Zeta Global Holdings Corp.

Fortune 1000 customers spending hundreds of millions to billions of dollars in marketing is just a matter of time until we move them over. But I think even more impressively to us is the opportunity. There's a 10x ARPU differential in the average revenue for that 100k to a million customer of about 98k versus almost a million, 981k for the super scaled customers. And I think as you heard, for the first time, more than half of the customer base is now using more than one channel for Zeta.

The other thing I would point out, Rich, is what we're seeing in the marketplace is some of the macro issues are driving our clients to move from proof of concept to superscale clients much more rapidly than we've seen in the past. So as our clients are seeing inflation, as they're seeing a potential downturn, what we're seeing is everybody is far more focused on efficiency of marketing. And as they look at efficiency and they look at efficacy, they're seeing the return on investment on our platform We're literally returning, for most of our clients, 10 to 1. For every dollar they spend with us, they're returning $10 in business to themselves. If you take what they're paying us in subscription fees back into their returns, and we're seeing budget budgets. that have been traditionally going to linear, moving to the Zeta marketing platform at an accelerated pace, and I think that's a trend that we can expect to continue.

Thanks. So, you know, I think you probably often see with a superior product, one of the things competitors use is sort of fear and distortion as their way to try to defend their positioning. Same happens in the investment world. I wouldn't normally ask this, but I'm sort of curious if you had any commentary around a recent short thesis that emerged, which, in our view, didn't carry a lot of teeth. But now that you've got a clear table to talk, I'm sort of curious if you had any feedback. Thanks.

Well, Rich, listen. I think as Mark Twain said, the truth is stranger than fiction. Of course, he said it before bloggers emerged that could effectively make things up as they go along. We're really focused on writing our own story here. We really believe that if we continue to require, I'm sorry, to retain and hire the world's best people, build great products, and build a great company, everything will ultimately take care of itself, and that's really what we're focused on.

Thank you, Rich.

Thank you so much, Rich. We appreciate you.

The next question is from Brian Schwartz with Oppenheimer. Please go ahead.

Yeah, hi. Thanks for taking my questions this afternoon. One for David, then a follow-up after for Chris. David, you mentioned or Chris mentioned that the CDP Plus product was in half of the big deals that you won in the quarter. I was wondering if you can, you know, that seems to be a really positive trend and something that we hadn't been seeing. I was wondering if we looked under the covers and you looked at maybe the RFPs or pilots that you're doing or you look at the pipeline opportunities that Chris provided color to, are you seeing the same sort of trend in terms of people looking towards the business to run their CDPs?

Yeah, great question. I think we're seeing the CDP business grow at an exponential pace, quite frankly. It's really gone from something that people were talking about as a nice to have to today marketers are starting to say it's a have to have. As they move from sort of older school data repositories, data lakes, data warehouses, to focus on deterministic data and really leveraging their own first party data and extrapolating that into how they go to market, there is no better way to do that than a CDP. What I would tell you is that the RFPs that we're receiving on CDPs continue to be greater than half of the RFPs we're receiving, and we are winning them at an even greater rate than our normal above 50% win rate. And I think what we're seeing is when we sell a CDP, it comes with the data cloud bundled into it, which is why we call it a CDP+. And if you look at all of the analysts over the last few weeks that have come out with new stories, including, well, there's one coming next week that I almost just messed up. But there's a bunch of stuff that's come out around our CDP being the top in the industry now. A lot of it is not just the architecture of the CDP software, which is, we believe, superior to anybody else's, but the ability to do it with the data cloud changes the narrative when we're talking to customers and they're seeing the type of data elements that are coming in. The really exciting thing about that is once they start using the blended data and we're matching it greater than 80% of our data cloud to the average customer's first-party data as we scale, What we're seeing is they're coming up with incredible audiences that they want to target inside of the data cloud. Well, guess what? They cannot target to those audiences because they all synthesize to a Zeta ID number unless they use us to activate. So not only are we winning CDPs at an accelerated pace, It is truly the Trojan horse into the enterprise because as they use these incredible attributes that we bring to life, there is no way to activate to the consumer unless you're using the ZMP.

