Hologic, Inc. (HOLX) Earnings Call Transcript & Summary

Okay. I think we can get started here. My name is Jayson Bedford, Medical Device Analyst here at Raymond James. Welcome to the afternoon session, at least on the East Coast, to the Raymond James -- 42nd Annual Raymond James Institutional Investor Conference. Very pleased to have with us today Hologic. Representing Hologic, we've got Mike Watts, VP of Investor Relations and Corporate Communications; and Francis Pruell, Director of Investor Relations. So there'll be no presentation. It will be straight fireside. Just wanted to, before we begin, kind of, at least frame the investment dynamic as we see it at least. You've got a little less than half of your revenue stemming from COVID testing, a little over half currently from non-COVID testing. There's clearly a debate out there on the durability and relative share of the testing market, but pretty much everyone agrees testing will come down over time. We've started to see that in the public data. Like, this is factored into consensus models and sentiment. So I did want to touch on some of these dynamics, but also you've got the rest of your business that has started to see a benefit as COVID restrictions ease. We'll continue to see a benefit as the economy broadly reopens. So I wanted to touch on that as well. And clearly, you've got a bolus of cash coming in. So I perhaps like to end the discussion with some commentary on capital allocation. So which you've certainly added to the conversation this morning with the deal for Diagenode, which I'll butcher pronouncing here, but I'd like to hit on that as well.

So let's just talk about the primary investor concern here, the so-called COVID cliff. And just to frame it up, Mike, walk through if you can, the role Panther plays currently. And how do you envision this role changing over the next kind of 3, 6 and 12 months?

Yes. Sure, Jayson. Thanks for that introduction, and thanks for having us. Sorry that we're not in balmy, warm, Florida, but hopefully next year. So Panther has made a huge impact in the COVID fight really for the world and certainly for Hologic in our financials. And at the highest level what Panther provides is really simple, right? It's very accurate, very fast COVID test results. Give a little more detail on that, the first results roll out of the Panther in about 3, 3.5 hours, which means the customer can get results back to the patient, certainly the next day, or sometimes even the same day. And on the other side of that, it's also our test, our Fusion tests and our Aptima tests are among the most accurate tests on the market. You might have seen the FDA did a comparison study of the analytical sensitivity is a different test and both of ours turned out at the very top of that list. And what that has enabled us to do is secure a broader label. So for example, we are specifically indicated to be used for asymptomatic testing, which not a lot of tests are. We also have a pooling indication as well. So the other piece of that is really the engineering and the automation of the Panther. Panther is really well-positioned today. In the U.S. alone, we've got more than 1,300 Panther placements in -- mainly in hospitals, but also in reference labs and public health labs in all 50 states. And have really been able to increase that installed base, excuse me, pretty dramatically since the pandemic. In most recent years, we've been placing between 200, 250 Panthers per year. Last year, we did more than 500, and we're off to a very good start in our first quarter of fiscal '21 as well with about 150 Panthers placed in Q1. So as we kind of spread out the Panthers, we're getting them, again, closer to the patients to be able to deliver those tests more rapidly. So I think there's a number of different cases in which -- or use cases, if you will, where our tests are being used. I mean, obviously, molecular is always going to be the gold standard for just confirming disease and diagnosing disease. But in addition to that, the asymptomatic indications has led us to be able to do quite a bit of population-based screening in universities, things like that. And there's also other use cases, you think about pre-hospital admissions, right? Someone who goes in for a hip surgery or a knee surgery, generally, that person is going to get screened for COVID. And generally, that's going to be done with a molecular test. In many cases, the system is right there in the hospital because it has higher accuracy. So have made a big impact on the pandemic thus far and think there's going to be a long tail ahead of us of continued testing and even as vaccines roll out, and we continue to get this better under control.

Just on the differentiated label, Mike, not many tests out there, kind of pooling in asymptomatic. In terms of positioning for the future and how testing evolves, does that benefit you? Do you see the testing dynamic in the U.S. migrating to more pooling?

