Akamai Technologies, Inc. (AKAM) Earnings Call Transcript & Summary

Okay. Thanks, everyone, for joining us. This is Matt Niknam, Communications Analyst at Deutsche Bank. We are very pleased to be joined by Akamai's Head of Investor Relations, Tom Barth. Tom, thank you very much for joining us.

Thank you, Matt, and thank you, everyone.

Okay. Great. So maybe just to get started, high-level question, Tom, maybe if you can talk about some of the top priorities for Akamai in 2020?

Well, certainly. So again, over the last couple of years, we've been talking a lot about margin appreciation. And at the end of 2019 over '17, we gave the Street about 5 points of operating margin expansion, and we've been very vocal about trying to attain 30%. We've given such guidance for 2020. So 6 points of margin. And then we also will continue to invest in innovation to try and continue to accelerate top line growth. Obviously, there's a company ambition to try and get back to double-digit growth. In the interim, we continue to invest in new solutions and market expansion in the new territories. We've been pretty pleased about security growth, so a lot of these investments tend to continue to further that security growth. We've talked about both web security and now moving into enterprise security. And so -- and then lastly, of course, with corona, trying to keep a great culture internally. Obviously, we care about our employees and try and create an environment that is both conducive for work environments as well as productivity in the workforce, so always a challenge.

Yes. Makes sense, makes sense. Well, maybe just to start, I mean, the CDN business is still, I think, roughly 70% of revenue, and growth has been fairly stable, fairly flattish recently. So maybe from a high level, can you give us the outlook for CDN for 2020 and talk about whether some of these bigger OTT launches and events in 2020, like the election and Olympics, can help reaccelerate growth this year?

Yes. So that 70% is comprised of both not only CDN but also web acceleration, and they're slightly different mechanics in each business. But within CDN we tend to have better even years than odd years as there tends to be more unique events that happen in the even years. In 2020 are things like the elections. You also have Olympics. And then you have continuation of growth of things like March Madness or the Masters and other kind of Super Bowl onetime kind of big events. So the longer the event, the longer it tends to drive revenue for Akamai. So in terms of the larger 2, it would be elections and the Olympics. We have been executing pretty well in terms of the media, in terms of gaining share. Again, it's not a marketplace where you're, for the most part, trying to find new customers. What you're trying to do is grow with them as they grow, but also garner more market share from each of those customers. And so we've been pleased that 2020 also has sort of -- you saw a little bit in the tailwind of 2019 with new direct-to-consumer OTT launches as well as, what I would call, increased use of real-time downloads for the gaming environment. And so the good news is a lot of the growth on the CDN side is coming from, what I would call, meaningful traffic that people watch. So eyeballs open kind of traffic. And Akamai tends to excel in this not only, what I would say, in the U.S. marketplace, but globally, over much of the competition.

Yes. And just to follow up on that. Have you seen or at least from what you've talked about publicly, any sort of noticeable impact from the coronavirus to date just in terms of additional web traffic?

Yes. So it's early to tell, but I would say, traffic always continues to grow on the platform. We have seen some increased traffic, but it's very difficult at this point to discern why that might be. I think, again, in general, there's arguments where you could say, well, people are working from home more, not only in terms of personal use but professionally use about -- use of the Internet, that would be a good thing. I would say if there was a scenario where kids started having to stay home, that the gaming environment would probably increase. So -- but I would say, at this point, it's still really early days in terms of how companies are trying to figure out their employees and stay from home. But again, if people are staying away from public places, more than likely they're all watching, streaming or playing games or at least trying to search -- do searches on the Internet for content, which would tend to be a good indicator for Akamai.

Yes. And maybe if you can give us an update, just competitively, what you're seeing for this segment? And what gives you confidence that you're able to actually hold or take market share in this segment?