Thank you. And then the one follow-up I had for Chris, I really just wanted to make sure I understand just if there is any changes at all with the guidance on your philosophy. The reason that I ask is we see the results here in Q1. It certainly looks really good. The business is accelerating. You guided for that acceleration to continue again in Q2 on the growth and on the margin improvements. So, you know, we all see the headlines and what's out there. I think you gave us a lot of color into what you're saying and the confidence in that guidance. But what I wanted to ask you is, in your guidance, are you incorporating at all any sort of either conservatism or consideration for any potential slowdown in enterprise marketing spend? That's it. Thanks.

Thank you, Brian. The short answer is we feel like we have the current macro environment and really good visibility into our pipeline all factored into our guidance as well as hard to build, which is a track record of beating and raising. I think what stood out to us in the quarter in particular was if you look at the quality of the revenue and the margins that were delivered structurally, we're growing in the most durable, high margin areas of our business. Good evidence of that, as David mentioned, is deal sizes are getting bigger. Contract durations, I think it was an important point we made in the script, which also goes into the visibility we have into our revenues. Contract durations are getting longer, now almost approaching two years. significant change from even six months ago. All-time high direct platform mix of 81%, and not surprisingly, the gross margins followed. So we feel like we have it all factored in, as well as wanting to make sure that we continue to build upon our track record we've established now over the last four quarters.

Thank you.

The next question is from Ryan McDonald with Needham. Please go ahead.

Thanks for taking my questions and congrats on an excellent quarter. David, maybe first for you. It's great to hear about all the direct sales productivity improvements that are driving strong, you know, wins in activity. But, you know, you've done a lot of work in terms of sort of external sources and partnerships to try to drive, you know, lead flow and sort of more at bats. You know, notably you had the Snowflake partnership in fourth quarter. You're seeing some inclusion on the Forrester reports in first quarter. Just curious what sort of returns you're starting to see, if at all, from some of those external sources, not just obviously the direct sales productivity, which looks great today. Thanks.

Well, first, thank you. We appreciate it. Second, great question. Third, it's been incredibly additive, right? I mean, I think that there are very few really big conversations that we're having nowadays that don't involve somebody like Snowflake or other partners that we have as a sort of third party to the agreement. And it's been really game-changing for us to be able to bring their products to bear fully integrated into the ZMP. Now, the Forrester stuff was really, is an accelerator to RFPs. We're seeing more RFP flow than I think we have ever seen by a lot. So not only did we make the decision to pull forward some of our hiring because we saw we had so much incremental margin being 81% on platform versus the 75% that I think a lot of people expected, It allowed us to bring in the people that we needed to handle all of the RFP velocity that we're seeing. Filling out some of these RFPs can be arduous. So we were super, super pleased to be in a position to be able to pull forward some of that hiring. What I would tell you is that the ZMP stands alone and is winning on its own. We're seeing the market come to us in a lot of ways. First and foremost, great partners in companies like Snowflake. Second, being named the leader in the Forrester Report was a very big deal. It happened in an environment where most of our competitors fell backwards, and we propelled ourselves forward. And the thing we love is Forrester's really basing a lot of that on our clients' opinions of us. It's something that's very important and something that we think of. And once again, our goal is to deliver the world's greatest products and services to our clients. And when you get the type of validation that comes out of Forrester, That is really the entry point to most RFPs for most large enterprises. And companies that might have been saying who's Zeta a year or two ago are now knowing who we are. The IPO, Zeta Live, doing deals with companies like Snowflake. be named the leader in Forrester's report. When a company like Forrester says that we are exceptional at simplifying complex marketing, that is exactly what CMOs want to hear in today's world. And quite frankly, our entire pitch around efficiency and efficacy of marketing resonates even higher in a market where people are nervous about where the economy is going, about what's happening with inflation. A number of our clients are thinking about where is the consumer's disposable income going as it relates to a focus on higher energy costs, higher food costs, higher housing costs. And they're trying to figure out how to help consumers to understand that their products are a have to have, not a want to have in this current environment. The ability to use the Zeta marketing platform and focus at people who are actively in market for their products and become top of mind for them has never been more important than it is today. And I think that's back to what Chris said. I think it's why we so handedly beat the first quarter. It's why we feel so highly confident in the second quarter. And it's why we want to continue to focus on being a company that can you know, beat our estimates and raise from there. We've always said that's our goal, and that's our goal to continue.