Yes. So maybe a couple of different things in that question, Jayson. I mean one is the asymptomatic, and we don't know exactly what percentage of our tests are done in asymptomatic patients versus symptomatic. But certainly, I think it's fair to say that the vast majority are done in asymptomatic. And as you know, you've seen many studies that suggest that more than half of transmissions occur in asymptomatic people. So it is very key. It is a differentiator. Our view is, you need to use the right test at the right time for the right patient. And that labeling gives customers that flexibility. The pooling question is a little bit different. I mean, this is the ability to combine several units -- several patient samples into one in order to conserve resources and increase your throughput. We do have that indication. I will tell you not a lot of that going on today. Prevalence rates still remain pretty high, around 5% nationwide based on the most recent data. So not a lot of pooling going on today, although I think it will be a very good option particularly for these kind of broad screening programs in the future as prevalence comes down.

Okay. So the testing numbers have come down of late, total but back up over the last few days. Can we assume that you're still selling everything you can make?

Yes. I mean, look, I think every -- as you said, everybody has seen the overall U.S. numbers declining. Now I think 2 weeks ago, I think some of that was due to weather, and it looks like last week, as you alluded to, numbers popped back up a little bit. So I would encourage you not to kind of look sort of day by day. But I think big picture, more people are getting vaccinated. More people have been infected with COVID. There's the ones that we know about and then all the ones we just talked about that we don't know about. So I think the assumption has always been that volumes are going to come down over time. And we -- in our last call, recall, we said we thought our volumes in the back half of the year would be less than in the first half. That's always been kind of our baseline assumption. Having said that, there's still a ton of COVID testing being done in the United States today, right? I think last week, the average volume was about 1.5 million tests a day, if I remember correctly. Just to put that in perspective, somebody realized that we've done more COVID testing in the last month than we do chlamydia, gonorrhea testing in an entire year. And chlamydia, gonorrhea had been the biggest molecular market pre COVID. So there's still a tremendous amount of testing being done. Within that, demand for our products is healthy. And we do feel like we should be a share gainer over time as the market kind of sells based on that differentiated labeling that we talked about before, based on the different indications based on the automation of Panther. You look at some of our other molecular categories, we might have 70-plus percent share in some of these women's health categories that we play in today. There is a reason for that, right? And that is, that we feel like we have a gold standard product, both in terms of the assay as well as the automation. So we feel good that even as the numbers change, that we can be a share gainer. Having said that, I think what this -- what this pandemic has proven over and over again, Jayson, is that predictions are wrong and things can change quickly. But I think throughout it all, we've kind of stayed close to our customers, and we can pivot pretty quickly, just like we did early in the pandemic for different use cases, different sources of demand. And finally, I would just point out that this is a -- it's a pandemic for a reason. It's a global problem, and we've got a significant business now outside the United States. So we can be flexible in that regard as well based on where the needs are. So a lot going on, a lot changing, a lot that we don't know, but we think we're going to continue to be a leader in the field.

Okay. That's helpful. A few things that I'd like to touch on in your answers there. You mentioned the ability to kind of pivot different use cases, et cetera. How nimble can you be in terms of allocating volumes to those geographies where demand maybe higher?

Well, I think we can be pretty nimble. As you know, we have significant manufacturing here in the United States. We also have a smaller manufacturing facility in Manchester, U.K., and then we can also allocate across as the need persists. The other thing I would just say is there's another aspect to this nimbleness, right? And that is the ability to allocate resources across different asset categories, right? So very early on in the pandemic, one of the ways in which we made such a huge difference was, we shifted or reallocated manufacturing capacity from some of our women's health tests where demand was less on to making COVID assays because that was the right thing to do for the world at that time. And as those businesses continue to ramp up, those manufacturing resources are largely fungible. So again, if we stay close to our customers and understand what their needs are, we can pivot pretty quickly, both across geographies but also across asset categories.

Okay. And you mentioned share in other areas. I think you said 70-plus percent share. Clearly, you're not there in COVID testing. But is there a number that you think is your rightful share in a normalized COVID-testing market?

Like I said a lot of things, Jayson, are hard to predict, I think, in this pandemic. I would just -- I don't have a number for you. I would say that we feel like we can go a lot higher from where we are today based on the public data. Certainly, would not expect us to get out to those kinds of levels that you mentioned. But I think our rightful position is to be one of the top players in the market, if not the top player among sort of the midsized and the larger customers. So I think I'd probably put it that way as opposed to trying to predict a specific number.

Okay. And just the thought of you can go a lot higher than where you are today. Is that just based on the differentiated label based on your capacity? And I assume that it's still a bit of a wild west out there. As the market normalizes, a lot of these smaller, less resourced companies will kind of shed market share?