Yes. So we haven't seen a lot of changes in terms of the competitive landscape. It's a very difficult market, right, as there's not a lot of barriers to entry in this space. But there are barriers of scale, and Akamai has always claimed to be the most global, most reliable CDN network out there. And so in the U.S. marketplace, where there tends to be a lot more of these smaller players that tend to be a little bit more aggressive in their tactics to gain customers, it's a little bit more competitive. You also have what you had seen back over the last couple of years, but that has since stabilized, that some of the larger Internet platform customers, who used to be large customers of Akamai, have taken either some or all their content in-house. And that's why, for those that have followed us through the years, we had a little bit of revenue growth challenge in the U.S. marketplace due to some of these giants doing some things themselves, which, again, is unique in that category of do-it-yourself and one of the reasons why we break out those 6 companies. But when I first came to Akamai, it was in the low 20% of total revenue. And today, that's just under 7%, somewhere around 6.5%. So one could argue, one man's cloud is another man's cover that our revenue diversification story on our customer set really does sort of prevent a lot of risk in sort of the -- in the installed base, if one customer tried to -- either their business was struggling or they decided to do something in-house. So I would also say that the revenue diversification across geographies and across products continue to be sort of a hidden jewel in our investment thesis for talking to investors.

Yes. And I assume that's a big reason as to why customer churn. I know you mentioned, I believe, on your last call, customer churn sort of staying at -- being near multiyear lows. I assume it's the sort of scale that keeps customers with Akamai. Is that a fair assessment?

I think it's one of the reasons, right? I mean again, if you think about the CDN space, the growth for the most part continues to be and where there's higher value-add is in the size of open traffic of real-time gaming and video. So again, I think Akamai had -- and by the way, that's also on a global scale. And this is where Akamai has a really good chance to differentiate itself versus more of the software download, which Akamai, again, remains competitive in, but that's a much more of a nice sight, if you will, in terms of which vendor customers will pick.

Yes. And maybe shifting gears to cloud security. So that's roughly now, I believe, about 30% of revenue, is growing roughly 30% as well year-on-year. Can you talk about your expectations for 2020 and how Akamai can maintain this type of growth, somewhere -- I think you've talked about somewhere in the low 20s, but how do you create growth elevated even if the business scales past $1 billion revenue run rate?

Yes. So that is correct. We've given you some guidance on the security business. We do break that out on a product line, but we're hoping to have $1 billion in revenue in that next year, which -- somewhere around 20% year-over-year growth. That 30%, just to be candid, has a couple of points of growth from an acquisition. So it's still in the high 20s. But where we continue to see very good penetration is within the installed base. So we gave you some metrics on the last earnings call where just over half, about 55%, by 1 security solution of our over 5,000 global customers and 28% by 2 and we continue to add new products into the security portfolio, where, again, most of those security sales are in the installed base. But I'm pleased to say, within the last 1.5 years, we've kicked in some initiatives that would allow us to find some new logos around the globe, and that continues to add in some booking strength in terms of growth. So I would say, in the near term, you're going to continue to see the security solutions that we offer is kind of the main driver of growth. You have some new products, like page integrity that come out later this year, that should be, hopefully, very, very successful and probably pretty easy to roll into the quota-bearing reps sort of bag. And then you have some longer-term sort of opportunities around identity cloud or customer identity as well as what the coronavirus is, working from home, our enterprise solutions would be a very logical selection for companies as they continue to reach a remote audience with cloud-based applications. And so we have like a much more dynamic, improved, secure gateway product that rolls out later this year. And so I'm pretty excited about some of the opportunities in the enterprise security space, which my belief is that the addressable markets in that sort of dwarf the security space that we're in today.

Yes. Maybe just to follow up there on enterprise. So you mentioned, right, some of the newer products appear more targeted at enterprise and you've also talked about leveraging some of your carrier customers to sell into SMEs. Can you help maybe frame the incremental revenue or growth opportunity this presents? And maybe the associated sales or margin investments you may need to make to sort of tackle this newer target?

Yes. No. Look, I mean, that's what makes growing a business very difficult is what's the -- you got to get the timing right. You've got to get the sales enablement, right? Otherwise, it's just wasted dollars, right? And so we have been investing in this business. And some of it obviously starts with having a robust product. And I think in terms of application access, I think our product is quite good over there, but on the secure web gateway, that needed some improvement. And so there were some investments there. But you also have to educate the market, right? And so what I'm pleased to say is over the last year, you're starting to see the Gartners and the Forresters of the world put out white papers, put out their quadrants, put out other means where CIOs cannot just have to believe the sales rep that it's good, but to believe an independent third-party about the value, the quality, the players in the space. And so I think that has moved dramatic from where it was a year or 2 years ago. And you can see the success, not only in our own enterprise products growth, but someone like Zscaler, right? You can also see in identity cloud with the growth of Okta, and we don't break out our identity cloud product, but there will be certain drivers in there that will be sort of compliance-driven, but it will also be important to trying to enable our quota-bearing reps to sell that product. So -- look, I think the good news is that there's products that still have room, ample greenfields in front of it, to keep selling. There's some near-term and longer-term horizon products that should be able to be successful. When I look at what they try and do, I think that makes a lot of sense to me. So I think there's things in the near term -- farther pipeline in products that will continue to allow security to grow at healthy rates.