Thanks, David. I appreciate the great color there. Chris, maybe just a quick follow-up for you. You know, on the direct platform revenue, obviously 81% in the quarter, very strong. Can you just provide an update in terms of your expectations, how we should think about that trajectory through the remainder of the year? I think sort of heading into Q1 here, you were thinking mid-70s for the year. You know, how does 81% in the first quarter impact that? And then, you know, how does this translate, I guess, into your ability to expand gross margins for the remainder of the year? Thanks.

I think we definitely, with the fast start that we had, I knew it was at the higher end of what even we were expecting internally. I would now expect the direct platform mix to be north of the mid-70s now. It's kind of not going out of limb to say that. But why that's given us kind of more confidence is included in the script. You also heard us increase our cost of revenue percentage, or I should say decrease our cost of revenue percentage for the full year from 100 basis points of guidance to 200 basis points. So as you see the direct platform mix go north of 75, you should expect to see the gross margins follow. But certainly our view of the direct platform mix ending north of 75 is increased. The one item to note there, Ryan, and for your peers on the phone call, part of what would not keep it at 81%, at least as we're thinking about it, based upon history being a predictor of the future, is political spend in September, October, and to some smaller extent, November, could and has traditionally been off-platform. So there's also some conservatism built into that when I talk about being just north of 75%.

Although we do feel we'll be higher for the year than mid-70s. We feel like we're in a very good place. I think we're just nervous stamping an eight handle on the front today. I think we feel good about where we are as a company. And I think when Chris talked about the scale of the new deals we're signing, the duration of the new deals we're signing, we've always said our goal was to continue to grow gross margin. We're saying we're going to grow it faster than we originally expected. We've also said that our goal was always to get to 80-20 platform-wise. I think in the out years we'll be able to even do much better than that. But I think right now we're feeling very good about the metric.

Thanks for the color. Congrats again. Thanks, Ryan. Thank you.

The next question is from Koji Ikeda with Bank of America. Please go ahead.

Hey, David. Hey, Chris. Thanks for taking my questions. Just a couple from me. So it sure sounds like, and looking at all the metrics and all the commentary, I mean, it sure sounds like the sales execution is good and definitely heading in the right direction. And, you know, thinking, I think it was Chris, you kind of mentioned on the sales capacity, you added seven in the quarter, you know, you're trying to grow mid-20s as a target for this year. So how should we be thinking about the ability for the business to potentially increase or maybe accelerate the number of net new scaled customers? I think you added four in the first quarter. So what does it take from a sales capacity or go-to-market standpoint for this number, this four, to maybe become six or eight or even 10 plus in any given quarter?

That's the design. That's exactly the design as to why we're adding scaled headcount. It's the design as to why we spend so much time measuring and even being very transparent with our investor base as to how those quota carriers are ramping in productivity. One new function that we've added that should help us continue to not just add new scaled customers, but to graduate those from the 100K to a million to super-scaled, is the combination of what is, you know, we believe we're building a world-class demand generation engine married with an SDR function that just should make those quota carriers more productive. So we don't want to get ahead of ourselves, but it's certainly designed for why we're adding sales headcount and why we believe, you know, in the Zeta 2025 should be at least a $1 billion number and not just, you know, not just sitting at the billion. David?

Yeah, and Koji, just I mean, I think it's important to note that seasonally, we expected our scaled customer count to shrink into Q1. So the fact that not only did it not shrink, but it grew was an incredible sign of how the business is performing overall. and we're very excited about the prospects to continue to grow that scaled customer number. The other number that I think is really exciting is the super-scaled customer number. You saw that go up fairly dramatically year over year, and that's a number that's, as I said earlier, we're seeing proof of concepts Skip the scaled customer metric and go right to super-scaled contract or super-scaled customer in this current business environment.

