Check Point Software Technologies Ltd.

All right. Thank you, everyone, for joining us this afternoon. My name is Hamza Farawalla. I'm the cybersecurity analyst here at Morgan Stanley. And with me, I'm very fortunate to have the team from Check Point during a busy week during their user conference, so we appreciate their time. We have Rui Golan, the CFO, and the legendary Kip Meinzer, head of IR. Kip, Rui, thank you for joining. Thank you. All right.

I've got to do the forward-looking.

Well, let me do mine, and then you can do yours. Before I begin, a brief programming note. For important disclosures, please see the Morgan Stanley Research Disclosure website at www.morganstanley.com slash researchdisclosures. And Kip, over to you. All right.

During the course of this presentation, checkpoints representatives may make forward-looking statements. They are subject to the safe harbor provided by the Securities and Exchange Act of the early 1900s. If any of these sound, well, let's just say there's risks and uncertainties that are associated with any of these statements. And if you'd like a comprehensive view, you should check out our latest earnings release or our latest 20F. And as with all forward-looking statements, there is no duty to update except where required by law. Before I go over, I just have to tell you, I'm so glad that you're healthy. I mean, really, I was worried about you. after being chased by a burning dumpster for three quarters in a row. I mean, you're really in good shape, man.

Okay, on that note, you're coming in hot. Okay, Kip, how about first question for you?

You want to know about the CEO transition?

No, no, I want to know what are your thoughts about Best of breed versus platformization in cybersecurity. Why do you think Check Point is better positioned relative to some of the other competing vendors out there? That's a good question.

Well, I think to start with, nobody else has a platform. They have an idea of what a platform is supposed to be, but they have a bunch of point solutions that they have yet to integrate and deliver. And I think every time I hear somebody talk about platforms, there's a plural. And that's not what customers are looking for. They're looking for integration. But most of all, you know what they really want? Efficacy. They want something that doesn't deliver 60% or 70% efficacy. They want something that gets closer to 100%, say 99.8%. And I don't see anybody else delivering that. I see them delivering actually something that fatigues customers, you know? Point solutions that deliver terrible outcomes on the security side. So I would say that come over to Infinity and you'll get a higher level of security, you'll get more integration, and you'll save a little money too. So yeah, what do you think?

No, so look, Check Point products, definitely top class. You've had Infinity for a while. You're still growing around, on average, mid-single digits, whereas some of your larger competitors have been growing 15, 20, 25% over the last few years. So what's different now? Is it just a go-to-market issue? Do you need to spend more on OpEx? Maybe, Rui, you want to comment as well?

Well, no, I'll hit it right off. I mean, you had a point in time where people bought best-in-breed point of solutions, and you had enough people saying that what you need are point solutions, best-in-breed, that's going to be the thing that's going to keep you safe, right? I think they called it... Detection and remediation is, I mean, that's what you used to tell me. Nobody cares about protection and prevention. KIPP, all they care about is detection and remediation. 2020, we had the seminal event, SolarWinds, let's see what else, the Exchange Hacks, Nation-State Hacks. And so you started seeing our platform start to grow. As you get to where we are now, you have interest rates that are involved too. So now you see people coming up short because people don't want to give you money for things in the future. So where we are today is people have an SEC rule that says, hey, guys, you make a boo-boo, you've got to now report it. And then you've got to put it in your 20F or your 10K. And that's like a material weakness to a board of directors. So security is becoming something that matters. And I don't think it mattered as much back then. So now what you have is people looking and testing. And when you test, you're going to get a different result than you did 10 years ago.

But I think, again, I'll add and I'll set it to your question. I think that we are positioned much better, I would say, in the beginning of this year after we did some acquisition like the Harmony SASE, the Perimeter 81, actually, together with the email security acquisition that we've done two years ago. I think that our portfolio today is much, we have much broader portfolio, much better product that we need to use it to utilize it and show a higher growth. I mean, I think that We did a lot of investment in the last few years, if it's organically or non-organically, to position, to be able to provide all this security platform. I mean, the one platform that includes all the security offerings. So hopefully, with this investment, we'll show high growth in the next year and the next few years than what we showed in 2023. I mean, we didn't invest in order to grow by 4%. That's for sure.

Yeah. Sorry. No, no. OK. No, that's a good segue to next. So, you know, your guidance for 2024 was ahead of the street on both the top and the bottom line. Is the aspiration to be growing double digits again, durably? And do you think you can do that with product revenue, let's say, you know, flattish it down like it has been in the last year?

