Weave Communications, Inc.

Greetings and welcome to the Weave Communications fourth quarter and full year 2022 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. And as a reminder, this conference is being recorded. It is now my pleasure to introduce to you Mark McReynolds, head of investor relations. Thank you, Mark. You may begin.

Thank you, John. Good afternoon, and thanks for joining us for our fourth quarter and full year 2022 earnings conference call. Joining the call today are Brett White, CEO, and Alan Taylor, CFO. Brett will open the call with an overview of Weave's performance and strategy, and Alan will discuss our financial results in more detail. After the prepared remarks, we'll take questions. Today's discussion contains forward-looking statements that represent our beliefs or expectations about future events. All forward-looking statements involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking financial statements. Please refer to the cautionary language in the earnings release and in WEA's filings with the Securities and Exchange Commission, including our most recent Form 10-K and 10-Q for additional information concerning factors that could cause actual results to differ materially from the forward-looking statements. We'll also discuss financial measures that do not conform with generally accepted accounting principles. For the sake of clarity, unless otherwise noted, all numbers we talk about today will be on a non-GAAP basis. Information may be calculated differently than similar non-GAAP data presented by other companies. A reconciliation between these GAAP and non-GAAP financial measures is included in our earnings press release, which can be found on our investor relations website at investors.getweave.com. And with that, I'll turn the call over to Brett. Thank you, Mark.

Good afternoon, and thank all of you for joining us today. I'll start my remarks with a review of our results for the year before providing a broader company update. I'm pleased with our fourth quarter performance and how we closed out the year. We generated revenue of $142.1 million in 2022, a 23% year-over-year increase and above the high end of the initial guidance that we gave at the beginning of the year and also above the high end of last quarter's guidance. We continue to make significant progress on the path to profitability throughout the year. For example, if we compare Q4 2022 to the same quarter in 2021, we improved our gross margin by over 900 basis points and we improved our operating margin by over 2,200 basis points. Our operating loss for the year was 31 million, a 15% improvement over last year and over 5 million better than the high end of the guidance we gave at the beginning of the year, and 2 million better than the high end of the guidance we gave in November. Our customers have proven to be very resilient in the midst of a challenging macro environment, and we saw demand for Weave increase in the second half of the year as healthcare providers sought out our high ROI solutions to make their operations more efficient. I want to sincerely thank the Weave team for their outstanding work in serving our customers and delivering these results. We have many reasons to be optimistic that 2023 will be a positive momentum-building year, but first I want to look back and share some of what we learned in 2022. We made a number of changes to our go-to-market motion and organization at the beginning of 2022, which when combined with the increased employee attrition from the great resignation, particularly in our sales organization, put us in a place where we had fewer ramped sales reps in early 2022 than we had in Q4 of 2021. Additionally, one of our most important sources of sales leads had historically been in-person events. And due to the COVID-19 pandemic, we had very few in-person events from early 2020 through the first half of 2022, more than two years. These two factors resulted in a challenging first half of the year and a slowing of new customer additions. In the second half of the year, we began to see improvement in a number of key areas of the business. The number of ramp sales reps increased by nearly 60%. We attended more in-person events in the second half of 2022 than in all of 2021. The number of leads steadily improved. The number of new customer additions and the average sales price for new customers increased. And lastly, business efficiency initiatives improved both gross and operating margins dramatically compared to the prior year. By Q4, we had cut our operating loss by more than half from Q1 and Q2 of 2022. In Q4, we also finalized the most robust annual planning process we have ever completed at Weave. The output of that work was a 2023 strategic plan that aligns us around four focus areas in our business. Accelerating revenue growth, building a scalable foundation for profitable growth, delivering an experience that turns customers into champions, and fostering an effective and engaged team that lives our values. This detailed plan was rolled out company wide in January and builds upon the green shoots we experienced at the end of Q4 carrying that momentum into 2023. I want to briefly touch on our plans for each of these focus areas. As I mentioned last quarter, our revenue model is like a big flywheel that you need to continually impart energy upon to accelerate rotation. Our challenging first half resulted in our year over year revenue growth decelerating in 2022. As I noted in my earlier remarks, The second half of 2022, we saw important improvements in key areas of our business. And as a result, we expect revenues to continue to grow sequentially every quarter in 2023. In regards to our scalable foundation for profitable growth, we are intentionally configuring the business for efficient growth in 2023 and beyond with a constant eye on the macro environment. We have built our plans for 2023 to accelerate our path to profitability and we expect to exit the year with positive free cash flow. While we recognize that accelerating our path to profitability may negatively impact revenue growth in 2023, given the uncertainty around macro environments, we believe it is a prudent action to take at this time, and we continue to actively monitor the environment throughout the year. Our third focus area is delivering an experience that turns customers into champions. Custom return has remained stable throughout the year as reflected in our consistent gross retention rate. For the small number of customers that do leave our platform, one of the reasons is that they want to move to a lower-cost solution offered by other vendors. We had close to 100 customers return to Weave this year after leaving for a competitor, and nearly a quarter returned within the same month of leaving. These returning customers are consistently validating our belief from the very beginning that what they really need is a high-quality solution that delivers real, immediate, and measurable business value that makes their office more productive and their patients happy, not a cheap solution. We continue to receive recognition and validation from our customers that our platform delivers best-in-class communication and engagement results. In Q4, we was recognized with key industry awards from each of our three core verticals. In 2022, we doubled down on customer experience and we saw significant improvements in our customer NPS score throughout the year. We accomplished this through creating an excellent customer experience, delivering feature improvements requested by our customers, and increased intention to new integrations. We added new integrations to practice management systems within our core verticals during the quarter and we are focused on continuing to execute our integration playbook in 2023 as we deepen our penetration into our core markets. Our product and engineering teams delivered several important platform improvements in Q4, including the launch of phone reporting analytics for our multi-location customers and a more integrated online scheduling feature to give offices flexibility in scheduling different appointment types and providers. Our fourth focus area is one critical to our success, fostering an effective and engaged team that lives our values. An effective and engaged team translates positively into customer satisfaction and customer retention. I'm happy to share that we've continued to be recognized for our outstanding company culture and our diversity, equity, and inclusion efforts. In Q4, we were named a top workplace by Salt Lake Tribune, We're the only Utah-based company honored nationally for our DE&I practices. Receiving local recognition is important for us as we aim to attract and retain the best talent. I'm proud of what we've accomplished in Q4. 2022 was a challenging but pivotal year for our business. We made a lot of important progress towards configuring our business for growth and success and have taken significant steps to improve our efficiency. I believe that we are set up well to build momentum in 2023 as we continue investing for future growth while remaining focused on delivering strong operational performance. With that, I'll turn the call over to Alan to review our financial results and outlook. Alan?

