Eventbrite, Inc. (EB) Earnings Call Transcript & Summary

Great. Thank you all for joining us. I'm Heath Terry. I cover the Internet sector for Goldman Sachs. Really excited to have with us today the team from Eventbrite, Julia Hartz, Founder, Chief Executive Officer; and Lanny Baker, Chief Financial Officer. Julia, Lanny, thank you both so much for taking the time to join us.

Thanks for having us, Heath. It's great to see you.

See you. So just to kind of set the stage, we obviously have so much to talk about today, but for people that are watching in and maybe don't know Eventbrite as well, Julia, just to start out. What's the right way for an investor to think about? What Eventbrite is? And what it is that you and the team are building there?

Sure. So we founded Eventbrite in 2006 with the vision of enabling event creators in the mid-market to be successful. And the market itself is quite large. Our customers are professionals who are creating live experiences all around the world. We served 1 million event creators last year who produced 4.7 million events. And these are smaller, more bespoke events than you would typically think of when you think of ticketing. If the ticketing industry were a pyramid, we would be in the sort of fatty middle between stadiums and arenas and large-format shows, and RSVP events like birthday parties and backyard barbecues. And so our business model is strengthened by our self-service ethos. So we're a technology company first. We're focused on building a platform that not only enables event creators to be successful, but also saves them time and money and helps them grow their audiences as they continue to grow their businesses. And these event creators love Eventbrite because we're focused on meeting their critical needs, whether it's reporting, analytics, marketing, we're there to help their jobs be more successful, to help them grow their businesses. And certainly, there has never been a more important time for a platform like Eventbrite to exist. Because our mission is to bring the world together through live experiences. So in the era of COVID, this has become even more critical than it even has been in the past decade or so. And Eventbrite is in a position to win because of the business that we've built. We have a scalable, profitable product-driven model that's focused on the event creators themselves. And we're really bolstered by the beliefs and data to back it up that small events are going to be the types of live experiences that really help us rebuild the live experience economy overall.

That's a lot to sort of dig into there. And you touched on it. But obviously, this current pandemic has impacted businesses differently, particularly in the Internet space, with almost no live events being allowed or their size being severely restricted, Eventbrite obviously sits at the kind of far end of that spectrum. What has this been like for you and your teams to deal with? And where do we stand now?

Well, I think when we -- when you go back in time and think about founding the company and growing this platform, freedom of assembly was certainly something that we possibly took for granted, given the impact of COVID and the impact of the pandemic and the social distancing mandates, this has been a crisis that is -- puts us in rarefied air, let's put it that way. So while the business itself is really constructed to withstand many types of harsh environments, I mean, we withstood the Great Recession in 2008-2009 and we've certainly seen macro trends that are both tailwind and headwind. There's been nothing like this. And I think that our business is remarkable because of its durability. But more so, the company is entirely unique in terms of how we've weathered the storm. It was one of the sort of greatest impacts to the live events market that's ever occurred, if not the largest and certainly in our lifetime. So nobody has quite seen this movie before. And I'm really proud of how quickly we moved to really take matters into our own hands. And that was well before many people in our industry had accepted the disruption that would happen. We recognized the pandemic's potential to disrupt all gathering in early March. And we moved quickly to not only build tools to help our event creators, effectively reverse the growth engine in a short period of time, therefore, maintaining their relationships with their ticket buyers, but also shoring up our own stability in both cost structure as well as raising money for the future because we -- there was no benefit for us thinking that this would be a short-term thing. And I think that the companies that are in a position to win during this time or the companies that looked at the worst-case scenario and acted on that scenario, quickly became reality. But putting off the tough decisions would have ended the company, frankly, and we were in a really strong position from the beginning, and that I would attribute to the work of the team.

Yes. Earlier -- go ahead, Lanny.

From my experience, it has been for the first couple of months of the year, we were tracking along pretty well. And then all of a sudden, there was full reverse thrust, the engine started going backwards and were processing more refunds than we were ticket sales for a few weeks. It's been heartening more recently to see the engines trying to reverse again and roll forward in a positive direction. And this has been a period that has required an awful lot of nimbleness and decisive action. We've talked about the expense reductions we made, some strategic focusing that we've done. The way we've supported the growth of online events, which were up 30x from where they were a year ago in the second quarter. It's been nonstop action. And I am excited about where we are today. But it's been harrowing, for sure.

