Venture Global, Inc. Q2 FY2020 Earnings Call

Greetings. Welcome to Vonage Second Quarter 2020 Earnings Conference Call. I will now turn the conference over to your host, Hunter Blankenbaker, Vice President of Investor Relations. Thank you. You may begin.

Thank you, operator, and good morning and welcome to our second quarter 2020 earnings conference call. Speaking on our call this morning is Rory Read, Chief Executive Officer; and Dave Pearson, CFO. Also joining us is Omar Javaid, President of the API platform; and Rodolpho Cardenuto, Head of the Applications Group. Rory will discuss our strategy and second quarter results, and Dave will provide a more detailed view on our second quarter results and third quarter and full year guidance. Slides that accompany today's discussion are available on the IR website. At the conclusion of our prepared remarks, we'll be happy to take your questions.

Thanks, Hunter. Good morning, everyone, and thank you for joining us today. I'm pleased to be speaking with you on my first conference call as Chief Executive Officer of Vonage. I hope you and your families are safe and healthy, and I look forward to meeting many of you over the coming months. Having been in the role for the past 30 days, I would like to cover the following key areas in my opening remarks. First, based on early learnings, my initial thoughts on how we can take Vonage to a new level of execution and further growth. Second, the process we have embarked upon to ensure we are efficiently and effectively allocating our skills and resources towards driving the best trajectory for our business moving forward; and finally, our strong second quarter results. The opportunity to join a company like Vonage is rare. Vonage was born out of innovation, and through that innovative spirit has reinvented itself into a global leader in cloud communications, helping businesses across the planet accelerate their digital transformation journeys. Vonage is in the right place at the right time in a very large and growing market. I'm excited to leverage my experience driving large global transformations and operational execution to help lead the company forward into its next chapter. I've been in the technology and software space for the past 38 years. I understand the power and value of cloud solutions and what they offer to global businesses. And I am passionate about innovation, execution, fact-based decision-making, and accountability.

