HealthEquity, Inc. (HQY) Earnings Call Transcript & Summary

Good afternoon, everyone, and welcome to the JPMorgan Healthcare Conference. My name is Annie Samuel, and I'm the Healthcare Technology and Distribution Analyst here at JPMorgan. We're thrilled to have HealthEquity this afternoon presenting. With us are CEO, Jon Kessler; and CFO, Tyson Murdock. We're going to have them do their presentation, and following the presentation, we'll do Q&A. [Operator Instructions] And with that, let me turn it over to Jon.

Annie, thank you. Good to see everybody. And we will try and be as brief as we can here, so there's plenty of time for questions. I'm using a presentation. I'll do my best to guide folks along as we go, starting on Slide 3. HealthEquity is a market leader in the market for health savings accounts and related administrative services. Kind of key metrics for our business are about -- we -- and we gave this guidance on Monday, we will end our fiscal '22, which ends January 31, to confuse all of you, with about 7.2 million HSA members, that's plus 20-something percent year-over-year; about pushing $20 million -- $20 billion in assets, that's plus 38% year-over-year and 120,000 employer customers, also plus 20-something percent as well as, of course, our network partners and the integrations with our partners and clients that make what we do special. Worth probably taking now -- looking at Slide 4, taking a step back, introducing the company to those, who are new to it and maybe reframing the market as we've gone through COVID. We are in a market that will deliver strong, steady growth for a long time, as it has over the last decade. But it's also important to understand how that growth is evolving, right? Today, our market is about half HSAs and half of the ancillary services, and so is our revenue. And the ancillary services are primarily service fees. HSAs increasingly are driven by custodial fees and interchange revenues. Those are the 3 kinds of revenues we generate. As our market grows, and we anticipate about 10% CAGR over the course of the next decade, the primary source of growth will be HSAs. And therefore, the primary source of growth will be high-margin custodial revenues. And so our job turning to Slide 5, if -- by the way, if I lose the slide count, I'll never get it back because I can't actually see the slide numbers, for those of you who don't know me. But in any event, I think I'm good for the moment. Our job is outgrowing the market. And we have done that for the past decade, measured in terms of all key metrics or market share or assets or accounts or what have you. And we will -- have done it, I should say, by expanding our ecosystem on the distribution side, by using -- by helping that ecosystem use our proprietary technology to help consumers connect health and wealth, which is our mission and also the bullet on the slide. So I want to talk about how we intend to continue to outpace top line market growth and how that translates into margins. The first is by selling more health savings accounts than is our market share. And we were pleased on Monday to deliver what for us is, and for anyone in the market, is record HSA new account openings for the fiscal year that is about to end. Just kind of to get a feel for it, we have been hovering around the kind of 650,000 to 700,000 new account openings for a number of years now. In calendar -- middle of calendar 2019, that is to say, fiscal '20, we acquired the ancillary consumer-directed benefits business, WageWorks, who was a leader in that space. And we predicted that, that would ultimately help us get more shots on goal as it were because clients wanted to buy both those things together. We knew that. The pandemic sort of obscured that a little bit because the whole market saw kind of a level of reduced growth. But if you kind of now, with the benefit of a little bit of hindsight, it is pretty clear that we are winning more HSAs as a result both of our competitiveness broadly and then the fact that we have a total solution that works for different types of distribution. The second thing we can do, and now I'm on -- or we are doing to win more than the market, and now I'm on Page 6, is that we are expanding our ecosystem. So HSAs are originated in 4 primary ways. The first is through health plans where we have, by far, the largest footprint of partnerships. And we're fundamentally a partnership, as I'll probably talk about later, kind of an open sandbox type of company. The second, smaller but growing, is by retirement plan relationships, and we are growing our share of those every year. The third and fourth are different versions of employer/broker direct sales, and we have #1 mind-share among brokers as well as -- as you know, we saw a 20% growth in our employer base this year. And then lastly, is everything else. And everything else includes, for example, individual HSA sales. HSAs are like IRAs, they're individual accounts. Though they're primarily initiated in the context of employment and benefits, there is a small but growing individual market, and we began to work on that this year. And we managed to increase, although off a small base, by 4x the number of funded individual HSAs that we opened. And what's nice about these accounts is they open with much higher balances. So if you now go to Slide 7, what does it mean to have an ecosystem? And what is it -- why are we expanding our ecosystem broadly? The biggest reason, and this is -- if you leave here with nothing about this company, this is one thing you need to understand about our competitiveness is our efforts to make our product consumable, for lack of a better metaphor, by our partners and ultimately, end customers, members, in any number of different ways to make that as easy as possible. And I really believe that we are beginning to make leaps and bounds in terms of the ease with which our product can be consumed. And therefore, the different places you're going to see it in our partners' ecosystems. And the BlueFit product that Massachusetts Blue Cross Blue Shield rolled out in November is a great example of that. Mass BCBS was a partner of another company that takes more of a software approach to our business, like we'll do the software back end, don't worry about us. And came to us in part because we can, on the one hand, provide the full service, but on the other, we provide the flexibility now to embed it in so many different ways. And so BlueFit is an insurance product. It's not an HSA. It's insurance product with an HSA embedded in it. And it has things like -- Massachusetts wanted to have a product where there were different ways that individuals could get rewarded. I gather their view is that the demographic for this product is one that