PAR Technology Corporation (PAR) Earnings Call Transcript & Summary

All right. Good afternoon. Thank you for joining for the PAR Technology session. I'm Stephen Sheldon, I'm an analyst in the tech group at William Blair covering vertical technology, including PAR. Please visit our website at williamblair.com for a complete list of research disclosures and potential conflicts of interest. It's great to have the PAR team back at our conference again this year. A lot to dig into, especially with its continued strong sales momentum into the enterprise restaurant landscape. They've built out -- as most probably know, they built out the most comprehensive tech stack that we've seen kind of a SaaS platform for targeting larger restaurant brands and they're kind of going into convenience stores, going into new areas of the addressable market. We think it's profit and free cash flow should ramp pretty quickly here as some of these large contracts go live. So we think it's a great time to continue looking at this one. From the company today, we have President and CEO, Savneet Singh. We have Senior VP of Business Development and IR, Chris Byrnes. I thought he was sitting in the front row somewhere. He's in the back now. Okay. So he's back there. So I will pass it over to Savneet for a quick overview. With any remaining time, we'll move into a Q&A. So I'll pass it over to Savneet.

Great. Thanks. So I'm going to run through some quick slides to ground every word we do. But at a high level, our goal at PAR is to build the platform to run your enterprise restaurant. And the way we think about it is we're trying to connect everything from the guest experience all the way back to the employee experience with the operator being in the middle. And the reason kind of how we ended up here is that running a restaurant has gotten more and more complicated over time, not just because we, as consumers have become more demanding, but because the amount of technology flowing into that little -- those 4 walls has kind of become a burden to manage and oftentimes taking away the benefit of actually installing these greatly superior products. And so we've been working really hard to create a more unified experience for that guest. And by doing that, we think we can unlock a tremendous amount of upside to their business, both on the bottom line and top line. We power some of the most exciting brands and largest brands in the world. I'd like to say we power everybody from Sweetgreen and Cava all the way up to Burger King and everything in between. And a lot of our success is a commitment to being really focused on best-in-class and working what we call better together. There are very few companies that I think can scale at this kind of size. But what's unique about us is that while we try to convince you that everything we work with is better together, you can always plug and build on top of it. A lot of this has benefited from us having been in the industry for over 40 years. We've got a really strong reputation with our customers. And in general, I think if you are either an emerging chain that wants to be an enterprise, we're probably the one-stop shop. But additionally, if you're already an established brand, we think we've got the best name recognition. I sort of mentioned this, but it's worth double-clicking on. The end market we serve is QSR and fast casual Tier 1 restaurant, Tier 1 and 2 restaurant chains. These are big businesses that run a bunch of small businesses. And what makes it really, really challenging is that they are being inundated with new demands, both from the corporate level and from the store level and trying to make that actually work efficiently has not worked. You guys have all probably experienced that dynamic where you go to a restaurant or you're waiting a line to order food and the cashier is just filling the DoorDash racks and you're sitting there trying to still place an order and you're waiting for the DoorDash drivers that doesn't come. That lack of orchestration is a technology problem or an operational problem that can be solved. And the reason why it hasn't been solved is all these different parts of technology are just not integrated well together. And at the same time, you have that challenge on the labor side, the experience for the employee. And so all these things have just put an intense amount of pressure on the individual store operator. And as a result, you've had this explosion in technology. There are something like -- I forget the number, 10,000 restaurant technology start-ups that exist. And I'd argue 90% of them shouldn't exist. But the reason why they exist is that every time there's a problem in the restaurant, there's someone who say, "I'll look at a startup to go do that." And the challenge with that is that every time you add one of these new products to your store, the system itself crumbles because you have so many point-to-point integrations that it's really hard to make it all work. A really amazing example is within a restaurant, you might have literally a dozen menus. You have one for DoorDash, one for Breeze, one for the Instore, one for the drive-thru, one for the loyalty, online ordering and none of them run off the same service. And so you're really managing all these menus at the same. It makes no sense. You'll have a tax calculator at the POS, you have one in the online ordering system. You've got employee labor and employee schema in 3 different systems. None of it's meant to integrate to each other because, again, as you have all these problems, every time you have a problem, you'll say, let me go add another piece of software to go solve that, but none of them really speak to each other and connect. And we think that in the end, it's led to this challenge where you have really 2 bad options. You either continue to buy a point solution to solve each one of those little tiny problems you have. or you try to build the software yourself. And I would argue that both of these options slow restaurants down. In the end, these are restaurant businesses. They should be focusing on delivering great food and employee experiences, not building software. And as we talked about, this point-to-point idea of let me create -- let me kind of magically manage 20 different vendors, you really become a glorified vendor manager and not an experience creator. And so we believe that our platform really does make it simple to do what a restaurant does best, which is build these great customer experiences. And we sort of look at -- this is our racetrack slide, but really what we think is special is that we kind of hold the engagement side of your business, which is the interactions with your end customer to the operational side and unified into one so that if you have -- you can manage opportunity in both sides. And so as we get into a world of artificial intelligence, you can actually use those insights to do really, really special -- create special outcomes for your customers. So as an example, we're going to be coming out this year with some really cool technology connecting the back office and loyalty. So you might be in a restaurant and get a flag that says, "Hey, I use this as an example, hot dogs are expiring in 12 days." Normally, that individual little restaurant is going to try to figure out how I sell hot dogs because that's a franchisee or individual store problem. But what we'll be able to do is, hey, press this button to go build a loyalty program automatically or loyalty campaign automatically to go push it out to your customers in your little Zip code that, hey, we're going to go sell hot dogs. There's a big hot dog sale happening at our restaurant or a big promotion for it. And if you say, yes, I want to run that