Fastly, Inc. (FSLY) Earnings Call Transcript & Summary

Hello, and welcome to the fourth annual Wells Fargo TMT Summit. My name is Rich Hilliker, and I'm on the software team here at Wells Fargo. We're extremely excited to have Adriel Lares from Fastly, Chief Financial Officer, joining us today. Adriel, thank you so much for being here. We really appreciate it. It's great to see you.

Great to see you as well. And thanks for having me. It's been a really great day and looking forward to continuing the conversation.

Awesome. Yes. Well, we've got a great list of questions lined up here. And I'm excited to walk through them with you, and I'd actually invite the audience. If you have any questions throughout the session, feel free to e-mail me, and I can read them later on in the session here. My e-mail is Richard, R-I-C-H-A-R-D, dot, Hilliker, H-I-L-L-I-K-E-R, @wellsfargo.com. So feel free to send over an e-mail or any questions you might have, and we can incorporate those into the discussion today.

So Adriel, why don't we dive right in? I mean it's been quite a year. We're now 10 months into the COVID-19 pandemic we really believe that CIOs have been forced to reevaluate their strategies. And we've kind of coined a phrase basically where a no cloud is officially a no-go. So just wondering from your perspective, can you talk about how digital and cloud have manifested themselves in Fastly's financial results throughout the year?

Yes. And that's -- there's a lot in that question. And there's a lot to say. I really challenge folks to see what Bingo card is left. A lot of things have been checked off the box, the proverbial box, so to speak. And we've put out a number of logs and notations about how Internet traffic has changed this year, pretty dramatically and pretty sudden. We noted earlier this year around sort of the April, May time frame that school closures were a big driver of Internet usage. You had kids that were basically quarantined with their parents and having nothing better left to do and they're going to the device. And so you saw people being entertained online, parents choosing to shop online, parents choosing to do whatever they would normally try to do from a brick-and-mortar perspective online. And the good news for us is we had a lot of these digitally native or digital-first or digitally transformed companies that were already on this journey. So you're right, it was -- for them, they were well prepared. And the way it manifested for us is because we have a usage-based model, we see these results reflect itself in our financial statements in a more near-term way. So if we experience a sudden burst of usage, you'll see that reflect itself in the near-term financial results. And we tried to address that as best we could as we were trying to wrap our minds around what it would likely look like. And back then, we sort of noted Q2 would likely be a little bit more accelerated than it would normally be. And historically, Q2 was a flat quarter from Q1. That certainly wasn't the case this year. And we had also noted that probably, as we got the virus in terms of control, for the second half of the year, traffic would likely ameliorate for something akin to maybe something a bit of normal. Now since then, nothing has been normal. And I think what we've seen since then is more sort of unexpected results. But at least what we've seen more recently is in Q4, things seem to be getting a little back to normal. If you actually completely exclude whatever impact Signal Sciences would have to the Fastly business, our revenue guidance reflects the fact that it is -- Q4 is up from Q3, which is normally a seasonal thing that you would expect to see in our business. So that gives us a little bit of hope or a little bit of glimmer of that things are beginning to return back to normal. But this move to digital transformation has certainly reflected itself in sort of new customer account wins we have this year. So we've had great acceleration of new customer accounts. And we think that the idea of being digitally transformed is no longer an option. We just have to get there. And some folks are sort of more motivated than others, and we're more than happy to welcome them on our platform.

Absolutely. Well, that's great. I mean it's good to hear that the surging traffic has played into your favor. So I mean on that topic, on the topic of your guidance, we've seen the COVID pandemic. We've seen surging traffic. We've seen strong bookings levels in your results. And then at the same time, we've seen some large customer regulatory concerns. So it's been quite a year, quite a ride. The stock's been on kind of up and down here and there. So as 2020 comes to a close, I guess -- I know -- I'm not asking you to predict the pandemic per se, but what gives you confidence in a more stable trajectory for fundamentals for the year? And I know you're tied to usage, but help us parse through how to think about the upcoming quarters.