Got it, got it. No, thanks for that. And my follow-up is actually on the acquisitions that you announced. I did see a press release for one of them, Archimax. So I guess for that one specifically, how do we think about that acquisition and its ability to drive new or maybe enhanced 1p profiles and then i missed the second one maybe i missed the press release or could you talk a little bit more about the other one you know what what does that bring to to the zeta platform and then just lastly on the acquisitions any any sort of contribution uh from the acquisitions embedded in the 22 guide thanks guys for taking my questions

Yeah, so great, great questions. First, let's start with Archimax, which is the one we closed in this quarter. We did say, although it was brief, that it'll add $3.5 million to the estimate this year, which we are bringing up to $553 to $563 million. So it's not really adding a tremendous amount. The other one I think you're thinking of, Koji, was in Q4, which was APNAS. Those deals... are what I would consider tuck-ins. Apnis was a similar size to Archimax. What I would tell you is that we were able to pick up millions of double-opted-in consumers in some very interesting verticals to our data cloud. And what we're really trying to do is continue to build out that data cloud around new categories and additional customers and both of these platforms do exactly that we also were really excited about the management teams in both of those companies just really really great people that we were very excited to bring on to the team so you know i just feel like It's important to note that they're not adding a lot of revenue, but they're adding great data, they're adding great technology, and they're adding great people. And they're going to be very additive to the data cloud as we extend into new verticals and we want to offer additional data sets to existing customers.

Got it. Thanks, guys. Thanks for taking my questions. Thank you, Koji.

Next question is from Arjun Bhatia with William Blair. Please go ahead.

Perfect. Thank you and congrats on a great Q1, guys. I want to touch on the new scaled customers and actually the super scaled customers. It certainly seems like there's a lot of momentum there. When you look at these new customers, do you get the sense that more customers are making platform decisions and buying decisions? for Zeta as a whole up front as opposed to saying, hey, maybe I'll wait a year, maybe I'll wait two years. It certainly seems like there's a lot of momentum, but we'll have to get your perspective. And I'm curious, if there's anything on the product side that you would attribute that strength to, whether it's the data cloud getting more advanced, like you said, or the headwinds from the market in terms of third-party data, any color there would be helpful. Sure.

I think you just really nailed it. As we're seeing the large tech companies really battling it out, you've got all of these guys removing all of their identifiers that is hurting other people in the marketplace. It is causing marketers to need to make decisions And as they look at the efficacy of our platform, which as we have said till we're blue in the face, does not require the IDFA and does not require a third party cookie to measure or identify people, we're seeing sales cycle timing shrink dramatically because they're losing efficacy on a number of platforms, they're looking for platforms that continue to deliver that. And I think that's created a little bit of a crisis in the ecosystem And as I was sort of joking the other day, as the tide has gone out, our ship stayed right where it was. All the other ships seem to have gone down, and that has played very, very well. So when we can sit down with the CMO we're able to talk about that efficacy, compound that with the efficiency, right? Our ability to deliver 10 to 1 on our software and data sales to them on a return on investment, they're just not able to really get that anywhere else. Then you've got that Zeta is becoming more of a known brand. And quite frankly, we've spent a tremendous amount of time and a tremendous amount of energy focusing on making Zeta part of the narrative. And when Forrester names you number one, when the company now trades on the New York Stock Exchange, when we hosted Zeta Live and had some of the world's marketing luminaries come and speak and work with us, Those are things that allow enterprises to make faster decisions around their platform purchasing. And we're not just seeing more RFPs, we're still closing, you know, last count, over half of the RFPs and engagements we're being invited into. We're doing it faster. And I think that's one of the reasons you're seeing the growth rate where it is and why we feel so confident that we can raise guidance for the quarter and for the year.

Yep. Perfect. No, that's very helpful. And then one more, if I can, on the Dunbar-Ed Street partnership, I was just wondering if there's any update you can provide on the traction that you're seeing on the B2B side and with that partnership in particular?

You know, D&B, which is an incredible company, great partner, we're really excited about the partnership there. We're not actually at liberty to sort of talk specifics there because of the non-disclosed agreement with them, but what I can say is we're seeing a lot of deal velocity through them, and they've just been an incredible partner. So our ability to talk to their customers has been very powerful. And back to one of the earlier questions, right? So you've got Snowflake on one side, you've got Forrester on another side, and then you have great channel partners like D&B on the other one.

Understood. Perfect. Thank you, and congrats again. Thank you so much.

The next question is from Elizabeth Porter with Morgan Stanley. Please go ahead.

Hi. Thank you so much for the question. I wanted to follow up on your comments about extending the data cloud into new verticals. And how do you guys think about the opportunity to drive a vertical kind of cloud approach with solutions specific to these verticals, and if that's something that you're Considering. And then second, as a follow-up, nice uptake in the ARPU, just hoping to get some color on how much is broadening use cases versus increasing usage and existing channels are just landing with larger logos now that you're having momentum in this super-scaled level. Thank you.

