Asure Software Inc

Good afternoon and welcome to Assure's second quarter of 2024 earnings conference call. Joining us today on today's call are Chairman and CEO Pat Geppel, Chief Financial Officer John Pence, and Vice President of Investor Relations Patrick McKillop. Following the prepared remarks will be a question and answer session for the analysts and investors. I would now like to turn the call over to your host, Patrick McKillop, for introductory remarks. Please go ahead.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us for Assure's second quarter 2024 earnings results call. Following the close of the markets, we released our financial results. The earnings release is available on the SEC's website and our investor relations website at investor.assuresoftware.com, where you can also find the investor presentation. During our call today, we will reference non-GAAP financial measures, which we believe to be useful to investors and exclude the impact of certain items. The description and timing of these items, along with the reconciliation of non-GAAP measures to their most comparable GAAP measures, can be found in our earnings release. Today's call will also contain forward-looking statements that refer to future events, and as such, involve some risks. We use words such as expects, believes, and may to indicate forward-looking statements, and we encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ materially from our current expectations. I will hand the call over to Pat in a moment, but I just wanted to take a moment to remind folks of our upcoming investor relations activities. On September 12th, we will be hosting one-on-one meetings at the Barrington Fall Conference, which is being held virtually. Also, the team will have a member attending the Lake Street Conference in New York that same day. We are planning on some non-deal road shows for September and October. Also in November, we are hosting one-on-one meetings at the Needham SaaS Conference, which is being held virtually. We anticipate more conference participation during the fall months, based on last year's schedule, and look forward to connecting with all of you soon. Investor outreach is very important to Assure, and I would like to thank all of those that assist us in our efforts to connect with investors. Finally, I would like to remind everyone that this call is being recorded, and it will be made available for replay via a link available on the investor relations section of our website. With that, I would now like to turn the call over to Pat Geppel, Chairman and CEO.

Pat. Thank you, Patrick, and welcome everyone to Assure Software's second quarter 2024 earnings results call. I am joined on this call by our CFO, John Pence, and we will provide a business update for our second quarter 2024 results as well as our outlook for the rest of 2024. Following our remarks, we will be available to answer your questions. Our second quarter revenues were very solid, coming in at $28 million, and our reoccurring revenues were up 18% during the quarter, which is a nice improvement. Our revenues were driven by strong contributions from our Assure Marketplace Offering, Payroll Tax Management, and interest earned from funds held for clients, which we refer to as flow. During Q2, we are pleased to see our organic growth rates increase to 7% from 3.5% during Q1, and we believe that we will deliver double-digit growth in the back half of 2024. In 2023, you may recall we raised money to make acquisitions, improve our technology, grow over ERTC revenues, and deliver double-digit growth. We have executed this plan very well in the first half of 2024. We remain excited about the opportunities that I had for our business and are very pleased with the continued momentum of our payroll tax management business as evidenced by the recent deal we announced with Venture. Our deal with Venture, the largest privately held organization in the HR technology and service sector for our payroll tax management solution, will deliver comprehensive payroll tax management for PRISM HR clients and Venture's internal operation. This is a significant win for our payroll tax solution and coupled with the wins in the enterprise space with Venture's providers of Workday and SAP clients, we expect that over time as this business grows, it will contribute to growing our float balances as well. Our pipeline for this solution remains robust, and we look forward to potentially announcing more deals in the future. We have also recently formed a partnership with MyHRScreens, the premier provider of background screening services, This collaboration aims to expand access to a comprehensive background screening solutions for small and mid-sized businesses, facilitating a safer and more efficient hiring process. Additionally, in July, we acquired an applicant tracking system technology company, which enhances Assure's product suite for small and medium-sized businesses. This highly rated applicant tracking system features an automated simple all-in-one hiring tool which includes services such as job ad writing powered by ai automated interview scheduling and auto submission to major job posting sites the technology has good growth and creates a very good cross-sell opportunity for us plus it is complementary to our existing hr compliance solution Our portfolio of products and partnerships continues to grow in addition to others previously announced, like HR Logix for tax credit and proactive health management program for health management tools and services. These partnerships are great additions that really enable Assure to offer more solutions in addition to our payroll processing for small and medium-sized businesses. Our sales team. now have a broader product offering in their arsenal to help win new business as well as upsell existing clients. Strategic sales initiatives such as bundling our payroll services with our 401k offering allow us to continue to win new clients and they continue to see positive results. The need for small businesses to offer 401k plans is driven by many states mandating such plans as there's funding available to small businesses to set up these plans through tax credits from the Secure 2.0 Act from the US government. Assure has the expertise to help small businesses navigate this process successfully. Our sales efforts during the second quarter resulted in a 131% increase in new bookings versus the prior year. We continue to work on expanding our Salesforce income, which we are projecting to go to about 130 reps by year end 2024. Also, we continue to make use of digital marketing efforts to support the sales team with sales leads and help increase productivity. Based on our current business trends, we're updating our full year 2024 revenue guides to a range of $123 to $129 million, and we still expect adjusted EBITDA margins of between 20% and 21%. The forward guidance range of 2024 is the result of variability of timing of closing and implementing both large enterprise arrangement and anticipated acquisition. Our guidance in 2024 implies a very healthy double-digit growth rate if we exclude ERTC from 2023 revenues for comparison. Now, I'd like to hand it off to John to discuss our financial results in more detail, as well as our Quarter 3 guidance. John?

