Coveo Solutions Inc. (CVO) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to Coveo's 2024 Annual General Meeting of Shareholders. [Foreign Language]. My name is Louis Tetu, and I'm the Chairman and CEO of the company. And with me here on this virtual AGM are Brandon Nussey, the Chief Financial Officer of Coveo; and Jeremie Ste-Marie, the Senior Director of Legal Affairs of Coveo as well as a number of other executives and Board members in listen in mode. As you now know, the company has decided this year again to conduct the meeting virtually by way of a live webcast to maximize shareholder attendance for those who would be unable to attend the meeting in person. By holding the meeting virtually, all shareholders, regardless of their geographic location, have an equal opportunity to participate in real-time and vote at the meeting. Fiscal 2024 was another great year and a pivotal one for Coveo and for a number of reasons. First and foremost, as everyone on this call now knows, we announced our new suite of generative AI products under the umbrella of our Coveo Relevance Augmented Generative Answering solution that you may know as CRGA in June 2023. In just a few months, CRGA was available across Coveo's own customer self-serve experiences and it became generally available in December 2023. I want everyone on this call to understand the magnitude of this achievement in a market that we're still discovering learning and experimenting with AI, assessing the risks and opportunities, we were able to bring our Gen AI solution from ideation to a live product for enterprises, creating significant value and return on investment for our customers in less than a year. For example, by deploying CRGA within customer service, we demonstrated repeatedly that we can slash the volume of case submissions within a contact center by more than 20%. The only reason we were able to achieve that when others could not is because we have been a leader in applied AI innovation within enterprises for more than a dozen years, and we were able to leverage the skills of our hundreds of applied AI developers, data scientists and engineers meticulously honed in that process. Since it has become generally available in December 2023, CRGA has been adopted by more than 30 large and global enterprise customers, and we have dozens of other projects currently ongoing with new and existing customers, all at various stages of evaluation and deployment and we're currently adding to that roster every quarter. In terms of financial results, fiscal 2024 was another great year for Coveo. We grew our SaaS subscription revenue for our core platform 18%, while continuing to significantly improve our operating efficiency. We were very proud to announce that for fiscal '24, our cash flows from operating activities improved by 167% and were positive for the first time, well ahead of what we had initially announced all that despite a challenging macro backdrop. As far as recognition goes, I'm also proud to say that this year was another banner year for Coveo. Among others, we were recently named as best enterprise search vendor for the third consecutive year in the SoftwareReviews Emotional Footprint Report, as a leader in Gartner's Magic Quadrant and also as a leader by Forrester Wave, IDC MarketScape, and independent research firm. We also recently won the best large language model application award and the AI search innovation award at the AI Breakthrough Awards, the award for most innovative digital experience cloud native AI platform at the Cybersecurity Awards, the best personalized shopping experience in the Glossy Fashion Awards as well as the CMS Wire Impact Award for best use of AI in customer service. More recently, on the business side, we also joined the MACH Alliance, launched separate strategic partnerships with global SaaS leaders, Genesys and Optimizely and hired a seasoned enterprise executive, Mr. John Grosshans, as our new Chief Revenue Officer. A few days ago, we also announced the launch of our new groundbreaking product, our very own relevance augmented passage retrieval API, which we all expect will allow us to enter into a new vertical, which is customers needing a robust and secure AI retrieval infrastructure such as Coveo's to connect to their own large language model and applied AI applications. As you can all tell by now, fiscal '24 was an exciting year for Coveo, but we're even more excited for what's ahead. We are grateful to have U.S. shareholders to stand by our side as we continue to profitably scale the business. Now for the formal part of the meeting, I would like to make a motion to have Brandon Nussey, our CFO, act as Chairperson of this AGM in accordance with Section 11.8 of our general bylaws. The motion has already been seconded by Nick Goode, our Chief Business Officer, who is also a shareholder of the company. Any questions or opposition, and I will pause for 30 seconds. Great. I can now confirm that Brandon Nussey will act as Chairperson of this meeting. Brandon, over to you.

