Good day, and welcome to the Paylocity Second Quarter 2025 Fiscal Year Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star one one again. Please be advised that today's conference is now being recorded.

Good afternoon, and welcome to Paylocity's earnings results call for the second quarter of fiscal 2025, which ended on December 31, 2024. I'm Ryan Glenn, Chief Financial Officer. Joining me on the call today are Steve Beauchamp, Executive Chairman, and Toby Williams, President and CEO of Paylocity. Today, we will be discussing the results announced in our press release issued after the market closed. A webcast replay of this call will be available for the next 45 days on our website under the Investor Relations tab. Before beginning, we must caution you that today's remarks, including statements made during the question and answer session, contain forward-looking statements. These statements are subject to numerous important factors, risks, and uncertainties which could cause actual results to differ from the results implied by these or other forward statements. Also, these statements are based solely on the present information and are subject to risks and uncertainties that can cause actual results to differ materially from those projected in the forward-looking statements. For additional information, please refer to our filings with the Securities and Exchange Commission, for the risk factors contained therein and other disclosures. We do not undertake any duty to update any forward-looking statements. Also, during the course of today's call, we will refer to certain non-GAAP financial measures. We believe that non-GAAP measures are more representative of how we internally measure business. And there's a reconciliation schedule detailing these results currently available on our press release which is located on our website at paylocity.com under the Investor Relations tab and filed with the Securities and Exchange Commission. In regard to the upcoming conference schedule, I will be attending the Wolfe Software Conference. Toby and I will be attending the Raymond James Institutional Investors Conference, and Toby will be attending the Stifel Technology one-on-one conference. Let me know if you'd like to schedule time with us at any of these events. With that, let me pass the call over to Steve.

Thank you, Ryan, and thanks to all of you for joining us on our second quarter fiscal 2025 earnings call. Our strong results continued in Q2 with recurring and other revenue growth of 17%, as our differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace. Total revenue grew 16% over Q2 of last year. Our sustained multiyear investment in R&D has resulted in strong product differentiation and significant expansion of our product suite, which has helped drive durable revenue growth and expanded average revenue per client. The recent launch of benefit decision support and our expansion into the office of the CFO with our integrated headcount planning product has increased our max PEPY from $550 to $600, achieving the target we set in August 2023. And this does not yet include any AI-based products. We also remain confident in our ability to drive further product expansion and further expansion of our average revenue per client across new and existing clients with new HCM and office of the CFO products over time. Additionally, our new AI assistant chatbot is now generally available to all Paylocity client admins, and we are pleased with early levels of adoption. Since launching in October, we have seen a 30% increase in utilization, and key features such as natural language search capabilities, which are available in our reporting product, have driven an over 20% reduction in time required for our users to find reports. We are encouraged by the benefits our AI-related investments are driving for our clients and excited to continue adding additional AI-enabled functionality and key use cases over time. Our ongoing commitment to product innovation continues to be recognized by third parties, as Paylocity was recently awarded the TrustRadius Buyer's Choice Award and named overall leader in ten HCM product categories in G2's Winter 2025 Grid Reports. I would now like to pass the call to Toby to provide further color on the quarter.

Thanks, Steve. As Steve highlighted, the momentum seen in Q1 continued into the second quarter, resulting in solid selling season performance and increased revenue and profitability guidance for fiscal 2025. Our results are driven by strong sales and operational execution, continued product differentiation, and a more stable macroeconomic environment. We also continue to be pleased by our ability to add talented sales reps and solution consultants, and our ongoing investments in training and development across our sales team helped contribute to another quarter of strong go-to-market execution, including continued traction upmarket. Additionally, we are pleased to see another quarter of strong performance across the broker referral network, which once again delivered more than 25% of our new business in Q2. The sustained success of our broker channel is driven by our modern platform, marketplace ecosystem, third-party integration, and API capabilities, and because we do not compete against our broker partners by selling insurance products. We remain committed to investing in and supporting the broker channel going forward, with the goal of continuing to deliver real value and true partnership and support to our referring brokers and clients. Overall, we are pleased with Q2 results and believe we are well-positioned heading into the back half of the fiscal year, which is reflected in our increased guidance for fiscal 2025. While still in the very early days, we're pleased with the reception of the Airbase acquisition from both existing and prospective clients, and we will continue driving the integration process across our teams and our platform. From our early conversations, the value proposition of having a single platform through which all payroll and non-payroll-related spend can be managed with a robust set of integrations with key third-party systems is resonating with decision-makers across our target market. We are also pleased with the ability to collaborate with mutual clients to drive a combined roadmap that delivers incremental value to businesses across our target market. Finally, this time of year is a very busy time for all of our teams as they work closely with clients on year-end processing of payrolls, W-2s, 1095, and annual tax form filings to federal, state, and local agencies and on the implementation of new clients. I want to thank all of our employees for their hard work and dedication to our clients during this very busy time of year. The strong culture at Paylocity also continues to be recognized externally as we recently were named to Forbes list of America's Most Trusted Companies and Fortune's list in 2024 Best Workplaces in Technology in addition to being recognized as one of America's Greatest Places for Workplaces for Diversity by Newsweek for the second consecutive year. I would now like to pass the call to Ryan to review the financial results in detail and provide our increased fiscal 2025 guidance.