Two amazing questions, Elizabeth. Let me start with the data cloud vertical integration. I think that what we've seen, and I think we've said publicly that no vertical makes up greater than 13% of our revenue. I'm sure somebody in the room, you've got a cast of thousands here, will keep me honest on that. But what we've really found and what we really believe is the ability to stand up vertically focused data clouds is a game changer for the clients. And The ability to build out vertical integration, not just of signals and attributes, but of consumers who are directly interested in those verticals over long periods of time is the next step level in what we're thinking about doing. And we've got some big news coming soon around that. We're very focused on it. And it's something that we believe... will allow us to continue to accelerate growth as we focus on the verticalization of the data cloud. Chris, do you want to jump in on ARPU?

Yes, so really quickly on ARPU, Elizabeth, really driven by two different factors. First, as we noted up front, the difference in ARPU between the 100K to a million to the super scale of a million plus is about 10X, so 98K versus 981K. So as we continue to move those customers to the right, that is naturally lifting the ARPU. Two other elements are also driving it. First, signing initial contracts at a larger value, and we've seen that now for three straight quarters. But also, to your question around is it more use cases, more utilization, or more channels, This quarter in particular, I would highlight it being more channels. We talked about for the first time more than half of the customers using more than one channel. If you look at that two-channel cohort, it's now almost a third of all of our scaled customers. That's up from mid-20s last quarter. So really happy with the channel expansion, but a really big opportunity still in front of us on just growing more of what's flowing through the existing pipes and adding more use cases.

Great. Thank you so much.

Thanks, Elizabeth. The next question is from Ryan McWilliams with Barclays. Please go ahead.

Thanks for taking the question. So with cookie deprecation from Google coming in the second half of 2023, this has been a point of contention for marketers in our conversations, you know, even beyond IDFA changes. With the longer sales cycles in Zeta's business, I'm sure you're seeing RFP activity today on this, but David, would you expect as we get closer to this deadline, you could potentially see stronger RFP activity for Zeta as we get towards the end of this year?

Yeah. I mean, we totally agree. I mean, the truth of the matter is there are some clients moving quickly on this. And I do think sort of the elimination of the IDFA and the sort of efficacy issues a number of the larger platforms are dealing with has led to some accelerated RFP opportunities. But to your point, I think the closer we get to the elimination of the third party cookie, which is going to be a game changer from an efficacy perspective, the higher we will see our RFP velocity go. As you know, right, there's always a big difference between knowing something's coming in a year or two and knowing something's coming in a few months. And we feel like our platform is really well positioned, and we continue to make major investments into innovation around making sure we stay the leader in this category because we believe it's going to be a very big one yet to come.

Perfect. Yeah, nothing drives spend like a deadline. And then, Chris, just on guidance, you had a larger raise to your full-year revenue guide compared to your first quarter beat. That kind of makes sense given a lot of the tailwinds you talked about. Just, you know, as you've had more conversations with customers, any update on your commentary from last quarter on what midterm election revenues could look like for Zeta at this point?

No, we continue to hold to the 25 to 30% of what we did in 2020. And again, mostly directed in the third quarter, latter half of third quarter, beginning of fourth quarter. So that would imply right around a million or so in the third quarter and three-ish and change in the fourth. Yeah.

Oh, no, sorry. We're all playing around with the mute button here. All I was going to say is that we continue to believe that political will be a strong tailwind going into the back half of the year.

Appreciate that. If I could squeeze in one more. Chris, just any seasonality we should watch out for in the second quarter?

No, I think in the last earnings call, one of our supplementals, maybe like slide 22 or something like that, we showed the distribution of three years of history of how much revenue appears in each quarter. It's probably a pretty safe bet to follow again.

Appreciate the color. Thank you, guys. Thanks a lot, Ryan.

The next question is from Jason Cryer with Craig Hallam. Please go ahead.

Thank you, guys. Just one for me. So as we look out to the macro, it seems there's some increasing concern over the durability of things like programmatic advertising. We've obviously talked about that as a channel you participate in. So curious, if we see a pullback there, what would be the fundamental exposure? And then what other channels or opportunities could be created where you could offset that?

