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spk_0: that afternoon welcome the knock and eighth fourth quarter and full year twenty twenty two earning conference call at that time all participants are only mode after the speakers presentation there will be a question answer session as a reminder this call have been recorded join us today for noggin or jonathan huber men president the oh and shari are ramadi feel oh and fi fo before we begin noggin management team would like to remind everyone that statements made and or answers that may be given to questions asked on this call our or may contain forward looking statements that are subject to risks and uncertainties related to future events and or the future financial or business performance of noggin actual results could differ materially from those anticipated in the forward looking statements for the can statements include for not limited to knock and expectations are predictions of financial and this is performance and conditions the development an adoption and like and platform and cost reduction measures a goal of competitive and industry outlook for looking statements are subject to risks uncertainties and assumption and they are not guarantees of performance noggin is not under any obligation to and expressly disclaims any obligation to update alter otherwise revive any forward looking statements whether it's result of new information future events or otherwise except as required by law in addition a description of some of the risks and uncertainties that could cause actual results to differ materially from those indicated by the forward looking statements on the call can be found in the risk factor section of our full year report on the form ten pay for the quarter ended december thirty first twenty twenty two to be filed with the fcc layer today and in our other filings with as you see on today today's called we will also refer to certain non gaap measures including non gaap revenue and adjusted ebitda that we view as important in assessing the performance of our business these metrics exclude certain items as discussed and the release under the heading non gaap financial measures therefore these measures should not be considered an ice solution or as an alternative to operating income net income cash flows from operations or any other profitability liquidity or performance measures drive in accordance with get you should be aware that the company of presentation of these measures may not be comparable to similarly titled measures you by other companies a reconciliation of each non got measure to the comparable get measure is available in our early release and are full year report on form can pay for the quarter ended december thirty first twenty twenty two not an investor relations with page at www that i are that noggin dot com finally i would like to remind everyone that a webcast replay of this call will be available via the lake provide into the of earnings release as well as on our website at www dot noggin dot com now i like from a call over to noggin and theo jonathan huber been
spk_1: thank you amy
spk_2: welcome everyone thank you for joining us this afternoon on a on these call to begin today's discussion i like to provide a quick overview of our business and review last years i was before time the call over towards siloed cfl sharia ramadi to scuttle financial results for the quarter and year after that off your suppose remarks be for oh bring the call for questions for those of you who may be new to or story and noggin we believe that as retail ecommerce continues to grow and become more sophisticated there is a large market opportunity to help merchants funny that ecommerce sophistication politics expertise capital and personnel to measure law noggin commerce as a service platform for advises need and a few ways first noggin provides a headless and and technology platform that merchants can plugged into his they're paid to integrate mobile technologies second noggin delivers advanced capabilities they're generally too complex and costly for many bread the by build a man's on their own you capabilities a beautiful customer data platform social commerce abilities and ai integrations third night include leading edge aren't the and innovation as a service it why from never required to spit expand resources on their ecommerce operations further noggin eliminates the need to re platform because as he built a new features and tools your immediately available to points and lastly noggin and identifiable incremental performance for customers based on insights from more proprietary data asset insights unavailable to most outside of the noggin platform lot of bills model includes taking a percentage of brand he calmer sales conducted through our cast platform which your complete alarm with ourselves our clients our groceries rooted in three key pillars develop a good seriously advance or innovative and scale will commerce as a service platform decrease cells a marketing efforts to drive our pipeline and expand a client base into new markets and products throughout ecommerce we could see you make progress and all these fans as look to the rest of twenty twenty three all together as you grow and confused skill or product and service offerings are quite ecommerce operations can scale in parallel or modern approach to commerce allows brands and sellers to grow more probably and without upfront costs while still focusing their efforts on their core business if of the resource intensive nuances of be calmer oh no like to take a few may reflect