Yes. Well, you did actually put out some numbers this morning to kind of update where things are at the moment. Is it worth maybe getting into some of those in terms of what you're seeing right now in terms of the demand for events and where maybe the business sits from a financial standpoint?

Sure. Maybe I'll talk about the ticket growth and, Lanny, you can chime in on the advanced payout balance. I think there's multiple parts to the story, but the headline is that Eventbrite is ubiquitous in live experiences. So whether it's online events, which are up 30x year-over-year or it's in-person small gatherings that are easier to produce safely that are our bread and butter, we've seen since the trough in April, just this tremendous growth year -- or month-over-month, rather, which is what we reported today giving a more recent snapshot of the recent month. And I think that, to us, it's not surprising. We can see the data and see the pent-up demand for desire to gather, it's in the human experience, and we can also see the ingenuity of event creators meeting that demand, whether it's by pivoting their events to online experiences or by reimagining their events in-person. I think 2 great examples of that just to bring some more texture to who we serve is, on the online side, a event creator called Daybreaker is in-person, early morning, dance party, yoga, meditation gathering. And they have been operating all over the country in different cities for almost a decade. And right at the beginning of COVID, when all gathering was essentially shut down, they pivoted to a more frequent model, a weekly event instead of a monthly event, online. And now they've reached over 38 countries, and they have tens of thousands of dancers every week on Saturday morning. It's sort of like a Saturday service. And that's a business that's been established for some time that has now achieved a totally different value proposition of a global audience. Certainly, in the future, we see Daybreaker creating a more hybrid model where they have online and in-person. And then in-person, Cannonball Productions, they just launched their Seltzer Land's event, which is a hard seltzer tasting event taking place at golf courses where you come with your group, your small group has to be, I think, less than 12 people. And you travel the golf course tasting the hard seltzers with the seltzer craze that's going on. And I think that's a really great example of somebody who's taken a typically large-format event, and paired it down into more custom bespoke event that can still happen in a way that brings delight to consumer audiences. So those are just 2 of many, many examples that we have, but what we underscored in the information we shared today is that the growth of in-person events is coming back, particularly in these ways in which people can gather safely.

That's great to hear. Lanny?

Yes. One of the uncertainties that was large at the start of this cycle was our advanced payouts. And sort of how is this market of tickets that have been sold for events that were going to be pretty challenging to execute. Going to clear, how it's going to resolve itself. We had about $350 million worth of ticket proceeds that we had advanced to creators ahead of their events. And in preparation for wariness that there could be a rash of refund requests, and there could be challenges with the health of creators. At the end of the first quarter, we took a $77 million reserve for potential Eventbrite losses associated with that exposure. What's been really sort of heart-warming is how well this market has cleared. And I think there really have been 3 parties at work. The creators, by and large, have sought to do right by their attendees, and they've been forthright and forthcoming about communicating about cancellations, postponements, rescheduling and offering refunds. And we've seen well over $100 million of that advanced balance come back to us with instructions to return it to the attendees who have purchased those tickets. On the attendee side, we've seen great patience amongst the attendees and trust in their creators. These are often smaller events that people have personal passions and communities built around, and they know and they hope and they believe that the creators will be back, the events will be back, and they've been very calm. And then Eventbrite has, I think, stepped in and inter seated with a number of products and communications, things like ticket credits for future events that we've introduced that have also helped this market find equilibrium and clear in a way that, as of today, that $77 million estimate that we took originally, we've so far realized just slightly over $4 million of chargebacks and losses by Eventbrite. And importantly, during the summertime concert festival season, which is typically one of the -- those are some of the more precarious events in this kind of situation. They're hard to reschedule. There's a lot of upfront cost in them. Over that summertime season, we saw about $300,000 of additional chargebacks come in. So it seems like from where we are today, that whole clearing of the market is happening in a fairly complementary benign way, and we're here to continue to try to support and enable that going forward.

No, that's really helpful. Julia, obviously, the creators and the venues that you work with have been impacted by this in the same way that so many small businesses have. When you look across the health of that group, where are they, how ready are they going to be to restart when the opportunity arises?