Thanks, Pat. As Patrick mentioned at the beginning of this call, several of the financial figures discussed today are given on a non-GAAP or adjusted basis. You will find a description of these GAAP to non-GAAP reconciliations in the earnings release that was made available earlier today. The reconciliations themselves are included in our most recent investor presentation posted in the investor relations section of our website at investor.assuresoftware.com. Now on to the second quarter results. Second quarter revenues were $28 million, down $2.4 million or 8% year over year, owing to a $6.5 million reduction in ERTC revenue. However, excluding ERTC, total revenues were up 18% from prior year. Recurring revenues for the second quarter grew 18% versus the prior year to $27.1 million. Recurring revenues accounted for 96% of our total revenues in the quarter. Second quarter recurring revenues grew on the strength of increased revenue from our payroll tax management solutions and increased float revenues with an average client balance of approximately $220 million throughout the quarter, combined with revenues from new customers obtained through acquisitions. Net loss for the second quarter was $4.4 million versus a net loss of $3.8 million during the prior year. Gross margins for the second quarter decreased to 67% from 72% in the prior year. Non-GAAP gross margins in the second quarter decreased to 73% from 77% in the prior year. The decrease in gross margins for the second quarter is primarily attributable to the decrease in total revenue. We continue to believe there is substantial margin upside over the longer term as business scales. EBITDA for the second quarter was $1.3 million, down from $3.3 million in the prior year. Adjusted EBITDA for the second quarter decreased to $4.1 million from $6.1 million in the prior year, consistent with the decrease in revenues. And our adjusted EBITDA margin was 15% in the quarter compared with 20% in the prior year. We ended the second quarter with cash and cash equivalents of $21 million, and we have debt of $6 million. Now, in terms of guidance for the third quarter of 2024, we are guiding third quarter revenues to be in the range of $30 million to $33 million. and adjusted EBITDA for the third quarter is anticipated to be between 6 million and 7 million. We are updating our 2024 guidance to be in the range of 123 million to 129 million with full year adjusted EBITDA margins of between 20% to 21%. As Pat mentioned in his comments earlier, the expanded guidance range figures for 2024 is the result of variability in the timing of closing recognition of revenue from, and implementing both large enterprise arrangements and anticipated acquisitions into our organization. Organic growth improved nicely from 3.5% in Q1 to 7% in Q2, and we expect to deliver double digits in the back half of this year. We feel good about how we have executed our acquisition strategy. With $15 million in annual recurring revenue being acquired so far over the last 10 months, And the average prices being paid have been consistent with our model coming in at between two and three times revenues. We continue to assume a combination of organic and inorganic growth in our current year guidance. The outlook for the core products we believe remains robust as evidenced by the strong increases in recurring revenue in the last two quarters. Our recurring revenue as a percentage of revenue This quarter was 96% versus 75% in last year's second quarter, which is very impressive improvement as we are replacing one-time ERTC revenue with high-value recurring revenue. In conclusion, we are optimistic about the remainder of 2024. We believe we have executed well against our plans as we move past ERTC. The ERTC headwinds will die down as we go through the back half of 2024 and enter 2025. Our focus remains on growing the business and delivering compelling solutions to our customers. With that, I will turn the call back to Pat for closing remarks.

