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spk00: Thank you for standing by, and welcome to Bridgeline Digital's first quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. To remove yourself from the queue, please press star 1-1 again. I would now like to hand the call over to CFO Tom Windhausen. Please, go ahead.
spk02: Thank you, and good afternoon, everyone. Thank you for joining us today. My name is Tom Windhausen, and I'm the Chief Financial Officer of Bridgeline Digital. I'm pleased to welcome you to our fiscal 2024 first quarter conference call. On the call with us this afternoon is Ari Kahn, Bridgeline's President and CEO, who will begin the call with a discussion of our business highlights. I will then update you on our financial results for the quarter, and we will conclude by taking questions. Before we begin, I'd like to remind listeners that during this conference call, comments that we make regarding Bridgeline that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The internal projections and beliefs upon which we base our expectations today may change over time. and we expressly disclaim and assume no obligation to inform you if they do. The results that we report today should not be considered as an indication of future performance. Changes in economic, business, competitive, technological, regulatory, and other factors could cause Bridgeline's actual results to differ materially from those expressed or implied by the projections or forward-looking statements made today. For more detailed information about these factors and other risks that may have an impact on our business, please review the reports and documents filed from time to time by BridgeLine Digital with the Security and Exchange Commission. Also, please note that on the call this afternoon, we will discuss some non-GAAP financial measures when commenting on the company's financial performance. We provide a reconciliation of our GAAP financials to these non-GAAP measures in our earnings release. You can obtain a copy of our earnings release by visiting our website. I would now like to turn the call over to Ari Kahn, BridgeLine's President and CEO. Ari? Thank you, Tom.
spk04: Good afternoon, everyone. Our first quarter of fiscal 2024 had the strongest subscription sales since I joined Bridgeline. We signed over $2.5 million in new customer contracts with 28 license sales, adding $750,000 in ARR, annual recurring revenue. Sales were driven by Hawk Search with the release of Smart Search and Rapid UI, creating demand that will continue to drive new sales in the future. Search is now well over 50% of subscription revenue for the company, and that percentage is expected to increase. Subscription revenue overall is 82% of our total revenue. Professional services revenue was down this quarter to $670,000, in part because we invested in making our products out of the box with the Rapid UI release last quarter that allows new customers to install Hawk Search with no implementation cost. This is a competitive advantage that shortens our sales cycle and increases our total addressable market. Rapid UI expands the total addressable market to include companies who seek to invest more of their budget into the subscription and to go to market more quickly than a custom implementation would allow. These customers can use the saved budget to purchase additional subscriptions from Bridgeline, such as our Smart Search product, or invest in custom enhancements in the future after they launch and go live. Smart Search is the most important product release we have ever made. It delivers a clear value proposition to our customers and increases their online revenue by allowing their customers to find products to buy that they may not have realized that they need or would not have found with traditional keyword-based search. 100% of BridgeLine's over 500 search customers can increase their online revenue with SmartSearch. Customers can add SmartSearch to their existing HawkSearch license for an additional subscription fee, which gives BridgeLine an opportunity to significantly grow our HawkSearch revenue from our current customer base above and beyond the fact that SmartSearch helps us win more new customers. Because along with RapidUI, it allows a new customer to make an immediate improvement to their own revenue. Smart Search is an AI-based enhancement to Hawk Search that allows the shopper to find products with more intelligent natural search. First, while shopping, you can take a photograph with your smartphone and find products on a Smart Search-powered website. Secondly, on a Smart Search-powered website, you can describe your goal to create to create a shopping list rather than have to specify the individual items that you want to buy. And thirdly, you can do all of this in more than 50 languages. Here's an example. Let's say that you have a camper planning a trip. That camper can simply ask the website, what should I bring on a two-week camping trip for cooking? Smart search response will include all the expected products such as a cooking stove and protein tank, and will also include products such as a meal-ready-to-eat food pouch that the camper may not have thought about in the first place. The camper may then see a person on the street with cool hiking boots that they like, and they can quickly snap a picture with their camera, and the SmartSearch-powered website can take that picture and immediately find those boots and allow that person to buy those search from the website. These experiences are not possible without Smart Search. Smart Search leverages the latest advancements in AI, including large language models, transformers, and vector databases to deeply understand your online catalog, including what products look like, how products can be used, and how products are related to each other. The future of online shopping is for websites to become intelligent sales advisors who can understand your needs and recommend solutions. SmartSearch empowers your site to see and converse with