ACV Auctions Inc. (ACVA) Earnings Call Transcript & Summary

We have with us Investor Relations for ACV Auctions. Actual Cash Value, that's what that stands for. It took me about probably 4 months into the IPO process before I even knew what that meant.

So Actual Cash Value Auctions. Tim, why don't you jump it off. You guys have a relatively new IPO in those cohorts from '20 and '21, where you know kind of got lost in the more recent COVID macro noise. Can you -- so a lot of people would look -- probably, it would help for people to know what you guys really do. Can you just go over the business and give a basic introduction?

Sure. Happy to. Thanks for having us here, Nat. So ACV was founded in -- basically in 2016 with this idea that the automotive wholesale market, which is a big market, was being served primarily through physical auctions, right? A very inefficient process that had been for decades the way that automotive dealers acquired and sold used car inventory. The dealer -- 1 of the 2 founders was a dealer who said there's this thing called the Internet, right? And wouldn't it be interesting if we actually levered the Internet to actually sell to -- from dealer to dealer used cars right? And so the mission was really to create a marketplace with 2 important things: one, a level of trust; and secondly, significant transparency, right? These are complicated assets, as you know, vehicles are extremely complex. And so they set out to develop a very simple, easy-to-use marketplace underpinned by a significant amount of technology, creating what is today really the gold standard condition report. All of this being fed by this information where our inspectors go out, they do a deep dive into the vehicle. They come out with 150 data points. We have a bunch of patented technology that we use. But it's effectively creating a very transparent marketplace for dealers to transact without having to go to the physical auction. And so we've, over time, gone from $1 million of revenue to this year we're closing in on $460 million. We've got over 20,000 dealers that use our platform. We're the #1 player in this space. And frankly, if you look at some of the information we shared at our Analyst Day about penetration and wallet share, there's a lot of white space left. I mean this is still fundamentally very early days for digital transformation of dealers. So we're really excited about that opportunity.

Now help me out on why it took so long, and I will give you a little background in. 1999, I wrote a report called the B2B evolution where I said, look, everybody is talking about the Internet, may be overhyped, but it's underhyped for its B2B transformation capability. And I was spectacularly wrong. It took 20-plus years before you started to see any real transformation in these businesses. Why do you think, still today, the vast majority of used cars transacted between dealers are at Manheim or ADESA or other smaller physical auctions where the car drives up is left running for 60 seconds. And one of those guys with that stupid barker auction guy, give me [indiscernible], is going. Why is that still happening yet? Why did it stay that long?

It's a great question. I think fundamentally, like anything in a digital transformation, it does take time and you have to build a couple of things. One, you have to build the confidence, as I mentioned earlier, about this trust and transparency, confidence that you can sell an asset for what you think is an appropriate price and for it not to have to be at a physical auction. Buyers on the other hand have to be able to be confident that they can get access to the inventory they need, and that the vehicle that they're buying will, in fact, show up in the condition that they wanted in. So it takes time for dealers to start to pull back from their old ways of doing things. And part of it is, naturally, as the marketplaces themselves grow. So for instance, in the Northeast where we started, you take the Jersey Shore, for instance, at one point, New Jersey was one territory. It's now multiple territories for us. We have -- South Jersey, for instance, has -- we have 70% of the dealers in that territory use ACV. We have, at this point, still, even after all these years, only about 50% wallet share. So even there, where we've been for a number of years, there's still some usage of other channels, whether it's a wholesaler or a physical auction, but they're doing 12,000 units a year, right? You multiply that times 160 territories, you're upwards of 2 million units already. So I think it's partly just a network effect. I mean, ensuring that you have the amount of inventory required to satisfy the dealers in the area that you can basically give them access to inventory up and down the ASP spectrum, right? So from a $3,000 car to a $150,000 vehicle. Today, they still -- even in our most mature territories, some of our dealers still augment what they buy with some of these alternatives. We think over time, this market will naturally gravitate to digital, right? But it will just fundamentally take that time. And as we build these networks out and the inventories grow, the number of buyers beget sellers, the number of sellers beget buyers, it's just going to naturally evolve into a broader regional marketplace. I think part of the other thing too is that some of these physical auctions are in and of themselves quite large, right? So they do attract a decent regional presence. But over time, you see the physical auctions do start to shut down, consolidate. And ultimately, we think the industry as a whole is going to turn to digital over time.

