InMode Ltd.

Q1 2023 Earnings Conference Call


spk07: Good day, and welcome to the In Mode First Quarter 2023 Financial Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Mary Siegel, CEO of MSIR. Please go ahead.
spk00: Thank you, Operator, and to everyone for joining us today. Welcome to InMode's first quarter 2023 earnings call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements. and the safe harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please go to the investor relations section of the company's website. Changes in business, competitive, technological, regulatory, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. As such, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them except as required by law. With that, I'd like to pass the call over to Moshe Mizrahi, Chairman and CEO. Moshe, please go ahead.
spk03: Thank you, Miri. and to everyone for joining us. With me today are Dr. Michael Kreindl, our Co-Founder and Chief Technology Officer, Yair Malka, our Chief Financial Officer, Shaquille Lacani, our President in North America, Dr. Spiro Teodoro, our Chief Medical Officer, and Raphael Liekerman, our VP of Finance. Following our prepared remark, we will all be available to answer your questions. we reported revenue of $106.1 million in the first quarter, an increase of 23.5% compared to the first quarter of 2022. Sales from consumable and service continue to grow in the first quarter, and Shaquille will go over that in more detail shortly. I would like to take the moment to recognize that 15 years ago, we started this company with a small investment of just $3.5 million. And in an idea that with bipolar RF technology, our expertise and knowledge of the aesthetic industry, we can disrupt the industry and help close the treatment gap. We have been accomplishing this by providing patients remarkable and lasting results. We are working closely with leading plastic surgeons that have endorsed our safe, FDA-approved technology. Today, we can say that InMod is the leading global provider of innovative, minimally invasive aesthetic and wellness solutions, operating in 92 countries with seven patented technologies across 10 product families and an install base of over 8,400 platforms in the United States and over 18,300 systems globally. We are proud to recognize this 15-year anniversary as we announce a strong start to the year. We would not reach these solid, consistent results without the dedication and hard work of our employees. And I would like to take the opportunity to thank them for their commitment Last year, we successfully introduced the Envision platforms in Canada. Envision is an innovative technology targeted for ophthalmology and optometrist market. And we expect to launch these platforms in the U.S. in the coming months. As we mentioned last quarter, the next generation EVOC, our hand-free platform for face treatment, is planned to launch in the second half of this year, and we look forward to updating you all on this progress. Now, I would like to turn the call over to Shaquille, our president in North America. Shaquille, please.
spk11: Thanks, Moshe, and everyone for joining us. We're happy to report a strong first quarter with significant growth coming from consumable sales. Revenue from consumables and service grew nearly 43% year over year. This is a strong indication that the platforms we sell are being used more frequently signifying continued positive demand and momentum. Our Morpheus 8 platform continues to gain traction and benefit from our brand ambassadors, strong market awareness and positive patient results. As Moshe mentioned, We'll continue our strategy to expand into new areas of wellness, such as ophthalmology, optometry, markets with our Envision platform. We've begun to hire focused sales reps for Envision, and we gradually expect to establish a dedicated sales team for this market and for women's health and wellness market in the future. Lastly, I'd like to thank our entire North American team for their continued hard work. I'll now hand over the call to Yair for a review of the financial results in more detail. Yair.