Thanks, Brett, and good afternoon, everyone. I'd like to start with a brief recap of the full year results. In 2022, total revenue grew 23% to $142.1 million. Subscription and payments revenue grew 25% to $136.6 million. With improved unit economics and operating margin improved over 900 basis points. I'd like to take a moment to thank all of our team members at Weave, our customers and partners for their contributions throughout the year. We delivered fourth quarter revenue of $37.7 million, reflecting 18% growth year over year. This represents 3%, or $1.2 million, over the midpoint of the range we provided last quarter. Subscription and payments revenue grew 19% to $36.2 million. The year-over-year increase was primarily driven by new customer additions over the last 12 months. As we discussed last quarter, we ended the relationship with our third-party digital forms provider in August of 2022. We now offer our customers a more fully integrated digital forms product built by Weave. We have seen positive adoption by our customers and recurring revenue for our digital forms offering increased over 85% year over year. The transition negatively impacted net revenue retention and revenue growth in Q4, as it will take some time for our in-house digital forms product to fully replace the partner product revenue. Our net revenue retention rate was 99% in Q4. However, excluding the impact of the third-party forms provider, NRR remained over 100%. Our gross revenue retention rate remained consistent at 94%, where it has been for the last five quarters. This demonstrates that our customers remain stable and avid users of the WEAP platform, even in the midst of the macro uncertainty. Moving on to our operating results. As a reminder, I'll be referring to non-GAAP results unless stated otherwise. Our Q4 results showed consistent improvement across the board. Gross margin was 67%. This represents a 16% improvement year over year. We have taken steps to rationalize our discretionary spend and streamline our operations. Operating expense was $29.4 million, approximately a $490,000 increase from last year compared to a $5.8 million increase in revenue for the same period. We made a considered focus on operating discipline in the second half of 2022. We expect to refine this approach to support scalable growth going forward. Our operating loss was $4.2 million, an improvement of roughly 6.4 million, or 60%, compared to last year, representing a $2.8 million beat over the midpoint of the range we provided last quarter. The corresponding operating loss margin of 11% is a significant improvement from the operating loss margin of 33% last year. Our net loss was $3.7 million or six cents per share in the fourth quarter based on 65.6 million weighted average shares outstanding. This is compared to a net loss of $11 million or 26 cents per share last year. Adjusted EBITDA loss was $2.4 million, a $7.3 million improvement year over year. EBITDA loss margin of 6% is a significant improvement compared to the EBITDA loss margin of 30% reported a year ago. We continue to have a very strong balance sheet with $113.3 million of cash and short-term investments on hand as of the end of the quarter. We have plenty of liquidity, and as Brett mentioned, we plan to exit 2023 with positive free cash flow. Looking forward to 2023, as Brett discussed earlier, we've made a decision to accelerate our path to positive free cash flow. while taking a cautious approach to our revenue guidance. We've been managing our spend, and the growth in operating expenses has trended down from 40% in 2021 to 17% in 2022. We expect less than a 5% growth in operating expenses in 2023. We believe accelerating our path to profitability while continuing to build for future growth is the optimal decision, especially as companies are operating in an environment of high interest rates and macro uncertainty. We believe our guidance appropriately incorporates the macro challenges we see in the market. For the first quarter of 2023, we expect total revenue in the range of $37.5 million to $38.5 million and non-GAAP operating loss in the range of $5.5 to $4.5 million. For the full year 2023, we expect total revenue to be in the range of $156 million to $160 million. We expect our full year 2023 non-GAAP operating loss to be in the range of $21.8 million to $17.8 million, which assumes continued progress on our path towards profitability. We expect to have a weighted average share count of approximately 68 million shares for the full year. With our leading all-in-one customer communication platform and our improved go-to-market model that's showing increased leverage, we believe we're well positioned to capture the large market opportunity ahead of us. Looking forward, we're confident in our ability to drive another year of consistent revenue growth as we drive towards positive free cash flow exiting 2023. Now Brett and I will take your questions. Operator.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star 2 if you would like to remove any question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions, and we ask that you please limit yourself to one question and one follow-up. Thank you. Our first question comes from the line of Alex Sklar with Raymond James. Please proceed with your question.