customers today to help them find products that they may not have even realized they needed. From a competitive point of view, SmartSearch offers natural and intelligent capabilities that do not exist elsewhere in the market. And along with rapid UI, it offers these abilities without the need to invest thousands of dollars and weeks of time in site redesigns or data integrations. Because SmartSearch is out of the box for existing HawkSearch customers, they can upgrade without a complicated technical investment or the politics that accompany changes to their customer experience and branding. HawkSearch sales are largely driven through our platform partnerships with BigCommerce, Salesforce, and Optimizely. We also have agency partners including XEngage and AmericanEagle.com that help drive HawkSearch sales. Sales in the first quarter include Shadler Yasco, an electrical distributor with 29 locations and 1,000 brands. Yasco chose HawkSearch for its unique part number search functionality that allows shoppers to make full and partial part number searches while automatically performing unit of measurement conversions. SmartSearch will go further for Yasgo and allow an electrician to take a picture of a part while on the job and immediately find that part in their catalog. Another electrical distributor selected SmartSearch to enhance their e-commerce bring over 700 to allow contractors to search for products with images or describe more complex needs to the site to find electrical components. The total contract value for this enhancement is more than $875,000. A leading national insurance provider selected HawkSearch for its custom research portal and smartphone app. The insurance company used rapid UI to immediately solve their clients' needs to find facts, policy information, and documents from the resource library. Savion, a leader in cloud identity and access governance, collected SmartSearch to help its customer support team to find information across several third-party knowledge bases. And this is an example of what is called federated search, where Hawk Search indexes information from multiple repositories. A retailer specializing in agriculture and farming products chose HawkSearch and SmartSearch to boost sales across their 25,000 product catalog. SmartSearch will analyze their brochures and images to allow shoppers to find products using photographs or natural language. The customer tested SmartSearch with hundreds of images taken in the field from a smartphone to ensure that their customers could find parts in the real-world scenario. A leading building materials retailer selected HawkSearch to enhance their e-commerce site, improving product discovery in their catalog of over 5,000 products. Rainbow Resource Center, a top educational retailer, selected HawkSearch to power their e-commerce site. HawkSearch's capability for keyword-triggered promotional campaigns will allow the retailer to highlight special offers and featured products. Nailgun Depot. A leading home improvement retailer chose Hawk Search to auto-complete and granular relevancy tuning that will grow its revenue significantly and streamline product discovery process for their large complex product catalog. Overall, our marketing and lead generation is focused on narrow industries, such as building supplies, where we can become the industry leader to make future sales even more efficient. We're also efficiently selling to our existing customers with products like SmartSearch to further drive revenue without incurring large marketing expenses. Although cumulative subscription revenue is flat due to legacy product burn, HawkSearch has outstanding customer retention, is winning new customers rapidly, and upsell opportunities within our customer base. And it continues to have double-digit growth. Our partnership with Optimizely and Xengage is an important part of our go-to-market strategy. In October, we joined Optimizely at their annual user conference where we announced HawkSearch's integration with Optimizely-configured commerce using the Xengage connector. This announcement was followed with online webinars to further promote sales. HawkSearch is now in a unique position to improve site search for more than 1,000 Optimizely-configured customers and several have already purchased the license. We recently announced a reseller partnership with AccessiBe, the market leader in web accessibility. AccessiBe helps over 180,000 companies, including PlayStation, Johnson & Johnson, and NBC, to improve compliance with the American Disability Act and similar legislation in Canada and Europe. Bridgeline will sell AccessiBe to our 600-plus customers, many of whom have an active interest in accessibility. which not only increases their online sales, but also reduces litigation risk with compliance legislation. HawkSearch has the only big commerce connector for search that supports multi-storefront. This is a big differentiator for our big commerce partnership. Multi-storefront gives HawkSearch an advantage in the franchise and chain store market. and recently led to a furniture store in Europe to select HawkSearch. The store will use HawkSearch's rapid UI to quickly go to market across multiple countries in Europe in multiple languages with a unique user experience where users can see different furniture colors in the auto-complete dropdown from HawkSearch's search bar. Bridgeline will showcase the latest versions of this connector in May with BigCommerce at the B2B Online Chicago Conference Going forward, we expect HawkSearch to drive much of the growth for Bridgeline with investments in AI to lead to new sales and upgrades in our existing customer base. SmartSearch has been especially strong with seven sales in just the last two months in a pipeline of more than 700,000 annual recurring revenue. Our go-to-market strategy relies on partnerships and targeting of narrow markets to maximize sales per marketing dollar. So at this time, I'd like to hand it off to our Chief Financial Officer, Tom Woodhausen. Tom?
