Impinj Inc Q3 FY2025 Earnings Call

Thank you, Gary. Good afternoon, and thank you all for joining us to discuss Impinj's third quarter 2025 results. On today's call, Chris Diorio, Impinj's Co-Founder and CEO, will provide a brief overview of our market opportunity and performance. Cary Baker, Impinj's CFO, will follow with a detailed review of our third quarter financial results and fourth quarter outlook. We will then open the call for questions. You can find management's prepared remarks plus trended financial data on the company's Investor Relations website. We will make statements in this call about financial performance and future expectations that are based on our outlook as of today. Any such statements are forward-looking under the Private Securities Litigation Reform Act of 1995. Whereas we believe we have a reasonable basis for making these forward-looking statements, our actual results could differ materially because any such statements are subject to risks and uncertainties. We describe these risks and uncertainties in the annual and quarterly reports we file with the SEC. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, except as required by law. On today's call, all financial metrics, except for revenue, or where we explicitly state otherwise, are non-GAAP. All balance sheet and cash flow metrics, except for free cash flow, are GAAP. Please refer to our earnings release for a reconciliation of non-GAAP financial metrics to the most comparable GAAP metrics. Before turning to our results and outlook, note that we will participate in the Baird 2025 Global Industrial Conference on November 11 in Chicago, the UBS Global Technology and AI Conference on December 3 in Scottsdale, and the Barclays 23rd Annual Global Technology Conference on December 10 in San Francisco. We look forward to connecting with many of you at those events. I will now turn the call over to Chris.

Thank you, Andy, and thank you all for joining the call. Our third quarter results were strong with revenue and adjusted EBITDA exceeding the upper end of our guide range. Record endpoint IC volumes and better-than-anticipated reader volumes drove product revenue to a new quarterly record, with Gen2X's success solving challenging industry use cases behind a growing portion of that product revenue. We delivered that revenue outperformance despite weak retailer buying patterns and tariff headwinds, highlighting our strong market position and technical and product leadership. Starting with silicon, third quarter endpoint IC revenue exceeded our expectations. Supply chain and logistics led the way with our second large North American end user now fully deployed in domestic parcel delivery. Retail volumes grew modestly, buoyed by the upcoming holiday season, but with a cautious note as our partners and end users buy into demand rather than ahead of it. We expect third quarter to mark the seasonal peak for both supply chain and logistics and retail endpoint IC volumes, with fourth quarter volumes stepping down modestly. Partner channel inventory remains healthy, declining slightly in third quarter. Turning to reader ICs. Third quarter revenue met expectations with the richest E Family mix to date. Looking to fourth quarter, conservative ordering by our Chinese reader IC partners will push revenue lower. Longer term, we see strong E Family growth, including from multiple overhead reading deployments and pilots that leverage Gen2X, creating pull for our M800 endpoint ICs. In solutions, we saw strong third-quarter revenue led by our Lighthouse accounts. We delivered more readers to our second large North American supply chain and logistics end user in the quarter than we expected, as they continue driving new use cases. Those use cases should generate meaningful fourth-quarter reader revenue as well, as deliveries will step down as rollouts stretch into 2026. We also saw meaningful third-quarter reader revenue from the visionary European retailer, but here again expect a step down in the fourth quarter due to project phasing. To be clear, the size and scope of these rollouts remain intact, but timing will nudge fourth quarter systems revenue down slightly sequentially, bucking the typical seasonal growth trend. Despite the stretched timelines, our end users, both current and new, continue asking for our help with their business challenges. Solving those challenges requires not just radio know-how, but also software from ML at the edge to cloud services. So we are aggressively hiring technical and business talent to develop that software and win the recurring revenue opportunity. Last week, we hired an SVP of SaaS and Cloud Services to lead our development, which is heartwarming for me because he was a student of mine at the University of Washington 25 years ago. He, our CTO, and others across the company are digging into opportunities, including e-commerce, leveraging the strong foundation of our platform, endpoint ICs, and Gen2X uniquely offer for solving those challenges. I'd like to again say a few words about Gen2X. Years ago, when we spearheaded developing the industry's radio protocol, we and others recognized that we couldn't create one single overarching protocol that addresses all market verticals and use cases. So we built into the final protocol the flexibility for customizations. We have now proven the foresight in that choice with Gen2X, which is native in our M800 endpoint ICs, E Family reader ICs, R700 readers, and adopted by many of our industry partners. Our Gen2X customizations have helped us deliver retail loss prevention, supply chain and logistics conveyor sorting, and now partners are using them for overhead retail reading. We are today enhancing Gen2X for food and e-commerce and will, over time, introduce differentiated endpoint ICs that help solve key use cases and win those markets. Turning to food, which is by far our largest opportunity, product freshness and supply chain efficiencies are driving pallet, case, and item level deployments with two opportunities now public. There are others, including pilots at point of sale and for assisted self-checkout. Although we still expect food endpoint IC volumes to be modest this year and in the first part of next, our engineering and go-to-market organizations are forging silicon, software, and business innovations to help unlock the food opportunity. We are well-positioned to do so. And as the leading grocers adopt, we expect other grocers to follow. On the organizational front, I am thrilled to welcome Arthur Valdez to our Board. Arthur has more than 30 years of experience leading global supply chain and logistics operations for major e-commerce, retail, and consumer enterprises. His expertise in transforming and optimizing supply chain and logistics networks for large consumer-facing companies will be invaluable as we continue advancing our vision of connecting everything. Arthur, welcome to Impinj. In closing, our solutions and Gen2X focus continue paying dividends in revenue, adjusted EBITDA, recurring endpoint IC volumes, and market leadership. Our market opportunity continues expanding with more opportunities for secular growth in retail, supply chain and logistics, food, and a long tail of other applications. As we continue driving our bold vision, I remain confident in our market position and energized by the opportunities ahead. As always, before I turn the call over to Cary for our financial review and fourth quarter outlook, I would like to again thank every member of the Impinj team for your tireless efforts. I feel honored by my incredible good fortune to work with you.