Yes. I think if you -- I mean, what are the numbers now? I mean how many new As have been granted by FDA? Hundreds, right? I think 200, 300. And we've made it all, right? And that's been terrific. But I think what we hear customers tell us all the time is earlier in the pandemic when supply was more constrained, we were allocating a certain amount of tests to each customer. They'd run through those tests first. And then they move on to the next system, and then run out those tests, and then we move to the third one after that. And I think as we and all others have ramped up capacity, what customers are able to do is focus on the best-in-class products or the products that they like the best. And certainly, for the reasons we talked about, Panther has those automation advances. So I think most customers would prefer to use a fully automated system that requires minimal hands-on time, that has high throughput, that has high sensitivity rather than using a manual system or a semi-automated system where you've got to transfer from one station to the next or manually pipette or those kind of things. So on the ground level, I think the cream will rise to the crop, and that's going to have a lot to do with the automation.

Okay. And just lastly, I guess, on COVID testing. Obviously, the numbers are volatile here. Do you have contractual agreements in place that kind of buffer some of the daily ebbs and flows of COVID testing?

Yes. We do, of course, I mean, the vast majority of our molecular business is under contract. Certainly, we've talked about the fact that OUS, we've signed some very large contracts with national and provincial governments to kind of help buttress that. I will tell you, though, Jayson, that ultimately, what matters, at least as much as the contract is customer satisfaction, right? And what tends to happen with Panther is and what's happened over the last 10 years the product has been on the market, is once a customer gets a Panther, they like it. Their volumes of the first assay increase, and then they bring on a second assay, a third assay, a fourth assay and so on. And because they realize that they can provide better medical care to their customers, and they realize they can use the system as something to make money, right, for their own labs. So the -- that could be, in this case, COVID assays, it could be other tests as well as they get more capacity on those systems. So I think that's probably -- that customer satisfaction and that performance that we see every day in the field is probably even more important than the contract in terms of driving future demand.

Okay. Okay. So let's pivot a little bit. I'm sure you're exhausted of talking about COVID testing. So let's move to...

No, not at all. We're -- I think we, thank goodness for molecular testing in general for COVID. I think it's helped get this thing under control. We've made a big part of that. We feel really proud about that, and it's going to continue for a while. So not a big deal at all, happy to talk about it.

Okay. Regardless, we'll move over to the rest of the business. So did a deal this morning, Diagenode seems to make a lot of sense, but I want to hear in your words what you think it does for Hologic.

Yes. So I had to note, you got it right at that time. I think maybe you pronounced it a little bit differently the first time, but you're improving. So thanks for that. Yes, we're really excited about this deal. I mean, capital deployment in general, obviously, as you alluded to in your intro, is going to be really important to us, and we can talk about kind of the general parameters of that as we go on. But Diagenode, super excited about, about $160 million deal. They're a Belgian based molecular diagnostics and epigenetics company. I mean, obviously, we are very focused on the first part of that. What's neat about Diagenode is we've had a partnership with them, I think, all the way back since 2016, where they've actually developed a couple of our tests for the Panther Fusion. Now Panther Fusion, I know you know, Jayson, is the add-on to Panther that runs PCR in addition to our core TMA. So they developed for us our group B strep assay, or Bordetella assay. So we know them well. We partnered together. And what they have really built over time is they're an assay factory, right? And they've got a huge menu, 30 or so different tests that are in areas that complement our menu on fusion today and on Panther today. So they, for example, are big in transplant viral test, in HAIs, in syndromic panels in addition to doing things like in women's health, like herpes and other things. So a very broad menu. And the driver here is really the opportunity to port that menu over on to Panther Fusion to accelerate the growth there. And obviously, our molecular business has had a great run, has had a tremendous amount of momentum, particularly outside the United States. But this, we believe, really further strengthens us. And I think it diversifies us in terms of our menu, for sure, in complementary ways. It diversifies us further in geography and the majority of their revenues in Europe. And it also diversifies us in terms of customer segment. So many of their tests are used in more of an acute care setting. I would also say that they also have a box of their own, a lower volume box, not really -- not a true point-of-care rapid turnaround box, but a lower volume box that many of their tests run on that could slot in potentially a below Panther for smaller customers, so they have that benefit, too. And then finally, excited to be expanding in Belgium. We have a European training center just outside of Brussels. This is about an hour down the road. They have both R&D as well as manufacturing capabilities at their headquarters in [indiscernible]. And I think that's going to help us speed to market, particularly in Europe. So a lot to be excited about, kind of a very classic tuck-in, if you will, that right in our core that leverages those automation strengths, leverages the broad installed base -- the broad and growing installed base of Panthers that we have, particularly in Europe. Maybe just pause there and happy to dig in any of that more.