Yes. And so some of the things that we've highlighted in the past are metrics that we think that are really helpful the way that we look at the business. So our dollar-based net expansion rate. And that is effectively kind of like a same-store sales metric. And it was 147% in Q3. If you exclude our previously disclosed largest customer, it was 139%. So it says that the rest of the business is still doing relatively well. Our churn rate, we -- there's been no big change associated with that. And in fact, over the last 3 years, it's been less than 1%. So when I think about those fundamentals, our real key is how can we get more new customers onto the platform? Historically, from year 1 to year 2, a new customer triples the revenue. From year 2 to year 3, they're usually growing kind of north of 30% to 40%. So that sort of cohort growth, that trajectory has sort of fueled our growth historically. And nothing about 2020 sort of says that, that model has changed in the future. What you've seen is sort of these near-term impacts as a result of some of these extraordinary Internet usage impacts. But in terms of the core part of our business, we're still going after sort of legacy CDM providers, sort of showing them the value and the possibility of having a true programmatic edge platform. And now with Signal Sciences as part of our security portfolio, we feel like we're giving them a greater and more attractive portfolio in the future.

Absolutely. Well, there's a lot in there that I hope we can unpack here. But before we kind of get into -- it's great to hear, and I really appreciate your comment on the clarity on the customer growth from year 1, initial land, to year 2 and then afterwards. That's really helpful. Before we dive in the numbers and customer growth and some of your products, there's a question that we get quite frequently that I'd like to pose to you. And it's really around kind of how Fastly compares to Akamai and Cloudflare. And really, I'm just kind of curious if you can help us and help the audience for those who are kind of trying to wrap their heads around the space and all 3 companies. Can you help us understand the difference between the types of workloads, compute versus RAM and your servers and how they're composed? And I guess maybe the potential for product attach. So kind of helping us work through it, just help us parse through like how should we mentally bucket these companies to really understand because I feel like oftentimes, one of the first questions we hear is, well, Akamai dos this or Fastly does this or Cloudflare's in this world. Like -- and what does it mean? So I think it'd be helpful just for -- just briefly, and then we can touch on some products.

Sure. I think at a high level, 90% of the time when we're competing for a new customer, it's an Akamai legacy customer. So most of the time, we're competing against Akamai. And it's probably no surprise. Akamai is sort of the legacy provider. They've been dominant for several decades, much kudos and respects to them. They were a software first driven company, which we sort of differentiate relative to other legacy CDM providers. They're very definitely geared more to the software side. So sort of that's sort of number one. The other factor with respect to why we see Akamai more is they're really shooting for these more complex, more scaled customers. These are customers who have applications that really scale into the millions, sort of really high numbers of transactions per day. We're talking millions of requests per second. And this level of complexity and type of customer is not quite where Cloudflare is targeting. They're targeting much more for the long tail. I've sort of -- I thought of them, and much respect to them as well, as sort of the easy button when it comes to delivering their services. And they've taken more of like a network sort of security approach to the world, which, again, that's not been our approach. So where we will see cloud players when some of their customers sort of graduate from them onto a bigger scale and they're looking for lots more dials to sort of press or to turn, and that's where we tend to sort of take over from there. But going back to Akamai, where we normally compete with, the idea that you can actually program your edge, manipulate it yourself and not necessarily rely upon an e-mail to change a configuration or wait for workflow to work on your vendor side, in this case, Akamai side, we feel like that's an area where we can actually put the power of the edge in our customers' hands so they can manipulate it themselves where we can cache APIs, for example, and do it, as we say, automatically and just allow changes from their origin all the way to manifest itself to the edge with sort of no human interaction whatsoever. And that's something that's unique to Fastly, and it's something that's sort of the genesis of Fastly. So when you think about sort of our 3 core components through the delivery side, programmatic, sort of based on Varnish, and it allows customers to manipulate themselves, layer on top without adding a new physical hardware layer because it's the hardware piece, putting security -- and this is the security we already had before, but now with Signal Sciences, we can layer that on top as well. And many times, many of the purchasers of "CDN" are now buying security as a sort of requirement. You have to have a web application firewall. You have to have DDoS mitigation. And I think for us, we -- what we've seen historically and now we've seen with clients, just sort of a greater confidence that we can actually go do this and continue to sort of take share in these markets of which, again, back to the respect, is that Akamai has dominated for so long. And none of this includes any of Compute@Edge. And the promise of Compute@Edge is we've had programmability since the beginning, but Compute@Edge, the promise of that is it allows you to program in whatever language you're most comfortable in, compile it on our edges and deploy it worldwide.

