TKO Group Holdings, Inc. ($TKO)

All right. We'll get started. Happy to have back at the conference from TKO Group, Mark Shapiro, President and COO. Mark, thanks so much for being back here.

Thanks for having me, David.

Okay. So Mark, earlier this year, you termed 2026 as a year of execution. So in that context, can you speak to where your highest priorities are at the moment?

Yes. I think just consistent with what we've said on our earnings and our forecast and guidance coming into the year, this is a high-quality execution story. We are singularly focused on operational execution. And we've got a full play, not too much, but we have certainly a full menu of offerings that we are uniquely focused on as we head into the midpoint of our year. First and foremost is, of course, our distribution deals is, I think, as most know, we have a new -- our second year of our deal with Raw with Netflix. We have our WWE PLEs now with ESPN. And obviously, we've kicked off a successful partnership -- initially successful with UFC and Zuffa Boxing with Paramount+ and the myriad of offerings across the CBS [ Peg ] platforms. So distribution, making sure that, that's hitting on all cylinders, production quality, the marketing behind that, the earned media that we gained from the [ Polar ] of platforms that [ Peak ] has, engagement making sure the cards are up to standard and getting the draws that we would hope they would, the [ marketing ] power ESPN brings to the table, making certain we're maximizing that. And then you go to global partnerships next. I think we've given guidance to 2030 that we would do $1.2 billion. By the way, a contributor to that is some of the ad inventory we will soon be selling related to the [ Peak ] deals and other offerings, but specifically, that will be a big bellwether -- and we're feeling good about that, trying to surround ourselves with the right brands and the right earned media vis-a-vis the marketing power those brands bring to the table. Third would be live events. I'll tell you, David, even at earnings time, a lot of question rightly so, but a lot of question, given what's going on in the Middle East and just around the world at would we see a fall off? Would we see a tick back, if you will, and we're seeing no consumer pullback whatsoever. In fact, just post our earnings, our UFC [ 328 ], which was in New Jersey, not only sold out, but this was the third straight year. So it wasn't like it was new to the party. It wasn't a big new glitzy event. The third year, we had a UFC [ numbered ] event in New Jersey, and we set the record at the gate. So that just gives you an idea how strong and robust it has been, and we're thrilled to see that. And that dovetails with our FIP strategy, our financial incentive packaged strategy, which, again, on the guidance, we've said we'll do $380 million to $420 million by 2030. Now the [ we're ] doing a little over $300 million but we have three WWE events are normalized. It would be $240 million, but all systems go on that front, and we can talk about that strategy certainly later. And then as you move around the rest of the business at TKO. Zuffa Boxing is a big growth opportunity for us an organic growth opportunity. We're in line with our plan. We're in line with our [ for ] -- it's already profitable, albeit we don't consolidate, but largely because we've done two big media deals, one with Paramount for the boxing and then, of course, with [ SI ] as well. So boxing is off and running, and [ Danawhiteis ] is signing a whole bunch of fighters. And then on the allocation front, the experiential business is still very strong right now. We've got the World Cup just about upon us here. And despite what's going on overseas and a little bit of anti-American sentiment, we're ahead of plan there. We've already guided to approximately $75 million in EBITDA for that our World Cup event, and we're on track for that. And I would tell you, the LA Olympics, I mean, these are -- this will be his going out-party, meaning President Trump, but they are -- we're really bullish about the opportunity there. I mean we're over $250 million right now at this point already in hospitality, experiential hospitality sales packages and we're 2 years. And then finally, UFC [ 250 ], June 14, at the White House, all eyes upon that. And really everybody we have across the board is working on putting that together.

Mark, that was a great overview. We're going to get into a lot of that. Maybe I'll start with this. I asked you [ everyone ] of this question a year ago. When you look at WWE and UFC at the current moment, how do you gauge the properties on factors like fan engagement, star power, cultural residence? And how much higher do you see the ceiling for their popularity, both in the U.S. and abroad?