spk02: Thanks, Shaquille, and hello, everyone. Thank you for joining us. Starting with total revenue, Inmo generated $106.1 million in the first quarter of 2023, representing a 23.5% year-over-year increase with a gross margin of 83% on a GAAP basis. Traditionally, based on past seasonality, Our first quarter is the slowest quarter in the year. We expect 2023 to behave in a similar way to last year. First quarter sales outside of the US accounted for $43.8 million, or 41% of sales, compared to 38% in Q1 of last year. We see growth coming from different regions, with sales in Europe hit a new record in Q1. and we are planning to establish at least one additional subsidiary in Europe or Asia later this year. To support our operations and growth, Inmode now operates in total of over 90 countries with a sales team of more than 236 direct reps and over 81 distributors worldwide. Capital equipment in the first quarter represented 81% of total revenue, while consumer goods and service revenues accounted for the remaining 19%. Gap operating expenses in the first quarter were $46.8 million, a 30% increase year over year. Sales and marketing expenses increased to $41.7 million in the first quarter, compared to $30.8 million in the same period last year. This increase is attributed to the addition of new sales representatives, as well as investment in direct-to-consumer advertising campaigns and hosting in-person events to support the company's growth projections. Share-based compensation accounted for $4.2 million in the first quarter of 2023, an increase compared to $3.1 million in the first quarter of 2022. On a non-GAAP basis, operating expenses were $43 million in the quarter compared to a total of $33.4 million in the same quarter of 2022, representing a 29% increase. GAAP operating margin for Q1 was 39% compared to an operating margin of 41% in the first quarter of 2022. Non-GAAP operating margin for the first quarter of 2023 was 43%, a slight decrease from 44% in the first quarter of 2022. GAAP diluted earnings per share for the first quarter were $0.47 compared to $0.36 per diluted share in Q1 of 2022. Non-GAAP diluted earnings per share for this quarter were $0.52 compared to $0.40 per diluted share in the first quarter of 2022. Once again, we ended the quarter with a strong balance sheet. As of March 31st, 2023, the company had cash and cash equivalents, marketable securities and deposits of $574.5 million. This quarter, excluding a one-time tax payment of $15 million, Inmo generated $36.1 million from operating activities. Before I turn the call back to Moshe to take your questions, I'd like to reiterate our guidance for 2023. Revenues between $525 million and $530 million. Non-GAAP gross margin between 83% to 85%. Non-GAAP income from operation between $236 million and $238 million. Non-GAAP earnings per diluted share between $2.58 and $2.60. I will now turn over the call back to Moshe.
spk03: Thank you, AU. Thank you, Shaquille. Operator, we are ready for Q&A.
spk07: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then 2. At this time, we will pause momentarily to assemble our roster. Our first question comes from Michael Sarcone with Jefferies. Please go ahead.
spk01: Thanks, and good morning. This is Mike on for Matt this morning. Just the first question on guidance. You had a really strong start to the year, nearly 24% growth in the first quarter, and that was on the toughest comp of the year. Can you just talk about, you know, how you think about guidance and some of the key assumptions there? I know you've got Envision launching in the U.S. soon and NextGen Evoke in 2H. So, again, just some key assumptions around guide, and is it fair to characterize the guide as conservative?
spk03: Yeah, I would say, as always, we claim we try to be very conservative with guidance. Although we did a little bit better than the consensus on Q1 2023, we decided to keep the guidance until the end of Q2 to see how Q2 will be. As you know, there is some seasonality in this business. The first quarter is the slowest one. Second quarter must be much stronger than the first quarter. If we will successfully end the second quarter with the expectation and above the consensus of the estimate, of the analyst, then we will consider increasing the guidance. But on the first quarter, I mean, we did 106 compared with 102 or 101 consensus estimate. We felt like it will be better and more conservative to stay with this guidance and wait another quarter to see what will be the situation in the U.S. and in the rest of the world as far as slowdown, recession. you know, increase interest rate, and then we'll feel much better to increase the guidance sometime at the end of Q2.
spk01: Okay, thanks, Moshe. That makes sense. And then, you know, are you seeing any changes in your customers' ability to finance systems?
spk03: No, we don't. We don't, although it's taken a little bit longer, especially in the U.S., and Shaquille will elaborate on that. But in Europe, for example, we signed an agreement with a bank that is helping us to finance customers in Europe, something that we didn't have in the last, I would say, three years. which will make it easier for customers in Europe to finance the system. In the United States, Shakir, do you want to say a few words on that?
spk11: Yeah, sure. So, you know, like Moshe said, we're not seeing too much on that end. We are seeing it taking a little bit longer than we're used to, just kind of looking at risks, so on and so forth. But right now, we haven't seen that as a prohibitive factor.
spk01: Got it, and when you say a little bit longer, that's just kind of the selling cycle?
spk11: It's just, yeah, well, not necessarily a selling cycle. They're just requiring different documents from the buyer just to, again, ensure that, you know, basically it's like, I wouldn't say it's to the degree of what happened back in 2008, 2009, not even close to that, but they're just banks are just being a little pickier with who they're giving their money to. So they just want to ensure that they get the appropriate information. So, you know... Previously, you'd be able to get X amount of dollars approved with just a credit application. Now they might need to provide some further documentation along with it. So it might add 12 to 24 hours to the process.