Well, independent live music venues are a subset of our market, and they've been the most impacted. They were the first to close, and they'll likely be among the last businesses to open. And so we have poured our energy into helping those small businesses in any way that we can. We started in the early days of the pandemic by building actually a microsite to allow these small businesses to get to the front of the line, to get the information they needed to get the federal release. Then we worked with Congress to really make that more actionable. The original relief that was received wasn't very applicable to live music venues that add to immediately, in many cases, lay off their entire staff. And then we've doubled down on that by supporting the National Independent Venue Association and supporting the Save Our Stages campaign, which I think is a really, really critical effort that needs to be made if we want live independent music to live through this era. I think that these venues are incredibly resilient and these oftentimes are run by founders who have been putting decades of their life behind bringing live music to communities. So I have an optimism that there will be rebuilding, but it's going to take a lot of effort, and it's going to take time. And I think in the meantime, we're really focused on how can we help those venues stay connected with their communities. One of the things that we've observed is that there is this really strong bond between the ticket buyer and the venue. They want the venue to succeed. And so there's great adoption in things like credits to future shows, donations. It's been really heartening to see that, but I think it's a long, long road ahead. And the rest of the business, the business that's coming back faster, is showing a lot of nimbleness and resilience in our core customer, which are these event creators who are producing shows that are 30 to 50 people. And that's predominantly what's coming back right now in-person. I'd be remiss if I didn't mention that embedded in our business model is the strength of the Self Sign-On channel, which is 98% of our event creators historically come through the door on their own. We're seeing tremendous growth in that channel. It is down about 50% year-over-year. So it is driving the growth and the rebound that we're seeing, and we'll continue to focus on that channel because that is our competitive advantage and so all told, when we look at the landscape of the mid-market event creator, we think there are going to be segments that come back slower, and we're certainly not going to abandon them. But we are focused on how can we help the entire community of event creators start to really rebuild the live experience economy, it's exciting to think about what's ahead. That's what motivates me because I think there's going to be some acceleration of technical trends and different ways in which we gather. And we'll see a lot of innovation out of this time. But certainly, our focus is on supporting the event creator because they're the ones who are going to be rebuilding this economy over the next few years.

No, that's really thoughtful. I mean, I think something that we all want to see happen. Lanny, you touched on the balance for the APO balance before, a big part of your initial reaction to the crisis was to have to deal with canceled and postponed events and where those refunds or payments sort of had already happened. What did you see in that process? What have you seen in terms of the economics of where we are, where we are now, particularly with events that -- as we get into events that have been rescheduled and now we're starting to get on top of events that were maybe rescheduled to November that may not be able to happen now? Are we about to come on to a second wave of those same sort of issues?

Yes. So our -- the time that we paused the program, our balance was about $350 million. And as of today, it's about $230 million. And there has been some of those tickets that have been fulfilled with either in-person events or a new person ticket has been fulfilled with an online version of that event. But the single biggest factor driving that reduction in the total balance has been what I described earlier, which is creators wiring the money back to us, and we've remitted that back to the consumer for events that were eventually canceled. Of the remaining balance, we have seen postponements and we've seen cancel -- or rescheduling. Early this summer, if you were to go back to the late May, early June time frame, there was -- we saw people postponing events to the September time frame. Well, today, not too many of those events are happening. And as they are being re-postponed or rescheduled maybe a second time, we're seeing creators look further out. And so many of our events are being -- that are in that APO balance are being rescheduled and replanned for next summer. And I think there's a couple of key lines and that it speaks to the resilience, planning of those creators. And also the fact that as they've rescheduled things and postponed them, the attendees are standing with their tickets and saying, that's still a creator, that's still a show, that's still an event, that's still a class, that's still a conference that they want to attend. I can't attend it right now, and I wouldn't want to attend it right now, but hopefully, there'll be an environment down the road where that does happen. So as we sit today, as I described earlier, the market seems to be clearing in a pretty healthy way. We have Eventbrite interceded with product innovations to help people convert an offline ticket into an online ticket or to take a ticket for today and make it a credit for some future event that has maybe not even yet been announced. And those have been important facets of building sort of confidence and smoothness in this marketplace. So the advanced payout balance looked certainly a lot more threatening before. It's still something that we pay attention to on a daily and weekly basis. We've spoken to well over 10,000 of them and that's pretty much all of the creators who have advanced payouts. We monitor them and help them on a weekly basis. But as I described, it's been something that maybe not -- the reality of the market has been a lot healthier than I think we and maybe others feared, it could have been at the very start.