Yes. And by the way, you mentioned, I think, 55% of your customers purchasing at least 1 security product, 28% buying 2 or more. So maybe just a follow-up there. I mean have you talked about longer-term targets in terms of where that could get to? And maybe just a second follow-up on that, what's the gating factor from customers currently that's sort of keeping them -- keeping these numbers where they are right now?

Yes. No. I think longer term, I mean, they actually have a step function [ and you ] need the enterprise stuff to really kick in, but that's not something we're expecting in the near term in terms of any sort of revenue guidance today. The growth is helpful, but it's not meaningful in terms of real dollars yet because that market still is kind of nuanced. I'm sorry, the second part of that question was?

Yes. Just in terms of the gating factor. How many -- customers who aren't onboard, are they with competitors? Is it refresh related, like what...?

It's interesting. I look at -- I've been with the company a while and look at the competitive landscape, 6 years ago, it was names like Imperva and F5 were on the landscape. Now you've kind of gone back to what I would say is traditional sort of firewall companies like Palo Alto or Check Point and these kind of companies or even F5 with some investments. But they are on the landscape trying to figure out their cloud identity, which is for people that know technology companies, it's a very difficult transition to go from an on-prem world to the cloud world, right? And some of those companies will likely be more successful at trying to transition, but it will take many years to come. And unfortunately, it usually gets uglier before it gets better for those kind of companies. The good news is companies like Akamai is that we have been founded in the cloud. And so we don't have to go through that mutation, if you will, of our business. And the hardest thing for us is that that's a bigger selling motion. And we've always been a very product-centric company, and we've been making dramatic investments in our sales enablement process. And it's really hard to grow a product very aggressively unless your quota-bearing rep can sell it. And today, the enterprise solutions are not there yet. And so that is where Akamai will spend a lot of effort. But looking at it from a customer lens, again, the CIO is that kind of buyer, I think they've made a lot of a lot of attitude changes in terms of what they used to believe is having a bigger castle wall was better with hardware to moving more towards trying to get away from their own IT staff managing things to less hardware and to less vendors. And all those things, because Akamai is a company of scale, has a very thorough professional services organization and I think has real products were they no longer have to buy sort of a firewall belt to protect with the suspenders to keep their pants up. And I think if Akamai can prove that there's less risk of using these cloud-based solutions, and again we have other cloud-based companies out there trying to do the same thing that, that will only accelerate growth in this space.

I think historically, I mean, the way I framed the last question kind of indicates, you start with a CDN-based customer and sort of -- you tack on security. But if we think about it sort of conversely, are there cross-sell opportunities where security is the lead product, and you can sort of up-sell and land and expand to sell more CDN-based solutions?

Certainly, web acceleration. There's a very tight connection between web acceleration and the security. So think about -- again, when I first joined the company, we're talking about perform and protect, which we would sell them a web acceleration product and hopefully try and sell a security product. Today, that's flip-flopped. And we do see some customers buying security and then realizing that if you think about, you route your traffic through the Akamai platform and you've basically improved the performance just by turning on Akamai and turning off the firewall, which is more of a frisker, if you will, of all traffic. And so what happens, when they turn this Akamai security on, they see improved performance on their website, and the good Akamai salesman says well -- or salesperson would say, well, if you think that's good, I have an acceleration product that will increase performance by a factor of X or Y. And I think we're pretty excited about that opportunity going forward as well.

And just one more on security to sort of tie this together. How would you talk -- how would you characterize the customer demand backdrop right now? I mean have buying decisions been impacted or slowed at all in 1Q because of the coronavirus or maybe just broader macro factors?

Yes. I'd say it's probably still too early to tell, right? Companies are still trying to figure out their own identity and what to do about this whole thing. But -- look, the phone still works, there's still things like Zoom. And I think salespeople, remember, they've got to put food on the table, so they will continue to be creative about trying to reach the customer. There's a big difference between -- look, I guess I would point to your conference here, right, that I guess, I don't have the face interaction here of these meetings or the presentation, but it loses a little bit, but we're still talking about Akamai to the investment community.