promotion. And again, that's a super complicated thing to do, but Gen AI allows you to target the right customers, whether it's text, e-mails, so on and so forth. It will then go back to the back office software and provision extra labor units to go service that customer. And so it's a beautiful way of connecting the front to back of house through one platform. That would never happen if these are all different pieces of software. But the fact that we have them under one roof allows us to do really innovative things like this. Our platform is squarely built on foodservice. So today, we cover everything from online ordering and loyalty, which we call engagement, to back-office payments and POS. And then we are -- we do have a large hardware business that supports the POS business. Our playbook has been pretty simple since we started, which is we look to build or acquire best-in-class products. I'll stress the best-in-class. We really, really care about having the best product. In the end, we're selling to big enterprises and the best product wins, not the best marketing. We then take that product and we couple it with really deep roll of expertise. I think if you were to talk to our customers, this will repeatedly tell you, we really understand the customer we serve. And then the most important part of what we do is that when we acquire or build a product, we combine it with our existing suite of products, making what we call better together outcomes, meaning that if you bought 2 products from PAR, you should be able to have a differentiated product outcome than if you bought them from 2 separate vendors, like the example I kind of gave you with the hot dogs. We really want to convince you that as you buy more, you get more functionality. So you're not buying a bundle, you're actually getting more product when you buy them from one roof. This is a bit of our flywheel. It's relatively simple, but I think it works, which is we try to land with a hero product, so in the example of point of sale. We do a good job, we get the right to sell you a second product. And so now we're selling you 2 products for the cost of 1 acquisition. And that then gives us greater economics than our individual point solution competitors to go reinvest in this more unified platform and build the go-to-market. And this is what's really, really working for us. And I think some of the margin expansion that Stephen mentioned is being a result of this. We've had a really sort of rapid rise, I would say. Our business has been around for a long time, 50, 60 years, but we got really reinvented 6 or 7 years ago when we kind of went all in on the software business. And you can see we've had tremendous organic growth, but we've also been very, very successful on the inorganic side as well. We've -- we're very active in the M&A part of the world, but I'd say that what's unique about our M&A motion is that it's highly focused on product. It is an R&D initiative, not a financial initiative first, which is, are we solving a product gap, meaning that can we acquire a product, can we then integrate it into our products to create a unique customer outcome. What's been great is that I think over time, if we look at our acquisitions, they aren't run as disparate little companies. It's not -- you're not betting on a capital allocation of a private equity fund, you're actually building on a vertical strategy that seems to have worked. Our M&A is really, really precise. There are 20 companies that we think are a great fit, and we focus on trying to eventually bring those companies into the fold. But it's not programmatic. We've gone 2.5 years without doing a deal. And then last year, we did 3. So it's -- I always get a little defensive when people say we're acquisitive. It's -- we are product acquisitive, and it is really -- the timing of M&A really depends on if that product -- the availability of that product at that time. So we will not go buy the biggest company that exists. We will buy the company that has a product that fits within our flywheel better. This is a sort of a repeat slide, so I'll skip it, but we really think we're just getting started. Global foodservice is a relatively large market. Today, we're focused on restaurants. We've expanded into convenience. And over time, we think we'll be able to build a global business to do the same. Foodservice is kind of interesting in that we usually think of foodservice as restaurants, but the fastest-growing category for food in the United States is actually convenience stores. Convenience stores are compounding their foodservice offerings at 14% or 15% a year. Restaurants are barely growing. And so our goal is to kind of swim to where the puck is going or schedule where the puck is going as the delivery of food changes more and more over time. You probably noticed that when you go to stadiums, you now have the ability to get delivery at your seat. You have the ability to get loyalty. Those -- you're going to see more and more demand for our foodservice technology solutions as the market grows. We'll continue, I think, to kind of quick expand our playbook, which is really focused on the Foodservice vertical. We'll continue to see if there's products that make sense for us to add. But most important is going back into the well of upselling back to our base in an integrated offering because we've really, really seen that if we can make 1 plus 1 equals 3 from a product perspective, the cross-sell kind of happens. And we just reported a few weeks ago, and we had now 2 quarters in a row where every single one of our POS deals is multiproduct. Almost all of our engagement deals are multiproduct. And so we're kind of at this point now where we used to be 100% new logo driven. Today, we have this cross-sell element that's kind of neat. We're growing rapidly both through cross-sell, upsell, international expansion, new verticals. But at its core, we're still really early in the digital transformation of our core market. Most of our growth is still in new logo, which I think is very, very exciting. And as I kind of round up, our brand promise though is to continue to always be best-in-class. We are obsessed that we have to have the best product. We really kind of demand that of our product managers. We have ways to measure it. Simplistically, if someone on our team says they have the best product, we always go back and say, are you the highest price? And if you're not, you probably are not the best product. But we really do focus on how do we have the best product. We never want to win on the bundle. We want to win on actually having the best product. We obsess on being open, meaning, hey, if we don't have the best product, you should be free to have your own innovative ecosystem that you want to build yourself. Do you think you can build it better than us, go build it. And lastly is this idea of better together, which has really, I think, been the unlock for us going forward. I think like most companies, we think we've got a unique culture, but I'd say our culture is intense. If you read our values, they aren't like super fun. It's not like curiosity. They're like urgency, ownership, speed. We really obsess on winning. It is a culture that is super harsh. I think our values oftentimes scare new recruits and attract them, and that's kind of what we want, why they were built that way. And we think we're at day 1. So long story short, I think we've sort of transformed historically a hardware business into hopefully the category leader within software. We've got a playbook that we think is repeatable. And I think that our flywheel for growth is moving really nicely, but has room to grow as we've now kind of unlocked this cross-sell opportunity. That is it?

