Adcore Inc. (ADCO) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to our investor update conference call. [Operator Instructions] On the call this morning, the company's CEO, Omri Brill, will provide an update on the company's operations and strategy followed by a financial review by Adcore's CFO, Yatir Sadot, of the company's Q1 2022 financial statement, after which we will answer present question and take questions from participants. I would like to take a moment to remind participants of the safe harbor statement. This conference call contains certain forward-looking statements, including statements about the company. Wherever possible, words such as may, will, should, could, expect, plan, intend, anticipate, believe, estimate, predict or potential or the negative or other variations of these words or similar words or phases have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management as of the date hereof. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and listeners should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in the conference call are based upon what management believes to be reasonable assumptions, the company cannot assure listeners that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this call, and the company assumes no obligation to update or revise them or reflect the events or circumstances, except as required by law. I will now turn the call over to Omri Brill, Adcore's CEO, to update you on the operations and strategy of the business. Omri, the stage is yours.

Thanks, Ilana. Okay. So good morning, everyone, and thank you so much for joining us today for the company Q1 earnings call. Basically, what I would like to do today in my statement is to give an overview of the way management sees the report and what should we expect moving on this year in 2022 and basically give some highlights regarding the company's focus area in this year. So a few remarks with regard to the company revenue in Q1 2022. So total revenue in Q1 2022 was CAD 4.7 million, which has compared -- declined compared to the CAD 8.6 million we had in Q1 2022. But actually, if you deduct the cost of revenue, which were a big portion of the revenue in Q1 2021, then we can see that gross profit for both years remains the same actually improved a bit in Q1 2022. And that's exactly the same trend that we started to see in Q4 2021. So again, decline in top line revenue but when we look -- when we deduct the cost of revenue from the total revenue and we look at gross profit, we see, in Q4 2021, actually an increase -- a small increase in gross profit, which means the company has given away less or lower margin revenue in extent to higher margin revenue. And basically, even though we have lost around CAD 4 million in revenue, the company is still doing the same gross profit or even better. So that's one thing to take into consideration. So that's very important as a company to deduct, I would say, the cost of revenue portion in order to see the true value the company can bring to the table. This one remark. And then when we look one layer down into the spot and we look at the gross profit, like I mentioned before Q1 2022 was CAD 2 million compared to CAD 1.9 million in Q1 2021, and it's a slight increase in revenue, although we saw a large decrease in top line revenue. Equally important, when we look at gross margins for Q1 2022, we see that the gross margins were 43% compared to 23% in Q1 2021. That represents almost 100% to 87% decrease year-over-year in gross margins. That means the company generates more quality revenue, and that's exactly where we would like -- that's the direction the company would like to take moving forward, and we started to see this trend in Q4 2021 already. Now if you're going to drill down one more step into the revenue, and then we can see that actually the 2 very important quality indicators that we spoke about in the last earnings call that interest revenue, which are higher margin revenue for us, we can still see that it's growing in 160% of year-over-year significant compared to Q1 2021. And obviously, Q4 was a bit higher, but we need to deduct seasonality because Q4 in advertising will always be a stronger quarter. And then when we look at North America revenue, which is again another quality indicator for us in terms of the quality of revenue, still, we see the revenue in Q1 2021 from North America growing almost 100%, if you need to compare it to the previous quarter in the last year. And again, if you deduct seasonality, that is the quarter correlated, then we can still see a strong increase in these 2 quality revenue streams. When we look at working capital, there was a slight decrease in working capital in Q1 2021. The main reason for the decrease is that we had affiliated investments related to Amphy in Q1 2022 so that wasn't in the report in 2021. And there was some, I would say, seasonality-related expenses basically in the migration between 2021 to 2022. Another thing that investors need to take into consideration is that historically, last Q1 was almost the lowest quarter in the year. So actually, for us, picking up as the quarter moving along. So Q1 historically is the slowest quarter. And again, Q2 become a bit better, Q3 even better, and then obviously, Q4 is where the real action is. So basically, when