So I think in order to be in a double-digit, so we can achieve that, we won't be able to achieve it with the flattish product revenues. We need to grow our product revenues if it's a mid-to-high single-digit in order to be in a double-digit growth revenues. And I don't see why we can't be there. I think in the end, although I mean we're all the time talking that the firewall is going to disappear, I don't see the firewall is going to disappear in the end also when we are looking on there. on a research report that's recently published. Still, we're talking about the growth of icing and digits in the firewall in the next few years. And I think that we are able also to take market share in the firewall. I don't see, with all the investment that we've done, with the new product that we launched, we need to take market share and grow faster. And again, to be double digits, we need to grow also our product revenues. We cannot stay with flat product revenues and grow double digits.

The other thing that stood out to me from the last earnings call is you talked about how there's been a positive inflection in bookings, particularly on the firewall side, I think you said, for Q4. Yeah. What is driving that? And then talk a little bit about how the new appliances that you're launching or you just launched with CPX this week, how is that going to drive more refresh activity?

Yeah, so first of all, what we disclosed in Q4 was the new business bookings. that grew double-digit in Q4 after the challenging start for the year, for 2023. I think Q4, we started to see improvement during Q3, and I think Q4, we did see a significant improvement in our business, and we managed to grow double-digit in our new bookings, new business bookings. I think what drove it is mainly Firewall. First of all, it's Firewall, because Firewall is still a significant part of our business, and we did see some of these projects that were postponed from the beginning of the year, getting closed into Q4. And I think that that, together with the email security, they keep growing very strong. And the Infinity, this is the platform that's covering everything, that also through that we are bringing also new logos for this Infinity platform. I think all of that contributed to being this double-digit new business growth, but we need to keep it consistent. I mean, hopefully we'll see this also in the next few quarters, this momentum continues. And that's in terms of that. You asked also about the new products. So we launched a new product, the Quantum Force. Actually, it's a 10 new product that's a major. It's going to replace all our appliances for small, mid-sized, and large enterprises. This Quantum Force has much better performance than the old products. The replaced products, we're talking about 2x or even 3x better performance. And also what was important for us is to be even more attractive in the market, more competitive with much more attractive price performance. So when we priced it, these new products, the pricing is much more attractive. And we hopefully will be able to get also with the new partner program, we'll be able to bring also new logos and not only refresh projects with existing customers.

So you talked a little bit about how customers were delaying purchases with Check Point in anticipation of these new appliances.

Yes.

So now that you've launched it, you've got CPX this week, obviously a lot of enthusiasm there. How do you think that those products will ramp in terms of adoption? What sort of pipeline indicators were you going to be looking for?

So we just launched it, but I think based on the initial feedback that we got from partners, from customers, they really like the new product. I mean, they like the pricing, they like the performance. But again, we need to take into account that there is a transition period. When we are launching a new product, it's not that immediately the customer can buy it, because usually there's a kind of between a month to three months period that mostly enterprises and large enterprises, they need to do their internal certification before they can buy new products. So So hopefully after this transition period, we'll have some time in Q2. I think that we can have an uptick on our product business, and we can see might be acceleration in the approval and in the refill cycle. And hopefully it will contribute to our revenues, the product revenues in the Q2 and then the second half of the year. All right, Kip. Everything is fine with Kip? Yes, sir.

Next question for you so you don't fall asleep there. CEO transition. Yes, sir. Gil Schwedt, obviously, a pioneer of the space, found a checkpoint over 30 years ago, decided he's going to be transitioning into executive chairman role. What was the thinking behind that, and what are you looking for in a new CEO?

I think Gil really called it out on the earnings call. He said, primarily, 30 years, it's time for him to focus on the future of of Check Point and also the future of cybersecurity. He's the one that created Stateful Inspection Firewall, delivered what we have today for the beginning of the industry, and he wants to take it to the next level. And for that reason, he wants to bring in a CEO, someone that's more sales-oriented, someone that can get out there, press the flesh with the CEOs, close the deals, that type of thing. You know, he's going to come into a turnkey operation. That's Hellman. We just need to take that sales aspect to the next level. And I think that's what he's looking for. He's still going to be around in an executive chairman job, which is something you don't usually see in the U.S. It's something that's more to the European side. There's still a day-to-day type of aspect to it. It's not like a typical American chairman who's just four times a year, five times a year. It's somebody that's around a little more regular than that. So, I mean, it's simple. 30 years. I think he's well, more than earned it. Almost 31. Yeah, almost 31. Yeah, good point.