That's great. You really do -- you're a notorious fast talker. I always know I'm going to have more time with you, which I think you guys take the value of speed very seriously even in how you present, but that was great. Maybe starting here, as we think about -- I think you had a slide there showing all the pain points that kind of restaurants have faced. Can you maybe talk about how those have changed as we've progressed through the last 4 to 5 years, I think back to the pandemic and it seemed like it was all about e-commerce facilitation, how do you meet your customers when they can't physically come into your store? How has that changed as we've kind of progressed over the last 2 to 3 years?

Yes. I think -- so you've had to switch from the -- let's get digital to let's clean up the back of house. But I would say the biggest challenge today is just getting the stuff you have to work. The lack of these point-to-point integrations are really challenging. And you see it like every which way. And so I think that while there's definitely more focus today on cleaning up the back of house, making sure the kitchen can operate in a world where you now have 10 different ways to order your food. It's actually getting the stuff to be tied together that's been the biggest challenge. Every restaurant company in the world wants to talk about AI, but nobody can implement it because your data is in 10 different places. And so everyone is like, oh, you'll see -- I'm sure you'll see this soon, but I'm pretty sure every single company on that map -- on that diagram is going to have, here's the agent to use for your restaurant. Here's the agent to use for restaurant. Like in our view is the winner there is going to be the one that has the largest platform. So anyways, I think the big challenge is actually getting the stuff you have to work rather than one area in the industry now.

