Teads Holding Co.

Ladies and gentlemen, and welcome to TEAD's second quarter 2025 earnings conference call. At this time, all participants are in the listen-only mode. Question and answer sessions follow the formal presentation. As a reminder, this conference is being recorded. I would like to turn the call over to TEAD's investor relations. Please go ahead.

Good morning, and thank you for joining us on today's conference call to discuss TEAD's second quarter 2025 results. Joining me on the call today, we have David Kostman and Jason Kiliat, the CEO and CFO of Teads. During this conference call, management will make forward-looking statements based on current expectations and assumptions, including statements regarding our business outlook and prospects. These statements are subject to risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. These risk factors are discussed in detail in our Form 10-K, filed for the year ended December 31st, 2024, as updated in our subsequent reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the call's original date, and we do not undertake any duty to update any such statements. Today's presentation also includes references to non-GAAP financial measures. you should refer to the information contained in the company's order earnings release for definitional information and reconciliations of non-GAAP measures for the comparable GAAP financial measures. Our earnings release can be found on our IR website, investors.peace.com, under News and Events. With that, let me turn the call over to David.

Thank you, Maria. Good morning, everyone. Thank you for joining us as we report on our first full quarter as a combined company. Before diving into the details, I want to make a few points. We have continued to see excellent customer response from advertisers, agencies, and media owners globally to the new Teams value proposition, a true end-to-end platform delivering outcomes across branding and performance. In Q2, we grew EBITDA sequentially in a meaningful way, generating strong cash flow. At the same time, we are experiencing a slower pace in the return to growth than we had anticipated post-merger, mostly attributed to organizational issues we identified during the quarter. We are executing on the integration decisively, making critical organizational changes that we believe positions us for success in the second half of the year and beyond. I will elaborate on each of these points. Turning to the quarter. On the financial front, we delivered results within our guidance for positive sequential progress and a deceleration in the year-over-year decline rates. As it relates to the post-merger integration, we successfully launched a new case grant and value proposition globally. Organizationally, our initial focus was on allowing the merge teams to settle in, creating alignment and clarity on roles and responsibilities. However, several learnings from the first few months resulted in us identifying necessary structural changes to improve the effectiveness of the sales organization. We've taken those lessons, which are not uncommon when you merge companies of similar size, responded quickly, and accelerated some key changes. In early July, we consolidated our European business under new managing director, Alex Stavitsch, who ran the legacy teams, Central European and Latam businesses, to drive better operations and effectiveness in our key markets. We structured the USAID leadership, ensuring a focused mandate for the US team, our largest market, removing decision-making bottlenecks, enabling the team to focus on the customers, and instilling a stronger operational rigor and focus on business KPIs. We created a global CRO forum, led by me, that includes all our regional leads, our strategic account group, global agencies, and our brand direct response. Jeremy Arbiti, our co-president, continues to steer global strategy agencies, partnerships, and corporate development, while Detran Quesada, our co-president, drives regional leadership across Europe and JPEG. We also refined our go-to-market sales approach, including changes in packaging and pricing, and in our cross-sell strategy. simplifying the narrative and pitch of our sales team. We expect that a combination of these changes will lead to improved execution in the second half of the year and into 2026. We are equally focused on maintaining financial discipline. On cost synergies, we remain on track to deliver $40 million in cost savings for 2025, with a full-year runway savings of $60 million expected in 2026. We remain confident in our ability to deliver positive free cash flow for the full year and recently took the step of repurchasing the portion of our outstanding debt, reinforcing our commitment to efficient capital allocation. Let me turn to the business, starting with the demand side. The U.S. market continues to be the main headwind on our business, with a year-over-year decline of more than 70%. We are now seeing early signs of positive impact from some of the changes I highlighted. We continue to see strong growth in our CTV business, with 80% year-over-year growth in Q2 on a performer basis. We believe that the completion of the integration of our combined home screen offerings across OEMs into Teams as manager, allowing for a much more efficient workflow for our customers, will further support growth in this business. We are also continuing to grow our CTV inventory, especially across the home screen of premium OEMs like Samsung, LG, and Hisense, which we believe is a reflection of our trusted brand relationships and creative capabilities. We are also growing with other premium supply partners, including HBO Max, Paramount, and others. In addition, we are continuing to further diversify our supply as part of our omni-channel strategy. On the retail media front, we announced our first partnership