Thank you, Louis. Good morning, everyone. This is Brandon Nussey, Chief Financial Officer of the company. [Foreign Language]. Before we start the formal portion of the meeting, I'd like to make a motion to have Jeremie Ste-Marie, our Senior Director of Legal, to act as Secretary of this AGM, also in accordance with Section 11.8 of our general bylaws. This motion has already been seconded by Nick Goode, our Chief Business Officer, who is also a shareholder of the company. Any questions or opposition? Great. I can now confirm that Jeremie Ste-Marie will act as Secretary of this meeting. Before we begin with the formal portion of the meeting, I will hand it over to Jeremie, who will quickly go through the meeting's rules.

Thanks, Brandon. Good morning, everyone. [Foreign Language] To ensure that the meeting proceeds in an orderly fashion, we wanted to communicate with you some information regarding the conduct of the meeting. First, today's meeting will be conducted in English, and the management presentation at the end of the meeting will also be given in English as our shareholder base is diverse and shareholders and proxy holders are attending the meeting from all around the world. As you can see, for convenience, a live French translation is being provided. Copies of all the documents related to today's meeting in both English and French are available on SEDAR+ under Coveo's profile at www.sedarplus.ca and on our IR website. Questions may be asked in English or French throughout the meeting. Second, as this meeting is being held online, here are a few rules governing today's meeting. All registered shareholders and duly appointed proxy holders that have completed all prerequisite steps to enter this meeting as such, will be able to ask questions and communicate with each other during the meeting via the messaging function of the meeting platform. Questions submitted during the formal portion of the meeting may be addressed by the appropriate person during the relevant order of business, if appropriate, or if deemed more appropriate at the formal Q&A session of the meeting, which will occur after the management presentation. Following adjournment of the formal business of the meeting, management will give a presentation about the company's business and activities. At the conclusion of the presentation, the company will hold a live Q&A session to address general questions submitted during the meeting. We have allocated a certain amount of time for today's AGM as a whole, and we'll answer as many questions as we can in that period of time. In order to allow the company to answer as many questions as possible from shareholders, please ensure your questions are succinct and cover only one topic per question. Questions from multiple shareholders on the same topic or that are otherwise related may be grouped, summarized or answered together. Follow-up questions will only be addressed via e-mail to [email protected]. The Chair of the meeting, Brandon Nussey, reserves the right to edit or reject questions he deems inappropriate or to limit the number of questions per shareholder or duly appointed proxy holder in order to ensure that as many persons as possible have the opportunity to ask questions. The Chair of the meeting has broad authority to conduct the meeting in an orderly manner to ensure the meeting is conducted in a manner that is fair to shareholders. The Chair may exercise broad discretion in the order in which questions are asked and the amount of time devoted to any one question. The company does not intend to address during this meeting any questions that are either irrelevant to the business of the company or the business of the meeting related to material nonpublic information that are of a personal nature, including, for example, any question related to personal grievances, derogatory references to individuals or that are otherwise in bad taste, hostile or otherwise disruptive to the orderly conduct of the meeting, out of order or not otherwise suitable for the conduct of the meeting as determined by the Chair of the meeting in its reasonable judgment. A Coveo rep will contact you after the meeting if your question is of a personal nature and best addressed privately. Today's votes on the items of business will be conducted via electronic ballots and you will be required to vote on each item of business in realtime. Voting will open upon commencement of the formal portion of the meeting and remain open for you to vote at any time until the polls are closed. You may choose to vote on each resolution immediately or wait until the conclusion of discussion on all resolutions prior to casting your vote. When you are asked to vote, you will receive a message within the online interface requiring you to register your vote. If you have already submitted your voting instructions or have already voted prior to today's meeting, you are not required to vote again today. If you do decide to vote again today, you will be revoking your previous voting instructions. Finally, we want to remind shareholders and duly appointed proxy holders that in the event of a technical malfunction or other significant problem that disrupts the meeting, the Chair of the meeting may adjourn, recess or expedite the meeting or take such other action as he determines appropriate considering the circumstance. Okay. Thank you all for listening through these rules. With that, let's call the meeting to order. Brandon, over to you.

