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spk06: Hello, and welcome to the Audio Code's first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Roger Chuchen. Please go ahead, sir.
spk02: Thank you. Hosting the call today are Shabtai Atlasberg, President and Chief Executive Officer, and Naran Baruch, Vice President of Finance and Chief Financial Officer. Before we begin, I'd like to remind you that the information provided during this call may contain forward-looking statements relating to Audit Code's business outlook, future economic performance, product introductions, plans on objectives related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance, or other matters are forward-looking statements as the term is defined under U.S. Federal Securities Law. or looking statements are subject to various risks and uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties, and factors include, but are not limited to, the effect of global economic conditions in general and conditions in audio codes industry and target markets in particular, shifts in supply and demand, market acceptance of new products and demand for existing products, the impact of competitive products, and pricing on audio codes and its customers' products and markets. timely product and technology development, upgrades, and the ability to manage changes in market conditions as needed, possible need for additional financing, the ability to satisfy covenants in the company's loan agreements, possible disruptions from acquisitions, the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes business, possible adverse impact of the COVID-19 pandemic on our business and results of operations. and other factors detailed in AudioCodes filing with the U.S. Securities and Exchange Commission. AudioCodes assumes no obligation to update this information. In addition, during the call, AudioCodes will refer to non-GAAP net income and net income per share. AudioCodes has provided a full reconciliation of the non-GAAP net income and net income per share to its net income and net income per share according to GAAP in the press release that is posted on its website. Before I turn the call over to management, I would like to remind everyone that this call is being recorded and archive webcasts will be made available on the investor relations section of the company's website at the conclusion of the call. With all that said, I would like to turn the call over to Shabtai. Shabtai, please go ahead.
spk05: Thank you, Roger. Good morning and good afternoon, everybody. I would like to welcome all to our first CORE 2021 conference call. With me this morning is Niran Baruch, Chief Financial Officer and Vice President of Finance at 30 Codes. Niran will start off by presenting a financial overview of the Corps. I will then review the business highlights and summary for the Corps, and then discuss trends and developments in our business and industry. We will then turn it into the Q&A session. Niran?
spk07: Thank you, Shabtai, and hello, everyone. On today's call, we will be referring to both GAAP and non-GAAP financial results. The earnings press release that we issued earlier this morning contains a reconciliation of the supplemental non-GAAP financial information that I will be discussing on this call. Revenues for the first quarter were $58.8 million, an increase of 13.1 percent over the $52 million reported in the first quarter of last year. Services revenues for the first quarter were $21.8 million, up 23.3 percent over the year-ago period. Services revenues in the first quarter accounted for 37.1 percent of total revenues. The amount of deferred revenues as of March 31, 2021, was $71.6 million, up from $64.2 million as of March 31, 2020. Revenues by geographical region for the quarter were split as follows. North America, 39%, EMEA, 39%, Asia Pacific, 18%, and Central and Latin America, 4%. Our top 15 customers represented an aggregate of 61% of our revenues in the first quarter, of which 49% was attributed to our 11 largest distributors. GAAP results are as follows. Gross margin for the quarter was 68.4 percent compared to 65.9 percent in Q1 2020. Operating income for the first quarter was 10.1 million or 17.2 percent of revenues compared to 6.2 million or 11.8 percent of revenues in Q1 2020. Net income for the quarter was $10 million or $0.29 per diluted share, compared to $5.3 million or $0.17 per diluted share for Q1 2020. Non-GAAP results are as follows. Non-GAAP growth margin for the quarter was 68.7 percent, compared to 66.1 percent in Q1 2020. Non-GAAP operating income for the first quarter was 13.2 million or 22.5% of revenues compared to 7.9 million or 15.2% of revenues in Q1 2020, an increase of 66.9%. Non-GAAP net income for the first quarter was 12.7 million or 37 cents per diluted share compared to 7.8 million or 25 cents by diluted share in Q1 2020. At the end of March 2021, cash, cash equivalents, bank deposits, and marketable securities totaled 182.5 million. Net cash provided by operating activities was 13 million for the first quarter of 2021. Day sale outstanding as of March 31st, 2021 were 56 days. During the quarter, we acquired 350,000 of our ordinary shares for a total consideration of approximately 10.3 million. We reiterate our guidance for 2021 as follows. We expect revenues in the range of 240 million to 250 million and non-GAAP diluted net income per share of $1.45 to $1.65. I will now turn the call back over to Shabtai.