spk01: Got it. Thank you. And I'll just sneak one more in there. Interesting disclosure in the press release just about the impact of popular weight loss drugs. It was going to be one of my questions. You're seeing an influx of loose skin patients. You know, is there any offset there, like, you know, when you factor that in? The weight loss drugs, you know, do you expect to see lower demand for liposuction? And kind of, you know, what's the net impact on demand for in-mode procedures that you're expecting?
spk03: Spiro, could you please answer that?
spk08: Sure, that's a great question. Look, it's on the contrary. The weight loss actually helps us because, first of all, we're the skin tightening company, right? So when the patients have loose skin, They've already lost the weight. They come to us to be able to tighten that. So what it actually does, it increases the number of patients you can do with liposuction, right? So they still have some fatty pockets or fat areas, fatty areas they need removed. But if you have loose skin, it kind of limits them in the aesthetic result. So adding a tightening procedure in addition to the liposuction capabilities we have increases the size of that market. What the drugs have done is increased awareness. I mean, they use this marketing thing like Ozempic Face, right? That's a cool name, but at the end of the day, it's just weight loss. And we deal with that, and our plastic surgeons and our doctors across the board are always dealing with loose skin. I remind you that the holy grail of plastic surgery is the ability to tighten skin without scars. And even though a lot of these patients might end up needing an excisional procedure, perhaps, depending on the amount of weight loss, We're perfectly positioned to take advantage of this, and our clinics have seen a large influx of patients since this has taken over like wildfires. So net-net benefit. Does that answer your question?
spk01: It does. Very helpful. Thank you.
spk08: You're welcome.
spk07: Our next question comes from Matt Misick with Barclays. Please go ahead.
spk06: Hi, this is Sarah on for Matt. Thanks for taking our questions. I guess just to clarify on the guide, is it fair to say then that you don't see any specific concerns related to the rest of the year and it is just general conservatism?
spk03: I didn't understand the question. Do you ask if we see any concern in the market?
spk06: Yeah, just based on the answer you provided earlier, I'm just wanting to clarify if it's fair to say that you don't see any specific concerns or it's just general conservatism into your current drive.
spk03: Well, I believe we said it very clear. We don't see any sign of slowdown, any sign of recession on the market that we operate. Maybe now the market is different. But, you know, just because our technology today is in the very embryonic stage. I mean, we have less than 20,000 systems installed, and the potential is a few hundred. If you take into account only doctors who are doing medical aesthetic using laser and others, all of them in the future will need bipolar RF because with laser they do only topical treatment, and if they want to do body and face reshaping, they will need it. So we don't see any slowdown. On the contrary, I have to say that we sell more disposable this quarter than in the fourth quarter of 2022. And usually the fourth quarter is the strongest one. So we don't see any slowdown. The reason why we did not change the guidance is because we wanted to wait another quarter before we change. We just gave the guidance a quarter ago. And if everything will look according to our expectation on the second quarter, then the guidance will be raised.
spk06: Understood. That's helpful. And then I guess shifting gears here to Empower, just curious on how has this been tracking and if the 20% growth in 2023 is still the right way to think about this or do you expect a bit more acceleration in this year?
spk03: Well, we didn't give any guidance on Empower this quarter, but I can tell you that we sold in the first quarter, we sold more than the first quarter of 2022.
spk06: Okay, great. Thank you.
spk07: Our next question comes from Danielle Antelsi with UBS. Please go ahead.
spk05: Hey, good morning, everyone. Thanks so much for taking the question. Just a question mostly on capital allocation. You guys have talked in the past about how to think about potential M&A here. Any updates there on how you're thinking about capital allocation and potential for a deal to happen sometime this year?
spk03: Well, that's the $64,000 question I would say. Yes, we are exploring opportunities, more than one. and some of them we even spend money to check, to do diligence, et cetera. One thing I want to say, very difficult to find a company that will be with the same profitability structure of InMod. So any company that we will acquire should not dilute the shareholders. It should be creative and not dilutive. And it's not easy. It's not easy because of the profitability structure of InMod. So we're very careful in the analysis that we're doing on companies that we would like or that we're exploring a possibility to do M&A. I cannot announce anything special today. The only thing I can say that we spend on the time, money, management attention, and we're looking for acquisitions.