And maybe with that, you've done 3 acquisitions. You talked about it, you didn't do anything. You did Punchh a while ago. You did 3 over the last year. Where are you at in the integration process with all these different assets? What's gone well on the integration side? Where is there still more work to do?

We moved fast on integration. So generally, within 90 days, we've got sort of defined goals we want to get to. Those goals are in 3 buckets. The first is the organizational design, how we set up the organization, who reports to who. It's always an awkward thing when you acquire a company and a bunch of people with a C-level title all of a sudden are our VPs. How you manage that is really important. And so we kind of hit that upfront. We've got a 90-day culture playbook. That culture playbook is everything from here's when the slack changes, here's what the e-mail signature looks like. Here's a logo change. But then it's about here's how we're going to connect the cultures of the company. Here's how we're going to change -- update the values or here's how you're going to meet the sequence of town halls you're going to have with leadership. And then it's the product. And the product side is the most important one. And so -- and that's the one that takes the longest because you've got to actually make sure that you can create that 1 plus 1 equaling 3. So if I look at our last couple of acquisitions, once we're a year past the deal, we should assume that the customer has real unique functionality they didn't get before. What's great is our last deal, Delaget, which was done the last day of 2024, we've already gotten to the point where the products are really integrated, where we've released functionality where customers can say, "Hey, I will go ahead with both these products. I just got all this new stuff I didn't have before." So that's been kind of fun to do at a faster pace than normal. But usually, it's like -- it's a real year before you can prove the product synergies. In the back office side, it's definitely shorter.

Got it. Maybe talk about purchasing behavior because I think one thing that surprised me when I was first digging into the space is it seemed like a lot of these big restaurant brand CIOs talk to each other. It seems like there is a big referential motion to this. So maybe talk about the purchasing behavior. You've had some big wins. Do you think some of these wins might help you get the next Tier 1 customer in the next? Like how do you think that will play out?

References are huge in any vertical market because they're all relatively narrow markets. So for us, it is probably our best sales motion is a reference from an existing customer. I've always argued we are probably the worst marketers in our category. We've just not been good at getting the word out there in the right way. But we've won a lot because our references are the cool kids on the block like a Sweetgreen or Cava, all the way up to a Dairy Queen or Burger King. So we've got great references across whatever your restaurant site might be. I think the other part that matters a lot is point of sale is the most critical product within a restaurant. If it goes down, your online ordering doesn't work, your loyalty doesn't work, like literally nothing works. And so if you can do a good job on the most important product, you have an incredible influence on that brand to partner with you for a long time. And so if you can figure that part out, you're in an amazing spot. Conversely, if you screw it up, like the chance of an upsell is like 0 or negative. And so we kind of obsess on making sure that we hit our promises. I think that in software, generally, there's -- if you deliver your products in Q5, we really commit to delivering on time. And so that reputational part also matters a lot, which is not just that we did a good job, but when we built new functionality, told them it's going to be on a certain date, we hit it.

Your biggest recent win has been Burger King. It seems like you're going to be starting -- you talked last quarter, I think, about 2Q, we've probably started to see some of the implementations. 3Q. I think you've talked about being the heaviest. Maybe just talk about any updates on how that's going with that rollout since it's such a big win for you guys.

Yes. We kicked off the rollouts, I want to say, sometime towards the end of April. So far, so good. It looks really great. We have the business booked for Q3 and most of Q4. So I feel really good about it. But generally, it's like kind of back on track and moving away when we needed to move.

And then I think you've talked about the pipeline being bigger now, I think, with Tier 1 restaurants than it was even when you won Burger King. You talked about, I think at the time, it was 4 -- 7 Tier 1 opportunities out there that were in RFP. You've won 4 of them. Maybe just talk about the pipeline. What are you seeing there? Just any updates on the pipeline?

Yes. I think we manage the options in the business on weighted pipeline more than anything else in that we really try to figure out -- Tier 1 deals are not going to make or break a year anymore. It's the entire sort of span of customers. And so we've just seen continued expansion of that pipeline. And we manage it really -- I said this to people today, but we manage it really tightly. Like we are certainly pitching firms like McDonald's that these enormous customers -- but we don't put those in pipeline because even if you put them at 10% or 5%, this screws up the numbers. And so we have 5 stages of our funnel, each have a waiting and then we sort of overrule where we think like even if we're in the final stage, if we think we're win or not. And that pipeline is the biggest it's ever been for us. And it's great because it's a diverse pipeline from Tier 1 down to the smaller brands. And right now, it looks great.