to activate performance campaigns on retail sites through PentaLeap. We aim to grow our presence in retail media and leveraging brand-advertiser relationships into performance use cases, specifically product sales. On the strategic account front, we signed new joint business partnerships with several top global brands, including Kia and Zalando, underscoring confidence in our integrated offering. We're seeing initial success in cross-selling performance products to legacy clients. Examples include Lowe's, Citroën, A.D. InBev, Nestle, and others. And in our outgoing direct response business, which is focused on affiliates and other pure performance advertiser categories, we launched our Amplify AI-based MCP server that allows AI agents to connect natively to the Amplify platform. This innovation streamlines integration and workflows for performance marketers, allowing us to deliver greater efficiency and measurable results. An early adopter has called the product a revolution of campaign management and a mandatory tool for anyone serious about managed performance advertising. Also, as has been the case for several years, legacy outbrain supply outside of our traditional feed continues to grow to over 34% in Q2. enabling performance advertisers to reach consumers with a range of placements across the entirety of the open Internet, including display placements, banners, and others. We continue to expand this type of supply specifically for direct response performance buyers. On the supply side, we saw some decline in our traffic volume, driven by two main factors. We made a deliberate and aggressive reduction in publishers and properties that don't meet our elevated quality standards post-merger, removing over 200 publishers in the last few months. This scheme has led to a roughly 5% year-over-year reduction of legacy outbrain revenues. And while it creates new professional revenues, we believe it strengthens our marketplace long-term by ensuring our supply drives positive outcomes for advertisers on quality placements. Second, we saw a modest decline in traffic from premium publishers, largely due to reductions in search-driven visits. As this is an area that's generating many questions, let me clarify. Notably, even with some pressure on page views, we saw a seventh consecutive quarter of RPM growth on the Albrain Legacy platform. which largely offset the decline in page views and is a testament to our improving monetization per page and per session. It is important to note that search traffic accounts for around 70% of legacy outbound page views and is in a much smaller portion across our full network when you take into account legacy keys and CPD impressions. Another point is that the impact of AI overviews or AI summarizations is more pronounced by a factor of 2x on evergreen content than on current events content, such as news, sports, entertainment, and finance, where our inventory is the strongest. Also, AI prompts such as chat, GPT are a growing traffic source and drive a higher rate of page views than before based on users clicking on the disclosure of sources for topics they are most interested in. We are in active discussions with companies in the ecosystem about opportunities to monetize such AI-based results. Moving to the product and technology side. We are accelerating investment in our next-generation advertising platform, Team Ad Manager. We expect that the next generation of our platform will be built leveraging agentic AI modules, delivering increased efficiencies for agencies and effectiveness for advertisers, with a focus on providing control, transparency, and modularity. We expect to launch this new platform in H1 2026. More on that in our upcoming quarters. In Q2, we launched new offerings that align with our core differentiation. We introduced connected ads in beta, a distinctive format that allows a single brand to occupy both mid-article and end-of-article placement, demonstrating the potential of brand formants. Early interest signals real potential for scale, and we are already testing it with several advertisers. We've seen overall growth in our vertical experiences across publishers. our vertical video solutions which includes immersive feeds the legacy moments product is in fraction with both advertisers and publishers and is live on over 73 new publishers with early adoption by brands including luxotica james smucker company and others on the ctb front we also launch new non-standard formats for in-play advertising these include l-shape pose ads and others We're also in the initial stages of driving performance campaigns on CTB, with the initial focus being on delivering incremental traffic to advertiser properties by retargeting web users on the CTB screens, leveraging the seed omni-channel household graph. In closing, We remain confident in the strategic rationale behind this merger, to build the go-to platform for advertisers seeking scaled, high-quality performance on the open Internet for all their campaign objectives. We are continuing to invest in growth areas. We are not fully satisfied with our financial performance in Q2 and how we are guiding for Q3. But when we look at the medium term, we believe that we will continue to provide incremental value to advertisers, leveraging AI, our unique product capabilities, and access to the most premium media of the world through an end-to-end platform. We have made some organizational decisions that we expect to lead to market share gains, growth, and stronger yields and profitability. While Q3 may still reflect some of the traditional effects of the merger, including our reorg and realignment, we expect to see clear momentum building into Q4. I am tracking the leading indicators closely and look forward to updating you on our progress on our next call. Now I send over to Jason for a more detailed financial update.