Thanks, Toby. Q2 recurring and other revenue was $347.7 million, an increase of 17%, with total revenue of $377 million, up 16% from the same period last year. Our strong Q2 results were primarily driven by another solid quarter for our sales team, allowing us to come in $8 million above the top end of our revenue guidance, resulting in a raise for our fiscal year guidance by more than our beat for the second consecutive quarter. Our adjusted gross profit was 73.8% for Q2, versus 72.7% in Q2 of the last fiscal year, representing a 110 basis points of leverage as we continue to focus on scaling our operational costs while maintaining industry-leading service levels. We continue to invest in research and development and understand our overall investment in R&D. It is important to combine both what we expense and what we capitalize. On a dollar basis, our year-over-year investment in total R&D increased by 16.2% compared to the second quarter of fiscal 2024, and we remain focused on making investments in R&D throughout fiscal 2025 as we continue to build out the Paylocity platform to serve the needs of the modern workforce. In regards to our go-to-market activities, on a non-GAAP basis, sales and marketing expenses were 21.7% of revenue in the second quarter. And on a non-GAAP basis, G&A was 9.8% of revenue in the second quarter, and we remain focused on consistently leveraging our G&A expenses on an annual basis. Our adjusted EBITDA for the second quarter was $126.2 million, or a 33.5% margin, exceeding the midpoint of our guidance by $8.2 million. Excluding the impact of interest income on funds held for clients, adjusted EBITDA was $96.9 million, also exceeding our guidance for Q2. Briefly covering our GAAP results for Q2, gross profit was $252.4 million, operating income was $46.6 million, and net income was $37.5 million. In regard to the balance sheet, we ended the quarter with cash and cash equivalents of $482.4 million and $325 million in debt outstanding related to the funding of the Airbase acquisition. In regard to client-held funds and interest income, our average daily balance of client funds was approximately $2.8 billion in Q2. We're estimating the average daily balance will be approximately $3.2 billion in Q3, with an average annual yield of approximately 360 basis points, representing approximately $29 million of interest income in Q3. On a full-year basis, we are estimating the average daily balance will be $2.9 billion with an average annual yield of approximately 390 basis points, representing approximately $113 million of interest income. In regard to interest rates, our guidance reflects all Fed cuts to date with an additional 25 basis point rate cut assumed in May. Additionally, given the confidence we have in our business and our strong cash flows, we continue to utilize our share repurchase program with $8.6 million or approximately 40,000 shares of common stock repurchased in Q2 at an average price of $197.90 per share. As a reminder, we have approximately $341 million remaining under our share repurchase program and anticipate continuing to execute against the program over the remainder of the year. Finally, I'd like to provide our financial guidance for Q3 and full fiscal 2025. Note that as a result of strong selling season and continued momentum across our sales team, our fiscal 2025 recurring and other revenue guidance increased by $15.5 million and our total revenue guidance by $20.5 million at the midpoint, which includes the full impact of our guidance beat in Q2 and a further increase in back half fiscal 2025 revenue guidance. Additionally, we continue to realize success driving increased profitability across our business, resulting in increased adjusted EBITDA guidance, which includes the full impact of our guidance beat in Q2 and increased profitability expectations for fiscal 2025. With that said, for the third quarter of fiscal 2025, recurring and other revenue is expected to be in the range of $410 million to $415 million, or approximately 12% to 13% growth over third quarter fiscal 2024 recurring revenue. And total revenue is expected to be in the range of $439 million to $444 million, or approximately 10% growth over third quarter fiscal 2024 total revenue. Adjusted EBITDA is expected to be in the range of $171 million to $175 million. Adjusted EBITDA excluding interest income on funds held for clients is expected to be in the range of $142 million to $146 million. And for fiscal year 2025, we are increasing all aspects of our guidance as follows. Recurring and other revenue guidance is now expected to be in the range of $1.445 billion to $1.455 billion, or approximately 13% growth over fiscal 2024 recurring and other revenue. Total revenue guidance is expected to be in the range of $1.558 billion to $1.568 billion, or approximately 11% growth over fiscal 2024. Adjusted EBITDA is expected to be in the range of $542 million to $550 million. And adjusted EBITDA excluding interest income on funds held for clients is expected to be in the range of $429 million to $437 million. In conclusion, we are pleased with our Q2 results and the momentum we have across our sales and operations team as we exit our busiest time of the year. Operator, we are now ready for questions.