Got it. That's such a compelling solution. And actually, it's a perfect segue into the next part of our conversation here, which kind of centers around some of your solutions, including cloud and edge. So I'm wondering -- you gave us a quick kind of overview of how it works and how you're able to deploy at the edge. I'm curious what you think about hyperscale cloud vendors and their positioning in the world of edge computing. And in terms of your core offerings, but specifically core compute because I know you recently launched that into production, but kind of curious of your thoughts around their positioning there and how you might work with them or compete with each other.

Yes, there's a few different ways to think about that. So many of these core cloud players are customers. Many of them are partners. And some of them are competitors. And so it's a bit of a mix of all 3. And I think the way that we think about it is we believe there is certain compute that should reside at the core. If you're working with the state of your data, if you're trying to take vast amounts of data and create an algorithm based on that data, that definitely belongs and is well served by the core, by any of the 3. And if you want to take the algorithm itself that you generated and you want to deploy it and actually apply it to your end users so that a user has a much faster and richer experience because it can take a data set that might be hosted at the edge and be able to choose more effectively, that is something that we feel that we can do. And today, we have certain customers that are doing that with our programmable edge vis-à-vis VCL, but now we want to sort of free them to sort of program whatever language they have. And so we feel like over the long run that there will be sort of a natural segmentation between core computing and sort of edge computing. And we believe to the extent that we're really effective and we're very efficient, if you are -- let's assume you put yourself into their shoes. If you're a core cloud provider, if you create a really fast edge, you actually make it less likely that you're going to use the core. And I think these days, there's a lot of competition among 3 about who's going to be first, who's going to win, and that's an incredibly big market. The way that we think about it is the edge cloud could be, call it, if you're spending $100 in the core, you're going to maybe spend $20 on the edge. And we think that's a still particularly good and attractive market. But for now, they seem to be very, very focused on that. And I think over the longer run, if Fastly is incredibly successful, which we plan to be, it may be something that they certainly want to consider how will that fit in terms of their longer-term plans. And you always have to treat them with tremendous amount of respect because not only do they have ready access to capital, but they also have technical capabilities, too. So there's certainly a mutual respect, but we historically have worked well them both as partner and customers, and we think we will continue to do so.

Got it. Okay. Well, that's really helpful. Why don't we switch gears a little bit and talk about another product, which I think is getting a little bit more attention now. You've been focused on Secure@Edge, and this is really a product of your recent acquisition of Signal Sciences, right, which you announced earlier this fall. So I'm just kind of wondering if you can help us understand. What does the build-out process look like? How can you -- how are you investing in this build-out? And maybe can you help us understand the picture that this now creates in terms of not only technology adding to the portfolio but maybe a cross-sell motion or an upsell motion that you can now kind of engage customers in?

Yes. So we were investing in security, call it, 3 years ago. And we were building -- and part of our approach there was building for scale. And so scale with DDoS mitigation attacks or scale for high volumetric web application firewall. And one of the great opportunities with Signal Sciences is just how much the alignment was already there. The founders came from Etsy, which was an early Fastly customer, this idea of creating security for developers. We have our mantra. We've been -- we built 4 developers from developers here. So we think there's a lot of sort of just good DNA alignment from that standpoint. And it's clear that Signal Sciences has got a very holistic approach to security. You can sort of turn on their WAF on full blocking mode, and you won't really suffer much performance impact. So we think there's a tremendous amount of opportunity to sort of blend the best of both worlds. It was sort of scale. It was sort of the more of the bespoke and the more user-friendly nature that Signal Science has. And we think there's also a really great benefit in the future for being able to accelerate customer acquisition because we've been doing particularly well before Fastly was able to be opportunistic to bring them into the Fastly family. In Q2, which was a really fast-growing quarter for us, they grew faster than we did. So we feel like in the future, there's a great opportunity to: one, cross-sell us into Signal Sciences' historical customers and vice versa, Signal Sciences into our customers. And then we have some shared customers already. So I think the future is bright with both of those. And a lot of what we're thinking about for 2021, this is our #1 priority, is integrate our new Fastly into Fastly. Most of the organization has already been fully integrated organizationally. And from a sales standpoint, we're going to wait until early next year to sort of begin to sort of formally blend them into our sales organization because clearly, they've been doing something right. We want to continue to foster that and let them do what they're doing and then learn as much as we can from how they're selling and what the -- and glean as much of the best of that into the way that Fastly does things.