Great, thanks. Brett, I wanted to follow up on one of your prepared remark comments on the pickup and live events. I appreciate the color already on the second half of 22 being greater than 2021. Anything you can share in terms of the number of touch points you're looking at over the course of 2023? Is that getting back to pre-pandemic level? And I know you have some other maturing digital motions, but how should we think about live events in terms of kind of overall contribution to your pipeline growth? Thank you.

Sure. Thanks, Alex. So we saw live events pick up meaningfully in the second half. Q4 was strong. We're expecting live events to continue to pick up in 23, and we're planning on investing around those. We're also probably attending more events than we would have traditionally because we've just gotten better at bringing leads out of the events, both sales at show and then sales after the show, so following up on leads. But we're still not back to kind of pre-COVID levels yet, and I don't think we're planning on that for 23 quite yet.

Okay, great. I appreciate that color. And then, Alan, I guess one for you is we think about kind of what you're embedding in the growth outlook as far as location growth versus NRR improvements. I get you're laughing from the forms headwind, but any help on kind of how we should think about that split for 2023?

So Alex, you saw about a 14% growth in location count in 2022. Although we're not guiding to location growth there, I do think that we're going to see some consistent quarterly growth. As Brett mentioned, we see sequential growth quarter over quarter. We exited the year with the highest growth that we saw in all of last year, and we anticipate that continuing. So, you know, right now, those signs and the trend lines are good on that score.

Okay, great. Thank you both.

And our next question comes from the line of Parker Lane with Stiefel. Please proceed with your question.

Hi, this is Matthew Kickert for Parker. Thanks a lot for taking my questions. I wanted to start on net dollar retention that dropped below 100% on the quarter. Do you have any long-term targets around NDR? And what are some paths that you think you could take to increase that over time?