Yes, good question because engagement is very much the name of the game for -- certainly for us, [ I ] would argue for any content property out there. And of course, it's a clouded environment, and it's very fragmented. Look, for us, we sit squarely at the center of sports and entertainment and that overall ecosystem. That's where we are. And we stand out because we're a year round. We happen to own the league. You're not going through a lot of webs to get decisions made or to innovate. We're scalable. We're global. Were young or diverse. We have high engagement, which builds over the course of the night across our cards. And we're always building. We don't -- we don't rest on our [ laurels ]. We don't [ move ] reliant pass champions. We're always building new starts. In fact, in the WWE, we've actually added some cards for [ xTerrain ] we think we have a couple of stars that are about to pop and we want to give them more stage time, if you will. I would also tell you that at TKO, we institutionalize events built on scarcity and durable repricing power. And then I would say finally, when you just overall look at where content is, experiences, events and folks that are lining up, consumers that are lining up to see them, AI is here and now, right? And is the adoption of AI further increases, what you will see initially is a real boost in digital, I would say, so low digital consumption. And as that progresses, ultimately, that will strengthen the need and strengthen the demand for physical aggregation, which is consumers, families, fans that want to get out inside the room all day, they're on the screen, they're working. They're also more efficient. And when they have that opportunity to now get out into what is an extended weekend they're going to jump on it. And that's why you see today, even in this economy, with the affordability crunch and what's going on from a geopolitical perspective, retail sales are strong. And not just with us, you saw with Live Nation on the Walt Disney Company, no consumer pullback.

Just staying on that macro backdrop, interesting moment, right? On the one hand, you have the conflict in the Middle East, that's lifting energy prices, it's complicating events in the region. Other hand, right, all the beneficial kind of long-term trends you talked about driving the demand for experiences. So how do you kind of account for those cross currents in your outlook?

Yes. Look, we're -- we have six events, six events in the second half of the year across Zuffa Boxing and UFC and WWE that are in that Middle East region that you're talking about. And I would just tell you where all systems go. In fact, we announced a UFC Fight Night just this morning that we're adding to Abu Dhabi. And what's happening is as we have our virtual meetings with our partners in Saudi and our partners in Abu Dhabi specifically, they want more events. This whole fiasco isn't over yet, and nobody can really prognosticate when it's going to be over, if it's going to be over. I mean, look how long the Ukraine, Russia saga has dragged down much longer than anybody thinks. But that region, in particular, is very focused on showing the world, they're still open for business, right? They might not be able to get a vessel out of the Strait, but they are open for business. And they want more events, they want music, they want comedy, and of course, headline by they want more sports. So they're bullish to put them on. Our Royal Rumble in January, albeit that was before the whole saga and the Iran conflict. Big sell-out show. We already have meaningful fan bases there, David, and their passionate fan bases and they've signaled to their governments that they want more, and we're first in line for many of these countries.

Great. So let's get into UFC. So with Paramount's guidance, you made a big change to your domestic distribution, moving the transactional paywall for your biggest events for certain fights. [ You've ] also extend the distribution into broadcast of CBS, so Mark, what's the impact of this wider reach to date, both with fans and then your various stakeholders?

We're checking all the boxes as it relates to Paramount. They have been a really a superb partner, which says even more when you realize that ESPN was the greatest of great partners. And Paramount has picked up on that and they have [ pulled ] off of that. You [ obviously ] the Paramount earnings call and David Ellison talk about the success they're having with the UFC, not just in terms of subscriber sign-ups acquisition, also on the retention side. And I would say most meaningfully in the ancillary program [ over ] millions of minutes are being watched vis-a-vis the UFC, and it's our storytelling, right? It's a lot of our long-form programming, not just the fights themselves. So that's a harbinger of what's to come. There were much younger than anything they put on there. We're certainly much younger than CBS. We've benefited from the fact that they're using all of their platforms, not just to market us, but if you look at CBS and the way we've popped when we've had a few of our prelims or undercard fights on the CBS platform as a simulcast. So that's been a good story as well. And I will tell you, I'm really excited I should say, we're really excited by what is ahead and that is when they close, when and if they close their Warner Bros. deal, at this point, everything looks -- thumbs up, and I think it should happen, by the way, we're going to benefit from that -- we have opportunity to have UFC and Zuffa Boxing not just on the Paramount Networks, as you know them now, but TNT, which is known as a sports network, CBS, which is known as a sports network. HBO, which has historically been a big boxing network, and then you throw bleacher report there. Not to mention if you really pay attention to what they're doing from a marketing standpoint and the way they're distributing content, they have all kinds of partnerships with YouTube. And we will benefit from that as well.