Thanks, Rory, and good morning, everyone. Let's begin with a review of the second quarter on Slide 8. Second quarter Vonage business total revenue was $226 million, ahead of guidance and representing 75% of consolidated revenue, excluding USF. Over the past year, business revenue grew from two-thirds to three-quarters of the Vonage total. From Slide 9, business service revenue increased 18%. Service revenue growth is our focus, as we deemphasize access circuits and desk phones. Service revenue also excludes USF, which was $5 million in Q2, down $3 million. As we discussed last quarter, we are now charging our customers lower USF fees, which are a pass-through, based on a study that concluded that our offering is mostly software rather than telco-related services. Within business, API platform revenue was $103 million, up 32% and well ahead of our expectations. Revenue from high-value APIs, primarily video, doubled sequentially versus Q1. API revenue now represents 47% of business revenue, excluding USF. Revenue from applications was $123 million, also ahead of our expectations. Of this, $109 million was service revenue, which increased 7% GAAP, led by 14% growth in MME. Moving to Slide 10. Vonage business segment revenue churn was 0.9%, down versus 1% in the year-ago quarter, and monthly service revenue per customer was up 16% to $509. Both KPIs demonstrate our continued move up market. On Slide 11, business service margin was 53%, up 1% year-over-year and the fifth straight quarter of flat or better business service margin. This reflects the move to our own higher-margin products, including Vonage Business Cloud and video APIs. Moving to Slide 12. Consumer revenue was $84 million. Churn of 1.5% was down from 1.7% in the prior year. In the quarter, we took a lighter touch on terminating the service of customers who are behind on payments, meaning normalized churn would have been 1.6%, still strong and a year-over-year improvement. Average monthly revenue per line was $27.59, up $0.70, reflecting higher USF and targeted price increases implemented in the first quarter. We ended the quarter with approximately 1 million consumer subscriber lines. Two-year plus tenured customers now represent 93% of our consumer base and five-year plus customers are 76%. Engagement with our product, measured by outbound calling minutes, increased in the second quarter due to COVID. Based on the performance and predictability of the consumer segment, we project it will produce in excess of $600 million of after-tax equity free cash flow over the next 5 years with significant terminal value after that. Now moving to income statement cost items on Slide 15. Consolidated sales and marketing expense was $91 million, down $5 million versus the prior year and up $5 million sequentially due to higher brand spend. Engineering and development costs were $20 million, up $3 million. Sequentially, we added more than 70 team members in product, technology, and engineering as we continue to invest in our platform. Engineering and development expense plus capitalized software totaled $30 million, which represented 14% of business service revenue. General and administrative expense was $43 million, up $6 million. The increase is driven primarily by consulting fees and CEO succession costs, including search, legal and severance, some of which was non-cash. Turning ahead to Slide 16. GAAP net loss was $8 million and adjusted net income for the quarter was $10 million or $0.04 per share, both lower than the prior year because of a significant tax benefit back in Q2 of 2019. Second quarter adjusted EBITDA was strong at $42 million, up $4 million year-over-year. Moving to Slide 17. CapEx for the quarter was $12 million, flat versus the prior year. Adjusted EBITDA minus CapEx was $30 million. On Slide 18, we ended the quarter with $543 million of net debt, resulting in net debt of 3.2x LTM-adjusted EBITDA, leaving us significant liquidity under our 4.5x borrowing covenant. We reduced net debt by $25 million in the second quarter and intend to reduce it further as the year progresses. Moving on to Slide 19. We are updating 2020 guidance to reflect the strong second quarter and our experience with how COVID is affecting our business. Clearly, the macroeconomic environment is uncertain. But with the visibility we have today, we are increasing our projection of 2020 GAAP business revenues to the range of $885 million to $900 million. Embedded in this guidance are the following trends: with regard to API, continued depressed levels of travel and hospitality usage, offset by elevated e-commerce and video usage; for video, we believe that we have seen the COVID stay-at-home peak, but continue to see very strong new customer formation; and with regard to applications, positive churn trends and high customer engagement, offset by ongoing customer credit requests and a pipeline that has not yet rebounded to pre-COVID levels. For consumer, we expect 2020 revenues in the $330 million area, a $5 million increase due to a projected increase in USF fees. We continue to expect full-year 2020 adjusted EBITDA of between $150 million and $155 million. With regard to the third quarter, we project business segment revenues in the range of $226 million to $228 million, including $6 million of USF. Consumer revenues in the $81 million area, including USF of $11 million and adjusted EBITDA in the $36 million area. As this is my 30th and last earnings call as Vonage's CFO, after more than 7 years in the seat, I would like to thank my colleagues at Vonage, the Board, and investors for what has been an experience beyond what I could have imagined. It was a privilege to work with all of you. Knowing the team and assets of Vonage and having seen Rory in action over the past 6 weeks, I'm confident that Vonage's best days are ahead and I look forward to being a shareholder for a long time to come. I'll now turn the call over to Hunter to initiate the Q&A.

Okay. Thank you, Dave. Operator, let's go ahead and turn it over to Q&A, please.

Our first question is from Rich Valera with Needham & Company.

Welcome, Rory, and best of luck in your new role. I have a question about the API business. You mentioned in your prepared remarks that you believe the CPaaS market is larger than what industry analysts perceive. Could you elaborate on that? Additionally, could you share your thoughts on the sustainability of the trends you are observing in that business, both in the near term and in the long term? Lastly, what are the margin implications for the API business as your focus shifts towards higher-margin offerings? It's a multi-part question, but I hope you can provide some insights on these topics.

Sure, Rich. Thank you for welcoming me, that's great. I think from the perspective of the industry, CPaaS is definitely part of a major communications trend that we're seeing across every industry. I've been in the industry for the past 38 years, Rich. And there's no question the way that companies are interacting with individuals through communication and digital relationships is only accelerating, and COVID-19 has, in fact, accelerated that activity. I don't believe that's a temporary event. I think that's only going to accelerate. And I think, Rich, over the next 5 to 7 years, we're going to see communications, APIs, and solutions embedded in pretty much every workflow, every industry, every application across the planet. I don't think that's one of the key drivers for the reason I chose to join the team here at Vonage. I think it's uniquely positioned to participate in this. I love the product portfolio in terms of the diversity and the strength. I think API services and the way that applications are created and workflows are created, this is not a minor trend. I think this is a technological tipping point that we see occurring here with video, with voice, verification. And the way that customers want to be interacted with for support services, sales, it's really a fundamental shift. So I think that people are underestimating that this is just an event that's occurring because of the pandemic or tampered by that. I think it's a secular change in the way that customers and businesses will interact over the next 5 to 7 years. And I think that it's accelerating, and I think we'll see a bit more of that. I think our product set is really well positioned in this space, Rich. And I think that from the standpoint of opportunity, you're going to see us using our business optimization and alignment project to really drive additional focus here to capture that opportunity, sure. Will we see some moderation as the pandemic moderates itself? And when that happens, was that in the next 2, 3 quarters or the next 6 or 7 quarters? It's really hard to say. I do think you will see some moderation, but the overall trend is up into the right, for sure, in terms of this segment and this space. I don't have any question about that. And as we look at our mix and as we mix up now over 20% of our CPaaS revenues are now in that high-value segment, led by our leadership in video, I think that's only going to help us on the margin side over the next 2 or 3 years. I think that's an ongoing trend. I think it will continue. 163% year-over-year growth, sure, that's very sporty. But I think that trend of growth is going to continue, as I mentioned earlier. Does that help?