Thank you, Chris, and good afternoon, everyone. Third quarter revenue was $96.1 million, down 2% sequentially from $97.9 million in second quarter 2025 and up 1% year-over-year from $95.2 million in third quarter 2024. Third quarter endpoint IC revenue was $78.8 million, down 7% sequentially from $84.6 million in second quarter 2025 and down 3% year-over-year from $81 million in third quarter 2024. Excluding the $16 million second-quarter licensing revenue, endpoint IC revenue grew 15% sequentially. Looking forward, we expect fourth quarter endpoint IC revenue to decline sequentially, but on the favorable side of normal seasonality. Third quarter systems revenue was $17.3 million, up 30% sequentially from $13.3 million in second quarter 2025 and up 21% year-over-year from $14.2 million in third quarter 2024. Systems revenue exceeded our expectations, driven by reader strength in supply chain and logistics. Looking forward, we expect fourth quarter systems revenue to decline slightly sequentially, driven by project timing, as Chris already noted. Third quarter gross margin was 53% compared with 60.4% in second quarter 2025 and 52.4% in third quarter 2024. The sequential decline was driven primarily by licensing revenue. The year-over-year increase was driven primarily by lower indirect costs. Excluding licensing revenue, third-quarter product gross margin increased 40 basis points sequentially, driven primarily by endpoint IC product margin, including M800. Looking forward, we expect fourth quarter gross margin to increase sequentially. Total third-quarter operating expense was $31.8 million compared with $31.5 million in second quarter 2025 and $32.5 million in third quarter 2024. Operating expense was below expectations as our team exercised good fiscal discipline. Research and development expense was $17.8 million, sales and marketing expense was $7 million. General and administrative expense was $6.9 million. Looking forward, we expect fourth quarter operating expense to increase sequentially. Third quarter adjusted EBITDA was $19.1 million compared with $27.6 million in second quarter 2025 and $17.3 million in third quarter 2024. Third quarter adjusted EBITDA margin was 19.8%, a new quarterly record on a product revenue basis. Third quarter GAAP net loss was $12.8 million. Third quarter non-GAAP net income was $17.7 million or $0.58 per share on a fully diluted basis. Turning to the balance sheet. We ended the third quarter with cash, cash equivalents, and investments of $265.1 million compared with $260.5 million in second quarter 2025 and $227.4 million in third quarter 2024. Inventory totaled $92.6 million, down $3.6 million from the prior quarter. Third quarter capital expenditures totaled $2.9 million. Free cash flow was $18 million compared with $4.7 million in third quarter 2024. Before turning to our guidance, I want to highlight two items specific to our results and outlook. First, in September, we issued $190 million of 0% convertible notes while simultaneously repurchasing $190 million of our 1.125% convertible notes. This transaction reduces our interest expense, lowers our underlying share dilution, and breaks our maturity profile into smaller tranches, the latter increasing our ability to leverage our balance sheet in managing that convertible debt. Second, we have consistently projected gross margin leverage in our long-term model. We expect that leverage to be on display in the fourth quarter, where we have embedded more than 100 basis points of sequential gross margin accretion in our guidance. Turning to our outlook, we expect fourth quarter revenue between $90 million and $93 million compared with revenue of $96.1 million in third quarter 2025, a quarter-over-quarter decrease of 5% at the midpoint. We expect adjusted EBITDA between $15.4 million and $16.9 million. On the bottom line, we expect non-GAAP net income between $14.7 million and $16.2 million, reflecting non-GAAP fully diluted earnings per share between $0.48 and $0.52. In closing, I want to thank the Impinj team, our customers, our suppliers, and you, our investors, for your ongoing support. I will now turn the call to the operator to open the question-and-answer session.

