Infomedia Ltd (BGLOBAL.BO) Earnings Call Transcript & Summary

All righty. Hello, everyone, and thank you for joining the Infomedia Americas update. We will begin with a presentation by the Infomedia management team followed by Q&A. For those joining online during the Q&A session, please select the Q&A button to submit text questions which can be found at the bottom of your Zoom screen. Now I will hand across to the Infomedia CEO, Jens Monsees. Jens, over to you.

Thank you, Kiara and welcome everybody. You sound a little bit like an avatar, Kiara, but I just want to say that she's real, also here in the room. Yes, it's an exciting time. We thought it's good before we go into blackout to give you a little bit of an update. We have lots of questions on the Americas, lots of interest. We try to summarize all these questions and address them in Oki's presentation. There are around 100 people in the room and then also outside the room on hybrid. So I think it's a very good uptake. Lots of interest, Oki. And just to introduce Oki a little bit. He has a little bit of an arm wrestling as you can see. So we pushed down another price increase and that is sometimes very hard exercise. But in fact Oki is now the appointed leader for the Americas for over 10 months and obviously he was already in the SimplePart business before, one of the co-founders. And when I joined, Oki and me we sat together and said well we need to bring these both companies together located at that time in Detroit as well as in Atlanta where Oki is located and living. Now it's a very special day today because we have exactly today 3 years anniversary where we acquired SimplePart and made them part of the Infomedia group. So I think it's good to be here on a special day. And I'm very pleased of what Oki has done so far, not only for the last 10 months where he had the official leadership of the Americas, but also before we already worked close together. And I thought it's a good opportunity to hear from you and hear from the team directly what has been achieved and where we are currently in our turnaround. So, it's a very hot seat, I can tell you. These guys are having lots of questions all the time. But I think to be fair, it's also good to let Oki first present and then we have lots of time for questions after. And we will have in the hybrid session the possibility to have direct questions in the room as well as questions from the audience virtually which are typed in the text. And with no further remarks or questions, Oki, over to you. Yes.

