Novavax, Inc. (NVAX) Earnings Call Transcript & Summary

All right. Let's go ahead and get started. Welcome, everyone, to the 44th Annual JPMorgan Healthcare Conference. My name is Anupam Rama. I am one of the senior biotech analysts here at JPMorgan. I'm joined by my squad, Priyanka Grover, Joyce Tso and Rati Pinhe. Our next presenting company is Novavax. And presenting on behalf of the company, we have CEO, John Jacobs.

Thanks, everyone. Welcome, and thanks for joining us to kick off 2026 at JPM. I'm John Jacobs, the CEO of Novavax. Before we get started, I just want to remind everyone, we'll be making forward-looking statements. So please review our SEC filings and disclaimers in the slide deck to make sure you get a good handle on the risk factors for the company before we present. Thank you. So our first slide says this is Novavax. And what's on there is a vision statement. And I know pretty much every company has a vision statement and a mission statement. We've all been through helping to build them and seeing them. But this particular vision statement has a real meaning to me, to our employees, and I think to almost all of us in biotech, if not all of us. My kids ask me as they're growing up and finishing college, dad, why did you pick health care? Why did you pick biotech as a career? Now we could pick anything. If you want a career that's super exciting, ups and downs of a roller coaster, right. Whether you're on the financing side or you're on the development side, it's a little hairy, a little scary, but wow, when it succeeds, what a high? What an amazing experience you can get from this job. But even more importantly, leaving a legacy, we all hope that we'll be remembered, but you watch these little blogs on Instagram and things and it says 50 years, no one will know who you were, right? But hopefully, we're all part of something bigger than ourselves. And in doing something really well, we can have an impact on the whole world that makes lives better around us. So our vision, we envision a world where our tech is amplified to touch the lives of not just millions, but billions of people, sparking transformation in global health. We mean this. We believe this, and we intend to achieve this. And we believe we can because we've got the tech platform to do it. We've got the talent and the people and the strategy and the vision. When I joined Novavax in 2023, and since then, we've been on a steady journey to transform this company. And when I joined in '23, it was a vertically integrated global commercial company with a singular focus on selling its COVID-19 vaccine. One asset created from a remarkable platform technology that has the capability to generate multiple assets that can impact the globe. So our mission was to stabilize the company financially in Chapter 1 of the transformation and to pivot to a new growth strategy where we can amplify the impact of this technology for our stakeholders, for people around the globe that are counting on us for our company. So what did we achieve in this '23 to '24 time frame? The first chapter of the transformation, restructured the leadership team, the management team, reshaped the organization with aggressive cost and liability reduction. In fact, when I joined in '23, the annual run rate on expenses was about $1.7 billion a year, 2,600 employees and $2.5 billion in liabilities with less than $1 billion in cash in the bank. They're having trouble selling the vaccine and manufacturing it. We cut over $2 billion in liabilities, eliminating them, renegotiating them, with the lead of Jim Kelly, our CFO, is here today. Jim, we did it as a team together with our Board. Charlie is a member that's here today, we did it together. We eliminated over $1 billion in annual expenses and over 65% to 70% of the headcount in the company. I had built a company prior to this. I was the third person hired at my prior organization, and we grew it 10x from the original founding investment. And when I came here to Novavax, I had come from an experience of building something from scratch. I was the third person hired. I actually bought the folding board table from Staples and a coffee machine that I put together myself as we started mapping out on a whiteboard how we were going to build this company around an asset. Very different when you're arriving somewhere and you're unwinding something without breaking it while maintaining your capabilities, saving it from insolvency, turning it and shaping the new strategy. But we're so proud of that first chapter that's behind us and what's next. So here we are in the middle column of the slide, our new strategy was launched in 2025 to drive value through partnering and R&D innovation, and we'll talk about that on the next few slides. With a vision in 2028 and beyond to a path to non-GAAP profitability as early as 2028, and that's with existing partnerships and plans without any new partnerships or deals done, potential to do that assuming execution. We envision a company with multiple large pharma partners, multiple diversified royalty streams and milestone opportunities and a very low cost base with the potential to see -- achieve billions in milestones and royalties with current agreements alone. So what is this new strategy? It has 2 key components. One is partnerships. We have strong existing partnerships that drive current value right now, but have the potential to amplify that value over time in and of themselves. In parallel, we're seeking new partnerships to help grow that platform, and we'll talk about how. Part of the way we're doing that is through R&D innovation. So unlike a traditional biotech model where we have a pipeline of assets, we bring them all the way through Phase III. We try to commercialize those. We're raising capital. We're doing that. We're using R&D for 3 things. And Ruxandra Draghia, who we brought in about a year ago and has revolutionized and evolutionized what we're doing at Novavax, Rux, great job, with R&D is helping her team to fuel this partnering and this strategy approach through 3 legs of the stool. First, driving further proof points and value of our tech with data generation. Rux and her team actually work to generate data with our tech platform and other companies' assets and platforms. So our business development team led by Elaine O'Hara, who's in the front row over here, can go into these other companies and