Can you walk through the basic numbers and total market opportunity in units? And then the kind of competitive landscape around it. Where is it now? And where is it -- and how many units are we really talking about?

Yes. So we break -- the TAM that we address is basically 4 markets, the largest of which is the dealer wholesale. That's about 11 million units pre-COVID, and about $7 billion in revenue, if you basically attach the fees that we get on buying and selling the car along with transportation and ACV Capital, that's about a $7 billion market. Then beyond the dealer marketplace, there's a commercial wholesale business that's about 8 million units or was, again, pre-COVID. Commercial has been an area that's been hit extremely hard by COVID. The off-lease category, in particular, has really dried up because consumers are keeping many of those vehicles.

Because they can't find new ones.

They can't find new ones and the residual value was so good. Nonetheless, we will start to tap into that commercial. We have a couple of small commercial arrangements today. Over time, we are investing in that space so that's another, call it, 8 million units. And then there's -- one of the more interesting sort of developing markets is this peer-to-peer market. This is consumers selling to other consumers, whether it's through local classifieds, through Facebook, Craigslist. That's about a 10 million unit annual number and it's a market that by and large franchise dealers hadn't really taken the lead around going after consumers directly and saying, "Hey, even if you don't want to trade in or buy a new car, we will buy your car from you, right?" That's a very different motion than they are used to. But partly because of the lack of new car inventory over the past year or so and some of the e-commerce players and even folks like CarMax that had shown a lot of success going after that consumer market. Franchise dealers really started to wake up to this channel. It makes all the sense in the world. They spend $30 billion to $40 billion in local advertising. They have some of the best real estate in any of the local markets. They run adds all the time, why not carve off a little bit of that advertising and say, "Hey, look, we'll buy your car, come on down." And so we've got some products that we've been enabling dealers to use, to create a highly differentiated experience for the consumer. We've just acquired a couple of other companies that we're going to be rolling that technology out as we speak to enable dealers. So today, as I mentioned, the biggest part of that market where we are fundamentally focused is the dealer-to-dealer market, which was about 11 million units. We think that market has come down because of the supply challenges in automotive to around, call it, 9 million units today. And within that space, about 85% of the transactions are still physical or wholesalers, right? They're not kind of pure digital. If you add up ACV, you add up cars, properties, take a stab at Manheim Express and what they're doing from a digital perspective and some other smaller players, you get to maybe about 15% of the market. So there's still an enormous amount of white space.

And in that 15%, what -- where do you think you roughly fit?

So we're #1. Our best estimate is that the #2 player is probably about 50% smaller. So we've got a nice lead and continuing to gain share. We share each quarter a view of what we think the market -- the wholesale market has been doing from a unit perspective. And every quarter, we just gain another 300, 400, 500 basis points of incremental share. And that's coming primarily from, obviously, the physical auctions and other kind of dealer-to-dealer channels.

And the recent sale of ADESA from KAR to Carvana, and Carvana expressing little interest in that side, the actual physical auction business, though they didn't say they would shut it down. They just -- that's not why they bought it, at least according to them. Is -- does that hint to an overall change that you think is this is a rapid -- it's KAR basically come to agree that this is not going to be a physical auction business?

So it's an interesting point. I think at one point, they would have made the case and as does Manheim today that having that sort of hybrid model is a strength. And I think to a certain extent that may be true in the early stages of this digital transformation. Well, clearly -- and Carvana came to KAR with a very attractive offer, and they now can focus on being kind of purely digital. What it does do, for sure, is create a very exciting opportunity for ACV to go knocking on some doors and say to the dealer, "look, do you really want to support those folks over there, right?" Carvana is obviously one of the biggest competitors, right, out there. And so we have seen some activity on that front. We think it's going to create a very interesting long-term opportunity. And who knows at what pace that business ultimately moves away, but we're pretty confident that it's going to effectively move to either other regional physicals in the near term. But for sure, gives us an opportunity to take share where we hadn't had that opportunity before.

Great. Going back to that, you said around $460 million in revenue this year that you've grown to and it's been an impressive growth since 2016. Like can you walk through how that revenue -- where you get those revenue, where the buckets are? And what are the real drivers going forward?