To withdraw your question, please press star one one again. Due to time restraints, we ask that you please limit yourself to one question and one follow-up question. Please stand by while we compile the Q&A roster. And our first question will come from the line of Brad Reback with Stifel. Your line is open.

Great. Thanks very much. Not sure who it's for, but with the M&A coming in the market and Acorn getting taken out, they clearly had a big broker channel. They're now going to be competing with those brokers. Do you see that as an opportunity to accelerate your broker go-to-market?

Hey, Brad. It's Toby. I mean, think if you look at what's made us successful over time, with the broker channel, it's been the investments that we've made to build those relationships to provide, you know, meaningful technology to them, visibility into their business. It's being able to provide integrations that matter and ultimately, I mean, we don't compete with the broker channel with the sale of insurance products. And so I think those are the things that have made us successful and helped us build meaningful relationships with that channel. And I think that's, you know, that's what we want to be able to do as we look forward. And, you know, I think if there's any disruption that comes from a deal like that, that's where we want to be to provide those types of relationships with brokers that are successful.

And just a quick follow-up on that, Toby. As you build broker relationships, does it typically take months, quarters, or longer to get them productive?

Well, I think a lot of the relationships that we have have been built over time with our sales force in the field. And I think when those relationships exist, they tend to be productive. You know, it doesn't take years to get them to be productive. It's all about our ability to build those relationships, make the connection, and then being able to communicate the value that I just ran through. And when we can do that, we can usually make those productive in the near term. I think I was mentioning, Brad, just to add to that is, yeah, no problem, is oftentimes the broker relationships are not necessarily exclusive, meaning, you know, they might refer to Paylocity, they might refer multiple providers. We obviously want to be that premier provider in each of these relationships. And so if there happens to be less competition in the market and fewer options available, then I think to Toby's point, we feel like we are really well-positioned since we've been doing that really from the very start of Paylocity. With a great reputation in the market to take advantage of that.

Hi, everyone. Nice quarter. Thanks for taking my questions. Steve and Toby, I guess as I track your prescriptive remarks maybe this quarter and last quarter, I get a sense that you have a maybe a renewed sense of optimism in the business. Sounds like you're able to call payrolls properly, and it seems like deal flow is kind of stabilizing. Is that the right way to view, you know, some of your comments that you made here today? Or is that maybe something I'm making up in my head, I guess?

Well, I mean, I think we would hope that you would hear a lot of consistency in our approach. So I mean, I think we have always been optimistic about our ability to continue to grow and serve clients well and, you know, as we're just talking about delivering value to the broker channel, and so yeah. I think that's been a pretty consistent approach from a strategy perspective and approach to the growth algorithm, and I think you continue to hear that today. And I think Steve and I both have, I think, tried to communicate that over time, and I think that still holds true.

Understood. And now that we're through your obviously busy selling season in the fall and we're into calendar Q1. How do you think about sales hiring this year during calendar 2025 as you start to think about 2026? I know not all your plans are certainly made for next fiscal year, but when you think about sales capacity, hiring, does it change much from how you viewed last year? I know this is typically when you start to hire more at least into the spring for the busy selling season. Thanks.