The first one would be about readers. Q3 is much stronger. You're talking about a little bit weaker Q4 versus seasonal up. Can you just talk a little bit about what that timing means? Was it pull into Q3? Is there a push out to Q4? And then assuming it is pull in, what does that mean for endpoint IC ramp timing?

Ezra, this is Cary. Thanks for the question. I'll take the first part of that. So originally, we thought we would grow systems revenue in the fourth quarter, but probably not achieve kind of normal seasonality because we guided our Q3 systems so strong. Q3 actually turned out stronger than we anticipated. So there's going to be a natural step down as we move from Q3 to Q4. We also saw, as Chris alluded to in the prepared remarks, some of the project timing just shift to the right, which is just exacerbating that a little bit. So instead of growing as we typically would, systems revenue in the fourth quarter, we're down slightly sequentially.

Yes. And Ezra, I will add that as I mentioned earlier, the size and scope of the rollouts remain consistent. We are observing some end users adapting in real time to the market conditions and modifying how they phase their rollouts and where they place their focus. Consequently, we're witnessing a slight delay in the fourth quarter due to these internal adjustments. I want to clarify that there is nothing to be concerned about regarding pullbacks; these are not pullbacks. They are simply real-time adjustments by end users in response to the current macro environment.

And then the second would be, I think we all saw the Walmart announcement with Avery. Can you talk a little bit about what that means in terms of timing and sizing for you guys?

Yes, I'll start, Cary, and then you can add. I assume you're referring to the grocery news from Walmart. We're very excited about that announcement. While it isn’t a surprise to us, we’re thrilled it has been made public. The focus in this announcement, as well as in the previous Kroger announcement, is about enhancing product freshness, minimizing waste, and reducing costs. This is crucial for our industry. As I mentioned earlier, we also pointed out a longer-term goal of enhancing the shopping experience, though there haven't been public updates on that yet. When you combine the opportunities for freshness and improving customer experiences, we’re very optimistic about the food sector. We anticipate modest food volumes through the first half of 2026, with growth picking up afterward. The pace of progress is influenced by the complexities of large-scale implementation. We have to consider the thousands of stores, various product categories, and the tens of thousands of employees who need training. We must also change our operational methods and strengthen our backend systems. Deploying these changes on such a large scale takes time, but as we've observed in sectors like aviation and retail, once companies start to see success, they tend to continue moving forward, prompting broader industry adoption. Overall, we feel positive about our current position and the rollout possibilities. M800 and Gen2X are well-positioned, and we will be focusing heavily on food opportunities in 2026. Cary, do you have anything to add?

Yes, Ezra, I'd just add that the volume estimates that are out there are not unreasonable. We view this as a multibillion-unit annual opportunity when it's fully ramped. But to Chris' point, it's just always difficult to judge the pace of deployments, especially one of this size, until we get into it. So give us a little time to figure out what the pacing looks like. But I'll just reiterate what Chris said. We're very excited not only about what this opportunity means with Walmart, but what it means to the rest of the grocery community, who can leverage the work that Walmart is doing.