Thanks, Jens. Really appreciate the time. Thank you so much for allowing me to present this information to you all. It's really amazing to see how much interest there is in the Americas and what we've been doing over there. And so like Jens said, we'll wait to the end with any questions, so make sure, but really also appreciate the time that everybody took in sending some questions and providing us some feedback over beforehand. And we've really tried to incorporate that into the presentation, so hopefully we've addressed a lot of those questions in the presentation as well. Presentation agenda will include an America's market overview, market and consumer trends and how they relate to the Americas. We'll touch a little bit on the financial progress that we've made in the Americas, business overview, acceleration initiatives we have going on in the region, as well as some of the strategic priorities, next steps that we have going on. So to give a quick overview on the Americas market, first and foremost, we consider the Americas market to include the United States, Canada, Mexico and Central and South America, basically covering the entire western hemisphere. Currently in the United States, we have 16,800 franchised automotive dealerships. And as we know, Americans love to drive their cars. So we actually drive our cars more than citizens in any other country in the world. The National Automobile Dealers Association last year said that these -- just these 16,800 franchise dealerships alone wrote $142 billion in service, repair orders and parts, over 264 million repair orders themselves. So based off these facts below, you really see where the Americas represents the largest revenue region for Infomedia right now. But it's also that there's a lot of opportunity that we haven't touched yet in this region. One of the key differences that I want to call out about the U.S. market in particular is the difference in the way that OEMs operate and how strong the franchise dealership model is in the United States. And so we actually have kind of a 2-pronged sales approach that we have to go through in the United States. Vendor solutions typically are not mandated down by the OEMs to their dealerships. You're only endorsed or getting approval for those things to be able to then go sell door to door to those individual dealers as well. So it kind of creates this 2-pronged sales approach where we have to go and land the OEM, get the endorsement, get the DLAs, get all that in place with them, and only then and after then you typically have that opportunity to then go door to door to the dealers and sell your solutions in. It's not in every case, but it tends to be the majority of the time this is the type of setup that occurs. I'd also sit there and say that the United States is a very saturated market when it comes to automotive solutions and the vendors that are out there. Probably some of the most robust and advanced solution offerings globally, just because of the power of how many dealerships there are, the market size, it really is a pretty crowded space with a lot of different vendors who have been in the game for a really long time and have established themselves. And I think this is really prevalent when we talk about dealer management systems, right, the ERP systems that these dealers use at the central kind of hub of how they operate their dealerships. And so in the United States, historically, there really have been 3 key DMS players that have basically taken the lion's majority share of market, CDK, Reynolds and Reynolds and Dealertrack. Recently, we've seen Tekion come on and really challenging the incumbents in their legacy systems and business models and gaining market share against those. In these DMS systems the contracts these guys sign are typically 5-year deals. And so there's kind of a cycle going on where every month that 5-year time cycle is starting to come up, you're starting to get that opportunity where these DMS systems have that opportunity to go to flip that dealer over to the system. So Tekion right now has about 1,000 dealers that are currently using their DMS system, but they're bringing on about 50 new dealers every single month as well. One of the great things is that we've been working obviously really hard to integrate in with DMS systems, and we also count Tekion as a partner to actually use our data and it's integrated into and leveraging it within their solution as well. Outside of the United States, to touch real quickly on some of the other markets in our region, Canada has about 37 automotive franchise dealerships, and then with Mexico, Central and South America really rounding out in terms of the order of magnitude and opportunity. But what we do see in the Americas is that Mexico, Central and South America are underserved markets, and especially when it comes to these dealer solutions and the vendor providers. And so we see this as an opportunity for us to be stepping into. And I'll talk about a little of the successes that we've seen there more recently. So I wanted to touch real quick, and you guys might have seen this slide before in some of the other presentations that we've done in Infomedia and talk about the market and consumer trends and also a little bit of how these relate to the Americas and how they differ from the Americas and some of the other different trends that we see in the Americas going on as well. So covering some of the global trends, we talked a lot in the past about how electric vehicle adoption is continuing to grow globally, how the connected car is generating a growing volume of data, the push toward the dealer agency model, how data driven marketing and customer experience is flourishing, and how the fragmented market is creating a push toward more vendor integration and consolidation. But how does this actually impact the Americas? And I want to start off and kind of touch base on the electrical vehicle side first and foremost. It's interesting where electric vehicle adoption has really been rapidly growing globally and worldwide. But one of the things that we're actually starting to see in the United States is a slowdown in that growth rate. We've actually started to see an uptick more in hybrid growth more recently. And analysts are starting to now say whether or not we're going to end up seeing a flat 7% growth foreseeable future in terms of the electric vehicle market within the United States. And this evolved, meanwhile electric vehicle prices have been continuing to be lower down, we're still kind of seeing this trend going on. One of the other interesting things, though, is that in Mexico we see a little bit of a different thing going on. There has actually been a really big push from Chinese brands going into the Mexican market and there has been a really rapid advancement in adoption of these EVs. So in Mexico right now, we currently have 11 Chinese brands that are operational, with 4 more that are coming online very quickly. And those numbers are continuing to rapidly rise at an increasing rate. So I think that right now, there's something like 100 Chinese automotive brands coming out right now are in China. And so I think that we're going to start to see those numbers continue to rise as time goes on as well. In Mexico, Chinese car sales have been skyrocketing. So in 2022, we saw 6.5% of the sales going to EVs, and that has now increased -- to Chinese brands, and that has now increased to an impressive 9.4% of total sales in 2023. Four years ago, only 4 Chinese brands existed in Mexico and only represented about 2.6% of the overall cars that were sold in Mexico. So China's entry into the Mexico market is really providing us with some additional opportunities for us to start expanding on taking advantage of, and we're hoping to look to build on the success the APAC market has had here in working with these Chinese brands and hoping that we can parlay that into some new opportunities as we move forward as well. One of the things that does come up with electric vehicles as well is kind of the question of, well, electric vehicles have less parts than internal combustion engines, they might have to be serviceless, how does that impact Infomedia's business. And one of the things I would say is that I actually see EVs and hybrids as opportunity and a growth opportunity for Infomedia as we move forward as well, because in our catalog sets, we're required to then add these additional vehicles into our catalogs. We have to go create service menus for these additional vehicles as well. And so it continues to add to the breadth of our catalog that we create and maintain. One of the other factors that's really interesting in the United States is that the vehicle age is actually increasing significantly. So currently, right now, the average age of a vehicle on the road in the United States is 12.6 years. And so through this, there's another opportunity for Infomedia to be able to -- because we operate in the after sales sector, there's a lot of opportunities for us as this aging vehicle car part continues to age, opportunities for us, the need for additional parts, the need for additional service. And we're also continuing to see the cost of these cars continuing to rise, therefore pushing more people to hold onto their cars for longer and requiring more services parts as they move forward as well. In relation to the dealer agency model trend globally, we're actually not seeing as much of a progression there in the United States. Strength of the franchise dealerships that I was talking about before really has seen kind of a delay in that dealer agency model compared to what has been happening more globally. Yes, you have some brands like Tesla that are coming in with a more dealer [ provider ] model, but I think that we're going to end up seeing a continued independent franchise dealership operation that's happening in the United States, and it will probably be one of those countries that persists for the longest globally. What we are seeing within these dealerships, though, is dealer consolidation. If you all kind of look at these automotive groups, these automotive groups continue to rise, and they're getting to this point whereby some of the automotive groups that exist are even larger than the OEMs themselves. And so it creates a really interesting kind of dichotomy between OEMs, automotive groups, the franchise dealers, and those independent franchise dealers. There's a very, very differing needs from those different groups. And so you think about with vendor solutions, an OEM is typically trying to endorse certain providers, create consistency across their brand of the solutions and tools that their dealerships are using. But now you end up getting these automotive groups and they're multi branded. So they're looking for solutions, not that the individual OEMs are mandating. They're looking for commonalities so that they can run their businesses more holistically. And so they're looking for commonality for each of their dealerships to use a specific vendor. So a very, very different and competing factor that's going on. And so the United States just works as a very different model, I think, than in most other countries. And how that kind of relationship, and it puts that strain in competing priorities into more of a focus. The other thing that we're also seeing with these dealerships is a lot of cross market dealership interest in purchasing. Recently there was an acquisition by Lithia of acquiring Pendragon in the UK. We've also seen recently, for instance, Dalton Corp from Mexico purchase dealerships in the United States. There was just recently, just this last week, Canada dealership group, Steve Marshall Group that bought us dealerships in Hawaii. And so as we're starting to see this across the market purchasing happening and consolidation, I think that we're really, really well poised as a global organization within Infomedia and our vendor solutions being globally to be able to take advantage of that dealer consolidation that's happening and these dealer groups looking for common vendors across their dealerships as well. So it puts us in a really, really good position as we move forward. I want to touch base real quick on some of the financial progress that we're also seeing in the Americas. So on this slide, we kind of show the progress since 2019. And what you can see there is that from 2019 to 2021, some pretty average performance by Infomedia of Americas. You'll see the large step up in June of 2021, obviously the acquisition of SimplePart 3 years the date today. And then following that acquisition, you'll start to see revenues rising within the region, while at the same time at the start, our costs grow for a period as we were operating in parallel, keeping SimplePart independently running from Infomedia for that first period of time. But then as we started to get closer to a possible resolution on the [indiscernible], we actually started to bring the organizations together in the Americas and started to see those synergies and stepping toward operating as one organization, and our costs started to fall as a part of that. So we've currently started to create significant operating efficiencies and are continuing to grow our revenues in the meantime and really providing some strong operating leverage.

There is a peak there, Oki, also that was...

