Jack Henry & Associates, Inc. (JKHY) Earnings Call Transcript & Summary

We'll go ahead and get started here. I'm James Faucette, senior research analyst here at Morgan Stanley, leading the FinTech coverage group. Very pleased to have with us today, Mr. David Foss, and thank you for being here. He's Chairman of the Board and CEO of Jack Henry.

Jack Henry has been a stalwart within fintech for a long time. You guys have delivered technology to financial services across a broad swath of it for a very long time. But maybe, Dave, from you, can you give us a brief description of your business, how it stands today maybe for those that are a little less familiar with the business?

Sure. So Jack Henry completed 46 years in business, by the way, this year. We are a provider of technology solutions to banks and credit unions in the United States, both community and regional banks. We, by strategy, choose not to serve the Tier 1 banks. We've been in that business before, don't want to serve the Tier 1 banks. So the top 10 or so, that is not in our market. We also choose not to serve the really tiny banks and credit unions in the United States. We're that kind of middle swath is where we play, community regional banks and credit unions in that middle markets. We provide a very broad suite of technologies. So what I say regularly is almost any technology you need to run a bank or credit union, you can get from Jack Henry. So pretty much every piece of their business as far as technology needs, we provide. It's interesting, James, to hear you reference us as a fintech. I use that word all the time. Usually, people when they think fintech, you think small Silicon Valley start-up. I will highlight that last week, I think it was, we put out a press release, the American Banker named us again as a top 50 fintech in the United States. So what American Banker does every year is they recognize 50 companies and only 50 companies that are the top fintechs in the United States, and Jack Henry again made that list. I highlight that for a couple of reasons. Number one, none of our major competitors has ever made that list, and we're on it, I think this is our sixth year in a row that we made that list. So none of our major competitors have ever been on the list. And number two, because every other company on the list does fit the profile you normally think of as a fintech. So less than $100 million in revenue, fewer than 500 employees. And here, we have this 46-year-old technology company, $2 billion in revenue, S&P 500 listed company on what I refer to as the cool kids list. And the reason for that is we're delivering all this really great technology and our industry is recognizing that. So really, really nice recognition by American Banker.

Well, for sure. And look, I think when we had -- like you had your investor meetings a few weeks ago, I think that, that was a key part of the messaging and time spent was the depth of technology and capability that Jack Henry can deliver to this kind of core group of banking customers that you have and you service so well. So let's start with them as a customer set. And given your recent sales performance, can you talk through what you're seeing from a sales motion and decision cycle perspective across your offerings with that group of customers?

Yes, it's been interesting. So pre-pandemic, Jack Henry was on a really terrific run for about 3 years as far as sales were concerned. The pandemic slowed everything down for us as it did pretty much everybody in our industry, decisions kind of came to a stop. As our customers who historically, so think about a bank or credit union, they relied on people to come into branches, they relied on person-to-person contact. And so with the pandemic branches were closed, they all had to rethink their operating model. So sales really came to a screeching halt there about 2 years ago. But as our bankers adjusted and started to understand how to operate remote and really adopted the idea of digital banking more strongly than they had in the past, they are back in that buying cycle again. So there are a couple of surveys that I cite every year in the earnings calls. One, I always quote in the November earnings call, one in the February earnings call, the talk about expected spending for the coming year. And so those 2 surveys that I cited at the end of last year and the beginning of this year said spending should be up around 10% on average, almost 10% on average in our space. And sure enough, that's what we've seen. So sales bookings have been really strong. We set an all-time sales record in the December quarter, which is our fiscal Q2, all-time sales record in Q2. Q3, the very next quarter, we didn't set an all-time sales record. We set an all-time Q3 sales record. So for the quarter, 40% higher than any other third quarter, which is normally a down quarter for us. Because of Jack Henry, what we get on the sales side is we get a year-end at December, then we get a year-end in June because it's our fiscal year-end and every buyer knows it's our fiscal year-end. And so they're trying to cram deals in before the end of the fiscal year. And so to have a record in December and then such a strong quarter in Q3, really a good indicator, I think, of what's happening in our space. The other key indicator that I follow is what do we have in the pipeline. So I do a pipeline review with all of our sales leadership team every month. And so I get regular updates on what the pipeline looks like. Pipeline continues to be very robust. So there's still a lot of activity out there. And I think it's logical because whatever is going on in the economy, we all know the challenges that what's on the horizon here and what we're already experiencing with the economy. The buyers for Jack Henry technology coming out of the pandemic, they know they have a lot of upgrades that they need to do as far as technology is concerned. Regardless of who they have as a partner previously, they need to continue to upgrade their technology because customers aren't coming into the branch anymore, and they need to deliver technology that will deliver efficiencies. So every banker you talk to today is talking about their efficiency ratio and trying to figure out how to become more efficient. Technology can help them a lot with that. So between the desire for an enhanced experience for the customer, whether it's a consumer or commercial business, much of that through digital, or whether it's the banker trying to create a more efficient operating environment, both of those are positives for Jack Henry because much of the technology we deliver today addresses those 2 things primarily. So it's a pretty robust environment out there right now.