So thanks, Matthew. The NRR, as we mentioned, excluding the impact of the digital foreign proprietor, would have still been above 100%. The calculation for that is a trailing 12 months So it takes a while to turn that thing around. But we do have plans in place both on our roadmap and on our payments solution that we'll begin to address that as we go throughout the year. But it's not going to turn around immediately, just given some of the drag from the previous quarters and the digital forms provider. But we've introduced new products. We've got our own digital forms product. We've got our payment solution where we're emphasizing both growth in customers, growth in our processing volume, and expansion in our net yield. All of those things are areas of focus that we believe will continue to help us bring that net revenue retention level back up. I would just add one other thing on the net revenue retention, and that is we as a SAS business, we charge our customers on a location basis. We also tend to land. pretty heavy in these customers, meaning that they buy our kind of high-end solution. And so from that standpoint, we are a little bit different than a subscription model where there's new subscribers being added as businesses grow back following the pandemic or the recession. But we still look forward to improving that net revenue retention by the means that I just discussed on product and on payments.

Got it. And then I wanted to dive a little bit deeper into the payment solution that you mentioned on that answer. What's the traction been like for that product and how are adoption rates varying by vertical and are you making any new investments there in 2023?

So the adoption rate is good. We continue to prove out new means of going to market there. We are seeing processing volumes increase. We're also seeing on a per location basis. We've also been working hard to improve our net yield. And I think that we will continue to make good strides on just improving the integration of the payments business with the overall communication tools that we provide. That provides a competitive edge, honestly, for us to put those into the mix whenever our customers are interacting with their patients or their customers.

Terrific. Thank you.

And the next question comes from the line of Matt Stotler with William Blair. Please proceed with your question.

Heather, I appreciate you taking the questions. Maybe just the first one on the go-to-market, specifically the direct channel. Obviously, 2022 is a year of transition. We'd love to just kind of get an update on how you're thinking about what's left in terms of go-to-market initiatives for that kind of direct motion and then how that's wearing into your outlook for 2023.

Sure. Thanks for the question. So, yeah, really, 2022 was... all about reconfiguring our go-to-market motion. And we've learned a lot. We've got a model in place now that is working. And moving forward throughout 2023, there's going to be a fair bit of optimization. So we've grown our ramped reps pretty significantly during the year. We've now got a model where actually Some of our reps that left are asking to come back. We've had two recent President's Club award winners actually come back because they've heard that good things are happening here. So we're getting good momentum on the sales rep side. Sales and marketing, the organizations are really working well together. There's been a lot of improvement there. We have, I think, a lot of small opportunities that add up to a pretty significant number just around optimizing our processes, our data, our data flows, you know, lead scoring, a lot of the blocking and tackling that makes a big difference over time when, you know, multiple initiatives are compounded together are happening. So I think those are the big changes, optimizing how we manage through, Events we're learning a lot about new events and how they operate And having that really tight collaboration between sales and marketing is showing a pretty significant Improvement but also also opportunity for the future so it's a lot of I think the heavy lifting the major changes are done and they're working and so now it's just all it's all hands on deck on optimizing and and making sure that our CAC dollars are being spent efficiently. And as we were driving CAC down, that frees up dollars to add reps if it can be done efficiently, add more lead gen. So a lot of real just optimization for 23.

That's a very helpful call. I appreciate that. And then just as a follow-up, you obviously, you've talked quite a bit over the past couple of quarters about bringing the digital forms product in-house. You have a number of other third-party solutions that you offer and integrate with. How do you think about potentially bringing some of those additional solutions in-house or as you kind of balance a feature and product expansion from here, kind of assessing where it makes sense to partner versus what's more valuable as kind of an integral part of the platform?

Yeah, so, Matt, that's a great question. We evaluate that, you know, all the time. Some of the things that come to mind that we've got a buy now, pay later solution. We have an insurance verification solution. Right now the partners that we've got in those areas are working quite well, but we always will be evaluating and trying to not be, you know, hostage to any one partner if we find that there's better ways to service our customers. Our goal here is to make sure that they've got the tools on our platform. If it has to do with patient communication and engagement, that they can use our platform to get that done. And so we evaluate those and we'll look for opportunities to bring those things in-house. We'll look for appropriate, you know, plug-in acquisitions. We'll look for anything that may make our platform more robust to make sure that the customers are served. Got it. Thank you very much.