our twenty twenties fiscal year and many ways this year was transformational for business after quit a business combination to enter the public markets in august we had a public company and industry expertise or measure team and board of directors the best position get to execute on our growth strategy also a major driver her decision to go public what to enhance our sales engine and with that mind we made significant investment last year to bolster our salesforce these efforts have led to strong customer acquisition momentum as well as a robot pipeline of additional brands that are interested loggins capabilities expand your quite a for me is important part of our growth strategy and we look for to further driving ourselves engine and have any free we could say you have vastly hundred deaths and class intelligent commerce platform and made significant upgrade to our software and twenty twenty two fever efforts culminated in a lot of the one of and tells and commerce and else as much the month which builds on a previous version offers powerful new features including first of it's kind a i power customer segmentation algorithmic merchandising and automated campaign optimization our goals remain to provide our clients with accept the cutting edge enterprise e commerce capabilities and weeks back to continue investing in our technology suite moving forward another area of focus thrust in the back half of twenty twenty two was or comprehensive cost reduction and performance improvement initiative while we work opposition are cass business for growth and margin expansion probable operations made a crucial part of our strategy these initiatives or are already showing cause a he results including adjusted ebitda loss reduction in the fourth quarter as we look to the rest of twenty twenty three weeks back to bounce at these efforts with our investment into naugatuck nalgene and sales engine i believe that were on a path to profitable growth in total we expect that our efforts and twenty twenty two will allow us effectively execute on a great regime moving for especially the current economic environment rather searching for ways to reduce costs while driving improve result our platform is uniquely positioned help our customers do just that with noggin hyper for as and cost effectiveness or never usual exclusive choices were kovner technology or team and our strategy and look for to capitalize on sra momentum over the rest of pointing twenty three with that i'll turn to call over to our ceo and cfl sharia ramadi to discuss our fourth quarter and for your financial results in greater detail sharia thank you john turning out our financial results for the fourth quarter for your i did summer thirty first twenty twenty two as noted last quarter or not revenue includes product related revenue that stems from two previous feels that involved sales will lead the first party inventory purchases and that inventory of sold generator
spk_3: revenue appears with in net revenue in our gap with
spk_2: or non gaap revenue however is revenue generated by the core commerce as a service platform and associated services we typically view non gaap revenue has a more accurate indicator of the business and expect our govt and non gaap revenues to converge overtime gotten out revenue in the fourth quarter of twenty twenty two decrease thirty nine percent to twenty seven point nine million from forty six point one million in the fourth quarter of two thousand twenty one the decrease the net revenue was primarily due to a decrease in product got enough revenue for the twenty twenty two four year degree seven percent to ninety four point five million from one at one point three million and the comparable year period
spk_3: the decrease in that revenue was primarily due to a decrease in that product revenue during the year partially offset by an increase in revenue college parts for the fourth quarter of twenty twenty two not got revenue a naga measurement of operating performance decrease sixteen percent to twenty two point three million from twenty six point five million in the comparable year ago period the decrease a non gaap revenue was primarily due to a decrease in cash and murky weapon
spk_2: non gaap revenue over the full year of twenty twenty two increase three percent to seventy two point four million from seventy point zero million in the comparable year ago period the increase in on gap revenue was primarily due to an increase in cash operating loss in the fourth quarter agreed that law point six million compared to an operating loss of zero point nine million and the comparable year ago period and operating losses for the twenty twenty two full year increased to forty point three million compared with an operating loss of six point three million the comparable year ago period
spk_3: the increase in operating loss was primarily due to supply chain issues experienced at the end of twenty twenty one which impacted our performance in the first half of twenty twenty two along with a one time right now a bad debt and royalty expense the expected impact of the company's cost and performance improvement program for the full year twenty twenty three isn't a speech to disparity between fifteen million and twenty million dollars and management expect to have the majority of initially identified initiative complete by the end of the first quarter of twenty four need rape and further we expect the active of it is will have achieved are full run rate back before the end of que to twenty twenty three
