Mitek Systems, Inc.

Good afternoon and welcome to the MITEC Systems Fiscal 2022 Fourth Quarter and Full Year Earnings 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 Todd Curley of MKR Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, and welcome to MITEC's fourth quarter and full year Fiscal 2022 Earnings Conference Call. With me on today's call are MITEC's CEO, Max Koneckia, and Interim CFO, Fuad Ahmad. Before I turn the call over to Max and Flood, I'd like to cover a few quick items. This afternoon, MyTech issued a press release announcing its fourth quarter and full year fiscal 2022 financial results. That release is available on the company's website at mytechsystems.com. This call is being broadcast live over the internet for all interested parties, and the webcast will be archived on the investor relations page of the company's website. I want to remind everyone that on today's call, management will discuss certain factors that are likely to influence the business going forward. Any factors discussed today that are not historical facts, particularly comments regarding our long-term prospects and market opportunities, should be considered quarterly statements. These quarterly statements may include comments about the company's plans and expectations of future performance. Forward-looking statements are subject to a number of risks and uncertainties which cause actual results in different materially. We encourage all of our listeners to review our SEC filings, including our most recent 10-K and 10-Q for complete description of these risks. Our statements on this call are made as of today, June 29, 2023, and the company undertakes the obligation to update or revise publicly any of the forward-looking statements contained herein, whether as a result of new information, future events, changes in expectations, or otherwise. Additionally, throughout this call, we'll be discussing certain non-GAAP financial measures. Today's earnings release and the related current report on Form 8K describe the differences between our non-GAAP and GAAP reporting and present the reconciliation between the two through the periods reported in the release. With that said, I'll turn the call over to MITAC's CEO, Max.