That's right. And so one of the things that you'll note kind of around just before June 2023, that little peak there. That was where SimplePart ended up losing the Toyota renewal. Toyota decided to bring their e commerce solution in house. It's been a little bit of a difficult struggle, I think, for them in understanding all the complexities with this, the catalog data and information. It's not just about a catalog for your individual service advisors get the dealership. How do you go turn that technical catalog data into something that's consumer friendly so that consumers that are searching for these parts on the day to day know what they're looking for, things like we call in the catalog, a lot of times you'll see things like an air element. Nobody goes searching for an air element. You're looking for an air filter for your car. And so a lot of the processes that we have on the SimplePart side go through that catalog, clean that information up to be able to be more consumer-friendly catalog for consumers. Now one of the things that we've seen through that we were able to retain Lexus, even though Toyota ended up moving and bringing it in-house and Lexus has seen significant growth in our platform year-over-year while we continue to hear that Toyota has been kind of working their way through some of the struggles of bringing that solution in house as well. To touch real quickly on kind of from a business overview perspective in the Americas, we've really been successful in growing our portfolio in the region. We now have over 25 OEM customers, thousands of rooftops at an individual dealership level and we now have over 100 employees located in the region. Some of our major revenue drivers in the past have been around more on the parts side, right, are really starting in core within Infomedia around that parts, data and information. And so Microcat and SimplePart really are kind of the key components and the key revenue drivers in the region historically. But we're starting to build upon that strong core and bringing in some of our additional products into the market and making pushes there with our existing customer relationships. So one of the great things that we're now able to do is put these existing relationships that SimplePart, the product had before or that Infomedia had, we're now getting into more cross-selling of our solutions into those relationships as well and finding that a lot of the times, we already have those contacts as we're already working with them on one of the pieces of our product portfolio. Within Superservice we're now focused on a lot of our partner relationships as well as continuing to work on our DMS integration and providing that, expanding it into their dealer network. Meanwhile, Infodrive is really providing a new area of opportunity for us. We've had some recent wins within Infodrive product around data partnerships. And we're also getting some good feedback within the Mexico market. Currently working with Mitsubishi Mexico and Kia Mexico around our Infodrive product as well, and looking to expand that as we move forward. One of the things that I said before is, and one of those trends that you saw from that previous slide is around how these OEMs, NSCs and the dealers are hungry for data. They're wanting to understand what are the insights, what information can we pull out of the systems. And so Infodrive really is set up well for us to be able to go and provide those insights to the OEMs, NSCs and the dealers as we move forward as well. So it will definitely be a strong growth driver as we move into the future. So talking a little bit more about the business acceleration initiatives that we now have going on in the region. I'm really energized by the progress that we have made on achieving continued top line revenue growth. We've really been growing our sales pipeline with all 3 of our sales channels around OEMs, the partners that we work with and at the individual dealer level. And we're starting to make massive pushes into Mexico and Canada as well on to the Central and South America region. In Mexico, we now have a full-time resource, the first time, a full-time employee located in Mexico itself. And we put that there obviously to support the growth that we have and are going to continue to see and capitalizing on opportunities that come about there as well. We've also accomplished 17 DMS integrations in the Mexico market and so it's been a huge accomplishment. Great kudos to the product teams in making that happen in a timely manner. It's really helped us to be able to support Kia and Mitsubishi Mexico. We'll continue to garner more interest in the region in Mexico from additional brands as we see what we're being able to do with those brands. In Mexico more specifically, I kind of talk about Infodrive being one of the big opportunities that we see there. We're also starting to talk to a lot of these OEMs about SimplePart as an opportunity and getting interest from the e-commerce perspective as well. Within Canada, we have actually launched 2 programs here recently in the past few months, with Hyundai Canada, launching on a SimplePart product, as well as Ford Canada launching a program on SimplePart product as well. And we've also had some success and interest on our Infodrive and our Microcat PartsBridge solution there, too. In terms of Central and South America, we've been a little bit light there historically, but we have made a little bit of an inroad. And again, one of the things that we've seen from the past with my time at SimplePart is it's such a new thing bringing this solution into these dealerships and these OEMs. E-commerce is still a little bit new. They're still trying to figure it out. Sometimes they dabbled in eBay or in Amazon. They didn't have great experiences. And so we're excited to say that we've actually launched a program with Nissan Peru and starting to see some success there and proving out that there is a market for e-commerce solution. People are actually looking to go buy their parts online and that launched in November of 2023. So in terms of the other focuses that we have going on in the region, we've really been trying to continue to drive that top line growth. And so there's a couple of key areas that we've been focusing on there. We implemented a joint go-to-market plan and really refining our processes from a sales perspective. Previously, there was a lot of focus on selling individual point solutions into our dealerships or into the OEMs. We've now kind of gone through a process where getting everybody across all of our products, and we're now at a point whereby we can actually sell, cross-sell our products into these dealerships and OEMs. It's taken a lot of work, obviously, to get there over this past year, getting everybody spun off on the different product suites and all of their functionality. But we are at a point now where that is starting to happen. We're starting to get some successes there as we start to implement that and continue to push that through. We're also tracking a lot more of our opportunities through sales force, implementing -- becoming a much more data-driven organization. And so through that, we can also see that the data is telling us that the work that we've been doing in getting that cross-selling going, we're starting to see those opportunities as well as those close rates increase more and more frequently as we go from month to month. In addition, we've been really focused on customer success and really revamping our processes there. We put in some very robust account management plans. And so rather than waiting, finding out what is going to happen with our accounts, going to them on a quarterly basis with our quarterly business leading process, talking through where their opportunities are, where their accounts stand, and then also talking to them about what the other products in our portfolio that can help them solve the problems that they're facing as well. So we've also then been focusing heavily on expanding from our OEMs to bring in that customer success down to an individual dealer account level as well. Now, obviously, we have thousands of dealerships that we work with. And so we're continuing to pull that process in, but much more of an end-to-end account management planning and review process than we had before. The DMS integrations are also giving us a lot of momentum for our Superservice product as we move forward. A lot of growth and advancement in our partners discussions around those DMS integrations as well. And that's one of those places where we've had a lot of success with Superservice is working with our partners who are able to go put the Triage product in for Superservice and provide an [ admin ] solution to some of their customers. Our Triage product really has been highlighted as kind of a best-of-class tool and we're going to continue to move forward on our Superservice product and rounding out our solution suite to create a more robust offering as well. One of the other places that I would end up mentioning real quick is that we've found some success in the specialty dealer segment. In the region, we're starting to explore more of those opportunities. Historically, we haven't done a whole lot of market research within that area, but we have been servicing opportunities historically. Toyota Material Handling is a client of ours in the Americas who we've had a lot of success with over the years. We're starting to explore additional opportunities with them, but also looking to more of those specialty dealerships and those OEM brands with our product offering. And it's not core to automotive, obviously, but what it really does is keep us within our lane of staying true to our core competencies around complex vehicle hierarchy and product-driven applications, where our cataloging, our service menus and offering really shine. I've also really been focused on operational excellence and driving that as a cornerstone within the region. We've transformed this region from what used to exist of, kind of a 30-person go-to-market regional office. And we now, as I mentioned, have over 100 resources and people located in the Americas. And we're really across all the organizational functions with development resources, which wouldn't have historically been placed outside of the APAC region in the past. And so it's a very kind of different dynamic that's going on there in the region as well. Back last fall, we actually kicked off a One Team initiative. We brought together all the resources in the region to bring everybody together with really a goal of setting up half and plan toward integration. And we've had some really, really great successes. I kind of mentioned how those account teams are coming together really with this goal and idea. We want everyone selling everything. We want everything -- everybody supporting everything. So historically, you had the Detroit office servicing certain products and the Atlanta office servicing the SimplePart product. We're starting to bring those teams together and creating, again, That idea of everyone supports and sells everything. We've also been focused on streaming our systems and processes and our operations, really looking at migrating to common platforms and systems currently, again, bringing 2 offices together. Infomedia was using certain products. The SimplePart business was using certain products. Getting into common platforms and systems. And as we've been doing that, also finding cost savings along the way. Our finance and accounting functions are continuing to migrate and move over into corporate as well. And we've also spent a good amount of time looking at our org structure within the region and evaluating and aligning our resources in the market for best outcomes. One of the things in that organizational structure that we spend a lot of time on is what does this joint organizational design look like? As you can imagine, bringing these 2 companies together is never easy. Different cultures, different people, people a lot of the times doing same types of roles. And so we've really been focused on making sure that everybody is in alignment, finding out what's best, and really looking to go make sure that everybody is held accountable, that we become a more data-driven culture as we move forward and focusing in on what the KPIs are for [indiscernible]. So these initiatives really have seen us kind of continuing to increase our opportunities and grow our revenues. We really have done a great job of continuing to control our costs. I think that we're going to hopefully find some additional opportunities there as we continue to look and bring these different disparate systems together and get onto common platforms. And it has helped us create strong operating leverage within the region. Real quick here. I did want to mention, so kind of talked about this, and I apologize, I didn't move through the slide. But again, to summarize what we've been talking about. We've really been focused on organizing and finding those benefits of our One Team approach. We began to leverage and cross sell within the organization, taking those opportunities joint market, continuing to integrate with our DMS providers and third-party systems to strengthen our ecosystem, really focused on driving that operating leverage, continuing to enhance our Americas footprint by expanding in globally as well -- or within the region as well. Before I kind of close out, I just wanted to take a moment and acknowledge as well and commend the team in Americas. I'm really proud of the team that we have assembled. It's not easy to go through all the change that we've implemented over this past year and they really have endured a lot of that change and done that with open arms and an open mind. I just want to take that moment and say thank you to them for their hard work, dedication and camaraderie and they really have been instrumental in driving us forward and with them, I'm really excited for the road that lies ahead for us as well. Thank you.