Thank you very much, Jeremie. The meeting will now come to order and per the powers vested in me by our bylaws, I appoint Francine Beauséjour and [indiscernible] of TSX Trust Company here with us today in listen in mode to act as scrutineers for the meeting. I wish to note that in addition to folks at TSX Trust Company, we have a few other people here with us in listen only mode today, including certain executives of the company, our director nominees and our external auditors, PricewaterhouseCoopers. The Secretary has confirmed that the meeting notice, the notice of availability of materials, our management proxy circular, our annual report, including our annual Financial statements in the corresponding MD&A and all other required meeting materials were made available to all shareholders. All such materials can be found under the company's profile on SEDAR+ at www.sedarplus.ca and on our investor relations website. The Secretary has further confirmed that notice of the meeting, the notice of availability of materials and a form of proxy and/or a VIF as applicable were mailed on August 13, 2024 to all shareholders of record as of July 31, 2024, as evidenced by an affidavit of mailing provided to us by the company's transfer agent, TSX Trust Company. The affidavit of mailing is available for inspection by any shareholder. I ask that the Secretary of the meeting file a copy of such affidavit with the minutes of today's meeting. We have also been advised by the transfer agent and the meeting scrutineers that the holders of at least 25% of the aggregate number of votes attached to all of the company's shares entitled to vote at this meeting are virtually present or represented by proxy, and at least 2 persons entitled to vote at this meeting are virtually present or represented by proxy such that we have a quorum for the meeting per the company's bylaws. I ask the Secretary of this meeting to file a copy of the scrutineer's report with the minutes of today's meeting. Therefore, I declare this Annual General Meeting to be regularly called and properly constituted for the transaction of business. The voting polls will now be open for all resolutions. They will close approximately 1 minute after the last item of business. Each item of business to be considered today requires that a majority of the votes cast be voted in favor of the item of business in order for the corresponding resolution to be passed. I wish to inform each and every one of you that we have been informed by the transfer agent and scrutineers that given the number of votes received prior to the proxy cutoff, each motion presented before you today is currently expected to be carried. Finally, I note that given today's meeting format, our President and CTO, Laurent Simoneau; and our Chief Business Officer, Nicholas Goode, both of whom our shareholders of the company have agreed as shareholders and in advance of the meeting to move and second all motions presented to you today in an effort to be as efficient as possible and to allow as much time as possible for questions at the end of the meeting. As such, all motions presented before you today are considered and deemed to have been moved and seconded. If you have any questions on motions presented before you today, please let us know by writing in the chat function of the meeting platform and we will address such questions at the appropriate time. Today's first order of business is to receive the company's consolidated financial statements for the fiscal year ended March 31, 2024, and the auditor's report thereon. First, I submit the company's consolidated financial statements for the fiscal year March 31, 2024, and the auditor's report thereon to this meeting. These statements have been reviewed and approved by the company's Audit Committee and Board of Directors. The company's annual report comprising the company's financial statements for fiscal year 2024 was made available to shareholders in accordance with the applicable laws and exemptions there from. Having considered the length of time needed to read all pages of our financial statements, I have moved that the requirement to present and read the financial statements for the fiscal year ended March 31, 2024, and the auditor's report thereon be waived. And I now place the company's consolidated financial statements for fiscal 2024 and the auditor's report thereon before shareholders. Are there any questions? As there are no relevant questions on this item of business, I declare that the company's financial statements for fiscal 2024 and the auditor's report thereon have been duly presented and received. The next item of business is the election of the directors of Coveo for the ensuing year or until their successors are duly elected or appointed as applicable. As required by applicable securities laws, we will be nominating and approving directors individually and not by slate. The number of directors to be elected at today's meeting has been fixed by the Board of Directors at 9. All directors currently sitting on the Board of Directors of the meeting are standing for reelection at the meeting. In addition, Mr. Eric Lamar is standing for election as director for the first time in replacement of Mr. Frederic Lalonde, who resigned from the Board effective May 27, 2024. Mr. Lamar is independent per applicable securities laws. Throughout his career of 30-plus years, most recently as senior partner at McKinsey based in the United States, Mr. Lamar extensively advised Fortune 500 companies on their most significant business priorities, including artificial intelligence, digital transformation, productivity, risk management and mergers and acquisitions. During his career at McKinsey, Mr. Lamar served on key governance committees, including on McKinsey's Global Board of Directors and its Technology and Knowledge Committee. He also served as Chair of McKinsey's Global Acquisition Committee, overseeing dozens of