Thanks, Todd. Good afternoon, everyone. Thank you for joining us today. I'm very excited to finally report our full year fiscal 2022 results. The enlisting of BDO has enhanced our financial controls and governance, and while it temporarily impacted the filing of periodic fiscal reports, we are now a stronger business. Fiscal 2022 was another record year for MyTech. Record revenue, record earnings, and strong cash flow from operations. Product innovation also continued during that time. We launched MyTech's integrated identity platform, MyVIP, ID Live Face Plus, and enhanced check intelligence within the check product defender offering. We were also awarded patents recognizing our commitment to biometric excellence. This ongoing momentum reinforces our optimism about our long-term prospects and our ability to further penetrate our large target addressable markets. Quickly looking at the numbers for fiscal 2022, we recorded record revenue of $143.9 million, representing growth of 20% year-over-year. We also generated record non-GAAP net income of $40 million, or 87 cents per diluted share, up 17% year-over-year, as well as strong cash flow from operations of $26 million. We accomplished a lot in fiscal 2022 beyond just our record revenue and earnings performance. We provided exceptional customer value to our world's leading banks, fintechs, and marketplaces as they must move more of their businesses online in a secure and trusted way. MyTech continues to distinguish itself as a critical component in the fight against fraud, and during the year, we expanded the breadth of our product offerings and the markets we serve. With that now, let me touch on our two lines of business and their performance during the fiscal year. Our deposits line of business continues to grow in fiscal 2022, with revenue growth of 14% year over year. Mobile check deposit is used by over 7,500 financial institutions and continues to gain traction with consumers due to its convenience and ease of use. Adoption of our check for our defender product also increased, as losses associated with check fraud started to skyrocket. Check Fraud Defender helps banks identify and defend against these fraudulent activities, significantly reducing fraud losses, and our most recent innovation, CheckLivest, enhances the detection of forgeries and synthetic checks. We added several new Check Fraud Defender customers during fiscal 2022, and we believe it will be a growth driver for our deposits business for years to come. Before we move on to our identity business, I'd like to provide a quick update on the USAA litigation situation. While MyTech is not a party to any of the USAA lawsuits, we continue to pursue our declaratory judgment action against USAA to prove that our products do not infringe the four auto-capture patents at issue in the USAA lawsuits as we look to provide support to our banking clients. Along with our efforts There have been some positive developments in the matters related to USAA as the U.S. Patent Trial and Appeal Board, the PTAB, has in the last six months invalidated five of the USAA patents that they have been relying on to sue various financial institutions, two of which are related to auto-capture. We expect the PTAB to invalidate more USAA patents in the coming months as they continue their review of additional USAA patents, including one additional USAA patent related to auto capture. We also intend to continue to vigorously prosecute our case, as Mypex invented all of its core technology, and we believe our products do not infringe on any USAA patents. Switching to identities. I'd like to take this opportunity to highlight the tremendous market opportunity that lies within this sector. As the world becomes increasingly interconnected and digital, the need for robust identity verification solutions has never been more crucial. Financial crimes are becoming more sophisticated, posing significant risks to individuals and organizations alike. The rapid rise of digital transformation has created a demand for seamless and secure online experiences. MyTech is at the forefront of addressing these challenges by providing AI and biometric identity verification solutions that not only mitigate risks, but also enable smooth and trustworthy interactions throughout the customer lifecycle. With the acquisition of WhoYou in 2022 and the subsequent full integration of those platform technologies with our leading biometrics and existing computer vision solutions, We are strategically positioned to capture a substantial share of this expanding market and create significant value for our shareholders. In 2022, we launched MyTech's verified identity platform, MyVIP. Positioned as our leading growth product, this fully integrated identity platform leverages our IP in biometrics, capture, computer vision, and data intelligence and presents it to the customer in a low-code implementation model. Already adopted by leading banks, MyVIP has expanded our addressable market and delivered improved unit economics. Shortly following the close of fiscal 2022, we launched MyPass, the industry's first multimodal biometric solution for continuous identity authentication. With the onslaught of machine-driven attacks, voice and face biometrics used together with built-in liveness checks becomes the strongest and most effortless means to authenticate somebody's identity online. I couldn't be prouder of the team's vigilance in getting this product to market, and I'm eager to see it implemented as quickly as possible from those who have already purchased it. MyPath further expands MyTech's footprint in this category, as well as our overall addressable market. During the past quarter, I had the privilege of attending our annual European Customer Summit, where I had the opportunity to engage directly with our valued customers. It was an incredibly insightful experience, as I heard firsthand about the value of our company's creating and the ongoing battle against digital identity fraud. From large multinational banks to government-associated screening agencies, our customers use our identity verification solution to enable effortless and safe experiences for their for their new and returning customers. Their testimonials serve as evidence of our commitment to combating fraudulent activities and providing innovative solutions that address the evolving needs of the market. We are proud of the positive impact we are making, and we remain dedicated to advancing our technologies and delivering even greater value to our customers in the fight against digital identity fraud. In fiscal 2022, our identity business grew 31% year over year. Our product achievements and customer wins in fiscal 2022 reaffirm our leadership position, and I would like to thank every MyTechian worldwide for their unique contributions to our success. Together, we will continue delivering significant value to our customers. Before closing, please note that we are planning an Investor Day event for later in the calendar year. This will be an opportunity for interested parties to attend a dedicated event to learn of our long-term strategy with specific detail on the next chapter of the deposits business and the significant growth opportunity for our identity products. Now, I'll turn the call over to Fuad to discuss the financial results in more detail. Following Fuad's remarks, we will open the call to questions. Fuad, please go ahead.