Thanks, John. We're pleased to have delivered solid results in the second quarter of 2024. Our second quarter was very active with our recurring revenues growing 18% year over year, plus the combination of completing acquisitions and launching more products as we build Assure to be in a strong position for future success. Our focus on growing the business, improving our technology, and offering more products will be a continuous effort, and we feel that we have made excellent progress in the first half of 2024. Over the last few quarters, we've announced multiple partnerships to be able to offer more valuable services to our clients, in addition to our payroll services. Small and medium-sized business owners need assistance with more than just payroll. Our ability to offer products to help them uncover tax credits that they may be eligible for, proactive health management programs which can aid in lowering health care premiums, MyHR screens, for example, which can aid them in performing pre-employment background checks and an applicant tracking technology to aid them in their hiring practices are all very important tools that these business owners need to succeed. Our HR compliance offering is another example where we can help small business owners navigate all the complex laws regarding employment, such as minimum wage laws, which have grown exponentially over the years. Harassment training and family leave acts are also difficult for small business owners to manage the growth of a sure marketplace is expected to continue and our recent momentum with payroll tax management has also great potential as evidenced by our recent deal with venture the pipeline for payroll tax management is robust and we believe we will potentially announce more deals in the future in summary We're very pleased to have delivered another solid performance in Q2 against the backdrop of some unfavorable year-over-year comparisons due to ERTC. We believe we're executing extremely well on the plan we have laid out previously, which have included raising capital to make acquisitions, improve our technology, and grow double digits, and we've done exactly that. Over the last 10 months, we've made nine acquisitions, which bring in approximately $15 million in annual reoccurring revenue, improve their technology with the recent launch of best-in-class employee self-service, role-based identity access, and more. Our recurring revenues grew at double-digit rate of 18% in this quarter, and we believe that there will be more double digit growth in the future. Recurring revenue as percentage of our revenues has increased from 75% in last year's second quarter to 96% in this quarter, which is very impressive stat as we're replacing one time ERTC revenue with more valuable reoccurring revenue. Our backlog balances have more than doubled versus last year as we continue to bring on new clients, both large and small. We look forward to providing more detail on our 2025 outlook when we issue guidance during our next earnings release in November. The headwinds from ERTC are now starting to dissipate and we look forward to the remainder of 2024 and continue to deliver positive results. We will continue to provide innovative, human capital management solutions that help small businesses thrive, human capital management providers grow their base, and large enterprises streamline tax compliance. Thank you for listening to our prepared remarks. So with that, I'll send a call back to the operator for the question and answer session. Operator?

Thank you. At this time, we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Joshua Riley with Needham & Company. Please proceed with your question.

Yeah, thanks for taking my questions and nice job on the quarter here. So maybe just starting off, if we look at the wider range of guidance for 2024 revenue, can we just review your thoughts on what's different this quarter versus the prior quarter, whether it's changed assumptions around M&A, float income, or the macro? And what is this comment around timing of large enterprise deals? I assume that refers to some payroll tax opportunities.

Yeah, Josh, thanks for the question. First of all, John Pence, myself, and Eric Holstein, our president, are available for questions. But just on that, Josh, first of all, We feel really good about what we did the first half of the year. As we look at the second half, and primarily it's around the enterprise deals and tax, you know, we want a bunch. And some of them have phased installs. Some of them have, you know, start dates that, you know, could push a month or a quarter. So, you know, lining those up sometimes are difficult. And then we've had – Even the second quarter, we had a large successful deal that started a month later. So when we're looking at that, we just want to give ourselves enough flexibility. It's not a question of if, it's a question of when. And we feel really good about sales, really good about the backlog. We just want to make sure we stick the landing on some of these enterprise deals that are relatively new to us. And I'll give you some color. You know, we wanted a large manufacturing company, 30,000 employees, et cetera. And it was supposed to start in January. It's probably going to start here August 1st. That's one example. Another one, you know, we have a new partnership. with one of the enterprise ERP systems, and it's over 250,000 employees, and it's supposed to start the back half of the year. Could it slip to January? It's not a question of selling. It's a question of installing it. For those reasons, and then even acquisitions by nature sometimes, it's, you know, when you convert some of the revenue in some cases. So, again, it's not a question of if, it's a question of when. We want to make sure we give ourselves some flexibility. And I would say what's different than last quarter, not much, just that we continue to execute on the plan.