Thank you. Thank you. Oki, I think we can open for the questions.

[Operator Instructions]

Olivier?

Yes. Olivier Coulon from E&P here. Can we put numbers to any of the initiatives? I mean, obviously, it's great to talk about operational leverage. Jens, in the past you said you want to drive a 3% spread between top line and bottom line.

Yes.

Are we going to achieve that in Americas in FY '25?

I'm sure we'll achieve this in Americas. I'm not sure that I can talk about FY '25 yet because we said that the strengthening phase will go for FY '24 and '25 and then we come into scale based. So we are very pleased of what Oki is doing. I mean the Americas was always a bit of a problem. Since Oki took that on, the doors are opening and we see some growth. We see also synergies that we were expecting and therefore, I'm sure that we get there. The question is when. As I always said, that will be in the scale base. Tim?

Tim from UBS. Just a question around your sales team. I think you mentioned overall you've gone from 30 to 100. Was that with the -- as 2 businesses going together, how big is your sales team currently within that 100? And what size do you think it needs to get to in order to take advantage of the opportunity that's out there is the first part. The second part is, when you do go out, which groups are you going to? Like is it an opportunity with these automotive groups that are consolidating? If you don't have endorsements across the multiple brands that are sitting under their umbrella, are you still able to sell to them?

Yes. That's a great question. So in terms of the sales team and the makeup of the organization, we currently have 6 people in our sales team and that's inside and outside sales, really kind of at the dealer level. We have additional people on our business development side. We have 2 people there. And those are really chasing after those additional brands and going after the OEMs that we don't work with. And then our accounts team also does some sales function in terms of growing the existing accounts that we already are working with. And that team, gosh, I don't have the number offhand, I'll give it to you, but it's a sizable team there, bigger than sales, business development side. So through those resources, I mean, do we have enough coverage to go after every opportunity in the markets that we are? Not even close. Right. I mentioned 16,800 dealerships in the United States alone. That's a lot of phone calls for 6 people on the inside and outside sales team to be making, if we're even touching them on an annual basis. And so what we tend to focus on is landing these OEM relationships and then selling into those OEMs, putting more focus there. In some instances with some of the products, we obviously have the ability to go all makes, all models, but it's probably a little bit more of a difficult sale in order to go land those compared to the OEM programs that we end up running or those endorsements that we end up having. In relation to the automotive groups, we're obviously talking to automotive groups all the time as well. More often than not, refining some of those individual dealership solutions based off of the endorsements for those programs, and then working our way kind of up into those brands as we start to kind of amass and see, hey, we have 20 dealerships with your automotive group. Maybe there's an opportunity to do some larger things here, as well as talking to those automotive groups from the perspective of a lot of them are [indiscernible] of the OEMs. So they have some different interests for solutions. Infodrive, for instance, right, it's more about DMS information coming out using those analytics there doesn't necessarily require those endorsements from the OEMs and every instance as well.

We have a couple of questions from the online audience. So I'll just turn to Kiara to ask a couple of questions online and then go back to it.

Our first question comes from Gordon from Cooper's Investments. Gordon asked, can you please provide an update on the DMS integrations with each of the 3 major DMS providers?

Yes. So we've currently integrated in with -- and again, different solutions, different integrations with these OEMs, right? These integrations aren't just a onetime shot of you've integrated and you're done. It's a continual process, integration. Data points change. Additional data points become available from these DMS systems as well. And you really have to keep in mind that these DMS systems historically are almost like, this is our data, nobody has access to it. And they're starting to open up, obviously, with entrance of Tekion taking a really different perspective there. The business models for these DMS systems have changed, too. So the Superservice we've integrated in with CDK as well as Dealertrack. We mentioned, in Mexico, we've integrated it into 17 DMS systems there as well. But again, an ongoing and continuous process, and we're continuing to look to expand those integrations as we move forward with some of our products we've seen in the depth that we go into as well.

And Gordon has a follow-up. Does integrating with DMS give you an actual competitive advantage over peers or does it just level the playing field?