Congratulations on the impressive results. Chris, I have a two-part question for you and another for Cary. Firstly, regarding the recent announcement about tagging for Walmart in bakery, meats, etc., is there a fundamental issue with tagging for vegetable groceries, leafy greens, and other products that make up a significant portion of the volume? Or is this simply the next stage in development? Secondly, Chris, I've noticed you mentioning e-commerce frequently during this call, which I haven't heard before in such detail. I'm trying to grasp its significance and whether you're planning to elevate the enterprise strategy to support e-commerce in some capacity.

Yes. So thank you, Harsh. Thanks for your questions. I will address both of them in order. So on the grocery side, you're seeing announcements in bakery, deli, and meat products. There are very significant expansion opportunities beyond that. As you've alluded to with produce, you should look at first at perishable categories as being the areas where grocers will see the most immediate opportunity. But then, of course, as I alluded to in the prepared remarks, there are also opportunities for the consumer experience, which requires tagging all the items. Specifically around produce, fruits, and vegetables, there is no fundamental limit that prevents us from tagging those items. It simply is a call mechanical limit or just kind of a functional limit, specifically, how do you do the tagging? What we're seeing some of already is grocers put some of the items in bags, and you can tag the bag fairly easily, or in spring containers, or other things. Individual items are just harder because getting the tag on and keeping it on. You will see innovation on the tagging front, but I think you're also going to see innovation on the packaging front to make that produce tagging possible. Turning to e-commerce. I use that word intentionally. Yes. I don't want you to read too much into it right now, but we are seeing two significant trends. One is an interest across many of our customers, enterprise end customers for a direct from DC or warehouse to consumer, and that's in the retail space, in the supply chain and logistics, and other areas. And the second one is 3PL opportunities. And so enterprises acting as 3PLs for other enterprises. The net of those I'm using is a broader e-commerce term. You are correct. It's the first time I've meaningfully used that term, and it was intentional and expect us to push forward hard into that e-commerce and attempt to expand and grow there. And as I said in our prepared remarks, I see opportunities for differentiation at the endpoint IC level, the reader IC level, and the software level to address those opportunities, both grocery and e-commerce.

My follow-up question to Cary is quite impressive. I believe you're suggesting a 100 basis points margin increase in the fourth quarter, Cary, if I understood you correctly. Is that entirely due to M800, or are there other factors involved?

It's a lot of M800. We're also now fully selling the 2025 costed wafers. So we're getting the benefit of wafer costs matched to 2025 pricing. But you're starting to see us flex the M800 muscle that we've been talking about for a while. Now I think the M800 ramps to volume runner in Q4. I don't think we reach the terminal mix though of the M800 until 2026 sometime.

There was a press release by what appears to be a competitor of yours talking about getting some traction using Bluetooth as RFID or like RAIN alternative. So I'd love to know, Chris, in particular, your take on this technology? Is it disruptive? Or conversely, does it have significant drawbacks, and what those are? And if it was a compelling technology, would you guys or could you offer this Bluetooth alternative as well?

Thank you, Chris. I'll do my best to address your question. I'll share some thoughts, and if you have any follow-up questions, I'm open to discussing further. RAIN RFID is excellent for item tagging, especially where there's a large volume and significant opportunities. We've mentioned before that other technologies like vision and Bluetooth beacons can complement RAIN RFID by addressing certain gaps. We can indeed create RAIN RFID ICs that detect pallet temperature or humidity, and these capabilities have been part of the industry standards since around 2012. However, the current volumes are quite low. Therefore, we are concentrating on the areas where the volumes are substantial. Complementary technologies can aid in overall adoption if volumes increase, allowing us to explore those options or continue using RAIN RFID for similar purposes. Right now, our focus is on large opportunities in food, e-commerce, supply chain, and logistics where the volumes are significantly larger. We will maintain this focus until we notice a substantial change. I see them primarily as supplementary technologies. Did that answer your question?

That did, Chris. I wanted to follow up on a couple of your comments. You mentioned the second large North American supply chain logistics vendor is now fully deployed in parcel delivery. Could you please clarify that?

Yes. Domestic parcel deliveries, not international, but you keep going. I interrupt you, I apologize.

So does that mean that the full infrastructure is fully deployed? Like do they have readers everywhere they basically need them? And then in terms of tagging individual items, has this reached an attach rate that you think is normal? Or do you think they grow from here as, call it, a percentage of parcels?