Got it. And if you look at that 15 million in ARR now that you've acquired, I guess that's in the last 12 months versus year to date. Is that consistent with what you would have expected entering the year? And does that, you know, is the amount of revenue you're actually going to recognize from those acquisitions in the current calendar year pretty consistent with what you expected entering the year? Thanks guys.

Yep. I think so. And just to be clear, that's 10 months. So it's kind of a, October of last year through July or through yesterday, so it gives you some sense as to the timing. And, yeah, it is pretty consistent with what we were expecting, and we've still got some more, I think, in the pipeline that we're hoping to close in the next few months. But, yeah, it's pretty consistent with what we were hoping for, if not a little bit more.

Got it. I'll get back in the queue. Thanks, guys. Thank you, guys.

Our next question comes from Brian Bergen with TD Cowen. Please proceed with your question.

Hi, thank you. This is Gareth on for Brian. I was just wondering if you could comment on the demand environment relative to prior quarters, maybe compare across your offerings or how the top of funnel activity is looking year over year. Thank you.

Yeah, no, I appreciate it. I think, you know, demand environment is very strong, both on the small business marketplace as well as some of the tax opportunities, et cetera. You know, I might get Ale into the conversation here. Ale, do you want to talk a little bit about the sales demand environment?

Sure. So, yeah, Gary, we're seeing consistent strong demand across the business. Small business, both in our direct and our reseller channel, continues to be really strong. In fact, we've seen an uptick in new payroll customers that we're bringing on. So that's really healthy. Our tax business that Pat's been mentioning and John's been mentioning is we're seeing much higher increased activity there. And so I would say that one has gone up significantly from a pipeline perspective. But overall, very strong. and across all the different businesses.

Great, thank you.

Our next question comes from Eric Martinuzzi with Lake Street Capital. Please proceed with your question.

Yeah, looking for a little more color on the applicant tracking company that you acquired in July. Just what did we pay for that? So kind of what would a pro forma cash balance be? for the month ending July, and then what could we expect revenue contribution there?

Yeah, I mean, I think we're going to talk about kind of acquisitions and aggregate. I believe there is some subsequent event disclosure in the queue on that one, just in terms of the size and the materiality of it. But in general, really, obviously don't want to talk about third quarter since we're just talking about second quarter right now. But I think you can get some color with respect to the purchase price on that one. And again, we want to try to talk about the acquisitions in aggregate just because we've got some that are, you know, Lots of different multiples, lots of different structures, but I'm trying to give some sense as a relative size of the overall portfolio of acquisitions.

And then just on the Apple contracting company, first of all, we were attracted to that business. It's a technology that we didn't have in-house. We feel it's an easy, you know, we go to market with three value propositions. basically access to capital compliance and access to people. We've been looking for the right company and the culture around that is really strong. We're not telegraphing the name of that quite yet, just as we're in the process of working through all the client notifications, et cetera. But feel really good about the business scalability of it. And then we also think there's a tremendous opportunity to cross sell because as we look at our small business owners and what they need is access to people, we allow for, you know, kind of personalized websites around the people, job board integration, et cetera. We think this will be, you know, an area of business that will double here in a very short order. And so we feel really good about that. Any other thoughts or follow-ups, Eric?

Yeah, separate topic here. You talked about the good pipeline here and some large enterprise arrangements that may slip a little bit to the right, but what about the install base, specifically the churn of your existing customers in Q2 versus prior quarters?

Yeah, all in, we're about 90% or 91% on retention. That's pretty consistent with where we've been. So, you know, feel good about that. As far as, you know, kind of the, you know, the customer base buying, we're – You know, somewhere around a 50-50 split. In some quarters, we've been as high as 70% new logos, 30% base sales. So, you know, obviously the cross-sell demand is pretty strong. And some of it's just we're coming out with more and more products. as technology, you know, we improve the technology and go to market with more products. So it's, you know, happy customers buy more and, you know, we feel like we're in a pretty good shape here as we enter into the second half.

Got it. Thank you.

Thanks, Eric. Our next question comes from Jeff Van Rie with Craig Hellam Capital Group. Please proceed with your question.