Yes, a few questions. Of the $30 million in revenue that they generated, how much of that was from Hologic? I better believe it's pretty small.

It's small.

Okay. And the revenue that they're generating right now is on other boxes? Or how is this revenue -- where is this revenue being generated right now?

Yes. So their tests can be run on the most commonly used extraction systems, the typical kind of off-the-shelf, semi-automated thermal cyclers that are out there. So they basically provide the tests that can be used on those boxes. The value, of course, going forward, will be to put those on our proprietary box with all the automation of Fusion.

Okay. And of the -- I think the press release, 30 real-time PCRs test approved in Europe, where do they stand in the U.S.?

Yes. So they don't -- they haven't really come to the U.S. market with the exception of the group B strep test that I mentioned earlier, which is our test. So they have been primarily focused on Europe. And that will be our focus initially as well. The U.S. market can come later, but in the near term, really focus on the OUS opportunity.

Okay. Okay. So focus here, you're adding $30 million in, I assume, pretty high-growth European revenue.

Yes. We think -- no, they happen to have a genomics business as well, which will get to understand that better as we go along. We think there might be some potential applications down the road in oncology. It might even fit in some ways with the Biotheranostics acquisition, but we'll have to establish that over time. But in total, we think that just the molecular growth can drive this to a certainly a teens-type grower, and if not better, over the next several years. That's one of the things, as you know, Jayson, that's really important in all of our acquisitions is, is finding assets that are accretive to our core growth rates, not just the onetime step up, not just the $30-something million in this case, but rather the ongoing growth rate, and we certainly think that Diagenode will fit the bill in that respect.

Okay. And just, Mike, remind us how many Panther Fusions are out there right now? You gave us a Panther number. I'm just wondering how many kind of added the fusion component?

Yes. I mean, it's probably -- I don't know the exact number at the top of my head, Jayson. It's probably at 2,400 Panthers it's probably 15-ish-percent -- 15% of them have Fusions attached. Something like that.

And just lastly, on the deal, I assume the gross margin profile on this is similar to your molecular business.

At the moment, it's not. At the moment, it's lower because they're doing some of this contract revenue, et cetera. So I think the value creation is going to be, again, shifting to that proprietary content. So some good room for -- over the next several years, start to approach our own margins, but we've got some upside there.

Okay. Okay. Good deal. In terms of just sticking with the assays and menu expansion, you've got, what? 18 assays cleared on Panther. It seems like use of the entire menu isn't quite there yet. So I guess the question is, do you expect with -- how well you've done with COVID testing, do you expect broader use of the assay menu on Panther?

Absolutely. Absolutely. We just had a little echo there. Hopefully, it goes away. Yes. So we -- you're right. So including COVID in the U.S., 18 different tests approved. Many of our customers only run a few assays in part because many of those additional tests were approved over the last few years. So the good news is, we've had -- we've got a good runway for future adoption even as we place more Panthers as a result of COVID. And I think the way that we track that and the way that we incentivize our sales force is through something called TORs, which we've talked about or test of record. And what a TOR is, is basically the year 1 value of a new assay contract whenever that customer signs up to bring on a new assay. So before last year, the most new business, the most new TORs that we had ever signed up in a year was probably in the low $20 million range. Last year, even at -- and this is all non COVID, by the way. Even as COVID was rolling out, last year, I think the number was about $35 million in TORs for last year. So $35 million in new year-1 contracted revenue. So about a 50% increase over anything we've ever done before. Pretty happy about that. And then in Q1 that we just reported our December quarter, we actually booked another $20 million in TORs just in that first quarter. So continue to proceed at a really nice pace. And you're beginning to see that in the molecular results, right? So if you -- I think in our last call, we talked about the fact that if you back out all the COVID test revenue, if you back out all the instruments, you back out all the ancillaries, core molecular still grew about 10%, well above the market last quarter. And that's a function of these new TORs, these new tests rolling out on the system. So excited about the runway that we have, even before adding in the Diagenode stuff. Excited about the runway we have even with our existing menu.