So I'm going to start with the first question first. For all of our Lighthouse enterprise, including that one, they're never fully deployed. They always have new use cases. They're always coming to us with new opportunities. They're always thinking and inventing, and they're looking to us to help them think and event and event. So you should look to us to continue talking about fixed reading opportunities, mobile reading opportunities, new tagging opportunities, and just more. I view our engagement with them as a true partnership, a close partnership, a partnership among friends. They trust us to not let them down. We will not let them down, and we will be there to support them. In terms of the actual tagging volumes, yes, they're fully deployed in domestic parcel delivery, but that's just domestic parcel delivery. There are opportunities in other areas of their business in international, and then in their expansion opportunities, including in e-commerce opportunities for them. So we see growth opportunities on the endpoint IC side, on the reader side, on software side, on helping them as a Lighthouse partner win in their respective market opportunity.

And Chris, this is Cary. I would just add that while they're fully deployed domestically right now, as Chris said, they haven't been that gateway for the entire year. So there's potentially opportunity on a year-over-year basis just as they're fully deployed next year.

Great job on the quarter. Maybe to dive in on some of the gross margin commentary, but specific to Gen2X and some of the software investment. I'm wondering a couple of things on the Gen2X front. Is it delivering shares now that is demonstrable that you're seeing in terms of your customer buying patterns? And in terms of the customization opportunity then from an endpoint IC standpoint, does this permanently move you guys into a different gross margin realm on the endpoint IC? And then maybe as a follow-up to that, talking a little bit more about software and recurring revenue, Chris, I'm wondering if you could flesh that out a little bit more in terms of what that means and where it goes. In the past, we've talked about things like authenticity. But how does that evolve? How does that look in the future?

Cary addressed the first part of the question regarding whether Gen2X will increase market share for Impinj. While it's still too early to provide a specific answer, the aim of launching Gen2X and offering it to the reading community for free is to tackle previously unsolvable challenges for customers and to boost Impinj's endpoint IC market share. An update on our success in growing market share will be available around February or March next year. From a gross margin perspective, Gen2X won't increase the gross margin beyond what was already planned for the M800, but it will facilitate greater adoption of that product.

I will address your question. The development of many of our Gen2X customizations originated when Lighthouse Enterprises approached us with a specific challenge, and we worked to solve that challenge. Our Lighthouse Enterprise accounts utilize Gen2X because we created certain capabilities to support their deployment needs. We see this as a way to maintain and expand those accounts into others. Regarding diversification, we recognize additional opportunities in Gen2X for innovation in the endpoint IC, the reader IC, and software. As we progress through Moore's Law and move to more advanced process nodes for the endpoint IC, we gain access to enhanced digital capabilities. These capabilities enable us to introduce features to the endpoint IC that were previously unattainable. You mentioned cryptographic authentication, but there are many more features yet to be explored. We have only begun to tap into this potential, and we plan to advance Gen2X capabilities alongside our Lighthouse Enterprises. They present us with challenges that we address, integrating solutions into Gen2X and continuing our progress. I am not ready to specify any new opportunities at this moment, but I want to emphasize that they exist. As for the software aspect of your question, allow me a moment to elaborate. In every information industry, building a hardware foundation is the first step. For instance, during the '80s and '90s, the mobile phone industry focused on hardware development. By the early 2000s, we saw the introduction of flip phones which were primarily used for calls. Only once the hardware foundation is sufficiently advanced can we start monetizing through apps, data services, solution management, AI, and many other avenues. Our industry is nearing that point of maturity, making it the right time to invest in information. We achieve this by investing in all layers of our technology stack—endpoint IC, reader IC, and software. There is an interesting aspect to endpoint ICs as they are recurring silicon; consider them as data carriers for SaaS and cloud services. As we enhance Gen2X innovations in the endpoint IC, we will apply those improvements to the reader IC and develop software solutions that increasingly resemble applications for enterprises and future consumers. This will create a positive feedback loop that supports our vision of facilitating the information economy within the Internet of Things through comprehensive enhancements in Gen2X.

And Cary, if I could just throw out typical pricing negotiations and decreases as we go into the first quarter, kind of early thoughts in terms of how we should be thinking about endpoint IC pricing in the first quarter and traditional seasonality.

Yes. We are just getting into endpoint pricing conversations right now. So I don't have a lot of color to provide at this point. We'll definitely provide insight next quarter.