Thanks, Max, and thank you, everyone, for joining us today this afternoon. I will start with Q4 revenue and operating results. For Q4 of fiscal 2022, MyFed generated $38.8 million of revenue, a 17% increase year-over-year. Software and hardware revenue was $19.8 million, up 11% year-over-year. The increase in software and hardware revenue is primarily due to the growing contribution of IDR&D, as IDR&D has another strong quarter, and continued mobile deposit reorders. As such, we are pleased with the continued progress in the deposit business. As we've noted previously, IDR&D revenue is transactional in nature and is part of our identity business. However, since it's offered on-prem, we put that revenue into the software line for accounting purposes. Services and other revenue, which includes transactional staff revenue, maintenance, and professional services revenue, was $19 million for the quarter, up 22% year-over-year. Notably, our transactional staff's revenue increased 31% year-over-year to $13.4 million. Driving this growth in transactional SaaS revenue was increased mobile verified volumes, as well as the addition of WhoYou SaaS revenue. For Q4-22, deposits revenue increased 7% year-over-year to $22.6 million, driven by mobile deposit reorders. Identity revenue increased 34% year-over-year to $15.2 million, driven by addition of WhoYou SaaS revenue and strong contribution from IDR&D and growth in our mobile verified product line. We delivered software and hardware growth margins up to 98% for the quarter. Growth margin on service and other revenue was 74% for the quarter, and total growth margin for the quarter was 87% compared to 90% in Q4 of last year. Total GAAP operating expenses, including cost of revenue, were $35.8 million compared to $29.3 million in Q4 of last year. This increase is due to investments to grow our identity business and additional costs associated with the acquisitions of IDR&D and WE. Sales and marketing expenses were $1.25 million compared to $8.4 million a year ago. R&D expenses were $8.3 million compared to $8.2 million a last year, and our GMA expenses were $8 million compared to $6.1 million a year ago. GAAP net loss for the quarter was $300,000 for a loss of one cent per share. Our diluted share count was $45.3 million compared to $46.2 million a year ago. Now turning to our non-GAAP results. Non-GAAP net income for Q4 was $9 million. or 20 cents per share, a decrease of 11% year-over-year as a result of additional headcount and other expenses from the acquisition agreed. We believe non-debt net income provides a useful measure of companies' operating profitability and cash flow by excluding amortization and acquisition-related costs, stock compensation, one-time and non-recurring litigation expenses, amortization of debt discount and issuance costs, restructuring, and related tax impacts of those items. A reconciliation of GAAP and non-GAAP presentation is provided in our press release issued earlier today. Now looking at results of the full year of Fiscal 22. Total revenue was a record $143.9 million and increased of 20% year-over-year on strong growth in the deposit business. That grew 14% and the growth of our identity product line that grew 31% over Fiscal 21. Software and hardware revenue was $72.9 million, up 21% over the prior year, due primarily to the growth in mobile deposits and our check fraud defendant product lines, as well as the growth in IVR&V. As a result, our gross margin increased 200 basis points from 96% in fiscal 21 to 98% in fiscal 22. Services and other revenue was $71 million for fiscal 22, an increase of 19% over $59.7 million in fiscal 21. This increase is due primarily to growth in transactional staff revenue, which increased 25% to $50.3 million. Growth margin on services and other revenue was 74% for the year, compared to 80% for the comparable period in fiscal 21. For our four-year fiscal 22, deposits revenue increased 14% to $85.8 million, driven primarily by continued adoption of mobile deposits and check fraud dependent product lines. Identity verification revenue increased 31% to $58.1 million, driven by 25% growth in transactional revenue, SaaS revenue, and inclusion of additional SaaS revenue from acquisition of Hulu. Total gap operating expenses for fiscal 22 were $132.6 million, an increase of 24% compared to total operating expenses of $106.5 million in fiscal 21. This increase is due to additional investments made throughout the year to fuel up growth in the identity business and additional costs associated with the acquisition of IDR&D and the inclusion of additional headcount and expenses from the acquisition of REIA. GAAP net income for fiscal 22 was $3 million or $0.07 per share compared to GAAP net income of $8 million or $0.18 per share for fiscal 21. Non-GAAP net income increased 16% for the year to $39.6 million or $0.87 per share compared to non-GAAP net income of $34.2 million or $0.76 per share in fiscal 21. Again, please refer to the reconciliation of GAAP to non-GAAP presentation and operations. Fully diluted share count for fiscal 22 was $45.8 million for both GAAP and non-GAAP ETFs. Now turning to the balance sheet. We generated $10.3 million in cash flow from operations during the quarter and $26.4 million for the full year, bringing our total cash and investments to $101 million as of September 30, 2022. As noted recently, we continue to generate meaningful cash flow from operations. Our cash and investments at the end of March 31, 2023 increased by $13.5 million to $114.5 million. Moving on to guidance, we are reiterating the fiscal 2023 guidance we provided earlier this month. We expect revenues for the fiscal year ending September 30, 2023 to be in the range of $162 to $165 million, an increase of approximately 14% year-over-year from the midpoint of the guidance range. In addition, MyTech expects its full-year fiscal 2023 non-GAAP operating margins to be in the range of 29.5% to 30.5%. In closing, we are pleased with our results, which included record revenue for fiscal 2022, as well as record non-GAAP net income. We look forward to continuing to deliver industry-leading fraud prevention identity service to our valued global customers. Operator, that concludes our prepared remarks. Please open the line for questions.