Yes. Okay. International, I want to talk about it a little bit. It's actually driven the lion share of growth in recent years, roughly 40% of revenue right now in total for Akamai. So can you talk about the bigger drivers of growth internationally? And then how Akamai differentiates and wins relative to the competition abroad?

Yes. So great question. Again, we've been very pleased. We did do a sort of an aggressive expansion effort about 6 years ago on go-to-market internationally. I'm pleased to say that you're starting to see -- you see the benefits of that. And obviously that revenue diversification of international is good for us. Now with that said, Akamai does have the most global platform, so it makes sense to continue to expand that strength point for us in terms of points of presence. Today, Akamai sits in over 100 countries and 3,900 locations and probably the next competitors in 200 locations in a small number of countries. So it's going to be -- it's very difficult to duplicate that, but you also need this very powerful brain that runs the platform and Akamai -- because we've been at it a long time, but we're also pleased with our R&D sort of recruitment in MIT sort of -- and West Coast, Stanford and these kind of universities kind of talent joining Akamai all the time. So you also have some new markets like in Asia that tend to have very fast and rapid adoption. I think security, your earlier question, is a great way to approach customers within. They might have 5 banks in their country. And if you can get into one, generally speaking, you get into all 5, which is very exciting for any sales rep to make that kind of closure in the marketplace. So look, the U.S. growth was a little bit hampered mainly because you had a little bit of the do-it-yourself thing there for a couple of years. You're starting to see, again, an improvement in U.S. growth as that giant's bucket has stabilized. And -- but it'll be easier for us to find new logos internationally. And we've done some expansion in places like South America. We've expanded our presence in India, Australia and Japan and other places like that where I think we're pretty excited about having a differentiated story than the competitive landscape.

Yes. Maybe to follow up there, I mean, you referenced a couple of geos, are there specific regions where growth stands out right now? And then are there markets you're not in today, but where you may anticipate sort of building out a bigger presence over time?

Yes. I think South America could be one where there's more opportunity than what we've been pursuing. So I think we're excited about that. But again, that's good growth, but it's not huge numbers. I don't know what the TAM would be, but it's certainly worth pursuing and should be a good number over the next couple of years. I think India continues to show strong growth. I think -- obviously, there's opportunities in China, but you have to be wary about -- be careful of the friend you take to dance until you get to know them a little bit better. And so there's volatility in the China market, but they have global aspirations and to deliver traffic for legitimate companies based either content going into China for their marketplace or content coming out of China, that's kind of where Akamai sits. So there's opportunities there, and time will tell. So I don't know, I guess, I would say there's no dearth of opportunity for Akamai on the global stage.

Okay. Let's shift maybe to margin. So I think we started out talking about margin targets, you ended last year about 29%, non-GAAP operating margins, you've talked about 30% for this year. Can you talk about the puts and takes here? You've got -- your higher margin security solutions continuing to grow, so maybe help us think about the puts and takes with margins? And where is some of the lift from the pickup in security being reinvested into?

Yes. So again, I think we continue to look for opportunities of improvements in how to do business, so a better procurement function, rationalizing your facilities around the world to make sure that they're in places of growth as well as your employment count. So I think, again, we continue -- we've only been at this for a couple of years, so there's obviously continued improvement there. You also are getting a better mix of the business in terms of margin improvement. And you do have a couple of things that are out there that will require some future investment to get to company margins. That would be the enterprise business. But in general, if you looked at our web division, you're talking about an op margin business that's sort of in the mid-30s, and that's growing more quickly than the median carrier division, which has sort of mid-teens kind of margin. So it's not an easy blend to figure out growth versus margin. I think for us, a lot of people are asking us, what's next after the 30%. I think I would tell you that I think there's executives internally that would like to give you more margin. There's executives that would like to give the Street double-digit revenue growth. And I think every executive would like to give you both. And we're trying to figure out what is that dynamic mix, and when we get a little bit further to providing guidance for further guidance down the road that we will provide that. So for now, the only guidance that we have on the Street is that 30% margin guidance.