Yes, very helpful. And again, best of luck.

Thank you, sir. Omar, did you want to add any color on that one before we move on?

Thank you, Rory, and great question, Rich. I believe Rory addressed much of this. The additional point I want to make is that we've previously discussed our confidence in the market being larger than many analysts estimate. Historically, this market has been driven by digital natives, and we anticipate that trend will persist strongly. However, we also noticed an increase in enterprise participation. According to Gartner Research, enterprise engagement went from 5% to 30%, which represents a significant opportunity. The COVID pandemic has dramatically accelerated this shift. As Rory mentioned, companies are re-evaluating their digital strategies and investing heavily in digital transformation. Therefore, the opportunity lies in every application available, including those being considered by companies, which is the basis of my confidence.

Our next question is from Alex Kurtz with KeyBanc Capital Markets.

Welcome, Rory. Could you elaborate on your earlier comments regarding the UCaaS and CCaaS platforms and the necessity for optimization? How do you anticipate this will develop over the next year? Many investors I speak with regarding the stock and the company are uncertain about how you plan to derive value from having all three platforms in-house, especially with the independent platforms now integrated into Vonage. While you're clearly performing well with CPaaS and the market is robust, how do you plan to grow the UCaaS and CCaaS segments to match the growth rates of independent peers in the current marketplace?

Thank you, Alex, for the question. When joining a new company, it’s essential to delve into operational execution, efficiency, and the overall business strategy and plan. As a result, we have initiated a business optimization and alignment project aimed at establishing our strategy and operating plans for the next 30 to 36 months. I have observed that we have very good products and the assets we've accumulated are strong. There is minimal need for strategic additions, although we will consider enhancements as they arise. The timing is right for our assets to be integrated. The Vonage Communications Platform essentially serves as an API platform with various underlying services, and we are focused on developing targeted applications in unified communications and the contact center sector. Our goal is to align our approach with our customers' workflows and applications. Historically, our go-to-market strategy for unified communication and contact center products has been somewhat singular and direct, which may have limited effectiveness. There are significant opportunities to optimize this approach. For smaller and mid-sized businesses, we see the potential for growth through e-commerce and self-service support. We aim to enhance our channel strategy, ensuring a streamlined support process and increased efficiency for our business partners. Hiring Curt Allen was a strategic decision by Rodolpho and the team. His energy and passion for the industry are valuable as we look to shift our trajectory through targeted programs and activities. Our enterprise growth is strong, showcasing our ability to effectively reach large businesses such as Domino's, and we will continue to focus on tailored approaches for each market segment. The applications we develop will be purpose-built on our communications platform, leveraging the same API services our customers use. To improve efficiency, we will adapt our support and sales models to align with customer segments. In the contact center space, we have a robust product centered around CRM, and we aim to build on that strategy. Our Vonage Business Cloud solutions are also performing well, with strong margins, and we will target those customers with our go-to-market strategy to drive growth. This is the direction we are taking for optimization and alignment. Rodolpho, would you like to add anything?

Yes. Maybe. Rory, thank you, and thanks, Alex, for the question. If you look at UCaaS, the market is growing at 14% with a combination of the two products.

We're experiencing some technical difficulties on your line, Rodolpho. We'll have to move on to the next question. I appreciate that question, Alex. Do you have any follow-up questions before we proceed to Ryan?

Look, on the consumer side, there was a decision, I think, earlier this year to think about exiting that business. I don't know if you want to provide an update on that. I didn't see any content in the deck that would suggest that, maybe I missed it, but maybe just a really quick view about that process.