spk05: Thank you, Niran. We're very pleased to report strong first quarter 21 financial results ahead of our internal budget and continued progress in our business. Most important, we've been strong in the market. We've seen strong markets for our three main growth engines, namely Microsoft Business, contact centers, and conversational AI. In the Microsoft business, Teams and Skype for Business, business grew above 20%. However, most notably, U.S. market showing increased activity in view of the decline in pandemic. We saw better environment for new created accounts and businesses, fairly stronger book-to-bill trend, which portends strong growth ahead. Contact center, we've seen strong pickup in activity, conversational AI, growth of more than 100% year-over-year in total. Importantly, first-quarter industry dynamics further underlines the notion that collaboration and work from home remains center stage in 2021 and beyond, even post-pandemic, and present long-term growth prospects for us. Atoid's strong performance in our North America services operation and continued SBC business strength, the outlook for 2021 and onward is positive. Talking about growth in services, Audicodes Live continues on track with the initial plan and we'll talk more about it later on. Also, with the return to office trend picking SIM in several countries or devices, IP phones, desktop phones, video conference devices showed meaningful improvement from 2020, though magnitude of recovery could be capped going forward by the well-known ongoing cheap supply constraints and shortage. So touching on the key highlights of the first quarter, total revenue grew 13.1% year-over-year, improvement as compared to the 11.7% growth back in the first quarter 2020. Growth driven mainly by a secular growth opportunity within the unified communication as a service and contacts in the markets. Service revenues grew 23.3% year-over-year. Service revenues were driven by strength in professional and managed services offering. Most important, we made ongoing progress in pivoting to recurring revenues with strong traction experience with our audio codes live offering. In terms of first quarter 21 revenue, let me go by segment. Referring to the 13.1 overall company year by year revenue growth, it is important to note the growth in our key markets, UCAS and contact center was substantially higher. UCAS accounted for over 65% of revenue and grew above 15% year-over-year. Contact Center accounts for 12% of revenue and grew above 20% year-over-year. So combined, and that is the enterprise operations we have, we now see more than 80% of our revenues growing at the rate of 15% year-over-year, which is substantial growth above the overall company growth. Two more segments, VCIS I've mentioned grew over 100%, still less than 2% of revenue at this stage. Decline was seen in the service provider and technology, which finally make up the balance of revenues down in the quarter. Now, to reiterate our three-year financial model targets, Growth, which was 15% in enterprise revenues in the first quarter, provides strong support for a reiterated 2021 outlook as well with our long-term financial model. The model calls for 13% to 15% growth of revenues. We did 13.1%. Non-gap gross margin, we defined a range of 67% to 70%. We ended up doing 68.7. OPEX as percentage of revenue, we said we would cap it at 47%. It came to 46.3%. And then when we're talking about the non-gap operating margin, we set the range to be between 20 and 23. We ended up at 22.4. Now let's focus on two more key developments in the core. This is the focus on real-time cloud communication. and on transition to recurring revenue. A recurring theme in our operation for the past several years has been increased focus and rapid transition of our solutions and services to real-time cloud communications. We continue to invest in cloud services automation and in software as a service solution development, and we see further growth in this space. Much was achieved in 2020. In the first quarter of 21, have increased and accelerated investment in this area, driving the momentum in 2021 and beyond. On top of this, we have substantially moved our focus in sales towards recurring revenue model, and an increasing percentage of revenue now comes from recurring revenue sources versus the circular model of capex sales of our networking gear. To further highlight this focus on transition to recurring revenues, in March 2020, we announced Audiocode's live initiative, which offers Audiocode's voice expertise, product, and solution to enterprises via a very flexible subscription-based managed services model. We have made good progress through the second half of 2020 and into the first quarter of 21, and now see the momentum growing and expanding. By mid-2021, we expect this line to cross the 10 million ARR mark and reach 15 million ARR by the end of the year, more than doubling 2020 levels. Our booking or total contract value of this business is already several tens of millions of dollars, and it is signed with a large number of enterprises who have already started or are about to start their UCAS deployments with us. This fast-growing business is a tangible proof to our superior technology in the areas of connectivity, management, automation tools, services, and adjacent applications to the UC solutions. I'm confident that this business will keep growing and represent a very significant portion of Autocode's value in coming years as recurring revenue basis. Now to Microsoft operations in the quarter. First quarter 21 business