Rui, anything to add there? I think he covered it, I think. We are looking, I mean, the board is looking for a replacement, this kind, I mean, this process, I mean, as Gil mentioned, it might take some time because, again, they are looking for a CEO. It's not something that can take between six months to two years. But I think what Gil mentioned, I think that's the main thing. I don't have anything to add beside it. Yeah.

Kip, going back to you on the question of platformization. Look, I think you make a point about if we stack up the product portfolio for Check Point, pound for pound, it's just as good, if not better, than the competitors out there, or your position is better. So what do you think is missing? You talked a little bit about revamping the go-to-market, the sales. Is that going to require more investment around the channel? Do you need to retrain the sales force to sell the broader portfolio? Just talk a little bit about why you're growing mid-single versus your competitors.

I'll hit the first one, which is one of the things that was missing we've actually added, and that's the SASE aspect. And while we're selling it to the SMB at this moment, later this year it should be fully integrated into the enterprise suite. And so... I think that's sort of a little bit of a missing link on that side. But I think from the go-to-market and the channel aspect, I think Roy can probably address that a little bit better than I can right now.

So I think you mentioned it in one of your part questions. We had a new partner program that we launched a few weeks ago. It's something that we haven't done in the past. I mean, the main purpose of this new partner program is try to be more simple and try to that we're going to see more partners engage with Check Point than we see today. And we do see the simplification of this program. We see, by the way, the positive feedback that we're getting for partners on the simplification of this program, that now they can engage with us much more easily than what they used to be. It used to be in the past. And second, we did a lot of things in order to... We included a lot of incentives in order to bring new logos. So I think we're trying to be more aggressive in terms of bringing new logos. It's one of our focus this year. Also in the channel and also with our sales people that now the complaint includes even more incentive in the past in order to bring new logos to the company. So I think we're doing a lot, we invest a lot in that in order to see high growth and that's what we showed in the past.

Kip, is there any thinking around maybe disclosing metrics to highlight you know, customers buying multiple products with Check Point, anything that you would add maybe on the Infinity platform? Because I know that's a bit of an a la carte model. So any metrics you can give us that show customers are consolidating on Check Point?

First of all, we disclosed Infinity. The Infinity numbers we disclosed, we are doing it for a few quarters already. I think we mentioned it's exceeded the 10%. It's much higher than the 10% that we have. The 10% of our total revenues are much higher in the bookings. So it's something that we started to disclose, I think, a few quarters ago. And again, that shows the growth of this business, the demand for the consolidation, because each Infinity customer consumes more than one product, at least two products. Most of them much more than two products, but at least two products in order to get into Infinity deals. So I think that's where we see the success with the consolidation. And important to say that most of these customers, I mean, we have a lot of existing customers that are moving to Infinity. Most of these customers are expanding their business with Check Point. It's not just a renewal. They are doing a renewal of firewall and endpoint, just a renewal, and that's it. Most of them, when we are looking on their ARR, on the ACV, they're actually expanding their business with us. So that's what's more important even with the consolidation.

Got it. You know, you hit on perimeter 81 a few times. From our understanding, knowing a little bit about the company prior to you acquiring it, it was largely on the SMB side.

Yes.

You know, tech-forward digital companies, but very SMB. How do you plan on bringing that into a larger enterprise segment to compete with some of the more established SaaS vendors out there?

So first of all, we're working on the integration part, on the integration part, because right now the product is still not... 100% ready for large enterprise. There is a work that's being done by our R&D team. We invest a lot on that in order that the integration will be completed by the end of the year. So then we'll be able to sell it to all our, not only to SMBs or small enterprise. In terms of go-to-market, so I think in terms of how we're going to, I think first of all, the Infinity. Right now, I mean, they will be able, part of this integration is also that the SASE will be part of the Infinity platform. So when SASE customer, and we have many large enterprises in the Infinity, they consume Infinity, so our goal is that the SASE will be included there. Right now, they're probably using another vendor in the SASE, if it's this scale or any other vendor. So our purpose is that through the Infinity, they will do consolidation and will take the SASE together with the other products that they have today. That's the main, for the Infinity, and of course for the channel program and for the incentive to channels to bring more a customer into the SASE because we have there also a specific incentive for bringing new customers in the SASE business.