Got it. Okay. Yes, well, that's really interesting and helpful. You knocked out a couple of my questions right there. So that's great. So I guess building on the acquisition of Signal Sciences. I'm wondering -- I know that you still have a bit more wood to chop here and integrate the sales force like you mentioned. But as you think about your portfolio now that you -- and you've already highlighted how important security is. Now you're really kind of doubling down on that and focusing there. Are there other areas of the portfolio that longer term you're going to try and address or areas that you find really attractive, maybe some adjacencies, whether it's organic or inorganic, some M&A or some sort of strategic partnerships? Just kind of curious how you think of the landscape and how maybe M&A and organic investment falls into that landscape?

Yes. The -- in some respects, the approach to how we came to the conclusion that Signal Sciences were a good fit for Fastly is actually informative to how we might think about others, inorganically or organically. But let me just go down the thread of inorganic. And in some respects, the buyer that they were selling to is very similar to the buyer that we were selling to. And that buyer from a security standpoint is not your IT security buyer, and this is a little bit of what Cloudflare does and a little bit of what Akamai does. And from our standpoint, we wanted to make sure that we're in as much sort of alignment as possible in that regard because there are many things that you could put on to the Fastly side of the network. In fact, if you think about companies who actually own a physical infrastructure, let alone one that's as efficient as ours and what you can layer on top of it, the real question comes, well, then what is it going to cost to go sell to that buyer? Is it a different buyer than what you have today? And I think in the Signal Sciences case, it was very aligned to what we were already doing. The integrations were already out there with some of the joint customers that we have. So it made a lot of sense just from a go-to-market strategy. So if we were considering something in the future, you can imagine within security, there's a lot of different layers of security, a lot of different areas to protect that would definitely benefit from a very highly efficient network such as ours. But the real question is, do we have the go-to-market alignment? And are we willing to go invest into a different buyer or a different selling motion? And I think we'll consider that as we consider sort of inorganic opportunities going forward.

Okay. Great. That's really helpful color. Before we switch over to financial results, just a reminder to investors, if you do have a question, feel free to e-mail me at Richard, R-I-C-H-A-R-D, dot, Hilliker, H-I-L-L-I-K-E-R, @wellsfargo.com, and I'll read your question on the live stream here. So let's dive into financials for a little bit here before we open it up to the floor. Earlier in the conversation, you mentioned that from year 1 to year 2, you've seen customers frequently double. I guess I'm just wondering if you can help us clarify a little bit on that point. I know each customer's journey is different. But could you maybe help us with some of the initial use cases that have led to the larger Fastly implementations? Kind of looking for like a life cycle, how do they graduate? How do they get to that doubling in spend? And then you mentioned, I think, 30% or 40% growth after that. Kind of wondering, I guess -- maybe that's the first question and then I have a follow-up on it.

Sure. So definitely, in our sort of stairstep, land, adopt and then expand. And in the land, the use cases that we typically find is usually areas that we're trying to highlight what a legacy provider cannot do. So can a legacy provider enable a programmable edge? Can a legacy provider catch something more sophisticated such as APIs? A lot of those use cases are usually -- if a company is digitally transforming, those are the new applications. And so if you have a new application, you're not suddenly going to let go of what you were doing before. So there is a situation where a legacy provider could still maintain a customer. We can start in relatively small in our land phase. And then actually, all the growth comes to us. So you can actually continue to grow as they shift traffic to the thing that is "working" and then not necessarily grow what they were previously doing. But you don't necessarily have to deprecate it. So oftentimes, whether it's in e-commerce or whether it's financial services or high tech, we're sort of trying to find that wedge that's something that we uniquely can do. And there's one well-known retailer that I'm sure you shopped at before that is national in scope here in the United States. It has a store locator. You go to the website and there's a store locator. And we were able to do that at fully at the edge without having to go back to central server. And that was something that uniquely we could do. There was a sort of a well-known attack that the rest of the sites went down, and we were the only thing that stood up, which was incredibly useful as a store locator [ as well as ] it was. But it did highlight to the team that, oh, my goodness, like, look, that's [ made ] up, what other things could we do there? And it's those sorts of anecdotes where it inspires a leader or a user within a company or a customer to think about the what if and what they could do with Fastly. And then normally, you go through that motion, and then that leads to that 1x to 3x, then 30% to 40% growth.

Got it. Okay. That makes a lot of sense. Building upon the tail end of your answer there, I'm kind of wondering if you can help us understand how attach rates have evolved throughout this year specifically, just being that it's been kind of a unique year. I'm kind of wondering, are there any specific products that you've seen this year really see a lot of uptake?