spk05: Okay, got it. That's helpful. And then just a question on indication expansion. So, you know, Empower is obviously doing well. Beyond that, you know, as we think about stress, urinary incontinence, et cetera, any updates or next steps we should be looking for to measure in mode against making progress there? Thanks so much.
spk03: In mode against what? Against whom? I don't think we have any questions.
spk05: No, no, no, just whether like anything, any milestones we should be looking for to measure progress against getting those indications or launching in those markets.
spk03: I believe we said a quarter ago that we'll be happy and expect to do 20% more on Empower than last year. We're not changing this guidance today.
spk05: Okay, thanks.
spk07: Our next question comes from Dane Reinhart with Baird. Please go ahead.
spk04: Hey, good morning, guys. Thanks for the questions. Just wondering if you can maybe give any more color, you know, kind of on the U.S. placements just being up 10%. I think that was a little bit lighter than we and what some other investors had kind of been expecting. So I know, you know, seasonality definitely plays a factor. Is there anything else there impacting? And I know you have both a Vogue and a Vision launching kind of later this year. What might we be able to kind of expect for those to contribute to U.S. placements later this year?
spk03: Shaquille, could you please elaborate on that?
spk11: Sure. Yeah, as far as placements go, I mean, when it comes down to revenue, we still had a pretty significant amount of growth. And you're looking at placements again. I'm not sure what model you guys have in place, but we don't see too many economic factors affecting things right now or changing the growth path that we're on. Of course, we anticipate further growth, as I mentioned in the script, in building out Envision and a Salesforce dedicated to that. We do have plans to to obviously see some pretty substantial growth. Can't give you a number, really. We're kind of feeling out the market and getting things ready, but we're extremely excited about it, and we think there's gonna be a nice little runway for us. Okay, thank you.
spk02: I think it was mainly due to seasonality. It was mainly due to seasonality. Q1 tends to be the slowest in the year, and especially we see this effect in the U.S., So that's something that I would like to add.
spk03: It's not something new. It's been like that in the medical aesthetic category or industry or whatever. So I don't think that InMod can change that.
spk08: I think, Sparrow here, I think what's important to outline is that there is a discrepancy between the macro picture and what people are saying, what we're seeing on the ground from demand for patients and doctors. We don't see any slowdown. The demand is very high. Most of our physicians are booked, still booked, solidly two, three months in advance. So if there is something that people are concerned about, we're not seeing it. And that's sort of what we're seeing from all the offices we talk to. So if that helps you at all.
spk04: Okay. Yeah. Thank you. And then on the Morpheus 8 new burst in 3D modes, I know we've been kind of seeing some more competition here in microneedling just over the past year or two. with some other competitive launches. So can you just maybe give us a little bit more color on how you believe these new kind of Morpheus 8 options and its bipolar design are helped differentiating versus competition?
spk03: Okay. First, I want to say something about comparison of Morpheus, which is a fractional RF, the only fractional RF technology on the market because it's well-protected, than all the other microneedling technologies. The fractional RF, which we call Morpheus as a brand name, is basically a bipolar RF device, which basically delivers the energy from deep to the epidermis. And by doing that, treat all level of the skin. Unlike all the others, microneedling, where, you know, delivering the energy only on the tip of the pin. So the total, that's what makes the results much better. Now, regarding the 3D, the 3D is basically something that we have developed for body treatment. In body treatment, we use 40 pin tips, which make it larger spot size for treatment. And just because the return electrode, the second electrode of the bipolar is on the skin, We wanted to make sure that the distribution of energy in all four pins will be equal to eliminate any kind of uneven distribution between the pins, and therefore we develop it. It's a minor change, but it gives the doctor some advantage in saving time in the treatment. But overall is the same Morpheus technology.
spk04: Okay. Thank you. And then if I can just sneak one last one in, I think, you know, every quarter you kind of have given an absolute number of consumables sold. I think last quarter was like 230K and 180K the two quarters prior to that. I was just wondering if you could update that for the first quarter.