grew over 20% year over year. Microsoft business is now 45% of overall business. We target 120 million by the end of the year, growing about 20% on top of 2020. We've seen accelerating opportunities in the market, some of which focus more in the mid-market. We've seen a lot of activity around direct routing as a service, and we've seen dozens of opportunities in booking and in pipeline. We also enjoy a lot of success in our business development efforts in the field. We've seen increased success in the field, identifying new large enterprise opportunities. By now, we're getting several qualified deals every week. The average size is a few thousand. Similar success now is picking up in certain countries of Europe. where we see cooperation with the local teams of Microsoft. Now to the mix of revenues in the Microsoft space. In terms of the mix of revenues, Microsoft teams witnessed growth of 170% year-over-year, while Skype for Business declined moderately, less than 10% sequentially, and about 50% year-over-year. All along, All in all, we see much success and growth in the Microsoft business. We're talking usually about revenues, but I think it's more important to talk about what's evolving, about what I would call a book-to-bill ratio. So we've seen an acceleration of overall Teams business opportunities in the U.S. in the first quarter, having increased over 100% on a year-by-year basis and over 30% relative to the prior quarter. This metric is a good leading indicator pointing to ongoing momentum in our Microsoft business. So all in all, substantial new Teams opportunity developing for us going forward. As to the mix of accounts, where do they come from? So we are around about 100 give or take opportunities per core coming from our old Skype for Business install base. but growing number on Teams. So all in all, comparing first quarter 21 to the first quarter 2020, we have seen an increase of more than 50% year over year in terms of number of accounts moving to Teams. To highlight some top wins in the first quarter in the Microsoft space, talking about a large private company from the food industry This is a long-term Audicode customer that started with us with Skype for Business. We have a gradual journey from Skype for Business to Teams. We had a huge PO for Dex phones, replacing competitor phones. Also, we are providing their direct route as a service through the live essential service. Another big account in the US, a company well known in the financial space. They are basically on track with a team migration project from Sky for Business. We've done large professional services project for augmenting in-house capabilities. Talking about a project in Asia Pacific, we're talking about a bank in APAC. We have provided a mixture of product and services, including gateways, session border controls, management, central management, routing capability, management capability for subscribers, and professional services. Fairly competitive win against a competitor from the space. And in that specific deal, we've been partnering with a large service provider. So how do we grow from here? We have a clear plan. We're going to grow the number of Audicodes Live users. We're going to scale up in revenue to Audicodes Live professional and premium services. We're going to introduce new business application services and upselling. So that would include recording services, contact center services, analytics, meeting space services, and conversational AI services. Now going to the second large market, contact center. That is a very fast growing market. Revenue is now about 15% of our business. We target growth of about 15% year over year. This market is going through several disruptions. Firstly, the transition to cloud. Also, work from home evolves as a main trend. So WebRTC becomes mainstream to maintain quality of service when communication goes over the internet lines. And then we are engaged in investing in the new emerging intelligent contact center. And there we have a greater role to our conversational AI. All in all, this breadth of different technologies allows us to expand our business. In the past, we've been much more focused on working very closely just with Genesys. These days, we're expanding our work to work with more contact center vendors and also working with end users. So the focus on contact center end users In contrast to the past, contact center vendor focus helps us a lot in expanding the business. All in all, the conversational AI gets a big boost for automated and bingo sales service customer engagement. So all in all, a very successful core contact center. As I've mentioned before, we've grown in revenues of more than 20% over the year ago core. As I've mentioned, we have expanded beyond the Genesys environment, so we're now selling it to some other large contact center vendors in a meaningful way. EMEA was very strong, this core, and we do see the same developing in the second core, the current core. We also engage much in new voice AI technology that we call voice AI technology. connect, that helps to connect with voice to chatbots, and that activity is becoming fully successful. Let me touch for a second on our SBC operation, which is our most important product. Last year, sales reached short of $100 million. We plan to grow this year another 20%. Corner was very successful. We grew 30% above the year-ago core. We've seen very strong booking growth, more than 40% year-over-year. We all in all see a lot of activity in the space, various different projects, different technologies. For us, this space