responds very well to small perks that happen all the time, and we were able to accommodate that. They wanted a product where the messaging back to the member could be managed through their systems rather than through ours, but yet generated through our systems. We were able to accommodate that. Ultimately, we will have all kinds of different ways that we can serve up our product through our partners and through our clients, and that's just going to help us grow. The other way that we are able to outperform and that we're very pleased about, given our mission to connect health and wellness balance growth. So if you look at average balance per HSA, right? This number, and now I'm on Slide 8, I think. Yes. Has -- in the last 3 years, in particular, has grown very dramatically. And this is -- clearly a piece of this puzzle is the fact that the component that's invested has grown. And yes, that's also appreciated. In other words, we have market net asset value growth. But the biggest source of this growth is more contributions right? And so we're seeing balanced growth. We're seeing more investors. And that's happening if you turn to Slide 9, and in part because we've been able to really up our game in terms of how we educate and engage our members and even our prospective members. And an example of that on prospective members is what we did this open enrollment season. This is our second year of 100% virtual open enrollment. Virtual is fine. That saves us the money, whatever. But what's really valuable is virtual and personalized, both in terms of what is being delivered and how it's being delivered. So we're able, this year, to deliver far more, and this will continue over the course of the next few years, that is relevant to you as an individual rather than just a virtual delivery of a standardized benefits package as well as having live support online, on-demand 24/7. Acquiring portfolios on top of organic account and asset growth has been a valuable strategy for us. We like this as a good use of shareholders' capital because we can look at IRR and feel really good about what we're going to get before we go. We have had a couple of nice acquisitions this year on the portfolio side. We have one on deck for -- to complete in March, HSA administrators. Each one of these has given us a little bit of channel improvement as well in the case of Further quite a bit, and so that's a great use of capital, and we can talk about that a little bit in the Q&A if folks would like. And then finally, in terms of our opportunities for growth, there's improving yields. Of course, it's the case that all of us are looking at markets and seeing improving interest rate environment and so forth, and that's great. But I think -- and we've seen that in improving yields on our HSA, cash that is deployed in bank deposits. But to me, what's most interesting here is the shift in our HSA cash from bank deposits to annuity-backed products that we refer to as enhanced rates. And this is more of a secular shift that we made a decision now, I don't know, sometime early last year that we would drive. That we felt this was -- it's one of those cases where the future is here, it's just not evenly distributed. And we had a product in this space for 6 or 7 years that gave us information that told us how consumers would behave. We looked at who within the industry had the most information on how to do this successfully, that was the team at Further. That was a significant reason that we went after Further. And I think this is going to be a huge source of growth for us because, as the name implies, the enhanced rates products generate more custodial yield for HealthEquity as well as generating a higher yield for our members. So that's going to definitely be great. So all of those are growth drivers for us over the next few years that, in my view, can allow us to outperform the market. I want to say a little bit about CDBs, the consumer-directed benefits that are more administrative services that we provide. This is our flexible spending accounts, commuter benefits, COBRA, that kind of thing. As I think those of you who follow us closely know, this was a significant source of unwelcomed data in the model in fiscal '22, the year that's just ending. Outperformance in Q2, underperformance in Q3. We pride ourselves on the fact that we have delivered 30 quarters, including all of those, of meeting consensus on earnings, but we missed on revenue in Q3, and we don't do that. And I can assure you, it's not something we intended to do. That having been said, the solution to that unwanted data from our perspective is threefold. First, it's growing the HSA business -- first and foremost, it's growing the HSA business faster than the rest of the company. And for all the reasons suggested earlier, right, we are going to be doing that. Second, right, it's looking at how we price the CDBs, particularly things like commuter benefits where now we see that there's much more variability. We're not just going to assume that things like this pandemic will never happen again. Also, you have more variability in how consumers are going to behave with hybrid work so that the revenue stream is more predictable and stable. And then third, we're going to look at opportunities where we're doing stuff we don't need to do. The way I think about that is we want to -- I'm going to say this, when you're looking at 2 uses of your capital, including current uses, and you have IRR, IRR with less beta is more valuable than IRR with more beta. And so we're going to look at that stuff, too. So I won't belabor the remaining slides on our metrics. Except to say, obviously, we are reporting -- we reported on Monday, very healthy growth as well as a firmer guide on HSA cash yields for the rest of the year. And then lastly, to say that one thing that you can count on with this company is a relatively conservative management of the capital structure. And I really credit my colleague and friend, Tyson Murdock, for making some good calls over the course of the year that now leave us -- while we are 3x leverage, we're at a place where the tenor of our leverage is very long. The bulk of it is in a brand-new 8-year high yield, and even though we are in the 4:30 Wednesday time slot, JPM led that process, so maybe that's why we didn't get the Thursday noon slot. But nonetheless -- and then the remainder is in TLA that's 5 years out, and so we're in great shape in terms of not needing to go back to the capital markets for anything for a long, long time, even as we may pursue some of these portfolio type acquisitions. So that seems like good call on Tyson's part. With that, I'll stop, and let's see where -- and thank everyone for listening, and let's see where we go from here.