Thanks, David. Revenue in Q2 was approximately $343 million, respecting an increase of 60% year-over-year on an average basis, driven primarily by the impact of the acquisition. On a pro-plumber basis, we saw a similar year-over-year decline percentage in Q2 as we reported in Q1. While we saw momentum early in the quarter, the summer months have proved more challenging. In June, we experienced several headwinds that decelerated our revenue trends. One, a lower rate of conversion from our sales pipeline, particularly in key countries, U.S., D.K., and France, that we attribute largely to operational issues, as David discussed. Two, some softness in a couple of our key verticals, particularly consumer goods, automotive, and luxury goods, primarily driven by tire-related uncertainty and software demand in certain geographies. And three, the short-term residual impact from our cleanup of underperforming supply partners, which drove the majority of the decline in paid use experience and was a headwind on revenue. Despite this, we still experience positive year-over-year growth in EXPECT from the legacy operating business, as we continue to drive higher RPMs through improved algorithms, optimizations, and improving performance for advertisers, which helps lead to higher average PPPs. EXPECT was profit in the quarter with $141 million, an increase of 158% year-over-year on an agitator basis, driven primarily by the impact of the acquisition. Note that expector's profit growth is outtaking revenue growth, which is driven primarily by an inexhaustible change in our revenue mix resulting from the acquisition, additionally aided by the continuation of improved revenue mix and RPM growth from the legacy outbrain business. Other cost of sales and operating expenses increased year-over-year, predominantly driven by the impact of the acquisition, as well as several related one-time expenses. Note, in the quarter we recognized $5 million of acquisition and integration-related costs, as well as $2 million of restructuring charges. Also note that we reported a benefit from fuel-related cost energies in Q2 of approximately $13 million, which we expect to extend throughout H2 as we continue to capture savings across both compensation and non-compensation areas. We continue to expect total cost energy savings to amount to approximately $40 million for the year and maintain our expectation of $60 million for 2025. Overall, we're focused on our integration and plan to remain disciplined on cost and cash flow generation while taking steps to drive top-line growth. Adjusted EBITDA for Q2 was $27 million, which, on a national basis, represents an increase of nearly 2.5 times as compared with Q1. Moving to liquidity. Free cash flow, which is a reminder we defined as cash from operating activities plus capex and capitalized software costs, was $19 million in the quarter. This includes cash outflows related to transaction costs, which, when excluded, resulted in adjusted free cash flow of $22 million. During the quarter, we used $8 million of cash to repurchase $9.3 million principal amount of long-term debt at a discount of approximately 17% as the debt is trading at a considerable discount of car value. As we continue to expect to generate positive cash flow this year and beyond, we need the opportunity to use excess cash on hand as an accretive capital allocation opportunity. We will continue to consider repurchases in the future. As a result, the end of the quarter was $166 million of cash, cash equivalents, and investments in marketable securities on the balance sheet. We continue to have $15 million, or about $17.5 million, in overdraft borrowing classified in our balance sheet as short-term debt. And we have $620 million in principal amount of long-term debt out of 10% coupons due in 2030. The long-term debt is tied in our balance sheet, minus discount and deferred financing fees, and at about $623 million by June 30th, resulting in a net debt balance of $454 million, as compared with $471 million from March 31st. In these first 150 days, I'm very proud of what we've accomplished in terms of integration, decisions we've made, and how quickly we've adapted as a combined management team for our learnings. All of our integration decisions take into consideration our long-term goals and visions. This process is challenging, as we know two complementary but distinct businesses, and strive to quickly execute a high-performing, efficient total market strategy. In the short term, the assault is slower than anticipated return to growth, which we believe is predominantly a matter of timing. The delays in our return to growth have a sizable impact to our adjusted EBITDA in the short term, as most of our expenses are fixed costs. With that context, we provided the following guidance. For Q3, we expect excess gross profit of $133 million to $143 million, and we expect adjusted EBITDA of $21 million to $29 million. Considering the fact that Q4 is our most significant quarter of the year, historically contributing nearly 50% of annual adjusted EBITDA for a former business, and the unusually wide range of outcomes we currently see for Q4, due to the uncertainty of how quickly this deficit-taking will impact revenue trends, we have made the decision not to reaffirm adjusted units of value for a full year 2025. However, we still expect to generate positive free cash flow this year and are very confident steps we are taking will drive improvements to the results starting in Q4 and into Q26. Now, I'll turn it back to the operator for Q&A.