Just on the growth, Mike, clearly, that 10% was still way down to some extent by COVID, meaning COVID, elective procedure, et cetera, pressure. You were growing molecular in the double digits pre COVID. Is there any reason to think that this business can't grow double digits ex COVID for many years going forward?

Well, that certainly growth overall. We've not given formal long-term guidance, as you know. But certainly, we believe that our molecular business will be stronger and faster-growing ex-COVID once the pandemic is over. I mean, if you think about it, I mean, if we would have invented some event, right, a few years ago, that would enabled us to probably place 500 additional Panthers over the next 2 years, I mean, we would have been thrilled with that. So absolutely, the molecular business should be stronger, should be faster growing. And even adding to that further, with acquisitions like Diagenode to further -- to take that 18 tests even much higher.

Okay. I'm going to assume you didn't create this event here over the last year or so.

No. We're happy to make a difference, but definitely didn't create it.

In terms of Hologic, you've always been a little under-indexed relative to some of your peers internationally. Has COVID testing pulled through incremental international business?

Yes. Yes. I think there's a couple of different pieces to that. One is the one we've just talked about, which is the ability to run other molecular assays on that growing installed base of Panther instruments. That one is pretty clear. But I think it's also helped us in terms of our relationships with payers, with national governments with provincial governments. As we've talked about, we're clearly having conversations now at a level that we haven't been able to have in the past because we're making a huge difference in various countries, COVID-testing efforts. And that provides access to the right people, the right decision-makers including for Breast Health, it influences guidelines, those kinds of things. So as I mentioned, the international business was growing kind of low double-digit rate in pre COVID, but that's a clear way in which we think an area in which we're going to be stronger after the pandemic.

Okay. Okay. Switching gears a little bit away from diagnostics. GYN Surgical. You recently bought Acessa? Can you just frame the market size/opportunity for Hologic here? And will it cannibalize MyoSure at all?

Yes. So sure. So let me just level set everybody if you're not familiar, for those who aren't familiar with the product. So Acessa markets laparoscopic fibroid removal product called ProVu. And ProVu has indicated mainly to remove fibroids that are types 2 through 6. So these would be more complicated fibroids, ones that are embedded in the uterine wall, for example, larger fibroids, et cetera, whereas MyoSure is typically used for type 0 to 2 fibroids. So there's really very little overlap at all between the 2 products. The neat thing about this is that the dock is the same dock that we call on. So the GYN surgeon who we call on today for MyoSure is the same physician who's doing the ProVu procedure. So it's a perfect kind of tuck in, again, to leverage an existing channel and drop it into the sales force -- into that sales force's bag. So complements MyoSure really nicely. I think there's something like 350,000 or something like that, surgical fibroid removal procedures done a year in the U.S. ProVu can be used for a little less than half of those. So it's a big market. And I think over time, I don't know that this is necessarily going to be another MyoSure or another NovaSure, but we do think it can be a very meaningful product, $100 million kind of product over the next several years. So one of the things we've been doing in general in Surgical is diversifying that business, both from internal R&D, fleshing out, for example, our fluid management products. A new scope is used with MyoSure, et cetera, but also diversifying it with acquired assets like ProVu. So think it could be a really important third product for us over a number of years.

Okay. Just in terms of GYN Surgical, you had good growth in fiscal 1Q off a tough comp. What's the steady-state growth profile in GYN Surgical?

Yes. So this was probably our fastest-growing -- well, not probably, was our fastest-growing division pre COVID, certainly into the high single, in some cases, into the low double digits. A lot of credit here goes to our commercial teams -- excuse me, we really revamped and strengthened our sales force over the last several years under Sean Daugherty and Essex Mitchell's leadership. Really moved them over to a full commission type compensation. So they're hungry for business. They're hungry for share. They're hungry to sell, and I think that's made a huge difference in addition to adding some of those products that I mentioned. So the fluid management system, the new hysteroscope, et cetera. So there is a little bit of seasonality in this business. The December quarter that we reported is typically our strongest of the year. I think there might have been a little bit of pent-up demand even as folks were kind of getting out again and getting back to procedures post COVID. And this quarter, the March quarter, is usually sequentially lower. And in addition, we had guided to the potential impact of some of the rolling shutdowns that were taking place early in the quarter around different parts of the country. But the fundamentals here are really healthy. Adding products is going to help, Acessa is going to help. And we would be hopeful this would return to the same kind of growth rates that we had pre COVID. So not quite there yet, but hopefully, over time, into the high singles, maybe even low double-digit kind of range.