Great. Thanks so much, Jon. We're going to open it up for Q&A. [Operator Instructions] We have a lot of questions rolling in, but I'm going to take the first one. Jon, can you speak to the HSA market backdrop coming out of COVID? Do you think anything has really fundamentally changed in terms of underlying demand for the product?

I don't think that there have been fundamental changes. I do think in a more competitive labor market that we see now and one that is more driven by -- for lack of better term, the numbers, there is some tendency on the part of employers to more consistently contribute to the HSA. A high percentage of our employers already do that. But we see that, and so I think that's a good thing. So that's probably the one item that I might point out that as the labor markets become a little more national now with remote work and the like, it's just a more numbers-driven thing. So saying I offer good health benefits doesn't really mean anything. Saying I contribute dollars to an account is something people can kind of add to their calculator. So that's one piece of it. But I don't -- I think fundamentally, we're returning to the market we saw pre-pandemic, where on the account side, we're adding something between 2 million and 3 million accounts a year. And we don't have data yet for the year that's ended just now, but I'm fairly certain that we'll be in that range and that we will have again taken market share within whatever the market has.

Great. Okay. So I'm going to start to see some of these questions from the audience. The first one is regarding HSA growth. How much of fiscal 2022 do you think was pent-up demand or delays because the average fiscal '21 and '22, is it about that average level 770,000?

Yes. I think there's a lot to the way the questioner's thinking about it. Certainly, I -- broadly, I tend to -- I'm an econometrician, I like trend data and like you smooth out the little bumps and you see what's really happening. And that's the way what -- that's the way that feels to me. If I look at particularly our enterprise sales, that's where we did see pull forward, and that's not surprising if you sort of think about the way enterprises make decisions. So I don't think that what the -- I think the questioner's point is very reasonable.

Okay. Next question from the audience is you gave some introductory statistics for your year-end HSA accounts and custodial assets on Slide 3. What would those growth rates plus 20% HSA accounts and 38% custodial assets have been if you strip out M&A?

Yes. So on accounts, we would have -- so if I look at HSA accounts alone, and Tyson will correct me if I'm wrong here, I believe this -- that we had a 14% growth overall, 11% organic. On assets, it's 38% overall, 22% organic. And assets are probably the one that's most variable between now and the end of January for reasons that are perhaps obvious, and so we'll see where that actually ends up, but that's kind of where we are right at the moment. And both of those figures would have -- from our perspective, again, we don't have full market data, but looking at the last reports and the reports that some of our competitors have put out earlier than us because they have December 31 fiscal years, it seems pretty clear that those are going to beat the market heftily. The last report on market account growth -- again, although I think it will come up from here with 6% account growth, and we'll see where the assets end up. But I think we're going to do just fine relative to the market.