represents a lot of opportunity. Microsoft revenues in this space continue to grow 70% year-over-year. In terms of geo-split, the majority of revenues came from Europe, about 40%, about 25% and above from North America, 13% from APAC, and the rest from Kala and East Europe. Now let me get to the smallest growth engine, but still very important and very exciting. Talking about conversational AI, our next-gen growth engine. Conversational AI business includes the following lines. It includes recording services. That's smart for teams and meeting insights. It includes also the voice AI connect to connect voice to chatbots. And then we have the VOCA for conversational IVR. We've seen strong business. As I've mentioned, revenue grew more than 100% year over year. Our edge in this area stems from the fact that technology relies a combination of homegrown cognitive services technologies such as speech-to-text, text-to-speech, machine learning, NLU, NLP, and then cloud cognitive services and SBC networking telephony expertise, which some of our competition just in the cognitive service area lack some of these components. Long-term growth potential, that business plan ended up in 2020 at about 3.6 million. We now target to grow more than 50% this year, and we target to reach 10 million by the end of 2022. Growth is driven by trends in the UCAS and contact center and meeting industry, and the trend for self-service customer call automation in the contact center market. Smart App, which is our solution, for compliance recording. Enjoyed a lot of success. We just got certification for Teams about three months ago. We are one of the few who got that certification. We've seen pipeline growing significantly driven by the increased compliance recording needs from using a number of Teams users in the enterprise space. So very successful operation there. I'll mention also Voice AI Connect. Our industry-leading voice enabling chatbot technology plays a vital role in enabling contact centers to support increasing call volume arising from the ongoing cyclical shift to digital engagements. We are preparing for production with several customers and are on track to achieve 1 million ARR by the end of 2021. We will continue to provide updates on this exciting emerging business going forward. So all in all, a very successful operation. With that, I've concluded my presentation. I'd like to move the call to the Q&A session. Operator, please go ahead.
spk06: Thank you. We'll now be conducting a question and answer session. If you'd like to be placed into question queue, 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, may be necessary to pick up your handset before pressing star one. One moment, please, while we poll for questions. Our first question today is coming from Samad Samad from Jeffries. Your line is now live.
spk01: Hi, good morning, and congrats on the strong results. It's good to see you kick the year off with strong numbers. So, Sheptai, maybe first, you know, the team's growth continues to be very exciting, and I know you dug into it about the quarter somewhat in your prepared remarks, but You know, when you think about the go-to-market motion, are you guys hiring more sales reps to sell into that Microsoft install base to drive voice into Teams? Or maybe what's AudioCodes doing as an organization to address that opportunity from a go-to-market perspective?
spk05: Thank you, Samad. I'm really glad you brought that up. I didn't mention, you know, ad count. Ad count really changed dramatically. We grew 6% over the last year, so we added another 45 employees to the 745 employees we had then. Majority of these positions are with our sales and services organization. And as you can expect, because we see a lot of growth in the U.S., most of it is really occurring in the U.S. So, yes, I can tell you just in the past two weeks we have approve between 10 and 15 new positions for the sales and services organization. There's a lot of activity, and we're going to support that with that.
spk01: Great. And then maybe on the pipeline, again, your confidence in the environment definitely rang through on the prepared remarks. But when you think about how you measure it in terms of either client inbound requests or signups for demos, anything that maybe kind of tangibly that audio codes measures that points to what the pipeline looks like or how healthy the pipeline for teams related deals is?
spk05: Yes, we are. We definitely track that internally. We have analytics. Each of these deals, as we're moving more and more into recurring revenues, we're measuring the pipeline, we're measuring the total contract value that is accumulated. We measure, obviously, the execution, how much was deployed, how much... You need also to, by the way, to simulate that. Every organization that starts to move into... ID codes live in our managed services is really deploying only a very small portion of its operation initially. So it will be very natural for an organization to start with just a few hundreds, right? The proof of concept may start with 100 or 200, but at the end of the day, this organization is about 3,000 or above. So what we basically tell you is that, and I've really, in terms of total contract value, we have not counted the thousands. We have counted only the hundreds. So there's a lot of accumulated potential there, and as we continue to deliver well on our promises, we basically see growth of, you know, I've mentioned tens of millions of Total contract value, that is what's developing within the scope of a year now. So a lot of activity.
