Conference Transcript - RGEN 2026-06-03

Matt LaRue, Analyst — William Blair

All right. Good morning, everyone. Thanks for joining us for the Repligen management presentation. My name is Matt LaRue. I cover Repligen here at Blair. Very pleased to be joined this morning by Olivier Loyot, who is the CEO of Repligen. Before we get to the presentation, two quick things. First, the Richardson room upstairs is where the breakout session will be. And second, for a complete list of research disclosures or potential conflicts of interest, please visit williamblair.com. So, again, I'm very pleased to have Repligen here today, and I'll turn it over to Olivier.

Olivier Loeillot, CEO

Thank you. Can you hear me okay? Good. Yeah, perfect. So, I don't need this stuff. Perfect. Very good. Well, welcome to the Repligen presentation. You got used to my French accent in the meantime, so that's great. You don't need a translator anymore. So, we are going to go through a deck that's going to tell you about the beautiful story of our company. And I think some of you, most of you know the company already pretty well. But for those who don't know us, we are headquartered in Walsam, Massachusetts. We are a pure bioprocessing play. Sometimes I hesitate a little bit when we say that because we do have a business on the analytical side. Is the sound okay? Yeah, we do have a little play on the analytical side. But we are really a pure bioprocessing play, about 2,000 people overall. And we've got, for the vast majority of our manufacturing, of our product portfolio, we've got dual manufacturing side. Last year, we did $738 million US dollars. This year, you know, at midpoint of our guidance, we're going to be in the $800 plus million US dollar range this year. The words that you will hear me mentioning 20 times today probably is innovation. I mean, it's really our DNA. I mean, we've been growing thanks to our innovation. We are still very heavy on innovation. And then we love what we have launched. We love what we're going to be launching over the next several years. so just a few key takeaways I know sometimes you like the takeaways at the end I like them at the beginning so that at least you know what I'm going to be talking to you about today and what I really want you to remember innovation is really what has given us the right to win and will give us the right to win over the next decade or so but we have a very diversified portfolio of product as well I mean I remember a year ago I had to explain many of you and all of our analysts We are just not only ATF and Opus. Interestingly enough, ATF is probably the business that has had the highest amount of headwinds in the last one year. We've still been managing to grow 16% last year, and we're going to be outpacing market growth again this year. So we have a really very diversified portfolio of products, but also from a modality point of view, we're just not a new modality. I know last year, oh, you're just a new modality company. No, we're not. I mean, and we had a big headwind on gene therapy. We still grew 16% last year. We've got a lot of levers to keep on outpacing industry growth. And I mean, even with some of the headwinds we have had, we're still outpacing industry. So can you imagine how much we would be outpacing if we wouldn't have had all of this headwinds we just talked about? And I mean, just to mention a few of the reasons why we can outpace really market growth. The first one is really like we are bringing breakthrough solutions. About 80% of our portfolio, we don't really have competitors. So we are really creating new market segments that didn't exist before. I mean, ATF is a great example, but PAT is another great example where whatever happened with the market, we are still growing because we are creating just new market segments. And we have obviously a commercial clinical mix that is very different than the other guy. I mean, where the other guys are typically around 75, 80 percent of their sales going to commercial drug. It's only 40 percent of it going into commercial drug. Like, it's increasing. I mean, a year ago was about 35, probably three years ago was about 30. And as we are winning more and more designing in commercial drugs with both ATF, but more recently with protein as well, I would imagine that the share of commercial is going to keep on growing significantly over the next few years. The last one I would mention is Asia. I mean, we're a little bit subpar in Asia. I mean, we did about 17% of our sales in Asia last year. Most of our competitors are 20% plus. I mean, it's a great problem to have, probably for somebody like me, because I spend a lot of my time in Asia in my career. I think I know that region pretty well. So we are really doubling down in Asia right now to make sure we grow faster and with the right strategy in each of the countries in Asia down there. Finally, we are obviously working on expanding margin. I mean, you've heard us mentioning several times we have to get fit for growth, and both are linked to each other. And getting fit for growth for me is how do I make sure we've got the right leadership, we have the right infrastructure, the right software, the right tool to be able to run a business that's going to be a billion point five in a few years from now and probably 3,000, 3,500 people or so on. So we spend a lot of time on that, but we're making sure we combine it with improving our margin, which we have. I mean, you've seen it happening last year. You've seen it very, very importantly in quarter one. we are going to really make sure like we are balancing well top line growth versus improving margin. I'm confident we can do both. I mean, which is why we've put in place that transformation office that I'll talk to you a little bit about later on, where we are really, we know that's going to both accelerate top line growth, but at the same time, improve our margin further. And finally, we are really working on specific strategic priorities. I mean, I already mentioned the transformation office. We signed a very important OEM deal in China. I mean, about a year ago, I want to say, I started to tell some of you, I think the China market will start rebounding really, really fast. I mean, it happened even faster than I would have thought, to be honest with you, but we all recognize this market is just booming completely now, and it was really very important for us to articulate a really good strategy down there. So, moving to the next slide, let's focus a little bit on these innovative technologies that are giving us a right to win and defeat competition. So I won't go through the entire portfolio of products we have, but what you're going to see in the next couple