Yes. I would say it's -- there's really not one I can put my finger on because I know there are examples where folks have decided to take a meeting, decided to deploy purely on the promise of Compute@Edge. Some have taken on meetings or we've gotten an opportunity because of Signal Sciences. We have given that Slack has been in the news, I was just noting to you earlier, we have internal Slack channel associated with wins. And I can -- just great to see the wins, and many of them are coming from vis-à-vis Signal Sciences. So I think there were -- we're trying to keep our options open for whichever opportunity avails itself first. It allows us to just land, whether it's a security angle, whether it's a delivery angle or whether it's the promise of Compute@Edge. Any one of those for us allows us sort of different ways to just get our first foot in the door. And what we've known is based on our dollar-based net expansion rate is once they're here, they tend to grow. So our key sort of objective is get new lands because the lands tend to expand.

Got it. That's great to hear. It's good to hear that they can -- once you land, they keep growing, and feedback has been strong from customers. So congratulations on that. I actually have a couple of write-in questions e-mailed in here. Why don't we hit a couple of those, and then we can go back into some of the financials. One is regarding your -- it says, when are you going to be finished looking for the Head of Sales? It sounds like you're hiring for a Head of Sales. Can you give us an update on that process? Any time frame that you think that might be concluded? That's the first.

Sure. Yes. So we're in the process of doing that today. We're actually doing some good, hopefully, final round interview, so to speak. So my hope is that by the time we integrate the Signal Sciences sales force, we'll have a CRO in place.

Great. Okay. That's exciting. Well, congrats on that. I hope the interviews go well. The second one -- the second question I have here is, what is Fastly's approach to balance usage-based and fixated pricing? What would be the right balance in the long-term? And how dos Signal Science fit into this vision?

That's a great question, and it's one that I've spoken about actually sometime today and yesterday, which is Signal Sciences is a traditional SaaS-based business. And based on sort of the anticipated usage or the anticipated protection that you're going to need, they sort of bucket you in certain sizes. And I think that there's a real value to that. One, there's a value in predictability for the customer. But there's also commensurately a value for me as CFO, which is it also allows value from a predictability of revenue. And as the usage-based business for myself, I can certainly attest to the fact that there -- sometimes there can be extraordinary things that can impact usage both to your benefit and both to maybe not as much of a benefit. And so having that as part of our sort of revenue base into the future, I think, is a real positive thing and certainly something that we are looking at and considering, which is one of the main reasons why we're enabling the Signal Sciences sales force to go do what they're doing because we kind of want to learn how the sales cycle goes, how those renewals go into the future and just generally how that business operates because I do think there's an opportunity here to leverage -- sorry for that background -- to leverage a bit of that for revenue predictability from a FAS perspective for some of our customers wo aren't necessarily the largest.

Got it. Okay. That makes a lot of sense. I actually have a follow-up kind of on that last question there. I think on your most recent call, you talked about gross margin improvements of, I think, almost 400 bps, right, 370 bps year-over-year. And you mentioned that you're going to be making some personnel and infrastructure investments. Just kind of wondering what you're experiencing in terms of balancing usage-based pricing versus fixed pricing. What are you balancing in terms of capacity utilization? I'm just kind of wondering, how should we be thinking about further investment in this area just to build -- to support all the demand that you're seeing and the trajectory and the digitization trends that we've been talking about earlier?