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 is from Mike Grondahl with Northland Securities. Please go ahead.

Hey guys. In both mobile check and mobile ID, could you talk a little bit about transaction activity and trends and pricing? Just trying to get a feel for volume and price trends in both areas.

For the period that we're talking about here at FY22, in both mobile deposit as well as mobile verify, excuse me, transaction volumes increased, right? So we continue to see increased transaction volumes from existing customers and then the addition of new customers for the identity verification. And for mobile check deposit, or yes, for mobile check deposit similarly, Although, as you know, Chad, Mike, that business can be a little lumpy in when customers reorder and when those orders actually hit and refill the tank. I think in the case of mobile deposit, we know that we've continuously tried to push, take price and be able to push price increases. We've been methodical about that. I don't think it's no surprise that mobile banking and increased usage of mobile check deposit. You're seeing the, you know, the other side of that, which is the increase of pricing.

Got it. And then are you breaking out the number of banks you have signed up for check fraud, different defender or the revenue in, in the fourth quarter of 22?

No, we're not. And you probably won't see us do that for a while. I mean, you, continuously, you know, increase the number of customers, but it's coming off a very small base. You know, we're watching some customers adopt and jump straight into the network and, you know, use the online offering. Some are starting with a small on-premise implementation to, you know, kind of get their arms wrapped around it. But I think, you know, We'll talk about it when we drop the cues as well. We continue to see just a big, big interest in that product. Pipelines are strong. We do testing with customers, pretty elaborate testing with customers, and we've got a number of those underway. I think, as we've talked before, Mike, just as check fraud has exploded in the course of the last 18 months. So this is a very big topic for retail banks.

Sure. Yeah, no. Hey, and we're just, you know, we're trying to track it. So the number of banks or revenue, I guess we'll keep bugging you. Lastly, what should our expectations be for the timing on the 10K and then December and March?

Yes, Mike. So I think, you know, we've released our preliminary numbers now. We'll follow it up with a 10K with the next, week to 10 days. We're talking about weeks. We just need to make sure that we get everything buttoned out, but we felt comfortable releasing our numbers today to you guys. In terms of the queue, that process will continue once the K is filed, and we feel that at the few weeks. I can't be more precise than that at this point, but it's weeks, not months. We'll follow it up and The idea for us, you know, our expectation is to start becoming current on our filings, you know, showing off to that in its entirety, including Q3. So that's the expectation right now. I can't be more precise on the quarterly numbers as of today.

But we are looking forward to getting back on the regular schedule.

Sounds good. Sounds good. Hey, thanks, guys.

You got a mic? The next question is from Jake Roberge with William Blair. Please go ahead.

Hey, thanks for taking my questions. Max, could you just talk about how the macro is impacting each of your business units more specifically? From your comments, it seems like ID verification may be impacted a little bit more than mobile deposit, but would love to hear kind of the puts and takes that you're seeing in each business as it relates to the macro.

Yeah, so I don't think, you know, in the timeline that we're talking about here, FY22 in September and a quarter, you know, there's probably not a lot to talk about from the macro impact. A little bit on the identity, you know, we had a very relative to our competitors in the identity space. We had a very little exposure to, you know, crypto. And it was that June of 2022, July, and then kind of the crypto winter that followed from there. We had a handful of crypto customers. We watched them retrace pretty hard, but nothing worth pointing out. Since then, when we get into the queues, definitely the world has changed. In some regards, we just talked about CheckRod Defender and all the things that are happening with CheckRod. I think that's been a positive on our business. On the identity business, if you're an interest sensitive business like, you know, mortgage refinancing or VLOX and things like that, you know, we've seen this be tough on those businesses. So more to come as we drop those cues, though, Jake.

Okay, helpful. And then just wanted to touch on generative AI. It seems to me like there could be some secular tailwinds around AI and how that could impact the fraud and identity universe. but would love to get your thoughts on that and then how you could plan to integrate the technology into your core platform.