of slides, we have a really broad portfolio of products. And when I joined the company about three years ago, I was delighted to see that because when I joined what was G Healthcare Licenses in 2010, my task was to build that A to Z offering that Cytiva has been really benefiting from a lot in the past several years and so on. So we have already a very broad portfolio of products. I mean, when I show you the workflow later on, I want to say that when you compare to the four big guys, we have probably a broader portfolio than two of the four big guys. There are two, and one of them is the one I'm coming from, which has got more or less everything, and another one probably that has got a little bit more than we do. But we have a really broad portfolio of products, meaning the capabilities we have, the opportunities we have to grow are absolutely massive by getting our product really embedded by big, big accounts. So without entering into too many detailed innovation, we talked about the breadth of the portfolio as well. The one I want to just mention here is really agility with care, because the reason why big accounts love us and want to do more with us than with the big guys is because we are more flexible, we are faster, we are obviously very innovative. And that is something we really want to make sure we keep. So in our leadership meeting, we constantly remind ourselves we are all coming from one of the big guys for one reason, which is we don't want to do exactly the way they do business, meaning we want to stay flexible, agile, fast, customer-focused, and so on. And that's really something we are partly focused on on a daily basis. Last but not least, I mean, everybody talks about digitization. We do it. I mean, we really – it's not only words. I mean, we're the only company that has got now five PAT technologies, and some of you have heard me saying, I feel like we're almost like where Google was in 1985 or something like that, where we have the ability now to grab a lot of data from process development, from manufacturing. We just need now to convince customers to share those data with us and then give them further tools beyond just grabbing the data via PAT technology with digital twin and later on with AI software so that they can develop their processes much faster, but also they can run their manufacturing in a much more efficient manner. So we think we are by far the leader in the field. We are really doubling down right now on PAT so that our customers can collect the data. We are going to try to do our best to make sure we get access to those data as well. And then we can help our customers in their digitization journey. Growth, I mean, you all know we've been growing very nicely. So I know why 2019 to 2025, just because in between there was a little event called COVID that like screwed up everything. So we kind of realized like instead of explaining without COVID, with COVID, let's look at where we were before COVID and where we are now because somehow the COVID noise is out now because there is no more COVID today and there was not in 2019. So we really had an 18% kegger in the last six years. And what's probably more important is look at the right side of that slide where our total addressable market has grown tremendously over the last several years. I mean, we have now about 13 billion U.S. dollars of addressable markets, where the total market, I know there are a lot of numbers floating around, is probably around 22, 24 billion. So we've got a big, big play into those markets. And with our sales currently, we probably have about 5% market share. So as you can imagine, we've got massive opportunity to grow on that very big market here. So what about our broad diversifying offering? I mean, this slide, I think, is important to show you what we've been achieving over the last 10 years. I mean, 10 years ago or so, our top three customers were two-thirds of our business. So talking about what was a real risky business, I mean, look at where we were 10 years ago. I mean, last year, our top 10 were only one-third. And in fact, our bigger account last year was only 7% of our total sales. So we have a very diversified customer base. But probably even more important, look at the franchise column here, where we were just a protein business back 10 years ago. And when I say protein, it was not really protein. I mean, we were just an OEM partner supplying ligands to the two big guys in the field, namely G Healthcare Life Sciences called Cytivanar and Merck Millipore. We've diversified that product portfolio completely over the last several years. And look at where we are now, where filtration last year was about 55% of our business, but we have three more businesses like Chromatography Protein and Analytical that are doing very well, growing very, very strongly, particularly during the last several quarters where they've been skyrocketing each of them, which is great because I would imagine that we'll balance our portfolio even more probably over the next four to five years. From a modality point of view, we are obviously pretty present on the new modality side. I mean, I would have thought we would be higher than 16%. I mean, imagine we wouldn't have had all of the headwind we had on that side and a year ago, particularly on that specific gene therapy program and so on. I mean, everything was well aligned that new modality would be above 20% for us probably in 25 and this year for sure. I mean, I'm still very bullish about it. I mean, we just have to bend down a little bit more. I mean, but think about the fact most big pharma funnel today, more than 50% of their funnel is in new modalities. So it's just a question of time. I mean, whether it's in a year or whether it's a little bit longer, it's going to come back. We started to see some really positive signal on the gene therapy side. I mean, you probably have seen, like, there was two FDA approval in quarter one. But no later than yesterday, the FDA has issued a guidance to potentially accelerate gene therapy drug approval, which we hope is going to bring back a lot of optimism on that side. So you'll hear me talking about new modalities for the next several years because we're still absolutely convinced about it. Talking about the breadth of the portfolio, I mean, you've seen that one probably already. I mean, we are really, really broad. I mean, we've got three main gaps, cell culture media, bio-reactors, and viral filters. We've got to play in more or less anything else. And then we obviously want to keep on broadening that portfolio of products and looking at the different opportunities, whether organic or inorganic, to make sure we've got a bigger play across the board here.