I think we, so if you go back to, really, the hiring season and coming into this fiscal year, we had come in growing sales headcount by around 8%, and we talked about at the time was that, you know, we would that would be our starting point. And the focus was really on, you know, driving productivity across our go-to-market teams. And that if we, you know, saw a market change in the macro, I mean, we still would have room to be able to continue to invest throughout the course of the year if leaning in made sense. And I think as we sit here, you know, coming through, you know, the first half, I think we performed well in selling season. We feel good about the momentum that our go-to-market teams have had, and I feel like it's been a more stable environment than we would have seen last year. And so, you know, I think we feel good about the investments that we made coming into the year and still, you know, remain optimistic about our ability to be a destination for talent, particularly in go-to-market, in the industry, and, you know, I think when those opportunities present themselves, we're ready.

Hey, guys. Thanks for taking my questions and good to see the strong quarter. Just one note for my good friend, Scott. Dumbledore said it could be happening inside your head. But doesn't mean it shouldn't be real on earth either. So just remember that, Scott. So Toby and Steve, for you guys, I want to ask about Airbase. And I know you're talking about the early impression that you're getting from customers that it's been well received. I guess, can you maybe just help us understand what for the customers that you've sold it to since the acquisition, have you seen them buy it upfront along with the rest of the suite, or are you seeing them engage in conversation? And put it as something down the road. Maybe just help us understand what that level of receptivity has been and how that's manifested in the numbers.

Sure. So, obviously, you know, all under, you know, Airbase is still a relatively small revenue stream when you look at our overall business. But having said that, we are pleased with the early indications in both scenarios. First, interactions with our sales team that are bringing clients on board upfront. We're seeing some activity there where customers are interested in having that conversation about how Airbase products can help them as they look at modernizing their HCM suite. So some good examples there. And then at the same time, as we go back to our existing customers and we talk to them about this acquisition and how we might be able to help them, we're also seeing some interest. That's all being done as we're working on the product integration, which we think will only increase the value proposition over time. So I think we're happy early on with both the team that we brought over with Airbase and the early reception from both our customers and prospects in the market.

Great. And then, Ryan, maybe a follow-up for you. Can you give us an idea of what the contribution from Airbase was in the quarter? And just as I think about the upward revision to the guidance, that's because that's a really positive outcome. And how much of an influence did Airbase have on that, or was that all for the core business?

Yeah. I would think of the contribution from Airbase being consistent with how we sized it last quarter, which is roughly 1% of revenue or so this fiscal year. So to Steve's point, I think that business is performing as expected and relative to the overall business is fairly small. So when you think about both the results in Q2 and the larger guidance raised in the back half of the year, I would view that as really driven by core Paylocity overperformance.

Hey. Good afternoon. Thanks for taking my questions, and let me add my congratulations. Great quarter. Wondering if you can talk a little bit about what you're seeing just in terms of the differences between the mid-market relative to the upper end of your target market. In the past, you had talked about longer decision cycles in the upper end. Are you seeing any change in tone? And what are you seeing in terms of receptivity or areas of strength and any areas that are more or less competitive?

Yeah. Mark, it's Toby. I think if you go back to this time last year, you know, we were talking about the fact that we had seen longer sales cycles, particularly in the upper end of the market. And part of that was due to more, I think, cycles through with decision-makers and seeing more demos, etcetera, things like that. And, yeah, I think as we came through the third quarter and then through the fourth quarter of last year, we also started to see a little bit more stability in the market. I think as we came into this year, you know, that's really how we set the year up. I think that's what we saw through Q1, and I would say, you know, stable through Q2. I don't think we saw any significant change in the dynamics in the market, but we did feel like it was more stable. And I think, you know, coming through selling season, you know, really proud of how our teams executed.

Yeah. So I think we're definitely happy with the start for headcount planning. As you mentioned, it is the first product in that office of the CFO category and being able to deliver that to oftentimes both new customers, many of those who are starting in January and probably haven't fully taken advantage of headcount planning yet, but also back to the base and getting some of our existing customers. That's probably where we've gotten even more feedback from existing customers as they're going through an annual cycle, going through their planning cycle, you know, they were able to use that tool to do, you know, better headcount planning than they would have oftentimes been doing in spreadsheets and manually. So off to a good start.