spk03: We did 237,000 pieces.
spk04: Okay, thank you. Appreciate the questions.
spk07: Our next question comes from Mike Mattson with Needham & Company. Please go ahead.
spk09: Yeah, thanks for taking my questions. Just starting with Empower, wondering if you could give us an update on where you're at kind of launching that product outside the U.S., which markets it's been launched in, and And then I get similar question, you know, for envision, um, when you do launch that product, I guess we'll be first in the U S and I mean, is that going to follow kind of a similar pattern as, as empower outside the US?
spk03: Okay. The empower right now is approved only in certain countries. Uh, it's approved in, uh, in Mexico. Uh, and we're now working in Argentina, not yet in Brazil, which is a big market. and not in other countries in Latin America. We have to deal with these platforms and individual regulatory body. In Europe, it's already approved in several countries, but due to the fact that in Europe the regulation system is changing from what they call MDD to MDR, and I will not try to explain the difference because it's complicated, We have to go again and do some re-approval in certain countries, and we're doing it right now. But in most countries in Europe, we're in the process of introducing it. This quarter, it will be introduced by some luminary doctor that we'd bring from the U.S. in three main countries, Spain, U.K., in Spain, UK, and France. Following that, we will introduce that in Italy. In Italy, it's a special regulation. We don't have the clearance yet. In Asia, we cleared the system only in one country, which is Australia. Also, in India, we're starting now. China, Korea, and Japan, the system is not clear yet from a regulatory, but it's in the process. Take time. So that's the situation outside the U.S. In Canada, it's already cleared. In the U.S., as you know, we're selling there. As far as Envision, outside the U.S., as you know, we did a soft launch in Canada before we started in the U.S. In the other part of the world, we have not started yet.
spk09: Okay, got it. Thank you. And then just within the minimally invasive category, I mean, I know you don't break out kind of detailed sales by the product lines, but you know, you have body type, face type, Morpheus 8, probably some other things in there, you know, are they kind of all contributing equally to the growth or, you know, Morpheus 8 does seem to be generating quite a bit of buzz, social media and other places. I mean, is Morpheus 8 the primary driver there or is it just everything?
spk03: Well, Morpheus 8 is the star, but it's not the only one. You know, we continue to sell the Optimus with all the other hand pieces. We have good results in Asia with the body effects, mini effects. We're doing very well with the minimal invasive body type, face type in Europe. Yes. Morpheus is not a platform. Morpheus is a technology which basically is a handpiece that can go in different types of platforms. And we try to incorporate Morpheus in the platforms that we're developing in order to make everything more attractive. In addition, we're developing combination treatment of Morpheus and Forma, body effects and Forma. many effects and plus. So we continue to develop in a growing market with the existing portfolio by combining and by synergizing between the technologies and the hand pieces.
spk08: Mike, this is Spiro. Just to give you a little color. Primarily, we're an aesthetics company, right? And we have, by increasing our TAM... This is really important. That's why we went into the OBGYN, gynecology business. We're going off homology business. And what we looked at is our narrative is, look, we're going to teach these doctors how to do aesthetics. When we looked at Empower, we go in with something they already know, right? They have these patients in their office. They have stress urinary incontinence. This is a captive audience, which they're not used to sort of charging for. And then we come in with all the other technologies to teach them aesthetics. So that was our theory. we looked at our Morpheus tips across the board, United States and North America, and we saw that the top accounts for every intravaginal Morpheus tip sold or used, there is six Morpheus tips used for aesthetics reasons on that Empower platform. So that just justifies and sort of proves our narrative that, yes, we go in with something that they're comfortable with, they have that existing patient population, and sort of the Morpheus tips show that. Then we looked across the board, And we saw, okay, how about all the accounts? And we saw for every intravaginal Morpheus tip, we have 2.5 Morpheus tips, cosmetic ones, being used the rest of the body. So let's not forget that we are an aesthetics company, and Morpheus is a technology, like Moshe said. But the fact that the consumables are rising shows there's adoption. And our narrative is actually playing through. And we plan on doing the same with InVision. Does that make sense? Give you a little color, right? Yeah.