Matt LaRue, Analyst — William Blair

So we talked quite a bit about how we're going to outpace.

Olivier Loeillot, CEO

It's a bit of a different setup here. So I want to start with the first column, which is really we are creating solutions. I mean, you know, when you compete with four big guys who are all like anywhere between four times and ten times bigger than you are, I mean, you have to be differentiated. I mean, you can't just come with me to products and so on. We will have zero chance. I mean, the guys who have tried to do that, they are not particularly successful. So we're just trying to really make sure like we are creating new solutions. We are fixing problems for customers. ATF, again, is a perfect example. Right now, I mean, everybody is looking at downstream continuous manufacturing. that's probably an area where we want to help customers in the future because that's really a new solution that everybody has been hoping to get something to deal with, which has never happened so far. Digitization is another great example, as I talked about earlier. But at the same time, we're trying to increase our position. So let's talk about unshoring. I mean, we do have a seat at the table now. Thanks to this portfolio, we've really broadened over the last several years. Now we have a seat at the table. I mean, quarter-fourth last year, we received several RFPs that we never, ever received before. I mean, we started to win some. I mean, decision-making takes time. I mean, you all know that. That's a capex suspending tap that we can't wait to see opening. But, I mean, we're starting winning. I mean, and the opportunity for us is absolutely massive. I mean, I won't do the math that I've done. But for us, I think when you really take haircuts on what has been announced and so on and so on, and our market share, I think we have probably a 500 million US dollar hardware opportunity around the corner, when I say around the corner, for the next probably three to five years, which at our scale, it's a massive opportunity, obviously. And beyond that, obviously, we're trying to gain market share on the flat sheet cassette, which we are, and we're trying to gain market share on free management, where it has been more difficult, but we are doing everything possible to be successful here as well. And finally, we talked about clinical versus commercial. We talked about Asia as well. We've got something that I think nobody else has got, which is our key account management team, which is really built with people who have been in the industry for the last 20 years, 30 years, who know each of these customers personally, multiple contacts and so on. This has been a great tailwind for us for the last several quarters and so on. And I think we're still at the beginning of the story. We said earlier we're selling 2.5 times more of our products today than we were five years ago with those key accounts. I think on a scale from one to 10 with those big accounts, I think we're just between two and three. So we've got a massive opportunity to further grow with those guys in the next several years here. So we talked about the 80% differentiator, so I won't repeat that again. Maybe there's a new product introduction, and that's a metric that we're tracking very specifically, and having been in that industry for the last 30 years, I can tell you we are far better than anybody else on that side, meaning last year about 9% to 10% of our sales came from product we launched in the last three years. That's very unique, and I can guarantee you. I mean, we're spending about 6.5% of our sales in R&D every year. I mean, it's significant, much more than others, but considering the size of others, you would imagine they should be able to generate much more innovation than they do. We're launching typically about 10 new products every year. I personally think it's almost too many, so we're trying to figure out how maybe we reduce it a little bit so that our sales team can refocus on a smaller number, but that's a real track record for us here. So digitization, let's spend a few minutes here because that's really close to my heart. And I kind of alluded a bit to it already, but with PAT, you're grabbing the information. But then you need to make sure you're integrating PAT in line with systems so that not only you're grabbing the information at line, because that line is great, but that line is not really helping you as much as in line. In line is enabling you to increase your yield tremendously because you know exactly when you're going to have to stop your batch, but also you avoid all of the risks of cross-contamination because you don't have to take sample every five hours. So combining PAT technology with systems is going to enable customers to be much more efficient, but indeed the next step is reintegrating digital twin capability like the NovaSign one, which we are including in the next TFF system we are launching at the end of this year, beginning of next year, so that people can really understand their processes much better than they do right now. And then the future vision, it's AI, obviously. I mean, we all hear about that on a daily basis. And fortunately, many people talk about it without having a clue what they're talking about. I can guarantee you this is going to happen. It's not going to happen next year, probably. It's probably going to be another couple of years before we're at the stage where we can sit with the open AI, the entropic of this world, and telling them, hey, guys, we're the leading company in bioprocessing to enable the biopharma industry to be more efficient. We need to partner together because we have access, or our customers at least have access to the data. How do we make sure now together we can develop the tool that will enable them to be much more efficient? So it's on our radar screen. I think we are far ahead of anybody else. It's going to probably still take a couple of years, but we are very excited about that for sure.