acquisitions per year and led McKinsey's Digital division in North America, one of McKinsey's largest operating units with over 2,000 professionals and a multibillion-dollar P&L. Mr. Lamar holds an engineering degree from McGill University, an MA and PhD in engineering from MIT and an MBA from Collège des Ingénieurs at Paris. We are very happy to have him standing for election today and are convinced that he will be a great addition to our Board. Further information on Mr. Lamar and the other 8 directors standing for election today is set forth in the company's management proxy circular, a copy of which is available on our IR website and our SEDAR+ profile. I confirm that all nominees are eligible for election and have accepted to serve as directors of the company should they be elected. As previously mentioned, all motions have been pre-moved and pre-seconded. So I hereby confirm that each of the 9 persons nominated to be elected as directors as set forth in our management proxy circular are up for election to hold office until the next Annual Meeting of Shareholders or until a successor is duly elected or appointed as applicable. Are there any questions? As there are no relevant questions on this item of business, I now call for a vote on the election of each individual standing for election on Coveo's Board of Directors. Would all shareholders and duly appointed proxy holders please enter their votes. We will give you 1 minute to do so and then continue to the next item of business. The carrying of all motions presented before you today will be formally confirmed at the end of the formal portion of the meeting. Thank you all for your votes. The last item of business today is the appointment of our current auditors PricewaterhouseCoopers LLP, Chartered Professional Accountants, as auditors of the company for the ensuing year and authorizing the Board of Directors to fix their remuneration. PwC have been auditors of the company since its incorporation in 2004. As previously mentioned, all motions have been premoved and pre-seconded. So I hereby confirm that a vote can be taken on the appointment of our current auditors, PricewaterhouseCoopers LLP as auditors of the company for the ensuing year and the authorization of the Board of Directors to fix their remuneration. Are there any questions? As there are no relevant questions on this item of business, I now call for a vote as regards to the appointment of our auditors and the authorization of the Board of Directors to fix their remuneration. Would all shareholders and duly appointed proxy holders, please enter their votes. We will give you 60 seconds to do so and to complete any other missing votes and then officially close the votes for this year's meeting, the carrying of all motions presented before you today will subsequently formally be confirmed. Thank you all for your votes. The polls are now closed. We will now take a brief recess for our scrutineers to compile the votes, and we will be back with the preliminary results and announcements regarding the carrying of the motions presented before you today. Thank you all for your patience. It's my pleasure to confirm that all resolutions presented before you today have been formally carried and adopted with a substantial majority of the votes cast in favor of each resolution. As such, the Secretary and I hereby confirm that the 9 directors standing for election as set forth in our management proxy circular have been duly elected and that PricewaterhouseCoopers has been appointed as auditors of the company and the Board is authorized to fix their remuneration. Final voting results will be published today in a press release and a report of voting results, which will both be filed under our SEDAR+ profile. As there is no further business to be brought before this meeting, I hereby declare the formal portion of this meeting to be concluded. Now that the formal portion of the meeting is over, I will present on the business and activities of the company and talk about the year ahead. I wish to remind shareholders that questions submitted during the meeting that did not specifically pertain to an item of business will be addressed at the end of the presentation. Okay, well, first off, thank you to all of our customers, employees and investors for your continued support in Coveo and what is a really exciting time for the company. It's an exciting time for the company because Coveo has long believed that bringing AI and the benefits of AI to the points of experience that enterprises around the world are managing as a tremendous opportunity for the business. And we're now seeing the world wake up to the power of AI and what it can mean for business outcomes. Of course, Coveo is well suited to address these demands for large enterprises because as you heard from Louis earlier, Coveo has got a rich history in bringing AI to enterprises, over 10 plus years of AI experience with over 700 leading global brands operating as a single platform to help companies solve various problems using our AI platform. We have a rich partner ecosystem and alliance ecosystem with companies like Adobe and Salesforce and SAP and are well recognized by the various industry analysts that follow the company and our space. The world's got caught up in a bit of a hype cycle around AI and in particularly generative AI. But as we mentioned, Coveo has been doing this for more than a decade. We started working with large language models back in 2021. We've been using things like machine learning since 2012. And while generative AI is arguably the most exciting part of the AI journey that we've been on, we've been at this for a long time and know what it takes for large enterprises to succeed in using it. And it's because of our rich history here that's what's enabled us to move quickly and gain some of the successes that you heard from Louis earlier. We do serve large enterprises. That's an important distinction of what