Sure. So the 3 -- we break the revenue to 3 basic buckets. One is the auction and assurance fees that we charge to both the seller and the buyer. That's about 60% or so of the revenue today. That's driven really by unit growth fundamentally and the amount of ARPU that we charge per -- for the seller and the buyer, as well as that GO GREEN assurance product that we sell to the seller and that covers the condition of the vehicle. That will grow. That basically levers with unit growth, fundamentally. The second bucket, which is about 35% of our revenue this year is marketplace services. Those is the combination of ACV Transport and ACV Capital. ACV Transport was a business that we started a number of years ago. At the time, it was kind of basically a low job board, kind of a low-tech way of getting transporters to connect to the buyers. Since then, we've transformed really that business primarily from investing in technology to a very, very robust transportation marketplace. We don't own any of the assets. It's an asset-light model. But we basically allow -- we have 3,000, 4,000 transporters across the country. We think we're probably top 10 transporter of vehicles already in the U.S. 50% of those transports today are automatically dispatched, right? So there was no human intervention at all. It's -- so that business grows with attach rates to units. We're already today over 50% attach rate, which was our original 3-year goal. We achieved it in about 3 quarters. So that's probably about where we're going to kind of manage that attach rate. The big focus for transport is going to be on driving leverage around margins, right? That today is a business that we run effectively around breakeven. We use it as a little bit of a [indiscernible] leader when we establish a brand-new territory. We'll go in and come in a little bit below market. Over time, we expect that business to go from basically breakeven to about 15% from a gross margin perspective. Today, in our more mature territories, we do have territories that are running in the low double-digit gross margin. So we know that business can scale. ACV Capital is the newest of the bunch. That is basically short-term financing for independent dealers, floor plan as it's commonly called. That's an area today that is growing very rapidly. It's a very profitable business. It's about 90% gross margin. Our attach rates as of Q1 were in the kind of mid-single digits, call it, 6%. Our model for 2026 has that attach rate getting to around 25%. So not a big leap, but it's a very attractive business. The third bucket is, what we call, SaaS and data services. Today, that's a relatively small part of our revenue, call it, 5% or 6%. There is a collection of SaaS products and data-enabled services that we sell to dealers to help them drive more and more digital transformation. We acquired MAX Digital, which is an inventory management system, SaaS-based company that's growing quite nicely. It's a great product. All of these businesses are pretty profitable, as you can imagine. So that's part of our kind of underpinning our margin expansion over time is for some of these higher-margin businesses like capital and the SaaS and data services to grow as a percentage of the mix of the business.

So all of your businesses are very, again, asset light. You don't take any position. Though you're -- you've been tied to other online car companies, who are, one, B2C and not B2B and are asset heavy. Just to put it to bed, what is your cash burn level and your expected where you should be in your liquidity level currently? Where do you think you're going to cross into that profitability line?

Yes. So we're very fortunate, as we were chatting earlier about the timing around our IP and able to raise such capital. So we're in an enviable position today where we have over $550 million of cash. Our goal is to get to EBITDA breakeven, effectively exiting 2023, so the end of next year. We will consume cash this year. But needless to say, we're not in a position, to your point, about being very asset light. It's not a capital-intensive business in any way, shape or form. So we're in extremely good shape relative to our liquidity.

All right. Great. Well, going to the other crazy part, what's been happening to your -- to this industry and have been affecting you guys as well. The car industry saw some of the craziest changes because of COVID and the pandemic and the supply chain. Walk us through what happened in the last couple of years and how you see it unfolding over the next couple.