So great question, Jason. Let me say that we don't generally just run programmatic. We're using our data cloud to target it. So we've seen an acceleration to our programmatic business. We also have seen a massive acceleration to our CTV business. So think about the fact that most people running linear TV continue to run their ads alongside of a show that they think might have the demographics that they're interested in. but a very large percentage of the people watching that show, some people would estimate 90% or more, are not actively in market for those products. We can, on a deterministic basis, target a CTV ad in the exact same TV show that somebody is watching on linear in CTV or OTT, and you're taking 70% or 80% of the expense out of the targeting. As I think I've said a few times, we truly feel that the current environment where we're seeing greater inflation, we're seeing the very large tech companies sort of battling it out, and we're seeing the worry of slowdown is driving customers to use our platform at an accelerated pace because they're looking at the efficiency and the efficacy of that platform. That includes our programmatic platform, which is heavily focused on deterministic targeting.

Chris, did you want to add to that? Jason, we also wanted to make sure that we were preparing our guidance and being responsive to one of the earlier questions around confidence in the numbers. We look deep into sales cycles on the multiple solutions and use cases that we give. Not only do we not see a change from the last quarter to... two quarters ago, three quarters ago, and four quarters ago, but even quarter to quarter, over the last 90 days, no change in sales cycles, durations. And as we talked about in our commentary up front, more and more of the revenue continues to be recurring in nature, and that's, again, an outcome of the fact that we're signing more multi-year, seven-figure deals with longer contract durations. So we feel really good about the visibility and the durability of that revenue right now.

All right, appreciate it. Thank you.

The next question is from DJ Heim with Canaccord Genuity. Please go ahead.

Hey, thanks, guys. Chris, you sit here today and you look at kind of how quickly direct revenue has scaled. Does it make you think like, hey, 20% plus EBITDA margins in 2025 could be 25? Or is it early to jump there and maybe like, you know, hey, these gross margin savings now are going to be kind of funneled into go-to-market efforts? How do you think about kind of how quickly that's transpired and how it feeds into long-term targets.

Yeah, 90 days into Zeta 2025, it's tempting to be more optimistic, and for the first time, David's probably kicking me under the table.

Right, because it's two and a half years into 2025, but keep going. 90 days since we announced it.

Look, there's a reason why we say at least, but without a doubt, we're ahead of pace.

Yeah, yeah, okay. One of the questions I get a lot from folks who are doing work on the story for the first time is around disgust, right? And obviously it's an important part of the data asset that you're building. Can you give us any color on like operating metrics for that business? Is it growing? How do you take it to market? What are retention dynamics look like? I get it a lot. So I figured I'd give it to you guys.

Yeah, no, it's a great question. I mean, I don't have the exact operating metrics in front of me. I can tell you it is growing nicely, which is the reason last quarter we were able to say that our opted-in data in the United States went from 225 million to 235 million. That infers that Disqus is growing, and we're seeing Disqus not just grow, we're seeing it continue on at greater than 90% of global market share for commenting in publishing platforms. I also think it's really important to note, because this is one of the things that I get an aha moment when I say to somebody looking at the story, DJ, Not one of the 5.2 million publishers who use our platform makes up even 1 tenth of 1% of the traffic that is driven to the Zeta Data Cloud. So it's really well distributed. And by the way, it's simply the anchor tenant of what is greater than 20 data assets that sit in the Zeta Data Cloud. You look at Archimax, by way of example. You look at Apnis. We're driving millions of opted-in consumers through those platforms. And as we look at growing the data cloud, we'll continue to look for additional sources of data. But Disqus has no concentration. Disqus is growing nicely. It is evidenced by the growing of the opted-in consumer group from 225 to 235 in the U.S. and from 240 to 255 globally. And that is a trend that we really expect will continue. And as you think about content on the Internet, it continues to grow at an exponential pace. We are literally embedded into almost every publishing tool for every new website that stands itself up. It's just, check a button. Would you like commenting with that? So literally, it drives engagement for the publisher, whether they are a top 1,000 global publisher, of which 70% use Disqus, or they are a blog operating out of somebody's basement. The reality is millions and millions of sites sign up for Discuss every single year.

Yep, yep. Super helpful caller. Thank you, guys. Congrats on the quarter.

Thanks a lot, Jay. Thanks, everyone, for joining the call today. Operator, we'll turn it back over to you.

Thank you. As there are no further questions, this concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.