Well, that was going to be my next question. In terms of thinking about longer-term targets for operating margins, given the revenue mix shift, maybe if I sort of turn it the other way and see if there's anything -- any additional color you can give. You talked about top line growth in wanting to sort of get back to that double-digit type, 10% type growth over time, is there an openness to maybe reinvesting some of the scale in margin to help reaccelerate growth on the top line?

Yes. Again, I would say there's executives in both camps, right? So I know I sound like I'm kicking the can down the road a little bit, and in fact I am because I think -- look, we have a lot of things to look at in terms of what's the right thing for investors, what's the right thing for the company in terms of investment dollars. And as long as we see opportunity, there's a greater appetite to invest in it. But if there wasn't such an opportunity, then there'd be a greater concept around providing that profit back into the investor base. So I would say, right now, there's a lot of analysis going on. And I would say, no definitive decisions have been made.

Okay. What about on the capital allocation front? I mean how does Akamai think about capital allocation priorities between items like CapEx, M&A and shareholder returns?

Yes. CapEx is the one where you're -- again, you do have this new phenomenon. Again, I'd say cord-cutting still is at its early days in terms of the marketplace. And look, if the economy start getting tough, I think people, if they want to look to save some money, saving $250 a month, right? Today, most of the streaming is happening where people continue to have a cable bill, and they're paying for supplemental sort of streaming services. And so I think those would only continue to grow that would be good for Akamai. And you're seeing all these incremental launches, which is good for the CDN industry and obviously good for Akamai. But do you need more capacity? And so Akamai has been very vocal about having enough so our large customers know they can trust us that the lights won't flicker when their customers are turning on their services. And so we've -- we're investing at a little bit higher rate this year in terms of CapEx. If we continue to see great growth, we'll probably continue to invest. Otherwise, we'd like to scale that back a little bit. Obviously, the security and the web acceleration business today gain a benefit from sitting on much of the same servers as the media business does. And -- but they are less capital intensive than the media business. So the business that is growing faster probably needs less CapEx investment. And so hopefully, the long-term targets around the company, which we've stated in the past, are somewhere between 15% and 16%. And we'll stay tuned. But for now, it's a little bit elevated, primarily due to the excitement around OTT. And then in terms of M&A -- I'm sorry, go ahead.

Yes. No. That was what I was going to follow up on, so go ahead.

Yes. So M&A, we've always been a very curious company. We have bought companies over the years. We've bought technology. We've bought marketplaces. I mean we've done a range of different M&A. I would say, we do particularly well the technology tuck-ins and roll that business into many of our other product lines and bot management would be a great example where there was some organic R&D and supplemented with some technology. And I think we're going to probably kind of continue that. We bought some intellectual property on the marketplace last -- I guess, it was 2 weeks ago now. And so I think -- look, we'll continue to be very, very curious out there. We have a very healthy balance sheet. We have very healthy cash flows, but we want to be prudent because things are quite expensive. And there's a variety of different strategies, but being in corp dev means you look at a ton of things and maybe you close 1 or 2 of them. So we'll continue to be aggressive shoppers but prudent buyers. And then on the share repurchases, last year, we bought back a lot of shares. This year, we -- our goal is to sort of offset dilution, which means about half of our free cash flow will be spent on share repurchase. If there's opportune times in the marketplace, we might accelerate that a little bit. But again, I would say, the priorities this year on -- if it was buyback or M&A, it'd be a little bit more focused on M&A. But it has to make a lot of sense for us.

Okay. And it sounds like more tuck-in type deals as opposed to more transformational type M&A, if I'm understanding correctly?

I mean that's more likely. Now that doesn't mean that we wouldn't go try and do something like that. I mean there's always -- guys in corp dev, they dream of the big hit versus the long ball, if you will, versus the singles and doubles. But look, I mean, the good news is, on a laundry list of a 100 things, there's probably 10% are those big transformational ideas. But it really has to make sense, right, because they'd be dilutive, they would be more risk to the business. And so I always say, if the IRR guy could describe it very simply and everybody would nod their head, that's a good acquisition. And those are harder to find sort of the right price point as you get bigger and bigger.

Yes. I was going to bring up valuation too, maybe probably less relevant today, but if we were having this conversation 2 weeks ago, I would assume valuation is also a pretty big hurdle to get over as well, particularly in the software realm?