spk_2: moving to our outlook for twenty twenty three as of today are based on our progress year to date we expect to drive existing customer at on sale as well as new customer agreement both of which was positive impact rabbit additionally based on the initial results for cost reduction and performance improvement program we expect
spk_3: to approve of operational efficiency increased adjusted even dark and generate significantly increased operating leverage to the future
spk_2: as we execute against our strategy over the course of this year we expect to drive approved result and look forward to providing incremental updates god for that complete my summary
spk_3: i now like joined the call back over to john
spk_2: thanks share here noggin remain excited about the future and confident in our ability to execute against our growth strategy moving for our traditional commerce as a service business a strong we believe that with are expanding pipeline of business across a myriad of industries interest are solutions we are positioned well to properly growth over the come and quarters operator with that he doesn't call for tonight
spk_0: thank you at the time will open a line for questions the company request that each participant limit their comments can one question and one follow up to ask a question please press start one one on your telephone and wait for your name to be announced to withdraw your question please press star one one again please stand by will be compile two and a roster and again as a reminder to ask a question please press star one one on your telephone one moment while we compiled cuny roster and our first question is from some azzolini which are free throw line is open
spk_2: i their dates for day like question so many firsts just john in we're we're pretty far along in the first quarter and curious what you seen maybe from a matter of perspective whether he he was the dakota aggregate customer behavior or what you're seeing a of her not specifically in that either at all question your have so many thousand and two different ways her first let me tell that new business on new places cocaine is accelerating dramatically i expect between assigning that we had last week and what we expect to have again no guarantee we're going again about that were expectancy between last week in the and april we should sign up as many cut new customers as we didn't all of twenty twenty two so i think the the bookings momentum as we would have alluded to in that and they're prepared remarks the is really there and accelerating a how they were in advance discussions where why the top ten business process consultants in the world about partnering with them on both implementation as well as fail to go for it again no guarantee really and sign but certainly won't advance discussions hopefully a well so we're very optimistic about the i blocked by the business in terms of cause for dynamic as you know your the for the quarter is the seasonally weakest quarter from i get as close as you for to season the strongest for customer demand and ya an ecommerce the so it's kinda hard to the baseline where the years go up based on t one because it is a seasonally we guess yeah it certainly is a lot as you point out you know is a lot of uncertainty market
spk_4: but i stack
spk_2: that the weakness there may show up we don't have a will and consumer demands of should be somewhat if not completely off that all depends when we get a bookings by the new bookies momentum as as you know the bookings momentum and we find someone up in december really see missing none of that revenue this year bush's the all of it next year so it as young as due to timing for this year but certain way and i look forward as as we move forward he wanted not just twenty three between twenty four i see a very healthy growth ah thanks to to the bookings assuming a shows up again no guarantees that the initial dick asians are a very positive
spk_5: then if your question
spk_3: yeah maybe just like a i guess more specifically to let you seen so far are looking for on are you seeing growth in your energy your the or the air date to the first quarter just oh one of the guardrail the how should we have you think about what your have a shorter term effect kitchens are not for the
spk_6: doesn't get any ah we're almost there one you
spk_3: sure you want to dress that the shirt i think we're i we've also made some decisions as we've taken out a fresh look at the business and and thought about some of our customers there were some customers wear your we are we prioritize profitability
spk_2: over revenue growth the few hours are certain cases in which we have of customers were
spk_3: achieving increase your over your palms one of com ah a negative impact of profitability and were reductions in those growth rates are maintaining year over year for those customers or even flight five year over year for those customers was a prudent to fish or from a profitability a long term perspective that's the taxi have taken so are the i think we we didn't expect we didn't see anything we didn't expect to say ah and the and the first quarter from our and overall perspective but we didn't make some international new decisions around how we were does not brands and i are
spk_2: actions and engagements with our customers to why it has to be mindful of profitability versus versus simply sales and all costs and in one thing to keep in mind some adina we ever a fairly concentrates had a customers as you know yeah yeah yeah a few that are somewhat no uniquely positioned with put that way and sell and heart jack your base that one or two of those how they all industry goes if one customer of ours your has a mismatch between demand and what what they have in stock yeah that that isn't it is a somewhat unique take some issue not one that can be projecting across all of them