spk02: Thanks, Ari. I'll provide an update on our financial results for the first quarter of fiscal 2024, which ended December 31, 2023. Total revenue for the quarter ended December 31, 2023 with $3.8 million, compared to $4.1 million in the prior year period. Subscription and license revenue, which is comprised of SAS licenses, maintenance and hosting revenue, For the quarter ended December 31, 2023, it was $3.1 million compared to $3.2 million in the prior year period. As a percentage of total revenue, subscription and license revenue was 82% of total revenue for the quarter. Services revenue was $669,000 for the quarter ended December 31, 2023, a decrease from $854,000 in the prior year first quarter. As a percentage of total revenue, services revenue accounted for 18% of total revenue in the quarter. Cost of revenue was $1.2 million for this quarter, a slight decrease from $1.3 million in the prior year period. And as a result, our gross profit was $2.6 million for the quarter, as compared to $2.8 million in the prior year period. Overall, gross profit margin was 68% for the quarter ended December 31, 2023, compared to 69% in the prior year comparable period. Subscription and license gross margins were at 73% for the quarter, consistent with the prior year period. And services gross margins were 44% compared to 51% in the prior year period. Operating expenses were $3.2 million for the quarter ended December 31, 2023, consistent with $3.2 million in the prior year period. Moving below operating expenses, the change in fair value of our liability classified warrants in the quarter resulted in non-cash income of $18,000 compared to income of $300,000 in the prior year period. Net loss was $0.6 million or $600,000 for the quarter ended December 31st, 2023, compared to a net loss of $100,000.1 million in the prior year period. And finally, adjusted EBITDA for the quarter was negative $117,000 compared to a positive $115,000 in the prior year period. Moving on to the balance sheet, on December 31st, 2023, we had cash of $1.4 million and accounts receivable of nearly $1.3 million. Our total debt outstanding as of December 31st, 2023 is approximately 585,000 euros or 646,000 US dollars. That debt has a weighted average interest rate of 4.68% with principal payments due through 2028. We have no other debt or remaining earnouts from any business or previous acquisition. And December 31st, our total assets were 16.6 million and our total liabilities were 5.7 million. We did have a decrease in cash in the quarter, and that was the result of timing of collections of receivables, as well as timing of vendor payments. Specifically, the quarter included over 200,000 of payments to a certain partner vendor, which will not recur. Finally, I'll give an update on our cap table. As of the end of the period, December 31st, 2023, our cap table included 10.4 million outstanding shares, 39,000 shares from Series C preferred stock on an as-converted basis, 1.7 million in warrants, and 1.8 million options. In October 2023, during the quarter, 54,000 warrants expired. Another nearly 900,000 warrants whose exercise price is $4 will expire in approximately seven months in September 2024. After that, we'll have 800,000 warrants outstanding, primarily including 180,000 warrants with a $2.85 exercise price expiring in May 2026. and just under 600,000 warrants with a $2.51 exercise price, which expired in November of 2026. We look forward to continuing the growth and success in fiscal 2024 and beyond as we gain our focus on revenue growth, product innovation, customer success, and delivering shareholder value. Thank you all for joining us on the call today. At this time, I'd like to open the call for questions and answers. Moderator?
spk00: As a reminder, to ask a question, you will need to press star one one on your telephone. Again, that's star one one. To remove yourself from the queue, you may press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Howard Halpern of Taglik Brothers. Your question, please, Howard.
spk01: Good afternoon, guys. Anthony and Howard? With all the recent innovation that you have announced, what are we looking at now in terms of sales cycle and potential deal size and how that might translate into future growth? Great, great.