Thank you. The floor is now open for questions. If you do have a question, please press star 1 on your keyboard. Again, it's star one to ask a question. If you'd like to remove this up into you, please press one. And our first question comes from Laura Martin. Laura, your line is live from you.

Hi, thank you. Hi, thank you. I'll just ask two. Just following up on that last comment based around debt, so you're buying in debt at 17% risk count, which sounds like a good deal, but you only spent $8 million, but your free pass flow was 19%. And you have so much cash on the books. Is there some, like, why the restriction? Why not spend, like, all your free cash flow on buying in debt since you have so much cash on the books? I'm just curious as to how you size how much debt you buy in in a single quarter. Is that a good idea? And then second, for David, for you, I want to drill down a little bit on this negative 20%. in the U.S., which is creating a headroom. How much of that is structural? We're going to have to go through four quarters of that. And how much do you think is just a one or two quarter dislocation that will not recur in future quarters? Thank you.

Thanks for your question. So on the debt, you know, we used, you said $8 million. You do have a lot more cash than that. You know, we used what we were comfortable with, you know, immediately in terms of excess cash. So our first interest payment on the debt was actually in a week or two. So, you know, we're still in the process of degrading. We're moving cash around in the most efficient and effective way, but we totally are open to more in the future. As we expect to generate cash flow this year and, of course, long, it's something that if we see it as an accreted use of capital, we'll continue to. For us, the $8 million is really the start of what we thought was exact cash available on the balance sheet at this time.

All right, Stephen, I'll take the second one. So, as you said, I mean, we're not happy with exactly where we ended, but the good news is that these are all within our control. The organizational, structural, legal, sales processes, we've made a lot of changes on that. Very quickly when we realized it, I can tell you that I'm tracking very closely leading indicators around pipeline conversions, leading RFTs, and all of them are trending up in the U.S., so I'm pretty positive around how we're going to end up towards the end of the year, and I think, again, this is in our control, and I think we've made the right changes to affect that.

Thank you. And our next question comes from Matt Conlon from Citizens. Go ahead.

Thank you so much for taking my questions. My first one is just on, you know, it's good to see you guys. You're from the 40 million in Synergies in 25, the 65, the 70 in 26. But can you just talk about if things don't materialize in the top line that you guys expect, what's your willingness to cut more out of expenses just to meet that three-plus-four target for the end of the year? Maybe I'll take that. So at the moment, we're really focused on growth, totally focused on back-to-growth, and we believe that the changes we've made will get us there. We always look at opportunities if we need to. Right now, we believe we have the right cost structure to get back to growth in the second half of the year. We are tracking it very closely, so if we see something that changes, we will adjust. We've done it in the past, so we know how to do it. But right now, I think we decided deliberately to focus on back to growth. Got it. Maybe just a follow-up on just the return to growth and the rebate to go-to-market strategy. You said they call that pricing and packaging. Can you just elaborate just on the specificity of what you are doing and what's giving you confidence that everything can get back on track? For sure. I mean, as an example, legacy keys move from being a single-quarter company to a multi-product company. I think there's a lot of opportunities to package better the omnichannel offering. So if you price, for example, something where you give a home screen placement, but you can package with it, also in-screen and other online video, just approaching this in a more structural way, more strategically around the portfolio, I think it's a big change and we already see that working. On top of that, we're now adding quite significant amount of cross-selling of performance, to legacy customers and branding solutions to legacy Aldrin customers, packaging those together, finding the ideal pricing for the combined offering is something that takes some time. I think right now we are, again, it's not perfect yet, but it's already really impacting the volume and the conversion rates and the win rates in our piece. Thank you so much.

Thank you. And our next question comes from Egal Aron from Citi. Go ahead.