Julia, in the interim, you've mentioned you've seen this incredible growth, 30x and online events, virtual business conferences, book readings, concerts. I know personally, I bought more Eventbrite tickets during the initial stages of this pandemic than I did all of last year because I had more time, and it was a lot easier to attend live an online event than it was to actually find time to go to a concert or something like that. How big is that opportunity when you think about it longer term? Is this something that you actually can invest behind from a technology standpoint, so that Eventbrite has a bigger role besides just maybe the ticketing part of it?

I think that it wasn't so much a surprise to us to see online events take off quite quickly, knowing our creators and how professional and entrepreneurial they are, it was somewhat expected, but the growth was above our expectations. And again, I think that's more about the ubiquity of the Eventbrite platform as that enablement platform for these creators businesses. So they can both run an in-person and an online event on the same platform. And we've been powering online events, but it was about 2% to 3% of our business prior to this year. And so that explosion in growth does create a new opportunity for us. And what we're doing right now is we're focused on the core capability of the Eventbrite platform that will help any event creator be successful, but we're also using the technical capability of our platform to integrate deeply with Zoom, to integrate deeply with Vimeo, to really focus on how do we break down the friction of an online event attendee to drive better business performance for an event creator. And then what are the other elements that we uniquely can do as Eventbrite because this is where all of their data lives. And so when we think about the uniqueness of that, we can start to help event creators be more successful in pricing their events and thinking through the right formats that might work for their events. For instance, in the summer months, we saw this explosion of the sort of hybrid experience of folks like Murray's Cheese Shop in New York sending cheese physically to their attendees to then have a cheese tasting. And just like the sort of delightfulness of that, of the attendees getting that package in them being able to have that shared experience what drove -- ticket sales that also drove attendance. There was this commitment. We've also seen The Last Bookstore in Los Angeles, do that for their virtual book events. And these are businesses that have been around for a long time that are finding new footing with a larger, more broader audience, whether it's from -- far flung states that typically would not have experienced these events because they wouldn't have traveled for them or a global audience. And so we're just watching really closely to what our creators are doing, and then we're coming behind and making the product better, easier, more effective for them. And we're going to continue doing that. And so the product is just going to keep getting better, and it's all designed to meet the needs of the event creator, and I think that's the winning formula for us. I think that the online event space is really busy. There's a lot of new entrants. There's a lot of noise. I think the signal for us is how can we help our event creators just continue growing their business during this time and then have more options when COVID is in the rearview mirror to be able to have multichannels of revenue generation. In terms of our own monetization, we certainly want to reap the benefit of anything that we offer, that's value-add to our event creators. But that's further down the line. Right now, we're focused on that key best product experience that's going to keep event creators continuing to come back to the Eventbrite platform, no matter what type of event they're hosting.

Yes. And so you touched on it before. You obviously had to make a lot of really hard decisions around cost structure early on in this process. How would you characterize sort of Eventbrite as an organization as it is now and sort of what you can support as the recovery begins to happen? What you're able to do from an investment standpoint here, the self-serve investments that you've made, sort of where you stand organizationally?

Well, let me paint a picture. So in the beginning of March, this was this was something that we knew was coming in, again, only the paranoid survive, I would say, is the headline for that time. We immediately went heads down on if we could do it all over again, what would we do? That was the strategic question we asked ourselves. Might have seemed crazy because in the background, we were preparing our company to work from home. We were seeing our revenue go from normal levels to processing more refunds than revenue in a given day, all of that was happening in March. I'm really proud of the team for focusing on this opportunity to rethink the problem as an opportunity. So we asked ourselves, what would we do if we could do it all over again, which is not something a company at our stage often gets to ask itself. So being able to take really capitalize on that reset opportunity was something that I think drove us to making key decisions that by the beginning of April led to us removing $100 million plus from our annual operating expenses. The human element of that was extraordinarily difficult to lay off 45% of our company was heartbreaking. But behind that really tough decision was grounded reality of where strategically we needed to focus and where there would be no regrets in terms of a strategic path. And that's our self-service ethos, our product-driven approach and our -- the growth of the self-sign on channel. It's just -- it is our unique advantage and the fact that Eventbrite, that the Self Sign-On channel has such strong LTV:CAC is something that I think has not been established with any other scale ticketing platform. And I also think that it allowed us to make some very difficult decisions about where we're going to put our precious development resources. So coming out of that change, we are 50% development headcount, and we intend to continue to lean into that part of our business and continue to strengthen our platform. Just last month, we welcomed a new CTO, Vivek Sagi, who has 20 years leadership experience at Amazon and most recently at RetailMeNot. And I think that the timing couldn't be more perfect, and Vivek is someone who loves a great challenge and is a builder at heart, also experienced in building diverse and distributed engineering team. So a lot of really good, exciting things are happening. But certainly, we had to make it through that eye of the storm. And I think companies that come out of the other end are companies who made good decisions in the past, leading up to the crisis moment and then stayed true to who they are and really command and controlled that moment. And now it's about who's going to take the most advantage, make the most out of this opportunity, right? So we're not resting on our laurels. We're certainly taking every day as a critical day.