Maybe following up on the numbered fights. Has there been any concern from you or [ Dana ], that removing what was previously an $80 pay-per-view fee, essentially making the price of those fights equal to the price of a fight night, does that remove any signal to the fan about the uniqueness of those cards?

Absolutely not. It's -- like, keep in mind, when we have our -- what is normally a monthly number event, and we have 13 a year of them, so I say roughly, every month. These cars have championship fights on the card. The fight nights don't have championship cards. So that alone signals it's something different. Also, we look at the marketing spend and the power, the number of GRPs that they put behind marketing those number of events you can tell this is something different. This is a musty event. So not concerned about that at all. And I would just tell you that getting out of the pay-per-view business, there's a time in place for it, and it's how the UFC was built and it made a lot of sense, and it was a big winner for many, many years, but we're past that. And we want our content to be accessible to the broadest audience possible. And not having that big paper [ price ] allows us the opportunity to do just that. They see the promotion. They feel the weight of the marketing. They see the match-ups. Hopefully, they have a rooting interest or they're just a casual fan that wants to sample. They know where to go and they can get at a very affordable price even in this economy.

Maybe just staying on distribution. So in any given year, you have a number of your UFC international media rights coming due. Can you speak broadly to the market opportunity there and kind of how you approach selling the fight nights and the number of events abroad?

Yes. International also is strong. I would tell you that we signed China earlier this year with [ Miguel ] in the fourth quarter. We resigned in Australia and New Zealand, and we're getting healthy increases much smaller dollars, David, than when we get our domestic deals. And right now, we're just about finalizing Spain, Belgium, Netherlands and Scandinavia, with Canada on the horizon, and we're seeing 40% to 50% increases in the AAV on these deals. Again, smaller dollars, much smaller dollars. But nonetheless, it's a good trend.

Are you finding any particular distribution in those markets? Or it's all market-by-market basis?

It is market by market. And by the way, some -- it's not only some markets are linear still and some are linear and digital simulcast and some are just digital-only streaming is what I mean to say there. But at the same time, on some of these markets, we're just selling the number of events, and in some of these markets, we're just selling the fight nights and the library or it could be a [ mishmash ] combination. So different strokes for different folks, different checkbooks out there. different appetites. And again, we're a young sport. We're not -- we haven't been around 100 years like Major League Baseball. We are still very much in the fan base building mode.

So you touched upon this earlier, but when TKO reached agreements with UFC on [ parent ] and I think this applies to WWE on ESPN, but a highlighted key negotiated benefit was advertising inventory for the company on live streams. Maybe can you just speak to how you're executing against that to date.

Yes. We're in the process. We're actually in the latter stages of hiring adding on, bolting on to our team, experts that sell media. It's a different cell than selling sponsorship global partnerships, even really then selling digital. So we're -- we've built up our team, frankly, a lot of names from [ iPass ] to ESPN, and I think some of the best-in-class that are out there today from a streaming perspective. And we will begin to start offering packages of inventory that have, of course, signage and have, of course, integration, have broadcast integration, very different in arena, outside the arena, retail marks, et cetera, but also include actual media. We don't want to get in the way of Paramount, right? They paid a lot of money, made a big investment in the UFC and they're out there selling those packages. So we're not going to compete with them, but we're working, I would say, in tandem on various categories where we're going to sell or where they're going to sell or well, we can play kind of the B train to their a locomotive.

Maybe just staying on partnerships and marketing. So TCO, as you noted, has provided a goal of $1.2 billion in revenue by 2030. You ended 2025 at $475 million around there. Maybe just help bridge those two figures, how you think about the biggest opportunities, including items like new inventory, new sponsors, new categories.

Yes, it's a mix. It will always be that. We have -- we have categories that peel off year by year that we renew a big increases given where we are versus where we were. Keep in mind just on the UFC alone, we're in 170 countries. So there's global opportunities as well. But then we also have new categories that we're finding all the time and kind of beating our chest about our creativity in finding those categories. And then we're also, as I mentioned, with the media, we have more inventory. We have really a diverse portfolio of inventory to sell. So you have -- you have some advertisers coming to the table that are just looking for digital media buys. You have some that are still looking for linear broadcast. You have some that really want that experiential activation and some are all of the above. And I think we're benefiting on all fronts. Obviously, this is an ambitious guide to get to the [ 1.2 ] in 2030, but we feel great about it. And to your point, we did 400 -- approximately $475 million last year, just on the UFC and WWE. Remember, the 1.2 is for all the TKO 475, just on UFC and WWE, and that was ahead of our $450 million plan that we had stated publicly.