Matt LaRue, Analyst — William Blair

I think I mentioned that, so I'll skip it.

Olivier Loeillot, CEO

Asia as well. So let's maybe look at China because I think some of you heard me saying a year ago, So I think China is going to start to rebound and look at where we are today. I mean, if there is one thing that has changed completely over the last one year, it's really China. And you've seen all of these licensing deals that are happening between U.S. company and Chinese company just in the last one week. I mean, you've got BMS first, I think $15 billion. Pfizer over the weekend, I think $10 billion. I mean, the total investment is massive. So what does it mean? It means two things. It means, first of all, like U.S. and finally starting to miss a little bit of innovation coming from those small biotechs that had a little bit of a headache getting funding in the last three to five years. But beyond that, it means like China, which had to really switch from being a biosimilar type of industry, has become now really one of the most innovative, partly on the antibody drug conjugate, but also on the bi-specific antibody side. It means like this market is becoming now a real big engine of growth for bioprocessing company, which is why we've been very focused on it. We just signed an OEM deal with a partner a few months ago or so. We are working on several options to be able to re-grab the growth that we think is going to come and it's going to be massive over the next several years in that specific country here. The commercial mix, I think we talked about as well as the new modalities, so I'll skip this one. I think this one is a new one, and I mentioned a little bit of it already. We have a really very diversified portfolio of products. I mean, think about it. Last year with the new modality headwind we had, and then with a few other stuff that happened, we still managed to grow 16%. And this year, Q1, for me, is a showcase. I mean, unfortunately, filtration was not doing as well as we would have hoped because a couple of our big accounts inform us, like, they were managing a little bit of their inventories this year. But look at the other guys. I mean, analytics grew more than 50%, in fact, in quarter one. We say we're going to grow probably more than 20 in the full year, but we grew more than 50 organic, more than 40 in quarter one. Chromatography, it's about four or five quarters in a row. Like, we've been growing double-digit, if not even above 20%. And protein, think about it. Like, two years, three years ago was like the nightmare scenario where our two big OEM partners tell us at the same time, we are not going to work with you anymore. Not only we've managed to recover from it, but we are generating growth, 15% growth, mid-team growth in quarter one on a very tough call because quarter one of last year was very high. So we have a really broad portfolio of products. I mean, if there is one key takeaway for you today is imagine we wouldn't have the headwind we have right now. I mean, the growth would be absolutely massive. I mean, so that's really something I just want you to understand today. capital equipment obviously something we are very very focused on because we did have a pretty good year partly during quarter two quarter three of last year and then we started to see a little bit of a slowdown we are still doing okay because analytics is booming but also our metanova stainless steel mixer business has been benefiting from the very high growth both in china and in india as well but the rest has been definitely a little bit slower than we would have liked That is a massive potential tailwind for the future. I mean, you heard me about the number. Our funnel of opportunity for hardware right now is more than 20% higher than a year ago. We're just waiting for customers to make decisions now. And once the tap is going to open, that's going to be for sure a massive opportunity for all of us, by the way. I mean, I don't want you to think it's only a few numbers of companies having those hardware to offer. I think it's going to become very soon a big seller market, and most companies are going to benefit from that very grandly here.