Sure. And, you know, so much ink has been spilled on, on Gen AI. Um, I want to be, you know, I want to be mindful that I don't know that I have a lot to add for generally. It's clearly going to be transformative. Um, in our own business, we see it through two lenses. The first is, you know, we're being able to do using, um, Using the technology, I mean, we've got a very long and robust history with machine learning and AI. So this is just built on top of, you know, a very deep base of that knowledge and experience our engineers and computer scientists have. So our ability to use that in model building, model testing, and that's already underway. I mean, we see it with our biometrics teams. We're seeing it with the core identity teams around documents, obviously the faces, the voices. So in that regard, I think there's some very interesting things for us to increase pace, velocity of development, new ideas that can be tested much more cheaply or much more quickly. That's for us internally and things that then result in customer-facing offerings. I think the bigger challenge just generally, not just for banks, but for anybody out there, right, is these same tools can be used as weapons and we anticipate we're already seeing, you know, the deep fakes and the kind of things that can happen with voices and faces and every other, you know, image and video, all the stuff that you're seeing every day, you know, that can be applied towards trying to create identity fraud with banks, with other financial institutions. And so I think it just puts a bigger focus and more meaning on, you know, having the right defenses and partnering with the right organization like my bank.

Yeah, yeah, I agree. Very, very helpful on that and interesting opportunity as we move forward. And then if I could just sneak one more in. I understand you've been working a lot with your consultants and auditors, but what has your dialogue with the NASDAQ looked like throughout the process and what type of feedback have they been providing you on regaining compliance just over the past few weeks since we passed over that June 12 timeline?

Sure. Well, you know, Jake, obviously NASDAQ, the market that we sit on, the SEC is the regulator, and being current with the SEC is a requirement for the NASDAQ. So the NASDAQ has a very rigorous and structured process under which we're currently working. I think we're working in a very positive and constructive way with them, but we're late, right? And so we've brought in advisors, as you mentioned. At this point, We have high confidence based on the performance of our business, the fact that we're cash flow positive, we get cash in the banks, we continue to grow. There are no allegations of misconduct here. We have high confidence that we will regain that filing status. Ultimately, the NASDAQ is the ultimate arbiter of that. Working hard towards it every day.

Very helpful. Thank you. Thanks for taking my question. You're welcome.

The next question is from Stephanie Moore with Jefferies. Please go ahead.

Hi, good afternoon. Thanks for the update. I wanted to touch on your target for your ID segment and the target to turn a profit in 2024, the second half of 2024. Could you maybe talk a little bit about what you need to see for that target to be achieved what needs to happen maybe for that to happen earlier or on the flip side, you know, what could delay you from actually achieving this target would be helpful. Thanks.

Sure. Well, thanks for the question, Stephanie. And for those who maybe are a little newer to the story, you know, we've been working. We've got a very profitable unit with deposits, and, you know, we want to get our identity business to that as well. We've stated that by the end of fiscal 2024, we'd like to be able to get to break even. business, looked at in isolation, and we believe we're on path, but still the current intent here. The things that could make that happen sooner is the top line growth happening faster. The things that could maybe take longer is if we didn't get the top line that we're currently forecasting and that we're guiding to here in the current guidance. You know, when I kind of think about as we've laid those markers down and as we've worked to operate the business both in our budgeting and then day-to-day discipline of living those budgets, probably the biggest thing is, you know, the world's changed pretty considerably in the course of the last five quarters relative to just uncertainty in the macroeconomic circumstance. So I think that's probably the biggest, you know, unknown or biggest question mark.

Great. No, that's really helpful and appreciate it. And I know that the last time we spoke a couple weeks ago, I think you touched a little bit about maybe within the ID business, a slight shift in strategy where you're offering your customers more of an end-to-end platform, kind of managing their entire, you know, the life cycle. Could you maybe talk a little bit, you know, I'd love to hear, because I think that's a really interesting point, you know, if you could kind of speak to any, you know, cross-sell opportunities you think this opens up or pricing or why this is, you know, you've kind of come to terms that this is an incremental kind of right strategy, you know, versus maybe what you were originally thinking about as you were moving into ID space. And I'd love to hear kind of the opportunity there. Thanks.