say, here's what you have, here's what you have plus our technology, look what this can do. Get them involved to experiment with it on their own, and it's our intent to turn that into future partnering and deals across multiple portfolios. Number two, expanding the utility of our technology. Ruxandra and her team are helping us explore oncology as a new avenue to open up a totally new dance floor of potential partners for the future. And finally, in a little bit more of a traditional sense, we can make our own assets from our tech platform, but we're planning on taking them through only the early stages of development to initial proof of concept, initial point of potential value, so we can use those to drive additional partnerships. And that's all supported by a lean operating model. As I've said, we've driven down those costs, and we'll talk to you about how we're guiding to where we're headed with those cost. I mentioned a few moments ago that we see the value creation opportunity amplifying over time at Novavax. So let's talk about just existing partners alone. We've got Sanofi, Takeda and Serum Institute of India, each remarkable partners in their own right. We're very grateful to be partnering with them on this journey. As Sanofi for an example alone, currently, the first left column, that's now. So were eligible for milestones, royalties for 20 years on sales of our COVID vaccine. Nuvaxovid from Sanofi in markets around the world, including Europe, the U.S. and other select marketplaces. In fact, we've already earned from this partnership over $800 million in nondilutive capital in the last 1.5 years or so. But then what could be next with Sanofi, it doesn't stop there. In the near to midterm, we're eligible for milestones and royalties should they and when they choose to advance combination vaccines. So they have 2 combination vaccines in development. They announced last year that they had positive Phase I/II results both of those programs that were fast tracked by FDA. They both include our COVID vaccine. And if any one of those moves to a Phase III study, we're eligible for a $125 million milestone and that study initiates. And then upon commercial launch another $225 million milestone and royalties for a couple of decades following that for one or both of those products in addition to what we can earn on Nuvaxovid. Moving over to the right side of the slide, you can see that there is a deal for Matrix-M as well. There's a component for that. Sanofi has unfettered access to our platform with Matrix-M. They can create as many new assets as they would like to with our adjuvant, our proven tech. For each one that they bring to commercialization, we're eligible up to $200 million in milestone payments and ongoing royalties for 20 years. So you can see as the partner advances over time, we can amplify the value of that partnership. We're looking to deepen existing partnerships, strengthen them. We expanded our partnership with Sanofi last year to include pandemic flu, which helped them to earn a grant from BARDA and to advance their flu product with our Matrix adjuvant, as an example. I'll point down to the bottom left of the slide before we move on, where it says other. We've made recent announcements about these MTAs. So what that means is we signed an agreement with another company, they get to experiment with our Matrix-M. We provide the supply to them and then they experiment in their own labs. And as I said earlier, Elaine and her team can go in and say, look, we've done a lot of work. We can show you that Matrix-M can work across different vaccine platforms, including potentially yours as a potential partner. We show them what we can do. They get excited. They signed an MTA. Now they're trying to duplicate that and more in their own laboratories. Should that pan out right and they get excited about that, we intend to turn those into future partnerships. In the last year or so, 2 top 10 pharmaceutical companies above and beyond our current partner list have signed those MTAs and have been experimenting and assessing is firming with and assessing Matrix-M in their own portfolios for their own purposes. We just announced here at the conference that last quarter, another large pharma in addition to those 2 and in addition to our existing partners, just signed an MTA and has received their samples of Matrix-M and are starting their experiments. We have other MTAs that were signed including an oncology company and others we haven't even disclosed yet in smaller organizations that are each at different stages of experimenting with our Matrix-M. It's our intention that some or all of these turned into partnerships over time that we can then have amplification of value through over time on a low lean cost base. So looking back at '25, we're sitting here in January '26, it was a year of achievement for Novavax. We finally achieved our U.S. BLA licensure on an even playing field with mRNAs for the first time now this year in 2026. We're looking forward for Sanofi's launch, formal full launch of that product under a BLA license with the chance to do full contracting in retail in the U.S. Very excited about their intelligence, their prowess, their capability and what they'll be able to show this year on the first full year of launch for Nuvaxovid in their hands. We achieved every anticipated milestone from Sanofi to the tune of $225 million last year. And as I said, they announced positive data on their 2 combination programs that should they bring that forward further we're eligible for milestones and royalties. Takeda, our partner in Japan, a top global pharmaceutical market delivered over a 12% market share in that key market in 2025 for Nuvaxovid. Great partner, very proud of Takeda and glad to be on the journey with them. Serum Institute of India, if you've never been there, I encourage you to visit, if you can. What an amazing facility that they've built. They provide most of the vaccines for children around the world at a very good price point. In fact, the R21 malaria vaccine, it's not the biggest revenue maker for Novavax. It won't be in the future. But it's probably the biggest legacy and impact on global public health you could imagine, 25 million children in Africa over the last year received a shot of that vaccine. 