we look at the report, bear in mind that Q1 historically was a slow quarter for the company. When we look at the Amphy results and we need to compare it to the way they did last year, then we can see significant increase in all important parameters in Amphy activity -- related activity. So total new classes that were added to Amphy last quarter were 631, which represents almost 40% increase year-over-year. Total visitors to the Amphy website was almost 40,000, again, almost 150% increase year-over-year. Sign-ups, which means new users and students that signed up with the platform, almost 1,500, again, more than 150% increase year-over-year. And total transactions that means class booked in Amphy, up in almost 80%. So again, it doesn't matter which format that we look in the Amphy activity, we see a meaningful or significant improvement over there. So basically, if you need to summarize the Q1 2022 results and also give investors what would they need to expect next in 2022, I would highlight the following: a, Q1 2021 was a strong quarter for us in terms of client acquisition. The company announced 14 new client acquisition across all regions the company operates in. Two of them actually were big brand names, Best & Less, which is a massive brand in Australia and Candlefox again in Australia and U.K.-based operation for online learning as well. So very big acquisition for the company in Q1 2021, which obviously will start to bear fruit. So we can start to enjoy for them as they move along. Tourism budgets are back. It is something that we started to see in Q1 2022. But I assume now in Q2 2022 that it's actually picking up. And we can now fairly say that if we need to compare or to estimate the tourism budget that we reported, a part of this was activity up until 2019 or like 2019 [indiscernible]. But then 2020, 2021 were almost diminished because of COVID, then we can now say with a lot of confidence that 2022 is going to look a lot different and more close to where we used to be in 2019 where we were in 2020, '21 with regarding to tourism budgets and Adcore managed very large big brand tourism names. Some of them are Israeli travel ministry or tourism ministry, for example, that control a lot of budget. And so for us, this is actually very good -- like big news for us. Another thing that I would like to emphasize is the company took a strategic decision in the late part of 2021 that we would like to focus on quality over quantity. Obviously, for the long run, we believe we can achieve them both. So we believe we can achieve quality and quantity, but now the company decided that actually quality of revenue are more important for the company, it's 1 tier of revenue. That's why we are focusing on higher gross margin, and we can see like 2 quarters in a row that we have steady improvement in the company growth margin. Now we are meeting where the company would like to be, which is between the 45% and the 55% range for the long run. We see a steady increase in the indirect revenue stream, which again comes with higher or better gross margin. And we see a steady improvement in revenues coming from North America, which are -- decided to be a strategic reason for us. If you look further down the road in 2022, and that's very important because there was a lot of shift in, let's say, the company process and the way the reports looked prior, I would say, to Q4 2021 and the way they are looking now and when the investors are a bit confused and asking what should we expect, sorry, moving forward, then I would say the following. And we believe that Q2 and Q3 2022 going to be similar to what we saw in Q4 and Q1. This means we're going to continue to see a decline in cost of revenue because the company is going to focus more on quality revenue. And we can see -- we believe we can see like an improvement in both gross profit and gross margin as well. So similar trends for sure, we say in Q2, but probably also into Q3 as well. Q4 2022 will compare better actually because that's going to be the first quarter that we can compare apples to apples. So that's the first quarter that we can say, okay, we shift strategy and Q4 2021 was already with the new strategy and how Q4 2022 going to look like. So report from Q4 2022 almost should look better and compare better to what they are comparing right now. So that's, again, positive news for the company and for investors. Like I stated before, the 2022 company goals, I would say, are 2: a, to achieve gross margin of over 40%. We believe that this is doable task and again, we see a steady improvement in this metric quarter-over-quarter. And even though we are giving away some lower margin revenue, we still would like to see growth in gross profit of at least 15% year-over-year. If we can achieve these 2 goals in 2022, then I can say that as far as management is concerned, 2022 is going to be a very successful year. With regards to Amphy and people have some like question regarding Amphy, where Amphy stands, where the company stands with regard to projects, I would say, the following: a, investors need to bear in mind that Amphy was actually only incorporated in Q2 2021. So the first quarter we started to report those with regards to Amphy was Q2 2021. So we are only as a reporting, let's say, company only 3 quarters into the