Yes. No. Look, I mean, just because the market has gone down for 2 or 3 days, I don't think people have changed their own expectations of what they're worth, right? So this would have to be sort of an annualized sort of process for people's expectations of what they're worth to come down dramatically. So -- but anyway, look, I mean, I laugh because we bought Prolexic, which really sort of spring-boarded us into a much larger security platform and recognition back in 2014, and we paid 10x revenues for it roughly. And I almost fell out of my chair when they told me what we're going to pay for it. And now I look back at that, and it was like probably one of the best deals ever seen, right, for what it brought to Akamai. And we were pretty excited about it at the time. And that integration of that couldn't have gone better. So those are hard to find. I think we're always scouring the marketplace for that kind of thing. But to your point, Matt, more likely tuck-in kind of stuff is where you see more in the future.

Got it. One topic that is -- it's an interesting buzzword because it comes up a lot around 5G, it's edge, edge compute and is this sort of pivot to the edge. And I know that's one of the big points Akamai has always brought up in terms of having very real and scaled edge presence. And so I'm curious to get your take in terms of how you think about differentiation as it relates to edge relative to some of your peers? And then, also, how you think about 5G and maybe specific applications or use cases that could serve as bigger tailwinds for your business?

Yes. So obviously, I think edge is probably the latest, most recent, buzzword that's got everybody pretty excited about. I think we would probably more define it as a location of which we're truly at the edge, right? We are located in the last mile versus everyone else who's kind of in the middle mile. So we're very, very well situated when these edge computing, Internet of Things, these kind of industries, as they come around and start conceptualizing the business models that go with them. Now again, we want to be careful but there is -- we are a public company that you're buying into a viable business that can give you both revenue and profit. And so I think we're in that space. We're talking to all of the known players. We have a physical platform that situates itself very well. And you're starting to see the beginnings of it in things like the auto industry and manufacturing, industrials, where having these devices or these servers at the -- near the use case is very, very valuable.

Okay. And maybe just to sort of tie our discussion together, from your vantage point, two last questions to sort of tie this all together, one, what do you think is most underappreciated by investors when it comes to the Akamai story?

Yes. So one, I think it is the revenue diversification that's happened over the last 5 years, I mean across product lines, across geographies, across customers. And particularly in an area where you have something like coronavirus. I mean, we have very little exposure across any one of those 3 revenue guides. So I think we're excited about that. And then I think the other thing is that I think sometimes investors get very confused about what the edge really means. And I think the fact that of mine truly is geographically dispersed really does provide on a global benefit a much more advantage than a lot of our competitors. And so -- and I think the last thing is that we are in the cloud. I think sometimes -- Palo Alto recently put out some results, and I think they're just starting to show how difficult that transformation is going to be. Now frankly, I think they're a great company, so they'll figure it out. But it's going to take a multitude of years for them to figure this out. And in the meantime, you have got companies like Akamai that are there and ready to win business and take customers.

Got it. And then lastly, if we're having -- if we're sitting a year from now, hopefully, in Palm Beach or back at Palm Beach, what do you hope to have achieved in terms of milestones in 2020?

Yes. I think those would be -- we solve this health virus thing, we're all back together on the -- at The Breakers Hotel, which is one of my top 5 global hotels. But for me, obviously, our -- we have some very, I'd say, very emphatic goals for this year and one is the 30% operating margin. I think the other thing would be to continue to accelerate revenue growth. We know we can only do that by investing in innovation throughout the company. So making sure that we're doing these investments wisely so you can achieve both goal 1 and 2 of margins and accelerating revenue. And of course, for me, is the IR guy, it's always -- it's a lot easier to come to these conferences or talk to investors, if everything you do is to try and appreciate the shareholder value, right, mitigate things like volatility in stock and these kind of things. So you'll continue to hear us talk about why investing $1 in Akamai seems to make sense in terms of risk profiles, profit, revenue growth, these sort of things that I think are very, very important in being a public company. And I mean, again, we have competitors that aren't going to be profitable for 4 or 5 years. They can sell at higher growth rates, but I've always believed that investments are a blend of both of those.

Thank you very much, Tom. I think we are just about out of time, so we'll stop there. Thank you, again, for your time.

Thank you, Matt. Thanks, everyone, for joining us, and hopefully I'll see you next year.

Sounds great. Operator, thank you.

Take care. Bye-bye.