Yes, that's a great question. I think it's a little bit of both. And there's no one size fits all today. In certain situations, again, depending on the kind of the vendor makeup and how advanced they are, there are certain situations and scenarios whereby you can get a competitive advantage by having that DMS integration. With other products, it's not as simple, and it really just kind of puts you on a level playing field, and it's kind of a minimum height to ride. So it's a little bit of a mixed bag of both.

Our next question comes from Mason from ICE Investors. Mason asks, have you deserved -- sorry, have you observed any resistance to the integration of multiple teams under the One Team model?

I think that bringing 2 teams together, right -- I mean you don't have any kind of conflict coming up maybe you're doing something wrong even, right. And I think that that's a healthy conflict, right, that comes about as part of that process, talking through people, addressing their concerns and their questions and I think we've really, really done a good job and really are one team as we move forward here as well.

Any question in the room?

Yes. Jack Daley from Shaw and Partners. Just on the DMS integrations, I know you mentioned CDK, Dealertrack. Are they -- in terms of timing, are they in pilot phase or are they live? And I guess how are you seeing them play out so far?

Well, as I mentioned before, these integrations aren't kind of necessarily just one shot and done situations. With CDK and Dealertrack, we are at a point outside of piloting base and launching with that and are going to market with this solution and also working and talking with our partners and expanding that out as well. A lot of our Triage product is with partners currently and so being able to offer that out to those solutions, too.

You expect the DMS partners to kind of market with you or is it kind of driven mainly by you?

Yes. Well, I kind of mentioned taking on is a little bit of a different situation whereby they actually leverage our data assets. So it's not just bidirectional push, it's us actually them leveraging our data assets as part of the product as well. Most of these DMS systems, the way that their vendor relationship works, a lot of the times it's, hey, pay-to-play type of situation when it comes to that integration. And so they will help to kind of list you on their marketplace of, hey, here are the details of vendors and providers that we integrate with. But they don't do a whole lot of kind of pushing and marketing for you on their side as far as [indiscernible].

Anything on Reynolds and Reynolds in terms of timing and how that looks going?

Always continuing to look at it with Reynolds and Reynolds. And this is one of the interesting things with these DMS systems, too. You would be ready to go, have all your resources ready as a part of all that, getting ready to execute contracts and agreements with them, getting everything resolved. Their resources aren't ready potentially as well. So there's a timing conflict sometimes with these providers where the stars kind of have to align. It's not necessarily just we're ready to go and we can make that happen to you.

We are ready.

Just going back to the size of the team in the Americas. I think it's about 100 now. Where would that have been in terms of the combination SimplePart and Infomedia Americas previously, like have you ended up consolidating and losing a few roles to get to where you are right now?

Yes. I mean -- I think right now -- I think at the time was probably roughly around somewhere around 110. Again, don't hold me to the number exactly, but probably was a little higher than it is now. But we do have a lot of open roles that are open right now as well that we're looking to backfill. So I wouldn't say that there was a massive amount of overlapping as a part of all that. Again with kind of the differentiation of the team existing in Detroit really was kind of a go-to-market team. And as we mentioned, those go-to-market resources, additional products, we have a lot of green field and a lot of opportunity there in terms of the reach-out that we require to happen, so here [indiscernible].

And I guess just with those resources you've got maybe a question mark begins. Are you looking to do more with what you have right now? I mean, now you've got that hunting license, I guess, with a couple of big DMS integrations, at what point you make the call to put the foot down and go out and hit those...

Yes, there are 3 more. So first, like a person that was just selling SimplePart e-commerce is now selling the whole solution suite. And we still -- to be pretty open here, we also still have to train them. So our products are very compelling. You need to understand what are the benefits and so on. So we are running the next big product day in Atlanta in September, where we further educate the team. They had the first big One Team event of 3 days where everybody gets to know each other, and we are continuously building up. So that's the more. Second more is then it's not only as Oki pointed out the Americas. We are now seeing traction in Mexico. And Mexico is a bigger market than Australia. We know how we participate from the revenue stream out of Australia. So there's a huge opportunity. We have 1 person there now. So as we grow and now as we have all the integration that is needed and that is already paid for, the next one that we sign up there will have a bigger profitable impact on our P&L because with the first one, we use the money also to acceptance of the integration. So we will, for sure, see some more in my roadshow that is coming up in September. We will also visit Mexico City again. And it's really interesting to see the pull. Sometimes I have to cut it short to like 5 meetings, and I could have 50 because there's so much interest in our solutions. So that's an area. And then the other more is, I think, what Oki pointed out. Canada. So we are in Detroit. We have an office there. We have people there that is exactly at the Canadian border. We don't know if we in the future need to have 1 or 2 resources, maybe in Canada and Vancouver or Montreal, but it depends how fast the market is developing and then we will resource out. What we don't want is we hire 10 people and then we don't have revenue against them. So it's a continuous step-by-step approach. And it's also then referring back to the 5-year transformation strategy. To find that AR revenue and ARC curve on paper is easy, but then the execution of step-by-step having more want to sell, having more people to sell, having a bigger portfolio and having more integrations, and with the Chinese brands that are entering now, the market also having again more of the white space that Oki mentioned, I think that's actually the foremost of the 3. What I find interesting and what I would like to add to the Chinese view is that Biden now put out 100% import tax for Chinese mates. So that's why a lot of Chinese brands are going now into Mexico, building new plants because they are in the free trade zone. So when they can demonstrate that the parts coming from these cars are not all made in China, but made somewhere else and produced and assembled in Mexico, and they can go around these import tax. So Mexico will develop as a huge automotive fund and we are already there and we are able to get further traction. So that's where I'm very excited.

[indiscernible]. How much are you doing with the Chinese OEMs in Australia because obviously that would be a benefit if they're going hard into Mexico that they already know at this level?

I have a number. I already revealed that our half year results, we had 3.

Yes.

We are currently going in blackouts. I'm not allowed to give you the new number. If you've seen something like double...

Okay. And I was just interested,, in the U.S., these big automotive groups that have 6 or 7 brands so like EPC is tough, but where you've probably underperformed in the Americas in the past is actually Superservice and Infodrive haven't been sold properly. But those are probably the products that most fit the automotive groups, I'm guessing. Well, what are they using at the moment? What would you be displacing?

Oh, I mean, every single one of these DMS systems, right, have...

Yes. They have a -- like a service, yes.