cooperation. So that's not a long time in a company like and before that Amphy, I would say was still running on a better mode so this wasn't like generally any significant number. We foresee or expect revenues to start increasing from the second part of H2 2022. So as far as we are concerned for the first four quarters, I would say Q2 2021 until Q2 2022, we're still going to be in the 0 to 1 stage. This means that we are still developing the platform, still dealing like there is a platform in order to cater. And then once we can be assured that we have the right product offering, the right product to market fit, then we can start slowly to scale it up. Again, I wouldn't set expect to see significant revenue coming from Amphy in 2022. But from the second part of '22 and when we enter in 2023, Amphy should start generating more significant revenue as well. Bear in mind that we're making sure to have a good control of the Amphy expenses. So basically, the Amphy bandwidth, we continue to -- like continue to be relatively low, and that's under the company's control because the company believes we can continue to invest in the Amphy project and hope to see fruit from this investment in the second part of the year and obviously for many years to come. But again, do it reasonably with relatively low expenses as well. Last but not least, today morning before the market opened, the company announced a buyback plan. Obviously, that's still subject to the TSX approval. So that's the conditional plan. But the way the company feels and the Board feels, I would say, the following: a, the current share price of 0.36% (sic) [ $0.36, ] we don't believe represent the true value of the company. And if any it represents a buying opportunity, and that's exactly what we are planning to do. So this is, I would say, our first remark. Our second remark is, obviously, we would like to put this plan into motion, also to show support and solidarity to the current shareholders. We understand people lost money on the Adcore story. Obviously, that's not the only tech company or other companies that their stocks have flattened lately. But nobody likes to lose money. It doesn't matter if you lose it on Tesla, you lose it on Nestle, you lose it on Adcore. And what we can do in order to show some solidarity is obviously, to announce this type of a buyback plan. So under this plan, we can purchase up to 5% of the outstanding shares. This represents a maximum amount of around 3.2 million shares, and we can do it over a period of 12 months. So again, the way management and Board feels, the current share price is way too low. We don't believe it to reflect the true value of the company and the company now is lucky enough to be in a position that we have enough cash in order to be able to announce such a plan. And that's exactly what we are doing, not decided to do but already put it in motion and this is what we are planning to do. And again, we will do it as long as it takes and as long as the share price is not going to make any sense as far as we are concerned. Also, Adcore is in a relatively strong position as a company. And basically, we are lucky enough that even if the current down trend in the market is going to continue well, I would say, into the end of 2022, still Adcore is a solid company, and we don't believe that Adcore like -- not like some other companies that urgently need to recruitment, to have like another fund raising or anything like that, so Adcore can survive it. Not only we will survive it, we will survive it as a better company and basically the shares share that we are buying back because the current share price doesn't make too much sense. So that's as far as I am concerned, I can say just on a more personal note, I would say the following: obviously, we are not stupid. We understand Q1 wasn't a greatest quarter for the company. Having said that, we don't believe it a complete catastrophe as well. The company has a strategy in place. We know what we are doing. If you look at the important metrics like gross profit and gross margin, actually, we were improving and also the quality of the growth. So overall, for the long term, we are very positive around this, I would say, new strategy and what value it can bring to the shareholders as well. And I think shareholders should understand it. They should know a lot better what to expect also in the coming quarters. And at the end of the day, me as, let's say, the CEO of the company, I have full confidence that: a, Adcore will survive this down trend in the market and actually why for me it is the better strongest company, maybe we will continue to buy other companies as well; b, continue to support this focus necessary; and c, we remain focused in the long-term, let's say, vision of the company. Only today, this is the conference call and this is everything that's going on and this always take the pressure believe me or not, I had 3 interviews for different departments of the -- within Adcore for job interviews that I needed to make. One of them is actually after this conference call. So this means the day-to-day continue, the company is very much focused on what needs to be done. And this is exactly what we are doing every single day, including today. So thank you so much, and I would hand it back to you now, Ilana.