Yes. It really has been. And for a point of reference that our CEO, George, likes to say that for the first 5 years of ACV, it was actually extremely predictable and boring. The market itself was just extremely stable. And by the way, during recessionary times, the used car market tends to be pretty stable, right? And if you look through the past 4 or 5 recessions, so we get a lot of questions, obviously, from investors about the potential risk for economic slowdown. The used car market is pretty resilient, which is great. But certainly, the 2 -- so really to frame up what happened in COVID relative to the automotive market, was really both the supply and demand situation. On the supply side, when semiconductor -- the issue around semiconductor production really got acute, that drove new car inventory down significantly. In fact, the first half of 2021, new car inventory was still in pretty decent shape, right? And if you think about our business, an important element of the wholesale market are trade-ins on new vehicles sold, right, 70-plus percent of vehicles that are purchased, whether new or used, come with a trade. So when new car sales started to decelerate particularly in the back half of last year, that put pressure downstream on the wholesale market. What you saw was a dramatic pullback in inventories. The average days outstanding was historically 70, 80 days dropped to 20 days, right, across franchise dealers at the end of last year. So by default, what happened was we had a lower level of, sort of, inflow supply into the wholesale market. And you start to see that in the data that we share around the overall dealer wholesale market contracting a bit in the back half of last year. On the flip side, because there was such a lack of new cars available, used car demand was as crazy as it's ever been. I mean you saw the unit growth was quite strong for used cars. More so, it was reflected in ASPs. I mean the Manheim Index, which is a widely followed index, was up about 50% in 2021 and it ended the year with used car prices up about 50%. Now what's important to understand about that dynamic is that -- and you're aware of our fee structure and how it works, our sell fee is fixed, basically. So the only variable component of our fee structure is on the buyer side, and that scales with the ASP. Heading into the pandemic, our fee structure tapped out at a vehicle cost of $15,000. And that at the time seemed to be perfectly fine. Our GMV per unit was $6,000, $7,000, heading to $8,000. We certainly transacted vehicles above $15,000, but it was by no means a big part of the mix. Now fast forward to 2021, that changed dramatically, right? Not only did prices go up, which drove GMV per unit up, but the mix of vehicles on our platform went significantly upmarket. And so we had our GMV per unit went up 67% in 2021. About half of that was pure pricing, but the other half was kind of this mix effect. And we think that mix effect is going to be structurally permanent, right? We're still today transacting vehicles that are well north of $15,000. So back in December, we decided to raise our fees, and take the cap from $15,000 to $50,000, right? So this year, we're going to be benefiting from that increase in fee structure even as we expect used vehicle prices to start to come down. So fast forward to today, it's interesting. It is still -- there's still a hangover, for sure, on the new vehicle supply side. We are seeing some pockets of new production picking up. Like Hyundai mentioned over the weekend, they're going to be kind of back to normal within a few quarters. But broadly speaking, we think it's going to be closer to the end of the year or early the following year where new car production is really going to get back to that kind of healthy, healthy clip, which will be great for us. And I think secondarily, as I mentioned on the used car pricing side, that's certainly been an overhang for the broader used car retailers, this notion that they over earned. We're not in that category, right? As I mentioned, our GMV per unit was up 67%. Our ARPU was up 15% last year, right? So we didn't benefit significantly from that massive shift in pricing. And so on the downside, as prices start to moderate, we think that fee increase is going to help kind of offset a pricing moderation. But it's certainly been an interesting time in automotive, for sure.

Now taking a straight cut of the price, you would have gone with the market and you might have over-earned during that period and you might be facing that, now you haven't done that. But now that the prices are so much higher, I know that you have raised prices but still are keeping that same basic structure. Would the market not react well to a basic car cost more, you pay us more. It's why not one-to-one? Is that structurally not how the market works?

Yes. On the fee side of things, look, we have to be cognizant of a couple of things. One, there are competitors out there for sure. We're still -- even with that fee increase last December, we're still cheaper than the basic physical auction fee structure. And that's a good place to be because we're still in market share gain mode, right? We still want to be an attractive value proposition. We're now probably more a little bit in line with some of the other smaller digital peers out there. I think over time, there's perhaps room to continue to raise fees. But for the time being, we're pretty comfortable with where we are right now, and we'll just go out there and continue to gain share.

And that mix shift you saw towards higher-end cars that you think is probably permanent, was that due largely because dealers said, "Oh, this is the new way of doing things. We'll sell our cheaper cars on this platform and then send the higher end cars to a Manheim auction?" Or -- yes.

For years, that was really kind of the market motion. It was -- the higher value cars often went to physical auctions. For -- I guess, the adoption reason around dealers wanting to be in front of the vehicle. If they're going to pay $40,000, $50,000, they're going to want to see it. What happened certainly last year was because of our condition report and because dealers understand that they can trust a $50,000 or $60,000 or $70,000 car that they're going to get what they're bargaining for, they started getting more and more comfortable transacting. The other interesting dynamic that took place last year was that franchise dealers who historically were largely the sellers on our platform -- so think of it as independent dealers, buying franchise dealers were the seller, they were the input into the system. When we first started, it was effectively 100% that way. What has transpired over the past 12 to 18 months though is that franchise dealers are now becoming active buyers, right? They needed inventory. And so it's been kind of this network effect where they're putting more and more of their high-end inventory on our marketplace and, in fact, buying. There are about 20 -- 25% of our buying today is from franchise dealers. That was effectively 2% a few years ago. So it's been really an interesting dynamic. On the other side, independents historically did not sell on ACV. We created a category called Certified Independents. So these are -- think of these as relatively larger used car dealerships. They are now about 20% of our seller volume. So it's really been, I think, a combination of the type of inventory, the trust around the marketplace itself and the sort of mix of buying on franchise and independents that's driven that structural change in our market, which is great.