Matt LaRue, Analyst — William Blair

So with this, are we confident that we can outpace market?

Olivier Loeillot, CEO

Absolutely. I mean, think about it. Last year, 16% organic non-COVID growth. We definitely outpaced market by more than 5% last year. This year, obviously, with the headwind we have on gene therapy, we're going to be a little bit less than 5%, But we're absolutely very convinced we're going to be able to outpace in the near term, which is why we said we're going to double the size of the company in the next two years. And we're going to make sure at the same time we are improving margin as well, which is why we said we are going to target 30% EBITDA margin by 2030 as well. So we're on the right pace. I mean, here you've seen, I mean, a really great start of the year, a good year last year, a great start of the year. We also decided to put in place that transformation office. not just to enable us to accelerate that EBITDA margin because it will, but it's not the primary target. The primary target was really to make sure we accelerate the getting fit for growth, meaning improving the way we operate the company from every angle, IT, AI implementation, but also site consolidation and so on and so on. But with volume plus price plus the transformation office and the OPEX leverage, we're absolutely extremely confident about our ability to move towards a 30% EBITDA margin. So just a couple, I think I mentioned quite a bit of that already on transformation of this ITI I did, one thing maybe because it's also helping us to accelerate further top line growth, that transformation of this, think about it, we are still considered to be somewhat a bit of a newcomer, particularly for hardware, so the first thing you need is to make sure like once you start to get wins and you deliver to those customers, you are not letting them down, I mean that's the most important ever, imagine you decide to switch your IT supplier at home and so on, your net supplier, and then suddenly they let you down after a month. You're going to go back to the previous one right away. I think here that's something we are really focused on to make sure like we are supporting our customers, partly from a service point of view. I mean, I've mentioned when I joined the company two years and a half ago, so it was taking us four months, four months between the time we were delivering an equipment to a customer and we're installing it. Can you imagine you buy a big piece of hardware at home and then your suppliers tell you, see you in four months, you don't like that, right? So now we're down to a week and a half. I mean, that's just an example of getting fit for growth and making sure we bring the right level of service to our customers so that they want to keep on doing more and more with us. Site rationalization, we have far too many sites. I mean, for a company of our size, I mean, we've got 17 manufacturing sites. I mean, so we are working every year on how do we really consolidates that so that and then what we've done is we have 8 to 10 of our sites that we know are the site for the future and now any decision we're making of investment has to be on one of these 8 to 10 sites and at the same time we're trying to shut down the other one so that we've got much lower number of sites in a few years from now. Okay, so just looking at time so delivering on strategic priorities so we've delivered last year across the board and I was really happy obviously above market growth, 16% organic non-COVID. Sorry about the non-COVID, I got that question several times. The reason why we are the only one probably that still had to talk about non-COVID last year is because we had a restatement in 2024 where there was a big chunk of sales happening on COVID. That's the only reason why I promise you, well, I can't promise you because maybe COVID comes back, but I hope we don't have to mention COVID anymore in the future. Anyway, expand margin, expanded the operating margin by 90 base points. I mean, in fact, it was 240 base points organically, but what we reported out was 90 because of the acquisition of 908. We continue to innovate. I mean, we had several very important launches last year, but he's solo VP+. I mean, just spending maybe a minute on that. But when I joined the company, and having been in a different world before, I couldn't believe we never ever launched a second version of any hardware we launched in the last 10, 15 years. I mean, there is just a huge opportunity for replacement upgrade market for any hardware you're selling on the market. And partly when you've got installed build like Solo, where you've got more than 2,500 units, and same with the little sister, which is our small-scale TFF. I mean, the first thing I told the team, we really have to develop a new version of our install base. Look at one of the reasons why we have this huge tailwind, and it's just at the beginning of it with the CTEK business, is because we are generating now that replacement upgrade market that is coming on top of the organic growth of this type of business. We are doing the same. We are going to launch a small version, small TFF version of a similar install base of several thousand of units beginning of next year. That should be a huge tailwind for filtration next year.