If you actually look at what happened with FireEye and how when the sandbox was brought in line for Palo Alto, for us, for Fortinet, you saw quickly FireEye went away. And when you look at the number of install bases out there for SASE or for what FireEye had, was between $8,000 and $10,000. I mean, I think SASE out there is somewhere between $10,000 and $15,000. But when you look at going into your own install base and how effective that can be, that's where the future really is, a point solution that it shouldn't have the ability to stand the test of time. And I think it's obvious that when you look at a FireEye, that's more of the model that you'll see.

Okay. And then, you know, one of the things, Rui, you mentioned was on Premier 81, is you don't foresee yourself having to invest more in CapEx for the POPs, which I was surprised by. Can you explain why that is, why you guys don't have to be as CapEx intensive as some of the competitors out there?

Because I think, again, when we were looking on the model, and we did a lot of, I mean, part of our due diligence, when we worked on due diligence, we tried to understand the CapEx investment, because it's also something that we considered before we, and I think that they are working very efficiently. The platform today works very efficiently. They have the technology, in terms of the POPs, doesn't need this. I mean, again, of course, if we're going to grow even faster, we're going to need to do some investment. But in the end, it's still not going to be a significant investment for Checkpoint. It's probably going to be, again, if we're going to grow to hundreds of millions of dollars of ARR, so probably going to have some millions of dollars of CapEx. But still, compared to the total business of Checkpoint, the total CapEx of Checkpoint is not something significant.

So today, is Permanente 1 or the SASE product... Is it available in all regions or is it? Yeah. Okay.

Yeah. Okay.

Got it. The other area you talked more about has been email security. The acquisition of Avanon a few years ago, that's in the Harmony portfolio. It really seems like there's been a renaissance in the email security market as it relates to more phishing attacks vis-a-vis generative AI. One, is that something that you're seeing and how would you sort of compare your Harmony email solution relative to some of the newer next-gen email security players out there?

So I think when we are looking today on the technology of the email security that Avon and I use now, it's email security, our checkpoint email security, I think that they are using innovative security in terms of API, using API, something that most of our vendors... I think that I had one of our vendors just now acquire a company with API technology that will be able to migrate API into the email security. But... But I think that we have an innovative security that gives us an advantage. I mean, if we are looking now on our competition there, we are taking a lot of market share every quarter. I mean, we are growing much faster than the email security market. Because in the end, the email security market in general is pretty mature. It's not growing significantly. If you're looking on the market, I think you're talking about 15% growth year over year. We're growing much faster because we're taking a lot of market share because of the innovative technology, because of the the high security that we have together with the security of Check Point and the technology that Havanan brought, this integration together will give, I think, the best email security product today in the market. That's why we see a very high conversion rate there in terms of, I mean, we see very high conversion and very high win rate, I would say. And hopefully it will stay because we see the demand keep growing in the email security, although we're growing very nice. We grow Since we acquired them, we more than tripled the business there. And it keeps going. I mean, we see the demand for 2024. I see the pipeline for this year. I hope it will stay like that. And we really, I mean, we even now we understand that we need to invest even more in our go-to-market because we see the potential, we see the demand, and we're going to even expand ourselves there because I think that the potential is even bigger than what we grow so far.

Yeah, and certainly timely acquisition. I think for a while we didn't really see a lot of innovation in the email security space because the view was Microsoft's going to put more email security features in E3 and that could drive pricing pressure for some of the existing email vendors out there. It seems like there's been a change or an inflection in that thinking. Why do you think that is that enterprises maybe don't want to go all in with Microsoft on that?

I think they, again, I don't want to give my opinion on Microsoft, but I think they want the best security. In the end, they know that we checkpoint email security, they can get the best security. I think that now the first, I think the most danger, I mean, I think most of the attacks today are coming through the email. If you're looking now, it's through phishing, through malware, through email. So the enterprise understands that they cannot take any risk with the security of the email. So they are trying to get the best security they can have, and I think that we can now offer the best security in the email, and therefore they are moving to checkpoints. That's how I see it. I think that the risk is getting bigger and bigger in the email. We see it, I mean, I'm looking in the news, I've seen that almost every other day we see some phishing attack on government or on enterprises, so it's there.