So they're on drawn your experience running Jack Henry and being as focused as you have been. And kind of that 10% that you talked about that seems pretty well validated by whether it be third-party publications like the Bank Director or Cornerstone Advisory -- Advisor, excuse me. But their surveys indicate 10%. But how much of that is some of that catch-up from the hesitation that people maybe had in 2020 versus how much is like with rising interest rates, you would expect net interest income for your customers to be going up as well. And so maybe there's an opportune time to invest? And clearly, like these are important dynamics. But how do you allocate resources and planning to beyond just the next 1, 2 years? Like what does that pipeline tell you? And what's the durability from your perspective?

Yes. So it's an interesting question because much of our job as a technology provider in this space is to see around corners just try to anticipate what's coming in the future because the worst source of information about what bankers are want to buy are bankers.

Bankers, right. Exactly. Right.

They don't normally know and they're not thinking about technology needs to solve a problem. They may see a problem, but they don't necessarily understand oftentimes the technology can help them solve their problem. But for us, it's a combination of talking to bankers. We do a lot of -- we host client conferences. In fact, the day after you were at our investor meeting, we had 2 days with what we call our Strategic Initiatives Symposium where we invite in our -- about 150 largest banks and credit unions, and we talk strategy with them. So we do a lot of interaction with our customers. But then we have a team at Jack Henry that spends all of their time investigating what's going on in the industry, trying to help us see what are trends, what are areas of interest that we might be able to leverage for new technology innovation. And so -- and then you have a bunch of folks on our team like me, and I've been in this space for 37 years, all of my career has been delivering technology to banks and credit unions. And we have a number of folks at our company that have that type of background. So a combination of all those sources of input, that helps us set strategy and figure out what solutions do we need, what enhancements do we need to the current solutions that we offer and what new solutions do we need? And then we solve those problems as far as new solutions doing, I think, a pretty robust build by partner analysis. So we've gotten really good at Jack Henry at walking through those options. When we see some new opportunity, should we build it ourselves? Should we acquire something or should we partner with somebody? I will point out we rarely partner. And the reason we don't is because we are well known in our space as the premier provider for customer service. And if you partner, you run the risk of eroding that reputation by customer service. So we normally will build or buy. But if we do a partnership on those rare occasions, we have pretty strict rules about our ability to support those customers fully as opposed to outsourcing customer responsibility to a third party.

So when you talk about technology and seeing around corners and the like. At the Investor Day a few weeks ago, you spent a lot of time talking about the Banno platform. And can you give us a brief history of like where did that come from? What's its core selling points? Like how should we think about that within the scope of and spread of everything that Jack Henry offers?