spk04: So this has been a big focus of ours. We've made a lot of investments. specifically making our software easier to buy by allowing our customers to have immediate value towards their own businesses. And the two big releases that happened last quarter to this end include Rapid UI and Smart Search. What Rapid UI does is it allows our customers to launch their site immediately without having to purchase any software professional services for custom implementation. This allows us to take all of the expressive power in HawkSearch that powers massive sites like hp.com and make that available for small, medium businesses that can't invest a huge amount of money in a custom implementation. It increases our total addressable market. It also changes the structure of initial deals so that our initial deals now are primarily licensed, and many of them have zero services whatsoever. This allows us to increase our license fee because now the budget can be allocated that way for recurring high-margin revenue. It allows us to win customers we couldn't win otherwise because they either don't have the time or they don't have the money to – to do a custom implementation. And it decreases our sales cycle by allowing us to avoid having to spec out a custom implementation, which takes a lot of time, and also allowing us to just immediately take the customer's website and give them a customized demo with their own product catalog rather than a generic demo with a round catalog. So that's huge. Now, in addition to that, so there's Rapid UI. Increase our TAM, our total addressable market. Decrease our sales cycle. Shift revenues from services to subscriptions. What SmartSearch does is, and this is my background, artificial intelligence, so I'm really passionate and excited about this, is it leverages huge advancements that have happened in the last 18 months around what are called large language models and artificial intelligence. And a lot of us have seen the news around ChatGPT and other companies that are enabling natural language agents to automatically converse and find information for you. Well, those fundamental libraries cost billions of dollars to create. And what companies like OpenAI did a very good job at was to create interfaces so that people that don't have billions of dollars can leverage those products as infrastructure. Because we understand artificial intelligence very well, not just myself, but many of the engineers in our team, we're able to look at those capabilities that are now available Look very carefully at our customers and our prospective customers from a use case scenario and connect the dots to put that together into a set of capabilities that are very different from what you can get from other companies and that directly deliver value to our customers. Here's how we can deliver value. Okay. So the value for our customer is increasing their online revenue. And one of the challenges that they have is that their customers don't even know what they want to buy sometimes. They know what they want to do, but they don't necessarily know what they want to buy, or they don't know that the online store has the products that they need. I need to fix this tractor, and I know that I need to replace a certain gear. What I don't know is that I also need to replace certain washers and other things. While I'm underneath the tractor, I can take a picture of the gearbox, have SmartSearch automatically figure out what parts in the tractor supply catalog are necessary for performing that task, and tell me which ones I can purchase. I might not have realized I needed that washer or other component, but now I do, and instead of running down to the local tractor supply store and buying it from TSC I'm actually buying it online from the customer that owns SmartSearch these capabilities allow our customers to avoid revenue leakage in a huge way avoid their customers forgetting to buy something and making do without it or buying something from someone else because they don't realize that they have it clear revenue impact now one of the great things that we've done is that we've made SmartSearch completely backwards compatible with our standard Hawk Search keyword capability. And this is super important because that means every single one of our Hawk Search customers can push a button and turn on Smart Search. So our sales cycle into our existing customers to upgrade Smart Search is super short. Every single one of them can derive value from this. So we've got a great market right there that can increase our smart search revenue by over 30% all by itself in addition to us being more competitive to other search products in the market. So these two features by themselves we think are really important. You can see an impact in our financial statement. We do have a lot less services revenue this quarter than we traditionally have shown. And our subscription revenue bookings don't hit the P&L on day one. So we're excited that we're going to start seeing a greater revenue mix of subscription versus total revenue and faster sales cycles thanks to these two products, and we've got more on the pike.
spk01: Okay. And talking about... sales growth. Are we going to start to see now sequential sales growth as a legacy customer? Have they completely wound down in sequential sales growth?
spk04: It took a year for them to wind down, which was good because we were able to get additional revenue along the way. December was their last month, which had a the final decrease of specifically $25,000 in MRR. And we've got substantial new sales and continuing momentum that gets to fill that hole. And we expect to start seeing growth.
spk01: Okay. And one other question with regard to search. Now, that is an independent product. So if you were to, you know, sell it to a new customer, is that then a potential down the road to backfill and then sell them your HawkSearch product?