Sure. We did briefly cover it. I think what we would say is, we're going through that process. We continue to go through that process. We've incorporated that into the business optimization alignment, a project that we have underway, and we expect to complete that project later this year. That business is throwing off at least $600 million of cash over the foreseeable future. So it's a good business, and I've had an opportunity to look at it in terms of its execution. Mr. Walker and his team are really doing a fine job of executing there. I think they are doing it without distraction, and they are doing it efficiently. But we're going to continue that process, look at it and complete that process and give you an update in the fourth quarter. Thanks, Alex.

Our next question is from Ryan MacWilliams with Stephens.

Perfect. And Dave, congrats again on the retirement, even though this may not be how you exactly envisioned it, given COVID. Just on the API side, can you talk about any changes to the geographic revenue breakdown or the geographic additions of new developers since COVID, just given the different tailwinds and headwinds to different customer verticals and use cases as a result of COVID?

Sure. I'll pass that to Omar in just a second, but basically, we continue to see strength across all geographies and across all of the high-value APIs. If anything, that's definitely accelerated at 163% year-over-year growth. And we expect that that's, again, a fundamental shift. I don't think that as COVID, the pandemic, dissipates at some point in the future that things go back to the way they were. I think there will be some moderation, but there's no question that this has only accelerated the move to digital transformation, and that move to digital communications and relationships will only continue to go over. Okay. Omar, why don't you give a little bit of color on that for Ryan, please?

Thank you, Rory, and thank you for the question, Ryan. To elaborate further, we're experiencing growth across the board without a specific geography standing out. One positive development is the recovery we're seeing in the Asia Pacific region regarding traffic, which has returned to pre-COVID levels. This performance in the second quarter has been encouraging as we look ahead to the latter half of the year. Overall, we've been performing strongly across various markets. Additionally, we're seeing increased engagement, particularly in the Americas, especially in the U.S., with notable successes and good usage as highlighted by Rory in his opening remarks.

Our next question is from Catharine Trebnick with Colliers Securities.

Dave, I'll be sad to see you go. Good luck in your retirement and Rory, welcome. So can we put a finer point on sales and marketing and G&A? You're down in sales and marketing, but up significant year-over-year in G&A? And how should we think about that going forward?

Sure. I'll have Dave elaborate on the drivers for that in the quarter, but I want to set expectations for the future. There is definitely an opportunity to streamline and enhance efficiency in both of those areas, allowing us to focus our capabilities and resources on the most promising growth areas. I've highlighted these areas, especially regarding API services and work in the contact center and UCaaS space, by tailoring our go-to-market strategy. I expect that we can achieve greater efficiency and streamline operations over the long term in both segments. Now, I'll hand it over to Dave for further clarification regarding the quarter.

Yes. Thank you very much for your comments, Catharine. In terms of sales and marketing, it's important to note that customer care plays a significant role. When you see sales and marketing decrease in certain quarters, it's partly due to the reduction in consumer-related customer care and other efficiencies. Overall, there was a sequential increase in sales and marketing, primarily because we launched our new brand campaign, which was heavily invested in during Q2. We expect to maintain this level for the remainder of the year as we continue our brand advertising. Additionally, we've noticed fewer commission payments and reduced travel and entertainment expenses. However, I anticipate that this will remain steady or slightly increase if there is more activity in commissions and travel. As for general and administrative expenses, there are two main factors to consider this quarter. One is the ongoing consulting fees, which will persist and are not included in adjusted EBITDA, but do appear in the G&A section of the income statement. Initially linked to the consumer view, these fees are now integrated into the project that Rory mentioned, and this will carry into Q3. Moreover, in Q2, we incurred significant costs related to the CEO transition, which impacted the income statement but not EBITDA. Generally speaking, organic G&A should remain relatively flat for the rest of the year. With Rory's project, we expect those costs to decrease as we move forward.

Our next question is from Tim Horan with Oppenheimer.

Good luck, Rory, and thanks, Dave, for your help. Domino's, can you give a little bit more color what was differentiated about your product? And I guess maybe the same thing for your high-value API services. How differentiated are you? Do you think you're taking share in that high-value side?

Sure. I'll address the second question and then have Omar provide some insights. Over the past four to six weeks, I have been learning about the business and delving deep into our API. I was already familiar with our API services before joining Vonage, so I recognize the real strength in our offerings. We have a strong leadership position in video services and our approach to creating integration points is distinctive. Tim, there was another part to your question at the beginning, was it regarding Domino's? I didn't hear you clearly, and I apologize. Could you repeat the first part of your question?