Yes. So Banno is the name for our digital banking platform. So if you think about Internet banking and mobile banking, whatever you run today, whatever experience you have, think about those as one single platform with a single consistent user experience. We acquired Banno about more than 8 years ago now. A little tiny company, driving just a little bit of revenue, definitely no EBITDA. But we looked at that company and saw the technology that they had created and the direction that they had was totally innovative. Nobody else in the industry was thinking the way they were thinking. And so we acquired the company knowing we're going to have to put a lot of investment in, but also feeling strongly that we would create a platform there that was totally differentiated in our space. So we've been investing in that platform for 8 years. We've been in market for about 2 -- a little over 2 years with that platform. So you can think about that, we were 5, 6 years of investment and really trying to prove the concept. And it has been a home run for Jack Henry, really a successful acquisition and rollout for us. So today, what a bank or credit union can get from Jack Henry with Banno is a consistent experience. So regardless of whether you're sitting at your laptop or using your phone or using your tablet, the experience that you have as a consumer is exactly the same regardless of form factor. And that's unique in the industry with the exception of 1 or 2 competitors. But beyond that, within the application, there are these functions that nobody else in the industry is doing that really set us apart. So Banno has been a real success for us as compared to anything else in our space. Banno Business is rolling out later this year. So we've been totally focused on the consumer side. We're rolling out the business components later this year. And then shortly after that, we will start selling Banno outside of our core base. We even focused on selling inside the core base so far. Why? Because it's easier to sell inside your own core base. But once we get Banno Business rolled out, then we'll start selling outside the core base. And essentially, that creates a whole new market for that platform. The other thing I emphasize, whenever I talk about Banno is almost any bank or credit union in the U.S. today, regardless of whether they're Jack Henry customer or not, almost any bank or credit union today has a different Internet banking experience from their mobile banking experience. So think about whoever you bank with. If you pick up your phone, how you interact with your bank on your phone is probably totally different from when you sit down at your PC and interact with them on your PC. And what we have with Banno is that converged experience. And so we know that most banks and credit unions are trying to figure out how to get there where the experience is the same regardless of form factor.

So you alluded to, hey, there may be some competitors out there. Another company that we cover Q2 or one that we don't like, Alkami, et cetera. But when we talk to people about Jack Henry, those are the names, particularly the Banno platform, those are the names that often come up in conversations. How would you stack or characterize the advantages that Banno has versus them and versus other competitors in the market?

Yes. I think the key -- a couple of key advantages. Number one is the -- so Banno is recognized, and this is measurable. So this isn't just my opinion, the fastest by far application of any in the industry. So -- and it's measured in milliseconds, and I can't quote them accurately for you, but the time you log on to the time it's usable is measured in milliseconds. And so we've been highlighted as being by far the fastest application. That's a positive. The user experience. So in the App Store, Banno carries the highest rate of any , including the ones that you named, digital banking applications. So we have that to lean on. Then we have functions within the application that nobody else has. So for example, one that gets a lot of attention is what we call Banno Conversations. So let's say that you're working on your phone and you see it, you're looking at your account and you see a transaction that you don't think is yours. Well, with any other application, you either call the bank or credit union and say, "Hey, what's this? Or you launched some totally separate chat session that they may offer.

Right.

In the Banno application, that's all integrated into a single experience. So you can use a little widget to grab that transaction. And you can say, what is this? It's a chat, but it's called Banno. It's a chat, but it's within the application. So you're totally authenticated and secured. We know who you are, we don't have to authenticate you. You're not going out to a different application. You're not going texting or something like that. And so now the call center agent, whoever receives that chat on the other end can have a conversation with you through the application that shares personalized data and they can use these widgets as opposed to you typing everything out in the application. And then on the back end, we have AI helping the call center agent to answer questions as things are coming in. Nobody else in the industry is doing anything like that. And that includes the major -- the Tier 1 banks that have created their own cutting-edge digital banking applications, nobody is doing this. And so things like that, that really set us apart with the Banno application.

So -- and you mentioned as well, like opportunity to take that outside the core customers, et cetera. Like who is that going to be? Are you going to go further down market? Or...

So not to smaller banks. So I don't know what you imply with downmarket. Yes, it's not to go after smaller banks or credit unions. But it is to -- we already have a core basis, some non-Jack Henry core bases that we have identified that we're going to target with that platform. We know that there is demand out there. We know that those customers don't have very good options available to them, larger institutions, and we're going to go target those customers with Banno.

So I want to I want to ask you that strategically, like you obviously been very focused on improving the core capabilities that you can deliver to your bank customer sets and to credit unions, et cetera, and Banno is an extension of that. I think a lot of -- and you and I were talking about before the session started, that investors kind of view this right now as a safe haven area. But I want to ask you about like strategically how you've arrived at where you are today? Because if we rewind a few years ago, there was a lot of M&A activity in the space as other players in the market were adding merchant acquiring services, et cetera. Like what has been tempting versus not to expand into some of these other areas? And as kind of valuations change, does that change your build versus buy valuation of different opportunities?

There's so much rolled into that question. I'm going talk...

I know, I know. We could go on for hours and days. I know, but...