Great. Thanks, guys. So a couple from me, just on the acquisition front, first of all, applicant tracking, bringing in some incremental capabilities looks like a nice fit. In terms of the pipeline and what you look at acquiring the rest of the year, is it predominantly resellers or are you seeing other technologies, just kind of the mix of acquisitions to come?

Yeah, almost all will be resellers. You know, we have one more product capability at some point in time here. But if I were to look at the rest of the year, I think the resellers will probably be more dominant.

Okay. Okay. And then on the acquisitions, not to split hairs here, but the 10-month timeline, I mean, the way we built the model, at least for us, you call it seven months in. On a seven-month period, where are you on the 10 to 15? Are we talking like 12 million, or can you dial it in a little closer?

Yeah, go ahead. I think that's about right. I think there was three or so we did in the fourth quarter of last year, so I think that's fair. But again, trying to – it gets a little hard to parse this because if you think about we did give organic versus inorganic growth stats for second quarter. So I think it was seven organic, 11 inorganic. And then, again, in our guide for the third and fourth, we're pretty consistent in terms of our messaging here. I think it's going to be a similar type of – you know, complement of both organic and inorganic in the third and fourth quarter. So just trying to give directions. I mean, it's hard to kind of nail these things to the percentage, but I think directionally that's what you'll see for the balance of the year too.

Yeah, Jeff, maybe, and John and I were talking about it ahead of the call, but, you know, we did 18% or so, you know, third quarter, the low and the high imply a 23%. year-over-year improvement to a 35. Fourth quarter, if the guide implies, a 32% to 44% on the low and the high. And I would say we're right on pace on acquisitions. The turn from ERTC to organic growth, as expected, it might be a percent or two lower coming out of the gate. But but we feel really good about where we are. And then the backlog is more than doubled. So as we slot that in, you know, the organic growth will definitely be over double digits here. So, you know, our plan is going pretty close to expected.

Yeah, okay, helpful. And then two last quick ones, if I could sneak them in. John, the W-2 revenue, can you just remind me what that was in Q1? And then second, around the REVREC for the venture deal, just as an example, what would a deal like that, how would that play out from a REVREC standpoint? We're talking, you know, falls in one quarter, purely ratable over time. Just refresh me on how the deals like that, because they tend to be larger, obviously. How's that going to play in REVREC? Thanks.

Yeah, at a high level, it's a multi-year deal. There's some upfront cash component, but what'll happen is despite the upfront cash, we'll amortize some of that upfront cash payment over the life of the agreement. So it gets more blended in, even though the cash flows might not exactly match up. So we get some cash upfront that then ultimately amortizes in as we provide the service. To your question on W-2s, for the first quarter, it's about $5 million. Okay, great. Thank you.

Thanks, Jeff. Our next question comes from Vincent Coluccio with Barrington Research. Please proceed with your question.

Yeah, Pat, the bookings growth number you cited, was that adjusted for ERTC bookings in the year-ago period? It was.

The other thing I guess we ought to be clear to is back to that comment that Jeff just had. There is some kind of one-time money in that that, again, will get amortized into revenue, but we still have to pay commissions on the fact that the cash is coming in earlier. So anyway, so it's a number that has both recurring as well as some one-time revenue in it, but it does have ERTC out to answer your question, Dennis.

And then a macro question. So if you look at your client base, are they expanding at a healthy clip, a modest clip, or not at all?

You know, the client base, and I'll let Al answer a couple questions here. But on the client base in general, you know, I think the client headcount, if you will, is about flat. So we're not seeing appreciable growth. There's still more jobs and people, especially in the areas of, let's say, the trade organizations and restaurants and stuff like that. What we are seeing, though, is cross-sell opportunities, and some of it's our capability and some of it's the client buying patterns that they want to buy more. Al, anything else on your end?

Yeah, I would just say another big thing we're seeing, especially with the acquisition of the recruiting piece, is customers are looking for ways to find more employees. So there definitely are open positions they're looking to grow. It's not massive like what it was, but there is a need to find good candidates and a healthy amount of candidates across our customer base right now.

Thanks for all that, Culler. That's it for me. Thanks.

Thanks, Feds. Our next question is from Greg Gibbous with New Orleans Securities. Please proceed with your question.