spk_3: or even big entirety of the year absolutely
spk_6: i understand in a flash flashing for me as you think about the ah debt that restructuring or that the cost any initiative i've we've actually completed that is there is there more to go and is a consider asia maybe than taking additional steps are just there where we add in terms of had gotten and cops and of initiative
spk_2: are herself we ah i think that we executed the majority of those items that were ah labor related are in in the queue for a period and leaked you for in and throughout she and idea the option to that we talk were continue
spk_3: you benefit from efficiencies in an area switches are distribution operations which not only lower cost roger but actually provide our customers with even more accelerated shipments which as you know and in this businesses is is quite key on from the afford we took a variety of structural cost reduction in areas where we are were able to achieve efficiencies that manifested itself in areas such as warehouse leases were able to concentrate or footprint of better utilize our existing facilities are even while we took our new customers and growth up without meeting those those previous ah least facilities the manifestation of those cost reductions which ah which started to the the several one hundred thousand dollars per month of incremental ah our our our are in process now from have occurred very recently others will continue to materialize over the course of the next ninety days bought all of that of are expected to be a full run rate by the end of of cute you know will we find ah additional opportunity over the course of our daily operations absolutely we're always looking for areas where we can drive further efficiency ah that is especially in combination with efficiency the trash performance improvements our core business
spk_2: not that way we were thinking about running the business just as a as as a fundamental flaws be a methodology so expect to see that were very thoughtful about both the areas of savings and and big smart about those and also ah very judicious and our a rehman in our investments
spk_6: great you game of adults
spk_7: thank you for night
spk_0: at the time that concludes our question the answer session and i like the call back over to mister he remained for his closing remarks
spk_2: or i will thank you everybody i appreciate you joining and look for to talking again in the not too distant future
spk_0: thank you for joining us today for non and fourth quarter and four year twenty twenty two earn a conference call you may now disconnect you good afternoon welcome the not and ain't fourth quarter and full year twenty twenty two earnings conference call at this time operative since arnold only mode after the speakers presentation there will be a question answer session as a reminder this call have been recorded join us today for noggin or jonathan huber men presidency oh and shari are ramadi feel oh and see fo before we begin noggin management team would like to remind everyone that statements made and or answers that may be given to questions asked on this call our or make and came forward looking statements that are subject to risks and uncertainties related to future events and or the future financial or business performance of noggin actual results could differ materially from those anticipated in the forward looking statements for the can statements include the not limited to knock and expectations are predictions of by national and this is performance and conditions the development an adoption and and platform and cost reduction measures a goal of competitive and industry outlook for looking statements are subject to risks uncertainties and assumption and they are not guarantees of performance noggin is not under any obligation to and expressly disclaims any obligation to update alter otherwise revive any forward looking statements whether it's result of new information future events or of or wife except as required by law in addition a description of some of the risks and uncertainties that could cause actual results to differ materially from those indicated by the forward looking statements on this call can be found in the risk factor section of our full year report on the form ten k for the quarter ended december thirty first twenty twenty two to be filed with the fcc layer today and in our other filings with the fcc onto the today's called we will also refer to certain non gaap measures including non gaap revenue and adjusted ebitda that we view as important in assessing the performance of our business these metrics exclude certain items or as discussed and the release under the heading non gaap financial measures therefore these measures should not be considered in isolation or as an alternative to operating income net income cash flows from operations or any other profitability liquidity or performance measures drive in accordance with get you should be aware that the company is presentation of these measures may not be comparable to similarly titled measures used by other companies a reconciliation of each non got measure to the comparable get measure is available in our early relief and are full year report on form can pay for the quarter ended december thirty first twenty twenty two a noggin an investor relations with page at www the i are that noggin dot com