So a few things to point out. First off, for those of you who may be new to the story, Jack Henry was known for years as a serial acquirer. We've done a lot of acquisitions in our history. In fact, from 2004 to 2015, we acquired 32 companies. We are a very competent acquirer. We know how to value deals. We know how to integrate them in. We know how to put an emphasis on cultural fit. We know how to understand what would our customers buy. So if we acquire something, how do we get it out there in market and get the sales engine going quickly. We're very, very confident of that. In the past 3 years, however, between IPOs and SPACs and PE seemingly willing to pay anything for anything. As a disciplined acquirer, which we are, there weren't acquisitions to be completed. Every little company out there figured they were going to IPO and make a whole bunch of money, and they did. But now on the back end of all that, there's a lot of eye opening that's happened. A lot of these smaller companies who IPO-ed have been hit really hard in the recent past. And so I believe that may present opportunities. The better opportunity for us, I think, in the near term is some of these companies that were getting ready to IPO. And now they figure IPO is off the table, SPAC is off the table. PE isn't calling them up every 5 minutes like they did before because they found religion as far as pricing is concerned. And so I think there may be some opportunities for us here to continue to do acquisitions, again, like we were doing for many years there. So what types of things do we tend to look for? We're looking for technology solutions that, a, are appealing to our customers. So we don't go after deals where we can do some really clever financial machinations and take a bunch of cost out. What we tend to look for are things that we believe will be appealing to our customers that they will want to buy, we can hand off to our sales team and get the sales engine going quickly. We look for cutting-edge technology solutions that fit with our strategy. We look for things that fit with the focus that we have on serving community and regional financial institutions in the United States. So on the merchant acquiring question. 2, 3 years ago, I was getting beat up with these conferences constantly, a, your bigger competitors have done these big deals, where is Jack Henry at? Don't you understand the business? Why aren't you doing this? And so I was telling the story over and over again. We had -- prior to those big deals, we've been studying merchant acquiring intensely for 5 years. In fact, we even added a Board member to our Board, who was the CEO of a publicly traded merchant acquirer because we really wanted to make sure we understood if we wanted to be in this business. And what we learned about that business is, despite everything you hear from anybody in the space, you're really serving -- your customer is not the banker or credit union. Your customer is the donut shopper, the dry cleaner or the auto repair shop. And those customers don't care about service. We're in the service business. We're technology and service. That's what we're known for. We are not the low-price leader. Those customers are all looking for the lowest price and they'll switch like that for a lower price. And so we didn't want to be in that business because it is not really what we're focused on. We're focused on serving community regional banks and credit unions in the United States, and that's not what that business is. But you have to really understand the space, and you have to be disciplined, and you have to be willing to say, no, even though everybody else is saying, "You ought to say no." I'm going to say no and really focus on who you are and make sure that you remain true to what you know and who you are. We've had similar experiences where we've had people come in and say, "Hey, you guys ought to get in the business of providing core technology to hospitals because every hospital, they're in all the cities you're in around the country, they're highly regulated. They're highly dependent on technology. Every hospital has a bank executive on the Board. Every bank has a hospital executive on the Board, it fits totally with Jack Henry. And my response is, yes, it's a great idea. But we don't know the first thing about hospitals. I would be getting that business." We know banking. We understand how to deliver great technology to banks. So we're going to continue to focus on that area.

So quick follow-up on the point, particularly around potential new opportunities for acquisitions. How quickly are expectations rationalizing around what the right valuation level should be?

Yes, it's interesting. So I have a friend who described recently the process that's going on with some of these companies who IPO-ed that maybe shouldn't have IPO-ed in the past couple of years. He described the process as the grieving process. They're still trying to figure out is this thing going to come back to life? Or what's the end of the road? I think that's still going on for a number of these public companies that have been hit pretty hard. I think the real opportunity is on the private side where these companies were planning to IPO, now they're faced with IPO is probably off the table. Am I going to go do another capital raise? What's my strategy here? Most of them are not quite there yet where their valuation has kind of come back into a reasonable range, but we're getting there. We had conversations, and I can tell that it's happening. I was just at a Fintech conference this weekend. In fact, I just flew back from California last night. Flew to New York from California last night. And I can tell that it's happening, it's changing. So reality is setting in.

And what about implications for your own operations? And I've asked more along the lines of things like employee recruiting and hiring, retention, et cetera. I've got to imagine that the last few years, you felt a little bit of pressure from the grass is always greener perhaps versus now? And what does that look like?