85% market share, by the way, in about a year from Serum Institute of India, fabulous. Imagine the millions of lives we can save from malaria. And what that does provide is a huge safety database, a large database that others can reference from a value perspective for Novavax and more proof point for our technology. What to look for in the future, '26 to '28. Look, we want you to watch out for more partnership announcements. You won't know until it's done and it's inked, and then everyone will find out at the same time. It is our intention to do many of them. We don't promise. We don't get over our skis until it's done, it's not done, but it's our intention to do that, and we look forward to hopefully exciting you and surprising you with some of those things in the near future, preclinical data coming out of our pipeline from Ruxandra and her team, products going into the clinic as early as 2027 from our pipeline and additional licensing agreements as discussed. Another thing that excites us about where we're headed with the new strategy is the potential that we're tapping into from a global market perspective. So our technology and our strategy is leading us towards tapping into a market potential globally of over $100 billion by the early 2030s. And that's composed of 2 components, obviously, the vaccine space. So on the left side of the slide, global vaccine market was projected to be at $57 billion or so in 2024 and grown to over $60 billion in the next 4 or 5 years, driven by the key markets that you see there underneath on the other part of that graph to the left. And then on the right, this is a subset of the oncology marketplace, the subset that involves immunotherapeutics vaccines and adjuvant opportunities within oncology. And that's a new and growing area about $12 billion or so in '24, but projected to grow to over $42 billion or so by 2032. And Rux is in the middle of leading, we call Ruxandra Rux, in the middle of leading experiments with our technology to explore applicability in the oncology space. So very exciting for the future. And it is that very tech that allows us to fuel our pipeline, our partnerships and our value creation journey. Our Matrix-M adjuvant is very unique, right? It helps induce a broad potent immune response, compatible with multiple vaccine platforms, as I said. And it also allows the ability to lower antigen content in vaccines, which can help with side effects profile and also cost or COGS once the vaccine is commercialized. And then you have a recombinant protein-based nanoparticles and that proven platform, that safety profile, we just talked about a moment before. I won't go through the pipeline in detail, and I put this up and those of you or investors may see it and say, oh, is that going to burn a lot of cash or that looks like a lot of things going on for a smaller company that just came out of that prior journey. I think 2 or 3 things to point out here, they're very important. If you look at the far right column of the slide, what you see there are partners, Sanofi, Takeda, Serum, Sanofi, Sanofi, Sanofi, right? So we're leveraging these partnerships to bring forward these assets. If you look at the top, those are our 2 commercialized vaccines done through partners. In fact, we shed our entire commercial structure as part of that cost reduction, Jim, bringing that down. On the bottom, you see Sanofi bringing forward a series of early-stage assets and who knows what they might be doing preclinical, they don't announce that or speak about that. We can't speak for them, but they have access to Matrix. You have to imagine they're at least interested in experimenting with that, right? And then you have our late-stage assets in the middle to Phase III that we note there we're not making further investment in. So we're not burning your cash on that. Those are sitting ready and we're in discussions with potential partners all the time. And these are some of the assets on the table for consideration during those discussions. So the last thing -- the last point I'll make on this slide is the shaded box where you see those 3 assets, those program C. diff, shingles and an RSV triple. These are the early-stage programs. And in fact, in 2025, we spent less than $10 million starting to bring these forward. And in just the coming months, this is a low cost bet, lean, efficient model to bring forward more proof points for our tech, more data for our technology and potentially, should that data be amenable to us, should it be exciting marketplace, we can bring one or more of those into the clinic as early as 2027 and further them to the next proof point for value and use those to engender more partnerships. So the planned path to profitability. Hopefully, you can see our new strategy is intended to drive revenue growth through partnering and R&D innovation with a focus on a lean efficient model. Our target in '27 for SG&A and R&D expense, net of partner reimbursement is $250 million and a potential path to profitability as early as 2028. We talked about cost reductions. We came all the way down from $1.7 billion It was such a big graph. It sort of threw off the slide here before. So we knocked that part off. And you can see where we wound up 2025. But what a remarkable reduction in unwinding a global organization from the top down while not hurting our capabilities and pivoting at the same time, down to a $450 million net in 2025. We intend to take out, or Jim, another $100 million in this year, another $100 million in 2027 from that. And potentially, we could do even better than that, while not hurting our capabilities and while increasing shots on goal to drive value. And finally, before I wrap and join Anupam and the team here for our fireside chat. Really proud of this, in '24 and '25 we earned $1.4 billion in cash for Novavax, and almost 80% of that was from non-dilutive sources. In fact, we haven't tapped our ATM for any equity capital since Q2 of 2024, despite the difficulties the company had when I first joined it. We're very proud of that. Our priority is to seek nondilutive funding to drive this strategy forward as we continue to drop down cost and put more and more irons in the fire and drive potential value. And you can see the breakdown of the components of that capital on the bottom right of the slide. So I want to say thank you very much for your attention to this portion of our fireside chat. I'm going to sit down and join the team here and let's continue the dialogue a bit. Thank you.