spk01: And great. Maybe just one last one for me, for either of you. But the profitability continued to be nicely above our expectations. And so I saw that Audiocos repurchased $10 million worth of shares in the quarter. maybe how should we think about the rest of what's left in terms of that $30 million buyback and if there's any appetite to maybe expand the buyback level given the current valuation?
spk05: Right. So right now, I mean, by, you know, we are in a position where we need to relaunch a new purchasing effort every six months. So the current one, basically add like $25 million in total, out of which we already executed on $10 million. So we're left with about $14 million for the rest of the six months that will end somewhere in July. Again, based on the situation there, based on what makes sense for us, I think that we see a lot of value in this buyback because we definitely want to invest where we believe the investment makes sense. And right now, you know, that is what's happening.
spk01: Great. I'll turn it over, but congrats again on the quarter, and thanks for taking my questions. Sure. Thank you, Sumit.
spk06: Thank you. Our next question today is coming from Remo Lenshao from Barclays. Your line is now live.
spk08: Hey, thanks for taking the question and congrats from me as well. Can you talk a little bit about the strength in the call center market? Like how much of that do you think is that you see there is kind of more like pandemic kind of one of emergency versus really strategic changes to what's going on in the industry?
spk05: I think pandemic really put, you know, a lot of weight on us. the issue of moving the agents from the facilities into working from home. There was no other choice. But during that process, I think many of the vendor at the end users actually found out that the cost of using agents at home is substantially lower than the cost of maintaining that operation on-prem, on facilities. So there's a natural saving when that force is sitting at arm. So obviously, that is a driver that is going to stay. Beyond that, the evolution of the cognitive services technology and industry, I think, help moving from human agents operation. This was 100% two years ago. 80% now, and according to research, people believe that in three years from today, only about 30% of the agents will remain human. So it's really the evolution of the technology, completely orthogonal to the pandemic, that is driving that shift. Beyond that, there's the shift from the premises to cloud, which makes sense usually for smaller companies, but then provide a lot of efficiency for the vendors. So not all of it. I think it's mainly, you know, the work from home. It's the web RTC, you know, quality monitoring end-to-end over the Internet. Those are technologies that evolve, you know, due to the pandemic, but are going to stay with us.
spk08: Okay. Okay, perfect. And then if you think about your ongoing migration process like towards more software, away from hardware. Can you talk a little bit about, like, any more active steps you need to do as an organization to kind of achieve that, or do you think it's just a natural evolution?
spk05: It's an evolution. I mean, we've started that journey like three years ago. We've done great steps. We are improving core to core, and I believe that in, you know... Today there's no single application that's developing internally that does not rely on cloud communications, real-time cloud communications. So everything that needs to take into account, you know, DevOps, you know, software as a service, automation tools, et cetera, analytics, all of that is being developed, you know, as we go into 2021. So I assume that in less than two years we'll be fully cloud-based.
spk08: Okay, perfect. Thank you.
spk06: Sure. Thank you. As a reminder, that's star one to be placed in the question queue. Our next question is coming from Greg Burns from Sidonian Company. Your line is now live.
spk04: Morning. You gave the relative growth rates between Teams and Skype for Business, but can you just give us the mix of revenue? How much revenue from Microsoft is still Skype for Business?
spk05: Yeah, I can tell you from the top of my head, so all in all, I think revenues topped 25 million or above. Out of that, Skyflip is accounted for, give or take, about eight, and the rest of it came from Teams.
spk04: Okay, great. Thanks. And then, you know, when you look at the Teams market in terms of, you know, voice penetration within the user base, Can you give us an update on where that stands, and have you seen any change in the trajectory or the pace of voice adoption within the Teams user base?