[indiscernible] are strapping things on other providers that they partner with as a piece of that as well. I mean, it's a very, very crowded market in the United States. But that's where, again, I think that there's these opportunities. And one of the things that we've mentioned, the initiative around that specialty dealer space. One of the things that we're looking at, we're starting -- we just kind of started to kick this off. But going and talking to the OEMs and dealers in the specialty space, they're all on paper and pencil for their Triage products. Maybe there's an opportunity, right? Like I think it's the same process that they run as an automotive dealership. And so we're starting to look at some of those opportunities and see if we can go and start to make some headway into those spaces as well.

Yes. Okay. It's not like there's an opportunity to go into like CarMax or something and sell them Superservice.

I mean, technically, the Triage product could be sold into those types of spaces as well. Typically, we tend to just focus in kind of on the automotive OEMs themselves and their dealers. But those are opportunities that we continue to kind of look at and evaluate as well.

So brands first, independent aftermarket second. But as we are collecting more and more OEMs and more and more data assets, we are also then more and more equipped to have all makes or models or data at our fingertips. And then we have to see how much we can use of these data from our data license agreements. But we see that they are now expanding already, because now we use them for catalog, we use them for menus, we use them for e-commerce. And as long as we can demonstrate that we can sell more service or more parts to the OEMs, we have also the goodwill and the trust and the push to get out with this data and monetize it. So that's good.

I think it's one of those things where the products and how they get leveraged across the portfolio. Taking in Triage you don't have any of the menus data or any of the OE data in there. It's still kind of a usable solution for CarMax, right, where you're basically managing and maintaining your service lane and those repair orders. And so is it as effective when you have -- if you had the menus? No, but there are applications for that. I mean, we have it in the United States Natural. It's an RV dealer. There's no menus data within it, but they're using it to be able to go. They're using Triage to go maintain kind of their service line and then those repair orders. They love it. So those are kind of those opportunities that could be out there tangentially as well.

You mentioned Triage. You're starting to get a little bit of penetration. You also said you want to round out the solution suite. What do you need to build or buy or whatever it happens to be to kind of have like a best-in-class solution that is regionally specific or regionally appropriate for the space? What else it needs?

I think the -- at the end of the day, dealers and OEMs are requesting like the full end-to-end suite and what we are currently building, that's more built here in Australia than in the Americas, is payment solution connected. It's a big thing. That's what we are currently building, to have a full end-to-end solution. Because as I learned from Oki, the Americans, they don't like so much online performance, so they just like to drive up on your service lane so you have to be ready, which is, from my perspective, a great opportunity for the other revenue stream that we are currently building, which is analytics and predictive analytics at 1 point. Because if you would know on these kind of days, that many Ford Rangers are coming into my Ford service lane from this dealership and I have to have these parts ready because we know from the past and from the analytics that we need these kind of replacements, then you are well off. And that's where the dealers are still a lot as Oki said, on pens and paper, on fax, on phones, to say, calling somebody, do you have that specific card? I have somebody here on the hoist and we cannot continue the job because that part is missing. So I think the stock and inventory management, based on the data that we have that we currently look at in our analytics suite is another dimension of growth. But we first have to build it. We are currently building it. We are doing a few pilots in EMEA because we have some engineering resources in EMEA and we have nice data sitting in EMEA and we have some pilot clients who are requesting that. So we will learn there if that works and we can roll it out into APAC and Americas. But we need to be careful. The Americas sales team, they have so much to sell, so much white space. So I would also not recommend to confuse some of these data analytics now. That's for FY '25 somewhere to come into a broader role.

Yes. And then -- thanks for that. Appreciate it. Maybe Chantell could answer a question. One Team, what does it mean for operating leverage? Like, if you hadn't done that integration, you talk numbers either like a percentage of EBITDA or dollar value as to what...

There is already a little bit in the financial lines that we put out there. So there are basically 2 payrolls and 2 insurers. There are 2 billing systems. There's 2 financial systems. And we are now bringing this together. And therefore, you have mid and long-term synergies on the system side as well as the people side. And as Oki said, the team did not grow, but revenue did grow because we could bring the team together and having a One Team approach also from the sales perspective, I think it's a very important way to sell now the whole ecosystem and not a point-to-point [indiscernible]. So Chantell, you might have a point.

I was just going to say, so we only started to do see synergies this year. So the full year financial results...

Yes, that was the next question that I had.

You'll be able to see some synergies, but what we've been able to do is scale better. So customer service, we had a customer service team that only dealt with simplified products and a customer service team that dealt with historical item products when they all cover all. As we grew, we had to keep putting people into that customer service team because we offer telephone support 24/7. And so we've had to reduce the acceleration of the growth in that customer service as an example. There's other areas as well. They had their own full financing, as Oki said, some of the first things I said, great, we'll just integrate that all into our team. We got rid of all of the finance people at the [indiscernible] above. It's got to be one guy who's driving things over there. And we see more of it across all of the departments.

So we got some benefits that we'll see in the second half, presumably more in the second half than the first half.

Correct. Because we started doing it in the first half.

Yes. Okay. And then a decent amount of annualization in the first half of next year.

I think that there's more opportunities as we continue to roll forward, right. I mean, can't do everything all at once. This integration, like I said, is never just a one shot and we're done, right. So there's more tools and solutions that we're looking at and we're planning and figuring out how we bring those things together. But I mean, again, it's across the board. I mean, originally SimplePart was using Google Mail or Gmail and everybody else in Detroit was using Teams and Microsoft products. We got to get all this stuff aligned, and it's a process to make those big changes that are really central to the organization.

Yes. Because they're on annual contracts. So we couldn't just cancel the contract. We have to wait for it to roll out unless we pay a huge penalty.

You got to make sure that all your planning is ready before the contract expires. If it doesn't, right, okay, well, maybe we're going to end up setting out for 6 months or a year and let that time go by.

You had a presentation, it's now probably 1.5 months ago, which had a chart or...

Bubble chart.

Yes, bubble chart basically. And it had some color gradients.

Yes. Did you get it because not a lot of people did?

I got some element of it. And so I was just wondering if we could have a little bit more expounding on the gradient part. As in what -- how large is the untapped opportunity in Superservice and Infodrive. Yes.

So the chart -- the size of the bubble was the size of the revenue that we have in the region relative to that product. And the color was the size of the opportunity. So a small bubble that was dark blue has a ton of opportunity. That small bubble that was very light blue has less opportunity, potentially, to what we've already tapped into. That's how you read the chart. Yes. It's detailed by product and across regions.