Just one thing I would add to that is we believe strongly in being partner friendly. We don't feel that we need to build everything ourselves. So like Alan mentioned, we have partners now that are working really, really well. And then also we may, over time, decide to acquire some technology or a product through M&A. We want to be very partner-friendly, and if the partner solution is the best way, it's the win-win for us, the partner and the customer, then we're absolutely open to that. Got it. That's helpful.

Thanks again.

And the next question comes from the line of Mark Schappel with Loop Capital Markets. Please proceed with your question.

Hi. Thank you for taking my question. But starting with you, with respect to the macro environment, Have you seen much in the way of any change in terms of sales cycles or buying behavior or customer attention since the last earnings call?

Since the last earnings call, no. We talked a little bit about it I think at the beginning of the year where we saw some of the decisions where previously an office manager could just make the decision, now maybe the dentist or the vet or the owner may wanna weigh in and be part of that decision. So that's been pretty consistent theme throughout the year, but certainly no additional, I would say, sales cycle headwinds in the last 90 days.

Great, thank you. And then just building on the earlier question around go-to-market, I was wondering if you could just expand a little bit on your sales strategy around payments is, is the company's sales strategy around payments different from the strategy for the rest of the platform?

Yeah, it's a different motion. So, you know, currently we have for selling the solution, we have, you know, inbound, an inbound sales team that obviously handles all the inbound interest. We have an outbound team. And then we have a middle market team. And then we have an upsell team. You know, we will, on a new sale to a new customer, we will introduce them to the payments concept. And then we are doing some work on the product to actually enable the going live with the payment solution, even if it's card not present only. So for example, enabling text to pay straight out of the gate. And then if a customer is not ready to go yet with the payment solution, we then hand that off to the upsell team, and then they would do a follow-up And I've seen that work quite successfully in prior lives. So that's at a very, very high level. That's the motion. And then, of course, we have teams that look at usage and make sure that customers who are signed up for the platform but maybe aren't processing yet or are signed up for the platform and are not processing the volumes that we think are possible We would have campaigns, either in product or marketing campaigns, to reach out to them, explain to them the value to their business of the payment solution. So we're kind of constantly, but not annoyingly, informing them of the benefits they could get from our payment solution.

Great. Thank you.

And the next question comes from the line of Tyler Radke with Citi. Please proceed with your question.

Hi, this is Kylie on for Tyler. Thanks for taking the question. Brett, you mentioned 25 returning customers within one month this year. What kind of conversations were had with the sales team and what were those other platforms missing that was the main driver of their return? Thanks.

So, you know, Weave has been at this for a while and we have built a very comprehensive, deep solution Sometimes when new entrants come to a space, and I've experienced this in a prior life as well, they will make very bold claims for very low prices, and customers will say, well, that sounds good. They'll go over it and find either the solution is not what they were led to believe or there were really important pieces of functionality at Weave that they miss and they need. or the implementation doesn't go well or something great doesn't happen and they come back. And so that's great to hear because it just validates the value that the Weave solution delivers to our customers. We actually call those boomerangs here internally.

Okay, great. Thanks. And just one more, given all the excitement around OpenAI and ChatGPT, How are you thinking about the opportunity? And if you do plan to integrate the foundational models, is that something that's built into your guidance and margin outlook? Or if not, what are your main initiatives within R&D this year?

So I can tell you that despite the desire from perhaps our product and engineering team, we did not build revenue into our model this year for AI-enabled products. The major initiatives around our product this year is expanding our SAM, so adding new integrations in our core verticals, as well as adding integrations to other specialty medical. So think med spa, plastic, physical therapy, So that would be one. So expanding the SAM through additional integrations. Increasing our NRR through deeper integration. So our integrations, you know, can vary between being very light to very deep. And we find that when we deepen the integration, it improves customer retention and it actually allows us to sell more products. So those would be two on the integration side. And then also on the product roadmap are new products and new functionality. So continuing to deliver product that makes us a really attractive platform for multi-locations. There's certain functionality that multis would like. And so we have many of those key elements of functionality that multis want on the roadmap that we'll be delivering this year. And then also additional products or features that enable us to take additional share of wallet and just be more competitive. So that would be, I think, the bulk of the roadmap for the year.

Thanks very much.

And our next question comes from the line of Jacob Staffel with Goldman Sachs. Please proceed with your question.