You mentioned how your pricing is similar to the other smaller players in the online market. Can you walk through what the real competitive moats are there? And whether or not in the end you would have pricing power and how this market should develop with competition? And can create an auction, that's...

Certainly, I mean, at the core of it, what really creates a competitive moat is the size and vibrancy of the market itself, right? The -- technology aside, the bigger your market, you become the place to effectively go. And so that just sort of takes time. And as that transpires, you become the de facto standard from a digital perspective in any particular region. But beyond that, as I mentioned, we have invested a lot in patenting technology that really underpins that condition report, the processes that we use to do that. Our inspectors are our own employees. They're full-time employees with benefits. It's a great role. They're highly trained. We enable them with technology to listen, record and analyze the engine sound, to try to pick up issues that might be transpiring there. We have a virtual under carriage, so -- you can call it the virtual lift. So instead of having to put a car up on a lift, they can basically take thousands of high-def pictures. You can pick up frame damage, rust, catalytic converters being stolen. So we have a really strong, strong lead and continue to invest in that kind of inspection technology capability. We talked about APEX, which is a new IoT-enabled device that's being rolled out as we speak. That creates about 10x more sort of data points. So we think that's fundamentally a key differentiator is that we will -- we have and we will continue to have the single best condition report and amount of data for dealers to be able to make the right decision. Ultimately, a dealer -- buying dealer, for instance, they're only really trying to assess one thing, which is if I look at this used vehicle, what's it going to cost me to recondition it and then flip it and make a good margin, right? So they have to understand the condition of that vehicle. They think in many cases today that they can get a better sense if they go to a physical auction and see it. What they do begin to understand over time though is that once you understand and be able to pick up on all of the different flaws, they'll be able to better accurately come up with what that sort of reconditioning cost is going to be. And so that creates that competitive differentiation. Our buyers have more confidence, they can make a better margin. Our sellers, by default, get a better price for the car they're selling. I'd say from there, the other piece that's been important for ACV from a competitive perspective has been our investment in other technologies that create a deeper strategic relationship with our dealers. We're not just an auction anymore, right? With tools like -- marketplaces that we rolled out last year, programmatic buying, MAX Digital, we're now engaging at -- in dealership, some of the largest dealer groups. Today, we have 3 of the top 5 dealer groups are using ACV private marketplaces solution. That's a whole different story. I mean, 4 or 5 years ago, we were dealing with basically the used car managers, right? Those are the person -- people that make the decision about what they're going to do with wholesale. We're now going in and meeting every day with the principles around these large dealer groups and becoming a trusted partner. At the end of the day, what our mission is, is to really become the digital partner for dealerships. We do not fundamentally think the dealership -- franchise dealership market is going away any time soon, right? There's a lot of sort of noise out there about franchise dealers being dis-intermediated and so on. But fundamentally, they're providing services, right? They really are providing a significant amount of value to the consumer. So I think that's really fundamentally what's going to keep us with that competitive moat is build our own technology, increasing our value, driving more solutions into the hands of our dealers and just becoming more of a strategic partner.

Those franchise dealers also have kind of outsized political power in their states and regions.

They do indeed.

Yes, and they hold on to that. One thing on the franchise dealers though, a lot of the auto companies, yes, they've had supply constraints, but they've also had really great profitability. They're making less units. They're making a whole lot less configurations. They're holding these cars for a lot shorter period of time. And I think they kind of like that profitability. These dealers are set up to have x number of cars on their lots. They have big lots and those lots got emptied. So now that there would -- and even as they fill up a little more with new cars, are they ever going to get to the level where they're -- where that Mercedes dealer is going to take that BMW trade in and say, "yes, that's brand destroying. I'll sell that car on ACV." Or has the world changed a little bit because Mercedes isn't going to give them so many cars that they still want to keep that BMW.