spk04: Yes. So our customers, our new customers, can start with SmartSearch or HawkSearch or both, either way. What we expect to see is that most companies will either start with HawkSearch or start with both. We don't expect people to just do smart search. And part of that is because humans have trained themselves over the past 20 years to search for things with keywords rather than to just say what their goals are. And as a consequence, you won't have as effective results for most sites if you leave the keyword search out of it for basically cultural reasons. And that's fine. And also for a lot of domains, people know, especially in the B2B world, exactly what product they want. So you don't want to miss out on those. So you're going to get, I think, most customers buying both or buying HawkSearch. And the decision to upgrade to SmartSearch is, I think, very easy. And it's really a financial decision. One, for most customers, whether right now it makes sense for them and based on what their market is. So if we can get a fast sale by just selling HawkSearch today and give them a little bit of time to reap the benefits of that and come at them back in six months and do the upgrade, that works just as well.
spk01: And one last question, because I know the search – is for the stores and to improve the ROI from customer inquiries. Is it also, or are you seeing customers who want to use it internally to help their efficiencies?
spk04: We have, and that's not the most common use case, but we get sales every quarter to that end. And one of the examples in even the most recent quarters is a customer whose customer support team has a huge number of databases with, you know, FAQs and other third-party information, and they use search internally, Hawk Search, to find that. And an interesting use case that happened just this quarter is a customer that has thousands of, tens of thousands of PDFs of product descriptions that they consider proprietary information. And they don't want to share that online, but they want Smart Search to read all of that information, learn more about their products, and then to be able to more intelligently help their customers find products that they need. So when you think of SmartSearch, what it can do is a couple different components. One, large language model. That is a sense of understanding in general what somebody is speaking about and asking for. And then two, what's called a vector database. And that's like the long-term memory for SmartSearch components. that allows it to study an existing catalog, brochures about those products, and so forth, and understand what is in the product. And then we bring those two together to get more intelligent results. So we can train off of proprietary internal information that you don't want shared to the outside world to just make our smart search understand your products even better and get more intelligent results for your customers. Okay.
spk01: Well, thanks for the info, and keep up the great work, guys. Thank you, Howard.
spk00: Thank you. Once again, to ask a question, please press star 1-1 on your telephone. Again, that's star 1-1 to ask a question. Our next question comes from the line of Per Jacobson. Per, your line is open.
spk03: Yeah, hello. Good afternoon, guys, and happy Valentine's, I guess.
spk04: That's right. That's right. Happy Valentine's. Boy, now I've got to run down to the store and get some chocolate for my wife. I forgot.
spk03: Yeah. Trouble abound. Hey, I think I got two things. The first thing is I really want to congratulate the team on this entry into AI in an intelligent and profitable manner. That's great to see. I really appreciate it. It's great. Thank you. The second piece is, I guess, can you provide some color and maybe what's the thinking here on the balance sheet situation with respect to current assets? I mean, pragmatically, and I did hear the $200,000 caveat that we got before. But, you know, pragmatically, we talk about deterioration of $530,000, I think, in that range on the current assets, you know, or one quota. Is there anything that you can tell us about this?
spk04: Yep, yep. And Tom can provide a little bit of additional detail, but I'll provide some higher-level color, which is that, first and foremost, the company... has sufficient cash and has no intention of doing any capital raises to bolster that cash position. And second of all, we have the ability this fiscal year to become cash positive for that close, so there isn't a recurring or structural cash during challenge at all. Tom can speak a little bit more financially.
spk02: Yeah, you can, so we had a decrease there in cash. If you look on the, in those current assets, you'll see receivables are up 200,000 or so. So that is cash that we can go out there and collect and bring that in. And generally not much in short-term assets, short-term liabilities that drove into quarter to exploit timing and flat receivables and payables.
spk03: Okay, I guess... Yeah, yeah, thanks for that. I appreciate it. So if we have an expectation that will become cash flow positive, can we can we sort of like quantify that when when when when do we think that will happen? And, and can we also sort of like, maybe provide some color on is that driven? Is that driven by an expectation of increased sales or reduced expenses? Or where is that? Where's that? Where's that profitability going to come from?
spk04: Right, right. Okay, great. So as an expectation, it'll be towards the end of this fiscal year. And it's going to be driven by increases in gross profit, not decreases in expenses. It's not going to be huge positive cash flow. It's going to be positive cash flow. We never expect to fall into less than a million dollars in cash. And but we don't, see any need to reduce expenses we think that strategically continuing to invest in r d and improve our market position especially in artificial intelligence generates the most long-term value for the company as well as of course investing in marketing and uh and winning new customers so look at gross profit increases and the gross profit is primarily driven through subscriptions at a 70 I think, percent GM this quarter versus services. And we expect that revenue mix between services and subscriptions to continue to be in the 80s.