That's great. Okay. Next question is, how will your cash yield target unfold over the year? Is it a slow guide to 1.55%, or do you anticipate the yield dipping below 1.55% and trending back to that target? How much of the yield target is tied to things under your control, like moving deposits to your Yield Plus, versus things outside your control like the deposit market and Fed rates?

Tyson?

Yes. As you know, just looking at history, the question is a kind of quarter-to-quarter guidance, right, which we don't give. But you'll see from history that essentially, that's an average rate of 155 basis points, and we said at or above. So where we're going with that is we can put more assets into the enhanced rates accounts and of course, we get a higher yield there. And of course, we're placing a little bit higher on the FDIC side, so hoping to do better than that. But it is true that it will -- it is an average. So if you look at Q4 of next year relative to Q1 of this year, that, of course, is likely to be lower. But then as we look at the next year's full year average rate, that should be higher.

I would just add -- just add one other point. Oh, go ahead. Go ahead.

Go ahead, Jon.

I was just going to add in response to the question about the role of potential Fed policy in our guidance, we do not assume anything about change in Fed policy as we construct guidance. There is a portion of our HSA cash that is held in fully liquid accounts that are sensitive to overnight rates, and it's about 10%. So a way to think about it would be that a full year of 1/4 basis point generates about 2 to 3 basis points on an annualized basis for us. So if you want to plug those in, you can. We don't, because the Fed dot plot is always long.

Tyson, how much of the 1.55% yield this year includes that enhanced rate? Or is that something that we should expect to benefit you more in future years?

Well, definitely it is going to benefit us more in future years, but we're expecting to have about 10% at the end of this current fiscal year in enhanced rates. And then what I would say is that we will have an objective that maybe 10% more in the next year and so on and so forth, right, until we get to a point where we're diversified. And of course, it's still on the ladder. We kind of want to put it in -- in tranches like that so that we can move through the rate cycles over the years and then come back to those. So -- but I think about 10% a year would be the objective.

That's really helpful. Next question is, can you walk through an example of what a 10 basis point of yield improvement means for your EBITDA margin recovery? And then what is the enhanced rate product mix as a percentage of custodial assets today? Do you think you kind of [indiscernible]?

Yes. I think Tyson just gave you the last answer. The first part, so it's actually pretty easy to think about, right. We will end the current fiscal year with about $13 billion in HSA cash, that includes both new deposit products and enhance rates. And so the math kind of goes like you add 10 basis points, you had $13 million, assuming you were doing that for a full year. I'm only -- I'm always afraid I get those things wrong and then someone, like, I'm going to get a call from -- I mean, I have a master's degree from Harvard, and I feel like -- and it's in -- I feel like some -- one of my econometrics professor is going to call me, like, you're an idiot, Jon. But I'd quite be honored if they would just call me anyway. So -- but I want to make one other point here, which is I think this is really important for those who are analyzing the company as a long-term holding, I think we're making 2 points here, and it's important to separate them out. One is the shift towards enhanced rates is going to, on a secular basis, make the product just more valuable. And other people are going to do it, too. right? They're going to figure this out as they should, and they're going to do it as well. And that's fine, right? I think that's just the way the market is going to go based on the behavior of consumers. The second thing, though, is I think we also should realize that rate behavior itself is more cyclical. So I think it, actually, is pretty useful. If you look at the last 2 years, you say, okay, I don't know what the like "normal" Fed funds rate should be. Clearly, the Fed doesn't totally know. But let's just, for [indiscernible], say it's [ 2.25% ], right? Well, the implication is that looking at this year, fiscal '22, where our average is 1.75%, right. The implication is that we've left -- and again, I'm for the moment, just forgetting about premiums or complexities, I'm just kind of using a normal -- assuming conservatively that a normal Fed funds rate and our yields, our yields will be at least normal Fed funds rate. And that's not -- that's very conservative, but just hear me out. The implication is that we left -- in that example, that we left $50 million of revenue at 90% margin on the table as a result of cyclicality. The true number is larger than that for sure, right? And so when I look at that -- and then you translate that in the EBITDA margin, right? We generate about $750 million in revenue, round numbers, right? So that's 600, 700 basis points of EBITDA. So this is a company that -- a different way to look at it is we've managed to eat 600, 700 points of EBITDA through efficiencies and growth while still maintaining EBITDA margins. And so I kind of look at that as -- it's not that we're great, pat ourselves on the back, don't do anything. But it is that I think if you're going to analyze this company as a long-term holder, right, you definitely want to be trying to understand where we are in the cycle when you look at any individual year's performance, year-over-year performance. And when you do that, what you see is that all of that, whether it's the wage work synergy or just efficiency or underlying account growth, all of that produces a benefit that ultimately shows up in earnings, in terminal value, however you want to think about it.