Thank you very much, Omri. I will now turn the call over to Yatir Sadot to quickly review the first quarter financials in more detail. Yatir?

Thank you, Ilana, and good morning, everyone. Before beginning the financial overview, I would like to remind you that the following discussion will include GAAP financial measures as well as non-GAAP results. All amounts will be presented in Canadian dollars. Q1 was characterized by an acceleration of the strategy started in mid-2021 to focus on higher-margin indirect revenue. We deliberately owned our revenue to focus on the more attractive, predictable and durable indirect channel, which we believe in the long run will result in more sustainable, profitable business. Now let's review in more detail the financial results. For the 3 months ended March 31, 2022, we delivered revenue of CAD 4.7 million compared to CAD 8.6 million in 2020, a decrease of CAD 3.9 million or 45%. Indirect sales were CAD 1.4 million or 30% of sales compared to CAD 342,000 or 4% of sales in Q1 last year. Indirect revenues increased by CAD 1 million or 304% year-over-year. Cost of revenue decreased by CAD 4 million or 60% to CAD 2.7 million compared to CAD 6.7 million in the first quarter of 2021. Gross profit was CAD 2 million compared to CAD 1.9 million, an increase of CAD 33,000 or 2%. Although the company experienced a decrease in revenue, we saw an increase in gross profit as we saw significant increase in indirect clients with higher gross margin, as Omri mentioned before. Moving to operational expenses. Research and development expenses for the quarter were CAD 390,000 or 8% of revenue compared to CAD 449,000 or 5% of revenues in the prior year. The decrease was mainly due to increased asset capitalization of both MarTech and AdTech development activity. Sales and marketing expenses in general and administrative expenses for the quarter were CAD 2 million or 44% of revenues compared to CAD 1.5 million or 18% of revenues in 2021. The increase was mainly due to hiring more talent and related employment compensation. Operating loss was CAD 446,000 compared to operating profit of CAD 36 million. This increase was mainly driven by a decrease in direct client revenue and the increase in SG&A expenses. Net loss was CAD 838,000 compared to a loss of CAD 327,000, a loss increase of CAD 511,000 or 156%. We exited Q1 with a strong cash and liquidity position. Total working capital of CAD 11.9 million compared to CAD 12.8 million at December 31, 2021, a decrease of CAD 886,000 or 7%. Cash and cash equivalents of CAD 11.1 million as of March 31, 2022, compared to CAD 13.9 million at December 31, 2021. The decrease is mainly attributable to media payments related to 2021 that were paid in January 2022. This is the technical shifting that Omri mentioned before. We also see significant low debt. The company doesn't hold any financial debt on the balance sheet, as you can see. Total assets of CAD 18.2 million compared to CAD 21.7 million in 2021, a decrease of 15%. Now let's discuss the revenue breakdown. So as I have mentioned, the most significant revenue trend is the increase in higher margin and higher quality indirect sales to CAD 1.4 million in the 3 months ended March 31, 2022, compared to CAD 342,000 in the same period in 2021. This has been a key strategic focus of ours as we look to drive long-term shareholder value. Thus far, we see that this strategy is working and we reported improved gross profit on an intentionally much lower revenue base. Our gross margin target, as Omri mentioned before, is between 40% and 50%. And this is the goal of the company in the next 2 years. Now let's discuss the unity yearly adjusted comprehensive income. As you can see, Amphy's total expenses in the first quarter of 2022 was CAD 323,000. Excluding Amphy from the MarTech activity, operating loss of -- the operating loss was CAD 128,000 compared to operating profit of CAD 36,000 in 2021, a decrease of CAD 164,000 or 251%. Net loss for the MarTech activity alone in the first quarter of 2022 was [ CAD 515 million ] compared to a loss of CAD 329,000 in the same period in 2021. Adjusted EBITDA. Our quarterly non-GAAP results reflect adjustments for the following items: depreciation and amortization totaled CAD 299,000, share-based payment totaled CAD 195,000, other adjustments totaled CAD 37,000 and for the 3 months ended March 31, 2022, adjusted EBITDA was CAD 85,000 compared to CAD 584,000 for the same period in 2021, a decrease of 97%. Excluding Amphy from the MarTech activity, adjusted EBITDA was CAD 382,000 compared to CAD 584,000 for the same period in 2021, a decrease of 35%. So on an intentionally lower revenue base, as we transition to an enhanced revenue model, while also investing in Amphy, we were still able to report positive adjusted EBITDA. And as our more robust and higher margin revenue model tells and as [indiscernible] grows, we are confident that we will be able to drive significantly improved results in the rest of the year. I would add as a side note to what Omri mentioned before that in addition to the current level of the revenue that we present in the first quarter of 2022, we expect to add the traditional tourism and leisure budget now that many countries opened the gates after the pandemic, another significant revenue that we expect to see in the following quarters in 2022. Now with that, I will turn the call back to Ilana. Thank you.

Thank you very much, Yatir. With that, we will turn the call over to questions. We'll start with the first question. We talked a little bit about that, but this one coming from [indiscernible]. What was the decline in revenue?