we do versus others in the space. Our customers are large and complex, companies like Salesforce and Honeywell and HP and SAP, all very large businesses that have complex needs and where the power of AI can really help them drive outsized business outcomes. And what we're doing for these companies is very specific. AI is a very broad term that gets overused in our opinion, in many cases, especially given all the hype that has been at this market. But as we mentioned, we -- our platform is very helpful for enterprises in solving really specific things. It's a single platform that will help enterprises optimize their e-commerce journeys for their customers, whereby our focus is how do we make sure that companies realize a strong ROI from customers putting more revenue in their cart, more margin in their cart and how do we use AI to help achieve those outcomes. We help them manage customer service operations so that more of customers' problems are self solved and fewer need to go to agents. We help employees in the workplace environment get answers to questions, become more knowledgeable more quickly. And of course, we also help in just regular visitors to website, find the information that they need for these big enterprises. Our market is big. It's exciting and it's growing. IDC forecasts this market to grow at over 30% and increasingly move to the cloud. And as Coveo, as we mentioned, a single cloud-based platform that helps achieve those various AI points of experience for our customers. And we believe we're well positioned in this market as a result. That's validated by the various industry analysts. We're consistently ranked as leaders by the folks like Gartner and Forrester that cover this space, along with IDC. And that sets up well for how we get evaluated by the enterprises that we target. That's at a high level, the problem that we're attacking and the solution that we're trying to bring to our customers. If we look at our platform, perhaps a little more closely, this is a big market. And where we're focused is on the part of the market that deals with complexity. So enterprises with a high volume of content, a lot of data around various systems and a large and diversified audience that they need to serve. We don't target the SMB. We don't target the simple. We target the complex, and that's where Coveo's platform really shines. And the good news is the enterprises that we work with, that's most of the enterprise segment who deal with data complexity, lots of volume of content and obviously, a large customer base on the other side. And what we're trying to do and that only AI can solve for our customers is improved business outcomes. And that's a large part of our value prop and what we focus on is how do we make sure that our platform not only brings a better user experience, but drives better business outcomes for our customers. What all of our customers have in common is at the bottom of this slide, their data is all over the place. Their data is contained in many systems. It's contained in various forms of data. It can be structured content. It can be unstructured content. It can be YouTube videos. It can be PDF documents. Company's data is all over the place. And at the top part of this slide, what our customers -- our intent on achieving is better points of experience, better user experience for customers and employees across their websites, their internal use cases, their e-commerce sites and the customer service. Coveo sits in the middle of this and helps bridge this gap of how do we bring together the disparate sources of data how do we do so in a secure manner? And then how do we serve the experiences that leverage our AI capabilities to maximize those business outcomes across those various use cases. We do so by securely connecting to these various source systems, whereby we respect the permissioning and the security that enterprises have invested millions of dollars in the building. We then build our -- what we call our unified hybrid index, which brings together a graph of where all this data exists. And then we leverage on top of that our AI capabilities to drive what we call relevance. And it's that layer that really sets us apart from many of the other approaches in this space. It's that relevance layer that drives the best business outcomes and can get to the best outcomes for our customers. From there, and what's new, and you heard a bit about this from Louis at the beginning, is we now serve the output of our relevance into a large language model. And that helps drive generative experiences and helps drive more interactive experiences for our customers. And we've seen some wonderful results, which I'll walk through in a couple of minutes. Of course, our platform is continuously learning, getting smarter with every interaction, and that brings incremental significant value to our customers as well. So that's our platform at a high level. We believe that this -- that our market is moving towards a single user experience, whereas right now, a customer may come to a website to browse, to get more knowledgeable, maybe they're interacting with a chat bot. We believe these worlds are coming together into what we call an intent box, whereby we can start to serve content like we've traditionally done through search results, which give you the ability to slice and dice. We can start to now generate answers through our CRGA product that Louis spoke to earlier, we have the ability to move towards conversational search, whereby consumers, our users can ask follow-up questions and a whole new digital experience we believe is coming to our market in a cohesive organized structured way. Of course, we need to do this and protect the things that are foundational and nonnegotiable for large enterprises. Large enterprises care an awful lot about security. They care an awful lot about answering questions accurately. It's a big problem in the generative AI space. Hallucinations