Can you test call over Brian? I have a quick question. So you're saying that your PEPY has reached your target of $600 and you've reached this goal. What is a high-level thought on how you're now recalibrating, rethink about a new target going forward?

Sure. I'll take that. So, yeah, we're really proud of being able to reach that goal back in 2014 at IPO. We tripled the amount of product that we've been able to sell. And so we also see a big opportunity for us to be able to do that. The PEPM model is certainly one that works very well when you think of HCM products as we move into the office of the CFO, some of those might not be that same pricing model. However, I don't think that changes the mix of new units and ARPU over time. So you'll see us continue to focus on that average revenue per customer growth, which might be priced a little bit differently depending on the product category. But it's the same model that we've really kind of operated. And so we'll have to give some thought in terms of how we discuss that on a go-forward basis. But as I mentioned earlier, we're still very early innings into the Airbase acquisition. And so I would expect more color over time, but no change in focus. Continue to drive more new products back to the existing customers and new customers continue to drive both units as well as ARPU as the formula for growth.

Yeah. I would say at our current scale, you know, roughly one and a half billion dollars in revenue, we've consistently continued to invest a similar percentage back into R&D that has been part of our belief that the product differentiation is what's really driving the performance over time. And so we will balance the investment both in terms of enhancements and features to our customers with existing products, new HCM products, innovation capabilities with things like AI, and then at the same time make investments into new categories. I think we've had a pretty good history of being able to do that and been first to market in many of those categories. And so we feel like we're well-positioned to be able to do that. Oftentimes and most of the time, that's organic. In some cases, we've made some strategic acquisitions where we think it's a great fit. We spend the time to integrate that product so the customer experience mirrors something that we would build. And we've got to continue to balance our portfolio of investments from an R&D perspective. But certainly, increased size and scale allows us to do that.

Great. Good evening, everyone. Thank you for taking my question. Ryan, great outcome on the EBITDA line. If I look at the free cash flow of the business, doesn't look as expansive on a year-over-year basis. My guess is that Airbase is kind of muddying the waters a little bit there. So can you help us think about the conversion of EBITDA to free cash flow for the rest of the year? Any puts and takes we should be considering, we're working through our model.

Sure. Yeah. Obviously, we don't guide to free cash flow specifically and certainly quarter to quarter that number moves around with timing of spend. So nothing that I would call out that would be concerning or one-time to your point. There's obviously a headwind this fiscal year relative to the Airbase acquisition, which we've characterized as roughly a hundred basis point headwind for adjusted EBITDA. I think the headwind to free cash flow is pretty similar. So when you think where we are today, on a TTM basis, free cash flow roughly 21% margin, we do have the headwind over the balance of this fiscal year. I think we will end up somewhere north of 20% this year. That's not formal guidance, but I think when you look at where this goes going forward into 2026 and beyond, expect to be able to continue to drive leverage going forward. But wouldn't have any specific current concerns relative to Q2, just some timing of when some of the cash flows hit within the year.

Thanks, and congratulations on an excellent quarter. Going back to Airbase again, so is your plan now to run this as an independent group or even keep that product in the same form, or are you planning to, you know, rebuild on the Paylocity platform before you go to your Paylocity customer base to cross-sell this? Basically, my question, when should we start thinking about cross-sell opportunity of, you know, Airbase into Paylocity?

Yeah. So I think stepping back from a long-term perspective, our goal will be to integrate those platforms over time so that we're delivering a very unified and holistic experience as well as all the spend management capabilities. That will certainly take some time. Having said that, our customers can still benefit from some of the integration that already exists and that we're going to be adding over time. And so we will continue to sell new customers. We will sell back to our customer base in such a way that we'll grow over time. And so as we go into next fiscal, I would say, you know, throughout next fiscal and throughout the back half of next fiscal, I would imagine we start to gain some momentum with product integration. It'll be a multiyear effort. But the bigger opportunity from our perspective is really this that you will continue to grow standalone revenue within Airbase. But the bigger opportunity is the cross-sell. And to your point, that in you look at our history, that will take us twelve to eighteen months, this a little bit larger acquisition. Wouldn't surprise me if that's more in the twelve to twenty-four months. But what I'm really happy about is even without all the benefit that we're going to be able to deliver from a truly integrated platform, we're still seeing good receptivity from both prospects as well as existing customers. So off to a really good start.