So we mentioned it. Both myself and Yatir mentioned it in our overview regarding the remarks regarding the results of Q1. But I would say the following: a, the big growth is mainly because of the drop in cost of revenues. So the company given where revenues is coming with lower margins than lots of cost of revenue associated with them and wanted to focus in more let's say quality type of revenue. So that, I would say, was the major driver of the lower -- the drop in revenue.

All right. Thank you. Next question is where do we stand with analyst coverage?

It's a good question, and we've been actively looking to get analyst coverage for quite a while now. I need to be honest with the shareholders and say that obviously it's becoming more and more difficult in the current market condition because obviously, the company markup is now going down. And obviously, analysts don't want to now take a position before because we don't really know what's going to happen in the market. So the company's ability now to get solid, I would say, analyst coverage was a bit diminished because of the market conditions. Having said that, we did get very positive around the corner report from Canaccord and continue to build very strong initiative with the Canaccord analyst coverage. We're also talking with other analyst [indiscernible] and other banks as well. And for the long run, I believe once the market will become a bit more positive, then we'll also see starting to get analyst coverage for the company. I think now with the shift that the company did in focusing on more quality revenue instead of just any revenue, I think that's going to make the analyst life also a bit more easy in order to anticipate what to expect in the next coming quarters, and that's going to make their life a bit easier and actually will be coming to cover -- will be starting to cover a company like Adcore.

Thank you. Our next question is from John Lee. What has been the churn rate for AMC?

So we split into 2, I would say. If it's -- Amphy has 2 types of offering. We have the free offering basically and over there, we can see about 40% churn rate. So thee are a lot of, I would say, small client accounts basically going into the platform, using the Amphy, for example, Effortless Marketing, and we can see over there around 40% churn rate, which it makes sense for a free app offering. But when we're talking about the premium app like [indiscernible] and other then the churn rate is actually is very low. We talk about around 8% per quarter. So basically, if it's premium, we see a very low churn rate, and if it's free, which makes sense, we can see a bit higher churn rate.

Next question from [ Mr. Guero ]. Will you need to raise equity this year?

So I already mentioned it a bit, I would say, a, the company has a strong cash position. So the short answer would be probably not, but I would like to extend exemption for this answer. If we believe there's going to be a meaningful M&A opportunity and it's going to be bigger than what the company currently affords using only our cash and maybe we can turn to look to raise some capital to support this deal. This is -- can be one exemption. And another exemption can be to support the further growth of Amphy. But again, if you're going to do that, it's going to be probably directly to Amphy and not related to the Adcore Inc. group company. So I would say, overall, for the core business of MarTech, the shorter is no, but it's no but.

Thank you. What is the company M&A pipeline?

So we're actively working, and we discussed it a few times before. We are actively working in order to build a pipeline. We're looking into a few potential M&A deals right now. Some of them are, I would say, more close to the type of acquired types of M&A, which means that we are always looking for people. And I mentioned before that just today, with all the conference call, earning call and everything, I need to see time created with 3 different candidates for 3 different departments within the company. So we all the time still continue hiring and to acquire type of M&A is something that we're actively looking to do. And also other, let's say, I would say, more strategic type of M&A, which can give us some advantage, give us an exit or entry point to, let's say, 2 areas, which the company currently is not very good at or would like to enter into. So that's the 2 types of potential M&As that we're looking today.

Thank you, Omri. Our next question is from Patrick Irish. Why did the Board decide on a 5% and not at 10% [indiscernible]? Also, did they discuss options like a tender offer at $0.40 for 5 million shares to absorb any sellers in the market?

So it's 2 different questions. I will start with the first one. So basically, the way the plan are set up, you can actually decide whether you want to go for 5% on the total outstanding shares. And for us, it was a bigger number than 10% of the float because the float for Adcore is not so big. So when we did the math, actually 5% of the total outstanding come a larger number than the 10% from the total float. That's why we decided to go with the 5%. So 5% may sound like a smaller number than 10%, but actually, we get more shares the company can buy. And for the second option, the Board didn't have a discussion about it yet. We would like to give the new managers to succeed and to prove it to us. But if we still see there is a lot of [indiscernible] in the market and people would like to go out from the stock, then we can consider other options as well. Like I said, we believe in the company. We put our money where our mass is and start to buy shares back, and we continue to do for as long as it's going to stay.