spk_1: finally i would like to remind everyone that a webcast replay of this call will be available via the lake provide into the of earnings release as well as on our website at www dot noggin dot com now i like from the call over to noggin theo jonathan huber been
spk_2: thank you amy welcome everyone thank you for joining us this afternoon on a on these call begin today's discussion i like to provide a quick overview of our business and review last years silence before trying to call over tor siloed cfl sharia law mahdi to scuttle financial results for the quarter and year after that off your suppose remarks before opening the call for questions for those of you who may be new or story and noggin we believe that as retail ecommerce continues to grow and become more sophisticated there is a large market opportunity to help merchants funny that ecommerce sophistication politics expertise capital and personnel to measure law loggins commerce as a service platform for sizes need and a few ways first noggin provides a headless and and technology platform that merchants can plugged into his they're paid to integrate mobile technologies second noggin delivers advanced capabilities they're generally too complex and costly for many bread the by build a man's on their own you capabilities a beautiful customer data platform social commerce abilities and ai integrations the night include leading edge aren't the and innovation as a service to clients are never quite expect expand resources and their ecommerce operations further noggin eliminates the need to re platform because as we build these new features and tools your immediately available to our clients and lastly noggin and identifiable incremental performance for our customers based on insights from our proprietary data asset insights unavailable to most outside of the noggin platform love your business model includes taking a percentage of brand ecommerce sales conducted through our cast platform which is your complete alignment with ourselves and our clients are gross raised rooted in three key pillars develop a good seriously advance or innovative and scaled or commerce as a service platform increase sales and marketing efforts to drive our pipeline and expand our client base into new markets and products throughout ecommerce we could see you make progress and all these fans as we look to the rest of twenty twenty three altogether as a girl and kitties geller product and service offerings are quite ecommerce operations to scale in parallel or modern approach to commerce allows brands and sellers to grow more profitably and without upfront costs of to focusing their efforts on their core business if of the resource intensive nuances of ecommerce i know like to take a few minutes reflect our twenty twenties fiscal year in many ways this year was transformational for a business after cleaner a business combination to enter the public markets in august had a public company and industry expertise or measure team and board of directors to best position i get to execute on our growth strategy also a major driver her decision to go public with to enhance our sales engine and with that mind we made significant investments last year to bolster our salesforce these efforts have led to strong customer acquisition momentum as well as a robust pipeline of additional brands that are interested noggin capabilities expand your client base for me to important part of our growth strategy and we look for to further driving or cells engine and on three we could see you have vastly hundred deaths in class intelligent commerce platform and made significant upgrade to our software and twenty twenty two give either efforts culminated in the launch of v one of intelligent commerce and ausmus months that month which build on a previous version offers powerful new features including first of it's kind a ip our customer segmentation algorithmic merchandising and automated campaign optimization our goals remain to provide our clients with accept the cutting edge enterprise e commerce capabilities and we expect to can keep investing in our technology suite moving forward another area of focus thrust in the back half of twenty twenty two was a comprehensive cost reduction and performance improvement initiative while we work a are cass business for growth and margin expansion probable operations made a crucial part of our strategy these initiatives are already showing cause results including adjusted even got lost reduction in the fourth quarter as we look to the rest of twenty twenty three weeks back to douse at these efforts were their investment into naga technology and sales engine i believe that were on a path to profitable growth in total we expect that our efforts and twenty twenty two will allow us effectively execute on a great strategy moving for especially the current economic environment brands are searching for ways to reduce costs while driving improve result in our platform is uniquely positioned help our customers do just that with noggin type of form is and cost effectiveness or never usually exclusive choices are company or technology or team and our strategy and look for to capitalize on sra momentum over the rest of twenty twenty three with that i'll turn the call over to our ceo and cfl sharia ramadi to discuss our fourth quarter and for your financial results in great detail sharia thank you john turning out our financial results for the fourth quarter for your did december thirty first twenty twenty two as noted last quarter or not revenue include product related revenue that stems from two previous feels that involved sales will a to the first party inventory purchases and that inventory of sold generated revenue appear as with enough revenue in our gap was are non gaap revenue however is revenue generated by the core commerce as a service platform and associated services we typically view non gaap revenue had a more accurate indicator of the business and expect our govt and non gaap revenues to converge overtime gaap net revenue in the fourth quarter of twenty twenty two decrease thirty nine percent to twenty seven point nine million from forty six point one million in the fourth quarter of two thousand twenty one the decrease the net revenue was primarily due to a decrease in product