And then on international, a lot of these brands also have large international presences. You're still predominantly U.S. You acquired TASK. So now you have both a loyalty and kind of the international version of PAR, I think, is kind of the way that you put it. How do you think about the international opportunity? Is it going to be more about following current brands as they try to expand overseas? Just how are you thinking about pursuing international?

Absolutely. I think it was -- the vision was that U.S. brands, the large U.S. brands are growing more outside the United States than the United States. And there is certainly a need to have a more holistic experience. And we really -- we didn't really have an option for them. If we want to build a brand in the U.S., we didn't really know where to send them internationally. And so that was the original motion why we acquired the business, and that's definitely happening. We've sort of got customers that were -- they are like super excited. And candidly, that business is limiting our ability to get stuff out, not demand. That is not a demand-constrained dynamic because there's nobody that really does -- there's no U.S. vendor that does a great job internationally. So that's been crazy exciting. But I think alternatively, there are a couple of brands that are local in the company we acquired that we have no relationship in the U.S. that have now opened us up to that world, which was not something we totally expected, but it's clearly like been an amazing change for us.

And then convenience stores, that's another big area. You did the Stuzo acquisition, now PAR retail. You talked about a little bit, the foodservice, the growth of foodservice, I think, in convenience stores. And I think you've also said you've got the loyalty solutions, you've got the back of house, the data central opportunity. Maybe just talk about convenience stores and how you plan to pursue that?

Convenience is an amazing end market. I wish I bought all the convenience store stocks. What's amazing about convenience stores is that they have this incredible ability to constantly find a new vertical to sell. Like think about the stuff that they sell; cigarettes, fuel; like these are secular declining demand, yet these businesses have been great businesses. And the new thing they're focused on is food. And so we stumbled into this market. This was not a market we had ever planned to be in. But a number of convenience stores have kind of made that push into wanting to be a great foodservice brand. And as we grew and started delivering results, it kind of just compounded and so we decided to go really all in on it with an acquisition that makes us the largest loyalty player there. What's been amazing about that market is, we literally command twice the price that we do in convenience stores and restaurants because there isn't a good alternative, but also because we drive so much value in that market. Now why do we drive more value there? Well, think about it. In a restaurant, there's only so many times they can get you to come back to have the same meal over there. But in a C-store, I get you to come back one day for cigarettes or whatever fuel or all the [indiscernible] demand. So there's just a lot more utility for a loyalty program. The other kind of fascinating part about this is that we're going to run the same playbook we did in restaurants. We kind of -- we now sort of know the key parts within a retail business and what do we want to own and then ability to own and cross-sell. And we have an amazing head start. When we first got to restaurants, like we didn't have that referenceability. I don't -- there really wasn't a referenceable customer in our base, not even one. Here, we have the opposite where every single customer is referenceable, literally -- and it's the CEOs of these organizations. And that's what's kind of gets us so excited is we know that if we have a strong customer CSAT in a core workflow product, we can start to build the flywheel over again. And the last thing, sorry to say is, C-stores are just a lot earlier in the digital transformation than restaurants. Restaurants are now spending money on technology and still have a long way to go, but C-stores are really just like at the very, very beginning of that.

And how do you think about the opportunity? How do you think about the convenience store TAM and the enterprise portion of it?

There's about 150,000 stores that are sort of within our TAM. We're in about 20,000 of them now for just loyalty. And obviously, we're going to build the motion for more products. And so I think that like restaurants, I don't think you're going to have more units, but I think you have a ton of call it price or module expansion within there. And so I think it will be very similar. I don't think all the products will be twice the price like loyalty, but I do think there isn't a digital ordering vendor that exists in restaurant -- in C-stores yet of any scale. There isn't a mobile app vendor. There isn't cloud POS that exist. Like it's really, really early. And so that's what's kind of exciting about it.

Are you start to see any demand for the POS on that side? Or is that...

Isn't a single customer that doesn't ask us to do it. We just have a lot of growth in restaurant POS, and so I don't want to like divert our efforts yet.

Got it. As we think about the setup for this year, I think organic ARR decelerated a little bit. It sounds like a lot of that was due to the Burger King expansion of the contract, so a good problem to have. You've talked about acceleration over the back half of the year. Maybe just talk about some of the factors that should drive that and your level of confidence getting back to above 20% organic ARR growth?