The other area I want to talk about is cloud security, particularly CNAP, which is in the CloudGuard portfolio. You made some early investments there in the CSPM market in particular, but we haven't really heard too much about Check Point as a leader in cloud security. I could be mistaken about that. Why do you think that is, and what are some of the things that you think you need to improve, either from a product or go-to-market perspective, to be one of those cloud workload security leaders?

Yes, so actually we entered the CSPM for the acquisition of DOM9 that we did back in the end of 2018. I think we have a nice business. I can tell you, I have to be honest with you, I think we don't grow enough. I think we need to grow faster in the cloud security, in the Synapse specifically. We're doing a lot of changes there if it's through the leadership of the cloud, because the cloud now is kind of a rocket. We announced it two years ago when we had a specific rocket that will be managed. So there will be a leader for this rocket that will manage all the cloud business. And Now we're doing some changes in the leadership there. So there are some kind of changes that we are working in order to improve the execution of the cloud. But definitely we need to go. I think we have a great product in the cloud, in the Synapse, one of the best, I think, in the market. But so far we didn't manage to grow enough, I mean, to have it more significant to our business. So hopefully with all the changes that we are doing today, we'll be able to go faster there.

I think you also made an acquisition there recently with Atmosec. How does that fit within the CloudGuard portfolio? I believe that's in that area.

It's less cloud. I would say it's more SaaS security. It's more kind of application. It's the security of the application that sits on the cloud, like Slack and Zoom and stuff. So it's not actually part of the cloud or part of the Synapse. It's a very small company. It's a new product that we actually launched in the user conference that we had in EMEA. We still didn't sell anything. I mean, we just launched it, so it's not something that... I don't expect any significant effect from this product. Of course, it's something that can be... I think this is something that's very relevant. It's something that enterprise would understand that they need this kind of product, but for the near term, I don't expect any significant effect from that.

Got it, got it.

Question for you on billings, and Kip, feel free to chime in. I'm trying to keep you involved. No, it's okay. You know, maybe billings obviously not the perfect metric quarter on quarter, but in the past, you know, there's been a decent correlation between trailing 12-month short-term billings growth and the forward revenue growth. I think based on your guidance, there's a bit more of a gap. The forward revenue growth is higher than the trailing 12-month short-term billings growth. So what's driving that? Are there other nuances within billings that we're not seeing?

So first of all, you need to take into account that in the guidance that we have for 2024, we have also a non-organic effect of the acquisition of Perimeter 81 that have approximately a one-point effect on... even without any organic growth, we're talking about one point of benefit from P81. Besides that, I think that, again, we do see, because of the infinity becoming more and more significant to our business, we do see more flexibility around the billing because many of our infinity deals are being billed on an annual basis or even on a quarterly or even a monthly basis. So this kind of flexibility Flexibility also affects, of course, the short-term billing, because if you are billing someone on a quarterly basis, we start to see it more and more. We have written many deals of Infinity that we are billing on a quarterly basis, so that affects the billing, even the short-term. So that's part of the thing. And when I'm looking, for example, on our current RPO for next year, so this is 5%. So you need to look on all the pictures, not only on the billings, And I think in the end, we feel comfortable with what we guided. I think that we even have a potential to upside again. Of course, there is also risk, mainly on the product side, that therefore we have a longer, wider range. But the thing again, on 2024, 2023, we had also a bidding duration issue because of what's going on in the market, the high interest rates. So we did see much shorter duration compared to 2022. I think it's being stabilized, and I think that right now, if I'm looking at Q1 compared to Q1, I think that duration won't be a factor in the billing, because we do see a stabilization since Q1 2023 on the duration.

Okay, got it. And just given, it sounds like duration is more stable, but just given the longer-term headwind, how do you foresee maintaining what have been really high free capital margins at checkpoint? Is it just going to converge with your operating margin? I guess they're not that far apart, but any free cash flow headwind that we should consider as a result of lower billing?

No, I think again, it's also a free cash flow. It's also in the end, it depends on the billings. So if the billing will grow, so I think it will affect positively also the free cash flow. I don't see any significant something. Again, we talked about the CapEx. I don't expect any significant investment there in the CapEx and And again, in the end, the free cash flow really depends on our execution and the billing. So if we'll see a growth in our billings, in our total billings, we'll see also a growth in our free cash flow. So that's how it works.