Yes. So that's the part that was obviously interesting and it kind of told you qualitatively what you wanted to know, which is obviously driving Superservice have a lot of growth. But is there any kind of view as to what the SAM is in terms of -- like when you do that kind of number for those 2 solutions?

TAM in the U.S. alone is probably 5x our current ratio, total revenue right. So I think it's not the question of is there enough white space. It's a question of how do you catch them first and where do we double down and where do we prioritize. Because we can basically go everywhere. But that's exactly what we don't want to do. We want to give the troops the right targets and the right wins, and then we gain them, and then we do the next and the next. And this is how we work. We have now Oki here. We have all leaders globally here every year. We are running a 1-week ELT executive offsite. We are then defining the priorities on the product side, on the tech side, the regional side, on the sales side. And then we see where is the biggest and fastest return. And then we drive these initiatives. As we did this year, we will do it for next year. So we will do a short review of FY '24, how did it work? How did we do? What did we achieve? And then we will go into FY '25. What are our key initiatives here? We're running always like 10 to 15 initiatives. We have an owner, we have KPIs, and we've seen milestones crossing.

Our next question comes from [ Dan from OC ]. Dan asks, are you observing an acceleration in Northern America ARR growth due to these DMS integrations? And how long is the sales process at the dealership level now that you have these DMS integrations?

Yes. We cannot reveal our second year results. So -- but we, for sure, will see acceleration. The question is when. And maybe you can give a little bit of color Oki to the sales cycle because it's -- as far as I understand, we have to sign up for the integration and we have to execute on the integration and then we go basically dealer by dealer, right?

That's right, yes. I mean, unfortunately, it's longer sales cycle in the United States, I think, compared to a lot of the other markets because of that. In those instances where we already have those approvals, obviously, it can be much faster. But the other thing that you have to keep in mind as well is that if you're replacing an incumbent kind of solution, once the contract coming up at the dealer level, you've got to go time those things as well, right. So it's not just, hey, we have this solution now. We can go sell to everybody as a part of all that. They got money on the line already. They're not going to go waste that money. All right, come back and talk to me in a year or 2 years, 3 years from now, potentially might even be the answers at that time. And I think that's really prevalent. As I was kind of mentioning about Tekion and those 5-year DMS cycles and how it's taking them time to be able to -- I think that they thought they were going to be much, much higher and much faster in terms of the dealer count that they have than they are right now. But again, those prolonged time cycles require you to go time the actual sales and execution of those contracts as well. It's tricky, right. I mean, there's a lot of movement within the dealerships in terms of the employees, high turnover that's going on these days, lack of service tech advisors, lack of service parts managers. So a lot of competition from an employee perspective within the dealerships. And as you go through these conversations and as those people rotate out, you might end up having to start completely over from the success that you've made of, hey when that solution is coming offline, and we're going to be ready to go and bam, the person is no longer there, and now you have to start all over. And that happens at the OEM level as well.

The good thing is that they're always popping up somewhere else.

That's true.

That's just part of the Mexican success there. They are all rotating in different roles. But I think, yes, it's also -- Tekion is still big time burning cash with their growth. So we are, I think, in a better spot to have profitable growth and not making cash burning assumptions like they do. And they are anyhow, not that far. So I think the way of going step by step is the right thing to do.

Our next question comes from [ Ray ], who's a shareholder. Ray asks, do dealers pay a set rate for IMS software? Or is it a pay-by-use model, for instance, pay by click?

It's actually a mix of both depending on products. And in some products it can be either or both. In most of the solutions, we have kind of a set monthly fee in certain situations. A SimplePart is an example of that. We have offerings whereby we actually say, hey, here's a minimum, but we can also go, charge you up based off of a kind of gross part sold and taking a percentage of what we end up generating for you as well. So different level of packages, different level of services. In some of the solutions as well, like DMS integrations, they might end up being charges for kind of, data, data fees depending on kind of the volumes that you have. So it's a mixed bag. There's no one answer to the question.

And maybe you can point out like how SimplePart is priced because we have another number like recurring revenue and software as a service. But then we have also a bit of a search engine marketing and optimization.

Yes. So on the SimplePart product side, there's kind of what I would define as, at its core, 3 different levels of packages. There is some variations in the middle there. But on one end, you get a website, it's got catalog data behind it, branded and everything, able to transact e-commerce in the back end to be able to process those orders, pay a flat monthly fee, kind of a pure software-as-a-service product. The idea originally was that, that was all we were going to end up selling. You put that solution out to the dealers originally, and dealers come back and potentially if they're not doing their own marketing, to go drive people to that website, right. Having a tool in a website is great, but if nobody is actually going to the website, you're never actually going to generate an order. And so one of the things that we ended up doing is we created kind of the flip side of that, what we call our pro package. And under that model, it was, we go through all of our services at it. We do search engine optimization, search engine marketing, generate traffic to that website as well as kind of the SaaS solution. So how do we go generate as much traffic to the website? How do we consult with you to tell you, hey, here are the things that you do in order to go generate as much conversion rate with that traffic to the website as well, thereby generating the most revenue at the dealer level for parts accessory sales. In that type of model, we actually tell the percentage of the sales as kind of the fee with a minimum kind of backstop at a flat monthly rate. In the middle between those 2 is kind of a flavoring of what provides some traffic generation services to the dealer. And we'll call those kind of our base plus advanced packages. And in that model, we're kind of offering catalog, e-commerce solution in the back end, process the orders, and we'll do some traffic generation services as part of all that. But it will be a flat monthly fee. You'll pay for your advertising costs, which are pass-throughs to the advertisers, typically Google, Bing. And then we take a percentage of the ad budget that gets spent on a monthly basis as well for those services.

We do have a follow-up from Ray, who asks, does IFM pay manufacturers for their parts catalog? If not, what's in it from the manufacturers if it gives away its data to IFM?