Okay. So you highlighted earlier, you see [ FREEDOM 250 ] that have been less than 4 weeks away now. I guess, besides the incredible image of an Octagon placed on the White House lawn, what should we all be looking forward to from the weekend?

Yes. I would tell you, as I mentioned on the earnings call, we will be meaningfully higher on the spend for Q2, which is where, of course, the June 14 event takes place. And that's really due to the fact that the -- it's just blown up, right? It's the festival that's going to be happening adjacent on the [ Ellipse ] has gotten bigger, is at Brown is playing there. The whole festivalization of the event, we've added a fight to put on the card up from 6%. So we'll still have what we guided to was a $30 million loss, which is just a onetime, but the expenses will be up meaningfully -- but it's going to be a show, right? It's flat day, it's the President's birthday. He's one of the biggest -- not just, by the way, UFC fan. He's a major WWE fan is in the hall of fame actually of the WWE. So he's very much behind this. We're working hand in glove with the administration. We're 2 weeks away from being basically on site to get the build up in time for the June 14 event. And we're having all kinds of client events and dinners and activations. And as you can imagine, all of our global partners want to come to the event and we aim to please. So this is an international event. I mean this is the true event where we're going to be having news outlets, cover the event, not just the sports media. So it's -- it should be very exciting. About 4,000 people will be there, 1,100 will be military guests, friends and family and then between us and the White House which mainly means the White House, there will be another 2,900 guests.

For WWE and UFC, you noted earlier financial incentive payments as a growing revenue line target of around $400 million by 2030. Maybe just expand on how you plan to develop the model and then how you weigh the offsets to the FIPs like sometimes doing events in small regions?

Yes. Look, it's -- frankly, there's not a lot of science to the weight part of the question. So keep this in mind. I mean look, you're always balancing in this business. Even what cities we choose to go [ or ] even if there wasn't financial incentive packages, you're always balancing what's best for the brand, what's best to serve our current audience, what's best to grow our future audience and expand our audience and then, of course, who's at the table with what kind of financial incentive package. I think as part of this, it's important to understand the thesis behind our financial incentive package strategy, which is pretty clear cut. We have [ freemium ] content that is in demand. And as such, there needs to be government and private financial incentives that reflect the economic and cultural impact we bring to these cities and regions. And that's where the rubber [ meets ] throw, that's where the conversations take place. I would tell you that it's very robust right now in the marketplace. Every time we do a big deal, we announced it. You saw we announced a big deal in Arizona, we'll be bringing seven events over the course multiyear, multi events. We also have Philadelphia, which we just announced with Governor [ Josh Bureau ], and that's -- we haven't been to Philadelphia in a while, and that's a good deal for us. And then, of course, we just or [ Bausajan ]. So you see the stretch from Philly to Baku. And the line is long and even our current partners as evidenced by our announcement this morning. I mean Abu Dhabi already has a lot of UFC, but here they are looking for more. Saudi already has a lot of WWE and here they are looking for more. So it's a robust marketplace. Our premium content is in demand. We have a number of different geographies that want to play. We are not out there maximizing the market in terms of dollars that will never be the case. We will do always what's best for the product, what's best for the brand and at the same time, try to balance the economic impact we'd like to have on balance sheet.

With WWE, I think [ Backlash ] was your 7 PLE on ESPN unlimited. Can you just speak to the evolution of the product since you launched with [ Restel palooza ] and what it's meant to have WWE integrated with that ESPN brand that I know you know very well?

