, Analyst (Guggenheim Securities)

Got it. And a follow-up for Eliran: you expect head count to be flattish this year. Last quarter you called out headwinds from the Israeli shekel appreciation, foregone interest from share buybacks, and cash taxes. The head count being flat should give you cushion relative to those headwinds unless there are other headwinds we should consider?

Eliran Glazer, CFO

With regards to head count being flat, this will be staged throughout the year. There is still impact from hiring we did in prior years and the fact that the shekel is strong versus the dollar. So there will be some benefit, but we expect to see more of that benefit into next year rather than this year.

Operator, Operator

Our next question comes from the line of Steven Enders with Citi.

Steven Enders, Analyst (Citi)

Maybe just following up on some of the guide philosophy. Trying to understand the upside you saw this quarter: what were the key factors that drove the revenue upside? And moving forward, how should we think about what's assumed and what's different in the guide velocity versus what we saw in Q1?

Eliran Glazer, CFO

Steve, this is Eliran. Nothing has changed since what we provided in Q1, but the outperformance was broad-based; it wasn't driven by any single segment or core region. Enterprise momentum remains strong, as Casey spoke about. We had record net adds in the mid-market and enterprise cohorts, and we continue to grow upmarket. Also, approximately 3% of net new ARR is coming from our AI offerings, which was an encouraging driver for the quarter. Those are some of the drivers of the results this quarter.

Steven Enders, Analyst (Citi)

Okay. That makes sense. On the agents discussion, I'm curious how you're viewing monetization for both first-party agents and third-party agents. Where do you feel you have the right-to-win for homegrown agents versus where it makes sense for third-party agents to be used?

Roy Mann, Co-CEO

It's Roy. We see agents everywhere: personal assistants, task-specific agents, etc. We want to allow all of those in monday to help people manage whatever they want to manage. monday's own agents are built to be very good at execution, analyzing and executing work together with people. The collaboration aspect, built on top of monday, gives agents access to all the data seamlessly and they work out of the box. People can customize them to do any kind of work and also connect them to other platforms. As part of our future vision of doing the work and not only managing work, those agents will be the best collaborative agents between people and AI.

Operator, Operator

Our next question comes from the line of Jefferies.

John (on for Brent Thill), Analyst (Jefferies, on behalf of Brent Thill)

This is John on for Brent Thill. Two questions. On the credit pricing, the table has many parameters depending on type of usage. Even at $0.01 per credit, that could balloon for customers. How will customers measure and feel comfortable with the new pricing table? And second, can you talk a little about the in-quarter NDR since the $100k-plus cohort has come down a little bit? You did a bit of pricing lapping as well.

Casey George, CRO

This is Casey. Regarding the pricing model for AI credits, customers want transparency, control, and governance of those credits. We're giving them that as part of the platform: they can see exactly who's using credits, what they are used for, and they can scope out the work so they can plan accordingly for their AI credit usage. That's a big driver for our platform, and we've received feedback that customers want this level of visibility and control.

Eliran Glazer, CFO

John, on the NDR question: one of the dynamics is that recent enterprise deals land bigger and larger customers typically commit to multiyear agreements with more predictable expansion. If you think about the cohorts, this is one reason why we are saying the 100k-plus NDR is slightly below the 50k-plus cohort. It's not related to churn — our gross retention is at an all-time high. We expect 1% or 2% of temporary pressure for the upmarket metrics for the remainder of fiscal year 2026 as we lap the pricing benefit we spoke about.

Operator, Operator

Our next question comes from the line of Canaccord.

David (DJ) Hynes, Analyst (Canaccord)

Eliran, does the addition of usage-based elements into the model more effectively match your revenue with your costs tied to AI so that we could see better gross margin preservation over time?

Eliran Glazer, CFO

As we said at Investor Day, we expect gross margin to be in the mid-80s given AI computing costs, compared to prior near-90% levels. We're not yet seeing a significant impact on gross margin, but we do expect additional compute-related costs tied to AI in the foreseeable future.

David (DJ) Hynes, Analyst (Canaccord)

Okay. And Eran, maybe following up on the product side: does the addition of voice capabilities with One AI push you closer to turning service into more of a customer-facing application over time?

Eran Zinman, Co-CEO

Yes. We'll focus on integrating voice into CRM and our work platform going forward. It's also an opportunity for the services team, but overall voice capabilities are important across products. The hardest part is not the technology itself but customizing it to customers' needs. With agents and voice, monday can help customers adopt them in a very intuitive way rather than through hard-to-use prompts or interfaces.

Operator, Operator

Our next question comes from Wolfe Research.