spk09: Yeah, it does, and I guess it's a good point. I mean, because your sunk platforms offer multiple capabilities, so it's a little hard to separate them, I guess, in terms of what's actually driving the growth, at least in terms of platform sales. Got it. Thank you. No problem.
spk07: Our next question comes from Kyle Rose with Canaccord. Please go ahead.
spk10: Great. Thank you for the commentary. I wanted to ask just a little bit about the commentary around the weight loss drugs in patients there. I know it's all going to roll up into minimally invasive, but should we expect to see more utilization of Morpheus and BodyTite, or do you expect that that might drive more of the hands-free, given you have some new products that are coming there?
spk11: Hey, Kyle. I think it's actually going to be a mix of both, frankly. As Spiro mentioned earlier, the holy grail of plastic surgery is being able to tighten skin. Our goal and our job here is to be able to provide the appropriate tools for each physician or surgeon in order to actually help treat those things that they're looking to treat. So if they have some laxity, great. Like Spiro said, there's still going to be some patients that have massive weight loss, and they're going to need an excisional procedure. We're not trying to take away from that as well. But if there's some ways that we can get in, whether it's with body type, face type, or with our hands-free technology, or even with Morphist 8, again, it's our job to basically provide the appropriate tools for each one of the appropriate surgeon or provider so that they can actually pick and choose what they need to use to optimize patient outcomes. Does that make sense, Kyle?
spk10: Yeah, it does. It's helpful. And then on, I think you've had some commentary, you know, as you go in some of the, I guess, wellness or non-core markets, we'll call them, you've talked about potentially building out, you know, some additional sales and commercial teams there. One, I guess, what is the status on those initiatives? And then two, how should we think about those investments taking place over the course of the year and relative to your operating expense guidance?
spk11: Sure. So in terms of from a distribution standpoint, we're actually already in the process of hiring, as I mentioned. We've made several recent hires, some from competitors, some from outside that we'll bring in and train, you know, the in mode way. And, you know, we're obviously looking for that to materialize over the next few quarters. Again, as you know, Kyle, you've been following us for quite a while. We like to do things slow and steady to start. We don't like rushing right out the gate. So we want to do it right. We want to do it in a way where, you know, it makes sense for the reps. It makes sense for the company. and at the end of the day is going to contribute to the bottom line and top line. So from that standpoint, we look at it that way. I don't see, you know, anything major in terms of anything extraordinary from what we already do in terms of expanding distribution that's going to lead to any major costs.
spk10: Okay, then the last question I'll ask is just on the, we'll call it the core business and the core commercial team. You've got a competitor out there that there's a little bit of drama going on. Is there any opportunity to peel off commercial or R&D talent there and just, you know, maybe kind of walk us through your thoughts on being a share taker via some of the commercial talent in the market? Sure.
spk11: I guess we'll leave them as a secret. No, so we're. I mean, that is Kyle. You know, as we know, when there's chaos, there's opportunity, right? So, you know, we're, we're, again, we're very selective and picky with the people that we bring on. But again, we also want to bring on people that are going to be able to do business the way that we're used to doing business. So we're, we're absolutely on the hunt right now. There's no question about it and we will be, but again, we're only going to, you know, that, that might just expose maybe five to 10% because we're, we're only going to take the best of the best and bring them over and help them kind of, you know, develop and, and learn again to do things the in mode way. So, From that standpoint, of course, Kyle, you know, you could probably imagine, you know, we were on it within probably about 30 to 60 minutes. But, you know, again, it's not – I wouldn't say it's something, you know, extremely – it's not something super major. You know, if people are looking to leave or looking for a better opportunity, we're obviously going to bring in the right people and be able to provide them with a good livelihood and so on and so forth. But, again, we just want them to be able to follow the in-mode way. and do business the right way.
spk10: Great. Thank you for taking the questions. Awesome.
spk07: This concludes our question and answer session. I would like to turn the conference back over to Moshe Mizrahi for any closing remarks.
spk03: Thank you, Operator. I want to thank everybody for joining us today. I will be happy and I'm sure that everybody will join us next time. Thank you for your time and thank you for all the questions that you ask us. See you next quarter. Thanks all.
spk07: Conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

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