I think the marketing that ESPN has put behind the WWE is beyond anyone's imagination. And that's certainly where we stand. I mean to sit there on a Friday, even a Thursday and see all the promotion, all the content, all the interviews across first take, which is the show is hosted by [ Stephen A ]. Smith, highly rated. Get up, which is hosted by Mike Greenberg, highly rated. The [ pataca ] show. He's goes on for 2 hours. Obviously, he's a commentator on WWE events, so it makes a lot of sense. It's very authentic. It's very seamless and then he goes and does another hour on YouTube. It's just incredible. The amount of weight they're putting behind this. And obviously, we are a major tenant and anchor of their ESP and unlimited strategy. They have now closed many of their deals with their platform providers. I think we're waiting on YouTube TV, which is an important one because a lot of Gen Z is watching through YouTube TV. I know certainly, my sons are. So I'd like to see that deal get done and I think they're going to get it done fairly soon and make a big announcement out of it, and that will just play to our favor. Then they'll have all their deals done and then it just becomes an education process and how easy it is to sign up for ESPN Unlimited. especially if you already have a deal with the satellite provider or a cable provider where you can just authenticate and not have to pay any more money incremental. So that's going to be a great story for us and ESPN is going to get take up because their roster, meaning their portfolio of content is so extraordinary, and now they have [ MLB.TV ] on there as well. So if you want all your regional games from an MLB perspective, you get it all at ESPN. It's really a great value play. It's just going to take some time to get the kind of take-up that they would expect and we would expect.

Before we pivot, I want to ask about the domestic media rights market, a lot of eyes on the NFL, whether they enter the market early. There's a significant implication for properties coming after [ FBNHL ]. You go further down the line. NXT smack down. So this is my really early question about how you're thinking about the rights landscape.

Well, look, we've got $15 billion of deals that are contracted for the next 5 to 7 years. So recurring high-margin revenue that is locked in place. So we're sitting in a good place. There's all kinds of opportunities, ancillary programming or maybe you're adding fights or different events to any of those sides, not to mention some of the other TKO stuff like Zuffa Boxing or like PBR which is a winner for us as well. So you're always looking to be creative on that front. But we're locked and loaded. Nonetheless, we pay attention to it, especially as [ it ] gets constrained or get expanded in the case of Netflix, ever since they got out of the WBD pursuit. And we look to take advantage of that marketplace. If the NFL, which is the best sports and entertainment property in the entire world goes out there and takes -- and ends up renewing their deals across the board, sure that's going to take some money out of the system. But I believe that would probably affect other Tier B or Tier C properties. The premium inventory, the premium content that draws the big eyeballs that gets the major engagement. If you keep investing in that and those kind of properties, I mean, from an investor standpoint and as a content creator, us, meaning TKO investing in those properties, not taking it for granted that we already have deals locked up then you're going to be in good shape.

Okay. Maybe just one last one on UFC WWE before you pivot. But this last weekend, we saw on Netflix, they staged to fight between [ RondaRowsy ], [ Genaro ] I think it was reported that was pitched to UFC. Just maybe kind of help us understand why, ultimately, that wasn't the right fit for you?

Yes. That's a good question and obviously a timely question. Look, it was pitched to us beforehand and we did turn it down. That's to take nothing away from Netflix. First of all, they're a great partner, and clearly, they know what they're doing across the board in every genre right now. That's -- you don't get to 300 million or 350 million subs for nothing. Their content offering is unique and really, really distinct and kind of has something for everyone. They're in the big event business. They've been very clear about that. Not looking necessarily to buy out leagues. That's why they did the Major League Baseball opener. That's why they do the home run [ Derby ]. That's why they just did a 5-game package with the NFL. They want big spectacle events, and they saw this as a big spectral event. We're in the true MMA business on a meaningful consistent basis. And when we looked at this potential match up, Keep in mind that there is a real art and skill to matchmaking, right? When you ask [ Country Campbell ] and [ Dana White ] what they think about that match-up prior to the fight happening, the answer is we got back, and I mean are [ Emmanuel ] and myself was that fight will be over in 20 seconds. They were off by a few seconds. And I don't believe that a fight like that, just the way it played out is really good for MMA because -- especially because it's Netflix, and they have such an incredible global audience. And -- it's a massive a audience. It's a highly engaged audience that is going to sample depending on what comes up on the front page with Netflix for them to then go to that fight and then think that's what MMA is I don't believe is good for the sport long term. And we saw it that way and decided to pass on it, taking nothing away from the legend obviously that [ Ron erase ] is and the win that she got. And I guarantee incredible viewership numbers that Netflix will soon report. But for us, it was more of a stunt then a meaningful MMA event.

Got it. Maybe pivoting. So Zuffa Boxing launched earlier this year. It has distribution on Paramount+. Starting a league is never easy. We saw that recently been [ live ] golf, Mark, you've seen a number of start-up leads come and go over the years, right? So what kind of gives you confidence in Zuffa?