Okay. Okay. That's helpful. Breast -- Breast Health. The conventional thinking here is that this is a bit of a slow growth segment. But I was looking at the model here, but in the last 5 years before COVID, the segment actually had been growing 5%, 6% organically, which honestly surprised me a little bit. So I'd like you just to talk to how you've been able to drive this growth and are these drivers still intact going forward?

Yes. So this is a business that has changed tremendously over the last 5 to 7 years, certainly since Steve came on board, and then Pete Valenti, our former Head of Breast Health, who recently retired. And the whole strategy here, which has really paid off, is diversifying away from just capital to really encompass the entire clinical continuum of care for breast cancer. Now how have we done that? A number of different ways. We've built out the international business, which has been growing at a faster rate. We've actually acquired some of our international breast distributors so that we have closer contact with the customer. But we're also gaining access to that service revenue, OUS, which we didn't always have when the distributors took it. So that's one piece, is growing international. Secondly, we've built out our service business. Service, if it were a product is actually our biggest product other than COVID, it's actually bigger than the capital business and put new leadership in there that's really driving that. So that service revenue even as capital really declined in the midst of COVID provided us quite a bit of cushion or ballast, if you will, in that business. Then on top of that, some acquisitions, right? Focal and Faxitron moved us into breast conserving surgery. SOMATEX gives us access to some markers and some European sales. SSI moved us into the ultrasound space. So a number of different acquisitions. And finally, the only thing I would add to that is the new product pipeline has gotten a lot more productive. Last quarter, our interventional business did very well. That was a function of Brevera being relaunched and strong early demand there. But also cranking out now more software upgrades, more hardware upgrades, more AI tools, et cetera. You put all that together, and it's been a much more diversified, much steadier business. I think last year, for example, U.S. breast -- this was depressed a little bit because of COVID, but U.S. breast, the U.S. gantries were only about 17% of total divisional sales. Compare that to much larger numbers in the past, even smaller than our service revenue, as I mentioned. So a lot of different growth drivers now the team is put in place.

So is there any reason why breast can't grow 5% going forward?

Yes. Again, we haven't given long-term guidance. I mean I think the things to keep in mind with breast is that even though the core capital has gotten to be a smaller percentage of the business, Jayson, that in and of itself is not a tremendous growth market. We're getting more and more penetrated with 3D, et cetera. The number of overall gantries out there is probably likely to even decline slightly over time. We'll gain share in that process, but that's probably not a growth market and service tends to be a slight -- which is the biggest chunk, as I mentioned, tends to be slightly less rapidly growing than that. So that might drag it down a little bit, although it'd be a nice constant annuity with good cash flow and good profits. So it might be a little bit less than that, but certainly I think we can -- certainly, that's the goal to have that more consistently in the mid single-digit range.

Okay. And just -- I guess what I was trying to bridge to here is your view of a normalized growth profile for this business, ex COVID. Is there a way you can comment on your internal view of how fast this business should be able to grow the top line?

For Breast specific?

Sorry, for everything ex COVID?

Yes. Sure, sure. Thanks for clarifying. Yes. Look, I think we have said all along that we are trying to do 2 things with COVID. One is make a huge difference in the world in the COVID fight. We're clearly doing that. And secondly, make ourselves stronger for the long term, both by increasing funding for R&D projects, commercial projects in the other businesses, and also by using those cash flows to acquire things. So our goal would be to, ex COVID, be a faster growing, more profitable company on the other side of this pandemic. And I think that's something that's very achievable. We were growing -- growth had been -- excuse me, growth had been accelerating pre COVID, up to about 5% or so in the first part of this year, and we think we can build on that, hopefully, going forward.

Okay. Mike, Francis, this has been great. I think we're bumping it up on the top of the hour here in our allotted time. So thank you so much. I appreciate what you're doing for society with the testing as well as congrats on the progress in the business. So thank you.

Thanks for having us, Jayson. It's good timing because I think my voice is going at about the same time. So appreciate your having us, and we look forward to seeing you in person soon.

Sounds good. Thanks, guys.