Yes. Sorry, can you hear me okay, Rory?

Yes. I can now. Thank you.

Yes, sorry. So the question is Domino's, I think you said you won it because you had differentiated services. Just trying to understand what that differentiation was.

Yes. This one is kind of interesting, right? So there's a couple of things that really made us strong in that space. And in an enterprise solution, particularly because of the multi-location capability, we've built that into the unified communications space. I think that's really an important driver in our wins in that enterprise. And remember, when I talked about the go-to-market around those unified communication and contact center app that we had to tailor it and the product was particularly strong and small and mid. This is just the idea that that same kind of multi-location implementation with the control points that we put over top of it gave it strength. And then the voice API and the API work on top of that really, I thought, gave us differentiation. But why don't we go to Omar first on the high value, and then we will continue? Omar, want to add a little bit of color on high value and our differentiation? I touched on it at the beginning.

Sure. Regarding high-value differentiation, I'd like to discuss a few different products. We emphasized video earlier. As you may remember, we acquired TokBox in late 2018, which provided us with a significant number of high-profile customers and substantial expertise in that area. We've been pioneering work with the underlying technology known as WebRTC, allowing us to hold a lot of intellectual property and have great customer references. We've also made investments in security and certification, which are crucial for markets like health care and financial services, as well as some social networking use cases. Those strengths form one aspect of our differentiation. Another point is that our API products are particularly attractive to technical customers, such as engineers. We've won awards for making our software user-friendly and easy to implement, which is another differentiator. Regarding Domino's, to add to what Rory mentioned, their structure includes both corporate and franchise locations, with many franchisees involved. They needed more than just a basic phone system, and while several companies can provide that, our unique approach allowed us to offer a flexible solution tailored to their needs, supporting their digital transformation effectively. Furthermore, as significant as Domino's is in the U.S., they are also expanding globally. Our ability to operate and support customers worldwide has been a key strength, especially in the early stages of our API business.

Our next question is from Meta Marshall with Morgan Stanley.

This is Eric on for Meta. Maybe just one for us on your Salesforce relationship. I understand pipelines are a bit less full on the application side overall, but how has that relationship continued to develop? And are you seeing pull-through if you see when making a contact center sale, anything kind of that you've seen there?

Sure, Eric. I think two good points on your question. From the standpoint of Salesforce, there's definitely continued activity and that's a really good strategy in terms of contact center focusing on that kind of build-out on that CRM contact center with our capability and having that deep integration. We're also doing 2 additional areas in that space, and you'll see more on that over the coming weeks and months, in terms of additional capabilities in CRM and service areas, where we will drive that same deep integration. I think that will definitely drive a disproportional share. And I think that there's no question that that's the right space. And again, very good product in the right space. Any follow-up, Eric, there?

No.

Oh, the pull-through, right?

Sure. Can you provide any additional insights on that aspect?

Absolutely. There’s no doubt about it. If we focus on contact centers that are associated with Salesforce, service applications, or other CRMs, and limit our efforts to just a few, we can excel at this and ensure strong integration. These are typically mid-sized contact centers that align well with this approach. The benefit we’re seeing is an increased demand for unified communication. Rodolpho has shared several impressive examples with me. The integration between the contact center and unified communication really sets us apart because of our targeted strategy; we aim to concentrate on specific sectors without spreading ourselves too thin. By focusing on a niche, such as Salesforce in the service sector, we can enhance our integration within those applications and with our unified communication solutions. We're definitely observing an increase in both pipeline and closures that rely on this integration, contributing to net expansion in those accounts and driving our success. That was a great question. Thanks, Eric.

Our next question is from Sterling Auty with JPMorgan.

This is Drew on for Sterling. Congrats, Rory, on your first call; and Dave, on your last. So in the past, you've mentioned the 20% exposure to industries like travel and hospitality on the API side of the business specifically. I was wondering if you could provide some more color on how those verticals are performing and how many customers are requesting concessions and what type of concessions you're offering them?

Sure. I'll just give you a quick update, and then I'll pass it over to Omar. We saw that kind of impact appear to peak in the May time frame. And as he mentioned in his earlier remarks, you've seen Asia Pacific return to more pre-COVID activities in terms of that velocity. There's still pressure there. There's no question, particularly in the U.S. and travel and even in Europe. But we have seen them come off of the lows, and they've definitely been improving. Why don't I pass it to Omar to give you a little bit of detail on that, Drew, and thank you for the welcome. Omar?