So it's an interesting question because Jack Henry. And I think you know this, Jack Henry, historically, has been well below the national average when it comes to voluntary attrition, right? So we've hovered 3% to 4% where the industry is 8% to 9% for years. Really, it was last year, it was about April of last year that we really felt the effect of the great resignation. We had people leave. We've ticked up to around 8%. The industry popped up to about 20%. So we went up to 8%. That was eye opening for us. We've never had anything like that. I think we've dealt with all of that stuff pretty effectively. We're back to kind of a normal pace again of attrition. The thing that I'm excite -- I didn't say it this way, but the thing I'm excited about is you hear a lot of headlines about a lot of high-tech companies that they're doing layoffs right now. Will that present opportunity for our company to maybe attract some more folks? I'm hopeful that, that will. We've seen layoffs in our space directly in the fintech space that have helped us because people have come and applied to Jack Henry. They know us -- they view us as kind of a bellwether company that is solid to work for. And so we're known for having a very competitive compensation package, a competitive benefits package and having a culture that is a really great place to work. But we saw people chasing dollars. Right now, there's some of that -- let's go back to -- it's not just about the dollars, it's just being at a great place that's going to support us as employees and Jack Henry has that reputation.

So I wanted to flip back to kind of growth and you talked a little bit about where you're taking down, et cetera. But let's talk a little bit about the cross-sell opportunity. I think a few weeks ago, the -- at least the numbers that I took away was roughly half of your core customers don't actually use Jack Henry debit card processing, 80% don't use Banno Digital yet. So there's a lot of upsell opportunity there. And you really are only just getting started with credit card processing as an opportunity. Where do you think those numbers can go over time? Is this where should Banno eventually be in 80% of your customers? Or like where do these different opportunities fly?

Yes. So it's common for us. So we have around 300 different products at Jack, you named 4 of them, right? But we have about 300 different products at Jack Henry. It's common. Inside our core base, it's common for us to get to 60%, 65% penetration, that happens regularly with different solutions at Jack Henry. The other thing to keep in mind is we have more than 100, 125 or so solutions that we -- that are fully equipped to sell outside the core base. Well outside the core base, then the opportunity is 11,000 banks or credit unions. We have a sales force that is only allowed to sell outside the core base, but they're not allowed to call inside the core base. So they have to go out and do that cross sell to non-Jack Henry core customers. And we have somewhere around 7,000 noncore customers today. As an example, more than 2,000 of them run our bill pay solution. Well, that's a great group to go sell the next payment solution and the next payment solution to. And so we have sales forces that are committed or focused in those specific areas. And they are chartered with cross-selling exclusively because we have hunters that go out and find new core deals. But once you land a core deal, it was 2 different sales groups that only sell to those customers who have our core and then another sales group who sells only to customers who don't have a Jack Henry core. So lots of cross-sell opportunities.

Got it. I want to make sure we open up to questions for Dave. Any questions from the audience here? I want to ask quickly about as part of this margins, margin development. It sounds like beginning in 2023, we could see annual margin expansion of maybe 50 to 100 basis points seems reasonable at least to us. What are the drivers, though? Because that's a pretty big step up for a company that's been doing this well for as long as Jack Henry has. And I would guess it's a combination of further cross-sell of debit, credit and the core, competitive displacements, Banno, we talked about and later this year in the rollout of the small and medium-sized business in the commercial. But can you talk us through like what do you view as the key contributors? And then once again, how long can you drive that kind of pace of margin expansion?

Yes. Well, you named most of it in there. So you almost responded to the question.

Yes, that's the worst. Don't put me on.