spk05: Yeah, I think we're seeing in 21 greater emphasis on voice. It may relate to competition coming from, you know, other companies making voice you know, voice more important this year. Also, you know, if you want to play on the top line of, you know, the vendors of UCAS, you really need to have all of the different components. And this drives some other companies to invest a lot in, you know, in voice. I would mention also, by the way, this did not come up during the discussion, that we have made some very nice steps in investing selling also into the Zoom environment. Zoom phone, which was less visible in our operation last year, started to pick up end of last year. First quarter was really strong above, you know, more than double the business we had in the fourth quarter. So I guess that, you know, greater emphasis by all of the other players. Take 8x8 and... RingCentral announcing, you know, services that combine their offering with Teams, I think all in all, the voice space is getting more important these days.
spk04: Okay, great. And then in terms of live, can you maybe, what is embedded in that, those AR targets, the 10 million by mid-year, 50 million by end of the year, in terms of maybe the number of seats or the relative size of the accounts and ARPUs.
spk05: Right. So basically, you know, we're talking about companies who, you know, our target is mainly, you know, thousands of seats, but the project does start with a type of hundreds. In terms of services, we do provide the first, the most basic services, direct route, SBC. On top of that, we provide management. On top of that, we provide documentation. other routing services, call recording services in the future, also some cognitive services. So it's a stack of technology. Actually, we start to push it as, you know, Teams Voice as a service. And when you're deploying voice, like Teams Voice, you really need, you know, a stack of technologies to provide overall processing. So it's a It's SBC, it's routing, it's management, it's devices, it's meetings, et cetera. And then that's what consists the, you know, Teams voice as a service or, you know, as we called it before, you know, the codes live.
spk04: Okay. When you look at that stack of the, you know, the underlying technology stack required to stand up like a seat and then also these, some of these incremental applications, you're talking about cross-selling or selling into that universe, you know, where, where do you think are, where do you think our people get to or where do you see it maybe starting? Okay. Okay.
spk05: Yeah, it's great question. You know, we can start the slowest, you know, a dollar, you know, when the service is the most basic one, but when you stack up all of the different capabilities, or when you need to connect to the local PBX or to provide more advanced services, the ARPU can go up to four, six, seven, et cetera. So, you know, you can make the average yourself, but this is the range where, you know, I would say one to seven is the range of where we should honor.
spk04: Okay, great. And then just lastly, how are you going to market with live? Do you have any, like, direct services or internal sales force selling that or are you going all through a channel?
spk05: So we're working with our channels. I mean, we have not changed anything in our go-to market. We actually include our partners in the game. You know, obviously we help them where they lack the knowledge and or the expertise, but the go-to market is indirect. Still, you know, for some very large customers who have, hundreds of thousands of employees. In some cases, we do have some direct touch, but the majority of the service is indirect.
spk04: Okay, thank you.
spk06: Sure. Thank you. Our next question today is coming from Ryan Kuntz from Niemann Company. Your line is now live.
spk03: Hi, thanks for the question, and thanks for all the color on the Microsoft ecosystem. Are you seeing any, within that era, are you seeing any shifts in the competitive landscape? Are you seeing new vendors get approved? And then second question, on the product side, are you seeing any, you know, shifts toward more of a SaaS model there, or is it still more, you know, kind of a licensed approach? Thank you. Sure.
spk05: So generally, you know, there are not too many newcomers, right? We've seen announcements from companies like 8x8, RingCentral, and Vonage, you know, offering services like that crowd. Nothing more than that. So all in all, in terms of providing a full technology stack for teams, I think we do not see much competition at this stage. I'm sorry, the second question related to going fast.
spk03: Changes in the product model? Are you seeing more of a license model?
spk05: Yeah, obviously, yeah. Let's ask. Right. Actually, we did deploy. Actually, I'm glad that you mentioned it because in the first quarter, we have deployed a new service that we call Live Essential on Azure. This is a completely SaaS solution. We're going to offer a management solution as a service, et cetera. The trend, again, is indeed to move substantially more from services and managed services into SaaS solutions. Yes. Thanks so much. Sure.
spk06: Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over to management for any further or closing comments.
spk05: Thank you, operator. I would like to thank everyone for attending our conference call today. With continued good business momentum and execution in the first quarter of 2021 and previous course, we believe we are on track to achieve another strong year of growth and expansion in 2021. We look forward to your participation in our next quarterly conference call. Thank you all. Have a nice day.
spk06: Thank you. That does conclude today's teleconference. Let me just connect your line at this time and have a wonderful day. We thank you for your participation today.
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