Yeah. I would say at our current scale, you know, roughly one and a half billion dollars in revenue, we've consistently continued to invest a similar percentage back into R&D that has been part of our belief that the product differentiation is what's really driving the performance over time. And so we will balance the investment both in terms of enhancements and features to our customers with existing products, new HCM products, innovation capabilities with things like AI, and then at the same time make investments into new categories. I think we've had a pretty good history of being able to do that and been first to market in many of those categories. And so we feel like we're well-positioned to be able to do that.

Yeah. Hey, good afternoon. Congrats for me on the quarter. I'm running out of questions to ask. I mean, they're relegated to SuperVO picks or maybe an upmarket traction question. So I'll go for the latter so it doesn't get into a sensitive topic on picks. As it relates to the upmarket traction, I think that was in the prepared remarks. Maybe you could just share a little bit more about are you seeing any evolution on attach rate of other products beyond core and payroll? And what are you getting in terms of some early signals on their propensity to buy these office of CFO products maybe versus more of smaller mid-market or smaller customers. Thank you.

Yeah. So I think the first part of the question, we are definitely seeing continued increases in attach rates. I would describe them as gradual increases in attach rates as we bring on some of the customers in the upper end of our market. And I would probably credit much of that to better execution on our part. We called that out a year ago, felt like there were a number of things that we could do, you know, training, staffing, different roles that support the sales organization. I think we've executed well on all those things, and we saw the benefit of that through selling season. I think you saw that with the guidance raise.

Hey, thank you and congrats for me as well. Two quick questions. First, have you like, can you talk a little bit about the labor market? Obviously, you remember last year was actually was almost a year before where, you know, we had issues on new hiring, etcetera. Have you seen any change, especially if you look at the small business index post-election? You know, that's kind of going up every week. Improvements there? What are you seeing there in that market?

Yeah. I think broadly speaking, we've seen a really stable macro, and I think that that's, you know, from a macro standpoint across the board within employees in the platform. You know, as you know, we probably had a, you know, a touch of conservatism or prudence into the guidance. We did not assume any increase, and, you know, I'd say there's probably modest upside to that in the first half of the fiscal year. Not particularly material, but net net and overall positive.

Hey. Thanks for taking my questions. Just a couple quick ones. Don't want to get too ahead of my skis here, but you know, on paper, it looks like the Q2 recurring revenues accelerated. But if we strip out Airbase, then we strip out a little bit of that pull forward, would Q2 have really just been more similar to the 14% growth you saw in Q1? Or did you see any, you know, a little bit of acceleration there?

No. I think that's a fair characterization. I think when you control for those two items, I think it would be, you know, spot on or almost, you know, very close to what the Q1 recurring revenue growth would be.

Great. This is Austin Cole on for Pat Walravens. Appreciate you taking the questions. Nice results. Steve, more high-level question here, but would love to get your just general thoughts on the Paychex Paycor deal. Why do you think Paychex wants to buy Paycor? How do you see this market evolving? Going forward.

Yeah. So certainly have no inside information but I think just from a macro perspective, there has been consolidation in this industry over time. It is, you know, businesses that can drive pretty high margin. So as you're able to do that, you can typically take some cost savings out. I think they called some of that out in their press release in terms of targeting some cost savings. I think Paycor has focused a little bit of a larger size customer than Paychex historically. So I think you put all that together and that's, at least, is the rationale that I would think about. And I think from our perspective, we're going to continue to do what we were doing before. You know, it's really about innovating. We've fared very well against both those competitors. They're strong competitors, for sure. But they're someone that we've had success with over time. And so we feel like if there's a change in their strategy, if there's any type of disruption, then that could be incrementally beneficial to us. Otherwise, we're going to continue to do what we do and deliver the most modern experience to our customer.

Great. Appreciate that perspective. Thank you.

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

Thank you very much. I'd just like to say thank you to everyone for your interest in Paylocity. Thanks for joining the call, and a special thank you to all of our employees for making it a great quarter and taking great care of our clients. Everybody, and have a good night.