So that's a lot of it. So in the 50 to 100 bps, we were public about it for this year, but we actually started that last year. And so we've been seeing that. We don't try to predict anything beyond 3 years. That just gets to be a little bit too difficult, but we believe that's achievable for the foreseeable future. We believe when the year is finalized for FY '22, which wraps up now at the end of this month, we believe we'll get in that ballpark for this year, and we see that as achievable for the foreseeable future. Primary drivers are just those things. So number one, we're taking share in our market on the core side. And when we sell a new core customers, they tend to buy a lot of other solutions from us. And of course, we have a number of high-margin solutions in that bundle. We are continuing with this move from on-prem customers to our private cloud environment. So when an on-prem customer moves from the license model to the private cloud-hosted model, they pay significantly more for that same solution. And our cost goes up that much. We have maybe a little bit of hardware capacity, but we don't need to add people because the same people that support you when you're running on-prem are going to be supporting you when you're running on the service model. So why would people pay you so much more to do that because they eliminate a whole bunch of expense within their financial institutions. They don't have to buy hardware anymore. They don't have to deal with the regulators on all the infrastructure regulation. They don't have to manage the security infrastructure. They can eliminate people. There's a lot of costs they can take out of their model when they transfer that to us, but we only add a little bit of cost on our side. And then if you look at the solutions that we're selling that you just highlighted. Banno, very nice solution for us when it comes to being additive to margins and digital loan origination. When we get the Banno business, that is not something that's a low-margin solution. And so you add all those things up and all this new technology that people are adopting, that's higher-margin technology, that's what gives us that comfort to commit to that.

Last question, tying back a little bit to what you mentioned, even the impact to Jack Henry from the kind of the great resignation is that it seems like a lot of what would be your bank and credit union customers have lost their own talent in their own back offices and maybe needing help there. If that ends up being a long opportunity, how do you address that? Especially given that you haven't really been a back-office consultant and operated in the past that way, do you have to adjust a little bit there? Or do you think it will come back? How are you thinking about that?

Yes, that's a tough one, and it's one we've already had to deal with on the credit union side of the business. Credit unions were impacted. And so we have staffed up. We are doing that today. We have a consulting business on the credit union -- well, on both banking and credit union, we have consulting businesses, but what they're really geared toward is helping a banker and credit union become more efficient. So it's all about best practices and helping them with their operations. That's historically what we've done. Now, particularly on the credit union side, we have credit unions come and saying, "We can't find staff. You guys are the experts. Can you provide people to help us?" That's very -- you can leverage one person to help multiple banks. So there's reasons you want to be in that business but you don't want to overextend in that business. We're not a body shop. That's not what we do. And so we're trying to find that fine line between serving our customers and helping them when they're in a bit of a bind, but not trying to become a full-on consulting organization because that's just not true to who we are. And in the long run, when you're in that business, when you're trying to manage a bench, and I've been there before, you're either -- either you keep your bench in place. When things slow down, you keep your bench in place, now your margins dropped to nothing or you're laying people off. Well, that's not our model. We don't do layoffs at Jack Henry. We don't staff up, so we can staff down. We're trying to walk the line really carefully on that topic, but it certainly is a topic now, and it's never been. I've been doing this a long time. It's never been a major topic before, but it is a topic now.

So if you look at -- just putting your kind of industry add-on or looking at it through that lens and not so much necessarily as Head of Jack Henry, which maybe is impossible. But does that portend do you think the need for a lot of these credit unions to go through their own wave of consolidation, et cetera, to hit efficiencies or no?

I doubt that. Most of them -- that normally isn't -- that type of thing normally isn't a driver for them to consider M&A. It's possible. This may be new territory that we haven't seen before. But the challenge right now with M&A. So M&A has picked up, and it's certainly been strong for a while. The challenge right now, particularly on the banking side, is bank stocks have taken a hit. And so there's people talking about M&A slowing on the banking side because of the valuations that bank stocks are seeing. And so we'll just kind of have to see, but normally that wouldn't be considered a driver for them.

Yes. It's a not a big driver for them.

No.

Yes. Got it. Good. Well, David, I really appreciate you being here today. It's always great. Like the consistency of the Jack Henry message certainly has resonated with the market in the last year to 2 years, and I would imagine this is the question that we get constantly from our investor base is like what is the defensibility, like the opportunity set, et cetera?

Well, the thing I'll stress, so you may have noticed, November of '19, so essentially 2 years ago, Jack Henry was recognized in the Journal as the best performing stock of all public stocks over the past 30 years, the best-performing stock. Now during the pandemic, a couple of stocks really benefited in the pandemic, Amazon and Apple, we are # 4 right now. But there's a reason for that. I think we're a competent leadership team. We know how to run the business successfully.

I chuckled a little bit at your use of the word competent.

You also get competent?

No, just from a standpoint, it's like it's -- yes, you're being modest a little bit. Thank you very much, David. I appreciate it.

Thank you.

Thanks.