spk_3: gaap net revenue for the twenty twenty two four year degree seven percent to ninety four point five million from one at one point three million and the comparable year period the decrease in net revenue was primarily due to a decrease in that product revenue during the year partially offset by an increase in net revenue from college parts
spk_2: for the fourth quarter of twenty twenty two non gap revenue a non gaap measurement of operating performance decrease sixteen percent to twenty two point three million from twenty six point five million in the comparable year ago period the decrease a non gaap revenue was primarily due to a decrease in cash and murky rabbit dog gap revenue over the full year of twenty twenty two increase three percent to seventy two point four million from seventy point zero million in the comparably year ago period the increase in on gap revenue was primarily due to an increase in casper
spk_3: operating loss from the fourth quarter agreed that law point six million compared to an operating loss of zero point nine million and a comparable year ago period and operating losses for the twenty twenty two full year increased to forty point three million compared with an operating loss of six point three million apparently year ago period the increase in operating loss was primarily due supply chain issues experienced at the end of twenty twenty one which impacted our performance
spk_2: in the first half of twenty twenty two along with a one time right now a bad that and royalty expense
spk_3: the expected impact of the company's cost and performance improvement program for the full year twenty twenty three or the disparity between fifteen million and twenty million dollars in management expect to have the majority of initially identified initiative complete by the end of the first quarter of twenty twenty rape and further we expect the lucky
spk_2: nobody's will have achieved are full run rate impact before the end of que to twenty twenty three
spk_3: moving to our outlook for twenty twenty three as of today are based on our progress year to date we expect to drive existing customer out on failed as well as new customer agreements both of which one positive impact rabbit additionally based on the initial results for cost reduction and performance improvement program which back
spk_2: to approve of operational efficiency increase the just leave it off and generate significantly increased operating leverage in the future
spk_8: as we execute against our strategy over the course of this year we expect to drive approved result and look forward to providing incremental updates for
spk_3: that complete my summary
spk_2: i knowledge or the call back over to john they share here it noggin remain excited about the future and coffee in our ability to execute against or growth strategy moving for our traditional commerce as a service business is strong we believe that with are expanding pipeline of business across a myriad of industries interesting are solutions we are positioned well to properly growth over the
spk_0: i'm in quarters operator with that to the up in a call for tonight thank you at the time will open a line for questions the company request that each participant limit their comments to one question and one father up to ask a question please press star one one on your telephone and wait for your name to be announced to withdraw your question please press star one one ago then please stand by will be compiled q and a roster and again as a reminder to ask a question please press star one one on your telephone one moment while we compiled a roster
spk_6: and first question is from the mods and lonnie which are free throw line is open
spk_2: i their dates for gave you a question so many firsts just john yeah we're we're pretty far along in the first quarter and curious what you've seen maybe from a matter of perspective whether you eat us the dakota aggregate customer behavior or what you're seeing a of fernando specifically in that either op question care have so many thousand and two different ways have first let me tell that new business on new places cocaine is accelerating dramatically i expect between signings that we had last week the what we expect to have again no guarantee we're going to get about that were expectancy between last week in the and april we should sign up as many cut new customers as we get an all of twenty twenty two so i think the the bookings momentum as we put have alluded to in there and they're prepared remarks it really there and accelerating a target were in advance discussions were why the top ten business process consultants in the world on about partnering with them i and both implementation as well as fail to go for it again no guarantee really good fine but certainly weren't