Hey, guys. Good morning. So just on the transition challenges, I want to maybe tie some of these points together a little bit better. Dave, you talk about the advertiser response being really strong and being energized by some of the new combined products. And, you know, we're down 20% in the U.S., seeing some of the challenges around the sales organization. It sounds like the majority of the challenges, or maybe even all, are around that. So can you just maybe bridge those two points first, and then in what you're seeing in 4Q and pulling the guidance and the wide range of outcomes, you're talking about having sort of, or feeling like so confident you've fixed these issues. So what gets you maybe to where you want to be in 4Q versus not in this wide range of outcomes that you see potentially in 4Q? Thank you very much. Thank you. presenting and promoting the concept of branding and performance and the opportunities that, you know, we bring to the market by combining the two. For example, Connected Ad took a great launch of a product that has the mid-article, end-of-article, one brand taking it, then being able to combine. So that is super positive. I mean, we have not had any any issues around what's the meaning of the combination. Everyone wants to give it a chance, wants to potentially push more budgets there. Generally, people are looking through diverse types of world gardens and are seeing one of the largest players on the open internet that can reach incremental audiences with great ROI from branding and performance is resonating very well. Now, in three markets, we're having really organizational operations that are highlighted, which is the U.S., U.K., and France. Other markets, for example, in Europe, have all been growing. So it means it really relates to management, operations, rigor, and other things that we are addressing. I'm very confident because I see already, in distinct times, I'm confident because I see leading indicators that I refer to, like how much more coverage we have on our fees, the win rate, the number of meetings, the conversion of the pipeline, the speed of the conversion of the pipeline. So looking at all of these, I can tell you we've seen already in July month-over-month growth in cross-selling of both performance capabilities, performance campaigns to legacy clients and running campaigns to legacy helping clients. I see more meetings And I'm pretty encouraged by what I see, and I think it's not great news how we performed and what we're driving, but it is good news that it is, I feel it's mostly destroying our control and getting back market share is something that with better execution, we're highly confident we'll get there. Okay. And I guess, you know, you talked about the impact of traffic from, Gen AI and AI overviews. So this topic is probably top of mind more than any other single topic from the vectors. And you actually outlined you're seeing some impact, but it's not the majority of your uh revenue basis and impacted directly from this you can just talk about the trends that you expect to see and part of the um the concern is that the ai overviews continues to become a bigger part of church this has a bigger impact um was the was the decision to move away from certain publishers related to the trends that you're seeing here at all and then the commentary around trying to monetize the new Gen AI overview. I thought that was pretty interesting. I just wanted to hear a little bit more about your approach there. Thanks. So, Igor, maybe I'll start this with one sort of thing that is specifically for us, which is this reduction in publishers. And we have to elevate the quality of the supply. I think when we try to bring key legacy advertisers to supply, We just have to play in a different ballgame than before. And we made a conscious decision to reduce about 200 countries with a lot of pay dues, lower quality, and about 5% of the revenue. So that's something that specifically is something we did. Going back to the bigger topic, A, I mean, we are big believers in the open Internet generally. People are spending more time on the open Internet. That includes, obviously, also CTV, which is on the runway for us for about $100 million this year, growing 80% this quarter. We have unique offerings. I think diversifying from the open Internet, from traditional publishers to publishers, to city view and to retail media things they're doing. Specifically on traditional published shows, I think it's a mixed bag. So search, AI companies have really had minimal impact on us until now. I'm taking it very, very seriously and obviously we're tracking it. But there's a few elements that play here. One is the type of content. Evergreen content is much more effective than current content, which is news, entertainment, sports, finance, and others. Publishers are really doing a lot to increase the engagement of users on their site, including incorporating chat GPT-type capabilities into the site and keeping the users more engaged. And that creates more interesting supply that we're helping them monetize and can help them monetize. Generally, I think the premium publishers are doing a lot to improve experiences on the site, less identity, better quality, which plays, again, in our favor here. So there's a lot going on. It's clearly, I think, I mean, we can't deny it is a risk on page views. On the other hand, we've also shown continuously improvement in monetizing pages. So our RPM, which is what we get per page, is increasing for the seventh consecutive quarter, and we see a really good pipeline in the algorithm to continue to do that. And even here, it's a mixed bag, which I think it is something that is impacting the industry, but the industry has always found a way to... to really do well, and I'm confident that between sort of what we can do with the publisher world, diversification, letter monetization, I think it's going to be something that we go through and come out of it in a good place.

Great.

Thank you so much, Ed. Again, ladies and gentlemen, to ask a question, it's star one, and our next question comes from Ed Alder from Jefferies. Your line is open.