Thank you. So I'll ask the first questions, there will be opportunities for the audience to ask questions as well. So when prompted just raise your hand, and we'll make sure your question gets answered. John, in your presentation, you covered the strategy here in a lot of detail. What are you most excited about in 2026 specifically about the strategy? And what should we be expecting next just in terms of catalysts and priorities?

I'll tell you what I'm most excited about is the interest we're seeing in our technology and it's honestly multiples above what it was when I first got here as a company because not everyone understood, the other companies didn't really understand fully what we were sitting on here in Matrix-M, what Novavax really has at its core, it was all focused on 1 product that we made out of dozens of potential products that could come out of this technology platform. And the focus is turning away from COVID season, all these things now to this amazing technology platform that we have, company after company after company after company are now chatting with us. Our BD team is out there. Rux, you and your team have generated an amazing data set, Elaine, you and your team, amazing job reaching to other parties and sharing that and really starting a good dialogue. The other thing I'm excited about and remain excited about is the dedication to the vaccine space. And despite macro factors that at times make us say, what can I expect there? We've had some stability coming from that with decisions that are getting made. And what I see and I think what we see, a couple of things, a really good energy reset now in early 2026 coming into this conference with all of you. And the companies that are dedicated to vaccines long term, they're dedicated to vaccines long term. They're doubling down. They're bidding against each other to buy other vaccine companies. There's M&A occurring. There's launches of new clinical programs getting announced. I think one of the CEOs from one of the top companies in vaccines was asked this question the other day, and he said, I'm thinking 4, 5 years ahead, not 4, 5 months ahead, that's the game here. It's a long game and we're in it and relatively insulated from some of those things because we're helping others to bring forward their assets. So those things have me the most excited. I don't know, Jim or Rux if you wanted to add anything else about the year.

From my perspective, obviously, focusing on R&D as we were able to generate the data with Matrix and different vaccine platforms, be it with viral antigens, being bacterial antigens, now these exploratory work in oncology. And they don't say that Matrix is going to work with every single antigen and every single platform that is there. But for the moment, what we have tested have actually yielded very interesting results that can be taken by Elaine and the team and those discussions are going with a variety of partners. And that's actually, that intel that, John -- in each of the computers that John is talking about, this is how we see Matrix. And I think that partners are not going to be disappointed.