Chris, I'm not sure if you can elaborate on this, but you were just kind of touching on it. But when you talk about enhancing Gen2X for food and e-commerce applications, can you help us understand a little bit more about what that might entail and what challenges you might be solving or addressing?

Thank you for the question, Jim. I want to be clear that I can't provide you with a detailed answer since I need to keep our product plans confidential. However, I can explain that the radio link operates as an endpoint integrated circuit communicating wirelessly with a reader integrated circuit, which is under software control. We've discovered from our Lighthouse accounts that we should tailor the endpoint IC, the reader IC, and the software. There are significant opportunities to customize all three, not solely to enhance radio performance but also to enhance applications that can provide more information and create new use cases. To illustrate this, consider the mobile phone market; by the early 2000s, much of the infrastructure was established, but it wasn't until Apple introduced the touchscreen that apps emerged, propelling the industry forward. This innovation transformed a hardware-centric technology into an information-centric one. We see similar potential for creating information value around RAIN RFID moving forward. While I can't disclose specifics about how we'll achieve this, the timeline, or the nature and quantity of innovations, I firmly believe we're only beginning to explore what we can accomplish.

Yes. So expect us to continue investing. Our OpEx is going to increase in the fourth quarter. We've held it fairly flat throughout most of the year. But it's going to increase in the fourth quarter. And then you know you've been following the story long enough that there's seasonal increase of OpEx in the first quarter and then that kind of increases again in the second quarter, then moderates thereafter. I don't see any change to the seasonal spend patterns that we've had in the past. But we will always stay true to the long-term model that we put together a few years back, and that is every single line item that we have in our spend will deliver leverage, less so in engineering, because that's our primary focus of investment. But still, we will have leverage in the R&D line. We'll have leverage in sales and marketing, and clearly leverage in the G&A line.

I think you said earlier, you're fairly comfortable with some of the numbers discussed out there in terms of volumes. But in terms of some of the numbers I've seen is the Walmart opportunity alone could be as much as 5 billion labels over the, say, once fully ramped over, say, 2 to 3 years. And since Kroger is maybe half the size of Walmart or maybe better bigger than that, we're talking about maybe a $7.5 billion combined between the two. First question is, are you comfortable with those sort of numbers? And secondly, I understand that Impinj is the sole provider in the pilots of, say, 40 to 60 stores at Walmart. But how long would you expect to remain the sole provider as typically customers suppliers over time?

We believe this presents a multibillion-unit opportunity annually once fully ramped. There are numerous categories within food freshness and many SKUs, so we need to evaluate the rollout timing for each category and SKU to determine the final unit count. Regardless of the scenario we consider, it will be a multibillion-unit opportunity each year.

Guy, you inquired about our status in the rollouts and pilots and how we plan to maintain our position. We believe we are very well positioned in many, if not all, of the ongoing pilots and deployments. This is due to the performance and quality of our products, the effort we've put in, and a strong emphasis on Gen2X. Additionally, we see a number of opportunities in the food sector for further innovation. We will be focusing on these innovations, integrating them into Gen2X, and aiming to distinguish ourselves from our competition in areas like readability, findability of items, scanability, and the reliability of our overall solution. You can expect us to drive these innovations and evaluate our success in developing them. If we achieve our goals, which I fully intend to do, we expect to maintain a strong presence in the food sector.

Yes. Just a very quick one. I know the last couple of quarters, you've talked about not guiding any turns. I didn't see that in the prepared remarks this time. Could you just comment on that?

Yes, this is Cary. I’ll respond to that. We are operating in a very dynamic market. In the third quarter, we experienced more turns than expected, and we also observed partners requesting changes to delivery timing and location. In a typical quarter for endpoint integrated circuits, we usually have 2 to 3 weeks after earnings to adjust business based on our current lead times. Since we haven’t seen a standard environment all year, we’ll take a similar approach to our guidance that was effective in the second and third quarters. Looking into Q4 for endpoint integrated circuits, we are anticipating very minimal turns, less than a week’s worth. On the systems side, we expect more normal turns to align with the typical year-end enterprise hardware purchasing patterns in the channel part of our systems business.

Thank you, Gary. I'd like to thank you all for joining the call today. And I'd especially like to thank you for your ongoing support. Thank you, and bye-bye.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.