Great. The next question is, what is HealthEquity's product innovation road map related to HSAs in order to fuel your growth? Where do you see differentiating your core HSA offering?

Thank you for that question. I think there are 2 areas that are really important, and they reflect some of what I talked about here. The first is as our -- as we have and continue to embrace API-first and micro services architecture, right? The -- the biggest implication of that in my mind is the ability to place our product where -- in so many different places. So I could list off 100 possible examples. You're a tax preparer and you'd like for your people to be able -- and -- you're an online tax preparer and you'd like to say to people, listen, it's the end of the year, but if you don't have one of these HSA things, we could set one up right now, run your expenses through it and you'll save $1,000 right? Here's a button to do that. And I'm using that -- I promise you I don't have some deal to announce or anything along those lines, that's not my first priority, as I was answering the question, it was the first thing that came to my head. But there are many, many more examples like that. And to me, that's what all of that area of technology is about. And so BlueFit is a little example of that and how it can be used by our partners to make our product better. And the reason that works for us competitively is when you look at our biggest competitors, United on one end and if -- through Optum, and Fidelity on the other, that's not what they're selling, right? They're both selling -- United's saying you buy a bunch of stuff from us, buy this too. Fidelity's saying, you buy record-keeping from us, buy this too. Or you have an IRA with us, buy this too, right? That's fine, I'm all for that, right? But we have this wide lane where we can really use technology to exploit our partnerships. The second area that I feel like, from a technology perspective and a road map perspective that the product can really improve -- and it's in a way related to the first -- is around giving members more access to what's going on within their insurance claims and how we're receiving those claims and seeing what's paid, what's not paid, what the member might want to look at kind of in real time. And again, this comes back to being able to, in my mind, embed that information in more different places. If you look at why people come to our site, right? And we see, give or take on our HSA product, 20%, 25% of our members every month on our site. The principal reason they're coming to the site is because they're looking to deal with medical bills and they're looking to understand those bills. And so if we can deliver that information to more places, right, and more conveniently, right. And we can reduce friction, deliver more value, help our partners deliver more value and so forth. So those are, I think -- both of those examples are: one is about account opening, the other is about important information. From my perspective, that's where the near-term product road map is going. It's not about the next little wingding whatever. We have those, and they're great, right? But if you look at our competitive advantage, our competitive advantage is partnership. It's the biggest ecosystem in the industry. And it's not just our ecosystem, it's our partners' ecosystem and our clients' ecosystem and our members' ecosystem. So I see spending on kind of exploiting the advantages that API-based infrastructure gives you as being really, really good for exploiting that advantage. Sorry, I kind of went on a rant there.

It is great. Jon, 2 years ago at the JPMorgan Healthcare Conference, you said to us, judge me in a year on the merits of the wage transaction, and then COVID happened. So here we are a year later, how are you feeling about it? How did it impact your selling season this year? How are you thinking about things going forward?