If I could, when investors are thinking about the year ahead for Novavax, what Rux just mean is just such a critical catalyst for the company as she unveils that early stage technology. Increasingly, people are seeing well beyond what was initially a COVID story to what can be. And so you see that in the case of C.diff, VZV, the RSV triple, then you move forward and you say, how about our partners. Well, you got Sanofi who had great Phase I/II data with not 1, but 2 combination products, Nuvaxovid and their market-leading flu products, excellent. We get to hear about the potential to advance those programs this year. Another key milestone. Sanofi launching with Nuvaxovid COVID this fall. People are really excited about what is essentially the launch year, putting their full commercial prowess behind it. And then the piece that you can't necessarily know when and how it might come. These deals, John was talking about and Elaine, Rux and team are all working on. So yes, we're pretty excited about how the year will unfold.

And we'll talk about the deals here in a second, but what's your path to achieving sort of significant royalties from the existing agreement? Can you point us to any milestones that we should be expecting in 2026 from the Sanofi partnership?

Yes. And great question. And with the initial eye towards the Sanofi partnership, but of course, there could be others along the way. What we have -- for those of you who are familiar with the partnership, multi pieces to it, we had received $500 million upfront. In the case of COVID, we had the opportunity for $350 million in milestones and with combination products, another $350 million and we'll come to a Matrix as well in the moment. In the case of COVID, that $350 million in milestones, well, we already earned the first $275 million, okay? We did so through the end of last year. This year, 2026, we're guiding to the $75 million milestone. It's essentially when we complete tech transfer. Teach Sanofi how to manufacturer Nuvaxovid on their own. So that's the end of the COVID milestones. In terms of economics, long-term royalties, I think, 20 years more, we receive high teens to low 20s royalties on sales of Nuvaxovid and to give you a sense of what that could mean, the reminder is Sanofi is the leader in flu and has about a 50% market share, right, $3 billion franchise on a $6 billion global market, just to give you a sense of what they can accomplish in a seasonal space. So if you think about the COVID market, well, the manufacturers at your conference this week kind of reaffirmed the flattening of the market, stability there, about a $5 billion to $6 billion market and $25 million looks to be similar in '26. So what that means with the royalties I just mentioned, in order to get to non-GAAP profitability, we've got a breakeven point of about $225 million. In order to get a COVID royalty of $225 million or so, you would require Sanofi to sell somewhere just over $1 billion, which means it would require about a 20% market share. Do we believe Sanofi, who's got a 50% flu market share, has the ability over the coming years to grow to a 20% share and help drive us the non-GAAP profitability? We do. We think it's credible. In addition to that, John mentioned, hey, Sanofi is going to be working on their Phase III programs. There's a $125 million milestone tied to that. Well, that's pending their development plans, but certainly important, could that happen as early as 2028 as well, a 225 launch milestone, certainly possible as early as, look forward to hearing more.

And then partnering your technology, right, that's core to kind of your growth strategy here. We just heard that. Can you speak to the potential value creation from Matrix-M platform, additional partners. Do you have internal goals here on what you want to achieve?

Absolutely, we do. I may not share all of that with you today. But what I will say, look, it's a great question because well, I think we set a benchmark with the Sanofi deal. And when you look at the components that our team was able to negotiate, we have many members of our team here who are part of that. I mean, you're talking about a mix of upfront cash, milestones for development, milestones for commercialization, royalties. And anywhere we've done anything like this so far, it's been decades of royalties to come, right? So look for a mix of components to -- should we announce a new partnership in the future, a mix of those types of components across the spectrum. And what we're looking to do with each partnership is not just one asset, right? It's not like we have one asset, we give that to them and that's it, it's a platform. And they can apply that platform to their portfolio, to their goals, to their dreams about who they want their company to become and how they want to compete. So the goal will be to keep deepening and expanding those relationships over time. So what we see is now immediate opportunity with existing partners with the revenues coming in due to royalties that we expect to grow, right, over time as Sanofi penetrates that market now with the first full launch of our COVID vaccine this year on an even playing field forward milestones that were eligible for in the near and midterm, additional partnerships with perhaps some upfront cash and then milestones to bridge that gap as multiple. This is the vision and our intent. Multiple royalty streams start to come to fruition and start to grow.

How do you think just more broadly about sort of the global and U.S. vaccine markets, both in the short term and the long term, you talked about, what we think about it in 2026. But I mean, like, for example, this flu strain that's going around is like wicked, right?

No, really. We were looking at some of the stats and hospitalizations in the U.S earlier today.