It's a great question. I do think what we've started to see, and it's a little counterintuitive, but in the first quarter, we measure something called listings per dealer. So basically, how many listings are we getting per dealer across our network. And that number, generally speaking, has gone up quarter after quarter for 6 years. And the only 2 quarters that that didn't necessarily happen was during the last 2 quarters of 2021 when we saw the supply constraints start to come through the market. And so we saw it actually tick up again in Q1, which was great. And that wasn't because new car production all of a sudden turned on. Something changed in the market, right? We had franchise dealers giving us more wholesale. Part of the theory, which I think is kind of interesting, is that with consumer demand softening a little bit, there's certainly some concerns around prices and inflation obviously coming through. So as consumers are starting to get a little bit pickier, we're seeing franchise dealers not keep these cars that they kept last year and say, "you know what, I'm not going to sit on this. Prices are starting to drop a little bit. It doesn't -- it is brand destroying, to your point. I'm not going to keep that BMW. I'm just pushing it into the wholesale market like I've done for 30 years." That will be a very interesting dynamic to watch over the next few quarters. It could very well be a case that the wholesale market starts to benefit from that motion. Because last year, Mike Waterman, who is our Head of Sales, he pulled up the Penske website at one point and said, "look at their used car inventory." And he filtered 7 -- I think, 7 years and older, and there were thousands of vehicles being sold on Penske's website that were 7 years, 100,000 miles. He said 2 years ago, a year ago, you'd never see these cars there. So they were literally keeping vehicles that were traded in. Even if they had 7 years old, 100,000 miles, reconditioning them and selling them because to your point, they have nothing to put on their lot. When that dynamic starts to go away, which kind of appears it has, that's good for our business.

At least for a period of time. Now I know this is put on a future hat. If Ford just says, "I'm not going to make as many units ever again." And those Ford dealers have 500 spots on their lots. Are those dealers -- we go past this time of a consumer may be weakening and the used car prices get back to what's a normal Manheim Price Index. At that point, are those dealers going to say, "we've got too much land for how our business model is built because Ford doesn't want to give us as many units," or -- in which case, they keep more? Or are they going to still say, "I don't want to have that Chevy on the lot."

Yes. It's a great question. I think, by and large, they are going to be more, I think, brand sensitive. It does though beg the question, will these franchise dealers, which we've already seen in some cases, really embrace the used car model. We often tell some franchise dealers, you want to become CarMax. I mean look at the -- they are an incredible engine of consuming vehicles. They get 60%, 70% of the vehicles from -- directly from consumers. And they have a massive wholesale business on the back end. It's a very interesting model. So we think that in some cases, franchise dealers give their used car business as sort of a secondary part of their overall profit engine. It happens to be one of the most profitable parts of their business. So perhaps they could start to actually invest more in that, and that would mean probably more consumer sourcing, which we are in a great position to enable them to do.

That makes sense. One last thing I want to touch on is the opportunity in fleet and -- rental car fleets and the like. That obviously was also affected by COVID. But what's the -- what are we talking about in units? And what's the opportunity there to get into that?

So commercial -- think of commercial as about 8 million units pre-COVID. About half of that is off lease. And then the rest is a combination of rental fleet and repo. Those -- so the 2 of those 4 markets do require an ACV to have land, right? Repo, in particular and fleet, those generally, you need some sort of land to store vehicles for a period of time. Because of that and because we're an asset-light model, that's not as an attractive part of that commercial market. But off lease and rental, you really don't need land. And those are the 2 areas that we're investing in our product today to enable us to go after those, which happened to be the larger parts of the market, call it, 4 million or so and then rental is probably 1 million, 1.5 million. So we'll for sure continue to invest there. As I said, we have got some interesting business already with some regional rental companies as well as some smaller commercial consignors today. The off lease business is going to be probably in pretty tough shape for another couple of years. So it is actually a good time to be doubling down on the dealer wholesale side, but it is absolutely still on our road map and part of our longer-term growth strategy.

Great. We've just a little bit of time left. Are there any questions from the audience, jump in and get Tim? I'm not going to take another question in with 10 seconds left. We're still on schedule, and thank you very much for coming.

Thank you. Appreciate it.

Bye.