Yes. One big part of that obviously was the reorganization of the salesforce and this is focused on self-serve during the interim. Can you give us some context around the scale or sort of what that allows you to do from here? And as we do hopefully get into return to something that looks like normal, are there limitations that -- focusing on self-serve imposes, can you get back into those bigger festivals without having a direct salesforce?

Heath, our focus on self-service is going to enable the company to be more profitable. The gross margins of our Self Sign-On business are -- historically have been 70% range where the overall gross profit margin for the company has been about 60%. And then we look at reducing our operating expenses by over $100 million. And happily, we're running a little bit ahead of our plan in terms of dollars and timing on that as we dismantled some of the higher touch service infrastructure that we've maintained historically. So with that focus on self-service and with that change in our cost structure, as the industry recovers, I think, Eventbrite poised to be a very differently profitable business than we've been in the past. And with that, I do believe we will be able to invest, as Julia has just described, in our product and in our development, so that we're able to serve probably the broadest swath of the industry that anybody in our business is able to serve. We have a very specific focus on our sort of bread and butter, high frequency, independent, innovative, local, small, independent creators. And that's a multibillion-dollar market that we see tremendous opportunity to continue to invest in.

I appreciate that. I appreciate that, Lanny. Julia, music's obviously been a huge category for the company and one that you have invested in, and one that's obviously been heavily impacted by where we are now. Just so everyone kind of understands where Eventbrite music is and sort of how you're positioning Eventbrite music during this period that we're in now and what the strategy looks like going forward?

Sure. So I think first, to orient around music. It is one of the largest categories in all live experiences. And on the platform, it's much broader than venues, right? So it runs across category in Geo and is a big part of the Eventbrite ecosystem. And it's one of the fastest-growing on the platform today -- even today, although live music, particularly, as we discussed, live music and Venus has been decimated through this period of time. And so it will come back. I mean, it's one of the sort of magical parts of being a human is going to see live music. So there's no doubt that there will be pent-up demand. But I think that the shows that are going to come back first are going to be the ones that are smaller, that are more controllable where people feel safe to be there. I think it's going to be a very, very long road for larger shows and big format festivals. Second, I think in the question you had around where we've been with music and certainly in the chapter of acquiring one of our main competitors in the U.S., Ticketfly. That was really an example of us finding a place to play and where to win and looking at that segment of customer within music as a really interesting customer set for us. And I think the biggest lesson that we've learned in that acquisition and integration is the opportunity to strengthen our platform's capability to serve the core customers business versus just the event. And that's been really a foundational element now on our product roadmap for some time, which has then allowed us to better serve the frequent customers that Lanny just spoke of. And so it all sort of dovetails nicely together into what we're focused on from a product perspective, and that's really about driving efficiency for anybody who's hosting frequent events or producing frequent shows and really being able to support them in reporting analytics, marketing, to be able to run their businesses smartly and more efficiently and not need as much staff. And we've been alongside these venues through COVID really trying to help them elongate their runway and get the kind of relief they need. And these are core small businesses that make up the fabric of the United States. And so this has been something that I think has really compelled us to use our voice and to use that position as being an aggregator of these small businesses. And I think that when venues open or shows start happening again, our customers will find our platform stronger in its core capabilities and quite improved in terms of the product experience. And I think that, that -- these business owners are going to rebuild the live experience economy. That is something that I think is indisputable, but it will take some time.