Thank you, Rory. I don't have much more to add. We are exposed to travel and hospitality, and globally, those sectors will likely struggle to return to pre-COVID levels. However, in the Asia Pacific region, we've seen activity and usage return to those levels, particularly in Mainland China, along with a resurgence in travel and hospitality. There's also significant traffic aimed at stimulating actions in retail, which we've observed. Overall, this trend in Asia Pacific appears quite positive. We are monitoring the situation closely, as I'm sure others are as well. Regarding your question about concessions due to COVID, we haven’t really encountered that. We haven't seen struggling customers coming to us for price reductions or anything similar. I expected that might happen early on, but there hasn't been much of that activity.

Our next question is from Will Power with Robert Baird.

I would like to follow up on the app services segment and gain a deeper understanding of the underlying trends. In this quarter, many of your peers seem to have benefited significantly in the contact center area due to digital transformation. I’m interested in how this segment is doing overall, beyond just Salesforce. Are you experiencing the same pipeline challenges and go-to-market issues that you face more broadly, or is this more tied to UCaaS? I’m looking to grasp the overall trends in the contact center space. Additionally, Rory, as you analyze this and engage with customers, what enhancements do you think are necessary to improve that product?

Yes. I think, from a perspective of contact center, that area had the strongest trajectory. I think the focus in terms of the product and the way we're targeting it at Salesforce and then in the service space and then additional maybe one more CRM, I think it's the right strategy. Keep it focused. Put the energy of the organization there, get the pull-through through the ISV ecosystem. We've already seen higher growth rates compared to the unified communication space in contact center. I expect that to continue. Contact center grew in the mid-teens. I suspect that we can continue to build on that by keeping that focus and expanding that base. I think that that's the right strategy in terms of the capability. I think there's more pressure on unified communications, in general, but I think that's more about how we've gone to market versus the product. I think the power, though, of the combination in contact center, when we win those contact centers around Salesforce or service activities, and then we combine it with unified communication, it's really a differentiated capability. Then you get that full integration across call, activities, routing, all of the data and information shared, I think it's a powerful offering, and I think we will build on that. The main purpose of the business optimization and alignment project is to put in additional operating discipline and drive execution excellence. I think we're on the right space and right focus on contact center. I think we can lift that growth rate. But what we have to do is continue to build on that focus and augment it with the unified communications. All right? Thanks, Will.

Our next question is from George Sutton with Craig-Hallum.

Welcome, Rory. Dave, I really hope I never have to call you when I dial 911. Rory, and this is also for Omar, several months ago, you changed the branding, and the logo change was intended to position Vonage more in a business environment. I'm interested in your thoughts on how that has progressed. Do you believe we are successfully transitioning the Vonage brand to a more business-centric focus?

Sure, I'll start. I'm very excited about our ongoing efforts to strengthen the team. Recently, we welcomed Joy Corso as our new Chief Marketing Officer. Joy has extensive experience in all facets of marketing and excels in delivering messaging and communications across our offerings. Her background in operations will be invaluable to us. Vonage is firmly established as a business software-as-a-service company, and we are well-positioned to leverage the ongoing shifts in communications and digital transformation. You will see us continue to enhance our messaging and focus, as it aligns with our identity. We're introducing various capabilities through our API services, platform, and specialized applications for unified communications and contact centers, all aimed at supporting businesses in their digital transformation journey. I’m thrilled to be part of this team, and you can expect us to maintain this focus on messaging and trust throughout our operational strategy and business planning over the next two and a half years. Thank you, George.

We have reached the end of our question-and-answer session. I would like to turn the conference back over to management for closing remarks.

Well, I wanted to say thank you to everyone joining the call. It's very exciting to be part of the Vonage team. And as we talked about through the earnings call, I think we have made real tangible progress over the past several years to position the company well for the future. I think we're at the beginning of an industry-wide communications revolution in this digital transformation space. And I think our products and capabilities are well positioned to take advantage of that. We're going to apply operating discipline and drive execution excellence across every part of our business to change and to fully realize our full potential of our business trajectory. So with that, I'll pass it to Hunter. Any final comments, Hunter?

No, Rory. Thank you for that closing. We look forward to seeing many of you at some virtual conferences over the coming months, and we will talk then. Bye-bye.

Thank you. This does conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.