Well, look, we're -- as I mentioned earlier, we're ahead of our internal forecast. It's already profitable. We have tremendous partners in that are very aggressive. I mean, the they would like to see us -- we report it, we'll do 16 or 17 events. They would like to see us ramp that up. And of course, you've seen how active they've been in the super fight space, which is like [ Canela ] Crawford, which we put on -- we did the media deal and we worked on sponsorship with them and we also produced the event, and we also promoted the event. So they like to see more of those matchups and they want to use those matchups to drive Zuffa Boxing. But we're just in a good place. We've already signed over 100 fighters. As I mentioned, we have our deal with [ PSG ], which is multiyear. We have our deal with Sky. And of course, U.K. is a huge market for boxing. And we're in the space of building firm value. And as we hit certain milestones, we earn into more equity. And we're just about to earn into our second tranche of equity. So boxing is right for this. I mean it's just -- it's really ripe for this opportunity. It's been just too scattered, too messed up, too much corruption, too many promoters, too many sanctioning bodies, just hard as a fan, and I [ begrudge ] no one their livelihood, but too hard for the fan to be able to follow it make sense of it, not to mention to actually create superstars and household names like dating myself growing up at [ Sugar Ray Leonard ], well, we need more of that. And that's what Dana White and [ Nikon ] are setting out to do at Zuffa Boxing. And we have a ready willing and aim partner to to stay behind them. So really optimistic about this opportunity, especially because we're in a place, even though we remind the street that this is a year of execution, we're in a place where we're constantly being asked what's next. What are you going to buy? What are you going to acquire? What else is out there? And we're not hunting for anything. Instead, we haven't right here homegrown in boxing, Zuffa Boxing.

Got it. You talked earlier about the World Cup and on location, maybe just would that be a month away, speak to how demand is shaping up and the learnings you've gotten from that in Milan as UIL in 2028?

Yes, Milan was a terrific event. Look, I wish that they had other facilities built a little earlier because I think they could have done even better on ticket sales in experiential hospitality, but nonetheless, it was an extraordinary Olympics. Extraordinary performance in a month United States as well and that always helps because Americans travel to Olympic Games consistently. And when they're there, they spend in a big way. So Milan was a tremendous event Milan itself was incredible. Cortina in the village and what they offered there was a site to see. And that bodes well for what's to come in L.A. Always good to get it back on U.S. soil and that will be a real win for us. And the World Cup itself. I mean you can't get better. Mexico, North America, crazy volume of actual soccer or football fans and we'll take full advantage of it. And all the trends are there. And David, if you can have these kinds of trends with the geopolitical issues we're seeing from a macro perspective, that just gives you great enthusiasm and confidence for what's to come with L.A. And we're out of the gate strong and much more to come because, as you know, [ LA-28 ], they've just been teasing some ticket sales is what call it, right? They haven't put big allotments out there yet. So the big stuff is still way in front of us.

Got it. We have about a minute, but your guidance for the year includes 600 basis points of margin expansion. Mark, you get this one off in, but as you execute across these growth initiatives, how do you think about managing that expense base long term?

Yes. Look, we are -- I mean highly focused from the start to finish from the top of the house to the bottom of the house on margin accretion. And to your point, at the midpoint of our guidance has us up 600 basis points to 40% margin. And at the same time, we're very focused on those FIPs. Build value, make the product better, more great storylines, good rivalries, good stars, and you're going to be able to sell those FIPs. And keep in mind, the TAM is 500 events a year. It's not just the number of events that you FC or the PLEs at WWE. It's the fight nice, it's the PBR, it's Zuffa Boxing. It's Raw, it's SmackDown, it's NXP. So there's a lot to sell. So we think there is ample opportunity for more margin accretion specifically in the next 2 to 3 years. And at the same time, we're very lean on the cost structure. But you have to balance being lean with investing in your product. We will always invest in our product. We are doing just that. And as it relates to fighter pay or it relates to Superstar Pay, we are uniquely, I would say, uniquely focused on it. And looking at every opportunity to provide more capital for those investments and also from an ancillary perspective, seeing that our partners, global partners and some of our geographic partners are focused on our fighter pay and our superstars as well.

That's a good note to end on. Thanks, Mark.

Thank you, David.