So it's a great question, and it's one that has made my job as CFO challenging. It's a complex challenge because we're balancing a number of different things. And so let me give you a few different ways to think about it and sort of further go down this rabbit hole. So if you think about sort of our media portion of our business, which has streaming and has a number of other things, that's probably today about a 50% gross margin business. If you think about our nonmedia business, think about e-commerce, think about high tech, think about financial services, that probably averages more like 70%. And when you blend the 2 together, you get to around the sort of 60% that we're sitting in today. Now in the future, both businesses are going to benefit from us better utilizing the network that we have. And what you saw in Q2 particularly is just a better utilization of the network, utilizing our colocation facilities of which we're in 55 markets. We think we need to be in about 100 to serve the world. And so we're going to begin to get leverage there. The number of people that we've had to hire in the past to keep up with the growth of our network, at some point, we're going to get leverage there as well. We've shown it historically, but folks will begin to -- we want to have to sort of hire at the same rate. And then as we add in Signal Sciences like revenue, and we've talked about -- in the past publicly about the fact that it's about an 80% north -- or north gross margin business, as you layer in that particular side of the business, that clearly is going to have an uptick. And then if you think about Compute@Edge, both security and Compute@Edge both benefit from the fact that it doesn't require a lot of bandwidth. Today, bandwidth is about 30% of our cost of revenue. So when you don't have that already, it gives you sort of a good uplift from a gross margin standpoint. So it's -- there is -- yes, there's the overall leverage of the network, and that will sort of affect all customers. But then there's also just the layering out of new markets that we go after and new verticals that we're able to further penetrate with portfolios such as Signal Sciences and with new products like Compute@Edge. And as we begin to layer those in, you should begin to see some natural uptick to gross margin. Generally, as you think about year-on-year, when we first went public, we talked about adding 100 basis points or maybe a little bit more on an annual basis. And that's why I didn't also guide quarter-to-quarter because there are fluctuations that can occur. Clearly, this year, we're going to add a bit more than that. And then as we go into next year, I think what you should sort of take away is that we have even greater confidence that we're going to be able to get there, is that we've now got additional security portfolio, and we're going to have the recently launched Compute@Edge portfolio that will help us drive leverage in the business.

Got it. Okay. That makes a lot of sense, and that's helpful color into your gross margin profile and how you're thinking about it. As we near the end of our session here, I have a couple of wrap-up items that I was hoping to cover together. I know you talked a bit about how security is really a focus. And obviously, completing -- we're finishing implementing Signal Sciences and really focusing on the security side as a priority. But I'm wondering if there's any other -- anything else on the top of your to-do list over the next 12 to 18 months that you'd highlight, kind of things that are on your mind or areas that you're trying to drive the business here?

So yes, that's sort of our #1 priority. It's really integrating Signal Sciences, really doubling down on security in 2021. But right behind that really is leaning as much learning as we can from Compute@Edge. And we have customers today using Compute@Edge. We're really focused on determining what are the best use cases, what is the right pricing. I think the model itself for pricing is pretty well-established by folks like Amazon and some of the other core cloud players about how you price compute. But from our standpoint of at the edge, what is the compute that makes the most sense, some of the obvious things that have come out has been things like personalization. But there are many other things that we have been surprised to see about how folks are thinking about this, which is great to see, but I also think, which is we're really going to focus on 2021, is to learn as much as we can. So we have a good amount of momentum going into '22.

Got it. Okay. That makes a lot of sense. So a multiple-choice question for you. I know that it's hard to predict demand. You have some usage-based income coming in here. But what are customers indicating in regards to 2021 budgets? As we come towards the end of the year here, what's the tone from customers? How are they thinking about project prioritization? Is there any color that they're kind of offering to you that helps you to frame how people are really starting the new year in just a couple of weeks here?

It's probably more of a plea, which is, I think they're pleading for predictability. And what I mean by that is from a planning standpoint. So planning when certain events may occur, seasonal events they've counted on in the past. If you think you're going to do a flash sale in the middle of the summer or you think you're going to see the Masters in May as opposed to November, things that have played -- had been a bit of a challenge for many of our customers to sort of plan their deployments and plan how they're going to use not only vendors ourselves but other folks as well. So I think it's probably been the #1 thing. And the more that we get clarity, hopefully, for all of our sakes on how the vaccine will roll out, I think you're beginning to see impacts to that in terms of like more predictability in terms of how they're going to plan. And to me, once you plan, now you have something to build around our ability to sell against an opportunity in the future. But one of the other sort of flip side to that is it's also -- 2020 has opened up a lot of opportunity in the sense that folks who thought they needed to digitally transform now know they need to. So it becomes no longer an option, which is how we started this call. It's no longer a no-go. It's kind of like how are you not doing this. And so I think those are the opportunities we want to take advantage of.

Got it. Okay. Great. So it sounds like a lot of projects on the horizon here. Customers are prioritizing your relationship with them. So hopefully, that means budgets are up, and they're heading your way. So that's all the time we have. But I want to thank you so much, Adriel, for joining us. Thanks, everyone, for joining. This is a great discussion. And please attend all the other sessions that we have coming up here. So thanks again. We really appreciate it.

Thanks for having me.

Absolutely. Take care.

Bye-bye.