Hey guys, Jacob here on behalf of CASH. I wanted to ask a quick question around what you're seeing in Q1 thus far, I apologize if this was touched on earlier, as well as what entirely does the guidance for Fiscal 23 encompass from an assumptions standpoint?

So in Q1, I think that we've seen more of what we saw in Q4. We were seeing some good momentum exiting Q4 that's carried on through the first couple of months here as we're near the end of February now. So we're pleased about that, obviously, and the guidance, you know, we want to make sure that our guidance, that we have a high conviction that it falls within the range that we are going to deliver. And given some of the economic environment, our desire to make sure that we get to free cash flow positive by the end of the year, that's really what is influencing the guidance as we look through the balance of the year. We're going to balance that carefully with the ability to grow, though. All of the efforts in our go-to-market, on the go-to-market side of our business, which are now coming to fruition with more ramp salespeople, you know, less employee attrition. All of those things are, you know, up and to the right with respect to how we're entering this year. So we've got to now just make sure that we balance that with the desire to make sure that we move towards quickly towards profitability.

Awesome.

Thank you so much. And let me just add a little bit to that if I could. The momentum that Alan refers to, just to be clear, is, you know, we've seen... really strong lead flow. We've seen good sales. We've seen strong payments volume so far in the beginning of the year. So those are what the momentum that we're seeing. And then also on the growth versus profitability, just to be clear, our goal really was to get our engine our go-to-market engine, our onboarding engine, our support engine running very efficiently. And that was job one, to get the machine really working well so our sales teams could be successful, so they could be winning, our customers would be winning. So that was job one, to get things efficient. And that was before we put more logs on the fire, if you would, to accelerate revenue growth. So I think we're really well down the path of getting the business running efficiently, especially on CAC and cost of delivery. And now we're going to keep a close eye on that before we start throwing more logs in the fire. But make no mistake, we definitely are very focused on growing the business. We just want to do it in an efficient way.

Awesome. Thanks so much. Really appreciate the color, guys.

And the next question comes from the line of Brent Braslin from Piper Sandler. Please proceed with your question.

Hi, guys. This is Hannah Rudolph on for Brent today. Thanks for taking my questions. Just first one, kind of piggybacking on an earlier question. It's really interesting and nice to hear about these boomerang customers. I just guess given this dynamic, have you changed the way you position your platform in this environment at all?

I don't think we have a lot. We certainly have battle cards for our salespeople to more effectively kind of give them guidance around what they might experience and to even have referral customers that we can turn them back to to make sure that they are making educated decisions. But I wouldn't say it's necessarily repositioning of our platform. It's just we're better at being able to hang on to those customers. Our customer success representatives are better able to do that, and we've got better data with which to do it with.

Great. That's helpful. And then you've talked about the return of in-person events and intending an increasing number of these events. But I guess how are your digital marketing initiatives trending, and how are you thinking about these going into this year?

So lead flow over the last two quarters, we've seen significant increase there. The marketing group is very pleased with the kind of run rate that we're on. Also, our close rates relative to the inbound leads are good and strong, and we've been able to maintain that strength. So overall, that I think is a positive, and we're excited about those leads, not only in our core markets, by the way, but even in some of the other verticals. We continue to gain customers outside of our traditional core verticals, on our non-integrated products. And that gives us a great starting point for as we decide to expand in the future.

And I'd just add that the marketing team has

At least the leadership is new as of the beginning of 2022, and they spent the year doing a lot of experimenting and working on understanding what dollars spent where produced the highest returns. They are very focused on trying new things. If it works, great, we double down. If it doesn't, we're totally happy to fail fast. they've become quite clever on trying new things and seeing what works. So I would say that the digital marketing efforts have improved pretty dramatically. It's a very results-oriented, metric-oriented team. And I'm super proud of what they've accomplished and the fact that they're just always trying new things.

Great. That's really helpful. Thank you.

And there are no further questions at this time, and I would like to turn the floor back over to Alan for any closing comments.

Yeah, so everybody, thank you so much for joining us. I have been told that I've misstated the guidance for my remarks. I didn't intend for that to be different from what we published in the press release. The range for the full year 2023 non-GAAP operating loss is 21.3 million to 17.3 million dollars, not 21.8 million to 17.8 million dollars. So I wanted to clarify that. And with that, thanks for joining us, and we're looking forward to connecting with you throughout this upcoming year.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.