Matt LaRue, Analyst — William Blair

M&A, very important.

Olivier Loeillot, CEO

I mean, the last acquisition was a year ago. We've been really upgrading very much the way of working of that team. I'll be honest with you. It was a small shop, so they needed to get really fit for growth, probably much more than we do ourselves. We spend a lot of time on that. We have improved the funnel tremendously, and we think that's going to be a very nice big growth for us over the next five to ten years here. And finally, again, the hire. I mean, you hear me talking about people. I mean, when you look at the organization we have today, I mean, we have an incredibly strong team of leaders. I mean, and with all the credit I give to Tony for what he has built and an incredible franchise, we really needed to move from a couple of people making decisions for the entire company to have now a team of people that is really capable to absorb and empower their own team to move faster and so on, because that's going to be absolutely critical for us over the next five to ten years when we become a multi-billion US dollar company. And this year, they are pretty much the same, to be honest. I mean, if you think about it, the above market growth is still obviously line of sight for us. We are particularly focusing on key accounts and on APAC as well. I mean, I talk a lot about China, but a country like Korea for us is a massive opportunity. I mean, we've done a really good job over the last couple of years to get traction at some of the big actors in that region as well. Expand margin, we are accelerating it right now. And with the transformation office, we said we probably can accelerate by 100 base points as early as next year, which we are very happy about. R&D, we have multiple launch happenings this year. I mean, aparting on the protein side, I mean, we don't talk too much about it because protein probably takes a little bit more time. But when I look at between the catalog product we've launched and the multiple custom projects we are working on very often for what are commercial drugs that have been on the market for several years using resin that were not productive enough and so on. I mean, it's going to be a bit lumpy in the next couple of years, but we've got massive opportunity coming out of that over the next several years. System, we are still developing a lot of new features. We just launched a new version of RS10 at high pressure, which has got a lot of traction. And we are going to add some more PAT technologies on each of our system over the next couple of years. M&A remains really our top priority number one in terms of capital allocation. I mean, I get the question asked very often, hey, well, what about buying some of your share back? And so we still believe at this stage we can do much better with our money, which is why we're still looking at a lot of opportunities on that side. And finally, still very focused on getting further fit for growth. This year, our biggest area of focus is really on the IT side. I think that's it.

Matt LaRue, Analyst — William Blair

17 seconds, not too bad, right?

Olivier Loeillot, CEO

Maybe some time for you still.

Matt LaRue, Analyst — William Blair

Yeah, thank you, guys. Yeah, thanks very much, Olivier. Maybe I'll just ask one question before we go, if that's okay, which is you talked on the quarter one call about meaningful pickup of orders in March that went into April. I feel like maybe there was some confusion at a recent investor conference. So I'm just curious, you know, if you could talk about maybe the strength into the second quarter and your perspective on how the business is going.

Olivier Loeillot, CEO

Yeah, no, thanks for the question, Matt. I mean, as you know, we typically don't talk too much about the current quarter, but I think for once I'll make an exception here. But maybe let me take a quick step back first. We had a massive order intake in quarter four. And when I say massive, unfortunately, I make a lot of bad decisions. Sometimes I decided to stop talking about orders in quarter three. We had the highest order ever in the company in quarter four, which is why we entered into 2026 in a very strong manner. What was somewhat a little bit disappointed is the first six weeks of 26 were a little bit slower. So we were wondering, well, probably because quarter four was so strong. But then we started to see a really nice acceleration in the second half of quarter one, and this has kept on going very strongly so far in quarter two. So we are really very confident. I mean, if you think about the fact we delivered midpoint of our guidance in Q1, we already said we're absolutely very confident we're going to be at least at midpoint of our guidance in Q2 as well. We are probably one of the very few that is in that situation right now. I mean, if you look at many others, I mean, they have to see a real acceleration between quarter one and the rest of the year or even first half and the second half. I mean, for us, I mean, we wouldn't need to see any improvement of the current situation to be able to deliver midpoint. I mean, in fact, we would need to see degradation to be at the lower hand of our bracket. So from that point of view, we are pretty confident about the year here.

Matt LaRue, Analyst — William Blair

All right. Message received. Thanks very much, everyone, for joining us. Olivier, thank you very much. And for those who want to join us, it's in the Richardson room upstairs.