Yes. I mean I think -- what I love about our business is the end market demand is like strong, and I think it will continue for years. we are just in the midst of this Burger King rollout. It has a big impact on our growth. And so we had 18% ARR growth in Q1 without that rollout. And it's just -- this is not going to be a normal -- I hope maybe hopefully, it will be, but it's not going to be a normal year-to-year kind of thing. But our 3 big rollouts for the year all start in Q3, which is a big C-store deal, a big expansion start happening in Q3. Burger King really hits its stride in Q3 and then payments. And so that doesn't really sequence that way or hasn't sequenced since I've been here, but there's that. The other part of it is in the last 2 quarters, almost all of our deals have been multiproduct. And so those have real -- those are big drivers of revenue. We don't get -- essentially we don't get any of that revenue in Q1 and Q2. We get most of that in Q4 and then the next year. And so there's just a lot of momentum in the business. It's -- I don't think quarter-to-quarter is perfect, but I do feel over the long run, the durability of the revenue growth is -- will be strong.

And then you've kind of talked about OpEx being more or less flattish with inflation. So maybe just talk about how you've been able to do that, what you've been able to do with the cost structure to kind of maximize your leverage? And how are you thinking about the need to reinvest, especially some of these big contracts scale?

We're pretty maniacal on the cost side. So we've kept OpEx flat, close to flat, for almost a couple of years, almost 3 years now. But the way we've done it is, I think, not penny-wise fun foolish. We've outsourced R&D to low-cost geographies. That was a huge tailwind for us to have plenty of R&D bodies, but at a low-cost geography. And then I think I'd argue our low-cost geography is actually higher efficiency and output than we had domestically. And particularly when we acquired a business, we're able to push that out there. The second has been on our sales and marketing. On the R&D side, today, we're about 24% of revenue is R&D. That's probably the right level as we continue to reinvest to second part of your question. We spent 14-ish, I forget exactly 14% to 15% of our revenues on sales and marketing. Again, I think that's near best-in-class. And what's happened there is that we just continue to realize that one salesperson can sell not 1 product, but 2, 3, 4, 5 products. And what is kind of fascinating is a lot of our sales headcount was the support staff, sales engineers, solution architects. But as those products become one, you need less and less. And so as an example, Burger King, the biggest deal ever, it was 1 salesperson who brought those 2 products, 2 and 2.5 products in, 1 sales engineer. Normally, that would have been 3 people. That's really powerful. Why? Because it's running off the same code base. We just won a big loyalty deal where we -- because our loyalty code is now at the point of sale, there was 1 sales engineer. And so that's a really powerful tool. And so we've been able to rightsize the sales force to do that. That's kind of second level. And so the only place I don't think we're best-in-class is on G&A, where we're kind of smack in the middle of revenue companies of our size. And that to me is just scale. As we get larger, we'll be able to do it. And I think I'd argue that our G&A is pretty decent given that we have this legacy 45-year-old hardware services business that just is a big part of the G&A base that we have to outgrow versus peers. So I think we're going to be a super profitable business, and I think we're getting there faster than people expect.

We maybe have time for one question from the audience, if anyone has one. Otherwise, I can throw on another question. Maybe talk about M&A. I mean, you've bitten off a lot. What's your appetite for additional M&A going forward?

For us, it is product related. It is -- and today, there's kind of 2 things we're spending a lot of time in. There are 3 or 4 sort of like mega companies in our space. Again, that is mega for our world is not the big software world. And we want to take big swings of them because we always view them as super synergistic from a product perspective. And so we are going to see if we can make those happen. But those deals, they're binary and you never know when they're going to come or not come, and we don't kind of bet the company on it. The second area that I think you'll see us continue to look at is the in-store operations that you talked about. It is really clear that if you sit with the CIO or CEO of a restaurant and you remove their fear of like, call it, the macro of what's happening today in the world, like their biggest insecurity is their operations. It's not they just don't know how they're going to be able to run -- employees are unhappy, customers are unhappy in the store, and there's just so many -- so much wastage. And so we'll probably continue to look for stuff in that area. But honestly, we're building so much now with AI that the bar is just getting higher to buy something.

All right. Well, we'll end it there. Thank you so much, Savneet. The break house is going to be upstairs.