5% of CAD 53 million or 10% of CAD 22 million. So this is the difference.

Thank you. Next question is any color on the large customer leaving Adcore?

Yes. So we didn't have any large customers leave Adcore, but we did saw a meaningful, I would say, reduce in the customer activity. And I would say this mainly attributes to 2 things: a, switching some of their activity from do it for me to do it yourself. So obviously, the entire media-related costs that were part of this revenue are no longer exist; and b, I would say, in this specific region, which is, I would say, area, we had more impact of the [indiscernible] Facebook and new regulation on it. So I would say both of them impact. Having said that, we did see a decrease, but this client is still alive with Adcore.

Thank you, Omri. Our next question is from Tim. Why do you change strategy so often? First, you wanted to focus on top line revenue growth and now you change towards bottom line growth with better margins again, being the strategy. Should investors be worried about your nonconsistent strategy choices?

Yes. So I would say the following: a, there's a lot of things in now our world to be worried about. I would say like it's fair enough to say that we can -- one of the things you need to worry about is basically the company's strategy decision. I would say historically up until 2021, the company's gross margin area was always at around 50% and without a big portion of cost of revenue that's attached to it. So that historically was the case year after year up until 2021. And then in 2021, a lot changed because of COVID. We saw massive spike in the [indiscernible] activity. We thought it a big opportunity for the company and basically decided to take it. But that also comes with a high price [indiscernible] say low gross margin. So that's something that I would say was very much COVID related. If any now the company is going back to, I would say, to the historic norm. So the company is not jumping around from one strategy to another strategy. Bear in mind that we are in business for a long time since 2006, and we've seen a lot during this year. So we know how the quarter looks like, we know how the year looks like. COVID was an unusual time and sometimes unusual time requires unusual measures. But I would say 2022 will be much more similar to I would say [indiscernible] 2021 world, if that makes sense.

Thank you, Omri. We have time for 2 more questions, although many are asking. So let's start with Michael Wolfe. What is the advertisings revenue and margin from the Israel Tours before the pandemic? What's currently revenue trend from this customer?

Yes. So we don't tend to discuss specific revenue from a specific client. Also bear in mind that we are under an NDA agreement with them. So that's something the company cannot disclose but what we can disclose and was disclosed in the PR that, let's say, the overall budget, let's say, advertising budgets that we're talking about are CAD 25 million. Obviously, from this, let's say, cap, the company -- we have another, let's say, company that manages [indiscernible] to Adcore some of these budgets; and b, I would say, historically for these type of clients, I would say, anywhere between 5% to 10% is usually the company cap. But again, it's not to talk about this specific client. I mean, investors can understand whatever they want to understand for me.

Thank you, Omri. We're going to have one last question. What are the company outlined plans to boost investor confidence?

First of all -- lastly, I hear you -- like I understand your pain. Like I am also -- besides Adcore an investor in a lot of smaller and much bigger branding companies like Tesla, and [indiscernible] and other brands out there. So I can understand it. And nobody likes to lose money. Like there's a lot of things you can like in life, losing money, probably is not one of them. But again, me as an investor, what I'm trying to say -- to tell myself, a, to see, let's say, the downtrend in the market is buying opportunity, and I really [indiscernible] for other, let's say, companies that are like and I believe they're going to do good for the long run. And I would say for investors, I will do the same. I will stay quiet. People lost a lot of money in the Adcore shares and other companies as well. So I think like investors need to be a bit more patient. The downtrend in the market is not going to last for, I don't know, 3 or 4 years. It's something that I would say is a few more quarters away, and I personally expect it like we're going to see maybe some uptrend or maybe some sideway movement. But for the long run, Adcore is a solid company. We did the last now with the buyback plan. So that, I think, shows a lot of solidarity and support with the current shareholders. And like I said it before, we continue to do whatever it takes in order to support the story. And trust me, we know that people lost money, and we know that they are not happy about it. I'm not happy about it as well.

Thank you very much. With that, we will conclude the Q&A portion of this call. Thank you, Omri. Thank you, Yatir, and thanks, everyone, for joining us today. Have a great day.

Thank you, guys.

Thank you, Ilana. Thank you, guys. Bye-bye.