Hey, everyone. Thanks for the question. Maybe just digging into kind of these headwinds a little bit more, is this mostly been on the go-to-market strategy or is the product fit? Just to give a little more color on there, I would be greatly appreciative. Hi, David. I think I said it's very much, I would say, operational, which then gives us the confidence that we can fix it. I think the product is great. the new go-to-market, which clarifies the branding packages, performance packages, the omni-channel is something that is coming to resonate and leveraging this sort of new go-to-market to get more business. So we're very confident on the product, the strategy, the brand performance combined offering, our premium advertiser base, increased our joint business partnerships. We're working a bit more in the U.S. on the programmatic side on certain type of deals. So I think it is things that are in our control, and I feel that sort of we already turned the corner based on some of the numbers I see in July. Great. And on the CCD opportunity, would you say today that's mostly on the home screen, and then where that can go? Could you get in-screen placements, or is home screen the main part of that strategy? It's a combination of the two. I think the home screen is where we have a really clearly unique differentiation. Many of these home screens, like Sense Today, we have exclusive access to. It's really a strong demonstration of unique creative capabilities and the quality of advertisers. LG, Samsung, iSense. they need to make sure that on the home screen you have only the most premium advertisers of the world and they're very selective. Even when we look at the legacy feeds, the advertisers are still selective. So that's a great differentiation, but a big part of the business is in-stream. I think the other advantage that we have is now that All these CTV options have been integrated into TDA Manager, which is our platform. It makes it much easier for agencies to run campaigns on an omni-channel basis and dynamically allocate those campaigns. So that is, again, I think a big play link for the growth in potential in CTV. Great, thanks.

Thank you. And our next question comes from Zach Cummings from B. Reilly Securities. Go ahead, Zach.

Hi, this is Ethan Wydell calling in for SACM, and thank you for taking my question. I think to start, going forward, can you maybe speak a little bit to your capital allocation priorities, maybe between that pay down and other options, and maybe what your strategy would be there?

Sure, I can take that. You can take that question. We said really since we closed the deal, our priority has been to obviously go back to growth here, focus on integration, synergy capture, and generate cash, and using that cash to do leverage. Our target leverage ratio we've shown in the past is 1 to 1.25 times. Honestly, I think the use of what I would consider our excess cash you know, to start buying back some of the other significant discounts, you know, aligned with what we've said in the past. And that continues to be our priority.

Got it. Thank you. And then sort of, you know, looking at tariff uncertainty in the macro environment right now for throughout the rest of the year, I was wondering if you could just speak a little bit to your visibility looking at demand for the rest of the year.

Yeah, I think we feel very good about it. Obviously, you know, what we're focused on are the reasons, case-wise, as David mentioned in the prepared remarks and also in one of the next questions. you know, the number of users, the RFPs, the pipeline-related pipeline, and we're monitoring it, you know, even closer than we were previously. And I think we feel, you know, better about our visibility than we did, obviously, in the first maybe 100 days compared here to the second 100 days post-coordinates. So, you know, we feel good. We're monitoring it closely. And there's days that we're stepping over, you know, the KPIs that drive the business and the local networks into it. And I think that is reflected in a lot of the operational and organizational changes that we've made. So that's all good. We also just have a pretty diverse business where we did see softness in certain verticals or geos. There is kind of an overlap there, and none of our verticals are more than a single digital change. So where we have seen softness, we have seen softness in luxury geos or automotives, but it's been high quality, and as David said, if you check out those three markets, you know, you take the other 50% or so of the legacy team businesses, it's grown year over year, right? And so you feel good about that and you're gaining momentum that you really saw up and approaching and it's flattened down a little bit.

And I would just add, I mean, thank you, diversity is very relevant here. We're about 30% in the Americas, 60% in India, and 30% in JPEG as well. As I said, we don't have any major customer vertical concentration. We've seen some, you know, softness in certain geographies in like Beauty and Lux and others, but the portfolio is diversified enough. We don't see today any major macro negative impact. And other than, you know, again, there's been some instability around the tariff announcement, but I think we're over that at this point, and we don't see any big macro impact here.

Understood. I appreciate all the color.

Thanks. Thank you. And at this time, we have no further questions. I would now like to turn the floor back over to David Kaufman for any closing remarks.

Thank you very much. Thanks for joining us today, and I look forward to updating you on some of the developments you see in our business. Thank you.

Thank you. This does conclude today's conference. We appreciate your attendance. You may disconnect your lines at this time and have a wonderful day.