Yes. Thank you for that one, too, because I -- then I said last year, okay, you obviously couldn't do that, but you can do it. But I'm going to make the same promise this year, and here's the parts that work and here's the parts that didn't, right? The part that worked is the core objective of the transaction. Which was not to add another service line, right? We don't do service line accounting, and that's why. The objective was to give us more shots on goal to grow our HSA business, and that's happened. And you can really see it not just in the aggregate numbers. But if you go back to, I want to say, Slide 5 or 6, I can't remember which now, but one or the others. I think it's 56. If you go back to Slide 6, which you can also see is where -- a little bit of where that growth is coming from. It's coming from -- if you look at where our opportunity growth was, our shots on goal growth, right? That was in smack dab middle market, right, all of that brokered and direct-to-employer business that we were not getting pre-WageWorks because the brokers and those clients wanted a total solution that included the CDBs at scale, and there wasn't one. Now there is. And the proof that they want it is you see our competitors moving as fast as they can to be able to do the same thing. And that's fine. That indicates a good strategy. So that's the good part, right? Similarly, cross-sell is clearly working, right? That's good. The part that's not working is we introduced beta into a model that did not -- I mean, it -- that -- I'll say this. When we came to market as a new issuer, we promised growth, profitability, consistent competitive advantage and visibility. And so that beta that in retrospect existed throughout the pandemic and was driven as much by how consumers reacted to regulation as regulation itself or as consumers themselves, right, was -- is -- was unwelcome and remains unwelcome. And so I perceive it as our job, as I was suggesting in the opening comments, right, to do everything we can to squeeze that beta out of the model so that we're able to do what we've always done well, which is kind of underpromise and overdeliver. So that's kind of kind of what I see as the thing that's gone well, and the thing that needs improvement. I guess maybe I'll add one other thing. I mean, one thing that -- and I like to mention, sort of. One thing that's gone very well that's easy to forget now that it's happened is, in fiscal '23, right, on the one hand, we will have the headwind that it will be our final year of interest rate declines. On the other hand, we will have the tailwind of the full realization of the extra $30 million of synergy that we got from wage relative to our initial promise, right? So -- and of that, a way to think about it is we were at [ 60 ] at the end of last year, we're at [ 80 ] now. So a full year basis, smoothing out, that's a $10 million, $15 million tailwind this year. And that's good. That synergy has offset a lot of interest rate decline over this period. And the synergy is permanent, the rate decline is cyclical. So I'm all for that. And that's a credit to our operating teams, to Ted Bloomberg who leads all of that work. And it's a lot of hard work that was delayed for too many years by the prior management of that firm, but we made it happen.

Thanks for that, Jon. Maybe in the last couple of minutes, I was hoping you could share with us what you're most excited about in 2022.

I'm just hoping to leave my house. I mean, I'm wearing pajamas below this outfit here. So ...

I've been wearing a suit in my house every day, which is very strange.

Why do you bother with the pants? I want to be like a supreme -- we're all like -- the joke is we're all Supreme Court justices now. You don't have to wear pants under the robe, right? You can just wear your pajamas. But in all seriousness, I actually think probably the thing that is most exciting about fiscal -- this next year is 2 things. The first is that we are now through the wage integration. Certainly, from an expense perspective, we will stop adding back integration-related expenses outside of real estate that we're sort of still stuck with. But we will stop adding back, and that's not specific to integration. But we'll stop adding back all those expenses because we don't really have them. And another way to say that is from the perspective of our team members, right? Last year, it was all about HSA integration. This year, it's been all about getting CDB integrations done. And there will be some -- just as there was last year from HSA, this year from CDB, there will be some -- there is some client breakage there, and that's okay, right? It happens. But that work is tough, and it will be, I think, really good for our team to see that the benefits of that are that you don't have people in effectively dead-end jobs because they're on a platform that's dying, right? Everyone's -- it just -- that's the way I look at it as that being really good for the development of our talent, for the development of our culture and so forth. The second thing, and this gets back to a little bit of what we were talking about before with the product discussion, I just really love the competitive position we're in. I mean, it's not that other providers won't be successful. Fidelity is a great competitor, as an example. I'm sure Optum will do their thing, and maybe there'll be others out there. But I just -- I really could not have asked for a better setup for this company. If you had told me the way this market is going to develop is it's going to consolidate around you guys and some folks who -- for whom this is -- The point is it's a tertiary business. That doesn't mean they don't care about it, that's not point. It's that their reason for being in the business is about supporting some other strategy, and we're sitting here alone at scale doing this. I just couldn't have asked for a better outcome. And it's why I -- when we had this pullback after Q3, it's why I bought some shares in the company and why I'll continue personally to kind of -- to see this as a great source of return. And I guess on that point, a probably a good place to end, we watch -- obviously, we watch TSR. The stock has kind of -- during the entire pandemic, it's had its good moments, but it's underperformed. And I think our shareholders here should know, right, and then those who would be shareholders, that's how I'm paid. And for the most part, that's how Tyson's paid, and how our entire executive team is paid, relative TSR. And so, like, this is not lost on us, and we're going to bust our butts to pull it out and produce a really fantastic outcome for you.

That's great. Jon, Tyson, Richard, thank you so much for this great discussion, and thank you so much for participating in the conference. And thank you to everyone in the audience who joined the session today. Hope you have a great day.

Thank you, Annie.

Thank you, Annie.