Yes. Absolutely. How do you think about the competitive landscape in ticketing? I mean, we could probably spend an hour alone talking about the dynamics around what's happening in the transition to digital tickets, particularly in this environment with recent M&A and the secondary market and the lack of scrutiny from regulators. But how do you see competition and the opportunities that, that creates for Eventbrite?

As we think about it, let me just first say, to your point about the current environment, for everybody in our industry, this is a very difficult period of time. And that's why we acted very quickly, as Julia described earlier, to home in on where we see our greatest competitive advantage, our greatest business growth opportunity and our greatest return for shareholder characteristics. And I think from a -- as we sort of tend to our own house competitively by picking the right market and how we're going to serve that market and emphasizing profitable ways to do so, I think we feel capitalizing the company well, we feel pretty good about our competitive standing at this moment in time, in this industry, anticipating that there is going to be a very exciting time. That's already begun, but it's going to become even more exciting. And I think Eventbrite shows up to the starting line of that, very, very well positioned. I think it's reasonable to anticipate that we'll see headlines about others in the industry having challenges the longer this goes on. And there may be some opportunities in that. But we look at our own business. We look at what we know of our customers. What they're asking us for. What the needs of those frequent creators are, and we see lots of room to invest internally to continue to grow our share and our presence and our advantage in what really is Eventbrite's market that we've described a couple of times today. We'll stay nimble. We'll stay focused on self-service. And we think we've got a wonderful part of the market that really is ours to keep running well.

Thank you, Lanny. Julia, when we look at the consumer side of Eventbrite, how do you think about it from their perspective? How do you build Eventbrite into a destination? Particularly now, I mean, like you said, we all sort of have this enough demand to get out, to do things or even just to find things to do virtually when we're at home. How does Eventbrite become that destination for someone who's trying to find that 30-person gathering that they can do to hear live music outside in a safe environment as things do start to open up?

Well, I think that putting the right event in front of the right consumer at the right time has always been at the core of what we focus on as a company that drives discovery. Our investment in the consumer side of our business is really to bolster the business of the event creator and to really create that stickiness that match. And I think that this is -- this period of time where online events where we were transacting tens of millions of tickets in online events is actually also an outcome of how broad and scaled our community is. And so event creators are seeing in the upwards of 1/3 of their tickets being processed by our proprietary discovery channels because we have this incredibly broad global audience. And so I think that's also been a contributor to the online events growth story. And I think it will continue to be as we move forward here. We focus on that relevancy. So as we start to understand what a consumer is interested in doing, whether it's from their saved events that they've browsed on Eventbrite or their follow actions, so they could start to follow event collections or event creators, then we can feed in the relevant data for a better search and discovery experience. And ultimately, our eye is on the prize of driving more ticket sales for event creators. So in that way, our interest and our event creators' interests are completely aligned. And so I think that -- I think going forward, trust is going to be a big part of the equation for in-person events. And we have put together some really great content around that. We partner with the Chertoff Group to produce a COVID-safety playbook that will continue to refine and evolve over time that just really puts in place the protocols that event creators should be thinking about. But also, we're looking at how do we drive stronger communication in the event community itself because it's not just incumbent on the event creators. Sure, they're setting the scene, and they're setting the expectations. But it's also about what everybody is doing at the event. Are they following the protocols? Are they keeping each other safe, so that they can be together in these events. And satiate that desire to get together in person. So I think that this will be something that is with us for some time. And through the product, we're hoping to be able to build stronger signals on safety, what to expect when you go to an event, what's expected of you as a consumer, and then be able to feed you just much, much more content. One more point on the online event side, we've seen a 5x increase in attendance from the same attendees. So when we look at -- and what we're all doing with our newfound time, we are finding each other online. We're finding ways to connect through classes, through online shows. And we recently ran a consumer survey and over 60% of the respondents said that they had attended at least 5 online events in just that month. So you're not alone, Heath. This is something that people are doing. And it's spanning generations and -- and so I think there's just a fundamental consumer behavioral shift here that will not snap back when we can get together in-person again. I think it's here to stay in some realm.

Julia, I am always glad to hear I am not alone. Thank you, both, Julia. Thank you, Lanny, for taking the time to do this and to be with us today. I know how incredibly busy both of you are. So we really do appreciate it.

It was a pleasure. Thank you, Heath.

Thank you.

Thanks, Heath. Bye.

Bye.