Any questions from the audience? We've got one here.

So you mentioned some success with customer expansion. I think you... throughout maybe an ACV number. Is there any way that you can quantify that more specifically? How broad it is within the customer base? And why isn't the company thinking of providing more customer-focused expansion rate metrics if that, in fact, is what's happening?

So that's something that we are considering. I think we started to disclose more. I mean, we disclosed last quarter the new business growth. We started to disclose the Infinity business growth. few quarters ago, so it's something that we are considering. Right now, we decided not to disclose the ACV. I can tell you that it's something that we are measuring internally. And the ACV, for example, the ACV of the total Infinity customer is more than 10% of our total business, of our total ACV in Check Point. And it keeps growing. Every quarter, it keeps growing. Even Q over Q, it keeps growing by tens of millions of dollars. But again, I can tell you that it's growing. It's not something that we disclose, but it's very healthy. I mean, in the end, it shows that our customers expand their business with us. And it shows that even without bringing new logos, hopefully we need to bring more new logos. But even without new logos, we can go faster in our business.

Let me just add on top of that that, look, we don't want to give you metrics and then take them away. You've seen other companies do that, and that's just not something – that's apropos. So what we want to do is we want to make sure that when we give you a metric, we understand how it's going to be interpreted and everything else. And I know you guys say everybody else giving you everything else also, but they seem to only want to give it to you when they're going like that, right? And then they start to take them away when they come down. So we want to make sure that whatever we give you, you're going to be able to hang on to and you're going to rely on. And so for now, we try to give you wildcards, things that we think can guide you through understanding our business. And we'll continue to do that till we get comfortable with, you know, metrics that we can provide you on a more regular basis.

The second question is just on quantum boards. I mean, you sound pretty excited just based on some of the early customer feedback, but realistically, just given the time it takes for customers to go through the process of testing, getting the funding, is it really a 2025 event before it potentially impacts product?

I believe it can affect also the second half of the year. I think that, again, you are right that there is a process of testing the product, but in the end, it can have also a nice effect on the second half of 2024. Of course, the 2025 is going to have an effect on the full year, but I think that hopefully we're going to see this effect from Q2, but mainly from the second half of the year.

Any other questions? All right, I got a couple more. For keep.

I jump all. Jump all. Capital allocation, I have a checkpoint, very cash rich, about $3.5 billion or so in net cash. You've been consistently generating over $1 billion in free cash annually. Most of that has gone to the buyback. I'm curious your thoughts on more M&A going forward.

We are considering all the time M&As. I mean, we have a designated team that 100% of their time is working on M&As, on opportunities in M&As. So we are looking all the time on M&As. We have $3 billion in, I mean, $3 billion in cash, so we have the opportunity to do M&As, but we're going to do M&As whenever, I mean, for companies that we really believe that can integrate wealth into Check Point, like Avanon, like P81 that we just acquired. So I think The thing that we acquired three companies last year, it doesn't mean that we're not going to do more acquisitions again. If we're going to find the right fit, we're going to do more acquisitions. And so until we're going to find this acquisition, we'll just keep doing buyback in the same levels that we've done. I don't know if any company is doing buyback in these levels in terms of things. We're talking about 7%, 8% of our outstanding shares every year. So I keep doing this buyback and whenever we're gonna see some interesting targets. We're gonna use this cash for for doing M&A's Anything to add there?

Nah, I think that covers it.

What about just thoughts, I mean we've seen some companies, Salesforce recently, Meta, you know launched a dividend and that's been a debate internally at Check Point for a little while, but any thoughts around that any updated thoughts on

Actually, it's something that we are considering every other year. It's something we're doing, the expansion for our buyback program. It's something that's being discussed and considered in the board. Of course, it's something that can be... Right now, the board believes that the right approach is to do the buyback, but maybe it will be changed in the near future. I don't know. Again, it's something that's being discussed and being... And right now we keep doing buyback, but if something will change, probably we'll announce it in the market. But it's not something that we are, something that's being considered all the time. Great.

So I guess we'll end it a few minutes early. Rui, thank you so much for joining us, Kip. And Rui, especially thank you for joining us from Israel. And, you know, we hope to be back in Tel Aviv at some point later this year or next year. But thank you so much for coming.

Thank you.

Probably next year, but thank you for coming, and obviously our support and our hearts are with you. Thank you. Thank you for having us.