Aleksandr Zukin, Analyst (Wolfe Research)

Maybe first on new product ARR. It was north of 11% now and continues to grow nicely. Can you dig into the interplay between CRM and Service and share some details on that progress in the quarter?

Eran Zinman, Co-CEO

High-level: new products account for over 11% of our ARR. We see significant opportunity to accelerate cross-sell, especially in mid-market. More customers are adopting more than two products. CRM surpassed $100 million ARR and continues to grow nicely, mostly in SMB. Service continues to see strong ARR, with ACV highest across products. Most growth in Service is driven by seat expansion and cross-sell into customer support workflows. Adoption is healthy and we remain pleased with the progress.

Aleksandr Zukin, Analyst (Wolfe Research)

Okay. And then on the comment about why the 50k and 100k ARR sequential adds were a bit lower: you mentioned seasonality, and that you shifted performance marketing toward upmarket. Is that driving outperformance? Will we see effects later in the year as seasonality improves?

Eliran Glazer, CFO

Alex, there is some seasonality: Q4 and Q2 typically have strong performance, and we saw record net adds in Q4 last year, which may have created some pull-forward. When we look at mid-market and upmarket metrics together — the $50k and $500k cohorts — they were healthy with net adds at historical highs. We view them together and remain positive on upmarket momentum.

Operator, Operator

Our next question comes from UBS.

Taylor McGinnis, Analyst (UBS)

You mentioned the strength in the quarter was broad-based, but it seemed like a bit of a turnaround from trends last quarter and upside was higher. Anything that surprised you in the quarter in terms of areas stronger than expected? Also, can you unpack what you're seeing at the start of Q2? And as a housekeeping item, can you comment on FX impact to revenue in the quarter and what's expected for the full year guide?

Eliran Glazer, CFO

Taylor, the positive surprise was the direct AI contribution to net new ARR at around 3% this quarter, which we are pleased with. Otherwise, upmarket momentum and enterprise performance continue as previously described. Regarding FX, we saw small tailwinds in Q1 but it did not materially impact the reported growth rate. For the full year guide, we assumed a negative FX impact of 100 to 200 basis points in the operating margin assumptions.

Operator, Operator

Our next question comes from BTIG.

Allan Verkhovski, Analyst (BTIG)

Congrats on the strong quarter. Can you talk about the level of engagement you've seen with your marketplace/partner protocol? What types of customers have used it more? Any trends in expansion activity for customers that have used it? And a quick follow-up: Q2 revenue guide implies lower sequential growth than Q1 despite being a seasonally stronger quarter. Can you unpack what you're factoring in there? How much is prudent conservatism versus potential impacts from new dynamics?

Eran Zinman, Co-CEO

We see some usage through the marketplace/protocol. We invested a lot of work making monday accessible to agents and easy for agents to sign up, but it's still early and not large in scale yet.

Eliran Glazer, CFO

It's small numbers so far, but the customers who use it show stronger retention profiles. Regarding Q2 guide: we provided guidance based on everything we know today. We're investing in AI and GTM capabilities and expect compute costs to increase throughout the year. There's inherent uncertainty on how quickly revenue from AI consumption will ramp, so our guidance reflects that uncertainty and a prudent approach toward managing expectations for the remainder of the year.

Operator, Operator

Our next question comes from Bank of America.

Matthew (Matt) Bullock, Analyst (Bank of America)

I wanted to follow up on the ~3% of net new ARR coming from AI products. It seems like it was a source of upside in Q1. Help us think through assumptions for consumption-based revenue or AI product revenue for the 2026 guide and how to think about that as a potential upside lever throughout the year. Also, what incentives are you providing enterprise customers to migrate to the new seats-plus-usage model?

Eran Zinman, Co-CEO

Matt, the revenue we captured this quarter was not from agents and usage-based consumption; it was mostly driven by existing AI blocks and features. We still don't have a reliable model for agents and token-based usage revenue, so it's hard to model that today. We'll aim to provide more color next quarter.

Casey George, CRO

On incentives: customers today are buying AI capabilities a la carte and we'll continue to offer that. We're also exploring packages where new customers get incentives for buying AI packages along with their products. For existing customers, it's opt-in; we won't force migrations. But we'll design attractive incentives for customers to adopt the new model.

Roy Mann, Co-CEO

To add: it's not a complex migration — it's effectively a switch customers can opt into. There's nothing they need to migrate other than agreeing to the new commercial terms.

Operator, Operator

Ladies and gentlemen, that concludes the question-and-answer session. Thank you all for joining. You may now disconnect.