Yes, I could take this because it's a global one. We just had moments here in our headquarters. So in some of the instances, we have data license agreements where we get the data for free. Why is it anyhow very lucrative for OEMs to share this data? It's because with the data, we can obviously empower to sell more of their genuine parts. So they will have an upside because on every genuine part, there's roughly 80% of profit margin. So if you buy a BMW part, you pay 80% more than you probably would pay with the part that comes from the aftermarket, which is a copycat. So they are really interested to sell more parts. In some occasions, like with MOBIS, we have an agreement with the MOBIS mothership, which is giving the data license for all their brands, like Hyundai, like Kia for the catalog, but also for the e-commerce solutions that we are running globally. And with every cell that we are doing, with every rooftop that is using our solutions, MOBIS get a kickback and a pay. So there's a double interest. First, they sell more parts and secondly, they even get a little bit of an upside of data license agreement when another dealership or another rooftop is using our services. So these are, in general, the settings, and then there are exceptions at local agreements and third-party agreements all over the place that if you think about this, sometimes are free, sometimes you pay a little bit of money, sometimes local, often global. This is how we source our data. And the upside for the OEMs is clear, because they sell more, more service, more drive-ups, their branded leaderships and more parts.

A couple of more minutes. We're taking question from Tim.

So 2 parts. The first one is just a bit more of a clarification from before, and I'm not sure I'm understanding it properly, but my understanding of the business, Canada and Mexico, is like Australia. You go to the OEM and then if you land a deal, it goes out to their dealerships, I think. U.S., you need to get the endorsement and then you need to go and pound the pavement to get the dealerships. So I'm just -- on the U.S. strategy when you're talking about your sales team being able to sell everything, how does that work? Because I understand from the OEM perspective, going after the endorsements is good, but endorsements mean nothing unless you get into the dealerships. Like you guys got the Hyundai endorsement years ago, and nothing came out of it, right? So how do you get that part of pounding the pavement and getting into the actual dealerships with the sales team that you've got at the moment?

Yes. So, I mean I would sit there and say that in Mexico and in Canada, you also could end up going into situations. And again, every deal is a little bit different. There are situations in the U.S. sometimes whereby the OEM will say, hey, we'll create a deal and we'll offer it up to all of our [ dealers ]. They still have choice in choosing. You might be able to get the deal done at that type of level where you transact with the OEM, kind of push it into their dealer network, make it available, but it's not mandated as a part of that process. So you don't have -- you still have to go sign up dealer-by-dealer but the revenue isn't necessarily coming from dealer. The OEM is paying for it because they see the benefit of the program doing those things as well. It's really a mixed bag when it comes to that. I didn't really fully get the Hyundai side of thing. I'm not across kind of the signing up of Hyundai and...

That was a long time. I guess my question is more like for the part where you've got to pound the pavement, you've got a sales team of 6 and presumably a decent portion of those are targeting the OEMs to get the endorsements, et cetera. So like how many people do you have door knocking and how many people do you need to have door knocking to drive the top line?

Yes. Look, I mean, this is where I think that some of the processes that we're putting into place, Salesforce has obviously been putting the organization and again, becoming a more data-driven organization as we move forward. Those questions would have been very, very confusing beforehand. We had no idea of the answers.

Just to clarify, you say sales team of 6. Our sales team all in is over 40 in America. It is the inside sales team that sit under the telephone doing cold calling to dealerships. And previously, that was 2. Three times as size it was 5 years ago.

Okay. So sorry, 40 in the U.S.

Yes, we have 40 people that are customer-facing, used in one way or another, and they're all doing sales.

Got it. Okay. Sorry. I didn't understand.

We have different channels. Like we have, what you call, inside sales team.

Yes, inside, outside sales, kind of dealer...

[indiscernible] is dealing with different parts. The 6 is the phone call people who are just...

Okay. Sorry. That was a misunderstanding. I misunderstood that. Then that was the clarification. The question just around pricing increases. Is the U.S. a similar situation to other geographies where there's been kind of pricing freezes and now you've got to...

No, we had products that we just -- it wasn't a pricing freeze, we just didn't roll out price increases.

And so is that in play? And can you comment in terms of appetite from customer base, in terms of those discussions?

Yes. I mean, we've gone through this past year, one of the initiatives that we've focused on is looking at those price increases. Where do we have those opportunities? Where do we apply those? We went through a multi-phase process over the past 6 months probably. We still have plans to kind of roll out the last phase, kind of this initial round of things that will be going out and those are more on our kind of annual contracts and as those things come up. So we pull those things here as well.

Just a quick one, I guess, in terms of how you're thinking about growth in the U.S. given you kind of put the great process in place from a kind of team and structure perspective. How do you see 10% growth top line being triggered in the U.S. and like sort of what kind of time horizon?

Yes, look, I'm not going to end up speculating on time horizon part at all.

[indiscernible]

That's what happened last time. But look, I think that what we are doing right now and applying, we're continuing to go and put those processes in place, right, use the data and the information. I mean there's a great question around how many people do we need? How do we go hire more people because even those 6 inside -- outside salespeople are enough to go to reach out to every single dealer. That's what we need to do. Using the data and the information to come back and sit there and say, hey, these salespeople are generating on average this much in monthly recurring revenue that's coming in. Doing the math to then use that to drive great. We keep doing and adding people into the organization until we start to see those things slide backward, using the data to our advantage and our benefits to push those things as well. But again, I think there's a lot of opportunities in the pipeline. Look at those opportunities. The hard part and what we do is we don't know when those things are necessarily going to land. We can get a yes from an OEM and this has happened in the past. Yes, from an OEM. Let's go to do this. We agree to all the commercials, 2 years from a contract perspective, potentially. Talking about people rotating out from these manufacturers, right, and roles. We've had deals where we closed and then the person leaves and then a new person comes in and goes, what is this thing we're doing? Like, I don't fully get it. You got to start all over with those people as well. So it's really hard to kind of speculate on the timing from that side, but really doing the right things and putting the right kind of commercial rigor in place to be able to go and achieve that as quickly as possible.

So unfortunately, we're out of time at the moment. So we're going to have to wrap up there, but we appreciate everyone checking in.

No, I think that was great. Thank you for coming over, especially with your arm and this thing. It's not an easy travel for that long, but we are very happy that we have identified the right leader in the U.S. and that we are turning around the market and gaining the success and the achievements that you and the team is driving and also thank you for making the time and posting all your questions. We are somehow always a little bit limited by some blackout situations, but we also will provide a full update in August. And currently, we are focusing on the rest of FY '24 to bring the revenue in. And yes, it's been for me a very joyful 10 months with Oki at the helm of the Americas organization and we are building much more bridges now. Chantell is very close to the Americas teams and product. So I think it was a very, very good step to bring the team into what you always call One Team. So it's great. Thank you.

Thank you, everyone.

Thanks for coming.