advance discussions hopefully a well so we're very optimistic about the i watched by the business in terms of cause for dynamic as you know you're the first quarter is the seasonally weakest quarter from the idea as close as you for to seasonally strongest for customer demand and ya an ecommerce ah so it's kinda hard the the baseline was a years going up based on t one because it is a seasonally we guess yeah it certainly is a lot as you point out you know there's a lot of uncertainty of market by ice stack that the weakness that may show up we don't have a will and consumer demands of should be somewhat if not completely up that all depends when we get our bookings by the new book is momentum as as you know the bookings momentum of we find someone up in december really see missing none of the revenue this year bush's the all of it next year so it as young as five it's due to timing for this year but certain way i look forward your as as we move forward wanted not just wait way through between twenty four i see a very healthy growth ah
spk_5: takes to to the bookings assuming a shows up again no guarantee but the initials occasions or a very positive
spk_3: then if your question
spk_6: yeah maybe if i'd i guess more specifically to what you seen so far are looking for on are you seeing growth in your in your gm or of the to the first quarter just one of the guardrail the how should we have you think about what your have a shorter term effect kitchens are marked for
spk_9: the business get any ah we're almost there one you
spk_3: sure you want to dress that the shirt i think we're i
spk_8: we've also made some decisions as we've taken out a fresh look at the business and and thought about some of our customers there were some customers were the we are we prioritize profitability ah over revenue growth if you are other certain cases in which we
spk_3: i have a customers were achieving increase your over your palms one of com ah a negative impact to profitability and were reductions in those growth rates are maintaining year over year for those customers or even flight the clive year over year for those customers was a prudent decision
spk_2: from a profitability a long term perspective that's the tax we've taken so are the i think we we didn't expect we didn't see anything we didn't expect to see ah and the in the first quarter from our and overall perspective but we didn't make some international nuance decisions around how we were da da brands in iraq actions and engagements with our customers to i have to be mindful of profitability versus versus simply sales at all costs and in one thing to give him my some odd you know we ever a fairly can't trade center customers as you know yeah yeah yeah a few that are somewhat no uniquely positioned let's put that way and sell and heart jacked your base one or two of those how the oil industry goes
spk_3: if one customer of ours your has a mismatch between demand and what what they have in stock yeah that that isn't it is a somewhat unique so issue not one that can be projected across all of them
spk_6: or even the entirety of the year absolutely understand in a flash flashing for made just as you think about the ah that that restructuring or that the cost saving initiative i've we've actually completed that is there is there more to go and is a consideration maybe than any additional that are just there were we
spk_2: add in terms of had gotten and cop and initiative
spk_3: are herself we've ah i think the we executed the majority of those items that were ah labor related are in in the queue for period and lake you for in and throughout she wine and idea the option that we talk were a continue you benefit from efficiencies in and which is art distribution operations which not only lower our our structure but actually provide our customers with even more accelerated shipments which as you know and in this businesses is is quite key ah from the afford we took a variety of structural cost reduction and areas where we are were able to achieve efficiencies not manifested itself in areas such as warehouse leases were able to concentrate or footprint of better utilize our existing facilities are even while we took our new customers and grow up without meeting those those previous lee ah least facilities the manifestation of those cost reductions which ah
spk_2: which wanted to the the summer one hundred thousand dollars per month of incremental ah are are are are in process now from have occurred and very recently others will continue to materialize over the course of the next ninety days bought all of them are expected to be a full run rate by the end of of to to novel we find ah additional opportunities over the course of our daily operations absolutely were always looking for areas where we can drive further efficiency on that is especially in combination with efficiency the trash performance improvements our core business
spk_6: not that way we're we're thinking about running the business just as a as as a fundamental flaws be a methodology so expect to see that were very thoughtful about both areas of savings and and big smart about those and also ah very judicious and are a white ribbon in our investments
spk_7: great you game of adults
spk_0: thank you for not
spk_2: at the time that concludes our question the answer session and i like can call back over to mister he remember his closing remarks
spk_0: or i will thank you everybody i appreciate you joining and look for to talking again in the not too distant future
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