So in the context of that and everything like how do we think about sort of your COVID sales for the year and the key levers to success for your partner?

Yes, certainly. So I think one of the things that we'd want to continue to emphasize is that, and you mentioned it in the case of the, what I'd say, very difficult flu season is the continued significant morbidity and mortality associated with COVID. I mean there's a high unmet need there and the hospitalization rates, the mortality rates at a higher level than what we see with flu and therefore, I mean, the reality is there may be vaccine hesitancy or certain years of ups and downs, but mother nature is what mother nature is. As Rux has reminded us quite often, and when the need is there, we would expect policy and vaccination to follow. And it's for that reason that we expect to see a very durable and important COVID market over time.

Also, I would like to mention that you are actually looking at this year's flu. But as we are talking about the platform technology, whatever strain or flu or any other variance or strain from the different pathogens would come up, then we will be able in a very short time, relatively speaking, come up with the right antigen and develop an appropriate vaccine. So we are looking at it not only as a singular kind of event, but as a continuing effort towards ensuring as John was mentioning from the very beginning that spark in global health.

Now you had the specific question about the levers, hey, how do you succeed in the COVID market in 2026, a market that we just said, and we're talking about $5 billion to $6 billion globally, all right? It's about an equal mix, I think, an expectation of U.S. versus non-U.S. Sanofi, it's going to be a launch year. It's going to be the first year putting the full commercial prowess behind it, and then have you think about 3 things. The first one, full contracting cycle. So critical to get our COVID vaccine in, in mass, in the retail pharmacies. And when you have someone like Sanofi, who has a full portfolio that they bring to a critical retail customer base, that matters, right? They can get you those pre-books. And this occurs early in the season. Think of the pre-book season being now through sort of the March time frame, where retail pharmacy says, I will commit to a certain amount of buys Sanofi, it's the first year of full BLA, prefilled syringe, competitive shelf life to go after it and add it to their portfolio. So that's part one. Part two, they use as a part of the learning season of 2025, the ability to do some piloting on commercial pull-through. So they've got all new campaigns tested, ready to go, right? So think digital, think about traditional DTC, it's ready to go. So that's number two. And then number three, and this is unique in many ways to what Sanofi brings, they're nonretail distribution through Baxter, proprietary distribution has the ability to really tap into that market, I think long-term health, integrated health systems with some leverage, you may not see from others. So I think with those 3 pieces to the puzzle, great opportunity, right, to launch and start what we would expect is just going to be a nice methodical build of market share over time for a great product and on the heels of it, really looking forward to them bringing the combination product Nuvaxovid plus their flu franchise over time.

Questions from the audience? I've got one more, but I wanted to open it up. Maybe final question for me. What are kind of the push-pull levers for reaching non-GAAP profitability, the guidance is 2028?

Yes. So maybe where I'll start there because in answering it is, hey, where are we today in terms of financial strength. We ended the third quarter with cash and receivables of approximately $810 million and then in the fourth quarter, announced another $110 million, right, through milestones and sale of assets. So you start pro forma with about $920 million. That gives us runway into 2028. And so -- and that's before you had any revenue coming in. So we're starting, right, starting in 2026, I think from a point of we're really pleased with exceptional financial strength. Then how do you get to non-GAAP profitability. You saw 2027 R&D and SG&A of $250 million. So point estimate noncash items, let's say, $25 million. So your breakeven is $225 million. You can get there with either the milestone on a launch of a kick program, but importantly...

Share of Sanofi growing...

On COVID, new deals, there's multiple paths to get there. And that's why we say we feel like we can get there as early as 2028, we're not relying just on cash coming in. We're driving down cost, right? And so we're going to control what we can control and then support our partners as they drive products.

And they need fiscal discipline, Jim, across. And we work together, the whole management team, our leadership team here to really change the culture of the company, the mindset of our employees to fiscal discipline. You've got people making recommendations on the napkins where the people eat on how to save even a nickel there, right? Everyone's thinking about prudence, focus discipline, lean operating model, we continue to drive it down. We're not relaxing there. We're not taking our foot off the gas there at all as we continue to drive value.

And for what it's worth, getting to non-GAAP profitability, really important to us, getting to cash flow, orders of magnitude beyond our cost structure. Well, that's where we're headed.

That's our vision.

That's our vision. That's our intent.

That's our intent.

All right. Thank you, john and the team.

Thanks, everyone.