spk03: Yeah, so I thought, and the gross margins are quite nice. I mean, that's well done. When we look at the increases in license sales, Are we then projecting sort of a rapid increase or is it linear from this point out? What are we looking at here?
spk04: No, it's more linear, and that's the nature of that. So most of our new sales are in the $25,000 to $50,000 in annual recurring revenue per sale, and generally in their hawk search. And often they have an initial engagement of 24 to 36 months in that range. And we typically see five-year total lifetime with Hawk Surge customers. So if they start with a two or three-year renewal, they renew several times in a row. Now, because that initial deal is largely subscription, it gets recognized as revenue. pro rata over the life of that initial contract. So we don't get spikes. And our current quarter, which was outstanding and very excited about it, is not going to, you know, obviously be able to just generate a big spike in our Q2 from a revenue perspective, even though it does from a booking. Now, an important component to revenue growth is net revenue retention in RR. And Ridgeline's products broadly fall into two categories. We've got our growth products, which is really Hawk Search. When I talk about search, I talk about Hawk Search, but Celebros, which is our other search product, and most of those customers are migrating over to the Hawk platform. It's really kind of one product. one effort. And that group of products has a net revenue retention in the high 90 percentile. And when we look at some of our legacy products, they have lower revenue retention and large customers that have maybe $20,000, $30,000 in monthly recurring revenue, $300,000 in annual recurring revenue. And One of the reasons we don't sell those anymore is because that whole marketplace is so expensive. It's dominated by larger players like SAP or Salesforce that can demand those products and they have long sales cycles. But those types of products will bleed down and they create little cliffs of revenue because of just the size that they have. And those cliffs will be more apparent. Now that Hawk Search is, I think it's over 56% of our subscription revenue and growing very rapidly, those cliffs become more and more muted. So this is the year, 2024, when we really start enjoying the domination of our search platform. Lots of smaller customers. Steady growth. predictable growth and the ability for us to continue to make investments in marketing and predictable revenue streams and therefore predictable cash flows.
spk03: Okay. Yeah, I appreciate that and thanks for providing that information. And with respect to the change in the product mix, I mean, you know, that's actually really great. So, With respect to the new contracts, whatever the term is, where we reached a new benchmark in the time at least that you have been here, what was the comparables in the last quarter on that? Do we have any idea of that?
spk04: I'm sorry. I broke up a little bit there. The comparables in the last quarter on new customer wins,
spk03: Yeah, so I believe that in the press release and also in the call you referred to, I believe the number was $2.5 million in new something.
spk04: So this most recent quarter was a little bit better than twice as big as our previous quarter in annual recurring revenue that was won. So we won about twice as much as we did in the previous quarter. And one of the most exciting things that we saw was that many of the sales that we had this quarter started in our first quarter and ended in our first quarter. So that speaks to the length of our sales cycle being less than 90 days for many of those sales. And then also, SmartSearch was only pre-released in late October. And a lot of those sales happened in December. So we think that we've got something here that is going to allow us to grow at a different level. And, you know, we need to invest in sales and marketing, not just innovation. We need to, because that'll feed back and it'll pay for our ideas. So we need to balance those investments and continue to hit those markets. And being efficient And customer acquisition costs is a big focus, and that is why we specifically look for markets that are underserved that we can win and try to become a dominant player in there, like this niche market of electrical distributors that, frankly, wasn't even on my radar 18 months ago. Today, we're at the New York Built Conference at the Javits Center talking to electrical distributors. So those narrow markets are an efficient way for us to win new customers.
spk03: Okay. Thank you very much. That's all I got. Thank you.
spk00: Thank you, Fer. Thank you. I would now like to turn the conference back to management for closing remarks.
spk04: Well, thank you, everybody, for joining us today. I have to say this is a very exciting time in computer science. It's an opportunity for people that understand artificial intelligence, to do exciting things for people who understand their customers and their markets and what those specific needs are to make a real impact. And I think that we're there to do that. We appreciate the continued support from all of our customers and our partners and, of course, our shareholders. We're excited about the business, ongoing growth prospects. We look forward to speaking with you again on our second quarter fiscal 24 conference call, which will be in May.
spk00: Be well. This concludes today's conference call. Thank you for participating. You may now disconnect.
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