Hey, thanks for taking the questions, guys. Good afternoon. Regarding the doubling of your backlog year over year, you know, great to see that. Wanted to kind of dive in a little deeper on kind of the drivers there. You know, would you say it's mostly just, you know, improving demand for products? Would you say there's kind of better go-to-market approach? And, you know, is there any impact just from longer implementation or time to deploy for, you know, some of your larger enterprise type clients?

Yeah, Craig, I think that's a thoughtful question. And I think, first of all, on tax, you know, we're winning more in the enterprise space, which is very positive. You know, some of these pursuits are longer-term deals, too. And so, you know, for example, something like 37% of the backlog is this, you know, is in the year kind of, if you will, revenue, and then you have multi-year deals as well. So some of it is... a little bit of a demand environment based on newer products that we're offering and being very aggressive. You know, we have integration opportunities that we previously announced with Workday and SAP. And, you know, we have another one here that we haven't announced yet that, you know, you'll recognize that name as well as an integration opportunity. So we're pretty excited about that. That's driving some of the backlogging in. Some of the, you know, things that we've talked about on other conference calls, 401K and the integration of payroll, that's happening right now. Some of it is because some of these products are relatively new. You know, book-to-bill is probably longer than I would like at this point in time. And, in fact, you know, we were on some calls today even that, you know, we're driving those book-to-bill numbers down the second half and next year. And some of it is just we're brand new in offering some of these services. So there's a little combination of book-to-bill elongating a bit in some of the new products, but the bulk of it is really tax filing and our presence in the enterprise marketplace that's driving it.

Great. That's helpful, Pat. And if I could just clarify, too, on your comments on kind of organic growth in the back half, you know, I guess what's implied in guidance. Did you kind of say that roughly equal contributions from organic versus growth in that position?

Yeah, that's what I was going to say. That's been kind of our consistent message. You know, it's hard to predict exactly. It's going to be 50-50, but it'll be, you know, a healthy combination of both.

And, Greg, what I would say just in general, all along, if you think about it, we had one time revenue last year kind of attributed to ERTC. When we built the plan, the big theme here was we're replacing non-repetitive revenue with repetitive revenue. The first quarter, we had about 3.5% organic growth. This quarter now it's 7%. But if you look at what we started, let's say, in May and June and even July, we had a really good, you know, payroll units were at a very strong July. So the organic engine is building momentum. I mentioned the low-end guidance of 23% in third quarter, fourth quarter between 32% and 44%. We kind of did, you know, implied guidance of half of it being organic, half of it being inorganic. We won't get it all perfect, but you could see it's an accelerating business story. And that's really, to me, the story that, you know, I want investors and yourself to take away from.

I think that's a good point, Pat. Thanks. Thanks for clarifying.

Thank you.

Our next question is from Robert Galvin with Stiefel. Please proceed with your question.

Hi, this is Rob on for Brad. Thanks for taking the question. I was wondering if the updated FY24 guide factors in any assumptions on rate cuts in the back half of the year for the float interest or if it assumes rates remain consistent to say. Thanks.

Yeah. We priced in, you know, we have our long-term portfolio managed by Goldman Sachs. And so we had a call with them, I guess it was last week ahead of our board meeting, and we did that quarterly. And we kind of took their advice. What they're predicting is kind of a quarter in September and a quarter in December. So we kind of ran that through our model, and that's kind of implicit in the guide. So it's not a huge impact to us, but we did factor in two cuts, one in September and one in December.

Great, thank you.

Thank you.

As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad. One moment while we poll for additional questions. There are no further questions. At this time, I'd like to turn the call back over to management for closing comments.

Yeah, and I won't speak too long here, but Pat Keppel here. Really feel good about the momentum of the business. You know, I think we were thinking about, you know, last year in the third, fourth quarter and, you know, how we've grown past year at TC and some questions around that. We've outlined a plan and we've executed to the plan. We feel really good about that. In some cases, you know, we're even ahead of a plan and ahead of the sales adoption. As we get to book the bill, you know, the increasing level of growth, we start to last compares. We think that will pop out. You know, we have 2025 guidance coming up. We'll do that as usual in the November call. But, you know, we're a company on the move. We appreciate your interest and appreciate you taking time today.

This concludes today's conference. You may disconnect your lines at this time. And we thank you for your participation.