Oh, sure. Thanks. Well, and I think this is, you know, this is not some sudden, you know, change or anything like that. I mean, we've been working towards this for the the acquisition of IDR&D from a world-leading biometrics capability and liveness, and then it was really the foundational associated with the WhoYou acquisition and capturing a platform and an easy-to-manage, no-code, low-code platform for orchestrating multiple signals, not just for onboarding new customers and opening new accounts, but those in-life, the lifecycle experiences use cases of persistent identity or knowing your customer and being able to do any laundering checks well after somebody signs up for a new account or a new card or something. So that's been the strategy here going back for years. I think we've been able to fine tune it as we go. That's where the market is. That's where the market's going. And I think we're very fortunate to have not just captured incredible capabilities, but the talent and the teams that go with that. And you'll see us continue to leverage that and continue to evolve that strategy so that it's, you know, beyond and, you know, not just beyond identity, but identity and fraud. And you're starting to see that with the first signals that we're getting as a result of our deposits business and being able to intersect our deposits business with Check Fraud Defender as a fraud signal with our identity business.

Great. Really appreciate the time. That's all for me. Thank you.

Thanks, Stephanie.

Again, if you have a question, please press star then 1. The next question is from Alan Klee with Maxim Group. Please go ahead.

Good afternoon. Can you give us some color on how you think about the relative growth rates of the deposits versus the identity business in fiscal 23?

Sure thing, Alan. We're probably not going to break the guidance down by line of business, but I'm happy to give you a sense of it. We've expected that, and I think we're on record, and it's been a while since we've talked to the record, but we're on record relative to the deposits with Check for a Defender and many of the new things that have been introduced that we see that business as being a high single-digit, low double-digit growth business. Obviously, we just... Talked about fiscal year 22 and 14% growth, so very much on the high end of that range. But I think we stand behind that. We anticipate that the traditional check business will slowly modulate relative to its growth. It'll continue to grow, just maybe it won't grow as fast as it did in 21, 22, and that'll be offset by the continued uptake of check for a defender. So that's on the deposit side. On the identity side, you know, We definitely see the market for identity being a little different, not just for us, but just the market itself being a little different today than it was a year, year and a half ago. But the idea that we can deliver high-teens growth in that business in FY23, I think that's a good number, maybe a good range to have in your mind.

Thank you. And when we look at operating expenses, it's How do you think about, to the extent that you're kind of positioned that you've already spent for some future growth, or do you think that this continues to kind of grow kind of in track with revenues?

Yeah, without getting into very specific to maybe what has something to add here, but, you know, as we get bigger, you know, with scale, we should be able to increase our leverage. We've done a lot to integrate. you know, both the IDRD and the Huyu teams, products, systems. So starting to get, you know, some of the synergies and starting to see that kind of make its way through P&L. But as we continue to grow the business, we expect that we're going to be able to take more and more of the bottom line and be able to expand operatively.

And just to kind of add a little bit, I think you see that in our guidance for 2023, like our operating, non-GAAP operating system, Margin guidance is 29.5 to 35, and on the high end, it is higher than where we ended 2022 at. And we're still, obviously, growing the business and consolidating and going through a consolidation of the business, and the synergies that will come from that, so they'll have to be included in it. But despite all of that, we're projecting slightly higher non-GAAP operating margins for a 20-minute shoot.

Thank you. Last question is, do you think once you've caught up on your financials that you might be able to release your Qs and Ks on the same day that you report your earnings?

At this point, I wouldn't set that expectation. I think we will do that sequentially, and that's just the way the auditor process will work. They'll complete all their work for fiscal 2022, and then they'll move to 2023. So we'll do that sequentially, as I said earlier on the call. You know, we'll be talking about week 10 days for the K, and then weeks after that for the Qs. We'll allow the auditors to finish their work and complete it, and then we'll release those. And with the expectations that we get back to the normal cadence, you know, starting in Q3 and thereafter.

Okay. Thank you very much.

Thanks, Alan.

This concludes our question and answer session. I would like to turn the conference back over to Todd Curley for any closing remarks.

Thank you, Operator, and thank you, everyone, for joining us today. We look forward to updating you again next quarter. Our call has concluded. Have a wonderful day.

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.