is a well-known problem, inaccurate answers is a well-known problem. Because of our approach, we are able to significantly manage that problem for our customers and get them accurate results, and that's a big deal for enterprises. Of course, we also have to manage things like cost for enterprises. While they're trying to drive great results, they also do need to manage costs. And our platform addresses these 5, we call them the CIO headaches, but these are foundational items for every enterprise. Our customers, if I were to start with first, our CRGA progress or generative AI progress. We're now up to over 30 generative AI deals inside of our 700 customers. So we're off to a wonderful start here. It's with very meaningful global enterprise brands, companies like F5 Networks and others have signed up for our generative AI after spending a lot of time evaluating Coveo against the many marketing claims and pitch decks that have made their way into these large enterprises from various startups and other software providers. We would have said 18 months ago that Coveo would be the last to hype, first to results, and we're proud of our progress here in terms of tackling the Gen AI imperative for many of these enterprises. We've seen wonderful results of -- from companies like SAP Concur, Liftmaster, F5, Forcepoint, Xero Software, United Airlines and others who have all adopted CRGA and are seeing significant early ROI by using it. some really exciting opportunity for the company, and we're really pleased with their progress to date. We see volumes growing. So not only are customers buying, they're going live. They're getting results, as I showed on the previous slide, and our volumes and evidence of uptake, we've seen our own volumes increase 10x since January 2024 on generative queries that our platform is processing. So really exciting times in this respect. We do use Xero as an early adopter of CRGA. They are the customer who has used this platform the longest and consistently are seeing better than 20% case deflection since deploying generative answering for a company that has millions of customers to deflect 20% of the support cases and have those not -- have to be handled by agents represents a significant cost savings and a significant ROI for Xero. You can also touch and feel and see us in action at places like Dell, at United Airlines. You can start to see some of the experience that we think will be adopted over time whereby it's not just search results anymore. It's generative answering. It's the ability to slice and dice and see that generative answer, adapt to whatever slicing and dicing you're doing, asking follow-up questions, suggesting the next best question. These are all enhancements that we expect to see become standard experiences across enterprises as adoption continues. I'll try to wrap up and transition to our financial model. We are a subscription-based software company. That's important. We are not volume based. We are not consumption-based. Our revenue contracts are predictable and typically multiyear in duration. So that gives us a predictable revenue stream that we can plan from. We do serve our enterprise customers close to 200,000 average ACV per customer and our customers grow with us over time. We had a net expansion rate of 107% for the fiscal year ended March 31. For that fiscal year, we ended the year at $126 million in revenue, 94% of which was SaaS subscription revenue, which is great. So the vast majority of our revenue is recurring in nature. That revenue does carry an 82% product gross margin. I view that as a top decile performance. So not only is our revenue recurring, it's highly profitable. And the net expansion rate you see there means that it also grows over time. Once we get customers, those cohorts tend to grow. We did grow 19%, the SaaS subscription revenue growth line when excluding on the core Coveo platform, when excluding the Cubit platform, and as Louis mentioned in his opening comments, it was a year of significant cash flow and operating earnings leverage. We achieved positive cash flow from operating activities for the first time, plus 4%. And that was well ahead of what the company had been planning for. Of course, we're not done. We see lots of growth ahead, lots of ability to continue to grow the customer base, continue to expand inside of our customer base, see more and more of our customers adopting generative AI, see more and more customers adopting multiple use cases from us. And we're expanding internationally as well. We're off to a wonderful start in Europe and ANZ as we reported our Q1 conference call for the current year. We're leveraging partnerships and greater alliance relationships with folks like SAP. Yesterday, we announced our ongoing partnership and the next evolution with Salesforce. And you would have heard other announcements from us around folks like Genesys, Optimizely and others to come. So lots of growth ahead -- or lots of growth opportunities ahead that we are very focused on making sure we maximize. And with that, I'll wrap up the presentation part of the meeting.

Thank you very much, Brandon. This is Jeremie Ste-Marie, Senior Director of Legal Affairs and Secretary of the meeting. Before we conclude the meeting, we would be pleased to answer questions received from shareholders during the meeting and the presentation that were not yet addressed. For each question we answer, I will read out the question as well as the name of the person who asked the question and Brandon, here with us today will answer it. We will now give shareholders an additional 30 seconds to ask questions through the chat function of the meeting. Okay. Thank you all. It seems like there are no questions at this time. As such, this concludes this year's annual meeting, and I am hereby formally declaring the meeting closed. Thank you all very much for joining us today. We are looking forward to seeing you next year.